Full text of Monthly Labor Review : June 1963, Vol. 86, No. 6
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Monthly Labor Review JU N E 1963 VOL. 86 NO. Worker Security in a Changing Economy . . . a special issue in honor of the C'etY 50th Anniversary of the U.S. Department of Labor UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz , Secretary BUREAU OF LABOR STATISTICS E wan C lague, Commissioner of Labor Statistics R obert J. M yers, Deputy Commissioner of Labor Statistics W. D uane E vans, Associate Commissioner for Systems Analysis and Economic Growth P aul R. K erschbaum, Associate Commissioner for Management and Field Operations H erman B. B yer, Assistant Commissioner J ack Alterman, Chief, Division of Economic Growth G ertrude B ancroft, Special Assistant to the Commissioner A rnold E. C hase, Assistant Commissioner for Prices and Living Conditions H. M. D outy, Assistant Commissioner for Wages and Industrial Relations J oseph P. G oldberg, Special Assistant to the Commissioner H arold G oldstein, Assistant Commissioner for Manpower and Employment Statistics L eon Greenberg , Assistant Commissioner for Productivity and Technological Developments P eter H enle , Special Assistant to the Commissioner R ichard F. J ones, Deputy Associate Commissioner for Management W alter G. K eim , Deputy Associate Commissioner for Field Operations L awrence R. Klein . Chief, Division of Publications (on leave) H yman L. L ewis , Economic Consultant to the Commissioner L eonard R. L insenmayer , Deputy Associate Commissioner for Program Planning and Publications F rank S. M cE lroy, Chief, Division of Industrial Hazards A be R othman, Chief, Division of Statistical Standards W illiam C. Shelton, Chief, Division of Foreign Labor Conditions R obert B. Steffes , Departmental Statistical Officer Regional Offices and Directors N EW ENGLAND REGION W endell D. M acdonald 18 Oliver Street Boston 10, Mass. 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Nevada Alaska New Mexico Arizona Oregon California Utah Colorado Washington Hawaii Wyoming Idaho Montana The Monthly Labor Review is for sale by the regional offices listed above and by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C.—Subscription price per year—$7.50 domestic; $9.00 foreign. Price 75 cents a copy. The distribution of subscription copy is handled by the Superintendent of Documents. Communications on editorial matters should be addressed to the editor-in-chief. Use of funds for printing this publication approved by the Director of the Bureau of the Budget (October 31,1962). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monthly Labor Review UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS Lawrence R. K lein , Editor-in-Chief (on leave) Mary S. B edell, Executive Editor CONTENTS Worker Security in a Changing Economy ii 611 612 614 618 620 622 630 636 645 652 659 666 674 676 687 695 701 The Contributors to This Issue Dedication A Prefatory Note The Workers’ Search for Security The Dynamic Nature of Workers’ Goals The Response to Change Public Systems for Distributing Risks to Security Management’s Adjustment to Change The Union Agenda for Security The Strike and Discontent The Security of Worker Institutions The Individual and the Union The Individual’s Legal Rights as an Employee Measures of Workers’ Wealth and Welfare Workers’ Wealth and Family Living Standards Social Expenditures and Worker Welfare The Economic Base and Limits of Social Welfare Chronology of Worker Security, 1931-63 Departments 703 705 707 716 727 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Significant Decisions in Labor Cases Chronology of Recent Labor Events Developments in Industrial Relations Book Reviews and Notes Current Labor Statistics June 1963 • Voi. 86 • No. 6 The Contributors to This Issue Our profound thanks go to the authors listed below, whose faithful and fruitful work resulted in this issue. We appreciate their forbearance in enduring many months of what must have seemed editorial tyranny, although no effort was made to make their views conform with any official policy respecting the general subject matter. The value of this volume is due to their efforts, and the Bureau of Labor Statistics remains in their debt. B enjamin A aron J oseph A. B eirne D aniel B ell J oseph W. B loch A lfred W. B lumrosen P hilip B ooth G eorge W. B rooks G erhard C olm E dward L. C ushman H elen H. L amale I da C. M erriam J oel S eidman Special acknowledgment' is due Secretary of Labor W. Willard Wirtz, Edward D. Hollander, Vice President of Robert R. Nathan Associates, and Commissioner of Labor Statistics Ewan Clague, whose introductory comments enrich and place in perspective the various sections of the volume. Finally, our grateful thanks to the members of the advisory committee, who graciously gave many hours to the planning of the issue and the review of manuscripts for it. P hyllis G room Special Issues Editor ii https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dedication As its part in celebrating the 50th anniversary of the U.S. Department of Labor, the Monthly Labor Review publishes this special issue devoted to the theme “ Worker Security in a Changing Economy.” The issue is inscribed in honor of working men and women, for whom the Department has sought to carry out the mandate of Congress “to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working conditions, and to advance their opportunities for profitable employment.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 011 Worker Security in a Changing Economy. . . T h e d i s t i n g u i s h e d c o n t r ib u t o r s to this special Anniversary Issue of the Monthly Labor Review have reviewed the structure of security that underlies American employment—and have properly raised questions as to its future adequacy. A majority of working Americans enjoy substantial personal security based primarily on wages and supported by a number of protective arrangements agreed upon privately or rendered as a m atter of public policy. Typically of America, the origins and the particulars of these arrangements are diverse. They range from seniority provisions and health and insurance benefits negotiated for limited numbers of employees in particular plants to income maintenance and social security laws of the widest general application. Yet this achievement in itself evokes the spirit of DeTocqueville’s remark that democratic nations are “haunted by visions of what will be.” Our wage system itself is only as old as the industrial revolution; the concept of “fringe benefits” became a bargaining force only 20 years ago; the Employment Act committing Government policy to the promo tion of maximum employment and production was passed only in 1946. In the long historical record, these appear as recent innovations. Yet the pace of change accelerates, and it already appears evident that new forms of security will be needed in an economy in which technological change is challenging traditional ideas of “work” and employment. The maker of goods has already lost his place at the center of our labor force. These changes have led to a revision in our concept of security as merely protection against disability, unemployment, the declining pro ductivity of advancing age, and other threats of wage loss. Security measures in the past were thought of as substitution or recompense for loss. Payments from a private fund or a public treasury were made in place of wages lost with the termination of employment. Employment offices sought new jobs to replace old ones. It is clear today that meaningful security cannot rest upon the narrow idea of wage replacement alone. Individual security in a tech nical economy is not assured by income maintenance during periods of layoff. Today, security depends to a large extent on ability to adjust, to meet change as it occurs. Worker security requires, then, an essential right to education, to job opportunity and advancement, and beyond these to the expectation of honorable treatm ent on the job. 612 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Prefatory Note W , W illard W irtz , S ecretary of L abor How to achieve this new security is at present the concern of many public and private organizations. I am pleased that the Monthly Labor Review, in keeping with its tradition for factual presentation based upon free inquiry, has included in this issue discussion of the relative responsi bilities of the individual worker and the institutions linked to his well-being. These institutions—labor unions, collective bargaining, agencies of Government, and the like—have long been accustomed to modes of action developed in earlier periods. They are, on the whole, instruments for achieving collective security or economic stability or both. Now, economic events—an inadequate growth rate, the decline in the number of production jobs, the rapidity of job alteration, the continuing plight of the unskilled—have made necessary an evaluation of the relationship between individual and collective security, between the individual himself and the organization that serves his desires for security. One other fact emerges from this examination of worker security. Far too many working people have none at all. Far too many others have only a limited form of security when it is measured against what the economy can afford. There is no question that curing the chronic weakness in our economy would be of some benefit in enlarging the em ployment opportunities of those, such as the unskilled Negro and the untrained youth, who suffer from severe unemployment rates. But raising the possibility of a permanent form of security for the under privileged jobseekers of our Nation can be little more than an intellectual exercise until basic educational needs are met and fundamental rights to opportunity are acknowledged. The progress of any inquiry into worker security stops, at present, on the doorstep of greater questions regarding equality. If individual workers and the institutions, both public and private, that protect them choose to table the question of equality, then the change sweeping through the economy will benefit only those prepared for it—while the others drift into a permanent limbo of uselessness. The question of security, in the last analysis, is directed to the conscience. When all men are respected, each man is more secure. When all men are able to reach a maximum of competence within their own natural limitations, then each man enjoys a chance. And when each man enjoys a chance, all men are secure. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 613 The Workers’ Search for Security D a n ie l B e l l * I have always thought it to be a lovely paradox that the most sophisticated defense of capitalism and the most inspired paean to revolution were couched in almost identical words. In 1842, the young Russian anarchist M. A. Bakunin published an article in the Deutsche Jahrbücher (forerunner of the Deutsche-Französische Jahrbücher which was later coedited by Karl Marx) in which he declared, in a phrase that soon became famous and was to be repeated by anarchists the world over, that “the will to destroy is a creative will.” One hundred years later, the Austro-Harvardian econ omist Joseph Schumpeter remarked (in his Capital ismSocialism, and Democracy, a book that sought to take the measure of Marx) that the saving, “essential fact about capitalism” is the process of creative destruction. “It is what capitalism con sists in and what every capitalist concern has got to live in.” 1 The destruction that Bakunin sought was a quick, frenzied, chiliastic act in which the existing social order would be torn up root and branch and replaced by a flowering of mutual self-help worker communities. The destruction that Schumpeter described was an incessant process in which the social map of the economy was being constantly reworked, not by the contrived will of any single person or band of persons, but unwit tingly by entrepreneurs who, spurred by new consumer demands and goaded by competition, 614 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis used the powers of technology to create new products, to alter existing markets, and to reshape industrial organizations; and in this grinding mill of competition—a competition not of price but of new commodities, new technology, and new types of organization—the old, the archaic, the anti quated, the unwanted, and the inefficient are driven to the wall.2 The further paradox is that the industrial worker has rejected both Bakunin and Schum peter. The industrial proletariat, as George Ber nard Shaw once noted, is profoundly conservative, in the psychological rather than the political sense of the term. The worker has not wanted revolution, but a place in society; and even when he has given vent to violence—for example, in the mining camps and timber forests-—its form and direction have been more characteristic of the blind resentments of the Jacquerie than of the ideological formulations of the intelligentsia. The search for security has been the chief drive of the industrial worker. What else could it be when the costs of social change—costs in terms of unemployment, short workweeks, the destruction of skills—have been borne largely by him. The Apprehension of Change The question has been posed whether the eco nomic environment today is changing more rapidly than before and, as a consequence, whether the pressure for security has increased. I find no way of answering this question. Even if a tech nique for measuring the rate of job displacement today could be devised, how could this measure ment be applied to the past in order to make comparisons? Whether or not the actual rate of change is greater than in the past is largely aca demic (in the true sense of the word), but what is relevant is that there does seem to be today an increased apprehension about change, an appre hension which is manifest in the thinking and behavior of the industrial working class and its leadership. * Professor of Sociology, Columbia University. i Second edition (New York, Harper & Brothers, 1947), pp. 81-86. s With Schumpeter’s penchant for irony, it is quite likely that his use of the phrase "creative destruction” was a deliberate play on Bakunin’s words. One can see him enjoying the idea of using Bakunin’s phase to describe and justify a system that Bakunin had sworn to destroy, and of having capitalists applaud and employ a defense of the system based on the words of an anarchist. THE WORKERS’ SEARCH FOR SECURITY This, too, seemingly is a paradox. Fifty years ago, the only security a worker had, outside the support he might receive from his extended family, was the small benefits that a trade union or a fraternal association might provide. Today, the organized worker has, on the job, protection against arbitrary dismissal, seniority on job assign ments and layoffs, call-in pay, supplementary unemployment benefits, health, welfare, and pen sion benefits, and in many instances severance pay or retraining benefits in the event of permanent layoff. In the society, the worker now expects that there will be jobs for him, and that legally (through the Employment Act of 1946) and politically (in order to obtain reelection), any gov ernment in office will seek to fulfill that expectation through some direct (public works) or indirect (fiscal policy) intervention in the economy. One might say, too, that the American worker has today a more realistic view of the job order in society. Fifty years ago, a significant proportion of the working class were immigrants, with little expectation of their own advancement but often with extravagant expectations about the advance ment of their children. Today, a largely nativeborn and more homogeneous working class seems to have lowered its sights: There is the realization that education is the chief ladder of social mobility and an accompanying awareness that without edu cation one will remain in the working class. Yet the apprehensions remain or even increase. Part of the explanation is socio-psychological. Half a century ago, people knew vaguely that the society was changing but had no means of under standing the direction of change or gaging the force of its effects. Today, we know so much more that one source of apprehension about change is the increased awareness of its dimensions and its linked effects on the various sectors of society. A second point is that society today is more highly organized and, as a consequence, individuals have more specific expectations of social action to meet today’s challenges. Further apprehension arises from the fear that these expectations will not be met. Third, there is the tangible evidence that the major force of technological change today is largely in the blue-collar sections of the economy and that the erosion of these jobs means a decline of union power as well, since they are most highly unionized. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 615 The knowledge which we now have concerning the direction and effect of change, although it can increase power, can also increase anxiety— particularly when companioned with the realiza tion that the mechanisms to cope with change are not at all adequate to the tasks at hand. For the individual worker, there is the knowledge that the new jobs developing in the economy may require a degree of education he has failed to acquire and, as a result, he may be permanently “beached.” For the union leader, there is the dawning understanding that collective bargaining, the chief means by which we have cushioned the impact of change hitherto, no longer may “work” in the present-day economy and that the ways of coping with change, since the market does not provide automatic offsets for job losses in the economy, are dependent on broader social policy. And the average union leader, despite his lip service to the idea of social planning, is often as parochial as the trade association executive in understanding the new forces at work today. Hence his own apprehensions. The Risks of Change The worker’s search for security in the United States, for reasons too well known to be restated here, has centered largely in the enterprise through collective bargaining, rather than in the State through political action. The early factory sys tem treated the worker as a commodity, paying him by the piece or by the hour, while the pre vailing ideology made it plain that if he became unemployed or had no savings upon which to retire in his old age, the fault was his, not the system’s. Step by step the worker, through the trade union, built up enclaves of security, forcing on the employer some of the burdens of the costs of change. This was done by limiting the supply of labor to a market and so forcing up the price; by imposing a standardized wage rate in a labor market or industy and so eliminating wages as a factor in competition between firms; by con trolling job assignments through rotation in hiring halls in casual employments or by seniority systems in fixed employments; by insisting on fixed work crews, as in the manning scales on ships or the number of stagehands in a theatre; by obtaining call-in pay guarantees and supple- 616 mentary income benefits; and so forth. As a result of all this, a modern collective bargaining contract has as many entails on a job as the old manorial three-field strip system had on the land. But collective bargaining, in the absence of a national wage policy, only works in an expanding economy or an expanding industry, where the costs which are added by the wage bargain can be absorbed by the rate of growth or where the costs are shifted to other, unorganized sectors of the economy. In the latter instance, collective bar gaining works usually because there is a bilateral monopoly, so to speak, wherein the industry or firm often gains as much as the union, as in the steel and auto industries, where the employers have been able to gain a “cost-plus fee” from the union contract by using wage bargains as the occasion to chalk up higher prices than were warranted by the union gains.3 The problem of the labor movement today is that collective bargaining, as a means of obtaining job security, no longer works so well. In the last 5 years, the economy’s growth rate has slowed considerably. One reason (and I do not seek to assess its centrality) is that productivity has risen much more than demand has in the manufacturing sector, thus reducing the number of jobs. The steel industry, for example, which already has an oversaturated capacity at a low break-even point, recently announced that it would spend a billion dollars in the near future for capital replacements which would further cut its costs. Thus, there is every prospect of a further shrinkage of jobs in the steel industry. Statistics show that the auto industry today can produce the same number of cars as it did a decade ago with perhaps 20 percent fewer production workers. Even at lowered prices, demand is probably relatively inelastic. The major point is that in this sector the increased productivity resulting from technological change is not being reallocated in a meaningful way. At the same time, in the service sector, costs have risen, while productivity has failed to keep pace, so that whatever possible employment offsets might have taken place have not been realized. (How many small firms, for example, want to hire messengers at $60 to $70 a week?) Thus, in a “shrinking” area of the economy, productivity is rising, and in an “expanding” area it fails to keep pace. In the coming years, it is likely that this “scissors” movement will accelerate. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 The traditional response of the unions has been to ask the firm to shoulder the costs of change, either by keeping a fixed number of workers in the industry, by increasing supplementary un employment benefits, by paying retraining costs, or by paying lump-sum discharge or severance benefits. But the magnitude of such costs is already far higher than those benefits previously negotiated. As the experience of Armour & Co. in the packinghouse industry showed, even when an employer seeks to assume some of the burdens of technological or market change, the costs may be too high for the firm, individually, to bear.4 Where such burdens can be distributed on an industrywide basis, as in the contract of the West Coast longshoremen with the Pacific Maritime Association, the problem may be handled through collective bargaining. In this case, the industry has been freed to introduce laborsaving devices and modernize work rules by creating a fund, which is used for (1) paying special retirement benefits and (2) guaranteeing payment for a specified number of straight-time hours a week to each longshoreman who was fully registered in 1960 when the agreement was signed.6 In this instance, the number of jobs in the port is not fixed, but the income of the individual is guar anteed, so long as he reports for work. As the labor force shrinks because of deaths, retirements, and dropouts, the demands on the fund are reduced until presumably the registered member ship and the number of jobs come into balance. This is a humane solution. But there is the question of how widely it can be applied. In both coal and railroads, the two industries with the highest percentage of re dundant or potentially redundant labor, such a scheme is unlikely to work. In coal, where John L. Lewis sought many years ago to protect older workers by “buying” a huge welfare and pension fund at the expense of jobs, the inability to completely control the industry has resulted in large numbers of wholly destitute miners. The ultimate costs have been borne by government through poor relief. 3 For an elaboration of my argument, see “The Subversion of Collective Bargaining,” Commentary, March 1960, pp. 185-197, and the comment by Arthur J. Goldberg and the reply in the July 1960 issue. 4 See “ Progress Report of Armour’s Tripartite Automation Committee,” Monthly Labor Review, August 1961, pp. 851-857. 8 See Max D. Kossoris, “ Working Rules in West Coast Longshoring,” Monthly Labor Review, January 1961, pp. 1-10. 617 THE WORKERS’ SEARCH FOR SECURITY Useful as it is in other areas (e.g., grievances), collective bargaining works only fitfully well as a way of sharing the burden of such costs. Given the increasing human cost factor of technological change and the increasingly linked nature of the economy, it seems unlikely that any of these automation problems can be met by other than comprehensive action at the National Govern ment lev^el. And the realization of this, which is slow in coming, inevitably must create extraor dinary changes not only in manpower policy but in the character of education and training, in patterns of investment, and in the structure of the labor movement. One of our problems has been that we have never had an adequate picture of the social costs of technical change. Our national accounting system provides us with a picture of the total value of goods and services produced during a year, but we have no precise measure of the rami fications of change. Our national ethos, going back to the prodigal wastefulness of the early republic, was that any technical change was inherently good; the economic mythos has been that technological change is ultimately costreducing and beneficial to the consumer. But can such equations be so easily made? How can the value of a price reduction for utility com panies and consumers in the substitution of natural gas and oil for coal be measured against the joblessness of thousands of miners and the wrecked communities in the coal mining area? When one hears talk of 40,000 obsolete jobs on the railroads, how does one measure the financial gain to the roads against the idleness of men who find that a skill of 30 years is no longer useful or against the increased hospitalization in mental institutions of men who find the routines of their lives cut from under them? To look at the prob lem of waste in a different perspective, is it a rational use of capital resources for firms to invest more in o v e rc ap a city industries when such resources might be better used for needed services? . To pose these questions is not to argue against technological change (or to advocate capital levies). It is simply to point up the problem that the pressing search for security which is becoming a feature of this decade poses social questions that we are ill-equipped to assess, let alone to handle in policy terms. The problem of all social policy is one of relative equities. The question involved here is that of distributing costs. All social change generates costs that are borne differentially throughout the society. The question is whether we can find a better system than the patchwork methods that we have used until now. All collectively provided services are deliberately designed to meet certain socially recognized ‘needs’; they are manifestations, first, of society’s will to survive as an organic whole and, secondly, of the expressed wish of all the people to assist the survival of some people. ‘Needs’ may therefore be thought of as ‘social’ and ‘individual’; as . . . mutually related essentials for the continued existence of the parts and the whole. . . . the shading of one into the other changes with time over the life of all societies; it changes with time over the cycle of needs of the individual and the family; and it depends on prevailing notions of what constitutes a ‘need’ and in what circumstances; and to what extent, if at all, such needs, when recognized, should be met in the interests of the individual and/or of society. — Richard Morris Titmuss, Essays on “The Welfare State” (New Haven, Yale University Press, 1959), pp. 112-113. 686133— 63- -2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Dynamic Nature of Workers’ Goals J oseph A . B e ir n e * I q u e s t i o n whether personal security in and of itself is a desirable goal. Certainly, trade union members and leaders risked the most serious kind of insecurity when they literally gambled life and limb to organize unions originally. Security, standing alone, is surely not an inspiring goal. The Communists stress “security,” and the price they exact for it is much too high for any selfrespecting person to pay. American trade unions have tried to combine fulfilling basic security needs with broader purposes. It has been amply demonstrated over the years that the American worker has relied upon his trade union to obtain through collective bargain ing and political action the security he needs. Further, there is a direct correlation between the strength and effectiveness of the trade unions and the relative security of the American worker. One of the current tragedies in the economic order is that in the midst of great achievements the trade union movement finds it beyond its powers to cope with the serious and prolonged unemploy ment of important segments of our labor force. This inability is directly attributable to the same factors which account for the lack of growth of union membership in recent years. Unions today do not have the same support from the broader communities that they used to have; yet the need for cooperative approaches in solving our problems is greater than ever before. Now, we see a situa tion where the relative influence of the labor move ment has not kept pace with the need for it. This was not always the case. During the early years of trade unionism, its spirit captured the imagination of member and nonmember alike 618 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and its goals reflected not only the aspirations of dues-paying members but an aroused Nation as well. It is not easy to convince young people and their short-memoried elders that just 25 years ago, the basic issue in dispute between labor and manage ment in the United States was the right of unions to exist. For a long time, it looked as if social, economic, and political democracy would not be extended to include industrial democracy. For tunately for all of us, we decided in favor of indus trial democracy. The early goals of trade unions—and this is still true today—reflected what was happening in the country at large. The emerging liberalism of the New Deal, such ex~ periments as the National Recovery Act, and other important State and national developments were significant elements contributing to the early de velopment of unions and their collective bargain ing programs. Similarly, what was happening in unions leavened the entire economy. After this initial struggle to establish the right to form a union, the American worker looked to his organization to secure his right to dignity in the work place. This involved a head-on challenge of management’s decisionmaking power as it affected wages, working conditions, and the important subjects of job tenure and movement between jobs. The relative ease with which unions combined basic essentials and higher pur poses is testimony to, first, the expanding nature of the American economy in the first half of this century and, then, the validity of industrial democracy. New Goals Once fundamentals were fulfilled, the worker looked for further frontiers to conquer. These were not difficult to find. Not only did he look inward to assess his own unfulfilled wants, but he could see around him, in management and in the (often, nonunion) work force surrounding management, examples of benefits which would help him to achieve a more meaningful life for himself and his family. He saw such things as pensions, pay for sickness absence time, company paid life insurance, and similar practices that maintained income, not only during the working life of a person but also in his obsolescent years. School teachers and similar salaried people also •President, Communications Workers of America. 619 THE DYNAMIC NATURE OF WORKERS’ GOALS had many advantages which the industrial worker needed. Holidays with pay, paid vacations, pen sions, etc., were obviously, from the examples around him, attainable goals—and they were desirable. While there is no doubt that in recent years and throughout our history, workers, through their trade unions, have initiated many innova tions and shown great creativity in the kind of bargaining goals established, many of the goals were borrowed or copied from other countries and from other groups in our society. Certainly, pensions, a guaranteed annual wage, and paidfor absence time, for example, were nothing new; they were merely things which the higher paid managerial and other groups of workers had already achieved. A very significant development in defining the goals of workers came with the realization that when certain benefits were provided on a group basis, inherent savings and administrative effi ciencies resulted which benefited the entire work group. This realization opened up the whole area of group life and health insurance, credit unions, and related group practices. Initially, in some instances, the employee paid for all or a part of the costs and premiums, with the employers merely providing the payroll deduction machinery and related administrative services. Later, through collective bargaining, the employer often paid the entire premium as indirect wages. Even here, if you could go to the core of the matter, management and salaried workers served as the models. While the specifics of the management group's fringe benefits were not always exactly the same as those which workers proposed, such things as bonuses, company provided automobiles, stock option plans, “sabbatical leaves,” the ex pense account, and related extras frequently outside of the impact of the income tax and designed to provide benefits other than those directly provided by the pay check, served the same ends as company paid-for health insurance, pension plans, life insurance, and other indirect benefits. Underlying all these goals was a basic commit ment by trade unionists to social justice, both 1 For a discussion of the varied goals and programs, see Joel Seidman, Jack London, Bernard Karsh, Daisy L. Tagliacozzo, The Worker Views His Union (Chicago, University of Chicago Press, 1958). 2E ditob’s N ote: Mr. Beime’s hook, New Horizons for American Labor (Washington Public Affairs Press, 1962), which discusses this point in greater detail, is reviewed on p. 718 of this issue. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for themselves and for others.1 When it was possible to catch their breath, to rest a bit after winning the basic bread and butter struggles, the workers, through their unions, were able to spend more time on political action, on social welfare matters, and on matters of international concern. This has been one of the proudest parts of Amer ican labor history and one of its least understood contributions. The Future New goals are also emerging from the demands of the world we now live in, just as the drive for union recognition, minimum wages, and safe and healthful work places arose from the very nature of society at that point in our history. Modern counterparts relate to such problems as mental health, urban development and redevelopment, free higher education for the youth and the adult, decent housing and intelligent planning for recreational facilities, and cheap, rapid transpor tation to get to them. Paramount, of course, is the whole problem of unemployment and this country’s inadequate rate of economic growth. The union member will look to his union to correct these situations through collective bargain ing, if possible, and through social, economic, and political action where collective bargaining is in adequate. In my view, the traditional trade union collective bargaining areas will not provide the great challenges of the future. The bold, imaginative bargaining which Secretary of Labor W. Willard Wirtz calls for, it seems to me, will be conducted in the broader areas of community action, education, international affairs, and similar fields. Further, it is through an imaginative approach toward these broader areas that we will attract to union membership the groups of workers not yet organized.2 Will this change be accomplished easily? Will the trade unions move into these areas as readily as they moved into past collective bargaining and other programs? Social change is not easy. If we are to develop a society in which rational be havior and dignity are basic social values, we have to keep working at it and no institution can be exempt from its responsibility in working toward those aims. Unions must and will rise to the needs of a changing society and the expectations of the kinds of people who always have their eyes on the horizon. The Response to Change E w an C l a g u e * E conomic progress and change are indivisible. In fact, change is the price of progress. New and better products and new and easier methods of producing goods and services have raised the in comes and standards of living of American workers and their families and thus made them economi cally more secure. At the same time, part of our growing economic resources have been needed to reduce new threats to their security arising from change. For, although change is a permanent feature of our economy, it does not repeat itself. So our response has differed from time to time, as the articles in this section demonstrate. Our society seems now to be in the fourth stage of developing measures to meet the changing risks to workers’ economic and social welfare. Until 30 years ago, in the first stage, we relied princi pally on private initiative and enterprise, the indi vidual worker’s savings, the sharing of income and resources within the family, union welfare funds, management pension plans, and private philanthropy. When the economy plunged into the great depression of the 1930’s, it soon became apparent that the protective devices which indi viduals and families had prior to that time were totally inadequate to the new situation, and the second stage began to emerge. New devices were created—nationwide unemployment insurance for laid-off workers, old-age insurance for those too old to work, public assistance for those who https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis couldn’t work, emergency work programs, ex pansion of regular public works, etc. A whole new set of governmental protective measures was established to supplement the limitations of the previous, private systems of protections. The third stage covers the period from 1940 to 1957, when the economy was expanding rap idly, at first under the forced draft of wartime needs and then under the pressure of postwar civilian shortages. Nearly 12 million men (and women) were inducted into the Armed Forces, leaving gaps in the labor market which brought into the Nation’s labor force millions of people who had never previously worked. The manning of the war industries required far-reaching geo graphic and industrial shifts of labor, but these movements were faciliated by patriotic motiva tions, high wages in the war industries (later sup plemented by such “new” benefits as vacations for factory workers) full employment, limited labor controls, and assured protection after the war. During most of the postwar period, jobs were plentiful, and the labor force responded rather easily to the job shifts required by large-scale geographic and industrial changes accompanied by technological displacement. Unemployment was fairly high at times, but the duration was short; most workers could find jobs before their unemployment benefits were exhausted. ‘Commissioner of Labor Statistics. THE RESPONSE TO CHANGE Labor market conditions in the postwar econ omy facilitated many forward steps in the work er’s quest for security. In circumstances favorable to collective bargaining, many workers, in addi tion to obtaining higher wages, were able to nego tiate substantial fringe benefits in the form of pensions, health and welfare plans, supplemental unemployment benefits, separation allowances, and other similar protections. In addition, man agement on its own initiative made provision for many of these benefits among white-collar employ ees. At the same time, legislative changes broad ened and strengthened our system of social insurance. Furthermore, substantial numbers of individuals and families from all walks of life made provision for their own medical care and hospitalization through private insurance plans. During the past 5 years, the pattern of indus trial change has shifted again. In speed and in degree, the new changes are certainly far less dramatic than those which occurred in wartime and in the postwar readjustment. However, they are having more effect upon people. Unemploy ment is higher and the sense of insecurity is stronger. Consequently, employers and workers, as well as the community itself, have had to take another look at the problems of individuals and families in a changing society. Why is the problem seemingly more serious today when the changes are less violent? One obvious reason is that economic growth has slowed down and job opportunities are less plentiful. That is why public attention is being centered upon ways and means of increasing the recent rate of economic growth. A second reason is that the technological and industrial changes of recent years have had a profound effect upon the job opportunities and the occupational outlook of certain groups in the labor force. The atomic revolution and its scientific aftermath have brought about a marked stiffening in the quality of labor requirements. Unskilled and repetitive jobs are being eliminated; highly technical and profes sional groups are increasing rapidly. The most pronounced changes of this kind have occurred in the goods producing industries. At the same https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 621 time, shifting demand in a high consumption economy has opened up new jobs in the lighter service industries. But many workers are occu pationally stranded. They could still hold jobs in their own lines of work but they cannot qualify for the new occupations. These recent developments have stimulated a search for new protective devices—the fourth stage of our response. Both managements and unions have been working out new experiments in providing security and protection to the workers and stability to the enterprise. Government too has embarked upon new programs. The articles in this section analyze different aspects of the defenses against insecurity. For example, it is quite clear that a quarter of a century of advances in social security have not yet brought that program to maturity. In fact, the increasing protection of the great majority of workers and their families contrasts more sharply now than formerly with the disadvantages and the poverty of the minority who at best have only minimal protection. Nor, ironically, has this minority come within the scope of the significant achievements in strengthening worker security through collective bargaining. Here, there is some evidence of innovation, but the innovations consist mainly of variations appropriate to the particular situation in contracts reflecting common union or management concepts of their respective obligations to employees. Management has in creasingly recognized the need to ease workers’ readjustments to technological improvements by setting aside some of the cost savings from in creased productivity for this purpose. Among the unions, the basic approach has been either to protect jobs or income or to distribute the re maining jobs equitably. There is also some new thinking concerning the security of the worker in relation to the union, not only with respect to its service to him in collective bargaining but also with respect to his individual rights vis-a-vis the organization itself. The analysts whose papers are presented here foresee significant challenges to government, labor, and management in the economic setting of the 1960’s. The present mixture of governmental and private measures to promote worker security and the strengths and limitations of public programs indi cate a need for revitalization of government’s role. Public Systems for Distributing Risks to Security P h il ip B ooth * E conomic upheavals , war, and society's read justments to postwar conditions have posed the most serious threats to workers’ security. Today, our highly productive forward-moving economy, with technological change moving at virtually ex plosive speeds, may be producing equally serious threats to workers’ security, while at the same time opening the door to greater achievement and satisfaction for society as a whole. In a sense, our successes bewilder us because of the many adjustments which are necessary to prevent the imbalances and waste accompanying the tech nological revolution from defeating our hopes of a more abundant life for all Americans. During the past half century, marked changes have occurred in the nature of the risks which endanger workers’ security. Many forces which formerly endangered continuity of employment and income, old-age security, and the health of the worker and his family have declined in im portance. Longer life expectancy, better living and working standards, a higher level of health and physical well-being, and greater capacity to enjoy social and cultural advances through edu cation and leisure have improved man’s lot in the last 50 years; at the same time, they have tended to raise his sights and add to his expectations. Our society requires that these needs and expecta tions be met by employment. Changes in the nature of threats to workers’ security have had major consequences for the role of government. This article discusses the mix of 622 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis governmental and private measures for worker security, the characteristics of existing systems of governmental protection, and their strengths and limitations. Finally, some observations are made as to the needs for reexamination and revitaliza tion of government’s role in view of today’s de mands for security. Until fairly recent times, the individual worker, employer, and voluntary community measures were relied upon for alleviation of the consequences of major contingencies. The exhaustion of private resources and those of voluntary organizations for dealing with the consequences of mass unemploy ment in the depression of the 193Q’s led to the assumption of responsibility by the government. For lack of financial resources, or because of ob stacles to tapping them, governmental responsi bilities for worker security have been more and more surrendered by local government to the States and by the States to the Nation. Government has not been as much concerned with the abolition of threats to worker security as with the more limited objectives of alleviation of their harsher and crueler consequences. But, at this point in our history, should we not be asking whether and in what areas preventive measures can be taken to lessen the threat of dependency and to meet the consequences of old age, illness, and unemployment in a more effective and constructive manner? Of the many forms that governmental action has assumed, only a few are dealt with in this ‘Lecturer In Social Work, University of Michigan. PUBLIC SYSTEMS FOR DISTRIBUTING RISKS TO SECURITY article. They are categorized in the following three ways: The encouragement of private action by governmental subsidy, primarily in the form of favorable tax treatment; the encouragement by the Federal Government of State and local government action through grants or other financial devices; and the services and programs provided or operated by government itself. The discussion thus cuts across specific risks to worker security and focuses on the nature and extent of the responsibility which government has undertaken. Encouragement of Private Action In keeping with the importance which private and individual responsibility and freedom have long enjoyed in our society, government has en couraged voluntary individual and group pro tection, primarily through fiscal devices. Certain types of favorable tax treatment by the Federal Government and the States, such as deduction from taxable earnings of the cost of health insur ance premiums and of contributions to nonprofit charitable and educational organizations are now taken for granted. Employer contributions for such purposes are treated as deductible business expense. What Titmuss has called “fiscal wel fare” 1 measures have subsidized the establish ment of pension and life insurance plans, sup plemental unemployment and workmen’s compensation benefits, health and welfare funds, hospitalization plans, and other such arrangements. Value of Favorable Tax Treatment. The variety and complexity of the plans and arrangements so favored, the problems of obtaining comparable data, and the complexity of the assumptions involved in estimating tax savings make it dif ficult to put a measuring tape around the entire body of such governmental support. To take only one limb, as it were, the favorable tax 1 See R. M. Titmuss, Essays on the Welfare State (New Haven, Yale Uni versity Press, 1959), p. 45. 2 See Daniel M. Holland, “ Some Characteristics of Private Pension Plans,” Tax Revision Compendium: Papers on Broadening the Tax Base, submitted to the House Committee on Ways and Means, 86th Cong., November 16, 1959, Vol. II, pp. 1324-1325. 2 John W. McConnell, “ Treatment of Pension Plans,” ibid., p. 1348. * See Jerome Pollack’s discussion of the complementary roles of public and voluntary insurance measures in “insurance and Government,” Insurance Series Vol. II, No. 5, University of Wisconsin, Bureau of Business Research, Madison, 1960, pp. 11-14. « For a discussion of public welfare expenditures, see Ida C. Merriam’s ^article, pp. 687-694 of this issue. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 623 treatment of employer contributions to private pension plans alone has been estimated as resulting in tax savings of over $1 billion a year.2 Accord ing to John W. McConnell, “The government . . . has waived its right to tax approximately $7 billion of the income of private business [in 1959] devoted to pension and retirement systems.” 3 The value of these arrangements in our entire structure of worker security protection is certainly considerable. Such older private arrangements as pensions, retirement, and life insurance, which have experienced their major growth in the past 20 years, now supplement the protection offered by governmental social insurance programs (pri marily Federal) originally created largely because of the absence or inadequacy of private individual and group measures. Recently, newer types of employer plans have supplemented State unem ployment insurance and workmen’s compensation systems, but they reach only a few million workers in our mass-production industries. These plans signify recognition by both management and labor of the inadequacy of benefits in basic govern mental programs. In such areas as hospital and medical care, also favored by State and Federal tax provisions, private measures protect millions of wage and salary workers; here, governmental insurance programs are largely undeveloped.4 Supervision of Tax Subsidized Programs. The private group programs created since World War II have grown so rapidly in coverage and in finan cial resources as to outstrip the capacity of existing governmental supervisory measures to deal with them. Only recently have legal standards and regulations been instituted to assure that funds accumulated from worker and employer contribu tions in welfare and pension plans are conserved for the benefit of the workers for whom they were established and not wasted or diverted for the personal gain of those responsible for their management. Encouragement of State and Local Action Public Welfare Payments and Services. A second major form of governmental action for worker security has been Federal financial encouragement of State and local measures, the most significant of which are Federal grants-in-aid of State public welfare programs 5 and Federal tax credit support 624 of State unemployment insurance. The needy aged, dependent children, the blind, the long-term totally disabled, and more recently, the medically indigent aged have been the major beneficiaries. At the end of 1962, 6.6 million needy individuals were receiving payments of $4.3 billion a year. Some 800,000 additional recipients of direct relief under State programs with no Federal aid were receiving $420 million a year. The Federal Government’s share of welfare pay ments amounted to 54 cents of each dollar in 1962, a share which has been increasing year by year (44 cents in 1950) for programs which were regarded as entirely local and State responsibilities only 30 years ago. Studies and evaluations of the programs tend to agree that assistance payments are frequently and seriously inadequate in amount, that few welfare, medical, and health services are supplied, because of financial ceilings on spending for such purposes, and that existing interstate variations in financial support and health and welfare services are out of keeping with the financial responsibility carried by all of the Nation’s taxpayers through the substantial Federal sharing of costs. The Advisory Committee on Public Assistance appointed by former Secretary of Health, Educa tion, and Welfare Arthur S. Flemming found: . . . less than one-half the States fully meet need [as defined] by their own standards, that assumed resources [of the families of assistance recipients] may actually be nonexistent; and that the amount of unmet need in the old-age assistance and aid to dependent children programs varies from $ } i billion to about $1 billion.8 On health and medical care, the Committee found that: . . . the sums expended . . . are pitifully insufficient. Low income and poor health work in a vicious circle; malnutri tion, untreated physical handicaps, debilitating chronic conditions . . . do not make for vigorous self-supporting people.7 The lack of public social services means that disadvantaged groups on our assistance rolls remain handicapped in attaining independence and self-support. Although more positive Fed eral standards and greater financial support are available, remedial and rehabilitative services to broken families, the aged, and infirm thus far lack the local and State financial participation and support to make them fully effective. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 Employment Security. State unemployment insur ance programs were brought into being by a Federal payroll tax on employers, against which they credit their contributions under State unem ployment insurance laws. The programs protect 47 million workers in 50 States and the District of Columbia, but some 14 million workers are still unprotected because they work in small-size firms, for State and local governments, or in other excluded industries or occupations. The combina tion of these exclusions, plus limitations on duration of benefits and the effect of eligibility requirements on new entrants, low earners, and workers who move back and forth from covered to noncovered employment results in some 40 to 65 of any 100 unemployed workers not receiving benefits in any given month.8 (See chart.) In 2 of the past 5 years, more than $4 billion was paid in benefits to more than 7 million jobless workers (nearly 8 million in 1958); over $3 billion was paid in 1962. It is estimated that such benefits com pensate for about 20 percent of wage loss caused by unemployment.9 While the contribution of unemployment in surance to economic stability and family security is unquestioned, the gaps in coverage and limita tions on benefit amount and duration have re duced its effectiveness in achieving the goals for which it was designed. For example, in 1958 and again in 1961, emergency ad hoc Federal programs were rushed in to provide continuing income for more than 2K million unemployed workers who had exhausted their benefits. Fur thermore, only a handful of State laws pay bene fits equal to as much as half the average weekly wage in the State. In a half-dozen States, in 1962, no worker was eligible for more than 20-24 weeks of protection, regardless of how long it took to find another job, or to be recalled to his former job. Under some laws, persons with only marginal attachment to the labor force are eligible for benefits, but for only 2 to 3 months and at low weekly amounts. More adequate duration of benefit protection will necessarily be accompanied 6 Report of Advisory Committee on Public Assistance, 1960, p. 14. 7 Ibid., p. 17. 8 Philip Booth, “ Unemployment Insurance and the Challenge of the 1960’s,” Proceedings of the 1 4 th Annual Meeting of the Industrial Relations Research Association, New York City, December 28-29, 1961 (Madison, The Association, University of Wisconsin, 1962), p. 168. • R. A. Lester, The Economics of Unemployment Compensation, (Princeton, N.J., Princeton University, Industrial Relations Section, 1962). PUBLIO SYSTEMS FOR DISTRIBUTING RISKS TO SECURITY by tightening of unjustifiably loose qualifying requirements. The interstate competition which the Social Security Act was designed to eliminate has per sisted in the pernicious form of competition for low tax and benefit rates. In States with the highest unemployment incidence in recent years, including Illinois and Michigan for example, benefit levels fall further and further behind wages, despite higher tax rates. In terms of employer payroll costs, the unemployment insurance system is rather inexpensive compared with other worker security systems, but the resulting protection is weakest for the better paid workers. For this reason, private supplementary systems have developed, but these protect less than 2 million workers,10 mostly those in the most favorable bargaining positions. Clearly, individual State action is not meeting the need for worker security during unemployment. The inability of the system to cope with the extended and extensive un employment in depressed areas is accentuated by the difficulty in finding work experienced by those who have used up even the additional supple mentary 9 to 13 weeks of benefits provided in some States to take care of local, as distinguished from nationwide, recession conditions. The national system of State employment services are financed entirely by Federal grants (as is unemployment insurance administration), a virtually unique Federal-State arrangement. In their basic function of bringing jobseekers and vacant jobs together, they perform a preventive and constructive role in worker security; insofar as they can shorten periods of unemployment by more effective planning and operation (since creation of employment is beyond their capacity), they make ameliorative measures less necessary. But the most rapid placement hinders rather than aids worker security unless it contributes to the most effective use of manpower resources. The recent concentration on guidance and training of the long-term jobless (whether the totally un skilled or those with obsolete skills) reflects fuller appreciation of the need for positive action to protect worker security. Perhaps the most fruitful future role of the employment services is in this area, as effective planning for future labor market changes becomes even more urgent. 10 Alfred M. Skolnik, “ Growth of Employee Benefit Plans, 1954-1961," Social Security Bulletin, April 1963, table 1, p. 5. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 625 Extent of Unemployment Insurance Protection, Week Including the 12th of October 1962 Programs Directly Operated by Government All levels of government directly operate programs designed to protect workers against insecurity. While foremost among these are the Federal old-age, survivors, and disability insurance (OASDI) and railroad retirement systems, they also include State programs of workmen’s compen sation, direct relief, and compensation for wage loss arising from nonwork-connected temporary disability. (The Federal-State public assistance and employment security systems have already been discussed.) In addition, all levels of govern ment provide free medical care for the indigent and for victims of tuberculosis and mental illness, and the Federal Government operates special programs for Indians, veterans, and seamen, to cite only a few examples. OASDI. The old-age, survivors, and disability insurance program, established in 1935, today provides protection for virtually the entire popula tion. Its all-embracing character has been described as coming “ closer than any other statute to being, in a vivid, demonstrable way, everybody’s law. . . . almost as universally recognized a right as the right to vote. . . . [There is no other] law in which so many persons have a 626 positive, personal interest.” 11 While statistics alone cannot adequately describe its role, one can readily appreciate the significance of 18 million individuals receiving monthly benefits at the close of 1962, with the number growing so rapidly that it had exceeded 17 million only 8 months earlier. Of the total, nearly 17 million were getting old-age and survivor benefits and another million, the newer disability benefits. In 1962, beneficiaries were paid $14.5 billion—one-sixth of the entire amount of benefits paid since the program began in 1940. Government as Employer. Government, in its capacity as employer of 9 million workers, provides uneven protection to its workers against the threats to worker security. It probably does a better job than private industry with respect to the completeness of its pension benefits; however, involuntary unemployment, sickness, work injury, and survivor protection for local and State employees is either spotty or largely unprovided for. The advent and spread of local and State government workers’ coverage under OASDI in the past decade has largely revolutionized their formerly grossly inadequate protection even for retirement. Workmen’s Compensation. The State workmen’s compensation system constitutes our oldest social insurance program for meeting the threats to worker security arising from work-connected injury and disease. Before workmen’s compen sation laws, loss of income resulting from work injuries could be recovered only through suing the employer under the common law. Neither the common law nor the early workmen’s compensa tion legislation provided on any large scale for medical services to restore the worker’s health and ability to work. Vocational rehabilitation for the victims of work injuries developed later. Today, 80 percent of all wage and salary workers are protected against the risk of work inj ury, although the extent of coverage varies from State to State— from less than 65 to over 85 percent.12 Injured workers and their survivors received $1.4 billion under Federal and State workmen’s compensation laws in 1961, about two-thirds for wage-loss compensation and the remaining one-third for medical and hospitalization costs. These benefits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 amounted to about 63 percent of all insurance premiums paid.13 Legislation requires employers to insure their liability against this risk or, under certain condi tions, permits them to self-insure. In this respect, government plays the part of regulator and standard setter, rather than insurer, as in OASDI and unemployment insurance. State funds, opera ting as sole or as competitive carriers in 15 States and those workers who are insured under Federal law, accounted for only 25 percent of all benefits paid in 1961, private carriers and self-insurers for 75 percent.14 Nonwork-Connected Disability. Government plays a far smaller role in the area of wage loss caused by disabilities unconnected with work, although these pose a much greater threat to worker security. The best available estimates indicate that of all work time lost because of illness or injury, about one-tenth is work connected. Of the $7.5 billion in wages lost by short-term sick ness in 1961, the largest part—$6.3 billion—was incurred by workers in private employment. The $2.1 billion paid as compensation in 1961 repre sented about 28 percent of each dollar of lost wages. Paid sick leave, typically a white-collar workers’ benefit, accounted for slightly more than half of this amount ($1.3 billion) and insurance the remainder. Five governmental programs insure 12 million workers against such wage loss—four State pro grams15 and the railroad system. Workers so protected experienced about 28 percent of the total wage loss because of sickness in 1961, but they were compensated for about 26 percent of their loss; by contrast, privately employed workers not so protected were compensated for 17 percent. Government employees were protected for over two-thirds of their time lost because of disability. Except for these 12 million workers, protection against income loss caused by disabilities lasting 11 Elizabeth and Karl de Schweinitz, Interviewing in Social Security, (U.S • Department of Health, Education, and Welfare, Bureau of Old-Age and Survivors Insurance, 1961). 12 Alfred M. Skolnik, “ New Benchmarks in Workmen’s Compensation,” Social Security Bulletin, June 1962, p. 5. is Alfred M. Skolnik and Julius W. Hobson, “ Workmen’s Compensation Payments and Costs, 1961,” Social Security Bulletin, January 1963, pp. 27-28, 37-41. i< Ibid. is California, New Jersey, New York, and Rhode Island. PUBLIC SYSTEMS FOR DISTRIBUTING RISKS TO SECURITY less than 6 months is nonexistent under govern mental programs, except for public assistance for the needy. Nor do the disability provisions of OASDI protect workers during the first 6 months of a long and indefinite period of disability, and even after the first 6 months, over one-third of all claims are disallowed under the rigid legal require ments.16 While these governmental disability insurance programs do attempt to protect the worker against wage loss, perhaps the most significant fact is that, except for workmen’s compensation, they leave virtually untouched the need for protection against the cost of medical and hospital services which could restore his health and capacity for work. The minor exception of the California dis ability insurance system, which provides hospital benefits up to $12 for 20 days, only accentuates the lack of worker security provisions in this area. Here government has left the worker and his employer to provide protection against this major risk through savings or insurance; for those millions who have inadequate or no protection, public assistance for the indigent remains the governmental residual measure. Medical and health services for the worker’s dependents are largely lacking. The older worker and the very young, the intermittently employed, and those in agriculture and other seasonal oc cupations, even when they themselves are so protected, are least likely to have such protection for their dependents. Education and Training. We are becoming more painfully aware of the trend toward more serious unemployment and underemployment of those with lesser skills, education, and training. The effect has not been as visible in smaller localities because of the larger numbers of underemployed in big cities, where they have gone hoping to find better jobs and a better chance to share in the richer life that our economy has made possible. Especially hard hit by this trend are the young people, particularly nonwhite youths in big cities, who are unable to get their feet on the first rung of the ladder leading to skills and experience needed in today’s labor market. isThe requirements demandproofofinabilitytoengageinany gainful work because of a medically determinable physical or mental impairment that can be expected to continue for a long and indefinite period or to result in death. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 627 As jobs which can use the unskilled, uneducated, and inexperienced have declined, and as semi skilled, clerical, and skilled jobs are being washed away by the machine, fewer job opportunities are left for the great mass of the unprepared. With enactment of the Area Redevelopment Act (ARA) in early 1961, government assumed responsibility within the spirit of the Employment Act of 1946 to help these displaced men and women. In some cases, those States and communities which most needed the stimulus of restored economic activity were least able or willing to take the steps neces sary to bring it about. Despite spotty and dis parate action by individual States and communi ties, especially in the Middle South and Southeast, to recruit industry from other parts of the country, such efforts had not been feasible, for example, in areas with worked-out and high-cost coal seams and abandoned textile plants. The Manpower Development and Training Act in early 1962 carried more ample financial resources and a broader responsibility. Under the Area Redevelopment Act, training is author ized for workers in areas designated by the Secretary of Commerce as “redevelopment areas” ; the new law goes further by making funds available for training in any area where its need can be demonstrated, while under the even more recent Trade Expansion Act, training assistance becomes available only where the loss of work was due to the adverse effect of trade policy. Under the first two programs, over 45,000 men and women would be trained under projects approved as of February 1963; on the surface, a bare start. By now, more programs have started and some workers have been placed in jobs which otherwise would not have been open to them. This number is expected to increase in the next 2 years. A significant though small step taken during the last days of the 87th Congress, the Trade Expansion Act, provides more effectively for the training and readjustment of workers displaced by foreign trade competition. For the first time, retraining allowances could continue as long as 52 weeks (65 weeks for workers past 60), and provision was made for paying transportation costs to a training center and moving costs to a new job. Such provisions, hitherto absent in governmental retraining programs, have been made available, oddly enough, under a program 628 which may pay allowances to not more than a few thousand workers able to qualify.17 This more realistic bundle of devices to facilitate training and mobility should be utilized in programs applying to larger numbers of workers. Public Works. With the recent accelerated public works program, the Federal Government has adopted another preventive measure focused on warding off, through direct provision and stimula tion of employment, the threats of unemployment to worker security. Through such grants to State and to local governments, more effective and, in the long run, more constructive steps can be taken to bolster worker security. State action directly aimed at gaining a higher level of economic activity has been less apparent, although as urgently needed. Minimum Wage. Threats to worker security also arise from substandard wages. When wages are so low that the fully employed worker cannot provide for his family’s needs, he is even less able to provide for such contingencies as illness, unem ployment, and old age.18 In this area, the role of government has been to prevent threats to worker insecurity; Federal, State, and local minimum wage laws have reduced the area of substandard wages during the past two decades. However, workers in many trade and service occupations and those in agriculture are not covered by this legis lation. Furthermore, these are the workers who are least protected by other governmental worker security measures.19 Reexamination of the Role of Government Since the governmental activities discussed here are largely ameliorative in character, rather than aimed at abolition of basic risks to worker security, the role of government in working toward economic growth and a healthy economy, in promoting edu cation, health, and private and public welfare is not central to our theme. In our narrower context, we find a variety of devices utilized to assure that for most of us, the major risks of worker security are shared with the individual worker and his family by the indus try, the locality, State, or the entire Nation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 Some risks are carried primarily through volun tary measures, others by the members of contribu tory public insurance systems, and still others by the general taxpayers; in some situations, the mix is heavily voluntary, in others, primarily public. The insufficiency of existing arrangements shows up most sharply with respect to the ill, the aged, the poorly educated, and those of darker skin. The following areas in which government must play a more vigorous positive role includes only a few of those which appear to me to be most in greatest need of attention: Income Support and Welfare. The public assist ance programs, though basic to our worker security system, should be brought into tune with the nature of our mobile population, and ideals of human worth. The road to support of the victims of old age, illness, and unemployment lies in the broadening of social insurance programs, and reducing the role of programs based on a test of demonstrated family need. Within these programs, we should give effect to the recommendations of many competent study groups for more adequate financial aid, reduction of State residence requirements, and provision of more rehabilitative services. In reducing our reliance on programs based on a test of needs, the extension of workmen’s com pensation and unemployment insurance to the workers who are presently not covered would con stitute major progress. More adequate benefits for longer duration and reexamination of eligibility requirements are both overdue. Medical care and rehabilitation provisions for workmen’s compensation need to be overhauled and strengthened. If this cannot be done under 17 As of M ay 1963, no workers had qualified for readjustment assistance. 18 Substandard wages as related to a need for public assistance are illustrated by the finding of the New York City Welfare Department in 1962 that it was paying $10 million a year to nearly 7,000 families whose breadwinners were working full time—but with such low earnings as to fall below minimum welfare standards for family support. Other studies had shown such situa tions were twice as frequent in nonwhite families as in white families. See Public Welfare: Myth vs. Fact (New York, Citizens Committee for Children of New York, 1963), pp. 8-9. » For a discussion of the lack or inadequacy of protection against old age, sickness, and unemployment, with variations in the extent of help from public assistance, see James N. Morgan and others, Income and Welfare in the United States (New York, McGraw-Hill Book Co , Inc, 1962), Ch. 16, especially pp. 216-217. PUBLIC SYSTEMS FOR DISTRIBUTING RISKS TO SECURITY present arrangements whereby most insurance is carried by private carriers, more effective govern ment underwriting of insurance may be needed. More public participation is necessary to pro vide insurance against wage loss arising from dis abilities which are not job-related. Since the existing mix of private and public measures com pensates for nearly 30 percent of wage loss, but has remained constant for some years, a new ap proach to public participation is called for to bring this essential protection to all wage and salary workers. Medical care for the aged remains one of our greatest unmet needs. Current proposals for bringing hospital care for the aged under the social security system provide one answer, and an appropriate one, to this problem. While more adequate protection would be desirable than that contained in the President’s proposal of February 1963, it would certainly constitute a good start. Coordination oj Existing Programs. Many worker security programs need coordination. Duplica tion of protection, side by side with unmet needs, is found, for example, when victims of fatal acci dents in industry leave survivors protected by several public as well as private programs—death benefits under workmen’s compensation, survivor benefits under old-age and survivor’s insurance, plus employer life insurance. Employment Opportunities and Training. Gov ernmental and private industry collaboration is needed to extend work opportunities. The de vices for providing compensation, training, and retraining for the jobless are vital but only partial solutions. Continued support of workers and their families by unemployment insurance or public assistance for longer and longer periods does not provide an adequate answer. Employ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 629 ment is the answer which society and the economy require, whatever the combination of fiscal policies and direct government provision of employment opportunities which may be necessary. For youth, employment programs directly sup ported by the Federal Government are necessary. For the older jobless, action at the community level, with the assistance of State, Federal, and pri vate funds, is needed. The waste of potential talent and skill involved in the continued unemployment of so many Americans is a luxury we can afford no more than the loss of the goods and services which their work could produce. Our most shame ful waste of manpower resources lies in the em ployment and training discrimination practiced against Negroes and other nonwhite members of our population. More determined and widereaching action to provide greater work opportun ity will remove a great threat to worker security; that the answer to this problem is tied to edu cation and training is self-evident. Education, reeducation, and training programs need broadening and more financial support. At the same time, we must not place undue reliance upon glowing promises of local redevelopment, or expect easy solutions to basic employment malad justments through the beginning governmental retraining efforts thus far put into play. It is already painfully obvious that too many of our jobless will remain so because they do not have the educational base upon which training for today’s jobs must be founded. But for the long pull, government must rely upon industry and labor to open the door to em ployment and training, without which worker security cannot be solidly built. Here too, private and public efforts must be mutually supportive if we are to be successful in planning today to reduce rather than increase threats to worker security in tomorrow’s world. Complex changes have combined to lengthen management’s planning horizon and to require the inclusion of worker security among the basic premises of innovation. Management’s Adjustment to Change E dward L. Cushman* T he h a l l m a r k of a competitive economy is change. Resources are allocated to competing uses in response to factors such as changing consumer demand and technology. The essence of the managerial function is adjusting to this change; or, put another way, management’s task is to “manage” change. In a competitive econ omy, management is simultaneously initiating change and reacting to change initiated elsewhere. In either case, some degree of change is imposed on the organization. The Sources of Change The sources of change affecting management are many and varied. One which management lives with every day is technology, and it is one aspect of change which is generated in large part by management itself. This is not to imply that technological change is completely within the control of management. In this context, each management is vying with all others for success in the market place. Competition has spurred a never-ending search for new markets, new products, new processes and techniques. The history of our economy is replete with examples of the changing positions of various industries and, within those industries, of the rise and fall of individual companies. The development of electronics is a recent example of the birth of an entirely new industry with new companies. Other examples of change that come to mind are the dieselization of the railroads, substitution of oil and gas for coal, and development of new synthetic materials. Thus, for the individual management, there are strong competitive pressures for the utilization of the latest technology in the manufacture and 630 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis distribution of its products; pressures increased by the possibility that new products developed elsewhere will prove substitutable in the consum er’s mind for existing products. In recent years, business expenditures for re search and development have risen substantially and projections indicate that this trend will continue. One set of national figures indicates that business research and development expendi tures have increased from $840 million to $10.9 billion since the end of World War II, and should increase at the rate of nearly $750 million a year for the rest of the 1960’s. In a sense, these expenditures represent management’s investment in change, for the expectation is that new tech nological progress will result from them. Obviously, not all change affecting business is management-generated, nor is it solely technolog ical in nature. The entire economic, social, and political environment of business produces changes which influence the behavior and pattern of management. In fact, the increasing complexity of our economy has led to increased efforts by man agement to identify and anticipate the effects of changes in the economic, social, and political environments upon the enterprise. In recent years, a long-range planning function has devel oped within management, representing an attempt to identify trends in the total business environ ment and to prepare for anticipated changes as far in advance as possible. The competitive edge will go to the company that is best prepared to meet forthcoming change. The longer the planning period, however, the broader must be management’s perspective in terms of factors involved. Product planning in the automobile industry, to use one illustration, *Vice President, American Motors Corp. 631 MANAGEMENT’S ADJUSTMENT TO CHANGE requires a constant evaluation of potential de velopments in technology. Research in new materials, new sources of energy, and new processes of manufacturing is of interest. Be yond these, however, patterns of car usage, high way construction, urban renewal, and suburban living are related to the size of the automobile market and to the nature of the product. An evaluation of these factors, in turn, involves an assessment of some of the basic forces in the econ omy, e.g., rate of economic growth, taxation and government spending, and family formation and income. The productivity of our economy, which is the source of our rising standard of living, is the result of many factors, among which technology is obviously important. But, the entire business environment has an impact on productivity— the size and structure of the labor force, the type and amount of taxation, the size and nature of foreign trade, monetary and fiscal policy, all of these have an influence on our productivity. Over the years, emphasis has shifted as the major problems of our economy have varied. The transition of our society from agricultural to industrial predominance brought with it a need for new policies and techniques on the part of business as well as the entire community in meet ing the human problems of adjustment. In the depressed years of the 1930’s, the prob lems of international competition were relatively minor. Today, they are of major importance to our economy. The changing political and social environment embodied in the social legislation of the 1930’s brought a realization to management that the American people expected business to do a better job of meeting the needs of its employees. The dramatic mobilization of our resources during World War II has been replaced by the necessity of girding ourselves for the long pull of the cold war. Thus, the changing environment of business produces changes in management—changes in its structure and in its objectives and policies. The growth of unions, supported by law, largely brought an end to the unilateral deter mination of policies affecting employees. This, in turn, brought changes in those policies as unions articulated unmet employee needs. The growth of collective bargaining brought a major change in management attitudes, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis techniques, and objectives in employee relations. The most obvious and immediate effect was the limitation upon management’s right to act uni laterally on employee problems. With broad public support, unions moved aggressively to express employee needs and aspirations. Thus, the expectations of the American people have had an influence on management’s objectives and practices. Only as business and other insti tutions demonstrate their ability to meet the needs of people can they continue to merit public support. Changes in Management Practices These changing environmental conditions have brought about adjustments in management’s policies and practices and also have brought about adjustments in the structure of management itself. The management organization has devel oped more areas of specialization, paralleling the increasing complexity of business. Expert knowl edge has been brought to bear on each subject through the use of persons with special insight into a particular field. The personnel function has epitomized this development. From the relatively simple hiring task of the foreman or the employment clerk, the personnel function has emerged in the large company as a multifaceted operation combining the capabilities of many specialists. Generally, the personnel staff is supervised by an officer of the company who participates in the formulation of policy decisions. He is supported by specialists in pensions, insurance, training, salary and wage administration, union relations, and other par ticularized areas of knowledge. Policies which recognize the needs of the individual employee now are developed after toplevel management discussion. The personnel officer is charged with the responsibility of determining employee needs and developing poli cies to meet these needs, within the limits of management’s reasonable responsibility to its employees. In our economy, each company must meet the test of competition, providing its customers with product values at least as good as those of com petitors, and meeting its competitors in terms of employee compensation and return to stockholders. These are the basic tests of management’s ability 632 to adapt to change. Within these limitations, there is constant need for open-minded review of personnel policies in the light of employee needs. Although the personnel function affects a wide area of the company’s operations, it has probably not yet reached its full potential. As we gain additional insight into the motivational factors of human behavior, the personnel function will be modified accordingly. Worker Security As a result of the changes in the socio-political environment of business—as reflected in manage ment’s own self-enlightenment and the salutary influence of a zealous union movement—much has been done to meet the employment security needs of workers. Within the private sector of the economy there now exists a widespread system of private security plans. These have, as part of their objectives, the maintenance of employee income in periods of illness, unemployment, and retirement. Many companies had retirement plans and welfare pro grams before the development of comparable public programs during the 1930’s. By and large, however, the current private plans have been built on the foundations of public programs, such as social security and unemployment insurance. In recent years, the emphasis has shifted again to private plans. This reflects, in part, an effort to meet diverse employee interests and needs in varying industrial settings. Currently, nearly $10 billion annually is contributed by industry for such private programs, compared with the total national employer contribution of just over $10 billion annually to public programs—old-age, sur vivors, and disability insurance, unemployment compensation, and workmen’s compensation.1 As the purposes of the plans have shifted, so, too, have the methods of funding. A wide variety of arrangements has been developed, tailored to the economics of the particular industry or company. For example, there are welfare plans funded on the basis of man-hours worked, units of output, and, in some cases, profits. There are industry wide plans in industries such as trucking, clothing, construction, and shipping, where a large body of employees tends to “ float” from company to com pany or job to job, and the employee-employer relationship is tenuous. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, .TUNE 1963 In 1955, the automobile industry pioneered in the development of supplemental unemployment benefit plans (SUB), financed on the basis of hours worked. These plans are intended to supplement State payments during periods of unemployment. They now include among their benefits payments for short workweeks and for permanent separation from employment. Other programs described in the following article, including funds related to cushioning the effects of technological displacement, point up the diversity in financing, objectives, and techniques involved. The last few years have seen a renewed interest in an old idea, profit-sharing, as a means of financing employee benefit programs, particularly pension plans. Profit-sharing flourished during the 1920’s, but the depression of the thirties left few profits to share. Since World War II, as employee benefit programs have spread rapidly, profit-sharing plans have multiplied many times over. More than 30,000 qualified retirement plans covering 5 million employees are now financed, at least in part, through profit-sharing. At American Motors, there was agreement between the company and the unions that repre sent its employees that the philosophy of profitsharing could provide mutual advantages to em ployees and the company. Management also felt that the financing of benefit improvements as a variable cost would provide a sound basis for more adequately meeting employee job security needs. American Motors’ 1961 agreements with the United Auto Workers and other unions provide specifically for amounts generated by the American Motors-Union Progress Sharing Plan to be used for insurance and pension improvements, for reserves for these programs, finally, for SUB financing and such other uses as the parties agree upon. New Problems. The wide range of sound person nel programs has been aimed, in large part, at giving employees a sense of security as well as tangible and economic benefits. The widespread recognition of seniority or length of service as an important factor in job retention and promotion is an example. 1 National Industrial Conference Board, “Employer Payments for E m ployee Security,” Road Maps of Industry, No. 1410, Jan. 4, 1963. 633 MANAGEMENT’S ADJUSTMENT TO CHANGE Emphasis has shifted with the passage of time to different aspects of worker security. Initially, employers and unions were concerned more with the problems of illness and retirement. More recently, the emphasis has been on the effects of technological change, for which a variety of tech niques has been developed to accommodate the interests of management and employees. As is pointed out in the next article in this volume, these policies have varied from industry to indus try. At one end of the spectrum are the devices which tend to freeze the number of jobs required— a limitation on management’s right to make man power adjustments. The railroads are an example of this type of accommodation. At the other end are the mass production industries, where the accommodation of interests has taken less the form of job control and more the form of income security plans for displaced employees. In an environment of less than adequate economic growth, employee displacement be comes much more acute. With a good rate of economic growth, the impact of technology may not result in job displacement in a particular industry or company. As aggregate demand grows, the volume of employment will grow, too. The job problems of the displaced employee, or the new worker, are minimized in an economy where there are adequate job opportunities. The concept of changing job needs in the in dustry, or the company, becomes more accept able to the employee and his union. The basic problem then is to develop those policies which will promote economic growth. After all, the best way of meeting employee security needs is to provide the employee with a job in a competitive company in a healthy, growing industry. The outer limitations upon management’s ability to provide job security are established by competition. The uneconomic use of resources cannot be continued indefinitely and in the long run negates the objectives of employee security. Given an adequate rate of economic growth, our problem then is to find a blend of public and private policies which will permit the labor market to function effectively, using those manpower policies and techniques which facilitate change rather than stand in the way of it. This means that in the labor-management area, we must https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis reexamine many of the things we have been doing, many of the attitudes and beliefs we now hold and many of our institutional relationships. Certainly, a central problem in employee relations—including management-union rela tions-—is the development of programs to meet the security needs of employees stemming from the fear of unemployment. In the private sector of the economy, management is the primary locus of the decisionmaking authority. The prime responsibility for coping with change rests with management. The pressures generated by a changing environ ment, however, do not always work in the same direction. For example, the Employment Act of 1946 established as objectives of public policy the achievement of full employment, maintenance of stable prices, and rapid economic growth, all within a framework of free private enterprise. Periodically, doubts are expressed as to the com patibility of these three goals. Can we achieve all three simultaneously, or, at any given moment, must one goal take precedence over the other two? Currently, we are most concerned with two of these objectives: reducing the rate of unemploy ment and increasing the rate of economic growth of the economy. In the short run, these goals may seem to be contradictory in nature. Achiev ing more rapid economic growth implies putting economic resources to their most efficient uses. One of these resources is manpower. Thus, we come to the major issue in many of the recent labor-management disputes—the manpower re quired to perform available work. Union-Management Relations The widespread public criticism of the collective bargaining process as it exists today, focuses on the need for noninflationary settlements and for noncrisis bargaining. The pressure for com pulsory arbitration or outside intervention in major disputes is mounting. At the same time, the central issue in these disputes—job security— is one of the most difficult to resolve. Both labor and management are in danger of having their bargaining freedom further limited unless their actions meet the expectations of our society. It is incumbent upon labor and management to now reexamine their relationships in view of 634 their mutual self-interests in preserving their freedoms. Management accepted unions grudgingly in the beginning; conversely, unions, growing rapidly in an atmosphere of militancy, by and large, were not sympathetic to management problems. The accommodation between the parties in this setting was based fundamentally on power. The attitude of the leadership of both institutions tended to be one of competition, lack of understanding of the role of the other institution, and lack of clearly enunciated and known objectives. There were, therefore, inadequacies in techniques for furthering cooperative programs. Many union-management relations have not progressed beyond this point. Others fall into what may be called an armed truce relationship in which the union and the company have learned to work together to some degree but continue to place their reliance upon power. It has also been called, from a management point of view, a period of containment. The corporation tries to prevent the union from expanding the areas in which the union has made inroads on managerial freedom. Broadly speaking, this summarizes the present state of the “art” of collective bargaining. That it has progressed no further probably is to be expected, considering the relatively short period of time labor and management have had to arrive at mutual accommodation. During this period, too, there were times when both sides were restricted in their freedom because of govern mental controls. During the past 30 years, there has been a subtle change in the roles played by both manage ment and the unions. Unions, which had their greatest growth during the depression years and World War II, made a great contribution during those periods, primarily because management had failed to exercise the high degree of freedom it had enjoyed up to that time to deal adequately with the human problems of industry. Since the 1930’s, influenced by the growth of unions, government policy, and an increasing awareness of the need to manage properly, man agement’s concern for and approach to problems previously dealt with inadequately has been on an ascending scale. The prevailing attitude of the new generation of managers has been that every organization consists fundamentally of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JENE 1963 people and that the way to succeed competitively is to so organize company policy and operation as to tap fully the contribution of individual employ ees at every level. Many union officials, over the years, have tended to overlook this fundamental change in management attitudes, and have tended to act as if today’s problems were still the problems of the 1930’s. Instead of the zeal and evangelism the unions displayed during the period of their greatest growth, we now see a relative conserva tism and formalized institutionalism. The staff has shifted from unpaid, concerned volunteers to the more detached, paid professionals. Leaders have grown old in office, and both they and the membership have lost some of the excitement of early struggles in the latter-day security that has been achieved. To some extent, it could be argued that the unions have entered a stage of ritual in their development. As problems arise, many seek the same remedies that worked 20 and 30 years ago. Yet the changed conditions may not be dealt with in old-fashioned ways. Management today has grasped this fact more thoroughly than many union leaders, and it has seized the initiative. Organized Cooperation. Labor-management rela tions need to mature to the stage where organized cooperation replaces reliance on power, and there is greater reliance on fundamental agreements about the nature of the problems confronting both institutions. On both sides, there has to be a greater acceptance of techniques and programs designed to deal with particular institutional problems and the problems of employees as individuals. A fundamental need is a better method of communication between labor and management, to promote better understanding by each of the needs of the other. For example, there ought to be a clear understanding of the economic facts about the company, its markets, and its position in those markets. In the interplay of economic and social forces, no company can guarantee for participants in the enterprise what it cannot guarantee for the enterprise itself—absolute se curity and continuity of income. What it does owe its employees, in addition to the obvious “fair day’s pay for a fair day’s work,” and the 635 MANAGEMENT’S ADJUSTMENT TO CHANGE competent exercise of the management function— is honesty regarding the facts of the enterprise that affect the employee’s ability to look out for his own interests, opportunity and reward related to ability and contribution over and above need, and provision for sharing equitably the economic burdens as well as the rewards of the operation. In the area of adjusting to technological change, both labor and management need to reexamine their attitudes, policies, and techniques. Some of these, worked out in the past, have outlived their usefulness. For example, those devices which are based on the premise of restricting the rate of economic change cannot continue under today’s conditions ; nor can obstructive make-work practices by organized labor; nor can business itself avoid a share of responsibility for employ ment planning, job relocation, and retraining. We need to emphasize the advantages rather than the disadvantages of technology. In fact, a more rapid rate of economic growth and full utilization of technological change are imperative to our economic survival as a Nation. These objectives will be accepted by workers if it can be demonstrated that they are also com patible with worker security. We need, therefore, a blend of public and private policies which will enable the labor market to function more effec tively. I believe there are some things we can and must have to acheive what I prefer to call full “techno logical reemployment,” without hardship. And these are: 1. The same degree of planning for jobs by the individual company that is involved in planning for the technological advance itself. 2. More and better retraining programs, both by business and by community schools. 3. Better information on job opportunities and strengthened public employment services. 4. Appropriate maintenance of income for the temporarily dislocated worker through unem ployment compensation, supplemented by private means. 5. Private and public financing for relocation of qualified workers. 6. Elimination of improper hiring barriers based on such factors as race, creed, sex, or age. 7. Intelligent cooperation between management and labor to speed economic growth. 8. Profits adequate to provide investment incentive. The ultimate “policy” for worker security, as it is for most other problems of practical action, is the effective use of all our human instrumentali ties and mechanism, each in its proper role and its proper way . . . the corporation, the union, government, and the market place. . . . a great many employers find it in their interest to provide training for their employees and we can infer that such training will help those in the median age ranges and with higher educational attainments to acquire specific skills. Many more employees will receive job training this way than through any governmental program, however grandly conceived. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — From a speech by George P. Schultz, Dean, Graduate School of Business, University of Chicago, at the Annual Meeting of the Chamber of Com merce, April 30, 1963. The Union Agenda for Security Job and income protection have now supplanted other benefit programs as chief union priorities; the con quest of insecurity, however, requires the fulfillment of the full employment commitment. J oel S e id m a n * U n i o n p r i o r i t i e s have shifted over the past three decades as the labor movement has sought to solve the most pressing problems of its member ship within the context of collective bargaining, supplemented by legislative action. Union organi zation is now much more widely extended than it was at the beginning of this period. Union-man agement relations have managed to adapt to a succession of economic changes. The first two decades created program priorities directed first toward depression, then toward the World War II Government regulation and reconversion ; and the Korean conflict and inflation pressed new items to the head of the list until the 1950’s. Whereas organizational needs for security and workers’ desires for higher wages and protection from illness and aging were leading issues in the earlier years, in more recent times high and persistent unemployment related to technological change has confronted the labor movement of America with its most dramatic challenge: To achieve the greatest measure of job or income security possible for workers without unduly restricting produc tivity and economic progress. With unemploy ment hovering just under 6 percent of the labor force, with automation and rationalization steadily eliminating large numbers of jobs while the labor force continued to grow by more than half a million persons annually, union objectives under went substantial changes until the emphasis had shifted, by the end of the 1950’s, to programs to provide greater job and income security. Faced with declining profits (and in some cases with increased competition from abroad), many employers became increasingly determined to lower costs and sought to eliminate or escape work rules and practices inherited from the far less competitive war and immediate postwar periods. 636 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The problems facing both management and unions were complicated in industries such as railroading and coal mining that have suffered a decline in demand. Workers displaced by technological in novation often found their skills obsolete, and workers of middle age who found themselves un employed for any reason faced additional, some times insurmountable, barriers to obtaining new employment. Such workers held legitimate claim to the concern of both union and management. Some companies planned technological innova tion long in advance and introduced it slowly so as to minimize the dislocation of present employees. Particularly in growth industries the dismissal of employees could be kept to a minimum by capitalizing on the normal attrition of the work force and by retraining for other work some of those whose skills became obsolete. In other cases, the task of protecting the interests of dis placed workers fell in the first instance upon the individual himself or on the labor movement, with the burden ultimately resting, in many cases, upon government agencies. Though unions have retained the allegiance of their members and remain in a strong bargaining position in many of the country’s leading in dustries, it is apparent that the strength of the labor movement has been eroded. Blue-collar workers engaged in repetitive tasks, who have long constituted a major part of the core of in dustrial union attachment, were among those most vulnerable to the new technology, while the growing army of white-collar workers were far less receptive, especially at the technical and professional levels, to union approaches. The presence of a substantial body of unemployed diluted the bargaining position of many parts of the labor movement, while automatic or nearly ‘ Professor of In d u stria l R elations, U n iv ersity of Chicago. THE UNION AGENDA FOB SECURITY automatic processes immunized a number of industries against union economic pressure. The main varieties of union responses to worker insecurity are: (1) Programs to increase or preserve job opportunities and income security, (2) pro grams to allocate the remaining jobs equitably, and (3) programs to ease the burden on those displaced. Job and Income Protection The labor movement learned long ago in this country as in others that it could not bar tech nological progress and that efforts to do so were sure to fail. Instead, unions have sought to con trol the rate of technological advance, to minimize its dislocating effects, to reduce the workweek, or to obtain for workers—both those displaced and those remaining in employment—a share of the proceeds. Some unions, as on the railroads, have fought a delaying action to preserve the largest possible number of jobs, while others, as in coal mining, have put no obstacles in the path of technological progress. Union manning require ments, along with resistance to new materials and output controls, have led to management charges of obstructionism, particularly in railroading, construction, printing, and entertainment. In some of the cases, however, safety or reasonable working speeds are objectives, along with the creation or preservation of job opportunities. In a direct approach to job protection, the Kailroad Telegraphers, hard hit by transference of work to other crafts, general force reductions, and the threatened closing of little used stations, won an agreement from the Southern Pacific Railroad in October 1961 that no more than 2 percent of a specified number of jobs could be abolished in any one year; the settlement guaran teed 40 hours’ work or pay per week to men on the extra board, and provided severance benefits for laid-off employees. Similar issues led to a 30-day strike against the Chicago & North Western Railway in 1962, which was resolved by a similar agreement, except that the carrier won the right to abolish jobs, provided it gave 90 days’ notice and severance pay according to length of service. The differences in the settlements may be due to the fact that the Southern Pacific had been expanding its operations in a rapidly growing i See M. D. Kossoris, “ Working Rules In West Coast Longshoring,” Monthly Labor Review, January 1961, pp. 1-10. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 637 section of the country, whereas the Chicago & North Western had been retrenching. A somewhat less rigid approach has been taken by the Transit Authority of the City of New York, which has agreed with the Transport Workers that permanent employees will not be laid off because of automation or other im provements in efficiency of operation but will be assigned to other duties without reduction in pay. Similarly, the recent New York City newspaper strike settlement permitted the publishers to set stock exchange tables with the use of outside teletypesetter tape, provided no employees would be laid off as a result; publishers will make savings by reducing the force as printers leave their service. In the basic steel industry, the clause denying companies the right to change local working conditions even in the absence of technological innovation was retained after figuring prominently in the 1959 strike, though not all companies had the clause or found it a burden. Nevertheless, some job losses not related to technological change have occurred in particular operations in the recent years of low plant capacity use in instances where management traded increased production at a plant for the size of crew it thought appropriate. In the West Coast longshore industry, signifi cant because of its size and the flexibility of the union’s approach, the employers’ association and the International Longshoremen’s and Ware housemen’s Union reached an agreement in 1960 which gave the employers a free hand to intro duce laborsaving machinery and to modernize work rules, in return for payments of $5 million yearly for 5y2 years into a jointly managed fund.1 The fund is to be used to guarantee fully registered longshoremen a specified number of hours’ pay per week, to provide for a payment of $7,920 to a man reaching 65 after 25 years of service as a fully registered longshoreman, and to provide supplemental pay to men who retire, on a volun tary or compulsory basis, at ages 62 to 64. This agreement was preceded by substantial decasualization of the work force, which constitutes an important difference between the labor force in the industry on the East and the West Coasts. Twice in late 1962, East and Gulf Coast dockworkers, organized in the International Long shoremen’s Association, struck over wages, wel- 638 fare, and pension issues—and the employers’ demand that work gangs be cut from 20 to 17 men. In their strike settlement, the parties agreed to a Department of Labor study of the manpower utilization and job security issue, to be followed by further negotiations. If no agree ment is reached by July 31, 1964, the issue will go to a panel for hearing. Following a different approach, the Musicians established Music Performance Trust Funds in 1948, placing a tax upon mechanical devices to support personal performances by instrumental musicians.2 Under the current agreement, record ing companies pay to a trustee from 1.2 to 2.9 percent of their manufacturer’s suggested retail price, for free performances at educational, charitable, or civic activities. Reduced Working Hours. Much of the union effort to increase the number of job opportunities has taken the form of reduction in the hours of work without a cut in take-home pay. Currently, the labor movement as a whole is continuing its push for shorter hours, an objective that finds both management and the Kennedy Administra tion in opposition. A reduction of working hours from 40 to 35 without reduction in earnings would be bound to affect prices in many industries— though the impact on prices would be lessened, of course, if the change were made in steps over a period of time. This objective will be pursued through legislative means as well as through col lective bargaining. The United Automobile Workers urges legislation to achieve a flexible adjustment of the workweek based on the level of unemployment, with weekly wages maintained at the equivalent of 40 hours’ pay; the additional cost, under the UAW proposal, would be reim bursed to employers from a special fund financed by a tax on payrolls. In the controversy over shorter hours, it is sometimes forgotten that the 40-hour workweek is no longer standard, shorter hours having al ready been achieved in a number of industries. Akron rubber companies, for example, led by Goodyear, instituted the 6-hour day and 6-day week in 1930 in an effort to share the work. The International Ladies’ Garment Workers’ Union won its first 35-hour, 5-day agreement in 1933. In the printing industry, the prevalent workweek has long been shorter than 40 hours.3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 New York City construction electricians, who had enjoyed a basic 30-hour workweek since 1934, won a basic 25-hour week in January 1962; under both agreements, 5 hours of overtime were guar anteed weekly at time and a half. In the fall of 1962, construction electricians in Chicago won the 7-hour workday, and in a number of other indus tries the 37K- or 35-hour workweek has already been achieved. Another way of reducing hours of work, thereby opening up job opportunities for the unemployed and for new entrants to the labor force, has been lengthening paid vacation periods. Once limited primarily to salaried, white-collar workers, paid vacations for manufacturing workers ex panded in the late 1930’s, with an employerfinanced, pooled vacation fund established in the ladies’ garment industry in 1937. The freeze on direct wage increases during World War II gave a strong impetus to the spread of paid vacations. The principle of paid vacations is now generally accepted for blue-collar workers, except in indus tries where job changes are frequent and seasonal layoffs common. Whereas the 2-week paid vaca tion was most common a decade ago, by the late 1950’s the 3- or 3%-week vacation maximum was most widely in use, and at the present time, the maximum is 4 weeks in a large and growing num ber of graduated vacation plans, with the 5-week maximum found in some instances.4 In 1962, the United Steelworkers negotiated an unusual vacation clause with the Continental Can and American Can Companies, providing a 13week vacation every 5 years for employees with 15 or more years of service. Teamster local unions in the New York City brewing industry, which had already achieved a 35-hour workweek with 4 weeks’ vacation after 5 years’ employment, recently negotiated a “vacation security” clause under which vacation time has been increased to a maximum of 7 weeks for those with service over 25 years. For the first 2 years, the additional weeks can be taken only as needed, under joint * For more information on the Music Performance Trust Funds, the West Coast Longshore Mechanization and Modernization, the Armour Automa tion Fund, and similar developments, see Thomas Kennedy, Automation Funds and Displaced Workers (Boston, Harvard University, Graduate School of Business Administration, 1962). 3Union Wages and Hours: Printing Industry, July 1,1961, and Trend 190761 (BLS Bulletin 1315,1962). * Paid Leave Provisions in Major Contrads, 1961 (BLS Bulletin 1342, 1962). THE UNION AGENDA FOR SECURITY union-management decision, to prevent layoff; at the end of that time, the unused time may be taken by the employee at his own option. The union campaign to reduce the hours of work may take other forms. In its 1961 bargaining the UAW listed the following major approaches, in addition to any that management might suggest, that it was prepared to explore in an effort to get its unemployed members back to work: Reduction of the workweek without loss in pay; Reduction of the workday without loss in pay; Reduction of the workyear without loss in pay ; Early retirement; and Control of overtime.5 While overtime, with its premium rate of pay, is welcome to large numbers of workers, the UAW has criticized some managements for scheduling overtime rather than increasing the number of workers on their payrolls. To discourage this practice, for which it says penalty pay of time aud a half is not a sufficient deterrent, the UAW pro poses double pay for overtime, with triple pay for work above 10 hours a day or on Sunday. Income Security for the Employed. Whereas the movement toward shorter hours of work has as a major objective the creation of additional job opportunities, the effort to obtain work or wage guarantees seeks greater income security for those already on the payroll. Beginning in the latter years of the last century, various types of wage and work guarantees were extended by manage ment, usually in relatively stable consumer goods industries. Following World War II, labor efforts to obtain comparable guarantees in such industries as automobiles and steel manufacturing led to the extension of supplemental unemployment benefits, beginning with the Ford-UAW agreement of 1955. Work or wage guarantees have been developed extensively in the meatpacking industry. Even under the recent downward modification, the Hormel plan, one of the oldest and best known in American industry, still guarantees annually, to every worker who establishes seniority, 1,872 work hours or the equivalent pay, with provision that no one can be laid off without 52 weeks’ » Workers’ Problems Are Democracy's Problems: A Declaration of Principles, Priorities, Purpose—UAW Special Collective Bargaining Convention, April 27-29, 1961 (Detroit, United Automobile Workers, 1961), p. 29. See also“ Special Bargaining Convention of the United AutoWorkers,” Monthly Labor Review, June 1961, pp. 611-613. « For text of this plan, see Monthly LaborReview, February 1963, pp. 151-160. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 689 notice. In the sugar refining industry, the Packinghouse Workers has attained a work guar antee of 52 weeks of 40 hours each year. In its contracts throughout the packing industry, the same union has a provision, first obtained in 1945, that a worker who is not laid off by the end of a working week enjoys a guarantee of 36 working hours for the week that follows. A number of other unions have negotiated some sort of guarantee. Such guarantees are found in the organized retail industry, where the contracts of the Retail, Wholesale and Department Store Union generally provide for 52 weeks’ pay yearly for all full-time employees. The Teamsters Union has obtained a number of guaranteed wage plans, especially in the St. Louis area, with a guarantee of 2,000 hours of work a year applying to a varying percentage of the work force in different plants. Laundry workers in New York City, represented by an affiliate of the Amalgamated Clothing Workers, are guaranteed either 40 hours of work a week or a weekly wage. A UAW contract with the Buffalo Machinery Co. provides an annual salary for shop workers, to be paid despite sickness, absence for urgent personal reasons, or production dif ficulties. This represents the achievement, on behalf of production employees of a small com pany, of the kind of income security enjoyed by white-collar workers—a bargaining objective that the UAW is seeking to obtain throughout its industry. The UAW contract with the Air Re duction Sales Co. of Lima, Ohio, stipulates that any employee who works at any time during a workweek is guaranteed 40 hours of working opportunity during that week or its equivalent in pay. An unusual plan to enlist the cooperation of employees in production, providing them with job and income security in turn, was adopted by the Kaiser Steel Corp. and the United Steel workers in December 1962. The main focus of the plan was on reducing the cost of materials and supplies and encouraging employees to use the most efficient methods by giving them an agreedupon percentage of the savings; one of the im portant features, however, was a guarantee of jobs and income to participating workers.6 A few unions, particularly those in the needle trades, have sought to increase job opportunities for their members by promotion of their industry’s 640 products. Union label campaigns are another device to promote the sales of unionized segments of industry. The Millinery Workers has engaged in other unusual efforts to conserve jobs. In 1961, when the Merrimac Hat Co. of Amesbury, Mass., found itself in a precarious financial position, the union raised half a million dollars of capital funds to become majority stockholder, thus preserving the jobs of its 325 members in the company’s employ. In 1954, when the Kartiganer Hat Corp. was in financial difficulty, the union lent $50,000 to the company and encouraged the unionized employees to lend an additional $200 each, increasing the rescue fund to $180,000. The latter firm, which is in a healthy position today, has repaid the loan in full. The union has also purchased one loft building and lent mortgage money on a second, in order to preserve buildings in which women’s hats were manufactured and sold. The Amalgamated Clothing Workers, which for many years has operated its own banks in New York City and Chicago, has also extended credit to employers in order to save jobs. In other cases, as in the hosiery industry and in meat packing, union members have taken substantial cuts in pay to dissuade employers from closing their plants or from moving to lower wage areas. Pressures on Government. The Federal Govern ment plays an important role in maintaining the level of employment through, for example, wagehour legislation, foreign trade regulations, and public works programs. Moreover, taxes and subsidies, as in the case of transportation, affect the relative ability of particular industries to com pete for consumer patronage. In many of these legislative issues, such as tariffs or subsidies, lines of interest follow industry boundaries, with management and union in the same enterprise or industry finding their objectives identical—and sometimes opposed to those of management and union in industries that are competitive with their own. In other cases, as in wage or hour legislation, the entire labor movement is likely to be on one side of the controversy, with management either united on the other side or split into unionized and nonunion segments with opposing interests. State or local government may similarly affect the level of employment, with similar alinements of union and management. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1S63 In industries faced with growing foreign com petition, such as textiles or garments, employers and unions are likely to cooperate in efforts to persuade Government to impose tariff or quota restrictions on imports, though other unions have sought to educate their members to accept a free trade position. In the lead and zinc industries, the Mine, Mill and Smelter Workers has sought to protect domestic jobs through import quotas or taxes, subsidies, stockpiling, and an international agreement regulating world trade in these com modities. Railroad management and unions co operated to oppose the St. Lawrence Seaway, and to urge an end to subsidies and the imposition of taxes on competitive industries such as airlines or trucking. Coal operators and the United Mine Workers readily unite to protect their industry from threats from competitive fuels. Ship builders and the unions of their employees join to obtain Government programs for increased shipbuilding, and management and unions in the construction industry cooperate to increase the volume of public works. An example of divergent interests being pressed before Government is the railroad industry, where management has sought to solve its financial problems in part through mergers, and the rail road unions have urged disapproval by the Interstate Commerce Commission on the ground that jobs would be eliminated. A similar division occurs over another issue involving legislative action—the level of the minimum wage. Here the labor movement urges a raising of the level, primarily to raise the wage costs of nonunion concerns, thereby protecting the markets of higher paying unionized firms, reducing the incentive for them to relocate in nonunion areas, and increasing the likelihood of raising unionized wages through collective bargaining. Equitable Allocation of Jobs When the number of jobs in an enterprise declines, unions are concerned over allocation of those remaining. Here the area of disagreement between management and union is likely to be minimal, although differences often arise between the relative weight to be accorded ability as against seniority, and over the effect on efficiency where “bumping” is permitted. Unions tend to insist on a fairly rigid seniority system for layoffs, THE UNION AGENDA FOR SECURITY to enlarge the size of the seniority unit, to provide for employment rights in other plants of the same company, and to seek moving allowances where such employment rights exist. Not all unions establish seniority systems, how ever; where the job is of short duration, as in the construction industry and some of the service trades, hiring halls may be used as devices to assemble information about jobs and distribute work opportunities equitably. In the case of some of the crafts in these industries, a combina tion of apprenticeship limitations, high initiation fees, and the closing of the membership books during periods of acute job shortage is used to keep the supply of eligible workers in equilibrium with the volume of jobs available. In certain seasonal industries, as in the garment trades and shoe manufacturing, a system of equal sharing of work, once the newest employees have been laid off, is used in slack times, rather than a straight seniority system. Worksharing may be modified however, by supplementary unemployment bene fit plans, since workers receiving such benefits, combined with unemployment compensation, may be better off than those working only part time. Seniority is combined in a variety of ways with preference to highly valued employees on the one hand and with equal division of work on the other.7 The issue of job rights for displaced workers has become important in the automobile industry, and contract clauses providing for broadened seniority rights or preferential hiring have been negotiated.8 Faced with problems of layoffs, unions generally have sought to enlarge the size of the seniority unit for this purpose, as by figuring seniority on a plantwide rather than on a departmental basis. In multiplant companies, similarly, efforts are frequently made to obtain transfer rights, though this causes conflicts of interest within the union between the employee who transfers to a new loca tion and the employee already at the site. Where substantial amounts of severance pay are obtain able under a contract, however, workers may choose this in preference to transfer rights. The 7 See Sumner H. Slichter, James J. Healy, E. Robert Livemash, The Impact of Collective Bargaining on Management (Washington, Brookings Institution, 1960), ch. 6, for a discussion of worksharing and layoff systems. This volume also deals with other topics covered in this article, including severance pay, pension plans, make-work rules, and union attitudes toward technological change. 8 See Philip Taft, “ Interplant Transfers in the Automobile Industry,” Monthly Labor Review, March 1963, pp. 276-277, for a discussion of the opera tion of such clauses. 686133— 63-------3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 641 Packinghouse Workers established master agree ment seniority dates in its 1961 agreements providing that, in the event of plant shutdowns or permanent reductions of force, displaced workers could move to any job in other plants that they could perform, provided that the persons so dis placed had been hired after the seniority dates established by the master agreement. Under the current agreements in the basic steel industry, an employment pool is established at the bottom of the job classification structure. An employee’s standing within this pool is based on his total plant seniority without regard to other seniority regulations, to guard against situations in which long-service employees might be laid off from some departments while juiior employees were kept at work in others. These pool pro visions, operating within a single plant, are supple mented by intra- and inter-regional transfer ar rangements which are more limited in scope but which extend job transfer rights from a depart mental or plant basis to a companywide basis. Protection of the Displaced A number of programs ease the burden on those who are displaced by technological advance or who lose their jobs for other reasons beyond their control. Of particular importance are severance pay, supplementary unemployment benefits, lib eralized pensions and early retirement provisions, and retraining programs. In addition, there have been several joint union-management efforts, of which the Armour Automation Fund is perhaps the best known, to study the human problems caused by technological displacements. Severance Pay. Recently, there has been increas ingly wide acceptance of the principle of severance pay, the amount of which is usually linked to the employee’s length of service. Some unions, such as the Newspaper Guild, have long negotiated a model contract clause providing that the employee, upon termination of his employment, is to receive a lump sum equal to 3 weeks’ pay for each year of service. Some unions negotiate a graduated scale, with workers receiving more severance pay per year for service after perhaps 10 or 20 years. The ILGWU negotiated an industrywide plan in 1960, covering 450,000 garment workers, providing for weekly payments of $12.50 to $25 to be paid for as long as 48 weeks. Each eligible worker 642 also receives one-fourth of his total benefits in a lump sum. The fund, planned to reach a total of $10 million, is financed by employers’ con tributions of 0.5 percent of payrolls. One of the highest benefit severance pay plans was negotiated in 1962 by Trans World Airlines in resolving the stubborn dispute involving the Air Line Pilots Association and the Flight Engi neers incident to the reduction of jet cockpit crews from four men to three. Incumbent engineers were given priority to fill the third cockpit seat, providing they qualified as pilots. For those who decided against taking pilot train ing, or who failed the course, severance pay rang ing from $10,000 to $39,400 was provided. In Hawaii, displaced longshoremen receive severance allowances under ILWU contracts that sometimes exceed $10,000, with the unusual provision that men wishing to return to their country of origin— usually the Philippines or Japan—may receive free transportation. Supplementary Unemployment Benefits. Supple mentary unemployment benefits, earlier referred to, have spread widely since their adoption in the automobile industry in 1955. Since then, there have been constant efforts by unions to increase the sums paid under the plans and to lengthen the period of benefits. The 1961 General Motors agreement, for example, raised the com bined payments under unemployment compensa tion and supplementary unemployment benefits from 65 to nearly 75 percent of take-home pay, and increased the benefit period from 26 (temporarily 39) weeks to 52.9 Pensions and Early Retirement. Recognizing the difficulties confronting older workers who are displaced, a large number of unions have sought to ease the burden on them through pensions that supplement social security benefits or that provide for their wants until they are eligible for such benefits. In some cases, early and liberalized benefits are provided under union-management pension funds in order to persuade senior em ployees to retire, thus securing job opportunities for younger workers or preventing their displace ment. Though early retirement can be very costly, it protects the group that would have greatest difficulty finding other jobs. By late 1960, over 11 million workers, or 60 percent of those under union contracts, were covered by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 collectively bargained pension plans.10 Nearly nine-tenths of 300 plans analyzed by the BLS in the fall of 1959 permitted retirement under early or disability retirement provisions. Three-fifths of them provided for compulsory or automatic retirement, or some combination of these involun tary provisions.11 One of the early union-management pension plans was set up in the bituminous coal mining industry as part of a general welfare program financed by a royalty on tonnage mined. Under this program, which also provided sickness, dis ability, and death benefits, miners who had worked 20 years in the industry were eligible for pensions of $100 a month when they reached the age of 62. More recently, however, as the fund has encoun tered financial difficulties, pension and welfare benefits payable under its provisions have had to be reduced. Such difficulties, to be expected in a declining industry with large numbers of aged former employees, illustrate the problems that may be encountered in a nonvested, privately negotiated plan, dependent upon revenue from a single industry, as against a broadly based Gov ernment program supported by taxes. Where small employing units predominate, unions have negotiated industrywide pension plans, permitting labor mobility without loss of benefits while easing the financial burden on each employer. The ILGWU set up an employerfinanced pooled retirement fund in 1943, and the Amalgamated Clothing Workers has arranged, through reciprocity among areas and branches of its industry, for members who change jobs or move to retain their rights to retirement benefits, pro rating the costs among the various funds involved. Workers represented by the UAW at General Motors and Ford since 1955 have had vested pension rights. While some unions urge pension plans with vesting, others do not, permitting the loss of accumulated pension rights for workers who leave the industry and the union. The Retail Clerks in California has developed areawide pen sion programs, under which employees may shift from company to company without loss of rights. # This contract also established a short workweek benefit to provide pay at 50 percent of the regular hourly rate for each hour lost below 40 for unsched uled short workweeks and 65 percent for most scheduled short weeks. 10 See Health and Insurance, and Pension Plan Coverage in Union Contracts, Late 1960 (BLS Report 228,1962), p. 1. 11 Coverage of these plans was estimated at half total pension coverage. See “ Early and Disability Retirement Under Collective Bargaining, 1959,” Monthly Labor Review, November 1960, pp. 1176-1183 and “Involuntary Retirement Provisions,” Monthly Labor Review, August 1959, pp. 855-860. THE UNION AGENDA FOR SECURITY Several other union-negotiated or union-spon sored pension provisions will illustrate the wide variety of practices found in this field. The West Coast longshore agreement, referred to earlier, encourages voluntary retirement at age 62 with a monthly benefit of $220, which is reduced when the retiree becomes eligible for social security benefits. Payments made under this provision are subtracted from the retirees’ lump sum settlement. The Central States, Southeast, and Southwest areas pension fund of the Teamsters has recently reduced the normal retirement age of covered workers from 60 to 57. The retirement plans of the Packinghouse Workers, amended in 1961, now call for payment of $2.50 a month for each year of service. An employee of 55 with 20 years of serv ice who is displaced because of technological ad vance or plant shutdown, draws his full pension plus 50 percent until he is eligible for his social security pension, at which time his payment from the industry will be reduced to its normal amount. Retirement is compulsory at age 65. The UAW has negotiated comparable provisions in the auto mobile and farm equipment industries. Under agreements of the Street and Electric Railway Employes in Washington, D.C., and in St. Louis, employees who cannot qualify for positions as a result of changeovers from streetcar to bus opera tions are entitled to pensions. The Typographical Union, whose members’ pension are paid from union dues, is now seeking additional pension bene fits through collective bargaining. In an unusual experiment, contracts of New York District 65 of the Retail, Wholesale and Department Store Union provide for trial retire ment for workers age 60 or older, who may retire for as long as 6 months and then return to work without loss of seniority or other benefits. The union, which is opposed to compulsory retirement, found that many members failed to take advantage of voluntary retirement programs because they feared that the reduced income would be insuffi cient for their needs, or because they were fearful in other ways of their future in retirement. Most of the two dozen members who have taken advan tage of trial retirement have chosen to remain retired, the others returning to work for short periods of time or on a part-time basis. i* Monthly Labor Review, November 1962, pp. 1260-1261. 13 See Rennard Davis, “ Skill Improvement Training for Electricians and Plumbers,” Monthly Labor Review, October 1961, pp. 1074-1080 for a discussion of this program. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 643 Retraining Programs. Unions have also sponsored, sometimes alone and sometimes with industry, government agencies, or both, a variety of pro grams to help prepare those currently employed for more demanding jobs or to retrain workers displaced by technological advance for skills more in demand in American industry. Under the rulings in some States, however, unemployed workers who attend retraining programs lose their right to unemployment insurance, since they are considered unavailable for work.12 A great many craft unions have supplemented apprenticeship programs with efforts to develop journeyman job skills or keep members abreast of changing tech nology. Perhaps the most elaborate such effort sponsored solely by a labor organization is that conducted by the Typographical Union, which operates a $2,500,000 training center in Colorado Springs, Colo., which has trained some 2,000 members in various new printing processes since it opened several years ago. The International Brotherhood of Electrical Workers, which among other educational projects has developed a 2-year industrial electronics course, estimated in the fall of 1962 that 50,000 journeymen members of the union were then engaged in or had completed one or more courses designed to improve their job skills.13 A number of unions have agreements with employers which provide for retraining displaced workers or create a fund to finance such training programs. One of the most ambitious of these, established in 1959 by Armour and Co. in coopera tion with the Packinghouse Workers and the Amalgamated Meat Cutters, has sought to train displaced workers for whatever skills seemed to be in demand for which they had the necessary basic qualifications. Several hundred workers have thus far participated in retraining programs, with inconclusive results. Nevertheless, such efforts contribute to an understanding of the problems involved in technological displacement and retraining. Another union-management venture, similar in many ways to the Armour effort, was developed in February 1962 by U.S. Industries, Inc., and the Machinists, which have set up a Foundation on Automation and Employment, financed by con tributions scaled to the sale or lease price of the company’s automated machines, to study the problems of workers affected by technological change. 644 In 1961, International Good Music, in coopera tion with the IBEW, set up a trust fund, financed by 5 percent of its receipts from the sales of automated equipment and program service, for retraining radio or television employees displaced as a result of such sales. In other situations, workers are retrained for jobs with the same em ployer, as when local transportation companies change from streetcars to buses. The UAW has proposed a program of aptitude tests, training opportunities, and job preference, to facilitate transfer of production workers to white-collar vacancies with the same company. A local of the Communications Workers of America has itself subsidized testing of operators who might be dis placed by automatic equipment, to see whether they have the aptitudes necessary for clerical jobs with the company. Several operators whose tests showed high aptitude were then tested by the company and transferred to clerical work. Conclusions This review of union efforts to alleviate inse curity illustrates the wide diversity of programs that have been undertaken, particularly in recent years. Belying primarily upon collective bar gaining, but also seeking to influence govern mental action where appropriate, unions have sought to preserve or increase the number of jobs, to allocate declining job opportunities equitably through the operation of seniority, and to provide severance pay, retirement benefits, or retraining to ease the lot of displaced workers. Though most such measures find unions arrayed against managements, in some instances labor and man agement in the same industry have joint interests against rival industries. Still other issues, such as the “bumping” rights of displaced workers or the carrying of seniority to other plants of multi plant companies, reveal differences of interest within union ranks, while measures such as the raising of the statutory minimum wage may split management groups. Struggles over jurisdic tional rights, on the other hand, find different national or local unions in conflict with each other. As a chronic problem of insecurity developed in the postwar period, a wide variety of devices in various industries and over a period of years have been employed in efforts to solve the prob lems of job and income insecurity. Devices de veloped to deal with one problem have sometimes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOE REVIEW, JUNE 1963 been adapted to serve another purpose as well1 as with the use of bargained pension plans, originally devised to supplement social security benefits, to promote early retirement. Faced with a general problem of job and income insecurity, the leaders of each union have sought to develop protection for their members in the light of the particular situation. How successful they are in this, as in other bargaining demands, has depended upon many factors. Once a par ticular measure has been achieved in a key unionmanagement bargain in a leading industry, a pattern-following process is set in motion in that industry, along with a widespread tendency for the device to be copied by or adapted to a number of other industries. Sometimes a farsighted management with a sense of social responsibility has taken the initia tive in solving some of the problems of insecurity that industrial developments have brought in their wake. In other cases, the problems have been beyond the ability of particular companies and unions—or even of industries—to solve, and have depended on governmental action. Union-management programs in some cases have been able to provide job security to those already employed, although at the price of providing less opportunity to the unemployed or to new en trants to the labor force. Efforts to provide improved benefits to the unemployed or to those past retirement age depend primarily on legis lative enactments, just as the development of a full employment economy is a task for which Government must take final responsibility. With the failure of our economy to expand sufficiently rapidly in recent years, unions have placed more emphasis on Government programs to provide job protection and encourage economic growth. Even the achievement of a full employment economy, however, would not solve all the prob lems of worker insecurity. Shifts would still occur in the occupational structure of the country, particular companies or industries would decline as others expanded, and particular areas of the country would experience a relative loss of job opportunities. Unions would still seek as best they could to provide income and job security for their members. With greater security in the economy as a whole, however, unions and man agement would be more likely to cooperate for productive efficiency, with higher living standards the reward for all. The Strike and Discontent The mounting effect of technological change on job security practices and on plant and wage administration offers little assurance of a decline in strikes over these issues which now account for one-third of all stoppages. J o seph W. B loch * I n t h e p r e f a c e to Strikes in the United States, 1880-1936, published in 1937, Commissioner of Labor Statistics Isador Lubin, in line with a traditional approach, characterized strikes in the following terms: A strike or lockout is an evidence of discontent and an expression of protest. . . . The number of strikes and their magnitude is, therefore, one indication of the degree of industrial unrest existing at any particular time or in any particular situation. * * * * * In general, strike statistics measure such unrest as pre vails under circumstances that lead workers to hope that they may better their conditions or mitigate a worsening of conditions through strike action.1 This view of strikes, although widely accepted 25 years ago, is rarely expressed today, at least as a generalization. Instead, there is a tendency to describe strikes as symptoms of temporary malfunctionings of collective bargaining or as “avoidable interruptions of operation,” or to accept a certain level of strike activity as a neces sary accompaniment to industrial peace, or to turn the tables completely and view each strike as a breach of responsibility—that is, the public replaces the strikers as the discontented. If one assumes, as do most students of the industrial scene, that dissatisfactions, if not dis content, are inherent in work, and that some degree of opposition, if not conflict, is inherent in unionmanagement relations, it may be premature to discard the old view entirely. Although labormanagement relations have greatly matured during recent decades, the collective bargaining structure, for all its growing institutionalism and professionalism, is obviously by no means dis content-free and strikeproof. The purpose of this article is to assess the Nation's strike record and attitudes toward the strike in an attempt to separate the strands of discontent and their https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis effects from institutional factors and bargaining strategy. No precise weighing of the respective aspects is possible, since the gray areas and the overlap are so large. The analysis deals with strikes in general, not, it must be emphasized, with national emergency disputes, missile-site strikes, and the like, which are special categories. The Current Character of Strikes If the volume of strike activity 2 serves as a measure of discontent and unrest, the record for the past 3 years (1960-62) marks a period of sustained contentment and tranquility unmatched in at least a generation, considering the size of the labor force and the extent of union member ship. The number of stoppages 3 averaged 3,438 a year; the number of workers involved averaged about 1,333,000; and strike idleness averaged about 18 million man-days. All three indicators were substantially below the levels for any com parable period since the late 1930's and early 1940's. Idleness as a percent of total worktime, the most significant single measure of strike activity, averaged 0.16 percent, the lowest 3-year level since the depression years 1930-32, except for the controlled war years 1942-44. As re flected in such aggregates, this was clearly an exceptional period, not to be written off, as any one year might be, as an accident of contract expiration timing. Even within the collective bargaining-union organizing arena, it is easy to demonstrate the low incidence of strikes in the aggregate. In *Of the Division of Industrial and Labor Relations, Bureau of Labor Statistics. 1 BLS Bulletin 651, p. v 3 BLS statistics do not differentiate between strikes and lockouts and, for the most part, the term “ strike” as used in reference to data in this article is intended also to include lockouts. 3 BLS data include all stoppages involving at least six workers and lasting at least 1 full day or shift. 645 646 1961, for example,4 1,517 stoppages developed from the renegotiation of agreement terms out of an estimated 100,000 contract expirations or re openings. In the frontier of union organization and penetration, there were 513 strikes involving only 36,300 workers. About 1,080 strikes,6 in cluding jurisdictional disputes, occurred during the term of the approximately 150,000 agreements in effect at any time during the year. The 17.5 million workers covered by union contracts lost less than a full day each, on the average, through strike idleness from any cause in 1961, and prob ably only about 1 out of 15 participated in or were directly affected by a strike. If trends in strike activity during the entire postwar period were projected into the future, further declines in aggregate volume might be expected. With the many problems now facing labor and management, however, only an optimist who remained unshaken by the implications of the recent longshore and New York newspaper strikes would expect a substantial decline in the immediate future. Moreover, industrial con flict, as the sociologists and psychologists look at it, persists in its diverse fashion and is not likely to disappear in the short run, whether or not it finds an outlet in strikes. In this extraordinarily peaceful 3-year period just concluded, there were adverse indications, and it is to these that we now turn. One of the more puzzling aspects of strikes in recent years has been the steady increase in average duration since 1955. This is contrary to often repeated assumptions that strikes in general are getting shorter.6 From an average (unweighted) of 18.5 calendar days in 1955, duration has crept up to an average of 24.6 days in 1962. During the past 3 or 4 years, average duration has been at a level equaled, in modern times, only during the organizing breakthrough period of the late 1930,s and during the im mediate postwar period, when the magnitude of union demands undoubtedly prolonged strikes. One plausible reason is that the issues involved in bargaining are expanding and becoming in creasingly complex. Although bargaining prom ises to become more complex before it gets simpler, this reason does not necessarily reflect an under lying bed of discontent. The increasingly preva lent long-term contract may have contributed to extending the duration of strikes simply by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 accumulating too many unresolved issues too long. Of a somewhat different order is another reason sometimes offered for long strikes—the availability of large union strike funds and strike insurance for employers, both defensive (or ag gressive) measures in the parlance of conflict. Strikes to obtain union recognition or to settle the terms of a first agreement, which have a pronounced tendency to last long, reflect an old and unsophisticated conflict in which the termi nology of battle and discontent is still current. There remain other less tangible reasons, in cluding the possibility, which cannot be dis missed offhand, that embitterments, personal antagonisms, other remnants of past battles, and unrest persist in sizable quantities. Strikes over seemingly small matters that last far beyond the point of economic gain to either party, or of any other rational goal in the view of a baffled public, are not uncommon. The wide year-to-year changes in strike idleness and number of workers involved, which charac terized the postwar strike picture until the past 3 years, were largely attributable to the impact of major stoppages (over 10,000 workers), and they masked rather persistent levels among smaller strikes.7 This underlying layer of strike activity continued with relatively minor variations during 1960-62. In other words, the favorable aspect of the 1960-62 record, as previously described, was created in large part by the lessening frequency or impact of large strikes. This, of course, is all to the good, especially if it signifies, as it may well do in the case of steel, that in major situations patterns of conflict or the habit of striking are breaking up. The attention of the public and the Government inevitably concentrates on the large strikes and may be partly responsible for their recent decline; even if their continued diminution could be achieved, however, the stubborn character of the underlying strike structure should dispel any notions that the strike is becoming obsolete. «Data for 1962, which differ little in the aspects for which 1961 data are quoted in this article, will be presented in the July issue of the Review. * The exclusion of stoppages lasting less than a full day or shift significantly affects this total, but the point is not materially weakened by making allow ances for these brief walkouts. 6 This assumption found its way into the report to the President from the Advisory Committee on Labor-Management Policy entitled “ Free and Re sponsible Collective Bargaining and Industrial Peace." See “ Report of Presi dential Committee on Pree Collective Bargaining,” Monthly Labor Review, July 1962, pp. 767-770. i See The Dimensions of Major Work Stoppages, 1947-59 (BLS Bulletin 1298,1961) or that title, Monthly Labor Review, April 1961, pp. 335-343. THE STRIKE AND DISCONTENT Another symptom of unease, possibly unrest, may be found in the volume of stoppages arising during the term of agreements. Few would deny that the spread of grievance procedures and grievance dispute arbitration ranks among the great postwar innovations in labor-management relations.8 The considerable achievements of these institutions have obscured the realization that they are not universal, that they do not apply to all sources of disputes and conflict, and that they do not dispose of all problems to which they are directed. At any rate, in 1961, there were 1,084 stoppages during the term of agreements, of which 363 grew out of disputes over plant administration matters, 315 out of interunion or intraunion disputes, and 145 out of job security disputes. Resulting idleness accounted for about 12 percent of the year’s total. This incidence conceivably represents only a minute fraction of the volume that could be expected in the absence of grievance and grievance arbitration provisions. On these speculative grounds the volume might be dismissed as inconsequential, were it not for the nagging possibility that it may be increasing. Unfortunately, data prior to 1961 are not avail able; the question and its implications thus must be left hanging. Changing Issues Another way of evaluating the changing char acter of strikes and their elements of discontent is through a study of trends in major issues.9 It may be argued, with justification, that the stated issues in disputes are not the real “reasons” for strikes. Reasons, if at all susceptible to analysis, are deeply buried and cannot be excavated, except possibly on a case-by-case basis. Issues, on the other hand, are what the parties say they are, and they can be readily classified and counted. In the American system of collective bargaining in which strikes are not called for political pur poses or deliberately to harm the employer, the union’s goal is a settlement and a return to work; issues, not reasons, are argued by the parties and s The Bureau of Labor Statistics is currently analyzing the grievance and arbitration provisions of union agreements for publication in 1963. 9 For the purposes of this article, the analysis of changing issues is based solely on the number of stoppages, not workers involved or man-days of idle ness. Since the categories used have not been consistent over the years, some rearrangement was necessary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 647 thus comprise a significant part of the facade of strikes seen by the public. Issues may, however, change in the course of a strike. It is difficult to grade issues in terms of the relative degree of discontent or insecurity they may reflect, since circumstances differ so markedly in time and place, but it seems plain that strikes to obtain general wage increases, fringe benefits, hour decreases, or their combinations, would not rank high in such a scale in a high-wage economy. Throughout the postwar period, these were the predominant issues in strikes, fluctuating around 40 percent of the total on a fairly steady level. Wide year-to-year changes in the number of such stoppages show no decisive trend if the Korean conflict period is omitted. The postwar level was high, as measured against the past. In the long sweep, the trend of these strikes parallels, with occasional sharp short-term fluctuations, the decline and the rise of the trade union movement since 1920 and may reflect the strength and, in a sense, the fruits of organization achieved in many instances through another type of strike. In contrast, strikes to prevent a wage cut or an increase in hours or both, probably the most desperate type of strike, have all but disappeared. There were only 14 such strikes in 1961, 14 in 1960, 16 in 1959; in only 2 postwar years did they exceed 1 percent of the total. Such strikes have never been experienced by the vast majority of today’s union membership and probably have been forgotten by a large segment of the public, yet they occupy a prominent place in the history of strikes between 1881 and the late 1930’s. Dur ing the depression periods 1921-22 and 1930-32, they accounted for up to 50 percent of all strikes. The desire on the part of many employers to reduce wages in the press of business adversity has not disappeared, although such an act may not be as urgent as in the past and is certainly less feasible; the trade union movement would claim credit for this gap between desire and action. While few would wish a reverse ratio, the relatively high incidence of strikes for general wage and fringe advances and the rarity of wage cuts sets the stage for adverse reaction to strikes in general. Strikes over union organization issues (recogni tion, union security, strengthening bargaining position, discrimination against union members, etc., often accompanied by economic issues) historically have taken place on the frontiers of 648 the spread of unionism. They tend to carry over, even to this day, the language of conflict which characterized the early development of labormanagement relations in the United States.10 From a relatively low level in 1932 (yet second to wage cut strikes in that year), the number of union organization strikes climbed rapidly to an alltime high in 1937. The second highest level was reached in 1941, followed by a sharp drop in the war years 1942-43. The third highest level was reached in 1946. Since then, at least partly under the influence of the Taft-Hartley Act, the number has sharply declined, reaching the lowest level since 1932 in 1960 and 1961. As a percent of all strikes, union organization strikes have dropped to virtually their lowest level since the turn of the century. The postwar decline in strikes over matters relating to union organization may be attributed to, or reflected in, the relative stability in prevalence and type of union security provisions and the failure of the trade union movement to expand. Since unions plan to advance upon the larger strongholds of nonunionism (white-collar employment in particular) with a strike-deempha sizing approach, a continued withering of union organization strikes seems likely. Jurisdictional disputes and disputes between rival unions that result in a work stoppage have roots in worker concern over job security and employment opportunities, but they have also been nourished by interunion battles in which something other than the jobs of members was at stake. Jurisdictional and rivalry strikes have increased during postwar years to new high levels; indeed, they reached their peak after the merger of the AFL and CIO in 1955.11 In 1961, there were over 300 strikes of this type, the highest ever recorded. Sympathy strikes, a low-keyed aspect of union cooperation in the United States, persist at hardly noticeable levels, but show no signs of disappearing. Two important categories of strike issues, which can be grouped only under such broad terms as “other wage practices” and “other working condi tions,” generally relate, more intimately perhaps than the issues previously discussed, to plant operations, to the day-to-day workings of unionmanagement relations, and to the problems that grow out of grievances and that provoke grievances. “Other wage practices” would include disputes over incentive systems and standards, job evalua https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 tion, job classification and rates, downgrading, and other wage-rate determination or administra tion matters; “other working conditions” would include the host of issues relating to job security (seniority, layoff, transfer, subcontracting, new machinery, etc.) and plant administration (phys ical facilities, safety, supervision, work assign ments, work rules, discipline, etc.). In the fluctuating volume of strikes since the early years of World War II,12 the two groups of issues have moved along closely parallel lines, both peculiarly sensitive to wartime conditions and controls. Each category reached an alltime peak in 1944, declined in the immediate postwar years, rose again during the Korean emergency, and has declined since then. During the entire post war period, excluding Korea, “working conditions” issues fluctuated within a range of about 20 to 25 percent of all stoppages, while “other wage practices” were the major issues in 8 to 12 percent of the strikes. Together, they have accounted for almost a third of all stoppages in recent years, placing them second only to general wage issues. The prospect of mounting problems induced by the impact of technological change on job security practices and on plant and wage administration offers little assurance of a future decline. Attitudes of the Participants The view of the strike structure just drawn is not what the participants normally see. Unions, employers, and workers see primarily the strikes in which they are, or may be, involved or which directly affect them; the press and the public tend to concentrate on the big strikes, the strikes in essential industries, the irritating strikes, the pro longed strikes; possibly only the Federal Mediation and Conciliation Service and the State mediation agencies are thoroughly familiar with such a view of the strike structure, although they might analyze it differently. In the remainder of this article, some observations are offered on current attitudes or postures of unions, managements, union members, the public, and Government as T h e instruction s issued b y un ions on how to organize an d b y em ployer organizations a nd advisers on h ow to resist organization are still u n abash ed ly m ilitaristic. 11 An improvement in BLS coverage, stimulated by a stronger and more open approach to jurisdictional and rivalry disputes on the part of the Fed eration and the construction industry, may account for part of this increase. 12 Data or other wage practices are available only since 1942. THE STRIKE AND DISCONTENT seen against this background. The qualifications and limitations of such general observations are too obvious to require listing. The Unions. The union approach to the strike appears to be in the process of slow change. During the postwar period, trade unions have been largely collective bargaining oriented, seeking a progressive expansion in the scope of agreements, “good” contracts, and fair administration from employers who often have substantially different ideas on these matters. Although the labormanagement antagonisms which sparked the organizing and recognition campaigns of the prewar years, and which inevitably survived them, have been disintegrating, the past is too recent not to continue to exert some influence on union behavior insofar as strikes are concerned. Many, if not most, of the leaders of national unions and of the AFL-CIO are veterans of the campaigns of the 1930’s. The desire of many unions to build large financial reserves and special strike funds is based, at least in part, on a traditional instinct for preparedness. The basic structure of unionofficer-member relationships and discipline was established during conflict periods. The persist ence of an instinct for opposition, so readily aroused by certain types of management behavior, is nurtured by memories of the past, even if it were to receive nothing more to feed on. Yet, except for isolated spots outside the mainstream of the labor movement and established collective bargaining, ideologies are dead, violence is vir tually gone, and the strike has shed much of its emotional overtones. Except for occasional “wild cats,” the strike is largely under the control of the individual unions, and its use is more likely to reflect strategy than stress. The strategy, to be sure, is that of the local or national unions, not of the AFL-CIO or the labor movement as a whole. Sensitive to members’ actual and possible discontents, the labor movement as a whole, with some exceptions, is not about to disown its use of the strike in peacetime, even if, at times, it may deny parentage. It not only remains the ultimate, if undesirable, weapon in the type of collective bargaining practiced in the United States; it is, to the labor movement, still the ultimate test of a free society. Yet, as the previous data have suggested, not the strike but its derivative, the overt or implied threat of strike, has become 686133— 63-------4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 649 labor’s indispensable tool. This, in concert with a desire on the part of unions to avoid strikes, pro vides motivation for the peaceful renegotiation of all but a small fraction of contracts expiring each year and for the widespread acceptance of grievance arbitration. Impartial industrial rela tions experts have long acknowledged this role of strikes and the threat of strikes, and Federal legislation recognizes the right with relatively little restriction outside the railroad and airline industries and in national emergencies. Perhaps the principal explanation for the self-consciousness on the subject of strikes displayed by union spokesmen in recent years lies in the reluctance of the public to accept stoppages as an integral part of established collective bargaining, but recogni tion of the dilution of basic discontents may be a contributing factor. The Employers. Since strikes are directed against employers, it is natural for employers to abhor strikes, not only because of the costs and inter ruptions involved but because of the inference of discontent inherent in a strike. Employers or managers, like union leaders, remember the past and remain sensitive to behavioral patterns carried over from other times and circumstances. They, too, put experience to practical uses. Through more aggressive, more professional per sonnel administration, many companies seek to get at the roots of employee discontent and to neutralize adverse developments. They con tribute toward institutionalizing the contractrenegotiation strike and removing its sting as an expression of discontent by closing down opera tions (rather than attempting to hire replace ments) and by remaining on good terms with strikers in diverse ways—paying vacation bene fits and insurance premiums, sometimes providing coffee and shelter for pickets, and so on. Within the scope available to them, managements learn how to plan production around a possible strike situation. They balance their own dread of a strike against the union’s, and sometimes “take” a strike for tactical purposes. It has become the practice in recent years, among commentators on the labor-management relations scene, to refer to management’s “hardening of attitudes,” interp reted as an increase in obduracy, not in bargaining skill, as if it were a general attribute. Although there are unquestionably some outstanding cases 650 which may have a contagious influence, the strike data previously presented lend very little support to this “hardening” hypothesis, at least up to 1963. Support is not forthcoming from other points. Undoubtedly irked from time to time by unfavorable arbitration decisions, few companies have seriously sought an end to grievance arbi tration. Although management frequently frets about the price paid for the assurances offered by long-term contracts, their prevalence is increasing and their durations are lengthening, largely at management’s insistence. Unity among unions and union locals, long envied or castigated by employers, has its counter part in the employer association with bargaining functions, which is still, despite innovations, basic ally a device available to employers to counteract “whipsawing.” Multiemployer agreements, it is estimated, account for about a third of total agree ment coverage, a ratio that has not changed significantly since World War II, but formal agreements do not take into account the rise of informal, or even undercover, cooperation through which strategy and data are swapped. Modern union-association bargaining tends to pit profes sionals against professionals, union reserves against association reserves, and union unity against association unity. It would seem that a more aggressive approach among employer associations, symbolized by the use of the joint lockout and by strike insurance, may be developing, but these techniques still have relatively minor importance in the whole picture. Union Members. Since the principal outlet for the discontents of union members is in collective bargaining, it seems necessary to emphasize that collective bargaining agreements are negotiated by union representatives and managements, that with or without strikes they are essentially prod ucts of compromise, and that despite their steadily increasing size and scope they do not, and can never, cover all the areas of possible discontent. The day-to-day administration of employeremployee relations, moreover, is channeled into grooves which, under the terms of most agree ments, either eliminate consideration of workers’ grievances not involving the interpretation or application of the agreement or, if they allow such grievances, provide no terminal point in arbitra https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 tion. The union typically makes the decision as to how far a grievance dispute will be carried. In this institutionalization of labor-management re lations 13and of industrial law, it would seem that the individual worker (with his own list of frustra tions and inequities, both real and fancied) re ceives only those satisfactions which this type of representative government affords. In the aggre gate, these satisfactions sustain and justify the trade union movement and collective bargaining; more to the point, they provide the grounds for worker support without which most strikes would be hopeless ventures, although it may be reasoned that the greater the sum of satisfactions the lesser will be the inclination to strike for more. Nonetheless, outlets will be found for any sub stantial residue of unresolved work-related dis contents. One such outlet is the unauthorized “wildcat” strike; another is the union itself. To a certain degree, the agreement and its administra tive machinery (unless it stalls) comprise a buffer shielding management from employee discontent, which then may be directed toward the union and its leaders. This redirection of discontent, along with other factors, may result in changing the leadership, casting aside one union for another, refusal to ratify agreements,14reluctance to pay or increase dues, or simply in apathy insofar as union affairs are concerned. The consequences maybe healthy or disruptive; in this context, it might be noted that union members traditionally lag be hind their leaders in accepting and adjusting to technological change, and they show no over whelming appreciation for restraint in wage bargaining, even in periods of wage controls. The Public. There may be little room for doubt as to how the public feels about strikes that affect national health or safety, but deciphering the public attitude toward strikes in general is often, in practice, a subjective exercise. The assumption 13 There was a time when impromptu workers’ groups and employee com mittees, which sometimes shunned the designation of “ union,” could form, solicit help, score a point or fail, and dissolve, all without attracting the attention of the outside world. This may still be happening, but the LaborManagement Reporting and Disclosure Act defines all such groups and com mittees in the trade limits of the act as “ labor organizations,” and thus they are required to submit reports and observe the proper procedures required of more formal organizations. 14 William E. Simkin, in “ Today’s Topics at the Bargaining Table,” Business Horizons (Indiana University, School of Business), Summer 1962, p. 78, notes that “ we have been experiencing a mounting number of referendum rejections of negotiated settlements, even in instances where local union leadership has been instrumental in achieving the settlement.” THE STRIKE AND DISCONTENT that the public dislikes strikes is hardly a debatable one, since the tactic implicit in most strikes is to withhold goods or services; the significant ques tions, however, relate to the degree of dislike, changes in this level, and its effect. Every strike has its own public, and many have several (e.g., different classes of consumers, suppliers, competi tors, local merchants, other managements, and other unions) which may be visualized as forming concentric layers of involvement. The very mul tiplicity of publics and the variety of reactions possible in each render meaningless such gener alities as “the public exaggerates,” “the public is apathetic,” or “the public is increasingly intoler ant,” although such findings may well apply to specific strikes and specific publics. Depending on one’s inclinations, it may be argued, for ex ample, that public intolerance is increasing because strikes are growing longer or, conversely, that strikes are growing longer because the public is increasingly apathetic. On the other hand, the existence of a changing general public attitude cannot be dismissed as a factor in the current strike picture on the grounds that there are too many publics and that their re actions cannot be adequately measured, if the other participants act as if a distinct change in public attitude had taken place. Unions and manage ment may not sample general public opinion, but they do read newspapers; considered all together— the press, impartial observers, unions, manage ments, and Government—it would appear that the assumption widely prevails that the public has been increasingly disturbed by, and has be come increasingly intolerant toward, all strikes. The reasons and the degree of feeling are variously interpreted. Yet, while public reaction may now be more of a factor in union and management strategy than in the past, those who would rely on a certain sustained reaction in a specific situation continue to do so at their own peril. Government. The paradox of increasing govern ment anxiety about strikes in the face of a long-term downward trend in strike activity can be explained only by reference to international https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 651 and economic issues not ordinarily considered within the immediate framework of labor-manage ment relations. Government officials outside the Federal Mediation and Conciliation Service, to the extent that they become directly or closely involved in strikes, have been concerned mainly with “national emergency” disputes and with similar types of disputes which could not be covered by Taft-Hartley procedures, either because of the act’s definition or because the formal pro cedures were not appropriate to the dispute. If there is now a single dominant attitude toward strikes in general, it is that strikes are wasteful, they they are avoidable, and that the parties have a responsibility to avoid stoppages “in the public interest.” This is, essentially, a working approach to strikes; it does not attempt to ex tinguish real discontents with which Government itself is deeply concerned. The Taft-Hartley Act assigned to the Federal Mediation and Con ciliation Service the duty to assist parties in dis putes to “prevent or minimize” stoppages and established the mechanism of advance notice to FMCS and State mediation agencies of intent to terminate or modify an agreement. The extent to which mediation agencies have helped to prevent or shorten contract renegotiation strikes is an important, if unmeasurable, factor in postwar strike developments, as is the contribution of mediators toward diluting the emotionalism and the personification of issues that frequently attend bargaining and strikes. Since the early 1930’s, the Government has tackled the basic discontents of working men and women through a variety of methods dis cussed in other articles in this volume. The trade union movement, pressing for but never satisfied with minimum legislation, sought and obtained additional benefits from employers, often through strikes. At the present time, in the early flood of job security problems created by a rapidly changing technology, union leaders are becoming increasingly aware of the limits of collective bargaining and look to Government for solutions. The future of the strike in the United States may be determined, in part at least, by this issue. Where bargaining relationships are established, unions have greater security today than was ever anticipated, but where unions are weakest, they have not had the legal support they need to perm it workers an effective selection of agent. The Security of Worker Institutions G eorge W . B ro oks * T h e o u t s t a n d i n g a c c o m p l i s h m e n t of the Amer ican labor movement is the establishment of the “rule of law” in the employer-employee relation ship. Wage increases and other economic objectives may have more frequently provided the drive for union organization and collective bar gaining, but the most significant and lasting contribution of the trade unions since 1933 is the shift from unilateral determination of the condi tions of employment to an elaborate legislative, administrative, and judicial procedure in which the worker himself plays a meaningful role. The idea of the rule of law has been, at least in part, the objective of every local and national union for more than a century, but it was not until the National Labor Relations (Wagner) Act made collective bargaining our national policy that the rule of law was extended to the citadel of U.S. industry. The rule of law, which began as a regulation of hiring and discharge, has been extended to almost all aspects of the employment relationship, including the administration of pension and health and welfare plans and the response to technological change. This accomplishment, in a day in which the labor movement is subject to increasing criticism, is almost universally accepted. The influence of the unions extends far beyond the boundaries of formal organization. Partly to avoid union organization, but even more because union organization has become a permanent part of our way of life, large numbers of employers whose workers are unorganized imitate the 652 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis practices of organized companies. Some even establish “grievance machinery,” although such devices are likely to be spurious. Traditionally, the establishment of a rule of law has been a principal objective in the American worker's search for security. The very word “security” has meant protection from arbitrary or capricious employer action and the creation of a set of reliable, predictable expectations. More over, this is the only aspect of security for which American workers have been able to create effec tual organization. In West Europe, labor move ments have developed cooperatives and political parties together with the trade unions, and secu rity is pursued along all three lines. In the United States, the major governmental security pro gram—the Social Security Act—was inspired and engineered outside the labor movement, at first even without the help of the unions. This is not to say that the labor movement is currently uncommitted to economic security through Government action. The unions do pay attention to legislation and support political edu cation, but as an auxiliary function. The national unions are organized fundamentally for the pursuit of collective bargaining objectives. They are not readily adapted to other purposes. The remainder of this discussion will focus on the institution built for the purpose of pursuing and protecting economic security through collec tive bargaining, namely, the trade union. ♦V isiting Professor, N e w Y ork State School of Industrial and Labor R elations, C ornell U n iv ersity . THE SECURITY OF WORKER INSTITUTIONS Acceptance of the Union Institution Almost everyone is now prepared to accord the unions a permanent place in our society. If work ers are to be freed from management caprice, they must have institutions which organize and artic ulate their own aspirations. The right to or ganize and the right to representation require that labor organizations be given legal protection from the assaults of management. The Wagner Act established this view as national labor policy. The prohibition of unfair labor practices was then buttressed by the principles of majority rule and exclusive representation. Taken together, they gave the unions, as institutions, a large measure of security. An adequate assessment of the current position of the unions requires a reminder of the relevant philosophy of the Wagner Act and of the condi tions to which it was intended to be responsive: First, workers are entitled to a voice in the de termination of their own employment conditions, including that array of goals embraced in the idea of “security.” Second, the union and collective bargaining are the ideal instruments for articulating the aspira tions of workers. The machinery of the union provides for the formulation and achievement of goals by workers themselves. For this reason, the National Labor Relations Board (NLRB) is care fully excluded from any voice in determining the terms of collective bargaining agreements. Third, Federal law is necessary to protect unions which otherwise are unable to maintain them selves against a determined antiunion employer. Finally, the goals of the workers and the goals of the unions are one and the same; security for one is security for the other. Every retrospective anatysis of the Wagner Act agrees that its authors correctly discerned the remedies for the conditions of their time. Our current difficulties arise because the conditions have in some respects been fundamentally altered. The Union’s Position Today The most striking change since 1933 has been in the legal and economic position of the unions, 1 R obert M ichels, Political Parties: A Sociological Study of the Oligarchical Tendencies of Modern Democracy, translated b y E den and Cedar P au l (N ew Y ork, D o v er P u b lication s, In c., 1959). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 653 the national unions in particular. The end result of many different forces and events has been increased security for the established union and a consequent alteration of its relations with the employers and with its members. The principal forces or causes at work have been impersonal economic and political changes which have created larger and larger bargaining units, more and more centralization in the collective bargaining process, and increasing complexities (or apparent complexities) in the agreement itself. In consequence, many workers have been divorced from significant participation in, or control over, the collective bargaining process, even where neither members nor officers intended this result. Thus the central Wagner Act assumption—that the union provides direct, responsive, continuous representation—is no longer completely valid. And the more this is true, the less accurate is the assumption that the enhancement of the security of the union may be equated with the objectives of the workers, including their own security. It may or may not, but certainly the assumption made in the Wagner Act is not automatically true. Labor organizations are no exception to the general proposition that organizations develop lives of their own, that large and successful organi zations become profoundly concerned with their own perpetuation and growth, and that the pursuit of these objectives is not necessarily consistent with, and may even be opposed to, the objectives for which the organization was created. Michels’ general thesis, first proposed in 1916, that estab lished labor organizations tend always toward oligarchy is by now firmly established.1 The “ security of the union” (again, particularly the national union) thus has quite different meanings to different people. The elected or appointed union official finds it difficult, at least in his own organization, to distinguish between the security of the union and the security of the workers it represents. It would be surprising if it were any other way, and even more surprising if his concept of security for the union did not include a relatively impregnable position for himself and his entourage. He will equate the security of the union with an absence of challenge to the full-time officers and representatives of the union and will do everything in his power to limit the possibilities of such challenge even when, or 654 perhaps especially when, the challenge is based upon dissatisfaction with the kind of representation which they have given. A union leader who could not identify his personal interest with those of the organization would probably be made of poor stuff. On the other hand, in a democratic society, it is not necessarily wise for everyone to agree with him, least of all the members of his own organization. They also want unionism protected, but they see the issues in different terms. In the absence of significant contrary evidence, we take for granted that most employees who are represented by unions do not wish to see the force of unionism removed from the employer-employee relationship. Even many unorganized employees would not wish to see unions disappear. For both the organized and unorganized, however, this does not necessarily mean adherence or loyalty to par ticular unions and certainly need not involve personal loyalty to specific union leaders. Work ers might fear, hate, or despise the union leader who speaks for them and still not wish to “go nonunion.” They might welcome and embrace the results of autocratic unionism and still resent the autocracy. Some (and they are apparently joined by numerous representatives of manage ment) apparently believe that there is some direct connection between a lack of democracy and an abundance of economic benefits. Forces Increasing Union Security Public policy, therefore, cannot concern itself solely with the simple question of whether the union ought to be secure. The question of union security needs to be critically examined to discover those ways in which it does or does not contribute to the security of the worker and to his new status acquired mainly through union efforts. For both Government and management have seen fit to surround national unions with protective walls. They have reinforced the tendencies toward cen tralism and thrown their weight on the side of minimizing the challenge to established unions and established union leadership. N LRB Decisions. The Government has strength ened central control in the unions in the best of causes—the cause of stability in industrial rela tions. Although the annual reports of the Na https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 tional Labor Relations Board in the 1930’s demon strated a steady awareness of the problem of balancing freedom of choice against stability in labor-management relations, in the end, the Board’s weight was thrown on the side of stability in so many ways as to put established union leadership in a nearly impregnable position. In retrospect, it appears that the key decisions were made when the NLRB was suddenly and embarrassingly confronted with the fact of rival unionism. Never did an agency carry out its duties more reluctantly than did the Board when the rise of the Congress of Industrial Organiza tions forced it to deal with disputes between unions. But once the step was taken, the whole arsenal of measures for protecting the union against management—including exclusive repre sentation, majority rule, protected certification, and multiplant unit determinations—was avail able to give established unions protection against rival unions and to insulate union officialdom from attack inside the union. The “contract bar” doctrine is an example. This doctrine was first adumbrated around the necessary and obvious judgment that a union ought to have protection for a reasonable period of time after winning an election in order to cope with a management which might be recalcitrant. Virtually all of its present significance, however, in the light of the current trend for long-term contracts, is that it prevents any opposition group to the established leadership of the union, whether inside or outside, from seeking a change in repre sentation except during relatively brief periods at infrequent intervals. Only recently, the Board has increased from 2 to 3 years the period during which a contract may protect a union from challenge,2no matter what degree of dissatisfaction may exist. This change had the support of unions and employers. Most of the unions within the AFLCIO, party to the no-raiding agreement, have become convinced that elimination of interunion raiding is not only in their own best interests, as incumbent officers and incumbent unions, but also in the best interests of the country. Employers, for reasons of their own, have the same preoccu pation with preserving the status quo. 2 General Cable Corp. and International Union of Electrical Workers (139 NLRB No. 111). THE SECURITY OF WORKER INSTITUTIONS A far more important grant of security from Government to the unions stems from the pro tection of multiplant (including multiemployer) units from challenge except on the basis of the entire bargaining unit. These multiplant units are not usually established by the Board on the basis of economic considerations inherent in an industry, but by agreement of the parties. When the Board holds that no election may be held in a multiplant unit (which may be as large as a quar ter of a million workers spread out over the entire country) except for the whole unit at once, it in effect grants the union a monopoly of represen tation. Since it is now being widely argued that Government authority ought to be used to limit the “power” of unions through new legislation, it is ironic that so much of that “power” depends on protection from the Government itself. Changes in Management Attitudes. There have been equally important changes in the attitudes of management affecting the security of the union. There are persistent areas of antiunionism, but there has also been widespread and construc tive accommodation to unions by companies throughout U.S. industry. Unfortunately, this accommodation often develops into forms of collaboration and collusion which undermine the union as a representative institution. When companies move from hostility to collaboration and collusion, the very weapons that unions develop to protect them against a hostile manage ment are quietly transformed into instruments to protect union leaders against changes within the union or in the collective bargaining representa tive. The existence, side by side, of a wide range of employer attitudes toward unions has presented our legislators with some of their most perplexing problems. Consider, for example, that aspect of the security of the union which traditionally bears the name of “union security.” Confronted by a persistently hostile management, a union cannot survive without some form of union security—the closed shop, the union shop, the hiring hall—as a means of preventing the employer from pecking away at the membership of the union. But the union shop or another form of union security may become, and often does become, a very different institution when the employer is no longer anti union and may be committed to a close working https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 655 relationship with the leadership of the incumbent national union. In many industries today, there is no expectation and no desire to get rid of the union. The union shop becomes then a device through which management supports the union’s control over its membership, or at least the union’s control of its income. This arrangement is not “union security” in the historical sense, but rather a form of “income security.” It may not contribute in any Way to the security of the worker or to the other avowed goals of unionism and may even work in the opposite direction. The combination of the cooperative employer, the union shop, and centralized bargaining removes most of the pressure upon the union leaders to maintain that close responsiveness to union membership which exclusive representation assumes. The most recent controversies in the aerospace industry illustrate dramatically the distinction between “security of the union” in its broad sense and “union security” in its traditional meaning. The aerospace companies apparently have com bined, formally or informally, to resist the demands of all unions in the industry for any form of union security. Their strategy, however, is very differ ent from what it was in the days of the TaftHartley union shop elections in 1948 and 1949, when attacks upon union security were universally interpreted as attacks on the union. The workers, at least, were convinced then that the attempt to take away the union shop was merely a prelude to an attempt to take away unionism altogether. In the recent conflict, the aerospace companies have taken a different tack. Far from identifying oppo sition to union security with opposition to union ism, they have instead reaffirmed their belief in collective bargaining, have said good things about the unions involved, and have argued only against union security in its narrowest sense. The union leadership has retorted that the attack on union security is merely a prelude to an attack on unionism, and they may be right, since some of the drive against union security in aerospace comes from quarters that make it difficult to believe otherwise. But the security of the institution of the union and union security in the narrow sense are not necessarily identical, and apparently workers who believe that the union itself is not threatened are less willing to fight for a union shop. This presents union leaders with a problem; 656 most of them are not only unwilling but also unable to believe that there is a significant distinction between the two. Both Federal and State legislators have been plagued by an inability to deal realistically with this aspect of union security. The Taft-Hartley Act, attempted to introduce flexibility into the matter by permitting the States to adopt rules more stringent than Federal law. To date, 20 States have adopted such 'legislation, commonly termed “right-to-work” laws. For the most part, and for obvious reasons, these are the very States in which antiunionism is most prevalent and where some kind of union security is needed for the preservation of the union. It might have been wiser to prohibit right-to-work laws only in those States whose legislators could be persuaded to adopt them! Effects of Multiplant Bargaining. Multiplant bar gaining is another example of an institution which changes its character (though not its form) in accordance with the posture of the company, or companies, toward the union. Multiplant bar gaining, and especially marketwide bargaining, starts as a defense against standard-cutting employers. The problem is especially virulent in industries marked by a large number of low-capital enterprises in a highly competitive market. Against the ever-present threat to standards which exists automatically in such markets, the union’s only defense is the standard agreement, preferably negotiated with representatives of all the employ ers under a single contract. For the clothing and trucking industries, to use some obvious examples, it is an indispensable arrangement. Multiplant bargaining in recent years, however, has been extended to industries dominated by large multiplant corporations not subject to com petition resembling that found in clothing and trucking. Nor are these corporations “antiunion” in the sense attached to that term in 1935. Here a multiplant bargaining arrangement is a closed system managed jointly by the leadership of the union and of the industrial relations department. It is closed in the sense that no rival union may intrude because of the NLRB doctrine noted earlier, and for the same reason, it is closed in practice to internal dissent. The arrangement is self-perpetuating and self-aggrandizing. Once a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 multiplant bargaining system has been firmly established between a union and a corporation, all the new plants built by the corporation can be added to the multiplant contract by mutual agree ment, and they will be except in rare circumstances. These arrangements are apparently not re garded by employers as undesirable. Many corporate managements are persuaded that large multiplant bargaining units serve the cause of stability and are in the interest of the corporation. This view is not universal, and there are companies which prefer the flexibility of plant-by-plant bargaining to the security and stability of a single unit. This differentiation is one of the more important elements of flexibility in American labor-management relations. But the big multi plant unit is the characteristic arrangement in a number of major mass production industries; there the union has an unprecedented amount of “security.” What needs to be asked is, Security against what? or whom? The challenge to the security of the institution from management has been withdrawn altogether, at least for the time being. The current significance of the multiplant bargaining unit is that it gives the union protection against challenge from other unions or from dissident groups within the union. Effects of Landrum-Griffin Act. It is too early to assess the long-range effects of the LandrumGriffin Act (the Labor-Management Reporting and Disclosure Act of 1959), but ironically there is already evidence that it, too, serves to strengthen tendencies toward centralization and thus to increase the security of the union as an institution. The requirement of annual financial reports by the unions has probably not increased meaningful accounting to membership. It has encouraged employment of certified public accountants and has given national union headquarters a strong justification for supervising local affairs more closely than before. In response to bonding requirements, many national headquarters now secure bonds for local unions and thus have with drawn some autonomous activity from local officers. Although one part of the law requires a secret ballot election of the membership to increase dues, another part permits delegates at a con vention to raise dues without balloting by members. THE SECURITY OF WORKER INSTITUTIONS Forces Diminishing Union Security Other forces tend to diminish the security of the union or attempt to do so. Some of these have been proposals for legislation aimed at limiting union “power.” The current debate is inspired by the public reaction to strikes which allegedly affect the “public interest” ; in 1963, the strikes in longshoring, the New York City newspapers, and the Philadelphia transit system have all led to a rash of statements that the “power of the unions” must be restricted in one way or another. Very few serious suggestions are made to dis mantle or even appreciably weaken the union as an institution. Most go to a limitation on the weapons which labor may use to achieve its ends. In particular, compulsory arbitration and other substitutes for the strike are proposed to deal with those industries vitally affected with the “public interest.” None of the suggestions in volves depriving the union of a key role in the process. Perhaps in recognition of this changed tone, many labor people can now discuss com pulsory arbitration dispassionately. If most of the proposals were to be adopted, the security, the machinery, and the staff of most unions probably would not be materially affected. The employees themselves might lose something, and more important, the economy might lose a great deal of the freedom and flexibility which it now has. But these are not relevant to this discussion. A far more important threat to the security of the union results from the accelerated rate of technological change. For some unions, techno logical change has become a problem of major proportions. Moreover, losses of membership from this source in one industry are not being recouped in other industries. The major shift in the working population today is not dissimilar in magnitude or significance to the shift to mass production in the 1920’s and 1930’s. The trade unions in 1929 held strongholds in building con struction, railroads, and printing, among others, but they were steadily losing ground because the the rapidly growing mass production industries were unorganized and even uninfluenced by organization. A similar situation now threatens the unions in the new, rapidly expanding pro fessional, technical, and clerical occupations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 657 The acknowledged difficulty of organizing these occupations is exacerbated by certain unit provi sions of the Taft-Hartley Act. The requirement of separate elections for professional employees and what is in effect a prohibition of organization for supervisors have acquired an importance that could hardly have been foreseen in 1947. To illustrate, it was startling to learn during the union shop elections in the aerospace companies that large proportions of employees—40 percent or more—were not even in the bargaining units! Furthermore, the NLRB’s interpretations of the Taft-Hartley unit amendments have made them harsher than necessary. Although the act does not so specify, the Board has often ordered sep arate elections for technical or office clerical employees in a unit with other types of workers. These bargaining unit rules have had a double importance. Not only has the organizing of office and technical employees been made more difficult, because they cannot be “blanketed in” with manual workers, but the differences between manual and nonmanual employees have also been magnified unnecessarily. It is difficult to see this development as desirable. Note that the “ security” of the large manufac turing unions is not likely to be affected by the dramatic decline of employment in some of the mass production industries. Their bargaining positions may even be improved, and any loss of revenue can be compensated by a dues increase. But meanwhile, union organization is withheld from major groups of employees at the very time when they may need it most. In a period of rapid growth, when a multitude of adjustments must be made, employees need to have a voice in shaping decisions which will affect their livelihoods. The AFL-CIO unions have thus far had little success in organizing white-collar employees be cause of factors over which the Federal Govern ment neither has nor should have any control. But it cannot be denied that employer antiunion ism in this field is very strong and that the law and its administration have made a difficult job more difficult. An objective appraisal suggests that the obstacles to the organization of whitecollar workers are great, perhaps greater than can be surmounted, and that it would be sound public policy to remove some of them. MONTHLY LABOR REVIEW, JUNE 1963 658 Another influence diminishing the security of the unions is the “employer free speech*’provision of the Taft-Hartley law. Section 8 (c) says, The expressing of any views, argument, or opinion, or the dissemination thereof, . . . shall not constitute or be evidence of any unfair labor practice . . . if such expres sion contains no threat of reprisal or force or promise of benefit. Originally under the Wagner Act, the view was that the employees* choice of representatives was their exclusive concern and that the employer had no proper part in the debate on this matter. To day he is permitted wide latitude, with the result that new organizing is made difficult where the employer uses his economic position to influence and persuade his employees against joining the union. The situation is almost impossible when the union is confronted with a combination of a hostile community, an employer with “ free speech** and the employees* lively fear of reprisals. The Case for a Change in Public Policy Altogether, a major change of public policy seems needed. We are now launched on a course of action which has the effect of strengthening the security of the union in those places where it is least necessary. In established collective bargain ing relationships, today’s unions have a measure of security far greater than was anticipated. In part, this security of the institution derives from changes in attitudes and practices of management. In part, it derives from public policy which pro tects the union against assaults or even criticism. Furthermore, in these places the security of the union is not synonymous with the security of the workers it represents, and the connection between union security and employee welfare cannot be taken for granted. On the other hand, the support of the Federal Government is withheld from the unions in situa tions which require the very opposite policy. Where employer antiunionism is strong and but tressed by State and local government administra tions, the free speech provision of the Taf t-Hartley law and some of the unit decisions of the National Labor Relations Board restrict unduly the right to self-determination. In both situations just described, the tendency is to deprive the employees of adequate representa tion for discussion of their hours, wages, and working conditions. Some reversals of law and its interpretation seem desirable in both areas. The lifeblood of any union is what it does to safeguard each individual worker in his own place of employment—the day-by-day effort to ensure fair treatment for each employee in all aspects of his working life. This is a part of the labor movement that the public does not see, but it is the foun tainhead of all the rest. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -From an editorial “To Abolish Poverty and Unemployment” by George Meany in T he A m e r ic a n F e d era tio n ist, February 1963, p. 1. The Individual and the Union Workers are not yet adequately secure in their right to participate in the exercise of power within the organiza tion, but protection is gradually emerging through administrative, legislative , and judicial decisions. Alfred W. Blumrosen* T he a b i l i t y of the individual to influence his union is an important aspect of worker securityunder collective bargaining. The union, which has promoted employment security for the work ers, is in a powerful position to dilute or deny such security. Thus the issue of worker security be comes intertwined in the relation between indi vidual and union. The attitude of the legal system toward the worker-union relationship has undergone a drastic transformation during the last half century. Fifty years ago, the union was viewed as a social club which acted only in the self-interest of its members and whose expansion, at the expense of employers and nonunion employees, could not be justified. The internal affairs of the union were largely left alone by the courts, under the doctrine of judicial nonintervention in the affairs of a nonprofit society. By degrees, the legal system moved toward the Wagner Act theory that the union is a socially desirable institution which promotes the public interest in the economic position and dignity of the worker. Under this concept, the union was given a broad privilege to expand its organization over the objection of some employers and employ ees who may have preferred individual bargaining. In internal affairs, the freedom of action which the earlier period had afforded was now justified on the additional ground that it facilitated collec tive bargaining. Toward the end of this second period, in the mid-1940’s, the legal system began to regulate the freedom of the union in internal matters. The attitude toward unionism of the third period—the present—also emerged gradually. It may be characterized as respectful regulation of the union. Unions are recognized as legitimate interest groups in our society, exercising powers granted by consent and by statute but subject to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis restraints to protect other interests. For instance, in the interest of those who wish to avoid unioni zation, the privilege of expanding organization has been limited. Further, to prevent the abuse of its power in internal affairs, the union is subject to restrictions never before imposed. The following analysis of the relation of worker and union is based upon the distinction between union organizational activities and union activities in the collective bargaining process. The Organizational Context Organizational Rights of the Union. Fifty years ago, many of the organizational activities of unions were subject to injunction. Unions could not engage in strikes and picketing for organiza tional purposes,1 since rights of workers were not recognized by the law as either justifying col lective action or supporting legislation.2 Further more, the right of the employer to enter into employment contracts which denied worker secu rity was placed on a constitutional pedestal.3 The courts protected the interests of employers and un organized employees in being free from unionization. In the second period, which began in the 1920’s and culminated in the National Labor Relations Act of 1935, the enhancement of worker security through collective bargaining became national * Professor of Law, Rutgers-The State University. 1 Plant v. Woods, 176 Mass. 492, 57 N.E. 1011 (1900); Loewe v. Lawlor, 208 U.S. 274 (1908). 2 Similar judicial reluctance to recognize worker security is found in the interpretation of individual employment contracts during this period. In 1895, the New York Court of Appeals adopted a “rule” announced in 1877 in the work of Horace G. Wood, A Treatise on the Law of Master and Servant (Albany, N.Y., John D. Parsons, Jr., 1877), pp. 271-274, th at individual employment contracts were to be interpreted as “at will” and not providing job security, unless the parties had very explicitly indicated to the contrary. Martin v. New York Life Insurance Co., 148 N.Y. 117, 42 N.E. 416 (1895). This rule overturned earlier decisions which had indicated a greater willing ness to interpret employment contracts as providing a definite term of em ployment. Franklin Mining Co. v. Harris, 24 Mich. 115 (1871). 3 Adair v. United States, 208 U.S. 161 (1908); Coppage v. Kansas, 236 U.S. 1 (1915). 659 660 policy. The antiunion “yellow-dog” contract, which had been encouraged by the courts of the earlier period, was declared unenforcible, first by the courts 4 and then, in 1932, by Congress in the Norris-LaGuardia Anti-Injunction Act.5 Such contracts were outlawed altogether in 1935 in the Wagner Act, which fully recognized the right to organize.6 The right to picket for organizational purposes was recognized in a grudging and limited way by the U.S. Supreme Court in 1921 7 and then by Congress in the Norris-LaGuardia and Wagner Acts. The Supreme Court further protected the right to picket, first under the principle that picketing involves constitutionally protected speech 8 and later under the principle of “pre emption,” which prevented State and Federal courts from enjoining peaceful picketing except where Congress specifically permitted injunctions.9 Thus, the power of the union to extend its organization by the use of the economic pressures implicit in picketing was established. Employees and employers who sought to remain beyond the range of organization were subjected to adverse economic consequences. The union’s objective of eliminating competition among employers based on wage differentials justified the infliction of economic harm. However, nonunion employees were owed certain obligations, including the elementary one of nonviolence.10 The ability of the union to expand its organi zational power was promoted by the decision— taken in 1935 and maintained to this day—that union bargaining power would be analogized to the territorial power of a governmental unit, rather than to the contracting power of a personal agent. The National Labor Relations Board (NLRB) was to determine the “ appropriate bargaining unit” which defined the boundaries of union power. Within that unit, once the majority of employees wished union representation, the union was given power to bargain for all the employees. This majority rule principle was justified as an appropriate method of maximizing the group bargaining power.11 Individual con tracts containing less favorable terms than those which had been collectively bargained were inconsistent with this principle and were made subservient to the collective agreement. For most purposes, the individual contracting power of the employee was destroyed, and the union https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 was free to negotiate a final arrangement of the terms of employment with the employer.12 In the present period, which originated in 1947 with the Labor Management Relations Act (LMRA) and came to full bloom with the adoption in 1959 of the Labor-Management Reporting and Disclosure Act (LMRDA),13 union organizational rights have been restricted. In 1947, Congress limited the right to picket for organizational purposes where another union was certified as bargaining agent.14 In 1959, the principle of majority rule was also applied to limit union expansion, when Congress made picketing for recognition or organizational purposes an unfair labor practice under certain circumstances, i.e., (1) when another union is lawfully recognized, (2) an election has been held within the preceding 12 months, or (3) picketing has been conducted without a representation petition being filed within a reasonable time (not to exceed 30 days).15 It remains possible for a carefully designed picket line to influence customers of the nonunion em ployer—so long as no work or delivery stoppages result—under the protection which the 1959 amendments to the LMRA afford “ informational picketing.” This suggests that the unions may continue, through consumer picketing, to expand organization through economic pressure where the community of customers is already union minded, but that in areas where unionization has not been accepted by the consuming public, the picketing is likely to be ineffective. It will be ineffective also where the customers of the employer do not come to the plant or place of business being picketed. * Exchange Bakery & Restaurant v. Rifkin, 245 N.Y. 260,157 N.E. 130 (1927). s 47 Stat. 70, 29 U.S.C. sec. 101-115 (1932). 6 49 Stat. 449, at 452: "Section 7. Employees shall have the right to self organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining or other m utual aid or protection.” The right to refrain from such activities was added in 1947. i American Steel Foundries v. Tri-City Central Trades Council, 257 U.S. 184 (1921). 8 Thornhill v. Alabama, 310 U.S. 88 (1940), modified in International Brother hood of Teamsters, Local 695 v. Vogt, 354 U.S. 284 (1957). 8 San Biego Building Trades Council v. Garmon, 359 U.S. 236, at 245 (1959). id For a more extensive analysis of this development, see my article, “ Group Interests in Labor Law,” Rutgers Law Review, Spring 1959, pp. 432-441, 446-452, 465-471. n J. i. Case Co. v. N L R B , 321 U.S. 332 (1944). w For a fuller discussion of this point, see Benjamin Aaron’s article, pp. 666-673 of this issue. is The Labor Management Relations Act of 1947, 61 Stat. 136, P t. I, 29 U.S.C. sec. 141. The Labor-Management Reporting and Disclosure Act of 1959, 73 Stat. 519, 29 U.S.C. sec. 401. n Sec. 8(b)(4)(c). 1» Sec. 8(b)(7). THE INDIVIDUAL AND THE UNION At the same time, Congress tightened restric tions on secondary picketing.16 “Handbilling” but not picketing, is now permitted at the site of a secondary employer, and this only if it does not cause a stoppage of work or deliveries. These decisions reflect a legislative judgment that the interests of nonunion employers and employees should limit the right of the union to extend its organization by economic pressure. Obligations to Employees Being Organized. During the early period, when the union had no legal power to extend organization, it likewise had few obligations toward the employees whom it did organize. It was not obligated to admit anyone to membership or participation in internal affairs.17 This freedom continued into the second period, justified by the desire to allow the union freedom in collective bargaining. Unions were free to restrict membership, which denied nonmembers the right to participate in decisions relating to collective bargaining, and they were free to dis criminate in some other ways against non members.18 In the mid-1940’s, the judicial tide began to turn. The courts, in concurrence with the Supreme Court decision in Steele v. Louisville & Nashville RR.,12 began to require that the union act fairly toward all the employees they represent, whether members or not. The most striking example of such a requirement is the case of James v. Marinship Corp.20 In that case, the union attempted to justify the discharge of nonmembers under three principles of law: (1) A majority of the employees could select a union which would then represent all employees, (2) the union was not obligated to admit the minority of employees to membership21 and could therefore determine collective bargaining policies without participation by the minority, and (3) one such collective bar18 Sec. 8(b)(4), as amended in 1959. 17 Zechariah Chafee, Jr., “ The Internal Affairs of Associations Not For Profit,” Harvard Law Review, May 1930, p. 993; and Clyde W. Summers, ‘Legal Limitations on Union Discipline,” Harvard Law Review, May 1951, p. 1049. 18 Britt v. Trailmobile Co., 179 F. 2d 569 (C.A. 6, 1950). 19 323 U.S. 192 (1944). See also Wallace Corp. v. N L R B , 323 U.S. 248 (1944). 29 25 Cal. 2d 721, 155 P . 2d 329 (1944). In fact, they were not obligated to adm it to membership all who had voted for a labor organization. It is theoretically possible for a majority to designate a union which would admit to membership only a minority. This is not likely to happen as a practical matter, if full knowledge of union policies is available. 22 Sec. 7 and Sec. 8(b)(1)(A) and (b)(2) of the LM EA. 23 See Paul E. Sultan, “ The Union Security Issue” in Joseph Shister, Benjamin Aaron, Clyde W. Summers, eds., Public Policy and Collective Bar gaining (New York, Harper & Bow, 1962). 24 Sec. 101(a)(1) of the LM RDA . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 661 gaining demand, the closed shop, which was then lawful, would require the employer to hire or retain only members of the union. Simultaneous application of these three principles would allow the union to freeze nonmembers out of their jobs. The California Supreme Court in Marinship, held that this attempt was inconsistent with the duty to represent all employees fairly. It gave the union its choice of a closed shop or closed union, but not both at once. With the beginning of the present period, Congress began to impose obligations on the union toward employees who were brought within the range of its bargaining power by the majority rule principle. Congress forbade discrimination by the union against employees based on membership in the union,22 outlawed the closed shop, and allowed the union shop only if union membership was available to all employees. Congress further per mitted the States to adopt “right-to-work” laws which would foreclose union security devices, and thus allow nonunion employees to remain free of union dues. About two-fifths of the States have adopted such laws.23 But Congress, for political reasons, did not allow the NLRB to limit union power to restrict union membership. It thus remained possible for the union to represent a substantial number of workers who were not members and could not participate in its deliberations. Some unions adopted an inter mediate position of restricting the rights of par ticipation of some members. In 1959, Congress abolished such “ second-class” union membership.24 This enfranchised some members who had been barred from full participation in union affairs by internal union rules. But the franchise has not, as of this writing, been made universal. Unions may, and some still do, discriminate in admission to membership on racial and other grounds. This privilege, a last remnant of the rule of judicial nonintervention in the internal affairs of a private voluntary association, will, however, probably fall during this decade. It has been undercut by States’ fair employment practice laws and by the activities of the President’s Committee on Equal Employment Opportunities. The union has moved from the status of a private voluntary as sociation to that of a public authority with public responsibility, which must meet certain standards. One such standard is that those affected by public power are entitled to participate in some way in 662 the decisional process which leads to its exercise. Applying this standard to the union, all employees within the unit must be permitted to participate in its collective bargaining activities.25 The Union as Bargaining Agent The relationship between individual and union, once the organizational stage has been passed, involves problems in three areas—internal affairs, external political activities, and the collective bargaining process.26 Internal Affairs. The union is an institution in which the personal ambitions of the member may be channeled. Individuals and groups vie for leadership positions from which they may exercise such power as the union possesses. The tempta tion of the victor or incumbent to assure his posi tion by taking action against the insurgent or defeated minority is ever present and is not always resisted. The power of the leadership may be exercised in such a way as to threaten the employ ment security of the worker who has engaged in internal political activities. In the first period under study, the concept that the union was a voluntary association gave it substantial immunity from judicial efforts to protect the dissident within the organization. During the Wagner Act period, the courts began to protect internal union political freedom without expressly stating that this was their policy. How ever, in the third period, the basis for judicial action was made clear.27 In 1958, the New York Court of Appeals held, for the first time, that the union member had a legally protected right of political opposition within the union and that the union could not retaliate against the dissident.28 In 1959, this principle of internal political freedom was written into the LMRDA.29 The right to participate, without retaliation, in the political activities of unions is imperfectly protected. Three of the weaknesses in the protec tion of this right are discussed here. 1. The rights pertain only to members. As stated earlier, the law does not yet afford the op portunity to participate to all who are subject to the union rule. Much of the union’s power is exercised within the collective bargaining process. The opportunity to influence the union through its https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 political process has a- direct bearing on the posi tions the union will take in collective bargaining. Thus the opportunity to participate in the internal union political process is essential if the union is to take some account of all the interests which it is required to represent in collective bargaining. 2. To be meaningful, political freedom within a union must include the right of candidacy for posi tions of leadership. The 1959 legislation, however, does not fully protect this right. If a potential candidate has been kept off the ballot and the election is held, his rights can thereafter be pro tected in a proceeding by the Secretary of Labor.30 But before the election, he may have no Federal rights and may be obligated to proceed in State courts under varying State law which will protect only his claims under the union constitution and bylaws.31 Such a weak guarantee of the right of candidacy may be partially cured by judicial con struction of the LMRDA. But the full cure, giving the Secretary of Labor power to supervise elections before the balloting to assure that all properly nominated candidates are on the ballot, requires congressional action. 3. Union internal disciplinary procedures have not always been impartial.32 The legislation does little to promote impartial tribunals to determine disputes between the individual member and the union, and since the economic rights which the union may affect are so important, they deserve such a safeguard. A significant number of cases suggest that the majority within a union, exercis ing their political freedom, may decide to sub ordinate the job security of the minority or of 25 For a more extended discussion of the analysis, see m y article, “ The Legal Protection Against Exclusion From Union Activities,” Ohio State Laio Journal, Winter 1961, pp. 21-38. 281 have discussed many of the following problems in detail in an article entitled “ The Worker and Three Phases of Unionism: Administrative and Judicial Control of the Worker-Union Relationship,” which will be pub lished in a 1963 issue of the Michigan Law Review. 27 See Summers, “Legal Limitations on Union Discipline,” op. cit., and “ The Law of Union Discipline: What the Courts Do in Fact,” Yale Law Journal, December 1960, pp. 175-224. 28 Madden v. Atkins, 4 N.Y. 2d 283,151 N.E.2d 73 (1958). 28 Sec. 101(a)(1) and (2) of the LM RDA affords each member the right of freedom of speech and assembly in connection with union matters, the right to discuss union business at union meetings, and the right to nominate and vote for candidates for union office. 28 See LM RDA, Title IV. 8i See Mamula v. United Steelworkers, 304 F. 2d 108 (C.A. 3,1962). But see Colpo v. Highway Truck Drivers Local 107, International Brotherhood of Team sters, 305 F. 2d 362 (C.A. 3, 1922). See also Clyde W. Summers, “Preemp tion and the Labor Reform Act—Dual Rights and Remedies,” Ohio State Law Journal, Winter 1961, pp. 119, 135-140. 32 Summers, “ Legal Limitations on Union Discipline,” op. cit., and Leo Bromwich, Union Constitutions (New York, Fund for the Republic, 1959). THE INDIVIDUAL AND THE UNION the disenfranchised.33 What is needed is an appro priate mix between the flexibility inherent in the principle of majority rule and the stability which impartial adjudication can afford to basic claims to worker security. Some unions—the Automobile Workers and the Upholsterers—have provided for impartial internal union adjudication by public review boards,34 but the LMRDA fails to encourage such provisions. To be sure, the legislation requires a “full and fair hearing” for the employee and may require him to exhaust within the organization “reasonable hearing procedures (but not to exceed a 4-month lapse of time).” 35 However, it does not require the courts to defer to union decisions in accordance with the impartiality of the tribunal. This lapse can be partly cured by interpretation which per mits the courts to give finality to facts found by an impartial union tribunal. Encouragement of impartial internal review re mains a major task for the coming decade. Absent such review, the courts must play a significant role in shaping a great number of specific decisions concerning internal union affairs. Once the 4 months have expired, the member is entitled to judicial review of union discipline on three grounds: (1) It violated the statutory due process rights of notice, opportunity to prepare a defense, and full and fair hearing; (2) it violated the rights to engage in political activity within the union guaranteed by the LMRDA; and (3) it violated the rights under the constitution and bylaws of the union. External Political Activities. Unions seek worker security not only through collective bargaining but also through active participation in national and local politics. The future, with its problems of reorganization of the productive process which 83 See, for example, Hartley v. Brotherhood of Railway Clerks, 283 Mich. 201, 277 N.W . 885 (1938); Britt v. Trailmobile, cited in footnote 18; Donovan v. Traverse, 285 Mass. 167, 188 N .E . 705 (1934). 34 See Jack Stieber, Walter E. Oberer, and Michael Harrington, Democracy and Public Review: A n Analysis of the TJAW Public Review Board (Santa Barbara, Calif., Center for the Study of Democratic Institutions, 1960); Walter E. Oberer, “Voluntary Impartial Review of Labor: Some Reflec tions,” Michigan Law Review, November 1959, pp. 55-88; Jerome H . Brooks, “ Im partial Public Review of Internal Union Disputes: Experiment in Democratic Self-Discipline,” Ohio State Law Journal, Winter 1961, pp. 64-96. 33 Sec. 101(a)(4) and (5) of the LM RDA. 88 De Mille v. American Federation of Radio Artists, 17 A.C.A. 480, 175 P.2d 851 (1946). 87 Pfoh v. Whitney, 43 Ohio L. Abs. 417, 62 N.E.2d 744 (1945). 88 Morgan v. Local 1150, United Electrical Workers, 331 111. App. 21, 72 N.E.2d 59 (1946). 38 Mitchell v. International Association of Machinists, 195 Cal. App. 2d 796 16 Cal. R ptr. 813 (1961). 40 International Association of Machinists v. Street, 367 U.S. 740 (1961). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 663 transcend the capacities of collective bargaining, probably holds an increased emphasis on union political action designed to improve legislation relating to worker security. When a member disagrees with the political position of the union, the resulting tension may become acute. Under the older conception of the union as a voluntary association, the member was bound by the majority decision. Thus, the expulsion of Cecil B. De Mille from the American Federation of Radio Artists because of his refusal to pay a $1 assessment to be used to oppose “right-to-work” legislation was upheld on the principle of majority rule in 1946.36 Similarly, a union officer who supported Wendell Wilkie for president, while the union supported Franklin D. Roosevelt, was successfully expelled,37 as was an officer of the United Electrical Workers who handed out Republican literature in Illinois in 1944 after his union decided to support the Democratic Party.38 Today, this line of decisions has been sub stantially overruled. A union member may not be penalized now because he opposes the union position and may not be compelled to financially support political causes with which he disagrees. A California court has upset the expulsion of two members of the Machinists union who sup ported a “right-to-work” law while the union was strenuously—and successfully—opposing its adoption.39 In 1961, the U.S. Supreme Court, in a rather technical decision under the Railway Labor Act, held that dues paid under union-shop agreements cannot, over timely objection of the member, be used for political purposes.40 This change in judicial attitude toward the relation of the member and the union in the political context provides another example of increasing judicial awareness that the voluntary association concept cannot be applied to the modern union and that the public nature of union’s power requires that it act responsibly. These decisions may ultimately prove of great benefit to unions. From time to time, Congress has attempted to regulate union political ex penditures and activi ties, and the Supreme Court has hesitated to invalidate such regulations as an interference with political freedom of the member ship, in part because of the possibility that some members may have been coerced into supporting the union’s political position. Now that it is 664 clear that the dissenter can prevent this use of his dues, the political expenditures of the union will probably be viewed as voluntary. Union political action becomes the expression of the right of association for political purposes of the membership and is protected under the First Amendment from congressional regulation.41 Thus, union efforts to enhance worker security through the political process will be protected against restrictive legislation by the very decision which restricts the right of the union to impose political restraints on its members. Collective Bargaining Process. Union-worker re lations in collective bargaining are central to any consideration of worker security in a society which is constantly reorganizing the productive processes upon which such security is based. The topic deserves the separate treatment which Professor Aaron gives it in this symposium. Within the framework of this paper, however, a few observa tions are in order. The transition of the union from a purely vol untary association to an institution clothed with public power and responsibility is apparent in this area. In the early period, the internal affairs, including collective bargaining activities, of unions were subject to only minimal regulation. Union decisions in collective bargaining which abrogated worker security in employment would be reviewed by the court only to determine if they were arbitrary from the viewpoint of the union as a whole.42 If they met the interests of the group, then the sacrifice of individual claims was not grounds for legal complaint. This principle, that the union could subordinate the interest of the individual in the interest of the group, was applied vigorously in the Wagner Act period. It afforded the union freedom to bargain collectively.43 Even in the present period, pro tection of individual rights in collective bargaining lags far behind such protection in other areas. Only recently, for example, have the courts begun to protect seniority rights to some extent. The union now must provide more than a political justification for their destruction.44 The right of the union in the administration of the labor agree ment to sign away employee rights under col lective contracts has not been effectively limited by the courts.45 However, in late 1962, in Miranda Fuel Co. and Lopuch,iQ the NLRB https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 stepped into the situation by holding that the National Labor Relations Act incorporates the duty of fair representation and that the Board may require the union to honor and protect worker rights under collective contracts. This protection for employee expectations based on the collective contract has not been afforded by the courts. The irony of the entire development is now clear. In order to maintain the dignity and improve the economic position of the worker, unions were given extensive powers by statute. Since these powers could be turned against the employees, they have been restricted by law in connection with internal political affairs and exter nal political action. However, where worker security is most directly involved—in the collec tive bargaining process itself-—the power of the union to subordinate individual claims has not yet been limited. Yet it was to protect worker security that the power was initially recognized. The Future of Individual-Union Relations Major legislation altering the basic pattern of union-employer-employee relationships seems un likely for the next decade except as regards ‘'emer gency disputes.’’ On this assumption, it is possible to analyze probable courses of development in the two areas which have been examined. In organizational activities, the basic statutory pattern has been established by Congress. The scope of union freedom to use economic pressures to organize will depend upon the interpretation of that pattern by the NLRB, unless the courts intervene. The present Board seems prepared to allow the union to assert such pressures unless they are clearly precluded by the LMRA. Thus it will remain possible to employ carefully planned economic pressures to further union organization. However, pressures for unionization which involve strikes or picketing directed at employees of any employer will be prohibited, as will any picketing of secondary employers. The result is that expanding unionization by direct economic action 41 See John F. Lane, “Analysis of the Federal Law Governing Political Expenditures by Labor Unions,” Labor Law Journal, October 1958, pp. 725-744; United States v. United Automobile Workers, 352 U.S. 567 (1957). « gee K urt L. Hanslowe, “individual Rights in Collective Labor Rela tions,” Cornell Law Quarterly, Fall 1959, pp. 25-55. 43 See Britt v. Trailmobile Co., cited in footnote 18. 44 Ferro v. Railway Express Agency, 296 F. 2d 847 (C.A. 2,1961); O’Donnell v. Pabst Brewing Co., 12 Wis. 2d 491, 107 N.W. 2d 484 (1961). 43 Union News Co. v. Hildreth, 295 F. 2d 658 (C.A. 6, 1961). 43140 NLRB No. 7 (Dec. 19, 1962). THE INDIVIDUAL AND THE UNION will succeed only to the extent that the direct or secondary consumer refuses to deal with nonunion firms. This suggests that in a region where unionism is strong, it may expand its organization power, but where it is weak, its only hope to exploit a favorably inclined consumer group is to use secondary pressure. For example, picketing which is permitted by the act around a manufac turing plant in a nonunion town probably would not pressure the employees to unionize. But if the product of the plant is distributed in urban areas which are unionized, the pressure on the retailer from customer refusals to purchase may ultimately work its way back to the plant. The key question, as far as union economic pressures to unionize are concerned, will be the interpreta tion of the provisions in the LMRDA of 1959 which permit handbilling of secondary employers who are distributing products of a supplier with whom a union has a labor dispute. The NLRB has broadly construed this clause.47 The Court of Appeals for the Ninth Circuit has narrowly construed it.48 This division of opinion will ultimately reach the Supreme Court, which is apt to defer to a well-reasoned NLRB policy decision. Thus, as long as the Board maintains its present orientation toward the problem, union economic pressures may be applied in the manner indicated. This Board position is likely to continue until there has been a change in national political administration followed by appointments of Board members who are differently oriented. The present NLRB is prone to interpret ambiguities as favorably as honorably may be done in support of union organizational activities. This I believe is proper, because the mission of the Board, within limits established by Congress, remains the promo tion of the collective bargaining process. Wherever the union is established, the processes of collective bargaining will become subject to two rules which enhance the position of the individual and are only now beginning to emerge in enforcible form through Federal law. The first is that all those represented by the union are entitled to participate equally in the collective bargaining activities of the union. Congress took one step in this direction when it eliminated 47 Upholsterers Frame & Bedding Workers Twin City Local 61, Upholsterers Union and Minneapolis House Furnishing Co., 132 NLRB 40 (1961); Local llfik, Retail Clerks and Jay Jacobs Downtown, Inc., 140 NLRB No. 127 (1963). « Servette, Inc. v. N L R B , 51 LRRM 2621 (C.A. 9, Nov. 26, 1962). 49 See m y article, “Legal Protection for Critical Job Interests: Union Management Authority Versus Employee Autonomy,” Rutgers Law Review, Summer 1959, pp. 631-665. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 665 “second-class” union membership. Congress ap pears to be politically immobilized, however, as far as any further steps because of the racial aspects of the problem. Additional steps will come from either the administrative agencies or from the judiciary. The final decision will probably involve the following reasoning: Union decisions in collective bargaining are supposed to reflect a net judgment on the interests of all the represented employees. Only by allowing all represented to participate can we assure that the judgment finally made will reflect a politically realistic balance of these interests. Thus the union cannot fairly represent all employees unless it allows them all to participate in such activities. To the extent that it denies such participation, without reasonable grounds, it is subject to either administrative or judicial restraint to compel it to do so. The second rule will require the union to protect some individual claims to critical job interests, as in the negotiation and administration of the collective bargaining agreement.49 Here genuine worker security may begin to develop. The right not to be discharged except for proven just cause and to retain seniority from contract to contract, unless proven necessity intervenes, will emerge as protected individual claims. Enforce ment of these claims may be channeled through the NLRB if its decision in the Mirand case is upheld. The emergence of this rule is the most specula tive aspect of the prediction, for it will require that union and management freedom to negotiate or administer the collective bargaining agreement be restrained in the interest of the individual. Neither union nor management desires such re straints. Yet both could learn to live with them. Collective bargaining is tough enough to adjust to a requirement that the union protect seniority rights in negotiation of new contracts and honor contract rights in the administration of existing agreements. Whether the law will protect individual claims is part of a broader question concerning the na ture of individual freedom in organized society. Freedom only against government—the classic definition of civil liberties—is inadequate because the power to harm or help, formerly held by the State, is distributed among influential groups, in cluding labor and management. Worker security will be meaningful for the individual only if those who exercise group power are required to honor it. The Individual’s Legal Rights as an Employee That many of the worker's rights with respect to his employ ment are uncertain, inadequate, and often illusory reflects the lack of a consensus as to what our labor relations law should do. Benjamin Aaron* T he l a s t h a l f c e n t u r y has witnessed dramatic changes in the relationships between the employee, his employer, and his union. Fifty years ago, the law governing terms and conditions of employ ment was still dominated by what Roscoe Pound characterized as “an uncompromising insistence upon individual interests and individual prop erty.” 1 The law’s protection of individual interests and property, however, seldom extended to employees. By rigorously upholding the prin ciple of freedom of contract, the courts aided employers in their efforts to combat unionism through such devices as the “yellow-dog” contract2 and struck down legislation designed to regulate wages, hours, and working conditions.3 The New Deal brought in its wake a profound shift in emphasis from individual to collective rights. Recognizing the inequality of bargaining power between the individual employee and his corporate employer, the framers of the National Labor Relations Act (NLRA) sought to redress the imbalance by fostering and protecting the right of employees to organize and to bargain through representatives of their own choosing. Judicial acceptance of a new philosophy of the role of the Federal Government, permitting it to exercise its taxing and regulatory powers to a far greater extent than ever before, resulted in a large body of protective legislation for the Nation’s wage earners. These and other fundamental social changes substantially enhanced the strength of organized labor. In recent years, however, it has become in creasingly apparent that individual workers re quire protection against the arbitrary exercise of 666 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis power by unions as well as by employers. Simi larly, it is clear that the enforcement of individual rights frequently runs counter to the collective interests of labor and management. The accom modation of individual rights and collective inter ests must thus be viewed as a critical and growing problem. Collective Agreements and Individual Contracts Today, there are approximately 17.5 million workers covered by collective bargaining agree ments in the United States. These collective agreements neither create the employer-employee relationship nor deal exclusively with it, but they do establish a set of rules which create rights and impose obligations applicable to the employer, the union, and the employee. Originally, American courts refused to recognize a collective agreement as a contract which could be enforced by unions or employers against each other. The terms of these agreements, however, were sometimes, under a “usage” theory, incor porated into individual contracts of employment and enforcible as such. Some courts took the view that collective agreements, though not legally binding as contracts, created moral obliga tions which might provide the basis for equitable relief under certain circumstances. In the next phase of development, the courts, while continuing to hold collective agreements unenforcible by or against unions, gave effect to ♦Professor of Law, University of California (Los Angeles). 1 The Spirit of the Common Law (Boston, Marshall Jones Co., 1921), p. 37. 2 Adair v. United States, 208 U.S. 161 (1908); Coppage v. Kansas, 236 U.S. 1 (1915). 3For example, Lochner v. New York, 198 U.S. 45 (1905); Adkins v. Children’s Hospital, 261 U.S. 525 (1923). THE INDIVIDUAL’S LEGAL RIGHTS AS AN EMPLOYEE them in actions between individual employees and employers. One rationale for this was that those who negotiated the collective agreement were mere agents of the individual members of the union and employers’ group. Another was that the collective agreement was itself a valid and enforcible “thirdparty beneficiary” contract made by the employer and the union expressly for the benefit of the individual employees. Statutory Agreements. Each of the foregoing theories was patently inadequate to explain or ac commodate the variety of legal relationships which the collective agreement creates. In time, the majority of American courts came to regard such an agreement as a binding and enforcible contract between the employer and the union. The enforcibility of collective bargaining agreements has also been established by statute. At the Federal level, section 301(a) of the Labor Management Relations Act (LM.RA) provides: Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce . . . or between any such labor or ganizations, may be brought in any [Federal] district court . . . having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.4 These developments partially clarified the legal status of collective agreements, but they left un resolved a number of difficult questions concerning the rights of individual employees under such agreements. Specifically, they cast no light on the right of the individual to enforce claims arising under the agreement which are opposed to the interests of the union representing him or which run counter to the understandings between the union and the employer as to how the collective agreement should be administered. The advent of the “statutory contract” in troduced a new and far-reaching concept into the law of collective agreements and individual em ployment rights. Thus, the National Labor Relations Act provides that collective agreements 4 Some States have similar statutes. In California, for example, a 1941 amendment to the Labor Code provided: “ Any collective bargaining agree ment between an employer and a labor organization shall be enforcible at law or in equity, and a breach of such collective bargaining agreement by any party thereto shall be subject to the same remedies, including injunctive relief, as are available on other contracts in the courts of this State.” 5 J. I. Case Co. v. N L R B , 321 U.S. 332, at 337 (1944). Ibid, at 338. * Ibid. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 667 between an employer and the duly authorized bargaining representative of his employees “in respect to rates of pay, wages, hours of employ ment, or other conditions of employment,” shall apply to all employees (whether union members or not) within the appropriate bargaining unit. However, the collective agreement does not, of itself, subject the individual employment relation ships within the bargaining unit to its terms. This result is accomplished by statutory command, as interpreted by courts and administrative agencies, which remains constant even though the provisions of collective agreements vary widely and change frequently. Although the statutory collective agreement has not eliminated individual contracts of employ ment, it has reduced them to little more than hiring contracts. The U.S. Supreme Court held long ago that otherwise valid individual employ ment contracts, . . . no matter what the circumstances that justify their execution or what their terms, may not be availed of to defeat or delay the procedures of the National Labor Relations Act looking to collective bargaining, nor to exclude the contracting employee from a duly ascertained bargaining unit; nor may they be used to forestall bargain ing or to limit or condition the terms of the collective agreement.5 Similarly, “the individual contract cannot be effective as a waiver of any benefit to which the employee otherwise would be entitled under the trade agreement.” 6 The statutory policy, as construed and applied by the Court, thus abandons the earlier philosophy that legislative interference with individual free dom of contract is unconstitutional. Indeed, the Court has expressly rejected the argument that individual contracts which provide more favorable terms than the applicable collective agreement should be permitted to survive or surmount the latter. In respect to that contention it has said: “The practice and philosophy of collective bar gaining looks with suspicion on such individual advantages.” 7 Although the employer and his employees are free to enter into individual con tracts which are not inconsistent with the collective agreement or which deal with matters not included within the statutory scope of collective bargaining, the mandatory subjects of collective bargaining have been increased so greatly as to make this possibility virtually meaningless. 668 In the absence of a collective agreement, the terms of employment are determined by agree ment between the employer and the individual employees. Owing to the limited bargaining power of unorganized employees, the terms are usually determined unilaterally by the employer. Formal individual contracts are rare; most are held by professional or technical personnel. Other Statutory Protection. Protection of the employees’ interests is provided to a limited extent, however, by Federal and State statutes. The Railway Labor Act, the National Labor Relations Act, and various State labor relations acts forbid employers from exacting individual agreements in derogation of the employees’ rights to organize, bargain collectively through repre sentatives of their own choosing, and engage in related concerted activities. Other Federal and State laws establish com pulsory standards and employee benefit rights relating to minimum wages; maximum hours; old-age, survivors, and disability insurance; un employment insurance; workmen’s compensation; and the like. Their applicability depends on the existence of an employment relation, as variously defined in the respective statutes, and not upon the existence of a collective agreement. Some rights and benefits under this legislation, like the protective provisions of the Fair Labor Standards Act, are nonwaivable; they cannot be bargained away or compromised either by the individual employee or by a union acting in his behalf. The latter group of standards and benefits, sometimes referred to collectively as “ social legislation,” are beyond the scope of this article and are mentioned only in passing.8 However, it is important to remember that large numbers of employees most in need of protection, of which agricultural workers constitute the largest single group, are almost totally excluded from the coverage of much Federal and State social legislation. Finally, even those workers who are covered must ordi narily enforce contested claims by individual suits before administrative tribunals and courts. The handicaps of insufficient information about their rights under the law, inability to obtain adequate representation, and lack of financial resources to sustain themselves for the long periods frequently required to process their cases combine to force https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 many of these individual employees to abandon their claims or to accept inequitable compromises. Administrative Enforcement of Rights The National Labor Relations Act. The NLRA guarantees not only the right of employees “to self-organization . . . and to bargain collec tively through representatives of their own choosing,” but also the right “to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” At the same time, it reserves to employees the right “to refrain from any or all of such activities,” except to the extent required by a valid union security provision in a collective bargaining agreement. Violation of such rights by either unions or employers is an unfair labor practice which is subject to cease-and-desist and other remedial orders by the National Labor Relations Board (NLRB). The Board’s orders are, in turn, subject to judicial review. Section 9(a) of the NLRA, after setting forth the exclusive representation rights of the duly authorized bargaining representative, adds the following proviso: P ro v id e d , That any individual employee or a group of employees shall have the right at any time to present grievances to their employer and to have such grievances adjusted, without the intervention of the bargaining representative, as long as the adjustment is not inconsistent with the terms of a collective bargaining contract or agree ment then in effect: P r o v id e d fu rth e r, That the bargaining representative has been given opportunity to be present at such adjustment. This proviso has created considerable confusion, chiefly because of the difficulty involved in dis tinguishing between collective bargaining (the exclusive function of the certified or designated union) and grievance handling. Thus, the em ployer is under no obligation to process a grievance presented by an individual employee when it concerns a matter within the scope of the union’s exclusive bargaining authority.9 The employer’s obligation in this regard is purely a negative one; he may not discriminate against an employee who presents a grievance 8 For a discussion of this legislation, see Philip Booth’s article, pp. 622-629 of this issue. 9 Cowles Publishing Co. and Howard, 106 NLRB 801 (1953). THE INDIVIDUAL’S LEGAL RIGHTS AS AN EMPLOYEE either independently or through his union. By the same token, he may not insist on a contract clause excluding the union representative from the first step of the grievance procedure, which means that in most cases a union representative is present. Finally, the employer’s settlement of an employee’s grievance is valid only if a union representative has been given the opportunity to be present and if the settlement is consistent with the terms of the collective agreement. Yet the legislative history and the express language of the proviso make it clear that it was intended to delineate relative rights of the union and of the individual employee to enforce the collective agreement. One noted authority in terprets it as establishing the following principles: 1. The individual employee has rights under the collec tive agreement, the enforcement of which are not subject to the union’s exclusive control. 2. The union and the employer cannot block the en forcement of these rights by agreeing between themselves that those rights can be compromised or ignored without the individual employee’s consent or authorization. 3. The individual rights are limited by the substantive terms of the collective agreement. 4. The union has an interest in all terms of the collective agreement and a right to insist on the enforcement of the agreement.10 The Board’s remedial orders are predicated upon a finding that one or both of the parties have committed an unfair labor practice. Recently, the NLRB held that the act gives employees the right to be free from “unfair or irrelevant or invidious treatment by their bargaining agent.” 11 Such treatment by a union of any employee it is obligated to represent constitutes an unlawful restraint on the exercise of his rights. Moreover, although an employer’s delegation to the union of authority to determine such a personal right as a worker’s seniority is not in itself a violation of the act, the employer shares the responsibility if the union exercises the delegation in an unlaw ful manner. From time to time, the Board has also threat ened to rescind the exclusive bargaining certi fication of any union which fails to represent all 10 Clyde W. Summers, ’’Individual Eights In Collective Agreements and Arbitration,” New York University Law Review, May 1962, pp. 384-385. 11 Miranda Fuel Co. and Lopuch, 140 NLRB No. 7 (Dec. 19, 1962). 12 A . 0. Smith Corp. and Local 311, Office Employes, 119 NLRB 621 (1957). 13 Spielberg Manufacturing Co. and Greenberg, 112 NLRB 1080 (1955). 14 Raytheon Co. and Reikard, 140 NLRB No. 84 (Jan. 28,1963). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 669 employees in the bargaining unit. In one case, it actually did rescind the certification for 6 months.12 Inasmuch as the rights protected by the NLRA exist independently of any collective agreement and apply to both organized and unorganized employees, an individual worker is free to seek his statutory remedy for alleged violation of such rights without exhausting grievance and arbitration procedures. Moreover, an arbitration award purporting to dispose of an employee’s grievance is not binding upon the Board if the complaint involves protected activity under the act. As a matter of policy, however, the Board refuses to accept unfair labor practice charges and recognizes an arbitration award adjudicating the same subject matter if all parties agreed to be bound by and participated in the arbitration, if the proceedings were fair and regular, and if the award was not contrary to the NLRA.13 Cases presenting the greatest difficulty are those in which there is a conflict between rules estab lished by the collective agreement and rights created by the statute. The Board has indicated that it will not be bound by an arbitration award which enforces provisions of a collective agreement in derogation of statutory rights.14 The public nature of rights protected under the NLRA is emphasized by the circumstances of the violation and methods of enforcement. The Board will not entertain unfair labor practice charges based on violations of collective agree ments which do not involve alleged violations of the act. Moreover, the act creates no private remedies; only the Board can seek enforcement of its orders, and in case of any conflict between such orders and private remedial rights, the latter must give way. The Railway Labor Act. Like the NLRA, the Railway Labor Act (RLA) guarantees the right of employees to organize and bargain collectively and also establishes the principle of exclusive representation by the majority union. Unlike the NLRA, however, the RLA specifies only criminal penalties for willful violation of employees’ statutory rights by employers. The most relevant difference between the two statutes, however, is that the RLA provides for the submission of all unresolved grievances to 670 the National Railroad Adjustment Board (NRAB), an administrative tribunal composed of equal numbers of labor and management representatives. The decisions of the NRAB are enforcible in the Federal courts. Grievances may be submitted to the Board only after they have been “ handled in the usual manner” at the local level. Prior to the Supreme Court’s decision in Elgin, Joliet cfc Eastern Ry. v. Burley,15 the railroad unions argued that the individual employee had no right to process his own grievance, on the theory that their certifications as exclusive bargaining representatives extended to the settlement of grievances as well as to the negotiation of collective agreements. In that case, however, the Court drew a distinction between “ disputes concerning the making of collective agreements” and “ dis putes over grievances,” characterizing the former as those which “look to the acquisition of rights for the future” and the latter as those which relate “either to the meaning or proper application of a particular provision [of an existing agreement] with reference to a specific situation or to an omitted case.” 16 A majority of the Court felt that the union’s exclusive authority to make or change collective agreements did not extend to “ changing them with retroactive effects upon ac crued rights or claims.” 17 Upon rehearing, the Court, although reaffirming its decision, modified its earlier statements by conceding that the union’s authority to settle individual grievance claims might be inferred from the language of the union constitution. Most, if not all, of the railroad brotherhood constitutions now include a provision giving the union officers more or less complete discretion to settle grievances. Present rules governing the processing of grievances under the RLA are similar to those under the NLRA. The individual employee may file his grievance independently, but must follow the regular steps of the grievance procedure. The union is entitled to receive notice and to participate in the discussion and must concur in the settle ment. After the individual has exhausted the grievance procedure in seeking to enforce his claim, he may take it to the NRAB. Indeed, he has no alterna tive, except in the case of an outright discharge, in which event he can treat his termination as final and sue for damages.18 In practice, however, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 the right of an individual to present his own case to the Board, over the objections of the bargaining representative, is more apparent than real. There is ample evidence that the usual fate of such cases is to be put at the foot of the docket, not to be docketed at all, or to be summarily rejected.19 This rather startling inequity is possible because the labor members on the NRAB are representa tives of the organizations which bargain for most of the employees. Thus, dissident members of the majority union, members of minority unions, or employees who do not choose to join any union or who are otherwise ineligible for member ship are without any representation on the NRAB. Since the Board’s rules do not provide for the breaking of deadlocks over procedural matters by a neutral referee, the employee’s case is not likely to be considered on the merits even if the employer representatives vote to hear it. The Grievance and Arbitration Procedure. The great majority of all collective agreements estab lish a grievance procedure with arbitration as its terminal point. Inasmuch as the contract is between the employer and the union, the latter exercises almost complete control over the proc essing of individual employee grievances based on alleged violations of the contract terms, as noted earlier. A number of situations thus arise in which individual interests are in conflict with those of the union. Perhaps the most frequent instance of such conflict is a seniority grievance in which the union must decide between competing claims of its own constituents. If the employer promotes A and the union supports B’s claim to the job, it will process B’s grievance. In any subsequent arbitration, B will be an active participant, but A usually will not even be officially notified that his promotion has been challenged, and rarely will he be allowed to testify in his own behalf. A few arbitrators cus tomarily insist that A be called as a witness, but most do not, either because they are unwilling to interfere in the presentation of the case or is 325 U.S. 711 (1945), affirmed on rehearing, 327 U.S. 661 (1946). is 325 U.S. 711, at 723. ii Ibid, at 739. is Moore v. Illinois Central R.R., 312 U.S. 630 (1941). 1®See Brotherhood of Railroad Trainmen v. Swan, 214 F.2d 56 (C.A. 6, 1954); “ Comment: Railroad Labor Disputes and the National Railroad Adjust ment Board,” University of Chicago Law Review, Winter 1951, pp. 303-321. THE INDIVIDUAL’S LEGAL RIGHTS AS AN EMPLOYEE because they rely upon the employer to protect A’s interests while defending management’s action. Suppose, however, that A is a union member and B is not; the union may refuse to process B’s grievance. When an individual presents a claim that the union should be compelled to arbitrate his grievance, arbitrators generally refer him to the courts.20 Another problem arises when an individual employee either fears that his bargaining repre sentative will handle his case ineptly or in bad faith, or favors a rival union and wishes it to re present him. He may therefore seek to present the case himself or to retain outside counsel, who frequently is associated with a rival union. If the bargaining representative objects, most arbitrators will deny the employee’s request, although some will seek to work out a procedure agreeable to all concerned. There is not much more the arbitrator can do, for his authority is limited by the terms of the collective agreement, which typically omits any reference to issues of this type. Finally, arbitrators are not inclined to look behind any settlement of a grievance to see whether it has the approval of the grievant, and this information is seldom volunteered by the parties. Therefore, when opposed by the union acting alone or in concert with the employer, the individual employee must usually elect either to drop his claim or seek vindication in the courts. Judicial Enforcement of Rights Review of Administrative Decisions. Under the NLRA, as previously noted, an individual whose rights have been found by the NLRB to have been violated by the union or the employer must rely upon the Board to insure compliance with its remedial order by petitioning a Federal court of '' 20 Robben W. Fleming, “Some Problems of Due Process and Fair Pro cedure in Labor Arbitration,” Stanford Law Review, March 1961, p. 240. 81 See, for example, Brotherhood of Railway Clerks v. Railway Express Agency, 238 F.2d 181 (C.A. 6,1956). 22 See footnote 18. 22 Majors v. Thompson, 235 F.2d 449 (C.A. 5, 1956); Bower v. Eastern A ir Lines, Inc.,214 F.2d623 (C.A. 3,1954). 24 See, for example, Mountain v. National Airlines, 75 So.2d 574 (Fla. Sup. Ct., 1954). 25 See Summers, op. cit., pp. 398-399. 28 See, for example, “Report of the Committee on Improvement of Admin istration of Union-Employer Contracts,” American Bar Association, Section of Labor Relations Law, 1954 Proceedings, pp. 33-71. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 671 appeals for a decree of enforcement. In such a proceeding, the Board’s findings of fact are con clusive if supported by substantial evidence on the record considered as a whole. The situation under the RLA is quite different. Since the NRAB does not obtain enforcement of its awards, an individual or his union must seek compliance in a private action. The scope of judicial review is much broader than under the NLRA. Although the findings and order of the NRAB are considered prima facie evidence of the facts therein stated, the court may review the merits of the dispute and set aside the award if it finds that the employer was correct in its sub stantive contentions.21 As previously noted, the employee may side step NRAB procedures in wrongful discharge cases, for which a cause of action exists under State law. If the grievant seeks reinstatement, he must apply to the NRAB; but if he wants damages, he may bring a legal action without taking his case to the Board.22 However, the employee has only an election of remedies; if he proceeds before the NRAB, he may not there after litigate the issue of his wrongful discharge under State law.23 Moreover, the law in many States requires the employee to exhaust whatever remedies exist under a contract grievance pro cedure before seeking to recover damages for a wrongful discharge.24 Enforcement Under Collective Agreements. The courts have not been inclined to aid an employee who seeks to prevent his authorized bargaining representative from handling his grievance when the union has indicated a willingness to do so. Most authorities support this policy on the ground that neither the NLRA nor the RLA guarantees employees more than the rights to participate in and reject any settlements made without their consent.25 A more serious problem arises when the union refuses to process an employee’s grievance. Commentators disagree over what remedies, if any, should be available to the employee under such circumstances. Some argue that inasmuch as the union’s principal reason for being is to im prove the economic and social position of its members, the individual member should have a vested right to use the grievance and arbitration provisions of the applicable collective agreement.26 672 Others believe that the union must be given a free hand to evaluate the individual’s claim in terms of the collective interest and therefore must be allowed to refuse to process the grievance, so long as it acts in good faith.27 A third position is that the individual employee should be per mitted to compel the union to process meritorious grievances involving only the “critical job in terests” of discharge, compensation, and seniority.28 The courts appear to be in similar disagree ment. In Parker v. Borock,29 the union refused to carry the grievance of a discharged employee to arbitration. The employee then asked a Federal district court to compel the employer to arbitrate, but his motion was denied on the ground that enforcement of the arbitration clause was “purely a union right.” 30 The employee then sued the employer for damages for discharge in the New York Court of Appeals, which ruled against the plaintiff. The court held that although the employee had an enforcible right, he had entrusted it to the union; therefore, if the union improperly failed to preserve that right, the employee’s sole recourse was to sue the union for breach of its fiduciary duty. Even the individual’s remedy against the union may be illusory. In Saint v. Pope?1 another New York case, three employees sued their union for violation of its fiduciary duty in failing to process their grievances for wrongful layoff. Their claims were denied on the ground that the union, being an unincorporated association, would be liable only if the cause of action were provable against every member of the association. Some other State courts view the problem differently. In Wisconsin, for example, the courts have extended broad protection to individual rights. Pattenge v. Wagner Iron Works32 in volved a claim for vacation pay for which the individual plaintiffs had become eligible prior to their discharge for participation in a strike. Sub sequently they were taken back as new employees. The strike grew out of their shift in allegiance from an AFL to a CIO union, and the penalty imposed on the strikers had been approved by the AFL union, which retained exclusive bargain ing rights. Under these circumstances, the court held that the employees need not process their claim as a grievance, even though the collective agreement provided that the grievance and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 arbitration procedure “ shall be the sole means of disposing of grievances.” The reasoning was that an individual’s contract right need not be placed “ at the mercy of an unfriendly union.” 33 In Clark v. Hein-Werner Corp.,u the issue con cerned seniority. A group of supervisors who had been promoted out of the bargaining unit were subsequently returned to it, causing other employees to be laid off. The employer contended that the supervisors had continued to accumulate seniority while they were outside the bargaining unit, but the union took the opposite view and filed a grievance on behalf of those employees who had been laid off. The former supervisors were not formally notified of the arbitration hear ing and none attended. Following a ruling by the arbitrator upholding the union’s position, the former supervisors moved to vacate the award. A judgment in their favor was affirmed by the Wisconsin Supreme Court, which held in part: . . . where the interests of two groups of employees are diametrically opposed to each other and the union espouses the cause of one in the arbitration, it follows as a matter of law that there has been no fair representation of the other group. This is true even though, in choosing the cause . . . to espouse, the union acts completely ob jectively and with the best of motives. The old adage, that one cannot serve two masters, is particularly applicable to such a situation.35 In probably a majority of cases, however, the courts have refused to compel arbitration of an individual employee’s grievance which the union has declined to process. Their decisions have been based on two principal grounds. First, arbitration is a right created by the collective agreement, not by the statute; and grievance and arbitration provisions in most collective agreements specify that only the union may demand arbitration. Second, as explained by one court, The philosophy of the union in retaining control over disputes and of the company in requiring the same is sound. A contrary procedure which would allow each individual 27 See, for example, Archibald Cox, “ Rights Under a Labor Agreement,” Harvard. Law Review, February 1956, pp. 601-657. 28 Alfred W. Blumrosen, “ Legal Protection for Critical Job Interests: Union-Management Activity Versus Employee Autonomy,” Rutgers Law Review, Summer 1959, pp. 631-665. 22 5 N.Y.2d 156, 156 N.E.2d 297, 182 N.Y.S.2d 577 (1959). s» United States v. Voges, 124 F.Supp. 543, at 546 (E.D., N.Y. 1954). 3i 12 App. Div. 2d 168, 211 N.Y.S.2d 9 (1961). 82 275 Wis. 495, 82 N.W.2d 172 (1957), 33 275 Wis. at 500, 82 N.W.2d at 174. 3i 8 Wis.2d 264, 99 N.W.2d 132 (1959), rehearing denied, 8 Wis.2d 277, 100 N.W . 2d 317 (1960). ss 8 Wis.2d 264, at 272, 99 N.W.2d 132, at 137. THE INDIVIDUAL’S LEGAL RIGHTS AS AN EMPLOYEE employee to overrule and supersede the governing body of a union would create a condition of disorder and insta bility which would be disastrous to labor as well as to industry. . . . 36 The question whether a union has standing under section 301(a) of the Taft-Hartley Act to sue an employer on behalf of individual employees for damages arising from his alleged violation of the collective agreement has at last been resolved. In 1955 the Supreme Court, by a divided vote, held that section 301(a) did not give Federal courts jurisdiction over such suits because the rights sought to be enforced were “peculiar in the individual benefit which is their subject matter,” were “uniquely personal,” and arose “from separate hiring contracts between the employer and each employee.” 37 Kecently, however, the Court has held that the “concept that all suits to vindicate individual employee rights arising from a collective bargaining contract should be ex cluded from coverage of sec. 301 has . . . not survived.” 38 It seems clear now that such suits may be brought by either the individuals directly involved or the union. Conclusion The foregoing review of the legal rights of the individual relating to terms and conditions of employment is not complete (for example, the workers’ rights relating to strikes has not been 38 Bianculli v. Brooklyn Union Gas Co., 14 M ise. 2d 297, at 299, 115 N .Y .S . 2d 715, at 718 (Sup. C t. 1952). 17 Association of Westinghouse Salaried Employees v. Westinghouse Electric Corp., 348 U .S . 437 (1955). 38 Smith v. Evening News Association, 83 Su p. C t. 267, at 270 (D ec. 10, 1962). 686133—o; -5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 673 touched upon); yet it is sufficient to demonstrate how uncertain, inadequate, and often illusory these rights are. In the area of social legislation, the principal needs are broader statutory coverage and better administration. Progress toward both of these objectives is slow, but the outlook is moderately hopeful. In the area of collective bargaining, however, the problems are more serious because there is no real consensus as to how they should be resolved. Collective bargaining is a system of private government. The rulers of that government— employers and unions—frequently demand a greater allegiance to their law, as embodied in the collective agreement which they administer, than they themselves are willing to give to the national labor policy. That policy guarantees certain individual rights, which, at the very least, require fair representation by the union of all employees within the bargaining unit. Yet it is clear that the number of instances in which this requirement is not met justifies popular concern. Solicitude for the individual worker, however, should not cause us to ignore the difficult role which the union must play. Its legitimate objective of maintaining and improving its own institutional position requires it frequently to override the wishes of the one or the few in the interests of the many. These conflicts are un avoidable concomitants of our collective bargain ing system; how to resolve them without destroy ing the rights of either the minority or the majority remains one of the most challenging problems o£ our times. Measures of Workers ’ Wealth E dw ard D . H ollander * which follow describe the effects on family living standards of the great increases in productivity and production during the 1950’s and the institutional and political devel opments for strengthening and safeguarding family welfare and security. The changes in private family expenditures and consuming habits are essentially an extension of the trends toward greater employment security, higher wages, and higher incomes which have been evident for several decades. In one respect, how ever, they may represent a new phase: the period of comparatively high employment, rising incomes, and rising levels of living, almost continuous since World War II, has persisted so long that it appears to have embedded the material improve ments in the standard of living; that is to say, the higher level of living has come to be not only accepted but expected. This expectation, as Mrs. Lamale points out, has built up an intolerance to reduction in the level of living and a resistance to curtailment of consumption. The resistance has been reinforced by long-term credit commitments for consumption of housing and other durables. These developments may have important effects in conditioning consumer demand and raising pro pensities to consume over a wide range of the income scale and at various stages of the economic T h e two articles https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cycle. Mrs. Lamale has shown how relatively high we find the break-even points between family income and expenditures for consumption, espe cially if we consider such outlays as payments on mortgage debt more realistically as consumption than as saving. This evidence of the stabilizing effects of a high consumption economy is consist ent with the resistance to decline of per capita consumer expenditures (in real terms), observed in each postwar recession. The 1950’s witnessed also the expansion of the broad array of public programs for social and economic benefits. Mrs. Merriam’s article docu ments the vast changes in these programs. The social expenditures with which her article deals have increased tenfold since the mid-1930’s and threefold since 1950. Nor has this remarkable expansion been limited to social insurance pro grams, which, even by 1950, were hardly out of their infancy. The principal form of “public consumption,” the public education system, has grown more than tenfold since the mid-1930’s and more than threefold since the end of the 1940’s. The public programs, though they represent politica] rather than individual consuming deci sions, also have their ratchet effects: the great •Vice President, Robert R. Nathan Associates. MEASURES OF WORKER WELFARE increases in resources allocated to these programs over the past couple of decades, far from having satisfied the public demand, have only raised the standards and created demands for still better services. There is today more public agitation for better education, for example, than there was 30 years ago, when the expenditures were less than a tenth as great. And this too has proved to be a demand that resisted the downswings of the cycle. In the case of the social insurances, however, this awakening and unsatisfied demand has not expressed itself with sufficient political force to keep the quality of the programs improving step by step with the advances of the economy. Mrs. Merriam has shown the extent to which both un employment insurance and old-age, survivors, and disability insurance, as well as workmen’s com pensation, have lagged through political neglect. Both the contribution base and the benefit scale have been stunted; a smaller part of individual earnings is insured, or replaced, by benefits today than 10 to 20 years ago. The greatest benefit lag has been for workers with above-average earnings; hence the negotia tion in a number of industries of private pension plans and supplemental unemployment benefits. This trend has been one of the dominant charac teristics of industrial relations in the past decade. Through these private benefits, a large number (but a relatively small fraction) of workers gained protection against the inadequacies of the public programs; but they have thus had less reason to throw their great political weight behind the efforts to improve the public programs. This has in effect created a discrimination against the workers in the less highly organized industries or those with less rapidly rising productivity. The title of this section, “Worker Welfare Since 1950,” emphasizes developments which have affected the labor force, mainly, with less attention to the large numbers of people on the fringes of the labor market, whose participation in the rising https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 675 standards of living has been intermittent and incomplete. In respect to these, the 1950’s left much undone. Mrs. Lamale refers to “sizable numbers of families whose incomes, either tem porarily or permanently, are not sufficient to provide [the] modest standard of living” described in the BLS family budget. She identifies them as “primarily the disabled, the untrained younger heads of households, the elderly retired, and the unemployed.” We would have to add reference to the heavy unemployment among young people; the persistence of miserably low wages in some areas and industries; the effect of chronic depres sion in a disturbingly large number of areas: and the vicious cycle of undereducation, lack of train ing, unemployment, and poverty arising from racial discrimination. Can we admit with com placency that in so productive a society, the disabled, the unemployed, the elderly, the de pendent, and even many able-bodied employed workers cannot claim enough of the benefits of either the private economy or public protection to escape poverty? As the national agenda of the 1950’s was di rected at raising the economic status and securing the social protection of the more fortunately situated majority in the main body of the labor force, the agenda of the 1960’s may be directed at solving the stubborn problems of the less favored and all-too-large minorities, who have been rele gated to the periphery or who are altogether outside the labor force. There are multiplying signs that the dynamics of the economy are operat ing to increase the extent and complexities of the adjustments demanded of the society and its mem bers. The relative shifts from a predominantly goods economy toward a predominantly service economy, the revolutionary changes in technology and production, the continuing displacement of farm population, the increasing educational re quirements for the labor force, will add to the formidable agenda on which worker welfare in the 1960’s will depend. During the 1950’s, greater purchasing power and financial resources enabled city workers’ families to consume and save more and to build these improve ments into their living standards. Workers’ Wealth and Family Living Standards H e l e n H . L am ale * 1776, Adam Smith advanced the then revolu tionary idea that the wealth of a nation is the productive capacity of its labor. As a corollary, he said, “Every man is rich or poor according to the degree in which he can afford to enjoy the necessaries, conveniences, and amusements of human life.” 1 By 1960, the United States and its citizens had achieved unprecedented wealth, thus defined, with substantial increases in real income and expendi tures and many changes in manners and standards of living occurring in the previous decade. The highlights of these changes are shown in table 1. For example, income before taxes of all U.S. families and individuals was $6,845 in 1960, 54 percent over 1950, but with wide variations in levels and rates of change among different types of consumers. In dollars of the same purchasing power, the 1960 average was 26 percent higher than in 1950. Individual wealth is, however, revealed more by the manner of living and by patterns of spend ing and saving than by income per se, and this is becoming increasingly so. The degree in which city-worker families have enjoyed the “necessaries, conveniences, and amusements of human life”— and hence, in a broad sense, economic security— is revealed by the periodic studies of consumer income, expenditures, and saving conducted by the Bureau of Labor Statistics over the past 75 years.2 Information now available from the survey for 1960-61 is limited to summary data for families and single consumers residing in metro politan areas in 1960, but serves to illustrate variations in levels of living among families and In 676 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis communities and changes in spending and saving since 1950.3 Supplemented by other data, the information also supports the inference of marked changes in the way of life and living standards. Increased Purchasing Power In 1960, income after taxes of all families and single consumers in these areas averaged $6,090, 52 percent above 1950. Allowing for the 23percent increase in consumer prices, this repre sented a 23-percent gain in purchasing power (table 2). Among the 15 large cities for which separate price indexes are available, the net in crease in purchasing power ranged from 11 per cent in Pittsburgh and Philadelphia to 44 percent in Boston.4 •Chief, Division of Living Conditions Studies, Bureau of Labor Statistics. i Adam Smith, The Wealth of Nations, Book I, ch. V. * Studies before the mid-1930’s were limited to families of city wage and clerical workers. Subsequent studies covered all types of city consumers. For summaries, see: How American Buying Habits Change (U. S. Department of Labor, 1959); Historical Statistics of the United States, Colonial Times to 1957, A Statistical Abstract Supplement (U.S. Bureau of the Census), Ch. G, pp. 159-187; Study of Consumer Expenditures, Incomes and Savings— Statisti cal Tables, Urban U.S., 1950 (Philadelphia, University of Pennsylvania, Wharton School of Finance and Commerce, 1956-57), Vol. I-X V III; Helen H. Lamale, Methodology of the Survey of Consumer Expenditures in 1950 (Philadelphia, University of Pennsylvania, 1959); and Faith M. Williams, “ Standards and Levels of Living of City-Worker Families,” Monthly Labor Review, September 1956, pp. 1015-1023. » Information for 1960 is based on a summary of data given in the Bureau’s Advance Reports (Series 237) for the 23 metropolitan areas in the Survey of Consumer Expenditures in 1960, supplemented by unpublished data for wage and clerical families of two persons or more. The sample of 23 metro politan areas for 1960 includes 3,642 consumer units and 1,741 wage and clerical families of two persons or more, and is a representative cross-section of all families and single consumers residing in metropolitan areas in that year. The full survey in 1960 covered all urban consumers and in 1961, both urban and rural households. * In the 13 metropolitan areas with populations of 1,250,000 or more, only one-half the sample of consumer units was surveyed in 1960, and the re mainder in 1961, because national averages are to be developed for both years. Some of the variations among the cities may be reduced when the data for the 2 years are combined. WORKERS’ WEALTH AND LIVING STANDARDS The income of wage and clerical worker families in metropolitan areas was higher than that of all consumer units, averaging $6,329, and ranging from $4,927 in Austin, Tex., to $7,106 in Cleveland, Ohio. Except for the self-employed and the salaried professional and managerial workers, employed wage and clerical families might be expected to have higher average incomes than the other groups of consumer units—the unemployed, the retired, and the single consumers. The effect of differences in the occupational structure of com munities on average incomes is quite evident in these data. In Washington, D.C., where more than one-fourth of all consumer units were headed by a salaried professional or managerial worker, the average income of all consumer units was $6,838, compared with $6,016 for wage and clerical families. In most of the other cities, where salaried professional or managerial workers represented only about one-tenth to one-fifth of all consumer units, the average income of wage and clerical families was higher than that of all consumer units. Some of the cities illustrate the important shifts in the industrial and occupational distribution of workers which occurred during the decade. For example, in the Boston area the growth of the electronics industry and employ ment in skilled occupations contributed to the marked gain in real income. Wage and clerical worker families were larger than all consumer units and had more full-time earners. Since the worker-family classification excluded single consumers and families headed by retired persons, heads of wage and clerical families were also younger, on the average, and more had children under age 18, as shown in the following tabulation: A ll Wage and consumer clerical units families (Average) size_____________________________ 3. 1 3. 6 Family Number of full-time earners.____________ Age of head____________________________ Years of school completed by head______ Number of children under 18 years_______ Homeowners, all year___________________ Auto owners, end of year________________ Nonwhite______________________________ With children under 18 years____________ With persons 65 years and over__________ .8 47 1.1 43 11 10 1. 2 1. 4 (Percent) 52 54 72 82 12 13 50 21 63 11 Employed wage and clerical families in most of these cities also showed larger gains than all con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 677 T a b l e 1. T o t a l a n d P e r C a p it a N a t i o n a l I n c o m e a n d P r o d u c t , A v e r a g e F a m il y I n c o m e , a n d P o p u l a t i o n , U n it e d S t a t e s , 1950 a n d 1960 Item Percent change, 1950-60 1960 1950 $503. 4 $349.4 $328. 5 $20.9 $284. 6 $207. 7 $195. 0 $12.6 77 68 68 66 $2,436 $1,756 $1,651 $2,096 $1,523 $1,430 16 15 15 Current dollars: All families and individuals. Nonfarm families______ Farm operator families.. Individuals___________ $6,845 $8,049 $4,518 $3,232 $4,444 $5,232 $3,382 $2,147 54 54 34 51 1961 dollars: All families and individuals. $6,930 $5,490 26 180,676 56,060 40,830 4,540 10,690 151,689 48,890 34,140 5,650 9,100 19 15 20 -2 0 17 N ational I ncome and P roduct Total, current dollars, In billions: Gross national product..................... . Disposable personal income__I_IIII7 Personal consumption expenditures Personal net saving............ . Per capita, 1954 dollars: Gross national product.__________ Disposable personal income______ I Personal consumption expenditures. A verage F amily P ersonal I ncome P opulation 2 (in i thousands) T otal2............ ........................ All families and individuals. Nonfarm families______ Farm operator families.. Individuals___________ 1 Mean income before taxes. 2 Excludes Alaska and Hawaii in 1950. 8 Population as of July 1; includes Armed Forces abroad. Source: National income and product and total population—Economic deport of the President Transmitted to the Congress January 1963, Together with the Annual Report of the Council of Economic Advisers, appendix C, tables y~}< cf 3« p-6, C-15, C-16; and Statistical Abstract of the United States: 1963 (83d ed., U.S. Bureau of the Census, 1962), table 424. Average family personal income and population of families and individuals—Maurice Liebenberg and Jeanette M. Fitzwilliams, “ Size Distribution of Income in 1961,” Survey of Current Business, April 1962, pp. 9-16, and Selma F. Goldsmith, Income Distribution of the United States, 1950-53,” ibid., March 1955. pp. 14-27. sumer units in real purchasing power since 1950, with increases averaging 28 percent and ranging from 19 percent in Philadelphia to 44 percent in Boston.5 This is not surprising, in view of the widespread recognition of changes in consumer prices as a basis for wage increases under collective bargaining contracts, either in formal escalator clauses or in wage rate negotiations. There was also increased recognition in wage negotiations of rising productivity. Output per man-hour in the private economy increased about one-third during the decade.6 On the other hand, incomes of many of the other types of consumers do not respond readily to changes in prices or improved economic con ditions, e.g., the retired, the unemployed, and those dependent on public or private assistance. • Between 1934-36 and 1950, worker families in large cities had a net in crease in purchasing power of about 50 percent, and between 1901 and 1950, about 110 percent. * Indexes of Output per Man-Hour for the Private Economy (Bureau of Labor Statistics, 1962), tables 1 and 2. 678 MONTHLY LABOR REVIEW, JUNE 1963 large segments of the population, city families have greatly expanded their use of credit, pri marily to finance purchase of homes, automobiles, and household durable goods, but also to improve their homes and to finance an education and other large or unexpected expenses. The frequency of mortgage and other debt is highly related to the income level and age cycle of the family, with younger families and middle income groups the most frequent users.8 For example, although the incomes of retired workers and other elderly persons improved markedly during the 1950’s, their incomes in 1960 were still only about half those of younger families throughout the United States.7 Average incomes of older families in large cities were higher than those for the country as a whole. In most of the metropolitan areas studied by BLS in 1960, average incomes after taxes of consumer units headed by a person 65 to 75 years of age were in the $4,000-$5,000 range; consumer units with older heads were generally in the $3,000$4,000 range. The increasing awareness of fami lies of the necessity of planning for an adequate income in retirement and the steps taken toward this end are important considerations in evaluat ing individual wealth, because of their effect on current income, spending, and saving patterns. 3 In 1960, about 14 percent of all U.S. families were headed by a person age 65 years or older. Their median income before taxes was $2,897, about one-half that of families with heads under 65. The income differences of older and younger families with more than two members were less signifi cant, but those of individuals not in families were greater. See Current Population Reports, Consumer Income (U.S. Bureau of the Census, January 1962), Series P-60, No. 37. * In the cities in the BLS survey in 1960, there was usually an average net increase in liabilities for all age groups up to 55 years, with the largest increase in the 25-34 age group. The 55-64 group usually reported an average net decrease in liabilities during the year. Older age groups reported relatively little credit activity. For a discussion of levels and changes in mortgage and installment debt for all U.S. spending units, see 1960 Survey of Consumer Finances (Ann Arbor, Mich., Survey Research Center, Institute for Social Research, University of Michigan, 1961). Greater Use of Credit. In spite of, or perhaps because of, the continued rise in real income of T a b l e 2. I n c o m e A f t e r T a x e s a n d C u r r e n t C o n s u m p t io n E x p e n d i t u r e s f o r A l l C o n s u m e r U n it s a n d a n d C l e r ic a l F a m il ie s i n M e t r o p o l it a n A r e a s , b y P o p u l a t io n , 1 9 5 0 - 6 0 1 Expenditures for current consumption Income after taxes Area and population Net percent increase, 1950-60 « 1960 average W age 1960 average Net percent increase, 1950-60 « All con Wage and All con Wage and All con Wage and All con Wage and sumer units clerical sumer units clerical sumer units clerical sumer units clerical families families families families Percent increase in Consumer Price Index, 1950-60 All areas-.............................................. $6,090 $6,329 «23 «28 $5,630 $6,044 « 17 320 23.2 Population—1,250,000 or more Baltimore, M d____ ___________ _____ Boston, Mass_____ ________ ________ Chicago, 111___ _________ ___________ Cleveland, Ohio_____ ______________ Detroit, Mich______ _______________ Los Angeles. Calif..................................... New York, N .Y __________ ______ _ Northern New Jersey............................... Philadelphia, P a___________________ Pittsburgh, Pa................................. St. Louis, Mo__ ___________________ San Francisco, Calif________________ Washington, D .C_______ __________ $5,671 6,869 6,857 <7,884 6,226 6,361 6,708 6,489 5,947 6,095 5,818 6,154 6,838 $6,007 6,956 7,006 4 7,106 6,520 6,753 6,919 6,474 6,135 6,276 6, 437 6,959 6,016 19 44 17 37 « 23 20 20 20 11 11 13 15 ? 20 27 44 28 26 $5,302 6,045 6,156 6,493 5,599 6,154 6,336 6,326 5,667 5,486 5,236 5,705 5,813 $5,589 6,431 6,694 6,086 5, 759 6,693 6,699 6,501 5,983 5,851 5,909 6,732 5,470 13 23 10 18 « 18 17 13 15 9 1 8 9 112 17 20 17 10 «21 19 29 18 15 14 26 17 «8 24.7 24.4 25.2 24.0 «21.3 26.3 22.7 22.7 23.9 25.4 23.7 29.8 327.9 Population—250,000 to 1,250,000 A tlanta, Qa__________________ Buffalo, N .Y ........ .................................... Dallas, T e x .............................................. Indianapolis, In d ________________ .. Seattle, Wash......... ................... ............. 5,412 5,755 5,613 5,652 6,548 5,660 6,511 5,415 6,132 6,860 m (•) («) 5,118 5,627 5,587 4.902 5,877 5,724 6,434 5,465 5,404 6,365 («) C) («) Population—50,000 to 250,000 Austin, Tex________ _______ _______ Cedar Rapids, Iowa________________ Champaign-Urbana, 111_____________ Orlando, Fla____ _______________ _ Portland, Me____________ ______ ___ 4,750 5,886 6,236 6,167 4,665 4,927 6,702 5,770 5,311 5,480 (•) (») m (») <*> 4,425 5,334 5,365 5,657 4,441 4,696 6,108 5,602 5,423 5,239 C) («1 (•) m m 31 24 41 23 19 22 34 22 <*) 29 20 i See text footnote 3 for coverage, definitions, and source of 1960 data. 1950 data for all consumer units are from the BLS Survey of Consumer Expendi tures in 1950, Study of Consumer Expenditures, Incomes and Savings, Statis tical Tables, Urban U.S.—1950, op. cit. The 1950 data for wage and clerical families are from Faith M. Williams, “ Standards and Levels of Living of City-Worker Families,” Monthly Labor Review, September 1956, pp. 10151023, and include urban areas with populations of 30,500 or more. The 1950 sample consisted of 10,351 consumer units and 5,994 wage and clerical families. « After allowance for change in Consumer Price Index. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis («) (*) («) C) («) («) (») («) («) 25 17 19 30 («) (6) <*) (») « CO (8) («) 15 («) («) («) 22.8 25.1 («) («) («) 00 CO 3 Detroit and Washington not included in 1950 averages, since the previous surveys in those cities relate to 1948 and 1947, respectively. 4 For a discussion of the overstatement of the 1960 income averages, see footnote 3, Consumer Expenditures and Income, Cleveland, Ohio, 1960 (BLS Report 237-21, May 1963). • Change from 1948 to 1960. « Not available. 1 Change from 1947 to 1960. 679 WORKERS’ WEALTH AND LIVING STANDARDS Through the widespread use of credit, families have acquired financial resources with which to supplement current money income and to build up an equity for the future. It has enabled them to acquire consumption goods, particularly houses and heavy durables, sooner than would be possible with current income and to spread their costs over a longer period of time. It also has had an important stabilizing effect on consumer demand and hence the overall level of economic activity. After-Tax Income and Current Consumption Expendi tures, Metropolitan Areas, 1960 and 1950 [Based on BLS surveys; see text footnote 3 and table 2] All Consumer Units Wage and Clerical Families $6,329 Spending and Saving Between 1950 and 1960, expenditures for cur rent consumption9 of all consumer units in metro politan areas increased, both in actual dollars (44 percent) and after allowance for price changes (17 percent), but in no area was the increase in expenditures as great as the increase in income. (See accompanying chart.) Net increases in current consumption expenditures ranged from 1 percent in Pittsburgh to 23 percent in Boston. Increases in real consumption expenditures of wage and clerical families were usually somewhat larger than those for all families, averaging 20 percent and ranging from 8 to 30 percent. In 1960, families and single consumers spent an average of $5,630 for current living expenses. In addition, their gifts and contributions averaged $313, including $124 for church and welfare organizations, and payments for personal insurance amounted to $336 (table 3). One-half of the fam ilies reported a net increase in assets or decrease in liabilities, which averaged $155 for all families, including those who had a net dissaving or no change in their asset-liability position. Wage and clerical families spent an average of $6,044 for cur rent consumption, with their outlays for gifts, contributions, and personal insurance proportion ately about the same as those for all consumer • Expenditures for current consumption include outlays for all goods and services purchased for family use. The total cost of durable goods purchased in the year is included, except for owned homes where only the costs of current operations, i.e., interest on mortgages, taxes, insurance, and repairs and re placements, are considered current consumption expenditures. Payments on mortgage principal and installment debts are considered reductions in liabilities, i.e., saving in the current year. Mortgage and installment debts incurred in the year are considered as dissaving. Personal insurance includes employee contributions to social security and government and private retire ment funds, as well as premium payments for life and other types of personal insurance, except health insurance. The family’s outlays for personal insurance are shown separately as a disbursement and do not enter into the computation of net change In assets and liabilities, i.e., average saving or dissaving. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1960 1950 1960 1950 IN 1960 DOUARS units. Current living expenses of wage and cleri cal families accounted for 95 percent of their disposable income, with considerable variation among the cities. Contractual Arrangements. Fifty years ago, fam ily spending was largely limited to items for immediate, or short-term, consumption and carried out on a cash basis. In such a situation, saving was for most families "money in the bank,” and the average financial status of families in a given year could be assessed rather accurately by observ ing the point on the income scale where income equaled expenditures, i.e., the break-even point. Furthermore, whether families on the average reported a net saving or a net dissaving for the year was a pretty good clue to their general financial status and that of the community. Today, much of family spending is done on the basis of long-term MONTHLY LABOR REVIEW, .TUNE 1963 680 commitments of various kinds, e.g., purchase of homes, automobiles, other durables, and insurance of all kinds, and it is increasingly difficult to draw a clear-cut line between spending and saving in a given year. Significantly, 1960 expenditures for current con sumption by all consumer units accounted for only 92 percent of income after taxes, an additional 2 percent was allocated to gifts and contributions to church and welfare agencies, and 5 percent to personal insurance. Furthermore, principal pay ments on mortgages, an essential outlay for con tinued occupancy of the home although they appear as a contractual saving in the family accounts, required an additional 5 percent and ranged from about 2 to 7 percent among the cities. Thus, the average net change in assets and liabilities in a given city at a given time is mean ingful only in relation to the various transactions which produced the average and to the way assets and liabilities were defined. In the BLS survey, for example, outlays for personal insurance are classified with disbursements and do not enter into the computation of net changes in assets and liabilities. Thus, excluding insurance from savings, the point on the after-tax income scale at which families reported an average net saving in 1960 ranged in the largest metropolitan areas from $4,000 in Washington, D.C., to $10,000 in San Francisco and New York. Most frequently the break-even point in these cities was at the $6,000-$7,500 income level. The income class in which a majority of families had a net saving was generally somewhat lower. If personal in surance, which includes individual outlays for social security and other retirement plans and life T a b l e 3 .— E x p e n d i t u r e D i s t r i b u t i o n , I n c o m e , a n d S a v i n g s f o r A l l C o n s u m e r U n i t s a n d W a g e F a m il ie s in M e t r o p o l it a n A r e a s , 1 1 9 5 0 - 6 0 1960 average Item Expenditures for current consumption,2total______ ____ . Food and beverages................................................................................ 'Tobacco______________________________ Housing, to ta l8__________ ____________ Shelter, fuel, light, refrigeration and water 4________ _______________ Household operation__ ____ ______________ Housefurnishings and equipment________ Clothing, materials, services______________ Personal care__________________ Medical care___________________________ Prepaid care (group plans and insurance).................... ................................. Recreation___ ______ ________ Reading and education................. ................ .................... Automobile purchase and o p e ra tio n ._____________ Other transportation_______________ Other expenditures................ ................. ...... ........... C l e r ic a l Percent distribution Percent change, 1950-60 All Wage and All Wage and consumer clerical consumer clerical units families units families and All consumer units Wage and cleri cal families 1960 1950 1960 1950 $5,630 1,472 101 1,674 1,040 336 292 575 158 356 90 225 119 721 103 126 $6,044 1,635 124 1,704 1,041 321 324 640 174 371 94 241 107 836 99 113 43.7 19.3 44.3 57.9 69.9 80.6 11.5 27.2 79.5 76.2 164.7 25.7 98.3 63.1 35.5 129.1 48.3 22.5 55.0 62.4 73.2 92.2 15.3 35.3 87.1 74.2 (5) 26.2 94.5 82.9 22.2 130.6 100.0 26.1 1.8 29.8 18.6 6.0 5.2 10.2 2.8 6.3 1.6 4.0 2.1 12.9 1.8 2.2 100.0 31.6 1.8 27.0 15. 6 4.7 6.7 11.5 2.2 5.2 .9 4.6 1.5 11.3 1.9 1.4 100.0 27.1 2.1 28.2 17.2 5.3 5.3 10.5 2.9 6.1 1.6 4.0 1.8 13.8 1.6 1.9 100.0 32.8 1.9 25.7 14.7 4.1 6.9 11.6 2.3 5.2 (!) 4.7 1.3 11.2 2.0 1.2 Gifts and contributions8............... . To church and other religious organizations............ . To welfare agencies........................................... 313 100 24 250 92 22 83.0 92.3 60.0 83.8 (!) (!) 100.0 31.9 7.7 100.0 30.4 8.8 100.0 36.8 8.8 100.0 (’) (s) Personal insurance outlays.................................... Social security, railroad, and other government and private retirem en t... . Life, endowment, annuity, and other insurance......................... 336 181 155 357 209 148 83.6 221.4 22.2 95.1 (s) (!) 100.0 53.9 46.1 100.0 30.6 69.4 100.0 58.5 41.5 100.0 1«) <*) Money income before taxes_______________ ______ Money income after taxes___________ ________ Other money receipts.............. .............................................. 6,906 6,090 83 7,116 6' 329 67 58.7 51. 9 59.6 65. 5 58.0 103. 0 Net change in assets and liabilities8__________ . Mortgage principal payments on owned dwelling___ +155 296 +48 305 Account balancing difference 7........................................ -260 —303 1 See tex t footnote 3 for coverage, d efin ition s, and source of 1960 data; for 1950, see footnote 1, table 2. 2 The classification of item s in th e 2 su rveys is n o t strictly com parable. 1 In cludes item s n o t listed separately. 1 Includes ren t and taxes, insurance, in terest, repairs, and other current operation expenditures of hom eow ners for principal residence and vacation hom e. E xcludes paym en ts on m ortgage principal and for hom e im p rove m en ts, w hich are counted as changes in assets and lia b ilities. » N o t available. • T he algebraic sum of increases and decreases in assets and liab ilities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N e t increases in assets or decreases in lia b ilitie s represent a n et savin g (-f-) during th e year. N e t decreases in a ssets or increases in lia b ilitie s represent a deficit ( —) or n et dissa v in g . 7 N e t reporting discrepancy b etw een th e receipts and disbursem ents a c cou n ts, obtained b y subtractin g personal consum ption expenditures, gifts and contribu tions, personal in su ran ce, and the n e t change in assets and lia b ilities from th e su m of m o n ey incom e after taxes and other m on ey re ceip ts. N eg a tiv e ( —) difference in d ica tes reported receipts are less th an disb u rsem en ts (in clu d in g sa v in g s or dissavin gs). WORKERS’ WEALTH AND LIVING STANDARDS insurance premiums, were classified as saving, net deficits would be offset in most income classes above $3,000-$4,000. The BLS survey did not measure total liquid asset holdings, but a nationwide survey conducted by the University of Michigan shows that onehalf of all U.S. spending units held more than $475 of liquid assets in 1960, with 24 percent reporting no holdings and 25 percent with liquid assets of $2,000 or more.10 The proportion of spending units with sizable liquid assets was much larger in 1960 than at any time in the past decade, and the number with checking accounts and deposits in savings institutions had grown sharply in recent years. Taxes. Many of the goods and services which families formerly purchased themselves, saved for, or did without are now provided through the tax dollar. Personal taxes—Federal, State, and local—on the average represented 12 percent of money income before taxes for all consumer units, and 11 percent for wage and clerical families. Sales and excise taxes on goods and services are included with the expenditures for the item and cannot be identified in the data now available. Real property taxes, classified as a housing expenditure, are an important source of revenue for local governments. They averaged about 1 to 2 percent of before-tax income of all consumer units, or about 2 to 5 percent of the before-tax income of homeowners. Current Living Expenses Significant changes also occurred during the 1950’s in the families’ allocation of current con sumption expenditures to various kinds of goods and services and the nature of the goods and services purchased. These changes reflect the complex interaction of many factors which affect family spending—economic, demographic, and social. These factors include changes in the level and distribution of income, in price levels and relationships, in production and distribution, and in financing methods. Accompanying these eco nomic changes have been important social and demographic changes—most importantly, the changing age distribution of the population, the continued trend to homeownership with the ac 686133—63------6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 681 companying increase in suburban living, increased employment of women (particularly older women and married women), and increased independence of retired persons. Despite the limited detail of available data on family spending, broad patterns and trends are observable. Perhaps the most significant is that the three basic expenses—food, shelter, and clothing—required a smaller share, declining from 57 percent of the 1950 expenditures to 53 percent in 1960, with considerable variation among the cities. Spending for food declined from 30 to 24 percent, and clothing from 11 to 10 percent, while the proportion of total spending for shelter, including fuel and utilities, rose from 16 to 19 percent. Wage and clerical families used a slightly smaller percent than all consumers for shelter in both years; 15 percent in 1950 and 17 percent in 1960. The Home and the Automobile. One cannot assess the 1960 shelter expenditure without reference to increased homeownership and suburban living, which have linked together, for many families, expenditures for housing and automobile trans portation. In all areas except New York and Portland, Maine, in 1960, homeownership ex ceeded 40 percent and ranged as high as 69 percent for wage and clerical families in Detroit and Buffalo (table 4). Even in New York, where 29 percent of all consumer units and 34 percent of wage and clerical families owned homes and 50 and 59 percent, respectively, owned automobiles, the increase in both home and auto ownership from 1950 levels had been substantial (9 and 11 percentage points, respectively, for all consumer units). Auto ownership in the other cities ranged from 64 to 85 percent for all consumer units and 77 to 96 percent for wage and clerical families, averaging 72 and 82 percent, respectively. Expenditures for auto purchase and operation in all areas combined accounted for 13 percent of total current consumption expenditures for all consumer units and 14 percent for wage and clerical families, up from 11 percent for both in 1950. Public transportation expenditures added another 2 percent. Even if outlays for recréa lo Liquid asset holdings Include U.S. savings bonds, checking accounts, savings accounts in banks, and shares in savings and loan associations and credit unions. I960 Survey of Consumer Finances, op. cit., p. 77. 682 MONTHLY LABOR REVIEW, JUNE 1963 T a ble 4. P e r c e n t O w n i n g H o m e s a n d A u t o m o b il e s a n d P e r c e n t o f C u r r e n t C o n s u m p t io n E x p e n d i t u r e s f o r {s h e l t e r a n d A u t o m o b i l e T r a n s p o r t a t i o n , A l l C o n s u m e r U n i t s a n d W a g e a n d C l e r i c a l F a m i l i e s i n M e t r o p o l it a n A r e a s , 1 9 6 0 1 Percent homeowners all year Area and region Percent spent for shelter, fuel, light, refrigeration, and water 2 Percent automobile owners end of year Percent spent for auto mobile purchase and operation All consumer Wage and All consumer Wage and All consumer Wage and All consumer Wage and units clerical fam units clerical fam units clerical fam units clerical fam ilies ilies ilies ilies A ll areas_____________ 62 54 18.6 17.2 72 82 12.9 13.8 N o rth east: B o sto n , M ass__________ B uffalo, N .Y ..................... N e w Y ork, N .Y _______ N orthern N e w J e r s e y P h ilad elp h ia, P a .............. P ittsb u rg h , P a ................. P ortlan d , M e .................... 41 65 29 55 64 66 38 42 69 34 56 68 65 39 20.1 17.4 19.3 19.6 16.6 17.0 20.2 18.5 15.9 18.3 18.9 15.1 16.3 18.8 67 76 50 80 67 67 64 78 86 59 85 77 82 80 12.1 14.4 8.3 13.2 12.4 13.6 10.6 13.4 16.1 9.2 13.1 14.4 13.4 12.2 N o rth C entral: Cedar R apid s, I o w a ___ C ham p aign-U rban a, 111. C hicago, 111____________ C levelan d , O hio_______ D e tr o it, M ic h ................... In d ian ap olis, I n d —......... S t. L ou is, M o _________ 64 58 46 64 65 53 62 61 62 48 60 69 61 62 18.9 19.7 19.8 17.9 17.1 19.6 18.2 18.7 20.1 18.2 17.9 16.8 17.9 17.0 80 83 70 81 77 72 77 91 91 80 81 84 89 92 15.9 12.3 12.8 11.7 15.5 11.9 13.1 16.3 15.2 14.0 10.6 15.3 14.7 14.2 S o u th : A tla n ta , G a....................... A u stin , T e x ___________ B altim ore, M d ________ D a lla s, T e x ____________ Orlando, F la ..................... W ashington, D .C ............ 49 54 58 53 63 43 50 47 60 60 60 41 16.7 18.2 19.0 17.7 19.0 20.9 15.6 16.1 17.8 17.4 18.8 20.3 68 79 68 83 83 72 80 87 78 87 95 78 14.8 14.4 12.4 15.0 14.2 11.3 16.6 17.1 14.3 14.9 14.3 12.3 W est: L os A ngeles, C a lif_____ San Francisco, C a lif___ S eattle, W ash ................... 49 48 60 53 61 61 16.9 17.6 17.9 17.0 15.9 16.4 85 71 76 96 89 83 16.3 12.9 11.1 16.6 15.1 10.9 1 See text footnote 3 for coverage and definitions. tional travel were not included in the 1960 trans portation expenses, the combined expenditures for shelter and transportation for regular family living, on the average, exceeded those for food. This is the first time that this has occurred in BLS expenditure studies. Furthermore, mortgage and auto instalhnent debts make up the major share of the total liabilities of most families, and the increased equity in the home, their principal saving and major asset. One-third of all consumers and two-fifths of wage and clerical families (about one-half to three-fourths of the homeowners in the different areas) made principal payments on then’ mortgages, which amounted to about 5 percent of average income after taxes for all families in the survey. The payments averaged $863 for all families with mortgages; $768 for wage and clerical families. This increased equity in homes was the major source of net saving in cities which had an average net increase in saving, and the incurring of new’ mortgages in excess of average repayments was the major source of dissaving https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 See footnote 4, table 3. in cities which had a net dissaving during 1960. Variations among the cities in the rate and time at which shifts to homeownership occurred largely determined their mortgage status in 1960. In Detroit, for example, despite a relatively poor employment situation in 1960, owners continued to make payments on mortgages incurred in earlier years. Since relatively few families in this high homeownership city bought houses during the year, a net average saving was recorded. In San Francisco, on the other hand, a high home purchase rate resulted in a net increase in mortgage indebtedness, and a consequent dissaving during the year. The importance of the home as most families’ principal asset makes the current market value of homes an important consideration in under standing individual wealth. In 1960, average home values in the 15 largest metropolitan areas surveyed ranged from about $12,000 to $20,000, with homes owned by wage and clerical families about $1,000 to $2,000 less. In some cities, families have built up sizable equities in their WORKERS’ WEALTH AND LIVING STANDARDS homes; in others, the average family is in the early stages of homeownership.11 In addition to providing more space and, usually, a better quality of housing, homeownership has sparked the acquisition of household durable goods, particularly mechanical kitchen, laundry, and cleaning equipment. The increased ownership of such equipment is not readily dis cernible from changes in family expenditures, since their cost is frequently included in the pur chase price of the home. There can be little doubt, however, that technological developments and a high real income level enabled the average family to have a substantially higher inventory of household goods in 1960 than 10 years earlier. The Role of Insurance The greatly improved governmental measures designed to protect the level of living of the worker and his family from the risks of unemployment, illness, old age, and premature death, discussed elsewhere in this issue, have certainly added to individual wealth over the past decade and have also immeasurably affected family spending and saving habits. Families have not, however, looked to government for all the protection they want but have increased their purchases of pri vate insurance of all types: Insurance on homes, automobiles, and other personal property; health insurance and prepaid medical plans; life insurance ii The nationwide Michigan study previously cited indicated that 60 percent of nonfarm families owned their homes in 1960, with an annual rate of purchase of about 6 percent. Forty percent of these homes were mortgage free, with indebtedness more prevalent at higher income levels and among younger age groups. Ibid., pp. 49-71. ii Includes expenditures for hospitalization, surgical, and other forms of health insurance paid for entirely by the family and employee contributions to plans associated with employment, but excludes employer contributions. u See also, Louis S. Reed and Dorothy P. Rice, “ Private Medical Care Expenditures and Voluntary Health Insurance, 1948-61,” Social Security Bulletin, December 1962, pp. 3-13; and Donald G. Hay, “Independent Health Insurance Plans, 1961 Survey,” Social Security Bulletin, February 1963, pp. 3-11. i* Alfred M. Skolnik, “ Employee-Benefit Plans, 1954-60,” Social Security Bulletin, April 1962, pp. 5-16. is Over four-fifths of the workers in a BLS study of wages and supplementary benefits in metropolitan areas in 1959-60, were covered by hospitalization and surgical insurance paid for partly or wholly by the employer. About two-thirds of the office workers and one-fourth of the plant workers had paid sick leave. Sickness and accident insurance covered about two-thirds of the plant workers and about two-fifths of the office workers. Three-fifths of both plant and office workers were covered by medical insurance which paid doctors’ fees, either in whole or part, and one-fifth and two-fifths, respec tively, had insurance covering major medical expense. See “Supplementary Wage Benefits in Metropolitan Areas, 1959-60,” Monthly Labor Review, April 1961, pp. 379-387. 1« Skolnik, op. cit. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 683 and annuities; personal liability insurance; and disability income insurance. In addition, many workers and their families are covered by health insurance and pension plans paid for either wholly or in part by employers. The many scientific achievements in preventive medicine and medical treatment, which have greatly reduced the risks for workers of disabling illness and premature death, have also lengthened life expectancy and years of retirement, albeit with associated health and income maintenance problems. Total medical care expenditure12 averaged $356 for all families and single consumers and $371 for wage and clerical families—about 6 percent of after-tax income for both groups. Seven to eight families out of ten made payments on health insurance, with average outlays (for all families, including those who made no such payments) about one-fourth of total medical care expenditures for both groups. In all cities where the compari son could be made, the increase in health insurance between 1950 and 1960 exceeded that for total consumption expenditures, even though prices of hospitalization insurance more than doubled over the decade.13 At the end of 1960, more than two-thirds of the Nation’s employed wage and salary labor force had some form of health insurance financed wholly or partly by the employer,14 and about one-half had formal protection against income loss resulting from sickness.15 Personal insurance payments, including both life and retirement, were also about 6 percent of after-tax income, averaging $336 for all consumer units and $357 for wage and clerical families. In 1960, social security and other retirement pay ments were from 1% to over 3 times their level in 1950, reflecting broader coverage, increased rates and earnings base, and higher incomes. On the other hand, life insurance premiums, which accounted for about 2.5 percent of after-tax income in 1960, had increased only moderately in most cities and showed a slight decrease in a few areas. This probably resulted in part from the wide spread coverage of workers by insurance plans as supplementary wage benefits. At the end of 1960, almost three-fourths of the employed labor wage and salary workers had life insurance under such plans, and over two-fifths were covered by such retirement plans.16 Cover- 684 age was higher for office and plant workers in metropolitan areas surveyed by BLS.17 The provisions of pension plans cover a wide variety of conditions and vary widely among different organizations, but they have been greatly im proved and extended in the postwar years.18 There has also been a proliferation of profitsharing, savings, stock purchase, and similar plans in recent years to insure workers a share of profits and benefits in case of loss of job, retire ment, disability, or death.19 The Way of Life and Living Standards More Leisuref As we have seen, much of the increase in productivity between 1950 and 1960 went for increased spending and saving, but part of it went to increased leisure time. There were marked increases in the prevalence and length of paid vacations provided in collective bargaining contracts, and eligibility requirements were liberalized.20 Paid holidays also became more prevalent. There have been challenges to the idea that the reduction in number of hours worked has increased leisure in any real sense, i.e., when defined as “the state of being free from the necessity to labor,” since much of the free time has been devoted to do-it-yourself activities, organized recreation, and participation in com munity activities.21 There is, however, little doubt that increased leisure has contributed im portantly to changes in family living patterns and spending habits. Participation in Community Activity. Both the time and money which Americans have tradi tionally contributed to community activities, particularly those of religious and welfare organi zations, are a part of individual wealth and enrich the social and cultural level of living of both the individual and the community. And the ex tent of participation and the share of family income given to religious and welfare organiza tions are indicative of the high regard with which such activities are held. In 1960, about 90 percent of the families in the metropolitan areas studied reported gifts to re ligious and welfare organizations. The average contribution of all consumer units, including those who did not give, was $124, or about 2 percent of after-tax ineome in these cities. Among https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 wage and clerical families, the average gift to religious and welfare organizations represented an only slightly lower proportion of income. Three-fourths of all families and single consumers reported contributions to religious organizations which averaged almost double such contributions in 1950.22 Contributions to welfare organizations showed smaller gains over the decade in these cities. Emphasis on Education. Traditionally, American families have recognized both the cultural and the money value of an education, but increasingly so in the postwar years. That “education is the ultimate source of much of our increased produc tivity” and “one of the deepest roots of economic growth” cannot be seriously challenged in a nuclear age.23 When asked why children should con tinue their schooling, parents overwhelmingly cite the better job prospects, greater choice in employment, and increased financial success asso ciated with higher levels of education.24 Total expenditures for private education and research reached a level of $5.1 billion in 1961, or almost three times the 1950 level. In all of the metropolitan areas studied by BLS, expenditures 17 Life insurance plans applied to about nine-tenths of these workers, and pension plans to three-fourths of the office workers and two-thirds of the plant workers. See source cited in footnote 15. 18 Digest of One-Hundred Selected Pension Plans Under Collective Bargaining, Spring 1961 (BLS Bulletin 1307, 1962). 18 See Digest of Profit-Sharing, Savings, and Stock Purchase Plans, Winter 1961-62 {20 Selected Plans), (BLS Bulletin 1325, 1962); Also, “ Long Range Sharing Plan for Kaiser Steel Corp. Employees,” Monthly Labor Review, February 1963, pp. 154-160. 28 The maximum vacation allowance of 2 weeks, characteristic of collective bargaining agreements in 1949, was provided by less than 10 percent of the agreements studied in 1961. Maximums of 3 to 3J4 weeks were provided in 49 percent of the 1961 agreements, and 4 weeks or more in 43 percent. The percent of workers under agreements providing for a 3-week allowance after 10 years’ employment more than doubled between 1957 and 1961, from 11 percent to 26 percent. See “ Paid Vacation Provisions in Major Union Contracts, 1961,” Monthly Labor Review, August 1962, pp. 875-881, and “ Re cent Growth of Paid Leisure for U.S. Workers,” Monthly Labor Review, March 1962, pp. 249-257. 21 Sebastian de Grazia, Of Time, Work, and Leisure, as reviewed by Peter Henle in Monthly Labor Review, January 1963, pp. 79-80. 22 For similar data from earlier BLS studies, see “ City Families as Givers,” Monthly Labor Review, December 1959, pp. 1303-1311; see also, Thomas Karter, “ Voluntary Agency Expenditures for Health and Welfare from Philanthropic Contributions, 1930-55,” Social Security Bulletin, February 1958, pp. 14-18; and James N. Morgan and others, Income and Welfare in the United States (New York, McGraw-Hill, 1962). 23 Economic Report of the President Transmitted to the Congress January 1963, p. xxvi. 2<In 1958, an elementary school graduate could expect, on the average, a lifetime income of about $182,000, compared with approximately $258,000 for a high school graduate, or about a 42-percent differential. A college graduate could expect to earn about $435,000, or about a 70-percent differential over the high school graduate. See Herman P. Miller, “ Money Value of an Educa tion,” Occupational Outlook Quarterly, September 1961, pp. 3-10. WORKERS’ WEALTH AND LIVING STANDARDS for reading and education increased substantially more than did total expenditures for current con sumption over the decade. Reading and educa tion represented only about 2 percent of after-tax income in 1960, but this excludes the families’ expenditures for the support of public schools, which commanded a major share of their property taxes.25 Working Wives. The importance of the wife’s contributions to the level and standard of living of the family has never been seriously questioned, although in recent years some discussions of the employment and earnings of married women give the impression that wives have assumed an en tirely new role in the family. When the Nation was predominantly rural, women frequently pre pared and marketed poultry, eggs, and dairy products and assisted in vegetable gardening and thus, within the home, contributed to the cash income of the farming operation. In urban com munities, home industries provided them an opportunity to contribute to the family’s money income. With increased urbanization and indus trialization, opportunities for employment within the home became very limited. In the large industrial centers on the East Coast, from the turn of the century through the period of immigra tion following World War I, a sizable proportion of the income of workers’ families came from roomers and boarders.28 In 1960, receipts from boarders and lodgers were not a significant source of family income, but employment of married women outside the home had increased greatly. as For a discussion of the value of public school education to families, see the article by Ida C. Merriam on pp. 687-694 of this issue. >8 In 1901, 23 percent of the 25,440 wage and clerical worker families in the BLS survey of the cost of living in industrial areas had income from boarders and lodgers which accounted for 7.8 percent of total family income. Children contributed 9.5 percent, wives, 1.5 percent, and 81.3 percent was from hus bands’ earnings and other sources. See Eighteenth Annual Report of the Commissioner of Labor, 1903, Cost of Living and Retail Prices of Food (Wash ington, 1904), pp. 64 and 362. 37 Jacob Schiflman, “ Marital and Family Characteristics of Workers, March 1960,” Monthly Labor Review, April 1961, pp. 355-364; see also same title, March 1962, Monthly Labor Review, January 1963, pp. 24-36; and Marga ret S. Carroll, “ The Working Wife and Her Family’s Economic Position,” Monthly Labor Review, April 1962, pp. 366-374. 28 Emma O. Holmes, Job-Related Expenditures of Working Wives, Agricul ture Research Service, U.S. Department of Agriculture, November 19, 1958. See also “Net Contribution of Working Wives in Texas to Family Income,” Monthly Labor Review, December 1962, pp. 1383-1384. 2« For a summary of women’s ownership of Insurance and other assets, see Women’s Wealth—How Much7 (Women’s Division, Institute of Life In surance, January 1963). 30 Williams, op. cit., p. 1016. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 685 Information on income, spending, and saving of families with working wives is not yet available from the BLS expenditure survey, but data on the extent of their employment and earnings are available from other sources. In March 1960, about 30 percent of wives were employed: About one-third at year-round, full-time jobs; one-third full time but part year; and one-third part time. Full-time, year-round working wives contributed about 38 percent of their family income. The median proportion for all working wives, including part-time workers, was 20 percent.27 Of course, the earnings of married women are not a net gain to family income, for there are expenses associated with employment outside the home. Studies of work-associated expenditures are not conclusive, but if the increased tax liability is considered as an expenditure, it appears that only about onehalf to three-fifths of the wife’s earnings result in a net addition to family income.28 Although much has been said of the advantages and disadvantages of such employment and its effect upon family life, working wives have no doubt contributed appreciably to the rise in real income of families since 1950, and thus the attainment of a considerably higher level of living, including acquisition of homes and better educa tion of children, than would otherwise have been possible. Their long-run contribution may be enhanced if their employment entitles them and their families to participate in health and life insurance and retirement plans,29 and their earnings could provide an important cushion in case of unemployment of the husband. Another important aspect of women’s working outside the home has been its effect on “standards of living—the goals we set for ourselves as con sumers of goods and services and as users of leisure time, and our norms for conditions of work.” 30 More education and opportunities to associate with persons from various social and economic backgrounds have greatly influenced working women’s ideas of what is necessary for adequate living. The rising scale of living made possible by their higher family income and the more limited time to devote to household tasks have in turn stimulated the development of various laborsaving devices for housekeeping and care of the family, from frozen prepared foods to auto matic washer-dryer combinations. 686 Higher Standards. In 1959, the BLS estimated the cost of a “modest but adequate” standard of living for a workingman’s family of four persons in 20 large cities. The total cost of this budget ranged from about $5,400 to $6,600, with the cost of goods and services in the $4,600 to $5,600 range.31 The 1960 average income of workers’ families most nearly approximating the type used in the budget substantially exceeded the budget costs in these cities, indicating that a majority of families had achieved a level of living above that provided by the budget. There are, however, sizable numbers of families whose incomes, either temporarily or permanently, are not sufficient to provide this modest standard of living. The many studies made to identify the low-income groups in the population agree that they are primarily the disabled, the untrained younger heads of households, the elderly retired, and the unemployed. Implications for the Future The level of living, as a measure of the wealth of city-worker families in 1960, is evidence at the same time of considerable progress in workers’ security and of potential problems. Maintaining these high levels of consumption is predicated on families’ being able to meet their spending and saving commitments through continued employ ment and high real income. Continued improve ments in the level of living and economic growth are inextricably related. Both the nature and rate of growth depend heavily, in our economy, upon the purchasing power and choices of the consumer. Quite clearly, in 1960, city families had more of what is often called "discretionary income,” above that required to provide the neces sities of life, and they followed the usual family practice of spending it for what previously were thought of as "extras” ; home improvements, leisure time activities such as travel, more eating out, more for education, insurance, gifts and con tributions, etc. In so doing, they have introduced into their manner and standard of living many things which, in a sense, become "necessities” in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 then- future budgets and important considerations in estimating future demand. To support these levels and improve them will require not only higher productivity but also changes in the com position of the labor force and of production in response to changing patterns of consumption and new ways of life. The importance of the mutual dependence of the family and society in economic matters was succinctly stated by Frederic Le Play when he said, “Fundamental prosperity is associated not only with a well-developed material standard of living but with a social system organized to pre serve this standard of living.” 32 American fam ilies strongly resist reductions in standards of living once achieved, and spending and saving patterns as complex as those currently prevailing, once established, are not easily changed. The high incomes and levels of living achieved by fully employed families in recent years have become the accepted way of life, and it has become increasingly difficult for families in periods of reduced income incident to disability, unemploy ment, or retirement to adjust such standards downward. Young married persons, leaving home at the peak of their parents’ earning power, do not wish to establish their own households at a lower scale commensurate with their incomes. The increased cost and necessity of more and better education has become a substantial financial burden for many families. The high income and level of living of the majority of worker families contrasts sharply with that of those dependent on assistance. Measures to insure an improvement in the level of living of such families are of utmost importance, not only to the individual but to the national economy. m I t was estimated that a comparable budget of goods and services for an employed 2-person family would range from about $3,100 to $3,700 in these large cities; for a 3-person family, from about $4,000 to $4,900; and for a 5-person family, from about $5,550 to $6,700. The comparable budget for a retired couple ranged from about $2,600 to $3,400. See Helen H. Lamale and Margaret S. Stotz, “ The Interim City Worker’s Family Budget,” Monthly Labor Review, August 1960, pp. 785-808; and Margaret S. Stotz, “ The BLS Interim Budget for a Retired Couple,” Monthly Labor Review, November 1960, pp. 1141-1157. « As interpreted by Carle C. Zimmerman, Consumption and Standards of Living (New York, D. Van Nostrand Co., 1936), p. 431. Social Expenditures and Worker Welfare Although there are gaps in the protection and coverage of our social welfare programs, the signifi cant fact is that these mechanisms exist and can be adjusted . I da C. Merriam* To a ssess the changes and improvements that have occurred in recent years in the welfare of workers and their families, social expenditures as well as the growth in consumer purchasing power must be considered. In one sense, all govern mental activities and expenditures have an effect—whether favorable or unfavorable—on the welfare of the people of a country. The nature of our relations with the rest of the world and the overall vigor of the domestic economy determine what is possible in any specific area of life. For the increasing number of people who live in cities, governmental action or inaction regarding city planning, urban renewal, mass transportation, roads, parks and recreational facilities, waste disposal, water supplies, control of air pollution, and similar matters has an inescapable effect on their lives. However, in this article, our assessment of public expenditures is limited to those programs which provide benefits directly to individuals and families. These programs and social mechanisms are of two general kinds: (1) those designed to distribute income more evenly over the life cycle and over periods of earning and nonearning and to assure at least minimum income to everyone, regardless of his circumstance and (2) those which provide services—such as education, health care, rehabilitation and training—of basic im portance to society as well as to individuals and which are not readily provided through market mechanisms or likely to be universally or widely available if left entirely to private action. Both types of social welfare expenditure have been increasing in importance over the past https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis several decades (table 1). The growth in total social welfare expenditures when adjusted for price changes has been somewhat greater in the 13 years since 1950 than it was in the 15-year period from 1935 to 1950. Such expenditures constituted 9.5 percent of the gross national product in fiscal 1935, when output was low and emergency relief near its peak, 8.8 percent in fiscal 1950, and will be about 11.6 percent in fiscal 1963 (table 2). Federal welfare expenditures have declined from 48 to 28 percent of total Federal expenditures since 1935; State and local government welfare expenditures rose from 51 to 60 percent of their total expenditures during the same time. Income Maintenance Programs Fluctuations in income—whether due to crop failure or bounty, war and pillage, epidemics, or unusually favorable conditions—were more ex treme in most preindustrial societies than they are in modern economies. Technology has increased our control over output,and we have gone a long way toward building the social institutions necessary to assure a continuing flow of income, that is, of claims to a share of the current output, to individuals and families in all kinds of situations. Today, practically all workers in the United States contribute toward one or more social insurance programs through which claims to income can be exercised if they retire, are disabled, or their earnings are cut off under other designated circumstances. The total contributions ear marked for social insurance (including amounts •Director, Division of Research and Statistics, Social Security Administra tion, U.S. Department of Health, Education, and Welfare, 687 688 MONTHLY LABOR REVIEW, JUNE 1963 paid by employers as well as by employees and selfemployed persons) are currently about equal to the total benefits being paid to retired, disabled, or unemployed workers and their dependents or survivors under these programs—about $26 billion in fiscal 1963. Social insurance benefit payments have in creased more rapidly since 1935, and especially since 1950, than any other major type of social welfare expenditure. This is largely the result of the expansion of coverage and addition of new benefits and the increasing proportion of persons reaching retirement age with enough credited earnings (whether their own or their spouse’s) to qualify for benefits under old-age, survivors and disability insurance. In fiscal 1935, prior to the passage of the Social Security Act, payments under workmen’s compen sation laws (then in effect in all but four States) and the Federal Longshoremen’s and Harbor Workers’ Compensation Act amounted to $174 million. Retirement systems for Federal, State, and local government employees paid $210 million (table 3). In the United States, as in most other countries, retirement systems for public em ployees long antedated the establishment of retirement benefits for the working population in general. Workmen’s compensation was the first type of social insurance covering wage earners T a b l e 1. S o c ia l l ic P r o g r a m s , W e l f a r e E x p e n d it u r e s U n d e r P u b F is c a l Y e a r s 1 9 3 5 , 1 9 5 0 , a n d 1 9 6 3 [In millions] Fiscal year Program 1935 1950 19631 $6,503 $23,189 $65,904 finclal insurance and related programs________ Public aid 2 _____________ ________________ Veteran s’ program s Other welfare programs 8 . m _ TTealt.h and medical program s__ ... __ "Education 4 _ _ _______________________ $384 2,998 450 139 544 1,989 $4,911 2,496 6,381 402 2,344 6,655 $25,735 5,516 5,385 1,483 5,657 22,128 Services selected from above programs: Medical services provided under programs other than health and medical programs. Educational benefits provided under veterftps' pro g ram s___ ___________________ 134 978 2,824 Total . ______ 2,689 10 0 ^Preliminary estimates. 2 Includes public assistance, work program earnings, other emergency assistance, and the value of surplus food or food stamps distributed to needy families. 2 Includes vocational rehabilitation, Institutional and other care (including value of surplus food distributed to institutions), school lunch, and child welfare services. ‘ Includes school health programs and excludes veterans’ educational expenditures. N ote: Because of rounding, sums of individual Items m ay not equal totals. Source: For 1935and 1950, Ida C. Merriam, “ Social Welfare Expenditures, 1960-61,” Social Security Bulletin, November 1962, pp. 3-13; for 1963,estimates of the Division of Research and Statistics, Social Security Administration. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T a bl e 2. T r e n d s i n S o c ia l W e l f a r e E x p e n d i t u r e s U n d e r P u b l ic P r o g r a m s, F is c a l Y e a r s 1 9 3 5 , 1 9 5 0 , a n d 1963 Fiscal year Item Percent increase 1935 Total social welfare expenditures (in millions): Current prices______________ 1963 2 prices________________ Per capita social welfare expendi tures: Current prices______________ 19632 prices.......... ..................... Ratio of— All welfare expenditures to— Gross national product___ Total government expendi tures_________________ Federal welfare expenditures to all Federal expenditures____ Federal welfare expenditures from general revenues to all Federal expenditures from general revenues___________ State and local welfare expendi tures to all State and local ex penditures________________ 1950 19631 1935- 1950- 193550 63 63 $ 6,503 $23,189 $65,904 257 $15,265 $29,353 $65,904 92 184 125 913 332 $ 50.33 $150. 89 $345. 67 $118.15 $191.0C $345. 67 129 81 587 193 9.5 8 .8 1 1 .6 49.4 36.7 38.7 47.8 24.3 28.4 47.6 21.3 13.7 50.8 61.7 59.8 200 62 Preliminary estimates. Fiscal year. Source: See table 1 . 1 2 generally to be adopted in the United States, also following the pattern of development in other countries. Pensions for veterans have played a somewhat more important role in the United States than in many other countries. While largely over-shadowed now by social insurance, veterans’ pensions and compensation in fiscal 1963 amounted to $3.8 billion, compared with $4.2 billion for all public assistance cash payments. In addition, vendor medical payments under public assistance amounted to $1.0 billion. The costs of medical services under the veterans’ programs were at about the same level as vendor medical payments under public assistance (table 4). The Social Security Act of 1935 initiated a nationwide program of protection against the loss of earnings that has now expanded to provide very broad, though still far from universal coverage. In moving from workmen’s compensation to old-age and unemployment insurance, the United States laid out a new path. Most countries have given priority to sickness benefits and health insurance, and only later have undertaken to provide retirement, permanent disability, and survivor insurance. Unemployment insurance, which can operate effectively only in a developed labor market (and not in an economy with a vast SOCIAL EXPENDITURES AND WORKER WELFARE 689 overhang of underemployed and marginally selfemployed), is still nonexistent in most parts of the world and even in some industrialized countries. T a b l e 4. P u b l ic E x p e n d i t u r e s f o r H e a l t h a n d M e d ic a l S e r v ic e s , F is c a l Y e a r s 1 9 3 5 , 1 9 5 0 , a n d 1 9 6 3 [In millions] Fiscal year Old-Age, Survivors, and Disability Insurance. The social security program in this country took another important innovating step. As a result of the 1939 amendments to the Social Security Act, workers then at or approaching retirement age were enabled to qualify for almost full-amount benefits if they had been covered by the Federal old-age and survivors insurance system (OASDI) for a year and a half. Subsequent amendments extended almost immediate full benefits rights to other newly covered groups. The program origi nally covered wage and salary workers in private industry. The major expansions in coverage and benefits came after 1950 as the almost twentyfold growth in benefit payments (sixteenfold in 1963 dollars) since 1950 would suggest. The 1939 amendments added benefits for de pendent wives and children of retired workers and for survivors (aged widows and orphaned children and their mothers). The program was not amended again in any important respect until 1950. During the intervening years and particu larly after 1946, the value of the benefits was largely eroded by inflation. By 1949, the purT a b l e 3. tenance E x p e n d i t u r e s U n d e r P u b l ic I n c o m e M a in P r o g r a m s , F is c a l Y e a r s 1 9 3 5 , 1 9 5 0 , a n d 1 9 6 3 [In millions] Fiscal year Program 1935 1950 T otal---- --------- ---------- --------------------- — $3,772 Social insurance and related programs................... Old-age, survivors and disability insurance.. Railroad retirement--------------------------------Public employee retirem ent-............................ Unemployment insurance and employment service________________________________ Railroad unemployment insurance and temporary disability insurance-------- ------State temporary disability insurance (ex cludes private medical benefits2) ----------Workmen’s compensation________________ $384 Veterans’ pensions and compensation. Public aid_________ Public assistance. Medical benefits included I n Workmen’s compensation_________________ Temporary disability insurance-----------------Public assistance (vendor medical paym ents). 1963 J $9,500 $35,079 $4,911 784 304 743 2ÎÔ' $25,735 15,663 1,089 3,571 2,230 3,292 151 215 71 626 435 1,470 174 390 2,093 3,828 2,998 624 2,496 2,490 5,516 5,256 65 193 1 470 25 1,036 « Preliminary estimates. . . . » Medical benefits paid under public law in California and N ew York by private insurance carriers and self-insurers. p N ote: Because of rounding, sums of Individual items may not equal totals. S ource : See table 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Type of service 19631 1935 1950 $678 $3,323 $8,481 Health and medical services____________________ $640 $2,738 1,174 339 General hospital and medical care___________ 332 39 Defense Department facilities and medicare___ 586 56 Veterans’ hospital and medical care__________ Public assistance (vendor medical payments)__ 193 Workmen’s compensation (medical benefits)2. . 65 Temporary disability insurance (medical bene 1 fits) 2 . - ___ _____ ____ 7 Medical vocational rehabilitation____________ (9 Matouml and child health services 7 30 31 10 School health (educational agencies)_________ 55 Medical research 5_ _______________________ 328 Other public activities_____________________ 124 585 38 Medical facilities construction__________________ 3 156 Veterans Administration___________________ Defense Departm ent______________________ (8) (6) 429 35 Other__ ________________________________ $7,832 2,730 790 Total expenditures .............. ... ............. . 1 ,0 2 1 1,036 470 25 26 179 122 938 495 649 94 30 525 1 Preliminary estimates. 2 Includes medical benefits paid under public law b y private insurance carriers and. self-insurers. 2 Excludes medical benefits paid under public law in California and N ew York by private insurance carriers and self-insurers. 1Less than $)3 million. 2 Excludes medical and health-related research expenditures included under the maternal and child health and vocational rehabilitation programs. 6 Included in “ Other” category under “ Medical facilities construction.” N ote : Because of rounding, sums of individual items m ay not equal totals. Source: See table 1. chasing power of a benefit awarded in 1940 was only 60 percent of what it had been in the earlier year. The difficulties encountered in Congress in getting serious attention and action on social security were, indeed, one major reason unions exerted increasing pressure for pensions and other benefits in bargaining. The 1950 amendments of the Social Security Act restored the value of the benefits with an average increase of more than three-fourths for those on the rolls and somewhat raised the level of benefits for most of those who would be eligible in the future. They also extended coverage to most non farm self-employed persons, some hired farm workers and domestic workers, most employees of nonprofit organizations, and employees of Federal, State, and local governments without staff retire ment protection. Subsequent major amendments in 1954 and 1956 extended coverage still further, until today the only groups not covered or eligible for coverage are Federal employees under the Civil Service Retirement Act, self-employed physicians, persons earning less than $400 a year, and workers in certain types of casual and part-time employ ment. Since 1951, railroad workers have been in effect, jointly covered under OASDI and the Rail road Retirement Act. 690 The risks covered have also expanded. Perma nent disability benefits were added to the system gradually, starting in 1954, with a simple waiver of premium which kept disabled workers from losing their rights to old-age retirement and survi vor benefits. In 1956, cash disability benefits were provided for workers 50 to 64 years old (and for disabled children under 18 or older if the disa bility began before age 18). In 1958, benefits were provided for dependents of disability bene ficiaries, and in 1960, the age restriction was removed. For persons who are not disabled, the setting of an age at which substitute income in the form of retirement benefits should be available to those who stop working must be somewhat arbitrary. Age 65 has become the standard age in most social insurance systems and, in this country, in most private pension plans. However, the average age of retirement has been closer to 67, and some persons continue working well beyond this. Others find themselves pushed into retirement before age 65 by automation or technological change or for other economic reasons. The pressure for payment of social security benefits prior to age 65 started with the problem of wives' benefits. Since wives are typically about 3 years younger than their husbands, many men were economically unable to retire until some years after they reached 65, when their wives also could draw benefits. The 1956 amendments made it possible for wives (and in fairness, women workers) to draw actuarially reduced benefits at 62. Wid ows were given full benefits at 62. In 1961, the law~ was again amended to enable men to draw reduced benefits at 62. Thus older men who find themselves shut out of the labor market will have some continuing income. At the end of 1962, benefits were being paid to 411,000 men between 62 and 64, 20 percent of those in this age group. Unemployment Insurance. Unemployment insur ance has undergone fewer basic changes since 1935. All States had unemployment insurance programs in operation by 1937. In all States coverage has been extended from establishments with eight employees or more to establishments with four or more. At the end of 1962, 20 States covered i See Helen H. Lamale’s and Philip Booth’s articles on pp. 676-686 and 622-629, respectively, in this issue. See also Alfred M. Skolnik, “Income-Los Protection Against Short-Term Sickness, 1948-61,” Social Security Bulletin, January 1963, pp. 16-20. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 establishments with one employee or more. Fed eral civilian employees were first covered by amendment of the Federal Unemployment Tax Act in 1954, and military employees in 1958. At the end of 1962, about four-fifths of all civilian wage and salary workers were covered by unem ployment insurance, compared with about twothirds at the end of 1939. The maximum duration of benefit payments, generally 13 weeks in 1937, has been substantially increased to at least 26 weeks in most States and to 30 or more in nine States. Eligibility condi tions have generally been tightened, and benefit amounts have been raised but not commensurately with increases in wage levels, particularly for those with higher than average earnings. Special Fed eral extended benefits have been provided during the past two recessions. Temporary Disability Insurance. During the 1940’s, legislation providing temporary disability insurance benefits was enacted in four States and for workers in the railroad industry. Since then public programs covering the risk of income loss caused by short-term illness have not expanded. There has been a significant increase in paid sick leave and voluntary sickness insurance largely under collective bargaining arrangements.1 Private Employee Benefit Plans. Private pension plans supplementing OASDI have increased rap idly since 1950 and now provide a continuing income to 2 million persons, most of whom are over age 65. The cash income maintenance benefits paid under all types of private employee plans in fiscal 1963 amounted to a little more than onesixth of all cash benefits under social insurance programs. Private employee benefit plan expen ditures for income maintenance benefits in fiscal 1950 and fiscal 1963 are estimated as follows: Private employee benefit plan payments (in mil lions) Fiscal years 1960 m s 0 estimated) Total................................................................... Retirement................................................................... Temporary disability i............................................... Supplemental unemployment_________________ Life insurance, death, and accidental death and dismemberment___________________________ $965 $4,520 335 2, 200 ggo no 33o ________ 3qo j 350 Includes paid sick leave and excludes benefits paid through private carriers under the compulsory temporary disability insurance programs in California, New Jersey, and New York. 1 SOCIAL EXPENDITURES AND WORKER WELFARE In addition, private employee benefit plans paid about $5.4 billion in health insurance benefits for workers, their dependents, and in a few cases, retired employees in fiscal 1963. Comparable expenditures in fiscal 1950 were about $660 million. Public Assistance. However comprehensive and adequate social insurance and supplementary pri vate benefit plans may be, there will always be some individuals who fail to meet the eligibility requirements or whose needs are unusually great or arise from causes not covered by the insurance programs. If a society wishes to assure that no one is forced to live below a designated minimum level, it must have some form of social assistance or public assistance program designed to take care of current need whatever its origin. In the United States, public assistance started as a local responsibility. Aid for special groups, such as the blind, widows and orphans, and the aged, was provided by a number of States before the 1930’s. During the depression, the Federal Government extended temporary emergency as sistance on a broad basis. The Social Security Act of 1935 established a permanent program of Fed eral matching grants to States for old-age as sistance and aid to the blind and to dependent children. Federal grants for aid to permanently and totally disabled persons were added in 1950. In 1961, aid to families with dependent children was broadened (for 1 year, extended in 1962 for another 5 years) to include needy children of unem ployed parents. Needy persons who do not fall within one of these categories must look to State or more frequently to local programs for help. The level of assistance payments is determined by the States and it varies greatly, with the largest differences occurring in general assistance sup ported entirely by State and/or local funds. In recent years, a substantial and increasing part of total assistance expenditures has gone for pay ments for medical services. Of the total expendi tures for public assistance (including general as sistance) in fiscal 1963, 54 percent came from Federal funds and 46 percent from State and local funds. Income and Income Maintenance Payments By whatever measure one chooses to use, there is no doubt that social insurance and related pro https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 691 grams in this country have come to occupy a sig nificant place in the economy and in the lives of individual workers and their families. There is also no doubt that these programs fall consider ably short of their potential contribution. In fiscal 1963, aggregate benefit payments under social insurance and veterans’ programs will amount to about 8 percent of all personal consump tion expenditures (and to about 7.6 percent of total disposable personal income, but since such benefits are usually spent and not saved, the for mer relationship may be more meaningful). There have been several occasions in recent years when employment and production were declining, that the income going to individuals and families through these programs has prevented a drop in aggregate personal incomes and in personal con sumption expenditures. When one looks at the proportion of wage loss covered, however, the limitations of the current programs appear. A number of recent studies, using varying degrees of refinement in their meth ods of estimate have come to the conclusion that unemployment insurance has been compensating no more than 20 to 25 percent of the total wage loss from unemployment. Some of the uncovered loss is that of young persons newly entering the labor market who find themselves out of a job before they have been able to build up benefit rights and that of workers who remain unemployed beyond the maximum weeks for which they can draw benefits. There are also several million em ployees whose jobs are not covered. And for many workers who do receive benefits, the amounts are much less than half their previous earnings. If unemployment benefits amounting to two-thirds of previous earnings had been payable in 1961 for as long as 39 weeks to all workers eligible under existing laws total benefit payments—assuming the same level of unemployment that actually prevailed—would have been more than $1 billion higher than the $3.4 billion actually spent for unemployment benefits in that year, according to a recent estimate of the Social Security Adminis tration’s Division of Research and Statistics. The situation with respect to workmen’s com pensation is similar. To bring benefits in all States up to the levels of those in the more liberal States would increase current expenditures by perhaps $700 million a year. To provide tem porary disability insurance benefits to all em- 692 ployees under public programs would of course require a very substantial increase in expenditures, since only four States and the railroad retirement system now provide for such benefits. It is esti mated that in 1961 about 28 percent of wage loss caused by short-term sickness and disability (up to 26 weeks) was compensated for under public and private benefit plans combined. In mid-1962, about four-fifths of all persons 65 and over were receiving a regular income under OASDI or a special public retirement program (including the veterans’ program). Private pen sioners and their wives represented about 15 per cent of the total aged population, and their pensions mostly supplement the benefits provided under public programs. Compared with 1950, when less than 30 percent of the aged were receiv ing benefits from social insurance or related pro grams, this represents a considerable advance in the extent of income protection for the aged. In evaluating the level of retirement, disability, and survivor benefits going to individuals, it is easiest and most useful to look at the national OASDI program. At present, the OASDI bene fit for a worker with average earnings represents a little less than a third of his preretirement earnings, and for a couple both 65 years old or over, the benefit is about 48 percent of the spouse’s previous earnings. A worker who had very low or inter mittent earnings during his working years may receive benefits equal to 80 percent or more of those earnings. But these persons are unlikely to have any income except public assistance. A man who had been earning $7,500 a year would get an OASDI benefit equal to only onefifth, and he and his wife together would get less than one-third of his previous earnings. Some beneficiaries of course have savings; two-thirds of the couples and more than one-third of the other beneficiaries own their own homes, usually mort gage free. Between one-fifth and one-fourth of the retired worker beneficiaries (or one-sixth of all beneficiaries) receive private pensions as well. But in the two national studies made in 1951 and 1957,2 about one-fourth of the beneficiaries had little or no cash income other than OASDI. Because the contribution income of social insurance programs automatically reflects increases in wage levels, below the taxable earnings ceiling, a social insurance system can raise benefits as the general earnings level and the level of living https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 of the population rises without increasing the rate of contribution (expressed as a percent of payroll). Although benefits under social insurance programs in this country have been adjusted at fairly frequent intervals, for workers with average or above average earnings, the benefits paid under most of our social insurance programs now replace a smaller proportion of the wage loss than was the case in 1940 or even in 1950. The primary reason is that statutory maximum dollar benefit amounts and the taxable earnings base in OASDI have not been raised proportionately with increases in wage levels. While workers with lower than average earnings have fared relatively well as minimum and lower bracket benefits have been raised and benefit duration (for unemployment insurance) increased, the programs have thus tended to become comparatively less adequate for the skilled higher paid workers. The adequacy of our existing public assistance programs can be measured in various ways. One recent study 3 used as a standard of need twice the amount of a low-cost food budget as calculated, with regional variations, by the U.S. Department of Agriculture. To meet this minimal standard, in 1958, assistance payments for families receiving aid to dependent children would have had to be increased for the country as a whole by 72 percent—in the West by 27 percent and in the South by 149 percent. It was estimated that to provide an income of twice the cost of a low-cost food budget to all persons on the public assistance rolls in 1958 would have required expenditures of $1 billion more than the $3 billion actually spent for public assistance by all levels of govern ment in that year. No estimate was made of the number of additional persons who would qualify as needy if standards were raised, nor of the amounts that would be required to meet their needs. Public Services The re al income of many, perhaps most, families in the United States includes the benefits of a variety of public services. * See Margaret L. Stocker, “ Old-Age and Survivors Insurance Beneficiaries: Income Id 1951"; and "Income o* Old-Age and Survivors Insurance Benefici aries: Highlights From Preliminary Data, 1957 Survey,” Social Security Bulletin, June 1953, pp. 11-18, 35, and August 1958, pp. 17-23, respectively. »Ellen J. Perkins, “ Unmet Need in Public Assistance," Social Security Bulletin, April 1960, pp. 3-11. SOCIAL EXPENDITURES AND WORKER WELFARE 693 Education. One of the critical social policy strug gles in the early history of this country centered around the question of universal tuition-free public education. The labor movement of the 1830’s and 1840’s provided much of the strength and drive for publicly supported education for the children of the workingman as well as the landed and com mercial aristocracy. Working families as well as the Nation have benefited from public support of education, first at the elementary level, then in public high schools, and more recently college, graduate, and technical education and training. In fiscal 1963, public expenditures for education were estimated at a little over $22 billion—the equivalent of 6 percent of all personal consumption expenditures. About four-fifths of our total national expenditures for education come from public funds (almost 90 percent of current expendi tures for elementary and secondary education and just under 50 percent for higher education). In 1950, when large numbers of veterans were using their educational benefits, 80 percent of all ex penditures for higher education were public expenditures. Public and private expenditures in fiscal 1950 and the preliminary estimates for fiscal 1963 are shown in the following tabulation: ployed businessmen). For families with children from 6 to 17 years old, the average benefit was about $570 a year, or 7.7 percent of the gross dis posable income of these families. The ratio of benefits to income was generally higher among low-income and nonwhite families. The absolute amounts of the benefits, and presumably the quality of education, tended to be higher for highincome families, however. The study also an alyzed the impact of property taxes on different groups of families. The general conclusion reached was that free public education is a power ful redistributive force, both in the short run for parents and later through its effect on the future earnings of the children. The upgrading of the level of skill and education of the population is also coming to be recognized as a major factor in increasing overall productivity and economic growth. Expenditures for education (in millions) Fiscal years I960 1963 ( e stim a te d ) Public expenditures >.......................................... Current operations.......................... Elementary and secondary_________ Higher and other__________________ Veterans______________________ Construction.................................................. $9,314 7,984 4,696 3,288 2,689 1,329 * $22,106 18,445 15,586 2,859 100 3,661 Private expenditures........................................... Current operations...... ................................. Elementary and secondary................... Higher and other__________________ Construction_________________________ 1,589 1,308 507 801 282 5, 6 6 6 5,052 2,057 2,995 614 1 Excludes expenditures for school health. Includes $23 million spent for training and retraining of adults under the area redevelopment and manpower and training programs. 2 N ote: Because of rounding, sums of individual items may not equal totals. It is difficult to measure the distribution of benefits from public expenditures for services. A recent study conducted by the Survey Research Center at the University of Michigan 4 attempted to calculate the average (mean) public school benefits accruing to families in the survey (other than families headed by farmers and self-em‘ James N. Morgan and others, Income and Welfare in the United States (New York, McGraw-Hill Book Co., Inc., 1962). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Health Services. New medical discoveries and increasingly complex medical technologies have, over the past 10 or 15 years, drastically affected the relations between medical expenditures and family budgets. Medical care is a more powerful determinant of life and death or of the extent of disablement than ever before. The aggregate costs of medical service have risen far faster than total consumption expenditures. Public and pri vate expenditures for personal health services represented 5.5 percent of total disposable personal income both in fiscal 1935 and 1950, and 7.6 per cent in 1963. Health costs have always fallen unevenly on different families, but the inequality of costs for those who have little illness and those who experience one serious illness or more during a year is probably increasing. It is not surprising that both public expenditures and private insur ance and prepayment arrangements for health care have been expanding. Most of the personal health services provided from public funds are for special groups—veterans, military personnel, crippled children, infants and pregnant women, and persons receiving public assistance. State hospitals for mental illness and, until the most recent years, tuberculosis, and munic ipal or State-operated general hospitals account for a large share of the total. The medical care paid for as a result of workmen’s compensation laws is treated as a public program expenditure in this accounting (table 4). 694 MONTHLY LABOR REVIEW, JUNE 1963 Private expenditures for medical care and other health purposes amounted to $25.3 billion in fiscal 1963. The relative importance of public and pri vate expenditures and of insurance payments is indicated in the following tabulation: Percent of total health expenditures Fiscal years 1935 Public expenditures........... Direct payments................. Private insurance benefits. Expenses for prepayment A n o th e r ........................... 1950 21 77 2 1963 (estimated) 27 58 7 2 6 25 45 21 3 6 » Difference between insurance premiums and insurance benefits, including costs of administration, reserve accumulation, and profits of insurance car riers. Currently about three-fourths of the private health insurance benefits are paid under private employee-benefit plans, about 30 percent of which are collectively bargained plans. Other Services. The programs combined in table 1 under Other Welfare Programs include a variety of services, each important for special groups in the population. In fiscal 1963, the Federal and State Governments spent an estimated $160 mil lion for vocational rehabilitation services, includ ing cash allowances, medical care, and counseling and training. Child welfare services, such as family counseling, adoption and foster home serv ices, and protective services for neglected or de linquent children, accounted for $250 million. About $597 million was spent for institutional care (in other than medical institutions), and $474 million for the school lunch program (the cost of surplus food for needy persons and of pilot food stamp plans in operation in a few localities is in cluded with public aid). In table 3, a service of growing importance— the public employment service—was combined with unemployment insurance. These two pro grams are, of course, inseparably linked. In creasingly, however, we are recognizing that the employment service must put as much or more effort into job counseling and placement for those workers who are not protected by unemployment insurance, the new, young entrant to the labor market, the older worker displaced by automation who has exhausted his unemployment benefits, the disabled, the person with limited education, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and the member of a minority group blocked from employment by discrimination. Under the stimulus of the Area Redevelopment Act of 1961 and the Manpower Development and Training Act of 1962, the public employment service is broaden ing the scope of its general manpower activities. Employment service, as distinct from unemploy ment insurance, expenditures amounted to $362 million in 1950 and $414 million in 1963. The latter figure includes $14 million financed under the area redevelopment and manpower develop ment and training programs. (The combined unemployment insurance and employment service figure includes $45 million in subsistence and allowance payments under these training pro grams.) In Conclusion In terms of aggregate national expenditures or individual family budgets, social welfare ex penditures are increasingly significant. Takehome pay is a smaller proportion of calculated labor income than it was in the 1920’s or 1930’s. But the great majority of workers can now count on an assured retirement income, on continuing income in the event of short-term or severe disability or unemployment of short duration, and on benefits for their survivors. Most workers have some protection against medical costs through private health insurance. Special groups receive not inconsiderable amounts of medical care paid for from public funds. Publicly provided education, with all its inad equacies, continues to open the door of oppor tunity for children in all types of circumstances. Adult education and technical training are bright ening the prospects of many now in their middle years or older. There are gaps in the amount of protection and the extent of coverage of programs. The amount or quality of the benefits is frequently less than it might be or low by any standard. The im portant fact may be that we have the mechanism, the established social institutions, through which we can provide more adequate cash incomes and a broad range of social services whenever we decide that these areas of life should be strength ened. The Economic Base and Limits of Social Welfare G erh ard C olm * W h e n the U.S. Department of Labor was estab lished 50 years ago, the Federal Government had hardly any responsibility for workers’ security and welfare. Some State and local governments and some philanthropic organizations were engaged in programs for labor welfare. The Federal labor program, however, was concerned only with col lecting statistical and other information on labor conditions in general and child labor specifically, with occasional mediation in management-labor conflicts of national impact, and with immigration as it affected the labor market; welfare expendi tures were negligible. Actually, the main body of the U.S. labor move ment rejected suggestions that the Federal Gov ernment should provide for social insurance, following the lead of European countries, which already had moderately developed social security systems. The unions preferred to rely on the workers’ individual and collective self-responsi bility, undisturbed by an intrusion of a paternalis tic state. Labor maintained this attitude until the depression of the 1930’s dramatically demon strated that economic conditions could create hazards far beyond those which the individual worker or his union or the States could meet with the resources at their disposal. The social security legislation of the 1930’s was a response to the conditions of the depression, but in a more funda mental way it can be said that the depression broke down resistance to the broad social security https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis legislation which is an essential feature of a modem industrial society. Since the end of World War II, there has been increasing trust that the Government, with its responsibility under the Employment Act of 1946, is determined and able to combat depressions of the duration and severity of that of the 1930’s. However, the rapid technological advances of the last decade have created additional sources of insecurity. Furthermore, the individual needs of workers and their families for more adequate pro vision for education, health, recreation, employ ment security, and old age have become more widely recognized and more articulated. Social security and welfare programs expanded in the postwar period on the Federal and on the State and local levels, both in number of bene ficiaries and dollars disbursed. The increase remained small, however, in relation to the rise in total production of goods and services. In the West European countries, a much larger share of total production is allocated to the bene ficiaries of government social programs. For a comparison, presented in table 1, we have selected Sweden, which is often considered the country most advanced toward the “welfare state,” and Germany, which is often considered the nearest approximation to a “free enterprise” country. Actually, the relative size of social security and welfare expenditures is nearly the same in both countries, and in both countries, far higher than in the United States. The estimates in table 1 include only government social insurance and welfare programs, not voluntary or contractual private pension provisions, which are substantial in the United States and Germany and of lesser importance in Sweden. The development of social insurance and welfare programs in the United States has certainly not come to an end. As indicated in the preceding articles in this volume, there is still a great deal of unfinished business in this respect. The pace of that development will be hammered out in the political arena and influenced by the relative strength of various vested interests. This does not mean, however, that there is no place for a detached humanitarian point of view and for economic and social analysis. In a pluralistic •Assisted by Barbro Salaj. Dr. Colm is Chief Economist of the National Planning Association. 695 696 MONTHLY LABOR REVIEW, JUNE 1963 T able 1. S o c ia l S e c u r it y a n d W e l f a r e E x p e n d i t u r e s 1 o f C e n t r a l a n d L ocal G o v e r n m e n t s as P e r c e n t o f G r o s s N a t io n a l P r o d u c t , U n it e d S t a t e s , G e r m a n y , a n d S w e d e n , S e l e c t e d Y e a r s ,2 1935-62 Y earJ U n ited States G erm any (Federal Sw eden R epublic) 1935-40 ............................................... 1950....................................................... 1956..................................................... 1958....................................................... 1959 .................................... .............. I960 1961... ............................................... . 1 9 6 2 .............................................. s 6.5 6.1 5.3 6.7 7.0 6.9 7.6 5 7.6 *6.0 12.0 14.1 13.6 10.8 11.9 12.0 12.2 * 12.6 « 12.7 1 Includes expenditures for social insurance, public aid, health and medical programs, veterans’ programs, public housing, and other welfare services (e.g., vocational rehabilitation, school lunch program); excludes expenditures for education. Because of differences in concepts, the comparison is only of approximate validity. 2 Fiscal years for United States and Germany; calendar years for Sweden. s Average of fiscal years 1935 and 1940. 4 Reichsgebiet, fiscal year 1938. * Preliminary estimate. Source: United States—1935-61, Social Security Bulletin, November 1962, p. 4; 1962, estimate of Research and Statistics Division, Social Security Administration, U.S. Department of Health, Education, and Welfare. Germany—official estimates of the German Minister of Finance. Sweden— The Cost and Financing of the Social Services in Sweden in 1960 (Stockholm, National Social Welfare Board, 1962). society—if not in every society—several objec tives are pursued, such as economic growth, individual well-being, fairness in the distribution of goods and leisure, a secure national position in a world at peace. Economic analysis can dem onstrate to what extent policies adopted in pursuit of one objective may, at the same time, either enhance or come in conflict with other objectives. It is the purpose of this article to identify some of the considerations which should be taken into account in evaluating the Government’s responsi bility for workers’ security and welfare. The Economic Requisite If we succeed in making reasonably full use of our rapidly rising potential in productivity and production, the “social problem” appears solvable. Here, however, the economist must consider whether the additional welfare programs that become feasible as production rises in accord with capabilities may interfere with the incentives and motivations which keep our economic system going and thus prevent full utilization of productive capabilities and cause a slowdown in our rate of growth. With respect to the past, it would be difficult to prove that the rise in the welfare programs has interfered with high employment and a larger rate of growth. It is more plausible to argue that the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis welfare programs have introduced an element of stability into our economic system and were one of the factors preventing postwar recessions from developing into depressions. For example, during the 1960-61 recession, personal incomes continued to rise although production declined. That per sonal incomes and consumer expenditures cush ioned the impact of the recession was in part due to the fact that social insurance payments and Government welfare expenditures rose Thus, old-age and survivors’ insurance benefits and State unemployment benefit payments rose from a seasonally adjusted annual rate of $13.6 billion in the second quarter of 1960 to $16.9 billion in the second quarter of 1961. Many of those who with drew from the labor force because of age or disabil ity or who were temporarily unemployed received at least a minimum income and thereby contrib uted to a relative steadiness in consumer markets. With respect to the future, an increase in welfare programs if properly dosed and timed may support economic growth and thereby help to strengthen its own economic basis. If improperly dosed and timed, however, such an increase in welfare pro grams could interfere with economic growth and thereby- become self-defeating. Conversely, in connection with programs in support of economic growth, social security and welfare measures may become feasible which would be oppressive if associated with policies of economic restriction. Many of our social security measures originated during the 1930’s, when depression psychology dominated much of the thinking. Hours of work were reduced, not primarily to enrich the life of the worker and to increase his productivity but to spread available work opportunities among those seeking employment. Old-age insurance was wel comed by many, not only to permit the aged a well-deserved pension but also to enable older workers to make a place for unemployed younger workers. Technological advances were viewed primarily as a threat to employment and even a special tax was proposed, although not enacted, to slow down the adoption of laborsaving techno logical advances. Again today, although the unemployment rate is but a fraction of the rate during the depression, the country is experiencing substantial chronic unemployment, rapid advances in laborsaving technology, and a continuing reduction in the farm population. It also faces the prospect of unprece- THE ECONOMIC BASE AND LIMITS OF SOCIAL WELFARE dented additions to the labor force. During the last decade, the increase in the number of people seeking employment, particularly nonagricultural employment, has exceeded the increase in job opportunities, with the result that the unemploy ment rate has risen slowly, labor force expansion has slowed down, and the number of workers involuntarily working short hours has increased somewhat. In consequence, there is again a drive for a shorter workweek and a growing concern with job security reflected in union demands for “controlled” adoption in laborsaving technological and managerial advances. It is one question to ask what the economic burden of adequately providing for workers' security would be, assuming that the slow prog ress in the opening up of job opportunities be continued. It would be another question to ask what the result would be, assuming that through a combination of monetary, fiscal, and related policies a faster rate of growth and a more adequate creation of new job opportunities is achieved. The expansion in security and welfare measures which we can “afford” depends to a large extent on the answers to these questions, namely whether a slower or faster rate of economic growth can be expected for the foreseeable future. It also depends on the international economic relations of the American economy. As a matter of fact, the need to provide more adequately for workers' security and welfare is a powerful argument in favor of a policy in support of economic growth. Entirely apart from human itarian considerations, inadequate growth would create a rising burden of social security and welfare expenditures; that is, needed expenditures in relation to the national income or product, and consequently the burden of taxes would rise. Furthermore, a rising trend of unemployment would make labor demands for shorter hours almost irresistible and would buttress labor attempts to control laborsaving technological and managerial advances. All such developments might not only impede our economic growth and reduce our ability to meet urgent domestic tasks but also worsen the international competitive position of U.S. industry by raising costs of production. i Using the Council of Economic Advisers’ estimate of potential GNP in the Economic Report of the President, Transmitted to the C o n g re s s , J a n u a r y 1962, p. 61. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 697 In contrast, a satisfactory rate of growth would make it possible to reduce unemployment, to open up job opportunities in compensation of laborsaving advances, and to increase social security benefits and welfare programs without a corresponding increase in tax rates. Labor demands for restrictive measures would have less persuasiveness and force. If we could assume that approximately full use would be made of the potential production of our economy, we could hardly fail to conclude that we could “afford” more adequate provision for the aged, the unemployed (including those who have no skills or whose skills have become obsolete), the disabled, and the sick. In the last decade, we could have produced about $22 billion 1 more each year, on the average, if we had succeeded in keeping unemployment to a reasonable mini mum. Assuming that 50 percent of this potential increase in production would have been needed to supply the additional wage earners with more consumer goods (wages being higher than receipts of the unemployed) and to provide for additional expansion and maintenance of plant and equip ment which would be needed to achieve the higher rate of growth, this would have made about $11 billion per year available for other public and private purposes. If future production of goods and services should increase each year by, say, 4- 4)2 percent, this would mean an additional increase of $20— $25 billion. Granting that again a part of this increase would be “preempted” for wages and the expansion and maintenance of productive facilities, welfare programs could nevertheless be expanded by very substantial amounts without any redistribution of incomes. This assumes, of course, that the increase in pro duction is not fully absorbed by other claimants, as for example, a rapidly rising defense program. The Economic Limits In an economy growing at a satisfactory rate, a substantial but not unlimited increase in security and welfare expenditures is feasible. To explore some of the limits for such programs, the require ments of a growing economy must be examined. There is first the age-old conflict between re sources that can be made available for current personal consumption and those needed for addi tional capital outlays in the interest of growth 698 MONTHLY LABOR REVIEW, JUNE 1963 T a b l e 2. F e d e r a l E x p e n d i t u r e s f o r S o c ia l I n s u r a n ce and W e l fa r e P rogram s and T otal F ed e r a l E x p e n d i t u r e s , F is c a l Y e a r s 1940 a n d 1963 [Millions of dollars] Item 1940 1963 * Welfare expenditures1 financed by general revenue____________ _____ 2,894 Other expenditures financed by general revenue. 6,161 11,042 83,269 8,148 77,108 Total administrative budeet, exnenditnres 94,311 85,256 Social insurance expenditures financed by special employment taxes____________ . . Total cash payments_____________ Welfare expenditures as percent of administrative budget......... ............... Welfare and social insurance expenditures as percent of total cash navments 9,055 Increase, 1940-63 350 19,691 19,341 9,600 116,774 107,174 32.0 11.7 9.6 33.8 26.3 25.6 1 Preliminary estimates. ^Includes expenditures for public aid, health and medical programs, other welfare programs (e.g., vocational rehabilitation), and veterans’ pro grams; excludes expenditures for education. Source: U.S. Department of Health, Education, and Welfare; Social Security Administration: Social Security Bulletin, November 1962. p. 5; Division of Research and Statistics, and the U.S. Budget. and increased future consumption. This factor is of crucial importance for the so-called under developed countries. It is of less significance in the United States because full utilization of currently underemployed resources would permit a substantial increase in security and welfare ex penditures, and at the same time, an increase in capital outlays. Actually in the industrial nation, a slight relative decline in the share of investment in plant, equipment, and inventories tends to be compatible with economic growth because of simultaneous productivity increases for both labor and capital. Furthermore, if the definition of capital outlays could be broadened to include all current outlays which contribute to economic growth, it would sharpen judgments on the desired balance between outlays for consumption and for capital in the broadened definition. Outlays for public health, education, training, research, are designed for the benefit of individuals whose life is enriched, but in some part, they can also be regarded as in vestments in the future which increase the pro ductivity of labor. Similarly, some support for residential construction not only brings decent housing within the reach of low- and middle-income families but also adds to the mobility of labor and thereby contributes to economic growth. This line of reasoning should not, of course, lead to the conclusion that we need not be concerned with adequate investments in the conventional defini tion, particularly in the expansion and moderni https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis zation of plant and equipment, nor that every increase in welfare outlays also contributes to economic growth. Increases in physical capital and improvements in health, skills, and knowledge should be complementary. Nevertheless, the fact that certain outlays at the same time serve human welfare and promote economic growth increases the limits within which an expansion of welfare services is not only desirable but also eco nomically feasible. A related question is whether expansion of wel fare and security measures may interfere with the amount of savings needed in a growing economy. When social insurance programs were first adopt ed, fear was often expressed that provision for old age and other contingencies might reduce the individual’s motivation to provide for private in surance and for savings. Actually, the opposite has happened, as the preceding article demon strates. Another question is whether the increase in pro gressive tax rates incident to the very large in crease in Federal expenditures since the period before World War II has reduced the savings available for future expansion and modernization, especially whether individual income tax rates in the higher brackets have reduced the supply of risk capital.2 As already mentioned, it cannot be said of the American economy in general that development is handicapped by lack of savings. Most of the capital required for business expansion and modernization of corporations is provided by undistributed profits and accrual of depreciation allowances. Also the annual accrual in private and public social insurance and welfare funds is so large that it probably has offset, if not more than offset, the reduction in savings which could be attributed to the tax requirements for finan cing social security and welfare programs. In considering how much this reduction might be, we should estimate what part of the total increase in expenditures is attributable to social security and welfare programs and what part to other pro grams, particularly to national defense. Table 8High individual income tax rates combined with lower rates on capital gains provide to some extent an incentive for investments in risky ventures, e.g., in “ growth stocks.” Also a high corporate tax rate is an incentive for engagement in risky undertakings by high profit corporations. On the other hand, there is an incentive for wealthy individuals to invest in tax sheltered securities, such as tax exempt municipal bonds. There is no doubt that the increase in tax rates had a profound effect not only on the amount but also on the type of saving which is forthcoming. It is, however, by no means certain what the net effect has been. THE ECONOMIC BASE AND LIMITS OF SOCIAL WELFARE 2 indicates that less than 10 percent of the in crease in total expenditures financed by general revenue is due to the increase in welfare programs. Welfare expenditures, in the fiscal year 1963, amounted to about 12 percent of the total Federal expenditures of the administrative budget. It is also relevant to estimate what part of the Federal general taxes (i.e., except employment taxes) is likely to be paid by the wealthy whose ability to save might thereby be reduced. In taxes paid by the wealthy, we have included be sides individual income taxes of people with gross incomes of $20,000 or more, all Federal estate taxes, one-half of corporate taxes (assuming that the other half is passed on to consumers), and 5 percent of excise taxes. The resulting estimate suggests that from total budget revenue of $85.5 billion in fiscal year 1963 about $24 billion, or 28 percent, were paid directly or indirectly by the wealthy. Assuming that 12 cents of every tax dollar is used for Federal welfare expenditures financed by general revenue it follows that $2.8 billion, or about one-fourth of these welfare ex penditures were financed by taxes of the wealthy. We assume that the employment taxes3 which finance social insurance are largely paid by em ployees, either by direct deductions from their wages or salaries or indirectly through lower wage and salary rates than they could command if employers did not have to pay employment taxes. Some part of these taxes also is passed on in higher prices and thus is paid by consumers in the lower and middle-income brackets. Only a small proportion, perhaps 20 percent, is assumed to be eventually borne by the wealthy through a squeeze on profits with the resulting effect on dividends and stock values. Combining the welfare programs financed by general revenue and the social insurance programs financed by employment taxes, we reach the con clusion that of the whole $30.7 billion expendi tures for social security and welfare in fiscal year 1963, possibly $5.6 billion, or less than one-fifth are directly or indirectly financed by the wealthy. The part of social security and welfare programs financed by the wealthy is even smaller if State 5Employment taxes in fiscal 1963 are estimated at $14.8 billion. « Ia m not discussing here the question of incidence of the employers’ share in social insurance taxes. However, I assume that, as far as labor costs are concerned, an increase in such taxes is largely equivalent to a corresponding increase in wage rates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 699 and local finances are included, because the tax systems of these governments are less progressive than that of the Federal Government. Nor can we expect any substantial change in those re lationships in the future. In our modern econ omy, the wealthy are only to a small extent “taxed for the benefit of the poor.” Actually, the fi nancing of security and welfare measures has become mainly a transfer of funds by employers and other members of the lower- and middleincome classes from the time they are earning a living, to the time they retire or find themselves in distress. Thus, it appears that only a minor part of any reduction in venture capital that has re sulted from the increase in taxes on the highincome brackets can be attributed to the increase in welfare expenditures. Security as Income and Cost Social security and welfare measures add to the real income of the beneficiaries and, at the same time, are an element of costs of production specifically an element of labor costs. Therefore, the economist should view them in relationship to rewards for labor in general, particularly wages and salaries, which are, on the one hand, one of the most important factors determining purchas ing power and demand in the economy and, on the other hand, one of the most important factors determining costs of production. If wages and salaries relative to prices are too low or rising too little, they fail to contribute to the dynamic balance between the potential increase in the pro duction of consumer goods and the demand for such goods. If wages and salaries are too high or rising too rapidly, costs of production are pushed up unless the rise is offset by cost-reducing tech nological and managerial advances. Wages and salaries or equivalent labor costs include basically three elements, namely, (1) the take-home pay which is used by the workers for their own consumption or for making their own provision for security through insurance or sav ing; (2) the expenditures by which the employer provides fringe benefits for the employee, and (3) that part of taxes or contributions4 which are paid to the Government to finance the social security and welfare expenditures. Thus, from the labor cost standpoint, if tax-financed social security and welfare measures are intended to be 700 raised rapidly, take-home pay rates and fringe benefits can be raised only less rapidly, and vice versa. An important factor in determining an economically feasible rate of expansion in security and welfare programs is the workers’ relative preference for a more rapid increase in wage rates, or in fringe benefits, or in tax-financed Govern ment social security and welfare programs.5 This statement is not meant to imply that there cannot be simultaneous increases in wage rates, fringe benefits, and security and welfare programs to enhance workers’ real income and well being. However, the combined effect of labor income and costs on the price level and international com petitiveness should be taken into account. The preference of the workers for relative advances in the three different avenues towards improved welfare is not the same for all categories of workers. Workers who have obtained relatively high pay scales often use their collective bargaining position for obtaining job security from the employer. Their interest in unemployment in surance benefits is less than that of workers who are in a weaker bargaining position and have lower pay scales. These differences complicate the formulation of policies. Also, over time, prefer ences of particular worker groups may change substantially. Over the last few decades, we have seen a dramatic increase in Government provision for workers’ security and welfare; in employers’ and unions’ provisions for supplementary pensions, medical care, and job security, and also in the in dividual worker’s ability and desire to buy private insurance and participate in voluntary savings schemes. There is doubt that the present mixture in the provision for security and welfare is the best possible one—there is for example, some question if the relatively large role played by private unfunded pension plans does not interfere with desired labor mobility. It is certain that the mixture of the three methods will change with the general rise in the standard of living. 4As noted previously, the largest part of the welfare programs are assumed to be financed by taxes paid directly or indirectly by people in the lowerand middle-income brackets. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 In Conclusion For advances in the security and welfare of labor as a whole, the most effective, if not the only truly effective, measure is a policy promoting economic growth. And a successful policy of economic growth, in turn, will increase both workers’ income and Government revenues—at existing or even lower tax rates. Increasing Government revenue directly increases the means available for financing additional Government welfare programs. How ever, more is needed than additional revenue to deal with the residual problems of poverty. For today, although wage and salary employees are distributed throughout the lower and middle brackets of the income pyramid and poverty is no longer a characteristic of labor per se, it has become increasingly a characteristic of specific conditions. The conventional welfare programs will not solve the problems of the adolescents looking for jobs without adequate schooling; they will not solve the problems of workers of advanced age who have been replaced by technological develop ments; they will not solve the problems of those suffering from racial discrimination or those lacking opportunities because of physical or mental handicaps; they will not solve the problems of workers in depressed areas. Specific programs have been initiated or proposed to deal with each of these causes of poverty, such as policies combating discrimination in employment practices, educa tional and training programs, drives for employ ment opportunities for the handicapped, for de pressed areas, the youth corps, and others. These programs require money which will become more easily available in an economy of satisfactory growth, but even more, they require tolerant and generous attitudes of management, labor, and the general public. With the technical knowledge of our age, we will have the material means available for eliminating poverty as a mass phenomenon. We can only hope that we also will develop the attitudes necessary to use these resources for the benefit of those who will not automatically benefit from economic growth and rising incomes and from the conventional security and welfare programs. Chronology of Worker Security, 1931-63 The Davis-Bacon Act provided for the payment of prevailing wage rates to laborers and mechanics employed on public construction. 1931 The Anti-Injunction (Norris-LaGuardia) Act limited the use of Federal injunctions in labor disputes and outlawed “yellow-dog” contracts. 1932 The Wagner-Peyser Act established the United States Employment Service in the Department of Labor with responsibility for coordinating State employ ment offices. 1933 Section 7(a) of the National Industrial Recovery Act provided that every NIRA code and agreement should guarantee the right of employees to organize and bargain collectively through their representative without inter ference, restraint, or coercion by employers. The National Labor Relations (Wagner) Act established as national labor policy the protection of workers’ right to organize and elect representatives for collective bargaining. 1935 The Social Security Act provided Federal old-age and survivors insurance and Federal-State unemployment insurance. (Wisconsin, in 1932, was the first State to effect an unemployment insurance program. By 1937, approved unemployment insurance plans had been legislated in every State.) The Committee for Industrial Organization (later the Congress of Industrial Organizations) was formed by several American Federation of Labor officials and inter national unions to foster industrial unionism. In the first large “sitdown” strike, the United Rubber Workers won recognition at Goodyear Tire & Rubber Co. 1936 The Public Contracts (Walsh-Healey) Act estab lished labor standards on Government contracts, including minimum wages, overtime compensation for hours in excess of 8 a day or 40 a week, child and convict labor provisions, and health and safety requirements. The railroad brotherhoods and major carriers signed the Washington Agreement which guaranteed employees 60 percent of their annual earnings for as much as 5 years, as well as relocation and other benefits, if they were displaced or demoted because two or more carriers con solidated facilities, operations, or services. The Railroad Retirement Act, providing old-age and permanent disability benefits, became law. Similar laws of 1934 and 1935 had been declared uncon stitutional. for its members. A 10-percent wage increase and an 8hour day, 40-hour week were negotiated. The Fair Labor Standards Act provided minimum wages, child labor standards, and time and a half for hours over 40 in a workweek, for workers affecting interstate commerce. 1938 The Crosser-Wheeler Act provided for payment of unemployment and sickness benefits to railroad workers. Rhode Island became the first State to effect a sys tem of temporary disability insurance. Similar programs were undertaken later in California, New Jersey, and New York. 1942 President Franklin D. Roosevelt created a Com mittee on Fair Employment Practices to “conduct hearings, make findings of fact, and take appropriate steps to obtain elimination” of “discrimination in the employ ment of any person in war industries or in Government by reason of race, creed, color, or national origin.” 1943 The National War Labor Board excluded certain benefits (merit increases, promotions, vacations with pay, holiday pay, night-shift bonuses, overtime pay, and ad justments in piece rates following a complete job réévalua tion) from the wage ceiling set forth in its “Little Steel” decision of 1942 which had limited wage raises generally to the cost-of-living increase from January 1941 to May 1942. The Railway Labor Act, authorizing labor union majority representation, was held by the U.S. Supreme Court to require union protection of minority members of the unit. (S teele v. L o u isv ille & N a sh v ille R a il 1944 ro a d .) The Employment Act of 1946 committed the Fed eral Government to the promotion of maximum employment, production, and purchasing power. 1946 A contract between the United Mine Workers of America (Ind.) and the Federal Government, which had seized the mines in a labor dispute, established a welfare and retirement fund for bituminous coal miners. The fund was to be financed by employer payments for each ton of coal produced by members of the UMW. The Labor Management Relations (Taft-Hartley) Act amended the National Labor Relations (Wagner) Act by restricting certain labor organization activities and recognizing the worker’s right to refrain from self-organization. 1947 1948 Mississippi was the final jurisdiction to enact work men’s compensation legislation. In 1911, 10 States 1937 enacted the first such legislation. United States Steel Corp. recognized the Steel Workers’ Organizing Committee as the bargaining agent The U.S. Supreme Court, by denying review of a lower court’s action, upheld, in effect, a decision that the Labor Management Relations (Taft-Hartley) Act requires employers to bargain with unions on retirement plans. (Inland Steel Co. v. United Steelworkers of America.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 701 MONTHLY LABOR REVIEW, JUNE 1963 702 The Social Security Act was amended to extend coverage to about 10 million more persons, includ ing most nonfarm self-employed. 1950 The U.S. Supreme Court upheld the right of the International Typographical Union to compel a newspaper to pay for the setting of type not used, and of the American Federation of Musicians to demand that a local “standby” orchestra be employed when a traveling orchestra was hired for an engagement. 1953 The Ford Motor Co. and the United Automobile Workers negotiated a 3-year agreement establishing a supplementary unemployment benefit (SUB) plan financed by company contributions of 5 cents an hour. By the end of the year, similar plans had been negotiated for more than a million workers, including the remainder of the automobile industry. 1955 The Social Security Act was amended to provide monthly benefits to permanently and totally dis abled workers aged 50-64 under the OASI program; pay benefits to disabled children (age 18 or over) of retired or deceased workers if disability began before age 18; allow retirement at the age of 62 with reduced benefits for women; and extend coverage to self-employed professional persons other than physicians. 1956 The Welfare and Pension Plans Disclosure Act required administrators of all health, insurance, pension, and supplementary unemployment compensation plans covering more than 25 workers to file plan descrip tions and annual financial reports with the Secretary of Labor, to be available for public inspection. 1958 The Labor-Management Reporting and Disclosure (Landrum-Griffin) Act provided a “bill of rights” for union members and amended the Taft-Hartley Act to limit organizational picketing and secondary boycotts. 1959 North Carolina became the 35th State to enact minimum wage legislation; the first to do so was Massa chusetts, in 1912. Amendments to the Social Security Act provided for payments to States whose plans for paying medical expenses of needy persons over 65 years of age have been approved by the Secretary of Health, Education, and Welfare 1960 agreed to contribute to a fund that will provide each fullyregistered longshoreman lump-sum retirement benefits and to guarantee minimum weekly earnings and no layoffs as a result of decreased work opportunities under new contract provisions that permitted extensive introduction of new equipment. The fund was not to protect long shoremen from reduced earnings resulting from a decline in business. The Area Redevelopment Act authorized Federal loans and grants to areas with “substantial and persistent unemployment and underemployment” for such purposes as construction and modernization of plants, improvement of public facilities, and retraining of workers and subsistence allowances during training. 1961 President John F. Kennedy created the President’s Committee on Equal Employment Opportunity which ex panded the Government’s efforts to abolish discrimination in employment by Federal agencies or Government con tractors and required for the first time the filing of periodic compliance reports. It replaced both the Committee on Government Contracts (established in 1954) and the Presi dent’s Committee on Government Employment Policy (established in 1955). Amendments to the Fair Labor Standards Act ex tended coverage to about 3.6 million workers, mostly in retail trade and construction. The Railroad Telegraphers negotiated a job pro tection agreement with the Southern Pacific Railroad which included a provision that no more than 2 percent of a specified number of jobs could be abolished in any year for any reason except line abandonment or a centralized traffic control plan. The Manpower Development and Training Act authorized a 3-year Federal program of occupa tional training for unemployed and underemployed workers. 1962 In M ir a n d a F u el C o., I n c ., and L o p u c h , a supple mental decision, the NLRB found employer and union in violation of the Labor Management Relations Act when the union arbitrarily downgraded an employee’s seniority, holding that the act gives employees the right to be free from “unfair or irrelevant or invidious treatment by their bargaining agent.” The Equal Pay Act prohibits wage differentials based on sex for workers covered by the Fair Labor Standards Act, beginning June 1964. 1963 In a contract with the Longshoremen’s and Ware housemen’s Union (Ind.), the Pacific Maritime Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Significant Decisions in Labor Cases* Labor Relations Determination of Jurisdictional Disputes. The National Labor Relations Board ruled1 that a newspaper’s composing room employees, repre sented by the Typographical Union, were entitled to disputed work involving a new photocompo sition process. The Board members could not agree on criteria for the determination and filed four opinions in the case, including two dissents. Photocomposition, a photographic technique of creating type, was introduced by the newspaper to replace the hot-metal casting process. The em ployer assigned the work, consisting of darkroom tasks and traditional composing room work, to members of the Typographical Union. The Newspaper Guild claimed that its contract re quired the assignment of photographers from the editorial department to the darkroom. In up holding the Guild’s grievance, an arbitrator refused to pass on the typographers’ rights under their union’s contract with the employer since the union was not a party to the arbitration. The typographers refused to process darkroom work done by members of other unions, and the employer filed an unfair labor practice charge with the Board. The Photo Engravers’ Union also claimed a portion of the work—that involving the making of certain copies. The majority opinion, signed by Chairman McCulloch and Member Fanning, stated that since the usual criteria applied in jurisdictional disputes are of no assistance in this case, the Board must use its “experience and common sense,” as suggested earlier by the U.S. Supreme Court, it noted that, as photographic processes gradually replaced the hot-metal methods of composition in the newspaper industry and threat ened the jobs of typographers, the Typographical Union instituted training programs to equip its members with the new skills they needed to retain their jobs. The opinion further noted that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis although the photographers and photoengravers have done darkroom work, they have never done it in connection with composing the newspaper. Assignment of the work to typographers by the employer caused neither the photographers nor the photoengravers to lose any work. If the assignment were overturned, however, employ ment would be taken away from members of the Typographical Union, and a new field would be open to members of the other union. The Board majority, therefore, declined to reverse the employer’s action. Member Rodgers concurred in the result and said that, whenever faced with contending claims of some validity, he would give “substantial, if not decisive, weight” to the employer’s assign ment of work. Member Leedom attacked the use of the two new factors in jurisdictional-disputes determina tions—“substitution-of-function” and “loss-ofjobs” tests—because they had no precedent. Under the “substitution-of-function” test, he argued, bricklayers rather than glass workers would be entitled to new work if glass were used to replace brick in the construction industry; he saw no reason to award new work requiring different skills to employees who performed old work. Since the Guild photographers had, for a long period of time, possessed the skills necessary to perform darkroom work, he would have awarded the work to them. While Member Brown did not endorse Leedom’s reasoning, he agreed that the work should be assigned to the photographers. Enforcement of Collective Agreements. The U.S. Court of Appeals for the Second Circuit held 2 that an employee must exhaust grievance and arbitration procedures established by a collective bargaining agreement before taking court action for damages resulting from an alleged breach of contract. An employee was discharged in apparent vio lation of a contract provision that employees with ♦Prepared in the U.S. Department of Labor, Office of the Solicitor. The cases covered in this article represent a selection of the significant decisions believed to be of special interest. No attem pt has been made to reflect all recent judicial and administrative developments in the field of labor law or to indicate the effect of particular decisions in jurisdictions in which contraryresults may be reached based upon local statutory provisions, the existence of local precedents, or a different approach by the courts to the issue presented. 1 L o c a l ? , P h ila d e lp h ia T y p o g r a p h ic a l U n io n and P h ila d e lp h ia I n q u i r e r , 142 NLRB No. 1 (Apr. 16, 19631. 2B e l k v. A l l i e d A v i a t i o n S e r v ic e C o . (C.A. 2, Mar. 25,1963). 703 704 at least 90 days’ service would not be dismissed without a “fair and impartial hearing.” The contract provided further that although the ini tial stages of the grievance procedure were to be prosecuted by the individual employee, arbitra tion could be demanded only by the company or the union. The plaintiff brought a damage suit for the alleged breach of contract in a Federal district court without filing a grievance. The court dismissed the suit and the employee’s appeal followed. The court of appeals noted the U.S. Supreme Court ruling in Smith v. Evening News Association3 that section 301 of the LMRA permits suits by individuals for breaches of collective agreements. In that case, however, the Court said that there were no arbitration procedures in the contract which had to be exhausted before taking court action. Here the court of appeals ruled that “where the collective agreement provides for arbitration by the union of the subject matter of the employee’s suit, the employee must look to his union initially for the vindication of his rights.” The court deferred the decision on what remedy the employee would have should the union refuse to prosecute his claim. The central theme of the court decisions relating to the enforcement of collective bargaining contracts, the appeals court observed, has been that the arbitration procedure agreed upon by the parties is the best method of settling disputes. The courts should be extremely cautious, the court stated, in interfering with private pro cedures for settlement of disputes. Airline Adjustment Board Awards. The U.S. Supreme Court held4 that Federal courts have jurisdiction to enforce awards of airlines system boards of adjustment because the boards are established pursuant to the requirements of the Railway Labor Act. The case was remanded to the lower court with instruction to take jurisdic tion of the matter. After refusing to attend disciplinary hearings without having a union representative present, six employees were discharged by an airline https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 19(53 company. Grievances over the discharges were eventually submitted to the board of adjustment established by agreement between the union and the airline as required by the RLA. When the four-man adjustment board also was unable to agree, the National Mediation Board appointed a referee. The board then awarded one of the em ployees reinstatement with back pay, but the airline refused to comply. When the suit for enforcement of the award was instituted, the Federal district court declined jurisdiction, ruling that the suit did not arise under the laws of the United States. The court of appeals affirmed the lower court’s decision on the basis that this was not a federally created cause of action. The Supreme Court noted the purpose of the RLA—to minimize interruptions in the Nation’s transportation services by labor disputes—and reviewed the efforts of Congress to improve the adjustment machinery in the railroad industry so as to prevent deadlocks and provide for en forcement of awards. From the language of section 204 of the act and from the act’s legisla tive history, the court concluded that the estab lishment of the adjustment boards by agreement between carriers and then- employees in the airline industry was clearly made compulsory and enforcible in courts. The Court ruled that the contracts setting up the adjustment boards pursuant to section 204 and the boards are the “creations of Federal law and bound to the statute and its policy.” The Court said that a contract under section 204 is analogous to one under section 301 of the Taft-Hartley Act and enforcible by Federal law. Moreover, the provisions of such a contract are to be construed in a fashion consistent with the statutory scheme of dispute settlement. The in tention of Congress was for the adjustment boards to act as public agencies, not “private go-be tweens,” and their awards were to be legally binding, not merely advisory. * 371 U.S. 195 (1962); see Monthly Labor Review, February 1963, pp. 174-175. « International Association of Machinists v. Central Airlines (U.S. Sup. Ct.„ Apr. 15. 1963). Chronology of Recent Labor Events April 5 T h e 1 2 6 - d a y Cleveland newspaper strike ended with the ratification of a contract amounting to $13.65 per week over 26 months by the Typographical Union, last of 11 unions to settle. It expires December 1, 1964. (See also MLR, May 1963, p. 555.) April 9 April 1, 1963 I n c r e a s e s averaging 10J4 cents per hour for 4 ,9 0 0 Mil waukee employees of Allen-Bradley Co. represented by the Electrical Workers (Ind.) became effective in settle ment of a wage reopening clause. Incentive workers’ base rates were increased 7 to 8 cents, and timeworkers, 10 to 12 cents per hour. A n a g r e e m e n t became effective between the United Packinghouse Workers and George A. Hormel and Co. which cuts by 104 the annually guaranteed hours of work for about 3,500 workers. (See also MLR, May 1963, p. 556.) April 3 T h e R a il r o a d Y a r d m a s t e r s signed an agreement with about 80 railroads on increases of $8 a month retroactive to March 3, 1962, and an additional percent retroactive to May 1, 1962, for about 4,000 employees. The contract also provided for a hospital, surgical, and medical program, effective May 1, 1963, to be financed by a $21.01 reduction in basic monthly pay rates. U n d e r t h e Walsh-Healey Act, a prevailing minimum wage determination of $1.65 an hour in the electric lamp industry was signed by Secretary of Labor W. Willard Wfirtz to take effect April 12. It applies to workers on projects having Government contracts over $10,000 and provides no exceptions for beginners or probationary workers. The prior determination for the industry was $1.26 an hour with a 6-cent tolerance for beginners for a period not to exceed 3 months. On April 22, Secretary Wirtz signed a determination setting a minimum wage of $1.52 an hour in the electronic equipment industry, effective May 4. Previously, the industry had been covered by a 1961 order setting $1.15 as the minimum wage for industries where no specific determination had been made. John F. Henning was named chairman and only government member of a 15-man Advisory Committee on Equal Opportunity in Apprentice ship and Training established by the Secretary of Labor. nder Secreta ry April 10 G. C r o s s , former president of the Bakery and Confectionery Workers’ International of America (Ind.), was convicted in a Federal district court of embezzlement of union funds and conspiracy to bribe the jury of his 1959 perjury trial. (Chron. item for Feb. 3, MLR, Apr. 1959; see also p. 714 of this issue.) J am es April 15 h e U.S. S u p r e m e C o u r t , reversing and remanding the case to the Fifth Circuit Court of Appeals, ruled that section 204 of the Railway Labor Act gives Federal courts jurisdiction of a suit brought to enforce an award made by an airline board of adjustment required under the act. The case was I n te r n a tio n a l A s s o c ia tio n o f M a c h in is ts et a l. v. C e n tra l A ir lin e s , I n c . (See also p. 704 of this issue.) T April 16 T h e N a t i o n a l L a b o r R e l a t io n s B o a r d awarded new photocomposition work on the Philadelphia Inquirer to members of the International Typographical Union, who had customarily done “hot metal” composing, over claim of the Photo-Engravers and Newspaper Guild, whose members had previously done the paper’s photographic work. Finding no criteria in precedent, two Board members adopted tests of “substitution of function” and “job loss” in arriving at the award. They were joined—• as to the award only— by a third member, with two dissents filed. (See p. 703 of this issue.) The case was P h ila d e lp h ia T y p o g r a p h ic a l U n io n , L o ca l 2 and P h i la d e lp h ia I n q u ir e r . April 4 U S e c r e t a r y o f L a b o r Wirtz issued Hazardous-Occupations Order No. 17 pursuant to the Fair Labor Standards Act. The order, effective May 9, makes excavation work, with certain exceptions, subject to the law’s 18year minimum age requirement for employment in oc cupations found by the Secretary of Labor to be par ticularly hazardous to minors. Among the exceptions is the employment of 16- and 17-year-olds in apprentice ship and student-learner programs. of L abor 686133—63------7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A 2- d a y s t r i k e b y 10,000 sugar workers in Hawaii was terminated when agreement on a 2-year contract was reached b y the International Longshoremen’s and Ware housemen’s Union (Ind.) and 23 sugar plantation corn- 705 706 MONTHLY LABOR REVIEW, JUNE 1963 panies. The contract provides a 15-cent-an-hour wage increase the first year with 10 cents more in the second. Previous base rates of pay ranged from $1.50 hourly to $2.30-%. It also provided for an agency shop, industry wide bargaining, medical benefits, a dental plan for children, an additional paid holiday (the day after Thanks giving), and 3 weeks vacation after 15 years of service. Pension benefits are to be at least 20 percent above the present schedules, with details subject to further negotia tion. (See also p. 710 of this issue.) April 22 antidiscrimination laws do not place unconstitutional burdens on interstate air carriers, the U.S. Supreme Court upheld a Colorado State order to Continen tal Airlines to offer a Negro applicant the first opening in a company-operated training school. The case was C o lo ra d o A n ti- D is c r im in a tio n C o m m issio n v. C o n tin e n ta l H o l d in g t h a t to succeed Stuart Rothman as NLRB General Counsel when his 4-year term expires May 13. April 25 C o m m u n ic a t io n s W o r k e r s of A m e r ic a and the Western Electric Co. agreed on a contract covering 17,500 telephone equipment installers in 44 States which included wage increases of 7 to 14 cents an hour. (See p. 713 of this issue.) The agreement was reached under a reopener and is to be effective until January 1, 1964. T he April 28 State A i r D in es. April 24 i r e s t o n e T i r e & R u b b e r Co. and the United Rubber Workers agreed on a proposed contract to increase tire employee wages by 16 cents over its 2-year term and to provide lesser increases for nontire workers. It also im proved supplemental unemployment benefits and partially removed interplant differentials. On April 25, Goodyear Tire & Rubber Co. and B.F. Goodrich Co. agreed to sub stantially the same settlement. (See also pp. 707-708 of this issue.) F P r e s i d e n t J o h n F. K e n n e d y appointed Arnold Ordman, a career lawyer with the National Labor Relations Board, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e T e a m s t e r s U n io n defeated for the second time a group of dissident members, the Voice of the Teamster Democratic Organizing Committee, which had sought to represent 7,000 over-the-road drivers in Philadelphia Local 107 and 1,000 members of three smaller locals in Delaware and Southern New Jersey. The second vote, 4,893 to 2,550, favored the Teamsters by a much larger percentage than the one taken in November 1962 and later set aside by the NLRB upon evidence of Teamster-inspired violence prior to the balloting. (See p. 713 of this issue.) T h e NLRB, i n I n te r n a tio n a l L a d ie s' G a rm e n t W o rk e rs’ U n io n and F e d era tio n o f U n io n R e p re se n ta tiv e s, held that the International Ladies’ Garment Workers restrained and coerced its staff employees in their efforts to form a union by soliciting employees to drop their membership in the staff union, threatening reprisals, and denying periodic wage increases (Chron. item for May 31, MLR, July 1962). The Board ordered the ILGWU to pay the amounts lost because of the withholding of the automatic increases, plus 6 percent interest. Developments in Industrial Relations* Wages and Collective Bargaining Rubber. In late April, the United Rubber Workers, bargaining for about 50,000 employees, and three of the Big Four rubber companies— Firestone Tire & Rubber Co., B. F. Goodrich Co., and Goodyear Tire & Rubber Co.—reached agreement on 2-year contracts to expire April 20, 1965. The three contracts provided tire employees average 9-cent increases effective June 10, 1963, and another 7 cents effective June 8, 1964. As in the 1961 settlements, nontire employees re ceived smaller increases—6X cents effective June 10, 1963, and the same increase on May 11, 1964. The agreements increased supplemental unem ployment benefits (SUB) and extended them so as to coincide with any increase in the duration of State unemployment compensation beyond 39 weeks. The contracts also improved supple mental workmen’s compensation for injured work ers. Newly created joint committees were empowered to discuss a variety of subjects of mutual concern including problems posed by the impact of technological changes in the industry. Under the Firestone agreement, the entire 9-cent increase for 1963 was to be applied as a general wage change at the Memphis plant. At each of the other tire factories, however, part of the wage increase was to be allocated for adjust ment of intraplant inequities and night work differentials, to be negotiated at the local plant level. The amounts to be used as general wage increases were 6X cents at Des Moines, 7 cents at Akron, 7% cents at Los Angeles, and 8 cents at Pottstown, Pa. The entire 6X-cent increase to nontire workers was to be applied as a general wage increase at Fall River, Mass., and Noblesville, Ind., but at New Castle, Ind., 1% cents was allotted for other adjustments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of the 1964 increases, only one-half cent at Des Moines, Los Angeles, and Noblesville, IndMwas to be diverted for inequity and shift differential changes. The Firestone pact increased to 4 from 3 cents an hour company payments to the SUB fund whenever the maximum funding position falls below 100 percent. Benefits were increased to 62 percent (when added to State unemployment compensation) of the employee’s gross weekly earnings (instead of the earlier 65 percent of take-home pay), with a $5 increase in the maxi mum to $40 for a single worker if eligible for State unemployment compensation and $62 if ineligible; the $2-a-week allowance for each de pendent up to 4 was continued. Benefits for workers in States where unemploy ment compensation is payable for less than 39 weeks were increased by providing that estimated State unemployment compensation would no longer be deducted from SUB after State benefits run out. Provision was also made for SUB benefits for more than 39 weeks if State unemploy ment compensation was provided for a longer period. A short workweek provision similar to that in the 1961 automobile pacts guaranteed a worker a portion of straight-time hourly earnings for each unworked hour less than the regular schedule. The proportion was 65 percent in the case of short workweeks scheduled by the company and 50 percent in the case of unscheduled workweeks. Lump-sum severance pay after a 2-year layoff for workers ineligible either for retirement benefits or a service award upon retirement was extended to employees with 2 years’ service. Previously, it applied only to those with 5 years’ service. SUB payments subsequent to the final layoff were no longer to be deducted from employees* separation pay. Workmen’s compensation was to be supple mented up to 80 percent of an employee’s average earnings for a scheduled workweek; formerly it had been supplemented up to the level of nonoccupational sickness and accident benefits—about $40 in the case of men and $32 for women. ♦Prepared In the D iv isio n of W age E conom ies, B ureau of Labor S tatistics. 707 708 Other changes included revisions in funeral and jury pay provisions and improved prorated vaca tions on retirement. Metalworking. The Kaiser Steel Co. of Fontana, Calif., on April 25 announced the first month results of its long range sharing plan which took effect March l.1 Under the formula, total cost savings of $962,000 over the 1961 base were achieved, of which the workers received 32.5 per cent, or $312,650. The 3,930 workers sharing in the plan received supplemental pay checks for the month of March ranging from 15 to 45 percent of their regular earnings, depending on their job classification, and averaging $80 or about 55 cents an hour. Some 3,000 workers on incentive pay systems did not participate; if they exercise their option to switch to the new plan, future individual shares may represent a smaller fraction of cost savings. On April 22, 11 major steel producers announced that a majority of the Nation’s steelworkers chose to take an immediate extra week of paid vacation in preference to saving the money for retirement or termination under the terms of the savingsvacation plan 2 established in the 1962 steel settle ment. In 10 of these companies, an average of 62 percent of the workers voted for an extra week of paid vacation and 38 percent chose to save the money, which would accrue 3-percent interest until they retired or left the company. At Inland Steel Co., 86.2 percent of the production and main tenance workers chose to take paid vacations and the others chose the savings option. On May 10, following more than 10 months of negotiations,3 workers represented by the Inter national Association of Machinists at various locations of The Boeing Co. across the nation, ratified a 3-year contract by a vote of 14,205 to 4,688. The acceptance came after the company made some modifications in an offer rejected in mid-April. The pact, which covers over 40,000 workers, provided wage increases of 11 to 14 cents retroactive to September 16, 1962, and 5% to 9 cents effective September 16 of both 1963 and 1964. A cost-of-living escalator clause was estab lished with maximum adjustments up to 3 cents each year. The company also agreed to pay the 1See Monthly Labor Review, February 1963, pp. 154-160 and 179. * See Monthly Labor Review, May 1962, p. 553, for details of the plan. * See Monthly Labor Review, April 1963, p. 426. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 equivalent of 4 cents an hour to correct job inequities, to consolidate and upgrade jobs, and in general to bring the Boeing wage structure into line with other aerospace companies. All new hires, recalls, or transfers who do not elect to join the IAM must, between the 30th and 40th day of employment, give a letter to that effect to the union and the company. Otherwise, they are required as a condition of employment to become members within 20 days. The company revised an employee performance analysis rating system to place more emphasis on seniority. Dissatisfaction with this system was a primary factor in the earlier contract rejection, especially at Wichita where there had been substantial layoffs and cutbacks. Pension benefits were raised from $1.75 per month per year of service to $2.25 with a minimum $50 monthly pension. Relocation policies were to be made uniform and will become part of the contract effective June 1, 1963. A strike was averted after the contract rejection in April when, at the request of President John F. Kennedy, union leaders asked members to vote on the new and clarified proposals. The subsequent ratification ended year-long negotia tions in the aerospace industry. Late in April the Vertol Division of the Boeing Co. and the United Automobile Workers, repre senting 4,200 workers at plants in the Philadel phia, Pa., and Wilmington, Del., areas, reached agreement on a contract which provided 20 to 30 cents an hour wage increases over 3 years and com pany assumption of full cost of medical insurance. The settlement also provided for cost-of-living increases totaling as much as 3 cents. The Curtiss Division of the Curtiss-Wright Corp. and the International Association of Machinists, representing over 1,600 workers at Caldwell, N.J., under a wage reopener scheduled for May agreed to a 3-year contract supplementing one to expire in 1964. The new agreement, retroactive to January 1, 1963, provided 3K-percent wage in creases on January 6, 1964, and January 4, 1965. The settlement also included a separation pay provision, a ninth paid holiday and improvements in vacations, and health and welfare benefits. On April 11, members of the Marine Draftsmen’s Association (Ind.) accepted an agreement negoti ated with the Electric Boat Division of the General Dynamics Corp. for 1,500 design department em ployees at Groton, Conn. The 3-year contract DEVELOPMENTS IN INDUSTRIAL RELATIONS reportedly cost about 37 cents in wages and in creased supplementary benefits. Top technical rates were increased 17 cents an hour retroactive to March 1, with an additional 16 cents to go into effect in both 1964 and 1965. The top clerical rate was to be increased from $3.38 an hour to $3.70 by 1965. In early April, National Labor Relations Board trial examiner Arthur Leff found that the General Electric Co. failed to bargain in good faith in 1960 contract negotiations with the International Union of Electrical Workers. Settlement had been pre ceded by a 3-week strike. The trial examiner found that the company had adopted a take-it-orleave-it position on its only contract offer and held that this did not amount to good faith bar gaining. Substantiating the finding of lack of good faith, the examiner said, were General Elec tric efforts through its own communication media to undermine the union leader’s position by ques tioning their motives; its failure to furnish the union with necessary bargaining information; and its action in bypassing the international union (the designated bargaining agent) to deal with locals. General Electric immediately announced plans to appeal the case to the NLRB and if necessary to judicial review. Late in the month, General Electric and the International Union of Electrical Workers agreed to establish three joint subcommittees to discuss arbitration, contract language, and employee bene fits in advance of July 31, the reopening date. The IUE contract covers about 70,000 of General Electric’s 130,000 production workers. The Chrysler Corp. and American Motors Corp. agreed to set up joint study committees with the United Automobile Workers prior to contract negotiations, as had General Motors Corp. and Ford Motor Co.4 Two farm implement com panies—International Harvester and Deere & Co.—also agreed to advance study. Allis-Chalmers Manufacturing Co. and Caterpillar Tractor Co. sought discussions on a local plant basis rather than the UAW’s proposed companywide com mittees. According to Walter P. Reuther, UAW president, “The proposed joint study committee would not be authorized to bargain. It would be confined to assembling relevant data and to exploring and studying objectively and in good faith the problems we will face when bargaining begins.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 709 About 1,500 engineers and scientists, members of the independent Association of Scientists and Professional Engineers, walked off their jobs for 3 hours at the Camden, N.J., plant of Radio Corporation of America April 19 in protest over hiring, job assignment, and layoff practices. They approved economic sanctions against the company, including refusal to work overtime except in “extreme emergencies.” The engineers claimed the company was hiring persons not covered by their agreement to work on jobs that came within the engineers’ jurisdiction and placing administrative personnel in engineering jobs. The union also stated that layoffs of union personnel, resulting from reductions in defense contracts, were not being made in ac cordance with the contract. A committee set up earlier by the company and the Electrical Workers (IUE) representing production workers at the plant had been largely unsuccessful in soliciting new defense contracts. RCA agreed in March to finance an IUE sponsored 32-week re training course for production and maintenance employees. About 7,000 workers in more than 100 shops in the San Francisco Bay area were covered by a 2-year agreement reached in early April by the California Metal Trades Association and the International Association of Machinists. The pact provided an 8- to 15-cent hourly wage in crease in 1963 with an additional 7 to 12 cents and a possible cost-of-living adjustment in 1964. Sick pay to supplement benefits under the Cali fornia State disability insurance program and other health and welfare improvements were also in cluded in the settlement. Under provisions of the previous contract, mem bers of three major lodges were paid double time for all overtime worked while in manufacturing shops; the 9th and 10th hours were paid at time and one-half. The CMTA had proposed to elimi nate the provision for double time, but 5 of the 7 lodges affected had rejected an agreement con taining this provision and the employers sub sequently withdrew their proposal. The Allen-Bradley Co., manufacturer of elec tronic components, and the United Electrical Workers (Ind.) agreed to wage increases reportedly averaging 10% cents an hour for 4,900 workers in Milwaukee. The increases, negotiated under 4See Monthly Labor Review, May, 1963, p. 556. 710 a wage reopening clause, raised base rates of incentive workers 7 to 8 cents an hour and rates of day workers by 10 to 12 cents, retroactive to April 1, 1963. Food. Application of provisions of the 1961 master agreements at Swift & Co. to seven of its plants was modified by agreements reached at various dates with the Meat Cutters, representing approximately 1,300 workers in Nashville, Tenn.; Moultrie, Ga.; Ocala, Fla.; Montgomery, Ala.; and Jackson, Miss., and the Brotherhood of Packinghouse Workers (Ind.), representing ap proximately 1,500 workers in Fort Worth and San Antonio, Tex. At 6 of the 7 plants the agreements, effective in January and February 1963, reduced rates in effect and waived deferred increases that had been due in September 1962. At Jackson, the deferred increase was also waived but a 5-cent general increase was put into effect in February 1963 and 2 cents of the cost-of-living allowance was incor porated into base rates. At all seven plants, deferred increases or wage reopenings scheduled for September 1963 were also waived.5 At some plants, pay for all holidays not worked was abolished and at others the number of holidays was reduced; during holiday weeks employees are to be guaranteed 40 hours’ work in either 4 or 5 days. At plants represented by the Meat Cutters, the night premium was cut, and various benefits eliminated—the number of holidays was reduced or eliminated, meal and clothing allowances and clothes changing time were abolished. Except at Nashville, the number of vacation weeks was reduced and the method of computing vacation pay revised, premium pay for work on Saturday as such was abolished and other weekend pre miums reduced, and the afternoon relief period, jury duty, and military encampment pay were eliminated. At the Texas plants, part of the wage reduction consisted of cancellation of a pre vious wage increase granted in lieu of the clothing and clothes changing time allowances. Sickness and accident benefits were cut by both agreements. In the future, any new workers are to be hired at rates varying from 83% to 88% cents below the pay of those already on the payrolls, with $1.25 as the new hiring rate for common laborers; new employees will advance to the job rate in six https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 60-day pay steps.5 After the Packinghouse Work ers refused to agree to similar terms for the company’s Atlanta plant, this plant was closed. A 2-year contract to replace those that had expired January 31, 1963, was agreed upon on April 16 by the International Longshoremen’s and Warehousemen’s Union, Local 142, represent ing approximately 10,000 employees, and 23 of Hawaii’s 25 unionized sugar plantation companies. The new agreement, which will expire January 31, 1965, provides wage increases of 15 cents retro active to February and 10 cents in 1964. The total wage and fringe benefit gains were esti mated at 32 cents by a union spokesman. Other provisions include a union shop, con tinuation of the sick benefit plan, but with benefits to begin on the first day (rather than after the third day) of illness or accident if ordered by the company doctor not to report to work; added protection for emergency care away from the plantation; an additional paid holiday (the day after Thanksgiving); an increased night shift differential; and improved severance pay benefits. Three weeks’ vacation will be provided after 15 years’ service; qualifying hours for vacations erew reduced. The pension issue was to be further negotiated, but company-paid medical care for new pensioners and their spouses was added. The period during which former rates of pay were continued for workers whose jobs are down graded was increased for workers with 29 or more years of service. The new contract also called for the establishment of industrywide bargaining. This settlement was preceded by a 46-hour strike in April and a 10-day work stoppage in February. A strike was averted by a settlement on April 15 between the International Milling Co. and the American Federation of Grain Millers which represents approximately 1,000 of the company’s employees. The settlement was similar to those concluded earlier by the union for about 7,500 employees of General Mills, Inc., and Pillsbury Mills, Inc.; like those agreements, it did not provide for wage rates, which are negotiated on a local level. All three contracts increased hospital benefits and company payments for 1On the basis of earlier Information, some of these reductions were reported In the Monthly Labor Review, February 1963, p. 181. • Further details regarding these changes will be published in Supplement No. 7 to the Swift Wage Chronology, in a subsequent issue of the Monthly Labor Review. DEVELOPMENTS IN INDUSTRIAL RELATIONS health and welfare benefits. General Mills did not change its contributory pension plan, but company-paid pensions were increased to $3 a month for each year of service at the other companies—from $2.25 at International Milling Co. and from $2.50 at Pillsbury Mills. The agreements also limited the companies’ rights to subcontract work. Other Manufacturing. The Eastman Kodak Co. announced a wage increase of about 4 percent for 36,000 hourly and salaried employees at its Rochester, N.Y., facilities, regional sales divisions, processing laboratories, Eastman Kodak stores, and at Gelatin Corp. The increase, effective May 20, was estimated to cost $10 million a year. The American Viscose Corp. and the Textile Workers Union announced agreement April 8 on a contract to run until December 1 , 1965, at the Avisco cellophane plant at Fredericksburg, Va. The contract covers some 2,000 workers and provides a total of 15 cents in wages in three equal installments on December 31, 1962, July 1963, and July 1964. Vacation periods were liberalized and hospital and surgical coverage increased. About 3,000 employees of Lever Brothers Co. received an 8-cent hourly wage increase in March under terms of a 1-year contract with two chem ical unions. A 10th paid holiday (varying by plant) was also added, the maximum surgical fee was raised to $350, and the company agreed it would not increase subcontracting of work. Work ers at plants in Baltimore, St. Louis, Los Angeles, and Edgewater, N.J., were represented by the International Chemical Workers, and those at the Hammond, Ind., plant by the Oil, Chemical and Atomic Workers. A 10-day strike was ended when the Fulton County Glove Manufacturers, Inc., and Block Cut Manufacturers, Inc., and two unions, the United Glove Workers (Ind.) and Local 1714, Consolidated Glove Cutters and Shavers of the Amalgamated Clothing Workers of America agreed to 2-year contracts on April 10, 1963, which cov ered approximately 3,000 employees in about 50 glove shops in the Gloversville, N.Y., area. The settlement provided an immediate general 3-cent-an-hour-increase, and an additional 4 cents on April 1, 1964. Life insurance was increased * See Monthly Labor Review, January 1963, p. 72. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 711 to $1,000, from $750, and a double indemnity clause added. Provision was made for checkoff of union dues and for future revision of piece rates. Establishment of an impartial umpire system to settle labor disputes between the glass con tainer industry and the Glass Bottle Blowers As sociation was announced on April 20, 1963, by a committee of union and company officials. This new umpire system will resolve disputes covering more than 50,000 workers in 77 plants operated by 28 glass container manufacturers. Reportedly, the selection of an arbitrator on a case-by-case basis had caused long delays in the handling and settlement of grievances. The Pacific Lumber Co. announced an increase in wage rates and life insurance coverage for 1,400 workers in the Eureka, Calif., area. Effective April 1, hourly wages were increased 7 to 15 cents, depending upon classification, and minimum life insurance was raised to $10,000. Trade and Services. R. H. Macy and Co., Inc., at five stores in Manhattan, Brooklyn, Queens, White Plains, and Parkchester, N.Y., followed Gimbel’s, Inc. and Bloomingdale’s, Inc. with a workweek reduction to 37% hours, from 40, beginning in February 1964.7 A 2-year agreement with the Retail, Wholesale and Department Store Union provided that the reduction will be effective for 9 months of each year; in the 3 months after October 15, employees will work 40 hours a week. Pay was increased $3 a week at Macy’s, effective February 1963, with an additional $2 due in February 1964. The 8,300 employees affected will also receive an extensive job evaluation which is expected to cost Macy’s $421,324 annually and can provide up to $12 a week additional pay for certain job classifications. Employees given re duced job status as a result of the evaluation were guaranteed previous pay for 1 year. Mini mum hiring rates and progression steps were also increased. Plans to initiate an employee profit-sharing plan were approved by stockholders on May 9 as set forth in the annual report of Montgomery Ward and Co. The plan, affecting 46,000 em ployees, is to entail an employee contribution of 3 percent of his annual earnings. The minimum company contribution will be 25 percent of the amount contributed by employees. If company 712 annual net earnings rise to $18 million, this contribution will automatically increase to 28 percent of employee payments; thereafter, Ward’s contributions will increase 3 percent for each $2 million increase in its earnings up to total earnings of approximately $33 million, when it will con tribute 50 percent of total employee contributions. Eligible employees—those participants in the contributory retirement program with 2 year’s service—-would receive payment when leaving the company (after having paid into the fund for 5 years) or upon retirement, death, or total perma nent disability. Had the plan been in effect in 1962, company payments into the fund would have been 31 percent of total employee contribu tions, or an estimated $1.6 million. Amendments to the contributory retirement program necessary to implement the profitsharing plan would also reduce employee contri butions by half (1.5 percent instead of 3 percent of the first $4,800 and 3 percent instead of 6 percent on annual earnings above $4,800). Em ployee benefits would not be affected since these are linked to earnings and years of service. The Cleaners and Dyers Board of Trade and the Empire State Chain Store Association in early April signed a 3-year agreement with the Amalgamated Clothing Workers covering about 3,500 drycleaning and dye house workers in New York City. Another 1,500 employees in inde pendent drycleaning establishments were expected to come under terms of the agreement. The contract provided increases of 5 cents an hour in each year for hourly paid workers and clerks, $3 a week the first year and $2 a week in the second and third years for salaried workers and wholesale drivers, and $3 a week in each year for chain store drivers. In addition, chain store drivers will have their weekly hours reduced from 46 to 40 over the contract period. Pensions were increased to $40 a month (from $35) and hospital room allowances were increased to $12 a day (from $9) and the hospitalization plan was broad ened to include dependent children. The New Jersey Cleaners and Dyers Associa tion negotiated an agreement with the same union for about 2,500 employees providing a 15-cent increase for hourly workers and $6 a week for salaried workers and wholesale and retail drivers spread over the contract term of 3 years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 Collective bargaining rights were granted to employees of nonprofit hospitals in New York City in a bill signed by New York Governor Nelson A. Rockefeller on April 24. The measure pro hibits strikes and lockouts, gives the courts the power to enjoin strikes, and provides for media tion, factfinding, and binding arbitration. The law was enacted at the Governor’s request to keep his pledge to hospital employees who struck the Manhattan Eye, Ear, Nose and Throat Hospital in June 1962 and Beth-El Hospital in May 1962. In late March and early April 1963, Local 1199 of the Drug and Hospital Employees Union, an affiliate of the Retail, Wholesale and Department Store Union, negotiated its first contracts with four hospitals in New York City. At the New York Medical College’s Flower and Fifth Avenue Hospitals, the union negotiated a 3-year contract which provided immediate 10- to 20-cent-an hour wage increases for about 225 nonprofessional employees. The contract also included provisions for medical care and life insurance and for annual reopeners in 1964 and 1965. A 27-month con tract was signed at the Home for Aged and Infirm Hebrews providing a 21-cent-an-hour wage in crease and a 37K-hour workweek. At the Long Island Jewish Hospital, a 5-year contract provided an increase of 5 cents an hour effective April 1 and an additional 5 cents an hour on July 1, 1963, with subsequent annual reopeners. This brought to 26 the number of hospitals in the area which reportedly had agreements with the union. Transportation and Utilities. The Railroad Yardmasters of America and the National Railway Labor Conference representing about 80 of the Nation’s class I railroads on April 3 signed an agreement covering about 4,000 employees. The agreement provides an $8 a month increase retro active to March 3, 1962, and an additional 2% percent retroactive to May 1 , 1962. In addition, a hospital, surgical, and medical program was established, to be financed by reducing the em ployee’s basic monthly pay rates by $21.01 effec tive May 1 , 1963. The carriers agreed to pay 81 cents a month for each employee for accident benefits for on-duty injuries. Agreements between stevedoring firms in Great Lakes ports and the International Longshoremen’s DEVELOPMENTS IN INDUSTRIAL RELATIONS Association were reached in late March and in April. Settlements in Cleveland, Toledo, Milwau kee, and Chicago provide a 32-cent-an-hour increase in wages over 3 years, with 12 cents in the first and 10 cents in each of the remaining years. Contributions for fringe benefits in Cleveland, Toledo, and Milwaukee were to in crease a total of 18 cents an hour with 7 cents the first year, 6 cents the second, and 5 cents the third year. In Chicago, benefit contributions were reportedly to increase a total of 20 cents an hour, with yearly increases of 8 cents, 7 cents, and 5 cents. Longshoremen in all ports previously received $2.68 an hour in basic wages and 31 cents an hour in fringes. The Communications Workers of America representing 17,500 telephone equipment installers in 44 States reached agreement, under a reopener, with Western Electric Co. on a new contract which provided, subject to ratification, general wage increases of 7 to 14 cents hourly and general wage structure changes that would raise some employees as much as 41 cents an hour. The contract will be effective until January 1, 1964. Late in March, the National Labor Relations Board had dismissed Teamster union objections to CWA representation of the equipment in stallers, following a representation election last December in favor of the CWA.8 Commonwealth Edison Co. of Chicago and the International Brotherhood of Electrical Workers agreed under a wage reopener to a 6- to 15-cent increase for approximately 9,500 employees effec tive April 1. The increase averaged 12.28 cents or 3.71 percent and the agreement was extended for 1 year to March 1965, with a reopener in March 1964. Construction. The Builders Association of Chi cago, Inc., and the city’s District Council of Car penters on March 13 signed an agreement covering about 30,000 employees in the Chicago area, ne gotiated under a reopening clause of their contract which runs to May 1967. The settlement pro vided a 20-cent-an-hour increase effective June 1, 1963, raising the journeymen’s scale to $4.43 an hour, and an additional 17 cents on May 31, 1964. 8See Monthly Labor Review, January, p. 67. 6 8 6 1 3 3 -6 3 - -8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 713 Foremen’s pay was increased to 35 cents, from 25 cents, an hour above journeymen’s scale. On April 26, the Boston chapter of the Associ ated General Contractors and the Building Trades Employers Association reached tentative agree ment with the Boston District Council of Car penters on a 5-year contract covering about 5,000 carpenters. The contract called for increases of $1 an hour spread over the 5 years and a 5-cent-aman-hour increase in contributions to the health and welfare fund on November 1, 1965. The carpenters were receiving $3.85 an hour and 25 cents an hour contributions with 10 cents going to the health and welfare fund and 15 cents to the pension fund. Carpenters Union, Local 90, with about 500 members in Vanderburgh and Posey Counties, in southern Indiana, voted in early April to cut their scale on home construction by 60 cents an hour. The 1-year contract effective April 1 set the scale at $3 an hour plus 12 cents for fringes for home construction, but increased pay by 20 cents or to $3.80 an horn- on commercial and industrial work. The aim is to provide more work on homebuilding. Increases of 42 X cents an hour in wage scales over 3 years were provided in contracts signed by the Teamsters Local 541 and the Carpenters District Council of Kansas City and vicinity with the Builders’ Association of Kansas City, Mo. The agreements covered approximately 2,000 teamsters and 6,500 carpenters and provided increases of 15 cents an hour in each of the first 2 years and 1 2 cents in the third year. The union was given an option to take the second year increase in wages or in supplementary bene fits. Top scales for teamsters previously had been $3.23, for carpenters, $4.25. The New York State Chapter of the Associated General Contractors in mid-April reached agree ment on a new contract with the Teamsters union and on a wage increase with the Laborers union under a reopening clause, ending a 2-week strike. Both settlements, covering about 7,000 laborers and 4,000 Teamsters in upstate New York, reportedly provided an 18-cent hourly package increase retroactive to January 1, 1963, and an additional 18 cents an hour in January 1964. Laborers in four counties will receive additional adjustments in 1964. Basic wage scales for labor- 714 ers varied, among counties, from $2,775 to $3,025 an hour. Teamsters’ scales varied from $2.95 to $3.35 an hour depending on job classification. The newly formed Southern Dredge Owners’ Association, comprised of eight major Atlantic and gulf coast dredging companies, negotiated a 3-year agreement with the Operating Engineers covering about 1,400 employees working in south eastern States. This was the first time the com panies had negotiated as a unit with the union. The contract provided an approximately 32-centan-hour package with wage increases of 7 cents an hour effective on May 1, 1963, and 1965. Hourly rates of levermen will be $3.14, and those of deckhands, $1.73. In 1964, the companies will begin contributions of 10 cents an hour per employee to establish a fund which is to provide a $100-a-month pension. The employers were also to contribute 5 percent of total annual straight-time hourly wages to a vacation fund. Other Developments The International Longshoremen’s and Ware housemen’s Union held its 15th biennial conven tion in San Francisco in early April. President Harry Bridges, in the keynote address, stressed the problem of jobs as the theme of the convention. The officers’ report predicted that the United States “is headed for an indefinite period of chronic unemployment unless drastic steps are undertaken by the unions and by Congress” and based this prediction on what it described as slowing economic growth, large numbers of low incomes in the U.S., rising unemployment, and Government pressure against wages. The officers reported that the agreement on mechanization and modernization of the union’s waterfront division has achieved its job security objectives and protected the membership against the effects of automation but argued that this solution was limited; they urged that the solution be made on the national level by the labor move ment as a whole, and that a shorter workday and workweek constituted the most meaningful attack on unemployment. The National Labor Relations Board on April 28 announced that the Teamsters Union had won a second representation election covering about 8,400 truckdrivers and helpers in the Philadelphia https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 area.9 In the election held from April 25 through April 28 among four locals, the votes totaled 4,893 for the Teamsters and 2,550 for the peti tioning group, called the Voice of the Teamster Democratic Organizing Committee. In the pre vious election in November 1962, the Teamsters won by only 596 votes out of 7,144 cast. How ever, in March, the NLRB set aside that election on grounds of violence. In late April, the NLRB decided two cases against the International Ladies’ Garment Workers’ Union and in favor of the Federation of Union Representatives (FOUR) composed of some 230 ILGWU organizers, business agents, and other staff employees.10 In the first case, the Board found that the ILGWU had coercively questioned employees about their membership in FOUR and threatened reprisals against union members. In addition, the Board ordered the ILGWU to compensate its employees for any earnings lost (plus 6 percent interest) when the union withheld automatic wage increases, but dismissed charges that two leaders of the staff union were discharged illegally. In the second case, the Board ordered the ILGWU to extend recognition to FOUR and to begin collective bargaining by furnishing neces sary personnel data. The ILGWU announced plans to appeal these decisions to the U.S. Court of Appeals of the District of Columbia on grounds that its staff, as policymaking officials, do not come under the Labor Management Relations Act. In Washington, D.C., striking office employees of the Wood, Wire and Metal Lathers International Union represented by the Office Employees Inter national Union ended a 5-week strike on April 11 after agreeing to submit their contract dispute to an arbitration panel appointed by AFL-CIO President George Meany.11 The previous contract expired in October 1962. In mid-April, James G. Cross, former president of the Bakery and Confectionery Workers’ Inter national Union (Ind.), was convicted in Federal Court in Washington, D.C., of charges that he and other former union officials, most of whom pleaded guilty, had embezzled $35,000 and con- ' See Monthly Labor Review, January 1963, p. 67. i° See Monthly Labor Review, October 1962, p. 1157. 11See Monthly Labor Review, M ay 1963, p. 561 DEVELOPMENTS IN INDUSTRIAL RELATIONS spired to use the money to bribe jurors in a previ ous trial and had embezzled another $35,000 to cover his first theft. The earlier trial ended in a directed verdict acquitting him of perjury charges growing out of his 1959 appearance before the Senate Select Committee on Improper Activities in the Labor or Management Field. Subse quently, he was suspended as president by the union and then resigned.12 The New York City Central Labor Council announced on April 23 that it had received a $90,000 1-year grant from the U.S. Department of Health, Education, and Welfare to develop a pioneering project for rehabilitation, retraining, and reemployment of disabled workers. The grant, which was augmented by an appropriation of $49,500 from the Labor Council, carried out a 2-year renewal guarantee. The project was de signed to make use of the labor movement’s special knowledge to aid disabled workers to become self-supporting, supplementing the work of existing rehabilitation agencies. Charges of racial discrimination brought by 13 workers against Local 2401 of the United Steel workers at Atlantic Steel Co. were dismissed in April by Stuart Rothman, then NLRB General Counsel.13 Still pending for action by the Board itself was a petition by the National Association for the Advancement of Colored People that the local be decertified. Rothman found no basis for the charge that Negro lift truck operators received u See Monthly Labor Review, July 1961, p. 778. » See Monthly Labor Review, December 1962, p. 1407. m See Monthly Labor Review, M ay 1961, p. 530. The remaining 9 firms had few (employees and, little employment turnover. The Department of Defense expected th at they would meet the requirements of the military departments by the April 30 deadline established by the President’s Com mittee. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 715 lower pay than their white counterparts. He also rejected the allegation that the net effect of two new provisions in the 1961 agreement—one eliminating the employer practice of discrimina tory eligibility restrictions for certain occupations and the other prohibiting a worker from main taining occupational seniority in more than one line of promotion—discouraged Negroes from applying for the jobs opened up by the contract. He interpreted the new provisions as merely applying the traditional seniority rules for inter departmental transfers to transfers within a department, which had been prohibited until 1961. He pointed out that a number of Negro employees had availed themselves of the new opportunities. A report issued May 3, 1963, by the President’s Committee on Equal Employment Opportunity answered charges by the Southern Regional Coun cil, a private biracial organization seeking equal opportunity for Negroes, that of 24 Atlanta branches of companies with Government con tracts only 4 were complying with Executive Order 10925, which prohibits Government con tractors from discriminating against employees or applicants for employment because of race, creed, color, or national origin.14 At the request of the Committee, the Department of Defense surveyed the same group of establishments and found that the four firms in compliance employed 80 percent of all employees of the entire group of companies. The 11 found not to be in com pliance in many cases had committed “ technical” violations—for example, failure to display equal employment opportunity posters—and some of the firms were said to be complying at other locations. Book Reviews and Notes E ditor’s N ote.— This month, reviews are devoted to recent books which have 'particular relevance to the theme of this issue. Social Security Perspectives—Essays by Edwin E. Witte. Edited by Robert J. Lampman. Madison, University of Wisconsin Press, 1962. 419 pp., bibliography. $6.75. Professor Edwin E. Witte—my teacher a gener ation ago—has had a large influence upon men and events. Few have influenced the develop ment of social security in America as much as he has. His views were developed in Wisconsin, which for some decades served as one of the most exciting laboratories in human relations among the States. As a professor at the University of Wisconsin and as an official helping legislators draft the basic legislation on minimum wages, hours of labor, workmen’s compensation, and unemployment insurance, Professor Witte be came intimately familiar with the central issues— economic, political, and sociological—in these areas. While serving as executive director of the Com mittee on Economic Security, he assembled the volume entitled Social Security in America; The Factual Background of the Social Security Act as Summarized From Staff Reports to the Committee on Economic Security. Many of these staff reports he wrote himself; others he guided. This volume—published by the Social Security Board in 1937—probably still remains, except for the limitations of time, the most comprehensive reference guide to the problems of economic insecurity in America. Professor Witte was at the hub of the discussions that fashioned the central ideas in the Social Security Act in 1935. The record of these dis cussions and the significance of the alternative 716 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis proposals, written by Professor Witte at that time, were published only in 1962 by the University of Wisconsin under the title of Development of the Social Security Act. We are indebted to Professor Lampman for collating this third volume of various articles, papers, and chapters written by Professor Witte between 1938 and 1957. It is divided into four parts. In part one, Professor Lampman has included Professor Witte’s views on the welfare state, objectives of social security, and the chang ing role of labor, management, and government in the quest for security. Part two, on the prob lem of old-age security, includes Professor Witte’s writings on the drive for universal pensions, on private pension plans, and particularly his pro vocative comments on the solvency of the social security fund. Part three deals with unemploy ment issues. While written between 1928 and 1956, every item included by the editor has sig nificance today: The nature of unemployment insurance, the major issues, the role of the Federal Government, the direction unemployment in surance is taking, and the highly controversial problem of federalization. Part four treats health issues. And here Professor Witte includes work men’s compensation (1930), compulsory health insurance (1937), and related topics including the future of social security in the health field. Students of the subject will find these per spectives by the father of social security in America most enlightening. We tend to take social security for granted. It has been on the statute books since 1935, and we often forget the evolution of the ideas which gave it its form and substance. I found it rewarding to examine this selection of Professor Witte’s best writings of a period of 32 years. Although they add little new knowledge to the field, Dr. Lampman and the University of Wisconsin are to be congratulated in having brought together Professor Witte’s ideas as they had evolved during the generation when social security in America was being trans lated from a dream into the beginnings of a reality. — W illiam H aber Department of Economics University of Michigan BOOK REVIEWS AND NOTES Income and Welfare in the United States. By James N. Morgan, Martin H. David, Wilbur J. Cohen, Harvey E. Brazer. Ann Arbor, University of Michigan, Survey Kesearch Center, 1962. 531 pp. $7.95, McGrawHill Book Co., Inc., New York. Although all the data in this book came from a single cross-section survey and were analyzed generally in the same way, the substantive chapters read like only loosely related papers in a symposium. This survey of some 3,000 spending units in 1960 secured information on parental backgrounds, education, religion, politi cal preferences, and physical condition and on attitudes toward work, economic achievement, care of dependent relatives, and education of children. Along with the usual demographic and economic factors, these social, physical, and psychological variables provided a wide choice of factors to associate with variations in income and its sources, in the responsibility for the care of relatives and the nurture of children, and in the support of philanthropic activities. The number of analytic factors was varied by subject; at the same time, classification details on particular factors were often changed so that it is not possible to trace the influence of any one de terminant on all the aspects of income and welfare included. The eight factors used to explain the labor force participation of spending unit heads (chapter 4) did not include sex and occupation. The 14 factors used to analyze the variability in hourly earnings of spending unit heads (chapter 5) included sex and occupation as well as three meas ures of mobility and migration. The seven factors associated with the hourly earnings of wives (chapter 9) included occupation and number of years worked as well as a combined age and educa tion classification used throughout, but the occupational classification was more detailed and the age-education groupings less detailed than in the case of spending unit heads. The number of years worked is probably as important an explana tion of the variation in the hourly earnings of the women who were spending unit heads as for wives, but it apparently could not be introduced into a scheme of analysis with data covering both men and women. The changes in the detail of occu pational and age-education classifications may also have been imposed in part, by the analytical https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 717 scheme. Whatever the reasons for such differ ences, they confine the substantive results within the separate chapters. The regression procedure used for the analysis was based on an extensive multiple classification of every unit under study. The results of the analysis depend on the classification groupings and where these are very broad, as with occupation, income, education, and age, variations within the groupings can reasonably be attributed to factors other than the ones selected. Thus, the authors find that “the sex difference in hourly earnings of spending unit heads do not become smaller when other explanatory factors are taken into account.” Only five occupational groups were used—business and professional, clerical and sales, blue-collar, farmers, and “not in the labor force now.” Within the business and professional group, for example, men and women of the same education and age, say college graduates 45-54 years of age, are not distributed by detailed occupations in the same way, so that the classification construes the differ ences in hourly earnings between the different occupational distributions within the group of occupations as a sex difference. The problem of grouping is particularly troublesome where family or spending unit income is used as an explanatory factor, principally in the chapter on voluntarism and philanthropy. The authors conclude that “non-Christians, mostly Jews, contribute the most (to individuals, church, and charity) even after adjustments for their other characteristics, such as higher income.” Within the broad in come brackets, especially those at the upper end of the distribution, $7,500-$9,999, $10,000$14,999, and $15,000 and over, that account for a large fraction of all contributions, the differences in mean incomes for the religious groups could have accounted for the variation in contributions attributed to religion. Those groups of families or spending units that are more numerous in the upper part of the income range have higher in comes within income brackets, and since income is the primary determinant of nonfamily contribu tions, the small but significant religious differences could simply reflect the tendency for the means of classes to draw toward the general mean. The multivariate technique used to estimate the effects of each factor does not differ from an ex tensive standardization procedure in its sensitivity MONTHLY LABOR REVIEW, JUNE 1963 718 to the operational definition of “all other things being equal.” To be persuaded that this rela tively new tool offers precise direct estimates of the differences in such phenomena as labor force participation and hours and earnings of various groups in the population adjusted for all other factors, most labor economists will look for some methodological comparisons, both within the technique and with other methods of analysis, as being essential to the continuation of research on the structure of incomes. — D orothy S. B rady Wharton School of Finance and Commerce University of Pennsylvania New Horizons for American Labor. By Joseph A. Beirne. Washington, Public Affairs Press, 1962. 89 pp. $3.25. A book by a prominent labor leader is an un common event, and this is an uncommon book. Joseph A. Beirne, president of the Communica tions Workers of America, a vice president of the AFL-CIO, and a promising candidate for higher office, emerges in this book as the prophet of the “new unionism,” 1980 model. Beirne’s new unionism resembles Sidney Hillman’s short-lived 1920 model in name only, but the analogy between Hillman and Beirne can be carried a step further. Like Hillman, who was a veteran in industrial unionism long before the rise of the CIO, Beirne is already accustomed to the milieu he foresees for other unions—a predominantly white-collar labor force, in a rapidly changing technology, with tradi tional union tactics unavailing against virtually strike-proof automated establishments. He may thus be destined to play a leading role in shaping a new unionism. Beirne is concerned with the labor movement’s isolation from the events that are changing the character of industry, government, and the world at large, and with its apparent reluctance to ad just. He senses the prevailing mood among union leaders as one of puzzlement and frustration, lead ing to angry and defensive tactics that encourage a hardening of management and public attitudes, with the result that unions are pushed deeper into isolation. He also heeds the pressures for change arising within the labor movement. He defines areas of rigidity withiD unions, analyzes the short https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis comings of union bargaining tactics, and prescribes some remedies. He is, of course, confident that the labor movement will rise to its challenges and will grow. In the chapter entitled “Creating a New Unionism,” Beirne projects a profile of the labor movement 20 years from now. He foresees a stronger and more creative national labor center concerned primarily with economic and social policy. He sees international unions organized on industry lines and a subordination of collective bargaining functions to services (the general outlines of bargaining will be agreed upon at a national level, to be implemented on an industry group basis). Union staffs will be composed of more professionals; administrative skills of union officers will be stressed. State and city central bodies will be the basic political and legislative units and local unions will be concerned principally with community affairs. Beirne’s assessment of the problems facing the labor movement, his diagnosis of labor’s weaknesses, and his remedies may not appear to be strikingly original amid the current flood of similar writings, but the book conveys a sense of realism and authority that is often lacking in the others. Beirne sometimes weakens his argument by adding qualifications or even contradictions which appear to be designed to appease union leaders of a different school or possibly to withhold a tactical advantage from employers, but on the whole this is unquestionably a bold book. On its merits, it deserves a wide reading in the labor movement and in university industrial relations courses. A cheaper paperback edition would seem worthwhile. — J oseph W. B loch Division of Industrial and Labor Relations Bureau of Labor Statistics La grève, phénomène de civilisation. By Robert Gubbels. Bruxelles, Université Libre de Bruxelles, Institut de Sociologie, 1962. 334 pp., bibliography. 340 F.B. Using the full range of research techniques and social science perspectives—from case studies to interviews to statistical data on strike durations to regional and industrial relationships—Robert Gubbels attempts in this treatise to provide an BOOK REVIEWS AND NOTES understanding of the strike in a highly sophisti cated and meticulous manner. His extensive bibliography of 14 pages covers sources of ideas and insights from the literature of the United States and Western Europe. Essentially, Gubbels, a member of the Institute of Sociology at Brussels University and formerly with the Belgian Productivity Center as an economist, concludes that the strike is— An act through which a social group manifests both its internal solidarity and its dissociation or alienation . . . from the rest of society: this demonstration is generally, but not necessarily, expressed through a concerted stoppage of work; the social group resorts to this in order to express its demands, discontent, or opinions in those cases where it can find no other means of influencing decisions. While much of his attention is directed at verification and qualification of the several defini tions and interpretations of the strike found in the literature of the United States and West Europe, Gubbels also deals extensively with the legal aspects within the Belgian context (including con ciliation and arbitration) and with the many func tions, both positive and negative, of plural unionism in Belgium. His stress on the sociologi cal significance of the strike is derived from the findings of an interview survey of 300 workers and employers. The final part of the study pro vides a classification of strikes according to scope (general or particularized), specific purpose, object (employer or government), whether it is spon taneous or carefully planned, the nature of the economic context (expanding or contracting econ omy), the methods employed, etc. The author feels that a careful study of the causes of strikes requires a distinction between strikes involving companies or industries and general or regional strikes, a distinction not appli cable to the United States but useful within the European situation. In the first type, the most frequent cause is to be found in the problem of remuneration, including not only wages in its usual sense but also production bonuses, produc tivity pace, night or difficult work assignments, etc. The second most frequent cause relates to “human” problems, such as discipline and harsh attitudes of foremen, discharge for noneconomic reasons, and affronts to workers’ self-respect. While both employers and workers cited wage demands as the most frequent, workers surveyed https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 719 considered the human relations factor as much more important than did employers. This difference of opinion, according to Gubbels, can be explained by the fact that motives advanced during the course of a strike do not always cor respond to the real causes. For example, the determination of wage bases for a new work assignment can result in conflict simply because the production manager, the engineer, or the foreman does not handle it with finesse. For the company head, the strike was caused by the “greediness” of his employees. The union member, on the other hand, feels that it is due to the poor human re lations in the company. But this first explanation is not enough and one might wonder whether the company heads always make a sufficient effort to understand the psychol ogy of workers, to grasp their motivations or reasons for action. As for the causes of general or regional strikes, the picture is not as clear. But they are more related to political features, as well as to general job security. The breadth of this study, the richness of its sources and insights, as well as its level of generali zations, place it in the category of similar attempts by Dunlop, Ross, Kerr, Chamberlain, and others. One irritating aspect of the book is the absence of an index. —H arold L. S heppard Area Redevelopment Administration U.S. Department of Commerce Occupational Disability and Public Policy. Edited by Earl F. Cheit and Margaret S. Gordon. New York, John Wiley & Sons, Inc., August, 1963. Approximately 512 pp. $15. Fourteen students of workmen’s compensation joined efforts in this volume to discuss and con sider some of the key issues and problems that beset the oldest form of social insurance in this country. Under the able guidance of the editors, the contributors covered such matters as “alter nate methods of compensating disability under workmen’s compensation and under private em ployee-benefit plans and social security; approaches to the problem of restoring the severely disabled worker to employment; methods of financing workmen’s compensation; the lessons of foreign experience; and the ever-present problems of 720 administration, especially in the area of medical care and rehabilitation.” Despite the various directions from which many of the subjects were approached, there was a sur prising amount of agreement among the contribu tors. There was little or no dissent from the view that there should be a separate social insurance program for occupationally disabled workers, although they warned that the State programs must be improved and revised if a separate system is to continue to be justified. Among the improvements readily agreed to were expanded coverage, increased benefits, revi sion of procedures for rating and compensating permanent disability cases, and tighter and more effective supervision by State administrative agencies, especially with respect to the quality of medical care and the rehabilitation process. The problem of overlapping benefit rights be tween the State workmen’s compensation laws and the Federal old-age, survivors, and disability in surance program (and to a lesser extent, State temporary disability programs and private em ployee-benefit plans) was weighed by most of the contributors. The view most commonly expressed was that survivors and victims of permanent total disability should be entitled to their full benefits from the Federal program, but that these benefits should be partially or wholly deducted from workmen’s compensation benefits in case of dual entitlement. Other current aspects of workmen’s compensa tion that were examined critically concerned the litigation and adversary procedures that accom pany claims, State funds compared with private insurance companies in terms of efficacy and costs, and the question of Federal-State relationships. In connection with the latter, a very illuminating historical account was given by Arthur Larson of the abortive efforts a few years ago of the U.S. Department of Labor to provide assistance to those States that wanted to improve their com pensation laws through a draft “Model Bill.” Technicians will find several chapters which concentrate on analysis rather than policy most fruitful. One is Mrs. Gordon’s extensive descrip tion of European developments in which she per ceives a tendency to move away from voluntary insurance systems toward a higher degree of cen tralization and toward closer integration with other social security programs. Another is Har https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 land Fox’s detailed examination of private em ployee-benefit provisions that pay benefits in case of work accidents in which he concludes that the overlap with workmen’s compensation for short term benefits is not widespread or significant at present. Still another is Z. L. Gulledge’s report on a 3-year study of vocational rehabilitation in California which included data on the number of work-accident cases needing but not getting re habilitation services, lapse of time between injury and referral for services, and work experience after injury. Finally, there is Stefan A. Riesenfeld’s analysis of private insurance operations in Cali fornia which, in his opinion, tend to produce excess costs. Contributors to the volume, besides the abovenamed individuals and the editors, include Ben jamin Marcus, Ashley St. Clair, Leon Lewis, Jerome Pollack, Earl C. Steele, James N. Morgan, Henry H. Kessler, and Ernst Jokl. — A lfred M. S kolnik Social Security Administration U.S. Department of Health, Education, and Welfare Men, Management, and Mental Health. By Harry Levinson and others. Cambridge, Mass., Harvard University Press, 1962. 205 pp. $5.50. This tight little book purporting to be an analysis of “work and mental health” is an interdisciplinary research effort—the authors represent the social sciences as well as psychiatry. The report proceeds quickly from a description of the research setting (the “Midland Co.”—a gas and electric corporation) to the concepts and ideas that flow from the investigation. One principal notion is that of an “unwritten or psychological contract,” that is, the management and employees have expectations about their respective responsi bilities. According to the authors, the interpre tation and interplay of these expectations in a large measure determine the quality of mental health that emerges in work situations. The process of fulfilling this unwritten contract involves other concepts. Important are interde pendence, social distance, interpersonal relations, and the ability to cope with change. As the authors point out, these ideas are not new, but this is the first time they have been organized to focus on work and mental health. 721 BOOK REVIEWS AND NOTES We are told that much of the framework comes from the human-relations-in-industry school, and it is not always clear how the authors distinguish between “mental health/’ “human relations/’ and “morale.” For example, in analyzing receptivity to change, two broad groups are discussed—the “Elders” and the “Heirs.” The former are the older, more conservative workers and the latter the jmunger, more ambitious workers. The re action of these groups toward change is discussed almost entirely from a traditional human relations perspective. Depending on the reader’s proclivities, he will be annoyed or pleased with the conceptual style of the book; for example, it is not replete with footnotes and methodological excursions. About the only statistic provided is that 874 employees were interviewed. The authors see a link between company goals and favorable mental health. Now an interesting hypothesis might be that an aggressive union could play a major role in positive mental health; but the union in this case is only superficially mentioned. In addition, it is suggested that workers are strongly identified with management’s goals in the community; this conflicts with other research findings that conclude that rank-and-file workers care little about the company as long as the p a y c h e c k k eep s coming in (for example, Robert Dubin’s, Industrial Workers’ World: A Study of the “Central Life Interests” of Industrial Workers). This is a useful book; it is readable, fresh, and stimulating. The executive, or any other practi tioner concerned with human behavior, will find this a source of many valuable insights and ideas. — J ohn W. M cC ollum U. S. Department of Health, Education, and Welfare Family Medical Care Under Three Types of Health Insurance. A report on a survey conducted by the School of Public Health and Adminis trative Medicine, Columbia University, with the cooperation of the National Opinion Research Center of the University of Chicago. New York, Foundation on Employee Health, Medical Care, and Welfare, Inc., 1962. 202 pp. $3.95. This study is an attempt to examine the cost and use of medical care by groups of workers cov https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ered by three different types of health insurance, each of which is an alternative to the traditional fixed-indemnity type of coverage. The plans studied were the New Jersey Blue Cross-Blue Shield plans, which paid service benefits for hospi talization to all subscribers and service benefits for medical and surgical care in the hospital to those with incomes below a certain level; the General Electric plan, that with the exception of a cash indemnity for maternity cases, paid comprehensive major medical benefits for a wide range of covered services (including psychiatric services); and the Kaiser Foundation Health plan, which provided direct comprehensive service from an organized group of physicians in an affiliated chain of hospi tals. These plans are not held to be typical but, rather, to be representative of the best plans of each type. Samples of subscribers and their dependents were drawn from each plan. The subscribers in the “Blues” and the G.E. plan were all members of the International Association of Machinists; the Kaiser subscribers were drawn from a number of “blue-collar” unions in the San Francisco area. In order to estimate price differentials among the areas covered by each plan, a fourth sample of railroad workers covered by a fixed-indemnity plan and residing in each of the areas under study w a s d raw n. From the la s t sa m p le, price in d e x es were derived to deflate expenditure data from the other samples. The results of this study are really of two types. The book is organized so that each plan is dis cussed in two chapters, one describing the organi zation and provisions of the plan and the other dealing with the medical care experience under that plan. In this sense, there are three separate studies as well as a set of comparative findings. While the results of this study can only be skimmed in this review, a number of the findings with respect to the individual plan merit mention. For example, while the coverage under the G.E. comprehensive major medical plan was quite broad, the survey noted that many subscribers did not file all of the claims to which they were entitled. This implies a difference between paper coverage and effective coverage. The survey also discovered that under the Kaiser plan, which offered an option of less coverage for dependents at a reduced cost, the total outlay for matched groups of dependents was about the same under 722 MONTHLY LABOR REVIEW, JUNE 1963 both options, so that the higher prepayment for full coverage was offset by lower out-of-pocket expenditures. In comparing the three plans, the study found similar patterns of utilization for all groups, though some differences were noted among age groups. The Blue plans covered nearly the same proportion of charges for medical care as did the G.E. major medical plan. Despite the higher level of prices in the area covered by the Kaiser plan, the outlay per family for insurance and medi cal care was almost the same ($280) as for the Blue plans ($288), despite the higher number of home and office visits for the Kaiser plan (5.9) than for either the Blue plan (4.1) or the G.E. plan (4.6). In general, this study is well done and, as re search findings go, is well written. The separation of the findings on each of the individual plans con tributes much to the ease with which this material can be digested, as does the summary which pre cedes the main text. By way of criticism, it would have been illuminating to have had a breakdown of the hospitalization experience by diagnostic category. This would eliminate the necessity of comparing the three plans on the basis of the similarity among the groups under each plan, about which too little is known to state with any great assurance that the differences noted among these plans are the result of differences in the plans themselves. However, even with these reservations, the study is an important one and anyone interested in health insurance from a practical or an academic point of view will find this book worth reading. — G e r a l d R o se n t h a l Department of Economics Harvard University A Review of the Medical Services in Great Britain. A report of the Medical Services Review Committee. London, Social Assay, 1962. 266 pp. 18s. This is the report of the Medical Services Review Committee, known as the Porritt Report after the committee chairman, Sir Arthur Porritt. The committee was established by the nine major medical societies in Britain “to review the pro vision of medical services to the public, and their https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis organization, in the light of 10 years’ experience of the National Health Service and to make recommendations.” Because of the nature of the British medical system, its report is basically an evaluation of the National Health Service. The committee’s 4-year evaluation is based upon reports of subcommittees on specific aspects of the health service and study of various official publications about the health service and memo randa prepared by medical organizations. The committee also received oral evidence from both medical and lay sources and gathered information by questionnaires sent to organizations and the public. Perhaps unfortunately, the report is not a technical one prepared by specialists in the administration of medical care. The report states, “so far as practical, we confined ourselves to broad principles. In general we set out to deter mine the advantages or disadvantages to patient, the community, and the doctor, through the manner in which the health services have been developed during the past 14 years.” The first issue the committee faced—and probably the one of greatest interest to foreign observers-—is whether or not the comprehensive National Health Service as it has developed in Britain is sound and should be continued. The committee “had no difficulty in reaching the conclusion that basically, the concept of a com prehensive national health service is sound.” After reaching this conclusion, the committee analyzed specific aspects to determine whether changes were needed to improve the service. Many of these (such as the gulf between general practitioners and the hospital and specialist services, which some claim isolates the general practitioner, lowers his status, and negatively affects the quality of care) have been the subject of recurring debate. Another issue concerned problems of coordinating the three separate branches of the service at the local level: the Medical and Dental Service, the Hospital and Consultant [specialists] Services, and the Public Health and Social Services. In all, the report covers 15 specific subjects. A number of these, including Research, Medical Education, Casualty and Accident Services, and Occupational Health Services, involve primarily problems of changing medical technology and circumstances external to the service. For this 723 BOOK REVIEWS AND NOTES reason they are issues for developed nations generally. Probably of greatest interest to nonmedical readers outside of Britain are the sections of The Organization and Planning of the National Health Service, The National Health Service and the National Economy, Private Practice, and Pro fessional Freedom and Doctor’s Obligations. The committee’s major conclusions are: The present tripartite administration has isolated doctors in the three main branches of the Service. . . . At present, funds are allocated both from central and local government to different authorities responsible in the same area, for various parts of the Service. This method of financing the Service has led to isolated rather than co ordinated policies, and to a loss of economy and efficiency. . . . We recommend that the responsiblility of the ad ministration and coordination of all the medical and an cillary services in any area should be in the hands of one authority. . . . Economical operation of any public service carries with it the danger that the Government may seek to lay down standards and impose a uniformity which is incompatible with professional freedom. We stress that the only safeguard is to ensure an alternative to which doctors and public alike can turn, by the encouragement of private practice. We have considered whether a direct payment by the patient at the time he seeks advice would lead to a more enlightened use of the National Health Service. We think that the possible advantages of a direct payment should be the subject of continuing study. A patient should never be denied the right or oppor tunity of seeking private medical advice. We attach the greatest importance to the preservation of private medical practice which events of the past 14 years have tended to discourage. . . . Private bed accommodation both in Education and Training By Edmund J. King. New York, Bobbs-Merrill Co., Inc., 1962. 380 pp., bibliography. $6. W o rld P e rsp e c tiv e s in E d u c a tio n . By Robert H. Plummer and Clyde E. Blocker. Chicago, Science Research As sociates, Inc., 1963. 48 pp. (Guidance Series Booklets, 156.) N.H.S. hospitals and outside the Service is grossly in adequate. . . . Private beds should be available to general practitioners. We are satisfied that the doctor has retained his clinical freedom. In addition to recommendations on specific aspects of the Service, the committee reached two broad conclusions on steps to be taken to improve it. First, it stressed the need for more extensive long-range planning; second, it stated that greater efforts should be made to impress upon the public the fact that there is no such thing as a free health service. The committee’s specific recom mendations both reinforce and, to an extent, provide mechanisms for achieving the goal of better planning. The committee’s grounds for its second broad conclusion are not stated, nor are any means for accomplishing the goal suggested. Whether one agrees with them or not, the con clusions and recommendations of this committee, which represented the medical profession of Great Britain, are to some extent a measure of the suc cess of the National Health Service. They are constructive rather than negative, and suggest only limited changes. I t is rather disappointing, however, that the committee did not examine the quality of general practitioners’ services, and the role of the medical profession in promoting the quality of care and in improving the health service. — H oy P ench ansk y Instructor in Medical Care Administration Harvard School of Public Health T r a in in g A c tiv itie s U n d e r the M a n p o w e r D ev elo p m en t a n d T r a in in g A c t: R e p o r t o f the S e c r e ta ry o f H e a lth , E d u c a tio n , a n d W e lfa re to the C on gress. Washington, U.S. Department of Health, Education, and Welfare, Office of Education, 1963. 87 pp. (OE-80027.) 55 cents, Superintendent of Documents, Washington. C ollege, C a reers, a n d Y o u . N e e d e d b y M illio n s : A B r o a d e r a n d B o ld er R e h a b ilita tio n P ro g r a m . By Wendell Johnson. { I n Journal of Rehabilitation, Washington, January-February 1963, pp. 13-14, 41, et seq.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Mary Furlong Moore. New York, Doubleday & Co., Inc., 1963. 261 pp. (Dolphin Books.) 95 cents. C areer G u id e f o r Y o u n g P e o p le . By William S. Kalb, M.D. New York, Richards Rosen Press, Inc., 1963. 158 pp., bibliography. (Careers in Depth.) $2.95. Y o u r F u tu re a s a P h y s ic ia n . 724: MONTHLY LABOR REVIEW, JUNE 1963 N u r s in g . By Virginia B. McDonnell. New York, Richards Rosen Press, Inc., 1963. 157 pp., bibliography. (Careers in Depth.) $2.95. Institute, 1963. 27 pp. (Company Approaches to Industrial Relations Series, 2.) $2. Y o u r F u tu re i n C areers fo r T o m o rrow : C areers i n P e rs o n n e l A d m in is tr a tio n , by Sarah Splaver (107 pp.); C areers i n the F oreig n S ervice, by Achilles N. Sakell (118 pp.). New York, Henry Z. $3.50 each. Walck, Inc., 1962. C oal a n d C on flict: A S tu d y o f I n d u s tr ia l R e la tio n s at C o llie ries. By W. H. Scott and others. Liverpool, Liverpool University Press, 1963. 214 pp. Research Series.) Bibliographies. B a ttle f o r the H o s p ita ls : A S tu d y o f N o n - P r o f it H o s p ita ls . By Estelle a n d the P h y s ic a lly H a n d ic a p p e d C h ild . By Irving Ratchick and Frances G. Koenig. Chicago, Science Research Associates, Inc., 1963. 64 pp., bibliography. 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R e p o r t o f the [C o n g ressio n a l] J o in t E co n o m ic C o m m ittee on the J a n u a r y 1 9 6 3 E c o n o m ic R e p o r t o f the P r e s id e n t W ith M in o r it y a n d O ther V ie w s . Washington, 1963. (S. Rept. 78, 88th Cong., 1st sess.) 35 cents, Super intendent of Documents, Washington. F e d e ra l O rg a n iza tio n f o r S c ie n tific A c tiv itie s , 1 9 6 2 . ington, National Science Foundation, 1963. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wash 598 pp. P u b lic R e la tio n s: A H a n d b o o k f o r B u s in e s s , L a b o r, a n d C o m m u n ity L ea d e rs. By Dave H yatt. Ithaca, N.Y., Cornell University, New York State School of In dustrial and Labor Relations, 1963. 94 pp. (Bul letin 48.) 50 cents; free to New York State resi dents. Current Labor Statistics TABLES A.—Employment 728 729 733 737 A -l. A -2 . A -3 . A -4 . 737 A -5 . 738 A -6 . Estimated total labor force classified by employment status and sex Employees in nonagricultural establishments, by industry Production workers in nonagricultural establishments, by industry Employees in nonagricultural establishments, by industry division and selected groups, seasonally adjusted Production workers in manufacturing industries, by major industry group, seasonally adjusted Unemployment insurance and employment service program operations B.—Labor Turnover 739 B -l. Labor turnover rates, by major industry group c.—Earnings and Hours 742 754 754 0 -1 . C -2 . 0 -3 . 755 757 C -4 . 0 -5 . 757 0 -6 . Gross hours and earnings of production workers, by industry Average weekly hours, seasonally adjusted, of production workers in selected industries Average hourly earnings excluding overtime of production workers in manufacturing, by major industry group Average overtime hours of production workers in manufacturing, by industry Indexes of aggregate weekly man-hours and payrolls in industrial and construction activities Gross and spendable average weekly earnings of production workers in manufacturing D.—Consumer and Wholesale Prices 758 D -l. 759 760 762 763 D -2 . D -3 . D -4 . D -5 . Consumer Price Index—All-city average: All items, groups, subgroups, and special groups of items Consumer Price Index—All items and food indexes, by city Indexes of wholesale prices, by group and subgroup of commodities Indexes of wholesale prices for special commodity groupings Indexes of wholesale prices, by stage of processing and durability of product E.—1 764 E —1. Work stoppages resulting from labor-management disputes F.—Work Injuries F -l. Injury-frequency rates for selected manufacturing industries 1 « This table Is included in the January, April, July, and October issues of the Review. N ote: With the exceptions noted, the statistical series here from the Bureau of Labor Statistics are described in Technique» of Preparing Major B L S Sta tistical Series (BLS Bulletin 1168, 1954), and cover the United States without Alaska and Hawaii. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 727 MONTHLY LABOR REVIEW, JUNE 1963 Y28 A.—Employment T able A -l. Estimated total labor force classified by employment status and sex [In thousands] Estimated number of persons 14 years of age and over i Apr. Mar. Feb. Annual aver age 1962 1963 Employment status Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 1961 1960 Total, both sexes Total labor force______________________ 74,897 74,382 73,999 73,323 74,142 74,532 74,923 74,914 76,554 76,437 76,857 74,797 73,654 74,175 73,126 72,161 71,650 71,275 70,607 71,378 71,782 72,187 72,179 73,695 73,582 74.001 71,922 70, 769 71,603 4,063 4,501 4,918 4,672 3,817 3,801 3,294 3,512 3,932 4,018 4,463 3,719 3,946 4,806 70,612 3,931 5.8 5.5 6.4 5.5 6.7 5.6 6.1 5.8 5.6 5.8 5.5 5.8 5.3 5.7 1,597 1,553 1,814 1,996 1,697 1,960 1,546 1,681 1,702 1,805 2,536 1,523 1,527 1,897 654 630 940 1,037 664 709 629 964 963 1,315 1,162 840 684 672 292 212 307 411 229 295 358 255 230 598 485 361 300 371 684 612 525 469 696 418 428 341 449 764 345 608 728 743 477 593 584 804 691 453 397 447 576 666 719 619 541 681 68,097 67,148 66,358 65, 935 67,561 67,981 68, 893 68,668 69,762 69,564 69, 539 68,203 66, 824 66,796 63, 424 62,812 62,309 61,730 63,495 63,098 63. 418 63,103 63,993 63,500 63,249 62,775 61, 863 61,333 46, 505 48,669 47,063 48, 480 49,175 45,107 48,047 49,684 47;264 46,372 49,209 49, 711 49,035 47,257 10, 455 7,588 8, 573 7, 235 7,932 11,894 9.426 7,265 6,849 6, 598 6,927 7,209 7,213 7,522 3, 856 4,119 4,238 3] 845 4; 143 4,074 3, 811 3,475 3', 222 3; 185 3,365 3', 912 3,794 3,610 2,608 2,436 2,432 2,172 2,243 2,021 2,133 2,680 6, 657 7,343 3,748 1,944 1,822 2,946 4, 673 4,337 4,049 4,206 4,066 4,883 5,475 5, 564 5, 770 6,064 6,290 5,428 4.961 5,463 3,198 2,587 2,261 2,522 2,352 3,262 3,688 3,693 3,900 4,270 4,377 3,801 3,196 3,540 907 1,069 1,232 1,310 1,285 1,215 1,346 1,149 1,116 1,245 987 1, 041 1,042 1,040 462 447 467 398 426 404 446 475 477 483 444 490 388 305 172 241 316 153 182 133 122 89 249 129 101 200 129 267 5.6 1,799 823 353 602 454 66, 681 60,958 46,388 8.249 3,279 3,042 5,723 3,811 1,279 444 190 Civilian labor force......... ........................... Unemployment....................................... . Unemployment rate seasonally adjusted * Unemployed 4 weeks or less_________ Unemployed 5-10 weeks------------------Unemployed 11-14 weeks-----------------Unemployed 15-26 weeks___________ Unemployed over 26 weeks--------------Employment_______________________ Non agricultural____________- ______ Worked 35 hours or more.................... Worked 15-34 hours______________ Worked 1-14 hours-----------------------With a job but not at work*.............. Agricultural...... ........................... .......... Worked 35 hours or more. ________ Worked 15-34 hours____ __________ Worked 1-14 hours----------------------With a job but not at w ork».............. Males Total labor force............................ ................ 50,010 49,675 49, 508 49,269 49, 574 49,719 49,974 50,110 51,657 51,733 51,832 50,272 49,568 49,918 47,025 2,541 44,485 39,807 32, 511 4 ;1 0 0 1,360 1,836 4,678 3,365 792 348 172 Total labor force______________________ 24,886 24, 707 24,492 24,054 24, 568 24,812 24,949 24,804 24,897 24,703 25,026 24, 525 24,086 24,257 23,619 Civilian labor force____________________ U n em p loyment............................. ............. Employment_______________________ Nonagricultural___________________ Worked 35 hours or more__________ Worked 15-34 hours............................. Worked 1-14 hours___ ___________ With a job but not at work 1.............. Agricultural............................................. Worked 35 hours or more.................... Worked 15-34 hours______________ Worked 1-14 hours............. ................ With a job but not at work *........ . 23,587 1,390 22,196 21,151 13, 627 4,149 1,919 1,206 1,045 445 486 96 17 47,306 2,600 44, 706 40, 762 32 806 4, 941 1,658 1,357 3, 945 2,888 700 247 112 46,975 3,013 43. 962 40,251 33,648 3,439 1,688 1,476 3,711 2,383 730 384 216 46, 816 3, 293 43. 523 39, 994 32, 710 4,026 1,779 1,481 3, 529 2,074 786 423 246 46, 585 3,080 43, 505 39,839 33,648 3. 251 1,593 1,351 3,666 2,281 751 400 232 46,841 2,522 44,319 40, 782 33,946 3,612 1,760 1,461 3,537 2,181 656 424 276 47,001 2,259 44,743 40. 703 31, 704 6,130 1,618 1,250 4,040 2,908 692 307 133 47,269 1,881 45,387 41.131 33,774 4,428 1,628 1,302 4,256 3,168 694 281 114 47,406 1,991 45,415 41, 052 34,769 3,261 1,433 1, 588 4,363 3,180 780 309 92 48, 830 2,327 46, 503 41,899 33,483 3,316 1,449 3,652 4.604 3,327 819 293 165 48,911 2,406 46,505 41, 732 32,952 3,183 1,337 4,261 4,773 3, 634 687 332 121 49,009 2,698 46,310 41,421 34,624 3,244 1,518 2,035 4,889 3,743 733 305 109 47,430 2,296 45,134 40.687 34,579 3,223 1,713 1,171 4,447 3,365 706 291 85 46,717 2,534 44,183 39,925 34,043 3.282 1,578 1,021 4,258 2,916 781 400 161 49,507 47,378 3,060 44,318 39,811 32.984 3, 587 1,511 1,729 4,508 3,132 827 370 179 Civilian labor force........................................ Unemployment_____________________ Employment_______________________ Nonagricultural___________________ Worked 35 hours or more__________ Worked 15-34 hours............................ Worked 1-14 hours_______________ With a job but not at work *.............. A gricultural........................................... Worked 35 hours or more.................... Worked 15-34 hours______________ Worked 1-14 hours.----- ---------------W ith a job but not at work ......... . Females 24, 854 1,463 23,391 22, 663 13, 699 5, 515 2,198 1,251 728 311 341 59 17 24,675 1,489 23,186 22, 560 15,022 4,149 2,430 960 625 204 312 83 26 24, 460 1,625 22, 835 22, 315 14,356 4, 547 2, 459 950 520 187 255 57 20 24,022 1,592 22, 430 21,890 14,835 3,983 2, 252 820 540 243 236 44 17 24,537 1,295 23,242 22, 714 15! 228 4,319 2,383 782 528 172 252 66 40 i Estimates are based on information obtained from a sample of households and are subject to sampling variability. Data relate to the calendar week ending nearest the 15th day of the month. The employed total includes all wage and salary workers, self-employed persons, and unpaid workers in family-operated enterprises. Persons in institutions are not included. Because of rounding, sums of individual items do not necessarily equal totals. s Unemployment as a percent of labor force. *Includes persons who had a job or business but who did not work during the survey week because of illness, bad weather, vacation, or labor dispute. Prior to January 1957, also included were persons on layoff with definite Instructions to return to work within 30 days of layofl and persons who had https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24,781 1. 543 23,238 22,395 13,404 5,763 2,457 771 843 355 377 91 27 24,918 1,413 23, 505 22,287 11]273 4,998 2,184 832 1,219 520 538 145 15 24,773 1,520 23, 253 22,051 14,914 4,004 2,042 1,092 1,201 512 529 152 9 24,865 1,605 23,260 22,094 Bi 782 3,533 1,773 3,005 1,166 573 466 110 17 24,671 1,611 23,059 21.768 13, 420 3,415 1,848 3,082 1,291 636 530 116 12 24,993 1, 764 23,228 21,827 14,583 3,682 1,847 1,713 1,491 634 613 141 13 24,492 1.423 23,069 22,088 15,130 3,985 2,199 773 982 438 443 97 4 24,052 1,411 22, 641 21,938 14,993 3,929 2,216 801 703 281 335 75 11 24,225 1,747 22,478 21, 523 14,273 3,934 2,098 1,217 955 408 419 107 22 new jobs to which they were scheduled to report within 30 days. Most of the persons in these groups have, since that time, been classified as unem ployed. N ote: For a description of these series, see Explanatory Notes (in Employ ment and Earnings, U.S. Department of Labor, Bureau of Labor Statistics, current issues). Figures for periods prior to April 1962 are not strictly comparable with current data because of the introduction of 1960 Census data into the esti mation procedure. The change primarily affected the labor force and em ployment totals, which were reduced by about 200,000. The unemployment totals were virtually unchanged. 729 A.—EMPLOYMENT T able A-2. Employees in nonagricultural establishments, by industry 1 [In thousands] Annual average 1962 1963 Industry Apr . 3 Total em ployees........................ ................. Mar . 3 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 1961 1960 55,862 55,063 54,780 54,833 56,444 56,214 56,333 56,252 55,709 55,493 55,777 55,209 54,849 54,077 54,347 612 80.1 25.2 28.1 614 80.7 25.0 28.0 617 78.9 23.3 28.0 628 78.3 24.4 28.0 638 78.9 25.1 27.8 645 79.4 25.9 27.7 651 80.3 26.4 27.9 658 83.8 28.3 28.8 648 87.8 29.0 28.8 661 89.2 29.8 29.2 657 88.5 29.7 28.9 647 86.9 28.4 28.9 87. 1 27.5 28.9 709 93.3 33.2 28.3 Hnal mining Bituminous_______________________ 136.0 127.8 139.7 131.3 140.4 131.9 140.2 131.6 142.2 133.4 143.8 135.2 142.6 134.2 141.9 133.4 129.9 120.7 142.8 134.2 145.0 135.9 146.5 137.6 155.5 145.1 182.2 168.2 Crude petroleum and natural gas............. ........... Crude petroleum and natural gas fields. Oil and gas field services____________ 293.1 170.9 294.1 171.5 12 2 .2 1 2 2 .6 295.3 171.6 123.7 301.2 171 6 129.6 300.1 172.1 128.0 303.0 172.8 130.2 307.2 175. 5 131.7 309.2 178.0 131. 2 310.1 178.0 132.1 307.9 177.5 130.4 304.0 174.9 129.1 302.0 173.8 128.2 308.9 176.8 132.2 313.9 181.7 132.2 Quarrying and nonmetalllc mining.......... 10 2 .6 10 2 .2 108.2 116.4 119.1 12 1.0 122.9 12 0 .2 12 0 .6 119.3 111.7 114.9 119.5 Mining______________________________ Metal mining _________________ Iron ores ______________________ flnppAr n r as 622 _________ 99.3 2,316 2,241 2,349 2,532 2,801 2,936 2,978 3,031 2,982 2,839 718.5 693.7 731.4 786.2 861.7 889.1 903.2 929.2 916.4 873.0 General building contractors__________ 413.3 383.8 409.6 471.1 579.3 648.4 667.6 685.4 675.0 624.5 Heavy construction__________________ Highway and street construction.......... ........... 208.3 185.5 201.4 244.9 326.9 379.0 394.5 405.2 393.6 359.6 205.0 198.3 208.2 226.2 252.4 269.4 273.1 280.2 281.4 264.9 O tb p r h e a v y n n n s tr n e tln n 1,184.2 1,163.0 1,207.8 1,274.4 1,360.4 1,398.8 1,407.1 1,416. 5 1,390.9 1,341.0 Special trade contractors______________ Manufacturing_______________________ 16,711 16,607 16,546 16,551 16,727 16,891 17,028 17,127 16,931 16,782 16,870 D n rn h le goods 9,520 9,428 9,399 9,407 9,473 9,533 9, 562 9,571 9,402 9,463 9, 547 N o n d u r a b le g o o d s . . . . 7,191 7,179 7,147 7,144 7,254 7,358 7,466 7,556 7, 529 7,319 7,323 2,575 fln n trn r t r n n s tr n rtin n 666 2,749 2,589 2,760 2,882 843.0 808.5 860.8 911.7 594.7 506.6 565. 6 581.3 335.4 268.4 302.8 302.4 259.3 238.2 262. 9 278.9 1,311.2 1,273.8 1,333.2 1,388.8 16,682 16,636 16,267 16,762 9, 475 9,422 9,042 9,441 7,207 7,214 7,225 7,321 D u ra b le g o o d ) O r d n a n c e a n d a c c e s s o rie s Ammunition, except for small arms___ Sighting and fire control equipment__ 216.3 217.4 113.7 49.9 53.8 219.2 114.3 51.1 53.8 220.3 114.1 52.1 54.1 2 2 1.0 220.7 114.0 53.0 53.7 2 11.6 2 11.0 2 0 0 .6 115.0 53.4 53.2 217.0 113.7 53.3 50.0 2 11.8 114.7 52.6 54.3 220.4 114.2 52.5 53.7 2 2 1.6 114.8 52.0 54.2 110.7 52.5 48.6 108.5 52.4 50.7 108.2 52.5 50.3 103.1 51.1 46.5 187.3 93.9 50.0 43.4 592.6 575.0 75.5 260.6 574.7 80.6 257.5 579.2 82.4 259.7 592.0 608.6 ; 94.0 269.2 620.7 97.2 273.9 629.9 277.1 639.6 104.5 280.1 632.9 103.7 279.0 635.8 261.9 281.6 609.6 90.3 272.5 591.3 82.6 266.5 600.5 91.5 268.9 636.8 92.6 294.7 141.1 37.6 60.2 140.0 37.4 59.2 140.6 37.5 59.0 143.6 38.7 59.7 146.4 39.0 60.0 148.9 40.0 60.7 150. 7 39.6 61.3 152.9 40.5 61.6 149.2 40.8 60.2 149. 6 41.2 61.6 145.8 40.3 60.7 142.6 39.4 60.2 141.3 40.8 58.0 146.6 43.2 59.6 377.4 377.9 271.6 28.8 34.5 43.0 377.1 270.4 28.9 34.8 43.0 379.5 270.3 30.0 35.4 43.8 383.3 273.5 30.5 34.9 44.4 387.1 275. 8 30.7 35.7 44.9 388.2 276.9 28.5 37.8 45.0 388.0 276.0 28.2 38.0 45.8 387.6 273.3 30.3 37.7 46.3 378.3 266.5 29.2 37.2 45.4 382.3 269.1 29.7 37.1 46.4 379.3 377.1 268.8 269.1 29. 1 28.5 36.4 35.8 45.0 43.7 367. 4 259. 6 27.4 36.2 44.2 383.4 271. 1 28.3 39.0 45.1 574.0 550.1 28.8 540.7 29.0 660.3 30.3 99.7 37.9 578.2 31.0 100.4 40.3 70.6 44.5 154. 7 121.4 592.8 30.4 10 2 .8 40.8 71.4 45.3 160.7 41.4 72.5 44.8 163.2 122.7 589.5 29.6 103.9 41.3 71.8 43.9 162.2 122.4 566.8 27.9 10 1.8 595.6 590.1 30. 1 29. 7 103.1 103.0 41.5 41.7 72.1 73.1 44.2 43.5 165.1 163.0 123.5 123.0 579.1 28.6 10 0 .0 545.2 29.2 98.4 30.3 65.9 43.4 138.3 118.8 588.0 30.5 10 1.2 595.3 31.1 102.9 42.8 76.1 47.1 155.4 124.0 O t h e r o r d n a n c e a n d a c c e s s o rie s ......... Lumber and wood products, except furniture ______________________ Logging camps and logging contractors. Sawmills and planing mills__________ Millwork, plywood, and related p r o d nets Wooden containers_________________ Miscellaneous wood products________ Furniture and fixtures_______ ______ _ T T onsehold f u r n i tu r e Office furniture____________________ Partitions; office and store fixtures____ Other furniture and fixtures_________ Pf.one, c la y , a n d g la s s p r o d u c t s .............. Flat glass_________________________ Glass- and glassware, pressed or blown. C le m e n t, h y d r a u l i c Structural clay products____________ Pottery and related products________ Concrete, gypsum, and plaster products. Other stone and mineral products 35.6 6 6 .0 43.5 141.6 118.5 34.6 64.8 43.4 136.0 118.3 8 8 .1 6 8 .6 43.7 144.9 12 0 .2 2 2 1.6 1 2 2 .2 10 1.2 10 1.8 40.0 71.0 43.5 157.9 566.2 29. 0 100.3 39.0 69. 5 43.9 149.3 12 2 .0 12 0 .8 10 1.8 10 0 .6 40.0 70. 7 43. 4 150 2 119.5 Primary metal industries_____________ 1,172.0 1,152.8 1,137.6 1,124.2 1.124. 4 1,118.7 1,123.1 1,136. 4 1,134. 7 1,134.7 1,166. 0 1,193. 8 1,221.3 1,142.3 1.228. 7 583.7 569.4 555.8 555.3 550.8 555.2 566.3 567.5 570.8 594.9 622.5 650. 1 599 9 652.5 Blast "furnace and basic steel products 196.8 196.2 195.3 195.3 194.9 195.5 196.6 193.8 194.0 196.9 196. 5 197.0 186 0 203 6 Iron and steel foundries. ___________ 68.5 6 8 .6 67. 4 70.8 67.8 6 8 .8 67.4 6 8 .2 68.7 69.1 69. 4 68.9 66.9 Nonferrous smelting and refining_____ 66.9 Nonferrous rolling, drawing,- and 177. 6 177.5 169. 9 175.6 177.3 178.0 176.8 176.7 177.5 177.5 176.6 176.8 177.3 176.8 extruding_______________________ 67.4 6 6 .6 61. 4 65. 1 6 6 .0 67. 1 67. 1 67. 1 64.7 68.4 68.4 67.5 6 8 .1 6 8 .1 Nonferrous foundries_______________ 61.2 61.6 57.8 61.1 60. 1 61.4 60.6 58.7 59.5 60.7 60.4 60.1 60.2 60.0 Miscellaneous primary metal industries. 1 , 1 2 1 . 2 1,111.3 1,076.4 1,128.6 1,129.0 1,115.5 1,115.8 1,135.7 1,128.3 1,134.1 1,111.3 1 , 1 2 2 . 1 1,108.1 Fabricated metal products____________ 1,117.2 1,108.2 62.9 61.6 60.6 62.5 65.4 65.7 65.2 61. C 65.3 57.9 57.6 58.3 59.6 59.0 Metal c a n s _______________________ Cutlery, handtools, and general hard ware___________________________ 139.9 140.7 141.0 141.5 141.3 140.0 138.4 134.7 133.6 138.7 138.4 137.7 129.7 136.0 Heating equipment and plumbing 79.0 76.3 75.2 77.0 76.2 76.7 79.0 78.8 78.6 77.8 76.0 77.0 77.2 77.0 fixtures_________________________ — Fabricated structural metal products. _ 314.8 313.9 317.0 322.3 325. 8 330.9 335. 1 333.7 334.4 332.3 326. 9 321. 4 325. 8 334.3 80.4 85.6 86. 1 87.8 87.0 87. 1 87.5 87. 7 87.0 87.8 8 8 .0 88.3 87.9 88.5 Screw machine products, bolts, etc....... ....... 191.7 192.2 195.3 197 1 196.4 196. 4 193.2 180.2 184.3 188.3 191 1 189.0 179.4 197.7 Metal stampings__________________ 63.9 64.2 67.7 67. 4 6 8 9 67 6 67.8 69.6 69.2 6 6 .0 67.3 70.0 6 6 .1 Coating, engraving, and allied services.. 65.6 56.0 53. 7 56.9 55.6 57. 1 56.8 55.7 57.4 57.7 56.8 57.0 56.2 56.4 56.1 Miscellaneous fabrieatedwire products. 114.4 113.7 113.9 107.8 112.4 114.7 114.6 113.6 114.3 113.9 1 1 1 . 8 1 1 2 . 1 1 1 2 . 2 1 1 2 . 0 Miscellaneous fabricated metal products. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 730 MONTHLY LABOR REVIEW, JUNE 1963 T able A-2. Employees in nonagricultural establishments, by industry 1—Continued [In thousands] 1963 1962 Annual average Industry Apr.» Mar.» Feb. Jan. Dee. Nov. Oct. Sept. Aug. July June May Apr. 1901 1960 Manufacturing—Continued Durable goods— Continued Machinery............................. 1 , 489.1 1,481.3 1,474.0 1,469.3 1,464.2 1,462.9 1,463.1 1,466.7 1,463.9 1,468.1 1,479.5 1,468. 6 1,466.4 1,401.1 1,471.4 Engines and turbines________________ 88.4 88.3 87. ( 88.5 8A.Î 86.5 86. £ 86. £ 85.7 sa e 86.7 86.5 80.0 86.8 Farm machinery and equipment............... 132.4 130.5 125.1 120.8 117.4 118,0 118,7 117.7 119.0 1 2 0 . 5 121.0 121.0 112.4 114.1 Construction and related machinery____ 209.2 208.8 208.7 209.0 308.6 207.8 211.1 212.2 211.2 2 1 2 . 0 209.0 207.8 198.1 219.7 Metalworking machinery and equip m ent___________________________ _ 261.6 260.7 259.5 259.5 258.3 256.4 255.0 253.1 256.7 259.7 260.5 260.8 243.8 258.2 Special industry machinery____________ 169.8 169.2 169.9 170.8 170.8 17L6 17L 6 172.4 171S 173.5 171.5 170.9 167.9 173.8 General industrial machinery__________ 221.9 221.2 222.2 220.5 222.5 223.4 223.2 222.9 222.0 2218 220.1 219.9 211.1 223.0 Office, computing, and accounting machines_______ _____________ ____ 148.7 148.7 149.6 150.0 150.4 150.5 151.9 152.1 151.0 151.8 151.7 151.9 149.3 145.7 Service industry machines___________ *" 97.4 95.3 95.3 96.0 96.2 96.7 95.9 96.3 99.7 101. C 99.6 98.7 94.1 99.8 Miscellaneous m ach in ery ............... . ” 151.9 150.7 150.5 151.3 152.6 152.7 151.7 150.3 149.9 151.6 148.5 148.9 144.6 150.4 Electrical equipment and supplies______i 5 2 1 . 3 1,525.8 1,533.7 1,543.5 1,556.0 1,661.1 1,561.2 1,556.7 1,538.9 1,529.1 1,534.2 1,513.1 1,505.2 1,436.0 1,445.0 Electric distribution-equipment______ _ ■ 160.2 160.7 161.9 163.1 163.5 163.5 163.3 163.2 16L7 162.2 159.3 159.8 160.9 ‘ 163.2 Electrical industrial apparatus_______ T174.2 #¡174.8 175.3 170.4 176.9 176.6 176.9 175.7 177.0 178.3 175.5 174.8 170.5 177.4 Household appliances______________ 155.5 154. 4 154.6 155.2 154.8 155.6 155.0 151.9 150.7 154. 3 154 R Electric lighting and wiring equipment. A138.3 138.2 137.6 138.6 188.9 139.4 iaa 8 136.1 133.6 135.4 134.8 134.2 12a 5 132.7 Radio and TV receiving sets_________ 124.6 128.2 132.9 135.7 135.2 132.2 129. 9 127.8 122 9 h r a « 1 2 1 .0 1 2 2 .1 Communication equipment._________ 418.7 423.9 426.5 428.9 427.4 424.7 42X6 420.0 415.7 416.2 412.3 410.8 378.4 366.9 Electronic components and accessories.. ” 1241.0 241.8 244.5 246.5 247.6 247.6 24a 0 246.5 24A 7 245.7 240.0 238.5 227.2 225.2 Miscellaneous electrical equipment and supplies___________________________ 116.9 117.8 118.5 119.1 119.1 118.1 116.9 113.3 113.8 114.3 113.5 114.3 106.4 111.4 Transportation equipment____________ 1 7 1 5 . 9 1,701.9 1,702.5 1,709.2 1,705.6 1,695. 4 1,683.9 1,66& 7 1,536.2 1,647.4 1,660.4 1,650.6 1,632.2 1,522.5 1,017.3 Motor vehicles and equipment_______ ’ 747.8 751.3 761.2 7614 755.1 746.8 731.8 607.3 727.5 748.4 738.3 720.9 047.9 727.6 Aircraft and parts__________________ 727.6 728.2 730.8 729.7 726.5 719.7 719.0 709.7 705.1 695.6 692.8 691.9 669.4 673.8 Ship and boat building and repairing.. 152.4 150.1 148.5 145.1 144.0 145.5 144.3 144.3 141.8 142.6 144.1 145.5 142.2 141.0 Railroad equipment. ............................ ............. 43.2 42.8 41.9 42.0 45.5 44.8 45.4 43.6 44.4 45.5 44.4 43.8 35.8 43.8 Other transportation equipment_____ 26.5 27.8 28.7 2as 29.4 25.9 29.4 28.7 28.5 30.3 31.0 30.1 27.3 31.1 Instruments and related products______ Engineering and scientific instruments. Mechanical measuring and control devices.................. ............................... Optical and ophthalmic goods_______ Surgical, medical, and dental équip e m e n t___________________________ Photographic equipment and supplies.. Watches and clocks________________ 3 0 3 .7 Miscellaneous manufacturing industries.. Jewelry, silverware, and plated w are... Toys, amusement, and sporting goods.. Pens, pencils, office and art m aterials.. Costume jewelry, buttons, and notions. Other manufacturing industries______ 339 5 362.1 73.2 361.2 73.3 361.3 74.2 362.0 74.4 352.1 74.8 361.6 74.4 361.3 74.1 361.3 73.6 357.4 713 358.2 72.6 355.8 72.5 355.2 72.5 340.4 73.9 354.2 75.7 97.6 42.0 97.6 41.9 97.0 41.6 96.6 41.7 96.3 41.6 95.8 41.8 95.7 41.8 95.9 4L 7 95.0 41.8 94.7 42.4 95.2 42.1 95.2 42.2 91.8 39.3 95.1 40. S 50.5 70.7 28.1 50.3 70.3 27.8 50.0 70.6 27.9 49.7 71.1 28.6 49.7 71.2 29.0 49.6 71.0 29.0 49.6 71.0 29.1 49.5 71.8 28.8 49.2 71.4 27.7 49.0 70.5 29.0 48.2 69.2 28.6 48.1 69.1 28.1 47.6 68.4 25.3 47.3 69.0 26.0 375.6 40.6 \ 94.9 ? 34.1 » 53.0 153.0 370.2 41.0 89.1 33.5 53.3 153.3 363.9 40.9 84.1 33.5 52.8 152.6 383.4 41.8 95.3 34.2 55.2 155.9 409.0 42.8 116.1 34.9 57.1 158.1 418.1 42.6 123.1 35.1 56.9 160.4 414.5 42.3 119.7 34.6 56.8 161.1 407.3 41.5 117.1 34.1 56.0 158.6 392.4 40.0 112.4 33.6 53.1 154.3 399.9 41.2 391.8 41.2 107.6 32.6 55.1 155.3 384.8 41.3 103.0 32.6 53.9 154.0 381.6 41.8 101.9 31.2 54.0 152.7 392.1 43.2 102.3 31.0 57.5 158.1 1 1 2 .2 33.2 56.3 157.0 Nondurable goods Food and kindred products_____________ 1,688.2 1,675.8 1, 665.1 1,686.9 1,738.8 1,780. 7 1,858. 5 1,931.1 1,910. 5 1,829.6 1,777.9 1,711.5 1,699.1 1,780.2 298.3 300.8 304.1 311.6 316.0 315.9 312.7 314.7 313. 4 314.4 307.7 305.2 317.0 1,792.7 M eat products____ ___________________ _______ 321.1 D airy produ cts............................................... ............... ¿98.8 297.4 298.4 301.2 303.0 306.1 312.3 320. 5 322.3 318.8 311.5 308.5 313.3 316.6 C anned and preserved food, except m eats_______________________________ _______ 188.3 181.1 187.4 2 0 2 .2 227.5 298.1 379.1 859.1 386.7 236.3 204.1 203.1 243.5 241.8 124,1 123.7 124.4 124.8 124.9 128.2 130.5 131.1 131.0 128.7 127.4 123.8 128.6 128.4 Grain m ill products___________________ —........... 303.6 302.3 303.2 307.0 308.9 308.0 307.3 308.0 308.1 308.8 302.1 301.1 B akery products______________________ _______ 305.7 307.5 Sugar____________ ____________________ _______ 28. 5 34.8 27.9 44.1 45.7 45.1 32.1 30.0 39.3 28.8 27.2 28.2 34.3 30.9 Confectionery and related products....... ............... 78.6 78.7 87.5 85.1 79.9 84.0 83.0 76.9 69.1 73.2 73.8 76.1 80.0 79.6 B everages_____ ________ ______________ _______ 214.9 2 1 0 .1 2 1 2 .2 217.9 219.7 223.5 22a 6 227.2 229.1 227.7 217.8 2 1 2 .2 216.5 218.2 M iscellaneous food and kindred prod u c ts................................................................................. 141.3 142.5 142.5 146.1 147.5 148.5 145.5 143.0 140.6 141.2 139.9 140.9 141.4 142.8 T obacco m anufactures__________________ 77.0 C igarettes................................. ....... ............................... C ig a r s ............................................................................ Textile mill products_________________ Cotton broad woven fabrics_________ Silk and synthetic broad woven fabrics. Weaving and finishing broad woolens.. Narrow fabrics and small wares_______ Knitting.................................... .............. Finishing textiles, except wool and knit. Floor covering.......................................... Yarn and thread___________________ Miscellaneous textile goods__________ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 856.8 79.4 37.2 21.9 85.2 36.8 88.3 37.1 2 2 .1 2 2 .0 856.9 238.7 69.6 50.2 26.5 854.4 238.7 69.8 50.2 26.5 199.2 70.4 34.2 100.9 64.5 855.2 240.2 70.1 48.6 26.6 198.1 70.6 34.6 100.7 65.7 2 0 1 .8 70.6 33.9 1 0 0 .6 65.0 94.1 37.2 23.0 96.2 37.0 22.9 1 1 1 .2 867.5 242.2 70.6 48.8 27.3 203.5 71.6 35.0 876.2 243.1 70.3 49.6 27.5 210.3 71.5 35.1 102.3 66.5 1 0 2 .2 66.3 37.0 117.6 37.9 1 0 2 .6 37.9 76.9 37.9 2 2 .6 2 2 .8 2 2 .6 881.3 243.2 70.1 50.8 27.2 214.4 71.6 34.7 102.9 66.4 883.7 244.2 70.5 51.5 27.4 215.3 71.2 34.2 103.0 66.4 885.8 245.0 70.6 52.2 27.8 217.2 71.1 33.1 103.8 65.5 2 2 .0 76.2 37.6 22.9 75.7 37.0 23.1 77.0 36.6 23.3 90.5 37.0 24.8 94.1 37.2 27.9 872.9 243.4 68.7 52.2 26.6 213.0 70.6 33.0 101.3 64.1 890.9 247.0 70.4 52.9 27.4 217.6 72.2 33.4 103.6 66.41 884.4 246.1 69.7 52.2 27.6 214.2 71.8 33.5 103.1 883.2 247.2 69.3 52.0 27.6 879.8 251.2 69.8 52.3 26.6 2 1 2 .1 2 1 1 .1 6 6 .2 6 6 .0 914.0 260.4 73.4 50.0 27.6 214.4 74.3 35.9 103.7 69.0 72.1 33.8 103.1 70.8 33.1 100.4 04.6 731 A.—EMPLOYMENT T able A-2. Employees in nonagricultural establishments, by industry 1—Continued [In thousands] Annual average 1962 1963 Industry Apr.« Mar.« Feb. Jan. Dec, Nov, Oct. Sept. Aug. July June May Apr. 1961 1960 Manufacturing—Continued Nondurable poods—Continued 1 Apparel and related products--------------- 1,244.2 1,264.5 1,250.6 1,219.2 1,235.6 1,252.7 1,258.5 1,264.2 1,266.7 1,207.8 1,230.5 1,216.3 1,232.4 118.0 118.5 118.5 119.1 118.5 119.3 120.2 119.8 115.2 119.4 115.6 115.9 Men’s and boys’ suits and coats--------331.7 330.7 327.5 331.8 334.9 335.2 336.4 336.1 324.7 331.2 324.7 320.5 M en’s and boys’ furnishings.................. Women’s, misses’, and juniors’ outer 363.2 356.0 337.9 339.5 343.4 342.3 349.7 356.7 335.5 342.2 355.5 340.5 wear___________________________ Women’s and children’s undergar 122.8 121.7 120.2 123.6 126.0 126.7 124.6 123.3 116.7 120.0 119.2 120.4 ments____________________— -----38.7 31.8 31.7 36.2 32.0 35.8 36.8 32.9 36.8 34.5 39.3 40.0 Hats, caps, and millinery_______ ____ 74.0 75.3 78.2 79.2 78.6 77.2 77.2 76.8 76.3 75.1 79.6 79.0 Girls’ and children’s outerwear_______ 67.3 66.2 68.7 71.6 67.8 72.2 73.3 72.3 62.9 68.2 66.3 65.0 F ur goods and miscellaneous apparel... — Miscellaneous fabricated textile prod 142.9 140.4 139.1 143.8 147.9 148.7 147.7 143.8 137.7 138.1 142.5 140.1 ucts............ .......................................... 599.9 599.3 597.0 600.3 605.7 606.4 608.8 610.7 610.4 602.2 607.3 598.7 598.4 Paper and allied products.____ _______ 223.6 223.4 225.2 226.2 226.8 227.9 229.0 231.4 227.7 228.5 224.9 224.8 Paper and pulp___________________ 67.5 67.5 68.1 66.4 67.7 66.7 68.3 68.3 68.5 68.5 68.3 68.3 Paperboard......... .................................... Converted paper and paperboard 128.5 128.6 130.2 130.4 129.3 130.6 129.7 130.5 129.7 128.6 128.9 130.2 products_______________________ 177.7 176.7 177.7 180.8 181.6 182.1 183.4 181.9 178.8 180.5 177.7 177.6 Paperboard containers and boxes------- 199.5 1,228.4 116.4 121.6 302.2 307.5 Printing, publishing, and allied Indus tries....................... .............................. Newspaper publishing and printing.... Periodical publishing and printing----Books________ ________________ ... Commercial printing_______________ Bookbinding and related industries___ Other publishing and printing indus tries.................................................... ....... Chemicals and allied products____ Industrial chemicals________________ Plastics and synthetics, except glass. Drugs................................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 135.8 136.9 589.5 224.5 66.8 693.3 224.4 69.3 124.3 174.0 124.4 175.1 920.1 323.7 69.1 75.4 294.7 48.4 945.7 348.5 69.4 75.7 293.8 48.4 945.0 346.6 68.9 76.0 293.8 48.7 941.3 345.1 68.3 76.4 292.2 49.3 934.0 345.5 66.1 75.8 288.9 49.5 930.7 343.1 66.4 76.1 289.2 48.3 933.4 343.7 66.4 75.4 292.0 48.0 929.0 341.0 68.5 74.4 291.1 47.3 930.8 342.5 68.7 74.5 291.4 47.2 926.3 339.1 71.0 73.0 289.8 47.1 917.2 332.6 71.0 71.1 289.2 47.0 108.3 108.0 107.5 108.8 109.9 111.0 110.0 108.2 107.6 107.9 106.7 106.5 106.3 106.3 870.1 860.1 285.4 163.3 112.3 101.0 62.6 49.1 86.4 852.7 284.4 163.2 112.0 99.9 62.0 45.4 85.8 850.1 284.6 163.4 111.6 99.9 61.6 43.5 85.5 849.9 284.9 162.9 111.7 100.2 61.7 42.3 86.2 852.0 285.2 163.3 111.3 101.2 62.0 41.6 87.4 853.6 284.9 163.2 110.6 101.8 62.8 42.9 87.4 855.9 285.1 164.3 110.5 101.8 63.6 42.7 87.9 858.0 287.8 163.4 111.4 101.2 64.7 40.7 88.8 855.0 288.9 162.9 110.7 99.2 64.5 40.5 88.3 851.2 287.7 158.4 110.0 99.4 64.2 43.3 88.2 851.9 284.6 159.7 108.7 98.0 63.0 52.5 85.4 854.9 286.0 159.7 108.8 98.1 62.2 63.9 86.2 830.2 284.8 152.3 106.6 96.5 62.4 44.7 82.9 829.6 286.8 153.2 107.4 92.2 63.5 44.8 81.8 187.6 185.6 154.8 30.8 186.3 154.6 31.7 185.4 153.0 32.4 186.9 153.5 33.4 189.1 154.3 34.8 190.7 154.9 35.8 192.8 156.4 36.2 199.9 163.5 36.4 200.9 165.0 35.9 200.9 165.3 35.6 199.3 164.6 34.7 198.3 165.0 33.3 203.0 170.0 33.0 211.7 177.6 34.1 392.5 391.8 104.2 160.9 126.7 391.5 104.4 161.0 126.1 394.7 105.3 163.9 125.5 395.8 105.7 164.4 125.7 398.2 105.3 164.4 128.5 399.9 105.3 164.7 129.9 397.7 105.7 164.3 127.7 392.1 104.5 161.4 126.2 384.5 103.5 157.1 123.9 391.4 104.5 161.5 125.4 385.0 103.0 158.8 123.2 380.4 102.5 157.2 120.7 365.1 101.0 149.1 114.9 374.0 106.8 153.3 113.8 343.9 352.1 31.8 235.2 85.1 354.6 32.1 237.6 84.9 351.4 32.9 236.1 82.4 359.3 33.1 238.4 87.8 361.0 33.1 235.8 92.1 358.6 32.9 233.4 92.2 360.8 32.8 236.! 91.1 368.6 32.8 243.5 92.3 358.4 31.6 239.2 87.6 363.5 32.7 241.7 89.1 355.4 32.2 236.6 86.6 359.5 32.0 238.8 88.7 361.0 33.0 239.3 88.7 365.8 34.1 242.6 89.1 3,887 3,867 764.4 666.9 267.7 86.0 109.9 46.6 889.2 212.5 190.1 19.9 299.4 813.5 685.0 34.7 91.9 599.9 247.5 150.0 172.5 29.9 3,862 761.4 664.4 268.8 86.2 110.7 46.7 888.2 211.9 190.3 19.9 301.0 811.3 682.7 34.7 92.0 599.8 247.4 150.2 172. ' 29.8 3,794 760.4 663.4 270. C 86.5 110.2 48.2 884.8 212.4 190.8 20.2 233.8 811.5 683. i 34.9 91.4 600.5 247.4 150.5 172.8 29.8 3,937 786.7 681.6 269. Í 86.1 109. ' 47.9 925. ' 210.5 189.] 20.5 306. ( 815.8 685.! 35.7 92.3 602.5 247.7 151.2 173.6 30. ( 3,934 781.8 683.1 266. S 87.1 107. ( 47.! 939. ( 209.2 188. ; 20.6 296. ( 816.! 687.5 35.7 91.8 603.' 247.7 151.7 174. ( 30. ( 3,959 792.5 692. ! 267. ( 87.7 105.7 48. ! 947. S 210. Í 189.5 20.5 296. ( 818.5 688.1 35.8 92.8 604.! 248.Î 151.5 174.5 30.3 3,959 784.4 685.! 265,2 87.9 105. C 49.7 942.1 210. C 188.5 21.2 300.7 823.6 693.2 36.2 92.3 612.1 251.' 153.4 176.8 30.5 3, 963 810.2 710.6 253.6 87.7 103. C 50.1 927.5 199.2 177.8 21.6 302.6 829.1 699.1 36.6 91.5 619.2 253.8 155.3 178.7 31.4 3,948 811.1 711.8 254.4 87.8 102.7 60.4 920.3 193.1 172.0 21.6 299.9 829.1 698.5 36.8 91.9 618.3 253.9 154.9 178.1 31.4 3,965 819.2 719.0 261.0 88.6 104.2 49.6 919.2 207.6 185.0 21.6 301.2 822.3 692.6 36.7 91.2 612.7 251.6 153.7 176.5 30.9 3,924 815.1 715.0 266.0 88.6 105.6 48.7 893.2 206.7 184.0 21.3 302.6 816.9 687.9 36.6 90.5 602.3 247.6 151.1 173.2 30.4 3,904 808.1 706.8 266.6 88.4 107.1 47.9 887.1 204.9 182.3 21.2 298.3 816.6 687.0 ¿6.6 91.2 600.9 247.6 150.7 172.6 30. U 3,923 819.5 717.4 270.0 91.5 109.5 48.2 875.2 197.3 175.6 4,017 886.9 780.5 282.6 94.6 120.4 47.2 873.8 191.0 171.6 23.1 308.0 838.7 706.0 38.3 92.4 613.0 254.3 153.4 175.0 30.3 ....................... Other transportation________________ Communication____________________ Telephone communication_________ Telegraph communication_________ ......... Radio and television broadcasting----Electric, gas, and sanitary services____ Combined utility systems.................... Water, steam, and sanitary systems... See footnotes at end of table. 119.7 36.2 76.1 69.0 912.2 320.6 69.5 75.4 291.2 48.0 Miscellaneous plastic products. Transportation and public utilities__. . . . . Railroad transportation______________ Class I railroads___________________ Local and interurban passenger transit... Local and suburban transportation— Taxicabs....................................... .......... Intercity and rural buslines.............. Motor freight transportation and storage. Air transportation__________________ 118.0 34.9 74.4 69.5 909.2 321.0 68.7 75.1 288.6 47.8 Other petroleum and coal products. Leather and leather products---Leather tanning and finishing. Footwear, except rubber_____ 361.3 913.9 322.2 08.5 75.6 290.8 48.5 930.4 Agricultural chem icals...____. . . ------ Rubber and miscellaneous plastic prod ucts___ _______________________ Tires and inner tubes______________ 348.3 22.2 302.1 826.2 694.8 37.1 92.4 610.7 252.2 153.1 175.3 30.1 732 MONTHLY LABOR REVIEW, JUNE 1963 T able A-2. Employees in nonagricultural establishments, by industry 1—Continued [In thousands] 1963 1962 A nnual average Industry A pr.3 M ar.3 F eb . Jan, D ec. N ov. O ct. Sept. A ug. J u ly June M ay Apr 1961 1960 Wholesale and retail trade________ _____ 11,733 I I , I I , 469 11,520 415 12,401 11,842 11,682 11, 627 11, 558 11. 540 11,582 11, 476 I I , 470 11,412 11, 368 Wholesale trade________________l.l.l. 3,089 3,080 3,078 3,086 3,129 3,113 3,113 3,105 3,107 3,091 3,074 3,034 3,028 3,008 3,009 Motor vehicles and automotive equip m ent____ ________ _____ __________ 226.8 225.9 224.9 226.7 226.0 226.4 226.9 226.8 226.3 224.2 221.1 220.4 215.6 213.6 Drugs, chemicals, and allied products.. 198.7 197.9 197.4 199.3 199.2 198.4 196.8 196.9 195.4 194.4 193.2 192.5 188.3 183.8 Dry goods and apparel................. ............ 134.5 134.0 134.8 135.2 135.1 135.7 135.1 135.9 135.8 134.5 132.5 132.1 130.7 130.8 Groceries and related products_______ 490.2 487.8 491.6 502.9 502.7 497.9 492.8 491.8 498.9 499 490.1 491.2 491.5 494.0 Electrical goods____________________ 217.5 217.6 217.2 216.5 215.8 215.2 214.1 215.3 215.2 213.5 210.2 210.1 204.8 208.1 Hardware, plumbing and heating goods____________________________ 143.2 142.8 142.7 143.6 144.1 144.8 145.0 145.4 145.3 144.9 143.1 141.7 142.6 145.1 Machinery, equipment, and supplies! 520.2 519.0 514.8 514.8 512.2 511.9 514.5 513.5 512.1 508.5 502.6 500.0 483.6 479.1 Retail trade__________________________ 8,644 8,389 8 ,337 8,434 ,272 ,729 8,569 8,522 8,451 8 ,449 8,508 8,442 8 , 442 1,361 8,403 General merchandise stores___________ 1, 480.0 1,461.2 1,534. 2 , 045. 5 , 700.9 1, 590. 5 1, 556.8 1,512.8 1, 501. 5 1,526. 8 1, 523. 9 1, 534. , 554. 8 1.563.1 Department stores_______________ 873.5 861.9 915.0 , 242.8 ,014.2 936.2 911.0 885.7 878.1 897.4 901.9 910.6 914.4 Limited price variety stores_______ 309.1 302.2 313.0 417.6 347.8 329.7 326.9 311.5 308.4 312.3 317.9 324 330.0 335.4 Food stores_______________________ 1, 394. 2 1, 397. 6 1.386.4 , 417. 5 ,396.7 1,383. 6 1,368.7 1,365.0 1,376.6 ,374.9 1,370.1 1,373. 8 , 358.3 1, 356.1 Grocery, meat, and vegetable stores.. 1, 225.2 1,223. 2 1.218.4 , 239.1 , 226. 2 1,216.5 1.204.0 1, 202.2 1,211.3 , 208.8 1,201.4 1, 198. 7 , 186. 9 1,181.6 Apparel and accessories stores................. 645. 7 634.1 661.2 801.2 695.7 674.6 663. 3 630.5 630.2 663.0 668.5 707.2 645.7 637.2 M en’s and boys’ apparel stores_____ 107.8 109.9 117.3 146.3 117.1 108.9 106.6 107.9 113.2 108.9 I I I . 107.73 104.3 Women’s ready-to-wear stores______ 252.1 244.3 252.7 304.1 268.4 259.9 252.8 241.1 242.0 251.7 256.9 264.3 246.2 243.1 Family clothing stores_____________ 9 7 .4 9 6 .9 9 5 .7 1 0 2 .6 95.8 100.3 99.6 102.2 130.9 1 0 6 .7 101.6 100.8 96.8 94.7 Shoe stores_____________________ 114.6 113.7 132.2 119.4 119.7 121.7 114.7 114.7 120. 5 123.5 140.3 116.0 119.0 Furniture and appliance stores........1 ... 416.3 413.3 416 432.4 419.6 414.5 413.0 409.1 407.8 410.0 407.6 409.8 405.4 409.2 Eating and drinking places__________ 1,621. 2 1,610.9 1,607. 9 , 651.0 , 658. 7 1,670. 5 1. 686.0 1, 700.9 1, 699.2 , 706.3 1,663. 7 1,634.2 1,626.5 Other retail trade__________________ 2,831.9 2 , 820.3 2,828.1 , 924. 4 , 857. 6 2,834.8 2,834.3 2,832. 7 2,833. 5 , 826. 7 2, 2,782. 3 , 776.9 2.811.1 Motor vehicle dealers____________ 706.4 706.0 701.9 696.4 692.3 687.3 683.4 683.9 681.8 675.3 669.5 667. 3 656.5 674.6 Other vehicle and accessory dealers. 133.3 132.0 134 142.1 138.3 133.9 134.7 135.6 136.3 136.4 132.9 130.7 138.3 142.8 Drug stores.._____ ______________ 382.2 379.6 383.2 402.7 386.9 384.7 382.2 382.5 378.0 379.5 377.1 375.1 372.9 369.5 111.0 III. 0 ,617. Finance, insurance, and real estate____ B an k in g________________________________ Credit agencies other th an banks'.” ! ! ! ! ! ! Savings and loan associations_________ Personal credit in stitu tio n s....................... Security dealers and exchanges.......... ......... Insurance carriers_____________________ Life insurance____________ ! ! ! ! ! ! ! ! ! ! A ccid en t and health in su r a n c e !!!!!!! Fire, marine, and casualty in s u r a n c e .. Insurance agents, brokers, and services. . Real e s t a te ................................ ......................... Operative builders_________ ! ____! ! ! ! ! ! Other finance, insurance, and real esta te. Services and miscellaneous_____________ H otels and lodging places____ ! ! ! ! ! ! ! ! ! ! ! H otels, tourist courts, and m o tels_____ !! Personal services: Laundries, cleaning and dyeing plants. M iscellaneous business services: A dvertising__________________________ M otion pictures_____________! ! ! ! ! ......... " M otion picture film ing and’ d istrib u t in g ................................................................. M otion picture theaters and ser v ic e s.. M ed ical services: H osp itals___________________ _______ Government___ _________ _____ Federal G o v ern m en t3_________ ! ! ! ! ! E xecu tive____ ________________Ü Ü D epartm ent of D efen se................. P ost Office D ep artm en t________ Other agencies_________________ L egislative_______________________ Jud icial.................................................!! State and local governm ent _______ State govern m ent________________ Local govern m ent________________ E d u cation ............................................... Other State and local govern m ent. * 2,838 2,822 729.2 270.9 2,803 722.7 270.3 543.6 28.7 75.0 2,807 2,808 723.4 720.9 270.1 268.6 87.0 87.4 142. 3 141.2 120.4 121.1 870.6 869.9 473.5 473.1 52.8 52.7 301.8 301.6 202.3 202.3 545.0 549.6 30.8 29.6 75.1 75.1 7,782 605. 4 564.3 7,761 599.6 558.5 7,805 603.1 560.5 490.3 487.3 492.8 III. 111.1 88.8 7,938 2,810 727.0 270.8 88.5 142.2 142.0 120.9 875.6 477.7 52.9 302.2 202.9 547.2 30.3 74.8 873.2 476.1 52.7 301.8 202.9 541.2 28.4 74.5 7,824 607.4 565.7 161.5 33.5 128.0 , 1 221.2 9,558 9,546 2,337 2,335 2,305.0 952.5 582.2 770.3 23.8 5.7 7,221 7,211 1, 813. 8 5, 397.1 3, 751. 7 3,459.2 120.2 4 .88.6 141.4 119.3 869.9 474.4 52.5 300.3 202.1 158.2 160.5 112.4 164.3 33.9 124.3 35.5 124.9 36.5 127.8 111.8 86.1 86.6 868.5 472.3 52.7 300. 142.2 125.5 869.4 472.5 52.8 301.7 201.0 201.2 86.6 140.5 2, 841 729.0 271.2 2,808 715. 268.2 85.1 143.0 131.9 864.0 469.6 52.8 298.9 552.6 30.3 75.2 2,780 705.1 264.9 83.6 141.5 131.8 859.0 468.7 52.0 296.4 198.8 545.2 31.0 75.4 2, 770 704.2 265.0 83.9 141.2 133.0 860 469.9 52.2 296.4 198.9 533.3 29.9 75.0 2,748 695.1 262.5 78.6 145.2 126.8 856.7 468. 4 51.6 295.1 199.8 531.4 32.5 75.9 2, 684 674.7 256.2 72.4 146.0 114.2 839.0 459.0 50.9 287.3 196.2 527.3 36.1 76.7 551.9 32.2 75.7 553.0 31.8 75.8 143.9 130.8 875.0 474.0 53.3 304.2 204.0 654.9 32.4 76.0 7,830 605.9 562.1 7, 870 616.5 570.1 7, 856 654.1 597.9 7,867 745.6 640.3 7,884 742.1 638.9 7,881 672. 6 612.7 7, 769 604 554.4 7, 690 584.2 539.0 7, 516 587.7 531.3 7, 361 567.7 511.1 122.8 201.0 498.2 503.4 503.9 504.6 614.1 518.8 513.3 507.1 510.5 621.0 112.4 167.7 111.6 174.5 111.4 180.7 112.1 111.6 183.2 182.0 110.4 179.8 112.1 178.1 112.3 178.6 110.4 184.4 109.9 189.3 36.3 131.4 36.2 138.3 37.2 143.5 36.9 146.3 36.1 145.9 35.2 144.6 35.0 143.1 37.9 140.7 43.5 140.9 43.5 145.8 1,215.9 1,204. 6 1, 201.6 1,202.4 1,196.9 1,192.8 1,192.3 1,194. 5 1,186. 5 1,174.2 1,173.3 1,141.7 1,105.0 9,510 9, 438 9,607 9,470 9, 406 9, 241 8,860 8.870 9,171 9,172 9,143 8 , 828 8 , 520 332 327 492 2,348 365 336 333 354 368 306 313 279 270 302.3 297.5 462.4 2,318.8 303.8 306.4 335. 5 338.5 324.2 284.0 276.9 250.9 242.6 957.0 959.1 961.9 965.1 964.0 962.6 972.9 973. 4 970.2 961.3 958.6 943.7 940.6 580.6 582.5 742.7 587.8 583.9 587.1 589.2 589.9 587.0 582.2 580.2 596 7 586.7 764.7 755.9 757. 8 765 9 755. 9 756.7 773.4 775.2 767.0 740. 5 738.1 710.5 715.3 23.8 23.6 23.7 23.9 24. 1 23.9 23.9 24.0 23.4 23.9 23.3 23.2 22.6 5.6 5.6 5.6 5.6 5.6 5.5 5.5 5.5 5.5 5.5 5.4 5.1 4.9 111 178 115 7,122 905 073 495 502 817 859 837 548 2.50 800.0 786.8 784.2 1, 786. 2 779.9 725. 2 670.7 677.6 729.9 731.8 721.5 1,663.6 592.7 377.6 324.2 330.3 5,336. 0 293.0 180.1 824.3 824.4 087.5 127.3 115.6 4. 884. 5 657.0 723.1 669.2 674.5 3,677.0 629.013, 410.9 933.4 949.2 318.7 438.7 44«. 2 3,175.4 983.3 454.5, 441.8 440.0 3,445.2 443. 9 3, 494.4 3,556.6 3, 552.8 498. 7(3, 420.4 388.9 3,373.9 266.4 1 Beginning with the December 1961 issue, figures differ from those pre viously published for three reasons. The industry structure has been con verted to the 1957 Standard Industrial Classification; the series have been adjusted to March 1959 benchmark levels Indicated by data from government social insurance programs; and, beginning with January 1959, the estimates are prepared from a sample stratified by establishment size and, in some cases, region. For comparable back data, see Employment and Earnings Statistics (or the United States, 1909-60, (BLS Bulletin 1312). Statistics from April 1959 forward are subject to further revision when new benchmarks become avail able. In addition, data include Alaska and Hawaii beginning in January 1959. This inclusion increased the nonagricultural total by 212,000 (0.4 percent) for the March 1959 benchmark month, with increases for industry divisions ranging from 0 . 1 percent in mining to 0 . 8 percent in government. These series are based upon establishment reports which cover all full- and part-time employees in nonagricultural establishments who worked during, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2, 813 719.9 268.3 2,839 725.1 271.5 87.4 143.5 132.4 871.7 472.3 53.2 302.8 203.0 559.4 32.7 75.7 2, 807 720.0 267.3 or received pay for, any part of the pay period ending nearest the 15tb of the month. Therefore, persons who worked in more than 1 establishment dur ing the reporting period are counted more than once. Proprietors, selfemployed persons, unpaid family workers, and domestic servants are excluded. 3 Preliminary. 8 Data relate to civilian employees who worked on, or received pay for. the last day of the month. 8 State and local government data exclude, as nominal employees, elected officials of small local units and paid volunteer firemen. Source: U.S. Department of Labor, Bureau of Labor Statistics for all series except those for the Federal Government, which is prepared by the U.S. Civil Service Commission, and that for Class I railroads, which is pre pared by the U.S. Interstate Commerce Commission. A.—EMPLOYMENT 733 T able A-3. Production workers in nonagricultural establishments, by industry 1 [In thousands] 1963 1962 Annual average Industry Apr.2 Mar.2 Feb. Mining________ ______ 475 65.5 . 23.0 Metal mining . . . Iron ores________________________ Copper ores_____________________ 20.7 22.9 479 64.2 19.2 2 2 .g 123.0 115.6 123.6 116.2 102.4 104. 6 207.5 102.5 105.2 83.2 79.8 1 91S 600.0 346. 8 176. 9 169.9 968.7 1,841 573.9 317. 6 154.9 162. 7 949.0 2 1 Coal mining______________________ Bituminous- . _ .......... ......... . 119.2 112 .0 Crude petroleum and natural gas......... . Crude petroleum and natural gas fields. Oil and gas field services___________ 207.0 Quarrying and nonmetallic mining_____ _____ Contract construction___ ______________ General building contractors__________ Heavy construction_________________ Highway and street construction_____ Other heavy construction__________ Special trade contractors_____________ ........... Jan. 476 6 6 .0 Dec. Nov. Oct. Sept. July June May Apr. 1961 1960 22.7 517 68.5 23. S 23.6 508 72.7 24.4 23.7 520 73.9 25. 24.0 517 73 1 25.0 23. 8 508 71 7 23.7 23.9 23 7 125.0 117.6 124.7 117.3 113.7 105.6 125.0 117.4 127.1 119.1 128.6 12 0 .8 136 7 127 5 161 148 214.0 215.8 103. C 103.2 111. C 1 1 2 . 6 219.8 105.2 1 1 4 .e 2 2 1.2 221.5 2 2 0 . 1 107.2 107. C 107.2 114. C 114.5 112. Í 216.4 105. ( 111.4 214.5 104. ( 110. 5 223.1 108. i 114 6 229.1 113.8 99.6 101.3 102.8 100.2 99.9 92.8 95.4 491 63.6 501 64.4 507 64.7 512 65.4 2 0 .0 2 0 .8 2 2 .8 2 1.6 2 2 .6 2 2 .1 123.4 115.8 125.0 117.3 126.6 118.9 209.0 102.5 106.5 215.0 102.5 112. 5 82.6 89.1 23.0 Aug. 97.2 100.8 527 71 22 8 567 76 9 28 6 22 6 2 9 Ilo 3 99.6 1,947 2,128 2,397 2,529 2,570 2,621 2,573 2,431 2,344 2,186 2 344 2 458 611.4 666.1 742.0 769.2 784.2 8Ó9.4 796.5 753.4 724.6 690.7 740.4 788.3 342.1 402.6 510.0 577. 8 596.1 612.2 602.3 552. £ 523.6 436.5 492. 8 509 0 170.4 213. 6 295.2 346.6 361.8 372.4 361.2 327.8 303. 7 237. 5 271.2 270 6 171.7 189.0 214.8 231.2 234.3 239.8 241.1 225.1 219.9 199.0 221 6 238 4 993.0 1,059.1 1,145.2 1,181.6 1,189.6 1,199.5 1,173.9 1,125.0 1,095.5 1,058.7 1, HO. 8 1,160.7 Manufacturing_____________ ____ 12,319 12,237 12,173 12,187 12,358 12,518 12,661 12,751 12,544 12,403 12,516 12,372 12,338 12,044 12,562 Durable goods___________________ 6, 967 6, 881 6, 848 6,862 6,929 6,994 7,027 7,034 6, 862 6, 925 7,025 6, 975 6, 931 6,613 7,021 Nondurable goods________________ 5,352 5,356 5,325 5,325 5,429 5,524 5,634 5, 717 5,682 5, 478 5,491 5,397 5,407 5,431 5,541 D u ra b le goods Ordnance and accessories.............. .......... Ammunition, except for small arms__ Sighting and fire control equipment__ Other ordnance and accessories______ Lumber and wood products, except furniture____ ___________________ Logging camps and logging contractors. Sawmills and planing mills.................. Millwork, plywood, and related products_________ ________________ Wooden containers________________ Miscellaneous wood products_______ 97.4 530.5 Furniture and fixtures______________ Household furniture_______________ Office furniture___________________ Partitions, office and store fixtures___ Other furniture and fixtures_________ 313.0 Stone, clay, and glass products________ Flat glass_______ ______________ Glass and glassware, pressed or blown.. Cement, hydraulic________________ Structural clay products___________ Pottery and related products................ Concrete, gypsum, and plaster products.. 0 ther stone and mineral products____ 460.1 Primary metal industries____________ Blast furnace and basic steel products.. Iron and steel foundries___ ________ Nonferrous smelting and refining____ Nonferrous rolling, drawing, and extrading_______________________ Nonferrous foundries_____ ____ ___ Miscellaneous primary metal Industries__________________________ 946.0 Fabricated metal products___________ Metal cans______________________ Cutlery, handtools, and general hardware....... ................. ............. ............ Heating equipment and plumbing fixtures_______________________ Fabricated structural metal products Screw machine products, bolts, etc___ Metal stampings_____ ____ 1______ Coating, engraving, and allied services. Miscellaneous fabricated wire products. Miscellaneous fabricated metal products..................................................... 852.8 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100.2 40.8 36.7 98.8 40.6 21.4 36.8 100.9 41.5 101.3 41.8 101.5 42.7 37.5 101.7 41.7 22.4 37.6 37.2 37.3 513.7 70.0 237.9 513.5 75.4 234.4 518.0 77.3 236.7 529.9 82.7 238.8 546.9 89.2 245.7 558.4 92.3 250.1 119. 5 34.1 52.2 118 8 33. 7 51.2 119.3 33.8 50.9 121.9 34.9 51- 6 124.7 35.3 62.0 313.2 232.0 22. 7 25.6 32. 9 312.7 230. 8 315.2 230.8 24.1 26.7 33.6 318.9 233.7 24. 6 26.3 34.3 436.4 23.2 427.5 432.2 23. 5 23.9 85. 5 83.9 28.5 26.9 54. 5 55.6 36.6 36. 5 103.0 105.2 85. 6 86.2 97.8 40.3 20. 8 86. 7 27.9 55.7 36.6 108.1 86.1 22. 8 26.0 33.1 22.2 37.2 37.0 98.6 43.0 21.9 33.7 33.2 567.2 96.3 253.1 576.0 99.5 255.6 668.4 98.3 254.3 127.0 36.3 62.7 128.6 35.9 53.3 130.4 36.9 53.6 322.5 236.1 24.7 27.0 34.7 323.7 237.3 28.9 34.9 323.0 235.9 22.4 29.1 35.6 446.5 24.9 84.8 30.0 58.4 36.8 111.7 87.5 465.1 25.6 85.8 32.5 60.4 37.8 121.3 89.0 474.2 25.3 87.0 32.9 61.0 38.6 126.9 89.7 101.0 41.5 22.0 22.2 22.6 34.9 97.5 40.6 22.3 34.6 94.3 39.6 22. 5 32.2 22 7 571.4 96.4 256.9 646.0 84.8 248.3 527.4 77.0 242.6 534.8 85.2 243.4 570.3 87.1 268.5 126.7 36.9 52.2 127.3 37.5 53.3 123.9 36.5 52.6 120.3 35.5 62.0 119.4 36.8 49.9 124 1 39 1 51 4 322.7 233.8 24.4 28.8 35.7 313.3 226.9 316.9 229.4 23.9 27.8 35.8 314.1 229.3 23.3 27.0 34.5 312.7 229.9 303.9 318.9 221. 5 232 3 26.5 33.5 26.6 34.0 29.2 34. 5 478.9 25.0 87.8 33.5 62.3 38.0 129.4 90.5 480.9 24.8 87.5 33.9 62.8 37.5 131.4 90.8 476.4 24.4 87.6 33.7 62.0 37.1 129.6 90.3 476.1 24.5 33.4 61.4 37.2 129.0 90.1 466.6 23.8 86.5 32.1 60.8 36.9 125.4 89.4 454.5 24.2 84.9 31.1 59.3 37.3 117.2 88.7 455.1 23.7 84.5 32.2 60.4 36.9 118.1 87.4 483.2 27.0 86.9 34 9 65 9 40 3 123. 5 91.8 22.2 21.8 23.2 28.3 34.9 96.7 41.7 21.8 88.6 97.5 40. 5 22.1 22.8 21.8 89.4 37 0 29.7 22.8 930.3 472.8 166. 5 51. 5 915. 4 458. 8 165.9 51.3 900.5 443.9 165.0 51.7 900.3 442.3 165.0 52.7 894.2 437.4 164.5 53.0 897.5 440.8 165.0 53.5 910.9 451.9 166.1 53.8 906.3 450.3 163.4 53.0 903.4 451.9 163.1 51.8 935.5 475.4 166.6 62.9 964.5 503.3 166.5 53.0 991.3 530.0 167.1 53.0 914.5 482.0 156.0 51.7 992.0 529.3 172.4 54.9 135.1 56.9 134.9 56. 8 134.9 56.9 135.2 67.1 135.4 56.0 135.8 55.9 136.2 55.9 135.3 56.1 135.4 53.4 136.9 54.7 136.5 56.4 136. 5 55.6 129.0 50.4 133.6 53.7 47.5 47. 7 48.1 48.0 47.9 46.5 47.0 48.2 47.8 49.0 48.8 49.1 45,4 48 2 844.7 49.1 844.2 48. 6 848.2 47.8 859.2 47.3 864.7 47.5 870.7 50.4 872.1 54.8 850.9 54.9 851.6 55.2 867.6 55.0 860.7 52.9 851.2 51.7 819.6 51.7 869.0 54.1 110.0 110.7 111.3 111.8 111.8 110.6 108.8 105.1 104.4 109.4 109.4 108.6 101.4 107.3 57.7 219 5 69.4 154.9 54.1 44. 7 57.5 218 4 69.6 155.2 54.6 44.3 56.3 221.3 69.3 158.2 54.9 44.6 57.2 226.3 69.4 160.1 56.2 45.4 58.1 229.0 69.2 159.4 58.7 46.0 58.9 234.7 68.9 159.3 68.4 46.3 58.6 238. 4 68.5 156.3 57.9 45.3 58.6 236.7 68.2 56.9 236.2 143.4 56.3 44.2 56.8 237.2 67.4 147.5 56.0 43.9 68.8 152.3 67.6 45.3 56.3 231. 3 69.1 154.8 56.4 45.1 56.0 226.8 69.3 152.6 56.4 44.6 55.2 230.3 62.6 143.7 53.0 42.2 58.7 238 1 67.2 160.7 53.8 45.5 85.3 85.3 84.5 85.5 85.0 83.2 83.5 83.6 83.2 86.1 85.4 85.2 79.6 83.6 MONTHLY LABOR REVIEW, JUNE 1963 734 T able A-3. Production workers in nonagricultural establishments, by industry 1—Continued [In thousands] Annual average 1962 1963 Industry Apr.» Mar.» Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 1961 1960 Manufacturing—Continued Durable poods—Continued IViftopilnpry ____ _____ _______ 1,038.1 1,029.8 1,023.5 1,020.9 1,017.5 1,016.7 1,018.1 1,020.7 1,015.3 1,019.6 1,034.5 1,026.5 1,024.9 58.2 58.6 58.6 56.8 57.8 59.5 57.7 57.5 58.0 57.5 58.9 58.8 Engines and turbines______ . . . . . . . . . . 87.2 86.7 87.3 84.9 85.1 83.8 84.5 95.5 87.1 83.9 91.1 E&rm machinery and equipment 97.3 Construction and related machinery 139.5 138.5 138.6 138.7 138.3 137.6 140.8 141.3 140.3 141.7 139.5 138.2 Metalworking machinery and equip195.1 194.3 193.2 193.5 192.5 191.2 189.8 187.4 191.1 194.2 195.2 195.6 ment _ _________ -_. . . . . . . . . . . . 116.6 116.1 116.8 118.1 117.9 119.0 118.7 119.0 119.2 120.1 118.6 118.1 Ppeciftl industry machinery ______ 149.1 148.8 150.1 148.2 151.0 151.7 151.6 151.6 150.9 152.3 150.0 149.9 General industrial machinery ____ Office, computing and accounting ma95.2 94.9 95.7 94.4 94.3 93.1 93.4 92.8 93.3 90.4 90.5 91.9 chines _ _________- ______ 69.1 68.3 65.3 68.7 70.1 66.0 64.2 64.8 65.3 65.3 64.5 66.3 Service Industry m achines.. 116.6 115.7 115.5 116.6 117.5 117.7 116.8 114.8 114.6 116.3 113.1 113.2 TWijseellanenns machinery___________ 964.5 1,030.4 51.2 56.1 78.6 79.0 128.2 144.5 180.1 116.2 143.0 194.0 122.3 154.0 94.5 63.8 109.0 95.2 69.7 114.2 1,024.4 1,027.3 1,031.5 1,042.3 1,052.9 1,060.1 1,062.0 1,059.2 1,041.1 1,031.4 1,038.9 1,024.7 1,018.8 963.3 986.9 Electrical equipment, and supplies Tricctrie distribution cquinment .. 106.1 106.5 107.3 108.6 109.1 109.1 109.0 108.6 107.0 107.6 104.8 105.6 105.3 108.3 Electrical industrial apparatus_______ 118.6 119.1 119.7 120.3 120.8 120.3 120.7 119.5 120.6 122.0 119.7 119.6 114.8 121.5 118.8 117.9 118.2 118.8 118.8 119.5 118.8 115.4 114.3 117.7 118.6 118.2 114.8 120.7 Household appliances---------------------99.9 103.6 108.0 107.9 107.8 108.5 108.9 109.5 109.2 106.1 104.2 105.8 105.6 104.9 Electric lighting and wiring equipment. 86.2 82.6 95.4 90.8 82.2 97.6 99.7 91.5 89.0 95.5 100.2 102.7 102.3 ■Ror]in and TV receiving sets_________ 88.3 Pnmrnnnlcation equipment_________ 222.8 225.1 227.4 228.1 227.7 226.7 225.3 222.4 217.8 219.5 219.0 218.5 200.4 201.4 Electronic components and accessories_ 176.2 176.8 179.8 182.0 183.4 183.8 184.5 183.4 183.1 183.3 179.6 178.2 165.5 164.4 Miscellaneous electrical equipment 86.6 87.6 87.7 79.9 86.8 84.9 89.4 86.0 90.4 90.6 91.2 89.2 91.1 88.5 and supplies________ __. . . . . ____ — 1,170.4 1,158.9 1,159.1 1,168.3 1,167.8 1,159.6 1,149.8 1,133.3 1,007.7 1,120.6 1,136.6 1,132.8 1,117.7 1,035.0 1,132.7 Transportation equipment Motor vehicles and equipm ent.._____ 579.5 583.3 592.8 595.8 589.3 681.0 566.3 441.2 561.3 580.0 573.1 557.0 491.7 566.5 391.9 394.0 398.7 398.7 396.4 391.4 389.3 388.0 384.2 378.4 380.4 381.9 378.7 392.5 Rhip and host building and renairing__ 130.1 126.0 124.9 121.5 120.7 122.2 121.0 120.7 118.6 119.6 121. C 122.1 117.8 116.0 33.0 24.8 32.3 33.8 32.5 33.9 32.0 33.3 30.8 31.9 31.3 33.0 30.7 34.0 Railroad equipment................................ 25.3 24.7 24.4 21.9 25.1 24.0 24.0 22.4 23.4 23.3 20.6 Other transportation equipment_____ 23.4 22.8 21.1 Instrum ent and related products.._____ 231.2 Engineering and scientific instruments. Mechanical measuring and control devices _ __________________ Optical and ophthalmic goods............... Surgical, medical, and dental equip- ........... ment _________ __________ -____ _ Photographic equipment and supplies.. Watches and clocks________________ 229.6 38.4 228.9 38.6 229.2 39.3 229.9 39.5 230.5 39.4 230.5 39.3 229.9 39.1 229.4 38.6 225.8 37.7 228.5 38.4 226.8 38.2 226.3 38.2 221.6 40.4 232.0 42.8 63.5 30.4 63.4 30.3 63.2 30.0 62.8 30.1 62.7 30.2 62.4 30.5 62.3 30.2 62.2 30.4 61.2 30.3 61.3 31.1 61.9 30.8 62.1 31.0 59.8 29.1 63.3 30.7 35.3 39.4 22.6 35.0 39.3 22.3 34.6 39.6 22.5 34.3 40.4 22.8 34.5 40.5 23.4 34.4 40.5 23.4 34.5 40.4 23.4 34.3 40.7 23.2 33.9 40.5 22.2 33.8 40.4 23.5 33.2 39.5 23.2 33.0 39.3 22.7 33.0 39.4 20.1 33.1 41.1 21.1 303.4 299.4 31.2 77.7 25.7 43.8 121.0 293.1 31.7 71.9 24.9 44.0 120.6 287.1 31.7 66.7 24.8 43.7 120.2 305.2 32.5 77.6 25.7 45.8 123.6 337.8 330.6 33. C 32.3 99.6 102.2 25.8 26.2 47.4 46.7 129. C 126.2 316.1 30.8 95.3 24.3 43.8 121. £ 322.4 314.7 32. C 31.9 94.4 90.1 24.3 24. £ 45.6 46.5 124.6 122.8 308.2 31.9 86.0 24.2 44.5 121.6 306.2 32.7 85.3 23.0 44.5 120.7 316.0 33.9 86.4 23.0 47.3 125.4 Miscellaneous manufacturing industries.. Jewelry, silverware, and plated ware__ Toys, arnnspmentf and snorting goods.. Pens, pencils, office and art materials__ Costume jewelry, buttons, and notions. Other manufacturing industries______ 332.4 341.6 33.4 33.3 99. C 105.8 26.6 26.3 47.8 47.5 125. £ 128.4 Nondurable goods Food and kindred products___________ 1,096.0 1,087.8 1,076.9 1,098.9 1,146.6 1,187.6 1,265.6 1,329.7 1,303.5 1,223.8 1,175.8 1,121.0 1,110.9 1,190.8 1,211.3 IVTeat products 237.8 240.1 243.3 250.9 254.7 255.0 251. C 253.1 251.5 253. C 246.4 243.5 254.3 257.9 Dairy products 146.9 145.7 146.3 148.3 149.9 152.1 156.9 162.4 164.8 163.2 158.6 155.8 163.0 169.7 Canned and preserved food, except 151.5 144.3 150.6 165.2 190.4 260.6 338.1 318.2 246.4 197.8 166.5 166.0 206.2 206.1 meats 85.2 89.6 88.6 92.1 89.8 90.2 91.8 92.0 90.1 86. £ 86.8 86.8 86.0 86.4 Grain mill products_____________. . . . Bakery products . . . . 175.1 173.3 173.6 176.7 178.7 179.2 177. £ 177.2 177.3 176.4 172.6 171.8 174.7 176.6 22.4 28.4 21.5 24.1 23.4 22.8 30.3 26.1 39.8 38.9 Rugar __ 38.4 28.9 22.5 21.9 57.2 57.8 60.1 62.8 67.3 61.4 53.7 63.5 71.0 69.4 63.9 67.7 62.8 Confectionery and related products.._ 62.3 BAverages . 111.6 100.6 110.0 114.2 115.7 118.9 122.4 119.3 121.4 120. £ 114.7 110.5 115.6 118.3 Miscellaneous food and kindred prod95.6 96.2 94.4 94.3 99.0 98.3 95.7 93.3 net» ... 95.5 98.4 100.5 101.3 95.6 94.3 79.4 64.5 65.9 65.2 64.7 83.3 90.4 84.1 98.7 105.1 76.5 81.9 73.2 65.2 67.7 Tobacco manufactures_______________ 31.6 31. C 30.8 32.2 31.5 31.7 31.8 31.7 30. £ 30.8 31.0 31.1 Cigarettes__ _____________ ______ 30.7 31.0 21.5 21.7 23.1 21.3 26.0 21.1 20. £ 20.3 21.3 20.9 Cigars ..... 20.5 21.2 20.5 20.3 Textile mill prndqct.s ... .. _. (Cotton broad woven fabrics. Silk and synthetic broad woven fabrics. Weaving and finishing broad woolens Narrow'fabrics and smallwares---------Knitting Finishing textiles, except wool and knit. Plnnr covering __ _. . . Yarn and thread Miscellaneous textile goods.................... See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 768.7 768.6 221.1 62.7 44.4 23.2 181.6 60.2 27.9 92.8 54.7 766.1 221.4 62.9 44.4 23.2 178.8 60.1 28.2 93.0 54.1 767.0 223.0 63.4 42.8 23.4 177.2 60.3 28.6 93.1 65.2 1 778.9 224.8 63.8 43.0 24.0 182.4 61.2 29.2 94.6 55.9 787.7 225.4 63.6 43.8 24.2 189.4 61.2 29.2 94.8 56.1 792.5 225.5 63.3 44. £ 23.9 193.2 61.3 28.8 95.4 56.2 795.7 226.5 63.9 45.7 24.1 194.2 61.1 28.4 95.5 56.3 798.2 227.8 63.9 46.3 23.9 196.3 61.0 27.4 96.2 55.4 786.0 803.4 226. C 229.7 62.1 63.7 47.2 46.3 24.1 23.3 192.5 196.7 62.1 60.5 27.8 27.4 93. £ 96.2 55.9 54.0 797.4 228. £ 63.1 46.5 24.2 193.6 61.6 27. £ 95.9 55.8 796.2 229.9 62.8 46.3 24.3 191.6 62.0 28.2 95.7 55.4 793.2 234.7 63.1 46.2 23.2 190.7 60.9 27.8 93.0 53.7 820.7 244.1 66.9 49.5 24.1 194.3 64.1 30.4 95.9 57.5 A.—EMPLOYMENT 735 T able A-3. Production workers in nonagricultural establishments, by industry 1—Continued [In thousands] 1963 1962 Annual average Industry Apr.* Mar.« Feb. Jan. Dec, Nov. Oct, Sept. Aug. July June May Apr. 1961 1960 Manufacturing—Continued Nondurable goods— Continued Apparel and related products....................1,105.2 1,125.0 1,112.3 1,081.3 1,096.8 1,113.1 1,118.5 1,125.3 1,128.7 1,071.2 1,092.6 1,079.9 1,096.1 1,066.8 1,094.2 M en’s and boys’ suits and coats......................... 105.4 105.9 106.1 106.3 105.8 106.4 107.6 107.5 103.1 106.7 103.6 103.7 104.3 108.9 M en’s and boys’ furnishings_______________ 301.2 300.0 297.2 300.5 303.7 304.4 305.7 305.8 294.2 300.6 294.7 2S0.4 273.7 279.6 Women’s, misses’ and juniors’ outer wear___________________________ ______ 326.9 320.2 301.9 304.4 307.5 305.7 313.5 320.9 300.2 306.7 305.0 319.9 313.7 325.8 Women’s and children’s undergarments....... ........ 108.4 107.5 106.0 109.3 111.5 112.0 110.2 109.2 103.0 106.2 105.2 106.5 104.8 106.2 Hats, caps, and millinery__________________ 34.9 35.7 28.8 31.8 32.1 32.4 30.2 32.7 28.2 27.8 28.0 34.7 32.4 31.1 Girls’ and children’s o u terw ear............... ........ 71.0 70.7 68.0 67.2 68.7 69.1 69.1 70.6 69.9 70.5 67.1 66.1 66.4 67.5 F ur goods and miscellaneous apparel............. 57.9 56.7 59.4 54.5 63.2 64.1 63.0 59.4 62.3 58.8 57.5 58.5 60.2 60.2 Miscellaneous fabricated textile prod ucts..................................................................... 118.5 116.4 115.2 119.5 123.9 125.0 124.1 119.8 113.8 114.7 118.8 116.3 112.6 113.6 Paper and allied products......................... 473.4 473.2 471.1 474.4 479.5 480.8 483.9 485.3 484.0 476.3 482.7 475.4 475.1 469.6 474.0 Paper and pulp_____ ____________ ________ 179.7 179.8 181.3 182.5 183.1 183.9 184.9 186.6 183.0 183.9 181.2 181.1 181.4 181.9 Paperboard....... .................................. .............. 54.5 54.4 54.8 54.9 54.9 54.4 64.8 55.2 53.4 62.8 54.6 54.6 54.0 56.4 Converted paper and paperboard prod ucts..................................................................... 97.7 96.6 97.6 96.8 97.5 98.6 98.6 97.5 98.7 98.3 97.3 97.3 94.9 95.7 Paperboard containers and boxes...... ................ 141.3 140.3 141.5 144.5 145.4 146.6 147.4 145.7 143.0 144.9 142.3 142.1 139.1 140.1 Printing, publishing, and allied Indus tries....................................................... 588.0 580.6 576.3 579.2 587.3 604.3 605.6 602.6 595.9 592.1 596.8 594.6 596.1 595.7 591.5 Newspaper publishing and printing.................. 161.8 160.7 160.8 163.7 179.9 178.9 177.9 177.4 175.0 177.1 176.4 177.0 175.5 172.4 Periodical publishing and printing.................... 27.9 28.0 28.0 28.2 27.9 28.2 27.8 26.7 26.4 26.4 27.4 27.6 29.7 29.8 Books..................................................................... 46.2 45.8 45.9 46.2 45.7 46.7 46.7 46.0 46.4 46.1 45.6 45.6 44.4 43.0 Commercial printing............................................ 228.8 226.8 229.3 232.8 232.0 232.3 231.4 228.0 228.0 230.8 230.2 230.8 230.3 229.5 Bookbinding and related industries................... 38.4 38.9 38.7 39.1 39.3 39.1 39.8 38.5 40.1 39.0 38.0 38.0 38.0 38.1 Other publishing and printing indus tries..................................................................... 76.9 76.7 76.5 80.2 78.1 78.9 79.0 77.7 77.9 77.3 77.0 77.1 77.9 78.8 Chemicals and allied products.................. 530.5 522.5 517.3 515.4 515.4 518.6 520.3 522.7 522.9 521.0 520.4 624.6 527.1 506.1 510.8 Industrial chem icals.................. ....................... 164.6 163.7 164.1 164.2 164.9 164.6 165.3 166.9 167.6 167.3 165.8 166.6 164.7 169.0 Plastics and synthetics, except glass..... .. ......... 109.4 109.8 110.7 110.4 111.0 110.8 111.9 110.8 110.7 107.0 108.9 109.2 102.6 103.5 Drugs.................................................................... 60.5 60.5 60.3 59.4 59.2 60.1 60.1 60.0 59.6 59.6 58.7 58.9 58.2 58.8 Soap, cleaners, and toilet goods_____________ 61.6 61.1 60.6 61.3 62.8 62.2 62.9 62.2 60.9 60.0 59.4 59.6 58.4 56.1 Paints, varnishes, and allied products_______ 35.6 35.1 34.7 35.8 35.2 36.6 34.7 37.3 37.6 37.3 35.5 36.3 35.5 36.7 Agricultural chemicals......... ............. .................. 31.0 34.5 29.3 27.5 28.9 28.4 26.5 26.4 28.0 29.0 38.4 39.8 30.9 31.0 Other chemical p roducts...____________ ____ 56.3 56.1 55.7 56.7 57.7 58.0 68.4 59.2 69.1 59.3 57.1 57.5 55.8 65.6 Petroleum refining and related indus tries........................................................ 119.7 117.2 117.7 117.2 118.7 120.4 121.3 122.5 128.4 129.7 129.9 128.7 128.4 130.6 137.7 Petroleum refining.................................. 96.1 96.3 95.4 96.8 102.6 104.2 104.5 104.1 105.1 107.1 113.1 94.9 95.8 95.9 Other petroleum and coal products___ 20.9 21.6 22.3 23.3 24.6 25.4 25.7 25.8 25.5 25.4 24.6 23.5 23.3 24.6 Eubber and miscellaneous plastic prod ucts........................................................ 302.6 Tires and inner tubes......... ........... ..................... Other rubber products______ _______ ______ Miscellaneous plastic products_____________ 302.6 76.0 126.2 100.4 301.6 75.7 126.2 99.7 3C4.8 76.7 129.0 99.1 306.4 76.9 129.8 99.7 308.9 76.5 130.1 102.3 310.9 76.5 130.7 103.7 308.5 77.0 129.9 101.6 303.4 75.8 127,5 100. 1 296.1 75.0 122.9 98.2 303.5 297.6 76.1 74.8 127.7 125.1 99. T 97.7 293.5 74.2 123.7 95.6 280.2 73.0 117.0 90.2 288.7 78.2 120.8 89.7 Leather and leather products...... ............. 302.3 Leather tanning and finishing______________ Footwear, except rubber___________________ Other leather products....................................... 310.3 27.8 209.6 72.9 312.8 28.2 211.9 72.7 310.2 28.9 211.1 70.2 317.6 29.3 213.1 75.2 318.8 29.1 210.3 79.4 316.6 29.0 208.1 79.5 319.1 28.8 211.6 78.7 326.6 28.8 218.1 79.7 316.4 27.7 213.8 74.9 321.3 28.7 216.4 76.2 313.3 28.1 211.3 73.9 317.7 28.1 213.4 76.2 318.8 28.9 213.8 76.2 322.9 29.9 216.4 76.5 82.1 43.2 805.2 17.2 82.4 43.3 804.1 17.0 82.9 44.8 801.5 17.4 83.3 44.4 843.1 17.6 83.5 44.4 857.8 17.7 83.9 44.9 867.1 17.9 84.2 46.2 862.7 18.2 83.9 46.6 848.7 18.5 84.1 46.9 840.8 18.6 85.0 46.4 840.5 18.5 85.0 45.5 814.8 18.2 83.9 44.4 809.5 18.2 86.7 45.0 800.0 18.8 89.2 44.6 801.8 19.3 554.1 25.0 75.6 623.7 211.5 132.4 153.8 26.0 553.3 24.8 75.5 524.1 211.5 132.6 154.0 26.0 554.0 25.2 75.3 525.9 211.7 133.1 155.1 26.0 556.8 25.9 75.4 528.5 212.2 133.9 156.2 26.2 55S.2 26.0 76.1 530.1 212.6 134.5 156.8 26.2 559.1 26.0 77,3 531.7 213.2 134.5 157.5 26.5 563.5 26.4 76.8 538.7 216.1 136.0 159.9 26.7 669.3 26.7 76.6 545.8 218.5 137.9 161.9 27.5 568.7 26.9 76.1 544.8 218.0 137.9 161.4 27.5 563.3 26.7 76.4 539.3 215.7 136.6 160.0 27.0 560.2 26.6 75.4 529.3 211.8 134.1 156.9 26.5 559.5 26.5 76.1 527.4 211.6 133.6 156.2 26.0 568.7 26.9 78.3 538.7 216.8 136.4 159.4 2d 1 581.9 27.9 77.9 543.6 220.2 137.3 159.4 26.7 Transportation and public utilities: Local and interurban passenger transit: Local and suburban transportation................... Intercity and rural buslines................................. Motor freight transportation and storage_______ Pipeline transportation........................................... Communication: Telephone communication.................................. Telegraph communication 3................................ Radio and television broadcasting..................... Electric, gas, and sanitary services....................... Electric companies and systems____________ Gas companies and systems................................ Combined utility systems__________ _______ Water, steam, and sanitary sy stem s................ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW, JUNE 1963 736 T able À-3. Production workers in nonagricultural establishments, by industry 1—Continued fin thousands] Annual average 1962 1963 Industry Apr.3 Mar.3 Feb. Wholesale ami retail trad« 4 Wholesale trade.......................................... Motor vehicles and automotive equipm ent___________________________ Drugs, chemicals, and allied products Dry goods and apparel_____________ Groceries and related products________ Electrical goods____________________ Hardware^ plumbing and heating goods__________________________ Machinery, equipment, and supplies.— Retail trade 4_______________________ General merchandise stores Department stores T.lmited price variety stores. Food stores_______________________ Grocery, meat, and vegetable stores.. Apparel and accessories stores___ ____ Men’s and boy’s apparel stores_____ Wnmpri'i! rp.nriy-t.n-wpftr st.orps _ Family clothing stores____________ Shoe stores .... Furniture and appliance stores_______ .......... .. . Other retail trade * Motor vehicle dealers______________ Other vehicle and accessory dealers___ Drug stores Finance, insurance, and real estate: Banking___________________________ Security dealers and exchanges________ Insurance carriers___________________ Life insurance_____________________ Accident and health insurance_______ Fire, marine, and casualty insurance Services and miscellaneous: Hotels and lodging places: Hotels, tourist courts, and motels____ Personal services: Laundries, cleaning and dyeing plants. Motion pictures: Motion picture filming and distributing Jan. Nov. Dec. Oct. Sept. Aug. July June May Apr. 1960 8,741 8,710 8,822 9,657 9,100 8,939 8,868 8,791 8,775 8,817 8,757 8,785 8,744 8,810 2,633 2,633 2,643 2,689 2,676 2,677 2,668 2,671 2,657 2,642 2,603 2,598 2,597 2,610 191.9 191.0 189.9 191.3 190.7 191.4 191.6 191.5 191.5 189.6 186.6 186.0 182.0 181.5 164.9 164.3 163.8 166.1 166.2 165 4 164.5 165.0 163. 7 162.8 161.8 161.2 158.7 155.6 111.1 110. 5 111.4 112.0 112.3 113.0 112. 5 113.0 113.0 112.1 110.6 109.5 111.1 112.0 432.2 430.3 433.8 445. 6 445.5 440.5 435.8 434.8 442.1 442.4 433.0 434.4 435.7 439.1 189.5 189.5 189.5 189.4 188.8 188.1 187.4 188.9 188.7 187.2 183.9 184.1 179.5 183.6 124.1 123.8 123.5 124.6 124.9 125.3 125. 7 126.2 125.9 125.6 123.4 122.6 124.0 127.7 441.2 439.9 438.5 438.8 437.2 437.2 438.3 437.4 436.6 434.1 428.6 426.8 414.1 412.0 6,108 6,077 6,179 6,968 6,424 6,262 6, 200 6,120 6,118 6,175 6,154 6,186 6,147 6,201 1,349. 8 1,331.6 1,404. 0 1,910.3 1,567.6 1,462. 8 1, 430. 2 1, 388. 2 1,377.1 1, 402. 4 1,399. 9 1,411.0 1, 433. 5 1,447.9 797.4 785. 6 837.3 1,163. 8 935.2 859.3 834.7 810. 2 802.5 823.0 822.4 827.2 837.6 843.6 284.1 278.2 289.0 390. 8 322.5 307.7 304.9 290 4 287.3 291. 9 297.5 303.9 309.3 316.8 1,297. 9 1.302.3 1,292. 7 1,321.5 1,301.1 1, 290. 4 1,275. 2 1,272. 6 1,283.9 1,283.1 1,279. 5 1,284. 5 1, 273. 4 1,273.1 1,137. 7 1.136.4 1,133. 2 1,152.4 1,139. 9 1,131.8 1,119.1 1,118.5 1,127. 6 1,126.0 1,119.7 1,118.6 1,109.7 1,106. 5 582.5 572.1 599.3 737.7 632.7 611.9 601.0 569.5 569.5 601.9 607.3 645.6 586.9 682.3 98.9 101.2 97.9 96.2 98.0 103.1 98.6 95.6 99.4 107.1 135.3 106.3 100.5 97.3 229.1 221. 6 230.0 281.0 245.2 236. 6 229. 9 218.4 219. 4 229.1 234.2 241.4 225.0 223.3 92.0 92.5 94.3 89.8 88.2 94.2 88.5 88.1 93.1 95.2 123.2 99.2 89.7 89.5 100.8 97.5 100.1 118.6 105.9 106.4 108.3 101.5 101.6 107.5 110.6 127.4 102.9 106.3 369.6 367.7 370.4 387.2 373.9 368.9 367.8 364.0 363.4 365.4 362. 7 365. 7 364.2 368.9 2, 508.4 2, 503.3 2,512. 4 2, 611.4 2,548. 4 2, 527. 7 2, 525. 7 2, 526.1 2, 524. 2 2, 522. 2 2, 504. 9 2, 479. 6 2, 489. 7 2,528.3 615.6 614.8 611.8 607.0 603.6 600.0 596.2 596.8 594.6 589.0 583.6 581.7 576.1 596.2 113.1 111. 6 113.5 122.9 118.8 114.1 114.3 115.4 116.2 116.3 112.9 110.6 117.7 123.1 353.8 352.5 355. 9 375.0 359.8 357.5 355.5 355.1 351.1 353.1 351.0 348.9 348.4 347.5 607.5 122.7 779.6 427.0 47.5 267.8 598.2 122.7 774.9 426.0 46.9 265.4 598.3 123.8 776.7 427.8 47.0 265.4 592.0 119.0 777.0 428.8 46.4 265.2 610.7 116.1 783.8 429.5 47.3 270.2 619.9 121.4 789.7 431.3 47.8 272.7 616.8 123.1 786.3 429.2 47.8 271.4 538.3 565.4 606.3 605.0 579.9 521.9 507.4 503.8 485.0 369.9 378.1 380.3 376.1 369.8 377.9 389.2 24.2 23.9 23.6 23.4 24.6 28.1 29.0 616.4 111.1 785.8 431.7 47.1 270.0 614.2 110.5 784.1 430.7 46.9 269.7 610.9 109.8 781.0 429.3 46.7 268.2 613.3 110.6 783.2 429.2 46.9 270.0 611.5 111.5 782.8 428.5 47.2 270.1 610.8 113.3 781. 6 428.2 47.2 269.2 532.0 531.7 525. 2 528.0 529.7 357.2 355.2 360.0 361.0 364.6 368.0 369.4 22.1 22.2 23.4 24.7 23.9 24.1 24.1 • For comparability of data with those published in issues prior to Decem ber 1961 and coverage of these series, see footnote 1, table A-2. For mining, manufacturing, and laundries, cleaning and dyeing plants, data refer to production and related workers; for contract construction, to construction workers; and for all other industries, to nonsupervisory workers. P r o d u c tio n a n d re la ted w o rk e rs include working foremen and all nonsuper visory workers (including leadman and trainees) engaged in fabricating, processing, assembling, inspection, receiving, storage, handling, packing, warehousing, shipping, maintenance, repair, janitorial and watchmen services, product development, auxiliary production for plant’s own use (e.g., power plant), and recordkeeping and other services closely associated with the above production operations. 575.9 107.0 763.9 420.7 46.0 260.3 C o n s tr u c t io n w o rk e rs include working foremen, journeymen, mechanics, apprentices, laborers, etc., engaged in new work, alterations, demolition, repair, and maintenance, etc., at the site of construction or working in shop or yards at jobs (such as precutting and preassembling) ordinarily performed by members of the construction trades. N o n s u p e r v is o r y w o rk e rs include employees (not above the working super visory level) such as office and clerical workers, repairmen, salespersons, operators, drivers, attendants, service employees, linemen, laborers, janitors, watchmen, and similar occupational levels, and other employees whose services are closely associated with those of the employees listed. 3 Preliminary. » Data relate to nonsupervisory employees except messengers. * Excludes eating and drinking places. The revised series on employment, hours and earnings, and labor turnover in non agricultural establishments should not be compared with those published in issues prior to December 1961. (See footnote 1, table A-2, and “ Technical Note, The 1961 Revision of the BLS Payroll Employment Statistics," M o n th ly Labor R e view , January 1962, pp. 59-62.) Moreover, if future benchmark adjustments require further revisions, the figures presented in this issue should not be compared with those in later issues which reflect the adjustments, Comparable data for earlier periods are published in E m p lo y m e n t a n d Earnings S ta tis t ic s for t h e U n ite d S ta te s , 1909-60 (BLS Bulletin 1312), which is available at depository libraries or which may be purchased from the Superintendent of Documents for $3. For an individual industry, earlier data may be obtained upon request to the Bureau. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 A.—EMPLOYMENT T able 737 A-4. Employees in non agricultural establishments, by industry division and selected groups, seasonally adjusted1 [In thousands] 1963 1962 Industry division and group Apr.* Mar.* Total..................................................... M in in g ......................... ................... Contract construction_______________ Manufacturing_____ ________________ Durable g o o d s............................................ Ordnance and accessories________ Lumber and wood products, except furniture__ Furniture and fixtures__ ___________ Stone, clay, and glass products_____ Primary metal industries__________ Fabricated metal products_________ Machinery_______________ Electrical equipment and supplies________ Transportation equipment___________ Instruments and related p roducts...___ Miscellaneous manufacturing industries.. Nondurable goods........................... ............. Food and kindred products_________ Tobacco manufactures__________ Textile mill products_______________ Apparel and related products........... ...... Paper and allied products_________ Printing, publishing, and allied industries__ Chemicals and allied products__ Petroleum refining and related Industries__ Rubber and miscellaneous plastic products .. Leather and leather products_______ Transportation and public utilities______ _ Wholesale and retail trade__________ Wholesale trade................... ................. Retail trade_____________________ _ Finance, insurance, and real estate______ Service and miscellaneous______________ Government__________________ Federal.......................................... State and local___________ i For coverage of the series, see footnote 1, table A-2. * Preliminary. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 56,229 55,953 55,730 55,536 55,580 55, 597 55,647 55, 583 55,536 55, 617 55, 535 55,403 630 625 625 623 625 636 638 641 646 648 652 659 2,719 2,635 2,646 2,651 2,654 2,696 2,716 2,715 2,731 2,738 2,671 2,716 16,928 16,762 16, 665 16, 632 16,681 16,695 16,781 16,805 16, 795 16,908 16,923 16, 891 9, 591 9,473 9,423 9,399 9,418 9,413 9,470 9,486 9,461 9,552 9,555 9,544 216 217 219 220 220 221 222 222 220 217 213 213 613 612 610 608 603 605 602 603 609 607 611 609 382 381 378 380 380 380 378 380 385 386 386 387 579 561 566 562 665 672 fiSI 57Q 579 576 583 581 1,174 1,150 1,136 1,121 1,121 1,115 1,119 1,134 1,141 1,149 1,163 1,199 1,131 1,115 1,109 1,104 1,111 1,110 1,117 1,129 1,122 1,132 1,131 1,135 1,476 1,463 1,461 1,466 1.468 1,481 1,482 1,471 1,480 1,474 L 470 M 60 1,544 1,538 1,534 1, 533 1,535 1,527 1,546 1, 528 1,541 1, 555 1, 554 1, 541 1,721 1,683 1,671 1,662 1,669 1,652 1,674 1, 694 1,619 l! 688 1,687 1,663 365 362 361 360 359 358 359 358 362 362 359 359 390 386 383 383 387 392 392 393 397 401 400 399 7,337 7,289 7,242 7,233 7,263 7,282 7,311 7,319 7,334 7,356 7,368 7,347 1, 777 1,781 1, 768 1,770 1,773 1,763 1,769 1,770 1,763 1, 777 1,774 1,776 88 87 88 87 90 90 93 96 93 89 87 88 863 861 858 860 866 868 871 874 879 885 891 890 1,271 1,251 1,229 1,220 1,229 1,231 1,242 1,243 1,246 1,249 1,257 1,248 604 604 602 602 604 601 603 603 606 606 606 604 933 911 915 913 914 938 937 938 937 937 937 935 862 858 856 853 853 855 855 853 855 858 853 849 189 188 188 1QQ 187 189 189 191 191 198 199 397 394 392 391 389 389 390 393 395 396 399 392 353 350 350 350 356 358 360 358 362 360 365 366 3,918 3,914 3,913 3,836 3,921 3,918 3,935 3,928 3,932 3,913 3,934 3, 936 55,260 656 2,734 16,848 9,490 211 611 382 1,223 1,124 1,453 1 528 l! 637 3,56 394 7,358 1,788 88 889 1,258 602 934 847 384 369 3,935 11, 767 11, 756 11,679 11,637 11,573 11,600 11, 594 11,612 11,627 11,652 11,621 11, 596 11, 546 3,123 3,108 3,093 3,083 3.074 3,076 3,085 3,090 3,082 3,100 3.096 3,077 3,062 8,644 8,648 8, 586 8,554 8,499 8,524 8,509 8,522 8,545 8,552 8,525 8,519 8,484 2,847 2,845 2, 836 2,828 2,821 2,822 2,813 2, 799 2,796 2,792 2,788 2, 786 2,778 7,922 7,935 7,917 7,895 7,876 7,846 7,831 7,809 7,805 7,783 7,749 7,692 7,675 9,498 9, 481 9,449 9,434 9,429 9,384 9,339 9,274 9,204 9,183 9,197 9,127 9,088 2,356 2, 363 2,356 2,379 2.391 2,381 2.371 2,369 2,374 2,375 2,366 2,343 2,325 7,142 7,118 7,093 7,055 7.038 7,003 6, 968 6. 905 6.830 6.808 1 6. 831 6. 784 6, 763 N ote: The seasonal adjustment method used is described in “ New Sea sonal Adjustment Factors for Labor Force Components,” Monthly Labor Review, August 1960, pp. 822-827. T able A-5. Production workers in manufacturing industries, by major industry group, seasonally adjusted 1 ____________[In thousands] 1963 1962 Major industry group Apr.* Mar.* Manufacturing. Durable goods______________________________ Ordnance and accessories_____________ H"~”! Lumber and wood products, except furniture*. Furniture and fixtures___________________ Stone, clay and glass products____ _IZIZIII! Primary metal industries________________ Fabricated metal products___________ Machinery_______________________ ..I I I ” ! Electrical equipment and supplies_____ I..III! Transportation equipm ent___ ___________ I! Instruments and related products........... III” ! Miscellaneous manufacturing industries_____ Nondurable goods............................... .................... Food and kindred products_________ IIIIIII! Tobacco manufactures_________________III! Textile mill products________________ I II” ! Apparel and related products_________ I II” Paper and allied products................... I Printing, publishing, and allied industries” ” ! Chemicals and allied products......................... Petroleum refining and related industries.” ” ! Rubber and miscellaneous plastic products__ Leather and leather products______________ * Preliminary. 686 1 3 3 - 63 - 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Feb. Jan. Dec. Nov. Oct, Sept. Aug. July June May Apr. 12,518 12,384 12,284 12,257 12,311 12,324 12,416 12,446 12,432 12, 551 12, 581 12, 566 12,541 7,035 6,928 6,874 6,853 6,880 6,875 6,933 6,953 6,925 7,024 7,035 7,037 7,000 97 98 99 101 100 99 102 103 101 100 97 98 98 551 552 549 547 541 543 539 541 545 543 644 546 547 318 316 314 315 317 317 315 315 321 320 320 321 318 465 451 447 448 451 459 465 462 467 468 467 467 460 950 928 914 898 898 885 892 906 910 920 934 972 995 866 851 846 842 849 847 854 866 858 868 871 873 864 1,025 1,014 1,011 1,016 1,021 1,031 1,035 1,026 1,034 1,029 1.027 1,018 1,012 1,045 1,038 1,032 1,032 1,034 1,029 1,047 1,032 1,045 1,057 1,058 1,051 1,040 1,175 1,141 1,127 1,122 1,131 1,119 1,139 1,160 1,090 1,164 1,161 1,142 1,122 232 230 229 228 228 228 228 228 231 231 231 230 227 311 309 306 306 310 321 316 317 316 325 322 321 317 5,483 5,456 5,410 5,404 5,431 5,449 5,483 5,493 5,507 5,527 5. 546 5, 529 5, 541 1,177 1,184 1,169 1,173 1,175 1,168 1,178 1,179 1,170 1,181 1,180 1,184 1,193 75 76 75 76 78 79 84 82 81 77 76 76 77 774 774 771 772 780 783 777 787 791 798 803 803 802 1,130 1,111 1,090 1,081 1,089 1,093 1,105 1,105 1,109 1,110 1,120 1,111 1,121 477 478 476 476 478 478 477 481 476 481 482 479 479 590 582 579 581 582 597 599 598 6G8 599 600 599 598 522 520 519 521 518 517 520 519 524 523 628 521 518 121 118 120 121 121 118 120 120 127 128 129 128 129 306 305 302 301 304 300 300 301 306 307 312 304 297 311 308 309 308 315 318 316 320 318 322 316 323 327 N ote: The seasonal adjustment method used is described in “ New Sea sonal Adjustment Factors for Labor Force Components.” Monthly Labor Review, August 1960, pp. 822-827. MONTHLY LABOR REVIEW, JUNE 1963 738 T able A-6. Unemployment insurance and employment service program operations 1 [All Items except average benefit amounts are In thousands] 1962 1963 Item Mar. E m p loym en t service:J N e w applications for w ork ---------------------N onfarm p lacem ents............. ............... ........... Feb. 861 496 Dec. Jan. 904 423 1,097 459 Nov. 766 434 907 533 Sept. Oct. 948 643 856 652 Aug. 879 642 June July 914 580 May 1,102 605 Apr. 899 656 Mar. 847 577 860 511 State u n em p loym en t insurance programs: 1,267 956 1,197 1,395 1,083 1,133 1,147 1,353 1,171 1,127 1,308 2,102 1,747 In itial claim s * 4......... - ....................................... Insured u n em p lo y m e n t4 (average w eek ly 1,625 1,385 1,331 1,469 1,543 1,469 2,546 2,063 1,570 1,831 2,298 2.591 2,218 v o lu m e).............. ................................. ............. 3.6 3.4 3.3 3.8 3.6 5.1 4.0 3.9 4.5 5.6 6.2 5.5 6.3 B a te of Insured u n em p loym en t «................. 5,702 5,207 4,695 5,563 5,507 5,781 6,391 7,088 9,121 9,091 9,025 10,002 6,307 W eeks of un em p loym en t com pensated— A verage w eek ly benefit am ount for to ta l u n em p loym en t________________________ $35.80 $35.70 $35.52 $35.11 $34.95 $34.69 $34. 42 $34.29 $34.01 $34.20 $34.04 $34.52 $34.98 T o ta l benefits p aid______________________ $316,422 $313,272 $342,411 $214,203 $193,551 $176,608 $160,559 $197,414 $186,965 $188,871 $215,015 $239, 562 $310,246 U n em p loym en t com pensation for ex-service m en: J « In itial claim s *__________________________ Insured un em p loym en t * (average w eek ly v o lu m e)............................................................. W eeks of u n em p loym en t com pensated__ T o ta l benefits paid............................................ 39 31 29 31 27 39 30 25 22 25 26 71 77 77 303 306 338 $9, 932 $10,027 $11,100 65 235 $7,679 57 222 $7,298 52 214 $7,019 52 200 $6, 549 52 211 $6,934 46 175 $5,659 40 165 $5,420 40 177 $5,703 45 190 $6,036 49 209 $6,545 U n em p loym en t com pensation for Federal civilian e m p lo y ees:8 8 In itial c la im s 8__________________________ Insured u n em p lo y m e n t1 (average w eek ly v olu m e).................... ............................... ......... W eeks of u n em p loym en t c o m p e n s a te d ... T o ta l benefits p aid ............................................ 11 12 20 12 12 14 10 12 15 10 11 11 11 35 150 $5, 591 38 148 $5,433 37 156 $5,744 31 116 $4,262 29 115 $4,282 27 111 $4,182 25 98 $3,797 26 114 $4,354 26 97 $3,653 24 107 $4,172 26 114 $4,297 29 128 $4,711 34 152 $5,391 5 7 19 12 16 16 32 22 65 7 4 4 5 50 61 60 65 64 61 57 73 124 129 133 148 132 138 137 173 $80.24 $80. 58 $79.97 $79. 56 $78. 73 $74. 47 $83. 26 $78.53 $11,004 $10,881 $13,732 $10,358 $10,373 $11,081 $10,134 $10,081 52 98 $75. 84 $7,256 44 108 $71.91 $7,825 1,699 1,614 Railroad u n em p loym en t insurance: A pplications 10................... ................................. Insured u n em p loym en t (average w eek ly v olu m e)............................ ............. ................... N u m b er of paym en ts 11......................... ......... A verage am ount of benefit p aym en t « ----T o ta l b enefits paid 18____________________ A ll programs: 14 Insured u n em p lo y m e n t8________________ 25 2,465 27 2,726 2, 778 2,223 * Includes data for Puerto Rico, beginning January 1961 when the Com monwealth’s program became part of the Federal-State UI system. 1 Includes Guam and the Virgin Islands. * Initial claims are notices filed by workers to indicate they are starting periods of unemployment. Excludes transitional claims. 4 Includes interstate claims for the Virgin Islands. 8 Number of workers reporting the completion of at least 1 week of unem ployment. « The rate is the number of insured unemployed expressed as a percent of the average covered employment in a 12-month period. r Excludes data on claims and payments made jointly with other programs. 8 Includes the Virgin Islands. 8 Excludes data on claims and payments made jointly with State programs. 1 0 An application for benefits is filed by a railroad worker at the beginning of his first period of unemployment in a benefit year; no application is re quired for subsequent periods in the same year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,780 1,539 1,497 1,628 52 64 74 125 155 187 $73. 03 $76. 76 $79. 55 $9,052 $11,807 $14,791 1,719 1,986 2,381 1 1 Payments are for unemployment In 14-day registration periods. 1 » The average amount is an average for all compensable periods, not adjusted for recovery of overpayments or settlement of underpayments. 13 Adjusted for recovery of overpayments and settlement of underpay ments. 14 Represents an unduplicated count of insured unemployment under the State. Ex-servicemen and UCFE programs and the Railroad Unemployment Insurance Act. Source: U.S. Department of Labor, Bureau of Employment Security for all items except railroad unemployment insurance, which is prepared by the U.S. Railroad Retirement Board. B.—LABOR TURNOVER 739 B.—Labor Turnover T a ble B -l. Labor turnover rates, by major industry group fPer 100 employees] 1963 1962 Annual average Major industry group Mar.2 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 4.0 1960 Accessions: Total* M anufacturing: A ctu a l________________________________ S e a s o n a lly a d j u s t e d . . . ..................................... ....................... D urable goods........................... ........... ............. Ordnance and accessories_____________ L um b er and wood products, excep t fur n itu re______________________________ F u rniture and fixtu res................... ............. Stone, clay, and glass products________ Prim ary m etal in d u stries_____________ F ab ricated m etal products____________ M ach inery........................................................ E lectrical eq u ip m en t and su p p lies____ T ran sp ortation eq u ip m en t____________ In stru m ents and related products_____ M iscellaneous m anufacturing in d u s tries................................................................. N ondu rab le g oods....................... ..................... F ood and kindred produ cts....................... T obacco m an ufactures________________ T ex tile m ill products_________________ A pparel and related produ cts_________ Paper and allied products_____________ P rin tin g, pu blishing, and allied in du stries_______ _____________________ C hem icals and allied p rod u cts................. Petroleum refining and related in d u s tries......... ........... ........................ ................. R ubb er an d m iscellaneous plastic products........................................................ L eather and leather p rodu cts_________ N onm anufacturing: M eta l m in in g _________________________ C o a lm in in g .......... ..................... ................... 3.4 3.9 3.3 3.9 3.6 3.9 2.4 3.5 3.0 3.6 3.9 4.0 4.9 3.8 5.1 4.0 4.5 4.1 5.0 3.9 4.3 4.3 3.7 4.3 4.1 3.8 4 .4 3.3 2.0 3.2 2.2 3.5 2.4 2.3 1.6 2.8 1.9 3.6 2.4 4.5 2.5 4.6 2.6 3.8 3.0 4.5 3.9 4.1 2.9 4.0 2.8 3.8 3.0 3.9 2.8 3.5 2.6 5.5 3.8 4.5 3.4 3.5 2.6 2.7 3.2 2.6 4.5 3.9 3.4 3.6 3.2 2.7 2.6 3.2 2.4 4.7 4.1 3.5 3.4 3.7 3.0 3.0 3.7 2.6 2.5 2.5 1.9 2.3 2.5 2.1 2.1 2.8 1.7 3.2 3.3 2.4 2.5 3.0 2.3 2.7 3.5 2.4 4.5 4.3 2.8 2.7 3.9 2.8 3.4 4.5 2.6 5.4 5.0 3.3 2.7 4.5 2.9 3.8 8.0 2.6 5.4 6.0 4.0 3.3 5.5 3.2 4.0 6.1 3.4 6.3 5.2 3.8 2.8 4.0 2.9 3.5 4.2 2.8 8.8 4.7 4.8 2.8 4.6 3.7 4.4 4.4 3.9 7.5 5.1 4.6 2.5 4.5 3.1 3.8 4.3 2.7 7.3 4.6 5.4 2.2 4.3 3.1 3.6 4.5 2.6 5.2 4.5 4.3 2.6 4.0 3.2 3.6 4.4 2.6 5.3 4.1 3.6 3.4 4.4 3.0 3.6 4.7 2.6 4.8 3.9 3.4 2.4 3.9 2.9 3.2 4.3 2.4 5.0 5.1 6.3 2.4 3.6 5.8 6.8 6.9 6.0 6.2 6.4 6.4 5.8 5.6 5.3 3.4 4.4 2.2 3.5 4.4 2.3 3.4 3.8 2.6 3.3 5.3 2.1 3.7 4.1 3.7 3.3 5.8 2.2 2.5 3.2 5.9 1.9 3.1 1.6 3.1 3.9 5.5 2.7 4.4 1.9 4.2 6.4 4.4 3.5 5.3 2.4 5.3 9.2 16.0 3.8 5.2 2.8 5.8 10.0 19.8 4.2 6.2 3.0 5.4 9.1 8.9 3.9 6.7 2.9 5.7 9.0 3.2 4.2 6.6 4.1 4.5 6.6 3.0 4.1 6.1 2.8 4.0 5.6 2.7 3.7 5.1 2.8 3.6 4.2 1.8 3.6 5.1 2.5 4.2 5.9 6.1 3.5 5.6 2.6 4.1 6.0 5.6 3.2 5.3 2.6 2.4 2.3 2.6 1.9 2.9 2.0 2.0 1.3 2.5 1.4 3.2 1.8 3.7 2.1 3.4 2.0 8.2 2.0 4.1 3.3 2.9 2.2 2.7 2.4 2.8 2.6 2.9 2.1 3.0 2.0 1.3 .9 1.3 .6 .8 1.2 1.5 1.7 1.5 2.7 1.6 1.5 1.7 1.3 1.2 3.2 4.1 2.9 4.2 3.1 5.9 2.2 3.5 3.0 4.4 3.7 4.8 4.5 4.7 4.3 5.5 4.1 6.1 4.4 6.1 4.1 5.3 3.6 4.2 3.4 4.3 3.8 5.0 3.1 4.8 2.9 2.0 2.9 2.2 3.2 2.2 2.0 1.4 2.9 1.5 2.7 1.7 2.9 2.5 2.4 2.5 2.4 1.4 3.8 1.2 3.4 1.8 4.1 1.6 2.4 1.6 2.7 2.1 3.4 1.6 Accessions: New hires Manufacturing: Actual—.................................... ............... Seasonally adjusted_________________ Durable goods.......................... ................. Ordnance and accessories___________ Lumber and wood products, except furniture________________________ Furniture and fixtures______________ Stone, clay, and glass products.............. Prim ary metal industries___________ Fabricated metal products__________ Machinery________________________ Electrical equipment and supplies____ Transportation equipment__________ Instrum ents and related products____ Miscellaneous manufacturing indus tries...................................................... 2.0 2.4 1.9 2.3 2.5 2.3 3.1 2.3 3.2 2.4 2.9 2.5 3.4 2.5 2.9 2.4 2.7 2.2 2.7 2.2 2.2 2 .2 1.8 2.3 2.8 2 .1 1.8 1.3 1.7 1.3 1.7 1.4 1.1 .9 1.6 1.2 2.2 1.5 2.6 1.8 2.6 1.8 2.4 2.2 3.1 2.9 2.6 2.0 2.3 2.0 2.2 1.9 1.9 1.9 1.9 1.8 3.5 2.8 2.1 1.0 2.1 1.8 1.5 1.6 1.9 3.0 2.7 1.5 .9 1.7 1.8 1.5 1.6 1.6 2.7 2.7 1.3 .9 1.9 1.9 1.6 1.6 1.8 1.7 1.5 .9 .6 1.3 1.1 1.2 1.2 1.1 2.5 2.5 1.3 .7 1.8 1.4 1.7 1.8 1.7 3.6 3.4 1.8 .9 2.6 1.7 2.2 2.4 2.0 4.4 4.3 2.1 1.0 3.0 1.9 2.7 2.9 2.0 4.6 4.8 2.5 1.0 2.9 1.9 2.6 2.1 2.2 4.7 4.2 2.5 .9 2.5 1.9 2.2 2.0 2.2 6.2 3.9 3.3 1.3 3.2 2.7 3.2 2.5 3.3 5.4 4.1 3.1 1.1 2.9 2.2 2.6 2.2 2.1 4.7 3.3 2.8 1.0 2.4 2.1 2.3 2.1 2.0 3.3 3.4 2.2 1.2 2.2 2.1 2.3 1.9 2.0 3.3 2.7 1.8 .9 2.1 1.6 2.0 1.6 1.7 3.4 2.8 2.0 .8 2.1 1.7 2.0 1.7 1.7 1.8 1.2 2.3 2.6 2.6 1.5 2.4 4.3 5.3 5.2 4.2 4.7 4.3 3.7 3.3 3.6 3.4 2.1 2.2 1.4 2.2 3.1 1.4 1.9 1.9 1.1 2.0 3.1 1.2 2.1 2.1 .2.0 1.9 3.2 1.3 1.3 1.7 3.3 1.2 1.5 .9 1.9 2.2 2.3 1.8 2.7 1.2 2.8 4.1 3.1 2.5 3.6 1.8 3.7 6.0 10.5 2.8 3.8 2.2 3.9 6.5 7.8 3.2 4.5 2.2 3.5 5.8 2.6 2.7 4.2 2.1 3.9 6.0 1.6 3.1 4.0 3.2 2.9 3.9 1.3 3.0 3.9 2.0 2.5 2.9 .8 2.6 3.4 1.9 2.3 2.2 .9 2.3 3.3 1.6 2.5 3.4 3.2 2.2 3.1 1.7 2.5 3.5 2.9 2.0 3.2 1.8 1.8 1.5 1.8 1.2 2.1 1.2 1.3 .7 1.9 1.0 2.5 1.2 3.0 1.5 2.7 1.4 2.6 1.5 3.3 2.6 2.3 1.6 2.1 1.7 2.1 1.8 2.1 1.4 2 .4 1 .4 Nondurable goods.............................. ........ Food and kindred products................... Tobacco manufactures........................ . Textile mill products......................... . Apparel and related products........... . Paper and allied products...................... Printing, publishing, and allied in dustries_________________________ Chemicals and allied products_______ Petroleum refining and related indus tries........................................................ Rubber and miscellaneous plastic products.................... ...................... . . Leather and leather products________ .7 .5 .7 .4 .6 .9 1.1 1.3 1.2 2.2 1.2 .9 1.0 .9 .8 1.9 2.3 1.7 2.4 1.6 3.3 1 .1 2.5 3.1 3.3 3.2 3.0 3.9 2.3 3.7 3.1 4.1 2.6 3.2 2.1 2.5 2.0 2.7 1 .9 2.1 1.7 2.8 2.9 1 .7 2 .9 Nonmanufacturing: M etal mining_____________________ Coal mining__________________ ____ 1.3 .7 1.3 1.0 1.6 .6 1 .1 .4 1.2 1.4 .8 1.4 .7 1.3 1.3 .5 2.8 .4 2 .0 1.8 .4 1.3 .5 1 .2 .6 1 .9 .4 S ee fo o tn o te * a t e n d o f table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .6 .7 .5 MONTHLY LABOR REVIEW, JUNE 1963 740 T able B -l. Labor turnover rates, by major industry group 1—Continued [Per 100 employees] Annual average 1962 1963 Major industry group M ar.8 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr: Mar. 1961 1960 Separations: Total * M anufacturing: 3.4 Seasonally adjusted-------------- ----------- 3.2 «? 7 3.9 gQ 3.8 5.0 5.2 4.1 S.7 3.6 5.8 4.3 4 .8 i-3 3.8 -M 4-6 3.8 4.0 3.9 3.6 S9 3.8 4.0 4.3 4.4 D urable goods........................... ..................... Ordnance and accessories................. ......... L um ber and wood products, except furniture_____________ ____ _________ Furniture and fixtures________________ Stone, clay, and glass products________ Prim ary m etal industries_____________ Fabricated m etal products......................... M ach inery.................. ............................... . . . Electrical equip m ent and su p p lies......... Transportation eq u ip m en t................... . . Instrum ents and related products_____ M iscellaneous m anufacturing ind us tries________________________________ 3.2 3.4 3.1 3.1 3.7 3.2 3.4 2.1 3.6 2.7 3.9 2.7 4.3 3.4 5.4 2.9 4.4 2.2 3.8 2.7 3.6 2.5 3.3 2.5 3.5 2.1 3.9 2.3 4.3 2.4 5.5 4.2 2.8 2.1 3.4 2.4 3.6 3.3 2.6 4.7 3.8 3.3 2.2 3.6 2.3 3.0 3.3 2.4 5.0 4.5 4.9 2.6 4.2 2.8 3.6 3.7 2.6 5.5 3.6 5.1 2.5 3.5 2.1 2.8 3.0 2.1 6.2 4.2 4.0 2.9 3.9 2.6 3.1 3.4 2.8 5.6 4.6 4.1 3.5 4.7 2.9 3.4 3.8 3.0 6.7 5.2 4.9 3.8 4.9 3.5 4.0 4.1 3.3 6.8 5.7 4.5 3.6 4.7 3.8 3.9 10.6 3.1 5.7 5.2 3.5 4.1 5.4 3.0 3.3 6.5 2.4 4.7 4.6 3.3 4.4 4.1 3.0 3.2 3.9 2.6 4.7 4.7 3.7 4.5 3.6 2.9 3.1 3.6 2.3 6.0 4.2 3.3 3.2 3.4 2.6 2.9 3.5 2.1 6.1 4.9 3.4 2.3 3.9 2.8 3.4 3.8 2.6 5.5 4.3 3.8 2.8 4.5 3.2 3.2 5.0 2.6 6.1 4.1 3.8 8.2 5.6 5.6 6.1 5.4 5.2 4.8 4.6 5.1 5.8 5.9 3.5 4.7 6.1 3.3 4.4 2.4 3.3 4.6 9.5 3.1 4.2 2.3 5.6 4.3 6.3 7.0 3.9 5.4 2.8 12.2 N ondurable g o o d s .._________ __________ Food and kindred products___________ T obacco m anufactures________________ T extile m ill products__________________ Apparel and related products_________ Paper and allied products_____________ Prin ting, publishing, and allied indus- 4.3 6.2 10.8 3.4 6.9 2.5 4.5 6.8 16.9 3.7 5.1 2.7 5.0 8.2 10.8 3.8 5.7 2.8 5.8 9.3 5.4 4.5 5.9 4.2 4.8 6.7 2.9 4.5 5.8 3.4 4.3 5.9 2.3 3.9 6.3 2.5 3.8 6.0 2.4 3.4 5.2 2.4 4.1 5.1 2.7 3.6 6.2 2.6 4.0 5.1 5.4 3.6 6.0 2.5 3.6 4.5 9.5 3.6 4.9 2.3 4.2 6.9 5.9 3.4 5.7 2.7 4.4 2.6 1.7 2.3 1.4 2.9 1.7 2.7 1.6 2.9 2.0 3.1 1.8 4.1 3.1 3.5 2.4 2.5 1.9 3.0 2.3 2.9 2.5 2.5 2.0 2.6 1.8 2.9 2.0 2.8 2.1 Chem icals and allied products________ Petroleum refining and related in d u s tries________________________________ R ubber and m iscellaneous plastic prod u c ts_________________________________ Leather and leather products__________ N onm anufacturing: M etal m in ing...................................................... Coal m in in g____________________________ 4.6 4.1 4.0 4.8 3.4 3.5 5.2 2.7 6.0 5.9 3.7 6.1 2.9 1.6 1.9 1.8 2.1 2.2 1.8 2.7 2.5 1.5 1.6 1.6 1.5 1.5 1.6 1.6 3.2 4.8 2.9 3.8 3.5 5.2 2.8 5.4 3.5 4.5 3.9 5.4 4.5 5.9 4.1 5.9 4.0 5.3 3.2 4.2 3.2 5.2 3.2 5.7 3.4 4.7 3.5 5.0 3.9 5.0 2.5 2.8 2.6 2.0 3.5 2.1 6.6 1.8 3.8 3.2 3.6 2.6 6.0 2.0 4.9 2.3 3.2 5.2 3.2 3.4 2.6 4.5 2.5 2.1 2.3 1.8 3.1 2.5 3.8 1.5 1.2 1.3 1.0 1.1 1.0 3.6 Separations: Quits Manufacturing: Actual____ ______________________ 1.2 S e a s o n a lly a d ju s te d ______ ____________ _______________ 1.0 \ 4 l.l 4 0.8 1.1 1 2 1 .8 1.5 1.4 2.4 1.4 2.1 1.5 1.4 1.3 1.5 1.5 1 .6 1.3 1.3 1.2 1.5 1 Durable goods______________________ Ordnance and accessories___________ Lumber and wood products except furniture.................................... -____ Furniture and fixtures______________ Stone, clay, and glass products_______ Primary metal industries___________ Fabricated metal products__________ Machinery........................... .................... Electrical equipment and supplies____ Transportation equipment__________ Instruments and related products____ Miscellaneous manufacturing Indus- 1.1 .9 .8 .8 .9 .9 .7 .6 .9 .8 1.2 1.0 2.0 1.7 1.8 1.5 1.2 1.1 1.3 1.3 1.3 1.0 1.2 1.2 1.1 1.0 1.0 2.1 1.9 .9 .5 1.0 .9 1.2 .8 1.2 1.6 1.5 .7 .4 .8 .7 1.0 .7 1.7 1.7 .8 .4 .9 .8 1.9 1.6 .8 .4 .9 .8 1.1 4.2 3.0 2.0 .9 2.2 1.5 2.2 1.6 1.9 3.7 3.1 1.9 .9 1.9 1.4 1.9 1.4 1.6 2.6 22 1.2 .6 1.2 .9 1.3 .9 1.2 2.5 2.1 1.2 .6 1.4 1.1 1.5 1.0 1.3 1.4 1.0 1.2 2.6 2.2 1.1 .6 1.2 1.0 1.2 1.0 1.1 1.8 2.0 1.0 .6 1.1 1.0 1.3 .8 1.2 1.9 1.5 1.0 .5 1.0 .8 1.1 .8 1.0 2.3 1.7 1.1 .6 .7 1.1 2.6 2.1 1.2 .5 1.3 .9 1.3 1.0 1.4 2.6 2.5 1.3 .6 1.4 1.0 1.3 1.1 .6 .3 .6 .6 .8 .5 .8 1.5 1.3 1.3 1.0 1.6 2.2 3.0 3.0 1.9 2.2 1.9 1.8 1.7 1.8 1.9 Nondurable goods_____ _____________ Food and kindred products_________ Tobacco manufactures............................ Textile mill products_______________ Apparel and related products________ Paper and allied products....... .............. Printing, publishing, and allied indus tries....................................................... Chemicals and allied products............... Petroleum refining and related indus tries____________________________ Rubber and miscellaneous plastic products________________________ Leather and leather products________ 1.4 1.4 .5 1.7 2.1 .9 1.2 1.2 .7 1.4 1.9 .7 1.3 1.3 .9 1.6 2.0 .8 1.0 1.1 1.8 2.1 .9 2.0 2.4 2.5 2.9 1.4 2.8 3.2 1.8 1.7 1.9 .8 2.1 2.6 1.0 1.7 1.8 .6 2.0 2.4 1.7 1.8 .6 2.1 2.5 1.1 2.9 4.0 2.1 2.6 3.1 2.5 1.1 1.1 1.5 1.4 .6 2.0 2.2 1.0 1.4 1.3 .8 1.8 2.1 .9 1.4 1.6 .9 1.6 2.0 1.0 1.6 1.7 1.0 1.4 .6 1.3 1.3 .8 1.6 1.9 .8 1.2 .6 1.1 .5 1.2 .6 .9 .5 1.3 .5 1.5 .7 2.5 1.8 2.1 1.2 1.4 .6 1.7 .8 1.5 .8 1.3 .8 1.3 .7 1.4 .7 1.5 .5 .5 .4 .4 .6 .7 1.4 1.2 .6 .7 .6 .5 .5 .5 .1 1.1 2.1 .9 1.6 1.0 2.0 .8 1.5 1.0 1.9 1.5 2.5 2.2 3.1 1.9 3.3 1.3 2.4 1.5 2.4 1.5 2.4 1.3 2.3 1.3 2.2 2.1 2.2 .9 .3 1.1 .3 1.2 .3 .8 .3 .9 .3 1.1 .4 2.2 .5 1.8 .6 1.3 .4 1.1 .3 1.2 ."3 1.4 .3 .9 .3 1.0 .4 1.5 .3 Nonmanufacturing: Metal mining_______________________ Coal mining.............................................. . See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.0 .7 .6 1.1 1.1 1. 1 1.1 1.1 .9 1.2 .9 1.1 1.6 2.3 1.2 .8 1.1 B.—LABOR TURNOVER 741 T a b l e B - l . Labor turnover rates, b y m ajor industry group 1— Continued [Per 100 employees] 1963 1962 Annual average Major industry group M ar.2 Feb. Jan, Dec, Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 2.2 2.4 1960 Separations: Layoffs Manufacturing: Actual___ _______ ________________ Seasonally adjusted_________________ Durable goods_________ __________ . . . Ordnance and accessories....................... Lumber and wood products, except furniture________________________ Furniture and fixtures................ ........... Stone, clay, and glass products............ . Prim ary metal industries................... Fabricated metal products__________ Machinery....... ........................... ........... Electrical equipment and supplies____ Transportation equipm ent.. _ _ ...... Instruments and related products____ Miscellaneous manufacturing Industries..................................................... 1.6 1.6 2.5 A0 2.3 1.9 2.3 A0 2.2 A4 1.6 A0 1.6 1 .8 1.9 A0 1.6 1 .8 2.2 A0 1.6 1 .6 1 .8 1 .6 1 .6 1.5 2.1 1.6 1.8 2.0 1.7 2.2 1.1 2.0 1.3 1.8 1.1 1.6 1.1 2.8 1.0 2.4 .5 1.7 .7 1.6 1.0 1.4 .8 1.6 .6 2.2 .7 2.6 .9 2.7 1.6 1.4 1.1 1.8 .8 1.7 1.9 .8 2.4 1.7 2.1 1.1 2.1 .9 1.4 1.9 .9 2.6 2.1 3.4 1.4 2.5 1.3 1.8 2.1 .9 3.6 1.9 40 1.7 2.3 .9 1.4 1.8 .8 3.5 2.0 2.7 2.0 2.4 1.2 1.3 1.9 1.1 2.1 1.6 2.2 2.4 2.7 1.3 1.3 1.9 .9 1.6 1.4 2.1 2.3 2.0 1.3 1.0 1.8 .7 2.2 1.7 1.9 2.1 2.0 1.6 1.2 8.3 .8 2.2 2.2 1.7 2.8 3.4 1.4 1.3 4.4 .7 1.3 1.8 1.4 3.1 1.9 1.3 .9 2.0 .7 1.3 1.3 1.7 3.2 1.5 1.1 .9 1.7 .5 1.7 1.3 1.5 1.9 1.6 .9 .9 1.7 .5 3,6 2.2 1.8 1.0 2.0 1.0 1.3 2.0 .7 2.8 2.1 2.2 1.7 2.9 1.7 1.4 3.5 .9 3.1 2.1 2.4 3.0 3.1 1.9 1.6 3.6 1.0 1.9 1.8 3.6 10.6 5.8 2.4 1.7 2.0 2.4 2.0 2.0 2.0 2.4 3.2 3.2 1.6 2.7 5.2 1.0 1.7 1.1 1.6 2.8 8.4 1.1 1.7 1.1 2.4 4.4 5.6 1.6 2.6 1.5 2.8 4.7 9.8 1.9 4.0 1.3 2.7 5.0 15.7 1.6 2.6 1.3 2.6 5.4 9.3 1.2 2.6 1.2 2.2 4.5 2.5 1.2 2.2 1.2 1.6 3.1 1.0 1.0 1.7 .9 1.9 3.2 1.1 1.2 2.9 .9 1.4 2.4 1.3 .8 2.1 .7 1.7 2.7 1.6 .9 2.9 .8 1.9 3.1 4.5 1.0 3.2 .8 1.6 2.6 8.3 1.2 2.1 .8 2.2 3.7 4.6 1.3 3.1 1.1 2.2 3.6 4.5 1.5 3.2 1.2 1.0 .6 .8 .5 1.2 .7 1.3 .8 1.2 1.1 1.1 .8 1.1 .8 .9 .7 .7 .8 .8 1.0 .9 1.2 .8 .7 .9 .6 1.0 .9 .9 .9 2.2 Nondurable goods_________ __________ Food and kindred products. . . . ___ Tobacco manufactures_________ ____ Textile mill products........ .................... Apparel and related products________ Paper and allied products___________ Printing, publishing and allied Industries................................. ................... Chemicals and allied products_______ Petroleum refining and related Industries............................... ...................... Rubber and miscellaneous plastic products........................................... Leather and leather products________ .6 .9 .8 .9 1.0 .6 .7 .6 .5 .3 .5 .5 .7 ,6 .6 1.5 2.0 1.2 1.6 1.8 2.5 1.6 3.4 1.9 2.0 1.6 2.3 1.5 2.0 1.4 1.6 1.9 1.9 1.0 1.1 .9 2.1 1.2 2.6 1.4 1.7 1.7 2.3 2.2 2.1 N onmanufacturing: Metal mining____ ______ ___________ Coalmining................ ............................... 1.2 2.0 .9 1.3 1.4 1.4 4.2 1.1 2.3 2.2 1.8 1.7 3.0 1.0 2.4 1.4 1.2 4.2 1.4 2.6 .7 3.7 .4 1.0 .6 .9 1.4 1.7 1.6 2.9 1 Beginning with the December 1961 issue, figures differ from those pre viously published. The industry structure has been converted to the 1957 Standard Industrial Classification, and the printing and publishing industry and some seasonal manufacturing industries previously excluded are now included. Data Include Alaska and Hawaii beginning in January 1959; this inclusion has not significantly affected the labor turnover rates. Month-to-month changes in total employment in manufacturing and non manufacturing industries as indicated by labor turnover rates are not com parable with the changes shown by the Bureau’s employment series for the following reasons: (1) the labor turnover series measures changes during the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis calendar month, while the employment series measures changes from mid month to midmonth; and (2) the turnover series excludes personnel changes caused by strikes, but the employment series reflects the influence of such stoppages. 2 Preliminary. * Beginning with January 1959, transfers between establishments of the same firm are included in total accessions and total separations; therefore, rates for these Items are not strictly comparable with prior data. Transfers comprise part of “ other accessions” and “ other separations,” the rates for which are not shown separately. MONTHLY LABOR REVIEW, JUNE 1963 742 C.—Earnings and Hours T a b l e C - l . Gross hours and earnings of production workers,1 b y industry Annual average 1962 1963 Industry Mar.s Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Minin? M etal mining_____________________ Iron ores............................................ Copper ores....... ...................... ........ $111.10 $112.88 $112. 34 $112.07 118.66 117.26 116.16 116.67 117.35 116.05 118.95 115.36 125. 99 121. 69 121.12 121.41 $110.43 $111. 78 $112.88 $111.90 $110.02 $111.10 $109.61 $110. 70 $110.84 $107.18 $105.44 116. 44 116.16 118.12 116.00 116. 88 118.86 119.28 118. 01 118.29 113.44 111.19 119. 56 117.87 122. 61 119.87 124.43 127. 51 126.28 125. 86 122.28 115. 80 114. 73 120.13 119.14 120.98 117.99 117.46 121.24 120.40 119.84 124. 52 119.03 116. 77 Coal mining............................................. 113. 93 122.46 121.29 119. 57 111. 24 114.39 113.62 113.15 102.30 115. 69 108.15 116.12 117. 69 111.34 110. 76 Bituminous..................................... 114.35 123.56 121.76 120. 71 111. 65 115.13 114.39 114.25 103.60 117.06 109.47 117. 50 118. 76 112.73 112.77 Crude petroleum and natural gas......... 110.66 110. 51 110.51 112.04 109.30 109.20 110.99 109.56 110.83 107.74 108.52 109.20 108. 52 105. 75 103.32 Crude petroleum and natural gas fields__ ______ ___ ___________ 117. 56 117.33 120.38 118.28 114.37 113. 00 118.69 113.98 118.14 112. 72 112.31 114.37 112. 84 113.15 108.54 Oil and gas field services................ 104.25 103.76 100. 67 105. 71 104.40 105.90 103.82 104.84 103. 82 102.67 105.03 104.35 104.84 98.67 98.31 99.64 100.09 96.58 117. 71 108.83 118.48 113.40 125.11 123.08 112. 67 103.72 114. 77 110.00 119.60 118.11 Manufacturing........................................... . 98.09 97.20 97.44 98.42 97.36 96.72 97.68 95.75 96.80 97.27 96. 80 96. 56 95.91 92.34 Durable goods. ................................ 106.49 106.23 105.82 107.53 106.19 105.37 105.88 103.89 104.45 105.47 105.22 105.22 104. 45 100.10 Nondurable goods______________ 87.07 86.24 86.24 86. 94 86.72 85.72 86.80 86.18 86.80 87.02 86.37 85. 54 85.32 82.92 89.72 97.44 80.36 Quarrying and nonmetallic mining___ 102.00 Contract construction................. .................. General building contractors_________ Heavy construction________________ Highway and street construction... Other heavy construction________ Special trade contractors____________ 121.97 113. 67 115.94 109. 98 121.66 129.60 98.77 100.14 117.29 108. 85 108.12 99.64 116.49 125.24 120.01 111.11 113.54 107.16 120.05 128.13 98.66 107.21 110.86 113.24 113.01 110.66 107.62 107.38 102.93 117.97 108. 55 109. 20 104. 24 115.63 127. 41 120. 88 113. 34 117. 61 115.02 121.13 127.45 126.82 117.12 127.20 126. 58 128. 86 133.16 128.21 117.81 129.38 128.62 129.68 134.23 127.26 116.92 130.50 129. 65 131.04 132.38 125. 57 115.92 127. 67 126. 44 128. 54 131.65 121.45 111.91 122.13 119.13 126.48 127.72 123. 44 114.14 124. 07 120. 70 128. 86 129.46 120.01 112.10 116.33 110. 09 124. 09 126.34 118. 05 109. 55 114.36 105.76 122.80 123.90 Average weekly hours 40.4 41.2 38.1 43.9 40.9 41.0 37.8 43.0 41.0 40.9 39.0 42.8 40.9 40.9 37.7 42.9 40.9 41.0 39.2 42.6 41.4 40.9 38.9 42.1 41.5 41.3 40.2 42.3 41.6 40.7 39.3 41.4 36.4 36.3 39.0 39.1 39.0 38.9 38.2 38.2 36.0 35.9 36.9 36.9 36.3 36.2 36.5 36.5 Crude petroleum and natural gas.......... Crude petroleum and natural gas fields............................................. Oil and gas field services.................. 41.6 41.7 41.7 42.6 42.2 42.0 42.2 42.3 40.4 42.9 40.6 42.7 41.8 41.6 41.5 43.5 40.7 43.5 40.5 43.4 41.5 42.9 41.0 43.5 Mining_______________ _____ ________ Metal mining........................................... Iron ores........................................... Copper ores.............................. ...... C o a l m in i n g Bituminous____ 41.3 42.0 41.4 43.3 40.9 42.0 41.0 43.0 41.0 41.7 40.6 42.8 40.9 41.8 39.7 44.0 40.6 41.4 38.6 43.6 40.4 41.8 39.7 44.4 37.2 37.4 35.0 35.2 37.1 37.3 37.6 37.7 35.8 35.9 35.5 35.8 42.3 41.6 41.9 42.0 41.9 41.8 42.0 41.6 42.9 40.4 42.6 40.4 43.4 40.7 43.3 40.3 43.5 40.7 42.9 40.5 43.5 40.9 41.3 40.4 41.8 Quarrying and nonmetallic mining....... 42.5 41.5 41.9 40.6 44.3 46.0 46.6 46.7 46.3 45.6 45.5 43.8 42.4 43.9 43.7 Contract construction__________________ General building contractors............. . Heavy construction________________ Highway and street construction... Other heavy construction________ Special trade contractors____________ 36.3 35.3 39.3 39.0 39.5 35.9 34.7 33.7 36. £ 36.1 37.7 34.5 35.4 34.4 38.1 37.6 38.6 35.2 34.8 33.4 36.4 35.7 37.3 35.1 36.3 35.2 39.6 39.8 39.2 35.6 38.2 36.6 42.4 43.2 41.3 37.3 38.5 36.7 42.7 43.6 41.3 37.6 38.8 37. C 43.5 44.4 42.0 37.5 38.4 36.8 42.7 43.6 41.2 37.4 37.6 36.1 41.4 41.8 40.8 36.7 38.1 36.7 42.2 42.8 41.3 37.2 36.7 35.7 39.3 38.9 39.9 36.2 36.1 35. C 39.3 38. e 40. C 35.5 36.9 35.8 40.3 40.5 40.1 36.2 36.7 35.4 40.7 41.2 40.0 35.9 Manufacturing.............................. ................ Durable goods................................. Nondurable goods........... ................ 40.2 40.8 39.4 40.0 40.7 39.2 40.1 40.7 39.2 40.5 41.2 39.7 40.4 41.0 39.6 40.3 41.0 39.5 40.7 41.2 40.0 40.4 40.9 39.9 40.5 40.8 40.0 40.7 41.2 40.1 40.5 41.1 39.8 40.4 41.1 39.6 40.3 40.$ 39.5 39.8 40.2 39.3 39.7 40.1 39.2 $2. 69 2.83 3.0$ 2.80 $2.68 2. 84 3. 08 2.80 $2.70 2.83 3.1C 2.80 $2. 71 2.83 3.0$ 2.83 3.11 3.13 3.09 3.11 3.13 3.15 3.13 3.15 Average hourly earnings Mining............................................................ Metal mining____________ _________ Iron ores.......... .............. ................. Copper ores................................... $2.75 2.88 3.08 2.87 $2.76 2.86 3.07 2.83 $2.74 2.84 3.05 2.83 $2.74 2.85 3.06 2.83 $2. 70 2.84 3.05 2.82 $2.70 2. 84 3.03 2.83 $2.72 2.86 3.05 2.86 $2. 69 2.85 3.05 2.85 Coalmining. .... . Bituminous___________________ 3.13 3.15 3.14 3.16 3.11 3.13 3.13 3.16 3.09 3.11 3.10 3.12 3.13 3.16 3.10 3.13 Crude petroleum and natural gas_____ Crude petroleum and natural gas fields_______________________ Oil and gas field services. 2.66 2.65 2.65 2.63 2.59 2.60 2.63 2. 59 2. 62 2. 59 2.59 2.60 2.59 2.53 2.46 2.91 2.43 2.8E 2.48 2.88 2.42 2.85 2.43 2. 81 2.40 2.7S 2.44 2. 86 2.42 2.78 2.41 2.84 2.42 2. 76 2.41 2.7$ 2.42 2. 81 2.41 2.8C 2.41 2.78 2.30 2.68 2.26 $2.69 2. 82 3.08 2.81 $2.64 $2.61 2.74 2.66 3. 0C 2. 89 2.73 2.63 3.11 3.14 3.12 3.15 Quarrying and nonmetallic mining___ 2.40 2.38 2.39 2.43 2.42 2.41 2.43 2.42 2.39 2.36 2.36 2.35 2.35 2.28 2.21 Contract construction______ _______ ____ General building contractors Heavy construction................... ............ Highway and street construction... Other heavy construction................ Special trade contractors _ __ _ 3.36 3.22 2.95 2.82 3.08 3.61 3.38 3.28 2.98 2.76 3.0E 3.63 3.39 3.28 2.98 2.85 3.11 3.64 3.39 3.25 3.00 2.92 3.10 3.63 3.33 3.22 2.97 2.8S 3. OS 3.58 3.32 3.2C 3.0C 2.93 3.12 3.57 3.33 3. 21 3.03 2.95 3.14 3.57 3.28 3.16 3.00 2.92 3.12 3.53 3.27 3.15 2.9S 2.9C 3.12 3.52 3.23 3.1C 2.95 2. 85 3.1C 3.48 3.24 3.11 2.94 2. 82 3.12 3.48 3.27 3.14 2.96 2. 83 3.11 3. 49 3.27 3.13 2.91 2. 74 3. 07 3.49 3.19 3.04 2.94 2.80 3.12 3.40 3.07 2.93 2.82 2.67 2.99 3.29 Manufacturing............................................... Durable goods.................................. Nondurable goods........................... 2.44 2.61 2.21 2.43 2.61 2.20 2.43 2. 6C 2.20 2.43 2.61 2.19 2. 41 2. 59 2.19 2.40 2.57 2.17 2.40 2. 57 2.17 2.37 2.54 2.16 2.39 2. 56 2.17 2.39 2. 56 2.17 2.39 2. 56 2.17 2.39 2.56 2.16 2.38 2.56 2.16 2.32 2.49 2.11 2.26 2.43 2.06 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 743 C.—EARNINGS AND HOURS T able C - l . Gross hours and earnings of production workers,1 b y industry— C ontinued Anim al ave rage 1962 1963 Industry M ar.1 Feb. Jan. Dec. Nov. Sept. Oct. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Manufacturing—Continued Durable goods Ordnance and accessories___________ Ammunition except for small arms________________________ Sighting and fire control equip ment________________________ Other ordnance and accessories....... Lumber and wood products, except furniture________________________ Sawmills and planing mills............. Millwork, plywood, and related products___________________ _ Wooden containers........ ................. Miscellaneous wood products____ $119.19 $120.35 $120.64 $120.96 $118. 69 $117.01 $117.01 $115.34 $115.18 $116.88 $117.16 $118.43 $117.31 $113.42 $108.67 117.86 119.31 119.02 120.06 118.37 116.69 117.38 116.00 114. 97 116.00 116. 72 117.26 116.28 115.49 110.29 127.75 128.29 128.35 131.24 128. 87 125.58 125.40 122.78 122.36 126. 48 126.60 129. 60 129.33 117.27 113.10 116.18 117. 59 117. 74 116.06 113. 44 111. 79 112.06 110. 70 110. 70 112.19 111. 65 112.88 111.37 108.39 103.17 76.25 71.16 77. 03 70.80 76.83 70. 77 78.01 71.02 79.00 72.31 79. 60 72.98 82.01 75.30 81.80 74.48 80.40 73.75 80.40 73.60 79. 59 73.12 77. 82 70.59 75.08 68. 92 77. 03 68.99 73.71 67. 20 87.12 64. 78 72.72 86. 48 64.91 72.90 86.48 64.02 73.08 87.53 64.12 72.80 86.90 65. 76 73. 71 86.48 67. 06 73. 44 88.81 68. 21 74.62 88.82 68.30 73.49 87.12 68.71 72.00 87. 56 67.89 73.49 88. 81 67. 73 72.85 87.13 66.90 72. 62 85. 88 65. 44 71.91 84.03 63.12 69. 77 81.19 62.17 69.32 81.58 80.16 81.34 81. 54 80. 54 78.18 79. 95 78.38 78. 76 78. 76 76.21 78. 02 76.63 77.38 77.15 75.99 73.38 74. 85 73. 75 74.30 74. 30 71.46 95.40 91.77 91.39 92. 57 92.34 92. 52 93. 61 92.80 92. 57 92.84 90.54 99. 04 100. 65 107.01 107.87 108.38 105.16 106. 01 104.17 100. 85 101.75 100. 53 82.21 81.20 81.61 82.41 81.79 80.39 83.43 81.20 81.00 80.39 80.20 75.20 70.45 90.42 96. 72 78.78 Furniture and fixtures______________ 79.00 78. 79 78. 60 75.17 74. 96 74.19 Household furniture____________ 92.92 92.29 94.07 Office furniture________________ Partitions, office and store fixtures. 100. 95 100.58 101.85 80.17 81.18 80.99 Other furniture and fixtures....... . Average weekly hours Ordnance and accessories-----------------Ammunition except for small arms. Sighting and fire control equip ment________________________ Other ordnance and accessories___ 41.1 40.5 41.5 41.0 41.6 40.9 42.0 41.4 41.5 41.1 41.2 40.8 41.2 40.9 40.9 40.7 40.7 40.2 41.3 40.7 41.4 41.1 41.7 41.0 41.6 40.8 40.8 41.1 40.7 41.0 42.3 41.2 42.2 41.7 42.5 41.9 43.6 41.6 43.1 41.1 42.0 41.1 41.8 41.2 41.2 41.0 41.2 41.0 42.3 41.4 42.2 41.2 43.2 41.5 43.4 41.4 40.3 40.9 41.0 40.3 Lumber and wood products except furniture....................................... ........ Sawmills and planing mills............. Millwork, plywood, and related products......................................... Wooden containers_____________ Miscellaneous wood products------- 39.1 39.1 39.3 38.9 39.2 39.1 39.2 38.6 39.5 39.3 40.0 40.1 40.8 40.7 40.9 40.7 40.4 40.3 40.4 40.0 40.4 40.4 39.5 39.0 38.9 38.5 39.5 39.2 39.0 39.3 40.9 39. 5 40.4 40.6 39.1 40.5 40.6 38.8 40.6 40.9 39.1 40.0 40.8 40.1 40.5 40.6 40.4 40.8 41.5 40.6 41.0 41.7 40.9 40.6 40.9 40.9 40.0 41.3 40.9 40.6 41.5 40.8 40.7 41.1 40.3 40.8 40.7 39.9 40. 4 40.4 39.7 40.1 39.8 39.6 40.3 Furniture and fixtures............................ Household fu rn itu re..---------------Office furniture________________ Partitions, office and store fixtures. Other furniture and fixtures............ 40.1 40.2 40.4 39. 9 39.3 40.2 40.3 40.3 39.6 39.6 40.1 40.1 40.9 40.1 39.7 41.2 41.5 41.3 39.3 40.3 40.9 41.2 39.9 40.1 40.2 41.5 41.6 40.8 41.8 40.4 41.6 41.7 40.6 42.3 41.0 41.3 41.3 40.5 42.5 41.1 40.3 40.1 40.4 41.4 40.6 41.0 40.9 40.7 41.9 41.3 40.4 40.3 40.7 41.5 40.2 40.6 40.6 40.6 40.5 40.1 40.6 40.6 40.9 40.7 39.6 39.9 39.7 40. 6 40.7 40.3 40.0 39.8 41.1 40.3 40.4 Average hourly earnings Ordnance and accessories-----------------Ammunition except for small arms. Sighting and fire control equip ment________________________ Other ordnance and accessories___ $2.90 2. 91 $2.90 2. 91 $2.90 2.91 $2.88 2.90 $2.86 2.88 $2. 84 2.86 $2.84 2.87 $2.82 2.85 $2. 83 2.86 $2.83 2.85 $2.83 2.84 $2.84 2.86 $2. 82 2.85 $2.78 2.81 $2. 67 2.69 3.02 2.82 3.04 2.82 3.02 2.81 3.01 2.79 2.99 2.76 2.99 2.72 3.00 2. 72 2.98 2. 70 2.97 2. 70 2.99 2.71 3.00 2.71 3. 00 2.72 2.98 2. 69 2.91 2.65 2.76 2.56 Lumber and wood products except furniture................. ............................. Sawmills and planing mills............. Millwork, plywood, and related products____________________ Wooden containers_____________ Miscellaneous wood products------- 1.95 1.82 1.96 1.82 1.96 1.81 1.99 1.84 2.00 1.84 1.99 1.82 2.01 1.85 2.00 1.83 1.99 1.82 1.99 1.84 1.97 1.81 1.97 1.81 1.93 1. 79 1.95 1.76 1.89 1.71 2.13 1.64 1.80 2.13 1.66 1.80 2.13 1.65 1.80 2.14 1.64 1.82 2.13 1.64 1.82 2.13 1.66 1.80 2.14 1.68 1.82 2.13 1.67 1.81 2.13 1.68 1.80 2.12 1.66 1.81 2.14 1. 66 1.79 2.12 1.66 1. 78 2.11 1.64 1.78 2.08 1. 59 1.74 2.04 1.57 1.72 Furniture and fixtures............................ Household furniture____________ Office furniture________________ Partitions, office and store fixtures. Other furniture and fixtures______ 1. 97 1.87 2.30 2.53 2. 04 1.96 1.86 2.29 2. 54 2.05 1.96 1.85 2.30 2.54 2.04 1.98 1.88 2.31 2.52 2.04 1.96 1.86 2.30 2.51 2.02 1.96 1.86 2.24 2.56 2.02 1.96 1.85 2.28 2. 55 2.01 1.95 1.84 2.28 2.55 1.99 1.94 1.83 2.29 2.54 1.98 1.95 1.83 2.30 2.53 2.02 1.94 1.83 2.28 2.51 2.02 1.94 1.83 2.28 2.49 2.02 1.94 1.83 2.27 2.50 2.03 1.91 1.80 2.23 2.47 1.99 1.88 1.77 2.20 2.40 1.95 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 744 MONTHLY LABOR REVIEW, JUNE 1963 T able C - l . Gross hours and earnings of production w orkers,1 b y industry— Continued 1963 1962 Annual average Industry M ar.s Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Manufacturing—Continued Durable goods—Continued Stone, clay, and glass products............. $99.23 $97.36 $97.11 $97.84 $100.28 $100. 85 $101.50 $101.57 $100. 67 $100.43 F lat glass.......................................... 127.16 127.92 129.26 130. 42 133.06 127.59 126.94 125.78 126.81 127.92 Olass and glassware, pressed or blown______________________ 100.40 100.40 100.15 99.14 99.14 98.49 97. 76 98.09 98.00 100. 37 Cement, hydraulic.......... ............... 112.87 111.63 112.16 111.50 115.21 114. 26 116. 62 115.93 117 GO 114.12 Structural clay products......... ....... 86.67 84. 56 85.41 85.81 86.90 87.56 87. 34 87. 97 87. 54 88.17 Pottery and related products........ . 89.70 88. 53 88.08 89.67 90.45 90. 68 89. 82 87.64 87.69 86. 85 Concrete, gypsum, and plaster products......................................... 98.83 93.93 94.40 95.60 102. 96 105.36 108.14 108. 66 105. 67 104. 28 Other stone and mineral products.. 100.28 100.04 98.15 99.14 99. 88 99. 55 99.80 100.12 100.60 99.87 Primary metal industries___________ Blast furnace and basic steel products____________________ Iron and steel foundries............ ..... Nonferrous smeltingand refining... Nonferrous rolling, drawing, and extruding___________________ Nonferrous foundries___________ Miscellaneous primary metal in dustries_____ ______________ _ $99. 60 $98.16 $95. 68 $95. 24 $92.97 125.02 120. 01 123.00 122.68 127.35 99.06 98.98 97. 93 95. 44 91.94 113. 85 n o 0 2 107. 46 106. 52 102. 87 88. 60 87. 54 85. 65 84. 45 82.21 85. 58 85.80 84. 85 82. 30 81.37 103. 60 99. 29 99. 64 99 05 93. 61 97.20 97.10 96.05 93.04 93.79 122.91 122.21 120.80 120.39 117. 91 116.92 118. 80 116.23 116.62 119.10 118.50 123.11 123.41 114.95 109. 59 131.27 129.89 128.44 126.68 123.39 122.42 125.00 122. 68 121. 77 110. 56 110.83 108. 54 109.88 107. 73 106. 52 107. 45 103. 34 106.90 117.03 116.05 116.20 117.04 116. 47 114. 52 116.47 116.03 114. 80 116.20 116.34 116.47 118.00 116.62 115. 09 116.05 113.98 115.35 104.70 105.63 105.88 105.73 103. 79 103.94 103.12 101.30 101.25 123. 71 124.68 132. 84 133. 90 122.92 116.13 109. 41 106. 90 106. 37 105. 85 98.81 96. 61 116.05 113.85 113.02 112. 48 109.48 108.09 118.80 115.90 117. 85 116.18 111.76 105.01 104.42 103. 73 104. 33 103.82 100. 35 97.51 126.68 128.02 130.09 128.94 125.14 123. 60 126.12 123.49 121.88 124.38 123.19 123. 79 125. 82 116. 98 112.92 Average weekly hours Stone, clay, and glass products............ . Flat glass......................................... . Glass and glassware, pressed or blown______________________ Cement, hydraulic_____________ Structural clay products.............. Pottery and related products........ . Concrete, gypsum, and plaster products...................................... . Other stone and mineral products.. Primary metal industries...... ................ Blast furnace and basic steel products____________________ IroD and steel foundries.................. Nonferrous smeltingand refining... Nonferrous rolling, drawing, and extruding___________________ Nonferrous foundries..__________ Miscellaneous primary metal in dustries____________ ________ 40.5 38.3 39.9 38.3 39.8 38.7 40.1 38.7 41.1 39.6 41.5 38.9 41.6 38.7 41.8 38.7 41.6 38.9 41.5 39.0 41.5 38.0 40.9 38.7 40.2 37.5 40.7 38.7 40.6 40.3 40.0 40.6 40.5 39.0 40.0 40.3 39.7 39.0 39.9 40.2 40.1 38.8 40.3 40.4 40.1 39.5 40.3 41.0 40.8 40.2 40.2 41.1 41.3 40.3 39.9 41.5 41.2 40.1 40.2 41.7 41.3 39.3 40.0 42.0 41.1 38.8 40.8 41.2 41.2 38.6 40.6 41.4 41.4 38.9 40.4 40.9 41.1 39.0 40.3 40.4 40.4 39.1 40.1 40.5 40.6 38.1 39.8 40.5 40.3 38.2 41.7 40.6 39.8 40.5 40.0 m io , o 39.9 40.3 42.9 40.6 43.9 40.8 44.5 40.9 44.9 41.2 44.4 41.4 44.0 41.1 43.9 41.2 42.4 41.1 40.7 40.5 42.4 40.7 42.1 40.8 40.7 40.6 40.4 40.4 39.7 39.5 40.0 39.4 39.4 40.1 39.9 40.9 41.0 39.5 39.0 39.9 41.1 41.5 39.6 41.2 41.3 39.4 40.5 41.5 39.1 41.0 41.8 38.2 40.5 41.3 37.9 40.5 40.9 38 7 40.7 41.3 38.1 39.9 41.0 37.7 40.8 41.0 38.3 41.6 41.3 38.6 40.8 41.1 40.6 40.6 40.8 40.7 40.4 40.9 38.9 38.9 40.7 38.2 38.8 41.1 42.1 40.9 42.0 41.1 42.2 41.2 42.6 41.3 42.1 40.7 41.7 40.6 42.2 40.6 41.6 40.2 42.1 40.5 43.2 41.6 42.3 41.0 42.7 41.4 42.4 41.2 41.7 40.3 40.7 39.8 41.4 41.7 42.1 42.0 41.3 41.2 41.9 41.3 40.9 41.6 41.2 41.4 41.8 40.2 39.9 Average hourly earnings Stone, clay, and glass products............ . I $ 2 .45 Flat glass............................... .......... 3.32 Glass and glassware, pressed or blown______________________ _ 2. 51 Cement, h y d rau lic........................ 2.78 Structural clay products_________ 2.14 Pottery and related products.......... 2.30 Concrete, gypsum, and plaster products......................................... 2.37 Other stone and mineral products... 2.47 Primary metal industries...................... Blast furnace and baslo steel products............................. ........... Iron and steel foundries_________ Nonferrous smeltingand refining... Nonferrous rolling, drawing, and extruding..._________________ Nonferrous foundries____________ Miscellaneous primary metal In dustries........................................... See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $2.44 3.34 $2. 44 3.34 $2. 44 3.37 $2.44 3.36 $2. 43 3.28 $2.44 3.28 $2.43 3.25 $2.42 3.26 $2.42 3.28 $2.40 3.29 $2. 40 3.27 $2.38 3.28 $2.34 3.17 $2.29 3.16 2. 51 2. 77 2.13 2.27 2. 51 2.79 2.13 2.27 2. 46 2.76 2.14 2.27 2.46 2.81 2.13 2.25 2.45 2.78 2.12 2.25 2.45 2.81 2.12 2.24 2.44 2. 78 2.13 2.23 2.45 2.80 2.13 2.26 2.46 2. 77 2.14 2. 25 2. 44 2. 75 2.14 2.20 2.45 2.69 2.13 2.20 2. 43 2.66 2.12 2.17 2.38 2. 63 2.08 2.16 2.31 2.54 2.04 2.13 2.36 2.47 2.36 2.46 2.39 2.46 2.40 2.46 2.40 2.44 2.43 2.44 2.42 2.43 2.38 2.43 2.37 2.43 2.36 2.41 2. 35 2.41 2.30 2.40 2.29 2.36 2.21 2.31 3.02 3.01 2.99 2.98 2.97 2.96 2.97 2.95 2.96 2.97 2.97 3.01 3.01 2.91 2.81 3.29 2.69 2.82 3.28 2.69 2.81 3.26 2.68 2.80 3.24 2.68 2.80 2.23 2. 66 2.82 3.23 2.63 2.80 3.23 2. 64 2.82 3.22 2. 59 2.83 3.23 2. 62 2.80 3.23 2. 63 2.81 3.23 2.62 2.77 3.28 2.62 2.77 3.29 2.62 2. 75 3.16 2.54 2.69 3.04 2.49 2.63 2.76 2.56 2.77 2.57 2. 76 2.57 2.77 2.66 2.77 2. 55 2.76 2.56 2.75 2.54 2.74 2. 52 2.74 2.50 2. 75 2. 51 2.74 2.53 2. 76 2.52 2. 74 2. 52 2.68 2.49 2.58 2.45 3.06 3.07 3.09 3.07 3.03 3.00 3.01 2.99 2.98 2.99 2.99 2.99 3.01 2.91 2.83 745 0.—EARNINGS AND HOURS T a b l e C - l . Gross hours and earnings of production w orkers,1 b y industry— C ontinued Mar.2 Manufacturing—Continued Durable goods—Continued Fabricated metal products__________ Metal cans____________________ Cutlery, handtools, and general hardware___________________ Heating equipment and plumbing fixtures.......................................... . Fabricated structural metal prod ucts..................................... ......... . Screw machine products, bolts, etc. Metal stampings_______________ Coating, engraving, and allied services_____________________ Miscellaneous fabricated wire prod ucts............... ............................... . Miscellaneous fabricated metal products____________________ Machinery___ _______ ____________ Engines and turbines___________ Farm machinery and e q u ip m e n tconstruction and related machinery. Metalworking machinery and equipment__________________ Special industry machinery______ General industrial machinery____ Office, computing and accounting machines____________________ Service industry machines_______ » Miscellaneous machinery________ Fabricated metal products__________ Metal cans....................................... Cutlery, hand tools, and general hardware____________________ Heating equipment and plumbing fixtures_____________________ Fabricated structural metal prod ucts............................................ Screw machine products, bolts, etc. Metal stampings.............................. Coating, engraving, and allied services_____________________ Miscellaneous fabricated wire products____________________ Miscellaneous fabricated metal products____________________ Machinery__ _______________ ____ Engines and turbines..................... . Farm machinery and equipment_ Construction and related machinery.. Metalworking machinery and equipment__________________ Special industrial machinery_____ General industrial machinery____ Office, computing, and accounting machines____________________ Service industry machines_______ Miscellaneous machinery________ Fabricated metal products__________ Metal cans____________________ Cutlery, hand tools, and general hardware____________________ Heating equipment and plumbing fixtures_____________________ Fabricated structural metal prod ucts................. ................... ........... Screw machine products, bolts, etc. Metal stampings_______________ Coating, engraving, and allied services______ ______________ Miscellaneous fabricated wire products_________ __________ Miscellaneous fabricated metal products____________________ Machinery_____ __________________ Engines and turbines___________ Farm machinery and equipment... Construction and related machinery. Metalworking machinery and equipment__________________ Special industry machinery______ General industrial machinery____ Office, computing, and accounting machines_______ ____________ Service industry machines_______ Miscellaneous machinery________ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Feb. Annual average 1962 1963 Industry Jan. Dec. j Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings $105.67 $105.26 $105. 78 $106.30 $105. 63 $105. 73 $106. 66 $105.32 $104. 30 $106. 75 $105.73 $104.39 $103.48 $100.85 $98.82 121.88 120. 88 122.29 122. 48 119.99 123.26 133.11 131.50 133.15 131.67 127.02 125.28 122.54 121.80 114. 68 102.00 101. 59 102.84 103.50 103.34 101.27 100.37 99.10 98.31 98.80 98.21 96.88 98.80 100.94 101.34 100.69 97.53 101.43 100. 70 98.09 96.08 93.93 93.03 97.27 96.14 96.62 94. 56 91.26 98.65 100. 78 104. 52 104.26 103.86 105.04 104. 75 106.19 107.38 107.49 105.37 106.40 105.37 105. 01 103.31 102.47 99. 47 106. 43 107.19 108.46 108.89 106.09 104. 75 107. 60 105.00 104. 75 105.58 105.33 105.65 106.32 98. 90 95. 58 113.15 112.74 113.01 113. 40 113.13 112. 56 112. 56 111. 45 109. 21 111.72 113.25 110. 92 110.24 105.01 107. 74 94.53 91.53 92.39 93.98 92.70 93.79 92. 55 90.94 91.62 95.57 94.02 95. 49 93.94 90.32 86.43 97.34 97.34 98.06 97.70 96.17 96.64 97.29 96.64 95.94 98.65 97.53 97.11 97. 53 94.48 90.50 104.86 115. 51 123. 82 113.71 113.44 103. 83 114.82 122.70 113. 58 113.44 104.49 113.98 120.58 112.07 112.75 105.41 114. 26 121.99 110. 84 112. 48 104.75 112. 75 120.80 108.94 111. 66 105. 41 112.61 120.80 108. 81 112. 75 105.67 112. 74 120. 80 107.87 112. 61 102. 51 112.32 119. 69 107. 33 112.88 100.15 112. 59 115.34 106. 67 113.42 104.30 114.09 120. 77 107. 46 113.42 102.72 114.09 121.06 107. 45 113.42 102.82 113.67 120. 54 109. 03 111. 78 101. 50 112. 71 118.61 109.15 111.90 100.19 96.96 107.16 104. 55 114.11 109. 69 103 46 99.85 106.52 102. 66 129.49 128.33 126. 58 126. 44 123.25 122.26 123.12 123.12 125. 86 128. 04 128. 48 128. 62 127.02 116. 90 117.27 108. 88 107.94 108. 71 109.06 106.43 106.43 108.38 106. 01 106.43 108.46 108.03 106. 42 106.85 101.43 99. 72 111. 38 111. 38 110.84 112.06 111. 52 111.79 111.38 111. 24 111.37 112.86 112.17 111.49 109.21 105.04 101. 71 114.90 114.21 113.81 114.09 112.84 112.31 113.68 111.78 114. 96 112.06 111.78 111.78 112. 75 111.24 106.23 102. 56 100. 90 100. 50 100.35 100. 75 99.94 100.04 99. 55 102.01 103. 57 99.87 100.04 98. 58 95.84 93.43 110. 83 109.62 110.66 112.14 109.72 109.82 109.39 108.29 108. 45 108.29 108.63 108. 54 107. 44 104. 00 101. 26 Average weekly hours 40.9 40.5 40.5 41.3 41.1 41.3 40.9 41.7 41.5 41.3 41.0 41.2 41.1 40.8 40.8 41.9 41.4 42.0 42.2 41.4 43.5 43.4 43.6 41.5 43.8 40.9 41.1 40.4 40.9 40.7 40.8 40.8 41.3 41.4 41.5 41.0 40.8 40.2 40.3 41.4 41.1 40.7 40.2 39.8 40.1 40.1 40.8 39.7 39.4 39.6 39.4 39.0 40.2 42.7 41.6 40.5 40.7 40.7 40.6 40.5 41.6 39.8 39.8 40.0 39.6 40.0 40.7 40.7 40.6 40.2 41.9 41.6 40.1 42.2 41.6 40.1 42.7 41.7 40.4 42.7 42.0 40.6 42.1 41.9 41.0 41.9 42.0 41.3 42.7 42.0 41.5 42.0 41.9 41.0 41.9 40.6 41.4 42.4 42.0 41.0 42.3 42.1 40.7 42.6 41.7 41.1 40.5 40.7 41.4 41.2 41.5 41.5 40.6 40.9 42.1 41.6 41.7 41.2 40.5 40.2 41.4 41.3 41.0 41.8 41.5 41.5 41.5 40.9 40.4 40.9 40.9 41.2 41.4 41.1 41.3 40.8 41.7 41.0 41.2 41.1 40.4 41.6 40.9 41.3 41.1 40.5 41.6 40.6 40.9 41.0 40.7 41.7 40.8 40.6 40.9 40.6 41.3 40.4 40.2 40.9 40.7 41.4 40.4 40.3 41.3 40.8 41.6 40.4 40.4 41.4 40.2 41.6 40.3 40.5 41.5 39.9 41.7 39.5 40.1 41.7 40.9 42.1 40.8 40.4 41.7 40.6 42.1 40.9 40.7 41.7 40.8 42.1 41.0 41.3 41.4 40.6 41.9 40.9 41.5 41.6 40.4 40.9 39.9 40.1 40.5 39.9 41.0 39.6 40.1 40.1 43.6 42.2 40.8 43.5 42.0 40.8 43.2 42.3 40.9 43.3 42.6 41.2 42.5 41.9 41.0 42.6 41.9 41.1 42.9 42.5 41.1 42.9 41.9 41.2 43.4 41.9 41.4 44.0 42.7 41.8 44.0 42.7 41.7 44.2 42.4 41.6 43.8 42.4 40.6 41.9 41.4 40.4 42.8 41.9 40.2 40.6 40.7 42.3 40.5 40.2 42.0 40.5 40.2 42.4 40.6 40.3 42.8 40.3 40.3 42.2 40.6 42.1 42.3 40.5 41.1 42.6 40.5 41.0 42.4 41.0 40.4 42.3 41.2 40.1 41.6 40.7 40.1 41.5 $2. 59 2.98 $2. 58 2. 97 $2.58 2.99 $2.58 2.98 $2. 57 2.97 41.5 40.5 40.6 40.4 40.8 41.3 40.5 40.3 42.4 42.3 42.2 42.4 Average hourly earnings $2. 56 $2. 57 $2. 55 $2.55 3.03 3.04 2. 97 3.06 $2. 56 3.02 $2.56 3.01 $2. 54 2. 99 $2.53 2. 96 $2.49 2.90 $2.44 2.77 2.50 2.49 2.49 2.50 2.49 2.42 2.45 2. 45 2.41 2.39 2.36 2.32 2.44 2.44 2.40 2.34 2.53 2.43 2.58 2.45 2. 36 2.59 2.47 2.46 2.41 2.49 2.47 2.47 2.48 2.47 2.48 2.49 2.48 2.46 2.47 2.45 2.60 2. 54 2.72 2.60 2.54 2.71 2.59 2.54 2.71 2.60 2. 55 2.70 2.58 2.52 2.70 2. 59 2.50 2.68 2.60 2. 52 2.68 2. 59 2. 50 2.66 2. 57 2. 50 2. 69 2.57 2. 49 2.66 2.57 2. 49 2.69 2. 58 2.48 2.66 2.57 2.49 2.65 2.30 2.26 2.27 2.27 2. 25 2.26 2.23 2.24 2.24 2.27 2.26 2 29 2.28 2.23 2.15 2.34 2.34 2.36 2.35 2.34 2.35 2.31 2.24 2.38 2.38 2.38 2.36 2.34 2.34 2.35 2. 57 2.77 3.02 2. 76 2.76 2.57 2.76 3.00 2.75 2.76 2.58 2.74 2.97 2.74 2.75 2.59 2.74 2.99 2.73 2.75 2.58 2.73 2.99 2.71 2.73 2. 59 2. 72 2. 99 2.70 2.73 2.59 2.71 2. 99 2.67 2.72 2.55 2.70 2.97 2.65 2. 72 2. 51 2.70 2.92 2.66 2.72 2.55 2. 71 2.96 2.66 2.72 2.53 2.71 2. 96 2. 64 2.72 2.52 2.70 2. 94 2.64 2.70 2.50 2.69 2. 90 2.63 2.69 2.48 2. 62 2. 86 2. 58 2.63 2. 43 2. 55 2. 77 2. 49 2.56 2.97 2.58 2.73 2.95 2. 57 2.73 2.93 2.57 2. 71 2.92 2. 56 2.72 2.90 2.54 2.72 2. 87 2.54 2.72 2.87 2.55 2. 71 2. 87 2.53 2. 70 2.90 2. 54 2.69 2.91 2.54 2.70 2.92 2.53 2.69 2.91 2.51 2.68 2.90 2. 52 2.69 2.79 2. 45 2.60 2.74 2.38 2.53 2.83 2.52 2.62 2.82 2.51 2.61 2.81 2. 50 2. 61 2.81 2.49 2.62 2.80 2.50 2.60 2.78 2.48 2.59 2.80 2. 47 2.58 2.76 2. 44 2. 56 2. 77 2.47 2.57 2.76 2.46 2. 56 2. 76 2. 43 2. 55 2.76 2. 44 2.56 2. 75 2. 44 2.54 2.70 2.39 2.50 2.61 2. 33 2.44 746 MONTHLY LABOR REVIEW, JUNE 1963 T able C -l. Gross hours and earnings of production workers,1 by industry—Continued 1963 1962 Annual average Industry Mar.2 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. $98.16 104. 81 104. 33 105.15 $97.68 102. 72 103. 57 103. 72 $97.44 $96.39 $94. 47 $90.74 100. 50 99.70 101.00 97. 77 103. 32 101. 59 99.38 95.44 104.38 102.66 101.30 96.23 Mar. 1961 1960 Average weekly earnings Manufacturing—Continued Durable goods— Continued Electrical equipment and supplies........ Electric distribution equipment__ Electrical industrial apparatus___ Household appliances___________ Electric lighting and wiring equipm ent__________________ _____ Radio and TV receiving sets_____ Communication equipment______ Electronic components and accèssories_____ _ . . ______ _____ Miscellaneous electrical equipment and supplies.................................. $97.84 104.78 103.12 107.71 Transportation equipment__________ Motor vehicles and equipment___ Aircraft and parts___ _______ . Ship and boat building and repairing__ _ . _____ 1________ Railroad equipment____________ Other transportation equipm ent... 123.85 123. 55 124. 74 129.73 128. 27 126.10 124. 49 119.19 121.93 121.09 121. 96 119. 97 118.69 128. 71 127.38 129. 63 138. 40 137.33 132. 24 131.02 121. 47 127.25 125.38 128.01 124. 66 121. 06 120.89 121. 76 122.64 123.94 123.09 122.80 120.38 119.11 118. 40 118. 56 118.14 118. 71 118. 58 119. 66 118.15 118.20 119.02 115. 49 116.06 116.35 118. 49 116.28 114. 74 113. 68 111.72 112.16 122.18 115. 44 118.48 115.15 114. 07 115. 63 118. 89 119. 99 118. 60 121.99 122. 70 120. 99 119.29 89.13 87.38 85.46 86. 51 83.85 88.07 88.78 89.01 86.24 89.24 87.33 87.91 82.18 $98.33 104. 25 104. 81 104.92 $97.93 102.91 103.48 104.14 $99.96 107.12 103.35 108.36 $98. 66 104. 75 103. 65 105.41 $98. 49 104.6C 103.07 105.67 $99.22 105. 22 103.98 105. 67 $97.20 102. 97 102. 41 106.08 $96. 72 103. 94 102.16 105.04 90. 52 90.29 90. 52 92.52 92.52 91.66 93.25 90.68 89.95 91.30 90. 45 90.68 89.02 87. 91 85. 97 86. 63 85.75 87.34 85. 67 87.64 89.76 87. 67 85. 75 87. 89 84.32 85.72 83.46 82.50 105.04 106.49 106.86 108.05 106.86 107.12 107.90 105.26 103. 94 105.47 106.66 106. 40 105.98 102.31 83.3S 82. 56 82.37 83.20 82. 80 82.40 83.02 81.39 80.58 83.03 84. 71 80.11 98.82 102.14 106.19 108. 94 110.30 107.33 108. 26 105.98 100.35 105. 41 105. 92 105.41 104.08 102.09 93.93 96.32 113.81 111. 52 115.09 115.21 115.09 110.43 110. 92 103.7S 108.39 107.86 83.71 80.13 Average weekly hours Electrical equipment and supplies........ Electric distribution equipment__ Electrical industrial apparatus___ Household appliances... ________ Electric lighting and wiring equipment_______________ . . . Radio and TV receiving sets_____ Communication equipment___ Electronic components and accèssories_____ . . . . . ___ Miscellaneous electrical equipment and supplies____ ___________ _ Transportation equipment__________ Motor vehicles and equipment Aircraft and parts__ . _____ Ship and boat building and repairing_______ _____ Railroad equipment___ _____ Other transportation equipment__ 40.1 40 3 40.8 40.8 40.3 40.4 41.1 40.2 40.3 40.2 40.9 39.9 40.8 41.2 40.7 41.2 40.6 40.6 40.8 40.7 40.7 40.7 40.9 40.8 41.0 41.1 41.1 40.8 40.5 40.7 40.8 40.8 40.3 40.6 40.7 40.4 40.9 41.1 41.4 40.6 40.7 40.6 41.1 40.2 40.6 40.2 41.0 40.3 40.5 40.2 40.8 40.1 40.2 40.4 40.4 40.2 f 39.8 40.4 40.1 39.6 39.7 38.9 40.4 39.6 39.2 40.8 39.7 38.8 41.1 40.4 39.7 41.4 40.4 39.3 41.1 40.2 40.2 41.2 40.9 40.8 41.5 40.3 40.4 40.8 39.8 39.7 40.6 40.4 40.5 41.2 40.2 39.4 41.5 40.3 39.5 41.5 40.1 39.0 41. 4 39.6 39.1 40.6 39.4 38.7 40.5 39.9 39.5 39.6 40.0 40.0 40.0 40.3 39.7 39.5 40. 5 40.4 40.3 40.2 40.2 39.5 39.9 41.0 41.9 42.1 41.6 41.8 41.4 40.3 41.5 41.7 41.5 41.3 41.0 39.8 39.8 41.7 42.2 41.4 41.6 41.9 41.7 42.0 42.5 42.0 43.1 44.5 42.3 42.9 44.3 42.3 42.6 43.5 42.2 42.2 43.1 41.8 41.1 40.9 41.5 41.9 42.7 41.4 41.9 42.5 41.6 42.2 43.1 41.6 41.8 42.4 41.8 41.5 41.6 41.9 40.5 40.1 41. 4 40.7 41.0 40.9 40.7 41.0 40.7 40.6 39.4 39.9 40.9 40.3 39.2 40.9 39.3 39.5 40.1 39.2 39.0 40.3 39.6 40.4 40.4 40.3 41.1 41.0 40.4 41.4 40.8 39.8 40.3 40.4 40.8 41.7 40.6 40.9 41.0 39.9 40.6 40.7 40.2 40.3 38.4 39.9 38.3 39.3 39.3 38.8 38.9 Average hourly earnings Electrical equipment and supplies__ Electric distribution equipment__ Electrical industrial apparatus Household appliances... ___ Electric lighting and wiring equipment_______ _______ Radio and TV receiving sets Communication equipment__ Electronic components and accèssories_________ Miscellaneous electrical equipment and supplies............... ........ .......... $2.44 2.60 2. 54 2. 64 $2.44 2. 58 2.55 2.61 $2.43 2.56 2.53 2.61 $2.45 2.60 2.54 2.63 $2.43 2.58 2.54 2.59 $2.42 2.57 2. 52 2. 59 $2. 42 2.56 2.53 2. 59 $2.40 2.53 2. 51 2.60 $2.40 2.56 2. 51 2.60 $2.40 2.55 2.52 2. 59 $2.40 2.53 2.52 2. 58 $2.40 2.50 2.52 2.59 $2. 38 2. 48 2.49 2.56 $2.35 2. 50 2.46 2.52 $2.28 2.42 2.38 2.43 2.28 2. 21 2.60 2.28 2.21 2. 61 2.28 2.21 2.60 2.29 2.20 2.61 2.29 2.18 2. 60 2.28 2.18 2.60 2.28 2.20 2.60 2.25 2.17 2.58 2. 26 2.16 2.56 2.26 2.17 2.56 2.25 2.14 2. 57 2.25 2.17 2. 57 2.22 2.14 2.56 2.22 2.11 2. 52 2.15 2.07 2.44 2.09 2.09 2.08 2.08 2.07 2.06 2.06 2.05 2.04 2.05 2.05 2.04 2.03 2.00 1.93 2. 56 2.59 2.60 2.62 2.58 2. 59 2.56 2. 49 2. 54 2. 54 2. 54 2.52 2. 49 2.42 2.36 Transportation equipment______ Motor vehicles and equipment__ Aircraft and parts____ _____ Ship and boat building and repairing_____________________ Railroad equipment........ ........ Other transportation equipment__ 2. 97 3.05 2.92 2. 97 3.04 2.92 2.97 3.05 2.92 3.01 3.11 2.93 2.99 3.10 2.91 2. 96 3.04 2.91 2. 95 3.04 2.88 2.90 2.97 2.87 2. 91 2. 98 2.86 2.89 2. 95 2. 85 2. 89 2.97 2.84 2.87 2.94 2.84 2.86 2.91 2.83 2. 81 2.87 2. 78 2.74 2.81 2.70 2.94 2.98 2.19 2. 91 2. 93 2.19 2.89 2.94 2.18 2.91 2.93 2.19 2.88 2.91 2.15 2. 88 2.92 2.18 2.88 2. 95 2.16 2. 89 2.97 2.15 2.85 2.98 2.14 2. 84 2.99 2.14 2.80 3.00 2.13 2.80 2.98 2.16 2. 79 2. 96 2.14 2.78 2.83 2.13 2.64 2.78 2.06 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 747 O.—EARNINGS AND HOURS T able C -l. Gross hours and earnings of production workers,1 by industry—Continued 1962 1963 Annual average Industry Mar. a Feb. Jan. Dec. Nov. Sept. Oct. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings M anufacturing—C ontinued Durable goods—Continued Instruments and related products____ Engineering and scientific Instru ments_____________ _________ Mechanical measuring and control devices______________________ Optical and opthalmic goods_____ Surgical, medical, and dental equipment..................................... Photographic equipment and sup plies................................................. Watches and docks-........................ Miscellaneous manufacturing Indus tries........................................................ Jewelry, silverware, and plated ware—.............. ....................... . Toys, amusement and sporting goods........................................... . Pens, pencils, and office and art materials.......... .........-.................. Costume jewelry, buttons, and notions.......................... ................ Other manufacturing industries___ $101.59 $101.59 $100.28 $102.18 $101.76 $100.61 $100.61 $100.04 $99. 55 $100.94 $99.80 $100.04 $98.42 $97.27 $93. 73 119. 23 120.10 117.71 118.71 119. 28 119.00 118. 43 118.44 117.03 118.02 115.79 114.39 107.20 112. 48 110.95 101.50 100.10 93.24 93.02 84.40 84.40 99.14 101. 43 100.85 92.80 92.60 90.64 99. 79 91.30 98.80 89.84 98.98 88.78 99.23 87.29 98.98 90.27 98.74 89.01 98.82 89.87 98. 58 89.01 95. 91 87.33 92.00 81.80 85.47 84.42 85.89 85.69 85.27 86.31 85.47 85.27 84.24 82.21 80.40 83.37 85.05 116.05 117.03 115.08 118.02 119.14 115. 09 115.37 114.13 115.09 116.06 116.06 116.62 117. 74 111.61 106.14 83.53 83.74 82.29 83.13 83.82 83. 79 84.00 83.41 82. 95 84.00 83.16 84.00 83.39 80. 58 76.83 80.39 80.19 79.58 80.19 78.01 78. 60 78.60 77.42 77.03 78.60 78.60 78.80 79.00 75.84 74.28 87.82 86.37 87.20 93.04 90. 20 88.51 86.88 84.77 82.68 86.27 80.67 86.24 85.24 82.62 80.40 72. 76 73.34 73.15 71.44 70. 77 72.07 71.28 70.35 69.89 70.98 71.74 72.10 71. 74 70.17 67.73 76.82 78.59 76.44 76.76 75.98 75. 55 75.52 74.61 74.07 74.82 74.58 74.99 75.39 72.86 71.92 73. 63 86.62 72.65 85. 97 71.39 84.53 72.47 86.22 69.30 84.80 70.98 85.01 71.64 85.46 71.06 84.40 72.25 83. 79 74.07 85.03 72.72 84.02 73.02 84.23 72.98 84.65 68.60 81. 78 66.13 79. 99 Average weekly hours Instruments and related products____ Engineering and scientific instru ments_____ ______ ______ ___ Mechanical measuring and control devices...... ....... ............... .......... Optical and ophthalmic goods____ Surgical, medical, and dental equipment—............................... Photographic equipment and sup plies............................................ Watches and clocks............... ......... Miscellaneous manufacturing indus tries.............. ..................................... Jewelry, silverware, and plated ware............................................. Toys, amusement, and sporting goods....... ................................... Pens, pencils, and office and art materials_____ ______ _______ Costume jewelry, buttons, and notions_______ ____________ Other manufacturing industries__ 40.8 40.8 40.6 41.2 41.2 40.9 40.9 41.0 40.8 41.2 40.9 41.0 40.5 40.7 40.4 41.4 41.7 41.3 41.8 42.0 41.9 41.7 42.0 41.5 42.0 41.5 41.0 38.7 40.9 41.4 40.6 42.0 40.2 41.9 40.3 41.8 40.9 41.9 40.5 41.2 40.4 41.5 40.0 41.4 40.4 41.1 40.5 40.6 40.4 41.6 40.3 41.4 40.5 41.8 40.4 41.4 40.3 41.0 40.0 40.1 40.0 40.0 39.7 40.5 40.7 40.2 40.9 41.0 40.8 41.1 40.7 40.8 40.5 40.3 40.0 41.3 39.4 41.5 39.5 41.1 39.0 42.0 39.4 42.4 40.3 41.4 39.9 41.5 40.0 41.5 40.1 41.7 39.5 41.9 40.0 41.6 39.6 41.8 40.0 42.2 39.9 41.8 39.5 41.3 39.0 39.6 39.5 39.2 39.7 39.6 39.9 40.1 39.7 39.3 39.9 39.9 40.0 40.1 39.5 39.3 40.1 39.8 40.0 42.1 41.0 40.6 40.6 39.8 39.0 40.5 40.5 40.3 40.4 40.3 40.2 38.7 38.4 38.3 38.0 39.1 39.6 39.6 39.3 38.4 39.0 39.2 39.4 39.2 39.2 38.7 39.6 40.3 39.4 40.4 40.2 40.4 40.3 39.9 39.4 39.8 39.8 40.1 40.1 39.6 39.3 39.8 40.1 39.7 39.8 38.8 39.5 39.6 40.1 38.5 40.0 39.0 40.1 39.8 40.5 39.7 40.0 39.7 39.9 40.7 40.3 40.4 40.2 39.9 40.3 40.1 40.5 39.2 39.7 38.9 39.6 Average hourly earnings Instruments and related products____ $2.49 Engineering and scientific instru ments.............................................. 2.88 Mechanical measuring and control devices............... ............................ 2.50 Optical and ophthalmic goods____ 2.22 Surgical, medical, and dental equipment-............ ....................... 2.11 Photographic equipment and sup p lies............................................... 2.81 Watches and clocks.......................... 2.12 Miscellaneous manufacturing indus tries........ ............................ ................. Jewelry, silverware, and plated w are............................................... Toys, amusement, and sporting goods____________ __________ Pens, pencils, and office and art materials____________________ Costume jewelry, buttons, and notions........... ............................... Other manufacturing industries__ See footnotes at end oi table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2.03 $2.49 $2.47 $2.48 $2.47 $2.46 $2. 46 $2.44 $2.44 $2.45 $2.44 $2. 44 $2.43 $2.39 $2.32 2.88 2.85 2.84 2.84 2.84 2.84 2.82 2.82 2.81 2.79 2.79 2. 77 2. 75 2.68 2.49 2.22 2.46 2.22 2.48 2.21 2.49 2.20 2. 47 2.20 2.47 2.17 2.45 2.16 2.45 2.15 2.45 2.17 2. 45 2.15 2.44 2.15 2.44 2.15 2.38 2.13 2.30 2.04 2.11 2.10 2.10 2.10 2.10 2.10 2.09 2.09 2.10 2.10 2.09 2.08 2.04 2.01 2.81 2.08 2.78 2.10 2. 75 2.08 2.76 2.10 2.77 2.10 2.79 2.10 2.79 2.10 2. 79 2.09 2.67 2.04 2.57 1.97 2. 78 2.10 2.82 2.12 2.80 2.11 2.81 2.11 2.03 2.03 2.02 1.97 1. 97 1.96 1. 95 1.96 1.97 1.97 1.97 1.97 1.92 1.89 2.20 2.18 2.14 2.13 2.12 2.13 2.14 2.14 2.11 2.05 2.00 2.19 2.17 2.18 2.21 1.88 1.91 1.91 1.88 1.81 1.82 1.80 1.79 1.82 1.82 1.83 1.83 1.83 1.79 1.75 1.89 1.87 1.87 1.87 1.88 1.88 1.88 1.87 1.88 1.84 1.83 1.80 2.12 1.82 2.12 1.80 2.11 1.79 2.11 1.82 2.10 1.82 2.11 1.80 2.09 1.83 2.09 1.82 2.09 1.75 2.06 1.70 2.02 1.94 1.95 1.94 1.90 1.85 2.16 1.83 2.16 1.84 2.14 1.83 2.15 MONTHLY LABOR REVIEW, JUNE 1963 748 T able C -l. Gross hours and earnings of production workers,1 by industry—Continued Mar.21 Feb. A nnual average 1962 1963 Industry Jan. D ec. N ov. Oct. Sept. Aug. Ju ly June M ay Apr. j M ar. 1961 1960 A verage w eek ly earnings Manufacturing—Continued N o n d u r a b le g oods Food and kindred products.„__ Meat products___ ________ Dairy products_______________ Canned and preserved food, except meats...................... .................... Grain mill products___________ Bakery products______________ Sugar_______________________ Confectionery and related products. Beverages___________________ Miscellaneous food and kindred products______ ____ _______ Tobacco manufactures____________ Cigarettes___________ ________ Cigars______________________ Textile mill products______________ Cotton broad woven fabrics_____ Silk and synthetic broad woven fabrics____________________ Weaving and finishing broad woolens____________________ Narrow fabrics and smallwares___ Knitting____________________ Finishing textiles, except wool and knit_______ _______________ $93.73 100.30 97.90 ¡>92.86 $93.15 $94.12 $93.52 $91. 21 $92.80 $91. 46 $93.66 $92.70 $92. 48 $91.13 $90.45 $89.16 98. 89 .01.66 L03.34 103. 58 L00. 86 .00.04 98. 42 .01.68 .01.26 100.60 98.09 96.43 97.58 96. 37 97.29 97.10 96. 64 95. 79 98.01 95.63 98.08 96. 54 95.63 94.53 94.53 92. 65 $86.30 94.83 89.68 75.22 73.83 73.50 72.36 70.88 72.96 79.07 76.00 75. 81 71.06 74.69 75.04 72. 56 102. 42 103.81 04.28 105.23 106. 65 104. 41 [05.33 '03. 51 L04.20 101. 47 99.01 99.39 98.95 90.97 90.91 90.29 92.11 93.20 91.71 93.48 92. 21 92. 89 92. 66 91.35 89. 65 89.20 108.50 107. 53 102.09 99.89 101.23 91.76 108.36 LOS. 88 111.02 L12. 40 L04.08 102.01 98.60 77. 81 76.64 76.04 77.59 77.18 78.14 79.71 77. 78 75. 86 76.82 76.63 74.68 75. 83 104. 54 102.05 101.39 104.01 103.88 103.46 105.30 104.30 107.94 104.81 103.02 101.75 100.98 71.04 99. 46 87. 64 97. 65 73. 23 99.85 68.71 94.15 83.81 93.70 69.34 96.72 87.13 83.95 64.94 80.29 53.86 63.60 62. 56 Miscellaneous textile goods. Food and kindred products. Canned and preserved food, except meats_______________________ Grain miil products____________ Bakery products_______________ Sugar________________________ Confectionery and related products. Beverages_____________________ Miscellaneous food and kindred products____________________ Tobacco manufactures------------------ -Cigarettes___ _________________ Textile mill products_________ ____ _ Cotton broad woven fabrics_____ Silk and synthetic broad woven fabrics______________________ Weaving and finishing broad woolens_____________________ Narrow fabrics and smallwares___ Knitting______________________ Finishing textiles, except wool and 88. 41 74.10 90.00 55.85 89. 45 72.01 87.17 56.76 69. 46 67.65 89.68 75.65 91.77 56.06 69.12 67.49 68.38 67.24 68. 54 67. 57 69.03 85. 72 56.02 65.04 63.20 73.53 75.17 73.70 72.76 72.16 68.72 68.31 79.06 71.10 62.24 80.89 72.98 62. 56 80. 41 70. 93 62.24 78. 62 71.28 61.76 77.11 71.21 61.60 72.28 68.11 59.21 69.83 66.07 56.93 80.97 73. 69 63. 55 80. 67 79. 55 72.16 63. 24 79. 52 79. 79 70. 75 62.99 77. 74 79.00 71.81 63.29 78.31 74.70 72.04 59. 55 75.36 71.73 70. 62 58.05 73.60 41.2 41.5 43.1 41.1 41.4 42.5 40.5 40.2 42.2 40.2 39.2 42.2 40.9 41.0 42.5 40.9 40.7 42.3 41.2 45.7 41.1 42.7 38.9 42.0 37.4 45.3 41.0 42.9 39.6 41.1 38.5 44.2 40.6 41.3 39.5 40.4 37.9 43.4 40.2 41.3 39.1 39.9 37.4 43.4 40.0 39.6 39.7 39.6 38.4 44.8 40.2 43.4 39.8 40.1 38.6 44.2 40.1 44.2 39.4 40.3 42.8 37.2 38.6 35.6 40.6 40.6 42.3 38.4 39.7 36.9 41.1 41.0 42.3 38.4 39.9 36.4 40.9 40.9 42.3 38.0 39.3 36.5 40.7 41.0 42.8 37.7 38.4 37.1 40.8 41.2 42.5 42.4 37.8 39.2 38.0 40.6 40.6 39.0 39.5 37.6 39.9 40.0 38.2 88.0 37.4 39.5 40.1 42.8 42.5 43.2 42.6 42.3 42.2 41.4 41.4 43.2 41.1 38.9 44.2 41.7 39.1 43.7 41.0 38.9 43.2 41.2 38.6 42.6 41.4 38.5 41.3 40.3 38.2 40.6 39.8 37.7 41.1 43.3 41.4 40.9 41.4 40.4 42.7 42.3 40.4 41.0 40.6 39.9 41.5 41.1 41.0 41.8 A verage h ou rly earnings $2. 23 $2. 22 $2.22 $2. 23 $2. 25 2. 44 2. 45 2.46 2. 44 2.43 2.24 2.25 2.26 2.27 2.29 43.0 41.0 40.8 41.2 42.9 40.2 40.9 40.7 42.7 40.8 41.1 41.0 41.5 40.7 39.7 40.3 40.3 39.9 38.7 40.0 $2.25 2. 43 2.25 $2.25 2. 44 2.24 $2. 25 2. 46 2.24 $2.18 2.38 2.18 $2.11 2.33 2.12 92.00 72.35 95.94 61.23 91.37 70.72 93.03 59. 82 91.38 68.04 89.38 59. 28 91.59 68.17 86.56 60.60 73.28 88.01 55.18 90.10 76.03 91.31 57. 50 68. 45 67.16 68.45 67.16 67. 54 65.27 68. 21 66.99 68. 21 66.99 74.99 74.47 74. 47 73.35 74.04 74.80 70.69 60.32 73. 67 70.07 61.82 74. 44 70. 07 61.99 76.80 71.45 62.15 77. 96 70. 76 62.08 75.48 72. 45 60.61 79.17 80.46 75.90 61.29 80.73 80.04 77.33 61.69 81.12 77.98 76.72 62.00 79. 73 40.2 39.4 41.9 40.5 40.5 42.3 41.1 41.5 42.4 41.2 41.6 42.2 76. 59 75. 26 76.04 75. 58 74. 45 71.10 61.85 62. 52 62.22 79. 32 78. 72 80.10 A verage w eek ly hours 42.0 41.2 40.9 41.8 40.5 41.5 41.0 41.0 43.4 42.2 42.5 42.8 37.8 43.4 39.9 41.1 39.7 39.9 37.1 43.8 39.7 41.2 39.3 39.4 37.5 44.0 39.6 41.5 39.4 39.3 37.3 44.4 40.4 45.2 40.2 39.7 37.5 45.0 40.7 45.6 40.2 39.8 38.4 45.2 40.4 40.6 40.7 40.1 41.4 45.4 41.0 42.0 41.3 40.5 40.0 45.4 40.8 42.2 40.3 40.9 42.1 42.6 36.3 36.7 37.1 40.0 39.9 42.7 43.2 43.6 43.3 38.5 39.1 37.7 39.8 40.4 40.1 41.0 38.4 40.5 40.9 38.9 41.0 39.0 40.5 40.7 40.1 37.8 38.6 40.5 40.7 43.1 41.6 40.1 38.1 40.2 39.8 42.7 37.2 37.7 36.9 40.3 40.3 42.4 42.4 42.4 43.1 42.8 42.8 42.4 91.36 91.81 92.45 68. 51 66.50 92.02 69.70 85. 51 58. 99 68.00 65.84 73.15 90.32 59.57 67.26 66. 66 75.39 95.53 59.14 68.45 67.49 73.35 73.35 73.35 76.86 69. 77 61.24 76.49 70.18 60. 59 75. 35 70. 69 59.57 80.14 77. 29 62.56 79.95 79.15 75. 83 61.69 79.73 40.4 39.8 42.2 72.91 88.22 57.93 90.50 42.6 40.9 38.8 41.8 40.8 37.4 41.4 41.1 37.0 41.1 41.1 37.7 40.7 40.5 38.4 42.4 42.7 40.1 41.0 42.1 42.6 39.8 41.1 40.8 40.7 39.1 40.6 42.8 42.4 39.8 41.4 42.8 43.2 39.8 41.6 Food and kindred products.._______ $2.32 Meat products_______________ _ . 2.52 Dairy products________________. 2.32 Canned and preserved food, except 1.99 meats______________________ 2.36 Grain mill products____________ Bakery products______________ . 2.28 2.64 Sugar____ ___________________ Confectionery and related products. 1.96 2.62 Beverages________ ____________ Miscellaneous food and kindred . 2.17 products____ __________ . 1.96 Tobacco manufactures________ . 2.34 Cigarettes_______________ $2.31 2.51 2.30 $2.30 2.51 2.30 $2.29 2.49 2.29 $2.27 2.49 2.29 1.99 2.37 2.29 2. 61 1.95 2.59 1.96 2.37 2.28 2.46 1.93 2.58 1.94 2.37 2.28 2.21 1.93 2.62 1.89 2. 37 2.29 2. 22 1.92 2.61 1.90 2.31 2.27 2. 26 1.92 2.58 1. 91 2. 32 2. 28 2. 58 1.93 2.60 1.90 2.28 2. 26 2.58 1.93 2.55 1.84 2.28 2. 26 2.60 1. 95 2. 57 1.90 2. 24 2. 20 2. 62 1.94 2.55 1.94 2.24 2. 25 2. 52 1.94 2.55 1.98 2.29 2. 23 2. 47 1.91 2. 65 1.94 2.28 2. 23 2.49 1.91 2. 55 1.85 2.22 2.18 2. 25 1.84 2. 49 1.78 2.13 2.09 2.12 1.76 2.40 1.57 1.70 1.65 2.16 1.92 2.33 1.59 1.70 1.65 2.15 1.90 2.31 1. 58 1.69 1.65 2.14 1.88 2.33 1.54 1.69 1.65 2.11 1.86 2. 34 1.57 1.69 1.65 2.09 1.70 2. 29 1. 57 1.69 1.65 2.12 1.70 2.32 1. 57 2.14 1.97 2.28 1.55 1. 68 1.65 2.13 1.98 2.30 1.50 2.12 1.97 2.30 1.54 1.68 1.64 2.14 1.80 2.28 1.56 1.68 1.65 1.69 1. 65 1.69 1.65 2.09 1.95 2. 29 1.53 1.68 1.04 2.09 1.91 2.27 1.53 1.68 1.64 2.05 1.77 2.17 1. 49 1.63 1.58 1.98 1.70 2.08 1.44 1.61 1.56 Floor covering_________________ Yarn and thread___ ___________ Miscellaneous textile goods______ _ Textile mill products______________ . . Cotton broad woven fabrics. Silk and synthetic broad ' fabrics____ ________________ . Weaving and finishing broad woolens____ ________________ . Narrow fabrics and smallwares... . Knitting_______ _____________ . Finishing textiles, except wool anc knit_______________________ . Floor covering_______________ . Yarn and thread______________ . . Miscellaneous textile goods.. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40.9 40.5 38.5 42.2 41.3 38.6 42.0 40.8 37.8 41.7 43.1 40.0 41.1 1.73 1.73 1.73 1.74 1.74 1.74 1.73 1.73 1.73 1.74 1.73 1.72 1.71 1.66 1.65 1.83 1.71 1.62 1.83 1.72 1.62 1.82 1.72 1.61 1.82 1.72 1.60 1.81 1.73 1.61 1.82 1. 73 1.61 1.82 1.73 1.61 1.83 1.73 1.60 1.83 1.73 1.60 1.83 1.75 1.60 1.84 1.73 1.60 1.82 1.73 1.60 1.81 1.72 1.60 1.75 1.69 1.55 1.72 1.66 1.51 1.89 1.81 1.56 1.95 1.88 1.78 1.55 1.94 1.85 1.78 1.55 1.95 1.88 1.79 1.54 1.95 1.87 1.79 1.55 1.95 1.87 1. 78 1.55 1. 94 1.85 1.77 1.55 1.93 1.84 1.76 1.54 1.92 1.85 1.76 1.54 1.93 1.87 1.78 1. 55 1.93 1.85 1.76 1.55 1.93 1.86 1.70 1.54 1.91 1.85 1.76 1.54 1.91 1.80 1.77 1.50 1.87 1.78 1.77 1.50 1.84 749 0 —EARNINGS AND HOURS T able C -l. Gross hours and earnings of production workers,1 by industry—Continued 1963 Annual average 1962 Industry Mar. 2 Feb. Jan. Dec. Nov. Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Manufacturing—Continued N o n d u ra b le goods—Continued Apparel and related products----------Men’s and boys’ suits and coats— Men’s and boys’ furnishings........... Women’s, misses’, and juniors’ outerwear..... ....... ....................... Women’s and children’s undergarmerits__ Hats, caps, and millinery............... Girls’ and children's outerwear----Fur goods and miscellaneous apparel........ —............... -.............. Miscellaneous fabricated textile products__________________ Paper and allied products---------------Paper and pulp............................... Paperboard__________________ Converted paper and paperboard products_______ ____ -....... . Paperboard containers and boxes.. Printing, publishing, and allied industries__________________________ Newspaper publishing and printing. Periodical publishing and printing. Books_______________________ Commercial printing________ _ Bookbinding and related industries. Other publishing and printing industries......................................... Oct. $61.69 $60.82 $59. 64 $60.12 $60.62 $59. 95 $61.32 $62.16 $60. 76 $61.09 $60. 59 $60. 96 $61. 49 $57. 70 $56.45 73.48 72.93 71.57 73.13 72.54 71.57 74.09 73.89 73. 53 74.09 73. 50 72.17 71.39 67. 78 68.27 53.28 53.14 52.85 53.20 53. 77 53. 77 54.48 54.81 53.58 54. 95 53.58 53.30 53. 82 49.87 48.55 68.00 63.46 62.60 63.17 62.32 65.23 54.32 64.05 54.67 55.18 65.34 52.15 57.22 56.92 62. 46 63.68 53.61 53.35 57.07 56. 47 55.12 55.02 54. 77 55.39 55.69 53.87 51.91 66. 79 69.00 68. 26 65. 70 61. 60 66.07 68. 63 63.19 60. 54 54.72 55.69 55.63 56.30 54. 51 54. 36 55.94 52. 75 51.54 61.05 61.05 64.61 64. 79 63.89 64.05 62.59 62.29 63.70 63. 96 104. 49 114.06 116. 77 63.03 103. 82 113. 36 117. 64 61.38 103. 58 114.58 116. 59 63.96 102. 96 112. 75 115.58 91.52 91.10 89.60 97.13 94. 73 94.05 90.69 94.08 108.29 109. 99 115.83 101.18 110. 54 87.30 107. 62 110. 23 114. 62 100. 00 109. 87 85.31 63.71 104.13 115. 98 117.13 91.02 93.48 110.21 109.38 117. 27 104.23 112.79 87.78 59.81 63.34 62.53 103.21 103. 64 115.02 115.46 115.02 114.93 64.73 64.90 104.68 103. 28 115.46 114.23 119.08 115. 01 90. 58 91.43 91.94 92.34 91.98 94.24 108. 20 108.06 113.37 100.98 110.87 86.56 106. 88 107.10 106.92 100. 84 109. 52 86. 71 109.24 112.85 113.83 100. 04 111. 50 87.01 64. 68 103. 28 113. 45 113.45 90. 20 90.42 94.05 95.15 108.49 113.04 111. 83 97.64 110.37 85.19 107. 82 111.08 114.11 98.11 109.70 85.63 109. 62 111.38 118. 55 102.16 111.11 88. 53 67.16 65.74 107.34 109. 87 111. 95 98. 64 109. 87 84. 75 63.64 64.73 66.72 66.85 65.93 56.36 55.23 69. 75 67.12 55.39 55.85 61.61 58.76 61. 23 62. 47 62. 78 60. 86 58.74 63.71 101. 34 111.10 112.46 61.92 101.10 110. 85 112.46 62. 04 101 15 110. 93 112.01 61.45 99. 45 109. 69 109.44 60.48 95.37 105. 46 105.16 89.60 89. 40 88. 97 87.13 83.23 92. 74 91.88 92. 77 90. 47 86.10 107.90 110. 90 108. 58 101.75 109. 87 86. 36 107.90 110. 23 110. 15 99. 54 110.04 85.58 107. 42 107. 28 111. 44 101.68 110. 21 84. 92 105. 05 107. 38 110. 09 99.06 106. 20 82.13 102. 80 105.33 109.18 95. 82 103. 88 78. 87 115. 62 114.17 113.30 111.84 110.01 108.77 110. 21 109.35 110.11 110.11 109.16 110.88 111.84 108.19 106.37 Average weekly hours 35.5 Apparel and related products_______ 36.5 36.2 35.5 36.0 36.3 35.9 36.5 37.0 36.6 36.8 36.5 36.5 36.6 35.4 36.9 Men’s and boys’ suits and coats— 37.3 37.4 36.7 37.5 37.2 36.7 37.8 37.7 38.1 37.8 37. 5 37.2 36.8 35.3 36.5 Men’s and boys’ furnishings.......... 37.0 36.9 36.7 37.2 37.6 37.6 38.1 38.6 38.0 38.7 38.0 37.8 37.9 36.4 Women’s, misses’, and juniors’ 33.2 outerwear.......................- ............ 35.6 34.7 33.4 33.3 33.6 32.8 33.8 34.8 34.6 34.4 34.8 35.3 35.0 33.3 Women’s and children’s under35.8 garments...................................... 36.6 36.1 35.5 36.3 37.4 37.2 37.3 37.4 36.5 36.2 35.8 36.2 36.4 36.4 35.2 Hats, caps, and millinery_______ 37.1 35.7 35.0 36.5 34.7 34.8 36.3 37.5 36.5 36.5 35.0 36.3 37.3 35.7 35.3 Girls’ and children’s outerwear___ 36.2 36.5 35.5 35.0 35.5 35.1 36.0 36.4 36.6 36.8 36.1 38.0 36.8 35.4 Fur goods and miscellaneous ap35.6 parel............................ ............... 35.7 35.6 35.7 36.3 36.4 36.3 36.6 36.6 35.8 36.4 35.6 35.9 36.5 35.8 Miscellaneous fabricated textile 37.8 products___________________ 37.7 37.7 37.0 38.3 38.4 38.5 38.3 38.2 37.2 38.3 37.7 37.3 37.6 37.7 42.2 Paper and allied products__________ 42.5 42.3 42.3 42 9 42.5 42.5 43.0 42.9 42.8 42.9 42.4 42.3 42.6 42.5 43.4 Paper and pulp_______________ 44.1 43.9 43.9 43.9 43.6 43.3 43.7 43.6 43.9 43.7 43.4 43.3 43.5 43.7 44.1 43.6 43.1 43.3 44.4 44.8 44.1 44.1 43.7 43.4 44.9 44.5 44.2 43.9 44.6 Paperboard___ _______________ Converted paper and paperboard 40.8 41.0 40.8 41.0 41.6 41.0 41.1 41.6 41.6 41.1 41.6 41.1 41.2 41.0 41.1 products_______ ___________ 41.0 Paperboard containers and boxes... 41.0 40.5 40.7 41.7 41.8 42.1 42.6 42.1 41.8 42.0 41,4 41.2 41.6 41.5 Printing, publishing, and allied indus38.5 tries--- ------- ---- -------------- -------— 38.4 38.1 37.9 38.6 38.2 38.1 38.6 38.4 38.2 38.3 38.4 38.4 38.5 38.2 36.7 Newspaper publishingand printing. 36.1 35.9 35.7 37.0 36.7 36.3 36.4 36.3 36.5 36.5 36.6 36.5 36 0 36. 4 39.7 Periodical publishing and printing. 40.3 39.5 38.6 39.8 39.1 39.9 40.6 40.5 39.7 40.5 39.2 39.2 39. 8 39.6 40.6 Books_______________________ 40.4 39.6 39.7 39.7 38.9 39.4 40.7 40.8 39.3 40.0 40.7 40.3 41.0 40.6 39.2 Commercial printing...................... 39.3 33.9 38.7 39.4 39.0 38.9 39.4 39.2 39.1 39.1 39.1 39.3 39.5 38.9 Bookbinding and related indus38.1 38.5 38.3 38.2 38.5 38.2 38.4 39.7 39.5 38.7 38.6 38.9 38.9 38.6 38.2 trips Other publishing and printing in38.5 38.4 38.5 38.7 dustries____________________ 38.8 38.7 38.8 38.7 38.6 38.3 38.4 38.1 38.1 38.5 38.3 Average hourly earnings Apparel and related products----------- $1.69 $1.68 $1.68 $1.67 $1.67 $1.67 $1.68 $1.68 $1.66 $1.66 $1.66 $1.67 $1. 68 $1.63 $1.59 1.85 1.97 1.95 1.95 1.95 1. 95 1.95 1.96 1.96 1.93 1.96 1.96 1.94 1.94 1.92 Men’s and boys’ suits and coats— 1.33 1.44 1.44 1.44 1.43 1.43 1.43 1.43 1.42 1.41 1.42 1.41 1.41 1.42 1.37 Men’s and boys’ furnishings........... Women’s, misses’, and juniors’ 1.77 1. 91 1.90 1.90 1.88 1.88 1.90 1.93 1.93 1.90 1.85 1.86 1.89 1.90 1.85 outerwear..................... ............. Women’s and children’s under1.45 1.54 1.53 1.53 1.52 1.53 1.53 1.53 1.51 1. 51 1.52 1.53 1.53 1.53 1.48 garments__ _________ -______ 1.72 1.88 1.88 1.83 1.79 1.80 1.83 1.84 1.84 1.87 1.80 1.76 1.82 1.84 1.77 Hats, caps, and millinery_______ 1.46 1.52 1.53 1.54 1.49 1.51 1.52 1.52 1.53 1.52 1.53 1. 51 1.51 1.52 1.49 Girls’ and children’s outerwear----Fur goods and miscellaneous ap1.65 1.71 1.68 1.71 1.78 1.78 1.76 1.75 1.71 1.74 1.75 1.72 1.74 1.72 1.70 parel ____________________ Miscellaneous fabricated textile 1.60 1. 69 1.68 1.69 1.69 1.69 1.68 1.67 1.65 1.65 1.67 1.69 1.66 1. 65 1.63 products...................................... 2 26 2. 45 2.44 2.45 2. 44 2.43 2 43 2.43 2. 42 2. 42 2. 40 2.39 2.39 2. 38 2. 34 Paper and allied products__________ 2.43 2.6c 2.62 2.63 2.63 2.62 2. 62 2.61 2. 60 2. 61 2. 58 2. 56 2. 56 2. 55 2. 51 Paper and pulp___ ___________ 2. 44 2.65 2.62 2.63 2.67 2.65 2. 62 2.63 2. 62 2.62 2. 58 2. 55 2. 55 2.54 2.51 Paperboard__________________ Converted paper and paperboard 2.04 2. 22 2.22 2.23 2.21 2.20 2.20 2.20 2.19 2.18 2.18 2.18 2.17 2.17 2.12 products___________________ 2.10 2.28 2.28 2.26 2.26 2.25 2.26 2.28 2. 25 2.25 2.24 2.24 2. 23 2.23 2.18 Paperboard containers and boxes... Printing, publishing, and allied indus2. 67 2.87 2.84 2.82 2.83 2.84 2.83 2. 84 2.82 2.81 2.81 2. 81 2.81 2. 79 2.75 tries___________ _______ ______ 2.87 3.03 3.01 3.00 3. 05 3.08 3.06 3.06 3.03 3.01 3.02 3.03 3.02 2.98 2.95 Newspaper publishingand printing. 2. 75 2. 80 2. 78 2. 91 2.87 2.77 2.86 2.86 2. 86 2. 92 2.86 2. 82 2. 83 2. 77 2. 81 Periodical publishing and printing. 2. 3( 2.5i 2. 55 2.54 2.52 2.51 2. 49 2. 51 2.48 2. 51 2. 50 2. 50 2.47 2. 48 2. 44 Books . ________________ 2. 65 2. 79 2. 73 2.87 2. 85 2.83 2.83 2. 83 2. 82 2. 82 2.82 2.81 2.81 2.81 2.80 Commercial printing.. ________ 2.07 2.28 2.26 2.27 2.26 2.23 2.23 2.23 2.21 2.19 2.21 2.22 2.20 2.20 2.15 Bookbinding and related industries. Other publishing and printing in2. 77 2.98 2. 95 2.92 2.89 2.85 2.84 2. 87 2. 87 2.89 2.86 2.85 2.88 2. 89 2.81 dustries----- ------------------------- See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 750 MONTHLY LABOR REVIEW, JUNE 3963 T able C -l. Gross hours and earnings of production workers,1 by industry—Continued 1963 1962 Annual average Industry Mar.» Feb. Jan. Dec. Nov. Oct. Manufacturing—Continued N o n d u r a b le g o o d s — Continued Chemicals and allied products______ Industrial chemicals___ _______ Plastics and synthetics, except glass_____ ____ ____________ Drugs............................... .......... . Soap, cleaners, and toilet goods__ Paints, varnishes, and allied prod ucts______________________ Agricultural chemicals___ ______ Other chemical products________ Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings $111.1C $1 1 0 . 8a $111.1( $112.11 $111.33 $110 95 $110 81 $110 1? 126.4C 126. ie 126.05 127.6£ 126.6£ 126.05 125. 52 124.0£ 1 2 4 ! 8C 1 2 5 ! 1 C I 2 3 ! 78 123.48 122.43 120.93 117.31 110. 6£ 110.15 110. OC 111. 63 109. 8C 109. 5£ 110.24 110.24 111.41 112.52 109. 62 109.6S 108. 91 107. 74 104.17 100. 7C 100.45 100.85 100. 6C 100. IS 100. IS 98.1C 98.25 97. 92 98.88 98. 57 97.1C 96.87 93. 96 90.68 103.52 102.91 103.01 103.73 103. 98 103.48 105.32 103.98 103.7E 103.73 101. 5C 101.5£ 100.53 98.98 94.77 103.38 102.21 101.71 102.31 101.65 100. 75 101. 75 102.34 102. OS 104.25 105.00 102.42 100.04 98.25 95.65 90.4a 89.8S 89.8£ 90.52 89. 46 89.68 90.3: 86. 72 88. 2( 87.77 92. 57 87.12 85.80 84.15 82.37 104.6C 105.06 106.24 107.52 105.6« 105.57 106.17 105.08 104.42 104. 75 103.09 102.67 102.09 101.19 97.00 Petroleum refining and related Indus tries_____ ______ _____________ 129.02 126.36 130.62 126.99 127. 71 127. IS Petroleum refining______ ______ 135.05 132.68 137.52 132.48 132. 57 130.88 Other petroleum and coal products. 100.10 98.60 102.5C 105.59 108.03 113.48 Rubber and miscellaneous plastic products....................... ...................... 101.34 100.69 101.34 103.00 101.84 101.02 Tires and inner tubes__________ 129.36 128.32 129.52 134.55 132. 75 132.11 131.09 126.35 129.44 127.68 126.05 125.55 123.32 124.42 118. 78 135.2' 129. & 133. 5' 131.65 130. 60 129. 97 127.58 129.24 123.22 115.57 113.40 113.70 111.95 106.27 104. 73 103.49 102.10 99.26 101. 76 101.02 101.84 104. 58 101.19 99.63 98.25 96.72 92.97 131. 78 131. 7C 136.88 138.18 130.19 125.83 122.45 121.88 116.33 96. 4C 94.42 93.9C 98.05 96. 05 95.17 94.07 91.53 87.82 86.53 85.28 85.89 87.36 85.90 85.08 85.08 82.82 79.40 Other rubber products__________ Miscellaneous plastic products___ 96.05 86.10 95.82 85.89 96. 29 86. 51 97.47 86.10 96.5£ 85.26 95.30 85.48 Leather and leather products_______ Leather tanning and finishing____ Footwear, except rubber________ Other leather products_________ 64.58 88.58 61.88 63.41 65.08 88.36 62.33 63.24 65.60 88.84 63.54 62.70 65.05 88.84 62.66 62.79 64.03 87. 78 60.67 64.05 62.63 88.44 59.30 61. 79 Chemicals and allied products_______ Industrial chemicals____________ Plastics and synthetics, except glass____ ___________________ Drugs________________________ Soap, cleaners, and toilet goods___ Paints, varnishes, and allied prod ucts....................................... .......... Agricultural chemicals__________ Other chemical products_________ 41.3 41.6 41.2 41.5 41.3 41.6 41.7 42.1 41.4 41.8 41.4 41.6 41.5 41.7 41.4 41.5 41.3 41.1 40.6 41.1 41.0 40.2 41.2 41.5 40.4 41.8 41.4 41.0 41.3 41.2 41.1 41.2 41.4 40.9 41.6 40.9 41.3 40.7 43.9 40.7 40.4 42.6 41.2 40.2 42.4 41.5 40.6 42.1 42.0 40.5 42.0 41.6 40.3 42.5 41.4 Petroleum refining and related indus tries___________________________ Petroleum refining_____________ Other petroleum and coal products. 40.7 40.8 40.2 40.5 40.7 39.6 41.6 41.8 41.0 41.5 41.4 41.9 41.6 41.3 42.7 Rubber and miscellaneous plastic products.................................... ........... Tires and inner tubes___________ Other rubber products__________ Miscellaneous plastic products....... 40.7 40.3 40.7 41.0 40.6 40.1 40.6 40.9 40.7 40.1 40.8 41.0 41.2 41.4 41.3 41.0 Leather and leather products________ Leather tanning and finishing......... Footwear, except rubber_________ Other leather products__________ 36.9 39.9 36.4 37.3 37.4 39.8 37.1 37.2 37.7 40.2 37.6 37.1 37.6 40.2 37.3 37.6 64.36 88.26 61. 6S 62.75 65. 53 87.82 63.67 62.37 65.84 85.89 64.46 62.21 65.88 88.70 64.01 63.08 63.98 88.29 61. 66 61.55 63. 81 86.80 61.32 62.37 65.36 85.57 63.17 63.20 62.83 84.35 60.15 61.07 60.52 81.74 58.04 58.62 41.5 41.6 41.8 42.0 41.8 41.8 41.7 41.7 41.4 41.5 41.4 41.7 41.3 41.6 41.6 41.1 41.1 42.2 40.8 40.7 42.3 41.2 41.0 42.0 40.9 40.6 42.0 40.8 40.8 41.9 40.7 40.7 41.6 40.5 40.9 41.5 40.3 40.5 40.7 42.6 41.8 41.1 41.1 41.7 41.0 42.2 41.6 41.7 42.4 41.9 42.0 45.6 41.4 41.3 44.0 41.4 40.5 42.9 41.0 40.6 42.5 41.3 40.7 42.9 41.3 41.7 40.9 44.5 42.7 42.0 45.5 41.7 40.8 45.0 42.3 41.6 45.3 42.0 41.4 44.6 41.6 41.2 43.2 41.3 41.0 42.4 40.7 40.5 41.9 41.2 40.9 42.9 41.1 40.8 42.6 40.9 41.1 41.1 40.6 40.9 40.9 40.9 40.9 41.2 40.8 41.4 41.4 40.9 40.9 40.7 41.0 40.9 42.1 40.3 40.9 42.0 42.5 41.9 41.8 41.3 41.2 41.4 41.3 41.0 40.2 41.2 41.3 40.6 39.5 40.9 41.1 40.3 39.7 40.5 40.6 39.9 39.3 40.1 40.1 36.8 39.9 35.9 37.9 36.2 40.2 35.3 37.0 37.2 40.3 36.5 37.8 38.1 40.1 37.9 37.8 38.5 39.4 38.6 37.7 38.3 40.5 38.1 38.0 37.2 40.5 36.7 37.3 37.1 40.0 36.5 37.8 38.0 39.8 37.6 38.3 37.4 39.6 36.9 37.7 36.9 39.3 36.5 37.1 Average weekly hours Average hourly earnings Chemicals and allied products............... Industrial chemicals____________ Plastics and synthetics, except glass________________________ Drugs_______ ________________ Soap, cleaners, and toilet goods___ Paints, varnishes, and allied prod ucts................................................. Agricultural chemicals__________ Other chemical products_________ $2.69 3.04 $2.69 3.04 $2.69 3.03 $2.69 3.03 $2.69 3.03 $2.68 3.03 $2.67 3.01 $2.66 2. 99 $2.67 3.00 $2.66 2.98 $2.62 2.96 $2. 61 2.96 $2. 61 2.95 $2.58 2.90 $2.50 2.82 2.68 2.45 2.55 2.68 2.45 2.56 2.67 2.43 2.55 2.67 2.43 2.53 2.66 2.43 2. 53 2.66 2.42 2.53 2.65 2.40 2.55 2.65 2.39 2.53 2.64 2.40 2.55 2.66 2.40 2.53 2.61 2.41 2.50 2.61 2.38 2.49 2.60 2.38 2.47 2. 59 2.32 2.42 2.51 2.25 2.34 2.54 2.06 2.57 2.53 2.11 2.55 2.53 2.12 2.56 2.52 2.15 2.56 2.51 2.13 2.54 2.50 2.11 2. 55 2.50 2.12 2.54 2. 49 2.11 2.52 2.49 2.09 2.51 2.50 2.07 2.50 2.50 2.03 2.49 2. 48 1.98 2.48 2. 47 2.00 2.49 2.42 1.98 2.45 2.35 1.92 2.35 Petroleum refining and related indus tries___ ________________________ Petroleum refining..................... ...... Other petroleum and coal products. 3.17 3.31 2.49 3.12 3.26 2.49 3.14 3.29 2.50 3.06 3.20 2.52 3.07 3.21 2.53 3.05 3.20 2.55 3.07 3.22 2.54 3.03 3.17 2.52 3.06 3.21 2.51 3.04 3.18 2.51 3.03 3.17 2.46 3.04 3.17 2.47 3.03 3.15 2. 47 3.02 3.16 2.38 2.89 3.02 2.33 Rubber and miscellaneous plastic products________________________ Tires and inner tubes___________ Other rubber products__________ Miscellaneous plastic products....... 2.49 3.21 2.36 2.10 2.48 3.20 2.36 2.10 2.49 3.23 2.36 2.11 2.50 3. 25 2.36 2.10 2.49 3.23 2.35 2.10 2.47 3.23 2.33 2.09 2. 47 3.23 2.33 2.09 2.47 3.22 2.32 2.08 2.49 3.25 2.33 2.10 2.49 3.25 2.34 2.09 2.45 3.16 2.32 2.08 2.43 3.13 2.31 2.06 2.42 3.10 2.30 2.07 2.40 3.07 2.26 2.04 2.33 2.96 2.19 1.98 1.75 2.22 1.70 1.70 1.74 2.22 1.08 1.70 1.74 2.21 1.69 1.69 1.73 2.21 1.68 1.67 1.74 2.20 1.69 1.69 1.73 2.20 1.68 1.67 1.73 2.19 1.69 1.66 1.72 2.19 1.68 1.65 1.71 2.18 1.67 1.65 1.72 2.19 1.68 1.66 1.72 2.18 1.68 1.65 1.72 2.17 1.68 1.65 1.72 2.15 1.68 1.65 1.68 2.13 1.63 1.62 1.64 2.08 1.59 1.58 Leather and leather p r o d u c ts ......___ Leather tanning and finishing.......I Footwear, except rubber_________ Other leather products_____ _____ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 751 0.—EARNINGS AND HOURS T able C -l. Gross hours and earnings of production workers,1 by industry—Continued Annual average 1962 1963 Industry M ar. 2 Feb. Jan. Dec. Nov. Sept. Oct. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Transportation and publio utilities: Railroad transportation: Local and interurban passenger transit: Local and suburban transportation. Intercity and rural buslines______ Motor freight transportation and storage_________________________ Pipeline transportation........................... Communication: Telephone communication.............. Telegraph communication4........... Radio and television broadcasting. Electric, gas, and sanitary services-----Electric companies and systems__ Gas companies and systems______ Combined utility systems. -------Water, steam, and sanitary systems. $117.94 $114.26 $118.21 $116.45 $115.33 $114.65 $112.02 $113.48 $112.41 $108.84 $100.98 $100. 91 $99. 42 $100.86 $100.62 $100.38 100.20 101.01 100. 49 101.48 100. 58 100.11 99.30 98.24 94.82 118.85 122. 97 125.12 116.33 117.73 119.14 125.65 129. 44 126.62 121.80 117.85 115. 37 112.61 112.14 105.22 114.26 113.98 111. 52 114. 54 113. 30 113. 30 115. 78 115. 35 114.81 114. 39 112. 61 112.06 110.70 108.16 104.17 136.34 138.63 138.58 139.52 131.78 130.07 135.05 130.09 137.37 133.50 130.17 129.85 130. 40 131. 78 124.63 100.69 107.12 131.20 119.72 120.13 112.20 129.37 97.58 101.09 108.05 131.93 120.01 119.43 113.44 129.68 98. 47 99. 94 108. 05 134. 30 119. 60 120. 42 111. 38 128. 64 97. 64 101.35 106.97 130.93 121.18 121.60 114. 40 130.94 96.70 103.07 105. 78 132. 78 119.48 119.89 111. 11 129.27 97.34 102.06 107.74 131.14 118. 78 120.30 110. 70 128.23 95.47 102.31 109.98 130.81 118. 94 120.06 111.51 127. 82 97.29 99.29 110.08 126.10 116.85 118.82 106. 92 125. 97 95.06 99.54 111. 11 127. 53 117.14 119.11 107. 73 125.87 96.59 97.66 111.28 124.68 115.87 117.14 106.80 125.26 94.37 96.14 108. 61 126.16 115.46 116.31 107.06 125.66 93.96 95. 65 105. 42 126. 81 115.46 116.03 107. 20 125.46 94.37 95.89 105.00 124.68 115. 34 117. 58 105.18 125. 46 93.09 93.38 104.08 119. 74 112.48 112. 75 104.19 121. 77 93.02 89.50 100. 01 121.13 108.65 109. 45 100.69 117.26 89.84 Average weekly hours Transportation and public utilities: Railroad transportation: Local and interurban passenger transit: Local and suburban transportation. Intercity and rural buslines............ Motor freight transportation and storage_________________________ Pipeline transportation...... ........... ........ Communication: Telephone communication_______ Telegraph communication 4____ _ Radio and television broadcasting . Electric, gas, and sanitary services___ Electric companies and systems__ Gas companies and systems............ Combined utility systems----------Water, steam, and sanitary systems. 43.2 41.1 43.3 42.5 42.4 43.1 41.8 42.5 42.1 41.7 41.9 41.7 41.7 43.3 41.6 43.9 42.2 41.4 42.1 41.6 42.0 42.4 42.1 44.4 42.8 45.9 42.4 44.9 43.0 43.5 42.8 42.7 42.6 41.8 42.8 41.1 42.9 42.8 43.1 42.6 41.1 40.1 41.0 40.3 40.7 41.0 41.5 41.4 41.2 40.3 41.5 39.9 42.1 40.8 42.1 40.4 41.9 41.5 41.9 40.7 41.4 40.3 41.2 40.2 41.0 40.0 41.6 40.3 41.5 40.8 39.8 41.2 39.4 41.0 41.0 40.8 41.2 41.0 39.8 41.4 39.5 41.1 40.9 41.1 41.3 41.2 39.5 41.4 39.5 41.1 41.1 41.1 41.1 41.2 39.9 41.3 39.2 41.5 41.5 41.6 41.7 40.8 40.9 41.0 39.4 41.2 41.2 41.0 41.3 40.9 40.5 41.6 39.5 41.1 41.2 41.0 41.1 40.8 40.6 42.3 39.4 41.3 41.4 41.3 41.1 41.4 40.2 42.5 38.8 41.0 41.4 40.5 40.9 40.8 40.3 42.9 39.0 41.1 41.5 40.5 41.0 41.1 39.7 42.8 38.6 40.8 41.1 40.3 40.8 40.5 39.4 43.1 38.7 40.8 41.1 40.4 408 40.5 39.2 42.0 38.9 40.8 41.0 40.3 41.0 40.5 39.3 42.0 38.6 40.9 41.4 40.3 41.0 40.3 39.4 41.8 38 5 40.9 41.0 40.7 41.0 40.8 39 6 42.2 38.7 41.0 41.3 40.6 41.0 41.4 Average hourly earnings Transportation and public utilities: Railroad transportation: Local and interurban passenger transit: Local and suburban transportation. $2.41 2.85 Intercity and rural buslines______ Motor freight transportation and 2.78 storage_________________________ 3.40 Pipeline transportation_____________ Communication: 2.5c Telephone communication_______ 2.6( Telegraph communication 4______ Radio and television broadcasting— 3.3i 2.92 Electric, gas, and sanitary services......... 2.9Î Electric companies and systems__ 2.75 Gas companies and systems______ 3.14 Combined utility systems_______ 2.38 Water, steam, and sanitary systems. See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2.73 $2.78 $2.73 $2.74 $2.72 $2.66 $2.68 $2. 67 $2.67 $2. 61 $2.42 2.84 $2.39 2.85 $2.39 2.81 $2. 39 2.83 $2.39 2.81 2.38 2.83 2.36 2.82 2.37 2.82 2.36 2.80 2.35 2. 76 2.35 2.76 2.32 2.74 2.29 2.62 2.20 2. 47 2.78 3.44 2.74 3.38 2.71 3.37 2. 75 3.27 2.7c 3.26 2.75 3.31 2.74 3.22 2. 74 3.31 2.73 3.28 2.72 3.23 2.72 3.23 2.70 3.26 2.60 3.27 2.61 3.09 2.54 2.61 3.34 2.92 2.92 2.76 3.14 2.39 2. 5c 2. 61 3.40 2. 91 2.93 2. 71 3.13 2.37 2.54 2.59 3.34 2.92 2.93 2.75 3.14 2.37 2.52 2.58 3.37 2.90 2.91 2.71 3.13 2.38 2.55 2. 59 3.32 2.89 2.92 2. 7( 3.12 2.34 2. 52 2.60 3.32 2.88 2. 90 2. 7( 3.11 2.35 2.47 2. 59 3.25 2.85 2.87 2.6' 3.08 2.33 2. 47 2. 59 3.27 2.85 2.87 2. 66 3.07 2.35 2.46 2.60 3.23 2.84 2.85 2.65 3.07 2.33 2.44 2. 52 3.26 2.83 2.83 2. 65 3.08 2.32 2. 44 2.51 3. 26 2. 83 2.83 2.66 3.06 2.33 2.44 2.50 3.23 2. 82 2.84 2.6] 3.06 2. 31 2.37 2. 49 3.11 2.75 2. 75 2. 56 2.97 2.28 2.26 2.37 3.13 2.65 2.65 2.48 2.86 2.17 752 MONTHLY LABOR REVIEW, JUNE 1963 T able C -l. Gross hours and earnings of production workers,1 by industry—Continued 1963 1962 Annual average Industry M ar.2 Feb. Jan. Deo. Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Wholesale and retail trad e8__________ Wholesale trade___________________ Motor vehicles and automotive equipment....... ....................... Drugs, chemicals, and allied prod ucts____ _____ ____________ Dry goods and apparel................ Groceries and related products.. Electrical goods_____________ Hardware, plumbing, and heating goods______________________ Machinery, equipment, and sup plies.................. .......................... Retail trade 1__ ____ ______________ General merchandise stores______ $76. 42 $76.42 $76.23 $75.47 $75. 65 $75. 46 $76. 05 $76. 44 $76. 44 $75. 86 $74. 88 $74. 31 $74. 50 $72.94 98.17 97.93 97.36 98.74 97.44 97.03 98.09 96.87 97.10 96.87 96.22 95.82 95.18 93.56 93.15 92.74 92.96 93.83 93.41 93. 86 93.86 93. 26 93.04 92.84 93. 46 92.84 91.98 89.46 100.00 99.75 98.40 99.45 99.70 98.80 99.94 97.84 98.09 96. 96 96.47 97.04 96. 24 94.24 91.72 91.96 91.10 92.58 92. 12 92. 74 93. 25 92.74 91. 99 91.37 91.85 94. 96 94.35 92. 86 91.43 90. 98 91.05 92.20 91. 96 91.30 92. 35 91.96 91.70 90. 49 89. 66 88. 60 87. 78 87.14 102.21 102.87 102.56 103. 48 102.97 102. 97 102. 91 100. 04 101.84 100.12 100.12 100.37 100.12 97. 53 93.96 93.50 94.66 95.30 94. 54 94.60 94.83 92.92 93.79 92. 57 92.80 92.03 90. 50 89.91 $70.98 91.13 106. 75 106.08 105.93 108.65 106.19 105.37 107.38 103. 98 103.66 106.04 104.14 102.75 101.84 101. 59 66.93 66.93 67. 30 66. 85 66.38 66. 55 66. 88 67. 55 67.38 66.85 65.98 65.42 65.39 64.01 52.86 52.51 52.86 54.06 51.68 52.67 53.48 53.35 53. 55 53.09 52.48 52. 29 51.75 50. 52 57. 29 56.45 57.46 58.06 55. 61 57.80 58. 82 58.12 58.12 58.13 57. 28 56. 77 58.07 55. 04 39.36 39.16 38.96 39. 56 38. 32 38. 20 39.15 40. 00 39.98 39.12 38.16 38. 44 38.96 37. 28 Food stores...... .......................... 65.42 64. 54 64. 91 64.95 65. 66 64. 94 65. 50 66.25 60. 43 65 16 63.88 63. 35 63.00 63. 01 Grocery, meat, and vegetable stores_________________ 66. 66 66.12 66. 69 66. 36 67. 45 66. 53 66. 95 67.71 68. 26 67.15 65. 86 64. 77 64. 77 64. 44 53.85 54.19 55.36 56.05 53. 54 53. 35 54.13 54.82 54. 87 54.13 53.35 52. 88 52.63 52. 40 64.03 64.78 66. 77 67.23 64. 06 64. 59 65. 45 66.70 67.44 64. 93 65. 65 64. 75 63. 44 Women’s ready-to-wear stores.. 48.19 48.38 49.35 50.05 48.10 48.05 48.33 48.23 48. 85 48.08 47. 57 47. 24 46. 84 84.67 46.24 Family clothing stores_______ 53. 50 53. 55 53. 94 54. 96 52. 55 52. 00 53.04 63. 58 53.64 53.04 51.60 51.83 50.69 51. 98 55.59 55.61 56.45 57.61 54.28 53. 77 56. 95 56.83 57.93 56. 28 55. 23 53.80 54. 94 52.81 09.80 62.37 48. 88 53. 09 35. 53 00.98 80.53 91.20 90.68 84.67 95.11 86.36 62.95 51.30 63. 29 44.41 51.01 52.33 Average weekly hours Wholesale aDd retail trade 8___________ Wholesale trade_________________ Motor vehicles and automotive equipment_________________ Drugs, chemicals, and allied prod ucts_________ _____________ Dry goods and apparel_________ Groceries and related products___ Electrical goods_______________ Hardware, plumbing, and heating goods.......................................... Machinery, equipment, and sup plies______________________ Retail trade 8........................................ General merchandise stores______ Department stores__________ Limited price variety stores..., Food stores..____ ____________ Grocery, meat, and vegetable stores____ _____________ Apparel and accessories stores____ Men’s and boys’ apparel stores. Women’s ready-to-wear stores Family clothing stores_______ Shoe stores............................... 38.4 40.4 38.4 40.3 38.5 40.4 38.9 40.8 38.4 40.6 38.5 40. 6 38.8 40.7 39.2 40.7 39.2 40.8 38.9 40.7 38.6 40.6 38.5 40.6 38.6 40.5 38.8 40.5 39.0 40.5 41.4 41.4 41.5 41.7 41.7 41.9 41.9 42.2 42.1 42.2 42.1 42.2 42.0 42.0 41.8 40.0 37.9 41.0 40.4 39.9 38.0 40.8 40.5 40.0 37.8 41.2 40.7 40.1 38.1 42.1 40.9 40.2 37.6 41.8 40.7 40.0 37.7 41.5 40.7 40.3 37.3 41.6 41.0 40.1 37.7 41.8 40. 5 40.2 37.7 41.9 40.9 39.9 37.6 41.7 40.7 39.7 37.8 41.7 40.7 40.1 38.6 41.4 40.8 40.1 38.2 41.2 40.7 40.1 37.9 41.3 40.3 40.0 38.1 41.3 40.3 40.5 40.3 40.8 40.9 40.4 40.6 40.7 40.4 40.6 40.8 40.7 40.9 40.4 40.5 40.4 40.9 37.6 34.1 33.7 32.0 34.8 40.8 37.6 34.1 33.6 32.1 34.7 40.9 37.6 34.1 33.6 32.2 34.9 41.0 38.2 35.8 35.4 34.1 35.3 41.0 37.5 34.0 33.5 32.2 35.3 41.0 37.6 34.2 34.0 32.1 35.1 41.3 38.0 31.5 34.4 32.9 35.6 41.1 38.6 35.1 34.8 33.9 36.4 41.3 38.5 35.0 34.8 33.3 36.5 41.1 38.2 34.7 34.6 32.6 35.8 41.0 37.7 34.3 34.3 31.8 35.1 41.1 37.6 34.4 34.2 32.3 35.0 40.9 37.8 34.5 34.4 32.2 35.0 40.8 38.1 34.6 34.4 32. 7 35.8 40.9 38.5 34.7 34. 7 32. 6 86 3 34.9 34.3 36.8 33. 7 35.2 32.7 34.8 34.3 36.6 33. 6 35.0 33.5 35.1 34.6 37.3 33.8 34.8 33.4 35.3 35.7 38.2 35.0 36.4 33.3 35.5 34.1 36.4 33.4 34.8 32.5 35.2 34.2 36.7 33.6 34.9 32.2 35.8 34.7 37.4 33.8 35.6 33.5 36.6 35.6 37.9 31.7 36.2 35.3 36.7 35.4 38.1 34.4 36.0 34.9 36.1 34.7 37.1 34.1 35.0 33.3 35.3 34.2 37.3 33.5 35.1 32.3 35.2 33.9 37.0 33 5 35.5 31.1 35.2 34.4 37.1 33.7 35.2 33.5 36.0 34.7 37.6 34.0 36.1 32.8 36.0 34.9 37.9 33.9 36.7 32 5 $1.95 2.38 $1.94 2.37 $1.93 2.36 $1.93 2.35 $1.88 2.31 $1.82 2.35 Average hourly earnings Wholesale and retail trade 8____________ $1.99 Wholesale trade___________ _______ _ 2.43 Motor vehicles and automotive equipment__________________ 2.25 Drugs, chemicals, and allied prod ucts________________________ 2.50 Dry goods and apparel__________ 2. 42 Groceries and related products____ 2.23 Electrical goods________________ 2. 53 Hardware, plumbing, and heating goods............................................... 2.32 Machinery, equipment, and sup2. 61 Retail trade..... ........................................ 1.78 General merchandise stores______ 1.55 Department stores__________ 1. 70 Limited price variety stores__ 1.23 Food stores____________________ 1.88 Grocery, meat, and vegetable stores____________________ 1.91 Apparel and accessories stores____ 1.57 M en’s and boys’ apparel stores. 1.74 Women’s ready-to-wear stores.. 1.43 Family clothing stores_______ 1.52 Shoe stores____ ____________ 1.70 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $1.99 2.43 $1.98 2.41 $1.94 2. 42 $1.97 2. 40 $1.96 2.39 $1.96 2.41 $1. 95 2.38 $1.95 2.38 2.24 2.24 2.25 2.24 2. 24 2.24 2.21 2.21 2.20 2.22 2.20 2.19 2.13 Z07 2. 50 2.42 2.23 2. 54 2.46 2.41 2.21 2.52 2.48 2. 43 2.19 2.53 2. 48 2. 45 2. 20 2. 53 2. 47 2. 46 2.20 2.53 2. 48 2. 50 2. 22 2.51 2.44 2. 46 2.20 2.47 2.44 2.44 2.19 2. 49 2.43 2. 43 2.17 2. 46 2. 43 2.43 2.15 2.46 2. 42 2. 46 2.14 2. 40 2. 40 2.47 2.13 2.46 2.35 2. 45 2.11 2.42 2.28 2.38 2.05 2.30 2.32 2.32 2.33 2.34 2.33 2.33 2.30 2.31 2. 28 2.28 2. 25 2. 24 2.22 2.15 2.60 1.78 1. 54 1.68 1.22 1.86 2.59 1.79 1. 55 1.71 1.21 1.86 2.65 1.75 1.51 1.64 1.16 1.84 2.59 1.77 1.52 1.66 1.19 1.86 2. 57 1.77 1.54 1.70 1.19 1.85 2.60 1.76 1.55 1.71 1.19 1.84 2.53 1.75 1.52 1.67 1.18 1.82 2. 51 1.75 1.53 1.67 1.20 1.82 2. 58 1.75 1.53 1.68 1.20 1. 82 2. 54 1. 75 1 53 1.67 1.20 1.82 2.50 1.74 1.52 1.66 1.19 1.81 2.49 1. 73 1.50 1.63 1.21 1.80 2. 49 1.68 1.46 1.60 1.14 1.76 2.44 1.62 1.40 1.53 1.09 1.68 1.90 1.58 1.77 1.44 1. 53 1.66 1.90 1.60 1.79 1.46 1.55 1.69 1.88 1.57 1.76 1.43 1.51 1.73 1.90 1. 57 1. 76 1.44 1.51 1. 67 1.89 1.56 1. 76 1.43 1.49 1.67 1.87 1. 56 1.75 1.43 1.49 1.70 1.85 1.54 1.76 1.39 1.48 1.61 1.86 1.55 1.77 1.42 1.49 1.66 1.86 1 56 1. 75 1.41 1.49 1,69 1 86 1.56 1.76 1. 42 1.47 1. 71 1.84 1.56 1. 75 1 41 1.40 1.73 1.84 1.53 1. 71 1.39 1.44 1.64 1. 79 1.51 1. 72 1.30 1.44 1.61 1. 72 1.47 1.67 1.31 1.39 1.61 753 O.—EARNINGS AND HOURS T able C -l. Gross hours and earnings of production workers,1 by industry—Continued Annual average 1962 1963 Industry Mar.* Feb. Jan. Dec. Nov. Sept. Oct. Aug. July June May Apr. Mar. 1961 1960 Average weekly earnings Wholesale and retail trade «—Continued Retail trade »—Continued Furniture and appliance stores___ $80.79 Other retail trade_______________ 76.63 Motor vehicle dealers________ 93.96 Other vehicle and accessory dealers......... ........... ........ ........ 81.03 Drug stores................... ............ 57.72 Finance, insurance, and real estate: Banking___________ ______________ 74.23 Security dealers and exchanges..... ........ 116.01 Insurance carriers__________________ 95. 77 Life insurance__________________ 100. 68 Accident and health insurance____ 81.08 Fire, marine, and casualty in surance_____________________ 91.89 Services and miscellaneous: Hotels and lodging places: Hotels, tourist courts, and motels A 47.36 Personal services: Laundries, cleaning and dyeing plants.................. .................. ........ 50.95 Motion pictures: Motion picture filming and dis tributing____________________ 118.86 Wholesale and retail trade »—Continued Retail trade *—Continued Furniture and appliance stores___ Other retail trade_______________ Motor vehicle dealers............... Other vehicle and accessory dealers___________________ Drug stores___________ _____ Finance, insurance, and real estate: Banking................. ...................... ......... Security dealers and exchanges....... ...... Insurance carriers__________________ Life insurance__________________ Accident and health insurance___ Fire, marine, and casualty in surance_______ ______________ Services and miscellaneous: Hotels and lodging places: Hotels, tourist courts, and motels •_ Personal services: Laundries, cleaning and dyeing plants_______________________ Motion pictures: Motion picture filming and distrib uting_______________________ $80.40 $82.21 $83.63 $81. 39 $80.38 $81.38 $81. 56 $82.17 $80. 54 $79.90 $79. 93 $79.71 $77.64 76.63 76.82 77.19 76.63 76.22 75.76 76.68 76.49 76. 54 75.76 75.17 74.57 73.57 92.87 92.43 93.96 95.05 93.08 90.48 93.07 93.73 94.60 93.73 92.64 91.33 88.44 80.91 82.47 81.84 78. 58 79.64 80.70 81.77 81.51 80.70 80.15 79.82 79.02 78.59 57.88 58.40 58.30 57.31 57.31 57.72 58.75 58.06 57.13 56.58 56.06 56.06 55.80 $74.98 71.57 87.91 74.03 74.23 73.30 72.72 72.54 71.97 71.80 72.56 71.80 71.42 71.62 71.62 69.19 119.10 117.26 116.09 112. 66 109.10 111.25 110.68 116.29 123.73 117.09 120.03 119.37 133.35 95.79 95.41 94.60 94. 26 94.07 93.76 94.35 94.89 93.21 93.25 93.20 92.62 89.83 100.64 100.98 100.14 99. 57 99.44 98.92 100.61 100.82 98.65 98.70 98. 55 98.00 95.11 81.53 81.77 80.20 79.14 78.20 78.45 78.30 77.97 78.00 78.42 78.34 78.34 74.41 91.82 90.56 89.68 89.58 89.44 89.27 88.50 89. 71 88.32 88.09 88.23 87.72 85.14 67.15 117.12 87.41 93.32 71.33 77.26 63.34 81.96 47.62 47.36 47.62 47.99 47.72 46.05 45.89 45.94 47.64 46.77 46.29 46.53 45. 54 43.89 50.42 50.69 51.08 50.70 50.83 50.83 50.83 50.70 51.35 51.87 50.83 49.41 49.28 48.11 119.41 120.13 124.01 116.99 120.82 120.01 117.50 115.37 114.19 111.97 115.92 114.57 116.45 Average weekly hours 113.69 40.6 41.2 43.7 40.4 41.2 43.6 40.7 41.3 43.6 41.4 41.5 43.7 40.9 41.2 43.6 40.8 41.2 43.7 41.1 41.4 43.5 41.4 41.9 43.9 41.5 41.8 43.8 41.3 41.6 44.0 41.4 41.4 43.8 41.2 41.3 43.7 41.3 41.2 43.7 41.3 41.8 44.0 41.2 42.1 44.4 43.8 36.3 43.5 36.4 44.1 36.5 44.0 36.9 43.9 36.5 44.0 36.5 44.1 37.0 44.2 37.9 44.3 37.7 44.1 37.1 43.8 36.5 44.1 36.4 43.9 36.4 44.4 37.2 44.4 37.3 37.3 37.2 37.3 37.4 37.1 37.2 37.1 37.2 37.4 37.2 37.2 37.3 37.3 37.0 37.1 38.5 38.4 38.5 38.4 38.7 38.8 38.7 39.9 39.6 39.7 39.3 38.9 39.1 39.6 39.9 38.6 38.2 38.4 38.7 38.7 39.1 39.1 39.1 39.3 39.5 39.9 39.4 38.6 38.8 38.8 f Average hourly earnings Wholesale and retail trade »—Continued Retail trade »—Continued Furniture and appliance stores___ $ 1.99 $ 1.99 Other retail trade 1.86 1.86 2.13 Motor vehicle dealers 2.15 Other vehicle and accessory 1.86 dealers__________________ 1.85 1.59 1.59 Drug stores________________ Finance, insurance, and real estate: 1.99 Banking....... ... ........................................ 1.99 Services and miscellaneous: Hotels and lodging places: Hotels, tourist courts, and motels «_ 1.23 Personal services: Laundries, cleaning and dyeing plants 1.32 Motion pictures: Motion picture filming and distrib- $2.02 1.86 2.12 $2.02 1.86 2.15 $1.99 1.86 2.18 $1.97 1.85 2.13 $1.98 1.83 2.08 $1.97 1.83 2.12 $1.98 1.83 2.14 $1.95 1.84 2.15 $1.93 1.83 2.14 $1.94 1.82 2.12 $1.93 1.81 2.09 $1.88 1.76 2.01 $1.82 1.70 1.98 1.87 1.60 1.86 1.58 1.79 1. 57 1.81 1.57 1.83 1.56 1.85 1.55 1.84 1. 54 1.83 1.54 1.83 1.55 1.81 1.64 1.80 1.54 1.77 1.50 1.74 1.43 1.99 1.96 1.96 1.95 1.94 1.93 1.94 1.93 1.92 1.92 1.92 1.87 1.81 1.24 1.23 1.24 1.24 1.23 1.19 1.15 1.16 1.20 1.19 1.19 1.19 1.15 1.10 1.32 1.32 1.32 1.31 1.30 1.30 1.30 1.29 1.30 1.30 1.29 1.28 1.27 1.24 »^ForScomparability of data with those published in issues prior to Decem ber 1961, see footnote 1, table A-2. For employees covered, see footnote 1, table,A-3. 3Preliminary. * Based upon monthly data summarized in the M-300 report by the Inter state Commerce Commission, which relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICO Group D. 6S6133—(ÎÏÏ 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 Data relate to nonsupervlsory employees except messengers. » Excludes eating and drinking places. • Money payments only, additional value of board, room, uniforms, and tips not Included. S ouece: TJ.8. Department of Labor, Bureau of Labor Statistics for aU series except that for Class I railroads. (See footnote 3.) 754 T able MONTHLY LABOR REVIEW, JUNE 1963 C-2. Average weekly hours, seasonally adjusted, of production workers in selected industries1 1962 1963 Industry division and group Mar.J Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May M in in g .................................................................................... 40.8 41.6 41.3 40.6 41.1 41.1 41.3 41.2 40.9 40.6 41.0 41.5 41.3 Contract construction...................... ..................................... 37.6 36.6 36.5 35.4 37.3 37.2 37.7 37.3 37.4 36.7 37.5 36.6 37.3 Manufacturing......................................................................... 40.4 40.3 40.2 40.3 40.4 40.1 40.5 40.2 40.5 40.5 40.6 40.8 40.5 Durable goods................................................................. Ordnance and accessories........ ........ ............. ........... Lumber and wood products except furniture......... Furniture and fixtures................. ........................... Stone, clay and glass products_________________ Primary metal industries.......................................... Fabricated metal products........................................ Machinery.................................................................. Electrical equipment and supplies.......... ................ Transportation equipment....................................... Instruments and related products........................ . Miscellaneous manufacturing industries................. 41.0 41.0 39.5 40.4 41.2 40.6 41.2 41.5 40.3 41.7 40.9 39.6 41.0 41.5 40.1 40.6 40.7 40.7 41.3 41.7 40.5 41.9 41.0 39.7 40.7 41.2 40.0 40.5 40.4 40.2 41.2 41.6 40.3 41.6 40.6 39.4 41.1 41.6 39.7 40.4 40.5 40.2 40.8 41.6 40.3 42.3 41.2 39.5 41.1 41.4 39.7 40.6 40.9 40.1 41.3 41.7 40.5 42.9 40.9 39.3 40.7 41.1 39.4 40.5 41.0 39.7 41.1 41.5 40.5 42.2 40.7 39.4 41.0 41.2 40.2 40.8 41.3 39.9 41.0 41.7 40.6 42.4 40.8 40.0 40.9 41.4 40.3 40.5 41.2 39.7 41.0 41.9 40.5 41.5 41.0 39.7 41.0 40.9 40.4 40.6 41.4 39.6 41.1 41.8 40.7 42.1 40.8 39.8 41.0 41.5 39.6 41.3 41.0 39.6 41.4 41.8 40.7 41.9 41.1 39.9 41.1 41.3 40.2 41.3 41.2 39.9 41.3 41.9 40.7 42.2 41.1 40.1 41.3 41.8 39.7 41.5 41.1 40.9 41.5 42.0 41.1 42.1 41.2 40.3 41.0 41.5 39.3 40.9 40.9 40.9 41.3 41.7 40.7 41.5 40.6 40.1 Nondurable goods....... ..................... ............................... Food and kindred products.... ........ ................... . Tobacco manufactures............................................... Textile mill products________________ ___ _ . . Apparel and related products_________________ Paper and allied products....... ................................. Printing, publishing and allied industries............... Chemicals and allied products...... ......................... Petroleum refining and related Industries........... Rubber and miscellaneous plastic products............ Leather and leather products....... ............................ 39.8 41.1 39.1 40.4 36.6 42.7 38.4 41.4 40.9 41.1 36.8 39.5 40.9 37.5 40.1 36.1 42.7 38.3 41.4 41.0 41.0 36.8 39.4 40.7 38.5 40.0 35.8 42.5 38.1 41,3 41.8 40.9 36.8 39.6 40.9 39.0 40.2 36.4 42.8 38.3 41.4 41.9 41.0 37.4 39.4 41.0 39.4 39.9 36.1 42.5 38.1 41.4 41.6 40.9 36.9 39.3 40.7 38.7 40.0 35.8 42.2 37.9 41.5 41.8 40.6 36.9 39.7 41.1 39.5 40.3 36.4 42.6 38.3 41.5 42.1 41.0 37.8 39.4 40.7 37.4 40.3 36.1 42.5 38.3 41.5 41.7 40.5 37.5 39.8 41.6 37.1 40. 7 36.4 42.7 38.3 41.5 41.7 40.5 37.6 40.0 41.1 37.9 41.0 36.8 42.8 38.4 41.6 41.7 41.5 38.0 40.1 41.3 38.6 41.3 36.6 42.6 38.4 41.7 41.6 41.5 38.0 40.2 41.2 39.6 41.5 37.1 42.7 38.6 41.7 41.3 41.8 38.6 39.9 40.9 39.6 40.9 36.7 42.7 38.5 41.5 40.9 41.0 37.9 Wholesale and retail trade 8........... ........................................ Wholesale trade......... ................. .................................... Retail trade 8................................. ................... ............. . 38.6 40.6 37.8 38.7 40.5 37.9 38.7 40.4 37.8 38.7 40.6 38.0 38.7 40.6 37.9 38.6 40.5 37.8 38.7 40.6 38.0 38.7 40.6 37.9 38.7 40.6 37.9 38.7 40.7 37.9 38.8 40.7 38.0 38.7 40.8 37.8 38.8 40.7 38.0 i For employees covered, see footnote 1, table A-3. 8 Preliminary. 8 Excludes eating and drinking places. T able Apr. Mar. N ote: The seasonal adjustment method used is described in “New Seasonal Adjustment Factors for Labor Force Components,” Monthly Labor Review, August 1960, pp. 822-827. x C-3. Average hourly earnings excluding overtime of production workers in manufacturing, by major industry group 1 1962 1963 Annual average Major industry group Mar.8 Feb. Jan. Dec. Manufacturing...................... ...................... $2.36 $2.36 $2.36 $2.35 Durable goods_____________________ Ordnance and accessories.................... Lumber and wood products except furniture______________________ Furniture and fixtures_____________ Stone, clay, and glass products............. Primary metal industries____ ______ Fabricated metal products.................... Machinery______________________ Electrical equipment and supplies___ Transportation equipment_________ Instruments and related products____ Miscellaneous manufacturing IndusNondurable goods__________________ Food and kindred products_________ Tobacco manufactures........................ Textile mill products______________ Apparel and related products_______ Paper and allied products.................... Printing, publishing, and allied indus tries............................ ..................... Chemicals and allied products_______ Petroleum refining and related indus tries__________________________ Rubber and miscellaneous plastic products__________ ___________ Leather and leather products_______ Nov. Sept. Aug. July June May Apr. Mar. 1961 1960 $2.31 $2.29 $2.31 $2.31 $2.31 $2.31 $2.31 $2.25 $2.20 2. 53 2.83 2.53 2.82 2.52 2.81 2.52 2.78 2.50 2.78 2.48 2. 76 2.48 2. 77 2.46 2. 75 2. 47 2. 75 2.47 2.76 2.47 2.76 2.48 2.76 2.48 2. 75 2.42 2.71 2.36 2.60 1.88 1. 91 2. 36 2. 93 2.50 2.66 2.39 2.87 2.42 1. 89 1.90 2.36 2.92 2.50 2.66 2.39 2.86 2.42 1.89 1.90 2. 36 2.91 2.49 2.65 2.38 2.86 2.40 1.92 1.90 2.36 2. 90 2.49 2.65 2.38 2. 86 2.40 1.93 1.89 2.35 2.89 2.48 2. 64 2.36 2.84 2. 40 1.91 1.89 2.33 2.89 2.47 2.63 2.35 2.83 2.39 1.93 1.88 2.33 2.89 2.48 2.62 2.35 2.83 2 38 1.91 1.88 2.32 2.88 2. 46 2.60 2.33 2.80 2.37 1.91 1.88 2.32 2.88 2.47 2.60 2.34 2.80 2.37 1. 91 1.88 2.32 2. 88 2. 46 2. GO 2.34 2.78 2.37 1.89 1.89 2.30 2.89 2.47 2.60 2.34 2. 78 2.38 1.90 1.88 2.31 2.92 2.46 2.60 2.34 2. 77 2.37 1.87 1.88 2.30 2.92 2.45 2. 59 2.32 2.77 2.36 1.88 1.86 2.25 2.84 2.42 2.54 2.30 2.72 2.32 1.82 1.82 2.20 2.75 2.36 2.47 2.23 2.65 2.26 $2,33 $2.32 1.97 1.98 1.98 1.96 1.92 1.91 1.90 1.90 1.92 1.91 1.91 1.92 1.92 1.87 1.84 2.14 2.24 1.94 1.64 1.66 2.33 2.13 2.23 1.91 1.64 1.65 2. 33 2.14 2.22 1.88 1.63 1.66 2. 33 2.12 2.20 1.85 1.63 1.64 2.32 2.11 2.17 1.83 1. 63 1.64 2.31 2.10 2.15 1.68 1.63 1.64 2.31 2.10 2.13 1.67 1.62 1.65 2.30 2.09 2.13 1.78 1.62 1.64 2.30 2.10 2.13 1.95 1.62 1.63 2.29 2.10 2.16 1.96 1.62 1.62 2.28 2.09 2.16 1.95 1.62 1.63 2.27 2.09 2.17 1.93 1.62 1.64 2.27 2.09 2.17 1.88 1.61 1.65 2.27 2.05 2.09 1.74 1. 57 1.61 2.23 1.99 2.02 1.67 1.56 1.56 2.15 (3) 2.61 (3) (3) 2.62 2.62 3.10 3.06 3.07 2. 40 1.72 2.40 1.70 .41 1.71 («) 2.62 m (8) (31 2. 61 2.60 2.59 2.99 2.98 2.96 2.41 1.70 2.39 1.71 2.38 1.70 1 For comparability of data with those published in issues prior to Decem ber 1961, see footnote 1, table A-2. For employees covered, see footnote 1, table A-3. Average hourly earnings excluding overtime are derived by as suming that overtime hours are paid for at the rate of time and one-half. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Oct. (3) i8) i8) (3) (*) (8) (») (*) 2. 59 2.58 2.57 2. 54 2.53 2.53 2.51 2.43 2.96 2. 95 2.97 2.95 2.95 2.97 2.97 2.94 2.82 2.38 1.70 2.38 1.69 2.40 1.68 2.38 1.69 2.36 1.69 2.35 1.69 2.34 2.32 1.65 2.26 1.61 1.68 8 Preliminary. 8 Not available because average overtime rates are significantly above time and one-half. Inclusion of data for the group in the nondurable goods total has little effect. 755 O.—EARNINGS AND HOURS T able C-4. Average overtime hours of production workers in manufacturing, by industry 1 Annual average 1962 1963 Industry Manufacturing............................................. Durable goods----------------------------Nondurable goods________________ Mar.* Feb. Jan. Dee. Nov. Oet. Sept. Aug. July June May Apr. Mar. 1961 I960 2.6 2.7 2.6 2.5 2.6 2.5 2.5 2.6 2.4 2.9 3.1 2.7 2.9 3.0 2.8 2.8 2.9 2.7 3.0 3.1 2.9 2.8 2.8 2.7 2.8 2.8 2.8 2.9 3.0 2.9 2.8 2.8 2.8 2.7 2.7 2.6 2.6 2.7 2.6 2.4 2.3 2.5 2.4 2.4 2.5 2.1 1.7 2.0 2.5 2.4 2.4 2.2 2.6 2.7 2.4 2.9 2.9 3.1 2.7 4.0 2.9 2.6 2.0 3.4 2.7 2.4 2.1 2.8 2.5 2.2 1.7 2.7 2.5 2.2 1.9 2.8 2.1 2.3 2.0 3.0 2.2 2.1 1.8 2.4 2.4 2.1 1.9 2.4 2.2 2.5 2.0 3.1 2.6 2.4 1.6 3.2 2.7 1.9 1.6 2.2 2.1 2.0 1.7 2.7 1.8 2.9 2.9 2.9 2.9 2.8 2.9 3.0 2.9 2.9 2.9 3.2 3.2 3.8 3.6 3.7 3.6 3.5 3.4 3.5 3.4 3.3 3.5 3.0 3.0 2.8 2.7 2.9 2.9 2.9 3.0 3.3 2.6 2.8 2.5 2.8 1.7 1.4 2.0 3.0 1.2 3.4 1.9 2.7 1.8 4.5 2.6 2.5 1.8 3.5 2.9 3.0 2.2 2.7 2.5 2.7 1.8 1.7 2.0 2.7 1.5 3.3 1.7 2.5 1.6 3.6 2.5 2.4 1.5 3.6 2.8 2.8 1.9 2.5 2.5 2.7 1.8 1.9 2.1 2.7 1.5 3.3 1.6 2.4 1.7 3.5 2.3 2.3 1.3 3.1 2.8 3.3 2.4 2.7 3.3 3.7 2.2 1.6 2.9 2.9 1.8 3.8 1.3 2.5 1.9 3.8 2.4 2.3 1.1 3.5 2.9 3.2 2.5 2.7 3.0 3.2 1.6 2.5 2.9 3.4 2.2 3.6 1.7 2.9 2.1 5.0 2.7 2.1 1.0 3.0 2.8 3.2 2.8 3.0 3.3 3.4 2.0 3.7 2.8 3.7 1.5 3.5 1.8 3.0 2.3 6.0 2.7 2.0 .9 2.9 2.3 3.8 3.2 3.1 3.4 3.4 2.4 4.6 3.2 3.9 2.0 3.4 2.3 3.1 2.0 6.4 2.9 2.2 1.3 2.7 3.0 3.7 3.3 3.1 3.2 3.2 2.0 4.0 3.4 3.9 1.6 3.4 2.1 3.2 2.1 6.7 2.8 1.9 .9 2.5 3.1 3.5 4.0 2.8 2.7 2.6 2.4 3.6 2.6 3.8 1.8 3.8 2.1 3.2 1.7 6.3 2.7 2.0 1.1 2.8 2.6 3.5 3.4 3.2 3.1 3.1 2.4 3.6 3.0 3.7 1.6 3.7 1.8 2.9 1.6 6.3 2.9 2.3 1.1 3.4 2.9 3.4 3.3 3.0 2.5 2.6 1.7 2.8 2.4 3.6 1.3 3.5 1.9 3.2 1.2 6.2 2.8 2.0 1.0 3.2 2.3 3.3 2.9 3.1 2.7 2.9 1.8 2.2 2.4 3.2 1.0 3.3 1.6 2.8 1.3 5.2 2.6 2.3 1.7 2.8 2.2 3.0 2.8 3.1 2.7 2.9 2.1 2.2 2.2 2.8 1.4 3.4 1.4 2.6 1.6 4.1 2.4 2.5 2.0 3.0 2.3 2.8 2.5 2.6 2.4 2.4 2.0 2.4 2.5 3.1 2.1 3.6 1.5 2.7 1.5 5.0 2.3 1.9 1.3 2.1 2.5 2.6 2.6 2.7 2.5 2.5 2.3 2.3 2.7 3.1 2.4 3.6 1.6 2.7 1.5 4.8 2.4 1.8 1.3 2.1 3.0 3.3 3.1 2.9 2.7 2.6 3.3 3.0 2.9 2.6 2.5 3.5 3.2 3.3 2.7 2.7 3.9 3.3 3.8 2.9 2.4 3.8 2.9 3.2 3.0 2.5 3.4 2.9 3.2 3.0 2.8 3.7 3.0 3.5 3.3 4.9 3.2 2.6 2.9 3.1 4.3 3.3 2.8 2.7 2.9 4.7 4.1 3.2 3.4 3.1 4.0 3.4 2.9 2.8 2.9 3.5 3.8 2.9 2.9 2.8 3.4 3.6 2.9 3.3 2.6 3.0 3.1 2.3 2.3 2.4 3.2 2.4 2.3 2.3 2.6 2.8 2.7 2.6 2.9 3.1 3.1 2.4 2.5 2.1 2.3 2.9 2.8 2.3 2.0 2.0 2.1 1.7 2.2 3.5 3.2 3.2 2.7 1.7 2.1 3.9 3.2 2.8 2.8 1.8 2.0 4.0 3.4 3.2 2.9 2.0 2.3 4.3 3.6 3.5 3.0 1.9 2.5 3.7 3.8 3.3 2.9 2.5 2.6 3.6 3.8 3.6 3.1 2.5 3.0 4.2 4.1 3.6 3.2 2.2 3.0 3.6 3.7 3.1 3.0 1.9 2.8 3.6 3.2 2.8 2.7 2.2 2.8 4.0 3.4 3.7 3.1 1.6 2.6 3.8 3.6 3.3 2.9 1.4 2.3 4.0 3.3 3.6 3.0 1.4 2.0 4.1 3.4 3.0 2.9 1.5 2.3 2.6 2.9 2.8 2.7 1.4 2.4 2.5 3.7 2.7 2.6 2.5 3.3 2.8 2.7 2.4 2.3 3.0 2.6 2.5 2.3 2.4 2.8 2.0 2.0 2.2 2.6 3.1 2.5 1.9 2.3 2.6 2.8 1.9 1.6 2.2 2.7 2.9 1.9 1.8 2.5 2.7 3.0 2.3 2.1 2.7 2.5 3.0 2.3 1.9 2.8 2.2 3.2 2.1 1.7 3.0 2.7 3.4 2.3 2.1 2.9 2.6 3.3 2.5 2.2 2.8 2.6 3.3 2.7 2.5 2.8 2.4 3.2 2.4 2.7 2.7 2.3 2.5 1.7 1.6 1.9 1.9 2.7 1.8 1.9 1.8 5.1 3.5 2.5 4.7 3.5 2.3 4.4 3.5 2.2 4.7 3.7 2.6 4.3 3.3 2.5 4.1 3.3 2.6 4.2 3.6 2.6 4.5 3.3 2.7 4.9 3.4 3.0 5.2 3.8 3.2 5.3 3.5 2.9 5.4 3.6 2.9 5.0 3.6 2.8 3.4 2.8 2.0 4.3 3.3 2.1 1.6 2.3 4.3 1.9 1.8 2.1 2.2 1.7 1.3 1.8 1.9 1.5 1.8 3.9 1.9 1.8 2.4 1.6 1.6 1.4 2.1 1.9 1.3 1.6 4.1 1.9 1.5 2.1 1.3 1.7 1.2 2.2 1.7 1.5 1.7 4.3 2.4 2.5 2.2 2.3 2.0 2.1 2.5 2.1 1.3 1.6 4.2 2.3 2.2 2.3 1.9 2.1 1.7 2.4 2.1 1.4 1.8 4.3 2.3 2.3 2.3 1.8 2.1 2.2 2.5 1.9 1.4 2.0 4.4 2.5 2.4 2.3 2.1 2.4 2.6 3.0 2.1 1.3 2.1 4.1 2.1 2.0 2.1 2.2 1.8 2.4 2.3 1.9 1.6 2.5 4.2 2.0 2.2 2.1 2.0 1.6 2.0 1.8 1.8 1.5 3.0 4.0 2.3 2.2 2.6 2.0 1.9 2.5 2.2 2.2 1.5 2.2 4.0 2.1 1.9 2.4 1.6 1.7 1.6 2.5 2.1 1.4 2.2 4.0 2.1 1.6 2.3 1.6 1.8 1.4 2.6 2.0 1.5 1.9 4.0 2.1 1.6 2.3 1.5 1.8 1.3 2.7 2.2 2.2 1.6 3.5 1.9 1.8 1.9 1.9 1.6 1.6 2.1 1.9 1.9 1.9 3.4 1.9 1.9 1.8 1.6 1.7 1.4 2. 5 1.6 1.8 3.0 3.6 2.2 3.1 2.4 2.9 2.3 2.3 2.6 3.0 3.3 2.6 3.3 1.6 2.6 2.2 2.3 3.4 3.3 3.8 2.8 3.1 1.6 1.8 2.2 28 3.8 4.6 6.1 3.2 3.4 1.5 2.1 2.5 3.1 3.7 4.5 5.9 3.2 3.0 1.2 1.9 2.5 2.7 3.5 3.9 4.9 3.2 2.9 1.7 2.7 2.5 2.8 2.9 3.6 4.5 3.0 2.5 1.7 3.0 2.5 2.9 2.3 3.1 3.6 2.7 3.0 2.1 3.3 2.4 2.7 3.1 3.3 4.0 2.5 2.8 1.8 2.5 2.4 2.7 3.3 3.3 3.9 2.6 2.7 2.5 3.6 2.5 2.6 3.2 3.4 4.0 2.7 2.9 2.8 3.5 2.2 2.2 3.0 3.0 3.4 2.5 2.6 2.7 2.8 2.3 2.0 2.8 2.8 2.9 2.8 2.5 2.4 1.5 2.3 2.1 2.1 2.5 2.6 2.4 2. 5 .9 1.8 2.1 2.2 1.9 2.7 3.2 2.2 2.4 1.2 1.7 2.1 2.8 2.0 2.5 1.9 2.3 1.9 2.0 2.6 2.1 2.5 1.7 2.3 2.5 2.3 2.5 2.3 2.0 2.5 2.1 2.3 2.5 1.9 2.2 1.9 2.3 2.0 2.2 1.9 2.0 1.9 1.8 2.1 3.0 1.7 1.9 3.2 1.7 1.6 3.1 1.5 2.2 3.0 1.8 2.2 3.4 2.0 2.4 2.7 2.1 2.5 2.7 2.1 2.5 2.5 2.0 2.4 2.6 1.6 2.3 2.8 2.3 2.1 2.9 1.7 2.5 3.2 2.1 2.2 3. 5 1.8 2.1 2.9 1.5 2.2 2. 5 1.0 D u r a b le goods Ordnance and accessories____________ Ammunition except for small arms----Sighting and fire control equipment---Other ordnance and accessories.......... Lumber and wood products except furniture............................................. Sawmills and planing mills................... Millwork, plywood, and related prod ucts__________________________ Wooden containers.............................. Miscellaneous wood products______ g* Furniture and fixtures________ ____ — Household furniture_____ ___ _____ Office furniture_________ ___ _____ Partitions; office and store fixtures....... Other furniture and fixtures_______ Stone, clay, and glass products________ Flat glass..............................-............... Glass and glassware, pressed or blown.. Cement hydraulic________________ Structural clay products............ .......... Pottery and related products-----------Concrete, gypsum, and plaster products. Other stone and mineral products__ Primary metal industries____________ Blast furnace and basic steel products... Iron and steel foundries____________ Nonferrous smelting and refining------Nonferrous rolling, drawing, and ex truding................................................ Nonferrous foundries............................. Miscellaneous primary metal industries. Fabricated metal products___________ Metal cans................... ......................... Cutlery, hand tools, and general hard ware_________________________ Heating equipment and plumbing fix tures_________________________ Fabricated structural metal products... Screw machine products, bolts, etc....... Metal stampings_________________ Coating, engraving, and allied services.. Miscellaneous fabricated wire products. Miscellaneous fabricated metal prod ucts............. ...........-........................... Machinery........... ................- ----- -------Engines and turbines______________ Farm machinery and equipment------Construction and related machinery— Metalworking machinery and equip ment........... ..................... -............... Special Industry machinery.................. General industrial machinery----------Office, computing and accounting ma chines________________________ Service industry machines-------- ------Miscellaneous machinery...................... Electrical equipment and supplies_____ Electric distribution equipment-------Electrical industrial apparatus______ Household appliances............... ........... Electric lighting and wiring equipment. Radio and TV receiving sets________ Communication equipment.................. Electronic components and accessories.. Miscellaneous electrical equipment and supplies..............................—............ Transportation equipment....... ............ Motor vehicles and equipment............. Aircraft and parts..................... .......... Ship and boat building and repairing— Railroad equipment.............................. Other transportation equipment.. . . . Instruments and related products--------Engineering and scientific instruments. Mechanical measuring and control de vices.................................................. Optical and ophthalmic goods.............. Surgical, medical, and dental equip ment________________ -............ — Photographic equipment and supplies.. Watches and clocks..... ......................... See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 756 MONTHLY LABOR REVIEW, JUNE 1963 T able C-4. Average overtime hours of production workers in manufacturing, by industry 1—Continued 1963 1962 Annual average Industry M ar.3 Feb Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr, Mar. 1961 §1960 Manufacturing—Continued Durable goods—Continued Miscellaneousmanufacturlngindustries Jewelry, silverware, and plated ware. Toys, amusement, and sporting goodsPens, pencils, office and art materials.. Costume jewelry, buttons, and notions. Other manufacturing industries_____ Nondurable goods Food and kindred products___________ Meat products____________________ Dairy products....................................... Canned and preserved food, except meats. Grain mill products________________ Bakery products__________________ Sugar___ ________ _______________ Confectionery and related products__ Beverages............................................... . Miscellaneous food and kindred prod ucts....................................................... Tobacco manufactures___ Cigarettes........ .............. Cigars___________ . . . . Textile mill products_________________ Cotton broad woven fabrics_________ Silk and synthetic broad woven fabrics. Weaving and finishing broad woolens.. Narrow fabrics and smallwares_____ _ Knitting____________ _____________ Finishing textiles, except wool and knit. Floor covering____________________ Yarn and thread..................................... Miscellaneous textile goods_________ Apparel and related products__________ Men’s and boys’ suits and coats______ M en’s and boys’ furnishings_____ . . . . Women’s, misses’, and juniors’ outer w ear.._________________________ Women’s and children’s undergar ments__________________________ Hats, caps, and millinery______ _____ Girls’ and children’s outerwear_______ Fur goods and miscellaneous apparel__ Miscellaneous fabricated textile prod ucts__ __________ ______________ Paper and allied products_____________ Paper and pulp______________ _____ Paperboard.............................. .............. Converted paper and paperboard prod ucts......................... ........................ . Paperboard containers and boxes_____ Printing, publishing, and alliedindustries. Newspaper publishing and printing__ Periodical publishing and printing____ Books___________________ ________ Commercial printing______________ Bookbinding and related industries___ Other publishing and printing indus tries_____ _____________________ Chemicals and allied p roducts.._______ Industrial chemicals________________ Plastics and synthetics, except glass__ D r u g s ....................................... ........... . Soap, cleaners, and toilet goods______ Paints, varnishes and allied products.. Agricultural chemicals______________ Other chemical products____________ Petroleum refining and related industries. Petroleum refining_________________ Other petroleum and coal products___ Rubber and miscellaneous plastic prod ucts....................................................... Tires and inner tubes......... .................... Other rubber products____ _________ Miscellaneous plastic products_______ Leather and leather products__________ Leather tanning and finishing_______ Footwear, except rubber____________ Other leather products....... ........... ........ 2.1 2.5 1.7 2.0 2.3 2.3 2.0 2.5 1.7 1.9 1.7 2.3 2.4 4.1 1.5 2.1 2.2 2.5 2.3 3.4 2.1 1.8 1.9 2.5 2.6 3.4 2.3 3.1 2.0 2.6 2.6 3.2 2.4 2.2 2.1 2.9 2.3 2.7 1.9 2.2 2.4 2.5 1.9 2.2 1.6 1.6 2.0 2.1 2.3 2.9 2.0 1.6 3.0 2.4 2.4 3.1 2.2 1.9 2.5 2.3 2.2 2.9 1.8 1.9 2.5 2.3 2.3 3.0 2.0 1.9 2.2 2.6 2.1 3.1 3.2 3.3 2.2 5.1 2.6 3.0 2.2 2.7 3.0 2.9 3.0 2.2 5.6 2.7 3.2 2.3 2.4 3.1 3.4 3.0 2.2 5.7 2.6 3.4 2.3 2.3 3.4 4.2 3.2 2.2 6.1 2.9 3.2 3.0 2.5 3.6 4.5 3.2 2.1 6.4 3.3 4.5 3.1 2.5 3.4 3.8 3.2 2.3 6.9 3.1 2.9 3.3 2.5 3.9 3.8 3.7 3.4 7.0 3.7 4.9 3.4 3.2 3.4 3.1 3.4 2.6 6.9 3.3 4.4 2.6 3.1 3.9 3.9 4.0 3.5 6.9 3.4 4.6 1.7 4.0 3.6 3.8 3.8 2.5 6.5 3.4 4.7 2.0 3.3 3.5 3.9 3.6 2.5 6.2 3.1 3.9 1.9 3.2 3.1 3.3 3.3 2.3 5.4 2.8 3.6 1.7 2.6 3.0 2.9 3.0 2.1 6.1 2.9 2.6 2.1 2.6 3.3 3.7 3.1 2.4 3.8 8 .7 2.9 4.5 2.5 2.8 2.9 4.2 2 .4 2.8 3.8 .8 1.0 .8 3.1 3.0 3.9 3.6 3.0 1.8 4.6 5.1 3.1 3.3 1.4 1.3 1.1 4.0 .7 .5 1.1 3.0 2.9 3.9 3.7 3.0 1.7 4.2 4.9 2.9 3.4 1.2 1.3 1.0 3.9 .6 .5 .7 2.8 3.0 4.0 3.4 3.3 1.6 3.1 3.3 2.5 3.2 1.0 1.1 .9 4.3 1.1 1.2 1.0 3.0 3.0 4.3 3.1 3.2 1.7 4.4 4.5 2.6 3.7 1.2 1.3 1.0 4.3 1.2 1.5 1.6 3.3 3.2 4.5 3.2 3.3 2.2 4.7 5.1 2.8 3.8 1.4 1.1 1.3 4.1 1.2 1.0 1.4 3.2 3.1 4.4 3.4 3.4 2.3 4.2 5.0 3.1 3.6 1.4 1.3 1.3 4.1 1.6 1.4 1.3 3.0 2.8 4.2 3.7 3.2 2.3 3.7 4.7 2.8 3.4 1.4 1.3 1.4 4.0 1.0 .8 1.2 3.1 3.0 4.4 4.1 3.3 2.3 3.3 4.9 3.3 3.2 1.5 1.2 1.6 4.0 .6 .7 .4 3.1 2.9 4.2 4.4 3.3 2.4 3.2 3.4 3.2 3.7 1.3 1.0 1.3 3.9 .9 .9 .9 3.5 3.1 4.6 6.2 3.4 2.5 4.7 3.8 3.5 4.2 1.4 1.3 1.4 3.9 .7 .9 .5 3.3 3.3 4.3 4.9 3.3 2.3 4.3 3.4 3.4 3.4 1.3 1.2 1.2 3.7 .7 .5 .9 3.3 3.4 4.3 4.6 3.3 2.2 4.4 3.2 3.4 3.0 1.4 1.4 1.1 3.9 1.0 1.2 .9 3.3 3.5 3.8 4.6 3.4 2.1 4.5 3.8 3.5 3.3 1.4 1.2 1.2 3.9 3 .9 2.7 2.7 3.2 3.3 2.9 2.0 3.7 3.3 .9 1.0 3.0 1.9 1.8 1.9 2.2 6.2 1.1 1.2 1.0 2.8 2.9 1.1 .8 1.9 1.5 1.7 2.3 2.9 2.8 6.0 1.0 1.1 1.0 2.6 2.8 3.3 3.1 2.4 1.9 3.2 2.8 2.4 2.8 1.2 1.4 1.8 1.5 1.1 1.2 1.3 1.2 1.4 1.6 1.5 1.6 1.5 1.6 1.6 1.1 1.1 1.4 2.1 1.2 .9 1.1 1.7 1.2 .8 .9 1.1 .8 .7 1.2 1.2 .7 1.1 1.7 1.2 .9 1.3 1,7 1.5 1.1 1.4 1.6 1.2 1.2 1.2 1.5 1.6 1.6 1.1 1.2 1.3 1.5 1.1 1.1 1.2 1.5 1.1 1.0 1.1 1.2 .9 1.3 1.8 1.4 1.1 1.4 2.2 1.4 1.2 1.4 1.5 1.3 1.1 1.1 1.6 4.4 5.6 6.0 1.4 4.2 5.2 5.6 1.3 4.2 5.3 5.4 1.8 4.5 5.2 6.3 2.0 4.5 5.2 6.0 2.2 4.5 5.1 6.5 2.1 4.8 5.3 6.4 1.8 4.6 5.2 5.9 1.5 4.7 5.5 6.8 1.8 4.5 6.2 6.1 1.7 4.4 5.4 5.4 1.4 4.3 5.2 6.7 1.5 4.3 5.2 5.7 1.6 4.3 5.0 5.6 2.8 3.3 2.8 2.0 4.2 3.8 3.2 2.0 2.8 3.2 2.5 1.8 3.3 2.8 2.8 1.8 2.9 3.1 2.4 1.8 2.3 2.6 2.7 2.2 3.2 3.8 3.0 3.1 3.3 2.8 3.2 2.1 2.8 4.0 2.8 2.9 3.6 2.8 2.9 2.3 3.0 4.3 2.8 2.7 3.8 3.0 3.0 2.4 3.3 4.6 3.1 2.8 4.4 3.6 3.2 3.2 3.4 4.1 2.9 2.5 3.4 3.6 3.0 2.7 3.0 4.2 2.7 2.4 2.6 3.4 2.8 2.4 3.3 4.0 2.6 2.6 2.6 3.3 2.7 2.1 2.8 3.7 2.8 2.8 2.3 3.9 2.9 2.5 2.8 3.5 2.7 2.4 2.5 3.6 3.0 2.4 2.9 3.7 2.8 2.0 3.3 3.8 3.2 2.4 3.0 3.6 2.7 2.4 3.1 3.7 2.9 2.1 2.6 2.5 2.4 2.0 2.7 2.4 1.9 5.5 2.3 1.7 1.5 2.9 2.7 2.4 2.4 2.0 2.5 2.5 1.7 3.7 2.4 1.6 1.4 2.6 2.4 2.2 2.2 1.9 2.4 2.3 1.6 3.3 2.5 2.0 1.7 3.2 2.6 2.4 2.5 2.1 2.4 2.4 1.6 3.5 2.7 2.0 1.5 4.0 2.4 2.3 2.4 1.9 2.5 2.5 1.5 3.1 2.6 2.5 1.9 4.8 2.7 2.5 2.4 2.0 2.7 2.8 1.8 3.6 2.6 2.5 1.6 5.9 2.7 2.7 2.6 2.3 2.5 3.2 2.3 3.9 2.8 3.0 2.0 6.6 2.8 2.4 2.4 2.3 2.3 2.7 2.3 2.6 2.8 2.2 1.3 5.9 2.6 2.6 2.6 2.6 2.3 2.5 2.4 3.2 2.6 2.6 1.7 6.2 2.4 2.6 2.4 2.6 2.4 2.8 2.8 3.3 3.0 2.5 1.6 6.1 2.2 2.7 2.3 2.3 2.1 2.3 3.1 7.2 2.8 2.2 1.6 4.7 2.5 2.6 2.3 2.3 2.1 2.4 2.3 6.0 2.4 2.0 1.6 3.8 2.5 2.4 2.3 2.3 2.2 2.6 1.7 4.4 2.5 1.6 1.2 3.7 2.5 2.3 2.3 2.0 1.9 2.6 1.9 3.8 2.5 2.0 1.5 4.5 2.9 3.1 2.5 3.3 1.4 2.3 1.2 1.4 2.9 2.9 2.6 3.2 1.5 2.5 1.3 1.7 2.7 2.8 2.6 3.0 1.2 2. 4 1.1 1.2 3.2 3.5 3.1 3.0 1.3 2.5 1.1 1.6 3.1 3.3 3.0 3.2 1.4 2.5 1.0 2.1 3.0 3.3 2.8 3.1 1.3 2.7 .9 1.8 3.3 3.6 3.2 3.3 1.4 2.8 1.0 1.8 3.1 3.5 2.9 3.0 1.5 2.8 1.2 1.8 3.0 3.6 2.6 3.0 1.4 2.3 1.3 1.5 3.7 4.4 3.5 3.5 1.5 3.0 1.2 1.8 3.2 3.3 3.1 3.3 1.2 2.8 1.0 1.3 2.9 2.5 2.8 3.3 1.4 2.6 1.1 1.7 2.7 2.3 2.6 3.0 1.6 2.4 1.3 2.0 2.6 ber 1961, see footnote 1, table A-2. For employees covered, see footnote 1, table A-3. These series cover premium overtime hours of production and related workers during the pay period ending nearest the 15th of the month. Overlme hours are those paid for at premium rates because (1) they exceeded https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2.1 2.8 2.2 2.7 1.6 1.8 2.4 2.5 2.7 2.4 2.9 1.4 2.3 1.1 1.7 1.3 1.3 1.1 1.7 4.1 5.1 5.1 2.8 3 .3 2.9 2.7 8 .6 3 .7 8.1 2.1 2.6 2 .3 2.5 2.0 1 .9 2.8 1 .9 4.8 2.5 2 .0 1.4 4.5 2.4 2.3 2.2 2.5 1.2 2.1 1.1 1.4 either the straight-time workday or workweek or (2) they occurred on week ends or holidays or outside regularly scheduled hours. Hours for which only shift differential, hazard, incentive, or other similar types of pre miums were paid are excluded. 3 Preliminary. 757 C—EARNINGS AND HOURS T able C-5. Indexes of aggregate weekly man-hours and payrolls in industrial and construction activities1 [1057-59=100] Annual average 1962 1963 Activity Apr.2 Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 1961 1960 Man-hours Total___ __________________________ Mining----------------- ------------------------Contract construction_______ ___ _____ Manufacturing______________________ 96.0 77.8 88.6 98.2 93.9 76.2 75.7 98.2 92.4 77.3 69.5 97.3 93.4 77.9 75.1 97.5 96.3 79.8 80.7 100.0 99.2 81.3 94.9 100.9 101.7 83.3 105.3 102.0 103.4 84.3 107.7 103.6 102.0 85.4 110.6 101.3 100.6 82.4 107.7 100.2 100.8 85.4 99.5 101.8 99.1 84.0 97.3 100.1 97.1 82.7 87.3 99.6 95.1 84.9 94.3 95.8 99.0 91.1 98.3 99.6 Durable goods___________________ Ordnance and accessories_______ Lumber and wood products, ex cept furniture___________ ___ Furniture and fixtures----- --------Stone, clay, and glass products....... Primary metal industries......... ...... Fabricated metal products______ Machinery___________________ Electrical equipment and supplies.. Transportation equipment............. Instruments and related products.. Miscellaneous manufacturing in dustries____________ ___ ___ 100.0 122.8 99.0 123.4 98.4 125.8 98.7 127.9 100.7 129.9 101.2 129.5 101.8 127.4 102.4 128.0 99.0 127.4 99.8 123.1 102.2 122.4 101.2 123.8 100.5 124.6 93.9 118.1 99.4 111.7 92.8 100.2 96.4 98.6 98.8 101.5 109.8 96.5 103.0 89.5 101.0 90.5 95.9 97.8 101.5 111.0 96.6 102.8 90.0 101.1 87.3 94.1 97.5 100.5 111.8 96.4 102.4 90.6 101.7 88.2 92.2 98.4 100.2 113.1 98.2 102.0 92.5 105.7 91.7 92.2 100.2 100.2 115.8 100.7 103.8 96.2 106.0 98.0 90.0 100.7 99.1 115.8 99.5 104.1 99.6 107.9 100.8 89.8 101.9 99.6 116.4 97.9 103.3 103.1 108.0 102.1 92.5 102.7 100.2 116.9 95.7 103.0 105.0 107.3 103.0 90.5 99.6 99.6 113.4 82.9 103.1 102.3 101.6 101.6 90.3 98.8 100.4 111.8 93.9 101.0 102.7 104.5 101.3 95.2 102.6 102.8 114.5 95.2 103.1 98.2 102.1 99.2 97.5 100.8 101.9 112.2 95.6 101.6 92.9 102.1 95.1 102.8 99.2 101.7 111.4 93.4 101.7 94.0 97.7 94.8 91.6 94.1 93.2 104.1 83.8 98.8 99.2 102.6 100.4 98.0 99.9 99.7 105.8 92.1 102.8 97.1 96.9 94.5 91.8 98.9 107.6 111.2 110.7 107.2 101.5 105.1 102.6 100.6 98.8 101.4 96.0 87.1 72.9 90.9 103.2 101.6 97.1 87.0 76.7 91.5 107.8 102.9 96.0 85.6 80.9 90.6 105.6 101.7 96.0 88.1 89.7 90.2 100.7 102.6 99.1 93.3 100.0 93.2 103.5 105.0 100.6 96.8 99.6 94.4 105.8 104.4 102.2 102.5 120.5 94.8 105.4 105.1 105.2 110.0 133.2 94.6 107.8 106.6 104.3 106.4 104.1 95.7 109.5 106.1 100.8 101.8 74.0 94.2 102.7 104.1 101.2 95.9 75.6 97.7 105.5 105.8 98.8 91.3 75.4 96.4 103.3 103.0 98.4 89.1 76.3 95.9 105.1 102.8 98.2 96.5 94.4 93.5 99.1 102.0 99.8 98.0 97.1 96. 5 101.8 102.1 102.5 104.0 100.8 102.6 100.9 102.5 104.2 103.5 106.0 103.5 106.0 103.7 106.8 104.5 105.1 104.3 104.0 104.2 105.1 104.8 104.8 105.7 105.2 105.7 104.6 100.8 104.4 101.6 Nondurable goods................................. Food and kindred products______ Tobacco manufactures__________ Textile mill products.................... Apparel and related products......... Paper and allied products----------Printing, publishing, and allied in dustries____________________ 103.0 Chemicals and allied products....... 107.4 Petroleum refining and related industries............. ....................... 81.9 Rubber and miscellaneous plastic products___________________ 107.2 Leather and leather products------- 86.3 78.8 78.8 80.6 81.4 82.7 83.5 86.5 88.4 90.7 90.2 88.4 87.5 89.0 93.5 108.4 93.7 107.8 95.6 109.3 95.7 111.1 97.8 111.3 95.9 112.0 93.7 112.0 97.0 109.2 101.7 106.8 99.5 112.3 100.6 108.2 95.3 105.9 96.4 99.5 97.4 101.5 97.5 92.2 128.5 113.6 88.8 124.8 113.2 92.0 114.0 115.1 90.3 111.6 113.2 89.7 101.2 112.6 89.9 106.4 105.2 95.2 106.9 106.6 Payrolls Mining _________________________ Contract cnnstrnetinn M anufacturing. .............. ............................. 113.6 84.1 90.3 113.3 85.5 83.3 112.0 85.7 90.3 112.1 87.6 96.9 115.0 1 For comparability of data with those published in issues prior to Decernber 1961, see footnote 1, table A-2. For mining and manufacturing, data refer to production and related workers 87.9 111.9 115.3 90.2 123.9 115.7 92.0 127.0 117.4 and for contract construction, to construction workers, as defined in footnote 1, table A-3. 3 Preliminary. T able C -6. Gross and spendable average weekly earnings of production workers in manufacturing1 [In current and 1957-59 dollars] Annual average 1962 1963 Item M ar.2 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. Mar. 1961 1960 Manufacturing Gross average weekly earnings: Current dollars____________________ 1957-59 d o llars.._______ ___________ Spendable average weekly earnings: Worker with no dependents: Current dollars________________ 1957-59 dollars ......... ....................... Worker with 3 dependents: Current dollars________________ 1957-59 dollars................................... $98.09 $97.20 $97.44 $98.42 $97.36 $96.72 $97.68 $95.75 $96.80 $97.27 $96.80 $96.56 $95.91 $92.34 92.36 91.61 91.92 93.02 91.85 91.25 92.06 90.76 91. 75 92.37 92.02 91.79 91.34 88.62 $89.72 87.02 78.63 74. 04 77.91 73.43 78.11 73. 69 79.35 75.00 78. 50 77. 99 78. 76 74.06 73. 58 74.23 86.31 81.27 85.58 80.66 85.78 80.92 87.05 82.28 86.19 81.31 1 For comparability of data with those published in issues prior to Decem ber 1961, see footnote 1, table A-2. For employees covered, see footnote 1, table A-3. Spendable average weekly earnings are based on gross average weekly earnings as published in table C -l less the estimated amount of the workers’ Federal social security and income tax liability. Since the amount of tax liability depends on the number of dependents supported by the worker as well as on the level of his gross income, spendable earnings have been com https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85.66 80. 81 86.45 81.48 78.05 73. 98 78.43 74. 48 78.05 74.19 77.86 74.01 77.34 73.66 74.60 71. 59 72. 57 70.39 84.87 85.73 80. 45 81.26 86.11 81.78 85. 73 81.49 85. 53 81.30 85.00 82.18 80. 95 78. 87 80.11 77.70 77.21 73.18 puted for 2 types of income receivers: (1) A worker with no dependents, and (2) a worker with 3 dependents. The earnings expressed in 1957-59 dollars have been adjusted for changes in purchasing power as measured by the Bureau’s Consumer Price Index. 2 Preliminary. N ote: These series are described in “ The Calculation and Uses of the Spendable Earnings Series,” Mo-nthly Labor Review, January 1959,{pp. 50-54. MONTHLY LABOR REVIEW, JUNE 1963 758 D .—Consumer and Wholesale Prices T able D -l. Consumer Price Index.1—All-city average: *A11 items, groups, subgroups, and special groups of items [1957-59-100] Annual average 1962 1963 Group Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May Apr. 1962 1961 106.2 106.1 106.0 105.8 106.0 106.0 100.1 105.5 105.6 105.3 105.2 105.2 105.4 104.2 Food8_____________________________ Food at home............................. ........... Cereals and bakery products.......... Meats, poultry, and fish__.......... Dairy products_____ __________ Fruits and vegetables...................... Other foods at home8...................... 104.3 102.6 109.2 98.3 102.9 112.0 96.2 104.6 103.0 109.1 100.7 103.5 109.6 96.7 105.0 103.5 109.2 102.1 103.6 109.4 97.1 104.7 103.2 108.7 102.5 103.8 106.4 97.6 103.5 101.9 108.2 102.5 103.9 100.2 97.2 104.1 102.6 108.4 103.5 104.2 102.1 97.2 104.3 102.9 108.0 101.1 104.3 102.0 98.1 104.8 103.5 107.9 108.3 104.2 102.2 97.8 103.8 102.3 107.8 102.6 103.9 105.2 95.2 103.8 102.4 107.9 100 8 103.5 109.9 94.1 103.5 102.1 107.4 99.7 102.7 111.9 93.4 103.2 101.9 107.6 99.6 103.0 109.4 94.4 103.4 102.1 107.3 100.1 103.7 108.6 95.1 103.6 102.2 107.6 101.7 104.1 105.0 96.1 102.0 101.5 105.4 99.3 104.8 104.2 97.6 Housing4..................................................... Kent______ ___ ________________ Gas and electricity................................ Solid and petroleum fuels............ ........ Housefumishings_________________ Household operation________ ______ 105.8 106.5 107.5 104.2 98.5 109.9 105.7 106.4 108.0 104.8 98.6 109.7 105.4 106.4 108.0 104.8 98.3 109.3 105.4 105.2 106.3 106.2 108.2 108.1 104.9 104.8 97.9 98.6 109.3 108.1 105.1 106.2 108.1 103.6 98.7 107.8 105.0 106.1 108.0 102.4 98.8 107.6 104.9 105.9 108.0 101.3 98.7 107.6 104.8 105.8 108.0 100.1 98.5 107.4 104.8 105. 7 108.0 99.7 99.0 107.5 104.8 105.6 107.7 99.4 99.1 107.4 104.7 105.5 107.7 100.1 99.0 107.4 104.6 104.8 105. 4 105.7 107.8 107.9 102.4 102.1 99.3 98.9 107.1 107.4 103.9 104.4 107.9 101.6 99.5 105.9 Apparel........ ...... ....... ................. — ........... Men’s and boys’_________________ Women’s and girls’_______________ Footwear_______________________ Other apparel •...................................... 103.8 104.1 101.4 110.2 100.9 103.6 103.9 101.1 110.0 101.1 103.3 103.7 100.7 109.9 100.9 103.0 103.9 104.3 103.5 104.3 104.3 100. 2 101. 5 102. 5 109.8 109.9 109.7 100.3 101.3 101.1 104.9 104.2 104.0 109.6 101.6 104.6 104.0 103.6 109.5 101.2 102.5 102.9 99.9 109.3 100.3 102.9 103.2 100.4 109.2 100.8 102.8 103.1 100.5 109.1 100.4 102.7 103.1 100.0 109.1 100.6 102.7 102.9 100.3 109.2 100.3 103.2 103.3 100.9 109.3 100.6 102.8 102.8 101.0 107.8 100.9 108.3 107.2 115.4 108.1 108.9 116.0 107.8 106.7 115.7 107.4 106.2 115.7 106.8 105.4 115.6 107.3 106.0 115.6 107.3 106.0 115.6 107.2 106.0 115.6 107.2 105.9 115.4 105.0 104.0 111.7 All Items.............................................. ....... 106.2 Transportation______________________ 107.0 Private_________________________ 105.5 Public.................................................... 116.5 107.0 106.8 105.6 105.3 116.4 116.3 106.6 105.3 115.7 108.0 106.8 115.7 Medical care________________________ 116.1 115.8 115.6 115.5 115.3 115,0 114.9 114.7 114.6 114.6 114.4 114.1 113.9 114.2 111.3 Personal care_______________________ 107.6 107.3 107.3 107.4 107.6 107.1 106.9 106.8 106.8 106.8 106.1 106.4 106.3 106.5 104.6 Reading and recreation_______________ 111.0 110.1 110.0 110.2 110.0 110.1 109.5 110.0 110.3 110.0 109.2 109.5 109.4 109.6 107.2 105.1 105. 3 104.6 Other goods and services....... ..................... 105. 8 105.7 105.7 105.7 105.6 105.6 105.6 105.6 105.5 105.6 105.2 105.1 Special groups: All items less food................................ 107.0 All items less shelter.............. ............. 106.1 All commodities less food__________ 103.0 106.8 106.6 106.1 106.1 102.9 102.7 106.5 105.9 102.6 108.7 105.8 103.4 106.7 106.0 103.5 106.7 106.1 103.6 106.6 106.1 103.4 106.2 105.5 102.6 106.1 105.4 102.5 106.1 105.3 102.6 106.0 105.2 102.6 106.0 105.2 102.8 106.1 105. 4 102.8 104.8 104.2 102.1 All commodities............................ ....... Nondurables 8________________ Nondurables less food__________ Non durables less food and apparel-. Durables 7___________________ Durables less cars..................... 103.6 104.2 104.3 104.7 100.9 98.4 103.7 104.4 104.2 104.7 100.8 98.5 103.8 104.5 104.1 104.6 100.6 98.4 103.6 104.3 104.0 104.7 100.4 98.5 103.6 104.0 104.6 105.1 101.7 98.6 103.9 104.2 104.4 104.5 102.2 98.6 104.0 104.4 104.6 104.5 102.0 98.6 104.1 104.7 104.6 104.6 101.6 98.6 103. 2 103.1 103.5 103.5 103.2 103.3 103.7 103.5 101.7 101. 5 98.7 98.7 103.1 103.4 103.4 103.8 101.6 98.8 103.0 103.2 103.5 104.0 101.5 98.9 103.1 103.6 103.8 104.4 101.4 98.9 103.2 103.6 103.8 104.2 101.5 98.8 102.4 102.8 103.2 103.3 100.6 98.6 All services 8..... .................................... All services less rent........................ Household operation services, gas, and electricity________ Transportation services______ Medical care services________ Other services_____ ___ ___ 111.1 110.8 110.5 111.6 111.2 110.5 111.2 110.1 110.8 110.0 110.6 109.8 110.5 109.8 110.5 109.9 110.6 109.8 110.5 109.5 110.2 109.4 110.1 109.2 109.8 109.6 110.2 107.6 108.3 110.2 110.2 109.9 112.0 111.8 111.4 119.2 118.9 118.7 110.5 110.0 109.6 109.9 118.5 109.7 109.1 110.9 118.2 109.3 108.8 108.7 110.7 110.8 118. 0 117.8 109.3 109.1 108.6 110.5 117.5 109.3 108.5 111.7 117.3 109.3 108.6 111.7 117. 2 109.1 108.5 111.5 116.9 108.7 108.4 111.5 116.6 108.2 111.5 116. 2 108.2 108. 5 111.2 116.8 108.7 107.2 109.5 113.1 106.8 111.9 111.1 *T he Consumer Price Index for April 1963 calculated from a 1947-49 —100 base was 130.3. i T he Consum er Price Index measures the average change in prices of goods and services purchased b y urban wage-earner and clerical-worker fam ilies. D ata for 46 large, m edium -size, and sm all cities are com bined for the all-city average. 1 In add ition to subgroups show n here, total food includes restaurant m eals and other food bought and eaten aw ay from hom e. * Includes eggs, fats and oils, sugar and sw eets, beverages (nonalcoholic), and other m iscellaneous foods. 4 In addition to subgroups show n here, total hou sin g includes the purchase price of hom es and other hom eow ner costs. * Includes yard goods, diapers, and m iscellaneous item s. * Includes food, house pain t, solid fuels, fuel oil, textile hou sefum ish ings, household paper, electric ligh t bu lbs, laun dry soap and detergents, apparel https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108.7 (except shoe repairs), gasoline, m otor oil, prescriptions and drugs, toilet goods, nondurable toys', new spapers, cigarettes, cigars, beer, and w h isk ey. 7 Includes w ater heaters, central heating furnaces, k itch en sinks, sink faucets, porch flooring, household appliances, furniture and bedding, floor coverings, dinnerware, autom obiles, tires, radio and television sets, durable toys, and sporting goods. 9 Includes rent, hom e purchase, real estate taxes, m ortgage, interest, prop erty insurance, repainting garage, repainting room s, reshingling roof, re finishing floors, gas, electricity, dry cleaning, laun dry service, dom estio service, telephone, water, postage, shoe repairs, auto repairs, auto insurance, auto registration, transit fares, railroad fares, professional m edical services, hospital services, hospitalization and surgical insurance, barber and beauty shop services, television repairs and m otion picture adm issions. 759 D.—CONSUMER AND WHOLESALE PRICES D-2. Consumer Price Index 1—A ll items and food indexes, by city T able 1957-59-100] Apr. Mar. Annual average 1962 1963 Feb. Jan. Dec. Oct. Nov. Sept. Aug. July June May Apr. 1962 1961 1963 (194749=100) Apr. All Items All-city average *....... 106.2 106.2 106.1 106.0 105.8 106.0 106.0 106.1 105.6 105.5 105.3 105.2 105.2 105.4 104.2 130.3 A tlanta, Ga B altim ore, M d B oston , M a ss_______ Chicago, 111__ C incinn ati, O hio____ (») (3) 109.2 105.0 (3) 104.9 106.2 (3) 105.2 104.5 (») (») 104.7 (•) (3) (3) (3) 108.6 104.7 (3) 104.5 105.7 (3) 104.7 104.0 (3) (s) (s) 105.0 (3) (3) (3) 108.2 105.0 (3) 104.7 106.0 (*) 105.2 104.3 (3) (») (3) 104.4 (3) (») (3) 107.2 104.5 (3) 104.0 104.8 (3) 104.5 103.3 (») (3) (3) 104.6 (3) (») (3) 107.1 104.8 (3) 104.1 105.2 107.4 104.6 103.6 103.2 104. 4 105.1 103. 6 102.6 (3) (3) 135.3 132.4 (3) CllevelaTid, O h io D etroit, M ich _ TTnnst.nn, T at K ansas C ity , M n Los A ngeles, C alif___ (3) 102.1 (3) 106.4 108.0 («) 102.6 (3) (3) 107.7 104.3 102.6 105.0 (3) 107.8 (3) 102.5 («) 105.9 107.3 (3) 102.5 (3) (3) 107.2 103.7 102.6 104.5 (3) 107.1 (3) 102.8 (3) 107.1 107.2 (3) 102.8 (3) 107.2 103.8 102.3 104.6 (3) 106.6 (3) 101.9 (3) 106.0 106.8 (3) 101.8 (3) (3) 107.0 103.5 102.0 104.7 (3) 106.9 («) 102.2 (3) 1Ù5. 7 106.3 103.6 102.2 1U4. 6 106.1 106.6 103.2 101.9 102. 6 104. 5 105.4 (3) 125.9 (3) 131.6 134.7 M inneapolis, M in n .. N e w Y ork, N .Y P h ilad elp h ia, P a ___ 106.5 107.9 106.4 106.3 106.2 (3) 107.6 106.4 (3) (») 107.6 106.2 (») (*) 106.0 107.5 105.9 106.5 105.7 (3) 106.9 105.7 (3) (3) 107.1 105.8 105.9 107.2 105.8 106.3 105.3 («) 107.3 106.0 (3) 106.6 105.2 (3) 105.8 104.9 («) 105.7 104.7 (3) (3) (3) (3) 105.7 106.4 105.3 106.0 104.8 (3) (3) (3) (3) 105.5 106.0 105.1 105.7 103.9 105.5 106.4 105.2 105. 9 104.6 104.2 104.8 104.4 105.0 104.1 131.7 130.0 130.7 131.0 131.6 (3) (3) (3) (3) 105.8 108.4 (3) (3) (») (3) 106.9 107.2 105.6 (3) (3) (3) (3) 106.0 107.8 (3) (3) (3) (3) (3) (3) 105.6 107.5 (3) (3) (3) (3) 106.0 106.7 104.8 (3) (3) (3) 104.4 107.5 (3) (3) (3) (3) (3) (3) (3) (3) 105.1 107.4 105.9 106.5 104.6 103.9 105.8 104.1 104. Ô 103.7 (3) (3) (3) (3) (3) (3) (*) 105.7 106.3 104.2 P itts b u rg h , Pa P ortland, Oreg........... S t. T o n is , M o San Francisco, C aliL . S c ra n to n , P a S e a tt l e , W a s h W ashington, D .C___ (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 106.5 107.0 105.3 (3) (3) (3) (8) (3) Food All-city average 3....... 104.3 104.6 105.0 104.7 103.5 104.1 104.3 104.8 103.8 103.8 103.5 103.2 103.4 103.6 102.6 Atlanta, Ga 102.7 103 5 106.6 105.0 102.2 103.8 103 7 106.5 105. 7 102.6 104.2 103 9 106.3 105.4 103.7 104.0 104.6 106.4 105.6 103.1 102.7 103.4 105. 7 104.3 101.7 103.1 103.6 106.4 105.7 102.8 103.9 104.2 105.7 105.7 103.0 104.3 104.5 105.7 106.7 103.7 103.4 104.2 105.0 105.8 102.2 102.9 103.4 104.3 105.7 102.4 103.0 103.0 104.2 105.2 101.5 103.1 102.7 103.7 104.6 101.2 102.7 102.7 103.5 105.6 101.5 103.0 103.3 104.6 105. 3 101.9 101.8 102.4 102.4 103.2 101.8 100.8 100 8 103.3 10fi fi 101.7 101.1 102.3 103.6 106. 8 102.2 101. 7 103.0 104.3 107.8 101.7 101.3 103.2 103.2 106.8 100.8 100.6 102.4 103.2 105.6 101.3 101.6 102.8 104.4 105.3 101.7 101.5 103.6 104.5 105.6 102.4 101.6 104.0 105.1 105.9 101.5 100.8 102.9 104.2 104.7 101.4 101.2 103.1 103.7 105.0 101.2 100.9 102.2 103.0 106.1 101.1 101.4 103.1 102.6 106.2 100.6 101.2 102.9 101.8 105.4 101.0 101.1 102.9 103.3 105. 6 100.9 101.4 101.3 101.9 104. 5 102.0 106.3 103.1 103 1 104 5 1 0 1 .8 106.6 104.1 104 1 104 6 101.7 106.8 104.4 104.3 105.2 101.5 106.6 104.5 103. 2 105.3 100.8 104.9 103.0 101.7 103.9 100.9 105.8 103.5 102.5 104.1 101.5 106.3 104.8 102.8 104.5 102.5 107.0 104.8 103.4 104.8 101.8 105.7 103.6 102.5 103.4 102.5 104.8 103.8 102.4 103.6 102.3 103.7 102.6 102. 5 104.2 102.4 103.5 102.3 102.4 104.3 102.4 104.5 102.6 101.7 103,0 101.8 104.9 103.1 102.4 103.6 101.2 102.9 101.9 102.3 103.0 104 0 106.5 103 1 107 3 102! 9 104 5 106.9 103. 3 107.3 103.6 105.0 107.0 104.4 106.9 103.2 104.9 106.7 104.1 106.3 103.9 104.6 105.6 102.9 105.9 101.8 104.5 105.8 103.6 105.9 102.1 103.8 105.6 104.1 105.9 103.4 104.2 105.0 103.8 106.6 103.0 102.7 104.3 102.3 106.0 102.6 102.8 105. 5 103.1 106.1 102.2 102.3 105.9 103.5 106.5 102.3 105.4 103.2 105.5 101.5 102.2 105.4 102.9 106.3 103.0 105.4 103.1 105.7 102.0 104.0 101.3 104.5 _____ -L>Ctil/liXiUI tJ, 1Y-LU.___ Boston, M a ss_____ Chicago, Til Cincinnati, Ohio___ nifly p l^n d Ohio r> o tro |t A/Tioh TTonston T pt K a n s a s City, M n Los Angeles, Calif Minneapolis, M in n New York, N.Y _ . Philadelphia, Pa _ TMttcl-mro-h X ltto U U lg ll, P I a Cl.. . . . . . Portland, Oreg-------Of L/UUIS, T<nn1a A TV Db. VTo X4J.. . . . . . . Ran Francisco, Calif DCdttlp, V VctoU__. ..... Washington, D.C__ 101 8 i See fnntnotA 1. ta b le D - l . Indexes measure time-to-time changes in prices of goods and services purchased by urban wage-earner and clericalworker families. They do not indicate whether it costs more to live in one city than in another https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 101.1 101.6 102.0 101.6 * Average of 46 cities. 1 All items indexes are computed monthly for 5 cities and once every month on a rotating cycle for 15 other cities. 760 MONTHLY LABOR REVIEW, JUNE 1963 T able D-3. Indexes of wholesale prices,1 by group and subgroup of commodities [1957-59-100, unless otherw ise specified] * A p r .8 M ar. F eb . Jan. D ec. N ov. Oct. Sept. A ug. J u ly June M ay Apr. 1962» 1961 A ll com m od ities__________________________ 99.8 99.9 100.2 100.5 100.4 100.7 100.6 101.2 100.5 100.4 100.0 100.2 100.4 100.6 100.3 Farm products and processed foods_______ 97.6 497.4 98.7 99.8 99.3 100.4 100.3 102.1 99.8 98.9 97.7 98.0 98.7 99.6 98.6 95.4 95.4 99.5 99.0 105.1 103.7 88.2 85.6 102.0 101.8 98.5 4 99.6 81.3 99.8 110.7 113.8 89.4 89.0 99.4 4 99.0 108.1 4108.0 90.4 91.8 106.9 4107.1 96.5 96.5 103.0 89.5 100.8 101.1 99.1 113.5 89.1 100.5 108.6 95.6 108.0 98.5 104.0 102.0 94.1 99.3 101.3 100.1 111.9 87.4 100.8 107.4 97.9 107.8 97.3 88.5 101.1 96.2 98.1 101.9 99.3 108.2 89.0 100.9 107.6 99.4 108.1 99.3 96.4 99.5 98.3 97.6 102.1 112.4 106.9 90.1 101.3 107.7 100.1 108.0 98.7 97.5 98.5 98.6 97.5 102.5 103.1 103.1 89.7 101.5 107.6 100.0 107.7 100.6 94.9 98.6 104.4 97.4 101.6 110.7 99.8 90.8 103.3 107.6 106.8 106.0 97.6 90.9 98.1 98.5 98.4 100.8 98.0 105.2 89.9 101.5 107.8 101.0 100.1 96.5 92.2 99.1 95.8 99.3 99.8 86.2 105.3 92.5 100.8 107.9 99.0 105.7 95.3 98.7 99.9 91.6 99.6 97.0 80.0 106.3 92.5 99.8 107.6 95.7 105.0 96.2 107.1 101.0 91.4 98.9 96.7 75.3 107.6 93.4 99.6 107.4 95.5 104.5 96.9 99.0 98.5 94.1 98.9 98.8 91.7 107.4 93.2 100.2 108.0 95.6 106.0 97.7 97.7 98.8 96.2 98.4 101.2 95.2 105.4 91.8 101.2 107.6 99.1 106.9 96.0 93.7 95.6 92.5 94.8 103.9 99.0 107.2 93.2 100.7 105.1 95.4 107.6 103.0 4101.3 113.9 106.1 81.2 4 79.1 79.3 4 80.0 83.3 4 83.8 84.1 90.0 87.2 90.5 101.9 101.5 100.3 100.4 100.4 100.6 100.1 4100.2 100.1 100.2 100.8 100.8 93.8 «93.8 150. 9 150. 9 101.3 101.4 117.7 114.9 4 99.8 105.1 479.1 86.0 82.5 89.2 91.9 101.5 100.6 100.6 100.3 100.5 100.7 93.7 151.1 101.4 118.2 100.0 105.0 479.1 82.8 81.0 88.4 91.9 100.2 100.7 100.7 100.4 100.6 100.7 93.7 149.8 101.3 123.3 95.7 102.8 4 79.1 85.2 78.9 90.0 91.8 100.4 100.8 100.7 100.6 100.8 100.2 93.7 143.3 101.7 127.9 96.3 102.5 <79.1 92.2 79.8 88.7 91.8 101.2 100.8 100.7 100.5 100.7 100.1 93.6 130.3 101.7 127.8 96.4 103.0 4 79.1 95.2 80.9 86.2 90.9 104.6 100.8 100. 7 100.5 101.0 99.6 93.6 129.6 101.7 121.6 96.6 102.1 82.4 91.4 76.7 84.6 92.6 102.8 101.2 100.8 100.6 101.3 99.4 94.0 125.2 101.6 122.1 97.1 102.7 82.6 89.5 77.9 85.2 92.9 101.1 100.8 100.6 100.8 101.7 99.3 94.3 132.4 101.8 119.4 98.7 102.2 82.6 85.8 78.2 85.2 94.5 101.0 100.8 100.8 100.9 101.9 99.3 94.7 130.2 101.8 121.6 99.1 102.4 82.6 85.7 80.8 88.8 100.1 101.8 100.6 100.7 100.8 102.0 99.1 94.6 130.7 101.5 123.9 98.6 102.1 82.6 87.7 87.1 89.9 101.9 100.7 100.7 100.9 100.7 102.1 98.9 94.5 126.4 101.4 119.7 99.0 102.3 82.6 86.2 91.4 94.9 101.9 101.2 100.8 100.9 100.5 102.4 98.6 93.7 121.6 101.3 118.6 98.0 102.2 81.9 88.4 84.5 93.1 97.3 101.8 100.9 100.8 100.6 101.7 99.1 93.9 125.9 101.5 122.4 101.7 101.3 83.7 94.4 102.6 108.3 102.7 105.8 100.8 100.8 99.7 100.4 97.1 93.4 113.2 101.0 *123.3 4105.1 105.1 106.0 106.9 107.3 107.4 85.9 88.4 95.2 101.6 107.1 108.8 103.7 104.7 105.2 106.1 106.8 106.5 4108.3 4108. 3 4108.3 4108. 5 4108. 4 4108. 4 104.7 104.8 104.9 105.5 105.0 104.8 100.8 100.3 100.4 100.8 100.8 100.8 98.4 98.1 98.3 98.3 97.7 97.2 103.6 103.6 103.6 103.6 103.6 103.6 4127.8 127.8 120.8 123.1 122.3 122.7 102.4 102.5 102.5 102.7 102.7 102.7 98.1 98.1 98.1 (») (8) (8) 97.1 98.2 98.2 98.6 98.9 98.9 96.7 96.8 96.9 97.0 97.1 96.8 95.2 95.4 95.9 96.1 96.0 95.9 103.7 103.8 103.8 103.8 103.8 103.8 93.0 93.0 93.0 92.9 93.9 93.9 95.1 95.2 95.1 95.2 94.8 95.1 72.7 4 74.5 71.7 72.8 76.7 75.9 4103.6 103.6 103.0 102.8 103.1 103.4 102.3 102.3 100.8 99.2 99.0 99.6 4 99.5 99.5 99.6 99.5 99.5 99.5 94.2 94.1 94.3 94.4 93.7 93.1 93.7 92.7 94.1 92.8 94.7 92.7 89.0 89.0 89.0 88.0 89.0 86.4 99.7 99.8 99.7 99.7 99.7 100.0 96.1 4 96. 5 95.9 95.8 96.3 96.6 4 96. 6 96.2 95.9 95.8 96.3 96.7 102.5 102.3 102.3 102.1 102.3 102.3 90.5 4 91.2 90.5 90.4 91.5 91.9 4 99.0 99.1 99.0 99.0 99.1 99.3 89.4 89.4 89.4 89.4 89.4 91.3 96.1 96.6 94.7 96.0 94.6 96.1 102.2 102.2 102.2 102.2 102.2 102.3 94.1 94.1 94.1 94.1 94.1 94.0 107.5 110.8 106.6 108.8 104.0 100.8 96.6 103.6 120.1 102.8 98.2 99.2 96.9 95.9 103.8 94.5 95.0 72.3 103.9 98.6 99.5 92.8 92.0 86.4 99.4 97.0 97.2 102.3 92.2 99.5 93.6 96.4 102.4 94.0 107.0 105.1 106.9 108.8 103.9 99.5 95.0 103.6 117.8 102.8 98.2 97.2 97.0 95.9 103.8 95.3 95.0 73.0 103.9 98.4 99.4 92.7 92.3 86.4 99.1 97.4 97.7 102.7 92.1 99.7 93.6 95.1 102.6 94.0 107.5 104.2 108.4 108.8 105.0 100.0 95.3 103.6 119.7 102.8 98.2 98.0 97.2 96.1 103.8 96.0 95.1 73.5 103.9 101.0 99.4 92.7 92.4 86.4 99.1 97.5 98.0 102.3 92.4 100.0 93.0 96.8 102.6 94.0 108.0 108.5 110.0 108.7 104.9 99.6 94.6 103.6 113.8 102.8 98.2 98.1 97.0 96.2 103.8 96.2 97.0 73.4 103.9 103.6 99.4 93.0 93.5 86.4 99.4 97.3 97.6 101.9 92.9 100.5 93.6 96.4 103.1 93.8 107.2 105.4 110.6 108.7 101.7 99.7 94.6 103.6 116.6 102.9 98.2 97.9 97.7 96.3 103.8 96.4 97.0 77.1 103.9 103.6 99.4 93.2 94.9 86.4 99.4 97.1 97.5 101.8 92.2 100.8 93.6 96.2 103.1 93.8 106.9 103.3 109.5 108.7 102.6 100.2 95.3 103.6 115.3 103.0 98.2 98.9 97.9 96.5 103.7 96.6 97.0 79.3 104.3 103.7 99.3 92.9 94.1 86.1 99.1 96.8 96.8 101.3 94.2 101.3 95.0 98.0 103.1 93.8 107.4 106.2 108.5 108.7 104.3 100.2 96.8 103.6 119.2 102.8 98.1 98.2 97.5 96.3 103.8 95.6 96.0 76.3 103.8 101.9 99.4 93.3 93.6 87.1 99.4 96.5 96.5 101.8 92.4 100.0 93.2 97.5 102.6 93.1 100.2 107.9 106.0 107.4 103.2 100.7 97.7 103.6 118.7 102.4 98.0 99.3 99.1 98.4 103.6 99.6 98.3 87.5 102.6 104.3 99.2 96.1 96.3 92.4 100.0 95.9 94.7 101.9 95.7 98.8 95.0 80.5 102.2 92.5 100.0 97.1 100.4 97.1 101.0 96.3 101.6 95.5 102.1 97.7 103.0 97.9 101. A 97. 2^ 99.5 100.8 Farm products........................................... F resh and dried fruits and v e g eta b le s.. G rains........................................................ ....... L ivestock and liv e p ou ltry — P la n t and anim al fibers___ F lu id m ilk ...................... .............. ................. E ggs.......................... ................................. ....... H a y . havseed s. and o ils e e d s ______ . _ Other farm products ...... ... . . . Processed foods......................... .......... Cereal and bakery products_____ M eats, pou ltry, and fish............ D a iry products and ice cream ................... C anned and frozen fruits and vegetab les.................................. ........................... Sugar and confectionery_____ _________ Packaged beverage m aterials____ _____ A nim al fats and oils___ Crude vegetable o ils__________________ R efined vegetable o i l s ................... V egetable oil end products....................... M iscellaneous processed foods 5 A ll com m odities except farm products___ A ll com m odities except farm and foods___ T ex tile products and apparel C otton products ... ___ W ool products________________ M anm ad e fiber textile products_______ S ilk produ cts______________ __________ A pparel____ _________ ________________ M iscellaneous textile products 8_______ H id es, skins, leather, and leather produ cts.......... .............. ....................................... H ides and skins______________ L eather____________________________ F ootw ear......................................... ............... O ther leather products________________ F u el and related products, and pow er— C oal___________________________ C oke............................................................... Gas fuels ' _ ... . E lectric p o w e r 7.................................... Crude petroleum and natural gasoline.Petroleum products, refined Chem icals and allied produ cts__________ Industrial chem icals___________ Prepared p ain t_______________________ P a in t m aterials__ ____________________ D rugs and pharm aceuticals....... ........... .. F ats and oils, inedihle M ixed fertilizer______________ Fertilizer m aterials............................. Other chem icals and allied produ cts___ R ubber and rubber products____ _______ Crude rubber_________________________ T ires and tu b es___________ M iscellaneous ruhher products * Lum ber and w ood products___________ L um b er....................................... .............. M illw ork ______________ ______________ P ly w o o d ................ ............... ........... ............. P u lp , paper, and allied products................. W o o d p u lp ................................................. . W aste paper______________ ___________ P ap er.......... ............................................. Paperboard_________ ______ __________ C onverted paper and paperboard produ cts_____ ____ ________________ B uildin g Daper and hoard_______ __ 8ee footnotes at end of tab le; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104.6 85.0 102.8 108.3 104.6 100.4 95.8 103.6 124.1 102.4 (8) 98.2 96.5 95.3 103.7 91.5 95.2 77.7 103.6 102.3 98.6 94.1 92.8 89.0 99.8 97.0 97.6 102.4 91.0 99.0 91.3 92.5 102.2 94.1 99.7 95.5 4 99.7 4 94.1 99.9 95.5 99.6 95.6 99.6 96.2 99.7 96.6 100.0 96.3 761 D.—CONSUMER AND WHOLESALE PRICES T able D-3. Indexes of wholesale prices,1 by group and subgroup of commodities—Continued [1957-59 »»100, unless otherwise specified] * Annual Average 1962 1963 Commodity group Apr.* Mar. Feb. Jan. Dec. Sept. Aug. July Apr. 1962* 1961 99.5 98.8 98.0 104.5 103.8 97.5 92.5 98.1 99.3 99.3 99.4 99.7 98.7 98.4 98.7 99.0 97.7 98.3 97.9 98.9 103.7 103.7 103.7 103.7 103.8 103.8 103.7 103.7 97.6 97.5 97.2 96.8 93.3 92.8 92.7 92.6 98.1 98.1 98.2 98.2 99.8 99.1 99.0 103.7 103.7 96.8 92.9 98.3 99.7 99.8 100.2 100.3 98.9 98.9 99.2 99.6 99.0 99.3 99.9 99.8 103.7 103.7 103.7 103.7 103.7 104.2 104.1 104.1 97.1 98.5 103.8 103.7 92.9 92.9 93.1 93.7 98.3 98.3 98.3 98.1 100.0 99.3 99.2 103.7 104.0 100.1 93.2 98.2 100.7 100.7 100.4 102.0 103.8 103.1 94.6 99.0 104.4 103.9 102 3 102.3 109.2 109.5 103.1 102.3 107.4 NOV. Oct. June May A ll com m odities except farm and foods— C ontinued M etals and m etal products______________ Iron and ste el_________________________ Nonferrous m etals_______________ — — M etal containers______________________ H ardw are_____________________________ P lu m b in g fixtures and brass fittin g s— H eatin g eq u ip m en t.................................. .. Fabricated structural m etal p r o d u c ts.. Fabricated nonstructural m etal prod u cts............ .................... - ---------------------M achinery and m otive products------------Agricultural m achinery and eq u ip m en t. C onstruction m achinery and e q u ip m e n t_______________________________ M etalw orking m achinery and e q u ip m e n t.................... ..................... General purpose m achinery and eq u ip m e n t................... ........... ......................... — M iscellaneous m achin ery-------------------Special in d u stry m achinery and eq u ip m ent 10................................................... ........ E lectrical m achinery and e q u ip m e n t... M otor vehicles________________________ Transportation eq u ip m en t, railroad rolling stock w............................................. Furniture and other household durab les. H ousehold furniture------------------------ . . . C om m ercial furniture_________________ Floor coverings------------- ---------------------H ousehold appliances-------------------------T elevision , radio receivers, and ph ono graphs............................................................ Other household durable goods-----------N o n m etallic mineral produ cts---------------F la t glass.............................. ........... ............... Concrete ingredients__________________ Concrete produ cts------------------------------Structural clay p ro d u cts.-------------------G ypsum products____________________ Prepared asphalt roofing---------------------O ther nonm etallic m inerals___________ T obacco products and b ottled beverages. T obacco products-------------------------------A lcoholic beverages___________________ N onalcoholic beverages-----------------------M iscellaneous produ cts--------------------------T o y s, sporting goods, sm all arms, am m u n itio n ___________________________ M anufactured anim al feeds----------------N o tio n s and accessories_______________ Jew elry, w atches, and photographio eq u ip m en t_________________________ Other m iscellaneous products-------------- 99.4 98.5 98.2 104. 5 103. 9 100.8 92.9 97.6 99.4 99.4 «98.4 98.6 98.1 98.0 104 5 104.5 <103.9 104.0 101.3 101.1 «92.6 92.4 <97.8 98.0 103.7 102.0 111.0 103.7 103.7 102.2 102.3 110.8 110.8 103.8 103.9 103.8 103.9 102. 3 102.2 102.2 102.3 110.5 110.2 109.6 109.4 103.9 103.9 102.3 102.3 109.4 109.5 103.9 102.4 109.5 108.8 108.8 108. e 108.3 108.3 108.2 108.0 107.7 107.7 107.0 107.7 107.7 107.7 107.8 107.6 109.7 109.5 109.4 109.3 107.0 103.6 103.3 102.9 103.1 103.2 103.1 103.2 103.5 103.4 103.2 103.1 103.1 102.0 102.0 102.0 101.8 101.8 101.7 98.4 98.0 98.1 98.4 98.6 98.6 100.9 100.9 100.9 100.9 100.1 100.1 103.3 103.4 102.8 102.8 101.9 98.4 100.5 100.4 100.0 100.7 100.5 100,5 100.5 98.9 99.0 98.9 103.9 103.7 103.4 102.2 102.2 102.2 96.9 97.0 97.0 94.3 94.3 94.7 100.5 98.8 103.8 102.3 97.0 94.0 100.2 99.5 102.8 101.8 99.3 95.2 92.3 103.2 102.1 98.0 103.2 102.5 103.6 105.0 99.0 102.0 104.1 102.0 101.1 116.7 106.0 91.1 103.1 101.8 97.0 103.2 102.6 103.5 105.0 94.8 102.2 104.1 102.1 101.0 116.9 107.3 95.3 102.5 101.8 96.8 102.8 102.5 103.2 103.8 98.6 102.2 103.2 102.0 100.6 112.8 103.9 100. 5 100.8 108.3 110.6 98.7 98.7 100.9 104.0 98.9 104.2 101.3 103.5 101. 109.4 «109.1 109.1 109.2 109.3 109.3 109.3 103.9 103.4 103.8 103.7 103.7 103.4 103.3 103.3 103.1 103.1 103.1 102.9 97.0 <97.1 97.8 98.0 100.2 100.3 100.4 100.4 102.8 102.5 102.2 98.1 98.1 98.4 100.4 100.4 100.4 103.4 103.7 103.4 103.7 103.6 103.4 109.3 109.5 109.6 100.5 100.5 98.2 98.2 104.7 «104.6 102.3 102.3 95.9 96.0 92.2 92.3 100. 5 100.5 98.2 98.3 104.5 104.5 102.3 102.3 95.9 96.2 92.3 92.3 100.5 100.5 98.4 98.6 104.2 104.1 102.3 102.5 96.4 96.8 93.0 93.1 100.5 98.5 104.0 102.5 96.8 93.0 100.5 100.5 100.5 98.6 98.7 98.8 103.9 104.0 104.1 102.5 102.5 102.4 96.7 96.7 96.7 93.2 93.6 93.9 89.4 103.0 101.5 96.6 103.0 102.2 103.6 105.0 94.1 101.4 104. 3 102. 2 101.1 117.4 108.0 90.1 90.1 102.8 102.8 101.5 101.4 96.6 96.6 103.0 102.7 102.2 102.5 103.6 103.7 105.0 105.0 94.1 89.4 101.5 102.2 104.3 104.3 102.2 102.2 101.1 101.1 117.4 117.4 111.5 111.6 90.4 102.8 101.5 96.6 103.2 102.6 103.5 105.0 89.4 102.4 104.3 102.2 101.1 117.4 110.2 90.4 102.9 101.6 96.6 103.8 102.8 103.4 105.0 89.4 102.4 104.5 102.2 101.5 117.4 109.8 90.7 102.9 101.6 96.6 103.3 102.7 103.4 105.0 89.4 102.2 104. 5 102.2 101.5 117.4 108.7 90.7 103.1 101.5 96.6 103.3 102.6 103.6 105.0 89.4 101.5 104.2 102.0 101.1 117.1 109.1 89.4 102.8 101. 5 96.6 103.0 102.2 103.6 105.0 94.1 101.5 104.3 102.2 101.1 117.4 «110.8 100.7 «100.5 111.9 117.1 98.7 98.7 101.1 118.2 98.7 103.8 «103.9 101.4 101.7 104.0 101.7 101.3 101.2 101.2 101.1 115.7 114.9 112.8 113.7 98.7 98.7 98.7 98.7 104.0 104.4 104.4 104.4 104.4 101.8 101.6 101.7 101.6 101.2 101.3 118.3 98.7 i As of January 1961, new weights reflecting 1958 values were introduced Into the index. See “Weight Revisions in the Wholesale Price Index 18901960,” M o n th ly La b o r R e v ie w , February 1962, pp. 175-182. 3 As of January 1962, the indexes were converted from the former base of 1947-49=100 to the new base of 1957-59=100. Technical details and earlier data on the 1957-59 base furnished upon request to the Bureau. * Preliminary, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104.1 102.3 109.3 103.8 102.0 110.9 90.8 102.9 101.6 96.6 103.3 102.6 103.6 105.0 89.4 101.7 104.2 102.0 101.1 117.1 107.2 90.8 103.0 101.6 98.0 103.3 102.7 103.6 105.0 89.4 101.7 104.0 102.0 100.7 116.7 107.6 90.9 103.2 101.9 98.0 103.2 102.5 103.6 105.0 95.3 102.0 104.1 102.0 101.1 116.7 105.4 91,2 103.2 102.4 97.9 103.1 102.6 103.6 105.0 101.4 102.8 104.0 102.0 100.8 116.7 106.0 101.0 101.0 110. 2 111.0 98.7 98.7 100.7 100.6 107.2 108.2 98.7 98.7 104 4 104.3 101.0 101.0 104.2 104.1 104.1 100.9 100.9 101.3 * Revised. * Formerly titled “other processed foods." t Formerly titled “other textile products.” i January 1958=100.] <Discontinued. » Formerly titled "other rubber produets." January 1961=100. MONTHLY LABOR REVIEW, MAY 1963 762 T able D-4. Indexes of wholesale prices for special commodity groupings 1 [1957-69««100, u n le s s o th e r w is e specified ]» 1962 1963 Annual average Commodity group Jan. Dec. Nov. Oct. 101.1 121.9 100.7 98.4 101.5 98.2 98.9 94.4 97.9 91.7 97.6 103.5 99.9 120.9 100.8 98.5 101.5 98.6 100.1 97.5 97.4 91.7 97.7 103.5 101.3 118.3 1008 98.3 100.4 98.6 98.9 101.4 95.6 91.7 98.3 103.5 101.2 119.0 100.8 98.4 99.1 98.9 97.8 101.4 97.9 91.4 97.2 103.5 Pulp, paper, and allied products (excluding building paper and board)_____________ ______________ 99.2 499.2 99.3 99.1 Special metals and metal products4______________ 100.1 100.1 100.2 100.2 Steel mill products_____1______________________ 101.3 4101.1 101.3 101.3 Machinery and equipment______________ _______ 102.7 102.6 102.9 103.0 Agricultural machinery (Including tractors) __ 112.1 112.0 111.9 111.8 Metalworking machinery_____________ __________ 108.8 4108.4 108.5 108.6 All tractors ...............' __ _ __ ... ............ 110.7 110.6 100.5 110.4 Industrial valves ............... ................... .............. 107.4 107.4 107.4 107.8 Industrial fittings_____________________ _______ 90.9 90.9 94.6 94.6 Antifriction hearings and component* ~ . 90. 8 90.8 90.8 90.8 Abrasive grinding wheels______________________ 96.4 97.7 97.7 97.7 Construction materials________________________ 97.8 97.7 97.6 97.7 99.1 100.1 101.3 103.0 111.4 108.7 110.2 108.0 94.6 90.8 97.7 97.7 99.2 100.1 101.3 102.8 111.3 108.7 110.0 108.0 94.6 90.8 97.7 97.9 Apr.3 Mar. Feb. Allf<WMta 98.8 4 99.0 100.1 113.6 117.3 118.4 All commodities except farm product* , ... ........... 100.3 100.4 100.6 Textile products, excluding hard fiber prodnats 98.2 98.3 98.4 96.4 4100.6 101.5 Bituminous coal—domestic s iz e s ......_____ . . . ____ Refined petroleum products_______________ . . . ____ 98.2 98.2 97.1 98.9 98.9 98.9 E ast Coast markets________ . . . . . _____ _______ __ _ Mid continent, markets 99.7 98.6 88.6 Gulf Coast markets____ ______ _____ ___ ______ 97.7 97.7 97.9 90.7 90.7 90.7 Pacific Coast markets________________ . . . ___ 94.5 95.5 98.0 Midwest m ark ets!__________________________ ......................... _ ...... Soaps 103.5 103.5 103.5 Synthetic detergents_______________ _________ Pharmaceutical preparations______________ _____ Anti-infectives5_______ ________________ Antl-arthritics *________________________ 8edatlves and hypnotics *________________ Ataractics 8___________________________ Anti-spasmodlcs and antl-chollnerglcs *_____ Cardiovasculare and anti-hypertensives •____ Dorm ones * ..................... Diuretics* ............ ..... _ _ .. Dermatologicals1______________________ Hermatinics5_________________________ Analgesicss___________________________ Anti-obesity preparations5_______________ Cough and cold preparations *____________ Vitamins1____________________________ Proprietary preparations •___________________ Vitaminss____________________________ Cough and cold preparations < . .. Laxatives and elimination aids *______ __ Internal analgesics4_____________________ Tonics and alteratives *__________________ External analgesics4____________________ Antiseptics4__________________ ______ Antacids4____________________________ Lumber and wood products (excluding millwork)___ Softwood lnmhar 1 See footnote 1, table D-3. a See footnote 2, table D-3. * Preliminary. ‘ Revised. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99.6 99.6 96.8 96.8 95.7 95.7 88.5 88.5 100.6 100.6 112.5 112.5 100.0 100.0 100.0 100.0 100.7 100.7 103.8 103.8 99.6 99.6 100.0 100.0 100.8 100.8 108.8 108.8 101.8 101.8 100.0 100.0 100.7 100.7 88.1 88.1 101.6 101.6 100.3 100.3 100.1 100.1 103.8 103.8 101.9 101.9 100.0 100.0 102.3 102.3 102.9 <102.9 100.1 100.1 96.1 495.4 96.5 4 95.6 99.6 96.6 95.7 88.5 100.6 112.5 100.0 100.0 100.7 103.8 99.6 100.0 100.8 108.8 101.8 100.0 100.7 88.1 101.0 100.3 100.1 101.7 101.3 100.0 102.3 101.7 100.1 94.9 95.3 99.6 96.6 95.7 88.5 100.6 112.5 100.0 100.0 100.7 103.8 99.6 100.0 100.8 108.8 101.8 100.0 100.7 88.1 100.9 100.3 99.5 101.7 101.3 100.0 102.3 101.7 100.1 94.6 95.0 99.6 96.1 95.0 86.6 100.6 112.5 100.0 100.0 98.7 103.8 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.7 100.3 100.1 101.6 101.3 100.0 101.3 100.9 98.9 94.6 95.0 99.6 96.4 95.4 87.6 100.6 112.5 100.0 100.0 101.6 103.8 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.7 100.3 100.1 101.6 101.3 100.0 101.3 100.9 98.9 95.2 95.6 Sept. Aug. July June May Apr. 99.6 119.0 100.8 99.2 95.0 98.0 97.8 101.4 99.2 91.4 90.8 102.2 98.9 99.3 99.7 118.3 119.4 118.9 100.6 100.7 100.8 99.2 99.2 99.0 94.0 93.6 95.4 98.1 97.9 98.9 97.8 99.0 100.0 101.4 98.6 99.4 97.2 96.0 97.9 92.9 92.9 89.3 93.4 95.9 98.4 102.2 102.1 102.1 99.8 96.3 95.4 87.6 100.6 112.5 100.0 100.0 100.9 103.8 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.5 99.6 100.1 101.6 101.3 100.0 100.8 100.1 98.9 95.6 96.1 102.9 119.8 101.2 98.7 98.1 99.2 97.8 101.4 99.2 91.4 97.2 103.5 99.8 96.3 95.4 87.7 100.6 112.5 100.0 100.0 100.9 103.8 99.6 100.0 100.8 108.6 101.8 100.0 100.6 88.1 100.5 100.3 100.1 101.6 101.1 100.0 100.7 100.1 98.9 96.1 96.8 100.5 121.6 100.8 99.0 95.9 97.2 97.8 101.4 99.2 91.4 87.0 102.2 99.8 96.3 95.4 87.7 100.6 112.5 100.0 100.0 100.9 103.8 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.5 100.3 100.1 101.6 101.1 100.0 100.7 100.1 98.9 96.4 97.3 99.8 96.4 95.5 87.9 100.6 112.5 100.0 100.0 100.9 104.2 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.5 100.3 100.0 101.5 101.1 100.0 100.7 100.0 98.9 96.8 97.6 99.8 98.5 98.4 98.7 100.6 112.5 100.0 100.0 100.9 104.2 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.7 100.3 100.0 102.0 101.1 100.0 101.2 100.0 100.6 96.6 97.1 99.8 98.4 98.4 98.7 100.6 112.6 100.0 100.0 100.9 104.2 99.6 100.0 100.8 108.5 101.8 100.0 100.6 88.1 100.7 100.3 lOOO, 102.0 101.1 100.0 101.2 100.0 100.6 96.4 67.0 99.4 100.1 101.4 4103.0 110.7 108.8 109.5 108.0 94.6 90.8 97.7 98.0 99.6 100.4 101.3 102.8 110.5 108.7 109.2 107.7 93.9 90.8 97.7 98.1 99.9 100.5 101.3 102.8 110.4 109.0 109.1 107.3 93.9 90.8 97.7 98.3 100.2 100.5 101.4 102.9 110.5 109.1 109.3 104.6 93.9 90.8 97.7 98.4 100.7 100.5 101.5 103.0 110.5 109.2 109.4 106.6 92.7 90.8 97.7 98.5 101.0 100.5 101.5 103.1 110.3 109.0 109.4 107.2 92.7 90.8 98.3 98.9 1962» 1961 100.6 119.2 100.9 98.8 98.3 98.2 99.4 98.2 98.6 90.9 94.2 100.0 107.9 100.8 97.7 99.9 69.3 100.9 99.6 101.2 89.9 93.5 99.8 98.3 98.3 98.7 100.6 112.5 100.0 100.0 100.9 104.2 98.5 100.0 100.6 108.5 101.8 100.0 98.9 88.1 100.4 100.0 100.0 101.2 101.1 100.0 101.2 100.0 100.6 96.2 96.1 102.6 101.4 99.7 100.8 98.9 97.3 99.3 96.9 99.3 93.1 100.6 100.3 112.5 102.6 100.0 100.0 100.0 100.0 100.5 100.5 104.0 101.9 99.6 100.0 100.0 100.0 100.7 100.2 108.5 1106.1 101.8 100.9 100.0 100.0 99.4 100.0 88.1 95.0 100.5 100.1 100.1 100.0 100.0 100.0 99.8 101.1 101.2 100.4 100.0 100.0 100.8 100.0 100.2 100.0 99.6 100.0 95.6 94.7 95.9 93.5 101.5 100.6 101.5 103.1 110.2 109.0 109.3 107.9 92.7 90.8 98.3 98.9 100.1 100.5 101.4 102.9 110.5 108.8 109.4 107.4 93.0 90.8 98.5 98.3 98.7 101.0 101.7 102.9 108.3 106.6 108.0 108.7 88.2 92.5 96.2 98.6 ' New series. January 1961 = 100. « Metals and metal products, agricultural machinery and equipment, and motor vehicles. 763 D.—CONSUMER AND WHOLESALE PRICES T able D-5. Indexes of wholesale prices,1 by stage of processing and durability of product [1957-59=100] » A nnual averag e 1962 1963 C o m m o d ity g roup A p r.3 M a r. A ll co m m o d ities______ ____ _____ ___________________ F eb . Jan. D ec. N ov. O ct. S ept. A ug. J u ly Ju n e M ay A p r. 1962» 1961 99.8 99.9 100.2 100.5 100.4 100.7 100.6 101.2 100.5 100.4 100.0 100.2 100.4 100.6 100.3 95.0 93.9 96.5 94.5 92.8 96.7 97.1 96.8 9 7 .4 96.1 94.9 97.9 S ta g e o f p r o c e s s in g C ru d e m a te ria ls for fu rth e r processing............................. C ru d e foodstuffs a n d feedstuffs__________________ C ru d e n onfood m a terials except fu el_____________ C ru d e nonfood m a terials, except fuel, for m a n u fa c tu rin g _____________________________ C ru d e nonfood m a te ria ls, except fuel, for eons tru c tio n ___________________________________ C ru d e fu e l__ _ __________________________________ C ru d e fuel for m a n u fa c tu rin g _________ _______ C ru d e fuel for n o n m a n u fa c tu rin g ____________ In te rm e d ia te m a terials, s u p p lie s, a n d c o m p o n e n ts___ In te rm e d ia te m a te ria ls a n d co m p o n en ts for m a n u fa c tu rin g __________________________________ In te rm e d ia te m a te ria ls for food m a n u fa c tu rin g . I n te rm e d ia te m a te ria ls for n o n d u ra b le m a n u fa c tu rin g ___ ____________ ______ ______ __ In te rm e d ia te m a te ria ls for d u ra b le m a n u fa c tu rin g ___________________________________ C o m p o n e n ts for m a n u fa c tu rin g ______________ M a te ria ls an d co m p o n en ts for c o n stru c tio n P ro cessed fuels a n d lu b ric a n ts ___________________ P ro cessed fuels a n d lu b ric a n ts for m anufactu r in g ___ _________________________________ P rocessed fuels a n d lu b ric a n ts for n o n m a n u f a c t u r in g __________________________________ C o n ta in ers, n o n re tu rn a b le _______________________ S u p p lies ___ _______________________________ S u p p lies for m a n u fa c tu rin g __________________ S u p p lies for n o n m a n n fa e tn rin g M a n u fa c tu re d a n im a l feeds______________ O th e r su p p lie s ___________________________ 95.6 94.7 96.4 96.8 97.1 95.8 96.8 97.1 95.8 97.6 98.2 95.9 97.4 99.2 97.9 100.6 96.0 96.3 95.2 95.1 95.3 95.3 97.2 97.4 96.6 96.5 96.0 97.0 95.2 94.0 97.3 95.8 94.7 97.9 96.5 95. 5 98.3 96.5 96.8 97.4 97.9 96.9 97.4 103.3 103.2 103.3 103.1 101.0 98.7 99.6 99.7 101.0 98.8 99.6 99.7 101.2 98.8 99.7 99.7 103.2 101.8 101.8 102.0 102.8 102.3 102.2 102.4 100.0 100.0 100.1 100.2 100.1 100.1 100.1 100.2 100.1 100.3 100.2 100.4 100.5 100.2 100.3 99.2 100.5 99.8 102.6 95.9 96.2 95.8 103.0 102.8 102.7 103.1 103.1 105.4 105.3 105.8 103.0 105.6 105.5 106.0 95.7 96.0 102.7 103.2 103.3 103.3 103.3 103.3 104.0 103.4 103.2 102.0 103.2 [103.9 103.4 103.2 102.0 103.5 U04.3 103.7 103.5 102.2 103.3 100.6 100.6 100.8 98.8 98.6 98.7 98.8 103.7 101.2 101.2 101.0 98.7 98.8 98.9 99.0 99.9 100.2 100.8 100.4 99.1 99.8 99.2 99.4 99.3 99.5 98.8 99.4 99.6 100.4 97.7 97.8 98.1 98.3 98.4 98.5 98.0 98.8 99.6 99.7 99.8 100.0 98.3 98.2 98.5 98.6 99.0 99.0 98.9 98.8 100.8 100.8 100.3 100.6 ■99.9 100.1 100.1 100.4 100.5 100.6 100.6 100.7 100.7 98.8 98.6 98.6 98.7 98.7, 98.7 98.9 98.8 98.9 98.9 99.0 99.1 99.2 99.3 99.3 99.5 99.7 99.8 101.4 101.7 102.0 102.1 100.8 101.4 101.2 101.2 101.5 100.4 98.8 99.3 101.2 100.6 99.6 99.7 101.6 102.0 102.2 101.9 101.9 102.6 102.7 102.9 102.9 100.9 102.4 102.1 102.2 102.4 102.3 102.6 97.1 97.1 97.2 97.3 97.3 97.4 97.6 98.6 100.9 105.1 106.0 104.2 105.4 101.6 98.4 101.1 106.4 105.7 106.1 110.5 101.5 97.6 101.4 106.7 105.8 106.5 111.4 101.5 98.4 101.6 106.6 105.7 106.4 111. 5 101.3 99.4 101.5 105.9 105.9 105.3 109.1 101.1 100.0 101.6 105.6 105.9 104.9 108.3 101.0 100.4 101.4 105.0 106.1 104.0 106.2 100.9 100.6 101.4 105.2 106J)i 104.3 107.0 100.8 99.0 101.6 104.3 105.8 103.2 103.7 101.1 99.6 102.1 104.7 105.9 103.7 104.5 101.3 99.7 102.6 103.8 105.9 102.4 100.8 101.6 99.5 102.7 104.2 105.7 103.0 101.8 101.9 100.8 100.0 98.3 94.2 98.9 101.7 99.7 102.9 104.6 101.3 101.0 100.3 99.0 99.5 98.9 101.8 99.7 102.9 104.5 101.4 101.5 100.9 100.4 98.9 100.7 101.7 99.8 103.0 104.6 101.4 101.8 101.2 101.4 103.4 101.1 101.7 99.8 103.0 104.7 101.5 101.6 101.0 100.7 95.9 101.4 101.8 99.9 103.0 104.7 101.4 102.0 101.5 102.1 102.8 101.9 101.7 100.0 102.9 104.6 101.3 101.9 101.5 101.9 100.9 102.0 101.8 99.9 102.8 104.5 101.3 102.6 102.3 103.9 101.5 104.3 101.7 100.1 102.9 104.5 101.3 101.7 101.1 101.3 96.3 102.1 101.4 100.1 103.0 104.5 101.5 101.5 100.8 100.3 93.4 101.4 101.5 100.2 103.0 104.6 101.5 101.1 100.4 99.3 93.7 100.2 101.4 100.0 102.8 104.4 101.3 101.2 100.5 99.5 96.7 99.9 101.5 100.0 102.9 104.4 101. 4 T o ta l d u ra b le goods ___ 100.7 100.6 100.7 100.7 100.7 99.0 99.2 99.7 100.2 100.0 T o ta l n o n d u ra b le goods______________________________ T o ta l m a n u faetn re s 100.0 100.2 100.4 100.6 100.6 D u ra b le m a n u fa c tu re s ___________________________ 101.0 100.9 101.0 101.1 101.1 99.1 99.3 99.7 100.0 100.0 N o n d u ra b le m a n u fa c tu re s _______________________ 98.4 98.3 99.1 100.2 99.4 T o ta l ra w or s lig h tly processed goods________________ D u ra b le ra w or s lig h tly processed goods__________ 89.4 88.7 88.6 87.9 86.4 N o n d u ra b le ra w or s lig h tly processed goods............. 98.9 98.9 99.7 100.9 100.1 100.7 100.5 100.7 101.1 100.2 100.5 85.4 101.4 100.7 100.4 100.7 101.1 100.2 100.9 101.2 101.1 101.3 100.9 101.0 101.0 101.0 101.1 101.2 F in is h e d goods (goods to u sers, in c lu d in g ra w foods a n d fuels) ________________________________________ C o n su m er finished goods_________________________ C o n su m er foods_____________________________ C o n su m er cru d e foods C o n su m er processed foods________________ C o n su m er o th e r n o n d u ra b le goods___________ Consumer d u ra b le goods_____________________ P ro d u c e r fin ish ed goods___________ _____________ P ro d u c e r finished goods for m a n u fa c tu rin g ___ P ro d u c e r finished goods for n o n m a n u fa c tu rin g . 99.9 103.4 104.2 105.5 103.1 101.9 102.1 99.4 102.2 104.5 105.7 103.5 104.1 101.3 100.1 100.9 102.3 105.2 100.6 97.5 100.5 101.4 100.7 100.1 97.6 100.4 101.6 99.9 102.9 104.4 101. 4 101.7 101.2 101.3 98.6 101.7 101.6 100.0 102.9 104.4 101.4 101.4 100.9 100.4 97.6 100.8 101.5 100.5 102.5 103.8 101.2 D u r a b ility o f p r o d u c t i See footnote 1, table D-3. * See footnote 2, table D-3. * Preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100.0 99.8 99.3 99.5 99.7 100.7 100.8 100.6 100.7 100.7 101.3 101.4 101.4 101.5 101.5 100.0 100.1 99.8 99.8 99.9 100.2 101.1 99.2 98.4 97.3 98.1 98.8 86.3 87.8 88.3 86.8 86.7 89.1 90.8 101.0 101.9 99.9 99.0 97.9 98.6 99.2 101.0 100.1 100.8 101.3 100.1 99.5 89.2 100.1 101.3 99.6 100.7 101.4 100.0 98.3 95.2 98.5 N ote: For description of the series by stage of processing, see “ New BLS Economic Sector Indexes of Wholesale Prices,” M o n t h l y L a b o r R e v ie w , December 1955, pp. 1448-1453; and by durability of product and data be ginning with 1947, see W h o le s a le P r i c e s a n d P r i c e I n d e x e s , 1 9 5 7 , BLS Bul letin 1235 (1958) MONTHLY LABOR REVIEW, JUNE 1963 764 E.—Work Stoppages T able E -l. Work stoppages resulting from labor-management disputes 1 Workers Involved in stoppages Number of stoppages Month and year 193K-39 (fivfirftgft) _ _ ___________________ 1947-49 (average) __ ___________________ 1Q4fi ........................................ ................................. .. 194« ______________________________________ 1947 ________________________________________ 1943 _ ________________ _____ ___________ 1949 ________________________________________ 1950 „ ________________________________________ _____ 1951 ________________________________________ 1952 , ___ . . . . . . . . 1953 _ ______________ _______ ________ ________ 1954 _______ _______ ________________________________ 1955 ________________________________________ 195« _ ________________________________________ 1957 _ __________________________________________ 1958 1959 19«0 19«1 19«2 _ _ _ _ _ ______________ ________________________________________ ________________________________________ ______________________________________________ __ ____ ______ __________________________ 1962: April................................................................................ M ay _______________________ _______________________ June _______________________________________________ July _______________________________________________ ' August______________________________________ September___________________________________ October_____________________________________ November___________________________________ December____________________________________ 1963: January 1__________________________ __________ February *___________________________________ M arch J_____________________________________ A p rilJ______________________________________ Beginning in month or year 537 653 695 621 617 541 506 442 331 230 360 320 350 475 200 In effect dur ing month 114,000 212,000 151,000 98,100 129,000 91,700 98,800 81,000 45,200 75,000 60,000 45,000 100,000 Number Percent of estimated working time 16,900,000 39,700,000 38,000,000 116,000,000 34,600,000 34,100,000 60, 500,000 38,800,000 22,900,000 59,100,000 28,300,000 22,600,000 28,200,000 33,100,000 16, 500,000 23, 900,000 69,000, 000 19,100,000 16,300,000 18,600,000 2 340 442 436 355 352 297 261 230 133 225 350 Beginning in month or year 1,130,000 2,380,000 3,470,000 4,600,000 2,170,000 1,960,000 3,030,000 2,410,000 ,220,000 3,540,000 2,400,000 1, 530,000 2,650,000 1,900,000 1,390,000 2,060,000 1,880,000 1,320,000 1,450,000 1,230,000 2,862 3', 573 4,750 4,985 3; 693 3,419 3,606 4,843 4, 737 5,117 5,091 3,468 4,320 3,825 3,673 3,694 3,708 3,333 3,367 3,614 i The data include all known strikes or lockouts involving 6 or more workers and lasting a full day or shift or longer. Figures on workers involved and man-days idle cover all workers made idle for as long as 1 shift in estab lishments directly involved in a stoppage. They do not measure the indirect https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In effect dur ing month Man-days idle during month or year 146,000 262,000 311,000 195,000 196,000 181,000 155,000 171,000 146, 000 1,130,000 2,520, C00 3,020,000 ,020,000 1,940,000 1, 590,000 1,350,000 981,000 1,330,000 185,000 2,340,000 ,100,000 ,110,000 1,050,000 120,000 90,000 130,000 2 1 1 0.27 .46 .47 1.43 .41 .37 .59 .44 .23 .57 .26 .21 .26 .29 .14 .22 .61 .17 .14 .16 .12 .25 .31 .21 .18 .18 .13 .10 .14 .23 .12 .12 .10 or secondary effect on other establishments or industries whose employees are made idle as a result of material or service shortages. * Preliminary. U . S . SOVfiüMMiNT PKIKTINS 0 F F I C E » I 9 8 3 New Publications Available For Sale Order sale publications from the Superintendent of Documents, Government Printing Office, Washington 25, D.C. Send check or money order, payable to the Superintendent of Documents. Currency sent at sender’s risk. Copies may also be purchased from any of the Bureau’s regional offices. (See inside front cover for the addresses of these offices.) BLS Bulletin 1344: Employment and Changing Occupational Patterns in the Railroad Industry, 1947-60. 32 pp. 30 cents. Occupational Wage Surveys: BLS Bulletins— 1345-25: Salt Lake City, Utah, December 1962. 26 pp. 25 cents. 1345-29: Trenton, N.J., December 1962. 28 pp. 25 cents. 1345-30: Buffalo, N.Y., December 1962. 32 pp. 25 cents. 1345-32: Denver, Colo., December 1962. 22 pp. 25 cents. 1345-35: Dayton, Ohio, January 1963. 20 pp. 20 cents. 1345-36: Memphis, Tenn., January 1963. 22 pp. 25 cents. 1345-37: New Haven, Conn., January 1963. 20 pp. 20 cents. 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(Baltimore Plant), 1944-61. 19 pp. BLS Report 235: Deferred Wage Increases and Escalator Clauses, 1952-63. 61 pp. BLS Report 237-14: Consumer Expenditures and Income, Portland, Maine, 1960. 12 pp. Income, Education, and Unemployment in Neighborhoods: New York City; Queens. 71 pp. Baltimore, Md. 32 pp. Oakland, Calif. 26 pp. Buffalo, N.Y. 22 pp. Oklahoma City, Okla. 22 pp. Cleveland, Ohio. 34 pp. St. Louis, Mo. 30 pp. Memphis, Tenn. 22 pp. San Francisco, Calif. 34 pp. Milwaukee, Wis. 32 pp. Tampa-St. Petersburg, Fla. 24 pp. New Orleans, La. 34 pp. Washington, D.C. 34 pp. New York City; Brooklyn. 84 pp. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H A N S O N -B E N N E T T l3o M A G A Z IN E AGENCY NO W A3ASH AVE C H IC A G O L R -D E C I IL L H U n it e d S t a t e s G o v e r n m e n t P r in t in g O f f i c e D IVISIO N O F P U B L I C D O C U M EN TS W a s h in g t o n 2 5 , D.C. 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