The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Wage Chronology INTERNATIONAL SHOE CO., 1945-66 Bulletin No. 1479 UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary BUREAU OF LABOR S T A T IS T IC S A r t h u r M. Ross, C o m m is s i o n e r Wage Chronology INTERNATIONAL SHOE CO., 1945-66 Bulletin No. 1479 M a rc h 1 9 6 6 UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary BUREAU OF LABOR STATISTIC S A r t h u r M. Ross, C o m m is s i o n e r For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 2 0 4 0 2 - Price 20 cents Preface T h i s r e p o r t i s o n e o f a s e r i e s t h a t t r a c e s th e c h a n g e s in w a g e s c a l e s a n d r e l a t e d b e n e f i t s , n e g o t i a t e d in c o lle c t iv e b a r g a in in g a g r e e m e n t s , b y in d iv id u a l e m p lo y e r s o r c o m b i n a t io n s o f e m p l o y e r s w ith a u n io n o r g r o u p o f u n io n s. B e n e fits u n ila t e r a lly in tro d u c e d b y an e m p lo y e r a r e g e n e r a lly r e p o r te d . T h e c h r o n o l o g y s e r i e s i s in t e n d e d p r im a r ily a s a to o l fo r r e s e a r c h , a n a ly s is , and w ag e a d m in is tr a tio n . T h e s e r i e s d e a l s o n ly w ith s e l e c t e d f e a t u r e s o f c o lle c t iv e b a r g a in in g o r w a g e d e te r m in a tio n . R e fe r e n c e s to jo b s e c u r i t y , g r i e v a n c e p r o c e d u r e , m e t h o d o l o g y o f p i e c e - r a t e a d j u s t m e n t , a n d s i m i l a r m a t t e r s a r e o m it t e d . T h is In te r n a tio n a l S h o e C o m p a n y W age c h ro n o lo g y s u m m a r i z e s c h a n g e s in w a g e r a t e s a n d r e l a t e d w a g e p r a c t i c e s n e g o t i a t e d b y th e c o m p a n y w ith th e U n it e d S h o e W o r k e r s o f A m e r i c a a n d th e B o o t a n d S h o e W o r k e r s U n io n s i n c e th e f i r s t m a s t e r c o n t r a c t s in 1 9 4 5 . It i n c l u d e s th e t e r m s o f 15 c o l l e c t i v e b a r g a i n i n g a g r e e m e n t s e n t e r e d in t o b y th e p a r t i e s to d a t e . T h e p r o v i s i o n s o f th e f i r s t 14 a g r e e m e n ts — p u b lis h e d a s a b a s i c r e p o r t an d fo u r su p p le m e n ts — h a v e p r e v i o u s l y b e e n c o n s o l i d a t e d in to o n e d o c u m e n t . The m a t e r i a l s p r e v i o u s l y p u b l i s h e d h a v e b e e n s u p p l e m e n t e d in t h i s b u ll e t i n b y n e g o t i a t e d c o n t r a c t c h a n g e s e f f e c t i v e in 1965 an d 1966. L i l y M a r y D a v i d , C h ie f o f th e D i v i s i o n o f W a g e E c o n o m i c s , u n d e r th e d i r e c t i o n o f L . R . L i n s e n m a y e r , A s s i s t a n t C o m m i s s i o n e r , O f f ic e o f W a g e s a n d I n d u s t r i a l R e l a t i o n s , i s r e s p o n s i b l e f o r th e o v e r a l l d i r e c t i o n o f th e w a g e c h r o n o lo g y p r o g r a m . T h is b u l l e t i n w a s p r e p a r e d u n d e r th e s u p e r v i s i o n o f A l b e r t A . B e l m a n . iii Contents Page 1 1 IV tv IV In tro d u ctio n ________________________________________________________________________ 1 9 4 5 -5 1 __________________________________________________________________________ 1952 ___ 1953-57 1958-6 1 1 9 6 2 -6 4 __________________________________________________________________________ 1964—6 6 __________________________________________________________________________ 3 3 T a b le s: A— G eneral w age ch a n g e s_____________________________________________________ B— M inim um hourly rates for nonincentive w ork ers by a r e a ______________ C— R elated w age p ra ctices ____________________________________________________ G uaranteed m inim um earnings for w ork ers learning higher rated jobs ______________________________________________________ O vertim e p a y ____________________________________________________________ P rem iu m pay for Saturday and S u n d ay________________________________ H oliday p a y _______________________________________________________________ P aid v a c a tio n ____________________________________________________________ R eporting tim e __________________________________________________________ Down tim e _______________________________________________________________ Jury and electio n se r v ic e _______________________________________________ M achine repair a llo w a n ce_______________________________________________ T ech n ological change p a y _______________________________________________ Group insurance _________________________________________________________ P en sion p la n _____________________________________________________________ ix 5 9 10 10 10 11 11 12 14 14 15 15 15 16 17 W age Chronology: International Shoe Co., 1945—66 Introduction 1 9 4 5 -5 1 T his ch ro n o lo g y 1 tr a c e s the m ajor changes in w age rates and related w age p ra ctices negotiated betw een the com pany and the United Shoe W orkers of A m erica (CIO) and the Boot and Shoe W orkers (AFL) sin ce 1945, the date of the fir st m a ster a g reem en ts. Although th ere is a sep arate contract for each plant, all a greem en ts are negotiated cen trally and contain su b stan tially the sam e b asic p oin ts. C onditions of em ploym ent are the sam e in both the organized and un organ ized plants of the com pany. The con tracts cover only production, m ain ten an ce, and cu stod ial w o rk ers. Unions organizing a c tiv itie s in the International Shoe fa cto ries began in the early 1940*s. M aster agreem en ts betw een the com pany and the unions w ere fir st n egotiated in 1945. At the tim e of the la st negotiation (O ctober 1950), the United Shoe W orkers bargained for 10,500 production w ork ers in 21 shoe fa c to r ie s, 15 supply plan ts, and 1 tannery; the Boot and Shoe W orkers B argained for 7,000 w ork ers in 17 shoe fa c to r ie s and 1 supply plant; and w ork ers in 7 ta n n eries, 2 shoe fa c to r ie s, and 3 supply plants are rep resen ted by a num ber of other unions. The balance of the com pany’s operations are not organ ized and about 70 p ercen t of the com pany’s em p lo y ees are rep resen ted by th ese unions. A pproxim ately 90 p ercen t of the w ork ers in the fa cto ries of the In ter national Shoe Co. w ere paid on a p iecew ork b a sis. The changes reported in the chronology relate to th ese em p loyees as w ell as th ose paid on a straight hourly b a sis. S p ecial p rovision s of the con tracts dealing with the d a y-to-d ay a d m in is tration of the in cen tive plans are om itted , as are p ro v isio n s relating only to sp ecified p lan ts. Since the chronology started with the 1945 a g reem en ts, the p ro v isio n s rep orted under that date do not n e c e ssa r ily indicate changes in prior conditions of em ploym ent. The a g reem en ts, effectiv e O ctober 1, 1951, continued in effect until Sep tem b er 30, 1952, in the ca se of the United Shoe W orkers, and O ctober 31, 1952, in the ca se of the Boot and Shoe W orkers. They m ake no p ro v isio n for a r e opening on w ages or any other m atter. 1 For purpose and scope of wage chronology series, see Monthly Labor Review. December 1948 (p. 581). 1 2 1952 The International Shoe C o .1s agreem en ts with the U nited Shoe W orkers of A m erica (USW A-CIO) and the B oot and Shoe W orkers (B&rSW-AFL.), in effect sin ce O ctober 1951, exp ired in Septem ber and O ctober 1952. New 1 -y ea r a g reem en ts w ere n egotiated in O ctober and individual plant con tracts w ere signed at variou s d ates. They provided fo r retro a ctiv e in c r e a se s in earnings as w ell as changes in o v ertim e and holiday pay and in p aid -vacation p r a c tic e s. Although the unions negotiated sep a ra tely , both con tracts provided for the sam e gen era l w age in c r e a se . The sam e changes in related w orking p ra ctices w ere a lso m ade in each contract. The con tracts like those they rep laced , m ake no p ro v isio n for a reopening regarding any of the term s. 1953— 57 International Shoe Co. agreem en ts with the United Shoe W orkers of A m er ica (USWA) and the B oot and Shoe W orkers (B&SW), in effect sin ce the fa ll of 1952, expired in Septem ber and O ctober of 1953, r e sp ectiv ely . T h ese w ere rep laced by 2 -y e a r agreem en ts negotiated on O ctober 31, 1953, w hich esta b lish ed sem iannual c o st-o f-liv in g w age esca la to r cla u ses for the 18, 000 em p loyees rep resen ted by th ese 2 unions but p rovided for no im m ed iate change in pay. The agreem en ts added a third w eek of vacation after 15 y ea rs of se r v ic e and provided a com pany-paid h osp ital, m ed ica l, and su rg ica l plan. N egotiation s for new con tracts began in Septem ber 1955 and, when no agreem en t w as reached, the unions struck on N ovem ber 11, 1955. The strik e w as ended in ea rly D ecem b er on term s of an in c r e a se of a lm o st 5 p ercen t in the earnings of p iece and tim e w o rk ers, retro a ctiv e to O ctober 3, an additional advance of a lm o st 3 p ercen t in A pril 1956, and discontinu ance of the c o s t-o flivin g esca la to r cla u ses. The agreem en ts w ere for 2 y e a r s, with p ro v isio n for a third y ea r if an accep tab le p ension plan could be w orked out. In July 1957, the p a rties agreed upon the te r m s of a retirem en t plan, to be financed by com pany paym ents of 3 p ercen t of its g r o ss p a y ro ll, and extended the agreem en ts to Septem ber 30, 1958. 1 9 5 8 -6 1 The 3 -y e a r a g reem en ts betw een the International Shoe Co. and the United Shoe W orkers of A m erica and the B oot and Shoe W orkers that w ere scheduled to exp ire on Septem ber 30, 1958, w ere extended until O ctober 10, 1958. They w ere rep laced by 2 -y ea r agreem en ts negotiated on O ctober 12, w hich provided a 4 p ercen t w age in c r e a se effectiv e O ctober 1, 1958, and an additional 2. 5 p ercen t on O ctober 1, 1959, for about 14,500 w o rk ers. The a g reem en ts a lso rev ised r e porting pay p ro v isio n s and lib era lized life in su ran ce for retired em p lo y ees. The day after th ese con tracts exp ired on Septem ber 30, I960, agreem en t w as reached on term s of new 2 -y e a r co n tra cts. The new co n tra cts, w hich covered about 12, 300 w ork ers at 33 p lan ts, provided for w age in c r e a se s of 5 cen ts an hour 3 effectiv e January 2, 1961, and an additional 3 cents an hour effectiv e January 1, 1962. The a g reem en ts also im proved the h osp ital b en efits p rogram , lib era lized vacation elig ib ility req u irem en ts, and provided vacation b en efits for em p loyees retirin g during the y ear. The current agreem en ts are to continue in effect until Septem ber 30, 1962, w ithout p rovision for any reopening. 1962— 64 T w o -y ea r con tracts to rep lace those that expired Septem ber 30, 1962, w ere agreed to on the follow ing day by the International Shoe Co. , and the United Shoe W orkers of A m erica (USWA) and the B oot and Shoe W orkers (BkSW ) after a lm o st 2 m onths of n egotiation s. The new a g reem en ts, w hich covered about 13,000 w o rk ers, provided 3 -cen t-a n -h o u r gen eral w age in c r e a se s for a ll w ork ers on Jan uary 1, 1963, and again on January 1, 1964. 2 In addition, higher rates for som e in cen tive op eration s, effectiv e M arch 4 and Septem ber 3, 1963, w ill in crea se the earnings of on e-th ird of the com panyf s em p loyees an average of 6 cents an hour over the life of the con tract. Im provem ents in frin ge b en efits co n sisted of an additional paid holiday and an in crea se in w o m en ’ s accid en t and sick n ess b en efits to the lev el of the m e n ’ s b en efits. An actu arial study of the pension fund w as in stitu ted to d eterm in e the fe a sib ility of an early retirem en t p rovision under existin g financing a rra n g e m en ts. As a resu lt of this study, the p ension plan w as am ended to p erm it v o l untary retirem en t at age 62. The changes incorporated in the 1962 a g reem en ts, are to rem ain in effect until Septem ber 30, 1964, without any reopening. 1964—66 B argaining ob jectives for the com ing n egotiations in the shoe industry w ere developed at a biunion (United Shoe W orkers of A m erica—USWA—and Boot and Shoe W orkers Union—BSWU) w age p olicy con feren ce in M ay. N egotiations opened in late A ugust with the unions follow ing a w e ll-e sta b lish e d p roced u re, p resen tin g th eir noneconom ic contract p rop osals p rio r to the econom ic dem ands. At the 1964 s e s s io n s , the noneconom ic item s dealt with m ore than 50 contract p ro v isio n s. On Septem ber 9, International Shoe Co. and union n egotiators started th eir d isc u ssio n s of the u n io n s’ econom ic package which w as d esign ed to im prove e x istin g b en efits and add new p r a c tic e s. The unions' determ in ation to in c r e a se earnings w as ex p ressed in a req u est for a 1 5 -cen t-a n -h o u r w age in c r e a se and a $ 1 .4 0 m inim um for a ll p ie c e and hourly w o rk ers. An additional paid holiday and longer vacation s would have reduced w orktim e w hile m aintaining earnings. Substantial im p rovem en ts in the h o sp ita l-su r g ic a l-m e d ic a l plan, sick n ess and accid en t b en efits, and p en sion an n u ities, w ere included in the union package. The higher annuities w ere to be financed by an additional l^percent em p loyer contribu tion. A num ber of the p ro p o sa ls w ere aim ed at im proving job secu rity and ea rn ings when changes in op eration s, m a te r ia ls, or m ach in ery would have reduced em ploym ent or tak e-h om e pay. 2 An additional 3,000 to 4,000 unorganized workers were to receive the same changes in wages and benefits. 4 The unions a lso req u ested the esta b lish m en t of two new b en efits to p ro te c t earnings le v e ls: 2 d a y s1 paid fu n eral lea v e, and 7 d a y s1 paid sick lea v e. A p rop osal for the in itiation of a sev era n ce pay p rovision com p leted the u n ion s1 p rogram . On O ctober 22, the International Shoe Co. reach ed agreem en t on a 2 -y ea r contract w ith the U nited Shoe W orkers of A m erica and the Boot and Shoe W orkers Union. F or the fir st tim e in m any y e a r s, the unions signed with Brow n Shoe Co. b efore they did with International, and then only after the p a rties had a g reed on a 30-day exten sion of the 1962 con tract. E arnings of day and p iecew o rk ers w ere to be in crea sed 2 p ercen t in Jan uary 1965 and 1966, and an additional 2 p ercen t in c r e a se w as given em p lo y ees at the low est jo b -c la ss rate. One paid holiday w as added, bringing the to ta l to 8. D aily paym ents for h osp ital room and board and the su rg ica l m axim um w ere r a ised . P en sion b en efits w ere in crea sed and e lig ib ility for d isa b ility an n u ities w as reduced to 15 y ea rs of s e r v ic e , r e g a r d le ss of the w o rk erl s age. Som e 10,000 w ork ers are covered by the International Shoe Co. a g r e e m en ts with the unions; 7 ,0 0 0 in M isso u ri, A rk a n sa s, and Illin o is USWA plants and 3 ,0 0 0 in M isso u ri, K entucky, and T en n essee BSWU p lan ts. A ll a g reem en ts are to rem ain in effect until Septem ber 30, 1966. 5 A— General Wage Changes 1 Effective date Dec. 1, 1945, USWA and B&SW (by agreement). June 3, 1946, USWA and B&SW (by agreement). Sept. 2, 1946, USWA and B&SW (by agreement). Mar. 3, 1947, USWA and B&SW (by agreement and arbitration award). October 1947, USWA and B&SW (by agreement). December 1947, USWA and B&SW. April 1948, USWA and B&SW. May 1948, USWA and B&SW. July 1948, USWA and B&SW. October 1948, USWA and B&SW. February 1949, USWA and B&SW. Oct. 3, 1949, USWA and B&SW (by agreement). Oct. 2, 1950, USWA and B&SW (by agreement). Oct. 1, 1951, USWA and B&SW (by agreement). Sept. 29, 1952, B&SW and USWA . Oct. 1, 1953, USWA and Nov. 1, 1953, B&SW (by (agreements of Oct. 31. 1953). Provision 10 percent increase, averaging ap proximately 8 cents an hour. 7 cents an hour increase Applications, exceptions, and other related matters Approved by the Wage Stabilization Board on July 26, 1946. 5 cents an hour increase. 7 -1 /2 percent increase with a min imum increase o f 6 cents, aver aging approximately 7 cents an hour. 3 cents an hour in c r e a s e ---------------— 3 cents an hour in c r e a s e ------------------- Increase designated as co st-of-liv in g allowance, to be adjusted 3 cents whenever there was a 5 - point increase or decrease in the BLS Consumers’ Price Index. The agreement provided for a maximum increase o f 12 cents and lim ited reductions to the level o f the previous agreement. Adjustment o f cost-of-liv in g allowance. 3 cents an hour in c r e a s e ------------------- Adjustment o f co st-o f-liv in g allowance. 3 cents an hour d e c r e a s e ------------------- Adjustment o f co st-o f-liv in g allowance. 3 cents an hour in c r e a s e ------------------- Adjustment o f cost-of-liv in g allowance. 3 cents an hour in c r e a s e ------------------- Adjustment o f cost-of-liv in g allowance. 3 cents an hour d ecrea se------------------- Adjustment o f co st-o f-liv in g allowance. C ost-of-livin g adjustment frozen at 9 cents. Escalator clause eliminated. 6 cents an hour increase • 6 cents an hour in c r e a s e ------------------- Additional 3 cents to skilled mechanics. 4 percent increase, averaging 4 -1 /2 cents an hour. Percent increase applied to gross weekly earnings. The com pany’s p iece-rate schedule was therefore not revised to reflect the increase.2 Semiannual co st-of-liv in g escalator clause established, with 1 percent adjustment o f existing 4 percent extra wage payment (applied to gross weekly earnings) for each 1 . 15-point change in the Bureau o f Labor Statistics Consumer Price Index from its Aug. 15, 1953, level (194749=100). First adjustment due Apr. 5, 1954, based on the Feb. 15, 1954, index. No decrease in the index was to reduce extra wage payment below that currently paid. No wage change ------------------------------- See footnotes at end of table. 1 6 A— General Wage Changes Effective date Provision Apr. 5, 1954 ----------------- No wage change -------------------------------- Oct. 4, 1954 ................ — No wage change -------------------------------- Apr. 4, 1955 ----------------- No wage change -------------------------------- Oct. 3, 1955, USWA and B&SW (agreements o f D ec. 1955). 4. 8 percent increase in ea rn in g s------ Apr. 2, 1956, USWA and B&SW (agreements o f D ec. 1955). Oct. 1, 1958, USWA and B&SW (B&SW agreements dated Nov. and Dec. 1958, and USWA agree ments dated Dec. 1958 and Jan. 1959). Oct. 1, 1959, USWA and B&SW (B&SW agreements dated Nov. and Dec. 1958, and USWA agree ments dated D ec. 1958 and Jan. 1959)* Jan. 2, 1961, USWA and B&SW (agreements dated Oct. 1960). 2. 75 percent increase in ea rn in g s---- Applications, exceptions, and other related matters Semiannual review o f co st-o f-liv in g al lowance. Semiannual review o f c o st-o f-liv in g al low ance. Semiannual review o f co st-o f-liv in g al lowance. Increase resulted from raising extra wage payment from 4 to 9 percent. Con sequently, piece-rate schedules were not revised. C ost-of-livin g escalator clause discontinued. Minimum rate to be changed when man datory under Fair Labor Standards A ct to new minimum required by the act. Increase resulted from raising extra wage payment from 9 to 12 percent. 4 percent increase, averaging approxi- Increase applied to p iece, hourly, and sample extra rates. ^ mately 6 cents an hour. 2. 5 percent increase, averaging ap proximately 4 cents an hour. Increase applied to p ie ce , hourly, and sample extra rates. 3 5 cents an hour in c r e a s e ------------------- Increase applied to hourly rates. In con trast to procedure follow ed in 1958 and 1959, the earnings o f pieceworkers were increased by the amount o f the general wage change times the number o f hours worked during the week. Minimum rate increased to $1.15 an hour as required by 1961 amendment to Fair Labor Standards A ct; other rates in the progression schedule increased to reflect new minimum. Increase applied to hourly rates. Earn ings o f pieceworkers were increased by the amount o f the general wage change times the number o f hours worked dur ing the week. Weekly earnings o f pieceworkers increased by the general wage change times the number o f hours worked during the week. Agreement also provided a deferred gen eral wage increase, effective Jan. 1, 1964, and increases in incentive rates, effective Mar. 4 and Sept. 3, 1963. Sept. 3, 1961, USWA and B&SW. Jan. 1, 1962, USWA and B&SW (agreements dated Oct. 1960). 3 cents an hour in c r e a s e ------------------- Jan. 1, 1963, USWA and B&SW (agreements o f Oct. 1, 1962). 3 cents an hour in c r e a s e ------------------- See footnotes at end of table. Continued 7 A— General Wage Changes1 — Continued Effective date Provision Mar. 4, 1963, USWA and B&SW (agreements o f above date). Sept. 3, 1963, USWA and BSSW (agreements o f above date). Jan. 1, 1964, USWA and B&SW (agreements o f above date). 3 cents an hour in c r e a s e ------------ Jan. 4, 1965 (agreements dated Dec. 1964—Jan. 1965). 2 percent increase, averaging 3. 4 cents an hour. 5 Jan. 3, 1966 (agreements dated Dec. 1964-Jan. 1965). 2 percent increase, averaging 3. 6 cents an hour. 5 Applications, exceptions, and other related matters Deferred increase o f up to 5 cents per 100 piecework points in some incentive operations, amounting to 1 cent an hour when averaged over entire bargaining unit.4 Deferred increase o f up to 5 cents per 100 piecework points in some incentive operations, amounting to 1 .5 cents an hour when averaged over entire bar gaining unit.4 Minimum rate increased to $1. 25 an hour as required by 1961 amendment o f Fair Labor Standards A ct; other rates in progression schedule for lowest paid day-rate workers increased to reflect new minimum. Deferred wage increase. Weekly earn ings o f pieceworkers increased by the general wage change times the number o f hours worked during the week. Additional 2 percent increase to employees in lowest wage class and inequity ad justments at a number o f plants amounted to approximately 1. 5 cents an hour5 when averaged over the entire bargain ing unit. Agreement also provided a deferred general increase effective Jan. 3, 1966. See footnotes on page 8. Deferred increase. 8 Footnotes: * General wage changes are construed as upward or downward adjustments affecting an entire establish ment, bargaining unit, or plant at one tim e. They do not include adjustments in individual rates such as promotions and minor adjustments in wage structure or changes in individual job rates that do not have an im mediate or noticeable effect on the average plant wage level. 2 The majority o f production workers in International Shoe factories are paid on a piecework basis. 3 Sample extra rates apply to some piecework operations on samples where the workmanship is visible. 4 Under the company's incentive plan, 100 points is equal to approximately 100 minutes of work for the average worker. The 5 cents would, therefore, be the equivalent o f about a 3-cen t-an-hou r increase for the average pieceworker. The wage changes listed above were the major adjustments in the general wage level made during the period covered. Because of the omission of nongeneral changes, incentive earnings, and other factors, the total of the general changes listed will not necessarily coincide with the change in straight-time aver age hourly earnings. ^ The estimated cents an hour resulting from the percentage increases were provided by the unions. 9 B — Minimum Hourly Rates for Nonincentive Workers by Area Effective date and area Dec. 1, 1945: St. Louis area ---------- $0.675 .625 Outside St. L ou is---Jan. 25, 1950: .7 5 A ll a rea s----------------Mar. 1, 1956: All a rea s----------------- In accordance with amendment to Fair Labor Standards Act, e ffe c tive Mar. 1, 1956. A schedule was established providing automatic increases of 2 */2 cents per hour each 4 weeks to a rate that was equal to the minimum rate plus at least 50 percent of the difference between the minimum and maximum;* company could grant additional increases or the maximum rate to qualified workers, at its dis cretion, regardless of time. 1. 15 To com ply with amendment of Fair Labor Standards A ct, effective Sept. 3, 1961; other rates in progression schedule increased to reflect increase in minimum rate, although this was not included in the contract. Jan. 1, 1963: All a rea s----------------- Sept. 3, 1963: All a rea s----------------- In accordance with amendment to Fair Labor Standards Act, e ffe c tive Jan. 25, 1950. 1.00 Oct. 1, 1958 --------------- Sept. 3, 1961: A ll a rea s----------------- Applications, exceptions, and other related matters Rate By agreements of Oct. 1, 1962, automatic progression changed to rate equal to the minimum rate plus at least two-thirds the d if ference between the minimum and maximum rates. 1. 25 To comply with 1961 amendment of Fair Labor Standards Act; other rates in progression schedule increased to reflect increase in minimum rate. ^ 1 There are various maximums, depending on the length of tim e necessary to attain the skill required to perform a specific job . The following provides an example of the progression schedule for 2 jobs in the company's Springfield, 111. (Boot and Shoe Workers), plant: Cutback shoes Hourly rate Cutback shoes— Continued Hourly rate M axim um ----------------------------------$1,535 M in im u m ------------------------------$1. 15 After 4 w e e k s -------------------------1.175 Back shoe boy ( lasting department) 1.20 After 8 w e e k s -------------------------After 12 w e e k s----------------------1. 225 After 16 w e e k s----------------------1.25 M in im u m ----------------------------------1. 15 After 20 w e e k s ----------------------1.275 After 4 weeks ---------------------------1. 175 After 24 w e e k s----------------------1.30 After 8 weeks --------------------1. 20 After 28 w e e k s ----------------------1. 325 After 12 weeks -------------------------1. 225 After 32 w e e k s ----------------------1. 35 M axim um ----------------------------------1. 265 2 Examples of the progression schedule, eff jctive Sept. 3, 1963, are shown in the following 2 jobs in the company's Springfield, 111. (Boot and Shoe Workers), plant: Cutback shoes Hourly rate M in im u m -----After 4 weeks After 8 weeks After 12 weeks After 16 weeks After 20 weeks After 24 weeks After 28 weeks After 32 weeks $1. 25 1. 275 Cutback shoes— Continued M axim um ------------------------------------ |* Back shoe boy (lasting department) 1.35 1. 375 1.40 1.425 1.45 M in im u m -----------------------------------After 4 weeks ---------------------------After 8 weeks ----------------------------After 12 weeks --------------------------M axim um ------------------------------------ Hourly rate $1,635 1.25 1. 275 1.30 1.325 1.365 10 C— Related Wage Practices 1 Effective date Provision Applications, exceptions, and other related matters Guaranteed Minimum Earnings for Workers Learning Higher Rated Jobs D ec. 1 and 3, 1945, B&SW and USWA. 90 percent of former average hourly earnings guaranteed to employees learning new operation, providing such rate is not above 90 percent of average hourly earnings established for new job . Overtime Pay T im e and on e-h alf for work outside regular daily schedules or 40 hours a week. D ec. 1 and 3, 1945, B&SW and USWA. Oct. 1, 1952 (USWA) and Nov. 1, 1952 (B&SW). See footnotes at end of table. T im e and on e-h a lf the regular rate paid for all work outside of regular hours when em ployee worked some hours dur ing regular schedule. Not applicable to: (1) A new em ployee hired during the day, (2) an em ployee absent part of the day for personal reasons, (3) a new em ployee required to work 1 day out side o f regular schedule during first week o f employm ent, and (4) nonproduction employees on special scheduled hours.2 Tim e and on e-h alf paid for work in excess of 8 hours a day in situations 1 and 2 and after 40 hours a week in 3 and 4. 11 C— Related Wage Practices1— Continued Provision Effective date Applications, exceptions, and other related matters Premium Pay for Saturday and Sunday Dec. 1 and 3, 1945, B&SW and USWA. T im e and on e-h alf for work on Saturday. Double tim e for Sunday as such. Nonproduction employees on special schedules paid overtime rate only for Saturday or Sunday work in excess of 40 hours a week. Holiday Pay Dec. 1 and 3, 1945, B&SW and USWA. Sept. 2, 1946, B&SW and USWA. Tim e and on e-h alf for work on 6 specified holidays. No payment for holidays not worked. 3 paid holidays established for which workers received 8 hours' pay. Double tim e and on e-h alf (total) for work on paid holidays. Sept. 30, 1947, USWA and Added: 2 paid holidays (total 5) B&SW. October 1948, B&SW and Added: 1 paid holiday (total 6) USWA. Oct. 1, 1952 (USWA) and Nov. 1, 1952 (B&SW). See footnote at end of table. Holidays were: New Year's Day, M e morial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. Paid holidays were: Labor Day, Thanks giving, and Christmas. Holidays must fa ll within em ployee's basic workweek. Holiday pay to equal average straighttim e hourly earnings during last previ ous full-calendar quarter if quarter was more than 30 days prior to payment. When average could not be obtained by this method, average for 6 weeks prior to holiday was used. Holidays added: New Year's Day and M emorial Day. Holiday added was Independence Day. T o be eligible for pay on any holiday em ployee must have been on payroll for at least 30 days, and have worked day prior and day after each holiday unless properly excused. Armistice Day and Decem ber 26 sub stituted for Independence Day and M emorial Day 1953, which are on Saturday. 12 C— Related Wage Practices1— Continued Effective date Provision Applications, exceptions, and other related matters Holiday Pay— Continued Oct. 1, 1953 (USWA) and Nov. 1, 1953 (B&SW). D ec. 24, 1954, and D ec. 31, 1954, substituted for Christmas Day 1954 and New Year's Day 1955, which were on Saturday. Nov. 11, 1954, substituted for Independence Day which was on Sunday. Veterans Day (Nov. 11) 1956, 1957, and 1958, substituted for Memorial Day. Holiday pay to be calculated at straighttim e average hourly earnings for 6 weeks prior to holiday or, if em ployee had no earnings record during the 6 weeks, for entire period available. Agreement continued Veterans Day as a paid holiday and Memorial Day as an unpaid holiday for which tim e and one-half was paid for tim e worked. Oct. 1, 1955, USWA and B&SW. Oct. 1, 1958, USWA and B&SW (B&SW agreements dated Nov. and D ec. 1958, and USWA agree ments dated D ec. 1958 and Jan. 1959). May 30, 1963, USWA and B&SW (agreements of Oct. 1, 1962). D ec. 24, 1964 (agreements dated Dec. 1964— Jan. 1965). Added: 1 paid holiday (total 7) Holiday was M emorial Day, formerly an unpaid holiday. Added: 1 paid holiday (total 8) Holiday was Christmas Eve. Paid Vacations Dec. 1 and 3, 1945, B&SW and USWA. 1 week after 1 and less than 5 years' continuous service; 2 weeks after 5 years' continuous service. See footnote at end of table. Vacation pay to equal straight-time av erage hourly earnings during last previous full quarter of calendar year. Number of hours o f vacation pay deter mined by average of hours that a plant was in operation during past year but not fewer than 40 nor more than 48 a week. Employee must have worked minimum o f 1,000 hours in past year to qualify for vacation. 13 C— Related Wage Practices1— Continued Effective date Provision Applications, exceptions, and other related matters Paid Vacations— Continued D ec. 1, 1947, B&SW and USWA. Oct. 1, 1952 (USWA), and Nov. 1, 1952 (B&SW). Oct. 1, 1953, USWA, and Nov. 1, 1953, B&SW. June 1, 1960, USWA and B&SW (agreements dated Oct. 1960). Oct. 1, 1960, USWA and B&SW (agreements dated Oct. 1960). Minimum hours necessary to qualify for vacation changed to 1, 100 hours of tim e paid for (including vacations and holidays). ------------------------------------------------ Workers em ployed by the company dur ing vacation period and having 100 but less than 1, 100 hours of work during year to receive 2 percent of average annual earnings if their total length of service with the company qualified them for 1 week's vacation and 4 per cent if qualified for 2 weeks' vacation. Added: Third week o f vacation after 15 6 percent of total earnings during year years' continuous service. for workers with 15 years' or more co n tinuous service and having 100 but less than 1, 100 hours of work during the year. Those with 1, 100 hours to receive full vacation pay. -------------------------------------------------- Added: Employees working 100 but less than 1, 100 hours during vacation qualifying period, entitled to retire ment benefits, and retiring before end o f vacation qualifying period, to receive 6 percent of wages earned during qualifying period. Employees with 1, 100 hours of work or more to receive 3 weeks' pay. ------------------------------------------------ Changed: Employees with (1) 1 year or more of service, (2) a vacation qualifying date other than June 1, and (3) a total of 1/12 of 1, 100 hours worked for each full month of employment between employment anniversary date and follow ing June 1, to receive benefits equal to 1/12 of the number o f hours' pay due for a 1 -week vacation for each month em ployed between e m ployment anniversary date and follow ing June 1. Proportionate adjustment to be made after 5th and 15th anniversary of employm ent. See footnote at end of table. ------------------------------------------------- 14 C— .Related Wage Practices! — Continued Effective date Provision Applications, exceptions, and other related matters Reporting T im e D ec. 1 and 3, 1945, B&SW and USWA. Minimum of 2 hours* pay at average hourly earnings guaranteed em ploy ees not notified of lack of work. Oct. 1, 1958, USWA and B&SW (B&SW agreements dated Nov. and D ec. 1958, and USWA agree ments dated D ec. 1958 and Jan. 1959). Changed to: Minimum 3 hours' pay at average rate guaranteed em ployees required to report in morn ing, 2 hours' for employees required to report one-half hour or less before usual lunch period. Not applicable if failure to furnish work was due to: (a) Causes beyond control of management, (b) em ployee left plant before lapse of 2 hours, unless previously excused. Downtime D ec. 1 and 3, 1945, B&SW and USWA. 90 percent of average hourly earnings paid pieceworkers for tim e lost after stoppages exceeded 30 minutes. Oct. 1, 1951, USWA and B&SW (agreements dated Oct. 1951). Oct. 1, 1960, USWA and B&SW (agreements dated Oct. 1960). Correction: Guarantee extended to tim e lost through lack o f work or machine breakdown. T im e lost must not have been the fault of em ployee. A pplicable only if em ployee was re quired to remain in plant or accepted assignments to other machines or operations. Changed to: 90 percent of average hourly earnings paid pieceworkers for tim e lost in excess of 20 minutes because of lack of work. See footnote at end of table, Applied only to stoppages caused by pow er- or steam -line failure. 15 C— Related Wage Practices 1— Continued Effective date Provision Applications, exceptions, and other related matters Jury and Election Service D ec. 1 and 3, 1945, B&SW and USWA. Employees required to serve on a jury or at elections or registrations c o m pensated by company for difference between amount paid for service and regular pay. Employees were expected to work full time when not actually engaged in court or election duty. Machine Repair Allowance D ec. 1 and 3, 1945, B&SW and USWA. Pieceworker paid average hourly earn ings when directed to do machine repair work consisting of more than normal adjustments and not part of regular job . T echn ological Change Pay Oct. 1, 1960, USWA and B&SW (agreements dated Oct. 1960). Oct. 1, 1962, USWA and B&SW (agreements of same date). Rate midway between 90 percent of class wage (i. e. , expected earnings per hour for an average operator) and 90 percent of em ployees’ straighttim e hourly earnings, for 120 hours or until a piece rate had been author ized, guaranteed operators transferred to machine that represented a te ch n ological change. Changed: Guarantee for operators transferred to machine that repre sented a technological change— lesser of 60 points per hour at class wage of new machine or average pay of em ployee on previous job . See footnote at end of table. New machine must have replaced another machine or hand operation that paid the same class wage. Guarantee applied for minimum of 120 hours or until a piece rate was estab lished, whichever occurred later. 16 C— Related Wage Practices1— Continued Effective date Provision Applications, exceptions, and other related matters Group Insurance Dec. 1, 1945 June 1, 1948 Oct. 1, 1953, USWA, and Nov. 1, 1953, B8SW. Not included in the contract; established Life insurance: Contributory group in by company in June 1934. Employee surance plan available to employees contribution was 80 cents a month. with 3 months' service, providing $2, 000 in the event o f natural or ac cidental death. For participants un der 65 years o f age, who left em ploy ment because o f total disability, death benefit extended for 12 months (if em ployee was insured for less than 12 months at the time o f total disability, for period equal to the tim e insured). Provided through Mutual Aid Societies Sickness and accident benefits: $7 a established at various plants from 1902 week for women and $10 for men up on through the 1940's. Employee con to maximum o f 15 weeks in a 12tribution ranged from 35 to 50 cents a month period. month. In some cases payments were extended to 15 weeks. Benefits pay able for all sickness and accidents. Changed to: Sickness and accident ben Applicable only to nonoccupational ac cidents and sickness not covered by efits: Mutual Benefits Societies su workmen's compensation. Employee perseded by insured sickness and ac contribution range from 35 cents to cident plan. For employees with less $1 a month depending on length o f than 5 years' service, $7 a week for service and sex. women and $10 a week for men, up to a maximum o f 13 weeks for each illness. For employees with 5 years' service or m ore, $14 for wom en and $20 for men, up to a maximum o f 13 weeks for each illness. Benefits to begin on first working day absent because o f accident or 4th day ab sent because o f illness. Benefits applied to employees with 3 Changed to com pany-paid plan: months' service. Increasing sickness and accident bene fits to $25 a week for men and $15 a week for wom en, beginning on 1st day o f absence because o f nonoccupational accident and 8th day o f illness. Hospital and surgical benefits available Adding hospital and surgical benefits— $8 a day hospitalization for 31 days for dependents at cost o f $3. 25 a month. (maximum $248); $3 daily in-hos pital m edical benefits for 31 days (maximum $93); $160 maximum spe cial hospital services; fiat $100 ma ternity benefit ($150 for Caesarian delivery and $50 for miscarriage). See footnotes at end of table, 17 C— Related Wage P racticesi— Continued Effective date Provision Applications, exceptions, and other related matters Group Insurance— Continued Oct. 23, 1958 (company memorandum o f same date). Jan. 2, 1961, USWA and B&SW (agreements dated Oct. 1960). Dec. 1, 1962 (USWA and B&SW agreements o f Oct. 1, 1962). D ec. 1, 1963 (USWA and B&SW agreements o f Oct. 1, 1962). Dec. 1, 1964 (agreements dated Dec. 1964-Jan. 1965). Added: Life insurance— $1,000 noncon Retirees permitted to choose between two amounts. Those choosing larger amount tributory or $2, 000 contributory p olicy to contribute 80 cents a month, company provided retired employees.^ to pay remaining premium. Hospital and special services benefits availa Increased to: ble after patient paid $25 for each con Hospitalization (room and board)— $12 finement. per day (maximum $3 72). Special hospital services— up to $240. Increased: Sickness and accident ben efits for wom en—to $20 a week. Increased: Sickness and accident ben efits for wom en— to $25 a week. Increased to: Hospitalization-room and board-$15 a day (maximum, $465). Surgical“ Surgical schedule—$300 m axi mum (was $200). Employee to pay first $25 o f hospital charges. Hospital and surgical benefits available for dependents at cost o f $4. 46 a month. Pension Plan Company paid retirement plan estab Oct. 1, 1957, USWA and lished to provide: B&SW (supplemental agreements o f July 1957). Normal retirement benefits o f $1.25 a month for each year o f credited serv ic e , up to 30, for employees at age 65 with at least 15 years' servicej to be supplemented by Federal social security benefits. See footnotes at end o f table. Company to pay 3 percent o f gross pay roll. Benefits to begin Oct. 1, 1958. Normal or disability benefits applicable to employees terminated on or after Oct. 1, 1955, who met age and service requirements at tim e o f termination. 18 C— Related Wage Practices 1— Continued Effective date Applications, exceptions, and other related matters Provision Pension Plan— Continued Oct. 1, 1957, USWA and B&SW (supplemental agreements o f July 1957)— Continued Total and permanent disability benefits identical with normal retirement benefits for employees at age 50 or older with 15 years’ service and at any age with 25 years' service. Vested rights: Employee terminated from active service on or after Oct. 1, 1957, after at least 15 years' contin uous credited service to receive de ferred benefits at age 65, based on credited service to date o f termina tion. For periods after Oct. 1, 1957, 1 year's service credited for each year o f con tinuous service in which employees worked 1 ,1 0 0 or more hours with fol lowing proportions credited for fewer hours: Hours worked Service credit 200-499 ----------- — — 0. 25 year 500- 799 ---------- -------- . 50 year 8 0 0 -1 ,0 9 9 ---------------- • 75 year 1 ,100 or m o r e ---------- 1. 00 year Jan. 1, 1958 (supplemental Added: For purpose o f pension benefit agreement dated Oct. 31 , only, provision for credited service ex tended to em ployee with 2 years' or 1958). more senjority whose job was elim inated and who did not refuse a job he was phys ica lly able to perform. Provision that em ployee did not lose credited service, upon plant shutdown, i f em ployed in an other company plant within 1 year o f layoff date, continued. Oct. 1, 1962, USWA and Changed: Normal retirement benefits— Agreement provided for lowering retire age requirement reduced to 62. BbSW (agreements o f ment age if benefits would not increase above date). company contributions and Internal Revenue Service would approve change for tax purposes. Change in age require ment was adopted. Nov. 1, 1964 (agreements Increased to: Increased to: Company contribution— 4 percent of gross Normal retirement benefits—$ 1 .5 0 a dated Dec. 1964-Jan. payrolls. month for each year o f credited serv 1965). ice up to 30. Changed: Total and permanent disability—elig ib il ity reduced to 15 years' service, re gardless o f age. Nov. 1, 1965 (agreements Increased to: dated D ec. 1964-Jan. Normal retirement benefit- to $ 1.75 a month. 1965). 1 The last entry under each item represents the most recent change. 2 Defined as a schedule regularly exceeding 8 hours a day and including work outside o f schedule for factory workers. 3 Some plants deviated from the general plan. 4 Since 1948, the company provided employees ineligible for pension benefits because they lacked 15 years’ credited service but who were (1) 65 years old or (2) 60 but not yet 65 and unable to perform avail able work to which they were entitled, with life insurance coverage under the same election and contribution provisions as other retirees (1) for a period equal to em ployee's length o f service, if less than 10 years, or (2) for life , i f em ployee had 10 years' or more continuous credited service. W age Chronologies The follow ing lis t con stitu tes a ll w age ch ron ologies published to date. T hose for w hich a p rice is shown are availab le from the Superintendent of D ocu m en ts, U .S . G overnm ent P rinting O ffice, W ashington, D. C. , 20402, or from any of its region al sa le s o ffic e s. T hose for w hich a p rice is not shown m ay be obtained free as long as a supply is availab le, from the B ureau of Labor S ta tistic s, W ashington, D. C. , 2021Z, or from any of the region al o ffices shown on the in sid e back co v er. A lum inum Com pany of A m erica , 1939—61. BLS R eport 219. A m erican V isc o se , 1945—63. BLS R eport 277 (20 cen ts). The Anaconda Co. , 1941—58. BLS R eport 197. A n th r a c ite M ining Industry, 1930—66. BLS B ulletin 1494. A r m o u r and Co. , 1941—67. BLS B u lletin 1481. A .T .& T .— Long L in es D epartm ent, 1940—64. BLS B u lletin 1443 (40 cen ts). B erk sh ire Hathaway Inc. , 1943—66. BLS B u lletin 1475 (20 cen ts). B ethlehem A tlantic Shipyards, 1941—65. BLS B u lletin 1454 (25 cen ts). 2Big Four Rubber C om panies, A kron and D etroit P la n ts, 1937—55. B itum inous C oal M in es, 1933—66. BLS B u lletin 1461 (20 cen ts). The B oeing Co. (W ashington P lan ts), 1936—64. BLS R eport 204 (20 cen ts). C arolina Coach Co. , 1947—63. BLS R eport 259. C h rysler C orporation, 1939—64. BLS R eport 198 (25 cen ts). C om m onw ealth E dison Co. of C hicago, 1945—63. BLS R eport 205 (20 cen ts). 1 Dan R iver M ills, 1943—65. BLS B u lletin 1495. F ed era l C la ssifica tio n Act E m p loyees, 1924r-64. BLS B u lletin 1442 (35 c e n ts). Ford M otor Com pany, 1941—64. BLS R eport 99 (30 cen ts). G eneral M otors Corp. , 1939—63. BLS R eport 185 (25 cen ts). International H arvester Com pany, 1946—61. BLS R eport 202. L ockheed A ircra ft Corp. (C alifornia Com pany), 1937—64. BLS R eport 231 (25 cen ts). M artin—M arietta Corp. , 1944—64. BLS B u lletin 1449 (25 cen ts). M a ssa ch u setts Shoe M anufacturing, 1945—66. BLS B u lletin 1471 (15 cen ts). New York City L au n d ries, 1945—64. BLS B u lletin 1453 (20 cen ts). N orth A m erican A viation , 1941—64. BLS R eport 203 (25 cen ts). N orth A tlantic L ongshorin g, 1934—61. BLS R eport 234. P a cific C oast Shipbuilding, 1941—64. BLS R eport 254 (25 cen ts). 2 P a cific Gas and E le c tr ic Co. , 1943—59. P a c if ic L ongshore Industry, 1934—65. BLS B u lletin 1491. R ailroad s— N onoperating E m p lo y ees, 1920—62. BLS R eport 208 (25 cen ts). S in clair Oil C om panies, 1941—66. BLS B u lletin 1447 (25 cen ts). Sw ift& C o. , 1942—63. BLS R eport 260 (25 cen ts). U nited S tates S teel C orporation, 1937—64. BLS R eport 186 (30 cen ts). W estern G reyhound L in es, 1945—63. BLS R eport 245 (30 cen ts). W estern Union T elegrap h Co. , 1943—63. BLS R eport 160 (30 cen ts). * Study in progress; price not available. 2 Out of print. See Directory o f Wage Chronologies, 1948-October 1964, for Monthly Labor Review issue in which basic report and supplements appeared. ☆ U. S. GOVERNMENT PRINTING OFFICE : 1966 O - 215-335 BUREAU OF LABOR STATISTICS REGIONAL OFFICES HAWAII
@FedFRASER