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N e w England Labor and Labor Problems A Reprint of a Special Section of Eight Articles from the Monthly Labor Review, March 1957 B u lle tin No. 1212 U N IT E D S T A T E S D E P A R T M E N T O F LA B O R James P . M itchell, S e cre ta ry BUREAU O F LABOR STA TISTIC S E v a n Clagne, Commissioner N e w E n g la n d L a b o r a n d L a b o r P ro b le m s A Re p rint of a Special Section of Eig h t Articles from the M onthly Labor Review, March 1957 B u lle tin No. 1212 UNITED STATES D E P A R T M E N T O F L A B O R James P. Mitchell, S e c re ta ry B U R E A U O F L A B O R STATISTICS Ewan Clague, Commissioner For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25v D. C. Price 35 cents Contents Page An editorial n ote _________________________________________________________________________________________________ iv C ontributors to the special section____________________________________________________________________________ Profiles of worker fam ily living in B oston , 1 8 7 5 -1 9 5 0 __________________________________________________ vi 1 Su m m ary of findings________________________________________________________________________________________ 1 R ise in levels of liv in g _____________________________________________________________________________________ 3 M assach u setts w age-earner fam ilies, 187 5 ___________________________________________________________ M assachusetts cotton -textile workers, 1 8 8 8 _________________________________________________________ 4 5 W a g e earners in M assachusetts, 1 9 0 1 ________________________________________________________________ 6 B o ston wage and salaried workers, 1 91 8 _____________________________________________________________ 7 B oston wage and clerical workers, 1 9 3 4 -3 6 _________________________________________________________ 8 B oston wage and clerical workers, 1 9 5 0 ______________________________________________________________ 9 C on clu sion ________________________________________________________________________________________________ 10 H istorical patterns and recent trends in e m p lo y m e n t___________________________________________________ 11 D eterm in an ts of m arkets for m an u factures_________________________________________________________ 11 In evitable decline in relative p osition ________________________________________________________________ 12 F actory em p loym en t patterns since 1 9 3 9 ____________________________________________________________ 13 T rends in nonm anufacturing e m p lo y m e n t___________________________________________________________ 14 In trastate em p loym en t tren d s________________________________________________________________________ 15 Conclusions_______________________________________________________________________________________________ 16 L ab or-m an agem en t relations___________________________________________________________________________________ Industrial transition and labor relations____________________________________________________________ 18 18 E x te n t of unionization__________________________________________________________________________________ 19 F actors shaping m anagem ent p o lic y _________________________________________________________________ 19 Bargaining and econom ics______________________________________________________________________________ Public and neutral influences__________________________________________________________________________ 20 22 M an ag em en t training__________________________________________________________________________________ 22 U n ion leadership_________________________________________________________________________________________ 22 C on clu sion ________________________________________________________________________________________________ 23 W a g e s and personal in co m e___________________________________________________________________________________ 24 R egional wage and incom e levels_____________________________________________________________________ 24 W a g e s in soft-goods industries________________________________________________________________________ 25 W ages in m etalw ork in g_________________________________________________________________________________ 26 C o m m u n ity w age levels-------------------------------------------------------------------------------------------------------------------------- 27 Union wage scales_______________________________________________________________________________________ 28 R elated wage practices_________________________________________________________________________________ 29 C om parative living co sts_______________________________________________________________________________ 30 S u m m a ry _________________________________________________________________________________________________ T h e problem of depressed areas____________________________________________________________________________ 30 31 Failure to ad apt to ch an ge------------------------------------------------------------------------------------------------------------------M agn itu d e of the p ro b lem ____________________________________________________________________________ E ffects upon the co m m u n ity___________________________________________________________________________ State and local com m u n ity remedial efforts________________________________________________________ 32 33 33 34 Proposed federal legislation___________________________________________________________________________ 34 Conclusions_______________________________________________________________________________________________ L ab or turnover in textile m ills_________________________________________________________________________________ C om position of the work force------------------------------------------------------------------------------------------------------------- 35 36 36 T o ta l separations________________________________________________________________________________________ 37 Q uit ra te s_________________________________________________________________________________________________ N ew em p lo yees__________________________________________________________________________________________ 38 38 Job ap p lican ts___________________________________________________________________________________________ R easons for qu its------------------------------------------------------------------------------------------------------------------------------------Principal conclusions____________________________________________________________________________________ Collective bargaining and com petitive cost in the shoe in d u stry______________________________________ 39 39 39 40 T h e im portance of labor cost in com p etition _______________________________________________________ 41 U nion-nonunion changes in earnings le v e l___________________________________________________________ 42 Regional earnings levels__________________ 44 Conclusions_______________________________________________________________________________________________ T h e grow th of the aircraft in d u stry_______________________________________________________________________ D evelop m en t of N ew E ngland aircraft in d u stry___________________________________________________ 45 46 46 E m p lo ym e n t and earnings in aircraft________________________________________________________________ 48 T h e ou tlo o k ----------------------------------------------------------------------------------------------------------------------------------------------- 50 (H I) N ew England Labor and Labor Problems N e w E n g l an d • • • ,as the late Bernard D e Yoto admiringly put i , “is the t first American section to be finished, to achieve stability in the conditions of its l f . It is the first old civilization, the first perma ie nent civilization in America.” Hence all Americans, as a matter of tradition, possess a sympathetic interest in the area that cradled our national development. T h e problems which beset the area today are thus doubly worthy of attention. T h e labor, industrial relations, and general economic problems of N e w England are complex, and in some ways they differ from those prevailing in other areas of the country. N o group of eight articles can cover all significant aspects of such problems. W h a t has been attempted here is a selective analysis of certain tendencies deemed to be of importance, interest, and aid in understanding what is taking place in N e w England. T h e reader should not look for more. T h e problems of N e w England are and have been a subject for study b y both local and national commissions, and it is to the reports of these inquiries that the reader should turn i he desires detailed f statistical layouts and packaged recommendations. T h e situations at which seven of these articles point touch on the problem areas and industries, the broadening base of manufac turing and the increasing influence of n e w industries, the real lack of homogeneity within the region in respect to wage levels and labor market characteristics, the mature and generally conservative prac tice of labor relations and collective bargaining. T h e eighth article, concerned principally with Boston, portrays the changing level of living of the wage earner and his family over the course of threequarters of a century. Generally speaking, the authors have assumed a critical but optimistic attitude toward the particular problems they are dis cussing, and they recognize also that the problems are plainly but inextricably intermeshed. N e w England is in a state of thorough going change in its economic base and in the relationship of one State to another. A n economy once dominated b y textiles is n o w experiencing the ascendance of aircraft engine and electrical equip men t manufactures. But the latter are not pushing ahead directly in the path of the receding textiles. T h e movements frequently affect different localities. Consequently, there are the serious labor (IV ) • • • An Editorial Note force dislocations and social problems privy to distressed areas. Such a state of pressures and resistances disturbs wage relationships, variegates wage levels, and tends to m a k e both labor and ma n a g e men t cautious and conservative in some of their collective bargaining relationships. Despite the travail which some N e w England industries, c o m munities, and workers are experiencing, most of the authors feel that the future holds stability and growth in store, in part because of the character and tradition of the N e w England people. Perhaps what is lacking in the series, although it is hinted at in several of the articles, especially in the review of living and spending habits, is a separate treatment of the special ethos of the N e w Englander. In 1888, the first U. S. Commissioner of Labor, in reporting on the status of the Boston working girl, m a y have caught a glimpse of what is meant b y this: “Music, literature, art, lectures, are all within reach, and the working girls of Boston avail themselves of such privileges to a great extent. A buttonhole maker gave as her reason for not living in the suburbs, where living was cheaper, that she would then be debarred from lectures, concerts, oratorios . . . Suspender makers . . . belong to Browning clubs, and discuss the tariff and similar vital issues. W o r k is regarded as honorable, and the barriers which exist between people of leisure and wage earners m a y in some cases be overcome.” It is worthwhile to note, in closing, that the first experiment by the Monthly Labor Review in publishing a group of articles on a given subject or locality was ventured in July 1946 on the subject Reconversion in N e w England. A n editorial note introducing those five articles somewhat cautiously warned the reader that they were “s u m m a r y in scope and are not intended to give a comprehensive survey of general labor conditions in the region.” A s a matter of fact, n o w that more than a decade has passed there probably is no risk in revealing the editorial secret that availability of the articles for that issue was completely unplanned, even i fortuitous. Ever f since, there has been a residue of guilty feeling that something better was due N e w England. It is with confidence that the following articles are offered as a m o d i c u m of redemption. — L. R. K. (V) Contributors to the Special Section T h e Bureau of Labor Statistics is profoundly grateful to the authors of the eight articles in this issue of the Monthly Labor Review which m a k e u p the special section entitled “N e w England Labor and Labor Problems.” Each author is a specialist on the particular subject of his article and also a working resident of N e w England. T h e patience of all authors has been strained during the m a n y months this project has been under way, but their diligence has been unflagging; it certainly has been fruitful. N o effort has been m a d e to limit or otherwise influence the point of view of the authors to conform with any official policy with respect to the general subject matter. E L eonard A r n o l d , author of w an L abor C lague, T urnover in Commissioner oj Labor Statistics T extile M ills, is the D irector of Research of the N orthern T extile Association. E . R . L i v e r n a s h , author of Collective Bargaining and C om petitive C ost in the Shoe In du stry, is an Associate Professor of Business A dm inistration at the G raduate School of Business A dm inistration, H arvard U niversity. W e n d e l l D . M a c d o n a l d , author of Profiles of W orker F am ily L iving in B oston, 1 8 7 5 1950, is the Director of the N ew E ngland Regional Office, Bureau of L abor Statistics, U . S. D ep artm en t of Labor. W il l i a m H . M i e r n y k , author of T h e Problem of Depressed Areas, is the D irector of the Bureau of Business and Econom ic Research, N ortheastern U niversity. P a u l V . M u l k e r n , author of W ages and Personal Incom e, is the W age A n alyst of the N e w E ngland R egional Office, Bureau of L abor Statistics, U . S. D ep artm en t of L abor. A . H o w a r d M y e r s , author of L ab or-M a n ag em en t Relations, is the D irector of the L abor R elations In stitu te, N ortheastern U niversity. E d w a r d T . O ’ D o n n e l l , author of Historical Patterns and Recent T rends in E m p lo ym e n t, is the M anpow er and E m p lo ym e n t A n alyst of the N ew E ngland Regional Office, Bureau of L abor Statistics, U . S. D ep artm en t of Labor. D a v id P i n s k y , author of T h e G row th of the Aircraft Indu stry, is the Director of Research and Inform ation, Connecticut L abor D ep artm ent. (VI) Profiles o f W o r k e r F a m i l y L i v i n g in B o s t o n , 1875-1950 Seventy-five years of steadily growing incom credit, and technology e, ha greatly changed patterns of expenditures of worker families ve in Boston. W end ell D. M acdonald was only 35.4 percent. This was a positive sign of rising living standards according to the Engelian hypothesis.2 The percentage of expenditure al located to “sundries,” or miscellaneous, advanced from only 6.2 percent to 35.6 percent over the three-quarters of a century. This kind of trend i regarded as a sign of material improvement by s consumption analysts. The increase in number of workers owning their own homes has been marked. In 1875, only 1 percent of those sur veyed were homeowners and, by 1901, the ratio was 15 percent for Massachusetts families studied. Among Boston families surveyed, the ratio of homeowners to total families increased from 9 percent in 1918 to 27.4 percent in 1950. Worker-family money income in current dollars was 5 times as high in 1950 as in 1875, while real income in 1950 dollars increased by only 79 per cent over the same span of time. The 79-percent gain in real annual earnings occurred mostly between World War I and 1950. h e e c o n o m ic p r o f il e of the Boston wage earner and his family in 1950 was vastly altered from that of his 1875 counterpart. Seventy-five years of sweeping transition in the manner of day-to-day existence, guided by technological, educational, and institutional advances, had heightened and brightened, at least in a material sense, the manner of living of workers in the Nation’ oldest urban area. s Students of the mores of Boston and Bay State worker families have access to the findings in six comprehensive studies of worker-family income, savings, and expenditures. Studies made by Federal or State agencies provide data on the ways in which Boston or Massachusetts wageearner families exchanged their funds, and in re cent years their credit also, for goods and services in 1875, 1888, 1901, 1918, 1934-36, and 1950.1 In addition to considering the shifts in the manner of family living between various points of time over the past 75 years, this article also explores the special consumption characteristics in 1950 of the Boston area in comparison with those of 10 other large city areas— Baltimore, Chicago, Cleveland, Los Angeles, N e w York, Philadelphia-Camden, Pittsburgh, San FranciscoOakland, St. Louis, and the northern N e w Jersey area. T 1 The approach in all six studies was roughly similar in concept, method ology, and presentation, save that in more recent surveys increased consumer credit has injected complications and added to the need for information about changes in family assets and liabilities. Broad comparisons relating to differences in family income and spending between selected years from 1875 to 1950, separated by rather long intervals, are assumed to be reasonably valid. Definitions, coverage, and concepts are not precisely alike in each study, but there is sufficient comparability among the six surveys to warrant meaningful, although somewhat guarded, conclusions. Sources of the data are: 1875—Massachusetts Bureau of Statistics of Labor, Sixth Annual Report, March 1875, Pt. IV, Condition of Workingmen’s Families, Boston, Wright and Potter, 1875 (pp. 191-450); 1888—U. S. Com missioner of Labor, Seventh Annual Report, 1891, Vol. II, Cost of Production: The Textiles—Pt. Ill, Cost of Living, 1892; 1901—U. S. Commissioner of Labor, Eighteenth Annual Report, 1903, Cost of Living and Retail Prices of Food, 1904; 1918—Cost of Living in the United States, BLS Bull. 357, 1924; 1934-86—Money Disbursements of Wage Earners and Clerical Workers in the North Atlantic Region, 1934-36, BLS Bull. 637, Vol. II, Eleven Cities, 1939; 1950—Family Income, Expenditures, and Savings in 1950, BLS Bull. 1097, Revised, 1953. 2Ernst Engel (1821-96), chief statistician of the Prussian Bureau of Statistics, held that the percentage of family expenditures used to buy food provided “an accurate and truthful measure of the well-being of a people.” See Die Lebenskosten in Belgien. (In Bulletin of International Statistics, Rome, 1895 Vol.. IX, pp. 62-124.) Summary of Findings Boston worker families had extensively im proved their material plane of living by 1950 as compared with any of the earlier years studied. The proportion of total expenditure accounted for by food declined almost steadily from 1875, when food amounted to 56.5 percent, to 1950, when i t (i) 2 Child labor accounted for one-fourth of workerfamily income 75 years ago, but gradually dis appeared, and by the mid-20th century was virtually nonexistent. On the other hand, the importance of the wife’ earnings to the family s budget has increased in the 20th century. The plane-of-living advance made possible by gains in real income since World War I has been greatly assisted by the expansion of consumer credit. A gradual retreat from frugality has occurred over three-quarters of a century. The Boston worker family in 1950 had a lower income than worker families in 9 of 11 large cities of the Nation studied in that year. The mode of living of Boston families in 1950 was not basically different in terms of consumption habits than in other large c t e , except for a few signif iis icant items of spending. The Boston worker family spent the least, the figures show, among the 11 large cities for alcohol, but expended the most for shelter and tobacco. The Boston worker family also had the largest outlay for reading material, but was among the lowest for auto transportation. For food consumption, at home and in restaurants, these families spent close to the median among the Nation’ large c t e . In s iis expenditure for clothing, Boston ranked eighth among the 11 c t e . iis Proportion of Expenditures for Specified Commodity Groups, by Wage-Earner Families in Boston Area and Massachusetts, Selected Periods, 1875-1950 BOSTON AREA MASSACHUSETTS 100% M isc e lla n e o u s C lothing Fuel, and Lig h t H o u sin g Food (in c lu d in g tobacco and a lc o h o l) 1875 UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 1888 1901 1918 1 9 3 4 -3 6 1950 N te Bc u e of ro n in , fig res d nt a d to 10 o : ea s ud g u o o d 0. S u e Dta for 17 - Mssa u o rc : a 8 5 a ch setts B re uof S tistics of L b r. ua ta ao O er Y rs • U S D a en of L b r. B re uo L b r S tistics th ea . . ep rtm t a o u a f a o ta 3 There was l t l evidence that consumption ite patterns were much affected by national origin except with regard to a few specific items in the case of first-generation American families or where religious customs dictated food preferences. The foreign-born heads of families were 69 percent of the group surveyed in 1875, 76 percent in 1888, and 57 percent by 1901. In the 1934-36 survey group, the ratio was 39 percent. B y 1950, i t was only 19 percent. Rise in Levels of Living The mode of living of worker families in Boston, as elsewhere in the Nation, exhibited an astounding transformation between 1875 and 1950. Material standards improved so markedly over this sweep of time that the shift was almost one of kind rather than degree. Economic forces, inventive genius, social reforms, and the aspirations of people of varied backgrounds traced an entirely new economic profile. Burgeoning technological in ventiveness sparked a rise in industrial produc tivity which made possible higher earnings, shorter workweeks, and more leisure for workers and minimized the need for children’ labor to augment s the family’ income. The talent of Americans for s innovation produced and marketed the new varieties of goods and services— canned goods, frozen foods, refrigerators, radios, automobiles, televisions, diaper services, baby foods— which have not only set the tone but practically dictated the mode of modern living. Broadened social consciousness led to pressure for improved housing conditions and factory regulation, through civic action and legislation. A growing awareness of the need for improved sanitation and preventive medical care brought about a healthier, stronger people in the Bay State. Traditionally a leader in programs for social and economic progress, Massachusetts was * See Seventy Years of Service—The Story of BLS: A Special Section, Monthly Labor Review, January 1955. * As long ago as 1853, E. DucpGtiaux, at the International Statistical Con gress, classified family spending into groupings that even today are valid and form the framework of most consumer expenditure studies. One of the twoway Ducp6tiaux classifications has been rejected and his division of elastic expenditure into two groups, “good” and “bad,” is no longer followed by modern statisticians. See Edouard DucpStiaux, Budgets (sconomiques des classes ouvridres en Belgique, subsistences, salaires, population. Brussels, M. Hayez, imprimateur de la Commission centrale de statistique, 1855 (PP. 6-8). * The U. S. Bureau of the Census, in the 1950 Census of Population, reported that 18.1 percent of all married women in the Boston metropolitan area were in the labor force. 421586—57----- 2 among the earliest States to legislate in regard to education, sanitation, working conditions of women and children, and industrial safety. The contributions of the labor movement in urging reforms and sponsoring legislation to improve living conditions and education should not be overlooked. Progressive and enlightened employers have similarly contributed to the great change, often as pioneers. The role of the fact finder was equally valuable in investigating and publicizing the true condition of the worker and his manner of living.3 The pattern of Boston family living, i tech f niques of investigation were adequate, might be measured not only by material consumption but by nonmaterial criteria as well. H o w to measure nonmaterial values remains, of course, an unsolved problem. The lyceum and the local literary society have for the most part disappeared from community l f . Although the symphony orches ie tra and other concert music retain their popularity, and museums and lectures continue to attract Bostonians, such amusements as the horse and dog races, the drive-in movies, and television win large attendance totals. These latter expendi tures would be of the luxurious and improvident type in the Ducpetiaux classification.4 It i gratifying that the children are no longer s forced into employment at an early age to enable the Boston family to make ends meet or to raise family living standards. On the other hand, the working wife or mother spends her time gainfully employed outside the house and away from the children for the length of the work day and week, frequently in order that the components of the new higher standard of living may be purchased.5 The rise in consumer credit accounted for a siz able proportion of the greater spending of Boston families by the year 1950. Current family income was no longer divided in the traditional and ortho dox fashion between current consumption and savings. The savings considerations have been somewhat dampened and income at the halfway mark of the 20th century was more likely to be earmarked for past consumption than for savings. Whatever the reasons— the increase in social se curity, buying in anticipation of wartime short ages, the rise of private pension and health funds, a stout faith in the future, the siren ca of the ll “commercial,” or some shift in workers’ value scales— parsimony appeared to be in f ll retreat. u 4 Massachusetts Wage-Earner Families, 1875 ft* The profile of the wage-earner family 75 years ago6 was completely different from the 1950 counterpart. A study of wage-earner families in Massachusetts in 1875, completed by the Massa chusetts Bureau of Statistics of Labor, recorded that the average size was 5.1 persons, in contrast with 3.5 for Boston in 1950. (See table 1 ) The . annual income of the earlier year families amounted to $763, or $2,180 in 1950 dollars.7 Of t i , $738 was spent for current consumption. hs The consumption pattern of that era was greatly at variance with the 1950’. Not unex s pectedly, and in accordance with Engel’ law of s consumption, a much larger percentage of ex penditure was made for food in 1875 by these lower income families— 56.5 percent, compared with 35.4 percent in 1950. Table 2 and the chart indicate strikingly the decreasing proportion of family expenditures allocated to food purchases over the period of the six studies, with each survey disclosing a smaller percentage than the previous one, except that the 1918 survey indicated an increase from 1901. This latter relationship, however, m a y be attributed to the exceedingly high price level for foodstuffs in the World War I era. Another traditional measure of material well being i the proportion of family expenditures for s the miscellaneous or “sundries” group,8 i e , . . everything except food, housing, fuel and light, and clothing. There has been a steady advance in the proportion spent for this catchall group— from 6.2 percent in 1875 to 35.6 percent in 1950. Not only did total volume of sundry purchases expand, but the number and varieties of goods and services in the mid-20th century market basket were wholly unlike those in the f r t Massachusetts is sampling. A notion of the way in which families lived in 1875 in the Bay State i indicated by the presence s or absence of expenditures for certain prestige possessions among the families sampled. For example, 11 percent of these families owned pianos or organs, 34 percent were the owners of sewing machines, and 52 percent had one or more rooms carpeted. The carpeting was important not only for decorative purposes but also for insulation during cold winters. Twenty-six per cent owned pews in churches. Another important yardstick of family well being i the relative importance of meat versus s vegetables in their diet. Le Play, who greatly influenced Carroll D. Wright, the director of the f r t of these Massachusetts expenditure studies, is has said that “economic progress could be meas ured by changes in the proportion of food expendi ture, especially the relation between animal and vegetable foods.” 9 Consequently, an attempt was made to obtain this relationship by classifying each family by the number of times meat was eaten each day. The tally was as follows: Of 397 families, 83 had meat once a day, 223 twice a day, 88 three times a day, and only 3 ate no meat.1 0 The actual menus of families for three meals a day were collected in this survey and described in detail. Although meat dishes were quite com mon, there was a monotonous similarity, not only from day to day, but from family to family, in the workers’ diet. The usual supper menu was bread, butter, gingerbread, and tea. Not unex pectedly in Boston, baked beans appeared on most family tables each Saturday night, even as today, and the traditional meal of baked beans warmed over for Sunday breakfast was prevalent even in 1875. The ethnic composition of these families apparently had l t l impact on food ite consumption, as families ate what was available, not what they would choose because of tradition or custom in the old country. • For 1875, the figures presented in this article are the results of personal investigations by agents of the Massachusetts Bureau of Statistics of Labor in the “ condition, social and pecuniary,” of 397 families of workingmen in 15 cities and 21 towns of Massachusetts, which were representative of “ places where considerable business was carried on and wage-laborers congregated.” The heads of families considered were “ wage-laborers, men of family, and with comparatively few exceptions, having children dependent upon them for support. . . . As regarded occupations, those prominent in or peculiar to certain towns, were designated as proper for investigation” : i. e., “. . . mill operatives at the seats of textile manufacture; those engaged in building trades in large or growing towns; leather-finishers and shoemakers, in those places devoted to the manufacture or utilization of leather; metalworkers in the foundry districts; out-door laborers where public improvements were in progress, or the moving of merchandise carried on to a great extent; and finally, shop trades in those towns having prominent or peculiar industries.” 7Adjusted by means of data in index of estimated cost of living in U. S., 1820-1913, compiled by the Federal Reserve Bank of New York and con verted to a 1947-49 base by the Bureau of Labor Statistics, which was linked to the BLS Consumer Price Index for years subsequent to 1913. (Mimeo graphed table available upon request to the Bureau of Labor Statistics.) 8These ratios emphasized by both Engel and Le Play have limited use, according to Carle C. Zimmerman, in his Consumption and Standards of Living (New York, D. Van Nostrand Co., 1936, p. 286). “Those who use advancement expenditures as an index of well-being imply that the more complex and prosperous peoples and societies are happier and have a greater fund of psychological well-being than the simpler peoples and societies.” • F. Le Play, Ferblantier, couvreur et vitrier d’Aix-les-Bains. (In Les ouvriers des deux mondes. Paris, La Soci6te internationale des 6tudes pratiques d’Sconomic sociale, 1859, Vol. 2, pp. 9-62.) 1 In this tally, the combination of eggs at breakfast and fish at supper, or 8 vice versa, was counted as meat for one meal. 5 T a ble 1.— Average fa m ily size, annual income, and current expenditures for goods and services by worker fam ilies sur veyed in the Boston area and M assachusetts, 1875-1950 Number of Year and survey group families in sample Annual in Current ex come after penditures for goods and Aver taxes age services 1 fam ily size Cur 1950 Cur 1950 rent dol rent dol dol lars dol lars lars lars Massachusetts 1875: Wage-earner families.. 1888: Cotton-textile worker families________ ______ 1901: Wage-earner families.. 397 400 2,577 1918: Wage- and salariedworker families_________ 1934-36: Wage- and clericalworker families_________ 1950: Wage- and clericalworker families_________ 407 516 146 Boston area 5.1 5.6 4.6 $763 $2,180 704 2,193 818 2,406 $738 $2,109 661 2,059 731 2,150 5.3 1,477 2,363 1,438 4.0 1, 571 2,766 1, 570 3.5 3,900 3, 900 4, 301 3, 301 2, 764 4, 301 1In this table, the 1875 through 1918 figures count insurance premiums, and the 1875 through 1934-36 figures count gifts and contributions, as current expenditures for goods and services. Conversely, the 1934-36 and 1950 figures exclude outlays for insurance premiums and the 1950 figure also ex cludes gifts and contributions. This should be borne in mind when compar ing the figures in this table. S ource: See text footnote 1. Typically, the families of 75 years ago bought 2 tons of coal per year for $19 and 3 cords of wood for $24 for heating and cooking purposes, and purchased kerosene for lighting at an annual cost which ranged from $3.60 to $6 per year. A few families, however, depended upon their children to gather firewood on the streets. The penchant for self-improvement was exem plified by the fact that 264 of 397 families bought books and papers. Their traits as joiners are shown by the 135 families who allocated funds for membership in fraternal societies. M a n y of these organizations had beneficial features often carrying an insurance privilege. Significantly, only one family in this survey reported a direct outlay for l f insurance premiums, whereas the ie Boston worker-family averaged $169 for insurance premiums in 1950. The most significant findings of this 1875 study, however, are those dealing with the sources of 1 Some understatement of income, the treating of personal insurance not 1 as savings but as an expenditure, and the unusual amount spent on time payments for consumer durables during 1950, in anticipation of expected shortages and price rises because of the Korean conflict, make it virtually impossible to gage with preciseness the amount by which these Boston families went into debt. 1 In 1888, data were obtained from 400 Massachusetts families in which 2 the head of the family was employed in the cotton-textile industry. The figures used in this article are for all families surveyed and not for the “normal families” (families selected according to specified criteria), for which compara tive data are also presented in the original report. worker-family income. For example, about 35 percent of heads of worker families were able by their individual earnings to supply family needs, while 64 percent relied upon the earnings of wives and children, particularly the latter. Commonly, boys at 12 and g irls at 15 were forced by necessity into labor in large numbers. These young people supplied 25 percent of family income, while the father accounted for 75 percent, and the wife for only 0.1 percent. (See table 3 ) The children . accounted for one-fourth to one-third of total earnings, children under 15 accounting for oneeighth to one-sixth. Without the assistance of children, a majority of families would have been in poverty or debt. With the aid of these younger workers, however, one-half of the families saved money, only one-tenth went into debt, and the rest broke even. In retrospect, i seems miraculous that the t average annual income of $763 (or $2,180 in 1950 dollars) reported by these Massachusetts worker families exceeded their reported expenditures by $25, or 3 percent of their incomes. B y contrast, in 1950, with average incomes of $3,900, the average Boston wage-earner and clerical family laid out more funds for current consumption of goods and services than were taken in as income.1 1 Massachusetts Cotton-Textile Workers, 1888 Cotton-textile worker families, with an average of 5.6 members, had annual incomes of $704 in 1888 ($2,193 in 1950 dollars), according to a U. S. Bureau of Labor Statistics study of 400 cottontextile worker families in Massachusetts.1 The 2 difference in annual earnings between the 1875 and 1888 studies i explained partially by the fact s that in the later study the workers were entirely from one industry and not as many higher paid craftsmen were represented. In spite of this limitation, certain meaningful comparisons are possible. First, the food expenditure in 1888 was a smaller proportion of the total outlay than in 1875, as food prices had dropped. Both the fuel and light group and the clothing category ac counted for about the same percent of the total in both years. Housing expense, on the other hand, had declined as a percentage of a l expendi l tures between 1875 and 1888, but this trend was no doubt greatly influenced by the fact that a large number of the textile workers included in 6 the 1888 sample lived in small towns where rents were lower and company-owned houses more common than in the c t e . iis Most important, however, was the rise in the percentage of income available for outlay on the miscellaneous or sundry group, where the per centage rose from 6.2 percent in 1875 to 19.5 percent in 1888, in spite of a lower annual dollar income in the later study. Although retail prices had declined 9 percent from 1875 to 1888, the implication here i that a greater quantity and s variety of goods as well as subsistence items were attainable by wage earners. Although the variety in the family budget was not wide by modern standards, nevertheless by 1888 there began to appear significant expendi tures for amusements. Among the 400 families, 210 reported an average of $11.50 for this category. T w o hundred and eighty-nine families spent an average of $9.47 for tobacco. Labor organization dues were paid by 111 families who averaged $6.56. Books and magazines accounted for $6.47 per family, with 327 making expenditures of this kind. Nevertheless, there was only slender evi dence in these f r t two Massachusetts expendi is ture studies of the amazing changes that were destined to occur by 1950.1 3 As in 1875, i was impossible for wage earners by t 1888 to make accounts balance solely through the husbands’ efforts. On the average, these Massa chusetts cotton-textile worker families could count on an annual income from a l sources of $704, of l which $431 was earned by the husband. In 152 of the 400 families, there was an income from boarders and lodgers; in 105, income from wives’ earnings; and in 138, from children’ earnings. s T able 2. One hundred and ninety-one families reported on the average a surplus of $138 and 136 families reported a deficit of $48, the others breaking even. Wage Earners in Massachusetts, 1901 At the turn of the century, a third survey of family living in Massachusetts was conducted by the Bureau of Labor Statistics.1 B y 1901, the 4 income of Massachusetts wage-earner families had risen to $818, or $2,406 in 1950 dollars. These Massachusetts families spent an average of $731. The proportion of income spent on food was 56.5 percent in 1875, 46 percent in 1888, and only 41 percent in the 1901 study. The outlay for sun dries as a percentage of total expenditures, on the Massachusetts families spent an average of $731. other hand, was higher by 1901— 21.8 percent. It was significant that 2,038 of the 2,577 wage earners’ families in the 1901 survey reported an annual surplus, while only 143 had a d eficit. The remaining 397 families’incomes and expendi tures were approximately in balance. i* In 1887, 1 year previous to the date of this study of cotton-textile workers, Looking Backward, 2000-1887, by Edward Bellamy, was published in Boston (Houghton, Mifflin and Co.), which with its sequel, Equality (New York, D. Appleton and Co., 1897), contained an amazing forecast of the future economic profile of Boston by the year A. D. 2000. Bellamy, in his dream of a future society, described the “electroscope”—his word for television, which he visualized would enter every Boston home by the year 2000. Fur thermore, the programs would be not only for enjoyment, but also for educa tional purposes. Bellamy also anticipated heating and cooking by electricity, and eating from paper plates. The radio would become commonplace in the future, according to Bellamy, but he believed that sound would come through telephones, not aerials and individual sets. Curiously enough, he did not anticipate the automobile and its ability to bring about a complete trans formation in transportation and living habits. h The 1901 survey covered 2,577 families of wage earners and small-salaried workers in Massachusetts during 1899-1902 (most of the data applying to the year 1901). All investigations were limited to families headed by persons with a salary or wage not exceeding $1,200. — D istribution of current expenditures for goods and services by worker fam ilies surveyed in the Boston area and M assachusetts , 1875-1950 Year and survey group Total expendi Food (includ tures for goods ing tobacco and services1 and alcohol) Dol lars Per cent Housing Dol lars Per cent Dol lars Fuel and light Per cent Dol lars 16.8 19.6 $49 44 34 Per cent Clothing Other goods and services Per cent Dol lars Per cent Dol lars $104 11 0 95 14.1 15.3 13.0 $46 129 159 19.5 15.4 9.8 10.9 309 394 1,530 21.5 25.1 35.6 Massachusetts 1875: Wage-earner families............................................... 1888: Cotton-textile worker families................................ 1901: Wage-earner families................. .............................. _ $738 661 731 100.0 100.0 100.0 $417 304 300 56.5 46.0 41.0 $124 83 143 12.6 1918: Wage- and salaried-worker families........................ 1,438 1934-36: Wage- and clerical-worker families.................... 1,570 1950: Wage- and clerical-worker families.......................... 4,301 100.0 100.0 100.0 641 561 1,524 44.6 35.7 35.4 184 319 548 20.3 12.7 Boston area 1See footnote 1, table 1. N ote.—Because of rounding, sums of individual items do not necessarily equal totals. 12.8 80 141 229 Source: See text footnote 1. 6.6 6.7 4.7 6.6 9.0 5.3 222 154 470 6.2 21.8 7 T a b l e 3. — Average annual incom e of worker fam ilies surveyed in the Boston area and M assachusetts , hy source of funds 1875 to 1934-86 * Year and survey group Average income (current dollars) Husband Average income Children Wife Percent of total Average income Percent of total Average income Other Percent of total Percent of total Average income 22.1 24.9 2.7 $70 129 9.9 15.8 8.6 54 97 3.7 Massachusetts 1875: Wage-earner families_____________ 1888: Cotton-textile worker families____ 1901: Wage-earner families______________ $763 704 818 $572 431 665 75.0 61.2 81.3 48 1918: Wage- and salaried-worker families— 1934-36: Wage-and clerical-worker families. 1,477 1,571 1,277 1,302 86.5 83.0 2172 Boston area 1 Data not available for 1950. 2 Earnings of wife and children were combined in the survey reports. In regard to sources of income, a sensational transformation had occurred since the time of the earlier surveys. B y the early 20th century, only 9 percent of the worker families had incomes from the earnings of children, as compared with 35 percent of the families in the 1888 study. About 31 percent of the 1901 families obtained funds from keeping boarders and lodgers and 15 percent derived funds from miscellaneous sources. The average family income from the earnings of the husband amounted to $665 in current dollars, or 81 percent of the total, whereas the wife and children accounted for less than 1 percent and 3 percent, respectively, of the total income, while income from other sources (mostly boarders and lodgers) was 16 percent. Of the 2,577 families in the 1901 Massachusetts sample, 15 percent owned their own homes, while 85 percent rented their dwellings. (See table 4.) In 1875, the percentage of homeowners had been only 1 percent. In the 1901 study, the expenditure patterns of a subsample of 253 families 1 portray the diversity 5 of expenditures and the importance of spending for goods and services which were rarely found in the earlier system of living. For example, 21 per cent of these families contributed to charity, » As these families were selected solely on the basis of their ability to give the information sought in the desired detail, the data must be interpreted with caution. i« For 1918, the figures pertain to 407 wage-earner and salaried-worker families surveyed in Boston. Eligibility requirements for families to be surveyed were: the family must have as a minimum a husband and wife and at least one child who is not a boarder or lodger (thus increasing average family size); the family must have kept house in the locality for the entire year covered: at least 75 percent of the family income must come from the principal breadwinner or others who contribute all earnings to the family fund: all items of income and expenditures of members other than those living as lodgers must be obtainable; the family may not have boarders nor over three lodgers, either outsiders or children living as such; and the family must have no subrental other than furnished rooms for lodgers. Slum or charity families or non-English-speaking families who had been less than 5 years in the United States were not taken. $ 1 2 19 $190 155 0.1 6.8 .2 1.3 210.9 22 (2) 127 00 6.1 Source: See text footnote 1. 92 percent to religious organizations, 52 percent to labor organizations, and 73 percent contributed to other kinds of organizations. B y 1901, the neces sity and importance of insurance had grown in the view of the average wage earner in Massachusetts along with the rise of l f insurance firms, since ie 28 percent of these families made outlays for l f ie insurance and 18 percent for property insurance— expenditures almost nonexistent in 1875 and 1888. These same worker families made an outlay of $79 per year for furniture, $11 for books and news papers, and a similar amount for amusements and vacations. Alcoholic beverages accounted for $18 of their spending and tobacco for $13, in 1901. Boston Wage and Salaried Workers, 1918 The sources and amounts of Boston family in come at the close of World War I are recorded in a Bureau of Labor Statistics study.1 The average 6 wage-earner family size was 5.3 for 407 families for w h o m detailed income and expenditure in formation i presented. s The average annual income of $1,477 in current dollars for these families was double that of the 1888 families and nearly twice that of the 1875 and 1901 families. In 1950 dollars, the relationship was quite different; the 1918 income of $2,363 was less than that in the 1901 study and only about 8 percent more than in the 2 earlier studies. Of the 1918 income, about 86 percent was earned by the husband, 1 percent by the wife, and 9 percent by the children. Other sources accounted for 4 percent. Light i cast upon one aspect of living conditions s of Boston worker families in 1918 by examining housing f c l t e . Although these families did not aiiis uniformly have modern conveniences, nevertheless 8 a major step forward had been made since the earlier studies. Of 373 Boston families who re sided in houses, flats, or apartments,1 206 had 7 bathrooms and practically all had inside flush toilets. Nine percent of these Boston wageearner families owned their residence as compared with 20 percent in 1934-36 and 27.4 percent in 1950. In the earlier Massachusetts studies, only 1 percent were homeowners in 1875, 7.5 percent in 1888, and 15 percent in 1901. Boston Wage and Clerical Workers, 1934-36 The 1934-36 BLS study of wage earners and clerical workers in Boston reported an average family size of 4.0 and an annual income of $1,571 in current dollars, or, in 1950 dollars, $2,766.1 8 The food expenditures amounted to 35.7 percent of the total, but had been 44.6 percent in 1918, while sundry spending accounted for 25.1 percent of the total compared to 21.5 percent 17 years earlier. The proportion of total expenditures going into clothing in the midthirties was lower in Boston (9.8 percent) than in the other large cities studied. In 1934-36, the average amount spent on automobile transportation by wage-earner or clerical families was smaller in Boston than in any other large city. Incidentally, expenditures for this category were only 2 percent of total expendi tures in 1934-36, but were 8.5 percent in 1950. By the mid-1930,s, the proportion of income derived from the chief wage earner of the family was 83 percent, compared with 86 percent in 1918, 81 percent in 1901, and 75 percent in 1875. Other earners (wife and children) accounted for 11 per cent and other sources for 6 percent of the average net money income of $1,571 for the 516 Boston T able 4.—Extent of hom nership am eow ong w orker families surveyed in th Boston area and Massachusetts, 1 7 — 9 0 e 85 15 Percent Year and survey group Total Owning Renting Massachusetts 1875: Wage-earner families___ _ - _ ______ 100.0 1888: Cotton-textile worker families... ___ ... 100.0 1901: Wage-earner families.. _ _. __________ 100.0 1.0 7.5 15.0 99.0 92.5 85.0 1918: Wage- and salaried-worker families____ 100.0 1934-36: Wage- and clerical-worker families.._ 100.0 1950: Wage- and clerical-worker families_____ 100.0 9.0 20.0 27.4 91.0 80.0 72.6 Boston area S ource: See text footnote 1. T able 5.—Percentage distribution, by nativity, of th family e h ds in w ea orker families surveyed in th Boston area and e M assachusetts, 187 — 5 19501 Percent Nativity Massachusetts 1875 Worker family heads.. American bom______ Foreign born______ _ Canada__ __ _ _ Canada (French).. England.. Germany________ Ireland__________ Italy______ Russia___ _ ... Scotland_____ __ Sweden______ ._ Other___ ____ Boston area 1888 1901 100.0 31.5 68.5 7.3 20.2 6.5 33.5 100.0 23.8 76.2 2.8 18.2 22.0 1.2 26.2 1.0 3.3 2.5 100.0 43.3 56.7 14.4 5.6 2.1 26.8 1.3 2.0 2.8 1.7 1934-362 100.0 60.9 39.1 2.7 1.4 1.4 .4 13.8 8. 8 2. 7 .9 7.0 I9603 100.0 81.0 19.0 32 .4 .7 .4 3.7 3.3 2.9 .4 3.3 .7 1 Data not available for 1918. 2 Data applying to 1934-36 are for homemaker, not head of family. See text footnote 19. 3 Data on nativity were not collected in the 1950 BLS study. Data in this column are from the 1950 Census of Population and are for all families (not just wage-earner families) and, therefore, may understate the proportion of foreign born among wage-earner families. Source: See text footnote 1. wage and clerical worker families surveyed in 1934-36. Of the Boston families, 64 percent had a net surplus, 32 percent reported a net deficit, and the remainder came out even. By 1934, the profile of the Boston worker family had undergone immense changes. Over 90 per cent of Boston wage-earner families who owned their houses now had central heat, gas or elec tricity for cooking, running hot water, and inside flush toilets, while 24 percent had electric refriger ators, 54 percent possessed telephones, and 43 per cent had garden space. For the 80 percent who rented, these facilities were less prevalent. Fourteen percent of the Boston families owned automobiles, on which they spent an average of $168 for operation and maintenance. For medical care during the year, Boston wage- and clericalworker families spent an average of $49, while $41 went to community organizations, welfare, and gifts. Clothing outlay had declined from $222 in 1918, to $154 in 1934, partly because apparel 17 Excludes those living in owned dwellings and those whose rent included heat or light. 18 In 1934-36, the group of wage-earner and clerical-worker families surveyed in Boston numbered 516 white families and was confined to those families with 2 or more persons, with family incomes of at least $500 per year, who had not been on relief during the survey year. A $200 per month or $2,000 per year maximum income limit was established for inclusion of clerical workers. No income limit was set for wage earners, but at least 1 earner in a wage-earner family must have been employed for 36 weeks and must have earned at least $300. Families interviewed were drawn from a random sample. Data obtained for Boston pertain to the year ending February 1935. 9 prices had decreased by 14.4 percent in Boston. Relatively few persons owned pews in churches, but large numbers contributed in other forms to religious societies in 1934. Homemakers of 198 families, or 39 percent of the total sample surveyed in 1934-36, were born outside of the United States.1 (See table 5.) Of 9 this number, the predominating national groups of foreign born were Irish (14 percent), and Itali an (9 percent). In the 1875 survey, the ratios were 69 percent of family heads foreign born, with 34 percent of these born in Ireland and 20 percent in England. No information on nativity of either family heads or homemakers was collected in the 1950 survey by the Bureau of Labor Statistics, but the Census of Population for that year indi cated only 19 percent of all family heads in Metro politan Boston were foreign born. This figure may understate the proportion of foreign born among wage earners, which is always higher than among the heads of all families. This transition in composition of population by national origin of family head constituted a major change in the profile of the wage-earner family in Boston. However, apparently incidence of foreign birth little affected expenditure patterns or mate rial wants of Boston worker families. Although there were differences in preferences for specific commodities and services among first-generation families, by far the overriding considerations de termining the manner of family living were level of income, the availability of goods and services, and family size and composition. Examination of the detailed family food menus in the 1875 study and the food item purchases in the 1888 and 1901 surveys by national origin fails to reveal any im portant nationality tendencies in food consump tion, suggesting rapid acceptance of consumption patterns in the country of adoption. Heritage, of course, was important in helping to form the social, political, and cultural patterns of the Boston community. National origin appears to have played a minor role except in such matters as food recipes handed down from mother to daugh- Table 6.—Average m oney receipts, a verage outlays, and i®In the 1934-36 study, nativity data in regard to the homemaker (usually the wife) were collected, but no information on the head of the family. 20 For 1950, the figures presented in this article were obtained from 146 Boston wage- and clerical- or sales-worker families of 2 or more persons. They were drawn from a random sample and no lower income was set for inclusion nor was any restriction imposed as to receipt of public assistance at any time during the survey year. A $10,000 maximum income limit was fixed for in clusion of wage- and clerical- or sales-workers. The average size in 1950 of wage-earner and clerical-worker families in Boston, 3.5 persons, was smaller than that in any of the 5 earlier surveys but was second largest among the 11 cities of 1,000,000 population or more surveyed in that year.2 (See table 6.) On the other hand, total 0 percentage distribution of outlays by two-or-m ore person w - and clerical-w age orker families surveyed in th Boston e area, 195 0 Item Boston’s rank among 11 large city areas 1 Amount Number of families covered________ Average family size (persons)______ 146 3.5 2 Money income before personal taxes Money income after personal taxes 2. Other receipts___________________ Total receipts (after taxes)________ $4,138 3,886 14 3,900 10 9 8 10 Average money receipts Average outlays Current outlays for goods and services (total)------------------------------------------------Food and drink_____________________ Alcoholic drinks_____________________ Clothing____________________________ Shelter (current expense)4___________ Fuel, light, refrigeration, and water___ Household operation_________________ Housefumishings and equipment_____ Automobile purchase and operation___ Other transportation_________________ Medical care________________________ Personal care________________________ Recreation__________________________ Reading____________________________ Education__________________________ Tobacco____________________________ Miscellaneous goods and services 3_____ Gifts and contributions__________________ Personal insurance premiums_____ _______ Net change in assets and liabilities6_______ Payments on principal of mortgages and downpayments on owned homes.. Balancing difference (average) 1__________ Amount Percent of total3 $4,301 1,352 66 470 548 229 165 259 367 97 203 101 203 44 15 106 76 121 169 -347 108 -344 100.0 31.4 1.5 10.9 12.7 5.3 3.8 6.0 8.5 2.3 4.7 2.3 4.7 1.0 .3 2.5 1.8 10 5 11 8 1 1 8 9 9 6 9 3 10 1 8 1 1 5 11 2 10 1 1 The 10 large city areas in addition to Boston are: Baltimore, Chicago, Cleveland, Los Angeles, New York, northern New Jersey area, PhiladelphiaCamden, Pittsburgh, San Franeisco-Oakland, and St. Louis. See BLS Bull. 1097, Revised, 1953. 2 After deduction of Federal and State income, poll, and -personal property taxes. 2 Because of rounding, percentages do not add to 100. 4 Rent, interest on mortgages, taxes on owned homes, and maintenance. 3 A great variety of items: funeral expenses, alimony, etc. 8 Personal insurance premiums and all outlays for durable consumer goods except dwellings are treated as current expenses and not included in the assets and liabilities. t Represents the average net difference between reported money receipts and reported money disbursements (i. e., sum of current outlays, gifts and contributions, and personal insurance premiums subtracted from sum of money receipts, after taxes, plus net decrease in assets and liabilities). It is a measure of the net reporting error and cannot be assigned to any one seg ment of the accounts. S ource: See text footnote 1. ter, or skills brought by first-generation immi grants in the fabrication of clothing or housefurnishings. Boston Wage and Clerical Workers, 1950 10 money receipts after personal taxes amounted for these families to $3,900 (compared with an average of $4,038 for the United States2 )— a 1 level exceeded in 9 of the other large cities, and surpassing only the money income in Baltimore. In this 1950 survey, the proportion of total expenditures allocated to “miscellaneous” was 35.6 percent, surpassing even the percentage out lay of 35.4 percent spent for food by Boston wageearner families. These same families had a hous ing cost which was only 12.7 percent of all pur chases. This low ratio compared to 1934-36, when it was 20.3 percent, is attributable to two factors: rent control and much higher real incomes. Inspection of the differences in the average amount of expenditure for major consumption commodities among the 11 cities reveals that Boston worker families were relatively low spend ers for most major categories, but purchased partly by necessity and partly by inclination a few significant items of consumption at relatively high rates compared to families in the other large cities. The average shelter cost for the Boston wage earner in 1950, for example, was higher than in the other 10 large cities. Similarly, the group which includes fuel, light, refrigeration, and water was one for which Boston families laid out more than in any other large city.2 Boston families ranked 2 first in spending both for tobacco products and for reading materials. For food consumption, at home and in restaurants, Boston wage-earner fam ilies spent close to the median among the Nation's large cities. In contrast to the relatively high to bacco expenditures in Boston, the annual workerfamily outlay for alcoholic beverages was less than in the other large metropolitan areas.2 In ex 3 penditures for clothing, Boston ranked eighth among the 11 cities. The relatively low average spending for automo bile transportation amounting to only $367 per worker family, was explained by the much higher rank (6th) for Boston in terms of spending for “other transportation,” compared to a rank of 9th among the 11 cities for auto transportation. Perhaps even more revealing than the amounts spent and the rank of Boston was the wide variety of items of which worker families made purchases in 1950 compared to the earlier years in which family expenditures had been studied. In com mon with worker families elsewhere in the Nation, Boston families bought television sets and musical instruments, television combination sets, mechani cal refrigerators, cooking stoves, and automatic washing machines in large quantities. The im proved plane of living in 1950 was manifest in the purchase of such services as laundry-sent-out, launderettes, and babysitting. Two hundred and three dollars per wage-earner family were spent for medical services and $46 per family for clothing services (that is, dry cleaning, shoe repairing, and like items). In the recrea tion group, Boston worker families made their largest single outlay for paid admissions to con certs and sporting events, and the next greatest for cameras and photographic supplies. All of these were the components of a system of living replete with commodities and services of the sundries group, many of which were unknown and even un dreamed of at the time of the previous studies. Conclusion The strands of advancement threaded their way through the Boston community, spinning and weaving a new fabric of living in a continuous proc ess over three-quarters of a century. Advancing technology made available new goods at reasonable prices and, at the same time, higher wages and shorter hours. Reform movements focused on education, slum clearance, and working conditions. Political action exercised by various groups, in cluding labor unions, obtained favorable social wel fare legislation. Trade unionism and collective bargaining grew and won higher wages, more lei sure, and improved conditions for workers. The efforts and accomplishments of many enlightened employers aided in improving working conditions and planes of living. The role of the factfinder in the social sciences brought to light the true condi tions of workers' families, providing a factual basis from which to initiate change and bring reform. These statistical explorations began with the Mas sachusetts Bureau of Statistics of Labor created in 1869 and the United States Bureau of Labor Statis tics founded in 1884. 21 For a detailed analysis in terms of the averages for the United States see Standards and Levels of Living of City-Worker Families, Monthly Labor Review, September 1956 (p. 1015). 22 Boston showed a relatively high proportion of rented units; however, the comparatively high expenditure for fuel was affected both by the climate and the fact that the rent included heat in only about a third of such units. 22 Although family expenditures for tobacco and alcohol are known to be underreported in surveys, it can be assumed that the survey results reflect intercity variations in expenditures for these items. N e w E n glan d’s economy has become less dependent on shoes and textiles as employment has risen in both nonmanufacturing and durable-goods manufacturing. H a n d E d w a r d T. O ’ D R e c e n t T r e n d s in E m P a t t e r n s p lo y m e n t onnell R e c o g n i t i o n and exploitation of New England’s natural resources and advantageous location for profitable manufacture came early. For instance, in 1637, Abraham Shaw was granted by the Great and General Court of Massachusetts the right to take ore and fuel from common lands for the purpose of manufacturing “iron barrs” ; 1 and in 1644, a large iron works was begun in Lynn. A year earlier, the town of Braintree had voted the setting aside of 3,000 acres for encouragement of an iron works,2 and nearly everywhere in the little coastal settlements, establishments were busily turning out bricks, pottery, hollowware, bar iron, scythes, shovels, axes, hammers, and nails, all articles essential to settlers in a new land. Thus, New England’s interest in manufacture and its traditional devotion to the production of light metalwares and consumers’ goods both began early and stemmed naturally from the nature of the readiest market. Near the beginning of the 19th century, the greatest regional industry was born with the building of a spinning frame on the English Arkwright model by Samuel Slater in Rhode Island. With this event, the economic history of New England was revolutionized, for the region possessed every gift necessary to the manufacture of textiles: Available waterpower, the proper degree of humidity for the best processing of yarn, an adequate labor supply, and excellent ports for the import of raw cotton and the export of finished product. In addition, impending political and historical developments were to guarantee markets for New England industries of a magnitude that had previously been unimagined. 421586—57-----3 is t o r ic a l Determinants of Markets for Manufactures Earliest of these great politico-economic events was the War of 1812 which cut the flow of English woven goods into this country and thus afforded an opportunity for New England merchants to seize the domestic market. Prior to 1812, New England had only 32 spinning mills. Between 1812 and 1815, 73 were constructed.3 Even more significant as part of the general regional pattern of industrial development, the first power looms in America were installed in 1813 by the Boston Manufacturing Co. of Waltham. The weaving of cloth and the spinning of thread under a single roof marked perhaps the beginning of the textile industry in America, as well as the factory system as we know it.4 New England’s position in the mid-20th century in the manufacture of precision machines and interchangeable parts owes much to the development over the years of mechanical skills by workers, and of technical knowledge by management and inventors, in connection with improving the productivity of textile machinery.6 O f course, other influences helped shape the region’s machinery and metalworking economy and account in part for interstate differences which persist to the present. Although none of the early iron or copper mines of Connecticut appear to have developed into m ajor operations, 1 Nathaniel Bradstreet Shurtliff, Records of the Governor and Company of Massachusetts, Boston, W. White, Printer to the Commonwealth, 1873, Vol. I (p. 206), Vol. II (pp. 61, 81, 103, 125). 2 Samuel A. Bates, The Ancient Iron Works at Braintree, Massachusetts, South Braintree, F. A. Bates, 1898 (p. 2). 3 C. J. Ware, The Early New England Cotton Textile Manufacture, Boston, Houghton, Mifflin Co., 1931 (p. 37). 4 Victor S. Clark, History of Manufactures in the United States, New York, McGraw-Hill Book Co., Inc., 1929, Vol. I (p. 450). «Ibid. (p. 516). (ii) 12 Chart 1. Industry Shifts in Manufacturing Employment, New England, 1939 to 1956 1 Percent Change + 100 + 80 settlement of the W ar of 1812, insured even more than earlier developments that New England would specialize in the mass production of com modities for the Nation's ever-increasing popula tion. America needed textiles, shoes, handtools, and weapons, and New England capitalized and prospered upon her early mechanization. Inevitable Decline in Relative Position + 60 + 40 +20 Textile-Mill Products Durable Goods -2 0 - Leather and Leather Products Nondurable Goods (except textile-mill products and leather and leather products) -4 0 URADST TRstatistTsE TO L B R BNEE O IAO DPA ic N F AO UITU FAE E RM BS Source: Bureau of Labor Statistics and Cooperating State Agencies i 1956 data are preliminary. the presence of the metals and the need of the colonists for hand tools and household wares led to the growth of a light manufacturing industry devoted to meeting these demands.6 Further impetus was imparted to Connecticut metal working by the intensive development of clock making. In the beginning, the clock movements were of wood, but early and continuing effort was made to substitute metal, and in 1837, an inexpensive brass clock was placed on the market by Chauncey Jerome of Plymouth, Conn. Its immediate success proved a boon to the brass mills of the Nutmeg State.7 At about the same time, light machines were devised which produced pins from wire and automatically stuck them on paper, an advance which secured to its inventors dominance of the burgeoning American market.8 From beginnings such as these, Connecticut de veloped its metallic industries which make it today a center of hard goods production. The unparalleled westward surge to settle inland America, beginning not long after the B u t the westward migration which provided the market also contained the seeds of future competition; each new ly developed section of the country built its own manufacturing establish ments which utilized closer sources of raw material and sold their goods to the new centers of popula tion. Perhaps the most obvious single factor in speeding the loss of N e w England's relative position was the universal adoption of steam as a prime source of industrial power and the con sequent loss of premium upon waterpower sites— probably N e w England's greatest locational advantage.9 As the fight to retain markets became fiercer and the region's competitive advantages decreased, New England management attitudes became less daring than those of the early innovators and were increasingly concerned with maintenance of exist ing positions.1 Beset by unflagging competition 0 from other sections of the country, New England over the years has been sorely pressed to maintain a share of markets sufficient to support full employment in its factories. That it has not been uniformly successful in all aspects of this struggle has engendered a measure of pessimism over the region's future as a manufacturing center.1 Some of this doubt may be justified, 1 but, in major outline, the record contains more favorable than gloomy implications. An examina tion of the course of New England's economic fortunes since 1939, as revealed by the ebb and flow of employment, indicates much to allay the fears that the region has become static and is concerned principally with fighting holding actions. «William G. Lathrop, The Brass Industry in the United States, revised edition, Mt. Carmel, Conn., William G. Lathrop, 1926 (p. 22). 1William G. Lathrop, op. cit. (p. 34). s Ibid. (p. 62). 8 Thomas Russell Smith, The Cotton Textile Industry of Fall River, Massachusetts, New York, King’s Crown Press, 1944 (pp. 41-44). 1 The Federal Reserve Bank of Boston, Annual Report for 1955 (p. 6). 0 n Seymour E. Harris, New England's Decline in the American Economy. (In Harvard Business Review, Cambridge, Spring 1947, pp. 348-371.) 13 Factory Employment Patterns Since 1939 Between 1939 and 1956, nonagricultural em ployment in New England increased by more than 1 million jobs, or 40 percent, as shown in the following tabulation: job totals in practically all of the other N e w England m ajor manufacturing industry groups have increased in keeping with the nationwide pattern of advance: Monthly average employment Nondurable goodsy exclusive of textilemil! products and leather and leather Durable goods products (thousands) (thousands) Monthly average nonagricultural employment (thousands) 1 9 3 9 _________ __ _ 2, 582. 4 1 9 4 3 _________ — . 3 , 3 8 0 .7 1 9 4 9 _________ ... 3, 201. 3 1 9 5 3 _________ .. 3, 563. 8 1955 _ _ _ 3, 513. 4 _ _ _ 3 ,6 0 8 .3 i Preliminary. Soubce: Bureau of Labor Statistics and cooperating State agencies. Analysis of these employment trends reveals elements of both strength and weakness since certain of the region’s oldest and largest manu facturing industries have not, over this span of years, shared in the general employment gains. The most dramatic and widely publicized of these unfavorable developments is the deep decline in employment suffered by the region’s textile industry (chart 1). Since 1939, when it was the major source of jobs for factory operatives, employment in the New England textile industry decreased by 108,900 jobs, or 39.5 percent. Moreover, between 1939 and 1956, the number of workers in the shoe and leather industry, second only to the textile industry in 1939 as a source of manufacturing employment, remained about stable,1 as shown in the following tabulation: 2 Monthly average employment Leather and Textile-mill leather products products (thousands) (thousands) 1 9 3 9 ___________________________________ 1 9 4 3 ___________________________________ 1 9 4 9 ___________________________________ 1 9 5 3 ___________________________________ 275. 296. 252. 214. 3 5 2 7 113. 9 101. 8 114. 4 114. 3 1955 _________________________________ 173. 0 114. 9 1956 1_________________________________ 166. 4 111. 9 1 Preliminary. Soubce: Bureau of Labor Statistics and cooperating State agencies. On the other hand, offsetting the employment record of textiles and shoes and leather products, 1 New England’s record is better when measured by production rather 2 than by employment. Its relative share of national output has been well maintained and of recent years has increased modestly. For a discussion of this point, see p. 310 of this issue. 1 Chris A. Theodore, New England Economic Indicators, Boston Univer* 3 sity, College of Business Administration, Bureau of Business Research, 1955 (section on Manufactures). 391. 8 387. 2 967. 3 406. 3 1 9 4 9 ________________ _____________ 585. 5 423. 8 1 95 3 ________________ _____________ 791. 3 463. 9 1 95 5________________ _____________ 7 1 9 .4 460. 5 1956 1______________ _____________ _______ 1956 1_______ 1 93 9 ________________ _____________ 1 94 3 ________________ _____________ 7 5 7 .8 469. 5 1 Preliminary. S oubce: Bureau of Labor Statistics and cooperating State agencies. One effect of the divergence of trends between textiles and shoes and leather, on one hand, and all other manufacturing, on the other, has been a shift of the balance in factory employment away from the historical heavy reliance upon non durable goods toward an even division between nondurable and durable goods in 1956. (See chart 2.) Nondurable-goods employment ac counted for 66.5 percent of New England man ufacturing employment in 1939, for 57.4 in 1949, and for only 49.7 percent in 1956. New England’s improving balance between hard and soft goods is not the result of merely subtract ing textile employment from an otherwise static manufacturing economy. Durable-goods employ ment has had an impressive growth in absolute terms which compares respectably with rates of growth in other sections of the country. Some of the oldest and most widely disseminated production statistics which treat with New England manufacturing industries are concerned with textiles and shoes and leather.1 Their 3 widespread use in the past has tended to focus attention upon the vicissitudes of those two industries which have failed to keep pace with the employment expansion of the rest of the region’s manufacturing industries. This emphasis has helped nurture the opinion that New England’s productive efforts are somehow overconcentrated in depressed nondurables. In fact, New Eng land’s soft-goods industries, apart from textiles and shoes and leather, have experienced a siz able employment gain of 21.3 percent since 1939. 14 Chart 2. Durable and Nondurable Goods Employ m as a Percent of Manufacturing Employment ent in New England, 1939 and 1956 1 ranking by the degree of concentration of manu facturing employment in each State's three largest manufacturing industry groups.1 Massachusetts 4 and Connecticut, with concentrations of 32.1 and 45.2 percent, were below the median of 46.4 percent. In the remaining New England States, employment in the 3 largest industry groups ranged from 50.7 to 57.0 percent of total manufacturing employment. Comparable figures for other repre sentative States were: New York, 35.6 percent; Virginia, 40.6; Ohio, 43.8; California, 45.2; Georgia, 56.6; North Carolina, 66.7; and South Carolina, 78.0. Trends in Nonmanufacturing Employment 1 1956 data are preliminary. Diversified Base of Manufactures. In comparison with other States and regions, New England's manufacturing employment, whether in durables or nondurables, is not presently unduly concen trated in any small group of industries, but rests upon a broad base of well-diversified manufactures most of which are directly tied in with the national level of industrial activity. It remains undeniable that in the past a heavy concentration of employ ment in the textile industry worked to New England's disadvantage. Because of this expe rience, New Englanders currently display a strong inclination to spread employment among a broader list of industries. Not only is the regional factory economy today less vulnerable to employment declines stemming from the ills of a single industry, it is far better diversified than the economies of some competitive areas which have been the heaviest gainers from New England's loss of textile preeminence. None of the New England States was among the top 25 percent of the States in a Because major extractive industries are but lightly represented in New England, and because of the early and intensive development of manu factures, the percentage of the region's work force in nonmanufacturing employment is lower than in the United States as a whole. In 1939, for example, 54.8 percent of New England's nonagricultural workers were concerned with nonmanu facturing activities. At the same time, the na tional percentage was 66.8 percent. In 1956, how ever, the national percentage remained almost un changed at 67.2, while New England's participa tion in nonmanufacturing employment advanced to 58.2 percent (chart 3). Since 1939, the ad vances in major categories of nonmanufacturing employment were steady and impressive (table 1). T able 1.—Average m onthly em ploym ent in principal non m anufacturing industries, New England, 1 9 and 1956 1 93 Industry Employment (in thoiisands) 1939 Total__________________________________ 1,414.1 Construction___________________________ 84.3 172.4 Transportation and public utilities_______ 506.7 Wholesale and retail trade_______________ Finance, insurance, and real estate................ 100.7 255.3 Service and miscellaneous________________ Government (Federal, State, and local)___ 294.7 1956» Percent change from 1939 2,102.9 177.2 220.1 704.4 169.0 410.9 421.3 48.7 110.2 27.7 39.0 67.8 60.9 43.0 i Preliminary. Source: Bureau of Labor Statistics and cooperating State agencies. u Based upon employment data obtained from reports by State agencies cooperating in the Federal-State Current Employment Statistics Program. Excluded from this comparison were Delaware, Idaho, Kentucky, Nebraska, Nevada, New Mexico, North Dakota, and Wyoming, since published data for these States were not available in form to permit isolation of the 3 largest Standard Industrial Classification 2-digit industry groups. 15 Whether it is desirable for New England to ex perience a decrease in the share of manufacturing employment is a matter over which distinguished experts disagree. Some hold that such a develop ment, if of considerable magnitude, may be the result of substitution of low-paid service employ ment for well-paid factory jobs and should not be viewed with equanimity.1 Other experts believe 5 that the tertiary industries assume rising impor tance in an advancing industrial economy and offer hope for overcoming some of the adverse effects of New England’s dependence on manu facturing.1 Whatever the interpretation, cer 6 tainly the absolute increase in nonmanufacturing employment has provided many New England workers with jobs; and if the second of the two opinions holds true, the region’s great wealth of educational, medical, financial, research, and re creational facilities probably will provide signifi cantly greater employment in the future. The continued exploitation of these industries should be a keystone of State and regional development policy. T a b l e 2 . —Employment in manufacturing and nonmanu facturing industries in New England S tes, 1 ta 939 and 1 5 96 Manufacturing employees State N onmanufacturing employees Number (in thousands) Number (in thousands) 1939 Per cent change from 1956 1 1939 1939 433.8 108.4 710.6 82.7 131.5 38.6 278.0 461.2 117.0 167.6 781.6 1,133.9 76.4 99.7 113.6 165.9 47.5 66.4 Connecticut. _ . . . __ 281.2 Maine____ ... 94.6 Massachusetts._ _ _ 568.8 New Hampshire____ 68.6 Rhode Island.__ ___ 127.8 Vermont ____________ 27.3 54.3 14.6 24.9 20.5 2.9 41.4 Per cent change from 19561 1939 65.9 43.2 45.1 30.5 46.0 39.8 i Preliminary. S ource: Bureau of Labor Statistics and cooperating State agencies. as the underlying reasons, differed from State to State. In general, the States fall roughly into three categories with respect to changes in manu facturing employment. Thus, Rhode Island in creased factory jobs only slightly over the period, while moderate gains were scored by Maine, New Hampshire, and Massachusetts. Vermont in creased its manufacturing workers by 41.4 percent, and Connecticut’s 54.3-percent employment rise put the Nutmeg State far in the van in the matter Intrastate Employment Trends of increased factory employment, as shown in table 2. To a greater or lesser extent, employment trends Most dramatic among the manufacturing em within the individual New England States be tween 1939 and 1956 have reflected overall ployment advances were those of the electricalequipment industry, particularly the light assem regional changes. Each State has experienced bly operations comprising the communicationsincreases in the relative importance of nonmanu equipment category, and transportation equip facturing employment and in the absolute number ment with especial emphasis upon aircraft engines of jobs in both manufacturing and nonmanufac in Connecticut. Rhode Island did not increase turing. The employment record of the textile employment in any single industry sufficiently to industry has been uniformly unfavorable in the offset the textile industry decline, although the 6 States, and an almost sidewise trend of shoe and growth of employment in costume jewelry pro leather employment has occurred in 2 of the 3 vided a bright spot. New Hampshire and Massa States where this industry is a major factor. chusetts, on the other hand, by increasing employ Only Maine had a notable increase in the number ment in their electrical-equipment industries, were of shoe and leather operatives, and some evidence exists that Maine’s gains were at the expense of able to cushion somewhat the impact of textile her New England neighbors. job declines. Vermont’s gains were for the most Despite the employment trends in textiles and part due to a sizable employment increase in the production of metalworking machinery. No new shoe and leather products, every State in the region boosted its manufacturing job total be industry of major size developed in Maine over tween 1939 and 1956. The rates of gain, as well this span of years, but the gain in shoes and leather products served to compensate in some 15 Committee of New England of the National Planning Association, The degree for the State’s losses in textiles. Connecti People of New England and Their Employment, Monograph No. 7, Boston, cut during this period has been New England’s New England Council, 1954 (p. 290). See also William H. Miernyk, Labor Mobility and Regional Growth. (In Economic Geography, Clark Univer prize example of the effect upon employment of a sity, Worcester, Vol. 31, October 1955, pp. 321-322.) manufacturing boom. Of the enormous job gain i« Seymour E. Harris, op. cit. (p. 352). 16 Chart 3 Manufacturing and Nonmanufacturing Em . ployment i New England, 1939 and 19561 n ance and finance industries, long N e w England strong points, have become even greater providers of employment in several of the States, notably Connecticut, Massachusetts, and Vermont. Dur ing the postwar period, government employment, particularly State and local, mounted in volume with the increased number of schools and the additional police and other civic services required by the great shifts in population and growth of suburban areas since the close of World War II. A combination of these factors of industrial boom, construction activity, and population shifts has contributed to the expansion of job opportunities in transportation and public u i i i s In five tlte. States, as well as in N e w England as a region, non manufacturing industries today account for a greater relative share of total nonfarm employment than in 1939, as seen in the following tabulation: Nonmanufacturing employment as a percent of total nonagricultural employment 1939 C onnecticut. M aine____ __ . _ Massachusetts New H a m p sh ire ____ R hode Island Vermont __ _ 19561 4 9 .7 5 5 .3 5 7 .9 5 2 .7 47.1 63 .5 51. 60. 61. 54. 55. 63. 5 8 5 7 8 2 1 Preliminary. S o u r c e : Bureau of Labor Statistics and oooperating State agencies. in the Nutmeg State, much was due to the extraor dinary volume of production of aircraft engines and parts. This has tended, of course, to stimu late activity in allied metalworking and machinery, the overall effect being to establish Connecticut at this point of cyclical expansion not only as the leader among N e w England States, but as one of the most dynamic in the Nation in terms of employment r s . ie The employment situation of nonmanufacturing industries was more uniformly favorable among the States. The gains have been impressive both in relative and absolute terms. Each State has par ticipated in the residential, government, indus t i l and highway phases of the nationwide build ra, ing boom, and, consequently, construction employ ment has risen extensively everywhere. Aggres sive promotional drives have aided each State in developing i s recreation industry, with a t resulting stimulus to employment in service activi ties and retail trade. Buoyed by a high level of national income and f l employment, the insur ul Conclusions Several broad conclusions are supported by a review of the historical development of manu facturing in N e w England and an examination of the regional and State patterns of employment changes since 1939. The early development of manufacturing and the tendency to emphasize the production of con sumers’ goods and light, complex machine parts were natural results of geographical and historical forces. The degree of regional economic homogeneity i sometimes overstressed. Despite similarities, s there are important and age-old differences in the economic structures of the several States. Emphasis upon the manufacture of nondurable goods as a principal source of employment has lessened. The two factors which contributed most to this changing balance are the growth in the production of durable goods, particularly since 1939, and the long-term decline in textiles. 17 Employment trends in the manufacture of non durable goods, apart from textiles and, to a lesser extent, shoes and leather products, have been strong. Realistic analysis of the region’ economy s calls for consideration of the textile industry apart from other manufacturing in order to avoid dis tortion of non textile trends. The nonmanufacturing industries of N e w Eng land are growing impressively in absolute numbers of workers and are gaining in relative importance as sources of employment. There i l t l to suggest that N e w England could s ite prosper in the absence of national prosperity. Muc h of the region’ manufacture i consumed or s s incorporated into end products beyond i s borders. t Similarly, a large part of N e w England’ non s manufacturing employment advance stems from high levels of national income which have stimu lated expenditures in recreation, finance, educa tion, research, medical, and kindred services offered to the Nation. R y the same token, apart from the textile situation, there i l t l to suggest s ite that regional industries are worse off than their national counterparts. Since the rising tide l f s it a l boats, the economic fortunes of the N e w l England region, and consequently the level of i s t employment, will rise or f l with those of the al country as a whole. The British commander in the American Revolution] managed well, but not quite well enough. It i difficult to keep military secrets in the midst s of an attentive people, and by the people themselves the discovery was made. Paul Revere had some thirty mechanics organized to watch and report the movements of the British, and these men now became convinced that an expedition was on foot, and one of a serious character. The movement of troops and boats told the story to watchers, with keen eyes and ears, who believed that their rights were in pe i . They were soon satisfied that the rl expedition was intended for Lexington and Concord, to seize the leaders and the stores; and acting promptly on this belief they gave notice to their chiefs in Boston and determined to thwart the enemy’ plans by warning and rousing s the country. — Henry C abot Lodge, The Story of the Revolution, New Y ork, Charles Scribner’s Sons, 1903 (pp. 31-32). Labor-Management Relations Labor and m anagem in New England are faced ent with problems arising from econom pressures ic and the transition to m ore diversified econom . y A. H ow ard M The outstanding factor i negative— the lack s of any uniform trend of business or industrial relations. There has been a transition from an important textile industry to increasingly mixed industrial activity. While total manufacturing employment in this region f l 9 percent from el 1947 to 1955, a decline of 129,000 jobs in postwar textile manufacturing accounted for over 90 percent of the net decline of 141,000 manufac turing jobs.1 Other major industries in which employment had fallen are machinery manufacturing (except electrical) and fabricated metal products, which accounted, respectively, for 18 percent and 13 percent fewer jobs in 1955 than in 1947. In an other major manufacturing activity, leather and leather products, no significant change occurred in total employment. The other manufacturing industry employing over 100,000 workers, elec trical equipment, provided 11 percent more e m ployment over the 8-year period, while appreciable gains also occurred in transportation equipment and in apparel manufacturing. A substantial drop in N e w England’ manu s facturing employment as a proportion of total nonagricultural employment contrasts with the relatively stable national situation in recent years. Also, the increasing volume of service industry jobs, particularly in Massachusetts and Rhode Island, and of white-collar employment in trade and finance has not kept pace with national trends.2 The degree of unionization of white- yers i k e i t s e c o n o m i c a c t i v i t y , N e w England’ in s dustrial relations cannot be easily distinguished from the national pattern. Interregional stand ards, centralized authority, and nationwide policy making have influenced both labor and manage ment organizations. Uniform Federal legislation also has affected local labor conditions and rela tionships, making the distinctive elements stand out less clearly with the passing of time since i s t introduction. Some distinguishable features con tinue nonetheless. Anything peculiar to the N e w England scene will be a reflection of the people and their economic activity. The conservatism and respect for the past that i generally characteristic of the local s population has found expression in their social and economic conduct, with l t l inclination for ite innovation or rapid change and less dynamic drive than in some other areas of the Nation. L Industrial Transition and Labor Relations Manufacturing activity of the region developed early in the Nation’ history and generally was s limited to a few industries. In recent years, how ever, the economic pattern has been moving away from industrial homogeneity. Unlike the prewar dominance of textile manufacturing, no single major industry and no predominant labor organi zation stands out conspicuously in any of the six States. To describe the developing trends and characteristics of labor relations, i will be wise t to note the diverse directions in which business and employment have been moving. 1 William H. Miernyk, Unemployment in New England Textile Com munities, Monthly Labor Review, June 1955 (p. 645). 2 Seymour L. Wolfbein, Changing Patterns of Industrial Employment 1919-55, Monthly Labor Review, March 1956 (p. 250). (1 8 ) 19 collar employees has not been as great as that of workers in the manufacturing and other industries employing manual workers. M a n y of these employment changes resulted in large part from labor relations and labor cost d f i u t e , and in turn had a serious impact on ifclis the local problems of unions and management. Industry, labor, and public o f c a s in many fiil urban communities have been faced with e m ployment shifts and changes in job s i l that kls were caused by the liquidation of the older plants. With many of the displaced workers from the nonexpanding industries in the older age groups, serious problems of adjustment have been posed for management and labor representatives in many local areas. Shifts in production and em ployment to diverse industrial activities have occurred in or around c t i ies such as Brockton, Lynn, and Worcester in Massachusetts and Nashua and Manchester in N e w Hampshire. Textile centers such as Fall River, N e w Bedford, Salem, Lowell, and Lawrence in Massachusetts; Woonsocket and Providence in Rhode Island; and Sanford and Waterville in Maine have be come the locations for garment, electronic, m a chinery, or plastics plants. Labor relations have become unstable because of periods of unemploy ment pending shifts to new employment, and because the new plants often prefer to employ younger people. Extent of Unionization The organization of N e w England's shoe workers, leather workers, and textile workers pre dated the unionization of mass-production indus try, and although collective bargaining has a long history in the region, recent unemployment, job shifts, and the developing trend from factory to more white-collar employment seem to have slowed down the growth of unionization. It i s difficult to give accurate estimates of trends in recent years since no continuing figures are avail able on labor union membership by State. The National Planning Association estimated that in * Report on the Economic State of New England, National P l an n in g Association, published by New England Council, 1954 (p. 370). * In the writer’s judgment, a fair index of recent local trends, with the pos sible exception of Connecticut, is the Commonwealth of Massachusetts, Department of Labor and Industries estimates. Total union membership in the State as reported in its Annual Directory of Labor Organizations, was as follows: 1951, 598,000; 1953, 614,000; 1954, 589,000; 1955, 565,000, 421586—57----- 4 1951 union membership included 29.3 percent of the Nation's nonagricultural labor force, with a N e w England regional membership of 29.6 per cent. The high figure for the 6 States was 33.2 percent for Massachusetts, while the low was 22.7 percent for Connecticut.3 There i some later s evidence that unionization in N e w England m a y be lagging, i not declining absolutely, in net f growth as a result of increasing white-collar employment and transitional unemployment.4 Normally, union activity will be of small interest to those out of work and usually will take some time to develop among those employed in a new plant. Competing unions have been active in some of the major N e w England manufacturing industries for many years, with keen rivalry between unions formerly affiliated with the American Federation of Labor and with the Congress of Industrial Organi zations, respectively, as well as between these and independent unions. The textile, leather tanning, shoe, and electrical equipment industries have been subject to this competitive unionism. Although the AFL- C I O unification m a y eventu ally reduce rivalry among affiliated unions, the region's independent unions will probably con tinue their dual union campaigning. The United Mine Workers, District 50, the International Longshoremen's Association, and the United Electrical, Radio and Machine Workers of America each represents N e w England employees exclu sively in some industry or shares representation in others in conjunction with A F L-CIO unions. It i also pertinent to note the extent of local s independent union bargaining of long standing. In the shoe manufacturing centers in and around Brockton and Marlborough, Mass., Nashua and Manchester, N. H., and in Lewiston and Auburn, Maine, multiplant unaffiliated shoe workers' unions compete with the national organizations. Another multicompany local organization of primarily textile workers bargains with manage ment in Woonsocket, R. I , plants. In addition, . some employees in the electric power industry have independent representation, local or national. Factors Shaping Management Policy The major industrial relations problems of the region have been caused by economic factors rather than by poor personnel practices or anti- 20 labor attitudes.5 The highly competitive markets in which N e w England consumers’ goods manu facturers often s l have usually been affected by el low-cost, nonunion competition, either domestic or foreign. In bargaining and handling of griev ances over work assignments and piece rates, management has frequently been under severe economic pressure. In a few industries, employers bargain collec tively on a multiplant basis through employer associations. In some l ocalities, this type of or ganization has helped in getting union leaders to consider management’ problems and needs at s the same time that wages, hours, and working conditions are negotiated. Such employer labor relations associations bargain in building construc tion, printing and publishing, trucking operations, shoe manufacturing, leather tanning, worsted tex t l manufacturing, and the fishing industry. The ie formation of these multiemployer groups has been directed toward a better balance of bargaining power, and toward joint efforts at getting the union to consider the competitive problems of companies with limited economic capacity. In the cotton-textile industry of Maine and Massachusetts, multicompany bargaining disap peared after the liquidation of the majority of those mills that were operating on that basis. The remaining companies negotiate on a single company basis, usually with one agreement for the unionized plants of the employer both inside and outside of the region. Major manufacturing agreements, covering at least 1,000 workers each, were estimated in Janu ary 1956 to number 139 in the 6-State area, with a total coverage of 369,000 employees.6 Those industry groups in which larger bargaining units occurred most frequently were textile-mill prod ucts, 17 agreements; paper and allied products, 7; leather and leather products, 8; primary metals, 6; fabricated metal products, 8; machinery (except electrical), 21; electrical machinery, 9; transpor tation equipment, 8; and construction, 15. A few of the larger N e w England plants have their terms of employment determined largely by centralized bargaining at locations outside of the region. In such situations, national patterns apply to N e w England operations. Industries in which this type of bargaining occurs include food prod ucts, automobile assembly, and rubber in eastern Massachusetts; chemical and electrical equipment in western and eastern Massachusetts; and ship yards and steel wire fabrication in Connecticut and Massachusetts. A number of smaller and some large manufactur ing plants remain unorganized, even in urban manufacturing centers like Boston and Worces tr e . Moreover, many of the large employers in the finance and distribution industries continue to administer personnel policy and personnel rela tions without union participation. Except for organization of the industrial insurance agents in some N e w England c t e , the insurance company iis employees are not generally unionized. Bargaining and Economics The shifts in industrial activity and employment have been influenced primarily by cost considera tions. In this regard, the employees have fre quently been on the defensive, and their unions have often offered arguments based more on mor ality than on economics. Justice and efficiency unfortunately do not always coincide. Efforts to move from a plane of conflict to one of more cooperative bargaining and better oper ating results have been usually motivated by the need for survival. The liquidation or the exodus of textile mills, of shoe factories, and of leather tan neries has often been the cumulative result of in dustrial relations d f i u t e , coupled with other ifclis economic factors. Some of the difficulties of collective bargaining are reflected by the record of strike activity. With about 7 percent of the Nation’ nonagricultural s workers, N e w England accounted for 2.5 percent of a l workers involved and 8.5 percent of the manl days of idleness caused by work stoppages during 1955. A lengthy textile strike resulted in the larger figure for man-days l s . ot The statistics of prior years give evidence of less time lost through stoppages here than might be expected. N e w England’ percentage of total s strike idleness has exceeded i s present share of the t Nation’ nonfarm employees in only 2 years s from 1935 to 1954, namely, 1942 and 1951. (See table.) These years were more comparable to the * Recent reports of the National Labor Relations Board show that unfair labor practice charges against employers in New England run from 5 to 6 percent of national totals. By comparison, New England accounted for about 7 percent of total nonagricultural employment in 1955. • See Characteristics of Major Union Contracts, Monthly Labor Review, July 1956 (p. 808). 21 late 1920’ and early 1930’, when organizing as s s well as economic causes accounted for an excep tionally high regional share of total time los . t The principal cause of stoppages in the region, wage issues in the textile and shoe industries, has diminished in importance in recent years, not withstanding the 1955 textile strike, through bet ter economic understanding in those situations where negotiations continue. A number of situations could be cited in which the top management of smaller companies in the textile, metal products, and paper products in dustries have been able to direct the plant’ labor s relations into more cooperative efforts. In these situations, help from both the union representa tives and the employees have lowered labor costs and increased employee earnings. Group incentive systems which are successfully operating in some N e w England plants 7 are examples of such co operative efforts. Flexibly higher machine assign ments, varying according to product requirements, have been worked out in some textile cases to the mutual advantage of the company, the employees, and the union. There are woolen mills operating profitably in Vermont and in N e w Hampshire, which were threatening liquidation a few years ago. Regularly scheduled labor-management meet ings for discussion of whatever problems may be bothering workers or management have replaced grievance procedures in many plants. Cooperative attitudes have replaced aggressive conflict in local paper, textile, and metal products mills which the writer has had the opportunity to observe at f r t is hand. While these programs improve the adminis tration of bargaining relations, of course, they do not eliminate a l disputes over wage adjustments. l Private arbitration of contract terms i not s uncommon in N e w England, particularly in the needle trades and the leather and textile industries. A no-wage-increase award in the 1949 arbitration between the Fall River Textile Manufacturers Association, the N e w Bedford Cotton Manufac turers Association, and the Textile Workers Union of America was followed by a number of subsequent cotton and rayon arbitrations, some allowing wage reductions and some denying increases. 1 Two such cases are reported in the National Planning Association study, Causes of Industrial Peace, New York, Harper & Brothers, 1955 (Chs. 16 and 17, entitled “The Lapointe Machine Tool Co. and the Steelworkers (CIO)” and “American Velvet Co. and the Textile Workers (CIO),” respec tively, pp. 257-295). W ork stoppages in New E ngland , 1927-5S Stoppages beginning Man-days idle during year in the year (all stoppages) Year 1927.................................. 1928_________________ 1929......... ....................... 1930.............- .......... . 1931........... ..................... 1932................................. 1933.................................. 1934................................. 1935.................................. 1936................................ 1937_________ ________ 1938................................. 1939.................. ................ 1940....... .......................... 1941_____ ___________ 1942_________ ________ 1943_________________ 1944_______ ____ _____ 1945__________________ 1946_______________ 1947_________________ 1948_________________ 1949_________________ 1950_________________ 1951_________________ 1952_________________ 1953_________________ 1954_________________ 1955________________ _ Workers Number involved 126 119 120 77 106 111 308 201 196 198 497 206 193 170 340 246 244 322 391 449 312 241 213 350 302 311 339 251 292 21,360 53,350 31,810 8,360 56,320 15,960 149,070 222,010 48,310 51,450 111,390 30,750 57,680 34,010 110,180 109,300 81,980 110,840 143,020 200,240 88,500 59,100 47,600 81,900 120,900 74,310 95,350 55,750 125,640 Number 496,470 4,106,270 1,060,700 107,300 1,310,390 223,580 2,272,620 2,488,800 967,900 769,410 1,409,180 403,800 589,880 360,040 966,300 534,100 378,430 633,230 1,869,100 6,837,900 1,757, 600 1,429,300 1,000,200 995,800 2,404,800 2,097,400 1,383,400 943, 600 2,390,600 Percent of United States total 1.9 32.6 19.8 3.2 19.0 2.1 13.4 12.7 6.2 5.5 5.0 4.4 3.3 5.4 4.2 12.8 2.8 7.3 4.9 5.9 5.1 4.2 2.0 2.6 10.5 3.5 4.9 4.2 8.5 S o u r c e : U . S. Department of Labor, Bureau of Labor Statistics, New England Regional Office. Arbitrations have also been used to adjust costs to a more competitive basis by increasing work standards. Higher spindle and loom assignments frequently have been the subject matter of arbi trations, and these awards influenced other similar situations. Arbitration has had educational re sults leading to more accommodating attitudes in bargaining subsequently on similar problems. Although, in at least 1 woolen mill arbitration in N e w Hampshire and in 1 cotton-rayon mill in Massachusetts, weavers refused to undertake big increases in loom assignments and s i l refused tl after the proposals by management were allowed by arbitrators on the basis of time studies and engineering data, in most recent arbitrations the awards have been accepted promptly without serious resistances. In the past 6 months, the writer has participated in textile workload dis putes in Maine and Massachusetts where weavers who objected to the management proposals finally accepted the arbitrator’ award sustaining m a n s agement’ position. A substantial number of dis s putes over incentive rates have also been resolved in textile mills, shoe factories, garment, and metal products plants by arbitration of time-study data or production-standard proposals. in many situations, the union of i i l are in fcas clined to prefer that such disputes go to arbitra tion because of difficulty in getting the affected members to accept management's demands. Al though not finding proposals inherently unreason able, the union representatives m a y find i im t possible to obtain assent. In such situations, the employer often initiates arbitration, or the union does so after a tr a period. il Public and Neutral Influences Labor legislation and local government policies influence management, labor, and industrial rela tions practices. In this respect, the three southern N e w England States have played an affirmative part. Each has enacted statutes covering insur ance, factory legislation, and minimum wages for both men and women, a l of which affect payroll l taxes and costs. Each also has anti-injunction and fair employment practices laws.8 Massachusetts, Rhode Island, and Connecticut each has a labor relations act applicable to e m ployees not subject to the Taft-Hartley law. N o statutory restrictions on union security agreements exist in N e w England.9 State mediation and arbitration boards have been provided for by legislation in five States, Vermont being the sole exception. Massachusetts established the f r t such permanent board in the is Nation in 1886. Connecticut also has a con tinuing tripartite organization with authority to intervene through mediation and to arbitrate differences when the disputing parties are willing to accept such services. The Massachusetts board also has the statutory authority to investigate any important disputes on i s own initiative and to publish a report when t cooperation of the parties i not forthcoming. In s addition, the legislature in 1947 enacted a b l il authorizing the Governor to take several optional steps to prevent stoppages in industries furnish ing essential services.1 0 Management Training Collective bargaining and personnel work have developed to a professional level with emphasis on the job of management to handle labor rela tions effectively. Management training and labor relations programs, courses, and conferences, offered in many local universities, make an im portant contribution to labor-management rela tions in N e w England and in the entire country. The availability of N e w England's outstanding labor economists has been an important influence on the evolution of mature attitudes within the area as well as beyond i s borders. t While not confined to N e w England, the research and published materials in the labor relations and personnel fie d by those connected with the educa l tional institutions of N e w England have had an impact on local thinking by reason of more direct contact and of the local publicity given to their ideas. With the constant efforts at improving manage ment performance, particularly in the direction of handling group relations and individuals affected by social situations, N e w England employers have been turning to the schools for trained personnel. M a n y companies not located here send their execu tives to N e w England universities for professional training or recruit management talent from stu dents in the graduate or technical programs of N e w England schools. Union Leadership The competitive situation of N e w England pro ducers presents problems for labor as well as for management. M a n y marginal situations exist, and continued employment opportunities often depend on lower labor costs. Therefore, bargain ing has often required union members to make some difficult decisions. Labor representatives in many localities have learned from many harsh experiences their importance in influencing the decisions of union workers as well as in influencing management. The impact of bargaining decisions on the in dustrial activity of a community can be serious 812 States have enacted legislation on fair employment practices. 8 When the Federal act was revised in 1947, New Hampshire adopted legislation that made necessary the approval of two-thirds of the affected employees before a union membership agreement could be legally executed; it was repealed 2 years later. As of 1954, an analysis of major agreements by the Bureau of Labor Sta tistics showed that 55 percent of the New England contracts provided for a union shop, 22 percent for maintenance of membership, 84 percent for dues checkoff, and 23 percent gave the union sole bargaining rights. (See Union Security Provisions in Agreements, 1954, Monthly Labor Review, June 1955, p. 654.) 10 Specifically food, fuel, water, electricity, gas, hospital, and medical facilities are covered; the law, generally acceptable to all groups, is popu larly known as the Slichter act after Professor Sumner Slichter, of Harvard University, who was chairman of the recommending committee. (See Oh. 596 of the 1948 enactments.) 23 where competition precludes the passing on to consumers of higher costs. Management believes that one cause of N e w England’ labor relations s problems i the existence of too great a degree of s union democracy. The main management c i i rt cism leveled at the union leaders comes from their failure to overcome membership resistance to needed changes, or membership insistence on non competitive wage levels. Educational programs have been undertaken by many of the N e w England universities in conjunc tion with union and management advisory groups. Most courses are directed toward the technical training of leaders, however, with l t l attention ite to business economics. The Massachusetts Federation of Labor has introduced into the secondary schools labor essay contests for student scholarships; i also provides t scholarships for assisting outstanding labor repre sentatives to attend the Harvard Trade Union Fellowship Program, which i the only f l s ul semester residence program tailored solely for labor leaders and conducted on the university campus. AFL-CIO unions formerly affiliated with the Con gress of Industrial Organizations and some of N e w England’ independent unions also sponsor con s ferences and support courses in conjunction with universities in the six N e w England States, as well as educational programs in their union halls with assistance from university teachers. The writer has participated in meetings directed to arbitra tion, legislation, and collective bargaining on wages, and helped plan a number of these under takings in Massachusetts. To draw upon the experience and competence of labor o f c a s local and national, can be ex fiil, tremely helpful to management in meeting the economic impact of industrial relations. As union o f c a s can be an obstacle or an aid in the process fiil of negotiating and administering agreements, they can be helpful to management in getting employee cooperation, or they can be an adverse factor. In the judgment of the writer, management in N e w England has not done well in educating the union leaders as to management problems. Where the product i sold in a highly competitive market, s improvement in understanding most often came only after harsh experience from a critical situ ation; sometimes this education has been useful only in other situations where the c i i m a y not rss have developed to a fatal stage. Conclusion N e w England, the oldest industrial section of the Nation, has been experiencing a substantial transition in labor relations and in economic ac tivity. The capacity of management and of labor leaders has been severely tested in seeking to work out accommodations to the rapid economic changes. Inflexible attitudes have in some cases aggravated the impersonal economic forces underlying the dif f c l i s Labor unions and labor leaders today iute. play significant roles along with industry’ execu s tives in determining the capacity of industry to meet the competition, and in influencing the job opportunities in N e w England communities. Situ ations in which poor labor-management relations have contributed to the liquidation or removal of plants are not uncommon, but costs, productive efficiency, and job security have been improved by mutual efforts in many other cases. Generally improved labor relations and employ ment opportunities must come from more vision with less emphasis on the past. N e w England labor and management, to accomplish their com mon objectives to their mutual advantage, are faced with the need for working together to per mit necessary changes. Industrial growth and bet ter regional prospects can be enhanced by good management-labor relations, not only at the bar gaining table but also in community a f i s far. N ew bu t E n gla n d ’ s w a g e levels in te x tile s th e has com e closer t o le v e l those are in recen t years o f o th er regions. W a g e s Paul M d iversified , a n d P e rs o n a l In c o m e W ith in the six N e w E n gla n d States, h ow ever, w id e differences in incom e are apparent. C o n necticut, the second highest S ta te in the N a tio n in term s o f per capita incom e, easily led the oth er States in the region in 1955 w ith $2,499; fo llo w ed b y M assachusetts w ith $2,097; R h o d e Islan d, $1,957; N e w H am pshire, $1,732; M a in e, $1,593; and V erm on t, $1,535. T h e excess o f N e w E n gla n d ’s per capita incom e o v e r the n ational average has been stea d ily re duced fro m 25 percen t in 1929 to 13 percen t in 1955.2 H o w e v e r, this same ten den cy to increase dollarw ise, bu t a t a decreasing rate, is n oticeable in oth er industrialized areas. B y contrast, regions w ith the low est per capita incom e in past years, such as the Southeast, Southw est, and N o r th west, h ave shown the greatest re la tiv e im p ro ve m ent. In co m e fro m w ages and salaries accounted fo r alm ost 70 percent o f N e w E n g la n d ’s incom e in 1954. T h e im portan ce o f m anu facturing to the region is illu strated b y the fa c t th a t alm ost a third o f its personal incom e was d erived from m anufacturing, as com pared w ith a fou rth fo r the U n ited States as a w hole. W h olesale and reta il trade accounted fo r a sizable bu t considerably sm aller percentage, w ith slig h tly under oneeighth o f the regio n ’s personal incom e a ttrib u tab le to this source.3 A lth o u gh com m on historical bonds unite th e six N e w E n gla n d States, it w ou ld be a m istake to overem phasize the qualities w hich th e y h ave in ulkern T h e e c o n o m ic s t a t u s o f a n y area m a y be m easured b y variou s yardsticks. A n y o f them , inclu ding em ploym en t, capital in vestm ent, produc tiv it y , and wages, to choose bu t a few , serve as useful tools in eva lu a tin g grow th in a dynam ic society. T h e present a rticle is concerned p rim a rily w ith w ages o f N e w E n gla n d w orkers and h ow they com pare w ith those elsewhere in the U n ite d States. W ages, o f course, m ean m a n y things to m an y people. T o the em ployer, th e y represent the cost o f h irin g la b o r; to the m arket research analyst— p oten tia l purchasing p o w er; to the sociologist— attain able levels in the standard o f liv in g ; to the econom ist engaged in fiscal planning, th e y repre sent the largest single source o f gross n ational incom e. T o the w orker, wages represent m a n y o f these things b u t p rin cip ally the retu rn fo r effort expended. I t is difficu lt to measure w age levels accu rately fo r a n y broad geograph ic area. T o a grea t extent, w ages depend on the ty p e o f industry, skill o f the w orker, size o f the firm , degree o f unionization, and a h ost o f oth er factors. A s a result, w id e differences w ith in an area can and do exist. R eg io n a l W a g e and In co m e L e v e ls F r o m the p o in t o f v ie w o f per capita personal incom e, N e w E n gla n d com pares v e r y fa v o ra b ly w ith oth er areas o f the U n ite d States. In 1955, p er capita personal incom e fo r the 6 States was $2,087 or a p p rox im a tely 13 percen t a b o ve the n ation al average. F o r the seven broad geograph ic areas o f the cou ntry, the N e w E n gla n d average was exceeded o n ly b y the States o f the F a r W e s t *C harles F. Schw artz and Robert E. Graham Jr., Personal Incom by , e States in 1 5 . {In Survey of C 95 urrent B usiness, W ashington, August 1 5 , 96 pp. 8 0 -1 .) aIbid (p. 8). >C harles F. Schw artz and Robert E. Graham J Personal Incom by , r., e S tates, 1 2 -5 . {In Survey of Current B ess, W 99 4 usin ashington, Septem ber 1 5 , pp. 2 -2 .) 95 0 1 ($2,189) and the M id d le E a st ($2,100).1 (24) 25 com m on, to the exclusion o f im p orta n t differences w hich exist. T o use the obvious com parison, the econ om y o f N e w H am pshire, w ith its dependence on shoes and textiles, is fa r differen t fro m the econ om y o f C onnecticut and its concentration on aircraft, brass, m achinery, and oth er hard-goods industries. In Septem ber 1956, gross average h ou rly earnings fo r produ ction w orkers in m anufacturing industries reached the $2 m ark fo r the first tim e in the N a tio n ’s h istory. A m o n g the N e w E n glan d States, earnings va ried b y m ore than 20 percent, w ith C on n ecticu t leadin g the oth er States w ith a verage earnings o f $2 an hour, fo llo w ed b y M assachusetts ($1.83), R h od e Islan d ($1.67), V erm o n t ($1.61), M a in e ($1.59), and N e w H a m p shire ($ 1. 56) .4 (See ch a rt.) S ta te earnings va ried considerably b y area and b y industry. Springfield, V t., is a case in p oin t where, because o f the dom in ant m achine-tool industry, gross a verage h ou rly earnings w ere o n ly 4 cents behind the C on n ecticu t statew ide average. Th ese statew ide averages m ust be used cautiously, since th ey reflect, to a grea t extent, the industrial com posi tion o f the S ta te and also the len gth o f the w ork w eek, since prem iu m p a y and shift differentials are included. D u rin g S eptem ber 1956, average hours w orked ran ged fro m 39.4 in R h o d e Islan d to 41.9 in V erm on t. E con om ica lly, there is strong ju stification fo r considering N e w E n glan d according to a northsouth division. Earnings in Massachusetts, C o n necticut, and R h o d e Islan d are usually higher than in V erm o n t, M a in e, and N e w H am pshire. T h e 1950 su rvey o f F a m ily In com e, E x p en d i tures, and S avings b y the Bureau o f L a b o r S tatis tics substantiated this general tendency. A nn u al m on ey incom e o f w age-earner and clerical-w orker fam ilies fo r the eigh t N e w E n glan d cities included in the stu dy ran ged fro m $4,689 in M id d leto w n , Conn., to $3,423 in P o rtla n d , M a in e .5 C o m p a rable incom e in the rem ainin g cities was H a rtfo rd , Conn., $4,246; B oston, M ass., $3,886; B arre, V t., 4 S table 0-7, pp. 4 2 1 of th issu ee 1 -4 8 is e. * S Fam Incom Expenditures, and Savings in 1 5 , BLS Bull. 1 9 ee ily e, 90 07 R evised, 1 5 (pp. 1 -4 ). 93 7 1 • Report of th New England Textile Industry by C m e om ittee Appointed by th C feren of New England G e on ce overnors, 1 5 [Seym E. H 92 our arris, chairm Littauer C an, enter), C bridge, M am ass. (p. 1 9 2 ). 7Average straight-tim hourly earn gs exclude prem e in iumpay fo overtim r e and for w onw ork eekends, holidays, and late sh and in th respect differ ifts is fromgro average hourly earn gs m ss in entioned earlier. 8S E ee arnings in C ottonTextiles, Novem 1 5 , M ber 9 4 onthly Labor R eview , May 1 5 (p. 5 3 95 3 ). Gross Average Hourly Earnings of Factory Production Workers S tem 1 5 ep ber 9 6 $2.00 U IT D NE SAE TTS $Z00 C n ecticu LM on t assa- R od V o t h e ermn ch s tts Islan ue d UtT DSAE DP RMN O L B R N E T T S EA T E T F A O B R A Of LA O ST T TIC UEU B R A IS S M aine New H m sh a p ire Su e Br a o L b r S tis s o rc : ue u f a o ta tic a d Co e tin S te Ae c s n o pra g ta g nie $3,727; Provid en ce, R . I., $3,515; B an gor, M a in e, $3,513; and La con ia , N . H ., $3,485. W a g e s in S oft-G o od s In du stries Textiles. Im p o rta n t differentials betw een w a ge levels o f tex tile plants in N e w E n gla n d and those in the South h ave existed throughout the 20th century. A s a result, m a n y generalizations h ave been m ade leadin g to the erroneous conclusion th at N e w E n gla n d is a high-w age area. In the period 1922-26, N e w E n glan d m ills m ain tain ed an average w age differen tial o f 36 percen t o v e r southern plants.6 H o w e v e r, in ensuing years industrialization in the South gra d u ally brou gh t the tw o closer together. B y 1939, the differen tial in the co tto n -textile in du stry had been reduced to 20 percent and, at the tim e o f the B ureau o f L a b o r Statistics last occupational w age su rvey o f th a t in du stry in N o v e m b e r 1954, a verage straight-tim e h ou rly e a rn in g s7 o f the in d u stry’s produ ction w orkers in N e w E n glan d ($1.32) w ere o n ly 13 p er cent higher than the average ($1.17) paid in the Southeast, w here o v e r 4 ou t o f 5 w orkers in the in du stry w ere located.8 P ro b a b ly a m ore m eaningfu l comparison, h ow ever, can be m ade b y ty p e o f product. N e w E n gla n d m ills h ave tended to concentrate on finecom bed cotton fabrics since, because o f their skilled la b or force and the low er p roportion o f ra w m a terial costs to to ta l cost, th e y can operate m ore c o m p e titiv e ly w ith oth er areas. W ork ers in in tegra ted m ills or those perform in g the com plete operation on fine-com bed cottons a veraged $1.31 26 an hour as com pared w ith S I.27 fo r sim ilar oper ations in the Southeast. T h e differen tial fo r com parable products is o b vio u sly much less than th at fo r all co tto n -textile products, including carded yarn, duck cloth, and gen erally coarser fabrics w hich constitu te the bu lk o f southern production. N o rth -S o u th differentials also ten d to v a r y b y occupation. In N o v e m b e r 1954, h ou rly w ages fo r the m ore skilled occupations such as m en loom fixers and w eavers w ork in g on com bed yarn fabrics in N e w E n gla n d w ere $1.67 and $1.50, resp ectively, as com pared w ith $1.63 and $1.44 in southeastern plants. In oth er occupations, h ow ever, in the unskilled and sem iskilled categories, the differences w ere as h igh as 25 cents an hour. I n the m anufacture o f synth etic textiles, N e w E n gla n d m ills accounted fo r about 14 percent o f the produ ction w orkers em ployed in N o v e m b e r 1954. O f the three m a jo r produ cin g areas, h igh est h ou rly earnings o f $1.35 w ere reported in N e w E n glan d, w ith w orkers in m ills in the M id d le A tla n tic States averagin g $1.32 and those in the Southeast, $1.22 an hour.9 N e w E n gla n d leads all oth er regions in the m an ufacture o f w oolen and w orsted goods. In 1952, o v e r 60 percen t o f all persons em ployed in the produ ction o f these goods w orked in N e w Englan d. Because o f the grea ter skills required, their wages are gen era lly h igh er than those in the cotton - and sy n th etic-textile industry. In the period A p r ilM a y 1952, a t the tim e o f the latest occupational w a ge su rvey o f the w oolen and w orsted goods in du stry m ade b y the Bureau o f L a b o r Statistics, a verage stra igh t-tim e earnings fo r the entire in du stry w ere $1.45 an hour as com pared w ith $1.50 an hour in N e w E n gla n d m ills. B y com parison, a verage h ou rly earnings w ere slig h tly lo w er in the M id d le A tla n tic States ($1.47) and considerably lo w er in the Southeast ($1.19). Th ese three areas com bined accounted fo r o v e r nine-tenths o f the to ta l em p loym en t in the in du stry.1 0 Footwear. N e w E n gla n d tra d itio n a lly leads oth er areas o f the U n ite d States in the m anufacture o f fo o tw e a r.1 Since 1949, its share o f the n ational 1 ou tp u t has been increasing, and cu rren tly o v e r 37 percen t o f all fo o tw ea r produced in the U n ite d S tates is m anufactured in N e w E n glan d. In 1953, stra igh t-tim e average h ou rly earnings in the N e w E n gla n d and M id d le A tla n tic regions w e re about 6 percen t higher than in the G reat L a k es area and 10 percent h igher than in the M id d le W e s t.1 T h e fo u r areas represent the m ain shoe 2 produ cing areas o f the country. T h e fa vo ra b le ran kin g o f N e w E n gla n d was p a rtly explained b y the fa c t th a t about h a lf o f its shoe w orkers w ere engaged in the produ ction o f w om en ’s cem ent-process shoes, con ven tion al lasted— the process fo r w hich w ages w ere highest. M o s t o f its rem ainin g w orkers w ere produ cin g m en ’s G o od y ea r w e lt dress shoes, the n ext highest paid group. W a g e s in M eta lw o rk in g Nonelectrical Machinery. In the la tte r p a rt o f 1946, m ach in ery (except electrical), the largest m a jo r group w ith in the m eta lw o rk in g industries, em ployed about 12 percen t o f all N e w E n gla n d w orkers engaged in m anufacturing. D im in g the succeeding 10 years, there h ave been o n ly slight variances from y e a r to year. B L S studies illus tra te v e r y clearly the im p ortan ce o f this in d u stry to N e w En glan d. A v e r a g e straigh t-tim e h ou rly earnings in 1956 fo r about h a lf o f all occupations studied in three m a jo r N e w E n gla n d m ach in ery centers— B oston, W orcester, and H a rtfo rd — w ere o v e r $2 an hour.1 R a tes in H a rtfo rd w ere gener 3 a lly higher than in the oth er tw o cities and ran ged fro m $1.52 an hour fo r jan itors to $2.35 fo r too l and die makers. B oston rates, ran gin g fro m $1.43 to $2.24 fo r the same occupations, w ere slig h tly b elo w those in W orcester. C om p ared w ith m ach in ery w orkers’ earnings in oth er areas studied, those in N e w E n gla n d cities la gg ed behind. E arn in gs in the in du stry w ere ty p ic a lly highest in the D e tr o it area, w ith high levels also characteristic o f oth er cities in the G re a t L a k es region, P ittsb u rgh , and, fo r h igh ly skilled jobs, St. Louis. A ran kin g o f earnings fo r skilled m ach in e-tool operators 1 in 21 m a jo r m a4 8S Earnings in Synthetic-Textile M ee anufacturing, Novem ber 1 6 94 M onthly Labor Review June 1 6 (p. 6 9 , 95 5 ). wW oolen and W orsted Textiles Earnings in April-May 1 5 , M 9 2 onthly Labor Review, O ctober 1 5 (p. 4 3 92 0 ). n For a discu ssionof th region’s footw industry, see p. 3 0of th issu e ear 1 is e. n Earnings of S oeW h orkers, M arch 1 5 , M 9 3 onthly Labor Review, January 1 5 (p. 4 ). 94 0 isWage Structure: M achinery M anufacturing, W inter 1 5 -5 , BLS 95 6 Report 1 7 1 5 (pp. 8-9). 0, 96 1 This occupational classificationincludes productionw * orkers ofajourney m level of skill w an orking on such m ines as drill p ach resses, engine lathes, m illing m in and sim types of m ach es, ilar achine to ls. It represents th o e broadest classificationwith the largest num of em ber ployees for w hich com parison is possible. 27 ch in ery areas showed a w id e dispersion— from $2.89 in D e tr o it to $1.89 in D allas. H a rtfo rd ranked in 17th position, W orcester in 19th, and B oston in 20th place (See table 1.) H o w e ver, although N e w E n gla n d did n ot rank am ong the w age leaders in the m ach in ery m anu factu rin g industry, it nonetheless has succeeded in m ain tain in g its re la tiv e position. D u rin g the period 1945-56, w ages in the 21 k e y m ach in ery areas com bined increased 98.3 percent. In this same period, the advance in H a rtfo rd (99.1 p ercen t) was slig h tly ab ove the overa ll average and th a t in B oston (96.4 percen t) slig h tly low er. (T h e increase fo r W orcester, although included in the 21-area average, was n ot published sep arately.) Other Metalworking Industries, T h e stea d y grow th o f tran sportation equ ipm ent and electrical m a ch inery has also been o f grea t im portan ce in N e w E n g la n d ’s progress. Th ese industries have brou gh t to N e w E n gla n d m an u facturing n ot o n ly a h igh ly desirable degree o f diversification b u t also higher wages. D u rin g the past 6 years, fo r exam ple, w ages o f M assachusetts produ ction w orkers in electrical m ach in ery increased from $1.43 an hour in O cto b er 1950 to $1.82 in O ctober 1956, and in tran sportation equ ipm ent from $1.66 to $2.35 an hour during the same period .1 5 Th ese industries represented 27 percen t and 8 percent, re sp ectively, o f produ ction w orkers em p lo y ed in M assachusetts durable-goods m anu fa ctu rin g in O ctober 1956. C om m u nity W a g e L e v e ls T h e com m u n ity w age su rvey has p ro ve d a successful to o l in m easuring the general w age le v e l o f labor m arket areas and has m ade it pos sible to com pare wages in variou s com m unities b o th w ith in a region and am ong d ifferen t regions. T h is ty p e o f su rvey covers a w ide range o f oc cupations com m on to a v a r ie ty o f in du stries: m an u facturing; tran sportation and public u tilities; 1S eM 5 e assachusetts Nonagrieultural Em ploym ent, 1 3 -1 5 , and Manu 99 93 facturing H ours and Earnings, 1 5 -1 5 , M 9 0 9 3 assachusetts D epartm ent of Labor and Industries, 1 5 ; also Total M 94 anufacturing Em ploym and ent E arnings of Production W orkers in M assachusetts, O ctober 1 5 , Mas 96 sach setts D u epartm of Labor. ent 1 W 8 age D ifferen Am ces ong 4 Labor M 0 arkets, M onthly Labor Review , D ecem 1 5 (p. 6 0 ber 9 2 2 ). 1S 7 tatistical Abstract of th United S e tates: 1 5 (7 th ed.), U. S Bureau 96 7 . of th C sus, 1 5 (p. 1 3 e en 96 1 ). T able 1.—Em ploym ent and average straight-tim hourly e earnings for m achine-tool operators, production, class A, in 2 cities, w 1 inter 1955-56 City Detroit____ ___ _ S Louis. ______ _ t. _ C hicago. ... __ __ __ _ Pittsburgh________ _ _ . Milwaukee.._______ __ . _ _ . . . ... Cleveland___ .. __ Philadelphia____ . . . ______ ... ___ Denver___ . . . _ _ Los Angeles-Long Beach___ _ _ _____ ... San Erancisco-O akland . _ .... __ New York___ ____ .. ___ _ New ark-Jersey City_ _ _ _ _____ Portland (Oreg.)_____ ... M inneapolis-St. Paul__ . . . . . . __ H ouston________ . . . . Buffalo.... ....... _ __ H artford __ .... Baltim ore__ ______ _ _ __ . . . ___ _ W orcester___ . . . ____ ___ _ ... ____ Boston. ___ _ _ __ _ Dallas____ _ __ ... __ _____ _ _ _ Average Num o straigh ber f t-tim e w orkers hourly earnin gs 1 ,7 1 03 99 5 7 74 , 9 22 ,4 0 20 ,6 7 57 ,4 0 39 ,1 0 27 2 36 ,7 9 17 ,3 5 23 ,5 9 2 58 , 2 31 5 23 ,3 0 14 ,3 4 92 2 14 ,3 8 62 2 14 ,1 3 24 ,4 6 49 2 $ .8 29 2 9 .4 23 .4 2 2 .4 21 .4 2 0 .4 2 7 .3 23 . 7 23 . 2 21 .3 2 0 .3 2 8 .2 22 . 6 22 . 4 22 . 4 2 3 .2 2 9 .1 28 .1 21 .1 2 9 .0 19 .8 S ource: W age Stru re: M ctu achinery M anufacturing, W inter 1 5 -5 95 6 BLS R eport 1 7 1 5 (pp. 8-9). 0, 96 wholesale and reta il tra d e; finance, insurance, and real estate; and selected service industries. A stu dy o f 40 labor m arket areas in 1952 re vea led basic and im p orta n t differences am ong the areas. G en erally, w ages w ere highest in cities along the P a cific C oast and in the G reat L a k es region, w ith cities in the M id d le A tla n tic area usually higher than in the South and in N e w E n gla n d .1 6 T h is stu dy in dicated w ide differences in the w age levels o f office w orkers am ong N e w E n glan d cities, w hich ranked as fo llow s: H a rtfo rd , 16th; Boston, 27th; W orcester, 32d; and Provid en ce, 38th. W e e k ly salaries in the last-nam ed c ity w ere less than 75 percent o f those received b y office w orkers in San Francisco and D e tro it, the highest ran kin g o f the 40 cities surveyed. S everal factors appear significant in explainin g the re la tiv e position o f N e w E n glan d office workers. A m o n g these are the industrial com position o f the area, w age levels in the various industries, and the supply o f office w orkers re la tive to existing dem and. Residen ts o f the N e w E n gla n d States h ave one o f the highest educational levels in the U n ite d S tates; th eir average o f 10.4 school years com pleted com pares w ith a n ational average o f 9.3 school years com pleted.1 7 In the 1952 stu dy o f 40 m a jo r labor m arket areas, in te rc ity w age relationships fo r selected plant occupations w ere gen era lly sim ilar to those fo r office w orkers except th a t p a y levels in southern 28 2.—Average w eekly salaries or a verage hourly earnings1 for selected occupations in 8 New England cities, h sex, selected m y onths, 1 5 96 T able oston Law Frovi- B ce ren ce den O ccupation and se x arch Sep Febru M ber ary 1 5 tem 96 15 96 15 96 Average w eekly salaries1 W en o om ffice w orkers: C lerks, accounting, class A. Clerks, file, class B_____ C lerks, payroll________ S ecretaries____________ Stenographers, general___ $9 0 $8 0 5 .5 5 .5 4 .5 0 0 4 .5 20 2 0 4 .0 9 0 5. 5 6 .0 7 0 6 .5 10 5 .5 4 0 5 .5 10 $5 0 6 .5 4 .5 40 5 .0 90 6 .5 70 5 .5 80 Average hourlyearnin gs1 Skilled m w en orkers: C arpenters, m aintenance_______________ E lectricians, m aintenance______________ M achinists, m aintenance_______________ Pipefitters, m aintenance_______________ Tool and die m akers__________________ Men custodial and m aterial m ovem w ent orkers: Jan itors, porters, and cleaners___________ Laborers, m aterial handling_____________ Truckdrivers, m edium (1^ to and including 4tons)___________________________ $ .7 11 11 .9 14 .8 11 .8 2 5 .1 19 .1 12 .3 14 .5 $ .9 18 15 .9 2 0 .0 16 .9 21 .3 11 .3 10 .5 12 .8 $.2 2 2 22 .3 20 .3 24 .2 25 .1 12 .4 16 .1 16 .8 1Average weekly salaries are standard salaries paid for standard w ork sch u ed les. Average hourly earnings are straight-tim hourly earn gs, ex e in cluding prem pay for overtim and for work onw ium e eekends, holidays, and latesh ifts. Source: O ccupational W Surveys, Law age rence, M ass., Providence, R. I., and Boston, M ass., BLS Bulls. 1 8 -1 ,1 8 -1 , and 1 0 -4 respectively. 18 1 18 4 22 , areas w ere considerably lo w e r than in N e w E n gla n d cities fo r custodial, w arehousing, and shipping jobs, b u t fo r the skilled m aintenance crafts th e y com pared fa vo ra b ly . W ith in N e w E n glan d, p a y levels fo r m aintenance, custodial, w arehousing, and shipping occupations w ere gen era lly highest in B oston, fo llow ed b y H a rtfo rd , W orcester, and P rovid en c e in th a t order.1 8 In the 1955-56 com m u n ity w age surveys o f 17 areas, p a y levels in P rovid en c e (th e o n ly N e w E n gla n d area in clu ded) ranked 16th fo r w om en office w orkers, 17th fo r skilled m aintenance workers, and 13th fo r custodial and m aterial m ovem en t em ployees.1 9 In recent years, la rg e ly because o f the relocation and consolidation o f tex tile plants, several N e w E n gla n d la b o r m arkets h ave been plagu ed b y a substantial la b o r surplus. A lth o u gh there are some d ata on the econom ic and social effects o f such conditions upon the la b o r force, little in form a tion has been ava ila b le on th eir im p act upon wages. In F e b ru a ry 1956, at the u rging o f local com m u n ity groups, the Bureau o f L a b o r S tatistics conducted a full-scale com m u n ity w age su rvey o f the Law ren ce, M ass., area. L a w ren ce at one tim e w as the center o f the w oolen and w orsted in du stry and, as recen tly as 1941, about 80 percent o f its 37,000 m anu facturing em ployees w ere engaged in the produ ction o f tex tile goods. B y 1956, h ow ever, slig h tly less than 6,000 w orkers, or a p p rox im a tely one-fourth o f its fa c to ry w o rk force, w ere so em ployed. S evere hardships resulted from the cu rtailm ent o f tex tile produ ction and, in 1949, an estim ated 21,000 persons w ere u nem ployed. A lth o u gh grea t im p rovem en t had taken place b y the tim e o f the B L S su rvey in 1956, an estim ated 6,000 w ere still u nem ployed. T a b le 2 shows co m p a rative scales in B oston, L a w ren ce, and Provid en ce, fo r all occupations fo r w hich com parison is possible. A lth o u gh the L a w ren ce and P ro vid en c e surveys w ere m ade 7 and 6 m onths, re sp ectively, before the B oston study, several general conclusions can be drawn. E v e n i f allow ance had been m ade fo r the increases w hich p ro b a b ly occurred in L a w ren ce and P r o v i dence in the in terim , w ages w ou ld h a ve va ried considerably am ong the three cities although th e y are less than 70 m iles apart. R a tes w ere con siderably higher in B oston than in the oth er tw o cities. D ifferen ces w ere m ost clea rly apparent in the skilled m aintenance trades, w here B oston h ou rly rates ran ged from 36 to 51 cents a b o ve those in L a w ren ce and fro m 20 to 37 cents m ore than in P ro vid en c e.2 0 I n the office and custodial and m aterial m o vem en t occupations, differen tials also existed b u t n ot to such a m arked degree. U nion W a g e Scales R a tes paid in the bu ildin g trades also serve as a useful barom eter o f a regio n ’s w a ge structure. In January 1957, bricklayers in nine N e w E n gla n d cities studied q u a rterly b y the Bureau o f L a b o r Statistics earned $3.25 an hour or higher. By contrast, the union scale fo r bu ildin g laborers was slig h tly o v e r $2 an hour, except in P o rtla n d , M a in e, w here it was $1.95. Because o f local bargain in g patterns, w ages in construction trades v a r y fro m c ity to c ity and fro m region to region. D a ta fro m the m ore com prehensive B L S annual su rvey o f union scales in the bu ildin g trades show th a t on J u ly 1, 1S e W D 8 e age ifferen Am 4 Labor M ces ong 0 arkets, op. cit. (p. 6 2 2 ). 1S e E 9 e arnings and W age D ifferentials in 1 Labor M 7 arkets, 1 6 -5 , 95 6 M onthly Labor Review Septem 1 5 (p. 1 4 ). , ber 9 6 05 2O 0 ccupational Wage Surveys, Law rence, M ass., Providence, R. I., and B oston, M ass., BLS Bulls. 1 8 -1 , 1 8 -1 , and 1 0 -4 respectively. 18 1 18 4 22 , 29 1956, fo r all bu ildin g trades w orkers (journeym en, helpers, and laborers) in N e w En glan d, a verage h ou rly w age rates w ere $2.85 an horn.2 B y 1 contrast, the n ational average was $3.04 an hour and the range fo r 9 m a jo r geograph ical regions was fro m $3.31 in the M id d le A tla n tic States to $2.56 in the Southeast (ta b le 3). R ela ted W a g e Practices In recent years, considerable atten tion has been g iv en to frin ge benefits. W h eth er considered as a cost item to m anagem ent or as a social gain to labor, there can be little question o f the need to consider them w hen discussing wages. R esults o f previous surveys in the cotton, syn thetic, and w oolen and w orsted tex tile in du stry revea l th a t N e w E n gla n d produ ction w orkers w ere gra n ted pa id holidays to a grea ter degree than those in o th er areas. A p p ro x im a te ly 9 out o f 10 N e w E n gla n d tex tile w orkers received 6 or m ore paid h olidays in all 3 segments o f the indus try . In the M id d le A tla n tic States, paid h olid a y provisions w ere abou t the same except in syn th etic textiles w here o n ly about h a lf the pla n t produ ction em ployees received 6 or m ore paid holidays. B y contrast, in both cotton and syn th etic textiles in the Southeast o n ly about 1 out o f 5 produ ction w orkers received paid holidays, usually 1 or 2 holidays a year. In plants m anufacturing w oolen and w orsted textiles in the Southeast, about 1 out o f 10 produ ction w orkers received 6 paid holidays a year, w h ile about 8 out o f 10 received no paid holidays. In fo otw ea r, am ong the m a jo r produ cin g areas, 3 ou t o f 5 produ ction w orkers in the N e w E n glan d and M id d le A tla n tic areas received 6 o r m ore paid holidays, w hile the percen tage was slig h tly higher in the G rea t L a k es region and considerably higher in the M id d le W e s t w here slig h tly o v e r 9 ou t o f 10 p la n t w orkers received 6 o r m ore paid holidays. T h e 1955-56 series o f m ach in ery su rveys in 21 areas o f the U n ite d States reveals th a t in B oston and N e w Y o r k a m a jo rity o f p la n t em ployees received 8 or m ore paid holidays and about a third o f the w orkers received 9 or m ore pa id holidays. In W orcester and H a rtfo rd , three-fourths o f the plan t em ployees in these areas received 7 or Union W ages and H ours: Building Trades, July 1 1 5 , BLS Bull. , 96 1 0 ,1 5 . 25 97 T able 3.—Average union hourly w age ra in th building tes e trad by region, July 1 1 6 es , 95 R egion All building trades..____ ... _ __ ____ _ _____ _ M iddle Atlantic_ _ _ __ _ ____ _ _ ... _ ... _ _ G reat Lakes___ __ __ ... __ ___ ________ __ _ _ Pacific._____ _ ___ ___ _ _____ _ Middle W est _ .____ __ __ __ _ _______ __ _ _ New England... _ __ __ _______ ___ ____ _ . _ _ Border States____ ____ ____ ___ _ _ _____ _ __ M ountain__ _ _____ __ _ _____ Southw est_____ __ _ _ _______ _______ ____ Southeast..__ __ ______ __ __ __________ _ __ _ Average hourly rate $ .0 34 31 .3 3 5 .1 3 0 .0 2 7 .9 2 5 .8 2 2 .8 24 .7 27 . 3 25 . 6 Source: Union W ages and H ours: Building Trades, July 1 1 5 , BLS , 96 Bull. 1 0 , 1 5 . 25 97 m ore paid holidays. B y contrast, the predom in an t practice in 10 o f the 21 areas was to gra n t 6 paid holidays during the year. In the fo o tw ea r industry, the m a jo rity o f N e w E n gla n d shoe w orkers in 1953 received 1 w eek ’s va ca tion a fter 1 y e a r o f em ploym en t and 2 w eeks a fter 5 years. W h en the 4 principal shoe-produc in g areas are ranked according to the percen tage o f w orkers receivin g 2 weeks a fter 5 years’ service, the M id d le W e s t area leads, fo llow ed b y the G reat Lakes, N e w En glan d, and M id d le A tla n tic areas in th a t order. P a id va ca tion policies a p p lyin g to N e w E n gla n d produ ction w orkers in the tex tile in du stry w ere gen era lly superior to oth er sections o f the U n ite d States. I n cotto n and synth etic textiles, N e w E n gla n d plan t em ployees ty p ic a lly received v a c a tion benefits based on a percentage o f the in d i vid u a l’s annual earnings; nam ely, 2 percent a fter 1 year, 3 percen t a fter 3 years, and 4 percent a fter 5 years. Provision s in the M id d le A tla n tic S tates w ere n ot as extensive as in N e w E n glan d b u t m ore lib era l than in the Southeast w here less than 1 in 10 plan t em ployees received addition al va ca tion provisions a fter 3 years o f service. In w oolen and w orsted tex tile m ills also, N e w E n g land va ca tion provisions fo r plan t em ployees w ere usually m ore liberal than those in the Southeast and slig h tly higher than those a p p lyin g to plan t em ployees in w oolen and w orsted m ills in the M id d le A tla n tic States. In the broad area o f health and insurance plans, N e w E n glan d tex tile w orkers also received bene fits to a grea ter degree than in the M id d le A tla n tic and Southeast areas. H o w e ver, in b oth textiles and footw ea r, coverage under pension plans was ex trem ely lim ited b o th on a national and region al basis. A b o u t 10 percen t o f N e w E n glan d plan t 30 em ployees w ere covered under pension program s; b u t in fo o tw ea r coverage was even m ore lim ited, w ith o n ly 2 percent o f the area's shoe w orkers covered under a pension program . H o w e v e r, in contrast to the re la tiv e ly lo w p ro portion o f p la n t w orkers covered b y pension plans, o v e r three-fourths o f all N e w E n glan d production workers in cotton and about one-half o f those in syn th etic textiles w ere covered b y retirem en t severance p a y plans calling fo r stated am ounts fo r each y e a r o f service. T h is emphasis on retirem en t severance plans as opposed to pension program s is due to a num ber o f factors, bu t p rim a rily to the contractin g nature o f em p loym en t and re la tiv e in sta b ility o f the industry , plus the cost o f a pension program . C om parative L iv in g Costs One final standard can be used in eva lu a tin g the re la tive position o f N e w E n gla n d w age earners. W a g e statistics h ave considerably m ore m eaning w hen considered in relationship to prices. A l though current statistics are n ot available on in te rc ity com parisons o f the cost o f livin g, the 1951 C it y W o rk e r's F a m ily B u d g et can be used to a d va n ta ge.2 T h is bu dget is defined as “ the 2 annual cost o f a m odest bu t adequate le v e l o f liv in g " fo r a four-person urban fa m ily. T h e cost o f this bu dget, at O ctob er 1951 prices, in 34 m ajor cities ran ged fro m $3,812 in N e w Orleans to $4,454 in W ash in gton , D . C. B oston ranked in the top third, w ith an estim ated bu dget o f $4,217, w hich was exceeded in such cities as M ilw a u k ee, R ich m on d, and L o s A ngeles. N e w Y o r k and P h iladelph ia had budgets considerably b elo w the B oston figure— $4,083 and $4,078, respectively. T h e estim ated cost o f this same le v e l o f liv in g in M an ch ester, N . H ., was $4,090 and in Portla n d , M a in e, $4,021. T h is bu dget has not been recom pu ted since 1951. H o w e v e r, som e measure o f price change is a v a il able in the Consum er P rice In d e x w hich in O cto b er 1956 was 117.7 (1947-49 = 100) or 5 per cent a b o ve O ctob er 1951 fo r the U n ite d States as a w hole. T h e in dex fo r B oston h ad risen to 119.3, or 7.1 percent o v e r its le v e l fo r the earlier period. 2 City W 2 orker's Fam Budget for O ily ctober 1 5 , M 9 1 onthly Labor R eview . May 1 5 (p. 5 0 92 2 ). S um m ary W ag es and incom e in N e w E n gla n d gen era lly advan ce and decline in the same m anner as th e y do in oth er sections o f the U n ite d States. T h e principal exception to this ten d en cy is fou nd in the tex tile in du stry w here w ages are u sually set b y bargainin g ta k in g place w ith in the region. W ith in N e w E n glan d, w ages and incom e v a r y b y area, industry, and le v e l o f skill. W a g es and incom e are gen erally higher in the southern h alf o f N e w E n gla n d and p a rticu la rly in C on necticut. Fu rth erm ore, w ith in the States them selves im po rta n t w age differences exist. In M assachusetts, fo r exam ple, occu pational w age differences are clea rly evid en t fo r com parable jobs in the L a w rence and B oston areas. T h e substantial unem p lo ym en t problem th a t has existed in L a w ren ce in recent years appears to be one o f the im p orta n t factors con tribu tin g to this difference in wages. In tw o principal soft-goods industries— shoes and textiles— w ages in N e w E n gla n d are higher than those in oth er regions, although the d iffer ential has been n arrow in g in recent years in the case o f textiles. In relation to oth er areas o f the U n ited States, w a ge levels in N e w E n gla n d cities gen erally ran k b elo w cities o f the P a cific C oast, M id d le W est, and M id d le A tla n tic States. On the oth er hand, p a y levels o f office w orkers in southern cities and in N e w E n gla n d correspond closely, w h ile plan t w orkers on in direct jobs (m ain tenance, custodial, w arehousing, and sh ippin g) in N e w E n glan d gen era lly h a ve h igh er p a y levels than their counterparts in the South. T h e m ost n oticeable trend in recen t years has been fo r ligh t-w eigh t m eta l fa b rica tin g and assem b ly com panies to lo ca te in N e w En glan d. E x is t in g w age rates and an industrialized w o rk force h ave offered a fe rtile field fo r m anufacturers o f electronic equipm ent. T h is has been especially n oticeable in M assachusetts. In a sim ilar m an ner, the m achine-tool in du stry in C on n ecticu t has added n ew firm s because o f a w a ge differen tial fa vo ra b le in relation to oth er areas. In m an y cases, these n ew ly a rrived m anufacturers o f du r ables p a y h igh er w ages than the soft-goods indus tries w hich in fo rm er tim es set the pace fo r the N e w E n glan d econom y. A t the sam e tim e, the new industries m ean increasing diversification o f the N e w E n glan d econom ic scene. Improvement has taken place in those New England areas whi ch have been s t ricken by severe u n e m p l o y ment, but some difficult problems remain to be solved. The Problem of Depressed Areas W il l ia m H. M ie r n y k T h e im p a c t o f the recession o f 1947-49 w as un usually severe in N e w E n glan d. In addition to the cyclical rise in unem ploym ent, certain struc tural changes w ere ta k in g place in the regional econ om y w hich added to tota l u nem ploym ent. In du strial a c tiv ity declined from 1947 through 1949. Insured u n em ploym ent in N e w E n gla n d passed the 350,000 m ark during the second qu arter o f 1949.1 T o t a l u n em ploym ent w as in excess o f this, since som e w orkers had exhausted their un em ploym en t com pensation ben efit rights, and others w ere n ot covered b y u nem ploym en t insur ance.2 In M assachusetts and R h o d e Island, the u nem ploym ent com pensation reserve funds w ere threatened w ith depletion.3 In J u ly 1949, the trend was reversed. P ro d u c tion and em ploym en t began to increase; and b y the ou tbreak o f the K o re a n conflict, in June 1950, the r e v iv a l w as w ell under w a y. D u rin g the hos tilities, em p loym en t and produ ction rem ained a t high levels. T h e recession had ended, bu t it le ft behind a serious problem o f localized unem p loym en t. W h ile the region as a w h ole en joyed prosp erity, it w as d o tte d w ith a num ber of seriously depressed areas. D u rin g the recession, em p loym en t had declined in all industries. B u t fo llo w in g a b rief re v iv a l in 1950 and 1951, em ploym en t in the N e w E n glan d tex tile industries resum ed the secular decline w hich had been h alted during W o r ld W a r I I and the im m ediate postw ar period. A t th a t tim e, the tex tile in du stry group was still the largest em p lo yer o f industrial la b or in the region. T h e consequences o f the decline in textiles could h ave been disastrous fo r the entire region. B u t during the r e v iv a l o f la te 1949, the com m unica tions equ ipm ent in du stry began to expand ra p id ly in N e w E n glan d, and to m a n y observers it ap peared th a t this transition in industrial structure, w hile producing tem p orary problem s, was actu ally strengthening the regional econ om y.4 C oncern o ver the decline in tex tile em ploym en t was m iti gated b y the grow th o f em p loym en t in electronics. A n d as this grow th proceeded, there w as an in creasing ten den cy in the region to v ie w the transi tion o ptim istically. In term s o f aggregate em ploym en t, produ ction, and incomes, N e w E n gla n d 's re co v ery fro m the recession appeared to be progressing satisfactorily. B u t the rate o f u nem ploym ent in N e w E n glan d rem ained w ell ab ove the n ational average. I t soon becam e evid en t th a t new in du stry was n ot grow in g in the same areas in w hich old in du stry was declining. A lso, w hile some o f the w orkers who had been displaced b y the closing o f tex tile m ills w ere finding jobs in the com m unications equ ipm ent and oth er grow th industries, this i The E conom State of New England, New H ic aven, Yale University P ress, 1 5 (p. 3 0 94 1 ). 3 S eEm e ploym and Unem ent ploym S ent tatistics, H earings beforeth Sub e com itteeonE m conom S ic tatistics, Join C m t om itteeonth E e conom R ic eport (8 th C 4 ong., 1 t sess.), Nov. 7 1 5 (pp. 3 -3 ). s , 95 3 5 3 A contributing factor in M assachusetts w th inadequate unem as e ploy m com ent pensation tax policy w hich failed to provide an adequate reserve fund. S Report on Unem ee ploym ent C pensation B om enefit C osts in M assachusetts, M assachusetts D epartm of Labor and Industries, Divi ent sion of Em ploym Security, Boston, August 1 5 (p. 6); and B ent 90 enefit Fi nancing and Solvency of th Em e ploym Security Fund in R ent hode Island, R hode Island D epartm of Em ent ploym Security, Providence, Novem ent ber 1 5 (p. 3 , fif.). 90 3 <The E conom State of New England, op. c (pp. 1 -1 ). ic it. 4 7 (31) 32 shift in employment was not as widespread as m any believed. The level of unemployment remained high in the textile towns, hard hit b y the liquidation or outmigration of mills. Thus, when the minor recession of 1953-54 occurred, there was a sharp rise in unemployment in many of these communities. Since then, conditions have slowly improved, but the problem of local ized unemployment has not been solved yet in all of the region's depressed areas. F a il u r e t o A d a p t t o C h a n g e Some depressed areas in N e w England re bounded quickly from the loss of textile jobs. N e w manufacturing establishments moved into these communities to take up the slack. To some extent, the quick recovery of these areas was due to effective local redevelopment activities. In Nashua, N . H ., for example, an announce ment in 1948 of a proposed liquidation of a large mill formerly operated b y Textron, Inc., produced a strong public reaction. The Textile W orkers Union of America and other groups protested the liquidation so vigorously that a congressional investigation was held.5 The publicity, among other things, led the company to initiate and support an effective redevelopment program. Portions of the mill building were occupied b y new and smaller establishments, and the economic base of the community became somewhat more diversified. In m any ways, however, the experi ence of N ash u a is a special case. Manchester, N . H ., likewise became a surplus labor area owing to the loss of textile jobs, and there has been a similar growth of new and more diversified manufacturing establishments in this community. B u t recovery in Manchester proceeded far more slowly than it had in Nashua. Redevelopment activities in other communities have been less successful. The communities of Lawrence, Lowell, Fall River, and N e w Bedford in Massachusetts, and Providence, R . I., were classified as surplus labor areas for a m ajor part of the past 8 years.6 W h ile the employment situation in all of these areas has improved since 1954, Lawrence, Lowell, and Providence have not fully recovered from the shock of the recession of 1948-49. A n d it was not until late in 1956 that Fall R iver and N e w Bedford were removed from the labor surplus category. F o r a num ber of reasons, these communities adapted to change only slowly and with consider able difficulty. The liquidation of textile mills provided a vast amount of vacant factory space, bu t this was often unsuitable for other types of manufacturing operations. U ntil recently, these areas were largely bypassed b y the growth indus tries, some of which expanded in smaller, less industrialized communities, while others located in or near the Boston M etropolitan Area, where a large cluster of electronics establishments has appeared. A further explanation of the slow adaptation to change is to be found in the characteristics of the workers displaced b y the outmigration of textile mills. A substantial proportion of these workers were well past middle age; and while they m ay have had m any years of textile employment ahead of them, they became marginal workers with the loss of their jobs. The more mobile, younger displaced workers frequently migrated to jobs in other areas. N e w establishments which located in these areas usually chose the younger members of the labor force, and some employed a large proportion of women. Thus, the average age of the unemployed workers remaining in the depressed communities was raised. T he older, male workers in the community were not easily reemployed. Initially, redevelopment activities in these com munities relied heavily upon advertising the availability of labor and vacant plant space. Only in recent years have local redevelopment agencies taken positive steps, such as the develop ment of industrial parks and the construction of modern plant buildings, in an effort to attract new types of industry. 4 Investigation of Closing of Nashua, N. H., Mills and Operations of Textron, Inc., Hearings before a Subcommittee of the Committee on Inter* state and Foreign Commerce, U. S. Senate (80th Cong., 2d sess.), Pt. 1,1948. «The Bureau of Employment Security classifies areas, according to rela tive adequacy of labor supply, into six major categories designated by letters ranging from A to F. Group A reflects the relatively greatest labor scarcity; group C denotes a rate of unemployment about in line with the national average; and D, E, and F are designated as areas of substantial labor surplus, with F denoting the relatively greatest surplus. A more comprehensive definition of area classifications appears in the Bimonthly Summary of Labor Market Developments in Major Areas, Bureau of Employment Security, U. S. Department of Labor. 33 M a g n itu d e o f th e P r o b le m It is difficult to make an accurate estimate of the number of chronically unemployed in a depressed area. Theoretically, it is possible to make adjustments for unemployment due to seasonal and cyclical causes and to allow for frictional unemployment. In practice, however, it is difficult to make accurate estimates of the number of workers unemployed owing to secular or structural change. Moreover, there are other problems involving the definition of an unem ployed worker. Only those workers in a labor market area who are without jobs and actively seeking work are counted as unemployed. H o w ever, there are persons in the depressed areas of N e w England who are available and interested in further employment, but who have given up an active search for a job. These are often older women, with long records of employment in textile mills. After the loss of their textile jobs, some continued to register at the local employment office for 2 or 3 years. B u t eventually, failing to find work, they discontinued an active search for a job, although they continued to desire further employment. I f the labor force of a community is defined as estimated total em ploym ent7 plus the unem ployed, the following tabulation, presenting un employment as a percent of the labor force, provides a measure of the problem in the 5 N e w England labor market areas in which chronic unemployment has been most serious during the past 8 years. Unemployment asapercent ofthelaborforce (annual averages 1 2) 195 2 Law rence, M ass _ Low ell, M ass F all R iver, M ass N ew Bedford, M a ss___ Providence, R . I _____ 195 S 195 4 23. 1 7. 6 11. 2 19. 0 6. 5 24. 1 10. 5 5. 4 5. 7 9. 3 11. 3 12. 3 6. 9 8. 4 6. 1 1955 16. 8. 6. 8. 4 8 1 6 8. 7 195 6 10. 6. 6. 6. 2 8 3 1 8. 0 1 Total estimated employment plus unemployed. 2 Averages based on bimonthly data (January, March, May, July, Septem ber, and November). S : Unpublished data provided by Bureau of Employment Security, U. S. Department of Labor, as reported by the Massachusetts Division of Employment Security except for Providence. ource 7 Total employment includes nonagricultural wage and salaried workers, nonagrieultural domestic, self-employed, and unpaid family workers, and agricultural workers. 8 In July 1952, for example, there was an arbitrated wage cut of 6H percent in the northern cotton-rayon textile industry. The preceding tabulation illustrates the effect upon depressed areas of a cyclical rise in unem ployment from a high base of chronic localized unemployment. Between 1952 and 1953, there was a decline in unemployment in all of the selected areas. B u t the recession that began in late 1953 sent unemployment figures upward again in all the selected areas, and except for Fall River, they were higher in 1954 than they had been in 1952. Since 1954, the number of unemployed has de clined in all of the areas listed in the tabulation. B y the end of 1956, Fall R iver and N e w Bedford had been reclassified as group C, or moderate labor surplus areas, but F all R iver was again re classified in January 1957 to the group D sub stantial labor surplus category. Further contrac tion of textile employment, whether cyclical or secular, could again create some of the problems these communities have faced in the past. E ffe c ts u p o n th e C o m m u n ity The existence of a substantial pool of unem ployed in a community tends to exert downward pressure upon the general wage structure of the community. W ages of unionized workers covered b y national or regional agreements in nondepressed industries will not be affected. B u t it is difficult for unions in depressed industries to negotiate in creases in the general wage level. A t times, in deed, workers in these industries have been forced to accept wage reductions in the face of a rising general wage level.8 In addition, the availability of a substantial number of unemployed workers tends to attract certain types of low-wage estab lishments such as textile jobbing shops, certain types of garment factories, and other small estab lishments seeking to obtain workers at the lowest possible wages. Some of the displaced workers, long unemployed, have balked at the low wages, but others have been forced b y necessity to accept them. Labor-m anagem ent relations likewise m ay be come strained. Establishments which continue to operate in these communities m ay resist wage in creases or even seek to impose wage cuts. These are strenuously resisted b y unions, reluctant to give up gains achieved after a long and, at times, costly struggle. 34 Th e local economy, of course, suffers. Trade and service establishments curtail tbe level of their operations. Secondary unemployment occurs, in duced b y the decline in local manufacturing em ployment. I f local business conditions are bad, the community m ay not be able to properly main tain its social capital. Streets, sewer systems, schools, etc., will not receive proper maintenance. If, in addition, there is substantial outmigration of population from the community, some facilities will not be fully used. Consequently, there is a waste of social capital in addition to its deteriora tion. S ta te a n d L o c a l C o m m u n ity R e m e d ia l E ffo r ts U n til quite recently, the redevelopment of de pressed communities was considered to be essen tially a local matter and in practice depended upon local initiative and activity. Some local develop ment programs have been successful in encourag ing sound local growth, as in the case of Nashua, N . H . B u t others have been able to do little to improve local conditions. Some local develop ment organizations, in their anxiety to provide work for the unemployed, have encouraged the location of manufacturing establishments in their communities which later proved to be unstable. Because there is a rapid turnover of such establish ments, they do little to reduce the level of un employment. In N e w England, development activities within communities have not been coordinated b y state wide agencies. Each community agency has sought to solve local problems b y its own means. Some have attempted to fill vacant factory space with new establishments. Others have developed industrial parks and constructed modern plant buildings, hoping thus to induce manufacturers from outside to locate in their areas. There is no evidence that development credit corporations, the new type of financial institution pioneered in N e w E ngland and designed to encourage the develop ment of indigenous businesses, have made a sig nificant contribution to the redevelopment of de pressed areas.9 P robably to a greater extent than elsewhere, the problem of rehabilitating depressed areas in N e w Englan d has been narrow ly conceived and efforts to solve the problem have been largely restricted to local activities. State agencies have, of course, assisted local development groups. B u t with few exceptions, State development organiza tions have been unable to concentrate upon the redevelopment of specific communities.1 0 B y way of contrast, Pennsylvania now has a State agency to deal with this problem.1 And 1 in southern I l n i , localized unemployment i lios s viewed, to some extent at least, as an area rather than a local problem, and i being attacked at the s area level. At the present time, conditions in N e w England are reasonably good. The secular, downward drift in textile employment has slowed down, and there has been a rise in employment in other industries. Moreover, there has been improvement in the employment situation in the depressed areas. But with a cyclical downturn in employment, the situ ation in those depressed areas which are not yet fully rehabilitated would again worsen. As in the past, they would enter a recession with relatively high levels of unemployment. P r o p o s e d F e d e r a l L e g is la tio n In their report of January 1956, the Council of Economic Advisers recognized that “ the fate of distressed communities is a matter of national as well as local concern.” 1 Congressmen, as well, 2 have recognized that the long-run solution of this problem would depend upon a concerted attack. Several bills to provide assistance to depressed areas were introduced into the 84th Congress. One bill, bearing administration approval, was introduced b y Senator H . Alexander Smith of N e w Jersey. A bill on this subject was also intro duced b y Senator Pau l H . Douglas of Illinois. Both bills would have provided loans and technical assistance to depressed areas. In addi tion, the Douglas bill would have provided sup plementary compensation to workers w ho had exhausted their unemployment benefit rights, while the latter were undergoing training for new jobs. The Smith bill did not come to the floor of the Senate for debate. In the final days of the 84th Congress, a modified version of the D ou glas • See New England Development Credit Corporations (in Monthly Re view, Federal Reserve Bank of Boston, July 1954 (pp. 1-8), and August 1954 (pp. 1-8); especially, Purpose of Loans). w Rhode Island is a notable exception. Since Providence is the only major labor market area in this State, the State development commission has devoted considerable attention to its redevelopment. ii In 1956, Pennsylvania enacted an Industrial Development Authority Act which provides loan funds to depressed areas in that State, i®Economic Report of the President, January 1956 (p. 61). 35 bill w as passed in the Senate b y a vote of 60 to 30. It did not come to a vote in the House of Representatives, however, and thus did not become law. There is still, however, much sup port for Federal assistance, both in Congress and among various private organizations. In his 1957 Economic Report, President Eisenhower pro posed the establishment of an A rea Assistance A d ministration Program in the Departm ent of Commerce to revitalize areas with long-standing unemployment. Some private organizations, however, including a few which are engaged in development or pro motional activities, have opposed Federal aid to depressed areas. A t a meeting of the N e w England Council devoted to the problem of de pressed areas, held in February 1956, a resolution was passed opposing Federal aid. A n d at the 1956 meeting of the Association of State Planning and Developm ent Agencies, representatives of some N e w England States voiced strong opposition to Federal assistance.1 3 C o n c lu s io n s Local development organizations in N e w E n g land are continuing their efforts to create new jobs for the substantial number of unemployed in depressed areas. B u t because of the improvement in most of these areas during the past 2 years, interest in the problem of area redevelopment has waned outside the affected communities. Past experience suggests, however, that even a relatively mild recession such as that of 1953-54 w ill reveal that much remains to be done before the problem of depressed areas is solved. A n d while the decline of textile employment in N e w England has slowed down, it has not been halted. Periodically, there is an upsurge in unemploy ment in one of the depressed areas as still another mill is closed. There i a strong conviction in some quarters s that the problem of localized unemployment i a s matter of national rather than local concern. And an excellent case has recently been made for spending substantial sums to reemploy displaced workers on the grounds that the savings in un employment compensation would more than offset the direct and social costs involved.1 4 There has been some support for such a program in N e w England; but at the same time, some of the most articulate groups in the region have voiced strong opposition to Federal aid. A Fed eral program of area redevelopment remains a distinct possibility, however, and i enacted will f benefit the region in spite of this opposition. 13 Proceedings, 11th Annual Convention, Association of State Planning and Development Agencies, Boston, 1956 (pp. 30-31). 14 Arnold C. Harberger, The Economics of the President’s Economic Re port, Journal of the American Statistical Association, September 1956 (p. 458). Only those [workers] who managed to accumulate a little property were allowed to vote; and everywhere the brand of inferiority was stamped upon them. W h en the son of a Boston bricklayer was elected to the office of justice of the peace in 1759, the right to the office was attacked on the ground of his low social origins; and his defense was not the dignity of his calling but a reply that the charges were false. — Charles A . and M a ry R . Beard, T h e Rise of A m erican C ivilization, N ew Y o rk , M acm illan C o ., 1927, V ol. I (p. 131). L a b o r T u r n o v e r in T e x t i l e M i l l s With many young workers taking jobs in New England's cotton and synthetic textile mills, m anagem faces ent the challenging task of retaining and training them . L eonard A rnold M a n y i n v e s t i g a t i o n s have been conducted and much has been written in recent years of the plight of N e w E n glan d’s textile industry, its losses, and the impact of these losses on the N e w England economy. The barrage of material calling atten tion to the decline of the industry has emphasized the negative aspects and has overlooked certain positive features. One of these positive features is the fact that younger workers are taking jobs in N e w E n glan d’s textile mills and compose a high proportion of new hires. This fact, combined with the fact that there are a substantial proportion of younger per sons among job applicants tends to indicate the erroneousness of the popular belief that people are not attracted to work in N e w England textile mills. These facts and other data available for the first time are the results of a study b y the Northern Textile Association of labor turnover in N e w England cotton and synthetic textile mills.1 The period selected for study was the first half of 1953— a period of stability at a relatively high level in both the N e w England cotton and synthetic textile industry and the N e w England economy generally. It is, therefore, a particularly useful period for the purpose of studying labor turnover. In brief, the study showed that although a m ajority of the work force in N e w England cotton and synthetic textile mills was 40 years of age or over, with an average age of 43, employees with less than a year’s service had an average age of 33, and 48 percent of them were under 30. In addi tion, 44 percent of job applicants were also under The separation rate in N e w England cotton and synthetic textile mills was significantly lower than in all-manufacturing industries in various local labor markets and was also below the average for the national cotton and synthetic textile industry. W h ile a high proportion of total separations for the N e w England industry was composed of quits, the m ajority of persons quitting were employees with less than a year’s service who were apparently shopping for what would be their permanent jobs. The existence of this situation, however, presents a very real challenge to textile mill managements. Time, effort, and study should be devoted to solv ing the problem of retaining the younger workers who comprise such a large proportion of the new employees. C o m p o s itio n o f th e W o r k F o r c e The work force of the N e w England cotton and synthetic textile industry was almost evenly divided between men and women, with men com prising 52 percent of all production and related workers. T he average age of men was 43.6 years and of women, 42.7 years. The proportions of the work force at various age levels were as follow s: Percentageofthe workforce U nder 30 years___________________________________________ 28 Under 40 years___________________________________________ 40 years and o v e r________________________________________ 40 60 45 years and o v er________________________________________ 48 50 years and o v e r________________________________________ 36 1 The sample consisted of 20 cotton and synthetic textile mills, employing 15,429 production and related workers, selected to be representative of the New England industry’s locality, product, and size of mill. 30 years. 19 U nder 35 years___________________________________________ (36) 37 The high proportion of older workers in the work force poses some rather specialized problems for N e w England's textile mills. W h a t impact does an aging work force have on productivity and the competitive position of the N e w England mills? D o the factors of experience and skill offset or even outweigh the physical advantages of youth? Are the advantages of stability and m aturity— charac teristics of an older work force— an offset to the greater responsiveness to change usually consid ered more typical of younger workers? These are just some of the m any questions which arise from the fact that almost half of the workers in N e w England cotton and synthetic textile mills are 45 years of age and over. In any event, a greater leavening of younger workers would be desirable if just from the point of view of replacing persons on the verge of retirement age. The age distribution of employees in each of nine m ajor departments was quite similar to the age distribution of the employees in all the plants combined. W hile the proportion of employees in various age brackets differed from one depart ment to another, no particular concentration of either younger or older workers was found in any one department. Com pared with the 60 percent of all workers who were 40 years of age and over, the proportions in this age group in the various departments ranged from 55.5 percent in the clothroom to 66.5 percent in the carding department. W ith respect to younger workers, 9.4 percent of all workers were under 25; departmental ratios ranged from 8.3 percent in the clothroom and the carding department to 12.9 percent in the yarn preparation department. Similar situations were found with respect to other age brackets. A distribution of the work force in nine m ajor departments shows that the largest num ber of workers, b y far, was employed in the weaving department, as shown in the following tabulation. The sex composition of the employees within each department indicates a matching of the different work skills and experience, as well as physical 2 United States data from monthly turnover series published by the Bureau of Labor Statistics. * Unpublished study conducted by the Northern Textile Association from data which were available from the State employment security agencies. Although the 6 areas studied had moderate or substantial labor surpluses in the spring of 1953, they had experienced a gradual buildup in employment during the previous year, and two of the areas had been shifted in the direc tion of a tighter labor market situation in the first half of 1953. * These rates apply only to the mills included in the sample and, therefore, do not measure any separations which may have resulted from mill closings. qualifications, with job requirements in the various departments. Percentage distribution partmental employmentof de oftotal em Percentage distribution bysex ployment by Men W omen department Department C a r d i n g _____ _ Spinning ______ _ _ _ __ 22 62 42 Y a rn p reparation. _ __ Filling and w inding___ 6 23 38 58 77 4 30 70 T w isting 2 41 59 2 95 5 3 58 63 42 37 9 30 70 _ _ ______ _ Slashing__________ ______ 15 D raw ing-in and ty in g in _ ___ ______ W ea vin g C loth room . _ _ ___ _ _ 37 T o ta l S e p a r a tio n s The average monthly separation rate of the N e w England cotton and synthetic textile indus try during the first half of 1953 was 33 per 1,000 employees, or 6 percent less than the separation rate of 35 per 1,000 employees in the national cotton and synthetic textile industry during the same period.2 M oreover, it was, as shown in the following tabulation, consistently below the sepa ration rates of all manufacturing industries in certain local labor market areas in the first half of 1953.3 Separation rate per 1,000 employees for manufacturing A verage, all areas_________________________________ F all R iver, M a s s __________________________________ 50 42 Low ell, M a s s ______________________________________ 72 M anchester, N . H ________________________________ 39 N ew B edford, M a ss______________________________ Providence, R . I __________________________________ 49 62 S p ringfield-H olyoke, M a ss______________________ 36 D urin g the period when the N e w England cotton and synthetic textile separation rate was 33 per 1.00 0 employees, the accession rate was 28 per 1.000 employees, with a consequent net loss in the industry's total work force.4 In the same period, the accession rate in the national industry was identical with the separation rate— 35 per 1.000 employees— indicating stable employment. Also, quits accounted for a smaller proportion of total separations in the national cotton and syn thetic textile industry, 63 percent, than in the N e w England mills, 73 percent. T o complete the analysis, 12 percent of the separations in the N e w England industry were discharges; 9 percent were layoffs; 3 percent were military separations; and 3 percent were retirements. 38 Q u it R a t e s By Department. W ith a quit rate of 24 per 1,000 employees for all employees in all plants studied, the rates in individual departments varied widely— from 10 in the drawing-in and tying-in department to 34 in the twisting department, as shown in the following tabulation: Quit ratesper quits 1,000employees Percent oftotal Department T o ta l em ployees, all plants 24 25 17. 1 19 Y a r n preparation Filling and w inding 17 22 19. 6 4. 4 T w istin g _ 34 N e w E m p lo y e e s 100. 0 C ard in g___ _____ __ Spin n in g__________ men. O f the men who quit, 77 percent had less than 1 year of service, while 65 percent of the women who quit their jobs were in this category. The proportion of employees who quit after 3 years of work was considerably higher among women than among men— 23 percent and 13 percent, respectively. Slashing _ _ _ _ _ _ 12 Clothroom _ __ _ _ __ _________ 1. 3 10 D raw in g-in and tying-in W e a v in g . 3. 5 3. 1 25 1. 4 44. 0 13 5. 6 By Shift. The largest concentration of quits was from the second shift. T he high proportion of quits from that shift— 42.6 percent of the total— is accounted for principally b y two factors: (1) Th e second shift is generally found to be the most undesirable from a fam ily and social point of view ; and (2) no premium pay was provided for secondshift work, but a 7-cent hourly premium was paid to workers on the third shift. Since it is generally thought that first-shift work is more desirable than employment on the third shift, it was surprising to find that the pro portion of total quits from the first shift was almost as high as from the third shift, 28.3 and 29.1 percent, respectively. By Age. The largest cluster of quits was composed of employees in the age group under 30 (45 per cent of total quits). A s would be expected, the percentage of total quits b y age groups declined as the age increased. By Sex and Length of Service. A s is the case in most industries, the m ajority of quits were b y new em ployees: of all persons who quit their mill jobs, 72 percent had less than 1 year of service. Seventeen percent of the quits were b y employees with more than 3 years of service, while only 11 percent were employees with from 1 to 3 years of employment. Although the w ork force was almost evenly divided between men and women, as previously indicated, 62 percent of total quits were made b y B y far the most interesting findings with respect to the new employees, i. e., workers in the employ of a mill for less than a year, were that a large number of them were young and a relatively high proportion had no previous textile experience. O f the 2,948 employees hired during the period studied, 48 percent were under 30 years of age and 30 percent were under 25 years. O f new male employees, 55 percent were below age 30 and 37 percent were under 25. In contrast, only 38 per cent of new female employees were below 30 years and 21 percent were below 25. T he fairly even balance between men and women in mill employ ment was not found among new hires; men com prised 60 percent of the hires. A s would be expected, with the high proportion of quits from the second shift, a high proportion (46 percent) of new employees were hired as re placements for that shift. The proportion of hires exceeded that of quits for both the second and third shifts, with 31 percent of new hires going on the third shift. However, replacements on the first shift— 24 percent of new hires— were below the quit level for that shift. A comparison of new hires b y departments shows that most departments had about the same propor tion of total hires and total quits. The two m ajor exceptions were the spinning department, where hires were greater (22 percent of hires and 20 per cent of quits), and the weaving department, where the reverse was true (44 percent of quits as against 39 percent of hires). W ith respect to the work experience of new employees, 58 percent had previous textile experi ence, 24 percent had other manufacturing experi ence, and 18 percent had no previous m anufactur ing experience of any kind. The proportion of new employees with previous textile experience was much higher among women (71 percent) than among men (49 percent). 39 In this connection, information concerning train ing programs was requested. I t appeared that specific well-formulated training programs were carried on b y only a minority of the mills, and the information received was inadequate. J o b A p p l ic a n t s M o re than 4,000 job applicants were studied to determine the age, sex, and previous experience of potential cotton and synthetic textile employees. The proportion of younger applicants was high, with 44 percent under 30 years of age and 30 per cent below the age of 25. M o re women applied for work than men. W h ile 53 percent of total applicants were women, they represented only 40 percent of the new hires. Lik e the new employees, less than half (44 per cent) of the job applicants had had no previous textile experience. R e a s o n s fo r Q u its It was not possible to gather adequate data permitting valid observations concerning the reasons w h y employees voluntarily left the employ of the mills covered in this study. Although exit interviews were conducted b y 5 mills employing 22 percent of the workers, actual exit interviews were held with only 18 percent of the total number of quits. The largest proportion of workers interviewed (42 percent of the 448 interviewed) gave no reason for quitting. P r in c ip a l C o n c l u s i o n s Perhaps the most significant conclusion which can be draw n from this study of labor turnover is that the age levels of new employees and appli cants for work tend to disprove the popular belief that younger workers are not attracted to the N e w England textile industry. The extremely high proportion of persons quitting their jobs after less than 1 year of service, however, indicates that mill management must meet the challenge of retaining their younger workers. Moreover, the lack of adequate data on reasons for quits suggests that management has not been particularly concerned with ascertaining w h y workers leave the employ of the mills. This is an area which deserves more thought and con sideration than it evidently has received. Finally, the scarcity of training program s at the time of the study can be attributed in part to the availability of experienced workers and in some measure to management’s lack of interest in developing such programs. T h e fairly large pro portions of new employees and of applicants for work without either previous textile experience or manufacturing experience of any kind apparently focused management attention on the increasing need for training programs in N e w England cotton and synthetic textile mills. It is encouraging to note that evidence gathered since the date of the study shows that m any additional training pro grams have been inaugurated and mill m anage ments appear to be cognizant of this need. [A t a meeting in 1846 of the N e w England W orkingm en’s Association in Peterboro, N . H ., a resolution was adopted condemning work before sunrise. The resolution read] “ Resolved, T h at although the evening and the morning is spoken of in the Scripture, yet in that book no mention is m ade of an eve ning in the morning. W e therefore conclude that the practice of lighting up our factories in the morning, and thereby m aking two evenings in every twenty-four hours, is not only oppressive but unscriptural.” — George E . M cN e ill, T h e L ab or M o v e m e n t, B o ston , A . M . Bridgm an & C o ., 1887 (p. 107). C o lle c tiv e B a r g a in in g in th e and C o m p e titiv e C o s t S h o e In d u s trg Collective bargaining in N e w England shoe factories has adapted reasonably well in the postwar period to the highly competitive E . R . L iv e r n a s h N e w E n g l a n d has been maintaining its share in national shoe production since 1925, except during the years 1947-49, after m any years of severe decline following the C ivil W a r .1 And, since 1953, it has shown evidence of enlarging its share. W ithin the region, production in M ain e has in creased in importance relative to Massachusetts and N e w Hampshire, but this is only a minor qualification with respect to an encouraging competitive performance b y all three States. Looking more closely at the N e w England production record,2 we find the following: In the years 1925-29, inclusive, census d a t a 3 showed an average share of total national production of 33.8 percent. There was a decline in 1947, 1948, and 1949. Th e years 1950-53, inclusive, again averaged 33.8 percent. (A revision of the sample in 1950 precludes close comparison with the years of decline, but probably improves the comparison with the predepression base.) In 1954, 1955, and the first 8 months of 1956, the average share has been 37.3 percent— higher than in any of the years of the period since 1924. C an this production record be related in any significant w a y to the results of collective bargain ing in the postwar years? This is not an easy question to which dogmatic answers m ay be found. This much m ay be said: Assisted b y the Federal minimum wage, restraint in negotiating general wage increases, compared with most m anufactur ing industries, seems to have held the increase in earnings in unionized plants to about the same and partially organized footwear industry. amount as the average for the industry as a whole. The presumed differential between union and non union earnings does not appear to have increased. M oreover, some regional earnings differentials, un favorable to N e w England, appear to have nar rowed. This m ay in part be the result of collective bargaining, although data demonstrating the im pact of bargaining are not available. W a g e and earnings changes, both general and regional, affect the competitive union-nonunion situation, of course, but do not go to its heart.4 W hether union plants frequently have a serious labor-cost disadvantage remains an unanswered question. In a piece-rate industry, high average earnings do not necessarily indicate high labor cost. Generally, the traditional shoe centers, including those in N e w England, have relatively high earn ings and are heavily unionized, and manufacturers in these centers appear to feel that they have a dis advantageous labor-cost position. Union spokes men can reply, however, that if there were a laborcost disadvantage equal to the earnings differ ential, these shoe centers would have long since disappeared. 1 The N ew England Economy, A Report to the President Transm itting a Study In itia te d by the U . S. Council of Economic Advisers and Prepared by its Com m ittee on the N ew England Econom y, July 1951, W ashington, 1951 (pp. 173-183). The Federal Reserve B ank of Boston, in cooperation w ith the N ew Eng land Shoe and Leather Association, has made several studies of N ew Eng land's share. See M o n th ly Review , Federal Reserve B ank of Boston, Novem ber 1948, October 1950, and Novem ber 1953. * Facts for In dustry: Shoes and Slippers, Series M 68A (m onthly reports on o u tp u t), U . S. Bureau of the Census. ^ Th ey are also of interest w ith respect to N ew England’s production record, though they by no means explain th a t performance. 2 41 The Importance of Labor Cost in Competition L a b o r cost is of crucial importance in the shoe manufacturing industry. M arketing channels, market analysis and finesse, and product competi tion in all its varied aspects are also of great importance; their effects on business success divide firms into dynamically changing groups. B u t these phases of competition are bounded b y and im mersed into cost competition. The shoe industry meets the ordinary criteria associated with a highly competitive industry. W ithout delving into statistical description, the number of firms is large, the average firm is small in size, the degree of concentration of production in larger firms does not insulate them from com petition with each other and with smaller firms, and entry to and exit from the industry are rela tively easy. Production is widely dispersed geo graphically, partly in response to the search for low labor costs. Internal Revenue Service figures for the industry indicate that, in 1929, 711 estab lishments showed gains and 547 reported losses; in 1932, 298 reported gains and 829 losses; in 1946, 1,029 showed gains and 296 losses; and in 1950, 673 were profitable and 344 were not.5 Price competition in the shoe industry is keen though difficult to measure. Substantial quanti ties of shoes are bought on very detailed specifica tions, with firms gaining or losing business because of small differences in cost. W hile prices at retail appear orderly, with fairly commonly accepted price lines and reasonably parallel movement of these lines, there is great underlying change. Competition intensifies as marketing opportunities appear to shift among price lines. A n indication of this change is the greater variation in average factory price compared with a price index based on a fixed product composition. I f average fac tory value moves sharply within a few months, the probability is that shoes are being repriced through upgrading or downgrading among price lines rather than that there is a pure change in product mix. A t all times there is strong compe tition to produce a better shoe at a given price. s These figures, along w ith others dem onstrating the general description in the paragraph, m ay be found in Facts and Figures on Footwear, 10th E d itio n , N ew Y o rk, N ational Shoe M anufacturers Association, 1956. « George P . Shultz, in Pressures on Wage Decisions (N ew Y o rk, The Tech nology Press of the Massachusetts In stitu te of Technology and John W iley Sons, In c ., 1951), has ably demonstrated this basic po int, particularly in his discussion of the Brockton grade system. & Accepting as fact a high degree of price and product competition, there remains the question as to w h y labor cost is of particular significance. W hile the shoe industry’s proportion of labor cost to manufacturing selling price (about 25 percent) is not low, neither is it outstandingly high in com parison with other manufacturing industries. The answer to our query is to be found, first, in the absence of technological competition. Tech nology is almost identical from factory to factory for similar constructions and types of shoes. Also, technology is neither controlled nor developed b y shoe manufacturers. M eaningful competitive ad vantage of even a temporary nature cannot be obtained b y superior basic methods and processes. This is in sharp contrast to m any industries where the technology of product and process is the m ajor focus of competition. In the second place, the price of the basic raw material, leather, derives from an auction market in hides and, subject to modest qualification for quantity purchasing and speculative intuition, does not provide a competitive advantage for par ticular firms. I f the qualification were of particu lar importance, it is most doubtful that the figures on concentration for the largest 50 firms (or for smaller numbers) would show, as they do, that the proportion of production of the larger firms de clined from 1939 to 1954. T w o m ajor areas thus remain as possible sources of cost advantage; these are labor cost and m er chandising and marketing. Superior performance in the latter area, as for example anticipation of shifts in the market or in consumer tastes, m ay in directly lower overhead per pair b y so broadening the sales base as to permit better organization and consequently increased efficiency of produc tion. Low er labor cost can yield a similar advantage and is thus a strategic competitive factor. A s shoe manufacturing is a piece-rate industry, labor cost is the sum of a list of piece prices plus the cost of “ fringe” benefits. Competition in selling price (and product) becomes and is competition in piece prices. Collective bargaining in this decentralized industry of m any firms, only partially organized, has never been able to “ remove wages from com petition.” Rather, collective bargaining has its prim ary focus upon labor cost within this com petitive struggle for favorable price position.6 42 Union-Nonunion Changes in Earnings Level The United Shoe W orkers (form erly C IO ), the Boot and Shoe W orkers (formerly A F L ), and independent unions represent little more than half of the industry’s production workers. The 1953 wage survey of the industry b y the Bureau of L a b o r Statistics of the U . S. Departm ent of L a b o r estimated that 50 to 60 percent of the workers were covered b y labor-management agree ments.7 Clearly a most substantial segment of the industry is not organized, including some large multiplant firms that are either entirely or partially unorganized. Still, it is not appropriate to describe the industry in very m any regions as “ nonunion,” although in the South, the Border States, and Pennsylvania, it is heavily nonunion. B u t the W est,8 which in the period of N e w E n glan d’s heavy decline (before 1925) was poorly organized, is now probably almost as heavily organized as N e w England. Unionism, while weak in terms of potential membership, has had a more pervasive influence upon wage movements in W o rld W a r I I and the postwar period than in the prewar era. The shoe industry is a low-wage industry and, as compared with all-manufacturing, has lost ground in the postwar period. In 1946, average hourly earnings in the shoe industry were 14 percent below the average in manufacturing ($0.93 compared with $1.08), according to the hours and earnings series of the Bureau of L a b o r Statistics. B y 1949, with wartime wage controls lifted and the labor market not so tight, earnings in the industry ($1.10) were 21 percent below average earnings in manufacturing ($1.40), and b y 1955, this percentage had grown to 29 ($1.34 compared with $1.88). The total increase in average hourly earnings from 1946 to 1955 was substantially less in the shoe industry than in all-manufacturing— 41 cents compared with 80, or, in relative terms, 44 and 74 percent, re spectively. Shoe manufacturing has thus been one of the minimum-increase manufacturing industries, lagging even in percentage terms in a period when most relative wage differentials were narrowing. T o estimate the typical impact upon average earnings of general wage increases in union plants, two wage chronologies published b y the Bureau of L a b o r Statistics— for Massachusetts Shoe M anufacturing and for the International Shoe C o.9 can be compared with the average — earnings data. W h ile the general wage changes listed in the chronologies are not directly com pa rable to changes in gross average earnings, such a comparison appears to be generally valid when the two m ajor areas of noncomparability are considered. First, the general wage changes do not include adjustments in individual rates such as promotions and changes in individual job rates that do not have an immediate or noticeable effect on the average wage level and thus would not necessarily coincide with the change in straighttime average hourly earnings even in the situations covered. In the footwear industry, changes in individual piece rates could have an appreciable effect over a num ber of years. The other m ajor difference stems from the fact that average earn ings include premium payments for overtime, shift differentials, sick leave, holidays, vacations, and production bonuses, which are, of course, excluded from the general wage change data. A s rough guides to the effect of these inclusions on the average earnings figures, it should be noted that in recent years average weekly hours of w ork have not exceeded 38 and late-shift w ork has not been common. W ith respect to paid holidays and vacations, only those occuring in the week ending nearest the 15th of the month would be included, since that is the date of refer ence for the earnings data. General wage changes under the International Shoe C o .’s contracts with the B oot and Shoe W orkers and the United Shoe W orkers resulted in an increase of approxim ately 59 cents per hour from the end of W o rld W a r I I through October 1955, when the most recent w age adjustment be came effective.1 W h en the Massachusetts wage 0 chronology, based on agreements between the U n ited Shoe W orkers and a num ber of shoe com panies in the L y n n -H a v e rh ill-B o sto n area, is updated through January 1956, the date of the last general w age adjustment, the increase comes 7 See Wage Structure: Footwear, M arch 1953, B LS R eport 46,1953 (p. 2). 8 Loose N ew England shoe parlance for M issouri, In d ian a, Ohio, Illin o is , and Wisconsin. 9 Wage Chronology N o. 20 and Supplem ent 1: Massachusetts Shoe M an u facturing, M o n th ly Labor Review , February 1952 (p . 169) and July 1953 (p. 751): and Wage Chronology N o. 25 and Supplem ent 1: In ternatio nal Shoe C o., M o n th ly Labor R eview , July 1952 (p. 30) and A p ril 1953 (p . 403). 1 To the general wage changes shown in the published chronology, the 8 author has added his estim ate of the cents-per-hour equivalent of the approx im ately 5-peroent increase effective October 3, 1955. 43 to 58 cents per hour.1 (In Brockton, a second im 1 portant Massachusetts shoe center, a rough per sonal estimate places the comparable increase at about 55 cents per hour.) A rough estimate of changes in earnings in the nonunion segment of the industry can be made b y comparing general wage changes in union plants with the 63-cent increase in the average earnings series for the comparable period of September 1945 to M arch 1956. In making such a compari son, which is of course subject to the qualifications previously mentioned, one must also assume that the average earnings data are based on reports from a sample of firms that is representative of the extent of unionization in the industry as a whole. W h ile no information can be offered to validate this assumption, the fact that the sample firms employ about half of the workers in the industry suggests that it is reasonable. Thus, it can be said that nonunion earnings appear to have in creased b y almost the same amount as in union plants. B u t recognition must also be given to the effects of the two changes in the Federal mini mum wage which took place during the period covered. The minimum wage under the F air L a b o r Stand ards A ct was increased to 75 cents in January 1950, and average hourly earnings in the shoe industry increased between 2 and 3 cents per hour from 4 months prior to the change to 4 months after the change.1 General increases were not 2 given during this period. A comparison of earn ings in 12 important shoe-producing States for the same period shows an increase of about 5 cents per hour in the lower paying States and about 2 cents in the higher paying States. Despite some deviations, this generalization appears reasonably sound. In M arch 1956, the $1 Federal minimum became effective. I t is not desirable to use a 4-month before-and-after comparison in this situation, as late 1955, early 1956 was a period of general in creases. Union firms were more willing to nego tiate general increases in late 1955 and early 1956 because of the probability that the higher mini mum would bring pay increases to a substantial 1 T o the published chronology, the author has added the increase amount* 1 ing to 5 percent of gross w eekly earnings effective in January 1956, w ith a personal estim ate of its cents-per-hour equivalent. 1 Figures for the Federal m inim um -wage comparisons are the Bureau of 2 Labor Statistics data on gross average hourly earnings. 1 For a discussion of the effects of the $1 m inim um on wages in the southern 8 footwear industry, see p. 323 of this issue. number of workers in the industry,1 and in addi 3 tion, some important nonunion firms announced general wage increases in advance of negotiations in unionized firms, partly in anticipation of the higher minimum. Earnings in the industry were quite stable at $1.34 to $1.35 for the period A p ril to October, 1955, and then increased gradually to $1.41 in F ebruary 1956. This figure increased to $1.45 in M arch and maintained this level until August. The only 1 of the 12 States which did not reflect this M arch increase had increased very substantially from Decem ber to January. The pattern of larger advances in low-paying States than in the United States average was a little less marked than in the case of the 75-cent minimum. A fair inference seems to be that the Federal minimum wage increased earnings about 4 cents per hour, with the earlier advances attributable to general increases. These estimates indicate that the Federal mini mum wage has been important in the shoe in dustry. The 2 increases have contributed at least 5 cents per hour to average earnings in the industry and more probably 7 cents. N o w a rough appraisal of the effects of general wage changes on average hourly earnings m ay be made. Deduction of the earnings increase that m ay be attributed to Federal minimum-wage changes from the total increase of 63 cents that occurred from September 1945 to M arch 1956 leaves an amount that is within the range of the general increases in union firms of 55 to 59 cents per hour shown b y the wage chronologies. It would appear, therefore, that nonunion general increases were not too different in average magni tude from the increases in union centers. Nothing approaching industry bargaining or precise wage patterns exists in the shoe industry, but the International Shoe Co., the largest pro ducer, might be regarded as something of a bench mark. From the unions’ point of view, Interna tional Shoe has no doubt been a hard bargainer well aware of the partial organization of the industry. N e w England firms, bargaining from a high earnings base, have about matched Inter national Shoe and have held a constant relative position. T he effect of these facts, plus the union awareness of the competitive character of the industry, has produced no general wage increase in various years when such increases were quite prevalent within manufacturing. The union sec- 44 tor of the shoe industry has negotiated general increases only when there was a good chance that nonunion firms would follow. This restraint, coupled with the effects of changes in the Federal minimum wage, appears to have held to a min imum any union-nonunion earnings differential. Averagehourly Increase earningsarch December M Centsper Percent 1946^ 1956 hour _____ State Region 1 Straight-time hourlyearnings Increase October M Centsper Percent arch hour 1945 1963 _____ $0. 83 $1. 31 $0. 4 8 58 M id d le A tla n tic __________ . 95 1. 37 . 42 44 N e w E n g la n d _____________ G reat L a k e s______________ . 93 . 72 1. 37 1 .2 9 . 44 .5 7 47 79 Border S tates_____________ M id d le W e s t______________ . 69 .6 6 1. 0 8 1 .2 4 . 39 .5 8 57 88 S ou th ea st_________________ .6 5 1. .5 4 83 1 D ata for Pacific and Southwest regions are om itted because they accounted for only 3.2 percent of em ploym ent in the industry a t the tim e of the 1953 survey. The regions for which separate data are presented include: Jersey, N ew Y o rk , and Pennsylvania; Con necticut, M aine, Massachusetts, N ew H am pshire, Rhode Island, and Ver m ont; niino is, In diana, M ichigan, M innesota, Ohio, and W isconsin; D elaw are, D is tric t of C olum bia, K entucky, M arylan d , V irg in ia , and W est V irginia; Kansas, M is souri, N ebraska, N o rth D akota, and South D akota; and A la bam a, Florida, Georgia, M ississippi, N o rth C arolina, South C arolina, and Tennessee. lantic-New GreatBorder States— Lakes— Middle New England— At Middle W lewo., est— Southeast— T o reflect some of the differences within regions and to give a later terminal comparison, B L S data on gross average hourly earnings b y States are shown in the following tabulation for Decem ber 1946 and M arch 1956.1 Again, it should be noted 6 that the gross earnings figures include payments for overtime, shift differentials, etc., which are excluded from the regional wage data just pre sented. 1 Wage Structure: Footw ear, 1945, Series 2, N o. 23; and Wage Structure: 4 Footwear, M arch 1953, B LS Report N o. 46. » Excludes prem ium pay for overtim e and shift differentials. 1 December 1946 is the earliest m onth for which State data are available on 6 a basis fa irly comparable w ith those for M arch 1956, which was chosen as the term inal m onth because the $1 m inim um w ent in to effect then. $0. 44 1. 55 1. 54 . 36 30 . 44 40 .9 2 1. 50 . 58 63 .9 5 .9 4 1. 45 . 50 53 1. 45 . 51 54 .9 4 1. 44 . 50 53 Indiana __ M issouri_____ 1. 42 1. 39 1. 28 . 55 . 49 63 54 M a r y la n d . _ _ .8 7 .9 0 .7 9 P ennsylvania .8 5 1. 26 . 49 . 41 48 .7 5 1. 21 . 46 61 N ew Y o r k . _ _ N ew H am pshire W iscon sin ___ Illin o is. __ V irginia____ ___ _ 39 62 i Because of some changes in sample composition in this industry, data for December 1946 for a few States are not exactly comparable w ith the M arch 1956 averages. _____ U nited S tates_____________ 19 $1. 56 1 .1 9 1. 10 M a i n e ___ Th e best data on regional wage levels in the industry are two B L S wage structure surveys, one in 1945 and the other in 1953.1 Comparison of 4 these two surveys shows the following changes in straight-time average hourly earnings: 1 5 $1. 12 O hio____ Regional Earnings Levels _ __ M assach u setts. These regional and State data on earnings in the shoe industry show a reduction in differentials that is favorable for N e w England. This is particularly true in percentage terms, which seems to be the most valid indicator of probable effect upon labor cost. O f course, the regions have their internal variations; for example, Pennsylvania lowers the M iddle Atlantic average, and M aine lowers the N e w England average. B u t in the early postwar years, N e w England (particularly Massachusetts and N e w Ham pshire) and the M iddle Atlantic States (particularly N e w Y o rk ) were well above the W est and South. In the more recent years, significant improvement in N e w E n glan d’s relative position, as measured by these indicators of labor cost, is indicated with respect to the W est, less with respect to m ajor southern competition. Several reasons for the improvement can be advanced. The impact of the Federal minimum wage has had both a direct and indirect influence. The spreading union organization is im portant; particular areas in which wages are lowest are those remaining weakly organized. G row ing in dustrialization in some areas where unionization, though stronger, is of relatively recent origin m ay also have helped to narrow certain differentials in this low-wage industry, but this is a limited conjecture. 45 Conclusions I f labor cost data were available, a more definitive analysis might be undertaken. I f em ployment, hours worked, and average earnings data were broken down into union and nonunion categories b y States and types of shoes, a much more satisfying description would be possible. B u t even from the data available, two tentative conclusions m ay be made. Collective bargaining has adapted reasonably well to the highly competitive and partially or ganized character of the industry. If, in the period following W o rld W a r I I , union demands had been more forceful and effective, N e w E n g land's production record might easily have been less favorable. From a union point of view, this degree of restraint has no doubt been most frus trating. W hen the union has been faced with the task of balancing a management bargaining position that higher wages might bring reduced employment against the desires of its members for a wage increase, the preservation of union jobs must have appeared to be unreal and specu lative. From a management point of view, it has been a thankless task to be a tough bargainer in order to retain or regain competitive position. In the second place, some regional earnings differentials appear to have narrowed since the end of W o rld W a r I I . Prosperity, particularly in the immediate postwar period, the two in creases in the Federal minimum wage, and the spread of unionism m ay all have contributed to this end. However, growth in the industry continues to favor low-earnings States where organization has had limited success; some signifi cant firms in N e w England have ceased operations. Competitive difficulties remain, bu t collective bargaining in the postwar period does not appear to have intensified the problems. [The Knights of St. Crispin were founded in 1867 b y N ew ell Daniels, a boot-treer of M ilford, M ass. Thousands of N e w England shoe workers in Lynn, Weym outh, Brockton, and other N e w England towns flocked to this craft organization. Protection of the craft was one of its basic elements. The constitution included a regulation that] “ no member of this Order shall teach, or aid in teaching, any part or parts of boot or shoe-making unless the lodge shall give permission b y a three-fourths vote of those present . . . Provided, this article shall not be so construed as to prevent a father from teaching his own son." — George E . M cN e ill, T h e L abor 1887 (p. 200). M o v e m e n t, B oston, A . M . Bridgm an & C o ., New England9 skilled workforce has joined with man s agement talent and engineering ability to establish a new high-wage in d u s try w ith a promising future. The Growth of the A ircra ft Industry D a v id P in s k y i r c r a f t is not the leading manufacturing em ployer in N e w England. M achinery, textiles, apparel, leather, electrical machinery, and fabri cated metals all exceed it in employment. W h a t then is its peculiar importance to the area? First is its potential. Aircraft is a new and far from mature industry. I t is basic to national de fense, and its importance and use in this respect are likely to grow. B u t in the commercial field, its growth potential is much greater. E ven today more passengers cross the ocean b y aircraft than b y surface ships. M o re coast-to-coast travel is b y air than b y surface vehicles. F or short inter city travel, the helicopter m ay become as common as buses and trains in the not too distant future; thus, it is important that N e w England maintain its basic foothold in the industry. Second, during the past decade aircraft em ployment has been advancing at a time when employment in some leading N e w England in dustries has been stable or declining. This growth has enabled the area to maintain a skilled work force, an important key to its future growth. Third, aircraft is a relatively high-paying in dustry. The level of wages paid to N e w England aircraft workers has been a significant factor in maintaining its economy at a high level. A Development of N e w England Aircraft Industry In 1925, a young executive from Ohio in search of a location and money to realize his idea for an air-cooled airplane engine turned to N e w England, where craftsmen of all sorts had their shops. Journeying to H artford, he concluded an agree ment with Pratt & W hitney, producer of precision tools and lathes, whereby that firm furnished him capital and working space. T his young executive was Frederick B . Rentschler. The company he founded, first known as P ratt & W h itn ey Aircraft, eventually became the nucleus of the present United Aircraft Corp. Its engines have been highly successful from the start. T h e y power about 75 percent of all the commercial aircraft outside of Russia flying today. W ith its licensees, P ratt & W h itn ey produced about 50 percent of all aircraft engines used b y the combined A ir Corps and N a v y air arm in W o rld W a r I I . A large proportion of today’s modern jet aircraft is powered b y P ratt & W h itney Aircraft gas turbines. Through his preeminence in aircraft, Rentschler soon attracted other leaders in the field. T h ey included Igor Sikorsky and Chance Vought, both brilliant engineers and pioneer pilots, and W illiam Boeing, financier and executive, pioneer pilot, and devoted aviation enthusiast. United Aircraft, formed in 1928 under the leadership of Rentschler and these 3 men, gave additional know -how and financing to 3 then small aircraft firms. United Aircraft established a plant in B ridge port for one of these, Sikorsky Aircraft, which was producing amphibious planes on L o n g Island. Bridgeport was selected because a seaport for the flying boats could be built there and the area could supply skilled workers. The plant has discon tinued production of its flying boats and is now the w orld’s leading producer of helicopters. 47 The Chance Vought airplane division of United Aircraft was moved from the environs of N e w Y o rk C ity to East H artford and later to Stratford, Conn., largely because United Aircraft had found a good supply of trained workmen in both areas, which were nearer the parent corporation. This division was also highly successful and made a m ajor contribution to the W o rld W a r I I effort with the production of its Corsair fighter planes. After the war, a number of factors caused the division to seek a new location. Principally, the speed of their planes had become too great for testing over the congested metropolitan area around Bridgeport, and the N a v y was concerned over the concentration of fighter-plane production in the area with other m ajor producers, Republic and Grumman, on Lo n g Island. A s a result, the division was moved to Texas where the flat, unpopulated areas and arid climate better suited jet testing. In 1954, Chance Vought was sepa rated from United Aircraft. Th e combination of engine and propeller pro duction was a natural one, and in 1928, Ham ilton Standard Propeller, then located in M ilw aukee and Pittsburgh, became a part of United Aircraft and moved to the site of the engine plant in East H artford. Ham ilton propellers today are stand ard equipment on more than 90 percent of all commercial airliners flying in the Western W orld. W ith the change from piston engines to jets, the company in 1952 built a new plant to make accessories for jet planes and engines, at the large B radley Field airport in W indsor Locks, 18 miles aw ay from the Pratt & W hitney engine plant in East Hartford. The other large airplane plant in Connecticut is Avco M anufacturing C orp.’s Lycom ing plant in Stratford, which manufactures airplane and heli copter engines. This plant was established there because the removal of Chance Vought to Texas had left available a good supply of skilled workers, and the vacated plant itself was ideally suited for airplane engine production. General Electric Co. has a large plant producing jet engines and accessories at Lynn, M ass. D r. Sanford Moss, working for General Electric in Lynn, pioneered the development of the turbosupercharger in the 1920’s. T he plant expanded greatly during W o rld W a r I I. Additional research developed the jet engines it is now producing. Aircraft and Parts Employment as a Percent of Manu facturing Employment in New England, 1942-56 Percent 1942 ’43 *44 ’45 ’46 ’47 ’48 ’49 ’50 ’5 *52 ’53 ’54 ’55 ’56 1 UITDSAE DPRMN O LBR NE TTS EAT ET F AO B R A OF LA O STATISTIC UEU BR S Suc: Cmile b DP s yfr m a s plie b Te o r e o p d y . ink o d te up d y h Br o o LbrS tis sadCo ea gS te ueu f a o ta tic n o pr tin ta Ae c s gnie. A smaller but promising company is K am an Helicopter in Bloomfield, Conn., just outside of Hartford. Charles Kam an, its founder, was an engineer at Ham ilton Standard during the war. H e conceived the idea of a helicopter having twin rotors intermeshed like an eggbeater and spinning in opposite directions to eliminate the torque resulting from use of a single rotor. B u t recital of the rise of these large firms tells only a part of the N e w England aircraft story. Because of the large amounts of precision parts required, aircraft plants traditionally contract out considerable work. The availability of m any small precision metal shops in N e w England attracted the large producers in the first place. F or example, United Aircraft alone purchases products from 2,000 suppliers in N e w England, employing an estimated 10,000 workers. The standard airframe is not made in N e w E n g land. The airplane engine, propellers, and the helicopter are the three principal products. M a n y N e w England plants contribute other parts or 48 subcontract work to aircraft manufacturers. Prin cipal among these are instruments and communi cation equipment. Employment. Aircraft employment in N e w E n g land hit an alltime peak of 85,000 in February 1944.1 In 1938, employment totaled approxi mately 7,300. In June 1940, with fighting already started in Europe, aircraft employment reached about 14,700. B y the time the bombs fell on Pearl H a rb o r in Decem ber 1941, the number of workers approximated 37,000. The end of W o rld W a r I I in 1945 resulted in a drop of aircraft workers from the 85,000 peak of 1944 to 20,800 after V - J D ay. Following this, the number moved up slowly to 27,400 b y the outbreak of the Korean conflict in June 1950. (See accom panying chart.) Em ploym ent again moved up rapidly to a peak of 71,600 in Decem ber 1953, 3 months after the truce was signed. Unlike the situation at the end of W o rld W a r II, no large cutbacks were made in aircraft produc tion following Korea. Aircraft and parts em ploy ment dropped in N e w England to 65,300 b y June 1955, but has increased since then to 76,300, in September 1956. Table 1 shows aircraft employment in N e w England and the United States for June of each year from 1942 through 1956. The 73,300 air- T able 1.—Number and index of w orkers em ployed in th e aircraft and parts industry in New England and th e United States in June of 1942-56 Employment Number (in thou Index (June 1942= sands) 100) United New United New States England States England 787.4 1942: June___ _________________ 1943: June__ _____ _ ___ 1,339. 7 1944: June__ ____ ______ 1,300. 6 1945: June__ _ _ _ _ _ __ _ 947.7 1946: June____ _____________ 229.7 1947: June_________ _ __ _ 235.7 1948: J u n e .__... _____ 226.1 262.2 1949: June____ _ _ _____ _ 1950: June__ _ _____ _ 262.5 1951: June__ _ __ _ ... __ ... 458.8 1952: June__ _ ... ___ 651.7 1953: June__ ____ ______ _ 776.0 762.4 1954: June________ ______ ___ 1955: June___ ___ _ __ __ 726.0 790.4 1956: June_________ ______ 51.5 84.3 80.0 63.8 28.4 25.5 25.2 28.4 27.4 41.0 58.7 68.6 66.1 65.3 73.3 100 170 165 120 30 29 33 33 58 83 99 97 92 100 29 100 184 155 124 55 50 49 55 53 80 114 133 128 126 142 New England data compiled by the author; national data by U. S. Department of Labor’s Bureau of Labor Statistics. So u rce: the aircraft and parts industry by region, Decem ber 1 955 En lployment Region Employment and Earnings in Aircraft Date T a b l e 2 . —Employment in manufacturing and in th e United States. _______ New England___ _____ Middle Atlantic___ _ _ East North Central.. ... West North Central___ South Atlantic______ _ East South Central_____ West South Central____ Mountain___________ _ Pacific___... _________ Ratio of aircraft and parts All employment manufactur to all ing (in Number manufactur thousands) (in thou Percent ing sands) Aircraft iand parts 1 17,027.0 1,504.5 4,241. 2 4,962. 5 973.3 1,908. 5 805.2 788.8 210.6 1,446. 8 1 759.8 69.6 106.6 124.5 65.9 52.9 6.4 45.8 7.7 293.5 100.0 9.0 13.8 16.1 8.5 6.8 .8 5.9 1.0 38.1 4.6 4.6 2.5 2.5 6. 7 2. 8 .8 5.8 3.7 20.3 1 BLS estimate for United States adjusted to 1955 benchmarks; the States (and regional) series are unadjusted. S o u r c e : Regional estimates compiled by the author; national data by the U. S. Department of Labor’s Bureau of Labor Statistics. craft workers employed in N e w England in June 1956 represented a 42-percent increase over the 51,500 employed in June of 1942, the first year for which reliable data are available. F o r the coun try as a whole, the 790,400 aircraft and parts employment in June 1956 was about the same as in June 1942. N e w E n glan d’s 73,300 aircraft workers in June 1956 comprised 4.9 percent of her total factory employment. This percentage for N e w E ngland was about the same as the proportion (4.5 percent) for the country as a whole. W ithin N e w England, Connecticut’s 59,600 aircraft workers of Decem ber 1955 comprised 13.7 percent of its manufacturing employment; in Massachusetts, the proportion was only 1.2 per cent. In numbers of aircraft workers, three regions exceeded N e w England. The largest employment appeared in the Pacific region, followed b y the East N o rth Central and the M iddle Atlantic States. (See table 2.) Worker Concentration in Connecticut. The largest concentration of aircraft workers in N e w England is in Connecticut, where 65,900 were employed in September 1956. Massachusetts employed a m od erate 9,000 workers in this field, and fewer than 1,000 each were employed in M aine and Vermont. 1 Data presented for New England and other States or regions were pro vided by the author. Corresponding estimates for the country as a whole are from the U. S. Department of Labor’s Bureau of Labor Statistics. The most recent data in each case apply to the latest period for which the author had comparable data available when preparing the article in the early fall of 1956. 49 There is virtually no direct aircraft employment in N e w Hampshire and Rhode Island. These figures do not, however, indicate the large numbers of former residents of other N e w England States who have moved into Connecticut to man the expanding Connecticut aircraft industry. The first wave hit Connecticut during W o rld W a r II, when the moves were generally considered temporary. The northern N e w Englanders were supposedly going to Connecticut to work for “ the duration” and then, after the war, presumably would take their hard-earned money back to their native towns. This did not transpire. They liked and became accustomed to their relatively high earnings and their new environment; so they remained in Connecticut in large numbers. The second wave hit during the expansion of the Korean conflict. Again large numbers of workers from the northern States came to Connecticut and found jobs in the aircraft industry. These workers have also generally remained. W a s this migration to Connecticut good or bad? F or Connecticut, it permitted an expansion of high-wage aircraft employment and offset losses in other manufacturing industries. The aircraft wages paid within the State have enabled the econ omy to continue at a relatively high level and have helped make the State the most prosperous in N e w England. On the other side, the large numbers of migrants have created housing, school, and other social problems. F or the States which the workers left, the mi gration m ay have helped to relieve unemploy ment associated with declines in the textile and shoe industries. On the other hand, it is con ceivable that greater industrial development would have occurred in some of those areas, had the labor pool remained available. 3 . —Hours and gross earnings of production w orkers in th New England aircraft and parts industry in e June of 1947-56 T able Date Average Average Average weekly weekly hourly earnings hours earnings 1947: June______ ___ _________ ______ 1948: June____ _____________________ 1949: June___ - _ _ 1950: June___ _ _____ ______ 1951: June___ - _____ ___________ -1952: June________ ___ _ ___________ 1953: June______________________________ 1954: June_- __ - ____- ___________ 1955: June. _____ _ _ ______ 1956: June____ _______________________ So u rce: Estimates compiled by the author. $54. 22 60.38 61.28 64. 23 85.40 83.57 84.01 82. 98 86. 86 93. 83 39.8 41.5 40.1 41.2 46.6 44.0 43.1 40.7 41.1 42.4 $ 1 .3 6 1. 44 1.53 1. 56 1.84 1.90 1.94 2. 04 2.11 2. 21 Labor Turnover. The N e w England aircraft and parts industry has had a lower separation rate for the past 5 years than manufacturing as a whole. In June 1956, the aircraft total separation and quit rates in N e w England were 1.7 and 1.4, re spectively, per 100 workers employed (see tabu lation), compared with a total separation rate of 3.9 and a quit rate of 2.0 for the same month for all manufacturing in Connecticut, where the bulk of aircraft workers are employed. The aircraft and parts accession rate in June 1956 was 5.8 in N e w England as compared with 4.2 for all m anu facturing in Connecticut. June of— Turnover rates in the New England aircraft and parts industry (per 100 employees) Accession Total separarate tion rate1 Quit rate 1952 __________________ 3. 7 1. 9 1. 6 1953 __________________ 5. 5 1. 8 1 .0 1954 __________________ 1. 6 1. 6 1 .0 1955 __________________ 2. 7 1. 5 1 .1 1956 __________________ 5. 8 1. 7 1. 4 1 Includes quits, discharges, layoffs, and military and miscellaneous separations. S o u r c e : Estimates compiled by the author. The aircraft and parts industry has shown lower turnover in N e w England than in the coun try as a whole. For example, in June 1956, the aircraft total separation and quit rates in N e w England of 1.7 and 1.4 compared with the na tional industry's total separation rate of 2.4 and quit rate of 1.7. The 5.8 accession rate in the N e w England aircraft and parts industry in June 1956 compared with 4.8 for the industry as a whole. Earnings. W eekly wages paid in aircraft and parts are the highest of any industry group in N e w England. In June 1956, average weekly earnings in aircraft were $93.83 as compared with an average of $71.94 for all production workers in N e w England. (See table 3.) B u t the N e w England aircraft average earnings were below the $94.66 for all aircraft and parts workers through out the United States in June 1956. Neverthe less, the regional average was substantially above the $54.22 in 1947. The rise was marked b y a jum p from $64.23 in June 1950, to $85.40 in 1951 as the Korean conflict flared, and a second jum p from $86.86 in June 1955 to the June 1956 figure. Fringe benefits vary from plant to plant, but aircraft workers in N e w England generally enjoy 7 paid holidays; 1, 2, or 3 weeks of vacation, de- 50 pending on length of service; and life insurance, health and medical coverage, and pensions— all financed jointly b y employer and worker. Other Employment Characteristics. N e a rly all the N e w England aircraft workers are represented by labor unions. The International Association of Machinists covers about two-thirds of Connecti cut's aircraft workers, and the United Auto Workers, the remainder. In Massachusetts, the International Union of Electrical, Radio and M achine W orkers represents nearly all of the aircraft workers. A few very small plants in that State have no unions. The aircraft industry in the region has a good labor-management record; relatively few work stoppages resulting from labor-management dis putes have occurred in N e w England. The post w ar adjustment in 1946 saw several moderately long disputes. N o stoppages occurred from 1946 until October 1951, when 1 work stoppage involv ing 2,000 aircraft workers lasted for 2 weeks. N o stoppages have occurred since then. The Outlook The future of aircraft development in general is very promising and very complex. The aircraft industry is constantly changing and the location in N e w England of a substantial segment of the industry is, in itself, no guarantee that it will remain there in the future. How ever, the N e w England aircraft plants are blessed with progres sive management and skilled labor, which bodes well. Also, they offer a considerable amount of training, ranging from on-the-job training for semiskilled workers to postgraduate courses for their professional workers. Aircraft and engine designs are not static. A n y aircraft company which did not perform constant research and development would soon be out of business. One promising sign is the new atomic engine research center being built in M iddletown, Conn. The thousands of scientists and engineers who will be employed there will play a large part in determining which w ay N e w E ngland's aircraft production w ill go. [Six hundred Boston House Carpenters were involved in the first great strike for the 10-hour day in 1825. In opposing their demands, the master carpenters stated that they were] “ fraught with numerous and pernicious evils" . . . and would expose the journeymen themselves “ to m any tempta tions and improvident practices" from which they were “ happily secure" when working from sunrise to sunset. . . . Finally, they declared that they could not believe “ this project to have originated with any of the faithful and industrious Sons of N e w England, but are compelled to consider it an evil of foreign growth, and one which we hope and trust will not take root in the favoured soil of M assachusetts." — John R . C om m on s and Associates, H istory of L ab or in the U nited States, N ew Y o r k , M acm illan C o ., 1918, Y ol. I, P t. 1 (pp. 1 5 9 -1 6 0 ) . 0. S COVERNMLNT PRINTING OFFK.Es 1987