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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
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39
40

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43
43
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46
46
47

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45
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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______________________________________________




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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

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,

April
April
April
April

1,150,000
1,293,000
1,275,000
1,327,000

1940_________________________
1950_________________________
1954_________________________
1955_________________________

Labor
force

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

Population of
labor-force age

Certain im p ortan t steps were taken at

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
0 1952 prices)
in

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 .1
0
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

greater

than

average

of

am oun ted

individuals)

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

H
e

H
e

H
e

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

N um ber o f
migrants

la r e n c e

Se n i o r

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,

and

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 ­

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.1
0

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 ,” 1 is
1

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,

1 For discussion, see p. 3.
1

“ 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.7
8

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 .1
0

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 .1
1

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 1 *of the 22 decrees now in force
2
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 .1
3

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 1
4
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 1 prohibits
8

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 .1
5

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 .1 2 T h is law
9
0

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 .1
6

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 ,1 an
7

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.2
1

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.2
2

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 ” ; 2 (2)
3

p rohibit

T o com pel

issuance of injunctions in lab or d isputes; 2 (3)
4

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 ;2 (4) m ak e u nem ploym ent com pensation
5

evidence needed in cases under in v e s tig a tio n ;2
8

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 ),2
7

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.
2 This authority was upheld in Sierra v. Cuevas, 72 P . R . R . 167 (Feb. 13,,
8
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.3
1

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 .3
2

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 .3
3
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).
3 Section 13 of Act 379 of M a y 15, 1948.
1
3 In cases arising under the Fair Labor Standards Act, subsequent to
2
approval of the Portal-to-Portal Act (M a y 14, 1947), the defense of good
faith may be raised by an employer.
8 Act N o. 402 of M ay 12, 1950.
3
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.3
4
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* rose from
8
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

cents,

the

construction

1 9 5 4 -5 5 ,

In

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 s|
?H

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... ________________________

Hourly mini­
m um (or range
of minimum)
wage rates
(in cents)

M ar. 1943.............
Apr. 1943_______
____ do____ ______

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 .* T h e act em pow ers the M in im u m
6
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

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

Juneau.......... ...................
Anchorage____________
Fairbanks_____________

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

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

dependence upon the U n ited States.

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).
f Includes value of sand, gravel, and building stone. Total from Bureau of
i
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
Low (January!)

Average 1

Peak (August 1)

101,000
112,000
123,200
142,000
151,900

Year

123,900
140,900
162, 500
174,300
174, 400

1950..................... .........
1951..................... .........
1952......... - ............... 1953............................. 1954......................... —

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 ' 3 '54
4

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,
a n d

W a g e -B o a rd

appears

E m p lo y e e s

Classified em ployees, whose hours and condi­

to

guises.

C la s s if ie d

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

44

28

16

15

9
8
3
8
7

28

96.6

2 25.0
3 100.0

8
7

29

626
26
10
20

93.8

9
8
8

90.8

63.6

16

59

39

47

65

602

40

1 14.3

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

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

of

reversed.

In another instance, a discharge

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 .1
1

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

1 Annual and Sick Leave Act of 1951, as amended (65 Stat. 679-683).
0
1 H . R . 3820 (84th Cong.), introduced February 8, 1955; referred to the
1
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.1
0

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 T er fe e c tog ldb in “c a s ” m a t th t it w sn g e siz a da
h e r ne o e g o r e e n a
a ugt e n
little p r g w s n t u e p c d
ilfe a e a o n x e te .

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........ ........... .......

1.50-1.75
hr.
1.50-1.75
hr.

2.45-2.80 h r..

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.................

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_________

4 .2 5 ...

3.02_________

2.54 4. 25_______

3.84.

4.035
3.14_________

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___

4.20

3.11
2.75

4.20
3.50
3.00-3.50

3.84

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_________

3.525
2~35-2~75

3.72

1 1954 rates.
2 Rate for cannery laborers is $1.72 an hour.




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_________

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.

com pensation

General for action.

problem s

were

referred

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

which

workers,

and bridge and building em ployees.

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

The N L R B

held

fishermen were independent con­

tim es been true in the p ast th at trade union de­

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

general m anager o f the railroad.

to

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

4
1

’
42

UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS

’
43

‘
44

1945

’
46

’
48

’
49

1950 ’1
5

’
52

’
53

1954

Includ ing purchases
and contracts

Sources: Civilian and Military Payrolls— ( ) 1939-1952, Income of Hawaii,
1
U. S. Department of Commerce, Office of Business Economics, 1953; ( 1953,
2)
mimeographed supplement to Income of Hawaii, op. c t , issued in August
i.




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

or less,

the

p ercent; if

10

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 itJ organization lost a strike
s

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.
1
0 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.1
1
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.” 1
3
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.1
2

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.* *
1
4

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 1
6
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.1
6
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

a
t,

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

*

H a w a ii : G ea rin g

[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

in

H a w a ii .

o f H a w a ii i n

S ocia l

*

12 pp.,

P ro d u ctio n ,

[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.

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.
S p ecia l

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