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L2-3 /f/y W age Chronology United States Steel Corporation and United Steelworkers of America (AFL-CIO) March 1937-April 1974 Bulletin 1814 U S. DEPARTMENT OF LABOR Bureau of Labor Statistics 1974 W age Chronology United States Steel Corporation and United Steelworkers of America (AFL-CIO) March 1937-April 1974 Bulletin 1814 U. S. DEPARTMENT OF LABOR Peter J. Brennan, Secretary BUREAU OF LABOR STATISTICS Julius Shiskin, Commissioner 1974 For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, GPO Bookstores, or BLS Regional Offices listed on inside back cover. Price $1.20. Make checks payable to Superintendent of Documents. Preface This bulletin is prepared by the Bureau of Labor Statistics as part of a series that traces changes in wage scales and related benefits negotiated by individual employers or combinations of employers with a union or group of unions. Benefits unilaterally introduced by an employer generally are included. The information is obtained largely from collective bargaining agreements and related documents voluntarily filed with the Bureau. Descriptions of the course of collective bargaining are derived from the news media and confirmed and supplemented by the parties to the agreement. Wage chronologies, dealing only with selected features of collective bargaining or wage determination, are intended primarily as a tool for research, analysis, and wage administration. References to job security, grievance procedures, methods of piece-rate adjustments, and similar matters are omitted. For a detailed explanation of the purpose and scope of the chronology program, see “Wage Chronologies and Salary Trend Reports ” BLS Handbook o f Methods, Bulletin 1711 (Bureau of Labor Statistics, 1971), pp. 209-212. This wage chronology summarizes changes in wage rates and related compensation practices negotiated by the United States Steel Corporation with the United Steelworkers of America (AFL-CIO) since 1937. This bulletin replaces Wage Chronology: United States Steel Corporation, 1937-67, published as BLS Bulletin 1603, and incorporates the supplement covering the 1966-70 period. Materials previously published have been supplemented by contract changes negotiated in 1971. Except for a revised introduction and other minor changes, earlier texts are included as they were originally published. The section for 1966-74 was prepared in the Division of Trends in Employee Compensation by William M. Davis and Diane L. Bayless. in Contents Page In tro d u c tio n ....................................................................................................................................... 1 Summary of contract n eg o tiatio n s................................................................................................... 3 January 1947-December 1 9 5 1 ................................................................................................... 3 December 1951-June 1954 3 July 1954-June 1956 4 July 1956-June 1959 4 July 1959Ju n e 1962 5 July 1962-May 1965 8 May 1965-July 1968 10 August 1968-July 1971 ................................................................................................................ 11 August 1971-April 1974 ......................................................................................................... 13 Experimental negotiating agreement ..........................................................................................14 Tables: 1. General wage ch an g es..............................................................................................................16 2a. Schedule of standard hourly rates, by job class and title, and department, 1948-55 24 2b. Schedule of standard hourly rates, by job class, 1956-61 ............................................................................................................ ... 27 2c. Schedule of standard hourly rates for nonincentive jobs, by job class, 1965-73 .............................................. . . 28 2d. Schedule of hourly wage rates and additives for incentive jobs, by job class, 1965-73 ................................................................. 29 3a. Selected classifications by job class, January 1968 30 3b. Selected classifications by job class, 1969-74 32 4. Minimum plant rates, by division, 1937-55 34 5. Supplementary compensation p ractices...............................................................................35 Shift premium pay ......................................................................................................... 35 Overtime p a y ...................................................................................................................35 Pay for Sunday w o r k ......................................................................................................35 Holiday p a y ...................................................................................................................... 3g Paid v acations...................................................................................................................37 Reporting t i m e ................................................................................................................39 Jury-duty p a y ...................................................................................................................39 Funeral l e a v e ...................................................................................................................4 q Relocation allo w an ce..................................................................................................... 4 q Savings and vacation p l a n ...............................................................................................41 Insurance benefits p l a n ..................................................................................................47 Pension plan ...................................................................................................................37 Contents—Continued Page Supplemental unemployment benefits p l a n .........................................................................64 Severance allowance .............................................................................................................68 Earnings protection plan ...................................................................................................... 68 Wage chronologies available ................................................................................................................76 Introduction This chronology summarizes changes over the years in wages and related benefits in steel-producing operations of U.S. Steel Corp. that have resulted from collective bargaining with the United Steelworkers of America (USA) and, when it was in existence, from orders of the National War Labor Board (NWLB). To put these developments in perspective, this introduction discusses briefly the histories of the company and union, early company-union relations, and pertinent aspects of the current collective bargaining process. Brief history o f the company. U.S. Steel Corp.—formed through a combination of a number of existing major steel producers—was incorporated in New Jersey on February 25, 1901 as one of the world’s largest manufacturing operations. Since that time, it has maintained its position as America’s leading steel producer. The company, which is a fully integrated producer of steel, manufactures and sells virtually all types of semi-finished and finished iron and steel mill products. Operations include the mining and transporta tion of iron ore, limestone and coal, and the production of coke, coke oven gas, and tar. The company has long been engaged in other fields as well, and has diversified into activities such as the production and selling of agricultural and industrial chemicals, cement, copper wire and cable, and into oilwell products distribution, structural steel fabrication and erection, general financing, real estate development and engineering consulting. In addition to its domestic operations, U.S. Steel also is involved in related activities in many foreign countries. This study is limited to the steel-producing operations. Present-day plants are located in the Pittsburgh, Pa. area; Fairless Hills in eastern Pennsylvania; Gary, Ind.; South Chicago, 111.; Lorain and Youngstown, Ohio; Fairfield, Ala.; Geneva, Utah; Baytown, Tex.; and Pittsburg and Torrance, Cal. Brief history o f the union. In 1936, the Committee for Industrial Organization (CIO) formed the forerunner of the present United Steelworkers of America (AFL-CIO) which was named the Steel Workers’ Organizing Committee (SWOC). This organization resulted from talks between the CIO and a craft-oriented union, the Amalgamated Association of Iron, Steel, and Tin Workers of North America (AAISTW—AFL), which had represented some U.S. Steel employees on an open shop basis since the company was formed. Composed of representatives of both the CIO and the Amalgamated, the SWOC was organized as an industrial union for all steelworkers and was designed to eliminate the Employee Representation Plans (ERP’s)—“inside” unions. These unions expanded rapidly throughout the steel industry following passage of the National Industrial Recovery Act of 1933, which specified the right of workers to organize. After 1936, even though the AAISTW, under terms of the agreement with the CIO, maintained its identity and technically all new members became its members, the SWOC, headed by Philip Murray, had the exclusive right to direct the unionization drive and to control revenues. Early company-union relations. The first contract, a recognition agreement, between a subsidiary of U.S. Steel Corp. (Carnegie-Illinois Steel Corp.) and the SWOC, was entered into on March 2, 1937 and a full agreement was signed on March 17. It referred to the SWOC as the agent of the Amalgamated. Within a short time, agreements also were reached with the four other steel-producing subsidiaries of the corporation. The SWOC continued to be referred to as the agent of the AAISTW until May 22, 1942, wnen, at a convention, the name was changed from SWOC to United Steelworkers of America (CIO) and the AAISTW merged with the new union. During this same period, the demise of the ERP’s was brought about by their questionable legality under the Wagner Act of 1935 and by the progress of the SWOC in organizing and in collective bargaining. Separate agreements with the steel-producing sub sidiaries were continued until these subsidiaries, in 1950, were merged into a single wholly-owned operating company under the name U.S. Steel Co. In 1952, the U.S. Steel Co. merged into the parent U.S. Steel Corp. to make the corporation primarily an operating company for the first time. Today, a single agreement for the steel-producing operations of U.S. Steel Corp. is negotiated. Before 1942, the collective bargaining agreements at U.S. Steel excluded all plant protection and clerical workers. Since that time, the contract has been extended to cover, in addition to the production and maintenance workers, hourly and salary rated nonconfidential clerical employees in steel plants. Confidential clerical employees and supervisors at the foreman level and higher are not covered; thus, data in the chronology do not reflect changes affecting these employees. The fabrication of steel products, coal mining and transport, and other operations carried on by the subsidiaries of U.S. Steel, that are covered by separate agreements, likewise are excluded from the scope of the chronology. Since this chronology begins with the 1937 agreements, provisions reported in effect then do not necessarily indicate changes from previous conditions of employment. “Industry” bargaining. During the 1940’s and early 1950’s, the union negotiated with each steel company individually, but in 1956, a committee of four (of whom two were U.S. Steel officials), represented the 12 major companies, known as the Coordinating Committee Steel Companies, in negotiations on major issues at a national level. Although companies making up the committee have changed on occasion, an industry committee has continued to bargain with the union to the present time. U.S. Steel is one of 10 firms currently represented by the industry committee. From 1959 when the Kaiser Steel Corp. left the Committee until 1968, 11 firms were in the group. However, Wheeling-Pittsburgh Steel Corp. and the CF&I Steel Corp. did not participate in the 1971 national talks; Wheeling-Pittsburgh has rejoined since 1971. The Steelworkers' contract negotiating procedures. In recent years, the Steelworkers have contended that, because of the proximity of the industries, contract negotiations with the steel, aluminum, metal container, and nonferrous industries should be coordinated. Before negotiations in these industries, the Steelworkers’ Wage Policy Committee drafts a Wage Policy Statement which contains the goals of the union in the forthcoming bargaining year. In recent years, these meetings generally have been held immediately after the USA Constitu tional Convention. Until 1966, the Wage Policy Committee was solely responsible for setting goals, recommending strikes, and ratifying or rejecting contract or strike settlements. At that time the union changed its bargaining structure by creating separate conferences for each of the major industries organized by the USA. The new conferences involve more rank and file members in the negotiations and allow separate groups to adapt the union-wide Wage Policy Statement to individual industry needs. The Basic Steel Industry Conference includes a representative, generally the president, from each of the local steel unions (whether or not they are involved in bargaining with the industry committee), plus district directors and presiding officers designated by the International president who acts as chairman. In addition, the conferences have assumed the afore mentioned role of the Wage Policy Committee concerning strikes and contract ratifications. A strike can be called by the conferences only if authorization is received in advance by a vote of the industry membership. A membership vote is not required for contract ratification; the conferences have full authority to ratify a new contract. Since the Basic Steel Industry Conference included locals not directly involved in the main steel negotiations, the 1966 Constitutional Convention established an 11-Company Negotiating Advisory Com mittee, composed of at least five local union representatives from each of the companies plus district directors and staff. The Committee was to serve as an advisor to those who had the responsibility for negotiating with such eleven companies. This group became active after approval of the International Executive Board on March 18, 1968. Also recommended in 1966 and put into effect in 1968 was the concept of “lead time.” It was felt that some of the pressures encountered in the national round of bargaining could be alleviated if company level talks on grievances and other local issues were initiated before the start of the main bargaining. Summary of contract negotiations January 1947-December 1951 An agreement dated January 13, 1947, established a new job classification program according to a War Labor Board directive of November 25, 1944. The plan was put into effect in February 1947 after almost 2 years of study and negotiation by the company and union. The agreements, dated July 16, 1948, amended and extended privisions of the previous contracts until April 30, 1950. However, 60 days before July 16, 1949, either party could serve notice on the other of its desire to negotiate (1) a general and uniform change in rates of pay and/or (2) life, accident, health, medical, and hospital insurance benefits. Negotiations were to start within 30 days after such notice. The agreements of July 1948 between U.S. Steel, other major steel producers, and the United Steel workers were reopened for discussion of wages and social insurance in May 1949. At the same time, the union requested the companies to negotiate on pensions. Failure of the parties to reach agreement led to the appointment of a Presidential fact-finding board to inquire into the dispute, and the board issued a report on September 10. When subsequent negotiations by the Steelworkers and various companies failed to produce agreement, a strike beginning October 1 idled most of the industry. Following conclusion of settlements with some other companies, the union and U.S. Steel reached agreement on November 11 on a noncontributory pension plan and a contributory insurance plan. Existing wage scales and wage related practices were continued without change. Basic agreements in the industry were extended to December 31, 1951, with a provision permitting either party to open the contracts for wage negotiations 60 days before December 31,1950. The agreement covering pensions and social insurance continued in effect until December 31, 1951. The company was free, thereafter, to take any action it deemed advisable for pension provisions. As long as no modification or change was made, the agreement would continue in effect until October 31, 1954. The steel agreements were reopened in October 1950 for wage discussions, somewhat before the formal reopening date. A wage increase settlement was announced on November 30. December 1951-June 1954 Negotiations for new contracts were started late in November 1951. After collective bargaining, mediation and conciliation had failed to resolve the differences between the major steel companies and the union, the President of the United States referred the dispute to the Wage Stabilization Board (WSB) on December 22, 1951. Strike action announced by the union for December 31 was delayed; a special convention of the union on January 4 then postponed such action for 45 days from the start of WSB hearings. On January 10, 1952 a special panel appointed by WSB opened hearings which were continued inter mittently until February 16. On February 21, the union deferred its strike deadline to March 23 to allow the board to study the case and make recommendations. Early in March the panel made its report. Recom mendations issued by the board on March 20 were accepted by the union on March 21 but not by the industry. After complying with a Government request to continue work until April 4, the union gave a 96-hour strike notice on that date, when further negotiations were unsuccessful. On April 8, the President seized the basic steel industry and appointed the Secretary of Commerce as Administrator, with power to set conditions of employment. Work was continued while the Government operated the mills. When a U.S. District Court ruled on April 29 against the validity of the seizure, the mills were turned back to private operation. Thereupon, the Steelworkers refused to work, claiming that “no contract and therefore no obligation to work for a private employer” existed. The mills were idle from April 29 until May 3, when the strike was called off at the President’s request. When the U.S. Supreme Court, on June 2, affirmed the order of the lower court against seizure, the workers again left their jobs. From then on, the union and the industry made several attempts to reach agreement, but it was not until July 24 that six large steel companies, including the U.S. Steel Corp., and the union reached an interim settlement. The major economic terms of the interim settlement, which the union membership ratified on the following day, provided for retroactive wage increases to be effective from March 1, 1952; paid holidays, shiftdifferential improvements, and a reduction in southern and other area differentials effective as of the end of the strike; and improved vacation benefits effective from January 1, 1952. The United States Steel Corp. and the union on August 23,1952 reached final agreement on all points that had been under discussion. The new contracts, dated August 15, 1952, were to remain in force until June 30, 1954, with one reopening, on wages only, on June 30, 1953. The agreements were reopened for wage negotiations at the end of April 1953. Negotiations began May 15 and a general wage increase was announced on June 12. In addition, the parties agreed to eliminate the remaining North-South wage differential by July 1, 1954. July 1954-June 1956 In 1954, negotiations for new collective bargaining agreements began on May 18, to replace the basic contracts scheduled to expire on June 30. On June 29, agreement was reached on a general wage increase, liberalized insurance and pension plans, and other contract changes. Existing insurance and pension agreements were not due to expire until October 31, but the parties agreed to discuss these issues at the same time as other contract issues to avoid two negotiating periods within a year.1 These agreements were to be in force from November 1, 1954, for 2 and 3 years, respectively. Under terms of the new basic contracts which remained in effect for a 2-year period starting July 1, 1954, provision was made for a wage reopening a year later. Actual negotiations under the reopening provision began on June 7, 1955, but were not concluded until after the midnight, June 30 strike deadline. The resulting suspension of work, the first general stoppage since 1952, was brief; agreement on a general wage increase, supplemented by increases in increments between job classifications, was reached by midmorning of July 1. July 1956-June 1959 Negotiations between the Steelworkers and a committee representing 12 basic steel companies for new contracts in the industry began on May 28, 1956. Earlier, the companies and the union had served 60-day notices terminating their contracts on June 30, 1956. In the initial meeting with the companies, the union presented a list of 23 proposed contract changes formulated by its Wage Policy Committee. Proposals included a “substantial” wage increase, premium pay for work on Saturday and Sunday as such, a supplemental unemployment benefit plan, an improved health and welfare plan, and a variety of other contract changes. Bargaining sessions were recessed at the end of May to permit the companies to study the union’s proposal. On June 15, the union rejected a counterproposal advanced by the companies. This proposal included a 5-year contract (reopenable only in a national emergency), with an annual general wage increase averaging 7.3 cents an hour; a cost-of-living provision; a supplemental unem ployment benefit plan; an improved insurance plan; and other improvements to become effective during the life of the contract. When it became evident that a settlement would not be reached by June 30, 1956, the expiration date of the agreements, unsuccessful efforts were made to extend the contracts wliile negotiations continued. The companies requested an indefinite contract extension (without provision for making new benefits retroactive), subject to a 72-hour termination notice; the union proposed a 2-week contract extension, with new benefits retroactive to July 1. The parties failed to resolve their difference on contract extension. On July 1, a work stoppage idled most of the industry and bargaining was discontinued. With the assistance of the Federal Mediation and Conciliation Service, bargaining was resumed in midJuly, and a memorandum of agreement with U.S. Steel Corp. and 11 other basic steel producers on new 3-year contracts, subject to union ratification, was signed on July 27. However, a return to work was delayed until early August to allow the parties to work out details (e.g., for supplemental unemployment benefit plan provisions and incentive inequity problems) and to sign individual contracts. The settlement provided for a general increase in basic rates averaging about 9.5 cents an hour (about 10.5 cents in hourly earnings, including incentive pay), effective August 3, 1956; deferred increases averaging 8.3 cents an hour (about 9.1 cents when incentive pay was included), effective on July 1 of both 1957 and 1958; and a semiannual cost-of-living escalator formula. Changes in supplementary benefits, effective at various dates throughout the contract period, included a 1 Details putting into effect some of the decisions reached in June regarding insurance were incorporated in an agreement dated September 1, 1954. supplemental unemployment benefit plan, premium pay for nonovertime Sunday work, an additional paid holiday (Good Friday), increased pay for holiday work, an improved insurance program, increased pension benefits, increased shift premiums, additional vacation pay after specified periods of service, and pay for jury duty. The agreement also established joint committees to review job classifications and the existing wage incentive system. The agreements, which were to be in force from August 3, 1956 through June 30, 1959, made no provision for wage reopenings—the first long-term agreements without reopenings in basic steel’s collective bargaining history. (Pension and insurance agreements were to be in force through October 31, 1959.) July 1959-June 1962 Formal negotiations between the U.S. Steel Corp. and the USA for revisions in the contracts that were to terminate on June 30, 1959, began on May 5, 1959. Agreement was not reached until January 4, 1960, 2 days before submission to the President of the final report of a Board of Inquiry appointed by him under the Labor Management Relations Act of 1947. In the interim there had been a 116-day strike, suspended by issuance of an injunction under the national emergency provisions of that act. Most of the company’s bargaining was conducted jointly with 11 other major steel producers through a committee of four representing the companies. In April, before the first meeting of the parties’ representatives and again when formal negotiations opened, the companies had proposed the continuation for 1 year of conditions under the existing contracts without change except for elimination of future cost-of-living allowances. The union proposed contracts, that within the framework of the industry’s price structure, productivity, and profits, would “protect real wages and contain increases in wage rates and other benefits.” On May 5, the union made a detailed statement to serve as a basis for discussion. On June 10, the companies proposed an 8-point program calling for contractual changes including modification of “ambiguous and restrictive language” so as to enable management to make operating improve ments, stronger penalties for those engaging in unlawful strikes, recognition of the functions of management to develop wage incentives and establish sound standards, greater flexibility in changing work schedules, elimina tion of overlapping and duplication in existing benefit programs, simplification of the procedures for establishing seniority units, scheduling of vacations throughout the year along with changes in eligibility provisions, and clarification of contract language. The companies’ position on economic questions remained the same as it had been in April. The proposal was rejected by the union. When it became evident that a settlement would not be reached by June 30, efforts were made to extend the contracts while negotiations continued. The companies requested an indefinite contract extension, without provision for making any changes retroactive, subject to a 10-day termination notice. An extension to July 15, with new benefits retroactive to July 1, was proposed by the union. Following the suggestion of the President of the United States that negotiations continue without interruption of production, the union proposed, and the industry agreed to, a 2-week extension of the existing contracts (without any commitment on retroactivity) through July 14. During the truce period, the union made a 2-year contract proposal calling for wage and “fringe” improvements. The details were not made public and the proposal was rejected by the companies. In a press release on July 11, the companies expressed willingness to negotiate improvements in the pension and insurance plans in the first year of a 2-year contract and a “modest” increase in wages in the second year, conditioned on union acceptance of the industry’s “8-point” program. Most publicized of the industry’s “8-point” proposal was revision of Section 2-B of the contracts, entitled “Local Working Conditions,” to give management “latitude to change work rules in the absence of changes in basic conditions. 2 Management already had the right to make such changes when the basis for the existence of the local working conditions was changed (e.g., when technological changes were made). The union contended that these contractual changes would permit the companies unilaterally to eliminate benefits and to make changes in working conditions already provided under local agreements and practices. The parties met regularly during the truce period, but made no progress toward agreement. Developments during the strike. On July 15, a work stoppage idled over four-fifths of the industry, including the U.S. Steel Corp., and despite the assistance of the Federal Mediation and Conciliation Service, negotiations ^ Bargaining over this as well as over issues of union security, seniority, etc., is outside the scope o f the chronology series; this and related issues have been mentioned in the introduction only because of their importance in the contract dispute. broke off on September 25. On October 1, the union proposed a 3-year contract, the details of which were not made public, and the companies made a 2-year contract proposal. The company offer, their first to contain specific proposals for increased “economic” benefits, included increased cash contributions to the Supplemental Unemployment Benefit (SUB) fund and improved insurance and pension benefits in the first year, and an increase in wage rates in the second year.3 The offer also provided for elimination of the cost-of-living clause and required union acceptance of several provisions of the “8-point” program. The union rejected the offer. On October 9, the President, by Executive Order issued under the Labor Management Relations Act, created a Board of Inquiry to report on the issues in dispute. During October, while the Board was discussing the issues with the parties and conducting public hearings, the parties made new settlement offers. The union’s contract proposal of October 12 included wage-rate increases and changes in supplementary benefits during each year of a 1-, 2-, or 3-year contract. The revised offers made during the hearings left the parties far apart. The union’s next proposal, on October 15, was for a contract, to terminate June 30, 1961, with general wage increases ranging among job classes from 7 to 13 cents, effective July 1, 1960; a maximum permissible increase of 3 cents in the cost-of-living allowance with no January 1960 adjustment and with a waiver of the 2 cents an hour already due under the existing formula, which the union stated was for the purpose of helping pay for assumption by the company of the employees’ insurance contributions. The proposal would also have required, effective November 1, 1959, company payment of all costs of an improved insurance plan, including increased life insurance and sickness and accident benefits and insurance coverage during layoff; liberalized pension benefits, including an increase from 30 to 40 in the years of service to be credited for minimum benefits, an increase in the minimum benefit per year of service, an increase in pensions of those already retired, and a special retirement payment equal to 3 months’ full pay. On October 17, the companies offered a 3-year contract conditioned on amendment of the basic labor ^ Estimates of employment costs and values of company and union offers are detailed in the Report to the President submitted by the Board of Inquiry under Executive Orders 10843 and 10848, October 19, 1959, and the Final Report to the President, The 1959 Labor Dispute in the Steel Industry, submitted by the Board of Inquiry under Executive Order 10843, January 6, 1960. Excerpts from the Final Report were published in the Monthly Labor Review, March 1960, pp. 262-269. agreements in regard to work rules. The new company proposal included increased minimum pensions for both normal and disability retirement; liberalized early retirement provisions; company-paid comprehensive major medical expense insurance in lieu of existing contributory hospitalization and surgical coverage; other insurance benefit increases; increases in wage rates ranging from 6 cents an hour for the lowest job class to 12 cents for the highest job class, effective October 1, 1960, and again on October 1, 1961; and a maximum total cost-of-living adjustment of 20 cents, including the existing 17 cents. The allowance would increase only if and to the extent that the allowance as computed under the formula of the previous contract rose more than 6 cents by October 1, 1960, and more than 12 cents by October 1, 1961. This October 17 offer also included increased cash contributions to the SUB fund, improved maximum financing, replacement of the canceled contingent liability under this plan by a “financial factor” that would assure a benefit level of 100 percent at the beginning of a new agreement, and advance contributions to assure availability of cash for benefit payments. The Board of Inquiry’s report to the President, dated October 19,4 concluded that the “major roadblocks to settlement are in the general areas of ‘economics’ and ‘work rules’.” Based on the Board’s report that a settlement did not seem likely, the Government, on October 20, sought an injunction under the national emergency provisions of the LMRA requiring the Steelworkers to return to their jobs for 80 days.5 After court stays during an appeal by the union, the injunction went into effect on November 7, when the U.S. Supreme Court decided that the 116-day “strike imperils the national safety.” During the interval between the injunction and December 28, when the Board again held hearings, the parties continued to bargain. Further offers were made by the industry on November 15, and by the union on December 17. The Board of Inquiry reconvened on December 28 to hold hearings on which to base its report to the President on the current position of the parties, the companies’ last offers, and the efforts that had been made for settlement.6 Testimony and exhibits presented by industry spokesmen indicated some revision of their October 17 offer of a 3-year contract. The provision for cost-of-living adjustments was restated to specify that no increase in the existing allowance would be made unless ^ For substantial excerpts from the report, see Monthly Labor Review, December 1959, pp. 1333-1341. ^ On October 26, 1959, the union had concluded an agreement with the Kaiser Steel Corp. See Monthly Labor Review, December 1959, pp. 1345-1346 and 1378-1379. the BLS Consumer Price Index rose more than 3.1 index points between September 15, 1959, and August 15, 1960, or more than 3.1 index points between August 15, 1960, and August 15, 1961, and to permit a maximum increase in the allowance of 4 cents in each year rather than the total 3 cents of its October 17 proposal. The company withdrew its proposal to substitute a company-paid comprehensive major medical benefit plan for existing contributory hospital and surgical benefits but offered to assume the full cost of the contributory basic life insurance and sickness and accident benefit programs. It also offered to increase from 30 to 35 the number of years of service to be counted for minimum pension benefits. The union proposals reinstated demands it had omitted from its October 15 offer, including extension of hospitalization and surgical coverage to retired employees and dependents at no cost to them, and continuation of the provisions for future cost-of-living adjustments without limitation on the amount of possible adjustment. The Board concluded that “although the companies had improved their offers somewhat, the parties’ positions as stated to this Board were farther apart than they were at the time of the Board’s earlier report.” On December 24, the union petitioned the court that had issued the Labor Management Relations Act injunction to require the companies to pay the 4-cent-an-hour cost-of-living adjustment that would become due the first pay period in January 1960 under the previous agreements. The court decision was not issued until late in January,7 after agreement had been reached by the parties. The final settlement On January 4, 1960, while the Board of Inquiry was preparing its report, a memoran dum of agreement with the union was signed by the U.S. Steel Corp. and 10 other basic steel producers. The agreement followed the recommendations of the Vice President and the Secretary of Labor, who had been engaged in mediation with the parties for several weeks.8 The new settlement, to be in force through December 31, 1962,9 on pension, insurance, and supplementary unemployment benefits, and through June 30, 1962, on ^ As required by the Labor Management Relations Act, the report was to be submitted 60 days after the injunction became effective. Within 15 days after the report was submitted, the National Labor Relations Board was to take a secret ballot of the employees of each employer involved in the dispute on the question of whether they wished to accept the final offer of settlement made by their employer. ^ In officially ending the injunction on January 26, the court ruled that workers who had resumed work under the injunction, would be entitled to the cost-of-living adjustment “unless new agreements were entered into providing otherwise.” other matters, provided for wage increases averaging an estimated 9.7 cents an hour (including effects on incentive pay but excluding indirect effects on overtime, holiday pay, and other elements of employment cost) effective December 1, 1960, and 8.9 cents an hour effective October 1, 1961, at U.S. Steel plants.10 The existing 17-cent cost-of-living allowance con tinued in effect and a limit was established on further increases in the allowance. The formula contained in the previous contract was continued but the allowance could be increased on only two dates: December 1, 1960, and October 1, 1961, and the maximum increase permitted was to be 6 cents by October 1, 1961, of which no more than 3 cents could become effective on December 1, 1960. There was, however, provision to use part or all of any increase in the cost-of-living allowance to offset costs of insurance above a specified amount. Effective January 1, 1960, insurance and pension provisions were liberalized. All costs of the formerly contributory basic insurance plan were assumed by the companies; life insurance and sickness and accident benefits were liberalized; hospital and surgical benefits were continued up to 6 months for laid-off employees with 2 years or more of continuous service at date of layoff and life insurance for all laid-off employees was continued for up to 2 years (from 6 months), with employees paying 60 cents per month per $1,000 for life insurance after the first 6 months of layoff. The provision for retired employees to convert their hospital and surgical benefits to an individual policy was continued and a new provision was added permitting them to authorize deduction from their pension checks of the premiums required for such coverage. Pension changes included an increase in the maximum number of o ° The Secretary, as a part of his intensive efforts throughout the strike to bring about a settlement within the framework of free collective bargaining, had assumed responsi bility within the administration for keeping the President and the people advised. Shortly after the strike began, he had announced that he was conducting two types of fact finding related to the strike: a day-to-day collection of information on the effect of the strike on the economy, to keep the President “advised periodically as to the facts” ; and an “exhaustive study in depth of collective bargaining in the steel industry . . . to determine the underlying causes” of the frequent recurrence of steel strikes. In addition, in mid-August, he had issued a booklet of Background Statistics Bearing on the Steel Dispute (reproduced in the October 1959 issue of the Monthly Labor Review, pp. 1089-1107), which he said “may serve to indicate the area which exists for a settlement in which the public’s interest is taken fully into account.” ^ Negotiations on pensions, insurance, and SUB could be opened on June 30, 1962. Cost estimates for the basic steel industry as a whole were 9.4 cents in 1960 and 8.7 cents in 1961. years of service to be credited in computing minimum pensions, an increase in minimum monthly benefits per year of service, liberalization of the formula for pensions above the minimum, increased minimum disability pensions, a special initial lump-sum payment on retirement, liberalization of early retirement eligibility provisions, and provisions governing breaks in service. The pensions of those already retired were increased by amounts up to $5 per month. The contingent liability of the companies to the Supplementary Unemployment Benefit fund which had accumulated under the previous agreement and which had been canceled on July 14, 1959 under the terms of that agreement, was restored effective November 30, 1959. The Supplemental Unemployment Benefit agree ment, providing a 3-cent cash contribution and 2-cent contingent liability, was renewed as of January 1, 1960. Further negotiations on SUB, provided in the memoran dum of agreement, resulted in no other changes in the plan or in the prior agreement. A joint Human Relations Research Committee was established to study and recommend solutions of mutual problems relating to equitable wage and benefit adjustments, job classification, incentive pay, protection of long-service employees against layoffs, medical care, and other problems. Questions of local working conditions were to be referred to a joint study committee headed by a neutral chairman, which was to report by November 30, 1960. July 1962-May 1965 In contrast to difficulties experienced in reaching agreement after expiration of the 1956-59 contract, the U.S. Steel Corp., together with 10 other major steel companies and the USA initialed a memorandum of understanding on March 31, 1962—3 months before the 1960 agreement was scheduled to expire.11 Unlike the 1959-60 negotiations, there was virtually no publicity until final agreement had been reached. Much of the success of this approach to collective bargaining was attributed by the parties to discussions of major issues by the joint Human Relations Research Committee, established by the 1960 agreement. Discussion between the 11 companies and the union began in Pittsburgh in mid-February12 after President John F. Kennedy had asked that agreement on contract terms be reached by March 1. During the opening days, the Human Relations Research Committee reviewed the work of its subcommittees. Members of the committee who declined to discuss details of the meetings stated that they could arrive at “sound decisions as soon as possible” by avoiding public debate. After more than 2 weeks, meetings were recessed on March 2. Specific proposals were not disclosed, but the companies’ chief negotiator said that employment security had been the major subject of discussion and that the cost of the proposals the union considered to be minimum would be so great as to reduce employment security. The union felt continued talks at that time would serve no useful purpose and suggested that negotiations be recessed until sometime after May 1. At the request of the President, talks were resumed on March 14. Again the parties declined to discuss details of the meetings. On March 28, however, the companies’ chief negotiator said that the parties, working within the Human Relations Research Com mittee, had defined the area within which they hoped to reach agreement. Three days later, the parties initialed a memorandum of understanding. The memorandum, ratified on March 31, 1962 by the union’s 34-member executive board and its 170-member wage policy committee, became effective July 1, but did not provide for a wage increase during the first year of the 2-year agreement. Contract improvements which emphasized job and income security included liberalized vacation benefits, a new savings and vacation plan designed to spread work and encourage early retirement, changes in pension benefits also designed to encourage retirement, and improved supplemental unemployment benefits (SUB). The agreement suspended the cost-of-living escalator clause; the accumulated cost-of-living allowance was continued but not incorporated into the wage structure. Until maximum financing was reached, the settlement obligated the companies to pay to the SUB plan, starting July 1, 1962, an additional 4.5 cents per man-hour worked. This payment brought the total liability to 9.5 cents.13 Regular weekly benefits were liberalized and substantial changes were made in the table for the reduction of benefits according to the financial position of the SUB plan. The greatest change allowed payment of full benefits when the financial position was as low as 35 percent; previously, reduced benefits had been paid when the position fell below 75 percent. The SUB plan, 11 The 11 major steel companies that initialed memorandum were parties to the settlement of 1960. the 12 This was the earliest date, relative to the scheduled expiration of an existing contract, on which collective bargaining had started since the first agreement was reached between a United States Steel Corp. subsidiary and the union in March 1937. 12 Of this total, the company was to pay up to 4.5 cents directly into the fund; the remaining 5 cents was to be a contingent liability. When the total amount (fund plus contingent liability) equaled the previous maximum financing figure, all obligations were in the form of contingent liability. which was liberalized in other ways, added short-week benefits and extended benefits to laid-off workers who became disabled, after their sickness and accident insurance coverage had been discontinued. A moving allowance was established for long-service employees who accepted job transfers under an interregional preferential hiring program. Minor changes liberalized holiday pay and increased regular vacations for workers with 3 but less than 5, 10 but less than 15, and 25 years or more of service. A savings and vacation plan was established to provide supplemental vacation-retirement benefits. The new plan was to be financed by company contributions of 3 cents a man-hour, effective July 1,1962; additional amounts—up to 4.5 cents an hour—could be transferred to the plan from the SUB finances, to the extent that this money was not necessary to maintain maximum financing. The program, effective until December 31, 1965, provided retirement benefits based on retirement units (one unit for each 5 years of continuous service before January 1, 1961) to workers with continuous service for pension purposes, including employees who retired without a pension after age 65 because of insufficient service for pension eligibility. To encourage retirement, eligible employees 65 years old and over would have their retirement benefits under the new program reduced by 10 percent for each quarter year they continued to work after June 30, 1963, or after they reached 65, whichever was later. Thus, these retirement benefits would be eliminated for such employees who continued to work for 2Vi years beyond retirement age. The plan also credited—to the extent of the funds remaining each quarter—one vacation unit to employees for each 2 years of service after December 31, 1960, but before age 65. These benefits, available according to seniority, could be used for vacation or deferred until the employee was retired or incapacitated by illness or other hardships. Effective with retirements on or after June 30, 1962, the agreement liberalized eligibility for employees who had a break in service because of disability, permanent plant or departmental shut-downs, or retirement under mutually satisfactory conditions. Revisions in eligibility requirements for early retirement provided annuities to employees 55 years old or over with at least 15 years of service when their age and years of service totaled 75 years; for other eligible employees, age and years of service (also with a minimum of 15 years of service) had to total 80 years. The application of the $80 offset against social security for those retiring early under the basic 1-percent formula was deferred until they reached age 65 or became eligible for disability benefits under social security. The Human Relations Research Committee was continued as the Human Relations Committee. It was to study problems in the general area of employment stabilization, such as subcontracting, overtime and vacation scheduling, and work assignments. Committee recommendations were due by the end of the first year, with any unresolved issues subject to bargaining on or after May 1, 1963. The 1962 agreement was to remain in effect through June 30, 1964, but could be terminated after that date on 90 days’ written notice. On or after May 1, 1963, either party could serve 90 days’ notice to open negotiations on wage rates, insurance, or pensions. The savings-vacation and SUB plans were to remain in effect through December 31, 1965, unless either party gave 90 days’ notice on or after April 1, 1965, to terminate these plans. In mid-March 1963, the parties began informal talks under the reopening provision. The union announced that the joint Human Relations Committee would extend the subject matter of its discussions to resolve problems “within the next few weeks.” Both parties emphasized that the committee was not negotiating but merely discussing all matters on which the contract could be reopened on May 1. Without formal contract reopening, the parties announced on June 20 that agreement had been reached on contract revisions to be effective August 1. For the second consecutive year, wage rates were not changed, but new provisions were adopted to improve income and job security. A memorandum of agreement, signed by the parties on June 29, called for extended “sabbatical” vacations for workers with the highest seniority and for improved insurance benefits. The new extended vacation plan, effective January 1, 1964, increased contributions to the savings and vacation plan by 9.5 cents a man-hour and brought the total contribution to 12.5 cents an hour for a 5-year period. Limitations were placed on the amounts that could be diverted from the SUB finances. Employees in the upper half of the seniority list (the senior group)14 received a total of 13 weeks of vacation once in every 5-year period. (In other years, they received their usual vacation.) Provision was also made for an additional week’s vacation pay, to be credited in cycles; the length of the cycles depended on the level of the savings and vacation I 4 At the time the extended vacation provision was negotiated, the senior group at the U.S. Steel Corp. included workers with approximately 17 years of service. finances. Employees in the junior group participated in each cycle; those in the senior group, only in the first and cycles subsequent to the third. The level of the savings and vacation finances would determine whether a fourth cycle was reached. With cancellation of the provision in the 1962 agreement for 1 week’s vacation pay for each 2 years of service after January 1961, workers who had not received a week’s pay under this provision were the first to benefit under the new arrangement. Hospitalization, weekly sickness and accident benefits, and life insurance were liberalized. The 1963 agreement, covering about 105,000 U.S. Steel Corp. employees in steelmaking operations, was to be in effect through May 1, 1965, and could be terminated after that date on 120 days’ written notice. Notice of intent to terminate after 120 days could be served on or after September 3, 1965, for the SUB and pension plan and on or after September 3, 1968, for the savings and vacation plan. May 1965-July 1968 Well before contracts with the U.S. Steel Corp. and other major steel producers expired on May 1, 1965, the USA adopted guidelines for a collective bargaining program at its 12th Constitutional Convention at Atlantic City, N.J., in September 1964. The bargaining resolution approved by convention delegates emphasized a program of greater prosperity, dignity and justice on the job, and total job security. Included in the category of total job security were demands for continuation of income in periods of economic downswing, illness, accident or disability, and an adequate insurance income for the family of a deceased steelworker. In early December, the union’s Wage Policy Committee met to formalize the demands to be presented to company negotiators on December 15, 1964. The broad collective bargaining program included demands for a substantial wage increase, incorporation of the remaining cost-of-living allowance into base rates, and establishment of a new cost-of-living clause, additional paid holidays, longer vacations, and increased overtime and premium pay. Other demands included liberalization of health insurance and pension plan benefits. Additional nonwage demands were for improved provisions for work scheduling, safety, grievance procedure, discipline, and vacation scheduling. Many of these demands related to local plant problems. After presentation of demands, the parties met on a company-by-company basis until December 18, when a recess was called for the holidays. Negotiations resumed in early January but were suspended on January 7, 1965, because of the union presidential election scheduled for February 9. Bargaining resumed shortly after the election although unofficial returns indicated defeat of the incumbent president. He led the union in the presentation of a revised set of demands to company negotiators on March 17. These demands, which the union called minor, included a streamlined grievance procedure or the right to strike on important grievances, stronger controls on contracting out of work and elimination or change of job duties because of technological change, penalty pay for employees who did not work because of violations of scheduling or posting provisions in the contract, and inclusion of penalty pay and holiday pay in the computation of overtime. These were to be followed by major demands of the union. Negotiations on working conditions at the plant level continued until March 28 and 29, when the union presented its major demands which included substantial increases in wages and benefits. Key demands were a wage increase of 12.5 to 28 cents an hour in the first and third years of the agreement, plus an additional 10 percent for workers not covered by an incentive program, a workweek of 32 hours every fourth week, double time for overtime, retirement benefits more than double the existing monthly benefit, and an increase in the maximum duration of SUB benefits beyond 52 weeks. Company negotiators countered with a 3-year wage and benefit package estimated by them to be equal to the 2 percent annual rate of productivity gain experienced during the 1957-63 period. In mid-April, the company proposed an unusual type of interim agreement to end the existing strike threat. Union negotiators favored some type of settlement because it would allow the union time to resolve the uncertain political situation within the union.15 On April 28, the parties formally signed an interim agreement to extend the contract to August 1, when the union could reopen the contract and strike 30 days later. During the extension, the company was to accrue a total obligation of 11.5 cents for each man-hour worked. When the parties agreed on a new contract, the accruals under the extension were to be used for wages or benefits agreed to by the parties. The union’s Wage Policy Committee approved the extension. Negotiations resumed June 2, led by the newly ^ At this point apparently I.W. Abel had defeated incumbent president David J. McDonald, but the election results were not official and the incumbent president’s term would not expire until June 1, 1965. It appeared that a political struggle might develop, with McDonald asking for a recount of the ballots. installed president of the union. Both parties expressed dissatisfaction a few days later when the President of the United States suggested that wages could be increased by 3 percent without raising steel prices. The President also suggested a cut in steel prices. In the 2 months that followed, the parties remained far apart on nearly all issues. At the end of July the union served notice of its intention to strike September 1, if agreement was not reached by that date. On August 24, the company offered a 35-month compromise settlement with improvements it valued at 3 percent per year. Union negotiators rejected the offer. The union had been attempting to pattern its demands after the aluminum industry agreement. Two days after the union rejected the company offer, the President telephoned chief negotiators of the company and union. Once again he appealed to the parties to reach a responsible noninflationary settlement. One day before the union intended to strike, the President called the parties to Washington, D.C. After meeting with the President, the parties agreed to extend the strike deadline 8 days. On August 28 union demands were modified, and on September 1, the company added to its previous offer. Agreement on a 35-month contract was reached September 6, 1965. Improvements included a wage increase of 10 to 19 cents an hour in the first year, 6 to 12 cents an hour in the third year, and incorporation into base rates of the lS^-cent-an-hour allowance remaining from the previous cost-of-living escalator. After-retirement insurance and sickness and accident benefits for all employees were increased as were days of hospital benefits for employees with 10 years or more of service. Eligibility requirements for hospital-surgicalmedical benefits for dependents were liberalized. Major improvements in pension benefits included a minimum pension benefit of $5 a month per year of service up to 35 years, and a special early retirement supplement for certain retirees. An employee could retire at any age with a full pension after 30 years or more of service, and survivors options were liberalized. Funds accumulated as a result of the extension agreement of April 28, 1965 were distributed to employees in December 1965 as a lump-sum cash payment. The allocation was based on hours worked plus credit for apecified hours not worked but compensated during the period of that agreement. The contract was to remain in effect until August 1, 1968, except for the pension, insurance, savings and vacation plan, and the supplemental unemployment benefit plan. These provisions were to continue until 120 days after written notice by either party to terminate served on or after September 3, 1968, but subject to renegotiation at the same time as the basic agreement. August 1968-July 1971 Early in 1968, bargaining began between the USA and the 11 major companies in the basic steel industry whose contracts expired August 1, 1968. The negotia tions, conducted on an 11-company basis were characterized by three new procedures: (1) Involvement of the Basic Steel Industry Conference, as authorized by the union’s 13th Constitutional Convention of 1966; (2) inclusion in negotiations of an Eleven Company Negotiating Advisory Committee, set up by the union’s International Executive Board; and (3) lead time added for the resolution of local issues. The 800-member Basic Steel Industry Conference met for the first time March 21. The conference encompassed local unions not directly involved in bargaining as well as representatives of bargaining units in the 11 major companies, because all USA members in the Basic Steel Industry ultimately were affected by negotiations conducted with the 11 companies in the Coordinating Committee Steel Companies. Since the Basic Steel Industry Conference included non negotiating as well as negotiating locals, a separate advisory committee was established on March 18 con sisting of worker representatives from the 11 companies negotiating as a group. The 200-member Eleven Com pany Negotiating Advisory Committee, which was com posed of at least five local union representatives from each company plus district directors and staff, repre sented a cross section of thought and facilitated greater participation in the negotiations. The committee met for the first time during the June 3 bargaining talks. The third innovating factor in the negotiations was the implementation of lead time for local bargaining, equal to the time provided for the negotiation of contract issues. Plant-by-plant discussion of local matters began April 15 and incentive pay assumed a position of primary importance. At issue were the distribution and levels of incentive pay and extension of incentives to cover a greater proportion of workers. Other issues under consideration were working conditions, safety programs, and seniority. From May 15-31, discussion of unresolved local issues was continued on the company level. Negotiations of the basic economic issues began in New York City on June 3; both sides presented general background material for bargaining. Guarded by a news blackout by both sides to facilitate open bargaining and insure secrecy, bargaining was moved to the headquarter cities for each company where it continued on a company basis from June 10-23. Incentive pay was discussed widely and other issues were added, including the review and revision of job classifications to reflect technological change and earnings protection for workers displaced or demoted as a result of automation. Also discussed were vacation bonuses and the increasing of supplemental unemployment benefits to 75 percent of weekly earnings. Secret negotiations then were centered in Pittsburgh for further discussion of economic terms but it was assumed the union was seeking a settlement comparable to those won in the can and aluminum industries. As negotiations continued into the latter part of July, neither side seemed to want a strike or government intervention; yet neither side appeared willing to sacrifice any ground, particularly on incentive pay. Upon the recommendation of the Basic Steel Industry Con ference and the Eleven Company Negotiating Advisory Committee, a strike vote was taken on July 23. Union officials were authorized to call a strike at the expiration of the contracts at midnight, July 31. As a result of the threatened strike and previous strike-hedge buying, several plants began the costly shutdown process to protect their mills. As both sides prepared for a possible strike, the Basic Steel Industry Conference reached a settlement with the companies on the evening of July 30; some specific details and wording were to be worked out the following day. The contract between the U.S. Steel Corp. and the USA, which was signed on August 3, 1968, was retroactive to August 1. The pact provided general wage increases of 20 cents an hour in 1968, and deferred increases of 12 cents an hour for both 1969 and 1970. Also added was a total of 1 cent an hour over the 3 years of the contract in widened increments between job classifications. In addition, a joint committee was established to review and set guides for wage incentives. The committee report was due August 1, 1969, or if agreement could not be reached, the issue was to be submitted to arbitration. In either case, according to the findings of the deciding body, employees working on jobs not previously covered by incentives but found to be deserving of such, would be paid 10 cents an hour worked, retroactive to August 1, 1968. Improvements in the pension plan provided increased monthly allowances and initiated a surviving spouse’s benefit. For future retirees, minimum monthly pensions were increased to $6.50 for each year of continuous service up to 35 years. For pensioners whose benefits were calculated on the 1-percent formula, the $60 social security deduction was eliminated. An added feature of the plan was the surviving spouse’s benefit, providing monthly payments to the surviving eligible spouse of an employee or certain retirees if specified qualifications were met. Benefits were continued in reduced amounts after the surviving spouse reached 62. All changes in the pension plan were effective July 31, 1969, and, except for the surviving spouse’s benefits, also were applied to those retiring on or after July 31, 1968, effective August 1, 1969. Pensioners retiring before July 31, 1968, received a monthly pension increase of $10. Weekly supplemental unemployment benefits were increased from 24 to 26 times an employee’s average straight-time hourly earnings, effective January 1, 1969. Maximum benefits for single employees were increased to $52.50 if unemployment compensation was received, and $80 in the absence of unemployment compensation. In addition, a plan was to be developed to protect the level of earnings of employees, particularly those dis placed by technological advances. The earnings protec tion plan, initiated on August 1, 1969, provided a quarterly income benefit equal to th at amount necessary to maintain at least 85 percent of a:i employee’s average straight-time earnings of the previous quarter, if he was subjected to a wage decrease. The plan was financed by a company obligation of not more than 2 cents an hour worked, to the extent that such benefits did not interfer with the regular provisions under the SUB plan. Effective August 1, 1968, hospitalization benefits were changed to provide full payment for treatment in an intensive care unit and private room allowance equal to the most common semiprivate room rate. Increased life insurance and a new major medical plan effective August 1, 1970, were also part of the new settlement., The $1,000 increase in life insurance was applicable to active employees. The major medical plan provided benefits of 80 percent of the covered expenses after a deduction of $50 an individual and $100 a family each year. The maximum benefit was $10,000 a year for each individual and a lifetime maximum of $20,000 for a single illness or injury. Improved benefits were provided for both regular and extended vacations. Beginning January 1, 1969, junior employees—those in the bottom h alf of the seniority list—were granted an extended vacation of 3 weeks, once every 5 years, in addition to their regular vacation. The 13 weeks’ extended vacation for senior group employees was extended for another 5-year period. For those years in which an employee did not receive an extended vacation, he was given a $30 vacation bonus for each week of vacation. On the other hand, the company won a new method of vacation pay calculation and the right to schedule vacations throughout the year. Other provisions included increased shift differentials of 10 cents for the afternoon shift and 15 cents for the night shift, effective August 1, 1970. The day before Christmas was added as the eighth paid holiday, beginning in 1970. Also effective in 1970, employees were granted up to 3 days’ funeral leave when a death occurred in the immediate family. Effective August 1, 1968, employees subpoenaed as witnesses were to be paid according to the jury-duty pay provision. The agreement, which covered approximately 107,000 employees of U.S. Steel was to remain in effect until 60 days after either party had given written notice of termination, but in any event would not terminate before August 1, 1971. The supplemental unemploy ment benefit plan, insurance plan, and pension plan were to remain in effect until December 31, 1971, or for 120 days after notice of termination served by either party on or after September 3, 1971. The savings and vacation plan was to remain in effect until December 31, 1973, or 120 days after either side served notice of termination on or after September 3, 1973. As agreed to during the negotiations, an 11-company joint committee began to study problems surrounding the incentive pay issue, including the amount of pay and the extent of coverage. The union reportedly was seeking incentive pay for all workers to include a bonus rate floor of 35 percent for direct incentive production workers and 26% percent for indirect workers. On the other hand, the industry, reportedly, was seeking to limit the extent of incentive coverage and the level of incentive earnings. No agreement had been reached by mid-June 1969, and the issue was submitted to arbitra tion. The 3-member arbitration panel reviewed the issue, and made its award on August 1, 1969. According to the decision of the panel, each company was to provide incentive coverage to at least 85 percent of its production and maintenance employees on a companywide basis, and not less than 65 percent of such employees in each plant. The effect of the decision, depending on the existing level of coverage, would vary from company to company. Companywide coverage at U.S. Steel was about 80 percent at the time. The award defined three categories and the percent of each category above the contractual incentive earnings opportunities of the incentive jobs: Namely, direct, 35 percent; indirect, 23 percent; and secondary indirect, 12 percent. Implementation of the award, decisions about specific jobs to be covered under the new definitions, and upward and downward adjustments of existing incentive earnings were to be carried out on a company and plant basis. To comply with the 1968 agreement, employees whose nonincentive jobs were reclassified as incentive under the award were to be paid 10 cents for each hour worked on such jobs from August 1, 1968, to the actual date of incentive coverage. Each company was to submit a proposal to implement the award by November 1, 1969. The unions had 60 days thereafter to submit a counterproposal, followed by negotiation and arbitration, if necessary. The award was to be imple mented at the “earliest practicable date.” Although the panel set no specific deadline, progress was slow. Disagreement centered around interpretation of the language of the arbitration award. The company contended the minimum percentage guides for incentive coverage handed down by the panel were goals rather than minimum requirements. The union rejected a company offer to raise incentive coverage to 82.9 percent on a companywide basis; 15 plants were left below the 65-percent mark. Negotiations continued throughout the spring. As gains were made in many companies—Inland Steel was the first to comply with the arbitrators’ award in May—an impasse remained at U.S. Steel. The issue again was submitted to arbitration at the end of May and a second award, limited to U.S. Steel, was made June 8, 1970. The company was given until June 23 to submit a realistic proposal, and both parties were to reach full agreement by July 20. No settlement was reached, however, and the issue was resubmitted for a third round of arbitration in August. The third award, announced November 18, 1970, extended incentive coverage to over 90 percent of the employees at U.S. Steel. The awards granted coverage to an additional 10,000 employees. August 1971-April 1974 On March 29, 1971, the Steelworkers’ Basic Steel Industry Conference met in Washington, D.C. to examine the overall Wage Policy Statement drafted by the union’s Wage Policy Committee in light of local steel industry problems and the agreement just concluded in the metal container industry. Although the conference did not draft a separate steel statement, it did authorize a committee composed of the chairman, secretaries, and technicians of the union’s negotiating committees to draft for forthcoming negotiations proposals that reflected the Wage Policy Statement and to prepare a transcript of suggestions made by delegates during the Basic Steel Conference. As a prelude to the 1971 negotiations, union representatives of the basic steel industry had attended the 15th Constitutional Convention of the Steelworkers (USA) held September 28-O ctober 2, 1970, in Atlantic City, N.J. Discussions focused on the bargaining program the USA would adopt for its 1970-71 negotiations with the steel, can, aluminum, and copper industries. Shortly after the conclusion of the convention, the Wage Policy Committee issued its general Wage Policy Statement. Included in the statement were proposals of a substantial wage increase, restoration of a cost-of-living escalator clause, liberalization of pension requirements and benefits, expansion of surviving spouse benefits, and improvements in the various group health plans. Special attention was given to broader mental health treatment, to a more comprehensive paid prescription drug program, and to coverage for dental care. The first general meeting between the USA and the Steel Industry Coordinating Committee occurred on May 18, 1971. During the 2-day session company and union officials laid out their overall positions and gave economic arguments to support them. The following week talks were held at the company level and issues were discussed in general terms. At the plant level, formal bargaining on local issues started June 1 and was scheduled to continue through July 31, although indus trywide negotiations were to resume in Washington, D.C. on July 7. By the time negotiations resumed in Washington, the Steelworkers had agreed on new contracts with major aluminum producers, and union officials publicly stressed their determination not to accept smaller gains in steel than had been reached earlier in the aluminum and metal container agreements. As the July 31 contract expiration date approached, many companies began banking their furnaces. On the night of the 31st, industry bargainers submitted a proposal that union representatives felt was generally adequate but would require further negotiations on details. The Basic Steel Industry Conference voted a 24-hour contract extension, and on August 1 a strike was averted when settlement was reached. Three-year contracts, which closely resembled the can and aluminum agreements, were signed August 2. Summary o f 1971 contract terms. The pact with U.S. Steel, which was essentially the same document as that signed by the other members of the basic steel industry, provided general wage increases of 50 cents an hour in the first year and deferred increases of 12% cents an hour in the second and third years. Also added was a total of 1.3 cents an hour over 3 years in widened increments between jobs classifications. A cost-of-living clause, which had been terminated in 1962, was re established in the second year. The clause provided for a 1- cent-per-hour increase for each 0.4-point increase in the BLS Consumer Price Index (1957-59=100), reviewed quarterly beginning August 1, 1972. The first review was to be based on a 1-month change, the second on a 2- month change, and subsequent reviews on 3-month changes in the Index. In addition, employees were guaranteed a cost-of-living allowance of at least 12% cents per hour by August 1, 1973, and, by May 1, 1974, an amount equal to the greater of 25 cents an hour or 12% cents plus the amount payable on August 1, 1973. Adjustments, which were to be paid as an adder, would apply only to hours worked and certain allowed time hours. Improvements in the pension plan increased the minimum monthly benefit to $8 for each of the first 15 years of service, $9 for each of the next 15 years, and $10 for each year over 30. Previously, the minimum rate was a flat $6.50 and credited service was limited to 35 years. The alternate 1-percent formula also was improved. For disability pensioners not eligible for unreduced Social Security disability pensions, the mini mum benefit was increased to $150 a month, and minimum benefits under the surviving spouse provision were increased to $100 a month for those under age 62 and to $50 for those 62 and over. Before retirement, the basic life insurance policy was increased by $2,500 in each earnings class. Medical care insurance coverage was expanded to include, among other things, medical care costs for donors of organs; abortions and sterilization procedures; and a physician’s charge for covered oral surgical procedures even when surgery was performed in his office. The annual maxi mum on psychiatric care was increased to $1,500 and maximum benefits for major medical insurance were increased to $15,000 for a calendar year and to $25,000 for lifetime. Among other improvements, maximum Supplemental Unemployment Benefits were increased by $30 a week; a paid holiday was added; and vacation bonus pay was increased to $40 and $50 for selected periods. Bonus pay varied in different months to encourage employees to take their vacations in less desira 3le months and thus to reduce summer work-force problems. The contract, which covered 103,000 workers, was to remain in effect until August 1, 1974, with no provision for reopening. Experimental negotiating agreement In anticipation of contract expiration in the summer of 1974, the parties agreed in early 1973 upon a new approach to future contract negotiations when they signed an “Experimental Negotiating Agreement.” The agreement was ratified on March 29, 1973, by 600 delegates to a Steelworkers’ Basic Steel Industry Con ference and signed by the Steelworkers and the Coordinating Committee Steel Companies (10 of the Nation’s major steel producers)16 a few days later. A joint announcement of details of the agreement was made at that time. This unprecedented agreement was not a replacement for the existing 3-year contracts, but rather a foundation for contract negotiations in 1974 to help stabilize steel operations, production, and employ ment. The 3-year Experimental Negotiating Agreement, covering about 350,000 workers, guaranteed un interrupted production in the industry through July 1977, by establishing voluntary final and binding arbitra tion of unresolved issues in the 1974 negotiations. Additionally, the parties agreed not to call a general strike or employ the lockout in support of their respective bargaining positions. The parties emphasized the need for a new approach in settling bargaining differences. They pointed out that “cyclical swings in operations and employment reflected by accumulation and liquidation of inventories by steel consumers have had a devastating economic impact not only on the steelworkers and companies, but also on the communities where steel operations are located.. . . ” The joint announcement also stated that . the periodic potentiality of a shutdown of steel operations— in spite of a history of harmonious settlements since 1959—has been largely responsible for attracting large volumes of foreign steel.” Under the new procedure, employees in the basic steel industry would be assured of minimum wage increases of 3 percent on August 1, 1974, 1975, and 1976. These pay increases would be added to both incentive and nonincentive wage scales. The cost-ofliving wage adjustment provisions in effect on July 31, 1974 were to be continued. “Because economic advantages could accrue to the companies by elimination of the effects of hedge-buying and shutdowns,” it was announced that the agreement also provided for a one-time uniform bonus of $150 for those who had employee status on August 1, 1974. The union retained a right to strike at a particular operation over local issues unique to that operation, but the parties emphasized that if such local plant strikes materialized, the likelihood of any significant disruption of domestic steel production would be minimal. Under the new bargaining arrangement, the parties were to begin negotiations for new agreements no later than February 1, 1974. Discussions would encompass all matters of wages, hours, and working conditions, as usual. The parties agreed to refer, by April 15, 1974, unresolved contract issues to an Impartial Arbitration Panel for decision on or before July 10, 1974. The Panel would have the authority to decide all issues referred to it and to settle any questions about the implementation of its decisions which the parties could not resolve, no later than midnight, July 31, 1974. The following tables bring the U.S. Steel Wage Chronology up to date through April 30, 1974.17 Allegheny Ludlum Industries, Inc., Armco Steel Corp., Bethlehem Steel Corp., Inland Steel Co., Jones & Laughlin Steel Corp., National Steel Corp., Republic Steel Corp., U.S. Steel Corp., Wheeling-Pittsburgh Steel Corp., and The Youngstown Sheet and Tube Co. 17 In, April 1974, the parties agreed on a new 39-month contract, 3V2 months in advance of the August 1, 1974 expira tion date of the old agreement. Details of the negotiations and the resulting terms of the agreement, effective May 1, 1974, will be published in a supplement to this bulletin. Effective date Provision Applications, exceptions, and other related matters Except at operations of Tennessee Coal, Iron and Railroad Co., the southern subsidiary, where hourly increases were as follows: Mar. 16, 1937 (agreements dated Mar. 2 and 17, 1936 -Carnegie Illinois Steel and Mar. 17, 1936-other subsidiaries). 10-cent-an-hour increase. Apr. 1, 1941 (agreement of same date). 10-cent-an-hour increase. Feb. 15, 1942 (agreement dated Sept. 1,1942). 5.5-cent-an-hour increase. According to Aug. 26, 1942, award of National War Labor Board, retroactive to Feb. 15, 1942. Feb. 15, 1946 (agreement dated Feb. 15,1946). 18.5-cent-an-hour increase. Also provided retroactive payment for all time worked from Jan. 1, 1946, to Feb. 15, 1946, inclusive, at 9.25 cents an hour. Feb. 1, 1947 (agreement dated Jan. 13, 1947—retroactive to Jan. 4, 1944). Average increase (corporation wide) resulting from establish ment of job classification pro gram amounted to 5.18 cents an hour; retroactive payments averaged 3-5/8 cents a man hour over all units. The job classification program was established in accordance with the NWLB directive of Nov. 25, 1944, calling for correction of intraplant inequities in wage rates. After almost 2 years of study and negotiation between company and union, agreement was reached on January 13, 1947, and plan was put into effect in February 1947. In addition to intraplant inequities, plan also d ealt w ith interplant and intercompany differentials. Inequities concerning major groups of incentive workers were left for future consideration. Hourly earning Increases 54.5 cents or less ..................................................7.0 cents 55.0 to 60.0 cen ts..................................................7.5 cents 60.5 to 80.0 cen ts..................................................8.0 cents Over 80.0 cen ts..................................................10 percent The plan grouped all jobs into 30 classes with rates starting at plant “base common labor rate” for job class 1 and proceeding upward to class 30 with increments of 3.5 cents between classes. It also provided special classifica tion for maintenance workers according to qualifica tions and rate progressions for apprentices. Workers being paid more than the newly adopted standard hourly wage scale were not rec.uced in pay while on present jobs. (Out-of-line differentials were reduced in subsequent negotiations.) Retroactive payments were provided for all hours worked between Jan. 4, 1944, and Jan. 31, 1947, at a rate equal to 70 percent of difference between rates effective Feb. 1, 1947, less general wage increases made subsequent to Jan. 4, 1944, and lower hourly wage rates (average hourly earnings for incentive workers) actually received. Cost of program varied among plants covered. These inequity adjustments were not applicable to Geneva, Utah, plant of Geneva Steel Co., until April 1948, retroactive in full to March 9, 1947. Effective date Provision Apr. 1, 1947 (agreement dated Apr. 22, 1947). 12.5-cent-an-hour increase, plus in c r e a s e in in crem en ts between standard job class rates resulting in added in creases up to 14.5 cents for the top classification. Total increase averaged approxi mately 15 cents. Applications, exceptions, and other related matters General increase was 15 cents an hour at Duluth, Minn., plant o f American Steel and Wire Co., and 15.5 cents an hour at Tennessee Coal, Iron and Railroad Co. Increments between the job classes in the standard hourly wage rate scale in effect at all plants (except Geneva operation of Geneva Steel Co.) were increased from 3.5 to 4 cents, thus providing additional increases ranging from 0.5 cents an hour in class 2 to 14.5 cents an hour in class 30. The general increase of 12.5 cents was added to earnings of incentive workers. July 16, 1948 (supplemental agreement of same date). 9.5-cent-an-hour increase, plus increase in increments between standard job class rates result ing in added increases up to 15.5 cents for the top classifi cation. Total increase averaged approximately 13 cents. Increments between job classes, now numbering 32, were increased from 4 to 4.5 cents, thus providing additional increases ranging from 0.5 cents an hour for jobs in class 2 to 15.5 cents an hour for jobs in class 32. The total adjustment for each job class was added to earnings of incentive workers covered by plans in effect on April 22, 1947. Dec. 1,1950 (supplemental agreement dated Nov. 30, 1950). 12.5-cent-an-hour increase, plus in c r e a s e in in crem en ts between standard job class rates resulting in added in creases up to 15.5 cents for the top classification. Total increase averaged approxi mately 16 cents. Increments between job classes were increased from 4.5 cents to 5 cents an hour, thus providing additional increases ranging from 0.5 cents for jobs in class 2 to 15.5 cents for jobs in class 32. The total adjustment for each job class was added to earnings of incentive workers covered by plans in effect on April 22, 1947. At operations of Tennessee Coal, Iron and Railroad Co., general increase and classification adjustments were uniformly 4.5 cents higher. Mar. 1, 1952 (agreement dated Aug. 15, 1952). 12.5-cent-an-hour increase, plus in c r e a s e in in crem en ts between standard job class rates resulting in added in creases up to 15.5 cents for the top classification. Total i n c r ease averaged ap proximately 16 cents. Increments between job classes were increased from 5 cents to 5.5 cents an hour, thus providing additional increases ranging from 0.5 cents for jobs in class 2 to 15.5 cents for jobs in class 32. The total adjustment for each job class was added to earnings of incentive workers covered by plans in effect on April 22, 1947. July 26, 1952 above date). (agreement of June 12, 1953 (supplemental agreement of same date). 5-cent-an-hour increase at operations of Tennessee Coal and Iron Division. 8.5-cent-an-hour increase. Jan. 1, 1954 (agreement of above date). 2.5-cent-an-hour increase at operations of Tennessee Coal and Iron Division. July 1, 1954 (agreement o f same date). 5-cent-an-hour increase. According to agreement o f June 12, 1953, previous 2.5 cents an hour North-South differential eliminated on July 1, 1954. July 1, 1955 (memorandum of agreement dated June 30, 1955). 11.5-cent-an-hour increase, plus in c r e a s e in in crem en ts between standard job class rates resulting in added in creases up to 15.5 cents for the top classification. Total increase averaged approxi mately 15.2 cents. Increments between job classes were increased from 5.5 cents to 6 cents an hour, thus providing additional increases ranging from 0.5 for jobs in class 2 to 15.5 cents for jobs in class 32. The total adjustment for each job class was added to earnings of incentive workers covered by plans in effect on Apr. 22, 1947. Aug. 3, 1956 (agreement of same date). 7.5-cent-an-hour increase plus in creases in increments between standard job class rates result ing in added increases up to 9 cents for the top classification. T o ta l in crease averaged approximately 9.5 cents an hour in base rates or 10.5 cents when effect on incentive pay is included. January 1957-first pay period beginning in month (agree ment dated Aug. 3,1956). 3- July 1, 1957 (agreement dated Aug. 3, 1956). 7-cent-an-hour increase, plus in crease in increments between standard job class rates, resulting in added increases up to 6 cents for the top classifi cation. Total increase averaged approximately 8.3 cents an hour in base rates or 9.1 cents when the effect on incentive pay is included. July 19 57-first pay period beginning in month (agree ment dated Aug. 3,1956). 4- Jan. 1958-first pay period begin ning in month (agreement dated Aug. 3,1956). 5-cent-an-hour allowance added to straigh t-tim e h ou rly earnings. Semiannual adjustment of cost-of-livin %allowance. July 1, 1958 (agreement dated Aug. 3, 1956). 7-cent-an-hour increase plus in creases in increments between standard job class rates, result ing in added increases up to 6 cents for the top classification. T otal in crease averaged approximately 8.3 cents an hour in base rates, or 9.5 cents when the effect on incentive pay was included. Increments between job classes were increased from 6.5 to 6.7 cents an hour, thus providing additional increases ranging from 0.2 cent in job class 3 to 6 cents in job class 32. Proportionate increase :n incentive earnings under pay plans in effect on Apr. 22, 1947, as well as under subsequent plans. Included in computing total was additional 6 cents an hour for employees formerly in job class 1 which was eliminated and combined with job class 2. Increments between job classes were increased from 6 to 6.3 cents an hour, thus providing additional increases ranging from 0.3 cent in job class 3 to 9 cents for job class 32. (See schedule of standard hourly rates.) Proportionate increase in incentive earnings under pay plans in effect on April 22, 1$>47, as well as for subsequent plans. (Previously cents per hour increases added to incentive earnings under pay plans in effect on Apr. 22, 1947.) Deferred increases of 7 cents an hour, plus 0.2-cent increases in increment between job classes effective July 1, 1957, and July 1, 1958. The new agreement provided for semiannual cost-of-living adjustments of 1 cent an hour, added to straight-time hourly earnings, for alternating 0.4- and 0.5-point changes in the Bureau of Labor Statistics Consumer Price Index above a level of 116.2. No reductions in the cost-of-living allowance unless the decline in the index warrants a wage decrease of at least 2 cents.2 cent-an-hour allowance added Semiannual adjustment of cost-of-living allowance. to straigh t-tim e h ou rly earnings. Increments between job classes were increased from 6.3 to 6.5 cents an hour, thus providing additional increases ranging from 0.2 cent in job class 3 to 6 cents for job class 32. Proportionate increase in incentive earnings under pay plans in effect on Apr. 22, 1947. cent-an-hour allowance added Semiannual adjustment of cost-of-living allowance. to stra ig h t-tim e h ou rly earnings. July 1958—first pay period begin ning in month (agreement dated Aug. 3, 1956). 4-cent-an-hour allowance added to straigh t-tim e h ou rly earnings. Semiannual adjustment o f cost-of-living allowance. Jan. 1959-first pay period begin ning in month (agreement dated Aug. 3, 1956). 1-cent-an-hour allowance added to straigh t-tim e hourly earnings. Semiannual adjustment o f cost-of-living allowance. Dec. 1, 1960 (agreement dated Jan. 4, 1960). 7-cent-an-hour increase plus in crease in increments between standard job class rates, result ing in added increases up to 6 cents for top classification. Total increase estimated to average 8.3 cents an hour in base rates, or 9.7 cents when the effect on incentive pay was included. Increments between job classes to be increased from 6.7 to 6.9 cents an hour, thus providing additional increases ranging from 0.2 cent in job class 3 to 6 cents in job class 32. Proportionate increase in incentive earnings under pay plans in effect on Apr. 22, 1947, as well as under subsequent plans. Another deferred increase of 7 cents an hour plus 0.1-cent increase in increment between job classes to be effective Oct. T, 1961. Cost estimated at 7.7 cents an hour in base rates or 8.9 cents when the effect on incentive pay was included. New agreement continued existing 17 cents an hour cost-of-living allowance and provided that it could not be reduced during the new contract period. Cost-of-living escalator clause provided for review on Dec. 1, 1960, and Oct. 1, 1961; existing formula continued but base revised to 123.8 (freezing the existing 17-cent cost-of-living allowance) and maximum permissible increase in allowance established at 6 cents by Oct. 1, 1961, of which maximum o f 3 cents could be effective on Dec. 1, I960.3 Part or all o f increase in cost-of-living allowance due on these dates was to offset any increase in net insurance cost above specified amount.4 No change. Cost-of-living review. The escalator clause would have increased cost-of-living allowance 3 cents; however, the parties estimated that insurance costs would rise sufficiently by the second quarter of 1961 to offset this amount. 1.5-cent-an-hour allowance added to straigh t-tim e h ou rly earnings. Cost-of-living adjustment. The escalator clause would have increased cost-of-living allowance 3 cents; however, the parties estimated that insurance costs would rise sufficiently by the fourth quarter of 1962 to offset half of the permissible amount (3 cents) remaining under the 1960 agreement.4 Deferred increase. Increments between job classes increased from 6.9 to 7 cents an hour, providing additional increases ranging from 0.1 cent in job class 3 to 3 cents in job class 32. Proportionate increase in incentive earnings under pay plans in effect on Apr. 22, 1947, as well as under subsequent plans. Oct. 1, 1961 (agreement dated Jan. 4, 1960). 7-cent-an-hour increase plus in crease in increments between standard job class rates, result ing in added increases up to 3 cents for top classification. Total increase estimated to average 7.7 cents an hour in base rates, or 8.9 cents when the effect on incentive pay was included. July 1, 1962 (agreement dated Apr. 6, 1962). Escalator clause discontinued; 18.5-cent-an-hour cost-ofliving allowance in effect continued during term of agreement. Continued: 18.5-cent-an-hour cost-of-living allowance in effect during term of agreement. June 29, 1963 (agreement dated Apr. 6, 1962, as amended June 29,1963). Sept. 1, 1965 (agreement of same date). 10-cent-an-hour increase plus 0.3-cent increase in increments between job classes, resulting in added increases up to 9 cents for top classification. Total increase estimated to average 12.2 cents an hour in base rates. Agreement also provided: (1) For existing 18.5 cents an hour cost-of-living adjustment to be included in standard hourly wage rates effective Sept. 1, 1965; (2) that all incentive earnings be calculated on the basis of standard hourly wage rates in effect before Sept. 1, 1965; (3) an inequity adjustment for skilled crafts and trade employees effective Jan. 1, 1966, and (4) a deferred general wage increase effective Aug. 1, 1967. Jan. 1, 1966 (agreement dated Sept. 1,1965). All existing trade and craft jobs increased by two full job classes; jobs o f millwright and motor inspector given craft status, raised two job classes and given schedule of appren ticeship training and rate schedules. Such increase in job classification was not to be used for any incentive pay purposes; instead, each trade or craft employee on incentive work was to receive 14.6 cents an hour added to all other earnings. Aug. 1, 1967 (agreement dated Sept. 1, 1965). 6-cent-an-hour increase plus 0.2-cent increase in increments between job classes, resulting in added increases up to 6 cents for top classification. Total increase estimated to average 7.5 cents an hour in base rates. 20-cen t-an -h ou r increase plus 0.5-cent increase in increments between job classes, resulting in additional increases o f up to 15 cents an hour for job class 32. T o ta l increase estimated to average 23.8 cents an hour in base rates. Deferred increase. Incentive earnings continued to be calcu lated on the basis of standard hourly wage rates in effect before Sept. 1, 1965. Aug. 1, 1968 (agreement o f same date). Increased: Trade or craft incentive additive-to 15 cents an hour. Job class 33 added to top of rate structure. Joint committee established to recommend guides, by Aug. 1, 1969, for: (1) types of jobs properly subject to incentive pay coverage; (2) the definition of equitable incentive earning opportunities; and (3) the adjustment o f incentive standards. Employees in jobs brought under incentive pay coverage were to receive 10 cents an hour for each hour worked on such job from Aug. 1, 1968, to the date incentive was applied to the job, if such work continued for 2 pay periods or more during this time. Increased: Trade or craft incentive adclitive-to 16 cents an hour. Aug. 1, 1968 5 (agreement dated Aug. 1, 1968; and arbitration awards dated Aug. 1, 1969, Aug. 8, 1970, and Nov. 11, 1970). Extended: Incentive pay of 10 cents an hour retroactive to Aug. 1, 1968,5 to newlycovered employees. Applicable only to steel producing operations. Coverage extended to at least 90 percent6 of production workers on a companywide basis and 65 percent of employees in each plant which employed at least 100 workers. Employees directly contributing to rate of output were eligible to receive 35 percent above their base pay. Employees contributing indirectly were eligible to receive 67 percent of ejimings opportunities of related direct incentive jobs or 2 3 percent above their base rate. Employees providing secondary indirect con tributions were eligible to receive 33 percent o f the earnings opportunities of related direct incentive jobs, 50 percent of related indirect incentive jobs, or 12 percent above their base rate. Deferred increase. Aug. 1, 1969 (agreement dated Aug. 1, 1968). 12 -cent-an-hour increase plus 0.3-cent increase in increments between job classes, resulting in additional increases of up to 9.3 cents an hour for job class 33. Total increase estimated to average 14.2 cents an hour in base rates. Aug. 1, 1970 (agreement dated Aug. 1, 1968). 1 2 -cent-an-hour increase plus 0.2-cent increase in increments between job classes, resulting in additional increases of up to 6.2 cents an hour for job class 33. Total increase estimated to average 13.5 cents an hour in base rates. Deferred increase. Aug. 1, 1971 (agreement o f same date). 50-cent-an-hour general increase and 0 .5 -cent increase in increments between job classes resulting in additional in creases up to 15.5 cents an hour for job class 33. Additional increase to in centive employees averaging 11 cents an hour resulting from incorporation o f the 50-cent increase into incentive base rates rather than being paid as an hourly additive. The combined incentive and non incentive increases in base rates were estimated to average 64.8 cents an hour. Agreement also re-established a cost-of-living escalator clause with quarterly reviews, beginning Aug. 1, 1972 through May 1, 1974 and providing for adjustments7 of 1 cent for each 0.4-point change in the BLS-CPI (1957-59=100). Except for the first review, which was to be based on a 1-month index change (between the June 1972 base month and July 1972), and the second review, which was to be based on a 2-month change (between July and September 1972), reviews for quarterly changes from the base used indexes for Sept., Dec., March, and June, with the allowance guaranteed to be 12.5 cents beginning with the Aug. 1, 1973 adjustment date and 25 cents (or 12.5 cents more than the August 1973 allowance, whichever was greater) commencing May 1, 1974. No adjustment was to be made if the CPI fell below the base index; deferred wage increases were provided, effective Aug. 1, 1972 and Aug. 1, 1973. Increased: Trade or craft incentive additive—to 16.6 cents an hour. Increased: Trade or craft incentive additive-to 17 cents an hour. Increased: Trade or craft incentive additive-to 18 cents an hour. 12.5-cent-an-hour general increase and 0.4-cent increase in incre ments between job classes r e s u ltin g in ad d itio n a l increases up to 12.4 cents an hour for job class 33. The combined incentive and non incentive increases in base rates were estimated to average 15.5 cents an hour. Deferred increase. Incentive earnings to be calculated on the basis of the standard hourly wage scale in effect Aug. 1, 1971 and supplemented by the appropriate Aug. 1, 1972 hourly additive as specified in table 2d. 1-cent-an-hour increase. Quarterly adjustment of cost-of-living allowance. Nov. 1, 1972 (agreement dated Aug. 1,1971). 2-cent-an-hour increase. Quarterly adjustment o f cost-of-living allowance. Feb. 1, 1973 (agreement dated Aug. 1, 1971). 3-cent-an-hour increase. Quarterly adjustment of cost-of-living allowance. Aug. 1, 1972 (agreement dated Aug. 1,1971). Increased: Trade or craft incentive additive-to 18.8 cents an hour. Provision Effective date Applications, exceptions, and other related matters May 1, 1973 (agreement dated Aug. 1, 1971). 7-cent-an-hour increase. Quarterly adjustment of cost-of-living allowance. Aug. 1, 1973 (agreement dated Aug. 1, 1971). 12.5-cent-an-hour general increase and 0.4-cent increase in incre ments between job classes resulting in additional in creases up to 12.4 cents an hour for job class 33. The combined incentive and non incentive increases in base rates estimated to average 15.5 cents an hour. Deferred increase. Incentive earnings continued to be calculated on the basis of the Aug. 1, 1971 standard hourly wage scale and supplemented by the appropriate Aug. 1, 1973 hourly additive as specified in table 2d. 8-cent-an-hour increase. Quarterly adjustment of cost-of-living allowance. Nov. 1, 1973 (agreement dated Aug. 1, 1971). 9-cent-an-hour increase. Quarterly adjustment of cost-of-living allowance. Feb. 1, 1974 (agreement dated Aug. 1, 1971). 9-cent-an-hour increase. Quarterly adjustment o f cost-of-living allowance. Increased: Trade or craft incentive additive-to 19.6 cents an hour. 1 General wage changes are construed as upward or downward adjustments affecting a substantial number of workers at one time. Not included within the term are adjustments in individual rates (promotions, merit increases, etc.) and minor adjustments in wage structure (such as changes in individual job rates or incentive rates) that do not have an immediate and noticeable effect on the average wage level. The changes listed above were the major adjustments in wage rates made during the period covered. Because of fluctuations in incentive earnings, the omission o f nongeneral changes in rates, and other factors, total general changes will not necessarily coincide with the change in average hourly earnings over the same period. 2 The agreement provided that semiannual cost-of-living adjustments be based on the Bureau of Labor Statistics Consumer Price Index (1947-49=100) for the index months of May and November as follows: Consumer Price Index 116.5 116.6 117.1 117.5 118.0 Cost-of-living allowance or less ............................................. None to 117.0 ............................................1 cent an hour to 117.4 ............................................2 cents an hour to 117.9 ............................................3 cents an hour to 118.3 ........................................... 4 cents an hour and so forth, with 1-cent adjustments in straight-time hourly earnings for alternating 0.4- and 0.5-point changes in the index, and with downward adjustments occurring only when the index declines sufficiently to warrant a 2-cent decrease. Footnote 2— Continued: Examples of changes in the cost-of-living allowance are shown in the following tabulation: Changes in cost-of-living allowance in cents according to table Actual cost-of-living adjustment +4 c e n t s ...........................................4 cents an hour +3 c e n t s ...........................................7 cents an hour - 2 c e n t s .......................................... 5 cents an hour - 1 c e n t............................................. 5 cents an hour - 1 c e n t............................................. 3 cents an hour +2 c e n t s ...........................................5 cents an hour - 1 c e n t............................................. 5 cents an hour +1 c e n t............................................. 5 cents an hour - 1 c e n t............................................. 5 cents an hour +2 c e n t s ...........................................6 cents an hour - 3 c e n t s ...........................................3 cents an hour - 1 c e n t.............................................3 cents an hour - 1 c e n t............................................. 1 cent an hour —3 c e n t s ...........................................None +2 c e n t s ...........................................None 3 The agreement provided cost-of-living adjustments effective Dec. 1, 1960, and Oct. 1, 1961, based on the Bureau of Labor Statistics Consumer Price Index for the months of October 1960 and August 1961, respectively, as follows: Consumer Price Index (1947-49 = 100) Increase in cost-of-living alio wan ce 124.2 or l e s s ............................................. None 124.3-124.6 ............................................. 1 cent (18 cents total) 124.7-125.1 ............................................. 2 cents (19 cents total) 125.2-125.5 ............................................. 3 cents (20 cents total) 125.6-126.0 ............................................. 4 cents (21 cents total) 126.1-126.4 ............................................. 5 cents (22 cents total) 126.5-126.9 ............................................. 6 cents (23 cents total) 4 The agreement provided that 0.1 cent was to be deducted from the cost-of-living escalator adjustment for each 18 cents that projected average monthly net insurance costs exceeded $20.16 a month per active employee. Cost computations were to be based on estimated projections of insurance costs during the quarters ending June 30,1961, and Dec. 31, 1962, respectively. Contracts with, and quotations supplied by, insurance companies were to be used to determine insurance costs. If the parties’ actuaries were unable to agree on net insurance costs by 30 days before the effective date of any cost-of-living adjustment, a neutral actuary selected by the parties’ actuaries would make the determination. 5 Depending on the actual date of implementation o f the award at the plant level, the effective date of the incentive award varied from plant to plant. 6 The original award, made Aug. 1, 1969, extended coverage to 85 percent of the production and maintenance workers. The award made Nov. 11, 1970, extended this to 90 percent, applicable only to steel-producing operations at the U.S. Steel Corp. 7 The cost-of-living allowance was to be paid as an adder and applied only to hours worked and certain allowed time hours. Standard hourly rate2 Typical jobs Job class Title Department 0-1 Sweepers and ja n ito rs................ All departments........................... Tube finishing Pipe-cap man July 16, 1948 Dec. 1, 1950 Mar. 1, 1952 June 12, 1953 July 1, 1954 July 1, 1955 $1,185 $1.31 $1,435 $1.52 $1.57 $1,685 2 General labor (unassigned) . . . . Bloom butt scrapman Painter’s helper All departments........................... Billet mill Paint shop 1.23 1.36 1.49 1.575 1.625 1.745 3 Labor (assigned) such as pig machine labor, gas washer labor, and wharfman Bricklayer’s helper All departments........................... 1.275 1.41 1.545 1.63 1.68 1.805 4 Track la b o r .................................. Stock unloader Stenciler Hand stamper Transportation ........................... Blast furnaces Bloom, slab and billet mills Bloom, slab and billet mills 1.32 1.46 1.60 1.685 1.735 1.865 5 Assorter (tin) ............................. Crane hooker Stopper maker Carpenter’s helper Strip and sheet fin ish in g........... All departments Open hearth Carpentry and pattern shop 1.365 1.51 1.655 1.74 1.79 1.925 6 Sand-mixer operator.................. Foundry ...................................... Rigger helper Maintenance Open hearth Third helper 1.41 1.56 1.71 1.795 1.845 1.985 7 Conditioning scarfer.................. Bloom and billet m ills................ Conditioning chipper Bloom and billet mills Tin mill cold reduction Tractor operator (scrap) 1.455 1.61 1.765 1.85 1.90 2.045 8 Truckdriver.................................. Autom otive.................................. Wire mill Bench-wire drawer Blast furnaces Craneman, ladle house 1.50 1.66 1.82 1.905 1.955 2.105 9 Mill craneman............................. Center-lathe operator Hot strip m ill................................ Axle mill 1.545 1.71 1.875 1.96 2.01 2.165 B ottom m a k e r .................................. Soaking pits .................................. Blast furnaces Merchant mill 1.59 1.76 1.93 2.015 2.065 2.225 Paint s h o p .................................... Strip and sheet finishing 160” plate mill 1.635 1.81 1.985 2.07 2.12 2.285 Cranes........................................... Foundry Blast furnaces Merchant mill 1.68 1.86 2.04 2.125 2.175 2.345 1.725 1.91 2.095 2.18 2.23 2.405 1.77 1.96 2.15 2.235 2.285 2.465 10 Operator, skip and larry cars Shearman, hot 11 Painter .............................................. Galvanize potman Shearman 12 L ocom otive cra n em a n .................. Coremaker Ore-bridge operator Strander 13 14 Masonry Carpenter .................................... Carpentry and pattern s h o p ........................................... Transfer tableman Rail mill Merchant mill Finisher Welder (a rc-a cety len e).................. Moulder Keeper Millwright Maintenance ................................ Foundry Blast furnaces Maintenance Job class Standard hourly rate Typical jobs Title Department 2 July 16, 1948 Dec. 1, 1950 Mar. 1, 1952 June 12, 1953 July 1, 1954 July 1, 1955 1.815 2.01 2.205 2.29 2.34 2.525 15 Boilermaker ................................ Boilershop.................................... Masonry Bricklayer Roll shop Roll turner Hot strip mill Rougher 16 Machinist .................................... Axle maker (forger) Layout man Charging-machine operator Machine shop ............................. Axel mill Boilershop Open hearth 1.86 2.06 2.26 2.345 2.395 2.585 17 Layout man (m achinist)........... Patternmaker Machine shop ............................. Carpentry and pattern shop 1.905 2.11 2.315 2.40 2.45 2.645 18 Toolmaker .................................. Machine shop ............................. Coke plant Heater 1.95 2.16 2.37 2.455 2.505 2.705 19 Melter, electric tilt furnace . . . . Assistant roller Welder 1.995 2.21 2.425 2.51 2.56 2.765 20 Roller (mechanical mills) ......... Hot strip pack m ills.................... Plate mills Heater 2.04 2.26 2.48 2.565 2.615 2.825 21 Billet mill roller........................... Hi mill roller, seamless tubing First helper, arc fu rn a c e........... Tandem mill roller Bar m ill......................................... 2.085 2.31 2.535 2.62 2.67 2.885 Hot mill Electric furnaces......................... Cold reducing mill 2.13 2.36 2.59 2.675 2.725 2.945 Heater........................................... 80” hot strip and finishing.................................... Open hearth 2.175 2.41 2.645 2.73 2.78 3.005 2.22 2.46 2.70 2.785 2.835 3.065 22 23 First helper (making bottom) 24 First helper (No. 1 open hearth)...................................... Rotary roller Foundry ...................................... Strip mill Butt weld Open hearth ................................ Seamless piercing and rolling 25 R o lle r ........................................... Blooming m i l l ............................. First helper (No. 5 open Open hearth hearth) 2.265 2.51 2.755 2.84 2.89 3.125 26 Blower ......................................... Bessem er...................................... Tin mill cold reduction Roller (wide tandem) 2.31 2.56 2.81 2.895 2.945 3.185 27 Roller, s la b .................................. 36” slab m iU ................................ 160” plate mill Roller Bloom and structural Screwman No. 1 finishing mill 2.355 2.61 2.865 2.95 3.00 3.245 28 R o lle r ........................................... 4 2 ” hot str ip ................................ Bloom and structural Roller 28/32 No. 1 finishing mill 2.40 2.66 2.92 3.005 3.055 3.305 2.445 2.71 2.975 3.06 3.11 3.365 2.49 2.76 3.03 3.115 3.165 3.425 2.535 2.81 3.085 3.17 3.22 3.485 2.58 2.86 3.14 3.225 3.275 3.545 29 30 R o lle r ........................................... 80” hot strip (Gary) .................. 100” plate mill Roller 31 32 R o lle r ........................................... 80” hot strip mill (Irvin)......................................... Footnotes Table 2a. * Workers paid on an incentive basis, under existing incentive plans, generally earned more than the standard hourly rate which served as their guaranteed minimum. 2 Hourly rates for each job class at the Tennessee Coal and Iron Division were uniformly 14.5 cents an hour lower on July 16, 1948, 10 cents lower on Dec. 1, 1950, and Mar. 1, 1952, 5 cents lower on July 26, 1952, and June 12, 1953, and 2.5 cents an hour lower on Jan. 1,1954. This differential was eliminated as of July 1,1954 (by agreement dated June 12, 1953). Job class12 Aug. 3, 1956 July 1, 1957 July 1, 1958 Dec. 1, 1960 Oct. 1, 1961 1-23 ........................................... 3 .................................................. 4 .................................................. 5 .................................................. 6 .................................................. 7 .................................................. 8 .................................................. 9 .................................................. 1 0 .................................................. 1 1 .................................................. 1 2 .................................................. 1 3 ................................................. 1 4 .................................................. 1 5 .................................................. 1 6 .................................................. 1 7 .................................................. 1 8 .................................................. 1 9 ................................................. 2 0 .................................................. 2 1 .................................................. 2 2 .................................................. 2 3 .................................................. 2 4 .................................................. 2 5 .................................................. 2 6 .................................................. 2 7 .................................................. 2 8 .................................................. 2 9 .................................................. 3 0 .................................................. 3 1 .................................................. 3 2 .................................................. $1,820 1.883 1.946 2.009 2.072 2.135 2.198 2.261 2.324 2.387 2.450 2.513 2.576 2.639 2.702 2.765 2.828 2.891 2.954 3.017 3.080 3.143 3.206 3.269 3.332 3.395 3.458 3.521 3.584 3.647 3.710 $1,890 1.955 2.020 2.085 2.150 2.215 2.280 2.345 2.410 2.475 2.540 2.605 2.670 2.735 2.800 2.865 2.930 2.995 3.060 3.125 3.190 3.255 3.320 3.385 3.450 3.515 3.580 3.645 3.710 3.775 3.840 $1,960 2.027 2.094 2.161 2.228 2.295 2.362 2.429 2.496 2.563 2.630 2.697 2.764 2.831 2.898 2.965 3.032 3.099 3.166 3.233 3.300 3.367 3.434 3.501 3.568 3.635 3.702 3.769 3.836 3.903 3.970 $2,030 2.099 2.168 2.237 2.306 2.375 2.444 2.513 2.582 2.651 2.720 2.789 2.858 2.927 2.996 3.065 3.134 3.203 3.272 3.341 3.410 3.479 3.548 3.617 3.686 3.755 3.824 3.893 3.962 4.031 4.100 $2.10 2.17 2.24 2.31 2.38 2.45 2.52 2.59 2.66 2.73 2.80 2.87 2.94 3.01 3.08 3.15 3.22 3.29 3.36 3.43 3.50 3.57 3.64 3.71 3.78 3.85 3.92 3.99 4.06 4.13 4.20 1 Rates do not include cost-of-living allowance in effect on the respective dates. 2 For typical occupations in each job class, see table 2a. 3 Under the agreement of Aug. 3, 1956, workers who were formerly in job class 0-1 were moved up and combined with job class 2. Employees in former job class 0-1 received an extra 6 cents an hour increase (the old increment) in addition to the general increases for all workers. Job class 1 - 2 .......................................................................... 3 ............................................................................. 4 ............................................................................. 5 ............................................................................. 6 ............................................................................. 7 ............................................................................. 8 ............................................................................. 9 ............................................................................. 10 ............................................................................ 11 ............................................................................. 12 ............................................................................. 13 ............................................................................ 14 ............................................................................. 15 ............................................................................ 16 ............................................................................ 17 ............................................................................ 18 ............................................................................. 19 ............................................................................ 20 ............................................................................. 21 ............................................................................ 22 ............................................................................. 23 ............................................................................. 24 ............................................................................ 25 ............................................................................. 26 ............................................................................. 27 ............................................................................. 28 ............................................................................. 29 ............................................................................ 30 ............................................................................. 31 ............................................................................ 32 .................... , ...................................................... 333 .......................................................................... Aug. 1, 1968 Aug. 1, 1969 Aug. 1, 1970 Aug. 1, 1971 Aug. 1, 19722 Aug. 1, 19732 $2,645 2.725 2.805 2.885 2.965 3.045 3.125 3.205 3.285 3.365 3.445 3.525 3.605 3.685 3.765 3.845 3.925 4.005 4.085 4.165 4.245 4.325 4.405 4.485 4.565 4.645 4.725 4.805 4.885 4.965 5.045 1 5.125 ________ 1 $2,765 2.848 2.931 3.014 3.097 3.180 3.263 3.346 3.429 3.512 3.595 3.678 3.761 3.844 3.927 4.010 4.093 4.176 4.259 4.342 4.425 4.508 4.591 4.674 4.757 4.840 4.923 5.006 5.089 5.172 5.255 5.338 $2,885 2.970 3.055 3.140 3.225 3.310 3.395 3.480 3.565 3.650 3.735 3.820 3.905 3.990 4.075 4.160 4.245 4.330 4.415 4.500 4.585 4.670 4.755 4.840 4.925 5.010 5.095 5.180 5.265 5.350 5.435 5.520 $3,385 3.475 3.565 3.655 3.745 3.835 3.925 4.015 4.105 4.195 4.285 4.375 4.465 4.555 4.645 4.735 4.825 4.915 5.005 5.095 5.185 5.275 5.365 5.455 5.545 5.635 5.725 5.815 5.905 5.995 6.085 6.175 $3,510 3.604 3.698 3.792 3.886 3.980 4.074 4.168 4.262 4.356 4.450 4.544 4.638 4.732 4.826 4.920 5.014 5.108 5.202 5.296 5.390 5.484 5.578 5.672 5.766 5.860 5.954 6.048 6.142 6.236 6.330 6.424 $3,635 3.733 3.831 3.929 4.027 4.125 4.223 4.321 4.419 4.517 4.615 4.713 4.811 4.909 5.007 5.105 5.203 5.301 5.399 5.497 5.595 5.693 5.791 5.889 5.987 6.085 6.183 6.281 6.379 6.477 6.575 6.673 Sept. 1, 19651 Aug. 1, 1967 $2,385 2.458 2.531 2.604 2.677 2.750 2.823 2.896 2.969 3.042 3.115 3.188 3.261 3.334 3.407 3.480 3.553 3.626 3.699 3.772 3.845 3.918 3.991 4.064 4.137 4.210 4.283 4.356 4.429 4.502 4.575 $2,445 2.520 2.595 2.670 2.745 2.820 2.895 2.970 3.045 3.120 3.195 3.270 3.345 3.420 3.495 3.570 3.645 3.720 3.795 3.870 3.945 4.020 4.095 4.170 4.245 4.320 4.395 4.470 4.545 4.620 4.695 1 Includes 18.5 cents cost-of-living allowance incorporated into standard hourly rates on Sept. 1, 1965. 2 Does not include cost-of-living escalator adjustments or guarantees in effect on these dates. 3 Job class 33 established Aug. 1, 1968. Job class Hourly wage rate (incentive calculation rates) 1 -2 ......................... 3 ........................... 4 ........................... 5 ........................... 6 ........................... 7 ........................... 8 ........................... 9 ........................... 1 0 ........................... 1 1 ........................... 1 2 ........................... 1 3 ........................... 1 4 ........................... 1 5 ........................... 1 6 ........................... 1 7 ........................... 1 8 ........................... 1 9 ........................... 2 0 ........................... 21 ........................... 2 2 ........................... 2 3 ........................... 2 4 ........................... 25 ........................... 2 6 ........................... 2 7 ........................... 2 8 ........................... 2 9 ........................... 3 0 ........................... 31 ........................... 3 2 ........................... 334 ......................... $2.10 2.17 2.24 2.31 2.38 2.45 2.52 2.59 2.66 2.73 2.80 2.87 2.94 3.01 3.08 3.15 3.22 3.29 3.36 3.43 3.50 3.57 3.64 3.71 3.78 3.85 3.92 3.99 4.06 4.13 4.20 - Hourly additives1 Sept. 1, 1965 2 Aug. 1, 1967 Aug. 1, 1968 Aug. 1, 1969 Aug. 1, 1970 $0,285 .288 .291 .294 .297 .300 .303 .306 .309 .312 .315 .318 .321 .324 .327 .330 .333 .336 .339 .342 .345 .348 .351 .354 .357 .360 .363 .366 .369 .372 .375 - $0,345 .350 .355 .360 .365 .370 .375 .380 .385 .390 .395 .400 .405 .410 .415 .420 .425 .430 .435 .440 .445 .450 .455 .460 .465 .470 .475 .480 .485 .490 .495 - $0,545 .555 .565 .575 .585 .595 .605 .615 .625 .635 .645 .655 .665 .675 .685 .695 .705 .715 .725 .735 .745 .755 .765 .775 .785 .795 .805 .815 .825 .835 .845 .855 $0,665 .678 .691 .704 .717 .730 .743 .756 .769 .782 .795 .808 .821 .834 .847 .860 .873 .886 .899 .912 .925 .938 .951 .964 .977 .990 1.003 1.016 1.029 1.042 1.055 1.068 $0,785 .800 .815 .830 .845 .860 .875 .890 .905 .920 .935 .950 .965 .980 .995 1.010 1.025 1.040 1.055 1.070 1.085 1.100 1.115 1.130 1.145 1.160 1.175 1.190 1.205 1.220 1.235 1.250 Hourly wage rate (incentive calculation rates) $2.60 2.67 2.74 2.81 2.88 2.95 3.02 3.09 3.16 3.23 3.30 3.37 3.44 3.51 3.58 3.65 3.72 3.79 3.86 3.93 4.00 4.07 4.14 4.21 4.28 4.35 4.42 4.49 4.56 4.63 4.70 4.77 Hourly additives1 Aug. 1, 1971 Aug. 1, 19723 Aug. 1, 1973 3 $0,785 .805 .825 .845 .865 .885 .905 .925 .945 .965 .985 1.005 1.025 1.045 1.065 1.085 1.105 1.125 1.145 1.165 1.185 1.205 1.225 1.245 1.265 1.285 1.305 1.325 1.345 1.365 1.385 1.405 $0,910 .934 .958 .982 1.006 1.030 1.054 1.078 1.102 1.126 1.150 1.174 1.198 1.222 1.246 1.270 1.294 1.318 1.342 1.366 1.390 1.414 1.438 1.462 1.486 1.510 1.534 1.558 1.582 1.606 1.630 1.654 $1,035 1.063 1.091 1.119 1.147 1.175 1.203 1.231 1.259 1.287 1.315 1.343 1.371 1.399 1.427 1.455 1.483 1.511 1.539 1.567 1.595 1.623 1.651 1.679 1.707 1.735 1.763 1.791 1.819 1.847 1.875 1.903 1 Before Sept. 1, 1965, employees on jobs covered by an incentive plan in effect on Apr. 22, 1947 received percentage increases in total earnings (excluding overtime, shift and Sunday premiums, and cost-of-living adjustments) equal to the percentage increases in standard hourly wage rates for such jobs. 2 Includes 18.5 cents cost-of-living allowance incorporated into the hourly additive. 3 Does not include cost-of-living escalator adjustments or guarantees in effect on these dates. 4 Job class 33 established Aug. 1, 1968. Typical job classifications Job class 1 -2 .................................. Helpers, cold saw; janitors; laborers. 3 .................................... Baggers; bonders, coil; cleaners, die; coaters, pipe; handlers, material; helpers, bar bending, bricklayer, charger, circle sketch shearmen, coder, cold saw, gas washer, ladle line; laborers, vessel; pilers; scalemen; scrapmen (billet shears); skidmen; straighteners; wharfmen; wrenchers. 4 .................................... Attendants, oil house; bailers; bundlers; cindermen; daymen; cleaners, pipe; feeders, yoder mill; greasers; hammermen, pneumatic; handstraighteners; helpers, bonderizer, chipping machine, corrugating machine, gas washer, heater leveler, nail galvanizer, oiling machine, shearman, shot blaster, sintering machine, straightener, streine shearman; hookers; mixers, refractory; operators, ingot buggy, sweeper; rod-welders; samplers; scalemen; screenmen; sorters; stencilers; topmen; unloaders, stock; wrappers; wrenchers (hot bed). 5 .................................... Bundlers; burners; car blockers; chippers; cleaners, boiler, nail; conveyormen; depilers; descalers; dischargers; dumpers, refuse car; grinders, end, pipe; feeders, rotary mill; helpers, armature winder, charger, draw bench, galvanize (outlet), gun operator, hydrostatic tester, machinists, patcher, pump station, shear, slitter, store room attendant, wireman; hookers; laborers, hot work; lidmen; mixers, sinter materials; operators, bed, cold saw, hoist, oiling machine; shot-blasters; straighteners, hand; scrap-bailers; stampers; stopper-makers; shearmen, welded fabric; rewinders; reelers. 6 .................................... Chargers; convey ormen; cranemen, skull-cracker; coders; drivers, hammer; feeders, coil; helpers, blacksmith, boilermaker, galvanize (inlet), heat treater, millwright, motor inspector, motor room tender, nail machine, pickier, pipefitter, rigger, rotary heater, setup man; oilers, mill; operators, leveler, polishing machine, scrap press, table, transfer car; inspectors, drop test; raggers, roll; reelers; Stockers, slab; strippers, coil; tenders, lubrication system. 7 .................................... Blockers; chargers; chippers; cleaners, door, nail; cranemen, mould preparation, stockyard, sulphate; crusherman; drillers, rail; feeders, temper mill; helpers, nozzle setter; inspectors, loaders; operators, cold saw, coremaking machine, drill press, gun, nail galvanize, quencher car, sizing mill, transfer car; pointers; scarfers; screenmen; shot-blasters; spoolers, wire; stencilers; stockers-batch pickier; straighteners (gag press); wheel-handlers; wipers. 8 .................................... Builders, roll; burners; coders, rod mdl; cranemen, charging, cold saw, conditioning yard, forging, ladle house, lathe shop, leveler, machine shop, mobde, pickle, saturator, slab yard tractor, tractor, yard; cutter, wire rope; feeders, tandem mill; grinders, end; helpers, heater, rotary plugger; operators, burning machine, fence machine, finishing machine, hot saw, marking machine, milling machine, rod shop, table, tractor; inspectors, drop test, rail drilling, strip; pluggers, rotary mill; pointers, scarfers (hot); shearmen, circle sketch; straighteners; wire-drawers (block). 9 .................................... Cleaners, sheet; cranemen, blooming mdl, mdl, mixer, pickling, rod mdl, shovel; divers, fire truck; feeders, tandem mill; finishers, strip; flask-makers; helpers, keeper, lead-burner, wheel press; inspectors, final, finishing end, loaders, slab; liners, ladle; open coders; operators, bar bending, bonderizer, chipping machine, corrugating machine, draw bench, drill press, lathe, table, welded fabric machine; nozzlemen; repairmen, mechanical (open hearth), (axle mdl); shearmen, flying, resquare; stitcher-welders; stillmen, ammonia; straighteners; washers, gas. 10 .................................. Babbittmen; cranemen, hot top, pig machine; drawers, wire (continuous machine); feeders, temper mill; helpers, rougher; inspectors, final; larrymen; loaders, by-product; naphthalenemen; nozzle-setters; operators, agitator, assistant box annealer, bonderizer, burning machine, mdling machine, piercer bar, pig machine, plate leveler, pump station, scarfing machine, sintering machine, staple machine, upsetter; patchers, oven; reamers, die (round); repairmen, mechanical (ore yard); shearmen, end; spark testers; straighteners; tenders, motor room, sub-station. 11 .................................. Coders; helpers, benzol stillmen; larrymen; levermen, finishing; operators, boilerhouse, cambering machine, car dumper, charing machine, door machine, drid press, keysetter, nail machine, reeling machine, speed (roughing), yoder mdl; picklers, batch; potmen, galvanizing; repairmen, refrigeration, scale; setup-men; shearmen, electrolytic line, resquare, slab, streine. 12 .................................. Catchers, bar; cranemen, hot metal, stripper; finishers, strip; gaugers; inspectors, scale, shear; layerout, plate; levermen, roughing; operators, annealing, boderhouse, galvanizing, hot saw, pusher, scarfing machine; picklers; power engineers, first; repairmen, electrical, gauge, larry car; rod finishers, assistant; shearmen, blooming mdl, flying; washers, gas. Typical job classifications Job class 13 .................................. Cranemen, hot metal; finishers, strip; heat treaters; heaters, assistant, rotary mill, soaking pit; inspectors, hot mill; manipulators; operators, charging crane, furnace-heat treat, transfer table, unloader, wheel press; painters;repairmen, air conditioning; roll setters; setup men. 14 .................................. Coremakers; finishers, strip; inspectors, crane, motor; keepers; operators, box annealer, screw down; repairmen, automobile, lubrication equipment; roughers; setters, guide; tenders, motor room, stove; welders, arc. 15 .................................. Carpenters; cranemen, soaking pit, forgers, gaugers; operators, hi-mill, rotary mill, speed-finishing; pipefitters; rollers, tandem mill-assistant; setup men (upset machine); template maker. 16 .................................. Cranemen, ladle; electricians (armature winder), (shop); finishers; rod; heaters; layerout; millwrights; moulders, operators, charging machine, electrolytic tinning line; pourers; riggers; rollers, tandem mild-assistant; roughers, welders. 17 .................................. Attendants, automatic reversing rougher; blacksmiths; boilermakers; bricklayers; heaters; operators, continuous annealing line; sheet metal workers; turners, roll. 18 .................................. Burners, roll; checkers, pattern; electricians (linemen), (wiremen); heaters, soaking pit; machinist; repairmen, instrument; rollers, temper mill, assistants (rail mill); stillmen, benzol. 19 .................................. Patternmakers; rollers, assistant. 20 .................................. Heaters, slab, billet; repairmen, electronic; toolmakers; rollers, 4-hi reversing, assistant (merchant). 21 .................................. Rollers, bar-mill, hi-mill. 22 .................................. Rollers (train set), temper; welders. 23 .................................. Heaters; rollers, billet. 24 .................................. Helpers, first; rollers, rotary heater. 25 .................................. Rollers, mechant, blooming mill. 26 .................................. Rollers, bloom, slab, plate. 27 .................................. Rollers, bar, blooming mill, plate, rail. 28 .................................. Rollers, blooming mill, slab mill, structural, tandem mill. 29 .................................. Rollers, bar, hot strip, primary, tandem. 30 .................................. Rollers, tandem mill. 31 .................................. Rollers, plate, strip. 32 .................................. Rollers. Typical job classifications Job class 1 -2 .................................. Helpers, cold saw;janitors; laborers. 3 .................................... Baggers; bonders, coil; cleaners, die; coaters, pipe; handlers, material; helpers, bar bending, bricklayer, charger, circle sketch shearmen, coder, cold saw, gas washer, ladle line; laborers, vessel; pilers; scalemen; scrapmen (billet shears); skidmen; straighteners; wharfmen; wrenchers. 4 ......... ......... Attendants, oil house; bailers; bundlers; cindermen; daymen; cleaners, pipe; feeders, yoder mill; greasers; hammermen, penumatic; handstraighteners; helpers, bonderizer, chipping machine, corrugating machine, gas washer, heater leveler, nail galvanizer, oiling machine, shearman, shot blaster, sintering machine, straightener, streine shearman; hookers; mixers, refractory; operators, ingot buggy, sweeper; rod-welders; samplers; scalemen; screenmen; sorters; stencilers; topmen; unloaders, stock; wrappers; wrenchers (hot bed). 5 ......... ......... Bundlers; burners; car blockers; chippers; cleaners, boiler, nail; conveyormen; depilers; descalers; dischargers; dumpers, refuse car; grinders, end, pipe; feeders, rotary mill; helpers, armature winder, charger, draw bench, galvanize (outlet), gun operator, hydrostatic tester, machinists, patcher, pump station, shear, slitter, store room attendant, wireman; hookers; laborers, hot work; lidmen; mixers, sinter materials; operators, bed, cold saw, hoist, oiling machine; shotblasters; straighteners, hand; scrap-bailers; stampers; stoppermakers; shearmen, welded fabric; rewinders; reelers. 6 ......... ......... Chargers; convey ormen; cranemen, skull-cracker; coders; drivers, hammer; feeders, coil; helpers, blacksmith, boilermaker, galvanize (inlet), heat treater, millwright, motor inspector, motor room tender, nail machine, pickier, pipefitter, rigger, rotary heater, setup man; oilers, mill; operators, leveler, polishing machine, scrap press, table, transfer car; inspectors, drop test; raggers, roll; reelers; stockers, slab; strippers, coil; tenders, lubrication system. Blockers; chargers; chippers; cleaners, door, nail; cranemen, mould preparation, stockyard, sulphate; crusherman; drillers, rail; feeders, temper mill; helpers, nozzle setter; inspectors, loaders; operators, cold saw, coremaking machine, drill press, gun, nail galvanize, quencher car, sizing mill, transfer car; pointers; scarfers; screenmen; shot-blasters; spoolers, wire; stencilers; stockers-batch pickier; straighteners (gag press); wheel handlers; wipers. 8 ......... ......... Builders, roll; burners; coders, rod mill; cranemen, charging, cold saw, conditioning yard, forging, ladle house, lathe shop, leveler, machine shop, mobde, pickle, saturator, slab yard tractor, tractor, yard; cutter, wire rope; feeders, tandem mdl; grinders, end; helpers, heater, rotary plugger; operators, burning machine, fence machine, finishing machine, hot saw, marking machine, milling machine, roll shop, table, tractor; inspectors, drop test, rail drilling, strip; pluggers, rotary mill; pointers, scarfers (hot); shearmen, circle sketch; straighteners; wiredrawers (block). 9 ......... .............. Cleaners, sheet; cranemen, blooming mill, mdl, mixer, pickling, rod mill, shovel;drivers, fire truck; feeders, tandem mdl; finishers, strip; flask-makers; helpers, keeper, lead burner, wheel press; inspectors, final, finishing end, loaders, slab; liners, ladle; open coders; operators, bar bending, bonderizer, chipping machine, corrugating machine, draw bench, drill press, lathe, table, welded fabric machine; nozzlemen; repairmen, mechanical (open hearth), (axle mill); shearmen, flying, resquare; stitcher-welders; stillmen, ammonia; straighteners; washers, gas. 1 0 ......... ......... Babbittmen; cranemen, hot top, pig machine; drawers, wire (continuous machine); feeders temper mill; helpers, rougher; inspectors, final; larrymen; loaders, by-product; naphthalenemen; nozzlesetters; operators, agitator, assistant box annealer, bonderizer, burning machine, milling machine, piercer bar, pig machine, plate leveler, pump station, scarfing machine, sintering machine, staple machine, upsetter; patchers, oven; reamers, die (round); repairmen, mechanical (ore yard); shearmen, end; spark testers; straighteners; tenders, motor room, sub-station; scrap tin man (basic oxygen). 11 . . . . ......... Coders; helpers, benzol stillmen, larrymen; levermen, finishing; operators, boilerhouse, cambering machine, car dumper, charing machine, door machine, drid press, keysetter, nail machine, reeling machine, speed (roughing), yoder mdl; picklers, batch; potmen, galvanizing; repairmen, refrigeration, scale; setup-men; shearmen, electrolytic line, resquare, slab, streine; furnace man, 2d(basic oxygen). 12 ......... ......... Catchers, bar; cranemen, hot metal, stripper; finishers, strip; gaugers; inspectors, scale, shear; layerout, plate; levermen, roughing; operators, annealing, boilerhouse, galvanizing, hot saw, pusher, scarfing machine; picklers; power engineers, first; repairmen, electrical, gauge, larry car; rod finishers, assistant; shearmen, blooming mdl, flying; washers, gas. Job class Typical job classifications 13 Cranemen, hot metal; finishers, strip; heat treaters; heaters, assistant, rotary mill, soaking pit; inspectors, hot mill; manipulators; operators, charging crane, furnace-heat treat, transfer table, unloader, wheel press; painters; repairmen, air conditioning; roll setters; setup men. 14 Coremakers; finishers, strip; inspectors, crane, motor; keepers; operators, box annealer, screw down; repairmen, automobile, lubrication equipment; roughers; setters, guide; tenders, motor room, stove; welders, arc. 15 Carpenters; cranemen, soaking pit; forgers; gaugers; operators, hi-mill, rotary mill, speedfinishing; pipefitters; rollers, tandem mill-assistant; setup men (upset machine); template maker; furnace man, lst(basic oxygen). 16 Cranemen, ladle; electricians (armature winder), (shop); finishers; rod; heaters; layerout; millwrights; moulders, operators, charging machine, electrolytic tinning line; pourers; riggers; rollers, tandem mild-assistant; roughers, welders. 17 Attendants, automatic reversing rougher; blacksmiths; boilermakers; bricklayers; heaters; operators, continuous annealing line; sheet metal workers; turners, roll. 18 Burners, roll; checkers, pattern; electricians (linemen), (wiremen); heaters, soaking pit; machinist; repairmen, instrument; rollers, temper mill, assistants (rail mill); stillmen, benzol. 19 Patternmakers; rollers, assistant. 20 Heaters, slab, billet; repairmen, electronic; toolmakers; rollers, 4-hi reversing, assistant (merchant). 21 Rollers, bar-mill, hi-mill. 22 Rollers (train set), temper; welders. 23 Heaters; rollers, billet; operator, basic oxygen furnace. 24 Helpers, first; rollers, rotary heater. 25 Rollers, merchant, blooming mill. 26 Rollers, bloom, slab, plate. 27 Rollers, bar, blooming mill, plate, rail. 28 Rollers, blooming mill, slab mill, structural, tandem mill. 29 Rollers, bar, hot strip, primary, tandem. 30 Rollers, tandem mill. 31 Rollers, plate, strip. 32 Rollers. 33 Rollers, 84-mill inch. Table 4. Minimum plant rates, by division, 1937-55 Hourly rates (in cents) Tennessee Coal and Iron Division3 Applications, exceptions, and other related matters Effective date Northern divisions12 Mar. 16,1937 ............................................. Apr. 1, 1 9 4 1 ............................................... Feb. 15,1942 ............................................. 62.5 72.5 78.0 45.0 55.0 60.5 Jan. 1,1946 ............................................... 87.25 69.75 In accordance with retroactive provision of general wage increase effective February 16, 1946. Feb. 16,1946 ............................................. 96.5 79.0 In accordance with general wage increase (18.5 cents an hour) effective February 16, 1946, providing for retroactive payment of one-half of the increase (9.25 cents) to January 1, 1946. Apr. 1,1947 ............................................... 109.0 94.5 Previous differential of 2.5 cents an hour for Duluth plant was eliminated and former 17.5 cents an hour differential for operations of Tennessee Coal, Iron and Railroad Co. was narrowed by 3 cents. July 16, 1948 ............................................. Dec. 1, 1950 ............................................... 118.5 131.0 104.0 121.0 Mar. 1,1952 ............................................... July 26,1952 ............................................. 143.5 143.5 133.5 138.5 June 12,1953 ............................................. Jan. 1,1954 ............................................... 152.0 152.0 147.0 149.5 July 1, 1954 ............................................... 157.0 157.0 July 1, 1955 ............................................... 168.5 168.5 In accordance with August 26, 1942, award of the NWLB, retroactive to February 15, 1942. Award also established common labor rates as guaranteed minimum rates, effective August 26, 1942 (not applicable to apprentices, learners, etc.). Previous differential of 14.5 cents an hour for operations of Tennessee Coal, Iron and Railroad Co. was reduced to 10 cents. Previous differential of 10 cents an hour for operations of Tennessee Coal and Iron Division was reduced to 5 cents. Previous differential of 5 cents an hour for operations of Tennessee Coal and Iron Division was reduced to 2.5 cents. Previous differential of 2.5 cents an hour for operations of Tennessee Coal and Iron Division was eliminated. 1 Minimum plant rates (until February 1947, common plant rate) paid by the U.S. Steel Corp. have long been recognized as key rates in the industry’s wage structure. Before 1942, some job rates were below the minimum common labor rates, but the War Labor Board’s directive order, effective August 26, 1942, raised all lower rates to the common labor level (except for apprentices, learners, etc.). Thereafter, until the job classification plan was introduced in February 1947, the common labor rates constituted the minimum plant rates. Under the job classification plan, rates paid to common laborers depended on classification o f common labor jobs, most of which were higher than the lowest level. 2 Before April 1947, rates at the Duluth, Minn, plant of American Steel and Wire Co. were 2.5 cents an hour lower than the rates listed. 3 Rates not applicable to Holt, Ala. blast furnace operated by this subsidiary between 1942 and 1944. Effective date Applications, exceptions, and other related matters Provision Shift premium pay Mar. 16, 1937 ................................ No provision for shift premium pay. Jan. 4, 1944 (agreement dated Mar. 13, 1945). Afternoon (second) shift- 4 cents an hour; night (third) shift- 6 cents an hour. July 25, 1952 ................................ Increased to: 6 cents an hour for work on afternoon (second) shift; 9 cents an hour on night (third) shift. July 1, 1958 (agreement dated Aug. 3,1956). Increased to: 8 cents an hour for work on afternoon (second) shift; 12 cents an hour on night (third) shift. Aug. 1, 1970 (agreement dated Aug. 1, 1968). Increased to: 10 cents an hour for work on the afternoon (second) shift; 15 cents an hour on the night (third) shift. According to Nov. 25, 1944, award of NWLB. Overtime pay Mar. 16, 1937 . . ........................... Time and one-half for all work over 8 hours a day or 40 hours a week. Apr. 1, 19411.................................. Time and one-half for all work over 5 workdays within the workweek. Employees who failed to complete average hours worked in their department (up to 40 hours in 5 workdays within workweek) were permitted, if work was available in that department, to make up on 6th or 7th day the time lost (up to a maximum o f 40 hours), at regular straight-time rates of pay. Sept. 1 ,1 9 4 2 1 ............................. Time and one-half paid for all work on 6th and 7th day o f a consecutive 7-day period during which first 5 days were worked, whether or not all such days fell within same workweek. Except when, upon agreement between company and union, schedules departing from normal workweek were established. Time and one-half pay for 6 th and 7th day extended in some circumstances to employees laid off on any day within previous 5-day period because of changes in work schedules. Apr. 22, 1947 ................................ Pay for Sunday xvork Sept. 1, 1956 (agreement dated Aug. 3,1956). Time and one-tenth for hours worked on Sunday not paid for on an overtime basis. July 1, 1957 (agreement dated Aug. 3, 1956). Increased to: Time and one-fifth. Sunday premium also paid for reporting allowance hours. Effective date Applications, exceptions, and other related matters Provision Pay for Sunday work-Continued July 1, 1958 (agreement dated Aug. 3,1956). Increased to: fourth. Time and one- Aug. 1, 1973 (agreement dated Aug. 1, 1971). Increased to: Time and one-half. Holiday pay Mar. 17, 1937 ................................ No provision for paying premium wages for work performed on recognized holidays. Agreement specified that no work was to be performed on July 4, Labor Day, and Christmas Day, except in continuous operation. Apr. 1,1941 .................................. Time and one-half for all work required to be performed on 3 sp e c ifie d holidays by employees not engaged in continuous operations. July 4, Labor Day, and Christmas. Sept. 1, 19421 ................................ In accordance with Executive Order 9240 all employees paid time and one-half for work on 6 holidays. Before the national emergency, no regular production work required on specified holidays except in continuous operations (for which payment was made at regular straight-time rates). For noncontinuous operations, days in employee’s normal work schedule that were not worked because o f holiday were counted as workdays for purposes of 6th day overtime pay. Nov. 25, 1944 (agreement dated Mar. 13, 1945). Time and one-half for all work performed on 6 specified holidays. New Year’s Day, Memorial Day, July 4, Labor Day, Thanksgiving Day, and Christmas Day. (Substitute holiday for Memorial Day permitted in 1947 agree ment.) Holidays, whether worked or not, were counted as days worked to determine whether an employee had worked 6 days in his regularly scheduled workweek. In accordance with November 25, 1944, award of the NWLB. Aug. 15, 1952 .................. ............. 6 paid holidays established for which workers received straight-time pay. Double time (total) for work on paid holidays. Holidays were: New Year’s Day, Memorial Day (by local agreement another day could be chosen provided such agreement was reached before April 1 of each year), July 4, Labor Day, Thanksgiving, and Christmas. Aug. 3, 1956 (agreement of same date). Added: Seventh paid holiday. Good Friday. July 1, 1957 (agreement dated Aug. 3,1956). Increased to: Double time and one-tenth (total) for work on 7 specified holidays. July 1, 1958 (agreement dated Aug. 3, 1956). Increased to: Double time and one-fourth (total) for work on holidays. July 1, 1962 (agreement dated Apr. 6, 1962). Added: Employee on layoff in payroll period with holiday to receive holiday pay if he worked or was on vacation in the prior and subsequent payroll periods. Effective date Applications, exceptions, and other related matters Provision Holiday pay-Continued July 1, 1962 (agreement dated Apr. 6, 1962).-Continued In effect and continued: To be eligible for holiday pay, employee must have (1) worked 30 turns since last hired, (2) worked or been on vacation in payroll period with holiday, and (3) worked on scheduled workdays before and after holiday unless unable to do so because of sickness, death in immediate family, or other good cause. Employee to be paid for holiday that fell in scheduled vacation period. Applicable to employee who (1) took previously scheduled vacation during layoff or (2) was recalled but on layoff during scheduled vacation. Jan. 1, 1970 (agreement dated Aug. 1, 1968). Added: Eighth paid holiday. Holiday was the day before Christmas. Aug. 1, 1972 (agreement of Aug. 1, 1971). Added: Ninth paid holiday. Holiday was the day after Thanksgiving Day. Paid vacations Mar. 17, 1937 ................................ Employees with 5 years or more of service- 1 week. 1 week’s vacation pay computed on basis of average hourly earnings and average weekly hours worked during 2 pay periods preceding vacation period (not less than 40 hours nor more than 48 hours). Apr. 1,1941 .................................. Employees consistently employed during year: 3 years and less than 15 years of service- 1 week; 15 years or more- 2 weeks. Method of computing vacation pay same as above. Consistent employment defined as receiving earnings for 60 percent of the pay periods during the year preceding an established eligibility date. Jan. 4, 1944 (agreement dated Mar. 13, 1945). Employees consistently employed during the year: 1 year and less than 5 years of service—1 week; 5 years or m ore-2 weeks. According to Nov. 25, 1944, award o f the NWLB, retroactive to Jan. 4, 1944. Mar. 13,1945 ................................ Apr. 22, 1947 ................................ Minimum time used in computing vacation pay, as outlined above, was 40 hours or the scheduled weekly hours of work, whichever was larger; maximum time was 48 hours or scheduled weekly hours if larger. Vacation allowance in lieu of vacation permitted in interest of war effort. Allowance was computed on basis of average hourly earnings and average weekly hours worked during first 13 pay periods (26 if on weekly basis) of calendar year, but for same maximum or minimum hours on which vacation pay for those employees actually taking vacations was computed. Added: 25 years or more of service—3 weeks. Continuation of vacation allowance in lieu of vacation during 1947. Such allowance applicable to only 1 week of vacation periods of 2 or 3 weeks. Vacation allowance in lieu of vacation was to be discontinued after 1947, but a partial continuance of this practice was permitted in 1948. Effective date Applications, exceptions, and other related matters Provision Paid vacations-Continued Jan. 1, 1952 (agreement dated Aug. 15, 1952). Changed to: 15 or more years of service- 3 weeks. Jan. 1, 1958 (agreement dated Aug. 3,1956). Added: An additional half week’s vacation pay for 3 but less than 5, 10 but less than 15, and 25 or more years’ ser- July 1, 1962 (agreement dated Apr. 6,1962). Jan. 1, 1963 (agreement dated Apr. 6, 1962). Added: Calculation of service for vacation eligibility included only first 2 years of continuous period of absence because of layoff or noncompensable physical disability. Changed: 1 week for employee with 1 but fewer than 3 years of service, 2 weeks for 3 but fewer than 10 years, 3 weeks for 10 but fewer than 25 years, and 4 weeks for 25 years or more. Jan. 1, 1966 (agreement dated Sept. 1, 1965). Aug. 1, 1968 (agreement of same date). Jan. 1, 1969 (agreement dated Aug. 1, 1968). No change in length of vacation period. Eliminated: Requirement that workers receive earnings for 60 percent of pay periods during preceding year and work during calendar year to be eligible for vacation. Added: Employees absent at least 6 consecutive months in preceding year disqualified for benefits. Pay based on average hours worked in first two of four pay periods immediately preceding vacation. Minimum time used in computing vacation pay was 40 hours a week or scheduled plant workweek, whichever was greater; maximum was 48 hours a week or scheduled plant workweek, whichever was greater. Added: With consent of employee, company could grant vacation pay in lieu of time off for weeks of vacation over two in a calendar year in which extended vacation was not scheduled. Added: Vacation bonus of $30 for each week of regular vacation in 1969, 1970, and 1971, to be paid in addition to regular vacation pay. Not applicable to years in which regular vacation was included within an extended vacation except for employees receiving extended vacations allocated under prior plan. Changed: Employees entitled to regular vacations were paid at their average rate of earnings per hour for the prior calendar year. Average rate o f earnings computed by totaling (1) pay received for all hours worked (including overtime pay, holiday, Sunday and shift premium), (2) vacation pay (including pay in lieu of vacation excluding vacation bonus), (3) pay for unworked holidays and other paid leave, and (4) hours excused but not paid for because of union business; and dividing such earnings by total o f (1) hours worked, (2) vacation hours paid (including hours paid in lieu of vacation), and (3) paid but unworked holiday hours. Average rate of earnings to reflect general wage changes, adjusted apprentice rate of pay, and retroactive pay adjustments. Any weeks not having at least 32 hours’ actual work excluded from calculation. Employee was paid for not fewer than 40 nor more than 48 hours for each week o f vacation. Any employee not working in prior year was to have his vacation pay computed on the basis of last calculated vacation rate and hours. Effective date Applications, exceptions, and other related matters Provision Paid vacations—Continued Jan. 1, 1972 (agreement dated Aug. 1,1971). Increased: Vacation bonus to $40 for each week of regular vacation that started in a payroll week that began in April, May, Sept, or Oct., and to $50 for each week of regular vacation starting in a payroll week that began in Feb., March, Nov., Dec. or Jan. (excluding the four con secutive payroll weeks beginning with the week which included December 17). Bonus to remain at $30 a week for vacation during four consecutive payroll weeks beginning with the week which included December 17, and during June, July, and August. Reporting time Mar. 17, 1937 ................................ No provision for pay for reporting time. Apr. 1,1941 .................................. Workers scheduled or notified to report for work paid for minimum of 2 hours if no work at their regular job or other employment provided. Not applicable for strikes, breakdowns, acts of God, reasonable notice by management, or employee fault. Any employee scheduled to and starting work at beginning of a turn (shift) paid for minimum of 4 hours. Apr. 22, 1947 ................................ Minimum payment for workers scheduled or notified to report for work, and for whom no work was provided, increased to 4 hours. Same exceptions as above, except that failure of utilities beyond control of management substituted for breakdowns. Jury-duty pay Aug. 3, 1956 (agreement of same date). Employee to receive difference between 8 hours’ average straight-time earnings and pay ment for jury service for each day of jury duty on which he would have otherwise worked. Employee to present proof of service and amount of pay received. Sept. 1, 1965 (agreement o f same date). Added: Payment defined to include those days on which employee reported for as well as served on jury. Aug. 1, 1968 (agreement o f same date). Added: Jury-duty pay to include employees subpoenaed as witnesses provided employee presented proof of service and amount o f pay received. Effective date Applications, exceptions, and other related matters Provision Funeral leave Aug. 1, 1970 (agreement dated Aug. 1,1968). Established: Funeral leave of up to 3 days for employee attend ing funeral of member of immediate family. Aug. 1, 1971 (agreement of same date). Immediate family was defined as employee’s legal spouse, mother, father, mother-in-law, father-in-law, son, daughter, brother or sister. Employee must establish he attended the funeral. Pay to be computed the same as for jury duty. Added: To definition of immediate family-stepfather, stepmother, stepchildren, stepsister, or stepbrother when they lived with the employee in an immediate family relationship. Relocation allowance July 1, 1962 (agreement dated Apr. 6,1962). Established: Allowances of $55 to $215 for single employee and $180 to $580 for married employee, depending on distance between home plant and another plant in same geo graphic region3 provided transferred employee had 2 years or more o f continuous service, on layoff for 60 days or more, and was not eligible for pension and social security benefits. Benefit provided employee who (1) transferred to plant 50 miles or more from former place of work, (2 ) changed permanent residence, and (3) applied for allowance (interregional trans fers permitted for employee under 60 with 10 years or more of service who could not qualify for immediate pension and who had no recall rights in plant where employed or was not likely to be recalled within 2 years). Sept. 1, 1965 (agreement of same date). Increased: Allowance to range from $130 to $350 for single employees and from $380 to $940 for married employees, depending on miles between plant locations.3 The allowance was to be deducted from monies owed by the company for pay, vacation benefits, SUB, pensions, or other benefits if employee quit or was discharged within 12 months of start of new job. The amount was to be reduced by any relocation allowance or its equivalent payable under Federal or State law. Only one allowance was to be paid to member of a family living in the same residence. Effective date Applications, exceptions, and other related matters Provision Savings and vacatio n plan July 1, 1962 (agreement dated Apr. 6,1962). Established: Plan to provide retirement, savings, and su p p le m e n ta l vacation benefits. Contributions: Company to pay into “financial availability account,” per man-hour worked by covered employees, 3 cents plus thedifference between 9.5cents and the hourly contribution required to raise the SUB plan to maximum financing, up to maximum of 4.5 cents to extent required for payment of benefits. Retirement benefits: Accrual o f credit units-one unit for each 5 years of continuous service before Jan. 1, 1961, credited to employee with continuous service for pension purposes on Mar. 1, 1962. Benefits (for employee retiring after Mar. 1, 1962)-Lumpsum payment on retirement4 of 1 week at 1960 vacation rate of pay5 for each retire ment unit credited to employee, reduced by 10 percent for each full 3 months after the latest of (a) June 30, 1963,6 (b) end of month in which employee reached age 65, or (c) end of month in which employee became eligible to retire on pension, plus accumulated vacation benefits. Eligibility -T o employee who (1) retired at age 65 or after (with or without a pension), (2) retired on immediate (early or disability) pension, or (3) elected a deferred early pension. Monthly supplement to basic 3-cent contribution limited to amount necessary for benefits then due workers who (1) were retiring or (2) had at least 1 vacation credit unit. Proportionate vacation pay provided for fractional units. When finances were not available to pay all benefits due, payments to be made in order of retirement and, if necessary, years of continuous service. If all fund obligations were not paid by Jan. 31, 1963, the provision for 10-percent benefit reduction was not to be made effective for 3 months or until all benefits due were paid, whichever was later. Benefits not to be included in calculating average earnings for pension plan purposes. If savings and vacation plan was terminated, any earned income (except that earned on retirement benefits) not previously added to finances to be prorated to credit of participating employees.7 Effective date Applications, exceptions, and other related matters Provision Savings and vacation plani-Continued July 1, 1962 (agreement dated Apr. 6, 1962).-Continued Savings and vacation benefits: Accrual o f credit u n its-From Dec. 31, 1960 to Jan. 1, 1963: (1) 1 unit for 2 years or more of continuous service or (2) V* unit for each 6 months of continuous service for employee with fewer than 2 years of service or employee retiring between Mar. 1, 1962, and Dec. 31, 1962. For period beginning Jan. 1, 1963: V4 credit unit for each 15 weeks in which employee was credited with 1 SUB unit or more, up to maximum of 1 unit in a 2-calendar-year period. No units credited to employee 65 years old or over and eligible for a pension. Jan. 31, 1963 (agreement dated Apr. 6, 1962). Benefits - 1 week at last regular vacation rate of pay for each vacation unit credited to employee. Benefits not payable until sufficient funds accumulated to reach employee in order of seniority. Options -Employee could elect (1) current vacation in year 1 full unit was accumulated or in succeeding year, or (2) retirement benefits, to be increased by interest at rate earned by fund, but not more than 3 percent, from date of election o f option to earliest of (a) termination of employment, or (b) withdrawal because of hardship.8 Any benefits to which employee was entitled to be paid on application (1) in lump sum for break in service (payment to be made to beneficiary in case of employee’s death), or (2) the entire amount or some part in installments for unemployment after exhaustion o f SUB, serious illness, or other major hardship. Company could, in lieu of paying 3-percent interest, invest in and provide employee with U.S. Government Series E Bonds on retirement. Added: Employee who would have been entitled to vacation benefits as of Apr. 30, 1963, but died between Jan. 31, 1963, and Apr. Q29, 1963, was considered to be entitled to such benefits. Jan. 1, 1964 (agreement dated June 29, 1963). Discontinued: Accrual o f vacation and retirement credits under previous savings and vacation plan. Up to 1 unused vacation credit, earned under prior plan, cancelled for each single-week vacation allocated under new plan; any remaining credits used for retirement benefits under prior plan. Increased: Contributions—To 12.5 cents (from 3 cents) per man-hour worked by covered employees. Additional funds, up to the lesser of 4.5 cents or the excess o f 9.5 cents over the amount per hour required to raise the SUB finances to maximum financing, available in any month when the amount required to raise SUB position to maximum financing was less than company’s maximum monthly SUB obligation.10 Effective date Applications, exceptions, and other related matters Provision Savings and vacation planl-C ontinued Jan. 1, 1964 (agreement dated June 29, 1963).—Continued Changed: Plan to provide speci fied vacation and retirement benefits in successive 5-year periods for senior and junior groups of employees. Senior group to include half o f work force with longest continuous service, junior group to include all other employees.11 Added: /. Extended vacation benefits for senior group: Basis o f selection -Vacations credited to approximately equal numbers of employees every 3 months, based on descending years of con tinuous service, so that each employee received extended vacation during a 5-year period if sufficient funds were available.12 13 First period to run from Jan. 1, 1964, to Dec. 31, 1968. If all employees with identical service could not be placed in senior group, placement to be based on age. Employee with service at least equal to that of lowest member of senior group to be put in that group when (1) he was permanently transferred to groups covered by plan, (2) break in his continuous service was removed, or (3) his continuous service was restored on return to work. Employee entitled to vacation the day after calculation date if he was actively at work on calculation date14 or the day he returned to work if he returned before break in service. Employee who returned to work after break in service not entitled to benefit. Benefit -1 3 weeks minus regular vacation to which employee was entitled, for years of service, determined on basis of earlier of (1) end of year in which number of weeks was determined, or (2) date of termination.15 Extended vacations to be scheduled, insofar as possible, for time requested by employee during year of entitlement or during following calendar year, subject to final decision by company to insure orderly operation of plants. Weekly benefit to equal 40 times average hourly earnings, as computed for regular vacation, excluding premium pay for overtime and Sunday work but including any general wage changes put into effect after vacation computation and before payment o f benefit. Any benefit to which employee was entitled to be paid immediately on break in service or to beneficiary in case o f the employee’s death. Option —employee 63 years old, but under 65, on or before calculation date of extended vacation could (1) take vacation immediately before retirement or (2) postpone benefit until retirement.16 17 For employee exercising option to defer extended vacation until retirement, benefits not increased by any general wage changes put into effect after vacation was allocated. Benefits deferred until retirement reduced 10 percent for each full 3 months by which employee delayed retirement after latest of (a) June 30, 1963, (b) end of month in which he reached 65, or (c) end of month in which he completed 15 years of continuous service. Employee laid off before scheduled extended vacation could request vacation start during layoff. Effective date Applications, exceptions, and other related matters Provision Savings and vacation plan -Continued Jan. 1, 1964 (agreement dated June 29, 1963).-Continued Eligibility -Employee under age 65 or older employee with less than 15 years of continuous service.13 II. Single-week vacation benefits for both groups: Basis o f selection -Priority based on years of continuous service. Benefit -Equivalent to week of regular vacation pay as last calculated before employee was allocated benefit, plus any subsequent general wage changes if last regular vacation was in previous calendar year; available to both groups in first, fourth, and subsequent cycles, limited to junior group during second and third cycles in 5-year period. Eligibility -Employee with 2 years of continuous service (a) under age 65 or (b) older with less than 15 years of con tinuous service. Employee who had received vacation benefits under prior plan put at end o f priority list for first cycle. Benefit cycle began in quarter when funds were available after financing retirement and extended vacation benefits for 1/20 of senior work force and ended when all employees on priority list for that cycle had been allocated a benefit.18 Employee entitled to vacation the day after calculation date if he was actively at work on calculation date, or the day he returned to work if he returned before break 14 in service. Employee not to receive second benefit unless he returned to work before his name was reached second time on priority list. Employee who returned to work after break in service not credited with vacation. Options -Senior employee to receive deferred retirement benefits16 17 for first benefit and pay in lieu of vacation for additional benefits in a 5-year period. Junior employee to choose vacation or deferral of benefits until retirement16 for first 3 benefits and to receive pay in lieu of vacation for additional benefits in a 5-year period. Any benefit employee would have become entitled to at retirement, other than (1) single-week vacation for employee in senior group who retired after Jan. 1, 1964, before becoming entitled to single-week vacation, or (2) the portion o f a retirement benefit based on uncanceled vacation units accrued under prior plan was reduced by 10 percent for each full 3 months by which employee delayed retirement after latest of (a) June 30, 1963, (b) end of month in which he reached 65, or (c) end of month in which he completed 15 years of continuous service. Any benefits to which employee was entitled to be paid immediately on break in service or to beneficiary in case of employee’s death; benefits could be paid in lump sum or installments in case of unemployment after exhaustion of SUB, serious illness, or other major hardship. Vacations limited to 2 weeks, which could be continuous with regular vacation, in any calendar year. Effective date Applications, exceptions, and other related matters Provision Savings and vacation plani—Continued Jan. 1, 1964 (agreement dated June 2 9 ,1963).-Continued III. Retirement benefits: A. Senior group to receive— 1. Extended vacation retire ment benefits13 17 Employee retiring after becoming entitled to extended vacation in the 5-year period in which he retired, to receive extended vacation benefit plus partial retirement benefit (an additional week’s benefit) for each full 6 calendar months between the date of allocation of the extended vacation and the earlier o f (a) his retire ment date or (b) the end of the month in which he becomes 65 and has completed 15 years of c o n t in u o u s service, maximum 9 weeks. Employee retiring before be coming entitled to an extended vacation in the 5-year period in which he retired, to receive extended vacation benefit calculated by using the base period used in calculating the special payment under the noncontributory pension plan.19 2. Single week vacation retire ment benefits13 16 17 — Employee retired after Jan. 1, 1964, before being en titled to single week vaca tion benefit to receive benefit on retirement. B. Junior group............................. Those retiring in the 5-year period starting Jan. 1, 1964, to receive “prior retirement benefits” (retirement benefit under prior plan, calculated at employee’s 1960 vacation rate of pay, plus any vacation benefits under prior plan not canceled before retirement calculated at the rate used in determining single-week vacation benefits at date of retirement) if prior retirement benefit exceeded the benefits calculated under the new plan. Any benefit employee would have received at retirement, other than (1) single-week vacation for employee in senior group who retired after Jan. 1, 1964, before becoming entitled to single-week vacation or (2) portion of retirement benefit based on uncanceled vacation units accrued under prior plan, was reduced by 10 percent for each full 3 months by which employee delayed retirement after latest of (a) June 30, 1963, (b) end of month in which he reached 65, or (c) end of month in which he completed 15 years of continuous service. Employee who retired would be entitled to benefit under provisions o f plan in effect prior to Jan. 1, 1964, that is, a week of vacation pay as calculated for employee’s 1960 vacation5 for each 5 years of service prior to Jan. 1, 1961, plus 1 week for 2 years of service between Jan. 1, 1961, and Dec. 31, 1963, if these units had not been canceled by entitlement to vacation benefits. Effective date Applications, exceptions, and other related matters Provision Savings and vacation pkm-Continued Jan. 1, 1964 (agreement dated June 29, 1963).-Continued IV. Extra benefits for both 17 groups: Funds available after completion of third single-week vacation cycle in 5-year period, to be used as follows: (1) for senior group-to increase number of extended vacations (a) by number o f senior employees who had not received ex tended vacation retirement benefit because of break in service, and (b) by number necessary to bring senior group up to 50 percent of expanded work force (if work force had increased since beginning of 5-year period); (2) for both groups—to pro vide additional single-week vacation cycles or partial cycles. Jan. 1, 1966 (agreement dated Sept. 1, 1965). When extra extended vacation benefits were allocated, employees transferred from junior to senior group on basis of continuous service to increase number of senior employees to half the enlarged work force; their extended vacation or extended vacation retirement benefits to be reduced by any single week vacation benefits to which they had become entitled during 5-year period when they were transferred and which were in excess of those they would have received if they had been in senior group at beginning of period. Added: With consent of employee, company could (1) grant vacation pay in lieu o f 3 weeks of extended vacation, or (2) split an extended vacation and schedule a portion o f it to coincide with a plant shutdown period. With consent of company, employee could elect to use up to 3 weeks separately from balance of extended vacation, if unaffected by (1) or (2) above. A Senior Group Death Benefit was added to the Plan effective Jan. 1, 1964, payable to the surviving spouse, child, grandchild, or parent of Senior Group employees who died after Dec. 31, 1963, but before becoming entitled to an EV or an EV Retirement Benefit. Aug. 1, 1968 (agreement of same date). Increased: Rate of pay for a single-week vacation or an extended vacation allocated after Aug. 1, 1968, under the 1963 Plan (Revised) to adjust to the general wage increase. Based on employee’s earnings record, or the percentage relationship of the increase for the average job classification to the average straight-time earnings of employees covered by the Saving and Vacation Plan (Revised). Jan. 1, 1969 (agreement dated Aug. 1, 1968, and memoran dum of understanding, dated Oct. 21,1968). Changed: Plan to provide additional vacation, savings, and other specified benefits for a second 5-year period. Decreased: Company con tribution to 12.3 cents per man-hour worked by covered employee. Increased: Junior Group extended vacation benefits to 3 weeks. Changed: Weekly benefit to equal pay as calculated for a week of Second 5-year period to run from Jan. 1, 1969 to Dec. 31, 1973. Benefits were not dependent upon availability of accrued funds. If the cost of the Extended Vacation Plan was greater than the amount stated, that amount equal to such excess to be deducted from the Additional Collateral Liability under the 1969 SUB Plan. If benefits cost less than the amounts stated in preceding section, an amount equal to such differences to be added to the Additional Collateral Liability. Options regarding extended vacations for all employees were (1) to take entire allotted extension or (2) to elect Effective date Applications, exceptions, and other related matters Provision Savings and vacation plan—Continued Jan. 1, 1969 (agreement dated Aug. 1, 1968, and memoran dum of understanding, dated Oct. 21,1968).— Continued regular vacation pay, adjusted for any general wage change not otherwise reflected in such regular vacation pay. Aug. 1, 1969 (agreement dated Aug. 1, 1968, and memoran dum of understanding, dated Oct. 21, 1968). Increased: Company contribution to 12.8 cents per man-hour worked by covered employee. Aug. 1, 1970 (agreement dated Aug. 1, 1968, and memoran dum of understanding, dated Oct. 21,1968). Increased: Company contribution to 13.3 cents per man-hour worked by covered employee. Dec. 31, 1973 (agreement of Aug. 1, 1971). Extended: Plan for 5 more years-to Dec. 31,1978. deferment of up to 3 weeks’ benefits until retirement; and for Senior Group employees who were age 60 or older before the end of the vacation benefit year, to defer receipt of the extended vacation until retirement. Extended: Group Death Benefit to apply to Senior and Junior Group employees with at least 2 years’ continuous service. Added: I. Senior Group employees who discontinued employ ment except by death or retirement before becoming entitled to an extended vacation but more than 5 years after being allocated such under the 1963 Plan (Revised) were entitled to receive such benefit. II. Senior Group employees, who discontinued employ ment other than by quitting or discharge before becoming entitled to an extended vacation and who would not otherwise receive such benefit, were to receive a Junior extended vacation benefit. Changed: The arrangement to add or deduct amounts to the Additional Collateral Liability Fund under the SUB Plan, depending on the cost of benefits in the Savings and Vacation Plan, was continued from July 31, 1971. Until Dec. 31, 1971, the 15.1 (was 13.3) cents for each hour worked formula was used. Effective Jan. 1, 1972, the Savings and Vacation Plan was funded on a straight-cost basis. Insurance benefits plan Mar. 1, 1950 (agreement dated Nov. 11,1949). 20 Program of contributory socialinsurance benefits established. Total cost including administrative expenses, 5 cents a man-hour. One-half cost to be borne by company; amount of each employee’s contribution to depend on insurance provided.2 The plan provided: Life insurance -Group term insur ance from $2,000 to $4,500. Reduced to $1,250 upon retirement after age 65 and Benefits applied only during active employment. For layoff, accident, sickness, and hospitalization coverage continued until end of month following month in which layoff occurred; life insurance continued in force for 3 months if employee paid share of premiums. Effective date Applications, exceptions, and other related matters Provision Insurance benefits plan-Continued Mar. 1, 1950 (agreement dated Nov. 11, 1949).20 Continued continued without cost to employee. No reduction until age 65 for total disability before age 60 or retirement on disability pension between ages 60 and 65. Accident and sickness bene fits -$ 2 6 a week up to 26 weeks for any 1 disability caused by nonoccupational accident or sickness. Benefits for accident started on 1st day, for sickness on 8th day. Benefits for maternity dis ability limited to 6 weeks. Hospitalization -National Blue Cross 70-Day Plan covering employees and dependents. Aug. 1, 1951 (agreement o f July 24, 1951). Mar 1 1954 Added: Surgical benefitsNational Blue Shield Plan for employees and dependents with a maximum benefit of $200. Surgical benefits— Point was reached where and additional 50 cents a month was required to continue dependent surgical benefits under the Blue Shield Plan. ................................ Nov. 1, 1954 (agreement dated July 1, 1954 and Sept. 1, 1954). No change in employee and employer contributions unless current contributions were insufficient to pay for additional benefits. In such case, surgical benefits to be continued for dependents of employees who elected to pay an additional sum. Total cost increased to 9 cents a man-hour. One-half of cost to be borne by company; amount of each employee’s contribution to depend on insurance provided.2 For layoff, life insurance continued for 6 months if employee paid monthly premium of 60 cents per $1,000. Changed: Company to pay cost of administering plan. Life insurance-New schedule of group term insurance based on higher wage scales-minimum insurance increased from $2,000 to $3,000; maximum from $4,500 to $5,500. Accident and sickness ben efitsIncreased $14 a week to $40. Added: Benefits to apply to disability caused by accidents on the job or by occupational disease. Employees to receive difference between workmen’s compensation payments and the $40 weekly accident and sickness benefit. No change in $1,250 insurance upon retirement after age 65. Effective date Applications, exceptions, and other related matters Provision Insurance benefits plan--Continued Nov. 1, 1954 (agreement dated July 1, 1954 and Sept. 1, 1954).-Continued Hospitalization -Increased by 50 days to 120 days. Allowance for private room and board increased to $10 a day. Sept. 1, 1954 (memorandum of understanding of June 29, 1954). Surgical benefits- 5 0 cents a month additional employee contribution for dependent coverage discontinued; thus, Blue Shield benefit restored for dependents as a basic benefit. Mar. 15,1956 Hospitalization and surgical benefits improved without additional contributions. Sept. 1, 1956 (agreement dated Aug. 3,1956). Changed to: Total cost based on an initial average of $19 a man-month.25 Company to match employees’ monthly contribution estimated to average $9.50 per worker instead of limiting payment to a fixed amount per man-hour; amount of each employee’s contribution to depend on insurance provided.26 Any increase in cost of insurance during period of agreement to be shared equally between employees and employer. Life insurance: New schedule of group term insurance based on higher wage scales-minimum insurance increased from $3,000 to $3,500; maximum from $5,500 to $6,000.26 Accident and sickness benefits: Changed from a flat benefit of $40 a week to benefits gradu ated from $42 to $57 a week.26 Hospitalization: Benefits im proved and allowance for private room and board in creased to $12 a day. Added: Diagnostic benefits for employees and dependents. Surgical benefits: Increased to a m axim um of $300.27 In-hospital oral surgery, diag nostic X-ray, and diagnostic medical services (electro cardiogram, electroencephalo gram and basal metabolism) added. Insurance upon retirement after age 65 changed from flat $1,250 to benefits graduated from $1,300 to $1,550. Effective date Applications, exceptions, and other related matters Provision Insurance benefits-Con turned Jan. 1, 1960 (agreement dated Jan. 4,1960). Changed to : Company-paid plan28 providing benefits pre viously in effect plus changes described below: Life insurance: Increased by $500. Minimum increased from $3,500 to $4,000; maxi mum from $6,000 to $6,500.29 Accident and sickness benefits: Increased $11 a week. Mini mum increased from $42 to $53; maximum from $57 to $68 a week.29 Aug. 1, 1963 (agreement dated June 29,1963). Life insurance: Increased by $500-minimum to $4,500, maximum to $7,000.31 Accident and sickness benefits: Increased $10 a w eek minimum to $63, maximum to $78.31 Hospitalization: Maximum in creased to 365 days. Reserves and funds accrued under the prior contributory insurance program (other than those accrued for optional benefits) to be applied toward cost of benefits provided under prior program and any balance to be applied toward cost of future benefits provided participants in prior program. Benefits of revised plan applicable to participating employees actively at work on or after Dec. 31, 1959. Benefits o f prior plan continued for those not actively at work on Dec. 31, 1959, until their return to active employment, subject to maximum periods provided in prior plan. Any insurance contributions as of Dec. 31, 1959, to continue during employee’s layoff, leave of absence, or retirement according to provisions of prior program. Insurance during absence because o f occupational or nonoccupational disability continued without contribu tion Employees to pay contributions advanced for them for insurance coverage while on strike in 1959. For strike after June 30, 1962, insurance, except sickness and accident benefits, to continue for 30 days at employee expense and parties to discuss arrangement for further continuation. Existing optional benefits continued at expense of employees. Insurance upon retirement remained at $1,300 to $1,550. Insurance to continue during layoff up to 2 years, with employees paying 60 cents per month per $1,000 after first 6 months. Same benefits to be provided for employees insured under State temporary disability laws.30 Hospitalization and surgical coverage to continue for 6 months for employees with 2 years’ continuous service at date of layoff. Added: Retiree could authorize deduction of premiums for converted policy from pension checks. As in the past, hospitalization and surgical coverage could be converted to individual policy at retirement, with retiree paying full premium. Effective date Applications, exceptions, and other related matters Provision Insurance benefits-C ontinued Aug. 1, 1967 (agreement dated Sept. 1,1965). Plan in effect for hourly paid employees represented by USA and eligible depend ents:32 Company pays entire cost o f employee insurance benefits (except optional life insurance) and of dependents’ hospital, medical, and surgical benefits. For employees only: Basic life insurance before retirement— $4,500 to $7,000 depending on standard hourly wage Optional life insurance of $1,500 to $2,750 depending on standard hourly wage rate, available for employees who paid the entire cost.33 For employees under age 60 totally disabled for more than 6 months, full amount of life insurance continued during period of disability until age 65. Reduced at age 65 depending on employee’s coverage before retirement.33 Life insurance continued in reduced amount for employees at or after age 65, who retire under company noncontributory pension plan. After-retirement life insurance ranged from $1,800 to $2,050 depending on employee’s coverage before retirement.33 Benefits terminate (1) immediately upon retirement at employee’s sole option under the company noncon tributory pension plan at any age with 30 years or more of continuous service, and (2) after the initial 26 weeks of benefits for any type of retirement under the pension plan. Employees eligible for 52 weeks of benefits have benefits in the second 26-week period reduced by amount received under the Social Security Act. Benefits of California and New Jersey employees reduced by amount received pursuant to State disability law. Benefits reduced for occupational sickness or accident by any weekly benefits payable pursuant to any workmen’s compensation law or occupational disease law. Dependent defined as spouse and unmarried children (1) under age 19, (2) at any age if fully dependent because of disability or sickness, or (3) to age 25 if a full-time student.34 Hospitalization benefits for employees or dependents age 65 or over reduced to extent benefits are provided under Medicare Part A; physicians’ services benefits payable at 20 percent of benefits otherwise payable. Company pays charge for Medicare Part B coverage up to $3 per month for each such employee or dependent unless Part B charge for dependent is deducted from Social Security or Railroad Retirement benefit. Maximum of 30 days in 12-month period for mental or nervous disorders or pulmonary tuberculosis. Plan provided $12 a day toward cost o f private room. Benefits were available for extraction of teeth (impacted or not) and dental processes if hospitalization was certified as necessary to safeguard health of patient by a licensed physician or dental surgeon. Full benefits available following 90 days from previous hospitalization. Accident and sickness benefits$70 to $102 a week33 for 26 weeks, plus an additional 26 weeks for employees with 2 years or more of continuous service. Up to 6 weeks of benefits for disability due to pregnancy or resulting child birth. Payable the 1st day of accident and 8th day of sickness when under care of a licensed physician. Hospital-Medical-Surgical: F or em ployees and eligible dependents: Hospitalization -U p to semi private room rate and hospi tal’s regular service for 365 days, plus, for employees with 10 years or more of con tinuous service, an additional 365 days, reduced by hospital benefits paid under California Unemployment Compensation Disability Benefits Act. Effective date Applications, exceptions, and other related matters Provision Insurance benefits-C ontinued Aug. 1, 1967 (agreement dated Sept. 1, 1965).-Continued Maternity —Semiprivate room rate and hospital’s regular service for up to 10 days. R egular h o sp ita liza tio n benefits applied if complica tions resulted from pregnancy. Emergency c a r e ln full for emergency outpatient care and treatment in a member hospital within 48 hours of nonoccupational accident. Outpatient treatm ent- In full for surgical treatment, radiation therapy, and specified diag nostic services.35 Surgical benefits: Surgical schedule -Payment in full on a prevailing fee basis.36 Benefits available 9 months after effective date of coverage. Up to $150 per 12-month period provided for a series of recurrent or related surgical procedures performed in the home, physician’s office, or hospital outpatient department for treatment of the same disease or injury. Benefits provided in or out of a hospital for services of licensed physician; also covers licensed podiatrist acting within the scope of his license and certain oral surgery by doctor of dental surgery. Inpatient surgery benefits also provided if a licensed physician actively assisted operating surgeon, if patient and type of service required such assistance, and if hospital did not employ interns, residents, or house staff. Obstetrical benefits -Payment in full on a prevailing fee basis36 including prenatal and post natal care. Medical benefits: D octors’ ser vices-Payment in full on a prevailing fee basis36 up to 120 days during inpatient confinement. Benefit payable for services in or out of hospital by physician in charge of case. Anesthesia -Payment in full on a prevailing fee basis36 in or out of a hospital when admin istered and billed by a licensed physician other than the operating surgeon or his assist ant who is not an employee of or compensated by the hospi tal, laboratory or other institution. Benefit not applicable to local infiltration anesthetics. Benefits provided concurrent with surgical, obstetrical, and radiation therapy services when necessary because a separate and complicated condition existed that required skills not possessed by the physician performing the above services. Benefits for mental, tubercular, and venereal disease cases limited to 30 days in a 12-month period. Effective date Applications, exceptions, and other related matters Provision Insurance benefits—Continued Aug. 1, 1967 (agreement dated Sept. 1. 1965).-Continued Radiation therapy -Payment in full on a prevailing fee basis36 for treatment by X-ray, radium, external radiation or radioactive isotopes in or out of hospital. Benefit included cost of materials unless provided by a hospital. Benefits payable in conjunction with medical, surgical, or obstetrical services when required and performed by a physician other than the one providing the above named services. Diagnostic X-ray -Payment in full on a prevailing fee basis up to a maximum of $75 in any 12-month period for the diag nosis o f any disease or injury, in or out of hospital, which is customarily billed by the physician who made such examination. Diagnostic examination -Payment in full on a prevailing fee basis up to a maximum of $75 in any 12-month period for elec troencephalograms, electro cardiograms, basal metabolism tests, and radioactive isotope studies in or out of hospital, necessary in the diagnosis of a disease or injury when made or ordered by a licensed physician and customarily billed by him. N o n d u p lic a tio n provision— Hospitalization benefits not payable to extent provided under any other group plan if other plan includes coordina tion of benefits or non duplication provision and is the primary plan; physicians’ services benefits not payable to extent provided under any other group plan if other plan does not include coordination o f benefits or nonduplication provision or includes such provisions and is the primary plan. Aug. 1, 1968 (agreement o f same date, and letter dated Aug. 8, 1968). Changed: Hospital benefits-fox employees and dependents. Private room allowance changed to amount equal to the hospital’s charge for the most common semiprivate room. Covered hospital expenses also payable for services provided under an approved preadmission testing program if employee or covered dependent voluntarily scheduled for such services before admission for surgery. Also covered full hospital charges for treatment in an intensive care unit. Effective date Applications, exceptions, and other related matters Provision Insurance benefits—CContinued Aug. 1, 1970 (agreement dated Aug. 1,1968). Life Insurance -Increased by $ 1 ,0 0 0 fo r a c tiv e employees.37 Employees retiring before age 65 were entitled to the full amount o f life insurance, including optional insurance until age 65. At age 65, basic life insurance continued in reduced amounts. 37 Added: Major medical expense benefits-HO percent of covered medical costs after a deductible of $50 per in dividual but not more than $100 per family in any calendar year. Maximum benefits of $10,000 per in dividual per calendar year, and $20,000 lifetime maximum, increased each January 1 by $1,000 less any benefits paid in previous year, so remaining lifetime maximum available on any January 1 was not less than $1,000 nor more than $20,000. Initial calendar year was Aug. 1, 1970, through Dec. 31, 1971. If employee and one dependent or more or two dependents or more incurred covered medical expenses as a result of the same accident, only one $50 was to be deducted during such calendar year. Any part of the deductible amount applied against covered medical expenses for sickness or accident incurred during the last 3 months of any calendar year was to be subtracted from the deductible amount for the ensuing calendar year. Neither hospital nor home confinement, nor surgical operation was necessary to be eligible for benefits. Covered medical expenses included: Services of licensed physician or podiatrist; services of dentist when necessary to correct damage incurred in an accident; room and board in an accredited hospital at the hospital’s most common semiprivate room rate; other hospital services required for medical or surgical care; anesthetics and administration thereof; diagnostic X-ray and radium treatments; oxygen and administration thereof; blood transfusions, including cost o f blood and blood plasma over 3 pints when a charge is made for it; services of qualified physiotherapist; services of a registered graduate nurse; services o f a licensed practical nurse provided in hospital only, when a registered nurse was not available, and when certified as necessary by attending physician; prescription drugs and medicines dispensed by licensed pharmacists; local professional ambulance services; rental of iron lung or other durable equipment; and artificial limbs or other prosthetic appliances, except replacement of such appliances. Covered medical expenses also included care in an approved convalescent nursing home when care immediately followed prior inpatient hospitalization involving surgery or 3 days’ inpatient hospitalization without surgery and was ordered by physician. Included expenses were room and board up to the most common semiprivate room rate and services of professional and practical nursing personnel for up to 365 days. Benefits were not payable for normal pregnancy care; care in homes or other facilities primarily for care of alcoholics, drug addicts, the blind, the deaf, the mentally deficient or retarded, or persons suffering from tuberculosis or mental or nervous conditions; or care furnished by any governmental body. Effective date Applications, exceptions, and other related matters Provision Insurance benefits—Gontinued Aug. 1, 1970 (agreement dated Aug. 1, 1968). Changed: Effective date o f coverage—AM coverage effec tive on the date on which employee started active work. Also included were benefits for the treatment of mental and nervous conditions only when such conditions or illnesses are amenable to favorable modification. Maximum benefits—$1,000 per individual for each calendar year for covered medical expenses listed above, except for convalescent nursing home care, and for the reasonable and customary charges for the following: (1) Visits to physician for individual or group psychothera peutic treatment in physician’s office or in an approved outpatient psychiatric facility; (2) counseling for patient’s family; (3) psychological testing when prescribed by physician; (4) professional and other necessary auxiliary services when provided through day or night care program; (5) drugs and medications dispensed and charged for by hospital or other facility as part o f regular institutional care programs; and (6) electroshock therapy and anesthesia related thereto. Services for mental deficiency or retardation were not covered. The following expenses were not covered: (1) Dental care except for an accident; (2) eyeglasses or contact lenses except for one pair of eyeglasses or contact lenses and the examination and fitting thereof, following a cataract operation, hearing aids, and examinations or fitting thereof; (3) routine health examinations; (4) cosmetic surgery except where necessitated by accident or injury; (5) services for injury or illness due to war; (6) treatment of disorders o f the feet except when surgery is performed; (7) services of any unlicensed practitioner unless specifically provided for in the program or as required by law; (8) any services for which there was no charge, which were covered under workmen’s compensa tion or provided by any governmental body, or were reimbursed through legal action or settlement; (9) services o f surgical assistants; (10) expenses incurred because of pregnancy, Caesarean section, prenatal or postnatal care except additional expenses resulting from medical or surgical complications. Covered medical expenses for employees or dependents age 65 or over did not include any expense to the extent that benefits were provided under either Medicare Part A or Part B. Dependent coverage became effective on the same date as employee’s coverage except that if, on that date, a dependent was confined in a hospital or other institution for care or treatment or was confined at home under the care of a physician because of a disabling physical or mental illness or injury, major medical expense coverage for that dependent was not effective until the dependent was no longer confined in a hospital or other institution or confined at home under the care o f a physician. Effective date Provision Insurance benefits-Ccmtinued Aug. 1, 1970 (agreement dated Aug. 1, 1968).-Continued C hanged: Termination of coverage-A ll coverage term inates on date employment terminates. Aug. 1, 1971 (agreement o f same date). Increased: Basic life insurance by $2,500 in each earnings class for active employees and by $300 in each class for retirees age 65 and over who retired on or after July 31, 1971.38 Improved Medical care as follows: Added: Physician’s charges for emergency treatment in hospital, clinic, or office. Added: Medical care costs of donors of kidneys and other organs. Added: Abortions and sterili z a tio n p r o c e d u r e s, including vasectomies. Added: Physician’s charges for oral surgical procedures when performed in his office. Increased: Number of days of in-hospital medical care benefits—to 365 for employees with fewer than 10 years of service and 730 for those with more than 10 years. Increased: Maximum duration of hospital benefits and inhospital medical benefits in psychiatric and tuberculosis cases to 60 days in any 12-month period. Increased: Limits on annual diag nostic X-rays and examinations- t o $150 each. Increased: Major m edical-Maxi mum for an individual-to $15,000 per calendar year, and to $25,000 for lifetime. Increased: Annual maximum on psychiatric ca re-to $1,500. Applications, exceptions, and other related matters Effective date Applications, exceptions, and other related matters Provision Insurance benefits-Continued Aug. 1, 1971 (agreement of same date).-Continued Aug. 1, 1973 (agreement of Aug. 1,1971). Increased: Accident and sickness benefits —to range from $78 to $115 a week.38 Changed: Reduced social security benefits no longer to be subtracted from accident and sickness benefits, but unreduced social security benefits to be subtracted during first 26 weeks for employees under age 65. Added: To receive accident and sickness benefits, employee must have submitted a written claim to company within 21 days after disability began, or show good reason why he was unable to furnish such notice. Changed: Duplication o f accident and sickness benefits and pensions eliminated in all circumstances. Added: Donors of kidneys and other organs entitled to accident and sickness benefits. Changed: Maximum duration o f accident and sickness benefits for newly hired employees not to exceed their length of service before disability began. Changed: Accident and sickness coverage to terminate upon date of layoff. Increased: Accident and sickness benefits - t o range from $87 to $129 a week.38 Pension plan Mar. 1, 1950 (agreement dated Nov. 11,1949). Established: Noncontributory pension plan-All employees with at least 15 years of continuous service eligible for pensions upon reaching 65 and thereafter or upon being per manently incapacitated before age 65. Amount of monthly payment: 1 percent of employee’s average monthly earnings during 120 calendar months immediately preceding retirement multiplied by number of years of continuous service. Pension payments as computed by formula reduced by primary benefits to which employee entitled under Federal Old-Age and Survivors’ Insurance, other public pensions, and payments for disability under Federal or State laws (except fixed statutory payments for loss of a bodily member). Pension payments could be reduced by any severance allowance paid at time o f retirement. Effective date Applications, exceptions, and other related matters Provision Pension plan-Cont inued Mar. 1, 1950 (agreement dated Nov. 11, 1949).-Continued Minimum pension including public pension-$100 a month after 25 or more years’ service; pro rata amount for from 15 to 25 years’ service. Minimum pension upon permanent incapacitation-$50 a month up to age 65 and standard minimum thereafter. Entire cost borne by company. Sept. 1, 1954 (memorandum of understanding of June 29, 1954). Nov. 1, 1954 (agreement dated July 1,1954). Pensions for employees retired before Oct. 31, 1954, not to be reduced by the amount of future increases in social security benefits. Minimum monthly pension at age 65 increased to company pay ment of $55 plus primary social security benefits (a total of at least $140)39 after 30 years’ service in place of a total of $100 including primary social security benefits after 25 years’ service; for each year’s service fewer than 30, a new minimum company pension reduced by $2 monthly to $25 for 15 years’ service (ora total of $110 including social security benefits). Company pension benefits as computed by the basic 1-percent formula reduced by a flat $85 a month (the maximum payable at time of agreement under Federal Old-Age and Survivors’ Insurance) rather than actual OASI benefit. A worker receiving the minimum company pension might have a total retirement income over $140 since OASI primary benefits could exceed $85.40 Revised plan not applicable to employees retired before October 31, 1954, except those retired on disability prior to age 65 and receiving workmen’s compensation. Minimum monthly pension for permanent incapacity in creased to $75. Amount of pension calculated under the 1-percent formula no longer reduced because of absence from work in last 6 months preceding retirement on disability. Dropped: Deduction of workmen’s compensation payments from disability pensions before age 65. Effective date Applications, exceptions, and other related matters Provision Pension plan-Continued March 7, 1956 (letter of agree ment dated March 7,1956). Added: Survivors’ optionsEmployee could elect reduced pension during lifetime and, after death, monthly pay ments to beneficiary of (1) same amount or (2) half the am ount employee had received. Nov. 1, 1957 (agreement dated Aug. 3,1956). Minimum monthly pension at age 65 increased to company pay ment o f $2.40 a month for each year of service before Nov. 1, 1957, and $2.50 a month for each year of service thereafter, up to 30 yearsplus social security benefits. Minimum monthly pension of employees who retired under the 1949 plan changed to $2 for each year of service up to 30; for those who retired under the 1954 plan changed to $2.25 a month per year of service up to 30 (plus social security benefits). Minimum monthly pension before age 65 for permanent incapa city changed to the larger of (1) $90 a month less any social security disability benefits payable; (2) minimum pension described above ($2.40 or $2.50 times years of service); or (3) amount under basic 1-percent formula less flat $85 offset for social security or, in workmen’s compensation cases, actual social security if less than $85. Normal minimum there after. Minimum monthly pensions for pensioners already retired for disability as follows: Those entitled to social security disability benefits minimum pension described above ($2 or $2.25 times years of service); those ineligible for social security disability benefits $60 a month if retired under the 1949 plan and $80 a month if retired under the 1954 plan. A dded: E arly retirem en t: Employees aged 60 but less than 65 with 15 years’ continuous service permitted to retire at own option; could elect (1) deferred normal pension starting at age 65 or (2) an immediate pension, actually reduced.41 Added: Deferred vested rights: Employees who have been laid off for more than 2 years or terminated as a result of a permanent shutdown of a plant, department, or a sub division and who at the end of such 2 years or upon such termination had reached age 40 with at least 15 years’ continuous service to receive Effective date Applications, exceptions, and other related matters Provision Pension plan-Con tinued Nov. 1, 1957 (agreement dated Aug. 3 ,1 9 5 6 ).-Continued Jan. 1, 1960 (agreement dated Jan. 4 ,1960). deferred monthly pensions at age 65 based on years of continuous service and on average monthly compensa tion during the 120 months before the expiration o f such 2 years or such termination. Minimum monthly pension at age 65 increased to company pay ment o f $2.50 a month for each year of service before Jan. 1, 1960, and $2.60 a month for each year of service thereafter, up to 35 yearsplus social security benefits.42 Amount deducted for social security benefits from pension benefits, as computed by basic 1-percent formula, reduced to $80. Minimum monthly pension before age 65 for permanent incapa city increased to $100 less any social security disability benefits payable. Alternatives of minimum normal pension or amount under 1-percent formula continued. Early retirement: Added—full pension based on continuous service to date of retirement for (a) employees age 60 but less than 65 with 15 years’ continuous service, retired under mutually satisfactory conditions, and (b) employees age 55 with 20 years or more of service, terminated because of permanent shutdown, layoff, or sickness resulting in break in service.42 Alterna tives of minimum normal pension or amount under 1-percent formula continued. A d d ed: Special retirem en t benefit, providing lump-sum payment equal to 13 weeks’ vacation pay reduced by pay for vacation previously taken in calendar year in which retirement occurs. Company increased pensions for retired employees by amounts up to $5 a month. 43 For pensions based on 1-percent formula, $80 to be deducted as for normal retirement. Employee must be at least age 53 with 18 years’ continuous service on date of shutdown, layoff, or disability. Company could at its option grant a pension before the date of absence, due to layoff, would otherwise result in break in service if employee’s return to work was considered unlikely by employer. Not applicable to those receiving disability or deferred vested pensions. Regular monthly pension payments to commence after 3 months. Employee who has not taken vacation in calendar year not to be entitled to vacation pay in that year. Effective date Applications, exceptions, and other related matters Provision Pension plan-Con tinued July 1, 1962 (agreement dated Apr. 6,1962). Changed: Early retirement41 Full pension based on con tinuous service to date of retirement for employee with 15 years or more of service, who was either age 55 and his combined age and years of service equaled at least 75, or any age and his combined age and years of service equaled at least 80, and (1) whose con tinuous service was broken by permanent shutdown, layoff, or disability, (2) whose con tinuous service was not broken but who was not at work because of (a) election of layoff status under contract terms relating to permanent shutdown or (b) physical dis ability or nonelective layoff and whose return to work was considered unlikely by employer, or (3) who retired under mutually satisfactory conditions. Benefits payable not earlier than month after last month in which employee was eligible for company sickness and accident benefits or statutory nonoccupational disability benefits. Changed: Regular pension not to be reduced by eligibility for or receipt of actuarially reduced public pension. When employee reached age at which public pension was not actuarially reduced, company pension to be reduced by amount of public pension. Changed: Deferred vested rights-Continuous service after reemployment not to be included in calculation of pension for employee who was eligible for, but had not applied for, deferred vested pension. Changed: $80 deduction from early retirement pension based on 1 percent formula eliminated until employee reached earlier of (1) age 65 or (2) eligibility for disability benefit under social security, for employee 55 years old with 20 or more years of service whose employment was terminated because of permanent shutdown, layoff, or sickness resulting in break in service. July 31,1966 (agreement o f Sept. 1,1965). Increased: Minimum monthly pension—to $5 times years of continuous service (up to 35 years maximum). Added: Employee with 30 years or more continuous service could retire at his sole option with a full pension (less applicable deductions) at any age. Increased: Pension payable under basic 1-percent formula, through reduction to $60 of amount deductible therefrom for social security benefits. Added: Monthly pension payable for special early retirement increased by $75 until eligible for full social security pay ments. Company increased pensions (other than deferred vested) for retired employees by $15 per month—actuarially reduced when appropriate. Changed: Survivor’s op tion Election or change of option to be made (1) without evidence of good health (a) before retirement and before age 60 for regular benefits at any age with 30 years or more continuous service, 60/15 (age Added: New right to deferred vested pension if service broken due to disability and pension commencement eligibility reduced to age 60 (at reduced rate). Also provision that severance allowance payments would not be deducted from or charged against such pension. Effective date Applications, exceptions, and other related matters Provision Pension plan—Continued July 31,1966 (agreement o f Sept. 1, 1965).-Continued and service) retirement, or disability retirement (b) before or after retirement, but before age 63 for normal, deferred vested, or 75/80 (age plus service) retirement, (2) with evidence of good health of employees and/or co pensioner at company option (a) before retirement and after age 60 for regular benefits, at any age with 30 years or more continuous service, 60/15 retirement or disability retire ment (b) before or after retirement and after age 63 but before age 65, or before retirement and after age 65 for normal, 75/80, or deferred vested retirement, or (3) in any case, the later of retire ment or age 65, with company consent. July 31, 1969 (agreement dated Aug. 1,1968). Changed: Eligibility for special early retirement to total of 70 years (was 75), age plus years of continuous service at or after age 55. Applicable to employees who were eligible to retire on or after July 31, 1969. Also applicable to employees who applied for retirement pension between July 31, 1968, and July 31, 1969, but who, at that time, were eligible only for a deferred vested pension; or who became eligible for immediate or deferred vested pension during such period but whose continuous service had been broken. Eliminated: $60 monthly social security deduction, when pension was computed as 1 percent of average monthly earnings for last 10 years of continuous service times all years of continuous service. Applicable to employees retired on immediate pension on or after July 31, 1968. Increased: Minimum monthly pension to $6.50 for each year of continuous service; maximum 35 years. Increased: Monthly benefits by $10 for employees retiring before jaly 31, 1968, actuarially reduced where applicable. Effective date Applications, exceptions, and other related matters Provision Pension plan—Continued July 31, 1969 (agreement dated Aug. 1,1968).-Continued Added: Surviving spouse’s benefit. Monthly payments of (1) higher of $75 or 50 percent o f employee’s regular pension to eligible spouse between ages 50 and 62; (2) higher of $25 or 50 percent of employee’s regular pension less 65 percent o f the amount of social security widow’s (or widower’s) benefit for spouse age 62 or over; or (3) for spouse under age 50, higher of $75 or 50 percent o f employ ee’s regular pension less Vi percent per year under 50. July 31, 1972 (agreement dated Aug. 1,1971). Increased: For surviving spouse under age 62, minimum benefit to $100 a month; for spouse age 62 or over, benefit to minimum o f $50 a month or, if higher, 50 percent o f employee’s regular pension less 50 percent o f the amount of social security widow’s (or widower’s) benefit. Changed: Employees eligible for 70/80 pension when electing layoff under plant shutdown rules retain right to retire on 70/80 pension within 90 days after recall. Benefits payable to surviving spouse of participant age 55 or over who was eligible for a monthly benefit, but who died on or after July 3 1,1969, if death occurred before retirement o f participant with at least 15 years’ continuous service; or after retirement and before age 65 for participant who retired on or after July 31, 1969, after reaching age 50 on a 30 year, 60/15, permanent incapacity, or 70/80 retirement plan. Participant’s regular pension was defined as: (1) For a participant who died before retirement, his regular pension before reductions as if he had retired on the date of death and had been age 65; or (2) for a participant who died after retirement, his regular pension before reductions, but including the $75 addition. Increased: Minimum monthly pension to $8 for each of the first 15 years, $9 for each of the next 15 years, and $10 for each year of service over 30, with no upward limit (was 30 years).44 Increased: Percentage used in basic pension calculation formula-to 1.1 percent for each of first 30 years of service and 1.2 percent for each year over 30. Increased: Minimum disability pension for those not eligible for unreduced social security disability pensions-to $150 per month. Changed: Employee who met basic 45/15 requirement entitled to a deferred vested pension if he was terminated for any reason (including quitting) except discharge. Effective date Applications, exceptions, and other related matters Provision Pension plan-Continued July 31, 1972 (agreement dated Aug. 1, 1971).-Continued Increased: The supplement for disability pensioners and those who were retiring under the 70/80 retirement plan but who were not eligible for unreduced social security-to $105 a month. Increased: Normal retirement benefits by $15.00 per month for pensioners retired before July 31, 1971 (except on deferred vested pensions). Employees retired on reduced early retirement or under joint-and-survivor option to receive proportionate increase. Increased: Payments to eligible survivors by $7.50 a month. Changed: Employee’s pension could not be reduced by any compensation received by him for 100 percent loss of use of any member. Supplemental unemployment benefits plan Aug. 3, 1956 (agreement of same date). Plan established to supplement benefits paid under State unemployment systems. Company’s contributions to be paid into a fund which with “contingent liability’' will eventually be built up to a “maximum financing” of 10.5 cents for each man-hour worked in the first 12 of the 14 months that precede the month for which the calculation is made.45 This would be about $200 per employee, assuming an average workyear of about 1,900 hours. Contributions: Company to contribute 3 cents per man-hour actually worked, with a “contingent liability” of an additional 2 cents if needed to pay benefits provided by the plan. Company contributions to fund and increase in contingent liability to cease when fund reached 100 percent “maximum financing.” Payments would be resumed only as necessary to restore this level. Size o f benefits: An amount which when added to State unemployment benefits and other compensation will be the smaller of (1) 65 percent of the employee’s (after tax) weekly straight-time wages for 40 hours of work, or (2) $25 a week for the maximum dura tion of State unemployment b e n e fits and $ 4 7 .5 0 thereafter, with $2 additional for each dependent, up to 4. Benefits to continue for a maximum of 52 weeks. Benefits will be reduced by 25 Plan contingent on obtaining rulings (1) that company contributions are deductible for Federal income tax purposes; (2) that such contributions would be excluded in computation of overtime pay under the Fair Labor Standards Act. If these rulings were not obtained by September 1, 1957, the company’s obligation to contribute to the plan would cease. If the plan was terminated in this manner, the company and the union were to negotiate about modifying the plan or use of the money the company has contributed or would otherwise be obligated to contribute to the fund; if no agreement was reached within 60 days, either party could thereafter resort to a strike or a lockout.49 Effective date Provision Applications, exceptions, and other related matters Supplemental unemployment benlefits plan-Continued Aug. 3, 1956 (agreement of same date).-Continued to 85 percent depending on trust fund position in any month in which the financial position is less than 75 percent.16 If such position is less than 10 percent, no benefits are payable.47 Benefits to be first payable for weeks beginning September 1, 1957, to employees laid off on or after July 1,1957, if favorable rulings from State48 and Federal Governments are obtained. Eligibility: Laid-off employees with at least 2 years’ con tinuous service (who meet certain other requirements) and with credit units will be eligible for benefits after waiting 1 week within the benefit year. To obtain a week of benefits, employees will surrender 1 credit unit until the financial position of the fund declines below 52.5 per cent, when the number of credits surrendered will vary from 1 to 5, depending on length of service and financial position o f the fund.47 Accrual o f credit units: Em ployees will accumulate credit units at the rate of 1/10 unit for each 8 credited hours beginning on or after August 1, 1955. A maximum of 52 credit units can be accumu lated by a worker at any one time. Nov. 30, 1959 (agreement dated Jan. 4 and memorandum of understanding dated Apr. 1, 1960). July 1, 1962 (agreement dated Apr. 6,1962). Once an employee has been credited with units, he cannot earn more than 26 credit units in any 12-month period. “Contingent liability” o f 2 cents per man-hour, accumu lated under previous contract, and cancelled at its expiration, restored. Increased: Contributions: Com pany to contribute amount necessary to raise fund to maximum financing, up to maximum of 9.5 cents per man-hour actually worked.50 Increased: Maximum financing, to the lesser of (1) 12.5 cents for each man-hour worked in the first 12 of the 14 months that preceded the month for which the calculation was made or (2) 1-2/3 times benefits paid in first 60 of preceding 62 months. Balance of contingent liability under prior plan to be continued. Effective date Provision Applications, exceptions, and other related matters Supplemental unemployment benefits plan-Continued July 1, 1962 (agreement dated Apr. 6, 1962).-Continued Changed: Size o f benefits: 24 times employee’s average straight-time hourly earnings plus $1.50 for each dependent up to four, reduced by State unemployment compensation (including dependency allow ance) and other compensation over amount disregarded in determining State unemploy ment benefits:51 52 Straight-time hourly earnings defined as last hourly earnings calculated for vacation purposes excluding overtime and Sunday premiums but including any general wage increases since employee’s last vacation. Proportionate benefit paid employee with fractional credit units. One-half credit unit to be cancelled when employee received reduced benefit because of earnings from another employer or self-employment. Maximum weekly benefits f o r - When employee Employee with 4 Single depenemployee dents Received unemploy ment in surance. . . $37.50 $43.50 Did not receive unemploy ment in surance. . . 60.00 66.00 Benefits to be reduced 40 or 70 percent depending on financial position of SUB plan in any month in which the position was less than 35 percent.53 No benefits payable if fin ancial position was less than 15 percent. Employee ineligible for State benefit because of earnings or receipt in same benefit year of State benefit for weeks he was ineligible for weekly or short week benefit, to receive maximum plan benefit for employee receiving unemployment compensation. In effect: Eligibility—Employee with 2 or more years of continuous service laid off by reduction in force or permanent shutdown of plant, department, or subdivision of department who, after waiting a period of 1 week within the benefit year, (1) applied in person for weekly benefit; (2) received a State unemploy ment insurance benefit unless such benefit was denied because employee (a) had exhausted State benefit, (b) received other compensation that disqualified him for State benefit, (c) had insufficient employment to be covered by Plan benefits to be paid to employee ineligible for State benefit because o f layoff during plant vacation shutdown, provided employee was not eligible for a vacation. Benefit not provided (1) employee who (a) quit work, (b) was suspended or discharged, (c) became unemployed because o f a labor dispute, (d) was unemployed because of refusal of suitable work offered by company, (e) claimed and was eligible for public or private sickness and accident or total disability benefit (except as noted above) or a pension or retirement benefit financed by company, or (f) was eligible for similar benefits from another employer with whom employee had longer service, or (2) for period that layoff coincided with scheduled paid vacation. Added: Benefit extended to employee ineligible for State benefit because of disability occurring during layoff after his sickness and accident insurance was dis continued. Effective date Provision Applications, exceptions, and other related matters Supplemental unemployment benefits plan—Continued July 1,1962 (agreement dated Apr. 6 , 1962).-Continued State system, (d) was unable to work because of disability, or (e) was participating in a Federal training program; (3) was available for work and maintained an active registra tion with State employment system; and (4) applied for, accepted, and did not voluntarily leave suitable employment with another em ployer.54 Accrual o f credit units : V2 unit for each week in which employee had any credited hours. Pre vious 52 credit unit maximum retained. Allowance to be reduced by any Government payment for same purpose. If employee quit (for other than proper cause) or was discharged for cause in first year on new job, company obligation for employee earnings, vacation benefits, SUB, pension, etc., to be reduced by amount of allowance. Added: Short week benefit: Size of benefits52 -Employee’s standard hourly wage rate times difference between 32 and sum of hours (1) worked, (2) not worked but paid for, or (3) not worked for reasons other than lack of work. Eligibility -Employee with 2 years or more of continuous service who had worked some time but fewer than 32 hours in any week. Employees to surrender V2 credit unit for each short workweek benefit. Employee to be credited with units earned under prior plan but not used. Short week benefit to be reduced by one-seventh o f State benefit for each day in workweek for which both types o f payments were made. Standard hourly wage rate defined as average rate during week for which benefit was paid. Jan. 25,1963 (letter of agreement o f same date). Added: Short week benefit: To sum of hours not paid for, hours not worked because employee (1) quit, (2) was suspended or discharged, or (3) was engaged in or unable to work because of a labor dispute. Part-time employee to be eligible when sum o f hours worked and the specified hours not worked fell below 80 percent of regular weekly hours. Jan. 1, 1969 (agreement dated Aug. 1,1968). Increased: Size o f benefits - to 26 times employee’s average straight-time hourly earnings plus $1.50 for each dependent up to 4. Maximum weekly benefits ranged from $52.50 for single employee receiving State unemployment com pensation to $86 for employee with 4 dependents not receiving such insurance.55 Benefits for part-time employees were calculated in proportion to the number o f hours in employee’s normal workweek. Short week benefits were payable to part-time employees who worked less than 80 percent of normal workweek. Changed: Benefit calculation for employees on a Great Lakes vessel to be the same as for all other applicants; seasonal disqualification eliminated when employee was ineligible for State unemployment insurance. Credited hours to include all hours (1) worked, (2) not worked but paid for, and (3) not worked or paid for but lost because o f (a) specified union activities or (b) work-connected compensable disability. i Applications, exceptions, and other related matters Provision Effective date Supplemental unemployment benefits plan-Continued Aug. 1, 1971 (agreement of same date). Increased: Benefits by $30. 56 Severance allowance Mar. 17,1937 ................................ No provision allowance. for severance Apr. 22,1947 ................................ Workers separated because of permanent discontinuance of plant, department, or sub stantial part thereof, paid severance allowance as follows: 3 and under 5 years’ service, 4 weeks’ pay. 5 and under 7 years’ service, 6 weeks’ pay. 7 and under 10 years’ service, 7 weeks’ pay. 10 years’ service or more, 8 weeks’ pay. Severance allowance calculated in same manner as vacation pay. Sept. 1, 1957 (agreement dated Aug. 3,1956). Employees eligible for severance allowance to have option within 30 days after shutdown either to be treated as on layoff (and hence eligible for supplemental unemployment benefits) or to accept the severance allowance. Employee electing severance allowance to have any supplemental unemployment benefit payments received during the 30-day period deducted from the allowance to which he would otherwise have been eligible at the beginning of the period. Earnings protection plan Aug. 1, 1969 (memorandum of understanding dated Aug. 1, 1968, and agreement dated Aug. 1,1969). See footnotes at end of table. Established: Earnings Protection Plan, financed from accrued additional collateral liability or collateral liability under the SUB Plan; however, benefits were limited to 2 cents per man-hour worked by all covered employees on or after Jan. 1, 1969. Plan provided a quarterly income benefit payable to employees whose benefit quarter rate (average hourly earnings for the benefit quarter) was less than 85 percent of his base period rate.57 Plan to protect level of earnings for all employees. Effective date Applications, exceptions, and other related matters Provision Earnings protection plari-Continued Aug. 1, 1969 (memorandum of understanding dated Aug. 1, 1968, and agreement dated Aug. 1, 1969).-Continued Eligibility: Hourly paid em ployees having 2 years’ or more continuous service and who had worked 160 or more hours during the base periods.58 Benefits: Quarterly income benefit equal to an amount which, when added to em ployee’s benefit quarter rate, increased such earnings to 85 percent of his base period rate. Employees assigned lower paying jobs at their own request or due to their own fault were ineligible for quarterly income benefits. Quarterly income benefit was calculated by multiplying: (1) Employee’s total hours worked (plus 1.5 times overtime hours worked) during the benefit quarter by (2) the amount, if any, by which his benefit quarter was less than 85 percent o f his base period rate. Rates were adjusted to neutralize the effects of any general wage increases. Quarterly income benefits were not paid when such payment duplicated other compensation. Quarterly income benefits were payable in full when the benefit ratio59 was 100 percent or more; benefits were reduced or cancelled when the ratio was less than 100 percent.60 Quarterly Income Benefits were cancelled for any benefit quarter, if for the first month of such quarter, the financial position of the SUB Plan was less than 70 percent. Benefits were to remain cancelled until the first benefit quarter for which the financial position of the SUB Plan was 75 percent or more during the first month. Jan. 1, 1972 (agreement o f Aug. 1,1971). Changed: Base periodforEarnings Protection Plan to be the previous calendar year; effect was to roughly double the length of the period during which employees received Earnings Protection Plan benefits. 1 During period covered by Executive Order 9240 (Oct. 1, 1942, to Aug. 21, 1945) this provision was modified in practice to conform to that order. 2 Vacation provisions effective January 1, 1958, can be summarized as follows: Years o f service 1 or more ........ 3 or more ........... 5 or more ........... 10 or more ......... 15 or more ......... 25 or more ......... Duration o f vacation Extra vacation pay 1 w e e k ................... 1 w e e k ...................... 2 w e e k s .................... 2 w e e k s .................. . 3 w e e k s.................... 3 w e e k s................. 0 Vi week 0 Vi week 0 Vi week 3 Relocation allowances were as follows: Allowance M les July 1, 1962__________S ep t 1, 1965 between plants Single Marrie'd Single Married employees employees employees employees 50-99 ................ 100-299 ........... 300-499 ........... 500-999 ........... 1,000-1,999 . . . 2,000 or more . $ 55 75 105 155 215 215 $180 220 290 420 580 580 $130 150 180 230 290 350 $380 420 490 620 780 940 Although no formal time limit was set, it was expected that application for an allowance would be made within a reasonable length of time after change in permanent residence. 4 The plan initially provided employee with the option of withdrawing benefits the year after retirement rather than taking them in a lump sum on retirement. This provision was removed, by letter of agreement dated Nov. 21, 1962, to meet objections of the Internal Revenue Service. 5 Pay for an employee who was not entitled to a 1960 vacation was based on latest year before 1960 in which he was entitled to a vacation, adjusted for any general wage changes between earlier year and 1960. 6 Originally Dec. 31, 1962; provision changed to meet objections of the Internal Revenue Service. 7 Added by letter of Nov. 21,1962. 8 The plan initially provided employee with the option of delaying vacation at least 2 years after entitlement to the benefit. This provision was removed, by letter of agreement dated Jan. 30, 1963, to meet objections of the Internal Revenue Service. 9 Added by letter of Jan. 30, 1963. 10 Maximum available spillover from SUB and 12.5 cent contribution for extended vacation benefits to be 15.625 cents an hour, unless (1) the first cycle of the single-week vacation benefit in any 5-year period was not completed on the 10th calculation date (the date on which vacations were allocated) in that period or (2) the second cycle had not been completed on the 15th calculation date. In these cases, the spillover could be increased until the third cycle was completed. After completion of the third cycle, the spillover was to be reduced with the objective of limiting total accruals from direct contributions for extended vacation benefits and the spillover from SUB to the smaller of 15.625 cents for each hour worked or 125 percent of the amount for each hour worked required to provide an extended vacation benefit and three cycles of single-week vacations; the minimum company contribution for extended vacation and single-week vacation benefits was to be 12.5 cents an hour. 11 Employee covered by plan in effect before Jan. 1, 1964, who retired after June 1, 1963, and on or before Jan. 1, 1964, was entitled to retirement benefit equal to excess of extended vacation retirement benefit over retirement benefit received under prior plan if he had continuous service on date of retirement at least equal to continuous service of any employee placed in senior group on Jan. 1,1964. 12 The quota of benefits allocated on a calculation date was 5 percent o f employees in senior group on starting date. The quota was reduced by number of employees who had become entitled to retirement benefit by retiring before being entitled to benefit and was increased by (a) number o f benefits not allocated on preceding calculation date because of insufficient funds, (b) number of benefits allocated on preceding calculation date to which entitlement did not occur on day after calculation date, and (c) number of employees put in senior group (since the later of beginning of a 5-year period or last calculation date) through transfer or reinstatement. 13 Senior group employee whose continuous service was broken before he was entitled to an extended vacation or to an extended vacation retirement benefit was paid single-week vacation benefits to make total benefits received in a 5-year period equal to number he would have received as member of junior group from date he was placed in senior group until break in service. 14 Employee was “actively at work on calculation date” if he (1) worked during pay period including that date or, if on vacation on that date, during immediately preceding or following period or (2) was officially excused or absent because o f legally compensable disability. 15 Deduction of regular vacation did not affect computation of special pension plan payment that would have been made if this savings and vacation plan had not been in effect. 16 If employee elected to postpone benefits until retirement, company could (1) deposit benefit funds in trust fund to be increased at rate fund increased or (2) invest benefit funds in U.S. Government Series E bonds or their equivalent. At date of payment, bonds (or cash redemption value if employee chose) were turned over to employee with any uninvested cash in his account. Any amount deposited in trust fund because employee elected to defer benefits until retirement could be paid for unemployment after SUB was exhausted, serious illness, or other major hardship. 17 Payment for benefits other than vacation time off was not included in computing earnings for (1) the pension plan, (2) regular vacations, or (3) any other purpose. 18 Employee who was allocated vacation benefit during first cycle beginning after Dec. 31, 1963, but was not actively at work on applicable calculation date was entitled to benefit if he had one uncanceled vacation unit accrued under plan in effect before Jan. 1, 1964. 19 The base period for this special payment was the year used in computing the last vacation to which the employee was or would have been entitled. 20 Company contributions began Feb. 1,1950. 21 A contributory group life insurance plan and various voluntary plans financed by employees were previously in effect. 22 Schedule of benefits and employee contributions, in addition to the National Blue Cross 70-Day Hospitalization Plan: A cciden t Em ployee’s and sickness monthly cost insurance -------------------------Life (weekly With No insurance benefits) dependents dependents E m ployee’s standard hourly wage rate Less than $ 1 .2 9 ......................... . . $1.29 but less than $ 1 .5 7 ......... $1.57 but less than $ 1 .8 6 ......... $1.86 but less than $ 2 .1 5 ......... $2.15 but less than $ 2 .4 3 ......... . . $2.43 and o v e r ........................... $2,000 2,500 3,000 3,500 4,000 4,500 $26 26 26 26 26 26 $2.90 3.15 3.35 3.60 3.80 4.05 $4.15 4.40 4.60 4.85 5.05 5.30 23 Benefits o f the revised plan applied to participating employees actively at work on or after Nov. 1, 1954. Benefits of the plan in effect before that date were continued for participating employees not actively at work on Nov. 1, 1954, until they return to active employment. 24 Schedule of benefits and employee contributions, in addition to the National Blue Cross 120-Day Hospitalization Plan and National Blue Shield Surgical Plan revised as follows: A cciden t Em ployee’s and sickness monthly cost insurance -------------------------Life With (weekly No insurance benefits) dependents dependents E m ployee’s standard hourly wage rate* Less than $ 1 .7 3 ......................... . . $1.73 but less than $ 2 .0 6 ......... $2.06 but less than $ 2 .3 9 ......... . . $2.39 but less than $ 2 .7 8 ......... $2.78 but less than $ 3 .1 1 ......... $3.11 and o v e r ........................... $3,000 3,500 4,000 4,500 5,000 5,500 $40 40 40 40 40 40 $6.25 6.50 6.70 6.95 7.15 7.40 $7.50 7.75 7.95 8.20 8.40 8.65 *On basis of Nov. 1, 1954 wage scale, excluding incentive earnings. 25 Benefits of the revised plan were applicable to participating employees actively at work on or after September 1, 1956. Benefits of the plan in effect before that date were continued for participating employees not actively at work on September 1, 1956, until they return to active employment. 26 Schedule of benefits—in addition to the National Blue Cross 120-Day Hospitalization Plan and National Blue Shield Surgical Plan-and employee contributions revised as follows: E m ployee’s standard hourly wage rate* Life insurance -------------------Before After retire retire ment ment Less than $ 1 .9 4 ................ . $3,500 $1,300 $1.94 but less than $2.32 . . 4,000 1,350 1,400 $2.32 but less than $2.70 . . 4,500 $2.70 but less than $3.14 . . 5,000 1,450 $3.14 but less than $3.52 . . 5,500 1,500 $3.52 and o v e r.................. . 6,000 1,550 Accident Employee's and sickness monthly cost insurance (weekly No With benefits) dependents dependents $42 45 48 51 54 57 $7.50 7.80 8.10 8.40 8.70 9.00 *On basis of Sept. 1, 1956, wage scale, excluding incentive earnings. $ 9.50 9.80 10.10 10.40 10.70 11.00 27 In addition, for steelworkers in the State of Pennsylvania who are married and earn $6,000 a year or less and single employees who earn $4,000 or less, the schedule of surgical benefits will provide full payment for the procedure. 28 As indicated earlier, all or part of any increase due Dec. 1, 1960, and Oct. 1, 1961, under the cost-of-living escalator clause will be used to offset any increase in insurance costs above a state amount instead o f being paid out to cash to the employees. 29 Schedule of benefits-in addition to the National Blue Cross 120-day Hospitalization Plan and National Blue Shield Surgical Plan-revised as follows: Before retirement A fter retirement Accident and sickness insurance (weekly benefits) $4,000 4,500 5,000 5,500 6,000 6,500 $1,300 1,350 1,400 1,450 1,500 1,550 $53 56 59 62 65 68 Life insurance Employee’s standard hourly wage rate* Less than $ 2 .0 9 .................................... $2.09 but less than $ 2 .4 9 .................... $2.49 but less than $ 2 .8 9 .................... $2.89 but less than $ 3 .3 6 .................... $3.36 but less than $ 3 .7 6 .................... $3.76 and o v e r ...................................... *On basis of Jan. 1, 1960 wage scale, excluding incentive earnings. 30 Employee to pay cost o f benefits provided under law in certain States in excess o f program benefits. 31 Schedule of benefits—in addition to the National Blue Cross 120-day Hospitalization Plan and National Blue Shield Surgical Plan-revised as follows: Employee's standard hourly wage rate* Before retirement A fter retirement Accident and sickness insurance (weekly benefits) Less than $ 2 .2 4 .................................. ___ $2.24 but less than $ 2 .6 6 .................. $2.66 but less than $ 3 .0 8 .................. $3.08 but less than $ 3 .5 7 .................. $3.57 but less than $ 3 .9 9 .................. ___ $3.99 and o v er.................................... ___ $4,500 5,000 5,500 6,000 6,500 7,000 $1,300 1,350 1,400 1,450 1,500 1,550 $63 66 69 72 75 78 Life insurance *On basis of Aug. 1, 1963 wage scale, excluding incentive earnings. 32 The benefits listed consistute the entire plan in effect on Aug. 1, 1967, including provisions in effect prior to Aug. 1, 1967 (some of which were not previously reported). 33 Schedule o f life and accident insurance benefits was as follows: Employee ’s standard hourly wage rate* Before retirement After retirement Accident and sickness insurance (weekly benefits) Less than $2.59 ...................................... $2.59 but less than $ 3 .0 4 ....................... $3.04 but less than $ 3 .4 9 ....................... $3.49 but less than $ 4 .0 2 ....................... $4.02 but less than $ 4 .4 7 ....................... $4.47 and o v e r ........................................... $4,500 5,000 5,500 6,000 6,500 7,000 $1,800 1,850 1,900 1,950 2,000 2,050 $ 70 76 83 89 96 102 Basic life insurance Optional life insurance (at employee cost) Monthly Life cost to employee insurance $1,500 1,750 2,000 2,250 2,500 2,750 $1.44 1.68 1.92 2.16 2.40 2.64 *On basis of Aug. 1, 1967 wage scale as shown in table 2c. **Amount applicable for employees retired (other than deferred vested) at or after age 65, or upon attainment of age 65 if retired earlier; before age 65, the full amount of life insurance in force before retirement is continued. 34 Dependent children included (1) blood descendant of employee, (2) children legally adopted and/or awaiting adoption, (3) stepchildren who reside with employee, and (4) children permanently residing with and dependent for sole support on the employee as head o f household if employee was related to children by blood, or marriage, or as legal guardian. 35 Specified diagnostic services included X-ray examinations with films, basal metabolism tests, radioactive isotope studies, electrocardiograms, and electroencephalograms, but excluded work-up procedures in the outpatient department when the patient is to be admitted as an inpatient. 36 Prevailing fee for a particular service or medical procedure was determined by the insurance carrier taking into consideration (1) the fee usually charged by a doctor, (2) the customary fee charged in a given locality by most doctors of similar training and experience in the performance of the service or medical procedure, and (3) recognition of unusual circumstances or medical complications that required additional time, skill, or experience. 37 Schedule of life and accident insurance benefits were as follows: E m ployee’s standard hourly wage rate * Before retirement After retirement** Accident and sickness insurance (weekly benefits) Less than $3.05 ...................................... $3.05 but less than $ 3 .5 6 ....................... $3.56 but less than $ 4 .0 7 ....................... $4.07 but less than $ 4 .6 7 ....................... $4.67 but less than $ 5 .1 8 ....................... $5.18 and o v e r ......................................... $5,500 6,000 6,500 7,000 7,500 8,000 $1,800 1,850 1,900 1,950 2,000 2,050 $ 70 76 83 89 96 102 Basic life insurance Optional life insurance (at employee cost) ----------------------------------Monthly Life cost to insurance employee $1,500 1,750 2,000 2,250 2,500 2,750 $1.44 1.68 1.92 2.16 2.40 2.64 *Based on nonincentive standard hourly wage rate in effect on Aug. 1,1970. **If the employee retired under the company noncontributory pension plan (other than deferred vested) before age 65 and his life insurance was not being continued according to the provisions relating to total disability, the full amount of his life insurance, including any optional life insurance, would be continued until the end of the month in which he attained age 65. At the end of the month in which he attained 65, any optional life insurance would terminate and the amount o f his basic life insurance would then be reduced to the amount in the above schedule as life insurance after retirement. 38 Schedule of life and accident insurance benefits was as follows: Basic life insurance Employee’s standard hourly wage rate Less than $3,565 .................................... $3,565 but less than $4,105 ................ $4,105 but less than $4,645 ................ $4,645 but less than $5,275 ................ $5,275 but less than $5,815 ................ $5,815 and over....................................... Before retirement After retirement $ 8,000 8,500 9,000 9,500 10,000 10,500 $2,100 2,150 2,200 2,250 2,300 2,350 Accident and sickness insurance (weekly benefits) Aug. 1, Aug. 1, 1973 1971 $ 78 85 93 100 108 115 $ 87 95 104 112 121 129 Optional life insurance (at employee cost) Monthly U /> U IV Life insurance employee $1,500 1,750 2,000 2,250 2,500 2,750 $1.44 1.68 1.92 2.16 2.40 2.64 39 At time o f agreement, some steel employees with 30 years’ service might be eligible for OASI benefits of less than $85 and thus receive total monthly pensions of less than $140 but this number would be small. According to the company, arrangements were made whereby these employees actually received total pension (including social security) of $140. 40 Under 1954 amendments to the law, maximum OASI benefits had increased to $98.50 by Nov. 1, 1954, and were to rise further to $108.50 by July 1, 1956. 41 Effective Nov. 1, 1957, amount of immediate pension payable to employee who voluntarily retired at age 60 with at least 15 years of continuous service was based on following percentage: Age of retirement 60 61 62 63 64 65 ............................................................................................... ............................................................................................... ............................................................................................... ............................................................................................... .............................................................................................. ................................................................................................ Percent o f pen sion 67.18 72.36 78.14 84.60 91.84 100.00 42 Definition of continuous service was changed to extend the period before service was broken up to 5 years (was 2 years) after layoff. Previous practice of crediting up to 2 years of layoff as years of service for computing retirement benefits continued. 43 This provision was included in a letter to the union from the company dated Jan. 5, 1960. The $5 increase was provided for all pensioners except those receiving a reduced amount under an option election, who received the appropriate portion of the increase. 44 Differences in minimum monthly pension payment between old plan and new for selected years of service were as follows: Monthly 1968 1971 Agreement Agreement increase Years 15 20 25 30 35 40 45 ...................................... ...................................... ...................................... ...................................... ...................................... ...................................... ................. .................... $ 97.50 130.00 162.00 195.00 227.50 227.50 227.50 $120.00 165.00 210.00 255.00 305.00 355.00 405.00 $ 22.50 35.00 47.50 60.00 77.50 127.50 177.50 45 Beginning in November 1958, maximum financing will be revised downward according to the following scale, if during the first 12 o f the last 14 months the average weekly benefit payment falls below $16: The adjusted maximum financing for the month will be the following per centage o f the maximum financing I f the average weekly benefit is $16 or m o r e ......................................................... $12 to $ 1 5 .9 9 ...................................................... $8 to $ 1 1 .9 9 ......................................................... Less than $ 8 ......................................................... 100 80 60 40 46 In September 1957, the financial position o f the fund (for purposes o f determining benefit levels) will be considered to be 100 percent if total finances equal 5 cents times hours worked in the applicable 12-month period. Subsequently, until normal maximum financing is first reached (but no later than July 1959), the maximum will be computed on the basis of 5 cents times hours worked in the applicable 12-month period plus on-fourth of 1 cent for each month after September 1957. 47 The amount of weekly benefit and number of credit units to be canceled for a week o f benefits is summarized as follows: The weekly benefit I f the financial position applicable to the shall beweek for which the weekly benefit is paid is— And if the continuous service o f the applicant is 2 to 8 8 to 15 15 years years and over years The credit units canceled for such benefits shall b e - Percent 75.0 percent or m o r e ........................... 67.5 but less than 75.0 p e r c e n t......... 60.0 but less than 67.5 p e r c e n t......... 52.5 but less than 60.0 p e r c e n t......... 45.0 but less than 52.5 p e r c e n t......... 38.0 but less than 45.0 p e r c e n t......... 31.0 but less than 38.0 p e r c e n t......... 24.0 but less than 31.0 p e r c e n t......... 17.0 but less than 24.0 p e r c e n t......... 10.0 but less than 17.0 percent ......... Less than 10.0 percent......................... 100.0 75.0 67.5 60.0 52.5 45.0 37.5 30.0 22.5 15.0 0 1.00 1.00 1.00 1.00 1.25 1.25 2.00 2.00 2.00 5.00 1.00 1.00 1.00 1.00 1.00 1.00 1.25 1.25 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.25 48 If there was any State in which supplementation was not permitted, the parties were by August 1957 to negotiate an alternative arrangement for providing benefits to workers in such States. If possible, this arrangement was to provide for payment of benefits in a lump sum at the termination o f periods of layoff or of State benefits, with further payments in the latter case to be made on a weekly basis. 49 Necessary rulings were obtained so that plans went into effect as scheduled. 50 Agreement also provided for the usual Government rulings which were obtained. 51 In Pennsylvania, earnings in excess of $6 or 3/10 o f unemployment insurance weekly benefit amount. 52 Maximum benefits were: Number o f dependents None 1 2 3 4 or more When receiving unemployment insurance......................................... . .$37.50 $39.00 $40.50 $42.00 $43.50 When not receiving unemployment insurance......................................... . . 60.00 61.50 63.00 64.50 66.00 53 Benefits to be reduced (1) 40 percent when trust fund position was 25 percent but less than 35 percent, (2) 70 percent when fund was 15 percent but less than 25 percent. 54 Agreement provided that the company was to revise arrangements in States that did not permit supplementations to the extent necessary to conform to the revisions in April 1962 agreement and called for installation of alternate arrangements in any State that did not permit supplementation in the future and for installation of the SUB plan in any State that removed its ban against SUB. 5 5 Maximum benefits were: Number o f dependents None 1 2 3 When receiving State unemployment compensation . . . . .$52.50 $54.00 $55.50 $57.00 When not receiving State unemployment compensation . . . . . 80.00 81.50 83.00 84.50 4 or more $58.50 86.00 56 Maximum SUB benefits were: Number o f dependents None 1 2 3 When receiving State unemployment compensation . . . . .$82.50 $84.00 $85.50 $87.00 When not receiving State unemployment compensation . . ...1 1 0 .0 0 111.50 113.00 114.50 4 or more $88.50 116.00 57 Base period rate was the average earnings for the base period (footnote 58) plus the amount per straight-time hours worked of any quarterly income benefit earned during the base period. 58 Base period was defined as the 4 calendar quarters immediately preceding the benefit quarter. During the initial year (1969), April, May, June, and July were considered a calendar quarter: August and September were also considered a calendar quarter. 59 The benefit ratio was equal to the lesser of 125 percent or the percentage that the available balance of funds at the end of the benefit quarter was of the total quarterly income benefits for which employees had become eligible. 60 Payment o f quarterly income benefits otherwise payable was dependent on the benefit ratio as follows: Benefit ratio for benefit quarter 100 percent or m ore...................................................... 75 percent or more, but less than 100 p ercen t......... Less than 75 percent .................................................... Quarterly income benefits for quarter were Payable in full Reduced by 50 percent Cancelled If the QIB’s for a benefit quarter were reduced or cancelled, for each succeeding benefit quarter until the first benefit quarter following a benefit quarter as to which the benefit ratio was 125 percent, all Quarterly Income Benefits otherwise payable to employees were payable as follows: Benefit ratio for benefit quarter 125 percent .................................................................... 75 percent or more, but less than 125 p ercen t......... Less than 75 percent .................................................... Quarterly income benefits for quarter were Payable in full Reduced by 50 percent Cancelled Wage chronologies available The following wage chronologies are currently being maintained. Bulletins or reports for which a price is indicated are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, or from the regional offices of the Bureau of Labor Statistics listed on the inside back cover. (Order by check or money order; do not send cash or stamps.) Publications for which no price is indicated and those designated as out of print are not available from the Superintendent of Documents but may be obtained, as long as supplies are available, from the Bureau of Labor Statistics, Washington, D.C. 20212, or from the Bureau’s regional offices. Out-of-print items also may be available for reference in leading public, college, or university libraries. Before July 1965, basic wage chronologies and their supplements were published in thn Monthly Labor Review and released as Bureau reports. Wage chronologies published later are available only as bulletins (and their supplements). Summaries of general wage changes and new or changed working practices are added to bulletins as new contracts are negotiated. Aluminum Company of America with United Steelworkers of America and Aluminum Workers International Union— Nov. 1939-May 1974, BLS Bulletin 18152 American Viscose (a division of FMC Corp.)— 1945-67, BLS Bulletin 1560.1 June 1968-June 1974, Supplement to BLS Bulletin 1560 (free). The Anaconda Co.— 1941-58, BLS Report 197.1 Armour and Company1941-72, BLS Bulletin 1682 (90 cents). A. T. & T.—Long Lines Department— 1940- 64, BLS Bulletin 1443.1 1965-70, Supplement to BLS Bulletin 1443 (free). Atlantic Richfield Co. (former Sinclair Oil Companies’ facilities)— 1941- 72, BLS Bulletin 1771 (85 cents). January 1973-January 1975, Supplement to BLS Bulletin 1771 (free). Berkshire Hathaway Inc.— 1943-69, BLS Bulletin 1541.1 1969-71, Supplement to BLS Bulletin 1541 (free). Bethlehem Atlantic Shipyards— 1941-68, BLS Bulletin 1607.1 1969-72, Supplement to BLS Bulletin 1607 (free). Bituminous Coal Mine Operators and United Mine Workers of America— Oct. 1933-Nov. 1974, Bulletin 1799 (70 cents). The Boeing Co. (Washington Plants)— 1936-67, BLS Bulletin 1565.1 Commonwealth Edison Co. of Chicago and International Brotherhood of Electrical Workers— Oct. 1945-Mar. 1974, BLS Bulletin 1808 (85 cents). Dan River Inc.— May 1943-January 1972, BLS BuUetin 1767 (55 cents). Federal Classification Act Employees— 1924-68, BLS Bulletin 1604.1 Aug. 1968-Oct. 1973, Supplement to BLS Bulletin 1604 (free). Firestone Tire and Rubber Co. and B.F. Goodrich Co. (Akron Plants)— 1937-73, BLS Bulletin 1762 (85 cents). Ford Motor Company— June 1941-September 1973, BLS Bulletin 1787 ($1.25). International Harvester Company— 1946-70, BLS Bulletin 1678 (1.10 cents). 1970-73, Supplement to BLS Bulletin 1678 (free). International Paper Co., Southern Kraft DivisionDec. 1937-May 1973, BLS BuUetin 1788 (55 cents). International Shoe Co. (a division of Interco, Inc.)— 1945-74, BLS BuUetin 1718 (60 cents). Lockheed-CaUfornia Company (a division of Lockheed Aircraft Corp.)— 1937-67, BLS Bulletin 1522.1 Martin-Marietta Corp.— 1944- 64, BLS BuUetin 1449.1 1965-68, Supplement to BLS BuUetin 1449 (free). Massachusetts Shoe Manufacturers and United Shoe Workers of America (AFL—CIO)— January 1945-January 1975, BLS BuUetin 1800 (60 cents). New York City Laundries— 1945- 64, BLS BuUetin 1453.1 1965-72, Supplement to BLS BuUetin 1453 (free). North American Rockwell Corp.— 1941-67, BLS BuUetin 1564.1 1967- 70, Supplement to BLS BuUetin 1564 (free). North Atlantic Longshoremen— 1934-71, BLS BuUetin 1736 (90 cents). Pacific Coast ShipbuUding— 194167, BLS BuUetin 1605.1 Pacific Gas and Electric Co.— 1943-73, BLS BuUetin 1761 (90 cents). Pacific Longshore Industry— 1934-70, BLS BuUetin 1568.1 RaUroads—Nonoperating Employees— 1920-62, BLS Report 208.1 Swift & Co.— 1942- 73, BLS BuUetin 1773 1 Western Greyhound Lines— 1945-67, BLS BuUetin 1595.1 1968- 72, Supplement to BLS BuUetin 1595 (free). Western Union Telegraph Co.— 1943-67, BLS Bulletin 1545.1 1968-71, Supplement to BLS Bulletin 1545 (free). 1 Out of print. See Directory o f Wage Chronologies, 1948-72, for Monthly Labor Review in which reports and supplements issued before July 1965 appeared. 2 Price not yet available. BUREAU OF LABOR STATISTICS REGIONAL OFFICES Region V Region I 1603 JFK Federal Building Governm ent C enter Boston, Mass. 02203 Phone: 223-6762 (A rea Code 617) Region II 8th Floor, 300 South W acker Drive Chicago, III. 60606 Phone: 353-1880 (A rea Code 312) Region VI Suite 3400 1515 Broadway N ew York, N.Y. 10036 Phone: 971-5405 (A rea Code 212) 1100 Com m erce St., Rm. 6B7 Dallas, Tex. 75202 * Phone: 749-3516 (Area Code 214) Regions VII and VIII * Region III P.O. Box 13309 P hiladelphia, Pa. 19101 Phone: 597-1154 (A rea Code 215) Regions IX and X ** Region IV Suite 540 1371 P eachtree St., NE. Atlanta, Ga. 30309 Phone: 526-5418 (A rea Code 404) Federal Office Building 911 W alnut St., 15th Floor Kansas City, Mo. 64106 Phone: 374-2481 (A rea Code 816) 450 Golden Gate Ave. Box 36017 San Francisco, Calif. 94102 Phone: 556-4678 (Area Code 415) Regions VI! and V III are serviced by Kansas City Regions IX and X are serviced by San Francisco
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