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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




BU
REAU 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 .1 H o w e v e r, c o l ­
1
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 1 p o rtio n o f o v e r tim e
1
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

r
U s a b le : e tu rn s

N um ber
s o lic ite d

P ercen t

N um ber

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 -------------------------------------




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 1
1
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 1 seek in g
0
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. 1
1
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. 1
2
1 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
0
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.
1 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 ­
1
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 m u n ity wage su rv e y s and stu d ies
a u 's
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 ro d u ctio n and r e ­
‘p
la ted w o r k e r s .1 In m a n y in s ta n c e s , the su p p le m e n ­
1
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. 1
8 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 ,

1953

v
_
Numb►

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

-

-

-

-

-

-

-

-

-

_
-

-

-

15
18
15
1
11
11
2
10
19
7
12
29
7
8
2
1
3
4

-

-

-

1
5
6
6
10
1

4
6
6
8
1

8

-

211
61
151
158
2

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
... _

487
493
492
489
36

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 ,

9
-

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

-

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

N ot
A n n u a lly s u m m a r iz e d

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 ,

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

O n

th e

a

th e

th a t

s u r v e y s ;

it

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

E s t i m a t e d

p r a c t i c e
c i f i c

a s

t y p e

m in e d

r e a l

s u c h

o f

b y

b u t

d a ta

a

t a k e

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

p e n d it u r e
in

t h e ir

o f

r e c o r d s

h ig h e s t

it

w o u ld

t a k e

d i r e c t i o n

to




th e

h a v e

a

k e p t

e n c o u r a g i n g
f o r

t o

s u p ­

in d ic a t e d
r e g u l a r

w i d e s p r e a d

s t im u la t e

d i s ­

m a n a g e m e n t

th e

t o

o f

to

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

s u b s t a n t ia l

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

d a ta

to

s u m m a r i e s

th a t

b e c a u s e

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

k e e p in g

o f

is

c h ie f l y ,

a n d

p r o v i d e d

t y p e

c o l l e c t i n g

r e s p o n d e n t

in

w o u ld
y e a r

o f

r e c o r d s .

n e c e s s a r y

e s t i m a t i n g
a

th e
h is

w r o t e ,

th e

r a t e

c o m p a n y

S u c h

e a r n i n g s ) . 19

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

e x p e n d it u r e s .

in c lu d in g ,

a r e

"I t

th e

f r o m

19
s i n c e

f a c t o r s

r e p o r t e d

in

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

p r e s u m a b l y

o r

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

m a k e

f o r

th e

m a i l

n o n e t h e le s s

f i g u r e s ,

T h e
d e r i v e d

o f

r e c o r d s

c a r d s

th a t

c o m p a n y

a b i l i t y

e x p e n d it u r e s :

s u m m a r i z a t i o n

o f

r e s p o n d e n t

c l o c k

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

k e p t

In

th e

p r a c t i c e s

d a ta ,

e x p e n d it u r e s

o f

th e

to

b e

th e

b e ­

p e r c e n t

n u m b e r

d iv id in g

s u r v e y i n g

o r e o v e r ,

r e q u e s t e d

n u m b e r

in

a

b y

v a c a ­

E x p e n d it u r e s

m e a n s

e s t a b l i s h m e n t ’s

o r d s .

m

m e a s u r e

b y

t h e s e

w o u ld

b r e a k d o w n s

l e a s t

in

9 5

v a c a t i o n ,

in

a v e r a g e

r e c o r d k e e p i n g

r e m u n e r a t i o n .

r e c o r d 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

p r o v i d e d

g r o s s

th e
w it h

e x p e n d it u r e s .

a lt h o u g h

B u r e a u

i n t e r e s t

s u p p le m e n t a r y

T h e
d a ta ,

th e

p r o b a b l e ,

f i n e r

th e

th e

h o u r s

h o u r s

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

e m p l o y e e

to

c o m p u t e d ,

b y

to

e s t a b l is h m e n t s

p r e m i u m

e s t a b l i s h m e n t s

a s

th e

t o t a l

h o u r s

w h o le ,

a p p r o p r i a t e

p o s s i b l e

o f

s h ift

(t o ta l

l o n g - r a n g e

p l e m e n t a r y

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
h o u r s

b y

w it h

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

th a n

o n

r a t e

o f

a c t u a l

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

20
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

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

to

th a t

f o r

e x p e n d ­

d a ta

f o r

o n e
f o r

p a y "

m o r e

th a n

r e c o r d s

p r o v i d e

t o t a l

o f

in

e s t i m a t e d

p r o p o r t i o n s

p r e m i u m

S lig h t ly

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

a c t u a l

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




o f

w h e r e

1 9 5 2
in

a

r e p o r t s

r o u g h ly

n e e d s

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

p a y m e n t s

s o m e

p e r c e n t .

w e r e

k e e p

d a ta

t h e ir

th e

in

th e

m a j o r i t y

a g r e e m e n t s

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 a t

a b o u t

p r o v i d e d

th e

c u r r e n t

h ig h

i t e m s ,

r e c o r d s

o n

d if f ic u lt

t o t a l

f i g u r e s

t h e s e

8 ).

a l s o

c o r r e s p o n d i n g l y

F o r

k e e p in g

(t a b le

in d ic a t e d

a n d

p a y m e n t s . 20

e s t a b l is h m e n t s

f i g u r e s

a c t u a l

o n

p a s t

r e q u i r e d
th e

h a d

w a s

r e s p o n s e

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

p a y ,

g r o u p

"

b e c a m e

d i f f e r e n c e s

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

th e

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

h o l i d a y s ,

p r e m i u m

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

w e r e
in

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

e x p e n d it u r e

i t e m s

i t e m

o f f e r e d

e s t i m a t e d

T h e

it e m

d a ta

a n

1 1 ).

g iv e n
o t h e r

p r o r a t e

r e s p o n d e n t s
o r

o f

F o r

p r o d u c t i o n

th e

k e e p in g

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

n u m b e r
(2 )

y e a r s

a ll

th e
w a s

p r e v ­

r a t e

o r

a

h o u r s ,

p r o r a t i n g

a n d

m o s t

M o s t

1 2 ).

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
C)
2

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 h r for reporting establishm
ou
ents only*
b item an size o establishm
y
d
f
ent, 1 5
93
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
“

-

-

-

_

.

_
_
_
_

_
_
_
_

_
_
_
_

-

-

- -

-

8
1
2
2
2
1

_

1
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 h r fo reporting establishm
ou r
ents only*
b item an size o establishm
y
d
f
ent, 1 5 - Continued
93

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

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

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

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

“

-

-

-

_
-

_
-

_
-

_
-

_
-

1
1
1
t>

*
3
5
2
1

i
1
-

_
-

_
-

_
-

-

-

-

-

-

_
-

*

-

7
1
2
3
1

-

2
1
1
-

4
1

-

_

1
1
-

10
2
3
3
1
1

_
-

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 _
__ ___ _

74
11
29
c>
21
41

126
<
9
33
29
50
1

20
ce n ts
and
over

3
1
2
-

28
3
8
6
8
3

-

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 _ ____ ______

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
1
5

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 o payroll for reporting establishm
f
ents only*
b item an size o establishm
y
d
f
ent, 1 5
93
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

1
1

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

1
2
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

1
2
7

8

6

32

6

16
5
5

8

17
-

1

19
17
44

1
1

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

1
2

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

-

-

.

1
2
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

1
1

11

_

59

20

1
1

79

6
1
0
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

-

1
2

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

1
0

1
0

p er­
cent

1
0
p er­
cent
and
over

233
18
61
32
94
28

1

-

4

100

125

31

6

9
and
under

59
23
47
14

1
2

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

1
1

1
0
21

20
1
0
1
1
2
1
1
6
1
158

2
20
32

6

2
6
1

-

1
1
2
44
4

8
1
0

1
0

2

2
8

2
6

24

8

2

1
2

36
15

6

6

1
1
0
1

4

1
0
5
7
-

-

1
0
1

3

3

6
2
2

-

-

-

-

-

22
2
1
0
2
8

13

8
2

5

1

14
4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

_

_

_

-

-

-

-

-

-

-

-

-

"

-

-

"

-

-

38

16

1

1

_

_

_

_

_

-

1
1
0
7

2
1
6
111

1

-

_

-

_

-

-

-

-

-

-

_

-

_

_

-

-

2
8
-

1
2
5
28

1

5
5
19
5

40

5

2
1
6

40

4
13
5

1
0

1

9

9
32

20

-

-

35

29
96
30

1
2
6

7

-

54

41

3

4

1
0

3

-

45

1
0

2

7
4
13
4

1
1
2

-

6

-

36

206

30

9
5

-

-

20
6

1
0

2
1
1

-

-

5

1

1
1

-

-

26
5
4

8
2

-

3
3
18
14

78

1

-

-

-

-

-

-

_

_

_

-

-

1

-

-

-

-

1
0

1
1

-

-

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 o payroll for reporting establishm
f
ents only*
b item an size o establishm
y
d
f
ent, 1 5 - C
9 3 ontinu
ed
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

p er­
cent

2

and
and
under under
3
p er­
p e r­
cent
cent

2

30

1

182
3
33

-

14

2
1
86

-

9

39

8
1

4

2

1
2

3
and
under
4
p e r­
cent

126
1
0
39
25
47
5

100
9
37
15
33

6

-

-

-

-

-

-

-

-

-

-

-

-

-

_

_

_

-

"

-

-

-

-

-

-

-

-

-

-

-

8
1

1
_
1

1
1

_

_

_

_

_

_

_
_
_

_
_
_

_
_
_
_

-

-

-

-

-

_

_
_
_

8

1

13

6
7

1

3

4
_

6

5
-

2

1

2

1

-

-

1

1

-

_

"

_

-

_

-

1
-

"

1

-

35
7

9
4
11
4

-

-

-

.4

(M
(M
(M
(M
(M

-

2
1
1

_

14
3

-

-

1

_

1

23
4

6

1

3
-

4

-

107

1
0

4

5
3

_

363

44
19
28
5

1
0
1

-

.9
1 .4
. 2
.9
. 7
. 5

81
53
155
54

_

19
4

1
0

1

49
24
60

1

1
0

-

9
35
18
25
3

1
1

p er­
cent

-

-

20

9
p e r­
cent

8

-

35

1
2

p e r­
cent

1
0
p e r­
cent
and
over

-

-

1
2

1
0
1
2
1

9
and
under

-

90

2

18

and
under

-

157

1

3
4
3

1
0

8

7
and
under

-

-

3

51

6
and
under
7
p er­
cent

_
-

232
13
50
29
98
42

3
8
5
5
2

.9

4

6

1

59

1

1
2

5
4
and
and
under under
5
p er­
p e r­
cent
cent

-

3

1

11
4

1,000

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

6
U nder
6
per­
cen t

5

2
2

8

and
u n d e r

and
under

p er­
cent

per­
cen t

8

1
0
1

1
0

1
0

19
4

2

6
6

3

3

4

1
2

and
and
under un d er

14

16

18

12

14

1
6

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

1
0

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

1
0
2

8

1
1
6

7

13

3

9

1 7 .6

11. 2

4

31

52

1

8

4

1
1

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
1
6
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 1 and ! all selected items e x ­
!
1
,
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 llow w a g e " (group i), " m e d i u m w a g e " (group II), and
f
"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

21)

a v e ra g e ,

a p p e a re d
p a rt,

to

P e rh a p s
th at

re q u ire d
a m ou n t
A g e

and

co s t

m o r e ,

tio n

In
th e

th e

a ll

ite m s

p r a c tic e s

sp on se

in

th is

th is

sa m e

th e

lish m e n ts,

te r m s
(ta b le
be

o f

c a r r y

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 ­

n e g o ­

th ese

s e ­

p o o r e r

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

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 ­

T h e

and

p e rce n t
le v e ls

c o v e re d ,

as

ra tio s

as

s h ift

co m b in e d

to

a

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 .

na ll

oth er

co m p a ris o n

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

H o w e v e r,

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

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

h ig h -w a g e

lo w e s t

a ll

lik e lih o o d ,

le cte d

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

c e n ts -p e r -h o u r

(ta b le

g ro u p s.

ra tio s

S u rv iv o rs

th e

on

or

p a y m e n ts.
fo r

le s s

co n siste n t

th e

e x p e n d itu re

p a y ro ll

e sta b lish m e n ts

and

la tte r

a d ju s te d

e sta b lish m e n t
re fle ct

m e d iu m -

n o

th e

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.

A
T A B L E 2 0 .- — 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 i 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 e

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

2
3

1

27
14

10

28
27
23

16

100
42

24
19
7

3

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 1
2
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

an y

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

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

n o tice a b le

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

ce n ts ).

fo r

a v e ra g e

O n ly
in

and

p e n d itu re s

a ll

fo r

e a rn in g s

p a y in g

v a ria tio n

on

6

p a id

e s ta b lis h ­

p ro v id in g

h o lid a y s
6

4

p a id

a m o u n tin g

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

$ 2 .2 0

o b v io u sly

th e

h ou r

cen ts

b e tw e e n

b etw een

w e re

and

th at

v a ria tio n .

a p p ro x im a te ly

p ro v id in g
3 .2

a m on g

is o la te d .

th e

h o lid a y s

w a s

is

p r a c tic e s

o f

p a y ro ll

a v e ra g e

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

p e r

e x ­

ta b u la ­

a v e ra g e .

show n

to

th e

in c r e a s e d

e s ta b lis h m e n ts

p a id

th e

th e se

ite m

E s ta b lis h m e n ts

e x p e n d itu re s

T he

th e

in fo rm a tio n

fo r

th e

In

sa m e

e x p la in

h o lid a y s

2 4 ).

fo r

fo r

ca u sin g

2 8 .

th e

o f

to

e sta b lish m e n ts

e x p e n d itu re

g r o s s

cen ts

o f p a id

h o lid a y s,

o f

fo r

a m ou n t

(ta b le

p a id

g ro u p

a cco u n tin g

o f

fig u r e s

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 ’
Explained1 variation ranged b e t w e e n 5. 8 cents (60 hours
1
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 i appears to run counter to a
t
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

o n ly * b y v o lu m e

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 _ ----------------------

1 361

2 .4

75

95

71

33
33
35
27
34
50
31
31
21
24
23

1.3

22
24
12
2

5
6
7
7
14

-

-

1

1
2
2
8
10

16

1

-

-

1.4
1. 7
2 .4
2. 7
3. 5
3. 0
3. 3
3. 8
4. 5

-

1
2
-

6

12

-

-

-

1
-

5
1
2
2
2
2
1

7
7

6
-

15
11

4

10

11

2

3

2

2
6
15
16
19
21
5
4
3
1

.8

7
cents
and
over

16

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 ________

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

.

.

182

126

100

51

19

16

5
32
82
19
15

1
2

15
37
18
5
15
3

1
1
19
4
4
3

5
7

3
5

.

-

4

7

6
1
1
8

495

2
.
-

12

1

4
4
-

22
16
3
30
19

-

232
7
38

100
33
15
9
9

2
8
1
1

157
17
51
43
5
13

8

4

1

1

.8

38

.4

32

.3

20

•
“

_
.
-

-

-

-

.
-

-

-

-

10
1
1

1
0
1

13
4

1

4
5

1
2

-

1

-

-

23

14

8

1
10

-

.

“

3

-

4

4

""

35

2
2

-

1
5
2
2
1

1

3

-

1

-

1

_
.

-

-

_

1

2

1
1

1
~

-

-

-

-

-

1

-

-

_

1

~

.

1

1

30

-

-

2

3

15
15

-

19
28

1
2
2

6
2

-

1

1
8
2

(l )
(M
1.3

.
-

.

15
30
29

14
3
31

_

-

8

1
1
3
1

3
-

1

3
3
-

•

35

35
82
128

40
18

1
1

1

-

14
-

7

2

.
-

90

2

1.1
1.0

22

1

*

1

.
-

54
129

1.0
.6
.6

1

.

.
.
~

107

38
46

1
1

_

50
119
151
39
46

4

2

363

21

1

7
3

.9

.7

1
2
10
6
1

13

517

161

26
42
7

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.

w o r k e rs

_____________________ w eek

____________________

w o r k e rs

w eeks

____________________

w o r k e rs

w eeks

____________________

B.

N um ber of weeks* pay
(or equivalent)

____________________

2.

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

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.
2.

C.

N um ber o f h olid a ys paid fo r during 1953: ________________
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.

2.
D.

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
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
o Time tures
Yes or N Yes or N
o
_.(n

A.

(2)

- <3)

(*)

Expendlitures for production and
ork*
rc lated w srs in 1953
I f approximated,
Approxi- Indicate briefly for
Actual c> mate each item the method
r
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, n n for quarterly,
"
Q
"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 N Yes or N
o
o 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, n " for monthly, "Q" for quarterly,
M
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 N
o 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, m " for quarterly,
"
Q
"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 N
o 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 1
Insurance-------Unemployment
compensation:
Federal -------------------State (net)----

— —

Throughout Section IV use "P” for payroll period, "m" for monthly, n w for quarterly.
Q
"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 N
o 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.

79

P A Y R O L L AND E M P L O Y M E N T IN FORM ATIO N

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



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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




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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 M 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 ­
P
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 ^




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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