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P r o b le m s in M e a su re m e n t o f E x p e n d it u r e s o n S e l e c t e d It e m s o f S u p p l e m e n t a r y E m p lo y e e R e m u n e r a t io n BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner Problems in Measurement of Expenditures on Selected Items of Supplementary Employee Remuneration Manufacturing Establishments. 1953 Bulletin No. 1186 UNITED STATES D EPARTM ENT O F LA B O R James P. Mitchell, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner Ja n u a ry For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C. 1956 Price 50 cents Foreword In u n d e r t a k in g a n e x p l o r a t o r y s tu d y o f th e p r o b l e m s i n v o l v e d in m e a s u r in g e x p e n d i t u r e s o n s u p p l e m e n t a r y e m p l o y e e r e m u n e r a t i o n i n m a n u f a c t u r i n g i n d u s t r i e s , th e U . S . D e p a r t m e n t o f L a b o r * s B u r e a u o f L a b o r S t a t i s t i c s h a s v e n t u r e d in to a n o t h e r n e w a n d c o m p l e x a r e a o f s t a t is t ic a l r e s e a r c h . D u r in g r e c e n t y e a r s , r e p r e s e n t a t i v e s o f o t h e r G o v e r n m e n t a g e n c i e s a n d th e p u b lic h a v e u r g e d th e B u r e a u to c o l l e c t d a ta o n s u p p le m e n t a r y r e m u n e r a t io n to r o u n d ou t it s s t a t is t ic s o f a v e r a g e e a r n in g s , w a g e r a te s , an d r e la t e d w a g e p r a c t ic e s . K n o w l e d g e in t h i s f i e l d i s n e e d e d a l s o f o r in t e r n a t io n a l s t u d ie s ; th e I n t e r n a t io n a l L a b o r O r g a n iz a t io n , f o r e x a m p l e , h a s e v id e n c e d m a r k e d i n t e r e s t in th e d e v e lo p m e n t o f d a ta o n th e m a g n i tu d e o f w a g e s u p p le m e n t s in t h is a n d o t h e r c o u n t r i e s . A s th e p r in c ip a l a g e n c y o f th e F e d e r a l g o v e r n m e n t f o r th e d e v e lo p m e n t o f l a b o r s t a t i s t i c s , th e B u r e a u c o u ld n o t r e m a i n in d if f e r e n t t o th e q u e s t io n s r a i s e d w ith r e s p e c t t o th e m a g n it u d e o f t h e s e e x p e n d i t u r e s . B e fo r e any c o m p r e h e n s iv e s tu d y c o u l d b e m a d e , h o w e v e r , it w a s n e c e s s a r y t o e x p l o r e th e a v a i l a b i l i t y o f r e c o r d s , th e w il l i n g n e s s a n d a b ili t y o f in d u s t r y t o p r o v i d e d a ta , th e q u a lity o f e x p e n d itu r e d a ta , an d o th e r m a t t e r s o f m e t h o d o lo g y an d d e fin it io n . T h is p ilo t stu d y w a s u n d e r t a k e n w ith f in a n c i a l a s s i s t a n c e f r o m th e N a t io n a l B u r e a u o f E c o n o m i c R e s e a r c h , I n c . , a n d w a s c o n fin e d to m a n u fa c tu r in g e s t a b lis h m e n t s . D e s p ite its s h o r t c o m in g s , w h ic h a r e u n d e r s c o r e d th r o u g h o u t th is r e p o r t , th e stu d y h a s b e e n r e w a r d i n g t o t h e s t a f f o f t h e B u r e a u o f L a b o r S t a t i s t i c s a s I h o p e it w i l l b e t o th e r e a d e r s o f t h is a n a ly s is o f th e r e s u lt s . F u r t h e r w o r k b y th e B u r e a u o f L a b o r S t a t i s t i c s in m e a s u r i n g e x p e n d i t u r e s o n s u p p le m e n t a r y r e m u n e r a t io n u n d o u b t e d ly w ill b e s h a p e d b y th e e x p e r i e n c e g a in e d in t h is s u r v e y . A lt h o u g h th e d e v e lo p m e n t o f s p e c i f i c s u r v e y t e c h n iq u e s w i l l d e p e n d o n a m o r e in t e n s i v e a n a l y s i s o f th e d a ta in t h is r e p o r t , a n d p e r h a p s o n a d d it io n a l e x p lo r a t o r y in v e s t ig a t io n s , th e B u r e a u is n o w a s s u r e d th a t s u r v e y s o f e x p e n d it u r e s o n s u p p l e m e n t a r y e m p l o y e e r e m u n e r a t io n , c a r e f u l l y l i m i t e d in s c o p e , a r e te c h n ic a lly fe a s ib le . It i s e x p e c t e d t h a t t h e a b i l i t y o f e m p l o y e r s t o s u p p l y t h e n e c e s s a r y d a ta f r o m a v a i la b le r e c o r d s w i l l g r o w o v e r t im e u n d e r th e s t im u lu s o f a n in c r e a s i n g r e a l i z a t i o n th a t s u c h r e c o r d k e e p i n g i s u s e fu l f o r b u s i n e s s p u r p o s e s a n d w i d e s p r e a d p u b l i c i n t e r e s t in e x p e n d i t u r e d a t a . A c a u t io n a r y n o t e m a y b e in o r d e r : A s th e r e p o r t it s e l f m a k e s a b u n d a n t ly c l e a r , th e e x p e n d i t u r e d a ta s u m m a r i z e d in th e f o l l o w i n g p a g e s r e la t e o n ly t o t h o s e e s t a b lis h m e n t s r e p o r t i n g th e e x i s t e n c e o f , a n d d a ta f o r , th e p a r t i c u l a r p r a c t i c e in q u e s t i o n . T h e y d o n ot in c lu d e f ir m s in c u r r in g n o e x p e n d itu r e s f o r a p a r t ic u la r it e m a n d t h o s e u n a b le o r u n w illin g to r e p o r t e x p e n d it u r e s . H en ce, th e d a ta on a v e r a g e e x p e n d itu r e s f o r a n y p a r t ic u la r it e m a r e n o t a p p lic a b le to m a n u fa c tu r in g a s a w h o le . T h e y a r e p r e s e n te d b e c a u s e th e y h a v e a b e a r in g on q u e s t io n s o f m e t h o d o lo g y w h ic h w e r e o f p r i m a r y i m p o r t a n c e in t h i s s u r v e y . E w a n C la g u e C o m m is s io n e r o f L a b o r - iii - S ta tis tic s P r efa ce O v e r the past 15 ye a r s supplementary w a g e benefits, c o m m o n l y referred to as fringe benefits, have g r o w n steadily as expendi ture items for e m p l o y e r s an d as sources of income, leisure and security for w o r k e r s . Although the B u r e a u of L a b o r Statistics and other organizations ha v e attempted to keep abreast of this m o v e m e n t through studies of the types q | practices in effect a n d their p r e v a lence, comparatively little has be e n done in m e a s u r i n g the supple m e n t to w a g e s that these benefits represent or the e m p l o y e r expendi tures that they entail. A n u m b e r of private organizations ha v e m a d e studies of "fringe-benefit" expenditures for the use of their m e m b e r s h i p or for general distribution. P r o b a b l y the m o s t widely circulated reports are those issued by the C h a m b e r of C o m m e r c e of the United States for the years 1947, 1949, 1951, a n d 1953.* T w o m a j o r questions m u s t be a n s w e r e d before effective w o r k can be done on m e a s u r i n g expenditures for all s upplementary benefits. T h e first involves the conceptual difficulties created by the a b s ence of a c o m m o n l y accepted definition of "fringe" or supplementary benefits. W h i c h practices an d types of expenditures do these t e r m s cover? Opinions within a n d b e t w e e n labor an d m a n a g e m e n t circles differ widely. T h e second p r o b l e m relates to w h e t h e r useful a nd reliable data o n expenditures c an be obtained f r o m c o m p a n y records for all benefits in effect, or for a fixed package, or for specific items. This exploratory study, confined to manufacturing establish ments, deals with the p r o b l e m s of m e a s u r i n g expenditures, not with defining "fringe benefits." Largely because of the conceptual dif ficulties noted above, the study bears the c u m b e r s o m e title of " P r o b l e m s in M e a s u r e m e n t of Expenditures on Selected Items of S u p p l e m e n tary E m p l o y e e R e m u n e r a t i o n . " In other words, this is essentially a study of the methodological p r o b l e m s encountered in surveying c o m p a n y expenditures on a p r e d e t e r m i n e d list of items which, although not necessarily classifiable as fringe benefits, are nonetheless signif icant f o r m s of e m p l o y e r expenditures for labor. T h e items to be studied w e r e selected by the B u r e a u of L a b o r Statistics. It is important to e m p h a s i z e that the t e r m "expenditures" is not intended as a m e a s u r e of actual costs to the e m p l o y e r nor of the value of the benefits to the workers. T h e m e a s u r e m e n t of the real * See, for example, Fringe Benefits, 1953, C h a m b e r m e r c e of the United States, Washington, D. C., 1954. v - of C o m Preface - Continued c o s t s con n e cte d with a p a r tic u la r p r a c t ic e m ust take into a ccou n t o f f setting savin gs o f v a rio u s ty p es (w hich, as in the c a s e o f som e p r e m iu m pay ite m s , m ay equal o r e x ce e d ex p e n d itu re s) and, p o s s ib ly , a d d ition al re la te d e x p e n se s not in clu d ed in the ex pen ditu re to ta l. F o r e x a m p le, a p aid v a ca tio n p o lic y o b v io u sly in v o lv e s an expen ditu re o f m oney by the e m p lo y e r . T ota l ne x p e n d itu re s" re p r e s e n t the sum of the v a ca tion p aym en ts to individual w o r k e r s . H o w e v e r, this d o e s not r e fle c t the net c o s t of a v a ca tion p o lic y . T h e re a re o ffse ttin g sa v in g s, w hich m ay in clu d e the am ount o f " c o v e r - u p " o r nm a d e -u p n w o rk , the resu ltan t in c r e a s e in p ro d u ctiv ity during the re m a in d e r of the y e a r , a red u ction in a b s e n te e is m , and a re d u ctio n in la b o r tu r n o v e r . On the oth er hand, add ition al e x p e n se s m ay a r is e through the substitution, tra in in g, and tr a n s fe r o f w o r k e r s during the v a ca tion se a so n , the h irin g of le s s e fficie n t re p la c e m e n ts , the lo s s o f p ro d u ctio n during the v a ca tio n se a so n , the le g a lly re q u ir e d p aym en ts such as the s o c ia l s e cu rity tax w h ich apply to v a ca tion pay as w e ll as to re g u la r w a g e s, and the a d m in istra tiv e c o s t s in v o lv e d . A v a ca tion shutdown, h o w e v e r , m ay elim in a te train in g and re p la ce m e n t c o s t s , p e r m it u n in te r rupted m a in ten an ce and r e p a ir w ork , and, if co in cid in g with a sla ck p e r io d o r se a so n a l lu ll, fa v o ra b ly a ffe c t the e m p lo y e r 1s e x p e r ie n c e rating under State u n em p loym en t co m p e n sa tio n la w s. The d e te r m in a tion o f the net co s t of a v a ca tio n p o lic y is m a n ife stly a co m p lica te d a ccou n tin g p r o b le m . T h is study d e a ls w ith the p r o b le m s in v olv ed in m e a su rin g e m p lo y e r expen ditu re s fo r paid v a ca tion s and oth er ite m s , without attem pting to evaluate c o s t s to the e m p lo y e r o r the b e n e fits d e riv e d by the e m p lo y e e . A lthough the B u reau has long b een in te re s te d in this fie ld of in q u iry , and as e a r ly as 1951 u n dertook a study of s e le c te d su p p le m en ta ry ex p en d itu res in the b a s ic ste e l in d u stry, this p ilot study w as in itia ted at the re q u e st o f, and with the c o o p e r a tio n o f, the N ational B u rea u o f E c o n o m ic R e s e a r c h , I n c ., a s p art o f that o r g a n iz a t io n s lo n g -r a n g e study o f the m ov em en t o f w age ra te s and ea rn in g s in the United S tates. In co m m o n with oth er u s e r s o f w age s t a tis t ic s , the N ational B u rea u o f E c o n o m ic R e s e a r c h wanted to know m o r e about the s iz e and sig n ifica n ce o f the su p p lem en tary wage b e n e fits w hich have co m e into g e n e ra l u se in re ce n t y e a r s , and re q u e ste d the B ureau o f L a b or S ta tistics to undertake what is e s s e n tia lly a g ro u n d -b re a k in g su rv e y . The c o o p e ra tio n o f the N ational B u rea u o f E c o n o m ic R e s e a r c h is g ra te fu lly a ck n ow led g ed . The study w as con d u cted by the B u rea u of L a b o r S ta tis tic s 1 D iv is io n o f W ages and In d u stria l R e la tio n s. T ech n iq u es fo r the s e l e c tion o f the sa m ple and the tabu lation o f the data w e re d e v is e d and su p e rv is e d by Sam uel E . C oh en . J osep h W. B lo c h d ir e c t e d the study, w ith the a s s is ta n c e o f Don Q . C ro w th e r, and p r e p a r e d the r e p o r t . vi Contents P a ge F o r e w o r d ---------------------------------------P r e f a c e ______ S u m m a r y _______________________________________________________ P u r p o s e , m eth od, and s c o p e o f s u r v e y --------------------------------------M ethod __________________________________________________________ The sa m p le d e s ig n —-----------------------------------:--------------- ---------------- iii v 1 9 10 14 C h a r a c te r is tic s o f the r e s p o n s e --------------------R ate o f r e s p o n s e ________________ M ultiplant r e p o r t in g ---------O ther c h a r a c t e r is t ic s o f the r e s p o n s e ________________________ The fin al s a m p l e ________________________________________________ The n o n re sp o n se _______________________ 17 17 18 20 21 23 E sta b lish m e n t r e c o r d s and re p o rtin g p r a c t i c e s _________________ E xpenditure r e c o r d s __________________________________________ T im e r e c o r d s ___________________________________________________ A ctu a l and e stim a te d expen ditu res ___________________________ 27 27 28 32 F a c t o r s a ffe ctin g expen ditu re le v e ls _____________________________ E sta b lish m e n t expen diture le v e ls _____________________________ A v e r a g e expen ditu re ra tio s _____ A ctu a l and e stim a te d re p o rtin g ________________________ E xp en d itu res p e r a dju sted p a y r o ll h o u r ___________________ V a ria tio n s by s iz e o f e sta b lish m e n t ______________________ V a ria tio n s by in d u stry g r o u p ______________________________ V a ria tio n s by c o lle c t iv e b a rg ain in g status _______________ V a ria tio n s b y type o f p r a c t ic e and ea rn in gs l e v e l s ______ V a ria tio n s in le g a lly re q u ir e d paym ents am ong re g io n s _____________________________________________________ 41 41 45 46 48 51 57 58 64 68 T a b le s : 1. 2. 3. 4. 5. 6. 7. Rate of re tu rn o f u sa b le q u e stio n n a ire s b y in d u stry group ___________________________________________ Rate of retu rn o f u sa b le q u e stio n n a ire s by r e g i o n --------------------------------------------------------------------------------Rate of retu rn o f u sa b le q u e stio n n a ire s b y s iz e o f unit c o v e r e d _____________________________________ K eep in g o f ex pen ditu re r e c o r d s fo r p ro d u ctio n and r e la te d w o r k e r s b y ite m ___________________________ E sta b lish m e n t p r a c t ic e in su m m a riz in g expen diture r e c o r d s fo r p ro d u ctio n and re la te d w o r k e rs b y ite m ___________________________ K eeping o f tim e r e c o r d s fo r p ro d u ctio n and re la te d w o r k e rs by s e le c te d item s _____________________ E sta b lish m e n t p r a c t ic e in su m m a riz in g tim e r e c o r d s fo r p ro d u ctio n and re la te d w o r k e r s by s e le c te d item s _______________________________________ - v ii - 19 19 19 29 30 30 31 Contents - Continued T a b le s: - C ontinued 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 2 5. 2 6. P age N ature o f expen ditu re fig u re s re p o r te d by i t e m -----------N ature o f expen ditu re fig u re s re p o r te d fo r ite m grou ps b y union status -------------------------- -----------------------N ature o f ex pen ditu re fig u re s re p o r te d fo r ite m grou ps b y s iz e o f e s t a b lis h m e n t -----------------------------------R ea son s o ffe r e d fo r fa ilu re to r e p o r t expen ditu res b y ite m ___________________________________________________ M ethods o f estim a tin g expen ditu res b y i t e m -----------------A v e r a g e ex p en d itu res p e r p a y r o ll hour fo r re p o rtin g esta b lish m en ts on ly by item and nature o f r e p o r t _____________________ A v e r a g e ex p en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g e sta b lish m e n ts on ly b y ite m and nature o f r e p o r t _____________________________________ A v e r a g e ex p en d itu res p e r y ea r p e r e m p lo y e e fo r re p o rtin g esta b lish m en ts on ly by item and nature o f r e p o r t _________________________________________ D iffe r e n c e betw een a v e ra g e expen ditu res p e r p a y r o ll hour and a v e ra g e expen ditu res p e r a dju sted p a y r o ll h o u r, fo r re p o rtin g esta b lish m en ts on ly b y i t e m ------E x p en d itu res p e r p a y r o ll hour fo r re p o rtin g esta b lish m en ts on ly b y ite m and s iz e o f e s t a b lis h m e n t ____________________________________________ E xp en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g esta b lish m en ts on ly b y ite m and s iz e o f e s t a b lis h m e n t ____________________________________________ A v e ra g e exp en d itu res p e r ad ju sted p a y ro ll hour fo r re p o rtin g esta b lish m en ts o n ly by ite m and in d u stry group __________________________________________ A v e r a g e exp en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g esta b lish m en ts on ly by ite m and in d u stry group __________________________________________ E xp en d itu res p e r y ea r p e r e m p lo y e e fo r re p o rtin g esta b lish m e n ts on ly b y ite m and in d u stry group ____ E xp en d itu res p e r p a y r o ll hour fo r re p o rtin g esta b lish m en ts on ly b y ite m and union status ________ E xp en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g esta b lish m en ts on ly b y ite m and union status _________ E xp en d itu res p e r p a y r o ll hour fo r p aid h olidays fo r re p o rtin g e sta b lish m e n ts on ly b y esta b lish m e n t ea rn in gs le v e l and nu m ber o f h olid a ys p ro v id e d _______________________________________ E xp en d itu res p e r p a y r o ll hour fo r p aid va ca tion s fo r re p o rtin g e sta b lish m e n ts on ly b y e sta b lish m e n t earn in gs le v e l and a v e ra g e length o f v a c a t i o n _________ E xp en d itu res p e r p a y r o ll hour fo r sh ift p re m iu m s fo r re p o rtin g e sta b lish m e n ts o n ly b y volu m e o f sh ift w o r k ----------- -------------------- — ----------------------------------- - v iii - 31 35 36 37 38 47 49 50 52 53 55 59 59 60 62 63 65 65 67 Contents • Continued T a b le s: - C ontinued 27. 28. 29. 30. Page E xp en d itu res p e r p a y r o ll hour fo r s ic k le a v e fo r re p o rtin g e sta b lish m e n ts on ly b y type o f plan __________________________________________ E xp en d itu res p e r p a y r o ll hour fo r p e n sio n plans fo r re p o rtin g e sta b lish m e n ts o n ly b y type o f plan __________________________________________ E xp en d itu res p e r a d ju sted p a y r o ll hou r fo r le g a lly r e q u ir e d paym ents fo r re p o rtin g esta b lish m en ts on ly b y re g io n and type o f p a y m e n t__________________________________________ E xp en d itu res fo r le g a lly re q u ir e d paym ents as p e r c e n t o f p a y r o ll fo r re p o rtin g esta b lish m en ts on ly b y r e g io n and type o f p a y m e n t ___________________ 67 67 69 70 A ppendix: Q u estion n a ire __________________________________________________ In stru ction s fo r q u e s t io n n a ir e ________________ _______________ IX 71 79 P r o b l e m s in M e a s u r e m e n t of E x p e n d i t u r e s on S e l e c t e d I t e m s of S u p p l e m e n t a r y E m p l oy e e R e m u n e r a t i o n S u m m ary No sin gle study, h o w e v e r e x te n s iv e , can p ro v id e d efin itiv e a n sw ers to a ll s u r v e y p r o b le m s in a c o m p le x fie ld o f s ta tis tic a l in v estig ation * A ll su rv e y w o rk in the s o c ia l s c ie n c e s , in d eed , r e q u ir e s a con sta n t p r o c e s s o f adaptation to change in the fie ld o f in q u iry and in s u r v e y te ch n iq u e s. The p re se n t su rv e y was lim ite d in te r m s o f in d u stria l c o v e r a g e , o b je c t iv e s , and m eth od . It was h op ed, h o w e v e r , that the study w ou ld advance a p p re cia b ly the kn ow ledge o f the p r o b le m s and co n d itio n s to be taken into a ccou n t in su r v e y s o f e x p e n d i tu res on c e r ta in s e le c te d ite m s o f su p p lem en tary e m p lo y e e r e m u n e r a tion , T h is m o d e s t e x p e cta tio n , in the judgm ent o f the B u rea u , was r e a liz e d . T h is s e c tio n attem pts b r ie fly to su m m a riz e the d eta iled a n a ly sis o f the nature and fin d in gs o f this e x p lo r a to r y study. T h o se r e a d e r s with m o r e than a ca su a l in te re s t in the m e th o d o lo g ic a l p r o b le m s to w h ich the r e p o r t is d ir e c te d a re u rg ed to exam in e the b od y o f the r e p o r t . T he s u r v e y was d esig n ed b a s ic a lly to th row ligh t on a v a r ie ty o f m e th o d o lo g ic a l p r o b le m s , such as the nature o f r e c o r d s on s e le c te d exp en d itu re ite m s m ain tain ed by e m p lo y e r s , com p a n y p r a c t ic e with r e s p e c t to the su m m a riz a tio n o f these r e c o r d s and the ca lcu la tio n o f ex p en d itu re s in the a b se n ce o f s p e c ific expen ditu re r e c o r d s , the w illin g n e ss o f e m p lo y e r s to supply actual o r ca lcu la te d data in r e sp on se to a m a il in q u iry , and re la te d q u e s tio n s . L ight was a ls o sought on the q u estion o f fa c t o r s m aking fo r v a ria tio n s in ex p en d itu res am ong e m p lo y e r s fo r p a r tic u la r it e m s , and on the m o s t u sefu l ways of p r e senting expen ditu re data. It was not intended that the su r v e y should d e v e lo p d efin itiv e e stim a te s o f actual ex p en d itu res f o r the u n iv e rse o f e sta b lish m e n ts (m an u factu rin g as a w hole) to w hich the su rv e y re la te d . The b o d y o f the r e p o r t con tain s m any ca u tio n a ry n otes to this e ffe c t . On the o th e r hand, it was e s s e n tia l that a s y ste m a tic su r v e y be undertaken; that i s , it was n e c e s s a r y f o r the p ilo t su rv e y to a p p ro x im a te , w ithin lim it s , the p r o c e d u r e s and con d ition s o f a su rv e y d e sig n e d to p ro d u ce th ose e s t im a te s . The p r in c ip a l d ep a rtu re fr o m standard m a il s u r v e y p r o c e d u res in the p ilo t study was the a b se n ce o f p r o v is io n fo r fie ld follow u p o f n o n resp o n d e n ts, and fo r a lim ite d fie ld ch e c k on th ose who did r e p o r t . Such follow u p c le a r ly w ould have to be undertaken in a s u r v e y d esig n ed to d e v e lo p expen ditu re e stim a te s a p p lica b le to a d efin ed u n iv e rse o f f i r m s . The nature o f the n o n re sp o n se to the p ilo t su rv e y w a s, h o w e v e r , s u s ce p tib le o f so m e a n a ly s is , as the b o d y o f the r e p o r t 1 2 show s. Had la rg e r r e s o u r c e s been available fo r the pilot study, ad ditional in quiries could have been d irected to the resp on d en ts, p a r t ic u la rly with rega rd to variations in accounting p r o c e d u r e s . As su g gested e a r lie r , h ow ever, no single su rvey can probe into all asp ects o f a field o f sta tistical m easu rem en t, and the pilot su rvey in the fo rm in which it developed was unusually demanding upon respondents and the B ureau. Scope and M ethod o f Survey Any su rvey requ ires that b a sic d ecision s be taken with r e sp ect to its s c o p e . The p ilot study was lim ited to m anufacturing, and the sam ple was so drawn as to rep resen t all size groups (a m in im um s iz e lim it o f 20 em ployees was set fo r the su rvey), all g e o graphic re g io n s , and all m anufacturing in d u stries. In p rin cip le , the size o f the sam ple was such that com p lete resp on se would have p e r m itted the presentation o f data reasonably represen tative o f m anufac turing as a w hole; even with com p lete re sp o n se , the size o f the sam ple would not have perm itted the showing o f separate data fo r p a rticu lar in d u strie s. Com plete resp on se , o f c o u r s e , was not expected. It was hoped that the resp on se would be su fficien tly great to p erm it exam in a tion o f the p rob lem s to which the su rvey was d ire cte d . The sam ple was se le cte d on an establishm ent b a s is , but m u lti plant com panies w ere given an option o f reportin g fo r all plants c o m bin ed. In term s o f em ployee co v e ra g e c o v e r produ ction and related w o rk e rs . the study was designed to The item s of supplem entary rem uneration se le cte d fo r study w ere: P aid vacations P aid holidays P aid sick leave P rem iu m pay fo r ov e rtim e — daily, w eekly, o r fo r w ork on s p e c ific days as such P rem iu m pay fo r w ork on holidays Shift prem ium pay P en sion plans Insuran ce, health, and w elfare plans L ega lly requ ired paym ents----- Old Age and S u rvivors Insurance, unem ploym ent c o m pensation, w o rk m e n 's com pensation, and State tem p ora ry d isa bility in su ran ce. T hese item s o f supplem entary rem uneration are am ong the m ost com m on ; they account fo r a la rg e part o f total expen ditu res, how ever such expenditures are defined; excep t fo r those req u ired by law , they are su bject to co lle c tiv e bargain ing. T hey rep resen t im portant types o f com pany expenditures going to w o rk e rs , o r paid on their beh alf, and not accounted fo r in straigh t-tim e wage r a te s. 3 A num ber o f p a y roll and m an-hour aggregates w ere requested to p erm it the com putation o f variou s expenditure r a tio s . The su rvey was not lim ited to the reportin g o f actual expen di ture data. E m p loyers w ere requ ested, w here p o s s ib le , to estim ate o r calculate expenditures in the absence o f actual expenditure r e c o r d s , and to indicate how the estim ates w ere m ade. The su rvey p ro p e r was conducted essen tia lly by m a il. H ow e v e r , the questionnaire was p retested by p erson a l v is its to a sm a ll number o f fir m s . In the actual su rvey, an initial v is it to a group o f k ey com panies was m ade by B ureau rep resen ta tives to review the fo r m and in structions with com pany rep resen ta tives who w ere r e spon sible fo r supplying the data. Q uestionnaires w ere m ailed in A p ril 1954, and data w ere requ ested fo r the calen dar year 1953. One follow up letter was sent to all nonrespondents. Editing o f the returns b e r o f requ ests b y the Bureau data. The resp on se to these the num ber o f re p lie s and the resu lted in a com p a ra tively la rge num fo r cla rifica tio n o f data o r fo r om itted requ ests was sa tis fa cto ry in term s o f additional o r cla rify in g data subm itted. Survey R esults R espon se to the Q u estion n a ire.— A s m easu red in term s o f usable qu estion n aires, a resp on se rate o f 50 p ercen t (550 returns out o f 1,105 solicited ) was obtained. E s p e cia lly in view o f the length and com p lexity o f the qu estion n aire, this re sp o n se rate to a m a il inquiry is encouraging evidence o f in terest among respondents in the content o f the su rvey and o f their ability to p rovid e all o r part o f the b a sic data req u ired . The resp on se rate was re la tiv e ly low fo r industry groups in which sm all establishm ents p redom in ate, fo r low -w a ge industry g ro u p s, and fo r establishm ents loca ted in the South. S iz e , wage le v e l, and loca tion ob v iou sly are not com p letely independent v a r ia b le s . F or exa m ple, the low est rate o f resp on se was fo r the apparel industry grou p . A pparel is ch a ra cte rize d by sm all establishm ents, c o m p a ra tively low wages in som e bran ch es o f the in dustry, and the location o f im portant segm ents o f the industry in the Southern re g io n . A r e l atively low rate of resp on se was obtained also fr o m com panies with plants in m o re than one reg ion . The resp on se to the su rvey was analyzed in term s o f a num b e r o f im portant c h a r a c te ris tic s o f m anufacturing as a w h ole. Thus, about 75 p ercen t o f the establishm ents responding rep orted c o lle c tiv e bargaining con tra cts cov erin g a m a jo rity o f their produ ction and r e lated w o r k e r s . On the b a sis o f other Bureau in form ation on con tra ct c o v e ra g e , this prop ortion appears to be slightly above the le v e l fo r all m anufacturing. S im ila rly , the resp on se fr o m high-w age as c o m pa red with low -w a ge establish m en ts, and fr o m establishm ents which 4 tend to have many rather than few supplem entary p r a c t ic e s , appears to have been som ewhat g re a te r, on the a v era ge, than the actual p r o portion s in m anufacturing. The d iffe r e n c e s , h ow ever, were co m p a ra tiv ely sm a ll, and the upward bias was not judged to be sign ifica n t. The net im p re ssio n is that the p rob lem o f a represen tative sam ple o f establishm ents in m anufacturing would not be e s p e c ia lly fo rm id a b le . The p ilot survey indicated c le a r ly the m a jo r d irection s in which supplem entation o f the returns to a m ail inquiry would have to be m ad e, and this in form ation is of great use in su rvey planning. A su rvey by m ail designed to develop expenditure data represen tative o f m anufacturing would, o f c o u r s e , requ ire the use o f p e rso n a l v isits to nonrespondents and spot ch ecks o f the returns o f resp on d en ts. If data w ere to be published separately by industry group, the sam ple would have to b e con sid era b ly la rg e r than that em ployed in this p ilo t study. The co sts o f such a study would be substantially greater than those in cu rred in the p resen t e ffo rt. R e c o rd s and R eporting P r a c t ic e s .— A m a jo r pu rpose o f the study was to lea rn the prevalen ce among m anufacturing establishm ents o f the m aintenance o f expenditure and/or tim e r e co r d s fo r the sele cte d item s o f em ployee rem uneration, and o f the ability to supply actual o r estim ated data fr o m these r e c o r d s . R ecord k eep in g . — By and la rg e , the r e co r d k e e p ing p r a c tic e s w ere encouraging fo r those with an in terest in developing system atic data on supple m entary rem u neration. T here w as, of c o u r s e , c o n sid era b le variation in p r a c tic e . R e co rd s w ere m ost com m on ly m aintained, as was anticipated, fo r leg a lly requ ired paym ents. T here was a tendency in r e c ordkeeping to com bine prem ium pay fo r overtim e with prem ium pay fo r holiday w ork. With re sp e ct to p en sion s, payments made fo r past s e rv ic e lia b ility frequently w ere com bined with paym ents fo r cu rren t s e r v ic e . F o r insurance and w elfare ite m s, r e c o r d s w ere often m aintained fo r a com bination o f item s (the "w elfa re p a ck a g e", which m ight co n sist o f h ospitalization , su rg ica l, and other benefits) rather than fo r each item sep a ra tely. In the ca se o f shift prem ium pay, the p rop ortion o f establishm ents not keeping r e c o r d s was exception ally high, suggesting that m any com panies view shift prem ium s as part o f b a sic wages fo r p a yroll accounting p u rp o s e s. About half o f the respondents indicated that separate e x penditure r e co r d s fo r each o f the se le cte d item s in e ffe ct in the establishm ent w ere kept. Excluding prem iu m pay, the p rop ortion was in cre a se d to ap p roxim a tely 70 p ercen t. 5 Sum m arization of R e c o r d s .— The vast m a jo rity o f establishm ents keeping expenditure r e c o r d s sum m a rized the individual r e co r d s fo r their own o r other u s e s . This was true also with re sp e ct to tim e r e c ord s fo r the prem iu m pay and other p a y ro ll ite m s, such as overtim e o r paid h olida ys. W here tim e r e c ord s are available, a b a sis is p rovid ed fo r estim ating expenditures in the absence o f actual expenditure record s. P ro v is io n o f Data fr o m R e c o r d s .— While in fo r m ation on recordk eepin g p r a c tic e s as such is im portant, the cru cia l question, in term s o f expenditure stu dies, is the w illin gness and ability o f respondents to p rovid e the requested data fr o m their r e c o r d s . F o r exa m ple, r e c o r d s m ay exist on shift w ork, but the sum m arization o f these r e co r d s (on either a tim e o r expenditure b a sis) fo r a p e rio d o f a year m ay be e x c e s s iv e ly tim e consum in g. A c lo s e ly related c o n sideration is the quality o f the in form ation p rov id ed . A ctu ally, about 75 percen t o r m o re o f the e s tablishm ents keeping expenditure r e c o r d s provided actual expenditures fo r paid va ca tion s, paid h olida ys, and the le g a lly requ ired ite m s. M ost com panies cou ld not provide actual figu res on the insurance com p on en ts. About 30 percen t o f the respondents p rovid ed actual expenditure figu res fo r all se le cte d item s liste d and in e ffe ct. Another 46 p ercen t p r o vid ed som e actual and som e estim ated fig u res o r , in a few c a s e s , made estim ates fo r e v e ry ite m . In the rem aining 24 percen t o f the r e p o r ts , data w ere absent fo r one o r m o re o f the item s in e ffe c t. The corresp on d in g p rop ortion s fo r the ca te g o ry nall s e le cte d item s except prem ium pay” w ere 45 p e rce n t, 42 p e rce n t, and 13 p e rce n t. W here estim ates w ere p rov id ed , the m ethods m ost com m on ly used w ere (l) calculating expen di tures on the b a sis o f related data; e . g . , applying an average wage rate to available data on m a n -h ou rs; o r (2) prorating expenditures as between produ ction and related w ork ers and all em ployees o r the p a r ticu lar grouping o f em ployees c o v e re d b y the r e c ord s o f the establishm ent. In gen eral, the m ethods o f estim ation o r calculation appeared rea son a b le. The d ifferen ces between actual and estim ated or calculated expenditure ra tio s, as presented in the aggregate fo r all reporting establishm ents, w ere slight. 6 Quality o f the R e s p o n s e .— The a ccu ra cy and r e lia b ility o f the individual resp on ses w ere d ifficu lt fa cto rs to a s s e s s in the absence o f o n -th e -s p o t ch e c k s . Matching com pany p ra ctice s against e x penditures p rovid ed a rough m easu re o f re lia b ility . A number of overstatem en ts, understatem ents, and om issio n s w ere brought to the attention o f resp on d ents and w ere c o r r e c te d b y this m ethod. F o r e x am ple, data rep orted on m an-hours o f vacation taken and paid fo r , in conjunction with average hourly earnings derived fr o m the aggregate p a yroll and m an-hour data a lso rep orted , p rovid ed a ch eck on rep orted vacation expenditures; s im ila r c r o s s -c h e c k s could be m ade on som e o f the other ite m s. It m ay b e , h ow ever, that many e r r o r s in reporting w ere not d etected , p a rticu la rly where re p orted expendi tures fe ll within the range of p o s s ib le expenditures fo r the p r a c tic e s in e ffe ct. What e ffe ct such reporting e r r o r s as w ere m ade m ight have on aggregate data can only be su rm ise d . It is obvious that it would take a substantial num ber o f e r r o r s in the sam e d irection to a ffect sign ificantly the type o f expenditure ratios com puted in this study. An analysis o f the expenditure ratios fo r the item s which could be m atched with p r a c tic e s fa iled to d is c lo s e any concentration o f e r r o r s , upwards o r down w ards . H ow ever, no evaluation o f the p r e c is io n o f the aggregate resp on ses fo r these item s was p o s s ib le , m ainly becau se o f the va riety o f fa cto rs affecting expenditure le v e ls in individual establish m en ts. F o r som e ite m s, p a rticu la rly pensions and health and in surance plans, the data c o lle c te d in this survey p rovid ed no b a sis fo r judgm ent regardin g the r e lia b ility o f the resp on se. R e c o rd s and Survey P lan n in g.— O bviously, the m a ss o f inform ation accum ulated on the recordk eepin g p r a c tic e s , and on the w illingness and ability of e m p lo y e rs to provide actual o r estim ated expenditure data are b a sic fo r survey planning. In another study, fo r in stan ce, it m ight be n e c e s s a r y to requ est a total expenditure figu re fo r in su ran ce, rather than a b r e a k down by com ponent, such as h osp italization , s u rg ica l, and the lik e . It should be re co g n iz e d , at the sam e tim e, that recordk eepin g p r a c tic e s are not s ta tic. T his p ilo t study revea led that em p loyers do, in fa ct, w idely m aintain the types of r e co r d s req u ired b y the s u r v e y , a re fle ctio n o f the in crea sin g im portan ce o f 7 supplem entary expenditures and o f em ployers* need fo r knowledge o f their m agnitude. It is reasonable to exp ect that such in terest w ill re su lt in further refinem ents o f record k eep in g. F a cto rs A ffecting Expenditure L e v e ls .— The final p ortion deals with som e of the fa cto rs accounting fo r variations among e sta b lish m ents and groups o f establishm ents in expenditure le v e ls fo r the s e lected ite m s. This type of analysis could be presen ted in m eaningful fo r m only by the use o f ratios com m on ly em ployed to com pare e x penditures among establish m en ts. A s em phasized repeatedly, la te r , expenditure ratios in this study are not applicable to m anufacturing as a w hole. The resp on se was not com p letely represen tative o f m anufacturing; m o r e o v e r , the averages shown fo r individual item s relate only to establishm ents reporting expenditures fo r such ite m s. H ow ever, the sizable body of expenditure in form ation which was gathered can be validly used to throw light on a variety o f q u e s tions im portant fo r survey planning. F o r exam ple, the d isp e rsio n that can be expected in a value o r s e rie s o f values (like expenditures fo r paid vacations) has practiced im plication s fo r sam ple design. S p e cifica lly , 524 establishm ents rep orted expenditures fo r paid va ca tion s. How do these expenditures (in te rm s , fo r exam ple, o f cents p e r p a y roll hour) va ry by such fa cto rs as size o f e sta b lish m ent, wage le v e l, o r c o lle c tiv e bargaining status? The analysis o f the data p rov id es ex trem ely su ggestive, even though tentative, an sw ers to questions of this type. It seem s c le a r that the resu lts o f the analysis o f expenditure variations fr o m this p a rticu lar study show at lea st the m inim um range within which variation in expenditure ratios w ill o c cu r in m anufacturing. A distribution o f expenditure ratios fo r a pa rticu la r item among a thousand establishm ents m ight revea l a grea ter range than that shown b y the p resen t study; obv iou sly the range would not be s m a lle r. Significant inform ation on fa cto rs making fo r variations in expenditures among firm s and on the range of expenditures that can be anticipated in this type o f survey is developed in the final section o f the re p o rt. Some b r ie f general findings on expenditure variation follow : 1. The su rvey found con sid erab le variation among e sta b lish m ents in expenditure lev els fo r the sam e item , whether e x p re sse d in cents p er hour, p ercen t o f p a y ro ll, o r d ollars p e r year per e m p loy ee. 2 . Som e o f the fa cto rs accounting fo r variations among e s tablishm ents in expenditure ratios fo r a pa rticu la r item are type o f p r a c tic e , e lig ib ility requ irem en ts, wage le v e l, m an-hours o f e m p lo y m ent, and g ro s s p a y r o lls . 8 3. Many o f the fa cto r s influencing g r o s s expenditures le v e ls and the com puted expenditure ratios among establishm ents also account fo r changes in the sam e establishm ent fr o m one yea r to another. Changes in the volum e o f overtim e w ork , fo r exa m ple, not only make fo r changes in expenditures fo r prem iu m pay but also a ffect the p e r c e n t-o f-p a y r o ll ratios fo r other ite m s. The m o st unstable expen di tures are lik ely to be fo r p rem iu m pay fo r overtim e and shift w o rk , sin ce expenditures depend on the volum e o f such w ork , ex p en d itu res fo r pensions are also lik ely to exhibit y e a r -t o -y e a r variations which are not cau sed by changes in the type o f plan in e ffe c t. 4. expenditures wage le v e l), and earnings this analysis The data lent them selves to analysis o f va ria tion s in by size o f establishm ent, industry group (c la s s ifie d by c o lle c tiv e bargaining status, re g io n , type o f p r a c t ic e , le v e l. H ow ever, the tentative relation sh ips d e riv e d fr o m are m uch too com p le x fo r any gen era lized su m m a ry. 9 P u r p o s e , M ethod, and Scope o f S u rvey The tech n iqu es o f w age rate su rv e y s have b een d e v e lo p e d and re fin e d o v e r a long p e r io d o f t im e . In co n tra s t, the technique o f su rvey in g e m p lo y e r ex p en d itu res on su p p lem en tary o r nonwage rem u n era tio n , such as paid v a ca tio n s and p e n sio n s , is still in a ru d im en ta ry sta g e . T his study w as undertaken to e x p lo r e the p r o b le m s in v o lv e d in su rvey in g such e x p e n d itu re s. Sin ce e ffic ie n t su rv e y tech n iqu es r e s t on a foundation o f kn ow ledge about the su b je ct studied, this e x p lo ra tio n n e c e s s a r ily d eals with the m agnitude and range o f ex p en d itu res fo r s e le c te d ite m s am ong a substantial nu m ber o f e sta b lish m e n ts, and the v a ria tio n s in e x penditure le v e ls am ong m anu factu rin g in d u stry g ro u p s , la r g e and sm a ll fir m s , e sta b lish m e n ts with s im ila r p r a c t ic e s , e t c . It was not e x p e cte d , h o w e v e r , that this su rv e y w ould y ie ld expen diture data s u fficie n tly r e lia b le o r p r e c is e to r e p r e s e n t a ll m anu factu rin g e s ta b lish m en ts fr o m w h ich the sam ple was draw n o r to be u sed fo r p u r p o s e s oth er than the lim ite d on es fo r w h ich the study w as planned. On the p u re ly m e th o d o lo g ic a l p r o b le m s , the B u reau o f L a b o r S ta tistics w anted to find out, w ithin the lim ita tio n s o f a sin gle su rvey n e c e s s a r ily r e s tr a in e d in its dem ands upon e m p lo y e r c o o p e ra tio n and the B u r e a u s r e s o u r c e s : 1. W hether expen ditu re r e c o r d s a re m aintained; 2. W hether tim e r e c o r d s fo r ce rta in ite m s a re m a in tained; 3. How fre q u e n tly th ese expen diture and tim e r e c o r d s a re a g g re g a te d o r su m m a riz e d by the com p an y; 4. The w illin g n e ss o f e m p lo y e r s to re sp o n d to an in q u iry co n ce rn in g r e c o r d s and e x p e n d itu re s; 5. How e m p lo y e r s ca lcu la te o r e stim a te ex p en d itu res in the a b s e n ce o f a ctu al ex pen ditu re r e c o r d s ; 6. W hether e m p lo y e r s co u ld and w ould supply actu a l o r e stim a te d annual expen diture to ta ls fo r s e le c t e d ite m s ; 7. W hether ca lcu la te d o r e stim a te d fig u r e s a re r e lia b le in the a g g re g a te ; 8 0 How th ese p r a c t ic e s d iffe r la rg e and sm a ll co m p a n ie s , com p a n ie s , etc •; am ong in d u s trie s , union and nonunion 10 9© W h i c h w a y s of presenting expenditure data are feasible, and 10, If expen ditu re su rv e y s a re fe a s ib le , can they be con d u cted , in w h ole o r in p art, by m ean s o f m a il s u r v e y s . M ethod B a s ic to the B u r e a u ^ a p p ro a ch w e r e s e v e r a l co n s id e r a tio n s o f s p e c ia l im p o rta n ce to the B u rea u , but p erh a ps not o f equal im p o rta n ce to oth er o rg a n iz a tio n s having an in te re s t in expen ditu re data. The B u rea u is p r im a r ily c o n c e r n e d with the d evelop m en t o f s ta tis tics on ex p en d itu re s in a fo r m co n s iste n t with its data on o ccu p a tio n a l wage ra te s and a v e ra g e h o u rly and w eek ly e a rn in g s . T his m ean t, am ong oth er th in g s, that ( l ) the study w ould deal with p ro d u ctio n and r e la ted w o r k e r s on ly ra th er than with a ll e m p lo y e e s ; (2) the o b je c t o f ultim ate expen ditu re su rv e y s w ould be to estim a te ex p en d itu res in te r m s o f cen ts p er h ou r, p e rce n t o f p a y r o ll, and sim ila r a v era gin g r a tio s ra th er than in a g g re g a te d o lla r v o lu m e ; (3) it w ou ld be s u ffi cien t to co n ce n tra te on ex p en d itu res fo r s p e c ific ty p es o r com b in a tion s o f su p p lem en tary re m u n e ra tio n ra th er than on ta llt su p p lem en tary e x p e n d itu re s, a co n ce p t w h ich , at the p re se n t tim e , d e fie s d e fin i tion ; (4) the su rv e y a p p ro a ch w ould be p r in c ip a lly on an esta b lish m e n t ra th er than on a com p an y b a s is ; and (5) the study w ou ld be lim ite d to m anufacturin g in d u s trie s , thus a voidin g the addition al c o m p le x itie s e x p e cte d fr o m c o v e r a g e o f nonm anufacturing in d u s tr ie s . It w a s, h ow e v e r , a ls o im p orta n t to r e c o g n iz e that the r e s o u r c e s a v a ila b le fo r the study w e r e r e la t iv e ly sm a ll; that the su rv e y w ould have to be c o n ducted by m a il ra th er than by fie ld v is it; that the am ount o f in fo r m a tion sought w ould have to be lim ite d — in sh o rt, that the su rv e y m ight not y ie ld c o n c lu s iv e data on the p r o b le m s studied n or w h olly r e lia b le data on m any a s p e cts o f th ese p r o b le m s . The o b je c t iv e s and m e ch a n ic s o f the study and m any o f its lim ita tio n s a re im p lic it in the q u estion n a ire d e v ise d by the B u reau , w hich is re p r o d u c e d , with a ccom p a n yin g in s tr u ctio n s , in the a p p e n d ix ,1 The d efin ition s o f the co n c e p ts and te r m s u sed a re con ta in ed in the in s tr u ctio n s; th ese should be co n s u lte d fr e e ly in read in g this r e p o r t and in terp re tin g the data. It m ay be helpful at this point to ex p la in so m e o f the r e a s o n ing and d e c is io n s that went into the d esig n and sco p e o f the q u e stio n n a ir e . A m a jo r p r e m is e , o f c o u r s e , w as that the lo n g e r and m o r e d ifficu lt a m a il q u estion n a ire w a s, the p o o r e r w ou ld be the r e s p o n s e ,2 1 The B ureau r e c e iv e d a s s is ta n c e fr o m som e m anagem ent and union re p r e s e n ta tiv e s in d raftin g the q u estion n a ire and the in s tr u c tio n s . B y B ureau m a il q u estion n a ire sta n d ard s, the q u e stio n n a ire u sed w as both long and d iffic u lt. 11 1. P ro d u ctio n and R ela ted W o r k e r s .— The d efin ition is id e n tic a l with that used by the B u reau fo r its re g u la r m onthly and annual p r o d u c tio n -w o r k e r e m p loy m en t s e r ie s fo r m a n u factu rin g in d u strie s and by oth er G ov ern m en t a g e n c ie s . A lthough data co v e r in g a ll e m p lo y e e s (in clu d in g o f f ic e , s u p e r v is o r y , and e x e cu tiv e p e rs o n n e l) m ay be e a s ie r to obtain , p a r tic u la r ly fo r such ite m s as p e n sio n and in su ran ce ex p e n d itu re s, oth er p r o b le m s w ould be r a is e d . E xpenditure ra tio s applying to a ll e m p lo y e e s w ould have doubtful s ig n ifica n ce in the con text o f the B u re a u , s w o rk in wage ra te s and e a rn in g s and the u ses to w h ich th ese data a re put. Som e re sp o n d e n ts o ffe r e d oth er su g g estion s on c o v e r a g e , su ch as h o u rly ra te d w o r k e r s , w o r k e r s c o v e r e d by c o lle c t iv e b argain in g a g re e m e n ts , o r a ll e m p lo y e e s c o v e r e d by the F a ir L a b o r Standards A c t . 2 . G r o s s P a y r o ll (I I - A ) . — A s d efin ed , g r o s s p a y r o ll in clu d es the e x p e n d itu r e s 'fo r a ll item s o f su p p lem en tary re m u n e ra tio n fo r w hich data a re re q u e ste d , with the e x ce p tio n o f p e n sio n , in s u ra n ce , and le g a lly re q u ir e d p a y m e n ts0 Since it is e x ce p tio n a lly d ifficu lt to define such co n ce p ts as ,!stra ig h t-tim e p a y roll*1 o r " p a y r o ll fo r h ou rs w o r k e d 1* in such a way as to ex clu d e a ll p o s s ib le ty p es o f su p p lem en tary r e m u n era tion , the B u rea u c o n s id e r e d it m o re fe a s ib le to a sk fo r g r o s s p a y r o lls . If r e q u ir e d , ex p en d itu res fo r the p a y r o ll ite m s c o v e r e d in the q u estion n a ire cou ld be dedu cted fr o m g r o s s p a y r o lls to obtain a u n iform na dju sted payroll** fig u r e . 3. T otal M a n -H ou rs (I I -B ). — A s with g r o s s p a y r o ll, tota l m a n -h o u rs include the h ou rs fo r w h ich ex p en d itu res such as v a ca tio n pay, h olid a y pay, and s ic k le a v e pay w e re in c u r r e d . A lthough the te rm **hours a ctu a lly worked** has b een used in som e p riv a te e x p e n d i ture s u r v e y s , the sam e d iffic u ltie s w ould a r is e in defining this t e r m as in defining s tra ig h t-tim e p a y r o ll. M o re u n ifo rm r e s u lts co u ld be obtained by re q u e stin g in fo rm a tio n on total v a ca tio n m a n -h o u rs paid fo r and taken ( i l l - A - 2 ) ? total h olid a y m a n -h o u rs paid fo r but not w ork ed (H I -B -2 ), and tota l s ic k -le a v e h ou rs paid fo r (lI I - C - 2 ) ; the sum o f th ese h ou rs co u ld be dedu cted fr o m total m a n -h o u rs to a r r iv e at an a d ju sted m a n -h o u rs fig u re w h ich , although not to be d efin ed as "h o u rs a ctu a lly w orked,** p ro v id e s a b a s is fo r ca lcu la tin g a c e n t s p e r -h o u r ra tio with s p e c ific m eaning in expen ditu re a n a ly s is . 4 . P lant P r a c t ic e s ( i l l ) . — This se ctio n o f the q u e stio n n a ire w as in clu d ed fo r two r e a s o n s : ( l ) T o p ro v id e a b a s is fo r d etectin g o m is s io n s o r g r o s s e r r o r s in the expen diture data su pplied by the re sp o n d e n ts, and (2) to p ro v id e a b a s is fo r explain in g som e o f the v a ria tio n s am ong co m p a n ie s in expen ditu res fo r a s p e c ific item , o r , as in the ca s e o f in su ra n ce and p en sion p la n s, fo r v a ria tio n in r e co r d k e e p in g p r a c t ic e s . In form ation w as re q u e ste d on actual p r a c t ic e s in 1953 ra th er than on p o lic y . Knowing that com p an y p o lic y on paid v a ca tio n s, fo r e x a m p le , was to p ro v id e 1 w eek fo r 1 y e a r o f s e r v ic e , 2 w eek s fo r 5 y e a r s , and 3 w eek s fo r 15 y e a r s , th row s c o n s id e r a b ly le s s ligh t on actual ex p en d itu res than knowing how m any w o r k e r s r e c e iv e d 1 w eek , 2 w e e k s, and 3 w e e k s. 12 The am ount o f in fo rm a tio n re q u e ste d in this se ctio n , h ow e v e r , is su b sta n tia lly le s s than is n eed ed to d e te ct a ll e r r o r s in re p o rtin g and, e s p e c ia lly , to explain fu lly the v a ria tio n s in e x p e n d i ture le v e ls am ong esta b lish m en ts,. At b e s t, on ly ce r ta in v a r ia b le s can be a cco u n te d f o r , p a r tic u la r ly in in su ra n ce and p en sion e x p e n d i tu res. The am ount o f in fo rm a tio n r e q u ir e d to ex p la in with r e a s o n able a dequ acy the v a ria tio n s am ong co m p a n ie s in th ese ex p en d itu res is p ro b a b ly beyond the bounds o f any sin gle survey,, 5. S e le cte d Item s o f Su pplem entary R em u n era tion ( lV ) o— Th item s o f su p p lem en tary re m u n e ra tio n s e le c te d fo r study w e r e : P a id v a ca tio n s P a id h olid a y s P a id s ic k le a v e P r e m iu m pay fo r o v e r tim e — d a ily , w eek ly , o r fo r w o rk on s p e c ific days as su ch 3 P r e m iu m pay fo r w o rk on h olid a y s Shift p re m iu m pay P e n s io n plans In su ra n ce , health, and w e lfa re plans L e g a lly r e q u ir e d p aym en ts— Old A ge and S u rv iv o r s In su ra n ce, u n em p loym en t c o m p en sa tion , w o r k m e n ^ co m p e n sa tio n , and State t e m p o r a r y d isa b ility in s u r a n c e . 3 The paym ent o f tim e and o n e -h a lf fo r w o r k in e x c e s s o f 40 h ou rs in the w ork w eek is re q u ir e d by the F a ir L a b o r Standards A c t fo r w o r k e r s en ga ged in in te rsta te c o m m e r c e o r in the p ro d u ctio n o f good s fo r in te rsta te c o m m e r c e . The P u b lic C o n tra cts A ct, w h ich a p p lies to w o rk on G overn m en t c o n tra cts in e x c e s s o f $ 1 0 ,0 0 0 , a ls o c a lls for tim e and o n e -h a lf fo r h ou rs in e x c e s s o f 8 p er day. T hus, w eek ly o v e r tim e pay, and w h ere a p p lica b le , d aily o v e r tim e pay, m ay w a rran t c o n s id e r a tio n as nle g a lly re q u ir e d p a y m e n t s .11 H o w e v e r, c o l le c tiv e b a rg ain in g a g re e m e n ts and com p an y p e rs o n n e l p r a c t ic e have m o d ifie d the d efin ition o f 40 h ou rs o f w o rk as e x p r e s s e d in FL SA by su bsta n tia lly lib e r a liz in g the d efin ition o f !,h ou rs w o r k e d ” fo r p u rp o se s o f qu alifyin g fo r o v e rtim e p a y m en ts. F o r e x a m p le , h o lid a y s and e x cu se d lea v e a re w id e ly cou n ted as tim e w ork ed fo r o v e r tim e pay p u r p o s e s . M o r e o v e r , the p r a c t ic e o f paying p re m iu m ra te s fo r a ll h ou rs w ork ed on Saturdays and Sundays, r e g a r d le s s o f the nu m ber w o rk e d during the w eek , is b e co m in g m o r e p re v a le n t. A ssu m in g that it is d e s ir a b le to a cco u n t fo r the lfle g a lly r e q u ir e d 11 p o rtio n o f o v e r tim e pay, it w ou ld be n e c e s s a r y , but v irtu a lly im p o s s ib le in a su rv e y o f this n a tu re, to se p a ra te fr o m the v a rie ty o f o v e r tim e pay p r a c t ic e s in A m e r ic a n in d u stry that p o rtio n w h ich is b a se d s t r ic t ly on G o v e r n m ent re g u la tio n s . 13 O b v io u s ly , this is a r e s t r ic t e d lis t . Under the a ssu m p tion that the s e le c tio n o f ite m s w ou ld have to be lim ite d so as not to o v e r bu rd en the e m p lo y e r re sp o n d e n ts, th ese ite m s w e r e s e le c t e d b e ca u se they a re am ong the m o s t co m m o n su p p lem en ta ry re m u n e ra tio n ite m s ; they a ccou n t fo r a la r g e p a rt o f total su p p lem en ta ry e x p e n d itu re s, h ow ev er such a tota l is d efin ed ; and, with the e x ce p tio n o f le g a lly r e q u ir e d p a y m e n ts, they a re su b je ct to c o lle c t iv e b a rg a in in g . The B u r e a u ^ w age and in d u stria l re la tio n s studies have fo r so m e tim e c o v e r e d th ese ite m s in te r m s o f com p an y and union p o lic ie s ; h e n ce , it se e m e d lo g ic a l to venture into the fie ld o f expen ditu re study in te r m s o f th ese p r a c t ic e s . Som e p riv a te su rv e y s have u tiliz e d a lo n g e r lis t o r have r e lie d upon the e m p lo y e r to a cco u n t fo r a ll su p p lem en ta ry e x p e n d i t u r e s , as he w ou ld defin e them ; s o m e , in clu d in g the su rv e y s o f the C h a m b er o f C o m m e r c e o f the United S tates, e ith e r have om itted p re m iu m pay o f a ll ty p es fr o m the sco p e o f the p r a c t ic e s stu d ied , o r have p re s e n te d p re m iu m pay ex p en d itu res a pa rt fr o m oth er e x p e n d i tu res. Since the te r m nfrin g e b e n e fit s " has b een u se d in oth er s u r v e y s and m ight be a p p lied to this study b e ca u se of the co n v e n ie n ce o f that e x p r e s s io n , it is im p orta n t to e m p h a siz e that in the s e l e c tion o f th ese ite m s the B ureau did not intend to im p ly that they should be c o n s id e r e d as "fr in g e b e n e fit s " o r even as " b e n e fit s " to w o r k e r s . 4 F o r this study, the ite m s s e le c te d re p r e s e n t typ es o f com p a n y e x p e n d i tu res going to w o r k e r s , o r p aid on th eir b e h a lf, w h ich w ou ld not be a cco u n te d fo r in s tra ig h t-tim e w age ra te s . The s e le c te d ite m s p re s e n te d no unusual p r o b le m s o f d e fi n ition , e x ce p t fo r the o v e rla p betw een h olid a y pay and p re m iu m pay fo r h olid a y w o r k . Since it was n e c e s s a r y to sep a ra te ex p en d itu res in c u r r e d through the r e co g n itio n o f p aid h o lid a y s and th ose re su ltin g fr o m w o rk on p aid h o lid a y s , it was a ls o n e c e s s a r y to define h o lid a y p re m iu m pay ex p en d itu res as the am ount p a id in e x c e s s o f double tim e (s e e in s tr u c tio n s ). F o r in s u ra n ce , h ea lth , and w e lfa r e p la n s , ra th er than g r o s s ex p en d itu res w e re re q u e ste d (s e e in s tr u c tio n s ). F o r this c a t e g o r y and fo r p e n s io n s , c o s t s in c u r r e d b y the e s t a b lis h m en t in the a d m in istra tio n o f th ese plans w e r e e x clu d e d , p a r tly b e ca u se o f the d ifficu lty o f obtaining in fo rm a tio n (this a d m in istra tiv e w o rk is fre q u e n tly tie d in with oth er p e r s o n n e l fu n ction s) and p a r tly b e c a u s e oth er p r a c t ic e s studied a ls o entail a d m in istra tiv e c o s t s w h ich a re not a cco u n te d fo r in the expen ditu re fig u re s r e q u e s te d . A nu m ber o f m in o r c la s s ific a t io n p r o b le m s a r is in g fr o m the em p h a sis on ex p en d itu res f o r s e le c te d ite m s ra th e r than f o r a ll su p p lem en ts co m b in e d w e r e ig n o re d in a ch o ic e b etw een attaining a h ig h er d e g r e e o f p r e c is io n in d efin ition and fu rth e r c o m p lic a tio n o f the q u e stio n n a ire . T his w as the c a s e in such in sta n ce s o f ov erla p p in g 4 It shou ld be n oted that the te r m s " f r in g e " and " b e n e fit s " not ap p ea r in the q u e stio n n a ire and in s tr u c tio n s . do 14 ex p en d itu re c la s s ific a tio n s as sh ift p re m iu m s in v a ca tio n and holidayp ay and o v e r tim e on h o lid a y s , and in p r o b le m s p e c u lia r to e s ta b lish m e n ts on continuous o p e ra tio n s . 6. M e a s u r e s to be C om p u ted . — F o r e a ch o f the ite m s su p p lem en ta ry re m u n e ra tio n c o v e r e d , the fo llo w in g com p u tation s w e r e planned fo r e a ch esta b lish m en t: P e r c e n t o f p a y r o ll Item expen ditu re G r o s s p a y r o ll C e n ts -p e r -p a y r o ll hour Item expen diture T o ta l m a n -h ou rs C e n ts -p e r -a d ju s te d -p a y ro ll h ou r D o lla r s p e r y e a r p e r e m p lo y e e ^ ^qq Item e x p e n d it u r e _____ T o ta l m a n -h ou rs (le s s v a ca tio n , h o lid a y , and s ic k le a v e h o u rs) Item expen ditu re________ A v e r a g e n u m b er o f p ro d u ctio n and re la te d w o r k e r s fo r the y e a r F o r p u rp o s e s o f a n a ly s is , c e r ta in addition al co m p u ta tio n s, b a s e d on the p a y r o ll and plant p r a c t ic e data r e q u e s te d , w e r e planned. T h e se in clu d ed: A v e r a g e v a ca tio n p e r e m p lo y e e , a v e ra g e v a ca tio n p e r e m p lo y e e r e c e iv in g p a id v a ca tio n , shift p re m iu m h ou rs as a p e r c e n t o f tota l p a y r o ll h o u r s , and g r o s s a v e ra g e h o u rly e a rn in g s . 7. E stim a tin g E x p e n d itu re s. — In a d ep a rtu re fr o m usu al B u rea u p r a c t ic e , the re sp o n d e n ts, in the a b se n ce o f a ctu a l r e c o r d s , w e r e re q u e s te d to estim a te o r ca lcu la te ex p en d itu res fo r p ro d u ctio n and re la te d w o r k e r s and to in d ica te the b a s is upon w h ich th ese e s t i m a te s w e r e m a d e . T h is w as done fo r tw o r e a s o n s : (1) T o find out how co m p a n ie s e stim a te d ex p en d itu res in the a b se n ce o f expen diture r e c o r d s , and (2) to b e able to id en tify and to evaluate the data w h ich w e r e e stim a te d . U ndoubtedly, this d e v ice in c r e a s e d the r e s p o n s e to the su rv e y ; m a n y co m p a n ie s , h o w e v e r , re m a in e d relu cta n t to attem pt su ch e stim a tio n . The Sam ple D esig n The d e c is io n to lim it the study to m a n u factu rin g in d u s tr ie s , and to c o v e r a ll m a n u fa ctu rin g in d u strie s (ra th e r than o n e ), w as m a d e to obtain the m a xim u m in fo rm a tio n co n ce rn in g m e th o d o lo g ic a l p r o b le m s fo r the m in im u m in v estm en t o f r e s o u r c e s . The in c lu s io n o f nonm anu fa ctu rin g in d u strie s w ou ld have sp re a d the s u r v e y to o thinly and w ou ld have m a de it n e c e s s a r y to c o n s id e r a m ultitude o f p r o b le m s p e c u lia r to such in d u strie s as r e ta il tra d e and c o n s tr u c tio n . On the oth er o 15 hand, lim itin g the s u r v e y to one m a n u fa ctu rin g in d u stry , o r to a seg m en t o f an in d u stry , w h ile p o s s ib ly p ro d u cin g m o r e c o n c lu s iv e data, w ou ld le a v e to o la r g e an u n e x p lo re d a r e a . The sa m p le o f e sta b lish m e n ts to w h ich the q u estion n a ire was sent w as s e le c t e d to r e p r e s e n t a ll s iz e g rou p s above the m in im u m s iz e lim it o f 20 e m p lo y e e s set fo r the s u r v e y , a ll g e o g ra p h ic r e g io n s , and a ll m a n u fa ctu rin g in d u s tr ie s . Starting w ith a lis t o f e sta b lish m e n ts fo r e a ch sta te , the m e th o d fo llo w e d w as to s e le c t , on a s y s te m a tic b a s is , the n u m b er o f e sta b lish m e n ts re q u ir e d s o that e a ch s iz e g rou p w as r e p r e s e n te d in p r o p o r tio n to its r e la tiv e im p o rta n ce in te r m s o f em p lo y m e n t, as fo llo w s : Size o f esta b lish m e n t Sam pling rate A ll E v e r y 2d e sta b lish m e n t E v e r y 8th esta b lish m e n t E v e r y 15th esta b lish m e n t E v e r y 36th e sta b lish m e n t E v e r y 90th e sta b lish m e n t E v e r y 360th esta b lish m en t Under 20 e m p l o y e e s __________— Not c o v e r e d 1 0 .0 0 0 o r m o r e e m p lo y e e s — - 2,500 - 9,999 e m p lo y e e s —— 1.000 - 2,499 e m p l o y e e s ____ 500 - 999 e m p l o y e e s _____ — 250 - 499 e m p lo y e e s .________ — 100 - 249 e m p lo y e e s _________ _ 20 - 99 e m p l o y e e s ___________ _ The s iz e o f the sam ple resu ltin g fr o m this d esig n (a p p r o x i m a te ly 1, 100 e sta b lish m e n ts) w as such that the rate o f r e s p o n s e , a k ey p r o b le m to b e stu d ied , co u ld be a s c e r ta in e d fo r the v a rio u s c o m ponent g r o u p s . In p r in c ip le , if a ll e sta b lish m e n ts w e r e to re tu rn u sa b le and r e lia b le q u e s tio n n a ire s , e stim a te s o f p r a c t ic e s and ex p e n d i tu re le v e ls , re a so n a b ly re p re se n ta tiv e o f m a n u fa ctu rin g a s a w h o le , co u ld b e d e r iv e d . H o w e v e r, sep a ra te e stim a te s fo r ea ch p a r tic u la r in d u stry w ou ld not be p r a c t ic a b le with a sa m p le o f this s iz e . Such a r e s p o n s e , o f c o u r s e , w as not e x p e c te d . 5 What w as h op ed fo r w as a retu rn o f about 500 u sa b le q u e s tio n n a ire s , b r o a d ly r e p re s e n ta tiv e o f the s a m p le , w h ich w ou ld p ro v id e an adequate b a s is fo r exam in in g the p r o b le m s to w h ich the study w as d ir e c te d . The co n c lu s io n s a r r iv e d at m igh t b e tentative but they w ou ld r e p r e s e n t an advance o v e r p r e s e n t k n ow led g e. T his rate o f r e s p o n s e , it w as b e lie v e d , w ou ld be s u f fic ie n t to r e fle c t r e la tiv e ly u n com m on situ a tion s. The nature and c h a r a c t e r is t ic s o f the r e sp o n se and n o n re sp o n se a re e x a m in ed la t e r . The m eth od o f s e le c tio n y ie ld e d a nu m ber o f esta b lish m e n ts o f the sam e m ultiplant com pan y o r a sin gle e sta b lish m e n t o f a m u lti plant com p a n y . P r e s u r v e y d is c u s s io n s with a n u m ber o f m anagem ent 5 The tech n iqu es n o r m a lly u sed in the B u re a u ’ s in d u stry w age su rv e y s con d u cte d by m ean s o f m a il q u e s tio n n a ire s , in w h ich non resp on d in g e sta b lish m e n ts a re c o v e r e d b y a ctu al plant v is it s , w e r e not a p p lied to this study b e ca u s e o f the c o s t s .in v o lv e d ahd the lim ite d o b je c tiv e s o f the study. 16 represen ta tives had pointed to the p roba bility that m any multiplant com panies w ould have exceptional difficu lty in providing this type o f in form ation , p a rticu la rly on insurance and pension expen ditu res, fo r a sin gle plant o r an a rb itra ry com bination o f plants. Allow ing such com panies the option o f providing inform ation fo r all plants com bined, it was b e lie v e d , would facilitate re sp o n se . In the instance o f a s e lection o f a 8ingle plant, this was a ccom p lish ed by the follow ing in stru ction in the b ox heading of the questionnaire: In the ca se of m ultiplant com p an ies, a rep ort cov erin g the plant identified on the accom panying le tte r would be p r e fe r r e d . H ow ever, m ultiplant c o m panies m ay rep ort for all plants if r e co r d s are m ain tained on that b a s is . W hichever alternative is s e le c te d , it is essen tial that all o f the inform ation supplied relate to the sam e unit. When m o re than one plant o f a com pany was se le cte d , a fly e r was attached to the questionnaire with the follow ing instruction: A separate rep ort fo r each plant is p r e fe r r e d . Ify ou r supplem entary rem uneration p rog ra m s and p r a c t ic e s , as w e lla s the types o f r e co r d s kept, are the sam e in each plant, and i f you fe e l that a single rep ort fo r one plant would be represen tative of your com pany, then such a rep ort fo r one plant m ay be furnished. If expenditure r e co r d s on supplem entary em ployee rem u m eration item s are kept on a com panyw ide basis, and i f you p r e fe r to m ake one rep ort coverin g all plants o f the com pany, such a rep ort w ill be a ccep ta b le. The questionnaires w ere m ailed in A p ril 1954, which allow ed am ple tim e fo r com panies to have com p leted their norm al su m m a ri zation or review of expenditures fo r the calendar yea r 1953. In a ccord a n ce with usual Bureau p ra ctice in m ail wage su r v e y s , a selected group o f key com panies w ere visited by Bureau r e p resen tatives fo r the purpose o f putting the questionnaire in the hands of the appropriate o ffic ia l, explaining the background and purpose o f the study, and working out arrangem ents fo r sin gle-plan t or m u lti plant reportin g. One followup letter was sent to all nonrespondents. P re lim in a ry editing of the returns n ecessitated a num ber o f requests fo r cla rifica tio n o f data or for om itted data. Unfortunately, due to time and staff lim itation s, this could not be done in all instances of o m is sions o r o f apparent d isc r e p a n cie s , as the follow ing analysis w ill show. The findings o f the survey are d iscu sse d in this rep ort under three m ain headings: C h a ra cteristics of the R espon se; E stablishm ent R e co rd s and R eporting P r a c tic e s ; and F a ctors A ffecting E xpenditure L e v e ls . 17 C h a r a c t e r is t ic s o f the R e s p o n s e The fe a s ib ilit y o f a m a il q u estion n a ire s u r v e y o f this type should be evalu ated with r e s p e c t to: ( l ) R ate o f r e s p o n s e , o r the p r o p o r tio n o f the co m p a n ie s s o lic it e d fo r co o p e r a tio n w h ich retu rn ed u sa b le q u e stio n n a ire s; (2) b a la n ce , o r the stru ctu re o f the r e s p o n s e a s co m p a r e d with the stru ctu re o f the o r ig in a l s a m p le , and (3) the r e lia b ilit y o f the data a s to the m anner in w hich q u estion s w e re in te r p r e te d , the a b ility o f the resp on d en ts to p ro v id e the type o f in f o r m ation re q u e ste d , and the c a r e e x e r c is e d in com p u tin g o r co m p ilin g the data. B e ca u se no fix e d standards e x is t a g a in st w hich th ese f a c to rs can be m e a s u re d in a study o f this ty p e, eva lu a tion s m u st n e c e s s a r ily be ten ta tive. R ate o f R e sp o n se The su r v e y y ie ld e d a r e sp o n se rate o f 50 p e r c e n t , o r 550 retu rn s out of 1, 105 solici/ted . The rate o f r e s p o n s e h e r e is m e a s u red by the u sa b le q u e stio n n a ire s r e c e iv e d . A u sa b le q u estion n a ire was not n e c e s s a r ily a co m p le te o n e . The le tte r a cco m p a n y in g the q u e stio n n a ire , and the b o x heading on the q u e stio n n a ire it s e lf, u rg ed com p a n ies to a n sw e r as m any q u estion s as p o s s ib le and to in d ica te the re a so n s fo r th e ir in a b ility to a n sw er o th e r q u e s tio n s . M any c o m pan ies thus retu rn ed p a r tia lly co m p le te d q u e s tio n n a ir e s . T hese r e turns w e re c la s s ifie d as u sa b le if the b a s ic data on p a y r o lls , m a n h o u rs , and e m p lo y m e n t w ere supplied and if S e ctio n IV , dealin g with r e c o r d s and ex p en d itu res fo r s e le c te d it e m s , was a n sw e re d at le a s t in p a r t. A n u m b er o f q u e stio n n a ire s w e re e lim in a te d b e ca u s e o f m u ltip le d is c r e p a n c ie s o r o m is s io n s in the data re q u e ste d , w h ich in d ica ted in a b ility on the p a rt o f the re sp o n d e n t to supply r e lia b le in fo r m a tio n . The rate o f retu rn b y in d u stry grou p (table l) r e v e a le d r e la tiv e ly lo w r e s p o n s e le v e ls fo r som e g ro u p s , n ota b ly th ose in w hich s m a ll e sta b lish m e n ts p re d o m in a te , e . g . , a p p a re l m a n u fa ctu re rs (21 p e rce n t) and lu m b e r and w ood p ro d u cts co m p a n ie s (29 p e r c e n t ). V a r ia tion s am ong s p e c ific in d u strie s w ithin in d u stry g rou p s w e re o f c o u r s e m uch w id e r than these data sh ow . H o w e v e r, the s ig n ifica n ce o f the d iffe r e n c e s in re s p o n s e ra te s am ong in d u s tr ie s , in s o fa r as an a ll-m a n u fa ctu rin g s u r v e y is c o n c e r n e d , is c e n te r e d in the tota ls fo r 6 T o fa c ilita te the a n a ly sis o f r e s p o n s e ra te s and the su b sta n tive data r e p o r te d , the m anufacturin g in d u strie s c o v e r e d w e r e d iv id ed into th ree g r o u p s , in a c c o r d a n c e with in d u stry g r o s s a v e ra g e h o u rly ea rn in gs data co m p ile d b y the B u rea u fo r the y e a r 1953. The grou p in gs w e r e e sta b lish e d , a r b it r a r ily , as fo llo w s : G roup I— le s s than $ 1 .6 5 an h ou r; G roup II— $ 1 .6 5 to $ 1 .8 9 ; G rou p III— $ 1 .9 0 and over. F o r co n v e n ie n ce in d is c u s s io n , the te rm s "lo w w a g e ,1* " m e dium w a g e ," and "high w a g e " grou p s w ill be u se d . 18 the three wage g rou p in g s into w h ich the in d u strie s w e r e c l a s s i f i e d . 6 The a v e ra g e rate o f retu rn fo r the lo w -w a g e grou p am ounted to 42 p e r c e n t a s a g a in st 54 and 55 p e r c e n t , r e s p e c t iv e ly , fo r the m e d iu m and h ig h -w a g e g ro u p s. The q u estion o f w h eth er this d iffe r e n tia l r e turn has an a p p re cia b le e ffe c t on a v e ra g e exp en d itu re le v e ls .w ill be ex a m in ed la t e r . On a re g io n a l b a s is , re tu rn s lo w e r than the a v e ra g e w e re r e c e iv e d fr o m co m p a n ie s in the South, c o m p r is in g the South A tla n tic , E a s t South C e n tra l, and W est South C en tra l States (table 2 ). On the w h ole, v a ria tio n s in r e s p o n s e am ong re g io n s w e re not la r g e . H ow e v e r , a r e la t iv e ly lo w rate o f re s p o n s e fr o m co m p a n ie s with plants in m o r e than one re g io n was e n co u n te re d . T h is a p p e a re d to be due to the d iffic u ltie s o f re p o rtin g in m ultiplant situ ation s and (p erh a ps a re la te d fa c to r ) to the u n w illin gn ess o f s e v e r a l la rg e m u ltip lan t c o m p an ies to p a r tic ip a te in the s u r v e y . A lthough the lo w r e s p o n s e ra te (25 p e rce n t) fo r e s t a b lis h m ents em p loy in g fe w e r than 100 p ro d u ctio n w o r k e r s , as show n m table 3, m ay r e fle c t the in a b ility o f s m a ll co m p a n ie s to r e p o r t in f o r m ation o f the type re q u e ste d , it c o n fo r m s to the usual e x p e r ie n c e o f a g e n cie s con d u ctin g m a il q u estion n a ire s u r v e y s . S ig n ifica n tly , h o w e v e r , the r e s p o n s e fr o m plants em p loy in g b etw een 100 and 500 w o r k e r s (50 p e rce n t) w as c lo s e to the a v e ra g e fo r the la r g e r e sta b lis h m e n ts . M ultiplant R ep ortin g M ultiplant co m p a n ie s resp on d in g to the q u estion n a ire had the op tion o f p ro v id in g in fo rm a tio n fo r a sin gle plant (se p a ra te r e p o r ts i f m o r e than one plant w as s e le c te d in the sa m p le) o r o f p ro v id in g data fo r a co m b in a tio n o f plants o r fo r a ll p la n ts. A lthough it was not p o s s ib le to id en tify a ll o f the e sta b lish m e n ts in the sa m p le w h ich w e re p a rt o f a m ultiplant o rg a n iz a tio n , it w ould a pp ea r fr o m the r e turns that m ultiplant co m p a n ie s p r e fe r r e d co m b in a tio n re p o rtin g to p rov id in g data f o r s e le c te d individual p la n ts. O f the 550 u sa b le q u e s tio n n a ir e s , 96 c o v e r e d m o r e than 1 plant— 3 7 c o v e r e d 2 p la n ts, 38 c o v e r e d fr o m 3 to 10 p la n ts, 9 c o v e r e d m o r e than 10 p la n ts, and 12 c o v e r e d an u n rep orted quantity. O nly 16 m ultiunit co m p a n ie s f u r n ish ed sep a ra te plant r e p o r t s — 13 p ro v id e d 2 r e p o r t s , and 3 p r o v id ed 3 r e p o r t s .7 7 A s a co n se q u e n ce o f m ultiplant o r com p an yw id e re p o rtin g in a substantial n u m b er o f c a s e s , the c o v e r a g e o f the su r v e y can be d e s c r ib e d p r e c is e ly n eith er in te rm s o f e sta b lish m e n ts n o r o f c o m p a n ie s. S tr ic tly sp ea k in g, the 550 sch e d u le s r e p r e s e n t 550 r e p o r t ing units (w hether com p a n y o r e sta b lish m e n t). H o w e v e r, s in ce the bulk o f the retu rn s r e p r e s e n t e s ta b lis h m e n ts , that te rm is u se d in this r e p o r t fo r sake o f c o n v e n ie n c e . TABLE 19 1 . ---- R a te o f r e t u r n o f u s a b l e q u e s t i o n n a i r e s b y i n d u s t r y g r o u p U s a b le r e tu r n s N um ber s o lic ite d N um ber P ercen t 1, 105 550 50 G r o u p I ------------------------------------------------------------------------------- _ F o o d a n d k i n d r e d p r o d u c t s _______________________ _ T o b a c c o ______ ____ _____ __________ ___ _____ ____________ T e x t i l e s _ _ _____________________________________________ A p p a r e l ___________ _______________________________________ L u m b e r a n d w o o d p r o d u c t s ___ _ ______________ _ F u r n it u r e a n d f i x t u r e s ____ ____ ________ ______ _ L e a t h e r a n d l e a t h e r p r o d u c t s _______ _____________ _ M i s c e l l a n e o u s m a n u f a c t u r i n g _______________________ 426 96 8 98 85 42 28 28 41 180 44 6 51 18 12 15 16 18 42 46 75 52 21 29 54 57 44 G r o u p I I _________ _______________ ____ ______________ ________ P a p e r and a llie d p r o d u c ts ____ ____________________ C h e m i c a l s a n d a l l i e d p r o d u c t s ______________________ S t o n e , c l a y , a n d g l a s s p r o d u c t s ____________________ F a b r i c a t e d m e t a l p r o d u c t s _________________________ E l e c t r i c a l e q u i p m e n t __ __ _ --------------------------------P r o f e s s i o n a l a n d s c i e n t i f i c e q u i p m e n t ____________ 318 41 52 48 80 71 26 171 29 27 25 41 35 14 54 71 52 52 51 49 54 G r o u p III __ ____________________ __________________________ O r d n a n c e a n d a c c e s s o r i e s ___________________________ P r i n t in g a n d p u b l i s h i n g _______________________________ P e t r o l e u m a n d c o a l p r o d u c t s _______________________ R u b b e r p r o d u c t s ________________ _______ ____________ _ P r i m a r y m e t a l i n d u s t r i e s ______ ____ ____________ M a c h i n e r y ( e x c e p t e l e c t r i c a l ) __________ ___________ T r a n s p o r t a t i o n e q u i p m e n t __ ------------------------------------ 361 9 45 19 12 74 120 82 19 9 5 16 6 6 50 68 48 55 56 36 32 50 68 57 59 A ll in d u s t r ie s 1 F or in d u s t r y g r o u p in g s , see fo o tn o te 6, page 17. T A B L E 2 . — R a te o f r e tu r n o f u s a b le q u e s t io n n a ir e s b y r e g io n R e g io n U s a b l e :r e t u r n s N um ber s o lic ite d A l l r e g i o n s ------------------------------------------ 1, 105 550 50 ------------------------------ _ I n t e r r e g io n a l N e w E n g l a n d _________________________ M id d le A t l a n t i c ______________________ E a s t N o r t h C e n t r a l _____________ _ W e s t N o r t h C e n t r a l ---------- — S o u t h A t l a n t i c -----------------------------------E a s t S o u th C e n t r a l --------------------------W e s t S o u t h C e n t r a l -------------------- _ M o u n t a in __________________________ P a c i f i c ........ ................... ................. ............ 66 115 268 307 69 108 49 43 8 72 23 59 13 6 168 39 48 23 16 3 35 35 51 51 55 57 44 47 37 38 49 T A B L E 3 . ---- R a t e o f r e t u r n o f u s a b l e q u e s t i o n n a i r e s S i z e o f u n it c o v e r e d A l l u n its ----------------------------- 2 0 t o 99 e m p l o y e e s --------------------------------------100 t o 4 9 9 e m p l o y e e s ---------------------------------------5 0 0 t o 99 9 e m p l o y e e s ----------- ----------- -------------------1 , 0 0 0 to 4 , 9 9 9 e m p l o y e e s -----------------------” 5 , 0 0 0 e m p l o y e e s a n d o v e r ------------------------------------- P ercen t N um ber b y s i z e o f u n it c o v e r e d U s a b le re tu rn s N um ber s o lic ite d N um ber 1 ,1 0 5 5 50 50 166 315 1 78 3 36 110 42 159 80 205 64 25 50 45 61 58 P ercen t 20 M ultiplant re p o rtin g was e s p e c ia lly p red om in a n t in the c h e m ic a ls and p r im a r y m e ta ls in d u s tr ie s . In n u m ber o f w o r k e r s c o v e r e d , the m ultiplant r e p o r ts a cco u n te d f o r a d is p ro p o r tio n a te sh a re o f the total r e s p o n s e . T h is fa c t o r am ong o th e rs p r e c lu d e d the p re se n ta tio n o f data in te rm s o f nu m ber o f w o r k e r s . O ther C h a r a c t e r is t ic s o f the R e sp o n se R equ estin g data fo r the ca le n d a r y e a r a p p e a re d to p r e s e n t r e la t iv e ly m in o r d if f ic u lt ie s .8 O nly seven r e p o r ts c o v e r e d a f is c a l p e r io d d iffe rin g fr o m the ca le n d a r y e a r . A few r e p o r ts c o v e r e d a group of w o r k e r s oth er than p r o d uction and re la te d w o r k e r s . O f th e se , the m o s t co m m o n d eviation was the c o v e r a g e o f a ll e m p lo y e e s , fo llo w e d b y “ h o u rly e m p lo y e e s 11 o n ly . T h ese q u e s tio n n a ire s , h o w e v e r , a p p e a re d to be in te rn a lly c o n sisten t with r e s p e c t to the in fo rm a tio n r e p o r te d and w e re t h e r e fo r e in clu d ed am ong the usable q u e s tio n n a ire s . The a c c u r a c y and r e lia b ilit y o f the in fo rm a tio n su p p lied a re d ifficu lt fa c t o r s to a s s e s s , as w ill be s t r e s s e d at v a rio u s points in this r e p o r t . T h is was undoubtedly a co m p le x q u estion n a ire to m any co m p a n ie s; p ro b a b ly a la r g e p a rt o f the sa m p le had n e v e r b e fo r e r e sponded to such an in q u iry co n ce rn in g ex p en d itu res fo r su p p lem en ta ry re m u n e ra tio n . M any r e s p o n s e s a p p e a re d to in d ica te that the c o o p era tin g com p a n y n o r m a lly did not co m p ile p r e c is e expen ditu re data fo r its own p u r p o s e s . In a la rg e s e n s e , t h e r e fo r e , the su rv e y was an e x p e rim e n ta l on e , both to the B u reau and to the re sp o n d e n ts, and m u st be evaluated in that l i g h t .9 The q u e stio n n a ire s w e re exa m in ed fo r in a d verten t o m is s io n s and fo r ob v iou s d is c r e p a n c ie s 0 O m is s io n o f ex pen ditu re data fo r le g a lly r e q u ir e d p aym en ts w a s, o f c o u r s e , r e a d ily d e te cte d ; in a d v e r t ent o m is s io n o f oth er expen ditu re data b e ca m e o b v iou s when the p r a c t ic e was re p o r te d to be in e ffe c t . D is c r e p a n c ie s in p a y r o ll, m a n -h o u r, and em p lo y m e n t data, and in p r a c t ic e s and expen ditu re le v e ls , w ere le s s apparent and co u ld be r e c o g n iz e d on ly when the e r r o r a p p e a re d to be la r g e . In g e n e ra l, o v e rsta te m e n t was m o re 8 The q u estion n a ire re q u e ste d data fo r the ca le n d a r y e a r 1953. H o w e v e r, if data had to be com p u ted on a n oth er b a s is , resp on d en ts w e re a sk ed to w rite in the p e r io d c o v e r e d b y the r e p o r t . R e fe r e n c e to ce rta in p r o b le m s in ca len d a r y ea r re p o rtin g w ill be m ade la te r in this r e p o r t in co n n e ctio n with le g a lly re q u ir e d p a y m e n ts. 9 In le tte r s a cco m p a n y in g q u e s tio n n a ire s , so m e co m p a n ie s e x p r e s s e d c o n c e r n about th eir own la ck o f e x a ct data. One la rg e m u l tiplant com p a n y re q u e ste d a n u m ber o f blank fo r m s in o r d e r to con d u ct its own s u r v e y am ong its m any p la n ts. O ther co m p a n ie s e x p r e s s e d an in te r e s t in a p p ro p ria te a ccou n tin g p r o c e d u r e s . 21 e a s ily d e te c te d than u n d ersta tem en t. A bout 115 le t t e r s 10 seek in g c la r ific a t io n o f data o r req u estin g om itted fig u r e s w e re sent to r e spon d en ts; a ll but a few w e r e a n sw e re d s a t is fa c t o r ily . P ro b a b ly b e ca u se o m is s io n s o r d is c r e p a n c ie s in le g a lly re q u ir e d b en efits w e re m o st re a d ily d e te cte d , th ese w e re m o st freq u en tly m en tion ed in the su p p lem en tary le t t e r s o f in q u iry , m o st of w hich c o v e r e d m o r e than one ite m . O ther lead in g s u b je cts of in qu iry w e r e (in o r d e r o f f r e quen cy) in su ra n ce ex p en d itu res, shift p r e m iu m s , p e n sio n ex p e n d itu re s, and h olid a y pay e x p e n d itu re s. A few c le a r ly q u estion a b le e n trie s on p re m iu m o v e r tim e ex p en d itu res w e r e la te r e x clu d e d fr o m the tabu la ted data. 11 The F in a l Sam ple The 550 u sa b le q u e stio n n a ire s, d is c u s s e d a b ove with r e sp ect to in d u stry , re g io n , s iz e o f esta b lish m en t, and m ultiplant c o v e r a g e , con stitu ted the sam ple upon w h ich a n a ly sis w as b a se d . It is im porta n t to exam in e the r e p re s e n ta tiv e n e s s o f th is sam ple in r e la tion to a q u estion p ertin en t to a ll expen ditu re s u r v e y s: W ere e s ta b lish m en ts with h ig h e r w a g e s, m o r e su p p lem en tary p r a c t ic e s , m o re lib e r a l p r a c t ic e s , and t h e r e fo r e la r g e r ex p en d itu res on supplem entary rem u n era tio n m o r e lik e ly than oth er e sta b lish m e n ts to resp on d to this que s tio n n a ire ? T h e re a re tw o w ays o f a p p roa ch in g th is is s u e : ( l ) By v is it ing the n on resp on d in g co m p a n ie s to obtain su fficie n t in fo rm a tio n to d eterm in e w heth er the re s p o n s e is b ia se d and in what m an n er; o r (2) to co m p a r e the c h a r a c t e r is t ic s o f the fin al sam ple with what is known about m an u factu rin g as a w h ole. Sin ce the r e s o u r c e s a v a ila ble fo r this p ilo t study w e r e lim ite d , the se co n d a lte rn a tiv e w as u sed . If the e x iste n ce o f c o lle c t iv e b a rg a in in g , in it s e lf, is an in d ica tio n o f the ty p e s and le v e ls of ex p en d itu res, the sa m p le a p p ea rs to be adequate in th is r e g a r d . A p p ro x im a te ly 75 p e rce n t o f the 550 esta b lish m e n ts c o v e r e d re p o rte d c o lle c t iv e b a rgain in g a g re e m e n ts in e ffe c t fo r a m a jo r ity o f p ro d u ctio n and re la te d w o r k e r s . A corre sponding p r o p o r tio n c o v e r in g m anufacturin g e sta b lish m e n ts in 17 m a jo r la b o r m a rk et a r e a s re ce n tly su rv e y e d by the B u rea u w as 74 p e r c e n t. 12 10 One o f the m a jo r re a s o n s fo r sending th ese le t t e r s w as to find out if the co m p a n ie s cou ld supply the m is s in g data o r cou ld e x p la in the d is c r e p a n c ie s . T h is p r a c t ic e n e c e s s a r ily had to be r e s t r i c ted to ob v io u s e r r o r s and by no m eans a ssu m e d r e lia b ility o f data in oth er q u e stio n n a ire s. 11 D esp ite in s tru ctio n s to the c o n tra ry , a few re p o rtin g c o m p a n ies a p p a ren tly in clu d ed a ll paym en ts fo r o v e r tim e h o u rs in stead of only the p re m iu m p a rt of such p a y m en ts. 12 See E xtent o f C o lle c t iv e A g re e m e n ts in 17 L a b o r M a rk ets, 19 53 -5 4 , M onthly L a b o r R e v ie w , January 1955. 22 The m o s t r e c e n t B ureau estim a te o f the p ro p o r tio n o f m anufacturin g plant em p loy m en t c o v e r e d by c o lle c t iv e b a rg ain in g a g re e m e n ts , b a se d on 1946 data, was a p p ro x im a te ly 70 p e r c e n t .1* A lthough these 3 ra tio s a re not d ir e c t ly co m p a ra b le fo r a nu m ber o f r e a s o n s , it w ould a p p ea r that the p r o p o r tio n o f o rg a n iz e d e sta b lish m e n ts re p re s e n te d in this sa m p le d oes not deviate a p p r e c ia b ly fr o m the l,tr u e n p r o p o rtio n ; at the m o s t it w ould a pp ear that u n ion ized fir m s a re slig h tly o v e rrep resen ted . A s to the p re v a le n ce o f individual b e n e fits , no sig n ifica n t b ia s is r e v e a le d in the final sa m p le . A ll e sta b lish m e n ts, o f c o u r s e , w e re o b lig a te d to m ake the le g a lly re q u ir e d p a y m e n ts. A ll e s t a b lis h m e n ts, p re s u m a b ly , w ere c o v e r e d b y the F a ir L a b o r Standards A c t p r o v is io n s on the paym ent o f p re m iu m o v e r tim e r a t e s . A su b sta n tia l p r o p o r tio n o f the esta b lish m e n ts r e p o rte d o v e rtim e h ou rs w ork ed during the c o u r s e o f the y e a r . An a n a ly sis o f the p re v a le n ce o f v o l u n tary o r n eg otia ted p r a c t ic e s (paid v a ca tio n s , h o lid a y s, s ic k le a v e , sh ift p r e m iu m s , in s u ra n ce , and p en sion p la n s), b a se d on the 550 q u e s tio n n a ire s , in d ica te d that, on the w h ole, esta b lish m e n ts in the lo w -w a g e grou p and esta b lish m en ts in the South tended to have fe w e r such p r a c t ic e s in e ffe c t . The p re v a le n ce o f these p r a c t ic e s was a lso g r e a te r in the la r g e r e s t a b lis h m e n t s .14 T h u s, to the extent that lo w w age e sta b lish m e n ts, s m a ll e sta b lish m e n ts, and esta b lish m en ts in the South a re u n d e rre p re s e n te d in the sam ple (ta b les 1, Z, and 3), there is a p resu m p tio n of an upw ard b ia s . H o w e v e r, the sligh t e ffe c t o f a bias o f this type can be d e m on stra ted b y co n s id e r a tio n o f an e x tre m e c a s e ----the e ffe c t u n d e r r e p resen ta tion o f sm a ll esta b lish m en ts has on the o v e r a ll p re v a le n ce o f p en sion p la n s. Only 17 p e rce n t o f the e sta b lish m e n ts with fe w e r than 100 w o r k e rs re p o rte d a p en sion plan in e ffe c t , as co m p a r e d with 84 p e rce n t o f the e sta b lish m e n ts with 5 ,0 0 0 o r m o r e w o r k e r s ; fo r a ll e sta b lish m e n ts co m b in e d , the p e rce n ta g e am ounted to 5 6 .4 . A p plying a w eight o f 2 to the sm a ll esta b lish m e n ts (o r a ssu m in g a r e s p o n s e tw ice as la rg e as actual) would re d u ce the p ro p o r tio n o f e sta b lish m e n ts with p en sion plans to 53. 5 p e r c e n t , a d rop o f a p p r o x im a te ly 3 p e rce n ta g e p o in t s .15 If the p u rp o se o f the su rv e y w ere to com p u te a v e ra g e c e n t s -p e r -h o u r expen ditu res co v e r in g a ll e s t a b lis h m ents in the sa m p le , the d iffe r e n c e b etw een the a ctu al retu rn s and retu rn s a d ju sted inx this m an n er to a cco u n t fo r the u n d e r r e p r e s e n ta tion o f s m a ll esta b lish m e n ts w ould be in the n eig h b o rh o o d o f o n e fifth o f a ce n t, a ssu m in g equivalent le v e ls o f p en sion expen ditu res fo r s m a ll and la rg e e sta b lish m e n ts. 13 See E xtent o f C o lle c tiv e B arga in in g and Union R e co g n itio n , BLS B u ll. 909. 14 In d u stry , re g io n , s iz e o f e sta b lish m e n t, and un ion ization a r e , o f c o u r s e , in te r r e la te d f a c t o r s . 15 On the oth er hand, the adoption o f a cu to ff point fo r the s u r v e y o f 100 w o r k e r s w ould in c r e a s e the p r o p o r tio n to 59. 6 p e r c e n t. 1946, 23 F o r the re s p o n s e as a w h ole, e sta b lish m e n ts in the fo llo w in g p ro p o r tio n s r e p o r te d su p p lem en ta ry p r a c t ic e s in e ffe c t: P a id v a c a tions 99 p e r c e n t; paid h olid a y s 90 p e rce n t; s ic k le a v e 19 p e r c e n t; p en sion plans 56 p e r c e n t; and so m e type o f in su ra n ce 93 p e r c e n t. T h ese fig u r e s o ffe r no e v id e n ce o f sig n ifica n t \kpward b ia s on the b a s is o f su ch in fo rm a tio n as is a v a ila b le co n c e rn in g the p r e v a le n ce o f th ese p r a c t ic e s in m an u factu rin g in d u s t r ie s .16 T h is is not to sa y that these p ro p o r tio n s a re tru ly r e fle c t iv e o f the u n iv e rse o f m a n u fa ctu rin g e sta b lish m e n ts em p loyin g 20 o r m o r e w o r k e r s ; the qu estion c o n s id e r e d h e r e , as p r e v io u s ly n oted , is s im p ly w hether the r e sp on se is sig n ifica n tly o v e rw e ig h te d by e sta b lish m e n ts with e x ten siv e su p p lem en ta ry b e n e fits . The n e c e s s a r ily q u a lifie d a n sw er is that if th ere is an upw ard bias in p r a c t ic e s , it is not s u ffic ie n tly la rg e to have an a p p re cia b le e ffe c t on the type o f a g grega te data p re se n te d in this r e p o r t . S in ce the le v e l o f w ages is a fa c t o r a ffe ctin g expen ditu re le v e ls fo r so m e it e m s , an o v e rsta te m e n t o f expen ditu res in cents p e r hour m ight be in fe r r e d if the re s p o n s e w e re w eigh ted o v e r w h e lm in g ly by the h ig h -w a ge esta b lish m e n ts in ea ch in d u stry . By c o m puting g r o s s a v e ra g e h ou rly earn in gs f o r ea ch q u estion n a ire (g r o s s p a y r o lls d iv id ed b y total m a n -h o u rs ) and by a v era gin g these fig u r e s fo r each in d u stry and fo r all q u e s tio n n a ire s , a co m b in e d a v era g e o f $ 1 .8 3 was ob tain ed . The B u r e a u 's s e r ie s on g r o s s a v e ra g e h ou rly ea rn in gs sh ow ed an a v e ra g e o f $ 1 .7 7 f o r all m anufacturin g in 1953, o r a d iffe r e n c e o f a p p ro x im a te ly 3 p e r c e n t. The sa m p le a v e ra g e s e x ce e d e d the B u r e a u 's b a s ic fig u r e s fo r 11 in d u stry grou p s and w e re lo w e r fo r 5. T h ese a v e ra g e s a re com p u ted in d iffe re n t w a y s; a s su m in g, h o w e v e r , that the a v e ra g e s a re c o m p a r a b le , an o v e r r e p r e sen tation o f h ig h -w a ge e sta b lish m e n ts w ould be in d ica te d . H ere, again , the d iffe r e n c e is s m a ll; and as it b e c o m e s fu rth e r diluted in the ex pen ditu re ra tio s com p u ted , it m ay w ell be c o n s id e r e d n e g lig ib le . Although the above a n a ly sis in d ica tes that this su rv e y r e sp on se is not s ig n ifica n tly b ia s e d in the d ir e c tio n o f h ig h -w a ge fir m s and fir m s with e x ce p tio n a l b e n e fit p r o g r a m s , such a p ro b a b ility shou ld not be d isco u n te d fo r oth er sa m p le s o r fo r su b grou pin gs am ong the 550 q u estio n n a ire s c o v e r e d in this r e p o r t . The d e s ir a b ilit y o f e x clu din g e sta b lish m e n ts with fe w e r than 100 e m p lo y e e s fr o m e x p e n d i ture su r v e y s is im m e d ia te ly p re se n te d as a p r a c t ic e m e ritin g s e r io u s c o n s id e r a tio n . The N on re sp o n se As m en tion ed p r e v io u s ly , the n o n re sp o n se was not s u r v e y e d , hen ce its c h a r a c t e r is t ic s cannot be d e f i n it e l y d e te rm in e d . B y i n f e r en ce and by a ssu m in g that the o rig in a l sa m p le was truly r e p r e s e n t a tive o f a ll m a n u fa ctu rin g, the n o n re sp o n se co u ld be p re su m e d to have 16 C h ie fly , the B u r ecom a u 'sm u n ity wage su rv e y s and stu d ies o f union a g re e m e n t p r o v is io n s . 24 c h a r a c t e r is t ic s w hich a re the in v e r s e o f th ose noted a bove fo r the r e sp o n se — that i s , a h ig h er p r o p o r tio n o f s m a ll e sta b lish m e n ts, p erh aps som ew h at le s s u n ion iza tion , p erh a p s fe w e r b e n e fits , p erh a ps a lo w e r a v e ra g e wage le v e l (a ll o f w hich a re re la te d f a c t o r s ) . The n o n r e sp o n s e , h o w e v e r , is c o m p r is e d o f two p a rts ( l) the e sta b lish m e n ts w hich fa ile d to re sp o n d at a ll to the B u re a u 1s r e q u e s ts , and (2) the esta b lish m en ts w hich su bm itted unusable q u e stio n n a ire s o r le tte r s e x plaining why they co u ld not o r w ould not p a rticip a te in the s u r v e y . O v er 170 r e p lie s o f the la tte r type w ere r e c e iv e d ; an a n a ly sis o f th ese r e p lie s should shed som e lig h t on the m a tte r o f n o n r e s p o n s e . 17 C le a r ly , an im p orta n t ca u se o f n o n re sp o n se o r inadequate r e s p o n s e w as the la ck o f com p a n y r e c o r d s o r the am ount o f tim e r e q u ired to su m m a riz e a v a ila b le r e c o r d s . A s one p e rs o n n e l d ir e c t o r w ro te : The am ount o f tim e in v olv ed that w ould be r e q u ire d to give you su fficie n t in fo rm a tio n . . . w ould be e x tr e m e ly dem anding upon u s . Our r e c o r d s a re not kept in a m anner so that the b a s ic in fo rm a tio n that you a re req u estin g w ould be im m e d ia te ly a v a ila b le . . . . In o r d e r to gath er this in fo rm a tio n fo r you w ould in v o lv e , in add ition to m y own tim e and m e m b e r s o f m y d ep a rtm en t, so m e tim e spent b y the c h ie f accou n ta n t, c h ie f p a y r o ll c le r k , c h ie f t im e k e e p e r and m e m b e rs o f th eir d e p a rtm e n ts. An o ffic ia l o f a la r g e m ultiplant com p a n y stated: O ur m ain p r o b le m stem s fr o m the la ck o f su m m a r ie s o r brea k d ow n s on the s p e c ific ite m s on w hich in fo rm a tio n is d e s ir e d . In m o st in s ta n c e s , it would m ean cu llin g the r e c o r d s fo r 1953 to d e v e lo p the data, w hich w ould be a long tediou s ta sk . In oth er in s ta n c e s , no attem pt is m ade to k eep a sep a ra te r e c o r d o f the expen diture in q u e stio n . The q u e s tion s on p e n sio n and in su ra n ce plans cannot be a n sw e re d b e ca u se we have national c o v e r a g e in v o lv ing a ll ty p es and c la s s ific a t io n s o f e m p lo y e e s with no attem pt m ade to b re a k down ex p en d itu res b y in dividu al un its. In p a r t, d iffic u ltie s a r o s e in m eetin g the re q u ire m e n ts o f the q u e stio n n a ire , p a r tic u la r ly with r e s p e c t to its lim ita tio n to p r o d u c tion and r e la te d w o r k e r s . F o r ex a m p le: 17 A s w as to be e x p e c te d , a n u m ber o f esta b lish m e n ts in the o r ig in a l sa m p le w e re out o f b u s in e s s , e m p lo y e d fe w e r than 20 w o r k e r s at the tim e o f the s u r v e y , o r co u ld not be lo ca te d (c la s s ifie d as n o n r e s p o n s e ). 25 W hile u en efits p aid to o r on b e h a lf o f in d iv id u als can be tr a c e d to b a s ic r e c o r d s su ch as c lo c k c a r d s , ea rn in g s r e c o r d s , and in su ra n ce p re m iu m listin g sta te m e n ts, we do not have g e n e ra l le d g e r su m m a rie s o f am ounts paid to 1‘p ro d u ctio n and r e la ted w o r k e r s .11 In m a n y in s ta n c e s , the su p p le m e n tal paym ents a re ch a rg e d to the sa m e a cco u n ts as re g u la r e a rn in g s . . . . P re m iu m p aym en ts a r e not se g re g a te d fr o m re g u la r ea rn in gs in ou r a cco u n tin g . A n oth er o ffic ia l w ro te : T he in fo rm a tio n r e q u e ste d in this s u r v e y cou ld be ob ta in ed , if n e c e s s a r y , but it w ou ld take c o n s id e ra b le tim e and e ffo r t to se g re g a te and a c c u m u late the data fo r p ro d u ctio n and re la te d w o r k e r s . M any o f the unusable q u e stio n n a ire s r e c e iv e d r e fle c t e d the d iffic u ltie s in d ica te d a bove plus a re lu cta n ce to e stim a te expen ditu re le v e ls in the a b s e n ce o f p r e c is e r e c o r d s . R e fu s a l to re sp o n d at a ll is , o f c o u r s e , a fa c t o r in a ll v o l un tary s u r v e y s . In this c a s e , s e v e r a l co m p a n ie s e x p r e s s e d to B u rea u r e p r e s e n ta tiv e s a la ck o f in te re s t o r u se fu ln e ss in the s u b je c t studied; so m e thought that the a v a ila b ility o f this type o f in fo rm a tio n cou ld be u sed to th e ir d isadvan tage in c o lle c t iv e b a rg a in in g . Such n on resp on d en ts who o b je c te d in p r in c ip le to this s u r v e y a re b e lie v e d to be a sm a ll m in o r ity . 27 Establishm ent .R ecord s and R eporting P ra ctic e s A m a jo r pu rpose o f this pilot study was to determ ine the prevailin g p ra ctice am ong m anufacturing establishm ents with r e sp e ct to ( l ) keeping separate r e co r d s of their expenditures on the selected item s of em ployee rem uneration, (2) frequ en cy with which re co r d s w ere sum m arized or aggregated fo r the establish m en ts' own p u r p o s e s , (3) ability to p rovid e data on actual expenditures from these r e co r d s in the form requested, and (4) m ethods used in estim ating e x penditures in the ab sence o f p r e c is e r e co r d s and the general r e lia bility of such estim ates. The reason s fo r investigating these p ra ctice s can be sum m a rized b r ie fly . If a substantial prop ortion of establishm ents do not keep separate r e co r d s but, perhaps, account fo r a ll expenditures c o m bined under such broad ca teg orie s as "d ir e c t la b o r " or "overh ead, " then voluntary expenditure surveys would obviou sly be im p ra ctica l. If establishm ents do not follow the p ra ctice o f aggregating b a sic r e c ords such as .tim ecards and p a y roll colum ns fo r their own p u rp oses, expenditure surveys requesting annual data would im pose an e sp e cia lly heavy burden upon respondents. If establishm ents cannot supply the type of data requested in this su rvey, despite the indication that r e c ords of som e type w ere kept and su m m arized, perhaps a differen t approach might be requ ired . T hese consideration s led to another pertinent question: A re establishm ent approxim ations adequate fo r som e p u rp oses? Is it reasonable to assu m e, fo r exam ple, that the vast m a jority of establishm ents, p a rticu la rly those which engage in c o lle c tiv e bargaining, have a fa ir ly good notion o f the amount o f e x penditures connected with any p r a c tic e ? Such estim ates can be d e rived , in the ab sence of actual expenditure r e c o r d s , from related in form ation . F o r exam ple, annual expenditures fo r 6 paid holidays equal 8 hours a day, tim es the avera ge hou rly rate, tim es the a v e r age number of em ployees eligible fo r paid h olidays, tim es 6. Expenditure R ecord s The establishm ents surveyed w ere asked the follow in g q u e s tions: (l) Do you keep separate expenditure r e co r d s fo r each o f the selected item s cov erin g produ ction and related w o r k e r s ? (2) If you keep such r e c o r d s , how often do you sum m arize the e n trie s? A " y e s " o r "n o" answer was requested fo r the fir s t; the p e rio d fo r w hich sum m a ries w ere m ade ( e . g . , m onthly, qu arterly, e t c .) fo r the secon d. O bviously, d escription s of accounting p ro ce d u re s and definitions w ere not sought. 18 A " y e s " answer to the fir s t question was interpreted 18 This is not to m in im ize the need fo r the developm ent m ore uniform accounting p roced u re s am ong establishm ents if a high er degree of p r e c is io n in m easuring or com paring expenditure le v e ls is ever to be attained. In the co u rse o f this su rvey, many esta b lishm ents ex p ressed to the Bureau an in terest in the developm ent o f standard p roced u res fo r m aintaining expenditure r e c o r d s . of 28 s im p ly to m ean that r e c o r d s o f expen ditu res f o r the item w e r e a v a ila b le , in w h a tev er fo r m the e sta b lish m e n t ch o s e to keep th em . A nn o M a n sw er can be in te rp re te d in two w a y s, that ( l ) se p a ra te e x p en d itu re r e c o r d s w e re not kept, o r (2) no se p a ra tio n w as m a d e betw een p ro d u ctio n and re la te d w o r k e r s and oth er e m p lo y e e s . The in fo r m a tio n fo r na ll s e le c te d it e m s 1' and fo r " a il s e le c te d ite m s e x c lu d ing p rem iu m p a y " show n in the a cco m p a n y in g ta b les re p r e s e n t a co m p o s ite o f the individual e n trie s on the q u e stio n n a ire . The re s p o n s e re v e a le d c o n s id e r a b le v a ria tio n in r e c o r d k e e p ing p r a c t ic e s am on g the ite m s studied, w ith the b e s t sh ow in g, as m igh t be e x p e cte d , fo r the le g a lly re q u ir e d paym ents (table 4 ). The ten d en cy to co m b in e p re m iu m pay f o r o v e r tim e with p re m iu m p a y f o r h olid a y w o r k , p a st w ith cu r re n t p en sion c r e d it s , and p a r tic u la r ly the v a rio u s in s u ra n ce and w e lfa r e ite m s , w as n o ta b le . P o s s ib ly no s e p a ra tion was p r a c t ic a b le in th ese in s ta n c e s . The e x ce p tio n a lly high "not k ep t" ra te shown fo r sh ift p re m iu m p ay , the su p p le m e n ta ry b e n e fit m o s t lik e ly to be r e s t r ic t e d to p ro d u ctio n and re la te d w o r k e r s , m a y be a cco u n te d f o r , in p a rt, by the p r a c t ic e o f including shift p r e m ium pay d ir e c t ly in b a sis w ages fo r shift w o r k e r s fo r p a y r o ll a c counting p u r p o s e s . A bout h a lf o f the e sta b lish m e n ts su rv e y e d in d i ca ted that se p a ra te r e c o r d s w e r e kept fo r ea ch o f the s e le c te d ite m s in e ffe c t in the e sta b lish m e n ts. E xclu d in g p re m iu m p ay, the p r o p o rtio n w as in c r e a s e d to a p p ro x im a te ly 70 p e r c e n t. The v a st m a jo r it y of the esta b lish m en ts w h ich kept expen d itu re r e c o r d s su m m a riz e d the individual e n trie s fo r th eir own o r oth er u se s (table 5). C o n sid e rin g su rv e y s o f expen ditu res fo r a fu ll y e a r , w h ich a p p ea rs thus fa r to be the m o s t p r a c t ic a l p e r io d of c o v e r a g e , it w ould se e m that the m o st tr o u b le s o m e p r o b le m lie s in a c cum ulatin g su ch p a y r o ll item s as p re m iu m pay f o r o v e r tim e , sh ift p rem iu m pay, and v a ca tio n and h olid a y p a y m e n ts. On the oth er hand, c o v e r a g e o f a sin g le m onth o r a q u a rter m a y depend upon w h eth er an a p p ro p ria te m eth od o f ap p ortion in g ce r ta in ite m s lik e p e n sio n ex p en d itu res cou ld be w o rk e d out. T im e R e c o r d s In the a b s e n ce o f expen ditu re r e c o r d s , it w as a ssu m e d that tim e r e c o r d s co u ld b e u tiliz e d as a b a s is fo r com puting expen ditu re to ta ls . A s table 6 in d ic a te s , this p o s s ib ilit y a p p ea rs m o s t fru itfu l fo r the p re m iu m pay it e m s , fo r w h ich tim e r e c o r d s w e r e kept by h ig h e r p r o p o r tio n s o f esta b lish m e n ts than w as the ca s e w ith ex p en d itu re r e c o r d s . A lthough a som ew h at h ig h er p o r p o r tio n o f e s t a b lis h m en ts su m m a riz e d expen ditu re r e c o r d s , the g e n e ra l p r a c t ic e w ith tim e r e c o r d s (table 7) did not d iffe r m a rk e d ly fr o m that fo r ex p en d itu re r e c o r d s (table 5). A re la te d m a tte r w as the r e s p o n s e to the q u e stio n s on v a ca tio n , h o lid a y , s ic k le a v e , and shift p re m iu m p r a c t ic e s in p a rt III o f the q u e stio n n a ire . On the w h o le , the r e s p o n s e a p p e a re d to be 29 T A B L E 4 . ---- K e e p i n g o f e x p e n d it u r e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s N um ber of esta b lis h m en ts w ith prac t ic e s in e ffe c t I te m by it e m , 1953 N u m b e r o f e s t a b l i s h m e n t s in w h ic h e x p e n d it u r e r e c o r d s w e r e — K ept N ot kept K ept fo r i t e m in c o m b in a t io n w it h oth ers K ept fo r som e ite m s 1 N ot rep orted V a c a t i o n s , h o l i d a y s , a n d s i c k l e a v e -------------------------------P a id v a c a t i o n s ----- ------------------------------------------------------------P a id h o l id a y s -------- ---------------------------------------- ------------------P a id s i c k l e a v e ------------------------------------------------------------------- 544 544 495 103 477 499 43 2 77 29 31 48 20 13 14 3 - P r e m i u m p a y -------------------------------------------------------------------------P r e m i u m p a y f o r o v e r t i m e -----------------------------------------P r e m i u m p a y f o r w o r k on h o l i d a y s --------------------------S h ift p r e m i u m p a y ---------------------------------------------------------- 2 541 2 539 2 324 439 344 391 139 2 73 46 45 78 1 25 _ 145 95 95 22 - T o t a l e x p e n d it u r e s f o r p e n s i o n s --------------------------------------P a st s e r v ic e c r e d its -----------------------------------------------------C u r r e n t s e r v i c e c r e d i t s ------------------------------------------------ 310 221 308 251 100 175 40 32 40 «. 2 77 77 - I n s u r a n c e , h e a l t h , a n d w e l f a r e ---------------------------------------F i x e d c o n t r i b u t i o n s -----------------------------------------------------------L i f e i n s u r a n c e ------------------------------------------------------------------A c c i d e n t a l d e a t h a n d d i s m e m b e r m e n t ----------------------A c c i d e n t a n d s i c k n e s s b e n e f i t s -----------------------------------H o s p i t a l i z a t i o n ------------------------------------------------------------------S u r g i c a l ------------------------------------ -------------------------------------------M e d i c a l ( o t h e r th a n s u r g i c a l ) --------------------------------------O th e r ------------------------------------------------------------------------------------- 513 94 411 245 35 0 388 382 200 98 443 89 189 66 148 118 102 32 19 51 4 54 30 45 49 48 26 17 3 9 L e g a l l y r e q u i r e d p a y m e n t s -----------------------------------------------O ld A g e a n d S u r v i v o r s I n s u r a n c e ------------------------------U n e m p lo y m e n t c o m p e n s a t i o n 3 ------------------------------------W o r k m e n 's c o m p e n s a t i o n --------------------------------------------S ta te t e m p o r a r y d i s a b i l i t y i n s u r a n c e ------------------------ 550 550 550 541 47 487 493 492 489 36 25 35 36 42 7 A ll s e le c t e d ite m s 550 2 70 7 - 273 - 550 393 8 - 149 - ---------------------------------------------------------------- A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y ------------------ 38 - - - - 159 145 153 216 228 139 62 - _ 16 16 3 3 1 1 3 - _ - 34 - 6 8 12 19 17 12 16 7 1 9 4 4 5 4 3 - 4 6 6 7 1 A p p l i e s o n l y t o t o t a ls o f i t e m s in e a c h c a t e g o r y . B a s e d o n r e s p o n s e t o q u e s t i o n s o n r e c o r d s a n d e x p e n d i t u r e s , a n d d o e s n o t n e c e s s a r i l y r e f l e c t p r e v a l e n c e o f p r a c t i c e in 1 9 5 3 . F e d e r a l an d S ta te. 30 T A B L E 5 . — E s t a b l i s h m e n t p r a c t i c e in s u m m a r i z i n g e x p e n d it u r e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s 'r fT m W r" of e sta b E ach lis h pay m e n ts keeping p e r io d record s Item b y ite m , M on th ly of e s t a b lis h m e n ts in w hich ex pen d itu re r e c o r d s w e r e s u m m a r iz e d — S om e su m m a Not Not S e m i Q u ar A n n u a lly s u m m a r iz e d ; r e p o r te d annu ally t e r ly other s r iz e d n o t1 112 114 41 13 10 18 16 4 7 13 18 20 26 17 - - 17 19 5 10 1 1 1 139 67 85 5 - - 4 " 3 80 8 45 15 32 21 21 8 4 10 2 6 3 6 4 4 2 2 V a c a tio n s , h o lid a y s, and s ic k le a v e 2 _____________ P a id v a c a tio n s _ .... ___ ________ _ P a id h o lid a y s _______________________________________ P a id s ic k le a v e _____________________________________ 477 499 432 77 208 224 245 25 107 106 103 28 12 12 10 6 6 7 2 P r e m i u m p a y 2 __________________________________________ P r e m i u m pay for o v e r t im e _______________________ P r e m i u m pay fo r w o rk on h o lid a y s ____________ Shift p r e m iu m pay _________________________________ 344 391 139 273 213 257 84 169 66 76 25 52 7 9 3 6 _ 1 - T o ta l ex p e n d itu r e s fo r p en sio n s 2 __________________ P a s t s e r v ic e c r e d its ______________________________ C u r r e n t s e r v ic e c r e d its ____________ _____________ 251 100 175 14 2 12 67 19 56 6 4 5 In su r a n c e , h ealth , and w e lfa r e 2 ......... ........... F ix e d con trib u tion _________________________________ L ife in su r a n c e ________________________ _____________ A c c id e n ta l death and d is m e m b e r m e n t _________ A c c id e n t and s ic k n e s s b e n e fits ________ ____ ____ H o sp ita liz a tio n __________________________ ______ ___ S u r g ic a l _______________________________________________ M e d ic a l (oth er than su r g ic a l) ... ____ O th er _ ... ___ _ . ____ _ ___ ____ 44 3 89 189 66 148 118 102 32 19 29 10 10 2 14 3 2 1 281 61 117 44 91 83 70 21 12 11 1 2 * - - 1 - - 4 4 1 - - - - - - - - - _ - - - 5 6 6 10 1 - 4 6 6 8 1 31 80 50 39 3 132 165 148 200 18 87 175 131 50 11 A l l s e le c te d it e m s 2 270 7 45 25 1 162 1 29 393 7 68 37 2 256 4 19 _ .... _ ...... A ll s e le c te d it e m s ex clu d in g p r e m iu m pay 2 _____ 1 A p p l i e s o n l y t o t o t a l s o f i t e m s in e a c h c a t e g o r y . W h e r e e s t a b l i s h m e n t p r a c t i c e d i f f e r e d a m o n g th e i t e m s c o m p r i s i n g the t o t a l s , 24 Item V a c a tio n s , h o lid a y s , and s ic k le a v e P a id v a c a t io n s ____ ____ P a i d h o l i d a y s _____________________ P a id s ic k le a v e P r e m iu m pay P r e m i u m p a y f o r o v e r t i m e ____ P r e m iu m pay fo r w o rk on h o lid a y s S h ift p r e m i u m p a y - - by s e le c t e d ite m s , 195 3 N u m b e r o f e s t a b l i s h m e n t s in w h ic h tim e r e c o r d s w e r e — K ept N ot kept K ept fo r i t e m in c o m b in a t io n w it h oth ers _ 54 4 544 495 103 452 464 417 80 56 67 65 17 2 541 2 5 39 398 408 35 34 90 2 324 439 172 309 52 93 89 19 12 12 3 K ept fo r som e ite m s 1 35 _ _ 103 _ _ - N ot rep orted 1 1 1 3 5 7 11 18 1 A p p l i e s o n l y t o t o t a l s o f i t e m s in e a c h c a t e g o r y . B a s e d on r e s p o n s e to q u e s t io n s o n r e c o r d s an d e x p e n d it u r e s , a n d d o e s n o t n e c e s s a r il y r e f l e c t p r e v a l e n c e o f p r a c t i c e in 1 9 5 3 . - th e l o n g e s t p e r i o d w a s s e l e c t e d f o r t a b u l a t i o n . T A B L E 6 — K e e p in g o f t i m e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s N um ber o f e s ta b lis h m en ts w it h p r a c t ic e s in e f f e c t 29 7 8 2 1 3 4 1 487 493 492 489 36 - 19 7 12 - 8 - 11 11 2 10 - 211 61 151 158 2 9 15 18 15 1 - L e g a lly r e q u ir e d p a y m e n ts 2 _ ............. ........ _ ... . O ld A g e and S u r v iv o r s In su ran ce . _ . U n em p lo y m en t c o m p e n sa tio n . . . . . . . . . ___ _ W o r k m e n ’ s c o m p e n sa tio n ......................... ....... State t e m p o r a r y d is a b ility in su r a n ce ... _ ___ 1953 v_ Numb► 31 T A B L E 7 . — E s t a b l i s h m e n t p r a c t i c e in s u m m a r i z i n g t i m e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s N um ber of e sta b lis h m e n ts k e e p in g record s Item 1953 N u m b e r o f e s t a b l i s h m e n t s in w h ic h t i m e r e c o r d s w e r e s u m m a r i z e d — E a ch pay p e r io d M o n t h ly Q u ar te r ly S e m i a n n u a lly 5 6 1 V a c a t i o n s , h o l i d a y s , a n d s i c k l e a v e 1 --------------P a i d v a c a t i o n s ____________________________________ P a i d h o l i d a y s _____________________________________ P a i d s i c k l e a v e ____________________________________ 451 464 417 80 202 213 243 36 71 68 65 13 11 13 10 5 ______________________________________ f o r o v e r t i m e _____________________ f o r w o r k o n h o l i d a y s ___________ p a y _______________________________ 398 408 172 309 235 270 107 186 49 56 19 37 10 10 3 4 P r e m iu m p a y 1 P r e m iu m pay P r e m iu m pay S h ift p r e m i u m b y s e le c t e d it e m s , N ot A n n u a lly s u m m a r iz e d 94 103 37 10 34 43 45 13 19 - 15 18 16 3 1 17 20 6 9 43 41 32 58 35 9 10 5 15 - 1 v - " S om e sum m a N ot r iz e d ; rep orted oth ers not 2 - 1 W h e r e e s ta b lis h m e n t p r a c tic e d iffe r e d am on g the ite m s c o m p r is in g the t o t a ls , the lo n g e st p e r io d w a s s e le c te d fo r ta b u la 2 A p p lie s on ly to to ta ls of it e m s in ea ch c a te g o r y . tio n . T A B L E 8 . — N ature o f ex pen d itu re fig u r e s re p o r te d by it e m , 1953 N u m b er o f e s t a b lis h m e n ts re p o r tin g — N u m b er of e s t a b lis h m e n ts with p r a c tic e s in e ffe c t A ctu a l e x p e n d i ture fig u re E s ti m a ted ex p e n d i ture fig u re S om e a c tu a l; som e e s ti m a te d 1 544 544 49 5 103 408 452 362 63 64 72 109 24 56 - P r e m iu m pay ... .. ... ................ .... P r e m iu m pay fo r o v e r t im e P r e m iu m pay fo r w o rk on h olid ay . _ ......... Shift p r e m iu m pay .. ...___ _ ..................... 2 541 2 539 2 324 439 292 346 70 22 3 61 60 33 138 101 - T o ta l e x p e n d itu res fo r p en sio n s __________________ P a s t s e r v ic e c r e d its ______ _____________ __ ______________________ C u r r e n t s e r v ic e c r e d its 310 221 308 196 72 144 71 32 41 4 - In su r a n c e , h ealth , and w e lfa r e ..... _ _ ...... .... F ix e d con trib u tion .. ___ ____ ___ L ife in su ra n ce .......... A cc id e n ta l death and d is m e m b e r m e n t A c c id e n t and s ic k n e s s b e n e fits .......... _ _ H o sp ita liza tio n _ ... .................. . . . S u r g ic a l ...... . . ... ___ _ _ . . . _ M e d ic a l (other than s u r g ic a l) ____ ______ O ther _ ____ 513 94 411 24 5 350 388 382 20 0 98 334 75 128 36 102 77 63 17 9 130 17 68 28 51 47 40 15 13 18 _ - . 7 6 3 1 2 1 - - L e g a lly r e q u ir e d p aym e n ts O ld A g e and S u r v iv o r s In su ran ce U n em p lo ym en t c o m p e n sa tio n 3 _________________ W o r k m e n 's c o m p e n sa tio n _._ ... ............. . State t e m p o r a r y d isa b ility in s u r a n c e ________ 550 550' 550 541 47 387 422 41 4 411 31 65 94 101 106 72 . _ 1 26 - - 7 - - 24 9 A l l s e le c te d it e m s 550 165 14 24 0 - 131 550 25 0 17 211 Item V a c a tio n s , h o lid a y s, and s ic k le a v e P a id v a c a tio n s _ ____.. ........................................... P a id h o lid a y s _ - ______ _____ _ P a id s ic k le a v e _ _ _ _ ... __ A l l s e le c te d it e m s ex clu d in g p r e m iu m pay _. .. .......... _ ___ ................... ................. . - - - - No ex p e n d i tu r e s in c u r re d No in fo r m a tio n _ 1 1 16 20 23 15 2 5 86 5 85 128 135 73 4 6 3 35 111 120 . 31 2 208 175 194 26 3 277 167 76 34 34 72 1 A p p lie s on ly to t o ta ls o f it e m s in ea ch c a te g o r y . B a s e d on r e s p o n s e to q u e stio n s on r e c o r d s and e x p e n d itu r e s, and d o es not n e c e s s a r i ly r e f le c t p r e v a le n c e o f p r a c tic e 1953. 3 F e d e r a l and S ta te . in 32 s a t i s f a c t o r y . le n g t h t io n o f p o l i c y t w e e n th e F o r in s h ift e s t a b l is h m e n t s p a y r o l l l e a v e s i c k t io n n a i r e s th e w e r e b y O n th e w it h a h o u r s th e s u r v e y s ; a s c u s s i o n p la n is o f f o r A c t u a l a n d a t p r a c t i c e c i f i c m in e d r e a l s u c h o f b y b u t a t a k e o r d s . th e t r o u b le A s o n e p r e m i u m p l o y e e t a b lis h m e n t s w h ic h s u m m a r i z a t i o n p e n d it u r e t h e ir r e c o r d s T h e d e r i v e d o f it d i r e c t i o n f o r a b i l i t y in h ig h e s t t a k e h a v e a e a r n i n g s ) . 19 e n c o u r a g i n g f o r r e g u l a r w i d e s p r e a d s t im u la t e t o s u p in d ic a t e d p la n n e d c u r r e n t o r e x p e n d it u r e s d i s m a n a g e m e n t to e x p e n d it u r e s . th e th e k e p t th e t o o f o f d a ta s u b s t a n t ia l o f a ll in a n d w h ic h b a s i c r e c o f o f i n f o r m a t i o n ." r a t h e r s p e d e t e r w i l l i n g n e s s o m i s s i o n a d d in g a c t u a l fo u n d f o r c o n s i d e r e d n u m b e r e f f e c t is f o r m f r o m th e v a r i o u s th e a b ilit y th e r e c o r d s w it h w a s w a s p r o v i d e s h ift o u r e m M a n y t h e ir th a n e s r e g u l a r a c t u a l p r o b l e m s e x in h e r e n t r e q u e s t e d . r e s p o n s e e s t i m a t i n g o f e x p e n d it u r e r e c o r d k e e p i n g r e s p o n d e n t !s e s t i m a t e d b e c a u s e to s u m m a r i e s th a t k e e p in g r e c o r d s s ig n if ic a n t th e n e c e s s i t a t e g e t n o t T h is e x p la in in g p r o v i d e d t y p e is c h ie f l y , a n d in w o u ld y e a r c o l l e c t i n g r e c o r d s . n e c e s s a r y w r o t e , th e o f r e s p o n d e n t h is in c lu d in g , a r e "I t th e w o u ld a q u e s m a n u f a c t u r in g b e B u r e a u th e f e a s i b i l i t y o f f a c t o r s r a t e S u c h h o l i d a y , e s t a b l is h m e n t s th e w i l l o f o f c a s e s , o f e x p e n d it u r e s q u e s t i o n n a i r e , f r o m r e p o r t e d c o m p a n y to th e m a i l p r e s u m a b l y o r th a t c o m p a n y o f o f m a k e f r o m 19 s i n c e o f n o n e t h e le s s f i g u r e s , if a ll r e s p o n d e n t s h o u r l y s h o u ld S e v e r a l In th e p r a c t i c e s b e p e r c e n t n u m b e r th e a v e r a g e s u r v e y i n g k e p t a b y v a c a E x p e n d it u r e s e x p e n d it u r e s : c a r d s b e 9 5 v a c a t i o n , in d iv id in g d a ta , e x p e n d it u r e s r e c o r d s to in o r e o v e r , r e s p o n d e n t c l o c k in m th e n u m b e r g r o s s t h e s e w o u ld r e q u e s t e d e s t a b l i s h m e n t ’s (b y a v e r a g e a r e la t io n s h ip f o r l e s s a lt h o u g h p r o v i d e d r e m u n e r a t i o n . m e a n s d a ta in h o u r s h o u r s B u r e a u th e th e w it h e x p e n d it u r e s . r e c o r d k e e p i n g m e a s u r e b y th e i n t e r e s t r e c o r d s E s t i m a t e d a s t y p e th e b r e a k d o w n s l e a s t p r e m i u m w e r e c o m p u t e c o m p u t e p a y r o l l p a y r o l l r e f l e c t e d s u p p le m e n t a r y T h e d a ta , b y to e s t a b l is h m e n t s to c o m p u t e d , h o u r s p r o b a b l e , f i n e r th e t o t a l e s t a b l i s h m e n t s e m p l o y e e it p o s s i b l e o f s h ift (t o ta l w h o le , a p p r o p r i a t e a n d w e r e o f w a s p o s s i b l e r e p o r t i n g l o n g - r a n g e p l e m e n t a r y th a t w a s c o m p u t e d it e m it p e r c e n t h o u r s h o u r s ) e s t a b l i s h m e n t s , t h o s e It e s t i m a t e s e s t i m a t e s f o r 9 7 p r e m i u m a d ju s t e d t o f o r e f f e c t . a n d th e e x a m p l e , v a c a t i o n o n th e o f l a r g e e x p e n d it u r e p a id a d e q u a t e e r r o r s a g g r e g a t e . f i g u r e s v a c a t i o n s , f o r in th e p a id th e p u r p o s e s a m e 33 h o l i d a y s , 75 a n d p e r c e n t a c t u a l n o t o r e w h ic h p a r e n t l y it w a s r e s p o n s e th a n o n r a t e o f i n c u r r e d d u r in g t r ib u t a b le id a y l i k e l y u s e d th a t in d ic a t e o n O n ly s u r v e y o n e v e r y it u r e s o r m th e o f c a t e g o r y th e 4 2 t y p e th e it u r e f o r b e its o f a n g r o u p s w it h a a g r e e m e n t s t h e ir p a y m e n t s m a d e th e e x p e n d it u r e s c o r r e s p o n d i n g s u c h a s th e o f f e w o f T h e p r e m i u m th e f o r It d a ta th e w e r e a r e p a y o n y e a r lo w a n d r e p o r t e d , p r o v id i n g h a d f o r a ll a t h o l is a l s o o v e r t i m e b u t f a il e d th e m a d e t o S lig h t ly to th a t f o r o n e p r o p o r t i o n s d a ta f o r th a n r e c o r d s p r o v i d e a c t u a l f o r e x p e n d p a y " m o r e in e s t i m a t e d t o t a l o f p r e m i u m th e a n d e s t i m a t e s p e r c e n t ) , a b s e n c e in lis t e d s o m e c o r r e s p o n d i n g in d ic a t e d a b le a n d c a s e s , (2 4 c o v e r e d i t e m s a c t u a l e x c lu d in g o f a n d o f in w e r e 60 4 5 p e r c e n t w e r e d a ta k e p t o n o f v a r ia t io n s r e c o r d s f o r e x p e n d th e t h r e e 1 9 5 2 , p a y r o l l 11 th e 1 9 5 3 q u a r t e r o f s o m e is t h e s e p r o b l e m s d i f f e r e n c e t h e y t o m a y th e 1 9 5 3 n o t e s b a r a b le a s a n t ic ip a t e d i n c u r r e d l e g a l l y f o r c o v e r 1 9 5 3 . d i f f e r s d i s t o r t i o n c r e a t e d . e s t a b d o b e t t e r G o v e r n m e n t o f e a s th a n a t o c o n p r a c t i c e s ? a c t u a l ly q u a r t e r s m c o l l e c t i v e p o s s i b l y b e t w e e n lia b i l it y p a y m e n t d u r in g f i r s t o n a e x a m p l e , b y a r e a s r a t h e r d i f f e r e n t F o r c o v e r e d a n d d a ta , a m o n g e s t a b l is h m e n t s , a c c o u n t in g a n d r e p o r t e d s u c h a p p r a i s e d . n e g o t ia t in g w a s f i g u r e s p r o v i d e w o r k e r s b e t t e r 1 9 5 3 th e t o a lo n e , q u a r t e r l y fo u r t h o f e x p e n d it u r e a b ilit y n o n u n io n th e m a d e p e r i o d " p e r c e n t a r e p o r t s r o u g h ly n e e d s w h e r e 1 9 5 2 in s o m e p e r c e n t . m a j o r i t y d u r in g e x a m p l e , o f b e q u e s t i o n n a i r e F o r q u a r t e r t y p e th a n O n e th e in th e w e r e k e e p d a ta 20 p l o y m e n t 13 p r a c t i c e s a c t u a l o f b e t t e r v e r y h o l i d a y s , e s t a b l is h m e n t s b e c a u s e w h ic h c a n g a in in g o f T h e e x p la in e d . d u r in g f i g u r e s it e m s a n d th e p r o v i d e s e q u e n c e e x p e n d it u r e s . e x p e n d it u r e s n o t o f A p i t e m . r e c o r d k e e p i n g t a b lis h m e n t s th e e f f e c t . e s t a b l i s h m e n t s l i s h m e n t la t io n in e x p e n d it u r e e a c h o r , o f s e l e c t e d p e r c e n t , o f p r o v i d e d c o m p u t e d it e m s A c c e p t i n g u r e p e r c e n t e x p e n d it u r e b a l a n c e na l i o f n o t o n n o w e r e i n c l u d k e p t . s u b s t a n t ia lly w o r k w h e r e p r e v i o u s l y e x p e n d it u r e s p e r c e n t e s t a b l is h m e n t s e a c h s e p a r a t e w a s d e f in it io n e s t a b l is h m e n t s n o f o r c a s e s a s w e r e s e p a r a t e l y . e x p e n d it u r e s q u e s t i o n n a i r e n o t p a y o f r e s t r i c t e d 3 0 4 6 th e c r e d i t s p r e m i u m o r th e e x p e n d it u r e s s u r v e y , a c t u a l In c o u ld o r e p e r c e n t , o f th e i t e m . e s t im a t e r e c o r d s e s t a b l is h m e n t s q u e s t i o n n a i r e . a b o u t A n o t h e r f i g u r e s th e th e th e to s e p a r a t e s e r v i c e f o r t h is o f p r o v i d e d e f f e c t . c o m p o n e n t s , p e n s i o n i n c u r r e d th is m o s t y e a r t o in s o m e e x p e n d it u r e s e x p e c t e d , i n s u r a n c e p r o p o r t i o n th e l a r g e l y w o r k A s th e th a t a b o u t p r o v i d e d o n d if f ic u lt h ig h i t e m s , r e c o r d s 8 ). a l s o f i g u r e s t h e s e (t a b le c u r r e n t c o r r e s p o n d i n g l y F o r k e e p in g f i g u r e s in d ic a t e d t o t a l p a y m e n t s . 20 e s t a b l is h m e n t s h a d a n d a c t u a l r e q u i r e d th e a c t u a l o n p a s t o f f i g u r e s p r o v i d e m a n y T h e l e g a l l y m e x p e n d it u r e c o u ld in g th e o r th e th a t is f o r m y e a r . th e th e T h u s , m a r k e d l y in in r e q u i r e d r u le , f o u r t h if f r o m e x p e n d it u r e e m th e r a t io s u 34 T h e w a s m o s t t o t a ls (t a b le p o r t e d I n d e e d , a il A h i g h e r th a n th e m o r e th e w e r e n o t a b le ; p r o p o r t i o n q u i r e d p a y a n d a s s i z e th e h o l i d a y s , p r e m i u m p a y , g r o u p " in th e o f s h o w n s i c k w h ic h o f w a s , i t e m s b e a " a l l h i g h e r l e g a l l y th e e f f e c t r e c a s e , o r p r e m i u m s e l e c t e d f i g u r e s i t e m s d i m i n i s h e d p e r h a p s , in u s e d . t e n d e n c i e s g r o u p s — a c t u a l i l a r e s t a b l is h m e n t s a n d t o F o r o f s a m p l e s h o w e d it e m l e a v e . s i m s i m i l a r i t y C e r t a i n p e n s i o n s , r e p a y ; c o n c l u s i v e . th e th is a m o n g s e e m e d p e r c e n t a g e l a r g e r , b e w a s s m a l l 1 0 ). p a y r o l l g r o u p p r e m i u m t o e s t a b l is h m e n t s r e v e r s e n u m b e r th e it e m e s t a b l is h m e n t s n a r r o w (t a b le a n d o n p e r c e n t a g e s ; w a s th e e s t a b l is h m e n t s e x c e p t c o m p a r i s o n lig h t f o r th e b e c a m e d i f f e r e n c e s t o o i n s u r a n c e , th e c l e a r , t o t a ls t h e s e th e o n w h e r e a s n o t v a c a t i o n s , th e o f w e r e in s m a l l e r r e p o r t s r e p o r t i n g u n io n iz e d th is s t u d ie d e x a m p l e , a c t u a l o f v a r i a t io n g r o u p s n o n u n io n th e it e m o f in a n d o f m u c h a s p e c t m o r e s i z e e x p e n d it u r e s , e x c l u d i n g a il d i f f e r e n c e s f o r o f d i f f e r e n c e s f o r r e m a r k a b l e d i f f e r e n t u n io n t e r m s w e r e s t r ik in g C o n s i d e r a b l y in in p r o p o r t i o n d i f f e r e n c e s m o s t th e b e t w e e n m a d e e x p e n d it u r e s th e th e r a t h e r w a s 9 ). a c t u a l h o w e v e r , it y c o m p a r i s o n c o n v e n i e n t l y a r e f l e c t i o n a m o n g th e s i z e g r o u p s . A n a n a l y s is e x p e n d it u r e s b o t h i t e m s o f A w a s it u r e s b in e d , f r o m la r o m it e m in a n o t h e r t h is th e o f p r o v id i n g f o r o r t o i n s u r a n c e e f f e c t r e p o r t e d a n d p e n s i o n r e v e a l e d f o r th a t a s li g h t ly p la n s th a n f o r h i g h e r b y t h o s e o r (t a b le it e m o t h e r p r o d u c t i o n a n 1 1 ). g iv e n d a ta r e s p o n d e n t s o r o f F o r p r o r a t e th e k e e p in g T h e p r e v e n t e d a o r a n r e l a t e d r e a s o n , w it h f o r a il o f r e c o r d s i t e m s T h e w o r k e r s w o r k e r s 4 ), e x p e n d c o m e s t a b l is h m e n t s e s t i m a t e . t o u n d e r (t a b le c o m p a n y ’s a n d n u m b e r e x p e n d it u r e s a n d th e r e a s o n s e x p e n d it u r e r e c o r d s c o m b i n e d g r o u p s f i g u r e c h i e f w e r e in o f f e r e d e s t i m a t e d e x p e n d it u r e i t e m s i t e m e x p e n d it u r e to o f a c t u a l in in a b ilit y a a c c o u n t e d p a r t i c u f o r o t h e r i s s i o n s . b r i e f l y t h e s e a le n t b a s i s w e e k s , th e r e s p o n d e n t s a m o n g o f d e t e r m i n e d a s o n in n o n c o n t r i b u t o r y a n th e it e m R e s p o n d e n t s th e th e s o m e a n u n w illin g n e s s d e s c r i b e o f w e r e e f f e c t o n q u e s t i o n n a i r e . l a c k r e s p o n s e w it h e it h e r e x p e n d it u r e s p la n t o f a r r a n g e m e n t s p l a n s . r e s p o n s e f o r o n t y p e e x p e n d it u r e s p r o v i d e a n th e th a t a n d t o f o r s c o r i n g th e s u b s t a n t i a l 'p r o p o r t i o n f a il i n g f i g u r e o f f in a n c in g e s t a b l is h m e n t s c o n t r i b u t o r y f o r o r th e a c t u a l p r o p o r t i o n w it h b y th e m o n t h s , b e t w e e n p a r t i c u l a r o r g r o u p in g o f w it h i. e . w o r k e r s a n d b a s i s u s e d a v a i l a b l e p r o d u c t i o n t a b l i s h m e n t . c a s e s . t o d a ta , e s t i m a t e d o r c o m p l i e d m e t h o d s r e l a t e d c o s t p r o v id i n g m e t h o d , o n (t a b le c a l c u l a t in g a n th e a n d w o r k e r s c o v e r e d p r e v i o u s w e r e 1 2 ). n u m b e r (2 ) y e a r s a ll th e w a s M o s t p r e v o r a h o u r s , p r o r a t i n g a n d m o s t r a t e o f o n p r e d a y s , e x p e n d it u r e s e m p l o y e e s r e c o r d s a to a n d e x p e n d it u r e s a v e r a g e b y r e q u e s t e d c a l c u l a t io n s r e q u e s t ( l ) in v o lv e d , r e l a t e d in f i g u r e s t h e ir a p p ly in g d a ta e m p l o y e e s E x p e r i e n c e th is w e r e o f g u id e o f o r th e in th e e s s o m e 35 T A B L E 9 . — N a t u r e o f e x p e n d it u r e f i g u r e s r e p o r t e d f o r i t e m g r o u p s Item group and union status Number of establish ments with pra ct ice s in e f f e c t 1 b y u n io n s t a t u s , 1 95 3 Per ce nt 2 o f establishments reporting— Actual expendi ture figure Estimated expendi ture figure Some actual; some e s ti mated No expendi ture figure 3 Vacations, holidays, and sick leave: Union establishments ______________________ Nonunion e s t a b l is h m e n t s ___________________ 413 126 77 70 12 13 10 13 2 5 P re m iu m p a y 4: Union establishments Nonunion establishments 411 125 54 54 10 14 19 16 16 15 Total expenditures for pensions: Union establishments . _ _ ■ Nonunion establishments ___________________ 248 61 63 62 22 26 1 2 13 10 Insurance, health and w elfare: Union establishments Nonunion establishments 399 109 65 63 26 24 4 3 5 10 Legally require d payments: Union e s t a b l i s h m e n t s ______________________ Nonunion establishments ___________________ 416 129 71 67 12 12 13 15 4 6 All selected items: Union establishments Nonunion establishments 416 129 31 28 2 3 43 46 24 23 All selected items excluding prem ium pay: Union es ta b lis hm e nt s _______________________ Nonunion establishments __ __ _ ___ _ 416 129 46 43 3 2 39 38 12 17 1 2 3 4 __ Excludes 5 establishments for which union status was not reported. Perc ent age s not rounded to add to 100. Includes some ca s e s o f "no expenditures i n c u r r e d . " See table 8. Based on resp ons e to questions on r e c o r d s and expenditures, and does not n e c e s s a r i l y re fl e ct prevalence 1953. of p ra ct ice in 36 T A B L E 1 0 . — -N a tu r e o f e x p e n d it u r e f i g u r e s r e p o r t e d f o r i t e m g r o u p s Item group and size of establishment Number of establishments with pra ct ice s in effect b y s iz e o f e s t a b lis h m e n t , 1 95 3 P e r c e n t 1 of establishments reporting— Actual expendi ture figure E stimated expendi ture figure Some actual; e s ti mated No expendi ture figure 2 Vacations, holidays, and sick leave: Under 100 em ployees 100 - 499 employees _.... 500 - 999 e m p l o y e e s ________________________ 1.000 - 4,999 employ ee s 5,000 and over _ 39 157 79 205 64 54 73 70 83 73 21 9 14 10 17 21 15 13 5 8 5 3 4 2 2 Pr em iu m pay3 : Under 100 em plo ye es .. ... 100 - 499 e m p l o y e e s ___ 500 - 999 em ployees _ _ 1,000 - 4,999 em plo ye es __________________ 5.000 and o ve r _______ 41 155 78 203 64 56 49 59 53 63 24 11 10 7 17 10 24 13 21 13 10 16 18 19 8 Total expenditures fo r pensions: Under 100 employ ee s __ __ .. 100 - 499 em plo ve es ___ 500 - 999 emp loy ee s 1.000 - 4.9 99 em plo ye es _ . .... 5.000 and over ____________ 7 52 40 157 54 71 63 68 62 61 - 21 25 24 24 2 5 1 29 13 3 13 15 Insurance, health, and welfare: Under 100 emp loy ee s .... 100 - 499 employ ee s ...... . 500 - 999 e m p l o y e e s ________________________ 1,000 - 4.999 employ ee s __ 5.000 and ove r 30 141 77 201 64 80 72 69 59 58 17 18 27 29 30 _ 3 3 5 2 3 6 1 6 11 Legally required payments: Under 100 employ ee s 100 - 499 employ ee s 500 - 999 employ ee s _ 1.000 - 4,9 99 emp loy ee s 5.000 and ov er _ __ _ 42 159 80 205 64 88 70 81 68 53 _ 6 11 13 31 7 18 8 14 9 5 6 5 6 All selected items: Under 100 emp loy ee s ....... 100 - 499 em ployees ______________________ 500 - 999 employees 1,000 - 4.999 e m p l o y e e s _____ 5,000 and over _ ... _ 42 159 80 205 64 36 30 36 26 33 _ 1 3 9 40 50 43 41 39 24 20 20 30 19 All selected items excluding prem ium pay: Under 100 employ ees . „„ 100 - 499 em ployees __ 500 - 999 em ployees ...... 1,000 - 4.9 99 employees 5,000 and ove r _ 42 159 80 205 64 50 51 46 42 39 _ 1 1 3 13 36 36 48 39 33 14 13 5 16 16 - - _ 1 Percentages not rounded to add to 100. 2 Includes some cas es of "no expenditures incu rred. " See table 8. 3 Based on response to questions on re c o rd s and expenditure s , and does not ne c e s s a r il y refl ect prevalence of p ra ct ice in 1953. 54$ 37 TABLE 1 1 . — R e a s o n s o f f e r e d f o r f a i l u r e t o r e p o r t e x p e n d i t u r e s b y it e m , Item Number of establishm ents not reporting because— Number of e stabli shData fo r R e co rd s Data fo r Data for ments production Some Other item plant not data not w orkers not sum m a reasons not reporting la ck in g4 not available 3 rized available 1 available 2 _ 11 ~ . - 1 2 5 8 _ 96 97 24 1 2 7 2 14 21 3 68 - 41 13 7 13 1 89 89 - 1 - " 14 9 12 9 1 8 5 7 8 8 2 “ 1 183 164 178 245 260 159 74 - 8 - 1 1 ~ 7 10 4 3 6 5 4 1 14 “ 1 - 8 8 10 4 ■ 1 - - 130 - - 1 - - 71 - - 16 20 23 15 “ 2 2 2 1 14 14 4 P rem ium p a y __ P rem ium pay fo r overtim e P rem ium pay fo r w ork on h o lid a y s _______ Shift prem ium p a y ________________________ 85 128 135 73 1 1 1 1 1 1 1 2 Total expenditures fo r p e n s io n s ___ ________ Past se rv ice cred its __ Current s erv ice c r e d it s ___________________ 35 111 120 6 6 6 Insurance, health, and w e lfa r e ______________ Fixed con trib u tion _________________________ L ife insurance _____________________________ A ccidental death and dism em berm ent _____ A ccident and sickness b e n e fits _____ _______ H ospita liza tion . __________________________ Surgical __ _____________________ ________ M edical (other than s u r g ic a l)_____________ Othe r __ ___________________________________ 31 2 208 175 194 263 277 167 76 5 1 6 2 6 4 4 2 1 L egally required p aym ents___________________ Old Age and S urvivors Insurance __ ___ Unemployment com pensation __ ________ Workmen* s com p e n s a tio n ________________ State tem porary disability in su ra n ce_____ 26 34 34 24 9 2 1 8 2 A ll selected item s __ _________ _____ ________ 131 ~ A ll selected item s excluding prem ium pay — 72 - - 3 2 3 5 6 6 - 17 17 3 3 - Company could not segregate establishm ent data fro m companywide data. Establishm ent could not segregate data fo r production and related w ork ers fro m data fo r all em p loyees. F igu re was com bined and reported with other expenditure item s. A pplies only to totals o f item s in each category . Reason not rep orted 2 2 2 2 V acations, holidays, and sick le a v e _________ Paid vacations _ .. .. Paid holidays _ Paid sick leave 1 2 3 4 1 95 3 54* 33 5 2 38 T A B L E 1 2 . — M e t h o d s o f e s t i m a t i n g e x p e n d it u r e s b y i t e m , 195 3 Number of Number of establishm ents in which estim ates were a rriv e d at by—— esta b lish ments Calculating Methods Method P rorating P rorating providing on basis of Other Past varied among among not estim ated related experien ce methods among plants e m p loy ees2 rep orted figu res data1 item s 3 Item V acations, holidays, and sick leave __ __ Paid vacations ________________________ Paid holidays ___________________________ Paid sick leave __ __ ______________ 64 72 109 24 40 49 78 14 8 6 9 4 _ - 1 1 1 - 3 11 13 2 8 _ - 4 5 8 4 P rem ium pay ________________ ____________ P rem ium pay for overtim e ___________ P rem ium pay fo r w ork on h o lid a y s ____ Shift prem ium p a y ____ ____ _______ 61 60 33 138 27 25 20 111 8 8 1 10 _ _ - 1 1 1 2 4 8 6 6 10 _ - 11 18 5 9 Total expenditures fo r pensions _______ P ast se rv ice cred its _________________ Current s e rv ice cred its ________________ 71 32 41 15 7 10 27 15 17 6 3 3 1 _ - 11 5 7 1 _ - 10 2 4 Insurance, health, and w elfare _________ F ixed co n tr ib u tio n ____ __ _______ L ife insurance __ ___________ ________ A ccidental death and dism em berm ent _ A ccid ent and sickness b e n e fits _______ H ospitalization __ ______ ______ ___ S urgical __ ________________ _________ M edical (other than s u r g ic a l)___________ Othe r ________________________________ 130 17 68 28 51 47 40 15 13 35 9 17 6 14 17 17 6 4 49 5 19 4 16 13 9 1 3 2 _ 4 1 3 20 1 13 6 7 7 6 4 4 2 _ _ _ _ 1 - 6 _ 7 4 4 1 2 2 - * 16 2 8 7 7 9 6 1 2 L ega lly required p a y m e n ts _______ *________ Old Age and S urvivors In s u ra n c e ______ Unemployment com pensation __ ____ W ork m en 's co m p e n s a tio n ______________ State tem p orary disability in su ra n ce___ 65 94 101 106 7 9 25 24 15 3 27 38 42 32 2 4 4 5 7 - 1 2 3 10 - 8 10 12 20 1 8 _ _ - 8 15 15 22 1 __ 14 1 4 - - - 8 1 .... _ 17 1 4 - - - 11 1 A ll selected item s _ A ll selected item s excluding prem ium pay - - - _ 1 Estim ate was a rriv ed at by applying an average rate or predeterm ined co st to appropriate number o f h ou rs, days, weeks^ m onths, w o rk e rs , etc. A rriv e d at by using ratio o f production and related w orkers to total em p loy ees. A pplies only to totals of item s in each category. 39 Although these m e t h o d s of estimation a ppear to be quite r e a sonable, they have shortcomings in precision, at least in principle. U s i n g a n a verage hourly or w e e k l y w a g e and the a v erage n u m b e r of w o r k e r s in computing holiday and vacation expenditures, for example, m a y fail to take account of absenteeism, ineligibility, or other fac tors affecting such expenditures. Prorating expenditures m a y result in a disproportionate share being attributed to one group because of differences in earnings levels, programs,, etc. Other possibilities, including simple arithmetical errors, m a y also influence these e s timates. H o w e v e r , recognizing the possibilities of overstatement, u n derstatement or error, the question insofar as expenditure surveys are c o n c e r n e d remains: A r e estimates so unreliable as to introduce a n appreciable overall bias into aggregate expenditure data and, if so, in w h a t direction? This question will be examined, along with other factors affecting expenditure levels, in the following section. 41 Factors Affecting Expenditure Levels Expenditure levels for selected items of supplementary r e m u n e r a t i o n a n d ratios of expenditures to payrolls, m a n - h o u r s , an d e m p l o y m e n t vary widely a m o n g manufacturing e stablishments. The r e m a i n d e r of this report is devoted to an examination of the factors m a k i n g for these differences a m o n g individual establishments in levels of expenditures an d variations a m o n g establishment groups classified b y industry, size, unionization, type of practice, and earnings levels. T h e question of actual as against estimated or calculated expenditure reporting, raised in the previous section, will be e x a m i n e d in c o n nection with aggregate data. It is important to e m p h a s i z e that the p r i m a r y purpose of this analysis is to provide guides for the d e v e l o p m e n t of survey tech nique so T h e data s h o w n in the a c c o m p a n y i n g tables and referred to in the text are not presented as m e a s u r e s of expenditure levels applicable to manufacturing as a whole. A m o n g responding estab lishments, those incurring no expenditures for the particular items studied and those unable to provide expenditure data w e r e omitted f r o m these tabulations. N o attempt w a s m a d e to correct for the varying response rates a m o n g industries an d a m o n g establishments of different sizes, as discussed earlier in this report. A cautionary note is app e n d e d to each table in order to discourage or prevent the use of these data outside of their relationship to this exploratory study. H o w e v e r , the large bo d y of expenditure information developed in the survey can be validly used to t h row light on a variety of q u e s tions important for survey planning. F o r e x a m p l e , the dispersion that can be expected in a value or series of values (e. g. , expendi tures for paid vacations) to be derived f r o m a survey has practical implications for s a m p l e design. T h e analysis of expenditure varia tions in this particular study s h o w s at least the m i n i m u m range within w h i c h variation in expenditure ratios are likely to occur in m a n u f a c turing. A distribution of expenditure ratios a m o n g a larger group of establishments might reveal a greater range; obviously the range w o u l d not be smaller. Establishment Expenditure Levels A s the tables a c c o m p a n y i n g this report show, there is a wide range a m o n g establishments in expenditure levels for the s a m e item as e x p r e s s e d in cents per hour, percent of payroll, and dollars per year per e m p l oyee. T o account for this range, it is n e c e s s a r y to c o n sider, first, the factors m a k i n g for variations a m o n g establishments in the dollar v o l u m e of expenditures and, second, the effect on relative expenditure levels of the conversion to the ratios c o m m o n l y used to c o m p a r e expenditures a m o n g establishments. 42 T h e type of practice and the length of time the practice w a s in effect (the full year or less) are but two of m a n y factors deter m i ning an establishment1s annual expenditure for the item. The n u m b e r of w o r k e r s e m p l o y e d is obviously a p r i m a r y determinant,, H o w e v e r , a s s u m i n g the s a m e e m p l o y m e n t level a m o n g establishments, a variety of other factors appear to account for the differences in expenditures a m o n g establishments with the s a m e paid holiday or paid vacation practice or identical insurance and welfare p r o g r a m s for the entire year. Listed be l o w are s o m e of these factors, other than size of the labor force.21 S o m e Factors Accounting for Variations A m o n g Establishments in Expenditures for Selected Items of S u p p l e m e n t a r y E m p l o y e e R e m u n e r a t i o n (Other T h a n Size of L a b o r Force) P a i d vacations T y p e of vacation policy El ig ibil ity r e quir e m e nt s Length-of-service distribution of labor force N u m b e r of hours paid for in vacation w e e k W a g e level M e t h o d of vacation p a y m e n t (e.g., regular w e e k l y pay, percent of annual earnings, etc.) T u r n o v e r of labor P a i d holidays N u m b e r of paid holidays Practice regarding p a y m e n t for holidays falling on nonscheduled w o r k d a y Eligibility requirements W a g e level M e t h o d of computing d a y fs pa y under incentive w a g e systems T u r n o v e r and seasonal fluctuations in e m p l o y m e n t A b s e n t e e i s m in holiday w e e k P r e m i u m p a y for overtime (including p r e m i u m pay for w e e k e n d w o r k ) V o l u m e of overtime w o r k Practice regarding daily overtime an d w o r k on Saturday and Sunday as such P r e m i u m rate paid W a g e level Differences in accounting procedures, w h i c h m a y apply to all of the items, although perhaps in varying degrees, a d d another c o m plication to any precise explanation of differences in expenditure levels. 43 Shift p r e m i u m pay V o l u m e of shift w o r k Shift p r e m i u m s paid W a g e level (where p r e m i u m s as percent of hourly rate) are e x p r e s s e d as P e n s i o n plans (excluding administrative costs) T y p e of p r o g r a m (provisions for vesting, disa bility and early retirement, n o r m a l retirement age, etc.) Level of benefits M e t h o d o f funding (pay-as-you-go, profit-sharing, etc.) A m o u n t of e m p l o y e e contributions, if any Rate and a m o u n t of funding of past service lia bility under self-insured funded plans Service, sex, and age composition of covered employees Eligibility requirements Rate of retirement; rate of mortality; return on investments, etc. Insurance, health, an d welfare plans (net expenditures, excluding administrative costs) T y p e of benefits provided (life insurance, h o s p i talization, etc.) Level a n d duration of benefits C o v e r a g e of dependents and retired w o r k e r s A m o u n t of e m p l o y e e contributions, if any A g e a n d sex composition of c o v e r e d e m p l o y e e s and nature of w o r k Eligibility requirements C l a i m experience W a g e level Contingency reserves; varying p r e m i u m charges, etc. Legally required p a y m e n t s Rate (where experience rating or individual State requirements are factors) Earnings level Location (re State t e m p o r a r y disability laws) C o m p a n y practice (when p a y m e n t s are m a d e p r e payment, delinquency and fines, etc.) All other things being equal— i.e., type of practice, eligi bility requirements, w a g e levels, etc.— the conversion of equiva lent dollar expenditures into cents per hour, percent of payroll, and dollars per year per e m p l o y e e introduces the largely unrelated influence of differences in annual m a n - h o u r s and gross payrolls and 4 4 in the nature o f e m p lo y m e n t .22 The e ffe c t o f d iffe r e n c e s in m a n hour s is illu stra te d by a sim p le h y p oth etica l ex a m p le o f two e s ta b lish m en ts with the sam e paid h olid a y p r a c t ic e , e m p lo y m e n t, a v e r age h ou rly ea rn in gs le v e l, and e x p e n d itu re s, but with a d iffe re n t v olu m e o f h ou rs paid fo r during the y e a r , as fo llo w s : E s ta b lis h m ent A A v e r a g e e m p loy m en t .._____ ___ . . . A v e r a g e h o u rly ea rn in gs ________ E xp en d itu res fo r 6 paid h o li days (6 X 8 X $2 X 500) . . . ______ A v e r a g e m a n -h o u rs p er y e a r ___ G r o s s p a y ro ll _____________________ E xp en d itu res p er p a y ro ll h ou r: ( E xpenditure s ) (T o ta l m a n -h o u r s ) P e r c e n t o f p a y ro ll: ( E xp en d itu res ) ( Gr o s s p a y r o ll) ~ ~ E s ta b lis h m ent B 500 500 $ 2 . 00 $2 o00 $ 4 8 ,0 0 0 $ 4 8 ,0 0 0 2, 100 2,000 $2, 100,000 $ 2 ,0 0 0 ,0 0 0 4 . 57 £ 4 . 8£ 2 .2 9 % 2 .4 % If we w e r e to a ssu m e , fu r t h e r , that E sta b lish m en t A a v e ra g e d 100 h ou rs o f o v e r tim e w o rk p er e m p lo y e e (in clu d ed in the 2, 100 h o u rs ), paid fo r at tim e and one - h a lf, the d iffe r e n c e b etw een the two esta b lish m en ts in p e rce n t o f p a y r o ll w ould be w id en ed , as fo llo w s : E s ta b lis h m ent A G r o s s p a y ro ll ___ P e r c e n t o f p a y ro ll $ 2 , 1 5 0,0 00 2 .2 3 % E s ta b lis h m ent B $ 2 ,0 0 0 ,0 0 0 2 .4 % In the above e x a m p le , ex p en d itu res fo r paid h olid a y s p er e m p lo y e e w ou ld be id e n tica l fo r the two e sta b lish m e n ts ($ 9 6 ). H ow e v e r , em p loy m en t p r a c t ic e s v a ry so w id e ly betw een e s ta b lis h m e n ts , owing to t u r n o v e r , a b s e n te e is m , s e a so n a lity , e t c . , that it is un r e a lis t ic to a ssu m e eith er a r e a l equ a lity in a v e ra g e em p loy m en t le v e ls o r equ ivalen t annual ex p en d itu res fo r a given a v e ra g e e m p lo y m ent le v e l. In oth er w o r d s , th ere is u su ally an a p p re cia b le d iffe r e n c e betw een dividing ex p en d itu res by a v e ra g e em p loy m en t and dividin g e x penditure s by the nu m ber o f w o r k e r s a ctu a lly sharing in the e x p e n d i tu r e . T h u s, expen diture s p er y e a r p er e m p lo y e e a re a ls o su b je ct to a d is to rtio n a ris in g fr o m the c o n v e r s io n . Using the above e x a m p le , this d isto rtio n can be illu stra te d sim p ly by a ssu m in g that out o f the 22 F o r an extended d is c u s s io n o f th ese p r o b le m s , see C om puting the C o sts o f F rin g e B e n e fits, N ational In du stria l C o n fe re n c e B o a rd , Studies in P e r s o n n e l P o lic y , N o. 128, 1952. 45 a v e ra g e o f 500 e m p lo y e e s fo r E sta b lish m en t B an a v e ra g e o f 50 e m p lo y e e s did not r e c e iv e 6 paid h o lid a y s, by r e a s o n o f s h o r t -t e r m em p loy m en t, a b s e n te e is m , e t c . Thus: E s ta b lis h m ent A A v e r a g e em p loy m en t __ _ _ A v e r a g e nu m ber r e c e iv in g h olid a y pay _ _ _ E xp en d itu res fo r 6 paid h olid a y s A v e r a g e p er e m p lo y e e ( E xpenditur e s ) (----------------------- ) ------------------------ E sta b lis h m en t B 500 500 500 450 $ 4 8 ,0 0 0 $ 4 3 ,2 0 0 $ 9 6 .0 0 $ 8 6 .4 0 M any o f the fa c t o r s in flu en cin g g r o s s expen ditu re le v e ls and the com p u ted expen ditu re r a tio s am ong e sta b lish m e n ts a ls o a ccou n t fo r ch an ges in the sam e e sta b lish m e n t fr o m one y e a r to a n oth er. C hanges in the v olu m e o f o v e rtim e w o rk , fo r e x a m p le , not on ly m ake fo r ch an ges in e x p en d itu res fo r p re m iu m pay but a ls o a ffe ct the p e r c e n t -o f-p a y r o ll r a tio s fo r oth er ite m s . E ven with the sam e p r a c t ic e s in e ffe c t , it is apparent that e sta b lish m e n t e x p en d itu res fo r a g iv en item in cen ts p er hour w ou ld fluctuate fr o m y ea r to y e a r , p o s s ib ly sim p ly as a co n s e q u e n ce o f a r is e o r fa ll in tota l m a n -h o u r s . The m o st unstable ex p en d itu res a re lik e ly to be fo r p re m iu m pay fo r o v e r tim e and shift w o rk , sin ce ex p en d itu res depend la r g e ly on the v olu m e o f such w o rk ; and ex p en d itu res fo r p e n sio n s , p a r tic u la rly fo r funding o f past s e r v ic e lia b ility and fo r p r o fit - sharing tru st funds, w h ich m a y be d e te rm in e d in la rg e m e a s u re by the p r o fit p o sitio n o f the esta b lish m e n t and by ch an ges in tax la w s . A v e r a g e E xpenditure R a tio s With the w ide range o f expen ditu re r a tio s am ong e s t a b lis h m en ts, an a rith m e tic a v e ra g e o f the e sta b lish m e n t ra tio s p r o v id e s the m o s t con ven ien t d e v ice fo r d eterm in in g w hether th ere a re s ig n if icant d iffe r e n c e s in ex p en d itu res betw een e sta b lish m en ts g ro u p e d a c c o r d in g to a co m m o n c h a r a c t e r is t ic . A s p r e v io u s ly ex p la in ed , th is su rv e y was not d e sig n e d to p e rm it the ca lcu la tio n o f any a v e ra g e e x penditu re le v e l a p p lica b le to a ll m anufacturin g o r to the sep a ra te in d u stry g ro u p s . H ow ev er, to m e a su re the d iffe r e n c e s in e x p e n d i tu re s am ong e sta b lish m e n ts a c c o r d in g to the c h a r a c t e r is t ic s u su a lly c o n s id e r e d im p orta n t in sam pling te ch n iq u e s, such as s iz e , o r in co n n e ctio n with a p a r tic u la r p r a c t ic e , the com p u tation o f a sin gle fig u re re p re s e n ta tiv e o f the a r r a y w as n e c e s s a r y . A c h o ic e betw een two ty p es o f a v e r a g e s w as p r e s e n te d . One w as to com p u te, if p o s s ib le , a v e r a g e s applying to a ll esta b lish m e n ts in the su rv e y , including e sta b lish m e n ts with z e r o ex p en d itu res ( i . e . , no p r a c t ic e in e ffe c t o r no ex p en d itu res in c u r r e d ) and, by som e m ethod 46 o f in fe r e n c e , the esta b lish m e n ts w h ich co u ld not r e p o r t ex p en d itu res fo r p a rticu la r ite m s * The a ltern a tiv e m eth od, w h ich w as adopted in this su rv e y , w as to commute a v e r a g e s co v e rin g on ly e sta b lish m e n ts re p o rtin g an e x p e n d itu re « 3 The c h ie f advantage o f an a v e ra g e o f expen ditu re r a t io s , a sid e fr o m its g r e a te r fle x ib ility in u se , la y in p e rm ittin g the exa m in a tion o f ex pen ditu re v a ria tio n s apart fr o m v a ria tio n s in the p re v a le n ce o f the individual p r a c t i c e s . C o m p a riso n s am ong esta b lish m e n t g rou p s in p en sion ex p e n d itu re s, fo r e x a m p le , w ou ld thus be lim ite d to e s t a b lis h m ents having a p en sion plan in e ffe c t (and able to r e p o r t ex p en d itu res fo r the y e a r ). The s p e cia l c h a r a c te r o f such a v e r a g e s and th e ir lim ita tio n s should be b orn e in m ind; o b v io u s ly the data d is c u s s e d in the fo llo w in g p ages should not be im pu ted to any la r g e r sam ple o r g rou p o f e sta b lish m e n ts w h ich w ould in clu d e e sta b lish m e n ts without the p a r tic u la r p r a c t ic e in e ffe c t . A ctu a l and E stim a te d R e p o rtin g . — In the p re v io u s s e ctio n o f this r e p o r t , the q u estion w as r a is e d as to w hether the re p o rtin g o f e stim a te d o r ca lcu la te d fig u r e s in p la ce o f actu al fig u r e s in tro d u ce d an a p p re cia b le b ia s into a g g re g a te data. C o m p a ris o n s o f a v e ra g e expen ditu re r a tio s betw een e sta b lish m e n ts p rov id in g actu al fig u re s and th ose p ro v id in g e stim a te d fig u r e s show ed r e la tiv e ly sligh t and in co n siste n t d iffe r e n c e s fo r the ite m s studied. V irtu a lly no s ig n ifi cant d iffe r e n c e w as r e fle c t e d by the a v e r a g e s fo r actual fig u r e s and fo r a ll re p o rtin g e sta b lish m e n ts co m b in e d ; that is , the in clu sio n o f e stim a te d fig u r e s had only a n e g lig ib le e ffe c t on o v e r a ll data. In c e n t s - p e r - p a y r o l l h ou r, the la r g e s t d iffe r e n c e s betw een the a v e r a g e s fo r actual fig u r e s and fo r a ll r e p o r ts am ong the in dividu al ite m s (ex clu d in g f,a ll s e le c te d it e m s 1* and f,a ll s e le c te d ite m s exclu d in g p re m iu m pay**) am ounted to 0 .2 cen ts fo r total p re m iu m pay (table 13). F o r a ll oth er ite m s , the a v e ra g e s w e re id e n tica l o r d iffe r e d by 0 .1 ce n t. In a v e ra g e p e rce n t o f p a y r o ll, no d iffe r e n c e 2 3 The fo r m u la s fo r com puting the r a tio s u se d —cent 9 -pen -pay r o ll hojir^ c e n t s - p e r - a d ju s t e d - p a y r o ll h ou r, p e rce n t o f p a y r o ll, and ex p en d itu res p er e m p lo y e e p e r y e a r — w e r e d e s c r ib e d in the fir s t s e c tion o f this r e p o r t . The a v e ra g e ra tio is a sim p le a rith m e tic a v e ra g e o f the e sta b lish m e n t r a t io s , w hich was the a v e ra g in g d e v ice co n te m p lated in the sa m p le d e sig n . T h is fo r m o f a v e ra g e is in flu en ced by the s iz e (em p lo y m e n t) o f the e sta b lish m e n ts in the sa m ple b e ca u se o f the v a ry in g p ro p o r tio n s o f e sta b lish m e n ts in ea ch s iz e c la s s that w e re in clu d ed . F o r e x a m p le , an esta b lish m en t em p loy in g 100 w o r k e r s had an eq u iva len t w eight in the tabu lation s to one o f 1 ,0 0 0 w o r k e r s . H ow ev er, the sm a ll e sta b lish m e n t had on ly about o n e -te n th the ch an ce o f in c lu s io n o f the la r g e r e sta b lish m e n t. T hu s, e a ch b lo c k o f 1 ,0 0 0 w o r k e r s — e . g . , th ose in 10 e sta b lish m e n ts o f 100 w o r k e r s e a ch o r in 1 esta b lish m e n t o f 1 ,0 0 0 w o r k e r s — had a p p ro x im a te ly equal in flu en ce on the a v e r a g e s . 47 T A B L E 1 3 . ——A v e r a g e e x p e n d itu r e s p e r p a y r o ll h o u r fo r r e p o r tin g A il r e p o r t s Item N u m b er of e sta b lis h m e n ts r e p o r t in g e x p e n d i tu re s A v era g e per p a y r o ll h our (ce n ts ) e s ta b lis h m e n ts o n ly * A c tu a l fig u r e s N um be r of esta b lis h m e n ts r e p o r t in g e x p e n d i tu re s A v era g e per p a y r o ll h our (ce n ts ) b y ite m a n d n a tu re E s tim a te d fig u r e s N um ber of esta b lis h m e n ts r e p o r t in g e x p e n d i tu r e s A v era g e per p a y r o ll h ou r (ce n ts ) of r e p o r t, 1953 S om e a ctu a l; s o m e e s t im a t e d 1 N u m ber of A v era g e esta b per p a y r o ll lis h m e n ts h ou r r e p o r t in g e x p e n d i (ce n ts ) tu r e s V a ca tio n , h o lid a y s , and s i c k le a v e —----------- ----P a id v a c a t i o n s ------- -----------------------------------------P a id h o l i d a y s ------------------------------- —-----------------P a id s i c k l e a v e -------------------------------------------------- 528 524 471 87 9 .2 5. 8 3 .4 1 .7 408 452 362 63 9. 1 5 .8 3 .4 1. 7 64 72 109 24 9 .3 5. 6 3. 6 1 .7 56 P r e m iu m p a y --------------------------------------------------------P r e m iu m p a y f o r o v e r t i m e --------- -------------------P r e m iu m p a y f o r w o r k on h o l i d a y s -------------Shift p r e m iu m p a y ------------------ ------- ------------------ 454 406 103 361 9. 1 7 .2 .5 2 .4 292 346 70 22 3 8 .9 7. 3 .5 2 .5 61 60 33 138 8 .5 6. 7 .5 2 .4 101 - - - - T ota l e x p e n d itu re s f o r p e n s i o n s ------- ------------------P a s t s e r v ic e c r e d it s —---------------------- -------------C u rr e n t s e r v ic e c r e d i t s ---------------------------------- 2 71 104 185 7 .0 3 .8 4 .9 196 72 144 6 .9 3 .9 4 .9 71 32 41 7 .4 3. 7 4 .9 4 (2 ) - - - - I n s u r a n c e , h ealth , and w e lfa r e ------------------- ------F ix e d c o n t r i b u t i o n -------------------------------------------L ife i n s u r a n c e ------------------ —-----------------------------A c c id e n t a l death and d is m e m b e r m e n t --------A c c id e n t and s ic k n e s s b e n e f i t s ------ ---------- ----H o s p it a l i z a t io n -------------------------------- -— ------------S u r g i c a l -------------------------- ----------------------------------M e d ic a l (oth er than s u r g i c a l ) ------------------------O th er -------------------------------------------------------------------- 482 92 196 64 153 124 103 32 22 3. 1 2 .9 .8 . 1 1. 1 1. 1 .5 .3 .6 334 75 128 36 102 77 63 17 9 3. 1 2 .9 .9 . l 1 .2 1. 1 .6 3. 1 (2 ) .8 . 1 .9 1 .0 .5 (?) <2 ) 18 (*) - {a! (*>. 130 17 68 28 51 47 40 15 13 - - L e g a lly r e q u ir e d p a y m e n t s --------------- -----------------O ld A g e and S u r v iv o r s I n s u r a n c e ----------------U n em p loy m en t c o m p e n s a t i o n ------------------------W o r k m e n 's c o m p e n s a t i o n -------------------------------State t e m p o r a r y d is a b ilit y i n s u r a n c e ----------- 524 516 515 517 38 6 .5 2 .5 2 .3 1 .6 . 7 387 422 414 411 31 6 .5 2 .5 2 .3 1 .7 .7 65 94 101 106 7 6 .2 2 .5 2 .2 1 .5 C2 ) 72 6 .4 “ (2 ) 240 3 1 .4 (2 ) 211 2 3 .6 A ll s e le c t e d i t e m s ----------------------------- ------- ——------- 419 3 0 .8 165 29 . 7 14 A l l s e le c t e d ite m s ex c lu d in g p r e m iu m p a y ------ 478 2 2 .2 250 2 0 .8 17 10. 0 - - - - “ - - “ 9 .8 - - - - - - - - - 1 A p p lie s o n ly to to ta ls o f ite m s in e a c h c a t e g o r y , 2 N u m ber o f e s ta b lis h m e n ts to o s m a ll to ju s t ify co m p u ta tio n o f an a v e r a g e . * The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ied w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts unable to p r o v id e e x p e n d itu re data. 4 8 g re a te r than 0. 1 p e rce n t a p p ea red ; m o s t o f the a v e r a g e s w e r e id e n tica l (tab le 14). The sta b ility o f the a v e ra g e s fo r a ll r e p o r t s co m b in e d is fu rth er illu stra te d by the data on ex p en d itu res p er e m p lo y e e p er y e a r (table 15) w h ich r e v e a le d a m a xim u m d iffe r e n c e (fo r total p re m iu m pay) o f $4 a y ea r per e m p lo y e e as m e a s u re d again st an a v e ra g e expen ditu re le v e l o f c lo s e to $ 2 0 0 . The a v e r a g e s fo r actual and e stim a te d r e p o r t s , as shown in th ese th re e ta b le s , w e re re m a rk a b ly c lo s e , co n s id e r in g the sm a ll nu m ber o f o b s e rv a tio n s upon w h ich they w e re b a s e d . D iffe r e n c e s o f th ese s m a ll m agn itu des can be ca u se d by a nu m ber o f fa c t o r s oth er than estim a tin g e r r o r s . In sh o rt, no e v id e n ce o f a co n s iste n t b ia s , upw ards o r d ow n w ards, was p re se n te d by th ese c o m p a r is o n s . On the oth er hand, the a v e ra g e s fo r v a ca tio n s , h olid a y , and s ic k lea v e ex p en d itu res co m b in e d , fo r total p re m iu m pay, fo r ,!a ll s e le c te d ite m s , ,! and fo r " a ll s e le c te d item s ex clu d in g p re m iu m pay pay, " w h ich w e re b a se d on fig u r e s in part actual and in p art e stim a te d , w e r e co n s is te n tly h igh er than the a v e ra g e s b a se d upon a ll r e p o r ts (ta b le s 13, 14, 15). T his m ay have b een , in p art, the co n se q u e n ce o f re p o rtin g e r r o r s , although it is im p o s s ib le to d e te rm in e to what extent the e r r o r s la y in the e stim a te d p o rtio n o f th ese fig u r e s . An o v e rla p o f the e s t a b lis h m e n t s actual fig u r e s and its e s tim a te s m ay have b een r e s p o n s ib le fo r an o v e rsta te m e n t in th ese to ta ls . It is a ls o p o s s ib le that the esta b lish m e n ts re p o rtin g on this b a s is had m o r e individual ite m s in e ffe c t than the e sta b lish m e n ts p ro v id in g actual fig u r e s . A t any ra te , the im p a ct o f th ese fig u r e s on the a v e ra g e s fo r a ll r e p o r ts w as sligh t o r n e g lig ib le .24. W ithout d is m is s in g as in con seq u en tia l the p r o b le m attach ed to obtaining e stim a te d ex p en d itu res and the n eed fo r m o r e exhaustive scru tin y o f e sta b lish m e n t re p o rtin g o f e x p en d itu res b a se d in part on e s tim a te s , th e re a p p e a rs to be no p r e s s in g n eed to p re se n t actu al and estim a te d data se p a ra te ly in the tabu lation s a cco m p a n y in g this r e p o r t . In the a ccom p a n y in g d is c u s s io n , the c o n c lu s io n s draw n fr o m the com b in e d data w ould not be sig n ifica n tly d iffe re n t if they w e re to be b a se d s o le ly on actual fig u r e s . E xp en d itu res p er A d ju sted P a y r o ll Hour. ------A s p r e v io u s ly noted, e sta b lish m e n t ex p en d itu res can be re la te d , with m ean in g, eith er to total m a n -h o u rs paid fo r ( c e n t s - p e r - p a y r o ll h ou r) o r to an adju sted h ou rs total om ittin g the v a ca tio n , h olid a y , and s ic k lea v e h ou rs paid fo r and taken (c e n t s -p e r -a d ju s t e d -p a y r o ll h o u r). In the a ccom p a n yin g ta b le s , one o r the oth er c e n t s -p e r -h o u r ra tio w as u sed , but not 24 It is n otew orth y that in the ca s e o f tota l p re m iu m pay the a v e ra g e s fo r the e stim a te d and the p a r tia lly e stim a te d fig u r e s d iffe r e d in op p o site d ir e c tio n s fr o m the a v e ra g e o f actual fig u r e s . 49 T A B L E 1 4 .— A v e r a g e e x p e n d itu r e s as p e r c e n t o f p a y r o ll fo r r e p o r tin g A ll r e p o r t s Item N u m ber of esta b lis h m e n ts r e p o r t in g e x p e n d i tu r e s A v era g e percen t of p a y r o ll e s ta b lis h m e n ts A ctu a l fig u r e s N u m ber of esta b lis h m e n ts r e p o r tin g e x p e n d i tu re s A v era g e percen t of p a y r o ll o n ly * b y ite m and n a tu re E s tim a te d fig u r e s N u m ber of e sta b lis h m e n ts r e p o r t in g e x p e n d i tu r e s A v era g e percent of p a y r o ll of rep o rt, 1953 S om e a ctu a l; s o m e e s t im a t e d 1 N um ber of A v era g e esta b percen t lis h m e n ts of r e p o r t in g p a y r o ll e x p e n d i tu re s V a c a tio n s , h o lid a y s , and s i c k l e a v e -----------------P a id v a c a tio n s ---------- *------------------------------------— P a id h o l i d a y s ---------------------------------- -----------------P a id s i c k le a v e ------------------------------------------------- 528 524 471 87 4 .9 3. 1 1 .8 .9 408 452 362 63 4. 8 3. 1 1 .8 .8 64 72 109 24 4. 8 2 .9 1 .9 .9 P r e m iu m p a y -------------------------------------------------------- P r e m iu m pay f o r o v e r t im e --------------------------P r e m iu m p a y f o r w o r k on h o l i d a y s -------------Shift p r e m iu m p a y ------------------------------------------ — 454 406 103 361 4 .8 3 .9 .3 1 .2 292 346 70 223 4. 7 3 .9 .3 1 .2 61 60 33 138 4. 7 3 ,8 .3 1 .2 101 _ * - T o ta l e x p e n d itu re s f o r p e n s i o n s ------------------------P a s t s e r v ic e c r e d it s -------------------------------- ------ C u rr e n t s e r v ic e c r e d it s ---------------------------------- 271 104 185 3. 5 1 .9 2. 5 196 72 144 3. 5 1 .9 2 .4 71 32 41 3. 8 2 .0 2. 5 4 _ (2 ) - - I n s u r a n c e , h ea lth , and w e lfa r e — ---------------------F ix e d c o n tr ib u tio n ------------------------------------------L ife in s u r a n c e --------------- ------------------------ ---------A c c id e n t a l death and d is m e m b e r m e n t --------A c c id e n t and s ic k n e s s b e n e fits -------------- ------H o s p ita liz a tio n ------------------------------------------------S u r g ic a l ---------------------------------- --------------------------M e d ic a l (oth er than s u r g i c a l ) --------------- ------— O t h e r -------------------------------------------------------------------- 482 92 196 64 153 124 103 32 22 1. 7 1 .6 .5 (3 ) .6 .6 .3 .1 .4 334 75 128 36 102 77 63 17 9 1. 7 1 .6 .5 (3 ) .6 .6 .3 (2 ) (2 ) 130 17 68 28 51 47 40 15 13 1, 7 (2 ) .4 (3 ) .5 .6 .3 (2 ) (2 ) 18 _ _ _ (2 ) - - L e g a lly r e q u ir e d p a y m e n ts --------------------- ------------Old A g e and S u r v iv o r s In s u ra n ce ----------------U n em p loy m en t c o m p e n s a t i o n --------------------- -— W o r k m e n ’ s c o m p e n s a t i o n ---- ---------------------------State t e m p o r a r y d is a b ilit y in s u r a n c e ---------- 524 516 515 517 38 3 .6 1 .4 1 .3 .9 .4 387 422 414 411 31 3. 7 1 .4 1 .4 .9 .4 65 94 101 106 7 3. 3 1 .4 1 .2 .8 (2 ) 72 A l l s e le c t e d ite m s ------------------------------------------------- 419 1 6 .5 165 1 5 .9 14 (2 ) 240 1 7 .0 A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y ------ 478 1 1 .9 250 1 1 .3 17 (2 ) 211 12. 6 56 ■ - 5. 3 _ > - 5 .2 _ _ _ _ - - _ _ _ _ - 3. 6 _ _ - - - - - - 1 A p p lie s o n ly to to ta ls o f ite m s in e a c h c a t e g o r y . 2 N u m b er o f e s ta b lis h m e n ts to o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e . 3 L e s s than 0 .0 5 p e r c e n t . * T h e a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e ex p en d itu re data. 5 4% 50 T A B L E 1 5 ,— A v e r a g e e x p e n d itu r e ® per year per e m p lo y e e fo r r e p o r tin g A ll r e p o r t s Item e s ta b lis h m e n t® o n ly * b y ite m an d n a tu re of r e p o r t, 1953 S om e a ctu a l; fig u r e s s o m e e s t im a t e d 1 N u m ber N u m ber A v era g e A v era g e A v era g e of of esta b esta b per per per lis h m e n ts year year year lis h m e n ts r e p o r t in g r e p o r tin g per per per e m p lo y e e e x p e n d i- e m p lo y e e e x p e n d i e m p lo y e e tu r e s ‘ tu re s E s tim a te d fig u r e s A ctu a l N u m ber N u m ber A v era g e of of per esta b esta b lis h m e n ts year lis h m e n ts per r e p o r t in g r e p o r t in g e x p e n d i e m p lo y e e e x p e n d i tu re s tu r e s V a c a tio n s , h o lid a y s , and s i c k l e a v e -----------------P a id v a c a tio n s -------*------------------- ----------------------P a id h o l i d a y s ----------------------------------------------------P a id s i c k l e a v e --------------------------------------------------- 528 524 471 87 $19 2 120 72 37 408 452 362 63 $19 0 120 71 37 64 72 109 24 $ 19 3 118 75 37 56 $ 21 0 - - P r e m iu m p a y ----------------------------------------------------------P r e m iu m p a y f o r o v e r t im e ---- --------------- --------P r e m iu m p a y f o r w o r k on h o lid a y s -------------Shift p r e m iu m p a y --------------------------- -------------- - 454 406 103 361 196 158 12 51 292 346 70 223 192 159 11 52 61 60 33 138 T o ta l ex p e n d itu r e s f o r p e n s i o n s ---------------------— P a s t s e r v ic e c r e d i t s ----------------------------------------C u rr e n t s e r v ic e c r e d it s ----------------------------------- 271 104 185 149 81 104 196 72 144 148 83 104 71 32 41 In s u r a n c e , h ea lth , and w e lfa r e —— ---------------------F ix e d c o n tr ib u tio n — ----------------------------------------L ife in s u r a n c e -------------------------------------------------A c c id e n t a l death and d i s m e m b e r m e n t ---------A c c id e n t and s ic k n e s s b e n e f i t s ---------------------H o s p it a l i z a t io n --------------------------------------------------S u r g i c a l -------------------------------------------—-------------- — M e d ic a l (o th e r than s u r g i c a l ) -------------------- — O t h e r -------------------------------------------------------------------- 482 92 196 64 153 124 103 32 22 65 59 18 2 23 22 11 6 12 334 75 128 36 102 77 63 17 9 65 59 18 2 25 22 12 130 17 68 28 51 47 40 15 13 L e g a lly r e q u ir e d p a y m e n t s ---------------------------------O ld A g e and S u r v iv o r s I n s u r a n c e ----------------- U n em p loy m en t c o m p e n s a t io n ------------- ----------W o r k m e n 's c o m p e n s a t i o n -----------------------------State t e m p o r a r y d is a b ilit y i n s u r a n c e ------------ 524 516 515 517 38 135 52 47 34 15 387 422 414 411 31 136 52 48 35 15 A l l s e le c t e d i t e m s ------- ------------------------------------------ 419 649 165 A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y ------ 478 464 250 , - - - - 188 148 13 49 101 210 - 155 77 106 - - - - 4 - (2 ) - 65 (2 ) 17 3 18 21 11 <*> (2 ) 18 (2 ) 65 94 101 106 7 128 52 46 31 (2 ) 72 - - 62 7 14 (2 ) 240 663 434 17 (2 ) 211 496 0 (2 ) - - _ - _ _ _ - - - 132 - - 1 A p p lie s on ly to to ta ls o f ite m s in e a ch c a t e g o r y . 2 N u m b er o f e s ta b lis h m e n ts to o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e . * The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e e x p en d itu re data. 51 both,25 T h e general relationship b e t w e e n the averages c o m p u t e d on the basis of total m a n - h o u r s and of adjusted m a n - h o u r s is s h o w n in table 16. O n the whole (and considering the possible effects of r o u n d ing), the averages b a s e d on adjusted m a n - h o u r s w e r e about 5 percent higher than those b a s e d on total payroll hours. Variations b y Size of Establishment.— Although expenditures varied widely a m o n g establishments in each of the five size classifica tions used, on the average large establishments h a d higher expenditure ratios than small establishments on the s u m of all the items of supple m e n t a r y e m p l o y e e rem u n e r a t i o n studied and on m o s t of the individual voluntary practices. T h e reverse order, however, held for specific items such as p r e m i u m pay for overtime an d legally required p a y me n t s . T h e s e relationships are set forth in t e r m s of cents-per-pay roll hour (table 17) an d percent of payroll (table 18). F o r paid vacations, paid holidays, paid sick leave, an d the total for this group, cents-per-hour and percent~of“ payroll averages increased progressively with the increase in the size classification. F o r example, average expenditures per payroll hour for paid vacations r a nged f r o m 4 cents for establishments with fewer than 100 w o r k e r s to about 7 cents for establishments with m o r e than 5,000 w o rkers. In percent of payroll, the corresponding range w a s f r o m 2.4 percent to 3.5 percent. Although the size variations in cents per hour w e r e undoubtedly influenced by differences in earnings levels, the variation in percent of payroll for these items indicates that, on the average, practices a m o n g the size classes differed in their liberality or in their effect. Expenditures for overtime p r e m i u m pay reflected a contrary tendency; that is, in cents per hour and percent of payroll the averages d e c r e a s e d s o m e w h a t as the size category increased, with but one e x ception. H o w e v e r , average expenditures for shift p r e m i u m pay w e r e m a r k e d l y higher for the larger establishments, as w a s average total p r e m i u m pay. P e n s i o n expenditures per hour and as a percent of payroll w e r e not notably different a m o n g the size classes; for insurance b e n e fits, cents-per-hour expenditures w e r e higher for the larger establish ments, but percent-of-payroll averages w e r e at approximately the s a m e level. Legally required p a y m e n t s represented a progressively smaller percent of payroll, on the average, as the establishment-size g r o u p ings increased. T h e s a m e situation w a s reflected in t e r m s of cents 25 Similarly, expenditures per e m p l o y e e per year are not s h o w n for all b r e a kdowns. 52 T A B L E 1 6 .— D iffe r e n c e betw een a v e r a g e e x p e n d itu re s p e r p a y r o ll h ou r and a v e r a g e e x p e n d itu re s p e r a d ju s te d p a y r o ll h o u r, 1 f o r r e p o r tin g e s ta b lis h m e n ts o n ly * by ite m , 1953 D iffe r e n c e A v era ge per p a y r o ll hour (ce n ts ) A v era ge per a d ju ste d p a y r o ll h ou r 1 (ce n ts ) V a c a tio n s , h o lid a y s , and s ic k le a v e ------ ---------P a id v a c a tio n s ----------- -— —---------- ------------------P a id h o l i d a y s -------------- —-----------------------------------P a id s i c k le a v e ----- ------—---------------------- -— ------- 9 .2 5. 8 3 .4 1. 7 9 .8 6. 1 3. 7 1 .9 P r e m iu m pay --------------------------------------------------------P r e m iu m p a y f o r o v e r t i m e ----------------------------P r e m iu m p a y f o r w o r k on h o lid a y s -------------Shift p r e m iu m pay — —------------------------------------- 9. I 7, 2 .5 2 .4 9. 7. . 2. T o ta l e x p e n d itu r e s f o r p e n s io n s ----------- ------------P a s t s e r v ic e c r e d it s ----------- ----- ----------- —------— C u rr e n t s e r v ic e c r e d it s — --------------------- —------ Item Cen ts P ercen t2 0 .6 .3 .3 .2 6 .5 5 6 6 6 .4 ,4 .1 .2 4 .4 7 .0 3. 8 4 .9 7 .4 4. 0 5 .2 .4 .2 ,3 5. 7 In s u r a n c e , h ealth , and w e lfa r e ■— ---------- ----------F ix e d co n tr ib u tio n ---------------- —----------------------L ife in s u r a n c e ------------- ----------------—----------------A c c id e n t a l death and d is m e m b e r m e n t —— — A c c id e n t and s ic k n e s s b e n e f i t s ---------------------H o s p ita liz a tio n — -------------------------------------- — S u r g i c a l -------------- --------- --------------------------------------M e d ic a l (oth er than s u r g ic a l) ------- ------ --------O ther -------- ------------------------------- —--------- ------------- 3. 1 2 .9 .8 . 1 1. 1 1. 1 .5 .3 . 6 3.3 3. 1 .9 . 1 1 .2 1. 1 .6 .3 . 7 .2 .2 .1 . 1 , 1 .1 6. 5 L e g a lly r e q u ir e d p a y m e n t s ------ ---------------------------O ld A g e and S u r v iv o r s I n s u r a n c e -----------------U n em p loy m en t co m p e n s a tio n ----------- ■------------W o r k m e n 's c o m p e n s a t i o n -------------------------------State t e m p o r a r y d is a b ilit y in s u r a n c e ---------- 6. 5 2 .5 2,3 1 .6 . 7 6. 8 2. 6 2 .4 1. 7 .8 . . . . . 3 1 1 1 1 4. 6 A ll s e le c t e d i t e m s -------------—— — ----------- ------------- 30. 8 32. 5 1 .7 5. 5 A ll s e le c t e d ite m s ex clu d in g p re m iu m p a y ------ 2 2 .2 23. 5 1 .3 5 .9 1 A d ju s te d p a y r o ll h o u rs = to ta l p a y r o ll h o u rs le s s v a c a tio n , h o lid a y , and s i c k le a v e h o u rs pa id f o r and taken. 2 C om pu ted on ly f o r to ta ls o f ite m s in e a ch c a t e g o r y . * T he a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s f o r the p a r t ic u la r ite m s stu d ied w e r e e x clu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e exp en d itu re data. 5 5 4% 53 T A B L E 17.- — Expenditures per payroll hour for reporting establishments only* by item and size of establishment, 1953 N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu r e s of— Item and s iz e o f e s ta b lis h m e n t of A v era g e e s t a b lis h per m e n ts p a y r o ll r e p o r tin g hour e x p e n d i (ce n ts ) tu r e s 4 6 2 and U nder and and u nd er u n d er u nd er 2 6 8 ce n ts 4 cen ts ce n ts ce n ts 10 8 12 and and and u n d er u n d er u n d er 10 12 14 c e n ts ce n ts c e n ts 16 18 M and and and u nd er under u nd er 18 20 16 ce n ts c e n ts ce n ts 20 ce n ts and over V a c a tio n s , h o lid a y s , and s ic k le a v e _ __ ------------------------ -------U nder 100 e m p lo y e e s ____ __ 100 - 499 e m p l o y e e s ______ __ 500 - 999 e m p l o y e e s ________ _ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ----5 ,0 0 0 and o v e r ________________ 528 37 152 76 200 63 9 .2 6. 3 7 .4 8. 8 10. 5 12. 0 22 6 12 3 1 - 35 3 17 4 11 - 49 9 23 7 9 1 78 6 32 15 17 8 122 7 34 21 51 9 103 4 20 13 54 12 60 1 6 6 30 17 P a id v a c a tio n s _____ ______ _____ U nder 100 e m p lo y e e s _ 100 - 499 e m p lo y e e s ... _ _ _ 500 - 999 e m p lo y e e s ________ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ____ 5 ,0 0 0 and o v e r __ _____ __ __ 524 39 150 76 197 62 5. 8 4. 0 4 .6 5 .4 6 .6 7 .2 34 9 19 5 1 - 98 13 45 15 21 4 158 9 50 27 59 13 140 — 21 24 67 22 63 1 11 3 31 17 22 1 4 13 4 7 1 4 2 2 1 1 - - P a id h o lid a y s _______________ __ U nder 100 e m p lo y e e s _ __ __ 100 - 499 e m p lo y e e s __ __ __ 500 - 999 e m p lo y e e s __ _ __ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ____ 5 ,0 0 0 and o v e r —______________ 471 31 124 70 186 60 3 .4 2. 7 3. 0 3. 3 3. 7 3 .9 61 9 26 11 11 4 245 16 70 37 98 24 147 5 25 20 69 28 17 1 3 1 8 4 _ - 1 1 - _ - „ - “ - - - - P a id s ic k le a v e _ __ ________ __ U nder 100 e m p lo y e e s _ __ __ 100 - 499 e m p lo y e e s __ _____ 500 - 999 e m p lo y e e s ---------- 1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s __ _ 5 ,0 0 0 and o v e r __ _____ _____ 87 5 19 11 32 20 1. 7 0 ) .8 (M 2. 1 2. 5 56 4 18 8 19 7 23 1 3 9 10 7 1 3 3 _ - _ - _ - _ - _ - _ - _ _ - P r e m iu m p a y ------------------------------------U n der 100 e m p lo y e e s ___ __ 100 - 499 e m p lo y e e s _____ __ 500 - 999 e m p l o y e e s ________ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ----5 ,0 0 0 and o v e r __________ _____ _ 454 37 130 64 164 59 9. 1 7 .4 8 .4 8 .4 9 .7 10. 3 49 9 24 9 7 - 64 7 17 10 24 6 52 4 14 11 22 1 60 3 17 6 25 9 16 4 1 10 1 26 2 7 4 10 3 O v e rtim e p r e m iu m p a y _________ U nder 100 e m p l o y e e s ----------100 - 499 e m p lo y e e s ________ 500 - 999 e m p lo y e e s ______ __ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r 406 35 125 60 145 41 7. 2 7. 5 7. 5 6 .9 7 .2 6. 7 68 9 28 13 18 - 77 6 22 9 28 12 64 3 14 10 28 9 P r e m iu m pay f o r w o r k on h o lid a y s _ __ _ .. __ __ U nder 100 e m p lo y e e s _ _ 100 - 499 e m p l o y e e s ________ 500 - 999 e m p lo y e e s — __ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r _______________ _ 103 3 20 18 50 12 .5 ......~ V T .2 .5 .6 (l ) 94 1 20 17 45 11 8 2 1 4 1 Shift p r e m iu m p a y _ __ _ __ U nder 100 e m p lo y e e s _ 100 - 499 e m p l o y e e s ________ 500 - 999 e m p lo y e e s __ _ _ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r __ __ __ __ 361 7 92 49 159 54 2 .4 P T ~ 1 .4 2. 1 2. 7 3 .9 170 5 66 27 65 7 P e n s io n s ( t o t a l ) __ ____________________ U nder 100 e m p lo y e e s _ _____ 100 - 499 e m p l o y e e s ------------500 - 999 e m p lo y e e s __ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r _______________ 271 5 45 39 136 46 7. 0 (M 6. 8 7 .0 6. 7 7. 7 In s u ra n ce (tota l) __ __ ____ U n d er 100 e m p lo y e e s ____ 100 - 499 e m p l o y e e s ________ 500 - 999 e m p lo y e e s __ __ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r _ _ _ _ _ 482 29 132 76 188 57 3. 1 2 .8 3 .0 3. 1 3 .2 3.4 - 33 1 7 3 13 9 10 1 7 2 3 ■*1 1 1 _ - _ - - _ - - _ - _ - _ - - 1 1 “ - - 56 2 20 5 14 15 47 4 6 7 16 14 36 4 7 3 19 3 22 7 1 9 5 26 2 7 7 8 2 49 3 16 6 17 7 41 4 9 8 15 5 30 3 8 4 11 4 26 3 6 2 13 2 20 10 2 7 1 14 2 4 4 3 1 3 1 1 1 - 14 2 7 1 4 - 1 1 - _ _ _ - _ - _ - _ .. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - 138 1 24 17 67 29 27 1 2 2 12 10 21 _ _ 3 12 6 5 _ _ _ 3 2 _ _ _ _ _ _ - - 43 4 7 26 6 40 1 6 7 21 5 43 1 10 5 22 5 52 1 12 6 25 8 35 _ 5 5 18 7 24 _ 4 4 7 9 10 _ _ 1 7 2 131 12 47 22 40 10 202 12 38 30 93 29 108 2 38 18 38 12 34 2 7 6 14 5 5 1 1 2 _ - _ 3 “ _ 1 1 “ - - - . _ . _ _ _ _ _ _ _ _ _ _ _ _ - - - - - 8 1 2 2 2 1 2 _ 7 _ 1 1 3 2 7 1 1 1 3 1 _ 2 - _ _ _ _ _ _ _ _ _ _ _ „ _ _ „ _ _ «. _ _ _ “ “ “ " _ “ S ee fo o tn o te at en d o f t a b le . 13 1 2 6 4 54<8 54 TABLE 17.—Expenditures per payroll hour for reporting establishments only* by item and size of establishment, 1953 - Continued Item and s iz e o f e s ta b lis h m e n t N um ber A v e ra g e of e s t a b lis h per m e n ts p a y r o ll h ou r r e p o r tin g e x p e n d i (c e n ts ) tu r e s N u m b e r o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu re s o f— 14 10 6 12 8 and and and and and und er u n d er unde r u n d e r un d er 16 14 10 12 8 ce n ts c e n ts c e n ts ce n ts ce n ts 4 2 and U nder and u nd er under 2 6 4 c e n ts ce n ts ce n ts L e g a lly r e q u ir e d p a y m e n t s -----------U nder 100 e m p lo y e e s _ __ _ 100 - 499 e m p l o y e e s _______ 500 - 999 e m p lo y e e s — -------1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r _ ____ ______ 524 40 150 80 194 60 6 .5 7 .7 6. 7 7 .0 6. 1 5 .5 - 62 4 17 10 22 9 213 9 56 20 90 38 O ld A g e and S u r v iv o r s In s u r a n c e ---------------------- — ____ U nder 100 e m p lo y e e s _ __ _ 100 - 499 e m p lo y e e s — ____ 500 - 999 e m p l o y e e s -----------1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s — 5 ,0 0 0 an d o v e r _______________ 516 42 146 77 192 59 2 .5 2 .4 2 .4 2. 6 2 .6 2 .6 63 10 33 8 12 - 445 32 111 68 175 59 8 2 1 5 U n em p loy m en t c o m p e n s a t io n __ U n d er 100 e m p l o y e e s _______ 100 - 499 e m p lo y e e s — 500 - 999 e m p l o y e e s _______ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 ,0 0 0 and o v e r _ __ ___ _ 515 42 148 77 190 58 2. 3 2. 8 2 .4 2 .6 2. 1 1. 8 254 16 66 31 99 42 182 13 55 31 72 11 75 12 27 14 18 4 4 1 W o r k m e n 's c o m p e n s a t i o n ______ U nder 100 e m p l o y e e s ______ 100 - 499 e m p l o y e e s _______ 500 - 999 e m p l o y e e s _______ 1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s __ 5 ,0 0 0 and o v e r — _ _ _ _ _ _ 517 40 147 79 191 60 1 .6 2 .4 2 .0 1 .8 1. 3 1. 1 388 23 97 55 158 55 89 11 31 18 25 4 22 2 12 3 5 - 9 3 3 1 1 1 State t e m p o r a r y d is a b ilit y i n s u r a n c e __ _______ __ _ _ U nder 100 e m p lo y e e s . 100 - 499 e m p lo y e e s _ 500 - 999 e m p lo y e e s ----------1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s __ 5 ,0 0 0 and o v e r __ __ 38 7 11 4 12 4 .7 (M ( > ( ) < ) (M 35 7 9 4 11 4 2 1 1 " 1 1 ~ N u m ber of e s t a b lis h m e n ts r e p o r t in g e x p e n d i tu r e s 74 11 29 c> 21 41 126 <9 33 29 50 1 - 1 1 1 t> *35 2 1 20 ce n ts and over _ 3 1 2 - 1 1 - “ - - - _ - _ - _ - _ - _ - i 1 - _ - _ - _ - - - - - - _ - * - 28 3 8 6 8 3 10 2 3 3 1 1 7 1 2 3 1 - - _ 2 1 1 - _ - 16 18 and and u nd er under 18 20 ce n ts ce n ts “ - . - _ _ - “ " N um be:r o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f— A v era g e per p a y r o ll h ou r (ce n ts ) 10 U nder and 10 un d er c e n ts 15 ce n ts 15 and un d er 20 ce n ts 20 and un d er 25 ce n ts 25 and un d er 30 ce n ts 30 and un d er 35 c e n ts 35 40 and and un d er un d er 40 45 ce n ts ce n ts 45 and under 50 c e n ts 50 c e n ts ana A l l s e le c t e d i t e m s ___________ ____ U n der 100 e m p l o y e e s ______ 100 - 499 e m p lo y e e s — — 500 - 999 e m p lo y e e s 1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s 5 ,0 0 0 and o v e r __ _ 419 32 127 64 144 52 3 0 .8 22. 8 2 6 .9 3 0 .2 34. 1 3 6 .8 18 3 8 3 3 1 34 6 15 7 6 - 33 7 16 5 15 50 4 20 9 16 1 54 4 14 6 20 10 72 4 18 10 27 13 65 1 21 9 26 8 41 1 9 5 18 8 26 2 2 6 9 7 26 _ 4 4 14 4 A l l s e l e c t e d ite m s ex clu d in g p r e m iu m pay _ ___ U n der 100 e m p l o y e e s ______ 100 - 499 e m p l o y e e s ______ 500 - 999 e m p l o y e e s ---------1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s __ 5 ,0 0 0 and o v e r __ _ 478 36 139 76 173 54 2 2 .2 15. 8 1 9 .0 2 1 .9 2 4 .7 27. 1 51 11 22 8 53 8 24 9 10 2 90 7 30 16 29 8 116 5 37 17 47 10 89 4 11 15 43 16 38 9 26 5 8 1 2 2 _ _ 2 - 5 _ 1 1 2 i 9 1 4 4 18 7 9 8 4 1 1 Number o f establishm ents too sm all to justify com putation o f an average. * The averages in this table are not applicable to manufacturing as a whole. Establishm ents incu rring no expenditures fo r the p a rticu lar item s studied w ere excluded in the com putation o f these a v e ra g e s, as w ere establishm ents unable to provide expenditure data. 55 TABLE 18.—Expenditures as percent of payroll for reporting establishments only* by item and size of establishment, 1953 N u m ber of e stab lish m en ts Item and size V acatio n , of e stab lish m e n t h o lid ay s, Num ber of e stab lish m en ts reportin g expen d i tures A verage percent of p ay roll an d sic k U n d e r 1 0 0 e m p l o y e e s _____— - 4 9 9 e m p l o y e e s ---- -------5 0 0 - 9 9 9 e m p l o y e e s ___________ - 4 , 9 9 9 e m p l o y e e s ----5 , 0 0 0 a n d o v e r ___________________ 100 1,000 P a i d v a c a t i o n s ------------------------------U n d e r 1 0 0 e m p l o y e e s _ ______ - 4 9 9 e m p l o y e e s __ ______ 5 0 0 - 9 9 9 e m p l o y e e s __ ______ - 4 , 9 9 9 e m p l o y e e s ----5 , 0 0 0 a n d o v e r -------- — -------- 100 1,000 528 37 152 76 200 63 524 39 150 76 197 62 P a id h o lid ay s ______ — __ ______ U n d e r 1 0 0 e m p l o y e e s _ ______ - 4 9 9 e m p l o y e e s -------------5 0 0 - 9 9 9 e m p l o y e e s __________ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r ______ ____ ________ 471 31 124 70 186 P a i d s i c k l e a v e ------ — — -------U n d e r 1 0 0 e m p l o y e e s _ — __ 1 0 0 - 4 9 9 e m p l o y e e s __ __ __ 5 0 0 - 9 9 9 e m p l o y e e s __________ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r __ __ _T __ „ 87 5 19 100 1,000 1,000 60 11 32 20 4 .9 3. 6 4. 3 4. 8 5. 3 5. 8 3. 1 2 .4 2. 7 2 .9 3 .4 3. 5 1.8 1 .5 . 8 . 8 1 1 1 Under 1 p e r cent 8 3 4 1 - and under 2 p er cent 19 3 12 2 2 - P e n s i o n s ( t o t a l ) __________________________ U n d e r 1 0 0 e m p l o y e e s _________ - 4 9 9 e m p l o y e e s -------------5 0 0 - 9 9 9 e m p l o y e e s _____________ - 4 , 9 9 9 e m p l o y e e s _____ 5 , 0 0 0 a n d o v e r — __ — _ _ __ 271 5 45 39 136 46 In s u r a n c e (to tal) __ _ U n d e r 1 0 0 e m p l o y e e s ______ - 4 9 9 e m p l o y e e s -------------------500 - 999 em p lo yees _ — — - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r ___________________ 482 100 1,000 100 1,000 100 1,000 See footn ote at end o f table, 29 132 76 188 57 1.2 (M . 8 1 . 1 1. 3 1 .9 - 45 30 79 4 - - - - - - - - - 5 _ 1 _ _ _ _ _ _ - - - - - - - 1 - - - - - - " - - 61 67 5 37 30 3 27 20 1 26 14 20 50 3 7 17 5 28 5 18 20 9 19 9 5 15 4 73 3 16 13 31 55 44 30 3 15 9 9 14 12 7 8 6 32 6 16 5 5 8 17 - 1 19 17 44 11 147 4 57 24 54 8 41 3 7 25 1.6 - - 3. 5 1 - - (M 3. 8 3. 6 3. 3 3 .7 1 .7 1 .7 . 8 1. 7 1. 7 - - 1 1 2 12 60 7 18 92 (M - 2 6 1 37 5 3 12 - - _ (M 361 7 92 49 159 54 - - 103 3 S h i f t p r e m i u m p a y _ _ _ __ U n d e r 1 0 0 e m p l o y e e s ____________ - 499 e m p lo y e e s __ __ __ 5 0 0 - 9 9 9 e m p l o y e e s __ __ __ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r ______ ___ _ “ - _ 58 5 14 9 3 3 4 - 1 1 - - . 12 8 _ 57 7 25 . " - 3 .9 4. 7 4. 2 3. 7 3. 7 3. 2 18 50 3 - 3 2 3 3 _ 4 .9 1,000 14 22 - 2 - 14 . i 14 11 11 _ 59 20 11 79 6 10 1 1 _ 16 . 42 15 65 15 3 3 17 7 19 13 47 17 15 7 3 406 35 125 60 145 41 P r e m i u m p a y fo r w o r k on h o lid ay s ______________________________________ U n d e r 1 0 0 e m p l o y e e s ____________ 1 0 0 - 4 9 9 e m p l o y e e s ________ _ _ __ 5 0 0 - 9 9 9 e m p l o y e e s __ ____ - 4 , 9 9 9 e m p l o y e e s ______ 5 , 0 0 0 a n d o v e r __ __ __ __ __ 99 3 27 26 8 186 - 12 O v e r t i m e p r e m i u m p a y _______ ____ U n d e r 1 0 0 e m p l o y e e s _________ - 499 em p lo yees — 5 0 0 - 9 9 9 e m p l o y e e s __________ - 4, 999 e m p lo y e e s _____ 5 , 0 0 0 a n d o v e r _ _ — — __ ____ 1,000 124 3 42 10 10 p er cent 10 p er cent and over 233 18 61 32 94 28 1 - 4 100 125 31 6 9 and under 59 23 47 14 12 454 37 130 64 164 1,000 76 13 8 p er cent 8 and under 9 p e r cent 33 30 8 7 8 5 0 36 6 p e r cent and under 7 p er cent 3 4 51 3 18 4. 4. 4. 4. 5. 5 and under 199 7 37 28 99 28 __________ _ — __ __ __ __ __ __ __ y e e s ------------ __ ______ ___ pay e r 100 e m p l o y e e s - 499 em p lo yees - 999 em p lo y ees - 4 ,9 9 9 e m p l o 5 , 0 0 0 a n d o v e r __ __ P rem iu m Und 100 500 4 and under 5 p er cent 156 13 .9 1.0 1. 2 7 and under 3 and under 4 p er cent and under 3 p er cent of— 67 9 4 ( 1) 6 e xpen d itu res 8 1 .9 1 .9 .4 2 repo rtin g - 6 112 7 38 21 35 11 10 21 20 10 11 2 1 1 6 1 158 2 20 32 6 26 1 - 1 1 2 44 4 8 10 10 2 2 8 2 6 24 8 2 12 36 15 6 6 1 10 1 4 10 5 7 - - 10 1 3 3 6 2 2 - - - - - 22 2 10 2 8 13 8 2 5 1 14 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _ _ - - - - - - - - - " - - " - - 38 16 1 1 _ _ _ _ _ - 1 10 7 21 6 111 1 - _ - _ - - - - - - _ - _ _ - - 2 8 - 12 5 28 1 5 5 19 5 40 5 2 16 40 4 13 5 10 1 9 9 32 20 - - 35 29 96 30 12 6 7 - 54 41 3 4 10 3 - 45 10 2 7 4 13 4 11 2 - 6 - 36 206 30 9 5 - - 20 6 10 2 11 - - 5 1 11 - - 26 5 4 8 2 - 3 3 18 14 78 1 - - - - - - _ _ _ - - 1 - - - - 10 11 - - 6 1 2 1 2 1 1 - - 5 - - 23 - 2 6 8 7 2 1 6 1 7 1 _ _ 2 1 4 4 2 - 8 - 1 2 _ _ _ _ _ _ _ - 1 1 2 1 4 _ - - - - - - - 3 - - - - - - " 1 - - - - - 56 TABLE 18.—Expenditures as percent of payroll for reporting establishments only* by item and size of establishment, 1953 - Continued N u m ber o f e s ta b lis h m e n ts R ep ortin g e x p e n d itu r e s of— Item and siz e of e stab lish m e n t JNu m b e r of e stab lish m en ts rep o rtin g expen d i tu res A verage percent of p ay roll L e g a l l y r e q u i r e d p a y m e n t s -------- _ U n d e r 1 0 0 e m p l o y e e s _________ - 4 9 9 e m p l o y e e s __________ 5 0 0 - 9 9 9 e m p l o y e e s __________ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r __________________ 524 40 150 80 194 60 3. 6 4. 8 4. 1 O ld A g e an d S u r v i v o r s I n s u r a n c e ______ ____ ____ ________ ____ U n d e r 1 0 0 e m p l o y e e s _ ______ 1 0 0 - 4 9 9 e m p l o y e e s ______ __ 5 0 0 - 9 9 9 e m p l o y e e s __________ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r __ __ __________ 516 42 146 77 192 59 1 .4 1. 5 1. 5 1 .4 U n e m p l o y m e n t c o m p e n s a t i o n ___ U n d e r 1 0 0 e m p l o y e e s _________ - 4 9 9 e m p l o y e e s __________ 5 0 0 - 9 9 9 e m p l o y e e s ______ __ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r __ __ ______ __ 515 42 148 77 190 58 1. . 1. 1. . W o r k m e n ' s c o m p e n s a t i o n ________ U n d e r 1 0 0 e m p l o y e e s _________ 1 0 0 - 4 9 9 e m p l o y e e s __________ 5 0 0 - 9 9 9 e m p l o y e e s — ______ - 4 , 9 9 9 e m p l o y e e s ____ 5 , 0 0 0 a n d o v e r __ __ ______ __ 517 40 147 79 191 60 100 1,000 1,000 100 1,000 1,000 State te m p o ra ry d isab ility i n s u r a n c e ____________________________ U n d e r 1 0 0 e m p l o y e e s _ ______ - 4 9 9 e m p l o y e e s __________ 5 0 0 - 999 e m p l o y e e s __ __ __ - 4 , 9 9 9 e m p l o y e e s ____ 5 ,0 0 0 a n d o v e r ___________________ 3 .9 3 .2 2. 7 1,000 30 1 182 3 33 - 14 21 86 - 9 39 8 1 4 2 12 126 10 39 25 47 5 - " - - - - - - - - - - - - - _ _ _ - " 1 - - - - - - - - - - - - - - 8 1 1 _ 1 1 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - _ _ _ _ 8 1 13 6 7 1 3 4 _ 6 5 - 2 1 2 1 - - 1 1 - _ _ " - 1 - - 2 1 1 _ 35 7 9 4 11 4 - 1 _ .4 (M (M (M (M (M 1 3 - 4 - 14 3 - 4 5 3 _ 1 23 4 6 10 1 - 107 10 _ 19 4 10 1 363 44 19 28 5 10 - .9 1 .4 . 2 .9 . 7 . 5 81 53 155 54 p er cent - 49 24 60 1 10 12 1 9 p e r cent 8 - 9 35 18 25 3 11 18 p e r cent 10 p e r cent and over - - 20 10 9 and under - 35 12 6 51 and under - - 12 9 37 15 33 8 7 and under - 90 2 100 6 and under 7 p er cent _ - 157 1 3 4 3 6 1 - 3 5 4 and and under under 5 p er p e r cent cent - 232 13 50 29 98 42 3 8 5 5 2 .9 4 2 3 and under 4 p e r cent 59 1 12 p er cent 2 and and under under 3 p er p e r cent cent 3 1 11 4 1 495 38 138 73 187 1. 4 1. 3 38 7 100 1 Under _ - - _ - _ _ _ _ _ _ _ _ _ - “ - - _ _ _ - _ _ _ " - N u m b er o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f— inu m dc r of e s t a b lis h m en ts re p o r tin g e x p e n d i tu r e s A l l s e le c t e d ite m s __________________ U nder 1 0 0 e m p lo y e e s _______ 100 - 4 9 9 e m p lo y e e s ________ 5 0 0 - 9 9 9 e m p lo y e e s ________ 1.000 - 4 , 9 9 9 e m p l o y e e s ___ 5 .0 0 0 and o v e r _______________ A l l s e le c t e d ite m s ex clu d in g p r e m iu m pay U nder 100 e m p lo y e e s _______ 100 - 499 e m p l o y e e s ________ 500 - 999 e m p l o y e e s ________ 1 . 0 0 0 - 4 ,9 9 9 e m p l o y e e s ___ 5 .0 0 0 and o v e r _______________ 1 A v e ra g e percen t o f p a y r o ll 4 1 9 16. 5 32 14. 3 127 15. 7 U nder 6 per cen t 5 2 2 6 8 and u n d e r and under p er cent per cen t 8 10 1 10 10 19 4 2 6 6 3 3 4 12 and and under un d er 14 16 18 12 14 16 18 per cen t per cen t per cent per cen t 37 58 19 17 6 57 20 78 per cen t 65 3 5 7 5 14 9 13 87 78 33 13 28 15 4 7 8 1 1 .9 17 54 103 9 .7 4 10 82 36 4 23 28 29 19 13 13 4 29 35 37 .3 5 15 4 7 4 76 173 54 1 1 .9 12.6 1 3 .0 3 4 2 9 10 2 8 11 6 7 13 3 9 1 7 .6 11. 2 4 31 52 1 8 4 11 1 6 _ 4 1 8 1 1 3 2 1 cen t and over 4 28 7 3 14 30 p e r 16 14 - 139 70 25 1 6 .4 1 7 .4 - 30 per cen t 22 4 21 64 1 25 p er cent 2 16 10' 3 144 6 1 25 21 8 20 5 - 5 20 and and and and and u n d er u nd er und er under under 2 2 _2 _ _ 1 - 1 _ 1 _ 1 1 _ 1 N u m ber o f e s ta b lis h m e n ts t o o s m a ll to ju s tify com p u ta tio n o f an a v e r a g e . * The a v e r a g e s in th is ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e e x p e n d itu re data. 57 per hour, with the exception of Old A g e and Survivors Insurance p a y m e n t s 26 for w h i c h a slightly higher average w a s reported by the larger e stablishments • T h e s e data illustrate the importance of a proper sampling balance of establishments of different size in expenditure surveys. T h e significance of appropriate representation of the various e s t a b lishment sizes in a s a m p l e is u n d e r s c o r e d by the differentials a m o n g size classes for ,!all selected i t e m s 11 and !,all selected items e x cluding p r e m i u m p a y c ,f F o r these totals, and for such voluntary expenditure items as vacations, holidays, sick leave, shift p r e m i u m s , pensions, a n d insurance, it is, m o r e o v e r , important to e m p h a s i z e that if relative prevalence of practices w e r e taken into account (by computing average expenditures covering all establishments, including those with no expenditures) the differentials b e t w e e n small and lar^e establishments w o u l d be substantially wider than these data show. 7 Variations by Industry G r o u p .— T h e classification of m a n u facturing industries into three groups, conveniently if arbitrarily identified as lflow w a g e " (group i), " m e d i u m w a g e " (group II), and "high w a g e " (group III), permitted a cursory examination of broad industry differences bearing upon sampling p roblems. Admittedly, this w a s a substitute for m o r e precise data on specific industries w h i c h a larger s a m p l e and a better rate of response w o u l d have yielded. 2 (\ In 1953, e m p l o y e r s w e r e required to pay 1.5 percent of e m p l o y e e earnings up to $3,600 a year for Old A g e and Survivors Insurance. If a substantial n u m b e r of w o r k e r s earned m o r e than $3,600, an establishments annual contributions w o u l d a m o u n t to less than 1.5 percent of total payroll. W h y the ratio excee d e d 1.5 p e r cent in a n u m b e r of establishments w a s not ascertained in this study. S o m e of the possible reasons are: P a y m e n t of penalties for late filing; p a y m e n t of interest on unpaid tax; the reporting of p a y m e n t s for four quarters w h i c h did not correspond to the calendar year 1953, and r e porting errors. It is also possible that a small n u m b e r of establish m e n t s reporting expenditures in excess of 2 percent of payroll w e r e a s s u m i n g part or all of the w o r k e r s 1 liability; such payments, strictly speaking, should not be classified as legally required p ayments. 2 ' T h e underrepresentation in this response of establishments e m p loying fewer than 100 workers, as described in a previous section of this report, w o u l d have its m o s t profound effect on an average covering all establishments. A s far as the averages for reporting establishments only w e r e concerned, the effect can be illustrated simply: It wo u l d require a weighting of five applied to the average expenditure of 4 cents an hour for paid vacations s h o w n for the smallest size group to reduce the overall average of 5.8 cents by as m u c h as 0.5 cent. 28 See footnote 6, p. 17. 58 T he th e a v e ra g e trib u tio n s p e r a v e ra g e and y ea r W ith on a v e ra g e , a p p e a re d p a rt, 21) to n o th e P e rh a p s th at re q u ire d a m ou n t A g e fo r and co s t In th e th e a ll ite m s p r a c tic e s sp on se in sa m e th is th e lish m e n ts, te r m s (ta b le be o f th e re la tio n sh ip fo r ite m s h ig h e r p a id h e a lth a o f th e u n io n p a id p r o g r a m s , 29 h e ld for n o n u n io n as fo r r e th ere th e m o s t fo r in h ou r (ta b le for II th ree le s s in d u stry th e O ld p a y m en ts g ro u p s . lo w -w a g e v o lu n ta ry ta b le g rou p or o f 1, in c o m p e n s a som ew h a t in h ig h e r III. but p r e v a le n ce T h e le g a lly a and g rou p th e n e g o th ese s e p o o r e r r e had a n e g li a ll r e p o r tin g e s ta b lis h m e n ts of e s ta b lish m e n ts co v e rin g S tatu s. — 22) a ll in e s ta b as co m b in e d as to g rou p , p r e m iu m T h e is fo r pay, se le cte d a p p e a re d to by ra tio s B o th m e a s u re s p a id v a ca tio n s, in su ra n ce ite m s .* 1 sh ow ed in p a y r o ll e v id e n ce d d iffe re n ce s ite m s o f c e n ts -p e r -h o u r In su ra n ce . a co m p a ris o n p e rce n t le v e ls na ll oth er and c o v e re d , ra tio s s h ift T h e e sta b lish m e n ts, E a rn in g s S u rv iv o rs fo r in p a id re q u ire d n o n u n io n p ictu re . e x p e n d itu re s. e sta b lish m e n ts th e B a rg a in in g e s ta b lish m e n ts, th e I e x p e n d itu re s. e sta b lish m e n ts and g rou p a v e ra g e s and le a v e , g e n e ra liz a tio n s fo u n d W o r k m e n s th e u n io n and th e g rou p s in d ica te d w e ig h t no m ix e d sick p e n sio n H o w e v e r, w e re u n d e rre p re se n ta tio n w ith A g e to I b etw een if p e r ce n t-o f-p a y ro ll O ld in a cco u n t. e x p e n d itu re s fo r u n io n as in h o lid a y s, tr a r y and su ch g rou p , s u p p le m e n ta ry ,rL o w - w a g e n g re a te r C o lle ctiv e ra tio s th e lo w -w a g e d iffe re n tia l, te r m s . o f p a y ro ll in to g re a te r b y o f le g a lly e x p e n d itu re s c e n t s -p e r -p a y r o ll in tota l th e g rou p , th ose 2 3 ), p r e s e n t e d h ig h e r w e re be ta k en c a r r y a v e ra g e th e g ro u p s . th an d iffe re n ce s w o u ld H o w e v e r, V a ria tio n s b etw een th e in in clu d in g re la tio n in m e a s u r e s , and to g ro u p s a v e ra g e w o u ld e m p lo y e e g rou p co m p e n sa tio n lo w -w a g e on th e s u rv e y . g rou p th ree p e rce n t w e re d is p er e x ce p tio n s in d o lla r s -p e r -y e a r stu d ie d fr o m e ffe ct th is lo w e s t a ll lik e lih o o d , le cte d h ig h -w a g e 1 9 ), an d th e in d u stry -g ro u p ite m s s ig n ific a n t In su ra n ce h ig h e r-w a g e tia te d g ib le B y and h o u r (ta b le 2 0 ), ex p en d itu res sa m e th ese n otew orth y w e re p e r ce n ta g e w is e , a v e ra g e d and m o s t u n e m p lo y m e n t m o r e , on or S u rv iv o rs th e (ta b le g ro u p s. ra tio s c e n ts -p e r -h o u r tio n le s s co n siste n t p a y m e n ts. p a y ro ll e sta b lish m e n ts and th e e x p e n d itu re a d ju s te d e sta b lish m e n t re fle ct m e d iu m - la tte r p er p e rce n t o f p a y ro ll e x ce p tio n s , th e be b etw een o f exp en d ed th a n a la rg e ly ce rta in m u n e ra tio n as a v e ra g e s (ta b le s h ip s . th e e x p e n d itu re s ex p en d itu res T he b etw een n o and c o n u n io n d is ce r n ib le p a ttern . 29 d iffe re n c e A ctu a l in p e rce n t fig u re s, o f tak en p a y r o ll th an se p a ra te ly , w as show n in sh ow ed ta b le 23. a som ew h a t la rg e r 59 T A R IFF: 1 9.— A verage expenditures per adjusted payroll hour1 fo r reporting establishm ents only* by item and industry group, 2 1953 G rou p I A l l in d u str ie s N u m b er o f e s t a b lis h m e n ts rep o rtin g ex p e n d i tu res Ite m A verage p er a d ju ste d p a y r o ll hour (cen ts) N u m b er of e s t a b lis h m e n ts r ep o rtin g ex p e n d i tu res G rou p II A verage p er a d ju ste d p a y r o ll hour (c en ts) N u m b er of e s t a b lis h m e n ts r ep o rtin g ex p e n d i tu r e s G rou p III A v e r a g e N u m b e r of A v e r a g e p e r a d e s t a b lis h p e r a d m e n ts ju ste d ju ste d rep o rtin g p a y r o ll p a y r o ll hour h our ex p e n d i (c en ts) (cen ts) tu r e s V a c a tio n s , h o lid a y s , and sic k le a v e _________ P a id v a c a tio n s __________________________________ ___ P a id h o lid a y s __________________________ P a id s ic k l e a v e __________________________________ 52 8 524 471 87 9 .8 6. 1 3 .7 1 .9 169 169 138 23 7. 5 4. 7 3 .0 1 .2 163 165 153 32 10 . 1 6. 1 3 .8 2. 1 196 190 180 32 1 1 .5 7 .3 4. 0 2. 1 P r e m iu m p ay ______________________________________ P r e m iu m pay fo r o v e r t im e ___________________ P r e m iu m pay fo r w ork on h o l i d a y s _______ S hift p r e m iu m p a y ---------------------------------------------- 454 40 6 103 361 9 .5 7. 6 . 6 2. 6 149 137 33 88 6. 4 5. 8 .4 1 .5 142 119 35 120 10 . 8. . 2. 8 5 7 6 163 150 35 153 1 1 .3 8. 5 .6 3 .2 P e n s io n s ( t o t a l) ___________________________ ______ 271 7 .4 54 6. 6 98 7 .4 119 7. 8 In s u r a n c e , h e a lth , and w e lfa re (to tal) ______ 48 2 3 .3 148 2 .9 154 3 .7 180 3 .4 L e g a lly r e q u ir e d p ay m e n ts ---------------------------------O ld A g e and S u r v iv o r s In su ran ce ----------------U n e m p lo y m e n t c o m p e n s a t io n ----------------- ~ W o r k m e n 's c o m p e n s a t io n ___________________ State te m p o r a r y d is a b ility i n s u r a n c e _______ 52 4 51 6 515 517 38 6. 8 2. 6 2 .4 1 .7 . 8 175 171 170 172 13 6 .6 2 .4 2. 8 1. 5 ( 3) 160 157 158 158 15 6 .8 2 .7 2 .4 1 .7 7 .0 2 .9 2. 1 2 .0 ( 3) 189 188 187 187 10 A l l s e le c te d it e m s __________________________________ 419 32. 5 143 2 4 .0 126 3 5 .9 150 3 7 .8 A l l s e le c te d it e m s ex clu d in g p r e m iu m p a y _________________________ 478 2 3 .5 161 18. 5 143 2 5 .4 174 2 6 .6 ( 3) 1 A d ju ste d p a y r o ll h ou rs = total p a y r o ll h ou rs l e s s v a c a tio n , h o lid a y , and sic k le a v e h ou rs p aid fo r and taken. 2 F o r in d u str y g r o u p in g s, s e e footnote 6, p . 17. S ee table 1 fo r in d u str y id e n tific a tio n . 3 N u m b er of e s ta b lis h m e n ts too s m a ll to ju s tify com p u tatio n of an a v e r a g e . * T h e a v e r a g e s in this table a r e not a p p lic a b le to m an u factu rin g a s a w h o le. E s ta b lis h m e n t s in cu r rin g no ex p e n d itu res fo r the p a r tic u la r it e m s stud ied w e r e ex clu d ed in the com p u tatio n o f th ese a v e r a g e s , as w ere e s ta b lis h m e n ts unable to p r o vid e ex p en d itu re d ata. T A B L E 2 0 .- —A v e r a g e ex p e n d itu res a s p e r c e n t o f p a y r o ll fo r re p o r tin g e s ta b lis h m e n ts o n l y * b y it e m and in d u str y g r o u p ,1 1953 A l l in d u str ie s N u m b e r of e s t a b lis h m e n ts rep o rtin g e x p e n d i tu r e s Ite m G rou p III G rou p II G rou p I N u m b er of A v e r a g e e s t a b lis h percen t m e n ts of r ep o rtin g p a y r o ll e x p e n d i tu r e s A verage percen t of p a y r o ll N u m b er o f e s t a b lis h m e n ts re p o r tin g e x p e n d i tu res N u m b er o f A v e r a g e e s t a b lis h A v e r a g e percen t percen t m e n ts re p o r tin g of of e x p e n d i p a y r o ll p a y r o ll tu r e s V a c a tio n s , h o lid a y s , and s ic k le a v e ___________ P a id v a c a tio n s __ ----- ----------------------------------P a id h o lid a y s ----------- -------------------------------------P a id sic k l e a v e _________________________ ___ 52 8 52 4 47 1 87 4 .9 3. 1 1 .8 .9 169 169 138 23 4 .4 2 .8 1 .7 .6 163 165 153 32 5. 1 3 .0 1 .9 1 .0 196 190 180 32 5. 1 3 .3 1 .8 .9 P r e m i u m p ay ----------------- -------------------- __ -------P r e m iu m p ay f o r o v e r t im e _____ __ — _ P r e m i u m p ay fo r w o rk on h o l i d a y s _________ S h ift p r e m iu m p a y _____ _________ __ _____ 454 406 103 361 4. 8 3 .9 .3 1 .2 149 137 33 88 3 .9 3 .5 .2 '. 8 142 119 35 120 5. 5 4 .3 .3 1 .3 163 150 35 153 5. 1 3 .8 .3 1 .4 P e n s io n s ( t o t a l) -------- __ ~ 27 1 3 .5 54 3 .5 98 3 .6 119 3 .4 -------- ----- ----- -------------- 482 1 .7 148 1 .7 154 1 .9 180 1 .5 L e g a lly r e q u ir e d p a y m e n ts _____________________ O ld A g e and S u r v iv o r s In su r a n c e ___________ 52 4 51 6 3. 6 1 .4 175 171 4 .2 1 .5 160 157 3 .6 1 .4 189 188 3 .2 1 .3 U n em p lo y m en t c o m p e n s a t io n _________________ W o r k m a n 's c o m p e n sa tio n State t e m p o r a r y d is a b ility in su r a n ce 515 517 38 1 .3 .9 .4 170 172 13 1 .8 .9 (2 ) 158 158 15 1 .3 .9 (2 ) 187 187 10 1 .0 .9 41 9 1 6 .5 143 1 4 .6 126 1 8 .1 150 1 7 .0 478 1 1 .9 161 1 1 .0 143 1 2 .9 174 1 2 .0 In s u r a n c e , h e a lth , and w e lfa r e (total) A l l s e le c te d it e m s ..... ........ A ll s e le c te d it e m s ex clu d in g p r e m iu m pay _ ........................ 1 (2 ) F o r in d u str y g r o u p in g s, see footnote 6 , p . 17 . S ee table 1 for in d u stry id e n tific a tio n . N u m b er o f e s t a b lis h m e n ts too s m a ll to ju s tify com p u tatio n o f an a v e r a g e . * The a v e r a g e s in th is ta b le a r e not a p p lica b le to m an u factu rin g a s a w h o le . E s ta b lis h m e n t s in cu rrin g no e x p e n d itu res for the p a r tic u la r it e m s stud ied w e r e ex clu d ed in the c om p u tatio n o f th e se a v e r a g e s , a s w e r e e s t a b lis h m e n ts unable to p rovid e ex p e n d itu re d ata. 60 TABLE 2 1 .— Expenditures per year per em ployee fo r reporting establishm ents on ly * by item and industry g r o u p ,1 1953 N u m b er of e s t a b lis h m e n ts rep o rtin g ex p e n d i tu r e s A verage ex p e n d itu re p er e m p lo y e e p er year V a c a tio n s , h o lid a y s , and sic k l e a v e __________________________________ G rou p I _______________ ______ G rou p I I ___________________ __ G rou p III ______________________ 528 169 163 196 P a id v a c a tio n s __________________ G rou p I ________________________ G rou p I I ________________________ G rou p III _________________ __ P a id h o lid a y s ____________________ G rou p I -----------------------------------G rou p I I _____________________ _ G rou p III ______________________ N u m b e r of ie s ta b lis h m e n ts re p o r tin g e x p e n d itu res o f - Under $50 $50 and under 100 $192 146 20 0 226 28 20 4 4 52 36 13 3 82 33 25 24 109 37 38 34 131 30 45 56 79 7 23 49 33 4 10 19 5 1 1 3 6 1 3 2 1 _ 1 2 _ 1 1 52 4 169 165 190 120 91 120 145 48 34 8 6 142 64 48 30 197 56 68 73 102 11 34 57 28 3 6 19 4 1 3 3 _ 1 2 _ - _ _ _ _ _ - _ _ _ - - - - 471 138 153 180 72 58 75 79 94 50 25 19 322 81 107 134 52 6 20 26 2 1 1 1 1 _ - _ - _ - = . - - - l e a v e ______________ __ I ___________ ____ __ II ______________________ III __ __________________ 87 23 32 32 37 23 42 42 60 20 20 20 23 3 11 9 3 3 _ - “ " - - - - - P r e m i u m pay ___________________ G rou p I _______________ ______ G rou p I I _________________ __ G rou p III ______________________ 454 149 142 163 196 132 219 23 3 68 46 14 8 69 32 21 16 70 23 15 32 67 19 19 29 49 9 18 22 35 2 17 16 29 9 10 10 24 2 13 9 16 2 9 5 8 2 3 3 19 3 3 13 p r e m iu m p ay ______ I ----------------------------- ---II ______________________ III _____ ___________ _ 406 137 119 150 158 118 177 178 81 43 18 20 91 36 23 32 69 22 19 28 49 11 17 21 32 11 7 14 32 5 15 12 16 1 9 6 11 1 4 6 8 3 2 3 7 1 4 2 10 3 1 6 P r e m iu m p ay fo r h o lid a y w o r k ____________________ G rou p I ________________________ G rou p I I -----------------------------------G rou p III ______________________ 103 33 35 35 12 8 14 13 95 32 31 32 8 1 4 3 - - - - - - _ - _ - _ _ - - “ - - - - - S hift p r e m iu m p a y ______________ G rou p I ________________________ G rou p I I ___________ __________ G rou p III ______________________ 361 88 120 153 51 28 51 64 209 75 67 67 112 9 42 61 31 3 8 20 9 1 3 5 _ _ - _ _ - _ _ _ - _ _ - P e n s io n s (total) G rou p I _______________ ___ G rou p I I ________________________ G rou p III --------------- !----------------- 271 54 98 119 149 133 145 159 52 11 16 25 44 12 14 18 72 14 29 29 35 3 14 18 32 10 11 11 In su r a n c e (total) ____________________ G rou p I ________________________ G rou p II _ _____________________ G rou p III _____ _________ __ 482 148 154 180 65 56 72 67 183 76 49 58 21 5 50 72 93 68 18 27 23 15 4 6 5 1 1 . _ _ L e g a lly r e q u ir e d p a y m e n ts ______ G rou p I ________________________ G rou p I I ________________________ G rou p III --------------------------------- 52 4 175 160 189 135 129 136 139 1 1 - 142 58 30 54 226 68 83 75 104 34 33 37 O ld A g e and S u r v iv o r s In s u r a n c e ___________ __________ G rou p I ________________________ G rou p I I ________________________ G rou p III ______________________ 51 6 171 157 188 52 172 To6 42 24 341 65 114 162 3 _ 54 57 1 2 U n e m p lo y m e n t c o m p e n sa tio n __________________ G rou p I ________________________ G rou p I I ________________________ G rou p III ______________________ 515 170 158 187 47 53 47 43 322 87 98 137 168 74 56 38 W o r k m e n 1 s c o m p e n s a t io n ____ G rou p I ________________________ G rou p I I ________________________ G rou p III ______________________ 51 7 172 158 187 34 30 33 39 419 139 137 143 70 26 15 29 Ite m an d in d u stry grou p P a id s ic k G rou p G rou p G rou p O v e r tim e G rou p G rou p G rou p S ee fo o tn o te s at end o f table 46 $ 100 and under 150 $150 and under 20 0 1 - - $200 and under 250 1 1 $250 $350 $400 $450 $300 $500 and and and and and and under under under under u nd er over 40 0 300 45 0 350 500 _ - - - - _ _ _ _ _ - - - - - _ _ - - _ - _ _ - - - - - - - 11 2 7 2 7 _ 2 5 9 1 4 4 1 _ 1 4 _ - 4 4 1 _ 3 . . . . - - _ _ . _ _ - - “ - - - 29 8 10 11 9 2 1 6 10 3 2 5 1 1 _ 2 _ 1 1 _ _ _ . _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - “ - - 23 8 3 12 2 1 1 _ _ _ _ _ _ _ _ _ _ _ - - - - - - - - 18 4 3 11 5 1 2 2 4 2 _ 1 _ 1 _ _ _ _ _ _ _ _ 2 - - - - _ - _ _ _ _ _ - _ _ _ _ _ _ _ 61 TA BLE 2 1 .— Expenditures per year per em ployee fo r reporting establishm ents on ly * by item and industry g r o u p ,1 1953 - Continued Ite m and in d u str y grou p N u m b e r o f e s ta b lis h m e n ts r e p o r tin g ex p e n d itu r es o f— N u m b er of e s t a b lis h m e n ts r ep o rtin g ex p e n d i tu r e s A verage ex p e n d iture per e m p lo y e e p er ye ar 38 13 15 $15 36 1 1 ~ r n 11 1 1 $100 $ 1 5 0 $200 $ 2 5 0 $ 3 0 0 $ 3 5 0 $ 4 0 0 $ 4 5 0 $50 $500 and and and and and and and and and U n d er and $50 u nd er u nder under under u nd er under under under under over 100 200 300 150 350 40 0 450 500 250 L e g a lly r e q u ir e d p a y m e n ts: - C ontinued S tate te m p o r a r y d is a b ility in s u r a n c e ----------------------------G rou p I ___________________ G rou p I I ----------------------------G rou p III _________________ 10 N um ber of e s t a b lis h m e n ts re p o r tin g ex p e n d i tu res A ll s e le c te d it e m s G rou p. I _____ G rou p I I _____ G rou p III ___ A l l s e le c te d it e m s ex clu d in g p r e m iu m p ay . G rou p I __ G rou p I I __ G rou p III . 1 419 143 126 150 478 T5T 143 174 (*) ( 2) A verage ex p en d itu re per e m p lo y e e p er year $649 47 3 71 4 762 464 358 501 531 15 10 N u m b er o f e s ta b lis h m e n ts r e p o r tin g ex p e n d itu r es o f — U nder $ 100 $100 $200 $ 3 0 0 $ 4 0 0 $ 5 0 0 $ 6 0 0 $ 7 0 0 $ 800 $900 and and and and and and and and and under under under under u nder under under under under 500 600 700 800 900 1,000 200 300 40 0 46 21 1 42 2 3 3 1 27 14 10 28 27 23 24 19 7 16 100 92 17 36 39 29 26 45 14 16 62 15 16 31 61 7 22 32 59 6 19 34 43 7 19 17 $1,000 and over 30 4 14 44 7 15 12 22 _6 1 5 F o r in d u str y g r o u p in g s, s e e footnote 6 , p . 17. S ee table 1 fo r in d u str y id e n tific a tio n . N u m b er o f e s ta b lis h m e n ts too s m a ll to ju s tify com p utation of an a v e r a g e . * T h e a v e r a g e s in this table a r e n ot ap p lica b le to m a n u factu rin g as a w h o le . E s ta b lis h m e n t s in cu r rin g no ex p e n d itu r e s f o r the p a r tic u la r it e m s stu d ied w e r e ex clu d ed in the com p u tatio n o f th e se a v e r a g e s , as w ere e s ta b lis h m e n ts unable to p r o vid e ex p en d itu re d a ta . 62 TABLE 2 2 .— Expenditures per p ayroll hour fo r reporting establishm ents only* by item and union status, 1953 Ite m and union statu s 1 N u m b er of A verage p er e s t a b lis h m e n ts p a y r o ll rep ortin g hour (c en ts) e x p e n d itu res V a c a tio n s , h o lid a y s , and s ic k l e a v e ________________________________ __ Union e s t a b l i s h m e n t s -------------N onunion e s t a b lis h m e n t s _____ 52 8 40 4 120 P a id v a c a tio n s _________________ __ Union e s t a b l i s h m e n t s _________ Nonunion e s t a b lis h m e n t s _____ 524 400 120 P a id h olid ays ___________________ __ U nion e s t a b l i s h m e n t s _______ Nonunion e s t a b lis h m e n t s _____ N u m b e r o f e s ta b lis h m e n ts re p o r tin g ex p e n d itu res of— 2 4 6 10 12 14 8 16 18 20 and and and and and and and and and U nder c en ts 2 under under under under under u nd er u nder under under and 6 8 10 12 14 16 18 20 4 c en ts over cen ts c en ts cen ts c en ts cen ts c en ts c en ts cen ts c en ts 22 5 17 35 11 23 49 34 14 78 53 24 122 101 20 103 90 13 60 58 2 33 28 5 13 11 2 10 10 - 3 3 - 5. 8 6 .3 4. 1 34 10 23 98 57 40 158 125 32 140 120 19 63 60 3 22 19 3 7 7 - 2 2 - _ - _ _ _ - - - - 471 37 8 90 3 .4 3 .6 2 .6 61 31 28 24 5 197 47 147 132 15 17 17 - _ - 1 1 - - _ - _ - - - - - _ - P a id s ic k l e a v e ____ ____ _______ __ Union e s t a b l i s h m e n t s _________ Nonunion e s t a b lis h m e n t s _____ 87 63 24 1 .7 1 .9 1 .2 56 37 19 23 19 4 ? () _ - _ - _ - _ - _ - _ - - 1 - - 1 1 - - - - - - P r e m iu m pay __________ __________ Union e s t a b lis h m e n t s --------------N onunion e s t a b lis h m e n t s _____ 45 4 34 4 106 9. 1 9 .3 8 .2 49 30 19 64 46 17 52 37 15 60 49 9 56 43 13 47 39 7 36 32 4 22 18 4 26 17 9 16 13 3 26 20 6 O v e r tim e p r e m iu m p a y ___________ Union e s t a b lis h m e n ts _________ Nonunion e s t a b lis h m e n t s _____ 40 6 300 104 7 .2 7 .2 7 .2 68 48 20 77 52 25 64 50 14 49 41 7 41 33 8 30 22 7 26 18 8 20 16 4 14 8 6 3 1 2 14 11 3 P r e m iu m pay fo r h o lid ay w ork — Union e s t a b l i s h m e n t s _________ N onunion e s t a b lis h m e n t s _____ 103 88 15 . 5 . 5 . 5 94 80 14 8 8 - 1 . _ . _ _ _ _ _ _ _ _ _ _ _ _ _ 1 - - - - - - - - Shift p r e m iu m p a y _________ ___ Union p stahli sh m sn ts Nonunion e s t a b lis h m e n t s _____ 361 300 58 2 .4 2 .6 1 .6 170 127 40 138 124 14 27 25 2 21 19 2 5 5 _ _ _ _ _ - - - - - - P e n s io n s ( t o t a l) _____________________ Union e s t a b l i s h m e n t s _______ N onunion e s t a b lis h m e n t s _____ 271 21 5 55 7 .0 6 .4 9 .2 43 36 7 40 31 9 43 33 c) 52 47 5 35 32 3 24 18 6 10 6 4 8 3 5 2 1 1 7 5 2 7 3 4 In su ra n c e (total) ___________________ „ Union fist.ahlishmp.nts ... Nonunion e s t a b lis h m e n t s _____ 482 379 98 3 .1 3 .3 2 .5 131 87 41 202 1 62 40 108 94 12 34 31 3 5 4 1 2 1 1 _ _ _ _ _ - - - - - L e g a lly req u ir e d p aym e n ts _________ Union e s t a b li s h m e n t s _________ Nonunion e s t a b lis h m e n t s _____ 524 39 8 121 6. 5 6 .6 6 .0 _ _ - 62 40 22 213 160 53 126 101 24 74 58 14 28 22 4 10 7 3 7 7 - 3 2 1 1 1 - _ _ - O ld A g e and S u r v iv o r s In s u r a n c e __________________________ Union e s t a b li s h m e n t s _________ Nonunion e s t a b lis h m e n t s _____ 516 392 119 2 .5 2 .6 2 .2 63 25 38 44 5 35 9 81 8 8 _ _ _ _ _ _ _ . _ _ _ _ - - - - - - - - U n em p lo y m en t c o m p e n s a t io n ___ Union e s ta b lis h m e n ts __ __ N onunion e s t a b lis h m e n t s _____ 515 390 120 2 .3 2 .3 2 .3 25 4 20 0 54 182 130 51 75 57 14 4 3 1 _ _ - _ _ - _ _ - _ _ - _ _ - _ _ - _ _ - W o r k m e n 's c o m p e n s a t io n _______ Union e sta b li sh m pn ts Nonunion e s t a b lis h m e n t s _____ 517 38 9 123 1 .6 1 .7 1 .5 38 8 292 95 89 72 15 22 12 8 9 6 3 6 5 1 2 1 1 1 1 _ _ _ _ - - - - State t e m p o r a r y d is a b ility in s u r a n c e __________________________ Union e s ta b lis h m e n ts Nonunion e s t a b lis h m e n t s _____ 38 26 11 . 7 . 8 2 2 1 1 _ _ _ _ _ _ _ _ - - - - - - - N u m b er of e s t a b lis h m e n ts rep o rtin g ex p e n d i 9 .2 1 0 .1 6 .4 ( 2) A verage per p a y r o ll hour (c e n ts) 35 23 11 . N u m b er o f e s ta b lis h m e n ts re p o r tin g ex p e n d itu res of— U nder 10 c en ts tu r e s A ll s e le c te d i t e m s _________________ U nion e s ta b lis h m e n ts N onunion e s t a b lis h m e n t s _____ A l l s e le c te d it e m s exclu d ing p r e m iu m pay _________________ ___ Union e s ta b lis h m e n ts Nonunion e s t a b lis h m e n t s _____ 1 31 6 3 0 .8 3 2 .5 99 25. 6 478 367 107 2 2 .2 419 23.3 18 .5 18 4 14 10 and under 15 cen ts 34 19 15 51 20 53 32 31 20 15 and under 20 cen ts 33 20 and under 25 c en ts 25 and under 30 cen ts 40 and under 35 c en ts and under 40 c en ts and under 50 c en ts 50 c en ts and over 50 36 11 54 45 9 72 65 67 26 19 14 62 10 54 59 18 10 8 8 90 116 74 14 100 89 74 15 38 16 26 1Q 10 9 5 3 2 7 1 2 15 Union sta tu s not a v a ila b le fo r 4 e s t a b lis h m e n ts . N u m b er o f e s ta b lis h m e n ts too s m a ll to ju s tify com p u tatio n o f an a v e r a g e . * T h e a v e r a g e s in this tab le a r e not a p p lica b le to m an u factu rin g as a w h o le. E s ta b lis h m e n t s in c u r rin g no e x p e n d itu res f o r the p a r tic u la r it e m s stu d ied w e r e ex clu d ed in the com p utation o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o vid e ex pen d itu re d a ta . 63 TABLE 2 3 .— Expenditures as p ercent of p ayroll for reporting establishm ents o n ly * by item and union status, 1953 N u m b er of e s t a b lis h - N u m b e r of e s ta b lis h m e n ts re p o r tin g e x p e n d itu res of— A verage p ercen t Ite m and union statu s 12 r ep o rtin g ex p e n d i tu r e s p a y r o ll 7 6 •5 8 1 3 4 9 2 and and and and and and and and Under and 1 under under under under u nd er u nd er under u nder under 10 6 7 8 5 3 4 2 9 oerp er p er p er p er p er p er p er p er p er cent cent cent cen t cent cen t cent cent cent cent 10 p er cent and over V a c a tio n s , h o lid a y s , and sic k 1 VP Union e s t a b lis h m e n ts _________ Nonunion e s t a b l i s h m e n t s _____ 52 8 404 120 4 .9 5 .2 3. 9 8 2 6 19 4 15 36 17 17 76 53 23 125 96 28 124 108 15 99 88 11 27 24 3 11 9 2 3 3 - P aid v a c a tio n s --------------------------------Union e s t a b lis h m e n ts -------------Nonunion e s t a b l i s h m e n t s -------- 52 4 40 0 120 3. 1 3. 2 2. 5 8 2 6 67 29 37 156 121 33 199 165 34 79 72 6 14 11 3 1 1 _ - _ - _ - - - - _ - P a id h o lid a y s ________________________ U nion e s ta b lis h m e n ts _________ Nonunion e s t a b li s h m e n t s _____ 471 37 8 90 1. 8 1 .9 1. 5 37 18 18 233 182 49 186 164 22 15 14 1 _ - _ - _ - _ - _ - _ - _ - - - - - - - - P a id s ic k le a v e - — _____ ______ U nion e s t a b lis h m e n ts _________ N onunion e s t a b l i s h m e n t s _____ 87 63 24 .9 .9 .6 51 34 17 30 25 5 5 3 2 _ - 1 1 - _ - _ - _ - _ - _ - _ - P r e m iu m p a y ____________________________ 454 34 4 106 4. 8 4. 8 5. 0 32 20 12 60 48 11 44 31 13 61 48 13 67 51 14 50 42 8 37 29 7 30 23 7 27 23 4 20 14 6 26 15 11 406 300 104 3 .9 3. 7 4. 6 57 42 15 58 46 12 73 55 55 42 13 44 35 8 30 24 5 30 20 10 22 15 7 13 8 5 10 6 4 14 7 7 Nonunion e s t a b l i s h m e n t s _____ 103 88 15 . 3 . 3 . 2 92 78 14 11 10 1 Nonunion e s t a b l i s h m e n t s -------- 361 30 0 58 1 .2 1. 3 .9 147 112 33 P e n sio n s (to tal) _ __ ________ _______ Union e sta h li sbmont.s Nonunion e s t a b l i s h m e n t s _____ 271 215 55 3. 5 3. 1 5. 1 In su ra n c e ( t o t a l ) ________________________ Union e s t a b lis h m e n ts _________ N onunion e s t a b l i s h m e n t s _____ 482 379 98 L e g a lly r e q u ir e d p a y m e n ts __ ______ Union e s t a b lis h m e n ts _________ N onunion e s ta b lis h m e n ts Nonunion e s t a b l i s h m e n t s _____ O v e r tim e p r e m iu m p a y __ ______ N onunion e s t a b l i s h m e n t s _____ 18 _ ' - _ _ _ _ _ _ _ _ - - - - - - - - - 158 136 21 38 35 3 16 15 1 1 1 1 1 - - - - - 41 34 7 36 31 5 45 36 8 54 46 8 35 31 4 23 18 5 10 8 2 11 5 6 6 3 3 2 8 3 5 1. 7 1. 7 1. 6 112 82 27 20 6 160 46 111 94 16 40 34 5 5 4 1 7 5 2 1 _ 1 _ _ _ _ _ _ _ - - - - 52 4 39 8 121 3. 6 3. 5 4. 0 _ _ 30 24 6 182 152 30 126 98 27 100 68 32 51 34 15 19 13 5 10 7 2 4 2 2 2 _ 2 _ _ O ld A g e and S u r v iv o r s In su ra n c e _ __ __ _____ ______ U nion e s t a b lis h m e n ts _________ Nonunion e s t a b l i s h m e n t s _____ 516 39 2 119 1 .4 1 .4 1 .4 8 5 3 49 5 379 111 12 7 5 1 1 - _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - U n em p lo y m en t c o m p e n s a t i o n ___ U nion e s t a b lis h m e n ts _ __ __ N onunion e s t a b l i s h m e n t s _____ 515 390 120 1. 3 1. 3 1 .6 23 2 193 39 157 119 37 90 54 32 35 24 11 1 1 _ - _ _ - _ _ - _ _ - _ _ - _ _ - - W o r k m e n 's c o m p e n s a t io n ________ U nion e s t a b lis h m e n ts _________ Nonunion e s t a b l i s h m e n t s _____ 51 7 389 123 .9 .9 1. 0 363 27 2 90 107 89 16 23 17 5 14 6 7 8 4 4 1 1 - 1 _ 1 _ _ _ _ - _ _ - _ _ - 38 26 11 .4 i4 (* ) 35 23 11 2 2 1 1 - _ P r e m iu m pay fo r h o lid a y w o r k __ State te m p o r a r y d isa b ility in su r a n ce ___________________________ Union e s t a b lis h m e n ts _________ N o n u n io n e s ta b lis h m e n t s N u m b er ox e s t a b lis h m e n ts re p o r tin g ex p e n d i tu re s A l l s e le c te d it e m s __________ __ ___ Union e s t a b li s h m e n t s _______ N onunion e s t a b l i s h m e n t s ____ A l l s e le c te d it e m s e x clu d in g p r e m iu m pay U nion e s t a b li s h m e n t s _________ N onunion e s t a b l i s h m e n t s ____ _ Under 6 p er cent - _ _ _ _ - _ _ _ - - - _ 20 16 8 10 12 14 6 and and and and and and and and under under under under under under under under 25 14 18 20 12 16 8 10 p er p er p er p er per per per per cen t cent cent cen t cent cent cent cent 5 1 6 .5 10 — 5— TFTS--------- ------- T~ 3 7 1 5 .8 47 8 1 1 .9 1 2 .1 1 1 .4 107 _. N u m b er o f eis t a b lish m e n ts r e p o r tin g e x p e n d itu res o f — A verage p erc en t of p a y r o ll 41 9 316 99 ~ w t ---------- _ - 2 17 ------- T~ 8 54 ~JB— 26 19 11 8 82 “39 22 25 and u nder 30 p er cent 30 p er cen t and over 15 58 45 11 57 46 10 78 66 12 65 56 9 70 56 13 16 7 9 4 2 2 103 90 12 87 75 11 78 64 13 33 21 6 13 9 4 8 6 2 2 2 1 1 37 -J T ~ C o lle c t iv e b a r g a in in g status not a v a ila b le fo r 4 e s t a b lis h m e n t s . N u m ber o f e s ta b lis h m e n t s t o o s m a ll to ju s tify c o m p u ta tio n o f an a v e r a g e . * The a v e r a g e s in th is ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the com p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e e x p e n d itu re data. 1 2 64 T he ra tio s fo r a b se n ce o f in d iv id u a l b a rg a in in g a g re e m e n ts fa c to rs as siz e sta tu s. It o f sa m e ty p es n o tice a b le a m on g th e c o lle c tiv e o f s a m p lin g and su rv e y s b a rg a in in g p r o b le m s as o f e x p e n d itu re u n der in te rre la tio n s h ip in d u stry , th at e x p e n d itu r e u n d er co n ce n tra tio n e sta b lish m e n ts e m p h a s iz e s e s ta b lis h m e n t, in d ica te s e sta b lish m e n ts an y ite m s c o lle c tiv e lim ite d to su ch b a rg a in in g m a n u fa ctu rin g a g re e m e n ts su rv e y s co lle c tiv e a m on g w o u ld fa ce th e co v e rin g a ll m a n u fa c tu r in g E a rn in g s L e v e ls . — O ne e s ta b lis h m e n ts . V a ria tio n s th e ch ie f ite m s s tu d ie d p e n d itu re s tio n s, and is on e o r p o in te d w a s T y p e so m e m o r e in o f th e w a s not m e n t s 2 .4 as b y fo r ce n ts ). a v e ra g e O n ly in and p e n d itu re s a ll p e r fo r 6 e a rn in g s p a y in g w a s p a id e x on is a m on g is o la te d . p r a c tic e s th e o b v io u sly th e e s ta b lis h p ro v id in g 4 p a id a m o u n tin g a p p ro x im a te ly 6 w a s p a id 3 .6 ce n ts . th e e s ta b lis h m e n ts and and to tw ic e h o lid a y s, fo r $ 1 .4 0 th at v a ria tio n . w e re and h o lid a y s $ 2 .2 0 ta b u la v a ria tio n h ou r cen ts b e tw e e n b etw een th e th e se o f p a y ro ll 3 .2 ca u sin g h o lid a y s p ro v id in g fr o m 5 o f $ 2 .2 0 m en ts in lish m e n ts in W ith a cco u n te d tion b y fo r th is lis te d b e $ 1 .6 0 $ 2 .4 0 to an 3 .8 h ou r on g ro u p th e re p o rte d in o f th is p a id v a ca tio n s o f th e cen ts o f 4 $2 ra te 4 .6 cen ts ’ ’u n e x p l a i n e d ” p o s s ib ility o n ly o f th e e s ta b lis h th a n th is th at w o rk e d ra te at th e le s s fo r w ith o f th e o f e r r o r s 52 e s ta b fig u r e s . (ta b le ta b u la tio n le n g th o f th e s in ce e s tim a te d h o lid a y a v e ra g e se ctio n ; h ou r A ssu m in g at 5 .1 a cco u n tin g e x an e m p lo y e e th re e -fifth s e x p e n d itu re s cen t e sta b lish m e n ts e a ch a g a in st re a d ily , p ro v id e d to le a st p o s s ib ly e a r lie r p a id th e at th a t ra tio s h o lid a y s e x a m p le , 1 $ 2 .2 0 . ex p e n d itu re s as p a id th an o f to o f F o r le s s $2 and h o lid a y cen ts ex p e n d itu re le v e l. g ro u p o f h o lid a y s o f n u m b er fr o m in th e le v e ls 4 .6 d is p o se d th e e a rn in g s h ou r y e a r, fa c to rs r e s p e c t in an p a id to ca te g o ry ca n d is p e rs io n by ra n g e d H o w e v e r, o f th e co m p u tin g 6 th e h o u r. w e re th e e a rn in g a m ou n t th is e s tim a tio n cen ts r e c e iv e d S om e d is p e rs io n 6 d u rin g an o f •’ e x p l a i n e d ” h o lid a y s h o u rly w ou ld h o u r. p a id and h ou rs h ou r p a rt w a s e s ta b lis h m e n t^ 6 a v e ra g e an in th e e m p lo y e e s 2 ,0 8 0 s m a ll 24 fo r b etw een g r o s s a ta b le p r o v id e d an a v e ra g e h o u rly a ll p r o v id e d a v e ra g e e sta b lish m e n ts e s ta b lis h m e n ts p a id th e ite m E s ta b lis h m e n ts th e in c r e a s e d th e in fo rm a tio n fo r fo r In sa m e e x p la in h o lid a y s 2 4 ). fo r th e o f to e x p e n d itu re s T he o f fo r 2 8 . o f fig u r e s a v e ra g e . show n to o f p a id h o lid a y s, e x p e n d itu re g r o s s cen ts p a id g ro u p a cco u n tin g a m ou n t (ta b le p r a c tic e s th rou gh ra tio s e x p e n d itu re s a v e ra g e 8 (4 .9 th e a v e ra g e th e fo r th e ex p en d itu re th e 24 s u fficie n t le v e l re p o rte d la rg e W ith in fa c to r s n u m b er e a rn in g s ce n ts; w ith th e on ta b le s e x p en d itu re E s ta b lish m e n t in flu e n ce d h o lid a y s in and sep a ra te in fo rm a tio n out p r e v io u s ly , re q u e ste d o f P r a c tic e o f o b ta in in g illu stra te d e sta b lish m e n ts A s b y a d va n ta ges th e w a s 2 5 ), tak en v a ca tio n a v a ria b le in to n ot c o n s id e r a p e r io d fo r e a ch 65 T A B L E 2 4 . — E x p e n d itu re s p e r p a y r o ll h our f o r p aid h o lid a y s f o r r e p o r t in g e s ta b lis h m e n ts o n l y * b y e s ta b lis h m e n t e a rn in g s le v e l and n u m b e r o f h o lid a y s p r o v id e d , 1953 G ross average hourly earnings and number of paid holidays 1 Number of estab lishm ents reporting expendi tures Number of establishm ents reporting expenditures of— A verage per pa yroll hour (cen ts) 3 and under 4 cents 5 6 and and under under 7 6 cents cents 4 and under 5 cents Under 1 cent 1 and under 2 cents 2 and under 3 cents 23 38 91 154 117 30 7 1 11 13 20 14 15 10 2 6 23 31 52 27 10 4 3 5 16 35 24 16 14 2 7 10 5 3 3 3 2 2 28 15 42 8 11 4 4 6 4 - 7 14 118 19 24 37 22 8 11 2 1 80 4 6 23 19 15 26 9 14 - 2 - - - - - 3 5 5 8 3 7 2 A ll establishm ents -------------------------------------------- 471 3.4 Establishm ents with g ross average hourly earnings of: $ 1 .2 0 and under $ 1 . 4 0 -------------------------------$ 1.40 and under $ 1 . 6 0 -------------------------------$ 1 .6 0 and under $ 1 .8 0 -------------------------------$ 1.80 and under $ 2 . 0 0 -------------------------------$2. 00 and under $ 2 . 2 0 -------------------------------$ 2 .2 0 and under $ 2 .4 0 -------------------------------$ 2 .4 0 and under $ 2 .6 0 -------------------------------- 34 53 74 118 85 48 26 2 .2 2 .9 3. 3 3. 6 3. 7 3. 8 4 .2 3 2 2 1 7 11 5 4 4 2 - E stablishm ents providing: 4 paid holidays -------------------------------------------5 paid holidays ---------------------------------------------6 paid holidays ---------------------------------------------$ 1.40 and under $ 1 . 6 0 --------------------------$ 1.60 and under $ 1.80 --------------------------$ 1.80 and under $ 2 . 0 0 --------------------------$ 2 .0 0 and under $ 2 .2 0 --------------------------$ 2 .2 0 and under $ 2 . 4 0 --------------------------7 paid holidays --------------------------------------------8 paid holidays ---------------------------------------------- 49 34 271 33 42 65 52 37 52 31 2 .4 2. 7 3.6 3.2 3.3 3. 7 3. 6 3. 8 4. 1 4.9 2 2 3 2 1 1 2 11 3 12 2 1 1 2 2 2 1 - 7 cents and over 4 14 - - - - - - - 1 1 S e le c t e d in te r v a ls and p r o v i s io n s . * The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e se a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e e x p en d itu re d ata. T A B L E 2 5 . — E x p e n d itu re s p e r p a y r o ll h ou r f o r pa id v a c a tio n s f o r r e p o r t in g e s ta b lis h m e n ts o n l y * b y e s ta b lis h m e n t e a rn in gs le v e l and a v e r a g e length o f v a c a tio n , 1953 G r o s s a v e r a g e h o u r ly e a rn in g s and a v e r a g e len gth o f v a c a t i o n 1 A ll e s t a b l is h m e n t s ---------------------------E s ta b lis h m e n ts w ith g r o s s a v e r a g e ea rn in g s of: $ 1 .0 0 and u n d er $ 1 . 2 0 -------------$ 1 . 2 0 and u n d er $ 1 . 4 0 -------------$ 1 .4 0 and u n d er $ 1 . 6 0 -------------$ 1 .6 0 and tinder $ 1 . 8 0 -------------$ 1 .8 0 and u n d er $ 2 . 0 0 -------------$ 2 . 00 and u n d er $ 2 . 2 0 -------------$ 2 . 20 and u n d er $ 2 . 4 0 -------------$ 2 .4 0 and u n d er $ 2 . 6 0 -------------E s ta b lis h m e n ts p r o v id in g a v e r a g e v a c a tio n s o f: L e s s than 1 w e e k -----------------------1 and u n d er 1 .5 w e e k s ---------- ----1 . 5 and u n d er 2 w e e k s --------------$ 1 .4 0 and u n d e r $ 1 . 6 0 --------$ 1 .6 0 and u n d er $ 1 . 8 0 --------$ 1 .8 0 and u n d e r $ 2 . 0 0 --------$ 2 . 00 and tinder $ 2 . 2 0 --------$ 2 . 2 0 and u n d er $ 2 . 4 0 --------2 and under 2 . 5 w e e k s — N u m ber of estab lis h m e n ts r e p o r t in g e x p e n d i tu r e s N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu re s o f— A v era g e per p a y r o ll hou r (ce n ts ) U nder 524 5 .8 8 26 36 29 46 56 81 2. 1 3 .4 4. 5 5. 1 6. 0 2 - 11 6 10 10 1 1 3 3 - 1 6.8 1 1 - 120 90 50 26 1 ce n t 7. 5 8 .9 - 52 138 191 27 31 51 36 2.2 3 4. 3 6. 1 5 .0 5. 7 6 .3 1 20 114 7 .5 8. 1 6.8 - 3 4 1 2 and and and and tinder u nd er u n d er u n d er 2 3 4 5 cen ts cen ts ce n ts ce n ts 23 3 ” 62 6 62 - 5 7 6 and and and tinder u nd er u n d e r 8 7 6 cen ts ce n ts ce n ts 96 - 84 - 40 23 31 - - 4 - 15 11 2 1 1 18 9 13 18 23 34 6 11 9 18 14 - 5 - - 4 - 4 17 28 24 5 4 18 17 1 - 2 6 1 1 39 15 2 3 32 23 10 29 55 13 1 4 16 16 1 _ 2 2 5 5 3 7 1 - 13 45 2 8 17 14 3 22 10 c e n ts -and over 56 12 10 11 6 2 8 2 1 8 9 and and tinder tinder 10 9 c e n ts ce n ts 11 3 1 31 3 10 9 8 22 1 8 15 9 5 1 12 3 3 3 21 6 1 6 9 3 4 9 7 3 2 2 - 14 21 2 1 S e le c t e d in te r v a ls and p r o v i s io n s . * T h e a v e r a g e s in this ta b le a r e n o t a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts u na ble to p r o v id e e x p en d itu re data. 6 6 establishment, 30 A s expected, average expenditures for paid vacations, in cents-per-payroll hour, increased consistently with establishment earnings levels and with the size of the average vacation period. A m o n g establishments providing an average of b e t w e e n 1V 2 and 2 w e e k s of vacations, with gross average hourly earnings b e t w e e n $2 and $2.20, expenditures per hour ranged f r o m less than 4 cents to m o r e than 9 cents. A s s u m i n g 60 and 80 hours to be the equivalent of 1 llz a n d 2 weeks, and that each e m p l o y e e w o r k e d 2,080 hours during the year, the ’Explained11 variation ranged b e t w e e n 5. 8 cents (60 hours at $2 an hour) an d 8.5 cents (80 hours at $ 2 . 2 0 an hour).31 Thus, the ,!unexplained'1 variation in this case w a s relatively small. Only 6 of the 36 establishments provided estimated figures; one a m o u n t e d to m o r e than 9 cents an hour, one to b e t w e e n 5 a nd 6 cents. T h e influence of the a m o u n t of shift w o r k on shift p r e m i u m expenditures is d e m o n s t r a t e d in table 26. T h e dispersion of estab lishment expenditures within the categories d e t e r m i n e d by the ratio of shift p r e m i u m hours to total payroll hours signifies the operation of factors other than the a m o u n t of shift work. Included a m o n g these factors, of course, are the size of the shift differential a n d the p r e v a lence of third-shift w o r k w h i c h typically carries a higher p r e m i u m rate than w o r k on the second shift. A distribution of expenditures on paid sick leave by the type of plan in effect (table 27) revealed that expenditures on informal or discretionary leave plans w e r e substantially lower, on the average, than expenditures connected with formal plans. This undoubtedly w a s due largely to differences b e t w e e n discretionary and formal plans in the proportions of e m p l o y e e s sharing this benefit. Little could be done with the a m o u n t of information requested in isolating s o m e of the factors accountable for variations in pension expenditures. H o w e v e r , a separation b e t w e e n contributory and n o n contributory plans disclosed slightly higher average expenditures for the contributory plans in cents per h o u r 32 (table 28) an d percent of payroll (3.7 percent as against 3.5 percent— table not shown). This finding is significant chiefly because it appears to run counter to a popular conception that, in general, noncontributory plans require greater e m p l o y e r expenditures than contributory plans. O n the basis 30 F o r each establishment, the n u m b e r of employee-vacation w e e k s w e r e aggregated and divided by the average n u m b e r of production a n d related w o r k e r s (including e m p l o y e e s w h o did not receive a paid vacation) to arrive at the average vacation period per e m p loyee. For all establishments with vacation practices, the average thus c o m p u t e d w a s 1.7 w e eks. T h e average vacation per vacationer a m o u n t e d to 1.8 weeks. 31 T h e vacation and earnings intervals could be m a d e n a r r o w e r with a larger n u m b e r of establishments reporting. 32 T h e actual figures reported s h o w e d a difference of 0.5 cent. 67 T A B L E 2 6 . — E x p e n d itu r e s p e r p a y r o ll h o u r fo r Volume of shift w ork Number of esta b lish ments reporting expendi tures s h ift p r e m iu m s A verage per p ayroll hour (cents) fo r re p o r tin g e s ta b lis h m e n ts 1 361 2 .4 75 95 71 67 Ratio of shift prem ium hours to total payroll hours: L ess than 5 p e r c e n t ________ 5 and under 10 p e r c e n t _____ 10 and under 15 p e r c e n t ____ 15 and under 20 p e r c e n t ____ 20 and under 25 p e r c e n t ____ 25 and under 30 p e r c e n t ------30 and under 35 p e r c e n t _____ 35 and under 40 p e r c e n t _____ 40 and under 45 p e r c e n t ------45 and under 50 p e r c e n t _____ 50 percen t and m ore ________ 33 33 35 27 34 50 31 31 21 24 23 1.3 22 24 12 2 5 2 3 - 6 7 7 14 1 2 2 8 10 2 2 6 15 16 19 21 5 4 3 1 - - 1.4 1. 7 2 .4 2. 7 3. 5 3. 0 3. 3 3. 8 4. 5 o f s h ift w o r k , Number o'f establishm ents reporting eixpenditures of — 5 6 4 3 1 2 and and and and and and Under under under under under under 1 under 7 5 6 4 3 2 cent cents cents cents cents cents cents A ll establishm ents _ ---------------------- .8 o n ly * b y v o lu m e - 1 2 - 6 12 4 10 11 16 1 1 - - - - 1 5 1 2 2 2 2 1 15 11 7 cents and over 16 - 7 7 6 - 1953 1 3 3 2 1 3 2 2 - 3 2 - 1 2 1 - 1 1 4 1 N u m b er o f sh ift h o u rs not a v a ila b le fo r 19 e s ta b lis h m e n t s . * The a v e r a g e s in this table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e e x p en d itu re data. T A B L E 2 7 . — E x p e n d itu re s p e r p a y r o ll h ou r fo r s ic k le a v e f o r r e p o r tin g e s ta b lis h m e n ts o n l y * by type o f p la n , 1953 A ll s ic k le a v e plans E x p e n d itu re s p e r p a y r o ll hour (in ce n ts ) F orm al p lan s In fo rm a l or d is c r e t io n a r y plans E s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s ______________ 1 87 60 23 A v e r a g e e x p e n d itu re in ce n ts p e r p a y r o ll h o u r ______ 1.7 2. 2 0. 6 37 19 14 9 4 4 17 13 13 9 4 4 17 5 E s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s of: U nder 1 c e n t ----------------------------------------------------------------1 and un d er 2 c e n t s ----- --------------------------------------------2 and un d er 3 ce n ts ------------------------------------------ ------3 and u nd er 4 ce n ts _________________________________ 4 and u nd er 5 ce n ts _________________ ____________ __ 5 cen ts and o v e r ______________________________________ 1 - - 1 T ype o f plan not r e p o r t e d in 4 c a s e s . * The a v e r a g e s in this table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ied w e r e e x c lu d e d in the co m p u ta tio n o f th e se a v e r a g e s , as w e re e s ta b lis h m e n ts unable to p r o v id e e xp e n d itu re data. 1 T A B L E 2 8 .— E x p e n d itu re s p e r p a y r o ll h ou r fo r p e n s io n plans fo r r e p o r tin g e s ta b lis h m e n ts o n l y * by type o f p la n , 1953 A ll p e n s io n plans E x p e n d itu re s p e r p a y r o ll h ou r (in c e n ts ) E s ta b lis h m e n ts r e p o r tin g e x p e n d it u r e s _______________ A v e r a g e e x p e n d itu r e s in ce n ts p e r p a y r o ll h o u r _____ E s ta b lis h m e n ts r e p o r tin g e x p e n d itu re s of: U nder 2 ce n ts ________ __ ______ __ _____ 2 and u n d e r 4 c e n t s ___________________________________ 4 and un d er 6 ce n ts _ .. 6 and u n d er 8 ce n ts _____ __ _______ __ 8 and u n d er 10 c e n ts __ __ __ __ _____ _______ 10 and un d er 12 ce n ts 12 and un d er 14 ce n ts _ __ __ _____ __ __ 14 and u n d er 16 ce n ts - __ __ __ 16 and u n d e r 18 ce n ts _ _ _ _ _ _ __ __ __ 18 c e n ts and o v e r __ _ __ __ __ __ ~ r^Ti 7. 0 43 40 43 52 35 24 10 8 2 14 C o n tr ib u to r y plans 1 N on c o n t r ib u to r y plans 73 191 7. 2 7. 0 8 33 13 26 10 12 32 37 15 4 5 3 _ 3 20 20 5 5 2 11 1 Seven e s ta b lis h m e n ts did not id e n tify type o f plan . * The a v e r a g e s in th is table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ied w e re e x c lu d e d in the co m p u ta tio n o f th e se a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e ex p e n d itu re data. 6 8 of these data, this w a s not the case a m o n g the establishments c o v e r e d b y this study in 1953. T h e inability to account for variations a m o n g establishments in expenditure ratios, w h i c h differs in degree a m o n g the selected items studied, w o u l d s e e m to be m o r e of a limitation on the types of uses of expenditure data than on the scope an d techniques of expenditure surveys. H o w e v e r , intensive studies directed t o w a r d this p r o b l e m could substantially n a r r o w the area of unexplained variation and, over time, facilitate those uses of expenditure data w h i c h d e p e n d m o r e on specific establishment c o m p a r i s o n s than on aggregate data. Variations in Legally Required P a y m e n t s A m o n g R e g i o n s .— Wit h the exception oT Old A g e and Survivors Insurance, rates and practices regarding legally required p a y m e n t s vary by states. Thus geographic balance in expenditure survey s a m p l e s a s s u m e s specific importance. In u n e m p l o y m e n t compensation taxes, for example, about 98 percent of all rated e m p l o y e r s in Color a d o w e r e assigned a zero rate in 1953; M assachusetts an d R h o d e Island, on the other hand, collected 2.7 percent of taxable w a g e s f r o m all e m p l o y e r s . 33 Regional differences in the levels of legally required payments, in t e r m s of cents-per-adjusted-payroll hour (table 29) an d percent of payroll (table 30), w e r e cau s e d in part by variations in state requirements a m o n g the establishments cov e r e d in this survey. A v e r a g e expenditures for Federal and State u n e m p l o y m e n t c o m p e n s a t i o n taxes in cents-per-adjusted-payroll hour r a n g e d f r o m 102 in W e s t N o r t h Central States to 3.7 in N e w England. The correspond ing range in percent of payroll w a s 0 o7 to 2.1. W o r k m e n ^ c o m p e n s a tion p r e m i u m s , or the equivalent in self-insured costs, r anged f r o m 0.9 cent an hour (or 0.6 percent of payroll) in the South Atlantic region to 2.5 cents (1.3 percent of payroll) in the Pacific Coast States. Total legally required p a y m e n t s w e r e highest, in cents per hour, in the Pacific (8.7 cents), N e w England (8.2 cents) and Middle Atlantic regions (8.0 cents). Percentagewise, the highest expenditures w e r e reported by establishments in the N e w Eng l a n d (4.6 percent) an d Pacific regions (4.3 percent). 33 R e v i e w of Experience Rating, 1953 in L a b o r M a r k e t and E m p l o y m e n t Security, U. S. D e p a r t m e n t of Labor, B u r e a u of E m p l o y m e n t Security, S e p t e m b e r 1954, p. 23. 69 T A B L E 2 9 . — E x p e n d itu r e s p e r a d ju ste d p a y r o ll h o u r 1 f o r le g a lly r e q u ir e d p a ym e n ts f o r r e p o r t in g e s ta b lis h m e n ts o n ly * b y r e g io n and type o f p a y m e n t, 1953 N u m ber of e s t a b lis h m en ts r e p o r tin g e x p e n d i tu re s Ite m and r e g io n A ll le g a lly r e q u ir e d p a y m e n ts: A l l r e g i o n s ---------- ------- ----------------------------N ew E n g la n d _____________________________ — M id d le A tla n tic --------------------------------------------E a s t N orth C en tra l ------------------------------- __ W e s t N orth C e n tr a l ------------------------------------South A tla n tic _______________________________ E a s t South C e n t r a l-----------------------------------------W e s t South C en tra l ------------------------------------M ountain ------------- ------- -------------------------------P a c i f ic ----------------- ----------------------------------I n t e r r e g io n a l __________ __________________ O ld A g e and S u r v iv o r s In su ra n ce ; A ll r e g io n s __ ------------- ------------------------ — N ew E n g la n d _____ __ __ __ --------------------M id d le A tla n tic _____________________________ E a s t N orth C en tra l __________________________ W e s t N orth C e n tr a l ------------------------------------South A tla n tic --------------- ----------------------------E a s t South C e n t r a l____________*__________ __ W est South C en tra l --------------- --------------------M ountain ___________________ ____________ __ P a c i f ic ____________________________________ I n t e r r e g io n a l ____________________ ______ U n em p loy m en t c o m p e n s a tio n ( F e d e r a l and State): A ll r e g io n s __ _____________________________ N ew E n g la n d _________________________________ M id d le A t l a n t i c ------- ---------------------------------________ ____________ E a s t N orth C en tra l W est N orth C e n tr a l ______ _____ _____ __ South A tla n tic _____________ — ____________ E a s t South C e n t r a l------- ----------------------------W est South C e n tra l ___ — ------------------ __ M ountain __________________________ __ __ __ P a c i f ic ______ ____________ _____________ „ I n t e r r e g io n a l __ ------------------ __ _____ __ W o r k m e n 's c o m p e n s a tio n : A ll r e g i o n s ---------------- ------------------ ------------- N ew E n g la n d _____ „ _____ ________ __ __ M id d le A t l a n t i c _____ __ __ __ ------- ------E a s t N orth C en tra l _________________ __ — W es t N orth C e n tr a l _____ _____ _ _ ___ South A tla n tic __ __ ________ __ _____ E a s t South C e n t r a l____________________________ W e s t South C e n tra l _____ _____ ___ M ountain ________ ___ __ _____ ________ __ P a c i f ic __ — _______________ _____ _____ In t e r r e g io n a l ___ ____________ ______ State t e m p o r a r y d is a b ilit y in s u r a n c e : A ll r e g io n s __ __ ____________ _____ __ M id d le A t l a n t i c ------------------------------------------------ N u m ber o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f— A v e ra g e per a d ju s te d p a y r o ll hour1 (ce n ts ) U nder 4 ce n ts 4 and under 6 ce n ts 6 and under 8 ce n ts 8 and un d er 10 ce n ts 10 and u nd er 12 c e n ts 12 and u nd er 14 ce n ts 14 c e n ts and over 524 6. 8 46 196 142 79 33 14 14 53 130 163 39 46 22 16 3 32 20 8 .2 8 .0 6 .2 5 .8 4 .9 5 .5 6. 5 ( 2) 8. 7 6. 5 3 4 10 7 11 4 2 2 _ 3 7 37 75 21 29 9 5 _ 6 7 19 33 56 5 3 6 6 1 7 6 12 31 14 3 3 3 1 _ 9 3 5 13 6 2 6 3 2 1 9 - 1 - - - - - 1 6 - _ 2 1 1 _ 2 516 2 .6 505 11 - - - - - 53 128 157 39 47 22 16 3 32 19 2 .5 2 .7 2 .8 2. 7 2 .0 2 .4 2 .3 ( 2) 2 .8 2 .9 53 124 152 38 47 22 16 3 31 19 - _ - . - . - 515 2 .4 423 53 128 158 39 46 22 16 3 31 19 3 .7 3 .0 2 .0 1 .2 2 .0 2 .2 1 .6 ( 2) 3 .5 1 .9 517 54 129 161 38 46 21 14 3 31 20 _ - - - - 4 5 1 _ _ - - - - _ _ _ _ _ _ - - - - - - - 1 - - - - - - - - - - - 85 7 _ _ _ - 26 96 144 38 45 19 16 3 17 19 24 31 11 1 1 3 3 1 3 - - - - - - _ 1 .7 - - _ _ _ - - _ - - - - _ _ _ - - _ _ _ _ _ - _ _ _ _ - - 14 _ _ _ _ - - - - - - - 472 27 8 6 3 1 - 1 .9 2 .2 1 .4 1 .9 .9 1 .0 ( 2) ( 2) 2. 5 1 .7 49 111 157 33 44 21 10 3 25 19 3 8 3 4 2 1 3 1 1 _ _ _ 2 1 _ _ 5 _ - 38 .8 37 32 .6 32 ' 5 1 1 1 - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ 1 1 - - - - 1 _ _ _ _ _ - - - - - - A d ju s te d p a y r o ll h o u r s = total p a y r o ll h o u r s l e s s v a c a tio n , h o lid a y , and s ic k le a v e h o u r s p a id f o r and taken. 2 N u m ber o f e s ta b lis h m e n ts to o s m a ll to ju s t ify com p u ta tio n o f an a v e r a g e . * T he a v e r a g e s in this ta b le a r e n ot a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the com p u ta tio n o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e ex p en d itu re data. 1 70 T A B L E 3 0 .— E x p e n d itu re s f o r l e g a lly r e q u ir e d p a y m e n ts a s p e r c e n t o f p a y r o ll f o r r e p o r tin g e s ta b lis h m e n ts o n l y * b y r e g io n and type o f p a y m e n t, 1953 N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu re s o f— Item and r e g io n A l l l e g a lly r e q u ir e d p a y m e n ts : A ll r e g io n s ---------------------------N ew E n g la n d -----------M id d le A tla n tic ------E a s t N o rth C e n tr a l ■ W e s t N orth C e n tr a l ■ South A t l a n t i c ----------E a s t South C e n tr a l W e s t South C e n tr a l M o u n t a in ------------------P a c i f i c ----------------------I n t e r r e g io n a l O ld A g e and S u r v iv o r s In s u r a n c e : A l l r e g i o n s --------------------------------N ew E n g la n d -----------M id d le A t l a n t i c -------E a s t N orth C e n tr a l -■ W e s t N orth C e n tr a l ■ South A t l a n t i c ----------E a s t South C e n tr a l W e s t South C e n tr a l • M o u n t a in ------------------P a c i f i c —-------------- — I n t e r r e g io n a l U n em p loy m en t c o m p e n s a t io n (F e d e r a l and S tate): A l l r e g i o n s ------------------------ ----------------N ew E n gland —-------M id d le A t l a n t i c -------E a s t N o rth C e n tr a l W e s t N orth C e n tr a l • South A tla n tic --------E a s t South C e n tr a l ~ W e s t South C e n tr a l ■ M o u n t a in ------------------P a c i f i c --------------------In t e r r e g io n a l W o r k m e n 's co m p e n s a tio n : A l l r e g io n s —— -----------N ew E n gland —— — M id d le A t l a n t i c ------E a s t N orth C e n tr a l • W e s t N o rth C e n tr a l • South A t l a n t i c --------E a s t South C e n tr a l W e s t South C e n tr a l M o u n t a in -----------------P a c i f i c --------------------In t e r r e g io n a l ---------State t e m p o r a r y d is a b ilit y in s u r a n c e : A l l r e g io n s ---------------------M id d le A tla n tic * of A verage 4 3 5 6 2 estab 1 7 percen t Under and and and and and and lishm ents percen t of under under under under under under reporting 1 and p a yroll 3 5 7 expendi percent 4 6 2 over p ercen t percen t percen t p ercent percen t percen t tures 30 524 3 .6 53 130 163 39 46 20 4 .6 4. 1 3 .0 3.1 3 .6 3 .5 4. 1 (M 4 .3 3 .0 - 516 1 .4 8 53 128 157 39 47 2 3 32 19 1 .4 1 .4 1 .4 1 .4 1 .5 1.5 1 .4 P) 1 .4 1.3 515 1.3 53 128 158 39 46 2. 1 1.6 1. 0 16 3 31 19 1.2 P> 1.8 22 16 3 32 22 16 22 .7 1.6 1 .4 .9 _ - 2 4 14 4 . 1 3 1 1 . 4 2 . - 7 38 100 33 15 9 9 2 8 11 126 100 51 19 16 5 32 82 19 15 12 15 37 18 5 15 3 11 19 4 4 3 5 7 3 5 . - 4 7 6 1 1 8 12 1 _ 50 119 151 39 46 4 4 - 157 17 51 43 5 13 8 4 1 1 .8 38 .4 32 .3 20 . - 1 2 - - - 23 14 8 11 3 1 1 10 3 - 4 4 "" 35 2 1 30 2 - - 1 “ 3 15 15 - - - 1 2 2 6 2 - - - - 1 8 2 (l ) (M 1.3 _ . - 2 7 15 30 29 14 3 31 • “ 8 35 82 128 40 18 - 14 - 1.1 1.0 22 - 10 11 54 129 1.0 .6 .6 . - 19 28 1 _ - 1 4 5 1 5 2 2 1 1 3 - 1 1 _ . - - 1 1 1 ~ - - - - 1 - _ - _ 2 - 1 1 1 . - . ~ - 3 - 1 3 3 - • . 10 1 1 1 1 - 35 13 4 1 2 . - 90 2 107 38 46 1 * 1 . - 1 1 . . . ~ 363 21 1 495 .9 .7 12 10 6 1 2 517 161 26 42 7 7 3 3 30 19 232 182 13 22 16 - . 1 N u m b er o f e s ta b lis h m e n ts t o o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e . * T h e a v e r a g e s in this ta b le a r e n o t a p p lic a b le t o m a n u fa ctu rin g a s a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e e x p e n d itu re data. B L iS 2409 U. S. D E P A R T M E N T O F L A B O R Budget Bureau No. 44-6406. Approval expiree Dec. 81, 1864 B U R E A U O F L A B O R S T A T IS T IC S W a s h in g t o n 2 5 , D . C . CONFIDENTIAL T h e M e a s u r e m e n t of Expenditures on Selected Items of S u p p l e m e n t a r y E m p l o y e e R e m u n e r a t i o n , 1953 This survey is designed primarily to provide i n f o r m a tion o n h o w expenditures on selected item s of s u p p l e m e n t a r y r e m u n e r a t i o n for production a n d related w o r k e r s c a n be m e a s u r e d or estimated. If y o u cannot supply s o m e of the information r e quested below, please indicate w h y . R e a s o n s for y o u r inability to furnish su ch data are important parts of this survey. T h e period to be c o v e r e d is the calendar y e a r 1953. If a reply to a n y question m u s t be c o m p u t e d o n another basis, please write in the period c o v e r e d next to y o u r a n s w e r . In the case of multiplant co m p a n i e s , a report covering the plant identified o n the a c c o m p a n y i n g letter w o u l d be preferred. H o w e v e r , multiplant c o m p a n i e s m a y report for all plants if r e c o r d s are ma intained o n that basis. W h i c h e v e r alternative is selected, it is essential that all of the information supplied relate to the s a m e unit. E S T A B L I S H M E N T (S) C O V E R E D N a m e of c o m p a n y Plant(s) c o v e r e d by report City a n d state Authorizing official Title Mailing a d d r e s s D o e s a collective b a r g a ining a g r e e m e nt cover a majority of production a n d r e lated w o r k e r s ? Yes | 1 No 1 [ H. P A Y R O L L . A N D E M P L O Y M E N T I N F O R M A T I O N (Please see instructions H - A , II-B a n d H —d . ) T h is basic information will be ~n ee de d to relate the expendi tures reported in Section IV to annual payrolls, hours, a n d e m p l o y m e n t . A. G r o s s payroll for production a n d related w o r k e r s - 1953: B. Total m a n - h o u r s for production a n d related w o r k e r s (hours paid for - 1953):________________ C. A v e r a g e n u m b e r of e m p l o y e e s during 1953: Total _______________ $ _______________ Pr oduction a n d related w o r k e r s ___________________ 71 72 HI. P L A N T PR A C T IC E S FO R PRODUCTION AND R E L A T E D W ORKERS. T h ese qu estion s a re d esig n ed to obtain in form a tion on the extent and nature o f com pany p r a c t ic e s with r e s p e c t to the item s lis te d . The a n sw ers are n eeded to understand the expenditure fig u re s re p o rte d in S ection IV. A. P aid v a ca tion s in 1953 (see in stru ction II I-A -1 , and A - 2 . ) 1. 2. B. C. D. A p p rox im a te num ber o f p r o du ction and re la te d w o r k e rs r e c e iv in g paid va ca tion s N um ber of weeks* pay (or equivalent) ____________________ w o r k e rs _____________________ w eek ____________________ w o r k e rs w eeks ____________________ w o r k e rs w eeks ____________________ w o r k e rs w eeks T ota l va ca tion m a n -h o u rs paid fo r and taken: ________________ h ou rs P aid h olid a ys (see in stru ctio n I I I - B - 1, and B - 2 .) 1. N um ber o f h olid a ys paid fo r during 1953: ________________ 2. T ota l h olid ay m a n -h o u rs paid fo r but not w orked: __________ days hours P aid sick lea ve (R eport in su red sick n e ss and a ccid en t ben efits under F . ) 1. P le a s e in dicate w hether you have (1) a fo rm a l and definite plan fo r granting paid sick le a v e to a m a jo rity o f e m p lo y e e s |~|, (2) an in fo rm a l o r d is c r e tio n a r y plan | |, or (3) no plan | j 2. T ota l sick lea ve h ou rs paid fo r in 1953:_______ h ou rs. tion I I I - C - 2 . ) (See in s tr u c Shift d iffe re n tia ls 1. ________ Shift________ __________ Am ount o f shift d iffe re n tia ls______ __ C ents P e rce n t per or of or Other hour______ earnings (sp e cify ) E vening ( 2 d ) _______ ________________ _________________ _______________ Night (3 d )________ ________________________________________________________ Other ( e .g . 4th, r e lie f, e tc. ) S p e c i f y ----------------- ------------------------ --------- -----------------------------------------2. Indicate the a pp roxim a te total num ber o f m a n -h ou rs paid fo r in 1953 fo r w ork on a ll sh ifts fo r w hich a d iffe re n tia l w as paid: hours 73 m. P L A N T P R A C T IC E S FO R PRODUCTION AND R E L A T E D WORKERS - C ontinued E. P e n sio n o r re tire m e n t plan 1. 2. 3. D o e s the e sta b lish m en t have a p en sion o r r e t ir e m ent plan c o v erin g a m a jo r ity o f e m p lo y e e s ? Y es | | No | | ___ If so, do e m p lo y e e s con tribu te to it? Y e s □ N oO If pen sion s a re p ro v id e d , in dicate m ethod o f funding: | | On p a y - a s -y o u - g o b a s is . | | T hrough in su ra n ce com pany. Through p r o fit-s h a r in g fund. | | T hrough s e lf-in s u r e d tru st | 1 O ther (sp e cify ) fund. 4. F. Was a pa rt o f p a s t -s e r v ic e lia b ility funded during 1953?____________ Y es o r No In su ra n ce , health, and w e lfa re plan 1. D oes the esta b lish m en t have such a plan co v e rin g a m a jo rity of e m p lo y e e s ? Y es No | [ If so, do e m p lo y e e s con tribu te to it? Y e s | | No 2. M ethod o f com pan y financing: P le a s e in dicate how the plan was fin a n ced in 1953: | | C om pany m ade a fix e d con trib u tion fo r ea ch w o rk e r c o v e re d . The com pany con trib u tion was (indicate amount): ______________d o lla r s p e r m onth p e r e m p loy ee, o r ______________ cen ts p er hou r, o r ______________ p e rce n t o f p a y r o ll, or ________ _____ other (sp e cify )________________________________ | | C om pany did not m ake a fix e d con trib u tion but p ro v id e d ben efits or covera ge. A ll o r m o st o f the ben efits w ere p ro v id e d through: □ P u rch a se o f in su ran ce to c o v e r b en efits | [ S e lf-in s u r e d plan [ | C om bin ation o f above m eth ods (s p e cify )____________________________ 3. B en efits p ro v id e d fo r e m p lo y e e s by plan .Life in su ra n ce (death b e n e fit s )__________________ A ccid e n ta l death and d ism em b erm en t __________ W eekly sick n e ss and a ccid en t (nonoccupational), H osp ita liza tion ___________________________________ S u r g ic a l_____________________ ______________________ M e d ica l (other than s u r g ic a l)____________________ O ther (s p e c ify ) ------------------------------------------------------ 74 IV . CO M PAN Y EXPEND ITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y REM U NERATION F O R PRODUCTION AND R E L A T E D WORKERS The im portan t ty p e s o f in form a tion to be obtained fr o m this s e ctio n a re: 1. 2. 3. 4. 5. Do you keep separate tim e and expenditure r e c o r d s fo r the item s listed*? (C o ls . 1 and 2) If you keep such r e c o r d s , how often do you su m m a rize the e n trie s ? (C o ls . 3 and 4) What w ere the actual expen ditu res fo r each item in 1953? (C o l. 5) If you do not keep r e c o r d s fo r each item , o r i f sep arate r e c o r d s a re not m ain tain ed fo r the unit c o v e r e d by this re p o rt, what w ould be you r b est a p p rox im a tio n o f ex p en d itu res? (C ol. 6) If you p r o v id e d an a p p roxim a tion of ex p en d itu res rath er than actual fig u r e s , b r ie fly how did you d e riv e the estim ate (e. g. "to ta l ex p en d i tu r e s p r o r a te d on the b a s is o f p a y r o lls " ; "n u m ber of days o r m a n -h ou r in v olv ed m u ltip lied by a v e ra g e ea rn in gs, " e t c .) ? (C ol. 7) E a ch o f th ese o b je c t iv e s , tog eth er or sep a ra tely, is im portant fo r this study. B E F O R E FILLIN G OUT THE FOLLOW ING SECTION, P LE A SE READ THE INSTRUCTIONS Item Records for procluctlon and related hoi*kers Are ex Frequency with Are time penditure which records records records are summarized ^ kept? kept? Expendi Yes or No Yes or No Time tures _.(n A. (2) - <3) (*) Expendlitures for production and rc lated work*srs in 1953 I f approximated, Approxi- Indicate briefly for Actual c>r mate each item the method amount or basis of your calculation (use separate sheet If (6) _ 15) necessary) (7) V a ca tio n s , holidayy s, and siLck lea^r e $ $ Paid vacations-------Paid holidays---------Paid sick leave (exclude Insured plans) . . ___ Total . Throughout Section IV use "p" for payroll period, "M" for monthly, nQn for quarterly, "SA" for semiannually, "A" for annually, and "None" i f records are not summarized. 75 IV . CO M PAN Y EXPENDITU RES ON SE LE C TE D ITEM S O F SU PPLE M E N TA R Y REM UNERATION FO R PRODUCTION AND R E L A T E D WORKERS - Continued Item B. Records for production and Expenditures for production and related workers related workers in 1953 Are ex Frequency with I f approximated, Are time penditure which records 1 Approxi- indicate briefly for records records are summarized * Actual or mate each item the method kept? kept? Expendi amount or basis of your Yes or No Yes or No Time tures calculation (use separate sheet i f u) (6) (2) (3) (5) necessary) (7) w O v ertim e and p re m iu m pay (include extra or p re m iu m paym ent on ly ) Premium pay for overtime —daily, weekly, or for work on specific days as such $ $ Premium pay for work on holidays (see in struction IV-A) -------- Shift premium pay- Total—____ Throughout Section IV use nP” for payroll period, nM" for monthly, "Q" for quarterly, nSAn for semiannually, "A0 for annually, and "None” i f records are not summarized. 76 IV. COM PAN Y EXPENDITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y REM UNERATION FO R PRODUCTION AND R E L A T E D WORKERS - Continued Item Records for production and related workers Frequency Are ex penditure with which records records are kept? Yes or No summarized* (2) C. (4) Expenditures for production and related workers in 1953 I f approximated, ApproxiIndicate briefly for Actual or mate each item the method amount or basis of your calculation (use separate sheet i f necessary) (7) (6) (5) P e n sio n o r re tire m e n t plans (E xclude ad m in istrativ e c o s ts ) 2. Expenditures on individual benefits. (Bracket or combine items i f separate figures are not available.) Life insurance (death benefits)___________ Accidental death and dismemberment ______ Weekly accident and sickness benefits ( insured)_________ 1 1 Throughout Section IV use "p" for payroll period, "M" for monthly, mQ" for quarterly, "SA" for semiannually, "A” for annually, and "None” if records are not summarized. 77 IV. COM PAN Y EXPENDITU RES ON SE LE C TE D ITEM S OF SU PPLE M E N TA R Y REM UNERATION FO R PRODUCTION AND R E L A T E D WORKERS - Continued Records for production Expenditures for production and and related workers related workers in 1953 Are ex Frequency I f approximated, penditure with which Approxiindicate briefly for records records Actual or mate each item the method kept? are amount or basis of your Yes or No summarized1 calculation (use separate sheet if necessary) (7) (2) (6) (5) (*0 Item In su ra n ce, health, and welfcire plans - - net exp«m d itu res - Continued D. $ $ Hospitalization. Surgical ______________ Medical (other than surgical)-----------Other (specify) Total E. L e g a lly re q u ire d ppayments •-- em ploye r*s share only Old Age and Survivors 1Insurance-------Unemployment compensation: Federal -------------------State (net)---- — — Throughout Section IV use "P” for payroll period, "m" for monthly, nQw for quarterly. "SAn for semiannually, "A” for annually, and "None” i f records are not summarized. 78 IV . COM PAN Y EXPENDITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y REM UNERATION FOR PRODUCTION AND R E L A T E D WORKERS - Continued Expenditures for production and Records for production related workers in 1953 and related workers If approximated, Frequency Are ex indicate briefly for Approxipenditure with which each item the method mate Actual oir records records or basis of your amount are kept? calculation (use Yes or No summarized* separate sheet if necessary) (7) (2) (6) (5) (<0 I Item E. L e g a lly re q u ire d paym ents - - e m p lo y e r 's share only - Continued $ $ Workmen*s compensation---State temporary disability insurance Other ( specify) Total legally required payments ------------------------ 1 Throughout Section IV use "p" for payroll period, "m" for monthly, V for quarterly, "SA“ for semiannually, "A" for annually, and "Hone" i f records are not summarized. V. A R E TH ERE M AJO R ITEM S OF SU PPLE M E N TA R Y E M P L O Y E E REM UNERATION IN E F F E C T IN ESTABLISHM ENTS WHICH AR E NOT LISTED A B O V E ? G E N E R A L REM ARKS: In stru ctio n s fo r Q u estion n a ire IT E M I. SELF E X PLAN A TO RY IT E M II. P A Y R O L L AND E M P L O Y M E N T IN FORM ATIO N 79 A . G r o s s P a y r o l l .— R e p o rt the. total ea rn in g s o f p r o d u c tion and re la te d w o r k e r s on the p a y r o ll o f e sta b lish m e n t(s) c o v e r e d b y this r e p o r t f o r 1953 in clu d in g d is m is s a l p a y , a ll b o n u s e s , v a c a tion and s ic k -le a v e p ay (in clu din g s ic k n e s s and a ccid e n t b e n e fits , un le s s in su red ) and co m p e n sa tio n in kin d, and p r io r to su ch d edu ction s as e m p lo y e e s ' s o c ia l s e c u r it y co n trib u tio n s, w ithholding ta x e s , g rou p in s u r a n c e , union d u e s, and sa vin gs b o n d s. E xclu d e le g a lly r e q u ir e d p aym en ts m a d e b y e m p lo y e r s such as O ld A ge and S u r v iv o r s In s u r a n ce , u n em p loym en t co m p e n s a tio n , w o r k m e n 's co m p e n s a tio n , e t c . , and p re m iu m s o r o th e r p aym ents m ade in co n n e ctio n with h ea lth , in s u r a n c e , and p e n sio n p la n s . E x c lu d e p aym en ts to m e m b e r s o f A r m e d F o r c e s and p e n s io n e r s c a r r ie d on y ou r a ctiv e p a y r o ll. (Y ou m a y f o l low the d efin ition o f w ages and s a la r ie s that is u se d f o r ca lcu la tin g the w ithholding ta x .) B . T o ta l M a n -h o u r s .— In addition to m a n -h o u rs a ctu a lly w ork ed (not sch e d u le d h o u rs) b y the p ro d u ctio n and re la te d w o r k e r s r e p o r te d in I I -C , a ls o in clu d e h o u rs p aid f o r fo r standby o r r e p o r t ing tim e , s ic k le a v e (in clu din g a b se n ce s c o v e r e d b y s ic k n e s s and a c cid e n t b e n e fits , u n less in s u re d ), h o lid a y s , and v a ca tio n s taken d u r ing the y e a r . If e m p lo y e e s e le c t e d to w o r k during v a ca tio n p e r io d , r e p o r t o n ly actual h ou rs w o rk e d b y such e m p lo y e e s . Do not c o n v e r t o v e r tim e h ou rs to s tr a ig h t-tim e equ iva len t h o u r s . C . A v e r a g e N um ber o f E m p lo y e e s f o r Y e a r . — A dd the tota l nu m ber o f e m p lo y e e s attached to the m a n u fa ctu rin g e s t a b lis h m e n t s ) c o v e r e d b y this r e p o r t who w o rk e d o r r e c e iv e d p a y f o r any p a rt o f the p a y p e r io d (p r e fe r a b ly 1 w eek) ended n e a r e s t the 15th o f e a ch o f 12 m onths c o v e r e d b y this r e p o r t , and d iv id e b y 12 to get the a v era g e n u m ber o f e m p lo y e e s f o r the y e a r . Include a ll p e r s o n s on p aid s ic k le a v e , p aid h o lid a y s , and p aid v a ca tio n during these p ay p e r io d s ; ex clu d e m e m b e r s o f A rm e d F o r c e s and p e n s io n e r s c a r r ie d on y ou r a ctiv e r o l l s . If a y e a r ly a v e ra g e cann ot be r e a d ily co m p u te d , p le a s e p ro v id e b e s t e stim a te and id en tify as an e s t im a te . P ro d u ctio n and R e la te d W o r k e r s .— -Includes w ork in g fo r e m e n and a ll n o n s u p e r v is o r y w o r k e r s (in clu d in g le a d m e n and t r a in e e s ) engaged in fa b r ic a tin g , p r o c e s s in g , a s s e m b lin g , in s p e ctio n , r e c e iv in g , s t o r a g e , handling, p a ck in g , w a re h o u sin g , shipping, m a in ten a n ce, r e p a ir , ja n ito r ia l, w atchm an s e r v i c e s , p ro d u cts d e v e lo p m e n t, a u x ilia r y p ro d u ctio n f o r p la n t 's ow n use ( e . g . , p o w e rp la n t), and r e c ord k e e p in g and o th e r s e r v ic e s c lo s e ly a s s o c ia t e d with the above p r o d u ction o p e r a tio n s . E x clu d e s m e m b e r s o f the A r m e d F o r c e s ; f o r c e a cco u n t c o n s tr u c tio n w o r k e r s h ir e d t e m p o r a r ily fo r plant c o n s tr u c tio n , r e p a ir s o r a lte ra tio n s ; and p e n s io n e r s . N O T E: T h is is the sa m e d e fin itio n u sed b y the B u rea u o f L a b o r S ta tistics f o r its re g u la r m onthly and annual p ro d u c tio n w o r k e r em p lo y m e n t s e r ie s and b y o th e r g ov ern m en t a g e n c ie s . 80 IT E M III. P L A N T P R A C T IC E S F O R W ORKERS A. PR O D U CTIO N AND R E L A T E D P a id V a ca tion s 1. R e p o rt the n u m b er o f p ro d u ctio n and r e la e r s w h o, during 1953, r e c e iv e d a p aid v a ca tio n o f 1 w e e k , the n u m b e r who r e c e iv e d 2 w e e k s , e t c . If the v a ca tio n plan p r o v id e d f o r a s p e c ific n u m b er o f days (ra th e r than w eek s) o r if v a ca tio n b e n e fits w e r e d e te r m in e d as a p e rce n ta g e o f the e m p lo y e e s ' annual e a rn in g s , p le a s e c o n v e r t to eq u iva len t w e e k s , o r fr a c t io n s o f w e e k s , and r e p o r t the n u m b er o f w o r k e r s r e c e iv in g the r e s p e c t iv e "e q u iv a le n t w e e k s " b e n e fits in 1953. F o r e x a m p le , 2 p e r c e n t o r slig h tly m o r e ( e . g . , 2 lU p e rce n t) is to be c o n s id e r e d eq u iva len t to 1 w e e k 's v a ca tio n ; 4 p e r c e n t o r slig h tly m o r e ( e . g . , 4 1/* p e rce n t) to 2 w e e k s ' v a c a tio n , e t c . If the v a ca tio n plan p r o v id e s 1 d a y 's v a ca tio n p e r m onth o f s e r v ic e , c o n s id e r 5 o r 6 days as eq u iva len t to 1 w e e k 's v a c a tio n . 2. The fig u r e to b e r e p o r te d h e re is the n u m b er o f v a ca tio n m a n -h o u rs p aid f o r and taken b y e m p lo y e e s . If an e m p lo y e e e le c t e d to w o rk during h is v a ca tio n p e r io d , and w as given his v a c a tion p a y w ithout a ctu a lly taking any tim e o f f , no h o u rs should be in clu d ed fo r h im . If a ll e m p lo y e e s r e c e iv e d a u n ifo rm v a ca tio n o f 1 w eek , but r e c e iv e d v a ry in g am ounts o f v a ca tio n p a y (so m e 1 w e e k 's p a y , o th e rs 2 o r 3 w e e k s ' p a y , depending on length o f s e r v i c e ) , r e p o r t on ly the nu m ber o f h ou rs p aid f o r and taken, i . e . , o n ly the 1 w eek in th is e x a m p le . B. P a id H olid a ys 1. P le a s e r e p o r t h e re the n u m b er o f p aid h o lid a y s w h ich the m a jo r it y o f e m p lo y e e s r e c e iv e d in 1953. Do n ot in clu d e any u n w ork ed h o lid a y s w h ich f e ll on Saturday and f o r w h ich e m p lo y e e s w e re not p a id . 2. H olid a ys fa llin g within e m p lo y e e s ' v a ca tio n p e r io d , w h ich w e r e p aid fo r in addition to v a ca tio n p a y , shou ld b e cou n ted as h olid a y h ou rs p aid f o r but not w o r k e d . C. P a id S ick L e a v e 1. S e lf e x p la n a to ry . 2. In com p u tin g total s ic k le a v e h o u rs p aid f o r , in clu d e a ctu al n u m b er o f h o u rs p aid f o r ir r e s p e c t iv e o f the ra te o f p a y . W h ere n on o ccu p a tio n a l s ic k n e s s and a ccid e n t b e n e fits a re p aid d ir e c t ly b y the com p a n y (not in s u r e d ), in clu d e c o r r e s p o n d in g h ou rs p aid f o r . D, E, and F . S e lf e x p la n a to ry . 81 IT E M IV . C OM PAN Y E X PEN D ITU R E S ON S E L E C T E D ITEM S OF SU P P L E M E N T A R Y REM U N ERATIO N F O R PR ODU CTION AND R E L A T E D WORKERS G e n e r a l.— P le a s e p ro v id e data f o r each ite m se p a ra te ly , if p o s s ib le . If n e c e s s a r y , h o w e v e r , item s within a group can be b r a c k e te d and a co m b in e d fig u re given . If a p a r tic u la r ite m lis te d d oes not apply to y ou r plant w o r k e r s , p le a s e draw a lin e through the ite m . If no expen ditu res w e r e in v o lv e d in co n n e ctio n with a p a r t ic u la r item in e ffe c t , in s e r t z e r o (0) in a p p ro p ria te co lu m n . R e c o r d s fo r P ro d u ctio n and R e la te d W o r k e r s .— T h e se q u estion s re la te to the a v a ila b ility o f plant o r o ffic e r e c o r d s w hich co u ld b e u tiliz e d to p ro v id e a ccu ra te data. T im e r e c o r d s r e fe r to c lo c k c a rd s o r oth er r e c o r d s show ing the n u m ber o f h ou rs o r days spent b y individual w o r k e rs o r grou ps o f w o r k e rs in co n n e ctio n with the ite m lis te d . E xpenditure r e c o r d s r e fe r to p a y r o lls o r o t h e iy r e c o rd s show ing the w ages o r oth er rem u n era tion paid to w o rk e rs in c o n n e ctio n with the ite m lis te d . F re q u e n cy with w h ich r e c o r d s a re s u m m a r iz e d o r tota lled r e fe r s to the com pany* s p r a c t ic e o f aggrega tin g o r tota llin g the in dividu al tim e o r expen diture r e c o r d s o v e r a given p e r io d o f tim e to obtain fig u re s fo r the plant as a w hole o r fo r its d e p a rtm e n ts. U se the fo llo w in g sy m b o ls in colu m n s 3 and 4 to in d ica te the p e r io d o r p e r io d s ty p ica lly u sed to su m m a riz e tim e and e x p e n d i ture r e c o r d s : P a y r o ll p e r io d M onthly Q u a rte rly Sem iannu ally A nnually No su m m a riz a tio n A. V a c a tio n s, H o lid a y s, - p M Q SA A None and S ick L ea v e P a id V a c a t io n s . — A ll v a ca tio n p a y , whether pay fo r v a ca tion s a ctu a lly taken o r e x tra pay in lie u o f a v a ca tio n , should be r e p o r te d h e r e . T his ite m should be lim ite d to outlays a ctu a lly m ade during the y e a r and should ex clu d e the am ount due e m p lo y e e s fo r le a v e c a r r ie d o v e r into la te r y e a r s . It should in clu d e paym ents fo r unused v a ca tio n lea v e to e m p lo y e e s who lea v e the com p a n y. P a id H olidays and P re m iu m P a y fo r W ork on H o li days . — F o r p u rp o se s o f this study, it is n e c e s s a r y to sep a ra te ex> p en d itu res in c u r r e d through the r e co g n itio n o f p a id h olidays and th ose resu ltin g fr o m w ork on p aid o r unpaid h o lid a y s . The fo llo w in g in s tru c tio n was d esig n ed s o le ly fo r this p u rp o s e . 82 P a id H o lid a y s .— Include under Item 1 V -A expen ditu res f o r p ay fo r the n u m ber o f h olid a y s (o r h olid a y h o u rs) r e p o r te d in III-B a b o v e , even if w o rk was p e r fo r m e d on one o r m o r e o f these h o lid a y s . That i s , if the com p a n y o b s e r v e d the p r a c t ic e o f granting 6 p aid h o lid a y s , the expen ditu res to b e r e p o r te d h e re should r e fle c t the exp en d itu res co n n e cte d with this p r a c t ic e . The additional pay going to e m p lo y e e s who w o rk e d on p aid h olid a y s shou ld be e x clu d e d . P r e m iu m P a y fo r W ork on H o lid a y s .— T o ta l e x p e n d i tu res (w ages plus) fo r h olid a y s w h ich w e re w o rk e d sh ou ld b e re fin e d fo r the p u rp o se o f re p o rtin g p re m iu m p ay exp en d itu res as fo llo w s : a. E x clu d e re g u la r s tra ig h t-tim e pay f o r w o rk p e r fo r m e d . b. E x clu d e the equ ivalen t o f the h olid a y pay the w o r k e r w ould have r e c e iv e d if he did not w o r k . c. T he b a la n ce should b e r e p o r te d under Item I V -B as p re m iu m pay fo r w ork on h o lid a y s. E x a m p le : E m p lo y e e fo r w ork h o lid a y . p en ditu re was p aid a total o f d o u b le -tim e on what w ould have b een a p aid In this c a s e , no p re m iu m e x w ould b e re p o r te d . E xa m p le: E m p lo y e e was p aid d o u b le -tim e and o n e h alf f o r w o rk on what w ould have b e e n a p aid h o lid a y . In this c a s e , the e x p e n d i tu res on the o n e -h a lf tim e sh ou ld be r e p o r te d . E x a m p le: E m p lo y e e was p aid t r ip le -t im e fo r w ork on what w ould have b een a p a id h o lid a y . In this c a s e , o n e -th ir d (his n o rm a l pay) should be r e p o r te d as h olid a y pay un der I V -A ; o n e -th ir d shou ld be re g a rd e d as s tr a ig h t-tim e p ay f o r the tim e a ctu a lly w o rk e d ; and the rem a in in g o n e -th ir d shou ld b e r e p o rte d as p re m iu m pay under Item I V -B . E x a m p le : E m p lo y e e was p aid tim e and o n e -h a lf fo r w ork on an unpaid h olid a y (that is , he w ou ld have r e c e iv e d no pay if he had not w o rk e d ). In this c a s e , the expen ditu res on the o n e -h a lf tim e sh ou ld be r e p o r te d . P a id S ick L e a v e .— Include a ll paym ents m ade b y the co m p a n y d ir e c t ly (not in su red ) to e m p lo y e e s f o r tim e lo s t b e ca u s e o f illn e s s o r n on occu p a tion a l a c c id e n t s , w h eth er it was at the w o r k e r ’ s 83 re g u la r rate o r at a d iffe re n t ra te . E xclu d e paym ents f o r m e d ic a l c a r e , fo r b en efits p ro v id e d under a State te m p o r a r y d isa b ility law (c o v e r e d in I V - E ) , and paym ents b y the com p a n y fo r a ccid e n t and s ic k n e s s in su ra n ce (c o v e r e d in I V -D ). T his ite m shou ld b e lim ite d to outlays a ctu a lly m ade during the y e a r and shou ld not in clu d e the am ount due e m p lo y e e s fo r le a v e c a r r ie d o v e r into la te r y e a r s . It sh ou ld in clu d e ca sh paym en ts fo r unused le a v e . B. O v e rtim e and P re m iu m P a y D a ily and W eek ly O v e rtim e : P r e m iu m P a y f o r W ork on Saturday and S u n da y.— Include on ly pay above re g u la r h ou rly r a t e s . P a y at the re g u la r rate fo r h ou rs w ork ed sh ou ld b e ex clu d e d . T h u s, if an e m p lo y e e r e c e iv e s $ 1 .5 0 an hour f o r s t r a ig h t-tim e , and $ 0 .7 5 add ition al as a p re m iu m fo r ea ch o v e r tim e hour w ork ed , the o v e r tim e ex p en d itu res re p o r te d h e re m u st in clu d e on ly the $ 0 .7 5 o v e r tim e p r e m iu m . Include p re m iu m p ay f o r Saturday and Sunday as su ch o r f o r 6th and 7th d ays. P r e m iu m P a y f o r W ork on H o lid a y s .— (See in s tru ctio n I V -A .) Shift P re m iu m P a y .— Include on ly sh ift p re m iu m pay a b ov e re g u la r h o u rly r a t e s . T his shou ld in clu d e not only d iffe re n tia ls p aid in the fo r m o f a h igh er h o u rly rate but s p e c ia l paym ents to late sh ift w o r k e rs f o r m e a l p e r io d s and fo r any o th e r hou rs not w o rk e d b y them but p aid fo r ( e .g . , 8 hours* pay fo r l l!z hours* w o rk b y the night sh ift, co m p a r e d with 8 hours* w ork fo r the day s h ift). C. P e n s io n o r R e tire m e n t P la n s P e n s io n s . — W here the com p an y pays into an ou tsid e in s u ra n ce fund, the total p re m iu m s p aid by the co m p a n y , le s s any d iv id en d s, shou ld b e r e p o r te d . W here the com p a n y pays into an i r r e v o c a b le tru st, its paym ents into this fund should b e r e p o r te d . (T h is r e f e r s , in e ith e r c a s e , to paym ents fo r p a st s e r v ic e c r e d its as w e ll as paym en ts fo r cu r re n t s e r v ic e c r e d i t s .) If a p e n sio n plan is fin a n ced through a p r o fit -s h a r in g plan and p a st and cu r re n t s e r v ic e c r e d it s a re not a ccou n ted f o r , p ro v id e total co n trib u tio n s. O th e r w ise actual co m p a n y paym ents to p e n s io n e r s sh ou ld b e re p o r te d . In the la tte r c a s e , if the e m p lo y e e s con trib u te to p e n s io n s , a ll e m p lo y e e con trib u tion s during the y e a r should b e dedu cted fr o m the am ount p a id out. P e n s io n expen ditu res r e p o rte d h e re should be r e s t r i c ted to th ose fo r p ro d u ctio n and re la te d (plant) w o r k e r s in the e s ta b lis h m e n t s ) c o v e r e d by this r e p o r t . If the p e n sio n plan a p p lies to m o r e than one plant o f a m u ltip lan t com p an y w h erea s this r e p o r t c o v e r s on ly one e sta b lish m e n t, o r if the plan ap p lies to all e m p lo y e e s , in clu din g o f f ic e , s u p e r v is o r y , te ch n ica l, e t c . , and no se p a ra te r e c o r d s 84 a re kept fo r the p ro d u ctio n and re la te d w o rk e rs in this one e s t a b lis h m en t, m ake b e s t a v ailab le estim a te and in d ica te b a s is . E x clu d e a d m in istra tiv e c o s t s . D. In su ra n ce , H ealth, and W elfa re P lans In su ra n ce , H ealth, and W e lfa re P la n s .— The o b je c t o f this s e c t io n is to d eterm in e the net com p an y expen diture fo r ea ch b e n e fit lis te d in s o fa r as p o s s ib le . If the com p an y m akes a fix e d c o n trib u tion to a union o r jo in tly a d m in iste re d w e lfa re fund and is un able to a llo ca te the c o s t to individual b e n e fits , the total co n trib u tio n to the fund shou ld be re p o r te d under Item I V - D - 1 . If, h o w e v e r, the com p an y is able to m ake such an a llo ca tio n , m ake no entry under I V -D -1 , but in clu d e the expen ditu res under a p p rop ria te headings in IV -D -2 . P aym en ts to e m p lo y e e s fo r tim e lo s t under s e l f in s u re d (n on occu p a tion al) sic k n e s s and a ccid e n t plans w ill be r e p o r te d under MP a id S ick L e a v e ” in S ectio n I V -A . If the com p an y m ade d i r e c t paym ents (not c o v e r e d b y in su ra n ce ) fo r h o sp ita liz a tio n , m e d i c a l o r s u r g ic a l b ills , e t c . , p le a se r e p o r t such expen ditu res in the a p p rop ria te colu m n s o f S ection I V -D , with fu ll explanation in colu m n 7. E xp en d itu res fo r in su ra n ce p re m iu m s shou ld be r e p o rte d a fte r dedu ction s fo r dividends u n less they go to p u rch a se a d d itional in s u ra n ce . W here on ly in fo rm a tio n on g r o s s p re m iu m s is a v a ila b le the g r o s s fig u r e s should be r e p o rte d but shou ld be c le a r ly in d ica ted as g r o s s ; in such ca s e s a note shou ld indicate the p e r c e n t age that dividen ds w e re o f total p re m iu m s during the p re ce d in g y e a r . If the in s u ra n ce , health and w e lfa re plan app lies to m o r e than one plant of a m ultiplant com p an y w h erea s this r e p o r t c o v e r s on ly one esta b lish m e n t, o r if the plan app lies to a ll e m p lo y e e s , including o f f ic e , s u p e r v is o r y , te ch n ica l, e t c . , and no se p a ra te r e c o r d s a re kept fo r the p ro d u ctio n and re la te d w o r k e rs in this one esta b lish m e n t, m ade the b e st a v ailab le e stim a te and in d icate b a s is . E xclu d e a d m in istra tiv e c o s t s . E. L e g a lly R e q u ire d P a y m en ts. L e g a lly R e q u ire d P a y m e n ts .— In the c a s e o f e m p lo y e r s who m ake re d u ce d paym ents b e ca u se o f m e r it ra tin g , on ly the net am ounts a ctu a lly paid should be re p o r te d . W o rk m e n 1s C o m p e n sa tio n .— If s e lf-in s u r e d , p le a se in d ica te in colu m n 7 (1) what item s are in clu d ed in y ou r expen ditu re fig u re and (2) how you handled the p r o b le m o f se g re g a tin g w o r k m e n ^ 85 com p en sa tion c o s t fr o m c o s ts of m e d ic a l and f ir s t - a id s e r v ic e s n o r m a lly su p p lied by the e sta b lish m e n t. State T e m p o r a r y D is a b ility I n s u r a n c e .— T his ite m a p p lie s on ly to esta b lish m en ts in C a lifo rn ia , New J e r s e y , New Y o rk , and Rhode Islan d . If a com p a n y p ro v id e s this b e n e fit through a p r i vate (s e lf-in s u r e d ) plan, no en try should be m ade under I V -E , but the expen ditu re should be re p o r te d under "P a id S ick L e a v e " in I V -A ; if it is p r o c u r e d as p a rt o f a "p a ck a g e " through an in su ra n ce c o m pany, no en try should be m ade under Item IV -E but the expen ditu re shou ld be re p o r te d under IV -D , "W eek ly S ick n ess and A ccid e n t B e n e fit s . " ITE M V . SE L F E X P L A N A T O R Y . ir U. S. GOVERNMENT PRINTING OFFICE : 1956 0 — 374092