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0.5 percent of payrolls beginning July 1, 1959, and 1 percent beginning July 1, 1960.
for the jets, to be put into service by United in mid-September, to be manned by three pilotqualified officers. Other lines have agreed to operate their jets with three pilots and a flight engineer.15 A United Air Lines spokesman said their ability to limit their cockpit crews to three stems from the fact that all flight engineers scheduled to serve on jets have taken pilot training since 1954.
Chemicals. On May 4, the E. I. du Pont de Nemours & Co. announced immediate general pay increases for about 5,000 employees at its Savannah River plant near Aiken, S.C. Increases ranged from 9 to 11 cents an hour for hourly paid workers and from $3 to $4.50 a week for salaried employees.
Wage increases amounting to approximately 5 percent for about 2,900 employees of Merck & Co., Inc., in Pennsylvania and New Jersey were agreed to in early May by members of the Oil, Chemical and Atomic Workers International Union. The increases reportedly amounted to about 10 cents an hour for most workers; in addition the company agreed to bring workers in the collective bargaining units under the company's stock purchase and savings plan approved at a stockholders meeting in late April, under which it will contribute an amount equal to 50 percent of the sum saved by employees.
Apparel. A 7.5-cent-an-hour wage increase, effective August 31, 1959, for about 100,000 employees—their first general wage increase since 1956— was negotiated on May 28 by representatives of the Amalgamated Clothing Workers and leading manufacturers of shirts, pajamas, and other cotton garments. The settlement also included a seventh paid holiday and an increase from 5 to 5.5 percent in employer contributions to welfare and insurance funds. Negotiations were conducted under a reopening clause of a 3-year nationwide agreement expiring June 1, 1961.16
About 50,000 workers in Connecticut, New York, New Jersey, and Pennslyvania employed by manufacturers of women and children's coats and suits were affected by a 3-year contract agreed to by the International Ladies' Garment Workers' Union and employer representatives on May 4. Wages were not altered, but the provision for reopening on this issue should the Consumer Price Index rise by 5 percent from the time of the workers' most recent increase (in December 1957) was continued. Effective June 1, 1959, the agreement extends to pieceworkers the provision for paying time and one-half for work after 7 hours, already in effect for timeworkers. The 61/2 holidays currently paid to timeworkers were extended to pieceworkers. Beginning June 1, 1960, 312 of these holidays will be guaranteed at full holiday pay to both piece and time workers and by June 1, 1961, all 612 holidays will be guaranteed. (Under the previous agreement, timeworkers received less than full holiday pay if they did not work the full normal hours during the rest of the holiday week.) The agreement established a severance pay fund into which employers will pay
Stone, Clay, and Glass Products. A work stoppage in effect since mid-April was ended on May 8 when representatives of the International Brotherhood of Operative Potters and the U.S. Potters Association signed a 19-month, 9-cent-anhour package contract for about 5,700 workers in Ohio, Pennsylvania, and West Virginia. It called for an immediate 6-cent-an-hour increase plus provision for three more paid holidays (total five). Revisions were also made in the vacation, arbitration, and seniority provisions.
The settlement was preceded by an agreement reached on April 25 between the same union and five chinaware firms (four of which were formerly represented by the Potters Association) in Ohio, Pennsylvania, and New York. This agreementaffecting about 2,500 workers—also provided 6 cents in wages and two and a half additional paid holidays, for a total of five.
Other Manufacturing. Agreement to end a 3week strike at U.S. Rubber Co. was reached on May 1 between the company and the United Rubber Workers. The settlement, affecting about 26,000 employees, called for changes in pensions, insurance, and supplemental unemployment bene
16 See, for example, Monthly Labor Review, February 1959, p. 182.
16 See Monthly Labor Review, October 1958, p. 1160.
vacation after 10 years. The contract affected about 3,000 workers.
About 2,400 printing pressmen represented by Local 2 of the Printing Pressmen union and employed by 11 newspapers that are members of the Publishers Association of New York City ratified a 2-year, $7 a week package contract offer on May 8. The settlement provided $4 retroactive to December 8, 1958, when the previous contract expired and an additional $3 effective December 8, 1959; the union had an option of allocating the increase between wages and welfare benefits. Negotiations between the same employer group and Local 6 of the International Typographical Union were still stalemated over the issue of local type resetting of display advertisements received by the papers in plate or mat form.
fits. Minimum pension benefits, effective July 1, 1959, were raised to $2.10 a month for each year of service (compared with $1.80 a month for up to 30 years under the previous contract) and minimum disability retirement levels were raised from $80 to $100 a month. Pensions for those retired since July 1, 1950, were raised to a minimum of $2 a month for each year of service for those receiving less than this amount. Vesting rights at age 40 after 10 years service was also added, and some revisions in the insurance plan were made. The pension and insurance agreement runs until July 1, 1964. Changes in the working agreement—to be in effect until June 1, 1961—included an increase in the weekly maximum supplemental unemployment benefits from $25 to $30 for employees with no dependents. Strikes continued at Firestone and B. F. Goodrich Rubber Companies; the union had reached contract terms with Goodyear Tire and Rubber Co. in April.17 Wages were not an issue in any of these situations.
In Milwaukee, Wis., members of the Brewery Workers union ratified a 2-year contract with five breweries calling for a 10-cent-an-hour pay increase, effective June 1, 1959, for about 6,000 workers. At three major firms, pay advances in the second contract year will amount to 10 cents an hour. At two smaller breweries, 5-cent-an-hour wage increases in 1960 will be supplemented by an additional 5 cents if sales increase 10 percent by that time. Other contract terms (at all five breweries) include liberalized vacation benefits, another paid holiday (total 101/2), a 13-cent-an-hour employer contribution to the pension fund (instead of 10 cents), and increased sickness and accident benefits.
One of the first major settlements to be negotiated this year in the Pacific Northwest lumber industry was reached in late May between the Georgia-Pacific Corp. and the International Woodworkers union. The tentative agreement, subject to membership ratification, called for a package increase of 20.5 cents an hour over a 2-year period, including a provision for 3 weeks'
Hearings of the Senate Select Committee on Improper Activities in the Labor or Management Field revealed evidence that some New York newspaper distributors had made payoffs totaling more than $400,000 to officials of the Newspaper and Mail Deliverers Union (Ind.). Executives of two newspapers—The New York Times and the New York Daily Mirror—also testified that their papers had paid tribute to a convicted labor extortionist and a Longshoremen's union official to insure delivery of their Sunday supplements. Union officials ether denied or refused to tell the committee whether they had accepted payments from the newspapers or the distributors.
The National Labor Relations Board will exercise jurisdiction over the hotel industry in order to conform with a U.S. Supreme Court finding that the total exclusion of the industry was contrary to the intent of Congress. The Board's jurisdiction will be applicable to nonresidential hotels or motels with a gross annual business of at least $500,000.
17 See Monthly Labor Review, June 1959, p. 675.
Pension Funds and Economic Freedom. By Rob
ert Tilove. New York, Fund for the Re
public, 1959. 91 pp. Single copies free. This report is indicative of growing public interest in and concern with the impact of private pension plans on the national economy and economic freedom. The report does not attempt to assess all ways in which pension funds affect eco nomic freedom; rather, it deals chiefly with two issues: (1) whether investment by self-insured pension funds in common stock serves to concentrate economic power in the hands of a few, and (2) whether pension plans restrict labor mobility.
At the end of 1957, self-insured pension funds held about $4.8 billion in common stocks as compared to $0.8 billion in 1951, and Mr. Tilove estimates that by 1965 they may hold as much as $20 billion. Mr. Tilove concludes that although the aggregate amount of self-insured pension fund investments in common stock implies a potential for concentration of economic power by financial institutions (banks control investments under most self-insured pension funds), there is no real evidence” that this has come about, or will develop into a national problem. The author points out that, in total, self-insured pension funds hold only a very small part of the total value of all common stock (less than 5 percent), and even in the issues in which they concentrate they hold negligible parts of the whole.
Mr. Tilove also examines all institutional holdings, such as those of banks, life insurance companies, and self-insured pension funds. Institutional investors account for the major portion of total net purchases of common stock-estimated
at 60 percent in 1954—and they hold about 10 percent of all common stock. Although the potential for economic control is present, the great number and diversity of financial institutions would counteract any significant realization of this potential. With regard to control of particular corporations, the author maintains that financial institutions are not anxious to utilize this potential since (1) they are primarily interested in flexibility and return on investment and (2) they fear judicial and statutory restraints.
The other major problem that the report deals with relates to pension plans and labor mobility. The author concludes that, in general, private pension plans, in the form in which they now exist, tend to restrict labor mobility (through loss of pension credits when changing jobs) and the hiring of older workers, but the strength or influence of these factors is in doubt. They are not important at younger ages when mobility is high, and are subordinate to stronger factors (seniority and community roots) at the higher ages when they should be important. In addition, pension plans may contain provisions which increase mobility and provide the worker with a "margin of security”-vesting, early retirement, and transfer of pension credits as in multiemployer plans. The author feels that the direction in the future will be toward mobility through increased vesting of pension credits.
This report is a valuable addition to the literature on pensions and should provoke considerable discussion and controversy. It is not a comprehensive report, but it does offer a preliminary analysis and appraisal of existing facts about the problems studied. It is important to emphasize that the facts and studies on which the author bases his conclusions are still inadequate, although substantial gains have been made in the past few years, and this lends importance to the need for further research in all phases of pension plans. At this writing, the prospects for a significant growth in the store of information available on pension plans are bright; information relating to reserves, investments, contributions, benefits, and related data may become available through the data filed with the Department of Labor under the new Welfare and Pension Plans Disclosure Act. -WALTER W. KOLODRUBETZ Division of Wages and Industrial Relations Bureau of Labor Statistics The Labor Force Under Changing Income and
Employment. By Clarence D. Long. New York, National Bureau of Economic Research, Inc., 1958. xxiv, 440 pp. (General
( Series, 65.) $10, Princeton University Press,
Princeton, N.J. Dr. Long, Professor of Economics at the Johns Hopkins University, has had extensive experience in the analysis and uses of labor force data both in government and private research organizations. His new book reflects this experience and fills gaps in our "knowledge of labor force behavior and at the same time (seeks) some unified explanation for that behavior.” The study is an empirical investigation in which the author uses a vast amount of statistics from the censuses of population of the United States, Great Britain, Canada, New Zealand, and Germany for periods ranging up to a century or longer.
The author centers his analysis in three questions: (1) How, and to what extent do changes in income and employment influence labor force participation? (2) Are the income and employment influences sufficiently strong to stand out over other possible influences? (3) Can labor force behavior be explained by any other possible single factor, or does the explanation lie in some combination of social, demographic, and economic forces ?
The basic method used by Dr. Long in his analyses involves detailed correlation of labor force participation rates with other relevant economic and social data. These cover such characteristics as age, sex, color, nativity, marriage, military status, child care responsibility of women, rural and urban residence, the density of population and size of cities, income, school attendance, educational attainment, employment status of wife, hours of work, length of workweek, benefits under private retirement systems, and social security. Comparisons are made among the different nations as of one time, as well as over a period of time within the same nation. For the United States, analyses are also made of 38 cities; this analysis extends the work done by Senator Paul Douglas some 25 years ago. To assure comparability of the data among nations and over time, the author standardizes the various series used in his study.
Perhaps the outstanding single conclusion reached by the author is that “the overall labor force participation rate [after standardization for urban-rural residence, age, etc.) has been rather impressively stable from one high employment census year to another.” This holds true for the United States since 1890, at least, and for similar lengthy periods in the other four countries studied. For individual cities in the United States, the same type of stability in the overall labor force participation has not been shown. With regard to cities, the author finds, as was discovered by Paul Douglas, that the changes in the proportion of a city's population in the labor force (i.e., its participation rate) appear to be inversely associated with changes in average income per equivalent adult male worker.
Statistically, the stability of the overall labor force participation rate is attributable to offsetting trends in the labor force behavior of men and women. In all the five countries studied, the female labor force participation rate has increased over most of the decades since 1890, while the rate for males declined during this period. The declines for males occurred simultaneously with increases in income for adult male workers and do not appear to have been affected by changes in the age composition of the male population. The largest decline generally occurred among men age 65 and over, with the next largest decrease shown by young men under 25. There was also a drop in the participation rate for males 25 to 64 in almost all of the countries studied.
The author's analysis also shows that the data do not support the theory often held that net additions to the labor force accompany a depression. To the contrary, the statistics show that during depressions, the number of people leaving the labor force is greater than those "driven into it by joblessness of family breadwinners."
Professor Long raises the question as to whether the rather marked stability in the overall participation rates among the five countries studied could not be "due to some systematic tendency for the internal changes to offset each other.” He finds some statistical indications to support this thesis. The hypothesis is advanced that the increased participation rate among women may have "forced"
young and elderly males from the labor force and to some extent, the women may have been drawn into the labor force because of the "vacuum left by the exodus of males for other reasons."
The author recognizes that he has not found complete answers to the questions he set for himself. In part, this is attributable, as the author recognizes, to the fact that his analysis did not take into account all the demographic, economic, and social factors (some of which are not measurable statistically) which could have influenced labor force behavior. It probably would have been desirable if more attention could have been given to the effect on labor participation rates of the changes in industrial patterns and on the introduction of the mechanized and assembly line type of operations, both in manufacturing and nonmanufacturing activities. These changes could have had an important bearing on the decline in the male labor force participation rate and the increase in the female rate. It is not easy to answer the questions posed by the author in view of the magnitude of the problem and the complexity of the human motivation reflected in labor force behavior. He has, nonetheless, made a contribution to the knowledge of the dynamics of the labor force as a result of his detailed and painstaking statistical analysis.
-Louis LEVINE Office of Program Review and Analysis
Bureau of Employment Security
other. There is a good bibliography and index, and the material is well organized for ready use.
The book is oriented to the problems and issues most usually perceived by those in the private insurance field. Nevertheless, the author is not bound by all the traditional ideologies of the private insurance profession. He might shock the private insurance advocates by his conclusion supporting a uniform tax instead of individualemployer experience rating. He urges the private insurance carriers, in the "interest of good public relations ... to cooperate wholeheartedly in protecting the State fund against [adverse] selection.”
In this reviewer's opinion, Osborn does go off the deep end, however, when he concludes that "stronger support for coordination of disability insurance with workmen's compensation is provided by the almost unanimously agreed upon success of the administration of the New York Disability Benefits Law. No major administrative changes have been found necessary, nor has there been any serious criticism of the law's administration.” A major reason for the lack of objective criticism of the New York law is the failure or inability to obtain detailed information on how the law really works. Therefore, it is hardly reasonable to conclude that lack of criticism clearly establishes the validity of the workmen's compensation approach. Osborn fails to recognize the need for a complete and objective review of the entire New York law.
Insofar as Osborn establishes the criteria that temporary disability insurance should be administered by an existing agency and one experienced in dealing with disabled claimants, his argument leads as well to the conclusion that it should be administered in conjunction with the permanenttotal disability insurance provisions in the Federal social security program. He touches very briefly on this issue in a concluding section dealing generally with arguments for and against Federal action. A careful evaluation of the possible relationship between temporary and permanent disability insurance is most important as a likely next step in the evolution of social insurance.
-WILBUR J. COHEN Professor of Public Welfare Administration
University of Michigan
Compulsory Temporary Disability Insurance in
the United States. By Grant M. Osborn.
1958. 232 pp. $5. Grant Osborn has compiled a useful report on the experience and problems which have arisen with cash sickness benefits, here and abroad.
Professor Osborn analyzes the provisions of the five operative United States laws-Rhode Island, California, New Jersey, New York, and railroads—as well as the voluntary plans. He touches on the major controversial issues including the differences between the private insurance companies and employer attitudes on the one hand, and the views of labor organizations on the