    [United States Department of Labor Fifty-Second Annual Report, Fiscal Year 1964]
    [From the U.S. Government Publishing Office, www.gpo.gov]

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    Fifty-second Annual Report
    UNITED STATES
    DEPARTMENT OF LABOR
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    Fiscal Year 1964
    4
    Fifty ^second
    Annual Report
    UNITED STATES
    DEPARTMENT OF LABOR
    W. Willard Wirtz, Secretary
    For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Price 65 cents (Paper Cover)
    3 1336 05750 2974
    UNITED STATES DEPARTMENT OF LABOR
    Secretary of Labor.............................................. W. Willard Wirtz
    Executive Assistant	to the Secretary....................... N. Thompson Powers 1
    Special Assistant	to	the	Secretary for	Economic Affairs.... Stanley Ruttenberg
    Special Assistant	to	the	Secretary for	Legislative	Affairs. Samuel V. Merrick
    Special Assistant	to	the	Secretary......................... Arthur A. Chapin 1 2
    Special Consultant to the Secretary on Youth Employment..... India Edwards 3
    Director, Office of Information, Publications, and Reports..John W. Leslie
    Under Secretary ................................................John F. Henning
    Deputy Under Secretary...................................... Millard Cass
    Special Assistant to the Under Secretary....................Jack Howard
    Assistant to the Under Secretary............................ Robert K. Salyers
    Manpower Administrator........................................John C. Donovan 4
    Executive Officer........................................... Samuel Ganz
    Deputy Administrator for Planning, Research, and Evaluation
    and Director, Office of Manpower, Automation, and Training . Seymour L. Wolfbein Deputy Administrator for Operations and Administrator,
    Bureau of Employment Security............................. Robert C. Goodwin
    Administrator, Bureau of Apprenticeship and Training........ Edw. E. Goshen
    Assistant Secretary for Labor-Management Relations..............James J. Reynolds
    Deputy Assistant Secretary.................................. Nelson M. Bortz
    Administrator, Labor-Management Services Administration.... James J. Reynolds 5 * Director, Office of Labor-Management and Welfare-Pension
    Reports................................................... Frank M. Kleiler s
    Director, Office of Veterans’ Reemployment Rights........... Hugh W. Bradley7
    Director, Office of Federal Employee-Management Relations.... Louis S. Wallerstein, Acting
    Administrator, Wage and Hour and Public Contracts Divisions.. Clarence T. Lundquist Assistant Secretary for International Affairs................... George L-P Weaver
    Deputy Assistant Secretary and Administrator, Bureau of International Labor Affairs................................ Harry Weiss
    Esther Peterson Morris Weisz
    Mary Dublin Keyserling 8 Arthur W. Motley William McCauley Theodore M. Schwartz Daniel Patrick Moynihan Philip Arnow Ewan Clague Charles Donahue Kenneth C. Robertson 9 Leo R. Werts V. S. Hudson
    Edward J. McVeigh Margaret F. Brickett
    Assistant Secretary for Labor Standards..........................
    Deputy Assistant Secretary...................................
    Director, Women’s Bureau.....................................
    Director, Bureau of Labor Standards..........................
    Director, Bureau of Employees’ Compensation .................
    Chairman, Employees’ Compensation Appeals Board..............
    Assistant Secretary for Policy Planning and Research.............
    Deputy Assistant Secretary...................................
    Commissioner of Labor Statistics.............................
    Solicitor........................................................
    Deputy Solicitor.............................................
    Administrative Assistant Secretary...............................
    Deputy Administrative Assistant Secretary....................
    Assistant Administrative Assistant Secretary.................
    Librarian..................................................
    1 Appointed Apr. 6, 1964.
    2 Appointed July 3,1963.
    8 Appointed Mar. 24,1964.
    « Appointed to this position Apr. 6,1964, from position of Special Assistant to the Secretary.
    8 The Labor-Management Services Administration was established Aug. 21,1963, and James J. Reynolds was designated Administrator in addition to his responsibilities as Assistant Secretary for Labor-Management Relations.	,,, , ,	. , .,
    « The Office of Labor-Management and Welfare-Pension Reports was established as a component of the Labor-Management Services Administration Aug. 21,1963, and Frank M. Kleiler, formerly Director of the Office of Welfare and Pension Reports, was designated Director.
    i The Bureau of Veterans’ Reemployment Rights was redesignated Office of Veterans’ Reemployment Rights and transferred to the Labor-Management Services Administration Mar. 13, 1964.
    8 Appointed Apr. 13, 1964.
    • Appointed Oct. 13, 1963.
    UNITED STATES DEPARTMENT OF LABOR ANNUAL REPORT, 1964
    CONTENTS
    Page
    Report of the Secretary of Labor............................. 3
    APPENDICES
    Reports of the Office of the Secretary
    Administrative Assistant Secretary.......................... 11
    Director of Information, Publications, and Reports...... 19
    Solicitor of Labor...................................... 21
    Bureau Reports
    Manpower Administration...................................... 33
    Bureau of Apprenticeship and Training............... 39
    Bureau of Employment Security....................... 45
    Office of Manpower, Automation, and Training........ 83
    Labor-Management Services Administration................ 95
    Bureau of Employees’ Compensation........................ Ill
    Employees’ Compensation Appeals Board................... 123
    Bureau of International Labor Affairs.................... 127
    Bureau of Labor Standards................................ 135
    Bureau of Labor Statistics............................... 151
    Wage and Hour and Public Contracts Divisions........... 171
    Women’s Bureau........................................... 217
    iii
    REPORT OF THE SECRETARY OF LABOR
    REPORT OF THE SECRETARY OF LABOR
    Nineteen hundred and sixty-four was a year of decisive events in American social progress. Momentous statutory commitments were made to provide every citizen with economic opportunity and full citizenship.
    When President Lyndon B. Johnson declared an “unconditional war against poverty,” he was expressing the national will to solve the paradox of substantial poverty in the midst of unprecedented abundance. The longest peacetime expansion in our economic history continued through the year, resulting in record numbers of employed, record high wages and profits, and record production. Yet one-fifth of all Americans—35 million men, women, and children in 9 million families—lived on family incomes of under $3,000 per year.
    This economic fact was the context for the increasing demand that prejudice no longer be allowed to hinder any individual’s opportunity for education and employment—an opportunity already clouded by poor schooling and exclusion from many kinds of rewarding work.
    Increasing national wealth made the time auspicious for programs to accelerate the rate of decline in the number of poor families. The vast potential of automation, coupled with a rapid increase in population, made it mandatory to move against prejudice before it permanently canceled millions of futures.
    These considerations resulted in the passage of the Civil Rights Act and the Economic Opportunity Act by the 88th Congress, at the recommendation of the President. The Department of Labor, in its 52d year of service, was assigned important responsibilities in the national effort to achieve a more equal and open society.
    The Department came to these responsibilities with a maturing experience in manpower development. Since 1962, when the administration of the newly enacted Manpower Development and Training Act was placed in the Labor Department, the public program to fit and refit human skills has been accelerating. In fiscal 1964, the number of these programs approved totaled 2,700 for 145,000 individuals—double the amount of the previous year. It brought to 4,301 the number of projects approved for 218,101 men and women.
    As the manpower program expanded, it became evident that it was bringing immediate opportunity to those best equipped to seize it—those advantaged by education or previous work experience. The statutory requirement that funds for youth training be limited to 5 percent of all allowances paid under MDTA had the effect of withholding training from those most in need, the rapidly increasing ranks of the young unemployed.
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    Of the first 100,000 men and women trained under MDTA, 17 percent were teenagers—yet they comprised 24 percent of the unemployed. A full 72 percent of the first 100,000 were between the ages of 20 and 44. Well over half of all of the trainees had completed high school, an educational distinction enjoyed by only one-third of the Nation’s unemployed.
    In December of 1963, the Congress responded to a recommendation to broaden the scope of the MDTA to permit it to reach these young, under-educated unemployed. The 5 percent limitation on funds for youth training was lifted to 25 percent. Basic literacy training was authorized, making it possible for the first time to educate a man or woman in order to equip him for training. Training can now be conducted in private as well as public facilities.
    Within days of the enactment of these amendments, the President’s Task Force on Manpower Conservation added more convincing evidence on the need for an effective manpower policy. The Task Force, composed of the Secretaries of Defense, Labor, and Health, Education, and Welfare and the Director of the Selective Service System, had been established by President Kennedy in September 1963, to recommend a program for the rehabilitation of young men rejected for military service. The Task Force found that one out of every two selective service registrants called for preinduction examination had been found unqualified. The average age of those called for examination was 22-23. It was further found that if all of the Nation’s young men turning 18 were examined, one-third would fail—about half for medical and half for mental reasons.
    Following the recommendations of the Task Force that rejectees be offered needed health, education, training, and other rehabilitation programs on a voluntary basis, the public employment service instituted the Selective Service Rehabilitant Program in cooperation with other interested agencies. For the first time, our manpower program included some provision for those young men not fit for peacetime military service (and by implication unfit for an economy that demands educational achievement), but who had previously been rejected and returned to their homes without any attempt to correct their deficiencies.
    Experimental and demonstration programs conducted under MDTA had probed into the conditions of poor urban life and isolated rural existence, seeking answers to the difficult question of whether training is an appropriate answer to the employment dilemma of those without education. The institutional programs of MDTA were dealing with those who had some success in life, either in school or in work. The experimental programs were dealing with the defeated. By definition, the 20 special youth projects approved in fiscal 1964 involving some 10,000 boys and girls had as their clients young men and women between the ages of 16 and 21 who were out of school and unemployed, who lived in seriously impoverished circumstances, and who could not be expected to benefit from regular occupational training.
    4
    Additional valuable experience was gained during the summer of 1964 through Project Cause. Looking forward to the time when new avenues would be provided for disadvantaged youth to escape from illiteracy and poverty, Project Cause was a campaign to recruit and train 1,750 counselor aides and youth advisers to stall Youth Opportunity Centers serving needy young persons. Nearly 22,000 applicants filed for the program. Those chosen entered a 10-week program conducted at 27 universities in various regions of the country. For 50 hours a week, they received intensive instruction in the special techniques of dealing with disadvantaged youth. More than 1,000 of these graduates are now at work in State employment service agencies, preparing for their key roles in the war against poverty.
    The Department of Labor, then, had already assembled an impressive experience in dealing with disadvantaged unemployed when the Economic Opportunity Act added new responsibilities.
    Youth unemployment, especially among the school dropouts, presents our society with one of its gravest problems. In the entire decade of the 1950’s, the number of 18- and 19-year-olds in the labor force increased by 300,000. During 1965 alone, their numbers will rise by 600,000 to 4 million.
    Many thousands of these new workers have already been assigned by the circumstances of their birth to the human scrap heap of wasted Americans that promises to grow larger with the population—unless they receive help. An important part of that help will be provided by the programs authorized by the Economic Opportunity Act. The largest of these in terms of numbers is the Neighborhood Youth Corps, administered by the Department of Labor. The NYC is designed to enroll 200,000 youths of 16 to 21, both boys and girls, in work-training programs each year. Those young people having difficulty staying in school for financial reasons will be provided with part-time work; others who have dropped out will be enabled to return; and still others will receive the training necessary to start them on an employment career.
    Planning for the establishment of the Neighborhood Youth Corps occupied a special task force for many months during 1964, so that at its formal announcement several major programs were ready for almost immediate approval.
    During this entire period, the research projects under MDTA began to mature. The Office of Manpower, Automation, and Training developed 40 new projects during fiscal 1964. For the first time, the Nation had in prospect an accurate analysis of many of the important factors of economic life—manpower supply and demand, occupations that will expand and those that will diminish, the impact of technological change upon various industries, the geographical movement of industry, the motivation behind successful training and behind the failure to take advantage of training.
    On-the-job training programs also showed a marked increase over 1963- A total of 1,130 new apprenticeship and 992 industrial training
    5
    programs were developed and installed by the Bureau of Apprenticeship and Training during 1964. Training was provided for between 225,000 and 250,000 apprentices. OJT programs under MDTA were approved for 10,200 workers.
    An additional element in the emergence of an effective manpower program came with the opening during 1964 of Apprenticeship Information Centers in Baltimore, Boston, Chicago, Cincinnati, Cleveland, Detroit, and Newark. At these centers young men are receiving guidance and counseling in apprenticeship programs and referrals are being made to existing programs.
    Progress was made in filling one of the largest gaps in our manpower knowledge—that of existing job vacancies in specific areas by specific occupations. Pilot programs in Chicago and Buffalo proved the feasibility of conducting job vacancy surveys. Toward the end of 1964, 20 such surveys were started as a joint effort of the Bureau of Labor Statistics and the Bureau of Employment Security.
    In the same vein, Project LINCS was inaugurated. In this experiment, automatic data processing and telecommunications are used to speed labor supply and demand data between 17 stations in the Western States.
    The intensive progress made in manpower development highlighted a period of increased activity for the Department as a whole. For the Women’s Bureau, 1964 will remain memorable as the year of the passage of the long-awaited Equal Pay Act, which became effective on June 11, 1964. By that month, 32 Governors’ Commissions on the Status of Women had been established, and also in that month a conference of the Governors’ commissions was held in Washington, for which the Women s Bureau did the staff work.
    During the year, the Department prepared for the expiration of Public Law 78 on December 31, 1964. On that date, the 14-year-old program under which Mexican nationals were imported to work our farms came to an end. As the year ended, the Department mounted vigorous recruiting campaigns to obtain domestic workers to take these jobs. The stakes here are high: tens of thousands of jobs for otherwise unemployed men and women, the efficient operation of a great many business enterprises, and the winning of a fight for human decency.
    The Office of the Solicitor of Labor also recorded a noteworthy event in 1964 when the fringe benefits amendments to the Davis-Bacon Act were passed—the first substantive change in that law since its original passage in 1935. The Office drafted the regulations that eventually established the Wage Appeals Board, which has the responsibility of reviewing all important cases under the Davis-Bacon Act and its related statutes. During the year, the number of court cases instituted under the Fair Labor Standards Act and the Walsh-Healey Act reached an alltime high of 1,608, of which 49 were criminal prosecutions. These resulted in 1,507 favorable civil dispositions and 41 criminal convictions.
    The Bureau of Labor Standards intensified its safety programs, con
    6
    ducting 429 training sessions for 17,000 union members and 43 for about 4,000 Federal employees, in the face of a mounting accident total. In 1964, a total of 227,152 work injuries was reported to the Bureau of Employees’ Compensation. While Federal civilian employment was unchanged, all segments of private employment had increases in injuries, averaging nearly 7 percent.
    The Bureau staffed the Ninth Biennial President’s Conference on Occupational Safety during the year. Over 3,000 delegates from all segments of American life met to discuss the means by which occupational deaths and injuries might be prevented. Each year, 2 million men and women lose their lives and 14,000 persons are injured in occupational accidents.
    The Wage and Hour and Public Contracts Divisions of the Department completed a record number of 56,000 investigations. Almost $23 million in back wages was recovered for 189,000 employees. On September 3, 1963, the minimum wage increased from $1.15 to $1.25 in accordance with the provisions of the 1961 amendments to the Fair Labor Standards Act. About 2.6 million of the 24 million workers covered by the act received a direct pay increase as a result. The Equal Pay Act brought new duties for the Divisions, charged with the enforcement of its provisions that prohibit wage discrimination on the basis of sex.
    With the publication of the January 1964 Consumer Price Index, the Bureau of Labor Statistics completed its 5-year revision of the index. Experimental surveys were started to improve the concepts of “unemployment” and ‘‘labor force” as a further implementation of the recommendations made in 1962 by the President’s Committee to Appraise Employment and Unemployment Statistics. Two of the important studies released by BLS during the year analyzed the relationship between private pension plans and labor mobility and described the technological trends in 36 major American industries.
    It has become increasingly evident that more detailed information about the labor force, trends in employment, the nature of unemployment, and the character of occupational shifting is needed. A manpower program designed to provide opportunity for every person, to staff the modern economy with skills at the time and place they are needed, to maintain training facilities as needed crossovers to new and better jobs will extend only as far as our knowledge permits. The expansion in operating programs must be accompanied by an expansion in our knowledge of the labor force and its future.
    The events of 1964 demonstrated once again that the labor factor is a crucial one in United States foreign relations. In a wide range of developing countries, the political leadership has emerged from the labor movement. Often, the labor movement in a nation is the only representative of popular opinion—and the only institution capable of exerting a lasting influence on that opinion. Our nation continues to have a paramount interest in assisting foreign labor movements to achieve democratic and free processes. A new Office of Program Development and Coordi
    7
    nation was formed in 1964 within the Bureau of International Labor Affairs to assist less developed countries in the formation of labor and manpower institutions. During the year, the Bureau helped to arrange programs for 680 foreign visitors, including 508 trade unionists.
    This brief survey of highlights of the Department’s activity during 1964 indicates the kind of progressive change that is taking place, both in our society and in those institutions devoted to improving it. That change is for the better. Never before has the Department been so well equipped to undertake that central of all tasks, providing for the future generations a guarantee of absolute employment opportunity. While much of the Department’s work is technical in nature, while many of the programs may deal in abstract concepts and impersonal data, the welfare of the individual American working man and woman remains the subject and the object of our efforts.
    8
    OFFICE OF THE SECRETARY
    OFFICE OF THE ADMINISTRATIVE ASSISTANT SECRETARY
    The Administrative Assistant Secretary is the principal administrative official of the Department. He is responsible for the budgetary and financial management, personnel management, administrative management, program analysis and evaluation, and organization of the Department, for the provision of administrative services, and administration of the Department of Labor Library. He is assisted by a Deputy Administrative Assistant Secretary who serves as the Department’s comptroller, and by an Assistant Administrative Assistant Secretary who also serves as Director of Personnel.
    All major relationships outside the Department on administrative and management matters are developed and maintained by the Administrative Assistant Secretary. He also coordinates contacts with the Bureau of the Budget and the Congress, except for those involving substantive legislation.
    BUDGET AND FINANCIAL MANAGEMENT
    Appropriations and other authorizations for the Department of Labor for fiscal year 1964 totaled $871 million and provided for almost 9,000 positions. Of this amount, $207 million was for salaries and expenses, $225 million for unemployment compensation for Federal employees and ex-servicemen and injured Federal employees’ compensation claims and expenses, and $439 million from trust fund authorizations (including $425 million for grants to States for administrative costs of the employment compensation programs).
    Included in these figures are suppiementals for the unemployment compensation fund for Federal employees and ex-servicemen, $42 million; the employees’ compensation and claims fund, $5 million; manpower development and training activities, $20 million; Mexican farm labor program’s compliance activities, $430,000; and reimbursement from Mexican farm labor supply fund (salaries and expenses), $165,000. (See table 1.)
    ORGANIZATION AND MANAGEMENT
    The Department developed and began the installation of a program budget management system which will provide on a departmentwide basis an integrated system of planning, programing, budgeting, accounting, reporting, and review and analysis. This system will make it possible to
    11
    improve management control by forecasting workloads and resource requirements against which progress will be measured. The system seeks to provide a manageable method of dealing with the entire program of the Department, or of one of its major components, in terms of judgments as to work to be done, accomplishments to be sought, costs of program support, and the balance and interrelationships of program elements.
    A forms and reports management program was initiated which provides for: (a) Minimum program standards and criteria for all internal forms and reports created by bureaus and offices, and (b) policies and procedures to govern the establishment of forms and reports required by the Department from the public, industry, and outside agencies.
    The Department eliminated 29 repetitive reports and simplified 79 reports in response to the President’s directive calling on all agencies to review all external reporting requirements. This reduction of the paperwork burden on the public by the Department resulted in the discontinuance of 682,816 annual reports and the simplification of an additional 68,990 equivalent annual responses.
    A management survey was conducted of the accounting, payroll, and voucher audit operations which are centralized in the Office of the Administrative Assistant Secretary. Procedures, controls, and utilization of resources were studied which resulted in the improvement of managerial and supervisory approaches and achieved greater coordination between the Division of Accounting, Payroll, and Audit Operations and the Division of Data Processing.
    The Department began to convert its payroll operations from punchcard and manual systems to a small-scale computer system. The newly developed departmental integrated appropriation accounting system will be placed on the computer during fiscal year 1965. This will result in complete centralization of accounting functions on a unified basis within the Office of the Administrative Assistant Secretary. Plans are being developed for the eventual computerization of budget processes as well as other financial management programs.
    A reorganization created the Labor-Management Services Administration in order to develop a comprehensive labor-management relations program which will better provide staff assistance to the Secretary and which will marshal and make available to labor and management the research data and other resources needed to improve the climate of labor-management relations.
    In response to President Kennedy’s memorandum of October 11, 1962, to heads of departments and agencies outlining his program for improving manpower control and utilization in the executive branch, the Department of Labor volunteered to be the first Government agency to have an independent review of its management improvement and manpower utilization practices. The review was conducted by a team representing the Bureau of the Budget, the Civil Service Commission, and the Department. Improvements were recommended in program planning, benefit-cost analysis,
    12
    organizational structure, fragmentation of functions and responsibility, staffing control, and other areas. Where feasible, these recommendations were put into effect immediately; others are still in the process of implementation. The team submitted its report to the Secretary in February 1964.
    PERSONNEL
    The role and organization of the departmental personnel activity were modified substantially in fiscal year 1964. To provide more responsive services, personnel offices were established in administrations and the larger bureaus and offices, specifically in the Manpower Administration, Bureau of Labor Statistics, Bureau of Employees’ Compensation, Labor-Management Services Administration, Wage and Hour and Public Contracts Divisions, and Office of the Solicitor. One operating personnel office was established in the Office of the Administrative Assistant Secretary to service the Office of the Secretary and the smaller bureaus and offices. It is expected that the effectiveness and efficiency of personnel operations will benefit through a closer identification of personnel authority with the Department’s substantive programs. The role of the departmental personnel organization is to concentrate on the qualitative improvement of personnel management within the Department through planning, coordination, and guidance and the review and evaluation of administration, bureau, and office personnel operations and services.
    To facilitate the transition to decentralized personnel operations, standard organization patterns and mission statements for personnel offices were developed, special interim instructions were written, and training was given to members of the new personnel staffs.
    Further progress was made in the implementation of the Executive order on employee-management cooperation in the Federal service. Formal or exclusive recognition was granted to employee organizations for eight additional units. About 50 percent of the Department’s employees are now working in units for which employee unions have exclusive recognition. An agreement on merit staffing was negotiated with the union that represents most of the Department’s Washington, D.C., staff; and implementing regulations were issued for the Standards of Conduct for Employee Organizations, the Code of Fair Labor Practices, and the dues withholding program. To improve employee-management understanding, a program of regularly scheduled meetings between union and management representatives at various organizational levels was initiated in the Washington, D.C., area.
    Major accomplishments in fiscal year 1964 include the establishment of written performance requirements for virtually every departmental position and the participation of almost all supervisors below grade GS-14 in a series of 5-day supervisory practices institutes.
    Steps were taken to expand the program for improving supervision
    749—199—65---2
    13
    through an advisory service dealing with supervisors’ personnel management problems. Continued emphasis was given to the program of bringing about full and appropriate utilization of employee skills and abilities, and helping to achieve the President’s goal of improved manpower use.
    A substantial revision of the merit staffing program was completed and installed. Among other improvements, the revision is expected to provide more information to employees, permit better evaluation of candidates, and speed the filling of vacancies.
    The Department’s professional and clerical recruiting activities continued to emphasize the selection of high-quality candidates. College recruiters visited 66 colleges and universities throughout the country interviewing candidates who had passed the Federal service entrance examination or its management intern option. Recruiters also tested and interviewed potential stenographers in high schools and colleges for appointment in the Department.
    The Department of Labor Board of U.S. Civil Service Examiners announced examinations and established or maintained registers for eight nonclerical positions ranging in grade from GS-9 through GS-15.
    The Department continued its intensive positive recruitment program to locate qualified, eligible minority group candidates for placement in all job classifications and at all grade levels.
    New classification standards were developed for apprenticeship and training representative positions. A review of classification operations was conducted in the Labor-Management Services Administration.
    Criteria were developed to evaluate the adequacy of position classification programs in administrations, bureaus, and offices.
    New policies, objectives, and procedures were established for the classification of research positions in the Department.
    Employment in the Department at the close of the fiscal year is shown in table 2.
    ADMINISTRATIVE SERVICES
    The chronic space shortage of fiscal year 1963 carried over into 1964 and continued to be one of the Department’s most pressing administrative problems. Departmental operations were housed in 24 widely separated buildings in the Washington, D.C., metropolitan area and, as before, this scattering of operations created hardships in administrative functions.
    Work was centered on plans to reduce the number of locations and at the same time to consolidate each major organizational unit into one building, along with other functionally related organizations as space permitted. Toward this end, as of the close of the fiscal year the number of locations was reduced by six buildings; the Department’s field offices located within Washington, D.C., were consolidated in one building; the United States Employment Service for the District of Columbia, of the Bureau of Employment Security, and the District of Columbia’s
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    Unemployment Compensation Board were moved into a new building constructed especially for these agencies and containing over 100,000 square feet of usable space; the Department’s publications distribution and supply operations were consolidated in one building; and selected program activities of the Department’s bureaus, offices, and administrations were relocated, resulting in more efficient operations.
    In recognition of the Department’s space problems, work continued in developing plans for the construction of a new building in the District of Columbia capable of housing the entire Department of Labor headquarters. In addition, considerable emphasis was placed during the year on plans to consolidate space holdings in cities where departmental regional operations are located, and to upgrade substandard or marginal space throughout the entire field.
    Installation of the IBM 1440 computer system and the subsequent conversion of the data processing operations to the computer system highlighted activities in the area in fiscal year 1964. The new system will permit faster and more expanded centralized data processing services.
    The workload of the Division of Printing and Reproduction increased during the year. The number of printed units (impressions) increased by over 5 million, from 79,900,000 to 85,150,600.
    A comprehensive property utilization program has been developed for the various activities of the Department. All requisitions are screened to insure that departmental excess and Government surplus items are used to the greatest extent possible in filling equipment requisitions. Under this program, the Department acquired surplus property from Government Services Administration and other Federal agencies valued at $128,551 during fiscal year 1964. Likewise, excess equipment valued at $28,976 was transferred between the various bureaus and offices.
    A new inventory guide was developed for all items of nonexpendable property. This guide is of significant value in taking the annual inventory.
    Consolidation of storage facilities for the departmental blank forms, publications, and supplies at the warehouse at 770 M Street SE. was completed. The low sales inventory system was installed in the warehouse, and considerable savings of man-hours in inventory control are expected. A continuing program of reviewing supplies of bureau forms and publications was established to identify material which is obsolete or otherwise of no further value and which may be removed from stock.
    Significant repair and renovation projects were undertaken on the Main Labor Building at 14th and Constitution Avenue. These included installing fluorescent lighting in 252 rooms of the building and painting a considerable number of the rooms. Also, the exterior of the building was cleaned, mortised joints pointed up, and birdproofing of the building was begun. Plans were completed for renovating the basement of the Main Labor Building.
    A total of 2,250 field personnel in 208 offices were serviced from regional centralized services offices located in Boston, New York, Chicago, Cleve
    15
    land, and San Francisco. Limited services were provided for offices in the Kansas City and Atlanta regions. It is planned to fully staff these latter offices during fiscal year 1965.
    A survey was conducted in the Chicago regional offices to evaluate the progress of the Regional Administrative Services Office, to refine and improve existing procedures and relationships, and to develop methods for providing additional services in the personnel and voucher auditing field. Pilot projects will be established in San Francisco, Chicago, and Atlanta regional offices to provide personnel services in fiscal year 1965-
    LIBRARY
    Library activities increased as new Department programs developed. A total of 20,312 reference requests were answered and 77,729 publications were circulated.
    A total of 13,377 volumes were added and 901 were withdrawn, making a net increase of 12,476 in the cataloged collection.
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    Table 1.—Appropriations and other authorizations, fiscal year 1964
    Positions Amount
    Salaries and expenses:
    Bureau of Labor Statistics_________________________________________
    Revision of Consumer Price Index________________________________
    Bureau of International Labor Affairs______________________________
    Area redevelopment activities______________________________________
    Manpower development and training activities_______________________
    Bureau of Apprenticeship and Training______________________________
    Mexican farm labor program, compliance activities__________________
    Bureau of Veterans’ Reemployment Rights____________________________
    Bureau of Labor Standards__________________________________________
    Labor-Management Services Administration___________________________
    Bureau of Employees’ Compensation__________________________________
    Women’s Bureau_____________________________________________________
    Wage and Hour and Public Contracts Divisions_______________________
    Office of the Solicitor____________________________________________
    Trade adjustment activities________________________________________
    Office of the Secretary____________________________________________
    Working Capital Fund operations_________________________________
    Total, salaries and expenses from general funds______________________________
    Unemployment compensation for Federal employees and ex-servicemen. Employees’ compensation, claims and expenses_____________________________
    Total, benefit and claims from general funds.
    1,376	$16,345,000
    151	1,320,000
    71	842,000
    45	8,500,000
    585	130,000,000
    559	5,460,000
    164	1,300,000
    76	784,000
    317	3,470,000
    660	7, 500,000
    541	4, 275,000
    84	785,000
    1,818	19,300,000
    495	4,420,000
    12	150,000
    219	2,219,000
    400	—
    7, 573	206,670,000
    152,842,000
    72,000,000
    224,842,000
    Trust fund authorizations:
    Office of the Secretary_____________________________________________
    Office of the Solicitor_____________________________________________
    Bureau of Employment Security (salaries and expenses)_______________
    Grants to States. _■________________________________________________
    Reimbursement from Mexican farm labor supply fund (salaries and expenses) ____________________________________________:_______________
    Administration of longshoremen’s rehabilitation program_____________
    Total, trust fund authorizations.
    Total, funds available________________________________________________
    1,141
    160
    7
    1,308
    138,000
    127,000
    12,400,000
    425,000,000
    1,300,000
    60,000
    439,025,000
    8,881	$870, 537,000
    Table 2.—Number of employees on the rolls of the Department of Labor as of June SO, 1964
    Bureaus	Total	Full-time employees			Other
    		Total	D.C.	Field	Total	D.C.	Field
    All bureaus:	9,238	8,849	4,814	4,035	389	104	285
    Office of the Secretary		629	598	557	41	31	19	12
    Office of the Solicitor. 			429	426	256	170	3	3
    Bureau of Labor Standards	290	289	170	119	1
    Wage and Hour and Public Contracts
    Divisions.				 .	1,764 1,789 75	1,750	305	1,445 393	14	3	11
    Bureau of Labor Statistics _.			1', 556 73	1,163 63		233	14	219
    Women’s Bureau. 		 _							10	2	2
    Bureau of Employees’ Compensation	 Bureau of International Labor Affairs		573	571	161	410	2	2
    	177	165	165		12	12
    Manpower Administration
    Office of Manpower Administrator... Office of Financial and Management	22	12	12		10	10

    Services.					52	46	46		6	6
    Office of Manpower, Automation,
    and Training... __	291	282	255	27	9	8	1
    Bureau of Apprenticeship and Train-
    ing_ __			 _			577	577	115	462
    Bureau of Employment Security	 Labor-Management Services Adminis-	1,854	1,803	1,168	635	51	15	36
    tration. _.	...	___. 		716	701	378	323	15	10	5
    President’s Committee on Equal Employ-
    ment Opportunity			61	60	60		1	1

    17
    OFFICE OF INFORMATION, PUBLICATIONS, AND REPORTS
    The Office of Information, Publications, and Reports is the principal Jink between the Labor Department and the public. An information clearinghouse, the Office seeks to inform the public of the Department’s work, its publications, facts researched and released by its various bureaus and offices, and labor legislation.
    In achieving this end, the Office in fiscal year 1964 issued news releases and replied to thousands of inquiries from labor, business, and the public. In addition, it distributed weekly news packets to some 400 labor, 2,700 weekly, and 180 Negro newspapers, and other press organizations. It also coordinated the Department’s relationship with the press, radio, television, and other information media.
    The Office reviewed publications issued by the bureaus and offices for consistency with Department policy, and compiled and edited publications of departmentwide significance.
    During the year, the Office disseminated information about the Department to nearly a million persons through participation in approximately 100 conferences and conventions throughout the Nation.
    Department representatives explained the provisions of Federal labor legislation to interested officials of labor and management, provided information to the public on a wide variety of subjects of Department concern, and emphasized the need for education and training to qualify for employment before audiences of youths and interested adults.
    The Office’s visual services division produced art and designed visuals or acted as visual consultant for all major departmental publications and other visual media. Several hundred miscellaneous “idea roughs,” publication layouts, and “format” designs were developed. From these presentations, publications, flyers, posters, television spots, slide films, training charts, and exhibits were produced. These were made available to the Department for national and international use.
    In addition, a permanent exhibit hall, to be housed in the main building, was designed. Work on design and construction for exhibits, artifacts, and historic mementos of the history of labor and the Department is still in progress.
    Also during the fiscal year, the Office issued revised editions of two of its publications, “U.S. Department of Labcr,” an explanation of the Department’s organization and functions; and “Important Events in American Labor History, 1778-1963,” a chronology of major labor events.
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    OFFICE OF THE SOLICITOR
    The Solicitor is the chief legal officer of the Department as well as a policy official and adviser. He advises the Secretary, the Under Secretary, and the Assistant Secretaries, and also performs many diversified types of legal services which are required in the operations of the various bureaus and offices of the Department. One of his more significant areas of responsibility is the handling of legal proceedings arising under laws administered and enforced by the Department. He also serves as top legal adviser to the Secretary in formulating and preparing the Department’s legislative programs, and in appearances before congressional committees.
    In addition to these functions, the Solicitor is authorized to perform operating functions in connection with the administration and enforcement of the Davis-Bacon Act and other statutes relating to the predetermination and payment of prevailing wages on Federal and federally financed and assisted construction projects. He testified at length during the year before a House general labor subcommittee on the administration of these laws. The Solicitor is also vested with final authority with respect to tort claims arising out of the Department’s activities.
    Functionally, the legal staff of the Solicitor in the Washington office is comprised of five divisions, with an Associate Solicitor in charge of each. The immediate Office of the Solicitor is composed of the Solicitor, his Deputy, and several attorneys as special assistants assigned to the handling of special legal problems.
    In addition to the Washington office, a staff of attorneys is maintained in field offices throughout the United States and Puerto Rico, principally to carry out the litigation responsibilities of the Department.
    LITIGATION DIVISION
    The Litigation Division is charged with the Department’s litigation and quasi-litigation responsibilities, except as specifically otherwise assigned. These functions are performed principally in connection with the enforcement of wage-hour, workmen’s compensation, and maritime safety laws.
    Wage-Hour Litigation
    The number of court cases instituted during fiscal year 1964 under the Fair Labor Standards Act and the Walsh-Healey Act reached an alltime high of 1,608, of which 1,559 were civil actions and 49 criminal prosecutions. A total of 1,557 court cases were closed, with 1,507 favorable civil
    21
    dispositions and 41 criminal convictions. In addition, 34 formal administrative proceedings were instituted under the Walsh-Healey Act, and 35 were closed.
    Restitution of almost $3,100,000 was made to employees for wage underpayments, consisting of about $2,900,000 paid as back wages under the FLSA and $190,000 paid as liquidated damages under the Walsh-Healey Act. Fines in criminal proceedings totaled $73,638, and in contempt proceedings $29,940.
    Forty-one briefs were filed in appeals under the Fair Labor Standards Act and the Walsh-Healey Act—four in the Supreme Court and the remainder in the courts of appeals. Twenty-six decisions were handed down by the courts. The Department’s position was upheld in 17 and rejected in 7; in the remaining 2, the Department was successful in part.
    Legal assistance, including representation at formal administrative hearings and participation in prehearing activities, was provided in connection with wage-determination proceedings under the Walsh-Healey Act in nine industries, in four of which determinations were issued within the fiscal year. Two determinations under the act were challenged in the courts. One was set aside; the other is still in litigation.
    Employees’ Compensation
    The Litigation Division renders legal services to the Bureau of Employees’ Compensation in the administration of the several Federal workmen’s compensation statutes. These statutes provide benefits to employees and their families in the event of injury or death occurring in the performance of duty. The Division also defends the administrative decisions of the Bureau in appeals taken by Government employees to the Employees’ Compensation Appeals Board. There were 354 such appeals in the fiscal year. With respect to claims of nongovernment employees covered under the Longshoremen’s and Harbor Workers’ Compensation Act and related statutes, the Division participates with the Department of Justice in defending the administrative adjudications of the Bureau’s Deputy Commissioners in the courts. The number of cases in which the Division participated rose this year to a high of 82 from last year’s total of 61.
    The Division also supervises the prosecution of private claims against persons responsible for injuries to Government employees, in order to assure maximum reimbursement to the Government out of the proceeds of recoveries for the compensation paid by the Government under the Federal Employees’ Compensation Act. Gross recoveries during the year on such claims amounted to $3,532,159-37. After deducting the expense of recovery, a net of $2,557,031.73 remained available for offset against compensation paid or payable by the United States to its employees or their dependents. Both of these figures set records. From the net recoveries, reimbursement was made to the Government in the amount of $686,296.22, and credit for medical bills paid was allowed in the amount of $87,158.30. Thus the
    22
    total immediate benefit to the United States was $773,454.52. The remainder of the net recovery became available for credit against future liability upon the same claims.
    Maritime Safety Standards
    Another function of the Division is to furnish legal services to the Bureau of Labor Standards in connection with its enforcement of the maritime safety program under the Longshoremen’s and Harbor Workers’ Compensation Act. In the course of the fiscal year, five cases charging violations were brought before hearing examiners. Cease-and-desist orders were obtained in each. Two court cases resulted in injunctions to restrain violations, and one criminal prosecution resulted in the assessment of a fine of $3,000.
    INTERPRETATIONS AND OPINIONS
    At an overall record level were the number of written and oral opinions issued and reviewed, the legal questions considered and disposed of in reviewing proposed correspondence, the legislative materials, contracts, and other documents—including material for the Federal Register—and the conferences involving legal questions. More than 45,000 items in these areas were handled by the Division of Interpretations and Opinions during fiscal 1964.
    In addition to the continuing demands of established programs for legal advice and services, the Equal Pay Act of 1963, the acceleration of activities under new programs such as the Manpower Development and Training Act, as amended, and the Contract Work Hours Standards Act, and legal services required as a result of congressional consideration of a variety of proposals of concern to the Department contributed to the increased workload.
    An interpretative bulletin on the Equal Pay Act of 1963 was prepared and published in the Federal Register prior to the general effective date of this act, an amendment to the Fair Labor Standards Act. Revisions of several interpretative bulletins on provisions of the Fair Labor Standards Act were also prepared and published to clarify the application of amendments to the law and give effect to authoritative judicial and administrative decisions.
    During fiscal 1964, this Division answered more than twice as many requests for opinions on questions under the Contract Work Hours Standards Act as in fiscal 1963. Actions taken under the provisions of section 105 for reasonable limitations, variations, tolerances, and exemptions from the act included regulations limiting geographical coverage of contract work under the act to areas within which the Fair Labor Standards Act is applicable. This permits the computation of the “basic rate of pay” in accordance with rules applicable to computation of the “regular rate” or other rate authorized under the Fair Labor Standards Act as the basis for computing overtime compensation.
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    In the unemployment compensation area, in addition to handling a variety of important questions involving the conformity of State laws and regulations with Federal requirements, consideration was given to the relationship between State unemployment insurance benefits and trade readjustment allowances under title III of the Trade Expansion Act. Legal services were provided in connection with the development and implementation of legislation (Public Law 88-173) relating to methods by which amounts made available to States pursuant to the Temporary Unemployment Compensation Act of 1958 and title XII of the Social Security Act are to be restored to the Treasury of the United States.
    With an expanded program under the Manpower Development and Training Act, there was a corresponding increase in the legal services required. In addition to furnishing all necessary legal advice on questions arising under the program, the services provided included the preparation of all contracts for demonstration programs under the act and the drafting and publishing of regulations to implement the recent amendments to the act. In the litigation involving foreign labor programs pending during the past year, the decisions of the U.S. District Courts upholding the Government’s position were affirmed on appeal. (Texas State AFL-CIO v. Kennedy, 330 F. 2d 217; Limoneira Co. v. Wirt^, 327 F. 2d 499, affirming 225 F. Supp. 961.)
    In the veterans’ reemployment rights area, the volume of legal opinions prepared and reviewed and the number of cases referred to the Department of Justice were again at a high level. A “Legal Guide and Case Digest” was published and distributed in two looseleaf volumes which will be kept up to date by continuing revisions as additional judicial interpretation of the statutes becomes available. During the 1964 fiscal year, two important decisions of the U.S. Supreme Court (fiTilton v. Missouri Pacific Kailroad, 84 S. Ct. 595, and Brooks v. Missouri Pacific Kailroad, 84 S. Ct. 578) provided additional clarification of the “escalator principle.” Under this principle, except for those rights dependent on a bona fide actual work experience, ex-servicemen are assured all the advancement of position, status, and seniority rights which they could have claimed had they remained in continuous employment during their period of military service.
    Documents published in the Federal Register pursuant to provisions of the Administrative Procedure Act and the Federal Register Act numbered 215 for the fiscal year, of which 75 provided new or amended provisions in the Code of Federal Regulations. One hundred and eighty-seven minimum wage orders for industries in Puerto Rico and the Virgin Islands were prepared and published.
    Put into effect or strengthened during the year were regulations and standards designed to insure that discrimination because of race, creed, or color will not be permitted to exist in the administration of apprenticeship training programs, employment service activities, and the State employment security agencies’ personnel administration.
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    WAGE DETERMINATIONS
    The Division of Wage Determinations performs operating functions under the Davis-Bacon Act, its related prevailing wage statutes, the Copeland Act, the Contract Work Hours Standards Act, and Reorganization Plan No. 14 of 1950. The Division’s Branch of Wage Determinations determines minimum wages on Federal and federally assisted construction to be paid laborers and mechanics on contracts subject to the Davis-Bacon Act and related prevailing wage statutes. The Branch of Coordination and Enforcement administers functions vested in the Secretary by Reorganization Plan No. 14 of 1950, the purpose of which is to achieve coordination of administration and consistency in the enforcement of the statutes covered by its provisions.
    Improvement in procedures pertaining to the administration of the Davis-Bacon Act and similar prevailing wage statutes was accomplished by recent revisions of the Department’s regulations. The principal changes accomplished by these revisions are as follows:
    ® The administration of the act and its related prevailing wage statutes was facilitated by (a) making wage determinations effective for 120 calendar days from the date of their issuance, (b) providing a uniform procedure for the establishment of wage rates for classifications not included in determinations, and (c) giving the administering agencies more time for implementing changes in determinations.
    •	The prevailing wage determination process was improved by requiring the submission of available wage rate information by the agencies requesting determinations.
    •	The Copeland “anti-kickback” regulations were improved by eliminating the necessity of requests for permission to make payroll deductions where experience has shown that the policy and provisions of the Copeland Act will not be impeded.
    •	The coordination of the administration of the labor standards provisions of the various statutes subject to Reorganization Plan No. 14 of 1950 was aided by providing realistic reporting procedures.
    •	The debarment provisions under Reorganization Plan No. 14 of 1950 for labor standards violations were improved by permitting flexible debarment (up to 3 years) and by providing for removal from the debarred bidders list upon a demonstration of current responsibility to comply with the labor standards provisions subject to Reorganization Plan No. 14.
    ® The Wage Appeals Board was created to review wage determinations, debarment cases, assessments of liquidated damages under the Contract Work Hours Standards Act, and controversies concerning the payment of prevailing wage rates or proper classifications of laborers or mechanics which involve significant sums of money, large groups of employees, or novel or unusual situations.
    The 1964 amendments to the Davis-Bacon Act (P.L. 88-349) are of particular significance in terms of the Division’s responsibilities under the
    25
    act. Among other things, the amendments provide for the inclusion of certain bona fide fringe benefits in prevailing wages under the act.
    During fiscal year 1964, the following proposals were enacted which contain Davis-Bacon provisions to be administered by the Division: Health Professions Educational Assistance Act of 1963, Mental Retardation Facilities Construction Act, Community Mental Health Centers Act, Higher Education Facilities Act of 1963, Vocational Education Act of 1963, and the Library Services and Construction Act.
    The Branch of Wage Determinations issued 43,186 wage determinations during fiscal year 1964. In all, 36,687 items of correspondence were issued in connection with these determinations.
    The Branch of Coordination and Enforcement opened 1,407 enforcement cases. A total of 1,671 cases were processed to completion, a number exceeding those closed in any previous fiscal year under the Reorganization Plan. In cases involving serious violations of the various statutes within the scope of Reorganization Plan No. 14 of 1950, ineligibility sanctions were imposed against 27 contractors responsible for such violations. As a result of enforcement actions, restitution totaling $463,794.60 was secured for 4,247 laborers and mechanics.
    LABOR-MANAGEMENT LAWS
    The Division of Labor-Management Laws is responsible for supervising and coordinating the Department’s enforcement functions under the Labor-Management Reporting and Disclosure Act of 1959 and the Welfare and Pension Plans Disclosure Act, and for rendering legal advice and services to the Office of Labor-Management and Welfare-Pension Reports.1
    During the fiscal year, the Division considered 309 cases involving the LMRDA for possible civil or criminal litigation. Thirty-four civil actions were instituted in the Federal district courts and 80 cases were transmitted to the Department of Justice for criminal prosecution. Of the civil actions instituted, 25 involved violations of the election provisions of the act, 6 actions were brought to compel the filing of reports as required by title II, and 3 actions were instituted to enforce administrative subpoenas issued by the Director of LMWP. During the same period, relief was granted to the Government in 13 cases. The Division also participated in six defensive actions brought against the Secretary in the Federal courts, with two cases resulting in judgments for the Government.
    Several important and far-reaching court decisions involving the LMRDA were rendered during the past year. In Altman v. Wirt^, 56 LRRM 2651 (U.S.D.C., D.C., 1964), the court held that it was not authorized to direct the Secretary to file suit under title IV where the Secretary had, in the
    1 On Aug. 21, 1963, the Bureau of Labor-Management Reports, which administered the LMRDA of 1959, and the Office of Welfare and Pension Plans, which administered the WPPDA, were merged to form the Office of Labor-Management and Welfare-Pension Reports (LMWP). LMWP now administers both of these acts.
    26
    exercise of his discretion under his statutory authority, decided against litigation. Other important decisions include the holding that (1) the Secretary’s determination of “probable cause” to believe that a violation has occurred in an investigation under title IV is conclusive, Wirtz v. Local 30, International Union of Operating Engineers, 34 F.R.D. 13 (S.D., N.Y., 1963); (2) the 60-day period set forth in section 402(b) was not mandatory but rather directory, Wirtz v- Local 611, International Hod Carriers' and Common Laborers' Union, 229 F. Supp. 230 (D.C., Conn., 1964); (3) injunctive relief may be granted in actions under title IV notwithstanding the lack of express statutory authority, Wirtz v- Local 1752, International Longshoremen s Association, 56 LRRM 2303, 49 L.C. 18,998 (S.D., Miss., 1963); and (4) the Secretary is authorized to investigate union elections under section 601 even though no complaint was filed with him pursuant to section 402 of the act, Wirtz v. Local 191, International Brotherhood of Teamsters, 321 F. 2d 445 (2 Cir., 1963).
    The Division participated during the year in one hearing before the U.S. Board of Parole wherein a certificate of exemption from the prohibitory provisions of section 504 was being sought. One hundred and seventy-five private suits involving the LMRDA were reviewed by the Division, including two cases in which petitions for certiorari were granted by the U.S. Supreme Court. The Division prepared the Department’s comments on these cases for presentation to the Supreme Court.
    One civil action was commenced under the WPPDA to compel the filing of a corrected plan description and the annual reports required by the act. Two civil actions instituted during the previous fiscal year were favorably concluded by the parties agreeing to file the necessary reports. The Division also participated in one defensive action brought against the Secretary under the WPPDA.
    The Division rendered extensive legal assistance to LMWP in preparing regulations, reporting forms, and various technical assistance aids and other publications. Included in the above were the (1) complete recodification of all regulations issued under the LMRDA and WPPDA, (2) preparation of the Removal of Officer Regulations issued under sections 402(h) and 402(i) of the LMRDA, (3) revision of the Interpretative Bulletin on Labor organizations relating to “State or Local Central Bodies,” (4) preparation of regulations regarding the granting of exemptions from the WPPDA bonding requirements, (5) preparation of the interpretative bulletin on retention of records requirement under the WPPDA, and (6) revision of the various reporting forms required by sections 6 and 7 of the WPPDA.
    The Division also compiled the “Legislative History of the Labor-Management Reporting and Disclosure Act of 1959, Titles I-VI” which was published in June 1964.
    The Division rendered approximately 3,150 written opinions under the LMRDA and approximately 2,570 written opinions under the WPPDA.
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    LEGISLATION
    There are five areas of responsibility in the Division of Legislation: (1) Legislation, (2) labor-management relations and general legal services, (3) hearing examiners, 0) decision writing, and (5) research, analysis, and reference.
    The activities of the Division’s staff in the preparation of legislative proposals, testimony, analyses, explanatory statements, and other legislative materials for the Secretary and other Department officials continued at a high level during the second session of the 88th Congress.
    These activities culminated in the enactment of a number of important items on the Administration’s legislative program. The Department has direct responsibility for administering two of these laws—the fringe benefit amendments to the Davis-Bacon Act and the Manpower Development and Training Act amendments.
    Other important Administration measures were the subject of congressional hearings during fiscal 1964, and subsequently became law. Among these was the Civil Rights Act of 1964, on which the Legislative Division prepared testimony for presentation before four congressional committees and furnished technical legal services to the Department of Justice and congressional committees, particularly with respect to the fair employment practices provisions. Another of these very important measures was the Economic Opportunity Act of 1964, commonly called the Poverty Bill. The Associate Solicitor for the Division of Legislation participated, with an interdepartmental committee, in drafting this legislation, which incorporates in a broad package several proposals advocated by the Department in previous years. The Division s services were also utilized in hearings on the bill, subsequently enacted, to establish a National Commission on Automation and Technological Progress.
    The FLSA Amendments of 1964, the Appalachian Regional Development Act, and the Overtime Penalty Pay Act are significant among other measures for which the Division prepared testimony and furnished technical legal assistance to congressional committees.
    The Division also prepared testimony and furnished drafting services for the special railroad legislation creating the arbitration board wnich aided in resolving the prolonged railroad dispute.
    The preparation of reports to congressional committees and the Bureau of the Budget expressing the Department’s views on proposed and pending legislation continued at a high level of activity during the fiscal year 1964. Many of the reports involved extensive legal analysis and policy coordination with officials of the Department and other Government agencies.
    An important function of the attorneys engaged in labor-management relations and general legal services activity is to provide advisory legal services to the Office of the Secretary and other offices and bureaus of the Department not otherwise serviced and to prepare letters for the signature of departmental officials. As an indication of the high level of activity
    28
    of this and the legislative function, the staff prepared 730 analyses, memoranda, and orders, 773 letters for the Secretary’s signature, and 2,804 letters for the signature of the Solicitor during the past year. In addition, it performed other legal functions, such as reviewing contracts entered into by the Department,
    The hearing examiners held 50 hearings during the year pursuant to various laws administered by the Department of Labor. Most of these hearings (34) involved alleged violations of the Walsh-Healey Public Contracts Act, and 26 decisions were rendered in these cases.
    The staff writes decisions for (1) the Employees’ Compensation Appeals Board in the administration of the Federal Employees’ Compensation Act and (2) the Secretary of Labor and the Administrator of the Wage and Hour and Public Contracts Divisions in connection with the administration of the Walsh-Healey Public Contracts Act. It also provides them a variety of other legal services with respect to problems arising under these statutes. During the year, a total of 275 decisions were written.
    During 1964, the staff was also engaged in preparing legislative histories of the Fair Labor Standards Amendments of 1961, the Equal Pay Act of 1963, and the Davis-Bacon fringe benefit amendments; digests of key opinions rendered in the past on the Walsh-Healey and Davis-Bacon Acts; digests of current Solicitor’s opinions in all areas; and reports and miscellaneous legal documents.
    749-199—65—3
    29
    MANPOWER ADMINISTRATION
    MANPOWER ADMINISTRATION
    For the Department of Labor’s expanded manpower program, fiscal year 1964 was marked by a greatly accelerated rate of training project approvals, and the development of new avenues of basic manpower research.
    The Manpower Administration, established in early 1963 to better carry out the intent of Congress in its passage of the Manpower Development and Training Act, directs and coordinates the efforts of the Bureau of Employment Security, the Office of Manpower, Automation, and Training, and the Bureau of Appenticeship and Training. In addition to the direct relationship the Manpower Administration bears to these three agencies, it also reviews and seeks to add greater cohesion to all manpower-related activities of the Department.
    Basically, during fiscal year 1964, the Manpower Administration has greatly improved the Department’s capacities to fulfill the MDTA mandate of the Congress to the Secretary of Labor to ‘ ‘ determine the skill requirements of the economy, develop policies for the adequate occupational development and maximum utilization of the skills of the Nation’s workers . . . (and) promote and encourage the development of broad and diversified training programs. ’ ’
    Responsibilities for training activities under the Manpower Development and Training Act are now assigned to each of the three bureaus, with this division of assignments based upon three differing kinds of projects.
    The Bureau of Employment Security, which administers the Federal-State employment security system, directs the institutional training phase of the program. Far and away the most extensive phase, institutional projects represent the basic training tool of the act. Trainees in these projects are unemployed or underemployed workers being trained in various vocational institutions for demand occupations. They are recruited and assigned to courses through the local facilities of the State employment services.
    Fiscal year 1964 witnessed a dramatic increase in trainee participation in institutional courses. Over 1,900 projects for 114,503 individuals were approved, the latter figure more than double that compiled during all of fiscal year 1963. That rate of acceleration should continue with the increasing approvals of large multioccupational projects, often conducted on a statewide basis. Two notable examples of these in fiscal year 1964 were projects to train 3,530 Alabama workers in 28 different occupations and more than 3,000 Oklahoma workers in 29 occupations.
    A second category of projects involves the on-the-job training phase of the program, administered by the Bureau of Apprenticeship and Training.
    33
    This is the time-tested methods of training used traditionally by employers to meet their skill needs. Its role under the MDTA is related to equipment and instructors often available only at the plant site, and to a willingness on the part of participating employers not only to train an unemployed worker but to hire him on a full-time basis upon the completion of his course. Representing a smaller facet of the MDTA training program, the rate of growth in OJT activity during fiscal year 1964 was nevertheless highly significant in terms of its probable use in the future. Trainee approvals for these projects were fully six times as high as they were in fiscal 1963. Some 10,292 workers were approved for training in 740 separate projects. Participating employers numbered 328.
    A third phase of the MDTA program relates to the fact that many of the Nation’s hard-core unemployed are incapable of qualifying for either institutional or on-the-job training. Most frequently, these are the under-educated, non-English speaking, migrant workers, out-of-school and out-of-work youth, the handicapped, rural workers, and others who cannot qualify for training projects.
    For individuals such as these, the Department of Labor has developed, under the MDTA, special experimental and demonstration projects. In human terms, the experimental and demonstration concept means 500 school dropouts in Cincinnati being counseled and referred to the kinds of jobs best suited for them. It means 120 Negro and Puerto Rican boys in New York City being counseled and trained on a “ladder technique’’ basis, beginning as service station attendants and gradually progressing to higher skills. It means the coordination and study of comprehensive training projects for older workers in five States. It means a specialized program in New York for counseling and testing the emotionally disturbed unemployed.
    Experimental and demonstration projects, which are under the direction of the Department’s Office of Manpower, Automation, and Training, tripled in volume over the course of fiscal 1964. There were 27 approved, serving 20,107 individuals, as opposed to only 9 the previous year. Through this particular program, the Department hopes to learn more about specific kinds of unemployment, and thus develop knowledge that might prove of nationwide application.
    Closely allied to the experimental and demonstration program and also administered by the Office of Manpower, Automation, and Training is the Department’s broad program of manpower research. During the fiscal year, there were approved 40 new research projects dealing with a wide variety of problems in the interrelationship between automation, our modern economy, and our present employment and unemployment trends. Project studies dealt with such topics as management decisions to automate, new manpower requirements in the field of technical information, the formal training backgrounds of adult workers, the decisions of some unemployed workers to forgo training opportunities, and a number of similar areas directly affecting the Nation’s manpower posture. In its conduct of the
    34
    research program, the Department has drawn upon the best available resources of not only governmental agencies but private institutions as well.
    The Manpower Administration is also responsible for overseeing training activities carried out under the Area Redevelopment Act. Although ARA is a more modest program than MDTA in terms of retraining the unemployed, ARA trainees nevertheless totaled well over 34,000 by the end of the fiscal year, including 11,928 approved during fiscal 1964. Since the program’s inception, in 1961, unemployed workers in 180 depressed areas have benefited from the ARA’s training provisions.
    Two other developments in the Department of Labor’s manpower program were of special significance during the course of the year. To relieve a severe, national shortage of trained counseling personnel in the field of youth employment, the Department sponsored 8- to 10-week courses to train 2,000 counselor aides and youth advisers. These individuals were drawn from over 21,000 candidates for the course, and they received academic instruction at 27 universities around the country. Upon completion of their courses, they were to be referred to State employment service offices or to private agencies with particular interests in youth employment.
    A second program begun during the fiscal year involved special counseling and referral services for youths rejected by the Armed Forces. A prior study had indicated that about one in three of all individuals undergoing preinduction examination failed to meet either physical or mental standards. It was also found that these individuals were frequently unemployed. Under the new program, carried out in cooperation with the Selective Service System, draft rejectees are now automatically referred to their local office of the State employment service for job counseling, as well as to other public and private agencies which might be of assistance to them in planning their futures.
    The central question before the Manpower Administration, as it completed fiscal year 1964, was that of the Nation’s intensified need for accelerated job creation. While the economic upturn of 1962 and 1963 resulted in the addition of 2 million new jobs in the Nation, technological advance and expanded population growth make this task even more demanding in the years immediately ahead. During the final 5 years of this decade, about 18 million additional jobs will be required if we are to attain, by 1970, what can be termed a full employment economy. This requirement will continue to be the principal concern of the Manpower Administration.
    The respective reports of the three basic agencies of the Administration follow.
    35
    BUREAU OF APPRENTICESHIP AND TRAINING
    BUREAU OF APPRENTICESHIP AND TRAINING
    The Bureau of Apprenticeship and Training, operating through 275 field representatives in 12 regional and 156 field offices throughout the United States, promotes and helps develop and improve programs of apprenticeship and other on-the-job training in all crafts and other apprenticeable occupations.
    It administers and directs the on-the-job training portion of the Manpower Development and Training Act in cooperation with management, labor, and State and community agencies.
    It also administers a program of industrial training for foreign nationals in the United States under sponsorship of the Agency for International Development, the United Nations, the International Labor Organization, and other agencies.
    The Bureau sets guidelines for apprenticeship standards; it does no actual training. Apprentices are employed workers at progressive wage scales who gain practical experience and related instruction.
    Apprenticeship programs are the responsibility of industry. Local management and labor cooperate when workers are organized; management develops and directs the program alone when its labor force does not have organized representation. Labor-management apprenticeship committees oversee training in approximately 370 apprenticeable occupations.
    Most apprenticeships are of 4 years’ duration, although some terms are from 2 to 6 years. When their term is completed, apprentices are awarded certificates as journeymen.
    There were during the year an estimated 225,000 to 250,000 apprentices; about 163,000 were in programs registered under Federal or State agencies.
    During the year, 1,139 new apprenticeship and 992 industrial training programs were developed and installed in industry by the Bureau. These programs equaled about 8 million training weeks.
    A total of 3,650 apprenticeship and training programs were examined for program content and adherence to Federal apprenticeship standards. About 3,200 significant improvements in the organization, content, and administration of training programs were realized through Bureau efforts.
    Certificates of registration were issued to 1,145 programs.
    Certificates of completion were awarded to 6,465 apprentices.
    Special attention was given this year to the 758 locals of the International Printing Pressmen and Assistants Union, AFL-CIO. A total of 448 visits were made to such locals to help improve and expand apprenticeship programs and journeyman training.
    National apprenticeship standards were approved and adopted for
    39
    stationary engineers, operating engineers, the sign and pictorial display industry, and truck mechanics through the American Trucking Associations and the International Association of Machinists, AFL-CIO.
    A variety of Bureau publications were used in promotional and informational activities and nearly a half million pieces of literature were distributed. Bureau exhibits were displayed and representatives attended more than 30 labor and management conventions and conferences.
    EQUAL EMPLOYMENT PROMOTION
    Since adoption in January 1964 of Federal regulations (CFR 29, Subtitle A, Part 30) pertaining to nondiscriminatory practices in selection and operation of apprenticeship programs, all new apprenticeship registrations of programs by the Bureau—383 from January through June 1964—have been in conformance with the new regulations.
    Examples of selection procedures were issued as guidelines to aid in compliance. Five State plans were reviewed and one was approved during the year. More than a third of the remaining States which have apprenticeship councils have submitted plans for review by the U.S. Department of Labor Equal Opportunity Review Committee.
    The Bureau’s Advisory Committee on Equal Opportunity in Apprenticeship and Training held six meetings with the assistance of a newly appointed executive secretary and three full-time and eight part-time industrial training advisers.
    Four new apprenticeship information centers were established in Boston, Chicago, Cincinnati, and Detroit with the cooperation of the Bureau of Employment Security. These centers, pioneered in the District of Columbia, provide counseling service and aptitude testing for youth and serve as channels for placement with cooperating labor and management organizations. The emphasis is on qualifications alone, without regard to race, color, creed, or national origin.
    MDTA ON-THE-JOB TRAINING
    More than 10,200 unemployed and underemployed workers were scheduled for on-the-job training programs during fiscal year 1964 under the Manpower Development and Training Act. The Bureau negotiated and developed 328 contracts with employers, unions, employer associations, joint apprenticeship committees and city, State, and local governments to provide this training.
    Training in more than 100 occupations was represented. Training costs were set at $5,330,166 to be paid from Federal funds. Nearly $10,000,-000 in wages were scheduled for payment to trainees by employers under the contracts.
    40
    INTERNATIONAL ACTIVITIES
    Apprenticeship and training methods in 35 different industrial fields were observed by 79 labor and government officials from 26 foreign countries through itineraries developed and scheduled by the Bureau.
    Sixty participants completed training programs in the United States.
    Special labor and technical teams, 15 in number, completed special tours. They represented Indonesia, Bolivia, Turkey, Ryukyu Islands, and Venezuela.
    The Agency for International Development sponsored a tour of the Bureau’s administrator to eight Central and South American nations during the closing months of the fical year to create interest in apprenticeship and on-the-job training programs.
    PUBLICATIONS
    The Bureau’s research division published “The Training of Workers in American Industry,” providing for the first time an inventory of all types of training programs conducted or sponsored by private industry, and “Apprenticeship and Unemployment,” a popularized report on a technical study of the effects of economic change on the growth of apprenticeship in the United States.
    The Bureau also issued a promotional booklet on ‘ ‘On-the-job Training under MDTA,” as well as two national apprenticeship standards for newly registered programs.
    FEDERAL COMMITTEE ON APPRENTICESHIP
    The Federal Committee on Apprenticeship (representatives from labor, management, and education) advises the Secretary of Labor and counsels the Bureau. The committee held six meetings to consider subcommittee studies on apprenticeship, pre-apprenticeship, apprenticeship and defense contracts, and subsidies and apprenticeship.
    41
    Registered apprentices in training, new registrations, completions, and cancellations, 194-1-63 (adjusted to account for reporting revisions')
    Year	In training on Jan.1	New registrations 1	Completions	Cancellations 2	In training on Dec. 31
    1941		18,300 26,137 40,144 43,115 40,571 56,965 131,217 192,954 230,380 230,823 202,729 171,011 158,532 160,258 158,675 174,722 188,137 185,691 177,695 166,005 161,128 155,649 158,887 163,318	14,177 20,701 11,661 7,775 23,040 84,730 94,238 85,918 66,745 60,186 63,881 63, 055 73,198 58,970 66,747 72,869 58,463 50,134 63,679 58,129 48,889 55,590 56,992	1,289 2,011 1,715 2,122 1,568 2,042 7,311 13,375 25,045 38,533 38,754 32,752 28,378 27,176 24,445 26,508 29,760 29,824 35,741 30,920 28,282 25,918 25,900	5,051 4,683 6,975 8,197 5,078 8,436 25,190 35,117 41,257 49,747 56,845 42,782 43,094 33,377 26,255 32,946 31,149 28,306 39,628 32,086 26,086 26,434 26,661	26,137 40,144 43,115 40,571 56,965 131,217 192,954 230,380 230,823 202,729 171,011 158,532 160,258 158,675 174,722 188,137 185,691 177,695 166,005 161,128 155,649 158,887 163,318
    1942
    1943__
    1944
    1945
    1946.
    1947
    1948
    1949.
    1950
    1951
    1952
    1953
    1954
    1955
    1956
    1957
    1958
    1959*.
    1960
    1961
    1962
    1963 .	-----
    1964		 --

    ♦Major revision in reporting system effected this year.
    2 Cancellations are not synonymous with “dropouts” since they include layoffs, discharges, and out-ofState transfers as well as suspensions for military service and voluntary “quits.”
    42
    BUREAU OF EMPLOYMENT SECURITY
    Contents
    Page
    U.S. Employment Service.......................................... 48
    New program developments..................................... 48
    Placement and related services............................... 50
    Manpower development and analysis............................ 52
    Farm Labor Service............................................... 56
    Domestic farm labor.......................................... 56
    Foreign farm labor........................................... 58
    Wage activities.............................................. 59
    Unemployment insurance........................................... 60
    Financing benefits........................................... 60
    State legislation............................................ 62
    Conformity hearings.......................................... 64
    Training allowances.......................................... 64
    Research and information..................................... 65
    Administration............................................... 67
    Special activities............................................... 68
    Appendix tables
    1.	Selected employment service activities, U.S. totals for fiscal years 1956-64, by State for fiscal year 1964................. 69
    2.	Significant provisions in State unemployment insurance laws, June 30, 1964................................................ 70
    3.	Claims, beneficiaries, amount and duration of benefits under
    State programs, U.S. totals for fiscal years 1955-64, by State for fiscal year 1964...................................... 72
    4.	Subject employers, covered employment, and selected unemployment insurance financial data under State programs, U.S. totals for fiscal years 1955-64, by State for fiscal year 1964......................................................... 74
    5.	Selected data on unemployment compensation for Federal employees, U.S. totals for January-June 1955 and fiscal years 1956-64, by State for fiscal year 1964....................... 76
    6.	Selected data on unemployment compensation for ex-servicemen, U.S. totals for October 1958-June 1959 and fiscal years 1960-64, by State for fiscal year 1964....................... 78
    7.	Disqualifications under State programs, by issue, U.S. totals for fiscal years 1953-64, by State for fiscal year 1964...... 79
    749—199—65——4	45
    BUREAU OF EMPLOYMENT SECURITY
    The Bureau of Employment Security is the Federal partner in the Federal-State employment security system which encompasses two main programs— employment service and unemployment insurance. Under its basic legislation, the Wagner-Peyser Act and the Social Security Act, the system was designed primarily to obtain for applicants jobs which utilize their highest skills and capacities; to refer qualified employees to employers; to provide unemployment benefits as a partial replacement of wages lost during periods of involuntary unemployment, thus serving as a stabilizing influence on the economy by sustaining purchasing power; and to provide labor, management, government, and the public with labor demand and supply and other information available through the operations of the employment security program.
    As employment and related needs of the Nation’s labor force changed, other responsibilities were placed on the employment security system. In addition to the above functions, local employment offices in fiscal year 1964 assessed manpower supply and requirement problems; worked with educational and training authorities for manpower development, training, and utilization; and worked with community groups for area economic development and stability. The unemployment insurance machinery of the employment security system was utilized for disbursing funds to individuals being trained for work under the Area Redevelopment Act and the Manpower Development and Training Act; also, that machinery was readied to carry out responsibilities under the Trade Expansion Act for payment of relocation allowances and trade readjustment allowances to workers who may be found by the U.S. Tariff Commission to be affected adversely by actions taken under that act. The system provided supplemental foreign farmworkers to growers when domestic workers were not available and took appropriate action to insure that their employment did not affect adversely domestic workers similarly employed.
    The Bureau of Employment Security has a dual role. As a partner in the Federal-State relationship, its responsibility is to insure proper and efficient administration; to obtain, allocate, and insure proper expenditure of funds for administration of State employment security programs; to insure conformity of State laws and compliance of State administration with Federal requirements; and to provide leadership and assistance to the States in developing and carrying out a successful program. In its role as a Federal entity, the Bureau has more direct administrative and operational responsibilities. Among other functions, it makes recommendations with regard to Federal legislation; administers Federal unemployment compensation programs covering separated employees of the Federal Government and
    47
    ex-servicemen; operates a system for interarea recruitment of labor among the several States; maintains a public employment service for the District of Columbia; and performs activities related to the importation of foreign workers.
    Administrative costs for the operation of the programs are met from congressional appropriations, with 100 percent grants for program, administration apportioned by the Secretary of Labor to cooperating State agencies.
    This report describes both Federal and State efforts with respect to employment security, since the best measurement of Bureau activities is the effectiveness of the employment security program at national, State, and local levels.
    The Bureau carries out its program responsibilities through three services—United States Employment Service (which includes a Veterans Employment Service), Office of Farm Labor Service, and Unemployment Insurance Service.
    U.S. EMPLOYMENT SERVICE
    The Federal-State public employment service consists of the Bureau’s U.S. Employment Service (USES) and affiliated State employment services with their network of 1,900 local employment offices. The term “employment service’’ and the abbreviation “ES” as used herein apply to the joint Federal-State employment service.
    During the year, 10.9 million new applications for work were filed by jobseekers at local public employment offices, and those offices made nearly 6.5 million nonagricultural placements and over 7.1 million farm placements.
    New Program Developments
    Youth Services
    To help combat unemployment of youths under age 22, which averaged about 17 percent in the fiscal year, local ES offices registered approximately 3.7 million young men and women for employment and made over 1.5 million nonagricultural placements.
    Through the Manpower Development and Training Act (MDTA), vocational training opportunities were provided to about 27,500 jobless youths. To help meet the needs of many communities and of State and Federal agencies for trained counselors to work with disadvantaged youths, provision was made for training about 2,000 persons as counselor aides and youth advisers.
    Under a cooperative arrangement which began in February 1964 between the Selective Service System and State employment services, unemployed and underemployed young men who failed to meet education or intelligence standards of the Armed Forces were referred to local ES offices. By the end of the fiscal year, initial interviews were given to 28,572 Selective Service
    48
    referrals; counseling interviews to 22,193; referral and placement service to 13,824. Enrollees in occupational training programs numbered 328.
    By the end of fiscal year 1964, apprenticeship information centers were in operation in seven cities (Baltimore, Boston, Chicago, Cincinnati, Detroit, Philadelphia, and Washington, D.C.) with large numbers of unemployed youths. These centers were established in cooperation with the Bureau of Apprenticeship and Training to provide information and to screen, select, and help place young apprenticeship applicants.
    Special demonstration projects to provide better job market services to youths were continued in Detroit, Newark, and St. Louis. Emphasis was placed on providing continuity of contact with each youth by the same counseling staff member.
    Local ES offices have cooperative arrangements with high schools to provide group guidance, counseling, testing, and placement to students entering the labor force. In the 1962-63 school year, the ES worked with more than half of the Nation’s high schools, registering 586,529 seniors. Programs for working with dropouts were reported by 46 State agencies.
    Preliminary plans were made for establishing youth opportunity centers in cities where youth unemployment is a major problem, to serve as focal points for government and community efforts to aid all youths under 22 years of age to become employable and to find suitable work.
    Vocational Education Act
    Guidelines were developed for State agency agreements with State boards of vocational education, as called for in the Vocational Education Act of 1963. The guidelines provide for an exchange of labor supply and demand and training information by local ES offices and education agencies and for cooperation in counseling, testing, training, and placement.
    Immigration Activities
    As a result of arrangements with the Immigration and Naturalization Service (I&NS) and the Departments of Justice and State, under section 214(c) of the Immigration and Nationality Act, the ES began to implement its advisory role to I&NS by certifying as to availability of specific types of workers in the United States.
    Job Vacancy Information
    Experimental job vacancy surveys were made in the Chicago and Buffalo labor areas to collect data for use in economic analysis, planning manpower training and retraining programs, and identifying new job and placement possibilities. A series of 20 pilot projects was subsequently planned, in cooperation with the Bureau of Labor Statistics and the State employment security agencies concerned, to measure extent and nature of unfilled jobs by occupation and industry.
    49
    Professional Placement Services
    Services to professional and managerial personnel resulted in 249,100 placements.
    To insure college graduates the widest possible choice of employment opportunities, an agreement was reached with the College Placement Council, Inc., for public employment office services—when requested—to supplement those of college placement officers in the over 2,000 colleges and universities represented by the Council.
    Placement and Related Services
    Nonfarm placements in fiscal year 1964, at 6,454,000, were down 2.7 percent from the previous year. Professional and managerial placements, however, at 249,100, were up nearly 1 percent. Construction placements, at 462,000, the highest since fiscal year 1956, were up 1.3 percent, and placements in durables manufacturing, at 648,900, also rose 1 percent. Placements declined in other occupational and industry groups.
    Some 3,162,600 nonfarm placements were made in the 55 largest standard metropolitan statistical areas, a decline of 2.8 percent over the year. However, professional placements in those areas, constituting 72.3 percent of the national total in this occupational category, showed a 4.4 percent gain
    Nonfarm placements, by occupation and industry, fiscal years 1963 and 1964
    	Fiscal year 1964	Fiscal year 1963	Percent change in 1964
    Total*.			6,453,900	6,632,300	-2.7
    By occupation: Professional and managerial		249,100	247,500	4-0.7
    Clerical and sales		994,500	1,058,600	—6.1
    Service	— 	 -- -- 		2,093,800	2,145,200	—2.4
    Skilled		358,700	370,300	-3.1
    Semiskilled. __ — 			862,900	875,200	-1.4
    Unskilled		1,894,900	1,935, 500	-2.1
    By industry: Construction		460,600	454,900	4-1.3
    Manufacturing		1,403,100	1,438,400	—2.5
    Durable			 		648,900	643,000	4-0.9
    Nondurable	 - -- — - 		754,200	795,400	—5.2
    Public utilities	 		225,900	227,200	-0.6
    Trade	 	 — 		1, 522,600	1,560,300	-2.4
    Service		 — 		2,485,600	2,557,300	-2.8
    Government	 		201,500	232,300	-13.2
    All other		154,600	162,000	—4. 6
    * Items may not add to total because of rounding.
    Convention placement service, which brings together employers with job openings and interested applicants, was provided for 16 professional societies at their annual meetings—-a 45-5 percent increase from the previous year.
    Interarea Recruitment
    Testing continued of Project LINCS (labor inventory communications system), and the teletype network was expanded from 7 California stations
    50
    to 17—the 10 others being outside that State. This experiment in the use of automatic data processing and telecommunications was designed to accelerate and strengthen local and interarea placement operations and to expedite national interchange of work force supply and demand information. A basic computer program for screening large volumes of worker qualifications against employer job order requirements was completed; it performed successfully under actual operating conditions.
    Interarea recruitment was used in the placement of 161,535 workers; in assisting the International Labor Organization and other United Nations’ organizations to obtain applicants capable of providing technical know-how to other countries; and in recruiting teachers for dependents’ schools at Department of Defense installations.
    Minority Groups
    At the beginning of the fiscal year, barriers to completely desegregated service existed in seven local offices. By December 31, 1963, all local office facilities had been desegregated, and on-site evaluations were made to insure compliance with USES nondiscrimination policies.
    As members of a Department of Labor team, Bureau representatives and managers of local offices concerned visited almost 100 predominantly Negro colleges to discuss employment problems with the students, graduates, college presidents, and placement officers, and to describe assistance available through ES facilities.
    Employment service offices played a major role in the Plans for Progress program wherein many employers voluntarily signed pledges to provide equal opportunities for minority employees in hiring, promotion, and training. Contacts were made with these employers to develop job openings for Negro college graduates. The orders served a dual purpose—• as a source of job opportunities for the graduates and, for the schools, as an indication of the kinds of jobs for which major employers were seeking workers and the qualifications demanded.
    Of the nearly 100,000 trainees who had been enrolled in institutional MDTA courses by June 30, 1964, about 26 percent were nonwhite.
    Older Workers
    Over 1,306,000 nonagricultural placements were made of workers age 45 and over, and more than 121,000 such applicants received counseling services. Guidelines were developed for State agency use to implement Executive Order No. 11141, issued February 12, 1964, “Declaring a Policy Against Discrimination on the Basis of Age by Federal Contractors and Subcontractors.”
    Veterans
    Veterans filed more than 1% million applications for work at local employment service offices, representing 21.5 percent of all new job applications filed by men; however, they obtained more than 28.5 percent of all
    51
    nonfarm job placements. Disabled male veterans, representing 36.7 percent of the handicapped men who sought jobs through the employment service, were placed in 47.1 percent of the jobs filled by handicapped men. As more veterans crossed the 45-year mark, their employment problem became almost synonymous with that of other older workers.
    A special program was arranged with the Department of Defense for retired career military personnel, starting with on-base employment briefing sessions well in advance of retirement and, later, including employment counseling, aptitude testing, job information on selected cities and areas, and direct job-finding assistance.
    The Handicapped
    Applications filed by the handicapped with local ES offices decreased 2 percent, but placements increased 3 percent over the year to 281,142, mainly because of training provided under MDTA. Rehabilitated clients from vocational rehabilitation agencies accounted for 6,369 of the placements, a 10 percent gain from last year. Placements of disabled veterans rose 3 percent to 103,275.
    A survey of employment and related services being provided to 200 mental hospitals indicated a greater demand for such assistance than local ES offices could meet with available staffs. ES offices provided testing, counseling, and placement services to Selective Service rejectees and to social security disability claimants; assisted in placing released Federal prisoners; and promoted MDTA training for all handicapped applicants.
    Counseling and Testing
    Local offices reported 2,008,356 counseling interviews during fiscal year 1964, and 1,188,881 applicants counseled. Aptitude and proficiency tests were given to 2,337,758 persons. Of these, 761,700 were given the USES General Aptitude Test Battery.
    By the close of the fiscal year, 46 States had adopted separate counselor classifications, as recommended by the Bureau, but only 24 States fully met recommended standards. Nearly 1,000 counselors from 35 State agencies participated in out-service training courses at more than 100 colleges and universities. In addition, nine special institutes or workshop sessions for ES counselors were held on college campuses. Two universities established a master’s degree curriculum for employment service counseling.
    Manpower Development and Analysis
    Training Activities
    Employment service responsibilities under the Area Redevelopment Act and Manpower Development and Training Act include providing labor supply and demand data, making surveys to determine occupations for training, recruiting, and selecting trainees, assisting in the development of training programs, and helping to place “graduate” trainees. Under the
    52
    ARA, employment service responsibilities also include recommending areas for designation as redevelopment areas.
    By June 30, 1964, ARA training had been made available to eligible residents of 44 States, American Samoa, and Puerto Rico. During the fiscal year, more than 11,000 trainees enrolled in ARA training courses, in addition to the 2,500 trainees carried over from the previous year; over 9,200 completed their training. Over three-fourths of the graduates obtained employment, mostly in training-related occupations.
    Some 1,900 MDTA institutional projects for about 114,400 trainees were approved in 49 States, the District of Columbia, Puerto Rico, and the Virgin Islands during the fiscal year. Allowances and training costs totaled about $165 million, with nearly two-thirds earmarked for expenditure in fiscal 1964. About 70,000 trainees enrolled in training in over 1,600 projects during the year. About 70 percent of the 38,000 trainees who had completed MDTA courses between July 1, 1963, and May 1, 1964, had obtained employment by June 30, most of them in training-related jobs. Local offices made over 70 percent of trainee placements.
    Nearly one-third of the MDTA trainees were preparing for skilled occupations, over one-fifth for semiskilled, and nearly one-fifth for clerical and sales jobs.
    The December 1963 amendments to the Manpower Development and Training Act provided for up to 20 compensated weeks of basic education in addition to a maximum of 52 compensable weeks of occupational training; lowering the minimum age from 19 to 17 for youth training allowances; increasing the amounts available for youth training from 5 percent of total allowance payments to 25 percent of all trainees receiving allowances; increasing weekly training allowances by as much as $10 under some situations; permitting payment of allowances to trainees with 2 years of gainful employment and to members of families in which the head is unemployed; and providing for relocation assistance to workers on a pilot basis.
    The MDTA amendments made it possible to extend training to untrained, inexperienced youths as well as to provide basic literacy skills to those who would otherwise fail to qualify for occupational training.
    A new development—multioccupational training projects—accounted for about 40 percent of all trainees approved for MDTA training in fiscal year 1964. Trainees who required basic education, testing, and counseling were grouped together, were provided such training and service, and then were assigned to appropriate occupational training.
    Labor Supply and Demand, by Area
    Of the 150 major production and employment centers which the USES classifies monthly as to adequacy of labor supply, 37 in June 1964 were in categories reflecting substantial unemployment, as compared with 88 in June 1961 (the end of the first fiscal year in which monthly reporting was
    53
    instituted). The highest number of major areas in the substantial unemployment category was 101 in March 1961.
    	June 1964	June 1963	June 1962	June 1961
    Total, all groups (major areas)	 A (overall labor shortage) _ _ 	 _ 		150 0	150 0	150 0	150 0
    B (relatively low unemployment)			 -	19	16	10	0
    C (moderate unemployment) 	-	-			94	95	89	62
    D (substantial unemployment) 		 -	_	32	28	42	63
    E (substantial unemployment) _		 				3	9	6	17
    F (substantial unemployment)		2	2	3	8
    The USES also identifies smaller and very small areas of “substantial” and “substantial and persistent” unemployment. A total of 715 areas, including the 150 major areas, were so classified in June 1964, compared with 802 in July 1963- These areas were eligible for preference in the award of Federal procurement contracts under Defense Manpower Policy No. 4 and the Buy American Act, and for special low-interest Small Business Administration loans. Defense contract awards to firms located in substantial unemployment areas from April 1963 to March 1964 (latest data available) totaled $4.0 billion, with $167.0 million resulting from special “set aside” preference awards. Areas of “substantial and persistent” unemployment, identified by USES, were recommended by the Secretary of Labor to the Department of Commerce for designation as redevelopment areas under the ARA and for eligibility under the Accelerated Public Works Act.
    Because of concentrated unemployment problems in the central cities of large metropolitan areas, criteria were developed in cooperation with the Department of Commerce which permitted 9 cities of 250,000 or more population to be identified as eligible for ARA assistance.
    Labor Information, by Occupation
    During the year, more than 200 new or revised occupational guides were prepared by State employment services to provide basic information on job duties, requirements, and prospects, and to serve both counselors and individuals making occupational choices.
    The Bureau’s area skill program was initiated in 1956 to provide analyses of current and future labor demand and supply by occupation for a specific area. Such analyses are made by State employment security agencies with technical assistance from the Bureau. They are used as manpower planning guides by counselors, school administrators, and industry and other community leaders. By the end of fiscal 1964, a total of 169 area skill survey reports had been published, including 19 occupational indexes.
    Industry
    Manpower surveys were prepared for the bituminous coal mining, tires and tube manufacturing, department stores, meatpacking, machine tool,
    54
    and aerospace industries. These studies provided local offices with labor supply and demand information needed to carry out their operating responsibilities, and were useful for a variety of purposes at the national level.
    Labor Operations Research
    Thirty-four special studies of the characteristics of applicants and employers and the local office services provided to them were made by 19 State employment services. A new quarterly survey revealed that about 98 percent of verified nonfarm placements were of jobless workers.
    Occupational Analysis
    Preparation was almost completed of the third edition of the “Dictionary of Occupational Titles”—the first thorough revision since 1949. The new Dictionary, to be published before the end of fiscal 1965, will present current information on approximately 23,000 jobs and their requirements; a single classification structure; and job-related information, including training time, working conditions, and such worker traits as attitudes, interests, temperaments, and physical demands.
    The eight occupational analysis field centers studied jobs in a variety of industries to develop information on occupations affected by technological changes in industrial processes and equipment and by the development of new materials and products.
    Other job information projects to meet specific needs included a study of occupations in numerical control systems as applied to metal machining; a “Health Careers Guidebook,” covering occupations at all levels in health services and addressed to secondary school students and their counselors; and a guidebook for employment counselors, covering selected shortage occupations.
    Occupational Test Development
    A preliminary nonreading measure of general learning ability of the USES General Aptitude Test Battery (GATB) was developed for local office use in assessing the occupational potential of persons with limited education. A short, easily scored, objective screening device was also developed for counselors and interviewers to identify those persons for whom nonreading aptitude tests would be better measures of their abilities than the GATB tests requiring reading.
    Occupational validations of the GATB included occupations for which training courses were established under the MDTA and the ARA as well as occupations emerging from technological changes.
    A standardization study was completed on the Spanish-language edition of the GATB to make it more suitable for use in Puerto Rico.
    Community Employment Development
    Employment service representatives served as members of, or consultants to, about 4,000 local economic development organizations. Information
    55
    was provided on employment trends, unemployment problems, demandsupply relationships, occupational shortages and surpluses, and manpower requirements and resources. Special surveys and projections of community skill demands were prepared, when needed, for the guidance of manpower planners and educators.
    Representatives of ES offices participated in community efforts to expand existing firms, to attract new firms, and to secure job-generating governmental projects.
    Employment services were extended to 27 rural areas remote from local offices. Mobile teams of State ES personnel moved from one rural county to another, providing counseling and placement services and preparing inventories of skills—actual and potential—for use in determining needs for ARA and MDTA training programs, and in attracting new industry to a community.
    Manpower Mobilization Planning
    An interim edition of the national manpower plan for defense mobilization was completed for inclusion in the national plan of the Office of Emergency Planning. Agreement was reached with the Department of Health, Education, and Welfare on a list of skills directly concerned with health services in an emergency; establishment of several preassigned manpower teams and prepositioning of standby orders for key civilian personnel; and development of a conversion table for translating Classification Act and Department of the Army Wage Board job titles and codes to comparable DOT titles and codes.
    FARM LABOR SERVICE
    The demand for seasonal agricultural labor continued to shrink in fiscal year 1964 as a result of extensive use of farm machinery, pesticides, and herbicides, together with improved farm practices. This decrease in employment opportunities was reflected in the drop in farm placements made by State employment security agencies—from 7,100,000 in fiscal year 1963 to 6,300,000. A large part of the drop occurred in cotton producing States during the cultivation period, when improved weed control reduced average seasonal worker employment and thereby the number of pool-type day-haul placements.
    Although this report is issued on a fiscal year basis, the woikload figures that follow are for calendar year 1963, since agricultural activities do not lend themselves to reporting on a fiscal year basis.
    Domestic Farm Labor
    Placement Services
    Placement service was extended to 7,236,440 farmworkers in calendar year 1963, about 15 percent fewer than the number served in the previous year. The placement drop encompassed 39 States.
    56
    In farming areas located within commuting distance of population centers, day-hauls were used by many local offices to meet short-term labor needs. In day-hauls, workers were transported to and from job sites daily by means of private conveyances. About 68,900 workers were assembled daily in the 1963 agricultural season at day-haul points, supervised by local employment offices, for transportation to nearby fields. A total of 658 towns participated in the day-haul program, and another 1,400 towns had “established” day-hauls, for which local office representatives recruited and assigned workers on a seasonal basis. ES personnel visited such points periodically to insure that the program was operating effectively. Peak day employment for established day-hauls was 163,000 workers.
    Day-haul programs were established specifically for youth at 945points; in 178 towns, State agencies operated day-haul programs especially for young workers, with total workers on the peak day numbering 12,102; and young workers participated in varying numbers in day-hauls operated and established for adult workers.
    Another source of jobs to young people was “live in” employment. Local offices placed 2,241 youths in farm jobs where they lived right on the farm.
    “Farm employment days” were used in placing many year-round farmworkers. They provided a means, at a central location, for personal interviews between available workers in a local area and farmers who were seeking workers. In 1963, over 100 local offices participated in this program, holding 1,085 “farm employment days.”
    In small communities with a limited need for employment services, volunteer farm placement representatives were used to bring together job openings and workers. In 1963, over 2,650 such representatives in 25 States, working without pay and in close cooperation with public employment services offices, referred workers to 71,558 farm and related jobs.
    Nine States provided farm placement services to 21,446 Indians living on reservations.
    Employers in 12 States on the east coast and the Great Lakes contracted 13,040 farmworkers from Puerto Rico.
    In 10 wheat States, 1,750 employers benefited from State employment service coordination of the movement of wheat custom harvest machinery from one area to another within a State; and 4,763 employers, from movement of machines from one State to another. In 11 cotton producing States, 276 employers benefited from an area-to-area service entailing the coordinated movement of cotton harvest equipment; 129, from a State-to-State service. At the end of the fiscal year, the latter service was discontinued because enough machines had become available in most cotton areas to bring in the harvests.
    Migratory Farmworkers
    The Bureau and State employment security agencies continued to implement the interstate recruitment regulations of the Secretary of Labor.
    57
    Issued in December 1959, the regulations established standards designed to improve housing, working conditions, and transportation of migrant farmworkers.
    Under the annual worker plan, designed to provide consecutive seasonal farm jobs, the number of migrant groups served in calendar year 1963 increased slightly over the year to 10,310, but the number of workers dropped 3 percent to 167,548; the number of children under 16 accompanying adults rose 2 percent to 45,448; and the number of crew work schedules issued, at 8,319, was down slightly from 1962.
    Training Activities
    During calendar year 1963, there were 39 ARA and 106 MDTA agricultural projects approved to train 4,803 workers in 32 States and Puerto Rico, up significantly from the preceding year. About 80 percent of the graduates of such projects were placed in training-related jobs, the highest placement rate of trainees in any major occupational group.
    Foreign Farm Labor
    Aliens for Seasonal Farmwork
    Average monthly employment of foreign workers in the United States for seasonal agricultural employment in calendar year 1963 was 57,000— 14,000 below that of the previous year. The greatest number working at any one time was 105,000, about 17 percent fewer than in calendar 1962; the lowest number was 30,000.
    The decline in use of Mexican nationals, which began in 1959 and continued through calendar year 1963, accounted for nearly all of the decrease in use of foreign workers. Average employment of Mexican contract workers dropped from 60,000 in calendar 1962 to 46,000 in 1963; peak employment, from 111,000 to 90,000.
    A total of 186,865 Mexican nationals were contracted during calendar year 1963 under the Agricultural Act of 1949 and the Migrant Labor Agreement of 1951 with Mexico. They worked in 17 States for 26,405 farm employers. California growers, contracting 59 percent of the Mexican workers, led all other States in their use.
    Legislation governing the Mexican supplementary labor program under Public Law 78 was extended through December 31, 1964. The Migrant Labor Agreement with Mexico, covering operations under Public Law 78, was amended to provide for guaranty by the U.S. Government, in calendar year 1964, of an employer’s payment for social security to the Mexican Institute of Social Security.
    British West Indians and Bahamians were another source of workers for seasonal jobs in U.S. agriculture. Their monthly average employment, at 8,700, was down about 400 from the previous year. Their peak employment rose from 13,800 in 1962 to 14,900 in 1963. Florida growers contracted most of these workers.
    58
    Peak employment of Canadian workers in the U.S., principally for Maine’s potato crop, dropped slightly, from 8,700 to 8,400. About 1,200 Japanese, 100 Filipinos, and 1,100 Basque sheepherders also found seasonal employment in U.S. agriculture.
    Aliens for Permanent Farmwork
    To carry out provisions of section 212(a)(14) of the Immigration and Nationality Act, the Department of Labor was made the consulting agency to the Department of State in determining if aliens should be admitted for permanent farm employment in the U.S.
    Under the new procedure, which went into effect July 1, 1963, the Department of Labor was consulted when one or more aliens made application for entry. During calendar year 1963, it certified against entry of 3,791 individuals for work in U.S. agriculture, after determining that the job offer was not bona fide; that the work was not permanent in nature; that the entry of the alien would adversely affect domestic workers similarly employed; or that there were qualified domestic workers available to fill the job offered.
    Compliance Activities
    Farm labor service representatives of the Bureau made 50,362 field inspections during calendar year 1963 to insure compliance with the Migrant Labor Agreement and the work contract of the Mexican supplementary labor program, and to investigate complaints and other matters related to the program. Inspections were made of housing, food service, transportation, and payroll and general recordkeeping. Investigations revealed over 5,000 deficiencies.
    Wage Activities
    Farmworkers referred in response to interstate clearance orders must be paid rates no less than those prevailing in areas of employment. Foreign agricultural workers must receive the rate set forth in their contracts or the rate determined to prevail among U.S. workers similarly employed in the area—whichever is higher. To insure these aims, there were 1,197 determinations and findings of prevailing wages being paid in 1963. These were based on 2,071 individual surveys conducted by the State employment security agencies.
    Increased emphasis was placed on insuring that employment of foreign agricultural workers would not affect adversely U.S. workers similarly employed. Investigations were made of possible adverse effect in areas of foreign worker employment. Wherever possible, voluntary employer adjustments in wages and working conditions were achieved. In several instances, the Secretary of Labor issued determinations specifying rates below which the employment of foreign labor would adversely affect the wages and working conditions of U.S. farmworkers.
    59
    UNEMPLOYMENT INSURANCE
    About 48 million workers in commerce, industry, and government, including the Armed Forces, were covered under the unemployment insurance program in fiscal 1964. In addition, 785,000 railroad workers were insured against unemployment under a separate system.
    Nearly 2.4 million employers subject to State unemployment insurance taxes paid about $3 billion in fiscal year 1964. This amount included taxes paid by employees as well as employers in Alabama, Alaska, and New Jersey.
    About $2.8 billion in benefits was paid to 6.1 million insured workers for 80 million weeks of unemployment during fiscal year 1964. Of this total, $2,642 billion was paid from State funds to workers insured under State laws and about $153 million from Federal appropriations to former Federal civilian and military personnel. Beneficiaries under State programs received an average weekly payment of $35.59; average duration was 13.2 weeks for all beneficiaries and 21.7 weeks for those who exhausted their entitlement. The improved economic situation resulted in a reduction from the previous year in insured unemployment and in benefits paid, despite an increase in the number of covered workers and in employers subject to the State unemployment insurance laws. The only exception to this trend was an increase in number of Federal civilian beneficiaries and the benefits paid to them. The closing of a number of obsolete military bases accounted for some of the increase. State reserve funds for payment of benefits increased for the third successive year to the highest point since the end of fiscal year 1958.
    The Virgin Islands began payment of benefits in January 1964 in accordance with provisions of the Virgin Islands unemployment insurance law, the initial phases of which became effective in 1961.
    No action was taken by the Congress toward enactment of legislation, proposed by the Administration, to broaden coverage, increase the taxable wage base, liberalize benefit and training provisions, and provide for treating long-term unemployment as a national problem.
    Financing Benefits
    The favorable economic condition which had existed since the end of the 1960-61 recession was reflected by an over-the-year upward movement cf State reserve funds—the third successive yearly rise—by 8.9 percent to $6.8 billion. This amount was 5.0 percent of taxable wages and 2.9 percent of total wages for the fiscal year, compared with 4.8 percent and 2.9 percent, respectively, a year ago. Contributing to the rise were increased tax collections, resulting from higher aggregate taxable wages rather than from changes in tax rates, and the downtrend in benefit payments. (The national average tax rate was 2.3 percent of taxable wages in calendar years 1963 and 1964, compared with 2.4 percent in 1962. It was 1.3 percent of total wages in 1964, compared with 1.4 percent in 1962 and 1963.)
    The nearly $550.9 million increase in reserve funds for fiscal year 1964 resulted mainly from tax collections of $3 billion and $207.8 million in
    60
    interest earned on invested funds less $2.6 billion paid in benefits to the insured unemployed.
    A question of continuing concern was whether unemployment insurance reserve funds were adequate to meet benefit payments in a recession period. Financing of the unemployment insurance program on a reserve-fund basis is a method by which that portion of benefit costs which exceed current tax income during periods of business recession is financed from reserve funds that are accumulated during more favorable periods. Experience in recessions which generally cover a period of 18 months or more has shown that benefit costs generally amount to one and one-half to two times the highest cost of any 12-consecutive-month period. Total reserve funds of $6.8 billion on June 30, 1964, amounted to 2.9 percent of total wages, but they were equal to only 1.48 times the highest 12-month benefit cost (benefits as a percent of total wages) during the last decade. This compares with a multiple of 1.42 a year ago. On the basis of a minimum reserve level equal to 1^ times the highest 12-month benefit cost, the reserves of 23 States would have been inadequate to meet the cost of a full recession period paralleling any which occurred in the 1950 decade. Eight States had a multiple of less than 1. A multiple of at least 2 was indicated for 21 States; 8 States had a multiple of 3 or more; and 3 States had a multiple of 4 or more.
    The Federal Unemployment Account is built up and maintained from excess Federal tax collections over administrative expenses and is available for loans to States with low reserve funds. The balance in the account is limited to the greater of $550 million or 0.4 percent of the aggregate of the calendar-year taxable wages of all States. At the end of fiscal year 1964, the balance was $85 million—nearly $63 million more than a year earlier. No new loans were made, but $20.8 million was repaid by the three States which had borrowed in previous years a total of $233,765,000. Of the amount still due the account ($205,368,219), Alaska owed $8,089,293; Michigan, $97,829,926; and Pennsylvania, $99,449,000. Under the automatic provision of the loan, repayment began for each State with the taxable year of the fourth January 1 after the date of initial advance. For Alaska, that year was 1961; for Michigan, 1962; and for Pennsylvania, 1963.
    At the end of 1963, Congress passed legislation (Public Law 88-173) which froze the Federal tax increase for automatic restoration of loans at 0.15 percent for the 5 years 1963-67. After that, the Federal tax will increase 0.15 percent each year (0.30 percent on 1968 wages, 0.45 percent on 1969 wages, etc.). In addition, the tax rate for repayment provisions of the advances made to the States for recession benefit payments under the Temporary Unemployment Compensation Act of 1958 was frozen at 0.30 percent for 1964 and subsequent years until the funds are repaid. Under the new legislation, States may make installment restoration in lieu of increased employer taxes.
    In 1961, Congress enacted a temporary increase of 0.4 percent in the Federal tax on 1962-63 wages, in order to finance benefits paid under the
    749-199—6!
    -5
    61
    Temporary Extended Unemployment Compensation Act of 1961 which expired June 30, 1962. This temporary tax was reduced for 1963 (collectible in 1964) to 0.25 percent. A total of $306 million was collected in fiscal year 1964, representing final collections under the program.
    State Legislation
    Financing Legislation
    Two States, Arizona and Pennsylvania, increased their taxable wage base from $3,000 to $3,600. Arizona’s law becomes effective in the next fiscal year, on January 1, 1965- Hawaii changed, to a flexible taxable wage ceiling of 90 percent of average earnings in covered employment for the year (also effective January 1, 1965). As a result of legislation enacted in fiscal 1963, the taxable wage base increased on January 1, 1964, in Pennsylvania and Vermont from $3,000 to $3,600 and in Utah from $3,000 to $4,200. At the end of the fiscal year, 16 States were providing for a taxable wage base above the $3,000 ceiling specified in the Federal Unemployment Tax Act. Other substantive developments included changes in the tax structure of four States (Hawaii, Maryland, Ohio, Pennsylvania), a change in the experience-rating plan of Mississippi, and a reserve adequacy measure in Ohio related to potential liabilities.
    Weekly Benefit Amount
    To keep pace with rising wage levels, four States and Puerto Rico increased the maximum basic weekly benefit amount—Arizona, $35 to $43; Maryland, $38 to $46; Pennsylvania, $40 to $45; Virginia, $34 to $36; and Puerto Rico, $16 to $20. Increases of $1 or $2 in the maximum benefit became effective in 10 Other States that had previously adopted such provisions. For the first time in 4 years, no State adopted a provision for automatic adjustment of the maximum weekly benefit as average wages change.
    Maximum basic weekly benefit amounts, as of June 30, 1964, ranged from $20 in Puerto Rico to $55 in California and Hawaii. Twenty-six States, with 59.3 percent of the covered workers, had a maximum of $40 or more; in eight States, with 30.3 percent of the covered workers, the maximum was $50 or more. The maximum was less than $35 in 10 States with 12.1 percent of the covered workers. (In States which include dependents’ allowances, the “basic” weekly benefit is the benefit for a claimant with no dependents, as defined by law.)
    Maximum basic weekly benefit amount, through June 30,1964
    Number of States
    Percent of covered workers (calendar year 1963)
    Percent
    Cumulative percent
    $50 and over ($50-$55)_____________________________________
    $45-$49______________________________________________________
    $40-$44______________________________________________________
    $35-$39_______________________________________________________
    $30-$34______________________________________________________
    Under $30____________________________________________________
    8
    9
    9
    16
    9
    1
    30.3
    16.0
    13.0
    28.6
    11.5 .6
    30.3
    46.3
    59.3
    87.9
    99.4
    100.0
    Total.
    52	100.0
    62
    Under the benefit formulas of most States, workers were compensated at about one-half of their weekly wages if their benefit amount was below the maximum dollar amount specified in the State law. Maximums failed to keep pace with increases in wages. Therefore, for many workers, as their weekly wages rose, the State ceiling on benefits resulted in a progressively lower ratio between their weekly wage and the benefit they received when unemployed. At the end of fiscal 1964, the maximum benefit represented 50 percent or more of average weekly wages in only 12 States with 7.9 percent of the covered workers. In calendar year 1963, over half of the claimants in 21 States were receiving the maximum benefit; in 14 of these States, 60 percent or more received the maximum benefit. Thus, many of these workers must have been earning more than double that amount when they were working.
    Maximum basic weekly benefit amount, through June 30,1964, as a percent of average weekly wages in calendar year 1963
    Number of States
    Percent of covered workers (calendar year 1963)
    Percent	Cumulative percent
    61-----------------------------------------------------------
    50-54________________________________________________________
    45-49________________________________________________________
    40-44________________________________________________________
    35-39________________________________________________________
    30-34________________________________________________________
    Under 30_____________________________________________________
    1
    11
    8
    16
    10
    4
    2
    0.4
    7.5
    30.0
    31.1
    16.3
    10.3
    4.4
    0.4
    7.9
    37.9
    69.0
    85.3
    95.6
    100.0
    Total.
    100.0
    Duration Provisions
    Virginia increased its maximum duration from 24 to 26 weeks; however, only claimants qualifying for the maximum weekly benefit amount became eligible for 26 weeks. Pennsylvania changed from a uniform duration of 30 weeks to a variable duration of 30 weeks or 50 percent of the claimant’s earnings during his base period, whichever is less. It also provided a program of extended benefit payments up to 50 percent of a claimant’s maximum award. That program will be triggered when exhaustees in the preceding weeks exceed 1% percent of the average number of employees in covered employment during the 12 most recent months for which such data are available.
    Maximum duration, as shown in the following table, ranged at the end of the fiscal year from 12 weeks in Puerto Rico to 39 weeks in Oklahoma. Forty-nine States, with 98.1 percent of the covered workers, had a maximum potential duration of 26 weeks or more. Uniform duration was provided in nine States, with 18.9 percent of the covered workers. In the other States, which varied duration of benefits with a worker’s base-period wages, maximum duration ranged from 22 weeks to 39 weeks.
    63
    Maximum duration in weeks
    Number of States
    Percent of covered workers (calendar year 1963)
    Percent
    Cumulative percent
    Uniform duration:
    26____________
    12____________
    Variable duration:
    39_____________
    36_____________
    34____________
    30_____________
    28_____________
    26_____________
    24____________
    22_____________
    Total________
    1
    1
    2
    4
    1
    32
    18.3 .6
    .9
    .5
    2.9
    12.4
    1.3
    61.8 .2
    1.1
    18.3
    18.9
    .9
    1.4
    4.3
    16.7
    18.0
    79.8
    80.0
    81.1
    100.0 _______________
    8
    Conformity Hearings
    A hearing was held involving the conformity of the New Hampshire unemployment insurance law, and its administration, to the requirements in the Federal Unemployment Tax Act and the Social Security Act. Under this law, the New Hampshire agency, in cases in which a claimant was represented successfully by his attorney in court, sent on request the claimant’s benefit checks to his attorney. To be in conformity with Federal laws, a State law must provide for methods of administration which are reasonably calculated to insure full payment of benefits when due; it also must provide that money withdrawn from the unemployment fund be spent solely for the' payment of benefits to qualified individuals. After negotiations failed to resolve the issue, a hearing was held on May 12 and 13, 1964. Because of the varying practices in the States relating to delivery of checks to persons other than claimants, the Secretary, on July 29, 1964, dismissed the proceedings and directed the Bureau to make a thorough study of such State practices and to submit to him a proposed standard which would be applicable to all States.
    Training Allowances
    Approximately 54,700 MDTA trainees received allowances totaling $29,-552,277 under the Manpower Development and Training Act during fiscal year 1964. For this same period, $2,362,515 in retraining subsistence allowances was paid to some 11,400 trainees under the Area Redevelopment Act.
    Public Law 88-214, approved by the President on December 19, 1963, contained the following amendments to the Manpower Development and Training Act: (1) To reduce the employment experience requirement for entitlement to training allowances from 3 years to 2 years; (2) to extend entitlement to training allowances to one member of a household (other than youths receiving youth training allowances) when the head of the household is unemployed; (3) to provide for augmentation in the weekly training allowance up to $10 over the regular training allowance payable in a State; (4) to permit the first 20 hours of part-time work of a trainee
    64
    undergoing institutional training to be disregarded in computing the amount of training allowance payable to him; (5) to permit the payment of a training allowance to youths 17 to 22 years of age (previously 19 to 22) under certain conditions; (6) to change the former ceiling of 5 percent of the total funds for youth training allowances to 25 percent of the total trainees receiving allowances; and (7) to permit an additional 20 weeks of allowances in basic education training.
    In addition, the amended act provided for establishing a limited number of labor mobility demonstration projects. These pilot projects were designed to increase the mobility of unemployed workers and to provide information for assessing the effectiveness of such assistance in reducing unemployment. New section 208 of the act authorized the Secretary of Labor to provide relocation assistance in the form of grants or loans to involuntarily unemployed workers who could not reasonably be expected to obtain full-time work in the communities in which they lived and who had bona fide offers of permanent nonseasonal work elsewhere which they were qualified to perform. Assistance provided in the form of a grant could not exceed 50 percent of the transportation expenses of the worker being relocated and his family and their household effects. A person approved for a loan (or combination of loan and grant) could receive the total amount of such expenses. Not more than 2 percent of the funds appropriated to carry out the title, or $4 million, whichever is less, could be used for the purposes of section 208.
    The amended act further provided for extension to June 30, 1965, of 100 percent Federal financing of MDTA training costs. It reduced from one-half to one-third the costs to be borne by a State beginning July 1,1965, but after June 30, 1966, a State must bear one-half of the training costs.
    To implement the new MDTA amendments, the Bureau’s Unemployment Insurance Service prepared specifications for amended regulations, issued preliminary instructions to State employment security agencies for the payment of allowances under the amended act, developed operating procedures in handbook form, and revised outlines for evaluation of State agency operations.
    Activity of the Unemployment Insurance Service with respect to trade readjustment allowances under the Trade Expansion Act of 1962 was limited to advising State agencies of the status ot worker, firm, and industry petitions filed with the U.S. Tariff Commission. Up to June 30, 1964, 15 petitions for finding of adverse effect due to increased imports had been filed with the Commission since the enactment of the Trade Expansion Act of 1962. Twelve petitions had been denied; one firm petition and two industry petitions were still pending.
    Research and Information
    UI Program Research
    The continuous history of a sample of workers in and out of claimant status was recognized as a valuable source of information about employment
    65
    and unemployment patterns as well as a basis for such additional research as benefit entitlement studies, claimant characteristics, and depth studies of special groups of workers. Such data are available from records maintained by most States from employer reports. By June 30, five States had established continuous wage and benefit history files, and others were planning to begin them in fiscal 1965.
    Benefit entitlement studies were in progress in 12 States, compared with 9 States the previous year. These studies involve compiling for samples of covered workers a quarterly record of earnings in covered employment over a 3-year period. The data compiled are useful in evaluating qualifying requirements of State laws and in assessing the labor force attachment of covered workers.
    Extension of coverage to workers in noncovered employment was the subject off 11 studies planned or underway in 8 States. Three of these studies are concerned with State and local government workers, three with employees of nonprofit organizations, and three with business concerns employing one or more workers. The remaining two studies are on the feasibility of covering farmworkers, with one study nearing completion and the other at the beginning stage.
    Seven State agencies had studies in progress during the year on the labor force experience of workers after exhaustion of their unemployment insurance benefit rights. These States were using the Bureau’s postexhaustion study guide to analyze the extent to which their laws provided protection to the longer term unemployed. Eight other related studies were planned or were underway. Three States completed studies in the area of disqualification and nonmonetary determinations research; 17 other studies were underway. Other research completed or in progress during fiscal year 1964 concerned adequacy of benefits, dependents’ allowances, benefit formulas, claimant characteristics, and successive-benefit-year claimants.
    Work continued on findings from the studies of beneficiaries under the Temporary Extended Unemployment Compensation (TEUC) Act of 1961. Publication of national and State data on TEUC exhaustees in December 1963 brought to an end the series of seven general reports entitled “Family Characteristics of the Long-Term Unemployed.” The exhaustee report was based on samples of individuals interviewed in 1 of 4 survey weeks spaced at 16-week intervals during the TEUC program. It consisted of tabulations and an analysis of information about claimants who exhausted TEUC benefits during the life of the program 6April 1961-June 1962).
    Through the cooperation of the Bureau and six State agencies, progress was made in the following tabulations and analyses of TEUC data: Educational characteristics of TEUC claimants in all States; financial resources and household adjustments of TEUC and regular program claimants in 13 States; work history of claimants after using up their TEUC benefits (.13 States); family characteristics and work experience of a control group of
    66
    regular program claimants (13 States); and family characteristics and work experience of beneficiaries filing interstate TEUC claims (4 States).
    In addition to TEUC reports based on national data, 13 State employment security agencies published one or more reports based on results of the surveys of their long-term unemployed. Some of these States had other plans to continue analyzing the data and to publish, other reports.
    To provide a basic source of information on the long-term unemployed for study by both public and private research organizations, the Bureau requested from all State employment security agencies the punchcards which reflected detailed interview data for each claimant surveyed during the four TEUC family characteristics study surveys conducted in 1961-62. The Upjohn Institute for Employment Research undertook to explore the basis for a large-scale project to tabulate in depth the information contained in the cards.
    Benefit Financing
    To help in planning for sound financing, State agencies increased their research into various financial aspects of the unemployment insurance program. Five of the most popular research areas were: (1) Forecasts of benefit cost levels over a period of years; (2) eflect of taxable wage base limitation on amount of taxes collected from different industries and different types of employers; (3) impact on tax income of benefit costs that do not enter the rating process, e.g., benefit payments not charged to any employer; (4) experience-rating techniques and operations; and (5) measures and indicators of reserve fund adequacy that include “ trigger” points for signaling the suspension of reduced rates or making effective alternative tax schedules.
    Administration
    Benefit Payment Controls
    The Bureau continued to work with the States in development of effective benefit payment controls to prevent both fraudulent and nonfraudulent overpayments. Studies were devised for obtaining operating statistics on causes of nonfraudulent overpayments; methods were improved for discovering fictitious employer accounts; and controls were strengthened to insure proper payment of dependents’ allowance claims.
    Data Processing
    Fourteen State agencies installed or expanded their electronic data processing systems during the fiscal year; nine had plans underway for doing so in fiscal 1965. The full significance of the need to mechanize procedures can be grasped in relation to the tremendous amount of paperwork involved each year in State central and local offices. In fiscal year 1964, 98 million claims were taken and 8 million monetary determinations were processed; in fiscal year 1963 (the latest for which data are available),
    67
    384,000 appeals, 6 million nonmonetary determinations, 10 million tax returns, and 132 million wage record items were processed.
    SPECIAL ACTIVITIES
    In the area of administration and management, the Bureau provided technical and training assistance to State agencies to increase the effectiveness of their staffs and of management and operations; to attract and retain young supervisors with a potential for executive positions; and to correct deficiencies discovered through evaluation studies. Of top priority was the need to increase the competence of State employment service counselors. Specialized counselor classes were established in many States, qualification requirements and salary levels were raised, and extra effort was directed to recruiting better qualified candidates.
    The growing complexity of the employment security program and the need to identify responsibilities for ES and UI functions in most metropolitan areas prompted organizational separation of unemployment insurance and employment service functions, whether or not the operational staffs were separated physically. In major metropolitan areas where separation was in effect, further refinements were made. In addition, assistance was given to State agencies in the reorganization of 10 local offices serving areas having a population under 500,000.
    A study was undertaken of the potential for mechanizing clerical, reporting, and accounting activities in the employment security system. Represented on a task force, charged with developing a master plan for converting manual operations to machine methods, were a staff member of each service in the Bureau and a State agency representative. That group visited selected local and State offices and regional offices of the Bureau to study mechanized operations and to obtain suggestions on application of machine processes. April 15, 1965, was set as the date for the task force to make its report of findings to the Bureau administrator and to submit short- and long-range recommendations for the conversion of operations and the acquisition of equipment.
    Progress was made in mechanizing budget and fiscal operations in the Bureau’s national office. Forms used in the budget process were machine-produced, not typewritten, and budget information was machine recorded and stored for later retrieval. Being developed wTere an accounting system to utilize machine methods and a financial management information program to provide administrative officials throughout the employment security system with current fiscal data useful in decision making.
    In January 1964, the Bureau began publishing two new monthly periodicals—“Employment Service Review” and “Unemployment Insurance Review”—and discontinued, with their December issue, three periodicals— “The Labor Market and Employment Security,” the “Employment Security Review,” and “The Insured Unemployed.” Each new publication was designed to inform those in the program and interested outsiders of
    68
    all aspects of the program and its operations. Detailed statistics on employment service operations and the work force were published separately in a monthly "Statistical Supplement,” and those on unemployment insurance in a separate monthly report, "Unemployment Insurance Statistics.”
    Appendix table 1.—Selected employment service activities, U.S. totals for fiscal years 1956-64, by State for fiscal year 1964
    Year and State	New applications 1	Total counseling interviews	Individuals tested	Placements
    				Nonagri-cultural	Agricultural
    1955-56		8,083,024	1,444,669	1,314,134	6,173,684	9,248,459
    1956-57		8', 546; 028	i; 507,825	1,448,607	5; 957,490	9,002,052
    1957-58		10,412,879	i; 542; 846	i; 349; 924	5,235,910	8,709', 763
    1958-59		9,368;746	i; 734', 170	1,609,536	5; 703,458	9,615,163
    1959-60		9; 598; 604	1,785,541	1,760,754	6,082,753	9,747,116
    1960-61 		10; 605,108	i; 783,310	1,799,730	5,591,089	9; 004; 319
    1961-62		10; 413,532	2', 020; 549	2; 176; 709	6; 506; 008	9; 028', 451
    1962-63		Hi 045; 696	2,088,332	2,300,436	6,632,252	7,923,543
    1963-64		10; 924; 071	2', 008,356	2,337,758	6,453,858	7,124,933
    Alabama		 - 		143,762	18,662	39,262	120,060	71,297
    Alaska		19; 650	3,529	7,545	11,900	'315
    Arizona							130; 421	18', 194	22,500	109; 219	814,996
    Arkansas			-	153,936	27,472	35; 292	114,309	169,340
    California		1,529,658	189,667	226,408	756,952	274,408
    Colorado			 - ..	' 129; 924	20; 612	30,447	91,310	62,642
    Connecticut- 		 		188,644	31,157	29,358	88,960	10,112
    Delaware				19, 358	4; 100	8; 176	6,628	4,118
    District of Columbia 	 -		68; 823	23,453	20, 882	44,600
    Florida 		234;614	30; 196	54', 680	258;410	174,829
    Georgia	 __		 —	195; 696	3i; 962	41,437	162; 354	60,407
    Guam 		i; 735	1	32	697
    Hawaii	 -			41', 811	5,380	6,990	13,658	1,991
    Idaho _ 		-		52; 884	9', 738	11,786	37,673	121,426
    Illinois 				404,348	88,130	113,068	199,825	55,058
    Indiana .. 			266; 243	37; 055	58; 197	lli; 234	41,353
    Iowa						102; 424	20; 058	35,025	86,382	32,765
    Kansas		 		100, 544	22; 839	27,184	80,925	18,854
    Kentucky			-		-	155; 889	37', 918	53,393	62,175	92,083
    Louisiana - 		130,761	20,113	28,724	89,243	111,858
    Maine 	 		49; 669	14; 371	14,583	24; 237	8,533
    Maryland -				164,887	26,807	25; 783	89,601	100,568
    Massachusetts			334,731	65; 249	54,356	163,966	44,408
    Michigan 				579,858	62,649	90; 091	183,736	91,021
    Minnesota	 		187,085	22,979	54,328	92,006	31,945
    Mississippi				139,382	38, 359	42,327	106,978	1,323,762
    Missouri			230; 089	43, 700	62,200	103,027	166,086
    Montana		 		49; 967	17,806	16,697	32,415	34,322
    Nebraska		56,709	17,863	25; 895	55,048	24,884
    Nevada 				-	-	45; 889	5,229	7', 655	31,511	5,524
    New Hampshire	 		- 			42', 044	7,729	8,520	16,290	4,102
    New Jersey	._	- 		339', 113	43; 782	39,127	143,561	126,572
    New Mexico	 				60', 174	12,489	17,204	42,280	16,769
    New York				920,233	23i; 390	143', 749	834,508	125,264
    North Carolina	 		258,422	43; 291	65,816	144,321	567,471
    North Dakota—		 		39; 270	5; 619	12,666	28,998	15,833
    Ohio 				546,392	80; 116	105,638	216,456	178,277
    Oklahoma	 		138', 585	34; 759	35; 266	169,149	94,126
    Oregon 	 		140; 262	34; 851	29,454	72,972	276,264
    Pennsylvania	 			566; 958	173; 523	113,107	259,006	296,622
    Puerto Rico					188,477	29', 661	23,262	47,722	11,042
    Rhode Island			- -	- 		52; 060	12,758	Hi 730	30,186	132
    South Carolina			110,538	14,509	35,522	77,971	124,600
    South Dakota					30; 421	L 440	io; 413	23,941	11,436
    Tennessee	 				-	154;072	25; 329	66,749	116,667	628,399
    Texas -				699; 121	126; 055	151,902	505,807	389,021
    Utah		53; 716	15; 632	29,184	40,824	24,718
    Vermont 		22;667	2,627	4,082	14,075	1,412
    Virginia 		148; 901	4i; 057	46,638	109,426	50,166
    Virgin Islands. - 		2; 658	'887	581	1,402	5
    Washington 				202,982	38,784	51,629	84,655	188,335
    West Virginia.			81,151	24; 193	18,249	39,715	7,593
    Wisconsin					195,963	42,659	70,224	90,039	29,648
    Wyoming				20; 500	3; 968	2,745	14,848	8,221
    i The number of applications taken should not be interpreted as a measure of the total number of new job applicants at employment service offices since there are some types of applicants for whom written applications are not taken.
    69
    Appendix table 2.—Significant provisions in State unemployment insurance laws, June 30, 1964*
    70

    88888888 gggggSgg i — £ a
    88888888 1
    88888888 goggggg

    88888888 1
    ?
    i 3	- :	H 8 1	i Jg	8
    88888888
    71
    Appendix table 3.—Claims, beneficiaries, amount and duration of benefits under State programs, U.S. totals for fiscal years 1955-64, by State for fiscal year 1964
    [Note: Data for fiscal years 1955-59 Include activities under the program of unemployment compensation for Federal employees and represent an unduplicated count for both
    Claimants exhausting benefits	1 Percent	oi an beneficiaries *											a^OOOHOO-tf Xr <8	Actual	33333SS233										ONOJ^OCOCS							D	^3*		3S22dSS							S22^
    Average	§ ua	Potential	•
    IL	1 Percent of	average weekly (total) wages	Ct0C»NOaeOCWa 33^55^3
    	Amount
    	wage in covered	employment	ssssssssss
    <	weekly benefici-	8 3	IfSWSgsl r-T rtVrtrtCirtr00 b-(NweicS			|Q CC		WLQOXOOO^^TfiH e4oic4c4^CQiQCQiQM
    Average w sured unem	Number
    Initial claims 1
    Year and State				3		i	1			I	i	I		1				1		!	District of Columbia	—1 Florida				i	I	1					1 5	-t	i li
    72

    gWS^cig^
    3
    1
    . 2
    OJCOOOOOON^NOIOOCO W^OOtNCOOCDOiaOiOCD^ o
    assssssas^&s^ssssssssss^gs
    W WaiX^^COQOONOiO^iOOQtNCD^HX^HClOCOCQOO
    asssasssssssssss^srisssss^^sss

    33332333B35333S33333333S33233
    38SSS3S3£S3§S38S5i3SSS8S!3fcSSS2g gSS?SS3§§^SS^^§Sg33S^SSgS^S?S^g§
    SS3SSSKg3SS35SSg3§S3S5S2SS3^gg
    gSSgS^Sg^555Sg§S§8^SgS8SS^§gS^
    SgS
    3S3§S§2§§S§g3§§l§§^§S§SS§S§§S
    £i§§S§^8gg|§|g§§£:Sg§^§§gB§
    g8353g?a8^
    O’^^C0'^l’^r-«Clt^Oi>OC^r-<'MTf4cDcOO'^CMiCQOO
    		Amount (000)	CO OOOO N® CQ1O U5 to (O'						KYS S § S K S S IS 8	S S S S 8 S g S' 2 $S § 2 g 8
    Benefits paid8		Percent of taxable wages48	OOCMCOO^OCiCOCMO r-4r-ir-4CMcMCMCMCM*CM*CM						Tt4COiOiQr-a>b-OOt^OOCQC5CC’eQC^xJ4O r-4 CM r-4 r-4* CO r-4 CM r-4 r-4 * ’ CM CM r-4 r-4 ‘ H rH H H H CM H ri ri H H
    		Amount (000)	glSs'gWsS rJ r-t r-tCMCMCM CO CfofCM						^*2282^28?^
    Interest on State accounts in trust fund (000)			ssSssaSSBR gSaWmSa’						CM* CM* gr-tio	CO ■tfCo'r-i'cO* CO* 00*0 CP* ho" r-4*
    i		Percent of taxable wages4 8	r-H r-i r-i W W W r-4 CM CM CM						CM CO rH r-4 CO r-4 CM C< * r-4 r-4 CM CM CM r-4 ’ r-4 CM CM CM CO CM CM r-4 CM* r-4 r-4 r-4 CM
    		Amount ’ (000)	^U-rHrtrtCN'oi'cfcoco'
    	States witn tax base	above $3,000 and effective date			i					H §§		3,800(1/62)	j	I 1		8 II-					gg I!			I 1
    	monthly covered employment 2
    Subject employers as of June 30			rtrtCMCSCSofMCScfof						5§S2§§§§§SS§S§S8§§§KS2S§“g8g§
    Year and State			1954-55	1	1955-56		1VDO-OZ	 1957-58				iyoz-od	 1963-64				J ?	■2	V>U1U1 auu	 Connecticut	1	Delaware	 District of Columbia	 Florida.				u-eorgia...		 Hawaii...			it	H	sansas	 Kentucky					H	Bi
    74
    75
    Appendix table 5.—Selected data on unemployment compensation for Federal employees,1 U.S. totals for January-June 1955 and fiscal years 1956-64, by State for fiscal year 1964

    Average weekly benefit amount, UCFE only ?	SSSSJSSSSSS
    	ssssssssss	gs3§3agssss^^8§BS§g§Bs»S8 Slg¥Sgf®s¥8g o r—<	2.7 8.3 10.9 7.9 6.7 8.1 10.7 2.9 13.3 5.6 12.1 13.3 6.8 16.5 5.9 1.1 15.0 4.1 2.8 5.6 5.8 &6 8.3
    	Number	sswsswia ggBWsWSS	oorfrfrfooggcj
    Misconduct	Per 1,000 new spells of insured unemployment 2	toiOHOcoioNaoocQNo
    	Number 			cf cinoW	rtrowwcqct totCtC^-
    Voluntary quit	Per 1,000 new spells of insured unemployment 2	t^Qi-<01CC>O*Q*0t-~CDC0»0
    	Number		00 rCtogodarrtN^cfctw^oo-ocJoto'-ct^c^g^' T—<

    See footnotes at end of table.
    79
    80
    OFFICE OF MANPOWER, AUTOMATION, AND TRAINING
    OFFICE OF MANPOWER, AUTOMATION, AND TRAINING
    RESPONSIBILITIES
    The Office of Manpower, Automation, and Training is responsible for the planning, research, and evaluation of Labor Department activities under the comprehensive manpower program. This program is designed to meet the manpower problems of a changing and expanding economy and of possible national emergencies.
    In carrying out these responsibilities, including those assigned under the Manpower Development and Training Act of 1962 and the Area Redevelopment Act of 1961, the Office performs the following functions:
    1.	Develops and recommends plans for a comprehensive manpower program to guide departmental activity and to provide leadership to other governmental agencies, employers, labor unions, and other organizations dealing with manpower problems.
    2.	Provides leadership, coordination, and direction to the manpower and automation program of the Department; and, utilizing its own staff and through contracting with other agencies of Federal, State, and local governments and outside nongovernmental organizations, conducts a research program aimed at obtaining knowledge and insight needed for effective action on manpower problems.
    3.	Obtains understanding and support of the manpower program by providing technical manpower information to the public and special groups; by fostering the activities of the Committee on Specialized Personnel, the National Manpower Advisory Committee, and local advisory committees; and by providing a clearinghouse of automation and manpower materials and information.
    4.	Evaluates the manpower program, determining on a regular and systematic basis the extent to which the program is bridging the gap between performance and objective; recommends action.
    5.	Provides technical assistance to foreign countries in the area of manpower planning and development.
    6.	Develops guidelines for the apportionment of Manpower Development and Training Act funds among the States.
    OMAT’s major operating segments are the Office of Manpower and Automation Research, responsible for the planning, development, and conduct of a comprehensive manpower research program; and the Office of Manpower Development, responsible for program planning and policy development in
    83
    the field of occupational training and for interpretive, appraisal, and evaluative functions.
    RESEARCH
    Helping to prepare the second “Manpower Report of the President” was a major activity of the research staff during fiscal year 1964. The report reviewed important current developments and major continuing problems in the manpower field. Several areas of major concern were analyzed and assessed, and courses of desirable action indicated for positive programs and policies. The impact of Government expenditures and employment on manpower requirements was reviewed to help provide broad perspective on the manpower implications of Government programs.
    Major areas of study under OMAT’s staff and contract research programs may be categorized broadly as automation and technological developments and their effects on manpower; the measurement and analysis of the Nation’s “manpower accounts” (present and future manpower resources and requirements); and the achievement of needed balance in those “accounts.” An appropriate matching of manpower requirements of the Nation’s advancing technological society with its manpower resources, the development of needed skills for this purpose, and the minimizing of adverse effects of unemployment or underemployment are major objectives of the Manpower Development and Training Act and of OMAT’s research program.
    The contract research program was enlarged through the development and contracting of 40 new research projects selected and developed during the fiscal year from over 200 research proposals from other governmental agencies, Federal, State, and local; research organizations, academic and nonacademic, public and private, profit and nonprofit; individual scholars; and various private groups with interests in special manpower areas.
    Reports of research findings received during the year from a number of research contractors have been made available to the research community through distribution to selected libraries and to OMAT’s field offices. Program and policy recommendations have also been developed from the findings of such research, and reports directed toward the special needs of those concerned with manpower problems are being prepared for publication. Some of the findings of these projects, of internal staff research, and of research conducted for OMAT by other Government agencies, including the Bureau of the Census in the Department of Commerce and the Bureau of Employment Security and the Bureau of Labor Statistics in the Department of Labor, were utilized in the preparation of the ‘ ‘Manpower Report of the President.”
    Emphasis was placed on the strengthening of the procedures for coordinating all manpower research conducted by or under the sponsorship of the Department of Labor. The Coordinating Committee on Manpower and its two subcommittees, each headed by an OMAT representative and composed of representatives of all bureaus of the Department concerned with research, developed and carried out arrangements to help assure the most
    84
    effective results for the overall research program. The committees exchange information on programs of the various bureaus, avoid possible duplications, and provide leadership and direction to future research programs and projects.
    TRAINING
    The signal development of this fiscal year was the action taken by the Congress in December 1963 to amend the Manpower Development and Training Act. Operating experience early in the first year of the act’s implementation demonstrated its limitations in meeting the objectives for which it had been intended. These limitations operated primarily to exclude the educationally deprived and other disadvantaged groups. Provisions of the act as originally passed proved inadequate to cope with the pressing problem of youth unemployment, and otherwise imposed restrictions inhibiting the extension of training opportunities and potentialities for other segments of the unemployed labor force.
    The new amendments provide for basic literacy training, with an additional 20 weeks of training allowances for trainees receiving both literacy and occupational training. The age limit for training allowances for youth was lowered and a higher proportion of program funds for youth allowance purposes allocated to meet their urgent needs. To enhance the success of the original program, greater flexibility in meeting the needs of the unemployed adult labor force with family responsibilities was provided both by liberalizing the eligibility requirements for training allowances and by providing for increased allowance payments to encourage and extend training opportunities. Further flexibility in program operations was provided by authorizing the use of private training facilities in addition to public vocational education facilities. In addition, pilot experimental programs for labor mobility demonstration projects were authorized to test this important method of dealing with manpower problems.
    The amendments also postponed the effective date of State matching of Federal funds, accompanied by the necessary increase in Federal funding provisions, to provide the apparatus necessary for uninterrupted nationwide program operations. Also, the effective period for the training program operations was extended for 2 years.
    With the passage of these amendments, a substantially enlarged training program is anticipated. Labor mobility demonstration projects have already been planned, and some 25 policy guidelines and regulatory provisions have been developed to implement the other amendments. However, since no supplemental appropriation was immediately available to provide for actual implementation of these amendments, the new and broader responsibilities which they encompass have been for the most part deferred until fiscal year 1965.
    In conjunction with its other functions, OMAT is also responsible for evaluation of training operations. This activity was vigorously pursued during fiscal year 1964. Field surveys and evaluations were made of the
    85
    various aspects and impacts of the different types of training programs conducted under both the MDTA and ARA, with particular emphasis upon problem situations. Reports based upon these evaluations have provided insight into the direction and progress of the several manpower programs, together with recommendations for improvements and new directions.
    MDTA Training
    The training program authorized under the Manpower Development and Training Act accelerated to full-scale levels during this fiscal year. Although a substantial start had been made in the initial 10 months of operating experience during the preceding fiscal year, it had been essentially a period for development of the complex machinery required for effective implementation of the new act’s provisions.
    During fiscal year 1964, a total of 2,700 projects for nearly 145,000 trainees and individuals to be served were approved in the 50 States, the District of Columbia, Puerto Rico, and the Virgin Islands (see table 1). As compared with some 72,000 persons for whom training opportunities had been provided in fiscal year 1963, the training program was almost doubled during this fiscal year, reaching a cumulative total of 4,313 projects for 217,485 trainees. A total of $180,615,965 was committed for the implementation of the training projects approved during fiscal year 1964.
    The institutional vocational education program continues to be the most extensive, accounting for 1,917 or more than two-thirds of the total number of training projects approved during the year, and for 114,503—or 85 percent—of the trainees. These are the “in school” type of vocational training courses conducted mainly in public but also in private vocational school facilities pursuant to arrangements made by State vocational education agencies through agreements with the Secretary of Health, Education, and Welfare and with rhe participation of the Federal-State employment security system.
    This program has provided 1 raining for more than 500 individual occupations, covering the broad spectrum of all occupational classifications. The greatest concentration—more than one-third—is in the skilled category, but the proportion of projects and trainees is significant in all other categories: professional and managerial, clerical and sales, service, and semiskilled occupations (see table 2).
    The second largest concentration, one-quarter of all trainees, is in the clerical and sales category, reflecting the extensive participation of women in the training opportunities being extended, as do also the growing service occupational training programs, particularly in the rapidly expanding health field. Overall, women constituted 41 percent of the total number of trainees enrolled in fiscal year 1964.
    As basically intended by the provisions of the act, the bulk of the trainees have been unemployed adult workers. Approximately 54 percent of all trainees selected during this fiscal year were heads of households, more
    86
    than two-thirds were over 21 years of age—the great majority in the 22 to 44 years age bracket—and about 90 percent came from the ranks of the unemployed, of whom slightly more than two-thirds were long-term unemployed. But at the same time the proportion of youthful trainees increased during this fiscal year as program emphasis wras directed to the growing severity of the youth unemployment problem. The proportion of teenagers enrolled in training increased from 13-3 percent during the preceding fiscal year to 18.5 percent during this fiscal year.
    Extensive training opportunities were also extended to a large number of disadvantaged and largely unemployed nonwhite citizens, who comprised slightly more than 28 percent of the total number of trainees. This proportion exceeds their approximately 21 percent proportion of the unemployed labor force. (See table 3 for characteristics of trainees enrolled in institutional training programs.)
    The on-the-job training program, for which the Bureau of Apprenticeship and Training has operating responsibility, accelerated substantially after the initial difficulties of program implementation during the preceding fiscal year. From only 115 projects for 1,597 trainees approved during fiscal year 1963, this program had advanced to the point that 740 projects for 10,292 trainees were approved during fiscal year 1964. Another 105 projects for 2,249 trainees were approvable and pending subject to availability of funds.
    Skill training in a variety of occupations is being provided for on-the-job trainees. The preponderance is in the semiskilled and skilled crafts—in shipbuilding, construction, tool and die works, and diverse machine operations and manufacturing industries. The balance is distributed in the other occupational classifications—semiprofessional and technical, clerical and sales, the newly emerging and expanding health and other service occupations, and in a diversity of miscellaneous entry-level occupations. (See table 2.)
    Two new patterns of on-the-job training programs evolved during the year. These included a number of so-called “national” programs which involve master training plans designed to meet a broad overall industry need of regional or national scope, implemented by various individual local training facilities. On-the-job training programs were also developed to provide the occupational training component of special experimental and demonstration projects, principally those for youth. These provide specific on-the-job training coordinated with the special supportive services needed to prepare these disadvantaged persons for full labor force participation.
    The third type of training program under MDTA is the ex-perimental and demonstration project. These projects more than tripled, increasing from 21 at the end of fiscal year 1963 to 64 by the end of this fiscal year. Training and services under the 43 projects approved during the fiscal year were provided for 20,107 persons, bringing the cumulative total of persons served under these programs to 34,177. These projects are designed
    87
    especially for the particularly disadvantaged and “hard-core” unemployed with complex training problems which cannot be met through conventional MDTA or other training. The projects offer a variety of training and remedial services tailored, to meet the needs of these trainees—basic education and specialized counseling, guidance, testing, orientation, and rehabilitative health and diagnostic services where necessary, in addition to occupational training. A total of $6,150,741 was committed for these specialized programs during the fiscal year.
    These projects, which are developed and approved by OMAT but which frequently utilize institutional skill training arranged by the Department of Health, Education, and Welfare and the Labor Department’s Federal-State employment security system, as well as community volunteers, have been a successful pioneering effort in training those who cannot qualify for typical training programs. Although the early emphasis was on special projects for youth, specialized training was developed during the year for older workers and the rural poor, two groups which have not been readily reached in training and retraining programs.
    In line with its experience in dealing with the problems of special disadvantaged groups, OMAT was also assigned responsibility during this year for planning, coordinating, and providing leadership of a program involving some half dozen departmental agencies to facilitate the employment of older workers. This included taking part in the preparation of a report and a series of recommendations to the President from the President’s Council on Aging. As an outgrowth of this activity, the Department contracted with the National Council on Aging for the development of seven experimental and demonstration projects to test methods and techniques directed toward the reemployment of workers of 50 years of age and older.
    ARA Training
    Fiscal year 1964 marked a year of further progress as well as innovation in the administration of the occupational training program administered pursuant to section 16 of the Area Redevelopment Act.
    With the experience gained in approving training for approximately 34,000 trainees through June 1964, the program emphasis has been directed toward more effective means of meeting what is probably the Nation’s most pressing manpower problem—that of rehabilitating the hard-core unemployed in depressed areas providing the least employment opportunities.
    A familiar example is Appalachia—a region extending over 10 States—• which has long faced the combination of declining demand and technological change in its major industry, coal mining. Here, ARA training projects are contributing to the upgrading of skills and the development of new skills in the preparation of unemployed workers for available job openings, despite the problems of rural isolation, inadequate training facilities, serious educational deficiencies, and limited job opportunities. The Appalachian program has stimulated other regions such as northern
    88
    Michigan, Minnesota, and Wisconsin to take similar action in developing their fullest economic potentials. In the coming year, program emphasis will continue to be directed towards broader regional economic developmental effort in meeting problems of chronic unemployment.
    The need for a new approach in meeting the hard-core urban unemployed problem has also been met through the designation of several major central city areas as redevelopment areas, thus expanding the opportunities for ARA training. Plans are proceeding for more extensive training in these stricken areas, where minority groups in particular bear the brunt of longterm unemployment.
    Another of the new approaches employed in ARA training is the use of “coupled” projects, where institutional or classroom instruction is combined with on-the-job training in a work environment to provide a broader spectrum of skill development in a specific area, making for a more flexible, employable labor pool. Cooperative efforts between the Department of Labor and other governmental agencies have led to the coordination of ARA training with funds and resources available through other agency programs, thereby providing for meeting broader needs. In other cases, ARA training has been used in conjunction with experimental and demonstration projects under MDTA to provide prevocational training, especially for unemployed youth.
    The record established in 1964 by the ARA of over 78 percent placement in jobs for all those completing ARA training is even more notable in view of the paucity of job opportunities in the economically distressed areas of this Nation. Table 4 summarizes project approval data for fiscal year 1964 and the cumulative totals since the beginning of the program in November 1961, while table 5 summarizes the status of trainees for the same two periods.
    In January 1964, the functions of review and approval of ARA training projects were administratively reassigned to the Bureau of Employment Security, while the Office of Manpower, Automation, and Training retained the responsibility for evaluating and planning for economic development, including regional planning.
    INFORMATION AND COMMUNICATION
    In response to the MDTA requirement to “promote, encourage, or directly engage in programs of information and communication concerning manpower requirements, development, and utilization,” OMAT conducts a communications program which includes the preparation and dissemination of publications; participation in conferences, seminars, and similar discussions; development and use of exhibits and displays; and responses to inquiries.
    Major publications during the year were the “Manpower Report of the President and a Report on Manpower Requirements, Resources, Utilization and Training by the United States Department of Labor”; the Secretary’s
    89
    Table 1.—Projects and trainees approved under the Manpower Development and Training Act, by State, July 1, 1963-June 30, 1964
    	Total approved		Institutional1		On-the-job2		Experimental and demonstration •
    	Projects	Trainees	Projects	Trainees	Projects	Trainees	Projects	Individuals
    Total		2,700	144,902	1,917	114,503	740	10,292	43	20,107
    Alabama		13	5,220	12	5,060	0	0	1	160
    Alaska	 		11	L747	10	1, 547	0	0	1	200
    Arizona		33	L095	18	989	14	31	1	75
    Arkansas		33	679	22	604	11	75	0	0
    California.- 		152	10, 990	129	7,581	20	909	3	2,500
    Colorado..			27	1', 149	24	989	3	160	0	0
    Connecticut			48	4'923	39	4 051	8	72	1	800
    Delaware			7	'464	6	452	1	12	0	0
    District of Columbia.	35	3,392	18	1,305	12	127	5	1,960
    Florida			43	2, 655	42	2, 643	1	12	0	0
    Georgia		42	3'429	19	3'146	23	283	0	0
    Guam		0	0	0	0	0	0	0	0
    Hawaii		5	197	5	197	0	0	0	0
    Idaho 		12	158	7	122	5	36	0	0
    Illinois		99	9,966	84	6,414	12	1,352	3	2,200
    Indiana		44	4' 155	42	1355	0	0	2	2,300
    Iowa				32	L 278	28	L131	3	47	1	' 100
    Kansas				32	'990	23	'889	9	101	0	0
    Kentucky			66	4,869	65	4,864	1	5	0	0
    Louisiana			4	22	0	0	4	22	0	0
    Maine	 		30	2,276	27	2,249	3	27	0	0
    Maryland. 				38	ij 712	17	' 745	17	77	4	890
    Massachusetts... . _	100	5j 699	91	3,905	8	154	1	1,640
    Michigan		155	4'860	94	3'755	58	455	3	650
    Minnesota	 .	44	'862	21	690	23	172	0	0
    Mississippi-	 		13	2,611	1	2,095	12	516	0	0
    Missouri		68	3'436	61	2357	5	29	2	750
    Montana			23	'508	18	'470	5	38	0	0
    Nebraska		19	1,018	18	952	1	66	0	0
    Nevada		23	L 324	23	1, 324	0	0	0	0
    New Hampshire		17	'749	15	'719	2	30	0	0
    New Jersey	 .	150	2,874	75	2,179	75	695	0	0
    New Mexico		23	' 587	19	'540	4	47	0	0
    New York			182	11, 346	118	7,889	57	677	7	2,780
    North Carolina... ..	74	L 318	36	L 039	38	279	0	0
    North Dakota. _	43	' 410	29	'384	14	26	0	0
    Ohio..			115	5,389	96	4,676	18	113	1	600
    Oklahoma		 ...	20	4,289	20	4389	0	0	0	0
    Oregon.. 			36	1,823	30	1' 267	5	56	1	500
    Pennsylvania		103	5,368	69	4; 516	33	682	1	170
    Puerto Rico. . 		253	4,731	123	2'992	130	1,739	0	0
    Rhode Island		17	'430	16	'418	1	12	0	0
    South Carolina		5	5,100	4	5,060	1	40	0	0
    South Dakota. _ .	33	'332	9	' 141	24	191	0	0
    Tennessee				47	3,061	47	3,061	0	0	0	0
    Texas				131	Z, 834	86	3332	45	602	0	0
    Utah		18	'440	18	'440	0	0	0	0
    Vermont		23	652	22	632	1	20	0	0
    Virginia. 			43	2,184	25	1,928	17	56	1	200
    Virgin Islands.		15	'306	15	'306	0	0	0	0
    Washington			32	2,130	29	2,087	3	43	0	0
    West Virginia		 _	16	4'270	14	2350	0	0	2	1,420
    Wisconsin.. ..	47	1315	33	'999	12	204	2	212
    Wyoming		6	'180	5	178	1	2	0	0
    1 Does not include projects which have been withdrawn.
    2 Headquarters location of contractor.
    * Represents the number of individuals receiving services and/or training; some projects involve only promotion and evaluation services and do not involve individuals.
    report on “Manpower Research and Training under the MDTA”; “Occupational Training: Pathway to Employment,” an annual report of ARA training activities; “Bridge to Employment,” a description of the experimental and demonstration projects; and a number of issuances in such established or new series as research bulletins, manpower reports, manpower evaluation reports, and demonstration notes.
    During the year, OMAT also began a program of national seminars on manpower policy and programs, providing a platform for discussion of the
    90
    Table 2.—Institutional and on-the-job training projects and trainees approved under the Manpower Development and Training Act, by major occupational group, fiscal year 1964
    Major occupational group	Total		Institutional		On-the-job training 1
    	Projects	Trainees	Projects	Trainees	Projects	Trainees
    Total2				2,564	78, 568	1,824	68, 276	740	10, 292
    Professional and managerial 3-_ 		284	8, 508	255	7,869	29	639
    Clerical and sales		440	16' 387	410	16; 218	30	169
    Service		232	10,335	197	9; 563	35	772
    Skilled		824	22, 662	624	19,057	200	3,605
    Semiskilled		578	16, 512	230	12, 228	348	4; 284
    Other		206	4,164	108	3; 341	98	'823
    Percent
    Total <_____________________________
    Professional and managerial_______________
    Clerical and sales________________________
    Service___________________________________
    Skilled___________________________________
    Semiskilled_______________________________
    Other_____________________________________
    100.0	100.0	100.0	100.0	100.0	100.0
    11.1	10.8	14.0	11.5	3.9	6.3
    17.2	20.9	22.5	23.8	4.1	1.6
    9.1	13.2	10.8	14.0	4.7	7.5
    32.1	28.8	34.2	27.9	27.0	35.0
    22.5	21.0	12.6	17.9	47.0	41.6
    8.0	5.3	5.9	4.9	13.3	8.0
    1 Data apply only to projects sponsored by the Bureau of Apprenticeship and Training.
    2 Totals shown cover only those projects for which explicit occupational data were available.
    8 Training occupations in this group are chiefly at semiprofessional or technical level; refresher training is given for a few professional occupations, mainly trained nurses.
    4 Detail may not add to totals due to rounding.
    Table 3.—Selected characteristics of Manpower Development and Training Act trainees enrolled in institutional projects, fiscal year 1964
    		Sex			Color
    Characteristics	Total	Male	Female	White	Nonwhite	Not obtained
    All trainees1		54,295	31,873	22,422	36,752	14,524	3,019
    Family status: Head of households	 Other	 Not reported	 Age: Under 19 years	 19 to 21 years	 22 to 34 years	 35 to 44 years	 45 years and over	 Education: Less than 8th grade	 8th grade	 9th to 11th grade	 12th grade	 Over 12th grade	 Not reported	 Gainful employment: Under 3 years	 3 to 9 years	 10 years or more	 Not reported	 Employment status: Unemployed Under 5 weeks	 5 to 14 weeks	 15 to 26 weeks	 27 to 52 weeks	 Over 52 weeks	 Other2			29,239 24,910 146 5,165 12,865 20,249 10,013 6,003 2,472 4,283 17,686 25,482 4,298 74 16,563 22,911 14,700 121 13,589 12,006 7,031 5,768 10,180 5,721	21,347 10,454 72 2,776 8,042 12,944 5,123 2,988 1,953 3,208 11,288 13,260 2,114 50 7,407 13,643 10,780 43 8,924 8,274 4,304 3,163 3,384 3,824	7,892 14,456 74 2,389 4, 823 7,305 4,890 3,015 519 1,075 6,398 12,222 2,184 24 9,156 9,268 3,920 78 4,665 3,732 2,727 2,605 6,796 1,897	19,636 17,027 89 3,741 8,190 12,550 7,257 5,014 1,525 3,248 11,070 17,922 2,940 47 10,555 15,402 10,735 60 9,840 8,278 4,725 3,639 6,294 3,976	7,959 6,516 49 1,068 3,955 6,504 2,294 703 720 806 5,486 6,347 1,145 20 5,017 6,190 3,264 53 3,048 3,036 1,931 1,819 3,266 1,424	1,644 1,367 8 356 720 1,195 462 286 227 229 1,130 1,213 213 7 991 1,319 701 8 701 692 375 310 620 321
    i Detail for each subgroup adds to total for all trainees.
    1 Includes persons (a) who were family farmworkers or underemployed, or (b) whose employment status was not reported.
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    Table 4.—Summary*'of selected statistical data in approved Area Redevelopment Act training programs, fiscal year 1964 and cumulative total to June 1964 1
    Item	Cumulative total to June 1964	Fiscal year 1964
    Projects	 ___	750	305
    Trainees		33,916	11 923
    Courses		971	324
    Occupations		175	84
    States		2 47	8 39

    1 For the period November 1961-June 1964.
    2 Includes American Samoa and Puerto Rico.
    8 Includes Puerto Rico.
    Table 5.—Summary of selected statistical data on the status of Area Redevelopment Act trainees, fiscal year 1964 and cumulative total to June 1964
    Item	Cumulative total to June 1964	July 1963 through June 1964
    Enrolled				27, 225 4,096 2,397 20, 732 15, 544	10, 500 1,264 2,397 8,287 6,491
    Dropped
    Currently enrolled 1
    Completed
    Employed—total
    Training related
    	14,040 1,504	6, 084 407
    Nontraining related
    Walting referral
    	5,188	1,796

    1 As of July 1, 1964.
    issues raised in the “Manpower Report of the President’’ and in the development o£ an active labor market policy. The first two of these seminars were held in April and June.
    In the area of technical assistance for manpower planning and development in foreign countries, field studies were made and materials prepared for presentation to the Organization for Economic Cooperation and Development at its meeting in Paris, France, on experiences in the private sector of the American economy with retraining of workers affected by technological change. OMAT also had the responsibility, with the cooperation of the Bureau of International Labor Affairs of the Department of Labor, for the conduct of the Fourth Annual International Seminar on Manpower in Social and Economic Development, which brought together some 35 top-level participants, many from countries with emerging industrialization and who were interested in receiving training in manpower planning and related fields.
    92
    LABOR-MANAGEMENT SERVICES ADMINISTRATION
    749-199—65---7
    LABOR-MANAGEMENT SERVICES ADMINISTRATION
    The Labor-Management Services Administration was established in the Department on August 21, 1963, to administer the Department’s programs in the labor-management relations area.
    The largest Office within the Administration carries out the Department’s reporting and disclosure, investigative, and technical assistance activities relating to the Labor-Management Reporting and Disclosure Act and the Welfare and Pension Plans Disclosure Act. Merging the activities in connection with these statutes, formerly performed by two separate units within the Department, is resulting in an increasingly effective administration of the acts, better utilization of employee skills, and reduced administrative and operating costs.
    The Office of Labor-Management Policy Development provides a research and policy development staff for the appraisal and analysis of short- and long-range proposals, programs, and administrative policies bearing upon the labor-management and welfare-pension reporting and disclosure laws and labor-management relations matters generally. The Office of Veterans’ Reemployment Rights, which came into the Administration near the end of the fiscal year, continues its work under veterans’ reemployment rights legislation of bringing together the returning veteran and his pre-service employer in the interest of reestablishing the ex-serviceman in his former position or one which is equal. The Department’s responsibilities under Executive Order 10988, which provides for Federal employee-management cooperation in the Federal service, are performed by the Office of Federal Employee-Management Relations. The administrative, fiscal, and management functions which formerly serviced the separate disclosure units have been consolidated in a single Office of Administration and Management to handle similar functions for all LMSA operating units.
    In addition to the specific responsibilities of the various organizational units within the Labor-Management Services Administration, a variety of services in the labor-management relations area are performed by the immediate office of the Administrator. During 1964, the Administrator provided guidance in the development of a series of special manpower utilization-job security studies for major east and gulf coast ports to facilitate the resolution of critical manpower issues affecting the longshore industry. Services were also provided in the dispute between the Nation’s railroads and unions representing the operating railroad workers; this dispute was resolved on April 22, 1964, under the leadership of President Johnson. In addition, the Administrator represents the Department or
    95
    provides assistance on labor-management problems to such groups as the President’s Advisory Committee on Labor-Management Policy, the Interagency Committee on Transport Mergers, the Maritime Advisory Committee, and the Interagency Committee on International Air Transport Policy.
    OFFICE OF LABOR-MANAGEMENT AND WELFARE-PENSION REPORTS
    The Office of Labor-Management and Welfare-Pension Reports (LMWP) was organized on August 21, 1963, by the merger of the former Bureau of Labor-Management Reports and the Office of Welfare and Pension Plans. LMWP administers two statutes, the Labor-Management Reporting and Disclosure Act and the Welfare and Pension Plans Disclosure Act. Experience in the administration of these two statutes over several years demonstrated the desirability of combining their operations. The result of the merger has been to effect better management and control over reporting, disclosure, and investigative activities with substantial savings in personnel and operating costs. In addition, the merger made available a trained field organization for administration of both statutes.
    Compliance and technical assistance activities are conducted by 5 regional offices through a field staff assigned to 24 area offices throughout the country, including Hawaii and Puerto Rico. Field activities are further decentralized through 11 resident offices, where 1 or 2 compliance officers are assigned in order to make the agency’s services more accessible. New resident offices were opened during the year in Charlotte, N.C., and Memphis, Tenn.
    Labor-Management Reporting and Disclosure Act
    Reports continued to come in from labor organizations at about the same rate as in previous years. There are some 52,000 unions subject to the act. Reports of newly started unions and of those merged and terminated are about the same as in the past. A program to obtain delinquent reports through the cooperation of parent organizations had by the end of the year brought in reports from 4,000 locals and other unions which had missed one or more filings fcr fiscal years 1959-62.
    The Office processed 65,375 labor-management reports during the year, including labor organization financial reports (LM-2 and LM-3), initial and terminal reports, trusteeship reports, and employer and consultant and union officer filings. A new reporting form, “Labor Organization Officer and Employee Report” (form LM-30), was issued during the year; its use was mandatory after October 21, 1963. Previously, union officers and employees filing reports under section 202 submitted them in letter form.
    Public disclosure files of union reports are maintained in each of the 24 LMWP area offices as well as the national office. A total of 18,735 files
    96
    were examined by visitors to the disclosure rooms. Copies of 4,475 reports were reproduced on request. A substantial portion of the persons examining the reports were workers; others included attorneys, law enforcement people, and trade association and press representatives.
    In a continuing effort to promote understanding of the act’s requirements, LMWP conducted 284 workshops and meetings on union reporting, election provisions, and the employer and consultant reporting requirements. The first employer-consultant clinics were begun through the sponsorship of local chambers of commerce. Total attendance at technical assistance clinics was 8,804.
    LMWP staff participated in 221 union conventions and conferences, providing speakers, pamphlets, and other educational material relating to the act. Publications and technical assistance aids were also distributed locally to assist union officials in maintaining financial and election data and to increase the knowledge of reporting requirements by labor and management officials. The Office designed a file folder for the use of unions to facilitate maintenance of data relating to the act’s requirements, and 25,000 were distributed mainly through international unions whose officers recommended the folder’s use as an aid in keeping essential information.
    A revised “Register of Reporting Labor Organizations,’’ on the press by the end of the year, lists a total of 51,856 unions which file reports under the act.
    Civil suits filed under the reporting provisions charge one union officer with failure to file a report on commissions received from vending machines placed in plants under contract to the officer’s union. The Department brought its first suit to compel a union (which had previously filed a labor organization information report) to submit annual financial reports.
    Other reporting actions involved labor consultants or employers. One of the consultant actions was against a national committee which normally represents employers, charging it with failure to report an agreement under which one of the committee officials allegedly addressed a firm’s employees at a time when a union representation drive was in progress.
    Improved statistical and review techniques indicate an increasing number of election cases in which violations occur. In the second and third years of administration of the law, election violations were found in over 75 percent of the cases; and in the fourth year over 80 percent disclosed some violations of the election provisions. It should be noted, however, that many such violations are minor in character and would not affect the outcome of the election during the year. Over half of these were dismissed for reasons such as lack of timeliness, lack of jurisdiction, failure to invoke or exhaust internal union remedies, or for want of probable cause to believe that the violations found might have affected the election outcome. Unions agreed voluntarily to rerun 26 elections under LMWP supervision, another 9 achieved compliance by other means, and 9 elections were supervised by LMWP under Federal court order.
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    Court action was initiated in 25 election cases to set aside the challenged election and obtain an election rerun under the supervision of the Secretary of Labor. Alleged violations varied widely, including failure to hold an election within the period prescribed by the act; failure to conduct a secret ballot election; the reasonableness of a racial qualification for holding union office; and the reasonableness of requiring officer candidates to attend at least 75 percent of local union meetings for 2 years prior to nomination.
    In considering the actions brought under the election provisions, Federal judges have made the following significant rulings during the year:
    •	The Secretary did not forfeit his right of action in a union election case by filing suit 2 days after the time period set in the act. Wirtz v. Local 611, International Hod Carriers’ and Common Laborers' Union, 229 F. Supp. 230 (D.C., Conn., 1964).
    •	Where the violations complained of may not have affected the outcome of the election, the Secretary of Labor is not required to bring suit. Altman v. Wirtz, 56 LRRM 2651 (U.S.D.C., D.C., 1964).
    •	The Secretary may investigate possible election violations without regard to whether the complainant has exhausted his internal union remedies or even whether any complaint has been filed. Wirtz v. Local 191, International Brotherhood of Teamsters, 321 F. 2d 445 (J- Cir., 1963).
    In an effort to hold down violations through its technical assistance programs, LMWP compliance officers conducted 174 clinics or workshops to advise union officers and members of the election provisions. The clinics usually were cosponsored by central labor organizations or individual unions. Although the clinics are no longer a novelty in the administration of the act, the meetings continue to attract new participants because of the turnover of union officers and new entries into the ranks of organized labor.
    Embezzlement indictments lead a list of criminal actions which include false reporting, making false entries in union records, destruction of records, etc. During fiscal 1964, 61 persons were convicted on embezzlement and 5 on reporting charges, 7 were acquitted, and indictments against 2 were dismissed. Some of the actions were initiated in previous years. Most but not all persons involved in these charges were union officers or employees. A part-time accountant was convicted of embezzlement, and a certified public accountant in another case was indicted with two union members on a charge of conspiracy to violate the act.
    In addition to imposing sentences in embezzlement cases, courts have in many instances ordered restitution. During the year, $51,000 was restored to labor union treasuries on this basis, and other restitution ordered or begun will run into many times this amount. In one case the court ordered restitution and prohibited the convicted person from gambling during a 5-year probationary period.
    Other criminal violations involved an employer who willfully failed to file an employer report required by section 203(a), and two union officers
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    indicted for failure to obtain bond under the act. One union officer was acquitted on a charge of failing to file a union officer report.
    Three actions under the officer convict provisions contained in section 504 resulted in two convictions. One of the actions resulting in a conviction was the first in which a union officer was found to have knowingly hired an assistant with a criminal record. In another case, involving a union officer who was an admitted member of the Communist party, the U.S. District Court was reversed by a 5-to-3 decision of the Ninth Circuit Court of Appeals, which said about section 504: “ . . . its imposition of criminal sanctions upon Communist party members, must be held to conflict with the First and Fifth Amendments of the U.S. Constitution and upon this ground to be void.”
    Among private actions involving the criminal provisions, one concerned an unsuccessful attempt by a paroled union officer to obtain a certificate of exemption from the U.S. Board of Parole.
    Another criminal action, brought against four unionists under section 610 prohibiting physical or verbal coercion to deprive union members of certain rights, and under 18 USC 1505, for conspiring to obstruct justice, resulted in the acquittal of all four on the 610 charge and the conviction of two on the 18 USC 1505 charge.
    A civil action resulted in the lifting of a trusteeship which had been imposed over the branch of a national union. Subsequently, an election of branch officers was conducted under the supervision of the Labor Department.
    There were 62 investigations of alleged violations of the trusteeship provisions during the year. International unions lifted several additional trusteeships upon LMWP’s advice that continuance of the trusteeship might be grounds for litigation.
    The first criminal action under the trusteeship provisions was brought against a former union business agent and financial secretary-treasurer indicted on two counts of falsifying the trusteeship records, one count of filing a false report and withholding records, and four counts of embezzlement. The trial is still pending.
    Welfare and Pension Plans Disclosure Act
    In administering the Welfare and Pension Plans Disclosure Act, which requires the disclosure of plan provisions and financial operations, LMWP now has on file reports from some 185,000 private employee-benefit plans. Total assets of private welfare and pension plans are estimated at over $70 billion.
    The Department has attempted to help plan administrators and others understand the requirements of the law through a direct-contact educa
    99
    tional campaign consisting of a series of meetings held in major cities throughout the United States, the dissemination of printed materials, and replies to individual inquiries.
    During fiscal year 1964, the Department of Labor received 6,250 inquiries concerning the requirements of the act. Principal topics of interest were the coverage of the act, identification of plan administrators, information required in the financial report, and bonding provisions.
    A program of clinics on employee-benefit plans, started in early 1963, was continued. During the year, more than 12,000 persons attended clinics in 71 cities. Attending were representatives from the insurance industry, employer groups, labor unions, and financial institutions, including attorneys, accountants, actuaries, and others engaged in the employee-benefit field. The clinics described the act’s coverage and the reporting and bonding requirements. Originally conducted by a national office team, the field staff has been given increasing responsibility for the clinics.
    During the fiscal year, the Advisory Council on Welfare-Pension Benefit Plans held two meetings. The 13-member council, organized in accordance with section 14 of the act, is appointed by the Secretary of Labor. Committee members include representation from the insurance and corporate trust fields, labor, management, and other interested groups whose range of interests is related to welfare-pension activities. Three council members represent the general public.
    The Office continued to process and make available for public examination the plan descriptions, amendments, and annual reports filed in accordance with the law. Received this year were about 9,200 new plan descriptions, 23,500 amendments to plan descriptions, and 116,900 annual reports.
    Visitors to the Department’s Public Document Room numbered 1,320. They examined a total of 24,050 welfare and pension plans, an increase of 1,400 over 1963. Over 34,000 pages of reports were reproduced for sale. Statistics on report processing, inquiries, and disclosure activities are in table 1.
    A set of tabulations was released entitled “Welfare and Pension Plan Statistics—Characteristics of 161,750 Plans Filed as of July 1, 1963.” The data (some reproduced in table 2) include the distribution of plans by type of plan, State location of principal office, type of administrator, benefits provided, parties contributing, and industries.
    Compliance with the act is obtained voluntarily in the vast majority of cases. Since the granting of enforcement powers to the Secretary of Labor in August 1962, cases were opened on 1,574 violations. More than two-thirds involved failure to file reports. Most of the cases originated from the reports processing and audit programs.
    Compliance has been sought chiefly through correspondence and individual contacts. Administrators generally are willing to take corrective action when delinquencies or deficiences are pointed out. Of 1,049 violations consisting of failure to file reports, 672 have been closed. Of these, compliance was obtained in 446 instances; the remaining 226 were closed
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    by reason of lack of coverage, absence of violation, or termination of the plan.
    In 58 instances where examination of annual reports provided a reasonable basis to believe that an investigation might disclose a violation, plan administrators were asked to submit a certification of their annual reports by an independent certified or licensed public accountant. About one-third of the certifications have cleared up questions and made investigations unnecessary.
    The Secretary has filed civil suits in U.S. courts against three plan administrators to compel the filing of reports. One of the suits resulted in a consent judgment in which the defendant was ordered by the court to file within 30 days a plan description and all overdue annual reports on its pension plan, which covers 400 employees.
    In June 1963, the Secretary took court action against a shoe manufacturer in Maine for refusing to file annual financial reports on a group life insurance plan covering its employees. A plan description had been filed. After stipulation by the defendant that reports would be filed, the complaint was dismissed.
    In September, an oil firm was named as defendant in a civil action filed in the U.S. District Court for the Eastern District of Pennsylvania. The suit maintains the corporation is the plan administrator and therefore must file annual financial reports and an amended plan description naming itself as administrator instead of the Blue Cross organization which provides the benefits. At the end of the year, the case was still pending.
    There has been no resort to court action by the Secretary to force compliance with the requirement that plan provisions be disclosed to participants who request the information. Although 35 participants alleged that administrators denied them their disclosure rights, investigations revealed that in 19 instances there was no violation of the act. In 2 cases administrators agreed to make disclosure, and the remaining 14 allegations are under investigation.
    Several hundred complaints have been received from participants and beneficiaries asking for help in collecting welfare or pension benefits. Since the Secretary is not authorized by law to regulate or interfere in the management of employee-benefit plans, the Department informs the petitioner that it cannot help him. In most instances these requests provide no basis for undertaking an investigation of the plan.
    Thirty-seven alleged violations of title 18 amendments (embezzlement, false reporting, and kickbacks) were referred to the Department of Justice. In 20 instances, that Department determined that insufficient grounds existed to support prosecution. The remaining 17 matters were pending at the end of the year.
    Four persons have been indicted in Federal courts for the embezzlement or misappropriation of plan funds, in violation of title 18, section 664. One of these cases, under agreement with the Department of Justice, was investigated by the Department of Labor. This case was pending.
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    Three other indictments, two ending in convictions, were based on investigations by the Department of Justice. Max Davis, former president of Local 10, Independent Brotherhood of Production, Maintenance and Operating Employees, New York, was found guilty of embezzling $16,500 from a union welfare fund, fined $25,000, and sentenced to 5 years’ imprisonment.
    Ralph Gordon, former business agent in New York for American Guild of Variety Artists, was sentenced to 1 year’s probation for embezzlement of welfare funds and sentenced to 6 months’ imprisonment on a related charge of embezzlement of union funds.
    In another case, the defendant committed suicide 3 months after being indicted.
    Some of the main activities of the office related to implementing regulations issued the year before, processing bonding petitions, and issuing determinations under the authority given the act by the 1962 amendments.
    The number of petitions for exemption from bonding provisions of the act reached 175 during the year, of which 29 were denied, 67 were withdrawn or canceled, and the following were granted:
    In August, the Secretary granted an exemption by permitting the placing of bonds for administrators, officers, and employees of welfare and pension benefit plans covered by the act with Underwriters at Lloyds, London, who were not acceptable sureties on Federal bonds as approved by the Secretary of the Treasury.
    The Secretary granted an exemption to certain banking institutions with respect to plans administered for their own employees. The two petitioners were the American Bankers Association and the National Association of Mutual Savings Banks, acting on behalf of bank plans. The petition for exemption was granted to banking institutions subject to Federal law and supervision of Federal agencies.
    An exemption granted previously to four surety companies, members of the Surety Association of America, was extended to all surety companies appearing on the Treasury list as approved reinsurers. This enables plan administrators to obtain bonding arrangements for purposes of the act with surety companies which previously were approved only for reinsurance purposes by the Treasury Department.
    Procedures were developed for passing on exemption petitions on the basis of financial responsibility, but during this year no exemptions were granted on this basis.
    A general statement was issued on provisions governing retention of welfare and pension plan records.
    While revisions were not yet in final form by the end of this fiscal year, considerable work was devoted to developing new D-l plan description and D-2 annual report forms to replace those used before the 1962 amendments. In this revision, the Department consulted with its Welfare-Pension Advisory Council, other Federal agencies, State agencies having similar disclosure laws, and various professional groups.
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    Table 1.—Welfare and pension benefit plans, status report, June 30, 1964
    Activity	Jan. 1, 1959, to June 30,1964	Fiscal year 1964
    Preparation of replies to substantive inquiries: Total number answered	 	 - 	 		53,620	6,250

    Mail		28,820 18,770 1,340 4,690	3,290 2,020 200
    Phone	 			 			 _	.
    Visitor
    Other disposition			740
    Public Disclosure Room: Number of visitors	 	 					5,680 92,560	1,320 24,050
    Number of plans examined
    Furnishing copies of filings on reimbursable cost basis: Number of pages			 	 	 _	132,810 13,310	34,060 4,210
    Number of filings utilized
    Receiving filings: Filings received—total		860,840	149,560
    Plan descriptions		183,690	9,230
    Amended plan descriptions. 			 					112,290 483,490	23,460 67,190
    Annual financial reports (Dh-2)
    Information report for small plans (D-3)		81,370	49,680
    Number identified and available for disclosure				855,290	148,870
    Plan descriptions - _ 	 _		 	 		183,540 112,290	9,300 23,460
    Amended plan descriptions
    Annual financial reports (D-2)		478,090	66,430
    Information report for smallplans (D-3)		81,370	49,680
    Number examined and tabulated . 	 						755,190	185,180

    Plan descriptions 					 __ 		183,130 112,290	9,640 23,460
    Amended plan descriptions
    Annual financial reports (D-2)		459,770	152,080
    Correspondence (other than substantive): Total number of letters		195,140	29,720
    Re overdue plan description  	 				-	- -	2,270 20,510	170 240
    Re deficiency in plan description
    Re overdue annual report		78,360	17,920
    Re deficiency in annual report		3,810	1,970
    Other. _		 				90,190	9,420

    Table 2.—Distribution of 161,750 welfare and pension plans, as of July 1963
    Item	Number of plans				Percentage distribution
    	Total-all plans	Welfare plan	Pension plan	Combination plan	Total— all plans	Welfare plan	Pension plan	Combination plan
    			By types of benefits provided
    Total—all plans		161,750	128,340	32,610	800	100.0	100.0	100.0	100.0
    Welfare benefits:
    Hospitalization		82,730	82,300	0	430	51.1	64.1	0	53.8
    Surgical		80, 520	80,120	0	400	49.8	62.4	0	50.0
    Life insurance		76,530	76, 020	0	510	47.3	59.2	0	63.8
    Medical		66,560	66,230	0	330	41.1	51.6	0	41.3
    Accidental death and dis-
    memberment		53,860	53, 630	0	230	33.3	41.8	0	28.8
    Accident and sickness		39,490	39,200	0	290	24.4	30.5	0	36.3
    Paid sick leave		3,900	3,850	0	50	2.4	3.0	0	6.3
    U nemployment		1,160	1,140	0	20	.7	.9	0	2.5
    Dental		320	310	0	10	.2	.2	0	1.3
    Pension benefits:
    Retirement for age or service.	32,750	0	32,050	700	20.2	0	98.2	87.5
    Death benefits		26,720	0	26, 210	510	16.5	0	80.4	63.8
    Retirement for disability		23,310	0	22,890	420	14.4	0	70.2	52.5
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    Table 2.—Distribution of 161,750 welfare and pension plans, as of July 1963—‘Con.
    Item	Number of plans				Percentage distribution
    	Total-all plans	Welfare plan	Pension plan	Combination plan	Total— all plans	Welfare plan	Pension plan	Combination plan
    	By parties making contributions to plans
    Total—all plans		161,750	128,340	32,610	800	100.0	100.0	100.0	100.0

    Employer(s)				70,400 12,730	46,310 12,460	23, 670 240	420	43.5	36.1	72.6	52. 5
    Plan participants						30	7.9	9.7	.7	3.8
    Employer(s) and plan partici-
    pants 			71, 770 1,260	63, 790 1,170 4,610	7,660 70	320	44.4	49.7	23.5	40.0
    Union (out of general funds)					20	.8	.9	.2	2.5
    Other and unclassified		5,590		970	10	3.4	3.6	3.0	1.2

    	By industry divisions
    Total—all industry divi-
    si OHS		161,750	128,340	32,610	800	100.0	100.0	100.0	100.0

    Mining		2,120 6,670 73, 780 5,840	1,690 5.370	420	10	1.3	1.3	1.3	1.3
    Construction	 				1,270 15,820 1,190	30	4.1	4.2	3.9	3.8
    Manufacturing			57, 690 4, 590		270	45.6	45.0	48.5	33.8
    Transportation	_ 					60	3.6	3.6	3.6	7.5
    Communication and other pub-
    lie utilities					4,100 29,580 13,200	3,010 24, 500 9,530	1.020	70	2.5	2.3	3.1	8.8
    Wholesale and retail trade 				4,960 3,540	120	18.3	19.1	15.2	15.0
    Einance, insurance, real estate					130	8.2	7.4	10.9	16.3
    Services			16,670 9,790	14,090 7,870	2,500 1,890	80	10.3	11.0	7.7	10.0
    Other and unclassified						30	6.1	6.1	5.8	3.5

    	By type of administrator
    Total—all types		161,750	128,340	32. 610	800	100.0	100.0	100.0	100.0

    Employer or employer associa-
    tion			142,470	116,910	24,970	590	88.1	91.1	76.6	73.8
    Joint employer-employee board
    of trustees. 				10,810 2,970 5,500	4,280 2,630 4,520	6,390 300	140	6.7	3.3	19.6	17.5
    Employee organization					40	1.8	2.0	.9	5.0
    Other and unclassified...				950	30	3.4	3.6	2.9	3.7

    Table 3.—Value of assets of 100 largest welfare and pension plans 1 in terms of total assets, 1959-61 2
    Type of asset	Value of assets (000 000)			Percentage distribution
    	1961	1960	1959	1961	1960	1959
    Total, all large plans Total—all assets	 Cash		$20,100.5	$17,791.9	$16,021.2	100.0	100.0	100.0
    	220.1 19,216.3	155.0 17,048.9	157.5 15,336.1	1.1 95.6	0.9 95.8	1.0 95.7
    Investment assets		 __
    Bonds and debentures	 Government obligations	 Non-govemment bonds	 Stocks			 Preferred	 Common			 Other investment assets	 All other assets
    	9, 756.1	9,365. 5	8,852.3	48.5	52.6	55.3
    	1,477.1 8,279.0	1,475.3 7,890.1	1,555.0 7,297.3	7.3 41.2	8.3 44.3	9.7 45.5
    	7,957.5	6,320.8	5,398. 0	39.6	35.5	33.7
    	245.5 7, 712.0	258.8 6,062. 0	289.9 5,108.1	1.2 38.4	1.5 34.1	1.8 31.9
    	1, 502. 6	1,362.6	1,085.9	7.5	7.7	6.8
    	664.2	588.0	527.6	3.3	3.3	3.3
    i Except for 1 supplementary unemployment benefit plan, all are pension or retirement plans. A few of the pension plans also provide some welfare type benefits.
    2 Data included are for plans having fiscal, policy, or contract years ending between Jan. 1 and Dec. 31 of the specified year.
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    Table 4.— Value of self-funded assets of all welfare and pension plans, 1959-60 1
    Type of asset	Value of assets (000 000)
    	All plans	100 largest plans2
    		Total	Plans with—			All other plans
    			$1,000,000,000 or more	$500,000,000 to $999,999,999	$50,000,000 to $499,999,999
    1960
    Total—all assets		$33,368. 9	$17,791.9	$3,860.7	$1, 732.0	$12,199. 2	$15,577.0
    Cash.	 		903.3	155.0	45.6	2.0	107.3	748.3
    Investment assets		31,498.1	17,048.9	3,721.8	1, 682.3	11, 644. 8	14,449. 2
    Bonds and debentures		18, 298. 9	9,365. 5	1,143. 7	1,090. 8	7,131.0	8,933.4
    Government obligations.	3,909.9	1,475.3	198.0	107.1	1.170. 2 5,960. 8	2,434. 6
    Non-government bonds.	14,388.9	7,890.1	945.7	983.7		6,498.8
    Stocks		11, 342.0	6,320.8	2,138.9	551.9	3,630.0	5,021. 2
    Preferred			703.2	258.8	3.6	65.4	189.9	444.4
    Common		10, 638. 7	6,062.0	2,135.3	486.5	3,440. 2	4, 576. 7
    Other investment assets		1,857. 2	1,362.6	439.2	39.6	883.8	494.6
    All other assets		967.6	588.0	93.3	47.6	447.0	379.6
    1959
    Total—all assets		30, 236. 5	16,021. 2	2.593. 4	1,524.3	11,903. 5	14,215.3
    Cash				783.1	157.5	31.1	4.7	121.7	625.6
    Investment assets	.	28,591. 9	15,336.1	2,494. 3	1,497. 7	11,344.0	13, 255. 8
    Bonds and debentures		17, 289. 5	8,852.3	622.7	1,003. 9	7,225.7	8,437. 2
    Government obligations.	3,953.4	1, 555.0	146.1	85.6	1,323. 2	2,398.4
    Non-government bonds.	13,336.1	7, 297.3	476.6	918.2	5,902. 5
    Stocks		9,738. 2	5,398.0	1,654. 4	316.2	3,427.4	4,340. 2
    Preferred	... .. .._	751.1	289.9	3.7	.0	286.1	461.2
    Common		8,987.1	5,108.1	1,650. 7	316.2	3,141. 2	3,879.0
    Other investment assets		1, 564. 2	1,085.9	217.2	177.6	691.0	478.3
    All other assets		861.5	527.6	68.0	21.9	437.8	333.9
    1960
    Total—all assets		100.0	100.0	100.0	100.0	100.0	100.0
    Cash						2.7	0.9	lT	0.1	0.9	4.8
    Investment assets		94.4	95.8	96.4	97.1	95. 5	92.8
    Bonds and debentures		54.8	52.6	29.6	63.0	58.5	57.3
    Government obligations.	11.7	8.3	5.1	6.2	9.6	15.6
    Non-government bonds.	43.1	44.3	24. 5	56. 8	48. 9
    Stocks		34.0	35.5	55.4	31.9	29.8	32.2
    Preferred			2.1	1.5	0.1	3.8	1.6	2.9
    Common		31.9	34.1	55.3	28.1	28. 2	29. 4
    Other investment assets		5.6	7.7	11.4	2-_3_		7.2	3.2
    All other assets		2.9	3.3	2.4	2.7	3.7	2.4
    1959
    Total—all assets		100.0	100.0	100.0	100.0	100.0	100.0
    Cash		2.6	1.0	1.2	0.3	1.0	4.4 93.3
    Investment assets		94.6	95.7	96.2	98.3	95.3
    Bonds and debentures		57.2	55.3	24.0	65.9	60.7	59.4
    Government obligations.	13.1	9.7	5.6	5.6	11.1 49.6	16.9 42.5
    Non-government bonds.	44.1	45.5	18.4	60. 2
    Stocks. 		32.2	33.7	63.8	20.7	28.8	30.5
    Preferred			2.5	1.8	.1	.0	2.4	3.2 27.3
    Common		29.7	31.9	63.7	20.7	26.4
    Other investment assets		5.2	6.8	8.4	11.7	5.8		3.4
    All other assets		2.8	3.3	2.6	1.4	3.7	2.3
    1 Data included are for plans having fiscal, policy, or contract years ending between January 1 and December 31 of the specified year.	„	.	.._____. ,____	. .
    2 Except for 1 supplementary unemployment benefit plan, all are pension or retirement plans. A few of the pension plans also provide some welfare type benefits.
    105
    OFFICE OF FEDERAL EMPLOYEE-MANAGEMENT RELATIONS
    Executive Order 10988, entitled “Employee-Management Cooperation in the Federal Service,” was signed by President Kennedy on January 17, 1962. The order established the right of all employees in the Federal Government to join and participate in the activities of employee organizations, and to seek to improve working conditions and the resolution of grievances by participating through their representatives in the formulation and implementation of employee policies and procedures which affect them. Recognition of this right contributes to the effective conduct of the public business.
    The Office of Federal Employee-Management Relations was established as part of the Labor Department’s Labor-Management Services Administration to perform the functions of the Secretary under section 11 of Executive Order 10988 which includes (1) handling agency or employee organiza-zation requests for the nomination of arbitrators in cases involving appropriateness of units for the purpose of exclusive recognition or questions as to majority status determinations and (2) giving such assistance as may be appropriate to Federal agencies in connection with advisory decisions or determinations.
    During the 1964 fiscal year, the Office processed 39 requests for the nomination of arbitrators filed by Federal agencies and employee organizations. Within this period, 17 arbitrators were selected and 23 advisory decisions issued. Multiple requests involving the same installation were consolidated to avoid unnecessary costs or delays. This resulted in 11 requests for arbitration being considered in 5 proceedings.
    The broadening awareness of interest in the Executive order has been further stimulated by the authorization of voluntary dues check-off procedures. This has given rise to increased organizational activities and a rising need for advisory and technical services in the administration of Executive Order 10988, the Standards of Conduct for Employee Organizations, and the Code of Fair Labor Practices in accordance with sound principles and practices for meaningful, constructive employee-management relations in Federal agencies.
    The Office has issued a continuing series of rules, guidelines, reports, interpretations, and decisions designed to assist Government agencies and employee organizations in the effective implementation of the requirements of the order. Among these have been the issuance of rules for the nomination of arbitrators, a contract-bar amendment to the rules, a procedural guide for advisory arbitration proceedings, a procedural guide for majority status determinations, a summary of the activities of the Office for 1963, and eight reports summarizing significant interpretations or decisions by the Secretary. A summary and analysis of Federal employee unit arbitration was published in cooperation with the Office of Labor-Management Policy Development. Activities of the Office also called for a continuing
    106
    program of assistance to Government agencies and employee organizations in their training and education programs, and the periodic review of rules and regulations pertaining to the Executive order.
    OFFICE OF VETERANS’ REEMPLOYMENT RIGHTS
    The Office of Veterans’ Reemployment Rights provides a service through which ex-servicemen and their former employers may understand and comply with veterans’ reemployment rights legislation guaranteeing ex-servicemen rights to return to their pre-service employer following completion of their military service. The rights and benefits of the law are available to members of any branch of the Armed Forces, as well as to National Guardsmen, reservists, and rejectees.
    It was not until near the end of the fiscal year that activities of the Office of Veterans’ Reemployment Rights were placed in the Labor-Management Services Administration. All operations have remained essentially as they were, and the new relationship promises profitable field associations with other departmental personnel engaged in negotiations between labor and management.
    During the year, field representatives of the Office participated in negotiations between employers and ex-servicemen involving several hundred cases, the objective of each being to bring about the serviceman’s restoration to employment without loss because of his time in the Armed Forces.
    A centralized automated operation has made more efficient the handling of requests from ex-servicemen. This operation is the culmination of planning carried on over the past several years. It will permit the handling of general information activities on a systematized basis, and at the same time free professional field personnel for the more demanding work of investigating complaints and requests for assistance from the veteran completing honorable service in the Armed Forces.
    The development of this program was mateiially aided by the cooperation of the Department of Defense. Through the five divisions of the Armed Forces, which collectively separate half a million men each year, initial steps were completed to reduce paperwork for employers and for returning ex-servicemen.
    The U.S. Supreme Court resolved many complex seniority problems through two decisions in April 1964 concerning ex-servicemen who had been reemployed in training positions. Both involved employees of railroad companies, but the effect of the decisions will extend to other organizations which have regular employee training programs. In essence, the Court held that the Universal Military Training and Service Act provides only for the restoration of the returning veteran to the same training level he occupied before entering service where advancement depends upon the completion of a training period; but, once having satis
    107
    factorily completed training, the employee could insist upon a seniority date which took into account the time spent in military service.1
    During the year, a significant guide relating to veterans’ reemployment rights matters was developed through an informative review of nearly 600 court decisions dealing with reemployment rights problems arising under the Universal Military Training and Service Act. Published in two looseleaf volumes, the “Legal Guide and Case Digest” is the result of coordinated efforts of staff members and the Office of the Solicitor. It is useful for employers, employer organizations, and ex-servicemen, and has already proved an excellent aid in clarifying the law where misunderstandings arise with regard to the reemployment of veterans. The guide contains interpretations of the Secretary of Labor as to the meaning of the statute in the light of the decisions.
    OFFICE OF LABOR-MANAGEMENT POLICY DEVELOPMENT
    This Office carries out the Department’s research and analysis activities relating to the administration of the labor-management and welfare-pension reporting and disclosure laws. It also provides appropriate review and appraisal of the broad implications of public and private policies affecting labor-management relations and collective bargaining. The staff members of this Office were provided through transfer of the former staff of the premerger Division of Research and Statistics, Bureau of Labor-Management Reports.
    The Office in 1964 continued its role of providing research analyses designed to illuminate and explore problem areas in the operation of the reporting and disclosure laws, and to provide supporting data and research concerning various aspects of union government and administration for use by the Office of the Solicitor in court cases. An extensive review of the election of union officers under the Labor-Management Reporting and Disclosure Act was completed, and briefing sessions on its findings were conducted for the investigation, compliance, and technical assistance personnel of the Office of Labor Management and Welfare-Pension Reports.
    The Office assisted the Office of Federal Employee-Management Relations in the development of a proposed research program to examine the operations and experience of Federal agencies and their employee representatives under Executive Order 10988 (Federal Employee-Management Cooperation). The publication of a report entitled “Federal Employee Unit Arbitration” marked the initial research effort in this area of Federal employee-management relations.
    i Tilton v. Missouri Pacific Railroad, 84 S. Ct. 595, and Brooks v. Missouri Pacific Railroad, 84 S. Ct. 578.
    108
    BUREAU OF EMPLOYEES’ COMPENSATION
    749-199—05----8
    BUREAU OF EMPLOYEES’ COMPENSATION
    The Federal workmen’s compensation system as we know it today dates back to September 7, 1916. At that memorable time nearly a half century ago, a unified and institutionalized plan was launched to provide medical and compensation benefits for civil employees injured in the performance of duty. Further legislation increased the scope of the plan to cover certain private employment within exclusive jurisdiction of the Federal Government. Since May 24, 1950, the Bureau of Employees’ Compensation, which administers the various acts comprising the system, has been an integral part of the U.S. Department of Labor.
    Indicative of the scope and magnitude of the effective coverage, the distribution of the 227,152 reported injuries during 1964 was as follows:
    Civilian Federal employees.......................................... 109,	623
    Longshoremen and harbor workers...................................... 75,	613
    District of Columbia private employees............................... 32,	305
    Nonappropriated Fund employees........................................ 4,	377
    Defense base workers.................................................. 3,	239
    Outer Continental Shelf workers.....................................   1,	995
    The precise number of workers covered in the event of a work injury is not known but is believed to be approximately 3-5 million, of which a known 2.5 million are civil employees of the Federal Government and 275,000 are employees of private industry in the District of Columbia.
    There was little or no significant change in the number of injuries reported under the civilian Federal employee coverage, while in every sector of private employment coverage there was a noteworthy increase, averaging nearly 7 percent. Mounting costs were discernible in all areas, with $72 million expended for the Federal act coverage and $20 million for the closed-case private employment coverage, up 5-7 percent and 9-2 percent, respectively. Of the $72 million for Federal act cases, nearly one-fourth was attributable to legislative extensions to certain groups such as some military reservists, enemy action victims, as well as persons covered under civilian war benefits, maritime war risks, Reserve Officers Training Corps activities, and the emergency relief acts of the 1930’s. A high proportion of the cost under both programs was generated by long continuing and fatal injury cases. All compensation benefits authorized under private employment jurisdiction are paid by the employer direct or through his authorized insurance carrier, but the cost of administration is borne by the Federal Government.
    The Bureau now has 15 district offices to expedite the servicing and adjudication of these cases of personal injuries resulting from occupational accidents. There is continued empirical evidence that the local adjudicatory system, together with significant advances in administrative techniques,
    111
    has achieved substantial reductions in the time required to bring economic aid to the injured and their families. Much remains to be accomplished, however, in expediting the submission of properly prepared claim forms, together with complete and accurate documentation of the circumstances contributing to the accidental work injuries. Continued research during the first half of the year disclosed that 76-1 percent of the claims were certified for payment within 5 work days after reaching the local district claims branch, comparing favorably with 73-2 percent recorded for the same period in 1963.
    FEDERAL EMPLOYEE INJURIES
    The 109,623 work injuries reported by civilian Federal employees in fiscal 1964 established an 18-year record high. The total was 10.6 percent higher than the average of 99,138 cases for the current 3-year base period of 1957-59. The 388 deaths reported were 37 more than the year before, and schedule awards for permanent injuries were also higher, rising from 1,822 to a total of 1,960, up nearly 8 percent. Although white-collar and clerical-type occupations predominate in the 2.5 million civilian Federal employment, there is a hard-core level of over 600,000 blue-collar workers whose duties encompass many inherently high-risk operations. A study released in June 1964 by the Civil Service Commission indicates 35 industrial-type job family groups, the 8 numerically highest of which include mobile industrial equipment operation and maintenance, manual labor, fixed industrial equipment operation and maintenance, warehousing, services, metal works, aircraft repair, and electrical installation and maintenance.
    An actuarial study made by the Bureau during 1964 covering the casualty rates incurred in the previous calendar year shows that there are 8 Federal executive departments and 14 Federal independent agencies which maintained a frequency rate below 5-3 disabling injuries per million man-hours of exposure. Employing 1.3 million persons, or over half of the entire civilian Federal group, these establishments led the way in showing that it is economically and technically feasible to complete a full year of work 99 percent free of a disabling injury and usually retain severity rates substantially below the average. Experience of this kind is significantly better (33 percent) than the average of the entire civilian Federal Government.
    During the fiscal year 1964, nearly 146,000 cases were serviced, providing medical, hospitalization and surgical care, disability compensation, vocational rehabilitation, attendants’ allowances, survivors’ benefits, and burial expenses. This reflects an increase of 8 percent from the previous year. The largest expenditure was for disability compensation for regular civilian Federal employees, amounting to $32.3 million, nearly 45 percent of the $72 million disbursed. Death compensation of $27-6 million, or 39 percent of the total, consisted of $16.1 million for families of military
    112
    reservists and $11-5 million for families of fatally injured civilian employees. Medical treatment and supplies cost $10.1 million, or 14.4 percent of the total. Practically all of the other disbursements were for fringe act benefit cases, principally for the remaining emergency relief cases of the 193O’s; the enemy action, maritime war risk, and civilian war benefit acts; as well as for injured members of the Civil Air Patrol and the Reserve Officers Training Corps.
    Research during 1964 highlights the causal and concomitant growth factors related to this cost, which has spiraled nearly 17 percent above the level of the 3-year base period 1957-59. Average employment coverage has increased 5 percent, and more importantly, the wage base upon which compensation benefits are computed in newly reported cases has risen nearly 23 percent. The annual total of cases reported has climbed significantly, up almost 11 percent. The cost of providing medical treatment, hospitalization, and allied restorative supplies and services has mounted by more than 30 percent, and the annual number of medical payments by 28 percent. Actuarial evaluations of the ultimate total direct cost to the Government for the currently incurred nonfatal disabling injury show a rise from $489 in the base period to $590, up 21 percent. Comparable studies for approved fatal cases show an increase of 28 percent, from an average of $48,879 in the base period to the current figure of $62,486.
    During the year, medical care facilities of the United States Public Health Service continued to be used to a large extent, as well as hospitals of the Army, Navy, Air Force, and Veterans’ Administration. About 3,000 physicians in private practice are designated to provide medical care in cities where no Federal medical facilities are available.
    Studies disclosed that Federal Government medical facilities continued to be the primary source of care. Fewer than 15 Public Health Service hospitals serviced 36 percent of those hospitalized. Designated physicians chosen by the Bureau of Employees’ Compensation treated nearly 60 percent of the nonhospitalized cases requiring more than outpatient treatment. Where outpatient treatment only was required, Federal facilities, principally Public Health Service hospitals and clinics, serviced 88 percent.
    The number of permanently disabled employees rehabilitated during the year rose sharply to 413, or nearly 100 more than the year before. The Bureau’s Division of Rehabilitation provides such services to beneficiaries of both the Federal Employees’ Compensation Act and the private employment acts subject to Federal jurisdiction. Of the 413 rehabilitated persons, 117 were provided vocational retraining and returned to suitable employment in a variety of occupations. Services and facilities of Federal, State, and where necessary, private agencies were used to help provide vocational aid. The trainees were given counseling, vocational evaluation, job placement assistance, and a maintenance allowance where necessary, in addition to their compensation payments. Registration fees and tuition were also paid, with books and supplies provided, when such were not available to the trainee through facilities used in cooperation with the
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    State-Federal vocational rehabilitation programs for handicapped persons. At the same time, suitable work was made possible for the remaining 296 claimants through personal counsel and cooperative contacts with the State employment and rehabilitation personnel and governmental establishments. At year’s end, 142 beneficiaries were taking approved vocational retraining courses under the sponsorship of the Bureau. The most important value achieved is that of restoration of self-respect and self-sufficiency of the disabled employees, and their return to a life of usefulness and dignity. There are also significant economic gains for society, augmenting the Nation’s manpower and returning to the community in State and Federal taxes the major part of the rehabilitation costs incurred.
    During the year, the Bureau paid compensation benefits in the sum of $26.7 million on account of injuries and deaths occurring after December 1, 1960. This is the actual amount disbursed and does not represent the total cost of compensation benefits for these injuries, because additional benefits in many of the more serious cases will be payable in future years. Statements, as required by Public Law 86-767 (74 Stat. 909), were forwarded to executive departments and agencies showing the amount to be included in their budget estimates for fiscal year 1966 to repay the compensation fund for the cost of benefits paid from this fund on account of such injuries to their employees. This represents the third full fiscal year under this law, and the amount for 1964 is 29 percent more than that for 1963- Total billings to June 30, 1964, under this provision amount to $63-5 million. The full economic impact of these work injuries is therefore reflected directly in the operating costs of the various Federal departments and agencies.
    PRIVATE EMPLOYMENT INJURIES
    In 1962, the United States Supreme Court held that the Longshoremen’s and Harbor Workers’ Compensation Act was applicable to workers engaged in the construction of new vessels. It was previously generally accepted that new ship construction was validly covered under State compensation laws. As anticipated, this decision resulted in a substantial increase in the number of injuries reported to the Bureau under this act. The annual average number of reported injury cases from harbor workers since the decision has more than doubled. Work injuries to longshoremen doing offshore stevedoring increased slightly, up 2.4 percent from 1963. During 1964, a total of 75,613 cases was reported by longshoremen and harbor workers. Evaluation of cases closed under this act, excluding medical costs, increased to $15-1 million, a rise of 38 percent from the 3-year base period 1957-59. At the end of the year, 18,943 cases remained open, 6,496 of which were being paid compensation. The remaining 12,447 were awaiting more complete information, investigation, formal hearings, court action, third-party settlements, and similar administrative action. There are presently 290 insurance companies approved to write compensation co/erage under this act and 225 employers allowed to self-insure.
    114
    The second largest group under private employment coverage subject to Federal jurisdiction are the nearly 300,000 employees of private enterprise in the District of Columbia, covered originally by the act of May 17, 1928, extending the Longshoremen’s and Harbor Workers’ Compensation Act. With 32,305 cases reported during 1964, nearly 1 in 10 such employees suffered a reportable work injury. A study of the industries affected and the relative changes in the number of injuries reported shows the following:
    Industry	1963	1964	Percent change
    Construction		 ..	7,914 7,087 5,737 3,165 1,920 1,447 902 735 494 385 137	9,084 7,211 6,387 3,374 2,028 1,451 926 762 510 353 219	+14.8 +1.7 +11.3 +6.6 +5.6 +0.3 +2.7 +3.7 +3.2 -8.3 +59.9
    Retail trade		 _
    Services	 			 _
    Manufacturing	 	 _
    Wholesale trade		 ..
    Transportation
    Electric, gas, sanitary services		 .
    Real estate. 1	1	 _
    Communication		 _
    Finance; insurance	 	_ _
    Nojurisdiction
    Total	 __ .
    	29,923	32,305	+8.0

    Cases closed during the year, exclusive of medical cost, are evaluated at $2.7 million, 18 percent above the average for the previous 3-year period. On June 30, 1964, there were 1,190 employees receiving disability benefits and 284 families of fatally injured employees receiving survivors’ benefits. There are 163 insurance companies approved to write workmen’s compensation business in the District of Columbia, and 52 employers are presently allowed to self-insure.
    The principal remaining groups of employees covered include (1) workers employed at military bases outside the United States, who reported 3,239 injuries this year, 35 percent more than in 1963; (2) employees on the Outer Continental Shelf, exploring and developing natural resources, nearly 2,000 of whom were injured, up 33 percent; (3) civilian employees working at certain military post exchanges, motion picture services, and related activities paid from nonappropriated funds, with 4,377 injuries reported, 18 percent above the previous year’s total. Included in these groups are certain employees of contractors with the United States engaged in public work outside the States, as well as contracts approved by the Agency for International Development under the Mutual Security Act; and employees engaged in services for American employers providing welfare services for the Armed Forces outside the United States.
    The professional task of determining the precise merits of all these injury cases entails considerable administrative work. During 1964, there were 36,220 personal interviews with claimants and employers, or their representatives, 13,583 informal conferences relating to claims, 3,274 independent medical examinations, and 470 formal hearings completed. On June 30, 1964, there were 9,261 families or individuals receiving compensation benefits, nearly 9 percent more than at the close of the year before Included are 1,190 families of fatally injured workmen.
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    Table 1.—Operations under the Federal Employees’ Compensation Act,1 July 1, 1959, to June SO, 196^
    116
    i Excludes emergency relief acts except where specifically indicated; includes re- of Employees’ Compensation, the value of days’ leave of absence with pay durmg servists of the Armed Forces, except where specifically excluded.	disability, and includes evaluated future cost in open cases that occurred in the years
    2 Frequency refers to number of disabling injuries; severity refers to number of days covered. Rates, averages, and totals in C, H, and J are preliminary for 1904. disabled or charged. Cost includes incurred direct expenditures payable by the Bureau
    117
    Table 2.—Operations under the Longshoremen’s and Harbor Workers’ Compensation Act and extensions thereof, July 1, 1959, to June SO, 196 4
    Item	Average 1957, 1958, and 1959	Fiscal year
    		1960	1961	1962	1963	1964
    A. Injury cases reported:
    Nonfatal		100,997 193	87,097 205	88,012 181	89,072 162	109,783 214	117,324 205
    Fatal

    Total	 -	101,190	87,302 86	88,193 87	89,234 88	109,997 109	117,529 116
    Index	 -		'100

    B. Kinds of employees injured:
    Longshoremen		33,168 35,043 4,866	31,359 20,143 4,136	29,182 22,710 3,929	29,461 22,115 3,234	27,675 44,797 2,399	28,340 47,273 3,239
    Harbor workers
    Defense base workers
    District of Columbia private
    employees	 _			26,392 1,306	27,546 1,264	27,832 1,335	29,569 1,425	29,923 1,495	32,305 1,995
    Outer Continental Shelf	 Nonappropriated Fund
    		2,854	3,205	3,430	3,708	4,377

    Total		100,775	87,302	88,193	89,234	109,997	117,529

    C. Final disposition of injury cases:
    Number of cases closed (in-
    eludes reclosures):
    Longshoremen’s and
    Harbor Workers’ Compensation Act	70,698	55,350	58,169	56,874	76,076	79,691
    District of Columbia
    Workmen’s Compensation Act				27,218 4,973	27,885 4,676	29,167 4,152	30,212 3,122	31,185	33,265 2,571
    Defense Base Act						2', 451
    Outer Continental Shelf
    Lands Act	 .	1,313	1,328	1,373	1,566	1,520	2,067
    Nonappropriated Fund
    Act			2,676	3,293	3,320	3,425	4,276

    Total		104,202	91,915	96,154	95,094	114,657	121,870

    Evaluation of cases closed
    (excluding medical):
    Longshoremen’s and
    Harbor Workers’ Compensation Act		$10,979,362	$12,545,584	$12,744,882	$12,461,093	$13,062,788	$15,132,844
    District of Columbia
    Workmen’s Compensation Act „ - —		1,592.612	1,713,960 2, 033,381	2,017,017 1,169,709	2,115,142 1,613,731	2,722,961 1,151,970	2,688,056 776,442
    Defense Base Act		980,407
    Outer Continental Shelf
    Lands Act			254,699	602,472	575,741	809,452	708,503	624,908
    Nonappropriated Fund
    Act 	- -			60,861	168,202	194,915	218,413	289,017

    Total		13,807,080	16,956,258	16,675,551	17,194,333	17,864,635	19,511,267

    D. Number of fatal awards made
    during the year:
    Longshoremen and harbor
    workers._			55	63	32	97	44	48
    District of Columbia private
    employees	 - 		22	21	23	18	20	21
    Defense base workers		9	2	12	21	30	2
    Outer Continental Shelf
    Lands Act workers.—			3	0	10	10	5	5
    Nonappropriated Fund Act
    workers			0	0	0	2	0

    Total		89	86	77	146	101	76

    E. Number of cases still active:
    Longshoremen and harbor
    workers	 		14,761 3,275	16,161 4,065	14,814 3,799	15,836	17,611 4,425	18,943
    District of Columbia workers.				4,375		4,870
    Defense base workers... . ..	1,427	1,301	1,365	1,681	1,706	2,459
    Outer Continental Shelf
    Lands Act workers	 _.	356	426	513	511	649	733
    Nonappropriated Fund Act					1,237	1,499
    workers			545	588	827

    Total		19,819 100	22,498 114	21,079	23,230 117	25,628 129	28,504
    Index				'106			144
    118
    Table 2.—Operations under the Longshoremen's and Harbor Workers’ Compensation Act, and extensions thereof, July 1, 1959, to June 30, 1964—Continued
    Item	Average 1957, 1958, and 1959		Fiscal year
    		1960	1961	1962	1963	1964
    F. Kind of insurance coverage: Insurance companies: Longshoremen’s and Harbor Workers’ Act__ District of Columbia Act. Defense Base Act	 Outer Continental Shelf Lands Act	 Nonappropriated Fund Act	 Self insurers: Longshoremen's and Harbor Workers’ Act.. District of Columbia Act-Defense Base Act	 Outer Continental Shelf Lands Act	 Nonappropriated Fund Act		281 139 87 89 257 65 16 10	283 147 96 98 115 240 63 9 6	281 150 99 102 119 236 58 9 8	284 158 108 112 128 227 55 11 8	288 164 112 120 131 232 55 9 9	290 163 115 130 132 225 52 13 9

    Table 3.—Appropriations and expenditures, fiscal years 1960-64
    Period covered	Salaries and expenses			Compensation benefits
    	Total funds available 1	Total expenditures, all acts, including estimated obligations 1	Net expenditures, Federal act, including estimated outstanding liabilities at end of the fiscal year	Total funds available	Net expenditures
    Year ending June 30: 1960 		$3,362,700 3,702,200 4,133,057 4,329,630 4,639,000	$3,359,884 3,701,537 4,122,878 4,329,383 4,636,452	$2,007,132 2,238,219 2,610,760 2,728,738 2,899,591	$59,930,539 63,000,000 64,000,000 68,149,685 72,000,000	$59,930,539 62,175,949 63,995,330 68,134,584 71,994,147
    1961
    1962.
    1963
    1964

    Includes funds made available to the Employees’ Compensation Appeals Board.
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    Table 4.— Trust fund accounts for fiscal years 1960-64,1 Longshoremen’s and Harbor Workers’ Compensation Act
    	1960	1961	1962	1963	1964
    Balance, July 1... 		$733,150.04 27,929.24	$691,717.27 25,327,47	$591,180.53 25,842.83	$590,182.49 29,857.04	$475,448.31 26,286.28
    Receipts, fiscal year
    Total
    	761,079.28	717,044.74	617,023.36	620,039.53	501,734. 59
    Expenditures: Purchase premium
    	128. 00	890.00
    Purchase accrued interest
    Repayment to insurance carrier
    Compensation, section 8(f)		4,057.20 17,912.30 5,148.34	3, 468.44 17,785.54 8,052.31	3,747.60 18,817.03 3,876.24	7,147.95 17,636.93 5,679.54	3,820.31 16,303.66 6,243.13
    Compensationj section 8(g)
    Prosthetic appliances
    Transportation
    Reimbursement to salaries and ex- penses	 _ ______	31,077.17	92,747.12		2112,860.00	60,000. 00
    Discount on purchase of investments .
    Unaccrued investment yield on redeemed securities		11,039.00	2,920.80		1,266.80	-47. 50
    Total
    	69,362.01	125,864.21	26,440.87	144,591.22	86,319.60
    Balance, June 30
    	691,717.27	591,180.53	590,582.49	475,448.31	415,414.99

    i Adjusted through June 30,1964.
    2 For fiscal years 1962 and 1963.
    Table 5.— Trust fund accounts for fiscal years 1960-64, District of Columbia Compensation Act
    	1960	1961	1962	1963	1964
    Balance, July 1					$127,095. 56 7,625.24	$129,040.70 9,557.96	$133,298.98 9,691.84	$139,001. 09 8,881.16	$139,462.62 7,499.44
    Receipts, fiscal year	 		-
    Total
    	134,720.80	138,598.66	142,990.82	147,882.25	146,962.06
    Expenditures: Compensation, section 18(b)
    	577.72	577. 72 292.86	533.28 1,235.38	488.84 1,443.24 2,819.15 3,668.40	6,859.36 635.71 382.43 3, 901.58
    Compensation^ section 8(g)_
    Compensation^ section 8(f)(1)
    Prosthetic appliances	.1	 		4,948.78	4,375.70	2,208.94
    Transportation-
    Purchase accrued interest		-
    Discount on purchase of investments. _
    Purchase premium 		153.60	53.40	12.13
    Total
    	5,680.10	5,299.68	3,989. 73	8,419.63	11,779.08
    Balance, June 30
    	129,040.70	133,298.98	139,001. 09	139,462.62	135,182.98

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    EMPLOYEES’ COMPENSATION APPEALS BOARD
    EMPLOYEES’ COMPENSATION APPEALS BOARD
    The Employees’ Compensation Appeals Board is a three-member quasijudicial body with exclusive jurisdiction to hear and decide appeals from final decisions of the Bureau of Employees’ Compensation in claims arising under the Federal Employees’ Compensation Act. The act provides for disability compensation and medical care, as well as vocational rehabilitation, for work-connected injuries or diseases sustained by Federal civilian employees and, in case of resulting death, compensation for their dependents. The Board’s procedures are informal and designed to permit an aggrieved employee or his dependents to pursue an appeal and to have a hearing without the necessity of legal assistance. However, he may designate an attorney or other representative.
    The Board began the fiscal year with 103 pending cases. During the year, 359 new appeals were filed and 338 cases were closed, thus ending the period with 124 cases. Seventy-four of these 124 cases were in some preliminary stage of processing in accordance with the Board’s Rules of Procedure and not in posture for Board decision. Of the 50 cases ready for Board action, 31 had been "decided” by the Board in executive session and were in the process of preparation of opinion. Therefore, at the close of the year there were actually only 19 cases awaiting Board action and its operations were current. The average time lapse between the date of filing of appeal to the date of closing was 5.2 months.
    Statistical summary of appeals subsequent to 1961 annual report
    	1962	1963	1964
    Carried forward				130 337	117 345	103 359
    New cases
    Total docket
    	467	462	462
    Closed-
    	350 117	359 103	338 124
    Pending at yearend

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    BUREAU OF INTERNATIONAL LABOR AFFAIRS
    749-199—65----0
    BUREAU OF INTERNATIONAL LABOR AFFAIRS
    The increasing involvement of labor and manpower factors in the conduct of U.S. foreign affairs has broadened the participation of the Department of Labor in the international field—most notably in trade and tariff matters and technical assistance.
    The Department’s activities in the international field are directed by the Assistant Secretary of Labor for International Affairs and are centered in the Bureau of International Labor Affairs. The wealth of knowledge and experience gained in a wide range of domestic labor activity supports the Department in its international activities and permits it to play a significant role in the planning and development of broad foreign labor policies for the U.S. Government.
    In discharging its responsibilities, the Bureau has provided for: (1) utilization of U.S. overseas staff for expert factual and analytical reporting concerning the political, economic, and social problems of foreign labor; (2) research, by a competent Washington staff, on worldwide labor and manpower developments which affect U.S. foreign policies and operations, and a publications program to acquaint interested governmental and nongovernmental officials with these developments; (3) assistance in the formulation of effective foreign policies responsive to the particular labor and manpower situations in countries and regions; and (4) effective utilization of a variety of specific governmental action programs.
    During fiscal year 1964, the Bureau improved its budget and accounting procedures to provide more timely and accurate financial reports for program managers, thus making it possible to develop more effective financial estimates and better program planning.
    POLICY FORMULATION
    At the request of the Department of State, the Labor Department is taking an active part in a number of newly established interagency task forces. The latter are responsible for the National Policy Paper Series, which includes a special paper on the labor situation and U.S. labor policy in a particular country, and the comprehensive country programing system, which is a new programing system for foreign affairs operations.
    On the initiative of ILAB, the Departments of State, Commerce, Labor, and the Agency for International Development have established an interagency study group to explore methods of improving labor-management relations of U.S. firms and of Government agencies overseas.
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    The Bureau participated, as in the past, in international meetings such as the 48th International Labor Conference, the 18th Session of the United Nations General Assembly, and the IA-ECOSOC Committee on Labor Affairs, Lima, Peru. On a continuing basis, staff members advise the Department of Labor and other agencies in Washington and in the field on political and technical policies and programs for countries throughout the world. Specialists of the Bureau served on special assignments in Africa, Latin America, and Europe.
    OVERSEAS SUPPORT
    Considerable progress was made during the year in strengthening the Labor Department’s support of overseas programs in the labor and manpower fields. A new Office of Program Development and Coordination was formed in the Bureau to mobilize and make available the technical resources of the Department to assist less developed countries in the development of labor and manpower institutions necessary for economic growth.
    Two basically new concepts have been developed for Department of Labor participation in the international technical assistance field:
    1. An international technical assistance corps has been instituted by the Department to provide a reservoir of labor-manpower experts and technicians for service in the less developed countries of the world. The corps will enable the Department to improve greatly the quality of overseas technical assistance in the labor and manpower fields which is being carried on by the Agency for International Development and various international organizations, particularly the International Labor Organization.
    2. A new method has been developed to facilitate continuing Department assistance for ministries of labor and labor and manpower programs in specific foreign countries. Under a contractual arrangement between the Department and the AID mission in a particular country, the Department will develop a small team of labor and manpower technicians who will be available to assist, on a continuing basis, the less developed country.
    The Bureau has made available to the Voice of America, at the latter’s request, a liaison officer to improve VOA overseas broadcasts concerning labor and manpower factors abroad.
    RESEARCH AND PUBLICATIONS
    In following international trade union developments, the Bureau collects, analyzes, and disseminates data on international and foreign labor organizations; prepares functional studies in the international labor field, including monographs of international trade secretariats and other organizations in less developed countries established to meet specific needs of the workers; compiles and processes biographic material on foreign trade union leaders for whom data is not elsewhere available in U.S. Government agencies;
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    and maintains liaison on these subjects with other Federal agencies, American trade unionists, and representatives of the international trade union movement.
    During the year, the Bureau published revised editions of the “Trade Union Directory for Asia and Australasia,’’ the “Trade Union Directory for the International Federation of Christian Trade Unions,’’ and the “Trade Union Directory for the International Confederation of Free Trade Unions.” In addition, the “Trade Union Directory for the Western Hemisphere” was brought up to date and was scheduled for publication in the fall of 1964.
    ILAB’s bimonthly publication, “International Labor,” was given a new format. This publication has attained a wide degree of interest in the international labor community.
    SPECIFIC ACTION PROGRAMS
    The following action programs of the Bureau of International Labor Affairs are directed toward achievement of U.S. foreign policy goals:
    Foreign Economic Policy
    ILAB represents the Department in, and provides the staff work for, the Department’s participation in the interdepartmental formulation of U.S. Government positions in foreign economic matters.
    During the past year, preparations for the Kennedy Round, or 6th multilateral tariff conference under the General Agreement on Tariffs and Trade (GATT), were greatly accelerated. The Bureau has participated intensively in the work of the interagency committee structure set up under the Trade Expansion Act of 1962, under which the United States will take part in the tariff conference. The Bureau has furnished members and alternates of the Trade Staff Committee and of numerous subcommittees which have worked continuously throughout the year on these preparations. It has also provided staff support to the Assistant Secretary for International Affairs who represents the Department on the Trade Executive Committee, which directly advises the President’s Special Trade Representative.
    Within the Department, ILAB has had the assistance and cooperation of other interested bureaus in carrying on the research necessary for the formulation of the Department’s position on the economic-labor problems related to the reduction of trade barriers.
    The Bureau participated in meetings of the GATT Cotton Textiles Committee, the 21st annual GATT session, committees dealing with the trade problems of less developed countries, and the May 1964 GATT meeting which formally opened the tariff conference.
    ILAB represented the Department during the year on the interagency steering group which prepared for U.S. participation in the U.N. Confer
    129
    ence on Trade and Development, and fro m March to June 1964 represented the Department on the U.S. delegation to the conference. The Bureau also continued to represent the Department on the United Nations Economic Committee which prepares U.S. positions on matters brought before the U.N. Economic and Social Council.
    In addition, ILAB continued to participate intensively in the work of the Interagency Textile Administrative Committee, which administers the Long-Term Cotton Textile Arrangement providing for voluntary restraints on exports of cotton to the United States and other countries. In this connection, ILAB represented the Department on U.S. delegations to eight cotton exporting countries around the world.
    Exchange of Persons
    The Bureau coordinates the Department’s participation in programs for the training of foreign nationals and cultural exchange, and has primary responsibility for maintaining the Department’s relationships on such matters with the sponsoring agencies. Foreign visitors are assigned to the various parts of the Department according to their interest and program objectives.
    The Department had primary responsibility for arranging programs for 680 foreign visitors during the year. Of these, 452 came under the program of the Agency for International Development, 199 under the cultural exchange program of the Department of State, 9 under the United Nations technical assistance program, 19 under the ILO program. There were 340 from the American Republics, 133 from the Far East, 116 from the Near East and South Asia, 34 from Europe, and 57 from Africa. Included were 508 trade unionists, 135 government representatives, 27 from management, and 10 from other organizations. In addition, 819 visitors came for short periods; they were referred from other agencies, private organizations, foundations, and embassies. Among this group for which the Bureau arranged programs were the Ministers of Labor of Australia, Honduras, and Nigeria.
    Also during the year, the programs of 11 top officials were arranged by the Department. Three were union leaders; the others, including several Ministers from African countries, were interested in gaining a broad view of the American scene and had a primary interest in governmental labor administration.
    International Organizations
    The Office of International Organizations directs and coordinates the Department of Labor’s participation in the activities of the United Nations, specialized agencies of the United Nations, the International Labor Organization, the Organization for Economic Cooperation and Development, and other regional economic organizations. It also does functional research and disseminates information with regard to international trade union
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    organizations. The Office has a substantive role in three of these areas, while in the fourth it performs primarily a technical backstopping function.
    International Labor Organization
    During the past fiscal year, activities of the International Labor Organization continued at a high level in the fields of standard setting, research, and technical assistance in support of its objective of promoting balanced economic and social development in the developing areas of the world. The year ended with an ILO membership of 110, an increase of 2 over the year. The new members were Laos and Kenya.
    The 48th Session of the International Labor Conference, attended by 1,154 delegates and advisers from the 102 participating countries, was the largest and most productive in recent years.
    The U.S. delegation, led by Assistant Secretary of Labor George L-P Weaver, played a prominent role in the work of the technical and political committees of the Conference. The decisions of the session were consistent with U.S. policy objectives.
    A number of conventions and recommendations on technical items and three instruments for amendment of the ILO Constitution were adopted by the Conference. The instruments for amendment are subject to ratification by two-thirds of the 110 member states through their normal parliamentary procedures, including 5 of the 10 states of chief industrial importance. In addition, the Conference adopted a 1965 budget of $18,684,347. A main feature of the meeting this year was a discussion of the ILO programs and structure. Secretary of Labor W. Willard Wirtz addressed the Conference as a Visiting Minister, reflecting the views of the United States on these matters.
    Also during the year, the United States participated in the 157th, 158th, and 159th Sessions of the ILO Governing Body. Assistant Secretary Weaver, as U.S. Representative on the Governing Body, attended all three sessions. Among the significant actions taken by the Governing Body during the year were the following:
    1.	Approved the report of its committee on questions concerning the Republic of South Africa, and a program for the elimination of apartheid.
    2.	Approved instruments of amendment for consideration by the Conference in 1964 to amend Article 35 of the ILO Constitution and to provide procedures for the expulsion or suspension of members.
    3.	Developed the budget of more than $18 million for calendar year 1965 which was adopted by the 48th Session of the Conference.
    4.	Considered proposals developed by management consultants to improve the organization and structure of the ILO.
    5.	Approved a budget for the Inter-American Vocational Training and Research and Documentation Center.
    6.	Established an Inter-American Advisory Committee.
    7.	Approved the opening in early 1965 of the International Center for Advanced Training in Turin.
    8.	Established a permanent Committee on Discrimination, presently chaired by Assistant Secretary George L-P Weaver.
    United Nations
    The Department of Labor contributed to U.S. participation in United Nations agencies dealing with social matters by its activities in the interdepartmental committees developing U.S. policy, by its association in the interdepartmental formulation of Government positions, and through representation on U.S. delegations to various meetings.
    Regional Economic Organizations
    In the Organization for Economic Cooperation and Development, the Department played a major role in that Organization’s Manpower and Social Affairs Committee, for which it furnished the vice chairman. The Department actively participated during the year in a number of OECD manpower studies. The major study was the OECD examination of U.S. manpower policies and programs, which consisted of an exhaustive and critical review of the American manpower scene. The final meeting on this subject took place in Paris following an examination in the United States, in which the Under Secretary and other officials of the Department of Labor participated.
    International Exhibitions
    The Division of International Exhibitions expanded its program in fiscal year 1964 in both scope and quality. It participated in interagency fairs in Algiers, Algeria; Bamako, Mali; Berlin, West Germany; Casablanca, Morocco; Lima, Peru; Poznan, Poland; Rio de Janeiro, Brazil; and Zagreb, Yugoslavia.
    The objective of the Labor Department’s participation in international trade fairs is to present a true picture of the American worker and his environment. By providing a maximum opportunity for contact between American trade unionists and labor specialists with workers, students, and government officials in the host countries, the labor missions effectively accomplish the goals of the program. By supplementing the labor missions and labor exhibits with selected pamphlets translated into the language of the host country, the Labor Department achieves not only the important face-to-face contact with foreign leaders but also leaves behind printed and pictorial information detailing the American way of life.
    Participants for the trade fairs are selected from Government, trade unions, labor-related organizations, and private industry. A total of 32 were sent abroad, 26 of whom spoke a principal language of the area— French, German, Spanish, Portuguese, Polish, Arabic, or Serbo-Croatian.
    During the year, approximately 900,000 pieces of specially translated foreign language publications on American workers and trade unions were distributed through labor missions. The languages included Polish, Serbo-Croat, French, Arabic, Spanish, and German.
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    BUREAU OF LABOR STANDARDS
    BUREAU OF LABOR STANDARDS
    Consistent with the Department’s concern for the welfare of workers, the Bureau continued during 1964 to seek additional safeguards and protective measures for workers through the promotion of sound labor standards. As a service agency to States, unions, management, professional, scientific and civic organizations, the Bureau provided technical assistance and information in the areas of labor legislation and administration, migratory labor, youth services and employment standards, and occupational safety and health. Program adaptations to meet the needs of an increasing population, technological developments, and in general, the changing world of work were among the Bureau’s concerns in the year.
    LABOR LEGISLATION AND ADMINISTRATION
    The Bureau’s technical services in the field of labor legislation and administration assumed added importance in 1964 because of the relationship between sound labor standards and current efforts to eradicate poverty.
    General Working Conditions
    During the year, more than 1,500 technical services were given by the Bureau in 50 States, the District of Columbia, and Puerto Rico in such fields of labor law and programs for improvement of working conditions as workmen’s compensation, migratory agricultural labor, child labor, wages and hours, wage payment and wage collection, industrial relations, regulation of private employment agencies, discrimination in employment, and occupational safety and health. In addition to serving State labor agencies, the Bureau gave assistance to State legislative committees, Members of Congress, Federal agencies, management and labor organizations, civic and church groups, colleges, and other interested groups and individuals.
    Examples included technical assistance to Kentucky, Tennessee, and Arizona on proposed minimum wage legislation; to Alaska on a proposed child labor bill; to Florida, Illinois, Connecticut, New York, and Wisconsin on special problems affecting administration of their laws regulating private employment agencies; to Arkansas on occupational safety and health legislation; to Pennsylvania on experiences of States with laws prohibiting discrimination in employment for older workers; to Georgia and North Carolina on preparation of draft language for a wage payment and wage collection law; to Michigan on a draft bill for a proposed migratory
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    labor camp law; and to Arkansas in conducting a training course for State inspectors on wage, hour, and child labor inspection techniques and methods.
    The revision of the “Suggested Language for a State Bill Establishing a Fixed Minimum Wage’’ and the “Suggested Language for a State Bill Establishing a Fixed Minimum Wage and Wage Boards,” begun in 1963 in cooperation with the Women’s Bureau, was completed and copies distributed to the States for their guidance in considering such legislation. These drafts served as the basis for the development of proposals in a number of the State legislatures in 1964.
    In cooperation with the Women’s Bureau, a conference of State minimum wage administrators was sponsored by the Bureau to discuss and exchange ideas on major problems involved in improving minimum wage laws and in strengthening their administration.
    Regional conferences of State labor commissioners and statewide seminars on protective labor legislation were promoted by the Bureau as a means of improving State labor laws and programs aud increasing public awareness of the need for such legislation. A Western States regional conference of State labor agency officials was held in San Francisco and a similar one for Central States in Chicago. State seminars on labor legislation were planned and conducted by the Bureau in cooperation with interested groups in Arizona, Tennessee, and Maryland. Plans for similar seminars were developed in five additional States: Montana, Oregon, West Virginia, South Carolina, and Georgia.
    Staff members participated in or serviced such conferences and meetings as the Conference on Labor Law Administration of the Industrial Relations Research Association; the National Urban League Conference on Equal Opportunity; a regional conference on consumer affairs in Salt Lake City, Utah; State AFL-CIO conventions in Idaho, Montana, and Texas; and others.
    Analysis of Labor Legislation
    To meet the constant flow of requests from State and Federal officials, unions, employers, and others, the Bureau continued to analyze State labor laws and to develop materials on new and revised State labor standards in readily usable form. Although less than half of the State legislatures met in regular session in 1964 and many of these for budget purposes only, about 2,400 bills were introduced in the labor law field and over 300 of these were enacted into law. Michigan adopted a minimum wage law for the first time, while Massachusetts and South Dakota increased their minimum wage statutory rates. The child labor laws of Alaska, Maine, and Virginia were amended. Laws benefiting agricultural workers were passed in California, Michigan, New York, and Wisconsin, and major changes were made in workmen’s compensation laws of Kentucky, Massachusetts, and Virginia.
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    Workmen’s Compensation
    Considerable progress was made on a comprehensive study of administrative practices and procedures of workmen’s compensation agencies. The study deals with the administrative machinery and cost of administration, processing of contested and uncontested cases, disability rating methods, and administration of insurance provisions. In the field of radiation injuries under workmen’s compensation laws, the Bureau, in cooperation with the U.S. Atomic Energy Commission, has undertaken a series of studies covering problems of keeping radiation exposure records, State experiences in processing radiation cases, and methods of improving Federal-State cooperation in workmen’s compensation as a means of promoting adoption of more adequate workmen’s compensation standards. The Bureau continued its participation with the Subcommittee of the Council of State Governments on the preparation of suggested language for a workmen’s compensation and rehabilitation law.
    Specific technical assistance was given to the California Workmen’s Compensation Study Commission, Kentucky Legislative Research Commission, and Michigan Workmen’s Compensation Study Commission in analyzing the operations of workmen’s compensation laws and developing recommendations to strengthen these laws; to Delaware and North Dakota workmen’s compensation agencies on the regulation of attorney’s fees; to Georgia and Maine on the use of advisory committees by State workmen’s compensation administrators; to Rhode Island on promoting the use of rehabilitation facilities; and to Pennsylvania on suggested methods for conducting a seminar on workmen’s compensation and rehabilitation.
    The Bureau also emphasized rehabilitation aspects of workmen’s compensation laws and promoted statewide seminars in this area. Staff members participated in such seminars in New Jersey and Maryland and cooperated closely with the National Rehabilitation Association, National Institutes on Rehabilitation and Health Services, President’s Committee on Employment of the Handicapped, Association of Rehabilitation Centers, and other rehabilitation organizations in conferences designed to provide a better understanding of the relationship between workmen’s compensation and rehabilitation.
    Staff workmen’s compensation consultants continued to give technical assistance to the International Association of Industrial Accident Boards and Commissions and participated in the organization’s 1963 convention.
    Migratory Labor Conditions
    The Bureau continued to promote the formation of State migratory labor committees and to advise these groups on effective programs and plans of action; to develop and promote sound standards for improving working and living conditions of migrants; to participate in workshops and conferences studying problems of migrants; and to give guidance to community groups in organizing, planning, coordinating, and carrying
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    out programs for migrants and their families. There are now 27 State committees; a new State committee on migratory labor was established in Michigan this year as a result of services given to the office of the Governor. More than 500 additional services on migratory labor were provided in 38 States, including assistance in the organization of a community council in an area of large concentration of migrants in Florida and in the formation of a regional migratory committee for Wisconsin.
    YOUTH SERVICES AND STANDARDS
    The development of regulatory standards for young workers employed under the child labor provisions of the Fair Labor Standards Act is a continuing activity of the Bureau. In addition, the Bureau formulates advisory standards to improve the employment conditions of young workers, with due regard for their health, safety, education, and wellbeing; to contribute to greater mutual understanding between young people and their employers and fellow workers; and to minimize the frictions and repeated job failures that now characterize the work experiences of many youth, particularly the disadvantaged, and which frequently result in serious waste of training and education funds, and of opportunity for growth and self-development.
    Employment Hazards
    An investigation was completed that resulted in an amendment to Hazardous Occupations Order No. 10 to include the operation of meat patty forming machines, thereby setting an 18-year age minimum for such work under the Fair Labor Standards Act. An investigation of highway and street construction operations was begun to determine the feasibility of a hazardous occupations order in this area.
    Numerous interpretations were rendered on application of hazardous occupations orders for Wage and Hour and Public Contracts Divisions and for public and governmental agencies. The Bureau also reviewed and evaluated, on request, State laws from the standpoint of youth employment safety practices, and advised Federal and State agencies, as well as other bureaus within the Department, on suitable employment of minors rot presently covered by hazardous occupations orders.
    To assist the States to become more active in the issuance of State hazardous occupations prohibitions, a chart was published comparing State hazardous occupations prohibitions with applicable Federal orders.
    The Bureau participated in the Office of Education’s School Shop and Laboratory Ad Hoc Safety Committee meeting to determine how the Office of Education can more effectively promote school shop and laboratory safety, particularly in view of the great expansion in training anticipated under the Vocational Education Act of 1963 and the Manpower Development and Training Act. Staff assisted in developing steps and guidelines
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    for use by the Office of Education and for approval by the National Advisory Committee on Vocational Education.
    A youth institutional safety program was inaugurated, aimed at the approximately 250,000 youngsters in 2,000 youth institutions who are receiving practically no occupational safety training to prepare them for future employment.
    To obtain a better picture of how injuries occur to employed minors, an injury reporting system was established whereby States voluntarily report such injuries to the Bureau.
    Employment Certificates
    The Bureau renewed its cooperative agreements with 45 States, the District of Columbia, and Puerto Rico for the acceptance of State employment certificates as proof of age under the Fair Labor Standards Act. These jurisdictions issued 962,488 employment certificates for young workers 14 through 17 years of age employed under State or Federal child labor laws. Assistance was also given to State officials to improve certification services to employers and young workers.
    Job Adjustment
    A reorganization in March 1964 transferred youth manpower functions to the Bureau of Employment Security. LSB then placed renewed emphasis on improving supervisory standards and the relationship of young workers to employers, fellow workers, and their jobs. The public generally, and employers in particular, were alerted to the difficulties young people face in keeping jobs and overcoming the disadvantages which tend to keep them performing at only a fraction of their potential.
    A new kind of career day was instituted to deal with the developmental problems of disadvantaged youth. Taking special notice of the limited horizons, lack of training, and low motivation levels of disadvantaged youth, it aims to open up opportunities for job adjustment specifically for those boys and girls. Two such career days, held at nearby institutions for adjudicated delinquents, were regarded as being successful by the institutions’ staff.
    A cooperative relationship was worked out with the Bureau of Indian Affairs to facilitate the transmission of information on labor standards, working conditions, and work relationships to Indian youth through their teachers and counselors, as well as through the institution of career days.
    SAFETY FOR AMERICAN WORKERS
    Technological change, shifting patterns of occupational growth, and changing characteristics of the work force are broadening the dimensions and heightening the complexity of industrial accident prevention. The Bureau’s basic safety programs of training, code development, technical
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    service, and the administration of maritime safety legislation have all reflected changing safety needs.
    The Bureau organized and conducted the Ninth Biennial President’s Conference on Occupational Safety, held in June 1964. The President and Secretary of Labor appeared before some 3,000 delegates of American business, labor, agriculture, science, government, and safety organizations to “enlist the natural leadership in each worker, farmer, teacher or businessman,” to devise voluntary action to reduce the Nation’s continuing annual toll of 14,000 occupational deaths and 2 million disabling injuries estimated to cost $5 billion. Some 100 program speakers and panelists, representing a cross section of economic, scientific, and professional leadership, took part in 16 plenary and workshop sessions. The Conference’s Report to the President and to the Nation cites specific areas of rapid economic growth and technological change and successful techniques for controlling the hazards they present. The President designated the Conference week as Job Safety Week; 36 governors and 18 mayors by proclamation followed his lead in urging every American to work safely and to safeguard his fellow workers.
    Safety Standards and Codes
    The Bureau continues to participate in many standards-setting projects on a national and international basis. Last year safety technicians were members of 43 technical committees and 3 standards boards of the American Standards Association; they attended 31 meetings and cast 41 letter ballots on technical issues before these groups and reviewed 20 technical proposed standards and committee reports. As secretariat to the International Association of Governmental Labor Officials, the Bureau selected State officials to serve on ASA committees and boards to insure State representation in drafting safety standards. Last year, through the IAGLO, the States were represented on 52 sectional committees and 3 standards boards.
    The Bureau continued its participation in the Federal Radiation Council, which released six reports and action papers dealing with projections of future fallout from weapons testing programs and guidance for the control of 1-131 (Iodine-131). Concurrent programs dealing with uranium mining and consumer products were also pursued. Other standards-setting and promotional agencies with which the Bureau cooperated included the National Bureau of Standards, Federal Fire Council, National Safety Council, and National Fire Protection Association.
    The long-range project of comparing provisions of State safety codes with corresponding codes of the American Standards Association was continued. Its purpose is to point out gaps in State safety codes and to assist in modernizing existing codes and developing adequate code structures to safeguard workers. During the year, three additional comparisons were completed: fixed ladders, portable wood ladders, and excavation work. This brings to 20 the number of codes so analyzed.
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    Tn an effort to encourage the development of control programs by States and industries having significant noise hazards, Bureau technicians worked out “Suggested Language For a Noise Control Program,” emphasizing essential elements of a comprehensive program.
    Bureau engineers consulted with Delaware authorities on technical and administrative aspects of rulemaking. They assisted in adapting principles of the Federal Administrative Procedures Act to the State’s needs in the matter of public hearings, incorporating several portions of Federal safety and health regulations for maritime safety in State safety rules, and drafting a cooperative agreement between the Delaware Department of Labor and Industrial Relations and the State Board of Health concerning the discharge of their respective functions.
    Services to States
    Engineering and technical consultation services were provided by Bureau safety specialists in 159 instances to the various States and the District of Columbia; 68 were of a safety engineering nature, and 91 dealt with preparation for safety training programs.
    Over 5,000 persons from various States participated in 151 thirty-hour training courses in such safety subjects as organization and administration, mechanical and physical hazards, and chemical and environmental hazards. Advance courses in chemical products, radiation, low voltage electricity, and construction were also presented.
    Safety training presented
    Persons receiving State-sponsored training	Number of courses	Jurisdictions	Attendance
    State labor department inspectors..	44	Arkansas, Florida, Georgia, Hawaii,	1,068
    		Idaho, Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, North Carolina, Pennsylvania, Virginia.

    State and other public agency super-	82	Colorado, Florida, Hawaii, Illinois, Kan-	3,130
    visors. Industry supervisors: construe-	25	sas, New York, South Carolina. District of Columbia, Illinois, New York,	1,097
    tion, trades, and manufacturing.		North Carolina, South Carolina, Utah.
    	151		5,295

    Services to Unions
    Some 429 training and educational sessions were presented in 21 States and the District of Columbia during the year; 17,000 union members participated—more than double the number in the preceding year. Nineteen percent of the enrollees received training in nonmaritime safety, and the remainder participated in maritime training sessions provided under Public Law 85-742.
    Services to Federal Agencies
    The Bureau continued its activities to improve safety measures for Federal workers by providing engineering, training, and consultative services to
    749—199—65----10
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    Federal agencies. Safety personnel in the past year conducted 143 supervisory safety training courses in which 3,980 Federal employees participated. Twelve special safety training sessions were conducted, attended by 872 Federal employees. Some 190 engineering and programing contacts were made with officials of Federal installations throughout the United States. These services involved development of agency safety programs, review and evaluation of established programs, special surveys, and recommendations for improved working conditions in many areas. Nearly 50 percent of the recommendations made for program improvements were accepted and implemented by installation heads.
    The Bureau Director serves as Chairman of the Federal Safety Council and staff serve as secretariat. Established by Executive order, the Council now consists of 3 regional councils and 92 field councils. Last year, Bureau consultants made 90 contacts with individual field councils, attended 158 Federal Safety Council meetings and formally participated in 118 of these. The Council’s advisory board, coordinating committee, and operating divisions held over 100 meetings attended by Bureau staff.
    The Council sets criteria for the President’s safety award, issued annually to agencies with outstanding safety performance. Last June, in a White House ceremony, President Johnson presented awards for performance in 1963 to heads of the Departments of Navy, Labor, and the National Aeronautics and Space Administration. Honorable mention certificates were given to the heads of the Interstate Commerce Commission, Federal Aviation Agency, and the Department of the Air Force.
    Services to the Maritime Industry
    The Bureau continued to administer Public Law 85-742, amending section 41 of the Longshoremen’s and Harbor Workers’ Compensation Act, which provides for the promulgation and enforcement of safety regulations covering employments aboard ship in longshoring, ship repairing, shipbuild ingand shipbreaking on vessels afloat or in drydocks, building basins, or marine railways. Also, the Bureau provides training, consultative, and promotional services to employers in some 100 ports. The volume of maritime services performed by the Bureau during fiscal year 1964 is reflected in the accompanying table. Because of the much higher frequency rate in longshoring, heavier emphasis has been placed on these operations than on those in shipyard work.
    The Department has accredited some 25 agencies to test, inspect, and certificate cargo handling gear aboard ship. Such accreditation is required for certification of gear on U.S. vessels not inspected by the U.S. Coast Guard. These vessels are mainly heavy lift barges and those on the inland waterways, although the agencies do work on foreign vessels.
    Work is well underway on the American Standards Association project MH-9, “Longshoring Safety on Docks.” Original impetus for this project came from the Bureau, which is represented on virtually all of the working committees.
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    Maritime program activities for fiscal year 1964
    Longshoring Shipyard
    Services: Consultations..................
    Evaluation surveys__________
    Accident investigations_____
    Investigational hearings____
    Complaint investigations____
    Ships inspected..___________
    Recommendations made________
    Training:
    Number ofsessions-----------
    Number of attendants________
    Safety meetings:
    Number of meetings.........
    Number of attendants________
    Enforcement action:
    Violations cited____________
    Cease and desist orders issued.
    Injunctions and fines imposed.
    Enforcement action pending..
    7,222 273 355
    2
    177
    17,066
    3,375
    561
    16,929
    505 12,631
    1,326 1 0 0
    2,912
    137
    168
    8
    74 7,047 1,137
    339 7,870
    266 4,230
    1,642
    3
    2
    5
    Safety training courses have been conducted by Bureau safety specialists for supervisory personnel through companies and for employees through unions. Staff also provided safety training as part of an Area Redevelopment Act retraining program to provide qualified longshoremen needed in Duluth. In the shipyard branch, course outlines and other training materials were developed to assist in training the competent persons and other responsible personnel in the characteristic make-up of hazardous atmospheres, means of detection, and control measures.
    To measure progress, the Bureau uses the standard disabling injury frequency rate based upon the number of disabling work injuries per million man-hours worked. These rates are computed and compiled by the Department’s Bureau of Labor Statistics from man-hours and injury data submitted by individual employers. The injury rate in longshoring dropped from 108.2 in calendar year 1962 to 100.7 in 1963, while the shipyard injury rate fell from 34.9 to 28.7.
    Clearinghouse Services
    Last year the Bureau handled nearly 200 individual requests for technical information on specific job safety and health problems—-an increase of 38 percent over the previous year. Typical inquiries involve questions on the toxicity of various substances, manual weightlifting limits, machine guarding, organization of safety programs for hospitals and laboratories, noise abatement, and criteria for hearing conversation. Such requests are received from industry, unions, Federal, State, and local governmental agencies, students, and individuals. The Bureau continued to contribute abstracts for safety and health documents to the International Occupational Safety and Health Information Center for worldwide circulation, and to make available to State labor agencies and others the domestic version of the abstract service “Today’s Safety Guides.”
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    DISTRIBUTION OF SAFETY TRAINING SERVICES
    PERCENTAGE BREAKDOWN OF THE FORMAL TRAINING SERVICES PROVIDED BY THE OFFICE OF OCCUPATIONAL SAFETY FOR THE FISCAL YEAR OF 1964.
    *Non-moritim«
    INTERNATIONAL COOPERATION
    The Bureau provides technical literature and information for overseas use, sends technical consultants abroad to advise on labor standards matters, and trains foreign visitors. These activities are coordinated with the Department’s Bureau of International Labor Affairs. The agencies which request services include the Department of State, Agency for International Development, other U.S. Government agencies, International Labor Organization, United Nations secretariat, and foreign embassies and agencies.
    During the year, the Bureau published a handbook, “Role of a Labor Department in Developing Countries” (financed by AID), designed to meet a long-felt need of U.S. and foreign officials for a guide to determine ways in which labor department services, particularly those in less developed countries, can be made more effective. An inspection manual, prepared for use by the States, is being adapted for use by labor inspectors in developing countries. Preparation of this manual is also being financed by AID. Revision was begun on a series of industrial safety training manuals prepared several years ago for overseas use.
    Many of the topics considered at meetings of the ILO, International Social Security Association, and other international agencies are of concern to the Bureau. Over 45 such topics were referred to the Bureau and involved the preparation of position papers, responses to questionnaires, and the furnishing of technical information and materials. Other conferences for which background materials were prepared included the Second Inter-American Seminar on Labor Administration and the Special Committee on Labor Matters of the In ter-American Economic and Social Council.
    A major function of the Bureau is to supply technical information in response to inquiries from overseas in the fields of industrial safety and
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    U. S. DEPARTMENT OF LABOR
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    hygiene and public safety. More than 500 such requests were answered last year, a substantial increase since this service was inaugurated 3 years ago. They cover a broad range of topics, the majority involving hazards and safety measures necessary in the manufacture of industrial products. Similar services are provided in the area of labor law administration.
    Because of the Bureau’s increasing need for information on labor matters in other countries, comparative studies of labor laws and practices in various countries are now being made. These will serve as background for U.S. consultants to foreign countries, enable the Bureau to provide more complete information on labor standards, and constitute additional training materials for foreign visitors. As an initial project, work began on an “International Directory of Labor Agencies,” to include the agencies responsible for administering labor laws of each country and summaries of their respective functions.
    The Bureau assists in the assignment of technicians to advise other countries on improving their governmental labor programs. Seven Bureau staff members and two experts recruited by the Bureau were sent on one or more foreign assignments during the year. Five of these served as technical specialists or advisers at meetings of the ILO. Their subjects included industrial safety and hygiene, workmen’s compensation, and employment of young persons. A Bureau staff member was on the delegation to the Second Inter-American Seminar on Labor Administration. Two staff members participated in World Trade Fairs at Zagreb, Yugoslavia, and Warsaw, Poland. They were responsible for conducting seminars on industrial safety and hygiene and for manning a safety exhibit. At the request of AID, a staff member was sent to Pakistan to make a survey of labormanagement relations. The Bureau also assisted the Department of Commerce with the development of the Trade Center Exhibit on Industrial Safety and Hygiene in London.
    Foreign visitors continue to be referred to the Bureau for instruction in labor law administration and industrial safety and hygiene. They receive instruction from Bureau staff, and programs of study and observation are arranged for them including visits to State departments of labor, industrial establishments, trade unions, universities, and other public and private agencies concerned with labor. Visitors remain with the Bureau for periods ranging from a few hours to as long as a year. In 1964, the Bureau had total responsibility for programs and training of 40 visitors referred by AID, the ILO, and the State Department. In addition, it provided training assistance for 387 visitors referred by other bureaus of the Department and agencies of Government.
    INFORMING THE PUBLIC
    As a supplement to its major activities in the fields of training, enforcement, education, and promotion, the Bureau continued to publish technical and nontechnical bulletins, training aids, fact sheets, and a wide variety of
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    materials in the fields of labor law and administration and work accident prevention. In the year just past, close to one-half million bulletins were distributed. Eleven new publications were prepared and circulated, and six were revised. The Bureau also continued publication of its bimonthly magazine, Safety Standards. Examples of new publications released during the year are: “Annual Digest of State and Federal Labor Legislation (1961-1962)”; “The Use and Handling of Compressed Gases”; “A Guide to Community Efforts to Improve Conditions for Agricultural Migrants ; “Agricultural Workers and Workmen’s Compensation ; and a report on the hazards of excavation operations.
    BUREAU OF LABOR STATISTICS
    BUREAU OF LABOR STATISTICS
    As the major factfinding agency of the Federal Government in the field of labor economics, the Bureau of Labor Statistics continued to publish basic statistics relating to the labor force, employment, unemployment, wages, prices, industrial-relations, including work stoppages, productivity, and industrial hazards—statistics that are fundamentally important in many areas of public and private decision making. In addition, the Bureau undertook extensive analytical work in these fields, and provided many specialized research studies for the use of the Department of Labor and other Government agencies.
    Outstanding events of the year included the -completion of the 5-year Consumer Price Index revision program. The publication of the new index series began with the release of the January 1964 index. Publication also began of basic statistics from the surveys of consumer expenditures, income, and savings which were undertaken as part of the index revision program. A variety of steps were taken during the year to implement recommendations of the-report of the President’s Committee to Appraise Employment and Unemployment Statistics. These steps included experimental surveys aimed at improving concepts of unemployment and the labor force. A study of the -relationship between private pension plans and labor mobility was completed. A report on technological trends in 36 major industries was issued. Five staff papers on labor market policies abroad were prepared for the Subcommittee on Employment and Manpower of the Senate Committee on Labor and Public Welfare.
    Data collected by the Bureau are obtained from business enterprises, unions, workers, and government agencies on a voluntary basis. Most information is collected under a pledge of confidence, which is rigorously observed. The reputation of the Bureau is reflected in the high degree of cooperation it achieves in its data collection activities.
    The results of the Bureau’s work are issued in the form of regularly published reports, as well as in a series of bulletins on special subjects. Its major periodical, the Monthly Labor Review, is widely recognized as a basic publication in the field of labor economics.
    GENERAL FUNCTIONS
    Technical Assistance
    The Bureau continued to provide other Labor Department bureaus and governmental agencies with advice and assistance on program, statistical, and-data processing problems; to evaluate and comment on statistical and
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    technical matters raised by the Bureau of the Budget and other Federal agencies; and to prepare technical material for inclusion in international documents.
    Because of its wide acceptance for use in local area analyses, copies of the Bureau’s series of reports on “Income, Education, and Unemployment in Neighborhoods” were made available to many local organizations and to regional offices of the U.S. Civil Service Commission. The information was also used to prepare various charts and maps pinpointing pockets of poverty, a basic need of the antipoverty program. An analysis of its operating data was prepared for the President’s Committee on Equal Employment Opportunity.
    In anticipation of a comprehensive round of tariff negotiations (the “Kennedy Round”), the Bureau undertook to prepare, on a continuing basis, economic profiles of selected industries for use in the negotiating process. These profiles direct attention not only to industries that might be affected by increased import competition, but also to those that might be aided in exporting through reduction of trade barriers by other countries.
    The Bureau contributed heavily during the year to the development of extensive data on labor utilization, job security, and related questions in the longshore industry at ports in the East and on the gulf coast. This work resulted from agreements in early 1963 between the International Longshoremen’s Association and the appropriate employer associations that the Department of Labor undertake such studies to aid the parties in subsequent collective bargaining on the issues involved.
    During the year, several activities were directed toward the improvement of statistical techniques and greater operating efficiency. The Bureau developed an improved method to be used for seasonally adjusting economic time series—the first procedure effectively using variable weighting patterns in the determination of seasonal factors. This results in smoother seasonal factors. A computer program was prepared for applying the method on a small electronic computer.
    Field Operations
    The regional offices answered 424,000 inquiries for specialized information, an increase of 55,000 over fiscal year 1963. Numerous releases were issued containing data on specific regions, States, and cities. Of special interest were the reports on consumer expenditures for both specific cities and broad regions. Federal, State, and local agencies were aided in programs related to school dropouts, training, vocational guidance, and economic appraisal.
    With the Florida Industrial Commission, the Bureau cosponsored the 22d Interstate Conference on Labor Statistics. The conference was attended by Federal officials, State labor commissioners and statisticians, corresponding officials from the Canadian Dominion and Provincial governments, business and union representatives, and university professors. The agenda
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    included topics related to poverty and youth employment programs, job vacancy statistics, automation, disability of persons in the labor force, and wage, price, and productivity statistics.
    Publications
    Among significant bulletins and reports issued during the year were a directory of national and international unions; a revision of the “Brief History of the American Labor Movement”; and several reports on family incomes and expenditures in 1961. Also issued were reports on recent collective bargaining and technological change; work injuries and work injury rates in the highway and street construction industry; employment in the atomic energy field; employee earnings in retail trade; fringe benefit expenditures in the finance, insurance, and real estate industry; labor mobility and private pension plans; case studies of displaced workers; technological developments in major U.S. industries; salaries of professional, administrative, technical, and clerical employees in selected occupations; labor law and practice in a number of foreign countries; industry wage surveys in several industries; pension and health plans for salaried employees in selected companies; and labor and material requirements for several types of construction.
    The Monthly Labor Review, the Bureau’s basic periodical, carried a four-article series, “An Assessment of Apprenticeship,” which discussed the problems and policies involved in this important segment of the Nation’s manpower effort. Other articles of special interest included an analysis of changes in the revised Consumer Price Index; an estimate of the impact of defense spending on employment; a report on the stormy sessions of the 1963 International Labor Organization meetings in Geneva; and the biennial report on membership in American trade unions. Several new articles were added to the series of special reports on the labor force, including one on the status of Negroes and another on job mobility. Articles containing projections of future demand for engineers and scientists and for teachers were also published during the year.
    ADVISORY COUNCILS
    The Business Research Advisory Council consisted in 1964 of 41 members (appointed by the Commissioner of Labor Statistics after consultation with the National Association of Manufacturers and U.S. Chamber of Commerce), together with 6 ex-officio members (former chairmen of the council). The council met with the Bureau three times during the year. In addition to council members, 64 other individuals served on committees with substantive interest in the measurement of total construction employment, economic growth, foreign labor conditions, manpower and employment statistics, consumer and wholesale prices, productivity and technological developments, wages and industrial relations, and work injuries. The individual committees met two or three times during the year.
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    Also active during the year were committees of the Labor Research Advisory Council. All of the committees dealing with particular aspects of Bureau program met at least once, for a total of nine meetings. The membership of the council, nominated by the American Federation of Labor and Congress of Industrial Organizations and approved by the Commissioner, numbered 14 during the fiscal year. All research directors of international unions represented in the AFL-CIO and the Railway Labor Executives’ Association are invited to attend the general meetings of the council.
    MANPOWER AND EMPLOYMENT ANALYSIS
    Labor Force Statistics
    A major research program was initiated in the spring of 1964 to carry out a primary recommendation of the President’s Committee to Appraise Employment and Unemployment Statistics. Aimed at sharpening and improving the concepts and measures of unemployment and the labor force, the program involves a series of experimental surveys in cooperation with the Census Bureau, using a supplementary panel of households established for the purpose. This program will continue into fiscal 1965.
    In the regular analytical program, 11 reports on particular aspects of the labor force were issued during the year in the series of Special Labor Force Reports. These included employment of high school graduates and dropouts in 1962 and 1963; economic status of nonwhite workers; employment of school-age youth; job mobility of workers; job tenure of workers; work history, attitudes, and income of the unemployed; annual work experience of the population; multiple jobholders; family characteristics of workers; and an annual review of labor force and employment developments for 1963.
    The second in a series of detailed surveys of labor force attachment and the financial resources of the unemployed was completed during the year. Some of the unemployed workers interviewed by the Bureau of the Census for the Bureau of Labor Statistics had been included in a similar survey the year before. Thus, it is possible to take a second reading on the problems of identical workers with unemployment. A pilot research study of the factors affecting the entrance or withdrawal of women from the labor force was also undertaken during the year.
    Employment, Hours, and Earnings
    The current employment statistics and labor turnover programs are cooperative projects operated jointly by the Bureau and cooperating State agencies. Through arrangements with the States, the programs yield comparable national, State, and area statistics from a single survey. Employment, hours, and earnings series are now published for all 50 States and the District of Columbia. Employment series are available for 151 major areas, and hours and earnings series for 138 areas.
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    The cooperative labor turnover program showed further growth during its seventh year of existence. All 50 States and the District of Columbia now participate in this program. Labor turnover rates are currently being published for 47 States and 109 major areas.
    Publication of “Employment and Earnings Statistics for the United States, 1909-62,” BLS Bulletin 1312-1, was one of the most noteworthy developments during the year. The second in a series, this bulletin contains monthly data from the earliest dates of availability for all regularly published national series.
    A companion volume, “Employment and Earnings Statistics for States and Areas, 1939-63,” BLS Bulletin 1370-1, was completed during the year. It provides annual averages of employment, hours, and earnings in considerable industry detail for all 50 States and 151 major areas.
    A number of the recommendations for improving the collection and presentation of the industry statistics, made by the President’s Committee to Appraise Employment and Unemployment Statistics, were put into effect. These included changes in the content, arrangement, and timing of publication of data. Also, a new sampling plan for the industry employment statistics program was developed in considerable industry detail and will be implemented as resources permit. This plan provides for more adequate sampling of small establishments and should considerably strengthen the samples for the expanding trade and service sectors.
    Occupational Employment Statistics
    One of the key recommendations of the President’s Committee to Appraise Employment and Unemployment Statistics pointed to the need for systematic information regarding current changes in the number of workers employed in each important occupation, including the occupational structure of major industries. The Bureau completed during the year the initial research and planning necessary for the development of a program of current employment statistics by occupation. A list of occupations was developed based on criteria such as employment rate of growth, vulnerability to technological change, length of training required, importance to the national welfare, and industry concentration. In addition, occupational data from existing sources were assembled, and plans were made to expand existing surveys to collect data on a few occupations. Planning continues for a comprehensive program to collect data on the occupational composition of major industries.
    In recognition of the urgent need for information on scientific and technical personnel, the Bureau, in cooperation with the National Science Foundation, has over the past several years carried on annual surveys of the employment of engineering, scientific, and other technical personnel in private industry.
    The Bureau is continuing its pioneering work in projecting occupational employment by industry. This program, which developed from the needs
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    of the occupational outlook work, is being widely used as a tool by educators and others responsible for planning training programs and facilities. The occupational projections are being revised on the basis of the most recent statistical data available and on studies of the changing occupational structure of industries.
    Occupational Outlook Program
    The Bureau began work on the seventh edition of the “Occupational Outlook Handbook,” to be published in the autumn of 1965. The new edition will be extended in coverage, presenting employment outlook information for over 700 occupations. At the end of the fiscal year, sales of the 1963-64 edition were approaching 40,000. In addition, more than half a million copies of reprints from the Handbook had been sold.
    The Bureau completed work on a bibliography listing various Federal, State, and local government sources of career information for the use of counselors in student guidance.
    A chart book presenting information developed as part of the Bureau’s occupational outlook program was prepared for counselors and others concerned with the career choices of the Nation’s youth. The publication, “Choosing a Career in a Changing Economy,” will deal with some of the changes expected in the population, labor force, and structure of American industry, and the relationship of these changes to the employment outlook in specific occupational fields. Sets of 35-millimeter slides showing the charts in color will also be available for presenting the material to groups.
    As part of the research program on the changing industrial structure and occupational composition of the American economy, a variety of studies were undertaken in a number of fields of importance in the dynamic manpower situation in which the Nation finds itself.
    PRICES AND LIVING CONDITIONS
    The 5-year Consumer Price Index revision program was completed, and monthly publication of the new series began with the release of the January 1964 index. Selected findings were also published from the many faceted surveys of consumer expenditures, basic to the revision. In addition, information from the Bureau’s consumer expenditure surveys and standard budgets permitted significant contributions to be made toward the development of the program for the attack on poverty. Growing concern with maintaining price stability stimulated more intensive scrutiny of current price movements at the wholesale level.
    Consumer Price Index
    Since the Consumer Price Index was first established during World War I, it has undergone three major and several partial revisions. In the revision completed this year, many improvements were made in statistical
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    procedures. In addition, the selection of items and the assessment of thei importance were changed on the basis of findings from the intensive 1960-61 Survey of Consumer Expenditures. As a result, current buying patterns and population distribution are reflected more accurately. The revised Consumer Price Index also has been made more representative of the total wage and clerical worker population by broadening its scope to include single workers who live alone as well as family units. However, the Consumer Price Index basically continues to be what it has always been—a measure of price change, and of price change only, in items purchased by urban wage and salary workers. It continues to have wide use in collective bargaining and wage determination generally as a yardstick for measuring changes in real wages.
    The decision to include in the revised Consumer Price Index each metropolitan area with a I960 population of one million or more called for the addition of six areas omitted from the new sample as originally selected: Cincinnati, Houston, Kansas City, Minneapolis-St. Paul, Milwaukee, and San Diego. During the year, both the comprehensive housing surveys which provide the basic information from which to select sample families and the subsequent consumer expenditure surveys were completed in all six areas. The Bureau plans to publish individual new series indexes for each area in 1965, and to include all six in the national Consumer Price Index for January 1966.
    The Bureau was also called upon to prepare a number of city indexes of consumer prices and comparative living costs as well as to obtain price information for special needs. Housing and expenditure surveys were completed for Las Vegas as the basis for calculating a consumer price index for that city and comparing living costs with those in Los Angeles and San Francisco, as requested by the Atomic Energy Commission. At a conference held in February with the Governor of Guam, the Bureau agreed to assist in the development of a consumer price index for that Territory. Reports were prepared and special price data collected in the earthquake-damaged areas of Alaska. Among activities resulting from the revision of the Consumer Price Index were changes in the weighting and calculation procedures used in preparing the special BLS department store inventory index.
    Living Conditions
    Publication began of statistics from the findings of the 1960-61 surveys of consumer expenditures, income, and savings of urban families. These surveys, in addition to supplying basic data for the Consumer Price Index revision, provide information essential for current analyses of living conditions of the urban population. When this is combined with the results of similar surveys of rural areas covering the year 1961, conducted jointly with the Department of Agriculture, estimates of current expenditure patterns will be possible for the total U.S. population for the first time in over 20 years.
    749-199—^5—11
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    A summary report and supplement for the urban portion of the 1960-61 expenditure surveys was issued in May. Comparable reports for three of the four geographic regions were also published before the end of the fiscal year. These reports and supplements supply data on income, spending, and savings according to family income, family size, age of family head, occupation of family head, education of family head, race, number of full-time earners in the family, and other basic factors. A series of advance reports with data for individual cities was published during the year for all cities surveyed.
    Among the contributions made to the program for combating poverty were statistical and analytical material as well as proposals for basic research on levels and standard of living. With the need for refining the definition of poverty growing more urgent, special analyses of the findings from the 1960-61 consumer expenditure surveys were proposed as one of the means for developing an improved poverty “yardstick.” Such special analyses are planned for completion within the next fiscal year. Another essential part of the long-range attack on this problem is the proposed revision of the Bureau’s standard budgets—the City Worker’s Family Budget and the Retired Couple’s Budget—-scheduled for publication in the summer of 1967.
    Industrial Price Indexes
    The important program to develop industry wholesale price indexes based on the Standard Industrial Classification System advanced and, for those industries not now represented in the Wholesale Price Index, an item sample was selected. Because certain governmental agencies have urgent need for industry sector indexes, the Bureau began work on the preparation of interim industry indexes based upon the present Wholesale Price Index, which is organized by commodity grouping.
    The international price comparison program undertaken jointly with the National Bureau of Economic Research was concluded by the end of the fiscal year when comparative domestic and foreign price data on heavy industrial equipment collected for government agencies was submitted to the National Bureau. For the special project to develop a deflator for research and development costs for Army laboratories and private laboratories under Army contract, a report with 1962 indexes was submitted to the National Science Foundation, the sponsoring agency.
    WAGES, SALARIES, AND RELATED BENEFITS
    Annual surveys were completed in 80 standard metropolitan statistical areas and one smaller area. The studies provide information on earnings in selected office and plant occupations, and on such matters as minimum entrance salaries, shift differentials, scheduled weekly hours, paid holidays and vacations, paid sick leave, and health, insurance, and pension plans. Revised data processing procedures instituted in the latter half of the year
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    will permit earlier publication of the area reports than was previously possible, eliminating the need for a preliminary release for each study. A number of refinements suggested by users of the data will be incorporated in the reports. The results of each annual round of labor area wage and salary surveys are summarized in two-part bulletins. Part I brings together data for each of the labor areas surveyed. Part II projects the individual labor area data to national and regional estimates of the levels and trends of occupational earnings and provides summaries of establishment practices and supplementary wage provisions for all metropolitan areas combined, four broad regions, and for six major industry divisions. Special analyses of such topics as interarea pay comparison, occupational wage relationships, and wage payment plans are included in the second part of the bulletin.
    The fifth annual survey of salaries in selected professional, administrative, technical, and clerical occupations in private industry, nationally, was completed. The study is designed for use by the executive agencies and the Congress in appraising the Federal salary structure, as required by the Federal Salary Reform Act of 1962. Separate studies of salaries in Hawaii, Puerto Rico, and Alaska were completed and published in a combined report. These surveys were conducted at the request of the Bureau of the Budget and the Civil Service Commission in connection with their Federal salary responsibilities. A detailed study of practices in private enterprise in the design and use of salary structures relating to white-collar occupations was completed. This study, which was also undertaken at the request of the Budget Bureau and the Civil Service Commission, provides information on the general characteristics of salary structures, the design of salary schedules, general revisions in salary schedules, hiring rate provisions, and provisions for advancement within grades.
    A number of surveys of wages by occupation were undertaken during the year on an industry basis. These studies develop data on average hourly earnings of workers in production jobs characteiistic of the industry, in addition to ‘ ‘ indirect’ ’ occupations, and provide a distribution of workers by earnings classes. Information is provided on such matters as the incidence of incentive pay, scheduled weekly hours, paid holidays, paid vacations, etc. The studies are generally nationwide in scope and provide separate tabulations for selected regions and areas. Reports were completed and issued in fiscal 1964 fot six manufacturing and seven nonmanufacturing industries, including a study in the meat products industry, the first in several years.
    The annual studies of union wage scales and scheduled hours of work for specified crafts or occupations, including information on employer contributions to welfare and pension plans, were completed in building construction, printing, local trucking, and local transit. To improve the area coverage of the surveys, which relate to cities of 100,000 population or more, the number of cities covered*by studies in construction, local transit, and local trucking was increased from 53 to 61 and, in printing,
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    from 54 to 62 cities. Reports were issued for the special quarterly surveys of union rates and employer contributions to welfare and pension funds for 7 major building trades in 100 cities.
    Studies of the distribution of earnings and hours of work of nonsuper-visory workers were undertaken for manufacturing and wholesale trade and in selected southern nonmetropolitan areas. The studies are designed primarily for the administrative use of the Department’s Wage and Hour and Public Contracts Divisions in appraising the effects of the $1.25 minimum wage that became effective on September 3, 1963, and in evaluating the 40-hour standard under the act. In manufacturing and wholesale trade, the distribution of earnings and hours of work will, wherever possible, be presented nationally, for four geographic regions, metropolitan and nonmetropolitan areas, by sex, and for selected industry groups. In the study in 15 southern nonmetropolitan areas, earnings and hours data will be developed for both manufacturing and nonmanufacturing industries and provide comparisons with similar data collected in 1961 and 1962. A study of hours only was undertaken in retail establishments subject to the provisions of the Fair Labor Standards Act. That study was designed to measure the effects of the 44-hours standard which also became effective on September 3, 1963-
    Other surveys for administrative purposes were undertaken in five industries to provide information on employee earnings for use by the Secretary in prevailing rate determinations under the Walsh-Healey Public Contracts Act. Studies were also made of the effects of previous determinations in two industries.
    The final report was issued during the year on a study of employer expenditures for fringe benefits for production workers in the meatpacking and processing industry. The preliminary results of a similar study in finance, insurance, and real estate also became available. Other studies covering manufacturing industry and nonproduction workers in urban areas were underway. The latter study, requested by the Budget Bureau and the Civil Service Commission to permit a comparison of compensation practices in the Federal Government and private industry, complements the annual study of salaries of professional, administrative, technical, and clerical workers.
    Monthly reports were issued during the year, listing all negotiated changes in wages and related benefits affecting 1,000 workers or more in manufacturing and selected nonmanufacturing industries. Quarterly and annual statistical summaries of the settlements in manufacturing were prepared, including information on other nonunion and smaller unionized situations.
    A special report was prepared summarizing recent collective bargaining approaches to problems of income and job security resulting from technological change.
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    Chronologies summarizing changes in wage rates and related benefits since the inception of collective bargaining in 40 key situations were maintained on a current basis.
    INDUSTRIAL AND LABOR RELATIONS
    In a comprehensive series of studies covering all aspects of collective bargaining agreements, analyses were underway with reference to grievance and arbitration procedures, wage determination and administration procedures, and technological change, employment, and job security. A mail questionnaire study was undertaken at the request of the Office of Manpower, Automation, and Training to probe beyond the Bureau’s planned study of severance pay provisions in major collective bargaining agreements. Information will be developed on the various operating problems of the plans, with case studies of five plans or situations in action. The annual calendar of agreement expirations and reopenings was published at the beginning of the year.
    For the first time with specific reference to salaried employees, descriptions of the principal features of 50 selected health and insurance plans and 50 selected pension plans were issued. Articles summarizing the features of the plans were prepared for the Monthly Labor Review. Work was begun on revision of earlier digests and analyses of health and insurance and pension plans under collective bargaining. The principal features of unfunded private pension plans, the so-called “pay as you go’’ plans, were described in a report sponsored by the Social Security Administration. The study relates to the spring of 1963. A study of the relationship between private pension plans and labor mobility was undertaken at the request of the Office of Manpower, Automation, and Training. The report, which covers some 16,000 plans involving 15.8 million active wage and salary workers, considers the implications of vesting and early retirement provisions and portable pension credits for voluntary job changing. Work was underway on analyses of guaranteed wage or employment plans and on supplementary unemployment benefit plans.
    The monthly reports on work stoppages were prepared and the annual report summarizing stoppages in 1962 was published. Other reports became available during the year on work stoppages involving teachers, work stoppages by State in the period 1927-62, and an updated edition of the report on national emergency disputes under the Taft-Hartley Act, 1947-62.
    The biennial “Directory of National and International Labor Unions in the United States (1963)” was published and will be kept current through the periodic issuance of change sheets to indicate necessary adjustments in the listings.
    A program of statistical and analytical services for the President’s Committee on Equal Employment Opportunity was established to meet demands for employment data for racial minority groups in the Federal
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    Government, on Federal Government contracts for goods and services, and in the Plans for Progress program.
    PRODUCTIVITY AND TECHNOLOGICAL CHANGE
    Productivity Measurement
    Indexes of output per man-hour for the private economy and the major sectors, agriculture and nonagriculture, were extended through 1963 to provide a series covering the 1909-63 period. Productivity indexes for selected industries covered 21 mining, manufacturing, and transportation industries, extended to the most recent period for which data were available. The weighting structure used for obtaining production measures for these industry indexes was updated during the fiscal year to reflect, in general, the relative importance of the industry’s products in 1958. Previously, the index weights for most industries were based on the relative importance of each industry’s products in 1947.
    A report on output per man-hour in the gas and electric utilities industry, 1932-62, was published, and a draft report for the primary aluminum industry, covering the years 1947-62, was prepared and reviewed by government, industry, and labor officials. Reports for additional industries were nearing completion. The indexes for these and other new industries will be extended on an annual basis. The report for each new industry provides output per man-hour measures for all employees and production workers, as well as the underlying statistics, a description of the industry, a brief examination of the trends, and a technical note on procedures and sources.
    The Bureau also extended the annual indexes of comparative labor and nonlabor costs, prices, and output per man-hour for the total private economy in the nonagricultural sector.
    Labor Requirement Studies
    The Bureau completed three additional studies in its series of surveys of the labor-generating effects of various types of construction. The studies provide information on both labor and material requirements on the construction site, as well as the labor required in all the supporting activities needed to produce and transport construction material. The three new studies covered the construction of projects in the civil works program of the Corps of Engineers, public housing construction, and one-family house construction. Previous studies dealt with school, highway, hospital, and Federal office building construction. Studies underway include college housing and sewage projects.
    Tn continuation of work which has been done for several years in conjunction with the President’s staff and the Budget Bureau, the Bureau prepared estimates related to the labor-generating potential of Federal public works projects.
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    Automation and Technological Change
    A report on “Technological Trends in 36 Major American Industries’’ was published for the President’s Advisory Committee on Labor-Management Policy. The study describes impending technological changes and their manpower implications in 36 key industries covering more than half of nonfarm employment. Information on changing technology was reviewed prior to publication by more than 150 experts in industry, labor, and government.
    Bulletin No. 1319-1, a supplement to Bulletin No. 1319, “Implications of Automation and Other Technological Developments: A Selected Annotated Bibliography,” was published. It covered 307 items, including books, articles, reports, speeches, conference proceedings, and visual aids.
    The Bureau had in process of publication, at the end of the fiscal year, Bulletin No. 1408, “Case Studies of Displaced Workers.” The study focuses on groups of workers laid off from five plants which had reduced employment substantially as the direct or indirect result of technological change. It highlights their experience and problems in obtaining alternative employment. Data for over 3,000 workers were obtained by mail questionnaire in making the study.
    A study of the implications and outlook of numerically controlled machine tools was nearing completion. It reports on one of the most important impending technological innovations in the metalworking industry. The report covers the extent of current usage, prospects for adoption, and implications for productivity, employment, training and retraining, and occupational skills.
    A mail survey of the impact of computers in the insurance industry was completed. The survey covered over 400 companies (about nine-tenths of total insurance carrier employees) and was designed to measure the extent of computer use, electronic data processing applications, and occupational and employment impact. The report is in preparation.
    A number of papers for presentation and use at various International Labor Organization conferences on automation and technological change were also prepared.
    For the President’s Council on Aging, the Bureau completed a special study of the comparative work performance of older workers. This study of mail sorters in post offices was the third in a series comparing older workers’ productivity with that of younger workers doing similar work.
    Work is in process on technological outlook studies covering the status, prospects, and manpower implications of important innovations in the foundry, electric power, textile, and transportation industries.
    INDUSTRIAL HAZARDS
    Several years’ work culminated in the release of work injury statistics based on the 1957 edition of the Standard Industrial Classification Manual. Annual data, last published for 1958, were released for 1958-60 on the new
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    basis. Quarterly and monthly data for manufacturing industries for 1963 and the first 3 months of 1964 also were released. In each case, a 1-year overlap of the old and new series was provided.
    The Bureau provided the chairman of a committee to revise the American Standard Method of Recording and Measuring Work Injury Experience. Substantial work on the revision of the standard was completed during the year. Under the guidance of the same chairman, the American Standard Method of Recording Basic Facts Relating to the Nature and Occurrence of Work Injuries was also revised. These two standards provide the basis of comparability among individual establishment records and association, State, and national statistics of work injuries. Bureau staff members took part in planning committee sessions for the President’s Conference on Occupational Safety, assisted in staff work and distribution of materials, and provided all necessary services for two of the workshops of the conference.
    Chairmanship and service was provided for the Task Force Subcommittee on Accident Reporting and Records of the President’s Interdepartmental Highway Safety Board. The subcommittee prepared specifications for long- and short-run projects for consideration by the Cabinet-level Board.
    Analytical charts demonstrating the effect of work injury special studies on the injury frequency rates of the industries studied were prepared. Discussions of these were presented within the Bureau, at the Bureau of the Budget, and before the Committee on Work-Injury Statistics of the Business Research Advisory Council.
    Continuing its service to the American safety movement, the Bureau provided a wide range of statistical material designed to promote interest in occupational safety and to guide accident prevention efforts into the most effective channels. Among the most significant reports issued in this area were:
    1.	Estimates of the total volume of disabling work injuries and of the economic losses resulting from those injuries during 1963.
    2.	Reports for 1958-60 of work injury rates for a large number of manufacturing and nonmanufacturing industries. Reports for 1961 and 1962 were in preparation. These data provide the basic national indication of the magnitude of the work injury problem and the standard of comparison for other rates.
    3.	A quarterly report of monthly injury frequency rates in a large number of manufacturing industries on the revised basis described above, and three quarterly reports on the previous basis. Also, a report for the 12 months of 1963 to provide an overlap comparison of data on the two bases. These data provide current measures of injury rate trends and of the success of safety efforts.
    4.	Four quarterly reports presenting monthly injury occurrence rates in great geographical detail for activities subject to the safety and health requirements of the Longshoremen’s and Harbor Workers’ Act. These data are used directly in the planning and operation of the Federal program
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    of promoting and enforcing safety in these activities. Special tabulations also were prepared during the year to further this work.
    5.	Detailed major reports on causes of work injuries in two industries, logging and sawmills, and of frequency of injuries among employees of highway and street contractors were issued during the year. A survey of occurrence of injuries to employees of hospitals was conducted and plans for a study of causes of these injuries were completed.
    6.	Major studies of the occurrence of injuries, causes of accidents, or both, were in preparation for seamen, and for employees in concrete brick and block manufacture, school lunchrooms, hotels, highway departments, and heavy construction.
    ECONOMIC GROWTH STUDIES
    A primary objective of the economic growth project is to develop long-range projections of the economy to provide the framework for evaluating a number of economic problems, including problems of manpower utilization. Because of the interest of many Government agencies in the problems of economic growth, the program is under the guidance of an Interagency Steering Committee, chaired by the representative from the Council of Economic Advisers.
    The Bureau has the responsibility for establishing the central research staff which coordinates the results of the various research projects underway in other Government agencies, universities, and private research organizations. In addition, the Bureau’s staff does research in selected areas not covered by other agencies.
    During 1964, preliminary results of such research in major areas have been completed and work continued in other key areas.
    In the consumer expenditure area, the Harvard Economic Research Project has completed a report summarizing its work. The report contains equations for projecting consumer expenditures and projections to 1970 for approximately 80 separate categories. The projections and methodology are being evaluated by the Bureau.
    Detailed projections of State and local government revenues were developed by the Advisory Commission on Intergovernmental Relations and work was started on detailed projections of expenditures.
    A report summarizing projections of Federal Government expenditures on an agency-by-agency basis was received from the National Planning Association. Work was begun by the growth project staff on developing projections of defense expenditures in more detail.
    Various parts of the project being conducted at the Office of Business Economics, Department of Commerce, continued during the year; several are nearing completion and reports on these will be received early in fiscal year 1965- These include projections of residential construction, balance of payments, and projections of capital-output ratios. The new input
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    output table for 1958 is almost completed and should be available in fiscal year 1965-
    In the analysis of input coefficients, preliminary reports were received from the Department of Agriculture and Bureau of Mines on projections of input coefficients for the farm and mineral sectors. A private research firm is working on projection of input coefficients for selected types of construction. The Harvard Research Project and the BLS growth project staff have done extensive work on the projection of coefficients in other sectors of the economy.
    A capital flow matrix for 1958 was begun by the staff of the Division of Economic Growth. This will permit analysis of the flow of equipment from producing to consuming sectors.
    Work has started within the Bureau on developing projections of output per man-hour, on an industry-by-industry basis.
    Work has continued on the development of an aggregate model, with estimates of the expenditure and income sides of the gross national product. The aggregate model will provide the starting point for the more detailed interindustry projections. This is a cooperative project of a subcommittee of the Interagency Growth Committee.
    INTERNATIONAL AFFAIRS
    In response to increasing demands, the Bureau published or completed this year a record number of summaries of the labor situation in foreign countries. The totals were: 58 four-page digests of labor conditions (36 published on countries of Asia and 22 completed on countries of Latin America); 20 monographs on labor law and practice in various countries (7 published, 13 completed); 7 monographs on manpower in various countries (completed); and 4 monographs on the general labor situation in various countries (published).
    In addition, the Bureau published a number of articles on topics relating to labor abroad, such as policies for averting unemployment in West Germany, Italy, Japan, and the European Coal and Steel Community; Israel’s training program for modernizing countries; and the settlement of the general strike in British Guiana. Five staff papers prepared in the Bureau were included in the volume on “Lessons from Foreign Labor Market Policies,” published by the Subcommittee on Employment and Manpower of the Senate Committee on Labor and Public Welfare.
    The work of comparing labor costs and welfare in the United States and abroad was continued. The Bureau published an article on unit labor costs in eight countries since 1950, provided information on per capita income in the United States and foreign countries which was used by the President in a television address to the Nation, conducted research in the compilation and use of job vacancy statistics in Europe, prepared descriptions of the statistical series published regularly in the Latin American countries, commenced preparing regular reports on wholesale and consumer
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    price trends in the leading industrial countries, and continued research and negotiations bearing upon an exchange of wage data between the United States and Japan pursuant to a Cabinet-level agreement of the two governments.
    The Bureau of the Budget gave formal approval for the issuance of Labor Developments Abroad as a monthly Department of Labor periodical.
    The Bureau of Labor Statistics provided a training specialist to serve as a full-time technical consultant in Puerto Rico to the Puerto Rican Labor and Price Statistics Training Program for Spanish-speaking economists and labor statisticians from Latin America. In its initial year, the program provided training for 13 participants from 10 countries. In Washington, the Bureau conducted its regular 1-year course in labor and price statistics for participants from developing countries in various parts of the world. The seventh edition was published of the handbook entitled “Economic Forces in the United States,” which is used in the orientation of foreign visitors to the United States.
    The program of preparing manuals for use in developing countries on the compilation of labor and price statistics was reactivated after discussions with the Agency for International Development. AID has published two such manuals prepared in the Bureau, on the computation of cost-of-living indexes and on conducting a labor force survey.
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    WAGE AND HOUR AND PUDLIC CONTRACTS DIVISIONS
    Contents
    Page
    Enforcement by investigation...................................... 176
    Underpayments................................................. 177
    Complaint activity............................................ 177
    Back-wage payments............................................ 178
    Legal actions................................................. 181
    Child labor violations........................................ 181
    Safety and health inspections................................. 182
    Compliance through education...................................... 182
    Interpretations and regulations................................... 184
    Equal pay..................................................... 184
    “Regular rate’’............................................... 184
    Exemptions.................................................... 185
    Safety and health regulations................................. 185
    Special minimum wage provisions................................... 186
    Special minimum wage certificates............................. 186
    Puerto Rico, Virgin Islands, and American Samoa............... 187
    Public Contracts Act wage determinations...................... 188
    Economic studies.................................................. 189
    Hotels, restaurants, and laundries............................ 189
    Small logging operations...................................... 189
    Hired farm labor.............................................. 190
    Determinations under PCA...................................... 190
    Double time for overtime...................................... 190
    Private hospitals............................................. 190
    Proposed legislation.............................................. 191
    Charts
    1.	Amount of minimum wage and overtime underpayments disclosed, fiscal years 1955-64...................................... 178
    2.	Number of underpaid employees disclosed, fiscal years 1955-64...	179
    3.	Number of establishments against which complaints were received, fiscal years 1955-64...................................... 180
    Appendix I
    Tables
    A.	Investigation findings under the Fair Labor Standards and Public Contracts Acts, by fiscal year, 1955-64........................... 193
    B.	Investigation findings under the Fair Labor Standards and Public Contracts Acts, by region, fiscal year 1964....................... 194
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    Page
    C.	Number of minors found employed in nonagricultural establishments in violation of the child labor provisions of the Fair Labor Standards Act, by region, State, and age of minor, fiscal year 1964......................................................... 195
    D.	Number of minors found employed in violation of hazardous occupations orders issued under the Fair Labor Standards Act, fiscal year 1964.................................................. 196
    E.	Number of minors found employed on farms in violation of the child labor provisions of the Fair Labor Standards Act, by region, State, and age of minor, fiscal year 1964................  197
    F.	Findings in safety and health inspections made under the Public Contracts Act, by region and State, fiscal year 1964.............. 198
    G.	Number of learner certificates in effect on June 30, 1964, classified by industry, type of regulation, and type of certificate........	200
    H.	Minimum hourly wage rates in effect in Puerto Rico as of June
    30, 1961, June 30, 1963, and June 30, 1964.................. 201
    I.	Minimum hourly wage rates in effect in the Virgin Islands as of
    June 30, 1964..............................................  204
    J.	Minimum hourly wage rates in American Samoa, effective September 9, 1963.................................................... 2^5
    K.	Summary of minimum wage determinations applicable under
    the Walsh-Healey Public Contracts Act, June 30, 1964........ 205
    L.	Number and value of unclassified contracts subject to the Public Contracts Act, by fiscal year, 1937-64............................ 207
    M.	Number of minors found employed on farms in violation of the child labor provisions of the Fair Labor Standards Act, by age and present or last school grade attended, fiscal year 1964.	207
    N.	Number of nonlocal minors found employed on farms in violation of the child labor provisions of the Fair Labor Standards Act, by age and present or last school grade attended, fiscal year 1964......................................................... 2^8
    Appendix II
    Child labor standards............................................. 2°9
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    REGIONAL AND FIELD OFFICES
    749-199—65—12
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    WAGE AND HOUR AND PUDLIC CONTRACTS DIVISIONS
    During fiscal year 1964, the accomplishments of the Wage and Hour and Public Contracts Divisions in enforcement of the Fair Labor Standards Act and the Walsh-Healey Public Contracts Act surpassed the record highs attained in the previous year. This year also saw higher standards go into effect under the FLSA, and the addition of a new basic standard toward the year’s end—equal pay for equal work, regardless of sex.
    In accordance with the Fair Labor Standards Amendments of 1961, the minimum wage for employment which had been covered by the FLSA prior to the amendments rose from $1.15 to $1.25 an hour, effective September 3, 1963- This meant a direct pay increase for about 2.6 million of the almost 24 million workers covered prior to the amendments on the basis of their individual engagement in or production of goods for interstate commerce. Also on September 3, 1963, premium pay for overtime became applicable for the first time to employment which had been made subject to the act by the 1961 amendments—chiefly employment in certain large enterprises in retailing activities and the construction industry. Two million two hundred thousand of the 3.6 million employees brought under the FLSA by the 1961 amendments were employed in large retail or service enterprises. They became due not less than one and one-half times their regular rate of pay after 44 hours in a workweek, their minimum wage remaining at $1 an hour. The maximum hours standard for workers covered on traditional grounds was not affected; time and one-half continued to be required after 40 hours in a week.
    Investigations disclosed almost $60 million in back wages owed more than 364,000 employees. The amount was 22 percent greater than the back wages found due in the previous year to 312,000 employees. The number of investigations completed this fiscal year increased by about 4 percent, totaling more than 56,000. As a result of the Divisions’ activities, employers agreed to pay more than $22.7 million in back wages to over 189,000 workers—12 percent more than was agreed to last year. About 21,000 young people were found employed in violation of the child labor provisions, a 25 percent increase over the preceding year.
    Most of the back wages found to be owed resulted from failure to comply with the FLSA. The Public Contracts Act is of less extensive effect, applying to Government supply contracts in excess of $10,000. Employees working on a covered contract are almost always covered by the FLSA as well; and in such cases both laws apply. Where they differ, the higher
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    standards prevail. Investigations are made for compliance with either or both laws.
    The PCA’s minimum wage provisions authorize the Secretary of Labor to issue industry minimum wage determinations, on the basis of the minimum wages he finds prevailing. Not less than time and one-half the employee’s basic rate must be paid for all hours worked in excess of 8 in a day or 40 in a week, whichever is the greater number of overtime hours. The act also has child labor provisions and prohibits convict labor. In addition, it stipulates that Government work be performed under safe and sanitary conditions.
    Amending the FLSA, the Equal Pay Act of 1963 became generally effective on June 11, 1964, and applies to employees who are subject to a minimum wage under the FLSA. The new provisions prohibit wage discrimination between men and women for equal work on jobs requiring equal skill, effort, and responsibility and which are performed under similar working conditions. There are three specific exceptions and one broad general exception to the equal pay standard. Where it can be established that a differential in pay is the result of a seniority system, a merit system, a system measuring earnings by quantity or quality of production, or any other factor other than sex, the differential is expressly excluded from the statutory prohibition of wage discrimination based on sex.
    The Secretary of Labor recommended legislation during the year to broaden the coverage of the FLSA and to increase employment through modification of provisions dealing with overtime compensation. The proposed extension of coverage would apply minimum wage and overtime pay requirements to employees in certain large hotels, motels, restaurants, and laundries, among others. The other proposal would establish procedures by which employment could be increased through the curtailment of excessive overtime work where this can be done without unduly increasing costs.
    ENFORCEMENT BY INVESTIGATION
    During fiscal year 1964, the Divisions completed 56,370 investigations under either the FLSA, the PCA, or both laws. There were 2,039 more investigations than in the previous year. The investigations disclosed underpayments of $59.7 million involving 364,199 employees and the illegal employment of 21,006 minors. There were also 3,851 industrial establishments inspected for compliance with the safety and health provisions of the PCA.
    The enforcement results were due in part to a greater number of complaints. Information was received during the fiscal year alleging that 23,120 establishments were not complying with one or more of the basic provisions of the acts. This was an increase of 4,188 over the preceding year. Any increase in underpayments may be attributed partly to the
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    changes in minimum wage and maximum hours standards that became effective during the first quarter of the fiscal year.
    Also contributing to the higher attainments this year were the greater efficiency and productivity of the Divisions’ investigation staff, linked with careful planning of the investigation program so as to use available manpower resources in industries and establishments where violations are most likely to exist.
    Since the effective date of the Equal Pay Act, June 11, 1964, was so close to the end of the fiscal year, it was not possible to determine what enforcement of the equal pay provisions will disclose. Wages withheld in violation of the equal pay requirements have the status of unpaid wages under the minimum wage or overtime pay provisions of the FLSA.
    Underpayments
    Underpayments disclosed in fiscal year 1964 reached an alltime high of $59.7 million, an increase of $10.6 million over the preceding year. Minimum wage underpayments and overtime underpayments each accounted for $5-3 million of the increase. Of the total underpayments, $35.5 million was due under the overtime pay provisions and $24.2 million under the minimum wage provisions. (See chart 1 and appendix tables A and B.)
    Investigations disclosed 364,199 underpaid employees, with 203,513 receiving less than the applicable minimum wage and 237,180 less than full overtime compensation. (See chart 2.) In fiscal year 1963, investigations disclosed underpayments of $49.1 million to 312,428 employees. The increases in the amount of underpayments and in the number of employees involved were proportionately greater than the increases in either the number of investigations made or the time spent on investigations. This increased productivity may be largely attributed to the continued emphasis on scheduling investigations of establishments where violations are most likely to exist.
    Complaint Activity
    The Divisions received complaints alleging that 23,120 specific establishments were not complying with the acts. This was an increase of 4,188, or about 22 percent, over the previous year and continued an upward trend. (See chart 3-)
    Approximately 52 percent of the total available investigative time was spent in making complaint investigations.1 Of the $59.7 million in unpaid minimum wages and overtime compensation revealed due, about 63 percent, $37.7 million, was disclosed in complaint investigations. Investigation time not spent on complaints was used largely in investi-
    1A complaint case is one which involves an allegation from a source outside the Divisions indicating that one or more of the specific requirements of the FLSA or the PCA is not being observed with respect to employment in a particular firm. Some complaint cases contain complaints from more than one source and may involve many employees.
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    Chart 1, Amount of minimum wage and overtime underpayments disclosed, fiscal years 1955 — 64
    Millions
    Minimum wage underpayments
    Unpaid overtime compensation
    gations of types of establishments in which, even though a specific complaint had not been received, there were other reasons to believe serious violations were occurring.
    Back-Wage Payments
    Employers agreed to pay 189,048 employees $22.7 million in illegally withheld wages found due in investigations. As a direct result of investigations, more employees received a greater amount of back wages during fiscal year 1964 than in any previous year. Not included in this total is a substantial amount of back wages paid to employees of multiunit enterprises in situations where selected investigations disclosed violative
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    Chart 2. Number of underpaid employees disclosed, fiscal years 1955-64
    pay practices and the firms involved agreed to make computations and back-wage payments to affected employees in all branches without further investigations.
    In addition to the voluntary payment of back wages under the supervision of the Administrator, the FLSA provides other remedies for recovering underpayments. Under section 16(b), employees may sue the employer for the amount of back wages due under the act, plus an equal amount as liquidated damages which may be awarded at the discretion of the court. The court may also allow the cost of the action and reasonable attorney’s fees. Section 16(c) authorizes the Secretary of Labor to sue the employer for unpaid back wages on the written request of the employee, provided no unsettled issue of law is involved. As provided in section 17, the Secretary of Labor may request a court injunction to restrain an em-
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    Thousands
    Chart 3. Number of establishments against which complaints were received, fiscal years 1955-64
    ployer from violating the act and from withholding back wages found by the court to be due employees. An employee may not bring an independent action under section 16(b) if the Secretary of Labor has sued for his back wages under section 16(c), or if the Secretary of Labor has filed an action under section 17 to restrain the withholding of back wages.
    In those cases in which agreement for the voluntary payment of back wages is not obtained from the employer, the policy of the WHPC Divi
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    sions, which has met with court approval, is to notify employees, as far as practicable, of their rights under sections 16(b) and 16(c) of the FLSA. WHPC does not encourage or discourage employees to exercise these rights; the matter is left entirely to the discretion of the employees.
    Employers owing money as a result of violations of the PCA are liable to the Federal Government for the amounts of the underpayments. The money is distributed to the employees involved.
    Legal Actions
    A total of 1,608 civil and criminal actions under the FLSA and the PCA were filed in fiscal year 1964. Of the 1,559 civil actions filed, 1,456 were commenced under section 17 or 16(c) of the FLSA or section 2 of the PCA, and 103 represented other civil actions. Of the actions commenced under section 17 of the FLSA, 369 contained a prayer for payment of back wages under amended section 17. Criminal actions were instituted in 49 cases.
    Proceedings under these acts were completed in 1,557 cases during the fiscal year. A total of 1,507 injunctions were obtained—1,312 by contest and 195 by consent—and 7 other civil actions were closed. Of the 1,312 civil contested cases closed, 236 included the back-wage provision of section 17, while 284 were employee suits under section 16(c). Criminal actions under the FLSA were completed in 43 cases, with convictions in all but 2. In addition, PCA administrative proceedings were instituted in 34 cases, and 35 such cases were completed during the year.
    Restitution of almost $3,099,205 was made to employees for wage underpayments, consisting of $2,912,415 paid as back wages under the FLSA and $186,790 paid as liquidated damages under the PCA. Fines were imposed in criminal cases in the amount of $73,638, and in contempt proceedings in the amount of $29,940.
    Child Labor Violations
    Investigations during fiscal year 1964 disclosed more illegally employed minors than in any prior year—a. total of 21,006. This figure, which includes minors found employed contrary to the child labor provisions of the FLSA and the PCA, is more than 25 percent higher than in fiscal year 1963. The increase in disclosure of such violations, both in agriculture and nonagricultural employment, may be attributed to the fact that more investigations were made during this year and also to continued emphasis on scheduling investigations of those farms and establishments where underage minors are likely to be employed.
    Sixteen years is the minimum age for most employment covered by the FLSA. This includes employment in agriculture during school hours. Eighteen is the minimum age for employment in an occupation declared to be hazardous by the Secretary of Labor. Minors who are 14 and 15 years old may be employed outside school hours in certain occupations, such as office and sales jobs, for a limited number of hours and under specific conditions.
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    Of the 13,0341 minors found illegally employed in nonagriculture, 7,388, or 57 percent, were under 16 years of age, and 5,623, or 43 percent, were 16 and 17 years of age employed in hazardous occupations. (See appendix tables C and D.) Of the 7,9721 2 minors under 16 found illegally employed on farms during school hours, 5,672, or 71 percent, were under 14 years of age, and 2,254, or 29 percent, were 14 and 15 years of age. (See appendix table E.)
    The PCA prohibits the employment of boys under 16 and girls under 18 years of age on contracts let by the Federal Government for materials, supplies, articles, or equipment in amounts exceeding $10,000. Thirty-five minors were found employed contrary to this act.
    Safety and Health Inspections
    There were 3,851 safety and health inspections in industrial establishments performing on Government contracts subject to the PCA. Also, 2,497 followups were made to insure that unsafe conditions disclosed by a first inspection had been corrected. The Divisions’ personnel made 2,243 of the 3,851 inspections, and 1,608 were made by State inspectors pursuant to cooperative agreements with certain States. Agreements were terminated during the year with Colorado, Kansas, Arkansas, Hawaii, Virginia, and North Carolina. Because of the small number of safety and health investigations required in these States, it was felt to be more efficient and effective administratively to have these made by the Divisions’ personnel. There are six remaining agreements—with the States of California, New York, New Jersey, Connecticut, Massachusetts, and Rhode Island. In these States are located approximately half the contractors who perform Government work under the Public Contracts Act. The Federal Bureau of Mines, with which the Divisions also have an agreement, made 146 safety and health inspections in coal mines subject to the act. Serious safety and health violations were disclosed in 1,969 of the 2,243 establishments inspected by the Divisions’ personnel. The Federal Bureau of Mines reported that unsafe conditions were found in 55 mines. (See appendix table F.)
    Safety and health violations were involved in 21 administrative hearings. Three of these concerned coal mines. As a result of the hearings, six contractors, including one coal-mine operator, became ineligible to perform on Government contracts for a period of 3 years.
    COMPLIANCE THROUGH EDUCATION
    The advance in the minimum wage, the lowering of the maximum hours standard, and the new equal pay requirements necessitated continuation of broad and comprehensive educational programs to assist employees and
    1 Included in this total are 35 minors employed contrary to the child labor provisions of the PCA; of this total, 23 were employed in violation of the PCA only and 12 were employed in violation of the FLSA also.
    2 Includes 46 minors for whom no age was reported.
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    employers in becoming acquainted with their rights and responsibilities under the revised FLSA.
    Popular-language publications, interpretative bulletins, regulations, and posters concerned with both acts were revised to reflect the new standards. WHPC, in addition to disseminating publications through regional and field offices, obtained cooperation from trade associations, labor unions, professional and other societies that undertook to supply their members with these materials. The assistance of representatives of minority groups was actively sought, and they responded effectively, providing information about the law to their members.
    WHPC representatives across the Nation emphasized the new requirements at speaking engagements before industry associations, labor organizations, and other groups, and while making investigations. They also replied by mail, by telephone, and during office interviews, to thousands of inquiries on the part of business firms, workers, and the general public.
    Special programs were undertaken to promote awareness of the new FLSA provisions. To insure that individual firms would have advance notice of the changes effective in September 1963, a brochure including a revised official poster was mailed toward the end of fiscal year 1963 to 1,100,000 employers. Through the cooperation of the Post Office Department, 40,000 post offices throughout the 50 States were provided poster-flyers for display on their bulletin boards to alert the public to major provisions of the act. The daily, labor, and trade press carried numerous stories on various aspects of the law to their massive audience. Radio and television scripts, “spot” announcements, and “platters” were aired by hundreds of stations.
    An educational seminar which was jointly sponsored by the National Committee for Equal Pay and the Department of Labor brought together in Washington on June 11, 1964, the effective date of the equal pay provisions, representatives from women’s organizations, and labor, management, educational, civic, and professional associations.
    WHPC continued its educational efforts involving child labor. Cooperative educational programs were developed with Federal, State, and local agencies for the purpose of bringing about a better understanding of the law among parents and prospective farm and urban employers of young people. As in previous years, local radio stations and daily and weekly newspapers provided facilities for this undertaking as a public service.
    Toward the end of the fiscal year, preparations were well underway to engage in educational programs that would focus public attention on revisions in the statutory standards, effective September 3, 1964. The changes would consist of a minimum wage increase from $1 to $1.15 an hour and a reduction in the maximum workweek standard from 44 to 42 hours, for employees made subject to the FLSA by the 1961 amendments. Similar to the mailing in connection with the September 1963 revisions, a brochure and revised poster pointing out the changes, including the equal pay amendment, had been sent by mid-May to covered establishments.
    183
    INTERPRETATIONS AND REGULATIONS
    Guidance to employers and employees as to their responsibilities and rights under the acts through the issuance of interpretations and regulations continued at an active pace. Changes in the FLSA, questions raised in particular investigation cases or by the public, and changes in business practice or technology point out the need for new or modified rulings.
    Equal Pay
    The Equal Pay Act, enacted as an amendment to the FLSA, became generally effective on June 11, 1964. It provides that employers having employees subject to a minimum wage under the act may not discriminate on the basis of sex within an establishment by paying such employees at rates lower than those paid employees of the opposite sex for doing equal work on jobs requiring equal skill, effort, and responsibility, and which are performed under similar working conditions.
    A public hearing was held during October 1963 to obtain advice from interested persons as to questions which should be answered in an interpretative bulletin. In April 1964, interpretative bulletin, title 29, part 800 of the Code of Federal Regulations, was published in the Federal Register. This bulletin contains the interpretations and statements of general policy that will be relied upon by the Department in the administration of the equal pay provisions.
    "Regular Rate”
    Certain payments made to or on behalf of employees may, under section 7(d) of the FLSA, be excluded from the “regular rate” on which overtime pay is computed. Although prior approval of such payments is not required by the statute, it is frequently requested by employers. This takes the form of assurance that the employer’s contributions to an employee benefit plan may be excluded from the regular rate. The recent trend in collective bargaining to emphasize fringe benefits is continuing, and new types of benefits have been added and dollar amounts increased. Requests for approval of supplemental unemployment benefit plans, or amendments to such plans providing benefits payable for longer periods, or other increased benefits, continued to lead in volume of requests. A marked increase was evident in requests regarding vacation benefit plans, including plans which provide employees certain payments at the time of taking vacations or payments in lieu of vacations. Inquiries on profit-sharing plans also increased significantly.
    On August 1, 1963, a position on the application of section 7(h) of the FLSA was published in the Federal Register as an amendment to interpretative bulletin, part 779, on retailers. This section provides an exemption from the overtime pay provisions for any employee of a retail or service establishment whose regular rate of pay is more than one and one-half times the applicable minimum hourly rate, and more than one-half
    184
    of whose compensation, for a representative period, represents commissions on goods or services.
    Exemptions
    Seasonal industry determinations issued under section 7(b)(3) of the FLSA are being reviewed to see whether current operational conditions still warrant application of the exemption. This section provides a partial overtime pay exemption for employees employed in an industry found by the Administrator to be seasonal in nature.
    Public hearings were held in March, April, and October of 1962 to consider what changes, if any, should be made in regulations, part 541.
    4	Those regulations define the terms “executive,” “administrative,” and
    “professional” employees and “outside salesmen,” for purposes of the so-called “white collar” exemption provided in section 13(a)(1) of the FLSA. As a result of these hearings, the minimum salary tests for exemption of executive, administrative, and professional employees were adjusted upward and special salary tests were established for employees of a retail or service establishment. No other change was made in these regulations. The special (lower) salary tests for employees of a retail or service establishment are effective for the period September 30, 1963, through September 2, 1965. Beginning September 3, 1965, the established salary tests ($100 a week for executive and administrative employees, $115 for professional employees, and $150 for certain high-salaried workers in all categories) will apply with respect to all within the scope of this exemption.
    A public hearing was held during June 1964 on the status of driver salesmen as outside salesmen under the section 13(a)(1) exemption. This problem results from the 1961 amendments as they relate to local driver salesmen who were not previously within the act’s coverage. At year’s end the record was not yet completed.
    Proposed regulations on the overtime exemption in section 13(b)(ll) for drivers and drivers’ helpers making local deliveries who are paid on the basis of trip rates were published in June. The period for receiving comments extended to August 1964.
    Safety and Health Regulations
    A public hearing was held in March 1964 concerning the proposed revisions of regulations, part 50-204, safety and health standards for Federal supply contracts. The hearing record and comments on the proposed revisions were being reviewed at the fiscal year’s end.
    Radiation safety and health standards were issued in February, and a public hearing was held in April 1964 on the question of the application of the radiation standards in States which had entered into agreements with the Atomic Energy Commission concerning the regulation of certain radiation sources. The record of this hearing was also under review at
    185
    the year’s close, with the intent o£ making appropriate revisions in the standards in the coming year should this be deemed advisable.
    The radiation regulations provide that compliance with the applicable regulations of the Atomic Energy Commission will be deemed to be compliance with the Public Contracts Act radiation requirements. This avoids duplication of regulations for firms engaged in performance on Federal supply contracts. Also, in order to avoid duplication in the inspection of such firms for compliance with the radiation requirements, agreements have been reached with the Atomic Energy Commission. One agreement provides that Atomic Energy Commission licensees who are performing on Federal supply contracts will not be subject to dual inspection of licensed materials and that the Atomic Energy Commission will notify WHPC of any excessive exposure. Also WHPC will report any apparent violation of the Atomic Energy Commission standards in the course of inspection under the general safety and health standards to the Atomic Energy Commission. The second agreement provides that Atomic Energy Commission Government-owned, privately-operated plants will be inspected for all phases of the Public Contracts Act safety and health regulations by Atomic Energy Commission safety personnel to avoid dual inspection and the Atomic Energy Commission will report to the Divisions as appropriate.
    SPECIAL MINIMUM WAGE PROVISIONS
    Under section 14 of the FLSA, certificates may be issued authorizing the payment of less than the otherwise applicable statutory or wage order rate. Such certificates may be issued for learners, apprentices, messengers, full-time students in retail or service establishments, or handicapped workers. The primary qualification is the extent to which, in the absence of certification, curtailment of employment opportunity would result.
    Minimum wage rates for industries in Puerto Rico, the Virgin Islands, and American Samoa are the subject of biennial minimum wage review by tripartite industry committees.
    The PCA authorizes the Secretary of Labor to determine the prevailing minimum in industries performing on covered contracts.
    Special Minimum Wage Certificates
    Learners
    In addition to a regulation which applies to learners generally, supplemental industry regulations establish the terms and conditions governing the issuance of certificates for employment at special minimum wages in the apparel, cigar, glove, hosiery, and knitted wear industries. Special minimum wage rates for learners in these industries were increased 10 cents an hour effective October 31, 1963, in view of the increase of the minimum wage from $1.15 to $1.25 an hour on September 3, 1963.
    186
    As o£ the end of the fiscal year, 1,659 certificates were in effect authorizing the employment of an estimated maximum of 37,544 learners in 1,528 establishments. (See appendix table G.)
    Student-Learners, Student-Workers, and Full-Time Students
    A total of 3,302 certificates, each authorizing the employment of an individual student-learner at special minimum wages, were in effect at some time during the fiscal year. These certificates provide for the part-time employment training of students, typically high school students in their senior year, supplemented by and integrated with school instruction directly related to the job.
    Also in effect at the end of the fiscal year were 26 student-worker certificates, issued to educational institutions permitting the part-time employment of 1,336 needy students at special minimum wages in school-operated shops in order to enable the students to defray part of their school expenses.
    In fiscal 1963, the regulation governing the employment of full-time students in retail or service establishments had been reviewed and it was decided to reappraise the regulation further in 1964. Data were accumulated in connection with certificate renewals in the spring of 1964. Consultations were held with industry and labor representatives on the form used to gather data for appraisal of the regulation, on a revised application form, and on what, if any, substantive changes in the regulation appeared to be required.
    A total of 2,179 full-time student certificates were in effect at the end of the fiscal year.
    Handicapped Workers
    The temporary special certification standards originally adopted in 1961 for fresh shellfish plants were terminated in May 1964. During the initial 3 months under the regular certification standards, the number of certificates issued for workers in these plants declined by approximately two-thirds from the comparable period under the special standards.
    At the end of the year, handicapped worker certificates authorized the employment at special minimum rates of 3,227 workers.
    The rapid growth in sheltered workshop certifications continued. A total of 674 workshops, employing approximately 37,500 handicapped persons, held certificates at the close of fiscal year 1964.
    Puerto Rico, Virgin Islands, and American Samoa
    The 1961 amendments to the FLSA provided for an automatic increase of 25 percent, to be achieved in two steps, over the wage rates in effect prior to the amendments for each industry in Puerto Rico and the Virgin Islands. The second-step increase, amounting to 10 percent of the preamendment wage rates, became effective for most of the industries or classi
    187
    fications of industries on November 3, 1963, although in some industries a later effective date was applicable.
    The amendments also provided, as in the case of the first-step or 15-percent statutory increase, that employers in Puerto Rico or the Virgin Islands could apply for appointment of a review committee to recommend minimum wage rates to be paid in lieu of the rates which would otherwise result from the second-step increase.
    Under these provisions eight industries, all in Puerto Rico, filed applications for review and each was afforded an industry committee hearing in Puerto Rico. The committees, equally composed of employer, employee and public members, recommended minimum wage rates to be paid in lieu of the rates provided by the second-step increase.
    Wage orders were issued to put into effect the automatic increases and the review committee recommendations for all industries in Puerto Rico. Appendix table H shows these rates. This table also shows the rates as of June 30, 1963, and as of June 30, 1961; the latter date was prior to any change in a wage order resulting from the 1961 amendments.
    Minimum piece rates applicable to homeworkers in Puerto Rico were increased commensurate with the increases in the hourly rates.
    Industry committees were convened in the Virgin Islands and American Samoa as required by the act’s provision that minimum wages in these islands be reviewed biennially. The committees considered all industries on the islands with minimum rates lower than the statutory minimums and subsequently wage orders were issued putting their recommendations into effect. (See appendix tables I and J.)
    Public Contracts Act Wage Determinations
    With the objective of preventing the payment of substandard minimum wages from conferring an unfair advantage in competition for Government contracts, the PCA directs the Secretary of Labor to determine the prevailing minimum wages for “persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality” in which the commodities called for in the Government contract are to be manufactured or furnished. Payment of at least the determined prevailing minimum wages is required of Government contractors subject to the act. A list of currently effective determinations is presented in appendix table K.
    Four minimum wage determinations became effective during the fiscal year, two applicable to industries for which no determinations had been specifically issued previously. The initial determination for the conveyors and conveying equipment industry provided for a $1.70 minimum hourly wage rate, effective August 14, 1963. The initial determination for the engines and turbines industry set minimum rates of $1.71 an hour for steam engines and turbines and $1.69 an hour for internal combustion engines, effective October 30, 1963. Redetermination proceedings for the
    188
    battery industry resulted in the establishment on December 11, 1963, of minimum wage rates of $1.80 an hour for lead-acid storage batteries, and $1.41 an hour for all other batteries. A determination was also issued, effective March 20, 1964, finding $1.25 an hour to be the prevailing minimum in all industries with minimum rates below that amount. This corresponded to the $1.25-an-hour minimum applicable under the FLSA to employees engaged in or producing goods for interstate commerce.
    During the year determination proceedings were initiated for four industries with the convening of labor-management panel conferences. The conferences are a vehicle for exploring definitional and other problems and for developing plans for collecting industry wage information.
    Federal procurement subject to the PCA, reported to the Divisions by procurement agencies, was valued at $22.2 billion during fiscal year 1964. This total does not include classified contracts. (See appendix table L.)
    ECONOMIC STUDIES
    Section 4(d) of the FLSA directs the Secretary of Labor to submit annually to the Congress a report containing an evaluation of the minimum wages established by the act and recommendations for further legislation in connection with the act. In 1964, attention was directed to studies of low-wage segments of the labor force in which Federal minimum wage or maximum hours standards are nonexistent or minimal. Separate reports containing findings in these studies were submitted, and certain other studies were begun or completed.
    Hotels, Restaurants, and Laundries
    The 1961 amendments directed the Secretary of Labor to report to the Congress on wages and pay practices in the hotel and restaurant industries. In addition, during the congressional hearings, the Secretary of Labor agreed to provide similar data for the laundry industry. Studies of these three industries were made in June 1961 and reports were presented to the Congress early in 1962. In June 1963, the Divisions initiated further studies of these three industries. The reports were completed and submitted to the Congress in January 1964. The information contained in these reports, which updated the 1962 reports and covered the entire Nation, rather than the large metropolitan areas only, served as the economic basis for recommendations made by the Secretary of Labor to the Congress for extension of FLSA coverage to these industries.
    Small Logging Operations
    A study of logging contractors having 12 or fewer employees in 7 States— Alabama, Arkansas, North Carolina, Mississippi, Michigan, Minnesota, and Wisconsin—was initiated in the spring of 1963. Special surveys were
    749—199—65----13
    189
    conducted to provide an economic basis for evaluating the continued need for the 13(aX15) exemption from the minimum wage and overtime pay provisions of the FLSA for small logging operations, and for appraising various approaches which might be taken to eliminate or modify the exemption. The survey data were analyzed and incorporated in a report submitted to the Congress in January 1964. In the light of these data, the Secretary of Labor recommended to the Congress that the exemption be eliminated.
    Hired Farm Labor
    In June 1963, at the request of the Divisions, the Department of Agriculture expanded its enumerative survey of farms, conducted annually in connection with its crop allotment programs, to obtain wage data for hired farmworkers on large farms. These data were incorporated in a report submitted to the Congress in January 1964 for use in evaluating legislative proposals to establish minimum wage standards for hired farmworkers on large farms.
    Determinations Under PCA
    In fiscal year 1963, the Divisions commenced a series of studies of wage and bidding practices in industries for which determinations of prevailing minimum wages have been issued under the PCA, and of the extent to which changes in wage structures and bidding practices are related to prevailing minimum wage determinations. In fiscal year 1964, surveys of two such industries were conducted—-office, computing, and accounting machines and manifold business forms. Reports on these two industries will be submitted to the Congress in fiscal year 1965-
    Double Time for Overtime
    Studies of the prevalence of long workweeks in all segments of the economy and of the economic effects of higher premium payments for hours over 40 in a week were conducted during fiscal year 1964 and served as an economic basis for the administration bill requiring the payment of double time instead of time and one-half for hours over 40 in a week in industries now subject to the 40-hour workweek standard of the FLSA. Much of this material is contained in the Secretary of Labor’s prepared testimony given in February and July of 1964 before the Select Subcommittee on Labor of the House Education and Labor Committee.
    Private Hospitals
    At the request of the General Subcommittee on Labor of the House Education and Labor Committee, the Divisions undertook a study of the anticipated effects of a minimum wage applied to employees of private hospitals, currently exempt under section 13(a)(2Xiii) of the FLSA. Special tabulations of data obtained by the Bureau of Labor Statistics in
    190
    mid-1963 surveys are being made to serve as a basis for estimates of coverage effects. The study is expected to be completed in fiscal year 1965.
    PROPOSED LEGISLATION
    On February 7, 1964, the Secretary of Labor appeared before the General Subcommittee on Labor of the House Committee on Education and Labor and presented the administration’s views on amendments to the FLSA. He recommended that minimum wage and overtime pay protection be provided for workers in large hotels, motels, restaurants, and laundries, and to others working for small logging contractors, and that overtime protection be extended to certain employees of motor carriers, air carriers, oil pipelines and employees of gasoline service stations. He also recommended amendments to simplify the complicated system of exemptions now available for the handling and processing of agricultural products and to remove inequities in the application of such exemptions.
    The Secretary noted that the President had included the extension of the benefits of the FLSA as part of his war on poverty in America. He stated that the Department’s studies showed that the economy had made a smooth adjustment to the increase in the minimum wage and the extension of coverage in the 1961 amendments. In many cases there were increases in employment. He said that the Department’s studies also indicated that the enactment of the administration’s proposals would not reduce employment, but would add purchasing power to many thousands of low-paid workers and would strengthen the economy.
    H.R. 9824 and S. 2487 were introduced to amend the FLSA. These bills provided that the minimum wage and overtime standards to be applied to the newly covered employees would be at the same levels and scheduled in the same manner as was provided for employees, primarily in retail trade, brought under the act by the 1961 amendments. There would be a three-step minimum wage rate—an initial rate of $1 an hour for the 3-year period beginning on the effective -date after enactment, $1.15 an hour during the fourth year, and $1.25 an hour thereafter. Similarly, overtime protection would be provided for a workweek in excess of 44 hours during the third year from the effective date, for a workweek in excess of 42 hours during the fourth year, and for a workweek in excess of 40 hours thereafter.
    Hearings and executive sessions were held on H.R. 9824 by the General Subcommittee on Labor. Subsequently, H.R. 11838—a revised bill in lieu of H.R. 9824—was referred to the full Committee on Education and Labor. However, action on the bill was deferred by the full committee and the bill remained in the committee at the time the Congress adjourned.
    On February 17, 1964, the Secretary of Labor appeared before the General and Select Subcommittees on Labor of the House Committee on Education and Labor to present the administration’s views on a proposal to reduce unemployment and to strengthen the economy by a better distribution of
    191
    work presently performed on an overtime basis. H.R. 9802 and S. 2486 authorized an overtime penalty rate of’double time, on an industry-by-industry basis, for employees covered by the FLSA prior to the 1961 amendments. This higher rate would take effect only where persistent and substantial overtime was being worked in the industry and double time for overtime hours could create more jobs without unduly raising costs; and an industry committee had’recommended the maximum hours standard (not less than 40 hours a week) to which double time should apply. The Secretary pointed out in his testimony that in 1963 an average of more than 35 million hours of overtime were worked per week in manufacturing alone, although over 4 million men and women were unemployed. He said that the evidence at hand was persuasive that a significant increase in employment could be obtained by distributing to other employees work which was presently performed on an overtime basis, and that this could be done without impairment of operating efficiency.
    Extensive hearings were held by the Select Subcommittee on Labor on H.R. 9802 culminated by the reappearance of the Secretary of Labor with additional testimony in its support. No further action had been taken on the legislation by the subcommittee by the close of the fiscal year.
    192
    193
    749-199—65----14
    eld wages that reed to pay1	Number of employees involved	189,048	-3SSSS38SSS00'
    Illegally withh employers ag	Amount	$22, 733,910	U'wcfci'rtwcfcfcicf
    ts disclosed	Overtime compensation	$35,499,852
    c? a 1 §	Minimum wages	$24,209,632	iWgWSggf
    Amount of	Total	$59,709,484	hVcoomioVoWW
    d underpaid	Not paid full overtime compensation	237,180
    mployees foun	Paid at less than the minimum wage rate 		203, 513
    Number of e	Total number underpaid 3	364,199
    3	Number of employees subject to minimum wage2	1,710,850	§§gggSS8§g»8 sgasgsssaass-
    	Number of establishments	56,370
    Region		All regions.			»-	f •H	H 3S	c >	>	j	3^		Santurce, P. R
    194
    Appendix table C.—Number of minors found employed in nonagricultural establishments in violation of the child labor provisions of the Fair Labor Standards Act, by region, State, and age of minor, fiscal year 1964
    	Number of minors illegally employed
    Region and State			16-17 years
    	Total	Under 16	of age in
    		years of age	hazardous occupations
    All regions		 ..	113, 011	7,388	5,623

    I. Boston						522	139	383

    Connecticut		61	7	54 60
    Maine		88	28 58
    Massachusetts		 		226 47		168
    New Hampshire			24
    Rhode Island	 			69 31	14
    Vermont	 			8	23

    II. New York City				1,119	425	694

    New Jersey 	 _ .	558 561	121 304	437 257
    New York	 	 _ __

    III. Chambersburg			1,039	627	412

    Delaware _ __	.. __ __ 	_	5	1	4 14
    District of Columbia	 _ 			24	10
    Maryland- __ 	 _		222 1 788	85	137 257
    Pennsylvania			1 531

    IV. Birmingham			890	453	437

    Alabama		 _ 		270 228 203	160 105 100 88	110 123 103 101
    Arkansas— . -		 _
    Louisiana				 _
    Mississippi				 			189

    V. Cleveland	 ___ 			1,078	728	350

    Michigan	 		 		619	481 247	138 212
    Ohio		 		459

    VI. Chicago	 	 _	600	356	244

    Illinois	- - 		- _	1328 55	1229 19	99
    Indiana
    Minnesota		 		124	71	53
    Wisconsin _ __ 				1 93	>37

    VII. Kansas City	 	 		1,012	689	323

    Colorado			272 56 225 248 128 10	251 24 113 197 59	21
    Iowa	-						32
    Kansas	 	 				112
    Missouri
    Nebraska	 -					69
    North Dakota.__ 	 				3	7 14
    South Dakota---		 ...	......	43	29
    Wyoming	 		 __	130	113	17

    VIII. Dallas		3,088	2,105	983

    New Mexico	 		109	78	31
    Oklahoma	- - 			401	241 1,786	160 792
    Texas		2,578

    IX. San Francisco		 - 	 _ _	1,491	850	641

    Alaska		—		 		8	3	5
    Arizona.						43 1 942	29	14
    California	— 						1545 10	397 20
    Hawaii			30
    Idaho		 	 _ _ --_ ...	4	4	o
    Montana		— 			 			1 20	1 4	16
    Nevada			 			36	20	16
    Oregon		53	40	13
    Utah		260	148 44	112 48 0
    Washington.. 		92
    Guam.—		3	3

    See footnote at end of table.
    195
    Appendix table C.—Number of minors found employed in nonagricultural establishments in violation of the child labor provisions of the Fair Labor Standards Act, by region, State, and age of minor, fiscal year 1964—Continued
    	Number of minors illegally employed
    Region and State	Total	Under 16 years of age	16-17 years of age in hazardous occupations
    X. Nashville		1,142	412	730

    Kentucky _	__ 		 _ _	_		 		293	111	182
    Tennessee __		 _	____			413	188	225
    Virginia	- -	-- 		 		312	90	222
    West Virginia			- -	 - 		124	23	101

    XI. Atlanta				 —	— - 		1,023	600	423

    Florida.. _ 	 . . . . . -	- 		321	185	136
    Georgia . 			- - 				1 363	1194	169
    North Carolina.					147	82	65
    South Carolina 					 	 		192	139	53

    Santurce, P.R. 				 .	-		 		7	4	3

    Puerto Rico __		 ____ 			6	4	2
    Virgin Islands		 __ .		-		1	0	1

    1 Includes minors illegally employed under the provisions of both the Fair Labor Standards Act and the Public Contracts Act as follows: All regions, 12: Pennsylvania, 2; Illinois, 1; Wisconsin, 1; Wyoming, 1; California, 2; Montana, 1; Georgia, 4.
    Appendix table D.—Number of minors found employed in violation of hazardous occupations orders issued under the Fair Labor Standards Act, fiscal year 1964
    Hazardous occupations order violated
    Total employed in violation of one or more hazardous occupations orders 1__________
    Manufacturing or storage occupations involving explosives (order No. 1)_______________
    Motor-vehicle driver and helper (order No. 2)------------------.----------------------
    Coal mine occupations (order No. 3)___________________________________________________
    Logging and sawmilling occupations (order No. 4)______________________________________
    Power-driven woodworking machines occupations (order No. 5)___________________________
    Occupations involving exposure to radioactive substances and to ionizing radiations (order
    No. 6)______________________________________________________________________________
    Power-driven hoisting apparatus occupations (order No. 7)_____________________________
    Power-driven metal-forming, punching, and shearing machines occupations (order No. 8)_
    Occupations in mining, other than coal (order No. 9)__________________________________
    Occupations involving slaughtering, meatpacking or processing, or rendering (order No. 10)-.
    Power-driven bakery machines occupations (order No. 11)_______________________________
    Power-driven paper-products machines (order No. 12)___________________________________
    Occupations in the manufacture of brick, tile, and kindred products (order No. 13)____
    Occupations involving the operation of circular saws, bandsaws and guillotine shears (order
    No. 14)_____________________________________________________________________________
    Occupations in wrecking, demolition, and shipbreaking operations (order No. 15)_______
    Occupations in roofing operations (order No. 16)______________________________________
    Occupations in excavation operations (order No. 17)___________________________________
    Number of minors involved
    6,839
    26
    4,804
    50
    350
    340
    8.
    1,081
    201
    26
    206
    49
    202
    10
    229
    98
    86
    15
    1 Represents an unduplicated count of the number of minors employed in violation of 1 or more hazardous occupations orders.
    196
    Appendix table E.—dumber of minors found employed on farms in violation of the child labor provisions of the Fair Labor Standards Act, by region, State, and age of minor, fiscal year 1964
    Region and State	Number of minors illegally employed
    	Total	14-15 years of age	10-13 years of age	9 years of age and under
    All regions	 		i 7,972	2,254	4,094	1,578

    I. Boston		 _ _ 						151	43	77	30

    Maine_		 	___ _		150	43	77	30
    Massachusetts,- -	- 	 ____	11	0	0	0

    II. New York City	 —				0	0	0	0

    III. Chambersburg	 - 		28	7	15	6

    Maryland	 		12	2	7	3
    Pennsylvania. 				 _ .	16	5	8	3

    IV. Birmingham	 	 		1, 528	416	814	275

    Alabama				 	_ .	1 437	92	253	69
    Arkansas,.		_ ______	510	170	247	93
    Louisiana 	 _ 			241	73	127	41
    Mississippi..					 			340	81	187	72

    V. Cleveland							349	142	165	42

    Michigan		 				79	23	36	20
    Ohio__~				270	119	129	22

    VI. Chicago							366	156	155	52

    Illinois	 		 _ --_					55	36	18	1
    Indiana 			 	 _	___	1 194	81	86	26
    Minnesota	 _ _ 				18	11	7	0
    Wisconsin		 			1 99	28	44	25

    VII. Kansas City		„ . 				149	61	56	32

    Colorado		 		 		 	 „	55	30	15	10
    Iowa	 							5	1	2	2
    Kansas		 __ _ 				52	11	27	14
    Missouri					 				24	10	8	6
    Nebraska 					 _ 		8	4	4	0
    North Dakota	 	 - 			5	5	0	0

    VIII. Dallas		1,852	478	985	384

    New Mexico	 					6	1	4	1
    Oklahoma										83	23	40	20
    Texas		 		- __			i 1,763	454	941	363

    IX. San Francisco		329	109	149	69
    Arizona., 						1 9	4	2	1
    California.- 					 		136	41	57	38
    Montana	 Utah			 			14 170	6 58	6 84	2 28

    X. Nashville ._ ----------------- 		204	63	100	41

    Kentucky			__	9	4	5	0
    Tennessee	 		 		 ___	159	49	74	36
    Virginia		36	10	21	5
    XI. Atlanta		2,988	764	1,568	644
    Florida		 _	305	99	167	39
    Georgia				___	-	1 1,113	296	598	218
    North Carolina		i 695	191	340	163
    South Carolina				 -			1875	178	463	224

    Santurce, P.R		_.. - 			28	15	10	3

    Puerto Rico—					 		28	15	10	3

    1 Includes illegally employed minors tor whom no age was reported: All regions, 46; Massachusetts, 1; Alabama, 23; Indiana, 1; Wisconsin, 2; Texas, 5; Arizona, 2; Georgia, 1; North Carolina, 1; South Carolina, 10.
    197
    Appendix table F.—Findings in safety and health inspections made under the Public Contracts Act, by region and State, fiscal year 1964
    Region and State	Number of establishments inspected			Establishments found in violation of safety and health provisions
    	All States	By Federal inspectors	By State inspectors	By Federal inspectors	By State inspectors
    United States		i 3,851	2,243	1,608	1,969	683
    I. Boston		471	31	440	26	80
    Connecticut2			 		137	0	137	0	0
    Maine		- - 	 .	5	5	0	5	0
    Massachusetts 2_	. _ 		262	0	262	0	80
    New Hampshire			 -	19	19	0	14	0
    Rhode Island 2._ 		41	0	41	0	0
    Vermont		7	7	0	7	0
    II. New York City		651	27	624	24	301
    New Jersey2 			221	1	220	1	74
    New York 2		430	26	404	23	227
    III. Chambersburg		215	215	0	173	0
    Delaware			 		5	5	0	5	0
    District of Columbia	_		18	18	0	17	0
    Maryland—		 		46	~ r 46	0	35	0
    Pennsylvania		146	W 146	0	116	0
    IV. Birmingham		179	179	0	174	0
    Alabama. 	 __	70	70	0	67	0
    Arkansas				....	43	43	0	42	0
    Louisiana						44	44	0	44	0
    Mississippi		22	22	0	21	0
    V. Cleveland		314	314	0	294	0
    Michigan				115	115	0	106	0
    Ohio.4		199	199	0	188	0
    VI. Chicago		372	372	0	307	0
    Illinois-..		 _ 		149	149	0	117	0
    Indiana.				70	70	0	69	0
    Minnesota		 			60	60	0	56	0
    Wisconsin		93	93	0	65	0
    /II. Kansas City		160	134	26	118	21
    Colorado	._ 		37	13	24	13	20
    Iowa..		 		 			18	18	0	15	0
    Kansas	 		17	15	2	14	1,
    Missouri	 			63	63	0	54	0
    Nebraska				 _	14	14	0	14	0
    North Dakota					0	0	0	0	0
    South Dakota		2	2	0	2	0
    Wyoming		9	9	0	6	0
    See footnotes at end of table.
    198
    Appendix table F.—Findings in safety and health inspections made under the Public Contracts Act, by region and State, fiscal year 1964—Continued
    Region and State	Number of establishments inspected			Establishments found in violation of safety and health provisions
    	All States	By Federal inspectors	By State inspectors	By Federal inspectors	By State inspectors
    VIII. Dallas		320	320	0	297	0
    New Mexico	 ..	..	47	47	0	41	0
    Oklahoma				53	53	0	49	0
    Texas		220	220	0	207	0
    IX. San Francisco		587	124	463	113	280
    Alaska. 	 			1	1	0	1	0
    Arizona. 					18	18	0	17	0
    California1 2	 			456	0	456	0	273
    Hawaii		 .. 		7	0	7	0	7
    Idaho.			 			11	11	0	11	0
    Montana	 		8	8	0	8	0
    Nevada	 		 _ _	3	3	0	2	0
    Oregon	 		29	29	0	25	0
    Utah	 .	23	23	0	22	0
    Washington		31	31	0	27	0
    X. Nashville		251	196	55	173	1
    Kentucky				51	51	0	42	0
    Tennessee... . _ __ ...		104	104	0	95	0
    Virginia...	 			68	13	55	9	1
    West Virginia		28	28	0	27	0
    XI. Atlanta		326	326	0	266	0
    Florida	 ..			129	129	0	101	0
    Georgia.			 			83	83	0	74	0
    North Carolina	 . 				87	87	0	70	0
    South Carolina		27	27	0	21	0
    Santurce, P.R		5		0	4	0
    1 In addition, 2,497 inspections were made to determine compliance with corrections required on first inspection.
    2 Working arrangement with the State whereby State inspectors make inspections.
    199
    Appendix table G. Number of learner certificates in effect on June 30, 1964, classified by industry, type of regulation, and type of certificate
    1 Some plants hold more than one certificate.
    200
    Appendix table H.—Minimum hourly wage rates in effect in Puerto Rico as of June 30, 1961, June 30,1963, and June 30, 1964
    Industry and classification	Minimum hourly wage rate			Effective date of current rate
    	June 30, 1961	June 30, 1963	June 30, 1964
    Alcoholic beverage and industrial alcohol: General classification.. _ 					 		$1.00	$1.15 1.00	$1.25 1.00	Nov. 3,1963 Dec. 7,1962
    New coverage classification . _ _
    Artificial flower/decoration, and party favor:
    General classification		.70	.85	.87)4	Nov. 3,1963
    New coverage classification					.85	.85	Oct. 5,1962
    Banking, insurance, and finance:
    General classification 				1.00	1.15	1.25	Nov. 3,1963 Nov. 3,1961
    New coverage classification __ 	 			1.00	1.00
    Button, jewelry7and lapidary work:
    Gem stone, industrial jewel and precious jewelry classification		1.00	1.15	1.25	Nov. 3,1963
    Button and buckle classification		.63	.74	.78)4	Do.
    Hair accessories classification,		 					.72	.88	.90	Do.
    Hair ornaments classification	 				.76	.95	.95	Oct. 7,1962 Nov. 3,1963
    Metal expansion watch band classification		.87	1.00	1.08)4
    Rosary and native jewelry classification		.47	.56	.58)4	Do.
    Plastic costume jewelry classification		.63	.77	.78)4	Do.
    General classification, . ,, 		 			.67	.82	.83^ .77	Do.
    New coverage classification					.77		Oct. 7,1962
    Chemical, petroleum, and related products:
    Agricultural chemicals, fertilizer mixing, hormones, antibiotics, and adrenalin, petroleum refining, and pipeline coating tapes classification		1.00	1.15	1.25	Nov. 3,1963
    Drugs, medicines, bay oil, aromatic alcohol, and toilet preparation classification		.77	.95	.96	Dec. 5,1963
    Miscellaneous chemical and petroleum products classification		.95	1.15	1.18)4	Do.
    Oil well drilling classification		1.00	1.15	1.25	Do.
    Industrial inorganic chemicals classification		.92		1.15	Mar. 18,1963 Do.
    New coverage classification: Bay oil and aromatic alcohol classification				.95	.95
    General classification...	_						1.00	1.00	Do.
    Children’s dress and related products:
    Hand-embroidery classification		.59	.75	.75	Jan. 7,1963
    Other operations classification		.76	.92)4	.95	Nov. 3,1963
    New coverage classification,,, _ 				1.00	1.00	Jan. 7,1963
    Communications, utilities, and transportation:
    General classification					1.00	1.15	1.25	Nov. 3,1963
    Other workers in motor carrier transport and express
    classification		.90	1.07	1.12)4	Do.
    New coverage classification 						1.00	1 00	Nov. 3,1961
    Construction, business service, motion picture, and miscel-
    laneous: Janitorial service classification		.95	1.15	1.18)4	Nov. 3,1963
    General classification,,, _ _ 	 				1.00	1.15	1.25	Do.
    New coverage classification			1.00	1.00	Nov. 19,1962 1
    Corsets, brassieres, and allied garments:
    General classification, _ 				.86	1.04	1.07)4 1.00	Nov. 3,1963 ,Dec. 29,1962
    New coverage classification, 	 _ 					1. 00
    Electrical, instrument, and related products:
    Classification A (shaver and hair dryer, storage battery, drafting machine, electrical terminal and connector, television antenna and lead-in cable, and portable hand tools)		1.00	1.15	1.25	Nov. 3,1963
    Classification B (electric irons, toaster elements, and hot water heaters, exposure meters, ammeters, voltmeters, accelerometers, and panel instruments; circuit breakers and service entrance equipment; armatures and field coils; switches and fluorescent starters; coils, including magneto coils, and breakers; solenoids, relays, including telephone-type relays, power-type relays and magnetic relay elements; electric wave filters; gyroscopes and related equipment; lighting fixtures and fluorescent lighting lamps (except light bulbs and Christmas lighting sets); floor polishers; soldering guns; electronic heating devices; electronic controls for auto headlight dimmers; electronic data processing machines and systems; soil moisture testing equipment; aircraft test instruments; strain gauge transducers; photoelectric cells; tape recorder heads and erase head assemblies; electronic guns for television picture tubes; and the repair and rewinding of electric motors and other electrical equipment)	-		1.00	1.15	1.25	Nov. 3,1963
    201
    Appendix table H.—Minimum hourly wage rates in effect in Puerto Rico as of June 30,1961, June 30,1963, and June 30,1964—Continued
    Industry and classification	Minimum hourly wage rate			Effective date of current rate
    	lune 30, 1961	June 30, 1963	June 30, 1964
    Electrical instrument, and related products—Continued: Classification C (capacitors, transistors, coils and coil forms, hermetic seals, crystal units, rectifiers, electronic tubes, television picture tubes, television sets, refrigerators, phonographic pickup cartridges, electric baseboard heating units, heating pads and massage pads, Christmas lighting sets, thermometers, drafting instruments, surgical administration sets, and watches)		1.00	1.15	1.25	Mar. 13,1964
    Classification D (lenses)		.90	1.10	1.12^	Do.
    Classification E (transformers, wire-wound resistors, and all products and activities not specifically included in any other classification)		.95	1.15	1.18^	Do.
    New coverage classification				1.00	1.00	June 21,1963 June 2,1964
    Fabric and leather glove: Hand-sewing on fabric gloves classification		.26	.28	.30
    Hand-sewing on leather gloves classification		.40	.46	.50	Do.
    Other operations on hand-sewn gloves classification		.60	.70	.80	Do.
    Machine operations on machine-sewn leather gloves classification		.82	.93	• 97M	Do.
    Machine operations on machine-sewn fabric gloves classification		.82	.95	.97^	Do.
    Other operations on machine-sewn gloves classification.	.73	.91	■ 97^	Do.
    New coverage classification 	__ __ 				.91	.91	Aug. 3,1963 Nov. 3,1963
    Fabricated plastic products: Dinnerware, sprayer, and vaporizer classification		1.00	1.15	1.25
    Phonograph record classification		.96	1.15	1.20	Mar. 12,1964
    Wall tile classification	 .	.80	.96	1.00	Do.
    General classification. _ 		 				 . .	.74	.89	.92^ .80	Do.
    New coverage classification					.80
    Food and related products: Biscuit and cracker classification		.95	1.15	1.18^	Nov. 3,1963
    Canning and preserving classification		.80	1.00	1.00	Apr. 12,1963
    Citron brining and fruit, vegetable, nut, and green coffee packing classification		.65	.78	.81	Nov. 3,1963
    Yeast and canned tuna fish classification		1.00	1.15	1.25	Do.
    General classification	 ... 		.85	1.02	1.06	Do.
    New coverage classification A (soft drinks, rice, crackers, pastry and cakes; frozen fish packing; bottling or canning of olives, capers and oils; ice cream chauffers; alimentary-pastes pressmen and helpers; master bread bakers, dough mixers, dough machine operators and bench hands; canning and preserving of fruits, vegetables, and other food products)		 			1.00	1.00	Apr. 12,1963 Do
    New coverage classification B* (milk and milk products; mixed feed; and ice cream) 		 . _		.85	.85
    New coverage classification G (coffee roasting; other bread workers; and other alimentary-pastes workers).		.80	.80	Do.
    New coverage classification D (general, including candy) 	 .. 			 .. _		.75	.75	Do.
    Handkerchief, scarf, and art linen: Hand-sewing classification		.28	.30	.31	Nov. 3,1963
    Other operations classification		.54	.56	.57	Do.
    Hand-sewing on oblong scarves classification		.64	.71	.72	Do.
    Other operations on oblong scarves classification		.79	.87	.88	Do.
    New coverage classification	. _ _		.71	. 71	Dec. 7,1962 Nov. 3,1963 Oct. 28,1962 June 29,1963 June 10,1964
    Hosiery: General classification							.68	.78	.82
    New coverage classification	 			 				.78	.78
    Leather, leather”goods, and related products: Belt classification	 	 		.80	1.00	1.00
    Hide curing classification		.95	1.15	1.18^
    Leather tanning and finishing classification	 _	.66	.78	.82^	Do.
    Sporting and athletic goods classification		.67	.81	.83^	Do.
    General classification		 .	__ 		.63	.74	.78>2	Do.
    New coverage classification .. 			 			. 74	.74	June 29,1963 Nov 3,1963
    Lumber and wood products: Carpet grippers classification		1.00	1.15	1.25
    Furhitiire and miscellaneous wood products classification		.70	.86	.87^	Do.
    Lumber, millwork, and balsa wood toys classification.	.80	.97	1.00	Do.
    Swimming pool equipment classification		.90	1.03^	1.12^	Do.
    New coverage classification: Billiard table	.. . 			 				1.00	1.00	Apr. 7,1963 Nov. 4,1961 Apr. 7,1963
    Table tops and kitchen cabinet craft masters and supervisors _	_________ ___ 					1.00	1.00
    General classification			.86	.86
    Ji-
    202
    Appendix table H.—Minimum hourly wage rates in effect in Puerto Rico as of June 30,1961, June 30,1963, and June 30,1964—Continued
    Industry and classification	Minimum hourly wage rate			Effective date of current rate
    	June 30, 1961	June 30, 1963	June 30, 1964
    Men’s and boys’ clothing and related products: Work clothing and separate trousers classification		.80	.97	1.00	Nov. 3,1963
    General classification-.. 				 			.75	91	• 93M • 82^	Bo
    New coverage classification		 _		• 82J^		Jan. 3,1963
    Metal, machinery, transportation equipment and allied products: Fabricated wire products classification
    	1.00	1.15	1.25	Nov. 3,1963
    Metal spring classification		.9714	1.12	1.22	Mar. 13,1964
    Slide fastener classification		.95	1.09	1.18M	Do.
    Wire drawing classification		1.00	1.15	1.25	Do.
    General classification		1.00	1.15	1.25	Nov. 3,1963
    New coverage classification	 ...	 _		1.00	1.00	June 21,1963
    Needlework and fabricated textile products:
    Knit gloves and crocheted slippers classification		.76	.95	.95	Jan. 6,1963
    Hand-crocheting and hand-embroidery of crocheted hats classification		_ 					. 60	. 75	.75	Do. Nov. 3,1963
    Other operations on crocheted hats classification		.82	.98	1.02^
    Slacks and related products classification		.82	1.00	1.02^	Do.
    General classification		.83	1.03^	1.03J^	June 6,1963
    New coverage classification	 			1.00	1.00	Do.
    Paper, paper products, printing, and publishing:
    Paper box and paper box partition classification		1.00	1.15	1.25	Nov. 3,1963
    Pulp, paper, and paperboard, paper bag, daily newspaper and new syndicate, photoengraving, filing cards and indexes, fototype letters, paper for sanitary use, and commercial printing by the silk screen process classification		1.00	1.15	1.25	Do.
    General classification		.90	1.06	1- 12M	Do.
    New coverage classification.		 	 .		.78	. 78	June 3,1963
    Rubber products:
    Rubber bucket classification		.75	.93	.931^	Nov. 3,1963
    Rubber footwear classification	 ...	.83	.98	1.00	Dec. 5,1963
    Tire recapping classification		.92	1.15	1.15	Mar. 18,1963
    Miscellane’ous rubber products classification		1.00	1.15	1.25	Nov. 3,1963
    New coverage classification	 ...		1.00	1.00	Mar. 18,1963
    Shoe and related products:
    General classification...				.66	.80 . 82J4	.82^ 821^	Nov. 26,1963 Mar. 18,1963
    New coverage classification...	 	...
    Stone, clay, glass, cement, and related products:
    Abrasive products, cement, dry cement mixes, glass and glass products, hot asphaltic plant mix, ready-mixed concrete, concrete block and tile, concrete pipe, precast concrete construction components, structural clay products, and ceramic floor and wall tile classification		1.00	1.15	1.25	Nov. 3,1963
    Artificial teeth classification. 	 		 .	1.00	1.15	1.25	Do. Dec. 15,1963
    Asbestos cement products, high purity silicon, and crushed stone, sand, and gravel classification	1.00	1.15	1.25
    Art pottery classification	 _	.57	.72	.72	June 3,1963
    Mica classification		.72	.92^	.92^	Do.
    Vitreous and semivitreous china food utensils classification		.78	.95	.97^	Dec. 15,1963
    General classification		.90	1.06	1-12^	Nov. 3,1963
    New coverage classification: Terrazzo and marble tiles			 _		1.00	1. 00	June 3,1963 Do. Nov. 3,1963
    General				 			. 75	. 75
    Straw, hair, and related products: Artists’ brush and native handicraft products classification		.48	.65	.65
    Hair and bristles processing and other straw, hair, and related products classification		 _	.57	.70	.71	Do.
    Hair piece and doll wig classification		.70	.80^	• 87.V6	Do.
    New coverage classification	 ... 	 .		.70	.70	Nov. 2,1962 Nov. 3,1963 Dec. 7,1962 Nov. 3,1963 Dec. 7,1962 Nov. 3,1963
    Sugar manufacturing: General classification ...		 				1.00	1-12^ 1. 00	1.17^ 1. 00
    New coverage classification
    Sweater and knit swimwear: General classification	 				1.00	1.12	1.17
    New coverage classification				1.00	1. 00
    Textile and textile products: Bag cleaning and repairing classification		.60	.70	.75
    Broadwoven fabrics classification			.73	. 85	Do. Do.
    Hooked rug classification: Multiple-needle power-driven machine operations..	.76	.88	.95
    Other operations		.58	.68	■72^	Do.
    Mattresses and pillow classification	 		1.00	1.15	1.25	Do.
    Yarn classification			.79	.85	Do. Do.
    General classification		.68	.75	.85
    203
    Appendix table H.—Minimum hourly wage rates in effect in Puerto Rico as of June 30,1961, June 30,1963, and June 30,1964—Continued
    Industry and classification	Minimum hourly wage rate			Effective date of current rate
    	June 30, 1961	June 30, 1963	June 30, 1964
    Textile and textile products—Continued New coverage classification: Mattress and bedsprings: Craft masters and supervisors				1. 00	1. 00	Nov. 4,1961 Oct. 28,1962 Do.
    Skilled workers		 	 _			1. 00	1 00
    General		 		-			 __		.85	.85
    Tobacco: Filler hand stemming classification	__	_ 		.38	1.471^	. 50	June 24,1964 Do. Do.
    Filler tobacco processing classification _				.38	2.47'1-1	.48
    Machine threshing, other operations classification. _ __	.72	1. 80"	.85
    Wrapper type tobacco processing classification		.75	i. 85	.88	Do.
    General classification-— 	 __ _	.90	1 1. 00	1 06	Do. Nov. 4,1961 Nov. 3,1963 Aug. 29,1963 Do.
    New coverage classification 	 		 _		.70	.70
    Wholesaling, warehousing, and other distribution: General classification-		 		 _	1.00	1.15	1 25
    New coverage classification: Janitors, messengers, and baggers in retailing.-			2. 78	.78
    Gasoline service stations		 	 	 			2. 75	. 75
    Meatcutters	 -	- _ _						21.00	1.00	Do.
    Other workers in retailing.. _ 			2.88	.88	Do.
    Other new coverage.. -	-	__ __		3 1. 00	1. 00	Nov. 3,1961 Nov. 3,1963 Do.
    Women’s and children’s underwear and women’s blouse: Hand-sewing classification		 		_ _ _	___ __	.64	.75	.78
    Other operations classification--- 						.79	.92}^	• 95J^
    New coverage classification			_ __ _ _ _ __		.75 "	.75’ ”	Dec. 7,1962

    1	Rates actually became effective Aug. 10,1963.
    2	Rates actually became effective Aug. 29,1963.
    3	Rates actually became effective Nov. 3,1961.
    Appendix table I.—Minimum hourly wage rates in effect in the Virgin Islands as of June 30, 1964
    Industry and classification	Miniminn hourly rate	Effective date
    Air transportation industry:
    General classification 		-	-		-			$1.25 1.00	Nov. 3, 1963 Nov. 10, 1961
    New coverage classification
    Alcoholic beverage and industrial alcohol industry		.90	Nov. 16, 1963
    Banking, real estate, accounting, and insurance industry:
    General classification	_			_	______	_ 			1. 25	Nov. 3, 1963
    New coverage classification		1.00	Nov. 10; 1961
    Bay rum and other toilet preparations industry:
    General classification			 			 		- 			1.15	Nov. 16, 1963
    New coverage classification		1.00	Nov. io; 1961
    Communications and public utilities industry:
    General classification _	_ _			 	 -	-	-	- _	1.25	Nov. 16, 1963 Nov. 10, 1961
    New coverage classification		1.00
    Distribution, trucking, and construction industry:
    General classification -				 -		 		- -	1.15	Nov. 16, 1963 Do.
    Retailing classification		1.00
    General new coverage classification		1.00	Do.
    Jewelry, pen, thermometer, industrial belting, and miscellaneous metal products industry:
    Clock, watch, and watch band classification		1.15	Do.
    General classification				 	_ 	-			1.00	Do.
    New coverage classification				1.00	Do.
    Shipping, marine transportation, and ship and boat building industry:		Nov. 3, 1963 Nov. 10, 1961
    General classification-- - - 	_	-	- -				1. 25
    Seamen classification _	__ 	 —		 ____ 	-		1.00
    General new coverage classification. 			 -			 -	1.00	Do.
    Miscellaneous industry: Fruit and vegetable packing, farm products assembling, and meat packing
    classification				 _ 				 _	_	_	.75	Nov. 3, 1963
    New coverage _ 	 - -		 -	- -	 		-	.75	Nov. 16i 1963
    Stone crushing and quarrying and ready-mixed concrete classification		1.15	Do.'
    New coverage 							-		-		1. 00	Do.
    Textile classification		- - 			 -----	1.00	Do.
    New coverage 			 _			 ______	1.00	Do.
    General classification 						 			 _	.82*^	Do.
    New coverage 	- -	 			-		- -		.82^	Do.

    204
    Appendix table J.—Minimum hourly wage rates in American Samoa, effective September 9, 1963
    Industry and classification	Minimum wage rate (per hour)	Industry and classification	Minimum wage rate (per hour)
    Fish canning and processing and can manufacturing industry	 Shipping and transportation industry: Seafaring classification	 Other activities classification		$1.00 .55 1.00	Petroleum marketing industry	 Construction industry	 Miscellaneous industries		$1.00 .70 .80
    Appendix table K.—Summary of minimum wage determinations applicable under the Walsh-Healey Public Contracts Act J June 30, 1964
    Industry
    Minimum hourly wage rate
    Effective date2
    Employment at less than determined rates 3
    All industries and localities except those indicated below.
    Battery:
    Lead-acid storage battery branch------
    Dry primary battery branch------------
    Other battery branch------------------
    Bituminous coal (including lignite):
    Districts:
    1—Eastern Pennsylvania____________
    2—Western Pennsylvania------------
    3—Northern West Virginia__________
    4—Ohio____________________________
    5—Michigan------------------------
    6—Panhandle_______________________
    7—Southern No. 1__________________
    8—Southern No. 2______________;---
    9—West Kentucky___________________
    10—Illinois_______________________
    11—Indiana------------------------
    12—Iowa---------------------------
    13—Southeastern-------------------
    14—Arkansas-Oklahoma______________
    15—Southwestern___________________
    16—Northern Colorado______________
    17—Southern Colorado--------------
    18—New Mexico_____________________
    19—Wyoming________________________
    20—Utah___________________________
    21—North Dakota-South Dakota______
    22—Montana________________________
    23—W ashington____________________
    Chemical and related products:
    Industrial and refined basic chemical products branch. Bone black, carbon black, and lamp black branch.
    Conveyors and conveying equipment---------
    Drugs and medicine------------------------
    Electric lamp-----------------------------
    Electron tubes and related products:
    Solid-state semiconductor devices branch—.
    Electron tubes branch-----------------
    Electronic equipment----------------------
    Engines and turbines:
    Steam engines, turbines, and turbine generator sets branch.
    Internal combustion engines branch----
    Evaporated milk---------------------------
    Flour and related products_________________
    Machine tools:6
    Employees engaged in the occupations of blueprint machine operator or draftsman.
    Employees engaged in other occupations— Manifold business forms--------------------
    Metal business furniture and storage equipment.
    $1.25	Mar. 20,1964
    1.80	Dec. 11, 1963
    1.41 1.41 2.745	Oct. 20, 1958	Auxiliary workers $1.25, effective Mar. 20,1964.
    2.745		do
    2.745		do
    2.745		do
    1.25	Mar. 20,1964	(4).
    2.745	Oct. 20, 1958
    2.745		do
    2.745		do
    2.59		do
    2.745		do
    2.78		do
    1.40	Nov. 25,1955
    2.515	Oct. 20, 1958
    2.59		do
    2.59		do
    2.796		do
    2.796		do
    2.796		do
    2.82		do
    2.82		do
    2.226	Nov. 25,1955
    2.846	Oct. 20, 1958
    2.735		do
    1.25	Mar. 20,1964	(4).
    1.40	Jan. 23, 1951	Beginners $1.35 for not more
    1.70	Aug. 14, 1963	than 320 hours.
    1.45	Feb. 21, 1962
    1.65	Apr. 12, 1963
    1.35	Jan. 7, 1961
    1.42		do
    1.52	May 4, 1963
    1.71	Oct. 30, 1963
    1.69		do
    1.68	Jan. 15, 1960	Probationary workers $1.63
    1.30	Mar. 5,1959	for not more than 160 hours.
    1.65	May 23, 1963
    1.80		do
    1.39	Sept. 16,1961
    1.43	June 10, 1961
    See footnotes at end of table.
    205
    Appendix table K.—Summary of minimum wage determinations applicable under the Walsh-Healey Public Contracts Act,1 June SO, /5f?4~~Continued
    Industry	Minimum hourly wage rate	Effective date1 2	Employment at less than determined rates 3
    Miscellaneous chemical products and preparations:
    Product group 1 (specialty cleaning, polishing, and sanitary preparations; surface active agents, finishing agents and sulfonated oils and assistants; and agricultural chemicals).	1.42	Dec. 4, 1961
    Product group 2 (adhesives, glues, mucilage, cements and sizes; gelatin; household tints, dyes, and bleaches; bluings; writing inks; essential oils; industrial compounds; automotive chemicals; and evaporated salt).	1.80		do
    Office, computing, and accounting machines		1.55	Mar. 12,1962
    Paint, varnish, and related products	 Paper and paperboard containers and packaging products:	1.50	July 24, 1958	Probationary workers $i.«u for not more than 480 hours.
    Non textile bags branch		1.30	Feb. 3, 1961	Beginners or probationary workers for not more than 240 hours at 5£ less than the applicable minimum.
    Corrugated and solid fiber boxes branch		1.53		do		Do.
    Sanitary food containers branch			1.37	__ __do		Do.
    Wrapping products branch	 Paper and pulp:	1.25	Mar. 20,1964	(4 5).
    Primary paper and pulp branch		1.75	Sept. 16,1961
    Rag paper and pulp branch .			1.54		do	 .
    Converted sanitary paper products branch.	1.55		do
    Building paper and building board branch.	1.64		do
    Photographic and blueprinting equipment and supplies.	1.52	June 10, 1961
    Pumps and compressors	 Scientific, industrial, and laboratory instruments:	1.65	June 11, 1963
    Electrical indicating instruments and service test equipment.	1.35	June 28, 1963
    Other products		1.50		do
    Soap and related products		1.50	Dec. 8, 1958
    Tires and related products		1.77	June 3, 1960	Beginners or probationary workers $1.67 for not more than 160 hours.
    1 Determinations are not enforced in Puerto Rico or the Virgin Islands.
    2 Rate applies to contracts subject to the Public Contracts Act, bids for which are solicited or negotiations otherwise commenced on or after the date specified.
    3 Handicapped workers, student-learners, and apprentices in any industry may be employed at wages lower than the determination minimum pursuant to the certification standards and procedures prescribed in section 50-201.1102 of the general regulations under the Walsh-Healey Public Contracts Act.
    4 Learners may be employed at wages lower than the wage determination minimum if certificated in accordance with the learner regulations (29 CFR Part 522) issued under the Fair Labor Standards Act.
    5 The District Court for the District of Columbia has enjoined the enforcement of this determination with respect to named plaintiffs and all other manufacturers who may submit themselves to the court’s jurisdiction by appearing and filing undertakings to make up any underpayments if the determination should be held valid.
    206
    Appendix table L.—Number and value of unclassified contracts subject to the Public Contracts Act, by fiscal year, 1937-6j
    Fiscal year	Number of contracts 1	Value (in thousands)2	Fiscal year	Number of contracts 1	Value (in thousands)2
    Total, all years	1,449,217	$307,358,541	1950 		22,349 57,493 65, 475 54,210 44,081 33,270 30,916 53,002 50,519 73,525 64,339 76,254 88,715 95,505 93,468	$2,784,325 10,422,848 10,978,395 10,978,817 7,932,035 6,383,855 6,051,504 10,671,587 9,270,474 13,452,536 11,787,570 16,957,694 20,919,824 21,020,501 22,194,402
    1937 (9 months) 					1951
    	3,223 5,158 6,396 9,324 24,333 59,536 101,224 98,167 135,260 35,366 19,303 21,413 27,393	177, 780 294,953 528,393 799,733 5,085,694 15,867, 769 30,935,632 30,216,662 28, 708,335 5,224,234 1,655,595 2,360,105 3,606,280
    			1952
    1938.'.	 					1953
    1939			1954
    1940			1955
    1941				1956
    1942			1957
    1943			1958
    1944			1959
    1945					1960
    1946					1961
    1947			1962
    1948			1963
    1949			1964

    i Includes contracts for which no value was reported on the notice of award; some of these contracts may not be covered by the act.
    2 For statistical purposes, the amount included for indefinite-amount contracting indicating only an upper limit (e.g., “not to exceed $50,000”) is that limit; contracts for more than $10,000 are coded $10,000; and no value is included for those contracts reported as “indefinite” or for which no value is shown.
    Note: Amendments and supplemental awards to existing contracts are treated in the same manner as the original contract.
    Appendix table M.—Number of minors found employed on farms in violation of the child labor provisions of the Fair Labor Standards Act, by age and present or last school grade attended, fiscal year 1964 1
    Age	Present or last grade attended													Below normal grade for age
    	Total all grades2	Never at- i* tended school	1	2	3	4	5	6	7	8	9	10	11	Number	Percent of total in age interval
    Total, all years		7,841	98	512	701	961	ZZO‘1	1,207	1,088	914	703	403	159	18	4,001	51
    5 years				15	12	3											0	0
    6 years		173	33	120	19	1									33	19
    7 years		299	20	163	95 | 19 '162 1127		2								20	7
    8 years		423	2	97			30	5							99	23
    9 years				642	6	58	185	206 1153		33	1						249	39
    10 years		829	7	32	114	224	212	194	42	4					377	45
    11 years		921	5	15	59	144	227	238	188	40	5				450	49
    12 years..		1,066	3	5	35	117	152	263	256	196	37	2			575	54
    13 years		1,244	3	7	16	63	163	220	261	245 |226		39	1		733	59
    14 years		1,148 1,081	5	5	4	37	84	143	205	234	226 |164		40	1	717	62
    15 years			2	7	12	23	54	111	135	195	209 1198		118	17	748	69

    i 131 illegally employed minors were omitted for the following reasons: (1) 74 for whom no school information was available; (2) 46 for whom age was not reported; (3) 11 who were in special ungraded classes.
    2 The figures between heavy lines in the table indicate normal school attainment for that age child. Based on the usual standard of measurement, developed by the U.S. Office of Education, 6 to 7 is considered normal attendance in the 1st grade, 7 to 8 for the 2d grade, etc., with attendance of 1 grade each year.
    207
    Appendix table N.—Number of nonlocal minors found employed on farms in violatidn of the child labor provisions of the Fair Labor Standards Act, by age and present or last school grade attended, fiscal year 1964 1
    Present or last grade attended
    Below normal grade for age
    Age
    Total all^ grades^2
    Never attended school
    Total, all years-_
    5 years________
    6 years________
    7 years________
    8 years________
    9 years________
    10 years_______
    11 years_______
    12 years_______
    13 years_______
    14 years_______
    15 years_______
    2,610
    241 336 394 408
    9
    43 104 139 205 272 275 370 408
    396 389
    9
    16
    9 1
    3
    6
    4
    3
    2
    5
    2
    25
    76
    53
    36
    24
    10
    4
    4
    4
    5
    2
    16
    65
    89
    73
    39
    27
    12
    3
    10
    2
    16
    55
    96
    76
    74
    39
    21
    15
    1
    3
    16
    46
    80
    90
    89
    46
    37
    19
    67 |
    101 |
    69
    22 _ | 43 | 22 | 106 51 | 116 “ ’
    77
    63
    15
    55
    78 | 52
    98 | 57
    Number
    1,939
    0
    16
    9
    54 128 199 209 304 329 335 356
    Percent of total in age interval
    74
    0
    37
    9
    39
    62
    73
    76
    82
    81
    85
    92
    1	66 illegally employed minors were omitted for the following reasons: (1) 55 for whom no school information was available; (2) 8 for whom age was not reported; (3) 3 who were in special ungraded classes.
    2	The figures between heavy lines in the table indicate normal school attainment for that age child. Based on the usual standard of measurement, developed by the U.S. Office of Education, 6 to 7 is considered normal in the 1st grade, 7 to 8 for the 2d grade, etc., with attendance of 1 grade each year.
    Note: Nonlocal minors are those who do not return to their permanent homes each day.
    208
    APPENDIX II
    CHILD LABOR STANDARDS
    Fair Labor Standards Act
    The child labor provisions of the Fair Labor Standards Act establish a 16-year minimum age for general employment, with an 18-year minimum age for occupations declared hazardous by the Secretary of Labor, and a 14-year minimum age for employment in a variety of occupations, outside school hours, under specified hours and conditions of work. A minor under 16 years of age may not be employed in agriculture during the hours when school is in session in the school district in which the minor is living while so employed.
    These provisions apply to employees engaged in interstate commerce or in the production of goods for such commerce, and to employment in certain large enterprises engaged in commerce or in the production of goods for commerce. The child labor provisions of the act also prohibit any producer, manufacturer, or dealer from shipping or delivering for shipment in interstate commerce any goods produced in an establishment in or about which any minors have be,en illegally employed within 30 days prior to the removal of such goods.
    Walsh-Healey Public Contracts Act
    Under the child labor provisions of the Walsh-Healey Public Contracts Act, boys under 16 years of age and girls under 18 may not be employed on contracts in excess of $10,000 let by the Federal Government for materials, supplies, articles, or equipment.
    Investigation Findings
    Investigations during fiscal year 1964 disclosed 21,006 1 minors employed in violation of the child labor provisions of the FLSA and the PCA—an increase of more than 25 percent over fiscal year 1963. Of this total, 13,0341 were employed in nonagricultural establishments and 7,972 were children under 16 years of age illegally employed in agriculture during school hours.
    Findings in Nonagricultural Establishments
    Child labor violations occurred in nonagricultural establishments in the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam. Among the 13,034 minors who were illegally employed, 7,388, or
    1 Included in these totals were 35 minors employed contrary to the child labor provisions of the PCA; 23 of whom were employed in violation of the PCA only and 12 in violation of both acts.
    749-199—65---15
    209
    57 percent, were under 16 years of age; 5,623 were 16- and 17-year-old youths employed contrary to hazardous occupations orders; and 23 were employed in violation of the minimum age requirements of the PCA only. (See appendix table C.)
    Occupations of Minors Under 16
    Minors 14 and 15 are permitted to work in a number of occupations outside school hours and for limited periods of time. However, investigations showed that many violations resulted from employment of children under 16 in prohibited occupations, such as working in warehouses and in construction, manufacturing and processing, and in occupations found to be hazardous for the employment of 16- and 17-year-old youth.
    A 14-year-old boy and two youths aged 15 worked 5 months in a hideprocessing plant as graders and loaders of hides and operators of a fork lift. Operation of a fork lift is so hazardous that it is prohibited for employment of 16- and 17-year-old youths. In retail and food service establishments, the bulk of violations resulted from minors working more than 3 hours a day and 18 hours a week while schools were in session and after 7 p.m. or before 7 a.m. In many instances, more than one child labor standard was violated.
    Although employment of children under 14 years of age is prohibited in firms subject to the FLSA, a number of minors under 14 were found illegally employed. A 13-year-old was employed 8 months in a printing shop cleaning up and helping the press operator. Two 13-year-old boys were found working at a bakery loading the trucks one had worked for a year and the other for 2 years. Children 9, 11, and 13 were employed 3 months in a produce warehouse unloading trucks and bagging produce for resale. Boys 8 and 13 were found mixing mortar, transporting it in wheelbarrows, and carrying timbers for use in scaffolding. Seventy-two minors from ages 7 to 15 were found working in a shrimp shed as headers of shrimp.
    Young children often worked excessive hours. Nineteen boys, ages 12 to 15, stuffed newspapers from 12:30 a.m. to 3:30 a.m. Three 15-year-olds and one 14-year-old worked 6 hours a day, 6 days a week, and until 10 p.m. in a grocery store. During weeks school was in session, this meant a 12-hour day for these boys and at least a 72-hour week, including the school hours. A boy, aged 15, who was a carpenter s helper, worked 14% hours one day and 53% hours one week. Two 14-year-old girls and two aged 15 worked from 3:30 p.m. until 11:00 p.m. in a manufacturing plant.
    Long hours of work interfere with a young person s opportunities to do his school work and frequently affect his health. Employment in prohibited occupations also exposes these young workers to potential dangers with which they are not prepared to cope. Child labor standards were not designed to prevent young people from working, but rather to insure as
    210
    nearly as possible their educational opportunities and to protect them from work that is too hazardous or that affects their health and well-being.
    Child Labor Findings in Agriculture
    A 16-year minimum age is applicable to employment in agriculture during the hours schools are in session in the district where the minor lives and works. Agricultural employment is exempt from the child labor provisions of the act outside school hours. There is also an exemption for children working exclusively for their parents or guardian on their own farms.
    Agricultural child labor investigations were made in 37 States and Puerto Rico. Crops grown on farms where investigations were made included tomatoes, strawberries, cotton, tobacco, coffee, nuts, and sugarcane, as well as other vegetables and fruits. More of these farms grew cotton than any other crop.
    During fiscal year 1964, 7,972 minors under 16 years of age were found employed during school hours in violation of the FLSA on 2,562 farms. Of these, 5,296 were local children and 2,676 were migrants. Nearly 20 percent (1,578) of the minors employed illegally in agriculture were 9 years of age or younger. More than half (4,094) of the minors found were 10 to 13 years of age, while 28 percent (2,254) were 14 and 15 years of age. Over 6,000 of the minors found illegally employed during school hours worked in cotton fields. (See appendix table E.)
    Preschool-age children were also working on farms. Their employment, however, is not a violation of the act, since there are no school hours, of course, for children below school age.
    The educational level of children found illegally employed on farms is graphically portrayed by information obtained on the last grade attended at school. Of the 7,841 children who furnished information on the last grade attended, 51 percent were in grades below the normal for their ages. As might be expected, educational achievement in relation to ages becomes lower as the children increase in age. Thus, at 14 years of age, 62 percent of the children employed in violation were enrolled in grades below the normal for their ages, and at age 15, the percentage was 69. (See appendix table M.)
    Of the migrants found illegally employed, information on last grade completed was obtained for 2,610. Sixty of these children had never attended school, and 74 percent were in grades below the normal. At 14 years of age, the percentage increased to 85, and at age 15, 92 percent were behind in scholastic attainment. (See appendix table N.)
    Low educational achievements of children working in agriculture may be related to deficiencies in school attendance laws, crop vacations, inadequate school facilities, and language barriers for migrant children.
    This year there appeared, in general, to be more acceptance of migrant children in local schools. The number of postponed openings of schools so that crops could be harvested had diminished somewhat. There were still many instances of crop vacations for 6 weeks or more. This was true
    211
    particularly in small rural schools. In one area, however, the State is operating a pilot project under which migrant youngsters go to school 8% hours a day for 6 months, covering the same ground that is included in the regular school in a year.
    Youngsters working on farms are subject to a variety of accidents, some of which are fatal or disabling. Information from those States reporting accidents on farms indicates that there were 200 minors injured in farm employment and agricultural services.
    Operating or riding on tractors often results in fatal accidents to youngsters. A 14-year-old boy in California was killed when the tractor he was driving toppled over, crushing him.
    Machines such as cornpickers and grinders in a cane mill can mangle children. An 8-year-old Pennsylvania boy had his arm severed when his sleeve caught in a cornpicker, and a 13-year-old Alabama boy had his hand mangled while feeding sugarcane into the cane mill—his hand had to be amputated.
    Minors Employed in Hazardous Occupations
    Under the authority granted in section 3(1) of the FLSA, the Secretary of Labor has issued 17 orders covering hazardous occupations. An 18-year age minimum applies in such occupations. As need arises, occupations in which minors have suffered serious injury or death are carefully reviewed and action taken as necessary. The recent amendment by the Secretary of Labor adding meat patty forming machines to Hazardous Occupations Order No. 10, which covers meat processing, among other occupations, is illustrative. Another example was the consultation and research undertaken to determine the advisability of amending order No. 7 to permit 16- and 17-year-old minors to operate certain automatic type freight elevators. Careful review of the facts indicated that this change was not desirable and no further action was taken.
    During the 1964 fiscal year, 6,839 minors under 18 were found employed in occupations covered by one or more of the hazardous occupations orders. Approximately 70 percent (4,804) were employed in violation of order No. 2 as motor-vehicle drivers or helpers. A total of 1,081 minors under 18 were illegally employed in the operation of elevators and other power-driven hoisting machines covered by Hazardous Occupations Order No. 7; 350 were illegally employed in logging and sawmilling, covered in Hazardous Occupations Order No. 4; and 340 were illegally employed in the operation of power-driven woodworking machinery covered in Hazardous Occupations Order No. 5. These four hazardous occupations orders accounted for over 96 percent of the violations found in hazardous occupations. (See appendix table D.)
    Minors who were employed contrary to the 18-year minimum age required for employment in the occupations which have been declared hazardous included young boys working on wood slabs in a sawmill in violation of order No. 4 and boys ranging in age from 13 to 17 employed as helpers
    212
    on a truck for a waste-paper products company (order No. 2). A 13-year-old boy worked as a butcher’s helper (order No. 10), while a wrecking company employed boys of 14 to 17 in wrecking operations (order No. 15). A clay tile company hired 11- and 12-year-old boys to work on a kiln conveyor (order No. 13).
    Accidents in which young people are seriously injured or killed stress the continued need for vigilance in enforcing the child labor provisions. Reports of injuries to employed minors under 18 years of age, sent to the U.S. Department of Labor by 25 States, indicate that in the period from January to June 1964 there were 3,334 injuries to these young workers. The Divisions reported a number of serious accidents to youths who were employed contrary to the hazardous occupations orders.
    A 16-year-old minor was fatally injured while loading pulpwood on a truck. He lost his footing and, as he fell, a 4-foot log rolled off the truck, hitting him on the side of his head (order No. 4).
    A 16-year-old minor was decapitated in a freight elevator accident while operating the elevator in a food store (order No. 7).
    A 16-year-old helper on a truck lost fingers of both hands while helping to load the truck. The boy was working under the back of the truck and put a hand on the hoist cable to pull himself up. The driver did not see the boy and put the power hoist in gear. The youth’s hand was caught between the cable and roller. In his panic, the boy grabbed the cable with his other hand and both hands were so badly crushed that the fingers had to be amputated.
    Another 16-year-old lost four fingers on his right hand while operating a meat grinder in a meat market (order No. 10).
    One firm had two accidents within 1 year which involved 16-year-old boys who were injured while operating punch press machines. Both boys sustained serious hand injuries, one resulting in amputation. The accidents occurred in one case while the boy was feeding a press and in the other while he was retrieving a piece of metal from a defective press. In a similar accident in another firm, a 17-year-old youth lost the index finger and thumb of his right hand while operating a punch press machine.
    When the truck he was driving flipped end over end, a 17-year-old youth suffered a broken leg, broken pelvis, broken arm, and brain concussion.
    Age and Employment Certificates
    The FLSA provides that an employer may protect himself from unintentional violation of the child labor provisions of the act if he has on file an age or employment certificate showing that the minor is the legal age for the occupation in which he is employed. The employer is not required to obtain such certificates but many avail themselves of the protection afforded them by getting certificates for their young workers.
    State age and employment certificates are accepted as proof of age under both the FLSA and the PCA in 45 States, the District of Columbia, and
    213
    Puerto Rico. During fiscal year 1964, over 964,000 employment and age certificates were issued in these areas for minors age 14 through 17.
    In four States—Idaho, Mississippi, South Carolina, and Texas Federal certificates of age are issued by the Divisions, since the States do not provide a certification program. Special arrangements for accepting documentary proof of age are in effect in Alaska. A total of 16,128 Federal certificates were issued in fiscal year 1964, 1,800 more than in the previous fiscal year. Over 70 percent (11,741) were issued for the employment of 16- and 17-year-old youths. Less than 2 percent (305) were issued to 14- and 15-year-old minors. About 21 percent were issued to minors 18 years of age or over.
    This increase in the number of certificates issued does not necessarily reflect higher employment of youth. This may be a factor, of course, but it may also be true that more and more employers are availing themselves of the protection provided them by obtaining age certificates for their young workers.
    Information Activities
    Child Labor Bulletin No. 101 and “ A Message to Young Workers”—two informational publications on the child labor provisions of the FLSA— were revised. The former is widely used by local issuing officers in the States cooperating with the Department in issuing State employment and age certificates which are accepted as proof of age under the act. The latter is a less technical publication directed to the young worker, requested by such agencies and individuals as State labor departments and high school counselors.
    Regional and field office representatives spoke before many professional, business, civic, and farm groups on the child labor provisions. Also, many requests for information were received from school officials at all levels of government with whom the regional staff works closely.
    Part of the Divisions’ educational activities was directed to furthering compliance with the provisions applicable to the employment of children in agriculture. In the spring and autumn, campaigns concerned with child labor in agriculture were directed primarily to the parents and prospective farm employers of young people. Additionally, a special program was “beamed” to migratory workers in their home areas in the Southeast and Southwest before they left with their families to work on farms in other sections of the country. As in previous years, radio stations and local daily and weekly newspapers cooperated, as did employer groups such as the canners’ and growers’ associations. Both Federal and State farm placement agencies alerted contractors and recruiters of farm labor to their responsibilities under the act. Thousands of migrants, in addition to crew leaders, were provided with leaflets in English and Spanish.
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    WOMEN’S BUREAU
    The past year has seen the most significant gains in the position o£ women since they won the right to vote 44 years ago. The Women’s Bureau provided active leadership in this dramatic progress.
    Three major developments contributed to the economic, social, and political advancement: the report of the President’s Commission on the Status of Women, the Federal Equal Pay Act which became effective June 11,1964, and a growing national concern with the problems of poverty.
    COMMISSIONS ON WOMEN
    The President’s Commission on the Status of Women presented its report in October 1963. This document, “American Women,” stimulated an upsurge of interest throughout the country in fuller use of the Nation’s womanpower and in advancing the economic, social, and legal status of women.
    In summary, the Commission recommended improvement of education and counseling for women and girls; new and expanded services to enable women to meet more effectively their responsibilities as homemakers and workers; equal opportunities for women in hiring, training, promotion, and pay; improvement of minimum wage laws and other labor legislation affecting women; greater social insurance and tax benefits for women; action to insure women equality under the law; and a greater role for women as citizens.
    The Commission also recommended that continuing leadership be provided at the Federal level to further objectives proposed in its report, and on November 1, 1963, the Interdepartmental Committee and the Citizens’ Advisory Council on the Status of Women were established by Executive order. The Secretary of Labor was designated Chairman of the Committee and the Director of the Women’s Bureau was designated Executive Vice-Chairman.
    Throughout the life of the Commission, Bureau staff worked closely with and supplied background information, special studies, and technical assistance to the seven committees which undertook basic factual reviews and formulation of recommendations for the Commission’s consideration. The Bureau provided editorial services in preparing “American Women” and committee reports for publication. It also responded to a large volume of inquiries as to the Commission’s work and findings.
    Providing similar research services and technical assistance, the Bureau served as the Secretariat to the Interdepartmental Committee and the
    217
    Advisory Council, which gave top priority to greater utilization of women in top government posts. The President assumed leadership in making the Federal Government a showcase for the employment of women and by June 1964 had announced appointment of 56 women to key positions. With his encouragement, Federal agencies and departments greatly accelerated the appointment and promotion of women in upper grade levels.
    A far-reaching effect of the interest generated by the Commission’s report was the establishment of Governors’ commissions on the status of women. These numbered 32 by the end of June 1964. They, too, were afforded the resources and services of the Bureau. Regional directors played a significant role in assisting in the establishment of these commissions and carried major Bureau responsibility in the States for working with the commissions once they were established. The Bureau Director, regional directors, and other staff members conferred with Governors, State labor commissioners, women’s organizations, trade unions, and other groups in States interested in the formation of commissions. Bureau officials and staff also met with many Governors’ commissions and, at their request, worked closely with their committees.
    The Interdepartmental Committee and the Citizens’ Advisory Council sponsored a conference of Governors’ commissions on the status of women in Washington, D.C., in June 1964. This meeting, the staff work for which was underaken by the Bureau, was attended by 83 delegates from 31 States. It provided for an exchange of ideas and discussion of common problems.
    The Bureau provided three series of publications which were of particular help to Governors’ commissions, as well as to other State agencies and organizations, because they presented information for each State separately: “The Legal Status of Women in the United States of America,” which details the civil and political status of women; “Labor Laws Affecting Women”; and reports on “Women Workers in 1960.”
    EQUAL PAY
    Prior to June 11, 1964, the effective date of the Equal Pay Act of 1963, the Bureau participated in development of Department policies for administration of the act and interpretation of its provisions. The Bureau helped plan a national equal pay conference, held in Washington on the effective date of the new law. Cosponsored by the Department of Labor and the National Committee for Equal Pay, the conference was attended by representatives of State labor commissions, women’s organizations, labor unions, and management groups. Women’s Bureau publications, including two new studies, “Action for Equal Pay,” a history of the equal pay movement, and “In the Federal Service—Equal Opportunity and Equal Pay,” were provided for conference kits.
    As part of its continuing program of technical assistance to States, the Division of Legislation and Standards, at the request of the Missouri De
    218
    partment of Labor and Industrial Relations, assisted with the preparation of rules and regulations for the administration of the State’s new equal pay law. The Division also laid plans for consultation with experts in the States for the redrafting of suggested language for a State equal pay bill.
    AID TO DISADVANTAGED
    The Bureau has always been deeply concerned with the problems of disadvantaged women and girls. Women workers are concentrated in low-wage trade and service occupations, which are generally not covered by the Federal Fair Labor Standards Act, and so constitute a large proportion of the “working poor.’’ For this reason the Bureau gave greater emphasis to its long-term program geared to the extension, improvement, and effective administration of State minimum wage laws.
    Continuing technical advisory services and materials were provided to concerned groups in Michigan, where a minimum wage law was passed for the first time. Assistance also was given to the Illinois Department of Labor in drawing up a minimum wage bill to be introduced in the 1965 session of the State legislature; to New Hampshire and South Dakota, where statutory rates were increased; and to a number of other jurisdictions in which a total of 35 wage orders were revised to increase minimum wage rates for women and minors.
    The Bureau participated with the Bureau of Labor Statistics in a new project to develop standards and guidelines for a cost-of-living budget for a self-supporting woman worker, which would provide basic, long-term assistance in State minimum wage administration. The Bureau also cooperated with the Bureau of Labor Standards in cosponsoring a conference of State minimum wage administrators in Washington, D.C., which provided opportunity for technical discussion of such subjects as standards, enforcement, and problems arising from concurrent State-Federal jurisdiction.
    Special attention was directed to the employment of disadvantaged girls. A pilot institute on improving training and employment opportunities for this group was cosponsored with the Bureau of Labor Standards, the Phyllis Wheatley YWCA, and the Citizenship Project of Howard University.
    Activities were continued to improve the status and working conditions of the 1.5 million women household workers who are disadvantaged by low wages, poor education, and lack of adequate protective legislation. The Bureau held a consultation with representatives of concerned private and Government organizations to explore household employment problems and to suggest means for improving the situation. A great scarcity of trained employees exists, while at the same time unemployed women are deterred from entering this field because of its lack of status. The Bureau is preparing guidelines for a suggested survey of employer and employee attitudes and problems in order to throw light on constructive courses of action.
    219
    Two papers on the impact of poverty on women were prepared: “Women in Poverty” and “Who are the Disadvantaged Girls 16-21 Years Old?”
    ECONOMIC STATUS
    An increase in the labor force of almost three-quarters of a million women, to a total of 25-5 million, brought increased demands for occupational information during the year. Two publications on women’s occupational opportunities were released by the Bureau: “Women Telephone Workers and Changing Technology” and “Job Horizons for College Women in the 1960’s.” Another publication, “Clerical Occupations for Women—Today and Tomorrow,” was in press at year’s end.
    Attention was focused on various aspects of women’s changing economic status in Bureau research studies and reports. An analytical bulletin entitled “Negro Women Workers in 1960” was issued along with a summary fact sheet, “Current Data on Nonwhite Women Workers.” Efforts were continued to encourage more day-care facilities for children of working mothers.
    Emphasis also was placed on the educational and counseling needs of girls. The Bureau held a consultation with national youth-serving organizations on the need to prepare young women for the dual role of homemaker and paid worker. Preliminary plans were made, in cooperation with the Office of Education, Department of Health, Education, and Welfare, to consult with six State directors of guidance on means to improve vocational counseling for girls and to hold subsequent conferences at regional and State levels.
    FIELD SERVICE
    Fiscal 1964 saw the establishment in Dallas, Tex., of the fifth regional office of the Women’s Bureau, making possible expanded field service in all regions. In addition to working with Governors’ commissions on the status of women, the regional directors also cooperated with State departments of labor and educational agencies, private educational institutions, voluntary labor and management groups, and a broad cross section of civic groups and women’s organizations, in projects related to programs of the Bureau and the Department of Labor. These included supportive action on minimum wage laws, enactment of equal pay legislation, and development of training projects for women in association with the Office of Manpower, Automation, and Training. Regional directors and members of the Washington staff served as speakers, discussion leaders, resource persons, and technical advisers for more than 150 conferences, conventions, and similar meetings. In addition, the Bureau cosponsored, with various State agencies, universities, and other groups, seven conferences on the status of women and the problems of working women.
    Expanded field service required increased informational services, including wide use of all media of communication.
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    INTERNATIONAL PROGRAMS
    Advances achieved in the United States in the status of women created interest in many parts of the world. “American Women” was translated into three languages, and a commission on the status of women was set up in Denmark. The Bureau received numerous requests for information and materials from abroad, including countries in Africa and Central America, and from Brazil, Germany, Fiji, and Malaysia, where the Chief of the Bureau’s International Division was asked to visit and advise on establishment of a women’s bureau.
    The International Division planned itineraries, arranged orientation sessions and individual interviews, and provided Bureau information for many foreign visitors.
    The Assistant Secretary for Labor Standards served as adviser to the International Labor Conference in Geneva. She was accompanied by the Chief of the Economic Status and Opportunities Division, who provided technical assistance.
    The Chief of the Legislation and Standards Division prepared the U.S. reply to the International Labor Organization’s Questionnaire on Employment of Women with Family Responsibilities and the U.S. position paper on “Women in a Changing World.” She served as alternate delegate and technical adviser at the United Nations Seminar on the Status of Women in Family Law, held in Bogota, Colombia. She prepared the U.S. working paper on significant aspects of U.S. State laws and practices and helped prepare a report of the seminar for the State Department Bulletin. She also provided technical advisory services for the U.S. representative on the U.N. Commission on the Status of Women.
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