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U N IT E D S T A T E S D E P A R T M E N T O F L A B O R Frances Perkins, Secretary BUREAU OF LABOR STATISTICS Isador Lubin, Commissioner (on leave) A . F. Hinrichs, Acting Commissioner + W a g e Structure o f the Motor-Vehicle Industry + P repared b y H a rold R . H osea an d G eorg e E . V o ta v a D IV IS IO N O F W A G E A N A L Y S IS R o b e r t J. M y e rs, C h ief B ulletin 7<lo. 706 (Reprinted w ithout change from the M onthly Labor Review , February and March 1942] UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1942 For sale by the Superintendent o f Documents, Washington, D. C. Price 10 cents CONTENTS Page Summary________________________________ Purpose and scope of the study_________________________________________ Characteristics of the industry__________________________________________ Coverage of the survey_________________________________________________ Trend of employment, pay rolls, earnings, and hours, 1923-41___________ Earnings and hours in the automobile division__________________________ Earnings and hours in the automotive-parts division____________________ Motor-vehicle industry as a whole______________________________________ Annual earnings of Michigan mo tor-vehicle workers_____________________ 1 3 4 8 11 18 27 42 44 L E T T E R O F T R A N S M IT T A L U n ited S tates D epartm e nt of L a b o r , B u r e a u of L ab o r S ta tistic s , Washington, D. C., February 14, 191$. The S e c r e ta r y of L a b o r : I have the honor to transmit herewith a report covering a study made by the Bureau of Labor Statistics of the wage structure of the motor-vehicle industry. A. F. H in rich s , Acting Commissioner. Hon. F ran ces P e r k in s , Secretary oj Labor. (XI) PREFACE The field study of earnings and hours in the motor-vehicle industry, upon which this report is based, was conducted during May and June 1940. Between that time and the virtual cessation of pleasure-car production late in 1941, there were substantial increases in the earn ings of workers in the industry. The changes appear, however, to have been of a character which raised general levels of earnings with out introducing important changes in the fundamental characteristics of the industry’s wage structure. The data contained in this report are thus rendered somewhat more important, historically at least, for they supply a picture of an industry which, because of the conver sion to war production, no longer exists as such. The report which follows appeared in the form of two separate articles in the M onth ly L ab o r R e v ie w , February and March 1942. The articles have been combined into this bulletin for convenience, but the original text has not been changed. Subsequent to the publication of these articles, the attention of the Bureau of Labor Statistics has been called to certain statements in the original articles which may well be further clarified. It is pointed out that the discussion (see p. 6) of wages paid to workers in the industry, which is expressed as a percentage of the total value of the industry’s product, is somewhat misleading, because of duplication in reporting product values to the Census Bureau. The value of certain automobile parts may, for example, be reported once as such, again by another plant in the form of a subassembly, and a third time as part of a finished vehicle. If wages paid are ex pressed as a proportion of the total value added by manufacture,the motor-vehicle industry ranks well above a number of the industries with which it might be logically compared. In connection with the discussion of turn-over rates in the industry, insufficient weight was given to certain recording procedures followed by some companies. Prior to 1940 several large firms recorded a worker as laid off if he missed even a single pay period. This pro cedure was inconsistent with that of many other industries and tended to inflate the turn-over rates. Late in 1939 the General Motors Corporation discontinued collecting turn-over data for this reason; elimination of the data reported by this large company was partly responsible for the decrease in the published turn-over rate. m IV PREFACE The data for this survey were collected by field representatives of the Bureau’s Division of Wage Analysis under the supervision of O. R. Mann. The report was prepared by Harold R. Hosea, with the assistance of George E. Votava, under the general direction of Victor S. Baril. The Bureau is indebted to the officials of the many com panies who cooperated by furnishing the data for this survey, and to the staff members of the Automobile Manufacturer’s Association, the Automotive Parts and Equipment Manufacturers, Inc., and the United Automobile Workers of America for their advice and counsel in connection with the study. A . F. H in r ic h s , Acting Com m issioner, Bureau of Labor Statistics. Bulletin T^o. 706 o f the U nited States Bureau o f Labor Statistics [Reprinted without change from the M onthly L abor R eview , February and March 1942.] WAGE STRUCTURE OF THE MOTOR-VEHICLE INDUSTRY Sum m ary TH E wage structure of the motor-vehicle industry reflects, in large part, certain fundamental characteristics of the industry itself. The concentration of management is apparent from the fact that, in 1940, more than half the automobile plants, in which over 90 percent of all the wage earners were employed, were operated by the 11 large companies producing virtually all of the Nation’s automobiles. Half of the plants are in the five East North Central States which comprise the “ automobile region” ; diming May and June 1940 they employed 85 percent of the wage earners. The industry is characterized by a high degree of mechanization, and the labor force therefore includes relatively large numbers of semiskilled workers. Virtually all of the larger establishments have concluded agreements with trade-unions. The level of hourly earn ings in the industry has been relatively high almost from its begin ning, and there is a marked tendency for individual earnings to con centrate about the general average. The earnings of 471,270 em ployees in the 448 motor-vehicle establishments included in a special survey made by the Bureau of Labor Statistics in May and June 1940 averaged 92.2 cents, and the earnings of half these workers dif fered from the general average by 11 cents or less. Wage levels in the motor-vehicle industry rose about 17 percent between the date of this special survey and November 1941. Because the increases affected the majority of the wage earners in a compara tively uniform fashion, the fundamental characteristics of the wage structure remained essentially the same until the early fall of 1941. This survey covered the country’s largest single industry immediately prior to its complete reorganization for the production of war materials. Earnings in the automobile division of the industry are higher, on the average, than those in parts plants which are smaller and more widely scattered and show less concentration of management. The 1 2 WAGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY hourly earnings of 322,941 workers in the 167 automobile plants included in this survey averaged 96.1 cents, or 12.3 cents above the corresponding figure for 148,329 employees in 281 parts plants. Earnings in automobile plants located in the “ automobile region” were slightly higher in general than those in other areas. Average hourly earnings in this area amounted to 97.7 cents, and Michigan workers earned an average of 98.5 cents per hour. Geographic dif ferences among establishments operated by the larger companies were relatively unimportant. Weekly hours during the period of the study averaged 36.8, and average weekly earnings amounted to $35.42. Basic differences in the characteristics of the automobile and automotive-parts divisions of the motor-vehicle industry are ap parent in the wage structures of these two branches. The earnings of 148,329 workers in 281 parts plants averaged 83.8 cents per hour in May and June 1940. This figure is 12.3 cents below the cor responding rate for automobile plants. Compared with the auto mobile plants, the automotive-parts plants were hardly more than one-fourth as large, were much more specialized, employed a much higher proportion of women, and were less highly concentrated geo graphically and with respect to management. The hourly earnings of half the individual workers in parts plants fell within a range of about 15 cents above and below the general average; the corresponding figure for the earnings of employees in automobile plants was 9 cents. Male workers in parts plants earned an average of 88.6 cents per hour as compared with 61.9 cents for women. Average earnings varied as much as 27 cents between groups of plants manufacturing different types of products, and the largest plants as a group paid more than 30 cents above the average rate for the establishments employing 50 workers or less. Slightly more than half the plants reported union agreements. In general, these were the larger plants in which earnings tended to be higher. Most of the plants were operating on an official 40-hour week and the average employee worked 37.9 hours during the pay roll period selected for study. Earnings in the motor-vehicle industry as a whole rose about 17 percent between the period of this study (May-June 1940) and November 1941. The increase in parts plants was probably slightly less than that for the industry as a whole. An average of $1,562 per worker was paid by motor-vehicle plants, during the year ended June 30, 1940, to 153,682 Michigan workers whose earnings records were selected at random. Approximately 85 percent of this group received their entire earnings, insofar as they were subject to the provisions of the State unemployment compensa W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 3 tion law, as a result of employment in motor-vehicle plants during at least a part of each of the four quarters of the year. Their aver age earnings were $1,667, or about 17 percent below the theoretical rate of full-time annual earnings. Purpose and Scope o f Study Preeminent among American manufacturing industries and pre senting the outstanding example of mass-production methods, the motor-vehicle industry has wielded a tremendous influence on Ameri can wage structure and has been the deserving subject of much re search. The Bureau of Labor Statistics first studied wages and hours of work in this industry in 1919. Subsequent surveys of wages and hours were undertaken every 3 years to 1928, and biennially from 1928 to 1934.1 The availability, after the early thirties, of the Bureau’s figures on average hourly earnings and average weekly hours of work for the industry as a whole reduced the necessity for frequent special surveys, and no other detailed study was under taken until May and June 1940. The results of the 1940 study are described in the present article. The scope of the 1940 survey is not limited to the establishments included in the motor-vehicle industry as defined by the United States Census of Manufactures. The census definition includes “ Estab lishments primarily engaged in the manufacture or assembly of com plete motor vehicles, motor-vehicle chassis, bodies and such parts and accessories as gears, wheels, radiators, bumpers, shock absorbers, frames, horns, windshield wipers, etc.; and trailers for motortrucks and truck tractors. This industry does not include establishments manufacturing tires and tubes, springs, ignition apparatus, batteries, starting and lighting equipment, headlights, sheet-metal stampings, hardware, etc.” The data for this survey were collected from estab lishments classified in the motor-vehicle industry as defined above and, in addition, from plants whose principal products were automo tive stampings, automotive electrical equipment, automobile engines and parts, automobile hardware, coil and leaf springs, and certain widely used types of accessories. Omitted from the survey (as well as from the census definition of the industry) are plants producing forgings and castings (except machined forgings and castings made primarily for use in motor vehicles), tools and garage equipment, tires and tubes, batteries, trailers for attachment to passenger cars, and products made in other industries for use in the motor-vehicle industry such as upholstery materials, bolts, nuts, and wire (in bulk). Data oni i See Monthly Labor Review, March 1936 (pp. 521-633): Wages, Hours, Employment, and Annual Earn ings in the Motor-Vehicle Industry, 1934. (Reprinted in U. S. Bureau of Labor Statistics, Serial No. R. 356.) 4 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U ST R Y the numbers and types of establishments included in the survey appear in a subsequent section (p. 9). The data collected in connection with the 1934 survey revealed sig nificant differences in earnings and employment as between those establishments wrhich manufacture finished motor vehicles and bodies and those which produce parts and equipment for automobiles. The present survey therefore follows the procedure of the earlier study and treats these divisions separately. The term “ motor-vehicle industry” is used to indicate the combination of the two divisions. Plants pro ducing finished vehicles and bodies are grouped under the category “ automobile division” ; the term “ automotive-parts division” includes establishments producing parts and equipment for new vehicles and for replacements. Important changes in the motor-vehicle industry have taken place since the data for the present survey were collected. Substantial wage increases have been made, affecting the greater part of the wage earners in the industry; most of these became effective during the second quarter of 1941. Such changes are discussed in a later section dealing with the trend of employment, pay rolls, hours, and earnings. These recent wage increases are of considerable importance in an analysis of the industry's wage structure, but they are probably much less significant than other effects of the defense program which have involved radical changes in product and major shifts in the industry's occupational structure. Certain of these developments are discussed in the following summary of the characteristics of the industry. It may be noted in passing that the firms and establishments which comprised the motor-vehicle industry at the time of this survey no longer constitute a homogeneous group with respect to products, types of employees, or wage structure. The data presented in this report, therefore, assume added significance, at least historically, since they supply a picture of the wage structure of the country's largest single industry at the end of an era and just prior to a period of transition. Any adequate analysis of the reorganized industry, as a whole, must await the further development of the changes necessitated by the war program. Characteristics o f the Industry The production of motor vehicles and parts has provided employ ment for some 4 to 7 percent of all the wage earners in manufacturing industries for the past two decades. The motor-vehicle industry in 1939 ranked first in number of wage earners employed as well as in value of products, according to the Census of Manufactures. Pay rolls in the industry totaled nearly 7 percent of the amount paid to all wage earners in manufacturing in 1939. In May 1940, the month W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 5 during which the present survey was made, the motor-vehicle industry employed approximately 440,000 wage earners and maintained a weekly pay roll of more than $14,000,000. The production of automobiles on a commercial basis began with the turn of the century, and the principal problem of the industry until about 1920 was that of producing a supply of dependable vehicles sufficient to meet the rapidly increasing demand. By 1905, produc tion had reached an annual rate of 24,000 passenger cars; over 180,000 were built in 1910 and about half a million were in use in that year. Almost a million vehicles were made in 1915, and the 1916 total was well over a million and a half. In the boom year of 1929, the retail cost of the 4,500,000 new passenger cars sold was about $4,000,000,000, and more than $2,500,000,000 was paid for used cars. Although the necessity for selling as well as producing automobiles became ap parent in the early twenties, the marketing problem first assumed really serious proportions about 1929, and production was not main tained on the basis of the 7,000,000 cars originally scheduled for that year. With the coming of the depression, output declined steadily through 1932, and then rose to a total of 4,700,000 units (commercial vehicles and chassis included) with a wholesale value of more than $2,800,000,000 in 1937. The total units produced in 1939 were slightly in excess of 3,500,000. During May 1940, approximately 390,000 units were produced, of which more than four-fifths were passenger cars. Several hundreds of companies have been organized for the manu facture of motor vehicles and parts; 676 different makes of auto mobiles were registered in Massachusetts in 1916, but 12 manufac turers had produced three-quarters of the total. Industrial mortality in the field was enormously high and much of it occurred during the infancy of the manufacturing companies. During the last 10 years the “ big three” (Chrysler, Ford, and General Motors) have made about 90 percent of all the automobiles produced in the United States.2 More than 80 percent of the 400,000 wage earners in the motorvehicle industry in 1939 were employed in plants in the five East North Central States (Ohio, Indiana, Illinois, Michigan, and Wis consin). Michigan alone accounted for nearly two-thirds of the workers, and more than 90,000 wage earners were employed in motorvehicle plants within the city limits of Detroit. New England, where the automobile was first developed, had 43 plants employing only about 2,300 wage earners in 1939. Concentration of the industry in 2 For a detailed history of the industry with special emphasis on its organization and financial charac teristics, see Kennedy, E. D., The Automobile Industry; the Coming of Age of Capitalism’s Favorite Child, New York, Reynal & Hitchcock, 1941. 474365°— 42------2 6 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY the East North Central States is somewhat less apparent from the distribution of plants, although nearly half are in this area. The motor-vehicle industry, particularly the automobile division, has consisted of two general types of establishments. Of the 1,054 plants reported by the census in 1939, almost three-fourths had fewer than 100 employees and were producing either specialized vehicles (ambulances, fire apparatus, etc.) or small parts and accessories. At the other extreme were 170 plants with 500 or more employees each; a substantial proportion of these were the vehicle and parts plants operated by the 11 largest companies in the field. The production of motor-vehicles and parts also has been essentially an urban indus try. Well over half of the vehicle and body plants and about twothirds of the workers included in this survey were found in metro politan areas of 250,000 population and over. The parts plants were, in general, smaller and more widely scattered, yet half the workers in the parts plants studied were located in these densely populated areas. Total payments to wage earners in motor-vehicle plants amounted to about 16 percent of the total value of the industry’s products during 1939. This proportion was substantially below those in com parable industries despite the fact that motor-vehicle production, with its high wage level, ranked first among all manufacturing indus tries in total wages paid during that year. This apparent incon sistency obviously results in large part from the high degree of mech anization within the industry, a condition which was further reflected in the characteristics of the labor force. Semiskilled workers, par ticularly machine operators and assemblers, constituted a very large segment of that labor force. Motor-vehicle wage earners were characteristically males. Females constituted about a fifth of the parts-plant workers, but in the auto mobile division, which was more than twice as large on the basis of employment, only 2 out of every 100 wage earners were women. Organization of the workers within the industry was relatively slow in developing, but union agreements are now in effect in virtu ally all important plants of the automobile division and in most of the larger establishments manufacturing parts. Partly because of the fact that unionization was accompanied by the demand for abolition of piece rates, the majority of the wage earners were paid on a timerate basis; less than a fifth were subject to any type of incentive system at the time this study was made. The most common type of shift differential was an additional payment of 5 percent, and most of the plants paid at the rate of time and a half for all work above 8 hours a day, 40 hours a week, or either, with double time for Sundays and holidays. W AGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 7 RECENT CHANGES IN TH E INDUSTRY The reduction of automobile production for civilian use late in 1941 and the transition by many plants to the manufacture of military equipment have, of course, produced widespread changes in the indus try. These changes will be intensified in 1942 with the virtual termination of pleasure-car output. Experience during recent months has demonstrated that the tran sition to a wartime production schedule will affect the various indi vidual establishments quite differently. The manufacture of army trucks and small tanks has, in some cases at least, involved but mod erate changes in productive processes. The production of aircraft bodies, shell and bomb parts, or machine guns and anti-aircraft guns, on the other hand, has typically required wholesale replacement of machines and equipment and a complete reorganization of production It is clearly impossible accurately to predict the effects of this reorganization upon the labor force of the industry, but certain general changes appear inevitable. In the first place, the essential retooling will involve increases in the relative number of tool and die makers, machinists, and other highly skilled workers; these additions are likely to be reflected in a continuation of the rise in average earn ings within the industry. The workers formerly engaged in massproduction work, such as machine operators, assemblers, etc., will continue to be laid off temporarily pending development of line pro duction for war equipment. The numbers of such workers subject to this dislocation and the duration of unemployment among them depend upon several factors. The production of automobiles for military and emergency civilian use will require relatively minor reorganization, and plants manufacturing such products as engine parts will experience little or no change. It follows that the effects of the shift upon the workers in these establishments will be unim portant. The extent to which labor is dislocated in plants subject to drastic reorganization obviously depends upon the speed and smoothness with which the process is accomplished. One fact is nevertheless patent: to achieve the production levels planned will require not only the total manpower of the industry but substantia] additions to it as well. Certain general changes in the characteristics of the labor force can be outlined despite the fact that the details of the reorganization are not yet apparent. It is clear, for example, that the diversity of products to be produced by the reorganized and expanded industry will increase greatly. This trend will be reflected in a greater spread in the skills of the workers and, consequently, a decrease in the former high concentration of the earnings of individual workers about the 8 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY general average for the industry. The proportions of highly skilled workers, as already pointed out, will increase and the semiskilled groups will become less important until line production of war equip ment is developed. Furthermore, it is possible that the reorganized industry will require, at least temporarily, a larger proportion of relatively unskilled workers, a group which was comparatively small in the motor-vehicle industry prior to the defense program. The recruitment of additional workers will be inevitable eventually, and, since the supply of skilled workers is limited, heavy additions to the semiskilled and unskilled groups and the necessity for training them are likely. At the same time, increases in the combat forces may well result in the employment of older workers (many of whom are skilled) who would not be in the labor market in normal times. Finally, the labor force of the reorganized industry is almost certain to be augmented by the employment of women who formed a rela tively small proportion of the workers prior to the emergency. The net effect of these changes, in the absence of unpredictable developments, will be to increase the spread of earnings in the industry. Earnings levels will probably be affected further by increases in over time work, additional shifts, and increased hours. Coverage o f Survey As defined in the Census of Manufactures, the motor-vehicle and allied industries embraced 1,228 establishments in 1939, and in the period May-June of 1940 employed approximately 465,000 workers.3 These establishments include, in addition to the 1,054 plants classified in the motor-vehicle industry proper (Census industry No. 1810), 90 automotive-stamping plants (industry No. 1472) and 84 plants producing automotive electrical equipment (industry No. 1640). A fourth (308) of these plants, which employed 95 percent of the total wage earners, were included in the present survey (table 1). The relatively small proportion of the total plants studied results from the fact that 598 of the 1,228 establishments employed fewer than 21 wage earners and were purposely excluded from the survey; nearly all the large plants and more than half those with 21 or more wage earners were surveyed. * This figure is derived by adjusting average annual employment for 1939, as reported by the Census, on the basis of the monthly employment indexes released by the Bureau of Labor Statistics. 9 W AGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY T a b l e 1.— Plants and Estimated Wage Earners in Specified Census Industries, and Number and Percent Included in Bureau's Survey, M ay-June 1940 Plants Wage earners Employed in plants included in survey Included in survey Industry classification (census) Total (1939) 1 Total.................................................................. *1,228 Motor-vehicle industry (Census industry No. 1810)............ ......... ................... . ....... ........ *1,054 Automotive stampings (Census industry No. 1472)............................................................... 490 Automotive electrical equipment (Census industry No. 1640)......................................... *84 Per Num cent ber of total 2 3 Total (1940) Number of wage earners included in sur vey1 Percent Number of total 4 5 6 7 308 25 464,737 443,132 95.4 421,543 276 26 436.113 428,297 98.2 407,056 19 21 9,431 3,829 40.6 3,426 13 15 19,193 11,006 57.3 11,061 1 Differs from column 5 since employees engaged on experimental work and wage earners not employed on automotive products were ordinarily excluded from the survey. * Includes 598 plants employing fewer than 21 workers and thus excluded from the survey. * Includes 524 plants employing fewer than 21 workers and thus excluded from the survey. * Includes 32 plants employing fewer than 21 workers and thus excluded from the survey. * Includes 42 plants employing fewer than 21 workers and thus excluded from the survey. In addition to the 308 plants included in these distinct census classifications, the Bureau’s survey included 140 plants classified by the Census in other industries. These establishments, which employed a total of 61,825 wage earners, were producing automobile-body hardware, bearings, pistons and piston rings, transmissions, leaf and coil springs, and other parts excluded from the motor-vehicle industry according to the census definition. No attempt is made to relate the data from these 140 plants to any total for the country, since separate figures for such establishments are not available from census data. It is not possible, for example, on the basis of published census information, to segregate those plants engaged principally in producing automobile-body hardware from the general-hardware industry as a whole. Similarly, data for plants manufacturing motor parts for automobiles are grouped by the Census with those producing similar parts for marine, stationary, and airplane engines. The types of plants included in this group were selected in consulta tion with representatives of trade associations and manufacturers, and, when combined with the 308 establishments classified in the industry by the Census, provide an adequate basis for analysis of the wage structure of the industry as it is here defined. As indicated above, the detailed analysis of the data collected treats the automobile and automotive-parts divisions of the industry separately. Of the 448 plants included in the survey, 167, employing 339,698 wage earners, were engaged in the production of finished 10 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY vehicles (including passenger cars, trucks, ambulances, hearses, and commercial trailers), bodies, and body parts (table 2). The data on these plants (group A) are presented on page 18. T able 2.— Plants and Workers Included in Bureau’s Survey o f M otor-Vehicle Industry, by Type o f Product, M ay-June 1940 Type of product Number of plants Total wage earners em ployed Wage earners included in survey1 1 2 3 Total................................................................................... 448 604,957 471,270 Vehicles and bodies (group A) _______________________ Parts (groups B and C )_____________________________ Parts (group B ) 2_______________________________ Parts (group C) 8_______________________________ 167 281 141 140 339,698 165,259 103,434 61,825 322,941 148,329 98,602 49,727 * Differs from column 2 since experimental workers and wage earners not employed on automotive prod ucts were ordinarily excluded from the survey. 2 Includes only plants classified by the U. S. Census of Manufactures as motor-vehicle, automotive stamping, or automotive-electrical-equipment plants. * Plants classified by the U. S. Census of Manufactures in industries other than motor vehicles, auto motive stamping, and automotive-electrical equipment. To permit comparison with census data, the plants included in the automotive-parts division are divided into two categories. Group B is composed of those parts plants classified by the Census in the three industries for which data are given in table 1. Group C includes the establishments classified by the Census in various other industries. These two groups (B and C) are treated as a single unit in the dis cussion of the automotive-parts division of the industry. Data on earnings and hours were transcribed by field representatives of the Bureau of Labor Statistics from pay-roll and other records in the plants surveyed. With rare exceptions, data were collected only for wage earners working on automotive products; the number of workers included in the survey is thus less than the total number of wage earners employed in the respective plants. Central office and super visory employees (except working supervisors) were also excluded. All data shown regarding clerical or office workers refer to persons employed in production departments. Plants employing 20 wage earners or fewer were ordinarily excluded. Information on occupation, sex, method of wage payment, and number of hours and total earnings for one pay-roll period during May or June 1940 were transcribed for all workers in plants employing 21 to 1,000 wage earners. In larger plants, samples varying from 10 to 50 percent of the workers were taken. For such cases, special sampling procedures were devised for the purpose of insuring adequate representation of all types of workers. The data for all plants 11 W AG E STRUCTURE, M O TO R-VEH ICLE IN D U STRY sampled, as shown in the various tables, have been weighted up to the actual total automotive employment in the respective establishments during the pay-roll period selected for study. Average hourly earn ings have been calculated by dividing gross earnings by total hours actually worked during the pay-roll period. The basic rates are, therefore, raised slightly as the result of relatively small amounts of extra earnings during overtime periods. The period during which the survey was made (May-June 1940) represents neither a high nor a low point for the year. Industry employment indexes for the 2 months were 109.8 and 104.9, respec tively, or almost midway between the low of 82.3 in July and the December high of 130.2. , , , , Trend o f Em ploym ent P a y Rolls Earnings and H ours 1 9 2 3 -4 1 EMPLOYMENT AND PAY ROLLS Employment in the motor-vehicle industry has tended to fluctuate in harmony with employment in the durable-goods industries as a whole (table 3). However, the changes in motor-vehicle employment have been more pronounced, a reflection, among other things, of the extreme sensitivity of the industry to general business conditions as well as the dependence of a major part of it upon the policies and fortunes of a relatively small group of manufacturers.4 The annual index of employment in the industry reached its highest level in 1937 when it stood at 128.3 and indicated an average employ ment of nearly 517,000 wage earners during that year. On a monthly basis, May 1937, with an index of 140.4 and an estimated total of more than 560,000 wage earners, was the peak (table 4). This figure exceeds that for the highest previous month, April 1929, by almost 50,000 workers. Employment in the industry was low throughout 1938 except in November and December, and the index of 75.8 for the year was the lowest since 1933. Increased demand and, later, anticipation of restrictions on automobile production in connection with the defense program resulted in rises in 1939 and 1940; the added effect of defense activities is apparent in a further increase in the level of employment to more than 540,000 in June 1941. Employment in establishments classified in the motor-vehicle industry for the pur poses of this survey continued to rise during the second half of 1941, 4 The sensitivity of the motor-vehicle Industry to general economic conditions is suggested by data col lected in connection with the Study of Consumer Purchases (1934-36), which show that families with annual incomes between $1,200 and $1,500 spent about $23.50 per year for the purchase of automobiles, while families with incomes twice as large spent between three and four times as much for automobiles. 12 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY but the fact that this period marked the end, at least for the duration of the war, of the industry as it existed formerly, makes these data of little significance so far as this study is concerned. T able 3.— Employment and Pay Rolls in M otor-Vehicle and Durable-Goods Manufacture, by Years, 1923-401 Employment Motor-vehicle industry Pay rolls Durable-goods manufacture Motor-vehicle industry Year Index1 Durable-goods manufacture Estimated Estimated Estimated Estimated wage wage weekly weekly Index * pay Index* Index 3 pay earners earners rolls rolls (thousands) (thousands) (thousands) (thousands) 1923..................... 1924..................... 1925..................... 1926..................... 1927..................... 1928..................... 100.6 93.6 105.8 104.8 91.9 108.1 404.6 377.1 425.8 421.6 369.6 434.8 104.1 96.4 99.5 102.5 96.5 97.7 4,008.9 3,712.5 3,831.1 3,947.8 3,714.9 3,760.4 100.6 90.6 108.8 104.8 93.3 113.9 $12,703 11,426 13,736 13,239 11,789 14,379 103.2 95.9 100.9 104.8 98.9 102.3 $103,421 96,057 101,157 105,053 99,049 102,462 1929..................... 1930..................... 1931..................... 1932..................... 1933..................... 1934..................... 111.3 80.3 71.0 60.5 60.6 94.5 447.4 322.8 286.0 243.7 244.1 380.6 106.2 87.6 67.7 52.8 57.5 72.4 4,089.9 3,375.0 2,607.8 2,034.1 2,215.1 2,787.2 111.6 65.7 53.4 38.8 38.3 68.2 14,094 8,299 6,740 4,900 4,835 8,601 111.2 83.8 55.6 33.4 36.8 52.2 111,374 83,969 55,731 33.468 36,867 52,298 1935..................... 1936..................... 1937..................... 1938..................... 1939..................... 1940..................... 110.4 113.9 128.3 75.8 97.9 111.3 444.5 458.6 516.7 305.4 394.2 448.0 79.8 90.7 104.3 78.9 90.2 104.3 3,072.1 3,492.5 4,017.2 4,036.5 3,475.2 4,015.1 89.5 102.8 124.1 69.2 97.5 121.1 11,297 12,976 15,663 8,737 12,299 15,274 64.1 80.7 102.4 67.9 86.2 107.8 64,206 80,840 102,559 68,047 86,334 108,008 1 Data from Bureau of Labor Statistics trend-of-employment and pay-rolls series. * 1923-25-100. Wide seasonal fluctuations have been characteristic of the industry almost since its infancy. Prior to 1935 there was usually a long and severe drop in employment during the autumn, and some attempts were made to devise schemes for rotation of industrial and agricultural employment to take up this slack. In 1935, the date for releasing new models was shifted from winter to fall. As a result, the single and severe seasonal slump was replaced by two more moderate contrac tions, one in August and another about the first of the year. Another advance in the model date in 1939 again shifted the period of low employment and distributed the slack season between July and August. Instability of employment in the motor-vehicle industry prior to 1940 is also apparent from an analysis of labor turn-over. For every year during the period 1931-39, the separation rates in both the auto mobile and the automotive-parts divisions of the industry were almost twice as high as those for all manufacturing industries. In 1934, there were no less than 117.3 separations for each 100 wage earners on the average pay roll during the year. About three-fourths of these separations were lay-offs. Discharge and quit rates in the motorvehicle industry were not greatly in excess of those for manufacturing 13 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY industries as a whole. As might be expected, accession (hiring) rates were also high— \}{ to 2 times those for all manufacturing industries. Increased employment and the development of trade-union organiza tion were reflected in significantly lower turn-over rates during 1940. T able 4.— Employment and Pay-Roll Indexes in M otor-Vehicle Industry, by Months, January 1935 to September 1941 1 Year and month Employ ment index * Pay-roll index * 1935: January ____________ February................. .... M arch___ ___________ April_________________ M a y .............................. June............................ July.............. ................. August........................... September______ ____ October _ .................. November..................... December____________ 109.6 119.1 121.1 121.5 118.0 108.7 102.0 96.4 85.1 106.4 117.1 119.7 82.6 98.8 100.9 104.9 94.1 83.7 76.8 72.2 64.6 87.5 104.5 103.8 1936: January. ........................ February...................... March_______________ April....... ...................... May........................ ...... June......................... ...... July................................ August.... ...................... September .................. October...................... .• November____________ December____________ 117.8 113.5 112.2 115.3 116.9 115.5 110.7 97.6 89.6 109.8 128.5 139.2 96.2 84.3 95.0 110.1 112.2 108.3 100.4 83.6 77.4 102.1 127.2 137.2 1937: January......... ................ February.................. . March_______ ________ April.............................. May_____ ______ _____ June.......... ................ . July................. .............. A u g u st.............. ........ September___________ October.................. ........ November____________ December____________ 125.3 127.3 131.8 136.5 140.4 138.2 131.0 119.1 112.2 134.0 133.5 110.5 108.8 . 122.7 133 6 137.3 145.5 136.6 124.9 116.5 106.0 139.3 126.9 91.5 1938: January. ........................ February............. ........ March___________ ____ April............................. M ay__________ _______ June.............................. 84.7 82.1 79.3 72.9 68.6 61.5 64.4 62.7 62.3 63.3 56.8 54.4 Year and month Employ Pay-roll ment index * index* 1938: July................................ August_______________ September...................... October______________ November____________ December______ ____ 53.1 48.0 64.9 86.3 101.9 106.8 47.4 47.0 66.3 91.3 107.6 107.4 1939: January..................... . February........................ March............................ April.............................. M a y .................... ......... June............................... July................................ August_______________ September___________ October ____________ November __________ December____________ 106.1 104.4 103.8 101.8 93.3 91.6 76.4 70.4 98.7 107.8 102.3 118.1 101.3 97.3 97.0 99.5 88.0 88.6 72.9 75.0 102.9 113.3 106.0 127.9 1940: January........................ February..___________ March_____ ____ _____ A p ril............................ May_________________ June................................ J u ly .............................. August_______________ September___________ October _____________ November____________ December____________ 115.8 113.1 114.4 112.0 109.8 104.9 82.3 85.5 112.2 125.1 129.8 130.2 119.9 119.1 122.9 121.2 111.1 112.0 80.5 96.1 125.1 149.2 150.5 145.0 1941: January______________ February_____________ March_______________ April............................... May_________________ June............................... July................................ August_______________ September___ ________ October November___ _ ____ 128.5 130.1 131.5 132.4 134.1 134.8 126.9 109.3 123.4 128.9 129.7 147.7 159.6 163.1 147.3 170.6 188.3 158.0 137.3 158.9 176.6 175.8 * Data from Bureau of Labor Statistics trend-of-employment and pay-roll series. *1923-25=100. Aggregate pay rolls in the motor-vehicle industry have fluctuated in close harmony with changes in employment. The annual index of pay rolls reached the lowest point since 1923 in the year 1933 when the index reached a level of 38.3 (1923-25=100.0) and the estimated average weekly pay roll fell to $4,800,000. In the relatively good years of 1928, 1929, 1936, and 1937, both employment and pay rolls were greater than in the base period, 1923-25. In 1937, however, employment had advanced farther beyond the 1923-25 level than had pay rolls. Since August 1939 the reverse has been the case; pay rolls ------ 3 474365°— 42 14 WAGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY have been at a higher level, as compared with the 1923-25 period, than has employment except during 1 month (July 1940). A high level of pay rolls occurred in June 1941 when the index rose to 188.3 and weekly pay rolls amounted to $23,800,000. The extremely rapid growth of motor-vehicle pay rolls can be seen by comparison with the year 1904 when an average of about 12,000 wage earners were paid a total of less than $140,000 per week. AVE R AG E HOURLY EARNINGS The level of average hourly earnings in the motor-vehicle industry has been relatively high almost from its beginning. Average hourly earnings in this industry have been roughly a fifth to a third above those in the durable-goods industries as a whole during the entire period for which comparable figures are available; in 1938 the differ ence was a third (table 5). The substantial increase in earnings during 1937 in part reflects the result of the trend toward unionization. Between the period of this survey (May-June 1940) and November 1941, average hourly earnings in the industry rose 16.5 cents, or 17.4 percent. Changes in wage rates made during the last half of 1940 were not sufficiently important to cause any appreciable change in the average for the industry; the figure of 95.4 cents for December 1940 is, in fact, identical with that for the preceding June. A rise of 1.5 cents between December 1940 and January 1941 and another of 0.5 cent in February reflect the first important change in a series which resulted from the terms of new union agreements effected during the first half of 1941. Data submitted to the Bureau by manufacturers indicate that somewhat more than 80,000 wage earners, or virtually all the employees of the companies reporting wage increases, were affected. The information available shows a flat increase of 2 cents per hour granted by the Chrysler Corporation,6 a raise of 5 percent in the plants of two moderately large companies, and adjustments \arying from 2 to 10 percent in several smaller firms. Except in a few of the smallest establishments, all wage earners in these plants were affected in a relatively uniform manner. The later wage adjustments made during March and April 1941 were restricted principally to the smaller concerns. The increases varied from 4 to 18 percent, and, according to available reports, less than 10,000 workers were involved. With minor exceptions, the increases applied to all wage earners in the plants reporting changes. The relative unimportance of changes in these 2 months is indicated by the over-all figures on average hourly earnings which show an increase of less than 1 cent between February and April.* * Effective during the latter part of December. W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 15 T able 5.— Average Hourly Earnings, W eekly Hours9 and Weekly Earnings in M otor Vehicle and Durable-Goods Manufacture, 1922-41 Average hourly earn ings (in cents) Year and month Motorvehicle industry Durablegoods manufac ture Average hours worked per week Motorvehicle industry Durablegoods manufac ture Average weekly earn ings Motorvehicle industry Durablegoods manufac ture 1922........................................... 1925........................................... 1928........................................... 1930........................................... 1932........................................... 1933........................................... 1934.................. ..................— . 1935........................................... 1936........................................... 1937........................................... •65.7 172.3 t75.0 172.4 68.0 59.3 70.0 73.9 77.4 89.1 (2) (2) (2) (*) 50.8 48.5 56.7 58.7 59.7 68.6 (2) (2) 1 46.9 134.5 31.3 35.2 33.3 37.1 38.5 35.9 0) (2) (2) (2) 32.5 34.7 33.7 37.1 40.8 39.8 (2) (2) i $35.14 125.01 21.27 20.96 23.31 27.41 29.75 31.94 (2) (2) (2) (2) $17.66 17.80 19.81 22.72 25.24 28.09 1938........................................... January............................. February........................... March................................ April...................... .......... May.................. ............... June................................... July................................... August.............................. September......................... October............................ November......................... December.......................... 92.5 91.5 91.6 91.9 92.0 92.0 92.5 93.0 93.6 93.3 92.8 93.2 92.4 69.8 70.5 70.2 70.2 70.1 69.9 69.6 68.8 68.5 69.0 69.6 70.6 70.9 32.9 27.6 27.7 28.4 31.4 30.0 31.9 31.8 34.6 36.3 37.7 37.5 36.0 34.8 32.2 33.0 33.6 33.5 33.8 33.9 33.4 35.8 36.4 37.5 36.7 37.1 30.45 25.27 25.34 26.10 28.83 27.65 29.49 29.56 32.33 33.81 34.98 34.89 33.22 24.77 22.90 23.42 23.69 23.80 23.93 23.86 23.32 24.84 25.65 26.86 27.02 27.27 1939.......................................... January............................. February........................... March................................ April.................................. May................................... June................................... July.............. .................... August............................... September......................... October.............................. November......................... December.......................... 92.9 92.1 92.4 92.6 92.8 93.1 93.3 92.8 93.5 93.4 92.2 92.2 94.0 71.0 71.0 70.9 71.1 71.0 70.7 70.8 70.2 69.9 70.9 71.3 71.5 72.7 35.5 34.3 33.3 33.3 34.9 33.5 34.3 34.0 37.7 36.9 37.7 37.2 38.1 37.8 36.1 36.6 36.8 36.6 36.9 37.4 36.2 38.4 38.2 40.1 39.6 39.6 32.90 31.55 30.80 30.87 32.33 31.18 31.94 31.50 35,15 34.41 34.75 34.25 35.81 27.83 26.53 26.78 27.02 26.92 26.82 27.26 26.31 27.92 28.15 29.71 29.41 30.04 1940........................................... January............................. February........................... March................................ April................................. May................................... June................................... July................................... August.............................. September......................... October............................. November......................... December.......................... 94.9 93.4 93.8 94.4 94.5 94.7 95.4 94.9 95.6 95.0 95.1 95.7 95.4 73.4 72.7 72.6 72.8 72.9 73.0 73.2 72.7 73.1 73.7 73.9 74.4 74.9 37.9 36.7 37.1 37.7 37.9 35.4 37.0 34.0 38.8 38.6 41.3 39.9 38.5 39.2 38.1 37.9 38.3 38.2 38.2 38.7 37.9 39.7 40.2 41.0 40.2 41.2 35.88 34.28 34.80 35.53 35.78 33.47 35.28 32.26 37.13 36.67 39.24 38.11 36.54 29.88 28.96 28.60 28.90 28.92 28.80 29.48 28.52 29.98 30.57 31.42 31.11 31.96 1941: January............................. February......... ................. March................................ April.................................. May................................... June................................... July................................... August.............................. September......................... October.............................. November......................... 96.9 97.4 98.2 98.3 101.4 106.3 106.6 105.7 108.5 1109.1 111.6 75.8 76.2 76.8 78.5 80.6 82.2 82.6 83.0 84.3 85.3 86.5 38.9 41.1 41.4 37.0 41.0 43.0 38.3 39.0 38.7 40.7 39.3 40.6 41.6 42.0 41.5 42.5 43.1 41.5 42.6 42.3 42.9 41.8 37.66 40.06 40.61 36.36 41.56 45.70 40.79 41.14 42.20 44.32 43.84 31.93 32.90 33.49 33.54 35.57 36.90 35.84 36.52 36.79 37.92 37.56 ' 1 Data from special studies of the industry and based on a specific pay-roll period rather than on regular monthly reports. * Data not available. 16 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY Major changes in wage rates resulted from the agreements con cluded between the union and the principal manufacturers during May and June. In general, the increases amounted to about 10 percent and more than 300,000 workers were affected. The great majority of the adjustments were in the form of blanket increases. Typical of the adjustments were the 10-cent raise granted to the 160,000 employees of 61 General Motors plants, 8 cents to the em ployees of Hudson, Packard, Briggs, and Chrysler,6 and similar in creases in a large number of smaller companies. The Ford M otor Co. made adjustments varying from 5 to 15 cents. The Ford adjust ments involved increases for about 53,000 wage earners, and were effected over a period of several months. These industry-wide changes resulted in sharp rises in average hourly earnings which reached $1,014 in M ay and $1,063 in June. It should be noted, however, that these general averages were also affected by extra earnings at overtime rates. Wage adjustments made in July were limited to relatively few of the smaller companies, and the increase in the industry’s average hourly rate amounted to only 0.3 cent. On the basis of the above discussion it is apparent that the descrip tion of the wage structure outlined in this report is generally appli cable to the industry through July 1941; that is, to the end of the 1941 model year. While it is true that earnings have risen sharply, the increase has affected some 80 to 90 percent of the industry’s wage earners in a comparatively uniform fashion. The increases on an occupational basis made to the remaining 10 to 20 percent introduce only minor modifications in the wage structure; these were principally of a sort which would tend to produce slightly greater uniformity of earnings among certain semiskilled and skilled groups. Employment in the industry declined sharply in August in con formity with the usual seasonal drop at the end of the model year. The curtailment of normal output and the diversion of plant facilities to defense production renders interpretation of data for September and subsequent months difficult and inconclusive. It may be noted, however, that the “ normal” activities of the industry, for all practical purposes, came to an end at the close of the 1941 model year. It is probable that the upward trend in average hourly earnings, which reached $1,085 in September, $1,091 in October, and $1,116 in Novem ber, is largely a result of defense activities. Further, it is certain that the employment of the relatively large numbers of skilled workers essential to reorganization and retooling of the industry for the pro duction of war material, together with increases in overtime and night shifts, will continue to exert an upward pressure on the hourly rate of earnings for some months to come.• • In the case of the Chrysler Corporation, this was in addition to the earlier 2-cent increase noted above. 17 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY TREND OF EARNINGS BY OCCUPATION Data on the earnings of individual occupational groups collected in connection with the Bureau’s several special surveys of the industry indicate considerable uniformity in the trend for various occupations. The largest increases between earnings in 1922 and in 1940 are shown for laborers, inspectors, and tool and die makers (table 6). There appears to be little or no relationship between degree of skill and the extent to which earnings rates have risen. It should be pointed out, however, that'these comparisons are subject to certain limitations. Changes in technology and in the nature of the duties performed by many occupational groups between 1922 and 1940 have greatly re duced the number of job categories which can be logically compared. Although it is believed that the occupational groups selected have remained reasonably comparable throughout the period, small differ ences should not, in general, be interpreted as significant. T a b l e 6. — Average Hourly Earnings o f M ales in 26 Selected Occupations in Automobile Division, M otor•Vehicle Industry, in Specified Years 19221 19251 19281 19301 19321 Total industry8................................................ $0,662 Occupation Assemblers, axle.................._........................... Assemblers, chassis and final.......................... Assemblers, motor and transmission............... Crane operators................................................ Cutters, cloth and leather................................ Die setters........................................ ............... Dingmen............................. ............................ Drop hammermen, forge shop......................... Forge shop workers, except hammermen........ Gear cutters........... ............ ............ ................ Hardeners and annealers__________________ Inspectors, testers, balancers, and straight eners....................... ................. .................... Laborers and stock handlers............................ Lacquer and enamel rubbers_______________ Machine operators, group l 78 ........................... Machine operators, group 2 8........................... Metal finishers.............................................. Millwrights—................................................... Punch and press operators............................. . Sanders and rough-stuff rubbers..................... Sewers and trim bench hands......................... Sheet-metal machine operators and assem blers............................................................... Sprayers............................................................ Tool and die makers........................ ............... Welders and brazers, hand.............................. Welders, machine............................................. 1934 1940 $0,729 $0,756 $0,733 $0,638 $0,730 $0,967 .676 .647 .661 (8) (1 *4*) (8) (8) .810 .698 .678 .676 .729 .694 .747 .726 .803 .797 1.037 .957 .753 .746 .725 .755 .758 .762 .707 .831 .849 1.128 .973 .735 .760 .749 .717 .681 .725 .673 .798 .819 .975 1.005 .782 .740 .720 .602 .570 .632 .658 .709 .741 .813 .800 .679 .623 .618 .694 .720 .745 .685 .857 .774 1.063 .871 .721 .778 .709 .971 .943 .960 .956 .982 1.055 1.248 1.165 1.006 .974 .975 •.611 .496 .669 .700 (8) (8) .715 (8) 4.650 .687 .570 .871 .727 .764 .851 (8) .718 .843 .738 .725 .589 .841 .751 .792 .893 (8) .746 .807 .793 .748 .589 .746 .713 .774 .738 .753 .717 .702 .734 .660 .575 .603 .634 .667 .633 .688 .646 .591 .495 .724 .613 .841 .714 .754 .867 .719 .693 .723 .742 .977 .836 1.059 .954 .987 1.048 .983 .955 1.001 1.002 8. 656 .723 .769 (8) (8) .783 .850 .875 .810 .792 .807 .824 .919 .852 .789 .711 .733 .887 .757 .735 .574 .615 .785 .659 .622 .752 .783 .899 .787 .743 .949 1.011 1.194 1.028 .979 1 Includes some workers in the automotive-parts division. * Excludes office workers. 8 Averages not available. * Cutters, cloth and leather, included in sewers and trim bench hands. 8 Dingmen included with sheet-metal machine operators and assemblers. 8 Straighteners were not included when computing the average for 1922. * Includes automatic lathe and screw, drill-press, and milling-machine operators. 8 Includes boring-machine, grinding-machine, nonautomatic-lathe, and planer and shaper operators. AVERAGE W EEKLY HOURS Average weekly hours in the motor-vehicle industry have tended to be slightly below those for the durable-goods industries as a group. In general, the differences in the two series are slight throughout the 18 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY period for which comparable data are available (table 5). Hours in the industry reached the high point of 43.0 in June 1941 but dropped to 38.3 in the following month. As a rule seasonal changes do not seem to have had any profound effect on the average hours of work Instead, the fluctuations have been in volume of employment. Aver age hours during May and June 1940, the period of the present survey, were 35.4 and 37.0,7 respectively. AVERAGE W EEKLY EARNINGS Average weekly earnings in the motor-vehicle industry were above those for the durable-goods industries as a whole for each year during the period 1932-40 (table 5). The differences ranged from 14 to 23 percent and were somewhat smaller than the differences in average hourly earnings because of the fact that the motor-vehicle industry has in general worked fewer hours per week than have establishments in the durable-goods industries. There are no outstanding deviations from the general trend of the relationship between average weekly earnings in the motor-vehicle industry and in the durable-goods indus tries except in April 1941 when the two averages were only $2.82 apart. Earnings in the motor-vehicle industry reached their highest point ($45.70) in June 1941 as the result of the general wage increases already referred to and also, presumably, because of considerable amounts of overtime payments during that month.8 Earnings and H ours in the Autom obile D ivision AVERAGE HOURLY EARNINGS Hourly earnings of the 322,941 workers in the 167 automobile plants studied averaged 96.1 cents in May and June 1940 (table 7). The earnings of half the workers were within 9 cents per hour of the general average. Fewer than 5 percent of the workers earned below 72.5 cents an hour. This high concentration of earnings about the average is characteristic of a high-wage industry in which the majority of the workers are employed in the plants operated by a small number of large firms and in which the great majority of the employees are paid on a straight-time rather than a piece-rate basis. Regional differences.—The five East North Central States, as noted earlier, contain the great majority of the workers in the automobile division of the industry; more than half the 167 plants and almost 85 percent of the workers studied were in this region. The hourly eam-*2 7 The special-survey data show a slightly higher figure (37.2) because (1) the definition of the industry as used in the survey differs slightly from that used in the trend-of-employment and pay-roll series, and (2) proportionately more parts plants (in which average hours are higher) than vehicle plants are included in the survey sample as compared with the group of plants reporting monthly. » The figure of 43.0 hours per week for the industry as a whole involves an average of somewhat more than 3 hours of overtime per week for each worker since the legal maximum of 40 hours was in effect. 19 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY ings average for this region was about 1.5 cents above that for the country as a whole; Michigan, with more than a fourth of the auto mobile plants and almost three-fourths of the workers studied, showed average hourly earnings of 98.5 cents. As might be expected, the tendency for the earnings of individual workers to concentrate about the general average is even more pronounced in Michigan than in the country as a whole. T able 7.— Percentage Distribution o f Workers in Automobile Division, by Average Hourly Earnings and Geographic Division, M ay-June 1940 Hourly earnings (in cents) Under 37.5 ............... ......... 37.5 and under 42.5............... 42.5 and under 47.5............... 47.5 and under 52.5............... 52.5 and under 57.5............... 57.5 and under 62.5............... 62.5 and under 67.5............... 67.5 and under 72.5............... 72.5 and under 77.5............... 77.5 and under 82.5............... 82.5 and under 87.5..... ......... 87.5 and under 92.5............... 92.5 and under 97.5............... 97.5 and under 102.5_............ 102.5 and under 107.5............ 107.5 and under 112.5............ 112.5 and under 117.5............ 117.5 and under 122.5........... 122.5 and under 127.5........... 127.5 and under 132.5........... All divi sions 162.5 and under 172.5........... 172.5 and over____________ 0.2 .1 .1 .3 .5 .6 1.0 1.4 4.9 7.4 10.4 14.8 12.3 16.7 10.8 6.9 5.0 2.5 1.2 .8 .7 .5 .5 .2 .1 .1 Total........................... 100 0 132.6 and 137.6 and 142.6 and 162 6 and under u nd er under u nd er 137.6 142.6 162.6 162.6 _ _ Number of workers.............. 322.941 Number of plants................. 167 Average hourly earnings___ $0,961 New Eng land and Middle Total Atlan tic 0.3 .5 .4 1.5 2.2 3.0 2.7 32 7.7 8.8 14.9 17.7 14.7 8.9 3.8 4.8 2.4 1.4 .5 .2 .2 .1 .1 East North Central Michi gan Ohio West Other Illinois North divi and Central sions 1 Indiana Wis consin 0.1 .2 .2 1.0 1.1 1.5 1.0 1.5 8.4 5.7 10.6 10.7 16.6 23.8 9.0 5.1 1.8 .7 .4 .1 .1 .] .2 .l (2) (2) 0.1 .2 .2 .5 1.0 .6 1.6 .9 7.9 9.2 14.9 12.8 8.5 18.5 9.6 6.4 5.6 1.2 .2 .1 3.4 1.3 1.1 .8 .9 .5 .6 1.0 7.4 8.9 15.3 14.0 16.5 13.0 9.0 3.9 1.4 .6 .2 .1 .1 (2) (2) (2) (2) (J) (2) 0.1 .2 .2 .3 .8 1.2 4.4 7.1 9.5 14.6 12.0 17.7 11.7 7.3 5.5 2.7 1.4 .9 .8 .6 .6 .2 .1 .1 (2) (2) 0.1 .1 .1 .5 .9 4.1 7.2 9.7 15.0 11.4 17.6 11.7 7.4 5.9 3.0 1.5 1.0 .9 .7 .7 .3 .1 .1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 29,712 271,151 229,845 89 45 30 $0,877 $0,977 $0,985 15,185 19 $0,920 15,399 10 $0.950 10,722 15 $0,923 8,921 12 $0,908 13,157 36 $0,876 (2) 0.2 .9 1.3 1.9 3.4 3.3 4.1 5.1 8.9 6.8 10.6 12.4 15.7 10.5 5.7 3.5 2.2 1.8 1.1 .2 .1 .3 <2) (2) 0.1 .2 .3 .4 .3 1.9 2.0 5.4 4.8 8.3 14.7 16.3 17 1 14.5 8.0 3.3 .8 .4 .3 .1 .1 .1 .l .2 .3 1 Plants distributed as follows: Alabama, 2; California, 12; Colorado, 1; Georgia, 4; Kentucky, 3; Louisiana, 1; Mississippi, 1; North Carolina, 2; Oregon, 1; Tennessee, 1; Texas, 3; Utah, 1; Virginia, 2; Washington, 2. 2 Less than a tenth of 1 percent. The number of plants and workers in areas other than the East North Central States are, in general, too small to justify more than broad generalizations concerning earnings. It should also be noted that the automobile plants located outside of the principal area do not comprise a homogeneous group. They are, rather, made up of two types of establishments— the decentralized plants of large companies and a group of firms, most of which are relatively small, producing commercial bodies, trailers, and such equipment as busses, ambu lances, hearses, and fire engines. Substantial amounts of this work are done on a special-order or custom basis. The wage structure in 20 WAGE STRU CTU RE, M O TO R-VEH ICLE IND USTRY the outlying plants operated by the larger companies tends generally to conform to that of similar plants located in the so-called automobile States, and the level is, with a few exceptions, substantially higher than that in the independent plants. This situation is reflected in the distributions of workers by average hourly earnings in all areas except the East North Central and is apparent in the minor peaks at or near the lower ends of the distributions (table 7). It also explains the close agreement between the average for the country as a whole and those for the several regions, none of which varied from the general average by more than 8.5 cents. Plant averages.— The distribution of individual plants according to the average hourly earnings of workers also reflects the fact that data from a relatively small number of firms determine the statistical characteristics of the wage structure of this industry. Almost half the plants, which employed more than 85 percent of all the workers studied, showed averages above 90 cents per hour. Almost twofifths of the workers were employed in the 29 plants in which hourly earnings averaged $1.00 or more (table 8). Only 24 plants reported hourly earnings of less than 60 cents. These establishments were generally small, employing only about 75 wrorkers on the average, and the entire group of wage earners in these plants amounted to scarcely more than a half of 1 percent of the workers surveyed in the automobile division of the industry. T a b l e 8.— Distribution o f Plants and Workers in Automobile Division, by Plant Average Hourly Earnings, and Size of Operating Companies, M ay-June 1940 Companies employingAll companies 5,000 or more Plant average hourly earnings (in cents) Number Number of of plants workers Number of plants Number of workers Number of plants 91 301,481 76 21,460 9,250 20,306 92,959 56,978 121,988 3 3 7 5 6 9 6 9 5 8 7 4 3 1 274 157 60i 210 627 1,160 1,162 1,297 2,444 2,510 4,086 2,998 3,927 0) All plants..................................................... 167 322,941 Under 40...................................................... 40 and under 45........................................... 45 and under 50.......................... ............... 50 and under 55.................... .................. 55 and under 60________________________ 60 and under 65........................................... 65 and under 70................. ......................... 70 and under 75........................................... 75 and under 80........................................... 80 and under 85........................................... 85 and under 90............... ........................... 90 and under 95........................................... 95 and under 100.......................................... 100 and over................................................. 3 3 7 5 6 9 6 9 5 12 23 23 27 29 274 157 608 210 627 1,160 1,162 1,297 2,444 11.760 24,392 95,957 i 60,905 121,988 Average hourly earnings............................ $0.961 i Workers of 1 plant included in interval 95 cents to $1. Less than 5,000 4 16 19 24 28 $0,972 Number of workers $0.825 W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 21 Hourly earnings and size of operating company.—Ninety-one of the 167 automobile and body plants surveyed were operated by 11 com panies. These 91 plants employed about 93 percent of all the workers in this division of the industry. Average hourly earnings for the plants of the large companies, taken as a group, were 97.2 cents, or 1.1 cents above the figure for the entire automobile division. None of these plants showed average earnings below 80 cents per hour. More than 40 percent of all the workers employed by these companies were in the 28 plants in which hourly earnings averaged $1 or above (table 8). By contrast, the 76 smaller companies, employing the remaining 7 percent of the workers, showed average hourly earnings of 82.5 cents— 14.7 cents below the figure for the large companies and 13.6 cents less than the average for all automobile plants as a whole. Plant averages for more than two-thirds of these establishments were below 80 cents per hour; these, as might be expected, were the smaller plants em ploying on the average only about 150 workers each. Four of the small companies showed average hourly earnings of 95 cents or more and, of these, only one averaged above $1.00. The concentration of management in this division of the industry and its effect on wage policy tend to offset the influence of such factors as size of community. The wage rates paid by the large companies vary but slightly from area to area, and a tabulation of earnings by size of community has little or no significance because its character istics are largely a reflection of the types of communities in which the plants of the few large companies happen to be situated. Hourly earnings and size of plant.—The close correspondence be tween size of plant and level of earnings among automobile companies is, of course, to be expected because of the concentration of manage ment within the industry. Of the 167 establishments, about threefifths (101) reported 500 or more employees each. These plants, however, accounted for almost 98 percent of all the workers in the automobile division of the industry (table 9). Nearly three-fourths of the workers were employed in plants which averaged 2,500 or more employees each. At the other end of the scale were 36 plants with average employment of 100 or less, and this entire group contained little more than a half of 1 percent of the workers. None of the units with 2,500 or more workers showed average hourly earnings below 80 cents, and 14 plants, with a total of more than 105,000 workers, had average hourly earnings in excess of $1.00. Again, by contrast, only 5 of the plants with 100 workers or less showed average hourly earn ings as high as 80 cents; the combined employment of the 5 small plants was only 223. 474365°— 42- -4 22 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY T able 9.— Distribution o f Plants in Automobile Division, by Plant Average Hourly Earnings and Size o f Plant, M ay-June 1940 Total Plant average hourly earnings (in cents) Size of plant in terms of number of workers Em ployees Plants Under 51 274 157 608 210 627 1,160 1,162 1,297 2,444 11,760 24,392 95,957 59,988 100 and under 105 112.869 105 and over______________ 10.036 3 3 7 5 6 9 6 9 5 12 23 23 27 23 6 1 1 3 4 4 3 2 2 1 2 Number of plants_________ Number of employees.......... 322,941 167 24 801 35 and under 40............ ........ ■40 and under 45_________ __ 45 and under 50.................... 50 and under 55_________ __ 55 and under 60.................... 60 and under 65.................... 65 and under 70______ ____ 70 and under 75 _ . . 75 and under 8 0 ................. 80 and under 85.................... 85 and under 90....... ........... . 90 and under 95___________ 95 and under 100__________ 1 51-100 101-250 251-500 2 2 2 1 2 1 2 4 3 5 1 1 2 4 2 12 942 22 3,687 1 1 1 5011,000 1,0012,500 2,501 and over 1 2 1 1 1 1 3 8 9 8 5 2 1 1 7 8 10 4 3 2 2 4 8 13 1 8 2,897 37 27,304 34 52,768 30 234,542 Occupational differentials among male workers.— More than threefourths of the male workers in the automobile and body plants studied were employed in production departments; average hourly earnings for this group were 95.5 cents or 1.2 cents below the average for all males in this division of the industry (table 10). The average for maintenance workers was only slightly (0.9 cent) below that for pro duction employees, while foundry occupations as a group showed earn ings 4.2 cents under the general average. Tool- and die-room workers, with average earnings of $1,168 per hour were, of course, the highestpaid group. The highest average per hour for any single occupational group was $1,416 for working foremen in tool and die rooms; except for wrages of helpers and apprentices, the lowest average per horn* for males was 77.2 cents for janitors. Within production departments, the hourly earnings of males ranged from 81.5 cents for laborers to $1,248 for dingmen. Despite this rather wide spread of 43.3 cents, the earnings of male production workers offer striking evidence of the concentration of individual earnings. The averages for 23 occupa tions, wilich included nearly half the total of 241,332 male production workers, were within 3 cents of the general average of 95.5 cents for the entire group. More than a fourth of all the male workers were classified in the 28 occupational groups which showed average earnings of $1.00 or more per hour. In addition to working foremen in tool and die and in maintenance departments, seven occupational groups, with nearly 20,000 workers, had earnings in excess of $1.10 per hour. Included in this total were dingmen ($1,248), drop-hammer operators ($1,165), heaters in forge shops ($1,158), tool, die and lay-out inspectors 23 WAGE STRUCTURE, M O TO R-VEH ICLE INDUSTRY ($1,208), tool and die makers ($1,194), other tool-room workers ($1,111), and pattern makers ($1,215). The 5,091 janitors with an hourly average of 77.2 cents constituted the only male group (except for apprentices) with earnings below the 80-cent level, and only six additional occupations showed hourly averages less than 85 cents: maintenance laborers (81.6 cents), miscellaneous service workers (83.9 cents), production-department laborers (81.5 cents), truckers and material handlers (84.7 cents), male sewing-machine operators (83.8 cents), and watchmen (80.7 cents). These seven groups with earn ings of less than 85 cents an hour included about 37,000 male workers or 11.5 percent of the total. It may be noted, however, that nearly one-half of these 37,000 were truckers and material handlers whose average earnings were within 3 mills of 85 cents. T able 10.— Average Hourly Earnings of Workers in Automobile Division, by Sear, Occupation, and Geographic Division, M ay-June 1940 Total Occupation Aver age hourly earn ings East North Central Other divisions Aver age hourly earn ings Num ber Aver age hourly earn ings Males All departments............................................................. 315,013 ?0.967 263,651 $0,983 51,362 $0,882 241,332 1,623 19,399 7,130 2,810 958 22,725 663 1,130 1,245 4,549 1,699 582 1,242 635 1,220 1,320 3,163 459 714 1,690 505 1,930 698 10,346 2,653 8,840 5,791 10,322 28,976 1,369 8,254 1,853 6,099 5,651 1,146 3,262 1,342 14,553 2,634 4,011 4,489 .955 197,274 .971 1,509 .943 12,341 .960 6,838 .957 2,501 .891 923 .941 16,040 1.011 649 .913 1,021 .913 964 .892 3,722 .956 1,568 .982 561 1.055 1,184 1.248 536 1.021 912 1.165 1,238 1.095 2,386 .960 410 .942 670 .975 1,639 1.158 493 .891 1,640 1.208 679 .964 8,929 1.056 2,515 .815 6,795 4,611 1.025 1.048 7,728 .963 27,384 .981 1,291 .941 7,843 .974 1,793 .994 5,852 .973 5,348 .953 1,079 .953 3,061 .905 1,117 .912 12,275 .859 1,748 2,944 .917 1.011 3,009 .970 .979 .961 .964 .974 .887 .967 1.013 .927 .913 .911 .973 .986 1.069 1.265 1.051 1.192 1.122 .995 .951 .977 1.173 .956 1.210 .968 1.054 .845 1.034 1.081 .969 .985 .947 .977 .997 .977 .958 .960 .927 .921 .875 .942 1.040 44,058 114 7,058 292 309 35 6,685 14 109 281 827 131 21 58 99 308 82 777 49 44 51 12 290 19 1,417 138 2,045 1,180 2,594 1,592 78 411 60 247 303 67 201 225 2,278 886 1,067 1,480 .885 .874 .911 .868 .825 0) .880 0) .788 .913 .811 .766 0) .806 1.159 .931 .826 1.017 0) 0) .911 0) .528 (*) .938 1.104 .717 .992 .952 .867 .914 .831 .895 .930 .903 .860 .856 .798 .865 .830 .852 .952 Num ber Processing occupations................................................... Assemblers, axle....... ............................................. Assemblers, chassis and final.................................. Assemblers, motor............................................. . Assemblers, sheet-metal, subassembly. ................. Assemblers, small parts...................................... —. Assemblers and trimmers, b o d y a........................... Balancers____ ____ ______ ______________ ______ Bench hands, machined parts........................... . Car loaders............................................................... Clerical workers, factory..... .................................. Crane and hoist operators....................................... Cutters, cloth and leather....................................... Die setters................................................................ Dingmen.................................................................. Door hangers......... ............... .................................. Drop-hammer operators...... ................................... Foremen and lay-out m en ....................- ................ Forge-shop workers, not elsewhere classified.......... Hardener and annealer helpers............................... Hardeners and annealers.......................... .............. Heaters, forge s h o p ................................................ Helpers, processing occupations, n. e. c.................. Inspectors, tool, die, and lay-out............................ Inspectors, n. e. c..................................................... Job setters, machine................................................ Laborers, n. e. c ._ ................................................... Leaders and relief workers....................................... Metal finisheis— ............... ............ ....................... Operators, machining processes.............................. Boring machines.................. ............................ Drill presses....................................................... Gear cutters....................................................... Grinding machines........................................... Lathes, automatic and semiautomatic............. Lathes, hand..................................................... Milling machines............................................... Miscellaneous machines, n. e. c......... .............. Other processing occupations, n. e. c...................... Packers and craters.................................................. Paint-shop workers, n. e. c...................................... Painters, spray......................................................... See footnote? at end of table. Num ber 24 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY T a b l e 10.— Average H ourly Earnings o f Workers in Automobile D ivision, by Sex> Occupation, and Geographic Division, M ay-June 1940— Continued East North Central Total Occupation Other divisions Num ber Aver age hourly earn ings Num ber Aver age hourly earn ings Num ber Processing occupations—-Continued. Platers..________ __________ _________ ________ Polishers and buffers, plating.......... .................... . Polishers and rubbers, paint................. ............... Punch and press operators..................................... Repairmen, productive, n. e. c .......................... . Sanders and rough-stuff rubbers............................. Sewing-machine operators......... ................ ............ Sheet-metal machine operators, n. e. c__............... Straighteners............................................................ Testers, car, final.................................................... Testers, motor and transmission............................ Trim bench hands.................................................. Truckers, hand, and material handlers................ Truckers, power (inside).......................... ............ Welders and brazers, hand ............................... . Welders and brazers, machine............................. Tool- and die-room occupations................................... Foremen and leaders’.............................................. Tool and die makers.............................................. Tool and die maker apprentices........................... Tool-room workers, n. e. c..................................... Foundry occupations................................................... Casting cleaners..................................................... Chippers and sandblasters.................................... Coremakers.'................................. ......... .............. Inspectors.............................................. ............... Holders. ............... .............................................. Pattern makers............. ........ ................................ Skilled and semiskilled foundry workers, n. e. c... Unskilled foundry workers ................................. . Maintenance and service occupations......................... Carpenters............................. ................................ Electricians........................................................... Foremen and leaders................... ......................... Helpers and apprentices........................................ Janitors.............. ............................ ............... ...... Laborers, n. e. c ....................................................... Repairmen, skilled................................................ Repairmen, machine tools................. ............. Repairmen, other equipment........................... Millwrights.............................................................. Pipe fitters...................................................... ....... Semiskilled workers, n. e. c..................................... Service workers, n. e. c .......................................... Skilled workers, n. e. c............................... .......... Tool grinders and cutters..................................... Truck drivers......................................................... Watchmen............................................................... 449 771 2,478 13,259 5,182 4,089 802 1,803 1,111 843 1,191 5,500 17,365 3,294 4,062 8,429 19,210 1,639 13,920 1,809 1,842 18,018 1,605 2,210 2,323 726 1,555 422 6,142 3,135 36,453 692 2,801 1,953 2,322 5,091 2,486 5,525 4,804 721 2,841 1,663 1.271 713 4,560 1,353 1,310 1,872 £0.929 1.072 1.059 .955 1.028 1.001 .838 .935 .978 .949 .982 1.Q28 .847 .892 1.028 .979 1.168 1.416 1.194 .759 1.111 .925 .909 .895 .963 .891 .973 1.215 .928 .862 .946 .966 1.027 1.142 .850 .772 .816 1.055 1.059 1.031 .983 1.015 .936 .839 .997 1.019 .897 .807 432 750 1,691 12,584 4,133 2,936 654 1,584 1,061 583 1,146 4,365 13,496 3,015 3,153 7,329 17,197 1,543 12,518 1,613 1,523 17,744 1,487 2,174 2,300 709 1,526 411 6,084 3,053 31,436 591 2,426 1,673 2,126 4.207 2,172 4,916 4,253 663 2,505 1,450 1,051 617 3,919 1,258 1,154 1,371 $0.832 1.076 l.0"2 .963 1.045 1.046 .838 .961 .981 .962 .895 1.044 .858 .905 1.064 .988 1.197 1.430 1.222 .794 1.139 .928 .911 .898 .964 .897 .976 1.222 .929 .868 .961 .974 1.046 1.152 . 855 .778 .835 1.067 1.072 1.036 .998 1.029 .954 .849 1.008 1.029 .910 .838 17 21 787 675 1,049 1,153 148 219 50 2( 0 45 1,135 3,869 279 909 1,100 2,013 96 1,402 196 319 274 18 36 23 17 29 11 58 82 5,017 101 375 280 196 884 314 609 551 58 336 213 220 96 641 95 156 501 Females All departments............................................................. Processing occupations................................................... Assemblers, motor.................................. ............... Assemblers, small parts......................................... Assemblers and trimmers, body *......................... Clerical workers, factory........................................ Inspectors, n. e. c..................................................... Laborers, n. e. c ................ ......... ................... ........ Other processing occupations, n. e. c................... Paint-shop workers, n. e. c............................ ........ Punch and press operators............................ ......... Sewing-machine operators...................................... Trim bench hands................................................. Truckers, hand, and material handlers.................. Foundry occupations............ ........................................ Skilled and semiskilled foundry workers, n. e. c.._ Unskilled foundry workers.................................... Service workers, n. e. c ........................ ............. .. . 7,928 7,346 163 903 782 122 208 222 405 179 207 2,137 1,880 138 451 168 283 131 .720 .722 .730 .719 .711 .644 .683 .692 .733 .737 .747 .744 .714 .673 .697 .736 .673 704 7,500 6,937 163 903 643 109 204 219 364 172 179 2,120 1,724 137 439 156 283 124 .722 .724 .730 .719 .716 .668 .687 .694 .734 .739 .754 .745 .714 .675 .698 .742 .673 .711 1 Workers too few to justify computation of an average. * Does not include body welders. Aver age hourly earn ings 0) 0) $1,029 .812 .959 .893 .842 .757 .917 .921 0) .968 .810 .742 .908 .924 .923 1.223 .948 .501 .969 .762 0) 0) 0) 0) 0) 0) .826 .640 .851 .921 .910 1.080 .793 .747 !689 .956 .954 .971 .869 .923 .849 .773 .925 .888 .805 724 428 409* .683 .685 139 13 4 3 41 7 28 17 156 1 12 12 .687 0) 0) 7 0) 0) (l) 0) .710 0) (l) 0) 0) WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY 25 Interpretation of the regional differences in the average hourly earnings for the several occupational groups is subject to limitations on the basis of certain complex factors, most of which have their origin in the fundamental characteristics of the industry itself. As pointed out earlier, the large automobile manufacturers operate plants both within the East North Central States and in other areas, and the differences in wage levels between the two groups of plants are, in general, small.9 Within certain limits, therefore, it may be said that the occupations which have substantial numbers of workers out side the “ automobile area” might be expected to show relatively small regional differences in occupational earnings averages, principally be cause of the fact that the large companies employ some 90 percent of all the workers. This is true in the case of inspectors, trim bench hands, chassis and final assemblers, and paint polishers and rubbers, in which groups the regional differences in occupational averages are well within the general regional difference of 10.1 cents. In certain other occupations this generalization does not apply; a case in point is the tool-maker group in which the regional difference is more than 27 cents. In this instance the large difference probably reflects the fact that the outlying plants of the major companies are engaged principally in assembly and other processes which do not ordinarily involve the use of tool makers and certain other highly skilled groups. Most of the independent plants, in which wage levels tend to be lower, do, however, employ tool makers, and these smaller establishments are relatively far more important outside the East North Central States than they are within the automobile area. Thus, the difference in average earnings in this case is probably a result of the management structure of the industry to a much greater extent than it is a reflection of any marked regional differences in wage levels. Similar reasoning may be applied to certain other occupations, such, for example, as punch and press operators This general situation may be illustrated further by reference to the group of car loaders whose average hourly earnings are identical for the two areas shown. It is likely that few, if any, of the smaller independent plants have employees engaged exclusively in such work and so designated on pay rolls. No regional difference in earnings appears in this case, presumably because most, if not all, of the car loaders included are employed in the plants of the large companies. One additional factor is probably involved in these apparent regional differences and may be illustrated by the fact that average earnings for job setters in the East North Central States are 5 cents below those outside this central automobile area. Job setters in the cen 9 This comment relates, of course, only to similar establishments; most of the outlying plants of the large companies are for assembly and distribution, and it is obviously illogical to compare earnings in these plants with those in the central manufacturing plants in which the proportion of highly skilled workers and, consequently, plant average earnings are higher. 26 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY tral plants of the large companies are engaged principally in duties connected with mass-production methods, and their work may in some cases tend to be more standardized than would normally be true in a small plant subject to frequent changes of set-up. Further, it is likely that the job setter in a small plant will be expected to assume additional duties as foreman or repairman, and his rate of pay will, in consequence, tend to be higher. Since this is an occupation which would not be common in outlying plants of the large manufacturers, the explanation may well be based on this combination of circum stances rather than on any actual regional differences in wage levels for a standardized job. Female workers.—The majority of the 7,928 female workers were employed in the larger plants, and their average hourly earnings were 72.0 cents, or 24.7 cents below those for males. The earnings of half the women employed were within 4 cents of the general average for female workers. Small-parts assemblers, body assemblers and trim mers, sewing-machine operators, trim bench hands, and core-room workers in foundries accounted for the great majority of the female employees. The number of women in plants outside the East North Central States is insufficient to provide an adequate basis for general ization. W EEKLY HOURS Full-time weekly hours.— Practically four-fifths (133) of the 167 vehicle and body plants studied wrere operating on an official 40-hour week. Most of the remaining plants reported a standard week of 42 hours (the maximum normal week established at the time of the survey under the Fair Labor Standards Act). Only four plants showed a general workweek of less than 40 hours, and an equal num ber were scheduling a week of more than 42 hours. The 40-hour week was found more frequently in the “ automobile States” (the East North Central region), where almost 90 percent of the plants wTere on this schedule. This situation also results from the fact that most of the establishments were operated by a few large companies. More than three-fourths of the plants which scheduled more than 40 hours of work per week were outside the automobile area, and none of the four establishments reporting more than 42 hours were in the East North Central region. Actual weekly hours.—The 322,941 automobile-plant employees studied worked an average of 36.8 hours per week in the pay-roll period for which the data were collected (table 11). Variations in the averages for the several regions are not large except in the case of the West North Central States where the low average reflects a slack period in several large body and assembly plants. It may be noted that the average weekly hours in automobile plants were slightly 27 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY more than an hour below the figure for the parts plants studied. This difference may be in part a result of the fact that the industry was approaching the end of a model year, and any slight effect of the seasonal dip would naturally be more apparent in automobile plants than in parts plants. AVERAGE W EEKLY EARNINGS The management structure and regional distribution of the auto mobile division of the industry are reflected in the data on weekly earnings as in the case of the other wage data. The average of $35.91 for the 271,151 workers in the East North Central States and the Michigan rate of $36.09 are slightly higher than the figure ($35.42) for the country as a whole. As in the case of weekly hours, the average for weekly earnings in the West North Central States is affected by the short workweeks in several large plants. The varia tions in average weekly earnings between regions would, of course, be greater were it not for the fact that the data from decentralized plants of the large companies carry sufficient weight virtually to eliminate the influence of the relatively lower earnings rates obtain ing in the independent plants. T a b l e 11.— Average Hourly Earnings, Weekly Hours, and W eekly Earnings o f Workers in Automobile Division, by Geographic Division, M ay-June 1940 Geographic division Number of workers Average hourly earnings Average .weekly ’ hours Average weekly earnings All geographic divisions____________________________ 322,941 $0,961 36.8 $35.42 New England and Middle Atlantic__________________ East North Central.................................... .................... Michigan______________________________________ Ohio............................................................................ Indiana_______________________________________ Illinois and Wisconsin__________________________ West North Central_______________________________ Other divisions____________________________________ 29,712 271,151 229,845 15,185 15,399 10,722 8,921 13,157 .877 .977 .985 .920 .950 .923 .908 .876 38.9 36.8 36.6 38.4 36.6 37.6 31.5 37.2 34.12 35.91 36.09 35.32 34.73 34.68 28.64 32.62 Earnings and H ours in the Autom otive-Parts D ivision CHARACTERISTICS OF THE DIVISION The establishments which produce parts and accessories for auto mobiles vary widely with respect to size, organization, and type of product, and the industry division in which they are included is not clearly defined. “ Parts plants” operated by the large motor-vehicle manufacturers are, with minor exceptions, definitely classified within this division of the industry as are also independent* plants manufac turing automotive stampings, automotive electrical equipment, and numerous other products essential to automobiles. Many automo 28 WAGE STRUCTURE, M OTO R-VEH ICLE IND USTRY bile parts and accessories, however, such as body hardware, wire and cable, bearings, and other motor parts, are manufactured in plants which also produce articles not related to the motor-vehicle industry. It follows, therefore, that any group of establishments chosen to represent this division of the industry must be selected somewhat arbitrarily, and that an attempt to relate the sample of plants included in such a survey to any available statistical universe is beset with unusual difficulties. The 281 parts plants and 148,329 workers covered by the Bureau's survey were selected in consultation with manufacturers and trade associations and are believed to constitute a representative sample of the industrial division as it is ordinarily conceived. They include establishments manufacturing products which fall into 15 general categories. The numbers of plants and workers in each of these product groups appear in table 2 (p. 10). A number of the characteristics of this division of the industry, which exercise a marked influence on wage structure, differ substan tially from those of the automobile division. For example, more than half of the automobile plants included in this survey, in which more than nine-tenths of the wage earners were employed, were operated by the 11 large companies which produced virtually all of the Nation's motor vehicles. The concentration of management among parts plants is considerably less important, for little over a fourth of the plants studied, which employed about 70 percent of the workers, were operated by 24 large companies. These differences have a pro found effect on the levels and distributions of earnings. Parts plants tend also to be more specialized. This fact inevitably results in less uniformity among establishments in occupational and wage structure. The variety of products is also greater in the parts divison; many of the plants manufacture types of parts and acces sories that are not produced in any of the larger automobile plants. Women constituted nearly a fifth of the parts-plant workers while the number employed in the automobile division was little more than 2 percent of the total. Finally, the parts plants studied were, on the average, little more than a fourth as large as the automobile and body plants. This is significant since wage levels in the industry tend, in general, to vary directly with size of plant.10 The labor force of this division of the industry is characterized by relatively large numbers of semiskilled workers, notably operators of various types of machines. Although trade-union organization developed fairly late in the history of the motor-vehicle industry, 10 Additional data on the characteristics of the industry, its laborf orce, and the wage structure are con tained in Part 1 of this report. W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY 29 union agreements were in effect in about half the parts plants at the time this survey was conducted. These were the larger plants and, as a group, employed more than three-fourths of the workers. Wages in the industry as a whole rose about 17 percent between May-June 1940, the period covered by the Bureau’s survey, and November 1941. As pointed out earlier in this report, most of the increases were effected during the second quarter of 1941 as a result of new union agreements. These changes were, in general, of an industry-wide character and appear to have affected some 80 to 90 percent of the wage earners in a relatively uniform manner. Although the precise effects of these changes upon the wage structure of the automotive-parts division of the industry cannot be stated, it may be assumed that the workers in plants affected by the general wage changes received relatively uniform increases. There is, however, a group of plants, many of which were small, that were not immediately affected by the wage increases. Certain of these plants were not operating under union agreements at the time the changes took place. In other cases, the principal products of the plants were such that, from the point of view of union organization at least, the plants may not have been considered a part of the motor-vehicle industry proper; thus, any wage increases in these plants may have differed in amounts and effective dates. In view of the foregoing, it appears likely that wage increases in this division averaged somewhat less than the 17-percent change shown for the industry as a whole between the spring of 1940 and the fall of 1941. The shift from civilian production to the manufacture of war materials has already occasioned profound changes in this division of the industry. As early as October 1941, virtually all of the product of some of the larger parts plants was devoted to defense orders. With the cessation of pleasure-car production, this trend will be accelerated. Many of the plants, particularly those equipped to produce motor parts, have shifted to war orders with a minimum of dislocation, and the only major problem is one of expansion. Others, however, have already been faced with the necessity for drastic reor ganization to produce materials for which they were not equipped previously. It is in this second group that dislocations and changes in occupational distributions and wage structures are most pronounced. 30 WAGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY T able 12.— Percentage Distribution o f Workers in Automotive-Parts Division, East North Central New England and Middle Atlantic All divisions Hourly earnings Total Male Female Total Male 1.2 1.8 3.2 4.4 9.0 9.1 8.7 9.1 11.9 11.4 10.0 6.7 4.0 3.4 2.0 1.3 .8 .5 .4 .3 .2 .2 .1 .1 (2) .2 0.8 1.3 2.1 2.9 3.5 4.9 7.0 10.4 15.0 14.2 12.6 8.4 5.0 4.3 2.6 1.6 1.0 .6 .5 .4 .2 .3 .1 .1 (2) .2 100.0 100.0 Under 37.5 cents..................... 37.5 and under 42.5 cents....... 42.5 and under 47.5 cents....... 47.5 and under 52.5 cents....... 52.5 and under 57.5 cents....... 57.5 and under 62.5 cents....... 62.5 and under 67.5 cents____ 67.5 and under 72.5 cents....... 72.5 and under 77.5 cents....... 77.5 and under 82.5 cents-----82.5 and under 87.5 cents....... 87.5 and under 92.5 cents....... 92.5 and under 97.5 cents____ 97.5 and under 102.5 cents----102.5 and under 107.5 cents.. . 107.5 and under 112.5 cents... 112.5 and under 117.5 cents.._ 117.5 and under 122.5 cents.. . 122.5 and under 127.5 cents__ 127.5 and under 132.5 cents__ 132.5 and under 137.5 cents... 137.5 and under 142.5 cents__ 142.5 and under 152.5 cents__ 152.5 and under 162.5 cents__ 162.5 and under 172.5 cents__ 172.5 cents and over________ 0.8 1.6 2.3 2.6 4.3 4.9 7.5 6.8 8.8 7.9 8.9 10.2 7.6 7.9 5.8 3.8 2.9 2.0 1.1 .8 .4 .3 .3 .2 .1 .2 0.5 .8 1.4 1.7 2.6 3.1 4.1 5.2 8.0 8.5 10.6 12.5 9.4 9.6 7.1 4.7 3.6 2.4 1.3 1.0 .5 .4 .4 .2 .1 .3 2.0 4.8 6.6 6.3 11.8 12.7 22.1 13.9 13.0 5.0 1.0 .5 .2 .1 (2) (2) (2) (2) (2) Total............................. 100.0 100.0 100.0 281 Number of plants__________ Number of workers........... . 148,329 120,288 Average hourly earnings........ $0,838 $0,886 (2) 55 28,041 27,809 22,169 $0.619 $0.745 $0,790 Total Female Total Male Female 0.5 1.4 2.0 2.0 3.0 3.8 7.2 6.3 8.2 7.1 8.7 11.3 8.6 9.0 6.8 4.5 3.5 2.4 1.2 .9 .5 .3 .3 .2 .1 .2 0.3 .6 1.0 1.3 2.1 2.5 3.3 3.9 6.3 7.2 10.4 13.9 10.5 11.1 8.3 5.5 4.3 2.9 1.5 1.1 .6 .4 .4 .2 .1 .3 1.5 5.0 6.2 5.1 7.0 9.5 24.2 16.4 16.4 6.3 1.3 .7 .3 .1 (2) (2) (2) (2) 100.0 100.0 100.0 207 5,640 117,315 $0.558 $0,866 95,337 $0,915 21,978 $0,638 2.7 3.7 7.4 10.6 30.8 25.6 15.0 4.0 .1 .1 ____ ____ ____ 100.0 (2) i Plants distributed as follows: California, 8; Kentucky, 1; Oregon, 1. The number of women (52) em ployed in these plants is too small to justify computation of distributions by sex. * Less than a tenth of 1 percent. AVERAGE HOURLY EARNINGS The earnings of the 148,329 workers in the 281 automotive-parts plants included in this survey averaged 83.8 cents per hour in May and June1940 (table 12). This figure is 12.3 cents below the corresponding rate in automobile and body plants. The earnings of about half the employees in these parts plants were within a range extending 15 cents above and 15 cents below the general average. More than a fourth of the workers were earning 97.5 cents or more per hour; at the other end of the range, fewer than a sixth received less than 62.5 cents per hour. That this industry was not affected significantly by the Fair Labor Standards Act is apparent from the fact that less than 1 percent of the workers earned under 37.5 cents per hour. W AGE STRUCTURE, M OTO R-VEH ICLE IN D U STRY 31 by Average Hourly Earnings, Geographic Division, and Sex, M ay-June 1940 East North Central.—Continued Ohio, Indiana, Illi nois, and Wisconsin Michigan West North Central Total Male Female Total Male Female Total Male Female 0.1 .6 .9 .8 1.7 2.6 5.2 6.0 8.8 7.4 9.2 10.9 9.5 10.9 7.8 5.1 4.2 3.1 1.6 1.2 .6 .5 .5 .3 .1 .4 (’ ) 0.1 .2 .4 .9 1.1 1.3 2.1 5.4 7.2 11.0 13.3 11.7 13.5 9.7 6.4 5.2 3.9 2.0 1.5 .7 .6 .7 .4 .2 .5 0.2 2.6 3.5 2.5 5.1 8.9 21.4 21.9 22.7 8.2 1.6 .8 .3 .2 .1 (2) ____ ____ 1.1 2.5 3.5 3.6 4.7 5.3 9.7 6.6 7.5 6.7 8.0 11.9 7.4 6.6 5.4 3.7 2.6 1.4 .8 .5 .3 .1 .1 0.6 1.2 2.1 2.5 3.6 4.2 5.8 6.2 7.5 7.3 9.7 14.4 9.0 8.0 6.5 4.5 3.1 1.7 .9 .6 .4 .1 .1 (2) (2) (2) (2) (2) (*) 7.3 7.6 9.5 8.5 13.8 10.4 7.2 8.0 5.0 4.0 4.2 3.2 2.0 2.8 2.3 (2) .1 2.2 (2) * 1.4 .3 (2) .2 .1 3.4 8.4 10.1 8.9 9.6 10.3 28.0 8.4 7.3 3.7 .9 .5 .3 .1 (2) (a) (a) <2) 4.3 23.1 7.3 9.4 7.9 17.2 7.8 11.6 11.8 14.0 4.6 1J.2 4.3 7.7 8.9 7.8 2.2 5.6 2.2 4.4 1.9 4.7 1.1 3.5 .3 2.4 3.2 .5 .3 2.7 2.6 .3 1.7 .4 .2 ........ ~Z .2 .1 .1 .1 Other divi sions * Total 0.6 1.3 1.9 4.4 4.5 5.9 7.9 10.6 11.6 12.0 13.4 7.2 8.8 5.6 1.5 .3 .9 .6 .7 ... .1 .1 .1 100.0 100.0 9 117 90 65,948 53,069 12,879 51,367 42,268 9,099 2,345 1,974 371 $0,914 $0,969 $0,673 $0,806 $0,849 $0,588 $0,644 $0,670 $0,496 10 860 $0,767 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Hourly earnings Under 37.5 cents. 37.5 and under 42.5 cents. 42.5 and under 47.5 cents. 47.5 and under 52.5 cents. 52.5 and under 57.5 cents. 57.5 and under 62.5 cents. 62.5 and under 67.5 cents. 67.5 and under 72.5 cents. 72.5 and under 77.5 cents. 77.5 and under 82.5 cents. 82.5 and under 87.5 cents. 87.5 and under 92.5 cents. 92.5 and under 97.5 cents. 97.5 and under 102.5 cents. 102.5 and under 107.5 cents. 107.5 and under 112.5 cents. 112.5 and under 117.5 cents. 117.5 and under 122.5 cents. 122.5 and under 127.5 cents. 127.5 and under 132.5 cents. 132.5 and under 137.5 cents. 137.5 and under 142.5 cents. 142.5 and under 152.5 cents. 152.5 and under 162.5 cents. 162.5 and under 172.5 cents. 172.5 cents and over. Total. Number of plants. Number of workers. Average hourly earnings. The average hourly earnings of males were 88.6 cents while those for women were 61.9 cents. As might be expected, the earnings of women showed the greater concentration—half of them were within 8.6 cents of the average, above or below, as compared with a corre sponding range of 12.5 cents from the average for men. More than a fifth of the men showed earnings in excess of $1,025 per hour, but the proportion of women in this category was negligible. Conversely, scarcely more than 1 percent of the men received less than 42.5 cents per hour but the earnings of almost 7 percent of the women were below this level'. 32 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY Regional Differences Nearly three-fourths of the parts plants studied, as compared with a little over half of the automobile and body plants, were in the five East North Central States. The concentration of employees in this area, however, was slightly less in the parts division than in the auto mobile division of the industry. Michigan, which had almost threefourths of all the workers in the automobile division, had less than half the parts-plant employees. Average hourly earnings of partsplant workers in the five “ automobile” States as a group were less than 3 cents above the rate for the country as a whole, but the Mich igan figure exceeded the industry average by 7.6 cents. Inter-area differences in averages were considerably greater in this division of the industry than in the automobile division. A comparison of the rate for parts plants in the East North Central States with the figure for all other areas combined shows a difference of 12.8 cents, and average earnings in Michigan were 17.6 cents per hour above the combined rate for all States outside the East North Central region. It should not be assumed, however, that the differences in these averages or those shown in table 12 are due to regional factors alone. The classification of plants on a regional basis does not result in groups which are strictly comparable. Any adequate interpretation of these regional differences in rates must take into account a complex series of factors, some of which appear to accentuate the differences whereas others seem to offset them. The relatively low earnings shown for the West North Central States will serve as an example. This region happens to be the only area that does not include one or more plants operated by one of the large companies which, in general, tend to have higher wage levels. On the other hand, the high-wage area, that is, the group of East North Central States, shows a disproportionately large number of plants producing wheels and brakes, frames, and axles, in which relatively high wages are paid. The functional and manage ment structure of the industry, the extent of trade-union organization, sex ratios among employees, and various less tangible influences may have combined to maintain a high level of wages among automotive workers in this area quite apart from these product differences. It may be noted that earlier studies of this industry by the Bureau have consistently shown higher wages in Michigan than in other States. The differences in sex ratios among parts-plant employees in the several regions are not striking. The proportions of women varied from 6 percent in the 10 plants located in California, Kentucky, and W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY 33 Oregon to 20 percent in Indiana, but the former group showed too few woman employees to furnish a significant ratio. The inter-area differ ences in the average hourly earnings of men and women followed essentially the same pattern as for all workers combined, except that women’s earnings showed smaller differences in terms of cents per hour as a result of the universally high concentration of women’s earnings around the general average. As in the case of the average for men, the comparatively low earnings of women in the West North Central States is partly accounted for by the fact that this area in cludes none of the plants operated by the larger companies. The average earnings of women in the 10 plants in California, Kentucky,, and Oregon are not significant because of the small number of workers. Earnings and Type o f Product The 281 parts plants studied have been classified according to type of product on the basis of categories generally accepted by the indus try.11 Average hourly earnings for workers in the several product groups range from 71.5 cents in plants producing pistons, valves, and parts thereof to 98.7 cents for axle plants (table 13). As has already been pointed out, the earnings in any group of plants or in any area are affected by interrelated factors which are difficult to isolate. Other things being equal, however, it would be expected that product groups of plants showing hourly earnings above the general average would tend to be concentrated in the high-wage area, to contain relatively small numbers of female workers, and to include dispropor tionately large numbers of wage earners employed by the larger companies. Of the six product groups in which earnings are above the average for all parts plants, three (wheels, rims, and brakes; frames; and axles) had all of these characteristics. In two of the three remaining groups— the plants producing leaf springs and bumpers and those producing gears— the relatively high average earnings resulted principally from the skills required and the type of working conditions. In addition, a relatively larger number of the gear plants were in the higher-wage East North Central States. Earnings in body-hardware plants were comparatively high despite the employment of large numbers of females, but it may be noted that the earnings of women in these plants were the highest for any product group where women constituted a substantial proportion of the workers.1 11 It is recogBized that such classification may result in some inaccuracies, particularly in the case of plants manufacturing more than one type of product (such plants were classified on the basis of major product by value). Since the categories are those used by the industry itself, it is believed that the results will be useful and that any errors involved are inconsequential. 34 WAGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY T able 13.— Average Hourly Earnings o f Workers in Automotive-Parts D iviEast North Central All divisions Type of product All products.................................. Num ber of plants Males All workers Females All workers Aver Aver Aver Aver age age Num age age Num hourly Num hourly Num hourly hourly ber ber ber ber earn earn earn earn ings ings ings ings 281 148,329 $0.838 120,288 $0,886 28,041 $0.619 117,315 $0,866 Wheels, rims, and brakes........... . Chassis frames............................ Pistons, valves, and parts thereof 8 5 29 9,421 7,348 8,130 .921 .929 .715 8,991 7,189 6,972 .930 .932 .752 430 159 1,158 .688 .822 .481 8,817 7,002 6,910 .943 .939 .728 Leaf springs and bumpers....... . Automotive stampings................. Miscellaneous machined parts__ 21 54 33 4,790 12,827 11,583 .883 .779 .808 4,716 9,785 10,495 .887 .828 .831 74 3,042 1,088 .590 .606 .555 3,756 10,099 7,921 .898 .823 .842 Instruments t............................... Automotive electrical equipment. 4 35 5,543 22,024 .731 .796 3,105 15,092 .834 .875 2,438 6,932 .586 .616 5,380 19,401 .737 .818 Radiators...................................... Carburetors.......................... ...... Coil (wire) springs........................ Gears........................... ................. Bearings........................................ Axles......................... .................. Automobile-body hardware......... 11 7 14 13 18 12 17 4,251 3,070 7,238 6,466 15,426 14,025 16,187 .786 .826 .788 .896 .795 .987 .881 3,769 2,026 4,892 6.446 12,184 14,013 10,613 .809 .910 .856 .897 .849 .987 .974 482 1,044 2,346 20 3,242 12 5,574 .614 .642 .636 .651 .585 .595 .687 897 2,451 5,884 5,688 6,599 13,309 13,201 .747 .837 .808 .920 .846 .995 .896 •Speedometers, ammeters, gasoline gages, oil-pressure gages, thermometers, etc. Average hourly earnings were relatively low in plants manufactur ing pistons and valves and in those producing instruments. The low earnings in plants manufacturing pistons, valves, and other machined motor parts are explained in large part by the extent to which these products are manufactured on a mass-production basis with the use of automatic machinery; skill requirements in this product group are consequently comparatively low. The average hourly earnings of males in these plants were the lowest of any of the product groups. Women constituted more than two-fifths of the total labor force in the plants making instruments, and the earnings average for the product group consequently reflects their generally lower earnings level. Plant Averages A distribution of individual plants according to the average hourly earnings of all their workers together shows approximately half the plants with average earnings levels between 60 and 85 cents per hour; these plants employed a little more than two-fifths of the workers in the parts division of the industry (table 14). Less than a fifth of the plants had earnings averages above 90 cents per hour, and these, as might be expected, were the larger plants; as a group, they in cluded almost two-fifths of the workers. All of these highest-wage plants, except one comparatively small establishment, were in the East North Central States. Twenty-three plants showed average hourly earnings below 50 cents. These were the smaller plants, 35 W AGE STRUCTURE, M O TO R-VEH ICLE IND USTRY si on, by Type o f Product, Geographic Division, and Sex, M ay-June 1940 East North Central--Con. Males Females Other divisions All workers Males Females Type of product Aver Aver Aver Aver Aver age Num age Num age Num age Num age Num hourly hourly hourly hourly hourly ber ber ber ber ber earn earn earn earn earn ings ings ings ings ings 96,337 $0.915 21,978 $0,638 31,014 $0,738 24,951 $0,780 6,063 $0,555 8,428 6,843 5,860 .951 .941 .770 389 159 1,050 .713 .822 .485 604 346 1,220 .611 .752 .634 563 346 1,112 .620 .752 .653 41 .484 108 .444 3,686 7,946 7,284 .904 .870 .862 70 2,153 637 .591 .630 .579 1,034 2,728 3,662 .833 .630 .736 1,030 1,839 3,211 .833 .664 .762 4 889 451 .577 .555 .519 3,016 13,147 .840 .902 2,364 6,254 .591 .630 163 2,623 .543 .646 89 1,945 .628 .697 74 678 .438 .499 805 1,592 3,914 5,668 5,200 13,297 8,651 .764 .932 .881 .921 .902 .995 .991 92 859 1,970 20 1,399 12 4,550 .586 .650 .654 .651 .629 .595 .705 3,354 619 1,354 778 8,827 716 2,986 .796 .786 .694 .739 .759 .840 .816 2,964 434 978 778 6,984 716 1,962 .820 .845 .750 .739 .812 .840 .907 390 185 376 .619 .604 .538 1,843 .554 1,024 .604 All products. Wheels, rims, and brakes. Chassis frames. Pistons, valves, and parts thereof. Leaf springs and bumpers. Automotive stampings. M iscellaneou s machined parts. Instruments.1 Automotive electrical equip ment. Radiators. Carburetors. Coil (wire) springs. Gears. Bearings. Axles. Automobile-body hardware. employing an average of less than 120 workers; 13 of the 23 were in the East North Central States. Hourly earnings and size oj operating company.— The concentration of employees in plants operated by large companies, as already noted, T able 14.— Distribution o f Plants and Workers in Automotive-Parts Division, by Plant Average H ourly Earnings, Size o f Company, and Region, M ay-June 1940 All companies East Plant average hourly earn All divisions North Other divi Cen sions ings (in cents) tral Companies employing 1,500 or more workers Companies employing fewer than 1,500 workers East Other All divisions North Cen divi sions tral East Other All divisions North divi Cen sions tral Work Work Plants Work ers Plants Plants Plants ers Plants Plants Plants ers Plants Plants Under 40.0___ 40.0-44.9......... 45.0-49.9......... 50.0-54.9......... 55.0-59.9......... 60.0-64.9......... 65.0-69.9......... 70.0-74.9......... 75.0-79.9......... 80.0-84.9......... 85.0-89.9......... 90.0-94.9......... 95.0-99.9_____ 100.0 and over Totalr-Average hourly earn ings............. 208 478 2.002 2,774 iz ,m 7,313 *5,726 13,137 15,722 20,130 21,344 27,388 10,747 17,999 1 2 10 17 14 18 14 22 17 26 19 22 11 14 3 4 3 7 8 7 8 14 10 6 3 281 148,329 207 74 4 6 13 24 22 25 22 36 27 32 22 22 12 14 $0,838 1 $0,866 $0,738 (0 3,846 (*) 8,068 10,349 14,560 19,056 25,000 7,861 15,786 1 2 1 6 6 10 11 14 8 6 4 4 2 2 79 104,526 65 14 2 3 1 10 10 12 13 14 8 6 $0,881 1Workers in 2 plants included in interval 60.0-64.0 cents. * Workers in 1 plant included in interval 7a 0-74.9 cents. 1 1 $0,903 $0,780 208 478 2,002 2,774 3,361 3,467 5,726 5,069 5,373 5. 570 2,288 2,388 2,886 2,213 1 2 10 17 13 16 13 16 11 16 8 8 3 8 3 4 3 7 7 6 8 10 6 4 1 202 43,803 142 60 4 6 13 24 20 22 21 26 17 20 9 8 4 8 $0,735 1 $0,759 $0,681 36 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY is somewhat less in the parts division of the industry than in the automobile and body division. About 70 percent of all the work ers were employed in parts plants operated by the larger companies as compared with 90 percent in the automobile division.12 The 104,526 workers employed in the parts plants of large firms showed average hourly earnings of 88.1 cents, or 14.6 cents above the aver age for employees of the smaller firms. The corresponding differ ence between large and small automobile and body manufacturers was slightly less— 13.5 cents. More than four-fifths of the parts plants operated by large companies were in the East North Cen tral States and included a similar proportion of their employees. The regional difference between plants of the larger companies, which amounted to 12.3 cents (table 14), appears to be striking, but it must be borne in mind that groups of plants in the East North Central States are not strictly comparable with those in other areas, even when they are operated by the same company. This apparent large regional difference is partly a reflection of the fact that the East North Central States include disproportionately large numbers of parts plants in which hourly earnings were above the general average because of the nature of the product and its requirements in terms of highly skilled workers. Conversely, 12 of the 14 plants operated outside the “ automobile States” by the large companies were manufacturing products which showed earnings below the general level for all parts plants. It is probable that the inter-area difference of 12.3 cents in earnings among plants of the large companies tends to overstate the actual regional difference, whereas the regional variation of 7.8 cents between small companies may be an understatement. None of the plants operated by the larger companies showed aver age earnings under 55 cents per hour, but nearly a fourth of the small-company plants had averages below that level. At the other end of the scale, a third of the large-company plants had earnings averages above 90 cents per hour, but only a tenth of the plants operated by small companies were in this category. Earnings and size of plant.— The relationship between average hourly earnings of workers and size of establishment is somewhat more pronounced among parts plants than in the automobile divi sion of the industry. Only 6 of the 69 establishments with 100 employees or less showed plant average hourly earnings of 80 cents or more, but only 4 of the 14 plants with more than 2,500 workers each had averages below 80 cents (table 15); of the 26 plants in which 12 It is recognized that these ratios as well as the differences in plant average hourly earnings are affected by the definition of large and small companies, both of which are arbitrary. However, in the case of the automobile division, the two groups of companies were clear-cut and a dividing point of 5,000 employees was used. In the case of parts plants, which are about a fourth as large, companies employing 1,500 or more workers were considered as large. 37 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY earnings averaged 95 cents or more per hour, 15 had more than 500 employees each. More than a fourth of all the establishments showed between 101 and 250 workers each and the plant average hourly earnings among this group were widely distributed. T able 15.— Distribution o f Plants in Automotive-Parts Division, by Plant Average Hourly Earnings and Size o f Plant, M ay-June 1940 Total Average hourly earnings Under 40-0 cents 40-0-44.9 Pent.a __ 46.0-49.9 cents. „ 500-64.9 cents 55.0 59.9 cents____________ 60.0-64.9 cents....................... 65.0 69.9 cents___ 70.0-74.9 cents __ r_ 75.0-79.9 cents....................... 80.0-84.9 cents....................... 65.0-69.9 cents____ 90.0-94.9 cents__ ^ 95.0-99 9 cents _____ 100.0 cents and over............. Size of plant in terms of number of workers Em Under ployees Plants 51 208 478 2.002 2,774 3,894 6.780 6.226 12 ^37 15. 722 20.130 21. 344 27.388 10. 747 17.999 4 6 13 24 22 25 22 36 27 32 22 22 12 14 281 Number of plants....... Number of employees_____ 148,329 Average hourly earnings___ $0,838 2 1 3 7 2 4 3 4 1 51-100 101-250 251-500 3 5 7 5 6 4 6 1 2 3 501- 1,000 1,001- 2,500 2,501 and over 2 2 4 7 9 8 1 1 2 6 2 3 4 5 8 8 5 2 5 4 7 4 7 4 7 5 1 78 55 42 11 8 7 9 2 2 10 1 1 2 3 3 3 1 3 2 2 1 5 2 4 23 14 881 2,889 11,787 18,378 24,790 34.255 $0,599 $0,627 $0,698 $0,791 $0,808 $0,847 55,349 $0,904 27 42 5 2 Size o f Community and Unionization The earnings of workers in organized parts plants in the East North Central States tended, in general, to be higher in the larger cities than in the small, although the relationship was neither close nor uniform. There was virtually no relationship between earnings and size of city in States outside the East North Central area or in the nonunion plants, as a whole. Earnings in union plants were, as might be expected, somewhat higher than those in nonunion plants, and the differences were larger in the East North Central States than elsewhere. Slightly more than half (146) of the plants reported union agreements in effect at the time this study was made. The organized plants were, on the average, more than three times as large as the plants which reported no union agreements in effect, and the latter group employed less than a fourth of all the workers. Of the 207 plants in the East North Central States, 115 reported union agreements, but these establish ments employed 80 percent of the workers in the region. Approxi mately two-thirds of the workers outside this region were employed in the 31 organized plants; 43 plants, with the remaining third of the employees, reported no union agreements. 38 WAGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY Occupational Differences Male workers.—Almost four-fifths of the males employed in the automotive-parts division of the industry were working in production departments. As in the case of the automobile division, hourly earnings of male workers in these departments were slightly below (2.1 cents) the general average for all men in the parts division as a whole (table 16). Maintenance workers received an average of 88.1 cents per hour or one-half cent below the figure for all males, and the rate for all male foundry workers was 2.5 cents below the general average. The average for males in tool and die departments in parts plants was $1,088 or 20.2 cents above the average earnings of all men. T able 16.— Average Hourly Earnings o f Workers in Automotive-Parts Division, by Sex, Occupation, and Geographic Division, M ay-June 1940 All divisions Occupation East North Central Other divisions Aver Aver Aver age Num age Num age Num hourly hourly hourly ber ber ber earn earn earn ings ings ings Males All departments..................................................................... 120,288 $0,886 95,337 $0,915 24,951 Processing occupations------------------------------------------------- 95,328 1,522 Assemblers, axle.............................................................. 1,557 Assemblers, sheet-metal, subassembly........................... 7,866 Assemblers, small parts.................................................. 408 Assemblers, spring and bumper...................................... 478 Bench hands, machined parts......................................... Clerical workers, factory.................................................. 2,624 472 Crane and hoist operators................................................ 907 Die setters......................................................................... 645 Drop-hammer operators.................................................. Foremen and lay-out men............................................... 1,968 946 Forge-shop workers, not elsewhere classified.................. 438 Formers and fitters, springs and bumpers...................... Hardener and annealer helpers........................................ 1,302 Hardeners and annealers.................................................. 1, 210 542 Heaters, forge shop........................................................... Helpers, processing occupations, not elsewhere clas 803 sified......... ................... ................................................ 329 Inspectors, tool, die, and lay-out..................................... Inspectors, not elsewhere classified................................. 7,050 2,605 Job setters....................................................................... 5,225 Laborers, not elsewhere classified................................... Leaders and relief workers............................................... 1,127 337 Metal finishers...... .......................................................... Operators, machining processes...................................... 23,051 548 Boring machines........................................................ Drill presses............................................................... 4,268 836 Gear cutters............................................................... Grinding machines.................................................... 6,075 Lathes, automatic and semiautomatic..................... 5,924 Lathes, hand.............................................................. 1,270 Milling machines......................... .................. ......... 1,501 Miscellaneous machines, not elsewhere classified... 2,629 Other processing occupations, not elsewhere Classified- 5,647 1,063 Packers and craters.......................... . ..... ..................... 795 Paint-shop workers, not elsewhere classified.................. 620 Painters, spray................................................................. 912 Platers.............. _............................................................. Polishers and buffers, plating.......................................... 3,356 222 Polishers and rubbers, paint........................................... 7,956 Punch and press operators............................................. 820 Repairmen, productive, not elsewhere classified............ 684 Sheet-metal-machine operators, not elsewhere classified. Straighteners.................................................................... 457 Truckers, hand, and material handlers........................... 5,784 $0,780 .865 76,065 .983 1,476 .799 748 .814 6,201 327 .870 .865 375 .786 2,036 413 .860 .982 778 1.361 575 .996 1,705 813 .939 324 .946 951 .844 935 .896 450 1.035 .894 19,263 .986 46 .794 809 .842 1,665 .891 81 .905 103 .815 588 .877 59 .994 129 1.416 70 1.017 263 .958 133 .957 114 .883 351 .930 275 1.070 92 .753 .891 .804 .710 .790 .710 .687 .748 .909 .942 .862 .834 .917 .743 .779 .868 632 .740 257 1.083 .825 5,491 .956 1,841 .741 4,141 .957 796 279 .890 .886 18,155 .910 495 .871 3,697 .940 680 .892 4,179 .914 4,662 .852 1,147 .865 1,218 .838 2,077 .871 4,857 .691 707 .829 626 .894 528 729 .862 1.019 2,845 1.006 196 .853 6,544 554 .897 549 .848 .911 430 .746 4,743 .791 1.111 .860 .995 .764 .983 .940 .916 .929 .891 .981 .933 .946 .869 .882 .877 .889 .717 .868 .929 .891 1.028 1.049 .886 .917 .879 .916 .770 .563 .987 .704 .866 .657 .896 .683 .778 .732 .750 .756 .805 .798 .695 .784 .697 .766 .639 .697 .712 .755 .975 .691 .714 .860 .727 .825 .644 171 72 1,559 764 1,084 331 58 4,896 53 571 156 1,896 1,262 123 283 552 790 356 169 92 183 511 26 1,412 266 135 27 1,041 39 W AG E STRUCTURE, M O TO R-VEH ICLE IN D U ST R Y T a b l e 16.— Average Hourly Earnings o f Workers in Automotive-Parts Division, by Sex, Occupation, and Geographic Division, M ay-June 1940— Continued All divisions Occupation East North Central Other divisions Aver Aver Average Num age Num Num hourly hourly hourly ber ber ber earn earn earn ings ings ings A/a/e* *—Continued Processing occupations—Continued. Truckers, power, inside.................................................. Welders and brazers, hand............................................ . Welders and brazers, machine........................................ 802 $0,821 1,088 .966 1,710 .874 672 $0,840 971 1.010 1,415 .905 Tool- and die-room occupations............................................ Foremen and leaders..................................................... . Tool and die makers..... ................................ - ................ Tool and die maker apprentices..................................... Tool-room workers, not elsewhere classified................ 9,042 354 7,641 819 228 1.088 1.354 1.126 .635 .969 6,907 270 5,935 538 164 Foundry occupations............................................................ Casting cleaners............................................................... Chippers and sand blasters............................................. Coremakers...................................................................... Inspectors......................................................................... Molders......................................— ................................ Pattern makers - _ Skilled and semiskilled foundry workers, not elsewhere classified........................................................................ Unskilled foundry workers.............................................. 2,070 231 241 119 60 438 63 .861 .821 .837 .886 .758 .950 1.073 571 347 .869 .752 Maintenance and service occupations................................... 13,848 314 Carpenters........................................................................ 989 Electricians...................................................................... 538 Foremen and leaders....................................................... 1,156 Helpers and apprentices.................................................. 960 Janitors............................................................................. 995 Laborers, not elsewhere classified................................... Repairmen, skilled........................................................... 2,608 2,490 Repairmen, machine tools........................................ 118 Repairmen, other equipment................................... 1,189 Millwrights........................................................... *------470 Pipefitters......................................................................... 571 Semiskilled workers, not elsewhere classified____ _____ 309 Service workers............... ................................................ 1,395 Skilled workers, not elsewhere classified........................ 758 Tool grinders and cutters................................................ 415 Truck drivers.................................................................. Watchmen........................................................................ 1,181 Females All departments......................................................- .............. 28,041 Processing occupations........................................................... 27,801 661 Assemblers, sheet-metal, subassembly............................ Assemblers, small parts............................ ...................... 11,110 221 Clerical workers, factory............................... - ................ 4,854 Inspectors, not elsewhere classified................................. 528 Laborers, not elsewhere classified.................................... 3,661 Operators, machining processes...................................... Drill presses.............................................................. 1,017 306 Grinding machines.................................................... 73 Lathes, automatic and semiautomatic..................... 163 Milling machines....................................................... Miscellaneous machines, not elsewhere classified___ 2,102 769 Other processing occupations, not elsewhere classified.. 862 Packers and craters......................... ................................ 640 Paint-shop workers, not elsewhere classified--------------200 Painters, spray..................................................... —........ Punch and press operators...................... ........................ 3,599 590 Truckers, hand, and material handlers..... ..................... 106 Welders and brazers, machine......................................... 130 117 295 $0,727 .630 .730 1.128 1.370 1.162 .658 .980 2,135 84 1,706 281 64 .962 1.305 1.006 .592 .942 1,646 191 180 92 52 340 55 .869 .825 .842 .897 .761 .974 1.085 424 40 61 27 8 98 8 .823 .796 .821 .851 0) .855 0) 470 266 .867 .749 101 81 .879 .762 .881 10,719 241 .883 810 1.009 1.109 405 .792 764 735 .680 .761 738 .984 2,014 .985 1,922 92 .960 .919 966 1.001 373 470 .826 232 .713 .954 1,095 645 .917 .800 306 925 .687 .907 .901 1.030 1.137 .823 .695 .792 1,013 1.014 .984 .940 1.032 .836 .735 .977 .941 .822 .702 3,129 73 179 133 392 225 257 594 568 26 223 97 101 77 300 113 109 256 .794 .822 .921 1.024 .731 .630 .672 .886 .887 .881 .829 .878 .781 .649 .871 .788 .743 .631 .619 21,978 .638 6,063 .555 .619 .629 .617 .540 .586 .589 .631 .637 .564 .576 .596 .644 653 .490 .686. .567 .686 .618 .649 .638 .628 .633 .551 .604 .605 .652 .652 .573 .576 .607 .659 .680 .512 .698 .557 .706 .642 .659 6,015 317 1,867 61 1,437 121 793 212 280 7 17 277 172 193 75 21 755 194 9 .555 .630 .538 .511 .546 .539 .559 .578 .564 0) 0) .544 .568 .418 .596 0) .607 .570 (>) 21,786 344 9,243 160 3,417 407 2,868 805 26 66 146 1,825 597 669 565 179 2,844 396 97 Foundry occupations *........................................................... 27 .60i 25 .616 2 Service occupations................................................... ............. Janitresses............................................................ ............. Service workers, not elsewhere classified_____________ 213 176 37 .604 .595 .646 167 136 31 .628 .619 .663 46 40 6 i Workers too few to justify computation of an average. * Numbers insufficient to classify by detailed occupational groups. 0) .519 .512 0) 40 W AGE STRU CTU RE , M O TO R-VEH ICLE IN D U ST R Y Working foremen in tool and die rooms, as in the case of automobile and body plants, were the highest-paid single occupational group in the parts plants; their average of $1,354 was 6.2 cents below that for similar employees in automobile plants.13 Except for apprentices, the janitors, with average earnings of 68.0 cents per hour, were the lowestpaid group. Earnings among male workers in production depart ments varied from $1,361 per hour for drop-hammer operators to 69.1 cents.for packers and craters. In the automobile and body division the averages for 23 occupations, which included nearly half the male production workers, as already pointed out, were within 3 cents of the general average for the group. No such high degree of concen tration was found in the earnings of men employed in the production departments of parts plants; a range 3 cents above and below the group average of 86.5 cents included only 16 occupations which employed less than two-fifths of the workers. About one-eighth of all the men employed in parts plants were classified in the 11 occupational groups for which average earnings were $1.00 or more per hour, as compared with a quarter of the men classified in 28 occupations in automobile and body plants. Pour occupational groups totaling about 9,000 parts-plant male employees showed average hourly earnings in excess of $1.10; included were maintenance foremen and leaders ($1,109), tool and die makers ($1,126), foremen and leaders in tool and die rooms ($1,354), and drop-hammer operators ($1,361). Fourteen occupational groups, in which nearly a fifth of the male workers were classified, showed average hourly earnings below the 80-cent level; in the automobile division the 5,091 janitors were the only employees (apprentices excepted) in this category. Six occupational groups (in addition to helpers and apprentices in production departments), which included more than 14,000 male parts-plant workers, had average earnings under 75 cents per hour. These groups were janitors (68.0 cents), watchmen (68.7 cents), packers and craters (69.1 cents), miscella neous service workers (71.3 cents), laborers in production depart ments (74.1 cents), and truckers and material handlers (74.6 cents). Data on regional differences in the earnings of occupational groups are, in general, not conclusive. As is pointed out above in connection with the general averages of earnings, none of the geographical rate differences is clear cut. Further, the numbers of workers in several of the occupational categories shown are too small to justify the com putation of averages even when data for all the States outside the East North Central area are combined. 18 It should be noted that important differences In the technological characteristics and occupational patterns of the two divisions of the motor-vehicle industry make comparisons of occupational earnings rates somewhat hazardous. Certain occupations, such as line assembly work, which are very important in large vehicle plants, do not appear in the parts division. Further, a few occupations shown under the same headings may not, because of differences in technology, be strictly comparable from one division to another. 41 W AG E STRU CTU RE , M O TO R-VEH ICLE IN D U ST R Y Female workers.— Practically all of the 28,000 women employed in the parts plants studied were working in production departments. Nearly 40 percent were small-parts assemblers whose earnings aver aged 61.7 cents per hour. The highest earnings paid to women were received by paint-shop workers and by punch and press operators. The rate for both of these occupational groups was 68.6 cents per hour and the latter included about an eighth of the total females. The 862 women classified as packers and craters had the lowest rate of earnings. Inspectors with average hourly earnings of 58.6 cents, drill-press operators (63.7 cents), and miscellaneous machine operators (64.4 cents) were the only other occupational groups which included substantial numbers of women. W EE K LY HOURS AND EARNINGS Full-tim e W eekly Hours Four-fifths (223) of the 281 parts plants included in the survey were operated on the basis of a 40-hour week. The majority of the remainder had a 42-hour schedule although 11 were operating less than 40 hours and 7 were normally working overtime, i. e., more than the 42 hours then allowed at basic wage rates by the Fair Labor Standards Act. Full-time hours showed little variation between the East North Central or “ automobile” States and the other areas. Actual W eekly Hours Employees in the parts plants studied actually worked an average of 37.9 hours per week during the pay-roll period for which the data were collected. Regional differences in average weekly hours were not striking; none varied from the combined average by more than 2.2 hours (table 17). T able 17.— Average* H ourly Earnings* Weekly Hours, and W eekly Earnings o f Workers in Automotive-Parts Division* by Geographic Division, M ay-June 1940 Number Number Average of of hourly plants workers earnings Geographic division All divisions._r __ _ _ New England nnri Mid dip. Atlantic__ _ ___ East North Central_____________________________ Michigan _ ___ __ . . .. _ . Ohio_____________________________________ Indiana..___________________________________ Illinois and Wisconsin . West. North Control Other divisions . _ *_ _ .. _ _ 281 148,329 55 207 90 51 25 41 9 10 27^809~ 117,315 65,948 19,733 18,149 13,485 2,345 860 Average weekly hours Average weekly earnings $0,838 37.9 $31.75 .745 .866 .914 .823 .834 .747 .644 .767 39.2 37.6 37.0 37.3 38.2 40.1 38.2 35.9 29.18 32.54 33.80 30.73 31.83 29.94 24.56 27.55 Since the data on weekly hours are based on a single pay roll, they necessarily reflect the different slack and busy periods of the various groups of plants. This is apparent from the averages for the several groups of workers employed in establishments manufacturing different 42 W AGE STRU CTU RE, M O TO R-VEH ICLE IN D U ST R Y types of products. However, none of the group averages diifered from the general figure by as much as 4 hours per week (table 18). T able 18.— Average H ourly Earning?, W eekly Hours, and W eekly Earnings o f Workers in Automotive-Parts Division, by Product, M ay-June 1940 Number Number Average hourly of of plants workers earnings Product All prndnets_ Wheels, rims, and brakes _ _ _ __ ....... Chassis frames__________________________________ Pistons, valves, and parts thereof Leaf springs and bumpers AjitomntivA stampings .... Miscellaneous machined parts. _ _ ....... . _ ___ ___ _ __ Instrumentsl— _________________________________ AufnnintivA eleetrinal equipment __ _ Radiators Carburetors . __ _ _. _ Coil (wire) springs_______________________________ Gears „_ Bearings _ Arles Automobile-body hardware _ __ _ .. Average weekly hours Average weekly earnings 281 148,329 $0,838 37.9 $31.75 8 5 29 21 64 33 4 35 11 7 14 13 18 12 17 9,421 7,348 8,130 4,790 12,827 11,583 5,543 22,024 4,251 3,070 7,238 6,466 15,426 14,025 16,187 .921 .929 .715 .883 .779 .808 .731 .796 .786 .826 .788 .896 .795 .987 36.0 40.8 39.1 36.0 36.7 38.2 38.8 37.4 38.7 38.0 34.0 36.3 38.6 39.9 38.3 33.13 37.94 27.93 31.82 28.56 30.89 28,36 29.81 30.45 31.38 26.78 32.53 30.65 39.40 33.73 .881 1Speedometers, ammeters, gasoline gages, oil-pressure gages, thermometers, etc. Average W eekly Earnings Weekly earnings for all parts-plant workers averaged $31.75 during the pay-roll period used as the basis for this study (table 17). The lowest average is that for the West North Central States and is explained by the low average hourly earnings rate discussed earlier. The highest weekly figure was that for Michigan workers who earned an average of $33.80. As in the case of hours, weekly earnings data were affected by the operating schedules of individual plants during the pay-roll period used as the basis for the study. M otor •Vehicle Industry as a W hole AVERAGE HOURLY EARNINGS The average hourly earnings of the entire group of 471,270 employees in the 448 plants included in the survey of the motor-vehicle industry amounted to 92.2 cents during May and June 1940, and the earnings of half of the workers were within approximately 10 cents of the general average (table 19). The comparatively high level of earninga in the industry is emphasized by the fact that the rates for a fourth of this large group of workers were in excess of $1.03 per hour, whereas fewer than 3 percent, principally women employed in parts plants, earned less than 52.5 cents per hour. Comparison of the earnings of workers in plants in the “ automobile region,” that is, the East North Central States (Michigan, Illinois, Ohio, Indiana, and Wisconsin), with the average for other areas reveals a difference of 11.7 cents. The data shown in table 19 provide a general picture of wage levels in the industry as it is popularly conceived. 43 W AG E STRU CTU RE , M O TO R-VEH ICLE IN D U ST R Y T able 19.— Percentage Distribution o f Workers in M otor-Vehicle Industry by Average Hourly Earnings and Geographic Division, M ay-June 1940 Hourly earnings (in cents) Under 37.5........................ 37.5 and under 42.5.......... 42.5 and under 47.5.......... 47,5 and under 52.5......... 52.5 and under 57.5-------57.5 and under 62.5-------62.5 and under 67.5.......... 67.5 and under 72.5_____ 72.5 and under 77.5_____ 77.5 and under 82.5_____ 82.5 and under 87.5.......... 87.5 and under 92.5.......... 92.5 and under 97.5_____ 97.5 and under 102.5------102.5 and under 107.5----107.5 and under 112.5----112.5 and under 117.5___ All divi sions 0.4 .6 .8 1.1 1.7 2.0 3.0 3.1 6.2 7.5 9.9 13.4 10.8 13.9 9.2 5.9 4.4 East North Central^ 0.2 .5 .7 .7 1.1 1.4 2.7 2.7 5.5 7.1 9.2 13.6 11.0 15.1 10.2 6.4 4.9 Other divi sions 1.3 1.2 1.7 2.5 4.5 4.7 4.4 4.8 9.1 9.6 13.0 12.3 10.3 8.6 4.6 3.5 2.0 All divi sions East North Cen tral! 117.5 and under 122.5___ 122.5 and under 127.5___ 127.5 and under 132.5___ 132.5 and under 137.5___ 137.5 and under 142.5..,.. 142.5 and under 152.5___ 152.5 and under 162.5___ 162.5 and under 172.5___ 172.5 and over.................. 2.3 1.2 .8 .6 .4 .4 .2 .1 .1 2.6 1.3 .9 .7 .5 .5 .2 .1 .2 0.9 .4 .2 .1 .1 .1 (2) (2) .1 Total...................... 100.0 100.0 100.0 Number of plants............ 448 296 Number of workers_____ 471 270 388,466 Average hourly earnings. $0 '«?2 $0,943 Average weekly hours. 37 2 37.0 Average weekly earnings $3 4 . 26 $3189 152 82,804 $0,826 37.9 $31.30 Hourly earnings (in cents) Other divi sions * Ohio, Indiana, Illinois, Michigan, and Wisconsin. * Less than a tenth of 1 percent. The group of establishments from which the data for table 20 were collected include only those classified by the 1939 Census of Manu factures as belonging to the motor-vehicle, automotive-stamping, or automotive-electrical-equipment industries. This group is somewhat more homogeneous than the larger group on which table 19 is based because of the exclusion of establishments manufacturing such items as hardware, coil springs, locks, and other products which, as far as technological processes and occupations are concerned, have little in common with the motor-vehicle industry proper. This greater similarity of plants included is apparent from the somewhat higher concentration of individual earnings about the general average and T able 20.— Percentage Distribution o f Workers in M otor-Vehicle and A llied1 Industries, by Average Hourly Earnings and Geographic Division, M ay-June 1940 Hourly earnings (in cents) TTtuW 37 fi 37,5 ftnd under 42.5 42.5 and under 47.5__ . . 47.5 and under 52.5__ 52.5 and under 57.5 57.5 and under 62.5... 62.5 ftnd under fi7.5 _ 67.5 and under 72.5 72.5 and under 77.5......... *7 K ttuu onH H Tirfoi* 8 9 f\ 4*7 4*o unuer 82.5 and under 87.5-------87.5 and under 92.5.......... 92.5 and under 97.5__ 97.5 and under 102.5__ 102.5 and under 107.5----107.5 and under 112.5----112.5 and under 117.5___ East All di North visions Central 0.3 .3 .4 .6 1.0 1.3 2.6 2.3 5.8 7.5 10.1 14.0 11.4 15.1 9.8 6.3 4.7 0.1 .2 .3 .4 .6 .9 2.3 2.0 5.2 7.1 9.4 14.1 11.3 16.1 10.7 6.8 5.1 Other divi sions 1.3 .9 1.0 1.7 3.2 3.3 4.1 4.0 8 .6 9.3 13.7 13.5 11.8 9.8 5.2 4.1 2.3 Hourly earnings (in cents) East Other All di North divi visions Central sions 117.5 and under 122.5___ 122.5 and under 127.5....... 127.5 and under 132.5 132.5 and under 137.5 137.5 and under 142.5 142.5 and under 152.5 152.5 and under 162.5 162.5 and under 172.5 172.5 and over__________ 2.5 1.2 Total...................... 1.1 .4 .2 .2 .1 .1 .2 .1 .1 2.7 1.4 1.0 .7 .5 .6 .2 .1 .2 100.0 100.0 100.0 N u m b e r of plants._ 308 197 Number of workers 421,543 354,017 Average hourly earnings. $0,941 $0,958 Average weekly hours. 37.1 37.0 Average weekly earnings. $34.93 $35.46 111 67,526 $0,852 37.7 $32.13 .8 .6 .5 .5 .1 t As classified by Census. Includes automotive-stamping and automotive-electrical-equipment plants; excludes establishments producing passenger trailers, s Less than a tenth of 1 percent. 44 W AGE STRUCTURE, M O TO R-VEH ICLE IN D U STRY from the fact that the regional difference is smaller than that found among plants included in the broader definition of the industry. Despite the greater homogeneity of this second group of plants, the elements which explain variations in earnings are too complex to justify detailed analysis on such a broad basis, and any adequate discussion necessitates separate treatment of the two broad divisions of the industry. It may also be noted that, quite apart from these varia tions resulting from differences in definition of the industry, the mere combination of the automobile and automotive-parts divisions of the industry tends to obscure certain characteristics of both. The dif ference in average earnings, for example, between these two divisions, each treated as a whole, is more than 12 cents. During the pay-roll period selected for study, employees in the entire motor-vehicle industry worked an average of 37.2 hours per week. Since the production of automobiles is a seasonal industry, the number of hours worked in a particular week or pay-roll period is not highly significant. The effect of varying the definition of the industry noted in connection with hourly earnings is apparent here also. Hours in the industry as defined in table 20 were shorter by one-tenth of an hour. Average weekly earnings showed a slight dif ference in the opposite direction, and amounted to $34.26 and $34.93, respectively, for the broader and narrower definitions of the industry. Annual Earnings o f M ichigan M otor •Vehicle Workers Data on the annual earnings of approximately half the Michigan wage earners included in the Bureau’s survey of the motor-vehicle industry were made available to the Bureau of Labor Statistics by the State Unemployment Compensation Commission for the year ended June 30, 1940. An average of $1,562 was paid by motor-vehicle plants to the 153,682 workers whose records were selected at random for this tabulation (table 21). The 120,400 employees in the auto mobile division of the industry earned an average of $1,589, while the corresponding figure for 33,282 workers in parts plants was about 8 percent less or $1,464. The average hourly earnings of Michigan workers in these two divisions of the industry during May and June 1940 also differed by almost 8 percent. It appears that the automobile and parts plants provided approximately equal amounts of employment for these workers. These averages are affected by several factors which must be eliminated before any adequate analysis of annual earnings can be made. The form in which the data are available does not permit all the statistical refinements required for precise determinations, but two important factors can be isolated. In the first place, about 8 percent (12,568) of this group were with out earnings from the motor-vehicle industry during one, two, or W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY 45 three quarters of the year. As might be expected, the average amxual earnings of the remaining 141,114 workers who were employed for at least a part of each of the four quarters were somewhat higher; they amounted to $1,625 for the industry as a whole and $1,654 and $1,520, respectively, for the automobile and parts divisions. The irregularly employed workers constituted a relatively small proportion of the total and were made up primarily of the industry’s reserve labor force, workers who transferred from one industry to another during the period, and wage earners who entered or left the Michigan labor market during the year. In the second place, these data on earnings take no account of amounts received as a result of employment in industries other than motor vehicles. Information is available on such earnings as were received from industries covered by the Michigan unemploymentcompensation law. However, the total amounts involved are very small. In fact, the average for the 153,682 workers as a group would be increased by only $34, that is to $1,596, if all such earnings were included. This result, taken by itself, is misleading because these earnings from other covered employment were not, of course, dis tributed among the entire group of motor-vehicle workers. They were divided among only 12,128 workers (about 8 percent of the total) and averaged $428 each for the particular group affected (table 22). It is not possible to estimate the amounts received by these workers from sources other than covered employment within the State. It appears likely that the average for the whole body of motor-vehicle workers would be affected but slightly by the inclusion of unreported income. It is certain that substantial amounts were received by some individual workers on account of public employment, domestic serv ice, agricultural employment, work outside the State, and other employment not covered by the law. Income received from annui ties, investments, insurance policies, and similar sources was, of course, not reported. For these reasons, it is important to avoid interpreting any of these data on annual earnings as indexes of total earnings, total income, or levels of living. Despite the presence of complicating factors, the tendency for individual earnings to concentrate about the general average is apparent. Well over half the 153,682 employees received between $1,200 and $1,800 in the form of wages from the motor-vehicle indus try. As in the case of hourly earnings, this concentration is more marked in the automobile division of the industry than it is among workers in parts plants. It should be noted that the group of workers for whom annual earnings are known is somewhat heterogeneous, since it includes those employed in various types and sizes of plants, resi dents of large and small places, and workers of both sexes. Women constituted a negligible proportion of total employees in automobile 46 W AGE STRU CTU RE, M O TO R-VEH ICLE IN D U STRY plants, but approximately a fifth of the workers in parts plants. These factors tend, at least in part, to decrease the concentration of annual earnings about the average. T able 21.— Percentage Distribution o f Michigan Workers, by Average Annual Earnings from M otor’ Vehicle Employment, Year Ended June 30, 19401 Workers employed at any time during year, in— Annual earnings Under $100................................................... $100 and under $200..................................... $200 and under $300..................................... $300 and under $400....... ............................. $400 and under $500..................................... $500 and under $600..................................... $600 and under $700................................... . $700 and under $800....... ............................. $800 and under $900..................................... $900 and under $1,000.................................. $1,000 and under $1,100...... ................... . $1,100 and under $1,200............................... $1,200 and under $1,300............................... $1,300 and under $1,400............................... $1,400 and under $1,500..................... ......... $1,500 and under $1,600............................... $1,600 and under $1,700............................... $1,700 and under $1,800............................... $1,800 and under $1,900............................... $1,900 and under $2,000............................... $2,000 and under $2,100............................... $2,100 and under $2,200............................... $2,200 and under $2,300............................... $2,300 and under $2.400............................... $2,400 and under $2,500............................... $2,500 and under $2,600............................... $2,600 and under $2,700............................... $2,700 and under $2,800............................... $2,800 and under $2,900............................... $2,900 and under $3,000............................... $3,000 and over............................................ Motorvehicle industry 1.4 .3 .5 .6 .6 .6 .8 1.0 1.6 2.6 4.1 4.9 5.8 7.9 9.0 9.7 11.3 10.2 7.5 5.0 3.5 2.6 2.0 1.6 1.2 1.1 .8 .6 .4 .3 .5 Workers employed during all four quarters of year, in— Auto Automo Motormobile tive-parts vehicle division division industry 0.5 .2 .5 .6 .6 .5 .7 .8 1.4 2.3 3.8 4.6 5.7 8.2 9.4 10.1 11.8 10.9 7.9 5.2 3.5 2.7 2.0 1.5 1.2 1.0 .8 .5 .4 .2 .5 5.0 .5 .5 .6 .7 1.0 1.4 1.8 2.4 3.9 5.2 5.8 6.0 6.8 7.5 8.0 9.4 7.9 5.9 4.3 3.3 2.3 1.9 1.8 1.5 1.5 .9 .8 .5 .3 .6 1.3 0) .1 .1 .2 .2 .4 .5 1.0 1.8 3.2 4.5 5.8 8.2 9.5 10.4 12.3 11.2 8.1 5.4 3.8 2.8 2.2 1.7 1.3 1.2 .9 .6 4 .3 .6 Auto Automo mobile tive-parts division division 0.4 0) .1 .1 .1 .1 .2 .3 .7 1.4 2.7 4.1 5.7 8.5 10.0 10.9 12.8 11.9 8.6 5.7 3.8 2.9 2.2 1.6 1.3 1.1 .9 .6 .4 .3 .6 4.8 0) .1 .2 .3 .5 .9 1.2 2.0 3.4 5.0 5.7 6.1 7.1 7.9 8.6 10.3 8.4 6.3 4.6 3.6 2.5 2.1 1.9 1.6 1.6 1.0 .9 .5 .3 .6 Total.................................................. 100.0 100.0 100.0 100.0 100.0 100.0 Number of workers..................................... Average annual earnings from motor-ve hicle employment................................... 153,682 120,400 33,282 141,114 110,202 30,912 $1,562 $1,589 $1,464 $1,625 $1,654 $1,520 « Data from records of the Michigan Unemployment Compensation Commission. T able 22.— Average Annual Earnings from all Covered Employment o f Workers in Michigan Motor•Vehicle Plants, by Source o f Earnings, Year Ended June 30, 19401 Average annual earnings received from— Classification of workers by source of earnings and length of Number of workers employment All sources MotorOther vehicle industry industries All workers_______________ ____ ____ _____ _______________ 153,682 $1.596 $1,562 $34 Earnings from motor-vehicle industry only....................... ...... Earnings from motor-vehicle and other covered industries......... Earnings in all four quarters.—.......... .............................. Earnings from mo tor-vehicle industry only........ ........ Earnings from motor-vehicle and other covered in dustries....................................................................... Earnings in less than four quarters..................................... Earnings from motor-vehicle industry o n ly ............... Earnings from motor-vehicle and other covered in dustries........................................................................ 141,554 12,128 141,114 130,835 1,609 1,442 1,659 1,667 1,609 1,014 1,625 1,667 428 34 10,279 12,568 10,719 1.556 888 901 1,089 857 901 467 31 1,849 809 601 208 ' Data from records of the Michigan Unemployment Compensation Commission. 47 W AG E STRU CTU RE, M O TO R-VEH ICLE IN D U STRY Not quite 4 percent of the Michigan motor-vehicle workers received $2,500 or more from the industry during the year 1939-40. The slightly larger proportions of workers in these higher earnings brackets reported by parts plants is probably not significant. The experimental and development work in the large automobile plants is ordinarily done by special research departments, and the employees of such departments were excluded by definition from the Bureau’s survey. On the other hand, experimental work in parts plants, which are generally smaller, may sometimes be done by specialized tool-makers or machinists designated on pay rolls as wage earners and, therefore, included in the survey. To the extent that this occurred, the upper ends of these distributions are not strictly comparable. T able 23.— Distribution o f Workers with Compensable Employment in Michigan M otor•Vehicle Plants Only, by Annual Earnings, Year Ended June 30, 1940 1 Percent of workers employed— Annual earnings U nder $500 _ _ __ $500 and under $600 $*>00 ftnd under $700 _ ____ $700 and under $800 $800 and under $000 _ _ __ _ $900 and nndftr $1,000 ___ $1,000 and nndftr $1,100. T__ __ $1,100 and nndftr $1,200 _ _ $1 ,*?O0 and nndftr $1,300 _ $1,300 and nndftr $1,400 _____ $1,41)0 and nndftr $1 ,600___ _ _ fip1i,U KU flrt v and uUU nndor UUUvi $1 000 $1,000 and nndftr $1,700 _ _ _ Ha ftOO $ljfUU arid oiiu iiti UJiU uil* $1 (pi)Ow,••••.. $1,800 and nndftr $1,900 $1,900 and under $2.000............. At any time dur ing year 1.4 .4 .7 .9 1.4 2.4 3.9 4.8 5.7 8.0 9.3 10.1 1L 8 10.7 7! 9 5.2 During Percent of workers employed— Annual earnings At any During time dur all 4 ing year quarters 8114 quarters 0.1 .1 .2 .4 .7 1.6 2.9 $2,000 and $2,100 and $2,200 and $2,300 and $2,400 and $2,600 and $2,600 and n n d «r nndftr nndftr nndftr nndftr nndftr nndftr $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 4.3 $2,700 and under $2,800 5.7 8.3 9.8 10.7 12 ! 8 11.6 $2,800 and nndftr $2,900 $2,900 and nndftr $3,000 $3,000 and n v«r _. _ &5 5.7 3.6 2.8 _ _ 2.1 1.6 1,3 1.2 .9 _ _ .6 .4 .3 3.9 3.0 2.2 1.8 1.4 1.3 1.0 .7 .4 .3 .6 .6 100.0 100.0 . 141,554 Average annual earnings........ $1,609 130,835 T o ta l ____ N u m ber o f w orkers _ $1,667 * Data from records of the Michigan Unemployment Compensation Commission. Workers with earn ings from any covered industry other than motor vehicles are excluded Approximately 4 percent of the entire group showed annual earnings below $500; for workers employed for at least a part of each of the four quarters, the corresponding proportion was less than 2 percent. This latter group was probably made up largely of workers whose employment was intermittent or confined to peak periods. Since the 4 percent shown for the group as a whole presumably involved a sub stantial proportion of workers who were not in the Michigan labor market during the entire period, little significance can be attached to the figure. Earnings from other industries.— Slightly less than 8 percent (12,128) of the workers for whom data on annual earnings were tabulated received earnings from other covered employment in addition to the amounts paid them by motor-vehicle plants (table 22). The average earnings of this group from all covered employment were $1,442, or 48 W AGE STRU CTU RE , M O TO R-VEH ICLE IN D U STRY more than 10 percent below the average ($1,609) for the 141,554 workers whose entire earnings from covered employment came from the motor-vehicle industry. Of this average of $1,442, about 70 per cent ($1,014) was paid by the motor-vehicle industry. Five-sixths (10,279) of the workers who reported earnings from other industries (12,128 workers) received some earnings from covered em ployment in the State during each of the four quarters of the year. These 10,279 employees earned $1,556, of which $1,089, or about 70 percent, was in the form of wages paid by motor-vehicle plants. The total earnings of the remaining 1,849, that is those who were not employed in covered industries during one or more of the four quarters, amounted to $809, of which nearly three-fourths ($601) was received from the motor-vehicle industry. Earnings oj motor-vehicle workers without other covered employment.— It is clear from the foregoing data that employment in other covered industries within the State was relatively unimportant among workers officially recorded by the Michigan Unemployment Compensation Commission as attached to the motor-vehicle industry. Nevertheless, the further analysis of the level of earnings in the industry necessitates elimination of this relatively small group of workers who were depend ent in part on earnings in other industries. Ideally, those workers who received earnings from uncovered employment should also be eliminated, but this is not possible on the basis of the data available. It is unlikely, however, that the inclusion of the latter group results in any serious error, so long as the data are not interpreted as significant in terms of total income or standards of living. Approximately 92 percent (141,554) of the workers whose annual earnings were tabulated received their entire income from covered employment in the form of wages paid by the motor-vehicle industry. This group, whose annual earnings averaged $1,609, may be regarded as representative of the industry’s regular labor force. The earnings of more than two-fifths of this group were within a range of $200 above and below the general average, and the distribution shows a high degree of symmetry; for example, the proportion of workers whose earnings fell in the $500 interval between $1,100 and $1,600 is almost equal to those in the $500 range between $1,600 and $2,100 (table 23). The earnings of about 2.5 percent of the regular labor force of the motor-vehicle industry in Michigan amounted to less than $700. This group is made up principally of those who, for one reason or another, worked for only part of the year. This is apparent from the fact that less than half of 1 percent of the 130,835 workers employed in the industry for at least a part of each quarter earned less than $700. As might be expected, this latter group, who worked during all four quarters, showed an even greater concentration of individual earnings around the average of $1,667 per year. W AG E STRU CTU RE , M O TO R-VEH ICLE IN D U STRY 49 The average ($1,667) for these 130,835 more or less regularly em ployed workers falls short of the theoretical full-time earnings of $2,015.50 14 by about 17 percent. The time lost undoubtedly con sisted of a combination of short days, weeks of less than 40 hours, and lay-offs, but the data available do not provide any basis for a precise statement on the relative importance of these factors. The usual seasonal decline in employment during July and August must, however, account for the major proportion of the net amount of lost time. The remaining 8 percent (10,719 workers) who received their entire earnings from the motor-vehicle industry, but who were employed during three quarters of the year or less, earned an average of $901. Some of these workers undoubtedly entered or left the Michigan labor market during the year, while others may have been employed during a portion of the year in an industry not covered by the unemployment-compensation law. It is likely that a signifi cant proportion of the group constituted a part of the industry's reserve labor supply and were workers employed in motor-vehicle plants intermittently or only during periods of maximum operation. It should be noted, however, that the group reported as employed during three quarters or less by the motor-vehicle plants of Michigan did not represent the entire labor reserve of this industry. Although the proportion cannot be accurately estimated, a part of the 12,128 workers (see table 22) who received earnings from other covered industries as well as from motor-vehicle plants may be regarded as part of this reserve. That this is the case is apparent from the fact that, as already pointed out, about 70 percent of the reported earnings of the 12,128 workers were received from the motor-vehicle industry, irrespective of the number of quarters during which they were employed within the State. u Theoretical full-time annual earnings were calculated by multiplying the total normal hours (2,060) by the average hourly earnings rate resulting from the Bureau’s survey of May and June 1940.