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The Status of Labor in— P u e rto Alaska Hawaii Reprint from the Monthly Labor Review Bulletin N o. 1191 U N ITE D ST A T E S D E P A R T M E N T OF LABOR James P. Mitchell, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, C om m issioner The Status of Labor in— PUERTO RICO ALASKA HAWAII R e p r in t fr o m th e M o n th ly L a b o r R e v ie w D e c e m b e r 1955 Bulletin N o. 1191 January 1956 U N IT E D S T A T E S D E P A R T M E N T Ja m e s O F P . M it c h e ll, L A B O R Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Com m issioner P o r s a le b y t h e S u p e r i n t e n d e n t o f D o c u m e n t s , U . S . G o v e r n m e n t P r i n t in g O ffic e , W a s h i n g t o n 25, D . C , P r ic e 55 c e n ts Contents A prefatory note_______________________________________________________________________________________________ Contributors to the special section_____________________________________________________________________________ Page vi vm Puerto Rico The labor force and level of living_____________________________________________________________________________ Population and labor force______________________ Industrial development____________________________________________________________________________________ Improvement in economic well-being______________________________________________________________________ Tables: 1. Industrial distribution of employed persons in Puerto Rico, April 1940, 1950, and 1954_____________ 2. Employment and unemployment in Puerto Rico, April 1950 to October 1954_______________________ Charts: 1. Relationship between net migration from Puerto Rico to United States, and mainland unemployment, 1945-55_________________________________________________________________________________________ 2. Distribution of w^,ge earner’s family income, Puerto Rico, 1941 and 1953___________________________ Migration to the mainland_____________________________________________________________________________________ Farm labor migration_____________________________________________________________________________________ City migrants_____________________________________________________________________________________________ Dispersion of the migrants________________________________________________________________________________ The Commonwealth migration program___________________________________________________________________ Labor unions and labor relations_______________________________________________________________________________ Union organization and membership_______________________________________________________________________ Union structure and collective agreements_________________________________________________________________ Arbitration and conciliation_______________________________________________________________________________ Labor disputes____________________________________________________________________________________________ Future course_____________________________________________________________________________________________ Labor laws and their enforcement______________________________________________________________________________ Minimum wages__________________________________________________________________________________________ Hours of work____________________________________________________________________________________________ Workmen’s compensation_________________________________________________________________________________ Vacations, sick leave, and severance pay___________________________________________________________________ Collective bargaining______________________________________________________________________________________ Employment of women and children_______________________________________________________________________ Other labor laws_______________________________________________________________________ Enforcement of labor legislation___________________________________________________________________________ Wage structure and minimum wages___________________________________________________________________________ Wages by industry________________________________________________________________________________________ Occupational wages_______________________________________________________________________________________ Minimum wage legislation_________________________________________________________________________________ Tables: 1. Number and average daily wages of wage and salary workers in agricultural industries, Puerto Rico, 1945-46 and 1953-54____________________________________________________________________________ 2. Number and average gross hourly earnings of production workers in manufacturing industries, Puerto Rico, April 1946 and April 1955__________________________________________________________________ 3. Minimum wage rates in Puerto Rico under the Fair Labor Standards Act, as amended_____________ 4. Minimum wage rates in Puerto Rico under the Commonwealth Minimum Wage A ct_______________ 5. Number and straight-time average hourly wage rates of workers in selected nonprocessing occupations in manufacturing industries, by major industry groups, Puerto Rico, October 1953________________ 1 1 3 5 3 4 5 6 & 8 9 10 10 13 13 14 15 15 16 17 17 17 18 18 19 19 20 20 22 22 25 25 23 23 24 25 26 Alaska The economy and the labor force______________________________________________________________________________ Physical characteristics___________________________________________________________________________________ Economic characteristics__________________________________________________________________________________ Population________________________________________________________________________________________________ Labor force and employment______________________________________________________________________________ m 29 29 29 31 33 IV Alaska— Continued Tables: 1. Relative differences in costs of goods, rents, and services in selected Alaskan cities and Seattle______ 2. Federal obligations in Alaska, fiscal years 1948-54__________________________________________________ 3. Alaska’s income from production and other activities, by region____________________________________ 4. Alaskan civilian population________________________________________________________________________ 5. Distribution of Alaska’s population, by military status, race, and place of residence,by regions, 1950. 6. Average number of workers and wages in covered employment in Alaska, 1940-54________ __________ 7. Seasonal variation in covered employment in Alaska, selected years_________________________________ Charts: 1. Alaska’s population, total and military, monthly average, 1940-54__________________________________ 2. Percentage distribution of average monthly employment in Alaska, by industry division, 1940, 1943, and 1954________________________________________________________________________________________ The U. S. Government as an employer_________________________________________________________________________ Classified and wage-board employees______________________________________________________________________ Employee attitudes_______________________________________________________________________________________ Territorial pay inequalities________________________________________________________________________________ Working rules_____________________________________________________________________________________________ Problems of recruiting____________________________________________________________________________________ Table: Paid civilian employees in executive branch of Federal Government in Alaska, by agency, compen sation authority, and residence, June 30, 1954_______________________________________________________ Wages and working conditions_________________________________________________________________________________ History of wage developments_____________________________________________________________________________ Industry wage levels______________________________________________________________________________________ Underlying factors________________________________________________________________________________________ Typical wage scales_______________________________________________________________________________________ Alaska-stateside wage differentials_________________________________________________________________________ Hours of work____________________________________________________________________________________________ Workinging conditions____________________________________________________________________________________ Tables: 1. Average weekly earnings in employment covered by the Employment Security Act of Alaska, selected industries, 1940 and 1954________________________________________________________________________ 2. Wage and salary scales for selected occupations, by industry category, Anchorage, Fairbanks, and Ketchikan, May 1955___________________________________________________________________________ Labor law and its administration_______________________________________________________________________________ Equal rights and child labor_______________________________________________________________________________ Wages and hours__________________________________________________________________________________________ Worker security___________________________________________________________________________________________ Territorial employees______________________________________________________________________________________ Development of Alaska Department of Labor______________________________________________________________ Federal labor laws________________________________________________________________________________________ The character of industrial relations____________________________________________________________________________ Private industry__________________________________________________________________________________________ Federal Government______________________________________________________________________________________ The Taft-Hartley A ct_____________________________________________________________________________________ Territorial problems_______________________________________________________________________________________ Page 30 31 32 34 34 36 36 33 35 37 37 37 38 39 40 38 42 42 43 43 44 46 46 47 43 45 49 49 50 50 52 52 53 55 55 57 58 59 Hawaii Economic forces and growth prospects--------------------------------------------------------------------------------------------------------------Determining factors in the economy___________________________________________ Underlying instabilities____________________________________________________________________________________ Postwar growth___________________________________________________________________________________________ Possibilities for long-range growth-------------------------------------------------------------------------------------------------------------Absorption of the growing labor force______________________________________________________________________ Summary of underlying trends-------------------------------------------------------------------------------------------------------------------Charts: 1. How Hawaii earns a living, sources of income, 1954________ _____ __________________________________ 2. Long-term trends in Hawaii’s economy_____________________________________________________________ 3. Civilian and military payrolls and Armed Forces expenditures, Hawaii, 1939-54____________________ 63 63 67 67 68 68 68 64 65 66 V Hawaii— Continued Characteristics of the labor force_______________________________________________________________________________ Age and sex composition__________________________________________________________________________________ Racial composition________________________________________________________________________________________ Labor-force participation rates____________________________________________________________________________ Employment-unemployment trends________________________________________________________________________ Seasonal factors___________________________________________________________________________________________ Occupational and industrial distribution___________________________________________________________________ Tables: 1. Population and labor force, and labor-force distribution by sex, Territory of Hawaii, percent changes, 1910-50_________________________________________________________________________________________ 2. Percentage distribution of the labor force, by age and sex, Territory of Hawaii, 1940 and 1950_______ 3. Racial composition of the population and labor force, and labor-force participation rates, by race, Territory of Hawaii, 1940 and 1950______________________________________________________________ 4. Percentage distribution of the population by labor-force status and sex, Territory of Hawaii and the United States, 1920-50__________________________________________________________________________ 5. Civilian labor force: Average number of persons employed and unemployed, Territory of Hawaii, 1945-54_________________________________________________________________________________________ 6. Occupational distribution of the employed labor force, Territory of Hawaii, 1940 and 1950__________ 7. Industrial distribution of the employed labor force, Territory of Hawaii, 1940 and 1950______________ 8. Government employment, total and Federal, as a percent of total employed civilian labor force, United States and Territory of Hawaii, 1948-54_________________________________________________________ Chart: Total employment, and civilian private and Federal Government employment, Hawaii, 1939-54____ Working conditions and workers’ wages________________________________________________________________________ Sugar industry____________________________________________________________________________________________ Pineapple industry________________________________________________________________________________________ Building and construction_________________________________________________________________________________ Longshore industry_______________________________________________________________________________________ Clerical workers___________________________________________________________________________________________ Summary_________________________________________________________________________________________________ Tables: 1. Hourly job rates established under Davis-Bacon Act and by General Contractors Association and median rates for all industries, Territory of Hawaii_________________________________________________ 2. Salaries of selected clerical jobs in the Territory of Hawaii, 1954____________________________________ Chart: Average annual earnings per full-time civilian employee, by major industry group or division, Hawaii, 1939 and 1954__________________________________________________________________________________________ Labor legislation and enforcement_____________________________________________________________________________ Wage and hour law_______________________________________________________________________________________ Child labor law___________________________________________________________________________________________ Wage claim law___________________________________________________________________________________________ Commercial employment agency law______________________________________________________________________ Emigrant Agent A ct______________________________________________________________________________________ Public Works A ct_________________________________________________________________________________________ Workmen’s Compensation A ct____________________________________________________________________________ Labor relations: pattern and outlook__________________________________________________________________________ Development of the labor movement______________________________________________________________________ Labor relations in the sugar industry______________________________________________________________________ Trade union membership__________________________________________________________________________________ NLRB representation proceedings_________________________________________________________________________ Other indicators of union growth__________________________________________________________________________ Issues affecting industrial stability_________________________________________________________________________ Outlook for labor-management relations___________________________________________________________________ Tables: 1. Number of National Labor Relations Board representation elections held, and number in which unions were certified, Hawaii, 1938-54___________________________________________________________ 2. Results of representation elections conducted by the National Labor Relations Board in Hawaii, 1948-54_________________________________________________________________________________________ 3. Number of contracts in force and strike activity, Hawaii, 1940-54__________________________________ Chart: Trade union membership in Hawaii, 1935-53_______________________________________________________ Bibliography on labor conditions, labor problems, labor economics______________________________________________ Page 70 70 71 71 71 72 73 70 70 71 71 72 72 74 74 73 76 76 79 79 79 80 80 79 80 77 81 81 82 83 83 83 84 84 85 85 87 88 89 89 90 92 89 89 89 88 94 Labor in Puerto Rico, Alaska, and Hawaii • • • for producing this special issue o f the MonthlyLabor Review on the status of labor in Puerto Rico, Alaska, and Hawaii, the most compelling is that no other compilation of this type exists. Indeed, as the bibliography of related material so pains takingly unearthed by the Department of the Interior Library reveals, very little has been published in the way of comprehensive studies of labor in any one of the three areas embraced by the present inquiry. But beyond this obvious justification is the interesting and challenging example, to a world beset with colonial problems, of the manner in which the United States has handled (not always without error) the progressive growth toward self-government of these three. That the United States has avoided colonialism is due, perhaps in some small measure, to our national origin in revolt against colonial status. One stem test of this national policy is the well-being of workers in the Territories and the chances for improving their lot. The 15 articles are designed to present facts from which the reader can judge the present situation as well as the prospects for working people. The general pattern followed for each (one is pressed for a single expressive term applicable to all three, bearing in mind that Puerto Rico has Commonwealth status) is a discussion of the economy, labor force, and level of living; the existence and enforcement of labor law; the wage structure and working conditions; and the man ner in which industrial relations are practiced. While each of the three has its distinguishing characteristics (after all, their geographic relationship is a triangle with legs up wards of 6,000 miles long), there are some which they hold in common. All were acquired by the United States late in the 19th century. All enjoy a large degree of self-government and share common United States citizenship. Each was economically primitive at the time of acquisition, with a native population and a very sizable percentage of nonarable land. Lacking basic raw materials, none is self-sustaining. The policies and expenditures of the United O VI f the m an y reasons A Prefatory Note States Government have had decisive effects on their economies. With an impartiality fine enough to satisfy their most enthusiastic advocates, we can proclaim them all to be vacation delights. Despite fast air travel, they remain remote and isolated from the States. Puerto Rico and Hawaii are islands. Alaska and Hawaii are sparsely populated. Since independence was granted the Philippines, they are our largest territories. Similarity in terms of labor, however, does not extend beyond the practice of free trade unionism and collective bargaining. The island Commonwealth of Puerto Rico is an overpopulated nation striving to create an industrial expansion, to raise living standards, to improve its work-force skills, and at the same time to protect its workers from exploitation. The Territory of Alaska is an Arctic and sub-Arctic region, underpopulated and underdeveloped. Much of its industrial enterprise is absentee owned and its stable unionism operated from the States. Government workers constitute a large fraction of the work force. Wages and prices are high, and there is considerable seasonal importation of workers, especially in the con struction field. The tropical Hawaiian Islands have moved rapidly from the primitive to the modern. Their cosmopolitan work force is concentrated in a highly specialized agriculture. National defense expenditures, tourist trade, and transportation activity are a boon to Territorial income. Unemployment, in fact, tends to vary with fluctuations in local Federal expenditures. Industrial relations have not matured and considerable strife has accompanied collective bargaining. Our aims and our means, however, preclude our being encyclo pedic, even within the confines of the labor field. And one of the revealing facts of this compedium is the paucity of facts concerning many items relating to the economics of labor. Some data, as routine and familiar in the States as the daily mail delivery, simply do not exist in Alaska, Hawaii, or Puerto Rico. The authors, chosen for their knowledge and integrity, have drawn on what is available, but at times they have had to improvise or to do without.— L R. K. TO Contributors to the Special Section A ll the authors o f the articles in the special section of the M o n th ly L a b o r R ev iew on L a b o r in Puerto R ico, A la sk a , and H aw aii are either w orking on the scene as experts or h ave been closely associated w ith one o f the areas in a professional capacity. fruitful efforts. O ur sincere thanks go to th em for their fa ith fu l and W h a t th ey h ave w ritten represents their own view s on the m a n y problem s discussed, and n o t necessarily those o f the B u reau or the D e p a rtm e n t o f L a b o r. Special ackn ow ledgm ent is due the Office of Territories of the D e p a rtm e n t of the In terior, and especially to E d w in M . F itch of th at Office, for cooperation and good counsel in planning and review ing m u ch o f the m aterial. E w a n C l a g u e , Com m issioner o f Labor Statistics H. L. C lark is Supervisor of Reports and Analysis, Alaska Employment Security Com mission L eonard E. E vans is Territorial Representative of the U. S. Department of Labor in Alaska E dwin M . F itch is Special Representative of the General Manager, The Alaska Railroad Joseph T. F lakne is Program Director of the Arctic Institute, Washington, D. C. JoaquIn G allart-M endIa is Director, Bureau of Legal Affairs, Puerto Rico Department of Labor T homas H. I ge is Associate Professor of Economics, University of Hawaii A. J. Jaffe is Director, Manpower and Population Program, Bureau of Applied Social Research, Columbia University, and Consultant on Manpower, Puerto Rico Depart ment of Labor R uth W. L oomis is Deputy Attorney-General, Hawaii Department of Labor and Industrial Relations M argarete M cB ride is with the U. S. Department of the Interior Library E dwin C. Pendleton is Associate Professor of Economics, University of Hawaii H arold S. R oberts is Dean of the College of Business Administration and Director of the Industrial Relations Center, University of Hawaii G eorge W. R ogers is the Economist in the Office of the Governor of Alaska C larence Senior is Chief, Migration Division, Puerto Rico Department of Labor James H. Shoemaker is Vice President and Research Director, Bank of Hawaii F ernando Sierra -B erdecIa is Secretary of the Puerto Rico Department of Labor R obert Sroat, until his death in December, 1955, was Administrator, Bureau of Labor Law Enforcement, Hawaii Department of Labor and Industrial Relations Samuel W eiss , at time of his death in July 1955, was president, Samuel Weiss Research Associates, and Consultant on Statistics, Puerto Rico Department of Labor F rank Z orrilla is Chairman, Puerto Rico Minimum Wage Board vm 371655— 56---2 PUERTO RICO fostered; others were neglected. A fte r the war, the G overn m en t renewed its broader efforts to advance the islan d’s econom y. The Labor Force and Level of Living Since m ade 1940, in h ave been socioeconom ic field. and application of m odern public health m eth ods, A . J. J a f f e a n d im provem en ts every T h e G o v ern m en t’s program s of health education together S a m u e l W e is s great practically w ith general econom ic im provem en t, resulted in a decline in the death rate from 18.4 per thousand in 1940 to 7.7 per thousand in 1954. A t the sam e tim e, life expectan cy rose from 46 years in 1940 to 61 years in 1954— an increase of 1 year annually during those 15 years. E n rollm en t in educational in stitutions in Puerto U n t il r e c e n t , y e a r s Puerto R ico was a ty p ica lly R ico increased from less than 3 0 0 ,0 0 0 in 1940 to underdeveloped area, n ot too different from m a n y alm ost 6 0 0 ,0 0 0 in 1954. of the present-day, underdeveloped areas in need G overn m en t expenditures for education increased of assistance. from $7 m illion to $38 m illion annually. largely T h e econom y of dependent raised for export. upon the island sugarcane, W hat was O n ly sm all am oun ts of addi tional crops, such as coffee and raised. w as which little tobacco, were m anufacturing there D u rin g this sam e period, M u c h im provem en t has been m ade in housing through large-scale housing program s. slum clearance and public E lectric pow er facilities h ave was been greatly expanded: Betw een 1940 and 1952, consisted prim arily of handw ork, of which on ly electric pow er production rose from 174 m illion needlework products were of a n y real significance. to 735 Since m o st of the good agricultural land was used com m unications, w ater su pply, and sewerage h ave to grow sugarcane, a large proportion of the food also been continu ally im proved P o p u la t io n a n d m illion kilow att-hours. T ran sp ortation , and expanded. consum ed b y the population had to be im ported. T h e lack of fertile soil (only abou t half of the land is arable) and the v ery high L a b o r F o rc e population density (over 630 persons per square m ile) m ade E ffect o f P opu lation Changes. agriculture an extrem ely unsatisfactory base for 1954, changes in the size of the labor force gener the Puerto R ican econom y. ally tended to parallel the changes in the size of U n d er these condi B etw een 1940 and tions, the people were quite poor, w ith all of the the population of labor-force age, th at is, the civil accom pan ying characteristics of p ov erty including ian population 14 years o f age and over, excluding u n em ploym en t, illiteracy, high death rate, poor inm ates of institutions. housing, and so on. show, in A p ril 1940, the labor force constituted In the m id -1 9 3 0 ’s, the Puerto R ican G overn 5 2 .0 A s the follow ing figures percent o f the population o f labor-force a ge; m en t gave serious consideration to the question in A pril 1950, 5 5 .6 percen t; and in A p ril 1955, 4 8 .6 of how to advance the islan d’s econom ic well percent. being. th at Certain im p ortan t steps were taken at tim e, including hydroelectric a great system , the expansion of establishm ent of the a cem ent factory, expansion of the road system , and the adoption of various financial m easures designed was n ot until 1940, 1940_________________________ 1950_________________________ 1954_________________________ 1955_________________________ Labor force 1,150,000 1,293,000 1,275,000 1,327,000 598,000 719,000 631,000 644,000 T h e labor-force and p opu lation changes were to aid econom ic developm ent. It April April April April Population of labor-force age how ever, when the n o t exactly parallel because of outm igration and Popular D em o cra tic P a rty cam e into office (under w ithdraw als to the m ilita ry .1 the leadership of L uis M u n o z M a rin , the present who entered the m ilitary and the m a jo rity of the G overnor), th at a real program developm ent got under w ay. aided and hindered of econom ic W o r ld W a r I I both the program . P rojects of direct concern to the U n ited States war effort were outm igrants m ore m en were m en . A ll of the persons Since n orm ally m any than w om en are in the labor force, these w ithdraw als during the 1 9 5 0 ’s resulted in 1 See article on p. 8. 1 a 2 reduction in the size of the labor force sim ultane been abou t 2 2 0 . ously w ith a slight increase in the adult population. the population in Puerto R ico could m ore than T h e num ber of civilians 14 years of age and over in Puerto R ico increased by 1 4 3 ,0 0 0 betw een A pril 1940 and A p ril 1950. persons D u rin g this T h e rate of 2 20 indicates th at double during the n ext 25 to 30 years. W h eth e r it will cannot b e predicted, since future changes in birth and death rates are certain to occur. decade, there was a n et m igration to the m ainland N evertheless, even if the birthrate should de o f abou t 1 54,000 persons, m o st of w h om were of crease greatly in the future and reach the level of labor-force a ge; this is abou t 13 percent of the th at in the continental U n ite d S tates (net repro H en ce, the duction rate of 156 in 1 9 5 2 ), it will be m a n y years total natural grow th o f the adu lt population w as before such decreases affect the am ou n t o f natural alm ost 3 0 0 ,0 0 0 for the decade, or abou t 2 y2 percent grow th in the population of labor-force age. per year. is so because 14 years m u st elapse betw een the population of labor-force age in 1940. B etw een A pril 1950 and A pril 1954, the p opu la tim e o f b irth and the tim e th a t a person becom es tion of labor-force age decreased fro m 1 ,2 9 3 ,0 0 0 to of w orking-force age. an estim ated deaths b y abou t 6 5 ,0 0 0 per year. 1 ,2 7 5 ,0 0 0 . T h e n et m igration to T h is C u rren tly, births exceed F ourteen years the m ainland o f persons 14 years o f age and older from now , the survivors will still n um ber close to num bered abou t 1 6 0 ,0 0 0 , or abou t 12 percent of 6 0 ,0 0 0 per year, in the absence of outm igration . the num ber living in Puerto R ico in 1 9 5 0 ; this is an unusually large lo ss.2 A lso, a bou t 3 6 ,0 0 0 m en Econom ic N eed for The M igration . com bined w ithdrew fro m the civilian population to enter the effects of previous high fertility rates and a sm aller m ilitary service. num ber o f outm igrants becam e apparent in the H en ce, during these 4 years the natural grow th o f the adu lt population am oun ted year to 1 7 8 ,0 0 0 or over 3 percent per year. natural grow th of the civilian popu lation o f la b or- A p ril 1954 through M arch 1955. The force age am oun ted to abou t 5 2 ,0 0 0 in this year C om pared to the continental U n ited The Birthrate. States, Puerto R ico has a high rate of grow th in its (th at is, the n um ber population of labor-force age, resulting from the 14). high birthrate o f p a st decades. nental U n ited Prior to 1940, the of persons becom ing 14 years of age m inus deaths am ong all civilians over Sim u ltaneou sly, the recession in the conti S tates greatly curtailed the net death rate w as also v ery high b y m odern standards outm igration to an estim ated 1 6 ,000 civilians 14 (1 8 .4 per th ousand in 1 9 4 0 ), b u t during the 1 9 4 0 ,s years of age and over as compared w ith 3 6 ,0 0 0 in it fell rapidly. In 1950, it w as still fairly high, the year ending M a rc h 1954. A lso , curtailm ent a bou t 15 per th ou san d ; b u t b y 1954, it had dropped in the size o f the A rm ed Forces resulted in a to 7.7 per thousand, which is n o t v ery different return o f abou t 16,0 0 0 m ore m en to civilian life from than were inducted. the death rate on the m ainland. The T h e n et outm igration w as accelerated reduction in the death rate during the canceled b y 1 9 5 0 ’s, decade, A rm ed Forces. natural force age grew b y the am o u n t of natural increase, com pared contributed to w ith the the increased preceding rate of grow th of population o f labor-force age since 1950. D u rin g the la st decade, the birthrate has n o t the excess of discharges from the T h e civilian popu lation of la b or- abou t 5 2 ,0 0 0 , to A pril 1, 1955. T h is is a grow th o f abou t 4 percent an estim ated 1 ,3 2 7 ,0 0 0 as of decreased enough to alter m aterially the future in n atural labor-force age in the continental U n ited States increase labor-force age. in the civilian population of In the period 1 9 3 9 -4 1 , the n et reproduction rate is estim ated to h ave been abou t 1 8 4 ; 10 years later, in 1 9 4 9 -5 1 , abou t 2 2 4 .3 and In 1953 1954, the n et reproduction rate m a y h ave * i See also Demographic and Labor Force Characteristics in Puerto Rican Population of N ew York C ity, N ew York, Bureau of Applied Social R e search, Columbia University, 1954 (pp. 3-29). * Generally speaking, a rate of 100 implies that birth and death rates are about equal, that is, during a generation there would be no increase in the size of the population. A rate of 220 means that a stable population would increase by about 120 percent during one generation, providing birth and death rates at all ages remain unchanged. 1 year. By com parison, the population of grew b y abou t 1 percent during this sam e year. In 1 year then, as a result of the curtailm ent o f m igration, population grow th in Puerto R ico m ore than m ad e up for the loss between 1950 and 1954. O n A p ril 1, 1955, the population o f labor-force age was abou t 3 4 ,0 0 0 greater than on A p ril 1 , 1950. C learly, if outm igration should continue to be curtailed, the p oten tial grow th o f the labor force w ould be of such m agnitu de as to increase greatly the difficulties of providing enough additional 3 jo b s ; indeed, continued large-scale outm igration ployees is engaged in food and tobacco m anufactures. a necessary condition for further econom ic d evelopm en t. in G overnm en t-sponsored plants were In the lon g run, the m o st im p ortan t aspect o f the C o m m o n w ea lth ’s efforts to speed econom ic In d u s tr ia l developm en t m a y be triggering the action o f the D e v e lo p m e n t industrialization program . T h e core o f the C o m Government Encouragem ent. m on w ealth ’s condition efforts o f the to im prove island has the econom ic been the program A s new and relatively good jo b s are created through G o vern m en t spon sorship of new plants, th ey tend to h ave a m u lti plier effect. D em a n d increases for consum er goods, “ O peration B o o tstra p ” designed to increase indus housing, and so on. trialization. som e tim e, large-scale econom ic developm en t will T h e Puerto R ican G ov ern m en t has recognized th at increasing p ro du ctiv ity through I f this process continues for take place. industrial expansion is an im p o rta n t factor in ad van cin g the Puerto K ican econom y— w ith its high The Changing E m ploym en t Distribution. population In A pril o f n atural resources, 1954, 36 percent of all em ployed persons in Puerto chronic u n em p loym en t, and relatively low stan d - R ico were engaged in agriculture, com pared w ith dard o f living. 37 percent in A p ril 1950 and 4 5 percent in A pril To density, l a c k aid such industrialization, the Com m on w ealth has offered various inducem ents to en courage new industries to locate on the island. T h ese incentives include tax exem ption, industrial services, provision o f fa cto ry buildings, and other form s o f assistance. B etw een the end o f W o r ld W a r I I and A p ril 1954, as a result, 28 7 new m a n u facturing plants com m enced operation. 1954, th ey em ployed abo u t 2 3 ,0 0 0 In A pril persons, or one-third o f all em ployees in m anu factu rin g. In general, these G overnm en t-sponsored p lan ts are m u ch larger than other Puerto R ican factories; th ey average 80 em ployees per p lan t, alm ost 3 tim es the average w ork force of other factories. F or the m o st part, th ey use m odern m achinery and produce goods identical w ith those m an u fac tured on the m ainland. T h ese include apparel, electronics products, electric razors, radio parts, and pharm aceuticals. 1940 (table 1). T h e great m a jo rity o f these w ork ers were in the sugarcane fields. were engaged in other crops, such as coffee and tobacco. A m o n g nonagricultural industries in A p ril 1954, com m erce (wholesale and retail trade) em ployed the greatest n um ber o f workers, w ith abou t 8 5 ,0 0 0 , or 15 percent o f the em ployed. abou t 7 2 ,0 0 0 em ployees. em ployed 6 3 ,0 0 0 persons. T h e m o st ou tstan ding change from earlier peri ods is the increased facturing structure in a relatively brief period. F o r exam ple, in A p ril 1946, 6 o u t of every 10 em ployees in m anu factu rin g were in the food and tobacco industries, b u t in A p ril 1954, on ly 4 out of 10 were so em p lo yed .4 The G o v ern m en t’s efforts to diversify in dustry is also evident in the fa ct th at in A p ril 1954 only 7 percent of the e m - * * Data obtained from publications of the Puerto Rico Department of Labor, Bureau of Labor Statistics. em p loym en t in the b etter payin g and m ore productive industries and, conT able 1.— In d u stria l d istribu tion o f em p lo yed p erson s in P u e rto R ic o , A p r i l 1 9 4 0 , 1 9 5 0 , and 1 9 5 4 Num ber (in thousands) Percentage distribution Industry division April 1954 m ainland. Puerto R ic o ’s industrial developm en t program T h e third largest group consisted of the various service industries, which Since Puerto R ico is part has brou ght a bou t a diversification of the m a n u M an u factu rin g, excluding h om e needlework, follow ed closely, w ith of the U n ited States, there is of course no tariff on Puerto R ican m anufactured goods shipped to the D u rin g the off season, a larger proportion o f agricultural workers April 1950 April 1940 April 1954 April 1950 April 1940 Total em ploy ed.......... ................ 559 638 508 100 100 100 Agriculture..................................... Nonagriculture................... .......... Construction....................... . Manufacturing..................... Home needlework____ All o t h e r ....................... Trade, wholesale and retail. Transportation, commu nication, public utilities. Services................................... Governm ent3....................... A ll other. ............................... 200 359 27 97 25 72 85 235 403 24 125 61 64 92 230 278 16 101 45 56 54 36 64 5 17 4 13 15 37 63 4 20 10 10 14 45 55 3 20 9 11 11 33 63 48 6 32 78 47 5 20 1 64 *18 4 6 11 9 1 5 12 7 1 3 13 4 1 1 Partially estimated. 3 Includes public school and college teachers. Source: 1940 data from Puerto Rico Population, U . S. Census of Population, Bull. N o. 2, table 14; 1950 and 1954 data from reports of the Puerto Rico D e partment of Labor, Bureau of Labor Statistics. 4 versely, the decreased em p loym en t in the relatively poorer p ayin g industries. T h e better pay in g jobs are found in construction, m anufacturing (exclud L arge seasonal fluctuations in u nem p loym en t are still occasioned b y the grow ing of sugarcane. B e tween F ebru ary and M a y or June, the cane is cu t ing h om e needlew ork), and transportation, com and em p loym en t is at its highest levels. m u nication , these m o n th s, the u n em p loym en t rate in agricul and public utilities. G overn m en t D u rin g em p lo ym en t— which includes schoolteachers, fire ture m a y fall to 5 percent or so. m en , policem en, doctors, nurses, and other public for sugarcane, u nem p loym en t in agriculture m a y health workers, as well as adm inistrators— also rise to as high as 20 percent. belongs to the group of better payin g pursuits. em p loym en t, on the other h an d, there is com para A lto geth er, such em p loym en t increased by an estim ated 13,000 betw een 1950 and 1954. In the off season In nonagricultural tiv ely little seasonal change, and the u n em p lo y m en t rate varies o n ly from abou t 10 to 14 percent. T h e poorer p ayin g and less productive jobs are D esp ite the decreases in u n em p lo y m en t w hich fou nd in agriculture, hom e needlew ork, com m erce have (especially retail trade, which includes pushcart chronic u n em p loym en t averaging abou t 15 percent occurred, Puerto K ico still suffers and other peddlers), and the service occupations of the labor force (table 2 ). (especially dom estic service). im p ortan t problem s in the C o m m on w ealth . E m p lo y m e n t, in from T h is is one of the m o st D u r cluding unpaid fa m ily workers, in these industries ing recent years, the pressure o f population has decreased 9 3 ,0 0 0 betw een 1950 and 1954. The been lessened b y large-scale m igration to the m a in h om e- land, which reached a high o f 6 9 ,0 0 0 in 1953, and m o st significant decrease was in the needlew ork industry, in which em p loym en t de dropped to an estim ated 2 2 ,0 0 0 in 1954. clined from 6 1 ,0 0 0 to 2 5 ,0 0 0 , or from 10 percent 1 show s, net outm igration has fluctuated inversely o f all em ployed persons to 4 percent. w ith levels of u n em p loym en t on the m ainland. A s chart Since the n um ber o f u nem ployed decreased dur I f large-scale outm igration as experienced during ing this period, although the proportion o f the 1953, for exam ple, should n ot occur again in the u nem ployed to total labor force rem ained the sam e, future, u n em p loym en t will p robably reach even it appears th at these individuals were n ot deprived higher levels than at present because of the p oten o f jo b s which th ey w anted. tially large grow th in the population of labor-force M o r e probably, th ey took job s in the b etter p ayin g industries, or m i age, and consequently, in the labor force. grated to the continental U n ited States, or entered econ om y at present has difficulty in providing the A rm ed Forces. In addition, a few w om en and older m en m a y h ave w ithdraw n from the labor T able 2.— E m p lo y m e n t and u n e m p lo y m e n t in P u e rto R i c o y A p r i l 1 9 5 0 to October 1 9 5 4 force. [In thousands] Changes in U nem ploym ent. In A p ril 1940, the u nem p loym en t rate for m en was abou t 16.2 per cent. Date Labor force Em ploy ment Unem ployment Employment in manufacturing (excluding home needle work) 82 96 116 142 84 111 117 129 76 90 106 123 64 77 100 117 72 90 109 124 67 64 52 56 53 62 54 59 56 59 65 63 59 64 63 67 65 72 66 67 60 71 B y A pril 1950, it had fallen to 10.4 percent, and b y A p ril 1954, to 9.0 percent. Several fac tors— including the C o m m o n w ea lth ’s fostering of econom ic developm en t, full or reasonably full em p lo y m en t on the m ainland since the end of W o rld W a r I I , and extensive outm igration— com bined to reduce The the u nem p loym en t rate am ong m en in Puerto R ico. A m o n g w om en , the u n em p loym en t rate seem s to h ave rem ained abou t the sam e during the 1 9 5 0 ’s, fluctuating between abou t 10 and 14 percent, w ith no discernible trend.5 A lm o st all w orkingw om en 1950: April........ ........... July____ _____ October________ 1951: January........ . . . April____ ______ July____________ October.......... . . 1952: January________ April___________ Ju ly......... ........... October________ 1953: January________ April___________ Ju ly.____ ______ October________ 1954: January________ April.................... July____________ October________ 1955: January________ April.............. .. 719 710 710 717 716 705 681 669 662 662 641 643 637 624 630 639 631 626 628 648 644 638 615 594 574 631 594 563 541 586 572 535 520 573 547 531 522 559 536 519 525 578 are engaged in nonagricultural em p loym en t. • N o t e — Because of rounding, employment and unemployment figures do not necessarily equal the labor force. • These figures exclude women engaged in home needlework, for whom it is difficult to measure unemployment. Comparable data for 1940 are not available. Source: Reports of the Puerto Rico Department of Labor, Bureau of Labor Statistics. 5 enough additional relatively w ell-payin g jo b s for those now underem ployed 6 or u nem ployed. N a t ural grow th, unless offset b y outm igration, will re C hart 1 . R ela tio n s h ip B etw een N e t M ig ra tio n from P uerto R ico to U n ite d States, a n d M a in la n d U n e m p lo y m e n t, 1 9 4 5 - 5 5 quire providing betw een 2 and 4 percent additional new job s each year for the growing labor force. Im p ro v e m e n t in E c o n o m ic W e ll- B e in g Operation B o o tstra p , aided b y the large-scale outm igration since W o r ld W a r I I , has resulted in rem arkable econom ic gains for the residents of Puerto R ico. T h e outm igration offset the natural population gro w th ; therefore, the econom ic gains during these years were n ot dissipated am ong an ever-grow ing population. In stead, th ey were divided am ong a b o u t the sam e num ber of people each year, so th at, on the average, each person im proved his level of living. A s a result, the incom es of both individuals and fam ilies increased over the last decade and a half at a far m ore rapid rate than prices, enabling them to b u y m ore goods and services and to satisfy a greater variety o f m aterial w an ts. A ll m ajor sectors of the econom y— wage earners, farm ers, and businessm en— shared in these econom ic ad vances. P uerto R ic o ’s average per capita incom e is n ow greater than the average in m o st L atin Am erican countries, although it still falls far short of per capita incom e in even the low -incom e States on the m ainland. Increased F a m ily Incom e. T h e average incom e of w age earners’ fam ilies in Puerto R ico rose from $ 3 6 0 in 1941, to $1,081 in 1952, and to $ 1 ,1 8 0 in 1 9 5 3 .7 could N o t all of the increased incom e, of course, be translated into power in the m arket place. increased purchasing B ecause of an 8 0 .3 - percent rise in the cost of living between 1941 and 1953, the average wage earner’s fa m ily would h ave sents the im provem en ts in real incom e. had to increase its m o n ey incom e from $360 to increase am oun ted to 82 percent over the 12-year $ 6 4 9 m erely to break even in term s of purchasing period. pow er. incom e am ounted to slightly over 5 percent per T h e difference betw een this break-even p o in t and the actual 1953 average of $ 1 ,1 8 0 repre year. T h is O n an annual basis, the increase in real Starting w ith an y given year, this rate of increase would raise incom e b y 50 percent in 8 years and would double it in approxim ately 14 ® See Concept and Measurement of Underemployment, M onthly Labor Review, March 1955 (p. 283). 7 Includes money income and other money receipts which are not consid ered regular income, such as inheritances, as well as the value of food pro duced for family use. 1941 data are from Incomes and Expenditures of Wage Earners in Puerto Rico, Puerto Rico Department of Labor with -cooperation of U . S. Department of Labor, Bull. 1, M a y 1, 1947; data for 1952 and 1953 are from income and expenditure surveys by the Puerto Rico Department of Labor, Bureau of Labor Statistics. years— a rem arkably rapid rate of progress. O ver the 12 years from 1941 to 1953, the pro portion of w age earners’ fam ilies receiving an an nual incom e of $ 1 ,0 0 0 or m ore rose from 2 .9 to 52.2 percent and those havin g an incom e below $500 declined from 8 0 .9 to 6.9 percent (chart 2 ). 6 C h art 2 . D is trib u tio n o f W a g e Earner's F a m ily In co m e, Puerto R ic o , 1 9 4 1 a n d 1 9 5 3 1 A lth ou gh the proportion o f incom e spent for food declined, the increase in incom e was sufficient to enable w age earners' fam ilies to b u y m ore and b etter food and still h ave enough m o n ey left o v er to b u y m ore of other goods. Expenditu res fo r m edical care decreased from 5.1 to 2 .2 percent, a result of the C om m o n w ea lth 's increasing m edical and health facilities in the years since W o r ld W a r II ended. A lso, the average w age earner's fa m ily in 1952 brou ght 2.7 tim es the am oun t o f clothing and 4 .2 tim es as m u ch furniture as it did in 1941. T hese kinds of changes in expenditure patterns clearly reflect an im proved standard o f living. Increased P er Capita Incom e. A ll m a jo r elem ents of the P u erto R ican com m u n ity h ave m ad e sub stantial gains in recent years. A ccordin g to d ata com piled b y the Puerto R ico Planning B oard , per capita incom e increased from $233 in 1 9 4 3 -4 4 to $431 in 1 9 5 3 -5 4 . D u rin g this 10-year period, th e cost of living rose b y 3 7 .7 percent, resulting in an increase of abou t 34 percent in real incom e, or 3.1 percent annually, com pared w ith an increase of 85 percent in m o n ey incom e. T hese figures suggest th at the incom e o f w age earners' families (with an increase of sligh tly over 5 percent per year in real incom e betw een i Data include money income plus the value of food produced for family use. In addition, data for 1941 include, but those for 1953 exclude, money receipts not considered regular income, such as inheritances. See text foot note 7 for source of data F a m ily Expenditure Patterns. The increased incom e of w age earners' fam ilies in Puerto R ico resulted in a shift in their expenditure patterns. In 19 5 2 ,8 w age earners' fam ilies spent relatively less of their incom e for food and relatively m ore for clothing and household furnishings than in 1941, as shown below : H ow ever, betw een 1 9 4 3 -4 4 and 1 9 5 3 -5 4 , there was no significant change in the distributive shares of total incom e p ay m en ts. N either wages nor profits rose at the expense of the other. C om pensation to em ployees changed from 6 1.6 to 6 2.6 percent of total in com e; th e share represented b y n et profits of business rose from 3 0 .9 to 3 2 .6 p ercent; n et interest decreased 1.9 to 0 .8 percen t; and rental incom e de creased from 5.6 to 4 .0 percent.9 F ro m 1939 to 1949, Puerto R ic o 's rate of grow th 1952 m i __________ 100. 0 100. 0 F o o d 1. . __ __________ __________ Housing____________ _____ __ __________ Housefurnishings______ __ __ __________ Clothing_____________________ __________ Medical c a r e . _____ _______ __________ Other_______ ________________ __________ 51. 5 9. 3 5. 9 13.0 2. 2 18. 1 __ _ island as a whole. from Percentage distribution of expenditures in— All expenditures. __ 1941 and 1953) has been increasing at a sligh tly m ore rapid rate than per capita incom e for the in per capita incom e w as greater than a n y o th er W estern H em isphere coun try for which com par i Includes alcoholic beverages. Source: See footnote 7. 58. 10. 2. 8. 5. 16. 0 2 4 3 1 0 able data are available. A s m easured in constan t prices, the per capita incom e o f Puerto R ico rose 8 1953 expenditure data are not yet available. 9 1943-44 figures are from the 1951-52 Statistical Yearbook of Puerto Rico, Puerto Rico Planning Board, Bureau of Economic Statistics; 1953-54 from N et Income and Gross Product, 1950-54 (also published b y the Planning Board) and unpublished Planning Board data. 7 Per capita gross national product 0in 1952 prices) by 67 percent during this 10-year period, as com pared w ith 23 percent in C u b a, 37 percent in the continental U n ited States, 4 8 percent in C an ada, and 52 percent in M e x ic o .10 Com parison W ith L atin A m erican Countries. G reat as P uerto R ic o ’s recent econom ic im provem en ts h ave been, the average incom e and standard of living on the island are still considerably lower th an those on the m ain land. In 1952, M issis sippi’s per capita incom e o f $ 8 2 6 — lower than th at o f an y other S tate— was still abou t twice as large as P uerto R ic o ’s per capita incom e. Argentina. _ ______ P u erto R i c o ________ Venezuela. ______ Cuba_______ ______ Panama. _ .______ ______ Uruguay. Chile_______ ______ Brazil_____ ______ Colombia._ _______ Costa Rica ______ Mexico____________ (which is alw ays $469. T h is w as greater to than the individuals) greater than average of am oun ted to in A m erican country except A rgen tin a. Dominican Republic Guatemala. ______ Nicaragua__ ______ El Salvador _______ Paraguay. _ _______ Honduras___ ______ Peru________ ______ Bolivia______ ______ Ecuador____ ______ Haiti______________ 469 457 454 382 382 335 278 231 203 199 $189 182 168 167 166 134 118 109 93 62 H* Jfc He He He In 1952, Puerto R ico has com e a lon g w a y in am eliorat Puerto R ic o ’s per capita gross n ational product incom e p ay m en ts $688 Source: Report on Economic Situation in Latin America, Foreign Opera tions Administration, Office of Research, Statistics and Reports, August 1954, table 1 (p. 89). H ow ever, in com parison w ith L a tin A m erican countries, Puerto R ico fares quite w ell. Per capita gross national product (in 1962 prices) an y L a tin (See accom ing the p o v e rty found am ong its people in earlier years. I t still has a long w a y to go before its standard of living can com pare w ith th a t on the m ain land. B u t the direction and the m agnitu de of its rate of econom ic grow th are encouraging. pan yin g tabulation .) C ontinued advance at its recent rapid rate, if it can be sustained, points tow ard a dyn am ic, fruit io Statistics of National Income and Expenditure, United Nations, N ew York C ity, Statistical Papers, Series H , N o . 7, March 1955, table 2. “ The history. C o m m o n w ea lth o f Puerto ful, and prosperous future. R ico is unique in A m erican I t has been called ‘ a new kind of sta te .’ political T h e C o m m on w ealth is n o t a colony, nor a dom inion as th at term is understood in the B ritish C o m m on w ealth , nor a separate, independent nation . N o r is it a ‘ com m on w ealth ’ in the sense th a t the Philippines once w as, nor a m em b er state o f the U n io n , nor an ‘incorporated territory’ as m o st of the States o f the U n io n once were. I t has p ractically the sam e a u ton om y in local affairs as a S tate of the U n io n ; the Federal G o v ern m en t has in Puerto R ico the sam e au th ority as in a S tate of the U n ion , b u t Puerto R ico does n o t contribute except v ery lim ited ly to the U . S. T reasu ry and it does n o t h ave v otin g representation in Congress. T h e overw helm ing m a jo rity of Puerto R ican s feels th a t the C o m m o n w ea lth is adm irably suited to their needs a t the present tim e, b u t th ey are w o n t to rest assured also th at, h avin g been established under an agreem ent w ith Congress, its federal relations m a y also be altered b y agreem ent w ith C on gress.” Puerto Rico, a handbook published by the Office of the Commonwealth of Puerto Rico, Washington (p. 21). PUERTO RICO m atic increase in increase the use of airplanes, m igratory flow sharply. helped The net m o v em en t in the postw ar years has been as follow s: Migration to the Mainland C the la r e n c e Se n i o r N um ber o f migrants N um ber o f migrants 39,900 24,600 32,800 25,700 34, 700 1951_______ _______ 52,900 1952______________59, 100 1953______________69, 100 1954_______........ . 21,500 1946_______ ______ 1947_______ ______ 1948_____________ 1949_____________ 1950_____________ T w o stream s of m igration flow from the islan d; they differ significantly in origin, destination, and length of sta y . O ne flows ou t in the spring and back in the fa ll; the other flows out and rem ains perm an en tly. T h e a ir pl an e has, in effect, drawn the island occupied b y the C om m on w ealth of Puerto R ico close to the continental U n ited States. T h e first consists o f fa rm w orkers; the second of city people. The C om m o n w e a lth ^ labor force has n ow becom e part of the labor force of the m ain land. O ne is fairly h ighly organ ized; the other, spontaneous. F a rm L a b o r M ig r a tio n Puerto R ican s continue to m o v e to and from their hom eland as T h e Puerto R ican sugarcane season lasts from jo b opportunities expand and contract, ju st as do late fall to late spring; thus workers are available m illions o f their fellow A m erican citizens. when needed on the farm s of the continent. H ig h em p lo ym en t encouraged alm ost 16 m illion M ost o f them go to the U n ited S tates under a work persons to m o v e their hom es across S tate bou n d agreem ent form u lated aries in the period between A pril 1950 and A pril R ic o ’s labor authorities and return at the end of 1953, including 1 4 8 ,0 0 0 Puerto R ican s who m o v ed the continental farm season. from the island to the continent in this period. areas of agricultural labor shortages in cooperation T h e Puerto R ican m igratory flow is extrem ely sensitive to business conditions. In the m a jo r and enforced by Puerto T h e y are placed in with the F ed eral-S tate F arm P lacem en t Service. T h e Puerto R ican D e p a rtm e n t of L ab o r, through depression years of 1 9 0 7 -0 8 , 1 9 2 0 -2 1 , and in the the work agreem ent which m u st be signed b y farm decade of the 1 9 3 0 ’s, m ore Puerto R ican s returned operators, to the island than m o v ed aw ay. abuses which h ave som etim es characterized labor The 1 9 4 8 -4 9 reduction in jo b s resulted in a 22-percent drop in strives to protect the workers from relations in agriculture.1 m igration from the islan d; econom ic conditions in T h e work agreem ent provides th at the local late 1953 and 1954 caused an over-th e-year drop prevailing rate of wages shall be paid, and th at the continent o f 6 8.8 percent. the worker shall be guaranteed 160 hours of w ork Increased dem an d for labor began to reflect itself or wages per m o n th and acceptable housing, rent in m igration to in an upturn in Puerto R ican m igration during the free. third quarter of 1 9 5 5 ; present indications are th at m e n ’s com pensation for the m igrant, despite the the m igration flow for the entire year will probab ly omission of farm be 30 percent m ore than for 1954. pensation laws. T h e Puerto R ican m igration is sm all com pared I t requires the em ployer to provide w ork labor from m o st S ta te com I t also requires the em ployer to post a perform ance bond and to open his books to either w ith the im m igration w aves of the p ast from the agents of the C o m m o n w ea lth ’s D ep a rtm en t of other countries to the U n ited States, or w ith the L ab or. m igration from one labor m ark et to another within with offices in N e w Y o r k and C hicago, investigates the U n ited States in recent years. com plaints, secures enforcem ent, and helps both T h e m igratory flow to the continent from Puerto R ico averaged abou t 4 ,0 0 0 a year from 1908 to 1945. “ F u ll em p lo y m en t” follow ing W o r ld W a r I I , plus a dra- 8 The D e p a r tm e n t’s M ig ra tio n D ivision , 1 See Migratory Labor in American Agriculture, Report of the President’s Commission on Migratory Labor (Superintendent of Documents, W ash ington, 1951), a summary of which appeared in the M onthly Labor Review, June 1951 (p. 691). 9 em ployers and workers to solve their p roblem s.2 A form er chairm an o f the U n ited States Senate Continued high levels of em p loym en t on the m ainland u n d ou b ted ly will lead to another u p S u bcom m ittee on A gricultural L a b o r has praised swing in the use of Puerto R ican farm workers, the program 3 as unique in the field and tending who provide a h ighly satisfactory answer to the problem s o f seasonal farm labor. to im prove labor standards. T h e farm -labor stream increased each year from M o s t of those who com e to the continent h ave w orked in the the start of the program in 1947, until som e 15,000 sugarcane fields during the winter m on th s. were covered b y ing a m achete to cu t the h ea v y stalks of cane in the w ork agreem ent in 1953. Sw ing D u rin g the 1954 crop season, the num ber fell b y the tropical sun is hard, grueling w ork. abour one-third. labor tasks on continental farm s are usually less In 1955, there w as a slight rise. Several thousand other workers, during their first exacting. season or tw o, established their ow n w ork relations accepted as m aking an outstanding contribution with em ployers and now return each sum m er One obstacle to the program is the private labor who tries to Puerto R ican worker recruit Puerto R ican is w idely throughout the M id d le A tla n tic and N e w E n gland States, where he is best know n. under their own arrangem ents. contractor The “ S to o p ” Increasingly he is becom ing a part of the E a st C o a st m igratory farm -labor stream .4 workers for m ainland em ployers who will n ot p ay prevailing w ages or assum e the responsibilities required by the w ork agreem ent. E ig h t C ity T h e m igrants from the cities of the island to the agents were jailed in 1954 for illegal recruiting of workers U n ited for transportation to the M ig r a n ts such continental States w ithou t h avin g obtained U n ited cities of the m a in la n d ,5 are seeking a new environ m en t in which to settle. T h ese m igrants in the S ta tes E m p lo y m e n t Service clearance and having decade 1 9 4 5 -5 4 num bered 3 8 0 ,0 0 0 . established this to the satisfaction of the Puerto in urban service, trade, and industrial ce n ter s;6 R ico E m p lo y m e n t Service. abou t 7 5 -8 0 percent now live in N e w Y o r k . 1950 2 Usually, any sizable group of Puerto Rican farmworkers contains a sprinkling of bilingual persons who help introduce the others to new work methods, etc. Their efforts are supplemented by the Migration Division staff, which also furnishes sample menus so that Puerto Rican style food m ay occasionally be served if the employer furnishes meals. 3 For description of the program, see Migratory Labor, Hearings before the Subcommittee on Labor and Labor-Management Relations (82d Cong., 2d sess.), Part 1 , 1952 (pp. 793-811); see also, P. A . Pagan de Colon, Farm Labor Program in Puerto Rico (in Employment Security Review, U . S. Depart ment of Labor, Bureau of Em ploym ent Security, March 1952, pp. 23-26); and How T o Hire Agricultural Workers From Puerto Rico, New York office of Puerto Rico Department of Labor, 1955. * See Florida Study and Puerto Rican Farm Workers in the M iddle A t lantic States published by the U . S. Department of Labor, Bureau of Employment Security, in M a y 1954 and November 1954, respectively. & For characteristics of Puerto Ricans in 2 major “ core areas” in New York City in 1948, see C . Wright M ills, Clarence Senior, and Rose Kohn Goldsen, The Puerto Rican Journey, New York, Harper & Brothers, 1950. See also Puerto Ricans in Philadelphia, Philadelphia, Institute for Research in Human Relations, April 1954. Data on labor market participation, occu pational trends, health, housing, education, and so forth, are contained in Puerto Rican Population of New York City, N ew York, Columbia Uni versity, Bureau of Applied Social Research, 1954. 6 The 5 major types of industry in which Puerto Ricans in the United States are found are: needle trades; radio, television, and other light assembly and manufacturing; food processing; hotel and restaurant services; and building trades. A majority of the workers are in manual occupations, principally as operatives. About 18 percent of the men and 12 percent of the women are in white-collar occupations. 7 For a comparison of New York City and non-New York Puerto Ricans, first- and second-generation, see Puerto Ricans in the Continental United States, U . S. Department of Commerce, 1950 Census of Population, Special Report P -E N o. 3 D , 1953. census showed 2 4 6 ,3 0 0 T h e y settle The first- and second- generation Puerto R ican s there. T h e H e a lth and W elfa re Council of N e w Y o r k C ity estim ated th at on A p ril 1, 1952, the figure was 3 2 1 ,0 0 0 . The num ber in 1954 was som ewhere betw een 4 5 0 ,0 0 0 and 5 0 0 ,0 0 0 . T h e tw o m a jo r areas of first settle m en t and heaviest concentration are E a st H arlem and the M orrisania area of the B ron x. M an h attan , w ith 12 im p ortan t nuclei, contains abou t 50 percent o f the c ity ’s to ta l; the B ron x, w ith 2 chief areas in addition to M orrisania, has around 30 percent; and B roo k ly n , w ith w idely dispersed P uerto R ican a m u ch m ore popu lation , has abou t 18 percent. T h ose Puerto R ican s w h o h ave been in N e w Y o r k C ity longer and who h ave clim bed the occu pational ladder h ave m oved to the less crowded areas of the city. T h e y were found b y the 1950 census enum erators in all b u t 1 of the c ity ’s 352 health areas.7 Puerto R ican s and their children are also found throughout the suburbs of W e s t chester, N assa u , and Suffolk C ounties in N ew Y o r k and all along the w est ban k of the H u d son . 10 D is p e r s io n o f th e m ainder returned to form er hom es in Puerto R ico M ig r a n ts where O utside of N e w Y o r k , m igrants from Puerto relatives, friends, R ico are found in such industrial areas as B ridge period of u n em ploym en t. port, interstate N ew ark, D o v e r, Jersey T ren ton , C ity , C a m d en , Passaic, P aterson, Philadelphia, A llen and a m ore fam iliar environm ent w ould help to tide them over their (T h e 1954 increases in u nem ploym ent insurance claim s in southern States b y workers w ho returned h om e tow n, B eth leh em , P ittsburgh , E rie, T r o y , R o c h after losing their jo b s in northern States point up ester, Schenectady, B u ffalo, Y ou n gsto w n (O hio), one of num erous parallels betw een the reactions C leveland, L orain, A sh ta b u la , D etro it, G a ry , C hicago, Au rora (111.), E lgin , Joliet, W a u k eg an , of Puerto R ican s and those of other internal m igrants in the U n ited S ta tes.) S avan na (111.), M ilw au k ee, and in cities in U ta h , A rizon a, and California. The second largest T h e C o m m o n w e a lth M ig r a tio n P ro g ra m grouping of Puerto R ican com m unities is found in and around C hicago. T h e tendency toward T h e C om m on w ealth of Puerto R ico, as a m a tte r the o f public p olicy, usually neither encourages nor T h e Puerto R ican -b o rn population of areas ou t island’s econom ic developm en t has reached a point dispersion is encouraged and facilitated b y discourages m igration. C om m on w ealth . I t realizes th at until the C ity increased at a rate m ore where it can offer job opportunities and econom ic rapid than th at of the m etropolis from 1940 to security to its workers, am bitious citizens, w ho can, 1953. will side N e w 442 Y ork B etw een 1940 and 1950, the increase was percent outside the city and 306 percent search w ith in ; the absolute increase outside N e w Y o r k adjust m ore was only around 150 ,0 0 0 . m u n ity. D ispersion began even before the U n ited S tates elsewhere. Therefore, the G o vern m en t strives to help those who decide to leave to quickly in their new hom e com O n the other hand, w henever increasing num bers of Puerto R ican s lose their job s in the took over the island in 1898, so th at b y the 1910 States, as they did in the late sum m er of 1953, census, Puerto R ican s were found livin g in 39 prospective m igrants are urged to be certain th ey States. h ave jo b s before going to the continent. T e n years later, th ey were living in 45 S ta te s; b y 1930, in all 48 S tates. T h en , in the 15 years which follow ed, the depression and trans The C om m o n w ea lth ’s program of education and orientation of the m igrant in his new hom e is portation difficulties during W o r ld W a r I I slowed adm inistered b y its D e p a rtm e n t of L a b o r. dow n b oth the num ber m igrating and their spread chief agencies engaged in this program are the The A fte r the war, m igration Puerto R ico E m p lo y m e n t Service, w hich is affi picked up again and b y 1950, 200 or m ore Puerto liated w ith the U n ited States E m p lo y m e n t S erv R ican s were living in each of 26 States, whereas ice, and the M ig ra tio n D ivision , which has a n a to new com m unities.8 in 1940 th at m a n y were found in on ly 10 States. E stim a tes b y the M ig ra tio n D ivision , D e p a r t m en t of L ab o r, show th at the dispersion process continued to gather m o m en tu m until the fall of 1953. The Puerto creased betw een R ican -born 1950 and population early 1953 by in 8 3 .8 percent outside of N e w Y o r k C ity , com pared w ith an increase of only 4 8 .8 percent w ithin th at city. T h e 1 9 5 3 -5 4 contraction in em p loym en t oppor tional field force, as well as the offices in C h icago and N e w Y o r k C ity already m entioned. A m igran t’s education before he leaves h om e. and orientation begin T h e spontaneous nature of m o st of the m igration requires a varied ap proach. M o v ie s, newsreels, the radio, new spaper stories, leaflets and p am ph lets, and personal inter views in the eight local offices of the Puerto R ic o E m p lo y m e n t Service— all are used to describe tunities was a devastatin g blow to m a n y of the situations likely to be encountered in the conti recently established nental U n ited States and suggest w ays to m eet Puerto R ican com m unities throughout the industrialized areas of the conti them . T h e Puerto R ican w as am ong the last to T h e m igrants encounter few problem s u n iqu ely be hired, and, therefore, am ong the first to be characteristic o f the Puerto R ican s as su ch ; th e y fired. cope w ith the sam e difficulties found b y other * nent. O ne prosperous m idwestern Puerto R ican co m m u n ity of around 3 ,0 0 0 shrank to abou t 900 in approxim ately 6 m on th s. M ost of the re * Clarence Senior, Patterns of Puerto Rican Dispersion in the Continental United States (in Social Problems, Brooklyn, N . Y ., October 1954, pp. 93-99). 11 w orking-class groups, b oth p ast and present, practices, u nem p loym en t insurance, and so forth . who m o v e in search of better econom ic oppor A s one exam ple, the Puerto R ica n horror of “ going tunities, particularly if th ey also have differences on relief” is so strong and widespread th at a great in language, color, dress, or custom s. deal of tim e and energy is spent during slack em L anguage presents the greatest single difficulty plo y m en t periods on explaining th at u n em p loy for the Puerto R ic a n ; this was also the case for m en t insurance is not relief and overcom ing the m o st o f the 4 0 m illion im m igrants who cam e to resistance of the worker who has lost his jo b to our coun try in the p ast. registering for his insurance. Since know ledge of the E nglish language is the m o st im p o rta n t single key T h e N e w Y o r k C ity Com m issioner of W elfa re has repeatedly stated to success in a m igran t’s new h om e, its use is en th at 94 or 95 ou t of every 100 N e w Y o rk -P u e rto couraged b y the G o vern m en t in m a n y w ays. The R ican s are self-supporting and th at those Puerto for R ican s who are forced onto relief get off the rolls Puerto R ico D ep a rtm en t of E d u catio n , exam ple, has greatly increased its E n glish classes for adults during the last few years. In these quickly. T h e D ivision m aintains social workers to help classes, m aterials pertinent to life on the continent the Puerto are utilized. w hich can best serve their particular needs in T h e o n e-ten th of the Puerto R ican m igrants w ho are nonwhites h ave their problem s com pounded b y color prejudices, and m a n y in the white m a jo rity suffer b y extension o f this attitude. Difficulties environm ent of a dju stm en t parallel to a to a m etropolitan considerable degree R ican s use effectively the agencies problem s of housing, health, conflicts w ith police, vocation al rehabilitation, child care, juvenile delinquency, m en tal health, transportation, wage claim s, burials, and fa m ily relationships. The social workers also provide inform ation on the legal and cu stom ary responsibilities of landlords those of the K e n tu c k y “ h illbilly” described so well and tenants, and the right of citizens to fair treat b y W a rren T h o m p so n . m en t as well as the m eans of securing it in their T h e fa m ily disintegration under the clash of cultures differs in no essential new com m unities. from the sam e process am ong im m igran t families L ocal offices o f the S tate em p loym en t services know n to social workers for generations and set have been m o st helpful in interpreting the new forth m o v in g ly in Oscar H a n d lin ’s Pulitzer prize com ers to the co m m u n ity , in addition w inning history, T h e U p ro o ted .9 original A 64-p age guide to N e w Y o r k C ity , in Spanish, efforts exploitative in jo b placem ent conditions. They to their under h ave n on - som etim es has helped thousands to find their w a y m ore easily, served as the focal point for the organization o f an n ot on ly on the c ity ’s subw ays b u t through its interagency com m ittee which helps to speed up v a st netw ork of civic, social, labor, religious, and the adju stm en t process of these new entrants to legal institutions. the local labor m a rk et.10 A d a p ta tio n s of the guide have T h is process is alw ays been issued through cooperation of the M igration one of m u ta l interaction if it is to accom plish its D ivision and local com m ittees in several cities. purpose of orienting the new com er and turning a The M ig ra tio n D iv isio n ’s em p loym en t sec tions in N e w Y o r k and Chicago supplem ent the stranger into a neighbor. T here has to be understanding, cooperation, and accom m odation em on the part o f b oth the m igrant and the resident plo y m en t interviewers, w ho usually cannot speak population if full econom ic, social, and political or understand Spanish, w elcom e the assistance of participation is to be achieved. the D iv isio n ’s offices. D ivision works w ith both m igrants and local com public em p loym en t Spanish-speaking services. C on tin en tal O rientation is given the m igrant on m any su bjects, including Federal and S tate m in im u m -w age and m axim um -hou rs regulations, fair em p loym en t • • Published by Little, Brown & Co., Boston, 1952. See also Clarence Senior, Migrants, People— N ot Problems (in Transactions of the 50th anni versary meeting of the National Tuberculosis Association, New York, pp. 371-375); Donald R . Taft and Richard Robbins, International Migrations, New York, Ronald Press, 1955; and Warren Thompson, Population Prob lems, New York, M cGraw-Hill Publishing Co., 1953 (pp. 303-313). See In-Migration of Puerto Rican Workers, Milwaukee, Wisconsin State Employment Service, 1952. T h e M igration m u n ity leadership in all the fields m entioned above in w h atever w ays the situation indicates. C o m m u n ity organizations and educational spe cialists add their efforts in aiding the m igrant, the em ployers, and co m m u n ity institutions. lations of educational m aterial are T ran s m ade for public and private agencies; e. g ., sa fety m anuals for a fou ndry, suggested program s for paren tteachers’ associations, exhortations to attend 12 E nglish and vocation al classes in evening schools, particularly since 10 years o f depression plus 5 educational m aterial for unions, and instructions years on how to vote. needed educational and recreational facilities, and program of T h e M ig ra tio n D iv isio n ’s own education and orientation for the of are where another, M e m b ers of the facilities do established n ot yet exist. com m u n ity are left m any a shortage of housing. m igrant and his fa m ily enters only those fields com m u n ity war being overcom e as local com m unities w ithou t T h ese frictions can and in one co m m u n ity institutions co m ba t tendencies “ to hate foreigners.” after p eop le’s T h e y seek to speeches, conferences, m ovies, work w ith the new com ers as fellow citizens, w ho exhibits, pam ph lets, leaflets, radio, newspapers, are experiencing in their lifetim e w h at m o st o f our reached through and m agazines in efforts to build up an under ancestors underwent in their search for a place standing where th ey could contribute their share to the of the m igrant, his background, his m otivations, and his contributions to the area’s com m on welfare. T h e Puerto R ican new com er econom y. him self, by T h e m y th s wdiich alw ays grow up abou t new inspired the attention com ers in a co m m u n ity are in vestigated b y the B o o tstr a p ,” 11 is D ivision cooperation w ith his neighbors. furnished and corrections to interested of m isstatem en ts are individuals organizing for self-help and groups. T here are still m a n y sources of friction, how ever, 11 For discussion, see p. 3. “ T h e needlew ork in dustry in Puerto R ico had its inception in the 16th century. N eedlew ork occupied a prom inent place am ong the crafts intro duced into the island in the early days of colonization. D u e to its a dap tability to hom e w ork and its potentialities as a m edium of self-expression and as a m eans of adornm ent for w om en , em broidered apparel and decorative articles becam e v ery m u ch in evidence in better h om es throughout the island. w ork becam e increasingly popular as a p astim e. N eed le T h is tendency, encouraged b y the custom prohibiting the frequent appearance of w om en in public, in creased during the 300 years before Puerto R ico influence. T h u s needlew ork becam e an art am ong cam e under w om en of A m erican w ell-to-d o fam ilies who had received instructions in m usic, art, and literature, and who had a great am ou n t of leisure tim e in which to becom e skillful. In turn, the servants of these w om en learned to do the finest types of needlew ork.” Puerto Rico: The Needlework Industry, U. S. Department of Labor, Wage and Hour Division, 1940 (p. 1). w hich his C om m on w ealth is attractin g through “ O peration and PUERTO RICO M oreov er, the C o m m o n w ea lth of Puerto R ico is su bject to a n um ber of Federal law s governing Labor Unions and Labor Relations labor. The H a rtley ) N a tio n a l A ct is one Labor of R elation s these. U n d er (T a ft recent decisions, the N a tio n a l L a b o r R elation s B oard has asserted jurisdiction in Puerto R ico on the same basis as in the 48 S tates. F orm erly, the B oard had asserted jurisdiction over all enterprises in Puerto F e r n a n d o S i e r r a -B e r d e c ia R ico as in the D istrict o f C olu m b ia. Since agricultural workers were excluded from the application o f the W a g n e r A c t and its suc cessor, the (T a ft-H a r tle y A c t ), large num bers o f Puerto R ican workers were denied protection o f P uerto R icans firm ly and unqualifiedly believe th a t collective bargaining offers the best know n solution to the disputes o f free labor and private enterprise. becam e a T h is belief is so deep-seated cardinal point in the th at it constitution adopted b y the Puerto R ican people and approved by the U n ited States C ongress in J uly 1952. A rticle I I , section 17, of the constitution declares: Persons employed by private businesses, enterprises, and individual employers and by agencies or instrumen talities of the government operating as private businesses or enterprises, shall have the right to organize and to bargain collectively with their employers through repre sentatives of their own free choosing in order to promote their welfare. In addition, the Puerto R ican C on stitu tion the law . A s a rem edy, the Puerto R ican L egisla ture in 1945 enacted the Puerto R ico L a b o r R e lations A c t which specifically covers agricultural em ployees, as well as em ployees of govern m ent corporations. T h e Puerto R ican act, generally speaking, is com parable to the Federal la w ; it n ot on ly contains provisions to prevent com m ission o f specified unfair labor practices, b u t also m achinery for resolving representation disputes am ong labor unions. M o reo v er, it m akes provision for enforc ing arbitration awards and collective bargaining contracts. T h e Puerto R ican L a b o r R elation s B o a rd , which is responsible for enforcing the L a b o r R elation s A ct, is often confronted w ith the perplexing problem o f determ ining the appropriate unit for further guarantees to labor the exercise o f those collective bargaining purposes. rights necessary to, and inherent in, free collective of this problem in the field of seasonal agriculture bargaining. com prise a n ovel field of decision for w hich n o T h u s, section 18 o f the constitution sta te s : T h e ram ifications precedents are to be found in Federal activ ity . In order to assure their right to organize and to bargain collectively, persons employed by private businesses, enterprises, and individual employers and by agencies or instrumentalities of the government operating as private businesses or enterprises, in their direct relations with their own employers shall have the right to strike, to picket, and to engage in other legal concerted activities. Nothing herein contained shall impair the authority of the Legislative Assembly to enact laws to deal with grave emergencies that clearly imperil the public health or safety or essential public services. U n io n O r g a n iz a tio n a n d M e m b e r s h ip T h e disposition for labor organization am ong Puerto R ican workers is historical and dates back even before the A m erican occupation o f Puerto R ico in 1898. T h e Sam uel G om pers o f the Puerto R ican labor m o v em en t was Santiago Iglesias, w ho in 1896 began labor organization and education on the island. F o r this “ a gita tio n ,” he w as arrested A dh ering to this general principle, the Puerto on several occasions; at the m o m en t o f Am erican R ican Legislature has enacted a great variety of occupation o f the island in 1898, Iglesias was serv social ing one o f his several jail sentences. and labor legislation.1 Som e of this H e escaped legislation parallels laws which exist in various and joined forces w ith General B rook e, the A m eri S ta te s; other legislation is unique and was designed can general w ho led the m arch on San J u a n fin to m eet the special problem s b oth o f the com m u the n ity and o f the dom inance of agriculture in the overthrow o f the Spanish regim e, Iglesias took econom y. Spanish A m erican W ar. F ollow in g 1 See article on p. 17. 13 the 14 an increasingly active part in b oth the labor m o v e m en t and the political life of Puerto R ico . He The structure of the labor organizations in Puerto R ico does n ot reveal the predilection o f the founded the first w orkers’ organization, the Free rank and file for organization. Federation of W orkers of Puerto R ico , and was m ore h ighly responsive to the appeals of organized designated as general organizer b y the A m erican labor than similar workers on the m ainland. Federation of L a b o r. is estim ated th at over half of the m aintenance and H is labor group becam e the A F L S tate organization in Puerto R ico. A rou n d 1940, the General production workers in Puerto Confederation of T h e workers are R ico and It three- fourths of the 150,0 0 0 w age and salary workers in W o rk ers of Puerto R ico (G G T ) w as organized and agriculture are organized and covered b y collective in bargaining agreem ents.2 1949 becam e affiliated w ith the Congress of Industrial Organizations. T h e sm aller proportion of organized workers in In addition to these two affiliated organizations, there are at present m any independent labor in dustry is due to the fa ct th at the islan d ’s in dustrialization p r o g r a m 3 is fairly recent. F or groups w hich, for the m o st part, are organized m a n y years, agriculture w as the a lm ost exclusive o n ly on a local basis. source o f em p loym en t. pendent O ne exception is the inde A ccordin gly, in Puerto In ternation al L on gsh orem en ’s A ssocia R ico, the earliest endeavors to organize took place tion ( I L A ) , w hich also represents other groups o f in th at area and, as these organizational cam workers. T h is local w as one of the groups in the paigns were largely successful, acceptance o f the original I L A when it w as affiliated w ith the A F L principles of trade unionism spread am ong the in the U n ite d S tates. agricultural workers. A t the tim e of the expulsion o f the I L A from the A F L and the creation of a new F urth er, the interest of P uerto R ican workers A F L union, later designated as the International in organization is found in the high percentage of Broth erh ood workers who v o te in the elections conducted b y of Lon gshorem en, a sim ilar split took place in Puerto R ico, so th at b oth an A F L the N L R B : according to the m o st recent figures, lo n gsh orem en ’s affiliate and an I L A local exist on 73 percent of the workers participate in the elec the island. The AFL L ongshorem en w on the m o s t recent election conducted b y the N L R B , on tions. In 95 percent of the cases, a collective bargaining agent is selected. Jan u ary 2 6 , 1954, to establish representation rights U n io n o n the Puerto R ico docks. S tru c tu re a n d C o lle c tiv e A g r e e m e n ts P redom in an t am ong the independent labor or gan ization s on the island are: U n i6n Obreros U n id os de L o iz a ; U n i6n de T rabajadores A gricolas S tru cturally, the P uerto R ican are som ew h at loosely organized. labor unions T h e relatively e In dustriales de Y a b u c o a ; U n ion de T rabajadores elaborate internal structure, of continental trade Agricolas de B a rcelo n eta ; U n io n de T rabajadores unions is n o t to be found in the trade unions M etalu rgicos de P o n ce; U n i6n de T rabajadores de of the C o m m o n w ea lth . F acto ria y Ferrocarril de F a ja r d o ; U n i6n de T ra b a stitutions tend to be sim ple, covering only the m o st ja d o res del T ran sporte de Puerto R ico y R a m a s A n e x a s; U n i6n Obreros U n id o s de F errov la s; U n id a d General de T rabajad ores de Puerto R ico ( U G T ) ; Confederacidn G eneral de T rabajad ores -de Puerto R ico (A u te n tic a ); F ederaci6n L ibre de los T rabajadores Organizacidn (O O I). de Obrera Puerto Insular R ico de (F L T ); Puerto and R ico T h e existence of the num erous independ e n t labor groups m entioned above is the result, in p a r t, of local organization and o f splitting off from existing labor groups. U n fo rtu n a tely , this di vision in the house o f labor has n ot m ade for labor sta b ility . T h is fractionalization and the accom pan yin g changes o f allegiance are characteristic of a y ou th fu l labor m o v em en t. obvious m atters. T h eir bylaw s and con T h is loosely kn it organization is perhaps m o st graphically dem on strated b y the fa ct th a t until recently the P uerto R ican trade union m o v em e n t was largely financed on a v olu n teer, or “ pass the h a t ,” basis. A ssessm en t o f reg ular dues was the exception, rather than the general rule. T h is lack of assured financial su pport, o f course, m ea n t curtailed a ctiv ity — reflected in v olu n ta ry as contrasted w ith professional trade union officialdom — and a lack of sta b ility w hich such an inform al arrangem ent engenders. Since 1946, w hen a M a r c h 21 act (N o . 168) perm itted * 2 14 international unions with headquarters in the United States claimed 53,000 members in Puerto Rico in 1954. See Directory of National and International Labor Unions in the United States, 1955 (B L S Bull. 1185). * See article on p. 1. 15 dues checkoff, the trend has been tow ard regular conciliation and arbitration service 4 w ithin the D e dues; partm en t of L ab o r. to d ay , dues are collected in m any in I t s services are supplied on ly stances b y virtue o f checkoff provisions in union if volun tarily requested b y the parties to a dispute, contracts. although m a n y contracts provide specifically for I t is to be h oped th at this is a sy m p to m o f grow ing up and of a greater stab ility in the their use before resort to a strike. labor organizations. T h e use of the services offered, the grow ing T h e collective bargaining agreem ents in Puerto R ico are likewise of a less com plex nature than those on the continent. awareness o f h ow collective bargaining works, and the increasing n um ber o f labor agreem ents T h is is to be expected are evidence th at Puerto R ic o ’s approach to the in the light o f the less-experienced trade union problem o f lab or-m an agem en t accom m odation is officialdom , and to a certain degree, o f the absence correct. of the h ighly technical and com plicated problem s handled 611 cases in the fiscal year ending June which m ore advanced trade unionism and collec 30 , 1954. tive bargaining bring abou t. tary C IO h ave, from tim e to B o th the A F L and tim e, loaned skilled T h e conciliation and arbitration service O f these, 132 were su bm itted to v olu n arbitration upon request o f b oth parties. N o n e o f the arbitration awards required enforce personnel to their affiliates on the island, w ho m en t b y h ave O n ly 49 of the 611 cases reached the strike stage. introduced m any of the m ore collective bargaining provisions. standard Suprem e C o u rt of Puerto R ico . for T h is experience strongly indicates th at organized union security, dues checkoff, and arbitration are labor and in dustry h ave confidence b oth in the to be found to d a y in m o st P uerto R ican labor processes of collective bargaining and the benefits contracts. of conciliation and m ediation. In addition, the Provisions the Labor R elation s In stitu te o f the U n iv ersity of Puerto R ico has a ttem p ted to instruct b oth labor and m anagem ent L a b o r D is p u te s representatives n o t on ly in collective bargaining A s in the U n ited States, econom ic issues are the procedures, b u t in expressing accurately the sub m o st frequent cause o f labor disputes in Puerto stance o f a labor agreem ent, once reached. A ssociation s o f em ployers in Puerto R ico date b ack to 1909. T h e A ssociation of Sugar Producers R ico, b u t th ey h ave also arisen over lack o f recog nition, union security, refusal to bargain, contract o f Puerto R ico did n ot represent its m em bers in duration, collective bargaining until 1934, when the first solution o f disputes in volvin g a n y one o f these islandwide contract in the sugarcane in dustry w as issues brings greater understanding and increasing n egotiated know ledge o f industrial relations in a co m m u n ity . w ith the AFL Free Federation of the checkoff, and other issues. The T h is is later reflected in the collective bargaining W o rkers. agreem ents negotiated. A r b itr a t io n a n d L ab o r relations on the w aterfront are of great C o n c ilia t io n im portance to Puerto R ico. T h e statu s o f v o lu n ta ry arbitration in Puerto R ico is of considerable im portance. The firm prim arily upon m aritim e T h e island depen ds transportation for all exports and im ports, valued at $347 m illion and establishm ent o f the principle of collective b ar $532 m illion, respectively, in the year 1954. gaining a sense, a w aterfront strike can be m ore crippling and G overn m en t the in interest o f prom otin g the it Puerto result R ican from the to the island’s activities and econom y In than a conviction th at in collective bargaining is to be n aval blockade, for no ship is loaded or unloaded fou nd the quickest and happiest solution to in during dustrial disputes. affected n o t on ly b y w aterfront strikes on the O f course, collective bargaining alone is n ot sufficient in all cases. E d u cation , volu n ta ry arbitration, and m ediation are all equal ly im p ortan t facets o f the sam e p roblem . A cco rd in gly, the Puerto R ican Legislature established a a strike. M o reov er, R ico is island docks, b u t b y those in the States. T h e dispute betw een the A F L Longshorem en and the I L A (In d .) h ad repercussions in P u erta R ico , requiring a representation election. since in Puerto R ico the A F L 4 A mediation and conciliation service was established in 1942, and an arbitration section added in 1947. Since 1952, the service has been desig nated as the M ediation, Conciliation, and Arbitration Bureau. Puerto B u t, affiliate had th e upper h and, it gained control in the island lo n g before the I L A (In d .) w as certified as bargaining 16 agent in N e w Y o r k . F or this reason, bargaining w ith the shipping concerns in Puerto R ico (all betw een the union and the shipping com panies continued until Septem ber 3, when collective representing continental shipping firms) began in bargaining agreem ents were signed. early 1954, well ahead o f the N e w Y o r k n egoti m en t provided for a 10-cen t w age increase retro ations. It w as evident th at any agreem ent T h e settle active to January 1, 1954, and another 10-cen t reached in Puerto R ico on wages w ould affect increase to take effect in 1955. future negotiations in N e w Y o r k . m en ts issue was postpon ed, to be n egotiated later, T h e strike w hich began June 25 , 1954, on Puerto T h e bulk ship if and when such shipm ents actu ally begin and to R ican docks had disastrous effects on the island’s be arbitrated if necessary. econ om y. dock facilities were returned to their owners. T h e issues in volved were w age increases O n Septem ber 8, all The and changes in w orking conditions, and a dem and G overnor has appointed a com m ission to stu d y by m eans of solving w aterfront disputes w ith ou t re the shipping concerns th at they be free to m echanize their operations, especially with bulk sugar shipm ents. course to crippling strikes. T h e union ’s first dem and for an increase o f 25 cents an hour was rejected. F u tu re C o u rs e Bargaining continued for m ore than a m on th w ith no settlem en t in sight. m onw ealth cussions. B o th Federal and C o m T hrou gh education, a ttem p ts will continue, as in conciliators participated in the dis the p ast, to inculcate on the island the know ledge N o special procedures to deal w ith this and “ k n o w -h o w ” o f the best practices o f free situation could be invoked b y the C om m on w ealth collective since labor relations on the island’s w aterfront clearly expressed, will give rise to greater sta b ility are regulated b y the T a ft-H a r tle y A c t . in the trade union m o v em en t T h e only recourse rem aining w as to expropriate the w ater bargaining. Firm er contracts, and m ore educational resources will continue to be devoted to this end. fron t facilities after the Legislature decreed a state Sim ilarly, m ore form al organization o f the trade o f em ergency. unions A s the T a ft-H a r tle y A c t does n ot C o m m o n w ea lth will certainly prom ote this general objective, tow ard w hich b o th the D e p a rt G o v ern m en t could then directly m en t of L ab o r and the U n iv ersity o f Puerto R ico or political subdivisions, are rendering aid. intervene. An them selves the cover govern m ent act authorizing expropriation of all dock A b o v e all, the concept in Puerto R ico of a free facilities was signed b y the G overnor on July 25. trade union m o v em en t carries w ith it the conno A m o n g other things, this em ergency act, effective tation through em ployers or govern m ent. January 31, 1955, provided th at the of freedom from interference by either T o be tru ly effective, G o v ern m en t could negotiate a collective bargain the grow th m u st be internal and unrestricted. ing agreem ent w ith the union for the duration of T o those critics who are intolerant of the tim e the em ergency. necessary O n July 28 , the expropriation took place and the dockhands returned to w ork. Bargaining to learn these lessons, we W e are now b u yin g U . S. goods at a h alf-billion dollars a n n u ally .” Operation Bootstrap— The Industrial Revolution of Puerto Rico, speech by Teodoro Moscoso, Administrator, Economic Development Administration, Common wealth of Puerto Rico. { I n Vital Speeches of the Day, New York, August 15, 1955, p. 1429.) on ly the problem of free m en living in a free so ciety ?” “ Puerto R ico is in fact the biggest per capita custom er o f the U n ited States in the w hole w orld! can say— “ does anyone know any b etter solution for PUERTO RICO m inor fem ales em ployed in industrial, com m ercial, or public-service occupations; and a 1923 Labor Laws and or m echanics in public works built b y the G o v ern m en t, either through contract or b y force account. Their Enforcement H o u rs o f W o rk Since A u g u st 7, JoAQufN G all a r t a c t5 fixed a m in im u m salary o f $1 per d ay for laborers -M e n d Ia 1935, the legal w orkday in Puerto R ico has been lim ited to 8 hours.6 Any em ployer operating a business for profit and hiring a worker in any occupation for m ore than 9 hours in a n y natural d ay w ould have to p a y for the ninth hour w orked at double rates and w ould be gu ilty of a m isdem eanor if the worker had been engaged P uerto R ico has to d ay a b o d y o f laws of very beyon d the ninth hour. broad social scope for the protection of workers. workers h avin g a legal w ork day of 8 hours were T hese laws com pare advan tageously w ith statutes laborers and m echanics em ployed b y the G o v ern in force in m a n y o f the 4 8 States of the U n ion, m en t on public w orks.78 A lask a, and H aw aii. and w om en . Prior to 1935, the only T h e y apply equally to m en Considering the 1935 act (N o . 4 9) n o t as a w age Progress b y Puerto R ico in labor law b u t rather as a penal act, the Suprem e C ou rt legislation during the last half century has been o f Puerto rem arkable. stated D u rin g the last decade, the G o vern m e n t s principal em phasis has been on raising the R ico, th at, in except Cardona v . where District prevented C ourt? through collective bargaining agreem ents, starvation wages econom ic status of the workers and im proving their could legally be paid in Puerto R ico under th a t living and w orking conditions. statu te. T h is has been U n d er the Cardona case, an em ployee expressed in a program of positive action extending could w ork 12 hours per day for a lon g period, b u t to all fields of hum an endeavor. if his em ployer could prove th at his agreed rate of T h is article sum m arizes on ly those labor law s p a y was such th at the a m ou n t he received in in force in the C om m on w ealth of Puerto R ico 1 which are of chief im portance to the life and general welfare of the working class of Puerto R ico. M in im u m W a g e s T h e creation of the M in im u m W a g e B oard b y a 1941 a c t 2 m arked the beginning o f a new era in labor legislation o f im m ediate and positive benefit to the working people. T h is act aim s prim arily to protect workers so th at, within the requirem ents of com petitive enterprise, their living standards will be m aintained at a fair level in proportion to gen eral econom ic conditions. Pursuant to this act, which supplem ented and im proved an earlier m in im u m wage law of 1 919,3 22 m an d atory decrees fixing m in im u m wages and other working conditions in various industries, businesses, and occupations have been issued.4 P reviously, on ly tw o laws had fixed m in im u m wages in Puerto R ico. T h e act of 1919 established a m in im u m w eekly w age of $6 for w om en and 1 On July 25, 1952, pursuant to a compact entered into with the United States, Puerto Rico approved its own constitution and became known as the Commonwealth of Puerto Rico. 2 Act N o. 8 of April 5,1941, amended by Act N o. 48 of June 10,1948. 8 Act N o. 45 of June 9, 1919. In 1920, the Supreme Court of Puerto Rico upheld the constitutionality of this act, but later annulled it, following the doctrine in the case of A d kin s v. Children’s H ospital o f the District o f Columbia, 261 U . S. 525, 67 L . E d . 785 (Apr. 9, 1923). In 1940, after the famous case of W est Coast H otel Co. v. Parrish, 300 U . S.379, 81 L . E d . 703 (M ar. 29,1937), the Puerto Rico court restored the constitutional validity of this first statute fixing a minimum salary for the benefit of women workers. * Also in force in Puerto Rico are 33 Federal wage orders approved by the Wage and Hour Administrator of the U . S. Department of Labor, under the Fair Labor Standards Act of June 25, 1938. These wage orders apply to 108 industrial divisions, 13 of which, including some major industrial divisions, are now paying a minimum of 75 cents per hour. (See also p. 1370 of this issue.) M an y of the workers covered by Federal wage orders are at the same time covered by local mandatory decrees; in such cases, those legal provisions which are more beneficial to the employees apply. « Act N o. 11 of June 30, 1923. • Act N o. 49 of August 7,1935. 7 Section 2 of the Organic Act (Jones Act of M ar. 2,1917). 8 62 P . R . R . 59 (M ay 18, 1943). The provision contained in Act N o. 49 for double pay for the 9th hour was regarded, not as a wage provision, but as a method of insuring compliance with the provision limiting hours of work. This act had been passed during a period when the doctrine was controlling that a State could not enact a minimum wage law. The con stitutionality of Act N o. 49 had been upheld on the ground that the Legis lature had desired to improve the health of employees and relieve unem ployment. 17 18 eluded the extra hours and double p a y , he w ould collect no additional p a y . B u t the m a n d atory over, it expressly includes am ong the su rviving beneficiaries the w om an w ho at the tim e o f a decrees of the M in im u m W a g e B o a rd — beginning w orker’s death and during the last 3 years before in 1943— constan tly lim ited the legal w orkday to had hon orably lived w ith the w orkm an in a public 8 hours and im posed p ay m en t of extra tim e for state of concubinage as husband and wife. w ork exceeding th at lim it, thus som ew hat allevi In contracts authorized under A c t N o . 89 of ating the adverse effects of the Cardona decision. M a y 9, 1947, b y the Secretary o f L a b o r of Puerto In 1948, the legal im port of th at decision was en R ico on behalf of laborers who annually to go to acted into law 9 and the act of 1935 (N o . 4 9 ) was the U n ited S tates to w ork in agriculture, the con repealed. T h is 1948 act n ot on ly lim its the w ork d ay in Puerto R ico to 8 hours, b u t defines w h at is tracting em ployers are required to p rotect the Puerto R ican workers against labor accidents in m ean t b y extra hours and im poses p ay m en t of the sam e m anner in which laborers w orking in double tim e for work done in excess of th at lim it, industrial activities in those S tates are protected. except in the case o f industries engaged in inter state com m erce w hich are required to p a y on ly at The W o r k m e n ’s A ccid en t C om pensation Act m akes the S ta te the exclusive insurer o f the em the rate of tim e and a half the regular wage for ployers in case o f industrial accidents, and, as a work in excess of 8 hours per d ay or 40 hours per result, a rehabilitation program has been developed week. w ith rem arkable results. T h u s, instead of m ak in g it a crime to hire em ployees b eyo n d 9 hours a d ay, p ay m en t of Insurance Fund has Since 1946, the S ta te operated at San Juan a double tim e is assessed for all hours in excess of 8 Physical M ed icin e and R eh abilitation Clinic for worked ou t of 24 consecutive hours. treatm ent o f injured w ork m en ; another is being Since July 25 , 19 5 2 , the w orkday has been lim ited to 8 hours developed at Ponce. b y constitutional p rovision .10 and O ccu pation al T h era p y w as fou nded to prepare W o r k m e n ’ s C o m p e n s a tio n pists and to extend the services o f the San Juan In 1952, a School of Physical qualified physiotherapists and occupational thera Clinic. Puerto R ican workers in com m ercial, industrial, and agricultural pursuits are protected b y W o r k m e n ’s contrast, acts do A cciden t m o st not S tate C om pensation w orkm en ’s cover farm workers. A c t .11 the from the v ery earliest m o m en t, thus sparing the In worker suffering and econom ic loss which cannot com pensation The irrespective of w age levels. be recom pensed in m o n ey . Puerto R ico act applies to all em ployers of three or m ore workers, Studen ts are trained in all physical m ed i cine techniques so th at rehabilitation m a y start V a c a t io n s , S ic k L e a v e , a n d S e v e ra n c e P a y E very or Puerto R ico has no general law granting v a ca occupational disease is entitled to m edical a tten d tions or sick leave to em ployees in com m ercial, ance and hospital services. W o r k m e n ’s com pensa industrial, or agricultural pu rsu its; how ever, the tion is p ayab le to the injured w orkm en in case of M in im u m W a g e B oard of Puerto R ico, as a gen w orkm an or em ployee who suffers in ju ry p erm an en t-total disability and for tem p o rary - or eral practice, includes in all its m a n d a to ry decrees perm an en t-partial disability. provision for granting vacation s and sick leave In case o f death, the survivors are entitled to a benefit o f as m uch w ith as $ 4 ,0 0 0 if th ey were either w h olly or partially decrees. dependent on the deceased. contain no such provisions. C om pensation or a full pay to em ployees covered by such O n ly 6 12*of the 22 decrees now in force E m p loy ees in indus death benefit am oun tin g to $ 5 0 0 or less is paid in tries and businesses covered b y decrees granting full at one tim e. benefits are usually entitled annually to 15 d a y s’ W h e n m ore than $50 0 is p ay a b le, the S ta te Insurance F u n d m u st require the em vacation and, in addition, p loyee (or beneficiary) to apply all or part o f the T h e constitutional v a lid ity of granting vacation s 15 d a y s’ sick leave. sum to purchase a h om estead, acquire a gainful business, or m ak e som e other in vestm en t th at m a y be profitable. T h e Puerto R ico law has been interpreted as a depen den cy rather than an inheritance a ct. M o r e • Act N o. 379 of M a y 15,1948. i® Under section 16 of Puerto Rico’s constitution. n Act N o . 45 of April 18, 1935. 12 Decrees N o. 1 (leaf tobacco industry); N o. 3 (sugar industry); N o . 8 (soft drinks industry); N o. 11 (construction industry); N o . 17 (pineapple industry); and N o. 19 (coffee industry). 19 w as sustained b y the Suprem e C o u rt of Puerto participated in a strike or in a claim for better R ic o .13 wages and w orking conditions, or are affiliated w ith In case the em ployee should quit or be discharged, he is entitled to collect for all unused a given political p arty. vacation tim e accum ulated to date. Puerto R ican workers are also entitled b y law 14 to 1 m o n th ’s severance p a y if laid E m p lo y m e n t o f W o m e n a n d C h ild r e n off w ithou t T h is statu te has proved a firm b ar Puerto R ic o ’s labor legislation applies equally rier against em ployer a ttem p ts to get rid of em to m en and w om en , b u t there are in addition two ju st cause. ployees through arbitrary or capricious m eans. m a jo r statu tes applicable o n ly to w om en . law 18 prohibits seasonable or lim ited d u ration ; and the courts are com m ercial, industrial, or agricultural activities responsible for determ ining w hether the dism issal betw een 10 p . m . and 6 a. m ., w ith the exception was ju st or u n just. o f w om en w orking in the packing and canning C o lle c tiv e w om en in the textile in dustry, and those under or fruit B a r g a in in g and the em p lo ym en t A 1919 T h e la w , how ever, is n ot applicable to w ork of a vegetable o f w om en refrigeration in industries, 18 years of age em ployed as telephone or telegraph T h e right o f workers to organize and to select freely representatives of their ow n choosing, and operators, artists, nurses, or hom ew orkers. T h is law provides for the p a y m en t of double tim e after to negotiate collectively w ith their em ployers as 8 hours of w ork and p ay m en t of 3 tim es the regular to wages and other conditions of em p loym en t is rate for all w ork in excess of 12 hours during any guaranteed b y law in Puerto R ic o .15 period of 24 consecutive hours. T h e law recognizes th at lab or-m an agem en t disputes in volve U n like the A m erican Territories, the C o m m o n the interest of the public, the em ployee, and the w ealth of Puerto R ico has a m a tern ity welfare em ployer, and it is the G o v ern m en t’s policy to la w .192 0 T h is law p rotect and p rom ote each of these interests w ith offices, com m ercial and industrial establishm ents, applies to w om en w orking in due regard to the situation and to the rights o f all and public-service enterprises. parties. C ollective bargaining contracts are de pective m oth ers w ho are em ployed to a rest which clared to be affected b y the public interest, so th at shall include 4 weeks before and 4 weeks after em p loyer-em ployee are conducted w ith negotiations the under the principal o bjectiv e m aintaining industrial peace. law childbirth, w ith half p ay . I t entitles pros D u rin g the period of of rest the em ployer shall be bou n d, notw ith standin g T h e right to strike a n y stipulation to the contrary, to keep the posi is a corollary o f collective bargaining and has been tion open for the w orking m other. given constitutional recogn ition .16 C ou rt of Puerto R ico upheld the constitutionality In the C o m m on w ealth , since M a y 1 9 4 2 ,17 an em ployer m a y be g u ilty o f a m isdem eanor if he T h e Suprem e o f this act in the case of Ponce Candy Industries v . District Court.™ perform s a n y act of discrim ination against his C h ild labor is regulated under a law prohibiting em ployees, because th ey h av e organized, or taken gainful em p loym en t during public-school hours of part in activities of a labor union, or dem anded minors w ho are between 14 and 18 years of age.21 th a t a collective labor agreem ent be m ad e, or T h is law also provides th at no m inor aged 14 and « Am erican Railroad Co. v. M in im u m W age Board, 68 P . R . R . 736 (M ay 24,1948). “ Act N o. 50 of April 20,1949. w Act N o. 130 of M a y 8, 1945, creating the Puerto Rico Labor Relations Board, amended by Act N o. 6 of March 7, 1946. I* Section 18 of the Commonwealth Constitution declares that “ in order to assure their right to organize and to bargain collectively, persons employed by private businesses, enterprises, and individual employers and by agencies or instrumentalities of the government operating as private businesses or enterprises, in their direct relations with their own employers shall have the right to strike, to picket, and to engage in other legal concerted activities." 17 According to Act N o. 114 of M a y 7, 1942. 18 Act N o. 73 of June 21,1919, amended. 1# Act N o. 3 of March 13, 1942. 20 69 P . R . R . 387 (December 7,1948). 21 Act N o. 230 of M a y 12,1942. 22 Act N o. 90 of June 24, 1954. over b u t less than 18 shall be em ployed at gainful w ork for m ore than 6 consecutive d ays in any week, or for m ore than 40 hours in a n y 1 week, or for m ore than 8 hours in a n y 1 d ay . A num ber of hazardous occupations are specified in which the em p lo ym en t of m inors under 16 or under 18 years of age is strictly prohibited. T h is law w as am ended peddling new spapers.22 to p rotect U n d er its term s, m inors (1) no child under 15 years shall engage in selling, deliv ering, or distributing newspapers or other p u b licity m aterial in districts or places declared b y 20 the Secretary of L a b o r to be dangerous to life and V iolations of labor statu tes are determ ined sa fe ty ; (2) newspaper enterprises or editing con either through investigations conducted b y cerns which em ploy m inors over 15 years for such D ep a rtm en t on its own in itiative the or follow ing work in places deem ed dangerous shall establish com plaints filed b y workers. stands or select sites in m u tu a l agreem ent w ith follow ing established policy, alw ays a ttem p ts to the Secretary of L a b o r and w ith the authorization reach a friendly arrangem ent in those of which it has intervened. th e proper C om m on w ealth auth orities; and and m unicipal T h e D e p a rtm e n t, cases in A t such tim es, adm inis (3) m inors betw een 12 and 18 trative hearings are held and the parties in volved years shall n ot be em ployed in peddling new s are given the opportu nity to m ake their respective papers or other p u b licity m aterials after 11 p . m . allegations and to offer evidence. or before 5 a. m . ployers and em ployees fail to reach an agreem ent O th e r L a b o r L a w s is su bm itted to the B ureau of L egal A ffairs, w hich W h en ev er em through proper adm inistrative channels, the case institutes the proper judicial proceedings; h ow O th er laws of interest to the working people ever, this action is taken only when the em ployer, include those which (1) provide for a d a y o f rest for an y reason, refuses to co m p ly w ith the D e after 6 d ays of consecutive w ork in businesses n ot p artm en t of L a b o r s determ ination. covered im m ediate enforcem ent o f the law in extraordinary by the ‘ ‘C losing A c t ” ; 23 (2) p rohibit T o com pel issuance of injunctions in lab or d isputes; 24 (3) situations, the Secretary o f L a b o r m a y resort to create affiliated injunction proceedings; or he m a y in stitu te special U n ited proceedings to force em ployers to produce th e a w ith public the em p lo ym en t E m p lo y m e n t service Service of the S t a t e s ;25 (4) m ak e u nem ploym ent com pensation evidence needed in cases under in v e s tig a tio n ;28 payable to workers in the sugar industry during or through com plaints based on a special proceed the season follow ing the cutting and grinding of ing established b y law , he m a y claim the p a y m e n t each cane a m u tu al of wages or a n y other benefits provided for em benefit plan for chauffeurs (defined in the law as ployees in a n y m a n d atory decree; and w henever persons c r o p ;26 and operating (5) m otor establish vehicles for p a y ),27 the circum stances warrant, he m ay even file w hereby b oth the chauffeur and his em ployer con criminal indictm ents for labor law tribute to a com m on fund to be used to purchase T h e D e p a r tm e n t’s attorneys act as special prose an $ 1 ,8 0 0 life insurance p olicy and to p a y su b cutors in crim inal cases and as defenders in civil stantial benefits in case of illness or disability. actions. E n fo rc e m e n t o f to Puerto R ican workers in claim ing p a y m e n t o f vio la tio n s.29 P robably the m o st effective w eapon a va ilab le L a b o r L e g is la tio n wages due, w hether for regular or extra hours,, The is vacations, or an y other pecuniary benefit, is the responsible for enforcem ent of all la b or legislation provision contained b oth in the M in im u m W a g e in A c t and in the H ou rs A c t (N o . 379 of M a y 15, the Puerto R ico D ep a rtm en t C om m on w ealth . The of Labor D e p a rtm e n t at tem pts to keep em ployers and workers currently 1948) th at em ployers m u st p a y dam ages in an advised concerning the various legal provisions in a m ou n t equal to th at awarded the em ployees b y w hich th ey m a y be interested. Before a m a n d a tory decree of the M in im u m W a g e B oard is p u t the court. Experience has the workers’ right to action dem on strated th a t against em ployers into effect, the B ureau of L ab o r Standards holds general inform ational m eetings of the em ployers and em ployees affected, to avoid in volun tary violations and to obtain v olun tary com pliance b y em ployers. T h e Bureau of Legal Affairs of the D e p a rtm e n t answers all inquiries m ade b y labor unions, em ployer organizations, individual em ployers, or laborers as to the coverage, interpre tation, and applicability of the various law s. » Act N o . 289 of April 9, 1946. » Act N o. 60 of August 4,1947. *3 Act N o. 12 of December 20,1950. 2» Act N o. 356 of M a y 15, 1948. » Act N o. 428 of M a y 15,1950. 28 This authority was upheld in Sierra v. Cuevas, 72 P . R . R . 167 (Feb. 13,, 1951). 2# Act N o. 8 of April 5, 1941 (the M inim um W age A ct), amended by Act N o. 48 of June 10, 1948, empowers the Secretary of Labor to sue, on his own initiative or at the request of one or more laborers concerned, for any amount of money due as wages. Act N o. 428 of M a y 15, 1950, creating the social security system for chauffeurs, grants him the same powers. 21 under these two laws has been highly effective in cation of section 16 of the F air L a b o r Standards securing settlem en t of m a n y claim s because em A c t b y section 5 of the P o rta l-to -P o rta l A c t as ployers prefer to p a y the original claim , and thus regards in m o st cases, avoid court litigation, rather than th at no em ployee shall be a p a r ty plaintiff to any to risk p ayin g the p en a lty in the even t of an such action unless he gives his consent in writing adverse ju d gm en t. and his consent is filed in the court in which such T h ese dam ages operate like collective proceedings, which provides a p en alty against an em ployer for u ndu ly w ith action is brought. holding wages due to the e m p lo y e e s30 and m a y R ico has decided th at em ployees in w age claim only be w aived w ith cases need n ot appear personally in court if th ey approval.31 the Secretary of L a b o r ’s T h e em ployer m a y n o t plead good faith as a defense to escape the p e n a lty .32 T h e Suprem e C ou rt of Puerto are represented b y attorneys. Furtherm ore, th at court has upheld the Secretary o f L a b o r ’s action T h e judicial or extrajudicial settlem en ts in these continuing a court proceeding on behalf o f a claim s cases, in order to h ave legal v alid ity , m u st worker who, w hen testifying in the inferior court, first be approved b y the Secretary of L ab o r, as stated th at his em ployer owed nothing to him and provided by the H ou rs A ct. T h is, o f course, affords better protection for those workers whose th at he had never authorized the Secretary of L a b o r to include h im as a claim ant in the case. claim s are taken to court through independent In attorneys. stated, in part, as fo llo w s: In no case in volving a court claim are the em ployees or workers m ad e to p a y a t torn eys’ fees, because this obligation has been specifically im posed on the em ployers b y la w .33 T h e Secretary of L a b o r m a y also appear in court in w age-claim cases, in representation and for the benefit o f all such laborers as he m a y see fit. T h is has been the constan t practice; in 1 specific case a total of 927 laborers were represented b y h im . In this respect, the legislation o f Puerto R ico does n ot contain the lim itation im posed on the appli *o Overnight M o to r Transportation Co. v. M is s e l 316 U . S. 662. (June 8, 1949), p. 15: Tulier v. Land Authority o f P u erto R ico, 70 P . R . R . 249 (July 13, 1949). 31 Section 13 of Act 379 of M a y 15, 1948. 32 In cases arising under the Fair Labor Standards Act, subsequent to approval of the Portal-to-Portal Act (M a y 14, 1947), the defense of good faith may be raised by an employer. 83 Act N o. 402 of M ay 12, 1950. 3< Commissioner o f Labor v. R om an, 73 P . R . R . 294 (April 3, 1952); see also p. 297. disposing of this case, the Suprem e . . . It is true that Montalvo was produced as a witness for the defendant and testified that the employer does not owe him anything and that he had not authorized the Commissioner of Labor to include him as a plaintiff in the instant case. But cases still arise, including apparently this case, where employees are not aware of their rights. The Commissioner was following the mandate of the Legislature laid down in Subsection 25 of Act No. 8, as amended, in pressing this action in favor of Montalvo to whom the defendant owed money according to his own records. Under these circumstances the defendant cannot take refuge in the ignorance of Montalvo as to his rights or his failure specifically to authorize his joinder as a plaintiff.34 T h e Secretary o f L a b o r o f Puerto R ico has, w ith good reason, declared th a t “ to the workers of Puerto R ico, the D e p a rtm e n t o f L a b o r and its offices in the island represent their G overn m en t in action .” “ A ccordin g to D r . C oll y T o ste 'sugar cane w as taken to H isp an iola in 1506, w hence it w as brou ght to Porto R ico in 1 5 1 5 .’ In 1548 the first sugar p la n ta tion w as established near the B a y a m o n R iver. m olasses was m anufactured from the cane. loupe to P orto R ico in 1763. 'U n t il then n oth in g b u t Coffee w as brou ght from G u a d e T ob a cco was indigenous and m u ch prized b y the n ative In dian s, b u t the Spanish G overn m en t fo u gh t its u se; tw o P apal bulls excom m unicated those w ho used it, and a Spanish royal cedula in 1608 prohibited definitely the cultivation of tobacco in P orto R ico. In 1634, how ever, tobacco was again grown, and also ca cao .’ ” Bulletin of the Department of Labor, Vol. 6, 1901 (p. 383): Labor Conditions in Porto Rico. C ou rt PUERTO RICO 46 (table 1). In term s of m ainland standards this is low , b u t due to the lack of m echanization, a ton Wage Structure and Minimum Wages of cane harvested in Puerto R ico requires 1.70 m a n -d a y s; it needs on ly 0 .3 8 m a n -d a y in H aw aii, and 0.76 in L ou isian a.1 Coffee ranks second to sugar in term s of em plo y m en t and area of cultivation. In 1 9 4 5 -4 6 , the workers in this industry received an average F r a n k Z o r r il l a daily wage of $ 1 .0 5 , while in 1 9 5 3 -5 4 th ey received $ 1 .6 9 . T h e m in im u m daily w age of $1 .7 5 paid in the fall of 1955 is an increase of 67 percent over 1 9 4 5 -4 6 . Coffee is harvested in high, sloping lands where m echanization is hardly possible. W ages in the C om m on w ealth o f Puerto R ico stand m id w a y betw een those of an underdeveloped, lo w wage agricultural econ om y and those of a highwage, h igh -p rod u ctivity, industrialized econom y. T h is wage structure places Puerto R ico in a som e w h at difficult position, for it cannot com pete w ith the underdeveloped areas on the basis of low wages nor w ith the industrialized areas on the basis of produ ctivity. In A p ril 1955, workers engaged in m an u fac turing averaged 57.6 cents an hour. average In 1 9 5 3 -5 4 , earnings in im p ortan t industries were: sugarcane, $ 3 .37 per d a y ; retail trade, 37 cents an h ou r; 4 7 .9 m anufacturing cen ts; and (production construction, 55.2 w orkers), cents. The Puerto R ico M in im u m W a g e B oard has set m in i m u m wages starting at 20 cents an hour in needle work trades producing for the Puerto R ican m arket and rising to $ 1 .1 0 for a specific occupation in construction. M in im u m wages set b y the U . S. D ep a rtm en t of L a b o r for workers engaged in inter state com m erce range from 2 2 .5 cents in som e needlew ork and textile products to 75 cents in m o st 15 m a n -d a y s are needed T h u s, al to produce 100 pounds of coffee valued during the la st 3 years at around $54 on the farm . M o reov er, an acre of land yields an average o f on ly 150 pou n ds of coffee. T h e daily w age rose su bstan tially m ore between 1 9 4 5 -4 6 and 1 9 5 3 -5 4 in other agricultural indus tries than in coffee; for exam ple, from $ 1 .5 9 to $ 2 .3 9 in pineapple and citrus fruits, $ 1 .6 3 to $ 2 .4 7 in dairy farm s, and $ 1 .3 9 to $2.21 in other farm s. T h e percentage increase, how ever, was higher in coffee. M anufacturing. in Production worker em p loym en t m anufacturing industries has risen steadily since 1939— from 3 1 ,0 0 0 to 6 0 ,0 0 0 in A p ril 1955. T heir gross average hourly earnings 2*8 rose from 3 5 .7 cents in A pril 1946 to 57.6 cents in A p ril 1955, a rise of 6 1.3 percent (table 2 ). T h e greatest gains in hourly earnings betw een A pril 1946 and A pril 1955 occurred in transpor tation equ ip m en t; m eta l ch inery; textile-m ill products, except m a p ro du cts; and m achinery (foundries). various industries. W a g e s b y In d u s try Agriculture. Agriculture, w hich is the center of econom ic activ ity on the island, provides around 36 percent of the total em ploym en t. T h e cu ltiv a tion of sugarcane, w ith an average yearly em p lo y m en t of 6 4 ,5 0 0 (131 ,0 0 0 in the peak season), is the m o st im portant agricultural industry. Sugarcane workers received an average of $3 .3 7 per d a y in 1 9 5 3 -5 4 , com pared w ith $ 2.03 in 1 9 4 5 - 22 1 Statements of Fernando Sierra-Berdecia, then Commissioner of Labor, and Candido Oliveras, Chairman of the M inim um W age Board, before the subcommittees of the Committee on Education and Labor and the Com mittee on W ays and Means of the U . S. House of Representatives (81st Cong., 1st sess.) on Extension of a M inim um Wage of 75 Cents Per Hour and Social Security Bill (H . R . 6000) to Puerto Rico, appendix A (p. 77). For data in the testimony by M r. Oliveras, see also U . S. House of Representa tives, Investigation of M inim um Wages and Education in Puerto Rico and the Virgin Islands, Hearings before a Special Investigating Subcommittee of the Committee on Education and Labor (81st Cong., 1st sess.), at San Juan, November 21, 1949 (p. 113). 8 Gross hourly earnings are computed by dividing the total payroll of production workers by the total man-hours worked. As the average weekly hours amounted to 32.9 in April 1955, it may be assumed that the gross hourly earnings did not differ greatly from straight-time hourly earnings. 23 T able 1.— N u m b e r and average d a ily wages o f wage an d sa la ry w orkers in agricultural in d u stries , P u e rto R ico , 1 9 4 5 - 4 6 and 1 9 5 3 - 5 4 In retail trade the average w age in 1953 was around 37 cents per hour, while in 1943 it w as on ly Average number of work ers, 1953-54 Industry Average daily wage cents.3 E ffectiv e A u g u st 1955, the the w age decree applicable to retail trade, estab 1953-54 1945-46 21 C om m o n w ea lth 's M in im u m W a g e B oard revised lishing w eekly m in im u m rates which v a ry accord 64,500 16,000 *5,000 »1,800 3 18,800 Sugarcane......... ........... ......................... Coffee........................................ ............. D airy farms_______________________ Pineapple and citrus fruits............... Other farms........... ............. ................. $2.03 1.05 1.63 1.59 1.39 $3.37 1.69 2.47 2.39 2.21 ing to different zones established in the decree. U n der the revised decree, w ages paid in retail trade in the fall o f 1955 are expected to average approxim ately 1 Estimated b y the Division of Research and Statistics of the Puerto Rico M inim um basis of previous studies. 46 cents an hour, m ore than double the wages in 1943. Source: Department of Labor, Bureau of Labor Statistics, and Annual Reports of the State Insurance Fund of Puerto Rico, 1945-46 and 1953-54. A p p ro xim ately 3 4 ,0 0 0 workers were Construction. Trade. m any T rad e in Puerto R ico is characterized b y sm all stores, a large num ber of operated b y the owners and their fam ilies. sale em ployed th em industry in W h o le establishm ents engaged in interstate on w age co m the average 1 9 5 4 -5 5 . averaged 57 In cents, the construction 1 9 5 4 -5 5 , in their hourly com pared w ith 3 5 .9 cents in 1 9 4 5 -4 6 .4 merce, obviou sly the larger and m ore prosperous, T h e Puerto R ico M in im u m W a g e B o a rd has are su bject to a m in im u m wage of 65 cents per set m in im u m hourly rates for the construction hour, set under the Fair L a b o r Standards A c t in dustry ranging from 32 cents to $ 1 .1 0 , depending (table 3 ). on the occupation. bound by The determ ined a rem aining 50-cen t under the establishm ents hourly m in im u m Puerto R ican are w age to m in im u m W h en ev er the w ork is related com m erce, the low est m in im u m perm itted under the F air L a b o r Standards A c t is wage act (table 4 ). * 50 cents. The Puerto R ican w age being revised in Septem ber 1955. 3 Figures from the Division of Research and Statistics of Puerto Rico's M inim um W age Board. * Annual Reports of the State Insurance Fund of Puerto Rico, 1945-46 and 1953-54. T able 2.— interstate order was T h e rates in the proposed m a n d a to ry decree range from 50 cents to $ 1 .4 0 per hour. N u m b e r and average gross h o u rly earnings o f prod u ction w orkers in m a n u fa ctu rin g in d u stries, P u e rto R ic o , A p r i l 1 9 4 6 and A p r i l 1 9 5 5 April 1955 April 1946 Industry Average gross hourly earnings (in cents) Number of workers Number of workers Average gross hourly earnings (in cents) Percent increase in earnings, 1946-55 All industries..------- ------------------------------------------------------ ------------------- 49,600 35.7 60,100 57.6 61.3 Food and kindred products-------------- ---------------------------------------------Tobacco manufactures______________________________________________ Textile-mill products____________________ _____________ . . . _______ Apparel and related products_____ _________________________________ Lumber and wood products (except furniture)-------------------------------Furniture and fixtures__________ _________ _____ _______ ________ ____ Paper and allied products--------------- ------------------------------------- --------Printing, publishing, and allied industries-------------------------------------Chemical and allied products; products of petroleum and coal; and rubber products___________________________________ _______ _ Leather and leather products_______________________________________ Stone, clay, and glass products_____________________________________ Metal products, except machinery-------- ----------- ------------------- ----------Machinery (foundries)______________________________________________ Electrical machinery.---------- -----------------------------------------------------------Transportation equipment_______________ _____ ____________________ Instruments and related products_____________ ________ ___________ Miscellaneous manufacturing industries.......... ......... ........... ............. .. 21, 500 8,900 1, 500 10,200 500 1,500 200 900 40.8 30.1 29.0 26.6 33.5 29.3 47.1 43.1 17,500 5,200 3,400 16,100 272 2,400 400 900 72.7 35.7 52.4 45.1 58.0 47.9 74.3 70.8 78.2 18.6 80.7 69.5 73.1 63.5 57.7 64.3 1,000 200 1,300 200 600 0) 100 0) 1,000 46.2 29.5 47.6 31.9 46.2 0) 38.8 0) 47.5 1,200 1,900 2,600 1,000 800 1,600 200 1,000 3,600 68.0 47.6 71.5 63.8 83.0 57.7 89.1 61.3 57.5 47.2 61.4 50.2 100.0 79.7 0) 129.6 0) 21.1 i Data not available. Source: Puerto Rico Department of Labor, Bureau of Labor Statistics, 371655— 56------ 3 Employment, Hours, and Earnings in Manufacturing Industries in Puerto Rico, 1955. 24 T able 3.— M i n i m u m wage rates in P u e rto R ic o u nd er the F a ir L a b or S ta nda rds A c t , as a m ended Industry and division Alcoholic beverage and industrial alcohol: M alt beverage division_____________ _____ _______ General division_________________________________ Artificial flower___ _____ __________ ______ ____ ________ Banking, insurance, and finance------- ----------------------Button, buckle, and jewelry: Button and buckle (other than pearl, leather, or fabric) and bead division___________________ Costume jewelry general division........ ............. .. Costume jewelry hair ornament division........... . Leather and fabric button and buckle division.. M etal expansion watch band division......... ......... Pearl button and buckle division_______________ Precious jewelry division________________________ Rosary and native jewelry division............. ......... Cement_______________________________________________ Chemical, petroleum, and related products indus tries: Fertilizer division......... ................................................ Hormones, antibiotics, and related products division________________________ ________________ General division_________________ _____ __________ Clay and clay products: Semivitreous and vitreous china food utensils division________________________________________ Structural clay and miscellaneous clay prod ucts division___________________________________ Communications, utilities, and miscellaneous transportation industries: Airline division____________________ _____ ________ Cable and radiotelephone division______________ Gas utility division_________________ ____________ Radio broadcasting division--------------- ---------------Telephone division______________________________ Television broadcasting division________________ Tourist bureau and ticket agency division--------Miscellaneous division____________________ _____ _ Construction, business service, motion picture, and miscellaneous industries: Business service and miscellaneous industries division__________________________________ ______ Construction division____________ _____ _________ M otion pictures division.------- ---------------- ----------Corsets, brassieres, and allied garments_____________ Decorations and party favors________________________ Electrical, instrument, and related manufacturing industries: Lens and thermometer division............................... Resistance-type household appliance division... General division_________________________________ Food and related products: Citron brining division________ ________ _________ General d ivision ...--------- ------------------------------------Handicraft products............................................ ................. Hooked rug: Hand-hooked rug division................................ ......... Machine-hooked rug division................................... Hosiery_________________________ _____________________ Jewel cutting and polishing: Gem stone division...... ....................... ................... . Industrial jewel division........ ................................... Leather, leather goods, and related products: Hide curing division................................... ........... — Leather tanning and processing division-----------Small leather goods, baseball, and softball division____________ _________ ______ _____ _____ _ General division.............. ..................... .......... ............. Lumber and wood products: Furniture, woodenware, and miscellaneous wood products division________________ ______ _ Lumber and millwork division__________________ M en's and boys' clothing and related products: Hat and cap division___________ _________________ Necktie division___ ______ _____ ______ ___________ Suits, coats, and jackets division________________ General division_________________________________ M etal, machinery, transportation equipment, and allied industries: Drydock division_________________________________ Fabricated wire products, steel spring, and slide fastener division__________________________ General division______________________ ______ _____ Needlework and fabricated textile products: Art linen and needlepoint division: Hand-sewing operations_________ _____ ______ Other operations......... ......... ......... ........... ........... Blouse, dress, and neckwear division: Hand-sewing operations...................................... Other operations......... ......... ................. ............... Hourly mini mum wage rates (in cents) Effective date 75 75 43 75 Oct. 6,1955 Oct. 6,1955 N ov. 6,1950 July 13,1953 48 36 50 53 60 54 55 33 75 June Jan. Jan. Dec. June Sept. June June July 75 July 14,1952 75 51 July 14,1952 July 14,1952 40 June 25,1951 40 Jan. 1,1951 75 75 75 65 75 75 75 75 M ay M ay Oct. Oct. Oct. Oct. M ay M ay 5,1952 5,1952 20,1955 20,1955 20,1955 20,1955 5,1952 5,1952 8,1953 4,1954 4,1954 6,1954 8,1953 14,1953 8,1953 8,1953 13,1953 65 50 55 55 30 Aug. Aug. Aug. N ov. Aug. 11,1952 11,1952 11,1952 8,1954 13,1951 60 65 70 Sept. 12,1955 Sept. 12,1955 Sept. 12,1955 40 45 26 Oct. 20,1955 Oct. 20,1955 Apr. 16,1951 33 40 50 July 21,1952 July 21,1952 M ay 3,1954 50 4 2^ N ov. 19,1951 Jan. 28,1952 65 40 Sept. 14,1953 Sept. 14,1953 32 40 Sept. 14,1953 Sept. 14,1953 38 42 Aug. 11,1952 Aug. 11,1952 55 55 55 47# M ar. M ar. M ar. M ar. 14,1955 14,1955 14,1955 14,1955 75 N ov. 30,1953 65 75 June 27,1955 June 27,1955 22H 40 June June 6,1955 6,1955 35 June June 6,1955 6,1955 45 Industry and division Needlework and fabricated textile products— Con. Children's and dolls’ wear division: Hand-sewing operations.................................. — Other operations_______________________ Corde and bonnaz embroidery and corde hand bag division.................... ............... ....... Cotton underwear and infants underwear divi sion: Hand-sewing operations________ ______ _____ Other operations________ ___________________ Crochet beading, bullion embroidery, machine embroidered lace, insignia, and chevron division._________________ _________ _________ Crocheted hats and infants’ bootee division: Hand-sewing operations_____________________ Other operations_____________________________ Crocheted slipper division__________ _____ _______ Dungarees, slacks, and related products divi sion_______________ _________ _______ __________ Fabric glove division: Hand-sewing operations______________ ___ _ Machine operations and any operations known to the industry as cutting, laying off, sizing, banding, and boxing________ Other operations_____________________________ Handkerchief and square scarf division: Hand-sewing operations___________ ________ Other operations______ ______________________ Hat body division____ _________________ _________ Infant's wear division: Hand-sewing operations_____________________ Other operations__________ _______ __________ Knit glove division__________ ___________________ Leather glove division: Hand-sewing operations_______________ _____ Machine operations and any operations known to the industry as cutting, laying off, sizing, banding, and boxing___________ Other operations_____ ________________ ___ __ Silk, rayon, and nylon underwear division: Hand-sewing operations.____________________ Other operations_______ ________________ Suits, coats, skirts, fur garments, and related products division______ _______________________ Sweater and bathing suit division______________ Miscellaneous apparel products division_______ General division: Hand-embroidery operations........... ............... Other operations......... ... _ _________________ Paper, paper products, printing, publishing, and related industries: Daily newspaper division______ _________________ Paper bag division_______________________________ Paperboard division.__________ __________________ Paper box division_______ _____ __________________ General division_________________ ________ _______ Plastic products: Sprayer and vaporizer division__________ _______ W all tile, dinnerware, and phonograph records division_____________ ___________________________ General division____ . . . ______________________ Railroad, railway express, and property motor transport: Railroad division___________ ________ ____________ Railway express and property motor transport division___________ _____________________________ Rubber, straw, hair, and related products: Rubber products division_______________________ Straw, hair, and related products division______ Shipping__________________ ________ _______ __________ Shoe manufacturing and allied industries___________ Stone, glass, and related products: Concrete pipe division___________________________ Glass and glass products division____________ Glass decorating division_______________________ H ot asphaltic plant mix division............................. Mica division_________________________ _________ General division_____________ ___________________ Sugar manufacturing________________________________ Textile and textile products: Cotton ginning and compressing division_______ Hard fiber products division------------------------------Mattress and pillow division____________________ General division.—--------- -------------------------------------Tobacco: Puerto Rican cigar filler tobacco processing divi sion--------- ----------------------------- --------- ------------------General division _________ ________ _______________ Wholesaling, warehousing, and other distribution _ _ Source: U . S. Department of Labor, W age and Hour and Public Contracts Divisions. Hourly mini m um wage rates (in cents) Effective date 35 40 June June 6,1955 6,1955 51 July 25,1955 22H 40 June June 6,1955 6,1955 47K June 6,1955 35 45 45 June June June 6,1955 6.1955 6,1955 47^ June 6,1955 22# June 6,1955 5 7^ 40 June June 6,1955 6,1955 2 2 ^ June 40 June 57^2 June 6,1955 6,1955 6,1955 25 40 40 June June June 6,1955 6,1955 6,1955 30 June 6,1955 57V2 June 40 June 6,1955 6,1955 26 48 Oct. Oct. 6,1955 6,1955 55 50 47K Oct. June Oct. 6,1955 6,1955 6,1955 35 45 Oct. Oct. 6,1955 6,1955 60 45 40 55 40 Dec. Dec. Dec. Dec. Dec. 10,1951 10,1951 10,1951 10,1951 10,1951 75 July 25,1955 60 53 July 25,1955 July 25,1955 33 M ay 4,1953 60 M ay 4,1953 60 37 75 40 Oct. 13,1952 July 20,1953 July 24,1950 4,1954 Jan. 60 60 42 75 42 50 75 M ar. M ar. M ar. M ar. M ar. M ar. M ar. 30,1953 30,1953 30,1953 30,1953 30,1953 30,1953 2,1953 40 37H 75 42H Aug. Aug. Aug. Aug. 23,1954 23,1954 23,1954 23,1954 35 50 N ov. 28,1955 Oct. 20,1955 Aug. 27,1951 *" fw?Hs| 65 25 T able 4.— M i n i m u m wage rates in P u erto R ic o u n d er the C om m on w ealth M in i m u m W a g e A c t M anda torydecree num ber^ Industry Effective date Leaf tobacco___________________ Sugarcane growing_____________ Sugar manufacturing:.................. Raw sugar_____ _____ ______ Refined sugar______________ Hospitals_______________________ Soft drinks.____ ________________ Restaurants__________ _________ Theaters _ _ Retail trade____________________ Bread, bakery products, and crackers_____________ ________ Construction___________________ Transportation________ ______ __ Laundries______________________ Furniture and wood products. _ Stone quarries__________________ Wholesale trade________________ Pineapple: Agriculture __ . . . Canning _ __ _ _ Dairy: Agricultural phase. _ Industrial phase___________ Coflee growing_________________ Commercial printing, news papers, and periodicals Needlework____________________ Hotels _______ _________________ Ice cream and ices. _ B eer... ________________________ M ar. 1943............. Apr. 1943_______ ____ do____ ______ Hourly mini m um (or range of minimum) wage rates (in cents) m a y be found in custodial w ork, had an average w age rate o f 52 cents per hour, 4 4 cents less than the rate of the skilled workers and 18 cents less than th at received b y sem iskilled workers. A com parison o f the Interindustry Com parisons. 1 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25.0 2 17.5-40.6 July 1951________ M ar. 1944______ Jan. 1955________ N ov. 1953. . . Aug. 1955......... .. 33.0-46.3 33.0-46.3 31.0-60.0 25.0-30.0 25.0-33.0 35.0-70.0 27.1-43.4 July 1945............. July 1946............... Feb. 1948............. June 1948........... . Sept. 1948............. N ov. 1948_______ Oct. 1949________ 28.0-82.5 32.0-110. 0 25.0-50.0 25.0-40.0 25.0-60.0 35.0-100.0 50.0 Sept. 1950_______ ___ d o .................... 21.0-50.0 30.0 Jan. 1951________ ____ do........ ........... Dec. 1954_______ 20.0-50.0 30.0-35.0 21.9 N ov. 1951_______ Jan. 1953________ Sept. 1952_______ Feb. 1953.......... Aug. 1954........... .. 35.0-60.0 20.0-25.0 24.0-40.0 30.0-50.0 70.0 1 The Supreme Court of Puerto Rico annulled decrees numbered 2 and 10 fixing minimum wages retroactively for sugarcane and dairy industry worktuo. 2 M inim um when sugar is priced at $3.74 per hundred pounds. Por each cent above that price, the daily wage is increased % of a cent. The price of sugar was around $6 a hundred pounds early in November 1955. Source: Puerto Rico M inim um Wage Board. earnings in those occupations im p ortan t in term s of em ploym en t and com m on to all industries m a y illustrate to som e extent the w age interrelation ships in m anufacturing processing 5 ). “ U t ilit y ” occupation num erically, receive the highest w age in the food and kindred products industry (71 m anufactures cents) and the low est in tobacco (34 cents). M o s t of the workers in food and kindred products are found in the production of sugar, a h igh -payin g in dustry w hich has a Federal m in im u m wage of 75 cents per hour. A verage wages for u tility workers in the other industries ranged from 36 to 60 cents per hour. F or clerical w ork, the n ext m o st im p ortan t nonprocessing occupation, were 75 cents per hour. the average earnings T h e highest wages were paid in the chem icals and food industries and the lowest in the apparel and related products. T h e m anufacturing industries in Puerto R ico p ayin g the equipm ent O c c u p a tio n a l W a g e s (table workers, representing the m o st im portant non highest and wages m ach in ery; are: food transportation and kindred p rodu cts; stone, clay, and glass; and chem icals In O ctober 1953, production workers in m a n u facturing industries had gross hourly earnings of 4 7 .9 cen ts; averaged workers products. T ob a cco products is the (See tables 2 and 5.) office workers in the sam e industries 7 9 .3 cen ts; averaged 84.1 repair and cen ts; m aintenance and those ($ 0 .9 9 ); W a g e L e g is la tio n Puerto R ico has h ad its own m in im u m -w age In m anufacturing, the best paid occupations, exclusive of processing, w ere: M in im u m in custodial work, 5 2.0 cents.5 m echanic and allied low est payin g industry. electrician ($ 1 .0 6 ); secretary ($ 0 .9 6 ); plum ber law since 1 9 4 1 .*6 T h e act em pow ers the M in im u m W a g e B oard to set m in im u m w ages and other working conditions in the different industries in ($ 0 .8 5 ); carpenter ($ 0 .8 2 ); ty p ist ($ 0 .8 0 ); store Puerto R ico. keeper ($ 0 .8 0 ); and clerk, service and G o v ern m en t e m p lo y m en t; how ever, T h e low est paid occupa industries operated b y G o v ern m en t agencies are payroll clerk ($ 0 .7 6 ); general office ($ 0 .7 5 ). tions were ($ 0 .4 6 ); truckdriver gatem an and oiler ($ 0 .6 0 ). helper ($ 0 .5 9 ); ($ 0 .4 5 ); w atch m an porter ($ 0 .5 9 ); (See table 5.) T h e average for all skilled workers (e. g ., elec tricians, carpenters, and m echanics) was around 96 cents per hour, while their assistants averaged 70 cents per hour. N on skilled workers, such as 8 Puerto Rico Department of Labor, Bureau of Labor Statistics. 6 See also p. 17. included. The act excludes on ly dom estic In 15 years, the B oard has issued 22 m an d atory decrees covering around 2 9 6 ,0 0 0 em ployees at peak em p loym en t and increasing their incom e b y abou t $23 m illion. T h e F air L a b o r Standards A c t (covering all industries engaged in interstate com m erce or in the production of goods for interstate com m erce) was m ade applicable to Puerto R ico when passed, in 1938. O riginally, this law applied to Puerto 26 R ico the sam e m in im u m w age established for Seventeen special in dustry com m ittees h ave the continental U n ited States, b u t in 1940 C o n been convened since 1 9 4 0 ; 33 w age orders cover gress decided th at it w as n o t econom ically feasible approxim ately 100 industrial divisions. to set the sam e flat m in im u m w age for Puerto R ico as for industries on the m ainland. T h e m in im u m w age rates fixed b y the W a g e and B ecause H o u r D ivision of the U . S. D e p a rtm e n t o f L a b o r of the econom ic difficulties under which the in and b y the Puerto R ico M in im u m W a g e B o a rd , dustries of Puerto R ico operate, Congress am ended for the different industries covered, are presented the F air L a b o r Standards A c t to provide for a flex in tables 4 and 5. ible arrangem ent for Puerto R ico. o f L a b o r of the U n ited in dustry com m ittees T h e Secretary B o th the M in im u m W a g e B o a rd and the U . S. S tates appoints special D ep a rtm en t of L ab o r set the highest m in im u m review wage th a t the in dustry can reason ably p a y w ith in dustry w age rates in Puerto R ico, looking tow ard which periodically o u t creating substantial u n em p lo y m en t and w ith the goal o f the sta tu tory m in im u m applicable in o ut giving com petitive advan tages either to in d u s the U n ited States. tries in P uerto R ico or to similar ones operating E a c h in dustry com m ittee is a tripartite b ody in the U n ited States. representing em ployers, workers, and the public, B o th the M in im u m W a g e B oard of Puerto R ico and the W a g e and H o u r in equal n um bers, and includes m em bers from D ivision both the m ain land and the C om m on w ealth . The orders periodically, taking into consideration the the act provide th a t the ability of the in dustry to p a y wages, the needs of 1955 am endm en ts to aim to revise their decrees and w age com m ittee shall recom m end m in im u m wages for the workers, and the possible com petition th a t m a y the industries under consideration and the Secre exist betw een Puerto R ico industries and their ta ry of L a b o r of the U n ited States shall publish m ainland counterparts. the orders is n ow required o f the W a g e and H o u r recom m ended w age orders in the Federal A n n u a l review o f w age T h ese rates becom e final and binding D ivision b y act o f the 8 4 th Congress in 1955. on all em ployers in the in dustry w ithin 15 d ays A rou nd 10 of the 22 Puerto R ican decrees h ave after publication. been, or are being, revised. R egister. T able 5.— N u m b e r and straight-tim e average h o u rly wage rates o f w ork ers in selected n o n p ro cessin g occu p a tion s in m a n u fa ctu rin g in d u stries, b y m a jor in d u stry gro u p s, P u e rto R ic o , October 1 9 5 3 Straight-time average hourly earnings Industry U tility worker Num ber of workers........................ Clerk, general office 2,191 All industries.................................... $0,643 Food and kindred products____ Tobacco manufactures.................. Textile-mill products.................... Apparel and related products... Lumber and furniture.................. Paper and allied products; and printing, publishing, and al lied industries.............................. Chemicals and allied products; products of petrolem and coal; and rubber products........ Leather and leather products. _. Stone, clay, and glass products.. Fabricated metal products; machinery; electrical m a chinery, equipment and sup plies; and transportation equipment..................................... Instruments and related prod ucts; and miscellaneous manufacturing industries_____ .711 .344 .421 .382 .357 .867 .682 .572 .559 .670 $0.992 (2) (7) (10) (11) (9) Porter 627 817 $0.747 (1) (11) (7) (8) (10) Mechanic 1.008 .811 1.157 .903 1.205 567 .533 .314 .378 .367 .391 .683 .404 .437 .419 .466 413 $0. 627 (2) (10) (8) (9) (5) Assistant mechanic .620 .384 .518 .607 .616 376 $0.716 (6) (11) (10) (9) (8) Carpenter .774 .570 .551 .447 .559 271 $0.818 (2) (5) (8) (11) (6) Secretary .853 .676 .830 .695 .713 224 247 $0.960 (3) (11) (4) (10) (9) Truckdriver helper .984 .717 .639 .808 .915 $0.450 (5) (10) (11) (9) (8) .449 .328 .365 .300 .374 (4) (9) (8) (10) (7) .540 (5) .799 (3) 1.306 (1) .572 (2) .552 (3) .620 (7) .744 (3) .733 (8) 1.056 (2) .650 (1) .592 (3) .363 (9) .598 (2) .901 (1) .677 (8) .718 (6) .863 (9) .950 (7) 1.059 (6) .566 (3) .393 (7) .411 (6) .538 (4) .394 (11) .461 (7) .668 (3) .708 (2) .786 (1) .555 (7) .510 (9) .779 (1) .778 (6) .796 (5) .898 (1) .980 (6) .972 (7) .990 (4) .380 (6) .456 (6) .791 (4) .497 (5) .720 (1) .632 (5) .487 (10) .756 (7) 1.137 (1) .620 (2) .561 (4) .784 (5) .647 (1) .462 (6) .633 (4) .609 (4) .857 (2) 1.040 (3) .489 (3) .778 (11) 1.145 (4) Source: See Rates per Hour, Hours Worked, and W eekly W age in Interindustrial Occupations in Manufacturing Industries, Puerto Rico, October 1953. Puerto Rico Department of Labor, Bureau of Labor Statistics. (4) (11) (9) (10) (8) Truckdriver 428 $0.592 $0.461 (5) (10) (3) (8) (2) W atch man .426 (5) N o t e — T he numbers in parentheses indicate the rank of wage rates in each industry in relation to the hourly rates paid in other industries, from the highest to the lowest paying industry. # / « **/M p ;*/ ;/ * f \ — - - C & r '" - - *— — - ' ~c,v ALASKA U n ited within States its W. R are I ts four tim e coastline is zones longer D esp ite the w ell-deserved debunking o f A lask a as nothing m ore than a lan d o f ice and snow , it is predom inantly an A rctic and su b -A rctic region. A b o u t 80 percent of its total area is n orth o f lati tude 6 0 ° N . e o r g e there than th at of the entire continental U n ited States. The Economy and the Labor Force G and boundaries. ogers P erm an en tly frozen ground (perm a frost) underlies abou t area. T h e su m m er season, or the tim e between 60 percent o f the total killing frosts, is abn orm ally short, varyin g from 165 days at K etch ik a n to only 17 days a t B arrow , w ith the season over its largest lan d area (the A laska’ s economy, its population, and its labor force are all products of its geography. Y u k o n B asin ) ranging from 54 to 90 days. A n A rctic and su b-A rctic region, it is a b ig territory com posed E c o n o m ic o f several distinct regions, relatively rem ote from each other. I ts econom y is highly seasonal, depending prim arily upon the production o f raw and semiprocessed m aterials and upon Federal spending, m u ch o f w hich is related to A la sk a ’s strategic defense location. The population is A lask a is an econom ically underdeveloped area, which is im p ortan t prim arily as a source of raw and sem iprocessed m aterials and as a strategic m ilitary outp ost. T h e econom ic base is narrow, highly seasonal, and regionally varied. D esp ite the fa ct th at it is physically a part of sparse and fluctuates sharply, as does the labor force, in response to seasonal factors and the course C h a r a c te r is t ic s the N o rth A m erican continent, A la sk a is econom i cally an island and its trade and com m unica of Federal spending. tions w ith the continental U n ited States are those of an overseas area. P h y s ic a l C h a r a c te r is t ic s Its one land transportation link w ith the continental U n ited A la sk a is big. T h is is the m o st obvious gen eralization w hich can be m ad e abou t the T erri m uch to ry . wildernesses o f C an ada. Its total area of 5 8 6 ,4 0 0 square m iles is equal to nearly one-fifth the total area of the 48 S tates. Because o f its size, A la sk a States is the long and difficult route to G reat F alls, M o n t ., of it through the relatively uninhabited T h e m ain stream s of com m erce and m igration are b y sea and air. cannot be treated realistically as a single region b u t m u st Prices. be considered as several distinctive regions, each explain the first econom ic fa ct brought h om e to Seasonality and rem oteness com bine to w ith differing physical, clim atological, and natural any new com er to A la sk a : the costs of doing busi resources features. T h e m o st com m on geographi ness and of living in the T erritory are very high. cal division is six regions: Southeastern, South In recent years, there have been im p ortan t reduc Central, and Southw estern A la s k a ; the Y u k o n tions in price levels because of population increases, P lateau (or the In terio r); the Seward P eninsula; stim ulation and the A rctic Slope. in A lask a can also be characterized as a rem ote and relatively isolated area. A nchorage, of distribution com petition, and and im p rovem en t transportation, but A lask a m u st still be characterized as a h igh-cost region. the Reliable data on prices are v ery sk im p y, b u t for largest city, is 1,450 m iles from Seattle and 2 ,5 0 0 consum er prices at least the B ureau o f L a b o r m iles from M in n eap olis b y direct airline; 2 ,6 3 3 Statistics of the U n ited m iles from G reat F alls, M o n t ., b y ro a d ; and 1,800 L ab o r collected d ata and published indexes for m iles from Seattle b y ship and railroad. A la sk a ’s selected A lask an cities for M a r c h 1945 and F ebru various sections are rem ote one from anoth er; ary and D ecem b er 1951, in its extrem e extent, it approxim ates the east- im pressions w est, worker in the T erritory. n orth-sou th spread of the continental of the S tates D e p a rtm e n t of which traveler, docu m en t the businessm an, (See table 1.) 29 and 30 . 1— T able services R elative differences in costs o f goods, re n ts , and in selected A la sk a n cities and Seattle [Costs in Seattle=100] supplies are shipped in from area. the P u get Sound A ccording to a recent stu d y , “ of a to ta l of abou t 6 ,0 0 0 m en presently em ployed in the fishing City and date All items Apparel Housing 1 Foods Other in dustry in the Bristol B a y area, 4 ,0 0 0 are brought in from M arch 19^5 Juneau.......... ................... Anchorage____________ Fairbanks_____________ the U n ited S ta te s; 1 ,000 are recruited 115 141 148 130 153 164 113 131 137 107 160 157 107 124 132 from other parts of the T err ito ry ; and on ly 1 ,000 140 147 137 147 119 125 213 217 125 130 com es generated with A lask a are divided betw een 122 129 111 129 116 are provided lo c a lly ." 2 T h e degree to which values produced and in February 1961 Anchorage____ ________ Fairbanks_____________ Decem ber 1951 resident and nonresident interests is difficult to docu m en t. Ketchikan...................... A lth ou gh the harvest o f the rich fu r- seal resources on the Pribilof Islan ds is p robably 1 1945 figures represent average rental for 4- and 5-room dwellings meeting certain standards, plus fuel, utilities, and housefurnishings; 1951 figures, rent for 2- and 3-room dwellings meeting certain standards, plus fuel, utilities, and housefurnishings. n ot a typical a ctiv ity , it has been analyzed in Source: Relative Differences in the Cost of Equivalent Goods, Rents, and Services in Three Alaska Cities and Seattle, March 1945, Bureau of Labor Statistics, U . S. Department of Labor, M ay 20, 1946. Relative Differences in the Cost of Consumption Goods, Rents, and Services in Tw o Alaska Cities and in Seattle, W ash., February 1951, U . S. Department of Labor, April 26, 1951. Relative Differences in the Cost of Consumption Goods, Rents, and Services in Ketchikan, Alaska, and Seattle, W ash., December 1951, U . S. Department of Labor, February 28,1952. supervision and m an agem en t, b u t the operation is Its physical char Trade W ith the United States. acteristics have also fostered A la sk a 's econom ic dependence upon the U n ited States. these term s. It is carried ou t under Federal adm inistered from the Seattle office of the F ish and W ild life Service rather than from the A lask a office of the Service. T h e raw furs are transported to St. L ou is for final processing and sale, and the G o v ern m en t's share of the proceeds is deposited in the U n ited States T reasu ry at W a sh in g to n . T h e statis D u rin g 1951, the raw -fur value of the U n ited tics o f trade betw een A lask a and the continental S ta tes' share of the pelts and the value of b yp ro d U n ited States strikingly reveal A lask a as a source ucts cam e to $ 2 ,7 0 2 ,9 5 9 (total value, including the o f raw and semiprocessed m aterials and its lack of share of fur processors and self-sufficiency and dependence upon the outside States, w as, of course, greater). for its consum er and capital goods. T h e depend represents the value generated within the T erri ent relationship w as m arked in the im balance of tory b y the harvesting and prelim inary prepara auctioneers in the T h is am ou n t trade from 1868 to 1940, inclusive— from A lask a tion of the pelts on the P ribilof Islan ds. to the U n ited S tates, $2.3 b illion; and from the benefit to the T erritory, in the form o f wages and U n ited States to A lask a , $ 1 .2 billion. U n ited S tates entry into W it h the W o r ld W ar II, “ balance o f tr a d e " sh ifted ; from 1941 through the T h e total salaries paid to resident workers and m edical care and educational facilities provided these w orkers and their fam ilies b y the Federal G o v ern m en t, 1947 (the latest year for which data are available), was estim ated at on ly $ 2 0 0 ,0 0 0 for the year 1 9 5 1 .3 A la sk a 's exports to the States, averaging $7 8 .7 T h u s, the region directly benefited from or re m illion a year, nearly m atch ed the $ 8 0 .5 m illion tained o n ly slightly m ore than 7 percent o f the average value of its im p orts.1 value produced there. Nonresident Interests. k a 's lack A n o th er earmark o f A la s of self-sufficiency is the nonresident ownership of m u ch of its econom ic a ctiv ity . trem e seasonality, rem oteness, and high Ex costs Federal Spending. I t is n ot surprising, given the geographical position of the T errito ry, th at m ili tary construction and other F ederal spending are the m ajor factors in determ ining the level of favor the use of seasonally im ported labor and econom ic activ ity and the population grow th in extractive A lask a tod ay. a ctiv ity over processing, while dis couraging the accum ulation o f local supplies o f labor, capital, and m anagem ent talent. The B ristol B a y fisheries are an exam ple of an in dustry which is alm ost w h olly owned and operated b y interests outside the region. C an nery and fishing F or the 13 years 1 9 4 0 -5 2 , Federal * 1 Compiled from various issues of the M onthly Summary of Foreign Com merce of the United States, U . S. Department of Commerce, Bureau of the Census. * Southwestern Alaska, Interior Report N o. 5, Alaska District, Corps of Engineers, U . S. Arm y, January 20, 1954 (p. 35). * John L. Buckley, Wildlife in the Economy of Alaska, University of Alaska Press, February 1955 (p. 21). 31 defense construction expenditures for A lask an T able 2.— F ed era l projects have averaged $ 1 1 4 .3 m illion per y ear.4 been substantial defense-justified Federal Fiscal year civilian construction in the postw ar period, par ticularly rehabilitation o f the A lask a R ailroad, expansion and im p rovem en t of road and airfield sy stem s, and financing co m m u n ity facilities. F or the fiscal years 1 9 4 8 -5 4 , Federal obligations for all purposes in A lask a averaged $ 4 1 3 .2 m illion a year, the D ep a rtm en t of D efen se accounting for $ 2 7 0 .4 m illion of the total. B eginning num ber of in 1941, (See table 2 .) Federal im p ortan t direct spending econom ic h ad a effects. T h e “ balance of trad e” w ith the U n ited States shifted alm ost overnight from one in which the fiscal yea rs [In millions of dollars] In addition to direct m ilitary construction, there has A la s k a , obligations in 1 9 4 8 -5 4 Department of Defense Total Other Federal agencies 1 1948_________ ______________ 1949............................. ............. 1950....................... ................... 1951_______________________ 1952.......................... ............... 1953 *______________________ 1954 2 ____________ $200.5 251.6 137.2 607.5 414.9 679.5 600.9 $103.9 135.3 1.9 455.9 266.0 512.9 416.9 $96.6 116.3 135.3 151.7 148.9 166.6 184.0 Total______________________ Annual average................ . 2,892.2 413.2 1,892.7 270.4 999.4 142.8 1 Excludes $86,500,000 in F H A mortgage insurance on housing develop ments. 2 Estimated. N o t e .— Because of rounding, sums of individual items do not necessarily equal totals. Source: Prepared b y the Federal Bureau of the Budget at the request of Governor’s Office, February 1954. value of im ports was little m ore than h alf the activities, m in in g and the fur trade are h ighly value of exports to one in w hich exports and unstable cyclically, and the last three are relatively im ports were rough ly equal, as already indicated. undeveloped. A la sk a ’s construction industry catapu lted from a T h e A lask a n econ om y is n o t an integrated o n e ; m inor econom ic a ctiv ity to the leading industry. rather, it is a collection of far-flung and relatively T h e new job s generated b y m ilitary construction isolated centers of varied econom ic a ctiv ity tied and the servicing of a sizable m ilitary garrison together in rather tenuous fashion a t the political contributed to and popu lation . (See chart 1.) F ederal econom ic m arkets a spectacular spending effects. by in A la sk a ’s even m ore in A la sk a ’s data are A lask an econ om y, b u t for three econom ic regions selected business to illustrate the econom ic sectionalism : com m unication and transportation system s than could h ave been accom plished otherwise. Structure o f the E con om y. definition of necessity stim u lated greater expansion im provem ents by and nom ic distribution and transportation of goods. and levels Therefore, presented in table 3, n ot on ly for the “ to ta l” basic expansion population adm inistration an yth in g else. indirect grow th m ade possible the m ore efficient and eco M ilita r y public m ore than had The created rise T h e nature and struc ture of the A lask a n econ om y cannot be described in term s of “ gross Territorial p ro d u c t,” b u t on ly in term s of the “ basic eco n o m y ” — th at dyn am ic portion of the econom y which prim arily deter m ines the level o f to ta l incom e and em p loym en t. 1. Southeastern Alaska, separated from the rest of the country by Canadian territory and the impenetrable bar rier of the great Malaspina Glacier and the towering St. Elias Range. 2. Central and Interior Alaska, roughly the area south of the Brooks Range and east of longitude 151° W. With the exception of Kodiak Island, the centers of development and population are laced together with a well-developed road system, and the economic unity of the region is furthered by the fact that the principal defense establish ments are located there. 3. Northern and Western Alaska, the remainder of the Territory. P o p u la t io n D iscou n tin g the construction in dustry, which is derived largely from F ederal expenditures, A la sk a ’s L ike its econ om y, the com position and nature econom ic base is extrem ely narrow, resting pri of m arily upon fishing, and to a m u ch sm aller degree differences. upon m in in g; the fur trade, the forest products predom in antly in dustry, seasonal. tourist expenditures, and agriculture com bined account for less than 10 percent of the to ta l. (See table 3.) A ll are h ighly 4 Biennial Report, 1951-53, Alaska Development Board. 371655— 56-------4 seasonal A la sk a ’s population have m arked sectional M o reov er, the population is sparse, urban, unstable, and highly T h e 1950 census enum eration of a population of 128,643 in A lask a , including 2 0 ,4 0 7 m ilitary per sonnel, represents only 0 .2 2 5 person per square 32 m ile of land area as com pared w ith the U n ited tion, b u t b y S tates average of 50.7 persons per square m ile. T h e num ber of m ales per fem ale— one index of 1950 it accounted for 72 percent. N e a r ly h alf o f the A lask an people live in tow ns the relative stab ility o f a population— from 1920 and cities w ith populations of 1,000 or m ore, 2 6 .6 to 1950 ranged from 1.03 to 1.08 am ong the n ative percent in places w ith 2 ,5 0 0 or m ore. population, and from 2 .82 to 1.86 am ong w hite inhabitants. A lth o u g h the to ta l n ative population has re m ained relatively stable, the to ta l w hite popula In discussing A la sk a ’s popu lation , the m o n th tion has been su bject to drastic ebbs and flows of as well as the year m u st be specified, so great is m igration. In 1867, there w hite persons in A lask a . were probab ly the 500 seasonal variation. The peak population ranged from 15 to nearly 32 percent above the A ccordin g to data from low point in the years 1 9 5 0 -5 4 (table 4 ). the Census of P opulation for A lask a , thereafter D a t a from the 1950 census for the three econom ic the w hite population first increased rapidly to 1900 (3 0 ,4 9 3 ) follow ing the gold stam pedes, rose regions specified again sectional differences in the com position of A la sk a ’s to 1910 (3 6 ,4 0 0 ), (2 7 ,8 8 3 ), changed then declined little to 1929 to 1920 previou sly population (table 5 ). (2 8 ,6 4 0 ), again illustrate the wide T h e y underline the neces increased su bstan tially to 1939 (3 9 ,1 7 0 ) follow ing sity for going beyon d d ata for the T erritory as a the revival of gold m ining, and rose sharply to whole whenever possible. 1950 (9 2 ,8 0 8 ) as a result o f the m ilitary construc of population figures for 1950 and 1939 indicated tion m arked regional differences. program . In 1939, the w hite population T h e total popu la tion rose b y m ore than 77 p ercent; in the S o u th . represented on ly 54 percent o f the total popu la T able 3.— A la s k a ’s Sim ilarly, com parisons in co m e f r o m 'production a nd other activities , b y region 1 [Annual average, 1948-53] Economic regions Total Southeastern Alaska Economic activity Central and Interior Alaska Northern and Western Alaska Amount (thousands of dollars) Percent Amount (thousands of dollars) Percent Amount (thousands of dollars) Percent Amount (thousands of dollars) Total basic economy________________________ _____ ______ ___________ $201, 268 100.0 $55,394 100.0 $109,987 100.0 $35,887 100.0 Natural resources products................... .................................... ................. 130,632 65.0 46,494 84.0 55,846 50.7 28, 292 78.9 Fish and wildlife products........................................................ ................. 102, 582 51.0 42,284 76.4 37,178 33.7 23,120 64.5 Commercial fisheries 1 2------------ -------- ----------------------------------------Furs 3*__________________________________________________ . . . . .. Other tangible wildlife values *__________ _____ _____ ________ Mineral products 8................................................................................. ......... Forest products 6......................... ......................................................... .......... Agricultural products 7------------------------------------------------ -------------Tourist expenditures 8___ ___________________________________ ______ Construction 9.......................................................................................... ......... 89,857 4, 675 8,050 20, 236 5,575 2,239 6,336 64, 300 44.7 2.3 4.0 10.1 2.8 1.1 3.1 31.9 40,307 842 1,135 61 3,789 360 3,900 5,000 72.8 1.5 2.1 .1 6.8 .7 7.0 9.0 31,984 594 4,600 15,067 1, 761 1,840 2,341 51,800 29.0 .5 4.2 13.7 1.6 1.7 2.1 47.2 17, 566 3,239 2,315 5,108 25 39 95 7,500 49.0 9.0 6.5 14.2 .1 .1 .2 20.9 1 For definition of regions, see accompanying text (p. 31). 2 Wholesale value, from annual statistical digests of the U . S. Fish and Wildlife Service, entitled “ Alaska Fisheries and Fur Seal Industries.” 3 Raw value. “ Land furs” from Fish and Wildlife Service game and fur district records; “ Pribilof fur seal,” net proceeds transferred to General Fund reported in Combined Statement of Receipts, Expenditures and Balances of the U . S. Government, U . S. Treasury Department. « Estimated largely from data in Wildlife in the Economy of Alaska (see text footnote 3); also includes expenditures b y nonresident sportsmen for fiscal year 1952 and minimum food value of take b y resident hunters and native peoples, value of reindeer and ivory (computed from annual reports of the U . S. Fish and Wildlife Service and Alaska Native Service estimates of amount of wildlife products consumed and value of products). fi Includes value of sand, gravel, and building stone. Total from Bureau of Mines annual area reports entitled “ Mineral Production in Alaska” ; regional breakdown prepared b y Territorial Department of Mines. s Value f. o. b. mill. Estimated on basis of U . S. Forest Service reports of physical volume of lumber produced, cited in Alaska Development Board’s Biennial Report, 1951-53 (p. 39); Bureau of Land Management reports on timber cut on public domain lands and average mill price of lumber (cited in annual reports of the Governor of Alaska); free use timber valued arbitrarily at $10 per M bd.-ft. 7 Includes estimated value of home consumption. Total and regional values from 1950 U . S. Census of Agriculture, Vol. 1. pt. 34-1, and Alaska Percent Agricultural Experiment Station, Palmer, Alaska, and annual reports of Governor of Alaska. 8 Estimated on basis of average annual “ touristry revenue” for 1951-53 (A Recreation program for Alaska, National Park Service, 1955, pp. 27-29); regional breakdown from data in Analysis of Alaska Travel W ith Special Reference to Tourists, b y W . J. Stanton, U . S. National Park Service, 1953. 9 Total from Employment Security Commission annual reports to the Governor of Alaska; regional breakdown on basis of location and total value of projects (from materials in Construction Contracts Awarded in Alaska, 1947-52, Seattle First National Bank, Oct. 14,1953; Value of Building Per mits in Alaska, 1949-53, Alaska Development Board; and miscellaneous news items). This is not a particularly satisfactory basis for the allocation of wages, as the ratio of labor costs to total costs varies greatly by type of construction. N o t e .— The transaction level for which valuation is shown corresponds roughly to the amount of processing and market preparation done in the Territory. For example, the value of raw furs is used because virtually all processing is done outside Alaska. D ata are not shown for manufacturing as a category because value added to raw materials is negligible except for commercial fisheries and forest products. For construction, wages paid is used because most equipment, supplies, and materials were purchased out side Alaska; where Alaskan products were purchased, their value is already counted (in forest, mineral, or agricultural products). 33 eastern region, the increase w as less than 12 per the principal em ployers, b u t labor-force a ctiv ity cent and, in the N orth ern and W estern region, is still extrem ely seasonal. nearly 22 percent, b u t the n um ber o f people in A n y analysis of A la sk a ’s labor force is ham pered C en tral and In terior A la sk a m ore th an tripled. b y a dearth of statistical m aterial on all b u t th at portion o f the labor force covered b y the unem L a b o r F o rc e a n d E m p lo y m e n t p lo y m en t insurance (U I) program . Census data are available o n ly decennially— O ctober 1, 1939, T h e rapid increase in the size of A la sk a ’s labor and A p ril 1, 1950, being the dates of the tw o m o st force during the past 15 years has been accom recent censuses. panied b y drastic changes in its industrial com seasonality of position. dates u nrepresentative; in fact, th ey are n o t even G o vern m en t and industries prim arily dependent upon Federal spending h ave becom e Chart 1. M o reov er, the abn orm ally high A la sk a ’s econom y m akes com parable. A la s k a 's Population, Total and M ilita r y , M o n th ly A v e ra g e , 1 9 4 0 -5 4 these 34 T able 4.— A la sk a n civilian p op u lation C overed em p loym en t in 1952, w ith a peak of 4 9 ,9 9 5 and a low of 1 9 ,7 0 7 , averaged 3 2 ,9 0 1 , and Year Low (January!) Peak (August 1) 101,000 112,000 123,200 142,000 151,900 123,900 140,900 162, 500 174,300 174, 400 1950..................... ......... 1951..................... ......... 1952......... - ............... 1953............................. 1954......................... — Average 1 total wages paid averaged $ 1 7 ,1 3 2 ,0 0 0 per month.® T h u s, b o th in term s of num bers and earnings, 111,000 123,000 141,000 155,000 159,000 govern m ent workers represent an im p ortan t segm ent o f the total labor force. T h e period 1 9 4 0 -5 4 was one of generally rising 112-month moving average, computed by the Bureau of the Census. em p loym en t Source: Estimate of Alaska Population, Jan. 1 ,1950-July 1,1953. Released cooperatively by Office of the Governor, Alaska Development Board, and Bureau of Vital Statistics, Juneau, Aug. 1, 1954; and Estimate of Alaska Population, July 1, 1953, to June 30, 1954, Report N o. 3, released by Alaska Resource Development Board, in cooperation with Office of the Governor, Bureau of Vital Statistics, Alaska Department of Health, Juneau (undated). and w ages. T o ta l w ages paid to workers in covered em p lo ym en t increased m ore than 750 percent, in contrast to the 150-percen t rise in the n um ber of workers. (See table 6.) T h u s, average annual earnings for these workers T herefore, this article relies principally upon statistics for “ covered” the the U I of the program labor rose by 240 percent— from abou t $ 1 ,8 5 0 to nearly force $ 6 ,3 0 0 . T h is striking increase reflects n o t on ly as an index of the fa ct th at A lask a has been, in general, a labor trends and characteristics of the total labor force. shortage area, b u t also such econom ic and physical In A pril 1950, covered em p loym en t represented characteristics as the seasonality of e m p lo ym en t, about 48 by portion percent o f total civilian reported in rem ainder the census o f A pril w as com posed 1, alm ost em p lo ym en t 1950. the difficulty of inducing labor to m o v e to a far The entirely northern coun try, the high cost of living, and the of difficulties and cost of m ain taining ties w ith G o v ern m en t and self-em ployed workers (including relatives som e fisherm en). average w eekly earnings, see p. 1389 of this issue.) in the S tates. (F or a discussion of T h e principal group of workers n o t covered b y B u t all A laskan s are n ot h ighly paid and well off. the u n em p lo y m en t insurance program during the Census data show th at in 1949 the m edian incom e years for all persons 14 years of age and over who earned 1 9 4 0 -5 4 D u rin g the were peak govern m ent m o n th of 1952, em ployees. there were a n y incom e was $ 2 ,0 7 2 and th at, for nonw hite 1 4 ,4 3 6 civilian govern m en t em ployees in A lask a , A laskans, who m ade up abou t a quarter o f the 1 1,852 being Federal civilian em ployees, and the total, the m edian was on ly $7 8 4 . total civilian govern m en t em ployees’ payroll for th a t m o n th low m o n th , totaled am oun ted to g overn m ent 1 2 ,0 4 6 T able 5.— and the $ 6 ,2 5 7 ,7 0 0 . civilian payroll F or the em p lo ym en t $ 5 ,2 0 8 ,2 0 0 .5 B y contrast, * * W . A . Lund, A Study of Employment in Federal, Territorial, and Municipal Agencies in Alaska, Calendar Year 1952, Juneau, Employment Security Commission. « Employment Statistics, Reports and Analysis Section, Employment Security Commission of Alaska, M ay 12, 1955. D istrib u tio n o f A la s k a ’ s p o p u la tio n , b y m ilita ry sta tu s, race, a nd place o f resid en ce, b y regio n s,l 1 9 5 0 Economic regions Total Southeastern Alaska Population category Number of persons Percent of total Num ber of persons Percent of total Central and Interior Alaska Number of persons Percent of total Northern and Western Alaska Num ber of persons Percent of total Total...................................................................... 128,643 100.0 28,203 100.0 71,389 100.0 29,051 100.0 M ilita ry status M ilitary.................. ............. ............................... Civilian................... ............................................. 20,407 108,236 15.9 84.1 660 27,543 2.3 97.7 16,236 55,153 22.7 77.3 3,511 25,540 12.1 87.9 R ace W h ite.................................................................... Indigenous (natives).......................... ............. Other....................................................— ........... 92,783 33,884 1,976 72.1 26.4 1.5 19,655 7,929 619 69.7 28.1 2.2 64,095 6,085 1,209 89.7 8.5 1.8 9,033 19,870 148 31.1 68.4 .5 50,910 57,326 47.0 53.0 18,130 9,413 65.8 34.2 2 30,980 24,173 56.1 43.9 1,800 23,740 7.1 92.9 P lace o f residence 2 Civilian population residing in: Places of 1,000 or more_______________ Places of less than 1,000....................___ 1 For definition, see text, p. 31. * Elimination of military in places of 1,000 or more estimated in some cases. * Includes all places in the immediate environs of the citv of Fairbanks. Source; U . S. Census of Population: 1950, Vol. 1, and Bureau of the Census worksheets on general characteristics of 1950 population b y recording districts. 35 total earnings of workers covered by the UI program averaged $ 4 ,6 3 3 in the sam e year. A substantial group of A lask an s were receiving such low incom es th a t the President of the U n ited T h e wide incom e differences were due in part States, in the w inter o f both 1953 and 1954, de to the inclusion of m ilitary personnel in the census clared the regions in which th ey resided as m a jo r d ata, b u t m ore significantly th ey reflected the disaster a rea s.7 A t the sam e tim e, a substantial (who group of A laskan workers em ployed in construc m ake up m o st of the “ n on w h ite” category) had tion, G overn m en t, and secondary industries were lim ited degree to which n ative A laskan s been b rou ght into the regular labor force. No data are available on average incom e b y region, b u t the effect o f the regional distribution of eco nom ic a ctiv ity has been apparent in recent years. C hart 2 . 7 On October 30, 1953, and again on November 10, 1954, President Eisen hower notified the Governor of Alaska that, under the authority of Public Law 875 (81st Cong.), he had declared that a major disaster existed in those areas of Alaska which were adversely affected by fishing failures (most of coastal Alaska from Bristol Bay to Ketchikan). Percentage Distribution of A v e ra g e M o n th ly E m p lo ym en t in A la s k a , b y Industry Division, 1 9 4 0 , 1 9 4 3 , and 1 9 5 4 PERCENT 1940 '43 '54 UNITED STATES DEPARTMENT OF LABOR bureau of ia bo r statistics 1940 '43 '54 1940 '43 '54 1940 '43 ’54 S o u rce : 1940 ’43 '54 E m p lo y m e n t S ta tis t ic s , R e p o rts a n d A n a ly s is S e c tio n , E m p lo y m e n t S e c u r ity C o m m is s io n o f A la s k a . M a y 12. 1 95 5. 36 T able 6.— A verag e n u m ber o f w orkers and wages in covered em p lo ym en t in A la sk a , 1 9 4 0 - 5 4 T able 7.— S ea son a l variation in covered A la s k a , selected yea rs Num ber of workers Total wages (thou (monthly average) sands of dollars) Year $20,160 36,792 51,384 49,124 77,177 47,728 46,373 99,646 102,964 106,990 120, 676 186,579 205, 588 192, 569 171,774 10,916 16,566 20,540 15,833 18,169 13,780 15,408 24,784 23,479 23,089 25,208 32,755 32,901 30,681 27,331 1940_______ _______ __________________ 1941_______ _______ ___________ _____ 1942_________________________________ 1943 ________________ ______________ 1944 _______________________________ 1945 1____ ___________________________ 1946 .............................. - ............ 1947__________________________ ______ ____________________________ 1948 1949 _______________________________ 1950 ______________________________ ____________________________ 1951 1952 ___________ ______ _____________ 1953_________________________________ 1954_________ _____ - ......... — - ................ em p lo ym en t in High Low Year Employment M onthly average employ ment 1940_____ 1950_____ 1951.......... 1952_____ 1953_____ 1954_____ 10,916 25,208 32,755 32,901 30,681 27,331 As per N u m cent of ber of month workers ly aver age M onth January. -_ .d o ____ ___do____ ___do........ _._do........ ___do........ 5,870 14,579 18,199 19,707 20,411 19,692 53.8 57.8 55.6 59.9 66.5 72.1 Employment As per N u m cent of ber of month workers ly aver age M onth July____ Au gust.. . . d o ____ July........ . .. d o ____ A u g u s t- 17,716 38,153 49,538 49, 995 45,302 38,959 162.3 151.4 151.2 152.0 147.7 142.5 i Coverage was extended, effective July 1, 1945, from employers of 8 or more to employers of 1 or more. N o t e — In 1945, coverage was extended from employers of 8 or more workers to employers of 1 or more. Source: Employment Statistics, Reports and Analysis Section, Em ploy ment Security Commission of Alaska, M a y 12,1955. Source: Employment Statistics, Reports and Analysis Section, Em ploy ment Security Commission of Alaska, M a y 12, 1955. receiving relatively high incom es. M o reo v er, the effort, and was 27 percent in 1954. M in in g em Territorial and Federal G overn m en ts for m a n y p lo y m en t, on the other hand, decreased from 26 years percent of covered em p loym en t in 1940 to abou t h ave operated extensive public welfare program s in certain areas to keep the low -incom e 6 percent in 1954, and salm on canning from ap fam ilies alive. proxim ately 27 percent in 1940 to 9 percent in T h e seasonality of econom ic a c tiv ity is illus trated v ery clearly in data for covered em p lo y 1954. (See chart 2.) A lask an em p loym en t is still in a stage of transi m en t (table 7 ), although in recent years the varia tion— possibly tion betw een extrem es has tended to be relatively recent auth oritative forecast predicted sm aller. to greater future stab ility. A th at b y 1962, although average em p loym en t in construc T h e industrial com position of A la sk a ’s labor tion will drop b y abou t 4 ,4 0 0 from 1954 levels, the force has changed considerably during the p ast 15 anticipated establishm ent o f 6 new forest products years w ith the sh ift in the com position of A la sk a ’s facilities basic econom y (w hich decreased the im portance of alm ost 9 ,2 0 0 new jo b s.8 fishing, m ining, the fur trade, and the forestry products m ills is expected to rise by abou t 1 ,1 0 0 ; and lum bering industries as construction and other in logging, b y 2 ,0 3 0 ; and in various supporting activities industries, b y 6 ,0 3 0 ; depending upon spending increased). Federal G overn m en t in southeastern A lask a will T h e proportion of covered em p loym en t accounted for b y the construction in dustry rose from abou t 11 percent in 1940 to over 38 percent in 1943, a t the peak of the war 8 Projections of Economic Activity in Alaska for the Period 1954-63, Bureau of Employment Security, Washington, D . C . Full text published in Senate Journal, Extraordinary Session of the Twenty-second Legislature of the Territory of Alaska, Juneau, April 4, 1955 (pp. 11-18). “ A la sk a w as purchased from R u ssia for $ 7 ,0 0 0 ,0 0 0 in 1867 and the first year after purchase produced alm ost enough revenue from fu r to p a y the original purchase p rice.” Laurence Stephenson, Organizing Federal Employees on the Alaska Railroad American Federationist, June 1931, pp. 718-719). generate E m p lo y m e n t in forest {in ALASKA addition, abou t 700 em ployees, although exem pt from classification, were paid wages rough ly cor The U. S. Government As an Employer responding to the classified p a y scale and abou t 600 were paid under provisions o f the P ostal P a y A c t . W a g e -b o a rd em ployees generally are in “ blue collar” occupations requiring varyin g degrees of m echanical and m anu al skill, whereas classified em ployees typ ically w ork in clerical, professional, Jo se ph T. F l a k n e and executive occupations. Because a m uch larger num ber of Federal agencies in A lask a em p loy w hite-collar workers than w age-board em ployees, those agencies tend Federal em p loym en t picture. to dom inate the Since W o r ld W a r I I and until A u g u st 1, 1955, b oth groups in A lask a T he U n ited States G overn m en t dom inates the were exem pt from the selection procedures of the em p loym en t situation in A lask a to an unusual com petitive degree. civil-service statu s b y reason of em p loym en t in A ccordin g to a U . S. C ivil Service C o m service; th ey could n ot achieve m ission tabulation , there were over 15,0 0 0 Federal A lask a. em ployees in the T erritory as of June 30, 1 9 5 4 ; cies in A lask a began th ey were estim ated to constitute som ew hat less positions than m o st Federal jo b s h ave already been converted. one-quarter of the total working force.1 H ow ever, a large proportion of other workers are dependent upon Federal expenditures for their jobs. B eginning in A u g u st, G overn m en t agen to the a program of converting com petitive civil service, and T h e large n um ber of w age-board em ployees in June 1954— 6 ,8 2 9 — indicates the extent to which the Federal G ov ern m en t is carrying on industrial- The D ep a rtm en ts of D efen se, Interior, and C om m erce, in th at order, are the three largest F ederal em ployers in the T erritory. T ogeth er typ e operations in the T erritory. D efen se had nearly 3 ,6 0 0 w age-board em ployees, m o stly en gaged in the m aintenance, repair, and servicing of th ey accounted for 1 3,751, or 91.3 percent, of all huge Federal em ployees in A lask a in m id -1 9 5 4 . (See abou t 1,800 w age-board workers to run the A lask a M o s t of the D efen se D e R ailroad and used m a n y such em ployees in road accom pan ying table.) m ilitary installations. Interior em ployed p a r tm en t’s 6 ,7 0 0 civilian em ployees worked for the building and road-m ainten an ce A r m y and A ir C orps in the Anchorage and F air operate the A la sk a banks areas. D e p a rtm e n t o f C om m erce uses w age-board w ork T h e m a jo rity of D ep a rtm en t of the Road occupations C om m ission . to The Interior workers were em ployed b y the A laska ers in operating and m aintaining federally con R ailroad and the A lask a R o a d C om m ission . trolled airport installations and airways. The 1,600 em ployees of the D ep a rtm en t of C om m erce perform ed their duties for the m o st part in con E m p lo y e e A ttitu d e s nection with the work of the C ivil Aeronautics A s is the case w ith a n y large-scale em ployer, A dm inistration. “ U n cle S a m ,” in his role as em ployer in A lask a, C la s s if ie d a n d W a g e -B o a rd E m p lo y e e s Classified em ployees, whose hours and condi appears to guises. T o som e, he is a good em ployer, offering F ederal workers in m any a high degree o f jo b security, payin g high wages, tions of w ork are largely fixed b y Federal statu te, establishing num bered 6,8 9 6 on June 30, 1954. providing generous fringe benefits. A nearly equal different reasonable scheduled hours, and T o som e, he num ber of w age-board em ployees, while generally seem s to ignore the standard of equal p a y for covered b y Federal statu tes governing sick and equal work, to be perhaps too m uch addicted to annual leave, accident com pensation, retirem ent, and u n em p loym en t com pensation, had their wages fixed b y adm inistrative action of the agency concerned rather than b y Federal p a y acts. In i The Alaska Territorial Em ploym ent Service estimated that in June 1952 there were 60,500 employed workers in the Anchorage, Fairbanks, Juneau, Ketchikan, and Petersburg areas of whom 12,800 were Government workers, including municipal employees. Private employment has decreased since 1952, but Federal employment apparently has not. 37 38 P a id civilian em p lo ye es in executive branch o f F ed era l G overnm ent in A la s k a , b y a g en cy , com p en sa tion a u th o rity , cmd resid en ce, J u n e 8 0 , 1 9 5 4 rates set b y Congress a differential to com pensate for the higher cost of living. C u rren tly, the dif ferential, w hich is determ ined b y the C ivil Service Under Classifica tion Act C om m ission , is the m a x im u m perm itted b y law — Under wage board Other Fed Residents of eral Residents of T otal Territory Territory em ployT otal Total ees N u m Per N u m Per ber ber cent cent Agency 25 percent. T h e differential is n ot used in co m puting the overtim e rate or in determ ining re tirem ent benefits. Since a 1953 ruling of the In ternal R even u e Service, the classified co st-o fliving differential m a y be excluded from gross T otal__________________ 15,057 6,896 1,500 21.8 6,829 3,070 45.0 1,332 incom e for incom e tax purposes. Defense_______________ Interior_______________ Commerce___________ Post Office____________ Agriculture.......... Justice. _ _____________ Treasury, _________ .. H ealth, Education, and Welfare________ Veterans A d m in is tration_________ __ . Housing and Home Finance Agency____ Federal Communica tions Commission. Labor____ _____ ______ _ Selective Service_____ C iv i l A e r o n a u tic s Board_______________ Other__________________ 2.1 3,566 58 49.5 2,683 2, 555 486 15.0 370 1.6 95.2 76.1 setting w age-board p ay rates relates th em to the 24.6 65.3 60.8 6, 749 3.183 68 5, 393 2,108 1,043 1, 609 1,123 168 626 216 30 125 144 94 154 79 128 48 79 39 47 44 28 63.6 16 16 15 93.8 9 8 8 9 8 3 2 25.0 3 100.0 8 7 8 7 1 14.3 65 59 90.8 29 28 96.6 602 626 26 10 20 40 3 On the other h and, the typical m eth od of higher wage levels prevailing in the T erritory, although different Federal agencies use different m eth ods of determ ining such relationships.2 In on ly one Federal operation, the A lask a R ailroad, are w age rates initially determ ined b y collective bargaining.3 5 In all other Federal agencies, w age- board p a y rates are set b y adm inistrative action, m o stly through agen cy-designated w age boards. I f the price of consum er goods in A la sk a were Source: Computed from data issued by U . S. Civil Service Commis sion, November 1954. no m ore than 25 percent above the price of con red tape and personnel m anuals, and to be in flicts clined to place too m u ch em phasis on his rights rates w ould arise. sum er goods in the U n ited S tates, no serious con as the representative of sovereignty. he appears indifferent to the of the problem s of and classified pay In the P anhandle cities and tow ns from K etch ik an to Juneau, studies p u b intangible lished in 1951 indicate th a t the cost of living was A laskan workers also exist in the S tates. w age-board T o others, m ore aspects of em ployer-em ployee relationships. M any betw een no m ore Federal than 25 Pacific N o rth w est. percent greater than in the D ecid ed ly higher living costs, H ow ever, th ey how ever, were found in the huge area of A lask a appear in A lask a in aggravated form because it is north and w est of the Panhandle which Alaskan s so far aw ay from W a sh in g to n , because A lask a in call the W e stw a r d .4 m a n y w ays is different, and because opinions in In February 1951, the Bureau of L ab o r S ta W a sh in g to n vary as to w h at these differences are. tistics of the U . S. D ep a rtm en t of L ab or found Federal em ployee criticism of U ncle S a m 's personnel practices in A lask a rarely extend fringe benefits. W it h to the exception of m edical care, such benefits equal or exceed the standards generally prevailing in private industry. over, the A lask a R ailroad is one of M ore the few th at consum er prices were on the average 40 percent higher in A nchorage than in S eattle, and in Fairbanks, 47 percent higher.5 T here is evi dence, how ever, th at this percentage differential has declined som ew hat since 1951. F or exam ple, Federal operations anyw here with a com prehensive because a surplus of housing currently exists in m edical care program . Anchorage T e r r ito r ia l P a y Differences I n e q u a lit ie s in w age standards as betw een classified and w age-board em ployees constitute one of the Federal G o v e r n m e n ts m o st difficult per sonnel problem s in A lask a, particularly in the area northw est o f the Panhandle. Classified em ployee salaries are determ ined b y adding to the base p a y and F airbanks com pared w ith the * The Alaska Railroad, for example, bases wage-board determinations on prevailing wages in the States plus an allowance for the higher level of consumer prices in Alaska. * Union organization on the Alaska Railroad is described in the article on Alaskan industrial relations on p. 57. 4 From both an economic and a military standpoint, the heart of the W est ward is the rail-belt area from the southern ports of Seward and Whittier to the northern terminus of the Alaska Railroad at Fairbanks, just a hundred miles short of the Arctic Circle. It includes 2 of Alaska’s largest and fastest growing cities, Anchorage and Fairbanks. * U. S. Department of Labor press release of April 26,1951. See also table 1, p. 30. 39 1951 shortage, rents, although th ey are still v ery board p a y rates for the sam e occupation existed high, have risen less in the rail-belt area since 1951 betw een than they h ave in large stateside cities, and for variations the least desirable units h ave actually decreased. F or exam ple, the A r m y and A ir Force rates for Furtherm ore, food prices are lower now than th ey skilled were in 1951. statistical L argely because of the influence agencies of the D ep a rtm en t. can be found occupations, m eth od betw een set of under Sim ilar departm en ts. a rather determ ining rigid prevailing of construction wage rates in A lask a, how ever, w ages,8 are am ong the highest w age-board rates stabilized or declining living costs h ave had little in the Territory. effect upon prevailing wages. On the blue-collar A lask a T h e C ivil Service C om m ission is aware of these R ailroad, workers are clerical as well wage-board as em ployees w age-rate discrepancies— which exist n ot only in A lask a, b u t elsewhere in the Federal service— and their wages are n ot lim ited to rates set b y and Congress plus the 25-percent differential as are legislation to elim inate th em b y centralizing w age- those of classified Federal em ployees. In rank- board determ inations in W a sh in g to n . and-file workers’ tralization w ould h ave the added advan tage of wages are $75 to $100 per m on th m ore than in the elim inating duplicate wage surveys b y the various clerical occupations, railroad classified service in A la sk a .6 is currently agencies. T h is disparity in wage rates in evitably produces considering the feasibility of Such cen Som e of the objections th at h ave been m ade to this plan are th at (1) it would require attem p ts b y Federal agencies in A lask a to increase all Federal agencies in A lask a and elsewhere to classified service privileges of one sort or another use a wage form ula resem bling th a t used b y the in an a ttem p t w age-board to and narrow private the differences from industry wage rates. A r m y -A ir F orce, on the assum ption th at it w ould fit every w age-board situ a tio n ; (2) it would Charges of overgrading in the classified service im pede are com m on. Federal agencies where it exists for w age-board subsidized. H ou sin g and subsistence are often R ecen tly the General collective bargaining in the isolated A ccou n tin g em ployees; to the per to secure a p ro m pt determ ination of w age-board the Interior r a te s; and (4) it would dilute agency responsibility agencies in the T erritory on the ground th at per for w age-board p ay rates and therefore reduce Office has taken inform al exception diem practices of D ep a rtm en t of (3) it w ould m ake it m ore difficult diem p aym en ts were being used in an a ttem p t to the degree of agency control over total operating increase the rem uneration of classified em ployees. costs in Federal in dustrial-type activ ity . Various attem p ts to obtain congressional sanc tion for an increase in the cost-of-livin g allowance for classified em ployees h ave thus far proved unsuccessful.7 U n d ou b ted ly, som ething should be done to secure greater u niform ity in w age-board, p ay-rate determ ination procedures. Possibly som e of the rem edy consists in placing carefully trained persons In spite of the availability of personnel m anu als in charge of wage adm inistration, and in requiring dealing with w age-board procedures, m a n y Federal a com m on philosophy of w age-rate determ ination agencies in A lask a do n ot operate on a basis of rather than com pletely uniform p a y rates in the com m on understanding of how w age-board deter sam e area and for the sam e occupation. m inations should be m ade. A stu dy m ade b y the D ep a rtm en t of the Interior in A lask a in 1953 showed that unreasonable variations in « These comparisons are based on an unpublished Alaska Railroad study, W age Rates and Wage Policies of the Alaska Railroad, 1948-1955, by E. M . Fitch, Paul Shelmerdine, and Harry Jones, Anchorage, 1955. 7 The Civil Service Commission, in cooperation with other Federal agencies, began in late 1955 to conduct surveys of living costs, environmental conditions, and prevailing salaries in United States Territories. The surveys are designed to provide factual information for use in determing appropriate allowances and differentials for Federal employees under the provisions of Executive Order No. 10,000, as well as in developing policies in relation to legislative proposals. The areas surveyed included Juneau, Fairbanks, and Anchorage. (Source: Statistical Reporter, October 1955, U . S. Bureau of the Budget, Division of Statistical Standards.) * The Army-Air Force methods of wage determination were described in the M onthly Labor Review, March 1954 (pp. 253-254). W o r k in g R u le s w ageIn the m ore intangible fields of working conditions, such as the handling of grievances, prom otion and d em otion , layoff and recall, and disciplinary discharge, Federal em ployees in A lask a as well as elsewhere fare less well than workers in the larger establishm ents in private industry. C ivil service procedures affecting grievances do n ot provide for such p ro m p t disposition of griev ances as do those of large segm ents of private 40 industry. provide In industry, labor agreem ents usually for p ro m pt P r o b le m s o f R e c r u it in g consideration of individual grievances b y the first line of m anagem ent and a A lask an labor shortages during W o r ld W a r I I succession of appeals to top officials w ith relatively and im m ediately thereafter necessitated an un short tim e lim its for each appeal. In the Federal usual am oun t of attention to problem s of recruit G o v ern m en t, a m ore com plicated procedure for ing. grievances is spelled ou t in personnel m anuals. been im possible w ithou t the use of thousands of Postw ar m ilitary construction w ould h ave M a n y em ployees fail to use it, how ever, either b e construction workers brou ght up from the States cause th ey are unaware of the rules or because of for the M a y -O c t o b e r season. a conviction th a t the prosecution o f a grievance the postw ar period, private em ployers custom arily through G ov ern m en t channels a t tim es can be a provided frustrating experience. Sim ilarly, Federal agencies filled perm anent posi Furtherm ore, in the case transportation In the first part of to and from A lask a . are veterans, tions in A lask a w ith stateside recruits under con G overn m en t appeal procedures perm it final resort tract for lim ited periods, w ith transportation paid o f the num erous em ployees who to the centralized au th ority o f the C ivil Service to A lask a and a guarantee of return transportation C om m ission . upon satisfactory com pletion of contract. Considering the size of the Federal G overnm en t, D u rin g the la st 10 years, the labor m arket a quick decision is im possible under these cir situation in A lask a has undergone a revolutionary cum stances, particularly if the case is appealed. change. T h e illustrations which follow relate to A lask a b y the A lask a R ailroad, the labor pool has becom e In som e areas, particularly th at served b u t are b y no m eans unique. One Federal agency so large th at som e private em ployers and som e in A lask a discharged an em ployee for cause, and Federal agencies now do alm ost all of their recruit m ore than a year later was still fighting to m ain ing in the T erritory. tain its decision before the C ivil Service C o m workers generally p a y their own transportation to m ission. T h e discharge was sustained, b u t the Even seasonal “ outside” and from A lask a and get their jobs in A lask a em ployee was k ept in a state of uncertainty for rather than in the States. m a n y m on th s. of workers in the spring, u n em p loym en t rather ruling of reversed. In another instance, a discharge W it h the im m igration even tu ally than a labor shortage has been characteristic of H ow ever, b y the tim e final action of A lask a in the p ast 2 or 3 years, ju st as it was, on an Alaskan agency was the appeal was taken, the em ployee had accu a sm aller scale, prior to W o r ld W a r I I . m u lated a bill for retroactive p ay for m ore than end of A p ril 1955, tw o-thirds of the 3 ,0 0 0 u nem $ 5 ,0 0 0 . ployed persons in A n chorage and approxim ately I f the G overn m en t, under existing s ta t A s of the utes, could select and follow the m o st expeditious three-quarters of the 1,875 unem ployed in F air grievance procedures of private industry, Federal banks were m en . procedures m igh t be trem endously im proved. T errito ry ’s T h e A lask a R ailroad is the only Federal agency in A lask a th at has spelled out grievance procedure, In the early m onths of 1955, the u nem p loym en t com pensation fund becam e practically in solven t.9 N eith er private in dustry nor G overn m en t em prom otion, p loying agencies h ave com pletely adjusted th em layoff, and recall rules in agreem ents signed w ith selves to this change in the A laskan labor m ark et. union representatives of em ployees. T hese rules W h ile it is true th at the great m a jo rity o f new follow the practices of unionized p rivate industry. Federal em ployees in A lask a are now recruited in discharge m achinery, and seniority, T h e y h ave been found so desirable th at A lask a the T erritory, notions of labor shortage h ave per R ailroad officials, convert of sisted in the W a sh in g to n headquarters of som e proposals to Federal R a ilroa d ’s personnel operations to A lask an labor pool. em ployees, h ave the with strongly the concurrence opposed conventional civil service procedures. agencies 9 For discussion, see p. 51. in spite of the su bstantial I t is also true, of course, th at 41 shortages of particular types of workers, e. g ., privileges of stateside recruits b u t n ot to those of engineers, do prevail in certain areas. local hires b y providing th at the stateside recruit To the extent th a t this situation has em phasized stateside recruiting to a greater degree than necessary, it has aggravated problem s of discrim ination betw een local and stateside workers. A Federal em ployee recruited stateside can ac cu m ulate 45 days of annual leave b u t, if recruited locally, can accum ulate only 30 days. A sta te side recruit can return to the States every 2 years for a vacation , with against annual leave. travel tim e n ot counted who takes his vacation every 2 years m a y be paid b y the G ov ern m en t for his cost of transpor ta tio n .11 In spite of such dual treatm ent, em ployees in A lask a regard them selves Legislation is pending in Congress which will add as tem porary dwellers in an alien land b u t as per m anen t residents o f one of the interesting, m o st vigorous, and beautiful areas of the N a tio n . to the 10 Annual and Sick Leave Act of 1951, as amended (65 Stat. 679-683). 11 H . R . 3820 (84th Cong.), introduced February 8, 1955; referred to the House Committee on Post Office and Civil Service. “ O n Ju ly 15, 1897, the steam er Excelsior entered her dock at San Francisco w ith a p a rty of m iners returning hom e from the Y u k o n R iv er. T h e dis patches w hich w ent to the country through the press th at evening and the follow ing m orning announced th at a large am ou n t of gold dust, variously stated at from $ 5 0 0 ,0 0 0 to $ 7 5 0 ,0 0 0 , had been brou ght dow n on the E xcelsior, and gave the details of the discovery and partial developm en t the previous fall and w inter of rich placer gold diggings on tributaries of the K lon d ik e, a sm all river flow ing into the Y u k o n from the eastward at a p oint in N o r th w est T erritory n ot far from the bou n dary line betw een A m erican and British T h e news created som e excitem ent am ong the m iners of the W e s t, b u t attracted no great attention in the E a st. O n Ju ly 17, the steam er Portland landed at Seattle w ith som e 60 m iners from the K lon d ik e and bringing gold dust to the value of $ 8 0 0 ,0 0 0 . T h is news w as so skillfully handled by enterprising newspapers th at within a week thousands of m en, m a n y of whom had never taken hold of pick or shovel with serious intentions in their lives, were m ak in g preparations to go to the new gold fields, and b y A u g u st 1 the m o st dram atic, if n ot the m o st extensive, exodus since th at of 1849 was well under w ay. . . . W h ile it was evident th at the m ass of m a tter on the su bject appearing in the d aily press contained m uch th at w as exaggerated and untrue, y e t it was recognized th a t truth also pervaded the stories th at were told, for the am oun t of gold brought b y the miners from the Y u k o n indicated beyond d ou b t th at a strike of extraordinary character had been m a d e .” n ot A local recruit in Federal em p lo ym en t has no such privilege.10 territory. it should be em phasized th at thousands of Federal Bulletin of the U. S. Department of Labor, No. 16, May 1898 (pp. 298-299): The Alaskan Gold Fields and the Opportunities They Offer for Capital and Labor. ALASKA cleus of their crew to and from the S tates, sporad ically hiring local help as needed. Wages and Working Conditions D issatisfaction of the local workers w ith this arrangem ent led in tim e to a “ seasonal g u a r a n t y " for them — in es sence, a guaranteed m in im u m T yp ica l w age guaranties in seasonal 1955 were, w age. in the southeastern section, $39 4 for w om en and $561 for m en for 2 m o n th s' work. H . L. C l a r k W a g e s in the fishing in dustry in A lask a alw ays have been characterized b y an entrepreneur statu s of the individual fisherm an. In the early days, fishing seasons were long, the n um ber of fishermen and fishing boats few , and, m o st im p ortan t of all, there seemed to be an inexhaustible su pply of fish. W hile wages and w orking conditions in A lask a H ow ever, since 1936 the salm on catch has alm ost have received wide p u blicity, they are n ot regarded continuously as unusual by longtim e residents of the T erritory. w ith A fter all, m ost of A la sk a 's labor force was attracted fishermen, has m ean t a decline in the individual to the T erritory b y fisherm an's share o f the overall profits m ad e on the higher w ages, and ex pected, in m o st instances, to find w orking condi tions m ore severe than in the fairly stable econ om ies in which th ey form erly worked. dropped. an increase in T h is decrease, coupled the n um ber o f b oats and his b oa t. C on struction wages in A lask a originally paral leled those in the States. A fte r an a ttem p t to follow prevailing A laskan w age standards, princi H is to r y o f W a g e pally in the m ining industry, th ey becam e trans D e v e lo p m e n ts lations of stateside rates in ligh t of the higher B ecause of the early prom inence o f m ining in living cost in A lask a. (Y e t the construction trade A lask a , wage scales were established and working was the first to recognize the “ p rev a ilin g " wage conditions were im proved early in the history of when an act was passed in 1931 requiring con th at in dustry. W h a t was perhaps the first m iner's tractors on public projects to p ay the prevailing w age scale was established during the height of the rate as determ ined b y the B o a rd of R o a d C o m 1898 gold rush. missioners.) B ased on the seasonality of the W a g e rates paid b y seasonal em work and the working conditions, it was a dm itted ly ployers and those paid b y em ployers who m aintain an arbitrary one— “ $5 a day, the food is fine, and steady crews throughout the year h ave differed the gold is c o a r se ." 1 w idely. B ecause of an extrem e m a n T h e difference is m o st noticeable in wages power shortage at the tim e, this rate did n ot hold paid b y for long. T h e salm on canning industry— which had its w age-board basis and those paid b y private con beginning at K la w o ck in 1879, alm ost 20 years construction wage rates on wages paid b y private tractors. G overn m en t agencies which hire on a U n til 1952, m a n y Federal agencies based before the m ajor gold rush— had its own “ ru le-of- contractors on defense p ro jects; since then, their t h u m b " wage rates even before the m ining in rates h ave been closer to the lower level of wages d u stry. paid b y perm anent industries in A lask a. C an nery wages were, and still are, basic ally the sam e as in the Pacific N o rth w est of the S tates. W ith the grow th o f the industry and fish C on se q uen tly, the differential betw een Federal rates and the private construction in du stry's rates has su b ing fleets, federally im posed fishing restrictions for stantially conservation purposes shortened the “ w o rk y ea r" dilem m a which is inherent to the situation where for both the cannery workers and the fishermen. b oth seasonal and year-round workers are in volved T h e m ore concentrated cannery season and longer in w age-board hiring. and harder w orkdays, how ever, have n ot changed tapered off in the construction industry, because the total p ay for the season very m u ch. labor force, h ave continued to transport the n u - T h is has aggravated a A s stateside recruiting has C an n ery operators, in order to assure them selves of a stable 42 increased. i Thereferencetogoldbeing“coarse” m eant that it wasnugget sizeanda little pilferagewas not unexpected. 43 of the growing perm anent labor force in Alaska . 1 — A vera g e w eek ly ea rn in g s in em p lo ym en t covered b y the E m p lo y m e n t S e c u r ity A c t o f A la s k a , selected i n d ustries, 1 9 4 0 a nd 1 9 5 4 T able and the reduced dem and for labor as a result of the com pletion of m ost m a jo r defense installations, 1954 1940 wage scales h ave been determ ined m ore in the light of the T errito ry ’s higher living costs and to Industry classification a great extent b y the w orking conditions. Average weekly earnings Industry rank Average weekly earnings Industry rank T h e lum ber in dustry in the T erritory has only In the past, wage All covered industries..................... $35.51 scales in th at industry, like those in m o st other Agriculture, forestry, fishing_____ M ining____________________________ Contract construction____________ Building contractors_________ General contractors................... Special-trade contractors_____ Manufacturing___________________ Salmon canning______________ Lum ber_________ ________ ____ Other manufacturing. ______ Transportation, communication, and other utilities_____________ Wholesale and retail trade......... .. Finance, insurance, and real estate___________________________ Service. __________ _____ _________ 29.45 34.38 45.04 39.35 48.90 38.02 29.59 28.93 31.26 29.59 1 4 7 103.87 126.78 170.60 161.14 182.19 176.29 105.23 94.75 117.88 126.97 17.31 23.84 12 11 103.10 96.93 9 10 48.02 26.22 2 10 104.91 86.67 7 12 recently attained prom inence. A lask an industries, were gaged b y the “ prevailing” rate, influenced b y the m ining industry in the early days, and recently b y the seasonal construction rates. Starting w ith m ilitary and defense con struction in A lask a, the dem and for forest products brought into existence m a n y m ore w ood m an u fac turing plants. E m p lo y m e n t in this industry has $120.94 8 5 3 9 6 8 5 3 1 2 li 6 4 become less and less seasonal in nature and wage rates nearly parallel those of the lum ber in dustry in the Pacific N orth w est. Source: Employment Statistics, Table B , compiled by the Reports and Analysis Section, Alaska Employment Security Commission, Juneau, M ay 12, 1955. W a g e rates in longshoring h ave risen during the b oo m periods created b y the gold rush, later b y In d u s tr y W a g e L e v e ls W o rld W a r I I , and m ore recently b y the buildup T h e average w eekly wage of workers covered of defense installations, all of which caused serious shortages of workers for this industry. C u rren tly, their wage rates are am ong the highest in the W a g e s in other industries show a varied pattern. T h e differences result from the slow grow th of m anufacturing, com pared w ith the rapid grow th of trade due to the influx of m yriads of workers E m p lo y m e n t Security A c t 2 in H ow W a g e s in G o vern m en t em p loym en t, w hich has rem ained high in relation to the total labor force, are determ ined differently for Federal and T erri torial workers in A lask a. Federal em ployees in the classified service are hired at the standard civil service rates prevailing in the States, plus a 25 allowance, exem pt from Federal incom e tax. which in 1940, individual in dustry averages ranged from o n ly $17.31 a week in transportation, com m un i cations, and utilities to $ 4 8 .9 0 per week in general construction. (See table 1.) B y 1954, the aver age had risen to nearly $1 2 1 , and, am ong indus during the construction b oo m period. cost-o f-liv in g the A lask a creased threefold between 1940 and 1954. ever, while the general average was ju st over $35 Territory. percent by is n ow O n the other hand, Territorial em ployees w ork under various tries, earnings ranged from $ 8 6 .6 7 in the service group to $ 1 8 2 .1 9 in general construction. T h u s, the construction trades ranked at the top in both years. The agriculture, forestry, and fishing and the m ining groups, and the lum ber industry also m aintained their relative positions. The m o st outstan ding change in ranking occurred in finance, insurance, and real estate, which dropped from 2d to 7th place. standards and wage rates are n ot as uniform as in Federal em p loym en t. A ll Territorial agencies par ticipating in Federal grants-in-aid operate under a standard m erit sy stem plan under which wage rates are patterned som ew h at after those of the Federal G overn m en t. In som e areas, a c o st-o f- living differential is paid b u t is n ot exem pt from Federal incom e tax. F or those reasons, a very considerable disparity between Federal and T erri torial take-hom e wages for sim ilar work exists. U n d e r ly in g F a c to rs Stateside w age standards are the greatest influ ence on A lask an w age rates. T hese standards, built up over the years in the various occupation and in dustry groups, have been established in m a n y instances b y stateside union wage contracts, which are the p rototypes for A lask a. * For extent of covered employment, see p. 36. M o reov er, * 44 m ost A lask a n em ployers and their workers cam e 1931 from of higher living tractors on public works to p a y the “ prevailing” costs in A lask a as com pared w ith the States also w age rate as determ ined b y the B oard of R o a d the S tates. R ecognition Legislature passed a law requiring con has been an im p ortan t factor in the determ ination Com m issioners. of w age rates. passed in 1939, also had som e effect on A la sk a ’s T ran sportation cost, costs result T h e first wage and hour law , ing from spoilage o f food and other m aterials, and wage rates. shortages o f housing and living facilities, supplies, set a m in im u m of $18 for a 48-h ou r week and a 4 5 - and equipm ent have been reflected in A laskan cent m in im u m h ourly rate for p art-tim e w ork. wage rates. T h e p ay m en t of tw o -w a y transpor T h e wage and hour law now in effect in the T erri tation in the fishing, m ining, construction, and tory was passed in 1955 and applies to b oth m en G o v ern m en t groups has influenced greatly wage rates in those industries. the F urtherm ore, the and w om en. T h is law applied on ly to w om en and W it h som e exceptions, it sets a m ini m u m hourly rate of $ 1 .2 5 . high seasonality of w ork in such industries as fishing, salm on canning and processing, construc T y p ic a l W a g e S c a le s tion, lighterage, and w haling alw ays has been a A lask an w age rates for a given occupation v a ry strong influence. T h e T errito ry ’s labor shortages during W o r ld greatly from in dustry to in dustry and from area to W a r I I , even for the m o st unskilled workers, were area. another factor w hich pushed wages upw ard su b occupation are uniform on ly w hen workers em stantially. H ig h construction wage rates, occa ployed in different industries are m em bers o f the sioned a by “ co st-p lu s” m ilitary construction W ith in a particular area, w age rates for an sam e union. T h e rates for different occupations b oo m , h ave m ade w ages in construction and its within an in dustry in each area also encom pass a supporting industries so attractive th at the perm a wide n en t labor force in A lask a has grow n faster than geographic location and the nature of the w ork in alm ost a n y other area. also affect the level of wages in particular industries. T h e rate of grow th in the T err ito ry ’s labor pool has created severe u n em range. (See table 2.) Such factors as A s in the case of average earnings, construction p lo y m en t problem s for A lask a during the winter wage rates universally set the pace. m on th s. in the K etch ik a n area in the southeast, m echanics F or exam ple, R egion al differences am on g particular occupa receive $3 .7 2 an hour in construction; from $ 2 .5 0 tions and in dustry groups h ave m ean t lower scales to $3 in trade and services; from $ 2 .3 0 to $ 2 .7 0 in in Sou th east A la sk a than in the W estw a rd (the G o v ern m en t; and $ 2 .7 5 in lum bering and logging. T h e y are In Anchorage, on the other hand, where cem ent brought abou t b y the lower cost of living in the finishers in private industry all belong to the sam e southeastern section and the absence of the b o o m union, th ey receive a m in im u m of $ 3 .6 7 in b oth area north and w est of the P an han dle). atm osphere still prevailing in the W e stw a rd construction and the trade and service groups. H ow ever, it is n ot the basic h ourly rates th a t section. T h e seasonality o f m a n y activities also has an im p ortan t effect on wages in A lask a . F o r ex attract stateside workers to the construction in dustry in A lask a so m u ch as the overtim e and am ple, scales for year-round road m aintenance holiday job s seasonal tim e rates are often the usual rates, because of the construction w ork, and m aintenance forces h ave long days and 7 -d a y weeks necessitated b y the are low er increased than those for highly as roads h ave been com pleted. Im rates. concentrated T im e-a n d -o n e-h a lf work seasons. and double H e a v y -d u ty -tr u c k construction drivers on construction job s in the A nchorage area, n ow perm it m ore year-rou n d w ork in th at in dustry. for exam ple, h ave an h ou rly rate of $ 3 .5 9 , b u t th ey proved engineering techniques in T h e effect o f Territorial labor laws on wages and hours 3 cannot be overlooked. T h e 8-h our d ay, typ ically earn a “ n orm a l” y ear’s wages in a few m on th s. T h e earnings of these and other highly established in public w orks and in underground unionized skilled workers are usually above the m ines in 1913, in reality was a com bination h ea lth - average. sa fety provision, b u t at the sam e tim e it resulted in a w age differential for the m ining industry. The 8 For a more comprehensive description of the provisions of these laws, see p. 49. 45 T h e construction in dustry also provides illustra M in in g is an exam ple of the wage variation tions o f the variation in wage rates am on g areas. am ong occupations w ithin an industry. T h e earnings o f construction engineers in A n ch or Fairbanks area, am ong professional and clerical In the age and F airban ks— where m o st of th em w ork— workers, for instance, salaries range from $335 range from $ 800 to $ 1 ,0 0 0 and from $700 to $900 a a $550 for m ining m o n th , respectively. engineers. T able m o n th for clerk-typists to R a tes for other m in in g em ployees b e - 2 .— W a g e and sa la ry scales f o r selected occu p a tion s , b y in d u stry category. A n c h o ra g e, F a irb a n k s, a nd K etch ik a n , M a y 1955 [In dollars] Anchorage Fairbanks Occupation Construc Government tion Government Placer min Trade and service ing Construc Fisher Govern Lumber tion ies products ment Trade and service [Salary scales on a monthly basis unless otherwise indicated] Professional and clerical Accountant________________ Bookkeeper_______________ C lerk-typist............ ............. Draftsman________________ Engineer__________________ Salesclerk: Clothing_________ _____ General_______________ Con struc tion Trade and service Ketchikan 750-900 527-733______ 450-600 356-480______ 350-400 305__________ 500-750______ 350-500______ 300-350______ 800-1,000 527-733______ 650-900______ 1.44 hr______ 2.45-2.80 h r.. 700-800 425-500 300-400 3.00 hr. 700-900 400-450______ 355-438_____ 307__________ 437__________ 527-645______ 400-750 335 315-500 335 315-375___ 550 1.66 hr______ Grocery........ ........... ....... Secretary_______________ __ Stenographer or clerkstenographer. Teacher, primary and secondary school. Technician, laboratory and/or X -ray. 400-500 356__________ 400-450 330__________ 4,550-6,185 yr. 356................. 1.50-1.75 hr. 1.50-1.75 hr. 2.45-2.80 h r.. 2.34 hr______ 350-450______ 325-400______ 350-450 307-350______ 335 325-450___ 5,430-7,200 yr. 400__________ 5,550-6,200 yr. 330__________ 300________ [W age scales on an hourly basis unless otherwise indicated] Service Baker______________________ Butcher____ _______________ 2.95 2.70 23.00 s h ift ...' 2 .7 0 ... 3.00_________ 2. 70.._ Cook, camp_______________ Dishwasher___ ____________ Janitor and/or bull coo k ... Kitchen helper____________ Waiter and/or waitress----- 2.95 2 .5 8 -2 .8 4 .... 2.15 2.15 2.78_________ 23.00 shift. . . 14.00 shift . . . 400-500 m o .. 2.25 1.46............... 12.00 shift. - 2.58-284_____ 2.025 1.65 1.50-1.75 [W a ge scales on an hourly basis unless otherwise indicated] Trades and labor Brickmason___ __ ____ Bulldozer operator________ Carpenter . _ __ Cement finisher__________ Chokersetters___ _________ C ran e-sh o v e l op erato r Electrician________ ______ Fallers and buckers __ Hooktenders____ __ __ Ironworkers, structural.. . Machinist________________ Mechanic _ ___ Mechanic, heavy duty----Mechanic, maintenance. — P a in t e r Plumber. ___ _______ Sheetmetal worker. __ Truckdriver, light ______ Truckdriver, heavy W elder _ ._ ______ La b o re r. _ 2. 75._. 2 ,1 5 ... 1.80-__ 2 .1 5 ... 2 ,2 5 ... 1.92 27.50 shift . 450-500 mo. 1.92 1.58 14.00 shift . 1.58 2.00 1.58 17.00 shift 1.58 12.00 shift. 4.39 3.74 2.95_________ 3.69 2.84_________ 3.67-3.92 4.39_________ 3.54-3. 7 4 . .. . 3.00-3.69___ 1 3 .6 9 ... 2.84________ 3.67_________ 3.60. __ 2.78_________ 2.54 3.69 1___ 3.60_______ 3.525 2.96-3.15 3.095 4.09-4.39 2. 95_________ 4.35 3.02................ 4 .0 9 -4 .3 9 .... 4.35_________ 3.02_________ 2.54 4. 25_______ 3.84. 4.035 3.14_________ 3.50_________ 3. 79 3.02. ............ 3.02_________ 3.73 2. 78_________ 4.25 2. 95_________ 4.10 3.02_________ 3.39 3. 59 2.66_________ 3.79-3.84 3.02_________ 3.255-3.29 2.22_________ 3.39-3.79___ 500-600 m o .. 3.00-3.73___ 4.25_________ 4.10_________ 2. 75-3.22___ 2.98-3. 52___ 3. 79-3.84___ 3.25-3. 29___ 1 1954 rates. 2 Rate for cannery laborers is $1.72 an hour. 4 .2 5 ... 3.525 2~35-2~75 4.20 3.11 2.75 4.20 3.50 3.00-3.50 3.84 3 .7 9 ... 3.14_________ 3.83— 4.35— 4 .1 0 ... 2.78_________ 3.83_______ 2.95_________ ""2." 54 4.35_______ 3.02_________ 4.10_______ 3 .9 3 ... 3.02_________ 3.72 2.30-2.70 2.75 2.50-3.00 3. 525 3. 75 3.95 2.86 3.11 3.11 3.525 3.50 3.95 2. 54 } 3 .245-3.43 — 2.54 3.00_______ 3.72 3.095 2 2.15-2.70 2.50-2. 75 3.06 2.475 1.85-2.45 2.45 3.06 2.00-2.50 Source: Data compiled by the Alaska Em ploym ent Security Commission, 1955. 46 gin at $ 1 .5 8 an hour for such workers as kitchen w ith the U n ited States average union scale o f helpers and janitors and reach $ 2 .5 4 an hour for $ 2 .0 4 . skilled workers. A lask a and principal cities in the States are som e L u m berin g and logging is m a in ly concentrated w h at The differences in w age scales between sm aller for office occupations, especially in southeastern A lask a , and the wage rates reflect those w ith labor shortages, such as stenographers. the som ew hat lower cost of living th at prevails F or exam ple, general stenographers in San F ra n - there, as com pared w ith W estw a rd A lask a . cisco-O akland averaged $65 a week in January The longer work season, steadier em ploym en t, etc., also 1955— the affect the rates in this industry. m arket areas surveyed b y the B L S .6 highest average am ong 17 lab or- In A n ch or In longshoring, although the h ourly rates are age, where stenographers' m o n th ly rates are abou t high to com pensate for the sporadic nature of the as high as a n y place in the T erritory, the range is w ork, earnings on a w eekly, m o n th ly , or annual from around $ 3 0 0 to $ 4 5 0 ; the average of $32 5 is basis com pare w ith the lower classifications in the tow ard the lower side of the range, because stenog other industries. T h e longshore union agreem ents raphers, in general, do n ot rem ain m ore than a provide different w age scales for various types of year or so w ith an em ployer and consequently do work. n ot receive large wage increm ents. T h e straigh t-tim e rate for the Juneau dock, for instance, is $ 3 .1 4 an hour for handling n on p en a lty cargo and $ 3 .2 4 for handling penalty cargo.*4 T h e straigh t-tim e rate is in force only W age differentials betw een A lask a and the States are largest in occupations in defense and h ea v y construction. T h e y are attribu table to the betw een 8 a. m . and 5 p. m ., M o n d a y to F rid ay , urgency of the w ork in A lask a , the shorter work and then for o n ly the first 6 hours o f w ork each season, the m ore difficult working conditions, the day. at tim es higher cost o f living, and the fa ct th at m a n y con other than those stipu lated, the overtim e rates of struction workers m aintain 2 residences, 1 for their $ 4 .7 0 an hour for n on p en alty cargo and $ 4 .8 5 for fa m ily in the States and 1 for them selves in A lask a . hazardous cargo are m o st typical. T h e differentials are sm allest in som e of the skilled B ecau se m o st cargo is handled W o m e n in A lask a , in general, receive the sam e crafts, in trade and the service industries, and in p a y as m en when th ey perform identical duties. office occupations th at are n ot so m u ch affected b y T h e p a y differs betw een sexes in som e occupations the defense construction activ ity . because the w ork is n ot equal— owing to extra requirem ents (h eavy work, extrem e working con ditions, odd hours, e tc .). H o u rs o f W o rk A typical difference is for retail clerks in the K etch ik a n area, where m en T h e chance to double incom e, b y working long receive $ 1 .9 5 to $ 2 .1 0 an hour and w om en from hours, w as a greater attraction for the thousands $ 1 .3 5 to $ 1 .7 0 , because m en are expected to do of workers w ho cam e during the various b oom s heavier lifting and the m ore tiring storage tasks. than w as the actual base w age. T h e w orking of long hours in construction has virtu ally m ocked A la s k a - S ta t e s id e W a g e D iffe r e n tia ls the concept of the 40-h ou r week. D u rin g W o r ld W a r I I and postw ar years, the v ery nature o f con T here are pronounced differences between A laskan and stateside w age rates for both skilled and unskilled workers. C onstruction carpenters, for instance, got from $3.52% to $ 3 .6 9 an hour in A la sk a in M a y 1955 (table 2 ), com pared w ith the average union w age scale in the U n ited States of $ 3 .0 1 on J u ly 1, 1955, and a range from $ 2 .1 8 to struction w ork in A lask a necessitated lon g over tim e hours in the short w orking season, as already indicated. T h e decline in average hours worked in construction, caused in part b y the grow th in the labor su pply in the last 2 years and the virtual elim ination of em ergency com pletion deadlines, has been due also in part to the increasing co m p eti- $ 3 .5 5 am on g the 85 cities surveyed b y the U . S. D e p a rtm e n t of L a b o r's B u reau of L ab or Statistics.5 E v e n greater differences are found in the w age scales for construction laborers, who earned $ 3 .0 9 in K etch ik a n and $ 3 .2 9 in A nchorage, com pared 4 Penalty cargo includes cold-storage products such as meat and produce, cement, and materials such as creosote, the handling of which involves extra hazards. 4 See press release U SD L-1225, July 27, 1955. « See M onthly Labor Review, October 1955 (p. 1119). 47 fcion am ong contractors and the desires of unions the D a k o ta s, and others. to spread the w ork am ong all o f their qualified im portan t construction m em bers. W estw a rd section U n fo rtu n a tely , m o st w ork has o f A lask a . In been the in the ou tlying In 1955, the Legislature passed a w age and hour areas where m a jo r advance attack-w arning n et act requiring tim e and one-half p a y after 8 hours works have been constructed, the severity of the in 1 d ay and 4 0 in 1 week. w inter clim ate cannot be overem phasized Since construction and as a other seasonal industries already were adhering m a jo r factor in b oth obtaining workers and setting pretty m u ch to this pattern, its influence will be wage scales. m o stly felt in the services, trade, and other supporting industries. In the light of earnings o f workers (table 1), the num ber of T ied som ew h at to clim atic conditions in A lask a is another factor th at strongly affects w age rates hours w orked m u st have been and working conditions, the seasonality o f the work, which results in a high rate of offseason greater than the typical 40 for stateside industries. u n em ploym en t. In the m etal m ining industries in the States, hours force is m ade up o f people in industries su bject to average slightly over 40 a week. In A lask a , th ey range from a low o f abou t 27 during the winter A large part of the A laskan work closedowns during the winter m onths. In addi tion, em p loym en t in the im portant fishing and to a m a xim u m of abou t 52 during the sum m er. fish processing industries is seasonal because the T h e U . S. D ep a rtm en t of L a b o r ’s figures for private fishing runs have fallen off steadily in recent years, building construction do n ot show a seasonal range bringing curtailm ent of the season, for average hours w orked, b u t the average o f 36.2 indicated. for 1954 falls far short o f the 40 to 59 hours O ver the years, as already the u nem p loym en t com pensation law has operated to the advan tage I t is o f these industries b y providing the workers w ith quite com m on during the sum m er construction u n em p loym en t benefits th at are, in a w a y , an w eekly— an average of 5 1 .2 — for A lask a . season in A lask a for the w eek to be m ade up of “ offseason” w age. six 9-h our days and in som e instances, as high as benefit never has offset enough of the earnings loss seven 12- or 16-hour days. H o w ev er, the average w eekly to sustain the worker and his fa m ily at a reasonable T h e U n ited S tates average for workers in the lum ber and w ood products (excluding furniture) level. F or exam ple, the m a x im u m benefit is currently $45 a w eek for the worker plus $5 for T h is com pares each dependent child (up to 5 children), whereas w ith a range of 3 6 .2 to 42.1 in A lask a, w ith an the average earnings in covered em p loym en t were average of abou t the sam e as for the States as a nearly $121 a w eek in 1954. in dustry was 4 0 .6 hours in 1954. T h e production of lu m ber and wood prod B ecause of the h e a v y drains on the u n em p loy ucts in A lask a is, of course, very m uch like th at m en t com pensation fund caused b y seasonal u n whole. in the States and is n ot su bject to the violent sea em p loym en t, workers w ith on ly a short atta ch sonal peaks and pressures th at characterize the m en t to the A la sk a labor force are n o t n ow eligible defense, construction industry. for u nem p loym en t benefits.7 M o s t of the trade and service industries and the G overn m en t agencies One of the m ining in d u stry’s largest selling work steadily, w ith overtim e on ly at particular points to attract workers has been tim es of the year. provided b y the m a jo r m ining operations. W o rkers in these categories the cam ps By average around 4 0 hours w eekly, the sam e as their providing the best in food and adequ ate shelter, at counterparts in the States. low cost, the m in in g in d u stry has added su bstan W o r k in g F o r som ew hat the sam e reason, w ork on a y ear- tially to the tak e-h om e earnings of its workers. C o n d it io n s round basis on the m ilita ry installations freq u en tly C lim ate, an influencing factor in A lask a n wage rates, also affects working conditions in the Terri tory. W h ile the winters in the W estw a rd and interior parts of the coun try are severe enough to close dow n m u ch outdoor activ ity , the southeastern section is n ot ham pered b y frigid w eather as m uch as are the States o f N e w Y o r k , M o n ta n a , Illinois, attracts workers. T h e o n -th e-base housing facili- 1 A t the present time, about $650,000 of the Alaska unemployment trust fund is frozen pending a decision, in connection with The Fidalgo Island Packing Co. v. P h illips et at., as to whether seasonal cannery claimants will receive benefits based on claims filed outside the seasonal dates established by a former director of the Alaska Employment Security Commission. Effec tive July 1955, the Alaska Employment Security Law no longer provides for seasonal regulations, but changes in the provisions dealing with base-year wages will make many seasonal workers ineligible for benefits. 48 ties provided for the worker (and som etim es for working conditions are hazardous. his fa m ily) plus the advan tage of purchasing at to base p ost exchanges, m ake the lower w age rates stitu te a large segm ent of the w orking force, and seem m ore attractive. although th ey are su bject to T h e fringe benefits available to m a n y A lask an workers are sim ilar to those granted in the States. m e n ’s com pensation. to m o st union wage agreem ents in 1 0 ,0 0 0 exceptional occu pational hazards, th ey are n o t covered b y w ork F or exam ple, The 1 2,000 com m ercial fishermen in A lask a con take care of Provision has been m ad e disabled fisherm en, how ever, A la sk a carry provisions for paid vacations of from through a special fu nd financed b y the allocation 1 to 2 weeks, depending on length of service. of 30 percent of the com m ercial fishing license fees. A n n u a l and sick leave provisions apply for m o st G o v ern m en t w orkers, O ther fringe benefits in the form o f welfare and Federal workers re funds, com pan y-spon sored pooled -b u yin g arrange cruited in the States receive m ore liberal annual m en ts, credit unions, etc., are provided b y b oth leave than those w ho w ork in the States. p rivate and G o v ern m en t em ploying units. A su bstantial m a jo r ity of A laskan workers are covered b y the u n em p lo y m en t com pensation la w .8 transportation to and from A lask a , while Paid n ot correctly classified as a fringe benefit, is none C urren tly, benefits up to $45 a week are p rovid ed ; theless if the worker has 5 dependent children, he m a y v o lv e d ; receive as m u ch as $ 7 0 , as indicated previously. and T h ese benefits are the highest available to un benefits. considered as nonresident private such by em ployees industries the workers in in are often G o v ern m en t granted such em ployed workers in an y State. C om pensation for w age loss b y injured workers has proved to be a fringe benefit in A lask a, where 8 Prior to the extension of coverage to Federal employees in January 1955, about half of AlaskaYemployed workers were covered. E n tr y for A u g u st 2 4 , 1897, from diary of govern m ent agent in vestigating conditions during A lask an gold ru sh : “ . . . A p p lied at half a dozen . . . tents for a cup o f coffee, b u t w as refused, although . . . p a y m e n t w as ten dered. A m an w ith a pile o f grub 6 feet high . . . declined to part w ith enough o f it, even for p ay , to enable a fellow -traveler to reach his ow n outfit a few m iles farther on. . . . R ea ch ed the fo o t o f L o n g L ak e, 3 m iles from L in d em an . . . Q u ite a n um ber o f tents here. A p p lied at 1 for a cup of coffee, and received a h earty in v ita tio n from the 3 occupants . . . th em in the m eal th ey were preparing. to join A n a ttem p ted ap o log y for the intru sion m e t w ith the unanim ous assurance . . . th at none was necessary, as th ey h ad them selves b u t 10 m in u tes before taken possession o f the ten t, which th ey h ad fou nd unoccupied. A fte r a su m ptuous dinner o f bakin g-pow der biscuits, bacon , beans, and coffee, a letter w as w ritten to the owner of the ten t, th anking h im for his h osp itality . . . A rrived at L ak e L in d em a n at 7 o ’clock. T h e cam p . . . contains abou t 50 tents and a tem p orary p op u lation o f 2 0 0 . . . . S itu ation som ew h at discouraging; no blankets, no food— n oth in g b u t w et clothes and a b ad cold. M a d e the acquaintance o f two brothers from Juneau, and on sta tem en t o f circum stances w as in vited to share their ten t, given a change of clothing and half a teacupfu l o f H u d so n B a y ru m , and p u t to bed. O pinion o f the people on the trail im p ro v in g .” Bulletin of the U. S. Department of Labor, No. 16, May 1898 (pp. 305-306): The Alaskan Gold Fields and the Opportunities They Offer for Capital and Labor. ALASKA E q u a l R ig h ts a n d Labor Law and Its Administration v o te. L a b o r T h e first enactm en t of the 1913 Equal B igh ts. Legislature C h ild gave A la sk a ’s w om en the right to E q u a l rights for w om en received further im petus as a result of a 1922 referendum in which w om en were asked w hether th ey w anted to serve on ju ries; the 1923 Legislature established eligi L. E. E van s b ility for ju ry d u ty regardless of sex ; 10 years later, A lask a n w om en were given the right to hold public office. An e q u a l-p a y passed in 1949. law for A laskan w om en was A dm in istered b y the C o m m is sioner o f L a b o r, this la w allowed the affected em A laska’ s L egislature first m e t on M a r c h 3, ployee or the C om m issioner to sue for back w ages; 1913, the d ay before the U n ited States D ep a rtm en t the C om m issioner was authorized to refer cases to of Labor the A tto r n e y G eneral for prosecution. achieved C abin et statu s. The 1913 session was m ade up largely of m en who had en T h e first antidiscrim ination law of the T erritory tered the T erritory during the gold-rush days of w as passed in 1945 and applied o n ly to restau 1898 and 1899. rants, T h e y were m iners experienced in establishing ad hoc governm ents as th ey set up cam ps on the heels of each new gold strike. theaters, hotels, and other such public places. A F air E m p lo y m e n t Practices A c t was passed T h e laws enacted b y these pioneer legislators in A lask a in 1953. A dm in istered b y the T erri com pared fa v orab ly w ith labor legislation existing torial D e p a rtm e n t of L ab o r, this law declared th at in the States at the tim e. the o p p ortu n ity to obtain em p loym en t w ithou t Legislature w o m en ; extended established the the T h e first territorial votin g 8-h ou r franchise d ay on to public w orks and in underground m in es; prohibited em discrim ination because o f race, religion, color, or national origin was a civil right. I t prohibited discrim ination n ot on ly b y em ployers b u t also b y ployers from requiring their em ployees to patron em ployees, labor organizations, and em p loym en t ize co m p an y stores or boardinghouses; declared agencies. em p lo ym en t in underground m ines hazardous and created the position of m ine inspector (variously Child Labor. titled since then) w ith broad auth ority to enforce Territorial Legislature, child-labor laws have been sa fety ru les; passed a m iners’ lien la w ; prohibited enacted or am ended. the use o f deception, m isrepresentation, false ad hibited the em p lo ym en t of b oy s less than 16 years In four different sessions of the T h e 1915 Legislature pro vertising, false pretenses, and unlaw ful force in of age underground in m ines and prohibited a n y recruitm ent o f em p lo yees; passed an em ployers’ person under age 18 from being em ployed as a liability act, the forerunner o f w orkm en ’s co m hoisting engineer. pensation, and a m easure for the m ediation and girls under 16 was prohibited. arbitration o f labor disputes. The T h e chairm en of the labor com m ittees o f A la sk a ’s In 1939, the em p loym en t of 1949 Legislature passed a general child- labor law w ith a m in im u m age of 16 in m o st oc first Legislature were Senator H e n ry R o d en of cupations, 18 in hazardous occupations, and 21 in F airbanks and R epresentative T o m the business of serving or selling liquor. N om e. G affn ey of T h e y deserve full credit for the labor laws passed at the first session. T o date, 22 regular P a rt- tim e work during the school year was restricted to a m a x im u m of 23 hours a w eek, and the hours and 3 extraordinary sessions o f A la sk a ’s L egisla of work for m inors under 18 years of age were ture h ave m e t ; the topical discussion of A lask an lim ited to 8 in 1 d ay and 4 0 in 1 week. labor laws and their adm inistration which follow s was am ended in 1951 to p erm it children over 16 is based on the actions o f those sessions. to work m ore hours under certain conditions. T h is law 49 50 W a g e s a n d of A lask a to furnish perform ance and p ay m en t H o u rs bonds. Provision was m ad e for persons furnishing T h e enactm ents of the first Territorial L egisla labor or m aterial to sue on the p ay m en t b o n d ; suits ture indicated its awareness of the need for regula were to be brou ght b y the T erritory in the n am e tions as to wages and hours. of the claim ant. H ow ever, its legisla tion in th at field and th at of succeeding sessions Lien law s to protect laborers, m echanics, was restricted, until 1955, to law s applicable only L ie n s. to an industry, an age group, or a sex. and suppliers o f m aterial were abou t the on ly labor law s to predate the enactm en t o f a lien law to pro M in im u m W age and Overtime. A la sk a ’s first tect m iners b y the first legislature. A lm o st every w age-and-h our law w as passed in 1939 and applied session since has am ended or expanded this ty p e of on ly to w om en . legislation. I t se t: A m in im u m age o f 16 In 1933, an om nibus bill to am end, for e m p lo y m e n t; a m in im u m wage for w om en over supplem ent, and codify all the lien law s o f the 18 years of age of $18 for a 48-h ou r w orkw eek or, T erritory w as found necessary. for p art-tim e w ork, of 45 cents an h ou r; and m axi engineers, and workers in the service industries are m u m penalties of a $ 2 5 0 fine or 6 m o n th s’ im prison covered b y lien law s. m en t for violation. N o w architects, D iscrim in ation against a com plaining em ployee was prohibited. T h e A tto rn e y W age Collection. A lth o u g h A la sk a had a con General was charged w ith enforcem ent o f the act, sta n tly expanding sy stem of lien law s, failure or b u t in 1941, enforcem ent was transferred to the refusal to p a y wages w as n ot recognized as a public n ew ly created A la sk a D e p a rtm e n t of L ab o r. T h e L egislature passed offense until 1923, when an act w as passed requir a w age-and-h our bill applyin g to b oth m en and w om en in 1955. m in im u m w age was set at $ 1 .2 5 an hour. The T im e ing th at (1) w ages be paid at least once a m o n th , n o t m ore than 15 days after the last d a y o f the m o n th in which th ey were earned; (2) an em ployee and a h alf was required for w ork perform ed after be paid 8 hours in 1 d ay and 4 0 in 1 week. T here were services or being discharged; and (3) em ployers “ w ithou t d e la y ,” upon com pleting his num erous exem ptions from the overtim e require establish regular p a y d a y s and p ost notices to th at m en ts and a m ore lim ited num ber of exem ptions effect. from the m in im u m -w age provisions. his wages could be awarded the full am ou n t due Public W orks and the 8 -H o u r D a y . m ore than $ 5 0 , as well as $25 as dam ages. T h e em ployee w ho w as forced to sue for and an a tto rn ey ’s fee of n ot less than $ 1 0 nor A n 8-h our d a y in m ining and public works w as established in the T erritory as early as 1913. Y e t , despite pressures for a general 8 -h o u r-d a y law in 1915 and a 1916 referendum 1 favoring the passage o f such a law , workers generally did n o t receive such protections until the w age-and-h our law ju st described was passed in 1955. W a g e collection law s h ave been am ended from tim e to tim e. In 1945, the A lask an C om m issioner o f L a b o r w as authorized to sue for back wages w ithou t cost to the em ployee in m eritorious cases. Succeeding Legislatures h ave broadened the C o m m issioner’s auth ority and closed loopholes in w a g ecollection law s. T h e rights o f workers in public works received further protection in 1931 b y the passage o f an W o r k e r S e c u r ity act w hich required contractors to p a y prevailing w age rates as determ ined b y the B oard o f R o a d Unem ploym ent Insurance. C om m issioners. A la sk a ’s Legislature was called in 1937 to enable C on tractors were required to sub A special session of m it m o n th ly reports to the B oard show ing the the Territory to participate in the Federal Social n um ber o f m en em ployed and the w ages paid. Security A c t, w hich had been enacted in 1935. The A A tto r n e y General was authorized to enforce the act when so instructed b y the B oard of R o a d C o m m issioners. In 1953, the Legislature required con tractors engaged in public works for the T erritory 1 The vote favored the proposal by 6 to 1 and, as a result, a general 8-hour law was passed in 1917. It prohibited overtime work and declared violation of the act a misdemeanor. This law was subsequently declared unconstitu tional. 51 Territorial U n em p lo ym en t C om pensation A c t was 1955 passed, a 3-m a n com m ission was set up to adm inis $2 million from the T errito ry ’s general fu nd for and 1 9 5 6 ; and (3) authorizing a loan of ter its provisions, contributions from em ployers the purpose o f pay in g u n em p loym en t insurance of 8 or m ore workers in covered industries were benefits, pending the passage o f Federal legislation provided, which w ould perm it A lask a to borrow m o n ey from and benefit p ay m en ts on January 1, 1939. were to start T h e m a x im u m benefit was the Federal u n em p loym en t trust fu n d .3 $15 a w eek ; there was a 2-w eek w aiting period. T h e 1913 Legislature T h e original act also defined a seasonal in dustry W ork m en ’s Compensation. and seasonal em ployees, for purposes of determ in passed an em p loyer’s liability act. ing eligibility for benefits. follow ed in 1917 b y a W o r k m e n ’s C om pensation A la sk a ’s u n em ploym en t com pensation law was am ended at every succeeding session of the L egis A ct for m ine schedule of which established perm itted the E m p lo y m e n t Security L a w . w as Benefits were extended, num erous technical changes were m ade. and In 1945, percent of w ages. to w aive n the em ployer duration em ployee either B enefits for tem porary disability were set at 50 their the but la tu re; even its nam e was changed (in 1 9 4 9 )— to increased, or em ployees, benefits T h is law was coverage. In 1923, A la sk a ’s w o rk m en ’s com pensation w as expanded to cover all private coverage was extended to em ployers of 1 or m ore em ployers of five or m ore workers and the benefit workers. schedule w as increased; and, in 1946, Territorial In 1947, a system of experience-rating credits for em ployers was enacted. D ep en d en ts’ G overn m en t em ployees were covered. Im p rovem en ts h ave been m ade from tim e to allowances were inaugurated in 1949. T h e seasonality and experience-rating provisions of A la sk a ’s em p loym en t security laws have caused m ore controversy than all its other labor B y 1955, a crisis h ad been reached in A la sk a ’s em p loym en t security program . T w o law suits had taken or tied up over $1 % m illion of the funds for benefits.2 E xperience rating credits earned over the years resulted in em ployers’ p ayin g into the fund approxim ately $5}i m illion less than th ey w ould h ave if there had been no experience-rating provision. A h ea v y u nem p loym en t load in 1954 had drained another $5 m illion. of T h e em p loym en t security fund was exhausted while the 1955 legislature was in session and benefit p ay m en ts were suspended. T h e Legislature m e t this fiscal em ergency b y (1) increasing the taxable w age from $ 3 ,0 0 0 to $ 3 ,6 0 0 a year, effective January 1, 1 9 5 5 ; (2) assessing a tax on em ployees of one-half of 1 percent on w ages earned up to $ 3 ,6 0 0 during the calendar years * R esponsibility for carrying o u t provisions the act w hen created. 3 Following the approval of Public Law 56 (84th Cong.) on June 1, 1955, $3 million from the Federal fund was advanced to Alaska. w ith the em ployer and the the A lask a Industrial B o a rd w as T h is B oard was com posed of the C o m m issioner of L a b o r as C h airm an and E x ecu tiv e Officer, the Insurance A tto rn e y G eneral. C om m issioner, and the Its duties as the adm inistrative arm of the Territorial D ep a rtm en t of L a b o r in w orkm en ’s com pensation m atters were spelled out. Disabled Fisherm en. T h e problem of care for the self-em ployed person who receives an occupational in ju ry is closely related to w orkm en ’s com pensa tion. A la sk a ’s self-em ployed com m ercial fisher m en constitute a large b o d y of w orking people su bject to num erous occupational hazards. B e cause th ey cannot fall back on w ork m en ’s com pen sation when disaster strikes, the disabled fisher m e n ’s fund was established to m eet this need in 1951. of Its m on eys are obtained from 30 percent the licenses. * The decision in The N ew England Fish Co. v. Vaara, et a l . , required the Commission to change the basis for its computation to determine whether there was a surplus in the trust fund. On the changed basis, there was a surplus and the Comrpission had to distribute experience-rating credits to employers. In connection with The Fidalgo Island Packing Co. v. Philips, et al., about $650,000 of the fund were frozen pending a decision as to whether certain seasonal employees were eligible for benefits. rested injured w orkm an w ith recourse to the courts until 1946, legislation com bined. originally intended tim e. receipts from com m ercial fisherm en’s T h e fund is adm inistered b y a board com posed of the C om m issioner of L a b o r as C hair m an and E x ecu tiv e Officer, the C om m issioner of H ea lth , the C om m issioner of T ax a tio n , and four people from the fishing in dustry who are appointed b y the G overnor w ith the approval of the L egis lature. 52 Territorial T e r r it o r ia l E m p lo y e e s em ployees were covered under the W o r k m e n ’s C om pensation A c t , as already indi O ne test o f the attitu de of a n y S tate tow ard its cated. The 1949 Legislature passed a public labor law s m a y be found in the treatm ent of its em ployees ow n em ployees. repealed in 1951, provision w as m ad e for continu A review of A lask a legislation retirem ent act. A lth o u g h this w as relating to em p loym en t b y the T erritory and its ing p aym en ts to those already retired. political subdivisions shows th a t A la sk a ’s L egisla place the retirem ent act, arrangem ents were m ade T o re ture follow s the cu stom of the tim es, is sensitive for covering all Territorial em ployees under the to changes in econom ic conditions, and m akes a old age and survivors insurance provisions of the sincere Social Security A c t. effort to treat its approxim ately 1,200 em ployees fairly. Territorial offices are n ow on a 5 -d a y week. D e v e lo p m e n t o f A la s k a D e p a rtm e n t o f L a b o r A n n ual leave is provided at 30 days a year and Sick leave is M o s t labor laws in A lask a initially applied to authorized at 1% days per m on th , cum ulative to the m ining in dustry and then were broadened to m a y be accum ulated up to 60 days, cover a m a x im u m of 30 d ays. T h e depression in the 1 9 3 0 ’s affected A lask a em ployees in other fields. The general practice of A lask a Legislatures was to give the T h e salaries of all Terri responsibility for handling problem s in volvin g the torial officials and em ployees were reduced b y 10 health and safety of em ployees in any in dustry g overn m ent em ployees. In 1935, an em ployee was pro to one official, titled at different tim es as M in e hibited from accepting outside em ploym en t if he Inspector, and later as C om m issioner o f M in e s, earned $ 200 a m o n th or m ore. ex officio Com m issioner of L ab o r, and ex officio percent in 1933. N o person could be hired b y the T erritory or a political subdivision Com m issioner of T ran sportation . if his or her spouse earned $20 0 a m on th or m ore. ture custom arily left problem s in volvin g p a y m e n t B y 1943, the m anpow er shortage was acute, and of the antinepotism law s of 1935 were repealed. benefits, to private negotiations betw een em ployer As w ages, including w ork m en ’s T h e L egisla a result of the rising cost of living and increasing and em ployee and to the courts. com petition for labor, the first o f a long series o f w age salary increases started in 1945. General for action. problem s were referred com pensation In som e cases, to the A tto rn ey treats its T h e 1913 Legislature established the position em ployees m a y be found in the teaching profession. of M in e In spector to provide for the h ealth and An exam ple o f h ow the Territory In 1929, the m in im u m salary for teachers in the safety of m ineworkers. F irst D ivision (Juneau area) was $ 1 ,8 0 0 ; in the ity to require the correction of unsafe or unsani I t gave h im broad author T h ird D ivision (A nchorage area), $ 1 ,9 8 0 ; and in tary conditions; to close down the until corrections had been m a d e ; and to prosecute Second and F ou rth D ivision s F airbanks, respectively), $ 2 ,1 0 0 . (N o m e and D ifferentials es an unsafe m in e em ployers who refused to m ake corrections. tablished to account for cost-of-livin g variations in different geographical areas of the T erritory, investigate the cause of each fatal and serious still continues as show n b y accident im m ediately upon receiving notice o f it. the 1953 scale for teachers: F irst D ivision , $ 4 ,2 0 0 to $ 5 ,6 0 0 ; third he was given strict F u r thermore, instructions F or m a n y years, the Territorial M in e In specto r D ivision , $ 4 ,5 4 0 to $ 5 ,9 4 0 ; and Second and F ou rth was the labor law adm inistrator o f A lask a . D ivision s, duties were constan tly expanded. $ 4 ,8 0 0 to $ 6 ,2 0 0 . Furtherm ore, the to H is In 1919, the T erritory has had a teachers’ retirem ent system Legislature recognized the dual nature of his jo b since 1929, which is still in effect; and, in 1935, the and gave him the added title of ex officio L ab o r Legislature passed an act providing th at teachers Com m issioner. cann ot be required to state political or religious w ith m ine em ployees related prim arily to health affiliations. and safety, his added jo b of L a b o r C om m issioner T w o m a jo r protections were extended to T erri torial em ployees in the postw ar period. In 1946, Since his duties in connection gave him the sam e responsibilities over all the industries of A lask a . A lth o u g h he w as given the 53 extra w ork, he was n o t given a n y increase in F e d e ra l L a b o r L a w s salary, appropriation, or personnel to take care of the new duties. The M o s t Federal labor law s a pp ly in A lask a in the T h is arrangem ent continued sam e m anner and to the sam e extent th at th ey until 1941. 1923 Legislature appropriated $ 4 ,0 0 0 to do in the States. O ccasionally, agency policy enable the ex officio L a b o r Com m issioner to com or the fact of A la sk a ’s great distances and sm all pile statistics on all industries in A lask a , show ing population h ave lead to a difference in the m eth od the nature and severity o f all industrial accidents o f adm inistration. in A la sk a , the w age loss to em ployees and to em ployers, the am oun ts o f com pensation paid, and the cost of industrial insurance. T h e 1927 L egis lature m ade sweeping changes in the T err ito ry ’s w orkm en ’s com pensation law s on the basis of this The N a t io n a l L a b o r R elation s A c t confers upon the N a tio n a l L a b o r R elation s B oard jurisdiction over all in dustries in A lask a , b u t the N L R B recently an nounced th at the sam e jurisdictional standards report. A n integrated D ep a rtm en t of L a b o r w as finally established in A lask a in 1941. missioner was appointed b y the T h e first C o m G overnor and confirmed b y the Legislature to serve until Jan u ary 1, 1943. A Com m issioner of L a b o r was to be elected at the general election in 1942 and every 4 years thereafter. T h e purpose of the office w as to further, p rom ote, and develop the welfare of the w age earners of the T erritory of A lask a, to im prove their w orking conditions, and to R e la tio n s . L a b o r -M a n a g e m e n t advance their opportunities for profitable w ould app ly in the Territories as in the S ta tes.4 N o n e of the agen cy’s personnel h ave been stationed in the T erritory, b u t agents have been sent in as necessary to conduct representation elections and hearings on unfair labor practice charges. T h e arbitration and m ediation m achinery set up under F ederal law sim ilarly has operated in A lask a w ith stateside personnel in m o st cases. D u rin g W o r ld W a r I I , the Federal M ed ia tio n and Conciliation Service stationed one person in the T erritory during the sum m er m o n th s when labor disputes were m o st likely to occur and to have em ploym en t. In addition to the duties u sually im posed upon the D ep a rtm en t of L ab or, the Legislature ordered th at: “ I t shall be the d u ty of the Com m issioner the greatest econom ic im pact. been discontinued. Now , T h is practice has m ediators from the Federal Service stationed in the S tates are avail able on request of the parties. Sim ilarly, under of L a b o r to aid and assist resident workers in the R a ilw a y L a b o r A c t , representatives of the A lask a N a tio n al M ed ia tio n B oard h ave com e in from to obtain, safeguard, and protect their rightful preference to be em ployed in industries the States on those rare occasions when th ey were in this T errito ry.” needed to help resolve labor-m anagem en t dis A t present, the Territorial D ep a rtm en t of L a b o r putes of the W h ite Pass and Y u k o n Railroad, is charged w ith adm inistration of the laws on A la sk a ’s one privately owned rail com m on carrier. wage collection, wages and hours, child labor, safety measures, equal p ay , and fair em ploym en t practices, and the regulation o f private em ploy m en t agencies. T h e C om m issioner of L ab o r, as indicated, is Chairm an and E xecu tive Officer of b oth the A lask a Industrial B oard which ad R epresentatives of the U . S. D ep a rtm en t of L a b o r ’s B ureau of Apprenticeship and V eterans E m p lo y m e n t Service are currently stationed in the T erritory to adm inister the Federal law under their respective jurisdictions; the representative of the B ureau of V eteran s R eem p lo y m en t R igh ts handles its A lask an functions from Seattle. m inisters w orkm en ’s com pensation and the board T h e D e p u ty Com m issioner of C om pensation in which adm inisters benefits for sick and disabled Seattle fishermen under the D isab led F isherm en ’s F u n d. under the Longshorem en and T h e C om m issioner is also charged w ith the re A ct sponsibility of mediation*"of labor disputes. and cases in volving Federal em ployees are adm in 4 For discussion, see p. 58. handles and the w orkm en ’s D efen se B ase com pensation H arb or C om pensation istered from W a sh in g to n , D . C . cases W o rk ers’ A ct 54 L ab o r tion in the T erritory was reduced to the T erri Standards A c t passed in 1938 applies in A lask a torial R epresentative, who resigned in O ctober W ages and A lth o u g h H ou rs. the F air the sam e as it does in the States, no com pliance 1947. investigations were m ade in the T erritory prior R epresentative had been e m p lo yed ; he rem ained to 1941, and the Territorial Com m issioner of By th at tim e a V eterans E m p lo y m e n t the on ly representative of the D ep a rtm en t until M in es, ex officio Com m issioner of L ab o r, served M a y of 1948. as a source of inform ation and distributed litera investigators of the W a g e and H o u r and Public ture concerning the act. C on tracts D ivision s w ork full tim e. of investigators from In th at year, a group In the W a g e and H o u r and Public C on tracts D ivision s of the U . S. D e p a r t A t the present tim e, two resident G overn m en t construction, the prevailing wage law (D a v is-B a co n A c t ), the A n ti-K ic k b a c k m en t of L ab o r, cam e to A la sk a in the sum m er, A c t (C opeland A c t ), and the 8-h our laws apply m ade in A lask a as th ey do in the States. as m a n y investigations as possible, returned to the S tates in the fall. and In 1943, the ing agency is initially T h e contract responsible for the en first paid representative of the U . S. D ep a rtm en t forcem ent of these law s. In the last few years, of L a b o r in A la sk a was appointed to represent several investigations h ave been m ade at the re the entire D e p a r tm e n t; his staff consisted of a quest of contracting agencies b y U . S. D ep a rtm en t secretary of L ab o r personnel under the supervision of the and an in vestigator until D ecem b er 1946, when the D ep a rtm en t of L a b o r's representa Office of the Solicitor of L ab or. “ O n the evening of M a r c h 2 9 , 1867, [Edw ard D .] Stoeckl [the R ussian m inister to the U n ited States] called at [Secretary] Sew ard's h om e w ith the w elcom e news th at the C zar had given his consent to the transaction [the sale o f A lask a to the U n ited States], and suggested th at the treaty be concluded the n ext d ay . T h e eager Seward pushed aw ay the w hist table: “ ‘W h y w ait till tom orrow , M r . Stoeckl? “ ‘B u t you r D ep a rtm en t is closed. L e t us m ake the treaty to n igh t!' Y o u h ave no clerks, and m y secretaries are scattered abou t the to w n .' “ ‘N e v e r m in d th a t,' responded Sew ard. ‘I f y ou can m uster you r legation together, before m idn ight y ou will find m e aw aiting y ou at the D ep a rtm en t, w hich will be open and ready for business.' “ So, at 4 o'clock on the m orning o f M a rc h 30, 1867, the treaty was p u t into final form and s ig n e d ." Thomas A. Bailey, A Diplomatic History of the American People, 3d ed., New York; F. S. Crofts & Co., 1947 (pp. 398-399). ALASKA peak. T h e centers o f defense construction are A nchorage and F airban ks, the 2 m a jo r cities in The Character of Industrial Relations A lask a and the 2 largest cities along the line of the A lask a R ailroad. Prim e contractors h av e form ed the A la sk a C h apter of the A ssociated General C on tractors of A m erica. In addition, subcontractors covering plu m bing, electrical w ork, painting, etc., w ho are E d w i n M. F n ot included am ong the A G C itch em ployers, h av e som etim es organized their ow n trade groups. T h e construction trades generally are am ong the m o st stron gly organized in A lask a . T h e A la sk a C h ap ter o f the A G C conducts n ego tiations on w ages and working rules w ith tw o I ndustrial relations in A la sk a h ave developed principal groups of unions in the under the divergent influences of b oth private and tra d es: G o v ern m en t em p loym en t. 1. The basic trades (except carpenters), which include the operating engineers, teamsters, laborers, cement ma sons, ironworkers, lathers, plasterers, and bricklayers. The American Federation of Labor unions representing these crafts usually band together in their dealings with the general contractors. 2. The carpenters, who are represented by an associa tion of local AFL unions called the Carpenters District Council of Alaska. An estimated one-half of the construc tion workers in the Territory are carpenters. In recent years, they have preferred not to form a “ united front” with the other construction crafts but have conducted separate negotiations with AGC representatives. In private in dustry, aside from som e service industries, trade unionism is the rule rather th an the exception and generally has follow ed the basic pattern observed in the S tates. W o rk in g conditions, w orking rules, and p a y rates are usually determ ined b y collective bargaining, and unions h av e used strike threats as a m eans of supporting their dem ands. In contrast, G overn m en t em ployees, in A lask a as in the S tates, are predom in antly nonunion. T h e A la sk a R ailroad is the on ly exception to this construction generalization am ong F ederal agencies in the T e r ritory. (A n a tte m p t to organize the w age-board E m p loy ees w ho w ork for subcontractors are em ployees of the A lask a R o a d C om m ission w as organized in a group of unions which do n ot deal unsuccessful.) w ith G ov ern m en t trade unions h ave for the general contractors b u t directly w ith the m o st part lim ited their activ ity to lo b b y in g their im m ediate em ployers. for favorable em ployee legislation.1 the electrical workers, plum bers and steam fitters, T h ese unions include painters, sh eet-m etal workers, asbestos workers, P r iv a t e In d u s try and related crafts. N eg o tia tio n s betw een general contractors and T h e principal A lask a n industries from the view the basic trades are usually conducted in Seattle, p oint o f industrial relations are: (1) construction W a s h ., (predom inately for Federal agencies); (2) fishing transferred to A n ch orage. although occasionally th ey h av e been B ecause the A lask a and fish products, of w hich salm on is b y far the locals are perhaps too y ou n g to h av e developed m o st im p o rta n t; (3) lum bering (sawm ills and lo g strong local leaders, th ey are u sually content to g in g ); allow n ational and international union officials to (4) service trad es; (5) m in in g; (6) p u lp ; and (7) transportation. In spite of the im portance conduct their negotiations for th em . o f Federal agencies in A lask a , private em ploym en t T h e carpenters, on the other h and, h ave tended is 4 to 5 tim es as large as G o vern m en t em p lo y to break a w a y from Seattle control and are a m ore m en t. m ilitan t and less disciplined group. G enerally, the carpenter n egotiations h ave tended to be m ore Construction. In term s of payroll, m o st of the difficult than those w ith other basic crafts, p artly construction in recent years in A lask a has been for the m ilitary. T h e am ou n t o f such construc tion is still substan tial, although it has passed its 1 According to the 1955 Directory of National and International Unions (B L S Bull. 1185), 43 international unions reported a combined membership of 16,000 in Alaska. 55 371655— 56------ 5 56 because local leaders are less experienced and p artly because A lask a carpenter union officials ap groups w ith which the in dustry deals are the A lask a Fisherm en ’s U n ion and the nonresident p aren tly prefer to run the risk of less expert local C an nery negotiations w orkers; b o th o f these are affiliated w ith the C o n rather than accept control from W o rkers U n ion , representing gress o f In du strial O rganizations. Seattle. U n ion s representing the subtrades, usually con duct their negotiations w ith local subcontractors resident I t also deals on a nonresident basis w ith the A F L M ach in ists. P roblem s resulting from Seattle control h a v e b u t h ave on occasion negotiated w ith em ployer had associations such as the Association of E lectrical workers than on construction workers. Contractors. A lth o u g h the subcontractors em ploy a m on in dustry is, in fa ct, the o n ly large in d u stry in m uch sm aller n um ber of construction workers than A lask a which, in spite of the rapid grow th o f the the prim e contractors, com pleted negotiations be T errito ry ’s labor pool, regularly transports hun even m ore im p ortan t effects on cannery T h e sal tween subcontractors and their em ployees’ unions dreds of workers from Pacific coast ports to can frequen tly h ave set the pace for subsequent prim e- nery sites in the T errito ry. contractor negotiations. A tte m p ts b y contractor em ployers to secure a united front in labor nego tiations h ave thus far been no m ore successful than a ttem p ts to in stitute a united front on the part of the basic trades and capenters local unions. 1953, no m ajor construction strikes h ave occurred since 1950. In 1951, the D e p a rtm e n t of the Interior took the lead in the a tte m p t to overcom e the acrim ony th at had de veloped years. through disputes and strikes in prior W h ile the D e p a rtm e n t had no operating responsibilities in the field of labor except for its ow n em ployees, it sponsored, in cooperation w ith the D e p a rtm e n t of L ab o r, the Federal M ed ia tio n and Conciliation Service, the D ep a rtm en t of D e fense, and other interested Federal agencies, a series of m eetings betw een union and contractor representatives in A n chorage designed to estab lish a m ore peaceful basis for settling disputes. W h ile the influence of this som ew hat dram atic gesture can hardly be appraised, relations in the T err ito ry ’s construction in dustry h ave been m ore peaceful since th at tim e. T h e usual run of juris dictional disputes h ave been settled for the m o st part w ithou t resort to strikes. The in Seattle. C ollective A lask a n construction in dustry in this respect has a b etter record in recent years than do m a n y defense in bargaining w ith resident workers is usually conducted w ithin the area where th ey are em ployed. E x c e p t for an unorganized strike b y som e o f the carpenter locals in Practically all of the negotiations w ith unions representing the nonresident workers take place W h ile serious disputes h ave arisen in the industry, no m a jo r w ork stop page has occurred since the B ristol B a y strike of 1951. A n oth er in dustry closely related to the salm on in dustry and other fishing operations is the cold storage in du stry in southeastern A la sk a which processes fish of all kinds for freezing and oper ates cold storage w arehouses fishery ports. represented in the P an h an dle T h e cold storage workers are m a in ly by the independent L on gsh orem en ’s union. In tern ation al Serious disputes in this in dustry usually h ave been settled w ith relatively m inor w ork stoppages. Lum bering. tions Sm all logging and lum bering opera are found western and in the forestry southeastern areas o f b o th A lask a . The o n ly large operations are in the southeast, principally in the vicin ity of Juneau and K etch ik a n . Saw m ill em ployees are represented b y the L u m b er and Saw m ill W o rkers, a branch o f the A F L C arp en ters, and the loggers b y the In ternation al W o o d workers of A m erica (C I O ). stallations in the States. Service Trades. In the service trades unions are In dollar value, the strong am ong the culinary crafts and retail clerks salm on in dustry is b y far the m o st im portant of the in A la sk a ’s three largest cities, F airban ks, A n A lask a n fisheries. chorage, Fishing and F ish Products. I t extends from B ristol B a y through the A leu tian Islan ds, C o o k In let, and Juneau. In spite of organizing and drives no serious w ork stoppages h ave occurred T h e salm on in in recent years am ong A lask a service trade em d ustry each year signs nearly 30 different con ployees, except one which lasted for several w eeks tracts in Juneau in the fall of 1954. dow n into southeastern A lask a . w ith 17 unions. The principal union 57 M in in g . In value o f ou tp u t, the m o st im p ortan t T eam sters. Several n o t v ery successful a ttem p ts m ining areas in A la sk a are the Fairban ks gold have been m ad e m ining region and the H e a ly R iv e r and M a t a - local transit in du stry in An ch orage and F airbanks. nuska coal m ines along the A la sk a R ailroad . m a jo r gold-m in in g operator region is the U n ited in the The Fairban ks S tates Sm eltin g, Refining & M in in g C o ., w hich, abou t 30 years ago, b ou ght to organize em ployees o f the T h e em ployees of the certificated air carriers are well organized; the sam e union arrangem ents th at exist in b oth dom estic and foreign airline operations h ave been transferred to A lask a . up m o st o f the gold claim s around F airban ks. T h e on ly gold operations in the T erritory th at F e d e ra l G o v e rn m e n t h ave becom e unionized are those o f the com p an y in the F airbanks area. T h e A lask a Juneau h ard- rock m ine operated under union agreem ents prior unique contribution to the history of labor rela to its closing in 1942. The em ployees of this co m p an y organized under the auspices o f the In ternation al U n ion of M in e , M ill & Sm elter W orkers (a C I O affiliate prior to 1950 when it w as expelled on charges of C o m m u n ist d om in ation ), in severed relations because 1940, b u t in som e officers 1947 of the international failed to file n o n -C o m m u n ist affi davits under the T a ft-H a r tle y A c t . In 1949, the In ternation al B roth erh ood of E lectrical W orkers (A F L ) granted the c o m p a n y ’s m ine em ployees an industrial charter T h e A la sk a R ailroad, which is operated b y the U . S . D e p a rtm e n t o f the Interior, has m ad e a under which th ey are now tions in the T errito ry b y operating under labor agreem ents negotiated w ith trade unions repre senting its em ployees. T h is h istory o f collective bargaining began in the 1 9 2 0 ’s, when the railroad signed an agreem ent w ith one o f the railroad operating brotherhoods covering the hours, w ages, and working conditions of its train - and engineservice em ployees. Since th at tim e, the practice o f collective bargaining has grown until, at the present tim e, labor agreem ents signed by the representatives o f nine trade unions cover wages and working rules for alm ost all the em ployees operating. below the interm ediate supervisory and official P u lp . T h e building o f a $50-m illion pulp m ill in K etch ik a n m arked the first large-scale utilization o f A la sk a ’s enorm ous pulp resources. A lth o u g h ranks. T h ese are the standard railroad labor organizations, w ith the exception o f the A m erican Federation of G ov ern m en t clerks, E m p lo y ees, em ployed in an in fant in dustry, the loggers h ave represents m ain ten a n ce-of-w a y been organized b y the In ternation al W oodw orkers and bridge and building em ployees. which workers, E m p lo y ees in the pulp m ill Agencies of the D e p a rtm e n t o f the Interior are itself are represented b y the A F L P ulp and S ul n ot required under statu te to bargain collectively phite W o rkers. w ith o f A m erica (C I O ). T h is industrial union local is now being challenged b y A F L craft unions in represen representatives of their em ployees. The Secretary of the Interior, how ever, in 1948, issued tation election petitions filed under the provisions a statem en t of labor p olicy for the D e p a r tm e n t’s o f the T a ft-H a r tle y A c t . ungraded em ployees w hich perm its the m anage m en t of Interior agencies to n egotiate agreem ents Transportation. T h e largest transportation opera w ith union representatives of their ungraded em tion in the T errito ry is the A la sk a R ailroad which ployees, b u t w ith the condition th at labor agree is n ot operated b y private in d u stry ; its industrial m en ts m u st h ave the Secretary’s approval before relations program is discussed later in this article. th ey becom e effective.2 In privately ow ned transportation, the extent of T h e A lask a R ailroad in 1947 had already issued W h ite a statem ent of labor policy settin g forth labor Pass and Y u k o n R a ilw a y are generally represented relations standards su bsequen tly adopted b y the unionization by the varies. railroad E m p loy ees brotherhoods. trucking in A la sk a of the O ver-th e-road is stron gly unionized, with drivers and m echanics represented b y the A F L * Secretary for all Interior agencies. 1 9 2 0 ’s, these statem ents in fa ct on ly form alized m eth ods * Policy Memorandum Covering General Labor Relations Policy for Ungraded Employees of the Department of the Interior, January 16, 1048 (Office of the Secretary of the Interior). A s trade union relationships for the railroad had begun in the of dealing w ith em ployees which the m anagem ent of the railroad had been follow ing su bstan tially for a great m a n y years. 58 T h e A lask a R ailroad has had the usual run of has tended n ot to exercise jurisdiction over certain labor disputes in volving changes in w age rates Territorial enterprises w hich are engaged in inter and w orking rules as well as grievances arising o u t state com m erce, on the basis o f the sm all volu m e of the interpretation of w orking rules. F o r such of their operations. C u rren tly, the NLRB is grievances, a d ju stm en t board procedure has been follow ing the p olicy , laid dow n in a 1955 case in set up for train - and engine-service em ployees. volv in g a Puerto R ico concern,3 th a t the sam e U n d er the procedure an award is m ade b y a neutral standards o f jurisdiction a pp ly in the Territories p a rty , and is binding unless it is disapproved b y as in the several States. the Secretary. D isp u tes arising ou t of changes in w age rates T h e n um ber o f representa Representation Cases. or agreem ents are referred to the Secretary o f the tion cases in A la sk a during recent years has n o t Interior if th ey cannot be resolved on the property. been large. Subm ission o f a dispute to the Secretary is, in fact, organizing efforts rather than com peting unions. a pressure tactic w hich represents a kind of sub In a few cases, a contesting union has w on repre stitu te for the right to strike— n ot granted to sentation rights over an existing union and, in a Federal em ployees, o f course. few In form , this situ M o r e than h alf h ave in volved initial others, the m a jo r ity of em ployees v oted ation is n o t entirely fair to the unions, as the against union representation. Secretary is u ltim a tely responsible for the m anage th a t A laskan m en t o f the railroad. tractors, whether com p an y fisherm en or n ot, and In substance, it has som e therefore m ands h ave been m ore effective w hen presented T a ft-H a r tle y A c t .4 to the Secretary than when presented to held fishermen were independent con tim es been true in the p ast th at trade union de general m anager o f the railroad. The N L R B not considered em ployees under th e actions which the the T h e unions also h av e resorted to congressional lo b b y in g on issues w hich th ey h ave been unable to resolve in col E m p lo y e r U nfair Practices. unions h ave attacked through the unfair la b or practice provisions of the T a ft-H a r tle y A c t include refusal to bargain, discouraging or interfering w ith lective bargaining. T h e provisions in the labor agreem ents o f the union m em bership, and the circulation of an ti A la sk a R ailroad h ave been taken largely from union petitions. E m p loy ers h ave used the pro those in effect on private stateside carriers, which cedures T a ft -H a r t le y has often resulted in conflict w ith those Federal secondary personnel rules which are authorized b u t n ot re quired b y statu te. T h e railroad has fo u g h t a of the b o y c o tt, union A ct against a ttem p ts to the com pel discrim ination against an em ployee, and picketing. M a n y unfair practice cases in A lask a h av e in slow ly retreating b attle in m atters of this sort, v olved b u t thus far has m an aged to avoid conform ing to em ployers attem p ts by m a n y personnel m an agem en t conventions in vogue M o s t o f the unions in volved were in the con in m o st other Federal agencies. struction jo in tly field. unions to or b y enforce W h ere the the unions closed evidence has and shop. sup ported the charges, the N a tio n a l L a b o r R elation s T h e T a f t - H a r t le y B oard has consistently enforced A c t the a c t ’s pro hibitions against restricting the hiring to union Since the T a ft-H a r tle y A c t applies to the T e r m em bers. In several instances, em ployers h av e ritory of A lask a , it has produced the usual run of been ordered to hire and give b ack p a y to w orkers cases concerning representation, and charges of w ho were refused jo b s because th ey were n o t u nion unfair em ployer un m em b ers; in som e cases, either the union alone or u sually large num ber of the unfair practice cases the union and the co m p an y jo in tly h av e been and union practices. An h av e alleged violation of the T a ft-H a r tle y pro ordered to m ake good this b ack p a y . hibition o f the closed shop. closed-shop cases, the NLRB has In som e ordered the exclusion of the illegal closed-shop clause fro m N L R B Jurisdiction. U n d er the T a ft-H a r tle y A c t , future agreem ents.* the N a tio n a l L a b o r R elation s B oard has plenary jurisdiction over enterprises Territories. H o w ev er, in recent years, the B oard in U n ited S tates * Conrado Forestier, d. b. a. Cantera Providenda (111 N L R B 141, M ar. 4, 1955). < A laska Salmon Industry, Inc. (110 N L R B 145, N ov. 17, 1954). 59 T e r r ito r ia l struction which has m ade bidding for A lask an P r o b le m s contracts m ore sh arply com petitive. L a b o r relations problem s in A lask a m any respects resem bled those in the h ave in States. T h e T erri tory is ceasing to be regarded as an overseas base to which workers m u st be lured b y the prom ise of Som e labor problem s h ave arisen, how ever, ou t of extravagan t the som ew h at unique econom ic situation o f the practices of m ore w asteful d ays h ave continued, T erritory. tak e-h om e pay. W h ile the wage F orem o st am o n g these has been the there is a t least a p ossibility th at b oth unions and problem o f determ ining w h at constitutes a fair and m an agem en t will interpret the econom ic situation reasonable w age. in W h ile A la sk a has m ade striking econom ic progress in the p ast 10 years, it still a m ore reasonable ligh t as the am ount m ilitary construction continues to decline. of The exhibits the kinds of econom ic in stability charac transition teristic of ships, in com parison w ith stateside enterprise, will prices and w ages is in m a n y respects related to the obviou sly be difficult, b u t there is som e indication of a pioneer area. The econom ics to m ore norm al wage-price relation newness o f the coun try and its distance from th at em ployers m a y get a m ore sy m p ath etic a tti stateside m arkets. tude tow ard the problem s of this transition than th ey n ow expect. Construction W age L evels. T h e size o f the con struction in d u stry has, of course, had a trem en Seattle Control o f Trade U n ion s. dous unions, particularly in the construction in dustry, influence T erritory. on econom ic conditions in the W a g e rates h av e been agreed to at A lask an trade follow the p olicy o f absentee control. T h e influ levels exceeding construction w ages in the Pacific ence o f Seattle in union m atters has been justified N o rth w est b y $1 to $ 1 .2 5 and m ore per hour. on the ground o f the desirability o f relying upon H ig h contractor w age rates, in conjunction w ith the greater skill and experience o f Seattle union w h at has am oun ted to a guarantee of prem ium officials. overtim e labor relations h av e been m ore disturbed and dis for the relatively short construction F urtherm ore, it seem s to be true th at season, h ave produced earnings which h ave m ad e agreem ents m ore prolonged in the case o f the it difficult for year-round em ployers to negotiate carpenters, w ho h ave tried m ore than other con w ages w hich th ey regarded as reasonably related struction workers to to A lask an price levels and A lask a n p rodu ctivity. N everth eless, the desire for a m ore dem ocratic U n d o u b ted ly construction wages h av e played an control o f A lask a n union activities is increasing im p ortan t part in increasing the spread betw een and grow ing pains accom pan ying a n y shift from stateside and A lask a n w ages. Seattle A subsidiary w age problem has resulted from to local throw off Seattle control. responsibility are inevitable. W it h som e unions such as the International L o n g union a ttem p ts, successful in m a n y instances, to shorem en’s and require contractors in southeastern A la sk a to p a y the desire for local control has led locals to open ly the w age rates in effect in the A n ch ora g e-F air- d efy their nation al officers. banks area. Y e t , the cost o f living in A n ch orage W a reh o u sem en ’s U n ion Seattle control o f union affairs in the construc and F airban ks is from 10 to 15 percent higher than tion in dustry has been su bstan tially it is in m o st Panhandle cities. over the years. T h e construction in dustry has avoided com ing (In d .), weakened A t one tim e, an A lask an resident had to go to Seattle in order to be hired as a con to grips w ith the twin problem s of high wage rates struction and excessive overtim e largely because the F ederal W it h G o vern m en t has been its principal custom er. within A lask a , the n ecessity for p ayin g transpor As em ployee to w ork in the T erritory. the d evelopm en t o f a large labor m arket lon g as U n cle S am p ay s the bill, and w age rates tation for large groups o f workers to and from the and overtim e standards are reason ably uniform , T erritory contractors h ave a m in im u m of financial incentive grow ing labor m ark et, to resist union pressures. a u to n o m y will in evita b ly continue. has largely disappeared. the trend W it h tow ard this local O utside the T h is situation is changing w ith the grow th of a construction in dustry, local union a u to n o m y m a y labor pool in A la sk a and a decline in m ilitary con som etim es be even greater in A la sk a than in the 60 States m erely b y reason o f the greater distances A lask a over proposed reductions in hours o f w ork. in space and tim e to nation al and regional union A lso , som e contractors still insist on the necessity of long hours in the face o f h ea v y u n em p loym en t headquarters. w hich T h e tradition o f excessive over Other P roblem s. tim e, already referred to briefly, has created an in dustrial relations problem in A la sk a . T h e short has bankrupted com pensation fu n d .6 A la sk a ’s u n em p loym en t P art o f this u n em p loym en t has actually been caused b y high w age rates and excessive overtim e w hich h ave induced m ore A la sk a season and labor shortages in p ast years workers to com e to A lask a at their own expense h ave produced a long-hours h ab it of th ou ght which than the econom y of the T erritory could absorb. has been hard to break. F o r exam ple, it was freely T h e b attle over u n em p loym en t com pensation predicted th a t the 40-h ou r w orkw eek experim ent is itself a peculiar industrial relations problem , o f the A la sk a R ailroad in 1949 w ould n ot w ork. because it in volves legislation rather than collec T o d a y , it w ould h ard ly occur to anyone in the tive bargaining. rail-belt area th a t the p re-1949 hours, schedules torial L egislature, should be resum ed. em ployers lined up M o reo v er, A lask a n contractors are vulnerable In the 1955 session o f the T erri unions som e contractor against A lask a n and em ployers generally in a successful a ttem p t to keep un to additional w age dem ands occasioned b y their em p loym en t insistence on regular w ork schedules in excess o f em ployees, m a n y o f w h om spend their winters in benefits for seasonal construction 4 0 hours per w eek for w hich th ey m u st p a y pre the States. m iu m overtim e. construction u nem p loym en t benefits som ew h at b u t T h e A lask a R o a d C om m ission A com prom ise resulted in reducing p ointed the w a y to a solution in 1953 b y reducing still w ork schedules for those it regards as construction- em p loym en t benefits to go to nonresident seasonal ty p e workers. workers.• In the face o f com petitive neces allow ing a disproportionate share sities, the construction in dustry is slow ly adoptin g shorter hours. Y e t , strikes h ave been called in • For discussion, see p. 51. “ F u n d a m en ta lly , the A m erican people appear to h ave accepted [eventually] Sew ard’s trea ty because it w as dem onstrated to th em [through Sew ard’s cam paign of ‘education ’] th a t A lask a w as w orth the m o n ey . Y a n k ee love for a bargain and a h ighly developed speculative instinct were n o t to be denied. B r et H a rte caught the spirit: ‘ T ’ ain t so v ery m ean a trade W h e n the land is all surveyed. T h ere’s a right sm art chance for fur-chase A ll along this recent purchase, A n d , unless the stories fail, E v e r y fish from cod to w h ale; R o ck s to o ; m ebbe q u a rtz; le t ’s see,— Seem s I h ave heered such stories told: E h !— w h y , bless u s,— yes, i t ’s g o ld !’ “ H a rte w as right. T here are few to d a y w h o, on econom ic grounds a t least, will accuse Seward of fo lly in h avin g b ou g h t this princely dom ain for one and nineteen -tw en tieth cents an acre.” Thomas A. Bailey, A Diplomatic History of the American People, 3d ed., New York, F. S. Crofts & Co., 1947 (p. 404) of un HAWAII D e te r m in in g Economic Forces and Growth Prospects F a c to rs in th e I t is virtu ally a truism E c o n o m y th at a co m m u n ity 's econ om y mirrors the conditions under w hich it develops. W o r ld In H a w a ii, too, before the beginning of W ar II, the econ om y had successfully adapted to the fram ew ork o f conditions which have determ ined its character— resources, location, p op ulation, and political and econom ic ties to the Ja m e s H. Sh o e m a k e r U n ited States. B ecau se H a w a ii lacks industrial m in Resources. erals and fuels, its productive activities h ave been lim ited m a in ly to agricultural products. N o island community has m o v ed from a prim itive to a m odern statu s in so short a period as has H a w a ii.1 Prim arily, this grow th has centered around one basic change— the transform ation of an isolated; self-sufficient econom y to a m a ss- production, h ighly specialized agricultural econ o m y closely tied to the rise in H a w a ii's trade w ith the U n ited States. W it h the continued expansion o f air and surface transportation, these develop m en ts will accelerate. T h e Islan ds n ow generate $ 300 m illion in “ internal in c o m e " annually, in addition to approxim ately $ 7 0 0 m illion o f incom e derived each year from business w ith the m a in land (chart 1). T h u s, H a w a ii is a b illion-dollar-a- year econom y. Significantly, over n ine-tenths of the grow th in production (principally in pine apples and sugar), em p loym en t, and incom e dur ing the 177 years of H a w a ii's history has occurred within the last 83 years. In this period since 1872, the labor force also grew rapidly, stim u lated b y the burgeoning Islan d econom y and sharply increasing population through im m igration and a favorable birth -death ratio. P reviously, from an estim ated 3 0 0 ,0 0 0 in 1778 (when the Islan ds were discovered), population h ad declined continuously to an alltim e low o f 5 6 ,0 0 0 ians in 1872, including over 2 ,0 0 0 p a r t-H a w a i- and 4 9 ,0 0 0 n on -H aw aiian n ative population H aw aiian s. num bered Thus less the than 6 ,0 0 0 , w ith nearly h alf o f this group being Oriental. B y contrast, the racial com position o f the h alf a m illion population in H aw aii in 1955 is estim ated Sharp variations in topography, soil, and rainfall restrict intensive cultivation to less than o n e-ten th o f the to ta l land area. The cultivated area is enor m o u sly productive, how ever, because of a large su pply o f ground w ater for irrigation and y earround sum m er weather. W it h such resource lim itations, production in H aw aii has centered in the m ass production of sugar and pineapples, the m o st profitable crops th a t h ave been developed. Sugar w as the pri m a ry factor in creating the close trade relations w ith the U n ited S tates th at resulted in the annexa tion of H a w a ii b y the U n ited S tates in 1900. It has continued to be H a w a ii's largest co m m o d ity export (chart 2 ). T h e grow th o f the pineapple in dustry to a m ass production level occurred later. T h e k ey to its expansion w as the G inaca m achine, invented in 1913, to peel and core the fruit. Since then, H a w a ii has continued to produce m ore canned pineapple than all other areas in the world com bined. Location. H a w a ii's central position in the Pacific m akes it an o u tp ost o f national defense, a tourist center, and a center for shipping and airlines. T hese activities provide a substan tial part of the Islan ds' total incom e. D efen se activities did n o t becom e an im portant incom e source until the 1 930's. T hereafter, they increased sharply until 1941, when th ey becam e the principal stim ulus to H a w a ii's econom y. In the p ast 3 years, these activities h ave provided a to be as follow s: Japanese, 3 7 .6 p e r c e n t; Caucasian, 2 0 .2 p ercent; H aw aiian and p art-H aw aiian , 19.1 p ercent; F ilipino, 12.4 p ercent; percent; and all others, 4 .1 percent. Chinese, 6.5 1 For a comprehensive account of the historical development and char acteristics of the island economy, see The Economy of Hawaii in 1947 (with special reference to wages, working conditions, and industrial relations), B L S Bull. 926, 1948. 63 371655— 56------- 6 64 Chart 1. H o w fH a w a ii Earns a Living, Sources of Incom e, 1 9 5 4 65 Chart 2 . Long-Term Trends in H a w a ii's Economy P in e a p p le Exports Dollar Value M IL L IO N D O LLA R S 1 9 0 5 -1 9 5 4 Estimated Com m odity Exports and Imports M IL L IO N D O L L A R S $400 300 200 1875 ’85 ’9 5 T 9 0 5 * 1 5 ’25 ’35 ’45 1954 • F i s c a l Y ea r UNITED STATES DEPARTMENT Of LABOR BUREAU OF LABOR STATISTICS Sources: Sugar E xports— Hawaiian Sugar Planters' Association. P in eapp le Exports— (1) 1905-1945, U . S. Department of Commerce; (2) 1955, Department of Business Research, Bank of Hawaii. Commodity Exports and Im ports— (1) 1875-1895, Hawaiian Customs records; (2) 1905-1945, U . S. Department of Commerce; (3) 1955, Department of Business Research, Bank of Hawaii. Visitors* Expenditures— Research Committee, Hawaii Visitors Bureau. 66 p redom in ant share— over a quarter o f a billion effective dollars— of the area's to ta l annual incom e. form u latin g workable relations between labor and T ou rist trade rose gradually throughout the econom ic m an agem en t, policies and of in govern m ent, developing of cooperation 1 920's and 1 9 3 0 's, w as abru ptly suspended during th roughout W o r ld W a r I I , and expanded sharply after the war the picturing o f H a w a ii as an island paradise, ended. racial T ou rist expenditures in H a w a ii, which am ou n ted to only $6 m illion in 1946, will p ro ba b ly exceed $55 m illion in 1955, and are increasing. the tensions evident. business and co m m u n ity . antagonism s D esp ite are clearly N everth eless, these racial groups bring In to the H aw aiian econom y a broad range o f in addition, shipping and airlines presently account herent abilities and contacts w ith other parts of for approxim ately $25 m illion of revenue annually the w orld, thus providing the basis for creating in the T erritory. a rich and unique culture based on interracial cooperation. P opu lation . contains N o other area o f the U n ited States such Oriental and a w idely v arian t population of O cciden tal racial groups w orking together to earn a living. Political and Econom ic T ies. The su bstan tial contribution m ad e b y the U n ited States to the T h e racial diversity, grow th and developm en t o f the H aw aiian econ how ever, com plicates the problem o f achieving o m y — b oth as a m arket for H aw aiian products Chart 3. C ivilian and M ilita r y Payrolls and A rm e d Forces Expenditures/ H a w a ii, 1 9 3 9 -5 4 MILLIONS 1939 MILLIONS ’40 41 ’42 UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS ’43 ‘44 1945 ’46 ’48 ’49 1950 ’51 ’52 ’53 1954 Includ ing purchases and contracts Sources: Civilian and Military Payrolls— (1) 1939-1952, Income of Hawaii, U. S. Department of Commerce, Office of Business Economics, 1953; (2) 1953, mimeographed supplement to Income of Hawaii, op. cit., issued in August 47 1954. Total A r m e d Bank of Hawaii, Forces Expenditures — Department of Business Research 67 and as a source of su pply for H aw aiian industry— T h e second unstable elem ent in the H aw aiian has m ad e it possible for the Islan ds to achieve econom y high per capita p rodu ctivity and m odern living dependence on shipping. standards. T h is integration is reflected in the grows out of the Isla n d s’ extrem e R ep ea ted interruptions to shipping, prim arily due to lab or-m an agem en t follow ing develop m en ts: the expansion o f m a in disputes in H a w a ii or on land m arkets for Islan d p ro d u cts; the grow th of C o a st, h ave h ad tem porary b u t substantial dis Islan d ru ptive effects on the econom ic life o f the T erri branches of m ain land firms and the the m a in la n d ’s W e s t general expansion o f m ain land business a ctiv ity tory. in m en tal or other action, is necessary to avoid a H aw aiian o f labor m a rk ets; and the increasing capital betw een m o b ility H a w a ii and the C o n tin u ity o f shipping, assured b y govern retarding effect on econom ic developm en t. m a in la n d ; the rising level of m ain land visitors to H a w a ii; and the grow th of the political im portance P o s tw a r G ro w th o f H aw aii and of w orking relations betw een the Territorial and Federal G overnm en ts. T hese problem s h ave n o t kept H aw aii from achieving a rem arkable record of postw ar econom ic U n d e r ly in g expansion, m ore than proportionate to th a t for I n s t a b ilit ie s the U n ited H a w a ii’s econom ic position is vulnerable because of two underlying instabilities. S tates as a w hole. T h is record is reflected in an unprecedented rise in the n um ber M o s t im p ortan t o f m odern, w ell-equipped hom es, and the rapid is its dependence on defense activ ity as a m a jo r spread in the ownership o f m otorcars— from 1 car incom e source. for every 7 persons in the population to a ratio o f A lth o u g h it seem s certain th a t H aw aii will continue as a m a jo r ou tp ost o f national 1 to 3. defense, fluctuations in per capita use of telephones and electric appliances, the volu m e o f defense C om parable grow th has occurred in the a c tiv ity affecting the Islan ds will require local and economic, readjustm en ts. docks, and airports. H ow ever, a sizable cu t in the construction of schools, h ighw ays, T h ese advances h ave con back in m ilitary expenditures, perhaps ranging tributed to H a w a ii’s rising standard o f living which from $50 m illion to $10 0 m illion in 1 year, w ould to d a y create a m a jo r econom ic problem . U n ited States. T w o d evelop com pares fa v o ra b ly w ith th a t in the m en ts th a t affected defense activities in H a w a ii T h e long-range econom ic outlook in H a w a ii is in recent years illustrate the im p act on the Islan d expected to resum e its upw ard trend which was econom y of m a jo r changes in m ilitary program s interrupted b y a m ild recession during J uly 1953 (chart 3 ). to July 1954 from the peak business levels in the F rom 1948 through 1950, as a result of continued cu tbacks in defense em p lo ym en t and expenditures, H a w a ii experienced the m o st u n em p loym en t in its h istory. decision in O ctob er 1954 to severe period of spring of 1953. In 1954, there w as a m ild decline o f $6 m illion in the value o f the export of sugar and pin eapples; B y contrast, the a sharp decline in the expenditures o f the A rm ed transfer the 25th Forces (from $271 m illion to $ 237 m illio n ); and D ivision from the O rient to H a w a ii resulted in a a rise in the volu m e of tourist trade to $49 m illion. sudden increase o f $36 m illion in annual defense E stim a tes of econom ic activities in 1955, how ever, expenditures in H aw aii. A n effective plan for m itigatin g the effects of indicate th at th ey w ill equal or exceed 1953 levels. A rm ed F orces’ expenditures in H a w a ii h ave again su bstan tial declines in defense activities w ould be increased su bstan tially. readily available through a “ sta n d b y p rogram ” apple h arvests are running a t som ew hat higher providing for w ater conservation and irrigation levels than in 1954 and tourist trade for 1955 is projects. estim ated at over $5 5 m illion, an alltim e high. A com prehensive program o f this type A lso , sugar and pine w ould create direct em p loym en t to counteract a Paralleling the expansion o f the business activi sharp cu tback in defense ou tlays and, when the ties th at are geared to “ m ain land dollars,” there projects were com pleted, w ould provide a per has been a grow th o f co m m u n ity facilities and m a n en tly higher level o f resources, production, production to serve local needs. and em p loym en t in agriculture. surface and air tran sportation, C om m u n ication , electric power, 68 wholesale and retail distribution, and other serv C u rren tly 6 ,0 0 0 students graduate from high ices for Islan d residents h ave been m odernized as school each year. rapidly as resources p erm it. grades indicates th at this figure will rise to well lim ited a m ou n t of F o o d crops and a construction m aterials also over 9 ,0 0 0 by Present enrollm ent in the lower 1965 (allow ing for the norm al h av e been produced for local use. n um ber o f “ dropou ts” ). P o s s ib ilit ie s uates becom e part o f H a w a ii’s labor force upon O n ly abou t 4 0 percent o f the high school grad fo r L o n g -R a n g e G ro w th graduation. T o u rist trade is the m o st rapidly grow ing seg m en t o f the H aw aiian econom y to d a y . Should H a lf o f th em go on for further train ing and education and the rem aining ten th enter m ilitary service. M o s t o f these latter tw o groups, this expansion continue at its present rate, it is how ever, enter the labor force after com pletin g estim ated th a t the incom e from tourist trade will their training, or upon return from m ilita ry service. exceed th a t for the sugar in dustry b y 1965. In In addition, a high percentage o f m arried and u n recognition o f its expanding econom ic statu s, re m arried w om en in H a w a ii are e m p lo y e d ; th ey search studies h av e been undertaken to analyze account for nearly a third of to ta l e m p lo ym en t in the econom ic factors affecting the tourist trade the Islan ds. and to propose m eth od s for m ain taining it a t a high level. H aw aii has an extraordinarily y ou th fu l p op u la tion. N e w agricultural exports in the form o f flowers T h e census o f 1950 show ed th a t h alf o f the people in H aw aii were less than 25 years o f a g e ; and foliage (m ade possible b y air freigh t), p ap a y a, to d a y this figure is even low er. tropical fruit juice concentrates, coffee, and fresh as a w hole, the average age is sligh tly over 3 0 . pineapple are contributing to the grow th in the dollar volu m e o f m inor exports o f H a w a ii. To F o r the N a tio n B ased on these data it is estim ated the Isla n d s’ labor force will increase approxim ately 50 percent effect this expansion, it is essential th a t new w ater b y 1970. conservation and irrigation projects be carried for grow th depends principally on the future level of w ard. defense a ctiv ity in H aw aii. T h is is being accom plished b y the “ H a w a ii Irrigation A u th o r ity ” established in 1953. W h eth e r the econom y can absorb this A ssu m in g no signif In ad icant change from the present level, the possi dition, b yp ro d u cts from the w astes of the sugar bilities for econom ic grow th previou sly described and pineapple industries already h ave been d evel provide an assurance th at production, incom e, and oped and new ones are being studied. em p loym en t can be increased to m ake ro o m for O th er d evelopm en ts on the Islan ds also augur well for an expanding econ om y. T h e processing the growing labor force. B u t this grow th will require broad and aggressive co m m u n ity su pport o f im ported raw m aterials (to replace m ore costly to form ulate and direct program s for the develop finished m en t of the Islan d econom y. im ports) is a grow ing in dustry. The S tandard O il C o . o f California is planning the construction o f a $30-m illio n refinery. A n d ex S u m m a ry o f U n d e r ly in g T re n d s pansion o f farm produ cts for sale in the H o n olu lu m ark et grow th . for Several prim ary trends are evident in the ex (H aw aii still im ports tw o-thirds o f the panding integration o f H a w a ii into the m ainland provides still another opp ortu n ity dollar value o f the food consum ed locally.) m arkets. T hese are: (1) urbanization, which in creasingly centers the econom ic a ctiv ity o f each A b s o r p tio n o f th e G r o w in g Islan d in its principal cities; (2) a gradual unifica L a b o r F o rc e tion of all Islands into a m etropolitan area based T h e lon g-run expansion in H a w a ii’s population on interisland air service centering in H o n o lu lu ; question (3) a continued grow th o f H aw aii as the central w hether the rate o f econom ic grow th in the I s Pacific port for surface and air tran sportation ; and labor force raises the significant lands is sufficient to m eet the increasing pressures (4) a rise in the relative im portance o f tourist for jo b s. trade, stim ulated b y air tran sportation ; (5) the H a w a ii’s birthrate in 1954 was 3 3 .7 per th ou increasing application o f scientific m eth ods and o f sand (1 6 ,2 0 0 live b irth s), or a bou t 8 percent higher m echanization, spreading from the basic p lan ta than the birthrate for the U n ited S tates. tion industries into all phases of production in the 69 T err ito ry ; (6) increasing per capita p ro du ctiv ity , stripped b y the grow th in H a w a ii’s w ork force. a rising level o f wages and salaries, and a resultant I f the Islan ds are to provide stab ility of em p loy rise in living standards, accom panied b y a change m en t for the labor force o f the T erritory, com from O riental to A m erican m odes o f liv in g ; (7) a m u n ity support for program s o f econom ic expan marked increase in Islan d govern m ent em p loym en t sion are essential. and services, resulting in a rising level o f ta x ation ; trend— a gradual widening o f the econom ic base T h is w ould create still another (8) an expanding flow of high school and university b y the diversification of productive effort into the graduates into business life, creating an increas follow ing in gly a tourist tra d e; the m anufacturing o f m ore goods grow ing awareness of the necessity for program s and the provision o f m ore services for local u se; urgent designed to em p loym en t create p ro b lem ; new form s of and (9) production, em p lo ym en t, and incom e. activities: a continued expansion in the d evelopm en t o f new exports; the d evelopm en t o f byproducts in the sugar and pineapple indus D esp ite this expansion, the grow th o f em p loy tries; and the processing of im ported raw m ater m en t in H a w a ii’s basic industries has been ou t ials to take the place o f costly finished products. “ T h e T erritory o f H a w a ii has four counties: H a w a ii, H o n olu lu , K a u a i, and M a u i. H a w a ii C o u n ty is coextensive w ith the Islan d o f H aw aii, H o n olu lu C o u n ty — the legal designation o f which is ‘ C it y and C o u n ty o f H o n o lu lu ’— consists of the Islan d o f O ah u (as well as a n u m ber of v ery sm all, u npopulated islands). N iih a u . M aui K a u a i C o u n ty includes the Islan ds o f K a u a i and C o u n ty com prises the Islands o f M a u i, and K a h oo law e, which is uninhabited. L an ai, M o lo k a i, ( M s o included w ith M a u i C o u n ty is the peninsular area of M o lo k a i officially designated as ‘K a la w a o C o u n t y ,’ which consists o n ly o f the K a la u p a p a L eper Settlem en t.) . . . “ P opulous H o n olu lu C o u n ty , w ith less than 10 percent of the land area, receives over three-fourths o f the T errito ry ’s total incom e. H a w a ii C o u n ty — the ‘B ig Isla n d ’— has three-fifths of the T erritory and accounts for 10 percent of total incom e. the B y contrast, land area of W h ile the distri bution o f p op u lation is the m ain factor, contributing appreciably to H o n olulu C o u n t y ’s high share o f the total incom e is a per capita incom e ranging from one-third to on e-h alf above th at o f the other three counties. T h e la tter are predom in an tly rural, w ith plan tation farm ing b y far the principal source o f e m p lo y m en t.” Charles F. Schwartz, Assistant Chief, National Income Division, Office of Business Economics: Income of Hawaii, A Supplement to the Survey of Current Busi ness, U. S. Department of Commerce, Office of Business Economics, Washington, 1953. HAWAII T h e labor force has also grow n rapidly, a lm o st doubling from 1920 to 1950. Characteristics of ever; con com itan tly a noticeable shift in the sex com position of the labor force has taken place (table 1). the Labor Force A g e E C. P d w i n T h e rate o f la b o r - force grow th has been declining sharply, h o w e n d l e t o n a n d S e x C o m p o s itio n T h e m edian age o f the total popu lation w as 2 4 .9 years in 1950 com pared w ith 3 0 .7 years for the U n ited S tates. Furtherm ore, for the sam e census year, one-half of the popu lation w as under the age of 25 com pared to 4 1 .9 percent for the U n ited R apid growth has m arked H a w a ii’s population and labor force during the p ast several decades. T h e expansion in the labor force is n ot likely to be reversed in the near future because of the in States. An age distribution of the H aw aiian labor force points up the y ou th fu l character of the population (table 2 ). T able 2.— P ercentage d istribution o f the labor f o r c e , b y age a nd sex, T erritory o f H a w a ii, 1 9 4 0 a nd 1 9 5 0 creasing annual rate of entrants to the labor m a r ket, and, com pared w ith the U n ited States, the 1940 Total population and the labor force. The ized labor-force by w om en the grow th relative workers and has and the been absolute character increase of continued fairly high participation rates, particularly for w om en and for low er age groups. M o reov er, there has been a rapid occupational and industrial shift a w ay from agriculture, offset by increased em p lo y m en t in govern m ent, services, and trade. Since 1950 Age group you n ger than average age com position of both the Men W o m e n Total Men Women All ages_____ _______ 100.0 100.0 100.0 100.0 100.0 100.0 14-24 years......... 25-34 years__________ 35-44 years---------45-54 years.......... 55-64 years__________ 65 years and over... . 29.7 30.0 19.8 11.9 6.4 2.1 28.0 31.2 19.7 11.7 6.9 2.4 37.2 25.1 19.9 12.5 4.4 .9 23.1 29.8 23.6 14.7 6.8 1.8 20.9 29.6 24.8 15.3 7.4 2.1 30.5 30.3 19.9 13.0 5.2 1.0 N o t e . Because of rounding, sums of individual items do not necessarily equal 100. Source: Bureau of the Census. civilian em p lo ym en t in private in dustry exhibits F or age groups through 4 4 years, the percent lo n g-tim e stab ility, the influence of Federal G o v ages o f participation for the total labor force as ernm ent a c tiv ity on em p loym en t and incom e is well as for m en and w om en generally are higher for outstanding. H aw aii than for the U n ited States. F or exam ple, F o r the h alf century 1900 to 1950, the total in 1950, 5 0 .5 percent o f all m en and 6 0 .8 percent population of H aw aii increased a b o u t three and o f all w om en in the Islan d labor force were in the P opulation declined on ly in the 14 through 34 age group, while the corresponding postw ar years 1948 to 1952, m ain ly because of the percentages for the U n ited S tates were 4 1 .0 and outm igration of warworkers. 4 7 .4 . T able data on the you th fu l com position o f the population a quarter tim es. T h e im portan t im plication to be drawn from the 1.— P o p u la tio n a nd labor fo r c e , and labor-force d istribu tion by sex , T er rito r y of H a w a ii, percen t changes, 1 9 1 0 - 5 0 and labor force is th a t as the large n um ber o f workers in younger age groups m o v e into Percent change from 10 years earlier Percentage distribution of the labor force Year Popula tion 1920-.................................. 1930.................................... 1940____________________ 1950............................ . 33.4 43.9 14.9 18.1 i N ot available. 70 Labor force 0) 38.1 22.2 10.5 decrease significantly. T h is influence is based on the present school p o p u la tio n ; Total 100.0 100.0 100.0 100.0 M en 87.3 88.5 80.6 75.5 W om en 12.7 11.5 19.4 24.5 Source: Bureau of the Census. th e m iddle-age groups, the younger age groups w ill n o t the n um ber of school separations will m ore than double in the n ext 10 years. A p p ro xim ately 37 percent of those graduated from high schools enter im m ed iately into the labor force and, w ithin 18 m o n th s, 45 percent of the graduates are in the labor force. 71 F o r this reason, pressure for jo b s will continue, if not increase. F urtherm ore, the absolute and In 1950, the labor-force participation rate for the U n ited S tates w as 5 3 .4 percent com pared w ith relative num bers of w om en in the labor force are 5 9 .2 n ot expected to decline. T h is conclusion is predi for H aw aii has declined m ore rapidly than th at cated on several factors, including the traditional for the U n ited S ta te s; for H a w a ii, the decline fo r for H a w a ii. Since 1 9 20, how ever, the rate seasonal em p lo ym en t o f large num bers of w om en m en w as 11.6 percentage points. in the pineapple in dustry and the fa ct th a t m a n y rate for m en w as on ly 0 .5 percentage p oints higher B y 1950, this w om en seek em p lo ym en t to im prove their eco for H a w a ii than for the U n ited nom ic status. 1930, the w o m en ’s participation rate for H aw aii R a c ia l higher than th a t for the U n ited States. States. A fte r increased and in 1950 w as 4.1 percentage p oints C o m p o s itio n T h e T errito ry ’s racially heterogeneous pop u la tion is reflected in the com position of the labor force (table 3 ). H o w ev er, because clear-cut defini tions of “ racial” classifications are n o t feasible (m a n y people in H a w a ii h ave two or m ore “ racial” strains), analysis o f labor force and population problem s in term s of racial com position w ould be m isleading and confusing. A lso, the data pre sented below do n ot carry a n y im plications as to the character of em p lo ym en t and u n em p loym en t A n analysis o f labor-force participation rates b y age groups (at 10-year age intervals) shows th at, for groups up to 4 5 years, the rates for w om en in H aw aii are above corresponding age-group rates for the U n ited States as a whole. T here is no indication th at this relationship is likely to be reversed. W it h respect to em p loym en t and u n em p loy m en t trends, the im plication to be drawn from these data on H aw aiian labor force participation rates is th at the Islan d econom y m u st h ave, or as far as “ race” is concerned. create, p roportion ately m ore jobs than the m ain T able 3.— R a cial co m p o sitio n o f the p o p u la tio n and labor fo r c e , and labor-force p a rticip ation rates, b y race, T erri to ry o f H a w a ii, 1 9 4 0 and 1 9 5 0 land. T h is is an additional reason w h y the rate o f econom ic grow th in H aw aii is an im p ortan t problem , Percentage distribution Population, 14 years and over Race Labor force, 14 years and over Labor-force par ticipation rate particularly for the private sector of the econom y. E m p lo y m e n t- U n e m p lo y m e n t 1940 1950 1940 1950 1940 A ll races.......... ....... ............ 100.0 100.0 100.0 100.0 100.0 100.0 Hawaiian 1......... ........... __ Caucasian_______ _______ Chinese_________ __ ___ Filipino_________________ Japanese _ __ _________ _______________ Other 12.3 28.3 7.0 13.2 35.8 3.5 13.6 25.3 6.7 12.7 37.6 4.1 9.5 30.9 6.0 17.5 33.2 2.9 11.1 27.3 6.3 15.4 36.2 3.7 48.1 68.1 53. 9 2 82.6 58.0 51.8 48. 5 63. 9 56.0 71. 7 56.9 52.3 1950 1 Includes part-Hawaiians. 2 This rate is high because most of the Filipinos were previously imported male plantation labor. In the 1940 population, 14 years old and older, there were 6 Filipino males for every Filipino female. 3 Korean, Negro, Puerto Rican, and other Polynesian. N o t e . Because of rounding, sums of individual items do not necessarily equal 100. Source: Bureau of the Census. T re n d s A s a result o f the im p a ct of W o rld W a r I I , the proportions of the total H aw aiian labor force unem ployed from 1940 through 1947 were sub stantially below those for the U n ited States. F or T able 4.— P ercen ta ge d istribu tion o f the p o p u la tio n b y laborfo r c e status a nd s e x , T erritory o f H a w a ii and the U n ited S ta tes, 1 9 2 0 - 5 0 Hawaii United States Labor-force status and sex 1920 1930 1940 1950 1920 1930 1940 1950 Both sexes L a b o r-F o rc e P a r t ic ip a tio n R a te s F o r purposes o f view ing the actual and potential labor force in term s of jo b opportunities, a useful trend m easure is the labor-force participation rate, or the percent o f the total population in the labor force. I t is significant th a t the labor-force partic ipation rate for H aw aii historically has been con siderably higher than th at for the U n ited States (table 4 ). Population, 14 years and over. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 In labor force______________ 66.0 63.7 62.4 59.2 55.6 54.5 52.2 53.4 N ot in labor force_________ 34.0 36.3 37.6 40.8 44.4 45.5 47.8 46.6 M a le Population, 14 years and over_ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 In labor force_______ ______ 91.0 86.1 82.7 79.4 86.4 84.1 79.0 78.9 N ot in labor force_________ 9.0 13.9 17.3 20.6 13.6 15.9 21.0 21.1 Fem ale Population, 14 years and over. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 In labor force______________ 22.8 21.2 30.9 33.1 23.3 24.3 25.4 29.0 N ot in labor force....... ......... 77.2 78.8 69.1 66.9 76.7 75.7 74.6 71.0 Source: Bureau of the Census. 72 T able 5.— C ivilia n labor fo r c e : A verag e n u m ber o f p erson s em p lo ye d and u n em p lo yed , T erritory o f H a w a ii, 1 9 4 5 - 5 4 [In thousands] Total labor force Year Employed labor force international tensions, Unemployed labor force Unemployed as percent of total labor force 1.5 2.1 3.0 9.5 21.4 17.7 8.3 8.4 9.5 11.8 0.65 1.09 1.50 4.81 10. 77 9. 40 4.31 4.31 4.87 5.96 Source: Financing Unemployment Insurance in Hawaii, 1954, prepared for the Bureau of Em ploym ent Security, Territory of Hawaii, Department of Labor and Industrial Relations (unpublished manuscript). H a w a ii, th e y ranged from 0 .6 5 to 4 .4 5 percent com pared w ith 1.2 to 14.6 percent for the U n ited F ro m 1948 through 1954, how ever, the u n em p lo y m en t rates for H aw aii were consistently above those for the U n ited S tates and in recent years show ed som e ten den cy to stabilize betw een 4 and 6 percent (table 5 ). T h is trend poses a significant problem for H aw aii despite the sub stantial rise in the level o f econom ic a ctiv ity since prewar y ears.1 from fu n d am en tal conditions peculiar to H aw aii. absorb (1) T h e in ability of the econ om y to the increasing num bers of y o u th fu l en trants into the labor force in addition to a general rise in the labor fo rce; of the to help m eet the em p lo ym en t dem ands of the S e a so n a l F a c to rs Seasonal variation in em p lo ym en t is n o t n ow a significant problem in H aw aii. I ts industrialized agriculture is considerably m ore stabilized than agriculture elsewhere in the Pacific area. P la n ta tion operations h ave been so organized as to lessen considerably the seasonal crop labor-force variation produ ction . Seasonal requirem ents in pineapple canning are easily m e t because the canning season occurs during the sum m er m o n th s when students are available for tem porary jo b s. anticipated B ecause o f drought and lack o f m ark et expansion, the pineapple in dustry w as n ot able to em p loy the usual n um ber of sum m er workers in 1954. T h ese statem en ts concerning the ten den cy tow ard seasonal la b orforce sta b ility are valid despite the considerable fluctuation T h e u nfavorable u nem p loym en t situation arises T h ese are: expansion growing labor force. th a t u sually m arks S tates. and tourist industries and service trades are expected 229.3 192.9 193.3 186.9 177.6 170.6 184.2 186.8 186.4 185.5 230.8 195.0 196.3 196.4 199.0 188.3 192.5 195.2 196.0 197.3 1945.......................... 1946.......................... 1947........ .................. 1948.......................... 1949.......................... 1950— .........- .......... 1951— ..................... 1952.......... ................ 1953______________ 1954.......................... G o vern m en t expenditures, arising from continued pineapple in m o n th ly canning and e m p lo ym en t figures for pineapple plan tation s. T h e seasonal labor dem ands are n o t m e t b y large supplies o f m igratory seasonal labor as in m a n y m ainland areas, b u t b y local workers w ho are n o t p art of the regular labor force. (2) significant in dustry changes— prim arily the im pact o f m echanization in the sugar, pineapple, and construction indus T able 6.— O ccu pa tion a l d istribu tion o f the em p lo ye d labor fo r c e , T erritory o f H a w a ii , 1 9 4 0 a nd 1 9 5 0 tries, w hich has resulted in a substan tial reduction Percentage distribution in the labor force in those industries since 1 9 3 9 ; (3) the erratic and unpredictable level of Federal G o vern m en t em p lo ym en t, w hich has been tendency toward a decline in em igration; and (5) the m arked stability of the total civilian labor force in private industry. long-run im plication o f H a w a ii’s stable civilian labor force is th at private in dustry has n ot been absorbing, and m a y n ot absorb its share o f the expanding labor force. T h is d evelopm en t im poses a greater burden on the erratic Federal G overn m en t em p loym en t sector to which the H aw aiian econom y becam e geared during W o r ld W ar II. i (See chart.) 1940 H ow ever, recent increases in Class of worker Em ployed___________________________________________ 100.0 100.0 Private wage and salary workers----------- -----------------Government workers........ ................................................Self-employed workers........................................................ Unpaid family workers.................................................... - 73.8 12.1 10.4 3.7 66.2 20.5 11.5 1.8 M a j o r occupation group Em ployed_____ ________ ________ ____________________ 100.0 100.0 7.3 2.3 7.3 6.5 5.2 10.5 12.1 5.2 6.6 1.8 24.2 10.4 .6 9.8 2.6 8.3 12.4 6.5 15.5 15.0 2.0 9.8 1.0 9.0 7.5 .6 Professional, technical and kindred workers_______ Farmers aod farm managers.____ _________ ________ Managers, officials, and proprietors, except fa rm ... Clerical and kindred workers........ .................................. Sales workers......................................................................... Craftsmen, foremen, and kindred workers................. Operatives and kindred workers........... ........................ Private household workers......... ..................................... Service workers, except private household-------------Farm laborers (unpaid family workers)----------------Farm laborers, except unpaid, and farm foremen._ Laborers, except farm and mine....................... .............. Occupation not reported______ _______ _______ ______ Income of Hawaii, U . S. Department of Commerce, Office of Business Economics, 1953 (p. 9). 1950 a d yn am ic influence in H a w a ii’s eco n o m y ; (4) som e The Item Source: Bureau of the Census. 73 T h e construction in dustry, often quite seasonal in private w age and salary workers and a rise in on the m ain land because o f clim atic conditions, G o vern m en t w orkers; (2) a v ery large drop in fluctuates over longer than annual periods in agricultural e m p lo y m en t; and (3) a rise in em p lo y H a w a ii, and reflects private and Federal G o v ern m en t m e n t construction requirem ents. E m p lo y m e n t in m anu factu rin g, which accounts O c c u p a tio n a l a n d m en t, is relatively stable. in service industries and occupations. for a sm all proportion o f H a w a ii’s to ta l em p loy In d u s tr ia l D is tr ib u tio n F o r exam ple, in 1954, this in dustry group em ployed o n ly abo u t 2 ,0 0 0 T h e m a jo r occupational and industrial shifts in Isla n d em p loym en t are evident in census d ata for 1940 and 1950. (See tables 6 and 7.) m ore workers than it did in 1 9 3 9 .2 In agricul ture, em p loym en t dropped nearly 50 percent in T h ese data sh ow the follow ing relative changes: (1) A decline 2 Income of Hawaii, op. cit., see source reference to chart. T o ta l E m p lo ym en t, an d C iv ilia n P rivate a n d Fed eral G o vern m en t E m p lo ym en t, H a w a ii, 1 9 3 9 - 5 4 1 Thousands of Employees UNITED STATES DEPARTMENT OF LABOR Source:Income of Hawaii. U.S. Department of Commerce. Office of Business Economics. 1953; and supplemental estimates for 1 9 5 3 an(j 1 9 5 4 issued by the OBE in September 1955. BUREAU OF LABOR STATISTICS f All figures expressed as average number of full-time equivalent employees. Full-time equivalent employment measures man-years of full-time employment of wage and salary earners and its equivalent in work performed by part-time workers. Full-time employment is defined simply in terms of the number at hours which is customary at a particular time and place, 74 T able 7.— In d u stria l d istribu tion o f the em p lo yed fo r c e, T errito ry o f H a w a ii, 1 9 4 0 and 1 9 5 0 Federal em ploym ent as percen t o f total em ploym en t, Island o f Oahu i (range fo r 18 months) labor Percentage distribution Major industry group 1940 1950 Total employed labor force............................................. 100.0 100.0 Agriculture, forestry, and fisheries............................... M ining_______________________________________________ Construction........................................................................ .. Manufacturing____________________________ _________ Durable goods................................................. .............. Nondurable goods______________________________ Transportation, communication, and other public utilities.______ _____________________________________ Wholesale and retail trade______ ___________________ Wholesale trade__________ ______________________ Retail trade___________ ________ _________________ Finance, insurance, and real estate_______ _____ ____ Business and repair services.......................................... Personal services..................... ............................................. Private households................................................. .. Personal services except private households. _. Entertainment ahd recreation........................................ Professional and related services.................. ............. .. Public administration__________ _________ __________ Postal service............................................... ............... Federal public administration................................ Territorial and local public administration____ Industry not reported............. ........................................... 35.5 19.0 7.0 7.0 12.7 3.4 9.3 .2 10.0 1.6 8.4 5.5 14.2 1.7 12.5 1.4 1.9 10.0 6.0 4.0 .1 7.9 18.9 3.3 15.6 2.4 2.5 6.5 3.9 1.6 10.0 11.0 3.1 1.7 .9 .4 7.3 3.3 .6 .2 20.7 15.1 14.1 18.2 18.1 16.2 15.4 to22.4 to21.7 to16.8 to20.1 to19.4 to18.7 to16.6 1 The data are shown fo-r Oahu, because 98 percent of all Federal employ ment in Hawaii is on this island. For the Territory as a whole, Federal employment as a proportion of the total employed labor force has ranged from 11.3 to 12.3 percent m onthly from September 1953 through M a y 1955, according to employment estimates of the Territorial Bureau of Em ploy ment Security. Source: Bureau of Employment Security, Territory of Hawaii, Depart ment of Labor and Industrial Relations. 2.6 7.4 5.0 1.0 1948 _____________________________________ 1949 _____________________________________ 1950„_____________________________________ 1951 _____________________________________ 1952 _____________________________________ 1953 _____________________________________ 1954 _____________________________________ T hese percentages applicable to Federal em p loy m en t in H aw aii considerably exceed the U n ited States figures for total G ov ern m en t em p lo y m en t (including local, S tate, and Federal workers) as a percent of the total em ployed civilian labor force. N o t e . Because of rounding, sums of individual items do not necessarily equal 100. F rom 1948 to 1953, G overn m en t em p lo ym en t as a percent o f the total em ployed Source: Bureau of the Census. civilian la b or force in the U n ited States ranged fro m 9.5 to 1 0 .8 . this period; those displaced from jo b s in agricul ture generally m o v ed to urban areas to seek em p lo y m en t. in trade, Significantly, com bined em p loym en t finance, transportation, utilities, W h e n S tate and local governm ents are excluded, the percentages for G overn m en t em p loym en t in the U n ited States range from 3.1 to 3 .9 ; thus, th e and services increased 56 percent for the period from 1939 through 1954, which offset the displacem ent from agriculture. G overn m en t e m p lo y m e n t, total a n d F ed era l , as a percen t o f total em p lo ye d civ ilia n labor fo r c e , U n ited S ta tes a nd T er rito r y o f H a w a ii, 1 9 4 8 - 5 4 T able 8.— F ro m 1939 to 1954, the total civilian em ploy Total government employment (percent) m en t increase, for in d u stry groups where em ploy m en t increased, was nearly 5 2 ,0 0 0 . T w o in dustry Year United States 1 segm ents accounted for approxim ately 61 percent of the total em p loym en t increase. local governm ents had the increase— retail trades and autom obile services increased b y abou t 9 ,7 0 0 . G overn m en t em ploym en t has also accounted for a substantial proportion of total em p lo ym en t in H aw aii. For the years 1948 through 1954, the proportions ranged from 14.1 percent to 2 2 .4 percent, although th ey tended to decline in recent years. H aw aii3 United States 1 H aw aii3 F ederal and largest sligh tly m ore than 2 2 ,0 0 0 , and em p loym en t in Federal Federal Government employment (percent) 1948.......................... 1949.......................... 1950........ ................. 1951.-....................... 1952.......................... 1953.......................... 1954.......................... 9.5 9.9 10.0 10.4 10.8 10.7 11.0 27.0 25.6 24.0 26.7 26.6 26.0 25.6 3.1 3.2 3.2 3.7 3.9 3.7 3.6 * 1 8 .3 15.8 13.4 16.6 16.5 15.8 15.0 i Calculated from labor-force estimates, U . S. Department of Commerce* Bureau of the Census, Bull. P-57; and government employment statistics* U . S. Department of Labor, Bureau of Labor Statistics. * Calculated from data in Income of Hawaii, and supplemental data, op. cit., chart, source reference. Employment figures used are in average full-time equivalents. For an explanation of this measure, see chart, footnote 1. * These percentages are lower than those given above, which are based on monthly employment estimates for Oahu prepared b y the Bureau of E m . ployment Security, Territorial Department of Labor and Industrial Relations. 75 incidence of Federal em p loym en t in H aw aii since personnel stationed in H a w a ii. 1948 has been a t least 4 tim es higher than in the G o vern m en t in 1952 accounted for 31 percent of U n ited States (table 8 ). Since the Federal the total Territorial incom e and 3 6 .3 percent of A ccordin g to the 1950 census, o n ly 8 States its total w age and salary disbursem ents, it is clear show ed Federal civilian em p loym en t as a percent th a t the Federal G o v e rn m e n t’s expenditures are of the em ployed civilian labor force exceeding 5 percent or m o re.3 crucial in problem s of labor-force size and em p loy m en t and u n em p lo y m en t potentials. T h e m o st volatile aspect o f Federal em p loym en t in H a w a ii concerns m ilitary construction and services which depend on the n um ber o f service 8Arizona, 5.4 percent; California, 5.4 percent; Colorado, 5.1 percent; Nevada, 7.3 percent; New Mexico, 5.6 percent; Utah, 10.0 percent; Vir ginia, 5.7 percent; and Washington, 6.8 percent. “ T h a t H a w a ii should h ave been discovered at all b y m en whose only m eans o f w ater transportation w as the outrigger canoe and whose o n ly device for reckoning a course w as b y observation o f the naked eye on the sun and stars is a m y ste ry which is likely to rem ain forever sealed. driven from their n ative lands . . . b y warfare W h e th e r th ey were or b y violen t storm s or w hether th ey sough t new lands for an expanding popu lation , the fa ct rem ains th a t th ey did discover H aw aii at a fairly early tim e [about 50 0 A . D .]. To ju dge b y the m eager data from legendary sources, the earliest settlers of H a w a ii rem ained com pletely isolated for perhaps a thousand years— a t least 3 0 generations. D u rin g the 11th and 12th centuries, H a w a ii is believed to h ave com e again w ithin the range o f Polynesian travel, and as a result of several im p ortan t invasions from the south a new and aggressive people im posed their rule as well as m u ch o f their culture upon the indigenes. Several im p ortan t additions to the floral and faunal resources o f the region, including the breadfruit, were m ade during this period. In the course o f the n ex t 50 0 years, during w hich the Islan ds were again cut off from con tact, the indigenous culture w as gradu ally evolved. “ N o t u n til C a p ta in C o o k ’s v oy a g e in 1778 were the Islan ds really discovered in a n y sense w hich fu n d am en tally affected their relations to the larger world around the Pacific. F ollow in g the publication of Cook’s V oyages in 1784, the Islan ds for the first tim e secured a position on th e charts and m aps of explorers and n avigators and w ithin a few years H a w a ii began to fulfill the v ery im p o rta n t function which C a p ta in C o o k had anticipated— serving as a su pp ly and refreshm ent base for ships crossing the Pacific. . . . H a w a ii was so located as to be am on g the last o f the Pacific island groups to be discovered, b u t so strategic w as its position th at its settlem en t has been accom plished m ore rap idly than in the other oceanic islan ds.” Andrew W. Lind, An Island Community: Ecological Succession in Hawaii, Chicago, University of Chicago Press, 1938 (pp. 6-7). HAWAII T h e Federal G overn m en t replaced agriculture as the leading source of w ages and salaries paid in H aw aii. Working Conditions T h e decrease of 12.8 percentage points in the portion of the total payroll accounted for b y agriculture w as alm ost m atch ed b y the increase and Workers’ Wages o f 9 .9 points for the Federal G ov ern m en t. H ow ever, agricultural workers m ad e the largest relative gain in average annual earnings in this period. (See chart.) T h o m a s H . Ig e A v era g e hou rly earnings in H aw aiian in dustry (excluding trade, construction, and services) in creased alm ost 39 percent in the first h alf of 1 9 5 4 .2 Sim ilarly, average w eekly earnings w ent up b y 30 percent and average hours w orked per week I mproved w ages and w orking conditions in H a w a ii decreased b y 6% percent. Percent o f all wages and salaries paid 1939 1954 to d ay clearly reflect the great strides m ade in the T errito ry ’s econ om y, especially since 1941. an isolated, underdeveloped F ro m econom y payin g a prevailing wage of “ one dollar a d a y ” for 10 hou rs’ w ork, p resen t-day H a w a ii can m atch its labor standards w ith those of the continental U n ited States. W o r ld W a r I I w ith its concentrated im p a ct on H a w a ii accentuated the econom ic transform ation th a t h ad been taking place. B y the end of the war, the T erritory had becom e a highly unionized a rea; 10 years before, unions were unknow n in the Islan ds outside of lim ited areas in H o n olulu. the transition, In the basic agricultural industries were h ighly m echanized and industry generally was m odernized. W it h existing international tensions in the Pacific area, the im p act of Federal All civilian industries 1__________________ Agriculture_____________________________ Contract construction___________________ Manufacturing__________________________ Wholesale and retail trade_______________ Finance, insurance, and real estate_______ Transportation__________________________ Communication and public utilities______ Services_________________________________ Federal Government____________________ Local government_______________________ 100. 0 100. 0 26. 4. 12. 15. 2. 5. 3. 9. 9. 12. 4 1 0 8 8 0 2 4 2 2 13. 6 6. 0 11. 6 16. 9 2. 8 5. 1 3. 2 9. 5 19. 1 12. 1 i Data are not shown for mining, which had only 250 employees in 1939 and 210 in 1954. N o t e .— Because of rounding, sums of individual items do not necessarily equal 100. Source: Income in Hawaii, U . S. Department of Commerce, Office of Business Economics, 1953, table 3 (p. 19), and supplemental estimates for 1954 issued by the O B E in September 1955. expenditures rem ains su bstantial and continues T h e general upw ard m o v em en t in the Isla n d s’ to reshape the H aw aiian econom y today. Per capita personal incom e in H aw aii increased from $525 in 1939 to $ 1 ,7 0 4 in 1954. C orrespond ing figures for the U n ited States were $ 5 5 6 and $ 1 ,7 7 0 . A fter allowance for increases in prices, taxes, and population, the real per capita dis earnings and incom e varied b y specific in dustry as a result of several factors, including the m arked shift in the H aw aiian econom ic structure, as well as the extent of unionization and m echanization, and the nature of com petition am ong industries. posable incom e in H a w a ii in 1954 rose b y tw o thirds since 1939. R e la tiv e ly , these gains were S u g a r In d u s try greater than for the U n ited States in the sam e A n industryw ide jo b classification system in the period.1 T h e rise in incom e has been accom panied b y m arked shifts in the industrial structure of H a w a ii. T h ese changes are evident in the accom pan ying tabu lation w hich show s average annual earnings per fu ll-tim e civilian em ployee as a percent of all wages and salaries paid in H aw aii, in du stry category, in 1939 and 1954. 76 by m a jo r sugar industry was first established in N o v e m b e r 1946 under a contract w ith L o ca l International L on gshorem en ’s and 142 o f the W a re h o u se- * i Income figures for Hawaii were taken from a comprehensive study, In come in Hawaii, U . S. Department of Commerce, Office of Business Economics, 1953. For the years 1953 and 1954, the pel capita income for Hawaii was $1,740 and $1,704, respectively. * Earnings and Hours in Hawaiian Industry, Hawaii Employers Council, March 1954. 77 A v e ra g e A n n u a l Earnings Per Full-Tim e C iv ilia n E m p lo y e e , b y M a jo r Industry G ro u p or D ivisio n , H a w a ii, 1 9 3 9 and 1 9 5 4 $4,334 Federal Government Finance, Insurance, and Real Estate Manufacturing Wholesale and Retail Trade Agriculture, Forestry, and Fishing Source: Incom e in H a w a ii. U. S. D epartm en t of Com m erce. O ffic e of Business Economics. 1953; U N IT E D S TA TE S D E P A R T M E N T O F L A B O R BUREAU OF LABOR STATISTICS and supplem ental estim ates fo r 1954 issued by the O B E in Septem ber 1955. 78 m e n ’s U n io n . W it h few exceptions, this basic Supplem en tary benefits are standardized under w age structure elim inated w age differentials for the industryw ide agreem ent. com parable jo b s am ong plantations on the various are provided and, in addition, tim e-an d -o n e-h a lf Islands. rates are paid for w ork on these holidays. into I t also incorporated housing perquisites base w age rates for the first tim e. The Six paid holidays standard vacation provision is The 1 week after 1 h ou rly rates agreed to in 1946, and corresponding y e a r’s service and 2 weeks after 2 years w ith rates for 1954, are listed below : accum ulation of 1 week p erm itted. H ou rly base rate * Labor grade 1U6 1 _____________________________________ 2 _____________________________________ 3 _____________________________________ 4 _____________________________________ 5 _____________________________________ 6 _____________________________________ 7 _____________________________________ 8 _____________________________________ 9 _____________________________________ 10 ____________________________________ 195b 0. 705 .7 4 . 785 .8 3 .8 9 .9 6 1. 045 1. 14 1. 25 1. 38 y ear’s service and for 36 d ay s after 5 or m ore 1. 06 1. 095 1. 145 1. 20 1. 26 1. 32 1. 40 1. 495 1. 605 1. 735 1Premium base rates are paid on 3 big plantations with the highest (on Waialua) being 8.5 cents more for labor grade 1. These premium rates taper off for higher labor grades with no differential at the top level. Four planta tions on the Island of Hawaii pay 7.5 cents per hour less than the industry wide base rates, but provide a wage escalator tied to the price of raw sugar n the N ew York market. years. sugar in dustry average h ou rly earnings in the in 1954 were $ 1 .2 8 per h ou r; m o n th ly d a ta ranged from $ 1 .2 2 to $ 1 .3 5 per hour. In 1953, the corresponding range w as $ 1 .2 3 to $ 1 .3 0 . A 3 -d a y w aiting period is stipulated before sick benefits begin. B enefits are also paid for the first 5 d ays in* industrial accidents to offset the w aiting period required under w orkm en ’s com pensation law . the Territorial T h e 1955 L egis lature cut the w aiting period to 2 days. C o n trib u tory m edical and pension plans, also industryw ide, IL W U , under provide the liberal agreem ent benefits. w ith The the m edical plan calls for benefits for m edical services, surgery, and all m edicine given or prescribed b y the co m p an y doctor, and includes consu ltan ts’ or special ists’ S traigh t-tim e Sick leave is provided a t tw o-thirds p a y for 12 days after 1 services if necessary. M in im u m benefits under the pension plan are $2 a m o n th for each year of service w ith the co m p an y after the first year, w ith a m a x im u m p a y m en t o f $75 per m o n th exclusive of social security benefits. W it h the rapid rise in labor costs, the sugar U n like agricultural em ploym en t on the m a m - in dustry has intensified its m echanization program land, the sugar in dustry in H aw aii has been d e- in order to m ain tain its com petitive position. seasonalized and em p loym en t, b y and large, is addition, m arginal land areas h ave been abandoned on a year-round basis. in fa v or of m ore intensive cultivation of the re Census data show th a t of In all those w ho w orked in the sugar in dustry in the m aining arable areas. sam ple year of 1949, abou t 83 percent worked from fu ll-tim e workers on sugar plantation s decreased 50 to 52 weeks as com pared w ith 73 percent in from 4 4 ,4 3 0 in 1939 to 2 1 ,4 1 5 in 1952, the physical wholesale volu m e of production has rem ained su bstan tially and retail trades; w orked less th an 26 weeks. on ly 3.6 percent T h e m arked increase in basic w age rates (as show n in the tab u lation ), therefore, is reflected in annual earnings. A verage unchanged. A lth o u g h the n um ber of T h u s, total wages and salaries paid in this period to workers in the in d u stry m ore than doubled— from $3 0 m illion to over $61 m illion— annual earnings per fu ll-tim e em ployee o f sugar and substantial im p rovem en t in w orking condi com panies (b oth field and m ill) rose from $ 1 ,6 5 7 tions were m ade. in 1946 to $ 2 ,8 6 8 in 1952. T h e sugar in dustry has been alm o st com p letely T w e lv e plantation s out of a to ta l o f 26 are unionized b y the I L W U in the la st decade. U n io n presently on a year-round, 40-h ou r w orkweek, w ith ization, how ever, has h ad a m ore pervasive effect overtim e after 8 hours per d a y and 4 0 hours per on b oth the sugar and pineapple p lantation s than w eek. The others, w ith 2 exceptions, h av e a th at indicated b y the term s o f the collective 4 0-h o u r w orkw eek for 38 w eek s; 1 plantation p ays bargaining overtim e after 4 0 hours for 32 weeks and the other pendu lum has sw ung a w a y fro m co m p an y pater for 26 weeks. P rem ium p a y of 5 cents per hour nalism th a t characterized these industries for the is provided on all these plantations for w ork be p ast 50 years and is beginning to sw ing fro m the contracts in these industries. The tw een 7 p. m . and 12 m idn ight, and 10 cents per m iddle ground tow ard one of union paternalism . hour for w ork betw een 12 m idn ight and 5 a. m . W e lfa re benefits, provided in these contracts, are 79 adm inistered largely by the union. E laborate athletic program s previou sly conducted b y com panies are n ow under union direction. 1955 IL W U Territorial convention, the In the fu nds the regular 4 0-h o u r w orkw eek is not during 14 weeks o f the p eak season. applied D u rin g this period, overtim e is paid after 44 hours per w eek. for P rem ium p a y o f 5 and 10 cents per hour is provided setting up union centers for b oth business and for second and third shifts, respectively, during social activities on the busy season. all the m a jo r islands were a p p ro v ed ; ventures into retail credit and discount bu yin g for m em bers are also under consideration. P in e a p p le B u ild in g a n d C o n s tr u c tio n T h e construction in dustry, w ith approxim ately In d u s try 9 ,0 0 0 T h e 8 pineapple com panies in H aw aii, w ith 11 plantation s and 9 canneries, em ployed abou t 6 ,0 0 0 workers and over 800 em ploying units, is alm ost com p letely nonunionized in H aw aii. The 213 m em bers of the General C on tractors A ssocia regular em ployees in 1954 and 2 2 ,0 0 0 during the tion who em ploy the bulk of these workers set the peak o f the harvest. pattern of basic w age rates. C on verted into its fu ll-tim e equivalent, this em p loym en t am oun ted to over 11,000 workers. T h e n um ber of regular em ployees D a v is-B a c o n A ct as applied to thousands U n d er an industryw ide contract w ith I L W U L ocal 142, hou rly base rates in this industry start a t $ 1 .2 0 per hour for the low est labor grade b oth in the p lantation s and in the canneries and range A 10-cen t hourly differential (lower) is 1). F or job s or trades th at cu t across in dustry lines, how ever, the rates spread substantially. T able 1.— H o u r ly jo b rates established u n d er D a v is -B a c o n A c t and b y G eneral Contractors A sso c ia tio n a nd m ed ia n rates f o r all in d u stries, T errito ry o f H a w a ii provided, how ever, for w om en workers in each labor grade. O n the plantation s, b oth the regular and seasonal w ork forces are a bou t 95 percent m en. O perations at the canneries, how ever, are m ore seasonal, and thus the large p art-tim e work force is p red o m in a n tly w om en. T h e regular work force, abou t 2 ,0 0 0 , is com posed prim arily of m en in the semiskilled h ourly and earnings skilled for of workers on Federal projects in the Islan ds (table has declined slightly since 1946. up to $ 2 .0 5 . T hese rates generally coincide w ith the m in im u m s required under the groups. regularly T h u s, average em ployed m en Selected job classifications Job rates Carpenters__________________________________ Electricians________ _________________________ Machinists_________ ______ __________________ Painters, brush_______ _____________________ Plumbers_________ ______ ___________________ Sheet-metal workers_______________ _____ ___ Truckdrivers (5-10 tons) .............................. Welders_____________________________________ Highlift operators__________________________ Labor, common_______ _____________________ All industries * (median rates) $1.76 1.82 1.82 1.71 1.71 1.925 1.45 1.71 1.38 1.15 $2.10 2.45 2.18 1.85 2.45 2.40 1.73 2.18 1.68 1.35 1 Pay Rates in Hawaii, Hawaii Employers Council, January 1955. workers in the canneries are m u ch higher than on the plantations w hich em p loy m ain ly unskilled L o n g s h o re In d u s tr y labor. D u rin g the last 10 years, the w age differentials H o u rly w age rates in the longshoring industry, th a t h ave existed am ong pineapple plantations on one of the earliest to be organized in H a w a ii, h ave the Islan ds h ave been virtu ally elim inated and the advanced m ore differentials betw een earnings o f cannery workers, straight-tim e who are m o stly city residents, and the rural p la n ta increased to $ 1 .3 0 b y the end o f 1946 and reached tion workers, h ave been narrowed. In 1954, aver than in other industries. h ou rly $ 2 .1 6 in June 1955. rate of 70 cents in The 1941 In 1941, the longshore hourly on the pineapple rate obtained b y I L W U locals on the m a in lan d ’s plantations com pared w ith the $ 1 .2 8 average on W e s t C o a st exceeded th at in H aw aii b y 30 cents age h ourly earnings of $ 1 .4 8 an hour. the sugar plantations. Supplem entary w age practices in the pineapple in dustry are su bstan tially sim ilar to those previ ously described for the sugar in dustry. T h e fa ct T h e differential was reduced to 22 cents b y the end o f 1946 and to 11 cents in 1955. The differential has narrowed from abou t 4 0 percent in 1941 to 5 percent in 1955. T h u s, the I L W U ’s th at the I L W U L o ca l 142 bargains for em ployees lon g-sou gh t-after in both industries tends to standardize their w ork C o a st longshore in dustry appears to h ave been conditions. B ecau se o f the h ighly seasonal w ork requirem ents in the pineapple industry, how ever, a lm ost achieved. w age equality w ith the W est T h e skill differentials for lon g shorem en, w inch drivers, h atch tenders, leaderm en, 80 gan g forem an, and other jobs likewise closely T able 2.— approxim ate W e s t C o a st longshore standards. S a la ries o f selected clerical jo b s in the T errito ry o f H a w a ii , 1 9 5 4 S upplem en tary w age practices in the H aw aiian entials, call-in pay, overtim e p ay m en ts, been keyed to practices prevailing in the ports of S an Francisco, L o s A ngeles, and Seattle. P a t terned after longshore in dustry practices through the U n ited S tates, health, w elfare, and pension plans h ave also been stron gly em phasized in H a w a ii in recent years. A M iddle 50 percent of range shift differentials, and vacation s w ith p a y also h ave out M edian monthly salary Job classification longshore in dustry, including p en alty cargo differ com prehensive Senior account clerk________________________ Account clerk_______________________________ Order clerk............................................. ................ Stock clerk_________ ___________ _____________ Cashier_____________________________________ Bookkeeping-machine operator____________ Switchboard operator____________________ __ Secretary___________ __________ _______ ______ S tenographer.......... ............................................... Senior typist......... ................... ............................. Senior clerk______ _________________ ______ ___ $370 250 237 258 $315-$438 210- 305 188- 284 215- 294 175- 265 215- 298 234- 265 285- 365 240- 300 203- 278 272- 375 222 254 265 322 268 240 325 Source: Pay Rates in Hawaii, Hawaii Employers Council, January 1955. m edical plan w as established in 1952 on a contrib u tory basis and su bsequen tly underw ritten b y the Pension N e w Y o r k L ife Insurance C o . T erritory's officeworkers. A n on contribu tory and m edical plans cover m o st of the pension plan w as also n egotiated in the sam e year. T h e plan provides, am on g other things, a m in im u m m o n th ly pension of $7 5 (exclusive of social security benefits) a t 65 after 25 years o f credited service. S u m m a ry W a g e s and w orking conditions in H a w a ii to d a y com pare fa v orab ly w ith those in the U n ited States A lth o u g h sugar and pineapple are the p rim ary export industries in H a w a ii, F ederal G o v ern m en t C le r ic a l W o r k e r s em p lo ym en t is becom ing increasingly im p ortan t. C om pen sation for clerical workers varies greatly Im p ro ved labor standards h av e led generally to from in d u stry to in d u stry and even within firms increased in the sam e in dustry. m echanization T h e dispersion around the labor costs in and basic h av e spurred industries. rapid A d v a n cin g is technology has caused a sh ift o f workers to dis considerable for each jo b classification listed in tributive and service industries w as well as to m edian table 2. m o n th ly salary for these T h e great b u lk of these job s are located within the c ity lim its of H o n o lu lu ; am ong workers w h ite-collar workers is unionization v irtu ally n on 5 -d a y T h e continued high cushioned the im p act of the e m p lo ym en t transfers. W o rkers retained in the h ighly m echanized sugar existent. A G overn m en t em p loym en t. level of Federal expenditures in the Islan ds has w orkw eek for prevalen t practice in H aw aii. office workers is the O n ly 12 ou t of 118 and pineapple industries h av e shared in the in creased p rodu ctivity and m ad e su bstan tially firm s in a recent su rvey 3 had a regular workweek greater gains proportionately th an other workers for officeworkers exceeding 4 0 hours. in recent years. generally paid after 4 0 hours of w ork. O vertim e is P aid holi W ith closer econom ic ties to the continental U n ited States, w ages and d a y provisions appear to be m ore liberal for office workers in H a w a ii th an on the m ainland, w ith 10, terned after prevailing practices on the m ain lan d . * 11, and 12 h olidays w ith p a y frequently provided. H a w a ii will increasingly w orking conditions in H is n am e w as Jam es D . D o le , son o f a well kn ow n U n itarian m inister near B o sto n . H e had the vision to see the possi bilities in canning pineapple and organized a m od est little com p an y capi talized at $ 2 0 ,0 0 0 , w ith 12 acres o f pineapple plantation . T h e first y ear's o u tp u t w as 1,893 c a s e s ." Albert W. Palmer, The Human Side of Hawaii— Race Problems in the Mid-Pacific, Boston and Chicago, Pilgrim Press, 1924 (pp. 100-101). p a t * Pay Rates in Hawaii, Hawaii Employers Council, January 1955. “ A little over 20 years ago, in 1900, a y o u n g H a rv ard gradu ate interested in agriculture cam e to H a w a ii. be HAWAII trialized and its workers were unionized. A ll o f these developm en ts provided the im petu s to the enactm en t o f a b o d y o f law s beneficial to labor Labor Legislation and Enforcement R ob e r t Sr o a t and R u t h b y recent Territorial Legislatures. T h ese law s are surveyed briefly in this article. W a g e W. L oomis a n d H o u r L a w T h e w age-hour law sets a m a xim u m 48-h ou r week for purposes o f overtim e com pensation as well as a 75-cen t hou rly m in im u m w age for the island o f O ah u and a 65-cen t m in im u m for the other islands in the H aw aiian chain. W h e n hours over 4 8 are worked in 1 w eek, com pensation of one H aw aii ’s labor laws generally h ave been p a t and one-half tim es the regular rate is required. terned after labor legislation in the continental A lso , all split shifts m u st fall within 14 consecutive U n ited S tates. hours, except in an extraordinary em ergency. F o r exam ple, the H a w a ii w age a n d hour and child labor law s generally parallel Specific exem ptions exclude from the la w ’s the F air L a b o r Standards A c t ; the Federal D a v is - coverage em ployees h av in g a guaranteed salary B a co n A c t and 8-h o u r law provided the pattern o f $ 350 or m ore per m o n th ; em ployers in agri fo r a com bined “ little D a v is-B a c o n A c t .” The culture w ith less than 2 0 workers in an y 1 w ork H aw aiian laws were enacted o n ly a few years w e e k ;1 or dom estic em ployees in later than their Federal counterparts despite the p rivate h om e. The law viduals em ployed b y m a n y factors w hich retarded their d evelopm en t. Situ ated over 2 ,0 0 0 m iles from the m ain land, fa m ily ; those w ho and about a further excludes in di certain m em bers o f their are in b on a fide executive, workers in the Islan ds were n o t affected signifi adm inistrative, c a n tly b y the n otable grow th o f union organiza p a c ity ; outside salesm en and outside collectors; supervisory, or professional ca tion in the U n ited States during the early 1 9 0 0 ’s. and those em p loyed in the fishing in d u stry except F o r the m o st part, the Islan d labor force w as in the canning o f fish. engaged in agriculture and related activities. already su bject to the F air L a b o r S tandards A c t It I t also exem pts em ployees w as com posed o f a heterogeneous m ixture o f races, and such groups o f workers as seam en, principally O riental, w ho h ad com e from coun drivers, g olf caddies, and stu den ts em ployed b y taxicab tries in w hich w orking conditions were p rim itive, a nonprofit school. hours were long, and wages were low . m en and w om en , m inors or adu lts, are benefited B y con trast, working conditions in H a w a ii were co m p aratively advan ced , thus lessening the pressures W it h the grow th o f com m un ication and trans facilities, equally under this law . T h e original w age and hour law , which becam e effective A p ril 1, 1942, provided a 5-cen t hou rly fo r social legislation. p ortation A ll other em ployees, b oth how ever, H a w a ii gradu ally differential betw een the m in im u m rates applicable to O ahu and to the other H aw aiian Islan ds— 25 was transform ed from an isolated insular co m cents m u n ity to an integral p art o f the larger and m ore uniform m in im u m rate o f 4 0 cents w as established com plex econ om y o f the U n ited S tates. A d v e rtis ing H a w a ii as a vacation resort b rou ght n ot on ly and 20 cents, for all the Islan ds. respectively. In 1945, a L egislative action in 1953, how ever, reestablished an h ou rly differential— 65 A d d i cents for O ahu and 55 cents for the other Islan ds. tion ally, a new labor force em erged; it w as com T h is differential w as m aintained w hen the 1955 prised o f children o f the im m igran t w orkers, who Legislature increased the rates in these areas to were 75 cents and 65 cents, respectively. the tourist trade b u t m ain land A m erican ized A m erican schools, and citizens. the new unions. E d u ca ted workers conscious o f rights and equ ality. in V ariou s labor law s enacted b y C ongress were m ad e applicable to H aw aii. F in a lly , C h anges in becam e agriculture becam e indus 1 Employers in industrialized agriculture (those employing 20 or more workers) were excluded until July 1, 1945, when they were made subject to the statute. A t that time an estimated 28,000 island agricultural workers were covered under the law. 81 82 the m in im u m L eg islatu re; rates can o n ly be m ad e b y the statu te does not provide the T h e D ep a rtm en t m a y refuse certification, or for m a y revoke a previously issued certificate, if the increasing the m in im u m rates through adm inis w ork is deem ed hazardous trative w age orders or w age board procedures. contributes to delinquency, or if the certificate T h e law is adm inistered b y the W a g e and H o u r was im properly issued to life and h ealth, originally. No m inor D ivision w ithin the B u reau of L a b o r L a w E n fo rce under 16 m a y w ork w ith pow er-driven m achinery, m en t o f the D e p a rtm e n t o f L a b o r and In du strial after 6 o ’clock in the evening, or in a n y occupation R elation s. In addition to the m ain staff o f field deem ed hazardous. No specific hazardous inspectors located in the central office on O ah u , 1 occupation orders h ave been prom ulgated, and inspector is located in each o f the branch offices this aspect of the law is left to the discretion o f located on the 3 m a jo r islands— H a w a ii, M a u i, the issuing officer. and K a u a i. F ro m the M aui office, itinerant services are provided to the islands of M o lo k a i T hree typ es of em p lo ym en t are specifically exem pted from the restricting provisions o f the la w : w ork in dom estic service in a private h o m e ; and L an a i. E n forcem en t features of this law are of 3 t y p e s : w ork in connection w ith the sale and distribution (1) crim inal penalties for willful violations (m a x of new spapers; and w ork done solely for a parent im u m or or guardian b y a m inor, if it is perform ed when b o t h ) ; (2) in ju nction proceedings brou ght b y the the m inor is n o t legally required to a ttend school. $ 500 fine or 90 d a y s’ im prisonm ent, D irector of L a b o r and Industrial R ela tio n s; and (3) suits for the recovery of unpaid wages and overtim e pay which m ay be brought by the interested em ployees or b y the D irector in their b eh a lf; in the latter instances, atto rn ey s’ fees or Any w illful violation of dem eanor, punishable b y the law is a a fine n ot to m is exceed $ 1 ,0 0 0 or b y im prisonm ent for n ot m ore than 6 m on th s, or b oth . The law perm its children under 14 to be court costs are supplied to the em ployees w ithou t em ployed in the entertainm ent field under regula charge. tions prescribed b y the C om m ission of L a b o r and In the 13 years of enforcem ent of this law , from A p ril 1, 1942, to A p ril 1, 1955, $ 5 3 4 ,9 0 0 in back wages were recovered b y the W a g e and H o u r D ivision for distribution am on g 6,471 m ale and 6 ,6 3 4 fem ale em ployees. M in im u m -w a g e v iola tions accounted for $ 2 4 5 ,0 0 0 and overtim e v io la tions for $ 2 8 9 ,9 0 0 of the am oun t recovered. D u rin g the early years of enforcem ent som e typ e o f violation w as found in m ore than 40 percent of the inspected ployees. establishm ents w ith H o w ev er, violations covered h ave em declined steadily since; on ly 10 percent were in violation during the last fiscal year. Industrial R elation s.2 T h u s, the C om m ission has adopted a theatrical em p loym en t regulation which governs the em ploym en t of all m inors in gainful occupations m usicians, such entertainers, theatrical perform ers. as or dancers, m o tio n singers, picture or T h is regulation sets the hours for em ploym en t of m inors under 16 in these activities, but forbids such em ploym en t on premises where liquor is served or sold. A d m in istra tiv e policies prohibit the em p lo ym en t o f m inors under 16 in bow lin g alleys, and b o y s under 16 and girls under 18 in p en n y arcades and sim ilar places of am usem en t. T h e D ep a rtm en t has issued a to ta l o f 1 5 6 ,9 0 3 child labor certificates from January 1, 1940, the C h ild L a b o r L a w effective date of the law , to June 30 , 1954. T h e child labor law bars w ork for m inors under age 16 if th e y are legally required to attend school, and under 14 w hether or n ot school is in session, w ith a few exceptions. o f m inors under I t requires all em ployers 18 years of age to secure an em p loym en t certificate issued b y the D ep a rtm en t the fiscal year issued. fiscal 1 9 3 9 -4 0 , 3 ,951 In certificates were T h e n um ber rose to a peak o f 2 0 ,9 2 9 in 1 9 4 5 -4 6 under the im p a ct of the w ar m anpow er shortage in the T erritory, b u t declined to 5 ,7 4 6 in fiscal 1 9 5 3 -5 4 . I n the last 5 fiscal years, certificates h av e averaged 6 ,2 7 0 a n n u ally. of L a b o r and In du strial R elation s, to retain the certificate during such em ploym en t, and return it upon term ination of em ploym en t. to 2 A 5-man group within the Department of Labor and Industrial Rela tions. It sets major policies, formulates rules and regulations, and appoints the Director of the Department. 83 T h e D e p a rtm e n t has been designated b y the m en t agencies is the restriction of m a x im u m fees. U . S. D ep a rtm en t of L a b o r as issuing au th ority W h e n the law w en t into effect on January 1, 1940, for child-labor certificates for all industries in the it lim ited the m a x im u m fee to 10 percent of the T erritory covered under the F air L a b o r Standards first m o n th ’s w ages. A c t. to the law , effective M a y 2 0 , 1955, specifies th at if M o s t o f the em p loyed m inors are in the canning in dustry, Federal law . which is covered under the N o violations o f this act h ave been reported in the T erritory. the H ow ever, first m o n th ’s wages m a xim u m fee p erm itted an am endm en t are $ 1 0 0 is 10 or less, the p ercent; if the Prim arily, this record m o n th ly wages are $1 0 0 .0 1 to $1 5 0 , the m a x im u m has been the result of good v olu n tary com pliance is 15 percent; and if th ey exceed $1 5 0 , the m a x i b u t in the early period follow ing the a c t’s passage, m u m is 20 percent. rigid enforcem ent w as an im p ortan t elem ent. A t present, five private com m ercial em p lo y m en t agencies are in operation, usually W a g e C la im as an adju n ct to another business, since the hitherto low L a w m a xim u m T h e w age claim statu te, effective J an u ary 1, fee and the free placem ent services available a t the Territorial em p loym en t agency 1940, authorized the D irector of the D e p a rtm e n t of dictated L abor and Industrial [Relations to accept w age agencies. claim s b y em ployees in the am ou n t of $200 or less fees will h ave is n o t know n, but it is believed th a t and to effect their settlem en t. A series of sta tu tory am endm en ts has raised this lim itation to claim s of m arginal operation of these private W h a t effect the new scale of m a x im u m the m a jo rity o f the jo b placem ents will be in the $15 0 or m ore m o n th ly w age category. $ 5 0 0 or less, as of J uly 1, 1955. E n fo rcem en t is accom plished largely through E m ig r a n t A g e n t A c t conference betw een the parties concerned, w ith a D e p a rtm e n t representative acting I f necessary, use is m ade of the legal staff of the D e p a rtm e n t and the courts. The D e p a rtm e n t has also invoked the m ech an ic’s lien law in per tinent cases. A new la w ,3 n o t yet tested, is expected to p reven t em ployers who are financially irresponsible or dishonest from being chronic v io lators of the w age claim law . I t calls for the securing of ju d gm en t on unpaid the enjoinder of the em ployer from further busi F ro m the inception of the law on January 1, 1940, to Ju ly 1, 1954, the D e p a rtm e n t has ac cepted 3 ,6 2 4 claim s am oun tin g to abou t $ 2 8 7 ,4 0 0 secured settlem en t in the am ou n t of $ 2 2 8 ,3 0 0 , or 7 9 .4 percent. F rom 1941 to 1954, the num ber am ounting to and In fiscal 1 9 4 0 -4 1 , 133 claims $ 4 ,3 7 6 were accepted, com pared w ith 372 claim s totaling $ 3 4 ,3 3 4 in fiscal 1 9 5 3 -5 4 . E m p lo y m e n t A g e n c y L a w and those T h is incident centered attention on the need to p rotect local workers from similar exploitation and, in 1951, the E m ig ra n t A g e n t A c t w as enacted. T h e sta tu te defines an em igrant agent as a n y person ‘ ‘engaged in soliciting, inducing, procuring, or hiring workers to go beyond the lim its of the e m p lo y m en t.” E a c h agent is required to obtain a license w hich is issued only after he complies w ith detailed regulations intended to insure th at each recruited worker is inform ed of the exact term s and conditions of the em p loym en t offered him . To effectuate each D ep a rtm en t o f L a b o r and Industrial R elation s a bon d of $ 5 ,0 0 0 which stipulates th at the agent will com p ly fu lly w ith the a c t’s provisions and regulations. T h e bonding requirem ent is w aived the agen t is recruiting workers only for em p loym en t in the perform ance of a contract w ith the U n ited feature of the act regulating com m ercial em ploy* these regulations, agent is required to file w ith the D irector of the S tates or its S tates or Territories. A side from licensing provisions, the principal O n som e of th a t wages differed greatly from prom ised b y the agent. when C o m m e r c ia l the workers fou nd w orking conditions to b oth am ou n t of claim s accepted b y the D ep a rtm en t increased steadily. the farm s, T erritory, for the purpose of seeking or accepting ness a ctiv ity until the ju d gm en t is satisfied. has the lettu ce farm s in Salinas, C a lif. claim s and, if p ay m en t is n o t m ad e w ithin the follow ing 30 days, and In 1950, an agent recruited workers to w ork on as m ediator. * Act 26, effective July 1, 1955. 84 M in o rs are further protected b y a provision in the N a tio n . law th a t requires guaranteed return transporta thirds o f the em p loyee’s average w eekly w ages tion to the point of hire. W e e k ly com pensation is set at tw o - up to a m a x im u m of $ 5 0 , w ith total com pensation N in e licenses are presently outstan ding, and com pliance, b y and large, has been good. The lim ited to $ 2 0 ,0 0 0 . M e d ic a l lim ited as to tim e and am oun t. treatm en t is un A 2 -d a y w aitin g D ep a rtm en t has been called upon infrequently to period is required before com pensation is paid intercede against the agents. for tem p o rary -to ta l disability, b u t if the d isability P u b lic paid from the first d ay . continues for m ore than 7 days, com pensation is W o rk s A c t Should p erm an en t-to ta l disability continue after a worker has received A c t 133, a “ little D a v is-B a c o n A c t ,” becam e effective on A u g u st 14, 1955. the full $ 2 0 ,0 0 0 , he receives h alf o f the w eek ly L ike its Federal com pensation from a special com pensation fu nd counterpart, it sets prevailing rates, to be deter m aintained w ith p aym en ts o f $ 2 ,0 0 0 b y the em m ined ployer for each death case in which there are no by the D irector o f the D e p a rtm e n t of L a b o r and In du strial R elation s, for laborers and dependents. m echanics at the jo b site on all public construc are m ade for second in ju ry p ay m en ts, atten d a n ts’ O th er expenditures from this fund tion contracts to w hich the T erritory of H aw aii, allowances for to ta lly disabled workers, purchase the C ity and C o u n ty o f H on olu lu , or a n y other o f accident-prevention equipm ent and educational co u n ty is a contracting agency. m aterial for the teaching of safety, and rehabili I t also provides overtim e com pensation at one and one-half tim es tation o f injured workers to the extent o f $ 1 ,0 0 0 the em p loyee’s basic hourly rate after 8 horns for a n y one person. daily or after 4 0 hours w eekly. Interpretation s of the act b y the Suprem e C o u rt E n forcem en t o f the act is the jo in t responsi b ility of the govern m ental and the D ep a rtm en t. p ay m en t of wages contracting agency E ith er agency m a y require or overtim e com pensation fou nd due to laborers or m echanics on contracts to which the law is applicable. To date, the have ranged w idely over alm ost all its provisions.6 T h e la test decision of the Suprem e C o u rt on the su bject o f w orkm en ’s com pensation deals w ith causal connection betw een conditions under which w ork is perform ed and a cerebral hem orrhage.6 U n til 1940, adm inistration o f w orkm en ’s co m D e p a rtm e n t has had no enforcem ent experience pensation under A cciden t B oard s appointed b y the G overn or for fu lly the statu te. determ ined M o reo v er, it has not yet the scope o f the problem its enforcem ent will encom pass. w as each cou n ty. the responsibility of Industrial In th at year, the B ureau o f W o r k m e n ’s C om pensation w as established w ithin the n ew ly created D e p a rtm e n t o f L ab o r and In d u s W o r k m e n ’ s C o m p e n s a tio n A c t trial R elation s w ith responsibility for the adm inis tration E n a cte d in 1915, this law provides com pulsory coverage for all em ployees engaged in gainful of the law . The In du strial A ccid en t B oards were given the sole function o f review ing awards on appeal.* business or agriculture, regardless of the nature of their w ork. C om pen sation p ay m en t for indus trial injuries is secured b y policies obtained from p rivate insurance carriers for 8,6 9 3 su bject em p lo y ers; an additional 80 em ployers su bject to the la w are authorized as self-insurers. G overn m en t workers are covered on the sam e basis as private em ployees. held by Since its the H a w a ii constitution ality w as u p Suprem e C ou rt 2% years after its en a ctm en t,4 the law has been su bject to num erous am endm en ts, b u t its basic provisions h av e rem ained unchanged. As a result o f am endm en ts effective J u ly 1, 1955, benefits are am ong the m o st liberal in the 4A nderson v. Hawaiian Dredging Co., 24 H aw . 97. * Accidents “ arising out of” employment: H onda v. H iga, 33 H aw . 576;. Asaeda v. Haraguchi, 37 Haw. 556. Contracting out: In re Gonzales, 31 H aw . 672. Damages: Reinhardt v. County o f M a u i, 23 H aw . 524. Death benefits: M orita v. H awaiian Fertilizer Co., 27 H aw . 431. Dependents: In re P ioneer M ill Co., 31 H aw . 814; Zarate v. A lle n & Robinson, 32 Haw. 118; In re L ee Y it K y a u Pang, 32 H aw . 699. Furnishing of medical care as evidence of notice to employer: A b d u l v. Am erican Factors, 32 Haw. 503. Independent contractor: Tom ondong v. Ikezaki, 32 H aw . 373. Wages: In re M artin , 33 H aw . 412; Forrest v. Theo. H . Davies & C o., 37 H aw . 517. o Recognizing that some jurisdictions follow a rule that unusual strain or exertion must be established in such cases, the Hawaii court, although fail ing to find a causal connection in the matter before it, adopted the view that to constitute an “ accident” within the meaning of the act, a claimant need only establish that either the cause of the injury was accidental in character or that the effect suffered by him was the unforeseen result of performance of his routine duties. HAWAII Organic A c t o f 1900 which established the T erri torial form o f govern m ent, contract labor w as prohibited and em ployers were no longer able to enforce such contracts. Labor Relations: Pattern and Outlook A s a result, m a n y Jap a nese laborers in H aw aii m o v ed to the W e s t C o a st of the U n ited States. A p p roxim ately 6 ,0 0 0 relocated in 1904 and 1 0,000 in 1905 and, b y 1907, abou t 4 0 ,0 0 0 had left H aw aii. Im m igration of Japanese to the U n ited States and to H aw aii w as H S. R a r o ld oberts curtailed, how ever, follow ing negotiation o f the “ G en tlem en ’s A g reem en t” and enactm ent of the Im m igration A c t of 1907. A lth o u g h the reports by the U n ited S tates Com m issioner of L a b o r in the early 1 9 0 0 ’s show T he early history of labor organization in the organization T erritory of H aw aii is similar to sm iths, th at of an y of boilerm akers, carpenters, and plum bers, bricklayers in black H aw aii, com m u n ity where the im ported foreign w orker union m em bership was relatively sm all and largely sought the haven of a new coun try to im prove ineffective. the conditions under w hich he and his fa m ily m em bership to “ w h ite” workers, i. e., Caucasians, lived. and excluded the local “ O rien tal,” i. e., Chinese In H aw aii, the im ported workers, who were recruited under the prevailing contract la b or T h ese early unions restricted their and Japanese. Som e early organizational progress system , were predom in antly of Oriental origin. was m ade 1903 The to “ Federation of A llied T rad es” w hich attem p ted to H aw aii to w ork on the sugar plantation s and help protect jo b security against Oriental com petition. build Japanese, In 1905, the “ Japanese R eform A sso cia tio n ” w as A lth o u g h the definitive book on established w ith the aim of p reven tin g discrim ina three the m ajor racial co m m u n ity and Filipino. groups were th a t Chinese, cam e the historical d evelopm en t of the labor m o v em en t in w ith the form ation of the tion against the Japanese im m igran ts. in H aw aii has y e t to b e w ritten, com prehensive T h e first m a jo r efforts directed to elim inating exam inations of the developm en t of labor organi som e of the w age inequities claim ed b y the w orkers zation are available. 1 were m ade in 1908. In th at year, the “ H igh er W a g e A sso cia tio n ” w as form ed. D e v e lo p m e n t o f th e L a b o r M o v e m e n t L ater, it called a strike (under the slogan of “ equal p a y for equal w ork” ) to obtain higher w ages to offset rising W it h the first reported com m ercial export o f sugar from H a w a ii in 1837 and the first strike at prices and elim inate w age differentials betw een Caucasian and O riental workers. K o lo a on the Islan d of K a u a i in 1841 for a 2 5 - W o rld W a r I prosperity and the high bonuses cen t-p er-d ay wage, the im pact of labor upon the paid to workers to offset the inflated price of sugar T errito ry ’s econom y was established. kept labor dem ands to a m in im u m . T h e passage W ith the of the M a ste r and Servants A c t of 1850 instituted end of the war, how ever, labor sought to reduce the system of contract labor. T h e act perm itted hours of w ork, increase basic wages, obtain over the sugar planters to im port Oriental labor, thus tim e p ay , and incorporate the w artim e bonuses assuring them a cheap, continuous labor supply. A t abou t the sam e tim e, an em ployers’ organiza tion, the R o y a l H aw aiian A gricultural Society, was form ed. I t was reorganized abou t 1895, as the H aw aii Sugar P lan ters’ Association, which was concerned prim arily w ith the varied needs of the industry, and on ly incidentally w ith the of H aw aii b y the problem s of labor supply. Follow ing the annexation U n ited States in 1898 and the adoption of the 1 Edward Johannessen, The Labor M ovem ent in Hawaii, M . S. thesis, Stanford University, 1950; Richard A . Liebes, A Study of the Efforts of Labor to Obtain Security Through Organization, M . A . thesis, University of Hawaii, 1938; C. J. Henderson, Labor: A n Undercurrent of Hawaiian Social History (in Proceedings of the Sociology Club, University of Hawaii, Vol. 13, 1951); M ark Perlman and John B . Ferguson, Labor, Trade Union ism, and the Competitive Menace in Hawaii, University of Hawaii, Indus trial Relations Center, 1952; James H . Shoemaker, Labor in the Territory of Hawaii, 1939, and The Economy of Hawaii in 1947, (U. S. Department of Labor, Bureau of Labor Statistics Bulls. 687, 1940 and 926, 1948); and Arnold L. W ills, History of Labor Relations in Hawaii (in Labor-Manage ment Relations in Hawaii, University of Hawaii, Industrial Relations Center, 1955, bibliography, pp. 61-62). 85 86 into the basic w age structure. T w o organizations T h e establishm ent of m ilitary controls follow ing were form ed in 1 9 1 9 -2 0 — the Filipino L a b o r e d the outbreak of W o r ld A ssociation , under P ablo M a n la p it, and the J apa G overn m en t restrictions on the m o b ility o f the nese F ederation o f L ab o r. W a r I I led to Federal T h e Filipino group labor force and to w age controls; both actions struck first, on January 19, 1920, b u t returned to helped to create resentm ent am ong the workers. w ork b y F eb ru ary 10 after eviction from com p an y A fte r the controls were lifted in 1944, union organ houses. by T h e strike called on F ebru ary 8, 1920, the Japanese F ederation and in volvin g a p proxim ately 7 ,0 0 0 workers, ended unsuccessfully izing efforts overnight the were h ighly labor successful. co m m u n ity A lm o st found itself organized b y the I L W U .2 on July 1 because o f the failure of the 2 labor In 1945 alone, 75 elections in volvin g 1 4 ,0 0 0 organizations to w ork together, the flu epidem ic, workers were held in H aw aii. the eviction from co m p an y houses, and the effec of these v otes were for representation, and o n ly tive opposition o f the em ployers. 752 were against. By E leven thousand 1946, the IL W U felt I n 1924, M a n la p itJs organization lost a strike strong enough to call a strike in the sugar in dustry. for the 8-h ou r d ay , a $ 2 -p e r-d a y w age, and the T h e w ork stoppage began Septem ber 1, lasted for incorporation o f w artim e bonuses into base rates. 79 R easons for the failure were apparent in the exist workers. ing econom ic and labor environm ent. of its dem ands, it obtained a substantial w age T h e 1 9 2 0 ’s days, and in volved on the m ainland were characterized b y the spread settlem ent— prim arily o f the open shop and welfare unionism . worker S im ilarly, under H a w a ii’s plantation system , housing approxim ately 2 1 ,0 0 0 A lth o u g h the union did n ot achieve all perquisites through into the conversion basic w age. of The I L W U w hich had considered the perquisite system facilities, m edical services, recreational needs, and to be one of the m a jo r factors tyin g the worker sim ilar benefits were provided b y the em ployers, to the plantation, hailed the strike as a v icto ry thus perm itting co m m u n ity unions fou gh t th a t it th em control. w as this to As exercise on “ paternalism ” inim ical to substantial the m ainland, the on the the basis independence of I t claim ed th at strike, and th at only 100 were opposed. T h e u nion ’s strength was also tested in strikes which occurred in the stevedore in dustry in 1949 em ployees. T h e stranding of substantial num bers of union ized seam en in H a w a ii follow ing strikes in 1934 and 1936 on the m a in la n d ’s W e s t C o a st created favorable and a sign of its growing strength. its m em bers h ad cast 1 5 ,400 v otes favoring the conditions for workers in the T erritory. the organization of A p p ro xim ately 1 ,200 seam en were stranded after the 1936 strike, which and in the pineapple in dustry in 1947 and 1951. T h e 1949 strike in volvin g w aterfront workers a t tem p ted to establish the principle of new contract term arbitration and to achieve w age p arity w ith w aterfront workers on the m ain lan d ’s W e s t C o a st. The 1947 strike against 8 pineapple com panies also in volved the w age issue. lasted 98 days. The 1951 strike w as directed against the H aw aiian Pineapple C o . C o n co m ita n tly , the N a tio n a l L a b o r R elation s (W a g n er) A c t , passed in 1935 to protect the rights o f em ployees to organize and bargain collectively w ith their em ployers, helped to provide a fou n d a tion for later organizational efforts in H aw aii. T h e first N a tio n a l L a b o r R elation s B oard consent election under the act was held on O ctober 10, 1940, at the M c B r y d e Sugar P lan tation and in v olv ed L o ca l 76 of the C I O T h is election resulted in C an nery W orkers. the first collective bargaining agreem ent, signed A u g u st 6, 1941, in the sugar in dustry. T h e first w aterfront agree over the issues o f industryw ide bargaining and union security. Thereafter, relationships betw een the IL W U and the m a jo r em ployers in H a w a ii were ostensibly quiescent until a dispute flared in the su m m er of 1955 at the O n om ea Sugar C o . Som e observers explained the lack of overt conflict on the basis th at the union needed to stabilize its position in H a w a ii in order to m eet the com p etitive pressures from the Sailors’ U n io n of the Pacific (A F L ) and the T eam sters U n io n ( A F L ) , b oth on the W e s t C o a st. m en t was signed w ith the Internation al L o n g shorem en’s and W a reh o u sem en ’s U n ion on June 2 The I L W U (Ind.) was expelled from the Congress of Industrial Organi zations on August 29, 1950, on charges that it was Communist dom 12, 1941. inated. 87 Labor Relations in the Sugar Industry L eadin g representatives in the sugar industry subsequently com m ented on labor-m an agem en t T h e 1955 dispute which occurred w hen the O n o - relations in the sugar in dustry, n oting som e im m ea Sugar C o . laid off 35 hand weeders reflected provem ents and the existence o f good relations in the basic shortcom ings o f an ‘ 'arm ed truce” col certain plantations b u t also th a t these instances lective bargaining arrangem ent. were exceptional. O n M a y 3 0 , 530 R . G . B ell, vice president and em ployees of the co m p an y w alked off the jo b general m anager o f A lexan der & B a ldw in , L t d ., protesting the la y o ff action. stated th at— In the background o f the dispute was the rejection b y em ployers in the industry of the I L W U ’s dem and to negotiate an adequate industryw ide “ severance p a y ” pro vision on the ground th at the current industryw ide contract w as n o t due to expire until January 31 , 1956. A lla n S. D a v is, president o f the H aw aiian Sugar P l a n t e d A ssociation, accused the union o f “ flagrant” violations of its contract. “ T h e u nion” . . . the isolation and interdependence of the average plantation community has created some social problems which, under the [ILW U’S] leadership, have been brought into the economic area for the purpose, I believe, to make it more difficult for them to be solved. Why should this be so? Apparently to create sources of potential conflict which can be brought to light as needed to create griev ances which in turn help to create militancy and depend ency on the union.5 he said, “ gave . . . assurance [against strikes] in a w ritten contract in return for substantial benefits J. E . Russell, president, T . H . D a v ie s & C o ., granted b y the com panies to the em ployees and L t d ., pointed o u t th at “ in som e areas o f their the union. T h e union has since seen fit to dis regard its pledge, n o t once b u t a n u m ber of tim es, and has flagrantly violated the contract agree m en ts dealing w ith layoffs due to jo b elim ination continued: “ . . . if contracts can be broken b y the I L W U w ith im p u n ity at tim es and places o f the u nion’s ow n choosing— such as a t O n om ea— then no segm ent o f the in dustry is safe from these unwarranted and destructive ta ctics.” In a sim ilar vein, the 1954 A n n u a l R ep ort o f the H aw aii E m p loy ers C ouncil previously had pointed o u t th a t although the n um ber o f m a n -d a y s idle due to strikes w as the low est since 1945, 16 strikes had occurred in the T erritory in 1954. E leven of these h ad been initiated b y the I L W U , according to the report, and “ . . . 10 o f these were in violation of no-strike clauses in the contracts.” Jack H a ll, I L W U R egional D irector fo r H aw aii, in a L a b o r D a y address, replied to the accusation b y D a v is. H e said: An examination of each of the so-called 11 “ illegal” strikes in the sugar industry since March 1954 shows that with two exceptions— the lockout at Naalehu and the walkout at Onomea— all were minor and of an incon sequential nature . . . The 11 walkouts were spontaneous ones. In practically every case the men were disciplined for the claimed violation of the agreement, as provided in the agreement, usually by suspension from work . . . the [employers] talk about these very minor disturbances as if they rocked the financial foundations of the industry. 371655— 56------ 7 h ave im p ro v e d ,” and th a t there w as “ real hope o f achiev ing com patibility in the fu tu re.” questioned the u nion ’s basic H o w ev er, he a ttitu d e tow ard em ployers: and the handling o f grievances.” 3 D a v is jurisdiction, relations w ith the I L W U The major stumbling block is uncertainty as to the policy of the [ILWU] . . . which represents employees in the sugar industry. In 1948, Mr. Harry Bridges made the following state ment before a committee of the United States Congress: “ It is our . . . policy . . . that they (union members) can’t trust an employer, that if they depend upon an employer for type of security [and] fair treatment, they’ll get stung and that is what we tell them.” He also told that committee that the interests of the workers and those of the employers are adverse and antagonistic; that there was, therefore, no common meeting ground, no basis for any permanent mutually satisfactory agreement. That does not sound as though the ILW U was interested in sort of compatibility at that time. Remember, he wasn’t talking about any employer. He was talking about all employers . . . I think that . . . this kind of attitude is a serious obstacle, not only to our sugar industry, but to the entire future progress of Hawaii.5 any always any particular Sugar in d u stry spokesm en also discussed the in d u stry’s econom ic position in the ligh t o f pend ing w age negotiations. A . G . B u d g e, president • Statement in the (Honolulu) Advertiser, June 25, 1955. 4 ILWU broadcast over station KHON, Honolulu, September 9, 1955. • Speech delivered to West Honolulu Rotary Club, September 2,1955 (p. 8). • Speech delivered to Main Kiwanis Club, September 1, 1955 (pp. 8-9). 88 o f C astle & C ooke and second vice president of the H aw aiian Sugar P l a n t e d T ra d e U n io n M e m b e rs h ip 1 in H a w a ii, 1 9 3 5 - 5 3 A ssociation , said: “ T h e in dustry is in no position to p a y m ore either directly or indirectly to labor w ithou t hazarding its future. G. W . T h is is u nfortunate, but tru e.” 7 Sum ner, president of A m erican F actors and first vice president of the H aw aiian Sugar P lan ters’ A ssociation , did n ot quite rule out a n y w age adju stm en t, b u t noted th a t “ . . . we cannot m ake concessions beyon d w h at prudent business ju d gm en t dictates. I f we h ave to sa y ‘N o ’ , we will m ean i t .” 8 A t the recent I L W U Septem ber 1955, convention in H ilo , in L ou is G o ld b la tt, the u nion ’s international secretary-treasurer, responded to the em ployers’ argum ents indicating th at the union w ould be fair in the forth com ing contract n egotia tions b u t th a t the em ployers would h ave to sup port their claim s o f in ability to p a y wage increases. T h e union w as entitled to all the facts, he stated, and, if w ages were to be held at present levels, “ the burden of proof m u st fall on the em ployer in view of national w age hikes, enorm ous increases in p rodu ctivity by sugar workers, and their declining share of the revenue dollar.” T ra d e U n io n M e m b e r s h ip C o m p lete and accurate m em bership figures are extrem ely difficult to obtain . creases occurred in 1945, due to the rem oval of E v e n if all union m ilitary controls in 1944, spiraling prices, and re locals supplied such data, varied definitions used new ed organizing a ctiv ity w hich w as facilitated b y b y unions to report m em bership would pose the a willingness on the part o f m a jo r em ployers to problem of com parability. agree to N L R B representation elections requested tices used by unions to C on cepts and prac m easure m em bership differ w idely and, in addition, the records o f local unions are frequen tly in com plete.9 H aw aiian b y unions. T h e I L W U is the largest single union in the T erritory, w ith extensive bargaining rights in the trade union m em bership data are rough approx sugar, pineapple, and longshore industries. im ation s, p ayin g m em bership claim ed b y the union in 1955 from based on fragm entary data available union Territorial is 2 2 ,5 0 2 , com pared w ith 23,5 7 1 in 1954, and is D ep a rtm en t of L ab o r, and the H aw aii E m p loy ers distributed, b y industry, as follow s: Sugar, 1 4 ,8 1 2 ; Council. convention reports, T hese d ata are the D u es- intended m erely provide som e basis for trend com parisons.10 to (See ch art.) M em b ersh ip grow th w as slow follow ing the en actm en t of the N L R A in 1935 and the occur rence of m a jo r W e s t C o a st strikes. Im m ed ia tely prior to W o r ld W a r I I , a substantial upsurge oc curred. M em b ersh ip declined during the m ili tary occupation bu t b y the end of 1944 it had alm ost regained the prewar level. M a jo r in - 1 Speech delivered to Affiliated Chambers of Commerce of Hawaii, August 26, 1955 (p. 4). 8 Speech delivered to Hilo Kiwanis Club, August 26, 1955 (p. 8). • Even on the mainland, where unions submit comprehensive reports of trade union membership to the U . S. Department of Labor, Bureau of Labor Statistics, problems of comparability of membership data have not been completely resolved. 10 Thirty-two international unions claiming membership in Hawaii re ported to the U . S. Department of Labor, Bureau of Labor Statistics, a com bined Hawaiian membership of 33,000 in 1954. See Directory of National and International Labor Unions in the United States, 1955 (B L S Bull. 1185). This total represented approximately a sixth of the estimated Hawaiian civilian labor force. 89 pineapple, 5 ,1 3 1 ; longshore, 1 ,7 9 0 ; and m iscella neous, 7 69. T h e decline in I L W U m em bership T able 1.— N u m b e r o f N a tio n a l L a b or R ela tion s B oa rd representation elections held , a nd n u m ber in which u n io n s were certified , H a w a ii , 1 9 3 8 - 5 4 is largely attribu table to em p lo ym en t declines in the sugar and pineapple industries, arising ou t of Elections held Year Unions certified Elections held Year * Unions certified m echanization and other fa cto rs.11 U n ity H ou se, which includes the T eam sters, H o te l & R estau ran t E m p loy ees, and other unions, claim s m em bership o f approxim ately 3 ,5 0 0 . T hese unions h ave m em bers in the m ajor hotels, dairies, m ilk p rodu cts industries, local transit, and other industries. M em b ersh ip in these unions has been increasing. N L R B 1938..................... 1939_________ __ 1940___________ 1941___________ 1942......... ........... 1943....... ......... 1944..................... 1945___________ 1946..................... 1 6 4 4 0 6 34 61 95 3 7 4 4 0 6 34 66 105 1947..................... 1948......... ........... 1949..................... 1950................... 1951................... 1952.. 1953................... 1954. 25 10 10 12 17 26 42 37 18 7 6 9 9 18 34 24 1 Figures are on a fiscal year basis starting in 1948. Source: N L R B regional office, Honolulu, T . H . R e p r e s e n t a t io n T h e aggressive organizing efforts in recent years P r o c e e d in g s and particularly in the p ast 3 years are reflected A review of the representation petitions before in the votin g record in representation elections the N a tio n a l L a b o r R elation s B o a rd illustrates since 1947. graphically the grow th o f the trade union m o v e n o t been easy. m en t in H aw aii. R ela tiv ely few com panies have indicate th at during 1 9 4 8 -5 4 abou t 30 percent of agreed to recognize em ployee organizations w ith the total valid votes cast were for “ no union” ; in o u t prior certification b y 1954, over 40 percent v oted “ no union” (table 2 ). the N L R B th at the N evertheless, recruiting efforts h ave T h e record o f N L R B elections union represented a m a jo rity of the em ployees in the appropriate bargaining unit. D a t a con O th e r In d ic a to r s o f U n io n G ro w th cerning the num ber of representation elections in which the unions w on certification from 1938 through 1947 p oint up the fa ct th a t the m ajor In addition to the union gains indicated in N L R B representation proceedings, the increased drive for union recognition follow ing the liftin g of n um ber of contracts in force and strike activ ity w artim e m ilitary restrictions was highly successful were also m easures o f advances in unionization in (table 1). H aw aii (table 3 ). In 1944, 1945, and 1946 alone, the N L R B certi fied 190 unions as bargaining agents. In addition, the H aw aii E m p lo y m e n t R elation s (Little W agn er) L ab o r-m a n a g em en t lowed the m ainland agreem ents pattern, generally particularly fol w ith respect to provisions for longer term contracts A c t , enacted in 1945, provided for representation which sought to achieve industrial stability. election m achinery for em ployees n ot covered b y large m a jo rity of the agreem ents concluded in T h e elections 1954 and 1955 were m ade effective for held in 1945 and 1946 under the H aw aiian statu te than the usual the N a tio n al L ab o r R elation s A c t . also resulted in substantial union victories. The net result was the organization o f the bulk of the 1-year term . A longer T h e stevedoring T able 2.— R esu lts o f representa tion elections conducted b y the N a tio n a l L a b or R ela tion s B oa rd in H a w a ii , 1 9 4 8 - 5 4 sugar and pineapple in dustry w ith a potential em Valid votes cast ployee m em bership in excess of 2 0 ,0 0 0 . The I L W U , however, has blamed Arthur A . Rutledge, local president and business manager of the A F L Teamsters, for its failure to increase its membership. A statement from an I L W U report is quoted in the (Hono lulu) Advertiser of Sept. 23, 1955, as follows: “ Whenever the I L W U organ ized a new group of workers, Rutledge . . . in collaboration with certain employers, conducted an a n ti-IL W U smear campaign.” The union passed a resolution on “ labor unity” which read in part, “ The Rutledge-led Team sters are now engaged in open warfare against our union. . . . W e will continue our fight for labor unity with all working people even though it may require bypassing certain ‘misleaders’ of labor.” Rutledge replied: “ The only thing that stands between the domination of the economy and the political situation and the business community by the I L W U , is the Teamsters Union, and they know it.” Fiscal year 1954............ . 1953.............. 1952.............. 1951.............. 1950.............. 1949.............. 1948.............. Em ploy ees eligible to vote Total valid votes cast 1,068 2,083 1,245 979 1,323 316 903 1,021 1,821 1,123 828 1,188 284 725 AFL affili ates C IO affili ates 443 881 611 215 543 49 134 0 0 0 47 0 0 0 Unafflliated unions i No figures available. Source: N L R B regional office, Honolulu, T . H . 149 462 34 325 354 37 473 No union 429 478 478 241 291 198 118 Employ ees in units choosing represen tation 690 1,761 933 614 1,056 0) 0) 90 T a ble 3. Year 1940— 1941— 1942__ 1943---1944---1945---1946.... 1947.... —Number of contracts in force and strike activity, Hawaii, 1940-54 Num ber of Num Num con ber of ber of mantracts strikes days idle in force Year 7 33,200 11 34,000 2 67 4 716 1 60 9 8,875 19 1,909,779 22 91,116 0) 0) 0) 12 14 76 167 176 Num ber of Num Num con ber of ber of mantracts strikes days idle in force 1948— 1949---1950---1951---1952— 1953---1954.... 156 141 121 129 132 132 132 11 6 53 17 30 21 16 121,194 244,624 61,052 150,625 81,256 91,631 39,764 * Data not available. Source: Territorial Commission of Labor and Industrial Relations and Annual Reports of the Hawaii Employers Council. the impact of disputes and settlements on the West Coast. Employers in Hawaii have made efforts, however, to limit the unions’ contractual strength and to prevent “restrictive union con trols” in the collective bargaining agreements. U nion Security. In discussing the issue o f union security in its 10th anniversary report (1 9 5 3 ), the H a w a ii E m p loy ers C ou ncil pointed o u t its con tinuing opposition to the union shop because of its “ encroachm ents on the rights and freedom s” o f em ployees. T h e statu s o f union-shop agree m en ts in H a w a ii is illustrated in a report prepared b y the council in June 1950. T h e stu d y com pares com panies signed a contract w hich expires June the collective bargaining provisions o f 4 0 0 m a in 15, 1 9 5 6 ; the 7 m a jo r pineapple com panies signed land agreem ents collected b y the B u reau o f N a a contract w hich runs to F ebru ary 1, 1 9 5 6 ; and tional Affairs, In c ., w ith 150 H a w a ii agreem ents the sugar com panies extended their agreem ents representing to January 31 , 1956. in effect in the T erritory. In addition, the H on olu lu R a p id T ran sit C o . agreed to a J u ly 16, 1957, con a m a jo rity o f the contracts then A lth o u g h the council’s stu d y covers all m a jo r contract provisions, the tract term ination d ate and the H aw aiian T e le com parison presented is lim ited to union-security phone C o . n egotiated a contract extension to D e provisions. cem ber 3 1 ,1 9 5 7 . L a te in 1955, the M a ts o n N a v i Percent of agreements having union-security provisions in— United States Hawaii gation C o . reached an agreem ent which covers its em ployees in four W a ik ik i hotels and rim s until M a y 31 , 1957. Issues Affecting Industrial Stability T h e statu s o f u n ion -m anagem ent relations in H a w a ii is pointed up in disagreem ents over crucial issues in volvin g bargaining union rights. security T h ese and conflicts collective represent a departure from the general practice in w hich col lective bargaining developm ents in H a w a ii are Closed shop_______________________________ Union shop________________________________ Maintenance of membership_______________ Revocable checkoff of dues________________ Irrevocable checkoff_______________________ Renewal irrevocable_______________________ Initiation fees deducted___________________ 5 50 15 5 45 15 30 (*) *7 0 2 72 38 67 1Less than 1 percent. * Mainly includes firms which are nonmembers of the Hawaii Employers Council. Further evidence of the em ployers’ im ple m en tation of their opposition to the union shop patterned after those on the m ainland. I n the background o f this variance from m ain is available in a later analysis o f 143 agreem ents land accom plishm ents in union-em ployer accom m ad e b y the council in M a y 1953. m od ation was the T errito ry ’s significant lag in show ed no unionization com pared w ith th at on the m ainland, 20 pineapple, 9 longshore, and 26 trade contracts. particularly in the 1 9 3 0 ’s. H ow ever, union-shop agreem ents were fou nd in In addition, adap ta union-shop industries: 7 in food T h e stu d y 26 sugar, tions o f m ain land labor developm ents were neces the sary to m eet local needs. and m anufacturing, 2 in utilities and transporta Because o f H a w a ii’s follow ing provisions in processing unique position— its h ighly integrated econom y, tion, 4 in construction, and 4 in all other indus dependence on w ater transportation, and vulner tries. a bility in case o f a m a jo r dispute, as well as the and all other independent unions h ad dom inance b y the I L W U o f the Islan ds’ m a jo r The T eam sters h ad industries— em ployers h av e sough t to incorporate Electrical W o rk ers, 1 ; and other A F L unions, 6. safeguards M o s t o f the contracts w ith union-shop clauses in agreem ent provisions. U n fo rtu T h e I L W U h ad no union-shop agreem ents, 7; the M a ch in ists, on ly 2; 1. the n ately m u tu a l “ good fa ith ” cann ot be inscribed were betw een unions and em ployers w ho were n o t in agreem en ts; nor can contracts be shielded from m em bers of the council. 91 C on tracts recently negotiated, how ever, h ave incorporated so-called “ security lan gu age.” The Interpreting the discharge clause in a case in v olvin g the H o n olu lu C on stru ction & D ra y in g C o . strongest provision sh ort o f a union-shop clause and A F L thus far n egotiated rea d s: board held th a t refusal to cross a picket line w as a The company acknowledges its belief in a strong and responsible union. The company also recognizes that a strong and responsible union is possible only to the extent that the employees take part in the union and its activities. The company declares that it will not make any state ment nor commit any act to discourage any employee with respect to membership in the union.— Agreement between the Hawaiian Electric Supply Co. and the Inter national Brotherhood of Electrical Workers, Local 1260 (AFL). T ea m sters L o ca l 9 9 6 , an arbitration violation o f the section o f the contract which required, am o n g other things, th a t the em ployees “ perform w ork as required.” 13 In the Shell Oil case (see footn ote 1 2 ), T ea m sters1 L oca l 904 had contended th a t the oil com panies and the H a w a ii E m p loy ers C ou ncil violated the provisions o f the N a tio n a l L a b o r R elation s A c t b y stipulating the “ three clauses” as a condition precedent to collective bargaining and insisting th a t the em ployees give up rights protected under The “ Three Clauses.” Perhaps no issue has created as m u ch controversy betw een em ployers and n on I L W U unions as the continuing insistence b y the em ployers on the inclusion in their contracts o f the “ three clauses,” n a m e ly : (1) no-strike, n o lockou t clau se; (2) no-discrim ination clau se; and (3) discharge clause.12 The unions h ave con tended th at the H a w a ii E m p lo y ers C ou ncil, as the organized spokesm an for the m a jo r com panies the act before the em ployer would gran t a n y collective bargaining concessions. The trial ex am iner upheld the com plaint b u t w as reversed b y the N a tio n al L a b o r R elation s B oard after the L a b o r M a n a g e m e n t R elation s (T a ft-H a r tle y ) A c t w as passed. T h e B oard held th a t: . . . the evidence is insufficient to establish that the council used unlawful means in persuading the oil com panies to insist on the inclusion of the three clauses. in H a w a ii, has utilized these clauses to restrain U n ion objections to the three clauses were based and im pede the exercise b y the em ployees o f their n ot o n ly on the ground th a t the em ployers were rights to engage in norm al union a ctiv ity , includ seeking to underm ine their strength b u t also th a t ing the refusal to cross a bon a fide picket line. th ey could not negotiate effectively w ith em ployers because o f the insistence o f the council on a certain “ p olicy ” position. 11 For a detailed discussion of the 3 clauses, see the National Labor Rela tions Board's decision in Shell Oil et al., 23-C-40, 43, 44, June 22, 1948, 77 NLRB 1306. See also Paul F. Brissenden, The “Three Clauses” in Hawai ian labor agreements (in Political Science Quarterly, Mar. 1953, pp. 89-108) and William Nakaue, The Three Clauses in Labor Relations in Hawaii (research manuscript), University of Hawaii library, 1955. The three clauses at issue in the Oil cases are reproduced as follows: “The parties hereto agree that during the term of this agreement any past, existing, or future custom or practice of the employer or the union to the contrary notwithstanding, there shall be no lockout by the employer, nor any strike, sitdown, refusal to work, stoppage of work, slowdown, re tardation of production, or picketing of the employer on the part of the union or its representatives or on the part of any employee covered by the terms of this agreement. “The employer will not discriminate against any employee because of his membership in the union or for legitimate union activities: Provided, however, That such activity shall not interfere with employer’s operations, and must not be conducted during working hours unless expressly pro vided for in this agreement. The union agrees for itself and its members that neither it, its representatives or members will attempt to intimidate or coerce any employee of the employer for the purpose of compelling such employee to join the union. “Employees shall be subject to discharge by employer for insubordination, pilferage, drunkenness, incompetence or failure to perform the work as re quired, or for failure to observe safety rules and regulations and employer’s house rules, which shall be conspicuously posted. Any discharged em ployee shall, upon request, be furnished the reason for his discharge in writing. Probationary and temporary employees may be summarily discharged.” “ 1 American Labor Arbitration Awards (p. 67,824, par. 67,359). Hono lulu Construction & Draying Co. Decided October 10,1945. O n M a rc h 2 9 , 1947, the T eam sters and the I L W U advised the council as follow s: Because your council has given to its members the im pression that unions have agreed by signing certain clauses to give up their statutory rights and because this is not true, the undersigned hereby inform you that we are in complete agreement on the question of crossing bona fide picket lines at the direction of employers. While we may have our differences— 1. We will not cross bona fide picket lines at the direc tion of your council or your members. 2. We will not conspire with your council or your mem bers to do away with workers* rights guaranteed by the National Labor Relations Act. 3. We will not permit Hawaii's monopolists to play one group of workers against another and thus destroy unions in these Islands. all T h e council, on the other han d, as the em ployers' representative in collective bargaining m atters, argued th a t their unified position w as intended to avoid alleged “ w hipsaw ing” ployers b y the unions. of individual em O ther unions h ave con tended, how ever, th a t the I L W U w as able to 92 avoid these restrictive clauses in its contracts, or term s o f tourist appeal, m akes relied on its economic strength to preven t em econom y vulnerable in case o f a m a jo r w ork sto p ployers page^— particularly on the w aterfront, and in the from insisting on strict application of these provisions. the T errito ry ’s basic sugar and pineapple industries. A rn old W ills, form erly N L R B officer-in-charge Am ong the factors which m ilitate against a in H on olu lu , in a speech to the H o n olulu R o ta r y high degree o f industrial peace in the im m ediate C lu b , on Septem ber 12, 1950, sa id : future are the exceedingly rapid unionization o f I can truthfully state that I know of no single item which in the last few years has caused so much bitterness and hostility and frustration among labor leaders and among unionized employees in general as employer insist ence that these three clauses go into every contract. I believe such insistence to be detrimental to our commu nity since they penalize those unions which believe con tracts are sacred and honestly strive to negotiate contracts they can live with and honor. They mean nothing to people who believe a contract is a scrap of paper— a truce in a class war . . . Lastly, they just don’t work. Employer Council figures indicate that there have been approximately 40 contract violations in the form of strikes, walkouts, or quickies . . . since January 1, 1950 . . . Aside from the attitude that a contract is only a truce in a class war, there will always be men who will refuse to cross a picket line when their best manly instincts tell them it is dishonorable and dis reputable to help break a worthy strike.*14* the Islands and the distrust betw een em ployers and labor th a t was bred b y the character of labor-m an agem en t relations in the p ast. W ork ers h ave supported I L W U claim s, convinced th a t the gains in wages and w orking conditions h ave been obtained on ly because of the union ’s m ilitan t efforts. T h u s, the h ighly integrated H aw aiian econom y w as particularly susceptible to union organization. T h e I L W U , first as an affiliate of the Congress o f Industrial Organizations and later as an independ ent union follow ing its ouster from the C I O in m id -1 9 5 0 because o f its C om m u n ist-orien ted p ol icy, has acted “ m ilita n t” bread as an union, effective and w ith interests and b u tter union goals. a d m itted ly beyond basic T h e failure of A F L and C I O affiliates to obtain a foothold in the T erritory has resulted in the dom inance o f the O u tlo o k f o r L a b o r - M a n a g e m e n t R e la tio n s That lab or-m an agem en t H aw aii is unquestioned. peace is v ita l I L W U in the sugar, pineapple, and ocean trans in T h e recent testim on y b y R a n do lph Sevier, president of M a tso n N a v ig a tion C o ., before the H o u se C o m m ittee on M e r ch an t M a rin e and Fisheries, indicates the high priority he places on reasonable sta b ility in lab orm a n agem en t relations in the ligh t of his c o m p a n y ’s plans for greater expansion o f trade in the Pacific area. M r . Sevier is quoted as sa y in g : road to greater industrial sta b ility in H a w a ii is sim ilar to th a t which m u st be taken on the m ain land. H o w ev er, H a w a ii’s need for indus trial peace is greater than on the m ainland, be cause a m a jo r labor dispute in the T erritory has wider and deeper repercussions. isolation o f the Islan ds, T h e geographic although favorable in industries— a sizable segm ent o f industrial operations in the Islan d the com m u n ity. A num ber o f disturbing situations, several con cerning developm en ts on the m ain lan d ’s W e s t C o a st, m a y effect a change in the pattern o f la b orm an agem en t relations in the T erritory. T h ese developm ents include renewed efforts to deport H a rry Bridges and other officers of the I L W U 16 and continued jurisdictional disputes betw een the IL W U I feel the weight of the testimony you’ve received in these hearings focuses on one urgent immediate problem: The need for stability of labor relations in the maritime indus try and emergence of true collective bargaining between labor and management. . . . The problems inherent in Matson’s offshore service to Hawaii must be solved because the isolation of the Islands demands the maintenance of this vital transportation link by oceangoing vessels.16 The portation and the S U P (A F L ) and the T eam sters (A F L ). L o ca lly , several current developm en ts will sig nificantly affect u nion -m anagem ent relations. T h e I L W U is presently planning its dem an ds for negotiations in sugar, pineapple, and stevedoring industries which are scheduled for 1956. The sugar agreem ent, which expires January 31 , 1956, is first on the u nion ’s bargaining agenda. The 14 Arnold L. Wills, op. cit. (pp. 22-23). u (Honolulu) Advertiser, June 29, 1955. 14 The fifth effort to deport Bridges failed when Federal Judge Louis E. Goodman dismissed the Government complaint, stating: “My conclusion is that the Government has failed to prove the allegations of this complaint as to the respondent’s alleged membership in the Communist Party by clear and convincing evidence.”—Honolulu Star Bulletin, September 29, 1955. 93 issue of severance p a y m a y com plicate the n ego tiating picture in this industry. The have already E m p loy ers C ouncil on the union-shop issue and ganizational efforts b y the I L W U created som e com petition w ith A F L affiliates and other independent unions. security issue, how ever, is still v ery controversial. Increased or unions continue to oppose the H aw aii its participation a t the bargaining table. The In addition, a n u m problem of the ideological character o f ber o f A F L international unions h ave indicated I L W U leadership rem ains w ith o u t a n y indication an interest in a m em bership drive particularly in o f action b y the m em bership to m o d ify or resolve the it. building M a tso n trades. N a v ig a tio n By Co. contrast, the agreem ents recent w ith the T h e S m ith A c t trial and conviction o f Jack H a ll, I L W U regional director, as part o f the C o m A F L T eam sters covering the firm ’s hotel em ploy m unist conspiracy, is being appealed. ees h ave avoided som e m a jo r contract problem s. press T h e econom ic situation, on the w hole, is p rom reports frequ en tly criticize R a d io and the u nion’s leadership, b u t apparently exert relatively little ising and m a y help to m inim ize labor-m anage influence on the m em bership. m en t problem s. so-called “ righ tw in g” union groups, such as B e r t hotel and F avorable developm ents in the tourist industry, increased m ilitary N a k a n o ’s, b y Splinter efforts o f and large h ave been ineffective. expenditures, and a growing interest of m ainland T h e feeling seem s to be prevalent th at a n y changes capital in Territorial business ventures m a y pro in basic philosoph y will h ave to com e from w ithin vide the I L W U . enough H eavy “ organizing construction elbow ro o m ” ou tla ys planned by for all. m a jo r T h e A F L - C I O m erger will h ave little effect on com panies suggest a favorable business environ unionization in the T erritory. m en t in the n ext few years. ently, T h e dispute over the “ three clauses” seem s to be in abeyance, although still disturbs m a n y AFL the picket-line issue officials. The u nion - the T o date, appar total potential m em bership drive by an individual international group of unions. “ . . . T h e sto ry of H a w a ii’s in du stry [until the m id-tw enties] . . . has been the sto ry o f a tree, an anim al, and a p lant. T h e tree w as sandalw ood— the great article o f export which w as shipped to C h in a in great quan tities in the early days. So feverishly did the chiefs com pel the people to cu t sandal w ood th a t b y 1825 it was becom ing extin ct and it is n ow com m ercially u n ob tainable in the Islan ds. T h en cam e the period w hen prosperity depended on an anim al— the w hale w hich, it m a y be noted incidentally, is a m a m m a l and n o t a fish. F ro m 1820 onw ard great fleets o f w haling ships, m o stly A m erican , brou ght prosperity to the Islan ds b y their purchases o f supplies. B u t the C iv il W a r , and a later disaster in the A rctic Ocean, w rou gh t h av o c w ith the w haling fleet and the kerosene lam p m ade whale oil alm ost a curiosity, so th at b y 1870 the w haling fleet h ad ceased to be an econom ic resource and the Islan ds were left w ith ou t an occupation or a m a rk et; for the plan t, the sugar cane, upon which H a w a ii’s third era of econom ic prosperity depends, did n ot becom e the dom in an t industrial factor until the reciprocity trea ty of 1876 opened the A m erican m ark et to H aw aiian sugar free o f d u t y .” Albert W. Palmer, The Human Side of Hawaii— Race Problems in the Mid-Pacific, Boston and Chicago, Pilgrim Press, 1924 (p. 42). has n o t offered sufficient incentive for a m a jo r organizing union or Bibliography on Labor Conditions, Labor Problems, Labor Economics Current Caribbean B ibliograp h y: A Cum ulative L ist o f P ublication s Issu ed in the Caribbean C ountries o f France, Great B rita in , the N ether lands and the U nited States, 1 9 5 0 -1 9 5 3 . P o r t- M a r g a r e t e M c B of-S p ain , T rin idad , C aribbean C om m ission , ride 1955. (V ol. 3, N o s. 3 - 4 .) T h e C om m ission states th a t th e n ext issue w ill be an annual n um ber for 1954, to be published as V o l. 4 ; hereafter the bibliograph y is to be produced N o t e .— A sterisk indicates publications not avail once a year rather than sem iannually. able fo r exam ination by com piler o f bibliography. A n o th er valuable aid is the R eport on S u rveys, Research P rojects, Investigations and Other Or ganized Fact-G athering A ctivities o f the Governm ent General Notes Territorial o f P uerto R ico, listed herein under “ P u erto R ico — Official P u b lication s.” statistics are included in general publication s o f the U . S . D e p a rtm e n t o f C o m m erce, B u reau o f the Census, such as the Statistical A bstract o f the U nited States and the 1950 C ensus reports on popu lation , agriculture, and housing. L a b o r legislation applicable to the Territories A n n u a l D igest o f State and Federal Labor L eg is J u ly at, 1958-S ep tem b er SO, W a sh in g to n , U. S. o f L a b o r, B u reau of Labor D e p a rtm e n t S tandards, 1955. (B u ll. T erritory of H a w a ii, o f the Puerto R ican R eport on S urveys . . ., noted above. I t s coverage, h ow ever, is broader, em nonofficial as w ell as govern m ental projects. F o r all three raphies areas here considered, bibliog appended to published w orks dealing w ith regional labor problem s (som e o f w hich m a y be located through the B ibliographic In d ex, H . W . U sefu l guides to references on labor problem s and conditions include such periodical indexes as the R eaders9 Guide to P eriodical L iterature, I n ternational In d ex to P eriodicals, In du strial A rts In d ex, Research, P u b lication s,” perform s a service sim ilar to th a t 1954. 178.) and B u lletin . E con om ic 1 9 3 0 -1 9 5 2 , listed herein under “ H a w a ii— Official bracing appears in the— lation, F o r H a w a ii, A bstra cts: A gricultural, In du strial and P u blic A ffa irs In form ation Service W ilso n C o ., N e w Y o r k ) lead to addition al perti n en t m aterial. Puerto Rico OFFICIAL PUBLICATIONS H ere, to o , should be n oted the M on th ly o f P u e rto R ic o . By C. Y. Shephard. ( I n Monthly Information Bulletin, Caribbean Commis sion, Port-of-Spain, Trinidad, 7:10, May 1954, pp. 228-231, 233-234.) A g ricu ltu re Catalog o f U . S . Governm ent P u blication s . Bibliographies and b oo k lists d evoted specifi ca lly to m atters o f labor interest appear in the M on th ly Labor R eview o f the U . S . D e p a rtm e n t o f L a b o r, B u reau o f L a b o r S ta tistics; the L ib ra ry J ou rn a l; and publications o f the In ternation al L a b o r Office. F o r P uerto R ic o , tw o useful area publications are a va ilab le: A m e n d in g the F a ir L a b or S ta nda rds A c t o f 1 9 3 8 . Hearings Before Subcommittee on Labor, Committee on Labor and Public Welfare, United States Senate, 84th Cong., 1st sess., on S. 18, S. 57, etc. Washington, 1955. Part 3 and Statistical Appendix contains considerable information on employment and wages in Puerto Rico. A n n u a l R ep o rt o f P u erto R ic o D ep a rtm en t o f L a b or. A n u a rio B ibliogrdfico P uertorriqu en o: In dice A l fa b itico de L ib ros, F olletos, R evistas y PeriSdicos P ublicados en P uerto R ico. R io Piedras, B iblio teca de la U n iversidad de Puerto R ico . A v a ila b le to 1952. 94 San Juan. * By Juan S. Bravo. San Juan, Departamento del Trabajo, Oficina de Servicios, Divisidn de Imprenta, 1952. 24 pp. 2d ed. A p u n te s S o bre el M o v im ie n to Obrero en P u erto R ic o . 95 (formerly the M o n t h l y In fo rm a tio n B u lletin ) , a publication of the Caribbean Commission. Port-ofSpain, Trinidad. Monthly. Each issue contains some information on phases of Puerto Rican development, closely related to labor conditions and problems of that Commonwealth. “ Social and Economic News of Caribbean Interest” is a regular feature. Major articles of the past 3 years which treat aspects of the Puerto Rican labor scene are individually listed in this bibliography. T h e Caribbean San Juan, Office of the Governor, Puerto Rico Planning Board, Bureau of Economics and Statistics. Supplement to Statistical Y ea rb oo k . Includes statistics on number of employees and total wages paid. Latest available edition, 1952. C en su s o f M a n u fa c tu r e s. E m p lo y m e n t, H o u r s a nd E a r n in g s in M a n u fa c tu r in g I n d u s tries i n P u e rto R ic o , October 1 9 5 2 to A u g u s t 1 9 5 4 . San Juan, Department of Labor, Bureau of Labor Statis tics, 1954. 18 pp. * E sta d lsticos.] San Juan, Minimum Wage Board, Division of Research and Statistics. Statistical studies of specific businesses or industries in Puerto Rico. [E stu d io s F o m en to de P u erto R i c o : R evista T rim estra l D ed ica d a a las A ctivid a d es E co n d m ica s del E sta d o L ib re A s o cia d o de P u erto R ic o . San Juan, Administracidn de Fomento Econ6mico. F ren te del T ra b a jo : H o m b re s y M u je r e s que L a b ora n y By Fernando Sierra Berdecfa. San Juan, Departamento de Hacienda, Oficina de Servicios, Divisidn de Imprenta, 1952. 49 pp. Revision (to February 1951) of an article originally published in Colecci6n Americas, Vol. X , Puerto Rico, Barranquilla, Colombia, 1949. P rod u cen . By Nathan Koenig. Washington, U. S. Department of Agriculture (in cooperation with the Commonwealth of Puerto Rico), 1953. xii, 299 pp., bibliography, maps, illus. Analyzes condition of agricultural laborers in Puerto Rico. A C om p reh en sive A g ricu ltu ra l P ro g ra m f o r P u e rto R ic o . By Fernando Sierra Berdecfa and A. J. Jaffe. (I n Monthly Labor Review, U. S. Department of Labor, Bureau of Labor Statistics, Washington, 78:3, March 1955, pp. 283-287.) T h e C on cep t and M e a su r e m e n t o f U n d erem p lo ym en t. C o n s u m e r s 1 P r ic e In d e x f o r W age E a r n er s ’ F a m ilies in P u e rto R ic o and R eta il F o o d P r ic e s. San Juan, De partment of Labor, Bureau of Labor Statistics. Monthly. English text; tables in English and Spanish. E c o n o m ic D evelo p m en t o f P u e rto R ic o , 1 9 4 0 - 1 9 5 0 , 1951- San Juan, Office of the Governor, Puerto Rico Planning Board, Economic Division, 1951. 179 pp. In c o m e s a nd E x p e n d itu r es o f W a g e E a rn ers in P u e rto R ic o . By Alice C. Hanson and Manuel A. Perez. San Juan, Department of Labor, 1947. 152 pp., diagrams. (Bull. 1.) Prepared in cooperation with the U. S. Bureau of Labor Statistics. In d u stria l D ev elo p m en t C om pany o f P u e rto R ic o [a case Economic Development of Under developed Countries; Evolution and Functioning of Development Corporations: Working Paper by Secretary-General [of United Nations], pp. 13-35. New York, 1955. U. N. Document E/2690, 19th sess., item 5.) stu d y], (In 1960. In fo rm a tio n By Roberto de Jesus. Monthly Information Bulletin, Caribbean Com mission, Port-of-Spain, Trinidad, 6:12, July 1953, pp. 269-270. Reprinted from F o m en to de P u e rto E c o n o m ic P r o sp e c ts o f M ig r a tio n . (In R ic o .) San Juan, Office of the Governor, Puerto Rico Planning Board, Bureau of Economics and Statistics, [1955?]. 55, 27 pp. Eng lish text; appendixes in English and Spanish. on P u e rto R ic o f o r the F isca l Y ea r E n d in g Transmitted by United States to Secretary-General of United Nations pursuant to Article 73 (e) of the Charter. Prepared by Govern ment of Puerto Rico. 176 pp. and appendix. Final report; cessation of reporting noted in Monthly Information Bulletin of Caribbean Commission, February 1953, p. 166. June 80, 1952. E c o n o m ic R e p o rt to the G overnor, 1 9 5 4 - San Juan, Departamento de Instruccidn Ptiblica. Includes reports of Divisions of Vocational Education and Vocational Rehabilitation. I n fo r m e A n u a l . E ffect o f L a b or C osts and M ig r a tio n o n the P u e rto R ic a n E con om y. ( I n Monthly Labor Review, U. S. Depart ment of Labor, Bureau of Labor Statistics, Washing ton, 78: 6, June 1953, pp. 625-627.) Summary of articles by Rottenberg and Senior in Annals of the American Academy of Political and Social Science, January 1953. In g r eso M o n e ta r io de la F a m ilia P u erto rriq u en a , Ano San Juan, Departamento del Trabajo, Negociado de Estadfsticas, Secci6n de Andlisis de Salarios y Estudios Especialea. [San Juan, 1953.] 6 pp. N a tu ra l 1950 ( A n d l is is P r e lim in a r ). 96 Revisada en Julio de 1953. San Juan, Departamento del Tra bajo, [1953]. Various pagings. Puerto Rican laws in Spanish; United States laws in English. L egisla cid n del T ra ba jo V ig en te en P u erto R ic o . Q ua rterly R ep o rt on the L a b or F o r c e : E m p lo y m e n t a nd U n San Juan, Department of Labor, Bureau of Labor Statistics, 1952-. em p lo ym en t in P u erto R ic o . R ep o rt on S u rv eys, Research P ro jec ts, In vestiga tio n s and Other O rga n ized F a ct-G a th erin g A ctiv ities o f the G overn E c o n d m ic o del M e s . San Juan, Junta de Planificacidn, Negociado de Economia y Estadlsticas. Monthly. Spanish and English text. Current business statistics. M o v im ie n io Organo Oficial del Departamento del Trabajo, Estado Libre Asociado de Puerto Rico. San Juan. Monthly. N o tic ia s del T ra ba jo. m ent o f P u e rto R ico , C onducted D u r in g F isca l Y ea r San Juan, Office of the Governor, Bureau of the Budget, Division of Statistics, 1954. iii, 89 pp. [3d ed.] Most recent available list of Puerto Rican Government projects. Also useful as a guide to publications and other sources of information in fields of labor interest. 1 9 5 2 -5 3 . [R eports on E c o n o m ic C on d itio n s i n P u erto R ica n In d u strie s.] By Rafael de J. Cordero. { I n Monthly Information Bulletin, Caribbean Com mission, Port-of-Spain, Trinidad, 6: 12, July 1953, pp. 268, 270-271. Reprinted from F o m en to de P u erto P o p u la tio n and Im m ig r a tio n . R ic o .) . . ] San Juan, Departamento del Trabajo, Negociado de Estadlsticas, Secci6n de Andlisis de Salarios y Estudios Especiales, Unidad de Investigaciones Ocupacionales. Descripciones Ocupacionales (series); Patrones Ocupa cionales (series). [P u b lica cio n es de la S eccidn de A n d lis is . P u erto R ic a n M ig r a t io n : S p o n ta n eo u s and O rganized. {In Monthly Information Bulletin, Caribbean Commis sion, Port-of-Spain, Trinidad, 7: 4, November 1953, pp. 73-75, 80.) Washington, U. S. Department of Labor, Wage and Hour and Public Contracts Divisions. These reports are prepared in connection with the administration in Puerto Rico of the minimum wage pro visions of the Federal Fair Labor Standards Act. The reports cover employment, weekly earnings, and working hours, in addition to various industry data. San Juan, Department of Labor, Bureau of Labor Statistics. These reports cover characteristics of the labor force, status of women and children, employment, unemploy ment, weekly earnings, etc. S pecia l R ep o rts on the L a b or F o rce. Y ea rb oo k . San Juan, Puerto Rico Planning Board, Bureau of Economics and Statistics. Annual. Statistical T ra in in g in the C aribbean. By Mrs. V. 0 . Alcala. { I n Monthly Information Bulletin, Caribbean Commission, Port-of-Spain, Trinidad: I, Trade and Industrial Education, 6: 4, November 1952, pp. 81-83; II, Guidance Services, 6: 5, December 1952, pp. 101102; III, Apprenticeship and On-the-Job Training, 6: 7, February 1953, pp. 151-152, 154; IV, Agricul tural Training, 6: 8, March 1953, pp. 176-178; V, Home Economics Education in the Caribbean 6: 9, April 1953, pp. 199-201; VI, Business Education, 6: 10, May 1953, pp. 223-224, 230.) V oca tion a l P u erto R ic a n s J o i n H a n d s : R e tu rn in g to the Isla n d after a F o u r -Y e a r A b s e n c e , a S o c ia l-W o r k P r o fe ss o r F in d s M a n y C h an g esr By Caroline F. Ware. { I n Americas, Pan American Union, Washington, 5: 6, June 1953, pp. 10-12, 41-42, illus.) P u e rto R ic o — E c o n o m ic B ack g rou n d to E d u ca tio n a l P ro b { I n Monthly Information Bulletin, Caribbean Commission, Port-of-Spain, Trinidad, 8: 4, NovemberDecember 1954, pp. 72-75, 96.) lem s. R ic o — I t s E d u ca tio n a l S y ste m . {In Monthly Information Bulletin, Caribbean Commission, Portof-Spain, Trinidad, 8:1, August 1954, pp. 5-6, 9.) Condensed from report of Puerto Rico Department of Education. P u erto V o ca tio n al T ra in in g . By Garcia Herndndez. { I n Monthly Information Bul letin, Caribbean Commission, Port-of-Spain, Trini dad, 7:12, July 1954, pp. 261-262, 268.) P u e rto R ic o — T w o D ecad es o f By Rafael Pico. { I n Monthly Information Bulletin, Caribbean Commission, Port-of-Spain, Trinidad, 6: 8, March 1953, pp. 169-173.) Discussion by chairman of Puerto Rico Planning Board of conditions in Puerto Rico which make it a good “ labo ratory” for technical cooperation. NONOFFICIAL PUBLICATIONS By Hiram R. Cancio. Rio Piedras, Universidad de Puerto Rico, Instituto de Relaciones del Trabajo, Colegio de Ciencias Sociales, 1953. 117 pp., bibliographical footnotes. E l A r b itra je O brero-P a tron a l en P u e rto R ic o . By William H. Nicholas. National Geographic Magazine, Washington, 99: 4, April 1951, pp. 419-460, illus.) G ro w in g P a in s B eset P u erto R ic o . {In P u e rto R ic o 's T echnical C oop era tion P rog ra m . By Simon Rottenberg. Rio Piedras, University of Puerto Rico, Labor Relations Institute, College of Social Sciences, 1951. 66 pp. Reprinted from R evista J u rid ic a of the University of Puerto Rico, Vol. X X , No. 2, November-December 1950. L a b or C ost in the P u e rto R ic a n E c o n o m y . 97 [News]. Organo Oficial de la C&mara de Comercio de Puerto Rico. San Juan. Monthly. Spanish text, with occasional articles in English. “ Sobre Seguro Social,” a regular feature. N o tic ia s R e u n io n e s de las U n io n es O breras. Rio Piedras, University of Puerto Rico, College of Social Sciences, Institute of Labor Relations, [1952]. 14 pp. * Las * By Elizabeth Wickenden. { I n Public Administration Review, Chicago, 13: 3, Summer 1953, pp. 177-183.) O bservations on P u b lic W e lfa r e in P u erto R ico . I s P u erto R ic o . By T. Swann Harding. { I n Antioch Review, Yellow Springs, Ohio, 14: 1, Spring 1954, pp. 43-54.) T h is S to r y o f M o d e r n P u e rto R ic o . By Earl Parker Hanson. New York, Simon & Schuster, 1955. xxiii, 416 pp., maps. General work containing much specific information on the labor situation. T ra n sfo rm a tio n : T h e “ O p era tion B o o tstr a p ” : A G reat In d u stria liza tio n P rog ra m in P u erto R ico A i m e d at G ivin g 2 ,2 0 0 ,0 0 0 T ra d ition ally Im p o v er ish ed A m e r ic a n s the C hance to L iv e D ec en tly By Howard Cohn. { I n Collier’s, New York, 129: 13, March 29, 1952, pp. 20-23.) in the F u tu re . “ O p era tion B o o tstr a p ” i n P u e rto R ic o — R ep o rt o f P r o g re ss , By Stuart Chase. Planning Association, 1951. Pamphlet 75.) 1951. Washington, National vii, 72 pp. (Planning Alaska OFFICIAL PUBLICATIONS A la sk a F is h e r y and F u r -S e a l In d u strie s , 1 9 5 8 . By Lydia J. Roberts and Rosa Luisa Stefani. Rio Piedras, Uni versity of Puerto Rico, Department of Home Eco nomics, 1949. xxiii, 411 pp., diagrams, illus. The findings reported are for the latter part of 1946. P a ttern s o f L iv in g in P u e rto R ic a n F a m ilies . and P rog ress in P u e rto R ic o . By Kingsley Davis. { I n Foreign Affairs, New York, 29: 4, July 1951, pp. 625-636.) P o p u la tio n P u erto R ico — A S tu d y in D em ocra tic D evelo p m en t . Edited by Millard Hansen and Henry Wells. { I n Annals of the American Academy of Political and Social Science, Philadelphia, 285, January 1953, pp. vii-viii, 1-166.) * P u e rto R ic o — E d icid n E s p e c ia l D ed ica d a a P u e rto R i c o . { I n Manana, Mexico, D. F., 61: 616, June 18, 1955, pp. 19-150.) P u erto R i c o : L a n d o f P a r a d o x ; T h o u sa n d s L eave f o r L a ck o f O p p o rtu n ities , Y e t I t I s P o ten tia lly an Isla n d o f H o p e . By Gertrude Samuels. { I n New York Times Maga zine, October 30, 1955, pp. 18, 62, 64, 67.) P u erto R i c o ’s E c o n o m ic F u tu re— A S tu d y in P la n n ed By Harvey S. Perloff. Chicago, Uni versity of Chicago Press, 1950. xviii, 435 pp., bibliography, maps, illus. Description of general economic and social conditions (1950) and analysis of labor conditions, problems, and prospects. D evelo p m en t. { I n Business Week, New York, No. 1121, November 15, 1952, pp. 78, 80, et seq.) By Seton Hayes Thompson. Washington, U. S. Department of the Interior, Fish and Wildlife Service, 1955. iv, 80 pp., illus. (Statistical Digest 35.) Includes statistical information on persons engaged and wages paid Hearing before Sub committee on Territories and Insular Affairs, Com mittee on Interior and Insular Affairs, United States Senate, 84th Cong., 1st sess., on S. 1650, a bill to authorize the Territory of Alaska to obtain advances from the Federal Unemployment Act, and for other purposes, April 26, 1955. Washington, 1955. iii, 42 pp. Contains current information on unemployment in Alaska. A la sk a U n e m p lo y m e n t F u n d L o a n s. V a n ish in g F r o n tie r : A P rog ress R ep o rt. Pre pared by William H. Hackett [for] Subcommittee on Territories and Insular Possessions, Committee on Interior and Insular Affairs, United States House of Representatives. Washington, 1951. v, 88 pp., maps. (Committee Print.) General information. Note especially Section II, Wages and Cost of Living. A la s k a ’ s A n n u a l R ep o rt o f G overnor o f A la sk a to S ecreta ry o f the In ter io r, F is ca l Y ea r E n d e d J u n e 3 0 , 1 9 5 4 . Wash ington, 1955. iv, 106 pp. General information. Note especially sections dealing with fisheries, labor, Alaska Native Service, social welfare. P u e rto R i c o ’ s In d u stria l R evolu tion . P u e rto R ic o ’ s “ O p era tion B o o tstr a p ” is B eg in n in g to P a y — Isla n d and In d u s tr y . { I n Modern Industry, New York, 21: 3, March 15, 1951, pp. 74-75, illus.) B oth E m p lo y m e n t P o s sib ilitie s in the A la sk a n F is h in g I n d u s t r y . By Fred W. Hipkins. Washington, U. S. Department of the Interior, Fish and Wildlife Service, 1955. 4 pp. (Fishery Leaflet 298.) Transmitted by United States to Secretary-General of United Nations pursuant to Article 73 (e) of the Charter. Prepared in Office of the Governor, Juneau. Annual. In fo r m a tio n on the T errito ry o f A la sk a . By Lewis Hines. { I n American Federationist, Washington, 57: 6, June 1950, pp. 28-29.) R ep o rt on P u e rto R ic o . 98 L i s t o f F is h er m e n 's and F is h S h orew orkers' U n io n s in the D ire c to r y o f L a b or O rga n iza tion s in the T erritory o f H a w a ii, Washington, U. S. Department of the Interior, Fish and Wildlife Service, September 1955. 7 pp. (Fishery Leaflet 293.) M arch 1 95 5 . Honolulu, Department of Labor and Industrial Relations, Bureau of Research and Sta tistics, 1955. 27 pp. (No. 27.) Washington, U. S. Department of the Interior, Office of Territories, 1952. xi, 170 pp., map, illus. General information. Note especially sections dealing with social welfare and employment opportunities. T h e E c o n o m y o f H a w a ii in 1 9 4 7 , W it h S p ecia l R eferen ce to W a g e a n d S a la ry P r o b le m s o f the A la sk a R o a d C o m m is sio n . *E m p lo y m e n t a nd P a y r o lls in H a w a ii, 1 9 5 4 . Honolulu, Department of Labor and Industrial Relations, Bureau of Employment Security, 1955. 32 pp. Data for industries covered by Hawaii employment security law. U n ited States, A la sk a , and H a w a ii. M i d -C e n t u r y A la sk a . By Edwin M. Fitch. Washington, U. S. Department of the Interior, Office of Territories, 1953. vii, 75 pp. NONOFFICIAL PUBLICATIONS L a n d o f O p p o r tu n ity — L im ite d . By Wilford J. Eiteman and Alice Boardman Smuts. { I n Economic Geography, Worcester, Mass., 27: 1, January 1951, pp. 33-42.) W a g es , W o r k in g C o n d itio n s, a nd In d u stria l R ela tion s. By James H. Shoemaker. Washington, U. S. Depart ment of Labor, Bureau of Labor Statistics, 1948. xii, 214 pp. (Bull. 926.) A la sk a , L a b or S itu a tion . Hearing before Committee on Labor and Public Welfare, United States Senate, 81st Cong., 1st sess., on S. 2216, a bill to authorize the President of the United States, under certain condi tions, to appoint boards of inquiry with power to make binding recommendations with respect to labor dis putes in trade between the continental United States and the Territory of Hawaii, and for other purposes, July 12, 1949. Washington, 1949. iii, 219 pp. H a w a iia n By Herbert H. Hilscher. Boston, Little, Brown & Co., 1950. x, 309 pp., illus. Rev. ed. Deals with the economic, social, and political scene in Alaska, 1950; background to labor situation. A la sk a N o w . By Ernest Gruening. { I n Scientific Monthly, Washington, 77: 1, July 1953, pp. 3-12.) A l a s k a : P ro g ress and P r o b le m s. Threshold o f A la sk a . By Elmer E. Rasmuson. { I n Scientific Monthly, Washington, 77: 1, July 1953, pp. 19-23.) o f H a w a ii. By Charles F. Schwartz. Wash ington, U. S. Department of Commerce, Office of Business Economics, 1953. v, 73 pp., maps, dia grams. (Supplement to Survey of Current Business.) In c o m e T h e F in a n c ia l N ew E ra fo r an Old R a c e : W ith A la sk a N a tiv e Transmitted by United States to Secretary-General of United Nations pursuant to Article 73 (e) of the Charter. Prepared by Governor of Hawaii in cooperation with Depart ment of the Interior. Washington. Annual. In fo rm a tio n on the T erritory o f H a w a ii. Service G u ida n ce, E s k im o s A r e B rid g in g the G a p to M o d e r n C iv iliza tio n . { I n Alaskan Reporter, Spenard, Alaska, 2: 7, July 1953, pp. 12-15, 27-29.) By Kirk H* Stone. { I n Geographical Review, New York, 42: 3, July 1952, pp. 384-404.) P o p u la tin g A l a s k a : T h e U n ited States P h a se. By Ernest Henry Gruening. New York, Random House, [1954]. 606 pp., maps, biblio graphical footnotes. Includes discussion of “ Alaska’s pending problems.” L is t o f F is h er m e n 's a nd F is h S h orew ork ers' U n io n s i n the U n ited Sta tes, A la sk a , a nd H a w a ii. Washington, U. S. Department of the Interior, Fish and Wildlife Service, September 1955. 7 pp. (Fishery Leaflet 293.) T h e State o f A la sk a . P rev a ilin g W a g e s a nd H o u r s o f E m p lo y e e s in the B a k in g I n d u s tr y , P ow er E a tin g a nd D r in k in g L a u n d ries a nd D ry E sta blish m en ts, C lea n in g and E sta blish m en ts , H a w a ii, A p r i l 1 9 5 4 • Honolulu, Depart ment of Labor and Industrial Relations, Bureau of Research and Statistics. (Bulls. 35, 36, 37.) Similar reports for other types of establishments have been published for earlier dates. H o n o lu lu , H a w a ii OFFICIAL PUBLICATIONS A b s tr a c ts : A g ricu ltu ra l, In d u stria l and E c o n o m ic R esearch, T errito ry o f H a w a ii, 1 9 8 0 - 1 9 5 2 . Honolulu, Industrial Research Advisory Council, [1953], xxiv, 893 pp. Section I X deals with labor. A n n u a l R ep o rt o f D ep a rtm en t o f L a b or and In d u stria l R e lation s. * 1 9 5 4 • [Honolulu], Commission of Labor and Industrial Relations, [1955?]. 8 pp. D ecem ber NONOFFICIAL PUBLICATIONS Honolulu. * A n n u a l R ep o rt o f G overnor o f H a w a ii to Secreta ry o f the In ter io r. S u r v ey o f W a g es P a id , b y I n d u s tr y , T errito ry o f H a w a ii, Washington. By F. J. Taylor. { I n Reader’s Digest, Pleasantville, N. Y., 65, December 1954, pp. 115-118.) B illio n -D o lla r R a in b o w . 99 * A D ig est o f P r o p o s a ls f o r C om batting U n e m p lo ym e n t in * M u ltip le * O rga n ized L a b o r in H a w a ii. By Robert M. Kamins. Honolulu, Univer sity of Hawaii, Legislative Reference Bureau, 1955. 52 pp., bibliography. (Report 1, 1955.) H a w a ii. * By Daniel W. Tuttle, Jr. Honolulu, University of Hawaii, Legislative Reference Bureau, 1952. 60 pp., charts. (Report 3, 1952.) Gives comparative data for Hawaii and the mainland on salaries and fringe benefits of public employees. G o vern m en t Salaries in H a w a ii. I n d u s t r y U n io n is m in H a w a ii. By Philip Brooks. New York, Eagle Enterprises, 1952. (D oc toral dissertation, Graduate School of Business, Columbia University.) By Mark Perlman. { I n Labor Law Journal, Chicago, 3: 4, April 1952, pp. 263-275.) [Honolulu], Bank o f Hawaii, Department of Business Research. [No. 1], T h e E c o n o m y o f H a w a ii T o d a y : A P r e lim in a r y [R eports on the E c o n o m y o f H a w a ii.] E m p lo y m e n t in H a w a ii. By Robert M. Kamins, aided by Enid Beaumont. Honolulu, University of Hawaii, Legislative Reference Bureau, 1954. 25 pp. (Report 3, 1954.) S tu d y o f ou r P r es en t E c o n o m ic P o s itio n w ith E s t i G overnm ental m ates o f In c o m e a nd E x p e n d itu r e a nd a B r i e f R e v ie w of M ea su res ju s tm e n t. [No. 2], * By Paul F. Brissenden. (.I n Labor Law Journal, Chicago, 4: 4, April 1953, pp. 231-279, illus.) T h e Great H a w a iia n D o c k Strike. H a w a ii B u ild s an Sam . Econom y on S u g ar, C o m m u n ity r charts. [No. 4], M e n , Isla n d port By Mark Perlman and John B. Ferguson. Honolulu, University of Hawaii, Industrial Relations Center, 1952. * M ed ic a l Care in the T errito ry o f H a w a ii : R ep o rt o f a S u r v ey o f M e d ic a l Services in the Sugar, P in ea p p le , and M is c ella n e o u s In d u strie s. By E. Richard Weinerman, M.D. Honolulu, International Longshoremen’s and Warehousemen’s Union, Regional Office, 1952. 183 pp., bibliography, maps. T ra d e a nd C reate H. S tron g Shoemaker* Land R eso u rces a nd to [1951?] N a tio n . J obs in In crea sed on * S ocia l * S p ecia l 12 pp., H a w a ii : G ea rin g P ro d u ctio n , [1952.] F u ll 12 pp., D o lla rs in H a w a ii : A M i d - Y e a r R e W ea lth , In com e a nd G rowth [1953.] 31 pp. [No. 6], Isla n d s at W o r k : T h e E c o n o m y A c tio n . 1954. 56 pp., charts, illus. I n d u s t r y , B a stio n o f D e fe n se , and T ro p ic P la yg ro u n d . T rade U n io n is m , and the C om p etitive M e n a c e in 25 pp. S p e n d in g , S a vin g in H a w a ii : B u ild in g a charts. [No. 5], W o r k in g B le n d H a r m o n io u s ly in H a w a ii ’s M e tr o p o lis , C enter o f H a w a ii. James E m p lo y m e n t , D ep en d a b le In c o m e . H o n o lu lu , M id -O c e a n C a p ita l: Oriental and W ester n W a y s L a b or, R ea d 1950. a B a la n ced E c o n o m y f o r D ep en d a ble In c o m e , a S ta ble m ent W o r k in g Together in H a w a ii. [Honolulu], Bank of Hawaii, Department of Business Research, 1955. 54 pp. * By E m p lo y m e n t. 1950. 40 pp. [No. 3], E a r n in g , H a w a ii— G ro w in g I s la n d s : M a n a g e m e n t, L ab or and G overn R elation s i n H a w a ii. By Arnold L. Wills. Honolulu, University of Hawaii, Industrial Relations Center, 1955. 62 pp., bibliography. P o s tw a r O p p ortu n ities f o r H a w a ii to P ro d u ce M o r e a n d M ore P in ea p p le s — and L a b o r -M a n a g em en t A ch iev e E x p a n s io n to B a la n ce M a in la n d {In By Frederick Simpich, Jr. { I n National Geographic Magazine, Washington, 105: 5, May 1954, pp. 577624.) to L iv e B etter : A R e p o rt on the P o ssib ilitie s o f E c o n o m ic Business Week, New York, No. 1264, November 21, 1953, pp. 90-94, 96, 98.) U ncle N e c e ss a r y By James H. Shoemaker. in H a w a ii . o f H a w a ii i n P r o c e ss in H a w a ii. Honolulu, University of Hawaii, Sociology Club, 1951. (Vol. 15.) Includes the following papers of labor interest: Hawaii’s Industrial Revolution, by Bernhard L. Hormann; The ILW U as a Force for Interracial Unity in Hawaii, by David E. Thompson; Labor— An Undercurrent of Hawaiian Social History, by C. J. Henderson. P u b lic a tio n s. Honolulu, Hawaii Employers Council, Research Department. Studies of unemployment insurance, wages, compensa tion of office workers, etc., in Hawaii. L on g sh o re, T h e “ T hree C la u ses ” i n H a w a iia n L a b or A g reem en ts. By P. F. Brissenden. { I n Political Science Quarterly, New York, 68: 1, March 1953, pp. 89-108.) U. S. GOVERNMENT PRINTING OFFICE: 1956