Full text of Monthly Labor Review : January 1943, Vol. 56, No. 1
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J A N U A R Y 1943 i' THE FOUR FREEDOMS 4. Freedom From Fear III this Issue • . • Absenteeism and War Production . . Manpower Control in Germany . . Sta bilization of Millinery Industry U N IT ED STATES D E P A R T M E N T O F LABOR • BUREAU O F LABO R STATISTICS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNITED STATES DEPARTMENT OF LABOR F ran ces P e r k in s , Secretary + BUREAU OF LABOR STATISTICS I sadoe L tjbin, Commissioner (on leave) A. F . H in b ic h s , Acting Commissioner D onald D avenport, Chief, Employ ment and Branch Occupational A byness J oy, Chief, Prices and Cost Outlook H enby J. F itzgerald, Chief, Business of Living Branch N. A rnold T ollés , Chief, Working Conditions and Industrial Relations Branch Management Branch H ugh S. H anna , Chief, Editorial and Research S idney W. W ilcox, Chief Statistician DIVISIONS Construction and Public Employment, Herman B. Byer Cost of Living, Faith M. Williams Employment Statistics, Lewis E. Tal bert Historical Studies of Wartime Prob lems, Stella Stewart Industrial Injuries, Max D. Kossoris Industrial Relations, Florence Peter son Labor Information Service, Boris Stern Machine Tabulation, Joseph Drager Occupational Outlook, Charles Stewart (acting chief) Post-War Labor Problems, Dal Hitch cock Price Analysis, Walter G. Keim Productivity and Technological De velopment, W. Duane Evans Retail Prices, Ethel D. Hoover Wage Analysis, Robert J. Myers Wholesale Prices, J. M. Cutts The Monthly Labor Review is for sale by the Superintendent of Documents, Washington, D. C. Price, SO cents a copy. Subscription price per year in the United States, Canada, and Mexico, $S.50; other countries, $Jf.75. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis li Jlf li MON TU "Y% 1 li w* W i ji là ìè ■ ■ U N I T E D S TA T E S D E P A R T M E N T O F L ABOR B URE AU O F L AB O R STATI STI CS ************* EDITOR + HUGH S. H A N N A , C O N T E N T S + ************* J A N U A R Y 1943, Vol. 56, No. 1 Speciallarticles: t Problem of absenteeism in relation to war production_____________ Manpower control in Germ any______________________ ______ Stabilization of millinery industry, 1936-41_______________I ______ Page 1 10 22 Wartime policies: Centralization of manpower control_________________________ Regulation of wages, absenteeism, and hours in A ustralia_________ Subsidized control of living costs in Canada and G reat B ritain____ Compulsory labor service in France_____________________________ Extension of manpower controls in New Zealand_________________ 26 28 32 33 33 Employment and labor conditions: Adjustm ent of labor standards to war needs in New York__ Recruiting of Italian metalworkers for Germany, 1941____ C ontract conditions of foreign workers in G erm any_______________ 38 42 43 Post-war labor and social policies: Policies for post-war reconstruction in Great B ritain______________ 46 Women in industry: Opinion on women’s wages in Australian m etal trad es_____________ 53 Youth in industry: Post-war em ployment of juveniles in G reat B ritain_______________ 56 Industrial relations: Decisions of N ational W ar Labor Board, August and September 1942 59 Industrial disputes: Strikes in November 1942__________ __________________ Activities of United States Conciliation Service, November 1942____ 68 69 Education and training: Policies on war-training production work in vocational schools _ War organization of high-school students_________________________ 72 74 Industrial accidents and health: Accidents and health in British factories, 1941_______ Public health in G reat Britain in 1941-42_______________ ' 76 79 " Court decisions: Court decisions of interest to labor______________________ 84 Cooperation: Cooperatives and post-war problem s___________________________ Electricity cooperatives, 1941_______________________________ Features of cooperative housing_______________________ " ______ 86 91 93 Cost of living: Changes in cost of living in large cities, November 15, 1942_________ Indexes of cost of controlled and uncontrolled goods and services___ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i 42 7376 100 104 Contents II Wage and hour statistics: Page Earnings in m anufacture of mechanical power-transmission equip ment, 1942___________________________________________________ Wage rates of union street-railw ay employees, June 1, 1942------------Wages and hours of union m otortruck drivers and helpers, June 1, 1942_________________________________________________________ W age-rate changes in United States industries_____________________ Canada—wages in 1941--------------------------------------------------------------- 109 119 128 135 138 Wage and hour regulation: Delegation of wage-approval power by War Labor Board___________ Salary regulations of Commissioner of Internal Revenue___________ Minimum-wage rates in Mexico, 1942 and 1943-----------------------------Paraguay— Pay increases, 1942___________________________________ 148 149 153 155 Labor turn-over: Labor turn-over in m anufacturing industries, October 1942___________ 157 Building operations: Summary of building construction in principal cities, November 1942_ 162 Retail prices: Retail food prices in November 1942--------------------------------------------- 166 Wholesale prices: Wholesale prices in November 1942______________________________ 174 Trend of employment and unemployment: Summary of reports of em ployment for November 1942____________ D etailed reports for industrial and business employment, October 1942_ Em ploym ent and unem ployment in November 1942------------------------ 179 183 196 Labor conditions in Latin A m erica ____________________________ 153, 155 Recent publications of labor interest ----------------------------------------------198 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ftm yiC T O R Y BUY UNITED STATES W AR BONDS This Issue in Brief Absenteeism and war production. Absences of workers from their jobs, not a particularly im portant m atter to the N ation in peacetime, become of vital interest when the country is a t war and bend ing every effort to attain the utm ost in production. Although d ata on the actual extent of absenteeism in industry are meager, scattered reports indicate rates ranging from 2 to 15 percent or more. A series of studies in process by the Bureau of Labor Statistics should cast light on the situation in various industries. The general problem of absenteeism in wartime, its causes, and possible measures for its reduction are discussed in an article on page 1. Adjustment of labor standards to war needs. Requests for relaxation of labor standards have been made by m any employers in war industries to enable them to meet demands for maximum possible produc tion. The State of New York has granted dispensations from the labor law when necessary, b u t under carefully prescribed standards and lim itations. An analysis of the dispensations granted during the first 6 months of the war indicates th a t there has been a change in the character of the dispensations requested, as em ployers have made adjustm ents and have come to realize the need of conserving manpower for w hat may be a long war. Requests for a 7-day week in the summer of 1942 were generally for a limited tim e during an emergency or to relieve bottle necks of production, rather than for a continuous 7-day week, and requests for m ultiple shifts for women were more numerous than requests for longer hours on the day shift. Page 38. Earnings in manufacture of mechanical power-transmission equipment. In the spring of 1942 hourly earnings in plants m anufacturing mechanical power-transmission equipment averaged 90.1 cents per hour. During the period from August 1939 to the spring of 1942 earnings increased 17 cents an hour, or from 73.1 to 90.1 cents. Some of this increase was the result of overtime pay m ents for longer hours, as the average workweek increased by more th an 10 hours during the period. Male workers had straight-tim e average hourly earn ings of 84.8 cents; earnings of women averaged 56.7 cents. Page 109. Regulation of wages, etc., in Australia. A ustralia’s wage-freezing order of February 1942 has h ad a widespread effect and the number of exceptional cases in which adjustm ents have been perm itted has not been sufficiently large to affect the general principle of freezing real wages. I t is not known to w hat extent the regulations served to prevent demands for wage increases. The chief difficulty under the defense regulations is absenteeism. The Government looks to labor and m anagement to reduce absence. The G overnment’s direct contribution tow ard solution of absenteeism is a ceiling on hours of work am ounting to 56 hours weekly for adults and 48 for young persons. Page 28. Stabilization of millinery industry, 1936-41. The New York millinery m arket has since 1936 operated under the supervision of the Millinery Stabilization Commission, an unofficial supervisory and adminis trativ e board created by joint agreements between workers’ and employers’ organizations in an effort to stabilize the industry. In its report for 1940 and 1941 the commission, reviewing the condition of the industry during the period of its supervision, compares the experience of the New York m arket and th a t of th e rest of the country. Seasonal fluctuations in employment, it states, were not so wide in New York as in other parts of the country, although about the same in 1941. Increases in m onthly pay rolls were also more marked. M anufacturers likewise had an encouraging increase in volume of business. Page 22. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis hi IV This Issue in Brief Wage rates of union street-railway employees. The average hourly wage rate of union motormen, conductors, and bus operatore in 62 cities was 84.8 cents on June 1, 1942. Wage rates as indicated by union agreements for street railways have advanced steadily during recent years and were on the above date 28 percent above the low point in 1934. Page 119. Accidents and health in British factories. The increase in reportable accidents in 1941 in British factories was again very high. There were 1,646 fatal and 269,652 nonfatal accidents during the year— an increase of 20 percent and 17 percent, respectively, over the figures for 1940. The largest increase in accidents was among adult women who, the figures indi cate, have not only taken up a great share of munitions work b u t also their share of the dangerous processes in these industries. A generally accepted cause of the general increase in accidents is the increase in the pressure of war work and the fact th a t this work is so largely carried on by inexperienced workers. In contrast w ith the increased accident rate the health situation appears to be good, as the report of the Chief Inspector of Factories states th a t there is no reason to believe th a t there has been a general adverse effect on the health of workers from wartime influences. The most im portant factor in the m aintenance of health is believed to be the provision of canteen meals for workers at reasonable rates. Page 76. German labor-control policies. During the past decade three periods can be distinguished in German policies regarding employment. In the first period (1933 and 1934), when there was wide spread unemployment, Government measures were directed tow ard reducing the num ber of persons on the labor m arket and spreading the available work. In the second period (1935 and 1936), when the lack of skilled labor began to be evident, various steps were taken tow ard the control of labor and its direction into desired channels. Since 1937, in order to meet the demands of “to tal w ar,” the policy has been aimed a t overcoming a general labor shortage, and has led to the most absolute control of workers, employers, and the hiring and firing processes. The various measures taken by the authorities during the decade, and their effects, are discussed on page 10. Wages and hours of union motortruck drivers and helpers. The average hourly wage rate of m otortruck drivers in 75 cities was 89.2 cents on June 1, 1942. Unionized helpers averaged 72.8 cents and the average for the combined truck driver and helper occupations was 86.8 cents. Actual rates for drivers ranged from 30 cents per hour for taxi drivers in Charleston, W. Va., _to $2 per hour for operators of dump trucks of a capacity of 8 cubic feet or over in St. Louis. Page 128. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW FOR JANUARY 1943 PROBLEM OF A B SEN TEEISM IN RELATIO N TO WAR PRO D U CTIO N By D u a n e E v a n s , Bureau of Labor Statistics ABSENTEEISM, the failure of a worker to appear at the job he is scheduled to do, is a matter of growing concern to those entrusted with the responsibility for war production. During peacetime, a cer tain amount of absenteeism was expected and accepted by employers, and it was kept within bounds by minor controls. Production sched ules were usually flexible, and enough trained workers were ordinarily on hand to insure that no serious interruption in work resulted. As the demands of war production bring us nearer and nearer to the exhaustion of labor reserves, the problem can no longer be viewed com placently. Thus far, war production generally has not been limited by absenteeism. In many cases, shortages of raw materials and semifabricated items, and of the facilities needed to produce them both, are more important than absenteeism in restricting production, and workers are still available in sufficient numbers in most areas so that cushions of a few extra workers can be arranged to guard against production delays. However, what may be said in general does not apply in particular cases. There are today a number of places where the amount of output that can be achieved depends heavily on the amount of trained labor which can be applied to the job, and in many cases these same points form critical constrictions in the entire war production program. It is difficult to overemphasize the seriousness of a report that in a recent month 8X percent of the available labor time in a large copper mine was lost forever through absenteeism. Moreover, as production schedules become more closely integrated, it is clearly evident that unnecessary absences of workers from their jobs will become a critical limiting factor throughout the war production effort. For practical reasons, absenteeism is usually defined as the absence of a worker during a full shift that he is scheduled to work. Employ ers frequently are able to tabulate the number of workers scheduled to appear on a given shift, the number which actually reported, and, by difference, the number absent. It is much more difficult to tabulate part-day absences, and there is, for example, no obvious line of demar cation between part-day absenteeism and tardiness. There is no statistical information available to indicate the general extent of absenteeism in the war industries. Scattered reports from 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Monthly Lahor Review—January 1943 a number of factories reflect rates ranging from between 2 and 3 per cent up to 15 percent and more. Reports from all shipyards in the United States, tabulated by the Bureau of Labor Statistics, show that in the month of November the absenteeism rate in that industry aver aged 8.7 percent. It is expected that reports indicating the extent of absenteeism in other war industries will be available in the near future. General Characteristics of Absenteeism Sufficient information is available, however, to indicate certain gen eral characteristics of absences in industry. It is established, for example, that absenteeism rates are generally higher for women than for men, even on jobs of the same general character. Consequently, it is to be expected that, as more women are drawn into the labor force, absenteeism rates may tend to increase. Greater sickness rates among women are probably a factor in their higher absence rates. The United States Public Health Service reports that in 1940 the frequency of sicknesses and nonindustrial injuries last ing 8 or more consecutive days was 153 per thousand for women as compared with 96 per thousand for men. The home responsibilities of many women in the labor force are without question an important factor. Many women industrially employed also carry the major part of the burden of running the home, and their actual working hours are thus not indicated by the time card in the factory. This extra strain probably leads to greater frequency of absences. It may also be observed that sickness among family members or children often means that the wife rather than the husband (where both are working), remains at home to provide care. One large war plant reports current absence rates at 4.8 percent for men and 7.4 percent for women. Another gives the percentages as 5.2 for men and 8.5 for women. These figures are typical of a number of reports. Figures from another plant are especially interesting in that they show absenteeism rates for men and women separately dur ing day and evening shifts. Whereas the rates for men and women on the day shift were 5.2 and 6.6 percent, respectively, corresponding figures for the evening shift were 5.4 and 5.7 percent. On each shift the rates for the women were higher than for the men, but on the evening shift the difference was only fractional. Moreover, the rate for women on the evening shift was lower than for women on the day shift whereas in the case of men the reverse was true. This suggests strongly that women who accept jobs on other than a day shift are likely to have fewer home responsibilities, or at any rate are more successful in carrying them along with an industrial job. A study undertaken by one company indicates that absenteeism tends to be higher among older workers, increasing rapidly after 40 or 50 years of age. As younger men are drawn into the armed forces and the average age of those remaining in industry increases, this factor may also contribute to an increase in general absenteeism rates. For obvious reasons, absenteeism tends to increase as the scheduled workweek becomes longer. The more time the worker spends on the job, the less free time he has to devote to personal affairs, and the more likely he is to take time off from his job. The physiological factor must also be considered. As hours are increased to the limit, the worker is under increasing nervous and physical strain. If the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Absenteeism in Relation to War Production limit of his endurance is approached, time off the job in which to recuperate becomes a physiological necessity. The accompanying table illustrates the effect on absenteeism of changing hours of work in a large war plant. This plant had been operating 6 days per week in most departments and 7 days per week in some. During the fifth pay period shown in the table, the plant reduced hours {so ¡that most departments operated 5 days per week and a few 6. At almost the same time certain attendance regulations were put into force. As a result of the combined effect of these two factors, absenteeism declined steadily in the following 3 months from around 7 percent to a low of 4.2 percent. At the end of the 3-month period hours were again increased, most departments going on a 6-day week. The attendance regulations were still in force, but within 2 months absenteeism had increased to a level of over 6 percent. \?afes of Absenteeism for Biweekly P ay Periods in a Large War Plant Percent of workers absent Pay period lst_ ___________ _______ _____ ___ 2d__________________________________ 3d___ ______________________________ 4th_______ _________________________ 5th______ _____ _____________________ 6th_______ ______ ___________________ 7th________ ________________________ 8 t h ...___ ___________________________ 9th_________________________________ 10th________________________________ 11th________________________________ 12th________________ _______________ 13th________________ ______ _________ 14th________________________________ 15th________________________________ Biweekly average Friday (pay day) 6.6 7.1 6.7 6.9 2 7.4 3 6.5 6.3 6.0 5.4 4.7 M.2 4.4 5.4 5.8 6.2 3.6 4.1 3.8 4.3 4.0 4.1 3.3 3.3 3.0 3.1 2.7 2.8 5 4.1 3.6 4.0 Friday (not pay day) 5.9 6.5 6.3 6.7 6.3 6.3 7.1 6.2 5.6 4.6 4.2 4.5 4.9 5.6 6.6 Monday Monday follow (following (not ing pay pay day) day) 7.9 9.2 10.2 10.8 11.4 9.1 8.4 8.8 8.1 6.9 6.6 5.4 6.6 «9.2 8.2 6.6 8.5 9.0 1 4.6 8.6 7.1 8.5 7.1 6.0 5.3 4.6 5.1 5.9 6.2 7.0 1 This Monday was a scheduled holiday, so double time was paid to those working. 2 Previous to this period, plant had been operating 6 days per week in most departments, 7 days in some. During this pay period, most departments were cut to a 5-day week, with a few operating 6 days. 3 Previous to this period, overtime pay had been given for Saturday and Sunday work without restriction. During this period, attendance regulations were put in force stipulating that an employee could not work on Saturday or Sunday, and so collect overtime pay, unless satisfactory account was given of all absences during the previous week. * During this pay period, most departments returned to'a'full'6-day workweek. 5 The day following was a holiday. 6 The preceding Saturday was a holiday. Absences on different days of the week show a marked pattern related to week ends and pay days. In general, absences are least frequent on pay days, and quite high on the day following pay day. Moreover, there is a tendency for absences to be numerous on days adjacent to a week end or holiday, independent of the pay-day effect. Since many plants pay on Fridays, these effects frequently combine to produce the lowest rate of the week on Friday, the highest on Saturday, and a relatively high rate on Monday. The data shown in the table are unusually interesting in that they permit separation of these effects, since this particular plant paid in biweekly periods. It will be observed that the Fridays which were pay days always showed rates substantially lower than the average for the biweekly period. As a matter of fact, the rates for pay days were remarkably stable and ranged in general between 3 and 4 percent. In contrast, Fridays https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 Monthly Labor Review—January 1943 which were not pay days showed rates near the biweekly average. Absence rates on Mondays following pay days were substantially higher than the biweekly average and also higher than the rate on Mondays not following pay days. On the latter days, however, absences were usually higher than the general average. A somewhat different situation was found in another large war plant. There the working schedule was arranged in such a way that one-seventh of the workers were supposed to be off every day. In such a situation it might be assumed that the week end as such would lose its significance, and only the pay-day effect would disturb an even pattern. The daily rates during a recent month were as follows: Sunday___________________________________ M onday______ ,_____________________________- - T uesday______________________________________ Wednesday (pay day)---------------------------------------T hursday_____________________________________ F riday________________________________________ Saturday______________________________________ 16. 0 8.2. 7. 8 6. 4 8. 5 8. 1 9- 0 Wednesday (pay day) was low for the week. The rate for Sunday, however, was about double the weekly average. This very high rate may have a religious significance, but it is probably also connected with the fact that Sunday is likely to be the day when friends and fam ily are free from work. There appears to be a tendency for evening and night shifts to have higher absenteeism rates than day shifts. The following rates on three shifts were observed in a large shipyard: First shift M onday __ _ Tuesday Wednesday _ T hursday. Friday (pay day) Saturday Weekly average Third shift Second. shift ______ ______ ______ ______ _ .______ ______ 7. 5 6. 4 5. 6 5. 3 4. 2 7. 7 8. 7. 6. 5. 4. 9. ______ 6. 1 6. 9 9. 7. 8. 6. 6. 12. 3 1 6 8 9 0 8 9 1 8 1 0 8. 4 On every day, rates were successively higher on the second and third shifts. The pattern of absences, however, remained substantially the same, with Friday (pay day) lowest and Saturday highest during the week. Efforts at control of absenteeism are effective in reducing the general level, but apparently do not alter this persistent weekly pattern. The following rates during a recent month were recorded in another large plant: M onday_______ Tuesday________ W ednesday____ T hursday______ Friday (pay day) S aturday______ 3. 3. 3. 3. 6 1 0 1 2. 6 4. 5 This particular plant had an elaborate absence-control system, and had reduced its general rates to a level substantially lower than other plants of similar character in the same area. Some plants keep separate records on absences by department. Where such data exist, there is usually considerable variation from https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Absenteeism in Relation to W ar Production 5 department to department. The figures would appear to indicate that accounting departments, tool cribs, offices, and supervision show lower rates than factory work generally. There is, however, no information to indicate whether absences tend to be relatively more frequent on routine as compared with nonroutine work or on heavy versus light work. Causes of Absenteeism In discussing the causes of absenteeism, a distinction should be made at the outset between voluntary and involuntary absences. In general, no statistical distinction is possible. In a few cases efforts have been made to determine the extent and causes of voluntary absenteeism by interviewing workers. But the validity of the results was questioned by the investigators themselves because of the dif ficulty of obtaining an objective statement of the reason for a voluntary absence, or for that matter, simply a statement that an absence was voluntary. However, companies with absence-control programs and careful records of time lost have not generally been able to reduce absenteeism below 2 to 3 percent. Some such level may perhaps be taken as a practical minimum, and everything over this regarded as probably preventable and so in a sense voluntary. The real characteristic distinguishing voluntary absenteeism is, of course, that it is under the control of the individual worker. There is no question but that the major cause of involuntary absence is sickness. Accordingly, the health programs sponsored by many companies for their workers are a direct attack on this source of lost time. Some employers require periodic physical examinations of their employees and so are able to employ preventive measures to reduce absences through illness. In some cases vitamin preparations and cold vaccines have been distributed free, or at cost, to reduce respira tory illnesses. The United States Public Health Service has made specific recommendations in certain industries to reduce special health hazards. For example, it has recommended that special “ change houses” be established for workers in the iron and steel industry who are exposed to high temperatures, so that they may change from perspiration-soaked clothing to dry clothing before leaving the plant. Community health and health services may influence absenteeism, especially as more women are brought into the labor force. For example, the health of young children is as important as that of their working mother, as far as her attendance at a job is concerned. Proper facilities for the care of children during the day, while parents are at work, will assist in reducing lost time from such causes. W orking conditions generally must be satisfactory if absences are to be held to a minimum. Reasonable hours of work and periodic days of rest contribute to reduction of absences from sickness. The recent statement of policy of a committee of Federal agencies headed by the Secretary of Labor, recommending that every worker be given at least 1 day off in every 7 and work not more than 48 hours in any 1 week except where absolutely necessary, was designed not only to maintain workers’ efficiency in the war period but also to reduce absences caused by sickness and nervous strain. Accident-prevention campaigns carried on by many companies help to reduce time lost from the job. Some employers have found that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Monthly Labor Review^-January 1943 accidents off the job cause more absences than industrial accidents, and have inaugurated programs to make workers safety-conscious off as well as on the job. There is a series of causes of absenteeism that lies on the borderline between the voluntary and involuntary, in that a reduction in absences is possible through the voluntary effort of the employee, but the conditions which lead to absence are to some extent outside his control. For example, a worker who is required continuously to work long hours may take time off on his own initiative, to relax and relieve physical or nervous fatigue. Such voluntary absence may take the place of involuntary absence, later, because of sickness or nervous exhaustion. The most satisfactory remedy in such a case lies not in an appeal to the worker but rather in a reduction of working hours below the limit imposed by his endurance. Housing shortages and transportation difficulties are in many cases related causes of absenteeism. Makeshift housing and overtaxed sanitary facilities in the vicinity of expanded war industries may lead to sickness, sometimes in epidemic proportions, and consequently to lost working time. The adequacy of housing accommodations in any area in which war factories are situated is thus a matter to be considered carefully in appraising general worker efficiency. Crowded housing facilities in war production areas usually imply long journeys to and from the job for many workers. In several areas, according to reports, substantial numbers of workers are com muting distances up to and in excess of 60 miles. The effect of this is to add 2, 3, or more hours to the employees’ workday. Both because of the added strain and because the worker has that much less time in which to attend to personal affairs, such conditions will lead to absences. Many of these workers traveling long distances depend on personally owned automobiles for transportation, and mechanical failures, poor tires, and the like are stated to be causes of absences, especially where public transportation is not available or is inadequate. In particular cases, much has been done by employers themselves to ease transportation difficulties. Many companies have, of course, sponsored car-pooling arrangements. In many places, working shifts in the same plant and in neighboring plants have been staggered to ease peak demands on overloaded public transportation systems. Some firms have purchased and operate busses for workers where other transportation is inadequate. A more ambitious step in this direction has been taken by a shipbuilding company at Houston, Tex. It is renovating 42 railroad cars purchased from the defunct New York, Westchester, & Boston Railroad. These cars will be used to carry workers the 15 miles from Houston to the isolated shipyards. Some war plants in areas where housing facilities are inadequate have reported that week-end absences are frequent among men, who use this opportunity for visiting their families which cannot bo housed in the neighborhood. Men are also reported to be absent frequently in efforts to find living quarters for their families. Inadequacies in community facilities contribute to lost time in still other ways. As more women are brought into the labor force, there are more families in which all adult members are expected to work 6 days per week. Where this is the case, it is important that shopping facilities be available for workers in the hours when they https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Absenteeism in Relation to War Production 7 are off duty. In some cities the local merchants’ associations have arranged to see that the stores stay open at least one night each week for the convenience of workers on day shifts. A different approach to this problem has been reported in England, where non working women have assumed the responsibility of shopping for neighbors who have accepted war jobs. It is reported that in some areas workers have had difficulty in obtaining the professional services of doctors, dentists, and lawyers, except during working hours. The cooperation of local professional societies has been obtained in some cases to make such services available to war workers during their regular time off duty. Some sources of absenteeism not easily classified have been reported by employers. Many of the workers now in industry have not had previous industrial experience and so have never formed regular attendance habits. In some cases new workers have accepted a job with the intention of trying it out and without the necessity of depending on it for a livelihood. Attendance of such workers has in some cases been spasmodic. A certain amount of absenteeism may be mistakenly reported by employers where workers quit their jobs without notice; such workers may be carried as absent on the company records for periods ranging from 3 days to as long as 2 weeks. An important factor in purely voluntary absenteeism is the morale of the worker. If he regards his work as simply another job, he is more likely to take time off for purely personal reasons than if he feels that his work represents a real contribution to national security. For this reason, programs informing workers of the uses to which their products have been put by our armed forces probably assist in reducing time lost through absences. A feeling of personal partici pation is also conducive to better morale. It is probable that the employee-suggestion programs, scrap drives, war bond and stamp campaigns and other activities in which employees can join, either directly or through their unions or labor-management committees, contribute a psychological lift to morale that should be added to the more tangible benefits realized. Employers who have been asked the reason for voluntary absences have most frequently given as a major reason the high wages paid in many war plants. At an earlier date, in industries where 7-day operation was the rule, payment of overtime for Saturday and Sunday work as such was criticized widely. It was believed that this practice encouraged workers to take time off in the early part of the week and use Saturday and Sunday work to bolster their earnings with overtime pay. The President’s directive ending this practice was issued with the object of reducing the absenteeism which the practice might enourage and at the same time of discouraging excessive hours of work for any individual worker by permitting time and a half for the sixth consecutive day of work and double time for the seventh. The statement that high wages as such are a major contributing .cause to absenteeism requires some qualification. If followed to its logical end, this idea would lead to the conclusion that the best way to keep workers on the job would be to make the rate of pay so low that any absence would necessarily be followed by financial hardship. In a similar vein, higher taxes and the war-bond campaign might be considered as contributing to absence control. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 Monthly Labor Review—January 1943 It is true that many of the workers now employed in war industries previously earned substantially less than at present. Despite increased living costs, there are certainly many workers who can take time off and still maintain a standard of living higher than they had previously enjoyed. Simply put, with adequate earnings there is a point beyond which a worker places a higher value on the use of his time for his own purposes than on additional earnings, provided no other factors are to be considered. Control of Voluntary Absenteeism Since the designation of high wages as a cause of voluntary absentee ism would seem to lead to no practical method of reducing absences, other considerations must be examined. That the problem is not insoluble has been demonstrated by companies which have cut absenteeism to reasonable proportions through absence-control programs. The successful programs seem to have two necessary and coordinate stages. First, the worker must be informed that there is definite disapproval of voluntary absenteeism. This is not limited to disapproval by the employer; the disapproval of his country and his fellow workers are also effective deterrents. Second, the worker must be made aware that his absence does not pass unnoticed. In many war plants today the worker is not required to account in any way for absences. It is no negligible contribution to absence control if the worker knows not only that his pay envelope will be lighter and his conscience heavier, but also that he must account to another person if he takes time away from his job for some purely selfish reason. The extent to which the Federal Government can assist in absence control is limited. Workers are informed of the unpatriotic aspects of voluntary absences from war jobs by speakers in war plants, posters, radio programs, and through the labor-management committees formed under the war production drive. The absentee is told through these media that his absences directly help the enemy, and that when he is away from his job he personally fails to meet a responsibility to the men in the armed services. Absences among men subject to the draft may be discouraged by the policy of not giving occupational deferment to habitual absentees. In Great Britain the attitude of the Government is emphasized by fines and jail sentences meted out to those habitually absent from their work. Individual companies have responded to the absence-control problem more directly and in almost infinite variety. An elaborate system used by one company requires any worker absent less than 3 days to fill in and sign a slip describing the reason for his absence on returning to work. These slips are kept in an alphabetical file, and if the worker accumulates more than a certain number he is interviewed by a member of an absence-control unit. If the reasons adve need are legitimate, an effort is made to help the worker remove the cause of the absences; otherwise, the worker is warned. A habitual ab sentee is placed on probation; repeated absences bring dismissal. Workers absent 3 days or more are required to report to the absencecontrol unit before returning to work. Occasional checks on em ployees reported as sick are made by visiting nurses employed by the company. The plan has been effective, since the absence rates reported were lower in this plant than in any similar plant in the same area. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Absenteeism in Relation to War Production 9 A less detailed plan, which nevertheless keeps voluntary absences at relatively low levels, is reported by another company. Shortly after the beginning of each shift, all time cards which have not been punched in are taken from the racks. These are distributed to the foremen of the various departments. In order to report for work, therefore, an employee who has been absent or tardy has to go to his foreman to obtain his time card. Some establishments keep records of absences by departments, crafts, or shifts, and post the current rates regularly on bulletin boards. A number of plants award banners to groups with good records. The intent of such programs is, of course, to enlist the aid of the absentee’s fellow workers to keep him on the job. Some plants award special bonuses or prizes periodically, but specify that workers must have perfect attendance records during the period to qualify for such awards. Various methods are used to single out the absentee. Some establishments post the names of all absentees on bulletin boards. Others put red or yellow stickers on the time cards of absentees, re quire that absentees get their pay at special tables (“ Hitler’s Pay Table”), or put facsimile German marks in the absentee’s pay enve lopes together with a pretended note of thanks from the German Government. All such extreme methods should probably be used only with considerable care, since they are likely to arouse no little resentment in a worker who feels justified in being absent. Careless resort to them may make the absence-control question seem one simply of employer-employee relations, and in the present emergency it has far broader implications. Disapproval by fellow workers is a strong influence for control of time lost through absences, and there are many ways in which it may be effectively focused. In a number of plants, the labor members of the labor-mapagement committees have accepted the responsibility of interviewing absentees. In some cases, unions have discussed absenteeism at meetings and have sponsored programs to control it. One union is reported to have suspended the privileges of members dismissed from a war plant for habitual absenteeism and to have placed them on the inactive list. In one plant, a shop committee composed of men with sons or brothers in the services interviews absentees. Absenteeism differs somewhat from many other manpower prob lems. The participation of the Federal Government is probably needed for the satisfactory resolution of such questions as labor sup ply, migration, labor turn-over, wage stabilization, Selective Service policy, recruitment of women, training of new workers, housing for war workers, and the like. The most effective contribution to the reduction of absenteeism, on the other hand, can be made by the cooperative effort of management and workers in each war plant. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ANPOW ER CONTROL IN GERM ANY B y H e r b e r t B l o c k , New School for Social Research1 Summary DURING the past decade the German labor market has run a course from mass unemployment, through a growing lack of skilled workers, to a general shortage of labor. Correspondingly, in the governmental regulation of the labor market, three periods can be distinguished. In the first period—1933 and 1934—the measures were directed toward reducing the number of persons on the labor market by the placing of Government orders and the carrying out of public works, by the with drawal of women and older workers, by the absorption of youth and others into the military forces, and by the shortening of working hours. Even at that time the labor administration was strengthened for the task of providing labor for rearmament, and these authorizations were successively extended during the subsequent years. In the second period—1935 and 1936—when lack of skilled labor first began to be evident, skilled workers were forbidden to emigrate, nonessential industries were prohibited from hiring skilled workers, skilled laborers were compelled to return to their trades if busy in activities other than those for which they were trained, and the training and retraining of workers was promoted. In the third period, beginning in 1937, the Government measures have been directed against a labor shortage— general throughout the country—and have involved the intensification of earlier measures, the most minute examination of industry’s labor needs and the searching out of all possible sources of labor, with absolute control of hiring, firing, and transfers vested in the Govern ment. The present article examines the various measures and their results, together with the machinery of control. First Period: The Struggle Against M ass Unemployment During the first 2 years the labor policy of the Third Reich con centrated in the fight against unemployment, but the policy adopted during the great depression was, in fact, the prelude to the total regimentation of labor. The administration of the labor market was increasingly concen trated in the National Bureau for Placement and Unemployment Insurance, a public agency which is represented throughout Germany by 13 regional and several hundred local employment offices. The Decree Concerning the Allotment of Labor, of August 10, 1934, gave the head of the National Bureau the exclusive right to allocate workers, and all other agencies, governmental or party, were prohibited from any interference. The more important measures against unemployment undertaken at that time may be summarized as follows: Although public works, mostly of a military character, were carried out on a large scale, Government orders formed the predominant means of reemployment. The Government favored, as far as possible, 1 This article is the summary of a report prepared in connection with the Research Project on Social and Economic Controls in Germany and Russia, organized under the Graduate Faculty of the New School for Social Research. 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manpower Control in Germany 11 regions and sections of production with a high unemployment ratio. The same principle was enunciated in later years when full employ ment was approached in certain sections and districts. At no time, however, could this policy be pursued systematically, since the char acter and distribution of the Government contracts were determined primarily by military considerations. Considerable numbers of unemployed were absorbed by inducing or even compelling employers to hire workers beyond the limit of their actual requirements. Similar pressure was exerted, mainly by local party leaders, to prevent employers from dismissing workers. In other cases the compulsion was directed against labor itself. Thus, the mobility of the rural population was limited in order to pre vent a further increase in the number of unemployed in the towns. These restrictions, however, were annulled a few years later. Though sparingly applied, the mere existence of these rules had given youth a distaste for farming. Moreover, by the end of 1936, the armament industries sorely needed workers from the agricultural sector. The measures just mentioned were devised to tie workers to their plants or at'least to their trades. An order of August 28, 1934, pre scribed, on the other hand, an exchange of workers. It required single persons under 25 years to give up their jobs in favor of older workmen. Persons under 25 years could henceforth be hired only with the con sent of the Employment Office. Apprentices were exempted, in ex pectation of labor shortages, in order to secure “ the indispensable amount of duly skilled labor.” Workers thus displaced were officially directed into agricultural work and domestic service; in reality a considerable part of the male youth affected by the order was recruited by military or semimilitary organizations. This transfer of unemployed or even of employed workm.en into the armed forces and other organizations for military education belongs to a group of measures all of which aimed at decreasing unemployment by reducing the supply in the private labor market. For the same reasons women were induced in 1933-34 to give up their jobs. Old people were asked to retire, Jews were discharged, foreigners were returned to their countries, etc. Finally, shorter working hours were prescribed in the textile in dustry and in several cases the use of labor-saving machinery was curbed. Second Period: The Struggle Against the Shortage of Skilled Labor By 1934 the number of unemployed had fallen from the depression maximum of 6 to 7 millions to an average of 2,700,000 persons. In 1935 unemployment, with an average of over 2 million persons, was still considerable. But at the end of 1934, a lack of skilled labor first became apparent. At that time the weapons were forged which were utilized in the spring of 1935 with the réintroduction of compulsory military training by the law of March 16, 1935. In demand were, above all, metalworkers, building workers, miners, and skilled and unskilled agricultural workers. The National Placement Bureau was strengthened for the task of providing labor necessary for rearmament, by a law of November 5, 1935, which gave it “in principle, the exclusive right of carrying on employment service work.” Even more important was the Law Con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 Monthly Labor Review—January 1943 cerning the Introduction of a Labor Book, of February 26, 1935. This law was extended by numerous decrees in subsequent years; to day it covers nearly all gainfully occupied persons in Germany. “In order to guarantee an appropriate distribution of labor in the German economy/’ all workers and employees (and also, since a short time ago, independent persons and dependents working for the head of a family) must apply at the employment offices for a labor book. This identifies the bearer and contains information on his professional edu cation,2former jobs and, finally, details about every position held since the issuance of the book, as for instance, the place and kind of occupa tion and beginning and end of each job. No entries may be made con cerning wages or behavior and efficiency, nor any special marks. Nobody without a labor book can get a job. Changes of residence, family status, or job, participation in training courses, etc., must be made known immediately to the employment office so that it can keep its card index up to date. Besides investing the administration with new powers, the Govern ment adopted a number of measures to deal with the growing shortage of skilled labor. ^ Thus, it began to retain skilled workers within the country, forbidding their emigration except in the German interest. It even compelled German skilled workers to return from abroad. As already mentioned, agricultural workers—skilled or unskilled—were required to stay in that calling. In contrast to 1933-34, old workers were induced not to retire; they were kept, if not in the same jobs, at least in their usual trades. At the same time, retired skilled workers were returned to the factories. Other measures aimed to prevent the transfer of skilled workers from essential to nonessential plants. On November 7, 1936, Goering issued a series of “Decrees to Carry Out the Four-Year Plan.” The second of these decrees, which was soon extended by a decree of February 11, 1937, was designed “to safeguard the requirement of metal workers in essential plants of the steel industry.” Any steel or metal plant desiring to increase its staff had to have the consent of the em ployment office. Consent could be refused when contracts were not essential for the rearmament program. These regulations applied not only to skilled and unskilled metalworkers, but also to foremen, technicians, engineers, etc. A similar decree was issued on October 6'! 1937, “concerning the allocation of masons and carpenters. . These regulations forbade the transfer of skilled workers from essen tial to nonessential plants. Other decrees enforced the transfer from nonessential to essential activities. The third in the series of decrees of November 7, 1936, prescribed “the return of metalworkers and skilled building workers to their trades.” Entrepreneurs who engaged metalworkers and skilled building-trades workers for more than 2 weeks, in activities other than those for wlich they were trained and which were registered in their labor books, were required to report immediately to the employment office. The office must then strive to place the workers in jobs corresponding to their training, either in the same enterprise or in another. Such regulations were difficult to enforce. As late as 1941 an expert wrote that “when plants are in spected, some skilled workers, even metalworkers, are always discovered who are not working according to their vocational education.” 3 2 1. e., details as to place and duration of apprenticeship, training at a vocational school, other training knowledge of farming, special abilities, possession of a driver’s license or pilot’s license, etc. 3 Frankfurter Zeitung, May 18, 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manpower Control in Germany 13 A series of measures aimed at promoting the training of young workers. Significantly, the very first of Goering’s decrees of Novem ber 7,1936, was concerned with the training of young people. It com pelled steel and metalworking plants to train an adequate number of apprentices. The National Placement Bureau determines how many apprentices are considered adequate. “Entrepreneurs who, for per sonal or technical reasons are not able to engage the necessary number of apprentices, must pay a fee to the National Bureau.” According to the statistics of the employment offices, 88,788 young people en tered the steel industry as apprentices in 1935-36; influenced by the employment offices, in 1938-39 this number rose to 156,556, or almost one-third of all the young men leaving school that year. Extraordinary efforts were made to train unskilled workers or to fit skilled workers for armament work. These efforts met with con siderable success. Third Period: The Struggle Against the General Labor Shortage At the end of September 1937, at the peak of the season, the number of unemployed declined to 469,000. Of these, only two-thirds, 312,000 persons, were “completely fit for work,” and 71,000 were “completely fit for work and for being sent to new districts” (voll einsatz- und ausgleichsfähig) .4 Unemployment was almost at the vanishing point. As the armed forces and armament production steadily increased, labor became generally short. Beginning with 1937-38, not only skilled but also unskilled workers were lacking, and many skilled work ers were no longer able to function with complete efficiency, owing to lack of sufficient assistance from auxiliary workers. Even in the preceding years the power of the National Placement Bureau had grown considerably. Labor had been subjected increas ingly not only to general rules but also to individual control. Hence forth regulation of the labor market became “total.” Several important laws were the basis of labor-market policy in this third period: On March 1, 1938, a decree ordered all young persons leaving school to register at the employment office. Since then the consent of the employment office has been indispensable when an apprentice, a student employee, or an “ improver” is to be hired (as mentioned above, the Order on the Allotment of Labor of August 28, 1934, excepted the hiring of apprentices from the control of the employment offices). Thus began the total vocational guidance of young persons. The National Bureau established its first “ plan for the distribution of young persons” in 1938 and applied it to those leaving school in 1939. Similar plans were made for subsequent years. Since then there has been no question of free choice of vocation. The Frank furter Zeitung explains the situation as follows: “ Much importance is attached to spontaneity and self-determination of young people and their parents; the employment office, however, is authorized to bar a young man from a given vocation, while leaving him a choice among others.” 5 <Since the end of 1936 the National Bureau has divided the unemployed into three categories: Those com pletely fit for work in their trade, those completely fit for work otherwise, and those not completely fit for work. The first two categories are subdivided into those capable of being sent to new districts {Ausgleichsfähige), and those not thus capable. * Frankfurter Zeitung, November 5,1941. 5 0 1 1 5 2 — 43------- 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 Monthly Labor Review—January 1943 On June 22, 1938, the Decree Securing Labor for Projects of Great Political Importance introduced compulsory service 6 for all Germans. Every German could be recruited temporarily for a labor service, during which any previous contract would be suspended. The title and date of this decree indicate that it was issued with a view to the construction of the Siegfried Line and similar enterprises; 400,000 compulsory laborers are said to have toiled at the fortifications in western Germany. On February 13, 1939, the compulsory-service decree was replaced by a decree bearing the same name but having wider scope. The first section of this new decree regulated compulsory service. Em ployment offices were empowered to recruit residents of the Reich “ for jobs which the Commissariat for the Four-Year Plan singles out as very important and urgent. The dismissal of workers may be imposed upon private and public enterprises and administrations.” Thus compulsory service was extended to all residents of the Reich, aliens as well as nationals. Furthermore, under the provisions of the decree all could be drafted for an unlimited period, with the con sequence that in such cases the contract between the workman and his employer is terminated by law. According to a circular of the Reich Minister of Labor, however, compulsory service which is im posed “ for the duration” or “ pending further instructions” is to be regarded as “ temporary.” 7 Finally, the provision quoted above established the legal basis for the “ combing out” of enterprises. At the time when the compulsory service was extended, the Govern ment limited the right to terminate employment and introduced new restrictions on hiring. These regulations are not enlarged upon here, as they were replaced by even more comprehensive ones after the beginning of the war. At any rate, long before the attack on Poland, German labor-market policy was prepared for war. The outbreak of hostilities, therefore, caused not a decisive change but rather the extension of existing regulations and authorizations. A Decree to Restrict Change of Employment, of September 1, 1939, brought legislation on this subject to a climax. Since then, any hiring re quires the consent of the employment office, except for agriculture and mining and households with children under 14 years. Further more, no employer or employee has the right to give notice until the employment office has consented to termination of employment. Permission must be obtained before notice is given, for “the mere intention of giving notice * * * disturbs work.”8 Permission, however, is not necessary when both parties agree to annul a contract. Of this gap in the regulations, as will be seen, labor and business have both taken advantage. Finally, the decree of September 1, 1939, orders any employee who quits his employment without official consent, to report immediately to the competent employment office, which will try to place him in an essential plant.9 8 Compulsory service (Dienstpflicht) should not be confused with emergency compulsory service (Notdienstpflicht) introduced by a decree of October 15, 1938. All residents of the Reich may be temporarily recruited by the authorities “for the fulfillment of public duties,” such as removing street debris after air raids. Emergency compulsory^service apparently plays no part in production. 7 The author discusses the frictions resulting from compulsory service in the winter (1942) issue of the Harvard Business Review. 8 Statement of Direktor Timm, in Reichsarbeitsblatt, 1939, No. 9, Nichtamtlicher Teil, p. 109. * According to a decree of theReich Minister of Labor of January 24,1941, employment offices must examine each person changing his job as to whether he is capable of metalwork. It has been found, for instance, that hairdressers are easily fitted to become precision-instrument workers, and that bakers, accustomed to great heat, become able molders and welders. (Der Vierjahresplan, 1939, p. 868.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Majipower Control in Germany 15 The authorities originally expected that after the outbreak of the war the cutting down of raw-material allocations would result in the dismissal of skilled labor by civilian-goods industries using metals. This assumption proved to be wrong. Companies which had to restrict their peacetime production were preparing for war contracts and, therefore, did not dismiss but “ hoarded” their workmen. Con sequently, the rising demand for labor on the part of armament plants found no supply available. Goering issued, on September 28, 1939, a decree compelling employers to report to the employment offices all skilled workers whom they could possibly spare. Skilled workers were to be surrendered even if only temporarily idle. If they were removed for compulsory service, the condition could be added that they would return to their previous employer in case of need. This decree, however, being very difficult to enforce, did not contribute much to shifting labor from nonessential to essential plants. THE "COMBING OUT” DRIVES Labor was shifted mainly not by general rules but by individual redirection, using three methods: First, as the employment office must consent to the hiring and as every employee leaving a job without previous permission must register at the employment office, all persons entering the labor market are at the disposal of the administration and can be recruited for the most important job at hand. Second, employment offices constantly reexamine their card indexes based on the labor books. As soon as they discover a case of bad place ment, they endeavor to redirect the worker. Should employee or employer be obstinate, they invoke the compulsory-service decree. The number of persons on a compulsory-service basis is relatively small, however, for the labor administration has sufficient means of obtaining the consent of the interested party when it wants to redirect workers. Finally, enterprises are systematically examined by special commissions in order to strip civilian-goods industries of workmen and shift them to armament production. The first drive was made by commissions of the employment offices in the fall of 1939. It fell off as early as the end of 1939, when “results * * * became more and more scanty. Inspections of many days resulted only in combing out some dozens of workmen.” 10 In the spring of 1940, a new offensive was started—“ the closing-down drive” {Stillegungsaktion). The authorities thought they would get more workers by closing nonessential plants than by the most careful comb ing out. This drive failed. The factories had already been combed out to such a degree that their closing would not have yielded many workers completely fit for work and for being sent to new districts. Under these circumstances, it was considered preferable to comb the factories again, while allowing them to continue with the rest of their workers in the interest of civilian supply. Nevertheless, 480,000 persons are said to have been combed out in 1940.11 In 1941 the civilian-goods industries were again attacked, this time under the slogan of “reallocation” {Umsetzung). One may wonder how every new drive could produce some results, although the pre10 Technik und Wirtschaft, March 1941: Die Beschaffung von Arbeitskräften für die Rüstungsindustrie, by Karl Pechartschek. a Der deutsche Volkswirt, M ay 30,1941, p. 1254. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 Monthly Labor Review—January 1943 ceding ones seemed to have exhausted all possibilities. As a matter of fact, the concept of nonessential production was constantly broad ened, the standard of fitness for work lowered, and the requirements of factories more and more disregarded. At the beginning, consumergoods industries were left with some mechanics, drivers, etc.; now these almost indispensable men have been taken away, and it is easy to understand a German statement that the mere phrase, “ combing out,” causes every entrepreneur without war contracts to shudder.12 The original plans of economic mobilization provided for the most far-reaching concentration of industrial production and for the whole sale closing down of less-efficient plants. However, except for a few lines of production (such as soap, margarine, and shoes) and some individual cases, these far-reaching plans were abandoned. The decision to continue or close was left to the owners. Today, many consumer-goods factories are working only with women and old or sick men. Their raw-materials allocations are, as a rule, very re stricted. Yet only a few owners have decided to close their plants. The Frankfurter Zeitung termed “ one of the most amazing phenomena of our war economy” the capacity to improvise in sections not regarded as essential to the war effort. The “small enterprise with old workers” still plays an important part in certain consumer-goods industries.lb Only in 1942, when the labor shortage became particularly acute, was concentration of production pushed vigorously in a number of industries, especially textiles, chemicals, and tobacco. Various forms of organizations were used for this purpose, such as the so-called “ Reich Associations” which organize and rationalize entire industrial branches, partly utilizing, partly replacing the cartels, and the “ Pro duction Rings,” officially promoted combinations of various enter prises which concentrate their production in the most efficient plants. About the same time important changes in governmental organiza tion took place; in this connection should be mentioned the appoint ment of a General Commissioner of Manpower in March 1942. This commissioner, Sauckel, is a prominent party leader and since then the National Socialist Party has been in control of the labor administra tion, apparently because it is supposed to have a stronger grip on the people than has the Government bureaucracy. Procedure of Labor Relocation ORGANIZATION When an enterprise asks for additional workers, the employment office must investigate as to whether important contracts justify this demand and whether (even conceding the urgency of the contracts) labor might not be saved. At the same time, the employment office must, with the help of a card index of enterprises, investigate whether factories can spare some of their workers. As part of their routine, employment offices study advertising material. “ If advertisements of an enterprise suggest that it has free capacity, the employment office must draw the necessary conclusions,” states a circular of the President of the Advertisement Council of the German Economy who had received complaints about employment-office procedure.14 12 Der deutsche Volkswirt, December 13, 1940, p. 416. 13 Frankfurter Zeitung, June 15,1941. 14 Reichsarbeitsblatt, 1940, No. 35-36, 1 p. 631. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manpower Control in Germany 17 Extensive investigations as to whether factories need additional workers and, especially as to whether they can give up some workers, are made by the commissions previously mentioned. It goes without saying that these commissions deal only with large and middlesized concerns. Small firms are inspected by officials of the employ ment offices or are combed out, under the supervision of the labor administration, by the appropriate corporate organization. The composition and activities of the commissions have changed in the course of years. Since 1941 they have been organized as follows: For special investigations on a large scale, there are Reich commissions of representatives of the Ministry of Labor and other central author ities. They inspect the largest plants or deal with the general problems of whole districts. For all large and medium-sized companies, investi gations have been decentralized to military districts (Wehrkreise). As a rule, the commissions for the military districts are presided over, not by an official of the labor administration, but by the competent representative of the Reich Minister for Armament and Ammuni tions. When the late Reich Minister Todt formed his Ministry, he had no extensive organization, but simply appointed representatives for each military district. The foremost duty of these representa tives has been to promote cooperation between business and the various authorities. They, therefore, are well suited for taking a leading position in commissions formed by numerous agencies. Combingout commissions are composed, aside from the representative of the Armament Minister, of the president of the regional employment office, the leader of the regional economic office (the Landeswirtschaftsamt is the regional agency of the Reich Ministry of Economic Affairs), the military inspector, and the regional representative of the Commissariat for the Construction Industry. The real work is done by subcommissions, the so-called “Todt com missions” which are competent for single employment-office districts. These subcommissions consist of members of the employment office, of the military authorities (Rüstungskommando) and of the Chamber of Industry and Commerce.15 Occasionally factory inspectors are invited to take part in the investigations and sometimes also members of the German Labor Front, the mining authorities, or the Agricul tural Estate. In some cases, special commissions have been organized for special lines of production. Business, incidentally, lias complained about being inspected simultaneously by various commissions which had no knowledge of each other. The commission form was determined by various factors. Only close cooperation with the authorities acting as contractors enables the labor administration to know immediately which firms need work ers and which are less occupied and may spare workers. This cooper ation also makes it easier to see to it that no Government orders are placed without regard to labor capacity, thereby avoiding unnecessary shifting of workers. The commissions, furthermore, reduce con flicts of jurisdiction. As all interested agencies are represented in the commission and join in the decisions, it is rather difficult later to play oik' off against another. _ • Cooperation of agencies through commissions, incidentally, is found not only in labor-market policy but throughout the German war 18 Overorganization is being eliminated in the so-called“business self-administration,” and in t.V's process the Chambers of Commerce are being reorganized under the name of Regional Business < ambers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IB Monthly Labor Review—January 1943 economy. The distribution of contracts, labor, materials, means of transportation, etc., is coordinated by commissions, or at least by direct contact between agency and agency. “Today,” stated the Frankfurter Zeitung of December 7, 1941, “the qualification of each Government official depends to a high degree on his capacity to keep in touch with officials of other agencies.” The principles of leadership and centralism have been abandoned in the war economy in favor of collegiate action and decentralization. If an enterprise is to be inspected by a commission (all companies have been inspected once or several times during recent years) it is visited by a “Pre-examiner” (Vorpriifer). This person is an employee of the employment office, who gathers the necessary statistical infor mation concerning sales, contracts, workers, working hours, training, etc. It is one of the duties of the pre-examiner to extract from the labor books a list of all skilled workers, showing also whether they are working in their proper field or in semiskilled or unskilled jobs.^ The commission itself, as a rule, inspects plants thoroughly, interviewing managers, foremen, and workers. After such an investigation it is the duty of the employment office to carry out the commission’s decisions, i. e., to allocate new workers, comb out, or leave the situation unchanged. CRITERIA OF THE COMMISSIONS The commissions examine enterprises from the following points of view: (1) The development of the employed workers is compared with the development of sales (or, rather, as orders of the same value may require a different amount of labor, with the working hours as esti mated in the contracts). This comparison may indicate that the enterprise has hoarded workers. (In some cases sales declined by more than 50 percent, whereas the number of workers was only slightly reduced.) In such cases the plants are combed out, unless plausible explanations can be given, as for instance, extensive prepa rations for future production requiring considerable numbers of work ers, especially of skilled workers; transition from assembly-line to piece production; increase of stocks for important reasons; numerous cases of illness; declining efficiency of workers owing to bad traffic conditions, black-outs, etc. (2) Contracts are thoroughly studied. Summary descriptions of contracts as being [for [war^purposes, export, vital for civilian con sumption or the like are not regarded as sufficient. The commission examines all large contracts, seeking evidence of exaggeration as to urgency. In enterprises producing raw materials or semifinished goods, lengthy investigations as to the future use of products are often necessary in order to judge urgency. Terms of delivery are, of course, taken into consideration, for the list of contracts regularly includes orders temporarily requiring no labor, since arrangements have not yet been made for them. Others, almost completed, may require maintenance of staff for only a short time. (3) The commission investigates whether an enterprise lightens its labor load by farming out its work, especially to plants in occupied countries.16 Generally the labor administration opposes the practice by large companies, of accepting orders beyond their working capacity w See Social Research, February 1942: Subcontracting in German Oefense^Lpdustries, by Herbert Block. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manpower Control in Germany 19 and demanding that smaller enterprises be stripped of skilled labor, if necessary by compulsory service. The administration recommends in such cases the placing of orders with small enterprises, at least as subcontractors. (4) The commission investigates whether the company has hired a s u ffic ie n t number of women. The percentage of women employed is compared by periods; these statistics indicate whether the manage ment made sufficient efforts to replace men by women. The com bined pressure thus exerted on the managers and on the women them selves had operated to such effect, according to a German author, that by the summer of 1941 the reserve of women’s labor was already exhausted. “Today, out of 100 persons gainfully employed, 60 are men, 40 are women. ,'VThis relation is biologically not justifiable once the war is over.”17 (5) Special attention is given to the management’s efforts to train and retrain workers. This aspect is decisive in determining the final judgment of the commission. (6) The commission investigates whether skilled workers are in proper jobs, whether they are sufficiently assisted by auxiliary work ers, whether the flow of labor is well arranged, and whether places of work are appropriate. “Every plant,” states a member of the labor administration, “must now be asked to utilize its skilled labor as well as possible, with the help of the labor books. The labor books, with their valuable information about the vocational capacities and ex perience of their holders will then be for the enterprise what they should long since have been, that is, an indispensable means of putting the right man in the right place.”18 If an enterprise asks for skilled workers, the total number of workers requested is compared with the number of skilled workers employed; often management has made disproportionate demands in expectation of curtailment of its request. (7) The commission closely examines labor policy. Does the management leave hiring altogether to the employment office or does it endeavor to get workers by advertisement, posters in the plant, summoning relatives of employees, etc.? The labor administration frowns upon companies “which ‘order’ perfect laborers at the employ ment office; certain firms even want to rely entirely on the employment office; by threatening official contractors with missing a delivery date, they cause them to intervene in favor of their labor requirements. This attitude really endangers armament production.”19 Other matters of labor policy that are considered^are: Is the number of requests for deferment of drafted workers normal? Too many re quests will lead the administration to feel that the entrepreneur is taking the line of least resistance in solving his labor problems and will result in a combing out of his force. For what reasons have workers been dismissed? In how many cases did they quit “by mutual agree ment,” thereby evading the control of the employment office? In some cases more than 80 percent of all separations were by “mutual understanding, thus depriving the restrictions on change of employ ment of their effect.”20 Are women the first to be dismissed when « Deutsche Allgemeine Zeitung, August 24,1941: Die Menschenbilanz, by Joseph Winschuh. is Reichsarbeitsblatt, 1940, No- 4, Nichtamtlicher Teil, pp. 55 et seq.: Betriebsnaher Aroeitseinsatz, by H. Hildebrandt. ^ » Reichsarbeitsblatt, 1940, No. 4, Nichtamtlicher Tell, p. 55. 20 A decree of May 20, 1942, closes this loophole in the regulations; since then, employment in essential plants can be terminated only by the employment offices. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 Monthly Labor Review—January 1943 orders diminish? Are the sick carefully checked? In view of the long working hours, many workers simulate illness in order to get leave. How is the general plant discipline? What about social institutions, such as canteens? (8) The commission also studies the hours of work. According to the official point of view a company on a 48-hour-a-week basis, without three shifts, must lengthen the working day unless there are special hindrances such as necessity of long travel by workers. (9) Finally, the plant machinery is examined. Is it modern or obsolescent? Are machines fully utilized? Are modern instruments used for measuring and testing, in order to save skilled labor? As a rule, a company seeking additional workers is urged by the employment office to rationalize, i. e., to introduce labor-saving machinery and to improve plant organization. Labor-saving machinery was widely urged in the immediate pre-war years, in contrast to the first years of the regime, that were marked by the struggle against unemployment, when the spirit of the machine wreckers had spread throughout Germany. Der deutsche Volkswirt reported on May 19, 1939, a record production of labor-saving machinery which, considering the comparatively low level of wages, often hardly pays. Today, of course, it is difficult to get new machines and so the possibilities of rationalization are limited. These are the questions with which the commissions deal. The enter prises are to be troubled as little as possible, but the list of questions considered shows that the minimum requirements of investigations are quite comprehensive. Results of the System MILITARY NECESSITY AND NATIONAL SOCIALIST IDEALS From the very first, the National Socialist Government began to prepare the labor administration for its war duties. In the early years of the regime, the Nazis seemingly aimed at nothing in this field but to do away with unemployment. The work to which the unemployed were put was, however, mainly of a military nature and the authori zations given the National Placement Bureau were destined to safe guard labor needs of the armament industries. When unemployment gave way to a shortage of labor, the military character of German labor-market policy became more and more obvious. This was indi cated by the introduction of the labor book and the card index of labor books which enable the National Bureau to judge the usefulness of each German within the framework of a war economy, by the measures concentrating workers in armament production, and by the early training of millions of workers. Not only the rights and liberties of citizens but even the “unchange able ideals” of the Hitler movement were sacrificed to preparation for war. The Nazis had praised the peasants as the “blood source of the nation.” Their slogan was: “Back to the land.” In reality, not less than 16 percent of all (male) farmers and rural workers moved to towns between 1933 and 1939 and were replaced by foreigners who, according to National Socialist doctrine, are of inferior race. The middle class was promised “complete reconstruction,” and handicrafts were assured of “a new heyday.” In reality, small business was decimated and re https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Manpower Control in Germany 21 duced to a reserve for industrial workers. German women were to devote themselves to kitchen and children (.Kiiche und Kinder), but in reality, they have been put to work in factories. CENTRALISM AND DECEN TR A LISM As explained above, the preparation of the labor market for war was connected with increasing centralization of the labor adminis tration. The National Bureau was given the exclusive right to supply business with labor; youth was induced to choose vocations essential to economic warfare; each worker was put in a place selected for him. In spite of the concentration of the labor administration in the hands of a single agency, however, since the outbreak of war the allocation of labor has been to a large extent decentralized to regional employment offices. These regional agencies cooperate closely with the regional agencies of other “administrative columns” responsible for the placing of orders and the allocation of other factors of production (raw materials and semifinished products, power, machines, tools, means of transportation). The factors of production are allotted to the most important orders, not on the basis of a detailed general plan but rather by the daily cooperation of various agencies, working not so much through central as through regional and local offices which, of course, are bound by rides and regulations. To the extent that discrepancies between the distribution of contracts and the various factors of production remain—and there generally are some the entrepreneurs must go from agency to agency seeking a reconcilia tion. The corporate organizations of industry sometimes assist them in these efforts. COM PULSION AND ELA STIC ITY Although there is no general plan for the German economy, every step which individuals take is dictated and controlled by Government agencies. Not only is the worker, for instance, subjected to legal or contractual norms, but the labor administration decides in each case whether he must remain at his place of work or whether he may or must change his employment, whether and how he is to be trained, otc It is characteristic that movements of labor in Germany have the appearance of spontaneity. Employers and employees follow the suggestions of employment offices and other authorities (e. g., combingout commissions) voluntarily; the compulsory service is used sparingly. So great is the power of the labor administration, so dominant the Government and party control over the decisions and even_ the thoughts of each individual, that everybody renounces opposition at the outset. . , Even a dictatorship able to influence people so effectively must, however, take care not to upset them. Therefore, decrees have been repeatedly revised during recent years. Restrictions of the mobility of the rural population were moderated, at least temporarily, Wage reductions which would have alienated the good will of the workers, have been canceled. The iron fist is covered with a velvet glove as soon as the highest aim, the utmost strengthening of war produc tion, seems endangered. A very elastic compulsory system has succeeded in putting the whole population to work, each according to his capacities, and all in the interest of economic warfare. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STABILIZATION OF M IL L IN E R Y IN D U ST R Y , 1936-41 THE New York metropolitan millinery market has since 1936 operated under the supervision of the Millinery Stabilization Commission. In its third report on the economic condition of the industry up to the end of 1941,1 the Commission states that “ the ups and downs of employment in 1938, 1939, and 1940 are materially less wide in New Tork than they are in the rest of the country,” though in 1941 they appeared to be about the same. Relative increases in monthly pay rolls were found to be even more marked than gains in employment. During this period there was also an encouraging increase in volume of business for the manufacturers. The Millinery Stabilization Commission, Inc., is an unofficial, supervisory, and administrative board created in 1936 by joint agreements between workers’ and employers’ organizations in New lo rk City, in an effort to stabilize the industry, which had for a decade been in a singularly unfavorable economic condition.2 In 1937, New Jersey organizations entered into affiliation. In the collective agreements of 1938 and 1940, clauses were included dealing with the “ consumers’ protection label,” the distribution and use of which is intrusted to the Millinery Stabilization Commission. The members of the Commission are disinterested citizens, and its activi ties are financed by the sales of the label, a symbol of fair trade and labor standards, to the members of industry, who agree to maintain the standards promulgated by the Commission. In other ways, such as through audits of the books of manufacturers, collection of statistics, investigations of complaints of fraud, and promotion of trade, the Commission seeks to maintain and advance the interest of the industry. The registrations of label members from 1938 to 1941 indicate that the trend of trade mortality is at last turning downward, the rate for 1941 being the lowest in the 4-year period. T a b l e 1.—Registrations of M illinery Firms as Label Members, 1938-41 Item Total registrations at beginning of year New registrations during year Registrations lapsed during year__ Total registrations at end of year Average number of firms in affiliation during year Ratio of number of lapsed firms to average number affiliated-------------------------- ------------------ percent. _ 1938 1939 1940 1941 573 170 164 579 576 160 195 573 591 576 579 107 126 560 570 29 33 31 22 573 In nearly all cases lapse of registration marked the retirement of the firm from the industry. Of the 107 firms newly registered in 1941, 71 were ventures which had been in the industry at some earlier period. The effect of the gathering war pressures in 1942 and followmg years upon trade mortality, the Commission states, is of course not yet apparent. 1 Millinery Stabilization Commission, Inc. T hird report, 1940— 41 2 See M onthly Labor Review, February 1941 (p. 355). 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New York, 1942. 23 Stabilization of Millinery Industry Employment and P a y Rolls A comparison of the trend of employment in the millinery industry for the country as a whole and for the New York-New Jersey market, the only market operating under a “ commission” form of government, is reflected in official Federal and State statistics from 1935, the year before the creation of the Commission, to 1941. Year-to-year percentages of change in the number of persons employed in the United States (from United States Bureau of Labor Statistics published data) and in New York State (from New York State Department of Labor published data) are shown below. New York State 1935 1936 1937 1938 1939 1940 to to to to to to 1936_______________________________ -3 .4 1937_______________________________ + 1 4 . 0 1938__________________________________ + 1 . 0 1939_______________________________ + 1 5 . 5 1940_______________________________ + 1 9 . 6 1941_______________________________ +2.6 United States +11.5 +4.0 -2.3 -2.8 +10.4 +17.8 The New York market is responsible for an extremely large part of the product of the millinery industry, and therefore the national figures are heavily weighted by the New York data. Index numbers of employment and pay rolls computed by the United States Bureau of Labor Statistics for the United States excluding New York State, and by the New York State Department of Labor for the State of New York,3 are presented in table 2. T able 2.— Indexes of Employment and P ay Rolls in M illinery Manufacture, New York State and United States (Excluding New York State), 1935—41 [1935-39=100] Employment Year 1935 . . __________________________________ 1936 ____________ ________ _____________________ 1937 __________________________________________ 1938 __________________________________________ 1939 __________ ________ __________________ 1940 _______________ _______________________ 1941 ___________________________ New York State 96.6 98.6 101.7 199.7 103.4 103.1 101.1 Rest of United States 92.7 93.5 101.7 108.2 103.9 99.9 134.7 Pay rolls New York State 90.3 95.0 103.1 104.1 107.5 116.3 118.9 Rest of United States 92.1 92.3 104.1 112.9 108.3 103.5 101.6 The annual indexes showndn table 2 disclose [some gains in pay rolls by the metropolitan market as compared with the rest of the United States, as well as some losses in employment, especially in 1941. For the year 1941, employment in New York stood at 101 percent of that for 1935-39, while for the rest of the country it was 135 percent. Pay rolls, on the other hand, were 119 percent of those in 1935-39 for New York, and 102 percent for the rest of the country. On the basis of monthly indexes, however, a noticeable and not un important difference is shown between the two areas in the size of the seasonal fluctuations, and this is clearly favorable to the New York 3 It has not been possible to include any official figures for New Jersey, as the New Jersey Bureau of Labor Statistics publishes no separate figures on the industry, its data for the millinery industry being co bined with those for lace goods. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 Monthly Labor Review—January 1943 area. The ups and downs of employment, while not noticeably differ ent in the two areas m 1935 and 1936, were materially smaller in New T trV n i 93f-’ 1939, an d 11940 than in the rest of the United States, llie lluctuations seem to be about the same in 1941, however. There also appears to have been some stabilization in pay rolls in the New York market, especially in 1938 and 1939. The earnings of New York millinery workers (whatever the purchas ing power of those earnings) are generally higher than those of workers m the rest oi the country. In both areas earnings increased noticeably during the 1935-41 period, and the difference in favor of New York seems to have widened somewhat. The average weekly earnings in the two jurisdictions m the years 1935 to 1941 were as‘follows: New York State $94. 7Q 9Ç 70 1935____ 1936_____ 1937___ 1938___ 1939____ 1940____ 1941____ United, States i o n on *p a U . oil o n a a ZU. 40 91 oc A -L. ¿O ¿91 1 . '70 io 99 ¿ a . 1l yn ¿9 4A. U / 27 00 9 7 S/L 27 72 9Q OI - — --------------------------------- 31. 11 24. 00 Sales and Earnings An important measure of the condition of an industrv is the amount of business done each year. In table 3 is shown the change in dollar J2lu,me business m each year of the period covered, except from i ° tdata ,ar? ?7ailable- The increase was slight liom 193/ to 1938, but reached 11 percent between 1938 and 1939* cLdtefnn iln ° 0 ^ 1 ™ !939 t0 194°- and agai" reached 11 per-! “ ‘L !,940y - A 1 the price-range groups had increases in each period, though not m equal measure, except that the lowest pricerange group had a decrease in 1937-38 of 7.8 percent. T able 3.—Percent of Chatage in dollar Volume of Sales by M illinery Manufacturers in l\e u 1 ork Market, 1935-41, by Price-Range Group All groups Group 1: $7.50 and under Group 2: $7.51- Group 3: $13.51- Group 4: Over $13.50 $24.00 $24.00 Period Num Per Num Per Num Per Num Per Num Per ber of cent of ber of cent of ber of cent of ber of firms change firms change firms change firms cent of ber of cent of change firms change 1935-36 K 193719381939-40 2 1940-41 2_ 38 2. 39 2. 199 +5.2 250 + 1.6 283 + 11.2 270 +1.9 303 +11.4 60 60 93 93 106 +3.2 -7 .8 +18.0 + 1.8 +7.9 81 114 119 106 117 +7.9 + Ì. 9 + 11.3 +. 9 +16.0 + 12.1 +10.6 + 2.1 +1.4 +7.4 +7.6 +1.7 +10.4 +4.0 +9.8 indS|f„rlh+Nbii+ ‘S 8S5SS& 5S. S S S T S iV M s * "" M,lllmrr Another important element in the condition of an industry is that ot costs. I he Commission has striven to develop among the millinerv manufacturers careful cost recording and has evolved a simplified cost-calculation sheet for the use of its members. In table 4 the distribution of operating cost for reporting firms is given for each year. A fiigh degree of stabilization is shown m the distribution of costs. The cost oi doing business increased only 2.5 points between 1935 and 1939 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 Stabilization of Millinery Industry which was probably largely due to social-security taxes. The largest increase in relative costs was for hat materials, which rose 7 points between 1935 and 1941. Relative labor costs rose only 1 point between 1937 and 1941, and administrative costs were slightly less in 1940 and 1941 than in former years. T able 4.—Percentages of Costs to Net Sales (A ll Price Ranges Combined) in Millinery Manufacture in New York, by Years, 1935-41 Item Number of firms reporting 1____________ . 1935 199 1936 199 1937 245 1938 239 1939 225 1940 172 1941 198 Percent Percent Percent Percent Percent Percent Percent 44.2 Direct costs: Hat materials, net-- - _____ 46.3 46.1 44.92 44. 76 45.7 51.0 26.2 25.78 25. 83 Direct labor____________________________ i 29.7 i 28.6 26.7 27.0 Indirect factory labor _ _ ___ 2. 44 3.1 3. 00 2. 7 2.8 Blocks and d ies..- . _ _ . ____ 1.3 1.4 1.42 1.3 1. 57 1.1 1.0 Shipping expenses: Expressage, parcel post, 3. 28 2.8 2.9 .6 3.82 2.6 and fare______________ ______________ 2.6 6.1 5.74 Selling costs____________________ _______ 6.0 5.7 6. 22 5.7 5.9 .42 .3 .40 .6 .3 Bad debts__ ______ ________ __ __ Taxes____ . . . . . _____ 1.2 1.63 1.75 1.7 1.8 Unemployment and social se cu rity ____ 1.1 1.46 1.59 1. 5 1. 6 .1 Other taxes _________ ____. . ____ . 17 . 16 .2 .2 Administrative expense. . . . . . ................ 2 8.3 10.4 3 8. 01 4 6. 71 2 8.3 4 6.7 4 6.9 Office salaries ______ _. .. ._ .90 1.0 1. 0 92.3 93.1 95.4 93. 79 94.81 93.2 Cost of doing business______ . . . . . ___ 92.3 6.2 7.7 6.9 4.6 6.3 6.9 Net profit (including withdrawals)________ 7.7 Proprietors’ withdrawals and salaries of ‘ 6.6 « 5.9 26.7 6.6 officers in closed corporations____________ 7.1 7.1 7.5 7. 5 Book remainder________________________ .6 .3 2 1.3 2 1.4 '.2 .2 1 Including indirect factory labor. 2 Including bad debts, taxes, and office salaries, s Including office salaries. 4 Excluding office salaries. ‘ Calculated from data in Millinery Stabilization Commission, Inc., The Economic Condition of the Millinery Manufacturing Industry in the Metropolitan Area, 1935-36, New York, 1937, p. 10. « U. S. Women’s Bureau Bull. No. 169, p. 112. 1 Loss. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies C EN TRA LIZA TIO N OF M ANPOW ER CONTROL THE President, on December 5, 1942, issued an Executive order (No. 9279) which provided for the mobilization and utilization of manpower and transferred the Selective Service System to the War Manpower Commission. The order vested complete control of manpower in Paul V. McNutt, Chairman of the War Manpower Commission, and empowered him to decide where men shall work, at what occupation, and whether they shall serve in the armed forces. At the same time the Selective Service System announced the suspension of the induction of draft registrants 38 years of age and older. The President stated that the order was issued “ in order to promote the most effective mobilization and utilization of the national man power and to eliminate so far as possible waste of manpower due to disruptive recruitment and undue migration of workers.” To close the gap between the Economic Stabilization Board and the Man power Commission, the President also appointed the Chairman of the Commission as an additional member of this Board. Under the terms of the President’s order, the War Manpower Commission is to consist of a chairman and one representative, designated subject to the approval of the chairman, of each of the following agencies and departments: The War Department, the De partment of the Navy, the Department of Agriculture, the Depart ment of Labor, the Federal Security Agency, the War Production Board, the United States Civil Service Commission, the National Housing Agency, and such other executive departments and agencies as the President shall determine, and a joint representative of the War Shipping Administration and the Office of Defense Transportation, designated by the chairman. Transfer of Selective Service to War Manpower Commission The Selective Service System, which was established for the purpose of carrying out the provisions of the Selective Training and Service Act of 1940, as amended, was transferred to the War Manpower Commission to be administered under the supervision and direction of the Chairman of the War Manpower Commission. The local boards and appeal boards of the Selective Service System are to continue to exercise the functions, powers, and duties vested in them, subject, however, to the supervision and direction of the Chairman. The Chief of Finance of the United States Army is to act as the fiscal, disbursing, and accounting agent of the Chairman in carrying out the provisions of the Selective Training and Service Act. 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies 27 The provisions of the order relating to draft boards authorize the Chairman to issue mandatory directives to these boards. Heretofore, they have operated without any effective central authority or machin ery that would prevent divergences or confused policies with respect to the use of men in the armed services or the vital war industries. Thus, the Chairman of the Commission may now, in effect, decide whether a man is to go into the Army or Navy, the Marine Corps, the Coast Guard, a shipyard, or some other plant, or to a farm. As a guide for putting men into the armed services, the order directs the Secretary of War and the Secretary of the Navy, after consultation with the Chairman, to determine the number of men required to be selected each month in order to fulfill the total respective requirements of the Army and Navy as approved by the President. The Chairman is to furnish the required number of men through the Selective Service System. The order specifies that the ages for induction of enlisted men into the armed forces shall be between 18 and 38. At the same time the Selective Service System announced suspension of the induction of draft registrants 38 years of age and older. A r m y Release of Men Aged 38 and Older At the time the President’s order was issued, the War Department announced that men 38 years of age and older will be released from the Army upon the following conditions: (a) The soldier has volun tarily requested discharge in writing to his immediate commanding officer; (b) the soldier is handicapped by age to such an extent that his usefulness to the Army is secondary to his usefulness in industry; and (c) the soldier has presented satisfactory evidence that he will be employed in an essential war industry (including agriculture) if he is discharged from the Army. Each application for discharge will be considered on its individual merits and discharge will not be granted unless a suitable trained replacement is available. Labor Provisions The labor provisions of the order are designed to prevent unhealthy competition for workers among industrial concerns and to give the Federal Employment Service a guiding hand, unweakened by divisions of authority with State or local employment boards. The Chairman is authorized to take all lawful and appropriate steps to assure that (a) all hiring, rehiring, solicitation, and recruitment of workers in or for work in any establishment, area, facility, or occupation designated by the Chairman will be conducted solely through the United States Employment Service, and (b) that no employer shall retain in his employ any worker whose services are more urgently needed in any establishment, area, facility, or occupation designated as more essential by the Chairman. Training of Workers The order also vests the Chairman with considerable power over the training of workers. Both the War and Navy Departments were directed to have their training programs in non-Federal educational institutions conform with such policies or regulations as the Chairman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 Monthly Labor Review—January 1943 prescribes as necessary to insure the efficient utilization of the Nation’s educational facilities and personnel for the effective prosecution of the war. Procedure The Chairman was directed to (a) issue such policies, rules, regu lations, and general or special orders as he deems necessary to carry out the provisions of the order; (b) take steps to prevent and relieve gross inequities or undue hardships arising from the labor provisions of the order; and (c) establish such procedures (including appeals) as are necessary to assure a hearing to any person claiming that any action taken by any local or regional agency of the War Manpower Commission is unfair or unreasonable as applied to him. The Chairman was given sweeping power in carrying out his new and enlarged duties, subject to appeal to the President, “ or to such agent or agency as the President may designate.” Management-Labor Policy Committee The order also directed the Chairman to appoint a managementlabor policy committee to be selected from labor, agriculture, and industrial management for purposes of consultation. He also is permitted to appoint advisory committees of governmental or private groups, or both. ►######## REGULATION OF WAGES, A B SEN TEEISM , AND HOURS IN AUSTRALIA WAGES of workers were frozen on February 10, 1942, as a part of Australia’s “ austerity” program for winning the war, increases being permitted only to compensate for rises in living costs and to correct wage anomalies. A report from the United States Minister in Can berra states that wage freezing has been accomplished with a minimum 'of disturbance to business.1 The wage regulations have had a wide spread effect, and the number of exceptional cases in which adjust ments have been permitted has been insufficient to affect materially the general principle of freezing real wages. No estimate can be made of the extent to which the regulations have deterred workers from requesting wage advances. General claims for increases are no longer brought before the industrial tribunals, and competitive bidding for labor by employers has been reduced greatly. The difficulties that have arisen have been caused primarily by infractions of the defense regulations forbidding absence of either an employer or an employee from employment, except for good cause. In an effort to curb absenteeism and raise production, hours have been limited to a 56-hour weekly maximum. Regulation of Wages Authority for pegging wages is’contained in Part V of the National Security (Economic Organization) Regulations $ (Statutory Rules, 1942, No. 76), as amended from time to time during 1942. The reguBeport of Nelson Trusler Johnson, U. S. Minister to Australia. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies 29 lations are administered by the Department of Labor and National Service. Under the original regulations, rates of pay (including directors’ fees) were pegged at the level of February 10, 1942. If, on that date, the individual was receiving a higher rate of pay than that specified in the award for the work, he was entitled to continue to receive the higher rate. Industrial tribunals were forbidden to alter rates of remuneration unless the matter had been before the appropriate body prior to February 10, or unless the industrial tri bunal was satisfied that the existing rates were anomalous, and action in the latter case could be taken only with the approval of the Minister. All cases before a tribunal were to be completed by May 1, but the date was postponed on two occasions, making the final date November 1, 1942. Wage changes are permissible in accordance with provisions for (1) automatic adjustments following a variation in cost of living; (2) promotion to a higher position; (3) completion of a probation period; and (4) periodic increments specified in a con tract of employment. In amending the wage-freezing regulations the tendency has been toward relaxation, but advocates of the plan state it would be in accurate to infer that the basic objectives are being abandoned. The amendments made are not fundamental, and were designed in most cases to smooth out discrepancies and anomalies as between different States and kinds of awards. As the regulations now stand, the important principles originally laid down remain. They are in clarified and more precisely defined form, and are believed by officials to have reached reasonably final shape. The terms of some of the more important amendments are summarized below in chronological order. When the original regulations had been effective for 7 weeks, Statutory Rules, 1942, No. 145 was adopted, setting forth the follow ing additional conditions under which rates of remuneration might be changed: (a) Where the alteration was made to m aintain the difference between the award rate and the rate being paid, or customarily paid, by th e employer prior to February 10, 1942; (b) Where the alteration was made by an authority of a S tate (not being an industrial authority as defined) having power to fix the rem uneration of State employees, if the application for such alteration was 'made before February 10, or the alteration was for the purpose of an adjustm ent in accordance w ith a variation in the cost of living; (c) Where negotiations between the parties to an industrial agreement had, in the opinion of the Minister, been going on before February 10, 1942; (d) Where the alteration was made to adjust piece-work rates, where the output of the employee was altered because of changes in the m aterials or com modity on which the employee was working, or other reasons, so th a t the earningpower of the employee would not be reduced below (nor above) his earning power a t February 10, 1942; (e) Where the application of an existing award or agreement was extended, such extension being under consideration before February 10, 1942; and (f) Where, the Minister being satisfied th a t an anomaly existed, the alteration was made by an industrial agreement, or by an authority of a S tate having power to fix the rem uneration of State employees. The same regulation provided that bonus payments which were customary prior to February 10, 1942, should be continued. Under Statutory Rule No. 224, an industrial authority may change rates of pay where the alteration is for the purpose of effecting an 50 1 1 5 2 — 43-------3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 Monthly Labor Review—January 1943 adjustment in accordance with a variation in the cost of living. Although certain authorities were in the habit of making cost-of-living adjustments by direct variation of an award after examining changes in the cost of living, the original regulations recognized only adjust ments which were “ automatic,” and for which provision was made in the award or agreement. Powers of State premiers to adjust and amend the basic wage are covered by Statutory Rule No. 257. The question arose because the Arbitration Court of Western Australia refused to make the custom ary quarterly wage adjustment in conformity with the rise in the cost of living. When the union applied for a writ of mandamus to compel the court to adjust the rate, the supreme court upheld the arbitration court, because the Industrial Arbitration Act left it to the discretion of the latter court either to adjust the wage or leave it unaltered. Under Rule No. 257 the premier of a State may now order an adjustment of the basic wage based on a change in living costs, if the arbitration court refuses to do so. The premier must be satisfied that his action is desirable in the interests of the defense of the Commonwealth or the more effective prosecution of the war. The Commonwealth Court of Arbitration was empowered to hear and determine matters relating to overtime rates of pay, Sunday or holiday rates, or holiday privileges of shift workers whose employment is regulated by the four major awards governing the metal trades. (This power was granted under Statutory Rules, 1942, No. 293.) Continuous shift operation in the metal trades was introduced com paratively recently, and the existing award provisions on the matters mentioned were tentative and subject to alteration in the light of experience. By amending the regulations, the Court was given a freer hand in these rather minor but somewhat troublesome matters that could be dealt with on their merits. The same regulation for malized the procedure to be followed in granting the Minister’s con sent to awards or determinations made to remove “anomalies” ; and deals with applications made before the effective date of the wage freezing order (February 10), for establishing an industrial authority, such as a wages board. Statutory Rule No. 332 extended to November 1 the time for the courts to dispose of pending wage claims. It also provided for review, under certain conditions, of the rates of remuneration pre scribed under industrial agreements. Before a review may be made, the Commonwealth Court of Conciliation and Arbitration must certify that the wage rates were fixed under an agreement in effect on February 10, 1942, and that owing to a change of circumstances before that date, a review is desirable. After the certificate is given, the rates may be varied by an award, order, or determination, made by an industrial authority, or by an industrial agreement ap proved by an industrial authority. This amendment insured that parties refraining from making wage claims before February 10, because of the existence of industrial agreements, would not be placed at a disadvantage as compared with parties to industrial awards, who were able to take their claims to an industrial authority imme diately when grounds for a claim became apparent. Powers of State premiers were extended under Rule No. 344, when it became apparent that Rule No. 257 gave them power only to change pay rates in order to compensate for increases in the cost of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies 31 living in the period immediately preceding the adoption of Rule No. 257. They may now make adjustments to cover all changes on which the Arbitration Court has failed to act. Rule No. 344 also removed a conflict between the regulations under review and the National Security (Industrial Peace) Regulations, through which the wage-pegging provisions might have nullified the Court’s power to declare that certain rates of pay shall be a common rule in a particular branch of industry. Causes and Cure of Absenteeism Regulation No. 19, dealing with absenteeism, forbids the absence of any person (including an employer) from his employment except for (1) illness or incapacity; (2) leave of absence to which the indi vidual is entitled; (3) domestic or other pressing emergency; and (4) any reason considered by the Minister to be satisfactory. The regulation was amended (Statutory Rules, 1942, No. 81) to provide that the Minister’s permission should be given in advance and in writing. Attendance to union business was made a permissible reason for absence from work under Statutory Rules, 1942, No. 145. An increase in absences is reported by both employers and union officials. Certain groups in Australia maintain that high absenteeism is a result of the high wage level. Trade-union leaders attribute the rise to the curtailment of leisure for workers, owing to the length ened workweek. The Commonwealth Government is endeavoring to reduce absen teeism, and thus raise output, by restricting working hours. Regula tions were issued on October 19, 1942, stipulating that after November 30, no male person over 18 years of age'should work more than 56 hours a week, exclusive of unpaid meal periods. For males under 18 years of age the limitation is 48 hours. In an emergency, employees may be required to work more than the prescribed hours for 3 weeks in any 3 months. Exemptions for longer periods are subject to the approval of the Director-General of Munitions or of Aircraft Pro duction. Consideration was given to reducing the maximum weekly hours of work for women to 52 hours, but the Government decided against the lower limit. According to a statement of the Minister of Labor this was impracticable, as the work of many men in factories depends upon maintenance of the flow of goods produced by women. In cases where such interdependence does not exist it is expected that the general limit on hours of women can be maintained at 52 hours a week. . The Government is said to be reluctant to impose penalties under the National Security Act for violation of the regulations governing absenteeism. Union leaders are being urged to use their powers to discipline offenders. Drastic penalties have been gazetted for other infractions of wartime regulations, however, and there is the possi bility that unless the unions and employers can solve the absentee problem the Government will take appropriate action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 Monthly Labor Review—January 1943 SU BSIDIZED CONTROL OF LIV IN G COSTS IN CANADA AND GREAT B R IT A IN BOTH Canada and Great Britain have adopted the policy of subsi dizing the cost of certain articles in general use to prevent higher retail prices. Those Governments find it more economical to pay the subsidy than to allow the cost of living, as shown in the official index number, to move upward, as rises in the index make for hard ship among the working people and contribute toward inflation.1 Under certain collective agreements in Great Britain, provision is made for wage adjustments in accordance with advances in the costof-living index. Even in industries where wage adjustments are not subject to the rise in the index, it is inevitable that demands for increases in pay will occur when employees find that changes in their earnings lag behind those in living costs. The official index of cost of living in Great Britain is based on the level of July 1914 as 100. At the outset of the war the index was 155. In 1942, it ranged between narrow limits of from 199 to 201. A statement made by the Minister of Labor and National Service to the House of Commons on October 15 stressed the importance of subsidies. It was then estimated that if the Ministry of Food were not subsidizing foods included in the cost-of-living index, the index would be raised by about 20 points, or 10 percent over the existing level. He added that it would be impossible to estimate the effect on the cost of living if all the other measures taken by the Government to stabilize prices were discontinued. In Canada, a decision to subsidize coffee, tea, oranges, milk, and beef, and thus reduce cost of living, was announced by the Ministry of Finance, on December 3, 1942. This was consistent with the announced preference for subsidy payments as being less costly than the alternative of rising prices. The decision followed the announce ment of an 0.8 percent rise in the official index of living costs in Octo ber, and it is anticipated that the index will be reduced as a result of the subsidy. Since the outbreak of war, the Canadian cost of living as reflected in its index has increased 17.7 percent. The index (based on 1935-39 = 100) was 117.8 on October 1, 1942, and 118.6 on November 2. A rise in the food index from 129.8 for October to 132.4 for November accounted for the entire increase in the cost-of-living index. Government payments of approximately $40,000,000 a year will be required to absorb the higher prices of the commodities affected. However, the cost was considered preferable to further increases in the cost-of-living bonus, which under the wartime system must be increased for each quarterly rise of 1 point in the official index of cost of living. 1 Great Britain, Parliament, House of Commons, Debates, October 15, 1942 (col. 1778); and Ministry of Labor Gazette, October 1942. Canada, Department of Labor, Labor Gazette, October 1942; Montreal Ga zette, December 3, 1942; report from the United States Legation, Ottawa, Canada. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 Wartime Policies 0 COMPULSORY LABOR SERV ICE IN FRA N CE A LAW promulgated in Vichy, France,1on September 4,1942, provided that all male citizens residing in France between the ages of 18 and 50 years, and all unmarried women between the ages of 21 and 35, who are shown by a medical examination to be physically fit, may be required to carry out any work judged by the Government to be in the higher interests of the nation. All heads of enterprises are re quired to conform to instructions received by them from the competent Secretaries of State regarding the constitution of crews of workmen. In order to insure the stability of the personnel, no workmen may be dismissed or labor contracts canceled in industrial and commercial enterprises without the authorization of the labor-inspection service, and no one may be hired without such authorization. These measures were to be put into effect by orders of the competent ministries, for a whole territory, for a region, or for a determined locality, in the branches of industry and commerce or the professions to which they apply. Orders by these authorities will govern the conditions of labor of the personnel and the obligations of the heads of enterprises. Labor inspectors and officers of the police courts will be in charge of the enforcement of the provisions regarding the hiring and discharge of workers. Every able-bodied Frenchman between the ages of 18 and 50 must be able to justify his employment as useful to the interests of the country; if he cannot do so he will be required to take work desig nated by the services of the Secretariat of State for Labor. In order to direct workers toward the occupations which lack workers, a technical and occupational organization must be established by employers, under terms specified by an official order. Any person who infringes the law or the measures taken to put it in effect will be subject to fine and imprisonment. Foreigners residing in France may be subject to similar measures to be prescribed by the Secretaries of State for Foreign Affairs and for Labor. #**##*< EX T E N SIO N OF M ANPOW ER CONTROLS IN ZEALAND 2 NEW FURTHER restrictions were placed on New Zealand labor under a series of orders issued by the Minister of Industrial Manpower in November 1942. The recent orders modify and strengthen those adopted earlier in the year following the entry of Japan into the war.3 In connection with the new measures, the Minister of Industrial Man power announced that almost 500,000 persons had come into direct contact with the wartime manpower administration through regis trations and the control established over the employment of labor and essential industries. The coverage is amazingly high, as the total population of the country is slightly over 1,500,000 persons. 1 Vichy, Journal Officiel, September 13, 1942. 2 Data are from reports of Basil D. Dahl, United States commercial attaché, at Wellington. * See Monthly Labor Review, issue of April 1942 (pp. 895-904). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 Monthly Labor Review—January 1943 Restrictions on Employment The Employment Restriction Order No. 2 was issued on November 6, 1942, by the New Zealand Minister of Industrial Manpower (Mr. McLagan) in pursuance of the powers vested in him by Regulation 28 of the Industrial Manpower Emergency Regulations 1942. It re vokes Employment Restriction Order No. 1, dated May 14, 1942, and under the new regulations the need to secure the consent of a manpower officer before engaging labor is “ greatly extended.” The Minister stated: The new restriction order applies to the same localities 3 as the former order, b u t it applies to all employers operating in those localities. Every employe! in any of the localities specified m ust now secure the consent of the district manpower officer before engaging any labor unless th a t labor is to be employed on work in an undertaking declared to be essential, on farming operations or m arket garden ing, on ships or on the w aterfront for the loading or unloading of ships, or unless the worker is to be employed as a midwife, m aternity nurse, or a professional nurse for the sick. Consent m ust be obtained in all other cases unless the worker is employed only for a period not exceeding 3 consecutive days. I t is an offense under the regulations for any employer to whom the order applies to engage or attem p t to engage labor other than for these purposes w ithout first obtaining the consent of the district manpower officer. I t is, for example, an offense now to engage a domestic servant w ithout permission. When an employer applies for permission to engage a worker, it was explained, opportunity will be taken to weigh the employer’s claims to the worker against the Dominion’s needs for the service of that person elsewhere. Each application will be decided on its merits. It is not intended to prevent employers from ascertaining by the usual methods whether labor is available, provided they do not hire the employee before receiving the consent of the district manpower officer. A further statement by the Minister of Industrial Manpower clari fied the regulations, citing the main obligations placed on employers and workers in essential industries and enterprises. Any worker wishing to leave his employment, or employer wishing to dismiss a worker, must first obtain the written permission of a district manpower officer. In cases of serious misconduct, an em ployer may suspend (but not dismiss) a worker, and must report the suspension within 24 hours to the district manpower officer. If the manpower officer considers the suspension unjustified, he may require the worker’s reinstatement, and, if necessary, compensation for time lost. Every decision or direction made by a district manpower officer must be communicated in writing to both the worker and the em ployer affected, and is subject to appeal to a manpower appeal com mittee to be lodged with the district manpower officer within 7 days If an appeal is decided in favor of the worker, the committee may re quire that he be paid for part or all of any lost time incurred. At the 3 These include the borough of Ashburton; the city of Auckland, the boroughs of Birkenhead, Devonport, Ellerslie, Mount Albert, M ount Eden, New Lynn, Newmarket, Northcote, Onehunga, One Tree Hill, Otahuhu, and Takapuna, and the road districts of Mount Roskill, Mount Wellington, and Panmure Town ship; the borough of Carterton; the city of Christchurch, the boroughs of Lyttelton, Riccarton, and Sumner, and the counties of Halswell, Heathcote, Paparua, and Waimairi; the city of Dunedin, and the boroughs of Green Island, Port Chalmers, St. Kilda, and West Harbour; the boroughs of Gisborne, Breymouth, Hamil ton, and Hastings; the city of Invercargill; the boroughs of Kaiapoi, Masterton, Milton, Mosgiel, and Napier; the city of Nelson; the boroughs of New Plymouth, Oamaru, and Paeroa; the city of Palmerston North; the boroughs of Rotorua, Stratford, and Timaru; the city of Wanganui; the cities of Wellington and Lower H utt, the boroughs of Eastbourne and Petone, and the Johnsonville Town District; the boroughs of Westport and Whangarei. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies 35 hearing of an appeal, any employer or worker may be represented, by an officer of the association or industrial union to which he belongs, or by a solicitor. A worker may be transferred to other work if his usual work is abolished or is temporarily not available, or if more urgent work has to be done. An employee temporarily transferred must be paid either the time rate appropriate to his usual work or the rate for the work performed, whichever is higher. If the person transferred is to work at a lower rate or for mere than 1 month, the district manpower officer’s consent in writing must be obtained, and the worker may appeal. Except where a strike interferes, workers in essential enterprises are entitled to a minimum weekly wage, provided the worker continues to be capable of anda vailable for work and willing to perform other work if his usual work is not available. Part-time workers and certain other workers in essential undertak ings are exempted from the provisions of the regulations. Every employer in an essential undertaking must, within 14 days, notify the district manpower officer of every engagement of a worker for more than 7 days, stating the name and address of the worker, the date on which employed, and the occupation or capacity in which he has been engaged. Unexcused absence for more than 4 hours during ordinary working hours, or persistent shorter absences such as tardiness or early leaving, must be reported at once by the employer to the district manpower officer, who may order a deduction from wages of up to 2 days’ pay for such absences. Any person or company may be directed to perform such services as the Minister may require. Workers may be required to register for work of national importance, and when registered, may be directed to such work by a district manpower officer. An employer may be directed to give employment and any necessary training to any per son directed under any of these regulations. All directions are sub ject to appeal. The provisions of the Occupational Reestablishment Regulations apply to all workers directed from their existing em ployment. The new regulations impose three important obligations on all em ployers. It is an offense for any employer to engage a worker who has left an essential undertaking without consent in writing of a dis trict manpower officer. No employer may employ or continue to employ any worker if he has been directed elsewhere by the Minister or a district manpower officer. Employers must see that all employees eligible to register under the regulations have duly registered. The employer must report any cases of default to the district manpower officer. Failure to do so is an offense. All persons registering receive an acknowledgment signed by the district manpower officer. Any person claiming exemption from his obligations on medical grounds may be required to submit to a medical examination by a doc tor nominated by the Minister or the Controller of Manpower. Manpower officers are empowered to enter premises, interview persons, and inspect books with a view to insuring the enforcement of the regulations. Every person who is engaged in an essential industry or who is sub ject to a direction is deemed to be a member of any industrial union https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 Monthly Labor Review—January 1943 normally concf rned with his occupation. A manpower officer may, under certain nrcumstances, require the deduction of union fees from wages. It is an offense for an employer or any fellow worker to deter a worker from lodging an appeal, or to induce him to terminate his employment. It ;s likewise an offense for any worker to induce his employer to dismiss him or to fail to work with due diligence and care. Very substantial penalties are provided for all breaches of the new regulations. Restrictions on Wages Restrictions on the payment of minimum weekly wages to employ ees of essential enterprises were modified by the terms of the Minimum Weekly Wage (Essential Undertakings) Order 1942 (No. 2), issued on November 11, 1942, pursuant to Regulation 13 of the Industrial Manpower Emergency Regulations 1942. Earlier regulations cover ing minimum pay were amended, as this was found necessary in order to give full effect to the recommendations of a special committee of the Industrial Emergency Council. The amended order applies to all essential enterprises except those subject to the Defense Works Labor Legislation Suspension Order. Minimum weekly wages, exclusive of bonus, overtime, or other special payments remain as the equivalent of the worker’s ordinary weekly earnings but may not exceed £5 10s. for an adult male; £2 17s. 6d. for an adult female; and £1 15s. for a junior worker. However, the new order specifies that in any week during which a worker is entitled to receive a higher weekly minimum wage than is fixed by the order, the higher wage shall be paid to him for that week. The prescribed method of calculating the weekly working hours and wages is as follows: (a) The ordinary weekly earnings of any worker shall be deemed to be an ai^ou n t calGiilated for the worker’s weekly hours a t the ordinary-tim e rate* (b) Where no ordinary-time rate is fixed under the term s of the worker’s employment, the ordinary weekly earnings of the worker shall be deemed to be an am ount calculated for the worker’s weekly hours a t the ordinary-tim e rate for the same class of work fixed by the award or agreement in force in the district nearest to the locality where the worker is employed, or, where there is no such award or agreement in force in New Zealand, a t such ordinary-tim e rate as may be determined m any case by the Minister of Labor; (c) 4 he weekly hours of any worker shall be deemed to be the weekly num ber of hours prescribed under the term s of the worker’s employment; (d) Any am ounts actually earned by any worker on any day in excess of the appropriate daily proportion of his or her ordinary weekly earnings shall be deemed to be overtime or bonus or other special paym ents. Conditions under which a worker is entitled to the minimum weekly wage, described above, have been extended. He must now have reported for work at the usual place and time or have taken such other steps to ascertain if his services were required. He must have performed the work with due diligence, proper skill and care, and must have complied with all the terms and conditions of employment. Luring the immediately preceding 6 weeks the worker must not have been absent on more than 1 working day for any reason other than sickness, accident, or other causes beyond his control, or on leave of absence, or for more than 3 working days if the hours worked by him during that period exceeded the weekly number of hours for such 6 weeks by 20 percent or more. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wartime Policies 37 Where it is customary to close down at Christmas, New Year, or Easter, no day in that close-down period is to be regarded as a working day unless the Controller of Manpower directs that work is to be done. If the controller requires operation during the close-down period and the worker absents himself, he cannot claim the minimum weekly wage for that period. However, such absence would not, of itself, prejudice any claim under the order for the minimum weekly wage during the following 6 weeks. Employment Situation Statistics of employment issued by the New Zealand Department of Labor for the year ended March 31, 1942, indicate some of the shifts from peacetime to wartime employments. Factory employment rose to 118,180 during the year, from 116,607 in the year ended March 31, 1941. Over the same period the number of employees in stores fell to 52,026 from 53,461. The number of men in employment declined to 80,469 from 82,316 in factories, and to 24,451 from 26,718 in stores, owing to the continued mobilization of men of military age. The rises in number of women employed were to 37,111 from 34,291 in factories, and to 27,575 from 26,743 in stores. Growing apprehension has been expressed over the shortage of farm labor. However, the Government has assured farmers that they will be able to secure help to carry on seasonal work. Shearers are to be released from the Army temporarily for the sheep-shearing season. This will be arranged, without the necessity of applying to the appeal boards, for a maximum period of 3 months. By September, 7,000 workers, of whom 6,000 were men, had been drafted from nonessential to essential work. In addition to the workers added to pay rolls on war work by voluntary and compulsory measures, production is being bolstered by overtime employment. Overtime hours in 1941 totaled 1,413,175 as compared with 1,241,807 in 1940. Regular overtime of 10 to 30 hours weekly was worked in 1941 in the engineering and munitions industries, 10 to 12 hours in canister making, 6 to 15 hours in woolen milling, 6 to 14 hours in lumber and box making, 4 to 10 hours in soap production, 3 to 16 hours in the clothing industry, and 2 to 7 hours in canvas manufacture. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment and Labor Conditions A D JU STM EN T OF LABOR STANDARDS TO WAR N EED S IN N EW YORK THE demand for maximum possible production in war industries, following the entry of the United States into the war, led to requests by many employers in war industries for relaxation of certain labor standards to enable them to meet such demand. In the State of New York provisional measures to make possible the maximum use of plant personnel were put into effect almost immediately after the entry of the United States into the war. In January 1942 legislation was approved by which dispensations from the labor law could be obtained when shown to be necessary. This legislation, which applied retroactively, established carefully prescribed standards and limits to the powers granted. An analysis of the dispensations granted during the first 6 months (December 1941 through May 1942), when New York industries had to make rapid adjustments to the war, has been made by the Division of Women in Industry and Minimum Wage of the New York State Department of Labor (in the Industrial Bulletin for October 1942). It indicates the extent of departure from normal labor standards and the present trend of requests for dispensations. In the initial emergency period employers who were unable to secure additional skilled employees or equipment requested permission to employ their workers 7 days a week. However, by June and July 1942, it became apparent that employers had been able to make adjustments and were not asking for this kind of dispensation. They had come to realize that this war will probably be long and were there fore conserving their manpower and womanpower through the use of reasonable hours and multiple shifts. Up to the end of May 1942, three-fourths of the dispensations from the day-of-rest law allowed the employer to put his workers on a 7-day continuous schedule if such a schedule would facilitate maximum production in the plant. During June and July, however, 86 percent of such dispensations limited the 7-day-week schedule to a specified number of times during the dispensation period, in order to meet emergencies or to speed up production in bottleneck processes. This procedure insured, ordinarily, a weekly day of rest and relaxation for the worker (necessary for maximum production over a long period) but allowed leeway for emergencies, repairs, or break-downs. The Division regarded it as sufficient for the present needs of war industries. Up to the end of the 6-month period, 47 percent of the dispensations relating to the working hours of women permitted longer hours on the day shift. During June and July, however, only 34 percent of the dispensations were for these purposes, whereas 66 percent provided 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 Employment and Labor Conditions 2- or 3-shift work schedules for women. This latter arrangement provided for greater use of available equipment, and protected the individual workers from fatigue resulting from long working hours. Dispensations Requested and Granted During the period, December 8, 1941, to July 31, 1942, requests for relief from peacetime requirements of the labor law were made by 1,770 plants. Only 16 percent of such applications were refused, although some requests were modified, especially when the need was found to be exaggerated. As the War Emergency Act provides that in cases of emergency provisional dispensations for not longer than 1 month may be granted, almost immediate service may be given. In 86 percent of the cases, the employer received a provisional grant within a week after his request was mailed to the State labor depart ment; in 53 percent, final disposition of employers’ requests was made in less than 2 weeks, and in only 13 percent of the cases was more than 1 month required and then frequently ¡because of ¡¡insufficient infor mation supplied by the employer.’ During the period December 1941 through May 1942, dispensations were granted to 1,262 plants, involving a total of 380,781 employees, of whom 71,642, or about 19 percent, were women. The numbers of plants and of employees involved in the different types of dispensations are shown in table 1: T a b l e 1.—Plants With Dispensations, and Employees Affected, by Type of Dispensation, December 1941-M ay 1942 Employees Type of dispensation Plants Total Men Women All types.------- --------------------------------------------------- 1,262 380,781 309,139 71,642 Relating to conditions of work-------------------------------1 day of rest in 7---------------------------------- ------- — Hours of women in factories. .................. . . . Other types of dispensations............. — -------------Relating to fingerprinting only------------ ------ ------------ i 946 661 458 247 316 298,973 242,491 54, 272 42,379 81,808 240,030 230,141 58,943 12,350 54,272 19,800 12, 699 22, 579 69,109 i 200 of these plants also received dispensations to fingerprint employees as a condition of employment. The total is less than the sum of the parts, since some plants received more than one type of dispensation. In the 316 plants which were granted no other dispensation than to fingerprint employees, this was desired because of the Army and Navy policy regarding the safeguarding of war plants. All the orders permitting a 7-day week provided that no employee should be required to work such a week unless he was willing to do so. Unlimited dispensations were granted to 502 plants (with 191,479 workers); limited dispensations were granted to 181 plants (with 60,555 workers), being generally restricted to six times in 6 months. Some plants received both types of dispensations during the 6-month period. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 Monthly Labor Review—January 1943 Hours of Work of Factory Women Dispensations from the provisions of the labor law relating to hours of work of women in factories were granted to 458 plants. The relaxations permitted the employment of women for longer daily hours, for more than 48 hours a week, on night shifts beyond 10 p. m., or for various combinations of these modifications. The number of plants and of employees affected, by region of State, is shown in table 2: T able 2.—Plants With Dispensations Relating to Hours of Work of Women, and Women Employed and Affected, December 1941-M ay 1942 Item Plants_______ . . . __ _ Number of women— Employed in sh o p __ . . . On war work. ______ To be hired as a result of dispensation grant Covered by dispensation i . . . __ 1 New York State Metropolitan area Up-State area 458 242 216 78,645 60, 258 16,061 54,272 24,642 20,438 4,239 18,882 54,003 38,820 11,822 35, 390 Includes anticipated hirings. Large groups of the women affected by these dispensations were in industries m which women were customarily employed; there were J2>5n3- m the electrical-machinery industry, 5,125 in textile mills, and 3,649 id apparel plants. Almost 10,000 of the women, however, were m plants producing iron and steel products and some of these were in plants and on jobs which were new to women. Longer hours.-—The permitted weekly hours under the dispensations langed from a schedule of 49 to 50 hours for 3,094 women in 22 plants to 60 hours for approximately 3,000 women, most of whom were in the up-btate area. Other schedules permitted were 52 to 53 hours for 4,900 women in 23 plants, 54 hours for 19,487 women in 226 plants, and 55 to 56 hours for 10,583 women in 27 plants. Work at night.—Permission was granted 250 plants to employ nearly 25,000 women at night beyond the statutory limits of 9 p. m. for women under 21 years, and 10 p. m. for women 21 years and over. Un a °?Lthe t ^ ee Plants.which employed women at night on one shift used this shirt for training new workers during hours when worlc was slack About 40 percent of the women who were at some time on e night shift had scheduled hours ending on or before midnight, proxmiately 7,000 women employed on the third shift in plants which operated on a 3-shift schedule for women ended work at 5 a. m. or later, the usual time being between 7 and 8 a. m. Multiple-shift operation for women.—The largest group of women anected by dispensations granted for employment of women on a shift basis numbered approximately 27,500 in 113 plants which were given permission for 3-shift operation for women. They were scheduled to work longer hours on the day shift or to work on the second or third shift at night. Altogether^ 151 plants and 13,727 women were covered by dispensations permitting employment of women on a 2-shift basis. Some of ese plants had employed women on a longer workweek than 48 hours w en on a 1-shift basis. The most usual schedule for women on a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 Employment and Labor Conditions 2-shift basis was a 48-hour workweek on both shifts or a 54-hour week on the first shift and a 48-hour week on the second shift. In 27 plants, however, 1,212 women had a scheduled workweek of 54 hours on the second shift at some time during the period. The type of shift operations was changed by 44 plants during the 6-month period. These shift changes made possible better utilization of the available equipment and the employment of about 6,700 addi tional women. Four plants reduced the number of shifts for women either because supervisory help was not obtainable or because addi tional equipment for the operation involved could be obtained for additional workers on fewer shifts. One plant changed from 2 shifts to 1 shift, because its woman workers objected to working until 1 a. m. on account of the inaccessibility of the plant. Data are given in table 3 on the number of plants which changed the type of shift opera tion, the number of women on war work, and the anticipated increase in employment after the shift change: T able 3.—Plants Changing Shifts, Women on Wor Work, and Anticipated Increase in Their Employment, December 1941-M ay 1942 Change in type of shift operation T otal.-- ______________ _____________ ________ 1 -shift to 2 -shift operation _ _ . 2-shift to 3-shift operation.. _____ . . . __________ .. 1-shift to 3-shift operation _ _ __ ______________ __ 3-shift to 2-shift operation . __ 2 -shift to 1 -shift operation... . 1 -shift to 2 -shift to 1 -shift operation___________ ___ Women employed on war work Plants Anticipated increase in employment after change in type of shift operation 144 12,047 6,667 19 16 2, 507 6 , 368 2,293 69 275 535 264 2,188 3,750 2 1 2 1 465 i Not the sum of the items but as given in the report. Women under 21.—In order to permit women under 21 years to work after 9 p. m. or before 6 a. m., so that they could be used on the same schedules as other woman workers or could work on night shifts or as messengers, 362 plants were granted dispensations involving 11,550 women under 21 years. Approximately 6,000 women under 21 were permitted to work longer than 48 hours a week on a day shift during the 6-month period and about 1,900 were allowed to work on a night shift. Training of Workers The training of new workers or the upgrading of old employees to increase an employer’s available supply of workers was a factor consid ered in the granting of dispensations. As many employers reported only for the workers covered by the dispensation, data as to the extent of training were incomplete; however, 252 plants reported that 9,714 workers were being trained in their plants. Women were being trained as assemblers, sewing-machine operators, mica splitters, print ing and bindery workers, and as operators of machines, such as drill presses, milling machines, power presses, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 Monthly Labor Review—January 1943 Replacement of Men by Women Only 164 of the 1,434 plants requesting dispensations reported that women were doing work formerly performed by men. The largest groups of plants reporting such replacements were in the iron and steel industry, electrical-machinery manufacture, and the production of scientific instruments. The average beginning wage rate for women replacing men was 46 cents, as compared with 50.3 cents which men received in the same jobs. Dispensations in Effect, M ay 31, 1942 On May 31, 1942, dispensations to 888 plants, exempting 224,588 men and 45,291 women from various provisions of the labor law, were still in effect. In addition, 98 plants had provisional dispensations in effect pending disposition of their requests for new dispensations or for renewal of dispensations previously granted. N » # #W # R E C R U IT IN G OF ITA LIA N M ETA LW O RK ERS GERM ANY, 1941 1 FOR IN ACCORDANCE with agreements signed early in February 1941 between the German and Italian Governments, relating to the trans fer to Germany of a contingent of Italian metalworkers, special com mittees were formed in each of the Italian Provinces. These commit tees were to study the situation of each enterprise and to present to the Provincial corporative inspectorate recommendations concerning adjustments which should be made in the organization of labor and especially in working hours so that workers might be available to work in Germany. At the beginning of May 1941, the number of workers available for transfer to Germany was below the number needed. Therefore the committees were urged to continue their activities, and supplementary instructions were issued as follows: The committees were directed to devote their attention to enterprises working fewer than 60 hours per week, and in particular to those which, for various reasons, had not indicated the number of workers they could spare. Enterprises rendering services of an auxiliary character were to be required to furnish a larger contingent. For calculating recruiting possibilities, the special conditions in each enterprise were to be taken into con sideration, also the demands already made upon it, and the technical possibility of extending the working hours. In case the workers chosen to work in Germany proved to be incapable of the work required of them or if, for any reason, they could not be transferred to Germany, the enterprise to which they belonged was to be required to furnish an equal number of other workers of the same category. * D ata are from Derecho del Trabajo (Buenos Aires), March 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment and Labor Conditions 43 CONTRACT C O ND ITIO N S OF FO R EIG N W ORKERS IN GERM ANY Rumanian Workers 1 UNDER an agreement reached between German and Rumanian authorities as a result of negotiations conducted in Berlin in December 1941, 16,400 nonagricultural Rumanian workers were to be employed in Germany during 1942. Most of these were to be young men 18 and 19 years of age, who were to be placed more especially in metal working establishments. In addition to the young workers, it was proposed to recruit 5,000 adults, preferably semiskilled workers, for industry, and 1,000 women of 18 to 30 years for domestic employment. A recruiting office was opened in Bucharest by a representative of the German Ministry of Labor. The first selection of candidates was to be made by the Rumanian Chambers of Labor, and the final selec tion, from the vocational standpoint, by the German officials. These officials were to explain the conditions of employment to the prospec tive workers and enter into an individual contract with each, one copy of the contract to be given to the worker. Rumanian workers employed in Germany were normally to receive the same treatment as German workers, with regard to conditions of employment, labor protection, and the legal protection of their rights. The German Labor Front was to have;the'responsibility of looking after their interests. Rumanian representatives were to cooperate with the German authorities in making sure that the Rumanian workers fulfilled their obligations. The Rumanian authorities had stressed the importance of enabling young workers to obtain technical training, and later, employment as skilled workers. The workers were to be gathered in groups of 25 under the leadership of skilled Rumanian workers. Accommodations were to be found for all of them in private homes, not in camps. Workers were not to be sent to Germany unless they had the necessary working clothes and good boots, and it was required that they should be medically examined before tlieir departure for Germany. Spanish Workers 2 Spanish workers wishing to work in Germany are expected to sign a contract for 2 years, and for their work are to receive from 4.80 to 7.20 German marks per day, according to instructions and information issued in Spain in 1941. Such workers are to appear in person before the employment locals of the National Syndical Office (Central Nacional Sindicalista) to present their application, and are required to meet certain specified conditions; in return they are promised, in addition to their pay, certain specified living conditions. Only males of Spanish nationality, 16 years of age or over, are accepted. The original agreement concerning this transfer of workers was signed in Berlin on May 8, 1941; the final agreement, in Madrid on August 21, 1941. By a decree of September 3, 1941, the Spanish Government established in the Ministry of Foreign Affairs a perma nent interministerial commission to handle the transfer of Spanish workers to Germany. i D a ta are from International Labor Office, International Labor R eview (M ontreal), Septem ber 1942. «D a ta are from Spanish M in istry of Labor, R ev ista d e Trabajo, Ju ly -A u g u st and October 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 Monthly Labor Review—January 1943 C O N D IT IO N S O F H IR IN G The worker is required to present photographs of himself and certain documents relating to his military service, occupation, etc.; written permission from parent or guardian is required from any worker under 23 years of age; and every worker must agree to “submit to the syndical discipline” from the time of his hiring and to send to his family at least half of the amount left from his pay after paying his living expenses. He must also provide himself with at least the following “minimum outfit” : 2 sets of underwear, 3 shirts, 4 handkerchiefs, 4 pairs of socks, 2 towels, a suit in good condition, a pair of trousers, a mesh jersey, a pair of leather boots in good condition, a pair of overalls, a cap, a muffler, a heavy overcoat in good condition, comb, clothes brush, razors, soap, etc. For the German climate it is recommended that clothing, both inner and outer, be in good condition and of adequate protection. Persons lacking any of the items indicated, in satisfactory color, quality, and workmanship, are to be supplied with these before leaving Spain, and the cost shall be charged against funds to be sent from Germany for their relatives. C O N T R A C T P R O V IS IO N S Each worker is to be informed of the conditions in the particular region to which he is to go. The workers shall sign individual agree ments with the representatives of the different German enterprises, the entire contents of which must be imparted to them before signing, and in which are specified the standards of pay, working conditions, housing, food, etc. Transportation to Germany and food during the journey are to be supplied free. Duration of contract.—The agreement for industrial employees shall be for 2 years; contracts are to be signed with specified companies for 1 year, which may be renewed for the same length of time; or with the worker’s consent he may be transferred to another similar enterprise, provided the conditions are equal or better. Rates of pay and savings—The official report states that workers’ pay varies according to locality and the kind of work performed but aver ages between 0.60 and 0.90 mark per hour which, for an 8-hour day, will amount to between 4.80 and 7.20 marks. To this pay there is to be added 1 to 2 marks per day as compensation for separation from the family. Costs of food and lodging, calculated beforehand according to the form in which they are incurred, vary from 10 to 14 marks per week, leaving “nearly always a little over 20 marks per week, an amount more than sufficient for each worker to meet his extra expenses in Germany and to send to his family in Spain amounts which can vary from 60 to 100 marks per month, which, at the rate of exchange which the National Monetary Institute automatically grants, assures the economic independence of the family.” The workers are to be given forms for making this transfer which shall assure the rapidity and safety of the transaction. Hours of work.—Working hours are not definitely stated, but the daily rates noted above are calculated on the basis of an 8-hour day. Vacations.—The Spanish workers are to have an annual vacation of not less than 21 days, spent in Spain, and computed from the time https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment and Labor Conditions 45 they reach Spanish territory. The vacation pay is to be paid in the “form which the German legislation establishes.” Living conditions.—In the camps for single men of the German Labor Front, lodging shall be furnished to large groups. The arrange ments shall be especially designed for these Spanish workers and shall include all kinds of sanitary services, equipment for sports, workers’ gardens, etc. Food shall be wholesome and abundant (the workers’ ration being higher than that for the civil population) and as far as possible shall be prepared by Spanish cooks. Social advantages.—The Spanish workers shall automatically be admitted to all the benefits of the German Labor Front, as well as to the organization, “Strength Through Joy.” Membership in the two organizations gives them (1) the protection of all the social insurance in effect in Germany, including benefits for sickness, periodical medical examinations and treatments, and full accident insurance, including accidents resulting from the war, and beginning from the moment of crossing the Spanish-French frontier; and (2) access to sporting events, excursions, art exhibitions, visits to libraries, museums, and typical places of the region, theatrical performances, special radio broadcasts, etc. Other provisions.—If the economic condition of the workers who wish to go to Germany does not permit them to dispose of their belongings in due form, they shall be given credits for them, to be discounted at a rate not exceeding 10 percent of the funds transferred to Spain. The assistance of Spain for these workers shall be assured by the presence in Germany of a Spanish delegation attached to the Embassy to see to compliance with the agreement and the work ing conditions in the contracts of the Spanish workers, making sure also that they do not lack religious assistance, and endeavoring con stantly, through provision of the necessary services, to maintain the ties binding them to their compatriots in Spain. 43- 737S 501 1 5 2- 43- ■4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Post-war Labor and Social Policies PO LIC IES FOR POST-WAR R EC O N STRU CTIO N IN GREAT B R IT A IN TWO significant documents bearing on the post-war compensation for, control of, and utilization of land have been presented to the British Parliament and issued as command papers.1 The first of the reports, dealing with the future use of land (Cmd. 6378), is the work of the Scott Committee; and the second, preparing the basis for legislation designed to remove the obstacles in the way of orderly reconstruction and development by the Government and private enterprise, and to transfer the unearned increment of land values from individual landowners to thé community (Cmd. 6386), is the Uthwatt Committee’s work. Scott Committee Report According to the terms of reference, the Scott Committee was appointed in October 1941 by the Minister of Works and Buildings in consultation with the Minister of Agriculture “ to consider the conditions which should govern building and other constructional development in country areas consistently with the maintenance of agriculture, and in particular the factors affecting the location of industry, having regard to economic operation, part-time and seasonal employ ment, the well-being of rural communities, and the preservation of rural amenities.” Scotland was excluded from the coverage, which extended to England and Wales only. In addition to the majority report, a minority report was filed by Prof. S. R. Dennison and is included in the published document. M A J O R IT Y R E P O R T To see the problems of rural development in proper perspective and in relation to the national life, the committee considered evidence outside that strictly covered by the terms of reference. It was assumed that the policy of the Government includes establishment of a central planning agency, encouragement of industry and com merce, maintenance of a prosperous agriculture, resuscitation of village and country life, and preservation of amenities. No conflict is seen by the committee between the post-war rehabilitation of industry and the preservation of the countryside, and it is believed that both aims can be “ achieved by measures designed to encourage the growth of industry in those areas where the greatest balance of 1 Great Britain. M inistry of Works and Planning Report of the Committee on Land Utilization in Rural Areas (Cmd. 6378), and Pinal Report of the Expert Committee on Compensation and Betterment (Cmd. 6386), London, 1942. Economist (London), issues of August 22 and September 19, 1942. 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Post-war Labor and Social Policies 47 advantage will result both to the prosperity of industry and to the nation as a whole.” _ . . Evidence received shows a wide variety in types ol farming in England and Wales, and the committee believes that this evidence justifies the conclusion that there will be a continuance of the mixed but interrelated character of British farming. Future changes in farming are expected to be in the simplification of farm boundaries, and in mechanization or improved methods of farm work involvinggradual reorganization, rather than in a complete change to entirely new types of farming. In the committee’s opinion a radical altera tion of the types of farming is not probable, and there will be no striking change in the pattern of the open countryside. The phrase, “ maintenance of a healthy and well-balanced agriculture, as used by officials in addressing Parliament on the subject of planning, is taken in the majority report to mean the continuance and revival of the traditional mixed character of British farming. To stop the movement of population away from the villages and country, living conditions there must be placed on a parity with those in cities. It is anticipated that the former great disparity between industrial and agricultural earnings will not recur. There fore the country dweller should be financially able to pay economic rents and to pay for education and health services. Resuscitation of village life can be attained by making such life desirable. The countryside is viewed as a heritage of the whole nation and of citizens of other countries of British descent. Its beauties are man-made through cultivation and planting, for utilitarian purposes primarily, but both the usefulness and beauty should be maintained. Pre-war trends were toward placement of industrial plants on the peripheries of population centers. Spontaneous dispersal of industry to obtain a more even distribution of plants throughout the country is likely to be too small. To prevent a harmful growth of construc tion the conditions of life in rural communities must be considerably improved and made equal to those of urban workers. Positive 'proposals—Among the positive proposals for rural housing are that each new dwelling “ should be built ready-wired for elec tricity and appropriately constructed to receive gas and water supplies even if these services are not immediately available.” Design and planning of rural housing are stated to be the province of other bodies, but the committee believes much thought is needed m the interior design of cottages. The advantages of home ownership to all sections ol the community are stressed. Farm workers should be encouraged to have cottages built for their own occupancy. For this reason the subsidy provision of the 1938 Housing Act, of £10 a year for 40 years, should be publicized. . .. . , ^ , Introduction of the bicycle and automobile m the past halt century has modified rural life. Socially the village has tended to become a loose and indeterminate unit with some residents seeking amuse ments in the nearest town, while others suffer from the decline ol local institutions owing to lack of general support. To retocus cultural life within the village itself is a major problem. A com munity or social center is advocated for every village, or at least a hall with a committee room and kitchen. Playing fields should be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48 Monthly Labor Review—January 1943 provided for every village and should not be regarded as essential only in urban centers. It has already been stated that maintenance of a prosperous agriculture after the war is assumed to be necessary. The com mittee believes this is a prerequisite to the well-being of rural com munities. War conditions have brought agriculture to the position of an essential service. Farmers and the public, the majority report states, are recognizing the importance of Britain’s oldest industry, and are determined to make proper use of land—one of the greatest national assets. Witnesses and the committee agreed that (1) the Government should formulate and adopt a long-term agricultural policy; (2) land must be properly farmed and maintained, with effective control exercised over landowners and good farming standards enforced; (3) measures should be taken to secure stable farming conditions; and (4) account should be taken of the fact that agri culture requires a considerable amount of new capital to enable it to pioduce more economically and efficiently. Evidence was also received that the nutritional needs of the nation might cause agri cultural changes. Output per man and yield per acre were found to have increased, and further rises in efficiency are anticipated by the committee on the basis of its investigation. M I N O R IT Y REPORT Professor Dennison did not agree with the majority on the inter pretation of “the maintenance of a prosperous agriculture” in relation to the well-being of rural communities and the preservation of rural amenities. His argument, he stated, was based on economic con siderations of fundamental importance. In his opinion the com munity and agricultural worker may have to pay a price, in the form of a lower material standard of life, for the pleasure of contemplating a particular kind of rural scene and enjoying the other spiritual bene fits accompanying agriculture. The whole idea of the “balance of national interest” envisaged by the majority members of the com mittee is based upon values which cannot be subjected to economic criteria. The majority report discusses a prosperous agriculture from the standpoint of size and type; but, in a progressive society, Professor Dennison points out, ultimate prosperity of agriculture depends upon increased efficiency. Agriculture is not independent of the rest of the economic system, which in turn is dependent on international exchange for ability to maintain standards of life. Therefore, in his opinion, it is generally undesirable to maintain, or limit, the size of any form of economic activity, and thus freeze enterprise at a given level. The only way to improve the standard of living is to leave land, labor, and capital free so that they may yield the fullest return, rather than deliberately to impede movements; evidence indicates that mainte nance of a large agriculture in Britain after the war may be the antithesis of a, prosperous agriculture. The minority report concurs with the majority in pointing out the need for improving physical living conditions in rural areas, but does not agree as to the positive proposals. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Post-war Labor and Social Policies 49 Uthivatt Committee Report The Uthwatt Committee was appointed in January 1941 to make an objective analysis of the subject of the payment of compensation for land whose use is subjected to public control and of compensation for its “betterment” (i. e., its potential development value); to advise, as a matter of urgency, on the steps to be taken before the war’s end to prevent developments that would be prejudicial to reconstruction. The committee was asked to consider means of stabilizing the value of land required for development or redevelopment, and any extension or modification of Government powers to facilitate acquisition of such land on an equitable basis, and also to examine the good and bad features of the methods considered and to advise what alterations are necessary in existing law. Recommendations are intended to apply to Scotland as well as to England and Wales. Adoption of necessary legislation was delayed until publication of the report here reviewed. One member of the committee, Mr. James Barr, made important reservations in con curring with the recommendations. E V O L U T IO N O F P L A N N IN G The history of planning and the type of planning organizations established in Great Britain in the past are described by the committee. Planned use of land was first given statutory recognition in the hous ing and town-planning legislation enacted in 1909. Although the terms of that legislation were limited to land in course of development or likely to be used for building purposes, the law represented con siderable social progress in that it limited the previous freedom of landowners to develop land as they pleased as long as they complied with the public health and building laws. The planning authorities under the 1909 legislation were the councils of boroughs and rural districts. A 1919 law authorized two or more such councils to form a joint committee for the preparation of a planning scheme. Existing law was consolidated, with further amend ments, in 1925, and in 1929 county councils were empowered to take part in planning by becoming constituent members of joint com mittees or by accepting planning powers relinquished by district councils. In 1932 planning powers were extended to permit the making of plans covering any land (whether built on or not) in town or country, subject to the exclusion of built-up land unlikely to be redeveloped and land so remote as not to need planning, “except where expedient to round off a scheme.” The 1932 law is still in effect and the planning powers under it are permissive only. Only a comparatively small proportion of the land area is covered by active planning schemes. There are large areas where even the first step, that of passing a resolution to prepare for a planning scheme, has not yet been taken. Moreover a planning scheme under the 1932 law is necessarily local in scope rather than national. The powers of the local authorities are largely regulatory. In the opinion of the committee, the plan thus far evolved is inadequate to secure the best social use of land. GENERAL A N A L Y S IS Assuming that national planning is meant to be a reality and a permanent feature of the administration of the country’s internal https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 Monthly Labor Review—January 1943 affairs, a central planning authority would be a necessity for effective reconstruction. It should have national as well as local considerations in mind and adequate national resources for carrying out its policies. Neither such an authority nor “planning,” as viewed by the committee, exists as yet. Two distinct problems are ¡recognized: To prevent further defacement of the countryside and a repetition and continu ation of the errors of the past; and, with respect to urban and other developed land, to remove unsatisfactory or obsolete buildings, to provide more suitable lay-outs, and to maintain adequate controls in redevelopment. A statement by the committee on principles of compensation for land acquired by the State points out that ownership of land involves duties to the community as well as rights of the individual owner. Either the complete surrender of land to the State or submission to a limitation of the rights of the user of land may be involved. Where property is taken over for use, the common law of England requires payment to the individual for the loss of property. The State pre scribes the basis of such compensation. If the State limits the use of property, the rights are not taken over by the State but are destroyed on the ground that their existence is contrary to the national interest; in such cases no claim may be made for compensation. It is concluded that a solution of the land-use problem requires a measure of unification of existing rights in land to overcome the effect of shifting value and to eliminate the conflict between private and public interest. The committee expresses objections to private pooling schemes, as they are essentially financial ventures. “The only feasible system of pooling is nationalization, which is the very result pooling is designed to avoid.” In the committee’s opinion the solution of the compensation and “betterment” difficulty can lie only “in a degree of unification of existing rights in land carried out on "a national scale and involving their national ownership.’ R E C O M M E N D A T IO N S The Uthwatt Committee recommends that land be purchased by the Government, making fair compensation to owners. Outright na tionalization is not favored, and it is recommended that land be taken over if and when needed for reconstruction and development. The land thus acquired should not be resold by the State for private de velopment, but should be leased for an appropriate number of years determined by the use which it is proposed to make of it. A distinc tion is made in the committee’s report between land which is unde veloped (not built up) and that which is developed (built up). The committee advocates Government purchase of the right of develop ment of undeveloped land. A levy should be made on the increased annual value of the developed land. According to the Economist (London): “These three principles * * * are not novel; they have their roots deep in the history of British thought about the land. But, for the first time, they have been woven into a single pattern for the utilization of the land in the national interest.” Undeveloped land.—By acquiring the development rights on un developed land, the committee believes, the Government can best lay a foundation for post-war reconstruction. Such a plan is viewed as both practicable and equitable, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Post-war Labor and Social Policies 51 We recommend the immediate vesting in the S tate of the rights of development in all land lying outside built-up areas (subject to certain exceptions) on paym ent of fair compensation, such vesting to be secured by the imposition of a prohibition against development otherwise than w ith the consent of the S tate accompanied by the grant of compulsory powers of acquiring the land itself when w anted for public purposes or approved private development. To provide this measure of unification of development rights in the State is regarded as “an essential minimum necessary to remove the conflict between public and private interest.” It is described as “a complete solution of the hoary and vexing problem of shifting values,” as the development value will have been purchased and acquired for all time. The question of compensation will therefore no longer be a factor hindering the preparation and execution of proper planning schemes. Developed land.—With respect to developed land, piecemeal transfer for public purposes is stated to be less cumbersome and less onerous than immediate wholesale nationalization. To facilitate improve ment in built-up areas it is recommended that public authorities be given much wider and simpler powers of purchase than are provided under existing legislation. Under the existing system of ownership it will always be costly to obtain land for public planning purposes, unless confiscatory measures are employed. The committee assumes, however, general acceptance of the theory of fair compensation to private holders. In planning, the ideal is that the work be undertaken free of financial considerations. Under the existing plan, local authorities are primarily responsible for planning, and plans suffer accordingly from lack of funds. Suitable financial arrangements are imperative if planning schemes are to be fulfilled efficiently. As sound planning does not destroy total land values but merely redistributes them, the ultimate cost may be reduced by recoupment from other sources. Much of the financial benefit will accrue to the public purse, but in the course of development increased values may still accrue in part on laud still remaining in private ownership. Therefore, the committee recommends “a scheme for the imposition of a periodic levy on increases in annual site value, with the object of securing such betterment for the community as and when it is realized, enjoyed, or realizable.” By this method potential development values may be realized without hampering individual enterprise in land development. The levy is not to be payable in respect to land on which the development rights are to be acquired under any ‘'develop ment rights scheme” as long as the land remains undeveloped. Determination and method of payment of compensation. The market value at the date of acquisition is specified as the general basis for determining the compensation to be paid. Any increased value or element of value is to be excluded which arises from the actual or possible demands for land by any Government department, local oi public authority, or any statutory entrepreneur. The exclusion is to apply both in case of compulsory acquisition and also under the “development rights scheme.” One member, Mr. Barr, did not concur in the recommendation for such exclusion. The committee’s interim report recommended that compensation payable in respect to the public acquisition or public control of land should not exceed sums based on the standard of values as of March 31, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 Monthly Labor Review—January 1943 1939. This recommendation is continued in the final report under review. Compensation.—Compensation to be paid by the Government for land should be taken from a general compensation fund, the report concludes. The amount payable should be assessed for the country as a whole. A single sum, called the general compensation fund, should be determined, based on the fair value, and the amount should be divided among the claimants in accordance with the value of the development rights attached to their lands. (Precedent for this method of financing purchase exists under the scheme for nationali zation of coal-mine royalties.) A supplemental fund would meet exceptional cases. If compensation were based on piecemeal valua tion, the element of “floating value” would be included in each valua tion, and more would be paid than the worth of the rights acquired. The payment, if made piecemeal, would be two or three times too much, the report states. Provision of a lump sum to cover compen sation is advocated not merely because land is to be acquired from many people, but because of the peculiar nature of the interests to be acquired and the impossibility of correctly adjusting floating value under a piecemeal plan of acquisition. Administration.—The central planning authority under the plan recommended would be . a “Minister for National Development” especially responsible for national development. He should have no departmental duties but should have the advantage of a highly qualified staff. Broad principles of policy would be settled by the Cabinet after consideration by a Cabinet committee presided over by the Minister for National Development. The actual execution of the schemes and formulation of detailed plans would be the duty of the governmental department concerned. The planning functions of the Minister of Works and Planning who functions under existing legislation, as it appears to the Uthwatt Committee, would fall within the province of the proposed Minister for National Development. General matters connected with de velopment of land should be kept under a single direction and should be under the proposed new minister. A commission like the War Damage Commission would be most suitable to handle day-to-day administration and to see that local authorities, private developers, and landowners have ready access to informed advice and authoritative direction. Such a commission should have definite powers, including those arising under the Town and Country Planning Act and development rights scheme. The Minister for National Development should be empowered to give directions to the commission. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Women in Industry O PIN IO N ON W O M EN ’S WAGES IN AUSTRALIAN M ETA L TRADES A JUDGMENT covering rates of pay for female employees under the metal-trades award of Australia was delivered on August 17, 1942, in which the judge held that he did “ not regard comparative productivity of itself as being a proper basis for the fixation of wages. Disabilities, mental and physical, which are associated with the per formance of work may be greater in the case of one sex than in the case of the other, and such disabilities are a material factor in fixing rates of wages. The claim for equal pay is rejected for the reason already stated and * * * it would be opposed to the wartime economic plan to transfer to such a large number of employees an increased purchasing power which they could exercise only at the expense of the other and possibly more needy employees. ” 1 Conflict in Opinions of Tribunals In the judge’s order, reference was made to overlapping tribunals dealing with employment of female workers. The dispute regarding women’s wages in the metal trades was finally settled by the order which is here reviewed. In announcing the terms of a provisional or interim award on July 9, 1941, the judge had stated that the wages established were tentative and would be reviewed later when the whole question of female employment was under consideration. There had been no reason to suppose at that time that the functions of regulating the employment of women would be divided among several different authorities, as proved to be the case under the National Security (Employment of Women) Regulations. The judge stated that if the latest amendments to the regulations have the meaning which the Women’s Employment Board must be regarded as having placed upon them in the munitions-factories decision, they apply to a far wider field than that of women actually replacing men who have been taken out of industry by the war. The ISlational Security (Employment of Women) Regulations, he stated, now require an employer to obtain permission from the Women’s Employment Board to employ women on work which they previously were permitted to do under Arbitration Court awards. As a result, such work is allowed in some instances and prohibited in others, and the court must settle disputes of which it has cognizance. With different bodies making varying decisions, discontent and dis putes arise. The judge rendering the decision under review confessed 1 Victorian Employers’ Federation. Industry and Trade: The Employers’ M onthly Review, Mel bourne, August 1942 (pp. 155-158). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53 54 Monthly Labor Review—January 1943 a complete lack of confidence that it would be possible in future to convince one female worker that she should work at the rate of pay specified for females, while another woman received the rate specified for male workers. Lines of demarcation for the payment of higher wages are by no means easy to ascertain. Under the Employment of Women Regulations the adult male rates come to be paid generally, irrespective of sex. If the doctrine of comparative efficiency without regard to the economic effect is carried to the limit, the judge stated, he saw no reason why junior male workers, apprenticed and unapprenticed, should not be entitled to ask for wage fixation on the same basis. Equal wages regardless of sex may be argued for, he said, if they are fixed on a true economic basis and if the responsibility for a mini mum family wage is transferred from employers to society generally. Australia’s adoption in 1941 of a system of universal child endow ment might mean that it has progressed far toward wage determina tion based upon the value produced by the employee. Women might earn more and men less under such a method, but in the judge’s opinion such a system of wage payment “ is unsound for so long as the responsibility for the minimum family wage has to be borne by the employers.” Women s Work Dealing with the question of the class of work on which females may be employed, the judge stated that the court’s practice has been to specify the work on which they may be engaged. This procedure has had the twofold advantage of preventing women’s employment in unsuitable occupations and of safeguarding the position of male employees. Wartime regulations such as those dealing with dilution of labor and the employment of women made it unnecessary for the court to concern itself at present with the latter aspect of the question. Regarding the prevention of employment of women on unsuitable work, the matter can be regulated under existing circumstances by allowing their employment where it will not infringe any regulations under the National Security Act rather than by making a detailed statement of permitted work. The understanding is that they will be employed only on work to which they are suited and subject to certain safeguards provided by a special board of reference. Hesi tating to speculate as to the future, the judge nevertheless believed it extremely unlikely that women will be introduced in great num bers in many divisions of the metal industry. They are excluded from most of the crafts under the terms of the dilution regulations, and the nature of the work would exclude them from many occupa tions where heavy materials are handled. He anticipated the con tinued employment of females in mass production and proposed to deal with women’s problems on this basis, stating there would be nothing to prevent the court from correcting any matters which would require correction. Equal P a y Having rejected the formula of equal pay for both sexes, the judge set wages at a rate he considered “ to be fair and reasonable for the work as performed by females.” Flat ‘rates were specified on the assumption that they would in the aggregate work out fairly and be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Women in Industry 55 more conducive to efficiency than a detailed classification. Material alterations were made in the scale of pay for juniors. As competition between employers had been largely eliminated, no reason was seen for continuing to provide more than one rate of wages for junior females under 18 years of age. As a result of applying a single rate instead of a graduated scale, females of 16 years of age and under will receive a higher rate of pay than junior males of corresponding ages. This was justified on the ground that there is not the same difference between the work of the younger and more advanced females that there is in the case of males in these age groups. Adult females are to be granted a higher rate of pay 3 months after entry into the industry, on the ground that they gain efficiency with service; the 12-month period of experience formerly required was held to be unnecessary. All the rates were increased by the decision. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Youth in Industry POST-WAR EM PLO Y M EN T OF JU V EN ILES IN GREAT B R ITA IN IN a memorandum on the problems of post-war entry of juveniles into employment, the London Regional Advisory Council for Juvenile Employment stresses the need for the fullest cooperation between employer associations and trade-unions to insure the status of juveniles as participants in industry and to prevent their entry into blind-alley occupations.1 The council maintains that “ we shall never see the problem of youth in industry in its proper perspective or set to work on the right lines for its true good until we grasp it as essentially a question of entry into employment.” Employers must consider the position of young employees as an integral element in the management and organization of their business. No aspect of the reconstruction problem can be more vital than that concerned with the welfare of youth and, the council states, it may be safely asserted that if this part of the problem is not dealt with satisfactorily, the rest will be in vain. To avoid any failure to recognize the importance of dealing with juveniles in industry, the London Regional Advisory Council for Juvenile Employment issued the memorandum which is here sum marized. This body was formed in 1934 and superseded the London Advisory Council. The council is appointed by the Minister of Labor. Its jurisdiction covers a territory of more than 250 square miles, and it deals with many and varied aspects of the industrial and commercial life of inner and outer London. Membership consists of representa tives of education authorities, juvenile advisory bodies, employers, employees, teachers, and other interested persons. Creation of the council was a recognition of the expanding limits of London, bringing about a merging of the problems of nearby communities with those of the city proper. In forming the council it was not intended to inter fere with the administration of “ choice of employment powers” by each unit of the region, but to watch over their operation. Training of Juveniles In the memorandum account is taken of the double problem— education and industry. The group of juveniles may be called the 14- to 18-year group. It is reasonably expected that the school leaving age after the war will be raised to 15 without exemp tions, and possibly 16, and for those beyond the school-leaving age compulsory day continuation classes may be established. Training 1Great Britain. Ministry of Labor and National Service. London Regional Advisory Council For Juvenile Employment. Memorandum on the Problems of Post-War E ntry of Juveniles into Employment,' .T n rm 1Q/19 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Youth in Industry 57 must be given for life, that is, for citizenship in the broadest sense. In training juveniles for a livelihood no attempt should be made at such training except in schools directly concerned with technical training. Some acquaintance should be given in the regular schools, however, with elementary processes performed in works, offices, shops, etc. Consideration should be given to the possibility of furnishing occupa tional guidance in the schools by suitably qualified teachers and for the training of these teachers in colleges and by such bodies as the National Institute of Industrial Psychology. Part-time day continuation schools, although related to the fife of the pupils, should not lose sight of the main function, namely to continue general education for citizenship. Day continuation schools have not been popular in the past. Where created voluntarily, investigation showed that they did very good work. Success de pended upon recognition of their value by employers. Under a com pulsory post-war system, the fullest cooperation of employers would be required. The problem of fitting part-time education into the operations of small employers and small working units is almost insuperable, in the opinion of the council. However, a solution must be found, as an all-inclusive system is necessary to thé success of a part-time education scheme. Industrial Aspects Opinions differ as to whether juveniles should be made aware immediately of their membership in the society of adult labor or maintained as a separate group and given an extended period of education. The council believes that the best interests of youth will be served, both in adolescence and future life as wage earners, if the view is accepted that juveniles are potential producers in a competitive world. The officer for juvenile employment is the best qualified per son to make suitable liaison with the factory and business. He has knowledge of the demands of industry and commerce, and experience in selecting young persons for employment. In considering the relative claims of industry and education, the council is hesitant to dogmatize. To reconcile any difference, it is suggested that the position of juveniles in industry should be viewed from the broad standpoint of entry into employment, which is a continuous process, the young person moving by degrees from school life into the sphere of youthful work and later into a wider world of adult labor. Special Considerations Among the special matters referred to, in which improvement is desirable when juveniles enter industry, medical examination is mentioned. A case is made for extending school medical service for the well-being of minors, insuring them a continuation of the service to which they have become accustomed and which they trust. By extending medical examination to insure that all juveniles are physically fitted to enter the employment they choose, the council believes that the value of preventive measures would be recognized. Correlation of welfare work in industry with the needs of young workers is urged. Research is advocated to determine the optimum length of the working week, time spent in classes, rest periods for a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 Monthly Labor Review—January 1943 wide range of occupations, and separately for boys and girls under 18 years of age. The whole problem of transportation should be studied, to alleviate fatigue entailed in journeys to and from work The tendency to belittle the manual crafts and to encourage em into office work is mentioned. It is stated that among the reason^ for this situation is the desire of parents to find greater security for their children than they themselves have found in manual work. To offset this tendency the former pride and status, «of craftsmen should be restored. Vocational training should be based on expert sifting and guidance and on liaison with those responsible for appren ticeship. Mechanization has brought about a shift in the proportion of men and women in office work and it is important that education authorities should realize the demand for women’s talents is increasing. In the transition from war to peace, it is suggested not that juveniles should be kept at school merely to prevent them from entering the labor market but that they should be retained for the time necessary to secure a regulation of their flow into industry, and thus avoid industrial chaos. The difficulties of older juveniles will require the most sympathetic consideration and the advice of experts. The Essential Work Order may contain elements of permanent value, especially for juveniles. No one can know what factory develop ment will occur outside the London region after the war or whether Greater London will retain its industrial preeminence. Surveys should be made of the industrial region and of the juvenile popula tion of the city, so that estimates of industrial possibilities and available labor supply may be made. Questions of increasing significance are the need of a new outlook on the question of apprenticeship, of greater labor mobility to meet unexpected changes in economic organization and location of industry, and of insuring that learners shall be equipped with the adaptability to meet the demand of any sudden shift to new materials and tech nique. Education and industry should work together to solve these problems. It may not be in the interest of young persons to press for too rapid a development after the war. A period of constructive delay is advocated, which must not be allowed to degenerate into inactivity. The waiting period should be put to creative use by education authori ties. The council is of the opinion that it should not suggest lines of change to teachers, but recommends an interchange of experience among all interested parties. The council would welcome any scheme calculated to insure the growth of a sympathetic under standing by teachers and educational administrators of the needs and problems of business and industry. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations T* p >+++++*+**+*+++++++++++++++++++++++*+++*+++++**+++*******+*+++*+***+** DECISIONS OF NATIONAL WAR LABOR BOARD, AUGUST AND SEPTEMBER 1942 1 DURING the period from August 1 to September 30, 1942—the period just preceding the Executive Order of October 3, 1942, to stabilize wages 2-—the National War Labor Board issued several sig nificant decisions on the question of wages, union security, and other issues in disputes which threatened to interrupt war production. On wage questions, the Board in general applied the yardstick of the “Little Steel” formula which allows wage increases up to 15 percent to restore purchasing power lost through cost-of-living increases between January 1, 1941, and May 1942, the time of the President’s message to Congress outlining the wage-stabilization policy. In cases involv ing union security, the Board continued to grant “maintenance of membership” clauses in many cases. Other issues decided by the Board included shift differentials in pay, equal pay for equal work, and vacation allowances. Wage Disputes Cost-of-living adjustments.—The Board by unanimous decision ex tended to the 250,000 employees of the U. S. Steel Corporation the same 5^-cent hourly increase and daily wage guaranties granted in the “Little Steel” case.3 By a vote of 8-4, employer members dis senting, the increase was made retroactive to February 15, 1942, “in order to maintain the same wage relationship which has existed in the steel industry since 1921.” Also in accordance with the “Little Steel” formula, 225,000 employees of the General Motors Corporation were granted an increase of 4 cents an hour. In taking this action the Board rejected, by a vote of 6 to 3, the request of the unions that the Board calculate the increased cost of living on the basis of the average increase in the cities where the plants are situated instead of the national average. Wage inequalities within an area or industry.-—In the application of the “Little Steel” formula the Board has given “due consideration” to “inequalities” and the elimination of substandards of living, as required by the President’s wage-stabilization program. In a unani mous decision the Board ordered certain wage adjustments and in creases for 400 skilled employees of 13 jobbing machine shops in St,, Louis, Mo. The Board accepted the findings of its investigator who said: “In the interest of stabilizing the labor market in these shops, 1For an analysis of significant decisions issued prior to August 1, 1942, see M onthly Labor Review, June 1942 (p. 1344) and September 1942 (p. 484). 2See M onthly Labor Review, November 1942 (p. 917). s See M onthly Labor Review, September 1942 (p. 487). 59 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 Monthly Labor Review—January 1943 increases are required in the relatively low-rate shops. This can best be accomplished by an increase in the minimum-wage scale.” 4 In another case the Board unanimously raised the wages of 61,000 workers in 40 New England and 11 Southern textile mills by 7% cents an hour. In its opinion the Board noted the “virtual unanimity of opinion held by all interested parties that significant wage increases should be provided.” The opinion further stated: The factor which appeared to the Board to be most significant in the resolving of this case was the need for wage increases as a means of bringing the wage rates of the subject mills in line w ith established rates in other mills in th e cottontextile and in related textile industries. I t was concluded by the Board th a t the elimination of such inequalities in the wage rates of the subject mills, prim arily in relation to other mills in the same labor m arkets, is necessary in order to stabilize the wages of cotton-textile employees. In some instances the test of “inequality” caused the Board to refuse wage increases. Thus, the Board unanimously refused to grant a general wage increase to 1,750 employees of the Lever Brothers Co. despite the fact that their increases between January 1, 1941, and May 1942 had totaled less than the 15-percent increase in the cost of living. The Board’s action followed the unanimous recommendation of its mediation panel which reported that strict application of the Board’s 15-percent yardstick would call for increases in both the Cambridge and Edgewater plants of the company. The panel pointed out, however, that the average hourly wage rates at both plants were above those of comparable plants in the respective areas. The panel’s report to the Board noted: Under the circumstances then, if the undersigned are “to give due consideration to inequalities” and are to avoid a “round of general increases” in this particular area and in this industry, they cannot make any recommendation which would either create an unequal relationship where one does not now exist, or intensify an existing inequality. In the light of the guiding principles adopted by the Board in the “L ittle Steel” decision, then, the panel is unanimouslv of the opinion th a t no wage increase is w arranted a t this time. * * * Ju st as it is impossible to reconcile this formula with the preservation of a wage differential for comparable jobs in a given industrial area, so is it equally impossible to reconcile the formula w ith the broadening of such a differential. Substandards oj living.—A further interpretation of “substandard” wages was included in the Board’s opinion in the General Cable Co. case. In denying a general wage increase the Board said: * * * The panel found th a t the wages received by the employees could not be considered as substandard because the existing minimum rates for male employees a t the Bayonne plant are 78 cents per hour and for women employees, 60 cents per hour. * * * The record shows th a t the starting rates a t the Perth Amboy plant are 72 cents per hour for men, and 54 cents for women. Such rates of pay do not entitle the union to an increase. * * * The Board has made clear th a t by substandard wages it means wages which do not perm it of the m aintenance of a standard of living of health and decency. The wages paid the employees in this case do perm it of such a standard of living. North-South differences in wages.—The question of eliminating the wage difference between northern and southern textile plants received consideration by the Board in the textile case noted above. In its unanimous decision covering 40 New England and 11 southern mills, 4An unusual feature of this ease was the approval by the Board of a plan, agreed to by the companies and the union, under which all employees earning $1 an hour or more would be directed to subscribe to the war-bond pay-roll-deduction program to the extent of at least 10 percent of their earnings. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations 61 the Board, by granting the same general increase, refused to alter existing differences. The opinion stated: In the textile cases under consideration the Textile Workers Union of America, C. I. O., which represents the employees in 28 of the New England mills and the 11 southern mills, had requested a general wage increase of 10 cents per hour in the N orth and of 20 cents per hour in the South. I t was urged th a t such ad ju st m ents were necessary in order to eliminate a regional differential in wage rates. While not acquiescing in the wage increases requested by th e union, the northern mills joined w ith the union in requesting such wage increases as would eliminate th e regional differential. * * * . . The fact remains, however, th a t a N orth-South differential in wages is not an unusual relationship. On the contrary, it is a long-standing relationship. Even if all of the facts were available to appraise the cost significance of the differential for comparable jobs, which is not the case, one would have to weigh the issue w ith care. Operating to a large extent as a war industry, there has been a marked change in the over-all com petitive picture. There is little merit, indeed, to a proposition to readjust the differential now, primarily in preparation for post war competition, a t the cost of increasing 80 percent of the industry’s employees who work in the South beyond th a t point which is now necessary to stabilize wages in th a t area. Such an approach would be an u tte r disregard of the respon sibility of the Board to stabilize wage rates in conformance w ith th e national stabilization program. In a separate concurring opinion, the labor members of the Board disagreed with the reasons advanced by the majority for refusing to eliminate the differential: We believe it incum bent upon us, however, to express our disapproval of some of the reasons advanced in the Board’s opinion. T h at opinion points out th a t the regional differential in wages is not an unusual relationship and is of long standing. The age of an inequality may increase the difficulty of its elimination, b u t is not a justification for its existence. This is another aspect of the businessas-usual policy to which this Board should not, even indirectly, give its benedic tion. The proper wage policy for w artim e should not be fixed by pre-war customs or fears of post-war complications. An inequality in wages paid for comparable skills on comparable jobs must, in any system perm itting a mobile labor supply, be an unstabilizing factor. Aside from the p atent injustice of condoning the con tinuance of such practices, the effect on the manpower problem of the N ation, m these critical times, of freezing regional differentials m ust be obvious. Wage classifications.—While granting or denying general wage increases, the Board has in several cases also considered the problem of job and wage classifications, and has issued directive orders that steps be taken to correct inequalities within the plant wage structure. For example, in the Brown & Sharpe Manufacturing Co. case the Board directed the company to standardize and simplify its wage schedule. The change in methods of wage paym ent is necessitated by the undesirable results of the prevailing system under which employees may jturn out the same production on identical machines while receiving different rates of pay. ouch inequalities in the treatm ent of different employees has understandably been the source of grievances which tend to reduce the maximum productive efficiency which is so urgently necessary in this tim e of war. d h e Board fails to find any valid justification for continuing a wage schedule which specified differentials in base rates for identical or closely similar occupations. On th e contrary, the Board is convinced th a t such a condition is not conducive to maximum, production. The establishm ent of the simplified and standardized wage schedule, as directed by the Board, can be an im portant factor in developing improved efficiency and b etter industrial relations in this vital war plant. Nor will the highly desirable standardization of rates result in any significant increase in th e company’s to tal wage bill. The standardization program is to be gradually accomplished by adjustm ents made in some occupational groups upon the issuance of the diiective order, in others on October 15 and in others on December 15. As th e panel clearly points out, the adjustm ent in the wage schedule for standardization pur poses will in large p art supersede the normal company policy of making 200 to 300 individual increases per m onth, a t least until standardization of rates is 50 1152— 43 — 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62 Monthly Labor Review—January 1943 completed on December 15, 1942. Thereafter, the union m ust expect a slower tempo of individual rate adjustm ents than the company customarily awarded in accordance w ith the present “m erit” system. Shift Differentials The question of wage differentials for second and third shifts (afternoon and night work) was an issue in a number of cases before the Board during August and September 1942. In several cases night differentials were granted and in a few instances they were denied to all or particular groups of employees. Selected cases illustrating some of these decisions are summarized below. The Board extended the shift premiums now paid in several plants of the Aluminum Co. of America to additional plants of the corpora tion 5 except for continuous-process workers. With regard to these, the Board stated that “this matter is subject to study and considera tion as to whether or not it constitutes an inequality for the continu ous-operation employees of the company.” In the case of the General Cable Co. (in addition to the wage issues discussed above) the union asked for extra pay of 5 cents an hour for employees working on the two night shifts. The Board, by a vote of 7-2, two labor members dissenting, adopted a recommendation of its panel that a differential of 3 cents per hour for all night work be granted. The panel report stated: A night differential will in the panel’s opinion be an incentive to those workers who have altered their regular living habits in order th a t continuous 24-hourper-day production m ay be m aintained. * * * The union stated th a t the night-shift workers have suffered a financial loss in th a t there has been added expense in m aintaining their homes, citing as an example the need for serving extra meals. * * * The panel is of the unanimous opinion th a t an' increase of 3 cents per hour should compensate the workers for w hatever added expense they have sustained and for the inconvenience and disruption of their ordinary living habits. In the Cambridge Tile Manufacturing Co. case the union asked, among other things, for a differential of 5 cents per hour on night work. The Board, by a 5-4 vote, adopted a panel recommendation that no differential be granted, for the reason that— The question of a wage differential for night work is not regarded by the panel as a m ajor one. I t is apparent th a t the only regular night work is performed by continuous-process workers who would in any event not come w ithin such a provision. Social and physical considerations which in m any cases m ight be a dom inant factor have little application in this case. Therefore, the panel recom mends th a t no provision for a night differential be included. Public member, Wayne L. Morse, and three labor members of the Board dissented. In a minority opinion, Mr. Morse stated that he still held to the views which he expressed in his dissenting opinion on the same issue in the Aluminum Co. of America case, namely—The minority is impressed w ith the argum ent th a t premium wage rates should be paid for night work not only because of the fact th a t night work is disruptive of normal living habits but also because night work is essential to increasing production of American industry. Hence, premium rates for night work will serve as a work incentive and will tend to induce a larger num ber of American workmen to accept night-work assignments. This is particularly desirable during this war period because one of the prim ary needs of America today is to produce the greatest quantity of war materials in the shortest period of tim e for use in the prosecution of our war effort. However, the minority wishes to have « See Monthly Labor Review, June 1942 (p. 1345). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations 63 it distinctly understood th a t it favors premium wage rates for night work even during peacetime economy. * * * The record of this case shows th a t the num ber of woman employees of the company has been increased. As the m onths go by during this war period, more and more women will have to be called upon to work in war production plants, and m any of them will undoubtedly be assigned to night shifts. The standard reasons justifying extra pay for night work when performed by men, namely, those referring to health, expense, and detrim ental effects upon normal living, are even more applicable to the night employment of women. The Board, by a vote of 4-2, the employer members dissenting, directed the Towne Robinson Nut Co. to replace its present system of rotating shifts by a system of steady shifts and to grant 5 cents per hour additional compensation to those working on the second and third shifts. The Board’s order provided that in making shift assign ments, employees with the longest seniority should receive first choice of shifts. The Board said: The determ ination of shift arrangem ents is a question which would be con sidered by the Board only under unusual circumstances. Shift arrangem ents are preeminently a m atter for decision by local m anagement or, if made the subject of collective bargaining, for agreement between those representatives of m anagem ent and labor who are intim ately acquainted w ith the operational problems and requirem ents of the plant as well as w ith the circumstances and desires of the employees. I t should, therefore, be clearly understood th a t in specifying a change from a system of rotating shifts to a system of steady shifts a t this company, the Board is not setting a precedent or laying down any general rule. Our decision and our willingness to enter an order on the question a t all are based on the peculiar facts of this case. The plant is small, employing only 108 employees. The change of shift arrangem ents in a plant of this size can be effected rapidly and w ith no serious difficulty.' In such a small grouD of employees, there can be a virtual unanim ity r f desire for a certain system. Of m ajor importance to the Board in this case is the fact th a t the company has never claimed th a t the change would in any way adversely affect its operations. Its sole contention has been th a t, in spite of the contrary statem ents of their leaders, the employees did not desire the change. On th a t issue the Mediation Officer had reason to accept the testim ony of the employee representatives. They asserted th a t the employees were intensely dissatisfied w ith the rotating-shift system, th a t it made it impossible for them to make any regular adjustm ent in their living conditions, and th a t a t a recent meeting of employees the desire for steady shifts had been unanimously ex pressed. We believe th a t the institution of steady shifts a t this plant will result in improved morale and will assist increased production. In the absence of any evidence th a t the change would be difficult to effect or prejudicial to plant opera tion, the Board has ordered it. Equal P ay for Woman Workers The National War Labor Board has generally adopted the policy of “ equal pay for equal work.” This clause was ordered inserted in several agreements without comment by the Board. In the Brown & Sharpe case, however, a detailed discussion of the problems in volved in establishing this principle was contained in the written opinion. Excerpts from this opinion appear below. The N ational W ar Labor Board has accepted the general principle of paging wages to female employees on the basis of “equal pay for equal work.” There should be no discrimination between employees of equal ability employed on similar work where production is substantially the same. This is no new principle. I t was enunciated by th a t War Labor Board which was set up in 1917 to meet the industrial problems of the World W ar of th a t earlier date. In the MarlinRockwell case, the N ational Defense M ediation Board made a decisive step tow ard economic equality for women. In the Norma-Hoffman case, the present N ational W ar Labor Board held th a t “when women take th e places of men and fully perform all of the tasks previously performed by men, they shall be paid the same wages as the men thus replaced.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64 Monthly Labor Review—January 1943 * * * In treating this question in the present case, the panel has recom mended, in part, th a t “rates of pay for female employees will be based upon the established rates for the work performed. Where such work is identical with, or substantially the same as, th a t performed by men on the same or comparable operation, the base rates and hourly rates will be th e same.” The wording of the above-quoted section indicates the im propriety of using slight or inconse quential changes in job content or in method of operation as a sole reason for setting up a wage differential against women employees. W age-setting on such a basis is considered by the Board to be discrim inatory and hence not compatible with the principle of “equal pay for equal work.” The Board approves the above-quoted wording as recommended by the panel w ith the proviso, however, th a t it cannot be interpreted solely in relation to the physical characteristics of the operation performed. I t m ust also be related to th e quality and quantity - of production turned out. Female employees assigned to th e same operation which has been or which is performed by men should receive the same pay when they produce the same quantity and quality of output. Any differential which results in lower pay to women under such conditions would be discriminatory. On the other hand, where lower production or decreased performance standards m ust be established for women as compared w ith men, a proportionate ad ju st m ent of wages for women is compatible w ith th e principle of “ equal pav for equal work.” In its recommended clause, the panel takes specific cognizance of th e fact th a t it is often impossible or inadvisable for female employees to undertake heavy physical labor which has been established as a p art of certain jobs when they are performed by men. In such cases, the employment^of women workers may entail extra supervision, extra set-up men or additional carry-off men. The panel suggests th a t such “ extra labor costs will be com puted and will be given pro-rata weight in establishing an equable rate of pay for female workers.” The Board points out th a t such an adjustm ent of wage rates is in line w ith the “equal pay for equal work” principle when it is necessary to prevent an increase in unit labor costs. On the other hand, the assignment of the heavy parts of a job to men may be a division of work and a specialization of tasks which may, frequently be made w ithout any increase in unit labor costs even though the female employees continue to receive the established rate for the operation. In other words, such a m ethod of performance may perm it an increased production which offsets the added cost of the additional employees. In such cases, there is no sound basis for setting a differential rate against the female employee. I t is pointed out th a t such a division of tasks has often been used on jobs m anned entirely by male employees as a means of reducing unit costs while maintaining hourly rates. There are sound reasons, therefore, for guarding against the use of the procedure to cut women’s rates when the “extra” labor for heavy work does not increase unit costs of production. The previous discussion indicates some of the im portant factors which m ust be taken into account in equitably effectuating the principle of “ equal pay for equal work.” This m atter cannot be autom atically disposed of by any clause in a labor agreement no m atter how carefully it may be conceived. TTe principle of “ equal pay for equal work” for women m ust be worked out in individual situa tions by parties who cooperate in good faith to secure the desired objectives. Even under such circumstances, there may be honest differences of opinion. I t is in recognition of this fact th a t the panel in this case has provided th a t any dispute regarding the rates established for women employees will be treated as a grievance and will be handled through the established grievance procedure which provides for ultim ate determ ination by an im partial umpire. Union Security y During tlie period August 1 to September 30, 1942, the Board continued to grant maintenance-of-membership clauses in many cases. However, in three cases such security was denied to unions because of “ irresponsibility” of leadership reflected in recent work stoppages. In most cases the granting of maintenance of membership repre sented a compromise between the union’s demand for the union shop and the existing sole bargaining recognition. In one case, however, that of the Pioneer Gen-E-Motor Co., a maintenance-of-membership https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations 65 clause was granted despite the fact that the company had operated for 3 years previously under a closed-shop contract. In this case the local union which had the closed-shop contract had changed its affiliation and the employer had objected to a closed-shop contract with the new union. in four cases decided during August and September maintenance-ofmembership provisions were granted by unanimous vote of the Board. In two there was a dissent of labor representatives who felt that a stronger clause should have been granted. In the majority of the union-security cases, however, the vote wras divided, with one or more employer members opposing thé membership-maintenance principle. Because the arguments for and against the [maintenance-of-member ship principle were thoroughly presented in two previous articles,6 they will not be repeated here, except as they apply to the facts surrounding some of the individual cases. The 11standard” clause.—The type of maintenance-of-membership clause granted most frequently includes the 15-day “ escape” period, during which union members may resign if they so desire, and a stipulation by the union that it will not coerce employees into mem bership. This identical clause was used in the great majority of cases decided during the 2-month period and is reproduced below in full as it was stated in the Norma-Hoffman Bearings Corporation case. In order to secure the increased production which will result from greater harm ony between workers and employers and in the interest of increased cooper ation between union and management, which cannot exist w ithout a stable and responsible union, the parties hereto agree as follows: All employees who, 15 days after the date of the N ational W ar Labor Board’s directive order in this m atter, are members of the union in good standing in accordance w ith the [constitution and bylaws of the union, and all employees who thereafter become members, shall, as a condition of employment, remain members of the union in good standing for the duration of this contract. The union shall prom ptly furnish the N ational War Labor Board a notarized list of its members in good standing as of the fifteenth day after the date of the N ational War Labor Board’s directive order in this m atter. If any employee nam ed on th a t list asserts th a t he withdrew from membership in th e union prior to th a t day, and any dispute arises, or if any dispute arises as to w hether an employee is or is not a member of the union in good standing, the question as to w ith draw al or good standing, as the case may be, shall be adjudicated by an arbiter appointed by the N ational War Labor Board, whose decision shall be final and binding on the union, the employee, and the company. The union agrees th a t neither it nor any of its officers or members will intim i date or coerce employees into membership in the union. If any dispute arises (as to w hether there has been any violation of this pledge or whether any em ployee affected by this clause has been deprived of good standing in any way contrary to the constitution and bylaws of the union), the dispute will be re garded as a grievance and subm itted to the grievance machinery, and, if neces sary, to the final determ ination of an arbitrator appointed by the N ational War Labor Board in the event th a t the collective-bargaining agreement does not pro vide for arbitration. The “standard” clause with check-ojf.—The Board, by a vote of 8-4, employer members dissenting, extended to the employees of the U. S. Steel Corporation the same maintenance-of-membership and check-off provisions as were granted in the “Little Steel” decision on July 16.7 This clause is virtually identical with that of the Norma-Hoffman 6See Monthly Labor Review, June 1942 (p. 1347) and September 1942 (p. 488). 1 See M onthly Labor Review, September 1942 (p. 495). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 Monthly Labor Review—January 1943 case except that it includes a provision for the check-off of union dues and initiation fees for all union members. In a few other cases, notably the Bethlehem Steel Co. (Shipbuilding Division) case, a voluntary check-off was granted under which the company is to deduct initiation fees and union dues of union members who individually and voluntarily certify in writing that they authorize such deductions. In its opinion the Board outlined the reasons for such check-off provision: Adoption by the Board of the m ajority recommendation of the panel in this particular was based, to no small extent, upon the fact th a t the check-off of union ?mfSMof-Vaili l1! °ther divisions of the company as a result of previous action of the National War Labor Board. I t was fully recognized th a t the Board had already participated in developing union-security procedures in a number of east coast shipyards through mamtenance-of-membership rules b ut w ith no check-off provisions l o r this reason, the Board emphasizes th a t the union-security pro visions, determined in this case involving the Bethlehem Steel Co., Shipbuilding Division, rest primarily upon company practice as set forth by the Board in an earlier case. In other words, the determ ination in the present case is based upon its particular and somewhat exceptional circumstances. Other types of maintenance-of-membership clauses.—In the case of three logging and lumber companies in Marshfield, Oreg., the Board departed somewhat from the “standard” membership-maintenance provision The 15-day “escape” period was omitted and a clause was added m which the employer agreed to recommend that all eligible employees join the union after a probationary period of 40 days. In ordering this clause, the Board approved the recommendation of its panel which pointed out that such a clause “had now become uniform throughout 75 percent of the northwest lumber industry.” The vote m this case was 8-1, an employer member dissenting. r £yPe °f maintenance-of-membership provision granted in the Dallas Manufacturing Co. and Golden Belt Manufacturing Co. cases reverts to one of the earliest of the Board’s union-security decisions.8 It is dissimilar to the majority of later cases in that only those mem bers who individually agree in writing are bound by the maintenanceof-membership and check-off provisions. The Board’s opinion in these cases pointed out that similar clauses had been arrived at in other southern textile mills and that “the insertion of such a unionsecurity clause in these contracts is in recognition of the widespread use of the clause in the textile industry.” Refusal to_grant maintenance of membership.—In only three of the many cases in which union security was an issue did the Board refuse to grant mamtenance-of-membership clauses. In each of the three cases the union had violated its “no-strike” pledge by participating m a work stoppage. In the case of the Monsanto Chemical Co., where a 5-day strike had occurred, the Board said: Ija6 °r Board would not be justified in granting a maintenance-ofmembership protection to this or any other union which resorts to the use of e^ n o m ic force m an attem p t to obtain its demands. Such action is in direct violation of lab o rs pledge to the President and to the N ation th a t it will not stn ke for the duration of the war and th a t it will agree to abide by decisions reached through the use of the peaceful procedures of conciliation, mediation, arbitration, and if necessary, final determ ination by the W ar Labor Board. * * * f he. Paocl found th a t the evidence clearly shows th a t the decision to call a strike m this im portant war industry was specifically recommended by the union’s eaders and places the responsibility for calling the strike upon those leaders, and tffe action was endorsed overwhelmingly by the membership of the union. 8See Marshall Field & Co. case, Monthly Labor R eview , June 1942 (p. 1347). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations 67 / acations With P ay The War Labor Board during August and September granted vacations-with-pay clauses in several instances. In the General Motors case the previous 1-week vacation-pay allowance for all employees was increased to 2 weeks’ allowance for all employees with 5 or more years’ seniority. A union request for a 2-week vacation for employees with 1 or more years of service was denied by the Board in the Bethlehem Steel Co. (Shipbuilding Division) case. Instead, the Board decided that the same policy should be followed in the Shipbuilding Division which prevails in other divisions of the company. The geneial company policy on vacations is to grant a week’s vacation to employees with 3 or more years of service, and 2 weeks’ vacation for all employees with 15 or more years of service. The Board also granted 1 week’s vacation with pay to employees of 56 transportation companies of St. Louis, Mo. In this case the Boaid’s opinion discusses the effect of vacation pay on general wage policy: The Board approves the recommendation for a week’s vacation with pay at a flat rate of $38 per week. I t is made very clear, however, th a t this decision is based solely upon the facts of this case and does not establish a rule th a t vaca tion pay is never to be considered as a wage increase. On the one hand, vacation pay is clearly a p art of a com pany’s labor costs. If the vacation is not taken—as in wartime it frequently will not be—the vacation pay certainly constitutes an addition to the employees’ equal earnings. On the other hand, a universal rule th a t vacation pay is to be considered as equivalent to a wage increase would often work manifest injustice. I t would logically result in lesser rate increases being given where vacation pay is granted th an where it is denied; in fact, therefore, the employees would not be receiving vacations with pay. R ather than attem pt, therefore, to lay down a general rule, we think it fairer to decide the question in each instance upon the peculiar facts of the case then before us. Among the relevant facts to consider are the am ount of the vacation pay in relation to average weekly straight-tim e earnings, the length of the vaca tion, the percentage of employees eligible to receive it, the probability th a t it will or will not be actually taken, the circumstances of the negotiations over the vacation issue, its relation to and effect on wage negotiations, and the tradition and practice in the industry w ith regard to vacation pay. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Disputes STRIKES IN NOVEMBER 1942 PRELIMINARY estimates of the Bureau of Labor Statistics show a substantial decline in strike activity in November, continuing the downward trend of the preceding 3 months. The number of new strikes in November was 70 percent of the number in October, 61 percent as compared with November 1941, and about 90 percent of the average for November in the 5-year pre-defense period 1935-39. There were about 90 percent as many workers involved in November strikes as in October, one-fourth as many as in November 1941, and 4 percent more than the 1935-39 aver age for November. Idleness during strikes in November amounted to slightly more than half as much as in October, one-eighth as much as in November 1941, and about one-seventh as much as the Novem ber average during 1935-39. The largest strikes in November, in terms of workers involved, were (1) the 1-dav strike in Detroit affecting nearly 5,000 workers in 15 tool and die plants, called by the Mechanics Educational Society of America because of alleged interference with its organizing efforts by the United Automobile Workers (C. I. O.), and (2) the 3-day stoppage involving about 4,000 workers at two plants of the Nash-Kelvinator Corporation, Lansing, Mich., because of dissatisfaction with certain supervisory employees. Both stoppages were terminated pending further negotiations before the National War Labor Board. Idleness during strikes in November is estimated to be 0.03 percent of available working time. Trend of Strikes, January to November 1942 All strikes 1 Month Strikes affecting war work 2 Number of Number of Number of Number of Number of Number of strikes strikes workers man-days beginning workers man-days beginning involved idle involved idle in month in month 19Jp January______ February_____ M arch________ April_________ M ay_________ June_________ July_________ August_______ September____ October______ November____ 155 190 240 310 275 350 400 350 290 235 165 32,500 57,000 65,000 55,000 58,000 100,000 87,500 80,000 80,000 60,000 55,000 390,000 425,000 450,000 375,000 325,000 550,000 450,000 450,000 450,000 325,000 175,000 27 50 66 91 125 171 198 195 156 93 91 11,605 24,587 34,957 26,255 44,891 78, 627 74,812 70, 352 71,912 38,321 43, 422 46,197 118,700 166, 680 173, 513 . 137,330 254,653 233, 614 266, 353 318, 892 167,865 91,925 1Figures are not final but are subject to change as later information is received. 2As determined by a Joint Committee of representatives from the War, Navy, and Labor Departments, Maritime Commission, War Labor Board, and War Production Board. The Bureau of Labor Statistics does not participate in the selection of these strikes, but it does furnish the statistics after the Joint Com mittee determines which strikes affected war work. 68 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69 Industrial Disputes ACTIVITIES OF UNITED STATES CONCILIATION SERVICE, NOVEMBER 1942 1 THE United States Conciliation Service, during November, disposed of 1,442 situations involving 752,164 workers (table 1). The services of this agency were requested by the employers, employees, and other interested parties. Of these situations 91 were strikes and lock-outs involving 47,932 workers; 881 were threatened strikes and contro versies involving 418,737 workers. During the month 222 disputes were certified to the National War Labor Board, and in 50 cases other agencies assumed jurisdiction. The remaining 198 situations in cluded investigations, arbitrations, requests for information, consul tations, etc. T able 1.— Situations Disposed of by United States Conciliation Service, November 1942, by Type of Situation Type of situation W orkers in volved N u m b er All situations handled. 11,442 752,164 Disputes------- ---------Strikes_________ Threatened strikes Lock-outs_______ Controversies------ 972 90 155 466, 669 47,912 58,955 726 359, 782 Other situations-------------------------------------------Investigations___________________________ Technical services............................................... Arbitrations---- ----------- ------ ----------------- - - Requests for verification of union membership. Requests for information-------- ------------------Consultations.-........................ ............. ............. Special services of Commissioners......... ........... Complaints---------- ------ ---------------------------- 198 48 18 52 18, 737 3,348 5,608 7,990 49 241 328 1,168 5 Disputes referred to other agencies during negotiations. To National War Labor Board------------------------To National Labor Relations Board.-..................... To other Federal agencies.. --------------------- ------To nongovernmental agencies-------- -----------------To State agencies------------- ----------------------------- 1 2 17 49 7 5 272 222 36 8 4 2 20 266, 758 230,147 11, 510 24,922 137 42 i 355 of these cases involving 1 i 1,371 vorkers were adjusted, subject to arbitration or approval of the wage provisions by the National War Laoor Board. The facilities of the Service were used in 28 major industrial fields, such as building trades, and the manufacture of foods, iron and steel, textiles, etc. (table 2), and were utilized by employees and employers in 47 States, the District of Columbia, Puerto Rico, and Alaska • (table 3). i Report prepared by United States Conciliation Service. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 70 1 able Monthly Labor Review—January 1943 2. Situations Disposed of by United States Conciliation Service, November 1942, by Industries Disputes Other situations Total IndustryNumber A ll industries............................ . 1,244 2 A griculture________ ____ _____ B u ild ing trades_______________ C hem icals____________________ C om m uni cations_____ ____ _ D om estic and personal____ Electrical eq u ip m en t_________ F o o d _______ i ________________ 48 46 7 31 46 125 Furniture and finished lum ber Iron and steel____________ ____ L eather_____ _________________ L u m ber______________________ M a c h in e ry ..____ _____________ M aritim e_____________________ M in in g _____ ____ ____________ 199 24 29 57 4 19 Workers involved 733,427 214 47, 793 11, 346 19,323 5,829 42,154 32,592 68 13,840 105,414 14, 795 9,478 24,109 568 17,131 M otion pictu res_________ ____ N onferrous___________________ Paper________________________ P etroleu m _____ _____ ________ P rin tin g______ ______ ________ Professional___________________ R u b b e r ..______ _____ ________ 3 45 17 16 15 16 428 22,389 2,185 5,568 1,272 89 29,828 Stone, clay, and glass_________ T ex tile_______________________ T ob acco__________ ____ ______ T rad e________________________ T ransportation. . . . ___________ Transportation eq u ip m en t____ U tilitie s________ ____ ________ U nclassified________________ _ 62 57 3 99 59 71 14 60 19, 741 45,394 3,383 12,208 18, 730 204, 387 7,883 15,356 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Number 198 12 4 1 2 7 19 6 27 13 7 7 Workers involved 18, 737 2 752,164 214 48,019 11,419 20,423 5,982 43,912 33, 548 60 50 153 1,758 956 33 53 144 1,272 1,996 635 350 400 74 226 37 36 64 4 3 21 15,112 107, 410 15,430 9,828 24, 509 568 17,134 2 4 58 18 18 17 3 18 430 24,463 2,215 5,575 1, 290 108 32,332 67 75 4 113 20,944 47,679 3,385 12,489 18,956 204,603 1,100 2,074 30 7 18 19 2,504 5 18 1, 203 2,285 14 9 5 5 281 226 216 227 721 12 1,442 Workers involved 226 73 2 1 13 1 2 2 1 2 1 Number 2 8 68 76 19 72 8,110 16,077 71 Industrial Disputes T able 3.—Situations Disposed of by United States Conciliation Service, November 1942, by States Disputes State All States----- ----------------------------------Alabama __ _ _ ___ ___________ Arizona__________________- ........- .......... Arkansas----------------- --------------- ------- California---------------------------- -........... . Connecticut------- ------------------------------- Num ber 733,427 16 5,574 2,918 3 903 70,071 550 12,641 21, 212 3; 821 2,842 2 1 6 118 5 11 2 9 15 Illinois________ ____ ____ ____-........... Indiana----------------------------------- --------Iowa. ------------ ---------- -------------------Kansas--------------------------------- ------ ----Kentucky----------------------------------------Louisiana----------------------------------------M aine....... .................. ....................-..........M aryland......... -......................... ................ 118 53 14 Nebraska___________________________ New Hampshire _ _______ __________ New Jersey.-------------- ----------------------New Y o rk ... -------------- . ---------------Nortb Carolina. _ _ _ _ _ _ ________ O h io _____ . ----------------Oklahoma--------- -----------------------------Oregon ________ ______ - ------------Pennsylvania------------------- ------ ---------Puerto Rico-------------------------------------South Carolina---------------------------------Tennessee----------------------------------------Texas------ ------- ------------------------------TTtfth _ _ _______________ Virginia_____________________ ______ Washington---- --------------------------------West Virginia---------- ------------------------Wisconsin---------- ----------------------------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Workers involved 1,244 District of Columbia--------------------------Florida...................................----............--- Massachusetts-------------- ----------- --------M ichigan.---------- ---------------- -----------M innesota------------------------- ----------Mississippi------------ --------------------- ---Missouri-------------- ----------- ------ ---------- Other situations 1 22 12 16 9 3 13 28 87 26 8 36 7 6 2 2 64 2 120 6 1 100 10 2,138 25 40, 450 37,895 15,082 679 5,135 18,667 12, 560 1,189 6,828 64,568 20,262 23,925 10,115 893 1,471 28 600 19,489 Num ber 198 1 1 10 Total Workers involved 18,737 13 33 3,002 577 420 73 18 10 6 2 1 4 6 128 59 24 13 3 5 134 851 117 30 269 119 657 213 19 17 1,719 1,358 3 13 260 1,539 47 104 27 2 1 20 15 6 18 11 1 264 49 7 7 7 678 71 17 2,316 23 10 4 11 2 2,105 1,009 126 345 17 1,802 13,564 2,507 342 3 10 100 1 2,796 11, 320 2,852 9,627 2 1 1 32 666 2 12 14 5 18 17 3 200 5, 574 2,918 16 936 73,073 550 13,218 21, 212 4, 241 2,915 2 2 3 3 27 103 4 5 1 21 752,164 16 3 1 1 1 3 2 87 259 Workers involved 1,442 7 128 5 14 3,225 129; 066 9,153 38 64, 212 2,277 14,154 59,042 1,080 2,970 36 14 35 4 Num ber 2 2 2 6 1 123 20 137 31 114 6 5 8 2,138 25 40, 584 38, 746 15,199 709 5,404 18,786 13, 217 1,402 8, 547 65,926 20,264 24,185 11,654 893 1,735 28 600 20,167 3,225 131, 382 9,153 38 66, 317 3,286 14, 280 59,387 1,097 2,970 19 18 3 1,812 13,664 2,508 342 23 37 15 38, 4 2,828 11,322 2,939 9,886 1 200 666 Education and Training POLICIES ON WAR-TRAINING PRODUCTION WORK IN VOCATIONAL SCHOOLS SINCE July 1, 1940, when the defense training program was started, many public vocational schools, especially those giving machine-shop courses, have engaged to some extent in production work. Most of the articles produced have been for the use of the schools, but recently certain types of production have been undertaken for Government establishments, such as navy yards and arsenals, and in some locali ties even production for private contractors on war work. The United States Office of Education has now established policies to govern such war-training production work in the public vocational schools. The types of production work which may be carried on are classified, and conditions under which production may be engaged in are stated, proper safeguards are specified, and compensation for trainees is provided for. Such production is to be conducted as a cooperative enterprise between management and labor, and provi sion is made for the conservation of critical materials. The policies are stated to be for “the duration of the emergency only.” Types of Production W ork The Office of Education classifies production work that may be included in training programs for war production in vocational schools as: 1. Production for school use, in connection with training for war production, of hand tools, shop equipment and accessories, and machine tools, as well as maintenance and repairs. 2. Production for Government establishments, including the proc essing of material for military establishments such as navy yards, arsenals, and ordnance depots, with the Government establishments providing the component parts and material. 3. Production work for private contractors, including the process ing of materials into component parts of war products, and various machine operations in connection with that part of the war-production program engaged in by the contractor. Such materials and component parts are to be provided by the private contractor. Conditions Under W hich Schools M ay Engage in Production W ork Selection of work- Production work must be selected primarily be cause of its instructional value, and training therein is to be based on comparable standards of practice and production methods of the industry in which the trainees will be employed. Only those articles 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Education and Training 73 . are to be produced which are useful in connection with the war effort. When work for processing on a mass-production basis is chosen, the training must be of a kind to meet specific needs for unit-skilled oper ators in a given industry. The time element in training for the opera tion in a production line shall not be longer than is necessary for proficiency at the minimum level acceptable to industry for the grade of work for which training is given. Objective of training.—The main objective of the training program shall be the training of the students for war production in the shortest possible time. Production must be a byproduct of training and must contribute directly to the war effort. The training program shall provide for each trainee minimum in struction on each type of operation required in the work on which he is to be employed. In case of production work for a Government establishment or a private contractor, the training plan shall be for mulated and approved by a committee from the industrial establish ment concerned, composed of craft and management representatives, and its final approval shall be recommended by the local advisory committee.. Records.—The schools must keep adequate records of the amount and types of production work, of the value and distribution of the work done and of the articles produced. Legal requirements.—All requirements of applicable Federal and State laws must be met. Production time schedules.—The schools are forbidden to enter into contractual agreements for a period too short for proper training. Supervision.—Adequate technical counsel and advice shall be given by the State to schools engaged in production work. Specific conditions.—Articles produced for school use shall be re stricted to those which cannot be purchased and which are actually needed in connection with the State program of vocational training for war production workers. Such articles shall be so designed and processed as to require a minimum of critical materials, and shall not enter into the channels of trade in competition with articles pro duced by business and industrial establishments. In order to insure proper inspection and coordination of the train ing with the requirements of the jobs only schools in the areas near military establishments shall do production work for such establish ments. The establishment requesting the training shall select and compensate the trainees in accordance with civil service regulations, unless the school seeks the work for training purposes solely. Trainees on production for private contractors shall be employed by the contractors on the same basis and in the same way as other employees, and then referred to the schools for training. During the time they are actually engaged in production work they shall be paid the beginning wage for learners in the occupation for which they are being trained. The rate of pay shall be the prevailing wage as established by any effective collective-bargaining agreement in the plant for which they are being trained. School authorities shall make sure that any lowered production cost resulting from work performed by the schools has received proper consideration. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 74 Monthly Labor Review—January 1943 WAR ORGANIZATION OF HIGH-SCHOOL STUDENTS THE imminent inclusion of young men of 18 and 19 years of age in the Selective Service and the realization that the war may be of long duration have focused attention on the education and training of boys and girls of 15 and 16 years of age for war service—the boys probably in the armed forces and the girls in war production and other war services. For this reason, the National Policy Committee (repre senting the War Department, the Navy Department, the Civil Aero nautics Administration of the Department of Commerce, the United States Office of Education Wartime Commission, and civilian aviation interests), which was formed for the purpose of developing a plan, has sponsored the voluntary organization of the 6,500,000 students in the 28,000 high schools of the Nation for war preparation and service. The plan for organization of a High School Victory Corps in every high school, large or small, was launched in September 1942, and enrollment therein is progressing in every part of the country. The organization is voluntary. It is democratic in initiation and manage ment through school officials and advisory councils of students, teachers, parents, and citizens of local communities. Its membership is open to students of all races, colors, and creeds. Although Nation wide in scope, it does not establish a national organization as such. The fundamental purpose of the High School Victory Corps is to promote instruction and training for useful pursuits and critical war services. The specified objectives of the Corps are as follows: Guid ance into critical services and occupations; wartime citizenship; physical fitness; military drill; competence in science and mathematics; preflight training in aeronautics; preinduction training for critical occupations; and community services. I t is recognized that much has been done in thousands of high schools along this line, but the plan is to provide a Nation-wide framework into which all high-schoolstudent war organizations can be fitted, if desired, and which will include all student bodies. State and local leadership is invited. A general membership is provided in which all students can partici pate, and in addition there are five divisions designed for students in their last year or two of high school. The requirements for enrollment as general members of the High School Victory Corps include partici pation in a school physical-fitness program; studying courses not only suitable to the age, grade, and ability of the student but also of immediate and future usefulness to the Nation’s war effort; and participation in at least one important wartime activity or service of specified type. Membership in each of the five divisions of the Victory Corps is directly related to preparation for the special war service in which it is believed the student may make the most effective contribution. These divisions and the war service for which preparation is given are as follows: Air Service Division, for service in the armed forces as aviation cadets or as aircraft repair and maintenance workers; Land Service Division, for some branch of the ground forces of the Army; Sea Service Division, for some branch of the Navy or Merchant Marine (other than naval aviation) ; Production Service Division, for service in war industry, agriculture, or other essential civilian productive occupations; and Community Service Division, for community or other service occupation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Education and Training 75 Participation in programs of physical fitness and of military drill is a requirement for all the divisions. High-school mathematics is required in the Air Service Division, Land Service Division, and Sea Service Division, the required time for the subject being, respectively, 3 years, at least 1 year, and preferably through plane trigonometry. Shop mathematics is an alternative in the Land Service Division. The Land Service Division and the Sea Service Division each require at least 1 year of laboratory science—preferably elementary physics in the Sea Service Division, and with the alternative of 1 year of shop science in the Land Service Division. In addition, the Air Service Division requires 1 year of high-scliool physics; the Sea Service Division, one or more shop courses and a course in the elements of navigation; the Land Service Division, one or more special preinduction courses; the Production Service Division, preparatory courses for agricultural work or trades or industry, and part-time work, either paid or voluntary, in some form of production; the Community Service Division, preparation for community service at the professional level or commercial, distributive, homemaking, or similar community-service occupations, and part-time work, either paid or voluntary, in some form of community service. It is the duty of the High School Victory Corps to make every member realize the relation between his courses in high school and the victory which means survival of all which we in our country hold dear. Both curricular and extracurricular activities of the Corps are designed to promote the training of the students for that war service which will come after they leave school and for active participation in the community’s war services while they are yet in school. The organization of the High School Victory Corps in all the secondary schools of the country is being promoted by the United States Office of Education. All three divisions of the Army—the Army Air Forces, the Ground Forces, and the Services of Supply— are developing preinduction training manuals for use in secondary schools. The manuals cover such subjects as the fundamentals of electricity, automotive mechanics, preflight aeronautics, shop work, machines, and others. The Navy, the Civil Aeronautics Administra tion, civilian defense councils, etc., have instituted programs to assist in the training of these young people for war service. Coordination of the Victory Corps program with other community war programs is advised. Insignia for the different branches of the Corps, including the special service divisions, have been adopted, and may be worn on a Victory Corps cap of uniform design or on arm bands or the front pocket or sleeves of shirts, blouses, or sweaters. Simple uniforms, or uniform dress, may be worn especially for public appearances, but are not considered necessary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Accidents and Health ACCIDENTS AND HEALTH IN BRITISH FACTORIES, 1941 BRITISH experience in this and the last war confirms the opinion that if maximum production is to be obtained, the general require ments of the Factories Act, such as the prevention of accidents, pro vision of proper ventilation, heating and other physical conditions, and reasonable hours of work, must be observed, according to a state ment by the Chief Inspector of Factories of Great Britain in his annual report for the year 19414 This has not been self-evident, it is said, even to some of the Government departments, as the extra out put obtained from long hours after the battle of Dunkirk is often cited. However, “reasonable hours of work produce the best steady output, and production is a matter of organization on these lines, lines that will not prevent workers from making an extraordinary effort for a short period to meet some exceptional emergency.” Industrial Accidents The increase in reportable accidents in 1941 was again very high, but is accounted for by the increased war effort with a consequent large increase in the number of factory employees, particularly in the number of women employed in relatively dangerous industries. There were 1,646 fatal and 269,652 nonfatal accidents in 1941— increases of 20 percent and 17 percent, respectively, over the figures for 1940. The principal increase was in accidents to adult women, indicating that women not only had taken a great share in the work of making munitions, but that they also had taken their share of the dangerous processes in these industries. Compared with the pre-war figures for 1938, the number of accidents to adult males had increased from 134,752 to 191,343, or 42 percent; to adult females from 14,626 to 42,857, or 192 percent; to male young persons from 22,922 to 27,757, or 21 percent; and to female young persons from 7,803 to 9,347, or 20 percent. The approximate accident rate per 1,000 em ployed for adult males was 40 in 1938 and 50 in 1941, or an increase of 25 percent; for adult females 9.5 in 1938 and 18 in 1941, or an in crease of 90 percent; for male young persons 43 in 1938 and 52 in 1941, or an increase of 21 percent; and for female young persons 14.5 in 1938 and 18 in 1941, or an increase of 24 percent. These figures do not show the actual frequency rate, as the hours worked by the injured persons in the 2 years are not known. It is probable that there was about a 15-percent increase in hours and therefore in the 1Great Britain. Ministry of Labor and National Service. Annual Report of the Chief Inspector of Factories for the Year 1941. London 1942. (Cmd. 6397.) 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Accidents and Health 11 period of exposure to risk in the main munition factories, and it can be assumed that approximately this percentage of the increase in acci dents was due to this extra time of exposure. The extent to which women are working in the dangerous processes in industry is shown by the increase in accidents to females in a few of the industries that are known as accident producers. In four branches of the metal and engineering industries and in the aircraft industry, the total number of accidents to women in 1938 was 3,491, as compared with 22,544 in 1941. Among girls the number of acci dents rose from 1,754 to 3,380 in the same period. There is no evi dence that women are more liable to accidents than men, the report states, with the exception of accidents caused by unconfined hair and loose clothing, and it is the general impression of factory inspectors that after the period of special liability to cuts and bruises in the breaking-in period, women, for work within their strength, are safer workers than most men. However, in spite of the large number of women in war industries, the really dangerous industries are still staffed largely by men. One generally accepted cause of the general increase in accidents is the increase in the pressure of war work and the fact that this work is so largely carried on by inexperienced workers. Physical Conditions in Factories Although there has been steady improvement in ventilation and other requirements of the Factories Act in all parts of the country, it is said there are still too many complaints of neglect of ventilation and of the lack of necessary sanitary and washing accommodations. These unsatisfactory conditions are found mainly in the new dispersal factories, many of which are in buildings which were not designed for the accommodation of large numbers of workers. In many of the new factories insufficient consideration has been given to the problem of ventilation under blackout conditions. In the larger factories and, in particular, those where regular night shifts are worked, the neces sity for the installation of a ventilation system has been recognized, and in many plants such a system was installed during the year (1941). Under present conditions, however, the problem is becoming one of the supply of ventilation equipment rather than of convincing the management of the necessity for a ventilation system. The report also emphasizes the importance of the thorough removal of harmful dust and fumes by localized exhaust draft at the point of origin. The Factories (Standards of Lighting) Regulations became effective February 1, 1941, and have had satisfactory results, particularly in the larger factories and the new wartime factories. The importance of good lighting from the standpoint both of the comfort and efficiency of the workers and of its effect on production has been more generally realized than ever before, but the need for economy in the use of labor, materials, and fuel is becoming increasingly felt and has to be kept in mind in putting the regulations into effect. Hours of Work The control'of hours of employment of women and young persons, which had been relaxed for a brief period in 1940 after the withdrawal 5 0 1 1 5 2 — 4 3 -------6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 78 Monthly Labor Review—January 1943 from France, was again well established by the beginning of 1941. The terms of the General Emergency Order for Engineering and cer tain other classes of work, issued in the latter part of June 1940, covered the requirements of the majority of factories in which emerg ency modifications of the hours provisions of the Factories Act were needed. Early in 1942 less than half of about 10,000 factories which had emergency permissions to employ women and young persons over 16 either on a system of day and night shifts or for more than 48 hours a week on a day shift, were permitted hours between 55 and 60 per week, and this proportion has since tended to decrease. It is pointed out in the report that the fact that permission has been obtained for certain hours does not necessarily mean that these hours will always be worked by the entire factory force. The effects of changes in hours of work on production and absentee ism are shown by the records of different factories. In one case a firm employing women in the making of hand grenades found that production was higher in a 50-hour week than in a 56-hour week. Records of daily and weekly output in a factory manufacturing scientific glass, in which most of the employees were women, showed that output was regained within a short time after an 8K-hour day was substituted for one of 9 hours and 50 minutes. The value of rest periods was shown in a factory maintaining a 12-hour night shift for adult men, which had had only a half-hour break in the shift. The granting of another half hour later in the shift showed, after a short interval, that there was no loss in production. Various systems of rotation of shifts by which the individual works only 6 days or less out of 7 have been put into effect, and during the year there was a more extensive introduction of the part-time system of employment of women with domestic or other responsibilities, in order to meet the difficulties in connection with manpower. Health in Factories In the section dealing with health the Senior Medical Inspector reports that there does not appear to be any reason to believe that a general adverse effect on the health of workers has resulted from wartime influences. If industrial employment had produced deteri oration in health, it would have been evidenced by an increase in the notifiable infectious diseases, since a lowered vitality renders the indi vidual more liable to be affected by a poisonous substance. That there has been no such rise in the number of cases of poisoning in industry indicates that there has been no general lowering of vitality; it cannot be stated, however, that all workers maintain their full vitality, since workers in the heavy industries, for example, would be unlikely to retain their normal health if long hours were worked continuously. The most important factor in the maintenance of health among the British workers is believed to be the provision of canteen meals for workers, at reasonable rates. There is said to be no indication that the work which women have taken up in industry has, in-general, adversely affected them, although the employment, on certain types of work, of women who have had children is con sidered unwise. Also, there is no direct evidence of physical injury to young persons whose hours of work had to be increased temporarily. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Accidents and Health 79 As regards specific diseases attributable to the materials handled in different processes, it is pointed out that the number of cases of lead poisoning—59—is the lowest since notification became a statutory obligation. Cases of cyanosis developing from the handling of TNT account for the greatly increased number of cases of “anilism” re ported, but these cases usually recover with removal from contact. Cases of jaundice, however, occurring after the cyanosis or inde pendently, accounted for 41 cases, of which 12 terminated fatally. There was a reduction in the number of cases of anthrax—22 with 3 fatalities, as compared with 37 with 5 fatalities in 1940. There were nearly 200 more cases and 10 more deaths from gassing accidents. Carbon monoxide caused the greatest number of cases—258 with 24 deaths in 1941, as compared with 162 with 20 deaths in 1940—while there was a reduction in the number of cases of gassing from nitrous fumes—217 as compared with 236 in 1940. Cases of gassing from all causes numbered 782, with 41 fatalities, as compared with the 1940 totals of 585 cases and 31 deaths. There was an increase in the number of cases of dermatitis, but this was not considered surprising in view of the increasing numbers entering into employ ment and the increased use of materials causing dermatitis. An encouraging feature of the health situation in factories was the fact that, in spite of the difficulties occasioned by requirements of the various branches of the service and in spite of other claims on the medical profession, there had been progress in the provision of medical supervision, particularly in the appointment of works medical officers for part time. Factory Canteens Perhaps the most outstanding achievement of the year in the maintenance of the health of industrial workers was the progress made in the provision of factory canteens. Prior to the end of 1940, canteens providing hot meals were relatively uncommon except in the largest factories, but by the end of 1941, 6,592 places subject to inspection by the Factory Department had canteens, while an addi tional 857 places were known to have canteens in preparation. There are no statistics available as to the total number using the canteens, but it is stated that it is safe to say that some millions of workers through out the country now habitually get a full cooked meal daily at their works canteen. The feeding of workers in small places still presents many problems, but much has been done for such workers through the provision of British Restaurants. ######< PUBLIC HEALTH IN GREAT BRITAIN IN 1941-42 Health Situation in Country as a Whole THE health of the British nation remained good during the year ended March 31, 1942, according to the annual report 1of the Ministry of Health, although the period under review extended well into the third year of the war. The sustained good health of the people, which is said to be largely due to the improvements in housing, health, 1Great Britain. Ministry of Health. Summary report, for the period from April 1, 1941, to M arch31, 1942. London, 1942. (Cmd. 6394.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 Monthly Labor Review—January 1943 and other social services that were made between 1919 and 1939, has contributed substantially to the war effort. The changing attitude of the public toward health problems has been promoted by news paper and magazine articles and the radio, which have stressed the value of keeping fit and of the use of the preventive services. Ration ing and the educational publicity of the Ministry of Food have created a new and practical interest in a balanced diet and in methods of preparing and cooking food so that the valuable constituents are retained. Incidence of Disease and Maintenance of Health There was no great change in either the incidence or the death rates of the principal communicable diseases during the year. The number of cases of cerebro-spinal fever was still abnormally high, but notifi cations as well as the death rate per 1,000 of the population fell some what. There was a considerable increase in the number of cases of diphtheria and an increase in the number of deaths over the precedingyear. Progress has been made in immunization of children against this disease since the beginning of the campaign at the end of 1940, when the necessary toxoid was made available to local authorities free of charge. However, it is recognized that no substantial im provement in incidence or death rate can be expected until at least three-fourths of the child population of the country has been im munized. Parasitic diseases, such as scabies and typhus, were dealt with under special regulations. The former disease has become widely prevalent, partly because large numbers of the population have been living under more crowded conditions; and, as a result, local authori ties have been given wider powers to deal with the disease. In view of the prevalence of typhus fever in continental Europe, special pre cautions were taken to guard against its introduction into Great Britain. Strict medical check is exercised at seaports and airports; local authorities have been given full information about the disease and how to deal with it; special medical and sanitary teams have been organized and trained to deal with it in any area in which it may arise, and arrangements made for expert diagnosis. Exceptional precautions have also been taken against an outbreak of malaria be cause of the return to the country of abnormal numbers of persons from malarial regions abroad, who are potential carriers of the disease. An increase in tuberculosis is usual in time of war. The disease had increased since 1939, but deaths from respiratory tuberculosis which numbered 23,633 in 1941 were fewer by 27 than in 1940. Deaths from nonrespiratory tuberculosis numbered 5,037, an increase of 553 over the 1940 figure. Before the war, more and better houses, slum clearance, and generally better living conditions had supple mented modern methods of treatment and care of tuberculosis. Although these allies have largely been put out of action, in one way the war has perhaps quickened progress by showing the value of minia ture radiography in early cases which other methods of diagnosis fail to reveal. A committee of the Medical Research Council has in vestigated the general trends of tuberculosis from 1939 to 1941 and, although its report had not been presented by the end of the period under review, it was clear that one of its recommendations would be the general use of miniature radiography as an aid in the early detec https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Accidents and Health 81 tion of tuberculosis as soon as the necessary apparatus becomes available. A campaign was carried out in the autumn and winter of 194142 by the Central Council for Health Education and the Ministry of Information to impress upon the public the necessity for the control of droplet infection spread by spitting, coughing, and sneezing. The infections spread by this means range from the common cold and in fluenza to tuberculosis and other fatal forms of respiratory disease. The fact that at least 2 days’ work are, on the average, lost by every worker every year through colds and influenza makes it important in the interest of war production to control the spread of these diseases. The efficiency of the ordinary handkerchief as a trap for the droplets has been publicized, but unfortunately the supply situation did not allow the sale of handkerchiefs coupon-free, although this might have been a great help to the campaign. A shortage of nursing and domestic staff in hospitals was reported in 1941 and there was also an acute shortage of these workers in sanatoriums. The need for such staff in infectious-disease hospitals is one which may become urgent at any time. Recruitment for nursing has been assisted by the Ministry of Labor and National Service and by central and local publicity measures, with the result that the flow of recruits to the civil nursing reserve has been maintained. A special committee is concerned with establishing salary scales for nurses, as well as working hours, length of holidays, and interchangeability of pensions. Many drugs have become scarce or unobtainable owing to enemy occupation of the sources of essential raw materials, to the need to use these materials for nonmedicinal war purposes, and to the difficulties of transport and exchange. Measures taken to meet the shortage of drugs have been (1) the authorization of the use of substitute alter natives for certain scarce drugs, and (2) the issuance of a national war formulary, providing for the economical use of essential drugs of which there is a limited supply, and giving a comprehensive range of formulas in which drugs which are scarce have been replaced by those of equivalent value which are readily obtainable. Summing up the experience for the year, the report shows that there was no major epidemic, no falling away from nutritional stand ards, and no increase in mental disease. The estimated population oi England and Wales, based on the mid-1939 population figures, was 41,460,000. The number of deaths from all causes in 1941, including violence directly attributable to the war, was 535,180. The crude death rate was, therefore, 12.9 per 1,000 population but, if deaths from violence resulting from the war are excluded, the rate was only 11.7 per 1,000, a whole point below that of 1940 and only 0.2 above the 1939 rate. CARE OF MOTHERS AND CH ILD REN Maternal mortality which reached a record low figure of 2.60 per 1,000 in 1940 rose slightly in 1941 to 2.76, but the lowest rate for infection incidental to childbirth—0.47 per 1,000 births— was recorded in 1941. Infant mortality rose to 59 per 1,000 live births, 3 points above the 1940 figure and 0 points above the record low of 1939. However, the rate for the fir§t quarter of 1942 was the lowest yet recorded for piy first quarter, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 Monthly Labor Review—January 1943 Expectant or nursing mothers and children under 5 years of age have been furnished either free or cheap milk, and eggs in the ratio of four to one available to the ordinary consumer. In addition, meals for needy expectant mothers wore provided by many welfare authorities at recognized communal centers. Children under six also had first call on the limited supply of oranges and children under two could get free or very cheap orange juice or black currant juice, while other sources of essential vitamins were made available for children under five. Provision was also made for clothing for infants when the clothes ration scheme was introduced. The need for wartime nurseries for the care of the children of work ing mothers developed rapidly during 1941. By August 1942, 675 whole-time and 151 part-time nurseries were open; 442 whole-time and 26 part-time nurseries were under contract; and 176 and 3, respectively, were awaiting authorization. The nurseries are usually open from 12 to 15 hours a day, but some remain open the entire 24 hours. There were 360 residential nurseries in operation by the end of March 1942, with places for 11,400 children. Other facilities for the care of children include 595 hostels established by local authorities for evacu ated children. H O SPITA L D E V EL O PM E N TS Prior to the war, although there were considerable and varied hospital resources and well-developed hospital technique, there was haphazard hospital distribution and uneconomical competing services. After the outbreak of war, an emergency hospital scheme was created to adapt and supplement existing hospital resources so that the needs of civilian war casualties and of the services could be met. This scheme, which was developed to meet the emergency, with the contin uation of the war became the center of the wartime treatment of the whole hospital problem. The scheme could not in itself provide a permanent solution of the hospital problem, but it has formed the basis for a long-term hospital policy for post-war reconstruction which is being developed. Other developments under the emergency scheme include the pro vision of rehabilitation services for persons injured in war industry, and vocational training for persons who have been disabled for their ordinary occupation but are still capable of undertaking employment under ordinary working conditions in wartime industry. Health In London An interim report2 for the year 1941 of the medical health and school medical officer of the County of London, covering the second whole year of war, shows that, in spite of the loss of life and destruction of property from the continued heavy bombing during the first 4 or 5 months of 1941, the work of the health services was never disorganized. No matter where the blow fell, new arrangements were speedily made and the work went on. The patients and staff of hospitals which were wholly or partly put out of action were promptly transferred else where and new patients were admitted to appropriate hospitals with out delay. Temporary ambulance stations and school clinics were set up within a few days or even hours of the loss of a building. Under 1 T h e Local G overnm ent Chronicle, London, October 31,1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Accidents and Health 83 the heavy air attacks the population of London fell considerably by evacuation and this, combined with the absence of any serious epidemic, made it possible to provide the necessary hospital treatment in spite of the reduced accommodation. The rapid evacuation of air raid casualties and other acutely ill patients from the London hospitals to hospitals outside the city (through the Ministry of Health’s emergency hospital scheme) was of great assistance in keeping beds available for casualties and for civilian patients. The gathering together of large numbers of people in air-raid shelters did not result in serious epidemics as might have been expected; and diseases caused by droplet infection, such as influenza, pneumonia, and bronchitis, were fewer in 1941 than in 1940. There were no cases of smallpox or typhus fever reported during the year, and cases of cerebro spinal (or spotted) fever were fewer in 1941 than in 1940. Only two deaths from scarlet fever occurred. The rate of maternal mortality increased from 1.98 per 1,000 live births in 1940 to 3.05 per 1,000 in 1941. The rate for 1940 was un usually low and the 1941 rate was about the same as the rates of 8 or 9 years ago. The number of notifications of dysentery increased during 1941; but enteric fever caused only 17 deaths, none of which was attributable to infection by water, in spite of frequent disturbances of the sewerage and drainage systems. Deaths from street accidents in London fell from 543 in 1940 to 373 in 1941. The number of notifications of tuberculosis increased—5,252 in 1941 compared with 4,979 in 1940—but there was some reduction in the number of deaths. The population at risk in London is smaller and, it is said, there is little doubt that death rates from this disease are increasing. In January 1941 the estimated number of elementary school children in London was 85,000, but by the end of the year the number had in creased to 150,000. Routine and special examinations carried out under the authority of the London County Council, when compared with results of examinations of children of the same age groups in 1938, indicate that the nutritional condition of the children has re mained satisfactory and that the children as a whole were showing no evidence of physical or mental deterioration. There was an increase of scabies, however, among school children and in many cases the condition of the children’s teeth was unsatisfactory. About 80 percent of the elementary school children received milk in the schools. By the end of 1941 a total of 53,894 children either had received inoculations against diphtheria or were in the process of being im munized. This represented about 30 percent of the London child population between the ages of 1 and 14. There is no evidence to show that war conditions and the stress of air raids have resulted in an increase in the number of mental break downs, as during the year there was a marked decrease in the number admitted to mental hospitals. The work of the staff of the public health and mental health services, particularly during the first part of the year, was often carried out in the face of great danger. A total of 57 of the staff lost their lives on duty during 1941 and 95 were injured by enemy action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Court Decisions COURT DECISIONS OF INTEREST TO LABOR1 Supreme Court Decisions AN extension of the decision reached in the Kirschbaum and Arsenal cases is embodied in a later decision of the United States Supreme Court in the case of the Warren-Bradshaw Drilling Co.2 In the Kirschbaum and Arsenal cases the Supreme Court held that the Federal Fair Labor Standards Act applied to maintenance and service workers employed by the owner of a loft building whose tenants were principally engaged in the production of goods for interstate com merce.3 In the Warren-Bradshaw Drilling Co. case, it was held that em ployees of a well-drilling company operating a rotary drilling rig were engaged in an occupation necessary to the production of goods entering interstate commerce, and thereby entitled to receive payment for overtime hours in accordance with the Fair Labor Standards Act. The rotary drilling process is a preliminary process in oil-well drilling; it was left to other drilling companies with other employees actually to “bring in the oil with cable tools.” Some of the oil produced found its way into interstate commerce and the court ruled that, the em ployer, being “closely identified with the business of oil production, cannot escape the impact of the act by a transparent claim of igno rance of the interstate character of the Texas oil industry.” A second contention that no overtime pay was due because the employees received wages in excess of the statutory minimum, including one and one-half times that minimum for all overtime, was set aside as being squarely in conflict with the decision in the Missel3 case. One justice dissented from the interpretation of the court as to the coverage of the act, holding that its effect “is to ignore all practical distinction be tween what is parochial and what is national.” The petition of the Administrator of the Wage and Hour Division for a rehearing of the Belo 3 case was denied by the Supreme Court on October 26, 1942. The Court also refused to review a number of cases involving the National Labor Relations Act, the Railway Labor Act, and the Federal Anti-injunction Act. State Court Decisions Recent decisions of interest in the higher State courts include a case involving conflict between the Wisconsin Employment Peace Act * Prepared by Division of Labor Standards in cooperation with the Solicitor’s Office, Department of Labor. 2 Warren-Bradshaw Drilling Co. v. Hale (63 Sup. Ct. 125). 3 See.Monthly Labor Review, September 1942 (p. 531). 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Courl Decisions 85 of 1939 and the National Labor Relations Act. A local union of structural-iron workers had been certified as the exclusive collective bargaining agent of the employees of the Lakeside Bridge & Steel Co. by the National Labor Relations Board. The State board, however, ordered the union to cease picketing the company’s premises and jobs, on the ground that no labor dispute existed within the meaning of the Wisconsin act. The union, the State board held, had not been au thorized by a three-fourths vote of the employees to call a strike; in fact, the board maintained, it had lost its majority among Lakeside Co.’s employees since its certification 4 years earlier. The Wisconsin Supreme Court refused to sustain these determinations by the State board. The court thought that any decline in membership might be ascribed in large measure to the company’s refusal to bargain; in any event only the National Board and not the court had power to order a new election.4 Two recent minimum-wage cases ended unfavorably, owing in both cases to d eficien cies in administration procedure. In Maine the Supreme Judicial Court denied the jurisdiction of a lower court to enforce a minimum-wage order, on the ground that the Labor Commissioner had failed to file the required documents with the court.5 In California the Appellate Court denied the appeal of the State Division of Industrial Welfare against the judgment of a lower court invalidating that part of the Division’s minimum-wage order for the restaurant industry which forbade counting tips as part of the minimum wage.6 The question presented was: Is this section of the order inconsistent with an act of the legislature, passed after the order was issued, to regulate the practice of tipping? The law required employers to post a notice indicating what proportion of the tips, if any, must be turned in by the employees. The majority decision invalidating the anti-tipping provision of the order rested, at least in part, upon the fact that the Industrial Welfare Division had permitted the practice of counting tips as part of wages to continue for some years immediately following the enactment of the tipping law and, instead of challenging its legality, had acquiesced in the practice. Only after a change of State administration and the passage of some 10 years did the Division endeavor to enforce that section of the order. Consider able weight was given by the court to this “contemporaneous con struction” of the conflict between the order and the statute. A long and detailed dissenting opinion was filed, which is of interest in view of the bill now pending in Congress to amend the Fair Labor Standards Act, so as to exclude tips from the statutory minimum wage. 4Wisconsin Employment Relations Board v. International'Association of Bridge, Structurafand Ornamental Iron Workers’ and Shopmen’s Local 471 (6 N. W. (2d) 339, 1942). 5Calvin L. Stinson v. Taylor (27 Atl. (2d) 400). 6California Drive-In Restaurant Association v. Clark (129 Pac. (2d) 109). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation ********************************************+*******4**+**+*****+++**+* COOPERATIVES AND POST-WAR PROBLEMS COOPERATIVE associations in the United States, while coping with wartime conditions, have become increasingly concerned with the situation that will follow the peace, and have been directing their thought toward insuring not only the continuance but the broadening of democracy and the attainment of an economy of abundance. Naturally, the part that cooperatives can and should play in such an economy lias been one of their chief concerns. Shortly after the attack on Pearl Harbor the cooperative movement, acting through the Cooperative League of the U. S. A., offered the Government its services in any measures that would assist in protect ing the interests of consumers. At the request of the League a bill (Voorhis-Wagner resolution) was introduced in the 77th Congress of the United States, calling for the establishment of a Federal agency for post-war planning. It was reported favorably by the House Committee on Labor in April 1942, but no action was taken by either House prior to adjournment in December, so that the bill automatically died. When the cooperative section of the International Labor Office in the summer of 1942 inaugurated its current inquiry on the coopera tives’ part in the post-war world and called upon cooperatives for their views, a detailed plan was drawn up by the board of directors of the League. Planning for the post-war period was also the theme of the thirteenth biennial congress of the Cooperative League, held at Minneapolis, September 28-30. Even before the United States entered the war Midland Cooperative Wholesale in March 1941 called a conference of committees from each of its 10 districts to formulate a program for cooperatives that would strengthen them during the war and protect against a post-war col lapse. This conference recommended for the local cooperatives (1) three measures to increase efficiency, namely, the setting of commodity quotas, stricter control of credit with the purpose of attaining an entirely cash basis of operation and measures to decrease loss through shrinkage; (2) building of reserves rather than using surpluses for expansion into new lines of business; and (3) the setting aside by local cooperatives of sums equal to a tenth of 1 percent of annual sales, to pay for employee improvement (such as attendance at training courses, institutes, etc.). These recommendations were presented to member cooperatives in a series of local meetings.1 The annual meet ing of the wholesale, held in June 1942, passed a resolution directing that a post-war economic planning committee be appointed by the Midland board of directors. The duty of the committee would be to “receive, study, publish and transmit to the proper national authori1 Midland Cooperator (Minneapolis, Minn.), issues of March 12 and April 9,1942. 86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 87 ties any ideas or plans which appear to have merit in formulating our post-war economic welfare.” 2 Program of Cooperative League ^ In a series of meetings during 1942, the board of directors of the Cooperative League of the U. S. A. drew up a program for coopera tives that, in the opinion of the board, would assist in insuring perma nent peace after the present ward This program included four steps: L Cooperatives should appoint committees on public affairs, which should organize conservation programs among the cooperative mem bers and support legislation in the interest of consumers. 2. Cooperatives should support every sound effort on the part of the Government to prevent the dangers of inflation and deflation. The board pointed out that the simple way of prevention of these dangers is to “pay as we go” and to take out of the people’s income taxes, equitably prorated, sufficient to pay the Government expenses. This would “leave in the pockets of the people only an amount equal to the normal cost of the civilian goods which are available for consumption.” W hatever is borrowed now is only a deferment of the decision of who will pay the taxes, since as a whole the am ount borrowed m ust be paid for in taxes in time. We m ust learn to think in term s of goods—wars can only be fought with goods— th e people can only consume the goods th a t are left. The people cannot have any more goods th an are available, irrespective of the pay they get and the price they pay. But, to be realistic, to pay as we go would prevent profits and we are yet too much profit-minded to adopt such a simple solution as to tax ourselves equitably and in full for the to tal expense which the Government incurs. So we continue to borrow and go in debt. However, this only puts an obligation on those who have thought things through to endeavor, insofar as possible, to persuade the Government to collect as much as possible in taxes levied on an equitable basis, and thereby to prevent such an increase in debt as might arouse a revolutionary spirit in the people and jeopardize the achievement of perm anent peace. Along w ith supporting the Government in every sound effort to prevent infla tion and deflation, cooperatives should naturally promote programs of rationing of scarce commodities, so th a t those who need them will receive w hatever supply is available. There are also other types of action of a similar nature, leading tow ard the achievement of perm anent peace, which also should be supported. 3. _Cooperatives should prepare a cooperative world program for consideration at the peace table and persuade the people in advance to be willing and determined to accept and support it. Reference was here made by the board to the program submitted by the League to the International Labor Office. That plan advocated the post-war organization of an international economy on a cooperative nonpolitical basis which, by accustoming people to “mutual aid in place of hostile economic competition,” would eventually make war impossible.4 4. Cooperatives should educate their members to be willing to vote funds and to send representatives to assist in the rehabilitation of the cooperatives in other countries after the war. After the First World War, the cooperatives in the United States were so weak th a t they could only struggle for their own survival. After this second world, war, cooperatives in this country should be able, with the preparations they are rapidly making in strengthening their financial structures, to render m ajor 2 Midland Cooperator (Minneapolis, M inn.), June 24, 1942. 3Consumers’ Cooperation (New York), June 1942, p. 84. i Idem, April 1942, p. 51. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 88 assistance to the stricken cooperatives in other countries. By preparing ourselves to “clasp cooperative hands around the world” immediately as soon as the oppor tu n ity arrives, the consumers’ cooperative movement of the United States can in p art repay to the cooperatives of other countries the indebtedness we owe them for their having educated us to understand our powers as consumers, for havinginspired us to begin organizing cooperatives, and for having shown us the way by their examples. Action of the Cooperative Congress, 1942 The part that cooperatives may play in post-war reconstruction was developed in a general discussion of a speech delivered at the Congress of the Cooperative League held in September 1942, by Charles W. Eliot, Director of the National Resources Planning Board, outlining the Government program for the post-war period. Certain assumptions were, he felt, to be accepted at the start: (1) A total and complete victory for the United Nations; (2) a national income of over 120 billion dollars of which upwards of 70 billions will go for items connected with the war; (3) full employment of manpower, with new skills and “vastly increased efficiency” ; (4) a large demand for consumer goods, accumulated from unsatisfied needs during the war; and (5) controls over rationing, allocations, priorities, prices, etc., that will be increasingly intensified the longer the war lasts. In comparison with these were set the following objectives: (1) The right to work, usefully and creatively through the productive years; (2) the right to fair pay, adequate to command the necessities and amenities ot life in exchange for work, ideas, thrift, and other socially valuable service; (3) the right to adequate food, clothing, shelter, and medical care; (4) the right to security, w ith freedom from fear of old age, want, dependency, sickness, un employment, and accident; (5) the right to live in a system of free enterprise, free from compulsory labor, irresponsible private power, arbitrary public author ity, and unregulated monopolies; (6) the right to come and go, to speak or to be silent, free from the spyings of secret political police; (7) the right to equality before the law, w ith equal access to justice in fact; (8) the right to education, for work, for citizenship, and for personal growth and happiness; and (9) the right to rest, recreation, and adventure; the opportunity to enjoy life and take p art in an advancing civilization. Post-war plans to attain these ends must take into account the war weariness that follows a long struggle, the fears of business depression, and the hope of a “boom,” that may result in too speedy relaxation of controls. “Post-war adjustment plans must head off both boom and depression and substitute orderly gradual progress.” This will necessitate that such plans have a definitely dynamic quality. In the speaker’s opinion, “the democratic way to an expanding economy is through purchasing power and freedom of choice in the hands of the consumer.” * * * We .have discovered th a t it is the existence of a m arket rath er than restrictions on production which limits our economy. The survival of economic democracy after the war thus seems to depend upon our finding a m arket which will call upon our productive capacity to work a t a rate which will provide reason ably full employment. Only by assurance of such a m arket can the whole cycle of purchase, production, employment, and purchasing power resulting from em ployment be completed. The steps to this end, to be included in the Government program are: (1) Dismissal allowances for service men and workers in war industries, payable until they are again absorbed into peacetime employments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 89 (2) In order to increase purchasing power, a reversal of wartime measures (taxes, wage limitations, compulsory savings, etc.) restrict ing purchases. (3) Improved health, education, recreation, and other services for the underprivileged third of the population, or housing paid for in whole or in part at public expense. (4) Greater use of cultural goods and services. (5) Larger and quicker use of savings or “venture capital,” in duced by Government assistance to new ventures, such as in clearing away obsolescent plant, in assembling properties for reorganization and redevelopment, in simplification of tax policies, in new ways of financing projects, and in exploration of new forms of joint private and governmental partnership in new ventures (possibly cooperative experience comes in here). In planning the “preparedness campaign” for the post-war peace time, the National Resources Planning Board includes in its program the following items: Plans for the return of service men to their former jobs, for men let out of war industries, and for the reconversion of the war industries themselves; plans not only for public works, but for rebuilding cities and terminals, new transportation facilities, etc.; plans for services in the field of health, nutrition, medical care, education, recreation, and research; plans for broadening the present scope of work relief, social insurance, and public assistance; plans for labor and its participation in the new expanding economy, including not only working conditions, rates and hours, but also relations with management and the consumer, and the training of new skills; plans for bringing into the program the various regions, States, communi ties, private citizens, local enterprises, and professional groups; plans to deal with finance and fiscal policies; and plans for international action, in which field the Board is collaborating with the Department of State and the Board of Economic Warfare. In the discussion that followed Mr. Eliot’s speech he pointed out that the best service cooperatives can render toward “building the future we want” is to organize their communities for the discussion of post-war problems and mapping out suggestions and plans toward their solution for the use and guidance of the National Resources Planning Board. In turn? with the theme of the congress were speeches by Dr. James P. Warbasse, former president of the Cooperative League, on “The organization of the world on a cooperative basis after the war,” and by Neil S. Beaton, president of the Scottish Cooperative Wholesale Society, on “A world cooperative democracy.” R E SO LU T IO N S OF T H E CO O PERATIVE CONGRESS Several resolutions adopted by the Cooperative Congress dealt with planning for post-war conditions. One of these directed the board of directors of the League to appoint at its next regular meeting or a special meeting called for the purpose a national planning committee to draw up a 5-year program, to coordinate cooperative activities with those of the National Resources Planning Board, and to submit the program to a special meeting of regional cooperatives or to the next congress of the League. Another resolution provided for the appointment of a standing committee on development of post-war https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 90 Monthly Labor Review—January 1943 planning, with the special duty of keeping in touch with similar groups in other fields. A third provided for the immediate election of a com mittee of three “to set on foot a scheme of transportation, through cooperatives, of commodities after the war to countries needing such distribution,” this committee to cooperate with the American Red Cross and other established agencies. Members elected to this com mittee were Howard A. Cowden, president and general manager of Consumers Cooperative Association, a regional wholesale which until the outbreak of war was active in international trade with European cooperatives; Dr. James P. Warbasse, former president of the Coop erative League, chosen because of his wide first-hand knowledge of European cooperatives and conditions, and Leslie Woodcock, manager of the Eastern Cooperative Wholesale. Action on International Scale At the first world conference of the World Federation of Interna tional Groupments, held in New York City, December 4, 1942, Dr. James P. Warbasse stressed the need of the following action for post war reconstruction: 1. Im m ediate restoration of the freedom of cooperatives in the occupied coun tries a t the close of the war. 2. Use of cooperatives as agencies for shipping and distribution of post-war relief. Goods should not be given away b u t sold to th e consumers.on long-term credit to remove the stigm a of charity. Cooperatives can function in all coun tries and make profit from none. 3. Avoid the tem porary m akeshift of relief by setting up cooperatives which use methods of rehabilitation th a t are so good they will continue as a perm anent p a rt of the program of reconstruction. 4. Encourage a concerted uprising of cooperators, not w ith arms b u t with ideas, in all occupied countries to rebuild their former cooperatives. 5. Develop central national leagues or wholesales for production and distribu tion of commodities and services and expand trade between national wholesales for trem endous international trade. 6. In colonial countries political governments will be confronted w ith the op portunity of the ages to develop a greater sense of responsibility among the people by educational campaigns to teach and guide people in the way of self-help rather th an giving them charity. Upon the degree to which this principle of self-help is observed hangs the fate of civilization. Early in March 1942 the Cooperative League announced the forma tion of the International Committee for Cooperative Reconstruction, the duty of which was to be “to assist in the reconstruction of coopera tives in war-torn countries after the war and to encourage the use of cooperative methods in general post-war reconstruction.”5 The committee is composed of a group of executives of cooperatives now in exile in America from the occupied countries in Europe, a number of American cooperative leaders, several economists and other public men and representatives of several countries outside of Europe in which cooperative activities are playing an increasingly important part. Dr. J. P. Warbasse, president-emeritus of the Cooperative League, is chairman. It was stated that the committee would go to work immediately on several projects: (1) Mobilizing the experience and the services of cooperative leaders now in exile, for reconstruction work in their home countries or for specialized work in American cooperatives; (2) serv ing as a clearing house for information on developments in the occu4 Cooperative League News Service, March 12.1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 91 pied countries; (3) encouraging Government and other agencies to make cooperatives an important part of all programs of democratic reconstruction; and (4) preparing short-wave broadcasts and other materials designed to reach into occupied Europe. The committee will work with The Cooperative League of the U. S. A. and the Interna tional Cooperative Alliance, London, in all of its enterprises. #+#####* E L E C T R IC IT Y COOPERATIVES, 19411 DURING the first 5 years of its operation the rural electrification program brought about tremendous changes in the rural and farming areas. On December 31, 1934, a little more than 4 months before the Rural Electrification Administration was established, only 10.9 per cent of the farms in America had central-station electric service; on June 30, 1941, the proportion had risen to 34.9 percent. More farms were electrified during the 5 years ending in January 1940 than during the entire previous 50 years. At the beginning of 1935 there were only 743,954 electrified farms as compared with 2,126,150 at the end of June 1941. Significant progress was also made in reducing construc tion costs to a level permitting the average farmer to use electricity in his home and work. By the end of 1941, allotments aggregating $433,988,321 had been made under the program, to 869 borrowers, for the construction of rural lines and electrical facilities. Of these borrowers, 793 were non profit or cooperative enterprises. REA lines were operating in 73.9 percent of the 3,078 counties in the United States at the beginning of 1942, as compared with 52.5 percent at the end of October 1939. In 1942 the REA-financed lines, which are largely cooperatively owned, were operating in every county in Arkansas and New Hampshire and in over 90 percent of the counties in Georgia, Indiana, Iowa, Kentucky, Minnesota, Mississippi, Missouri, South Carolina, and Tennessee. Electricity cooperatives which had received allotments were in oper ation in all but 5 States; these were Connecticut, Massachusetts, Nebraska (public power districts took the place of electricity cooper atives in this State), Nevada, and Rhode Island. The appliance survey undertaken by the REA during the first 6 months of 1941 indicated a growing use of electrically operated appli ances and farm equipment. Socket-power radios, flatirons, washing machines, refrigerators, electric pumps, poultry lighting devices, and cream separators were among the popular appliances being used. Considerable ingenuity and inventiveness in the use of home-made apparatus were reported on numerous occasions. In view of the restrictions placed upon the manufacture of electrical devices during the war period, the REA has endeavored to encourage further this development through its educational program. Because of the shortage of critical materials required by the war effort, no new REA-financed lines are being started except where the lines provide electric service for war purposes. There is veiy little likelihood that any new associations will be organized, or that estab lished ones will be expanded, during the war period, and there is a 1 Data are from U. S. Rural Electrification Administration, Report on Allotment, Construction, Operat ing, and Financial Statistics of REA-financed Systems, December 31, 1941; Congressional Hearings; and unpublished data supplied to the Bureau of Labor Statistics by the Rural Electrification Administration. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 92 Monthly Labor Review—January 1943 strong possibility that many of the going associations will have to curtail their operations. Strenuous efforts were made by the REA cooperatives during the year, however, to meet the increased demands for service resulting from the efforts of farmers in the defense program as well as from war industries and the armed forces. In hearings before a Congressional Committee it was revealed that not only had the rural electrification cooperatives invested over $1,000,000 in war bonds, but they had made direct contributions to the war program by aiding in the production of necessary food prod ucts. Electricity enabled the members to substitute mechanical power for manpower and thereby release men for the armed services and for war work. At the beginning of 1942, REA-financed systems were serving or preparing to serve 36 war projects, 222 airplane beacons, 36 intermediate landing fields, and 52 aircraft radio facilities. Financial Record of Electricity Cooperatives Cooperative associations financed by the REA reported operatingrevenues of $33,400,701 for the year ending December 31, 1941. As of that date, 329,554 miles of line had been put into operation, serving850,458 consumers. During the year the kilowatt-hours of current purchased by the associations amounted to 808,493,528, of which 83,058,284 kilowatt-hours were generated by the associations them selves. As of November 30, 1941, the total due on current notes outstanding was $13,637,396 and the total payments on these accounts, excluding overpayments, amounted to $13,497,935 or 99.0 percent of the amount due. Delinquencies totaled $139,461 and were attributable to only 14 of the 869 borrowers to which allocations had been made. In the case of 10 of the 14 delinquent borrowers, the amounts involved were less than $4,000 each. On December 31, 1941, payments made amounted to $12,586,395 or 99.5 percent of the $12,652,789 due. Delinquent accounts of, 71 associations amounted to $66,394, but there were 296 associations which had made advance payments on their notes to the extent of $3,702,651. A summary of operations, by States, is given in the accompanying table. Statistics of REA-Financed Cooperatives, Year Ending December 31, 1941 State or Territory Number of coopera tive borrowers Total allotments Number of Number of Number of energized consumers miles coopera energized connected tives Operating revenues Total_________________ 793 $408,213,368 706 329, 554 850,458 $33,400, 701 Alabama . . . ______ A la s k a ..___ ______ Arizona ____ ___ . ___ Arkansas . . . . . . _____ California.. . . . . Colorado . . . . . . . . . Delaware. . ___ Florida . . _______ _ Georgia. . _____. _____ I d a h o _____ _____ ___ Illinois .. __________ Indiana . . . . . . . . Iow a... ____ ___ ___ _ Kansas_______________ 21 2 1 11,706,049 295,000 708,000 10, 540, 500 1,351, 500 8 , 094,000 978,000 4, 299,500 23,082, 209 3,619,750 21,415,630 21,391,779 24,488,834 9,778,151 17 8,744 (*) 258 6,877 757 4, 657 973 2,600 19,685 2,731 18,059 20,389 22,411 8,145 25,093 807,153 (') 39,954 559,809 134,023 587,662 117,446 206,975 1,705,163 263,822 1,930,885 2,310,635 2,493,667 537,346 * N o t in operation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 4 18 1 12 44 9 27 44 50 24 (') 1 13 3 15 1 10 41 9 26 43 47 20 (0 608 16,847 2,019 10, 275 2 ,6 8 6 5, 806 57,939 5,882 44, 006 60,872 47,915 13, 597 Cooperation 93 Statistics of REA-Financed Cooperatives, Year Ending December 31, 1941 State or Territory Number of coopera tive borrowers TCp.ntneky ___________ Louisiana . ___________ Maine________________ M ary land ________ Miehigan __ _________ Minnesota _______ Mississippi ________Missouri. ___ ______ Montana ________ New Hampshire - ____ ]STp,w .To,rsbv __________ NTp.w Mexico _ _______ New York ____ - ___ North Carolina _ ___ North Dakota_________ Ohio _ _ _ _______ Oklahoma - ________Oregon __ _ ______ Pennsylvania _ __ Sont.b Carolina _____ South Dakota_____ Tennessee. _____ _____ Texas. _______________ Utah _ _ _ ___ ___ _ Vermont _____________ Virginia - - _____ - ___ Virgin Islands ________ Washington . ___ ___ W est V irginia W isconsin ___________ W yom in g _______ - ___ i N o t in operation. 26 13 4 2 13 52 23 36 13 1 2 5 6 29 8 28 23 13 13 24 11 21 72 3 3 15 1 14 2 32 11 Total allotments $14,442,020 5,068,100 661,500 1,758,500 13,157,500 28,745,445 13,435,953 18,285,200 3,678,598 1,674,000 510, 800 1,233,000 2,060,000 13,720,200 4,464,472 18,071,993 10, 512,591 4, 674, 500 11,282,700 7,487, 500 3,333,500 12,421, 500 35,109,174 1,307,000 1,091,000 9,120,300 275,000 5,646,200 1,362,000 18,577,420 3, 296,800 Number of Number of Number of energized consumers miles coopera energized connected tives 25 11 2 2 13 45 22 35 12 1 2 4 0 ) 26 6 27 21 12 13 21 6 17 65 3 3 15 1 12 2 27 9 11,213 4,201 283 1,097 9,230 24, 310 1 2 , 280 15,384 2,847 1,373 355 904 (>) 10,640 2,280 16,219 10,155 1,897 8,652 8,657 1,685 7,944 33,187 544 622 7,817 53 4,016 430 13,244 1,749 Con. Operating revenues 31,438 11,082 708 2,830 28,184 48,681 41,911 32,723 6,463 2 , 281 1,188 1,997 (0 31,525 4,198 47,807 19, 607 4,732 25, 287 24,166 2,933 48,666 72,817 1,724 1,489 20,836 304 7,236 1,188 29,215 3,697 $1,152,716 425,015 22,966 123,170 U 1)^3,9/5 2,596,336 1,212,746 1,313,834 333, 518 43,410 61,023 100,491 (0 786,080 222,558 1,929,524 792,176 183,781 957,084 645,495 126,402 2,213,982 2,285,513 67,000 47,837 835,102 0 330,069 34,299 1,654,888 175,172 2 D ata not available. FEA TU R ES OF COOPERATIVE HOUSING 1 THE question of housing lias in recent years increasingly engaged the attention of the people and the public authorities, because of its effects on health and on economic life as a whole. The complexity of the housing problem has induced numerous countries to adopt housing policies, based on statistical inquiries and special surveys regarding housing conditions. Large-scale public housing projects have been carried on all over the world. The provision of living accommodations has become a matter of world-wide interest as well as a vital problem for the average household, for which this single item represents from 20 to 25 percent of the total family budget. * * * Depending upon the angle of approach, the efforts to solve the housing problem may be roughly divided into commercial housing, government and public housing, limited-dividend projects, and co operative housing. . . . Commercial housing.—Since comparatively large investment is involved in home ownership, the great majorities of the population of the cities are housed by commercial builders on a rental basis. Houses constructed by these builders as a commercial venture not only serve as homes to live in but also are investments and means ol obtaining profits. As a result, the factors most closely affecting the occupant—such as sanitation, conveniences, and choice of the site— are for the builder primarily marketability features. Also, the tenant, i Fxppm ts from in troductory chapter of C ooperative H ousing (report issued b y T h e C ooperative Project N ew V o r ^ C it y 11Works P roje cits A dm inistration, w ith th e assistance of th e E dw ard A F ilen e Good W ill F u n d , Inc.; the project is under the sponsorship of th e U . S. B ureau of Labor sta tistics). 5 0 1 1 5 2 — 4 3 --------7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 94 Monthly Labor Review—January 1943 if he is a renter, usually regards the dwelling as temporary quarters only, and may therefore not be particularly concerned with its best appearance or maintenance. All of these factors, if not controlled, contribute considerably to overcrowding, congestion, and creation of slums. Government housing.—Government action in housing usually involves financial measures, such as direct subsidies from the central and local authorities, mortgage loans, advances of capital at low rates of interest, etc. Although interest in housing on the part of governments is of comparatively recent origin, government action has proved indispen sable in most countries in order to provide the lower-income groups of the population with dwellings meeting the housing standards devised by modern science. At the same time two essential difficulties are usually inherent in governmental action as a method of solving the problem of housing. The first is the difficulty of engaging the active interest of the beneficiaries themselves and of preventing destruction of the spirit of self-help. The second is of an organizational nature; public-housing experience all over the world indicates that the govern mental machinery is often too complicated to insure a smooth ad ministration, there may be shifts of responsibility from one agency to another, and the proper coordination of the efforts of central and local authorities is hard to achieve. As a result of this, government housing may become very expensive and its successes in regard to one part of the population may be attained at the expense of another. Limited-dividend, projects.—The limited-dividend method of housing is semiphilanthropic in nature. It originates in the inability of the lower-income groups to keep pace, in paying rents, with the develop ment of higher standards of dwellings, and in the consequent gradual withdrawing of commercial housing from the low-cost market. It is for these low-income families that limited-dividend housing is designed . Although directed toward a real need, this type of housing project has rarely developed to the point of acquiring any considerable social and economic importance, and up to the present has played a relatively small part in the solution of the housing problem. Primarily philan thropic in motive, some limited-dividend projects nevertheless repre sent a manifestation of cooperative spirit and do approach, therefore, cooperative housing. Cooperative housing—In the case of cooperative housing, the diver sity of forms, objectives, and methods of operation is very great. The housing cooperatives, as to their organizational forms, range from savings associations in Denmark, and the earliest forms of the build ing and loan associations, to various garden city projects and “gen uine” housing cooperatives. The characteristic features of a genuine housing cooperative are as follows: (a) Each member has one vote, regardless of the number of shares held. (b) The buildings are bought or constructed by the association as such and not by the members individually. (c) Each member owns shares in the association to the value of the dwelling he occupies and does not receive title to any individual dwelling; legal ownership is held by the association as a whole. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 95 Cooperative Housing—Extent and Variations In actual practice a relatively small proportion of the housing coop eratives adhere strictly to all of the principles noted above. For instance, in a group of 35 associations in this country, studied by the Bureau of Labor Statistics in 1936, in only 3 was each member allowed one vote on administrative decisions regardless of the number of shares held (Monthly Labor Review, November 1937). In Europe, probably in no other branch of the cooperative movement has devia tion from the accepted principles been so frequent. Under these circumstances it is sometimes difficult to draw an exact fine of demar cation in defining what constitutes cooperative housing. Also, authorities differ in their classification of associations in the housing field, and for this reason statistics brought together from various sources have to be examined carefully to be sure of their com parability. Thus the 10,073 housing cooperatives shown for the United States in the statistics of the International Labor Office, for 1939, included 10,025 building and loan associations. The U. S. Bureau of Labor Statistics publishes data on such associations but classifies them as semicooperative and regards them as financing rather than housing organizations. That this view is shared by the Cooper ative League of the U. S. A. is indicated in a statement in its periodi cal, Consumers’ Cooperation, that the building and loan association is “nothing more than a cooperative bank, which helps individuals to build their own homes by lending them money for that purpose at a fair rate of interest and giving them long-term mortgages on easy conditions.” * * * [However,] Their motive is service and not private profit; they could be adapted and developed into genuine cooperatives; and they certainly represent a manifestation of cooperative effort applied in the field of housing. The advantages of cooperative housing are both economic and social. Member-owners in genuinely cooperative apartments receive back, over a period of time, at least part of their original investment, in the form of lower monthly payments (“rent”) as the amount of princi pal owed is reduced. Cooperative housing develops the spirit of self-help and cooperative action by imposing upon each member the responsibility of joint ownership and operation of the building in which he lives. The democratic form of administration inherent in the housing cooperative gives the members a liberal education in democracy in action, creates a common bond among them, and goes a long way toward eliminating the usual indifference of the ordinary city dweller toward his neighbors. Joint activity in running the build ing may easily lead to other cooperative activities. Among those carried on by cooperative housing associations in the United States are the following: Operation of cooperative laundry, library, nursery school, playground, garage, restaurant, and store, and cooperative purchase of ice, electric current, and milk. Because of the ownership factor and the personal interest of the member-occupants, there is always the incentive for proper maintenance of the building, so that cooperative property does not degenerate into slums or become a detriment to the community. The obstacles to cooperative housing cannot be disregarded, how ever. It may be an arduous task to find a homogeneous or congenial https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 96 Monthly Labor Review—January 1943 group of members, especially in the large cities. Ignorance of the cooperative idea also retards the growth of cooperative housing. Of particular importance is the fact that few groups can provide sufficient funds to cover the entire construction costs, and the difficulties in securing funds or credit for this purpose are many; this is one of the prime reasons why cooperative housing in the United States has not been particularly successful in reaching the low-income groups for which the problem of housing is of especial importance. An indication of the development of cooperative housing (including building and loan associations) in some of the countries of the world may be obtained from the following data, published by the Inter national Labor Office in 1939 in its report, Cooperative Societies Throughout the World (pp. 22, 23): Number of associations A ustria-----------------------------------------------290 Czechoslovakia________________________ 1 ; 341 ’ 437 F rance-----------------------------------------------G erm any--------------------------------------------- 3 , 650 G reat B ritain --------------------------------------- 1 , 3 3 3 Ita ly --------------------------------------------------- 1 , 204 Sweden------------------------------------------------ 1 , 000 A ustralia--------------------------------------------180 In d ia-------------------------------------------------200 United S tates--------------------------------------- 10 , 073 Membership 38,711 71 909 3 3 ’QOO 736, 757 2 , 121, 090 71,000 40,000 81,106 6,300 5, 002, 248 Cooperative Housing in Certain Foreign Countries Great Britain.—From the historical point of view the British cooper ative movement was the first to be concerned with the housing problem. Although England developed the earliest industrial slums, as the price for her leadership in the industrial revolution, she also assumed the leadership, in the 1850’s, in the movement to remedy slum con ditions. The British Utopians contributed to the “garden cities’' movement, and the garden cities of Letchworth and Welwyn produced that cottage-and-garden type of housing which has been considered traditionally an ideal for cooperative housing. The English housing cooperatives have practically all built their houses outside of the limits of the cities. However, most of these cooperatives have for their objective the financing of low-cost individual houses rather than cooperative ownership and management; they therefore resemble the American building and loan associations, rather than the genuine housing cooperatives. Among the oldest British societies are the Woolwich Equitable founded in 1847 (apparently the oldest of the societies existing in Great Britain today), Leeds Permanent (1884); National (1849)and Halifax (1853). By 1890 there were 2,795 “ building” societies in Great Britain, with 646,388 members. The Homestead Tenants, Ltd., one of the largest societies in Great Britain, has financed the building of over 5,000 houses. The local societies long ago federated into a national organization, maintaining a staff of architects and expert builders, and serving as a financial center and agency central izing the purchases of building materials for member associations. Denmark.—In Denmark, comparatively few housing associations can be considered as entirely cooperative; the form and methods of the government aid which they receive provide all features of public, rather than cooperative housing. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 97 The Workmen’s Cooperative Building Society, organized in Copen hagen in 1912, is an example of the genuine housing cooperatives in Denmark. Each apartment house of this society operates as a separate branch of the main society and is under independent manage ment. The society itself therefore is somewhat like a federation of cooperative housing associations, and has not only been successful in its building activities but has also undertaken its own production of building materials. Switzerland.—There were no housing cooperatives in Switzerland prior to 1900, but by 1932 there were 130 of them, which with the aid of the State and communes had been successful in bringing about a substantial lowering of rents. Although, as was noted by the Ministry of Public Health in 1933, Switzerland has not had the acute housing shortage which necessitated public and cooperative action in most other European countries, it has contributed one of the bestknown examples of cooperative housing. The name of the coopera tive community “ Freidorf” (near Basel), founded in 1919, is known to cooperators all over the world as one of the most successful co operative housing projects. The village consists of about 150 houses, most of which are occupied by the members and employees of the Swiss Cooperative Union. Community enterprises include a com munity building, a cooperative grocery store, and one of the best European schools for training cooperative shopgirls. Czechoslovakia.—In Czechoslovakia, housing cooperatives formed the most numerous group of three types of the so-called “ public benefit housing,” which constituted a significant part of the housing policy of the former Czechoslovakian Government. These coopera tives were under supervision of the Ministry of Social Welfare and were required to confine their activities to the construction of houses and to the sale or leasing of family dwellings and other available spaces in such houses. Sweden.—Although the early housing associations bore little re semblance in their practices to the present accepted principles, it is nevertheless true that in Sweden, more than in any other country in the world, cooperative housing has been closely related to the general cooperative movement. . . The earliest housing societies in that country were three associations formed in Stockholm between 1870 and 1880. In the Swedish capital housing conditions were such that, according to the GovernorGeneral of Stockholm, “ many respectable working men with their families had been forced to seek shelter in garrets and outbuildings where it was impossible for them to protect themselves from the cold.” In the 15-year period beginning in 1870 rents increased by as much as 80 percent. The early housing societies in Stockholm were called housing clubs” (Bostadssallskap) or “ workmen’s housing associations” (.Arbetarbostadsbolag). Since no appropriate cooperative legislation existed at that time, they were organized as stock companies. It was the prac tice of most of these societies to buy houses already built, which they then would rent (not sell) to members. The first important cooperative milestone was reached on June 21, 1916, when the Stockholm Cooperative Society was founded. This society, also, was primarily a rental society; to safeguard the tenants’ leases, however, its statutes provided that the society itself https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 98 Monthly Labor Review—January 1943 could not break a lease if the tenant had lived up to the conditions of die contract. The tenant, however, was free to terminate the lease. Each tenant-member had to invest 10 percent of the cost of his apart ment, in return for which he received the apartment at a rental much lower than the current rate. On withdrawing from the society, a member was reimbursed the full amount paid down, as well as accumulated interest. Thus 10 percent of the cost of the housing was furnished by the members; the other 90 percent consisted of loans (obtained mostly from the city). The Stockholm Cooperative Housing Society is still in existence and is today one of the principal real estate owners of the city. In 1937, its houses contained accommodations for 2,000 families and its membership numbered 2,429. In 1917, as a protest against the wild speculation in private real estate, a Tenants’ Union was organized in Stockholm and Gothen burg. Gradually similar unions were formed in other cities and in 1922 all of them combined into a national society. In a letter sub mitted to the Swedish Government, the Stockholm Union asked per mission to arrange a lottery with prizes aggregating about $750,000. rhe surplus was to be used for the construction of 800 apartments for the members. The Government approved the plan and the next year the building program was started. The plan to continue the lotteries was, however, later vetoed by the Government under pres sure of private owners. Not until 1922, when the housing situation went from bad to worse, was the plan resurrected. By that time it had become clear that only a firm and permanent organization could insure sane systematic cooperative action. It was this need for a strong organization that gave birth to the idea of the Tenant’s Savings and Building Society (popularly known as “ H. S. B.”). The first II. S. B. society was organized in Stockholm in 1923 and was rapidly followed by others. A national H. S. B. association was formed in 1926. The organizational arrangement of the H. S. B 1S ,follows: EveiT cooperative building constitutes a separate locai or “ daughter” society which represents the members as owners of the building, attends to the management of the building, and functions as an economic and legal unit. In every city there is a parent society which organizes the locals, assists them in constructing the buildings and then turns the buildings over to them, relinquishing all further legal rights, except those specified in the contract. All the parent societies are federated into the National H. S. B. Society. The latter operates as a financial center, obtains loan funds from the Government, sells “ building loan certificates,” and accepts from the members deposits in its savings fund. It has created a unified purchasing agency through which pass all orders for materials that go into the numerous H. S. B. houses; it also has an architectural office. A high standard of housing has been, from the very first, one of the chief aims of the H. S. B. It also has done a good deal to im prove city planning in Sweden. Today H. S. B. has numerous factories producing building materials; it has initiated a special “ H. S. B. Home Protection Insurance” for its members; and has extended its activities to the development of a summer colony, “ Arsta Havsbad,” in one of the most beautiful seashore districts of Sweden. Cooperative nurseries and playgrounds are integral parts of almost every H. S. B. house. The recent achievements of H. S. B. are the so-called “ Co https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperation 99 operative Children’s Hotels,” where children are received for care when their parents for some reason cannot keep them at home or must be away for a few days. * * * The International Labor Office notes, in its statistics throughout the world, altogether 21,474 associations with 8,408,354 members. These figures indicate that, in comparison with the need, cooperative housing is still insignificant. The discrepancy between accomplish ment and need is still more apparent in view of the serious worsening of the housing problem which has been brought by the war. Un doubtedly housing will be among the other problems with which the whole world will be confronted in the formidable task of the post-war social and economic reconstruction. Of course, cooperative housing cannot solve the problem alone. But by a steady and peaceful progress the cooperative movement can greatly contribute both to the eleva tion of the standard of housing all over the world and to the develop ment of the spirit of self-reliance, initiative and cooperation in the broadest and best meaning of the word. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cost o f Living CHANGES IN COST OF LIV IN G IN LARGE C ITIES, N O V EM BER 15, 1942 LIVING costs of city families rose 0.7 percent between October 15 and November 15,1942. Most of the increase was due to the rise in food costs, particularly those not under OPA control, to higher charges for personal and professional services, and to the new excise taxes effective on November 1. These taxes—on cigarettes, cigars, telephone calls, and railroad fares—resulted in an increase of 0.1 percent out of the total increase of 0.7 percent in living costs. Since mid-May, when the General Maximum Price Regulation be came effective, food costs have moved up 7.8 percent and costs of all other goods and services, 0.6 percent. Today, prices of almost every thing important in family spending, with the exception of some fresh fruits and vegetables (constituting, with a few other foods, about 10 percent of the family food budget), and all personal and profes sional services are controlled by Government regulations. Rent ceil ings have been announced for all cities. About 12 percent of the family budget thus remains uncontrolled. The following figures show changes from October 15, 1942, to November 15, 1942. Percent of change, Oct. 15,1912, to Nov. 15,19/,2 All item s____ _ __ __ _ _ Food________________________ Controlled by OPA on November 17_ Under March ceilings ____ Ceiling adjustm ents perm itted in October Under price freeze of October 5 Uncontrolled by OPA on November 17 Clothing _ _ _ R ent__ Fuel, electricity, and ice _ . _ Housefurnishings__ __ _ __ _ Miscellaneous______ -t-0 7 4 -1 2 ----------------------- +. 5 ----------------------- + 1 .1 ----------------------- + . 8 ----------------------- + 6 . 6 ----------------------- 4-, 1 i (2) --------------------------------------------- 4-. 1 + .8 1 Includes lamb prices, frozen on August 1 . 1 No change. By November 15, the index of living costs for city wage earners and lower-salaried workers had risen to 119.8 percent of the 1935-39 average, and 21.5 percent above costs in August 1939. Food costs.—The average family food bill rose by 1.2 percent be tween mid-October and mid-November. Most of this increase was in prices of the fresh fruits and vegetables and fresh fish which are not under direct control by the Office of Price Administration. These advanced 6.6 percent and by mid-November were selling 21 percent higher than in May 1942. Food prices under direct control of the 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cost of Living 101 OPA advanced 0.5 percent during the month, as quotations moved up for a number of products whose prices have recently been adjusted under OPA regulations, such as lard, canned fruits and vegetables, and canned fish. Prices also increased for eggs and butter, brought under OPA control on October 5. All cities surveyed in the New England, Middle Atlantic, Mountain, and Pacific areas reported increases in food costs, while three cities in the South showed decreases because of locally lower prices for fruits and vegetables. San Francisco showed the greatest increase (3.5 per cent), while Savannah reported the largest decline (0.8 percent). The Bureau’s index of retail food costs for November 17 stood at 131.1 percent of the 1935-39 average, the highest point reached since January 1930. The cost of food was 16 percent higher than at the same time in 1941. It has increased 40 percent since the outbreak of the war in Europe, when food prices were unusually low. Clothing and housejurnishings.—Cost of both clothing and liousefurnishings rose, on the average, 0.1 percent over the month. A few seasonal clothing articles were marked down to sell out (women’s coats in certain cities, for example), while for some goods increases were noted, where prices were returned to pre-sale levels. In 14 of the 21 cities, advances were reported in prices of men’s business shirts. Prices of sheets advanced in several cities. There were continued reports of shortages of blankets. Rents.—-Only slight changes in rents occurred during November in the cities surveyed by the Bureau of Labor Statistics. Houston was the only exception, and in that city the rental bill of moderate-income families dropped 1.1 percent between mid-October and mid-November, as a result of Federal control established on November 1. In three other cities where rents were placed under Federal control on Novem ber 1, rents remained unchanged between mid-October and midNovember. In Cincinnati, on the other hand, in spite of the imposition of Federal control on November 1, the average rental bill rose 0.2 per cent. In Seattle, where Federal control has been in effect since June 1, rents continued to decline, dropping 0.2 percent during the month. Fuel costs.—Higher wood prices in Manchester, and increased bi tuminous-coal prices in several mid-West cities, authorized by OPA were the outstanding changes in fuel costs. In New York, the rate charged for gas for domestic use was advanced as usual at tbis season of the year. Other goods and services.—Increases in the cost of miscellaneous goods and services, which averaged 0.8 percent over the month, were due in large part to the new excise taxes, imposed on November 1 on cigars, cigarettes, telephone calls, and railroad fares. In addition, there were advances in hospital and medical charges, and in beautyand barber-shop services in a number of cities. In a few cities, in spite of OPA controls, increases were reported for laundry and auto repair charges. These increases were in part counterbalanced by declines in automobile-insurance rates, which were lowered because of the general decrease in driving. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102 T Monthly Labor Review—January 1943 able 1. Percent of Change in Cost of A ll Goods Purchased by Wage Earners and Lower-Salaried Workers in Large Cities over Specified Periods Percent of change from— Area and city Nov. 15, 1941, to Nov. 15, 1942 Percent of change from— Area and city Dec. 15, 1940, to Nov. 15, 1942 Average: Large cities_______ +8.7 +19.0 New England: B o sto n .......... Middle Atlantic: Buffalo_______________ New York___ . .. Philadelphia___________ Pittsburgh____________ East North Central: Chicago____ _____ ___ Cincinnati______ ____ Cleveland____ ______ Detroit_____ _______ West North Central: Kansas C ity.................. . +9.4 +19.9 + 8 .8 +9.0 +9.5 + 8 .1 +20.7 +17.4 +19.7 +17.8 +7.6 + 8 .1 + 8 .1 +7.1 +18.2 + 2 0 .1 +19.6 +19.4 +7.9 +18.6 Nov. 15, Dec. 15, 1941, to 1940, to Nov. 15, Nov. 15, 1942 1942 West North Central—Con. Minneapolis__________ St. Louis__________ South Atlantic: Baltimore________ Savannah___________ Washington, D. C_____ East South Central: Binningham_______ West South Central: Houston Mountain: Denver __ Pacific: Los Angeles________ San Francisco____ Seattle................... _ +7.5 +7.8 +16.4 +17.2 +8.7 + 8 .8 + 8 .8 +20.4 + 2 1 .6 +18.6 +5.6 + 6 .6 + 8 .0 +17.7 +15.9 +18.3 +10.9 +11.7 +9.5 +20.5 + 2 1 .6 + 2 1 .8 T ab le 2. Percent of Change, Oct. 15 to Nov. 15, 1942, in Cost of Goods Purchased by Wage Earners and Lower-Salaried Workers in Large Cities, by Groups of Items. Area and city Average: Large cities______ New England: B o sto n ....... Middle Atlantic: Buffalo________ New York____ Philadelphia__________ Pittsburgh______ . East North Central: C hicago________ Cincinnati____ Cleveland___ Detroit______ West North Central: Kansas City__ __ Minneapolis__ _ St. Louis_____ .. South Atlantic: Baltimore________ Savannah_______ Washington, D. C . . . East South Central: Birmingham West South Central: Houston Mountain: Denver Pacific: Los Angeles____________ San Francisco______ Seattle___________ Based on data for 51 cities. 2 Based on data for 21 cities. 1 3 No change. 4 Based on data for 34 cities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fuel, elec Housetricity, furnish and ice ings All items Food +0.7 i + 1 .2 + .8 +1.5 + .2 0 0 + .7 + .9 + .9 + .3 +1.4 +1.7 +1.9 - .1 + .1 + .1 0 + .2 + .5 0 0 0 0 + .4 + .3 + .5 + .5 + .8 0 0 - .1 + .1 - .1 + .2 0 - .1 +• + .5 + .8 + .4 + .5 - .2 + .4 + .4 + .5 + 1 .1 3 + 0 .1 R ent 2- 0 .1 +. 8 + 1 .8 + .7 1 + .2 + .1 + .1 - .1 0 + .8 -.8 + .8 + .2 0 0 + .1 - .2 +• 1 0 0 0 0 0 -.2 + .6 - .3 - .4 + 1 .2 +• 6 + 1 .6 + 1 .1 +3.5 +1.4 + .6 Cloth ing 0 + .2 - .5 - 1 .1 (3 4) 0 + .3 + .2 0 + .1 +• 0 +• 1 0 0 0 (’) 0 0 0 0 0 0 0 0 + .3 1 + 0 .8 1 .1 + 1 .1 + 1 .0 +. 8 + 1 .2 + .6 0 0 0 + .9 + 1 .6 0 0 0 + .7 + .6 + .6 + .7 + .2 + .5 + .7 + .5 + .4 + .4 +• 2 0 + .4 2 + ~ + .2 0 0 0 -.1 0 -.2 2 + 0 .1 Mis cella neous 0 0 0 0 0 + .6 + .6 + .7 + .7 + .5 103 Cost of Living T able 3.—Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried Workers in Large Cities, by Groups of Items, Nov. 15, 1942 [Average 1935-39 = 100] Area and city Average: Large c i t ie s ___________________ N ew England: B o sto n __________________ M id d le A tlantic: . -----B u ffalo-, _________ ____ N e w Y o rk ______ ____ _____ _____ P h ilad elp h ia____________ __________ P i t t s b u r g h - _________ ____ _____ E ast N orth Central: C hicago_____________________________ C in cin n ati_____ _____ - ......... ....... ......... C levelan d ____________________ _____ _____ D etro it___- _____________ W est N orth Central: K ansas C ity ________________________ M inn eap olis________________________ St. L ou is___________________________ South A tlantic: B altim ore_______ __________________ S a v a n n a h ... ................ . . . W ashington, D . C __________________ E ast South Central: B irm in gham . -------W est South Central: H o u sto n ------------M ountain: D en ver________________ ___ Pacific: Los A ngeles_________________________ San F r a n c is c o ______________________ S ea ttle___________________ _________ 1 2 8 Fuel, elec Housefurnish tricity, and ice ings M is cella neous A ll item s Food C loth ing R en t 119.8 i 131.1 8 126. 0 8 107.9 8 106. 2 8 123. 7 2112. 6 118.8 130.4 122.4 105.1 116.3 118.3 111.4 122.8 118.5 118.6 119.1 133.7 130.2 128.2 129.6 127. 2 125.8 126.2 128.1 114.6 103.3 106.7 107.3 103.6 109.2 103.7 108.4 125.3 117.9 122.0 122.3 118.7 111.6 113.6 112.5 119.4 119.6 122.0 120.5 129.9 130.6 132.5 129.6 121.3 130.2 128.2 127.3 114.3 105.6 115.0 114.4 103.7 102.5 112.3 107.3 119.8 125.0 123.9 120.6 111.7 112.3 113.1 114.3 116.9 119.0 118.4 125.0 128.9 130.8 123.2 126.0 127.2 108.0 110.3 106.2 106.0 99.0 106.2 117.3 124.4 116.3 114.0 115.1 110.4 121.0 123.4 118.2 119.9 118.5 118.5 134.9 136.0 130.5 127.7 132. 4 129.9 125.8 127.5 131.8 126.9 126.4 123.3 106.7 114.9 100.3 120.4 107.6 109.1 104.7 108.8 103.6 100.1 92.9 99.5 127.8 119.9 129.3 119.1 122.2 122. 2 112.9 115.0 114.8 113.1 111.8 112.8 123.2 123.5 124.2 141.5 139.3 141.5 127.6 125.4 128.2 110.0 105.9 109.6 94.2 94.1 100.5 118.5 119. 2 119.6 113.8 118.9 117.4 Based on data for 51 cities. Based on data for 21 cities. Based on data for 34 cities. T able 4.— Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried Workers in Large Cities, 1935 to November 1942 [Average 1935-39=100] Year 1935 ....... ........... ............ ........... 1936 ....... ...... ........... ........ 1937 ___________________ 1938 ______ ______ _____ 1939 - _______________ 1940 ___________________ 1941 _________________ Jan. 15. _______________ Feb. 15 _______________ M ar. 15 - _____________ A p r. 15 _______________ M ay 15________________ June 15________________ July 15 ____________ Aug. 15 _ __- __________ Sept 15 _____________ Oct 15 __________ Nov. 15 - ___________ Dec. 1 5 ________________ 1942* Jan. 15_________ _______ Feb. 15 - ............ .......... Mar. 15- ________ ____Apr. 1 5 ________________ M ay 15________________ June 15__ - ____ _________ July 15 ____________ Aug. 15________________ Sept. 15 _____________ Oct. 15 ............ - ................ Nov. 15---.......... - ............. - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis All items 98.1 99.1 102.7 1 0 0 .8 99.4 1 0 0 .2 105.2 1 0 0 .8 1 0 0 .8 1 0 1 .2 1 0 2 .2 102.9 104.6 105.3 106.2 108.1 109.3 1 1 0 .2 110.5 1 1 2 .0 112.9 114.3 115.1 116.0 116.4 117.0 117.5 117.8 119.0 119.8 Food Clothing Rent 113.1 113.1 113.8 114.8 94.2 96.4 100.9 104.1 104.3 104.6 106.2 105.0 105.1 105.1 105.4 105.7 105.8 106.1 106.3 106.8 107.5 107.8 108.2 116.2 116.8 118.6 119.6 116.1 119.0 123.6 126.5 126.2 125.3 125.3 125.2 125.8 125.9 126.0 108.4 108.6 108.9 109.2 109.9 108.5 108.0 108.0 108.0 108.0 107.9 100.4 101.3 105.3 97.8 95.2 96.6 105.5 97.8 97.9 98.4 96.8 97.6 1 0 2 .8 1 0 2 .2 100.5 101.7 106.3 100.7 100.4 1 0 2 .1 1 0 0 .6 1 0 2 .1 102.4 105.9 106.7 108.0 110.7 103.3 104.8 106.9 1 1 1 .6 1 2 1 .6 123.2 124.6 126.1 126.6 129.6 131.1 1 0 2 .8 1 1 0 .8 1 1 2 .6 Fuel, electric ity, and ice Housefurnish ings 100.7 94.8 96.3 104.3 103.3 101.3 100.5 107.3 104.3 104.4 104.5 104.3 104.9 105.0 106.3 106.2 106.2 106.2 106.2 1 0 0 .2 1 0 0 .2 99.9 99.0 99.7 1 0 2 .2 1 0 0 .8 1 0 0 .6 100.7 1 0 1 .0 1 0 1 .1 101.4 102.3 103.2 103.7 104.0 104.0 104.1 1 0 0 .1 100.4 1 0 1 .6 102.4 103.2 105.3 107.4 108.9 Miscel laneous 98.1 98.7 1 0 1 .0 101.5 100.7 1 0 1 .1 104.0 101.9 101.9 101.9 1 0 2 .2 114.4 115.6 116.8 102.5 103.3 103.7 104.0 105.0 106.9 107.4 107.7 118.2 119.7 108.5 109.4 1 2 1 .2 121 .9 1 2 2 .2 1 1 0 .1 1 1 0 .6 1 1 2 .0 122.3 1 2 2 .8 123.0 123.6 123.6 123.7 110.9 110.9 1 1 1 .1 1 1 1 .1 111.4 111.7 1 1 2 .6 104 Monthly Labor Review—January 1943 IN D E X E S OF COST OF CONTROLLED AND U N CO N TRO LLED GOODS AND SERVICES 1 October 1942 almost the whole field of consumer buying was covered by some form of governmental price control. The exceptions chiefly fresh fruits and vegetables—form about 10 percent of the family food bill. Price controls at the retail level were extended gradually. The extent to which the rise in the cost of living was retarded by these gradually extending controls and the rate of advance in prices left free of control are indicated by a series of special indexes compiled by the Bureau of Labor Statistics from its comprehensive cost-ofliving index. These special indexes are described in this article Although price control at the wholesale level had been in effect lor some time, in general, prices were not controlled at retail until May 18, 1942, by the General Maximum Price Regulation. This order brought under control at retail the prices of many foods, all clothing and housefurnishings, and a large number of other articles in daily use. It left unregulated prices of about 40 percent of the family food bill and all personal and professional services. Services rendered in connection with a commodity were controlled as of July 1. With the emergency price brake only partly locked, prices continued to advance after May 18, although at a retarded rate. The cost of the share of the city family’s budget which was regulated by OPA on September 15 was 0.1 percent lower on that date than on May 15, but the cost of goods and services unregulated as of September 15’was 5.1 percent higher. The group of foods not under OPA control on September 15 was almost 10 percent higher in price. In view of these continued advances, which threatened the ulti mate success of the price-stabilization program, President Roosevelt m his Labor Day address to Congress requested authority to control all farm products and foods whose regulation was prevented by restrictions in the original Price Control Act.2 Within a month legislation was enacted,3 and the Office of Economic Stabilization was created by its authority. On October 5 the Office of Price Admin istration brought under control numerous additional farm products and foods, making a total coverage of 90 percent of the family food bill. Other controls, including those over rent, were also extended. Development of Price Control General price stabilization is a wartime measure, but control of some prices was already a part of the Government’s functions before the war. Railroad fares and postal rates have long been controlled by the Federal Government. Rates charged for gas and electricity have been regulated by local public utilities commissions. Streetcar and bus fares, auto licenses and taxes, water rent, and in some local ities insurance rates, have been controlled by State and municipal governments. Even among foodstuffs, there have been peacetime controls of prices, although these have for the most part been indirect. Milk <Prepared in the Bureau’s Cost of Living Division by Frances R Rice * The Emergency Price Control Act of 1942 (Public No. 421, 77th Cong.', 2d Sess ) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pre™nttae ** Cost of Living 105 control boards in many States have regulated the price paid by the distributor to the dairy farmer; and taxes on such foods as oleomar garine have acted as regulators of both price and consumption. Before the General Maximum Price Regulation became effective on May 18, 1942, the Office of Price Administration had already established controls on a number of durable goods, important in the expenditures of moderate-income families on housefurnishings, includ ing refrigerators, vacuum cleaners, washing machines, stoves, and radios. These articles constituted about one-fourth of the house furnishings expenditures of families^of wage earners and lower-salaried workers, and because they are largely made of critical materials they were rapidly disappearing from retail markets during the spring and summer months of 1942. In addition, there were already controls on the prices of tires and tubes and of gasoline. On May 18, prices of all clothing, all other housefurnishings, fuels in domestic use, about 60 percent of the foods commonly purchased, and about 80 percent of other commodities were placed under OPA controls. Thus, prices of nearly two-thirds of the entire family budget were regulated at that time. More controls were instituted later. Services rendered in connec tion with a commodity came under OPA control in July. In October, many additional foods were placed under ceilings. Rents in urban areas were placed under Federal control gradually, until by December 1942 almost all important urban areas were within the sphere of Federal rent control. As of December 1942, only about 10 percent of family food pur chases, particularly fresh fruits and vegetables, and all personal and professional services were not regulated. Together, these two groups in the budget comprise 12 percent of family expenditures. Movement of Costs Under Price Control Indexes of the cost of the controlled and uncontrolled commodities and services in the Bureau of Labor Statistics cost-of-living index, based on August 15, 1939, as 100, are shown in the table, grouped ac cording to the dates on which they were placed under control. Rents, and the goods and services which are controlled by Government agencies other than the Office of Price Administration, are excluded from these computations. These exclusions cover gas and electricity rates, railroad, trolley and bus fares, telephone, postage and water rates, insurance fees, and licenses and taxes.4 All other goods and services important in family spending are included. These indexes measure the behavior of prices under regulation as compared with those not under OPA control; however, they should not—without more detailed study—be interpreted as measures of the effectiveness of price control. As far as provisions of the Price Control Act would permit, commodities were selected for regulation by the OPA because of their importance in the average consumer’s budget, because their prices had been advancing sharply, or because it appeared likely that they would advance. Other commodities have remained uncontrolled as a result of their inherent stability or of the unusual administrative difficulty involved in their regulation. ' Under an order of November 13, 1942, the Price Administrator must be notified of proposed increases n rates by common carriers and other public utilities and m ay protest them to the regulatory bodies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 106 Conclusions concerning the effectiveness of price control, therefore, must be qualified by a consideration of the basic market character istics of the various commodities included in each index. Indexes of Cost of Commodities and Services in Cost-of-Living Index, Controlled by OP A and Uncontrolled 1 [August 15, 1939=100] Indexes of cost of item s controlled b y O P A on Oct 10, 1942 Date Controlled before May 18, 1942 1939: Aug. 15-. Sept. 15_. Dee. 15-1940: Mar. 15June 15-. Sept. 15Dee. 15-. 1941: Mar. 15— June 15-. Sept. 15Dee. 15.. 1942: Mar. 15„ Apr. 15-_ May 15.June 15-. July 15-Aug. 15.. Sept. 15. Oct. 15— 1 0 0 .0 100.4 1 0 0 .1 96.1 95.3 95.2 93.8 94.8 98.6 103.1 108.2 1 1 1 .6 1 1 2 .1 112.3 112.7 114.9 1 1 2 .2 111.9 111.7 First con First controll Total con trolled as of ed between trolled on M ay 18,1942 May 19, and Oct. 10 , 1942 Oct. 10, 1942 1 0 0 .0 1 0 2 .8 1 0 1 .6 100.0 100.0 101.5 102.2 101.3 107.9 103.8 106.5 103.6 101.7 101.3 1 0 1 .1 103.0 102.4 103.8 106.2 113.4 115.1 121.3 122.7 123.5 1 2 2 .8 123.2 123.4 123.9 124.1 107.2 101.2 119.0 120.7 123.2 124.7 127.0 129.2 132.7 135.3 138.6 141.4 147.7 Uncontrolled on Oct. 10 , 1942 100.0 99.4 100.0 103.9 105.3 101.4 103.2 106.8 107.3 106.1 113.6 118.0 116.6 118.1 122.4 123.6 124.4 123.1 126.4 102.2 102.8 102.8 102.9 108.4 114.4 116.4 121.5 123.1 124.2 124.3 125.2 126.0 126.9 128.3 iM uiuum g leuo, gas a m electricity insurance fees; and licenses and taxes. Controlled and Uncontrolled Commodities and Services 6 i The items included in the Bureau’s cost-of-living index which were placed under OPA price control before May 18 are as follows: Auto mobile tires and tubes, gasoline in rationed areas, electric refrigerators gas refrigerators, radios, and stoves. On May 18 all articles of clothmg, fuel, ice, and all the housefurnishings and miscellaneous commodi ties not already covered, except newspapers and used automobiles, were placed under price control and the foods listed below were controlled. On July 1, dry cleaning, shoe repairs, auto repairs, and laundry services came under Office of Price Administration control. All other services are uncontrolled. Foods which were <designated as controlled and uncontrolled at each of the several perijOds covered, as well as the dates at which rents m each of the large cities included in the cost-of-living indexes have been shifted from the uncontrolled to the controlled group, are shown m the accompanying statements. 5 As of December 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 107 Cost of Living Foods included in cost-of-living index, controlled and uncontrolled, May lS-September 15, 19^2 Controlled Uncontrolled Cereals and bakery products. Cereals and bakery products: Corn meal.1 Corn flakes. Flour, white.1 Macaroni. Bread, white, Bread, whole wheat. Bread, rye. Vanilla cookies. Soda crackers. Meats, fish, and poultry: Meats, fish, and poultry: Lamb, leg.2 Beef, round steak. Lamb, rib chops.2 Beef, rib roast. Poultry (roasting chickens!.1 Beef, chuck roast. Fish, fresh. Veal cutlets. Pork chops. Bacon, sliced. Ham, whole. Pork, salt. Salmon, pink, canned. Lamb, leg Lamb, rib chops. Dairy products and eggs: Dairy products and eggs: Butter.1 Milk, fresh, delivered and grocery. Cheese.1 Milk, evaporated.1 Eggs.1 Fruits and vegetables: Fruits and vegetables: Apples. Bananas. Oranges. Canned peaches. Beans, green. Canned pineapple. Cabbage. Canned corn. Carrots. Canned peas. Lettuce. Canned tomatoes. Onions. Potatoes. Spinach. Sweetpotatoes Dried prunes. Dried navy beans. Other foods: Other foods: None. Coffee. Tea. Lard. Other shortening. Salad dressing. Oleomargarine. Peanut butter.® Sugar. 1 R e g u la te d b y O P A a s o f O c to b e r 5. U n c o n tr o lle d t o A u g u s t 1,194 2 ; co n tr o lle d th erea fte r. 3 C o n tr o lle d to J u ly 29,1942; u n c o n tr o lle d th erea fte r. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108 Monthly Lahor Review—January 1943 Month of 194% in which rents in each of the large cities included in Bureau’s cost-of living index were placed under Federal control Atlanta___ Baltimore __ Birmingham Boston_____ Buffalo____ Chicago.-___ Cincinnati. _ Cleveland__ Denver____ Detroit____ Houston___ Indianapolis. Jacksonville _ Kansas City. Los Angeles. Manchester. Memphis___ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis __ August, -- July. June. . . November. -- July. -- July. November. June. August. . . June. -- November. July. __ July. __ September. November. -- November. - - October. Milwaukee_________ August. Minneapolis-------------November. Mobile_____________ June. New Orleans_____ _ September. New York--------------- Not controlled. Norfolk____ ________ June. Philadelphia________ July. Pittsburgh__________ July. Portland, Maine____ August. >■ Portland, Oregon___ July. Richmond___________ December. St. Louis___________ July. San Francisco______ July. Savannah__________ July. Scranton____________ December. Seattle_____________ June. Washington,D. C___ January. SAVE G A S-T /A E Sf **+ *•¥ *+ ♦ + + ******•**** Wage and Hour Statistics EARNINGS IN MANUFACTURE OF MECHANICAL POWER-TRANSMISSION EQUIPMENT, 19421 Summary THIS report on earnings in plants manufacturing mechanical powertransmission equipment is the twelfth in the series undertaken by the Bureau of Labor Statistics for the purpose of providing information on the effects of the war on the several branches of the machinery industry.2 During the spring of 1942, 32 of the 45 plants included in this survey were either producing war materials or operating under high priority ratings; over two-fiftlis of all the plants studied were usingmore than 90 percent of their facilities in the war effort. Little technological conversion was necessary. Nearly half the plants studied were operating 3 shifts, and virtually four-fifths were working at least 2 shifts. The number of persons employed in these plants during the spring of 1942 was about two and one-half times the figure for August 1939, and average hourly earnings increased 17 cents—from. 73.1 cents to 90.1 cents per hour—during the same period. The lengthening of the average workweek by over 10 hours resulted in some inflation of average hourly earnings, however, because of extra payments for over time; the actual increase in hourly rates is estimated at about 10 cents. More than a fourth of the m.ale workers studied were in the 19 occupations with average hourly earnings in excess of $1.00 per hour; of the total male skilled workers, three-fourths were in these occupa tions. Aside from apprentices, helpers, and learners, the only occu pational groups with average earnings below 60 cents per hour were class C chippers and class C engine-lathe operators; these occupations include less than 1 percent of the male employees studied. Substantial variations in average hourly earnings were found between plants in different geographic regions; plants in small and large communities showed little variation in earnings levels. Woman workers averaged 56.7 cents per hour. Scope and Method of Study In order to provide basic information on the effects of the transition to a war economy on technological processes, occupational patterns, and wage structures, the Bureau of Labor Statistics has undertaken 1 Prepared in the Division of Wage Analysis by Oscar F. Brown. The study was directed and the preparation of the report supervised by Harold R. Hosea. . 2 P r e v io u s a rticles in t h is series h a v e a p p e a red in e a c h is s u e of th e M o n t h ly L a b o r R e v ie w , M a y - D e c e m b er 1942; re p o r ts of in d iv id u a l in d u str ie s are a v a ila b le o n r e q u e st. 501 1 5 2- 43- -8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 109 HO Monthly Labor Review—January 1943 a series of studies in establishments manufacturing various types of machinery and similar products. Each of the industrial branches covered in this series is defined in terms of the principal products of the various plants during the year 1939 as reported by the Census of Manufactures. Important changes in type of product are to be expected, especially because the war emergency has accentuated the shifts in production that would ordinarily occur over a 3-year period. The data on these changes are in themselves significant, however, and it is thus useful to begin with the 1939 classihcation as a starting point in order to determine their nature. Reports of the latest Census of Manufactures (1939) show that there were, in the United States, 218 establishments “ primarily engaged in the manufacture of mechanical power-transmission equip ment such as ball and roller bearings, gears made for sale separately, drives, shafts, etc.” Of this total, 34 establishments reported an average of fewer than 6 wage earners, and were excluded from the scope of this study. The remaining 184 plants employed an average of 30,174 workers during 1939, and over a third were working in the 45 establishments included in this survey. The manufacture of mechanical power-transmission equipment is characterized by a high degree of concentration, both geographically and by plant size. During 1939, slightly over two-thirds (66.1 per cent) of the wage earners and nearly two-fifths (39.9 percent) of the plants were in the 4 States of Connecticut, Pennsylvania, Ohio, and Indiana. Slightly less than a half (45.9 percent) of the plants and somewhat more than half the workers (53.7 percent) were found in the Middle Atlantic and New England States; of the workers in this northeastern region, one-half (50.0 percent) were found in Connecti cut. Most of the remainder of the industry is in the East North Central region, with Ohio the leading State. This area included about two-fifths (42.7 percent) of the industry’s plants and about the same proportion (41.4 percent) of the wage earners. The data for the present survey were collected by trained field representatives of the Bureau who visited the plants and analyzed pay rolls and other pertinent records. The detailed wage data on indi vidual employees are limited to day-shift workers in certain occupa tional groups selected for their numerical importance or because they are key jobs. In general, however, earnings by occupation were compiled for 80 to 90 percent of the wage earners on day shifts. The current earnings data shown in this report are based, in most instances, on a representative pay-roll period during March, April, or May 1942. Characteristics of the Industry Type of product.—The production of ball and roller bearings and parts accounts for the major part of the output of this industry; in 1939, these items of equipment constituted nearly two-thirds (64.2 percent) by value of the entire output of the industry. The pro duction of chain drives and gears was also important; other items were speed reducers, variable-speed drives, and parts and attachments. The plants studied are characterized by a high degree of specialization in manufacturing individual types of equipment used throughout the machinery trades. Of the total production of mechanical power https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics 111 transmission equipment, nearly seven-eighths (86.6 percent) was produced by specialized companies leaving about one-eighth (13.4 percent) as the output of plants primarily engaged in other types of manufacturing. On the other hand, of the total output of plants producing mechanical power-transmission equipment mainly, about 5 percent consisted of products not classified in the industry. Production oj war materials.—Conversion of facilities to war pro duction appears not to have been a major factor in this industry. Any shift on a wide scale would, indeed, hardly be expected, since the industry’s peacetime products are used in great volume by plants producing war materials directly. Thus, the impact of the war on the mechanical power-transmission equipment industry has resulted chiefly in a great expansion without drastic changes in types of product. In 1940 direct production of munitions and other defense materials was not a factor of much importance in this industry. By the end of that year only 2 of the 45 plants surveyed were producing materials directly connected with the defense program. This figure did not increase in 1941, but in that year 29 plants were given high priority ratings, as compared with 19 plants in 1940. In 1942, 1 of the 3 plants engaged in the production of direct war materials was using all of its facilities for war purposes; at the same time, 29 other estab lishments were operating under high priority ratings, owing to the importance of their regular products. In the case of 21 of these 32 plants, over 90 percent of output in the spring of 1942 consisted of either direct war materials or products made under high priority ratings. Only 13 plants reported no production directly connected with the war. The labor force.—Detailed earnings data were compiled for about 70 percent of all the workers employed in the plants surveyed; this group amounts to between 80 and 90 percent of those on day shifts. Slightly over a third (36 percent) of the males for whom wage and occupational data were collected were working at skilled jobs, 40 percent were doing semiskilled work, and the remaining 24 percent were unskilled. At the time the present survey was made, women constituted nearly a fifth (18.3 percent) of the factory workers. However, over 80 percent of all the female workers in the plants surveyed were found in 3 large establishments; in one very large plant about a third of the employees were women. About a third of the women in these 3 large establishments were working as class C inspectors in bearing departments. Other occupations in which female employees were found in substantial numbers were class B and C bench assemblers, learners, packers, and punch-press operators, class C. Nearly threefourths (74.1 percent) were doing unskilled work, and a fourth (25.2 percent) were classified as semiskilled ; in all the plants surveyed, only 13 woman workers out of a total of 1,884 studied were doing skilled work. Negroes were employed in 10 plants, but they constituted only 1.4 percent of all employees in the plants surveyed; nearly threefourths of the 381 Negroes found were working in 1 large midwestern plant. As in the case of many other industries, their principal oc cupations were those of laborers and janitors; one plant reported sub stantial numbers employed as heat treaters’ helpers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 132 Monthly Labor Review—January 1943 Eleven of the 45 plants included in this survey had agreements with nationally affiliated unions. Six of these agreements were with unions affiliated with the American Federation of Labor, and 5 with unions affiliated with the Congress of Industrial Organizations. In addition, there were independent labor unions in 4 plants, 3 of which were in large cities. The remaining 30 plants were unorganized. Union agreements were seldom found in small plants; of the 15 plants with fewer than 51 employees, only 2 were organized and all the establishments employing between 51 and 100 workers each were unorganized. In the 14 plants having over 250 workers each, the 8 that were unionized employed slightly more than half the workers in all plants in that size group. M e th o d o j w age p a y m e n t — Widespread use of incentive methods of wage payment was found in the plants manufacturing mechanical power-transmission equipment, since many of the products are highly standardized and produced by means of mass-production techniques. A third (15) of the plants surveyed made use of some incentive system, and somewhat over a fourth (28.2 percent) of the workers studied were paid on the basis of output. In the 25 plants employing fewer than 100 workers, all but 3 establishments paid on a straight hourly basis. Six of the 12 plants employing between 100 and 500 workers used some form of incentive system, as compared with 6 of the 8 establishments with over 500 workers; in plants of this size group, about a third (32.6 percent) of the workers were paid according to output. A third (15) of the plants paid no extra overtime rates beyond minimum statutory requirements, i. e., time and a half for all work above 40 hours a week. Twenty-five plants also applied this rate to work in excess of 8 hours in 1 day. Nine plants paid time and a half for all Saturday work and 1 applied this rate after noon on that day. Nine establishments paid on this same basis for Sunday work, and 6 for holiday operation. In but one instance was double time paid for Saturday work, and in this case it applied only to the afternoon. This higher rate was effective for Sunday work in 11 establishments and in 6 cases double compensation applied on holidays. The demand for the industry’s products by war establishments has resulted in a rather high degree of utilization of the facilities of these plants making mechanical power-transmission machinery. Thus, nearly half (19) of the plants surveyed were operating 3 shifts, and practically four-fifths were working at least 2 shifts (table 1). In the group of 16 plants reported as operating 2 shifts, 8 paid no shift differ ential and 6 paid premiums of 5 to 10 cents per hour; 1 paid secondshift workers 4 cents per hour extra plus a paid 30-minute lunch period. Of the 19 plants operating 3 shifts, 6 paid no premium to workers on either late shift. Nine establishments paid the same bonuses to workers on both late shifts; the premiums in these plants ranged from about 4 cents per hour to 10 percent of base rates. Four plants paid additional differentials for the third shift, workers on the “graveyard” shift receiving 4 or 5 cents an hour, or 5 percent of the base rate, more than those on the second shift. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 113 Wage and Hour Statistics T able 1.— Wage Differentials for Second and Third Shifts in 45 Mechanical PowerTransmission-Equipment Plants, M arch-M ay 1942 ¡Number of shifts worked Number of plants Plants with 1 shift only___ Plants with 2 shifts __ Differential paid for— Second shift Third shift 10 8 No differential______ _________ 5 cents per hour_________ ____ 8 cents per hour_______________ 4 cents per hour plus paid lunch period. 1 10 percent over base ra te .......... . 1 hour’s pay extra_______ ____ 1 6 No differential______ ________ 5 5 percent over base rate.. ______ 2 10 percent over base rate...... ......... 2 5 cents per hour_______________ 2 S percent over base rate_________ 1 5 cents per hour_______________ 1 4 cents per hour__________ ____ 4 1 1 Plants with 3 shifts No differential. 5 percent over base rate. 10 percent over base rate. 5 cents per hour. 10 percent over base rate. 10 cents per hour. S cents per hour. Employment, Hours , and Earnings TREND FROM 1939 TO 1942 Comparable data on employment for selected periods, 1939-42, are available for 39 of the 45 plants included in the survey. Employment in these establishments as a group in the spring of 1942 was about two and one-half times the figure for August 1939; the increase was from 6,461 workers to 15,704 (table 2). Average hourly earnings, which in August 1939 amounted to 73.1 cents (including extra pay ments for overtime and night work), had increased to 90.1 cents by March-May 1942, a gain of 17 cents. T able 2.—Employment, Average Hourly Earnings and Weekly Hours of Workers in 39 Mechanical Power-Transmission-Equipment Plants, Specified Periods, 1939—42 P e rio d A u g u s t 1939_______________________________________________ A p r il 1940--------------- ----------------------------------------------------A u g u s t 1 9 4 0 .-- __________________________________________ F e b r u a r y 1941_______________ ______ ______________________ A u g u s t 1941________________________________________ ______ M a r c h -M a y 1942___________________________________ _____ T o ta l w age earners1 6,461 8,208 9 ,0 3 2 11, 366 13, 458 15, 704 A v era g e h o u r ly ea r n in g s $0.731 .748 .7 6 3 .813 .865 2. 901 E s t im a t e d a v era g e h o u r ly ea r n in g s e x c lu s iv e o f ex tra o v e r tim e ea r n in g s $0.713 .7 1 9 .7 1 9 .7 4 5 .7 8 5 2. 811 A v era g e w e e k ly hours 39 .4 41 .7 4 4 .0 4 7 .2 4 8 .5 4 9 .6 1 D a t a for 2 c o m p a n ie s u s e d w it h r e d u c e d w e ig h t t o a v o id o v e r r e p r e se n ta tio n o f large p la n ts. _ 2 I n c lu sio n o f th e d a ta from th e 6 p la n ts for w h ic h co m p a r a b le in fo r m a tio n c o v e r in g th e earlier p erio d s is n o t a v a ila b le w o u ld raise a v er a g e e a r n in g s b y le ss t h a n 1 c e n t p e r h o ur. During the same period, the average workweek in these plants had lengthened 10.2 hours, a change which progressively inflated hourly rates as a result of increased premiums for overtime. The elimination of such extra payments is estimated to reduce average hourly earn ings for the latest period by 10 cents, or to about 81.1 cents. Exclu sive of the effect of extra overtime payments, hourly rates increased by an estimated 9.8 cents, or 14 percent, during the period. The plants for which comparable data covering the earlier periods were not available employed 6,883 workers; the addition of wage data for these https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Lahor Review—January 1943 114 plants increases average hourly earnings for the latest period by only 0.8 cent. PLANT AVERAGES Average hourly earnings, including extra payments for overtime and night work, amounted to 90.9 cents for the entire 45 plants studied. For more than a third (16) of the establishments, the figure was 90 cents or more, and average hourly earnings were over $1.00 in 10 plants; of the 21 plants surveyed in the Northeastern States, only 3 showed hourly averages of $1.00 or more, while nearly a third (7 out of 23) of those in the North Central and Western States were in this category. At the other extreme were 8 establishments which showed average earnings below 75 cents. The averages for about half (22) of the plants in this survey were between 75 and 90 cents per hour. O C C U P A T IO N A L D IF F E R E N C E S IN E A R N IN G S Average hourly earnings, exclusive of extra payments for overtime and night work, are available for 10,017 workers, who constituted the greater part of the day-shift workers in the plants surveyed. Occupa tional averages (excluding apprentices, helpers, and learners) in the industry ranged^ from less than 57 cents per hour for class C chippers and class C engine-lathe operators to $1.246 for class A working fore men (table 3). The general hourly average for all workers in the occupations studied in detail was 80.3 cents; this figure is 0.8 cents below the esti mated average hourly earnings of 81.1 cents for the industry shown in table 2. The difference is due, at least in part, to the inclusion of shift differentials in the industry average. Average hourly earnings for male workers amounted to 84.8 cents, or nearly 5 cents more than the combined average for both sexes. The women whose earnings were studied in detail averaged 56.7 cents per hour. T abA e 3 .—Average Hourly Earnings 1 of Day-Shift Workers in Selected Occupations in Mechanical 1 ower-Transmission-Equipment Plants, by Region, M arch-M ay 1942 United States New England and Middle Atlantic States North Central and Western States Number of workers Average hourly earnings Number Average of hourly workers earnings Occupation and class Number Average of hourly workers earnings All workers,........ ............................ 11,901 $0.803 6,082 $0. 731 5,819 $0. 879 Male workers........................ Apprentices, first year_____ ” Apprentices, second year_____ Apprentices, third year............. Assemblers, bench, class A___ Assemblers, bench, class B ___ Assemblers, bench, class C___ Assemblers, floor, class A _____ Assemblers, floor, dass B _____ Assemblers, floor, class C _____ Balancing-machine operators.. Blacksmiths___ ____________ Boring-mill operators, class A Boring-mill operators, class B__. Broaching-machine operators__ Buffers......................................... Bulldozer operators................... Burrers, class B ........................ 10,017 56 41 26 .848 .553 .692 .736 .898 .744 .761 1.025 .807 .754 .830 .853 1.033 .775 .779 .828 .781 .820 4,911 39 .782 .472 .636 .723 .986 .822 .814 1.056 .885 .797 (2) (2) 5,106 17 .911 .739 .752 .743 .831 .709 .645 .935 .740 .552 (2) (2) .973 .846 .782 • 77Q (2) C2) S e e fo o t n o t e s at e n d of table, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 86 173 66 102 102 62 6 6 78 28 39 78 8 23 21 9 37 53 45 76 47 51 2 3 34 14 5 27 5 19 1 .1 1 0 .704 .758 .937 (2) .815 | 20 17 49 120 21 26 55 11 4 3 44 14 34 51 3 4 115 Wage and Hour Statistics T able 3.—Average Hourly Earnings 1 of Day-Shift Workers in Selected Occupations in Mechanical Power-Transmission-Equipment Plants, by Region, M arch-M ay 1942— Con. United States New England and Middle Atlantic States North Central and Western States Number Average hourly of workers earnings Number Average of hourly workers earnings Number Average of hourly workers earnings Occupation and class Male workers—Continued. Burrers, class C ._ ............. ................... Carpenters, class A ............................... Carpenters, class B ............................. . Carpenters, class C .......................... Casting cleaners.................................... Chippers, class B _________________ Chippers, class C _________________ Coremakers, class A__.......................... Coremakers, class B ----------- ------ ----Coremakers’ helpers______________ Crane operators..............- ................... Craters------------------------------------- Cupola tenders________ __________ Cupola tenders’ helpers............. ......... Die setters_______________________ Drill-press operators, class A________ Drill-press operators, class B ............. Drill-press operators, class C________ Electricians______________________ Firemen, stationary boiler_____ ____ Foremen, working, class A_________ Foremen, working, class B _________ Foremen, working, class C_________ Gear cutters.......................................... Gear finishers_______ :-----------------Grinding-machine operators, class A .. Grinding-machine operators, class B__ Heat treaters, class A .----- -------------Heat treaters, class B ........................ . Helpers, journeymen’s------------------Helpers, machine operators’________ Inspectors, class A----------------------Inspectors, class B _______________ Inspectors, class C_________: ---------Janitors_________________________ Job setters_______ : ----------------------Laborers________________________ Laborers, foundry________________ Lathe operators, engine, class A ..___ Lathe operators, engine, class B _____ Lathe operators, engine, class C-------Lathe operators, turret, class A_____ Lathe operators, turret, class B _____ Lathe operators, turret, class O_____ Lay-out men, class A ______________ Learners, journeymen and others . . . . . Learners, machine operators-----------Machine operators, all-round_______ Machinists, class A ______________ _ Metal-saw operators---------------------Milling-machine operators, class A__ Milling-machine operators, class B — Millwrights, class A ---------------------Molders, bench______________ ____ Molders, floor____________________ Molders’ helpers__________________ Molders, machine, class A ................... Molders, machine, class B _________ Packers......................... ........ ................ Painters, brush........................ ........... Painters, spray........................... .......... Patternmakers, wood..... ............. ........ Pipefitters----------------- ------------ ----Planer operators, class A----- ---------Planer operators, class B............ .......... Platers___________________ ______ Punch-press operators, class A......... . Punch-press operators, class B --------Punch-press operators, class O . .. ....... Repairmen, machine............................. Sandblasters................... ....................... Screw-machine operators, class A........ Screw-machine operators, class B ____ Screw-machine operators, class O........ S e e f o o t n o t e s a t e n d o f ta b le . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 9 13 30 28 10 29 14 6 6 29 20 7 18 11 55 142 57 48 38 66 54 29 154 13 742 595 81 91 214 305 175 240 388 188 262 299 55 199 168 35 265 190 25 11 201 290 42 112 20 68 81 71 22 43 21 39 36 104 14 14 15 28 14 9 18j 23 81 25 161 6 220 132 112 $0. 608 1.069 .780 .691 .657 .699 .568 .847 .773 .477 .852 .721 .826 .658 .988 .968 .879 .618 .870 .724 1. 246 .994 .822 .866 .952 1.135 .970 .905 .744 .695 .621 .905 .754 .680 .670 1.099 .625 .668 1.080 .801 .566 1.088 .904 .743 .996 .590 .575 .861 1.057 .726 1.082 .835 .977 .807 .892 .600 .843 .714 .696 .920 .741 1.190 .987 .974 .996 .795 1.242 1.002 .917 .977 .766 1.133 1.025 .806 21 2 5 9 10 7 14 4 4 12 $0.610 (2) .860 .681 .492 (2) (2) (2) (2) 1 4 10 39 56 23 14 14 38 20 6 84 9 318 277 21 32 155 231 44 80 271 74 144 160 (2) (2) .958 .973 .976 .678 .868 .668 1.213 .930 .718 .953 .981 .869 .798 .899 .712 .680 .585 .920 .707 .679 .616 1.043 .616 77 40 20 112 83 23 4 151 220 16 58 7 35 20 18 7 1.015 .763 .624 1.074 .909 .749 (2) .585 .567 .846 1.052 .633 1. 044 .942 .871 (2) 7 11 13 45 3 2 9 (2) (2) (2) .687 (2) (2) 1. 262 .867 (2) .996 .744 6 4 9 9 46 11 78 2 60 32 104 .974 .790 .928 (2) 1.029 .948 .811 23 7 8 21 18 3 15 10 6 2 17 20 6 14 1 16 86 34 34 24 28 34 23 70 4 424 318 60 59 59 74 131 160 117 114 118 139 55 122 128 15 153 107 2 7 50 70 26 54 13 33 61 53 15 43 14 28 23 59 11 12 22 10 $0.606 .990 .730 .696 .748 (2) .529 .860 _77 a (2) .803 721 .848 .651 (2) .958 .816 .576 .871 .756 1.292 1.063 .849 .763 (2) 1.334 1.119 .908 .761 .734 .731 .900 .777 .684 .705 1.168 .635 . 668 1.121 .813 (2) 1.098 .900 (2) .833 .608 .602 .871 1.063 .775 1.131 .800 1.014 .803 .892 .656 .879 .748 .703 .934 .702 1.082 1.020 .892 9 23 35 14 83 4 160 100 8 .850 1. 242 1.039 1.020 1.024 (2) 1.171 1.050 .734 6 Monthly Labor Review—January 1943 116 T able 3.—Average Hourly Earnings 1 of Day-Shift Workers in Selected Occupations in Mechanical Power-Transmission-Equipment Plants, by Region, M arch-M ay 1942— Con. United States Occupation and class Male workers—Continued. Shake-out men__________ ______ _ Shaper operators_________ ______ _ Sheet-metal workers, class A_______ Sheet-metal workers, class B.__ ____ Stock clerks______ ______ _______ Testers, class A__________________ Testers, class B ___ ______________ Testers, class C___________________ Thread-milling-machine operators___ Time clerks___ __________________ Tool and die makers______________ Tool-grinder operators_____________ Truck drivers____________________ Truckers, hand_________ _____ ___ Truckers, power, inside__ ________ Tumbler operators________________ Upsetters______ _________________ Watchmen______________________ Welders, hand, class A____________ Welders, hand, class B _________ . .. Woodworkers............... ........... ... _ Female workers______________________ Assemblers, bench, class A_________ Assemblers, bench, class B ........ .......... Assemblers, bench, class C.................. Drill-press operators, class B .......... . Drill-press operators^ class C________ Inspectors, class C______ __________ Janitresses_________________ _____ Learners, machine operators________ Learners, others__________ _______ Packers_________________________ Punch-press operators, class C ______ Testers, class C______ ____________ Time clerks_______ _______ _____ Number of workers Average hourly earnings 24 $0. 692 .867 .937 .808 .658 .901 .779 .654 .795 .603 12 23* 12 406 13 17 10 15 155 160 134 25 232 33 16 27 209 13 9 12 1,884 13 91 215 6 12 1,083 12 62 155 102 63 12 58 1 .1 1 0 1.015 .704 .628 .745 .680 1.047 .657 1.041 .790 .737 .567 .708 .570 .640 .759 .624 .578 .569 .467 .429 .592 .583 .548 .462 New England and Middle Atlantic States North Central and Western States Number Average hourly of workers earnings Number Average of hourly workers earnings 3 0 6 2 $0,928 9 244 (2) .618 .926 .785 (2) .702 .601 1.079 .867 .634 .584 .673 .595 8 13 8 5 144 94 53 12 135 13 9 5 102 3 1 1,171 2 89 172 6 0 21 6 21 3 162 5 4 2 10 11 66 81 13 97 $0. 640 .801 .940 (2) .719 .860 (2) (2) .842 .638 1.153 1 .1 1 2 .768 .691 .792 .798 1.015 .744 1.047 .783 .737 20 7 22 0 .566 (2) (2) 107 .520 (2) .565 .610 .759 713 10 8 12 11 2 43 .646 0 0 .514 526 2 62 155 28 60 11 58 0 .467 .429 .490 .579 (2) .462 557 10 74 3 1 .761 .624 .638 12 0 .631 0 0 1 A v e r a g e s are b a se d o n a c tu a l ea r n in g s e x c lu siv e o f e x tr a p a y m e n t s for o v e r tim e . 2 N u m b e r o f p la n ts a n d /o r w o rk ers to o sm a ll t o j u s t if y c o m p u ta tio n of a n a v er a g e. Nineteen occupational groupsTsliowedJaverages^}f£$1.00 orjmore per hour; these groups included slightly more than a fourth (27.0 per cent) of all male employees and|three-fourths (75.2 percent) of the skilled male workers for whom detailed occupational data were com piled. By far the largest of the groups earning an average of $1.00 or more per hour were the 742 class A grinding-machine operators who also constituted the largest single occupational class of male workers in the industry. Approximately a third of the male employees were in occupations paying less than WO cents per hour and, of these, about half were in jobs paying less than 65 cents. Except for appren tices, helpers, and learners, less than 1 percent of the male employees were in jobs paying less than 60 cents per hour. A fairly accurate basis for estimating regional differences is pro vided by the combined weighted averages shown in table 3. The hourly average (excluding extra payments for overtime) paid to the 6,082 employees studied in detail in the 22 plants in the Northeastern States was 73.1 cents. The corresponding average for 5,819 workers in 23 plants in the North Central and Western States was 87.9 cents or over a fifth above that paid in the Northeastern region. If male https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics 117 workers alone are considered, the average for the North Central and Western region is over a sixth above the corresponding figure for the Northeastern region. There are 75 occupational classifications in which the average hourly rates paid in the two geographical sections may be compared. Those in the North Central and Western States combined were greater in 54 instances; in 29 cases they exceeded by 10 cents or more the averages paid in the Northeast. The averages in the North Central and Western States were higher by 20 cents or more in 7 occupations, while in only 1 occupational group was the northeastern rate higher by a similar amount. It may be noted that the general average for the North Central and Western States is affected consid erably by the earnings of the 742 class A and B grinding-machine operators; their averages exceeded by 46.5 cents and 32.1 cents, re spectively, those paid for similar work to the 595 employees in the Northeast. These substantial differences were apparently due in some measure to the high hourly rates paid in the East North Central metalworking centers, as compared with the much lower rates effective in New England, even in some of the larger plants. The frequency with which these two classes of grinding-machine operators occur is explained by the fact that the most important single product of the industry (i. e., bearings) involves substantial amounts of precision grinding. The occupational averages tended also to vary significantly in relation to the average number of workers employed per plant. In comparing average rates in both large and small plants, it is desirable, obviously, to eliminate any regional wage differences wherever pos sible. The data shown in table 4 are limited, therefore, to the 23 plants studied in the North Central and Western States. For many classifications the numbers of workers are insufficient to permit reliable comparison of average hourly rates between plants of different size groups. There are 40 occupational groups, however, in which the numbers of male employees are believed to be adequate for this pur pose. The average hourly earnings of the 3,186 employees in estab lishments with 500 or more workers amounted to 99.6 cents, over a fourth higher (22.4 cents) than the corresponding figure of 77.2 cents for the 1,920 workers in the smaller plants (table 4). Average hourly rates were also higher in the larger plants for all of the 40 occupations for which comparisons are possible. In over half (23) of the occupational classifications, the difference was more than 10 cents per hour; for 8 groups the averages were higher by 20 cents or more. The greatest differences found were between the two numerically most important groups—class A and class B grindingmachine operators—whose averages were higher in the large plants by 34 cents and 32 cents per hour, respectively; the extent of the wage variations in these two classifications is largely due to the inclusion, in the “large plant” group, of one very large establishment which used incentive methods of wage payment. Because of the varied character of the industry, there appears to be no general trend in the wage differences between plants in large and small communities. Although there is a difference of about 1.5 cents per hour between average earnings in organized and unorganized plants, the higher rates in the union plants were apparently due in part to their larger average size and to their geographical location; 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 118 Monthly Labor Review—January 1943 of the 11 unionized plants were in the North Central and Western States where wage rates tended, on the average, to be higher. T able 4.—Average Hourly Earnings 1 of Day-Shift Male Workers in 23 Plants, ISorth Central and Western States, by Occupation and Size of Plant, M arch-M ay 1942 Average hourly earn ings in plants employing— Occupation and class Occupation and class 500 workers or less Over 500 workers Number of workers, 2___________ 1,920 Average hourly earnings 2________ $0.772 3,186 $0.996 Assemblers, bench, class A ............. Assemblers, bench, class C ............. Boring-mill operators, class A_....... Broaching-machine operators_____ Electricians, class A ......... ............... Firemen, stationary boiler............ . Foremen, working, class A ........... Foremen, working, class B _______ Grinding-machine operators, class .753 .625 .927 .733 .824 .719 1.276 .953 .993 .710 1.065 .854 .887 .800 1.344 1.088 1.054 1.396 .840 .879 .723 .706 .607 1.163 .913 .771 .753 .749 .910 .782 .717 G r in d in g -m a c h in e o p era to rs, cla ss B______________________ ____ _ H e a t trea te rs, cla ss A _______________ H e a t treate rs, cla ss B ___ ________ H e lp e r s , j o u r n e y m e n ’s a n d o t h e r s . . H e lp e r s , m a c h in e o p era to rs’________ In s p e c to r s, cla ss A ____ ______________ In sp e c to r s, cla ss B ............................ I n s p e c to r s, cla ss O .____ ____________ Average hourly earn ings in plants employing— .8 6 8 .763 .603 500 Over work 500 ers or work ers less Janitors_____________ Job setters-___ _________ _____ Laborers __ ___ _ .. Lathe operators, engine, class A ___ Lathe operators, engine, class B ___ Lathe operators, turret, class A Lathe operators, turret, class B_ . Learners, journeymen and othersLearners, machine operators Machinists, class A_______ Metal-saw operators Milling-machine operators, class AMilling-machine operators, class B Millwrights.................. Packers_______________ Repairmen, m achine.. . . Screw-machine operators, class A ... Stock clerks________ Tool and die makers......... Tool-grinder operators___ Truck drivers___________ Truckers, hand-,- ___ W atchmen______ _ . $0.606 1.093 .527 1.046 .754 1.055 .809 .596 .586 .911 .744 1.003 .753 .950 .611 1.005 1.114 .646 1.048 .911 .683 .618 .586 $0. 733 1.180 .755 1.188 .900 1.154 1.005 .659 .689 1.097 .795 1.208 1 .0 0 0 1 .0 2 2 .740 1.028 1.175 .775 1.214 1 154 .841 .713 .817 j •[A v era g es are b a se d o n a c tu a l ea r n in g s, e x c lu s iv e o f ex tra p a y m e n t s for o v e r tim e . 2 I n c lu d e s w o r k e r s in o c c u p a tio n s n o t s h o w n s e p a r a te ly . A fifth of the workers in the industry are women; those for whom the data warrant the computation of averages received hourly earnings of 56.7 cents. Over half of all the women whose earnings were studied in detail were employed as class C inspectors; the 1,083 workers in that occupation received average hourly earnings of 57.8 cents. Apart from learners, the lowest rate for women, 46.2 cents per hour, was paid to time clerks. In the North Central and Western States rates paid to female employees were considerably higher than the corresponding averages in the Northeast; in every occupational group in which the numbers of plants and workers were sufficiently large to justify the computation of an average, the northeastern rates were lower. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 119 W iage and Hour Statistics WAGE RATES OF U N IO N STREET-RAILW AY EM PLOYEES, JU N E 1, 1942 1 Summary THE average hourly wage rate of uuion motormen, conductors, and bus operators in 62 cities was 84.8 cents‘on June 1 , 1942. This average covers operators employed on local lines and also those employed on city-suburban lines which furnish local service. Em ployees of strictly intercity lines are not included. The index of hourly rates advanced 7.4 percent during the period June 1 , 1941, to June 1 , 1942, to a new index of 122.9 (1929 = 100). Wage rates as indicated by union agreements for street railways have advanced steadily during recent years, the 1942 rate being 28 percent above the low point in 1934. T a b l e 1.— Indexes of Union Hourly Wage Rates of Street-Railway Motormen, Conductors, and Bus Drivers, 1929—42 Year 1929 1930--. _______ __________ 1931 1932 ____________________________ 1933 ______________________ 1934-1935 Year Index 1 0 0 .0 1 0 1 .0 1 0 1 .0 99.0 (0 96.1 99.8 1936 ___________________________ 1937_____________________________ 1938 ________________________ 1939 ____________________________ 1940 _________________________ 1941 ___________________________ 1942 ____________________________ Index 1 0 0 .6 105.3 108.3 109.2 110.4 114.1 122.9 i Not available. Scope and Method of Study This study is one of a series of annual surveys started in 1921. In 1942 the Bureau’s agents visited 75 cities and obtained reports of effective union scales for street-railway or bus operators in 62 of those cities. The rates reported were those in effect on June 1, 1942. Whenever possible the comparable rates in effect on June 1, 1941, were also reported. The 1942 survey included 430 quotations of rates, 366 of which included comparable data for 1942 and 1941. The union members covered by these contractual wage rates num bered 76,570 of whom 69,362 were included in the reports which gave comparable rates for 1941. The averages presented in this report are weighted according to the number of union members receiving each rate and thus reflect not only the actual rates provided in union agreements but also the number of members benefiting from those scales. The index numbers are based on aggregates computed from the rates quoted for identical unions and service classifications in both years. The weights in both of the aggregates used in each year-to-year comparison were the membership figures reported in the second year. Index numbers therefore eliminate the influence of changes in union membership. Caution.—Because of changes in coverage, the averages should not be compared from year to year to determine trend. For trend purposes the index numbers (table 1) should be used, since these were computed from comparable quotations only and the influence of changes in coverage has been eliminated. For comparison of the general wage level of street-railway and bus operations with those 1 Prepared in the Bureau’s Industrial Relations Division. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120 Monthly Labor Review—-January 1943 of other occupations at the time the survey was made, the average (table 2) should be used. Hourly Wage Rates Hourly wage rates in street-railway and bus operations are generally graduated on the basis of an employee’s length of service with the company. Most frequently the agreements provide for an entrance rate, an intermediate rate, and a maximum rate. A considerable number, however, specify several intermediate periods, each with successively higher rates. The specified time for the rate steps varies widely from city to city. The entrance-rate period is usually DISTRIBUTION OF WAGE RATES OF UNION STREET-RA ILW A Y EMPLOYEES PERCENT OF MEMBERSHIP https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JU N E I, 1 9 4 2 PERCENT OF MEMBERSHIP 121 Wage and Hour Statistics 3, 6, or 12 months. The maximum rate most frequently applies after either 1 or 2 years of service, but many agreements provide for longer periods, ranging up to 5 years and including as many as 12 progressive rate steps. The differences between the entrance rates and the maximum rates ranged from 1% to 34 cents per hour in 1942, the most frequently reported differences being either 5 or 10 cents. Rates for operators of 2-man cars were reported in only 18 of the 62 cities included in the survey. In each of these cities the agree ments provided higher rates for 1-man-car operators and bus drivers than for motormen and conductors on 2-man cars. Generally, the rates for bus drivers were the same as for 1-man-car operators. The differences in favor of 1-man-car operators ranged from 3 to 10 cents per hour, the most common difference being 10 cents. The entrance rates for 2-man-car operators ranged from 56 cents per hour in St. Louis to 90 cents per hour in Detroit, the majority being between 65 and 75 cents. The entrance rate for the subway motormen in New York City was 96 cents. For 1-man-car and bus operators the range of entrance rates was from 46 cents per hour in Tampa to $1 per hour in Detroit; almost half of the entrance rates were between 70 and 80 cents. Maximum rates for 2-man-car operators ranged from 65 cents in Omaha to $1 per hour in Detroit, with a majority of the rates ranging from 75 to 85 cents. Subway motormen in New York City had maxi mum rates of $1.06. For 1-man-car and bus operators the maximum rates ranged from 53 cents per hour in New Orleans to $1.10 per hour in Detroit. The majority of the maximum rates were between 80 and 90 cents. As streetcar and bus operators generally remain permanently in the employ of one company, a very great majority of the union mem bers reported were receiving the maximum rates provided in their respective agreements. Almost one-half of the union members were covered by union scales of between 80 and 90 cents, over one-sixth received rates between 90 cents and $1, while about one-fiftli had rates between 70 and 80 cents. (See table 2 and chart.) T able 2.-—Distribution of Union Street-Railway Employees by Hourly Rate Groups, June 1, 1942 Classified hourly rates Average rate per hour____ ______ ________ ___ ___ _ Percent of members whose rates were— 50 and under 60 cents _ ______ ________ ________ 60 and under 70 cents ____________ ____- .......... 70 and under 80 cents ____ ___________ _____ 80 and under 90 cents _ ______________ ___ 90 cents and under $1.00__ --- _ $1.00 and under $1 .1 0 _____________ - - . $1 . 1 0 -- ______________________________________ 1942 $0.848 0.5 3.7 2 2 .0 47.3 16.2 7.7 2 .6 About 82 percent of the quotations of union scales provided for increases during the year June 1, 1941, to June 1, 1942 (table 3). These raises benefited approximately 71 percent of the total member ship covered in the survey. Almost half of those receiving increases, had their 1941 rates advanced by less than 10 percent while slightly more than half received increases of 10 percent or higher. No de creases were reported during the period June 1, 1941, to June 1, 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122 Monthly Labor Review—January 1943 T able 3.—Number of Changes in Union Street-Railway Quotations, June 1, 1941, to June 1, 1942, and Percent of Members Affected Num Percent ber of of mem quota bers af tions fected Amount of rate change No change reported.. . _ ___ Increases reported________ . . . Under 2 percent. _________ 2 and under 4 percent. . . . . 4 and under 6 percent.. ___ 6 and under 8 percent_____ 8 and under 10 percent. ___ 10 and under 12 percent. . . . . 58 264 2 14 27 51 35 45 28.7 71.3 .4 4.5 9.0 10.7 10.3 15.0 Num Percent ber of of mem quota bers af tions fected Amount of rate change Increases reported—Continued. 12 and under 14 percent. ___ 14 and under 16 percent__ . 16 and under 18 percent 18 and under 20 percent.. . 20 and under 2 2 percent 22 percent and over 22 23 15 u 8 11 2.4 5.0 2 0 7.5 25 9 T able 4.— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities Rates of wages per hour City and classification Rates of wages per hour City and classification June 1, 1942 June 1, 1941 June 1, 1942 Chicago, 111. Atlanta, Ga. 2 -man cars and feeder busses. First 9 m onths__________ 10-18 m onths_________. . . . After 18 m onths_________ 1 -man cars, busses, and trolley coaches: First 9 m onths__________ 10-18 months. ..^ ________ After 18 m onths_________ 2 -man $0 . 680 .730 .760 $0.600 .650 .680 .750 .800 .830 .670 .720 .750 Binghamton, N . Y. Busses: First 3 months 4-12 m on th s... After 1 year__ .665 .715 .745 .610 .660 .690 Birmingham, Ala. cars: First y ear.......... Second year_____ After 2 years_____ 1 -man cars and busses: First y e a r......... . Second year_____ After 2 years_____ 2 -man .685 .705 .735 .600 .620 .650 .760 .780 .810 .675 .695 .725 cars: First 3 months 4-12 m onths... After 1 y ear... Night cars___ 1-man cars_______ Night cars___ Busses: Under 40 passengers: Day---------------N ig h t............ . Over 40 passengers: D ay.--------------Night_________ Elevated railway: Motormen: First 3 m onths.. 4-12 m onths___ After 1 year____ Conductors: First year_____ After 1 year____ Guards, regular____ Guards, extra: First 3 m onths__ 4-12 months___ After 1 year____ Boston, Mass. cars: First 3 m o n th s.... 4-12 months_____ After 1 year_____ 1-man cars and busses: First 3 months___ 4-12 months_____ After 1 year_____ Rapid transit lines: Motormen______ Guards: First 3 months. 4-12 m onths... After 1 y ear.. . .580 .670 .830 .580 .640 .780 .680 .770 .930 .680 .740 .880 .880 .830 .580 .670 .830 .580 .640 .780 Butte, Mont. Busses. .800 Charleston, S. C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $0.800 .830 .850 .870 .930 .950 $0.800 .830 .850 .870 .930 .950 . 900 .920 .900 .920 .930 .950 .930 .950 .807 .816 .861 .807 .816 .861 .798 .816 .798 .798 .816 .798 .770 .780 .789 .770 .780 .789 .640 .670 .690 .640 .670 .690 .710 .740 .760 .710 .740 .760 Cincinnati, Ohio 2 -man Busses: First 3 months. 4-12 m onths... After 1 y ear.. . June 1, 1941 .610 .630 .650 .585 .605 .625 2 -man cars: First 3 m o n th s.... 4-12 m onths_____ After 1 year_____ 1-man cars and busses: First 3 months___ 4-12 months_____ After 1 year_____ Cleveland, Ohio 2 -man cars: First 3 m onths__________ 4-12 months________ ____ After 1 year_____________ Busses: First 3 months__________ 4-12 months__________ ... After 1 year...................... . Columbus, Ohio 1-man cars and Class A busses: First 3 m onths................... 4-12 months.......................... After 1 year.......................... . 855 .885 .905 .925 .955 .975 .730 .760 .780 .720 .750 .770 .790 .820 .840 .660 .690 .710 123 Wage and Hour Statistics T able 4.— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities— Continued Rates of wages per hour City and classification June 1, 1942 June 1, 1941 $0 . 660 .690 .710 $0. 590 .620 .640 Columbus Ohio— C o n tin u e d C la s s B b u sses: B ir st 3 m o n t h s . . ..................... 4-1 2 m o n t h s ____________ . . . A fte r 1 y e a r . ................... .......... Davenport, Iowa Dayton, Ohio m a n cars a n d b usses: C o m p a n y A: F ir s t 3 m o n t h s ________ 4-12 m o n t h s ___________ A fte r 1 y e a r ___________ C om pany B: F ir s t 6 m o n t h s ________ 7-12 m o n t h s ....................... A fte r 1 y e a r ___________ .670 .690 .710 .650 .700 .750 .600 .650 .700 .710 .720 .730 .740 .750 .610 .620 .630 .640 .650 .760 .770 .780 .790 .800 .660 .670 .680 .690 .700 Des Moines, Iowa 1- m a n ears a n d b u sses: F ir st 3 m o n t h s _____________ 4-12 m o n t h s ................................ A fte r 1 y e a r .............................. .. 1.665 1.695 1.740 .635 .665 .710 .900 .940 .790 .830 .870 Detroit, Mich. m a n cars: F ir s t 6 m o n t h s _____ ________ 7-12 m o n t h s ___ ______ ______ A fte r 1 y e a r ________________ 1-m an ears a n d b usses: F ir s t 6 m o n t h s ........................... 7-12 m o n t h s _________ _____ _ A fte r 1 y e a r ................. ............... 2- 1.000 1.000 1.040 1.100 .840 .880 .920 Duluth, M inn. B u sse s: F ir s t y e a r __________________ S eco n d y e a r ............ ................... T h ir d y e a r .................................. . .690 .720 .750 .590 .610 .630 Erie, Pa. B u sses: F ir s t 6 m o n t h s .......................... . 7-12 m o n t h s ________________ A fte r 1 y e a r . ............................... .800 .870 .900 2.650 2.720 2. 750 .720 .640 Indianapolis, Ind. 1-m an cars a n d b u sses: F ir s t y e a r . ................................... S eco n d y e a r ................................. A fte r 2 y e a r s ................................ .670 .780 .690 .800 .850 .740 i Increase of 7 cents per hour, July 1 , 1942. 3 Plus a bonus of cent for each hour worked. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $0.630 .680 $0. 570 .620 Jacksonville, Fla. .650 .670 .700 1 -man ears and busses: First 6 m onths______ 7-12 m onths............... Second y e a r ............ . After 2 years................ .550 .580 .620 .700 Los Angeles, Calif. Los Angeles Railway Co.: 2 -man cars: First year_________ _ Second y ear._ ______ After 2 years_________ 1 -man cars and busses: First year___________ Second year_________ After 2 years________ Pacific Electric Co.: 2 -man cars: First 6 m onths___ _ 7-12 m onths__ __ After 1 year. ........... 1 -man cars and busses: First 6 months............... 7-12 m onths.. . . . . After 1 year____ _ Single-track cars: First 6 m onths____ .. 7-12 m onths____ After 1 year_________ Madison, IVis. Busses: First 6 m onths__________ 7-12 m onths_____________ 13-18 m onths____________ After 18 m onths_________ .660 .720 .750 .660 .720 .750 .760 .820 .850- .760 .820 .850 .730 .750 .770 .830 .850 .870 .780 .800 .820 .680 .710 .730 .750 .580 .610 .630 .650 .720 .780 .850 .730 .730 .690 .740 .790 .615 .665 .715 .700 .720 .740 .760 .670 .690 .710 .730 .750 .770 .790 .810 .720 .740 .760 .780 Manchester, IV. H. Busses: First year_______________ Second year_____________ After 2 years____________ Memphis, Tenn. 1 -man Grand Rapids, Mich. B u s s e s ..................................................... Jackson, Miss. Busses: First 6 m onths........ After 6 m onths____ June 1. 1941 Little Rock, Ark. .720 .740 .760 Denver, Colo. 2- m a n cars: F ir s t 3 m o n t h s _____ _______ 4-12 m o n t h s ............................... 13-18 m o n t h s ______________ 19-24 m o n t h s . . . . . .............. .. A fte r 2 y e a r s _______________ 1-m an cars a n d b u sses: F ir s t 3 m o n t h s _____________ 4-12 m o n t h s ________________ 13-18 m o n t h s _______________ 19-24 m o n t h s ............................. . A fter 2 y e a r s .............................. June 1, 1942 Busses: First year..................... Second year_________ After 2 years................. (S e e R o c k Isla n d (111.) d is tr ic t.) 1- Rates of wages per hour City and classification cars and busses: First year_______________ Second year____________ After 2 years____________ Milwaukee, Wis. 2 -man cars: First year________ ______ Second year_____________ Third year______________ After 3 years......................... 1 -man cars and busses: First year_______________ Second year........... ............ Third y ear...................... . After 3 years......................... 124 Monthly Labor Review—January 1943 T able 4.— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities— Continued Rates of wages per hour City and classification June 1, 1942 June 1, 1941 Minneapolis, M inn. (includes St. Paul, Minn.) 2 -man cars: First year---------------------Second year________ . . .. After 2 years_____ ___ l-inan cars and busses: First year__________ ____ Second y e a r... _________ After 2 years________ ____ $0.710 .740 .770 $0.640 .670 .700 .800 .830 .870 .730 .760 .800 .600 .650 .530 .580 Moline, III. (See Rock Island (111.) district.) Nashville, Tenn. Busses: First 3 m onths______ 4-12 m onths_____________ 13-18m onths____ ___ . _ 19-24 m onths____ _______ After 2 years______ - _- - .580 .620 .640 .670 .700 .540 .580 .600 .630 .660 .810 .830 .850 .660 .680 .700 .500 .550 .600 .630 .480 .510 .530 .560 .800 .830 .870 .720 .750 .790 .480 .490 .500 .510 .520 .530 .480 .490 .500 .510 .520 .530 .960 .792 .869 .957 Newark, N . J. 1 -man cars and busses: First 3 m onths______ ____ 4-12 m onths................. ........ After 1 y e a r ________ ... Ironbound Transportation Co.: Busses: First 6 months______ _ 7-18 m onths................. 19 months to 5 years__ After 5 years........ . .. . V New Haven, Conn. 1 -man cars and busses: First 3 m onths___ _______ 4-12 m onths_____________ After 1 year_____________ New Orleans, La. Busses (Algiers Division): First 6 months___________ 7-12 m onths____ ________ 13-18 m onths___________ 19-24 m onths......... .............. 25-30 months____________ After 30 m o n th s.......... ...... New York, N. Y. Subways: B. M. T. System: Road motormen: First year________ Second year______ After 2 years______ Conductors: Front position: First year_____ After 1 year. „ Rear position_____ 1 .0 0 0 1.060 .730 .780 .700 * Inc rease of 3 c e n ts p er h our, S e p t. 1, 1942. In c rea se o f 1 c e n t per h our, S e p t. 1, 1942. * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 1, 1942 June 1, 1941 New York, N . Y .—Continued Mobile, Ala. Busses: First 6 m onths________ After 6 m o n th s _____ ____ Rates of wages per hour City and classification Su bways—Continued. I. R. T . System: Road motormen: First year Second year After 2 years............ Conductors: Front position: First year After 1 year Rear position Platform: First year After 1 year Surface cars: Third Avenue Railway System: First 3 m onths_______ 4-6 m onths__________ 7-9 m onths____ _____ 10 - 1 2 m onths_____ . . . 13-15 m onths________ 16-18 months 19-21 months 22-24 months Third year Fourth year Fifth year...................... After 5 years________ Brooklyn-Queens Transit Lines: First year Second year Third year Fourth year . Fifth year______ _ _ After 5 years Queensboro Bridge Railway and Steinway Omnibus ___ ___ Busses: Avenue B and East Broadway Transit Co.: First 6 months...... ........ 7-12 months Second year Third year Fourth year.............. . After 4 years_________ Bee Line, Inc.: First year__ .. . Second year Third year Fourth year After 4 years Brooklyn Bus Division: First year Second year_________ Third year Fourth year____ Fifth year After 5 years_________ Comprehensive and East Side Companies: First 3 months 4-12 m onths_________ Second yearv. ......... ... . Third year Fourth year After 4 years___ .... $0.960 1 .0 0 0 1.060 $0.858 .960 .960 .730 .780 .700 .650 .680 .520 .540 .560 .590 .610 .630 .650 .670 .760 .770 .780 .840 .460 .480 . 500 .530 .550 .570 .590 .610 .700 .710 .720 .760 .640 .680 .720 .760 .800 .860 .521 .770 .840 .680 ‘.530 3.630 ». 680 *. 730 3. 780 3.830 .500 .560 .620 .640 .690 .740 .600 .640 .680 .720 .800 .640 .680 .720 .760 .800 .860 .521 .770 .600 .673 .720 .755 .790 .880 .600 .673 .720 .755 .790 .880 125 Wage and Hour Statistics T a b l e 4 .— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities— Continued Rates of wages per hour Rates of wages per hour City and classification City and classification June 1, 1942 June 1, 1941 New York, N . Y —Continued New York, N . Y .—Continued B u s s e s — C o n tin u e d . F ifth A v e n u e C o a ch C o.: D riv e rs: F ir s t y e a r __________ S eco n d y e a r ________ T h ir d y e a r _________ F o u r th y e a r ________ A fte r 4 y e a r s _______ C on d u cto rs: F ir st y e a r ---------------S eco n d y e a r ________ T h ir d y e a r _________ F o u r th y e a r -----------A fter 4 y e a r s _______ G r een L in es: F ir s t 6 m o n t h s _________ 7-12 m o n t h s ____________ S eco n d y e a r ------- ----------T h ir d y e a r . ....................... .. A fter 3 y e a r s ........... .......... J a m a ic a B u s s e s , In c .: F ir s t y e a r ------- ------------S eco n d y e a r ____________ T h ir d y e a r _____________ F o u r th y e a r ------------------A fte r 4 y e a r s ___________ M a n h a tta n a n d Q u ee n s L in e: F ir s t 6 m o n t h s _____ . . . . 7-12 m o n t h s ____________ S ec o n d y e a r .............. .......... T h ir d y e a r --------.-----------A fter 3 y e a r s ___________ N e w Y o r k C it y O m n ib u s C o .: F ir s t 6 m o n t h s _________ 7-12 m o n t h s ____________ S eco n d y e a r . . . . ________ T h ir d y e a r . .............. .......... F o u r th y e a r ........................ A fter 4 y e a r s ___________ N o r th S h or e B u s L in e s: F ir s t y e a r . _____________ S eco n d Y e a r ____________ T h ir d y e a r --------------------F o u r th y e a r ------- ----------Q ueens - N a ssa u T r a n s it L in es: F ir s t y e a r ------------ --------S eco n d y e a r ------- ----------T h ir d y e a r --------------------F o u r th y e a r ......................... A fter 4 y ea r s____________ S c h en ck T r a n s p o r t a t i o n C o.: F ir st y e a r ______ _____ — S econ d y e a r ____________ A fter 2 y e a r s ----------------S ta te n I s la n d C o a ch C o.: F ir s t 3 m o n t h s _________ 4-6 m o n t h s _____________ 7-9 m o n t h s _____________ 1 0 -1 2 m o n t h s ...................... 13-18 m o n t h s ..................... 19-24 m o n t h s ............... .. A fter 2 y e a r s ___________ S te in w a y O m n ib u s an d Q u ee n sb o ro B r id g e R a il w ay: F ir s t 3 m o n t h s _______ 4 -6 m o n t h s ________. . . Busses—Continued. Steinway Omnibus and Queensboro Bridge Rail w ay-C ontinued. 7-9 m onths:_______ 1 0 -1 2 m onths_______ 13-15 m onths_______ 16-18 m onths_______ 19-21 m onths_______ 22-24 m onths_______ Third year________ Fourth year_______ Fifth year_________ After 5 years_______ Third Avenue Railway System: First 3 months....... ........ 4-6 m onths__________ 7-9 m onths__________ 1 0 -1 2 m onths________ 13-15 m onths________ 16-18 m onths________ 19-21 m onths________ 22-24 months________ Third year__________ Fourth year_________ Fifth year___________ After 5 years______ ... Tri-Boro Coach Corpora tion: First year_______ ____ Second year_________ Third year__________ Fourth year_________ Fifth year___________ $0.790 .800 .830 .840 .850 $0. 790 .800 .830 .840 .850 .720 .730 .760 .770 .780 .720 .730 .760 .770 .780 . 650 .700 .750 .800 .875 .605 .605 .630 660 .790 .705 .738 .771 .815 .870 .610 .640 .670 .720 .770 .650 .680 .705 .730 .830 .610 .640 .665 .690 .770 .710 .800 .860 .920 .940 .650 .740 .800 .860 .880 .940 1.000 .710 .760 .830 .910 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .520 .540 .560 .590 .610 .630 .650 .670 .760 .790 .810 .860 400 480 500 530 550 570 590 610 700 730 750 780 .600 .650 .700 .740 .830 cars and busses: First 6 months___ 7-12 m onths_____ 13-24 months____ After 2 years........ Interurban______ « .570 « .600 L630 » .660 8.680 570 590 620 650 670 Omaha, Nebr. .730 .810 .900 .900 .638 .680 .760 .810 .850 .650 .680 .770 .650 .680 .725 ».705 *.730 » .755 » .780 « .805 » .840 ».875 .680 .705 .730 .755 .780 .815 .850 .460 .560 .480 .580 »Increase of 2J4 cents per hour, Aug. 1, 1942. « Increase of 6 cents per hour, July 1, 1942. ^ Increase of 7 cents per hour, July 1,1942. »Increase of 10 cents per hour, July 1,1942. 5011 5 2 — 43------- 9 500 510 520 540 560 580 590 620 630 770 Oklahoma City, Okla. 1-man 2 -man .688 $0 . 600 .620 .640 .660 .680 .700 .760 .770 .780 .860 cars: First 6 months - _________ 7-12 months_____________ 13-18 months____________ Busses: First 6 months__________ 7-12 months_____________ After 1 year_____________ Peoria, III. 1 -man cars and busses: First year______________ Second year------------------After 2 years---------------Philadelphia, Pa. Subway, elevated, and high speed lines: Motormen: First 6 months_______ 7-12 m onths_________ 13-18 m onths________ 19-24 m onths................. After 2 y ears-.............. .610 .630 .650 .660 .680 .700 .790 .810 .830 .720 .740 .760 .810 .835 .860 .885 .910 .730 .755 .780 .805 .830 126 Monthly Labor Review—-January 1943 T able 4.— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities—Continued R ates of w ages per hour C ity and classification June 1, 1942 June 1, 1941 Philadelphia, Pa.—Continued Subway, elevated and high speed lines—Continued. Conductors: First 6 m onths.......... . 7-12 m onths_________ 13-18 months________ 19-24 m onths................. After 2 years_________ 2 -man cars: First 6 months__________ 7-12 m onths____ ________ 13-18 m onths____________ 19-24 m onths____________ After 2 years____________ 1 -man cars and busses: First 6 months___________ 7-12 m onths_____________ 13-18 m onths____________ 19-24 months____________ After 2 years____________ $0. 730 .755 .780 .805 .830 I. 650 .675 .700 .725 .750 .730 .755 .780 .805 .830 .650 .675 .700 .725 .750 .810 .835 .860 .885 .910 .730 .755 .780 .805 .830 .790 .750 Busses: First 6 months7-12 months__ After 1 year___ $0. 710 .730 .750 $0. 660 .680 .700 .560 .620 .680 .730 .560 .620 .680 .730 .630 .690 .750 .800 .630 .690 .750 .800 St. Louis, Mo. 2-man cars: F irst 6 m on ths____ 7-12 m on th s_______ 13-18 m onths ______ A fter 18 m o n th s___ 1-man cars and busses: First 6 m o n th s____ 7-12 m on th s........ ...... 13-18 m on th s_______ A fter 18 m o n th s___ Service ears: First 6 m on th s_____ 7-12 m on th s................ 2-3 years___________ A fter 3 years_______ .550 .575 .600 .625 Salt Lake City, Utah .810 .900 .955 .810 .900 .955 Busses: First year_______________ A fter 1 year_____________ .690 .800 .830 .840 .690 .800 .830 .840 B u sses. «. 690 ». 770 .580 .660 i°. 790 .745 .650 .675 .700 .725 .750 .625 . 650 .675 .700 .725 .750 .725 .750 .775 .800 .825 .850 .725 .750 .775 .800 .825 » . 750 1». 825 .750 .825 .660 .710 .780 .640 .690 .720 .920 .840 .870 .900 San Antonio, Tex. San Francisco, Calif. .800 .700 Portland, Oreg. 1 -man cars and busses: If employed before April 1 , 1942: First 3 months_______ .950 4-12 months_—.......... .970 After 1 year.............. ... 1 .000 If employed after April 1, 1942: First 6 months_______ .900 7-12 months_________ .920 13-18 months________ .940 19-24 months________ .960 After 2 years_________ 1.000 Providence, R . I. 1man cars and busses: First 3 months..................... .800 4-12 m o n th s...____ _____ .830 After 1 year____________ ] .850 Rochester, N . Y. 2man subway cars— ....... Busses: First 3 months_____ _____ .860 4-12 months................ .880 After 1 year................ ...... I ’ .900 9 Increase of 1 cent per hour, Oct. 26,1942. 10 Increase of 5 cents per hour, Ju ly 1, 1942. 11 Increase of 12)3 cents per hour, J u ly 1, 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 1, 1941 St. Paul, M inn. Portland, Maine Busses. 1942 (See M inneapolis, M inn.) Pittsburgh, Pa. 1-man cars: F irst 3 m onths _ 4-12 m on th s___ A fter 1 year___ B usses: First 3 m onths 4-12 m o n th s___ Second y ea r___ A fter 2 years— June 1 , Rock Island (III.) District Phoenix, Ariz. 1-man cars and busses—. Rates of wages per hour C ity and classification .800 .830 .850 2-man ears: F irst 6 m o n th s ...................... 7-12 m on th s______________ 13-18 m on ths______________ 19-30 m on th s_____________ A fter 30 m o n th s___________ Cable cars: G ripm en and conductors.. . Busses: First 6 m o n th s................. ....... 7-12 m o n th s_______________ 13-18 m o n th s______________ 19-30 m on th s______________ After 30 m on th s___________ M unicipal R ailw ay: M otorm en and conductors. B u sses.______ _____ _______ Scranton, Pa. .725 .755 .775 1-m an cars and busses: First 3 m o n th s___ 4-12 m on th s______ After 1 year............. Seattle, Wash. .750 .740 .760 .780 Busses: First 6 m on th s. 7-12 m on th s___ After 1 year___ 1.000 1.000 127 Wage and Hour Statistics T able 4.— Union Rates of Wages of Street-Railway Employees, June 1, 1942, and June 1, 1941, by Cities—Continued R ates of w ages per hour C ity and classification C ity and classification June 1, 1942 June 1, 1941 South Bend, Ind. Busses: First y ear.......... ....... Second year................ After 2 years_______ Spokane, Wash. Busses: First year.................. 2-3 years..................... After 3 years.............. Springfield, Mass. Busses: First 3 months........ . 4-12 m onths............... After 1 y ear............... Tampa, Fla. Busses: First 6 months........ . After 6 m onths.......... Toledo, Ohio 1-m an cars and busses: First 6 months........... 7-12 m onths_______ After 1 y ear............... R ates of wages per hour June 1, 1942 Washington, D. C. $0.750 .775 .800 $0. 650 .675 .700 .650 .700 .750 .600 .640 .680 .780 .830 .870 .720 .770 .810 2-m an cars: First 3 m on th s_____ ______ » $0.680 4-12 m on th s_______________ u . 720 A fter 1 year___ __ _______ 12 .760 1-m an cars and busses: 12. 780 First 3 m on th s____________ 12. 820 4 -1 2 m on th s___________ ___ 12. 860 After 1 year_______________ .730 .770 .790 I3. 710 in. 760 is. 810 .710 .760 .810 .600 .650 .720 .600 .650 .720 .830 .880 .750 .800 York, Pa. Busses: First 6 m o n th s____________ 7-12 m on th s_________ A fter 1 year_________ .460 .540 $0. 660 .700 .720 Worcester, Mass. 1-m an cars and busses: First 3 m o n th s____________ 4-12 m o n th s_______________ A fter 1 year___________ __ Youngstown, Ohio .790 .810 .840 .740 .760 .790 Busses: First year_________________ A fter 1 year_______________ 12 Increase of 9 cents per hour, Ju ly 1, 1942. 13 P lu s bonus of $90 per year, paid in quarterly in stallm ents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June 1, 1941 128 Monthly Labor Review—January 1943 WAGES AND HOURS OF UNION MOTORTRUCK DRIVERS A N D HEI FERS, JUNE 1, 1942 ■ Summary THE average hourly wage rate of union motortruck drivers in 75 cities was 89.2 cents on June 1, 1942. Unionized helpers averaged 72 8 cents and the average for the combined truck driver and helper occu pations was 86.8 cents. Based on comparable quotations for both June 1, 1941, and June 1, 1942, the general level of hourly rates ad vanced 6.8 percent for drivers, 8.7 percent for helpers, and 7.0 percent lor the combined groups. Actual rates for drivers ranged from 30 cents per hour for taxi drivers in Charleston, W. Va., to $2.00 per hour for operators of dump trucks of a capacity of 8 cubic feet or over m St Louis. Helpers had a range in rates between 34.7 cents lor some of the helpers on city freight trucks in Atlanta to $1.25 for helpers on theatrical-equipment trucks in New York City. The averages quoted above cover city trucking primarily, although over-the-road drivers were also included when they were paid on an hourly, rather than a mileage, basis. The survey included 3,000 wage quotations covering 256,900 union members. The term “truck drivers’’ covers a heterogeneous group of occupations, such as drivers of building and excavating trucks, coal trucks, ice trucks, general hauling and transfer trucks, delivery trucks hauling various and miscellaneous commodities, and express and freight trucks. In each of the many classifications of hauling, different types and sizes of trucks are likely to be used. Each truck-driving occupation and each size and type ot tiuck usually has a different wage rate. Furthermore, there is S'1eat variation among the different cities, not only in respect to the commodities handled under union agreements, but also in respect to the types of trucks and the terminology used to describe the different occupations. For these reasons it is impossible to make an intercity classification by types. The data on all truck driving in all cities studied, therefore, are treated as for one trade in this study, division being made only between drivers and helpers. Wage payments for drivers doing local hauling, or making local ( 7 V r T S , eh C^P no^ involve sales functions, are almost universally established on a time basis. Most frequently the agreements specify nouily lates, although daily or weekly wage scales are not uncommon, n older to achieve comparability, these daily and weekly wage scales ia\ o been converted to an hourly basis whenever the agreements specmed the number of hours for which the scales applied. Some trucking agreements, although specifying wage scales on an hourly, daily, or weekly basis, do not set the number of hours that shall constitute full time. (Quotations of this type consequently have been omitted in the computation of average full-time hours and in the table showing the distubution according to hours per week. When the wage rates were given on an hourly basis these quotations have been included in all rate computations, but when a specified wage scale could not be con verted to an hourly basis it has been excluded. Agreements covering route drivers, particularly those handling .aveiy products, beer, laundry, and milk, commonly classify the 1 Prepared in th e B u reau ’s Industrial R elations D ivision , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 129 Wage and Hour Statistics drivers as salesmen. Ordinarily, the compensation of these drivers is specified as a weekly guaranty plus various commissions based upon the volume of deliveries or collections. Similarly, the agreements covering road drivers commonly specify either trip or mileage rates rather than hourly wage scales. All quotations specifying such com mission, trip, or mileage wage scales, which could, not be converted to an hourly basis, have been excluded from the computations upon which this report is based. D istrib u tio n of M em bers A ccordin g to H o u rly W age Rates Thirty-seven percent of the union truck drivers had hourly rates between 80 and 95 cents, and 20 percent had rates of 95 cents to $1.05. Over 17 percent of the drivers received $1.05 or more per hour, while less than 80 cents per hour was paid to almost 26 percent of the total membership. A substantial majority (56.1 percent) of the helpers had hourly rates from 65 cents up to 85 cents. Only 2.9 percent were receiving as much as $1.00 per hour, with none higher than $1.25; more than half (54.1 percent) had rates less than 75 cents per hour. T able 1.-—Percentage Distribution of Union Motortruck Drivers and Helpers, by Hourly Wage Rates, June 1, 1942 Classified hourly rate Driv ers and Driv help ers ers Help ers Average hourly rate. ____ $0 .8 6 8 $0. 892 $0.728 Percent of members whose rates were— Under 40 cen ts_____ 40 and under 45 cents... 45 and under 50 cents... 50 and under 55 cents... 55 and under 60 cents... 60 and under 65 cents.. 65 and under 70 cents... 70 and under 75 cents... 75 and under 80 cen ts... 1 Less .1 .5 1 .1 1.7 3.0 4.2 4.2 6.3 10.4 .1 .2 .5 1 .2 2 .6 3.5 3.0 4.5 9.9 .6 2.3 4.1 4.9 5.5 8 .1 1 1 .6 17.0 13.1 Classified hourly rate Percent of members whose rates were— 80 and under 85 cen ts... 85 and under 90 cents.._ 90 and under 95 cents. . . 95 cents and under $1.00. $1.00 and under $1.05__ $1.05 and under $1.10__ $1.10 and under $1.15__ $1.15 and under $1.20__ $1.20 and under $1.25__ $1.25 and under $1.30__ $1.30 and over______ . Driv ers and Driv Help help ers ers ers 14.8 9.8 14.6 10.4 1 1 .0 6 .6 1 2 .0 11.3 4.8 4.5 2 .8 .8 1.4 .7 7.1 13.1 5.4 5.2 3.3 1 .0 1 .6 .8 14.4 6.5 5.5 3.5 .8 1.4 .4 .2 .1 0) than a tenth of 1 percent. W eekly H o u rs , 1942 The average full-time weekly hours in effect for union drivers and helpers was 46.4 on June 1, 1942. The 48-hour week was most preva lent in the trucking industry, 37 percent of the drivers and 43 percent of the helpers having this workweek. Over 27 percent of the drivers and about 22 percent of the helpers were covered by the 40-hour week. The 44-hour week ranked third, including about 10 percent of the drivers and 13 percent of the helpers. Weeks longer than 48 hours were worked by 20 percent of the drivers and 14 percent of the helpers. The longest workweek was in Charleston, W. Ya. which reported a 72-hour week for taxi drivers. The effect of the Fair Labor Standards Act, in limiting straight-time working hours to 40 per week for workers in interstate commerce, was reflected in a number of motortruck drivers’ agreements. The ma jority of the drivers, however, as is indicated by the prevalence of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 04 G D ISTRIBU TIO N OF UNION MOTORTRUCK D R IV E R S AND H ELPER S ACCORDING TO HOURLY WAGE RATES JUNE I, 1942 PERCENT OF MEMBERS PERCENT OF MEMBERS 40 40 HELPERS 30 30 20 - 20 10 10 J7777X UNDER UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.20 1.30 1.30 OVER ANO UNDER $ .4 0 HOURLY WAGE RATES AND Monthly Labor Review—January 1943 DRIVERS 131 Wage and Hour Statistics hour scales in excess of 40 per week, were considered either as working in strictly intrastate commerce, to which the act does not apply, or were drivers of common, contract, or private motor carriers engaged in transportation in interstate commerce, which are generally exempt from the overtime provisions of the Fair Labor Standards Act. Driv ers in the latter classification are subject to the regulations of the Interstate Commerce Commission, which has ruled that no employer of drivers operating vehicles in interstate commerce may require drivers in its employ to remain on duty for more than 60 hours in a period of 168 consecutive hours, with the exception that carriers operating vehicles every day of the week may permit drivers to remain on duty 70 hours in a period of 192 consecutive hours. Furthermore, drivers are limited to 10 hours’ aggregate driving in any period of 24 hours, unless they are off duty 8 consecutive hours during or immedi ately following this driving period. An exception from the daily limitation is made in the event of adverse weather conditions or un usually adverse road or traffic conditions necessitating hours of driving in excess of 10, when drivers may be permitted to operate vehicles up to 12 hours in any given day or days, provided, however, that the extra 2 hours are necessary to complete a trip.2 In a number of cases the 60-hour scales specified in the agreements are basically a restatement of these ICC regulations. In a number of the reports, particularly those showing 60 hours as the full-time work week, it was indicated that the hours specified in the agreement merely constituted the maximum permitted at straight time, and that fre quently actual working hours were considerably less, depending upon the amount of work available. T able 2.—Percentage Distribution of Union Motortruck Drivers and Helpers, by Hours per Week, June 1, 1942 Hours per week Drivers and helpers Average weekly h o u rs.......................................... Percent of members whose hours per week were— Under 40. _________________ _________ 40 ______________ ______ _________ Over 40 and under 44_______________ . . . 44___________________________________ Over 44 and under 48__________ ______ 48 ______ ____________________ Over 48 and under 54-------- ------ -----------54 ______________________ Over 54 and under 60-------- ------------- ----60 ________ _____________ Over 60....................... ................................ 46.4 1 ,2 26.4 .5 1 0 .0 5.1 38.0 7.4 5.8 1 .6 4.0 (0 Drivers Helpers 46.4 46.3 1 .1 27.2 .5 9.5 4.7 37.4 8 .2 5.4 1.7 4.3 (') 1 .2 21.5 .4 1 2 .6 7.2 43.3 2.5 8 .2 1 .0 2 .1 (■) > Less than a tenth of 1 percent. Overtime Rates Time and one-half was the most prevalent overtime rate in union trucking agreements. Over three-fourths of the quotations for drivers and helpers specified this penalty rate. These quotations covered 2 An essential difference between the hour regulations of the Interstate Commerce Commission and of the Fair Labor Standards Act should be noted. Whereas the Interstate Commerce Commission regulations specify maximum hours which may not be exceeded, the regulations under the Fair Labor Standards Act merely specify the maximum hours that may be worked at straight-time rates, and do not limit the number of total hours that may be worked, provided time and a half is paid for all hours m excess of the specified normal week. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 132 Monthly Labor Review—January 1943 72.7 percent of the drivers and 71.1 percent of the helpers. Other overtime provisions which affected a substantial number of members were those providing fixed rates rather than multiples of the regular rates. Some members were covered by overtime rates of one and onethird or one and one-fourth times the normal rate. In 14.9 percent of the drivci quotations and 12.6 percent of the helpers no overtime rates were specified, and in a few instances overtime was prohibited. Pro hibitions of overtime usually pertained to interstate over-the-road drivers, who were limited to 60 hours per week. A great many of the trucking agreements specified that the over time i ate should apply only on the basis of cumulative weekly hours and not on a daily basis. A number also provided a daily or weekly tolerance, whereby a limited amount of overtime could be worked without payment of any penalty rate. This tolerance generally was not over 6 hours per week. A number of quotations covering drivers and helpers considered subject to the Fair Labor Standards Act were modified to provide that the straight-time weekly hours should be reduced to conform to the law, but that each regular driver and helper should be guaranteed sufficient overtime each week to equal the full working time specified m the pievious agreements. In some instances the hourly rate for straight time was retained unchanged under the new schedule of hours which resulted in larger net weekly earnings for the members affected’ in other cases net earnings were increased by a combination of an increase m the scale of wages and an increase in the number of guaran teed overtime hours. T able 3 .—Overtime Rates Provided for Motortruck Drivers and Helpers in Union Agreements, June 1, 1942 Drivers and helpers Overtime rate No penalty rate provided.. Time and one-half_______ Double time____________ Other penalty scales 1____ 1 Drivers Helpers Number Percent Number Percent Number Percent of quota of mem of quota of mem of quota of mem bers bers bers tions tions tions affected affected affected 433 2,297 18 251 10.9 72.5 .8 15.8 363 1 ,8 6 8 15 196 10.9 72.7 .9 15.5 70 429 3 55 10.7 71.1 .7 17.5 Fixed penalty scales, time and one-third, or time and one-fourth, etc. Trend of W age and Hour Scales Data based on comparable quotations for the trucking industrv are available only for the past 6 years. Since 1936 the movement of wage rates has been consistently upward and until 1942 that of allowed wcevly hours has been generally downward. Union hourly wage rates for drivers increased 6.8 percent, on the average, during the year ending June 1 1942, and helpers' rates increased 8.7 percent. 4 uli-time hours for drivers and helpers, on the average, increased 0 4 percent during the year ending June 1, 1942; 0.1 percent for drivers and 2.0 percent for helpers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 133 Wage and Hour Statistics T able 4.-—Percent of Change in Union Hourly Wage Rates and Weekly Hours for Motortruck Drivers and Helpers, 1936 to 1942 Drivers Drivers and helpers Yearly period 1936 to 1937 to 1938 to 1939 to 1940 to 1941 to 1 Not 1937__________________________ 1938__________________________ 1939_________________________ 1940__________________________ 1941__________________________ 1942__________________________ Hourly wage rates Weekly hours + 6 .6 +3.6 + 2 .2 + 2 .0 +4.0 +7.0 -0 .9 Hourly wage rates (0 +3.6 + 2 .2 + 2 .1 +3.8 + 6 .8 0 - .9 - .9 - .7 + .4 Helpers Weekly hours ) 0 0 -.8 -.8 - .7 + .1 Hourly * wage rates Weekly hours (>) +3.5 + 2 .6 + 2 .0 +5.0 +8.7 0 ) 0 ' - 1 .2 -1 .3 - .7 + 2 .0 available. Changes Between 1941 and 1942 Wage rales.—Almost 70 percent of the organized truck drivers and helpers received increases in hourly wage rates during the year ending June 1, 1942. A larger proportion of the helpers (80.6 percent) received raises than did the drivers (67.6 percent). Reductions in scales were reported for only 0.2 percent of the drivers and 0.1 percent of the helpers. T able 5.—Number of Changes in Union Rates of Motortruck Drivers and Helpers, and Percent of Members Affected, June 1, 1942, as Compared With June 1, 1941 Drivers and helpers Type of change Drivers Helpers of Number of Percent'of Number of Percent of Number of Percent members quotations members quotations members affected quotations affected affected Increase_________ - ----------Decrease________ ________ No change. _______ ___ 1,745 69.5 10 .2 674 30.3 1,418 9 540 67.6 .2 32.2 327 1 134 80.6 .1 19.3 Of the total number of drivers receiving increases during the year, over four-fifths had their rates raised by less than 15 percent. In creases of less tiian 5 percent were received by 10.4 percent of the total membership. Increases of at least 5 percent but less than 10 percent were most common among truck drivers (24.9 percent). However, increases of 10 percent and less than 15 percent were also quite preva lent (19.9 percent); 12.4 percent of all drivers included in the survey received advances of at least 15 percent over their previous rates, most of these being less than 20 percent. About 42 percent of the total helpers benefited by raises of less than 10 percent. Increases of less than 5 percent covered 6.3 percent of the membership, and 35.4 percent had their 1941 scales advanced by between 5 percent and 10 percent. Approximately 22 percent had their rates raised by between 10 percent and 15 percent, and 3.9 percent received advances of 25 percent or more. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 334 T able 6.—Number and Percent of Increases in Rates of Motortruck Drivers and Helpers and Percent of Members Affected, June 1, 1942, as Compared With June 1, 1941 Drivers and helpers Amount of increase Less than 5 percent- 5 and under 10 percent 10 and under 15 percent 15 and under 20 percent -20 and under 25 percent 25 and under 30 percent 30 and under 35 percent -. 35 and under 40 percent 40 percent and over_______ Drivers Helpers Number of Percent of Number of Percent of Number of Percent of members quotations members quotations members affected quotations affected affected 182 518 553 256 132 62 15 13 14 9.8 26.4 20.3 6.7 3.9 1.4 .2 .3 .5 154 420 462 197 99 53 9 10.4 24.9 19.9 6.7 3.5 1.3 12 12 .3 .4 .2 28 98 91 59 33 9 6 1 2 6.3 35.4 2 2 .2 6.7 6 .1 1.7 .6 .1 1.5 . M a x im u m w eekly ho u rs. Almost 8 percent of the quotations cover ing drivers reported a i eduction in straight-time working hours during the past year. These changes affected 3.8 percent of the organized dm eis. Among helpers, decreases in maximum weekly hours were listed in 7.1 percent of the quotations also covering 3.8 percent of the members. Approximately 95 percent of the members in both classi fications retained their 1941 working schedules. T able 7. Number of Changes in Union Hours of Motortruck Drivers and Helpers, and Percent of Members Affected, June 1, 1942, as Compared With June 1, 1941 Drivers and helpers Type of change Increase______ _ Decrease________ No change______ Drivers Helpers Number of Percent of Number of Percent of Number of Percent of members quotations members quotations members affected quotations affected affected 65 182 2,136 1 .8 3.8 94.4 50 150 1, 733 2 .0 3.8 94.2 15 32 403 1 .0 3.8 95.2 Average Rates , by City • ? sh,0ws the avera2e rate for driver occupations in each city included m the survey except for Charleston, S. C , where sufficient quotations to compute an average were not obtained. The average shown lor each city is a composite of all driver rates quoted for that d ty weighted by the number of union members covered by each rate Seattle had the highest rates, on the average ($1,119 per hour) while bpokane was next in line with an average of $1.083. New York City ranked third ($1,061), followed by Newark ($1,022). Nine addi tional cities had higher averages than the 89.2 cents average for all 74 cities; Los Angeles (99.8 cents), Portland, Oreg. (97.6 cents), Butte (96.4 cents), Phoenix (96.3 cents), Detroit (94.9 cents), San Francisco T W C l e v e l a n d (918 cents), Pittsburgh (91.8 cents), and South o i^9'4LCents!' Twenty-five cities had average rates between 75 and 85 cents; 15 between 65 and 75 cents, and 10 between 55 and 65 cents. Dallas had the lowest average (53.2 cents). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics T able 135 8 . — Average Hourly Rates of Union Motortruck Drivers, by City, June 1, 19421 City Average hourly rate 2 Seattle, Wash----- -----Spokane, Wash--------New York, N. Y _____ Newark, N. J -----------Los Angeles, Calif-----Portland, Oreg______ Butte, Mont .............. Phoenix, Ariz________ Detroit, M ich_______ San Francisco, Calif.. . Cleveland, Ohio_____ Pittsburgh, P a______ South Bend, In d ......... Average for all cities___ Salt Lake City, U tah.. Chicago, 111_________ Milwaukee, Wis_____ Philadelphia, P a .____ Boston, Mass.......... — Toledo, Ohio________ Youngstown, Ohio----Mobile, A la................. Buffalo, N. Y _______ Denver. Colo............... Madison, Wis............... $1,119 1.083 1.061 1 .0 2 2 .998 .976 .964 .963 .949 .924 .918 .918 .894 .892 .887 .884 .883 .869 .867 .8 6 6 .862 .848 .847 .839 .832 City New Haven, Conn — St. Paul, M m n--------Washington, D. C ----Rochester, N. Y -------Indianapolis, In d ------Peoria, 111__ - - ------Little Rock, Ark------Springfield, Mass------Minneapolis, M inn---Dayton, Ohio______ Columbus, Ohio-------Charleston, W. Va___ Cincinnati, Ohio_____ Providence, R. I ----St. Louis, Mo_______ Worcester, Mass-------Rock Island (111.) distric t 3__________ -Reading, P a ________ Binghamton, N. Y ___ Erie, P a___ ______ Baltimore, M d ------Scranton, P a-----------Duluth, M inn___ . . . Des Moines, Iowa__ - Average hourly ra te 2 $0.830 .828 .826 .816 .812 .810 .807 .803 .800 .795 .789 .788 .787 .776 .775 .775 .766 .764 .762 .761 .758 .758 .737 .736 1 D o e s n o t in c lu d e d riv e rs p a id o n a c o m m iss io n or m ile a g e b a sis. n u m b e r r e c e iv in g eac h d iffer en t rate. 2 H e lp e r s are n o t in c lu d e d in th is ta b le a s in p r e v io u s y ea r s. s I n c lu d e s R o c k I sla n d , 111., D a v e n p o r t, Io w a , a n d M o lin e , 111. City Average hourly rate 2 Omaha, Nebr_______ Kansas City, M o------Louisville, K y----------York, P a----------------Birmingham, Ala____ Grand Rapids, M ich... Portland, Maine__ . Manchester, N. H ----Oklahoma City, Okla.. Jacksonville, F la... . . . Tampa, F la ... ------Wichita, Kans_______ Houston, Tex_______ Nashville, T enn---- -Atlanta, Ga. ----------New Orleans, L a------Charlotte, N. C--------Memphis, Term-------Norfolk^ Va_________ El Paso, Tex________ Jackson, Miss_______ Richmond, Va____ .. San Antonio, Tex____ Dallas, Tex. -------- .. $0. 733 .730 .726 .726 .720 .714 .713 .703 .6 8 8 .661 .653 .653 .651 .648 .639 .621 .612 .610 .606 .603 .590 .572 .559 .532 A v e r a g e s are w e ig h te d a cc o rd in g to WWW WAGE-RATE CHANGES IN U NITED STATES INDUSTRIES THE following table gives information concerning wage-rate adjust ments occurring during the month ending October 15, 1942, as shown by reports received from manufacturing and nonmanufacturing estab lishments which supply employment data to the Bureau of Labor Statistics. . As the Bureau’s survey does not cover all establishments m an indus try and furthermore, as some firms may have failed to report wagerate changes, these figures should not be construed as representing the total number of wage changes occurring in manufacturing and non manufacturing industries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 136 Monthly Labor Review—January 1943 Wage-Rate Changes Reported by Manufacturing and Nonmanufacturing Establishments During Month Ending October 15, 1942 1 Establishments Num ber reporting mcoverec creases Group and industry Total num- All m anufacturing..._____ ______ ____________ 34,639 Durable goods___________________________ 13, 533 Nondurable goods________________________ 21,106 ' Iron and steel and their products, not including machinery________________________________ Blast furnaces, steel works, and rolling m ills.__ Wire drawn from purchased rods___________ Wire work_______________________________ Cutlery and edge tools____________________ Tools (except edge tools, machine tools, files, and saws)_______ ______________________ Hardware_______________________________ Plumbers’ supplies___________________ Stoves, oil burners, and heating equipment, not elsewhere classified__________________ Steam and hot-water heating apparatus and steam fittings____ ______________________ Stamped and enameled ware and galvanizing.. Fabricated structural and ornamental metal work_________________________________ Bolts, nuts, washers, and rivets___________ Forgings, iron and steel___________________ Wrought pipes, welded and heavy riveted___ Screw-machine products and wood screws... Guns, howitzers, mortars, and related equip m ent______________________________ Gray-iron castings___________________ Boiler-shop products__________________ ’ _’ ( Electrical machinery____________ __________ Electrical equipment, not elsewhere classified’ . Communication equipment________________ Radios and phonographs________________ Machinery, except electrical______________ ____ Machinery and machine-shop products . Machine tools___________________________ Machine-tool accessories______________ Textile machinery_______________ Metalworking machinery___________ Employees Total number covered Number receiving increases Average percent] of change in wage rates of employees having increases 855 446 409 9,430,304 5,689,409 3, 740,895 199, 988 134, 648 65,340 7.7 140 28 4 4 3 1,322,137 517,574 33,6 6 6 21, 245 15,107 70, 228 46,271 1, 587 230 64 5.7 5.4 6.3 7.8 5.4 112 4 5 5 17,642 33, 341 17, 947 658 170 135 11.5 8.9 244 10 37,256 983 111 6 258 3,423 8 .1 348 863 3,010 1,623 702 10.4 10.3 5.2 6.7 3,540 335 66 171 97 126 154 283 9 51,031 49,362 292 69 3 9 5 4 34,092 19, 747 28,110 14, 551 32, 300 100 30 100 8 28 527 167 3 734 580 63 91 G) 10 6 59,044 29,805 24 13 3 490,640 8 G) G) G) 3, 928 889 638 15, 235 4,317 1,145 9,773 9.6 6 .6 6 .0 7.3 5.5 8 .6 5.6 6 .2 6 .8 6.5 8 .6 5.3 5.7 847, 698 360,057 91 97 51 7 16 7 4 24, 251 29,433 2,387 701 Automobiles________________________ ____ 386 6 419, 231 3,664 9.7 Transportation equipment, except automobiles Cars, electric and steam railroad____________ Aircraft and parts, excluding engines. _ Shipbuilding and boat building___________ I. 622 73 169 290 15 4 4 5 1, 704, 236 (2) (2) 5,260 987 1,853 684 8.9 14.5 9.2 7.5 Nonferrous metals and their products. Alloying, rolling and drawing (of nonferrous’ metals except aluminum) ________ Jewelry (previous metals) and jewelers’ find-’ mgs-----------------------------------------Lighting equipment________________ ____ Aluminum manufactures_____________ Sheet-metal work________________ ] 1,174 40 331, 666 131 4 165 87 63 167 3 Lumber and timber basic products. Sawmills_____________________•_____ Planing and plywood mills_____________ 1, 277 691 586 ” 2 ,6 6 6 1, 506 145 198 121 4 G) G) (2 ) (2 ) 10, 725 11,605 14,250 6,409 1,903 1 ,6 8 6 5.8 213 5.1 5.8 7.5 5.3 4.5 7.0 7.2 5.9 11 13,105 25 14 174, 826 130,336 44,490 1,756 1,410 346 11 (2 ) 8.9 8,657 458 960 271 3,081 6 7.8 7.9 6 .6 1 0 .1 6 .1 Furniture and finished lumber products_________ 1, 553 35 170,999 2,791 9.6 Mattresses and bedsprings... 197 4 8,443 15 14.7 F u rn itu re._______ ________ " 750 13 106,435 732 8.4 Wooden boxes, other than cigar__---I-’II” I II’ 139 6 14,856 295 9.9 Caskets and other morticians’ goods_________ 108 5 5,988 756 13.8 1 Figures are I1'uV, ^ v ei1 some industries to avoid disclosure of information concerning individual establishments. A t A11"0’ n°wever>included where practicable in “all manufacturing,” and in the various industry groups . No decreases reported. ? Included in group totals but not available for publication separately. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics 137 Wage-Rate Changes Reported by Manufacturing and Nonmanufacturing Establishments During Month Ending October 15, 1942— Continued Establishments Group and industry Total num ber covered Num ber re porting in creases Stone, clay, and glass products...... .......................... Glass____________ ____ __________________ Glass products made from purchased glass___ Brick, tile, and terra cotta _______________ Pottery and related products --------------------Marble, granite, slate, and other products____ Concrete products__ __________ _________ Nonclay refractories, ____________________ 1,581 150 57 463 131 227 113 64 Textiles and finished textile products, _ ________ Textile-mill products and other fiber manufactures, __ __________________ _____ Cotton manufactures except small wares.. Silk and rayon goods_________ ________ Woolen and worsted manufactures except dyeing and finishing.. ______________ Hosiery________________ ___________ _ ____________ Knitted cloth______ _ Knitted outerwear and knitted gloves----------Cordage and twine___________ ___________ Employees Total number covered Number receiving increases Average percent of change in wage rates of employees having increases 20 11 4 4 3 5 227,976 68 , 280 2.967 33, 534 37, 582 4,589 2,852 3,244 12,807 3,217 429 2,534 555 144 17 1, 787 7.9 8.7 12.4 7.9 4.8 9.7 10.9 6.7 6,968 98 1,404,190 20,365 7.1 3,157 829 443 71 14 987,150 468, 662 74,372 16, 534 3,605 1,820 1 1 .6 8 .0 435 490 75 206 65 12 11 3 164,460 94, 913 8,299 17,118 13, 547 8,123 1,532 84 410 340 5.0 6.7 9.3 5.2 8.5 Apparel and other finished textile products______ Housefurnishings, other than curtains, etc----Textile b ag s..____ _ ____________________ 3,811 78 56 27 3 3 417,040 8 , 818 7,939 3,831 1, 587 345 6.7 3.3 7.6 Leather and leather products_______________ . L e a th e r_______________ . , , . ----- ... ___ Boot and shoe cut stock and findings Boots and shoes,, --------- --------- _ ._ , Leather gloves and mittens __________ . __ 1,075 178 126 495 70 34 237,462 37,237 10,198 161,075 9,082 4,901 1,715 820 1,871 133 5.7 5.7 7.8 4.4 5. 6 Food and kindred products----- --------------------Slaughtering and meat packing_____________ Butter__________________________________ Icecream _________ _____ _ . ----------Flour______ . . . , ----- ------- ------- -------Feeds, prepared---- -- ------------- ------------ . Baking__________________________ _____ Confectionery___ _ _ ------------ -----------Beverages, nonalcoholic-------------------- . — Canning and preserving___________________ 5,185 335 297 271 331 108 983 257 601 1,061 92 5 4 3 613, 397 151,117 6 , 419 9,607 16,271 5,752 89,195 44, 697 47, 786 134,239 7,081 158 2,154 2, 555 76 1,025 9.5 9.2 11. 5 13.4 8.5 8.5 9.2 9.2 13.4 10.9 Tobacco manufactures ---- . . . ----------------------Cigars and cigarettes,. . . . . . -------- -----Chewing and smoking tobacco and snuff.. . . . 206 169 37 8 5 3 74,419 62,964 11, 455 1,590 1,091 . 499 1 0 .0 ------------------- -- --------- 1,366 428 680 46 18 16 222,548 134. 620 49, 008 8 , 680 2,958 1,142 0 .1 8 .0 Printing, publishing, and allied industries_______ Newspapers and periodicals-------- ----------- Book and job . . . , . . . . . ----------------Bookbinding____________________________ 2, 532 707 1,429 118 26 4 16 4 166,833 59, 679 74,948 13,025 2,406 8.4 1,194 918 8. 0 9.3 Chemicals, petroleum and coal products . .. .. 2,467 77 550, 326 13, 913 7.8 Chemicals and allied products, ---------------------Paints, varnishes, and colors---------------------Drugs, medicines, and insecticides__ . Chemicals, not elsewhere classified_______ Cottonseed o i l _________________________ Fertilizers. . . . ------- --------- -------- 2,180 479 207 291 154 328 67 15 453, 590 21,864 22, 362 92,782 9, 524 15,008 9,519 434 1, 642 5,444 172 358 8.9 7.9 14. 6 7.1 13. 5 12.9 Products of petroleum and coal-----------------------Petroleum refining, . . ---- ------- -------------Coke and b y p ro d u c ts,.---- -------. . . ------ 287 177 34 10 96, 736 77, 293 11, 053 4, 394 3,263 945 6 .1 Paper and allied products,. . -------Paper and pulp . . , ---- ---Paper boxes-------- ---------------- 8 3 12 3 8 8 12 6 3 8 3 24 9 7 14 6 15 3 12 4 3 100 81 313 122 211 7.2 1 2 .8 14.0 8.7 6 .0 5.4 5.0 Rubber products------------------------------------------- 269 6 150, 418 2,508 7.2 Miscellaneous industries----------- ------------- ------ 1,038 22 221,302 3,896 8.4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 138 Monthly Labor Review—January 1943 Wage-Rate Changes Reported by Manufacturing and Nonmanufacturing Establishments During Month Ending October 15, 1942— Continued Establishments Group and industry N onm anufacturing (except building construction) M etalliferous m in in g________________________ Quarrying and nonm etallic m in in g __________ Crude p etroleu m ..................................... ................. P u b lic utilities: E lectric light and pow er_________________ Street railw ays and busses______________ Trade: W holesale______ ________________________ R eta il__________________________ H o tels______________________________________ L aundries_____________________________ Brokerage_______________________________ Insurance___________________________ Employees Average percent of change in wage rates of employees having increases Total Num num ber re ber porting covered in creases Total number covered 3 87, 050 3 480 3 1,320 3 530 891 5 13 14 3, 065, 200 81, 500 49, 700 31, 600 17, 705 176 164 1, 569 9.3 14.5 9.9 3 2, 580 3 340 54 4 224, 500 144, 600 1,151 1, 532 9.0 9.2 314, 250 3 47, 580 31,730 3 1, 240 3 930 3 3, 440 231 499 16 7 333,200 1,027, 400 136,000 87, 600 13, 500 157,300 3,718 3, 230 2,300 385 73 1,421 6.3 6.9 10.9 8. 6 9.9 8.4 6 37 Number receiving increases 8 .0 3 A pproxim ate—based on previous m o n th ’s sam ple. WAGES IN CANADA, 1941 WAGES in Canada increased considerably from 1940 to 1941—an average rise for all industries of 10 percent, as compared with 3 percent between 1939 and 1940. The figures, however, do not rep resent the wage level at the end of 1941, as in some cases statistics were based on figures for June and in others for September. As a result of the adjustment of the cost-of-living bonuses in the closing months of 1941 and such increases in rates as were made before the ‘ wage ceiling” was provided for in November, the level of wages by December 1941( including the cost-of-living bonus) was probably 15 percent in excess of the 1939 rates or approximately equal to the increase in cost of living after August 1939, which was 14.9 percent. This information is taken from the annual survey of wages and hours in Canada which was published as a supplement to the October 1942 issue of the Labor Gazette.1 . Wage statistics for 1941 include the cost-of-living bonus reported in each case, usually to October; for coal mining and steam railways the adjustments after November 15 were included. In most cases the bonus is computed as a part of the wages and in others it is specified by footnote, in the tables, of which some are shown in the present sum mary. Many of the bonuses were given in accordance with order in council of December 17,1940 (P. C. 7440), for the guidance of boards of conciliation and investigation dealing with wage disputes in mines, some public utilities, and war industries. The same policy was recommended for adjustment of wages generally. The order was amended in June 1941 to provide a bonus of 25 cents weekly for each 1-point rise in the cost-of-living index (adjusted to the August 1939 base as 100) during the period from August 1939 or from the last Department of Labor. Wages and Hours of Labor in Canada, 1929, 1940 and 1941. Ottawa, (Keport No. 25.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics 139 increase in basic rates of wages after August 1939. Application extended to adult males and females paid 50 cents an hour or more; and to male workers under 21 years of age and females paid less than 50 cents an hour, who were entitled to receive a bonus of 1 percent of basic wage rates. Adjustment was to be made not oftener than once every 3 months and when the index rose at least 5 points. On October 24, 1941, the National War Labor Board was ordered appointed under P. C. 8253 and provision made for wage stabilization and the payment of cost-of-living bonuses to be adjusted quarterly according to changes in the official index of cost of living. Changes in basic rates could be made only on written permission of the Board. Adjustments were ordered made in bonuses paid under P. C. 7440 to compensate for later changes in cost of living and those employers who were not paying bonuses were required to begin on February 15, 1942, to compensate for rises in living costs between October 1941 and January 1942 or for such other period as the Board finds fair and reasonable. The new order specified quarterly increases or decreases in the amount of all bonuses. For each rise of 1 percentage point in the cost of living, the amount of the bonus was fixed at 25 cents per week for adult males and other employees paid basic wage rates of $25 or more weekly; and at 1 percent of the basic weekly wage rate for males under 21 years of age and females having basic rates of under $25 a week. Employees above the rank of foreman were excluded from the bonus payment. After November 15, 1941, the bonus payable to those receiving the full bonus under P. C. 7440 (not having had a wage increase since August 1939) was $3.65 a week on the basis of the adjusted index for October 1, 1941 (114.6, or a rise of 14.6 points). Recovery in wages since 1933, following the industrial depression after 1929, varied considerably in different industries. Building trades showed the smallest rise from 1933, having fallen precipitately after 1929 from a comparatively high level. Average increases were 12 percent for steam railways, coal mining, and common factory labor; 11 percent for miscellaneous factory trades; 10 percent for logging and sawmilling, steamships, and telephones; 9.5 percent in metal mining (many miners also receive bonuses based on price, production, etc.); 9 percent in the metal trades; 7.5 percent on electric railways; 7 percent in laundries; 5.5 percent in the building trades; and 5 percent in the printing trades. Although workers in all manufacturing industries received advances in wages during 1941, the range was wide, that is from 19 percent in the furniture and radio industries to 5 percent in pulp and paper production. Index numbers of rates of wages for various classes of labor in Canada are shown in table 1 for the years 1901 to 1941, inclusive. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 140 T ab le 1.— Index Numbers of Rates of Wages for Various Classes of Labor in Canada, 1901 to 1941 [1935-39=100] Steam Printing Electric trades 3 railways 4 railways Common Coal m ining« factory labor Building trades 1 Metal trades 2 1901 1902 1903 1904 1905 36. 5 38.9 40.8 42.2 44. 2 37.8 38.7 40.4 41.9 43.4 32.0 32.8 33.3 35.2 36.5 33.7 35.8 37.5 38.5 38.7 35.4 37.0 38.6 39.5 38.3 48.8 49.4 50.3 50.2 50.9 1906 1907 1908 1909 1910 46.5 48.5 49.3 50.3 52.6 44.0 45.4 46.7 47.5 49.0 38.4 41. 7 42.8 44.4 46.7 40.0 42.9 43.1 42.8 45.2 40.8 41.6 44.3 44.4 46.3 51.6 55.2 55.9 56.1 55.6 1911_______________________ 1912___ ___________________ 1913________ _____________ 1914_______________________ 1915_______________________ 54.6 58.1 60.5 61.0 61.4 50.2 52.6 55.2 55.4 56.0 48.8 51.1 53.2 54.5 55. 1 46.4 48.7 52.7 53.2 51.6 49.2 50.3 51.4 52.4 52.3 57.5 58.0 59.0 60.1 60.4 49.9 51.6 52.6 53.1 53.1 1916_______________________ 1917_______________________ 1918_______________________ 1919_______________________ 1920_______________________ 62.0 66.5 76.2 89.7 109.5 59.0 70.6 85.6 99.3 115.5 56.3 59.2 65.8 77.6 97.9 53.9 60.4 75.3 7 64.0 54.4 65.9 77.2 93.1 58.0 67.9 80.1 94.7 113.2 1921___________________ ___ 1922_______________________ 1923_______________________ 1924_______________________ 1925_______________________ 103.2 98.4 100.7 102.7 103.1 103.0 95.8 96.0 96.8 96.7 102.9 102.3 100.5 1926.____ _________________ 1927_______________________ 1928_______________________ 1929_______________________ 1930_______________________ 104.2 108.5 112.3 119. 6 123.0 97.8 98.2 99.3 102.9 103.8 105. 5 107.7 108.2 1931_______________________ 1932_______________________ 1933_______________________ 1934_______________________ 1935_______________________ 118.5 107.9 95.6 93.7 96.7 100.9 96.4 93.3 92.7 93.6 1 0 2 .2 97.3 93.8 103.4 104.4 104.7 109.3 119.0 98.6 99.9 101.5 101.9 103.6 108.6 Year 1936_______________________ 1937_______________________ 1938_______________________ 1939_______________________ 1940_______________________ 1941 8______________________ 1 7 trades n f tp T 1 0 0 .1 102.5 103.3 105.7 111.7 1 0 1 .8 102.9 10 2 .1 1 0 2 .6 103.4 98.1 97.7 98.2 3 1 0 0 .6 102.4 81.2 94.6 113.6 101.3 97.2 98.2 98.3 99.0 100.7 94.8 95.8 95.8 95.8 122.9 116.7 116.7 113.5 98.9 1 0 0 .2 99.3 95.8 1 0 0 .1 1 0 2 .0 1 0 2 .0 98.8 99.1 99.6 99.6 99.9 98.5 98.7 98.4 98.7 98.9 99.9 96.8 95.5 96.1 97.8 96.4 91.3 88.4 89.8 92.0 8 6 .1 102.3 104.7 105.1 104.7 100.7 96.3 96.2 96.8 97.8 100.4 1 0 2 .1 102.7 105.6 113.7 105.0 105.0 8 102 .4 94.6 92.4 89.3 94.6 94.6 1 0 0 .8 105.0 105.0 105.0 117.7 116.6 97.9 98.4 102.9 102.9 104.0 116.6 96.2 95.5 96.3 97.9 94.5 1 0 2 .8 105.0 105.9 109.5 122.4 from 1901 to 1920, 8 from 1921 to 1926, 9 from 1927 to 1941; 13 cities to 1927, 14 cities to 1930, there- tf l AO 2 5 trades from 1901 to 1926, 4 from 1927 to 1941. 2 2 trades from 1901 to 1920, 4 for 1921 and 1922, 2 for 1923 and 1924, 6 from 1925 to 1941. 4 2 classes from 1901 to 1923, 5 from 1924 to 1941; from 1901 to 1930, 13 cities; thereafter 35 6 23 classes. 6 4 classes 1901 to 1920; 12 classes 1921 to 1941. 7 Including some increases effected near the end of the year. 8 Including a 10-percent decrease for certain classes toward the end of the year. 8 Rates include cost-of-living bonus where reported. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis decreasing to 25. 141 Wage and Hour Statistics T able 1 . — Index Numbers of Rates of Wages for Various Classes of Labor in Canada, 1901 to 1941— Continued [1935-39=100] General average— Weight ed (ii) Miscel Logging laneous and saw factory milling trades 10 Metal mining Steam ships 55.7 57.1 58.4 59.4 61.5 62.9 63.3 61.2 59.7 60.3 48.3 48.5 48.3 48.9 49.2 40.1 42.1 43.6 44.5 45.4 63.6 65.2 63.9 67.2 69.3 64.2 63.4 64.4 65.0 64.2 50.0 51.1 52.4 53.1 53.2 47.3 48.8 49.9 50.9 52.5 47.7 48. 6 50.0 51.6 53.1 70.7 73.0 73.9 70.6 64.9 67.1 67.2 6 8 .0 6 8 .1 54.0 55.1 57.2 58.1 59.4 47.8 50.0 48.3 51.8 53.5 54.9 55.6 56.0 57.6 64.0 73.4 90.1 108.5 79.3 100.5 114.6 131.2 148.7 75.2 83.4 90.6 90.9 105.8 60.4 71.0 86.5 95.4 115.7 51.6 57.8 66.7 76.4 89.7 95.1 59.9 68.7 80.7 94.8 112.7 1921 _______ 1922 _______ 1923 - ______ _________ 1924 1925_______________________ 1 0 1 .1 112.9 92.6 107.1 116.2 107.8 97.9 90.5 94.5 94.6 95.9 105.6 95.4 100.7 99.2 99.4 99.0 99.9 101.3 94.6 89.9 91.3 91.8 91.9 102.7 95.9 98.6 99.8 98.8 1926 - ____ 1927 _________ 1928 - ______ _______ 1929 1930-..- ___________________ 98.4 99.7 100.5 108.4 109.5 110.9 110.5 109.2 95.8 95.9 95.8 96.4 96.5 99.2 100.4 1 0 1 .6 102. 5 103.3 103.5 103.7 92.5 94.2 96.0 97.1 97.6 99.4 101.5 102.7 104. 5 lOò. 2 1931 _______ 1932 ________ 1933 _______ 1934 _________ 1935_______________________ 98.7 92.2 87.9 90.3 92.2 92.6 76.7 95.2 92.2 91.1 93.4 95.2 102.3 95.1 89.3 103.2 100.7 98.6 97.7 98.2 97.9 91.3 90.6 96.6 95.9 101.7 94. 5 89.6 90.5 93.1 1936 - ________ 1937 ________ 1938 ___________ 1939 _____________ 1940 - - _________ 1941 8______________________ 94.4 101.9 105.2 106.0 90.5 104.6 97.6 101. 9 102.4 90.6 301.2 109.0 1 0 2 .8 1 1 0 .0 Year 1901 1902 1903 1904 1905 1 9 0 fi 1907 1908 1909 1910 1911 191? 1918 1914 1915 1910 1917 1918 1919 1920_____ _________________ 94.6 98.1 98.8 97.8 1 0 1 .1 1 0 1 .2 1 1 0 .6 122.5 6 6 .0 74.9 82.3 1 1 2 .0 110.5 114.2 125.6 6 8 .2 103.5 113.2 1 0 1 .1 105.7 106.9 8 8 .6 89.2 115.5 126.9 Laun dries 1 0 1 .6 100.7 Tele phones 98.7 96.7 94.8 1 0 0 .0 1 0 1 .6 1 0 2 .8 1 0 1 .8 101.4 101.7 103.1 1 1 0 .2 103.1 104.1 114.5 104.9 105. 3 108.4 119.2 s Rates include cost-of-living bonus where reported. . ,. . , , w The number of samples (and industries) increased from time to time since 1920; machine operators, heip°r i! Weighted* according to average number of workers in each group in 1921 and 1931 except metal mining where years 1921, 1931 and 1938 were used. Wage Rates and Hours in Metal Trades Rates of wages and hours of labor in various trades in certain cities are shown in the report under review for different pursuits, including the building, metal, and printing trades, and electrical street railways, for selected years from 1920 through 1941. The data on the metal trades are reproduced in table 2 for the years 1920, 1930, 1940, and 1941, as of particular interest owing to the wartime importance of metals. 501152— 43- 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 142 Monthly Labor Review—January 1943 T able 2.—Rates of ;es and Hours of Labor in the Metal Trades in Canada in Specified Years [Rates in foundries and machine shops and manufacturing establishments. When a range appears figures represent predominant rates. Rates include cost-of-living bonus where reported] B la c k s m ith s Machinists B o ile r m a k e r s Molders 1 L o c a lity W a g es per h o u r H o u rs p er w e e k W a g es p er h o u r H ours p er w e e k Wages per hour Hours per week Wages per hour 0.65 .60 .65 .65 44 -54 44 -50 40 -44 44 $0. 70 -0.80 . 70 - . 80 . 70 - . 85 . 725- . 85 Hours per week Nova Scotia H alifax: 1920____ $0 . 60 -0.80 1930____ .55 - .75 1940____ .60 - .90 1941____ .65 - .96 44 -54 44 -50 40 -44 44 $0.65 .55 .67 .73 -0. 765 48 -54 - .75 44 -50 - .90 40 -44 - .96 44 -0.85 - . 75 - . 90 - . 96 44 44 44 44 -48 -48 -48 -48 New Brunswick S a in t J oh n : 1920____ 1930____ 1940____ 1941____ .60 .55 .50 .65 - .65 .65 .65 .80 .50 .50 .58 .60 - .6 8 - .60 - .67 - .72 48 44 44 44 -54 -54 -45 -48 .60 .50 .55 .65 - .65 .80 .70 .80 54 45J-á— 50 44 44 .545. 45 .55 .60 - . 73 . 70 . 70 . 80 50 40 -55 44 -45 44 -48 . 51 .35 .50 . 50 - . 60 . 65 . 65 . 70 54 45 -50 44 -45 44 -54 49^-60 50 -54 48 -60 48 -54 .60 .40 - .65 .58 - .60 .60 - . 77 54 54 48 -60 48 -54 . 40 . 40 . 45 . 48 . 65 . 65 . 75 . 77 49J.á-60 50 -54 48 -60 48 -59 . 375. 335. 375. 375- . 58 . 57 . 58 . 67 48 -60 60 44 -60 48 -59 .735.50 .55 .65 - 47 47 40 44 . 55 - . 85 . 50 - . 85 . 50 - . 90 . 55 -1.00 44 60 44 -55 40 -60 44 -60 . 70 . 60 . 50 . 55 - . 875 . 88 . 90 . 95 45 44 44 44 -54 -49 -55 -55 50 44 -50 44 -50 44 -50 . 62 . 50 . 45 . 50 - . 70 . 68 . 70 . 75 50 44 40 44 -54 -50 -50 -50 Quebec Q u eb ec: 1920____ 1930____ 1940____ 1941____ M o n tr e a l: 1920____ 1930____ 1940........ 1941........ - .55 .525.50 .55 - .825 .75 .80 .85 45 44 40 44 .60 .45 .45 .50 - .70 .70 .65 .75 50 44 -50 44 -50 48 -58 .6 8 - .75 .55 - .75 .40 - .67 .45 - .85 48 -50 44 -50 44 44 -50 .48 . 50 . 50 . 55 .65 .55 .50 .55 - .8 6 - .75 - .80 - 85 48 44 44 44 -52 -54 -56 -60 .60 .60 .60 .70 44 44 44 44 -48 -48 -56 -50 . 55 - . 90 . 50 - . 80 . 50 - . 96 . 55 -1.05 44 44 44 44 -50 -54 -59 -60 . 70 . 50 . 55 . 59 - . 95 . 90 . 89 . 95 48 44 44 44 -50 -54 -55 -51 .50 .45 .50 .60 - 48 45 44 44 -55 -59 -59 -59 .53 .425.485.50 - 70 65 65 65 50 -60 50 59 59 . 50 - . 85 .40 - . 75 . 50 - . 90 . 55 -1. 06 44 44 44 44 -60 -59 -60 -59 . 50 - . 95 . 45 - . 80 . 50 - . 90 . 64 -1.02 48 40 44 44 -50 -54 -54 -54 63 49J4-50 . 6 6 - 75 60 44 -49 y2 .55 - 70 55 44 -55 .49 - 57 60 44 -55 .50 - 66 50 44 44 50 .65 .48 .45 . 50 . 87 . 75 . 66 . 77 50 44 -50 44 -45 49J4-55 -58 -55 -60 -60 .80 .78 .90 .96 -49^ -49 té -48 -48 Ontario O tta w a : 1920____ 1930........ 1940____ 1941____ T o ro n to : 1920........ 1930____ 1940____ 1941____ H a m ilto n : 1920____ 1930____ 1940____ 1941____ London: 1920........ 1930____ 1940........ 1941____ .475.50 .45 .50 - W in d so r: 1920____ 1930____ 1940____ 1941____ .67 .50 .60 . 65 80 65 75 79 - 90 - 66 - 93 -1.03 - 88 - .75 - 70 - 85 49J-S-50 49H 40 -50 40 -50 . 60 .45 .40 .45 - . 78 - . 70 - . 85 -1.08 - . 76 50 . 685 44 -50 . 60 44 -50 . 70 44 -55 - . 67 - . 90 . 60 - 1 .0 0 .55 -1.10 . 60 - 1 .2 0 44 -55 40 -55H 40 -60 49^ -5 0 .80 .60 - . 90 .60 - . 85 .60 - . 90 50 44 -55 40 -48 40 -54 . 60 . 50 .50 .55 48 44 40 44 .575.50 . 53 . 55 - 50 44 -50 40 -50 40 -50 Manitoba W in n ip e g : 1920____ .70 - 80 1930____ .40 - 77 1940........ .40 - 75 1941____ .45 - 80 1 Includes toolmakers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 44 -54 40 -50 44 -50 .65 .60 .55 .65 - 82 74 79 82 1 50 44 50 50 - . 80 . 75 . 80 . 85 -50 -50 -50 -50 . 80 . 80 . 70 . 77 143 Wage and Hour Statistics T able 2.—Rates of Wages and Hours of Labor in the Metal Trades in Canada in Specified Years— Continued Locality Wages per hour Machinists Boilermakers Blacksmiths Hours per week Wages per hour Hours per week Wages per hour Molders 1 Hours per week Wages per hour Hours per week Saskatchewan Regina: 1 Q20 1930___ 1940____ 1941____ $0.85 .60 - . 85 . 50 - . 90 .50 - . 96 44 48 -50 $0. 73 - . 85 0.90 40 -44 .96 44 $0. 90 . 66 - . 85 .55 - . 90 .55 - . 96 50 44 -48 40 -49 44 -49 $0. 78 50 48 -55 40 44 .45 - . 55 .45 - . 55 44 44 .85 . 70 . 65 . 70 - . 95 - . 85 - . 95 -1.01 44 44 -48 40 -44 40 -44 .85 .80 - . 90 .90 .96 44 48 40 40 .85 .63 - . 85 .50 - . 90 .50 - . 96 44 44 -48 40 -48 40 -48 .85 .75 - . 82 .60 - . 75 .69 - . 80 44: 44 44 44 .70 . 60 .50 .50 - . 80 . 85 . 80 . 80 44 44 44 44 .80 - . 85 44 -50 . 70 -1.00 . 60 - . 90 . 50 - . 70 . 52 - . 75 44 44 44 44 .70 .75 .65 .65 . 75 .65 .70 .75 - . 93 . 83 . 90 . 905 44 44 -48 40 -44 40 -44 .78 .75 .75 . 815- . 95 . 90 . 90 . 955 44 44 -48 40 -44 40 -44 . 75 . 75 . 70 . 80 - . 95 . 875 . 90 . 955 44 44 40 -48 40 -48 .75 . 75 . 70 .80 - . 905 . 875 . 80 . 94 44 44 44 -45 44 -45 .75 - . 90 .80 - . 84 .85 .905 44 44 44 44 . 775-1.00 .84 .90 .955 44 44 44 44 .825. 75 . 75 . 80 - . 85 . 82 . 79 . 955 44 44 44 44 .75 .75 .75 . 84 - . 87 . 81 . 86 . 955 44 44 44 44 Alberta Calgary: 1920____ 1930___ 1940____ 1941....... Edmonton: 1920____ loan 1940 1941 -50 -54 -50 -50 -50 -54 -50 -54 - . 875 - . 80 -2.70 -2.75 44 -50 -44 44 -49 45 -54 British Columbia Vancouver: 1920____ 1930____ 1940____ 1941____ Victoria: 1920 ___ 1930 ___ 1940 ___ 1941____ 1 Includes toolmakers. 2 Minimum rate approved under the Industrial Standard Act, 1935. Wages in Agriculture Average wages of farm workers in Canada, as estimated by crop correspondents of the Dominion Bureau of Statistics, are given in table 3 by Provinces for 1920, 1926, and 1929 through 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 144 Monthly Labor Review—January 1943 T able 3.— Average Wages of Farm Workers in Canada A s Estimated by Crop Correspondents of Dominion Bureau of Statistics 1 Males, per month in summer season Males, per year Females, per year Year Males, per month in summer season Males, per year Females, per year Wages Wages W ages Wages Wages Wages Wages Wages Wages Wages Wages Wages with with with with with with with with with with with with out board out board out out board out board board out board board board board board board board Canada 1920. 1926. 1929 1930. 1931. $60 41 40 34 25 $86 1932 1933 1934 1935. 1936. 19 17 18 1937. 1938. 1939.. 1940. 1941 Ontario 64 63 56 43 $543 384 373 326 240 $821 639 627 559 439 $275 242 242 176 161 171 184 206 341 322 338 358 374 120 112 20 21 34 32 33 35 37 23 24 24 28 36 40 41 40 41 51 224 230 245 275 353 400 405 424 456 559 $492 455 465 409 322 $52 37 35 31 25 $75 58 57 51 43 $474 349 341 304 237 $736 583 595 532 440 $259 232 242 229 180 $470 419 454 423 348 115 117 126 255 246 253 254 261 18 17 18 20 21 33 32 33 36 37 178 159 173 187 211 341 325 344 372 388 130 123 137 137 147 260 264 287 287 295 134 135 140 151 185 272 275 283 296 350 25 24 24 29 38 43 42 41 43 54 235 228 252 289 389 421 411 440 483 614 158 152 165 186 233 312 303 320 345 421 $559 438 438 398 296 210 159 Prince Edward Island 1920 1926 1929 1930. 1931. $42 31 34 32 25 $50 47 52 50 39 $371 294 327 308 250 $572 484 534 513 413 $212 1932. 1933. 1934. 1935. 1936. 18 18 17 18 18 30 30 30 31 31 164 178 167 188 190 305 319 320 343 351 106 116 no 1937. 1938.. 1939. 1940.. 1941 . 21 20 36 33 30 31 38 206 205 219 231 323 374 364 372 399 498 18 20 26 Manitoba $372 325 355 344 284 $70 38 38 32 $650 367 352 298 213 $975 614 608 536 410 $312 233 22 $98 60 61 53 39 17 15 16 17 19 32 29 31 32 34 164 143 149 160 178 337 307 312 323 336 101 126 225 237 231 247 262 89 92 92 103 249 229 233 232 235 125 130 128 132 158 252 260 259 268 305 21 37 39 37 40 51 202 22 221 367 373 398 409 500 113 116 124 134 168 249 250 267 276 328 $364 261 256 215 138 $853 498 496 427 312 230 240 238 180 196 179 153 122 23 27 37 Nova Scotia $49 35 38 34 27 $73 54 57 54 44 $472 350 383 353 269 $735 588 605 562 465 $218 194 1932. 1933. 1934 1935. 1936. 22 20 20 22 22 37 34 35 37 37 213 208 195 213 245 1937. 1938. 1939. 1940. 1941. 25 25 25 25 34 40 41 40 40 51 r 'i ä x i Ä https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 239 309 194 134 Saskatchewan 1920. 1926. 1929. 1930. 1931 - Ä 207 222 $72 43 44 37 23 $102 187 161 $408 369 391 344 316 377 365 360 364 415 135 129 124 128 136 261 248 253 245 260 18 16 16 18 19 33 31 31 33 35 158 144 153 173 188 324 305 319 345 346 98 85 89 96 105 262 169 271 299 414 435 439 452 472 631 145 145 143 142 194 272 277 271 265 352 19 22 22 35 37 38 42 50 184 203 218 243 307 344 363 381 407 497 106 113 t t a a . “ 212 “ 28 34 67 69 60 42 “Dd ,rom th* $667 $1,003 406 678 398 685 340 593 215 418 122 134 169 Ye,r B“ k; flsures 240 222 233 247 262 270 331 Wage and Hour Statistics 145 T able 3.—Average Wages of Farm Workers in Canada A s Estimated by Crop Correspondents of Dominion Bureau of Statistics—Continued Males, per month in summer season Males, per year Females, per year Males, per month in summer season Males, per year Females, per year Year Wages Wages Wages Wage Wages Wages Wages Wages Wages Wages Wages Wages with with with with with with with with with with with with out out out out out out board board board board board board board board board board board board Alberta New Brunswick $697 $1,038 422 701 678 404 342 598 232 447 $360 271 253 223 156 $638 520 485 445 345 185 170 178 189 206 367 344 350 367 378 120 109 113 115 125 279 261 263 271 271 221 401 418 431 475 573 131 137 143 157 193 282 289 295 315 369 $684 $1,033 452 767 482 792 450 741 358 633 $131 278 291 270 228 $742 532 562 512 456 1920________ 1926________ 1929________ 1930________ 1931________ $56 39 40 34 27 $79 57 60 54 43 $531 354 375 335 276 $785 529 589 550 460 $213 176 198 181 161 $391 319 367 345 304 $76 45 43 37 25 $107 69 1932________ 1933________ 1934________ 1935________ 1936________ 20 175 185 214 107 115 103 117 236 227 245 216 218 20 257 320 336 366 360 398 121 25 33 31 35 35 40 21 22 36 34 35 37 38 1937________ 1938________ 1939________ 1940 _______ 1941________ 28 26 25 32 39 44 41 39 44 52 295 280 293 353 441 442 432 439 518 625 133 128 143 151 162 248 247 264 284 304 23 25 25 30 38 40 43 42 46 57 237 251 288 364 18 22 21 210 19 19 68 60 44 British Columbia Quebec 57 61 52 41 $524 345 369 316 244 $767 547 577 510 406 $235 185 191 175 143 $407 326 342 314 261 $64 49 49 46 35 $95 76 76 72 58 18 17 18 18 19 30 28 30 31 32 158 152 164 170 196 284 265 293 306 332 104 94 96 98 106 202 187 192 196 206 25 23 24 26 25 44 42 43 45 46 250 234 240 242 265 467 446 462 465 494 168 152 162 160 166 348 332 349 347 358 25 24 24 24 32 40 38 39 37 47 226 247 243 288 351 376 398 398 453 539 121 122 232 235 240 262 308 28 28 28 30 35 49 50 49 46 57 279 284 285 314 373 513 522 525 551 627 170 170 172 183 216 363 365 370 379 429 1920________ 1926 _______ 1929 ______ 1930 _______ 1931________ $62 38 41 33 26 1932________ 1933________ 1934 _______ 1935 _______ 1936________ 1937 ______ 1938 ____ 1939 ______ 1940 ___ 1941 _______ $86 124 142 171 Average wages of male farm help, on both a daily and monthly basis appear in table 4 as of May 15, 1940, 1941, and 1942. The data are given with and without board. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 146 Monthly Labor Revieiv—January 1943 T able 4.—Average Wages of Male Farm Workers per D ay and per Month, as of M ay 15, 1940, 1941, and 1942 1 With board W ithout board Province 1940 1941 1942 1940 1941 1942 Wages per day Canada___________ Prince Edward Island______________ _ Nova Scotia____ _________ _ New Brunswick. _____ _ _ Quebec _ . __ Ontario___________ ___ M anitoba________ ____ Saskatchewan-. _ . Alberta______________ British Columbia.- ___ Canada________ ___________ Prince Edward Island ___________ Nova Scotia___________________ New Brunswick___ : _ ... Quebec____________________ Ontario__ ________ M a n ito b a .-.___ ____ _ Saskatchewan___________ - __ Alberta - ____ - _ . . British Columbia. _. . $1 .2 2 $1.48 $1.91 1 .0 1 1 .1 2 1 .2 1 1.56 1.79 1.98 $1.76 $2 . 06 $2. 57 1.52 1.65 1.63 1 .6 6 1.54 2.18 1.89 1.82 1.69 1 .8 6 1. 75 2. 03 1.93 2. 09 2. 33 Wages per month 1.70 1.95 1.94 1.84 2.35 1.84 1.99 2 . 20 2. 48 2.08 2.46 2.59 2.26 2. 89 2. 50 2. 49 2.79 2. 92 1.31 1. 50 1.38 1.44 1.31 1. 75 1.32 1.39 1.54 1.65 $26. 02 $31. 90 $42. 49 $39. 26 $46. 45 $58.80 2 1 .2 1 24. 88 25.19 30. 57 33.20 28.67 34.84 30.24 31.17 35.42 29. 97 35.00 42. 38 43.48 38.24 44. 08 42. 01 42.83 46. 38 44.09 31.33 38. 57 38. 88 35. 06 40. 21 39.14 39.75 44. 94 46.68 39.64 43. 96 45. 06 41.80 50.03 43. 64 45. 00 52.18 50. 46 49. 64 61.06 57.73 54.44 59.91 57.71 58. 59 67. 19 6 8 . 57 1.16 1.08 1. 34 1.14 1 .2 1 27.14 23. 53 26. 09 25. 43 26. 61 29. 03 27.00 i Reproduced from a report on “ Farm Wages in Canada” issued July 2 , 1942, by the Dominion Bureau of Statistics. Statistics of Coal Mines Average daily wages, number of days worked, and number of wage earners in coal mines are shown in table 5 by mining districts for 1921 to 1940, inclusive. T able 5.—Average Wages Per Day, Average Number of Days Worked Per Man Per Year, and Average Number of Wage Earners, 1921-40 1 [Dominion Bureau of Statistics: Annual Reports on Coal Statistics for Canada] Year Canada Nova Scotia 2 New Brunswick Saskatch ewan Alberta British Columbia Average wage per man per day 1921____ . 1922______ 1923_________ 1924____________ 1925____________ $6 . 20 5.18 5. 57 5. 62 5. 51 $5. 06 4. 07 4. 35 4. 93 5. 73 $5.17 3. 78 4. 54 4.50 3. 21 $5.93 4.12 4. 53 4. 51 4. 26 $7. 63 6 . 42 7.41 6.74 5. 97 1 $6 . 37 1926______ 1927-............ -, 1928_________ 1929______ 1930___________ 4. 97 5.03 5. 57 5.49 5.47 4.69 4.81 5.83 5. 52 5.62 3.18 3. 58 3. 55 3.83 3.82 4. 52 4. 42 4.72 4. 21 4.15 5. 56 5.57 5.79 5. 94 5.68 4.91 4. 94 4. 89 4. 92 5.04 1931_______ 1932 3____ 1933 3__ 1934 3 1935 3 ____ 5. 28 4. 90 4. 11 4.38 4.46 5. 49 5. 08 4. 30 4. 29 4. 39 3.78 3. 27 3. 36 2 . 86 2. 75 3.83 3.19 3.01 3.07 3.09 5. 35 5. 05 4. 83 4.84 4.97 4. 94 4. 83 4. 68 4.69 4.62 1936 3--1937 3 _______ 1938 3 ____ 1939 3 .......................... 1940 3__________ 4. 57 4.76 4.85 4.91 4.95 4. 55 4.79 4. 92 4. 93 4. 96 2 .8 6 3.08 3.00 3.13 3.25 3.56 5.05 5. 19 5. 27 5.37 5.49 4.63 4. 81 4.74 5.10 4.95 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2.90 3. 16 3. 05 3.17 5.81 5. 85 5. 76 4. 99 147 Wage and Hour Statistics T able 5.—Average Wages Per Day, Average Number of Days Worked Per Man Per Year, and Average Number of Wage Earners, 1921—40 1— Continued Year Canada Nova Scotia 2 New Brunswick Saskatch ewan Alberta British Columbia Average number of wage earners (12 months) 449 611 612 608 614 435 460 505 519 517 13,317 13, 333 12, 760 13,376 544 558 585 578 584 26, 489 25, 597 24, 812 24, 671 24,831 13, 388 12, 623 11 , 861 12, 051 12, 674 25, 597 25, 890 25, 767 25, 200 25,128 12, 848 13, 268 13, 592 13, 035 12, 949 12 , 626 1921______________________ 1922______________________ 1923______________________ 1924______________________ 1925______________________ 30, 223 ' 30,096 30, 300 25, 708 23, 490 1926______________________ 1927__________ ________ _ 1928______________________ 1929______________________ 1930______________________ 26, 878 28, 357 28, 754 28, 227 27, 704 1 2 ,1 0 0 1931______________________ 1932______________________ 1933______________________ 1934______________________ 1935______________________ 1936______________________ 1937______________________ 1938______________________ 1939______________________ 1940______________________ 14, 068 13, 385 12, 500 4 8 , 333 10, 019 4 8 , 815 i 6 , 694 4 6,140 8 ,6 8 6 5, 879 916 5, 336 470 509 509 561 529 8 , 667 8,932 9, 280 9, 534 8,849 5,095 5,038 5, 043 4, 791 4,363 608 709 1, 025 1,035 1,136 538 748 891 882 813 8,024 7,824 7, 971 7, 839 7,662 3, 890 3, 684 3, 050 2,849 2,531 1,158 1,050 847 874 841 667 649 8 , 054 2,639 2,874 2,833 2 , 826 2, 783 1 ,1 2 0 1,284 1, 406 9, 917 4 7, 163 7,813 7, 374 7, 384 7,337 4 4, Average number of days worked per man per year 224 207 245 269 213 272 190 228 231 214 214 217 237 227 228 244 251 249 252 219 247 245 243 266 228 249 285 266 245 230 214 214 197 225 205 230 244 243 232 1931______________________ 1932______________________ 1933______________________ 1934______________________ 1935______________________ 185 177 182 214 216 182 155 170 233 217 196 219 250 229 231 196 219 216 171 189 179 182 207 1936______________________ 1937______________________ 1938______________________ 1939______________________ 1940______________________ 225 235 208 228 252 227 247 204 231 263 232 244 210 230 230 232 246 235 1921...______ _____________ 1922______________________ 1923______________________ 1924______________________ 1925______________________ 228 229 250 231 1926______________________ 1927______________________ 1928______________________ 1929______________________ 1930______________________ 221 230 210 263 202 257 274 201 206 212 200 209 207 202 208 228 1 246 258 261 260 271 261 278 281 258 232 218 212 202 217 241 260 258 229 246 257 1 Figures for the Yukon Territory were included under British Columbia in 1921, but have been compiled separately since. For several years 2 to 4 miners were employed from 50 to 100 days, wages averaging about $8.00 per day; in 1939 and 1940 no coal was mined. In Manitoba mining operations began in 1931, small numbers being employed, 4 in 1940, averaging $2.40 per day. 2 Prior to 1933 the figures for Nova Scotia included certain employees handling coal at a distance from the mine. 3 Figures calculated by dividing number of man-days worked into total wages paid. 4 Prolonged dispute during year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Regulation DELEGATION OF WAGE-APPROVAL POWER BY WAR LABOR BOARD IN a series of orders, the National War Labor Board announced a considerable decentralization of its authority to make wage and salary adjustments. Thus, field offices of the Wage and Hour Division are authorized to make final rulings, except in unusual circumstances, as to whether a rate for a new job classification exceeds that paid for similar classifications. Impartial chairmen, arbitrators, or umpires are authorized to fix rates for new jobs without prior approval of the Board, provided they have that duty under bona fide collective bargaining contracts. Employers are authorized to make adjust ments to equalize wages of women with those of men for comparable quality and quantity of work. In addition, the Board delegated to the War Department the power to rule upon wage and salary adjustments for civilian employees of the Government employed in this country and Alaska by the War Department, the Army Exchange Services, and Government-owned but privately operated facilities of the War Department. Control of N ew Job Classifications The policy of the Board with respect to the stabilization of hiring rates is to be enforced by field offices of the Wage and Hour Division. These offices are authorized to make final rulings, except in unusual cases, on the question of whether a new job classification in an existing plant is fixed “ at a level not exceeding that which prevails for similar classifications within the area/’ and does not, therefore, need Board approval. Where the job rates are being established in a new plant, or where the case involves the establishment of a new department of considerable size in an existing plant, the application for approval must be submitted by the Wage and Hour office to the proper regional director of the Board. Adjustment of Job Rates The Board, in two general orders, authorized impartial chairmen, umpires, or arbitrators to establish new job rates, and employers to equalize rates for men and women. Such adjustments will furnish no basis for increases in price ceilings. The rates established by chair men, umpires, or arbitrators must be in balance with established rates for other jobs covered by the applicable collective-bargaining agreement. Both these rates and equalizing adjustments made by employers are subject to review by the Board. 148 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Regulation 149 Wage Adjustments by War Department In another order, the War Labor Board delegated to the Secretary of War the power to rule upon wage and salary adjustments for civilian employees of the War Department. This power is to be exercised through the Wage Administration Section of the Civilian Personnel Division, Headquarters, Services and Supply. An appeals committee consisting of members appointed by the Personnel Division and the War Labor Board will handle appeals from the decisions of the Wage Administration Section. Any ruling of the committee is subject to the Board’s ultimate power of review. The authority of the Wage Administration Section to rule upon applications for wage and salary adjustments covers all civilian employees within the continental limits of the United States and Alaska, employed by (1) the War Department, (2) the Army Ex change Service, and (3) Government-owned, privately operated, facilities of the W7ar Department. However, the authority of the Wage Administration Section extends only to wage and salary ad justments over which the War Labor Board has jurisdiction. Exemption of Small Employers Under a previous order of the Board, employers of eight or more workers were exempted from Board approval of wage and salary adjustments. In further defining such exemptions, the Board stated that the time to determine the total number of employees for the purpose of the exemption is when the employer puts an adjustment into effect or agrees to it. N o employer may make adjustments under the exemption for more than a total of eight employees in the year following October 3, 1942, in the case of wages, or October 27, 1942, in the case of salaries. SALARY REGULATIONS OF COMMISSIONER OF INTERNAL REVENUE THE Commissioner of Internal Revenue recently issued regulations applicable to all salaries over which he has jurisdiction under regula tions previously issued by the Director of Economic Stabilization.1 In most instances, the regulations parallel the rules established by the War Labor Board for the control of wages and those salaries over which it has jurisdiction.2 The regulations of the Commissioner broadly define the term “ salary” to include all forms of direct or indirect compensation for the personal services of an employee which is computed on a weekly, monthly, annual, or other basis, other than wages. Bonuses, gifts, loans, commissions, fees, and other additional compensation or re muneration are also considered as “ salary.” The relationship of employer and employee is considered to exist when the person for whom services are performed has the right to control and direct the individual performing the services, both as to the results to be ac complished and the means to be employed. 1 See M onthly Labor 2 Idem, p. 1144. Review, December 1942, p. 1142. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 150 Monthly Labor Review—January 1943 Jurisdiction of Commissioner The jurisdiction of the Commissioner is confined to salary pay ments in excess of $5,000 per year, in the case of individuals employed in any capacity whatsoever, and to salary payments of $5,000 or less, in the case of individuals (a) who are employed in a bona fide ex ecutive, administrative, or professional capacity, (b) who in their relations with their employer are not represented by a duly recognized or certified labor organization, and (c) whose services are not those of agricultural laborers. Other salary payments are subject either to the War Labor Board or to the Secretary of Agriculture, as pre scribed in the General Kegulations of the Director of Economic Stabilization. Changes in Salaries and Other Payments Salary increases.—Any increase not otherwise exempt in a salary rate of $5,000 or less existing on October 27, 1942, or established thereafter in compliance with the regulations,’or a salary above $5,000 existing on October 3, 1942, or established thereafter under the reg ulations, may not be granted without the approval of the Commis sioner. The burden of justifying an increase in salary rate in every instance is upon the employer seeking to make such an increase. Increases in salary rates will not be approved unless necessary to correct maladjustments or inequalities, or to aid in the effective prosecution of the war. Payment for overtime will constitute an increase in salary rate, and thus will require the approval of the Commissioner, unless^ the customary practice of the employer has been to pay for overtime, and the rate has not been changed. The Commissioner’s approval is not required where an increase in salary rate is made in accordance with the terms of a salary agree ment or salary rate schedule in effect on October 3, 1942, or approved thereafter by the Commissioner, and is a result of— (1) Individual promotions or reclassifications, (2) Individual merit increases within established salary rate changes, (3) Operation of an established plan of salary increases based on length of service, (4) Increased productivity under incentive plans, (5) Operation of a trainee system, or (6) Such other reasons or circumstances as may be prescribed in rulings or regulations promulgated by the Commissioner from time to time. The term “salary agreement” or “salary rate schedule” may include a salary policy in effect on October 3, 1942, even though not evidenced by written contracts or written rate schedules. The burden of proving the existence of such a policy, however, rests upon the employer, al though it may be established by previous pay-roll records or other pay-roll data. New job classifications.—An employer who has established a new job classification or who began business after October 3, 1942, must obtain the approval of the Commissioner for the payment of salaries for such job classification or in such new business. However, if the salary rates in question are not in excess of those prevailing for similar https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Regulation 151 classifications within the local area, the approval of the Commissioner is not required. Any change in a salary rate, regardless of its effective date, which results from an award or decision of an arbitrator or referee made after October 3, 1942, in the case of salaries of more than $5,000, and after October 27 in the case of salaries of $5,000 or less, must be approved by the Commissioner. Control oj bonus 'payments.—Bonus payments may be made without the prior approval of the Commissioner under the following conditions: (1) If the amount to be paid is not greater than the amount paid to the same employee or an employee occupying the same position in the previous bonus year. (2) If the employer had entered into an enforceable contract with the employee before October 3, 1942, to pay him in 1942 (a) a bonus of a specified amount or (b) a bonus calculated in a specified manner, the amount of which was determinable on or before October 3, 1942. (3) If it has been the settled policy of the employer for at least 2 years to pay bonuses calculated on a fixed percentage of the salary of each of the employees of any group, provided the fixed percentage is not increased. An increase in the amount of any employee’s bonus due to an increase in his salary during the past year, without any change in the percentage, will not be in violation of this rule. (4) If the bonus or other additional compensation is based on a fixed percentage of an employee’s individual sales, provided the rate of such payment was fixed before October 3, 1942. Salary decreases.—In the case of salaries of less than $5,000 per year, the general rule is that no decrease can be made by the employer in such salary rate below the highest salary rate paid for such work in the local area between January 1, 1942, and September 15, 1942. A decrease is permitted, however, with the approval of the Commis sioner, in order to correct a gross inequity in any case or to aid in the effective prosecution of the war. The approval of the Commis sioner is not required in the following cases where salary decreases are made after October 3, 1942: (1) The new salary rate does not fall below the highest salary rate existing between January 1, 1942, and September 15, 1942, for the particular work in question or for the same or comparable work in the local area. (2) An employee has been demoted to a lower position than that filled by him between January 1, 1942, and September 15, 1942, and the salary rate for such lower position is not less than the highest salary rate existing for that position during the same period. (3) An employee has been relieved of substantial duties and re sponsibilities. In the case of a salary rate existing as of October 3, 1942, or estab lished thereafter in compliance with the regulations, under which an employee is paid a salary of more than $5,000, the employer is per mitted to make, without the approval of the Commissioner, a decrease to a rate of not less than $5,000 per year. Limitation on certain salaries.—Under the General Regulations of the Director of Economic Stabilization, no amount of salary may be paid which, after allowance for Federal income taxes, would exceed $25,000 per year. Additional allowances of salary, however, are permitted in certain cases. In order to put this limitation in effect, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 152 Monthly Labor Review—January 1943 the regulations of the Commissioner provide for a gross salary limit of $67,200, the amount necessary to yield a net income of $25,000 under the 1943 tax laws if no credits or deductions of any kind are taken. The regulations also provided, however, that salary payments in excess of the basic ceiling may be allowed (1) to maintain customary charitable contributions; (2) to meet payments for insurance pre miums and fixed obligations contracted prior to October 3, 1942; (3) to meet payments on Federal taxes for prior taxable years; and (4) to compensate for expenses paid or incurred by the employee which are ordinary and necessary in the performance of his job. Procedure for P a y Adjustments To obtain approval of a proposed increase in salary, the employer is required to file an application with the regional office of the Bureau of Internal Revenue’s Salary Stabilization Unit in whose territorial jurisdiction his main office or principal place of business is located. The proposed increase must be justified either on the ground that it is necessary to correct maladjustments or inequalities or to aid in the prosecution of the war. Where approval is required for a decrease in salary, a similar application must be filed. Exemptions from Regulations Employers of 8 or less individuals are exempt from the regulations. The exemption has no effect, however, if it is subsequently deter mined that the employer temporarily reduced the number of employ ees below eight for the purpose of claiming the exemption. Salaries whose amounts are fixed by statutes of Federal, State, or territorial governments are also exempt. In addition, salaries paid to employees for services rendered exclusively in foreign countries are not covered by the regulations. Enforcement and Review In case of violations of the regulations, the entire amount of the salary payment, not merely the unauthorized adjustment, will be dis regarded in determining the employer’s costs for the purposes of any Federal law or any contract made by or on behalf of the United States. Furthermore, the entire amount of the salary payment will be dis regarded in determining the employer’s deductions under the Federal revenue laws. If the violation is willful, the employer, employee, or both, are subject to a fine of not more than $1,000, or imprisonment for not more than 1 year, or both. Determinations of the Commissioner are final and not subject to review by the Tax Court or any other court in civil proceedings. However, the regulations stipulate that employers have the right to contest in the courts (1) any provision of the regulations on the ground that it is not authorized by law, or (2) any action taken or determination made under the regulations on the ground that such action or determination is not authorized in the manner required bv law. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Regulation 153 M IN IM U M -W A G E RATES IN M EX IC O , 1942 AND 1943 MINIMUM-WAGE rates in Mexico, fixed by special commissions in the various municipalities, for the years 1942 and 1943, and approved by the Central Boards of Conciliation and Arbitration in 1942,1 vary from 0.75 peso 2 per day in Chiapas to 5 pesos in the northern district of Lower California, the same as in 1940 and 1941. For 1938 and 1939 the lowest rate was 0.75 peso in Jalisco, and the highest 4.50 pesos in the northern district of Lower California; for 1936 and 1937 the lowest was 0.75 peso in 5 States, and the highest 4.50 pesos in the northern district of Lower California. For 1942 and 1943, as for 1940 and 1941, a general rate was established for all types of work in the State of Jalisco and in the Territory of Quintana Roo, although this wage varied from one municipality to another in Jalisco. In three municipalities of Colima the minimum wage in the salt works consists of a specified amount of money and a share in the salt. In all the municipalities of Tlaxcala, the minimum-wage rates fixed for 1942 and 1943 are to be augmented by 16% percent, as payment for the seventh day of the week; throughout this State, bakery workers receive 15 percent of the bread they make. The minimum wage fixed for field workers in the Federal District for 1942 and 1943 is applicable to persons to whom the employer furnishes certain pay ments in kind which reduce their cost of living. The greatest number of m.inim.um-wage rates fixed, according to type of work, for 1942 and 1943 is 11 in Oaxaca, as in 1940 and 1941, and 10 in Sinaloa as compared with 8 in 1940 and 1941. For 1938 and 1939 the greatest number was 9 in Sinaloa, and for 1936 and 1937, 11 in Sinaloa and the southern district of Lower California. The accompanying table shows for the various political divisions of Mexico, the number of types of work for which wages were fixed for 1942 and 1943, with the lowest and highest minimum-wage rates for each division, and comparable figures for 1940 and 1941. The rates for 1942 and 1943 represent an increase over those for 1940 and 1941 in the lowest minimum wage in 5 governmental di visions, varying from 10 centavos in Jalisco and Nayarit to 25 centavos in the southern district of Lower California and Oaxaca; and an increase in the highest rate in 6 divisions, varying from 15 centavos in Jalisco to 50 centavos in Guerrero. No decreases were shown in the lowest wages, but in the highest rate a decrease of 10 centavos was shown for the southern district of Lower California and of 25 centavos in Zacatecas. Both lowest and highest minimum-wage rates remained at the same level in 22 governmental divisions for 1942 and 1943 as for 1940 and 1941; in addition to these, the lowest rates remained the same in Coahuila, Guerrero, Michoacán, Sonora, and Zacatecas, and the highest rates remained the same in Oaxaca and Tlaxcala. In 3 governmental divisions some change was shown in both the lowest and the highest rates. 1 Salarios minimos aprobados para los municipios de las entidades de la República por las Juntas Cen trales de Conciliación y Arbitraje respectivas y que regirán durante los años de 1942 y 1943. México, D. F., Secretaría del Trabajo y Previsión Social, Dirección de Previsión Social, 1942 (mimeographed). For back ground and analysis of rates for 1940 and 1941, see Bureau of Labor Statistics Serial No. R. 1339, Labor Condi tions in Latin America, No. 9, pp. 14-16; for 1938 and 1939, see Bureau of Labor Statistics Serial No. R. 897; Wages in Mexico, 1937 and 1938; for description of the Mexican plan for fixing minimum wages and the rates for 1936 and 1937, see Bulletin of the Pan American Union (Washington), July 1938. 2 Average exchange rate of peso (100 centavos) in 1942= about 20.5 cents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 154 Monthly Labor Review—January 1943 Minimum D aily Wage Rates Fixed in Mexico for 1940 and 1941 and for 1942 and 1943 1940 and 1941 Governmental division Aguascalientes_____________ Baja California, D. N _____ _ Baja California, D. S_______ Campeche___ _________ Chiapas____ ___ ___ Chihuahua______ ____ _ Coahuila ________________ C olim a... ______________ Durango__ ______ _ __ Federal District___. . . . Guanajuato_______ _______ Guerrero______ Hidalgo__ _____________ Jalisco____________ . . . . _ México_________ . _ Michoacán_____ _____ Morelos____________ . . . . Nayarit _ ______________ Nuevo León______ _____ O axaca____________ Puebla. __________ ____ Queréfaro_________ ____ Quintana Roo____ .. . San Luis Potosí______ . . . Sinaloa__________ ___ Sonora_____________ __ Tabasco_______ ____ Tamaulipas_____ ____ ___ Tlaxcala_____ ____ _____ Veracruz___ ________ . Yucatán_______ . . . Zacatecas___ ____ _____ Number of types of work for which wages were fixed 5 2 8 3 4 3 2 i3 4 22 4 3 3 1 4 3 3 6 2 11 2 4 1 4 8 3 2 3 37 3 3 3 1942 and 1943 Minimum wage Lowest Pesos 1.50 4.00 1.50 2.00 .75 1.50 1.20 1.15 1.00 1.65 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.10 1.00 1.00 1.30 1.00 3.00 1.10 1.25 1.50 1.50 1.10 .85 1.65 1.50 1.00 Highest Pesos 2.00 5.00 3.20 3.00 2.50 3.50 2.50 2.00 3.00 2.50 1.85 2.00 2.25 1.85 1.75 1.25 2.00 2.00 2.50 2.50 2.10 1.50 3.00 2.25 3.00 4.00 2.50 3.75 2.00 3.55 3.50 2.00 Number of types of work for which wages were fixed 5 2 8 3 4 3 2 i3 5 22 4 3 3 1 4 3 3 5 2 11 2 2 1 4 10 3 2 3 34 3 2 2 Minimum wage Lowest Pesos 1.50 4.00 1.75 2.00 .75 1.50 1.20 1.15 1.00 1.65 1.00 1.00 1.00 1.10 1.00 1.00 1.00 1.20 1.00 1.25 1.30 1.00 3.00 1.10 1.25 1.50 1. 50 1.10 1.00 1.65 1.50 1.00 Highest Pesos 2 no on 3.10 3.00 2.50 3.50 2.75 2.00 3 on 2 50 1.85 2. 50 2.25 2 00 1 75 1. 50 2.00 2. 25 2. 50 2.50 2.10 1 50 8 00 2.25 3.00 5 4 .2 5 2. 50 3 .7 5 2.00 3. 55 3. 50 1.75 1 For laborers in the salt works in 3 municipalities, a share of the salt is added. 2 The minimum wage fixed for field workers in the Federal District is applicable to persons to whom the employer furnishes certain payments in kind. 8 All rates given are to be increased by 16% percent. Rates fo r Various Industries and Regions In 29 of the 32 political divisions of Mexico, special minimum wages were fixed for field work, ranging from 75 centavos in Chiapas to 3.25 pesos in Sonora and 4.50 pesos in the northern district of Lower California; in all instances in Oaxaca the wages for field work were included with other classes of work. In 22 political divisions special wage rates were designated for city workers as such, ranging from 1 peso in Chiapas and Queretaro to 4.25 pesos in Sonora and 5 pesos in the northern district of Lower California; in Oaxaca, as in the case of field workers, city workers were not specifically designated as a group. In 6 divisions separate wages were established in mining, varying from 1.50 pesos in Sinaloa to 3 pesos in Sinaloa and Durango; for the southern district of Lower California, where the highest minimum-wage rate in mining was established in 1940 and 1941, mining was included with other groups and the rate set was 2.60 pesos. Workers designated as unskilled or unclassified in 4 States were assigned wages varying from 1 peso in Morelos to 1.75 pesos m Morelos and Oaxaca; and skilled or classified workers, in 6 States, varying from 1.25 pesos in Guanajuato to 2 pesos‘in Aguascalientes, Morelos, Oaxaca, and Tlaxcala (with a supplement, for Tlaxcala, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Regulation 155 of 16% percent). Seven States fixed rates of 1.25 to 3.55 pesos for industry, though in the southern district of Lower California, Miclioacan, and Sinaloa, industrial wages were included with other classes of work; 4 States, 1.25 to 2.75 pesos in commerce, but in the southern district of Lower California and Michoacim commerce was included with other types of work; and 2 States (Nayarit and Sinaloa), 1.50 to 2 pesos for fishing. In the southern district of Lower Cali fornia the minimum wages fixed for laborers in the salt works, either classified separately or included with other groups, varied from 2.50 to 3 pesos; other special rates were set for specified groups of workers. In Oaxaca, specific rates set for cultivation of sugarcane range from 1.75 to 1.90 pesos, and for cultivation of pineapple, 2.15 pesos; other special groups, as those engaged in the cultivation of different kinds of bananas, etc., were protected by special rates. Coffee workers in Chiapas were to receive a minimum of 1.30 pesos; and sawyers, 2 pesos in Durango. Wages for sugar factory workers in Sinaloa were set at from 1.50 to 1.75 pesos, and for certain crafts men, at 2 pesos; other rates were set for other types of work. With the exception of the localities or the classes of work indicated above the rates covered workers in general. Specified minimum-wage rates in mining were established in 6 States for 1942 and 1943, as against 8 States for 1940 and 1941, though the rates do not vary greatly. For 1942 and 1943, 6 States named wages for skilled or classified workers, as against 5 States in the preceding biennium. The number of States wherein minima were set in industry increased from 4 to 7, but with no increase in the extremes of rates set. In 10 States, the Federal District, and the Territory of Quintana Roo, no changes were made in minimum-wage rates from the preceding biennium, and in all other instances changes in highest and lowest rates were small. PAY INCREASES IN PARAGUAY, 1942 1 A DECREE-LAW (No. 15011) promulgated in Paraguay on October 8, 1942, provides for pay increases for salaried and wage-earning employees in industry and commerce, in order to enable them to meet the increased cost of living. The increases are based upon the rate of pay received on January 1, 1938, and are effective from October 15, 1942, as follows: Percent Pay classes From 1 to 6,000 pesos__________________________________ 6.001 to 10,000 pesos___________________________________ 10.001 to 25,000 pesos__________________________________ 25.001 to 40,000 pesos__________________________________ in pay 40 30 15 5 Persons engaged on job work shall have the same proportional in creases as above. Pay increases granted since January 1, 1938, are to be counted as part of the increases shown above; however, where the increases, made voluntarily or because of arbitral award, have exceeded these per centages they are not to be diminished because of the present decree. Employers who have not increased the pay of their employees since 1 D a ta are from report of E d m u n d B . M on tgom ery, first secretary of U n ited S tates E m b a ssy at A suncion https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 156 Monthly Labor Review—January 1943 January 1, 1938, are to provide 50 percent of the increase allowed in this legislation on the effective date of the decree-law (October 15), 25 percent more in 3 months, and the remaining 25 percent in 6 months. Employers who have made some increases are to complete their compliance with this legislation within 3 months. The administration of the present decree-law is entrusted to the National Labor Bureau, and fines are prescribed for violations by employers. The Bureau is authorized to settle the questions arising from the application of this increased wage scale, and to propose to the Executive Authority diminution or exemption from these in creases for industrial and commercial establishments not able to meet the additional burden, upon proof before the Bureau within 30 days from date of publication of the decree-law. Salaried and wage earning employees of enterprises performing activities of the same kind are to receive the same increases. The Executive Authority is authorized to create a commission whose duty it will be to prepare a bill dealing with the minimum wage. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor Turn-over LABOR TU RN -O Y ER IN M A N U FA CTU RIN G IN D U S T R IE S, OCTOBER 1942 FROM a September peak of 5.19 per 100 workers, the quit rate for all manufacturing industries combined declined to 4.65. The decline is seasonal as September rates are always high because of the reopen ing of school. The rate in October 1941 was 2.11. As a result of increased military separations, the miscellaneous separation rate in creased from 1.79 in September to 2.03 in October; consequently the total separation rate continued at a high level—7.91 per 100 workers, only slightly lower than the September rate of 8.10. T a b l e 1 — Monthly Labor Turn-over Rates (per 100 Employees) of Factory Workers in Representative Establishments in 135 Industries 1 Class of turn-over and year Jan F eb M arch April M ay uary ruary Separations: Quits: 1942 ........................ 2.36 1.31 1941.................. .. D ischarges: .30 1942 . . ______ .18 1941._____ ______ L ay-offs: 2 1942 _____ 1.61 1941_____________ 1.61 M iscellaneous separa tio n s:3 .83 1942 . .31 1941_____________ Total: 1942 . _______ 1941_____________ T o ta l: 1942 ___ 1941_____________ Ju ly A u gust Sep tem ber N o D e Octo v em cem ber ber ber 2. 41 1.33 3.02 1.70 3. 59 2. 08 3. 77 2.20 3.85 2.06 4.02 2.25 4.31 2.46 5.19 2.81 4.65 2.11 1.57 1.75 .29 .19 .33 .21 .35 .25 .38 .24 .38 .26 .43 .29 .42 .30 .44 .31 .45 .28 .24 . 29 1.05 1.40 .87 1.13 .68 1.16 .78 1.41 1.44 .26 . 52 3. 51 Th .94 1.39 1.20 1.19 1.06 1.31 1.19 1.43 1.08 1.21 1.03 .73 .43 .82 .43 .87 .37 .96 .34 1.02 .36 1.23 * .30 1.46 .25 1.79 .25 2. 03 .33 5.10 3.41 4.82 3.15 5. 36 3.40 6.12 3.89 6.54 3.86 6. 46 3. 71 6.73 4.24 7.06 4.14 8.10 4. 53 7.91 4.13 1.45 1 02 1.08 1 18 1.24 1. 11 1.04 1.07 .92 1.12 .90 1.09 1.04 1.12 1.11 1.08 .87 .85 .86 .79 6.22 5.03 7.13 5. 41 7.19 4.96 6.78 4.32 8.07 4.29 7.84 4.01 3.12 7.29 5. 95 8.25 6. 31 8. 28 6.00 7.90 5. 43 9.15 5.16 8. 69 4.87 3.91 Ascessions: Rehirings: 1941_____________ N ew hirings: 1942 ____ 1941_____________ June 5. 46 4.09 4.99 3.84 5.81 4. 38 6.01 5.00 6.87 5. 54 6.02 4.92 6. 99 5.62 7.12 6.04 — 2.15 3. 82 4. 76 1Turn-over rates are not comparable to the employment and pay-roll reports issued monthly by the Bureau of Labor Statistics, as the former are based on data for the entire month, while the latter refer only to the pay period ending nearest the middle of the month. In addition, certain seasonal industries, such as canning and preserving, are not covered by the labor turn-over survey and the sample is not as extensive as that of the employment survey, which includes.a larger number of small plants. 2 Including temporary, indeterminate, and permanent lay-offs, s Military separations included. Although the quit rate decreased in almost all of the 11 war indus tries, rates in excess of 5 per 100 workers were reported in October for 501152— 43-------11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 157 C coa LABOR TURN-OVER RATES IN REPRESENTATIVE FACTORIES RATE RATE Monthly Labor Review—January 1943 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PER 100 ON THE PAY ROLL 159 Labor Turn-over shipbuilding (5.39), aluminum and magnesium products (5.27), brass, bronze, and copper products (5.17), and foundries and machine shops (5.15). Of the 42 industries for which complete turn-over data are released, only 8 reported increased quit rates in October. Quit rates in excess of 7 per 100 workers were reported for slaughtering and meat packing (8.65), rubber boots and shoes (8.56), planing mills (7.50), furniture (7.22), stamped and enameled ware (7.18), and flour (7.15). How ever, in each of these industries (except rubber boots and shoes) the October rates represented decreases from September. The October labor turn-over data are based on reports received by the Bureau of Labor Statistics from approximately 8,400 manufactur ing establishments employing more than 4,800,000 factory wage earners. Table 1 shows the monthly turn-over rates for all 135 industries combined, and table 2 presents data for the separate indus tries in which sizable numbers of reports are received from employers and for which the release of the data is not restricted. Table 3 shows only the quit rates for each of 11 selected war industries for which the publication of other turn-over data has been restricted for mditary reasons. T able 2 —Monthly Turn-over Rates (per 100 Employees) of Factory Workers in 42 Manufacturing Industries 1 Accession rates Separation rates Date Industry Quit A g r ic u lt u r a l im p le m e n t s __ Automobiles and bodies______ Automobile parts and equipm ent ______ __________ Blast furnaces, steel works and r o llin g mills. ___ _______ Boots and shoes......................... Boxes, paper....... ......................... Brick, tile, and terra co tta........ Cast-iron pipe..................... ........ 4.82 5.09 2.29 .81 .75 .37 1.18 .84 Oct. Sept. Oct. Oct. Sept. Oct. Oct. Sept. Oct. Oct. Sept. Oct. Oct. Sept. Oct. 3. 33 3.60 1.36 5.68 5.81 1.77 6.78 8.15 3.04 5.80 6 .97 1.97 1.47 2.89 1.48 .19 .19 .15 .24 .25 .19 .47 .35 .32 .54 .34 .32 .34 .36 .42 .60 .42 .51 .50 .64 1.37 .61 .73 1.17 1.38 1.33 1.67 .61 .09 .25 2.06 1.77 .47 1.33 1.15 1.51 1.51 .29 1.52 1.26 .24 1.43 1.33 .28 5.98 2.49 7.75 7.85 3.54 9. 37 10. 74 4.82 9.24 9.90 4.20 3.85 4. 67 2.43 4.21 4.70 .91 4.02 5.11 1.39 6.08 7.16 2.83 6 . 58 6.50 3.46 6 . 58 7. 58 3.01 .31 .32 .14 .44 .41 .41 .29 .27 .09 .38 .51 .33 1.06 .99 .34 .19 1.65 6.36 .20 1.00 6.22 1.14 .55 .39 .71 .40 .55 .33 .45 .52 .81 .69 .93 1.14 1942 1942 1041 19*12 1942 1941 1942 1942 1941 1942 1942 1941 1942 1942 1941 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.11 .80 1.87 1.86 1.60 .26 1.72 1.42 .47 1.76 1.50 .42 .21 .29 1.90 2.12 .36 .65 .45 .14 1.63 1.26 .29 2.08 1.48 .28 8.12 9. 30 10.35 6.77 .63 .57 .37 1.56 1.26 .85 4.73 4.50 1.60 6.44 4.95 2.83 9.96 8.83 6 . 36 6 .74 6.83 2.84 5.14 2.80 2.84 6.18 Oct. 1942 Sept. 1942 Oct. 1941 2.86 2.11 1.18 1.26 1.33 8 . 57 1.57 2.92 3.36 1.93 2.92 7.57 6.70 4. 51 9.09 0.65 1.78 .85 1.94 1.05 .69 1.58 1942 1942 1941 1942 1942 1941 6.92 4.92 3.6 6 7.15 6 .55 2.41 6.46 5.95 4.01 6.07 5. 33 4.09 0. 38 .30 .24 .32 .25 .18 Oct. Sept. Oct. Oct. Sept. Oct. Oct. 1942 Sept. 1942 Oct. 1941 Chemicals.................................... Oct. 1942 Sept. 1942 Oct. 1941 Cigars and cigarettes................... Oct. 1942 Sept. 1942 Oct. 1941 Cotton manufacturing.............. Oct. 1942 Sept. 1942 Oct. 1941 Dyeing and finishing textiles---- Oct. 1942 Sept. 1942 Oct. 1941 Cement..................................... Mis Total Rehir New Total Dis- Lay- cella separa ing hiring acces charge off neous sion 2 tion 2 8.18 4.94 2.48 6.91 8.03 2. 87 7.42 8 .43 3. 39 9.04 8 . 79 4.89 10.41 10.98 4.77 1.66 1.86 .88 1.41 .41 .60 .94 .40 .12 1.87 .78 .32 .49 .30 .40 .54 .29 .92 1.34 1.16 1.70 1.52 1.19 1.37 .95 1.36 9.09 5.44 4.88 4.96 1.72 7.06 6.90 3.72 7. 61 7.42 3.61 6.88 6.88 4.25 9.56 9.69 3.68 8.21 4.27 5.36 5.07 1.97 8.00 6.21 3.68 10. 84 10.24 6 .77 7.34 7.77 3.24 5. 26 4.67 3.62 5.20 5.45 2.02 7.46 7.44 4.01 8.53 8.76 4.77 8 . 58 8.40 5.44 10.93 10.64 5.04 160 T able Monthly Labor Review—January 1943 2 . —Monthly Turn-over Rates (per 100 Employees) of Factory Workers in 42 Manufacturing Industries 1— Continued Separation rates Industry Date Quit Flour___ Discharg( Mis Total Rehir Lay cella New Total off neous separa ing hiring acces tion sion Oct. Sept. Oct. Foundries and machine shops.. Oct. Sept. Oct. Furniture . . Oct. Sept. Oct. Glass____ Oct. Sept. Oct. Hardware. Oct. Sept. Oct. 1942 1942 1941 1942 1942 1941 1942 1942 1941 1942 1942 1941 1942 1942 1941 7.15 7. 92 2.94 5.15 5. 51 2. 33 7.22 8 . 77 3. 35 4.86 4. 7S 1.63 5. 69 6.03 3. 50 Knit goods______ _ - Oct. Sept. Oct. . Oct. Sept. Oct. _ Oct. Sept. Oct. _ Oct. Sept. Oct. 1942 1942 1941 1942 1942 1941 1942 1942 1941 1942 1942 1941 5.25 5. 53 2.17 4. 29 4.78 1.43 5.6 8 4.30 1.87 4. 87 4. 93 1.49 _ Oct. Sept. Oct. Oct. Sept. Oct. Oct. Sept. Oct. Oct. Sept. Oct. 1942 1942 1941 1942 1942 1941 1942 1942 1941 1942 1942 1941 6 .45 5. 66 1.78 5.8 8 7. 65 2. 04 2. 41 .53 7. 50 9.50 3.54 .28 .03 .70 .72 .47 Oct. Sept. Oct. Newspapers and periodicals. Oct. Sept. Oct. 1942 1942 1941 1942 1942 1941 3. 80 5.24 1. 89 1. 56 1.39 .80 .2 2 2 .1 1 .29 .15 .24 . 14 2.54 .62 .46 1.23 Oct. 1942 Sept. 1942 Oct. 1941 Oct. 1942 Sept. 1942 Oct. 1941 Oct. 1942 Sept. 9142 Oct. 1941 Oct. 1942 Sept. 1942 Oct. 1941 Oct. 1942 Sept. 1942 Oct. 1941 5. 56 7.50 2.94 2:03 2 . 06 .55 .45 .28 .24 . 19 .45 .8 8 . 19 .34 Leather goods_____ Lighting equipment . Men’s clothing_____ Paints and varnishes. Paper and pulp. Petroleum refining. Planing mills. Printing: Book and job. Radios and phonographs... Rayon and allied products. Rubber boots and shoes__ Rubber tires. Sawrnills. Silk and rayon goods. Oct. Sept. Oct. Slaughtering and meat packing. Oct. Sept. Oct. Stamped and enameled ware__ Oct. Sept. Oct. Steam and hot water heating apparatus___ _____________ Oct. Sept. Oct. S ee 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 1 .6 8 8.56 7. 97 2.47 4.36 5. 51 1.45 6 .33 8.36 3.80 1942 1942 1941 1942 1942 1941 1942 1942 1941 7.18 8.82 4. 25 1942 1942 1941 4.07 3.37 2.41 6.14 6.52 3. 22 8.65 8 . 75 1 .8 6 0 . 81 .34 .49 .60 .61 .44 .73 .80 .51 .34 .30 .26 .47 .30 .35 .32 .2 2 .27 . 18 . 18 . 15 .27 .55 .19 .26 .28 .16 .50 .87 .29 .39 .37 .27 .2 0 .27 .2 0 .2 0 .19 .19 .24 .09 .47 .40 .34 .26 .48 .23 .6 8 .53 .28 .56 .56 .61 .27 .2 1 .29 Accession rates 0. 57 .59 1.04 .46 .43 1.42 3. 08 1.60 1. 35 2 . 06 .99 1.48 .24 .52 1.18 2 .1 2 2 .0 2 .31 2.08 1.80 .31 2.14 1.82 .38 1.76 1 .6 8 .61 1.49 1.43 .34 10. 65 10. 87 4. 78 8 . 29 8 . 35 4. 50 13.17 12.99 5.59 8.82 7. 75 3.98 7.89 8.28 5. 40 .30 .52 1. 74 .54 .70 1. 03 .61 2 . 08 .31 2. 73 .85 1.96 .78 .55 .13 1.45 1.54 .23 2. 44 1.61 .15 .51 .60 .40 .39 1. 17 .72 .43 1.07 .37 .49 1.05 2. 64 l. 71 1.49 2.14 ■ 9.49 1.70 8.62 .44 3.68 2.07 9.06 1.91 10. 36 .28 3.30 2.14 4. 75 1.55 4.73 .42 2.03 2 .1 0 12.94 1.56 13.49 .40 5. 90 1.23 1.34 .95 .19 .92 .98 .8 6 .27 .59 1.40 .03 .14 .1 1 . 12 .26 1. 23 1.32 1 .1 2 2.44 .77 1. 57 1.89 3.18 2. 48 6.33 1.58 1.15 3.47 .42 .14 .70 .1 0 6 . 65 6.82 4.31 6 . 46 7.20 2. 84 9. 00 8 . 54 2. 52 8 .37 6 .6 6 3.71 12.01 10.80 3.73 9. 30 9.18 4. 46 10. 36 11.82 5.22 7.82 6.79 4.19 7.91 7. 54 4.07 .77 1.24 1. 07 12. 46 12.13 4.03 9. 74 9. 72 4.96 11.80 13.10 6.12 9.25 7.80 6 . 00 8 . 77 8.27 5. 36 6 . 55 5.36 2. 53 6 . 03 4.8 6 2. 92 9. 71 5.62 2. 93 5.17 5. 20 2.36 7. 32 6 . 05 3.86 6.58 5. 63 3.41 12.15 7. 87 3.15 6.16 6 .44 3.43 7.31 8 . 07 8. 00 2. 59 7.45 8.05 3. 20 3.26 3. 53 1. 56 11.44 10. 46 3.94 8.30 2.71 8.31 8.78 3.6 8 3.46 3. 73 1. 91 12. 23 11. 42 5.27 6 . 64 8 . 52 4. 91 3.25 3. 07 2 . 38 7.43 5. 79 4.83 3.28 3. 37 1.24 8.54 7.48 6.34 4. 15 4. 20 2.16 7. 97 9.59 4.24 4.19 4. 38 2 . 86 10.40 9. 62 3. 28 6 . 53 7.42 3.25 11.81 6.96 11.81 12. 34 3.95 4.26 2. 90 1.92 10.81 12. 51 5.16 10. 73 14.51 1.39 6 . 99 8.03 4. 02 12.44 13. 28 4.64 4.56 3.10 2.45 12.52 14. 42 6.89 11.09 15.69 2.18 8.13 9.51 5.12 .34 2.93 2. 27 .56 2.17 1.78 .63 8.23 10.43 5. 68 15. 44 14.03 9.03 11. 49 12.31 8.96 1.49 5.91 1.15 6.30 1. 75 2.80 3.18 10. 20 2. 92 11.48 4. 39 6.00 .39 9.96 .75 10. 25 1.66 6 . 29 7. 40 7.45 4. 55 13.38 14.40 10. 39 10. 35 2.19 6 .95 8.18 7. 77 3.25 8.76 7.93 3.55 .2 1 1.67 1.19 . 16 1. 65 1.53 .39 1.47 1.31 .51 1 .8 6 1.41 .48 2 . 08 1.93 .38 1.06 1 .8 6 1 .8 8 .40 1 0 .2 0 5.60 3.80 11.00 7.95 161 Labor Tura-over T able 2.—Monthly Turn-over Rates (per 100 Employees) of Factory Workers in 12 Manufacturing Industries1—Continued Separation rates Industry Date Quit Stoves_____ - _____________ Structural and ornamental metal works_______________ Textile machinery_________ Mis. Total Rehir New Total Dis Lay cellasepara ing hiring acces charge off neous sion 2 tion Oct. 1942 Sept. 1942 Oct. 1941 6.07 5. 62 3.09 1942 1942 1941 1942 1942 1941 6 . 24 6 . 64 1.90 2.81 4. 33 3. 00 .2 1 1942 1942 1941 1942 1942 1941 4. 64 5.13 2.26 4.35 5.30 2. 59 .51 .47 . 13 Oct. Sept. Oct. - Oct. Sept. Oct. Tools (not including edge tools, machine tools, flies, and saws) _ Oct. Sept. Oet. Woolen and worsted goods....... . Oct. Sept. Oct. Accession rates 10. 70 11.50 5.88 2.83 3.10 .40 2. 29 1.74 .48 2.04 1.80 .23 1 1 .2 1 .52 .71 .34 .37 .77 1.78 1.55 .26 1.77 1.55 7.06 7.41 3.04 7. 75 8.07 4.04 0 . 68 2. 27 3. 71 2.16 1.41 .32 .65 .64 2.03 .96 1.06 . 18 .37 .46 .13 .26 .39 1.41 .98 .94 .76 .31 .19 .29 .27 .2 2 .24 .29 1 .6 8 .2 2 9. 98 3. 65 5. 22 6 . 79 3. 96 .2 1 .28 .49 .2 2 1.27 1.89 1. 07 16.82 13.98 14. 85 11.75 3.49 ■ 3.89 10. 04 10. 97 2. 33 5.36 5. 06 3. 54 10. 56 7. 81 6 . 80 3.93 4. 72 4.84 3.43 8 . 09 7. 29 4.15 5. 99 6 . 73 4. 50 1 1 .6 8 2.67 5.73 5.83 3.75 1 No individual industry data shown unless reports cover at least 25 percent of industrial employment. Military separations included. 2 In the following table are given the quit rates for strategic war industries for which the publication of other turn-over data has been restricted. T able 3.—Monthly Quit Rates (per 100 Employees) in Selected W ar Industries Quit rates Industry Average for 11 selected war industries 1_____ October 1942 September 1942 October 1941 _ _ ___ ___ __ 4.29 4.81 1.99 Aircraft_______ -- - ___ ................. .......... Aluminum and magnesium products_________ Brass, bronze, and copper products___________ . ___ Electrical machinery________________ __ _ _______ _______ . . Engines and tu r b in e s ..___ Explosives____ _ _______ _____ ________ . . . . Firearms________ ___ _ . _____ ____ _____ Metalworking m achinery____ ___________ . . Shipbuilding__ _ ____ ___________ .. ___ 4.41 2 5. 27 5.17 3.17 4.72 4 34 5. 65 3.60 2.13 3.80 4.16 3.87 2.73 1. 5 5 2. 37 1.64 1 . 61 1. 27 2.13 1. 93 2. 70 2 .0 1 2 .1 2 4. 50 3. 64 5.39 6 .6 6 1 Includes blast furnaces, steel works, and rolling mills and foundries and machine shops as shown in table 2 . 2 Not directly comparable with data previously released. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Building Operations SUMMARY OF BUILDING CONSTRUCTION IN P R IN CIPAL CITIES, NOVEMBER 1942 1 BUILDING permit valuations for November 1942 were only about a third as high as they were for November 1941. Valuations for new nonresidential buildings dropped 85 percent, chiefly because the federal Government had tapered off its expansion of war plant facili ties. Contracts were awarded for more new dwelling units in Federal wai housing projects in November 1942 than in 1941, but continued curtailment of private building, as a result of priorities, caused a 52-percent decline in total valuations of new residential buildings. \ aluations for additions and repairs dropped 46 percent between November 1941 and 1942. November was the ninth consecutive month of declining permit valuations, the decrease from the previous month exceeding 30 percent. The October-to-November reduction in permit valuations for non residential buildings amounted to 52 percent; for residential buildmgs, 21 percent; and for additions and repairs to existing structures 25 percent. Comparison of November 1942 with November 1941 and October 1942 The volume of building construction in 2,367 identical cities with populations of 500 and over, which reported to the Bureau of Labor Statistics in October and November 1942 and November 1941 is summarized in table 1. ’ T able 1 . Summary of Building Construction for Which Permits Were Issued in 2,367 Identical Cities, November 1942 Number of buildings Class of construction November 1942 Permit valuation Percent of Percent of change from— November change from— 1942 (thou Octo Novem sands of Octo Novem ber 1942 ber 1941 dollars) ber 1942 ber 1941 All construction___ 37,426 -30.2 -36.5 69, 989 -30.4 - New residential___ New nonresidential--. . Additions, alterations, and repairs 10,175 4,890 22,361 -23.7 -37.1 -31.2 -45.4 -53.8 -24.7 43, 548 13.440 13, 001 - 2 1 .0 -52.3 -24.7 -51.7 -85.4 -45.5 6 6 .0 1 More detailed information by geographic divisions and population groups is contained in a seDarate uponCrequestd eDtltled “ Building Construction, November 1942,” copfes of which will be furnfshed 162 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Building Operations 163 The number of new dwelling units for which permits were issued and the permit valuation of such new housekeeping residential con struction in the 2,367 cities reporting in November 1942 are presented in table 2. Percentage changes between November 1942 and October 1942 and November 1941 are also shown. T able 2.—Number and Permit Valuation of New Dwelling Units in 2,367 Identical Cities, November 1942, by Source of Funds and Type of Dwelling Number of dwelling units Source of funds and type of dwelling All dwellings______________________ November 1942 _ 13,085 Privately financed____ _________________ 1 -family____________________________ 2 -family i ___ _____________ _________ M ultifam ily 2__________________ Publicly financed_____ _________________ 1 Includes 2 Includes 9,370 6,051 • 902 2,417 3,715 Permit valuation Percent of change from Percent of November change from— 1942 (thousands October Novem of dollars) October Novem 1942 ber 1941 1942 ber 1941 -17.6 -45.9 40,256 -25.6 -54.5 - 1 0 .1 - 2 1 .8 -23.6 +61.2 -32.1 -56.4 -60.1 -25.5 -52.4 +35.8 29, 299 21, 780 2,450 5,069 10,957 -15.3 -19.5 -33.4 +32.1 -43.8 -56.4 -60.1 -2 5 .5 -52.4 +17.0 1- and 2-family dwellings with stores. multifamily dwellings with stores. Comparison of First 11 Months of 1941 and 1942 Permit valuations reported in the first 11 months of 1941 and 1942 are compared in table 3. T able 3.—Permit Valuation of Building Construction, by Class of Construction, First 11 Months of 1941 and 1942 1 Permit valuation First 11 months of— Class of construction 1942 (thousands 1941 (thousands of dollars) of dollars) All construction_______ ___ - ________ ________ New residential _ ________________ _________ New nonresidential_________ _ __________________ Additions, alterations, and repairs_____ ___ _________ Percent of change 1,658,907 2,820,168 -41.2 756,978 661,853 240,076 1,385,917 1, 085, 633 348, 618 —45.4 -39.0 -31.1 1 Based on reports from a varying number of cities with a population of 500 and over, the cities being identical for any given month of both years. The number and permit valuation of new dwelling units for which permits were issued in the first 11 months of 1942 are compared with similar data for the corresponding months of 1941 in table 4. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J 64 Monthly Labor Review—January 1943 T able 4.—Number and Permit Valuation of New Dwelling Units, by Source of Funds and Type of Dwelling, First 11 Months of 1941 and 1942 1 Number of dwelling units Source of funds and type of dwelling First 11 months of— 1942 First Percent of change 1941 Permit valuation 11 months of— Percent of 1942 1941 change (thousands (thousands of dollars) of dollars) All dwellings____ 223, 805 364, 317 -38.6 740, 640 1, 370, 420 -46.0 Privately financed 1family____ 2family A M ultifamily3... Publicly financed. 163, 291 115, 761 14,888 32, 642 60, 514 306, 425 238, 627 20, 005 47, 793 57,892 -46.7 -51.5 -25.6 -31.7 +4.5 540, 550 412, 346 41, 275 8 6 , 929 200,090 1,174,427 984, 056 52, 393 137, 978 195, 993 -54.0 -58.1 - 2 1 .2 -37.0 + 2 .1 'B ased on reports from a varying number of cities with a population of 500 and over, the cities beingidentical for any given month of both years. ’ 2 Includes 1 - and 2 -family dwellings with stores. 3 Includes multifamily dwellings with stores. Construction From Public Funds , November 1942 The value of contracts awarded and force-account work started during October and November 1942 and November 1941 on all con struction projects financed wholly or partially from Federal funds is shown in table 5. This table includes other types of construction as well as building construction, both inside and outside 2,367 reporting cities. 6 I 5 aluP °.f Contracts Awarded and Force-Account W ork Started on Construction I rojects financed From Federal Funds. October and November 1942 and November 1941 [Thousands of dollars] Source of funds Contracts awarded and force-account work started November 19421 October 1942 1 November 19412 Total_________________________ 233, 356 505, 602 345, 745 War public works_____________ Regular Federal appropriations 3... Federal Public Housing Authority 2,421 194,949 35, 986 3, 451 456, 997 45,154 2, 770 321, 335 « 21, 640 1 Preliminary; subject to revision. 2 Revised. 3 Exclusive of contracts awarded for public housing. 4 Includes contracts awarded for all public housing. 3 Includes $9,300,246 for contracts awarded on from regular Federal appropriations. USHA projects and $12,339,448 for contracts awarded ’ ’ The value of all contracts awarded for public buildings and highway construction, to be financed wholly from State funds, as reported by the State governments for October and November 1942 and November 1941, was as follows: November 1941 October 1942_._ November 1942 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Public buildings Highway construction $1, 896, 345 343, 399 208, 826 $8, 788, 661 4, 036, 432 2, 947, 966 Building Operations 165 Coverage of Building Permit Statistics Building-permit data are collected by the Bureau of Labor Statistics each month from more than 2,500 places having a population of 500 or more in 1940, from which are selected those for cities which also re ported in the preceding month and in the corresponding month of the previous year. In addition, the Bureau receives notifications of the value of construction contracts awarded by Federal and State govern ments. Federal and State building construction in the 2,367 reporting cities totaled $19,725,000 in November 1942, as contrasted with $39,469,000 in the previous month and $66,419,000 in November 1941. The permit-valuation figures represent estimates of construction costs made by prospective private builders when applying for permits to build and the value of contracts awarded by Federal or State governments. No land costs are included. Unless otherwise indicated, only building construction within the corporate limits of the reporting cities is included in the tabulations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Retail Prices RETAIL FOOD PRICES IN NOVEMBER 1942 THE index of retail food costs, compiled by the Bureau of Labor Statistics, for 51 large cities combined, stood at 131.1 percent of the 1935-39 average on November 17, 1942. The increase from October 13 was 1.2 percent and the November index was the highest reached since January 1930. The rise in cost of food has been continuous since November 1940, with the exception of a period in December 1941, when the average did not change. The average increase from mid-October to mid-November was chiefly due to advances in prices of those fresh fruits and vegetables and fresh fish which are not under direct control by the Office of Price Administration. ^ Uncontrolled foods advanced 6.6 percent over the month and on November 17 were selling 21 percent higher than in May of this year. Food prices under direct control of the OPA advanced 0.5 percent during the month, partly as a result of adjusted ceilings for commodities such as lard, vegetable shortening, canned fruits and vegetables, and canned fish, and partly resulting from increases for certain commodities brought under control on October 5, 1942. The average for foods under control on November 17 is 6 percent above the level of May 12, date of the last survey before control was inaugurated in the retail markets. Table 1 shows the percentage changes from October to November and from May to November 1942, and the relative importance in the food budget for various groups of foods controlled by OPA and for those not under direct OPA control. T able 1.— Changes in Prices of Controlled and Uncontrolled Foods Percent of increase Group Oct. 13 to Nov. 17 M ay 12 to Nov. 17 All foods______ Controlled by OPA on November 17 Under March ceilings... Optional ceilings, March prices or fixed percentage m ark up— Mark-up ceiling o n ly ... Under July 27-31 ceiling Under September 28-October 2 ceiling Uncontrolled by OPA on November 17 Percent of total family food bill 1 UU 5 !i 6.3 3!8 1 0 .1 6 .6 13.3 17.6 21.3 .8 8 89 44 3 29 11 A regulation issued in October by the Office of Price Administration permitted ceiling adjustments for approximately 13 percent of the foods in the average family budget by allowing retailers to take a fixed percentage mark-up over the purchase price. Among the foods 166 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 167 Retail Prices affected, advances were reported for lard, vegetable shortening, canned vegetables, canned fish, and sugar. A decrease was reported for dried fruits. Percentage changes in retail costs of food on November 17, com pared with costs on May 12, 1942, in November 1941, and in August 1939 (before the outbreak of war in Europe), are shown in table 2. T able 2.— Changes in Retail Costs of Food in 51 Large Cities Combined, by Commodity Groups Percent of change, Nov. 17, 1942, compared with— Percent of change, Nov. 17, 1942, compared with— 1941 1939 Nov. 18 Aug. 15 All foods_________ + 1 .2 +7.8 +15.9 Controlled, ___ + .5 +6.3 (■) Uncontrolled---- + 6 .6 +21.3 (0 Cereals and bakery + .5 +3.4 0 products________ M eats_________ -- + .5 + 6 .1 + 19.5 Beef and veal--- + . 1 + 2 .0 + 1 2 .6 P ork---- ---------- + .3 +1.3 +18.4 + . 8 +13.4 +24.8 Lamb________ Chickens— --. + .4 +17.7 +34.3 Fish, fresh and canned—------- +3.0 +17.9 +30.9 +40.2 (') (■) Commodity group 1942 Oct. 13 1 Not May 12 +13.2 +37.8 +27.1 +41.8 +35.6 +41. 1 1942 Commodity group Oct. 13 Dairy products____ Eggs-------------------Fruit and vegetablesFresh_________ Canned____ — Dried________ Beverages.-- - — Fats and oils--------Sugar____ ______ May 12 1941 1939 Nov. 18 Aug. 15 +0.5 +6.9 +9.0 + 1 .0 +44.1 +13.8 +3.2 +9.9 +28.3 +3.8 + 1 1 .2 +30.0 +1.5 +3.4 + 2 0 .6 - . 1 + 14.1 +28.8 +10.4 0 +• 4 + 2 .6 + 1 .6 +16.5 . 1 +12.5 + .1 +41.6 +83.4 +53.1 +55 . 8 +38.5 +65.8 +31.3 +47.1 +32.8 +78.6 available. Indexes of retail costs of food by commodity groups are presented in table 3 for May, September, October, and November 1942, Novem ber 1941, and August 1939. The accompanying charts show the trend of the costs of all foods, January 1913 to November 1942, and of each major commodity group, January 1929 to November 1942. T able 3.— Indexes of Retail Costs of Food in 51 Large Cities Combined,1 by Commodity Groups, in Specified Months [1935-39=“ 100] 1941 1939 May 12 Nov. 18 Aug. 15 1942 Commodity group Nov. 17 s Oct. 13 Sept. 15 All foods.......... ................... ........ ......... ........... 131.1 129.6 126.6 1 2 1 .6 113.1 93.5 Cereals and bakery p ro d u c ts___ ______ Meats __ ________ __________ "Peef and veal. ______ __________ Pork ___________________ — 105.7 131.9 126.6 124.8 134.0 133.5 177.9 131.8 166.3 141.5 144.6 126.9 149.7 124.6 124.3 127.0 105.7 131.2 126.5 124.4 133.0 133.0 172.8 131.2 3 164. 7 3 137.1 139.3 125.0 3 149.9 124. 1 3 121 . 2 126.9 105.4 130.6 126.1 124.0 133.7 133.7 168.2 127.7 155.2 129.7 130.3 123.8 143.4 123.8 120.7 127.0 105.2 124.3 124.1 123.2 118.2 113.4 150. 9 123.3 115.4 128.7 130.0 122.7 131. 2 124.6 122.4 127.1 1 0 2 .2 93.4 95.7 99.6 T^m h ________________ -- Chickens __________________ Fich fresh and canned_____________ Dairy products______________________ Fggs ____________________ ______ Fruits and vegetables _______________ Fresh __________________ Canned _________________ Pried ________________ p evetages _________________ Fats and oils ___________________ Sugar ____________________ 110.4 112.4 105.4 107.4 99.4 135.9 120.9 146.1 110.3 1 1 1 .2 105.2 116.2 112.9 106.7 112.9 8 8 .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 'Aggregate ccsts of 54 feeds in each city, weighted to represent total purchases of families of wage earners and lower-salaried workers, have been combined with the use of population weights. 3Preliminary. sKevised. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AVERAGE FOR 51 LARGE CITIES Monthly Labor Review—-January 1943 UNITED STATES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RETAIL COST OF ALL FOODS BUREAU OF LABOR STATISTICS 169 Retail Prices RETAIL COST OF FOOD 1935-39 INDEX 220 = 100 INDEX 220 200 200 180 1 f 1\ 180 L j s FRUIT S AND V E 6 E ' 'A B LE S 160 140 160 J h V AT 120 100 140 120 A V 100 v w - — 80 CDS 60 I 60 140 140 120 / 120 ALL FOODS / 100 100 80 60 80 o U. _J '* " A l 80 CEREALS A N D / ' 8/kKERY PR O D U C T S 1 1 60 r J40 120 140 120 J\ — A -L FC)O DSx 100 100 80 80 / A e AT S _ 1 _____ ______ 60 140 r -A L L 60 140 rOODS 120 120 */ h jr 100 V DA IR Y PR O D U C T S 80 60 60 1929 1930 1931 1932 1933 1934 u.s. 3EPT. OF LABOR-BUREAU OF LABOR STATISTICS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1935 1936 1937 1938 1939 1940 1941 1942 1 170 Monthly Labor Review—January 1943 Cereals a n d b akery 'products. —The cost index for this group re mained unchanged between October 13 and November 17, although increases were reported for flour and for three foods not included in the index (wheat cereal, rice, and rolled oats). Ten cities reported increases in the average price of flour. The average price of vanilla cookies decreased by 1.1 percent. Prices for bread remained stable, with only two cities reporting minor changes. All foods included in the group are under control by the OPA, but ceiling adjustments were permitted in October for prepared breakfast cereals. M e a ts.-—T h e index rose 0.5 percent over the month, primarily as a result of increases for fresh fish, prices of which are uncontrolled, and of adjustments allowed in the ceilings for canned salmon. Prices of beef and veal and pork were relatively stable, the average increases being 0.1 percent and 0.3 percent, respectively. Lamb prices rose by 0.8 percent, as prices for leg of lamb advanced in 31 cities. Advances in beef and pork prices are contraseasonal, scarcity of meats being reported in most cities. Prices of roasting chickens also advanced contraseasonally, resulting in price increases of from 0.1 cent to 3.0 cents per pound in 22 cities. Under the plan for adjusting ceilings to a mark-up basis, the price of pink salmon increased in 28 cities, with no decreases reported, while red salmon prices advanced in 8 cities. Prices of fresh fish rose in 31 cities, resulting in a 6.7-percent increase for the 51 cities combined. Meat prices have risen steadily since November 1941, when the index was 110.4 as compared with 131.9 for November 17, 1942, or a net increase over the year of 19.5 percent. D a ir y p ro d u c ts. The cost of dairy products rose 0.5 percent from mid-October to mid-November, a relatively small increase when compared with the 2.7-percent advance occurring between midSeptember and October 13. Prices of milk and butter usually rise at this season, but the price of fresh milk remained unchanged over the month, with increases reported for only 4 of the 51 cities. The price of butter rose 1.1 percent, with 36 cities sharing the increase. There was a slight increase in the price of cheese, while evaporated milk remained stable. E ggs.-— Prices of eggs increased in 34 cities, resulting in a net ad vance of 1 percent. This is much less than the usual seasonal advance. Prices of eggs in November were 14 percent above the same month of 1941 and 83 percent above the price in August 1939. F r u its a n d vegetables. —Costs for all fruits and vegetables combined rose 3.2 percent between October 13 and November 17 and were 28 percent above November 18, 1941. Among the fresh fruits and vege tables, not under control by OPA, carrots and apples rose by more than the usual seasonal advances, the increases being 21 percent and 8 percent, respectively. Contraseasonal advances of 7 percent for lettuce and 8 percent for spinach were accompanied by less-than-usual increases tor fresh green beans. Decreases were reported for cabbage and sweetpotatoes, following lower prices to the farmers. Small increases were reported for oranges and potatoes, on which ceilings were set on October 5. Advances in canned fruits and vegetables followed the OPA regulations permitting adjustment of the ceiling prices during October and November. Prices of dried prunes, on which a mark-up ceiling is mandatory, decreased by 0.6 percent, while prices of dried beans remained unchanged. The order of November 12 making https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Retail Prices 171 mark-up ceilings mandatory on the latter was too late to affect prices on November 17. Beverages.—Coffee prices advanced in 25 cities while the prices of tea increased in 13 cities, resulting in a 0.4-percent advance for the beverage group. The cost of beverages was 10 percent higher than in November 1941 and 31 percent above August 1939. Fats and oils.—Prices for fats and oils rose 2.6 percent, following an advance of 2.8 percent in the uncontrolled price of peanut butter and a 6.4-percent increase for lard, resulting from removal of the March ceiling prices and substitution of a mark-up ceiling. This advance for lard is contrary to the usual seasonal picture, but retail prices had been frozen at abnormally low levels. Small increases were reported for shortening in cartons and in other containers, while prices of the remaining foods in the group were relatively stable. Sugar.—Retail prices of sugar were relatively unchanged, with 9 cities reporting increases, 5 showing decreases, and 37 reporting no change. Average prices of 65 foods in 51 cities combined are presented in table 4 for May, October, and November 1942, and November 1941. T able 4.—Average Retail Prices of 65 Foods in 51 Large Cities Combined, May, October, and November 1942 and November 1941 1941 1942 Article Nov. 17 2 Cereals and bakery products: Cereals: Flour, wheat_______________ - - . 1 0 pounds.. Macaroni__________________ ___ ..pound-. Wheat cereal 2_____________ __ 28-oz. pkg__ Corn flakes____ ------- ___ 8 ounces,. Corn meal___________ _____ __ -..pound.. Rice 2_____________________ _______ do___ Rolled oats 2_______________ ________do___ Bakery products: Bread, w hite______________ ________do___ Bread, whole-wheat________ ________do___ Bread, rye_________________ ________do___ Vanilla cookies____ - - - - - - ________do___ Soda crackers________ ____ _______ do___ Meats: Beef: Round steak___________ ____ ________do___ Rib r o a s t . ._____ ___ -.- ____ ..d o __ Chuck roast___________ .-- ________do___ ________do— Veal: Cutlets_______ ____.Pork: Chops___ _______________ ________do___ Bacon, sliced_______________ ________do---Ham. sliced 2_____________ ________do---Ham. whole__________ _____ ________ do_ __ Salt pork-.- ______________ __ _____do__ Lamb: Leg----------------------------------- ________do___ _____ do___ Rib chops_____________ ____ Poultry: Roasting chickens______ ________do___ Fish: ________do___ Fresh, frozen____________ Salmon, pink---- -------- ----- ___ 16-oz. can.. Salmon, red 2-_- -_ - ----- -_______ -do___ Dairy products: B utter------------------------------------ .. - ..p o u n d .. Cheese_____________ ________ ............ ..d o ___ Milk, fresh (delivered)__________ -_- ___ quart.. Milk, fresh (store). ------- . ________do___ Milk, fresh (delivered and store) 2 . ___ ____do___ Milk, evaporated__________ ____ ---HH-oz. can.. Eggs......................................................... _______dozen.. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Oct. 13 May 12 Nov. 18 1 2 .6 8 .8 Cents 55.3 14.1 24.0 7.0 5.1 12.5 8.7 Cents 51.6 14.2 24.1 7.2 4.7 12.3 8 .6 Cents 48.5 14.0 23.8 7.1 4.4 9.1 7.5 8.7 9.6 9.7 26.5 16.6 8.7 9.6 9.7 26.8 16.6 8.7 9.5 9.7 27.7 16.4 9.5 9.6 25.7 15.2 44.5 34.7 30.2 55. 1 44.5 34.8 30.2 55.1 44.2 34.0 28.9 53.6 39.3 31.1 26.5 49.0 43.0 40.8 59.7 38.5 23.5 43.1 41.3 59.7 38.4 23.8 43.2 39.3 58.8 37.8 24.0 36.0 36.3 52.4 32.0 38.4 46.5 42.7 38.0 46.4 42.4. 33.8 41.3 36.1 30.5 37.8 31.7 Cents 55.4 14.1 24.1 7.0 5.1 (?) 2 2 .2 (3) (3) 8 .6 2 0 .0 (•) 2 2 .0 2 1 .8 2 0 .0 40.6 40.7 40.0 36.3 54.6 36.1 15.1 13.5 14.5 9.2 59.0 54.0 35.9 15.0 13.5 14.5 9.2 58.5 45.7 34.0 14.9 13.5 14.4 8.7 40.9 43.3 34.2 14.7 13 6 14.3 8.7 51.9 172 Fa b l e 4 . Monthly Lahor Review—January 1943 Average Retail Prices of 65 Foods in 51 Large Cities Combined, M ay, October, and November 1942 and November 1941— Continued 1942 1941 Article Fruits and vegetables: Fresh: Apples______________ Bananas____________ Oranges_____________ Grapefruit 2__________ Beans, green_________ Cabbage____________ Carrots_____________ Lettuce_____________ Onions_____________ Potatoes____________ Spinach_____________ Sweetpotatoes________ Canned: Peaches_____________ Pineapple___________ Grapefruit juice 2 _____ Beans, green 2________ Corn________________ Peas________________ Tomatoes____________ Dried: Prunes________ _____ Navy beans__________ Beverages: Coffee__________________ Tea___ ________________ Cocoa 2_________________ Fats and oils: Lard___________________ Shortening, other than lard: In cartons___________ In other containers____ Salad dressing______ _____ Oleomargarine___________ Peanut butter___________ Sugar and sweets: Sugar__________________ Corn sirup 2_____________ Molasses 2_______________ 1 Preliminary. 2 Not included in index. ------ pound. ----------do-_--------dozen----------each. -------pound. --------- do.--------bunch. ______head. -------pound. ..15 pounds. -------pound. --------- do__ Nov. 17 4 Oct. 13 Cents 6.7 10.7 45.0 Cents 6 .2 10.7 44.5 6 .8 1 0 .1 May 12 Cents 7.5 1 2 .0 31.4 6.3 13.4 4.5 Nov. 18 Cents 5.3 8 .0 38.3 5.5 15.4 3.5 6.7 8.7 4.6 39.1 7.9 4.2 17.6 3.6 9.8 14.9 4.7 51.6 10.5 5.2 13.9 4.7 51. 1 9. 7 •5.6 53.0 7.4 5.4 .No. 2j4> can. -------- do__ ...N o . 2 can.. --------- do__ ______ do__ --------- do__ --------- do__ 25.0 29.1 13.1 13.9 13.6 14.7 11.9 24.6 28.6 13.0 4 13.7 13.4 14.6 11.7 23.3 27.1 9.8 14.0 13.0 15.8 12 . 1 21.4 -------pound.. --------- do___ 15.8 9.2 4 15.9 9.2 12.3 9.0 10.5 8.3 ______ do-... --.$4 pound.. ---H pound.. 28.1 21.9 10.3 28.2 28.9 22.4 1 0 .2 26.6 19.5 9.1 16.7 3.8 8 .1 22. 2 4 1 0 .6 6 .6 9.2 6 .8 2 2 .2 9.5 11.9 1 2 .0 14.2 9.9 ------ pound.. 18.4 17.3 17.9 14.8 --------- do___ --------- do___ --------- pint.. ------ pound.. ---------do___ 19.6 24.4 25.1 22.5 29.0 19.5 24.3 25.2 22.5 28.2 19.8 25.8 25.4 22.4 26.9 17.7 23.3 23.7 19.5 19.6 ---------do___ . ..24 ounces.. ...18 ounces.. 6.9 15.3 15.0 6 .8 15.2 15.0 6.9 14.8 14.5 14.1 13.5 3 Composite 4 Revised. 6 .1 prices not computed. Details by Cities Of the 51 cities included in the index, 40 reported increases and 11 showed decreases in the average food costs. The 5 cities not in cluded in the indexes reported advances. All cities surveyed in the New England, Middle Atlantic, Mountain, and Pacific areas reported increases, while all cities surveyed in the West South Central region showed decreases. Locally lower prices for fruits and vegetables were primarily responsible for the lower costs in the Southwest. Cities showing the greatest increases over the month were San Fran cisco, 3.5 percent; Newark, 2.5 percent, and Philadelphia, Fall River, and Minneapolis with approximately 2-percent increases. The largest decrease reported by any city was 0.8 percent in Savannah and Dallas, while New Orleans, Peoria, Jacksonville, and Houston showed retail food cost declines of about one-half of 1 percent. Los Angeles con tinued to report the highest prices over November 1941, with a 22-percent difference while the smallest increase over the year was 11 percent in Louisville, Ky. Indexes of food costs by cities are shown in table 5 for May, October, and November 1942, and November 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 173 Retail Prices T able 5.— Indexes of the Average Retail Cost of A ll Foods, by Cities,1 May, October, and November 1942 and November 1941 [1935-39 = 100] City United States Nov. 17 2 - Oct. May 12 13 - - 131.1 129.6 New England: "Poston Bridgeport - -Tifili Biypr "JVTanchpsfpr New Haven Portland, Maine Provi <ipnpp. Middle Atlantic: Buffalo Newark^- New York _ - P h i1or| P-lph ia Pittsburgh B oohio^tor East North Central: Ohicogo Oio pin n a.t.i OlpyalaTld Columbus, Ohio___ Detroit M ilwRIl^P^ Pp.nria Springfield, 111 __ West North Central: Kansas City. __ M innPRpnlis Omaha 1942 1941 1942 1 2 1 .6 City Nov. 18 113.1 130 4 130. 1 130 fi 130 0 130.3 130.0 129.7 128. 5 128.6 128. 3 128 8 128.6 128.5 128. 9 118.3 111.5 121.3 111.5 120 . 8 111. 7 124. 0 1 1 2 .8 1 2 0 .6 110.5 121.7 1 1 1 .2 1 2 2 .1 1 1 2 .1 133 7 133.6 130.2 128 2 129.6 129 2 130.3 131. 8 130. 3 128. 0 125.8 129.4 128 2 129 0 125. 2 120.9 118.0 119.4 121.4 122. 3 121 . 0 115.2 111.9 113.1 108.7 112.9 129 9 130 6 132 5 124.4 129. 6 129 7 12 fi 8 134.6 134.3 128. 9 130.1 131. 8 122.7 128.2 129 2 125 2 135.2 133.1 121.7 122.4 124.1 118.6 122.4 125.0 119.8 129.0 128.0 114.8 114.3 116.4 110.4 112.1 109.5 1 1 2 .0 114. 9 111. 3 116.1 115.7 125.0 124.0 118.8 109.6 128. 9 126. 6 120.9 112.9 127.0 127.1 119.9 109.4 1941 Nov. Oct. May Nov. 172 12 17 13 West North Central— St. Louis.-- St. P au l_____ ____ South Atlantic: Atlanta - -Baltimore___ - Charleston, S. C ---Jacksonville --- . . . Norfolk 3 -- Richmond________ Savannah------------Washington, D. C_. East South Central: Birmingham______ Louisville------------Memphis_________ Mobile___________ West South Central: Dallas______ -- Houston---- ---------Little Rock.. New Orleans... __ Mountain: Butte. . . - Denver -- --Salt Lake City____ Pacific: Los Angeles____ Portland, Oreg-----San Francisco____ Seattle. . ----------- 130.8 129.9 123.8 117.0 127.1 125.8 118.7 111. 4 129.2 129.0 134.9 133.8 127.6 127.7 137.1 137.7 135.4 4134.0 128.9 128.2 136.0 137.1 130.5 129.5 127.7 126.5 134.4 137.6 125.1 132.4 130.3 140.7 120.4 125.8 123.2 127.4 126.1 120.9 130.3 120.7 111 . 1 114.3 113.1 119.2 116.7 1 1 1 .8 118.6 111.4 128.1 120. 5 1 1 2 .6 126.9 1 2 2 .6 114.1 132.6 123.5 112. 3 136.8 126.8 1 2 0 .2 126. 1 132.9 4130. 5 141.4 116.8 125.9 123.2 129.0 111. 7 118.6 114.4 118.7 131.3 129. 5 121.5 110. 9 129.9 128.4 122.9 113.2 136.1 134.0 124.2 115.7 141.5 143.2 139.2 141.5 140.0 142.2 134.6 139.6 128.1 134. 5 125. 5 129.9 115.4 121. 7 114.4 118.9 1 Aggregate costs of 54 foods in each city, weighted to represent total purchases of families of wage earners and lower-salaried workers, have been combined for the United States with the use of population weights. Primary use is for time-to-time comparisions rather than place-to-place comparisons. 2 Preliminary. . , s Includes Portsmouth and Newport News. 4 Revised. Annual Average Indexes oj Retail Food Costs, 1913 41 Annual average indexes of food costs for the years 1913— 41, and monthly indexes for January 1941 to November 1942, inclusive, are shown in table 6. T able 6 . — Indexes of Retail Food Costs in 51 Large Cities Combined, 1913 to 1942 A ovember [1935-39 = 100] Year All-foods index Year All-foods index Year and month All-foods index 1941 130.8 79.9 1928_____ 1918 132.5 January_______ 81.8 1929_____ 1914 126.0 February_____ 80.9 1930_____ 1915 101 A 103. 9 March___ ___ 90.8 1981 iyio----— 86.5 April______ 116.9 1982 1917 1988 84.1 M ay_____ . .. 134.4 ii nm 93. 7 June -_ . . .. 149.8 1984 y i y -------ilyzu--------non 100. 4 J u ly .. . ... 168.8 1985 101.3 August_______ 128.3 198fi 1921 105.3 September-----119.9 1937 1922 97.8 October___ _ 124.0 1988 I i'Aj --------95.2 N ovem ber... 1939 1 2 2 .8 1924 96.6 December... . . . __________ 132.9 1940 1925 __________ 1941 __________ 137.4 .................... 1926 .................... . 105.5 132.3 .................... 1927 .................... 501152— 4 3 — — 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Year and month All-foods index 1942 97.8 97.9 98.4 1 0 0 .6 10 2 .1 105.9 106.7 108.0 110.7 1 1 1 .6 113.1 113.1 January.._ . - .. February ____ M a r c h ..____ April. _ ____ M a y ... _____ June___ ____ July--------------August_______ September____ October.......... November____ 116.2 116.8 118.6 119.6 121.6 123.2 124.6 126.1 126.6 129.6 131.1 Wholesale Prices WHOLESALE PR IC ES IN N OVEM BER 1942 1 CONTINUED gains in prices for agricultural commodities together with higher excise taxes caused the Bureau of Labor Statistics com prehensive index of nearly 900 price series in primary markets 2 to rise 0.3 percent in November. The all-commodity index reached 100.3 percent of the 1926 average, the highest level in more than 16 years. Except for the increased taxes on alcohol and tobacco prod ucts, prices for most industrial commodities were firm or slightly lower than in October. In the past year the all-commodity index has risen 8.4 percent and is more than 33 percent higher than in August 1939. Largely as a result of the higher taxes on alcohol the index for chem icals and allied products advanced 3.4 percent in November. Average prices for miscellaneous commodities increased 1.7 percent; farm prod ucts, 1.4 percent; and foods and fuel and lighting materials, 0.1 per cent. The index for building materials declined slightly. Quota tions for raw materials averaged 0.9 percent higher for November than for October, primarily because of the increase in prices for nonprocessed agricultural commodities. Semimanufactured articles were fraction ally lower, while manufactured commodities remained unchanged at the October level. Although primary market prices for industrial commodities have fluctuated within a comparatively narrow range since November 1941, other groups of commodities—mostly agricultural—have risen sharply. In the past year prices for livestock and poultry advanced about 34 percent; fruits and vegetables, 31 percent; meats, 23 percent; dairy products, 15 percent; and grains, 10 percent. The index for farm products was 22 percent higher than for November 1941 and that for foods had risen nearly 16 percent. Following the outbreak of World War II in the autumn of 1939, prices of nearly all commodities began to rise rapidly. In the little more than 3 years of war, average prices for farm products have ad vanced 81 percent and foods, 54 percent. However, price controls were placed on a large number of industrial commodities soon after the markets began to rise, and prices for metals and metal products and fuel and lighting materials were only 11 percent and 9 percent, respectively, higher than they were in August 1939. 1 During the period of rapid changes caused by price controls, materials allocation, and rationing, the Bureau of Labor Statistics will attem pt promptly to report changing prices. Indexes marked (*), however, must be considered as preliminary and subject to such adjustment and revision as required by later and more complete reports. 2 The Bureau of Labor Statistics wholesale price data for the most part represent prices prevailing in the first commercial transaction.” They are prices quoted in primary markets, at principal distribution T in in f c 174 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wholesale Prices 175 With an advance of 1.4 percent during November, average prices for farm products in primary markets rose to the highest point since the autumn of 1925. The upward movement was characterized by sharp increases in prices for fresh fruits and vegetables and by higher prices for fresh milk—not under Office of Price Administration regula tion. In addition, grains advanced 1.4 percent, with corn and oats up more than 3 percent; barley, over 1 percent; and wheat, 0.5 percent. Other important agricultural commodities for which higher quota tions were reported were cotton, hops, seeds, hay, and tobacco. Heavy marketing of hogs in November caused prices to drop over 7 percent and brought the index for livestock and poultry down 1.7 percent, notwithstanding higher prices for cows, steers, sheep, and for live poultry in the New York market. Led by increases of 3.9 percent for fruits and vegetables and 1.8 percent for dairy products, the foods group index rose 0.1 percent in November. Higher prices were reported for apples and potatoes in most markets, and for citrus fruits, dried beans, and onions. In addi tion, fresh milk rose from 3 to 5 percent in the New York, Chicago, and San Francisco markets, and prices were also higher for butter. Minor increases were reported for cereal products, including wheat flour, rice, and oatmeal. Mutton advanced more than 10 percent, and prices were also higher for dressed poultry, eggs, lard, peanut butter, cottonseed oil, and pepper. Meats averaged 3 percent lower in November, largely because of lower prices for pork and for fresh beef at New York. Quotations for evaporated and condensed milk dropped back to current market quotations after higher opening prices had been reported. Prices for cheese, rye flour, corn meal, and canned apricots and salmon were somewhat lower than in October. Increased prices for raw jute were not reflected in the index for the textile products group index. No changes were reported in prices for hides and leather products. Fractionally higher prices for bituminous coal in some areas, to gether with increases in prices for fuel oil and gasoline from the Okla homa fields, accounted for the advance of 0.1 percent in the fuel and lighting materials group index. Prices for certain types of heating equipment were lower in Novem ber. Minor fluctuations with a slight downward tendency were re ported in prices for lumber. Declines of between 1 and 2 percent occurred in prices for linseed oil, rosin, and shellac. Plaster and tar also averaged lower during the month. A tax increase of $2 a proof gallon on alcohol, effective on Novem ber 1, caused the index for drugs and pharmaceuticals to rise 28.4 percent during the month, notwithstanding a decline of 6 percent in the price of ergot. Acetone and phosphate rock dropped about 4 percent, while ground bone and cottonseed meal advanced more than 8 percent. In the miscellaneous group of commodities average prices for cattle feed were 6.7 percent higher because of increases of over 7 percent for cottonseed meal and middlings, 6 percent for bran, and almost 3 percent for linseed meal. Higher taxes were reflected in prices for cigars and cigarettes, and boxboard also advanced. Lower prices were reported for neutral oil. Percentage comparisons of the November 1942 level of wholesale prices with October 1942, November 1941, and August 1939, with corresponding index numbers, are given in table 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 176 T Monthly Labor Review—January 1943 1.— Index Numbers of W holesale Prices by Groups and Subgroups of Commodities, November 1942 with Comparisons for October 1942, November 1941, and August 1939 able [1926=100] Group and subgroup Novem October Per Novem Per August Per cent of ber 1941 cent of cent of ber 1942 1942 change change 1939 change All commodities___________________ ___ *100.3 *1 0 0 .0 +0.3 92.5 +8.4 75.0 +33. 7 Farm products_________________ _______ Grains____________________________ Livestock and poultry_______________ Other farm products_____ __________ 110.5 92.8 121.3 108.0 109.0 91.5 123.4 104.4 +1.4 +1.4 -1 .7 +3.6 90.6 84.3 90.6 91.7 + 2 2 .0 + 1 0 .1 +33.9 +18.0 61.0 51.5 60.1 +81.1 +80.2 +83.8 +80.0 Foods________________________________ Dairy products____________________ Cereal products____________________ Fruits and vegetables_______________ M eats____________________________ Other foods____ ___________________ 103.5 + .1 + 1 .8 +• 2 95.9 103.4 109.2 89.3 98.2 115.5 95.4 +3.9 -3 .0 + .5 89.3 96.3 85.9 77.9 90.8 89.0 +15.9 +15. 5 +4.2 +30.9 +23.3 +7.8 67.2 67.9 71.9 58.5 73.7 60.3 +54.0 +63.8 +24.5 +74.4 +52.0 +59.0 Hides and leather products____ ________ Shoes______________ _____________ Hides and skins____________________ Leather___________________________ Other leather products............ ............... 117.8 126.4 116.0 101.3 115.2 117.8 126.4 116.0 101.3 115.2 0 0 0 0 0 114.1 120.5 114.0 +3.2 +4.9 + 1 .8 92.7 1 0 0 .8 +27.1 +25.4 +50.3 + 2 0 .6 +18.6 Textile products_______________________ Clothing___ ______________________ Cotton goods_______________________ Hosiery and underwear_____________ Rayon................. silk________________ Woolen and worsted goods________ Other textile p roducts.,.___ _______ 97.1 107.0 112.4 70.5 30.3 (■) 111.7 97.6 97.1 107.0 112.4 70.5 30.3 0 0 0 0 0 111.7 97.4 + .2 96.0 Fuel and lighting materials________ _____ A n t h r a c i t e . _______ ______________ Bituminous coal________________ " . . . Coke.____________________________ Electricity_______________ Y.V.W.WSS. Gas____________________ Petroleum and products.__________ I." 79.1 85,7 111.4 111.0 79.0 85.7 + .1 0 78.8 85.3 108.2 (') 60.7 79.2 60.6 Metals and metal products______________ Agricultural implements_____________ Farm machinery________________ Iron and steel_______________ ____ _ Motor vehicles_____________________ Nonferrous m etals__________________ Plumbing and heating_______________ *103.8 96.9 98.0 97.2 *1 1 2 .8 *103.8 96.9 98.0 97.2 *1 1 2 .8 8 6 .0 8 6 .0 Building materials_____________________ Brick and tile______________________ Cement___________________ Lumber___________________ IIIIIIIII Paint and paint m aterials... _________ Plumbing and heating_____________ Structural steel______________ Other building materials_____________ Chemicals and allied products___________ Chemicals_______________________ Drugs and pharmaceuticals Fertilizer materials__________________ Mixed fertilizers___________________ Oils and fats______________________ ’ Housefurnishing goods__________________ Furnishings__ ____________________ Furniture_________________________ Miscellaneous_________________________ Automobile tires and tubes______ ____ Cattle feed_________________________ Paper and pulp____________________ Rubber, crude______________________ Other miscellaneous_________ _______ Raw materials_________________________ Semimanufactured articles_______ ________ Manufactured products.___ _____________ All commodities other than farm products. All commodities other than farm products and foods_____________ 1 1 0 .1 ‘Preliminary. Data not available. 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 1 1 .2 89.5 1 0 2 .0 1 1 2 .0 1 2 2 .1 0) 93.2 (0 1 2 2 .1 (0 i) + .4 0 + .2 0 0 0 0 0 0 94.1 -1 .0 110.4 98.7 94.2 133.3 -.1 0 - .3 +3.3 91.1 97.9 105.4 67.0 30.3 0) + 6 .6 +9.3 + 6 .6 +5.2 1 0 2 .6 1 2 2 .2 6 8 .2 77.5 60.4 103.3 96.3 97.4 97.1 112.3 84.8 87.9 107.5 96.6 93.1 128.7 95.3 87.9 107.3 103.2 89.8 88.3 123.2 77.3 79.6 92.9 0 +8.9 +1.7 + .4 +3.0 -. 1 + .5 + •6 + .6 + .1 + .4 + 1 .4 + 6 .0 +2.4 + 2 .1 + 1 .2 +3.4 +5.7 + 6 .0 77.2 84.0 97.1 67.8 81.5 65.5 61.5 28.5 44.3 75.5 63.7 -+17.4 +11.4 +3.6 +3.5 + 2 .2 +21.9 +15.3 +17.5 +22.9 +9.0 +3.2 +47.7 + 22.7 +17.5 + 15.0 +34.1 +14.8 +21.5 -4 2 0 .0 +13.3 +150.0 + 19.7 +19.2 + 2 0 .1 +22.9 +20.7 +93.1 +23.5 +32.7 +17.0 +56.2 +24.3 +25.7 +25.7 +19.6 -.1 0 0 +3.1 +15.2 +3.2 + 6 .0 +5.6 + .3 93.5 + 2.5 80.1 +2.9 + .9 *95.8 *95.5 +28.4 + .4 8 8 .6 + 1.7 0 - .4 4 3.4 0 0 0 0 0 0 0 + 6.7 0 0 1 0 0 .6 105.2 95.8 87.3 67.4 120.7 1 0 2 .2 0 - .3 + 1 0 .8 +8.9 +34.3 +4.0 +9.3 +1. 9 + 2 .0 +1.7 +3.2 +8.3 +9.4 -3 .3 0 +47.9 +53.2 93.2 93.5 94.7 95.1 92.5 74.6 79.3 46.3 92.2 90.2 89.7 93.8 92.7 73.0 123.8 98.8 46.3 92.4 103.0 92.7 *99.4 *97.9 - .2 - .3 -1 .0 94.1 107.3 103.3 96.2 96.2 128.8 78.3 82.8 101.5 102.5 107.3 97.4 +43.2 +31.3 +71.6 +14.6 +6.3 72.6 72.1 96.0 104.2 75.8 86.7 51.7 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 6 8 .4 80.0 34.9 .81.3 66.5 74.5 79.1 77.9 98.6 94.2 133.1 100.7 93.2 107.3 102.9 99.5 96.2 165.4 78.6 82.8 101.5 102. 5 107.3 97.4 90.1 73.0 132.1 98.8 46.3 95.1 103. 9 92.6 *99.4 *97.9 1 0 1 .0 1 0 1 .1 111.5 6 6 .0 +9.0 +18.9 +16.0 +17.2 0 Wholesale Prices 177 Index Numbers by Commodity Groups, 1926 to November 1942 Index numbers of wholesale prices by commodity groups for selected years from 1926 to 1941, inclusive, and by months from November 1941 to November 1942, inclusive, are shown in table 2. T able 2.— Index Numbers of Wholesale Prices by Groups of Commodities [1926=100] Hides Tex Fuel Metals Build Chem icals HouseAll Farm and and furMis com tile ing and metal and nishprod Foods leather prod cella modi light mate allied ucts prod ucts prod rials prod ing neous ing ties ucts ucts ucts goods Year and month 1926_______________ 1 0 0 .0 1929_______________ 104.9 1932_______________ 48.2 1933_______________ 51.4 1936_______________ 80.9 1937_______________ 1938_______________ 1939_______________ 1940_______ _______ 1941________ ______ 1941: November__ December______ 1942: January____ . . . February--. _ _ _ March _ April-- ______ M ay___________ June__ __ July___________ August________ September______ October______ . November__ _ - 1 0 0 .0 1 0 0 .0 99.9 61.0 60.5 82.1 109.1 72.9 80.9 95.4 86.4 68.5 65.3 67.7 82.4 85.5 73.6 70.4 71.3 82.7 104.6 92.8 95.6 90.6 94.7 89.3 90.5 1 0 0 .8 93.7 94.6 96.1 98.7 98.9 99.3 99.2 101.3 1 0 2 .8 104.5 104.4 104.4 105.3 106.1 107.8 109.0 110.5 1 0 0 .8 102.4 103.4 103.5 1 0 0 .0 1 0 0 .0 83.0 70. 3 66.3 76.2 100.5 80.2 79.8 87.0 108.3 76.3 66.7 69.7 73.8 84.8 77.6 76.5 73. 1 71.7 76.2 95.7 95.7 94.4 95.8 99.4 114.1 114.8 91.1 91.8 78.8 78.4 103.3 103.3 114.9 115.3 116.7 119.2 118.8 118.2 118.2 118.2 118.1 117.8 117.8 93.6 95.2 96.6 97.7 98.0 97.6 97.1 97.3 97.1 97.1 97.1 78.2 103.5 78.0 103.6 77.7 103.8 77.7 103.8 78.0 103.9 78.4 103.9 79.0 103.8 79.0 103.8 79.0 103.8 79.0 *103.8 79.1 *103. 8 1 0 0 .8 1 0 0 .0 90.4 54.9 64.8 71.5 1 0 0 .0 1 0 0 .0 1 0 0 .0 94.0 73.9 72.1 78.7 94.3 75.1 75.8 81.7 95.2 90.3 90.5 94.8 103.2 82.6 77.0 76.0 77.0 84.6 86.3 88.5 94.3 77.8 73.3 74.8 77.3 82.0 86.3 78.6 77.1 78.6 87.3 107.5 107.8 89.8 91.3 1 0 0 .6 1 0 1 .1 87.3 87.6 92.5 93.6 109.3 96.0 97.0 97.1 97.1 97.3 97.2 96.7 96.2 96.2 96.2 99.5 102.4 102.5 89.3 89.3 89.7 90.3 90.5 90.2 89.8 88.9 96.0 96.7 97.6 98.7 98.8 98.6 98.7 99.2 99.6 95.4 71.4 77.0 86.7 1 1 0 .1 110.5 1 1 0 .2 1 1 0 .1 1 1 0 .1 110.3 110.3 110.4 110.4 1 1 0 .1 89.7 8 6 .8 1 0 2 .6 1 0 2 .8 102.9 102.9 1 0 2 .8 102.7 102.5 102.5 102.5 1 0 0 .0 82.6 64.4 62.5 70.5 8 8 .8 8 8 .6 90.1 1 0 0 .0 95.3 64 8 65.9 80.8 *1 0 0 .0 *100.3 * Preliminary. T able 3 . — Index Numbers of Wholesale Prices by Special Groups of Commodities [1926=100] Baw Year and month mate rials 1926___________ 1929___________ 1932___________ 1933 1936 1937 1938 1939 1940 1941 1 0 0 .0 Semimanufactured arti cles Man ufac tured prod ucts All com mod ities other than farm prod ucts 1 0 0 .0 1 0 0 .0 1 0 0 .0 All com modi ties other than farm prod ucts and foods 1 0 0 .0 93.9 59.3 65.4 75.9 94, 5 93.3 70.3 68.3 70.5 69.0 82.0 80.7 _______ 84.8 85.3 72.0 75.4 70.2 77.0 71.9 79.1 83. 5 86.9 87. 2 8 6 .2 82.2 80.6 80.4 79.5 81.6 80.8 89.1 88.3 85.3 81.7 81. 3 83.0 89.0 92.7 93.5 1941: November__ 97.5 55.1 56. 5 79.9 90.2 89.7 93.8 Preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91.6 70.2 71.2 79.6 Year and month 1941—Continued. December___ 1942: January____ February___ M arch--....... . A p r il.___ M ay_____ -J u n e ____ _July________ August_____ September__ October____ November__ All com modi ties other than farm prod ucts and foods Baw mate rials Semimanufactured arti cles M an ufac tured prod ucts All com mod ities other than farm prod ucts 92.3 90.1 94.6 93.3 93.7 96.1 97.0 98.2 91.7 96.4 94.8 92.0 97.0 95.5 92.3 97.8 96,2 92.8 98.7 97.2 92.9 99.0 97.4 92.8 98.6 97.1 92.8 98.6 97.0 92.7 98.9 97.5 92.9 99.2 97.7 92.7 *99.4 *97.9 92.6 *99.4 *97.9 94.6 94.9 95.2 95.6 95.7 95.6 95.7 95.6 95.5 *95.5 *95.8 1 0 0 .0 99.7 99.8 1 0 0 .1 1 0 1 .2 1 0 2 .2 103.0 103.9 178 Monthly Labor Review—January 1943 The price trend for specified years and months since 1926 is shown in table 3 for the following groups of commodities: Raw materials, semimanufactured articles, manufactured products, commodities other than farm products, and commodities other than farm products and foods. The list of commodities included under the classifications “Raw materials/’ “Semimanufactured articles,” and “Manufactured products” was shown on pages 10 to 12 of Wholesale Prices, December and Year 1941 (Serial No. R. 1434). Weekly Fluctuations Weekly changes in wholesale prices by groups of commodities during October and November 1942 are shown by the index numbers in table 4. These indexes are not averaged to obtain an index for the month but are computed only to indicate the fluctuations from week to week. T able 4.— Weekly Index Numbers of Wholesale Prices by Commodity Groups, October and November 1942 [1926=100] Commodity group All commodities___ ______ Farm products_____________ ____ ____ Foods_____ Hides and leather products . Textile products_____ ___ Fuel and lighting materials Metals and metal products Building materials'__ ___ Chemicals and allied products Housefurnishing goods-Miscellaneous____________ Nov. 28 Nov. 21 Nov. 14 Nov. 7 Oct. 31 Oct. 24 Oct. 17 Oct. 10 *1 0 0 .1 *1 0 0 .1 *1 0 0 .1 *99.7 *99.7 *99.7 *99.6 *99.8 *99.7 110.9 103.3 118.4 96.6 79.7 109.8 102.9 118.4 96.6 79.6 109.1 103.0 118.4 96.6 79.6 108.7 103.1 118.4 96. 5 79.6 107.9 103.1 118.4 96 5 79.7 108.9 103.3 118 4 96 6 79.7 108.7 103.0 118 4 1 1 0 .8 103.6 118.4 96.6 79.7 110.7 103.0 118.4 96.6 79.7 *103.9 *103. 9 *103.9 *103.9 *103. 9 *103.9 *103.9 *103 0 1 1 0 .2 1 1 0 .2 1 1 0 .2 1 1 0 .2 1 1 0 .2 110 . 2 no 2 110 6 99.5 99.5 99.5 96.2 96.1 96 1 96 2 96.1 104.1 104.1 104.1 104.1 104.1 104.1 104.1 104.1 89.9 89.9 90.0 88.7 88.5 88.3 88.4 88.4 Raw materials . - ___ 103.8 103.8 103.7 103.2 102.7 102.5 1 0 2 .0 1 0 2 .6 Semimanufactured articles___ 92.5 92.5 92.5 92.5 92.5 92.5 92.5 92.8 Manufactured products *99.7 *99.7 *99.7 *99.3 *99.5 *99.6 *99.7 *99.7 All commodities other than farm products________ *97.8 *97.8 *97.8 *97.5 *97.7 *97.7 *97.8 *97.9 All commodities other than farm products and foods_____ *96.1 *96.1 *96.1 *95.7 *95.7 *95.6 *95.6 *95.7 * Preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Oct. 3 79.7 *102 9 104.1 88.4 102.4 92.8 *99.6 *97.8 *95.7 Trend o f Employment and Unemployment SUMMARY OF REPORTS OF EMPLOYMENT FOR NOVEMBER 1942 THE number of employees in civil nonagricultural establishments declined by 41,000 between mid-October and mid-November, bringing the level down to 38,437,000. Nevertheless, this figure was larger than the total for any other month except October and exceeded the November 1941 level by 2,511,000. These figures do not include proprietors of unincorporated businesses, self-employed persons, un paid family workers, domestics employed in private homes, personnel of the WPA, NYA, and CCC, and the uniformed personnel of the Army, Navy, Marine Corps, and Coast Guard. They are based on preliminary November and revised October reports. Construction employment fell more than 10 percent during the month (218,000) largely because of declines on Federally-financed projects. Small employment declines were also reported for the finance-service-miscellaneous group, the transportation-public-utility group, and the mining group. Manufacturing employment increased contraseasonally by 123,000, and trade employment expanded sea sonally by 76,000. Government civilian employment increased by 41,000. The increase of 1,873,000 in manufacturing employment from November 1941 was about three-fourths of the total gain in nonagricul tural establishments during this period and reflected to a great extent the shift from peacetime production to war production. The Federal, State, and local government group had about 25 percent (1,178,000) more workers, largely as a result of expansion in the War and Navy Departments and in other war agencies. The transportation-publicutility group showed a gain of 135,000; trade, 373,000; construction, 281,000; and mining, 87,000. The finance-service-miscellaneous group also showed a small gain (66,000). Industrial and Business Employment About two-thirds of the 152Tnanufacturing industries^surveyed by the Bureau of Labor Statistics reported employment and pay-roll gains over the month interval, reflecting the mounting tide of produc tion in war industries. Of the 16 nonmanufacturing industries sur veyed, 3 reported employment gains and 9, pay-roll increases. In all manufacturing industries combined, there was an increase in employment of 0.8 percent in contrast to a seasonally expected decline of 1.7 percent. The corresponding gain in weekly wage disbursements was 3.8 percent as against a normally expected decline for this time of the year of 3.2 percent. These gains brought the indexes in Novem179 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 180 Monthly Labor Review—January 1943 ber to 156.6 percent of the 1939 average for employment and 270.8 percent for pay rolls. Compared with November 1941, the gains were 13.1 percent in employment and 46.4 percent in pay rolls, the greater gain in pay rolls being due to increases in basic wage rates, to longer hours worked, to overtime premiums, and to continued expansion in war industries, where relatively higher wage scales prevail. After June 1940, when the United States actually shifted to a war economy, factory employment increased 53 percent and corresponding weekly pay rolls rose 152 percent. The gains in the durable-goods group of manufacturing industries were even more marked, due to the concentration of war work in these industries, many of which had converted their facilities from peacetime to war production. The October-November gains for this group were 1.7 percent in number of wage earners and 4.9 percent in weekly wages. The corresponding increases between November 1941 and November 1942 were 22.7 percent and 61.2 percent. The gains between June 1940 and November 1942 were 83 percent in number of wage earners and 212 percent in weekly wage disbursements. The nondurable-goods group, which has been most seriously affected by wartime restrictions, curtailments, and shortages, because of less conversion to war produc tion, showed a decline of 0.3 percent in employment and a gain of 1.5 percent in pay rolls over the month interval, with corresponding in creases over the year interval of 2.6 percent and 23.2 percent, respectively. Among the many war industries showing substantial employment gains over the month were shipbuilding, aircraft, engines, automobiles (largely converted to the manufacture of war equipment), radios, electrical equipment, shell loading, ammunition, and explosives. Among durable-goods industries reporting declines, largely because of material shortages coupled with Government restrictions, were hard ware, agricultural implements, typewriters, clocks, silverware and plated ware, sawmills, planing mills, furniture, and tin cans and other tinware. Seasonal declines were reported by firms manufacturing brick, tile and terra cotta; men’s clothing; millinery; ice cream; beverages; canned goods; and cottonseed oil-cake-meal. In anthracite mining employment increased only slightly over the month (0.3 percent) but pay rolls advanced sharply (2.4 percent) as average weekly hours increased. Over the year interval employment fell off 7.5 percent, while pay rolls rose 18.5 percent, reflecting a labor shortage on the one hand and a longer workweek on the other. Relatively small employment declines over the month and large losses over the year were also reported in bituminous-coal mining, metal mining, and quarrying and nonmetallic mining, indicating a similar situation with respect to the labor supply. Metal mining was the only one of the three last-named industries to show a pay-roll gain over the month, but all of them showed large pay-roll gains over the year interval as a result of wage-rate increases and more hours worked. The Government order closing gold mines resulted in a 30.1-percent employment decline between mid-October and mid-November in this branch of metal mining, with the hiring of some of the gold miners and of furloughed soldier-miners by copper-mine operators contribut ing to the gain of 7.8 percent in the number of copper miners atwork. Lead and zinc mines increased employment by 3.9 percent and iron mines reduced their forces seasonally by 1.9 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trend of Employment and Unemployment 181 Employment decreases over the month, largely seasonal, were reported in all of the service industries, the most pronounced being in dyeing and cleaning (4.2 percent) and laundries (1.6 percent). In the electric light and power industry, employment dropped 1.6 percent, continuing the uninterrupted series of monthly declines which began in August 1941. Telephone and telegraph companies reported a slight employment decline since October, and street railway and bus companies a slight employment increase. Corresponding pay rolls rose 0.5 and 2.7 percent, respectively, reflecting increased overtime, particularly in the latter industry where the demand for public transportation continued. In retail trade the employment and pay-roll gains over the month of 2.1 and 2.8 percent, respectively, were better than the average November increases, department stores having increased employ ment seasonally by 9.5 percent; variety stores, 7.3 percent; jewelry stores, 5.4 percent; men’s and boys’ clothing, 4.2 percent; family clothing, 3.6 percent; and women’s clothing, 2.3 percent. Retail automobile dealers continued their employment curtailment with an 0.7-percent cut, while tire and battery shops took on 0.9 percent more T a b l e 1 — Employment, P ay Rolls, and Earnings in A ll Manufacturing Industries Combined and in Nonmanufacturing Industries [Preliminary! Employment index Industry No vem ber 1942 No Octo vem ber ber 1942 1941 All manufacturing industries com b in ed 1________ -- _ _________ (I 939=101» 156.6 155.3 138.4 Class I steam railroads 2 _____ ___ (1936-89=1 00) 129.1 I 129. 5 117.8 Coal mining: A n th racite__ _ _ --------Bituminous___ ______________ Metalliferous mining___ _-. . __ Quarrying and nonmetallic mining__ Crude-petroleum production_______ Public utilities: Telephone and telegraph _______ Electric light and power________ Street railways and busses______ Trade: Wholesale------- -------- ----------Retail- __________________ Hotels (year-round) 4---------------------Laundries _ . _____________ - Dyeing and cleaning___________ Brokerage s--- ----------------------------Insurance 5______________________ Building construction s ____________ Water transportation 6 - ________ - a 939=10 5) 46.3 46.4 90.6 89.4 77.7 77.4 48.5 50.0 55.4 55.0 92.9 81.3 76.1 89.8 96.6 95.3 114.0 119.6 - .7 - 1 .1 -4 .5 80.8 93.3 82.6 75.9 Pay-roll index No vem ber 1942 No Octo vem ber ber 1942 1941 Average weekly earnings No vem ber 1942 No Octo vem ber ber 1942 1941 a 939=10 5) 270.8 260.9 185.0 $39.99 $38. 86 $30. 93 (3) (3) (3) 50.2 95.1 79.5 52.6 60.9 (1939=10 5) 49.5 48.4 41.8 124.1 124.8 116.4 106.9 104.5 89.8 66.7 68.9 57.5 64.2 63.7 62.6 35. 09 36. 84 43.05 33. 94 41. 74 34.36 36. 56 41.93 34. 01 42.26 27. 38 32.64 35.74 27.66 38.79 90.1 93.4 70.2 129.0 108.6 97.8 118.3 115.2 78.5 33.97 40.46 41.97 33.67 40. 71 40. 98 32.08 37. 6 f 36. 42 94.6 91.6 96.4 98.5 103.2 93.2 118.9 101.9 112.5 93.0 +2.4 -17.3 + .4 +2.7 - . 9 - 1 0 .6 +7.3 +76.9 37.13 23.18 18. 85 21.81 25.17 44. 00 39.02 45. 72 (3) 36. 52 23. 36 18.60 21. 57 25.23 43.24 38. 26 45. 36 33. 44 (3) 96.3 96.0 90.0 99.1 94.6 103.0 96.1 104.3 95.6 115.9 108.9 118.3 124.8 117.2 107.5 -1 .3 -23.1 + 1 .0 + .9 - 1 .2 -4 .5 -1 .4 -31.0 -3 .7 77.4 +10.7 74.6 « 128.4 111 . 1 95.3 (3) 0 21.88 16. 7" 19. 44 22. Of 40. 22 37. 71 35. 91 (3) 1 Employment and pay-roll indexes for manufacturing are now based on 1939 average as 100 and are ad justed to 1940 and preliminary 1941 data supplied by Bureau of Employment Security. Not comparable with previously published indexes. 2 Preliminary; source—Interstate Commerce Commission. 3 Not available. 4 Cash payments only; the additional value of board, room, and tips cannot be computed. t Indexes of employment and pay rolls not available. Percentage changes from October to November 1942, September to October 1942, and November 1941 to November 1942 substituted. » Based on estimates prepared by the U. S. Maritime Commission covering steam and motor merchant vessels of 1,000 gross tons or over in deep-sea trades only. Pay-roll data include war bonuses and value of subsistence and lodging. Pay-roll indexes on 1929 base not available. Percentage changes from October to November 1942, September to October 1942, and November 1941 to November 1942 substituted. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 182 Monthly Labor Review—January 1943 employees. Electric-appliance stores and radio dealers, as well as lumber yards, decreased employment by 3.0 percent, and fuel and ice dealers, by 7.2 percent. Over the year interval, retail trade as a whole showed an employment loss of 6.2 percent. The more important retail groups showing pronounced employment and pay-roll decreases, because of Government restrictions, were furniture and housefurnishings (25.6 and 13.8 percent, respectively), automotive (40.7 and 32.0 percent), and lumber and building materials (17.2 and 3.6 percent). In wholesale trade, employment decreased slightly over the month (0.2 percent), but pay rolls increased (1.5 percent). Small employ ment decreases were reported by all of the important wholesale groups, except farm products, which reported a marked percentage loss (12.6). Sharp employment declines over the year were shown by wholesale trade as a whole and by the various important wholesale groups, but they were coupled for the most part with large pay-roll gains. The automotive group reported the largest employment de cline over the year (19.8 percent) coupled with a pay-roll decrease (10.4 percent). Public Employment Employment in the regular Federal services (executive, legislative, and judicial) aggregated 2,780,000 in November, increasing 53,500 over October and 1,204,000 over November 1941. From October to November, employment in the War and Navy Departments and war emergency establishments showed a rise of 67,300, which was partially offset by a decline in nonwar establishments of 13,800. Federally financed construction and shipbuilding showed declines of 26,500 for employment and $8,500,000 for pay rolls. Gains reported for shipbuilding were offset by declines on building and water and sewer construction because of the completion of certain projects, and by seasonal declines on street and road projects. Of the 2,175,000 building-trades workers engaged on all Federally financed projects, 2,083,000, or 96 percent, were engaged on war projects. Oniy 14 percent were on the direct pay roll of the Federal Government, however, the others being employed by contractors and subcontractors. Data are not available for the student work program of the NYA, but the war production training program showed a decrease of 450 trainees from October to November. Reductions on the WPA and CCC programs of 18,300 and 400 persons, respectively, left personnel aggregating 363,000 and 1,650 in November. Over the past year the WPA has dropped 693,400 workers and the CCC, 169,800. For the regular Federal services, data for the legislative, judicial, and force-account employees are reported to the Bureau of Labor Statistics by the respective offices; for the executive-service employees, data are reported through the Civil Service Commission. The Bureau of Labor Statistics receives monthly reports on employment and pay rolls for the various construction projects financed wholly or par tially by Federal funds directly from the contractors and subcon tractors, and for the NYA, WPA, and CCC programs from the respec tive agencies. A summary of employment and pay-roll data for the regular Federal services, for construction projects financed wholly or partially from Federal funds, and for other Federal programs is given in table 2. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 183 Trend of Employment and Unemployment T able 2.—Employment and P ay Rolls in Regular Federal Services and on Projects Financed Wholly or Partially From Federal Funds [Subject to revision] Pay rolls Employment Service or program Novem ber 1942 October 1942 Novem ber 1941 November 1942 October 1942 November 1941 Federal services: Executive 1_______________ 2, 770,559 2,717,093 1, 567, 251 $456,920, 562 $449,392,252 $239,318, 111 654,806 2,582 677,693 2,664 2 ,6 6 6 675, 543 Judicial__________________ 1,360, 645 1,379,162 6,320 6,319 6 ,2 0 2 1, 379, 556 Legislative. ______ ______ Construction projects: Financed from regular Federal 956,329 399,366,164 405,197,271 158, 984,626 appropriations 2__________ 1,990, 511 2,019,003 815,820 383,057,185 389,006,437 139,963, 276 W ar__________________ 1,900,801 1,928,361 19,021, 350 16,190,834 Other_________________ 89,710 90,642 140, 509 16,308,979 10,656,779 12,457,123 12,167,033 79,412 77,628 Public housing 3___________ 77,826 13,308 1, 225,048 211 1,269,986 9,746 9,291 War public works_____ . . . . 3,590,705 19, 671,588 95,053 95,339 21, 528 17,248,235 Financed by RFC 4________ 3, 313,032 19,308,117 93,222 16,936,106 W ar__________________ 93,232 19, 732 277,673 312,129 363,471 Other_________________ 1,821 2,117 1,796 Other programs: National Youth Administra9,883,476 2,774, 345 132,033 tion 5_______________ 651,616 (6) (6) 2,375,632 376,923 342,641 Student work program__ 46,308 (8) (6) War production training 7,507,844 2,397,422 2,6 6 8 ,947 program 7_____ _____ 85, 274 85, 725 308,975 Work Projects Administra60, 525, 210 25,627,385 23,144,108 381,295 1,056,401 tion projects_____________ 363,005 18, 014,020 9, 250,000 W ar__________________ 123, 812 324,107 («) (6) 42,511,190 16,377,385 732,294 Other___ ____ ______ 257,483 (6) (6) 8,242,555 431,870 1,650 2,051 171,493 296,680 Civilian Conservation Corps.. 1 Includes force-account employees also included under construction projects, and supervisory and tech nical employees included under NYA, WPA, and CCC. Data for public employment offices which were federalized in January 1942 are included for October and November 1942. Data for all months include for first time certain employees of the Federal Security Agency. 2 Includes new Federal ship construction. 3 Includes all Federal housing projects, including those formerly under the USHA. < Includes employees and pay roll of the RFC Mortgage Co. 5 Beginning July 1942 the National Youth Administration was considered a training program for war work, rather than a work-relief program. Value of maintenance is included in the pay-roll data for November 1941 but excluded from October and November 1942. 6 Not available at this time. 7 Called the out-of-school work program prior to July-1942. D ET A IL E D R EPO RTS FOR IN D U STR IA L AND BUSINESS EM PLO Y M EN T, OCTOBER 1942 Estimates of Nonagricultural Employment ESTIMATES of civil employees in nonagricultural establishments by major groups are given in table 1. With the exception of the trade and finance-service-miscellaneous groups, they are not comparable with estimates published in the September 1942 or prior issues of the Monthly Labor Review. Revisions for the years 1929 to 1939 are contemplated, and comparable figures for the months from January 1939 to July 1942 were given in the October 1942 issue of the Monthly Labor Review. The estimates are based on reports of employers to the United States Bureau of Labor Statistics; on data made available by the Bureau of Employment Security of the Social Security Board and the Bureau of Old-Age and Survivors Insurance, covering employment figures reported under the State unemployment compensation programs and the Federal old-age and survivors insurance system; and on information supplied by other Government agencies, such as the Interstate Commerce Commission, Civil Service Commission, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 184 and the Bureau of the Census. They do not include military per sonnel, emergency employment (such as Y PA, NYA, and CCC), proprietors, self-employed persons, unpaid family workers, and domestics. . Estimates of total nonagricultural employment have been discon tinued, as they have recently been made available through the Census Bureau’s Monthly Report on the Labor Force. Estimates of em ployees in nonagricultural establishments, by States, are given each month in the Bureau of Labor Statistics mimeographed release on employment and pay rolls. T able 1 .— Estimates of Employment in Nonagricultural Establishments, by Industry Divisions 1 [In thousands] Industry division October 1942 Septem (prelimi ber 1942 nary) Change, Septem ber to October 1942 October 1941 Change, October 1941 to October 1942 TotaM__________ 38, 555 38, 348 + 207 36, 053 +2, 502 M anufacturing... . . Mining____ Contract construction and Federal force-account construction____ . Transportation and public utilities. . Trade. _ . . . . . . Finance, service, and miscellaneous Federal, State, and local government (civil employees)____________________ _ . 15, 297 901 15, 233 910 +64 -9 13, 597 988 +1,700 -8 7 2,089 3,539 0, 679 4,325 2,185 3, 542 6,561 4,397 -96 -3 +118 -7 2 2, 204 3| 424 7, 070 4,256 —115 +115 -391 +69 5,725 5,520 +205 4, 514 + 1 ,2 1 1 1 Comparable series January 1939 to July 1942 in October 1942 Monthly Labor Review. Estimates exclude proprietors of unincorporated businesses, self-employed persons, domestics employed in private homes, public emergency employees (WPA, NYA, and CCC), and personnel in the armed forces. industrial and Business Employment Monthly reports on employment and pay rolls are available for 152 manufacturing industries; 16 nonmanufacturing industries, including private building construction; water transportation; and class I steam railroads. The reports for the first 2 of these groups—manu facturing and nonmanufacturing—are based on sample surveys by the Bureau of Labor Statistics. The figures on water transportation are based on estimates prepared by the Maritime Commission, and those on class I steam railroads are compiled by the Interstate Com merce Commission. The employment, pay-roll, hours, and earnings figures for manufac turing, mining, laundries, and dyeing and cleaning cover wage earners only, but the figures for public utilities^ brokerage, insurance, and hotels relate to all employees except corporation officers and execu tives, while for trade they relate to all employees except corporation officers, executives, and other employees whose duties are mainly supervisory. For crude-petroleum production they cover wage earners and clerical field force. The coverage of the reporting samples for the various nonmanufacturing industries ranges from approxi mately 25 percent for wholesale and retail trade, dyeing and cleaning, and insurance to approximately 80 percent for public utilities, and 90 percent for mining. The general manufacturing indexes are computed from reports supplied by representative establishments in 152 manufacturing in dustries surveyed. These reports cover more than 65 percent of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trend of Employment and Unemployment 185 total wage earners in all manufacturing industries of the country and about 80 percent of the wage earners in the 152 industries covered. Data for both manufacturing and nonmanufacturing industries are based on reports of the number of employees and the amount of pay rolls for the pay period ending nearest the 15th of the month. The average weekly earnings for individual industries shown in table 3 are computed by dividing the weekly pay rolls in the reporting establishments by the total number of full- and part-time employees reported. As not all reporting establishments supply information on man-hours, the average hours worked per week and average hourly earnings shown in that table are necessarily based on data furnished by a slightly smaller number of reporting firms. Because of variation in the size and composition of the reporting sample, the average hours per week, average hourly earnings, and average weekly earnings shown may not be strictly comparable from month to month. The sample, however, is believed to be sufficiently adequate in virtually all in stances to indicate the general movement of earnings and hours over the period shown. The average weekly hours and hourly earnings for the groups are weighted arithmetic means of the averages for the individual industries, estimated employment being used as weights for weekly hours and estimated aggregate hours as weights for hourly earnings. The average weekly earnings for the groups are now com puted by multiplying the average weekly hours by the corresponding average hourly earnings and are not comparable with previously published figures, which were computed by dividing total weekly pay roll by total employment without any formal weighting of figures for the component industries. EMPLOYMENT AND PAY-ROLL INDEXES, AVERAGE HOURS, AND EARNINGS The revised manufacturing indexes in the accompanying tables are presented for the first time with the corresponding employment aggregates. The estimates are based upon the industry classification of the 1939 Census of Manufactures and of the Standard Industrial Classification Manual. As a result of the change of classification, the present figures for the major manufacturing groups should not be compared with previously published data. Revised estimates on the current basis will be available in mimeographed form by months from January 1939 forward. To attain comparability, it has been necessary to shift certain in dustries from one group to another. For example, the gray-iron and malleable-iron foundry industries, and the power-boilers industry are now considered part of the “iron and steel and their products” group rather than of the “machinery” group as heretofore. In addition to changes of this type, subdivisions of certain groups have been intro duced. For instance, the “paper and allied products” group and the “printing, publishing, and allied industries” group, now shown sepa rately, appeared as a single classification in previous publications. The figures relating to all manufacturing industries combined, to the durable- and nondurable-goods divisions, and to the major industry groups, have been adjusted to conform to levels indicated by final 1940 and preliminary 1941 data released by the Bureau of Employment Security of the Federal Security Agency. The Bureau of Employ ment Security data referred to are (a) employment totals reported by employers under State unemployment-compensation programs, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 186 and (b) estimates of the number of employees not reported under the programs of some of these States, which do not cover small establish ments. The latter estimates were obtained from tabulations pre pared by the Bureau of Old Age and Survivors Insurance, which obtains reports from all employers regardless of size of establishment T able 2.—Employment and P a y Rolls in Manufacturing and Nonmanufacturing Industries 1 MANUFACTURING [Manufacturing indexes are based on 1939 average as 100. For the individual industries they have been adjusted to the 1939 Census of Manufactures and for the groups to final 1940 and preliminary 1941 Bureau of Employment Security figures. Comparable series for earlier months available on request] Industry Indexes 2 of— Estimated ’ num Employment Pay rolls ber of em ploy- Octo Sep Sep Au Octo tem Au tem gust ees, ber ber gust October 1942 ber ber 1942 1942 1942 1942 1942 2 1942 Thou sands All manufacturing_______ ___________________ 12,721 155.3 Durable goods_____ ____________________ 7,153 198.1 Nondurable goods_______________ ________ 5, 569 1 2 1 .6 Durable goods Iron and steel and their products ______________ 1,636 165.0 Blast furnaces, steel works, and rolling mills A _ 525 135.2 Steel castings 3 _____ ______________ __ ___ 79.6 264.7 Cast-iron pipe and fittings_________________ 2 0 .1 121.5 Tins cans arid other tinware__ ______ .. 31.3 98.5 Wire drawn from purchased r o d s __________ 33.8 154.0 Wirework.. ___ _______ _____ . _ 31.5 103.5 Cutlery and edge tools______________ 2 0 .2 131.2 Tools (except edge tools, machine tools, files and saws)___________ ____ _____ _____ __ 26.6 173.7 Hardware____________________________ _ 42.2 118.5 Plumbers’ supplies___________________ . _ 82.2 20.3 Stoves, oil burners, and heating equipment 49.3 106.9 Steam and hot-water heating apparatus and steam fittings.._________________________ 54.1 178.6 Stamped and enameled ware and galvanizing 75.0 134.9 Fabricated structural and ornamental metal work _______________________ _ 187.5 6 6 .6 Metal doors, sash, frames, molding, and trim 10.7 138.2 Bolts, nuts, washers, and rivets_____ _____ 25.9 181.4 Forgings, iron and steel____ _____ _____ 37.4 243.6 Wrought pipes, welded and heavy riveted . 2 0 .0 239.5 Screw-machine products and wood screw s___ 47.9 283.1 Steel barrels, kegs, and drums_____________ 6.9 114.1 Electrical machinery_______________ _ . 154.5 194.1 123.2 152.1 191.1 121.3 260.9 350.2 173.6 252.5 337.2 169.6 245.8 327.3 166.1 163.6 137.0 260.2 163.7 138.9 256.6 126.6 112.7 147.4 255.5 199.7 417.8 190.2 149.0 212.7 165. 2 224.2 251.9 196.6 408.6 207.4 151.9 132.9 263.1 200.7 431.4 202.7 137.2 221.3 172.5 242.8 161.9 225.6 173.3 118.8 79.5 98.8 176.1 120.7 80.9 97.6 304.0 209.9 126.1 167.2 289.8 194.6 113.7 143.6 292.7 197.6 118.9 141.4 171.4 134.5 164.4 134.7 307.5 227.2 298.3 208.9 279.9 213.2 182.3 132.1 177.7 236.4 222.9 277.3 114.2 180.5 133.6 173.9 232.6 319.0 215.9 305.4 431.2 431.1 489.7 180.7 295.5 291.6 390.1 420.6 462.2 169.1 290.2 203.0 291.1 390.5 362.0 460.6 164.5 1 2 1 .6 110.7 150.4 101.7 130.6 1 0 2 .2 2 1 2 .6 274.1 113.6 2 1 2 .8 2 0 2 .6 229.1 220.3 2 1 2 .0 372.1 358.9 334.8 211.7 149.2 114.6 131.2 281.2 71.9 151.8 207.4 217.5 144.6 114.1 133.3 280.3 75.3 145.8 205.2 214.9 147.6 136.1 281.3 74.0 142.8 361.8 371.3 211.4 186.3 343.0 354.8 198.4 163.5 218.7 510.8 124.9 255.9 343.2 352.1 202.4 182.5 216.2 540.6 118.6 235.6 139.6 135. 5 116.7 128.2 132.0 107.3 120.9 127.8 99.6 190.7 236.4 157.7 188.8 230.0 149.7 Transportation equipment, except automobiles___ 1,768 1113.8 1062.9 1015. 0 2039.1 1976. 8 Motorcycles, bicycles, and parts..... ................. 9.2 131.8 135.5 141.6 216.3 213.4 1849.2 232.7 594 Machinery except electrical________ 1,119 Machinery and machine-shop products. . . 449 T ractors 4 ...................... ...... ... 46.7 Agricultural machinery, excluding tractors4.. 31.9 Textile machinery___________ .. 28.7 Pumps and pumping equipment . . . 6 8 .1 Typewriters____________ 11.7 Cash registers, adding and calculating machines 29.9 Washing machines, wringers, and driers, do mestic_____________________ 10.4 Sewing machines, domestic and industrial___ 1 0 .6 Refrigerators and refrigeration equipm ent......... 41.0 2 2 2 .0 1 2 0 .0 2 2 2 .6 531.3 129. 5 260.1 2 1 0 .6 259.8 180.7 Automobiles________ 478 118.8 114.8 1 1 0 .1 192.4 183.3 176.5 Nonferrous metals and their products Primary smelting and refining___ Clocks and watches . Jewelry (precious metals) and jewelers’findings. Silverware and plated ware............... See fo o tn o tes a t end of tab le. 371 36.5 25.9 16.3 11.5 162.0 131.9 127.8 113.2 94.6 161.5 130.7 128.6 115.0 96.0 161.1 132.2 128.2 114.9 95.2 267.3 196.9 229.8 160.4 145.2 259. 2 189.8 224.6 155.2 138.5 256.1 189.7 221.3 147.5 143.2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trend of Employment and Unemployment 187 T able 2.—Employment and P a y Rolls in Manufacturing and Nonmanufacturing I ndustries— Continued M A N U F A C T U R IN G —C ontinued Industry Indexes of— Estimated num Employment Pay rolls ber of em ploy- Octo Sep Au Octo Sep Au tem gust ees, tem gust ber ber ber October 1942 ber 1942 1942 1942 1942 1942 1942 Thou Nonferrous metals and their products—Continued. sands Lighting equipment-- - _ ___ ___ _ 21.2 Sheet-metal work_________________________ 28.0 Lumber and timber basic products__ ________ 484 Sawmills..____ ________ _______ __________ 295 Planing and plywood mills___ _ ____ . .. 88.2 Furniture and finished lumber products________ 350 Mattresses and bedsprings.......................... __ 15.7 Furniture_______________________ _______ 173 \\ ooden boxes, other than cigar . _________ 32.1 Caskets and other morticians goods-.. ______ 11.9 Wood preserving_____________ ___________ 7.7 Wood, turned and shaped-.- - _ _ ______ .. 23.1 Stone, clay, and glass products . . . ......................... 354 Glass_______________________ ___________ 81.6 Glass products made from purchased glass____ 11.7 Cement ______ ... . . . _____ . . . 29.5 Brick, tile, and terra cotta____ _____ _ 61.8 Pottery and related products__ ____ ______ 45.5 Gypsum________________________________ 4.6 Wallboard and plaster (except gypsum) and mineral wool _______ . . . _ _____ . . . . 10.9 Lime_______ ______ _________ ________ 10.1 Marble, granite, slate, and other products____ 13.7 Abrasive w h eels.-._________ ____________ 18.4 Asbestos products_____ ________ ________ 21.6 Nondurable goods Textiles and finished textile products____________ 2,097 Textile-mill products and other fiber manufactures. 1, 255 Cotton manufactures except smallwares......... 505 Cotton sm allwares_______________________ 17.9 Silk and rayon goods___________ . ____ _ 99.7 Woolen and worsted manufactures, except dye ing and finishing_______________ _______ 177 Hosiery_________________________________ 124 Knitted cloth. ___ . _ _____ __ ___ 11.7 Knitted outwear and knitted gloves______ _ 30.2 Knitted underwear________________ ■_______ 44.7 Dyeing and finishing textiles, including woolen and worsted____________________________ 70.0 Carpets and rugs, wool___ ____ ____________ 23.1 Hats, fur-felt______ ________________ - __ 8.9 Jute goods (except felts)___________________ 3.9 Cordage and twine__________________ ____ 15.9 Apparel and other finished textile products.._____ 843 Men’s clothing______________ ____________ 242 Shirts, collars, and nightwear_________ ____ 66.1 Underwear and neckwear___________ ____ 13.9 Work shirts_____________ . . . . ________ 18.8 Women’s clothing_________________ ______ 253 Corsets and allied garments________________ 17.5 Millinery___ _______________ . _ _____ 20.8 Handkerchiefs___________________________ 4.2 Curtains, draperies, and bedspreads... . . . .. 16.8 Housefurnishings, other than curtains, etc____ 16.1 Textile bags______ ________________ . ... 15.5 Leather and leather products_______ _________ 350 Leather_____________ __________________ 48.4 Boot and shoe cut stock and findings____ .. 18.0 Boots and shoes________ ______ ________ 199 Leather gloves and m itte n s-----------------------14.6 Trunks and suitcases____ _______ ________ 15.8 Food and kindred products__ _________ . _ __ 1,125 Slaughtering and meat packing________ ___ 174 Butter__________________________ _______ 21.3 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103.4 149.5 115.1 102. 5 121.4 106.6 85.4 108.4 126.5 95.2 68.5 105.0 120.7 117.0 116.6 123.9 108.9 137.3 93.3 102.8 149.7 117.5 105.0 122.8 107.9 84.7 107.2 128.3 93.4 109.3 107.1 121.2 118.9 113.8 127.3 111.4 134.0 92.7 107.2 151.3 120.8 108.5 123.8 108.4 88.3 107.0 127.1 91.1 116.8 110.2 121.5 117.7 116.9 127.5 114.5 132.1 95.0 163.8 238.9 179.3 163.0 174.7 162.3 116.6 164.9 197.4 130.4 169. 4 157.1 172.4 163.8 157.3 167.3 155.2 183.8 144.8 158.5 217.2 173.9 158.4 168.1 152.7 104.6 154.5 190.4 113.8 178.0 150.4 162.3 147.1 141.7 168.7 152.0 172.5 131.5 170.9 228.0 180.1 164.1 174.1 154.1 115.5 154. 3 190.5 113.0 186.7 154.2 163.4 151.7 145.3 107.5 153.9 173.0 134.2 134.3 107.1 73.8 238.0 135.8 134.3 109.3 73.7 228.3 134.5 135.3 112.3 74.7 216.8 136.0 201.7 164.0 90.1 365.3 226.1 184.4 163.1 85.1 338.6 218.1 189.6 160.3 85.6 326.4 212.1 108.5 109.7 127.6 134.7 83.2 108.6 109.5 127.6 133.9 81.9 109.4 110.5 128.0 135.3 86.0 160.2 170.1 210.1 227.5 130.8 153.0 164.2 208.1 216.1 126.5 154.2 163.7 202.2 215.9 126.9 118.7 77.9 107.3 107. 5 116.1 120.3 77.6 107.8 105.9 115.4 121.3 78.5 107.6 107.8 116.7 198.2 103.2 152.9 158.6 177.0 196.3 93.2 145.7 139.1 158.8 198.1 98.6 148.4 143.3 167.4 104.7 90.2 61.3 109.2 131.7 106.7 110.8 93.8 85.8 139.6 93.0 93.2 85.5 87.0 99.5 151.3 129.1 100.9 102.4 95.7 91.3 146.0 190.2 102.8 89.8 61.3 104.2 132.3 107.2 112.5 94.4 84.5 140.0 92.6 91.9 91.6 89.6 97.4 146.6 126.6 100.9 102.2 94.9 91.7 144.4 184.3 100.5 88.2 65.9 109.8 134.8 107.9 113.1 96.1 85.6 140.9 93.2 93.8 88.8 91.2 99.1 143.0 128.2 104.0 101.8 95.9 95.6 147.5 186.9 153.1 138.0 83.0 181.6 202.2 146.3 148.2 141.9 125.4 222.2 127.7 128.6 103.3 131.2 149.5 229.0 181.0 146.6 145.8 131.7 134.5 202.2 260.5 142.6 130.7 70.2 166.9 194.6 137.5 142.5 130.4 115.2 214.2 116.3 116.5 120.7 121.9 135.4 214.1 164.0 143.2 137.7 125.4 134.9 177.2 229.7 138.1 125.7 88.4 164.7 196.0 141.0 146.4 137.3 120.9 218.5 120.1 115.4 115.2 124.3 138.7 199. 5 168.5 143.9 137.4 128.6 134.9 193.7 234.3 131.6 144.5 118.6 145.0 147.3 124.5 134.9 148.6 128.0 168.4 176.4 157.1 177.5 173.0 158.7 165.5 173.4 163.4 188 Monthly Labor Review—January 1943 T a b l e 2.—Employment and P ay Rolls in Manufacturing and Nonmanufacturing I ndustries— Continued Esti Indexes of— mated num ber of Employment Pay rolls employSep Sep ees, Octo tem Au Octo tem Au October ber gust ber gust ber ber 1942 1942 1942 1942 1942 1942 1942 Industry Thou sands 13.1 16.0 25.9 20.6 9.7 265 11.6 25. 2 64.4 24.7 43.3 197 134.7 102. 1 104. 5 133.6 130. 6 114. 7 81.9 242. 2 129.5 116.2 120.0 146.4 140.1 110. 2 103.7 127. 5 117.9 113.6 85.6 94.6 121. 5 121.2 123.2 239.7 145.2 119. 4 102. 8 122.9 123.5 111.8 85.4 72. 2 112. 1 125. 4 124.3 184.5 180.3 123. 6 149. 5 195.3 190.4 143. 5 95.9 295. 4 178.0 132.6 143. 6 228. 7 186. 3 131.6 137.8 182. 5 155. 2 140.7 119.8 118.9 155. 4 137.6 152.9 373. 4 194. 1 140. 2 134.4 166. 2 171.9 138. 5 106.7 92. 8 144.0 144. 2 157.9 266.2 99.4 34. 5 49.9 8.6 106. 5 126.0 98.1 93.5 105. 2 123.3 98. 5 87.4 103.5 120.8 97. 5 84.6 154. 0 171.8 146.0 129.8 144.2 167.3 132.0 120. 4 144.3 171.1 130.1 117.2 Paper and allied productsPaper and pulp____. Paper goods_______ _____ Envelopes________ . Paper bags......... ............. Paper boxes ................... 295 151 45.2 9.5 12. 1 74.3 111.3 109. 5 120.2 109.6 109.5 107.4 110.0 109.7 117.6 109.1 110. 7 103. 5 110.3 110.6 117.0 109.4 110.3 103.0 156.0 158.9 156. 2 138.2 151.4 146.9 144.3 148.5 142.8 131.9 144.8 131.8 144.4 149.7 141.8 129.3 145. 0 130.2 Printing, publishing, and allied industries . Newspapers and periodicals Book and job____. Lithographing _- Bookbinding 324 116 129 23.9 26.6 98.9 98.1 101.8 92.0 103.2 96. 6 97.4 97.5 88.7 104.0 97.1 96.3 99.7 86.2 107.3 114.0 109.4 119.1 103.4 139.9 109.0 107.8 110.3 98.3 134.8 108.1 105. 5 110.8 94. 2 138.7 Chemicals and allied products Paints, varnishes, and colors Drugs, medicines, and insecticides Perfumes and cosmetics._ Soaps______ _ Rayon and allied products. Chemicals___________ Compressed and liquefied gases Cottonseed oil__ „ _ . Fertilizers__ _ . . . 655 28.9 38.8 10.5 14.0 51 6 in 6.4 23.1 19.3 227.1 102.7 141.6 101.0 103.1 106 9 158.9 160.7 152.0 102.6 220.3 102.5 139.1 101.7 102.5 106.6 159.2 161.9 126.5 103.0 213.8 102.6 137.1 104.2 98.7 106.1 158.9 162.8 69.2 91.8 342.1 131.2 183.2 125.6 134.3 144.7 230. 6 231. 2 239.5 164.1 331.7 128.8 172.9 120.7 133. 2 146. 2 222.1 229.3 179.3 164.6 322.5 128.5 165. 2 121.4 125.5 143.2 221.6 233.7 91.9 148.8 Products of petroleum and coal Petroleum refining. Coke and byproducts. . . Paving materials___ . .. Roofing materials_____ 125 78.9 26.6 2.0 10.4 117.9 108.4 122.8 82.3 128.8 119.4 110.3 124.7 74.1 127.9 120.1 110.8 125.0 72.5 131.7 158.9 145.7 160.4 131.6 201.9 158.6 144.3 170.7 113.0 186.5 154.6 139. 9 165.8 112. 5 192.7 Rubber products . . . _ Rubber tires and inner tubes Rubber boots and shoes . . . Rubber goods, other.. 162 72.6 20. 2 66.7 134.0 134.0 136.2 129.0 130.2 129.3 138.2 124.6 126.3 125. 5 129.1 122.3 193.8 187.6 209.8 191.3 182.9 177.3 207.3 177.1 178.2 172 9 191.9 175.4 Miscellaneous industries__ Photographic apparatus__ Pianos, organs, and parts Games, toys, and dolls. . Buttons_______ . 335 25.0 6.8 14.1 12.3 137.0 144.5 89.8 75.5 111.9 134.3 141.0 81.3 80.0 115.0 132.8 141.8 82.4 87.8 117.1 214.9 209.5 147.6 119.8 172.9 206.4 200.0 126. 2 113.8 175.4 197.8 195.0 123. 4 120.7 174.1 48.4 124.8 50.3 122.2 48.2 118.6 Food and kindred products—Continued. Condensed and evaporated m ilk. Ice cream _ _. _ _ Flour_______ Feeds, prepared__________ Cereal preparations_____ Baking___________ Sugar refining, cane. __ ____ Sugar, beet__ - Confectionery- - _ Beverages, nonalcoholic 5 __ Malt liquors 5________ . __ _ Canning and preserving____ Tobacco manufactures____ _ Cigarettes 6_______ . . Cigars 6____ Chewing and smoking tobacco and snuff N O N M A N U F A C T U R IN G [Indexes are based on 12-month ave ag \ 1929= 100] Coal mining: Anthracite 78____ . Bituminous 10__ _____ S ee fo o t n o t e s a t en d o f ta b le . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis («) (») 46.3 90.6 46.7 91.6 46.7 92.3 189 Trend of Employment and Unemployment T able 2.—Employment and P ay Rolls in Manufacturing and Nonmanufacturing Industries—Continued N O N M A N U F A C T U R IN G — C ontinued Industry Metalliferous mining 10._ ___________ ___ _____ Quarrying and nonmetallic mining _ _ _ _______ Crude-petroleum production 11______________ .. Public utilities: Telephone and telegraph i213__________ __ _ Electric light and power 1213 _ . . . ................. Street railways and busses 1213 “ ____ ____ _ Trade: Wholesale 1215_.. ____ _ _____ ______ ._ Retail I2 43_______________________________ Food 13 _ . .............. __ _ _____ _____ General merchandising 7213__ . . . . . . . . A pparel13. _ _____ Furniture and housefurnishings 13. _. Automotive >3_ _ _ _ _ Lumber and building materials 13 Hotels (year-round) 71218____ _____________ .. Laundries 7______ _________________________ Dyeing and cleaning 7__ . ________________ . _ Brokerage121718-.. . _ __ _ _____ _________ Insurance1217 .. . . . ___ _______ . . . . . . . Building construction17 . . .... Water transportation 19__________________ . . . _ Class I steam railroads 20____ . . . . _________ Indexes1of— E sti mated num Employment Pay rolls ber of em ployees, Octo Sep Au Octo Sep Au tem gust October ber tem gust ber 19422 1942 ber ber 1942 1942 1942 1942 1942 (») (9) (9) 77.7 50.0 55.4 78.6 50.7 55.8 80.3 51.5 56.7 104.5 68.9 63.7 103.0 67.5 64.5 106.5 67.4 62.4 («) (9) (9) 93.3 82.6 75.9 93.6 84.2 75.7 93.8 85.9 75.0 128.4 111.1 95.3 130.5 112.5 93.6 127.4 112.8 93.8 (9) (9) (») (9) (9) (9) (9) (») (“) (9) (9) (9) 90.0 94.6 114.5 121.1 96.5 58.9 51.3 69.3 95.6 115.9 124.8 -1 .3 -1 .2 -1 .4 74.6 129.5 89.4 91. 7 112.1 112.0 91.6 59.4 51.9 69.0 93.9 116.4 123.0 -3 .8 -1 .4 -3 .9 71.4 129.6 90.2 89.4 112.4 103.9 81.2 60.2 52.8 69.8 93.4 117.4 123.7 -2 .6 - .4 -3 .1 69.4 129.6 94.6 92.3 96.4 93.1 119.5 117.9 121.6 112.4 98.7 93.0 63.6 62.5 57.8 56.6 82. 2 80. 4 103.2 98.5 118.9 117.3 112.5 107.9 +2.4 -1 .1 + .4 -1 .8 - .9 - .1 +7.3 +10.2 (9) ( 9) 91.7 91.4 118.0 104.9 84.0 62.4 58.4 80 9 96.6 116.8 106.4 - 3 .8 - .8 - 2 .2 + .4 ( 9) ( 9) (9) (9) ( 9) 1 Data for manufacturing, mining, laundries, and dyeing and cleaning, cover wage earners only; for crudepetroleum production they cover wage earners and clerical field force; for public utilities, brokerage, insurance, and hotels they relate to all employees except corporation officers and executives; and for trade to all employ ees except corporation officers, executives and strictly supervisory personnel. 2 Information concerning the following war industries is not published but may be obtained by authorized agencies upon request: Aircraft engines; aircraft and parts, excluding engines; alloying, aluminum manu factures; ammunition; ears, electric- and steam-railroad; communication equipment; electrical equip ment, other; radios; engines and turbines; explosives and safety fuses; fire extinguishers; firearms; fire works; locomotives; machine tool accessories; machine tools; optical instruments and ophthalmic goods; professional and scientific instruments; and shipbuilding. 3 New subdivisions: “ Blast furnaces, steel works, and rolling mills” and “steel castings” were formerly shown as one industry under the heading, “ Blast furnaces, steel works, and rolling mills.” * New subdivisions: “Agricultural machinery” and “tractors” were formerly shown as one industry under the heading, “Agricultural implements including tractors.” 5 New subdivisions: “ Beverages, nonalcoholic” and “malt liquors” were formerly shown as one industry under the heading, “ Beverages.” 9 New subdivisions: “ Cigarettes” and “cigars” were formerly shown as one industry under the heading “ cigars and cigarettes.” 7 indexes adjusted to 1935 Census. Comparable series back to January 1929 presented in January 1938 issue of “Employment and Pay Rolls” pamphlet. 8 See table 7 of October 1940 “Employment and Pay Rolls” for revised employment and pay-roll indexes, average hours worked per week, average hourly earnings, and average weekly earnings in anthracite mining, February 1940 to September 1940, inclusive. 9 Not available. 10 See table 7 of February 1941 pamphlet for revised figures for metalliferous and bituminous-coal mining from January 1938 to January 1941, inclusive. 11 Does not include well-drilling or rig-building. 12 Average weekly earnings, hourly earnings, and hours are not comparable with figures published in pam phlets prior to January 1939 as they now exclude corporation officers, executives, and other employees whose duties are mainly supervisory. 13Retail-trade indexes adjusted to 1935 Census and public-utility indexes to 1937 Census. Not comparable to indexes published in pamphlets prior to January 1940 or in “Monthly Labor Review” prior to April 1940, with but one exception, retail furniture, which has been revised since publication of July 1940 pamphlet, back to January 1936. Comparable series for earlier months available upon request. 14 Covers street-railways and trolley and motorbus operations of subsidiary, affiliated, and successor com panies f ormerly “electric-railroad and motorbus operation and maintenance.” 13 Indexes adjusted to 1933 Census. Comparable series in November 1934 and subsequent issues of “Em ployment and Pay Rolls.” 16 Cash payments only; additional value of board, room, and tips cannot be computed. 17 Indexes of employment and pay rolls are not available; percentage changes from preceding month substituted. 18 See note 18 in table 9 in the July 1941 issue of “Employment and Pay Rolls” for revised average weekly earnings in the brokerage industry from January 1939 to January 1941. 19 Based on estimates prepared by the United States Maritime Commission covering employment on steam and more merchant vessels of 1,000 gross tons or over in deep-sea trades only. Pay-roll indexes not available. Perentage changes from preceding month substituted. 29 P r e lim in a r y ; source— I n te r s ta te C o m m e r c e C o m m is sio n , 50115 2 — 43- 13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 190 Data relating to individual manufacturing industries have been adjusted from 1937 to date to conform to levels of the 1939 Census of Manufactures. Not all industries in each census group are repre sented in the tables since minor industries are not canvassed by the Bureau, and others cannot be shown because of their close relation ship to the war program. Furthermore, no attempt has been made to allocate among the separate industries the adjustment to unem ployment-compensation data. Hence, the estimates for individual industries within a group will not in general add to the total estimate for that group. T able 3 . —Hours and Earnings in Manufacturing and Nonmanufacturing Industries M A N U F A C T U R IN G Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Oct. Sept. Aug. Oct. Sept. Aug. Oct. Sept. Aug. 1942 1942 1942 1942 1942 1942 1942 1942 1942 All manufacturing. ___ . . . . . Durable goods._ _____________ ... Nondurable goods______________ $38.86 $37. 79 $37. 38 43.6 42.3 42.8 45. 26 44. 45 43 84 45.7 44 6 45.2 30.64 29.53 29. 36 40.6 39.5 ¿9.9 Cts. Cts. Cts. 86.6 88.5 86.4 98.8 99.5 96.6 75.7 74.9 73.8 Durable goods Iron and steel and their products. _. __ ... Blast furnaces, steel works, and rolling mills 2 Steel castings 2___ _______________ _ ... Cast-iron pipe and fittings______________ Tin cans and other tinw are... Wirework 2___ _____________ _____ Cutlery and edge tools.............. ........... Tools (except edge tools, machine tools, files, . . . . ... and saws) U . ___ Hardware 45 ................... . _ Plum bers’ supplies_________________ Stoves, oil burners, and heating equipm ent.. Steam and hot-water heating apparatus and steam fittings............ ...... _ ____ _ Stamped and enameled ware and galvanizing Fabricated structural and ornamental metal w ork... _ _ . . . Bolts, nuts, washers, and rivets________ . I orgings, iron and steel5_____________ . Firearms U. ___________ . . 47.03 42. 97 53.09 55.81 44.81 41.96 49. 56 58.02 44. 37 42.94 50. 58 56.28 47.9 46.0 48.1 49.0 46.6 44.9 45.6 48.8 47.2 98.8 96.7 94.4 45.6 93.5 93.5 92.3 47.4 110.5 108.8 106.7 49.3 113.9 119.0 114.1 Electrical machinery___ ___________ ._ .. Electrical equipm ent6.. __ ... Radios, and phonographs 5_______________ Communication equipm ent6________ 43.64 45. 23 37.88 40. 29 43.77 45.30 37.28 41.25 42. 41 44.29 36.38 38.78 46.4 47.0 46.0 45.9 45.7 46.4 44.9 45.2 46.1 46.6 45.0 46.0 96.3 98.3 83.0 91.5 92.6 95.0 81.1 84.6 Machinery except electrical__________________ Machinery and machine-shop products 4 3 Engines and turbines excluding aircraft en gines 4_______________________________ Agricultural machinery, excluding tractors 73_ Tractors 5___ ......... Machine tools.................. Textile machinery_________ . . . . ______ Typewriters___________________________ Cash register, adding, and calculating ma chines. _ ._ ____ ________________ . .. 49. 27 47.68 48.24 48.6 47.2 48.6 101.8 101.3 48.10 46. 95 47.04 48.8 47.8 48.8 98.4 97.9 99.7 96.2 43. 20 43.87 45.38 36.24 32. 36 41.25 39. 46 42.31 43.21 44.54 33. 77 31.48 40.12 36. 69 41.69 41.99 44.07 35. 42 31.41 39.12 36.42 43.4 41.0 45.6 44.0 41.5 46.1 46.5 42.1 39.9 45.6 42.6 40.8 45.0 44.8 42.8 99.0 99.7 96.7 40.2 107.1 107.9 104.1 45.9 99.0 97.7 96.1 44.8 81.7 78.6 78.8 41.5 78.8 75.7 45. 4 89.6 89.2 86.2 45.0 85.7 82.5 81.6 42.36 38.40 39. 57 38.88 40. 47 35.43 36.73 36. 35 40.22 35. 35 37.74 36.24 48.0 46.5 45.2 44.7 46.5 43.6 42.5 42.5 47.3 44.9 43.8 43.2 88.0 82.6 87.5 87. 1 87.0 81.0 86.4 85.6 85.0 78.8 86.2 83.9 44.70 45. It 44.15 47.6 46.3 46.8 40.04 36.95 37. 65 45.1 42.3 44.3 94.0 88.8 97.5 87.4 94.0 84.8 55.64 43.66 47.28 52. 32 43.90 43.25 53.33 38.48 45.80 50.72 42.41 39.87 54.33 40.70 45.78 52. 12 40.98 38.51 49.7 43.7 44.6 52. 5 50.3 49.4 47.7 39.0 42.9 51.2 49.4 45.1 94.6 97.0 82.2 87.9 49.6 112.1 112.3 110.3 42.0 99.2 98.2 96.8 44.0 106. 6 107.4 104.2 52.8 99.8 99.0 98.7 49.0 87.4 85.9 83.6 46.2 87.5 88.5 83.4 51.96 53. 21 49.98 47.7 47.0 47.0 109.8 114.3 107.3 Automobiles.. . ______ _ _________ 52. 72 51.85 51.85 44.9 43.7 44.5 117.2 118.8 116.8 Transportation equipment, except automobiles.. Locomotives. _ _ ___ . Cars, electric-and-steam railroad__________ Aircraft and parts (excluding aircraft engines). Aircraft engines 4____ _ ................... Shipbuilding and boat building___________ See fo o tn o tes a t end of table. 53. ¿0 56.00 48. 58 45.77 59. 24 57.57 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54.18 53.11 44.54 46.55 60.36 58.60 53. 09 52.90 45.30 46.24 59.43 56.82 47.1 48.4 44.4 46.3 48.0 47.6 46.6 47.7 41.9 46.3 48.0 47.0 47.1 47.4 43.6 46.7 48.6 47.6 111.0 116.0 109.1 99.1 123.5 120.9 il4 .2 111.7 106.3 101.1 124.8 124.7 110.5 110.7 103.8 99.3 122.3 119.3 191 Trend of Employment and Unemployment T able 3 . —Hours and Earnings in Manufacturing and Nonmanufacturing IndustriesContinued M A N U F A C T U R IN G —C on tin u ed Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Oct. Sept. Aug. Oct. Sept. Aug. Oct. Sept. Aug. 1942 1942 1942 1942 1942 1942 Durable goods— C o n tin u e d N on ferrou s m e ta ls a n d th e ir p r o d u c ts ____________ $43.54 $42.18 $41.78 45.3 44.3 P r im a r y s m e ltin g an d re fin in g 86______ ______ 38.92 38.09 37.62 42.0 41.5 A llo y in g ; a n d r o llin g a n d d r a w in g (of n o n ferrous m e ta ls e x c e p t a lu m in u m ) >___......... 48.61 49.03 48.68 46.5 45.7 37.11 35.96 35. 57 45.9 45.0 C lo c k s a n d w a tc h e s 8 5__________ _____ - - - - — J e w e lr y (p r e c io u s m e ta ls a n d je w e le r s’ fin d in g s ) 6_________________ ________ _____ ______ 36.69 34.95 33.31 45.3 44.4 S ilv e r w a r e a n d p la te d w a r e 3____________ _____ 40. 25 37.83 39.45 46.4 43.7 L ig h tin g e q u ip m e n t 3_________________________ 40.34 39.51 41.00 44.2 42.9 46. 39 44.83 43.18 45.7 44.8 A lu m in u m m a n u fa c tu r e s 3___ _______________ 4 4 45.0 41.2 1942 1942 1942 Cls. Cts. Cts. 97.9 92.7 97.9 91.7 95.4 91.0 46.2 105.3 107.7 105.9 45.0 80.9 80.1 79.1 78.6 44.0 86.6 46.3 44.3 92.2 92.1 45.2 101.3 100.0 75.0 85.3 92.6 95.5 Lumber and timber basic products_____ Sawmills________________________ Planing and plywood mills 8________ 29.53 28.01 28. 25 42.5 41.0 41.7 28.69 27.22 27.33 42.0 40.6 41.2 32.10 30.68 31.60 44.3 42.6 43.6 69.5 68.4 72.9 68.2 67.1 72.0 67.6 66.3 72.0 Furniture and finished lumber products- _ Furniture 5______________________ 29.47 27.70 27.34 43.1 41.0 41.4 30.76 28.97 28.95 43.6 41.6 41.6 70.4 70.6 69.5 70.0 68.1 68.2 Stone, clay, and glass products______________ Glass------------- ------- --------------------------Cement--------------------------------------------Brick, tile, and terra cotta 8-------------------Pottery and related products___________ Marble, granite, slate, and other products.Asbestos p ro d u cts-..----- --------------------- 33.54 35.61 35.91 28.91 30. 29 32. 74 39.33 82.3 81.0 85.4 87.0 71.2 76.4 79.8 88.4 79.8 84.2 85.3 69.7 78.0 79.4 82.6 31.44 31.28 35.29 27.72 29.11 30.98 39.08 31.57 32.55 34.98 27.32 29.64 30.65 37. 53 39.8 40.0 41.7 40.0 39.4 39.6 46.0 37.9 36.7 40.6 38.7 38.3 38.7 44.2 38.7 38.7 41.0 39.0 38.3 38.3 45.4 88.8 86.1 72.5 77.4 80.3 87.2 Nondurable goods 39.3 37.8 38.8 Textiles and apparel and other finished products. 25.14 Textile-mill products and other fiber manufac tures___________________________________ 25.83 24.95 24.83 Cotton manufactures except small wares----- 23. 35 23.10 22.37 Cotton, small wares___________ _____ — 31.46 29.97 29. 55 Silk and rayon goods_________ __________ 25.31 24.69 23.62 Woolen and worsted manufactures except dyeing and finishing--------------------------- 31.13 30.40 31.43 Hosiery________ ________ ________ ____ 24.15 22.05 23.20 Knitted cloth__________________________ 27.01 25.63 26.13 Knitted outerwear and knitted gloves-------- 24.16 21.60 21.85 Knitted underwear_____________________ 22.7 20. 57 21.48 Dyeing and finishing textiles, including woolen and worsted----------------------------- 30.32 28.91 28.61 35.01 33.30 32.60 Carpets and rugs, wool----------------- -----Hats, fur-felt__________________ ____ ___ 31.10 26.19 30.64 62.7 40.4 40.5 44.4 40.9 39.4 40.3 42.7 40.4 40.3 40.8 43.7 40.0 64.2 57.7 71.1 61.5 63.6 57.5 70.4 61.1 61.9 54.9 68.0 59.0 39.7 38.2 41.6 39.3 40.0 39 35.2 39.6 36.4 37.8 40.6 37.3 41.4 37.9 39.7 78 64.3 64.5 61.0 56.0 77.9 62.8 64.5 58.8 54.5 77.4 62.6 62.9 57.1 53.7 43.1 41.6 41.8 42.7 40.7 40.6 36.2 30.0 35.5 70. 82.5 86.3 69.4 82.0 87.9 68.3 80.6 87.6 34.6 34.6 35.2 34.1 34.3 36. 33. Apparel and other finished textile products---Men’s clothing_______________________ Shirts, collars, and nightwear 4_.------------Underwear and neckwear 4-------------------Women’s clothing, not elsewhere classified. Corsets, and allied garments____________ Millinery____________________________ 24.13 25. 53 20. 65 19.93 26.86 23.99 29.38 35. 35.4 36.8 35.0 36.2 36.6 34.4 65.8 70.2 54.9 55 66.3 60.0 76.4 65.2 70.1 53.8 53.4 64.7 59.5 80.3 64.2 69.7 53.1 53.6 63.1 58.1 77.9 Leather and leather products L eath er______________ Boots and shoes________ 36.6 38.2 27. 62 25.82 26.21 38 34.89 33.09 33.17 41.5 39.6 40.4 26.03 25.93 24.89 38.1 35.9 37.7 71.1 84.2 70.5 83.7 67.7 82.3 65.7 Food and kindred products___________ Slaughtering and meat packing., j . . . Butter------------- ------ ------------------Ice cream_______________________ Flour 5------ ------------------------------Baking________________________ Sugar refining, cane---------------------Sugar, beet_____________________ Confectionery___________________ See fo o tn o tes a t end of table. 30.95 33.92 29.11 33.34 ■36.27 31.90 28.07 30.80 25. 30 41.5 40.1 47.7 47.1 44.9 43.3 38.3 37.0 39.7 75.7 82.2 61.7 70.9 77.1 74. 78.0 72.9 61.4 72.8 81.3 59.9 69.6 75.5 73.3 80.5 85.7 60.3 73.2 80.7 58.6 67.3 74.5 73.2 78.2 87.6 59.8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22. 53 24. 18 18.88 18.58 24. 57 21.97 32.02 29.93 32. 62 28.01 32.91 33.79 31.72 33.55 31.61 23. 59 22.95 24.70 19.51 i 9. 20 25.20 21.31 31.56 29. 67 32.40 28.09 32.40 33.33 31.69 29.95 32.35 23.63 36.8 36.3 37.6 35.8 37.1 39.7 32.3 41.9 41.2 47.3 46.0 47.5 43.1 36.5 41.8 41. 4 42.0 40.1 46.7 46.2 44.9 43.4 37.4 36.9 39.2 192 Monthly Labor Review—January 1943 T able 3. Hours and Earnings in Manufacturing and Nonmanufacturing Industries— Continued M A N U F A C T U R IN G — C ontinued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Oct. Sept. Aug. Oct. Sept. Aug. Oct. Sept. Aug. 1942 1942 1942 1942 1942 1942 1942 1942 1942 Nondurable goods—Continued Food and kindred products—Continued. Beverages, nonalcoholic 8 $29. 03 $28. 87 $29. 24 42.8 43.2 43.9 M alt liquors 85________ 41.72 43.41 44. 42 40. 7 41.9 43.1 Canning and preserving_________________ 24. 93 24.88 23.14 37.6 41.1 38.2 Tobacco manufactures___ 24. 38 23.03 23. 46 40.4 38.6 39.4 Cigarettes 10_____ _ 28. 46 28.31 29.56 41.3 40.7 42.1 Cigars 10_______ 21. 34 19.31 19. 22 40.1 37. 2 38.0 Chewing and smoking tobacco and snuff 24. 38 24. 02 24.21 38.9 38.3 38.3 Paper and allied products . 33. 42 31.24 31.20 43.3 40.8 41.2 Paper and pulp_____ 36. 59 34.10 34.18 44.2 41.4 41.9 Paper boxes. ___ _ 29.89 27. 80 27.54 42.8 40.3 40.3 Printing, publishing, and allied industries... 37. 45 36. 64 36.18 38. 5 38. 2 38.0 Newspapers and periodicals . _ 42.29 41.86 41.34 36.1 35.7 35.9 Book and job 3__ 35. 21 34. 07 33. 43 40.0 40.1 39.2 Chemicals and allied products... 37.76 37. 67 37. 73 42. 5 41. 7 41. 9 Paints, varnishes, and colors 36. 83 36.11 35. 92 41. 7 41. 2 41. 4 Drugs, medicines, and insecticides 4________ 30. 98 29. 50 28. 51 41.8 40.0 39.7 Soaps_______ 37. 14 37.03 36. 28 41.1 41. 2 40.8 Rayon and allied products . 32. 96 33. 38 32. 85 39. 5 39. 5 39. 7 Chemicals, not elsewhere classified 5 43. 38 41.70 41.73 42.6 41.1 41.6 Explosives and safety fuses 4. . . 45. 22 46.31 44. 82 46.0 45.7 46.2 Ammunition. __ 39. 21 40.11 40. 54 45.0 45.4 46.4 Fireworks. . . 31.87 33. 30 33.98 41.7 42.6 43.3 Cottonseed oil______________________ 21.39 19. 23 18.03 57.2 48.7 43.3 Fertilizers.. . 23.10 23. 23 23.31 39.2 39.1 38.8 Products of petroleum and coal 43. 80 42.95 41.66 40.5 39. 5 39. 5 Petroleum refining. ___ 46. 56 45.19 43. 58 40.1 38.8 38.7 Rubber products___ 40. 49 39.28 39.43 42.7 41. 5 42.2 Rubber tires and inner tubes___ 46.86 45. 88 46.10 41.9 41.2 41.7 Rubber boots and shoes .. 34. 76 33.87 33. 57 43.8 42. 7 42. 9 Rubber goods, other. . 35. 07 33.64 33.98 43.3 41.5 42.7 Miscellaneous industries Professional and scientific instruments and fire control equipment Cts Cts. Cts 70.5 69. 7 69. 5 102.7 103. 7 103.1 67.7 62.2 61.1 59.6 68.9 53. 7 62.7 59. 1 58. 7 69.6 70.3 52 0 50 ft 62.8 63.3 77.1 82.8 70.2 76. 6 82. 5 69.3 75 7 81. 4 68.6 97 2 90 0 95 2 114.6 114.9 113. 5 88.4 85.4 85.5 88 0 88 6 73.7 90. 3 83 4 101. 9 98.2 87.0 76.4 37.2 58.9 89 7 87 Q 73. 2 89 8 84 5 101 4 101.3 88.4 78.1 39.4 59.3 89 2 87 0 72 ! 2 88 8 82 7 100 1 9 7 .1 87. 2 78. 6 41. 5 60.1 108.1 108. 8 105.4 116.0 116.5 113.0 94. 8 94 8 93. 6 112 0 111 6 110 5 79. 4 79 1 78 2 81.4 81.2 7 9 .9 3fi 23 35.39 34.18 44.9 43.4 7 9 .9 48.17 50. 24 47.65 52.2 51.0 49.5 92.4 98.5 96.0 N O N M A N U F A C T U R IN G Coal mining: Anthracite___________ ___________ Bituminous______________________ Metalliferous mining_________________ Quarrying and nonmetallic mining____’’ Crude petroleum production___________ Public utilities: Telephone and telegraph___________ Electric light and power___________ Street railways and busses_________ Trade: Wholesale_______________________ Retail_________________________ Food________________________ General merchandising_________ Appajel______________________ Furniture and house furnishings. _ Automotive_____ _______ Lumber and building materials.. See fo o tn o tes a t end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34. 36 36. 56 41.93 34. 01 42.26 35. 52 35. 64 40.69 32. 85 42. 77 34. 00 34.13 41.4? 32. 47 40.14 35. 1 34. r 46.3 45. 7 39.8 35.8 33.5 45.4 44. 7 39.9 34.0 98.4 98.9 99.2 32. 1 107. 5 106.5 106.1 45.8 90.6 89.7 90.6 44.7 74.4 73.8 72.8 38.8 103.9 103.7 102.0 33.67 34.10 33.19 40.6 41.4 40.7 40. 71 40.59 39.82 40.5 40.1 40.0 40. 98 40. 39 40. 46 47.9 47.4 48.5 36. 52 23.36 26. 75 19. 75 23. 74 33.06 33. 46 33. 09 36.08 23.41 27. 07 19.76 23. 93 32.16 3?. 65 32. 01 35. 97 23.66 26.91 19. 82 24. 27 31.71 32. 95 31.90 41.7 40.9 40.9 37.3 36.7 44. 2 47.8 43.4 41.2 41. 1 41.2 37.5 36.8 44.0 47.5 42.2 40.9 42.1 42.4 38.3 38.1 43.9 48.6 43.2 83.3 84.0 82.9 100.5 83.6 81.9 99.3 82.9 87.9 62.3 63.0 52.0 64.8 77.6 70.5 78.5 87.8 62.1 62.9 51.9 64.7 75.5 69.3 78.8 87.0 61.4 61.8 51.6 63.8 75.2 69.0 76.8 100.0 Trend of Employment and Unemployment 193 T able 3.—Hours and Earnings in Manufacturing and Nonmanufacturing Industries— Continued NONMANUFACTURING— Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Oct. Sept. Aug. Oct. Sept. Aug. Oct. Sept. Aug. 1942 1942 1942 1942 1942 1942 1942 1942 1942 Hotels (year-round)________________ . . . . . . Laundries._____ __________________ ______ Dyeing and cleaning________________________ Brokerage____ . . . ............ ......................... Insurance _ . . . _ _______ _________________ Building construction_____ _________________ $18. 60 $17. 95 $17. 75 21. 57 21.15 20. 85 25. 23 24.49 23.95 43.24 41.86 40.49 38. 26 37. 67 37. 77 45. 36 45.40 43. 79 45.0 43.3 43. 5 (») (••) 37.9 45.3 43.1 43. 1 (») (n> 37.8 Cts. 45.6 40.6 43.2 50.2 42.8 60.1 (») (») (") (“ ) 37.3 119.8 Cts. 39.2 49.6 58.8 <“ > (») 120.1 Cts. 38.9 48.7 58.0 (>') (“) 117.4 1 These average weekly hours, weekly earnings and hourly earnings are based on reports from cooperating establishments covering both full- and part-time employees who worked during any part of one pay period ending nearest the 15th of the month. Since not all reporting firms furnish man-hour data, average hours and average hourly earnings are based upon a slightly different sample than are weekly earnings. Except for the group averages the data have not been adjusted to remove the small inconsistencies due to this procedure. Weekly earnings for manufacturing groups are now weigh ted, and are therefore not comparable to previous published series. 2 New subdivisions: Blast furnaces, steel works, and rolling mills and Steel castings were combined in previous releases. 3 Because of changes in the composition of the reporting sample, average weekly earnings, average hours, and average hourly earnings are not comparable with those previously published as indicated: Wirework—Average weekly and hourly earnings (comparable July $38.38 and 85.1 cents). Tools—Not Edge—Average hourly earnings (comparable July 83.5 cents). Silverware and Plated Ware—Average hours and hourly earnings (comparable July 44.8 hours and 82.9 cents). Lighting Equipment—Average hours (comparable June 43.6 July, 45.1); average weekly earnings (com parable July $40.37); and average hourly earnings (comparable June and July 89.4 and 89.6 cents). Aluminum Products—Average weekly earnings, average hours, and average hourly earnings (comparable July $42.39, 45.1 hours and 94.0 cents). Pottery—Average hours and average hourly earnings (comparable July 37.1 hours and 75.5 cents). Printing—Book and Job—Average hourly earnings (comparable July 86.1 cents). 4 New series, comparable to Standard Industrial Classification definition. 8 Revisions in the following industries have been made as indicated: Hardware—July average weekly earnings to $34.99, average hours to 44.0. Forgings—July average weekly earnings, average hours, and average hourly earnings to $48.98,47.2,and 103.8 cents. Firearms—July average weekly earnings, average hours and average hourly earnings to $55.19, 49.1 and 112.5 cents. Radios—June and July average weekly earnings and average hours to $36.32 and $36.59, and 45.4 and 45.1, also July average hourly earnings to 81.0 cents. Machine Shop Products—July average hours and average hourly earnings to 48.2 and 94.7 cents. Agricultural Implements—July average weekly earnings, average hours, and average hourly earnings to $38.32, 40.3, and 95.4 cents. Smelting and Refining—July average weekly earnings to $37.59. Alloying—July average weekly earnings, and average hourly earnings to $48.24 and 105.5 cents. Clocks and Watches—July average weekly earnings, average hours, and average hourly earnings to $36.07, 44.9 and 77.6 cents. Jewelry—July average weekly earnings, average hours, and average hourly earnings to $32.08,42.9, and 74.6 cents. Furniture—July average hourly earnings to 67.3 cents. Flour—June average hourly earnings to 70.2 cents and July average hours and average hourly earnings to 45.4 and 71.8 cents. Malt liquors—July average weekly earnings, average hours, and average hourly earnings to $44.14, 42.4 and 103.7 cents. Chemicals—July average weekly earnings, average hours, and average hourly earnings to $42.01, 41.7 and 103.7 cents. Chemicals—July average weekly earnings, average hours, and average hourly earnings to $42.01,41.7 and 100.4 cents. • New subdivisions Electrical equipment and Communication equipment were combined in previous eleases. I New subdivisions: Agricultural implements and Tractors were combined in previous releases. 8 Industry definitions changed slightly to conform to Standard Industrial Classification, not strictly com parable with previously published series. II New subdivisions: Nonalcoholic beverages and M alt liquors were combined in previous releases. 10 New subdivisions: Cigarettes and Cigars were combined in previous releases. 11 Not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T able 4.— Indexes of Employment and P ay Rolls in Selected Manufacturing 1 and Nonmanufacturing 1 Industries, October 1941 to October 1942 \o EM PLOYM ENT 1942 1941 Industry Aver age Octo Novem Decem Janu ary ber ber ber Febru March ary April May June July Octo August Septem ber ber 130.3 151.3 113.7 139.0 163.3 119.8 138.4 164.2 118. 1 138.3 164. 5 117.6 136. 5 164.2 114.8 138.7 167. 1 116.3 140. 6 170.6 117.0 142.2 173.9 117. 2 143.5 177.3 116.9 145.1 181.4 116.5 148.5 186. 1 118.8 152. 1 191. 1 121.3 154.4 194. 1 123.2 155.3 198.1 121. 6 Nonmanufacturing Anthracite m ining3 __ __ -----Bituminous-coal mining 3____________________________ Metalliferous mining «_______________________________ Quarrying and nonmetallic mining- .. _ -----_ Crude-petroleum production___ _ _____ _ _ Telephone and telegraph L . . . ___ _ ______ _ Electric light and power 7 - - - - Street railways and busses 78 . . ------------- ---------- - Wholesale trad e-_ . . . ___ ___ _ _______ - . . _ Retail trade 7_- ____ ------------- ---- -----------Year-round hotels s__ ___ _ ____ ______________ -Laundries5- _________ ______ ________ __ ---___ ________ --------Dyeing and cleaning 5__ 49.7 86.2 77.6 49.8 61.0 86.3 92.7 69.3 94.0 98.0 95.0 108. 5 115.1 50. 3 95.3 79. 7 54. 1 61.6 90.6 94. 1 70.3 96.3 101.0 96.2 111.2 121.2 50.2 95. 1 79. 5 52.6 60.9 90.1 93.4 70.2 96.3 103.0 96.1 108.9 117.2 49. 1 95.5 80.2 50.9 61. 1 90.0 93. 1 70.6 96.3 113.0 95.3 108.4 113.3 49.0 95. 1 80.7 46. 8 61.3 90.4 92.0 70.4 94.9 95.4 94.2 108.8 109.8 48.8 94.5 81.0 46. 7 60.6 90.3 90.5 70.7 94.3 94.0 94. 1 107.6 109.5 48.4 93.7 81.9 47.7 59.7 90.5 89.6 71.2 93.9 94.4 93.5 107.9 113.8 47.8 93.5 81.9 50.3 58.8 91. 2 88.9 72. 1 92.7 94.3 95.2 110. 3 121.3 48.2 92.9 82. 2 51.7 58. 1 91.7 88.0 72.9 91. 2 94.0 96.1 113. 7 127. 6 45.5 92.7 81.8 51.9 57.5 92.5 87.7 74.0 90.4 92.8 95.5 114.8 130.1 46.8 93.0 81.5 51.6 57.1 93.5 86.9 74.8 89.7 90.3 94.4 119.1 126.9 46.7 92.3 80.3 51.5 56.7 93.8 85.9 75.0 90.2 89.4 93.4 117.4 123.7 46.7 91.6 78.6 50. 7 55.8 93.6 84.2 75.7 89. 4 91.7 93.9 116.4 123.0 46.3 90.6 77.7 50. 0 53.4 93.3 82.6 75.9 90.0 94.6 95.6 115. 9 124.8 P A Y R O LLS Manufacturing All industries __ _ _ _ _ Durable goods 3 _ _________ - ______________ Nondurable goods4 _ ______ ___ ___ 165.3 199.3 132.0 186.8 228.9 145.6 185.0 228.0 143.0 191.0 236.0 147. 1 195.9 248.6 144.4 202.9 257.9 149. 1 209.2 267.3 152.3 214.8 277.2 153.7 221.2 288.2 155. 7 226.5 299. 1 155.4 234.3 310.3 160. 0 245.8 327.3 166. 1 252.5 337.2 169.6 260.9 350.2 173.6 41.4 99.6 81.9 51.8 60.5 112.7 111. 2 49.2 122. 6 88.3 61.5 64.4 117.0 115.7 41.8 116.4 89.8 57.5 64.2 118.3 115.2 35.9 119.9 93.7 55.8 64.6 122.9 115.2 39.4 117.1 94.3 48.9 64.8 120.9 114.6 49.6 118.2 98.4 52.0 64.8 120.9 113.7 50.9 116.7 99.1 54.4 62.6 121.8 113.5 44.7 118.3 99.1 58. 1 63.2 122.2 113.5 51.5 122. 1 ICO. 8 63.0 62.0 125.0 113.6 56.0 140.3 102.0 65. 1 62.9 125.3 113.6 45.9 112.7 101.6 65.9 62.4 126.0 113.4 48.2 118.6 106.5 67.4 62.4 127.4 112.8 50.3 122.2 103.0 67.5 64.5 130.5 112.5 48.4 124.8 104.5 68.9 63.7 128.4 111. 1 Nonmanufacturing Anthracite m ining5 Bituminous-coal mining 5 ....... Metalliferous mining 6 Quarrying and nonmetallic mining Crude-petroleum production Telephone and telegraph 7 _ Electric light and power 7--- ______ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - _ __ ___ . ________ ______ Monthly Labor Review—January 1943 Manufactur ing All industries - - - ....... ....... Durable goods 3____________________ --- ----------Nondurable goods4 - . ________ - - - - Street railways and busses 78— ---------------------------------Wholesale trade __ __ -__ ___ _ __ _ ______ _ Rpta.il trad p 7 Year-round hotels 5 ______ __ __ T.antidries _ Dyeing and cleaning 8----------------------------------------------- 75.4 87.1 93.4 88.5 99.3 90.4 78.4 92.0 97.3 91.9 103.4 98.5 78.5 91.6 98.5 93.2 101.9 93.0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80.5 91.8 94.6 91. 5 103.8 86.5 83.7 93.7 93.9 92.6 102. 5 85.6 84. 7 93.9 93.7 91.6 104. 3 92.7 84.4 92. 2 93.6 93.5 108.6 105.7 86.8 91.7 94.0 95.4 113.8 113. 1 89.4 91.0 93.4 96.6 115.2 117.7 91.0 91.3 91. 8 96.5 117. 8 109.2 93.8 91.7 91.4 96.6 116.8 106.4 93.6 92.3 93.1 98. 5 117.3 107.9 95.3 94.6 91). 4 103. 2 118. 9 112. 5 products; printing, publishing, and allied industries; and a number of miscellaneous industries not included in other groups. 3 Indexes have been adjusted to the 1935 census. Comparable series from January 1929 forward are presented in January 1938 and subsequent issues of “ Employment and Pay Rolls.” See also table 7 of October 1940 “ Employment and Pay Rolls” for revised figures for anthracite mining, February to September 1940. « See table 7 of February 1941 “ Employment and Pay Rolls” for revised indexes January 1938 to January 1941. 7 Reiail-trade indexes adjusted to 1935 census and public-utility indexes to 1937 census. Not comparable with indexes published in “ Employment and Pay Rolls” prior to January 1940 or in Monthly Labor Review prior to April 1940. Comparable series, Janu ary 1929 to April 1942, available in mimeographed form. 8 Covers street railways and trolley and motorbus operations of subsidiary, affiliated, and successor companies. Trend of Employment and Unemployment 1 1939 average=100—adjusted to 1940 and preliminary 1941 data supplied by Bureau of Employment Security. Not comparable with previously published indexes. 2 1929 average=100. Comparable indexes for wholesale trade, quarrying, metal m ining, and crude petroleum production are in November 1934 and subsequent issues of “ E m ployment and Pay Bolls” or in February 1935 and subsequent issues of Monthly Labor Review. For other nonmanufacturing indexes see notes 5, 6, and 7. 3 Includes the following groups: Iron and steel and their products; machinery except electrical; transportation equipment except automobiles; nonferrous metals and their products; lumber and timber basic products; stone, clay, and glass products; electrical machinery; automobiles; and furniture and finished lumber products. i Includes the following groups: Textiles and finished textile products, leather and leather products; food and kindred products; tobacco manufactures; paper and allied products; chemicals and allied products; products of petroleum and coal; rubber products; textile-mill products and other fiber manufactures; apparel and other finished textile 80.0 92.8 107.8 93.3 102.6 88.6 O Cn 196 Monthly Labor Review—January 1943 EM PLO Y M EN T AND U N EM PLO Y M EN T IN NOVEM BER 1942 EMPLOYMENT in the United States increased by 400,000 between October and November 1942, according to returns from the Bureau of the Census sample Monthly Report on the Labor Force. At the same time, the civilian labor force increased by 500,000 and unem ployment went up by 100,000. T able 1.— Estimated Civilian Labor Force, by Employment Status and by Sex, A pril 1940—November 1942 [Source: U. S. Department of Commerce, Bureau of the Census] Estimated number (millions of persons) Month Labor force Total Male Employed Unemployed 1 Female Total Male Female Total Male Female 1940 April_________ . . _ M ay_______________ . June _ _______ _ July_________________ August_____________ _ September __ . _ O ctober____ November________ . . . D ecem b er,.................... 53.9 54.7 56.2 56.9 56.6 54.9 54.4 53.7 53.4 40.6 41.3 42.3 43. 1 42.9 41.5 41.3 41.1 40.9 13.3 13.4 13.9 13.8 13.7 13.4 13. 1 12.6 12.5 45.1 46.3 47.6 47.6 47.7 47.9 47.0 46.3 46.3 34.1 35.3 36.4 36.8 36.9 36.7 36.2 35.8 35.7 11.0 11.0 11.2 10.8 10.8 11.2 10.8 10.5 10.6 8.8 8.4 8.6 9.3 8.9 7.0 7.4 7.4 7.1 6.5 6.0 5.9 6.3 6.0 4.8 5.1 5.3 5.2 2.3 2.4 2.7 3.0 2.9 2.2 2.3 2.1 1.9 53.0 52.9 52.7 53.5 54.2 56.2 56.6 56.4 54.8 54. 1 54. 1 54.0 40.7 40.6 40.4 40.9 40.9 42.3 42.6 42.4 41.0 40.4 40.3 40.2 12.3 12.3 12.3 12.6 13.3 13.9 14.0 14.0 13.8 13.7 13.8 13.8 45.3 45.7 45.8 46.8 48.5 50.2 50.9 51.0 50.3 50.2 50.2 50.2 35.1 35.4 35.4 36.2 37.0 38.3 38.9 38.8 38.0 37.9 37.7 37.6 10.2 10.3 10.4 10.6 11.5 11.9 12.0 12.2 12.3 12.3 12.5 12.6 7.7 7.2 6.9 5.7 6.0 5.7 5.4 4.5 3.9 3.9 3.8 5.6 5.2 5.0 4.7 3.9 4.0 3. 7 3.6 3.0 2.5 2.6 2.6 2.1 2.0 1.9 2.0 1.8 2.0 2.0 1.8 1.5 1.4 1.3 1.2 53.2 53.4 54.5 53.7 54.2 56. 1 56.8 56.2 54. 1 54.0 54.5 40.0 40.0 40.0 39.8 40.0 41.1 41.6 41. 1 39.2 39.0 38.5 13.2 13.4 14.5 13.9 14.2 15.0 15. 2 15.1 14.9 15.0 16.0 48.9 49.4 50.9 50.7 51.6 53.3 54.0 54.0 52.4 52.4 52.8 37.0 37.2 37.6 37.8 38.4 39.4 39.9 39.7 38.2 38.1 37.5 11.9 12.2 13.3 12.9 13.2 13.9 14.1 14.3 14.2 14. 3 15.3 4.3 4.0 3.6 3.0 2.6 2.8 2.8 2.2 1. 7 1.6 1.7 3.0 2.8 2.4 2.0 1.6 1.7 1. 7 1. 4 1.0 .9 1.0 1.3 1.2 1.2 1.0 1.0 1.1 1.1 .8 .7 .7 .7 1941 January__________ __ February. __ _ . . . March. April_____________ _ M ay____ ________ _ June__________ . Ju ly-------------------------August. __ __ _ ___ _ September.______ .. . October___________ November. __ ... December____________ 194S Ja n u a ry ... __________ February_____ _____ M arch_______ _ . . April___________ . _ M ay______________ . June_____ . . . . . . Ju ly _________________ August________ September.. _ __ October____________ . November . . . . . . . . >Includes persons on public emergency projects. A decline of 500,000 in the male civilian labor supply was more than offset by an increase in the female labor force (table 1). Simi larly, a decrease in the number of workers under 25 years of age was more than balanced by increases in the older age groups (table 2). Nonagricultural employment showed a sizable increase between October and November, while the number of persons working on farms declined seasonally. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 197 Trend of Employment and Unemployment T able 2.— Estimated Civilian Labor Force, Employment and Unemployment, by Age Groups, October and November 1940, 1941, and 1942 1 [Source: U. S. Department of Commerce, Bureau of the Census] 1941 1942 Labor-market status and age Novem ber October Novem ber 1940 October Novem ber October Estimated number (millions of persons) Labor force__________________________ 14 to 24 years_____________________ 25 to 54 years_________________ . . . 55 years and over______ _________ Employed______________ __________ 14 to 24 years______________ _____ 25 to 54 years______ . ___________ 55 years and over___. . . _. ________ Unemployed________________________ 14 to 24 years ___________ ___ ... 25 to 54 years_______________ _____ 55 years and over................... .......... . 54.5 11.5 34.0 9.0 52.8 11.0 33.2 8.6 1.7 .5 .8 .4 54.0 11.8 33.7 8.5 52.4 11.3 32.9 8.2 1.6 .5 .8 .3 54.1 11.9 34.3 7.9 50.2 10.6 32.2 7.4 3.9 1.3 2.1 .5 54.1 12.0 34.0 8.1 50.2 10.7 32.1 7.4 3.9 1.3 1.9 .7 53.7 12.2 33.7 7.8 46.3 9.6 30.0 6.7 7.4 2.6 3.7 1.1 54.4 12.5 34.0 7.9 47.0 9.9 30.4 6.7 7.4 2.6 3.6 1.2 Unemployment rate 2 (percent) 3 All age groups_______________________ 14 to 24 years_____________________ 25 to 54 y e a rs____ . .............. ...... 55 years and over_________________ 3.2 4.3 2.5 4.3 3.0 4.4 2.2 4. 1 7.3 10.6 6.0 7.8 7.2 11.0 5.8 7.9 13.7 21.3 11.0 13.8 13.6 21.1 10.7 14.1 Percentage distribution of unemployed 3 All age groups--------------- -----------------14 to 24 years______ . . . . ___ _ ._ 25 to 54 years---- ------- --------------- ._ 55 years and over_____________ . .. 100.0 28.5 49.0 22.5 100.0 32.2 46.2 21.6 100.0 31.9 52.1 16.0 100.0 33.5 50.1 16.4 100.0 35.2 50.2 14.6 100.0 35.8 49.2 15.0 1 All data exclude persons in institutions. Persons on public emergency work projects are included with the unemployed. 2 Unemployed as a percent of labor force in each age group. 3 Percentages computed from unrounded numbers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications o f Labor Interest JANUARY 1943 Consumer Problems By Gottfried Haberler. New York, National Bureau of Economic Research, Anc., 1942. 239 pp.’ charts. (Studies in consumer installment financing, No. 9.) $2.50. Final and capstone” report in the series of studies on consumer installment credit. Subjects covered include types and institutions of installment credit, ways in which such credit may influence economic stability, causes and economic consequences of installment-credit fluctuations, and the problem of control of such credit. One of the appendixes contains the text of Government regulations on installment credit. C o n s u m e r i n s ta llm e n t c r e d it a n d e c o n o m ic f lu c tu a tio n s . By Duncan McC. Holthausen. (In Survey of Current Business, U. S. Department of Commerce Washington, November 1942, pp. 9-25, charts. 15 cents, Superintendent of Documents, Washington.) The article emphasizes the recent reduction of short-term consumer debt, ex plains the causes, and describes the bearing of the reduction on consumption prices, taxation, and savings. M o n t h l y e s tim a te s o f sh o r t-te r m c o n s u m e r d e b t, 1 9 2 9 -4 -2 . Washington, U. S. Office of Education, 1942. 42 pp., bibliography. (Pamphlet No. 94.) Report of a conference on consumer education Reid in Washington, D. C., June 3-5, 1940. Covers assumptions upon which programs of consumer education should be based ; scope and minimal essentials of such education at the secondary school level; methods of organization; teaching methods; sources of teaching ma terials; and pre-service and in-service teacher training. S o m e p r i n c i p l e s o f c o n s u m e r e d u c a tio n a t th e s e c o n d a r y sc h o o l le v e l. Cooperative Movement o n c r e d it u n io n s . By David A. Bridewell. New Bender & Co., 1942. xvii, 835 pp., bibliography. $6.50. B r id e w e ll York, Matthew The volume contains digests and analyses of Federal and State legal provisions concerning credit unions, a glossary of legal words and terms, sources of creditunion information, and a list of credit-union supervisory officials. E l c r é d ito r u r a l. By Alfonso Rochac. San Salvador, El Salvador, Banco Hipotecario de El Salvador, 1942. 256 pp. 3d ed. Discussion of the value and functions of the cooperative association in providing rural credit and of the need for extension of the system in El Salvador, with brief summaries of the movement in other countries. F r o z e n f o o d lo c k e r p l a n t s i n S o u th D a k o ta . By W. P. Cotton and F. U. Fenn. Brookings, South Dakota State College, Agricultural Experiment Station, 1942. 28 pp., charts. (Bull. No. 360.) Gives service charges, income, and operating costs for cold-storage plants in South Dakota, and discusses the advantages of such plants from the points of view of operators and patrons. The report notes 135 plants altogether in the State, but of the 101 which reported, only 5 percent were cooperatively owned. M a n u a l f o r c o o p e r a tiv e d ir e c to r s . By V. S. Alanne. Superior, Wis., Cooperative Publishing Association, 1942. 270 pp. 2d ed., rev. E ditor’s N ote —Correspondence regarding the publications to which reference is made in this list should be addressed to the respective publishing agencies mentioned. Where data on prices were readily available, they have been shown with the title entry. The amounts do not include postage, and also they are subject 198 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest 199 Cooperativismo em Pernambuco. By Nobrega de Siqueira. (In Boletim do Ministerio do Trabalho, Industria, e Comércio, Rio de Janeiro, April 1942, pp. 249-263; May 1942, pp. 270-275.) Account of the development of cooperative societies, including consumers’ cooperatives, in the Brazilian State of Pernambuco, with some statistics. Cost and Standards of Living [Budget, consumption, and retail consumers survey, Texas]: Progress reports— No. 1, Family expenditures and per capita consumption in 9 Texas communities; No. 2, Family expenditures in 21 Texas communities; No. 3, Family income and ex penditures by occupational groups in 24 Texas communities; No. 4, Consumer opinions, habits, and preferences with reference to retail purchases in 9 Texas communities. By F. A. Buechel and Edward R. Dedeke. Austin, Uni versity of Texas, Bureau of Business Research, 1942. Various paging; mimeo graphed. $1 for the series. Rural family living— the situation, early 1942. Washington, U. S. Bureau of Home Economics, 1942. 65 pp.; mimeographed. El costo de la vida obrera en México. By Pedro Merla. (In Trabajo y Prevision Social, Secretaría del T rabajo y Previsión Social, México, D. F., July 1942, pp. 11—38.) After reviewing the history of cost-of-living investigations in the U nited States and Mexico, the author discusses factors affecting the cost of living of the Mexi can worker, including climatic conditions, earnings, and purchasing power of the Mexican peso, giving some statistics. Padrâo de vida dos operários em Sâo Paulo. By Oscar Egidio de Araujo. (In Boletim do Ministério do Trabalho, Industria, e Corrércio, Rio de Janeiro, March 1942, pp. 81-96; April 1942, pp. 72-94.) Report on cost-of-living budget studies for workers’ families in the city of Sâo Paulo, Brazil, made in 1934, 1936, and 1941. Budgets familiaux de la population salariée [Switzerland], 1936—37 et 1937—38. Berne, D épartem ent Fédéral de l’Économie Publique, 1942. 237 pp., charts. (42e supplément de la “ Vie Économique.”) This budgetary study covered 1,454 families for 1936-37 and 590 for 1937-38, including families of wage earners and salaried employees and of civil servants. Economic and Social Problems Distribution costs—wasting at the bunghole. By Edwin G. Nourse. Washington, Brookings Institution, 1942. 25 pp. (Pam phlet No. 42; Chapter V III of the forthcoming book “ Price-making in a democracy.”) 25 cents. Deficiencies in distributive industry are not so much in the physical handling of goods as in sales promotion work and in price policies, the author concludes. Producers, he holds, are in p art responsible for the maintenance of selling prices by m anufacturers. A post-war problem is noted, namely, th a t of continuing the simplified and direct methods of distribution brought about under the pressure of wartime requirements. The economics of 1960. By Colin Clark. London, Macmillan & Co., 1942. 118 pp., charts. 8 s. 6 d. ($2.75, Toronto). The author attem pts to make extensive comparisons of real income per “ occu pied person in work” and per head of the population in a large number of countries over the period 1909 to 1938. The international units used are defined as equal to the average purchasing power of $1 in the United States in th e years 1925 to 1934. On the basis of a detailed study of the recent past an effort is made to indicate “th e most probable course of world populations, industrial developments, prices, capital movements and interest rates over the next 20 years.” The inter national comparisons of real income, although broadly significant, m ust be used in the light of the lim itations of the available data and of significant differences in types of economic society not necessarily reflecting real differences in economic well-being. Goals for America: A budget of our needs and resources. By S tuart Chase. New York, Tw entieth Century Fund, 1942. 134 pp. (In the series of studies on “ When the war ends.”) $1. The term “ budget” is defined not as a financial statem ent b u t as “ a balance between work, skill and plant on the one side, and the physical needs of the whole population on the other.” The point of view emphasized throughout is the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 200 Monthly Labor Review—January 1943 maintenance of full employment not merely during the immediate period of conversion to peacetime production after the war but as a perm anent public The integration of Federal and non-Federal research as a war problem. By Richard H. Hemdel. Washington, U. S. N ational Resources Planning Board, 1942. 122 pp.; mimeographed: (Technical paper No. 9 .) An inquiry into the “farming ou t” of research problems by the Federal Govern ment, including the contracting” or “subcontracting” of research. The study is illustrative rather than exhaustive. In the field of labor some of the activities o t is nature sponsored by the D epartm ent of Labor are mentioned in the sec tions on Labor research” and “ W artime research on post-war problems.” Mexicans m the _United, States—a bibliography. Washington, Pan American Union, Division of Labor and Social Information, September 1942. 14 dd • mimeographed. (Bibliographic series No. 27 ) Indudes references on agricultural labor, industrial labor, and social problems of Mexicans in the United States. Social institutions in an era of world upheaval. By H arry Elmer Barnes New York Prentice-Hall, Inc., 1942. 927 pp., bibliography. $ 5 .3 5 . Description and appraisal of our institutional equipment in a period of farreaching and unpredictable social change. Subjects discussed include the founda tion and framework of so_cial_ institutions, economic institutions in an era of world crisis, political and legal institutions in transition, communication and the forma tion of public opinion, family and community disorganization, and institutions promoting richer living. Education and Training Guidance problems in wartime. Washington, U. S. Office of Education, 1942 bl 3l 1?g roRhy’ f11Uo (Educatlon and national defense series, pam phlet JNo. 18.) 20 cents, Superintendent of Documents, Washington. Job training for victory: A condensed guide to programs authorized by Congress to tram persons for work in defense industries, governmental agencies, and the armed services. Washington, U. S. Office of Education, 1942. Folder. Rev. ed. Regulations governing education and training of war workers, pursuant to public law W 7’ 77th.Congress,2d session approved July 2, 1942, issued by United States Commissioner of Education, August 11, 1942. Washington, [U. S. Office of Education], 1942. 19 pp.; mimeographed. Vocational education and the war industries training program New York Oitv Board of Education, 1942. 43 pp., chart, illus. y’ schoolsrep0rt outlines the war industries training program of New York City A evolugào das escolas de aprendizes artifices [Brazil]. By Valdomiro Fetterm ann May 1 9 4 ™ p p ° ^ mn f n ° d° Trabalho’ In d astria e Comércio, Rio de Janeiro,' the- aPPreniiceship-education movement in Brazil, commemoratine c o u n U y l anm versary of the establishm ent of apprenticeship schools in th a t Employment and Unemployment The concept of unemployment. By Clarence D. Long. (In Q uarterly Journal of Economics, Cambridge, Mass., November 1942, pp. 1-30. charts. $1.25.) I a author summarizes theoretical discussions of unemployment, attem pts to edefine unem ployment from different points of view, and makes suggestions for modifying statistical researches by taking account of the different uses of unem ployment data He emphasizes the view th a t there is no single, all-use measure of Sa^H Pl+°ym ent' w T ° m au! coacePts are developed: Gross unem ployment, de signed to approach the problem from the psychological, social, or political poikt of problem d ^ unemPloym ent>bearing prim arily on unem ployment as a production https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest 201 Democracy against unemployment: An analysis of the major problem of post-war planning. By William H. Stead. New York, H arper & Bros., 1942. 280 pp., charts. $3. Causes of unem ployment are analyzed and various programs for keeping recur rent unem ployment to a minimum are described. I t is stated th a t the central problem of unemployment is the maldistribution of purchasing power. There is a discussion of measures viewed as vital in an attack on this central problem of income distribution and purchasing power in relation to unem ployment in the post war period. Effect of the war on textile employment. By R uth E. Clem. Washington, U. S. Bureau of Labor Statistics, 1942. 14 pp., chart. (Serial No. R. 1480, reprint from September 1942 M onthly Labor Review.) Tree. Colocagao do trabalho no Brasil. By Stanislau Lischlowitz. (In Revista do Servigo Público, D epartam ento Administrativo do Servigo Público, Rio de Janeiro, M av 1942, pp. 18-20.) Discussion of the placement of workers in Brazil, a country m which, according to the author, unemployment, as a phenomenon of great proportions, is unknown. Food and Nutrition The feeding of war workers—a selected, annotated bibliography. Princeton, N. J., Princeton University, Industrial Relations Section, October 1942. 15 pp.; mimeographed. (Bibliographical series No. 70.) 25 cents. The food and nutrition of industrial workers in wartime. Washington, N ationa Research Council, 1942. 17 pp. (Reprint and circular series, No. 110.) Free. Discusses dietary and nutritional deficiencies, industrial health practices, and British experience' w ith nutritional conditioning _of arm y recruits and factory workers, and gives recommendations of the N ational N utrition Conference for Defense (Washington, May 1941), and of the Committee on N utrition in Industry of the N ational Research Council, concerning diets and nutrition of defense workers. Industrial lunchrooms in wartime. New York, National Industrial Conference Board, Inc., 1942. 28 pp., charts. (Studies m personnel policy, No. 48.) The relationship of nutrition to industrial efficiency, different types of lunch room service, initial costs in setting up lunchroom facilities, and m anagement problems, are covered. Proper kinds of food for workers in war industries. By May R. Mayers, M. D. (In Industrial Bulletin, New York D epartm ent of Labor, Albany, September 1942, pp. 300-302; also reprinted.) Outlines the nutrition campaign of the New York D epartm ent of Labor m the State war factories. Comedores populares en la América del Sur. By José Quintín Olascoaga. (In Asistencia, Secretaría de la Asistencia Pública, México, D. L., N ovem berDecember 1941, pp. 23-36.) . A brief discussion of the popular-restaurant system to be inaugurated in Mexico, and accounts of similar services in operation in Argentina, Brazil, Chile, Peru, and Uruguay. Health and Industrial Hygiene Civilian health in wartime. By Lrancis R. Dieuaide, M. D. Cambridge, Mass., H arvard University Press, 1942. 328 pp., bibliography. $2.50. Subjects discussed include nutrition; safety from infectious diseases; health ol workers, children, and the aged; medical and nursing services; and m ental attitudes and morale. Health of the war worker. London, Labor Research D epartm ent, 1942. 41 pp. 2 d ed. 6d. , _, , , . ... Designed for the use of workers’ organizations, the pam phlet deals w ith acci dents, hours of work, dangers from T. N. T. and tetryl in shell-filling factories, factory medical service, and methods by which workers can improve health conditions in industry. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review—January 1943 202 Major studies of fatigue. By R. R. Sayers, M. D. (In W ar Medicine, Chicago, September 1942, pp. 786-823. $1.25.) Reviews studies on the relationship of fatigue to health, accidents, and effi ciency, and on methods of detecting and preventing industrial fatigue. Periodic health examinations—important findings among garment workers. By Leo Price, M. D. (In Industrial Medicine, Chicago, August 1942, pp. 369373. 50 cents.) Report on the medical work of the Union H ealth Center in New York City, w ith statistical d ata for the year 1941. Housing Building construction. 1941. Washington, U. S. Bureau of Labor Statistics, 1942. 130 pp.; charts. (Bull. No. 713.) 20 cents, Superintendent of Documents, Washington. Census tract data on population and housing, New York City, 1940. New York, Welfare Council of New York City, 1942. 342 pp., bibliography. Eighth annual report of Federal Housing Administration, for year ending December 81, 1941. By Abner H. Ferguson. Washington, Federal Housing Adminis tration, 1942. 56 pp., charts. 10 cents, Superintendent of Documents, Washington. Housing for war. (In Fortune, New York, October 1942, pp. 92-96 et seq., map, illus.; $1. Also reprinted.) Tells hbw the biggest worker migration in our history brings w ith it serious social and economic problems, and whpt is being done to solve them. La vivienda rural en la Argentina. By Juan L. Tenembaum . (In Boletín del Museo Social Argentino, Buenos Aires, July-A ugust 1942, pp. 196-207.) Statistics and discussion relating to various phases of rural housing in Argentina, based on the agriculture-grazing census taken in 1937, with a summ ary of steps taken since th a t tim e to remedy the worst features of the situation. The housing program in Ireland. By A rthur W. Bromage and Mary C. Bromage. (In Social Service Review, Chicago, September 1942, pp. 497-519. $1.25.) Industrial Accidents and Accident Prevention Industrial injuries in the United States during 1941- By Max D. Kossoris; Washington, U. S. Bureau of Labor Statistics, 1942. 27 pp., charts. (Seria No. R. 1481, reprint from September 1942 M onthly Labor Review.) FreeElectrical injuries in California industries, July 1, 1941, to June 30, 1942. Sac ram ento, Industrial Accident Commission, 1942. 29 pp.; mimeographed. Summary and analysis of accidents on steam railways in the United States subject to Interstate Commerce Act. W ashington, U. S. In terstate Commerce Com mission, Bureau of T ransport Economics and Statistics, 1942. 119 pp., charts. (Accident bull. No. 110.) 25 cents, Superintendent of Documents, Washington. Labor safety service. A report by the labor members of the National Committee for th e Conservation of Manpower in War Industries. Washington, U. S. D epartm ent of Labor, Division of Labor Standards, 1942. 11 pp. Proceedings of thirteenth All Ohio Safety Congress, Columbus, April I 4- I 6 , 1942. Columbus, Industrial Commission of Ohio, 1942. 576 pp. Proceedings of Pennsylvania Industrial Safety Conference, Harrisburg, June 5, 1942. Harrisburg, D epartm ent of Labor and Industry, 1942. 72 pp., illus. Safety in construction work, other than building erection, in the United States. By Swen Kjaer. (In Industrial Safety Survey, International Labor Office, Mon treal, July-Septem ber 1942, pp. 81-96, illus. 50 cents.) Safety promotion is discussed, but the article deals mainly with accident experience. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest 203 Suggestions for teaching safety engineering war training classes. Prepared for National Committee for the Conservation of Manpower in War Industries. Washington, U. S. D epartm ent of Labor, Division of Labor Standards, 1942. 46 pp. ; processed. The methods and aids for teaching safety engineering listed in the manual were selected for their suitability for effective instruction of key supervisory employees in accident prevention and control. Labor Laws and Court Decisions The worker, his job, and his government—an introduction to Federal labor laws. Prepared jointly by U. S. Office of Education, and Division of Labor Stand ards U. S. D epartm ent of Labor. Washington, 1942. 63 pp. (Office of Education, Vocational division bull. No. 220; Defense training series No. 1.) 15 cents, Superintendent of Documents, Washington. New York labor laws enacted in 1942. New York City, State D epartm ent of Labor, 1942. 71 pp. (Special bull. No. 211.) 30 cents. State occupational legislation. Washington, U. S. Bureau of Foreign and Domestic Commerce, 1942. 457 pp., charts. (A M arketing Laws Survey publication.) Analysis of State laws regulating 24 occupations and professions which have been brought under State control. The theory underlying enactm ent of such legislation is th a t the occupations regulated are ones in which the public health, safety, morals, or welfare would be endangered unless the qualifications and activi ties of persons engaged in them are regulated or controlled. Wage and hour cases: Report of opinions of Federal and State courts relating to minimum wages, maximum hours, overtime compensation, child labor, with case table and index-digest. Washington, Bureau of N ational Affairs, Inc., 1942. xviii, 1332 pp. $9. The industrial laws of New Zealand. By A. J. Mazengarb. W ellington, B utterworth & Co. (Aus.), Ltd., 1940. 490 pp. 55s. ($16.50, Butterw orth, l o ronto). Groups the industrial laws by subject and shows their evolution. Labor Organizations and Congresses History of the American trade-union movement. By David J . Saposs. Chicago, U nited T ransport Service Employees of America, 1942. 34 pp.; mimeo graphed. 25 cents. „ , TTr , , Study outline of the history of the labor movement to the first W orld War <1792-1918). Forty-first annual directory of labor organizations in Massachusetts, 1942 (with statistics of membership, 1938-1942). Boston, D epartm ent of Labor and Industries, 1942. 112 pp. (Labor bull. No. 186; Public document No. 15.) List of American trade-union journals and labor papers currently received by Depart ment of Labor Library. Washington, U. S. D epartm ent of Labor, Library, October 15, 1942. 38 pp.; mimeographed. Free. Forty-fifth annual report of Scottish Trades Union Congress, 1942. Glasgow, 1942. 249 pp. Is. , Includes reports on the organization of women committee and the youth advisory council. Manpower Breaking the skilled labor bottleneck: How to subdivide labor skills to gain maximum production. By Eugene J. Benge. New \o r k , N ational forem en s Institute, 1942. 47 pp., diagrams. $2. Subjects covered include the nature of skill and methods of overcoming labor shortages. Control of manpower. Bv Buel W7. Patch. Washington, Editorial Research Re ports, 1013 13th Street N W , 1942. 18 pp. (Vol. 2, 1942 No. 12 .) $1. Activities in the control of manpower in the United States, Great Britain, and ■Canada, and future needs and prospects in the United States, are discussed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 204 Monthly Labor*Review—January 1943 Investigation of the national defense program: Preliminary report on manpower By Special [Senate] Committee Investigating the N ational Defense Program 77th Congress, 2 d session. Washington, Government Printing Office 1942' 7 pp. (Senate report No. 480, p art 2 .) Manpower Hearings, October and November 1942, before Committee on Military Affairs, United States Senate, 77th Congress, 2 d session, on S. 2397 etc bills relating to the manpower of the United States. Washington Govern ment Printing Office, 1942. 248 pp. Rev. ed. Includes statem ents by civilian Government officials, Army and N avy officers and others; an address by Daniel J. Tobin, president of T eam sters’ Union on his survey of labor conditions in England, made a t the request of the President of the United States; and (in an appendix) a statem ent on steps taken by the War Manpower Commission to im port Mexican workers for agricultural employment m California. ' ^ J Sixth interim report of Select Committee Investigating National Defense Migration, U. S. House of Representatives: Changes needed for effective mobilization of man power. W ashington, Government Printing Office, 1942. 43 pp (House report No. 2589, 77th Cong., 2d sess.) J1 1 This is the com mittee’s fourth report on the war production program and con tains further recommendations on mobilization of the N ation’s manpower for the all-out war effort. Wage and manpower controls in Canada. By Bryce M. Stewart, D eputy M inister of Labor of Canada. New York, American M anagement Association 1942 16 pp. (Personnel m anagem ent series, No. 5 9 .) Covers governmental machinery established and its application to the m an power situation. Labor conscription. By Charles S. Slocombe. (In Personnel Journal New York December 1942, pp. 194-206. 75 cents.) ’ An account of English and German experience in the field of manpower control and a presentation of argum ents in opposition to a draft of labor in the United States. I t is stated th a t the use even of restricted compulsory measures in England has been of doubtful value. The effort to control manpower by compulsory measures in Germany is described as having given rise to grave problems with which the German Government is still struggling. Several suggestions are offered for the adoption of voluntary means to make the best use of manpower. Manpower—a summary of the British experience. By Eric H. Biddle Chicago Public A dm inistration Service, 1942. 28 pp. (Publication No. 84.) 75 cents’ Sketches the mam framework of policy and adm inistration developed by the British Government in mobilizing manpower for total war. Occupations Air workers today. By Picture Fact Associates. New York and London Harper & Bros., 1942. 55 pp., chart, illus. $ 1 . ’ 1 Your career in plastics. By E. F. Lougee. New York, Plastics In stitu te [1942?] 14 pp. (Reprinted from “ The boy’s place in life,” McDonnell & Co’., Champaign-Urbana, 111.) Inform ation on occupational opportunities is tied in w ith a descriptive outline of the characteristics of different divisions of the plastics industry. The author formerly was editor of Modern Plastics (New Y ork). Your career in transportation: Employment opportunities in rail, highway water and air transport. By Norman V. Carlisle. New York, E. P. D utton & ’Co 1942. 188 pp., bibliography, illus. $2. War production occupations for vocational training. Washington U S Office of Education, 1942. 122 pp. Rev. ed. List of occupations issued by War Manpower Commission for which vocational training for war production workers may be given when need for training is established. 6 Personnel Management Company annual reports to employees. New York, N ational Industrial Confer ence Board, Inc., 1942. 32 pp., charts. (Studies in personnel policy, No. 47.) 1 he report covers the reasons for the practice of reporting by companies to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest 205 employees on business and financial operations, and gives an account of types and contents of reports and an evaluation of the results in employee interest and appreciation. Employee magazines. New York, M etropolitan Life Insurance Co., Policyholders Service Bureau, [1941?]. 73 pp., illus. Reviews the policies and goals of 282 employee magazines. Management’s personnel responsibility for all-out war effort: Proceedings of Per sonnel and Industrial Relations Conference, held at Purdue University, May 15-16, 19f2. Lafayette, Ind., Purdue University, 1942. 77 pp. (Engineer ing bull., Vol. X X V I, No. 3; Extension series No. 54.) Free. Personnel selection by standard job tests. By Charles A. Drake. New York, McGraw-Hill Book Co., Inc., 1942. 147 pp., diagrams, illus. $2. Describes a new technique for the selection of industrial personnel, involving the designing of special performance tests th a t embody the essential elements of dexterity and perception discovered by the analysis of an industrial job or the analyses of a group of similar jobs. The status of personnel practices in the Pacific Northwest. By Robert A. Sutermeister. (In N orthw est Industry, U niversity of Washington, Bureau of Business Research, Seattle, April 1942, pp. 1-11; mimeographed.) Free. Based on inform ation furnished by 114 firms, with 118,993 employees, in Idaho, M ontana, Oregon, and W ashington. Sixty percent of the firms were working on war orders but only 15 percent were engaged full tim e on war production. Post - War Reconstruction After the war? By Maxwell S. Stewart. New York, Public Affairs Committee Inc., 1942. 32 pp., charts. (Public affairs pam phlet No. 73.) 10 cents. Based largely on reports of the N ational Resources Planning Board relating to domestic post-war planning and on various studies on planning in the international sphere. It is pointed out th a t our first concern m ust be to provide jobs for all for the purpose of producing things needed. It is necessary to recognize the fact th a t w ith suitable arrangem ents it will be possible not only to produce the things needed b ut also to pay for the things produced. Plans for a post-war world. Compiled by Julia E. Johnsen. New Vork, H. W. Wilson Co., 1942. 238 pp., bibliography. (Reference Shelf, Vol. 16, No. 2.) $1.25. A companion volume to two previous numbers of the Reference Shelf— In ter national Federation of Democracies (proposed) and The “Eight P oints” of PostWar World Reorganization. Post-war agenda. W ashington, U. S. N ational Resources Planning Board, 1942. Folder. T entative outline prepared for purposes of discussion by public and private agencies in the formulation of plans for post-war reconstruction. Post-war planning. W ashington, U. S. N ational Resources Planning Board, 1942. 32 pp. Discusses plans for demobilization of the arm ed forces and of war industries after the war. Regional resource development. By Alvin H. Hansen and H arvey S. Perloff. Washington, N ational Planning Association, 1942. 40 pp. (Planning pam phlet No. 16.) 25 cents. I t is stated th a t a comprehensive development program in the U nited States, such as is discussed in this pam phlet, is necessary to assure the continuance after tne war of substantially full em ployment and the expansion of national income as rapidly as technical progress will perm it. Such a program, it is estim ated, will call for a public investm entof about $ 2 ,000 ,000,000 per year forthe next generation. Post-war reconstruction in Great Britain. By H. Finer. (In Canadian Journal of Economics and Political Science, Toronto, November 1942, pp. 493-513. $ 1 .) The proposals for reconstruction are grouped under five headings—physical reconstruction, development of the social services, education, machinery of gov ernm ent, and reconstruction of economic controls of the State over industry and commerce. 5011 5 2 — 43-------14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 206 Monthly Labor Review—January 1943 What it will be like in the new Britain. By Richard Acland. London Victor Gollancz, Ltd., 1942. 185 pp. 3s. 6 d. ($1.35, Ryerson Press, Toronto). th a t a now social atm osphere and a change in individuals are reouired to rebuild society after the war. Price Control and Rationing First quarterly report of U. S. Office of Price Administration, for period ended April 80,1942. Washington, 1942. 239 pp., charts. J.n adi ii |on to iufo™ ation on the organization, procedure, and activities of the Office of Price A dm inistration, the report contains an account of price-control activities carried on under executive authority since the launching of the national defense program. Appendixes include price schedules and regulations, histories of price actions concerning m any individual commodities, and a short chapter on prices and price control in World War I. How to win on the home front. By Helen Dallas. New York, Public Affairs Committee, Inc., 1942. 32 pp. (Public affairs pam phlet No. 7 2 ) 10 cents. Tins pam phlet, based upon reports from official Government sources, explains the necessity for price control, rationing, and credit control, and gives suggested m arket lists for low-cost meals, and hints on stretching the food dollar and on how to shop for clothing and various household items. Progress of price regulation to September 1942. By Saul Nelson. W ashington U. S. Bureau of Labor Statistics, 1942. 21 pp., charts. (Serial No R I486’ reprint from October 1942 M onthly Labor Review.) Free. French price control from Blum to Petain. By Louis Franck Washington Brookings Institution, 1942. 57 pp., chart. (Pam phlet No. 4 3 .) 50 cents’ General price-control measures in France date from the enactm ent of the Popular Front laws in 1936. The economic and political background of the past 20 years is briefly outlined in this pam phlet, and the effects of the selective con trols, particularly of w heat and rent, which were never brought w ithin the scope of the general price-control legislation, are described. The scope, adm inistration and results of pre-war and w artim e price control, and the control system followed by Vichy, w ith the widespread development of black markets, are discussed. Wartime rationing and consumption. Geneva, League of N ations, Economic ^ Intelligence Service, 1942. 8 ? pp., charts. $ 1 . The study is concerned mainly w ith the im pact of war controls and rationing on consumption and standards of living in continental Europe and G reat Britain Sickness Insurance and Medical Care B lu e ( boss hospital service plans protect individual and national health By C Rutus Rorem. Chicago American H ospital Association, H ospital Service Plan Commission, [1941?]. 8 pp. Describes the benefits and operation of the plans. National health insurance fund accounts [Great Britain] for year ended December 31 1940. London, Exchequer & A udit D ep a rtm en t,'1942. 30 pp 6d t he report covers receipts and expenditures of the English, Welsh, and Scotch health-insurance funds for the year 1940. 0 seguro-enfermidade na América do Sul. By Rudolf Aladàr Metall. (In Boletm i do Ministério do Traballio, Industria e Comércio, Rio de Janeiro June 1941, p p . 219-245.) Analysis of sickness-insurance legislation enacted in Chile, Ecuador Peru and Venezuela, w ith statistics of its operation in Chile, Ecuador, and Peru during various periods, 1936 to 1940. Inform ation is also given on steps taken in the direction of sickness-insurance legislation in Argentina, Bolivia, Colombia Paraguay, and Uruguay. Social Security General Proceedings of Institute on Employment Security, University of Minnesota, May 12-17, m U - Mmneapohs, U niversity of Minnesota, Center for Continualion Study, 1941. 38 pp. ; mimeographed. 1he report summarizes the speeches and discussions of the conference. Sub jects treated include the problem of economic security, economic implications https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest, 207 of unem ployment compensation, merits and defects of unem ployment com pensation and em ployment service, and farm placement and the migratory worker. War and post-war social security. By A rthur J. Altmeyer and others. Washing ton, American Council on Public Affairs, 1942. 89 pp. $1. The articles in the symposium deal w ith fundam ental principles and programs of social security, war and post-war problems and the goals to be aimed at, reor ganization and development of unemployment compensation and old-age and survivors’ insurance, and establishm ent of a health-insurance system. Derecho de pensión en las leyes nacionales de previsión social, 4349, 10,650, 11,110, y 11,575 [Argentina,]. By H um berto A. Lestani. (In Derecho del Trabajo, Buenos Aires, July 1942, pp. 292-301.) Analysis of provisions for survivors’ pensions under each of the four national social-insurance laws of Argentina. A previdencia no Instituto de Aposentadoria e Pensóes dos Comerciários [Brazil], By José Vitorino de Lima. (In Boletim do Ministerio do Trabalho, In dustria e Comercio, Rio de Janeiro, August 1941, pp. 218-237.) Legislative history of the Brazilian Retirem ent and Pension In stitu te for Personnel in Commerce since its authorization in 1934, and detailed analysis of its provisions for insurance against sickness, invalidity, and old age, for survivors’ benefits, and for birth and funeral benefits. Statistics of operations of these forms of social insurance as of April 30, 1941, are given for each of 10 States and the Federal D istrict. La seguridad social [Chile], By Julio Bustos A. Santiago de Chile, Talleres Gráficos “ La Nación,” S. A., 1942. 174 pp., pasters, charts. The first p art of the volume is devoted to a discussion of the bases for organizing social insurance, risks insured against, and financial and adm inistrative organiza tion. The second part describes the coverage and activities of the various socialinsurance schemes in Chile. A G overnment bill subm itted in 1941 for the reform of the existing social-insurance system is presented. La memoria de la Caja Nacional de Seguro Social | Peru], 1941. (In Informaciones Sociales, Caja Nacional de Seguro Social, Lima, second quarter 1942, pp. 135-194 and tables.) This report of the Peruvian N ational Social Security Fund for 1941 gives statistics of operation of workers’ hospitals established by the Fund, coveiing service furnished, num ber of persons hospitalized, cash benefits, etc., and also a sum m ary of social-insurance legislation enacted in 1941. Un eraplo ym en t Compensa ti on An analysis of various benefit formulae [under Iowa unemployment compensation law]. Des Moines, Iowa Unemployment Compensation Commission, 1941. 156 pp., charts; mimeographed. Unemployment compensation in Ohio. By W alter J. Mackey. Columbus, Ohio, Atlas Publishing Co., 1942. 548 pp. $6.50. Analysis of provisions of the Ohio unemployment-compensation law. One section‘of the volume is devoted to a discussion of experience rating. The ap pendixes contain the texts of the Ohio law and am endments and of the regulations and rules issued by the compensation bureau and the board of review. Adequacy of [unemployment] benefit payments in Pennsylvania during 1940—1941 benefit year. Harrisburg, D epartm ent of Labor and Industry, Bureau of Unemployment Compensation, 1942. 21 pp., charts; mimeographed. (Statistical inform ation bull. No. 27.) Examines the benefit claims of 35,028 applicants whose benefit years ended in 1941, showing the extent to which periods of unem ployment were compensated. Unemployment compensation rights of workers employed in more than one State By Ida C Merriam and Elizabeth T. Bliss. W ashington, U. S. Social Security Board, Bureau of Research and Statistics, 1941. 8 / pp., charts, processed. Discussion of the problems of loss or curtailm ent of benefit rights arising from the interstate movement of workers covered by State unemployment-insurance systems. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 208 Monthly Labor Review—January 1943 II ages and Hours of Labor Overtime payments and wages in manufacturing, March 1941 and March 191+2. By Robert A. Sayre. (In Conference Board Management Record, N ational Industrial Conference Board, New York, November 1942, pp 341-352 charts.) A study of straight-tim e hourly earnings and hours, and overtime hourly earnmgs and hours, in m anufacturing industries from which the N ational Industrial Conference Board obtains reports. In 27 industries combined, average hourly earnings for regular work rose 11.6 percent and the average for all work rose 14.3 percent from M arch 1941 to M arch 1942. The average am ount of overtime work per week rose from 6.6 to 7.4 hours. The average num ber of over time hours in M arch 1942 ranged from 2.2 per week in m eat packing to 12.5 in the m anufacture of machines and machine tools. Wages arid labor relations in the railroad industry, 1900-191+1: Historical survey and summary of results. New York, Bureau of Inform ation of the Eastern Railways, [1942]. 346 pp., charts. Extensive tabulations of wage data, largely from the reports of the In terstate Commerce Commission. In the interpretation of the statistical data, the point of view is critical of wage increases as having impaired the claims of stockholders. 11 ages as cost and as market. By Edwin G. Nourse. W ashington, Brookings Institution, 1942. 43 pp., charts. (Pam phlet No. 4 4 ; C hapter IX of forthcoming book “ Price-making in a democracy.”) 25 cents. A discussion of the relationships of wages, prices, and the general levels of em ployment and consumption. It is pointed out th a t increases in wage rates do not necessarily mean increases in labor cost and th a t the upward trend of wage rates in the past has been accompanied by a downward trend of unit cost and frequently of prices. There is a discussion of three possible channels for distrib uting the gains resulting from improved productive efficiency: profit expansion wage raising, and price lowering. The role of union officials as “ price-making executives” is described. Resumen de los reajustes de precios de pulpería, sueldos y salarios efectuados en las empresas mineras “ Patino Mines,” “Bolivian Tin (fe Tungsten,” “Armayo Mines Co.,” y “Oploca de Bolivia.” (In Boletín del Ministerio del Trabajo ¡salubridad y Previsión Social, La Paz, October 1941, pp. 77-105.) Detailed tables showing increases in retail prices of articles sold in company stores of four large Bolivian mining concerns, and corresponding adjustm ents in o'ng?n,fnd p a r i e s of their employees, made in accordance w ith a decree of June A t 1940, which provides th a t if prices are increased wages and salaries shall be increased ni like proportion. (See Bureau of Labor Statistics Serial No R 140o, or M onthly Labor Review, October 1941, p. 991, for digest of decree ) II omen in Industry Womanpower to supplement manpower. H artford, M anufacturers Association of Connecticut, Inc., 1942. 31 pp., illus. Compilation of inform ation on em ployment of women, prepared for the use ol Connecticut industry, which is said to have already “reached a critical point on m a n p o w e r . T h e pam phlet contains m aterial on preparatory steps; types ot work; supervision, recruiting, and training; hours of work; equal pay for equal performance; fatigue and absenteeism; and British experience. 11 omen after college: A study of the effectiveness of their education. By Robert G. Foster and Pauline Park Wilson. New York, Columbia U niversity Press’ 1942. 305 pp., charts. $2.75. A study of case histories of college graduates to determine, if possible, how far education had contributed or could contribute to their preparation for and orientation to life. Women in war work. By Michael H. Froelich. (In Aero Digest, New York September 1942, pp. 132 et seq., illus. 50 cents.) Describes the _experience of individual aircraft companies in introducing woman workers into their factories, showing the classes of women employed how sociological and industrial problems have been solved, methods of training women, types of work women are doing, their aptitude for the work, and their value to the industry. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest 209 Needed—women in Government service. By Dickey Meyer. New Lork, Robert M. McBride & Co., 1942. 220 pp., illus. $2. Gives information as to where women are most needed in the Government service, not only in Washington b u t in their home towns, and also how to apply for positions and where free Government training for the positions can be obtained. The psychology of supervising the working woman. By Donald A. Laird. New York and London, McGraw-Hill Book Co., Inc., 1942. 202 pp., illus. $2. Safety and health problems of women in industry. Address by Mary Anderson, Director, U. S. Women’s Bureau, a t 31st N ational Safety Congress of N at ional Safety Council, Chicago. 111., October 27. 1942. Washington, U. S. Women’s Bureau, 1942. 10 pp.; mimeographed. Mobilization of women in Germany. By Judith Grtinfeld. (In Social Research, New York, November 1942, pp. 476-494. 75 cents.Q Description of the measures taken by the Nazis to recruit, train, allocate, and control women for labor in the various kinds of total-w ar service. Women of Latin American countries. By M ary M. Cannon, U. S. Women’s Bureau. (In Womans Press, New York, November 1942, pp. 468, 469, et seq. 25 cents.) , A survey of fields of employment engaged in by women in L atin American countries, w ith some discussion of protective legislation for employed women and of adult education. General Reports Cómo encaré la política obrera durante mi gobierno. By M anuel A. iresco. La Plata, Argentina, 1940. 2 vols. Account of the labor policy of the Government of the Argentine Province of Buenos Aires from 1936 to 1940, including discussion and statistics of labor dis putes and agreements, wages, weekly rest, industrial home work, housing, child labor, agricultural labor, workmen’s compensation, and dismissal compensation, and text of labor legislation enacted. Brazil 1940-41—an economic, social, and geographic survey. Rio de Janeiro, M inistry of Foreign Affairs, [1941?]. 382 pp. (In English.) This Brazilian yearbook includes information on geographical distribution of workers, minimum-wage legislation and rates, occupational associations (legisla tion and figures), regulation of working hours, regulation of the liberal professions, social insurance (legislation and figures), investm ent of funds of welfare institu tions, and protection of the family, especially through marriage loans and family grants. China’s war economy. By Lawrence K. Itosinger. (In Foreign Policy Reports, New York, November 15, 1942, pp. 218-232. 25 cents.) Discusses the serious inflation problem in China and governmental measures of control; the extent of industrial development during the war period, including the plight of the cooperatives, which have faced not only normal technical and economic problems of organization and operation but also political difficulties, the food problem; and social problems of agriculture. Informe a la Nación [del Ministro de Previsión Social y Trabajo, Ecuador], 1942. Quito, Ministerio de Previsión Social y Trabajo, 1942. 139 pp. This report of the Ecuadoran M inister of Social Welfare and babor for the period from August 20, 1941, through a p art of 1942, covers activities of his M inistry and some inform ation concerning colonization and allotm ent of public lands, cooperatives, minimum wage, industrial disputes, and the Social A elfare Institute. The report was to be supplemented by separates relating to specific p arts of the M inistry’s work. Labor in the [British] colonies: I. Some current problems. London, Victor Gollancz, Ltd., 1942. 47 pp. (Fabian Society research series No. 61.) Is. Report of New Zealand Department of Labor, for financial year April 1, 1941, to March 31, 1942. Wellington, 1942. 24 pp. Describes em ployment conditions, giving statistics of overtime hours, and. operations under the Factories Act and other labor laws. An appendix lists industrial unions of employers and of orwkers with membership figures. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 210 Monthly Labor Review—January 1943 Statistical abstract of Palestine, 1941. Jerusalem, Office of Statistics, 1941. xxii, 178 pp. Statistics relating to labor cover wages, employment, and labor disputes in 1940, and industrial accidents in 1939, w ith com parative d ata for earlier years. Extracto estadístico del Perú, 1940. Lima, Ministerio de H acienda y Comercio, Dirección Nacional de Estadística, [1942?]. Various paging. Cives certain wholesale and retail prices and index numbers, cost-of-living indexes, and statistics of industrial accidents, for the city of Lima; for the country as a whole, data on employment, with some figures on wages and hours, in the sugar, rice, wheat, cotton, and mining industries; num ber of employees in different industries; and results of a detailed cost-of-living budget study for 81 families in Lima. Rapports des inspecteurs fédéraux [Switzerland] des fabriques sur Vexercice de leurs fonctions pendant l’année 1941■ [Berne], D épartem ent Fédéral de l’Écono mie Publique, 1942. 108 pp., illus. Annual report on factory inspection in Switzerland in 1941, with information on shop sanitation, working hours, woman and child labor, welfare work, and accident-prevention measures. Printed partly in French and partly in German. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis u. S. G O V E R N M E N T P R I N T I N G O F F I C E : 1 9 4 3