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L. B. Schwellenbach, Secretary
Isador Lubin, Commissioner (on leave)
A. F. Hinrichs, Acting Commissioner


Union Agreements
in the
Tobacco Industry
January 1945

B ulletin 7v[o. 847

For sale by the Superintendent o f Documents, U. S. Government Printing Office
Washington 25, D. C. - Price 5 cents


Letter of Transmittal
U n it e d S t a t e s D e p a r t m e n t op L a b o r ,
B u r e a u op L a b o r S t a t is t ic s ,

Washington, D. C., October 1,1945.
The S e c r e t a r y op L a b o r :
I have the honor to transmit herewith a report on union agreements in the
tobacco industry. The tobacco industry as defined by the Census of Manu­
factures includes establishments engaged in the manufacture of cigarettes,
cigars, smoking and chewing tobacco, and snuff, and which on the same premises
may sort, dry, cure, or stem tobacco. For the purpose of this report, the industry
is divided into two parts: The manufacture of cigarettes, smoking and chewing
tobaccc, and snuff; and the manufacture of all types of cigars.
Approximately 90 percent of the wage earners in the cigarette, smoking and
chewing tobacco, and snuff branch, and about 50 percent of those in the cigar
branch, are employed in plants which have negotiated agreements with national
or international unions. This bulletin gives an analysis of 12 agreements covering
nearly 80 percent of the workers in the former branch and 16 agreements covering
nearly 70 percent of those in the latter branch who were under agreement at
the beginning of 1945.
This report was prepared by Eleanor T. Royer under the general supervision
of Florence Peterson.
A . F. H in r ic h s , Acting Commissioner.

Secretary of Labor.



P art I.— M anufacture of Cigarettes, Smoking and C hewing
T obacco, and Snuff
P age

General characteristics of the industry----------------------------------------------------Extent of union organization____________________________________________
Coverage and duration of agreements____________________________________
Union status:
Type of recognition________________________________________________
Management prerogatives__________________________________________
Union label________________________________________________________
Wage provisions_______________________________________________________
Pay for waiting time_______________________________________________
Shift provisions___________________________________________________
Transfer rates_____________________________________________________
Report pay_______________________________________________________
Interim wage adjustments_________________________________________
Miscellaneous pay provisions—_____________________________________
Hours, overtime, and week-end work___________________________________
Lunch and rest periods--__________________________________________
Vacations and holidays________________________________________
Leave provisions:
Leave for union business---------------------------------------------------------------Leave for personal reasons_________________________________________
Seniority rules-------------------------------------------------------------------------------------Senority for special groups-------------------------------Loss of seniority___________________________________________________
Lay-off and rehiring___________________________________________________
Lay-off notice_____________________________________________________
Work sharing_____________________________________________________
Promotion and transfer________________________________________________
Military service and war work__________________________________________
Health and safety--------------------------------------------------------------------------------Working rules__________________________________________________________
Adjustment of disputes________________________________________________
Grievance machinery______________________________________________
Abritration _ ___________________________________________________________
Strikes and lock-outs___________________________________________________


P art II.— C igar M anufacture
General characteristics of the industry__________________________________
History of unions and collective bargaining_____________________________
Extent of union organization___________________________________________
Coverage and duration of agreements___________________________________
Union status:
Membership requirements_________________________________________
Activities affecting union status____________________________________
Union label_______________________________________________________
Wage provisions:
Minimum rates____________________________________________________
Dead time pay____________________________________________________
Incentive wages___________________________________________________
Interim wage adjustments______________________________________
Transfer rates_____________________________________________________
Minimum call and call-back pay____ _____





II.— C i g a r



— Continued

Hours, overtime, and week-end work___________________________________
Paid vacations and sick leave:
Annual paid vacations_____________________________________________
Sick leave_________________________________________________________
Leave of absence:
Leave for union business___________________________________________
Leave for personal reasons_________________________________________
Seniority rules-------------------------------------------------------------------------------------Seniority for special groups________________________________________
Loss of seniority___________________________________________________
Lay-off and rehiring-----------------------------------------------------------------------------Work sharing_____________________________________________________
Promotion and transfer________________________________________________
Military service-----------------------------------------------------------------------------------Learners and apprentices_______________________________________________
Health and safety--------------------------------------------------------------------------------Adjustment of disputes________________________________________________
Grievance machinery______________________________________________
Discharge--------------------------------------------------------------------------------------------Strikes and lock-outs______________________________________________


Bulletin T^o. 847 o f the
U nited States Bureau o f Labor Statistics
Union Agreements in the Tobacco Industry in Effect
January 1 9 4 5
P art I.— Manufacture of Cigarettes, Smoking and Chewing
Tobacco, and Snuff
General Characteristics o f the Industry

Cigarette manufacturing is characterized by large-scale production
and a high degree of mechanization. The 1939 Census of Manufac­
tures reports only 35 cigarette manufacturing establishments, with
3 companies producing almost three-fourths of the total United States
output. Over 95 percent of the employees engaged in manufacturing
cigarettes were in plants employing 1,000 or more workers.
New York was the leading State in cigarette manufacture before
1915, but owing to the economic advantage of locating near the site
of tobacco markets, the industry has shifted in the past 2 decades; in
1939 virtually all of the large plants and 80 percent of the workers
were in North Carolina and Virginia. A majority of the plants (19)
were located outside these two States, but almost all of them employed
relatively few workers, New Jersey and Kentucky being the only
other States reporting any appreciable employment.
The manufacture of chewing and smoking tobacco and snuff is not
so highly concentrated as is the manufacture of cigarettes. In 1939,
132 establishments were reported in this branch of the industry, with
about 35 percent of the workers in plants employing less than 250
workers and nearly 60 percent in plants with less than 500 workers
each. Snuff manufacturing is as highly mechanized as cigarettes.
Although the manufacture of chewing and smoking tobacco is only
slightly less mechanized, there are still many small factories in which
little machinery is used.
Male employment predominates slightly. In 1940, male workers
constituted about 50 percent of employment in the cigarette branch,
52 percent in smoking tobacco, 53 percent in chewing tobacco, and
62 percent in snuff.1
During the decade 1934-44 there was an increase in employment of
about 50 percent in the cigarette branch—from about 22,000 to more
than 34,000 wage earners. During the same period employment in
the chewing and smoking tobacco and snuff branch declined b y about
one-sixth—from over 10,000 to slightly less than 8,500.
Extent o f Union Organization

Much of the organization in this industry has taken place within
the last decade. At the close of the year 1944 approximately 90 pert Earnings and Hours in the Cigarette, Chewing and Smoking Tobacco, and Snuff Industry, 1940. (V . S.
Bureau of Labor Statistics.) Mimeographed.


cent of the 42,800 workers employed in the industry worked in plants
which had agreements with national or international unions. Prac­
tically all of the cigarette companies are organized, the unorganized
plants being small establishments in the smoking and chewing tobacco
and snuff branch of the tobacco industry.
Agreements negotiated by the Tobacco Workers’ International
Union (AFL), organized in the 1890’s, cover almost three-fourths of
the organized workers.
The Food, Tobacco, Agricultural and Allied Workers Union of
America (CIO), until recently, confined its organizing efforts to the
leaf processing and stemming plants. In 1942 the union secured an
agreement with the P. Lorillard plant at Middletown, Ohio, and in
1944 signed an agreement with the R. J. Reynolds Co. These two
companies cover slightly more than one-fourth of the organized
workers in the industry.
Coverage and Duration o f Agreements

The discussion in Part I is based on an analysis of 12 agreements
in effect at the beginning of 1945, covering about 32,500 workers and
representing about 80 percent of the total workers under agreement.2
Ten of the agreements were originally negotiated for 1 year and four
of these are renewable automatically for additional yearly periods
unless a 30- or 60-day notice of intention to change or terminate has
been filed by either party. A fifth agreement is automatically
renewable for an indefinite period in the absence of notice, and exten­
sion of another agreement is subject to negotiation 30 days prior to
the expiration date. The four remaining contain no provision for re­
newal. Two of these, however, allow either party to request amend­
ments or alterations on 30 days’ written notice.
One agreement was negotiated for a 3-year period and was renew­
able automatically for yearly periods thereafter in the absence of
notice; and the twelfth agreement was made in 1943 for the duration
of the war, plus 6 months.
Agreements in the industry usually cover maintenance and plantprotection employees as well as production workers. However,
certain groups such as executives; supervisory, office, and clerical
* Companies covered in this report and the unions with which the agreements have been made are listed
American Tobacco C o., Reidsville and Durham, Tobacco Workers’ International Union (A F L ).
N . C ., and R ichm ond, Va.*
Tobacco Workers’ International Union (A F L ).
American Tobacco C o., Louisville, K y _________
Brown & Williamson Tobacco Co., Louisville, Tobacco W orkers’ International Union (A F L ).
Liggett & M yers Tobacco C o., Richm ond, Va., Tobacco Workers’ International Union (A F L ).
and Durham, N . C.
Liggett & M yers Tobacco C o., St. Louis. M o ___ Tobacco W orkers’ International Union (A F L ).
P. Lorillard, Jersey C ity, N . J., Danville, Va., Tobacco W orkers’ International Union (A F L ).
and Louisville, K y .f
P. Lorillard, M iddletown, Ohio.............................. Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
Philip Morris & Co., Richm ond, V a ....................... Tobacco
InternationalUnion (A F L ).
Penn Tobacco Co., Wilkes-Barre, P a....................... Tobacco
InternationalUnion (A F L ).
Pinkerton Tobacco C o., Toledo, Ohio..................... Tobacco
W orkers’
InternationalUnion (A F L ).
R . J. Reynolds Tobacco Co., Winston-Salem, Food. T obacco, Agricultural and Allied Workers
N. C.
Union of America (C IO ).
Scotten-Dillon Co., Detroit, M ich .......................... Tobacco W orkers’ International Union (A F L ).
♦This agreement also covers the American Suppliers, Inc., at Reidsville and Durham, N . C ., and
Richm ond, Va., and the American Cigarette & Cigar Co., Durham, N . C.
fT his agreement also covers the com pany’s cigar-making plant at Richm ond, Va., and is signed b y
the Cigar Makers International Union for that plant; several craft unions covering specific groups of
workers have also signed this agreement.

employees; and foremen are usually excluded from the scope of the
agreements. Seasonal employees who work in green leaf tobacco
are also excluded in two agreements.
Union Status

Type of recognition.—All except two agreements include provisions
regarding union membership; one agreement with a small company
provides a closed shop and requires that all employees be hired
through the union. A union shop under which employees must
become union members within a stated period after hiring is provided
in five agreements covering almost one-fourth of the workers, among
them the two Liggett & Myers agreements and the Brown & William­
son agreement. Maintenance-of-membership clauses are included in
four agreements covering over two-thirds of the workers. Among
this group are the two American Tobacco Co. agreements, and those
with K. J. Keynolds Tobacco Co. and Philip Morris & Co. The
American interstate agreement and the Philip Morris agreement fur­
ther provide that before the expiration of the probationary period
each new employee shall meet with a union and a company represent­
ative to discuss union affiliation and company policies.
• Check-off.— Check-off of union dues by the company is specified in
10 agreements covering over 80 percent of the workers. In one agree­
ment with a small company, individual employees must authorize
deductions from their pay for union dues, but once authorized the
deduction cannot be revoked. In the other nine, dues are checked off
automatically. One agreement allows the company to keep 5 per­
cent and another 2 percent of the money collected in payment for
the service rendered. Five of these agreements specify a maximum
amount of dues which may be checked off, ranging from $1 to $1.50
per month. One allows, in addition to the regular monthly check-off,
a special assessment each year of not more than $1.
Four of the agreements containing the check-off provision are
union-shop agreements, and four have maintenance-of-membership
clauses; the other two agreements have no membership requirements.
Management prerogatives.— Management specifically reserves the
right in three agreements to operate the business, and to select and
direct the working forces including, but not limiting itself to, func­
tions such as promotions and demotions, transfers and lay-offs, and
suspensions and discharges. Union activity, such as solicitation
of members on company time, is prohibited in several agreements;
the companies, however, specifically agree not to discriminate against
any employee because of presenting a grievance or discharging his
duties as a union representative.
Two agreements grant the union the right to use a bulletin board
within the plant, although one specifies that notices to be posted
must have managements approval.
Union label.—In the Brown & Williamson agreement, and in one
other covering a small company, the union agrees to furnish union
labels for all products manufactured. The Brown & Williamson Co.
also agrees to use union-made materials, such as boxes, labels, paste,
etc., as much as possible.

Wage Provisions

These agreements contain very little information about specific
wage rates and none refer to incentive systems. Four agreements,
three of them with large companies, merely state that it is the policy
of the company that its wage scale shall "be as high as the scale for
comparable work in other tobacco factories.
One agreement with a small company specifies plant-wide minimum
wage rates of 78 cents an hour for male employees, 68 cents for female
machine workers, and 58 cents for other female workers. One
agreement covering a large company contains detailed occupational
listings by department. The lowest rates listed are 58 cents per
hour for women and 70 cents per hour for men. Male “ helpers,”
however, start at 65 cents per hour and are raised to 70 cents after 6
months’ service. Since both these agreements (as well as two others)
prohibit wage differentials based on sex alone, it may be assumed
that these specified differences in minimum rates reflect different
assignments of work to men and women. None of the tobacco
agreements mention differentials for disabled and older workers or for
hazardous or onerous work.
One agreement, which is to run for the duration of the war and
6 months, stipulates that upon the expiration of the agreement all
wage rates, with the exception of the starting rates of men and women
and the schedule of automatic rate increases for men, shall be reduced
by 4 percent.
Pay for waiting time.— All but two agreements with small companies
stipulate that employees shall receive their regular rate of pay if
required to wait in the plant an “ unreasonable” length of time when
machinery break-down or other unavoidable circumstances prevent
them from continuing work. However, only one agreement defines
the term “ unreasonable” — meaning any delay of 30 minutes or more.
Shift provisions.— Night work is uncommon in the tobacco industry.
Only four agreements make any reference to night shifts, and two of
these, the American interstate and the R. J. Reynolds agreements,
require night shift bonuses— 8 percent above the regular hourly
rate in American and 4 cents per hour in Reynolds.3
Transfer rates.— Several agreements protect an employee’s earnings
when he is transferred temporarily to another job by specifying that
he is to continue to receive the rate of the job from which he was
transferred. A few, however, specify that he shall receive the pre­
vailing rate of the job to which he is transferred.
Eleven of the agreements make provisions for permanent transfers;
10 of these indicate that the employee is to receive the rate of the job
to which he is transferred, and one requires the employee to be on the
job for 4 weeks before the new rate becomes effective. The other
agreement states that an employee transferred permanently (for more
than 70 days) to a lower-rated job receives his old rate of pay or the
maximum of the rate range of the lower-rated new job, whichever is
lower; if transferred to a higher-rated job, he receives not less than
his regular rate or the minimum rate of the new job classification,
whichever is higher.
3 Eight percent bonus in American interstate agreement, subject to approval of the National W ar Labor

Report pay.— Two agreements require payment for a minimum
number of hours to employees who report for work at their usual
hour without having been notified sufficiently in advance that there
is no work. The P. Lorillard agreement at Middletown, Ohio, grants
4 hours’ reporting pay, and the Reynolds agreement stipulates 2
hours’ pay “ except in case of inability to operate beyond the control
of the management.”
One agreement, with the Brown & Williamson Tobacco Co., pro­
tects workers who may be asked to report for work before their
scheduled time by requiring that they get time and a half pay for all
work performed before their regular starting time.
Interim wage adjustments.— Two of the agreements, both of which
were made for a 1-year period subject to renewal, allow either party
to reopen the question of wage adjustments in the event of change in
the “ Little Steel” formula or because of any other “ unusual circum­
stance.” The P. Lorillard master agreement, which was negotiated
for a 3-year period, allowed either party 6 months after the signing of
the agreement to reopen the wage question for the Louisville plant
only. Four other agreements imply the possibility of interim ad­
justments by providing that there shall be no reduction in the present
scales during the life of the agreement.
Some provision for the adjustment of individual wage rates during
the term of the agreement is made in five agreements: Four specify
that wages shall be adjusted if there is an increase in machine speed
or work load, while one merely states that the company agrees to
continue its custom of making adjustments during the year.
Miscellaneous pay provisions.— Half of the agreements require that
the time spent in cleaning machines be included at the regular rates
of pay. One agreement specifies that an employee injured on the
job is paid for the rest of the day on which the injury occurred. One
agreement covering a small company provides a $25 war bond Christ­
mas bonus to each person in the employ of the company since August.
None of the agreements provide for a guaranteed weekly or annual
wage or dismissal or severance pay.


H ours9 Overtime and W eek-E nd Work

All the agreements provide time and a half the regular rate for time
worked in excess of an 8-hour day or 40-hour week. Certain occupa­
tions, such as watchmen, power-plant employees, and other mainte­
nance employees are not included under the daily hours provisions and
the week-end and holiday premium rates in about three-fourths of the
agreements.4 Five agreements which include seasonal workers specif­
ically exempt them from all hours, overtime, and holiday rate provi­
sions under the seasonal exemptions provided by the Wage and Hour
Law.5 The Reynolds agreement does not define the workweek; all
the others name a Monday-through-Friday week, one further defining
the workweek for the purpose of compliance with Executive Order
9240 as being 7 days from midnight Sunday to the following midnight
4 Under the Fair Labor Standards A ct (Wage and Hour Law) time and a half must be paid for work over
40 hours a week, but not after 8 hours a day. The Walsh-Healey (Public Contracts) A ct requires that all
employees be paid time and a half after 8 hours per day. One agreement specifically mentions only daily
overtime rates; but weekly overtime rates are established b y the FLSA.
• Companies employing seasonal workers to handle green leaf tobacco m ay take advantage of the hour
exemption under section 7-b-3, which allows limited exemption from the hour provisions of 12 hours per day
and 56 per week for 14 weeks to persons engaged in any industry found b y the Administrator to be of a
seasonal nature.


Sunday.6 One agreement requires time and a half pay for all work
performed on the sixth day of the regular workweek, and two others
require payment of double rates for Saturday work if more than 4
hours’ work is done.
Nine agreements require payment of double rates for Sunday work,
one of these containing the qualifications “ except where changed by
Presidential or other Government official order.” Two specifically
provide double time for Sunday work only if it is the seventh consecuive day in the workweek.
Lunch and rest periods.— None of the agreements studied in this
industry provide for paid lunch periods and only one mentions rest
periods. Under the two American Tobacco agreements the company
may not require any employee to take extra time for lunch beyond
the regular schedule for his job. Two other agreements prohibit the
operation of machines during the lunch hour except for continuous
process work or during an emergency. The Reynolds agreement
specifies a 5-minute rest period each morning and afternoon for all
Vacations and H olidays

Paid vacations for regular employees who meet certain qualifica­
tions are established under all except three of the agreements ana­
lyzed. These three agreements grant all employees with a year’s
continuous service a bonus of 2 weeks’ pay at the end of the year.
A single vacation period after a qualifying period of service is pro­
vided by six agreements. Three of these, covering about one-eighth
of the workers, among them the Philip Morris and the P. Lorillard
interstate agreements, grant 2 weeks’ vacation after 1 year’s service.
The three others grant 1 week's vacation; one after only 6 months'
employment and the other two after a year. One of the latter, the
Brown & Williamson agreement, grants in addition a Christmas bonus
equal to 40 hour’s pay.
Graduated plans are included in three agreements covering approxi­
mately 60 percent of the workers: the American interstate agreement
provides 1 week’s vacation after 6 months’ service and 2 weeks after
1 year;7 the Reynolds and the P. Lorillard (Middletown, Ohio) agree­
ments provide 1 w
reek after 1 year and 2 weeks after 5 years, respec­
The Reynolds agreement grants to seasonal employees who work
1,000 hours, one-half week’s vacation, or 20 hours’ pay, and if the em­
ployee returns the next season and works 1,000 hours he is granted
1 week, or 40 hours’ pay.
Several of the agreements which grant paid vacations specify that
in addition to the minimum service requirement, the employee must
have completed specified work requirements during the year— for
example, 75 percent of the working days; 36 weeks. One requires
that the employee must not have been absent because of illness for
more than 13 consecutive weeks before the vacation date, and one
• Executive Order 9240 regulates pay for week-end and holiday work “ on all work relating to the prosecu­
tion of the war” for the duration o f the war emergency. It prohibits premium pay for Saturday and Sunday
work, as such, and makes the payment of double time for the seventh consecutive day of a regularly sched­
uled workweek mandatory. Paym ent of a premium rate on the sixth day is permitted if it has been
paid previously either on the sixth day or on Saturday. Tim e and a half compensation is required for all
work performed on six specified holidays. If any of these companies were doing “ war w ork” the order
superseded agreement provisions not in accordance with it.
f One week's vacation after 6 months' service, subject to approval of the National W ar Labor Board.


requires that the employee must be on the active pay roll on June 30
of the calendar year in which the vacation occurs. In a few of these,
if the employee does not meet the specific requirements he receives
a proportionate part of the vacation pay.
A week’s vacation pay is generally calculated at 40 times the
employee’s average hourly earnings; in one case pay is one fiftieth of
his previous year’s wages. Compensatory pay in lieu of vacations is
permitted at the discretion of management under three agreements.
Under most of the agreements the company reserves the right
to designate the time of the vacation period, and those which grant
2 weeks’ vacation usually stipulate that 1 week be taken during the
summer and the other during the winter, several of them specifying
Christmas week. One agreement specifies that the summer vacation
schedule shall be based on seniority.
The R. J. Reynolds agreement and one other prohibit cumulation
of vacation periods; under the former agreement, however, employees
may substitute a week of temporary lay-off or illness for the week of
vacation, if it is other than the Christmas vacation.
Holidays.— None of the agreements analyzed grant pay for holidays
not worked, but all establish premium rates for work done on specified
holidays. Nine agreements name six holidays, two name five, and
one which was negotiated since Executive Order 9240 specifies eight.
One agreement which specifies six holidays calls for an extra holiday
when Executive Order 9240 is no longer in effect.
The nine agreements which require double time for Sunday work
also require double time for holiday work and the other three state
that in order to conform to the Executive Order time and a half shall
be paid on six specified holidays.
Leave Provisions

Leave fo r union business.— Four agreements provide leave of absence
for union business, one of them specifying that the employee’s seniority
is to be retained but not accumulated, and the others stating merely
that the employees shall suffer no “ loss of seniority.” The Reynolds
Co. agreement and one other specify a maximum of 1 year’s leave of
absence, and the former agreement limits the number of employees
who may be absent for union business to 7 employees, for a union
convention to 25 employees, and for a union conference to the number
of employees which will cause no more than an aggregate of 25 mandays’ absence in any 1 year.
Leave fo r personal reasons.— None of the agreements provide for
paid sick leave, but six indicate that an employee will not lose seniority
because of absence caused by illness. One of these limits the time
allowed to 3 months with extensions if necessany, and another allows
a maximum of 1 year for maternity leave. Three agreements require
that the employee submit a doctor’s certificate every 2 weeks during
an extended illness. Another states that an employee must have a
certificate from the company’s medical department before he returns to
work, with the reservation that the employee cannot be required to
resume work if his personal physician certifies that he is unfit.
Two agreements indicate that leave of absence will be granted for
other personal reasons but do not specify the length of absence allowed
or the seniority status.

Seniority Rules

Seniority rights, granting preferential treatment based on length of
service, are found in all the agreements studied. In most cases em­
ployees do not acquire these rights until they have completed a pro­
bationary period, ranging from 30 days to a year—most commonly
3 months. Seniority rights, once acquired, usually apply to lay­
offs, rehiring, and promotions, and in one case to the choice of shifts.
Seniority lists for each department must be posted in a conspicuous
place available for inspection at any time, under the terms of three
According to all the agreements the plant is the ultimate unit to
which accrual of seniority applies, although five of them provide a
combination of departmental and plant-wide seniority with respect
to transfers; one of these five defines seniority for the purpose of lay-off
as length of service in the plant, and for the purpose of promotion
as length of service in the department.
Seniority for special groups.—Under three agreements, seasonal
employees who handle leaf tobacco are excluded from all seniority
rights, except that they will be given preference over new applicants
for regular employment if they are qualified.
Under the Reynolds and the P. Lorillard (Middletown, Ohio)
agreements, shop stewards are put at the top of the seniority lists in
their respective departments so that they will be the last laid off and
the first rehired.
Loss of seniority.— Seniority is usually lost by voluntary quitting,
discharge, failure to return to work after a lay-off when requested
by the company to report, or absence of several days (usually 7) with­
out notifying the company. Loss of seniority is the penalty under
the Reynolds agreement for the fourth unexcused absence of 1 day or
more. In one agreement seniority is also broken by more than 6
months’ sick leave in any 1 year and in another by more than 30 days’
absence during the year for personal reasons other than illness.
Three agreements provide for the retention of seniority rights for a
limited period during enforced lay-off, 6 months in two cases, and 1
year in one case.
L a y-O ff and Rehiring

In the selection of workers for lay-off and rehiring, seniority is the
determining factor in all except the Reynolds agreement, which indi­
cates that lay-offs and reemployment will be determined by seniority
if other qualifications such as skill, efficiency, and responsibility are
equal. The P. Lorillard (Middletown, Ohio) agreement provides
that the company will pay for all time lost because of mistakes made
by the company in the lay-off or recall of employees on the seniority
list provided the mistake is reported within 48 hours.
The American Tobacco Co. agreements protect a worker laid off
for a short period by requiring that an employee laid off and reemployed
within 6 months will be given his previous job at his previous rate of
pay if a vacancy exists. If there is no vacancy, he is to be paid the
rate of pay of the previous job for the job to which he is assigned.
Lay-off notice.—According to three agreements the company agrees
to give employees advance notice of lay-off: one agreement specifically

requires 24 hours' notice if possible, and the two others merely state
that as much notice as possible be given.
Work sharing.— Reference to work sharing is found in only one
agreement, which provides that if lay-off becomes necessary in a
department, the work requirements will be given consideration and,
if possible, the hours of work will be reduced in the department.
Prom otion and Transfer

Competence is the primary consideration in making promotions in
almost all the agreements, with seniority applicable only where the
competence and ability of the applicants are approximately equal.
In two agreements, however, the employee with the longest service
is given a trial period on the job to determine his competence. Under
four agreements the management and the shop committee, and under
one the superintendent, judges the applicants' competence. Several
agreements specifically state that the management reserves the right
to decide promotions to supervisory positions without regard to
The five agreements which establish a combination of plant and
departmental seniority mention the effect of a transfer on an employ­
ee's seniority status. One states that an employee who transfers to
another department at his own request, loses his accumulated depart­
ment seniority rights. A second agreement provides that an employee
transferred to another department because of a reduction in working
force starts at the lowest job in that department and his seniority in
the department starts from the date of transfer, but in case of further
reduction of force the date of original employment continues to pre­
vail. Another stipulates that a transferred employee retains seniority
rights in his old department for a year, after which his seniority is
carried over to the new department. The fourth contains separate
seniority lists for men and women by department, with each retaining
seniority in a separate labor pool to which he can transfer in case of
reduction of force in his regular department and from which he can
transfer later if work which he can perform is available in other
departments. Under the fifth agreement an employee temporarily
transferred to another department continues to accumulate seniority
in his regular department; if the transfer is permanent (for more than
70 days), he may apply the accumulated seniority in his new
M ilita ry Service and W ar W ork

Clauses referring to the reemployment and seniority rights of em­
ployees who volunteer or are drafted for military service are found in
all but 1 of the 12 agreements. Generally the agreements merely
state that any employee who is honorably discharged will be rehired
“ with seniority rights unimpaired" or in accordance with the Selective
Training and Service Act. The R. J. Reynolds agreement and 2
others specifically provide for accumulation of seniority during
military leave. Under the Brown & Williamson agreement employees
who are drafted into war work will not lose their seniority rights
“ insofar as practicable."
Under the Reynolds agreement the company pays an employee
entering the service 2 weeks' pay as a “ severance allowance" if he has

been a regular employee for 6 months, gives all employees their vaca­
tion pay for the first year they are in the military service, and con­
tinues the employee’s payments on the existing group life insurance
plan, or if the employee is ineligible under the company’s plan, pays
the employee a sum sufficient to purchase Government term life
insurance. This agreement also provides that an employee may
retain, at his own expense, his family membership in the hospitalservice plan of the company. Regular employees who go into the
maritime service are specifically included in the military-service
rights of the Reynolds agreement, but seasonal and casual employees
are excluded.
Health and Safety

The R. J. Reynolds agreement specifies that the company shall
maintain a well-ventilated, well-lighted plant; continue its safety
education; furnish gloves, boots, and other protective equipment
when necessary; continue its provision of 'medical examinations for
applicants for work; and continue the provisions for the prevention
oi the spread of contagious diseases, and for the protection of the
general health of its employees. Any employee who becomes ill while
at work may be excused from work, after examination by the company
nurse or doctor, and any employee who is discharged because of
recommendations by the company nurse or doctor may have his case
taken up as a grievance if he feels the discharge is unjust.
Two other agreements contain health and safety provisions, one
being merely a statement that the company will continue provisions
for the general health of its employees, and the other that the company
will furnish an adequate supply of soap and towels in the lavatories.
W orking Rules

Under the Brown & Williamson agreement the company is specifi­
cally prohibited from having an operator of a cigarette making or
packing machine or a Patterson Tobacco Packer operate more than
one machine at a time. This agreement also specifies the number
of workers to be used on the Standard stemming machine and the
Pasley stemming machine.
Adjustm ent o f D isputes

Each of the 12 agreements establishes formal machinery for the
adjustment of grievances and 6 of them provide for arbitration.
Generally a grievance is defined as any dispute regarding the inter­
pretation or application of the agreement or an alleged violation
of the agreement.
Grievance machinery.—According to half of the agreements an
employee with a complaint must notify the union representative or
union committee, and the latter, after investigation to determine that
the complaint is legitimate, takes it up with the foreman. Several
agreements grant the aggrieved employee the option of taking the
complaint directly to the foreman alone or of being accompanied or
represented by his union representative, while one specifically provides
that both the employee and his representative take up the matter
with the foreman.

The agreements generally provide that in case the grievance is not
adjusted satisfactorily with the foreman, there are to be negotiations
between the plant grievance committee and higher company officials.
Two agreements provide for the participation of international union
officials in the final stages of the dispute. About half of the agreements
require that the grievance be in written form before it is taken to
persons higher than the foreman.
Very few tobacco agreements indicate when formal grievance
meetings are to be held, or say whether or not union representatives
and employees are paid for the time spent in the negotiations. The
Reynolds agreement is the only one which specifies that formal
grievance committee meetings with representatives of management
are to be held during working hours, and that committee members are
to be paid by the company for time lost. It calls for regular meetings
every 2 weeks to begin 2 hours before quitting time. The P. Lorillard
master agreement indicates that grievances can be handled during
working hours without loss of pay, and the P. Lorillard (Middletown,
Ohio) agreement, while requiring that conferences between the
grievance committee and management be held after working hours,
allows emergency meetings to be held during working hours without
loss of pay. Three other agreements allow adjustment of disputes
during working hours but do not indicate whether the time lost is to
be with or without pay. Only one other agreement mentions the time
of meetings; it requires that they be held after working hours.

When disputes cannot be settled through the grievance machinery,
6 agreements, covering over two-thirds of the workers employed under
the 12 agreements, provide for final settlement by an impartial agency
or individual at the request of either party. Two of these exclude
from the scope of arbitration demands for general wage changes. One
prohibits arbitration which involves any change in agreement pro­
visions. Any dispute over alleged violations of the National Labor
Relations Act is also excluded in this agreement unless the company,
union, and employee involved agree to arbitrate it. Another agree­
ment specifically prohibits arbitration regarding the constitution of the
Tobacco Workers’ International Union.
In each case the impartial arbitrator or the board of arbitration is
chosen at the time of the dispute. Five agreements establish a tri­
partite arbitration board consisting of one or two representatives
chosen by each of the parties and an impartial chairman selected either
by the board itself or by the National War Labor Board. According
to three of these five, however, the two representatives each of manage­
ment and labor are the same for the duration of the agreement, only
the impartial chairman being chosen at the time of the dispute. The
sixth agreement provides for referral of unsettled disputes to the Con­
ciliation Service of the United States Department of Labor and speci­
fies that if the Conciliation Service is unable to effect a settlement, it is
to name an arbitrator to settle the dispute.
None of the agreements mention any time limit on the arbitration


Although almost all the agreements state that the company may
discharge any employee for “ just” cause, only the Reynolds agreement
mentions specific causes, some of which are misrepresenting the reason
for desiring leave of absence, failing to report back at the expiration of
leave of absence unless the company grants an extension, and violating
the no-strike pledge.
The right of the union or employee to appeal cases of allegedly unfair
or unjustified discharge is specifically provided for in all but two agree­
ments. Several specify that discharge cases are to be taken up
through the regular grievance procedure while the others state merely
that the employee has a right to a hearing, or that an investigation will
be made, without indicating whether or not the grievance machinery
is employed. Most agreements require that cases involving appeal of
discharges be presented to the company as soon as possible after the
discharge, one agreement specifying 24 hours, but three allowing up to
30 days. One agreement requires that the company notify the union
promptly when a worker is discharged. Every agreement that allows
discharges to be appealed provides for reinstatement with back pay for
all time lost if the discharge is found to be unjust.
Strikes and Lock-outs

Strikes and lock-outs are banned for the duration of the agreement
in two agreements, and in six others stoppages are prohibited only
until all the steps in the grievance machinery have been exhausted.
Both of the former and two of the latter agreements contain arbitration

Part II.— Cigar Manufacture
General Characteristics o f the Industry

Before the invention of the automatic cigar-making machine in
1917, the cigar industry was typically one of small-scale operations.
Now thousands of these small establishments have disappeared and
the industry has become increasingly dominated by large companies.
The 1939 Census of Manufactures reported 598 cigar manufacturing
establishments,1 with 24 establishments (4 percent) employing more
than half of the total wage earners. Mechanization, combined with
a decline in demand caused by the shift in consumer preference from
cigars to cigarettes, caused a decline of more than half in the total
employment in the cigar industry in the 20-year period 1920-40.
During the past 4 years the downward trend has continued, with
employment decreasing from 49,000 to 34,500, or approximately 30
percent, from 1940 to 1944.
Although there is some cigar manufacturing in nearly all States,
the greatest production is concentrated in a few States east of the
Mississippi River. More than one-third of the establishments and
over two-thirds of the wage earners are located in Pennsylvania, New
Jersey, and Florida. Other important producing States are Illinois,
Ohio, Comiecticut, Michigan, Wisconsin, New York, and Massa­
Prior to mechanization, skilled male workers dominated the labor
force in the industry, but at present over 80 percent of the workers
are female. A great majority of the semiskilled machine operators
as well as a substantial number of the skilled hand rollers and hand
and machine strippers are women. Male workers are usually either
out-and-out hand cigar makers or unskilled maintenance workers.
H istory o f Unions and Collective Bargaining

The Cigar Makers’ International Union of America (AFL) was
established in 1867 and is one of the oldest organizations in the tradeunion movement, some of its leaders being active in the formation of
the American Federation of Labor. It was composed of skilled hand
craftsmen and, because of its unsuccessful opposition to the growth
of machine methods, it began to decline about 1920. Currently,
agreements negotiated by the Cigar Makers’ Union cover slightly
more than half of the organized workers in the cigar industry, with
most of its strength concentrated in the Florida area. In a number
of plants organized by this union the bilateral agreement consists of
wage rates only, other working conditions being dependent on the
custom and practice in the trade.
After the CIO was established it began organizing cigar workers in
New York City and in 1937 formed the United Cigar Workers’ Union.
Several years later these and other CIO cigar workers were affiliated
with the United Cannery, Agricultural, Packing and Allied Workers
1 This figure does not include the nonmechanized one-man or family shops known as “ buckeyes” which
are still in business. The Bureau of Internal Revenue reported 3,213 cigar factories in business in 1941, but
2,805 small plants, or 87.3 percent of all plants, produced less than 3 percent of the total number of cigars


of America, which recently changed its name to the Food, Tobacco,
Agricultural & Allied Workers Union of America. The FTA has
recently undertaken an organizing campaign in the New York, New
Jersey, and eastern Pennsylvania area among employees of the largest
manufacturers. The CIO union now has agreements covering slightly
less than half of the organized workers in the industry.
Extent o f Union Organization

Approximately half the workers in the cigar industry, or between
17,000 and 18,000 wage earners, are now covered by union agreements.
Among the large plants not yet organized are most of the plants of the
General Cigar Corporation, several units of Webster-Eisenlohr, Inc.,
and the Consolidated Cigar Corporation.
Coverage and Duration o f Agreements

The discussion in Part II is based on an analysis of 16 agreements
covering about 12,000 workers and representing nearly 70 percent
of the total number of workers under agreement at the beginning
of 1945. One of these agreements, which was negotiated by the
Cigar Makers7 International Union with the Cigar Manufacturers
Association of Tampa, covers approximately 15 companies in that
city which employ more than one-third of the workers under the 16
agreements studied. Another agreement was negotiated by the FTA
and the Deisel-Wemmer-Gilbert Corp. for 7 plants in Michigan and
Ohio. The Cigar Makers7 Union signed the P. Lorillard agreement
for its plant in Richmond, Va., other AFL unions signing the same
agreement for other plants of this company which manufacture
cigarettes and smoking tobacco.2 The remaining agreements were
negotiated by local unions and individual companies or plants.3
Certain occupational groups, such as office and clerical workers,
supervisors, and foremen, are usually excluded from the scope of
the agreements and in a very few instances maintenance workers
such as machinists, engineers, watchmen, and mechanics are also
2 Several craft unions covering specific groups of workers have also signed this agreement.
8 In addition to the three mentioned above, the plants covered and the unions with which the agreements
have been made are listed below:
Altamore Bros, Inc., N ew York, N . Y .................... Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
American Tobacco Co., Charleston, S. C ................Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
Consolidated Cigar Corporation, Lancaster, Pa., Food, Tobacco, Agricultural and Allied Workers
and Camden, N . J.
Union of America (C IO ).
Consolidated Cigar Corporation, Perth A m boy, Cigar Makers’ International Union of America
N . J.
(A F L ).
DeN obile Cigar Co., Long Island C ity, N . Y ........Food. Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
D . Emil Klein Co., Inc., N ew York, N . Y ............. Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
M . Marsh & Sons, Inc., Wheeling, W . V a............. Cigar Makers’ International Union of America
(A F L ).
Nieves & Claremont Cigar Co., N ew York, N . Y__ Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
Palumbo Cigar Co., Inc., N ew York, N . Y ............Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
Pennstate Cigar Corp., Philadelphia, P a ._ ............Food, Tobacco, Agricultural and Allied Workers
Union of America (C IO ).
Augustus Pollack, Inc., Wheeling, W . V a............. Food, Tobacco Agricultural and Allied Workers
Union of America (C IO ).
J oh n H . Swisher & Son, Inc., Jacksonville, F la ... Cigar Makers’ International Union of America


All but 2 of the agreements were negotiated for 1-year periods
with automatic renewal— 12 for yearly periods, and 2 for indefinite
periods in the absence of notice of intention to change or terminate.
One agreement was negotiated for a 2-year period renewable auto­
matically for a like period in the absence of notice of intention to
change, and another was made for a 3-year period with automatic
renewal for yearly periods thereafter unless notice is given. Generally,
notice of intention to change must be served 30 days prior to the ex­
piration date, although in several cases the notice period is 60 days
and in one, 40 days.
Union Status

Membership requirements.—Union membership is required as a
condition of employment under eight agreements which cover over
half of the workers under the agreements studied. Five of these,
among them the agreement with the Cigar Manufacturers Association
of Tampa, specify closed-shop conditions and require all employees
to be hired through the union. Three agreements, including that of
John H. Swisher & Son, Inc., establish union shops, the Swisher
agreement providing, in addition, that “ the company agrees to give
preference of employment to union members.” Another of these
three, while stating that all new employees must join the union within
a specified period, exempts maintenance employees, floorladies,
shipping clerks, and members of any other union and allows them to
pay a service fee equal in amount to union dues.
Five agreements covering over 30 percent of the workers and in­
cluding those with the American Tobacco Co., the Deisel-WemmerGilbert Corp., and the Lancaster and Camden branches of the Con­
solidated Cigar Corp. require “ maintenance of membership” for
employees who were members when the agreement was signed or who
later became members. Three agreements have no membership
requirements but merely grant the union sole bargaining rights.
Check-off.— Ten agreements, covering almost half of the workers,
include some form of check-off of union dues; 5 of these provide main­
tenance of membership, 4 are closed- or union-shop agreements, and
1 has no membership requirements. Six agreements, including those
of the Swisher Corp. and the Lancaster and Camden branches of Con­
solidated Cigar Corp., specify that the dues of union members are
checked off automatically; according to the other 4, including Ameri­
can and Deisel-Wemmer-Gilbert, dues are checked off only after the
individual employee has authorized it but, in 2 of the cases, once
authorized, the deduction cannot be revoked during the life of the
In order to compensate the employer for the bookkeeping expenses
incurred in administering the check-off, the M. Marsh & Sons agree­
ment allows the company to keep 3 percent and the Swisher agreement
5 percent of all the money collected.
While the agreement with the Tampa Association does not provide
for check-off arrangements, the company agrees to facilitate dues
collections by furnishing a table and chair at the main entrance to be
used by the shop collector during working hours; under this agree­
ment the company also agrees to furnish the shop collector with the
union book of each new employee hired.

Activities affecting union status.— Several of the agreements specifi­
cally state that the company retains the right to manage and direct
the working forces including the right to hire, fire, and transfer em­
ployees as the business requires. The agreements add, however,
that this right will not be used by the company to discriminate against
any member of the union. Several agreements contain clauses pro­
hibiting discrimination by either party because of race, color, creed,
or national origin; several specifically forbid discrimination by the
company against employees because of union activities; and a few
also include statements forbidding coercion by the union of nonunion
One agreement specifically forbids solicitation of membership on
company time, but this agreement and four others expressly allow an
outside union representative access to the plant during working hours
to help in settling grievances.
In about half of the agreements the company agrees to furnish a
bulletin board in the plant for the posting of union notices, but re­
serves the right to approve notices before posting.
Union label.— The Cigar Makers’ Union agrees under two agree­
ments to furnish free of charge the union label for all the company’s
products. The other agreements make no reference to the use of
the label.
W age Provisions

Minimum rates.— Only five agreements, two of them with large
companies, contain plant-wide minimum wage rates. One specifies
65 cents an hour; three specify 50 cents an hour for all employees;
another specifies 50 cents an hour for male and 45 cents for female
hourly paid employees, but only 40 cents an hour as the basic rate
for piece-work jobs. One of these provides a 5-percent increase
pending approval by the National War Labor Board.
Hiring rates of 5 cents below the minimum are contained in one of
the agreements specifying a plant-wide minimum rate, the employee
reaching the 50-cent rate after 60 days. Three other agreements
which mention only piece rates and do not stipulate plant-wide
minima, mention hiring or learner rates. One states that new em­
ployees who have not completed their probationary period are to be
paid 5 cents less than the basic hourly minimum until they reach
minimum production. Another provides that new employees are to
be paid 30 cents an hour until they exceed this amount on a piece­
work basis; the third states that new employees while learning are
to be paid not less than the minimum hourly rates provided by the
Wage and Hour Law.4
Two agreements contain clauses stating that wages are to be paid
on the basis of equal pay for equal quantity and quality of work.
Since one of these is the agreement with different plant-wide minima
for male and female workers, the different rates presumably indicate
that different work assignments are given to men and women.
No mention is made in any of these cigar agreements concerning
differentials for disabled and older workers.
Dead time pay.—Half of the agreements, covering almost half of the
workers, mention pay to employees during waiting time when ma­
chinery break-down or other circumstances halt work temporarily.
* Under the Fair Labor Standards A ct (Wage and Hour Law) the minimum hourly rate for the cigar
industry was raised to 40 cents an hour on August 10,1942.

Under two agreements, including that of the American Tobacco Co,,
employees are to be paid for the total time lost for any stoppage which
exceeds 15 minutes, pieceworkers being paid either on the basis of
their average earnings for the preceding week or their minimum
hourly rate, whichever is greater. The Deisel-Wemmer-Gilbert agree­
ment requires pay at the prevailing hourly rate based on the normal
piecework earnings for all time lost if the time is more than 10
minutes. Another agreement requires pay at the rate of 35 cents per
hour if the period of time lost does not exceed a half hour; if more than
1 hour’s stoppage is anticipated the employee may either go home or
wait without pay. The remaining agreements that mention “ stand­
by” pay do not name any specific amount of time the break-down
must last before compensation is made. One states that for the time
lost the employees will receive “ an average of regular pay” and another
that “ no wage reduction shall be made.” The other two merely state
that employees shall be compensated as before but fail to give details
of the former method.
Incentive wages.— Payment on a piece-rate basis for certain classes
of workers is indicated in 11 of the 16 agreements. Advance participa­
tion by the union in piece-rate setting is specifically provided in three
agreements: the Tampa Association agreement provides for a joint
equalization committee, made up of union and employer representa­
tives, to settle any question regarding the price scales of the so-called
“ Cartabon” ; the second agreement provides that any new job is to
have a price established by the union and company before it is put
into effect; under the third agreement new or revised schedules of
piecework rates, unless they are previously approved by the union,
are to be posted 5 days before they become effective, and differences
of opinion are to be settled through the regular grievance procedure.
Interim wage adjustments.— Provisions for general wage changes
during the life of the agreement are found in six agreements; five of
these cover small plants and are signed for 1-year periods, and the
sixth, the Tampa Association agreement, is negotiated for a 2-year
period. Three agreements allow the wage scale to be opened for
negotiations at any time if conditions in the industry, such as a change
in the price of cigars, warrant a change. Two others permit the
reopening of the wage scale in the event of the abandonment of the
“ Little Steel” formula or any change in national wage stabilization
policy. The Tampa agreement allows the union to request a change
in wage scales every 6 months during the term of the agreement.
Transfer rates.—A few agreements protect an employee’s earnings
when he is temporarily transferred to another job or division, and in
one agreement when he is permanently transferred, by stipulating
that he is to receive no reduction in rate because of a transfer at the
company’s request.
Minimum call and call-back pay.—Eight agreements covering almost
40 percent of the workers provide payment for a minimum number of
hours to employees called to work or who report for work at their
regular time but for whom no work is available. The Deisel-WemmerGfibert agreement provides that any employee who reports is paid for
a full 8-hour day if it is proved to the satisfaction of the company
that the lack of work is the company’s fault; otherwise, the employee
is paid 1 hour’s call pay. Four agreements guarantee a minimum of
4 hours’ call pay and three provide 2 hours. One of the group which

specifies 4 hours’ pay for all other employees provides only 2 hours’
pay for cigar makers.
The Deisel-Wemmer-Gilbert agreement and one other provide for
time and a half pay for all time worked by an employee who is called
back to work after completing his regular shift.


H ours. Overtime and W eek-E nd W ork

All except seven agreements provide for a regular 8-hour day and
40-hour week and for time and a half the regular rate in excess of
these hours. The agreement with the John H. Swisher & Son Corp.
is the only one which indicates that more than one shift is worked,
and it does not specify any differential or bonus for second shift work.
An agreement in the Philadelphia area specifies a 40-hour week; daily
hours for the first shift are 8 on Monday, Tuesday, and Wednesday,
6 on Thursday and Friday, and 4 on Saturday, and for the second
shift 6 hours on Monday, Tuesday, Wednesday, and Saturday and
8 on Thursday and Friday; daily overtime is paid after 8 hours’
work. The Tampa agreement and one other name the regular
8-hour day, 40-hour week, but fail to state whether or not overtime is
paid in excess of these hours.5 The John H. Swisher & Son and the
American Tobacco agreements provide weekly overtime after 40
hours, and the latter provides daily overtime after 10 hours. Two
agreements which cover small companies fail to mention hours and
overtime rates.
One agreement specifically provides that time spent in preparing
and cleaning machines is counted as time worked. Only one agree­
ment mentions lunch periods, and it requires that time and a half
be paid for any work done during the lunch hour.
Two agreements specifically refer to Executive Order 9240 with
respect to premium rates for week-end and holiday work, and one of
them provides Sunday and holiday rates which are to be substituted
when the order is terminated.6 Seven other agreements provide
premium rates for Sunday work, time and a half in two cases and
double time in the others. (If these companies were doing work
“ relating to the prosecution of the war” these provisions, of course,
were superseded by Executive Order 9240.)
Four agreements specifically require payment of time and a half
rates for any work done on Saturday. Five other agreements speci­
fically name a Monday through Friday workweek and presumably
any work done on Saturday is paid for at overtime rates since the
regular workweek ends on Friday. Three agreements, two of which
specifically require time and a half rates for Saturday work, provide
that a holiday not worked during the week is considered as time
worked as far as computing time and a half pay for hours over 40
is concerned. Under three agreements, however, no premium rates
are paid on Saturday if there is a holiday not worked during the week.
A very few agreements specifically exclude from the week-end and
* Under the Fair Labor Standards Act employees would have to be paid time and a half after 40 hours
per week, but not after 8 hours per day. Under the Walsh-Healey Public Contracts Act all employees
are paid time and a half after 8 hours per day.
6 “ On all work relating to the prosecution of the war” Executive Order 9240 prohibits premium pay for
Saturday and Sunday work as such, and makes the payment of double time for the seventh consecutive day
of a regularly scheduled workweek mandatory. It permits the payment of time and a half for the sixth
consecutive workday when such pay is specified b y the agreements.

holiday provisions certain maintenance employees, such as watch­
men and firemen, and one excludes seasonal employees who work in
green leaf tobacco.
P aid Vacations and Sick Leave

Annual 'paid vacations.—Annual paid vacations are provided for
regular employees under all the cigar agreements analyzed. A
single vacation period after a qualifying period of service is specified
in four agreements; the others provide graduated plans with in­
creased allowances for workers with longer service. One of the four
agreements with the single-period vacation clauses grants 2 weeks'
vacation after 1 year of service; the other three allow 1 week's va­
cation after 1 year of service.
Five of the 12 agreements with graduated plans, among them the
American and the D. Emil Klein Co. agreements, provide a maxi­
mum of 2 weeks' vacation after 5 years' service and, in all except
1, a minimum of 1 week's vacation after 1 year's service; the ex­
ception provides prorated vacation beginning with 3 days for 6
months' service. The remaining 7 graduated plans, including the
Diesel-Wemmer-Gilbert and the 3 Consolidated agreements, grant
a maximum of 1 week's vacation after 1 year's service. Shorter
periods are granted for less than 1 year's service— one-half week is
allowed after 6 months, in 3 cases; in 2 others the vacation is pro­
rated and begins with 2 days after 3 months' service; the remaining
2 allow a full week's time, but in 1 case pay is equivalent to one-half
week's wages after 6 months' service while in the other the pay ranges
from 2 days' wages after 1 month's service to 5 days' wages after 6
months' service.
In addition to the minimum service requirements, one agreement
provides that to be eligible for a vacation, the employee must have
actually worked 1,600 hours during the preceding year and another
that he must have worked 90 percent of the time worked by the
department during the preceding year. Under several others, ab­
sences of specified amounts of time make the employees ineligible;
for example 90 days' lay-off immediately preceding the vacation
period; absence of more than 60 days or 90 days because of illness dur­
ing the year; absence of more than 30 days in any 6-month period for
reasons other than illness. According to one agreement, if the em­
ployee is absent more than 10 days without a doctor's certificate the
question of whether or not he gets a vacation is left to the discretion
of the plant manager.
A week's vacation pay is generally 40 times the employee's average
hourly earnings, although in one agreement the pay is based on a
48-hour week and in another on the number of hours per week the
plant has normally operated during the preceding year, not exceeding
48. One specifies 2 percent of the employee's total earnings for the
preceding year.
Compensatory pay in lieu of vacations is permitted in several
agreements, generally at the discretion of the company. In the
Deisel-Wemmer-Gilbert agreement, however, the employer can
substitute compensatory pay for the vacation only if he pays 10
percent extra, and if a majority of the employees agree. In most
of the agreements the company reserves the right to schedule the
vacation periods.

Sick leave.—One agreement, covering a small New York City com­
pany, which grants a maximum of 2 weeks’ vacation, also grants each
employee 6 days’ paid sick leave with the added provision that 10
days before the agreement terminates the employee is to receive pay
for any unused portion based on the average daily earnings exclusive
of overtime for the 3 months preceding the date the payment is made.
Two additional agreements, while not granting paid sick leave, indi­
cate that an employee will not lose seniority because of absence due to
illness. One of these, the Swisher agreement, provides that the em­
ployee retains his seniority for 90 days, and if the absence is more than
90 days but not more than 150 days, he is put on a preferred list for
employment. The Tampa agreement provides that the employee
shall retain seniority for 60 days after an illness, or 120 days in the
event of childbirth, and may retain it for 6 months provided a medical
certificate is furnished by the employee every 60 days. If an employee
is absent more than 6 months he is put on a preferred list for employ­
H olidays

Five agreements, all covering companies in the New York area,
provide pay for holidays not worked, four of them designating six and
one designating four holidays. Under two of these agreements the
paid holidays are conditioned upon a minimum of 1 month’s consecu­
tive employment preceding the holiday. Holiday pay in all cases is
based on the average of the employee’s earnings for a specified time
preceding the holiday. Only one of these five agreements mentions
pay for work performed on the allowed holidays; it provides regular
pay in addition to the holiday pay. Two other of the five agreements
specify premium rates of time and a half for all work done on five
additional designated holidays.
The other agreements, which do not provide pay for holidays not
worked, with the exception of several which fail to specify the regular
daily and weekly hours and overtime rates, provide premium rates for
work done on specified holidays, generally six. Half of the agreements
require time and a half, and half require double time.7
Leave o f Absence

Leave jo r union business.— Five agreements allow leave of absence
for union business, four of them specifying time limits: Three grant
1 year and extensions if necessary, and one allows 2 years. Under two
agreements, one which allows a 1-year period and one which fails to
limit the period, seniority accumulates during the absence. One
agreement provides 2 years’ leave for a full-time union job, and also
allows up to 15 days’ leave for temporary union business to not more
than five additional employees.
Leave fo r personal reasons.— Of the seven agreements which allow
leave for personal reasons (such as illness in the family), three specify a
tentative limit on the time granted, subject to extensions in two cases.
The original period of leave is 30 days in two cases and 15 days in the
other. After the original period of 30 days, the Tampa agreement
* Executive Order 9240 requires payment of time and a half on New Year's D ay, Fourth of July, Labor
D ay, Thanksgiving D ay, Christmas D ay, and either Memorial D a y or one other holiday of greater local
importance, and prohibits premium pay for any other holiday.

allows extensions up to 6 months, and after that the employee is put
on the preferred list for employment. Almost all of these seven agree­
ments state that this leave is to be “ without prejudice” or “ without
loss” of seniority rights.
Seniority Rules

Seniority rules recognizing length of service for preferential con­
sideration in lay-off and rehiring and occasionally for promotions are
found in all the cigar manufacturing agreements except the one with
the Tampa Association, which contains detailed work-sharing provi­
sions to prevent lay-off if possible. Usually these rights do not apply
until the completion of a probationary period varying from 3 weeks to
3 months, but generally about 30 days.
In contrast to the cigarette agreements, in which seniority is
usually applied on a plant-wide basis, a majority of the cigar manu­
facturing agreements name the department as the unit for the appli­
cation of seniority. Five agreements, all of them with New York
companies, specify seniority by job or classification. One agreement
with a large company provides plant-wide seniority for promotions
and in the case of the closing of an entire department, and depart­
ment seniority for other lay-offs. Two agreements, both with large
companies, fail to define the unit to which seniority applies.
Seniority for special groups.—Four agreements grant union stewards
preferential seniority rights by providing that they shall be the last
laid off and the first to be rehired.
Several agreements contain a provision that employees hired
during the peak season in the fall are to be considered temporary
employees accumulating no seniority. One specifies that employees
hired after April 30, 1942, shall not receive the benefits of the work­
sharing provision, although such employees are put on the seniority
list in the order of hiring.
Loss of seniority.—Three agreements provide for the retention of
seniority rights for 12 months during periods of enforced lay-off.
Over half oi the agreements list the following as causes for the loss
of seniority: Voluntary quitting, discharge, and failure to report
after lay-off within a specified time, usually 5 days, after being
notified. A few agreements also list absence of a certain number of
days, usually 7, without proper notification.
Several agreements stipulate that the company is to post seniority
lists or have them available for inspection at any time.
L a y-o ff and Rehiring

Lay-offs and rehiring are to be made on the basis of strict seniority
in almost all the agreements. In one of the exceptions, seniority is
to govern lay-off and rehiring if the employee has worked 5 years; if
the employee has less than 5 years’ service, seniority is qualified by
other factors such as skill and ability to do the work. This agreement
also allows the company to lay off workers for a period of not more
than 7 days without regard to seniority. In two other agreements,
seniority is recognized as an important factor, but in one of these
merit and ability and in the other the employee’s attendance record

is considered in determining order of lay-off and rehiring. One of the
agreements, which provides job seniority only, specifies that when
lay-offs are necessary four women are to be laid off for every three
men. The Tampa Association agreement and agreements with two
small companies do not indicate the part played by seniority in lay­
One week’s advance notice of lay-offs is required by two agreements.
Work sharing.— Provisions for work sharing are found in 10 agree­
ments including all the agreements in the New York area and the
Tampa agreement. Three agreements indicate that in slack seasons
the work is to be divided so as to distribute it among the regular
employees, but they do not name a specific number of horns to which
work is reduced before lay-offs are made. The remaining agreements
provide for reducing hours of work to a stated minimum per week—
32 hours in four agreements and 24 hours in three agreements— before
lay-offs are made. The Tampa agreement calls for consultation with
the union before lay-offs are made if the employer is still unable to
retain his full working force after reducing hours to 32 per week.
Promotion and Transfer

The method of promoting and filling vacancies is outlined in 12 of
the agreements. In most of these, seniority is considered along with
other factors such as ability, competence, and skill, and when these
qualifications are equal seniority is the determining factor; four of these
state specifically that management is the judge of the applicant’s
ability and competence. The one agreement with combination plant
and department seniority provides that the new job or vacancy is to
be posted on the plant bulletin boards for 5 consecutive days, and
the bidding employee who has the greatest plant seniority, and who
is competent in the judgment of the company and the union, is to be
given a trial on the job. After the trial period the company is the
sole judge of the applicant’s competence.
Two agreements with small companies, which apply seniority on a
job basis, indicate that promotions are made on the basis of competence
alone, regardless of seniority. Only one agreement provides for pro­
motions on the basis of strict seniority, and this agreement also pro­
vides that if after a reasonable period of time the employee fails to
qualify for the job in question, the position shall be available to the
next person in line of seniority.
Two of the agreements state that seniority does not apply to pro­
motion to supervisory jobs.
Only one of the cigar agreements analyzed mentions the effect of
transfer of an employee’s seniority status. The agreement with the
plant and department seniority provides that if an entire operation
or department closes, an employee may transfer to another depart­
ment if a job is available there, but does not indicate whether or not
he takes with him to the new department his accumulated seniority.
Under this agreement an employee may transfer from night to day
work and retain his position on the seniority list. If an employee
requests a transfer to a new department, however, he loses his seniority
in the former department, and seniority in the new department starts
at the time of transfer.

M ilita ry Service

Reemployment and seniority rights of employees who enter the
armed forces are protected in almost all of these agreements. Gen­
erally, the agreements provide that an employee honorably discharged
shall be reemployed “ with all rights and privileges including seniority
status” or in a job of “ like seniority and status” if he is qualified.
Agreements with the American Tobacco Co., the Deisel-WemmerGilbert Corp., and two other companies specifically provide for the
accumulation of seniority by employees on military leave. Five
agreements name the specified time within which the employee must
apply after discharge to be eligible for his job: three agreements
allow 40 days and two allow 60 days,8
Several of the agreements state specifically that an employee who
replaces another employee who filters the armed forces is only a
“ temporary” employee and must forfeit the job upon the return of
the first employee, and one states further that military service reem­
ployment rights do not accrue to this “ temporary” employee should
he enter the service.
Clauses granting vacation pay or a bonus to employees entering
the armed forces are found in three agreements. The American
Tobacco Co. agreement grants prorated vacation pay plus a bonus of
2 weeks’ pay to employees with 1 to 2 years’ service, and 3 weeks’
pay to employees with more than 2 years’ service. The DeiselWemmer-Gilbert Corp. grants a bonus of 1 month’s pay to all employ­
ees with more than 1 month’s service, and another agreement grants
2 weeks’ pay to employees with 1 year’s service.
Employees “ drafted” into war work are entitled to the same reem­
ployment rights as veterans under agreements with three small
companies in the New York area.
Learners and Apprentices

One agreement stipulates that when apprentices reach the standard
production output per hour they are to be classed as skilled workers,
and two others state that they will be kept at the apprentice rate
until “ in the judgment of the company” they can be put on the
regular rate of pay. The Tampa agreement merely states that
apprentices are to be permitted in all departments according to
existing rules and regulations.
Health, and Safety

The clauses relating to health and safety which are included in
several of the agreements generally consist of statements to the
effect that the employer will make reasonable provisions for the
safety and health of the employees by providing adequate safety
devices, sanitary working conditions, etc.
One agreement specifies that the company may require a certificate
of health from any worker who appears unfit, and another, that the
company may require any employee to be examined by the company
doctor. If the employee protests the result of the examination, he
s The Selective Training and Service A ct of 1940 was amended in 1944 to permit the employee to apply
up to 90 days after honorable discharge. This extended period, of course, supersedes lesser periods provided
in agreements negotiated before the act was amended.

may be examined by his own physician also, and if the two doctors
do not agree a jointly selected third doctor makes the final decision.
One agreement with a New York City company requires that the em­
ployer provide for each worker a life insurance policy of $1,000.
Adjustm ent o f D isputes

All the cigar agreements analyzed provide some machinery for the
presentation and negotiation of grievances, and all except two provide
for final settlement by arbitration.
Grievance machinery.— In 9 agreements, including over 70 percent
of the employees covered by the 16 agreements studied, initial pres­
entation of a grievance to the management official is made by the
shop committee or the shop steward of the union. The employee,
accompanied by the shop steward, takes the grievance to the foreman
in 3 agreements, and in 1 the employee may present the grievance to
the foreman himself, or be accompanied and represented by his union
representative. Three agreements fail to outline the initial step.
Failing satisfaction, agreements generally provide for negotiations
between the shop committee and higher management officials, nine
of them granting the union the right to call in officials of the inter­
national union to negotiate with management in the final steps of the
grievance procedure. Three agreements require all grievances to be
presented in writing, and two others require the grievance to be
written before it reaches the last steps. Several agreements impose
time limits on some or all of the steps in order to prevent delays in
settling disputes.
Although several agreements mention that shop stewards or griev­
ance committees may have time off during working hours to receive
complaints, only three agreements specifically allow pay for the time
lost. One agreement cans for regular monthly meetings between the
union grievance committee and the company during working hours,
with pay by the company up to 2 hours’ time. This agreement also
allows union stewards not more than 5 hours and chief shop stewards
not more than 6 hours per month time off with pay for handling
grievances. The other two agi e3ments simply state that stewards, in
one case, and the shop committee, in the other case, shall not lose
any pay for time spent in handling grievances during working hours.

Twelve of the 14 agreements which provide for arbitration as the
final step in the settlement of disputes, state that arbitration may be
invoked at the request of either party. One allows arbitration only
at the request of the union, and the Tampa agreement provides for
arbitration as specified by the constitution of the Cigar Makers’
International Union, which states that “ the union, the manufacturer,
or the international president with the consent of the international
executive board” may appeal to arbitration.
All differences between the company and the union regarding the
meaning and application of the agreement are specifically included
within the scope of arbitration in most of the agreements, the Tampa
agreement explicitly naming also any dispute regarding an increase
or reduction in wages, and one other naming any dispute concerning
computation of pay. Three agreements exdude the subject of wag©

changes from arbitration, and two others exclude any modification
of the agreement.
A permanent umpire selected and compensated by both parties is
named in two agreements, but in all the others an arbitrator or an
arbitration board is chosen at the time arbitration is requested. The
most common arrangement is a tripartite board composed of one
member chosen by each of the parties and a third member selected
by the board itself. In the event of failure of the parties to agree
on the selection of an impartial man one agreement refers the choice
to a Federal district judge. In four of the agreements with companies
in New York the arbitrator is designated by the New York State
Board of Arbitration, and in the Tampa agreement a State or Federal
board of mediation and conciliation or any mutually decided upon
civic jury of citizens may be selected.
The Tampa agreement names a time limit of 30 days within which
the arbitration board must make its decision, and an agreement with
a small New York City company makes it obligatory for the parties
to comply with the arbitrator's decision within 48 hours.

A majority of the agreements say that the company may discharge
an employee for “ just” cause, although only a very few agreements
define specific reasons for discharge—such as inefficiency, failure to
produce a certain number of cigars per week, and violation of company
To safeguard the worker against arbitrary discharge, four agree­
ments require that the company must notify the union in advance
before any action is taken, and under one of these agreements (with
a small company) the employee can be discharged only with the con­
sent of the union. In another, if the union and company cannot
agree the employee will be discharged and the union can later appeal
the case to grievance machinery. The Tampa and the Swisher Corp.
agreements state that if the employee is charged with inefficiency he
will be given advance notice so that he can correct the inefficiency,
and if it is not corrected within the specified time, he will be discharged.
The remaining agreements which mention discharge provide for the
appeal of allegedly unfair or unjust discharge through the regular
grievance machinery, most of them requiring reinstatement with
back pay for the worker found to be unjustly discharged. A few
agreements establish special time limits within which the employee
must make the appeal, or in which the case must be disposed of;
limits in both cases are usually 5 days.
Strikes and Lock-outs

Strikes and lock-outs are banned completely during the life of the
agreement in 10 agreements, and until all the steps of the grievance
machinery have been exhausted in 1. The latter agreement does not
provide for arbitration. Disciplining of workers who violate the
“ no-strike” clause is provided in 1 agreement which states that em­
ployees failing to return to work within 24 hours after having been
notified to return shall be deemed to have forfeited their jobs.
Four agreements prohibit employers from forcing employees to do
work for another plant which is on strike.