[United States Department of Labor Fifty-Third Annual Report, Fiscal Year 1965]
[From the U.S. Government Publishing Office, www.gpo.gov]
SCIENCE £ INDUSTRY
JUL 22 1965
SAN DIEGO PUBLIC LIBRARY
Fifty - third Annual Report U.S. DEPARTMENT OF LABOR
Fiscal Year 1965
Fifty'third
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)
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UNITED STATES DEPARTMENT OF LABOR
Secretary of Labor.............................................. W. Willard Wirtz
Executive Assistant to the Secretary........................ Frank Erwin 1
Special Assistant to the Secretary for Economic Affairs.... Seymour L. Wolfbein 1 2
Special Assistant to the Secretary for Legislative Affairs. Samuel V. Merrick
Special Assistant to the Secretary......................... Arthur A. Chapin
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.................... D. Donald Glover 3
Assistant to the Under Secretary............................ Robert K. Salyers
Manpower Administrator........................................ Stanley H. Ruttenberg 4
Executive Officer........................................... Samuel Ganz
Deputy Administrator for Planning, Research, and Evaluation
and Director, Office of Manpower, Automation, and Training. Curtis C. Aller 5 Deputy Administrator for Operations and Administrator, Bu-
reau of Employment Security............................... Robert C. Goodwin
Administrator, Bureau of Apprenticeship and Training........ Hugh C. Murphy 6
Director, Neighborhood Youth Corps..........................Jack Howard 7
Assistant Secretary for Labor-Management Relations..............James J. Reynolds
Deputy Assistant Secretary..................................John Gentry, Acting 8
Administrator, Labor-Management Services Administration....... James J. Reynolds
Director, Office of Labor-Management and Welfare-Pension
Reports................................................... Frank M. Kleiler
Director, Office of Veterans’ Reemployment Rights...........Hugh W. Bradley
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
Assistant Secretary for Labor Standards.......................... Esther Peterson
Deputy Assistant Secretary................................... Morris Weisz
Director, Women’s Bureau..................................... Mary Dublin Keyserling
Director, Bureau of Labor Standards.......................... Nelson M. Bortz 9
Director, Bureau of Employees’ Compensation.................. Thomas A. Tinsley 10
Chairman, Employees’ Compensation Appeals Board.............. Theodore M. Schwartz
Assistant Secretary for Policy Planning and Research............. Daniel Patrick Moynihan
Deputy Assistant Secretary................................... Philip Arnow
Commissioner of Labor Statistics............................. Ewan Clague
Solicitor........................................................ Charles Donahue
Deputy Solicitor............................................. Edward Friedman 11
Assistant Secretary for Administration........................... Leo R. Werts
Deputy Assistant Secretary................................... V. S. Hudson
Assistant Assistant Secretary................................Edward J. McVeigh
Librarian.................................................. Margaret F. Brickett
1 Appointed May 23,1965.
a Appointed Feb. 28, 1965, from position of Deputy Administrator for Planning, Research, and Evaluation and Director, Office of Manpower, Automation, and Training.
3 Appointed Mar. 5,1965.
< Appointed Jan. 17, 1965, from position of Special Assistant to the Secretary for Economic Affairs.
5 Appointed May 15,1965.
9 Appointed Sept. 13,1964.
i Appointed Feb. 28,1965, from position of Special Assistant to the Under Secretary.
8 Appointed Sept. 6,1964.
’Appointed Sept. 6,1964, from position of Deputy Assistant Secretary for Labor-Management Relations.
i’ Appointed Feb. 19,1965. 11 Appointed Jan. 4, 1965.
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UNITED STATES DEPARTMENT OF LADOR ANNUAL REPORT, 1965
CONTENTS
Page
Report of the Secretary of Labor............................ 3
APPENDICES
Reports of the Office of the Secretary
Assistant Secretary for Administration................. 11
Director of Information, Publications, and Reports..... 17
Solicitor of Labor..................................... 19
Bureau Reports
Manpower Administration................................ 37
Bureau of Apprenticeship and Training............... 44
Bureau of Employment Security....................... 46
Neighborhood Youth Corps............................ 61
Office of Manpower, Automation, and Training........ 65
Labor-Management Services Administration............... 95
Office of Federal Employee-Management Relations... 96
Office of Labor-Management and Welfare-Pension Reports. 97
Office of Labor-Management Policy Development..... 103
Office of Veterans’ Reemployment Rights............ 104
Bureau of Employees’ Compensation....................... 109
Employees’ Compensation Appeals Board................... 125
Bureau of International Labor Affairs................. 129
Bureau of Labor Standards............................. I39
Bureau of Labor Statistics............................ 151
Wage and Hour and Public Contracts Divisions.......... 171
Women’s Bureau........................................ 217
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REPORT OF THE SECRETARY OF LABOR
Nineteen hundred and sixty-five was a dramatic year in the social and economic annals of the United States.
It was a year in which the Nation, armed with new statutory power to guarantee equal opportunity, proceeded with large-scale efforts to achieve equal results.
It was a year in which the Nation firmly resolved that no citizen should be denied the opportunity to share in the prosperity most take for granted.
As the economy thrust forward in the longest unbroken peacetime expansion in history, the American employment picture brightened substantially.
The economy produced the richest flow of goods and services in history and almost 2.5 million more citizens found jobs during the year.
The ranks of the unemployed dropped by 400,000, even though over 1 million more persons entered the labor force than the year before.
The jobless rate, which had stood at 7 percent in 1961, dropped below 5 percent and continued to move downward during the year.
But prosperity, as important a role as it played, was only partially responsible for the large progress made in 1965 to put more Americans to work.
Public programs, designed to upgrade the skills of an ever-growing number of people, were also proving, and quite conclusively, their value in eliminating joblessness.
In all these vital developments during this historic year, the Department of Labor played a major part in furthering the general welfare of American wage earners “to improve their working conditions, and to advance their opportunities for profitable employment.”
Under the Manpower Development and Training Act of 1962 and its subsequent amendments, the Department had launched comprehensive training programs to improve the employability of the Nation’s jobseekers. By 1965, the machinery of this far-reaching program was operating effectively to meet the shift toward higher skilled jobs resulting from technological change.
As the year progressed, and the Nation stepped up the pace of the war against poverty, increased attention was focused on the vital MDTA programs.
By the year’s end, 9,336 training projects, offering job-training opportunities to nearly 470,000 unemployed persons, had been approved under MDTA.
Under MDTA during fiscal 1965:
• Institutional programs (classroom instruction at existing vocational schools) covering over 160,000 men and women were approved.
• On-the-job training increased fourfold, with 94 percent of the trainees continuing on the job after the training was completed.
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Apprenticeship training also played a prominent role. During the year, 1,208 new apprenticeship programs were developed and 6,559 apprentices received certificates of completion.
To meet the job requirements and the needs of the unemployed, existing programs had to be intensified and continually readjusted.
This called for, in part, a comprehensive research program to insure the proper direction of various manpower programs.
With enactment of the Manpower Act of 1965, the role of the Office of Manpower, Automation, and Training—whose experimental projects help shape the Department’s manpower programs—became increasingly more vital.
Research programs of this Office enabled the Department to probe more deeply into the myriad problems of the jobless during fiscal 1965. Also, special studies were conducted to compare American retraining programs with those of other countries.
In February, President Johnson established a special job development program to develop 10,000 new employment opportunities a month. The economy, it was felt, could create job openings above and beyond those arising from the current industrial expansion. It could define and specify its unmet work needs— particularly in the service areas.
Along with the Department of Commerce, the Labor Department set about insuring a brighter employment picture through job development. Business rose to the challenge, and within 4 months the goal in creating jobs was being not merely met, but exceeded. In the month of June alone, 16,685 new opportunities for jobs were stimulated—jobs which could be filled by qualified MDTA trainees.
The intermeshing of Government agencies at all levels, in close cooperation with industry, labor, and private organizations, characterized much of the war on poverty.
The Economic Opportunity Act of 1964 gave to the Department of Labor responsibility for a Neighborhood Youth Corps.
School dropouts, unqualified by either education or training for jobs that required both, contributed strongly to the ranks of the unemployed. Since technological advances promised to raise, not lower, job requirements in the future, the chances of these dropouts for future careers were slim.
Youth unemployment was no small problem. In fiscal 1965, the labor force felt the impact of the postwar baby boom. Already, thousands of these boys and girls reaching the brink of adult life were out of school and looking for jobs. During the year, 236,000 more teenagers entered the work force than had the year before.
They were only the first wave. It was estimated that by 1970 the net increase in teenagers in the work force would amount to 1J4 million.
In general the economy thrived, fulfilling the wants and needs of this vast new consumer market; much of the Nation moved to the tempo and catered to the taste of the young.
But jobs were another matter. Unemployment for young people—24 and under—was running almost 3 times as high as that for the labor force as a whole.
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By sheer force of numbers, the problem of the school dropout became particularly acute, despite the fact that a lower percentage of youngsters were leaving school than they had previously.
Under MDTA, training programs had focused chiefly on the disadvantaged adult. A new program was now needed, not only for training the young, but to encourage dropouts and potential dropouts to complete their education.
The Neighborhood Youth Corps partially filled this need. It aimed at helping youngsters stay in or return to school by providing them with responsible jobs in their own communities. Its purpose supplemented that of the Job Corps of the Office of Economic Opportunity, which trained youths in special work-training camps away from home.
By enabling 16- to 21-year-olds to work in constructive tasks at hospitals, libraries, schools, playgrounds, various local and State offices, and in work with other nonprofit organizations in their own communities, the Neighborhood Youth Corps provided them a chance to earn money and receive work-training for better jobs, while furthering the well-being of their own hometowns. Part-time and full-time work was made available to those who wished to combine a work with a school schedule. Pay averaged $1.25 an hour; it provided, for many dropouts, the financial means to return to classes. Equally important, an NYC job was for most enrollees an introduction to both the discipline of work and the security of earning wages.
The first NYC project opened in Newark, NJ., in January. In short order, 700 out-of-school youths in that city were at work for up to 30 hours a week.
Other projects rapidly followed. By the end of the fiscal year, 639 Neighborhood Youth Corps projects had been approved to provide job opportunities across the Nation for 273,426 boys and girls.
Special counseling, testing, and job placement centers for young people were also established at State employment service sites. Forty of these Youth Opportunity Centers had focused on youths’ special problems by the end of the fiscal year. Sixty-eight more were approved, with at least one to be located in a large urban area of each State.
To staff the centers and also provide other public and private organizations with qualified youth counselors, the Department initiated special summer training courses at universities and colleges. Project CAUSE, as it was named, furnished 1,100 special counselors and counselors’ aides to Youth Opportunity Centers during the year.
Other departmental programs mobilized youths for work in agriculture. In Special A-TEAMS (Athletes in Temporary Employment as Agricultural Manpower), many American boys spent the summer working on the Nation’s farms.
At the same time, growers were encouraged to improve the living and working conditions of all domestic workers and provide them with adequate wages.
Enforcement of new and existing wage regulations concerned the Department’s Wage and Hour and Public Contracts Divisions. The Divisions’ responsibilities were particularly increased when on September 3, the minimum wage for an addi
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tional 3.6 million workers rose from $1 to $1.15 an hour, under Fair Labor Standards Act amendments. Maximum hours were reduced from 44 to 42 hours a week.
Nineteen hundred and sixty-four was the first full fiscal year covered by the Equal Pay Act. Underpayments of $156,200, affecting 960 persons, were brought to light.
Federal legislation had reaffirmed the equal rights of women to jobs and wages. In 1965, emphasis shifted to the State level. The Women’s Bureau aided significantly in advising Governors’ commissions on the status of women. There were 44 commissions established by the end of July 1965. For the first time, minimum wage laws were enacted in three States, equal pay laws in three States, and laws prohibiting discrimination in employment based on sex in five States and the District of Columbia.
The woman who had figured importantly in the early days of the Department— former Secretary of Labor Frances Perkins—made what was to be her last official appearance during the 30th anniversary celebration of the Bureau of Labor Standards. Labor Standards had been established under her leadership.
The Bureau’s continued insistence on safety regulations played a part in a 27 to 30 percent reduction in maritime injuries over a 5-year period, with the injury rate in longshoring dropping in 1964, for the first time, below 100 disabilities per million man-hours of work.
In the Federal service, Mission SAFETY-70, launched by the President in February, aimed at reducing injuries to Government employees 30 percent by 1970.
The Bureau of Labor Statistics also took a look into the future, with publication of projections of the labor force by age and sex to 1980. It also completed work on the 1966-67 “Occupational Outlook Handbook.” Special studies relating to timely issues included a review of the social and economic position of Negroes, special studies on manpower and productivity, studies of the older worker, and a review of collective bargaining agreements.
Unions and union elections continued to be a major interest of the Labor-Management Services Administration. Ninety-nine elections opened during the year, and 47 carried over from the previous year.
The Office of the Solicitor helped draft major pieces of legislation, including the Fair Labor Standards Amendments of 1965, a bill to repeal section 14(b) of the Taft-Hartley Act, Employment Security Amendments of 1965, the bill on common situs picketing, and the Manpower Development and Training Act amendments.
The Wage Appeals Board concluded its first full year with three out of five cases affirmed for action of the Solicitor, and one of these resulting in a reversal of ruling.
Deeply concerned with technological change in the United States, the Department of Labor also turned its attention to needs of the developing countries abroad. DOLITAC, the Department’s International Technical Assistance
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Corps, was established in a March agreement with the Agency for International Development.
Part of the Bureau of International Labor Affairs, DOLITAC provided AID and similar organizations with help in foreign manpower planning and administration, labor statistics, labor standards, labor-management relations, and labor ministry administration.
Elsewhere, ILAB specialists served on assignments in Africa, Latin America, Europe, the Near East, and the Far East. At home, the Department of Labor played host to some 600 foreign visitors, including 4 Ministers of Labor.
On all fronts, the Department of Labor focused on the individual requirements of individuals in need of jobs.
Never had the economy looked better. Still the Department armed against a future in which technological change showed no signs of slackening, applied itself to the long-range task of matching every man with suitable employment. The ideal of equal opportunity, now solidly written into the law and needing transformation into equal results, became the inspiration and driving force. Much has been accomplished. Much is left to do.
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OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION
As the principal administrative official of the Department, the Assistant Secretary for Administration is responsible for the administrative management programs of the Department. This responsibility includes budget preparation and presentation, financial control and audit, personnel staffing and control, provision of administrative services, library service, management analysis, and analysis and evaluation of the Department’s program objectives and goals. The Assistant Secretary is assisted by a Deputy Assistant Secretary for Administration who acts as the controller and an Assistant Assistant Secretary who serves as the Director of Personnel.
The Assistant Secretary represents the Department in all major administrative and management affairs, including relationships with the Bureau of the Budget and the Congress on appropriation matters.
During the fiscal year 1965, the Assistant Secretary gave particular emphasis to developing and implementing the program budget management system, improving all administrative management services, and executing the President’s directives on cost reduction.
BUDGET ADMINISTRATION
Guidance on budget matters is provided to all bureaus and offices of the Department. Overall responsibility is assumed for supervising and maintaining controls over departmental resources in terms of employment and fund availability.
Appropriations and other authorizations for the Department of Labor for fiscal year 1965 totaled $1.2 billion and provided for about 9,000 positions. Of this amount, $500 million was for normal administrative expenses, $200 million for unemployment compensation for Federal employees and ex-servicemen and injured Federal employees’ claims and expenses, and $500 million for grants to States for administrative costs of the public employment security programs (see table 1).
PROGRAM ANALYSIS AND EVALUATION
Review and analysis of departmental programs, which have long been functions of the Assistant Secretary, were this year established within a formal organization, the Office of Program Analysis and Evaluation. This office was created as a separate entity to intensify efforts to provide the Department with information on progress toward program goals and objectives and to give assistance in arriving at efficient and effective allocations of departmental resources.
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ORGANIZATION AND MANAGEMENT
Management analysis support is provided to improve the efficiency and effectiveness of the Department’s administrative management programs and to assure that the Department’s organizational structure remains viable and capable of accomplishing assigned programs.
The program budget management system, by means of which the Secretary and executives of the Department can weigh the relative merits of programs and their demands on manpower, funds, and other resources, was extended throughout the Department and applied to the budget proposal for fiscal year 1967. Providing for an organized approach to planning, programing, execution, review, and analysis, the system enables the Secretary and departmental officials to consider various alternatives to programs, project costs, and resource requirements for several years in advance; to identify programs which should be curtailed or eliminated; and to weigh benefits derived from the programs against total fund and resource requirements.
A revised policy for the field organization of Labor Department programs was established. The new policy provides that the programs will be established within common geographical boundaries with headquarters offices for each region being located in one city.
Manpower and support services were provided for several broad management studies and organizational realinements, including an interagency study of the administration of manpower development and training programs at the Federal, State, and local level, internal reviews of safety and health responsibilities, and the establishment within the Manpower Administration of a Neighborhood Youth Corps.
The management improvement and cost reduction program was revised and reestablished under policies and procedures which will make it fully responsive to the President’s program for increasing the efficiency and economy of operations. A major innovation provides for its full integration and coordination with the budgetary process. Other features include the identification, curtailment, or elimination of low priority programs; the searching out of less costly alternatives, procedures, or methods; and the establishment of savings goals, in terms of manpower and funds, in areas where savings are considered feasible without detriment to essential missions of the Department’s programs.
FINANCIAL MANAGEMENT
Accounting and auditing of expenditures of funds is provided for bureaus and offices of the Department.
Fiscal year 1965 saw significant progress toward accomplishment of the Department’s major financial management goals. All payroll operations of the Department were centralized and converted to computer operations. Centralization of all accounting operations of the Department and their conversion to computer operation were initiated and were scheduled for completion in fiscal year
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1966. A staff was established to conduct audits of financial management operations throughout the Department, to serve as the liaison point for all General Accounting Office audit reports, and to monitor the implementation of recommendations accepted by the Department. A departmentwide computerized accounting system was developed to reflect the requirements of the program budget management system.
PERSONNEL
Personnel management is a decentralized operation. Effective management is accomplished through policy guidance, technical assistance, and review and evaluation of administration and bureau personnel operations and service.
Greater emphasis was given during the year to improving the effectiveness of personnel policy guidance, program direction, and technical assistance provided to administrations, bureaus, and offices.
Significant progress was made in improving position management through more intensive evaluation of the need for the positions and the ways in which duties and responsibilities are organized and assigned among positions. Special attention was given to problems of grade escalation and to changes in average grade and grade distribution.
Steps were taken during the year to make the qualification requirements for jobs in the Department more flexible and more responsive to the current needs of management. Special efforts were directed toward qualifications required for positions in the programs for the disadvantaged. As part of this approach, a new occupation for manpower specialists has been defined with broader experience and education requirements. Similarly, social science training in place of the traditional economics background has been accepted for some jobs. Greater use has been made of authorities for making excepted appointments, such as under schedule B, to acquire employees with a wide variety of experience.
In its recruiting activities, the Department continued to emphasize the selection of highly qualified candidates. College recruiters sought students whose majors were appropriate to Department of Labor programs—economics and statistics— in visits to 66 colleges and universities throughout the country.
The Department conducted an intensive recruitment program to locate qualified, eligible minority group candidates to be considered for placement in all job classifications at all grade levels. Visits to over 30 predominandy Negro colleges and universities resulted in the placement at the entrance level of 24 qualified junior professionals. Intensive community contacts and executive recruiting resulted in additional placements of qualified candidates in professional positions above the entrance level.
The Department of Labor Board of U.S. Civil Service Examiners announced examinations and established registers for eight classes of positions in grades GS-9 through GS-15.
Several new utilization and development programs were established. Of these, the Management Work Conference, an 80-hour seminar program designed
792—672—66---2
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to improve managerial competence, contributed significantly to management improvement objectives. Twenty-three program managers (GS-15 and above), representing all of the major units in the Department, participated in the pilot program. The success of this program has led to a decision to repeat it three or four times a year in the future.
Employee-management relations activities included the granting of formal or exclusive recognition to employee organizations for 11 additional units. Five agreements were negotiated with unions representing units of field employees. Ten agreements providing for a voluntary dues-withholding program were signed with employee unions. An existing agreement providing for advisory arbitration of adverse actions for employees of the Washington, D.C., unit was formalized by a letter of understanding. Employee organizations representing a substantial proportion of the Department’s employees outside Washington, D.C., formed a council of local unions which was formally recognized at the national level.
ADMINISTRATIVE SERVICES
Support services are provided through centralized facilities to the extent greater efficiency can be achieved. Policy and guides are established to maintain effective control of services in both headquarters and field operations. Liaison is maintained with other governmental agencies exercising authority in this area.
The number of building locations in the Washington, D.C., area housing programs of the Department was reduced from 16 to 12. Related program units were placed in the same building wherever possible. In Los Angeles and Pittsburgh, similar consolidations of field offices into one building were also accomplished.
A comprehensive renovation of 65,000 square feet of below-ground-level space in the Department of Labor Building was completed. This former substandard storage-type area was converted to conference and training rooms to service all departmental activities, fully usable office-type space, and executive dining facilities to serve Department of Labor and Interstate Commerce Commission requirements.
A regional administrative services office was established in Atlanta, Ga., and final arrangements were made for opening offices in Kansas City, Mo., and Dallas, Tex. The regional administrative services office in San Francisco was expanded to provide personnel management services to Department of Labor field offices in that area and was redesignated as a regional administrative office.
The Division of Services and Supply increased its efforts to provide the greatest use of surplus and rehabilitated furniture and office equipment in keeping with the Department’s needs. Equipment with an acquisition value of approximately $160,000 was so utilized. The mechanics for maintaining a closer control on the removal of obsolete forms and publications from storage were further developed and implemented. Plans were completed for the initiation of a comprehensive mail management program for the Department.
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Additional computer planning was initiated during the fiscal year to meet anticipated increasing demands for data processing services. Progress continued in computerizing personnel records.
The Division of Printing and Reproduction produced 86,278,000 impressions over the 12-month period. It made significant improvements in the procedures for circularizing and using publications mailing lists, and realined duplicating operations to permit a more efficient production arrangement.
LIBRARY
Information pertaining to labor activities is provided in support of departmental activities. The activities of the Library accelerated sharply in response to growing demands from the Washington and field offices of the Department and the public. The staff answered 26,655 requests; 14,378 items listed on the weekly accessions list were sent out by special request.
The total circulation was 109,315. The cataloged collection increased by 12,905 volumes.
Table 1.—Appropriations and other authorizations, fiscal year 1965
Positions Amount
Salaries and expenses: Bureau of Labor Statistics _. _ 1,331 72 696 62 24 533 164 641 73 310 75 530 1,866 475 218 406 35 $18,542,000 881,500 1 399,460, 712 8,500, 000 344,000 5,722, 000 800,000 7,743,300 820,700 3,674,600 799,200 4,534,200 20,952,000 2 5,047,000 8 3,050,000
Bureau of International Labor Affairs.-. __ -
Manpower development and training activities
Area redevelopment activities —
Trade adjustment activities „ -
Bureau of Apprenticeship and Training ___
Mexican farm labor program, compliance activities - - ..
Labor-Management Services Administration -
Bureau of Veterans’ Reemployment Rights
Bureau of Labor Standards “. _ _
Women’s Bureau.. ... ... _ ...
Bureau of Employees’ Compensation
Wage and Hour and Public*Contracts Divisions
Office of the Solicitor __
Office of the Secretary __ .
Working Capital Fund . ...
Farm labor contractor registration activities _ 350,000 100,000
Special study on discrimination in employment because of age
Total, salaries and expenses from general funds _ _
7,511 481,321,212
Unemployment compensation for Federal employees and ex-servicemen
138,053,000 < 73,500,000
Employees’ compensation, claims and expenses.. _.
Total, benefit and claims from general funds
211,553,000
Trust fund authorizations: Bureau of Employment Security (salaries and expenses)
1,210 13,952,500 455,636, 000 800,000 62,100 136, 000 140, 000
Grants to States.. ... - . . _* ’
Reimbursement from Mexican farm labor supply fund (salaries and expenses) __ 160 7
Administration of longshoremen’s rehabilitation program.. _. ._
Office of the Solicitor .... “.
Office of the Secretary _ ._
Total, trust fund authorizations
1,377 470,726,600
Total, funds available ._
8,888 1,163,600,812
1 Includes $2,554,712 appropriation available from 1964.
2 Includes a $148,000 transfer from Office of the Secretary as directed by the Congress (Public Law 89-16).
8 Excludes a $148,000 transfer to Office of Solicitor as directed by the Congress (Public Law 89-16).
* Includes $20,850,000 financed by charge-back to Government agencies.
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Table 2.—Number of employees on the rolls of the Department of Labor as of June 30, 1965
Bureaus
Total
All bureaus----------------------------------
Office of the Secretary____________________
Office of the Solicitor____________________
Bureau of Labor Standards------------------
Wage and Hour and Public Contracts
Divisions________________________________
Bureau of Labor Statistics_________________
Women’s Bureau____________________
Bureau of Employees’ Compensation _ Bureau of International Labor Affairs.
Manpower Administration:
Office of Manpower Administrator----
Office of Financial and Management
Services---------------------------
Office of Manpower, Automation, and
Training___________________________
Neighborhood Youth Corps------------
Bureau of Apprenticeship and Training-
Bureau of Employment Security—------
Labor-Management Services Administration__________________________________
President’s Committee on Equal Employment Opportunity------------------------
National Commission on Technology, Automation, and Economic Progress-----------
9, 531 759 482
268
1,810 1,655
77 551 165
26
89
313 254 597
1,794
691
61
14
Full-time employees Other
Total D.C. Field Total D.C. Field
9,216 5,127 4,089 315 Ill 204
727 604 123 32 19 13
478 306 172 4 4
267 155 112 1 1
1,786 289 1,497 24 2 22
1,486 1,121 365 169 17 152
75 66 9 2 2
550 154 396 1 1
160 2 3 3
26 26
89 89
278 265 13 35 35
252 132 120 2 2
593 116 477 4 2 2
1,768 1,275 493 26 18 8
679 369 310 12 5 7
61 61
7 7 7 7
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OFFICE OF INFORMATION, PUBLICATIONS, AND REPORTS
The Office of Information, Publications, and Reports directs all informational activities of the Labor Department. It serves as the principal link between the Department and the public. Its function is to disseminate to the public socioeconomic data collected by the Department and to create a public understanding of Department policies and programs.
During the 1965 fiscal year, the Office issued 444 news releases and coordinated the Department’s relationship with the press, radio, television, and other communication media; answered thousands of inquiries from labor, business, and the public; and distributed weekly news packets to some 630 labor, 2,700 weekly, and 1,325 other press organizations; compiled and edited publications of departmentwide significance and reviewed those issued by the bureaus and offices for consistency with Department policy, objectives, and procedures.
The visual services division of the Office acted as visual consultant for all major departmental publications and other visual media. Special presentations, training charts, exhibits, posters, and television spot slide films were produced from several hundred miscellaneous idea roughs, publication layouts, and format designs. A permanent exhibit hall, depicting the history of labor and the Department and containing three dimensional replicas, full color transparencies of historic scenes, and historic mementos and artifacts, was completed.
Representatives of the Department emphasized before audiences of youths and adults the need for education and training to qualify for employment, and provided information to the public on a wide variety of subjects by participating in approximately 100 national conferences and conventions.
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OFFICE OF THE SOLICITOR
Each year finds the Department of Labor with an expanded role in programs to deal with problems of unemployment and job displacement, depressed areas and obsolete skills, decent wages, and safe working conditions. The Solicitor, as the chief legal officer of the Department as well as a policy official and adviser, is responsible for the legal aspects of the Department’s activities in these programs. He advises the Secretary, Under Secretary, and Assistant Secretaries and also performs many diversified types of legal services 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 his appearances before congressional committees.
In addition, 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 is also vested with final authority with respect to tort claims arising out of the Department’s activities.
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 continental United States and Puerto Rico, principally to carry out the litigation responsibilities of the Department.
LITIGATION DIVISION
As its title suggests, 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 labor standards legislation (Fair Labor Standards Act, including the Equal Pay Act, and Walsh-Healey Public Contracts Act), workmen’s compensation legislation (Federal Employees’ Compensation Act, Longshoremen’s and Harbor Workers’ Compensation Act, and District of Columbia Workmen’s Compensation Act, among others), and maritime safety legislation (Public Law 85-742, 72 Stat. 835).
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Labor Standards Litigation
One thousand four hundred and sixty-two cases were instituted this year under the Fair Labor Standards Act and Walsh-Healey Public Contracts Act. Of the 1,413 civil actions filed, 1,351 were brought under sections 16(c) or 17 of the Fair Labor Standards Act or section 2 of the Walsh-Healey Public Contracts Act, and 62 represented other civil actions. Criminal prosecutions were instituted in 25 cases and there were 24 new administrative proceedings before hearing examiners under the Walsh-Healey Public Contracts Act. One thousand four hundred eighty-two cases were closed with payment of back wages to employees being ordered or agreed to in 583 cases. Thirty-three criminal prosecutions and 67 contempt actions under the Fair Labor Standards Act were disposed of and 27 Walsh-Healey administrative proceedings were concluded. Fines obtained in criminal and contempt cases totaled $103,000. Restitution of back wages obtained through the efforts of the Office of the Solicitor during the fiscal year amounted to $4,283,456 under the Fair Labor Standards Act and $195,745 under the Walsh-Healey Public Contracts Act, for a total of $4,469,201, a new record high. One thousand four hundred and three permanent injunctions were obtained, 1,240 of them after contest.
As in 1963 and 1964, use of a demand for the restitution of back wages in injunction cases continued at a high level and with outstanding success. A substantial number of cases wherein it is hoped to obtain court interpretation of the Fair Labor Standards Act’s provisions relating to enterprise coverage were filed, along with the first of those arising under the new equal pay provisions.
During the fiscal year, 35 briefs were filed in appellate proceedings under the Fair Labor Standards Act and Walsh-Healey Public Contracts Act, 4 in the U.S. Supreme Court, 1 in a State appellate court, and the remainder in the U.S. courts of appeals for the various circuits. Fourteen decisions were handed down by the appellate courts. The Department’s position was sustained in 11 of these, rejected in 1, and upheld in part in the remaining 2. In addition, the Supreme Court granted two petitions for certiorari, one requested by the Department and the other unopposed. Two petitions for certiorari opposed by the Department were denied.
The two decisions which the Supreme Court will review deal with the Fair Labor Standards Act’s “retail establishment” exemption. One is Wirtz v. Steepleton General Tire Co., 330 F. 2d 804, in which the Sixth Circuit held last year that an employer selling tires and tire services to trucking companies, fleet operators, and Government agencies was entided to this exemption. In the other, Wirtz v. Idaho Sheet Metal Worlds, Inc., 335 F. 2d 952, the Ninth Circuit earlier this year ruled in the Department’s favor that a plant whose business consisted primarily of fabricating sheet metal equipment for processing and manufacturing companies was not an exempt “retail establishment.’ Because the issues in the two cases are closely related and together afford the opportunity to obtain authoritative clarification and guidance on the application of this exemption, the Department did not oppose the employer’s petition in the latter case.
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One of the cases in which the Department successfully opposed the granting of certiorari was Burton Mercantile & Gin Co., Inc. v. Wirtz, 332 F. 2d 414, wherein the Eighth Circuit had held that neither clerical employees of a cotton gin, nor those performing maintenance work during the dormant season, were within the exemption for employees “engaged in ginning of cotton.” The other case in which certiorari was denied was Wirtz v. International Harvester Co., 331 F. 2d 462, where the Fifth Circuit had agreed with our contention that an unfavorable decision in the district court was based upon instructions to the jury which did not accurately state the law applicable to the case. Like Steepleton and Idaho Sheet Metal, this case involves the “retail establishment” exemption.
At the appeals court level, the Department was successful in a number of important cases. In two of them, the Department obtained rulings contrary to prior adverse appellate precedents on the FLSA’s coverage. In Beneficial Finance Co. v. Wirtz, 346 F. 2d 340, the Seventh Circuit Court of Appeals, expressly disapproving the earlier decision of the Third Circuit in Mitchell v. Household Finance Corp., 208 F. 2d 667 (1953), held that branch office employees of a nationwide small loan company are engaged both in commerce and in the production of goods for commerce and are thus subject to the act. Similarly, declining to follow contrary holdings—in this instance decisions of the Sixth and Eighth Circuits—the court of appeals for the Fifth Circuit, in Wirtz v. Pepsi-Cola Bottling Co. of Augusta, Inc., 342 F. 2d 820, held that a bottling company’s route helpers are producing goods for commerce when picking up and returning to the plant empty bottles which are later refilled and distributed to both local and out-of-State outlets.
Among other coverage decisions were holdings of the Fifth and Fourth Circuits, respectively, that the act applies to maids cleaning areas where goods, 3 to 5 percent of which go out-of-State, are prepared for shipment (Nunns Battery & Electric Co. v. Wirtz, 335 F. 2d 599), and to employees preparing and mailing newsletters which their employer, an insurance broker, sent to both local and out-of-State recipients for promotional purposes (Wirtz v. Wardlaw, 339 F. 2d 785).
A number of successful actions related to the act’s enforcement procedures. In Wirtz v. Jones, 340 F. 2d 901, which dealt with the constitutional question whether an employer has a right to a jury trial in an injunction action where restitution of unlawfully withheld wages is sought as part of the requested equitable relief, the Fifth Circuit upheld the Department’s contention that there is no such right. Two other significant cases relating to enforcement procedures involved the scope of injunctions issued under the act. The Beneficial Finance Co. decision, supra, in addition to its coverage ruling, held that an injunction against future violations could properly be made applicable to all of the employer’s branch offices throughout the Nation, even though violations had actually been shown at only one office. And the Fifth Circuit, in Wirtz v. Ocala Gas Company, 336 F. 2d 236, held that where an injunction under this act is in terms applicable to all covered employees of a corporation, it applies to all operations of a successor corporation owned by the same parent corporation,
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including the successor’s expanded operations in a new city, and that contempt of court charges would lie for violations at the new location.
Another Fifth Circuit decision, Wirtz v. C&P Shoe Corp., 330 F. 2d 21, held that once the Secretary has instituted suit for back wages pursuant to an employee request under section 16(c) of the act, the employee does not thereafter have power to cause dismissal of the suit without the consent of the Secretary.
An important issue involving interpretation of the Walsh-Healey Public Contracts Act was before the Court of Appeals for the District of Columbia this year in Wirtz v. Barber-Colman Company, et al., 17 WH Cases 1, in which the district court had ruled that the Secretary’s authority under section 1(b) of the act to determine “the prevailing minimum wages” is limited to the determination of only a single minimum wage for all covered employees of a Government contractor, and that it does not permit determination of a different prevailing minimum for any occupational group or groups. The court of appeals declined to uphold the lower court’s adverse ruling on this issue, but left the question open and remanded the case to the district court to give the Secretary an opportunity to make additional findings and to take further evidence, if deemed necessary, to an adequately supported final determination for the machine tool industry, further holding that the determination, when supplied with the requisite findings, might be given retroactive effect.
Employees’ Compensation
This litigation concerns the dozen or more workmen’s compensation laws administered by the Bureau of Employees’ Compensation. These statutes provide benefits to employees or their families in the event of injury or death while in the performance of duty. Approximately 314 million workers benefit from the laws; of these, 214 million are employees of the Federal Government covered by the Federal Employees’ Compensation Act or its extensions, while 1 million are employees of private enterprise covered by the Longshoremen’s and Harbor Workers’ Compensation Act or its extensions.
With respect to claims of nongovernment employees covered under the Longshoremen’s Act and its extensions, the Litigation Division actively participates with the Department of Justice in defending administrative adjudications of the Bureau’s Deputy Commissioners in the courts. A 40 percent increase in such cases has occurred in the last 2 fiscal years with a total of 82 being handled in fiscal 1965.
Significant this year was the decision in which the Supreme Court, on petition for certiorari, upheld the Deputy Commissioner’s award for injuries sustained by workmen while engaged in recreational activities at remote defense base areas (Smith, Hinchman & Grylls Associates, Inc., et al. v. William M. O Keeffe, 380 U.S. 359). In two similar cases upholding such awards, the Supreme Court denied certiorari (Pan American World Airways, Inc., et al. v. William M. O’Keeffe, 338 F. 2d 319 (C.A. 5, 1964), cert. den. 380 U.S. 951; Pan American
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World Airways, Inc., et al. v. Stephen O’Hearne, 335 F. 2d 70 (C.A. 4, 1964), cert. den. 380 U.S. 950).
In addition to matters in the Federal courts, the Division defends the Bureau’s administrative actions before the Federal Employees’ Compensation Appeals Board. In fiscal 1965, there were 317 such cases.
Another important function of the Division is advising and supervising the prosecution of private damage claims against persons responsible for the injury of Government employees. This is done both to benefit the injured employee and also to secure maximum reimbursement to the Government from the proceeds of recoveries. The Federal Employees’ Compensation Act provides for such reimbursement for medical expenses incurred on behalf of, and compensation benefits paid to, the injured employee. Gross recoveries on such claims during fiscal 1965 totaled $4,413,873.85. After deducting expenses of recovery, a net of $3,161,562.59 remained available for offset against compensation paid or payable by the United States to its employees or their dependents. Both of these figures set new records in fiscal 1965. From the net recoveries, reimbursement of $850,021.04 in cash was made to the Government, and $87,375.99 was allowed as credit for medical bills paid. Thus, the total immediate benefit to the United States was $937,397.03. The remainder of the net recovery is available for credit against future liabilities upon the same claims. The Bureau of Employees’ Compensation estimates that the total actual benefit to Government from third-party recoveries from reimbursement and credit against future liability amounts to between $1.5 million to $2.0 million annually.
Maritime Safety Standards
The Division also furnished legal services to the Bureau of Labor Standards in the enforcement of its maritime safety program under the Longshoremen’s and Harbor Workers’ Compensation Act. During the current fiscal year, five cases charging violations were brought before hearing examiners. Cease-and-desist orders were issued in four cases. One criminal case was filed in which fines totaling $6,000 were imposed.
INTERPRETATIONS AND OPINIONS
The Division of Interpretations and Opinions renders legal services primarily in the form of written and oral opinions, to the various operating bureaus of the Department of Labor, to the field offices, and to the general public. These opinions express the position of the Department and are used as a basis for enforcement activities. Opinions are given in the area of labor standards under the Fair Labor Standards Act, Equal Pay Act of 1963, Contract Work Hours Standards Act, Walsh-Healey Public Contracts Act, and Davis-Bacon Act. They are given also in the area of manpower services and veterans’ reemployment rights. The Federal Employees’ Act, Longshoremen’s and Harbor Workers’ Compensation Act, unemployment compensation statutes, and Defense Base Act
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also account for a great many opinions. The vast majority of interpretative opinions rendered in the labor standards area pertained to the Fair Labor Standards Act, and with more workers being brought under the protection of this minimum wage law the services and workload of this activity of the Division is constantly increasing.
A record number of interpretations and opinions were issued or reviewed by the Division this fiscal year. These included legal questions considered and disposed of in proposed correspondence, legislative materials, contracts prepared, and other legal documents. The total in these areas exceeded 52,000 items.
In the veterans’ reemployment rights area, 491 legal opinions were prepared and reviewed, and 108 cases were referred to the Department of Justice for litigation. In the application of the Supreme Court s 1964 clarifications of certain basic principles involved in affording proper restoration to returning servicemen, significant results have been obtained and a substantial number of statutory claims voluntarily settled through negotiation and adjustment.
Documents published in the Federal Register pursuant to provisions of the Administrative Procedure Act and the Federal Register Act numbered 136 for the fiscal year, of which 61 provided new or amended provisions in the Code of Federal Regulations. One hundred and thirty-four minimum wage orders for industries in Puerto Rico and the Virgin Islands were prepared and published. A substantial number of changes and proposed changes in the safety and health codes established pursuant to the Longshoremen’s and Harbor Workers’ Compensation Act were also drafted and published. In addition, regulations were promulgated to put into effect title VI of the Civil Rights Act of 1964 concerning nondiscrimination in federally assisted programs of the Department of Labor.
Manpower service activities were expanded substantially by several new congressional enactments. Following the enactment of the Farm Labor Contractors Registration Act in September 1964, substantive, procedural, and interpretative regulations implementing its provisions were drafted, adopted, and incorporated into the Code of Federal Regulations. This act, which became law on January 1, 1965, also required the preparation of procedures and forms as well as the training of investigative personnel and the preparation of an investigator s manual. The statute, which involves the licensing of farm labor contractors who engage in certain activities relating to interstate agricultural employment, has entailed a substantial volume of opinions and interpretations in its early implementation.
In the enactment of the Economic Opportunity Act of 1964 which became law on August 20, 1964, Congress provided in title I-B for work-training programs—a responsibility delegated by the Office of Economic Opportunity to the Department of Labor. The Neighborhood Youth Corps, the organization designated by the Department to carry out this program, required substantial legal assistance, as a new client, in preparing regulations and disposing of the interpretative problems arising under the statute. The program involves the placement of youth in work-training situations through contracts between the Neighborhood Youth Corps and public or private nonprofit organizations. Standard form contracts with general provisions consistent with the Federal
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procurement regulations were prepared and many interpretative problems encountered in the negotiation and execution of the many individual contracts entered into.
The enactment by the Congress of the Civil Rights Act of 1964 required the preparation of departmental regulations under title VI. These regulations, prohibiting Federal financial assistance in any program which is administered in a discriminatory fashion based on race, color, or national origin, were prepared in collaboration with the Department of Justice and approved by the President. A substantial number of interpretative problems have arisen in connection with the application of the regulations to the numerous grant and contract programs of the Bureau of Employment Security, Bureau of Apprenticeship and Training, Office of Manpower, Automation, and Training, and Neighborhood Youth Corps.
The expiration of Public Law 78 on December 30, 1964, which provided the authority for the operation of the Mexican labor program, shifted the emphasis for the admission of foreign workers to certain provisions of the Immigration and Nationality Act. A number of legal problems arose involving the construction of the Immigration and Nationality Act and departmental regulations promulgated thereunder to provide reasonable recruitment efforts and maximum safeguards for the American work force as conditions to the admission of foreign workers. The departmental emphasis on an intensive recruitment program to provide American workers to meet the agricultural labor needs in place of former reliance on Mexican nationals also required preparing regulations and sample form contracts and participating in various hearings and litigations. In the Chase-Glades farm case (not yet reported), suit was brought by farmers in Florida to compel the Secretary of Labor and the Attorney General to extend the stay of certain British West Indies workers. The Division participated actively in defending the Government’s position, and the farmers’ request for an injunction was denied.
The extension and amendment of the Manpower Development and Training Act also required preparing regulation amendments, numerous Manpower Administration orders, and a new regulation to accomplish the transfer of training formerly authorized under the Area Redevelopment Act. The expanded scope of the programs authorized by these amendments, as well as the increased allowances and more liberal terms of eligibility, has presented numerous interpretative problems and required the continued preparation of training contracts, experimental and demonstration contracts, research contracts, and labor mobility demonstration contracts.
The Division assisted in the development of the worker assistance provisions of the proposed Automotive Products Trade Act of 1965, which was introduced to implement the agreement of January 16, 1965, between the Governments of the United States and Canada concerning automotive products.
The Division issued interpretations of the trade adjustment allowance provisions of the Trade Expansion Act of 1962 and participated in training sessions
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with personnel of the Bureau of Employment Security and State agencies regarding such provisions.
The Division reviewed and commented on State proposals and enactments in 48 States in the employment security area. Advice was given as to whether such proposals and enactments met the requirements of Federal law.
WAGE DETERMINATIONS
The administration of the Davis-Bacon Act, including the Fringe Benefits Amendment of 1964 and its related prevailing wage statutes, the Copeland Act, the Contract Work Hours Standards Act, and Reorganization Plan No. 14 of 1950, is vested in the Division of Wage Determinations. The Division’s Branch of Wage Determinations determines minimum wages and fringe benefits on Federal and federally assisted construction to be paid laborers and mechanics under 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.
During the year, procedures pertaining to the administration of the Davis-Bacon Act and related labor statutes were improved, the Wage Appeals Board concluded its first full year of operations, and the fringe benefits amendment to the Davis-Bacon Act became effective. Significant among the changes to improve the administration of the Davis-Bacon Act during the year were:
• The use of the multi-agency area determination, which generally includes wage rates and job classifications for all types of construction, has gained wide acceptance and has been expanded to cover 220 areas.
• Pursuant to the fringe benefits amendment which became effective July 2, 1964, fringe benefits were included in determinations for 84 areas on September 30, 1964, followed by the inclusion of benefits by States in an orderly manner. The inclusion of all States was completed on schedule June 30, 1965.
• Five cases have been considered by the Labor Department’s Wage Appeals Board. One appeal was found to be untimely, three cases affirmed the action of the Solicitor, and one case resulted in a reversal of the Solicitor’s ruling. Four of the cases were appeals from wage determinations and the other involved coverage of the act.
• A concerted effort was made to contact employer and labor groups and State and local agencies in areas in which difficulties have been experienced in securing wage payment information. Informational meetings were held to discuss coverage and proper application of the Davis-Bacon Act and related acts, the revised regulations, and the fringe benefits amendment. Much emphasis has been placed on the need for all groups to provide factual and usable wage payment information to the Division.
• On-site wage payment surveys have been employed on an expanded basis in areas where wage payment evidence was contradictory or unsatisfactory.
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@ Procurement agencies have been assisted in updating their labor manuals to reflect changes caused by the revised regulations and fringe benefits. Consultations have been held with interested contracting agencies to refine and improve the form of the semiannual report on compliance and enforcement.
• The Enforcement Branch has assisted agencies in completing and closing cases which are 2 or more years old. Members of the staff have attended meetings with enforcement officers of various agencies to discuss application of compliance and enforcement procedures.
Two proposals were enacted during the year which contain Davis-Bacon provisions to be administered by the Division: Elementary and Secondary Education Act of 1965 and the Appalachian Regional Development Act of 1965.
The Branch of Wage Determinations issued 25,408 determinations during the fiscal year. In all, 33,721 items of correspondence were issued in connection with these determinations.
The Branch of Coordination and Enforcement opened 1,058 enforcement cases. A total of 1,275 cases were processed to completion. In cases involving serious violations of the various statutes within the scope of Reorganization Plan No. 14, ineligibility sanctions were imposed against 24 contractors responsible for such violations. As a result of enforcement actions, restitution totaling $447,392.14 was secured for 3,503 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 required for the interpretation and administration of these statutes to the Office of Labor-Management and Welfare-Pension Reports (LMWP) in the Labor-Management Services Administration.
In fiscal 1965, the Division analyzed and considered 316 cases involving the Labor-Management Reporting and Disclosure Act for possible civil or criminal litigation. After analysis, 22 civil actions were instituted in the Federal district courts, and 69 cases were transmitted to the Department of Justice for criminal prosecution. During the same period, the Division analyzed eight cases involving the Welfare and Pension Plans Disclosure Act to determine whether enforcement action was necessary.
Of the 22 civil actions instituted under the LMRDA, 12 involved title IV, relating to the conduct of labor organization elections. Thirteen election cases, including 11 which were instituted prior to the beginning of fiscal 1965, were favorably concluded with the entry of court orders directing the conduct of new elections under the supervision of the Secretary. In several of these cases important and precedent-setting court decisions were handed down interpreting the provisions of title IV. In Wirtz v. Local 30, International Union of Operating Engineers, 242 F. Supp. 631 (1965), the court held that the defendant’s requirement that prospective candidates for union office must file a “declaration
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of candidacy” on or before January 15 to be eligible in an election to be held in June denied the members of Local 30 a reasonable opportunity to nominate candidates in violation of section 401(e) of the LMRDA. The court also held that such requirement was an unreasonable qualification on the right of members to be candidates. However, after reviewing the evidence which showed that the complainants who had been wrongfully disqualified had been defeated in each of their previous attempts to seek union office, the court refused to set the challenged election aside, holding that the Government failed to sustain its burden of proof that the violations “may have affected the outcome of the election.” In Wirtz v. Local Union Nos. 9, 9A, and 9B, International Union of Operating Engineers, U.S.D.C., Colo., 58 LRRM 2250, 51 L.C. 19, 579 (1965), the defendant’s requirement that members must have paid their quarterly dues on or before their due date on each and every occasion during the year to be eligible as candidates was held to be an unreasonable qualification on the right of candidacy and therefore null and void under section 401(e) of the act. The court noted that such requirement, rather than being designed to limit candidates to persons who are intensely interested in union activities, worked an undue hardship on the members and operated to exclude 87 percent of the members from being eligible to hold union office. The court also held that the scope of relief which the Secretary can secure in an action under section 402(b) is limited to the specific matters complained about by the union member. This case is on appeal to the Court of Appeals for the Tenth Circuit. A contrary conclusion was reached in Wirtz v. Local Union 169, International Hod Carriers, Building and Common Laborers’ Union, U.S.D.C., Nevada, 59 LRRM 2286, 51 L.C. 19, 715 (1965), wherein the court held that it was not the intention of the act, in view of the public interest involved, to limit the Secretary’s authority to investigate and challenge union elections solely to the precise complaints asserted by the protesting union member.
The authority of the Secretary to institute an election challenge beyond the 60-day period set forth in section 402(b) was upheld in two cases in which the court rejected the defendants’ assertion that the 60-day period was absolute and held that the Secretary was not required to file his complaint within 60 days if the union delayed his investigation. The two cases are: Wirtz v. Great Labes District Local No. 47, International Organization of Masters, Mates and Pilots, U.S.D.C., N.D., Ohio, 240 F. Supp. 859 (1965), and Wirtz v. Local 560, International Brotherhood of Teamsters, U.S.D.C., N.J., Civil Action No. 471-63 (1965).
In Local 57, International Union of Operating Engineers n. Wirtz, 346 F. 2d 552 (C.A. 1, 1965), and Wirtz v. Edmonds, U.S.D.C., Colo., 58 LRRM 2695, 51 L.C. 19, 573 (1965), the courts concluded that the Secretary had authority to investigate union elections and to disclose his findings under section 601 of the LMRDA and that such authority was not dependent on the filing of a member’s complaint under section 402(a). This principle was of particular significance in the investigation of the 1964 election of the International Union of Electrical, Radio and Machine Workers, AFL-CIO, in which the ballots
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were subpenaed and recounted by LMWP. As a direct result of the investigation, which exposed a miscount by the union’s election officials, and of the publication of the investigation findings, the announced winner resigned and the actual winner was installed as president.
The authority of the Secretary to conduct investigations and to issue subpenas in aid thereof was also at issue in International Brotherhood of Teamsters n. Wirtz, 346 F. 2d 827 (C.A. D.C., 1965). There the union refused to honor a subpena on the ground that the Secretary had no authority to investigate possible violations of section 501 since he had no enforcement powers concerning that section. Rejecting this argument, the court of appeals upheld the Secretary’s authority and also held that he could not be limited as to those persons to whom he could disclose the results of his investigation.
The Division also participated in six defensive actions brought against the Secretary in the Federal courts. Two of these cases resulted in judgments for the Government. In Douglas v. Wirtz, U.S.D.C., M.D. N.C., 232 F. Supp. 348 (1964), the Federal district court held that section 203(c) exempts consultants from including in their reports required under section 203(b) receipts and disbursements made in connection with activities otherwise not reportable. A contrary result was reached in Price v. Wirtz, U.S.D.C., N.D. Tex., 58 LRRM 2607 (1965). In the Price case, the court ordered the consultant to file complete financial reports as required by section 203(b), including not only the receipts and disbursements made in connection with reportable activities but also receipts and disbursements made in connection with the performance of all labor relations services for all employers. In another case involving the provisions of section 203(b), the court held that sections 203(c) and 204 exempt attorneys from the reporting requirements of section 203(b) when they undertake activities in representing clients before a court or administrative agency or in collective bargaining even though such activities had as an object the persuasion of employees or the supplying of information to the employers concerning the employee activities. The court, in Fowler v. Wirtz, U.S.D.C. S.D. Fla., 236 F. Supp. 22 (1964), held that where such persons act openly and have fully disclosed their clients’ names and the purpose of the activities, the act does not apply. Appeals are pending in each of these cases.
The Division participated in three hearings before the U.S. Board of Parole wherein certificates of exemption from the prohibitory provisions of section 504 of the LMRDA were being sought. Certificates were denied in two cases. In the third, the Board, concluding that parole was not included in the term “imprisonment,” held that the applicant no longer needed a certificate, since he had been on parole for over 5 years. The Supreme Court in U.S. v. Brown, 381 U.S. 437 (1965), declared unconstitutional that part of section 504 which imposed criminal sanctions on Communist Party members who held union office.
Two hundred private actions involving the LMRDA were reviewed to determine what effect such suits might have on the responsibilities of the Department. As a result of this review, the Government intervened in or otherwise participated in five cases and filed briefs amicus curiae in two cases before the
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Supreme Court, Calhoon v. Harvey, 379 U.S. 134 (1964), and American Federation of Musicians v. Wittstein, 379 U.S. 171 (1964). In Calhoon, the Supreme Court held that section 402 provided the exclusive remedy for challenging the reasonableness of qualifications on the right of candidacy.
In the area of welfare and pension plans, a basic departmental position was endorsed in the case of Wirtz v. Gulf Oil Corporation, U.S.D.C., E.D. Pa., 239 F. Supp. 483, wherein it was held that a group hospitalization and medical-surgical expense insurance program established by Gulf Oil was an “employee welfare benefit plan” and that the company was the plan “administrator” under the WPPDA, although there existed a contractual relationship between each employee and the plan insurer, with Gulf Oil acting primarily as remitting agent for premiums.
The Division also provided extensive legal assistance during the year to LMWP in the preparation of regulations, reporting forms, and various technical assistance aids and other publications. Under the LMRDA, this included promulgation of the “Procedure for Removal of Local Labor Organization Officers,” issued pursuant to sections 401 (i) and 402(b), and preparation and publication in the Federal Register of proposed “Supervision of Election of Officers” regulations, pursuant to section 402(b). Regulations issued under the WPPDA include a proposal to amend Form D-2 to provide for more comprehensive and meaningful disclosure.
The Division rendered approximately 3,122 written opinions under the LMRDA and approximately 2,790 under the WPPDA.
During the past year, a member of the Division, as a representative of the Secretary, spent 2 months auditing the proceedings of the tellers of the United Steelworkers of America in hearing protests filed by its members complaining about the conduct of its election of officers. It is believed that such participation played an important role in the amicable resolution of the election issues.
LEGISLATION
Assignments in the Division of Legislation are as diverse as the many-faceted programs of all the bureaus of the Department. Nevertheless, the Division’s functions are channeled primarily through legislation, labor-management relations, hearings, decision writing, and research.
The preparation of legislative proposals and other legislative materials in the Division complemented the accelerated pace of the Administration’s overall legislative program. The President’s labor message to the Congress foreshadowed the direction and urgency of the increased effort—extending minimum wage protection, repeal of section 14(b) of Taft-Hartley, and improvement and modernization of the Federal-State unemployment compensation system.
The Manpower Development and Training Act amendments administered by the Labor Department were drafted by the Division’s staff, which also prepared the Secretary’s testimony in support of the measure.
The Division of Legislation provided legal assistance to the Secretary’s task force of Government and non-Government unemployment compensation experts.
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After completing its study, the task force made recommendations to the Secretary which provided a basis for the Employment Security Amendments of 1965—drafted in the Division. The Secretary’s testimony in support of the proposal was also prepared in the Division.
The Division provided legal advice and assistance to the Secretary in connection with his appearances before congressional committees in support of the Administration’s proposals to repeal section 14(b) of the Taft-Hartley Act and to extend the coverage of the Fair Labor Standards Act, and in support of legislation to permit common situs construction picketing.
Committees in both the House and Senate were assisted by the Division attorneys during congressional consideration of the proposals.
The Division furnished a variety of legal services, including the preparation of the Secretary’s order and the Manpower Administration order relating to organization and procedures for the implementation of title VI of the Civil Rights Act of 1964. In addition, it provided legal services in the administration of the Department’s nondiscrimination-in-apprenticeship program; participated in the preparation of the Government’s brief amicus before the U.S. Supreme Court in Amalgamated Meat Cutters v. Jewel Tea Company (33 LW 5425) (involving the application of anti-trust laws to labor organizations); and provided assistance to the President’s panel during the recent longshoremen dispute.
In cooperation with the Women’s Bureau and other offices, the Division made comprehensive analyses of title VII of the Civil Rights Act with respect to the employment of women. Division representatives led discussions of this subject in meetings and conferences of intergovernment and other groups exploring the application of title VII to economic opportunities for women.
The Division continued to collaborate with, and furnish special counsel and legal advice to, the Assistant Secretary, the Director of the Women’s Bureau, and other officials directing the activities of the Interdepartmental Committee on the Status of Women and to the Citizens’ Advisory Council of that Committee.
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.
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 departmental offices and bureaus not otherwise serviced and to prepare letters for the signature of departmental officials. During the year, the staff prepared 739 analyses, memoranda, and orders, 746 letters for the Secretary’s signature, and 2,782 letters for the signature of the Solicitor. 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, 37, involved alleged violations of the Walsh-Healey Public Contracts Act; and 24 decisions were rendered in these cases.
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The staff writes decisions for (1) the Employees’ Compensation Appeals Board in the administration of the Federal Employees’ Compensation Act, (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, and (3) the Director of the Bureau of Labor Standards on appeal from hearing examiners’ decisions on violations of safety regulations issued pursuant to the Longshoremen’s and Harbor Workers’ Compensation Act. It also provides a variety of other legal services with respect to problems arising under these statutes. A record 280 decisions were written during the year, and the backlog of 97 pending cases was the lowest in recent years.
During the past year, an attorney in the Division served as executive secretary to the Department’s Wage Appeals Board and provided other legal services as required.
Also during 1965, the staff was engaged in preparing a legislative history of the Farm Labor Contractor Registration Act of 1963; digests of key opinions rendered recently on the Walsh-Healey Act and the Federal Employees’ Compensation Act; and reports and miscellaneous legal documents.
INTERNATIONAL LABOR AFFAIRS
The Office of the Solicitor also provides legal services in connection with international responsibilities of the Department, primarily through or under the supervision of the Office of the Special Assistant to the Solicitor for International Affairs.
During fiscal year 1965, services were provided with respect to the International Labor Organization and other international economic problems and activities within the general responsibility of the Department’s Bureau of International Labor Affairs (ILAB).
Legal services pertaining to the International Labor Organization included reviewing and supervising preparation of law and practice reports, proposed executive branch position letters on various conventions and recommendations adopted by the ILO, and amendments to the ILO Constitution and other documents.
Legal advice and services pertaining to trade agreement and tariff matters were extended to the Department’s Committee on Foreign Economic Policy and the ILAB Division of Foreign Economic Policy, and in connection with the Department’s participation in the interagency committee structure under the Trade Expansion Act of 1962. The Office also took part in the review of proposed positions and reports on pending legislation dealing with various changes in U.S. tariff schedules and with other treatment of imports.
Considerable time was devoted to the Department’s participation in interagency activities relating to the drafting and presentation of proposed legislation to implement the United States-Canadian agreement, signed January 16, 1965, concerning automotive products and to authorize the implementation of future similar international agreements, if any. The United States-Canadian
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agreement provides for mutual elimination of duties on new motor vehicles and original automotive equipment to strengthen economic relations and to expand trade in such products between the two countries. Of special interest to the Department was the development of provisions in the legislation for determination and certification of eligibility of dislocated workers to apply for adjustment assistance in accordance with the Trade Expansion Act of 1962.
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MANPOWER ADMINISTRATION
Contents
Page
Summary report................................................. 39
Bureau of Apprenticeship and Training........................ 44
Equal employment promotion............................... 45
MDTA on-the-job training................................. 45
International activities................................. 46
Publications............................................. 46
Bureau of Employment Security................................ 46
U.S. Employment Service.................................. 47
New program developments............................. 47
Placement and related services....................... 49
Manpower development and analysis.................... 51
Farm labor service....................................... 52
Unemployment insurance................................... 55
Financing of State benefits.......................... 56
State legislation.................................... 56
Federal legislation.................................. 58
Training and other allowances........................ 58
Research and information............................. 60
Special activities....................................... 60
Neighborhood Youth Corps..................................... 61
Scope of projects........................................ 62
Enrollee data............................................ 63
Program development...................................... 64
Minority participation................................... 65
Office of Manpower, Automation, and Training................. 65
Amendments to the MDTA................................... 66
Research................................................. 67
Training................................................. 69
Information and communication............................ 72
National Manpower Advisory Committee..................... 72
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Page
Appendix tables:
1. Registered apprentices in training, new registrations, completions, and cancellations, 1941-65....................... 74
2. Estimated costs of approved on-the-job training Manpower Development and Training Act projects, July 1964-June 1965....................................................... 75
3. Selected employment service activities, U.S. totals for fiscal years 1956-65, by State for fiscal year 1965............... 76
4. Significant provisions in State unemployment insurance laws, June 30, 1965........................................ 77
5. Claims, beneficiaries, amount and duration of benefits under State programs, U.S. totals for fiscal years 1956-65, by State for fiscal year 1965....................................... 80
6. Subject employers, covered employment, and selected unemployment insurance financial data under State programs, U.S. totals for fiscal years 1956-65, by State for fiscal year 1965....................................................... 82
7. Selected data on unemployment compensation for Federal employees, U.S. totals for fiscal years 1956-65, by State for fiscal year 1965........................................... 84
8. Selected data on unemployment compensation for ex-servicemen, U.S. totals for October 1958-June 1959 and fiscal years 1960-65, by State for fiscal year 1965............... 86
9. Disqualifications under State programs, by issue, U.S. totals
for fiscal years 1956-65, by State for fiscal year 1965.. 87
10. Neighborhood Youth Corps projects, enrollees, and Federal cost, by month, through June 30, 1965....................... 89
11. Neighborhood Youth Corps projects, enrollees, and Federal cost, by State, as of June 30, 1965......................... 90
12. Activities conducted under the Manpower Development and Training Act, August 1962-June 1965..................... 91
13- Estimated costs of projects approved under the Manpower Development and Training Act, fiscal year 1965.............. 91
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MANPOWER ADMINISTRATION
The Manpower Administration oversees and directs the major Federal responsibilities assigned to the Department of Labor by legislation or directives by the Secretary of Labor for the development of human resources.
Four agencies engaged directly in the employment, improvement, training, or the welfare of the work force in the United States comprise the operating arms of the Manpower Administration.
They are the Bureau of Employment Security, Bureau of Apprenticeship and Training, Office of Manpower, Automation, and Training, and the Neighborhood Youth Corps.
In fiscal year 1965, a wide variety of programs and activities were undertaken, expanded, or continued by these units in applying the full impact of 14 legislative acts of the Congress, three Executive orders, and the Secretary of Labor’s regulations affecting equal employment opportunity.
The Manpower Administration directs the Department’s manpower programs and activities, including the functions to be performed by the Secretary of Labor, under:
• The Manpower Development and Training Act of 1962, as amended.
• The Neighborhood Youth Corps provisions of the Economic Opportunity Actof 1964 (title I-B).
• Training provisions of the Area Redevelopment Act of 1961.
• The employment security system of job placement and unemployment insurance under the Wagner-Peyser Act of 1933 and the Social Security Act of 1935.
• The equal opportunity and nondiscrimination provisions of title VI of the Civil Rights Act of 1964, and enforcement under Executive Order 10925, as amended by Executive Order 11114, in Department of Labor contracts and programs.
• Promotion and development of apprenticeship and training under the National Apprenticeship Act of 1937.
• Trade adjustment assistance provisions of the Trade Expansion Act of 1962.
• The Public Works Acceleration Act of 1962.
• The Employment Act of 1946.
• Title IV of the Servicemen’s Readjustment Act of 1944.
• Title V of the Agricultural Act of 1949, as amended, and the Migrant Labor Agreement of 1951, as amended.
• Civil defense and emergency planning functions for manpower utilization.
• The skilled worker provisions of the Immigration and Nationality Act of 1952.
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The year was highlighted by broad success in Federal efforts to train and retrain the unemployed and underemployed for occupations in great demand. It is significant that while the number of new entrants into the labor force increased by nearly 2.8 million, there were more than 400,000 fewer workers unemployed in June of 1965 than June of 1964.
Some of this success may be attributed to the overall training efforts developed under the provisions of the Manpower Development and Training Act of 1962, as amended. By the close of the 12-month period, training or retraining had been approved for 239,260 men and women, the great majority of whom were previously unemployed.
The largest number in this group, 160,542, were trained in local vocational school programs developed by the Bureau of Employment Security and the local State employment services in cooperation with local school boards.
Another 42,963 were trained on the job by employers and trade and labor organizations through the Bureau of Apprenticeship and Training.
The balance of 35,755 trainees were approved for experimental and demonstration training projects developed by the Office of Manpower, Automation, and Training during the year.
In the middle of the year, a special governmentwide effort to increase jobs and opportunities in all service-type and related occupations was announced by President Johnson to help the Nation take advantage of the rapid, above-average increase in such employment. In a 5-month period ending June 30, Manpower Development and Training Act institutional projects were developed for 19,000 unemployed persons; on-the-job training projects for about 8,000; experimental projects for 1,000; and Area Redevelopment Act projects for 1,600 trainees.
This effort in the service occupations and industries is continuing with a minimum goal of 10,000 trainees a month.
Perhaps most significant in the manpower program was the confidence voiced in it by the Congress through its extension, expansion, and liberalization, in April, of the Manpower Development and Training Act. The act, which has already provided training and retraining for hundreds of thousands of unemployed workers and which provides for a broad program of manpower research, was extended to run through June 1969.
The Congress also authorized these changes in the program: Expanded research activities, continuation of the job development program in the service and related occupations, more liberalized determination of trainee allowances, consolidation of Area Redevelopment Act training with MDTA training, permission for trainees to work at part-time jobs, and several other alterations in the original MDTA program.
Through the new amendments to the law, the Department of Labor estimates that by the end of fiscal year 1966, training projects will have been approved for 750,000 unemployed workers under the MDTA program. With the conclusion of fiscal year 1969, it is expected that this total will stand at 1,400,000.
One of the brightest accomplishments of the year was the immediate success of the newly organized Neighborhood Youth Corps and its work-training program,
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opening jobs and providing income for young men and women from low-income families. Even though this program did not reach its potential until the last quarter of the fiscal year, more than 278,400 youngsters between 16 and 21 had been enrolled.
Other major efforts for youth were successfully undertaken during the year through Youth Opportunity Centers and Apprenticeship Information Centers.
Youth Opportunity Centers, a novel concept to provide employment services to potential workers under 22 years of age, were opened in 40 large labor areas with an additional 68 awaiting funding.
Apprenticeship Information Centers, another successful innovation, helps inform the public on apprenticeship opportunities. Such centers have been opened in 9 large cities, with 15 more being planned. More than 3,000 persons, many from minority groups, were referred and accepted as apprentices through these centers.
The fiscal year’s accent on youth in manpower policy and planning also included a youth opportunity campaign in May and June. Private and public employers throughout the country were urged to hire as many young people for summer jobs as they possibly could. It is estimated that the campaign resulted in the creation of 820,000 new summer jobs for teenagers.
The Manpower Administration’s promotional and developmental efforts in the highly skilled apprenticeable occupations continued to pay dividends in fiscal 1965.
Eor the fourth year in succession, the number of apprentices in programs registered with the Bureau of Apprenticeship and Training or with State agencies increased over the previous year. More than 7,200 new apprentices were in training during the year, bringing the total in training to more than 170,500. More than 1,200 new apprenticeship programs were developed during the year. These increases reversed a 15-year downward trend in the numbers of apprentices being trained in the country.
The Federal Committee on Apprenticeship and the Manpower Administration are working closely to work out possible incentive plans to aid private industry in training more highly skilled craftsmen in the building trades and in the metalworking occupations. Purdue University was given the task of studying all aspects of the apprenticeship system in the United States to help define trends, clarify hiring and training practices, wages, and new skill demands dictated by a changing economy.
Very little of the Manpower Administration’s programs could have been accomplished without the Bureau of Employment Security’s U.S. Employment Service (USES) and the affiliated State employment services with their network of 1,900 local employment offices.
These local offices were the fulcrum for most of the training programs and the important task of matching workers and jobs.
The great majority of the trainees and workers placed in the MDTA, Neighborhood Youth Corps, Area Redevelopment Act, and Job Corps programs were placed through the U.S. Employment Service.
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Many of these trainees and workers were drawn from the 10.9 million new applications for work filed by jobseekers at local public employment offices during the fiscal year.
These offices made more than 6.3 million job placements during the year and another 6 million placements in farm occupations.
Regional offices of the Bureau approved thousands of work visas for aliens, helped place more than 1,400 teachers and principals for elementary and secondary schools overseas, and assisted more than 50,000 retiring military personnel to find work.
With the termination of the supplementary Mexican worker program under Public Law 78 on December 31, 1964, farm employers were faced with the need of replacing alien workers with domestic farmworkers. This resulted in a drop of 53 percent in the number of foreign workers on American farms, and massive efforts were made by the local employment service offices and the Labor Department to fill the gap. Through such programs as A-TEAMS (Athletes in Temporary Employment as Agricultural Manpower), Project Growth, Farm Employment Days, and summer farm jobs for college students, the needs of most of the Nation’s larger farms were met.
By June 30, fewer than 2,200 foreign workers were employed in agricultural work in the United States. Just a year before, 65,200 had been working in this country.
The Manpower Administration was deeply involved in the welfare of the unemployed during the year. As unemployment rates declined nationally from 5.3 percent to 4.7 percent, there were still more than 3 million people who needed assistance to obtain bread and butter.
The Federal-State unemployment insurance system provides for partial replacement of wages lost during periods of involuntary unemployment. Some 49 million workers in commerce, industry, and Government were covered under this system. Approximately $2.3 billion in benefits were paid out to some 5 million insured workers for 63.7 million weeks of unemployment. These benefits were $339 million under those of the previous year.
In most States, the weekly benefit represented about one-half of the weekly wage for those workers who qualified for less than the maximum benefit amount. In only 13 States, with 10.5 percent of the covered workers, did the maximum benefit represent 50 percent or more of average weekly wages.
Total State reserve funds to cover these benefits increased by 13 percent, generally reflecting the continued improvement in the Nation’s economy.
Cutting across all of the policies, deliberations, and programs under the aegis of the Manpower Administration in fiscal year 1965 was the concerted effort by Government, industry, and individuals to equalize opportunities for training and employment in the United States.
The operating Bureaus of Employment Security, Apprenticeship and Training, and the Neighborhood Youths Corps applied the provisions of title VI of the Civil Rights Act of 1964 which required all recipients of Federal financial or
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other assistance to provide all services without regard to race, color, creed, or national origin.
These provisions applied to all training contracts as well as to all State employment security agencies directly under the administration of the Bureau of Employment Security.
The Secretary of Labor’s regulations, issued under title 29, part 30, for nondiscrimination in apprenticeship programs, resulted in the inclusion of nonbias clauses in all programs approved under the registration procedures of both Federal and State agencies. All 28 States which have apprenticeship agencies have won approval of their operating plans. All apprentices must be selected and hired on the basis of qualifications alone under objective standards meeting the Secretary’s regulations.
While the provisions of title VII of the Civil Rights Act did not become effective until July 2, 1965, the Manpower Administration moved towards its immediate implementation during the closing months of the fiscal year. These provisions provide that all services of public employment offices be administered without regard to race, color, creed, sex, or national origin. They also apply to all apprenticeship programs, beginning with apprenticeship programs in organizations with more than 100 employees.
The combined effect of titles VI and VII and the Secretary’s regulations on discriminatory employment practices has been noteworthy although not broad in impact.
This lack of immediate scope has been attributed to the large numbers of minority group Americans who are unprepared to grasp new opportunities for employment or training because of poor educational foundations.
The Manpower Administration, in efforts to seek solutions to this basic problem, accelerated its broad and far-reaching program of manpower research during the fiscal year through the Office of Manpower, Automation, and Training. Research projects included an examination of the psychological makeup of disadvantaged, unemployed workers, special studies of the employment problems of older and younger workers, as well as European experiences with Government training activities.
Many of the results of these studies have already been incorporated in training and pretraining programs, such as the so-called “coupled” programs under MDTA. In these, trainees undergo several weeks of classroom preparation before they are moved to the on-the-job training site for actual training. Training avenues have been found for the mentally retarded, the physically handicapped, the prison convict, the juvenile delinquent, and many more.
All programs are moving ahead to help meet the national goal of full employment.
In the following pages, more detailed reports cover the activities of the four Manpower Administration agencies during fiscal year 1965.
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BUREAU OF APPRENTICESHIP AND TRAINING
The Bureau of Apprenticeship and Training, operating with a staff of 597 in 12 regional and 160 field offices throughout the United States, promotes and helps develop and improve programs of apprenticeship and other on-the-job training in all 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, United Nations, 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 with 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.
From about 230,000 to 255,000 men and women were in apprentice programs during the year. About 170,500 of these apprentices were in programs registered under Federal or State agencies.
During the year, the Bureau developed and installed in industry 1,208 new apprenticeship and 1,002 industrial training programs equaling about 8 million training weeks.
A total of 2,977 apprenticeship and training programs were examined for program content and adherence to Federal apprenticeship standards.
About 2,400 significant improvements in the organization, content, and administration of training programs were achieved through Bureau efforts.
Certificates of registration were issued to 1,150 programs; certificates of completion were awarded to 6,599 apprentices; and certificates of meritorious service were awarded 16 individuals.
National apprenticeship standards were revised and approved for sheet metal workers, carpenters, roofers, and plasterers. New standards were approved for barbers, dental technicians, auto mechanics, and electronic technicians.
One far-reaching action taken by the Bureau in 1965 was approval of a research program by Purdue University to study the extent to which apprenticeship programs for selected journeymen jobs are adjusting to current changes in technology and in the total scope of knowledge required of the crafts.
A variety of Bureau publications were used in promotional and informational activities and more than a half million pieces of literature were distributed.
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Bureau exhibits were displayed and representatives attended more than 50 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 have been in conformance with the regulations.
Examples of selection procedures were issued as guidelines to aid in compliance. Thirty State plans were reviewed and 25 were approved during the year. The remaining five States which have apprenticeship councils have submitted plans for review to the U.S. Department of Labor Equal Opportunity Review Committee.
There was continued emphasis during the year on promoting equal opportunities for all qualified persons for acceptance into apprenticeship programs. The Advisory Committee on Equal Opportunity in Apprenticeship and Training contributed materially to this program with the assistance of eight newly appointed industrial training advisers.
Four new apprenticeship information centers were established in Baltimore, Newark, Bridgeport, and Cleveland with the cooperation of the Bureau of Employment Security. There are now nine such centers. These centers provide counseling service and aptitude testing for youth and serve as channels for placement with cooperating labor and management organizations. A total of 1,029 individuals were channeled through the centers for employment as apprentices.
MDTA On-the-job Training
More than 43,000 unemployed and underemployed workers were approved for on-the-job training programs during fiscal year 1965 under the Manpower Development and Training Act. The Bureau negotiated and developed 1,785 contracts with employers, unions, employer associations, joint apprenticeship committees and city, State, and local governments to provide this training.
Training in more than 400 occupations was represented. Training costs were set at $22,122,352 to be paid from Federal funds. Nearly $40,000,000 in wages were scheduled for payment to trainees by employers under the contracts.
Eight State apprenticeship agencies with on-the-job training contracts, developed programs for approximately 7,200 trainees.
Eight national on-the-job training promotional contracts were executed. The largest single national contract was with the Hospital Research and Educational Trust for the development of programs in 300 hospitals for 4,000 trainees. Chrysler Motors Corporation provided training for 1,000 automobile mechanics and autobody repairmen in dealer agencies under a national contract.
The first community-wide on-the-job training contracts were negotiated during the year with the On-the-job Training Committee of the Chattanooga Full Employment Committee and the City of Detroit Special Youth Employment
792-672—66----4
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Project. These city organizations will develop training opportunities for unemployed persons through subcontracts with employers.
International Activities
Apprenticeship and training methods in 35 different industrial fields were observed by 56 labor and government officials from 21 foreign countries through itineraries developed and scheduled by the Bureau.
Forty-one participants completed training programs in the United States.
Four labor and technical teams representing Turkey, India, and Brazil completed special tours.
The Agency for International Development sponsored a 3-month tour of the Bureau’s Division Chief of Review and Registration for the purpose of assisting in the development of apprenticeship and training programs in four South American nations.
Publications
As a necessary tool for the promotion and development of on-the-job training programs under MDTA, the Manpower Administration produced an “Employer’s Guide to On-the-job Training Under the Manpower Development and Training Act.” A pocket-sized pamphlet, the publication explains the eligibility requirements for Federal assistance and the steps necessary to obtain this assistance.
The Bureau’s research division published “Tomorrow’s Pressmen,” a report on a joint labor-management project to increase and improve apprenticeship and journeyman training for pressmen.
BUREAU OF EMPLOYMENT SECURITY
The Manpower Administration carries out Federal responsibilities for programs closely allied with State employment security programs encompassing employment and related services for all workers—employed or unemployed, farm or nonfarm—and unemployment insurance services.
These responsibilities are carried out by the Bureau of Employment Security through three services—U.S. Employment Service (which includes a Veterans Employment Service), Office of Farm Labor Service, and Unemployment Insurance Service.
Specifically, the responsibilities of the Federal-State employment security system include:
1. Providing an effective employment service to help individuals find employment utilizing their highest capacities and skills.
2. Referring capable employees to employers and providing appropriate employment-related personnel services.
3. Helping workers develop their capacities and skills; working with educational and training authorities for manpower development, training, and utilization; and working with community groups for area economic development and stabilization.
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4. Providing an income-maintenance program, soundly financed, to replace a worker’s wage loss resulting from involuntary unemployment and, by maintaining purchasing power, contributing to the Nation’s economic growth.
5. Insuring that domestic farmworkers are given preference in employment and that use of any supplementary foreign workers does not affect adversely the wages and living and working condition of domestic workers similarly employed.
6. Assisting in development and utilization of civil manpower capability for meeting national emergencies and disaster needs.
7. Assisting other countries to improve methods for achieving employment security objectives.
In addition to these joint Federal-State responsibilities, the Bureau has certain overall responsibilities which include:
1. Review of State agency administrative operations, justification of appropriation requests, and audit of expenditures.
2. Analysis of State agency statistical reports on the operation of their programs.
3. Administration of Federal unemployment compensation programs covering separated employees of the Federal Government and ex-servicemen.
Administrative costs for operation of the employment security program are met from congressional appropriations (with basic program funds from taxes paid by employers under the Federal Unemployment Tax Act), with 100 percent grants being apportioned by the Secretary of Labor to cooperating State agencies.
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.
During the year, 10.9 million new applications for work were filed by jobseekers at local public employment offices, and those offices made more than 6.3 million nonagricultural placements and over 6 million farm placements.
New Program Developments
^Youth Services. For the first time, Youth Opportunity Centers (YOC’s) were opened to serve as focal points for Government and community efforts to aid youths under 22 years of age to become employable and to find suitable work. At the end of the year, 40 centers were in operation and 68 others were awaiting funds. Staffs of YOC’s cooperated with officials of other youth-serving programs, including those established under the Economic Opportunity Act, in planning youth services.
Under the President’s youth opportunity campaign, employers were urged to offer extra work and training opportunities during the summer to youth between 16 and 21. From late May, when the program became operational, to the end of June 1965, local employment service offices received 53,653 responses from employers, resulting in 469,103 job openings for youth, and received 1,631,248 responses from youth.
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In cooperation with the Selective Service System and the Defense Department, State employment services stationed personnel in 67 of the 73 examining stations of the Armed Forces to provide immediate employment counseling service to youths who failed to meet education or intelligence standards.
During the fiscal year, 74,000 selective service rejectees were given initial interviews; 37,000 received counseling; 12,200 were placed in jobs; and 2,000 were enrolled in training programs.
State employment service offices provided major assistance to the newly formed Neighborhood Youth Corps during the year, participating in about 550 out of 639 projects approved for the new program. A wide range of services— from counseling and testing of applicants to providing space for in-school projects—was provided. When the Neighborhood Youth Corps offered special disaster relief help in 6 States, the local employment services helped in recruiting 6,150 youth for this work.
Of 36,056 screened applicants requested by the Job Corps of the Office of Economic Opportunity, State employment services referred 32,114 and were working on the outstanding order for 3,942 at the end of the fiscal year. About 700 local employment service offices in 49 States were involved in screening candidates for referral to the Job Corps.
Labor Mobility Pilot Projects. The 1963 and 1965 amendments to the Manpower Development and Training Act required that the Secretary of Labor carry out a limited number of pilot projects for demonstrating the effectiveness in reducing unemployment “of programs to increase the mobility of unemployed workers by providing assistance to meet their relocation expenses.” Four million dollars was provided for such projects in fiscal 1965. Sixteen projects made up the initial program—11 to be conducted by State employment security agencies and 5 by private nonprofit organizations.
Job Vacancy Information. With the technical collaboration of the Bureau of Labor Statistics, the Manpower Administration conducted 2 experimental job vacancy surveys in each of 16 areas in fiscal 1965 to measure the extent and nature of unfilled jobs by occupation and industry. Approximately 80 percent of the more than 20,000 employers contacted returned completed questionnaires.
Cooperative Government Projects. U.S. Employment Service representatives worked with officials of the Departments of State and Justice concerning procedures for carrying out immigration responsibilities of the Secretary of Labor under the Immigration and Nationality Act. Specific geographic areas and occupations were identified in which aliens could not enter for employment. At the end of the fiscal year, 22 such area certifications were in effect, and importation of all aliens was prohibited for such occupations as sewing machine operators, nurse aides, secretaries, food workers in restaurants and hotels, and deep sea fishermen.
Regional offices of the Manpower Administration received 16,148 job offers to support visa requests from aliens in Mexico; they approved 3,224. Another 4,217 clearance orders were processed to support requests for permanent importation of aliens from quota countries; 3,597 were approved.
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In an advisory role to the Justice Department with respect to temporary importation of alien entertainers, 685 orders were received, representing 2,190 openings. Eighty-four percent of job orders were approved.
Agreements were signed under the Vocational Education Act of 1963 by State education authorities and State employment services in 53 States and territories. At the national level, the Manpower Administration arranged with the U.S. Office of Education for State employment services to supply meaningful occupational information to State vocational education agencies.
Placement and Related Services
Local employment service offices reported 6,330,000 nonfarm placements in fiscal year 1965—down 1.9 percent from the previous year. The January-June 1965 volume of placements, at 3,068, was up 1.6 percent from the corresponding period of 1964. Professional and managerial placements for the fiscal year, at 255,000, were up 2.4 percent. Manufacturing placements, at 1,423,500, were up 1.5 percent, with the increase concentrated in durables, particularly automobiles and related hard goods.
Nonfarm placements, by occupation and industry, fiscal years 1964 and 1965
Occupations and industries Fiscal year 1965 Fiscal year 1964 Percent change in 1965
Total 6,329,700 6,453,900 -1.9
By occupation:
Professional and managerial 255,100 249,100 +2.4
Clerical and sales _ 959, 900 994, 500 -3.5
Service 2, 031,500 2,093,800 -3.0
Skilled 321,300 358, 700 -10.4
Semiskilled 884, 700 862,900 +2.5
Unskilled . _ _ __ _ 1,877,200 1,894,900 -0.9
By industry:
Construction 435,000 460, 600 -5.5
M anufacturing 1,423, 500 1,403,100 +1.5
Public utilities 227,900 225,900 +0.9
Trade 1,447,100 1,522, 600 -5.0
Service 2,377,900 2,485, 600 -4.3
Government 255,200 201,500 +26.6
All other 163,100 154, 600 +5.5
Local offices reported 2,114,538 counseling interviews during fiscal 1965 and 1,247,368 applicants counseled—the seventh consecutive year in which the number of individuals counseled exceeded 1 million. Of those counseled, 793,043 were given the General Aptitude Test Battery for assessment of their potential abilities. In addition, 628,386 persons were given proficiency tests as an aid to placement, and 1,060,496 were tested with specific aptitude test batteries for selection purposes.
Youth. Local employment service offices reported 4,102,800 new applications from youth under 22 years of age, up 12.4 percent from fiscal 1964; 748,000 initial counseling interviews, up 8.3 percent; and 1,644,900 nonagricultural placements, up 7.2 percent from the previous year. As a result of the cooperative high school program, local offices registered 616,428 seniors during the 1964 school year, provided initial counseling interviews to 348,905 (56.6 percent) of the total graduating seniors registered at employment service offices, and reported
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117,703 nonagricultural placements. Thus, 16.3 percent of registered students were placed in employment. The number of dropouts placed in nonagricultural jobs through formal arrangements between the schools and local offices was reported to be 21,746—39.8 percent of the dropouts registered in formal programs of cooperation with the schools.
Professional and Managerial Personnel. Placements of professional and managerial personnel totaled 255,100, compared to 249,100 during fiscal year 1964. A nationwide effort was made to survey, analyze, and emphasize professional placements and to develop, through experimentation at the local office level, improved techniques for the professional placement process. Twenty-four professional associations, with total membership of about 363,000, were provided with convention placement service at their annual meetings—in fiscal year 1965 a 50 percent increase over the year in the number of groups served. Agreement was reached for a national registry service to be established at Chicago for the American Library Association and the American Economic Association. This service will be a prototype for similar service requested by other professional associations.
The labor inventory communications system (LINCS) is designed for use by local employment service offices in matching worker characteristics with job requirements for professional, managerial, scientific, and technical occupations. The system, consisting of 17 teletype stations in 11 States, completed its first year of operation in fiscal 1965.
The network connects offices in Sacramento, San Francisco, Oakland, San Jose, Van Nuys, Los Angeles, San Diego, Atlanta, Boston, Chicago, Dallas, Detroit, New York, Philadelphia, Phoenix, Seattle, and Washington, D.C. Long-range plans for the system are for it to encompass most occupations and to become a coast-to-coast network serving 56 metropolitan areas in 30 States.
Minority Groups. Title VI of the Civil Rights Act became effective July 2, 1964. State employment security agencies as recipients of Federal financial assistance are required by the act to provide all services without regard to race, color, creed, or national origin. Penalty for violation is withdrawal of grants. Title VII of the Civil Rights Act, which became effective July 2, 1965, provides that all services of public employment offices must be provided without regard to race, color, creed, sex, or national origin. The interrelationship of the two tides is obvious. The acts permits complainants under title VII to go to court to enforce its provisions.
The Civil Rights Act put into statutory language the nondiscrimination policy of the Manpower Administration for elimination of all segregated office facilities of State employment security agencies and for their adoption of revised merit system standards providing for employment on a nondiscriminatory basis. In each regional office the assistant regional administrator was made responsible for the civil rights program and was assigned a full-time professional assistant to work on civil rights matters.
Older Workers. Over 1,247,400 nonagricultural placements were made of workers age 45 and over, and more than 116,400 such applicants received counsel
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ing services. Of the nearly 238,000 trainees who were enrolled in institutional Manpower Development and Training Act courses since the beginning of such training in September 1962 through June 20, 1965, about 10.6 percent were 45 years of age and over.
Employer practices and attitudes affecting the hiring of older workers were studied in five cities (Baltimore, Indianapolis, Kansas City, Mo., Memphis, Salt Lake City).
Veterans. Veterans filed 1,197,200 applications for work at local employment offices, representing 18.9 percent of all new job applications filed by men; however, they obtained more than 25.4 percent of all nonfarm job placements for men. Disabled male veterans, representing 35.5 percent of the handicapped men who sought jobs through the public employment offices, were placed in 46.1 percent of the jobs filled by handicapped men.
During the year, the Veterans Employment Service of the U.S. Employment Service, in cooperation with the Department of Defense, assisted more than 50,000 retiring military personnel to obtain employment.
Handicapped Workers. In fiscal 1965, the number of handicapped applicants at public employment offices, 451,300, showed no change in percentage of total new applicants. Handicapped placements as a percentage of total placements remained constant, 278,200 or 4.4 percent.
Rehabilitated clients from vocational rehabilitation agencies accounted for about 6,000 of the placements of the handicapped for the same period. Placements of disabled veterans decreased from last year by about 4 percent.
Employer Services. Local employment service offices provided technical assistance to more than 7,000 employers in resolving or minimizing their problems of personnel selection, development, utilization, stabilization of work force, and personnel management. More than 1 million employers used the placement services.
Manpower Development and Analysis
Training Activities. About 2,425 Manpower Development and Training Act institutional projects to train 161,400 persons were approved. Allowance and training costs for these projects totaled nearly $250 million. Some 140,000 individuals enrolled in training during the fiscal year, and about 70,000 trainees completed training. More than 7 out of 10 trainees obtained employment, largely in training-related jobs.
By June 30, 1965, ARA training had been made available to eligible residents of 45 States, American Samoa, and Puerto Rico. During that fiscal year, close to 300 institutional projects to train over 10,000 persons were approved under the ARA program; over 9,500 individuals enrolled in training; about 7,500 completed training. Over three-fourths of the trainees obtained employment, mostly in training-related occupations.
Job Market Information. Of the 150 major areas which the Manpower Administration classifies monthly as to adequacy of labor supply, 21 in June 1965 were in categories reflecting substantial unemployment, as compared with 37 at the same period in 1964.
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Labor supply categories June 1965 June 1964 June 1963 June 1962 June 1961
Total, all groups (major areas) 150 150 150 150 150
A (overall labor shortage) 0 0 0 0 0
B (relatively low unemployment) 40 19 16 10 0
C (moderate unemployment) 89 94 95 89 62
D (substantial unemployment) 19 32 28 42 63
E (substantial unemployment) 0 3 9 6 17
F (substantial unemployment) 2 2 2 3 8
The Manpower Administration also identifies small and very small labor areas of “substantial” and “substantial and persistent” unemployment. A total of 545 areas, including 21 of the 150 major areas, were so classified in June 1965, as compared with 715 in June 1964.
These areas were eligible for preference in the award of Federal procurement contracts. From April through December 1964, defense prime contract awards to firms located in substantial unemployment areas totaled $3.7 billion, with $130.8 million in special “set aside” preference awards.
Areas of “substantial and persistent” unemployment 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.
Under the mass layoff reporting program involving groups of at least 100 workers, approximately 950 permanent layoffs involving some 311,600 workers, were reported since the system began in 1962.
Over half occurred at plants which discontinued operations. About 63 percent of the 950 layoffs were reported in advance of actual layoff. Local offices provided regular or special services to about one-third of the individuals concerned and worked with other groups in the community in employment development activities.
Smaller Communities Program. Under the smaller communities program, rural communities were helped to overcome employment problems caused by declining economics. Through use of mobile teams of interviewers, counselors, and community volunteers in 14 States, a determination was made of the county’s economic and current potential manpower resources. Assistance was given to local leaders in identifying economic development goals and in determining area training needs.
International Manpower Services. Employment service experience with manpower problems and programs to overcome them were shared with foreign technicians who visited offices of the Bureau and State employment services. Cooperation was also extended to the Organization for Economic Cooperation and Development in its study of employment services of member countries.
Farm Labor Service
Foreign Workers
With the termination of the supplementary Mexican worker program under Public Law 78 on December 31, 1964, farm employers were faced with the need of
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replacing alien workers with domestic farmworkers. During fiscal year 1965, when total seasonal agricultural employment rose 3 percent and domestic seasonal worker employment rose 9 percent, foreign seasonal worker employment dropped 53 percent. On June 30, 1965, fewer than 2,200 foreign workers were employed in the United States, as compared with 65,200 on the same date in 1964.
To carry out the intent of Congress in ending the Mexican farmworker program, each request placed with local employment service offices for temporary foreign agricultural workers was reviewed by the State employment service, Manpower Administration, and Office of the Secretary of Labor.
Special Federal-State agency recruitment teams sought new sources of seasonal domestic farm labor, and criteria for recruitment of interstate and foreign agricultural workers were revised to insure that employers seeking to import aliens would offer domestic workers adequate wages and living and working conditions, a work contract, and in some cases transportation.
During 1964, a total of 177,700 Mexican nationals were contracted under Public Law 78 for work in 17 States. Mexican employment constituted 7 percent of the total 8.5 million man-months of seasonal hired farm labor in that year. California growers contracted 63 percent of Mexican contract workers and the State led all others in their employment.
British West Indians were used mostly in Florida crops. Their peak employment rose from 14,900 in 1963 to 15,100 in 1964.
Employment of Canadian workers in U.S. agriculture, principally for Maine’s potato crop, dropped slightly from a high of 8,400 in 1963 to 7,800 in 1964. About 1,200 Japanese, 1,200 Basque sheepherders, and 120 Filipinos were also used in nonseasonal agricultural employment in the United States.
Since agricultural activities do not lend themselves to reporting on a fiscal year basis, the workload figures which follow are for calendar year 1964.
Domestic Farm Labor
Placement Services. Local employment service offices reported some 6,451,300 farm placements in calendar year 1964, about 11 percent fewer than the number in the previous year.
In farming areas located within commuting distance of population centers, day-hauls were used by many local offices to transport workers to and from job sites to meet short-term labor needs. Local offices operated day-haul programs in 554 towns and established day-hauls in 1,425 other towns. The “established” day-hauls were visited periodically to insure effective operation.
Day-haul programs specifically for youth were operated in 172 towns, and local offices established 927 other day-hauls at points which they visited periodically.
“Live-in” employment was another source of summer farm jobs for young people. Local offices placed 2,040 youths in farm jobs where they lived right on the farm.
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National publicity was given to recruitment of youth during the vacation period in A-TEAMS (Athletes in Temporary Employment as Agricultural Manpower). About 3,000 were placed in farm jobs before the end of the fiscal year.
Several hundred youth obtained farm jobs through “Project Growth,” designed to provide work-training experience for disadvantaged youth. Also placed in summer jobs were some 3,500 college youth.
“Farm employment days” provided a means at a central location for personal interviews between available workers in a local area and farmers seeking year-round farmworkers. Eighty-four local offices participating in this program held 621 “farm employment days.”
In small communities with a limited need for employment services, volunteer farm placement representatives brought together workers and job openings. In 1964, there were 2,632 such representatives in 23 States. Working without pay and in close cooperation with public employment service offices, these representatives referred 48,800 workers to farm and related jobs.
In 14 States, 37,400 farm placements were made for reservation Indians.
Employers in 15 States contracted 14,600 farmworkers from Puerto Rico. Puerto Ricans were used for the first time on the west coast—91 in Washington for the asparagus harvest and 70 in California for strawberries and mixed vegetables.
Migratory Farmworkers. The interstate recruitment regulations of the Secretary of Labor, implemented by the Bureau and State employment security agencies, are designed to improve housing, working conditions, and transportation of migrant farmworkers, and to determine wage rates prevailing in areas of employment.
Under the annual worker plan, employment service offices seek to provide consecutive seasonal farm jobs to migratory workers. In calendar year 1964, 10,300 groups were served, comprised of 133,000 adults. There were 47,800 children under 16 accompanying adults.
The Farm Labor Contractor Registration Act of 1963 became effective January 1, 1965. It is designed to benefit migrant workers by eliminating undesirable practices of some interstate farm labor contractors. The act requires a farm labor contractor (or crew leader) to register with the U.S. Department of Labor if he “recruits, solicits, hires, furnishes, or transports 10 or more migrant workers (excluding members of his immediate family) at any one time in any calendar year for interstate agricultural employment.”
Publicity to induce registration of an estimated 12,000 crew leaders produced only 1,777 applications by the end of the fiscal year. The principal reason for failure to respond was the inability of labor contractors to obtain the liability insurance required by the act. Of those applying for certification, only 870 met requirements.
In its consulting role to the Attorney General with respect to section 212(a) (14) of the Immigration and Nationality Act, the Department of Labor recommended approval of requests for admittance of 1,031 Mexican farmworkers to the United States for permanent employment.
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Farmworkers who were referred by local employment service offices from one area to another for employment, in response to interstate clearance orders, had to be paid wage rates no less than those prevailing in the area of employment.
To determine prevailing wage rates, 1,158 individual wage surveys were conducted by State employment security agencies, and 1,000 determinations and findings of prevailing wages were issued.
Farm labor representatives of the Bureau made 39,983 field inspections during calendar year 1964 to insure compliance with the Migrant Labor Agreement with Mexico, covering operations under Public Law 78, and the workers’ contract. They also investigated complaints and other matters related to the program.
Inspections were made of housing, food service, transportation, and payroll and general recordkeeping. Over 2,681 deficiencies were revealed and resolved.
Unemployment Insurance
The Federal-State unemployment insurance system provides for partial replacement of wages lost during periods of involuntary unemployment; helps to pay basic living expenses when workers are unemployed through no fault of their own; and by sustaining purchasing power, acts as a stabilizing influence on the economy.
During fiscal year 1965, some 49 million workers in commerce, industry, and Government were covered under the Federal-State unemployment insurance program. This total includes about 5,200,000 Federal civilian employees and members of the Armed Forces. Another 763,000 railroad workers were insured under a separate system administered by the Railroad Retirement Board.
Although the average insured unemployment rate dropped from 4 percent in fiscal year 1964 to 3.3 percent in fiscal year 1965, approximately $2.3 billion in benefits was paid out to some 5 million insured workers for 63.7 million weeks of unemployment. Those benefits were $339 million (13 percent) under those of the previous year.
Benefits are financed through payroll taxes under each State’s unemployment insurance law. In fiscal year 1965, slightly over 2.4 million employers paid about $3 billion in unemployment insurance taxes.
Beneficiaries under State unemployment insurance programs received an average weekly payment of $36.56. Average duration was 12.6 weeks for all beneficiaries and 21.6 weeks for those who exhausted their entitlement.
Benefits for unemployed Federal workers and ex-servicemen are financed through direct Federal appropriations but are paid to eligible claimants by State employment security agencies as agents of the U.S. Secretary of Labor. Approximately 254,500 unemployed Federal workers and ex-servicemen filed claims in fiscal year 1965 and received payments totaling $132 million. For Federal workers and ex-servicemen, the average weekly payment was $36.72; the average duration, 13.5 weeks.
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Financing of State Benefits
Financial developments during fiscal year 1965 generally reflected continued improvement in the Nation’s economy. Total State unemployment insurance reserve funds increased for the fourth successive fiscal year, by 13 percent, to $7.6 billion. This amount was 5.6 percent of taxable wages, or 3.2 percent of total wages, paid in covered employment for calendar year 1964. This improvement resulted from the substantial decrease in benefit payments, from $2.6 billion in fiscal year 1964 to $2.3 billion in fiscal 1965, and the continued high level of UI tax collections, totaling $3 billion. Interest earned on invested funds, the other main source of revenue, amounted to $244 million—$36 million more than the amount for the preceding fiscal year.
The Federal unemployment account is available for loans to States with low reserve funds. It is built up and maintained from any excess of Federal payroll tax receipts over the cost of State agency administration of the employment service and unemployment insurance programs. The balance in the account is limited to $550 million or 0.4 percent of the aggregate of the calendar year taxable wages of all States, whichever is greater. The cash balance in the Federal unemployment account was $153.8 million on June 30, 1965—nearly $69 million higher than the balance the year before.
State Legislation
Unemployment insurance legislative activity resulted in some significant enactments involving benefit and taxing provisions. Higher qualifying requirements were enacted in 5 States, and coverage provisions were changed in 13 States, with 2 of these changes being quite significant—New York expanded its coverage of domestic workers and South Dakota permitted political subdivisions to elect coverage.
Weekly Benefit Amount. Fifteen States increased the maximum weekly benefit by amounts ranging from $2 to $19.
Three States (Iowa, Maine, Rhode Island) provided for automatic adjustment of the maximum weekly benefit in accordance with changes in average wages.
Increases in the maximum benefit became effective in 11 other States that had previously adopted similar provisions for automatic adjustment of the maximum—Arkansas, Colorado, Idaho, District of Columbia, Kansas, North Dakota, South Carolina, Utah, Vermont, Wisconsin, and Wyoming.
At the end of fiscal year 1965, maximum basic weekly benefit amounts ranged from $20 in Puerto Rico to $56 in Wisconsin.
Thirty-four States, with 69.9 percent of covered workers, had a maximum benefit of $40 or more; 8 States, with 30.1 percent of covered workers, had a maximum of $50 or more; 8, with 11.1 percent of covered workers, still had a maximum benefit of less than $35. (In States which provide dependents’ allowances, the basic weekly benefit is defined by law to be the amount for a claimant with no dependents.)
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Maximum basic weekly benefit amount, through June 30, 1965
Number of States
Percent of covered workers (calendar year 1964)
Percent Cumulative
percent
$50 and over ($50-$56)
$45-$49_______________
$40-$44______________
$35-$39______________
$30-$34_______________
Under $30____________
Total__________
8 30.1 30.1
15 19.9 50.0
11 19.9 69.9
10 19.0 88.9
7 10.4 99.3
1 .7 100.0
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100.0
In most States, the weekly benefit represented about one-half of the weekly wage for those workers who qualified for less than the maximum benefit amount. As shown in the following table, the small increases in the maximum weekly benefits effected during fiscal 1965 did not keep pace with increases in wages. In only 13 States, with 10.5 percent of the covered workers, did the maximum benefit represent 50 percent or more of average weekly wages.
Maximum basic weekly benefit amount through June 30,1965, as a percent of average weekly wages in calendar year 1964
Number of States
Percent of covered workers (calendar year 1964)
Percent Cumulative percent
50-53____
45-49____
40-44____
35-39____
30-34____
Under 30.
1
12
6
15
12
4
2
25.5
29.1
22.1
8.3
4.5
0.4
10.5
36.0
65.1
87.2
95.5
100.0
Total.
100.0 _______________
As shown in the following table, eight States, with 18.2 percent of covered workers, provided uniform duration. In other States which varied the duration of benefits with a worker’s base-period wages, the maximum duration ranged from 22 to 39 weeks. Forty-nine States, with 98 percent of covered workers, provided a maximum potential duration of 26 weeks or more.
Financing Legislation. Four States increased their taxable wage base: California from $3,800 to $4,100, Minnesota from $3,000 to $4,800, and Wisconsin from $3,000 to $3,600, all effective January 1, 1966; Nevada changed from $3,600 to $3,800, effective April 1, 1965.
Maximum duration in weeks Number of States Percent of covered workers (calendar year 1964)
Percent Cumulative percent
Uniform duration: 26 7 17.5 17.5
12 1 .7 18.2
Variable duration: 39 1 .9 19.1
36 _ _ .. 1 .5 19.6
34 2 2.9 22.5
30 4 12.1 34.6
28 . 1 1.4 36.0
26 33 62.7 98.7
24 1 .2 98.9
22 _ _ 1 1.1 100.0
Total. ... . _ 52 100.0
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Oregon repealed a provision for increasing the wage base by $200 when the fund reserve ratio is under 6 percent.
At the end of the fiscal year, 18 States had provisions for a taxable wage base above the $3,000 specified in the Federal Unemployment Tax Act.
One State (Nevada) increased its standard tax rate; seven States increased their maximum tax rates—California, Indiana, Iowa, Maine, Minnesota, North Carolina, and Rhode Island (with three—Indiana, Iowa, and Maine—going above 2.7 percent for the first time).
These actions brought to 37 the number of States providing a maximum tax rate above 2.7 percent. Other significant legislative enactments involved fund solvency measures in seven States—California, Indiana, Minnesota, Nevada, New Hampshire, Rhode Island, and Wisconsin.
Federal Legislation
Substantial revisions in Federal legislation on unemployment insurance were proposed by President Lyndon Johnson near the end of the fiscal year and were incorporated in Employment Security Amendments of 1965—House bill H.R. 8282 and Senate bill S. 1991. The proposed amendments were designed to effect the first major changes in the structure of the system since 1935 and to correct major problems of obsolescence and basic weaknesses in the system.
The Administration proposed:
1. A permanent Federal program of extended benefits for the long-term unemployed with a firm and substantial attachment to the labor force, to be financed by a new Federal payroll tax on covered employers and by an equal amount from general revenue.
2. Federal requirements as to minimum benefits to be provided under State laws.
3. A program of matching grants for States with excessive benefit costs.
4. Federal standards on disqualification periods and certain eligibility conditions.
5. Extension of coverage to small firms, nonprofit organizations, and some agricultural employers.
6. Increase in the taxable wage base from $3,000 to $5,600 after 1966 and $6,600 after 1970.
7. Repeal of Federal standards governing State pooled fund experience-rating plans.
8. A sanction to enforce equal treatment of maritime workers under State laws.
The proposed legislation would also create a Special Advisory Commission to review operations of the program, particularly results of the new amendments, and to report to the Secretary of Labor at a specified future date.
Training and Other Allowances
During fiscal year 1965, approximately $81.5 million was paid in allowances and approximately 108,500 trainees were determined eligible for training allow-
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ances under provisions of the Manpower Development and Training Act (MDTA). In addition, about $3 million in retraining subsistence allowances was paid to some 11,600 individuals who were referred to training under the Area Redevelopment Act.
The Manpower Act of 1965 (P.L. 89-15) provided for the following significant changes, among others, in the payment of MDTA training allowances:
1. Extension of the program to July 30,1969.
2. Extension of period for which allowances may be paid from 52 to 104 weeks.
3. Computation of the weekly training allowance amount on a four-quarter average of unemployment compensation payments in the State, instead of a one-quarter average, thereby insuring against frequent fluctuations in the amount trainees receive.
4. Payment of training allowances to single trainees without dependents; also to members of a household whose head is employed if allowance is necessary to permit family member to begin or to continue training.
5. Increase of $5 a week in allowance to a trainee for each dependent over two and up to a maximum of six dependents.
6. Increase from one to two in number of members in a household who may receive training allowances.
7. Continuation of youth allowances beyond the 22d birthday for one whose training is substantially completed when he becomes 22.
8. Provision of transportation allowances for daily commuting to and from training facility.
9. Increased transportation and subsistance allowances to trainees living in certain remote areas.
10. Permission for 20 hours of outside work per week by on-the-job trainees without reduction in training allowance.
11. Incorporation of training provisions of Area Redevelopment Act under MDTA.
12. Repeal of requirement for State matching of funds for payment of training allowances.
13. Postponement of effective date of State matching for institutional training costs to July 1, 1966.
As of the end of fiscal 1965, limited funds had been authorized for relocating unemployed persons to other areas where full-time employment is assured. The Manpower Act of 1965, among other provisions:
1. Extended the period for conducting pilot relocation projects to June 30, 1967.
2. Provided for grants equal to 100 percent of relocation expenses, with the requirement that interest be charged on all loans.
3. Stipulated that loans be restricted to cases where there is reasonable assurance of repayment and where credit is not otherwise available on reasonable terms from private sources or through other Federal, State, or local programs.
4. Provided that repayment of loans be required within 10 years.
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5. Provided that the amount of a loan together with other funds available be adequate for achievement of its purpose.
Agreements between the Secretary of Labor and State employment security agency administrators, providing for payment of readjustment allowances under the Trade Expansion Act of 1962, were submitted to State agencies. At the end of the fiscal year, 50 agreements had been signed. Out of 19 petitions filed by representatives of industries and worker groups for findings of adverse effect resulting from imports authorized under the Trade Expansion Act of 1962, the U.S. Tariff Commission denied all but 1 and that petition was withdrawn.
Research and Information
At the end of the fiscal year, 21 States were planning, installing, or operating a continuous wage and benefit history program, 15 more than at the end of fiscal 1964. The Manpower Administration urged full participation and provided a guide for State agency use in developing and maintaining such a program. Basic wage and benefit history data are generally available from State agency files and can be accumulated throughout the work life of covered workers and claimants.
Most other unemployment insurance research in fiscal year 1965 involved qualifying requirements, especially benefit entitlement studies. One benefit entitlement study was completed and 11 others were in progress.
Four studies were completed on extension of unemployment insurance coverage; three were in process; two were planned. These studies concerned coverage of State and local government and nonprofit organizations, and the feasibility of extending coverage to agricultural workers.
Other research conducted by State employment security agencies probed duration and adequacy of benefits; characteristics of claimants; nonmonetary determinations, including disqualified claimants; and specific claimant groups. Included in the last group were studies of claimants filing in successive benefit years.
Five studies of temporary disability insurance were completed in the fiscal year; nine were in process; one was being planned.
Work continued on special studies of beneficiaries under the Temporary Extended Unemployment Compensation (TEUC) Act of 1961. In cooperation with the Pennsylvania and Oklahoma agencies, two reports were published— “The Long-Term Unemployed: Labor Force Status After Exhaustion of Benefits” and “The Long-Term Unemployed: Educational Attainment.” Three other reports under the general tide “The Long-Term Unemployed” were nearing completion—“Comparison With Regular Unemployment Compensation Claimants,” “Financial Resources and Adjustments,” and “Interstate Claimants.” Upon completion of these studies, basic data were made available to interested research institutions.
Special Activities
Assistance to State agencies in technical and training areas was focused on recruitment and training of qualified counselor candidates, particularly for serv
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ices to youth. Most States had established counselor positions with appropriate qualification requirements.
In the 56 major metropolitan areas (population over 500,000), the Manpower Administration undertook a continuing program of operations review and consultation with State and area staff. Field studies were made in these major areas to improve coordination of employment service and unemployment insurance operations.
Project CAUSE (Counselor-Advisor University Summer Education) was conducted during the summer of 1964 by the Manpower Administration in cooperation with State employment security agencies and 27 universities and colleges. The project was designed to train counselor aides and youth advisers to help meet the need of State employment services for qualified staff to work with disadvantaged youth. In all, 21,993 persons completed the examination and 1,901 were accepted; 1,832 completed the university training; and 1,724 were certified as either counselor aides or youth advisers. More than 1,100 graduates were placed in jobs with State employment security agencies. Most of the others found jobs in other youth programs. Because of the continuing shortage of fully qualified counselors, plans were made for a second such training project during the summer of 1965.
The revised third edition of the “Dictionary of Occupational Titles” was completed and sent to the printer. It defines and classifies 23,000 jobs and the worker traits required for their performance. Programed training materials were prepared to facilitate introduction of the Dictionary and its revised occupational classification system.
The following job information documents were completed or were nearly completed: “Health Careers Guidebook,” which describes more than 200 different careers and is designed for secondary school students and their counselors, and a new edition of the “Career Guide for Demand Occupations,” which provides a comprehensive analysis of seven occupations currently in short supply.
The Manpower Administration published an Employment Service Review each month with a separate Statistical Supplement; an Unemployment Insurance Review and a companion publication, Unemployment Insurance Statistics; Area Trends in Employment; and an Employment and Wage Supplement to Farm Labor Developments. The latter document is published only during the active farm season.
NEIGHBORHOOD YOUTH CORPS
The Neighborhood Youth Corps, an integral arm of the Manpower Administration, directs one of the major programs for youth established by the Economic Opportunity Act of 1964.
The work-training program (under title I-B of the act) opens up jobs and provides income for young men and women, aged 16 through 21, from low-income families. Work performed by enrollees expands needed community services. Enrollees are usually paid $1.25 for each hour of work. They do not displace regularly employed persons.
792-672—66—5
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For the Neighborhood Youth Corps, fiscal year 1965 was primarily a year of planning, organization, and development. The first NYC project, in Newark, N.J., was approved in December 1964 and began operation in January 1965. The number of approved projects increased each month thereafter, but the program operation did not reach full scale until the last quarter of the fiscal year. (See appendix table 10.)
By the end of fiscal year 1965, 639 agreements were signed by the Federal Government and local sponsors. These agreements provided jobs for 278,426 young men and women. The projects, which were planned and operated by local citizens with technical assistance offered by NYC staff, operated in all 50 States, the District of Columbia, and Puerto Rico at a total cost of $146,076,115. (See appendix table 11.) The Federal Government, which was authorized to pay up to 90 percent of the cost of each project, contributed $127,675,880. The local share of $18,334,006 included contributions in cash as well as in plant, training facilities, services, and equipment.
In addition, there were three developmental projects, with no enrollees, that cost the Federal Government $66,229.
NYC provides opportunities for enrollees to perform useful services in the areas of social and economic life where urgent public needs are neglected or unmet. NYC projects stem from services that a State, county, or municipal government or a private, nonprofit organization may offer in the fields of health, education, welfare, recreation, and conservation. In fiscal 1965, enrollees worked as aides in schools, hospitals, museums, playgrounds, parks, forests, public housing projects, settlement houses, old age homes, and residences for homeless children. They aided disaster-ravaged areas, such as those hit by spring floods and tornadoes, and assisted with special programs, such as Head Start, a program directly administered by the Office of Economic Opportunity, to enable communities to organize and operate preschool programs which create an environment to develop disadvantaged children to their full potential. They performed community services that would not otherwise have been done, and they contributed to the conservation of natural resources and the development of recreation areas.
Scope of Projects
NYC projects place special emphasis on encouraging young people to stay in school or to resume their schooling. During the 1965 fiscal year, the projects were geared to include 191,945 young men and women who at the same time were also attending school. The in-school projects averaged 14 weeks’ duration. Enrollees attending school were limited to 15 hours of work a week in the Neighborhood Youth Corps, to make sure that worktime did not interfere with schoolwork.
Youths for whom the traditional school setting is not a realistic choice may also enroll in the Neighborhood Youth Corps. For such out-of-school and unemployed young men and women, NYC projects emphasize development of the attitudes, habits, and behavior required for regular employment. Enroll
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ment in the NYC is expected to be a first step for these youngsters—a successful beginning, a bridge that will enable them to return to the classroom, undertake skill training, or hold a job in the regular world of work. During the 1965 fiscal year, NYC out-of-school projects provided 86,481 jobs. These projects averaged 20 weeks’ duration and permitted out-of-school youths to work up to 32 hours a week. Out-of-school projects often ran 40 hours a week, with the extra hours devoted to remedial education and counseling.
Out of the total jobs provided, approximately 150,000 were summer jobs. Summer projects averaged 12 weeks in duration.
Projects ranged in size from one that included 3 youths to another that had the capacity for 14,500 youths. The average in-school project was authorized to enroll 363 youths. Approximately 250 youths were enrolled in the typical out-of-school project.
Personnel in the 7 regional and 14 district offices around the Nation were available to assist potential sponsors in the preparation of proposals and to offer professional guidance once a project was underway. As required by the Economic Opportunity Act, sponsors of Neighborhood Youth Corps projects coordinated their efforts with existing community action programs. Before projects were drawn up, potential sponsors surveyed the need in their communities for NYC and located opportunities to employ NYC enrollees. To be acceptable, proposals had to demonstrate the educational and professional competence of the staff to direct NYC projects and the capacity of the sponsoring organization to fulfill its commitments.
Sponsors were required to assume primary responsibility for recruitment and selection of NYC enrollees. They were encouraged to use the services of State employment services and the newly created youth opportunity centers of the State employment services to recruit and refer out-of-school enrollees. Schools that sponsored projects for in-school youths usually did their own recruitment and selection.
Those responsible for selection were instructed to seek out those who most needed help: The economically disadvantaged who, in addition, were dropouts or potential dropouts; adjudicated delinquents; youths with disciplinary problems, or under-achievers.
Review and evaluation of current projects was carried out by members of the national staff who periodically visited projects to observe program practices. One project was terminated because review showed regulations for determining eligible enrollees had been ignored.
Enrollee Data
A composite picture of the NYC enrollee during the fiscal year 1965 is presented below. (Data for this picture was drawn from a heavily representative study of 25 percent of those enrolled in NYC.)
The typical out-of-school enrollee—
• Was 18 years of age.
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• Lived in a household of five persons, but could possibly be among the one-third of all enrollees whose household consisted of at least seven persons.
• Had completed the 10th grade before dropping out of school.
• Had been out of school from 1 to 2 years, but if in the 20 to 21 age bracket, had been out for over 2 years, most likely.
The typical in-school enrollee—
• Was 17 years of age.
• Lived in a household of five persons, but could possibly be among the one-third of all enrollees whose household consisted of at least seven persons.
• Had completed the 10th grade in school.
• Had had no previous employment experience.
• Was looking for part-time employment.
Negroes represented the largest proportion of out-of-school youth of any age, although more than half of the enrollees were white. Approximately 60 percent of the enrollees were male.
Program Development
The national staff assisted sponsors with program development so that enrollees might receive not only work-training, which is the heart of the legislation behind the Neighborhood Youth Corps, but the related services that are so necessary for maximum benefits. Preselection testing was available through the resources of the U.S. Employment Service. In-project counseling and guidance were important components of projects.
The success of a Neighborhood Youth Corps is measured, of course, by what happens to an enrollee after a project ends. A commitment by the sponsor of each project for job development, placement, and followup is prerequisite to the signing of and NYC agreement between a local sponsor and the U.S. Department of Labor. From the beginning, project directors have been urged to work closely with local leaders in education, business, labor, and industry to develop opportunities for young people who have “graduated” from the Neighborhood Youth Corps. Some results are already evident: Businessmen have appeared at assemblies of NYC enrollees to give tips on how to get and hold a job. Selected industries have guaranteed jobs for a specific number of young people who have successfully completed enrollment in a NYC project. Many dropouts have returned to school. Other enrollees have been assisted in making a smooth transition from the Neighborhood Youth Corps to more advanced skill training programs such as those operated under the Manpower Development and Training Act. Some have entered the armed services. For others, regular jobs have opened up that were, in effect, created by the Neighborhood Youth Corps. This happened in areas where needed but previously nonexistent services were so well performed by NYC enrollees that the services were continued beyond the length of the project.
The long-range effectiveness of this program will depend in part on how well our economy responds to the need for additional jobs—on the availability of productive employment for these young people who, through enrollment in the
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Neighborhood Youth Corps, have acquired the self-respect and basic workexperience necessary for regular employment.
Minority Participation
Nondiscrimination has been a main focus of the Neighborhood Youth Corps since its inception. NYC has always required a special assurance from sponsors that they will adhere to the letter and spirit of equal employment opportunity without regard to race, color, creed, or national origin. Sponsors have been required to follow nondiscriminatory practices in recruiting and selecting enrollees, in making work assignments and offering supportive services such as counseling and remedial education, and in employing staff members.
From the beginning of the program, NYC evaluators have looked for evidence of compliance and have reported violations to the Director. Generally, compliance has been good. Where there has been evidence of discrimination, every effort has been made to correct the situation. NYC expects that the title VII provisions of the Civil Rights Act will give it the additional tools necessary to fully realize its basic objectives in this field.
OFFICE OF MANPOWER, AUTOMATION, AND
TRAINING
The Office of Manpower, Automation, and Training is responsible for the planning, research, and evaluation of Labor Department activities under the comprehensive manpower program. In carrying out these responsibilities under the Manpower Development and Training Act of 1962, as amended, 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, using its own staff and through grants and contracts with other governmental and nongovernmental agencies, conducts a research program to obtain knowledge and insights 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; and recommends appropriate action.
5. Provides technical assistance to foreign countries in the area of manpower planning and development.
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OMAT’s major operating segments are the Office of Manpower and Automation Research, responsible for the planning, development, and conduct of the comprehensive manpower research program; and the Office of Manpower Development, responsible for program planning and policy development in the field of occupational training and for interpretive, appraisal, and evaluative functions.
During 1965, as part of the Department of Labor’s efforts to achieve greater efficiency and economy in its operations, OMAT’s field offices in 14 major metropolitan areas were closed and program activities were centralized in the national office. All field offices were closed by June 30,1965.
Amendments to the MDTA
The most significant development of the fiscal year was the passage by the Congress of the Manpower Act of 1965, which broadened, strengthened, and extended the Manpower Development and Training Act of 1962, as amended.
The more important new measures affecting training included:
• Extension of the termination date for training under title II from June 30, 1966, to June 30, 1969.
® Postponement of State contributions to training costs until fiscal year 1967 and lowering of the State contribution from one-third to one-tenth, which may be in kind as well as cash.
@ Encouragement of (a) wider use of private facilities when needed to provide equipment or services not available in public institutions and (b) expansion of the method of individual referral to training.
• Transfer of training formerly conducted under the Area Redevelopment Act to the MDTA with total Federal financing.
® Expansion of provisions relating to allowances by: Increasing the maximum period for which they may be paid from 1 to 2 years; providing an increment for dependents; allowing on-the-job trainees to work part-time in jobs unrelated to their training for up to 20 hours a week without reduction in their allowance; paying daily transportation expenses for all trainees; extending eligibility for training allowances to single adults not living as a member of a family and for other than family heads when the family head is unemployed.
Amendments to title I expand and coordinate the research program by permitting a more comprehensive program of basic research and by bringing together all experimental, developmental, demonstration, and pilot projects under title I. The more important measures affecting research included:
® Increase of basic research funding and authorization for the Secretary to make grants as well as enter into contracts for research and experimental programs.
• Transfer of the program of experimental and demonstration projects to title I to assure the expansion of such projects without regard to funding limitations and to permit such projects to be undertaken through contracts or grants.
• Authorization of Federal assistance for active job development programs.
® Extension and transfer to title I of the labor mobility demonstration projects originally authorized under the 1963 amendments.
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• Authorization for a pilot program to experiment with placement of persons having difficulty in securing employment for reasons other than ability to perform.
Research
A major function of the research staff is preparation of the Secretary’s report to the President for inclusion in the annual Manpower Report of the President. The 1965 Manpower Report analyzed recent employment and unemployment trends, with particular attention to the persistently high unemployment rates of special groups and to new programs and policies to reduce such unemployment; projected the magnitude and composition of the labor force and examined the impact of government programs; reviewed trends in manpower development; assessed trends in geographic mobility of the American work force; described the role of the Federal-State employment service system in matching workers and jobs; and presented a comprehensive statistical appendix of both current and historical data bearing on manpower.
Contract Research
The contract research program produced some notable results during the year as projects initiated in the first 2 years of the program reached completion. The program is designed to stimulate and draw on academic and other research resources to develop new information on manpower problems. Among the range of studies completed or published during the fiscal year were:
1. A comparative analysis of government retraining activities in Western Europe, indicating directions American policymakers should consider in the light of European experience. The study was conducted under contract with the University of California’s Dr. Margaret S. Gordon.
2. The first survey of the extent and sources of formal occupational training received by the American work force. The published findings help put in perspective the major gaps in overall national training efforts. The data were gathered under contract with the Bureau of Labor Statistics.
3. An analysis of the growth and significance of the public and private not-for-profit sectors of the economy in relation to national use of manpower resources. This study, “The Pluralistic Economy,” is one of a series contracted for with Columbia University, under the direction of Dr. Eli Ginzberg, to examine “growth constellations” in the economy in terms of their manpower implications.
4. A survey of the initial employment experience of military retirees. The identification and analysis of the distinctive employment difficulties confronting this growing group were made by the Bureau of Social Science Research, Inc.
These and other studies developed by the contract research program are outlined in the Secretary’s annual report on research and training under the MDTA and in an annual booklet summarizing OMAT-sponsored projects. In addition, each completed report is distributed to major libraries and document reference centers, and reports are disseminated widely to potential-user organizations and individuals with special interest in that subject.
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In fiscal 1965, about 200 formal research project proposals were received; most were not directly solicited, but some were expressly invited or encouraged. Contracts were actually negotiated for 41.
Among the most significant new research contracts developed were:
1. A major “longitudinal” labor force survey of national samples of older persons and younger men. Under contract with the Ohio State University Research Foundation and the Bureau of the Census, this study will trace the same persons annually over a period of 5 years in an effort to gage the influence of economic and social developments and of changes in family, age, health, and other personal circumstances on continued participation in the labor force and on changes in types of employment.
2. The first sizable examination of apprenticeship programs and their need for adjustment in the light of changing work conditions. Developed in cooperation with the Bureau of Apprenticeship and Training, this study to be conducted by Purdue University will focus on a number of major apprenticeable craft occupations.
3. The development of projections of manpower required in various occupations by 1970 and 1975 to attain national goals in education, health, housing, space, and other areas. This work, undertaken by the National Planning Association, is designed to provide perspective on problems of allocation of manpower resources as between competing yet interdependent national objectives.
Staff Research
Some of the significant “internal” research activity in fiscal 1965 included:
1. Studies focusing on “special training needs” of specific manpower groups who are underutilized in terms of their potential. A bulletin drawing together information on the mentally retarded, for example, received wide attention. Earlier studies focused on young workers and on unemployed heads of families; other studies in process during the year are on women workers, prison inmates, and the physically handicapped.
2. Detailed examination of the psychological makeup of disadvantaged unemployed workers to aid in shaping training programs. The motives and attitudes of a sample of such trainees and trainee dropouts were explored; a report on findings is to be published.
3. Special surveys to aid in manpower policy planning of other Federal agencies. One study surveyed employment service offices, industry training directors, and college placement officials to determine the effects of the selective service draft on employment experience of young men, as part of an overall Defense Department review of military service policies. Another surveyed requirements of government agencies for aviation personnel as part of a study of future civil aviation manpower requirements by the Federal Aviation Agency.
4. Study of experience in other countries relevant to domestic policy. The practices of U.S. companies training foreign workers for their subsidiaries in developing countries were described in a special bulletin.
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Research Coordination
The departmentwide Coordinating Committee on Manpower Research, headed by OMAT, prepared an inventory of all manpower research conducted or sponsored by the Department to aid in coordinating and planning efforts, and developed a plan which identifies new directions to be emphasized in forthcoming research efforts.
Training
Activities in fiscal year 1965 were concerned primarily with refining the operating tools—procedures, regulations, and instructions. Continuing analysis and evaluation of programs revealed the need for improvement in the administration and coverage of the basic legislation—which led to the enactment in April 1965 of amendments to the MDTA (the Manpower Act of 1965). OMAT personnel coordinated recommendations for these amendments and prepared background materials in support of them.
Standards and Program Planning
OMAT continued to develop and coordinate policy needed to implement such training provisions of the new amendments as liberalization of allowances. Guidelines were also issued on expansion of the use of the individual trainee referral plan, training for subprofessional occupations and refresher training for unemployed professional workers, training individuals employed less than full-time or below their skill potential, and training for persons residing in redevelopment areas. Revised standards dealing with overall administration of the MDTA program were issued on such matters as obligation and deobligation of funds to assure the most effective use of available monies and simplifying requirements for undertaking small on-the-job projects.
OMAT provides leadership to other offices and bureaus of the Department in developing plans for specific manpower program applications. One major undertaking involved laying out a complete plan—encompassing organizational structure, policy recommendations, contracting, and other administrative procedures—which enabled the Neighborhood Youth Corps, established to implement title IB of the Economic Opportunity Act, to become operational immediately upon signing of the act.
Other important planning functions performed during the fiscal year included: Coordination of activities of the Department of Defense and the Department of Labor in developing plans for retraining workers expected to be affected by cutbacks in military installations; initiation of the development of a national-State manpower development planning system; setting up plans for implementing the bonding assistance program provided in the Manpower Act of 1965; and coordinating the preparation of recommendations for establishing a system of program experimentation.
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Evaluation
While evaluations during 1965 continued to concentrate on the MDTA program, toward the end of the fiscal year planning was begun on studies covering other manpower programs. Studies included an evaluation of the effectiveness of MDTA from the standpoint of trainees and their employers, a study of persons who did not complete their MDTA courses, evaluations of OJT programs, a preliminary evaluation of multi-occupational projects involving institutional training under MDTA, an evaluation of the results of an experimental and demonstration project for disadvantaged adults conducted by Virginia State College, and an evaluation of household worker training under MDTA.
Among the most significant findings were that: Even persons who left MDTA training courses before completion usually benefited greatly from the training, Negroes had a much poorer post-training employment record than whites, and about six out of seven employers considered their experiences with MDTA to be satisfactory.
Plans were developed during the year for a comprehensive evaluation system in the Manpower Administration under the leadership of evaluation staff of OMAT with specific responsibilities assigned to the constituent agencies of the Manpower Administration.
In keeping with its continuing responsibility for improving program statistical data, OMAT exercised leadership in achievement of a more comprehensive and statistically valid reporting system. Early in the year, a regular report on the post-training employment experience of individual MDTA graduates was launched. A survey of the first 36,000 returns from graduates of institutional programs showed that: About three-fourths had found jobs; men had a better job-finding rate than women; white persons a better rate than nonwhite persons; and high school graduates a better rate than nongraduates. The degree of jobfinding success was affected not only by the personal characteristics of graduates but by the skills attained through training. Licensed practical nurses had one of the highest placement rates (90 percent) and clerk-typists one of the lowest (70 percent).
Demonstration Programs
The MDTA experimental and demonstration program concerns itself with preparing marginally employable workers for entry or re-entry into the labor force. It has provided a vehicle for demonstrating the usefulness of several basic techniques now common to many local and regional antipoverty efforts. Among these are the use of indigenous subprofessionals to reach the disadvantaged on their home ground; work-sample and other nonverbal tests to measure training and employment potential; sheltered workshops, work crews, work tryout stations, and repetitive placement as avenues to steady employment; and the integration of public and private resources for maximum impact in reaching and developing the productive potential of the hardcore unemployed.
As these efforts began to pay off in terms of large-scale mobilization of community resources for a serious assault on the problems of the poor, the E & D 70
program began focusing on the problems of groups who will be touched only lightly by even these expanded programs—such groups as dope addicts, alcoholics, the inmates of mental institutions, legal offenders, and the mentally retarded and the physically disabled.
Redevelopment Areas
The Manpower Act of 1965 in effect transferred the training provisions of the Area Redevelopment Act, with certain modifications, to the Manpower Development and Training Act. The sections in the ARA on training were repealed and provision was made under the MDTA for a supplementary training program for unemployed and underemployed persons residing in areas designated as redevelopment areas by the Secretary of Commerce.
In bringing the ARA training program under MDTA, Congress kept intact the purposes and emphasis of the program. It preserved (a) joint determination of occupational training and retraining needs by the Secretaries of Labor and Commerce to assure that training activities are coordinated with the redevelopment effort, (b) continued eligibility for training allowances of any unemployed and underemployed persons residing in redevelopment areas without regard to MDTA restrictions, and (c) exemption of the funds appropriated for the supplementary program from State apportionment and State matching requirements. At the same time, the more liberal provisions of the MDTA regarding duration of training, extent of allowances, and other benefits should overcome the limitations to which occupational training under ARA was subject.
The pattern, emphasis, and direction which the program has taken, along with its accomplishments, will provide a solid foundation on which to build a program of greater scope and magnitude. The 309 training projects which were approved this year authorized the training of 11,020 persons. The training activity as a whole covered a cross section of the Nation’s economically distressed areas, including industrial centers in the Northeast, former mining communities in Appalachia, rural areas in the South, and Indian reservations in the West. The approved courses offered training in 87 different occupations. While the preponderance of the occupations were in the lower skill spectrum, all major occupational groups were represented, from the semiskilled level such as bench assembler to draftsman in the semiprofessional category.
About 89 percent of the enrollees completed their training, resulting in a dropout rate of only 11 percent—significantly less than the 20 to 25 percent rate considered usual for this type of program. Seventy percent of the “graduates” found employment.
International
In cooperation with the Bureau of International Labor Affairs, OMAT planned and conducted the Fourth Annual International Seminar on Manpower in Social and Economic Development in June, July, and August 1964, and issued the proceedings of the seminar. This conference brought together leading economists and manpower experts from 35 emerging nations. The Office also
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played a major role in planning the Fifth Annual Seminar held in the summer of 1965.
Information and Communication
Charged by the MDTA to “promote, encourage, or directly engage in programs of information and communication concerning manpower requirements, development, and utilization,” OMAT continued and strengthened its technical manpower information and communication efforts during fiscal 1965. It participated in and provided exhibits, displays, and support materials for a wide variety of seminars, workshops, conferences, and conventions. To meet its responsibility for reporting to the Congress, other Government agencies, and the general public, OMAT published and distributed a number of new publications including a series on manpower seminars and one on the results of contract research.
Among the most important publications were two reports to the Congress— the 1965 “Manpower Report of the President and A Report on Manpower Requirements, Resources, Utilization, and Training by the United States Department of Labor” and the 1965 report of the Secretary of Labor on “Manpower Research and Training Under the MDTA”—plus individual reprints of significant segments of each report. Individual publications included: “Developing Human Resources Through Occupational Training,” a report on training activities under the Area Redevelopment Act; a group of issuances explaining the provisions of the 1965 amendments to the MDTA; manpower research bulletins; evaluation reports on MDTA programs; special reports on automation and the handicapped and on the training needs of the food service industry; and issuances on various aspects of experimental and demonstration programs.
The program of national seminars on manpower policy and programs, begun in 1964, was carried out and renewed for fiscal 1966. This program provides a platform for the discussion of issues raised in the “Manpower Report of the President” and features addresses by prominent experts from various sectors of society. Topics included “Policies for the Promotion of Economic Growth” by Gardner Ackley, “Education Automation” by R. Buckminster Fuller, “The Church and the Anti-poverty Program” by Father Benjamin Masse, “Twenty Years of Economic and Industrial Change” by Robert A. Gordon, and “Measurement of Technological Change” by Solomon Fabricant. Reports on 4 of the 12 seminars of the 1965 programs have been published. Reports on the others are in preparation.
National Manpower Advisory Committee
The National Manpower Advisory Committee is appointed by the Secretary of Labor to advise him and make recommendations on activities under the MDTA. OMAT provides staff support and assistance to the Committee and its various subcommittees.
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The National Manpower Advisory Committee made several recommendations during the year, including recommendations for: Ad hoc survey groups of outside experts to appraise training programs; a search for alternative means for funding experimental and demonstration projects; the establishment of a $1 per hour minimum as a wage policy guideline in retraining for jobs with low wage levels; and expansion of the on-the-job training program.
The Subcommittee on Research, in its review of the evaluation and research program being carried on under title I of the MDTA, recommended several actions for strengthening the Department’s efforts. They included: The development of more careful, well-defined occupational and industrial employment forecasts; a survey of completed research in certain analytical areas to determine gaps in the program; a program of research into the development of jobs for the less able and disadvantaged; and a meeting of agricultural economists to investigate the problems of farm labor and rural population.
The Panel on Counseling and Selection recommended and cooperated with the University of Missouri in planning and conducting an Invitational Conference on Government-University Relations in the Professional Preparation and Employment of Counselors. The conference produced a set of guidelines to help government agencies and colleges and universities cooperate more effectively in meeting the critical and growing need for qualified counselors in the Nation’s schools and to meet the needs of recent manpower legislation.
The Subcommittee on Training recommended the establishment of more State and local manpower advisory committees and recommended studies of the dimensions of unemployment problems among professional workers.
The Subcommittee on Community Relations recommended greater community activity in establishment of local manpower advisory committees, the undertaking of local “Mayor’s Manpower Conferences,” and the establishment of closer communication between local manpower advisory committees and community action groups under the Economic Opportunity Act of 1964.
During fiscal 1965, four additional regional manpower advisory committees were established—the Southwestern, North Central, Southeastern, and Mountain States Committees. These four, with the already established Pacific Coast Committee, are part of eight committees proposed to identify the specific manpower problems of given areas and to interest the residents of the areas in those problems.
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Appendix table 1.—Registered apprentices in training, new registrations, completions, and cancellations, 1941-65
Year In training on Jan. 1 New registrations 1 Completions Cancellations2 In training on Dec. 31
1941 18,300 14,177 1,289 5,051 26,137
1942 26^ 137 20; 701 2,011 4,683 40,144
1943 40; 144 n; 66i i;7i5 6,975 43; 115
1944 43,115 7; 775 2; 122 8,197 40, 571
1945 40,571 23,040 1,568 5,078 56,965
1946 56,965 84; 730 2; 042 8,436 13i;217
1947 131i 217 94,238 7,311 25,190 192, 954
1948 192; 954 85; 918 13,375 35; 117 230,380
1949 230; 380 66,745 25,045 41,257 230,823
1950 230,823 60,186 38,533 49,747 202,729
1951 202,729 63,881 38,754 56,845 171,011
1952* 172,477 62,842 33,098 43,689 158, 532
1953 158,532 73, 620 28,561 43,333 160,258
1954 160; 258 58,939 27,383 33,139 158, 675
1955 158;675 67,265 24,795 26,423 174,722
1956 174; 722 74,062 27,231 33,416 188,137
1957* 189,684 59,638 30,356 33,275 185,691
1958 185; 691 49; 569 30, 647 26,918 177,695
1959 177, 695 66,230 37,375 40,545 166,005
1960* 172;161 54,100 3i; 727 33; 406 161,128
1961 161,128 49,482 28, 547 26,414 155,649
1962 155; 649 55,590 25,918 26,434 158,887
1963 - 158', 887 57,204 26,029 26,744 163,318
1964 163,318 59; 960 25,744 27,001 170,533
1965 170; 533
1 Includes reinstatements.
2 Cancellations are not synonymous with “dropouts,” since they include layoffs, discharges, out-of-State transfers, upgrading within certain trades, and suspensions for military service, as well as voluntary “quits.”
*Major revisions in reporting system effected this year.
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Appendix table 2.—Estimated costs of approved on-the-job training Manpower Development and Training Act projects,1 July 1964-June 1965
Costs 3 4
State Number of projects 1 2 3 4 5 Number of trainees July 1964-June 1965 Fiscal year 1966 allowances 3 Total costs
Total Employer contracts Allowances Training
Total 1,082 3 53,724 $33,644,660 $29,745,441 $2,522,673 $1,376, 546 $1,698,040 $35,342,700
Alabama... 3 236 211,039 18,445 316,944 59,177 4,450,421 727,003 209,957 17,238 279,155 57, 674 1,082 1,207 0 31,200 0 242,239
Alaska _ 4 57 0 18,445
Arizona 8 322 36,787 1,002 18,000 334,944
Arkansas. 5 153 1,503 0 0 59,177
California 34 7,447 695 4, 006,049 445,006 324,465 119,907 148,060 4,598,481
Colorado ... . 5 246,784 35,213 200,000 927,003
Connecticut 43 1,142 15 1,131,522 1,783 1,083,591 274,331 748,782 0 969,854 1,543 99,630 240 62,038 96,616 1,228,138
Delaware ... 2 0 0 1,783
Dist. of Col. 14 1,424 180 989,323 50,738 43, 530 33,600 1,117,191
Florida. 10 211,734 507,345 0 43,543 19,054 17,920 292,251
Georgia 13 1,150 123,055 118,382 20,388 769,170
Guam. .. 0 0 0 0 0 0
Hawaii 3 85 46,811 2,138 3,718,071 410,040 98,388 39,740 395,677 574,595 106,375 269,482 1,085,758 38,936 0 7, 875 0 0 46,811
Idaho 1 0 2,138 0 0 2,138
Illinois _ ._ 28 6,931 602 3,582,606 370,403 34,856 100,609 94,041 3, 812,112
Indiana . .. 18 18,607 21,030 135 410,175
Iowa 4 171 96, 504 1,884 0 0 98,388
Kansas . 13 109 36, 741 252,053 2,999 0 0 39, 740
Kentucky 44 673 143,624 0 0 395,677
Louisiana 79 2,266 563,262 61, 085 11,333 24,209 0 89,352 0 663,947
Maine 8 '208 21,081 106,375
Maryland 10 323 261,131 832,783 8,351 228,889 0 396 269, 878
Massachusetts . . 36 1,374 24,086 30,240 1,115,998
Michigan 43 3, 608 493 2,815,508 195,144 979,213 467,964 17,448 3,134 5,642 130,671 2,589,288 140,486 572,678 459,564 26,376 199, 844 33,600 2,849,108
Minnesota 42 53,682 976 34,271 229,415
Mississippi. 7 895 406,535 0 0 979,213
Missouri.* 7 706 8,400 0 21,600 489,564
Montana 13 53 15,491 391 1,957 0 0 17,448
Nebraska 2 2 2,743 0 0 3,134
Nevada 3 10 3,522 128,088 2,120 2,583 0 0 5,642
New Hampshire 16 489 0 0 130, 671
New Jersey 57 2,256 34 1,088,103 17,311 1,041,279 15,614 25,920 20,904 40,325 1,128,428
New Mexico 7 1,697 0 0 17,311
New York 81 6,146 2,107 4,059,121 630, 502 3,607,351 626,836 173,583 278,187 100,425 4,159,546
North Carolina... 33 3,666 0 21,600 652,102
North Dakota ... 23 257 148,381 147,188 1,193 0 28,800 177,181
Ohio 40 1,342 166 1,274,241 174,453 1,055,126 169,721 86,581 132, 534 120,372 1,394,613
Oklahoma 4 4,732 0 36,000 210,453
Oregon 6 262 237,429 1,002,831 233,143 972,095 4,286 20,005 0 96,000 333,429
Pennsylvania 35 1, 509 10,731 93,499 1,096,330
Puerto Rico 40 1,603 60 438,959 34,328 428,871 29,481 10,088 0 17,760 456,719
Rhode Island 11 2,917 1,930 0 34,328
South Carolina.. 2 72 68,283 66, 619 1, 664 0 28,800 97,083
South Dakota 39 390 66,582 62,682 1,672 2,228 0 66, 582
Tennessee.. 25 1,309 1,350 200 827,686 796, 576 24,907 6, 203 62,400 890,086
Texas 67 687,043 241,090 106,012 167,561 0 546,866 208,825 124,013 16,164 4,440 691,483
Utah 4 32,265 0 33, 600 274,690
Vermont .. . 4 129 88, 597 137, 043 12,565 4,850 33,600 139,612
Virginia 16 245 30,518 0 34,200 201,761
Virgin Islands 0 0 0 0 0 0 0
Washington 9 689 361,239 334, 534 26,705 0 38,400 399,639
West Virginia.. . 6 249 305,024 304,031 993 0 38,400 343,424
Wisconsin 37 1,501 29 1,305,199 18,445 1,155, 060 18,013 14,076 432 136, 063 0 1,305,199
Wyoming 18 0 0 18,445
1 Includes individuals trained as counselor aides under the CAUSE program as follows: 94 projects; 4,302 trainees; total cost, $5,930,498; employer contracts, $4,556,264; and allowances, $1,374,234.
2 Data apply only to projects sponsored by the Bureau of Apprenticeship and Training.
3 Preliminary.
4 Includes the following amounts for persons from experimental and demonstration projects: total costs, $4,201,918; employer contracts, $3,854,346; allowances, fiscal year 1965, $173,372 and fiscal year 1966, $174,200.
5 Reflects allowances committed for projects approved during fiscal year 1965 which continue into fiscal year 1966.
e Includes 7,213 persons from experimental and demonstration projects approved for on-the-job training.
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Appendix table 3.—Selected employment service activities, U.S. totals for fiscal years 1956-65, l)y State for fiscal year 1965
Fiscal year and State New applications i Total counseling interviews Individuals tested Placements
Nonagri-cultural Agricultural
1956 8,083,024 1,444, 669 1,314,134 6,173,684 9,248,459
1957 8', 546,028 1', 507', 825 1,448,607 5,957,490 9,002,052
1958 10', 412', 879 1,542', 846 i; 349,924 5,235,910 8,709,763
1959-. 9,368,746 1,734; 170 i; 609', 536 5,703,458 9,615,163
1960 9, 598, 604 1, 785, 541 1,760,754 6; 082; 753 9, 747,116
1961 10,605,108 1, 783, 310 i; 799, 730 5, 591, 089 9, 004,319
1962.. 10,413, 532 2; 020', 549 2,176,709 6, 506, 008 9,028,451
1963 11, 045,696 2; 088; 332 2,300, 436 6,632,252 7,923, 543
1964 10', 924; 071 2', 008, 356 2,337,758 6,453,858 7,124, 933
1965 10; 94< 255 2,114,538 2; 48i; 925 6,329,678 6,047,130
Alabama 160,238 16,687 46,030 120, 503 57,268
Alaska 20,326 4,259 6,448 11,455 491
Arizona __ 134; 830 18', 130 22,992 97,774 726,233
Arkansas 171', 644 28; 583 37', 715 116,419 170,196
California 1,636,517 213,188 257; 411 654; 376 244,424
Colorado ' 140; 669 24, 326 34,394 90,427 55, 948
Connecticut 177; 834 35,056 35,679 87; 665 11, 519
Delaware - 18,680 9; 560 6,650 6; 923 4,910
District of Columbia 76, 700 27,' 046 18,710 48, 532 0
Florida - 228,394 35, 479 58,238 243,279 120,152
Georgia 2(32', 751 32', 118 50,152 159,450 36, 655
Guam 2; 667 '106 0 1,172 0
Hawaii 39,790 5,008 7,270 11,127 1,691
Idaho__ 52,858 9, 545 12,047 34,798 118,750
Illinois 388, 062 95,336 98; 418 199,112 46,633
Indiana - 246,288 26,439 45,044 124,171 31, 570
Iowa 113,995 17', 146 36,887 95,219 29,463
Kansas 106; 736 24; 120 26; 162 75, 501 16,370
Kentucky - 156; 062 35,751 52', 538 57,675 62,214
Louisiana 130', 172 18; 831 29; 770 90, 360 41,034
Maine 49; 770 17; 703 20; 747 23; 877 5,443
Maryland 152,823 31,641 29,288 88,417 121,848
Massachusetts 326; 520 82', 311 55; 540 150,378 36, 665
Michigan 53i; 017 72,960 92', 989 213,246 85,363
Minnesota 190; 905 2/ 116 63; 736 100; 831 16,304
Mississippi - - - 151', 679 43,209 52,409 102,747 1,050,079
Missouri 22i; 800 47; 891 52, 545 95,758 ' 128,161
Montana 50', 360 18', 909 16,' 767 33,672 32,035
Nebraska. 59; 970 15,333 25; 309 52,834 20,171
Nevada 48; 241 7; 972 9,323 30, 542 8,288
New Hampshire 4i; 702 8,253 7,503 15', 139 1,571
New Jersey . 324, 773 50,109 38, 640 154, 401 111, 750
New Mexico 62', 388 14; 176 16; 523 37, 641 12,903
New York _ 903,106 240; 581 177', 831 817,907 124,336
North Carolina 248,118 36; 731 76; 807 124,062 425, 607
North Dakota - 36; 427 6,084 12; 916 28; 572 15,231
Ohio _ 544,883 79,999 112; 170 230; 292 159; 257
Oklahoma 148; 836 38; 936 38; 266 175, 784 105,462
Oregon 146; 404 39', 412 30,980 66,166 307,985
Pennsylvania - - 562', 076 164; 633 117; 797 270,298 313,119
Puerto Rico . . 169; 495 29; 515 23; 825 47, 553 7,247
Rhode Island 47,793 13; 868 lb 903 28,195 139
South Carolina llO', 865 16; 696 35,710 71,425 71, 515
South Dakota 30; 318 7; 099 9; 928 21,129 7,815
Tennessee 150; 396 26; 943 63,608 117,678 402,070
Texas - - 712,456 13i; 003 173, 542 537,458 380,868
Utah 60; 766 16,205 29,916 33, 684 23,421
Vermont 24,460 3; 893 5,912 14,095 752
Virginia 149; 284 4i; 602 49,150 111, 002 48,488
Virgin Islands 3,344 '294 310 1, 515 6
Washington 193; 980 41,179 55, 743 85, 899 210, 665
West Virginia 84; 682 23,718 17,231 28,152 5,006
Wisconsin . 178; 866 38; 443 71, 706 79,046 24,116
Wyoming 20; 539 3,407 2,800 14,345 7,923
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.
76
Appendix table 4.—Significant provisions in State unemployment insurance laws, June 30,1965
Maximum benefits Minimum qualifying wages for maximum annual amount Base period A. High-quarter formula Sggggg^SggggggSSSgSSggSSfegS
High quarter W * r-T r-7” » W W Wr-7 W
Annual amount2 s gggggggggggggggggg gggggggg 8 " ”“g§ "g S g 3
Weekly amount 3 g^3$|8838^^$338833S?8?3
Minimum benefits Minimum qualifying wages Base period 888888888888888E88888888888 gsSiggls^ssEgg^gg^jSISOg
High quarter 8888888888888888838812888888 gRasggSggsgagg^ssggsgggsgfi
Annual amount2 s $111.00 100. 00 150.00 2 300. 00 140. 00 3 260.00-390. 00 78. 00 138. 00-156. 00 72. 00 8 130.00 3 170. 00 s 260.00 125.00 100. 00 100. 00 180.00 120. 00 260.00-312. 00 252.00- (2) 96. 00 78.00 195.00 132. 00 176. 00-264. 00 180.00 270. 00 100. 00
Weekly aw on nt 2 $9 10 15 25 14 *10-15 7 8-9 8 5 17 10 10 *9 10 12 10 10-12 10-16 8 3 15 12 16-24 10 15 10
Size of firm Minimum period of 1 20 weeks do 10 days Not specified 1 20 weeks 13 weeks 20 weeks At any time 20 weeks At any time Not specified1 20 weeks do do do i do i do At any time 13 weeks 20 weeks do do i do i Not specified > do 20 weeks do
0 number of workers
© 2 Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Georgia Hawaii Idaho Illinois Indiana Iowa. Kansas Kentucky Louisiana Maryland Massachusetts Mississippi Missouri Montana Nebraska Nevada New Mexico North Dakota Oklahoma
See footnotes at end of table.
792-672—66—6
77
4.—Significant provisions in State unemployment insurance laws, June 30, 1965*—Continued
1 I Minimum quali-flying wages for maximum annual amount Base period gf ci-cocfeo^-roro 88888888 §§§§§§§§
High quarter 8oS8358oS a i ! ! i
Annual amount2 888888888 88888888 U'w'r-TU' £ ■ a
?
ll 11 888888888 ggg§s§|gy 88888888 gSfiSSggg
78
Maximum benefits ! © § ©
1 ing emp and x 1 Weeks of employment
Annual amount2 3 gggggggg 1 §a‘
Weekly amount2
Minimum benefits i § ing employment and wages 1 |-g| S3SSSSSS
Weeks of employment S3SSSSSS
Annual ssssssss gpgsps i =r
sassssss
Size of firm Minimum period S 20 weeks 1 /Irx do Not specified 1 At any time do 20 weeks do1
ill si
1 Florida 1 1 : i Ohio > Rhode Island Vermont
79
Claimants exhausting benefits Percent of all beneficiaries 1
Number 8S§ggs§§sgsS~siig a"“=d”S’f’sa“’8R
Average duration (in weeks) Actual for ex-haustees SSjSSSSdSS OtNOOOONxfSQOHOlNiCr'
All beneficiaries Actual OCDCC’tlCOOHrH^O saasasassa OifWOOOiQxWHHCCiCCCiO ssadasa^sri^sss05
Potential OMCDxtOOCOOHH gjgjgjg? gate's; »C01 3 00T cd c© tC »Q C© 1Q 1Q :§8 s sag sa s &
Average weekly insured unemployment Percent of covered employment 2 (MCQiQrHrtHOOb’TtiOCQ CQCQiQiQ^iQ^^^CO t^r-(MOQ0C3»-4Q0 c4 o6 io c4 c4 oi »h o4 c4 ci co oi r-<
Number USHSSSgig gglggSEggS S§ig2
Initial claims « Classi sasssssssa sS°^£§Sg§g^ T-llQT-TjHb-
m§^s§l§l^§sigis2ia§gsSgfe§gss§sSss - rS J§£S - S * *°' “’■ - £ ” £S - Sf S S S -
O^NXOOOJ^HCOOiClCOb-ONClOOiOOCCCiOCOOXiDNOHiQOOiOOOSO
^sa5sd3“53sssdasa3ss3d5asoiassss5ao53saa
S?jgjSS8SaSS?4cjcjgj§?3SS8§S5jSgasjSSg?S8§S&8^gj
HNiOfDO^OCO^OI'OCDN H^COOq^GOOOJCOOOMOlOCOHN^OHCO^CCO
5SSS£SSJJ3g3£SS$SS3g8£g8&S38£SS£?°8SS££33
3SSE!S8$K3SSgSfc5Sfe^SgSg?gSggSg£i5g&S^S3§ &&SSSSg§SgSSSSSSS^SS5S3gSS?2^fc§§g8Sa3S§
§ssss§gg§s§s§§§§s^°lsg§s™H§^gs ££ss¥s§aYss^^
CC>iOiOT-lO'X>xtHCQCQr-IOOOi-ICC>l>CQt^CQOOO^-Cnxt.
t-< cm co co oi m< cm’ cd co cm cm xt< cm’ rt< cd Tt< cm cm’ cd cd cd c© cd cm’ cm cd cm rH id cd cm’ cm’
Ssss§^^ss§^g§§I^B^§§ss§ss§^ssg
°s§^ssg^§B§g3§fsgig§s^sssS§s3sgs°«a sd§^sdsfds3^^s^fsgdsfgdgss§dsdBgs§§sd
81
6.—Subject employers covered employment, and selected unemployment insurance financial data under State programs,1 U.S. totals for fiscal years 1956-65, by State for fiscal year 1965
I «a Percent of || 7.6 ’ 7.5 ? 6.7 ’5.9 ’5.6 ’ A 9 ’4.9 ’5.2 ’5.6 CQiOiOCMt^OOOb*r^COCOCOM40QOTtHOOiO'^
State reserve as of Ji Amount | §§§§§£§£§§ co oo r-*' co co io ia co co gsYs§fegs3g¥sgs|ga'g33?ss'
i Percent of taxable E CMCOCO^OOSOOCMObw rHr-iCMCiCMCMCiCMCir-J 1.0 2.0 1.9 1.5 3.3 1.2 1.7 1.2 1.2 .7 .7 1.5 1.7 1.1 .8 .7 1.5 1.5 1.4 1.3 1.4
Amount (000) Nc-fN-cf
Cf cf gfrH«5 CMKi-CO oVmWwhKJ
r-4r—' C-W-OrrtW-rt- dcfci'^'^MTrH Cf-T
84
COCQQO»OkQO(NOOC©»OCOOkOOOT-iQr-IC0Ttt^M* 5255^S^35a5S^5555SSSS5555S5S3ri^S3
feSSESSSSSSg&aSSSSSSSfcgSfcSSSSSSSSglS
3¥gf§^^
CO-U'r-rrHWW rHrMWTw" cf^rHCO* oTcOr-T rH «'
ESffiSfligiilSfSIISIlI^fSlglf^ilSl’
^^■WciciW rocfcjci- 0^ ci" 00 r-T
§g^ggggs§^g§sg“s§SK”si§sss§§§§5
85
Appendix table 8.—Selected data on unemployment compensation for ex-servicemen,1 2 U.S. totals for October 1958-June 1959 and fiscal years 1960-65, by State for fiscal year 1965
Fiscal year and State Initial claims Average weekly insured unemployment Average weekly number of beneficiaries Total number of beneficiaries Total benefits paid Average weekly benefit amount3 Average actual duration (in weeks)
Oct. 1958-June 1959 __ _ _ 249,231 55,479 50,409 160,224 $52,953,457 $29.35 10.8
I960 _ 321,737 49;927 47,255 186, 513 76,845,421 30.38 13.3
1961 375,680 67,694 64,836 239,271 107,143,380 30.90 14.1
1962 293,567 49,414 47,728 177,333 79,338,065 31.27 14.0
1963 343,477 57,881 54,908 211,139 95,991,913 32.67 13.5
1964 354,639 53,501 50,307 210,352 91,550,666 33.57 12.4
1965 306,278 42;683 39,993 174,707 77,530,633 36.12 11.9
Alabama - __ 5,385 797 712 2,729 1,125,176 30.35 13.6
Alaska _ ------ - 501 86 83 337 158,567 36.25 12.8
Arizona 4,395 521 502 2,736 1,013,049 37.56 9.5
Arkansas - - 2,805 432 361 1,670 588,084 30. 90 11.2
California _ 46,246 7,506 7,044 29,411 17,205,921 41.69 12.5
Colorado __ __ 3,511 '449 393 1,889 834,492 40.87 10.8
Connecticut „ - 2,619 284 237 1,491 432,695 35.55 8.2
Delaware _ 607 66 65 349 136,885 40.09 9.6
District of Columbia 1,426 192 197 799 400,798 38.83 12.8
Florida - - - 8,049 953 860 4,177 1,418,534 31.71 10.7
Georgia __ - - 3,921 550 493 2,226 858,843 33.40 11.5
Hawaii - 1,458 198 205 944 474,768 43. 95 11.3
Idaho _ 1,817 218 206 1,161 386,172 35.87 9.2
Illinois 10,950 1,073 997 5,317 1,829,680 35.28 9.7
Indiana. _ _ 5,538 '543 472 2,583 808,830 32.43 9.5
Iowa. 2; 607 246 243 1,219 387,638 30.52 10.4
Kansas _____ 3,078 382 373 1,788 756,622 38.73 10.8
Kentucky - _ — 5,563 1,029 1,005 3,811 1,788,864 34.08 13.7
Louisiana__ __ ______ 4,195 '678 613 2,324 1,096,795 34.34 13.7
Maine __ 1,569 206 182 1,086 316,122 32.06 8.7
Maryland. _ - 5,167 433 421 2,219 799,726 36.71 9.9
Massachusetts. _ 6,487 1,040 1,139 4,597 2,400,321 40.11 12.9
Michigan 11,995 1,250 1,121 6,459 1,864,393 32.31 9.0
Minnesota 5,359 '962 1,013 3,841 1,846,144 34.82 13.7
Mississippi - 1,703 199 173 849 256,066 28.30 10.6
Missouri e; 371 815 794 3,794 1,432,025 34.22 10.9
Montana - 1,383 215 187 848 323,399 32.24 11.5
Nebraska 1,062 133 139 722 251,015 34.32 10.0
Nevada _ 1^ 334 119 112 575 222,100 38.84 10.1
New Hampshire 1,128 114 118 672 262,237 41.54 9.1
New Jersey 9,181 1,256 1,186 5,379 2,499,974 40. 58 11.5
New Mexico - 31217 '366 336 1,268 580,375 32.72 13.8
New York. _ _ _ 22,623 2,721 2,387 11,389 4,373,237 35.08 10.9
North Carolina - 4,820 627 639 3,163 1,096,075 32.29 10.5
North Dakota 1,263 259 228 772 427,955 36.14 15.4
Ohio 14,458 1,921 1,536 7,372 2,819,177 35.38 10.8
Oklahoma - _ 3,008 705 635 2,296 990,819 29.78 14.4
Oregon __ - - 4,936 554 531 2,610 1,098,637 38.57 10.6
Pennsylvania. _ _ 23,731 3,346 3,084 13, 053 5,723,220 35.36 12.3
Puerto Rico. _ _ 2'877 '965 917 1,763 1,554,059 35.07 27.0
Rhode Island 1,564 182 180 962 314,058 33.37 9.8
South Carolina - __ 2,579 340 320 1,425 572,785 34.23 11.7
South Dakota _ _ 938 149 157 668 260,876 31.70 12.2
Tennessee- - -— 5,558 996 920 3,517 1,520,930 31.73 13.6
Texas - - - 12,880 1,993 2,163 8,105 3,936,945 34.39 13.9
Utah . _ _ - 1,694 325 301 1,211 557,120 35.48 12.9
Vermont - __ _ 680 96 90 426 167,570 35.60 11.0
Virginia _ _ _ _ _ 3,786 474 382 1,834 740,914 33.90 10.8
Virgin Islands _ _ 40 2 2 21 3,453 41.11 4.0
Washington - 17,326 1,864 1,812 8,324 3,635,743 37.05 11.3
West Virginia ------ 5,524 1,033 954 3,332 1,497,147 29.74 14.9
Wisconsin - 4,865 744 709 2,866 1,359,086 37.01 12.9
Wyoming 501 72 65 328 124,517 37.06 10.3
i Program became effective Oct. 27, 1958; except for total benefits paid, data shown exclude claims and payments made jointly with other unemployment insurance programs.
2 All columns relate to persons claiming benefits solely on the basis of military service.
3 Includes payments for partial unemployment.
86
Appendix table 9.—Disqualifications under State programs, by issue, U.S. totals for fiscal years 1956-65, by State for fiscal year 1965 [Note: Data for fiscal years 1956-59 include activities under the program of unemployment compensation for Federal employees and represent an unduplicated count for both
State and U OFE programs]
Refusal of suitable work Per 1,000 claimant contacts3 1.2 1.0 .5 .7 .8 .6 .9 .8 .9 .9
Number ss'ss'sWssss jo UW co roco-coW
Not able or not available Per 1,000 claimant contacts3 OOCOCOC^CQCQCO^OCO 00 OO © N OO N OO O O Ttir^aot^cocd^o^jocdjgcoadcocdcocoiocoodco-eaioo
Number co^^dWgco®'
Misconduct Per 1,000 new spells of insured unemployment 2 sisssasssss
Number co” co^-^co- ^'coK ai'co'roU'co-co* ■o-oW
Voluntary Quit Per 1,000 new spells of insured unemployment 2 KSSSSSSStiegSSSggSSgggSSS
Number cfo^of^s^^co-^^cfco-oog^
Total disqualifications 1 t-L-Tt-L-i r-i co co co co co
87
Appendix table 9.—Disqualifications under State programs, by issue, U.S. totals -for fiscal years 1956-65, by State for fiscal year 1965-Continued
88
Appendix table 10.—Neighborhood Youth Corps projects, enrollees, and Federal cost by month, through June 30,1965
Period Number of projects Enrollees Federal share of project cost
Total approved In school Out of school
Jan. 29,1965 1 7 4,131 3,640 700 $2 079 035
Feb. 26,1965 27 24^ 206 15,602 8,604 11 998 000
Mar. 31, 1965 2 70 48,922 31,330 17,592 25,44i; 157
Apr. 30,1965 160 92^ 392 59; 277 33; 115 47,169 440
May 28', 1965 261 137,791 9i; 655 46,136 66,219,366
June 30; 1965 a 639 278; 426 191; 945 86; 481 127,675,880
1 Includes 1 combination in-school and out-of-school project with 391 enrollees, at a Federal cost of $297,030.
2 Excludes 1 developmental project with no enrollees, at a Federal cost of $6,979.
3 Excludes 3 developmental projects, with no enrollees, at a Federal cost of $66,229.
89
Appendix table 11.—’Neighborhood Youth Corps projects, enrollees, and Federal cost, by State, as of June 30,1965
State Number of projects Enrollees Federal share of project cost
Total approved In school Out of school
U.S. summary - 639 278,426 191,945 86,481 $127,675,880
Alabama. _ ... _ _ 2 525 250 275 275,904
Alaska _ 6 1,315 555 760 1,549,720
Arizona _ 15 14,113 8,083 6,030 7,371,549
Arkansas _ _ 17 12,101 10,975 1,126 6,448,819
California 31 23,246 15,964 7,282 10,558,017
Colorado __ 1 11 6,823 4,317 2,506 2,334,470
Connecticut. _ - - 8 2, 016 1,366 650 1,403,095
Delaware __ 3 483 483 233,710
District of Columbia 3 5,823 4,641 1,182 3,325,818
Florida _ - _ 10 9, 093 7,113 1,980 3,415,001
Georgia . _ . _ 15 6,864 6,486 378 2,648,815
Guam _ _ -
Hawaii 4 3,149 3,009 140 902,440
Idaho _ - 7 '285 246 39 101, 010
Illinois ... 4 11,908 7,411 4,497 5,345,831
Indiana _ __ - 5 3,693 2,183 1,510 2,626,316
Iowa 6 1,086 646 440 617,879
Kansas _ _ _ 5 1,050 900 150 677,076
Kentucky__ __ 37 8,512 7,976 536 2,935,699
Louisiana 2 '588 525 63 350,060
Maine -- 17 1,045 435 610 636,024
Maryland 6 L061 571 490 543,159
Massachusetts 13 6^ 436 3,966 2,470 3,247,771
Michigan __ . 9 8,171 5,671 2,500 2,388,546
Minnesota 11 3i 250 1,053 2,197 2,091,417
Mississippi 3 2,130 1,930 200 1,007,625
Missouri _ _ _ 36 17,350 13,709 3,641 8,410,179
Montana ___ _ _ 3 '272 '233 39 133,350
Nebraska _ 4 560 435 125 391,784
Nevada 3 635 155 480 252,400
New Hampshire _ 3 110 110 45,066
New Jersey _ . 41 6,711 3,179 3,532 4,593,339
New Mexico _ _ 14 2,001 1,496 505 978,046
New York. _ _ 28 2i;426 11,333 10, 093 11,838,796
North Carolina.. __ _. 9 5,394 3,585 1,809 2,382,225
North Dakota 8 670 '590 80 262,280
Ohio 26 12,417 8, 699 3, 718 6,389,185
Oklahoma _______ _____ 16 9i 808 8,182 1,626 3,025,026
Oregon. 29 3,439 2,951 488 1,282,300
Pennsylvania.— _ _ __ _ _ _ _ _ __ 30 10,384 8,001 2,383 5,411,592
Puerto Rico. __ 3 10,500 2,338 8,162 1,101,980
Rhode Island ___ 14 3,530 3,124 406 933,107
South Carolina _ 2 944 944 159,845
South Dakota. . _ _. 4 671 504 167 294,304
Tennessee _ 14 8,439 6,001 2,438 3,815,885
Texas _ 26 7i 209 6, 089 1,120 2,221,112
Utah 20 1,623 957 666 1,155,569
Vermont _ 2 759 739 20 305,433
Virginia _ _ __ 5 1,483 1,030 453 962,583
Virgin Islands
Washington _ _ 27 4, 751 3,312 1,439 2,474,772
West Virginia.. _ _ _ _ _ 17 8,711 6,237 2,474 3,284,845
Wisconsin. _ ______ _ _ _ 4 3,663 1,057 2,606 2,448,676
Wyoming _ _ _ _ __ _ _ 1 200 200 86,430
i Excludes three developmental projects, involving no enrollees, at a Federal cost of $66,229.
90
Appendix table 12.—Activities conducted under the Manpower Development and Training Act, August 1962-June 1965
Activity Fiscal year
1963 i 1964 1965
Projects approved _ _ _ 1, 603 2,662 3, 670
Institutional _ _ _ _
1, 468 114 21 1,898 721 43 2, 488 1,090 92
On-the-job training
Experimental and demonstration _
Trainees approved _
59,130 126,913 213,533
Institutional _______ __ _ ______ ___
56,883 1, 577 670 113, 537 10, 784 2,592 160,218 3 46,102 7,213
On-the-job training: Bureau of Apprenticeship and Training 2 Experimental and demonstration 4 Individuals approved for service in experimental and demonstration projects
13, 400 17,490 37, 587
1 Covers the months August 1962 through June 1963.
2 Approved for projects sponsored by the Bureau of Apprenticeship and Training.
3 Includes 4,302 persons approved for training as counselor aides under the Counselor-Advisor University Summer Education (CAUSE) program.
i Persons from experimental and demonstration projects approved for on-the-job training.
Appendix table?13.—Estimated costs of projects approved under the Manpower Development and Training Act, fiscal year 1965
Program Total Training Allowances Service
Institutional ______ $252,273,934 34,856, 072 16, 649,934 2, 790,417 $122,158,389 30,888,243 $130,115,545 3, 967,829
On-the-job training 1 ______ _
Experimental and demonstration $16,649, 934 2, 790,417
Mobility demonstration
All programs.. _ _ _
306, 570, 357 153, 046, 632 134, 083,374 19,440, 351
1 Includes estimated costs for persons from experimental and demonstration projects approved for on-the-job training.
91
LABOR-MANAGEMENT
SERVICES ADMINISTRATION
792-672—66—7
LABOR-MANAGEMENT SERVICES ADMINISTRATION
Several key labor disputes and significant actions relating to the various statutes administered by the Labor-Management Services Administration highlighted a year of intensive activity.
This marked the sixth year of administration by the Department of two disclosure laws in the fields of labor-management relations and employee welfare and pension benefit plans. Reports now on file in the Office of Labor-Management and Welfare-Pension Reports represent 53,000 labor organizations and 163,500 active employee-benefit plans, plus reports from labor consultants, some union officials, and employers. The Office continued an active program of technical assistance to bring about voluntary compliance with the two statutes. Through this method many disputed union elections were resolved without the need for corrective legal action. Highlighting the year’s activities in the Office were several key union elections requiring legal and administrative actions under the Labor-Management Reporting and Disclosure Act.
Studies relating to manpower utilization, job security, and work force characteristics of longshore workers in 10 east and gulf coast ports were completed by a special staff group assigned to the Assistant Secretary for Labor-Management Relations. The results of the studies were presented to representatives of the union and management for each port in a series of joint meetings. Reports of the findings for the individual ports were made available to the parties for use in negotiations. By March, agreements had been reached in all ports, and significant manpower utilization and job security changes were incorporated into the collective bargaining agreements for several key ports.
Executives of Federal agencies and leaders of labor organizations representing Federal employees are relying increasingly upon the Office of Federal Employee-Management Relations for aid in solving problems of appropriateness of the bargaining unit or of majority determinations in elections. Reliance upon this Office (which administers the Secretary of Labor’s responsibility under Executive Order 10988, Federal Employee-Management Cooperation) for appropriate advice on employee-management matters has substantially reduced costly arbitration procedures and encouraged the amicable resolution of questions in these areas.
Under revised and automated procedures the Office of Veterans’ Reemployment Rights has significantly reduced paperwork requirements of preservice employers of veterans, thus laying the groundwork for earlier and more harmonious return of the veteran to his former position. This new program has meant savings for the employer in time and letter writing and for the Govern
95
ment in reduced clerical expense, while at the same time assuring more personalized service for the returning serviceman.
The Labor-Management Services Administration has continued through the year to assist ad hoc Presidential boards and commissions where the Department’s services are required. Other activities include participation in or staff support for the President’s Advisory Committee on Labor-Management Policy, the President’s Maritime Advisory Committee, the Grievance Committee on Cargo Preference, and the Interagency Committee on Transportation Mergers; liaison and consultation with the National Labor Relations Board, the Federal Mediation and Conciliation Service, and the National Mediation Board; and carrying out the responsibilities delegated to the Secretary of Labor under the Urban Mass Transportation Act of 1964.
OFFICE OF FEDERAL EMPLOYEE-MANAGEMENT RELATIONS
The Office of Federal Employee-Management Relations performs under Executive Order No. 10988 the functions of the Secretary contained in section 11 of the order, including (1) handling agency or employee organization 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.
There has been a substantial increase during the year in the educational activities conducted by Federal agencies and labor organizations dealing with employee-management cooperation under the order. Conferences have also been held by bar associations and organizations of Federal personnel administrators to appraise how the order has worked since its signing on January 17, 1962, both to improve the lot of the Federal worker and to improve the quality of the public service.
Participation in these programs has been an important feature of the year’s activities by this office. During the year, advisory and technical assistance was provided to assist in the developing of sound principles and practices for meaningful, constructive employee-management relations in Federal agencies.
The result of general educational efforts related to the order are discernible in the decrease in the number of disputes which lead to requests for arbitrators, and in the overall stability of relationships between management officials and union representatives—an important indication that the overriding purpose of the order is being vindicated by increasing cooperation between Federal management and employees.
The Office processed 26 requests for the nomination of arbitrators filed by Federal agencies and employee organizations; 17 arbitrators were selected and 13 advisory decisions issued. Multiple requests involving the same installations were consolidated to avoid unnecessary costs or delays. This resulted in four requests for arbitration being considered in two proceedings.
96
A summary of an analysis of more than 200 bargaining agreements under the order by late summer 1964 was issued on the third anniversary of the order. (The complete analysis was to be released by the Bureau of Labor Statistics early in fiscal year 1966.) The summary showed that almost 600,000 Federal employees were covered by agreements representing 35 employee organizations. Many organizations were craft unions, representing skilled blue-collar Government employees; workers in the postal service make up about 75 percent of the total covered under all agreements. The findings reported in the summary indicate that the philosophy of good labor-management relations is being effectively and extensively carried out within the Federal Government.
OFFICE OF LABOR-MANAGEMENT AND WELFARE-PENSION REPORTS
The Office of Labor-Management and Welfare-Pension Reports (LMWP) administers those sections of two statutes for which the Secretary of Labor has enforcement responsibility. One is the Labor-Management Reporting and Disclosure Act. The other is the Welfare and Pension Plans Disclosure Act.
The two statutes require reporting by unions on their financial transactions and, under some circumstances, by employers and labor relations consultants, and union officers and employees. Administrators of private welfare and pension plans are required to file descriptions of plan provisions, and annual financial reports for public information. With both disclosure laws, the Department emphasizes voluntary compliance.
Compliance and technical assistance activities are directed by 5 regional offices through a field staff assigned to area offices located in 24 cities. Field activities are further decentralized through 12 resident offices, where a compliance officer is assigned to make the agency’s services more accessible. A new resident office was opened during the year at Houston, Tex.
In addition to other technical assistance activities, staff personnel in field offices answered 96,360 mail, telephone, and in-person inquiries and made 7,901 contacts, consisting of staff-initiated visits to persons in organizations affected by the statutes, to offer assistance or information and publications concerning the two laws.
Labor-Management Reporting and Disclosure Act
In the sixth year of the administration of the Labor-Management Reporting and Disclosure Act, the number of active labor organizations filing reports with the Office increased to nearly 53,000.
This year, 1,675 unions filed initial reports, and 975 termination reports were received. (See table 1.)
Public disclosure files of labor and management reports are maintained in the 24 LMWP area offices as well as the national office.
In a continuing effort to promote understanding of the act’s requirements, LMWP conducted 100 workshops and meetings on union reporting, election
97
provisions, and employer and consultant reporting requirements. These were attended by 2,500 persons.
LMWP staff participated in 100 union conventions and an additional 135 union meetings and conferences, providing speakers and pamphlets and other educational material relating to the act. Publications and technical assistance aids also were 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.
Special financial reporting clinics were conducted at the request of several unions for the purpose of identifying common reporting errors by affiliates of the unions involved, in order to prevent recurring mistakes and eliminate the necessity of filing corrected reports.
A major part of compliance and enforcement activity has been administration of election requirements. The Department investigated 146 union elections, which included 99 election cases opened in fiscal 1965 and 47 cases pending from fiscal 1964. Fifteen cases involved national or international unions. Of the election cases closed, 33 were closed after no violations were found, or if the complaint was untimely, or for other reasons. In 25 cases, violations were found not to have affected the outcome; voluntary compliance was achieved in 16 and civil actions were filed in 12 cases.
The Department has conducted numerous investigations into violations of election provisions since the statute was enacted 6 years ago. A study of 355 election cases where violations were confirmed revealed 29 types of violations. Most frequent violations were lack of proper election notice (72), failure to follow the union’s constitution and bylaws (68), improper safeguarding of ballots (59), allowing persons of questionable eligibility to vote (47), and failure to preserve ballots for a year (43).
Through June 30, 1965, LMWP obtained voluntary compliance in 119 election cases. Rerun of the disputed elections accounted for settling 56 of these cases, while other corrective action was taken by the unions involved in the remaining 63 cases. Also, LMWP supervised an additional 34 court ordered election reruns.
LMWP investigated the 1964 mail ballot election for the presidency of the International Union of Electrical Workers (IUE) in which Paul Jennings opposed incumbent James B. Carey. The ballot count as announced by the tellers gave the election to Carey by about 2,000 votes. Acting on notice of irregularities, charged by Jennings in a court proceeding, the Secretary initiated an investigation which revealed that Jennings had won by more than 20,000 votes. Following announcement of LMWP’s ballot count, Carey resigned and Jennings was installed as president of the IUE.
Department representatives, by agreement of the contending national officer slates in the United Steelworkers election, observed the tellers’ tally of the ballotcounts submitted by more than 3,000 Steelworker locals. They also traveled several weeks with the tellers to attend hearings on election protests within the union. Upon completion of the hearings, the tellers announced that Secretary-Treasurer I. W. Abel had defeated incumbent David J. McDonald for the presi
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dency by a margin of about 10,000 votes. Over 600,000 members had cast ballots in the election.
Of 74 persons indicted for criminal violations during the year, 68 were charged with embezzlement. Many of the 68 were also charged with related violations of title II, such as false reporting, making false entries in union records, failing to keep records, and so forth. Six persons were charged with title II reporting violations.
Eighty-six persons were convicted on criminal charges—67 for embezzlement or embezzlement and reporting violations, 10 for violating title II reporting requirements, and 9 for conspiracy to violate the act.
In one embezzlement case, a former vice president of the International Brotherhood of Operative Potters was sentenced to 2 years’ imprisonment after he pleaded guilty to embezzlement of $16,700. This was part of a 12-count indictment charging a $40,400 embezzlement.
The first criminal action brought under the act’s provisions on trusteeships was concluded January 14, 1965, when a former union officer pleaded guilty to falsifying union trusteeships records and embezzlement.
There were 52 investigations of alleged trusteeship violations during fiscal year 1965. Several parent unions lifted trusteeships after being advised that continuance might lead to litigation.
In a civil action filed December 15, 1964, the Secretary charged that continuance of six long-term trusteeships by the United Mine Workers of America (UMWA) was not necessary for a purpose allowable under the act. The trusteeships—over six UMWA districts—have been in effect since the UMWA suspended their autonomy more than 20 years ago.
The first Supreme Court interpretations of LMRDA provisions were handed down during the year. In U.S. v. Brown, the Court declared unconstitutional the section 504 provision which imposes criminal sanctions on Communist Party members or former members for holding union office. In Musicians v. Wittstein, the Court held that ballots cast at an international union convention for an increase in the members’ per capita payments may be weighted by the number of members represented by each voting delegate. The decision reversed lower court rulings that section 101(a)(3) permitted each delegate to cast only one vote.
In cases heard by other courts, the scope of the Secretary’s investigatory authority under section 601 was clarified by rulings which held that: (a) his authority to investigate a union election and subpena election records is not conditioned upon his receipt of a section 402 complaint from a union member; (b) he may investigate a union election after the time has passed for filing suit to invalidate the election; and (c) even though he has no enforcement powers over section 501(a) provisions, the Secretary may investigate alleged violations of that section and may disclose the results of his investigation to “interested persons,” including the complaining union members.
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Welfare and Pension Plans Disclosure Act
Now on file at LMWP, which administers the statute, are copies of some 163,500 active private employee-benefit plans.
Through printed materials and replies to individual inquiries, as well as a direct contact educational campaign with a series of meetings, the Department has helped plan administrators and others understand the requirements of the law.
A pamphlet was issued, “Rights of Pension Plan Participants,” which encourages participants and beneficiaries to examine their plans well in advance of retirement so that they can protect their rights and plan intelligently for retirement. Over 100,000 copies have been distributed.
Clinics describing the act’s coverage and the reporting and bonding requirements were held in 62 cities and were attended by 5,000 persons representing the insurance industry, employer groups, labor unions, and financial institutions, and including attorneys, accountants, actuaries, and others engaged in the employee-benefit field.
The Advisory Council on Employee Welfare and Pension Benefit Plans, established by section 14 of the act, held two meetings during the year. The 13-member council includes representation from the insurance and corporate trust fields, labor, management, and other groups interested in welfare-pension activities. Three 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 9,400 new plan descriptions, 30,200 amendments to plan descriptions, and 118,000 annual reports.
Visitors to the Department’s Public Document Room numbered 1,470. They examined a total of 24,690 welfare and pensions plans. Over 38,000 pages of reports were reproduced for sale. (See table 2.)
In the vast majority of cases, compliance with the act is obtained voluntarily. Since June 18, 1962, when the Secretary of Labor was granted limited enforcement powers, cases have been opened on 2,078 alleged violations, 504 of them in the past year. Sixty-nine percent involved failure to file reports. Most of the cases originated from the reports processing and audit programs.
Plan administrators generally are willing to take corrective action when delinquencies or deficiencies are pointed out. Compliance is sought chiefly through correspondence and individual contacts. Of 1,436 alleged violations consisting of failure to file reports since 1962, 1,358 have been closed. Of these, compliance was obtained in 980 instances; the remaining 378 were closed by reason of lack of coverage, absence of violations, or termination of the plan.
In 98 instances—40 during this year—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-
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third of the certifications have cleared up questions and made investigations unnecessary.
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 38 participants since 1962 alleged that administrators denied them their disclosure rights, investigations revealed that in 24 instances there was no violation of the act. In 11 cases, administrators agreed to make disclosure, and the remaining three allegations are under investigation.
Several hundred requests have been received from participants and beneficiaries asking for help in collecting welfare-pension benefits. Since the Secretary is not authorized by law to regulate or intervene in the management of benefit plans, the Department informs the petitioner that it cannot help him. In most instances the requests provide no basis for undertaking an investigation of the plan.
In March 1965, the U.S. District Court for Eastern Pennsylvania ruled in favor of the Government when it held that Gulf Oil Corporation was the administrator of a hospital-medical program serviced by Blue Cross-Blue Shield. Gulf contended that it acted merely and only as remitting agent for the premium payments which initially were paid entirely by the participating employees but later were partly paid by Gulf. Based on this and other activities by Gulf, the court ruled that within the meaning of the act, the Gulf program was an “employee welfare benefit plan,” that Gulf established the plan and is the plan administrator and as such must comply with the act’s reporting and disclosure requirements.
Since 1962, 44 alleged violations of title 18 amendments (embezzlement, false reporting, and kickbacks) have been referred to the Department of Justice. In 23 instances, that Department determined that insufficient grounds existed to support prosecution.
Six persons have been indicted in Federal courts for the embezzlement or misappropriation of plan funds, in violation of section 664, title 18, of the U.S. Code. One of the cases, under agreement with Department of Justice, was investigated by the Department of Labor. The indictment charged the defendant with embezzlement of approximately $6,500 after June 18, 1962 (investigation indicated a total shortage of approximately $25,000). After presentation of the Government’s case, the defendant changed his plea to guilty to two counts of embezzlement of union welfare funds, $434.92 on the first count and $3,845 on the second count. A sentence of 2 years’ imprisonment on each of two counts was suspended and the defendant was placed on 2 years’ probation.
Of the five other indictments, three ended in convictions based on investigations by the Department of Justice. One case was dismissed when the defendant committed suicide 3 months after being indicted. The remaining indictment was pending at the end of the year.
Regarding interpretations of the act, a number of determinations were made. Examples are the determination that a program under which an employer buys an insurance policy covering all workers and directors against accidental death
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or dismemberment while traveling for the company is an “employee benefit plan” as defined by the act; that a contingency fund providing such amenities as sending flowers to the family of the deceased is not an “employee welfare benefit plan,” nor is a sick leave program providing a yearly lump sum payment to certain employees, irrespective of whether they were ill or injured; and that the ownership by a foreign government of 51 percent of the share capital of a corporation does not exempt the firm’s benefit plan from the act’s jurisdiction.
During the year, 120 administrative rulings in the area of bonding were issued, involving a variety of principles of significance to plan administrators and to the insurance and surety industry.
A proposed revision of the Annual Report Form D-2 was released to the gen* eral public for comments by notice in the Federal Register on June 2, 1965. At the close of the fiscal year, comments received on the proposed revision were being evaluated by staff members.
Table 1.—Labor-Management Disclosure Filings, June 30, 1965
Type of report Fiscal 1965
Labor organization information report (form LM-1) Labor organization financial reports: 1,675
Labor organization annual report (form LM-2) Labor organization annual report (form LM-3) 11,720 39,975
Trusteeship reports: Initial trusteeship report (form LM-15) Semiannual reports Terminal trusteeship information report (form LM-16) Labor relations consultant reports: 145 385 135
Agreement and activities report (form LM-20) Receipts and disbursements report (form LM-21) Employer report (form LM-10) Labor organization officer and employee report (form LM-30) Active labor organization reports on file June 30, 1965 Public Document Room: 85 15 320 160 52,908
Number of visitors Number of union reports examined Copies of filings furnished on reimbursable cost basis: 1,879 21,653
Number of pages Number of union reports utilized 50,095 5,739
Table 2.—Welfare and pension benefit plans activity report, June 30, 1965
Activity Fiscal 1965
Filings received—total Plan descriptions Amended plan descriptions Annual financial reports (D-2) Information report for small plans (D-3) Public Document Room: 157,420 9,390 30,210 65,520 52,300
Number of visitors Number of plans examined Copies of filings furnished on reimbursable cost basis: 1,470 24,690
Number of pages Number of plan filings utilized 38,380 6,050
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OFFICE OF LABOR-MANAGEMENT POLICY DEVELOPMENT
The Office is the research and policy development arm of the Department in the labor-management area. It carries out the Department’s research requirements under the Labor-Management Reporting and Disclosure Act and the Welfare and Pension Plans Disclosure Act. It performs similar research concerning the administration of the functions of the Secretary of Labor under Executive Order No. 10988 and provides guidance to the Labor-Management Services Administrator on basic labor-management policy matters.
In the January 1965 issue of Monthly Labor Review, an analysis of election complaints appeared under the title “Election Challenges Under the LMRDA.’ The article was based on a study made by the Office of all local union officer election complaints investigated by LMWP from October 1959 through April 1963. It reviewed the extent and type of violations found by LMWP during the first 3/2 years of the act’s operation, reflecting the steadily rising trend of valid election complaints over this period. Of 741 allegations of illegal election practices included, the article charted some 14 different kinds of complaints, examining the frequency of the complaint types in determining the need for further investigation. Characteristics of elections studied showed over two-thirds of the local elections in which violations were alleged were conducted by voting at polls, with the remainder divided between membership meetings and mail referendum. The article also dealt with the kind of supervision provided for local elections and the method by which LMWP proceeded to verify challenged elections and to bring about a rerun election under democratic procedures where it was shown the verified complaint would have affected the outcome.
At the end of the year, an analysis was published of the changes made in national union rules concerning the election of local officers since passage of the Labor-Management Reporting and Disclosure Act. Titled “Union Constitutions and the Election of Local Union Officers,” the analysis covered 73 national labor organizations with a total membership of nearly 16 million.
The study showed that 67 of the 73 large national unions included in the analysis regulate in some way the election of local officers through a national constitution, but none provide complete directions for the conduct of local elections. Since the passage of the act, 54 major national unions, having a combined membership of over 13 million, had changed their constitutional rules on local elections, and most in doing so had brought about conformity with one or more of the act’s requirements.
While amendments to union constitutions are viewed by the Labor Department as an indication of intent to comply with the act, absence of provisions bringing union rules in line with the statute does not reflect noncompliance. This is true, the study recognizes, since election requirements in the Labor-Management Reporting and Disclosure Act are applicable even where the constitution does not provide for it.
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The Office provided considerable assistance during the year to the Office of the Solicitor in connection with a number of civil actions brought against labor organizations under title IV of the LMRDA because of serious election irregularities which were not voluntarily remedied by the unions involved. The court exhibits and other information developed by the Office have proven to be of valuable assistance in litigation.
There is a continuing interest in the welfare-pension plans field, intensified by the report during the year of the President’s Committee on Corporate Pension Funds and Other Private Retirement and Welfare Programs. The Office carries on a continuing program of research and analysis as an adjunct to administration of the Welfare and Pension Plans Disclosure Act by LMWP, and at the end of the fiscal year was participating substantially in a task force composed of representatives of the two offices in a joint review of research requirements relating to the act.
OFFICE OF VETERANS’REEMPLOYMENT RIGHTS
The Office of Veterans’ Reemployment Rights administers that portion of the Universal Military Training and Service Act which assures the ex-serviceman, reservist, or National Guardsman the right to return to the position he left to go into service without loss of benefits he would have enjoyed had he not gone. Most of the activity of the Office is devoted to promoting compliance with the statute, determining the rights of individual servicemen, and negotiating on their behalf with their former employers.
This is the first full year in which centrally automated procedures have been used to reduce the clerical and paper work done in field offices, and there is proof the new method is both effective and economical.
For many years, the Department of Defense has cooperated through each branch of the Armed Forces by passing out reemployment rights information at separation centers and by sending OVRR field offices facts on the prior employment of servicemen about to be discharged. In this way something over half of all separatees are alerted to Federal reemployment rights legislation. Using this information, OVRR field offices would in the past write the employer of the prospective return of his onetime employee, ask for an indication of his intent with respect to his reemployment, and offer its services in connection with any questions he might have. While this method was effective, it placed a clerical burden upon field offices and elicited a response from many employers who had reemployed the veteran and had no questions on the other benefits to which he might be entitled.
Under revised procedures instituted at the beginning of fiscal year 1965, OVRR alerts the employer of the veteran’s release from the Armed Forces as heretofore, but the employer is given more lead time to arrange for personnel adjustments, is supplied with general information regarding his obligation, and is not requested to contact OVRR unless reemployment is denied or he has a question
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on the extent of his obligation under the law. If the veteran does not apply for reemployment within the prescribed period after his release from service, the employer may remove him from his rolls and will have no further obligation to him.
During the current fiscal year, Defense Department separation centers have directed to the OVRR national office information on the preservice employment status of 226,658 persons returning to civilian life. Through machine processing, letters and informational material are ready for mailing within 2 days to the former employer and to the veteran. In a very practical way, the procedure promotes almost immediate contact with ex-servicemen and their former employers and holds a promise of twice the output at no extra cost should the units of information from separation centers increase. Early advice to employers is designed to prevent delays that frequently result in damage claims to compensate for wages lost, speed up the veteran’s return to gainful employment, and reduce the number of claims under the unemployment compensation program for ex-servicemen.
By the end of the year, realistic economies had resulted from the program and it was found possible to reduce the field clerical staff. Action was also being taken to consolidate certain field offices to make for a broader availability of professional people where the need for these services was greater.
The Supreme Court’s decisions in two cases decided in February 1964 (Tilton v. Missouri Pacific Railroad, 84 S. Ct. 595, and Broods v. Missouri Pacific Railroad, 84 C. St. 578) have produced certain notable results involving a host of other employment benefits for ex-servicemen. The decisions dealt with the seniority rights of four veterans who had left their jobs for military service before they completed their employment training. The Supreme Court said that while the Universal Military Training and Service Act did not guarantee to the returning veteran an immediate promotion upon completion of his military service, once having completed his employment training the employee could insist upon a seniority date which took into account the time spent in military service. During the current year, the cases resulted in a substantial number of statutory claims being voluntarily settled through negotiation and adjustment.
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BUREAU OF EMPLOYEES’ COMPENSATION
BUREAU OF EMPLOYEES’ COMPENSATION
The Bureau of Employees’ Compensation administers workmen’s compensation laws for employment coming within Federal jurisdiction, including the Federal Employees’ Compensation Act of September 7, 1916, Longshoremen’s and Harbor Workers’ Compensation Act, approved March 4, 1927, District of Columbia Workmen’s Compensation Act, Defense Bases Act, Outer Continental Shelf Lands Act, and Nonappropriated Fund Act. Benefits under the Federal Employees’ Compensation Act also extend to special groups such as members of the Reserve Officers Training Corps, Peace Corps volunteers, and Job Corps enrollees, as well as certain other groups.
During 1965, reports of 236,527 injuries were received, distributed as follows:
Civilian Federal employees.......................................... 111,079
Longshoremen and harbor workers..................................... 81, 758
District of Columbia private employees.............................. 31, 815
Nonappropriated Fund employees...................................... 5, 104
Defense base workers................................................ 3,971
Outer Continental Shelf workers..................................... 2,800
The precise number of workers covered in the event of a work injury is not known but is believed to be approximately 3.3 million, of which a known 2.5 million are civil employees of the Federal Government and 277,000 are employees of private industry in the District of Columbia.
There was a 1.3 percent increase in the number of injuries reported under the civilian Federal employee coverage, while in private employment coverage there was a noteworthy increase averaging nearly 7 percent. Mounting costs were discernible in most areas, with $73.5 million expended for the Federal act coverage and $25.2 million for the closed-case private employment coverage. 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, 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 last half of the year disclosed that 76.3 percent of the claims were certified for payment within 5 workdays after reaching the
792—672—66'---8
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local district claims branch, comparing favorably with 75.8 percent recorded for the same period in 1964.
FEDERAL EMPLOYEE INJURIES
The 111,079 work injuries reported by civilian Federal employees in fiscal 1965 established a 19-year record high. The total was 12.0 percent higher than the average of 99,138 cases for the current 3-year base period of 1957-59. The 337 deaths reported, however, were 51 less than the year before, while schedule awards for permanent injuries were practically unchanged in number, with a total of 1,967 for the year. Although white-collar and clerical-type occupations predominate in the 2.5 million civilian Federal employment, there is a hardcore 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, metalworks, aircraft repair, and electrical installation and maintenance.
An actuarial study made by the Bureau during 1965 on the casualty rates incurred in the previous year indicates areas of significant improvement. Reports received showed 40,546 disabling injuries. The frequency rate of such injuries declined to 7.7 per million man-hours of exposure, the lowest recorded in nearly a decade, while the severity rate dropped moderately, from 522 days chargeable per million man-hours in 1963 to 516 in 1964. The number of occupational fatalities was reduced by 18 since 1963.
Altogether, 105,976 alleged work injuries were reported as having occurred during the year, and the total direct incurred cost mounted to $39.0 million for these cases, up $1.4 million from the previous year. Equivalent to $15.38 per covered employee, this is the highest cost recorded, although relative to payroll it is practically unchanged from a decade ago. During the year, an ultimate loss of 2,718,479 potentially productive days was suffered, down nearly 2 percent from 1963.
Among the executive departments and independent agencies with more than 10,000 employees the following notable improvements in excess of 5 percent over the previous year are recorded, frequency-wise. These establishments employ over 60 percent of all Federal civil employees. percenf reduction in
Establishment frequency
Department of the Interior......................................
Housing and Home Finance Agency.................................
D.C. Government.................................................
Department of Agriculture.......................................
Department of the Army..........................................
Department of Justice...........................................
Post Office Department..........................................
Department of the Air Force.....................................
General Services Administration.................................
rate
17.9
14.7
12.5
11.7
10.2
8.5
6.4
6.4
5.3
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Because the Post Office Department has the highest frequency rate among the executive departments and accounts for nearly half of all disabling injuries, it is significant to note that improvement during 1964 in the frequency rate was achieved by 11 of the 15 postal regions, with New York, Memphis, and Philadelphia each down more than 10 percent.
During the fiscal year 1965, nearly 145,000 cases were serviced, providing medical, hospitalization, and surgical care, disability compensation, vocational rehabilitation, attendants’ allowances, survivors’ benefits, and burial expenses. The largest expenditure was for disability compensation for regular civilian Federal employees, amounting to $35.0 million, nearly 48 percent of the $73.5 million disbursed. Death compensation of $25.5 million, or 35 percent of the total, consisted of $13.9 million for families of military reservists and $11.6 million for families of fatally injured civilian employees. Medical treatment and supplies for regular Federal employees cost $11.0 million, or 15.0 percent of the total. Practically all of the other disbursements were for cases involving groups to whom the law was extended, principally for the remaining emergency relief cases of the 1930’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 1965 highlights some causal and concomitant growth factors related to this cost, which has spiraled nearly 20 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 30 percent. The annual total of cases reported has climbed significantly, up 12 percent. The cost of providing medical treatment, hospitalization, and allied restorative supplies and services has mounted by more than 45 percent, and the annual number of medical payments by 33 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 $650, up 33 percent. Comparable studies for approved fatal cases show an increase in liability of 37 percent, from an average of $48,879 in the base period to the current figure of $67,037.
During the year, medical care facilities of the U.S. 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. During the past 5 years, more than 500,000 employees have received care extending beyond first aid and more than $50 million has been expended from the compensation fund to provide them with complete medical treatment, including hospitalization and allied restorative supplies and rehabilitation services. In 1965, nearly 155,000 payments were made covering such care. Recently the Bureau conducted a study of 3,550 hospitalized cases to determine the medical care pattern. This study reflects the fact that Federal Government medical facilities continue to be a significant source of care for
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civil employees injured at work. Federal facilities serviced 34 percent of the cases and provided nearly 50 percent of the hospitalized days care.
For the third consecutive year, there was an increase in the number of severely injured employees returned to gainful employment through vocational assistance. By the end of the year, 450 injured employees who had accepted available rehabilitation service completed vocational programs which resulted in the restoration of their loss of earning capacity or the major portion of it. These were beneficiaries under both the Federal Employees’ Compensation Act and the private employment acts subject to Federal jurisdiction. Retraining programs were entered and completed by 130 of the rehabilitated claimants. The remaining 320 beneficiaries were assisted in being restored to productivity in suitable employment with the aid of job counseling through the Bureau’s rehabilitation advisers and through the cooperative placement services of the State employment and rehabilitation personnel and other governmental establishments.
At the close of the year, 213 beneficiaries were taking approved vocational training courses under the sponsorship of the Bureau, and there were 1,082 claimants with whom vocational planning was already initiated and had reached various stages of the rehabilitation process.
During the year, the Bureau paid compensation benefits in the sum of $32.6 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 1967 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 fourth full fiscal year under this law, and the amount for 1965 is 22 percent more than that for 1964. Total billings to June 30, 1965, under this provision amount to $96.1 million. The economic impact of these work injuries is therefore reflected directly in the operating costs of the various Federal departments and agencies.
PRIVATE EMPLOYMENT INJURIES
The U.S. Supreme Court in 1962 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 increased 142 percent. Work injuries reported to the Bureau of Employees’ Compensation by longshoremen doing offshore stevedoring decreased during the year to a level significandy
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below what it was prior to 1960. During 1965, a total of 81,758 cases was reported by longshoremen and harbor workers. Evaluation of cases closed under this act, excluding medical costs, amounted to $18.7 million. At the end of the year, 16,722 cases remained open, 6,155 of which were being paid compensation. The remaining 10,567 were awaiting more complete information, investigation, formal hearings, court action, third-party settlements, and similar administrative action. There are presently 296 insurance companies approved to write compensation coverage under this act and 215 employers allowed to self-insure.
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 31,815 cases reported during 1965, 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 1964 1965 Percent change
Construction . _ 9,084 7,211 6,387 3,374 2,028 1,451 926 762 510 353 219 8,369 7,237 6,772 3, 255 2,176 1,298 886 850 528 322 122 -7.9 +• 4 +6.0 -3.5 +7.3 -10.5 -4.3 +11.5 +3.5 -8.8 -44.3
Retail trade _ _
Services ___
Manufacturing
Wholesale trade _ _
Transportation-_ _
Electric, gas, sanitary services _ ___
Realestate _
Communication _ _ _
Finance; insurance _
No jurisdiction __ __
Total. _
32,305 31,815 -1.5
Cases closed during the year, exclusive of medical cost, are evaluated at $3.2 million, 28 percent above the average for the previous 3-year period. On June 30, 1965, there were 1,138 employees receiving disability benefits and 299 families of fatally injured employees receiving survivors’ benefits. There are 168 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 3,971 injuries this year, 23 percent more than in 1964; (2) employees on the Outer Continental Shelf, exploring and developing natural resources, nearly 3,000 of whom were injured, up 40 percent; (3) civilian employees working at certain military post exchanges, motion picture services, and related activities paid from nonappropriated funds, with 5,104 injuries reported, 17 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.
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The professional task of determining the precise merits of all these injury cases entails considerable administrative work. During 1965, there were 34,191 personal interviews with claimants and employers, or their representatives, 13,132 informal conferences relating to claims, 3,332 independent medical examinations, and 452 formal hearings completed. On June 30, 1965, there were 8,759 families or individuals receiving compensation benefits, 5 percent less than at the close of the year before. Included are 1,222 families of fatally injured workmen.
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Table 1.—Operations under the Federal Employees’ Compensation Act,1 July 1, 1960, to June 30, 1965
Fiscal year IO o 2 110,742 337 111, 079 112 2, 534, 976 7.69 516 $0.25 $15.38 111,079
o CT r—I 109, 235 388 109, 623 111 2, 518, 540 CT g C<1K S3 WrHO® o* >or."w 109,623 |
CO co CT 108,862 351 109, 213 110 2, 524, 030 83^3 ^35'*°’' 8 CM* 109,213
C-l co CT r—i 105, 635 405 106, 040 107 2,479,558 8.03 539 $0.24 $14.35 106,040 |
CO CT r-4 104, 295 378 104, 673 106 2,412,891 8.36 594 $0.26 $14.74 104,673
Average 1957,1958, and 1959 § 2° gf 2,405,689 i§§ rH'cfo>o* ro COU5W w w 1 00 r-< 00 co co of CM CO 125,448 89,089 33,350 5,122 2,992 5,320 135,873
117,529 116 aW"4*' 117,529 gcooi-cC^ 121,870
§ 109,783 214 109,997 109 109,997 114,657
i s s 89,234 95,094
ss s s- g§ 861‘88 96,154
1957^1958, and 1959 100,997 193 ss § i SS8’“ 100,775 | i 104,202
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25, 208,172 282^° 3 s-- I 22 * £ 2S22
2^ 19,511,267 2 - £ g$2§g 2S2-
oo-ci^ 17,864,635 USS*™ S r—< 3 §2 - £
g^3§ 2-- 17,194,333 § Bss 2^' 3 iS g?
“§§§§ £WM 2^ 16,675,551 £5333° £ ms T—1 § §2 ggggs
5- 13,807, 080 S305” 3 s §!g2S
Evaluation of cases closed (excluding medical): Loneshoremen’s and Harbor Workers’ Compensation Act District of Columbia Workmen’s Compensation Act Defense Base Act Outer Continental Shelf Lands Act Nonappropriated Fund Act I D. Number of fatal awards made during the year: jL/ongsnoreiiieii aim naiuui District of Columbia private employees DofonQo hncb wnrkbrq . Outer Continental Shelf Lands Act workers Nonannronriated Fund Act workers i E. Number of cases still active: Longshoremen and harbor workers District of Columbia workers Defense base workers Outer Continental Shelf Lands Act workers Nonappropriated Fund Act workers Tnt.d 4 F. Kind of insurance coverage: Insurance companies: juongsiioremen s ana jaai uui yvuiavio nut District of Columbia Act Defense Base Act + CLnlfTanrle Ant 'JULC1 VJ-LbULLOXJ.VCbJ. kJXXCXl JU CULL 14 xivu. Nonappropriated Fund Act Self insurers: , > District of Columbia Act Defense Base Act Outer Continental Shelf Lands Act Nonappropriated Fund Act
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Table 3.—Appropriations and expenditures, fiscal years 1961-65
Period covered Salaries and expenses Compensation benefits
Total funds available Total expenditures, all acts, including estimated obligations Net expenditures, Federal act, including estimated outstanding liabilities at end of the fiscal year Total funds available Net expenditures
Year ending June 30: 1961 $3,702,200 4,133,057 4,329,630 4,639,000 *4,460,150 $3,701,537 4,122,878 4,329,383 4,636,452 *4,444,837 $2,238,219 2,610,760 2,728,738 2,899,591 2,987,558 $63,000,000 64,000,000 68,149,685 72,000,000 73,500,000 $62,175,949 63,995,330 68,134,584 71,994,147 73,464,167
1962
1963
1964
1965
‘Excludes funds made available to the Employees’ Compensation Appeals Board.
Table 4.—Trust fund accounts for fiscal years 1961-65,* Longshoremen’s and Harljor Workers’ Compensation Act
1961 1962 1963 1964 1965
Balance, July 1 Receipts, fiscal year $691,717.27 25,327. 47 $591,180.53 25,842.83 $590,182.49 29,857.04 $475,448.31 26,286.28 $415,414.99 21,327.24
Total 717,044.74 617,023.36 620,039.53 501,734.59 436,742.23
Expenditures: Purchase premium Purchase accured interest Repayment to insurance carrier Compensation, section 8(f) Compensation, section 8(g) Prosthetic appliances Defaulted payments, section 18(b) Reimbursement to salaries and expenses. Loss on sale of securities Unaccrued investment yield on redeemed securities. 890.00 3,468.44 17,785.54 8,052.31 92,747.12 2,920.80 3,747.60 18,817.03 3,876.24 7,147.95 17,636.93 5,679.54 “112,860.00 1,266.80 3,820.31 16,303. 66 6,243.13 60,000.00 -47.50 10,277.86 22,743.93 5,174.80 5,590.00 62,100.00 3,529.07
Total 125,864.21 26,440.87 144,591.22 86,319. 60 109,415.66
Balance, June 30 591,180.53 590,582.49 475,448.31 415,414.99 327,326.57
‘Adjusted through June 30, 1964. “For fiscal years 1962 and 1963.
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Table 5.—Trust -fund accounts for fiscal years 1961-65, District of Columbia Compensation Act
1961 1962 1963 1964 1965
Balance, July 1 Receipts, fiscal year $129,040. 70 9,557.96 $133,298.98 9,691.84 $139,001.09 8,881.16 $139,462.62 7,499.44 $135,182.98 6,491.16
Total 138,598.66 142,990.82 147,882.25 146,962.06 141,674.14
Expenditures: Compensation, section 18(b) Compensation, section 8(g) Compensation, section 8(f)(1) Prosthetic appliances Transportation _ _ 577.72 292.86 4,375.70 533.28 1,235. 38 2,208.94 488.84 1,443.24 2,819.15 3,668.40 6,859.36 635.71 382.43 3,901.58 2,933.28 200.00 2,401.28 3,700.42
Purchase accrued interest
Discount on purchase of investments..
Purchase premium.. 53.40 12.13
Total 5,299.68 3,989.73 8,419.63 11,779.08 9,234.98
Balance, June 30 133,298.98 139,001.09 139,462.62 135,182.98 132,439.16
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EMPLOYEES’ COMPENSATION APPEALS BOARD
EMPLOYEES’ COMPENSATION APPEALS BOARD
The Employees’ Compensation Appeals Board is a three-member quasijudicial body that hears and decides appeals in cases under the Federal Employees’ Compensation Act for work-related injury or disease.
The act is applicable to civilian employees of the U.S. Government, District of Columbia Government (except members of the police and fire departments), Canal Zone Government, Panama Canal Company, and others. The administration of the Compensation Act is generally vested in the Bureau of Employees’ Compensation. For employees of the Canal Zone Government and the Panama Canal Company, however, it is administered by the Governor of the Canal Zone.
The Board was created July 16, 1946, as an independent body to review final decisions of the Bureau of Employees’ Compensation by Section 3, Reorganization Plan No. 2 of 1946 (60 Stat. 1095). On August 30, 1964, Public Law 88-508 (78 Stat. 666) granted employees of the Canal Zone Government and the Panama Canal Company a similar right of appeal from final decisions of the Governor of the Canal Zone.
The Board began the fiscal year with 124 cases. A total of 320 appeals were filed and 347 cases were closed, leaving 97 cases at the close of the year. Sixty-one of these 97 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 36 cases ready for Board action, 22 had been “decided” in executive session and were in the process of preparation of opinion. The average time lapse between the date of filing of appeal to the date of closing was 5.3 months, about the same as in the previous year.
The Board’s operations are the most current in its history. The 97 pending cases is the lowest figure since 1949, at which time it was also 97. In fiscal years 1947, 1948, 1949, there were only 64, 133, and 111 appeals respectively, and pending cases at the end of such years progressively increased. Appeals in recent years have been in excess of 300.
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BUREAU OF INTERNATIONAL LABOR AFFAIRS
BUREAU OF INTERNATIONAL LABOR AFFAIRS
The international activities of the Department of Labor continue to grow in response to the increased recognition of labor and manpower factors as significant components in the conduct of U.S. foreign affairs.
The Department’s activities in the international field are directed and coordinated by the Assistant Secretary of Labor for International Affairs, and are primarily 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, together with the Bureau of Labor Statistics, on worldwide labor and manpower 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 the 1965 fiscal year, the Secretary entered into an interagency agreement with the Agency for International Development establishing the Department of Labor International Technical Assistance Corps (DOLITAC)—a group of labor and manpower experts exclusively concerned with technical assistance work abroad upon whom AID and other foreign affairs agencies might call for service in the less developed countries.
In th field of foreign economic policy the Bureau’s activities have been substantially increased through its participation on U.S. delegations and interagency committees concerned with the General Agreement on Tariffs and Trade (the Kennedy Round).
POLICY FORMULATION
Labor and manpower considerations are often pertinent to political, economic, and social developments abroad, and must be carefully weighed in the formulation and execution of U.S. foreign policy. The Bureau’s area specialists follow labor developments in other countries, reported primarily by U.S. labor attaches stationed abroad, and provide staff work for the preparation of departmental recommendations for the consideration of foreign affairs agencies concerned with this country’s objectives in the field of international affairs.
Of major importance were proposals made to the Department of State on labor aspects of National Policy Papers for selected countries. Department
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recommendations also involved U.S. positions in regard to current labor problems affecting this country’s relations with other lands.
The Bureau assisted in formulating labor programs under AID sponsorship for specific developing countries.
Briefings were arranged for Americans interested in labor abroad, particularly trade union officials and U.S. officers to be assigned overseas.
The Bureau participated, as in the past, in such international meetings as the 49th International Labor Conference, the 19th session of the U.N. General Assembly, the 37th session of the U.N. Economic and Social Council, and sessions of the Manpower and Social Affairs Committee of the Organization for Economic Cooperation and Development. Bureau specialists served on assignments in Africa, Latin America, Europe, the Near East, and the Far East.
RESEARCH AND PUBLICATIONS
The Bureau of International Labor Affairs follows activities in the field of international trade union developments. It 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 worker-oriented organizations in less developed countries; compiles and processes biographic material on foreign trade union leaders which is not generally elsewhere available in U.S. Government agencies; and maintains liaison on these subjects with other U.S. Government agencies, American trade unionists, and representatives of the international trade union movement.
Because of the continued importance of the work being done by non-Com-munist international trade union organizations—and particularly the accelerated activity of the international trade secretariats—the Department’s research, publishing, and analytical work in respect to these organizations continues to be emphasized. The results of this work are important not only to American unions, employers, and the public at large, but also the governmental agencies concerned with foreign policy formulation and operations.
During the year, the Bureau published a revised edition of the trade union directory for the Western Hemisphere and completed the revision of the trade union directory for Europe which is scheduled for publication in late 1965. Action was also initiated toward a revised edition of the trade union directory for the World Federation of Trade Unions scheduled for publication in late 1965.
The Bureau continues publication of its bimonthly International Labor, containing a wide range of information and photographs pertaining to the international labor field.
SPECIFIC ACTION PROGRAMS
The following action programs of the Bureau of International Labor Affairs are directed toward achievement of U.S. foreign policy goals:
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Foreign Economic Policy
The Bureau represents the Department in, and provides the staff work for, the Department’s participation in the interagency formulation of U.S. Government positions in foreign economic matters.
During the past year, the sixth multilateral tariff conference under the General Agreement on Tariffs and Trade (the Kennedy Round) opened in Geneva. The Bureau is providing representation for the Department at the Kennedy Round, and continues to participate in the interagency committee structure set up under the Trade Expansion Act of 1962 (under which authority the United States is negotiating at the conference). In cooperating with other agencies in advising the President and his Special Representative for Trade, the Bureau represents the Department on the Trade Staff Committee and its subcommittees, and has coordinated the Department’s position on the problems before these groups. In addition, the Assistant Secretary for International Affairs represents the Department on the Trade Executive Committeee, and the Secretary is a member of the Cabinet-level Trade Expansion Act Advisory Committee.
In further connection with the work of the General Agreement on Tariffs and Trade (GATT), the Bureau participated in the 1964 session of the Cotton Textiles Committee, GATT’s 22d session in March 1965, and the June 1965 meeting of the Experts’ Group on Adjustment Assistance.
The Bureau continued during the year to participate in the work of the Interagency Textile Administrative Committee, which administers the Long Term Cotton Textile Arrangement (LTA) providing for voluntary restraints on exports of cotton textiles and apparel to the United States and other countries. This Committee has continued to negotiate bilateral agreements with supplying countries, bringing the total of such agreements to 17, has participated in consultations with Japan aimed at a possible wool agreement, and has been deliberating intensively on proposed new policy guidelines for U.S. implementation of the LTA. During the year, the Assistant Secretary for International Affairs was named as the Secretary’s alternate to the parent Cabinet Textile Committee, and the Bureau provided the Department’s representation on the Interagency Textile Administrative Committee.
The Bureau continues to represent the Department on the U.N. Economic Committee, which prepares U.S. positions on matters introduced in the U.N. Economic and Social Council. The Bureau supplied representation for the Department during the year on U.S. delegations to the Third United Nations Tin Conference and to the 1st session of the Trade and Development Board established by the U.N. Conference on Trade and Development.
The Bureau has also studied and reported on developments in other problem commodity areas and has prepared numerous reports to the Congress and the Budget Bureau regarding labor implications of proposed legislation in the field of tariffs and trade. Of particular importance during the past year was the Bureau’s contribution to (a) the negotiation of the Automotive Parts Agreement with Canada, and the drafting of implementing legislation for this agreement,
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and (b) the preparation of implementing legislation for the Florence Agreement on the Duty-Free Importation of Scientific, Cultural, and Educational Materials.
International Technical Assistance
A significant new concept in international technical assistance was inaugurated with the establishment within the Bureau of the Department of Labor International Technical Assistance Corps (DOLITAC). In March 1965, the Secretary and AID Administrator David Bell announced formation of the Corps, which is financed by AID funds.
DOLITAC is composed of labor and manpower experts who are exclusively concerned with technical assistance abroad. Providing a reservoir of knowledge and experience for AID and other international organizations concerned with technical help, DOLITAC is specifically geared to the needs of the developing countries. The organization will specialize in the fields of manpower planning and administration, labor statistics, labor standards, labor-management relations, and labor ministry administration.
The Office of Program Development and Coordination, which mobilizes the Department’s broad resources for technical assistance purposes, entered into several Participating Agency Service Agreements (PASA’s) with AID during fiscal 1965 to provide specialized programs for Venezuela, Republic of China, Guatemala, Liberia, Tunisia, Korea, the Ryukyuan Islands, and Brazil, and prepared audio and visual materials, such as labor and manpower technical manuals and film strips, for use in developing countries.
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 609 foreign visitors during the year. Of these, 388 came under the program of the Agency for International Development, 173 under the cultural exchange program of the Department of State, 15 under the U.N. Technical Assistance Program, 21 under the ILO program, 10 under the Department of the Army and 2 under the Ford Foundation. There were 261 from the American Republics, 119 from the Far East, 95 from the Near East and South Asia, 65 from Europe, and 69 from Africa. Included were 398 trade unionists, 175 Government representatives, 19 from management, and 17 from other organizations. In addition, 947 visitors were referred as secondary visitors from other agencies, private organizations, foundations, and embassies; they included 4 visitors who were programed for longer than 3 months; the others came for short periods. Among the visitors during the year were 27 top officials, including the Ministers of Labor from Canada, Australia, Japan, and the Philippines.
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A union-to-union exchange program was inaugurated with Brazil in April under AID sponsorship, providing for 87 trade unionists in 10 teams to come to the United States to study and observe U.S. trade union activities and labor-management relations. It is envisaged that this type of program will be initiated for several other countries in the future.
Arrangements were made for 24 American labor specialists to go abroad during the year under the State Department’s cultural exchange program. They visited countries of Africa, the Near East, South Asia, and the Far East. Of these, 17 went to Japan under the union-to-union exchange program with that country which also provides for Japanese labor leaders to visit the United States. All of these specialists had a wide range of contacts with their counterparts and others in the countries visited in the general interest of promoting better understanding.
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 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 Organizations
During fiscal year 1965, 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 objectives of promoting balanced economic and social development in the developing areas of the world. The year ended with an ILO membership of 114, an increase of 4 over the year. The new members were Zambia, Malta, Malawi, and Yemen.
The 49th session of the International Labor Conference, attended by 1,130 delegates and advisers from 104 participating countries, was one of the 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.
The Conference adopted a number of conventions and recommendations on technical items. These included four international instruments concerning the employment of young persons in underground work in mines of all kinds; a convention and a recommendation on the minimum age of admission to employment; a convention on medical examination for fitness for employment; a recommendation on conditions of work; a recommendation on the employment of women with family responsibilities; conclusions to serve as the basis for a
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recommendation on the role of cooperatives in the economic and social development of developing countries; and a resolution on agrarian reform with particular reference to employment and social aspects. The Conference also adopted a 1966 budget of $20,337,871. A main feature of the meeting this year was a discussion of the Director-General’s report, which was dedicated to the study of the major program areas of ILO future action on which wide agreement was reached during the Conference debates in 1963 and 1964; human resources and economic development; the development of social institutions; and conditions of life and work.
Also during the fiscal year, the United States participated in the 160th, 161st, and 162d sessions of the ILO Governing Body. Assistant Secretary Weaver, as U.S. Representative on the Governing Body, attended all three sessions. The Governing Body took the following significant actions, among others, during the year:
1. Approved proposals of the Director-General concerning the organization and structure of the International Labor Office.
2. Established Working Parties to consider (a) proposals concerning the program and structure of the ILO, (b) Extra Budgetary Accounts, and (c) the Working Capital Fund.
3. Carried out the periodic reconstitution of the ILO’s Industrial Committees.
4. Approved the early opening of the Turin International Center for advanced technical and vocational training on a reduced budget.
5. Examined questions concerning the scale of allocations of member states.
6. Considered problems involving a new building for the ILO.
7. Fixed the agenda for the Conference to be held in 1966.
The Department of Labor also participated in a number of other meetings of the ILO, including the Tripartite Technical Meeting for the Clothing Industry and the Coal Mines Committee.
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
The Department continued its handling of U.S. participation in the Organization for Economic Cooperation and Development’s Manpower and Social Affairs Committee, including furnishing its vice chairman. It also cooperated with other U.S. agencies in their activities with OECD’s Economic Policy Committee and Scientific and Technical Personnel Committee. Since OECD activities in the manpower area are evolving into searches for new techniques to solve social problems through joint research by its 21 member countries, many of
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the Department’s bureaus participated in conducting research studies under OECD guidance during the year.
In addition, the Department conducted the NATO Manpower Committee’s annual civil defense exercises and participated with other U.S. agencies in back-stopping the U.S. Mission to NATO.
It also took part in the U.N.’s Economic Commission for Europe, particularly in providing the U.S. expert on productivity measurement for the Coal and Steel Committee, provided “backstopping” to the Department of State for the U.N.’s regional commissions for Latin America and Asia and the Far East.
International Exhibitions
The Department continued to participate in the interagency exhibits program through exhibits and seminars about American workers and their environment. Presentations were made at trade fairs in Colombo, Ceylon; Caracas, Venezuela; Montevideo, Uruguay; Nairobi, Kenya; Budapest, Hungary; Poznan, Poland; Dar-es-Salaam, Tanganyika; Izmir, Turkey; Zagreb, Yugoslavia; and Guatemala City, Guatemala.
A total of 32 people, selected from trade unions, private industry, labor-management institutions, and government agencies, were sent on these assignments. The majority of them spoke the principal language of the area. Face-to-face confrontations and discussions were arranged by U.S. labor attaches and other U.S. Embassy officials with workers, trade union officials, management representatives, students, teachers, and government officials in the host countries.
Approximately 700,000 pieces of literature were translated into the language of the host country and printed and distributed to provide information about the American way of life. The languages included Spanish, Tamil, Singalese, Swahili, Turkish, Polish, and Serbo-Croatian.
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BUREAU OF LABOR STANOAROS
BUREAU OF LABOR STANDAROS
Entering its fourth decade of existence last year, the Bureau of Labor Standards took this occasion to celebrate achievements, to assess current needs for a forward-looking labor standards program to complement the Department’s developing manpower activities, and to chart a constructive course in the war against waste, poverty, and ignorance. The late Frances Perkins set the tone for “Labor Standards Day,” on the 30th birthday of the Bureau, when she said in the opening speech, “The effort to improve labor standards was one of the original guns fired in the War on Poverty, and don’t forget it.”
Secretary Wirtz invited friends of the Bureau to speculate on the role of labor standards in the years ahead, as well as to contemplate past achievements. The Bureau has accordingly concentrated on (1) devising creative labor standards for an era of rapidly increasing population, changing labor force and technology, and (2) bringing to all wage earners, especially those below the poverty line, those protections and working conditions the majority of workers now enjoy.
NEW HORIZONS
Safety in Government
Accident prevention took on a new dimension with the launching of Mission SAFETY-70 by President Johnson in February 1965. Turning the spotlight on human waste in the Federal civilian service, he directed the Federal departments and agencies to reduce their injury frequency 30 percent by 1970. With the incidence of injury to employees no better than it was 10 years ago, he asked that the agencies with higher than average rates effect significant reductions, and that all other agencies improve further their performance in the pursuit of safety.
Issuing a new safety policy for the Federal service, the President explained that one-half of all civilian employees now work in agencies whose frequency from time to time has exceeded the goals set for 1970, and that attainment for the others is both practicable and essential. Agencies were requested to review and revise their safety programs where necessary and to report results within 90 days. The Secretary of Labor was asked to review these reports and to advise the President periodically of progress achieved. Technical staff of the Bureau analyzed the 90-day reports, for transmission to the President.
Injury rates compiled by the Department’s Bureau of Employees’ Compensation indicate that some of the large agencies, such as the Post Office, Air Force, and Army, reduced the incidence of injuries more than 5 percent over the past year, although the overall reduction among Federal agencies was only 2.5 percent.
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Further reductions are anticipated as the program gains momentum. Strengthening the leadership role of the Federal Government as a showcase of sound safety practices is expected to help bring improvements in State public employment and stimulate further improvements in private industry.
The Bureau continued its regular activities to improve safety measures for Federal workers by providing more than 200 technical services to Federal agencies and conducting 136 safety training courses for 3,445 Federal supervisors.
The Bureau Director serves as Chairman of the Federal Safety Council and his staff as secretariat. Established by Executive order, the Council consists of 3 regional and 93 field councils. To encourage active participation in the President’s Mission SAFETY-70, the field councils were asked to review the status of safety programs in their localities and submit reports and recommendations.
The Council sets criteria for the President’s Safety Awards, issued annually to agencies with outstanding safety performance. At a ceremony held in August at the Capitol, Vice President Humphrey presented awards to heads of the Departments of Agriculture and Interior, and to the Government Printing Office. These three first-time winners had reductions in injury incidence of 12 to 30 percent over the past year. Honorable mention certificates were given to heads of the Department of the Air Force, National Aeronautics and Space Administration, and Federal Communications Commission.
Services to Maritime Industry
Calendar year 1964 marked a reduction of 27 to 30 percent in the incidence of maritime injuries over the 5 years since the Bureau began to administer safety and health regulations under amendments to the Longshoremen’s and Harbor Workers’ Compensation Act. These regulations cover employments aboard ship in longshoring, ship repairing, shipbuilding, and shipbreaking on vessels afloat or in drydocks, building basins, and marine railways.
To measure progress, the Bureau uses the standard disabling injury frequency rate based upon the number of work injuries per million man-hours worked. These rates are compiled and computed by the Department’s Bureau of Labor Statistics from data submitted by individual employers. The injury rate in longshoring dropped below 100 for the first time in 1964 to 96.8, a 4 percent drop over 1963, while the shipyard injury rate fell to 27.8 or by nearly 5 percent. These reductions thus continue a trend over the past 5 years of the Bureau’s administration and promulgation of safety regulations in the maritime industry.
The Bureau provides training, consultative, and promotional services to unions and employers in some 100 ports through its 22 field offices. The volume of maritime services performed by the Bureau during the year is reflected in the accompanying table. Heavier emphasis is placed on longshoring than on shipyard operations because of the much higher frequency rate in the former.
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Maritime program statistics for fiscal year 1965
Longshoring Shipyard
Services:
Consultations--------------------------------------------------------
Evaluation surveys___________________________________________________
Accident investigations______________________________________________
Investigational hearings---------------------------------------------
Complaint investigations_____________________________________________
Ships inspected______________________________________________________
Recommendations made_________________________________________________
Training:
Number of sessions___________________________________________________
Number in attendance_________________________________________________
Safety meetings:
Number of meetings___________________________________________________
Number in attendance_________________________________________________
Number of publications distributed___________________________________
Enforcement action:
Violations cited_____________________________________________________
Cease and desist orders issued_______________________________________
Injunctions and fines imposed________________________________________
Enforcement action pending___________________________________________
Frequency rates:
Calendar year 1963___________________________________________________
Calendar year 1964___________________________________________________
6,411 2,770
199 99
359 178
2 2
207 64
14,701 6,071
2,958 1,398
398 452
8,216 10,218
518 230
14,325 44,240
43,244 28,381
1,266 1,636
1 4
0 1
4 0
100.7 28.7
96.8 27.3
The Department has accredited some 30 agencies to test, inspect, and certificate cargo handling gear aboard U.S. vessels not inspected by the U.S. Coast Guard. More than 200 of these vessels, mainly heavy lift barges, have been certificated. Indications are that annual surveys have resulted in important replacement and repairs to gear on these barges, thus insuring safety in their use.
Vessels of foreign registry having serious deficiencies in cargo gear and related certification are reported to their national authority and/or certificating agency. The international agencies have cooperated in taking the necessary corrective action, thus resulting in raising the standards of cargo gear maintenance on a large proportion of the world shipping that touches the United States.
American Standards Association project MH-9, “Longshoring Safety on the Dock,” is nearing completion. The Bureau gave the original impetus for this project and has been represented on virtually all of the working committees.
The Bureau worked in an advisory capacity with the National Fire Prevention Association’s 306 Subcommittee on Gas Hazards to aid the industry in revising its “Standard for the Control of Gas Hazards on Vessels in Shipyards.” This cooperative activity with the NFPA and its marine chemists illustrates the emphasis that has been placed on training of competent persons to supervise and carry out the new sections of the regulations dealing with flammable and toxic exposures. There is evidence of a marked decrease in the number of fires and explosions in operations under the Bureau’s jurisdiction as a result of this activity.
General safety training courses were conducted for supervisory personnel and for employees through company, unions, or joint labor-management sponsorship. The Bureau also cooperates with the Bureau of Apprenticeship and Training by conducting the safety portions of apprentice training provided longshoremen.
Safety Standards and Codes
The Bureau serves as an authoritative source of technical information on occupational safety. It furnishes engineering assistance and converts both unused
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and new knowledge into safety standards for the protection of wage earners. It investigates potential hazard-producing processes, material, and machines and develops recommended control standards.
Active participation in some 66 standards-setting meetings enabled the Bureau’s safety engineers to review and contribute to the development of a considerable number of new safety standards and codes.
Particularly significant was the Bureau’s contribution to the 17-point auto safety package and the development of Federal regulations requiring seat belts under Public Law 88-201. The noise control program proposals developed last year continued to serve as a catalyst for action by States and labor groups.
Staff maintained active participation in the Federal Radiation Council. The release of the Council’s report, “Guidance for Controlling Strontium 89, Strontium 90, and Cesium 197,” represents a major contribution since it is the first document providing protective guidelines on a worldwide basis.
Engineering staff contributed to several departmental administrative reports dealing with safety standards and technical problems of control: The International Labor Organization’s proposed “Encyclopedia of Occupational Safety and Health”; proposed safety legislation on mining; and subcommittee hearings on automotive safety.
Training and Educational Services
The Bureau continued to sponsor safety training programs and engineering consultant service to encourage upgrading of State safety staffs and improved practices. A total of 2,664 persons from various States participated in 62 formal training courses. Field staff participated in close to 50 meetings and conferences called by State and local private organizations. In addition, some 310 training and educational sessions were held for union members in 21 States, with an attendance of more than 8,000. The Bureau embarked on a new “Group Programed Instruction Technique,” using slide-script programs in safety programs for construction workers, and simplified its instruction training outlines for popular use.
Clearinghouse Services
The Bureau handled over 200 individual requests for technical engineering and consultative services on specific job safety and health problems—an increase of 12 percent over the previous year. The Bureau continued to contribute abstracts of the latest technical safety information to the International Occupational Safety and Health Information Center for worldwide circulation, and to make available a domestic version of the abstract service “Today’s Safety Guides” in revised format.
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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 1965. .......
* Non-Maritime
LABOR LEGISLATION AND ADMINISTRATION
Technical services to Federal agencies expanded considerably with enactment of several Federal laws concerned with the welfare of wage earners.
The Office of Economic Opportunity utilized the Bureau’s field staff to assist in the development of policies and procedures governing programs for agricultural workers and their families, and to advise on the special needs of farmworkers in various localities as a basis for program planning. The ground work was laid for an expanded clearinghouse of information on local programs and conditions affecting seasonal farmworkers, and services of field staff were made available in promotion of community action projects.
The Bureau provided assistance both to the Neighborhood Youth Corps and the Job Corps on standards to be incorporated in the regulations and contracts affecting work projects. Among other services, staff served on a Job Corps safety advisory panel, assisting actively in developing procedures for a comprehensive safety program, and furnishing youth training and safety promotional aids for use in special programs.
A major contribution was made in the planning and servicing of the Secretary’s Conference of State Agencies Administering Age Discrimination Laws, held in Washington in September 1964. Resource materials were supplied, and staff participated in drafting the Secretary’s report and recommendations to Congress, required under title VII of the Civil Rights Act.
The Secretary designated the Bureau to advise the Manpower Administration on the policies and standards involved in carrying out the terms of the new Farm Labor Contractor Registration Act. To fulfill this responsibility, the
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Bureau initiated a study of State crew leader laws and their administration to determine methods of establishing cooperative Federal-State agreements with respect to administration. This project will be continued in the next fiscal year.
On request of the President’s Committee on Consumer Interests, a special inquiry was made of State laws and regulations affecting debt-pooling services, and wage garnishment, as a basis for developing legislative standards.
General Working Conditions
More than 2,000 technical services were given in 50 States, the District of Columbia, and Puerto Rico during the year in such fields as youth employment, agricultural labor, wages, and hours, workmen’s compensation, occupational safety, industrial relations, and discrimination in employment. In addition to State labor agencies, assistance was extended to State legislative councils or committees, members of Congress, management and labor organizations, civic and church groups, colleges, and other groups and individuals.
Analysis of Labor Legislation
Review and evaluation of labor legislation and the preparation of publications dealing with new or revised legislative standards constituted an important aspect of the Bureau’s regular program. The year brought sharp increases in labor legislation activity. Some 5,000 labor bills were introduced in the legislatures of 47 States and Puerto Rico meeting in regular session. About 600 of the bills have been enacted into law thus far. Most significant was the progress made in the passage or improvement of minimum wage, employment discrimination, and health and safety laws. Delaware, Indiana, and Oklahoma adopted minimum wage laws for the first time, six States increased the statutory minimum wage rate, and two States extended coverage to include men. Eight States enacted laws prohibiting discrimination in employment. Five States effected major improvements in their workmen’s compensation laws.
Workmen’s Compensation
Concern for the protections offered workers disabled on the job was heightened by growing public interest in updating State coverage, increasing benefits, and evaluating compensation programs as they relate to the President’s program to reduce both human waste and poverty.
Two studies dealing with problems of radiation injuries under State workmen’s compensation laws were completed. The results of these studies, conducted in cooperation with the Atomic Energy Commission, will be published shortly and should be a useful tool in promoting adoption of more adequate standards. Work on the comprehensive study of administrative practices of workmen’s compensation agencies was continued, with special emphasis on the processing of claims and the evaluation of current disability concepts.
Technical consultants participated in a number of State and national conferences dealing with problems of workmen’s compensation, including the
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triennial meeting of the International Social Security Administration held in Washington, D.C., in the fall of 1964, the western regional meeting of the American Association of State Insurance Funds, and special workshops on workmen’s compensation and labor health services held in Chicago and Washington, D.C.
The Bureau continued to promote interest in providing for rehabilitation services as an integral aspect of workmen’s compensation programs. Staff worked with the Council of State Governments in developing draft language for a combined compensation and rehabilitation law.
Technical and informational services provided specific help to the State workmen’s compensation agencies of Kentucky, New Jersey, Delaware, Connecticut, Maryland, Rhode Island, and California, and to numerous labor and welfare organizations concerned with adequate protections of injured workers.
Seasonal Farmworkers
The Bureau continued to pursue an active role in the promotion of improved conditions for migrant and other seasonal hired farmworkers. The program included (1) servicing the 34 State committees on seasonal farm labor located in 28 States and (2) participation in numerous workshops and conferences called to study problems of migrants. Among these were the Indiana Migrant Ministry Conference; the National Conference of the Bishop Committee for the Spanish Speaking, held in Texas; the Southwest Conference on Poverty in Arizona; the National Catholic Social Action Conference, in Boston; the South Cook County Council for Migrants, in Illinois. Guidance and technical assistance were also provided community groups interested in organizing and conducting programs for migrants and their families. More than 1,000 services were rendered to labor unions, church and civic groups, growers, and other citizens.
Young Workers
The development of regulatory standards for young workers employed under the child labor provisions of the Fair Labor Standards Act is a continuing activity. The Bureau also formulates and promotes advisory standards to improve the employment conditions of young workers.
The promotion of sound regulatory and voluntary standards assumes special importance as the number of youth entering the labor force increases sharply year by year. The Bureau’s activities were directed during the year toward accommodating program efforts to the new and developing Federal youth work and training programs, and to the present job needs of the youth.
The Bureau undertook an intensive review of standards incorporated in Regulation 3 of the Fair Labor Standards Act governing employment at 14 and 15 years of age. The aim is to evaluate the extent to which the regulation is consistent with departmental objectives and programs. A report was prepared for future departmental consideration.
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The Bureau Director represented the Department on an interagency committee set up to advise on a study of the impact of school attendance and child labor laws on juvenile delinquency, sponsored by the Department of Health, Education, and Welfare and conducted by the Stamford Research Institute. Bureau staff furnished substantial resource materials and advisory service to the working staff.
Investigation of hazardous occupations in the highway and street construction industry was continued to determine feasibility of setting an 18-year minimum for employment in certain occupations, and order No. 4, limiting employment under 18 in pulpwood and logging operations, was reviewed for possible revision.
The promotion of safety standards and practices for young workers was concentrated on reaching the entry occupations and industries in which large numbers of youth are employed. The Bureau highlighted the importance of establishing safety habits in beginning jobs as a sound foundation for later worklife. Promotion of safety for young farmworkers has been widely accepted and the Bureau’s technical aid sought by many organizations and governmental agencies. A staff member served as consultant for the agricultural seminar of the International Trade Fair in Yugoslavia, and advised on safety procedures for the Department’s “A-TEAM” project to place high school boys in farmwork for the summer.
In cooperation with the U.S. Office of Education and other programs, the Bureau developed safety training and promotional materials for improving safety practices in school shops and laboratories and in institutions with work programs. Participation in the Office of Education’s school shop and laboratory ad hoc committee was continued.
The Bureau renewed its cooperative agreements with 45 States, the District of Columbia, and Puerto Rico for acceptance of State employment certificates as proof of age under the Fair Labor Standards Act. These jurisdictions issued more than one million employment certificates for young workers 14 to 17 years of age employed in occupations covered by State or Federal child labor laws. To promote improvement in local certification processes, staff participated in conferences of professional organizations, members of whom are frequently responsible for certificate issuance.
INTERNATIONAL COOPERATION
The Bureau provides technical literature for overseas use, sends technical consultants abroad to advise on labor standards, and trains foreign visitors. These activities, coordinated with the Department’s Bureau of International Labor Affairs, aim at improving the capabilities of the less developed countries to achieve sound working and living conditions, consistent with the broader goals set by the U.S. assistance programs.
The Bureau had primary responsibility for developing special training courses for 42 participants covering the field of labor law administration, industrial safety and hygiene, and labor-management relations. In addition, the Bureau
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assisted in training 353 visitors referred by the Agency for International Development of the State Department, United Nations secretariat, foreign embassies, as as well as other bureaus of the Department.
The Bureau also supplied experts for the AID missions in Liberia, Venezuela, and Guatemala, to advise and assist on labor relations and occupational safety. Staff participated in the Zagreb, Yugoslavia, and Caracas, Venezuela, trade fairs, and conducted a safety seminar at the Monterrey Institute of Technology in Mexico.
Substantial contributions were made to the work of the International Labor Organizations, through submission of 24 papers dealing with labor standards.
Providing technical information in response to inquiries from abroad has become a major function of the Bureau. More than 500 inquiries were answered during the past year. Increasing need for comparative information has led the Bureau to undertake studies of labor law administration, and safety practices in other countries, and to develop materials designed for use overseas as well as with foreign trainees. As an aid to developing safety standards in Latin America, 242 American safety standards were translated into Portuguese and Spanish.
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BUREAU OF LABOR STATISTICS
BUREAU OF LABOR STATISTICS
The Bureau of Labor Statistics continued to function as the major factfinding agency of the Federal Government in the field of labor economics. It published extensive and timely statistical series, widely used in public and private decisionmaking, on the labor force, employment, unemployment, prices, occupational wages, earnings by industry, hours of work, productivity, work stoppages, and industrial hazards. In addition, its work extended to such areas as industrial relations, technological change, foreign labor conditions, employee benefit plans, and economic growth. Many specialized research studies were provided for the use of the Department of Labor and other Government agencies.
An outstanding event during the year was the conduct of a series of experimental surveys, in cooperation with the Census Bureau, to test definitions and improve reporting in the monthly labor force survey. In addition, work on the 1966-67 edition of the “Occupational Outlook Handbook” was completed. A study of the compilation and use of job vacancy statistics abroad was prepared, and experimental work, in cooperation with the Bureau of Employment Security, was undertaken on a job vacancy statistics reporting system for the United States. A group of wholesale price indexes on an industry basis was prepared for regular publication. The initial studies in a comprehensive series of reports on the provisions of collective bargaining agreements were issued. A number of studies were prepared on problems of technological change and employment. Special research undertaken by the Bureau included work on various facets of the poverty problem, the employment aspects of foreign trade policy, the impact on prices of the reduction in excise taxes, and the older worker.
The Bureau continued to enjoy excellent cooperation in its data collection activities from business enterprises, unions, households, and Government agencies. Most of the information collected by the Bureau is secured under a confidentiality pledge, which is rigorously observed.
The results of the Bureau’s work are issued in the form of bulletins, reports, and releases, and in a number of specialized periodicals. Its major journal, 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; and to evaluate and comment on statistical and technical matters raised by the Bureau of the Budget and other Federal agencies. Several
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activities were directed toward improving statistical techniques and greater operating efficiency. The Wage and Hour and Public Contracts Divisions were assisted in designing a sample for a new compliance survey.
Continued research in seasonal factor methodology resulted in some improvements in the standard method used to adjust economic time series for seasonal influences. The computer program for applying the BLS-developed seasonal method was made available to some 60 industrial and governmental organizations. A specially prepared computer program for inverting a large order matrix was used extensively in the project on economic growth.
The Bureau participated actively in government-wide programs of economic analyses of various industries directly related to the Kennedy Round of tariff negotiations. Bureau-supplied data on employment, occupational outlook, prices, and related materials were used by officials here and in Geneva in establishing the U.S. position with respect to specific tariff changes both by the United States and by foreign countries.
Periodic reports were prepared on the current economic situation and the short-run outlook as it affected labor developments. Analytical work was undertaken on a variety of questions relating to poverty, the Negro, housing, and proposals for income maintenance and improvement. Much of this work was used by the Secretary’s Office, the Office of Economic Opportunity, and by other Federal agencies in policy review and formulation. Several studies were published.
Field Operations
Public interest in data available from the Bureau’s six regional offices continued to increase markedly. Slightly more than 527,000 inquiries, an increase of 24 percent over fiscal year 1964, were answered. Inquiries relating to manpower, occupations, and youth were especially numerous.
The 23 d Interstate Conference on Labor Statistics was co-sponsored with the Connecticut Labor Department and the University of Connecticut. The Conference was attended by State labor commissioners and statisticians, corresponding officials from the Canadian Dominion and Provincial governments, business and union representatives, university professors, and Federal officials. The agenda contained topics related to the poverty program, the current economic situation, safety programs, the planning of training and education programs, and economic expansion and persisting unemployment.
Publications
The Monthly Labor Review marked the 50th anniversary of its publication with a special issue which reviewed the past, surveyed the present, and gave considerable attention to the problems of the future. In addition to the regular articles, excerpts from past issues traced the development of the topics covered by the Review. Noted experts commented on the role that the periodical plays in the functioning of their particular fields. While continuing throughout the year to publish studies on economic matters, the Review also covered current
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events—union conventions, a poverty symposium, a conference on labor statistics, and meetings of the Industrial Relations Research Association and the National Industrial Conference Board. Other special articles discussed such subjects as the ranking of occupations by earnings, characteristics of the employed poor, and the movement of Negroes into the city. Analysis of long-term economic trends was assisted by findings presented in articles dealing with labor force projections for 1970-80, manpower needs in 1975, an interindustry employment table, and a study of trends and outlook for employment in government.
Publication of a new and comprehensive series of studies covering the entire scope of major collective bargaining agreements was begun during the year. From 30 to 40 separate bulletins will ultimately be published. The first to be issued was a study of grievance procedures.
Other significant bulletins and reports issued during the year included a “Glossary of Current Industrial Relations and Wage Terms,” and “Labor Mobility and Private Pension Plans.” The reports on family incomes and expenditures were continued, as were the studies on labor and material requirements for various types of construction. Other studies issued included a series of digests on labor conditions in Latin American countries; case studies on manpower planning for adaptation to technological change; salaries of professional, technical, and clerical employees in selected occupations; digests of selected pension plans under collective bargaining; a technical report on conducting a labor force survey in developing countries; a counseling guide to occupational and other manpower information; a revised and updated report on employment and earnings statistics for States and areas; labor law and practice in a number of foreign countries; industry wage surveys for a number of industries; occupational wage surveys in metropolitan areas; union wage scales in four industries; wage chronologies for a number of major bargaining situations; and employer expenditures for selected fringe benefits in manufacturing industries.
ADVISORY COUNCILS
The Business Research Advisory Council continued as the focal point of liaison between American industry and the Bureau’s programs and activities. Council members provide advice and consultation on both technical- and industryrelations aspects of all Bureau programs. The council in 1965 was composed of 42 regular and 9 ex-officio (former chairmen) members appointed by the Commissioner after consultation with the National Association of Manufacturers, the U.S. Chamber of Commerce, and other business organizations. The committees of the council, agumented by an additional 56 business representatives (non-council members), dealt with specific subject-matter fields (e.g., prices, wages, etc.) covering the full range of the Bureau’s work. Each subjectmatter committee met two or three times with Bureau officials during the year. The council itself held three meetings with Bureau personnel, one of which was a seminar exploring the interconnection between policy making and statistics.
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The extensive activity o£ the Labor Research Advisory Council and its committees during the fiscal year reflected the continued active interest of trade union research specialists in the Bureau’s programs. The membership of the council was increased from 14 to 20 to include newly designated top union research officials and to add to the organizational representation. The council met once during the year, and a total of 10 committee meetings were held. Particularly prominent items on the agenda of these meetings were conceptual and statistical questions relating to job vacancies, nonproduction workers, and poverty. The members of the council and its committees are nominated by the American Federation of Labor and Congress of Industrial Organizations, and approved by the Commissioner. In addition, other research directors of international unions represented in the AFL-CIO and the Railway Labor Executives’ Association, who are not members of the council, are invited to attend its general meetings.
MANPOWER AND EMPLOYMENT ANALYSIS
Labor Force Statistics
The research program to carry out primary recommendations of the President’s Committee to Appraise Employment and Unemployment Statistics was almost completed by the end of fiscal 1965. This work involved a series of experimental surveys, in cooperation with the Census Bureau, based on a supplementary panel of households. These studies led to many recommendations for sharpening and improving the labor force statistics.
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 studies of the educational attainment of workers; employment of high school graduates and dropouts in 1964; geographic mobility and employment status; employment and unemployment of out-of-school youth; unemployment among full- and part-time workers; annual work experience of the population; multiple job holders; family characteristics of workers; and an annual review of labor force and employment developments for 1964.
Projections of the labor force by age and sex to the year 1980 were developed and published, after an intensive study of the factors determining labor force growth, including among others the effect of changing levels of unemployment.
Occupational Outlook Program
The Bureau completed work on the 1966-67 edition of the “Occupational Outlook Handbook,” which provides information on future job opportunities in more than 700 occupations and 30 industries for the use of parents, guidance and counseling experts, and others who have a deep interest in vocational guidance. The new Handbook reevaluates the effects of technology and recent economic and social developments upon occupational requirements in our changing society. At the end of fiscal 1965, sales of the previous edition of the Handbook had reached 54,000 copies; nearly 1 million copies of reprints from the Handbook had
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been sold. Sales of the Occupational Outlook Quarterly, which provides a continuous flow of current occupational and job information, were over 14,000; the May issue of the Quarterly, devoted exclusively to recreation, sold over 23,000 copies.
The Bureau also completed work on several manpower studies for agencies outside the Department of Labor, including the U.S. Office of Education, the President’s Committee on the Economic Impact of Defense and Disarmament, the National Aeronautics and Space Administration, and the Job Corps of the Office of Economic Opportunity.
The Bureau’s continuing research program on the changing industrial structure and occupational composition of the American economy resulted in several reports on future manpower needs. These studies included reports on civil aviation, technicians, scientists, and engineers, teachers, and Government workers.
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 163 major areas, and hours and earnings series for 141 areas.
The cooperative labor turnover program showed further growth during its eighth 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 116 major areas.
Publication of “Employment and Earnings Statistics for the United States, 1909-64,” BLS Bulletin 1312-2, was one of the noteworthy developments during the year. The third in a series, this bulletin contains monthly data from the earliest dates of availability for all regularly published national series on employment, hours, and earnings by industry.
A companion volume, “Employment and Earnings Statistics for States and Areas, 1939-64,” BLS Bulletin 1370-2, was also completed during the year. It provides annual averages of employment, hours, and earnings in considerable industry detail for all 50 States and 159 major areas. A new sampling plan for the industry employment statistics program was developed 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
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each important occupation, including the occupational structure o£ major industries. The first part of a planning report on the development of a program of current employment statistics by occupation was circulated for internal use within the Department. It included a list of occupations based on such criteria as employment rate of growth, vulnerability to technological change, length of training required, importance to the national welfare, and industry concentration. Work was begun on the second part of the report which will include specific recommendations 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’s program of research into the occupational structure of industries was approaching comprehensive coverage of all economic activity by the end of the fiscal year. Projections of industry-occupational patterns to 1970 and 1975 were being readied for use, together with projections of total employment in each industry, for the derivation of estimates of employment requirements by occupation for about 100 occupations for 1970 and 1975.
Prices and Living Conditions
Interest in close scrutiny of price developments brought about an increase in activity in this area during the year. Special reports of current price developments were prepared weekly, 6-month price forecasts were developed, and detailed analyses were made of factors affecting current and future price trends in key industries. In connection with the excise tax reductions, considerable work was undertaken before the legislation was passed to serve as a guide to the potential price impact of the tax cuts. After enactment, work continued on the measurement of how much of the reductions were passed on to consumers.
A major contribution during the year was the use of information from the Bureau’s consumer expenditure surveys and standard budgets to assist in the development of the program for the attack on poverty.
Consumer Price Index
The changeover to the new Consumer Price Index—based upon the 5-year revision program ending in 1964—was completed. New indexes were published on a monthly basis for all major components, individual food items, and a few important nonfood items. Semiannual computation and publication began for many additional series, including new items selected for the revised index.
A major improvement made in the revised Consumer Price Index was the application of the principles of probability sampling to the maximum degree possible. A related significant change was to provide for the regular computation of at least a rough estimate of sampling error for the CPI through a system of replicated samples. During the year, these as well as other aspects of the revision program
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were described in a series of technical papers which dealt with the handling of sampling problems at various levels in the revision, the statistical and conceptual structure of the revised index, and pricing and calculation procedures.
Basic research continued on the conceptual structure of the index in terms of its appropriateness for present and future uses. Research also was carried forward on better methods for handling difficult quality-change problems and for introducing new products into the index on a more timely basis. Projects included: Investigation of techniques that might be used to take account of quality changes when developing price indexes for certain products such as gasoline; preparation of estimates of the price impact of merchandising practices, such as the use of trading stamps; and a study of the effect of different computation procedures on index movements. In addition, methodological research continued on how to improve techniques for pricing significant sectors of the index such as home purchase, restaurant meals, and medical insurance and, for the first time, procedures were established to provide for calculating the impact of general sales and other taxes on the Consumer Price Index.
Living Conditions
The 1960-61 surveys of consumer expenditures, income, and savings of urban families, used in adjusting the weights in the revised Consumer Price Index, have also provided essential and unique information for studies of consumer expenditure patterns and living conditions. The major task of publishing the basic data from these surveys was completed during the year. Reports were issued for the country as a whole, for major geographic regions, and for individual cities—including the five cities surveyed in 1963. In addition, the national results of similar surveys of rural areas were combined with urban findings to make possible, for the first time in 20 years, analyses of consumer spending of the total U.S. population. More detailed data are in process of preparation and will be published in the near future.
Additional findings from the surveys were made available in a series of supplementary statistical tables which provide data on such diverse subjects as how sources of income vary for families at different income levels, what proportion of their income different types of families spend for medical care, and how spending and living conditions of Negro families compare with those of white families at the same income level. Since much information of great value to other government departments, universities, private research organizations, industry, and unions has not been published, arrangements were made to sell electronic computer tapes containing the unpublished basic information to interested users.
Publication of the series of analytical reports based upon the surveys continued. In particular, survey data were found useful in the poverty program initiated by the Economic Opportunity Act; analyses were made of the expenditures and incomes of low-income families and of the living conditions prevailing among the poor.
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Industrial Prices and Price Indexes
Development of price indexes suitable for the analysis of economic trends by industry continued to receive attention. Fifty-two industry-oriented indexes were constructed and will be published regularly. As commodity coverage is expanded, this number will increase correspondingly and indexes for larger sectors of the economy will also be published. Additional interim indexes were prepared to fill the immediate needs of other government agencies concerned with analyses of economic growth, productivity, and the deflation of the national accounts.
The special project to develop purchase price indexes for research and development activities of Army laboratories and their contractors was completed. On the basis of the report sent to the National Science Foundation, the agency sponsoring the project, the Bureau was requested to continue this program.
Work began on the reweighting of the Wholesale Price Index to reflect 1963 shipments of commodities. The index weights are now based on 1958 shipments. It is anticipated that the new weights will be introduced in January 1967.
WAGES, SALARIES, AND RELATED BENEFITS
Procedural innovations in editing and reproduction were adopted in the widely used annual studies of wages and related benefits in 81 Standard Metropolitan Statistical Areas and one smaller nonmetropolitan area. As a result, the individual area reports were released from 1 to 2 months earlier than in former years. Other improvements included the presentation of additional measures of earnings and the refinement of some job definitions. The reports contain information on minimum entrance salaries, shift differentials, scheduled weekly hours, and on such supplementary pay practices as paid holidays and vacations, paid sick leave, and health, insurance, and pension plans. The individual area studies are summarized annually in a two-part bulletin, part I of which incorporates data for each of the areas surveyed. Part II contains national and regional estimates of the levels and trends of earnings, together with summaries of establishment practices and supplementary pay provisions for all metropolitan areas combined, four broad regions, and for six major industry divisions. Special analytical studies are also included in part II.
The report on the annual survey of professional, administrative, technical, and clerical salaries in private industry, designed for use in appraisal of the Federal salary structure, was published in early November as scheduled. This national study has been extended to represent all nonmetropolitan counties, as well as Standard Metropolitan Statistical Areas for which data will continue to be shown separately. The results of the study are reflected in the Administration’s proposals to the Congress on Federal compensation in fiscal 1966, as prescribed by the Federal Salary Reform Act of 1962. To facilitate comparison between private and Federal salaries at the upper nonprofessional work levels, three additional occupations were selected and defined for inclusion in the
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future salary studies. Plans were also made to include in future surveys smaller sized establishments in certain industry segments.
Surveys of average hourly earnings of workers in production jobs characteristic of a particular industry were undertaken during the year in 12 manufacturing and 4 nonmanufacturing industries. Data for selected “indirect” or related occupations were also included. Surveys were completed and reports issued for 10 of the industries, with work well underway in 6 others at year end. Presurvey planning was also underway for studies in three additional industries. These studies, typically nationwide in scope with separate tabulations for selected regions and areas, provide distributions of workers by earnings classes. They include information on the incidence of incentive pay, scheduled weekly hours, and on such practices as paid holidays and vacations, and health, insurance, and pension plans.
Reports were completed and issued during the year on union wage scales, scheduled hours of work, and employer contributions to welfare and pension plans in four highly unionized industries. These studies, among the Bureau’s oldest continuous statistical series, related to specific crafts or occupations in building construction, printing, local trucking, and local transit in cities of 100,000 population or more. The area coverage for the surveys in building construction, local trucking, and local transit was increased from 61 to 68 cities and, in printing, from 62 to 69 cities. Continued were the special quarterly surveys of union rates and employer contributions to welfare and pension funds for 7 major building crafts in 100 cities.
Among the studies designed primarily for administrative use by the Wage and Hour and Public Contracts Divisions, which administer the Fair Labor Standards Act, were reports completed by the Bureau on employee earnings and hours in manufacturing, wholesale trade, and in selected nonmetropolitan areas in the South. Other surveys for the Divisions’ use were underway covering nonsupervisory employees in retail trade, the motor carrier industry, 9 small metropolitan areas in the South, and 15 nonmetropolitan areas in the South and North Central regions.
The retail trade study will provide distributions of employees by average hourly earnings and weekly hours of work for the United States, four broad regions, metropolitan and nonmetropolitan areas, and for seven major industry groups and selected industries within these groups. The data will permit analysis of changes in hours and earnings between 1961 and 1965. The study of employees of motor carriers will show distributions of earnings and hours by type and class of motor carrier, by region, with separate data for selected occupations. The studies in 9 small metropolitan areas in the South and in 15 nonmetropolitan areas in the South and North Central regions will provide distributions of employees by average hourly earnings and weekly hours of work for all industries, major industry groups, and selected industry divisions.
To permit examination of the effects of the Equal Pay Act of 1963, a study was undertaken, at the request of the Wage and Hour and Public Contracts Divisions, of the earnings and hours of men and women employed in identical occupations,
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on specific dates, in the banking industry. Other exploratory work was underway on a study of hours and earnings of general aviation flight personnel for use by the Divisions in examining the current exemption of those employees from the provisions of the Fair Labor Standards Act.
In the series of studies of employer expenditures on fringe benefits, detailed reports were published covering production workers in manufacturing industries and employees in finance, insurance, and real estate. Planning and exploratory work was begun for a similar study in the transportation industry. Tabulations of data were completed in a special study, requested by the Bureau of the Budget and the Civil Service Commission, of employer expenditures on fringe benefits for white-collar workers. The industry coverage of the survey corresponded with that of the annual salary survey of professional, administrative, technical, and clerical occupations. Despite some technical deficiencies, the findings provided generally reliable indicators of the relationship between Federal and private expenditures on fringe benefits for white-collar employees.
The 200th issue of the monthly report on Current Wage Developments was released during the year. The reports in this widely used series, inaugurated in 1948, list negotiated changes in wages and related benefits in situations affecting 1,000 workers or more in manufacturing and selected nonmanufacturing industries. Quarterly and annual statistical summaries were prepared from the data. Statistical summaries were also prepared for manufacturing as a whole, covering employees in large and small union and in nonunion establishments.
Supplements updating a number of wage chronologies, which trace negotiated changes in wage rates and related benefits in key collective bargaining situations, were prepared.
INDUSTRIAL AND LABOR RELATIONS
The first group of studies in the new and comprehensive review of major collective bargaining agreements (the Bulletin 1425 series) was published during the year. These covered grievance procedures, severance pay and layoff benefit plans, supplemental unemployment benefit plans, and wage-employment guarantees. A number of other reports were in various stages of completion at the end of the year.
At the request of the Secretary, the Bureau’s first analysis of collective bargaining agreements in the Federal service was undertaken and completed. Another new type of study, dealing with the operation of severance pay plans and their implications for labor mobility, was also completed.
In the field of employee benefit plans, special studies were prepared for the Secretary’s report to the Congress on “The Older American Worker.” The studies dealt with the influence of pension plans, health and insurance plans, and the practice of seniority on the employment of older workers. A study of the implications of private pension plans for labor mobility was published during the year. A new digest of pension plans under collective bargaining was issued, and a
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comprehensive study of the types and levels of benefits under all private pension plans was nearing completion.
A revised edition of the “Brief History of the American Labor Movement” was published. Also designed for wide, popular use, a glossary of current industrial relations and wage terms was issued.
Preparation of the 1965 edition of the labor union directory and membership survey was underway for publication in the fall of 1965. Among the new features of the Directory is a distribution of union membership by State.
The work stoppage analysis program continued at its regular pace, with some modifications designed to throw more light on the kinds of strikes now prevalent.
Several special reports on industrial relations matters were prepared during the year for other Federal agencies.
Analytical and statistical services were provided to the President’s Committee on Equal Employment Opportunity for its three annual surveys of minority group employment—mandatory compliance (Government contractors and subcontractors), companies enrolled in the voluntary Plans for Progress, and Federal employment. More than 10 million employees were included in the surveys, which developed information for all employees and selected minority groups by industry, occupation, and sex for the compliance and Plans for Progress surveys, and by department or agency, pay plan, and grade or salary for the Federal employee study. Geographic detail, including State and selected Standard Metropolitan Statistical Area data, was tabulated for each of the programs. Reports on “Minority Group Employment in Compliance Program Companies, 1963,” and on “Negro Employment Changes in Compliance Program Companies, 1963 to 1964,” were completed. The Committee received comprehensive statistical tables for the 1963 Plans for Progress survey, and preliminary tables for the 1964 compliance survey. The analytical reports for these two studies were practically completed. An article on “Negro Employment in the Federal Government,” based primarily upon the 1964 survey, was in preparation for publication.
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 1964 to provide a series covering the 1909-64 period. In addition, indexes for manufacturing and nonmanufacturing, conceptually compatible with those for the private economy, were revised and extended to cover the postwar period 1947-64. Indexes of output per man-hour for 25 selected manufacturing and nonmanufacturing industries were extended to the most recent period for which data were available. Included in this list of industries is steel, for which the weighting structure for measures of production was updated to reflect the relative importance of the industry’s products in 1961.
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In addition, the scope of the Bureau’s work in industry productivity measurement was increased during 1965 with the publication of reports on primary aluminum and footwear. The report for each of these industries includes measures of output per man-hour for all employees, production workers, and nonproduction workers, as well as underlying statistics, a description of the industry, a brief examination of trends, and a technical note on procedures and sources. The feasibility of developing productivity measures for additional industries was also explored; a report on the concrete products industry is planned for early fiscal 1966, with additional industry reports later in the year.
In an effort to provide interested parties with the most recent developments in the existing literature on productivity, the Bureau began the preparation of an annotated bibliography as a supplement to the previously published document which covered publications appearing prior to 1958.
Two special studies were initiated for the President’s Commission on Technology, Automation, and Economic Progress. One of the studies is designed to estimate, for selected industries, the declines in establishment employment associated with productivity advances. The other is a pilot project to explore the feasibility of projecting industry productivity trends based on the experience of establishments with high productivity.
The Bureau also extended the annual indexes of comparative labor and nonlabor costs, prices, and output per man-hour for the total private economy and the nonagricultural sector.
Labor Requirements Studies
A comparison of the labor and material requirements for nine types of construction was completed and published. For each $1,000 of contract cost, the study compared both the on-site man-hours, by occupation, as well as the manhours required off-site to produce and distribute the construction materials.
A detailed study of the labor-generating effects of the construction of college housing was also published; field work for preparing a detailed study of the labor-generating effects of sewage disposal works was completed; and field work was initiated for a restudy of the labor-generating effects of school construction. Also underway is a study of the labor and material requirements in selected years of highway construction.
Automation and Technological Change
The Bureau undertakes research on the pace and direction of technological change and its manpower implications as part of the Department’s early warning system.
Bulletin No. 1437, “Outlook for Numerical Control of Machine Tools,” published in fiscal year 1965, deals with the manpower implications of a key technological innovation in metalworking industries. The outlook is for widespread diffusion of this innovation over the next decade. The report covers the nature, status, and prospects of numerical control and its impact on productivity,
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occupational requirements, employment, and labor-management adjustments. One of the principal problems will be to revise training for machining occupations to take account of the need for programing skills.
The Bureau also published a report entitled “Manpower Planning to Adapt to New Technology at an Electric and Gas Utility” (BLS Report 293). The report describes measures to provide advance notice and transfer and retrain workers that were undertaken by a large utility to minimize adverse effects on employees during the changeover from manufactured to natural gas and other changes. More than 1,900 employees, mostly blue-collar workers, were involved in these changes. The report was prepared at the request of the Organization for Economic Cooperation and Development as part of its program of assembling information about techniques used in member countries to facilitate orderly manpower adjustments to technological change.
A study of the impact of office automation in insurance, a major white-collar industry, was virtually completed. The findings of a mail inquiry directed to over 400 companies with about nine-tenths of total insurance carrier employment are reported. Among the topics covered are the extent of computer usage, future prospects for technological change, and the impact on employment and occupational requirements.
Work is in process on a study of impending technological changes and their manpower implications in 40 key industries. This study expands and updates the report on “Technological Trends in 36 Major American Industries,” which was published in March 1964 by the President’s Advisory Committee on Labor-Management Policy. Assistance from almost 500 leading experts in industry, labor, and government is being sought in the preparation of this study.
Bureau officials took part in the North American Joint Conference on the Requirements of Automated Jobs and Their Policy Implications, held in Washington, December 8-10, 1964, under the sponsorship of the Organization for Economic Cooperation and Development. Papers were given on “Technological Change, Productivity, and Employment in the United States” and the “Effects of Technological Change on Occupational Employment Patterns in the United States.”
INDUSTRIAL HAZARDS
Substantial progress was made in updating the Bureau’s work injury rate series to conform to the 1957 edition of the Standard Industrial Classification Manual. All annual data for 1961, 1962, and 1963 were retabulated on the new basis and final revised figures for 1961 and 1962 were released. New benchmarks for the revised quarterly and monthly series of injury rates for manufacturing were developed, and the current data were revised to fit into the new series. As a result of these revisions, the Bureau is now providing work injury rate data in much greater industry detail than had previously been possible, which substantially increases the usefulness of the material to the occupational safety movement.
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The Bureau continued and expanded its technical services by participating in the work of revising the American Standard Method of Recording and Measuring Work Injury Experience, and in the development of a new American Standard for measuring the injury experience of patrons in public service establishments.
The Bureau provided the chairman and servicing for a committee of the American Society of Safety Engineers, which is studying the possibilities of developing professional standards for safety engineering. This involves defining the profession, developing an acceptable college curriculum leading to a safety engineering degree, and exploring the feasibility of State licenses for safety engineers.
Technical consultation and program recommendations were provided for two States with respect to the development of workmen’s compensation statistics. Extensive counseling was given one State on developing an injury-rate collection program designed to service the State’s safety inspection and enforcement activities.
Bureau staff members participated extensively in the preliminary planning of Mission Safety Seventy, a program sponsored by the President for reducing work injuries in the Federal service by at least 30 percent by 1970. The Bureau also provided the vice chairman for the Statistics Committee of the International Association of Industrial Accident Boards and Commissions, who assisted in preparing the Committee’s 1965 report.
From its regular work injury statistics and research programs, the Bureau provided a wide range of informational material of prime importance to the occupational safety movement. The most significant reports issued in this area included:
1. Estimates of the total volume of disabling work injuries and of the economic losses resulting from those injuries during 1964.
2. Reports of final revised injury frequency and severity rates for a wide range of manufacturing and nonmanufacturing industries for the years 1961 and 1962. A similar report for 1963 was nearing completion. These data constitute the basic national measures of work injury occurrence and provide individual establishments with a standard against which their own experience may be evaluated.
3. A series of quarterly reports presenting monthly injury-frequency rates for a large number of manufacturing industries. These data provide current measures of injury occurrence and give early evidence of changes in trends and of the success of on-going safety programs.
4. A report on the 1963 injury experience of the marine cargo handling industry, inaugurating a new annual series of reports designed to stimulate interest in safety in this highly hazardous industry. This report establishes a new pattern of presenting data for a single industry in various geographical and activity breakdowns to permit more refined analysis.
5. Four quarterly reports presenting monthly injury occurrence rates in great geographical detail for activities subject to the safety and health requirements
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of the Longshoremen’s and Harbor Workers’ Act. These data are used directly in the planning and operation of the Federal program of promoting and enforcing safety in these activities. A variety of special tabulations also were prepared during the year to further this work.
In addition to the above reports, the collection of data for a one-time study in depth of injuries and accident causes in hospitals was completed and analysis of the materials started. Collection of data for a similar study of injuries and accidents experienced by firefighters was also begun. The final report on a comparable study of injuries experienced by employees of State, county, and municipal highway departments was nearing completion at the end of the year.
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 responsibility for coordinating 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 1965, the major emphasis of the program continued to be on the development of detailed projections to 1970 of final demand (consumer expenditures, business investment, residential construction, government expenditures, and net exports), output, and employment, using input-output as the framework for the projections.
Considerable progress was made during the year in developing projections of gross national product and distributing GNP into the detailed components of consumer expenditures, government expenditures, and other categories. The work on projecting input-output relationships, used to convert final demand into direct and indirect industry output, was nearing completion. Preliminary projections of labor productivity, needed to convert output into employment requirements, were completed and are being reviewed.
Results of the project are expected to be released during the 1966 fiscal year.
INTERNATIONAL AFFAIRS
During the year, monographs on labor law and practice in 11 countries of Europe, Asia, Africa, and Latin America were published and placed on sale. These additions to the series extended to 28 the number of comprehensive studies of this kind available to the public. Four additional studies in this series were completed in manuscript form.
The Bureau published two compendiums of digests of labor conditions abroad, one covering 36 countries of Asia and Australasia (the individual digests having
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appeared previously), and a second covering 26 countries (or territorial components) of the Western Hemisphere. Individual digests on the Western Hemisphere countries were also issued. Digests of labor conditions in 28 European countries and the Soviet Zone of Germany were completed in manuscript form.
The Bureau also prepared an analysis of European policies to combat poverty, a study of labor problems in Tunisia, a 175-page draft bibliography on labor in Africa, and a cumulative index (1956-63) to the Bureau’s monthly publication, Labor Developments Abroad.
The usefulness of the Bureau’s publications on foreign labor was indicated by the inclusion of the labor law and practice monographs in a set of microfilms deposited in Department of Commerce field offices and in U.S. Government posts overseas, as basic sources to be used in the promotion of U.S. private investment in developing countries; and by the reprinting or abstracting of a number of Bureau articles in foreign publications.
Special support services were provided to U.S. Government agencies concerned with foreign affairs, including services to the Department of State, through the preparation of comments on the labor aspects of U.S. country policy papers; to the U.S. Information Agency, on the labor aspects of overseas information programs; to the U.S. delegation to the International Labor Organization conference in Geneva, on the labor policies of Communist governments; and to two interdepartmental committees, dealing respectively with U.S. policy on tariff and trade negotiations and the labor policies of U.S. employers abroad.
The Bureau continued its work on international statistical comparisons of labor, including the preparation of papers on unemployment rates in the United States and abroad, the use of job vacancy statistics in selected foreign countries, trends in unit labor costs in manufacturing in the United States and 8 other industrialized countries, trends in wholesale and consumer prices in 12 countries since 1958, man-days lost through strikes at home and abroad, and the extent of poverty in the United States and 4 highly industrialized countries of Western Europe. The staff also made substantial progress in the study of worktime required in the United States and foreign countries to buy consumer goods and services. Discussions were conducted with Japanese authorities regarding progress on a study of wages in the United States and Japan.
The Bureau provided long-term training in labor and price statistics (ranging from 6 months to 1 year) to 37 statisticians and economists from 20 developing countries in various parts of the world. The training program is conducted under the sponsorship of the Agency for International Development (AID). In addition, the Bureau cooperated with the Bureau of Labor Statistics of the Department of Labor of the Commonwealth of Puerto Rico in conducting a Spanish-language course in labor and price statistics, also under AID sponsorship. This course included 10 months in Puerto Rico and a 1-month program on the mainland of the United States. In its first 2 years, the course in Puerto Rico trained 25 participants from 13 Latin American countries.
The Bureau also received over 600 foreign visitors from all parts of the world for short-term visits of 1 day or longer. Such visitors were provided a summary
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review of statistics relating to the economic condition of workers in the United States, together with discussions or materials relating to the specific interests of the visitors. Those who requested short-term training in labor statistics were provided such training on a specialized basis.
A technical manual on “Conducting a Survey of Employment, Hours, and Earnings in Developing Countries” was completed. It will be published in early fiscal 1966, and will represent the fourth in a series of manuals on labor statistics prepared by the Bureau for AID. The manuals are designed primarily for use in developing countries.
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WAGE AND HOUR AND PUBLIC 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 under PCA....................... 185
Special minimum wages............................................. 186
Special minimum wage certificates............................. 186
Puerto Rico, Virgin Islands, and American Samoa............... 187
PCA determinations............................................ 188
Economic studies.................................................. 189
Proposed legislation.............................................. 190
Charts
1. Amount of minimum wage and overtime underpayments disclosed, fiscal years 1956-65...................................... 178
2. Number of underpaid employees disclosed, fiscal years 1956-65.. 179
3- Number of establishments against which complaints were received, fiscal years 1956-65...................................... 180
Appendix I
Tables
A. Investigation findings under the Fair Labor Standards and Public Contracts Acts, by fiscal year, 1956-65....................... 192
B. Investigation findings under the Fair Labor Standards and Public Contracts Acts, by region, fiscal year 1965....................... 193
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 1965......................................................... 194
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Tables Page
D. Number of minors found employed in violation of hazardous occupations orders issued under the Fair Labor Standards Act, fiscal year 1965.................................................... 195
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 1965..................... 196
F. Findings in regular safety and health inspections made under the
Public Contracts Act, by region and State, fiscal year 1965.... 197
G. Number of learner certificates in effect on June 30, 1965, classified by industry, type of regulation, and type of certificate.... 199
H. Minimum hourly wage rates established for Puerto Rico as of
June 30, 1964, and June 30, 1965............................... 200
I. Minimum hourly wage rates established for the Virgin Islands as
of June 30, 1965................................................ 204
J. Minimum hourly wage rates established for American Samoa as
of June 30, 1965................................................ 204
K. Summary of minimum wage determinations applicable under the
Public Contracts Act, June 30, 1965............................ 205
L. Number and value of unclassified contracts subject to the Public Contracts Act, by fiscal year, 1937-65.............................. 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 1965-... 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 1965........................................................... 208
Appendix II
Child labor standards................................................ 209
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Wage and Hour and Public Contracts Divisions
792-672— 66——12
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WAGE AND HOUR AND PUBLIC CONTRACTS DIVISIONS
This report recounts major activities in the enforcement and administration of the Fair Labor Standards Act and Walsh-Healey Public Contracts Act during the 1965 fiscal year.
Over 29.5 million employees are subject to the minimum wage requirements of the FLSA, the more widely applicable of the two laws. The vast majority of these workers are covered by the act because of their individual engagement in, or production of goods for, interstate commerce—the traditional grounds for coverage. Such employees, unless specifically exempt, must be paid a minimum wage of at least $1.25 an hour and overtime compensation of not less than one and one-half times their regular rate of pay for all hours worked in excess of 40 in a workweek. The remaining covered workers—about 3.6 million, mostly in retailing—were brought under the act in 1961, when the Fair Labor Standards Amendments of 1961 extended coverage to certain large enterprises and narrowed or eliminated a few exemptions. Provisions of these amendments effective September 3, 1964, increased the minimum wage for workers in such employment from $1 to $1.15 an hour and reduced the maximum workweek standard beyond which overtime pay is due from 44 to 42 hours. Two months after the fiscal year’s end—on September 3, 1965—the minimum wage, maximum hours, and overtime pay standards for such employment were to become the same as those already in effect for traditional coverage.
The 1965 fiscal year was the first full year of operation under the equal pay amendments to the FLSA, which had become generally effective June 11, 1964. The equal pay requirements prohibit employers from discriminating on the basis of sex in the payment of wages for equal work within an establishment. When subject to a minimum wage, employees of one sex must not be paid wages at rates lower than those paid employees of the other sex for work on jobs that require equal skill, effort, and responsibility and that are performed under similar working conditions. The equal pay provisions became fully effective on June 11, 1965, when a deferment in the case of certain collective bargaining agreements became inoperative.
The FLSA has another basic standard—its requirements with respect to child labor. In general, the act prohibits the employment in covered jobs of children under 16 years of age. For occupations declared hazardous by the Secretary of Labor, the minimum is 18 years. Boys and girls 14 and 15 years of age may be employed outside school hours in certain occupations and under specified conditions.
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The Public Contracts Act applies to employees working on Government supply contracts in excess of $10,000. This law contains minimum wage, overtime pay, child labor, and safety and health provisions. Under its minimum wage requirements, a covered contractor must pay not less than the prevailing minimum wage determined by the Secretary of Labor to be applicable to the industry whose products he is furnishing. Unless a higher minimum wage determination has been established for the industry, the prevailing minimum rate is $1.25 an hour. Not less than one and one-half times the employee’s basic rate must be paid for hours worked over 8 a day or 40 a week, whichever is the greater number of overtime hours. Boys under 16 years of age and girls under 18 may not work on covered contracts. The law also requires that no work be performed under conditions which are unsanitary or hazardous or dangerous to the health and safety of employees engaged in the performance of the contract.
Making investigations for compliance with either or both laws, the Divisions continued their vigorous enforcement program. Approximately $74.5 million was revealed to be owed employees, including $156,000 under the relatively new equal pay requirements. Employers agreed to pay over $24 million to underpaid workers as a result of the activities of the Wage and Hour and Public Contracts Divisions.
Uniform application of the acts is assured by the policies and plans developed by the Divisions’ national office in Washington, D.C. Investigations are made by the field organization, consisting of 11 regional offices in major cities, an area office in Puerto Rico, 101 field offices, and over 300 field stations throughout the United States. Two new field offices were opened this year, in Charlotte, N.C., and Sacramento, Calif. Funds were provided for 1,866 positions, of which over four-fifths were in the field. An increase in the workload, due primarily to the equal pay provisions, led to authorization to hire and train 27 new investigators. Training was also given to all employees who would have responsibility for administering and enforcing a wage and salary stabilization program in the event of a national emergency and to executive reservists assigned to this program.
Economies in operations were achieved, and the time required to complete the processing and payment of back wages recovered for employees under the FLSA and PCA was reduced through decentralizing the activities involved to the regional offices. Further significant savings were obtained by increasing participation in the General Services Administration motor pool system instead of using privately owned vehicles for official travel, permitting a reduction of approximately $100,000 in the annual amount of travel funds requested in the budget.
ENFORCEMENT BY INVESTIGATION
In fiscal year 1965, the WHPC Divisions completed 59,625 investigations under the FLSA, the PCA, or under both laws. Disclosed were underpayments of $74.5 million involving 406,333 employees and the illegal employment of 18,605
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minors. Inspections for compliance with the safety and health provisions of the PC A were made in 3,278 industrial establishments.
The total number of investigations made this year increased by 3,255 over fiscal 1964. The man-hours available for investigations were approximately the same as in fiscal year 1964.
Underpayments
Total underpayments disclosed by investigations in this fiscal year rose to $74.5 million, $14.7 million over last year. Overtime underpayments amounted to $46.2 million, an increase of $10.7 million; minimum wage underpayments amounted to $28.1 million, an increase of $3.9 million. (See chart 1 and appendix tables A and B.)
A total of 406,333 employees were underpaid; 209,930 were paid less than the applicable minimum wage and 295,789 were paid less than full overtime compensation. (See chart 2.)
The Equal Pay Act, which amended the FLSA, became generally effective June 11, 1964, and fully effective 1 year later. Enforcement of the equal pay provisions is integrated with the regular FLSA investigation activity. Underpayments attributable to violations of the equal pay provisions amounted to $156,202 and affected 960 employees.
The sharp rise in the disclosure of underpayments (about 25 percent over fiscal year 1964) resulted largely from further improvements in scheduling procedures, with continued emphasis on using available manpower resources to investigate the industries and establishments where violations are most likely to be found. Another important reason is that most investigations made in fiscal year 1965 spanned basic changes (on September 3, 1963, and on September, 3, 1964) in the FLSA minimum wage and maximum hour standards.1 The average underpayments per investigation amounted to about $1,250, as compared with some $1,060 in the previous year.
Complaint Activity
Complaints and complaint investigations continued at a high level. The Divisions received complaints alleging that 21,173 establishments were not complying with the acts. (See chart 3.)
Over 47 percent of the total available investigation time was devoted to complaint investigations.1 2 Of the $74.5 million in underpayments, $43.3 million was disclosed in complaint investigations. This is an increase of $5.6 million over fiscal year 1964. Investigation time not spent on complaints was spent in making other investigations in industries and establishments where serious violations were considered likely.
1 Investigations generally cover a 2-year period because of the statute of limitations.
2 A 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 1956-65
Minimum wage underpayments
Unpaid overtime compensation
Back-Wage Payments
As a result of investigations this fiscal year, employers agreed to pay 195,882 employees a total of $24,016,455 in illegally withheld wages. In addition, many multi-unit firms paid substantial amounts to employees as a result of their own self-audits following an investigation of one or more units by the Divisions.
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Chart 2. Number of underpaid employees disclosed, fiscal years 1956-65
One trucking firm paid almost three-quarters of a million dollars in this manner. Another firm reported that it paid $38,417. A sampling of similar reports shows payments ranging from $1,668 to $16,864. In such cases, employers compute and pay the back wages to employees of branches or subsidiaries without the expenditure of further investigation time by the Divisions.
The FLSA provides other remedies for recovering underpayments in addition to the voluntary payment of back wages under the supervision of the Administrator. Section 16(b) provides that 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
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Chart 3. Number of establishments against which complaints were received, fiscal years 1956 — 65
also allow the cost of the action and reasonable attorneys’ fees. Under section 16(c), the Secretary of Labor may sue the employer for unpaid back wages on the written request of the employee, provided no unsettled issue of law is involved. Section 17 provides that the Secretary of Labor may request a court injunction to restrain an employer from violations of the act and from the withholding of wages found by the court to be due. An employee may not bring an independent action
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under section 16(b) in cases where the Secretary of Labor has sued for his back wages under section 16(c), nor can the employee bring his own suit 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, it is the Divisions’ policy, which has met with court approval, to notify employees as far as practicable of their rights under section 16(b) and 16(c) of the FLSA. In following this policy, WHPC does not encourage or discourage employees in the exercise of these rights; the matter is left entirely to the discretion of the employees involved.
Employers who owe money because of violations of the PCA are liable to the Federal Government for the amounts of the underpayments; such amounts may be withheld from any money owed to the employer by the Government. Also, the Government may sue for the recovery of illegally withheld wages in the courts. Back wages collected under the provisions of the PCA are distributed directly to the employees concerned.
Legal Actions
During fiscal year 1965, a total of 1,462 cases were filed under the FLSA and the PCA. Of the 1,413 civil actions filed, 1,351 were filed under section 16(c) or 17 of the FLSA or section 2 of the PCA; 62 were other types of civil actions. Twenty-five criminal cases were filed under the FLSA, and 24 administrative hearings were instituted under the PCA. A total of 1,482 cases were closed during the fiscal year, including 583 in which payment of back wages was ordered or agreed to. Thirty-three criminal cases and 67 contempt cases under the FLSA were closed, and 27 PCA administrative hearings were completed. Injunctions were obtained in 1,403 cases, 1,240 of which were contested. Fines in criminal and contempt cases totaled $103,000. Restitution of back wages through legal action amounted to $4,283,456 under the FLSA and $195,745 under the PCA, making a total of $4,479,201.
Child Labor Violations
Child labor investigations disclosed 18,605 minors illegally employed.
Sixteen is the basic minimum age for employment under the child labor provisions of the FLSA. This includes employment in agriculture during school hours. The act establishes an 18-year minimum age for employment in occupations declared hazardous by the Secretary of Labor. There are 17 hazardous occupations orders presently in effect. Minors 14 and 15 years old may be employed outside school hours in a variety of jobs, including many occupations in retail, food service, and gasoline service establishments. They may not be employed in manufacturing, mining, or most processing occupations or in workrooms or workplaces where manufacturing or processing takes place. Hours of work are limited daily and weekly, and such minors may not work before 7 a.m. or after 7 p.m. There are five exemptions to the child labor provisions of the act: The parental exemption; the exemption for minors delivering news
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papers to the consumer; for minors employed as actors, and performers in motion picture, theatrical, radio, and television productions; minors employed in making Christmas wreaths; and minors employed in agriculture outside of the school hours for the school district where such minors live while so engaged.
Of the 11,529 3 minors found illegally employed in nonagriculture, 4,865 or 42 percent were youths under 16 years of age employed in violation of the FLSA; 6,575 or 57 percent were 16- and 17-year-olds employed in hazardous occupations; and 89 were employed in violation of the child labor provisions of the PCA only. (See appendix tables C and D.) Of the 7,076 4 minors under 16 found illegally employed on farms during school hours, 5,120 or 72 percent were under 14 years of age, and 1,929 or T1 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 on contracts let by the Federal government for materials, supplies, articles, or equipment in amounts exceeding $10,000. Ninety-two minors were found employed contrary to this act.
Safety and Health Inspections
Safety and health inspections under the PCA were conducted in 3,278 establishments in fiscal year 1965. In addition to these inspections, a total of 1,383 followup inspections were conducted to insure correction of unsafe conditions. The Divisions’ safety engineers made 1,577 safety and health inspections. State safety inspectors made 1,498 inspections pursuant to cooperative agreements with 6 States: California, Connecticut, Massachusetts, New Jersey, New York, and Rhode Island. Approximately half the contractors who perform on Government contracts subject to the PCA are located in these six agreement States. The Federal Bureau of Mines conducted 203 mine inspections under its agreement with the Divisions. To avoid duplication of investigative work, this agreement was expanded during 1965 to include certain mines other than coal wherein the FBM has authority to make safety and health investigations under title 30, part 231, of the Code of Federal Regulations. Included are mines other than coal in the public domain, Indian lands, and other Government leased mining operations.
Safety and health violations were disclosed in 1,480 of the 1,577 establishments inspected by the Divisions’ safety engineers. The FBM reported unsafe conditions in 96 of the 203 mines which the Bureau inspected. (See appendix table F.) Safety and health violations were involved in 23 hearing actions under the PCA; 3 of these were coal mines. As a result of these hearings, three firms became ineligible to perform on Government contracts for 3-year periods.
COMPLIANCE THROUGH EDUCATION
The major objective of the Divisions’ educational activities was to promote voluntary compliance with the September 1964 changes in the FLSA’s minimum
3 Included in this total are 92 minors employed contrary to the child labor provisions of the PCA; of this total, 89 were employed in violation of the PCA only and 3 in violation of both acts.
* Includes 27 minors for whom no age was reported.
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wage and maximum workweek standards and with the equal pay amendments which had become generally effective several weeks before the start of the fiscal year. In view of the recentness of the equal pay requirements, informational material prepared throughout the year emphasized the prohibition of wage discrimination based on sex and evoked much public interest in this new field of Federal legislation relating to private employment.
By the beginning of the fiscal year, more than 1 million employers had already been mailed a brochure which contained a letter from the Administrator alerting them to the revised statutory requirements and providing the official notice to employees which must be posted by establishments having workers subject to the minimum wage or overtime pay provisions. The general public was informed about the new equal pay standard and other changes in the law by such means as poster-flyers displayed in the Nation’s post offices, scripts, and spot announcements “aired” by radio and television, and news releases for the daily, weekly, and labor press. The facilities of the mass communications media were obtained as a public service at no cost to the Divisions.
The Divisions directed much effort to informing employers and employees in specific industries about their responsibilities and rights under the law. Speeches were made by representatives of the national and field staff at national, regional, and local meetings of unions and employer associations and organizations representing a diversity of industries and businesses. Pieces were written for trade magazines and the labor press. Additionally, the WHPC investigators, when visiting establishments, explained to both employers and employees how the law applies in specific factual situations, showed employers how to come into compliance where the need arose, and supplied pertinent publications. The Divisions also responded to thousands of requests for information submitted by mail, by telephone or by visitors to Wage-Hour offices.
As necessary, interpretative bulletins, regulations, and nontechnical pamphlets were revised to reflect the changed requirements of the FLSA. The Divisions not only were active in disseminating these publications to business firms, unions, workers, and others with immediate interest in the application of the law, but also secured the cooperation of trade associations, labor organizations, and civic groups in distributing such publications to their members.
With regard to the child labor provisions, the Divisions undertook educational campaigns in the fall and spring to advise employers, farmers, crew leaders, parents, teachers, and children as to the conditions under which young people may be lawfully employed, without detriment to their health and well-being. In recognition of the importance of youngsters’ obtaining an education, stress was placed on provisions which restrict the employment of children on farms to times when school is not in session.
The Divisions’ national and field office personnel participated actively in President Johnson’s 1965 youth opportunity campaign to encourage the Nation’s employers to add at least 750,000 new summertime jobs for American youth who were either entering the permanent work force or seeking summer employ
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ment which would enable them to resume their formal education at the close of the vacation period.
As the fiscal year drew to a close, preparatory work was being undertaken to develop information programs which would inform the public of the September 1965 changes in the FLSA, i.e., the final revisions in the minimum wage and maximum workweek standards resulting from the Fair Labor Standards Amendments of 1961. The bulk of over 1 million brochures with posters, similar to the issuance in connection with the September 1964 statutory changes, had been mailed to covered employers by June 30.
INTERPRETATIONS AND REGULATIONS
The Divisions’ interpretative bulletins contain official interpretations with respect to the application of FLSA provisions in described circumstances. They indicate the construction of the law which the Secretary of Labor and the Administrator believe to be correct and which will guide them in performing their duties under the act unless and until they are otherwise directed by authoritative court decisions or conclude, on reexamining a position, that it is incorrect. Regulations are issued pursuant to certain specific sections of the act which vest rulemaking authority in the Secretary of Labor.
Equal Pay
Section 6(d) of the Fair Labor Standards Act (the Equal Pay Act of 1963) became generally effective on June 11, 1964. Application was deferred, however, as to employees covered by bona fide collective bargaining agreements which were in effect on May 11, 1963, and which did not terminate until some date after June 11, 1964. For employees covered by such agreements, the equal pay provisions became effective on the termination date of the agreement or on June 11, 1965, whichever occurred first. The equal pay amendment became fully effective, therefore, on June 11, 1965.
An expanded interpretative bulletin, title 29, part 800 of the Code of Federal Regulations, which incorporates all decisions and interpretations made since the bulletin was first published in April 1964, had been prepared and at the end of the fiscal year was being put in final form for publication in the Federal Register.
’'Regular Rate”
Revisions of the interpretative bulletin on overtime compensation, part 778, were published in February 1965. These revisions had the purpose chiefly of clarifying the Department’s position on so-called Belo plans guaranteeing payment for a stipulated number of hours per week pursuant to section 7(e) of the FLSA. The revisions modified positions with respect to including in the regular rate certain payments made to employees for time spent in travel to the job when such travel time need not be counted as hours worked. In addition, the revisions reorganized and clarified the material in the bulletin.
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Activity continued on fringe benefit questions. As interest in such benefits continues to be reflected in collective bargaining and in wage administration generally, new types of benefits are added and dollar amounts are increased. Certain of these payments may be excluded from the regular rate on which overtime pay is computed. Although prior approval is not required, employers frequently request approval of benefit plans as assurance that payments made under them will not affect the employees’ regular rate. Most requests have pertained to new and increased supplemental unemployment benefit plans. Of particular interest have been amendments to such plans under which funds not needed for supplementary unemployment benefits are used to provide longer paid vacations or yearend bonuses.
Exemptions
The voluminous record of the hearing held in June 1964 on the status of driver salesmen as outside salesmen under the section 13(a)(1) minimum wage and overtime pay exemption was analyzed. It was tentatively concluded that no change in the regulations was needed, but that more detailed interpretation of the regulations as they apply to driver salesmen would be in order. Proposed interpretations were published on June 22, 1965. As a result of requests from management and labor representatives, the period for filing comments was extended to September 15, 1965.
Consideration was given to the record of the hearing held in January 1964 to determine whether certain operations on cut flowers in Florida constituted a seasonal industry under section 7(b)(3), which provides a partial overtime pay exemption for industries found to be seasonal in nature. It was concluded that it had not been shown that the requirements for exemption were met, and a notice of denial was published in the Federal Register on July 24, 1964.
Comments were received and analyzed on the proposed regulations published in June 1964 concerning the overtime pay exemption in section 13(b)(11) of the FLSA for local delivery drivers and drivers’ helpers paid on the basis of trip rates or other delivery payment plan. The regulations as originally proposed did not permit applying the exemption to businesses which did not have at least 1 year of operation under a trip-rate payment plan. In addition, they required that, where a union was involved, the employer and union jointly petition for a determination that the exemption was applicable. On the basis of the comments, the regulations were modified to provide for an interim finding in the case of businesses operating under a new plan and for written notice to the union, where one might be involved. The regulations were scheduled for publication in final form shortly after the end of the fiscal year.
Safety and Health Regulations under PCA
An advisory committee is to be appointed to advise the Secretary of Labor on the Department’s responsibility for safety and health, including the safety
185
and health standards under the PCA. The membership will consist of representatives from management, labor, safety associations, and colleges and universities. The committee will consider the recommendations made during the public hearing held in March 1964 concerning proposed revisions of regulations 41 CFR, part 50-204, Safety and Health Standards for Federal Supply Contracts.
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. After review and detailed analysis, the proposed revision to the radiation standards concerning “special provisions for certain States” was issued in April 1965. Comments have been received and at the year’s end were being reviewed with the intent of making appropriate revision of the radiation standards in the coming year.
SPECIAL MINIMUM WAGES
Section 14 of the FLSA provides for the issuance of certificates (to the extent necessary to prevent curtailment of opportunities for employment) to permit payment of less than the statutory minimum wage for the employment of learners, apprentices, messengers, full-time students in retail or service establishments, and handicapped workers. Regulations issued in accordance with the act set forth the terms and conditions for the issuance and use of such certificates.
Minimum wage rates for industries in Puerto Rico, the Virgin Islands, and American Samoa are established by tripartite industry committees.
The Secretary of Labor, as provided by the PCA, determines the prevailing minimum rates for 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.
At the end of the fiscal year, 1,515 certificates were in effect authorizing the employment of an estimated maximum of 35,065 learners at special minimum wages in 1,404 establishments. (See appendix table G.)
Student-Learners, Student-Workers, and Full-Time Students
A total of 4,182 certificates, each authorizing the employment of an individual student-learner at special minimum wages, were issued 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.
186
In effect at the end of the fiscal year were T1 student-worker certificates permitting educational institutions to pay special minimum wages to 1,353 students employed in school-operated shops in order to enable the students to defray part of their school expenses.
Reappraisal in fiscal year 1964 of experience under the full-time student regulation had indicated that no substantive changes in the regulation were needed. Forms and procedures were revised in fiscal year 1965 to expedite handling of the increased numbers of applications that resulted from the increase from $1 to $1.15 an hour in the statutory minimum wage for retail stores covered as a result of the 1961 amendments. There were 3,007 full-time student certificates in effect at the end of the fiscal year.
Handicapped Workers
The number of certificates issued permitting payment of special minimum rates to handicapped workers employed in regular commercial industry decreased 12 percent over the previous year. At the close of the fiscal year, a total of 3,370 such workers were employed in over 1,200 establishments.
Vocational rehabilitation agencies and the Veterans’ Administration continued to increase their use of the authority to issue temporary handicapped worker certificates for on-the-job trainees, with major emphasis being placed on training the retarded. Of the 361 certificates issued by these agencies during the year, approximately 60 percent were for mentally retarded trainees.
Sheltered Workshops
At the close of the fiscal year, a total of 799 workshops, employing over 43,000 handicapped persons, held certificates providing for the payment of special minimum wages. Since 1955, both the number of certificated workshops and of the handicapped workers they employ have approximately tripled. Over this period, the workshops serving the mentally retarded have had by far the greatest increase.
To assure compliance with the terms of certificates and the requirements of the law, a substantial number of sheltered workshops are included in the Divisions’ investigation program. Approximately 18 percent of the certificated workshops were investigated during the year.
The Secretary’s Advisory Committee on Sheltered Workshops recommended near the end of the year that the Department conduct a study in depth of workshops to provide comprehensive information for determining future actions in this rapidly changing field. The recommendation was under consideration as the year concluded.
Puerto Rico, Virgin Islands, and American Samoa
The policy of the FLSA with respect to minimum wages in industries or enterprises engaged in interstate commerce or in the production of goods for interstate commerce in Puerto Rico, the Virgin Islands, and American Samoa is to reach the applicable statutory minimum as rapidly as is economically feasible without substantially curtailing employment in the industry. Industry committees are
187
appointed by the Secretary of Labor. These committees, which are equally representative of the public and of employees and employers in the industry, are to recommend the highest minimum hourly wage rates which they determine will not substantially curtail employment nor give any industry in Puerto Rico, the Virgin Islands, or American Samoa a competitive advantage over industry located elsewhere in the United States. The act requires that minimum wage rates for industries in these islands be reviewed at least once during each biennial period.
Under the wage-order program for Puerto Rico, minimum wage rates are cur-rendy in effect for employees in 154 wage-order classifications in 31 industries. During fiscal year 1965, all minimum wage rates below $1.25 an hour were reviewed. Twenty-nine industry committees were appointed for review purposes, with two of the committees reviewing minimum wage rates in two industries each.
Prior to the review of minimum wage rates in Puerto Rico in fiscal year 1965, employees in 41 wage-order classifications were subject to the minimum wage rates applicable on the mainland. At the conclusion of the fiscal year 1965 review, employees in 53 wage-order classifications were subject to the minimum wage rates applicable on the mainland. Appendix table H shows the minimum hourly wage rates in effect at the beginning and the end of fiscal year 1965.
Minimum piece rates applicable to homeworkers in Puerto Rico were increased commensurately with the increases in the hourly rates.
Minimum wage rates in the Virgin Islands and in American Samoa were not reviewed during fiscal year 1965, but were to be reviewed in the first half of fiscal year 1966. Current minimum wages rates in effect in the Virgin Islands are shown in appendix table I; those in American Samoa, in appendix table J.
PCA Determinations
With the view toward preventing unfair competitive advantage and the depression of wage standards, the PCA directs the Secretary of Labor to determine the minimum wages that prevail on similar work or in the particular or similar industries or groups of industries operating in the locality where materials are to be manufactured for or furnished to the Government. Payment of at least the minimum wages that are determined by the Secretary to be prevailing, is required on all covered contracts.
Currently, there are 24 effective determinations in excess of $1.25 an hour— the generally applicable minimum wage under the FLSA. (See appendix table K.) All activities subject to the act which are not covered by specific industry determinations are subject to a determination of $1.25 an hour.
Federal procurement subject to the PCA, reported to the Divisions by procurement agencies, was valued at more than $19 billion in fiscal year 1965. (See appendix table L.) This total does not include classified contracts, which were not reported to the Divisions for statistical tabulation.
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ECONOMIC STUDIES
The Divisions undertook a series of economic studies during fiscal year 1965 to evaluate the minimum wage and maximum hours standards of the FLSA and to appraise the effects of the 1961 amendments to the act. The following studies were completed during the year and the results published in the Secretary’s report to the Congress in January 1965, as required by section 4(d) of the act.
Studies were made in manufacturing and wholesale trade to provide current information for appraising the feasibility of raising the level of the minimum wage or amending the workweek standard in industries which became subject to the $1.25 minimum wage in September 1963. Nationwide surveys provided data, as of March 1964, on distributions of weekly hours of work and earnings for all nonsupervisory employees. Such information was obtained for individual industries and industry groups, as well as for overall manufacturing and wholesale trade.
A study was made in 15 low-wage nonmetropolitan areas of the South to evaluate the effects on employment and wages resulting from two successive increases in the Federal minimum wage emanating from the 1961 amendments to the FLSA. The survey, conducted in March 1964, provided data on the distribution of nonsupervisory employees by average hourly earnings, comparable to those obtained in October 1960, October 1961, and June 1962. Such findings permitted an examination of the changes in wages and employment in industries generally subject and not subject to the FLSA, on an area basis, for periods before and after the effective dates of the $1.15 and $1.25 minimum rates.
A study was made to evaluate the effects of the 44-hour workweek standard in the segment of retail trade which became subject to the FLSA in September 1961. The amendments required premium payments of one and one-half times the regular rate of pay for all hours over 44 a week effective September 3, 1963; over 42 hours effective September 3, 1964; and over 40 hours effective September 3, 1965. A nationwide survey was conducted in June 1964 to obtain information on the distribution of weekly hours of work of nonsupervisory employees in covered retail stores. The findings for that period were matched with findings in a June 1962 survey to determine the extent of changes in employment and hours of work during the period in which the 44-hour standard became effective.
At the request of the General Subcommittee on Labor of the House Education and Labor Committee, the Divisions made a study of the anticipated effects of the application of a minimum wage to employees of private hospitals, currently exempt under section 13(a)(2)(iii) of the FLSA. Special tabulations of data obtained by the Bureau of Labor Statistics were used as a basis for estimates of coverage effects.
Work was also undertaken in connection with reports which are to be submitted to the Congress in January 1966. The first three of the following were involved:
The Divisions engaged in making a study preliminary to a report on employment, wages, and hours of work in nursing homes and homes for the aged to
792-672—66----13 189
determine the probable effects of applying a minimum wage to employees in these institutions as well as in hospitals. The Bureau of Labor Statistics conducted the field survey. The data will be analyzed and a report submitted to the Congress in January 1966.
In June 1965, 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 farm workers on large farms. The report, to be based on an analyses of the data, is intended for use in evaluating legislative proposals to establish minimum wage standards for hired farm workers on large farms.
The Divisions initiated a study of earnings and hours of work, including both on-duty and driving hours, of motor carrier employees presently exempt from the overtime provisions, under section 13(b)(1) of the FLSA. At the request of the Divisions, the Bureau of Labor Statistics conducted a survey of common and contract carriers of property and passengers, and of private carriers in the household furniture and distilled liquor (except brandy) industries. The survey data were being analyzed and the subsequent report will be for use in evaluating both the effects of the present section 13(b)(1) exemption and those of any proposed modification of the exemption. A report will be submitted to the Congress in January 1966.
The Divisions completed the first step of a three-phase study of wage and bidding practices in two industries—office, computing, and accounting machines, and manifold business forms—and of the extent to which changes in wage structure and bidding practices in these industries are related to prevailing minimum wage determinations under the PCA. A preliminary analysis of statistical material obtained in a survey by mail questionnaire was made as a basis for the further phases of this study to be conducted in fiscal year 1966. These will include followup field surveys of affected establishments and labor market area studies to determine any indirect effects of the minimum wage determinations on wages in labor markets in which affected plants of these industries are located.
PROPOSED LEGISLATION
On May 18, 1965, the President sent a labor message to the Congress in which he included recommendations to amend the FLSA to extend its protection to an additional 4(4 million workers and to restrict excessive overtime work through the payment of double time. On the same day, bills embodying the President’s recommendations were introduced in the Congress—H.R. 8259, H.R. 8260, and H.R. 8261 in the House of Representatives and S. 1986 in the Senate.
The Administration bills provided for extending minimum wage and overtime protection to workers in retail, laundry, hotel, motel, motion picture theater, restaurant, taxicab, hospital, construction, and other enterprises and in logging enterprises. The additional coverage would be accomplished by amending the definition in the FLSA of an “enterprise engaged in commerce or the pro
190
duction of goods for commerce” to include all such enterprises which have employees engaged in those activities and which have an annual gross volume of sales of not less than $250,000, and by removing certain exemptions. The bills also contained provisions to: consolidate and clarify the exemptions for the handling and processing of agricultural commodities; extend overtime protection to employees of transit companies and gasoline service stations; and require double time for hours worked in excess of 48 a week, decreasing to hours in excess of 45 a week over a 3-year period, for employees who received overtime protection prior to the enactment of the proposed amendments.
On May 25, 1965, the Secretary of Labor testified in support of H.R. 8259 before the General Subcommittee on Labor of the House of Representatives. In his testimony, he stated that the original Fair Labor Standards Act of 1938 was a commitment to improve living standards by eliminating substandard working conditions in employment subject to Federal authority over interstate commerce. He pointed out that the law had not been kept in line with the advancing economy. He called attention to studies conducted by the Wage and Hour Division on the effects of the 1961 amendments to the FLSA which indicated that the economy adjusted easily to the required increases in the minimum wage. Even in the lowest wage, nonmetropolitan areas the increase in wages for workers at the low end of the wage scale was accompanied by a net increase in employment. Also, studies to measure the effects of extending the minimum wage to a group of workers not previously covered had indicated that the amendments succeeded in raising the wages of workers earning less than the minimum wage, and that employment in these newly covered segments did in fact go up.
In support of the double time proposal, the Secretary stated that its purpose was not to increase individual earnings, but to reduce unemployment. He stated that this was the original purpose of the time and one-half provision; however, this provision was no longer an effective deterrent to excessively long hours of work. In many instances overtime work at time and one-half was less costly to an employer than the hiring of additional workers. Moreover, the growth of supplementary benefit costs continued to reduce the effectiveness of the time and one-half provision, as the premium rate for overtime was computed primarily on cash wages, not on cash wages plus fringe benefit costs.
As the fiscal year ended, hearings on H.R. 8259, which had commenced with the Secretary’s testimony, were continuing. Hearings on S. 1986 were scheduled to begin before the Subcommittee on Labor of the Senate Committee on Labor and Public Welfare early in the next fiscal year—July 1965—with the Secretary as the first witness.
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APPENDIX I Appendix table A.—Investigation findings under the Fair Labor Standards and Publie Contracts Acts, by fiscal gear, 1956-65
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192
Appendix table B.—Investigation findings under the Fair Labor Standards and Public Contracts Acts, by region, fiscal year 1965
withheld employers to pay i Number of employees involved 195,882
Illegally wages that agreed । Amount $24, 016,455 SggtfSWsW WWC^WWCOCMCMCM
Equal pay $156,202
ayments dis Overtime compensation $46,191, 263 w cd ci cdcd cdd t-“>o
o Minimum wages $28,104, 994 wwedw cWwwww
Amount Total $74,452,459 of w cdt^-rf ®WoMrt-
I CD Not paid equally under 6(d) < § S
ses found un< Not paid full overtime compensation 295, 789
Number of employe Paid at less than the minimum wage rate 209, 930
Total number underpaid 5 406, 333
Number of employees subject to minimum wage a 2, 998,913 8888S§gg§§28
Number of establishments 59, 625 cdr-~cd-*cdTK^CRt^id-^
Region All regions I. Boston II. New York City III. Chambersburg IV. Birmingham V. Cleveland VI. Chicago VII. Kansas City VIII. Dallas IX. San Francisco X. Nashville- XI. Atlanta ! *
*—3
792-672—66---14
193
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 1965
Region and State Number of minors illegally employed
Total Under 16 years of age 16-17 years of age in hazardous occupations
All regions i 11,440 i 4,865 6,575
I. Boston .. _ .. _ 457 133 324
Connecticut _ . . . 45 9 36
Maine - 25 8 17
Massachusetts .. 196 58 138
New Hampshire - - .. - 114 38 76
Rhode Island _. - .. . 40 6 34
Vermont . 37 14 23
II. New York City 780 240 540
New Jersey .. _ 459 64 395
New York! _ ... 321 176 145
III. Chambersburg - - 894 506 388
Delaware... . . . _ 37 25 12
District of Columbia . — _ 21 10 11
Maryland . .. . . _ 147 70 77
Pennsylvania 689 401 288
IV. Birmingham 1,176 519 657
Alabama - . 387 159 228
Arkansas.. . — 294 115 179
Louisiana . . 293 139 154
Mississippi 202 106 96
V. Cleveland 938 355 583
Michigan . 382 142 240
Ohio 556 213 343
VI. Chicago 519 184 335
Illinois 198 67 131 60
Indiana 100 40
Minnesota .... 130 57 73
Wisconsin .. . 91 20 71
VII. Kansas City 701 353 348
Colorado 100 97 52 48
Iowa .. 42 55
Kansas . ... .. _ 181 83 98
Missouri 133 83 50
Nebraska . 98 42 56
North Dakota 4 0 4
South Dakota . .. 43 22 21
Wyoming 45 29 16
VIII. Dallas... 2,474 1,075 1,399
New Mexico 117 88 29
Oklahoma 361 126 235
Texas ... 1,996 861 1,135
IX. San Francisco 1,137 600 537
Alaska _ 22 12 10
Arizoiia 24 16 8
California _. 1 735 1 385 350
Hawaii 28 12 16
Idaho . 3 1 2
Montana — 11 4 7
Nevada _ ._ .. 28 22 6
Oregon 20 4 16
Utah 147 105 42
Washington 119 39 80
See footnote at end of table.
194
Appendix table C.—A«m&er 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 1965—Continued
Region and State
X. Nashville_________
Kentucky_____
Tennessee____
Virginia_____
West Virginia.
XI. Atlanta__________
Florida_________
Georgia_________
North Carolina. South Carolina..
Santurce, P.R_____________
Puerto Rico_____
Virgin Islands..
Number of minors illegally employed
Total Under 16 years of age 16-17 years of age in hazardous occupations
1,172 404 768
360 152 208
354 163 191
298 53 245
160 36 124
1,148 464 684
361 192 169
338 147 191
329 53 276
120 72 48
44 32 12
>37 130 7
7 2 5
1 Includes minors illegally employed under the provisions of both the Fair Labor Standards Act and the Public Contracts Act as follows: All regions, 3; California, 2; Puerto Rico, 1.
Appendix table D.—Number of minors found employed in violation of hazardous occupations orders issued under the Fair Labor Standards Act, fiscal year 1965
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, meat packing 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, band saws, 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
7,553
11
4,742
37 342 450
7
1,586
204
20 340 108 192
22
217
163
125
26
1 Represents an unduplicated count of the number of minors employed in violation of one or more hazardous occupations orders.
195
Appendix table 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 1965
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 1 7,076 1,929 3,606 1,514
I Boston 140 24 81 35
Maine - 140 24 81 35
II New York City 0 0 0 0
ITT Chambersburg __ 95 25 44 26
Maryland 20 5 9 6
Pennsylvania 75 20 35 20
IV Birmingham - 1,497 406 766 318
Alabama 1 646 152 336 152
Arkansas 419 131 196 92
Louisiana 1211 64 112 34
Mississippi 221 59 122 40
V Cleveland 113 37 58 18
Michigan. . - 82 24 43 15
Ohio..“. 31 13 15 3
VI Chicago 148 62 66 19
Illinois - 137 24 11 1
Indiana 79 23 43 13
Minnesota 7 6 1 0
Wisconsin 25 9 11 5
VII Kansas City 130 55 58 17
Colorado - - 89 42 36 11
Iowa 2 1 0 1
Missouri.— 38 12 21 5
Nebraska. 1 0 1 0
VIII Dallas - -- 1,341 450 600 287
New Mexico 4 1 1 2
Oklahoma 1 60 13 26 17
Texas 1,277 436 573 268
IX San Fran ci sen 284 95 120 69
California 196 58 83 55
Nevada 3 1 0 2
Oregon Utah 5 80 1 35 4 33 0 12
X Nashville. 77 21 38 18
Kentucky - 5 1 3 1
Tennessee 54 17 26 11
Virginia 18 3 9 6
XI Atlanta _ 3,211 741 1,755 700
Florida i 50 22 20 7
Georgia North Carolina - 1,299 749 320 163 734 426 245 160
South Carolina 11,113 236 575 288
Santnree P R 40 13 20 7
Puerto Rico _ 40 13 20 7
i Includes illegally employed minors for whom no age was reported: All regions, 27; Alabama, 6; Louisiana, 1; Illinois, 1; Oklahoma, 4; Florida, 1; South Carolina, 14.
196
Appendix table F.—Findings in regular safety and health inspections made under the Public Contracts Act, by region and State, fiscal year 1965
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 »3,075 1,577 1,498 1,480 694
I. Boston 356 11 345 10 65
Connecticut2... - .. ... 90 0 90 0 0
Maine ._ 4 4 0 3 0
Massachusetts 2 . 235 0 235 0 65
New Hampshire _ 5 5 0 5 0
Rhode Island2 20 0 20 0 0
Vermont 2 2 0 2 0
II. New York City 567 14 553 9 251
New Jersey2.. _ 191 1 190 1 57
New York2 376 13 363 8 194
III. Chambersburg 241 241 0 231 0
Delaware - ._ 5 5 0 5 0
District of Columbia 10 10 0 6 0
Maryland... 42 42 0 36 0
Pennsylvania 184 184 0 184 0
IV. Birmingham 95 95 0 79 0
Alabama 41 41 0 36 0
Arkansas ... 13 13 0 12 0
Louisiana. . ... 17 17 0 13 0
Mississippi 24 24 0 18 0
V. Cleveland 266 266 0 264 0
Michigan 87 87 0 87 0
Ohio 179 179 0 177 0
VI. Chicago 98 98 0 89 0
Illinois 58 58 0 53 0
Indiana 19 19 0 19 0
Minnesota 9 9 0 8 0
Wisconsin 12 12 0 9 0
VII. Kansas City 149 149~ 144 0
Colorado 20 20 0 19 0
Iowa 23 23 0 22 0
Kansas 41 41 0 40 0
Missouri 56 56 0 54 0
Nebraska 9 9 0 9 0
VIII. Dallas 109 109 0 103 0
New Mexico 4 4 0 4 0
Oklahoma . 31 31 0 28 0
Texas 74 74 0 71 0
IX. San Francisco.. 758 158 600 152 378
Arizona 15 15 0 12 0
California 2 600 0 600 0 378
Hawaii 15 15 0 15 0
Idaho 13 13 0 12 0
Montana 5 5 0 4 0
Oregon 33 33 0 33 0
Utah 23 23 0 22 0
Washington 54 54 0 54 0
X. Nashville.... 195 195 0 179 0
Kentucky 29 29 0 26 0
Tennessee 101 101 0 92 0
Virginia 39 39 0 38 0
West Virginia 26 26 0 23 0
See footnotes at end of table.
197
Appendix table F.—Findings in regular safety and health inspections, made under the Public Contracts Act, by region and State, fiscal year 1965—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
XI. Atlanta 232 232 0 212 0
Florida 54 54 0 49 0
Georgia 98 98 0 88 0
North Carolina 45 45 0 44 0
South Carolina 35 35 0 31 0
Santurce, P.R - 9 9 0 8 0
i In addition, 1,383 inspections were made to determine compliance with corrections required on first inspection.
2 Working arrangement with the State whereby State inspectors make Inspections.
198
Appendix taupe G.—Number of learner certificates in effect on June 30, 1965, classified l)y industry, type of regulation, and type of certificate
i Some plants hold more than one certificate.
199
Appendix table H.—Minimum hourly waye rates established for Puerto Rico as of June 30, 1964, June 30, 1965
Industry and classification Minimum hourly wage rate Effective date of current rate
June 30, 1964 June 30, 1965
Alcoholic beverage and Industrial alcohol: $1.25 Nov. 3, 1963
General classification _ $1.25
New coverage classification 1.00 f 1.15 1 1.25 Oct. 16, 1964 Sept. 3, 1965
Artificial flower, decoration, and party favor: .98 Oct. 16, 1964
General classification • 87H
New coverage classification .85 / 1.15 t 1.25 Do. Sept. 3, 1965
Banking, insurance, and finance: 1.25 Nov. 3, 1963
General classification __ 1.25
New coverage classification 1. 00 f 1.15 t 1.25 Oct. 16, 1964 Sept. 3, 1965
Button, jewelry, and lapidary work: 1.25 Nov. 3, 1963
Gem stone, industrial jewel, and precious jewelry classification.... 1.25
Button and buckle classification . 78J^ .80 Oct. 16, 1964
Hair accessories classification .90 1.00 Do.
Hair ornaments classification .95 1.02 Do.
Metal expansion watch band classification 1.08^ 1.15 Do.
Rosary and native jewelry classification .58^ .60 Do.
Plastic costume jewelry classification .78^ .84 Do.
General classification .83^ .90 Do.
New coverage classification .77 f 1.15 1 1.25 Do. Sept. 3, 1965
Chemical, petroleum, and related products: Agricultural chemicals, fertilizer mixing, hormones, antibiotics, and adrenalin, petroleum refining, and pipeline coating tapes 1.25 1.25 Nov. 3, 1963
classification _
Drags, medicines, bay oil, aromatic alcohol, and toilet preparation Mar. 20, 1965
classification__ .. .96 1.07
Miscellaneous chemical and petroleum products classification 1- W 1.25 Do.
Oil well drilling classification 1.25 1.25 Dec. 5, 1963
Industrial inorganic chemicals classification 1.15 1.25 1.18)4 Mar. 20, 1965 Do.
New coverage classification: Do. Do. Sept. 3,1965
Bay oil and aromatic alcohol classification .95 1. 07
General classification 1.00 1 1.25
Children’s dress and related products: Jan. 24,1965
Hand-embroidery classification .75 .80
Other operations classification .95 1. 01W Do.
New coverage classification 1.00 I L25 Sept. 3,1965
Communications, utilities, and transportation: 1.25 Nov. 3,1963
General classification.. . 1.25
Other workers in motor carrier transport and express classification.. 1.12^ 1.17 Oct. 16,1964
New coverage classifications: Oct. 16,1964 Sept. 3,1965
Telephone switchboard operators classification 1.00 1 1.25
Tugboat and towboat seamen classification 1.00 f 1.15 t 1.25 f 1.05 Oct. 16,1964 Sept. 3,1965 Oct. 16,1964
Other seamen classification 1.00 t 1.15 Sept. 3i 1965
Construction, business service, motion picture, and miscellaneous: 1.25 f 1.15 t 1.25 Dec. 14,1964 Do. Sept. 3,1965
General classification (')
New coverage classification 1.00
Corsets, brassieres, and allied garments: 1.07)4 1.12)4 f 1. 15 t 1.25 Jan. 24,1965 Do. Sept. 3,1965
General classification
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 Nov. 3,1963
and lead-in cable, and portable hand tools) 1.25 1.25
See footnote at end of table.
200
Appendix table H.—Minimum hourly wage rates established for Puerto Rico as of June 30, 1964, and June 30, 1965—Continued
Industry and classification
Minimum hourly wage rate
June 30, June 30, 1964 1965
Effective date of current rate
Electrical, Instrument, and related products—Continued 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)____________________________
Classification C (capacitors, transistors, coils and coil forms, hermetic seals, crystal units, rectifiers, electronic tubes, television picture tubes, television sets, refrigerators, phonograph pickup cartridges, electric baseboard heating units, heating pads and massage pads, Christmas lighting sets, thermometers, drafting instruments, surgical administration sets, and watches).
Classification D (lenses)______________________________________________
Classification E (transformers, wire-wound resistors, magnetic recording tape, television chassis subassemblies, fractional horsepower motors, telephone hand sets, test equipment and switchboards, microphones, glass sealed reed switches, electronic controls for light dimmers, repair assembly and remodeling of telephone and telephone equipment, disposable surgical blades and combination sets, and rods for automobile antennas)_______________
Classification F (all products and activities not specifically included in any other classification of the industry)___________________
New coverage classification____________________________________________
Fabric and leather glove:
Hand-sewing on fabric gloves classification____________________________
Hand-sewing on leather gloves classification___________________________
Other operations on hand-sewn gloves classification____________________
Machine and other operations on machine-sewn gloves classification__________________________________________________________________
New coverage classfication_____________________________________________
Fabricated plastic products:
Dinnerware, sprayer, and vaporizer classification______________________
Phonograph record classification_______________________________________
Wall tile classification_______________________________________________
General classification_________________________________________________
New coverage classification____________________________________________
Food and related products:
Yeast and canned tuna fish classification______________________________
Canning and preserving classification__________________________________
Citron brining and fruit, vegetable, nut, and green coffee packing classification________________________________________________________
Sun-drying of bananas classification___________________________________
General classification_________________________________________________
Biscuit, cracker and bread, rice and lard, and animal feeds old coverage classification_______________________________________________
Biscuit, cracker and bread, rice and lard, and animal feeds new coverage classification_______________________________________________
Ice cream, ices, and similar frozen products old coverage classification________________________________________________________________
Ice cream, ices, and similar frozen products chauffeurs new coverage (subgroup A) classification_______________________________________
Ice cream, ices, and similar frozen products all other workers new coverage (subgroup B) classification__________________________________
Milk and milk products old coverage classification---------------------
Milk and milk products new coverage classification_____________________
Soft drink classification______________________________________________
New coverage classification number 1___________________________________
New coverage classification number 2___________________________________
New coverage classification number 3-----------------------------------
$1.25 $1.25 Nov. 3,1963
1.25 1.25 Mar. 13,1964
1.12^ 1.15 May 20,1965
(') 1.25 Do.
(') 1.18^ Do.
1.00 1.15 Do.
.30 .30 June 2,1964
.50 .52 July 5,1965
.80 .85 Do.
(>) 1.05 Do.
.91 1.05 Do.
1.25 1.25 Nov. 3,1963
1.20 1.25 May 27,1965
1.00 1.05 Do.
.92^ .95 Do.
.80 .85 Do.
1.25 1.25 Nov. 3,1963
1. 00 1.03 Apr. 3,1965
.81 .84 Do.
.81 Do.
(*) 1.06 Do.
(’) 1.25 Do.
f 1.15 Do.
C1) t 1.25 Sept. 3,1965
(>) 1.15 Apr. 3,1965
( 1.15 Do.
(’) I 1.25 Sept. 3,1965
(>) 1.00 Apr. 3,1965
(*) 1.06 Do.
(*) .88 Do.
(>) 1.10 Do.
(9 1.03 Do.
(') .84 Do.
.75 .80 Do.
See footnote at end of table.
201
Appendix table H.—Minimum hourly wage rates established for Puerto Rico as of June 30, 19.64, and June 30, 1965—Continued
Industry and classification Minimum hourly wage rate Effective date
June 30, 1964 June 30, 1965 of current rate
Handkerchief, scarf, and art linen: TJand-sewing classification $0.31 $0.33 Jan. 1,1965
Other operations classification .57 .59 Do.
Ftan d-se.wing on oblong scarfs classification._ .72 .77 Do.
Other operations on oblong scarfs classification__ .88 .93 Do.
Np.w coverage classification .71 f .77 t .93 . 86H Do. Sept. 3,1965 Dec. 10,1964
Hosiery: Ladies’ hosiery classification .82
Other hosiery classification .82 .84 Do.
New coverage classification _ .78 f .87 Do. Sept. 3,1965 July 5,1965
Leather, leather goods, and related products: B el t cl assi fi cation 1.00 1.10
Hide curing classification 1.18^ 1.25 Do.
Leather tanning and finishing classification .82^ .89^ Do.
Sporting and athletic goods classification .83^ .89^ Do.
General classification .78^ .88 Do.
New coverage, classification .74 .88 Do.
Lumber and wood products: Carpet grippers classification 1.25 1.25 Nov. 3,1963
Furniture and miscellaneous wood products classification .87^ .91 Mar. 20,1965 Do.
Kitchen cabinet classification .99
Lnmbpr millwork and balsa wood tovs classification- 1.00 1.03 Do.
Swimming pool equipment classification 1.12J4 1.25 Do.
New coverage classifications: Billiard table classification 1.00 f 1.15 1 1.25 f 1.15 t 1.25 .91 Do. Sept. 3,1965 Mar. 20,1965 Sept. 3,1965 Mar. 20,1965
Table top and kitchen cabinet craft masters and supervisors classification _ _____ 1.00
General classification .86
Men’s and boys’ clothing and related products: Work clothing and separate trousers classification. 1.00 1.04H Jan. 15,1965
Military style headwear classification 1.15 Do.
General classification _ _ _ .93^ .98 Do.
New coverage, classification _ .82^ f .87J^ I .90 1.25 Do. Sept. 3,1965 Nov. 3,1963
Metal, machinery, transportation equipment, and allied products: Fabricated wire products classification _ _ 1.25
Metal spring classification 1.22 1.22 Mar. 13,1964
Slide fastener classification 1.18/^ 1.22 May 20,1965
Wire drawing classification 1.25 1.25 Mar. 13,1964
General classification 1.25 1.25 Nov. 3,1963
New coverage classification __ _ _ 1.00 1.15 May 20,1965
Needlework and fabricated textile products: Knit gloves classification .95 1.01 Jan. 21,1965
Crocheted slippers classification _ .95 .97^ Do.
Hand-crocheting and hand-embroidery of crocheted hats classfi-cation .75 .77^ Do.
Other operations on crocheted hats classification _ 1.02j^ 1.05 Do.
Slacks and related products classification. 1. 02^ 1.11 Do.
General classification 1.03^ 1.11 Do.
New coverage classification 1.00 ( 1.15 t 1.25 1.25 Do. Sept. 3,1965 Apr. 5,1965
Paper, paper products, printing, and publishing: General classification (1)
New coverage classification. _ .78 .81 Do.
Retailing, wholesaling, and warehousing: General classification 1.25 1.25 Nov. 3,1963
"Retailing new coverage classification (') 1.00 May 16,1965
Other new coverage classification 1.00 f 1.15 1 1.25 .98 Do. Sept. 3,1965 Mar. 14,1965
Rubber products: Rubber bucket classification .93^
Rubber footwear classification. __ 1.00 1.03 Do.
Tire recapping classification _ _ _ _ _ 1.15 1.25 Do.
Miscellaneous rubber products classification 1.25 1.25 Nov. 3,1963
New coverage classification 1.00 f 1.00 1 1.10 Mar. 18,1963 Sept. 3.1965
See footnote at end of table.
202
Appendix table H.—Minimum hourly wage rates established for Puerto Rico as of June 30, 1964, and June 30, 1965—Continued
Industry and classification Minimum hourly wage rate Effective date of current rate
June 30, 1964 June 30, 1965
Shoe and related products-- - - $0.823$ $0.90 Feb. 27,1965
Stone, clay glass, cement, and related products:
Abrasive products, cement, dry cement mixes, glass and glass
products, hot asphaltic plant mix, ready-mixed concrete, concrete block and tile, concrete pipe, precast concrete construction components, structural clay products, and ceramic floor and wall Nov. 3,1963 Do.
tile classification _ _ 1.25 1.25
Artificial teeth classification __ __ _ _ 1.25 1.25
Asbestos cement products, high purity silicon, and crushed stone,
sand, and gravel classification.— 1.25 1.25 Dec. 15,1963 Apr. 5,1965 Do.
Art pottery classification .72 .75
Mica classification _ — __ . 923$ .96
Vitreous and semivitreous china food utensils classification -973^ 1.123$ 1.01 Do.
General classification . _ 1.123$ Nov. 3,1963
New coverage classifications:
Terrazzo and marble tile classification. 1.00 f 1.15 I 1.20 Apr. 5,1965 Sept. 3,1965
General classification _ _ _ .75 .75 June 3,1963
Straw, hair, and related products:
Artists’ brush and native handicraft products classification. . .65 .74 Dec. 10,1964
Hair and bristles processing and other straw, hair, and related
products classification _ __ . .71 .75 Do.
Hair piece and doll wig classification.. _ . _ _ . .873$ .70 . 873$ Nov. 3,1963 Dec. 10,1964 Sept. 3,1965
New coverage classification f .80 I .90
Sugar manufacturing: Dec. 11,1964 Do. Sept. 3,1965
General classification 1.173$ 1.00 1.193$ f 1.15 I 1.193$
New coverage classification . .
Sweater and knit swimwear:
General classification ._ _ . 1.17 1.17 Nov. 3,1963 Jan. 1,1965 Sept. 3,1965
New coverage classification . 1.00 f 1.10 t 1.17
Textile and textile products:
Bag cleaning and repairing classification _ .75 .85 Dec. 10,1964
Broadwoven fabrics classification .85 .95 Do.
Hooked rug classification:
Multiple-needle power-driven machine operations . .95 1.02 Do.
Other operations.. . _ ._ .723$ .78 Do.
Mattress and pillow classification.. 1.25 1.25 Nov. 3,1963
Yarn classification .85 .95 Dec. 10,1964
General classification . . . .85 .923$ Do.
New coverage classifications:
Mattresses and bedsprings classification:
Craft masters and supervisors _ _ . .. . 1.00 ( 1.15 t 1.25 Do. Sept. 3,1965
Skilled workers - - 1.00 / 1.15 t 1.25 Dec. 10,1964 Sept. 3,1965
General classification .85 ( .95 t 1.05 Dec. 10,1964 Sept. 3,1965
Tobacco:
Filler hand stemming classification .50 .51 Aug. 1,1965
Filler tobacco processing classification ... .48 .50 Do.
Machine threshing, other operations classifiction... .85 .90 Do.
Wrapper type tobacco processing classification . . .88 .93 Do.
General classification _ _ 1.06 1.13 Do.
New coverage classification .70 f 1.00 1 1.13 Do. Sept. 3,1965
Women’s and children’s underwear and women’s blouse:
Hand-sewing classification .78 .85 Jan. 1,1965
Other operations classification .953$ 1.00 Do.
New coverage classification .75 f .85 t 1.00 Do. Sept. 3,1965
1 Scope of the classification(s) changed by the committee in fiscal year 1965.
203
Appendix table I.—Minimum hourly wage rates established for the Virgin Islands as of June 30,1965
Industry and classification Minimum hourly wage rate Effective date
Air transportation: General classification _ - - - $1.25 Nov. 3, 1963
New coverage classification _ __ _ _ _ __ 1.15 Sept. 3, 1964
Alcoholic beverage and industrial alcohol .90 Nov. 16,1963
Banking, real estate, accounting, and insurance: General classification _ _ __ _ _ - 1.25 Nov. 3, 1963
New coverage classification- - - - 1.15 Sept. 3, 1964
Bay rum and other toilet preparations: General classification _ _ _ _ _ 1.15 Nov. 16, 1963
New coverage classification _ _ __ __ _ __ 1.15 Sept. 3, 1964
Communications and public utilities: General classification _ _ _ _ _ ___ __ 1.25 Nov. 16,1963
New coverage classification _ __ __ _ __ - - - 1.15 Sept. 3, 1964
Distribution, trucking, and construction: General classification _ _ __ - 1.15 Nov. 16, 1963
Retailing classification _ - - - - - 1.05 Sept. 3, 1964
General new coverage classification. ____ ___ ___ 1.15 Do.
Jewelry, pen, thermometer, industrial belting, and miscellaneous metal products: Clock, watch, and watch band classification _ 1.15 Nov. 16,1963
General classification. _ 1.00 Do.
Clock, watch, and watch band new coverage classification 1.15 Sept. 3, 1964
General new coverage classification __ _ _ ____ 1.00 Nov. 16,1963
Shipping, marine transportation, and ship and boat building: General classification _ _ - - 1.25 Nov. 3, 1963
Seamen classification _ ... - - - 1.00 Nov. 16,1961
General new coverage classification _ _ ___ 1.15 Sept. 3, 1964
Miscellaneous: Fruit and vegetable packing, farm products assembling, and meatpacking classification _____ __ __ _ _ .75 Nov. 3, 1963
Stone crushing and quarrying and ready-mixed concrete classification Textile classification _ _ __ _ - - - 1.15 1.00 Nov. 16,1963 Do.
General classification - - - • 82W Do.
New coverage classifications: Fruit and vegetable packing, farm products assembling, and meatpack-ing classification _ __ _ ___ _ .75 Do.
Stone crushing and quarrying and ready-mixed concrete classification.. Textile classification __ _ _ _ ___ _ 1.15 1.00 Sept. 3, 1964 Nov. 16,1963
General classification .82^ Do.
Appendix table J.—Minimum hourly wage rates established for American Samoa as of June 30,1965
Industry and classification
Minimum Effective
hourly date wage rate
Fish canning and processing and can manufacturing industry_________________
Shipping and transportation industry:
Classification A (seafaring)____________________________________________
Classification B (other activities)-------------------------------------
Petroleum marketing industry-----------------------------------------------
Construction industry______________________________________________________
Miscellaneous industries___________________________________________________
$1.00 Sept. 9,1963
.55 Do.
1.00 Do.
1.00 Do.
.70 Sept. 14,1961
.80 Sept. 9,1963
204
Appendix table K.—Summary of minimum wage determinations applicable under the Public Contracts Act,1 June 30, 1965
Industry Minimum hourly wage rate Effective date2 Employment at less than determined rates3
All industries and localities except those in- $1.25 Mar. 20,1964 w.
dicated below.
Battery:
Lead-acid storage battery branch __ __ 1.80 Dec. 11,1963 do
Dry primary battery branch __ _ 1.41
Other battery branch. _ _ _ __ 1.41 do
Bituminous coalfincluding lignite): Auxiliary workers $1.25,
Districts: efiective Mar. 20,1964.
1—Eastern Pennsylvania 2. 745 Oct. 20,1958 do
2—Western Pennsylvania ______ 2.745
3—Northern West Virginia . _ _ 2.745 . ...do
4—Ohio 2.745 _ ..do _
5—Michigan 1.25 Mar. 20,1964 w.
6—Panhandle _. 2.745 Oct. 20,1958 do __
7—Southern No. 1 _ 2.745
8—Southern No. 2 2.745 _ ...do
9—West Kentucky __ _ _ 2.59 . ...do
10—Illinois _ _ _ _ 2.745 do
11—Indiana _ . __ . 2.78 do _
12—Iowa.... ... 1.40 Nov. 25,1955 Oct. 20,1958 _ ..do __
13—Southeastern 2.515
14—Arkansas-Oklahoma 2.59
15—Southwestern . 2.59 - -do
16—Northern Colorado ______ 2.796 do
17—Southern Colorado 2.796 do
18—New Mexico _ 2. 796 __ -do
19—Wyoming . .. 2.82 do
20—Utah 2.82 .do _
21—North Dakota-South Dakota 2.226 Nov. 25,1955 Oct. 20,1958 __ ..do
22—Montana 2.846
23—Washington .. 2.735
Chemical and related products: w.
Industrial and refined basic chemical pro- 1.25 Mar. 20,1964
ducts branch. Bone black, carbon black, and lamp black 1.40 Jan. 23,1951 Beginners $1.35 for not
branch. more than 320 hours.
Conveyors and conveying equipment 1.70 Aug. 14,1963
Drugs and medicine 1.45 Feb. 21,1962 Apr. 12,1963
Electric lamp . _ 1.65
Electron tubes and related products:
Solid-state semiconductor devices branch 1.35 Jan. 7,1961
Electron tubes branch _ 1.42 do
Electronic equipment. 1.52 May 4,1963
Engines and turbines:
Steam engines, turbines, and turbine gener- 1.71 Oct. 30,1963
ator sets branch. Internal combustion engines branch 1.69 do
Evaporated milk 1.68 Jan. 15,1960 Probationary workers $1.63
for not more than 160 hours.
Flour and related products 1.30 Mar. 5,1959
Machine tools:8
Emplovees engaged in the occupations of 1.65 May 23,1963
blueprint machine operator or draftsman. Employees engaged in other occupations 1.80 do
See footnotes at end of table.
205
Appendix table K.—Summary of minimum wage determinations applicable under the Public Contracts Act,1 June 30,1965—Continued
Industry Minimum hourly wage rate Effective date2 Employment at less than determined rates3
Manifold business forms _ $1.39 1.43 1.42 1.80 1.55 1.50 1.30 1.53 1.37 1.25 1.75 1.54 1.55 1.64 1.52 1.65 1.35 1.50 1.50 1. 77 Sept. 16,1961 June 10,1961 Dec. 4,1961 do Mar. 12,1962 July 24,1958 Feb. 3,1961 do _ _ .do . Probationary workers $1.40 for not more than 480 hours. Beginners or probationary workers for not more than 240 hours at 50 less than the applicable minimum. Do. Do. (<). Beginners or probationary workers $1.67 for not more than 160 hours.
Metal business furniture and storage equipment.. 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). 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). Office, computing, and accounting machines Paint varnish and related products. __ __
Paper and paperboard containers and packaging products: Nontextile bags branch
Corrugated and solid fiber boxes branch
Wrapping products branch _ - - Mar. 20,1964 Sept. 16,1961 do
Paper and pulp: Primary paper and pulp branch
Converted sanitary paper products branch... Building paper and building board branch... Photographic and blueprinting equipment and supplies. do
do June 10,1961 June 11,1963 June 28,1963 -do
Scientific, industrial, and laboratory instruments: Electrical indicating instruments and service test equipment.
Soap and related products _ _ - - -- Dee. 8,1958 June 3,1960
Tires an d related products _ _ _
> 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.
a 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 As a result of pending litigation concerning the legality of this determination, its effectiveness has been postponed to permit further proceedings by the Secretary and the issuance of another determination which, under the court’s holding, may be given retroactive effect. The postponement, however, is not general but applies only to those affected persons who file with the court a written undertaking binding themselves to the terms of the court’s order of July 30,1965, entered in the case (Barber- Colman Company et al v. W Willard Wirtz, Secretary of Labor, U.S.D.C.D.C., Civil Action No. 1557-63). One term of the July 30 order is that all persons who have or shall have entered into any contracts subject to the act on or after May 23 1963, shall, for the period specified in the Secretary’s final determination, pay to covered employees any difference between the wages they actually received for their work and the minimum wages established by such final determination, unless, or except to the extent that, such final determination and its effective data may be set aside or modified.
206
Appendix table L.—Number and value of unclassified contracts subject to the Public Contracts Act, by fiscal year, 1937-65
Fiscal year Number of contracts 1 Value (in thousands)1 2 Fiscal year Number of contracts1 Value (in thousands)2
Total, all years... . 1,544,014 $326,426,284 1951 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 94,797 $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 19,067,743
1937 (9 months) ... 1952
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 22,349 177,789 294,953 528,393 799,733 5,085,694 15,867,769 30,935,632 30,216,662 28,798,335 5,224,234 1,656,595 2,360,105 3,606,280 2,784,325
1953.
1938 1954
1939 1955
1940 1956
1941 1957
1942 1958
1943 1959
1944 1960
1945 1961.
1946 1962
1947 1963
1948 1964
1949 1965.
1950
1 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 19651
Age Present or last grade attended Below normal grade for age
Total all grades2 Never attended school 1 2 3 4 5 6 7 8 9 10 11 Number Percent of total in age interval
Total,
all
years 6,934 106 429 582 750 935 998 1,047 937 612 385 145 8 2,972 43
5 years 6 2 4 0 0
6 years 170 45 109 16 0 0
7 years 302 15 133 129 22 3 15 5
8 years 434 7 91 137 170 24 5 98 23
9 years 572 7 52 113 159 203 37 1 172 30
10 years 721 8 19 89 137 199 217 49 2 1 253 35
11 years 844 3 9 41 104 180 226 238 38 5 337 40
12 years 1, 011 4 5 22 80 134 188 283 260 35 433 43
13 years 974 7 2 20 38 85 141 189 262 199 30 1 482 49
14 years 1,029 4 2 8 26 60 108 174 210 211 195 31 592 58
15 years 871 4 3 7 14 47 76 113 165 161 160 113 8 590 68
1142 illegally employed minors were omitted for the following reasons: (1) 98 for whom no school information was available; (2) 27 for whom age was not reported; (3) 17 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 violation of the child labor provisions of the Fair Labor Standards Act, by age and present or last school grade attended, fiscal year 19651
Present or last grade attended
Below normal grade for age
Age
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________
Total all gradesi 2 Never attended school 1 2 3 4 5 6 7 8 9 10 11
1,661 55 165 203 223 272 250 216 173 69 28 7 0
2 1 1
45 23 18 4
82 8 56 16 2
112 4 50 41 15 2
126 4 25 45 27 24 1
153 3 9 46 48 30 16 1
181 0 4 25 43 56 32 19 1 1
225 2 0 10 45 60 50 36 21 1
219 4 1 8 18 39 61 42 1 31 12 3
268 3 0 5 18 34 51 70 56 22 9
248 3 1 3 7 27 39 48 64 33 16 7
Number
1,172
0 0
8
54
74
106
128
167
173
237
225
Percent of total in age interval
71
0
0
10
48
59
69
71
74
79
88
91
i 99 illegally employed minors were omitted for the following reasons: (1) 85 for whom no school information was available; (2) 5 for whom age was not reported; (3) 9 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.
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 been 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
The WHPC Divisions found 18,605 1 young workers employed contrary to the child labor provisions of the FLSA and the PCA in nonagricultural establishments as well as in agriculture. More than half (11,529) of these minors worked illegally in nonagricultural establishments. There were 7,076 minors under 16 years of age illegally employed in agriculture during school hours. More often than not employers were able to change either the occupation of the currently employed minor, his hours of work, or other conditions of work in order to have his employment meet the child labor standards provided in the acts.
In nonagricultural employment, child labor violations were found in every State, the District of Columbia, Puerto Rico, and the Virgin Islands. Among the 11,529 who were illegally employed, 4,865 or 42 percent were under 16 years
1 Included in this total are 92 minors employed contrary to the child labor provisions of the PCA; 89 were employed in violation of the PCA only and 3 in violation of both acts.
792-672—61
15
209
of age employed in violation of the FLSA; 6,575 or 57 percent were 16- and 17-year-old youths employed contrary to hazardous occupations orders; and 89 were employed in violation of the minimum age provisions of the PC A only. (See appendix table C.)
Employment of Minors Under 16
The employment of children under 14 years of age is prohibited. However, a surprising number of children under 14 years of age were found employed. A sister and brother, ages 8 and 9 respectively, were found employed in a factory pressing curtains. They had worked 6 months at the time the investigation was made.
Twenty children, 18 of whom were under 14 years of age, were found employed in an establishment making fishing tackle. Periods of employment ranged from 2 years to 6 months. One child was 4 years old when he started. Ages of other children were 6, 8, 9, 10, 11, 12, and 13. In a rendering service, a 9-year-old boy was found riding on the truck and helping pick up dead animals.
In a laundry, eight children between the ages of 12 and 16 were found illegally employed.
Children as young as 14 were found working in occupations such as cleaning and operating nonautomatic feed platen printing presses—an occupation so hazardous that an 18-year minimum age applies.
A number of establishments were found employing 14- and 15-year-old boys as drivers of trucks or as helpers on trucks. Such work is subject to the 18-year minimum age under a hazardous occupations order. A wrecking company had employed 11 boys, 14 and 15 years of age, to clean and stack bricks. No minor under 18 may be employed in cleanup and salvage work in connection with wrecking and demolition operations.
It was not uncommon to find 14- and 15-year-old minors working more than 3 hours daily on a schoolday and more than 18 hours a week when school was in session, contrary to hours standards provided in Child Labor Regulation No. 3. There were also many instances of employment beyond the 7 p.m. deadline set for minors of these ages. In a vegetable packing shed, three minors, 15 years old, had worked as much 76 hours weekly during a school week and anywhere from 814 to 15 hours daily. One boy worked until 3 a.m.
Long hours of work interfere with a young person’s opportunities to do his schoolwork and frequently affect his health. Also, young workers are not prepared to cope with the potential dangers of prohibited occupations. A 12-year-old boy was driving a tractor dragging logs out of a swamp; the tractor tipped over and crushed him to death. Child labor standards were not designed to prevent young people from working, but rather to insure 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 while
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working. The child labor provisions do not apply to children employed in agriculture outside school hours.
Agricultural child labor investigations were made in 40 States and Puerto Rico. Crops grown on farms where investigations were made included apples, asparagus, beans, cabbages, celery, cotton, cucumbers, coffee, lettuce, onions, peaches, plums, prunes, potatoes, strawberries, tomatoes, a variety of fruits, nuts, and some flowers. Almost 82 percent of the minors found illegally employed during school hours worked in cotton fields.
During the 1965 fiscal year, 7,076 minors under 16 years of age were found illegally employed during school hours on 2,300 of the 3,599 farms that were investigated. Of these minors, 5,316 were local children and 1,760 were migrants. Over 21 percent (1,514) of the minors illegally employed were 9 years of age or younger. More than half (3,606) of the minors were 10 to 13 years of age, while 27 percent (1,929) were 14 and 15. (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” for them.
The educational handicap these child farmworkers suffer is reflected in information obtained from them regarding the last grade attended at school. Of the 6,934 children who furnished this information, 43 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, 58 percent of the children employed in violation of the act were enrolled in grades below the normal for their ages, and at 15 years of age the percentage was 68. (See appendix table M.)
Of the migrants found illegally employed, information on last grade completed was obtained from 1,661. Fifty-five of these children had never attended school, and 71 percent were in grades below the normal. At 14 years of age, the percentage increased to 88, and at 15 years, 91 percent were behind in scholastic attainment. (See appendix table N.)
Low educational achievement of children working in agriculture may be related to deficiencies in school attendance laws, crop vacations, inadequate school facilities, attitudes of the parents, and in addition, language barriers for migrant children.
While the trend towards mechanization in agriculture may eventually have an impact on the employment of children in harvesting crops, it has not yet done so materially. There is one exception—the potato pickers have indeed reduced the number of children who harvest potatoes.
Almost without exception, school officials have shown increased interest in keeping children in school. A number have indicated improved attendance as a result of the Divisions’ investigation program. While there are still areas where crop vacations are the rule, the practice has decreased considerably. One State has increased to 10 the schools for migrants which started out as a pilot program. These schools operate generally from November through about the middle of May and from October through April on an 814-hour schoolday. They cover the same subjects as do the regular schools in a year.
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Youngsters working on farms are subject to all sorts of accidents, some of which are fatal or disabling. National statistics on accidents to minors employed in agriculture are not available. However, 27 States cooperating with the Department of Labor in reporting accidents indicated that for the calendar year 1964 there were 1,400 injuries to minors under 18 employed in agriculture. One State reported 983 disabling work injuries and 18 fatalities among minors ranging in age from 14 through 19 years working in agriculture.
Farm tractors and machinery cause many accidents. Newspapers frequently carry tragic stories like that of the boy in a Southern State killed in a farm tractor accident, and the 13-year-old girl in an Eastern State who died as a result of falling off a tractor. A 12-year-old boy fell off a potato picker which ran over him. He died in a hospital 4 hours after the accident. A 12-year-old boy in a Southern State died of suffocation in a trailer filled with loose cotton.
Minors Employed in Hazardous Occupations
The FLSA establishes an 18-year minimum age for employment in occupations declared hazardous by the Secretary of Labor.
During the 1965 fiscal year, 7,553 minors under 18 were found employed in occupations covered by one or more of the 17 hazardous occupations orders. Approximately 63 percent (4,742) were employed in violation of order No. 2 as motor-vehicle drivers or helpers. A total of 1,586 minors under 18 were illegally employed in the operation of elevators and other power-driven hoisting machines coverd by Hazardous Occupations Order No. 7; there were 342 illegally employed in logging and sawmilling, covered by Hazardous Occupations Order No. 4; and 450 were illegally employed in the operation of power-driven woodworking machinery covered by Hazardous Occupations Order No. 5. These four hazardous occupations orders accounted for over 94 percent of the violations found in hazardous occupations. (See appendix table D.)
Minors who were employed contrary to the 18-year minimum age for employment in hazardous occupations included young boys ranging from 8 to 17 years of age working as truck drivers’ helpers in construction companies and lumber yards (order No. 2). Boys 13 and 14 were found in and around killing floors of a slaughterhouse and actually helping in slaughtering livestock (order No. 10), while boys of 13, 14, and 16 were operating drill presses and hand saws in a table manufacturing plant (Nos. 5 and 14).
Accidents in which young people are seriously injured or killed point up the unremitting need for the continuance of an effective enforcement program. Reports of injuries to minors under 18 years of age, sent to the U.S. Department of Labor from 27 States, indicate during 1964 a total of 12,188 injuries to employed minors under 18 years of age. Investigations made by the Divisions also revealed a number of serious accidents to youths who were employed contrary to hazardous occupations orders.
A 17-year-old minor was fatally injured at an oil refinery where he was doing roofing work on a large oil tank. He had fallen 40 feet to the ground (order No. 16).
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A 16-year-old minor was killed when he fell from the TV tower where he was applying a plastic shield (order No. 16).
A 17-year-old minor who delivered machine design prints suffered severe head injuries when the truck he was driving hit a telephone pole. The cause of the accident was unknown, but the police reported that driving conditions were favorable (order No. 2).
A 17-year-old minor lost his middle finger while working on a power-driven circular saw in a woodworking establishment (order No. 5).
A 17-year-old minor had to have his index finger amputated after catching it in a patty-forming machine located in the grocery store where he was employed (order No. 10).
A 17-year-old minor employed in a supermarket mangled his hand so badly while operating a meat grinding machine that amputation of the hand was required (order No. 10). The day before the accident occurred, the owner had promised that he would not use minors under 18 on this machine.
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. Many, however, avail themselves of this protection.
State age and employment certificates are accepted as proof of age under the FLSA and the PCA in 45 States, the District of Columbia, and Puerto Rico. During fiscal year 1965, over 1 million 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 these States do not have a certification program. Special arrangements for accepting documentary proof of age are in effect in Alaska. A total of 19,744 Federal certificates were issued in fiscal year 1965; this was 3,616 more than in the previous fiscal year. Over 62 percent (12,273) were issued for the employment of 16- and 17-year-old youths. Less than 2 percent (263) were issued to 14- and 15-year-old minors. About 36 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
Press releases, radio-TV spot announcements, and scripts were prepared for issuance through the regional offices in an effort to keep children in school and out of the fields during the spring and fall planting and harvesting seasons. A release was similarly issued before the Christmas holidays to inform employers, parents and children of the types of jobs permitted under the law.
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The Divisions’ personnel throughout the field spoke before business, civic, and farm organizations on the child labor provisions of the act and cooperated with schools and local governments in providing information and literature on the act’s requirements.
As part of a nationwide program to provide lawful summer jobs for youth, the regional offices alerted the public to the child labor standards contained in the act.
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WOMEN’S BUREAU
The outstanding accomplishments of 1964 which brought notable improvements in the status of American women and which centered around Federal programs and legislation were reflected in equally significant gains at the State and community level in 1965. The Women’s Bureau made major contributions toward achievement of these gains.
STATUS OF WOMEN
Much that was accomplished in the States stemmed from the activities of Governors’ commissions on the status of women which were established in 44 States by the end of July 1965.
The Governors’ commissions drew heavily upon the five regional offices of the Women’s Bureau for assistance in organizing and setting up procedures and for supportive action as the commissions explored areas such as minimum wages, equal pay, day care centers, educational facilities, counseling and guidance, civil and political status, and aspects of the antipoverty program. As the commissions gave evidence of permanency, the regional directors helped them establish working relationships with other Federal, State, and local agencies and organizations with mutual concerns. The assistance of the regional directors also was requested in preparing commission progress reports and recommendations.
Public interest in America’s womanpower was stimulated, also, by the Interdepartmental Committee and Citizens’ Advisory Council on the Status of Women, for which the Women’s Bureau provides research services and technical assistance and furnishes the secretariat. The Committee and the Council serve as a clearinghouse for the exchange of information and ideas among the State commissions, women’s groups, government agencies, and others interested in the status of women. Summaries of the reports of the State commissions were prepared and distributed, and an informational bulletin, “Progress of American Women,” was prepared for issuance in July 1965. Plans were completed for a second annual Conference of Governor’s Commissions on the Status of Women scheduled for July 1965 in Washington, D.C.
The first annual report to the President by the Committee and the Council, made October 10, 1964, highlighted advances for women in what was characterized as the best year for women since the passage of the 19th amendment. It reviewed progress made in implementing the recommendations of the President’s Commission on the Status of Women, with particular emphasis on the President’s “Talent Search for Womanpower” and measures to improve the status of the disadvantaged.
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The Interdepartmental Committee approved a system of reporting Federal employment of women, proposed by the Civil Service Commission, to provide data for assessing progress in women’s employment in the Federal service.
During the fiscal year, the Director of the Office of Economic Opportunity and the Chairman of the Equal Employment Opportunity Commission were added to the membership of the Interdepartmental Committee, and the membership of the Council was increased to 20. The change was brought about by amendments on May 6, 1965, to Executive Order 11126 setting up the two bodies.
The Secretary of Labor is Chairman of the Committee, the Assistant Secretary for Labor Standards is Vice Chairman, and the Director of the Women’s Bureau is Executive Vice Chairman.
FIELD SERVICES
The Bureau’s five regional offices were focal points for much of the service provided officials, organizations, and individuals in the field, as well as the Governors’ commissions.
The Bureau’s Director, the regional directors, and other members of the staff participated with State and local groups in approximately 600 conferences, conventions, and other meetings—more than double the number in the previous year. The Bureau cosponsored 11 regional conferences with various State agencies, universities, and other groups. These meetings covered the problems of women workers, the changing role of women in American society, and the economic, social, and legal status of women. Included was an experimental conference, cosponsored with Rutgers University, on “Unions and the Chang-ng Status of Women Workers.” All of the conferences were attended by a broad cross section of representatives of labor, management, education, professional organizations, citizen groups, and State and local governments.
The Bureau provided technical services and supporting factual material needed by Governors’ commissions, women’s voluntary organizations, and State labor departments for educational programs directed toward enactment and improvement of minimum wage and equal pay laws and other legislation of special interest to women.
Expanded field activities called for additional informational services, and a total of 87,434 Women’s Bureau publications were distributed through the 5 regional offices in fiscal 1965, more than 4 times the number distributed regionally the previous year.
LEGISLATIVE GAINS
Enactment of minimum wage and equal pay laws at the 1965 State legislative sessions demonstrated the effectiveness of cooperation between the Women’s Bureau and organizations and agencies in the field to secure sound labor standards.
Minimum wage laws were enacted for the first time in Delaware, Indiana, and Maryland; Oklahoma amended a wage board law for females to establish a
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statutory rate applicable to men and women; men were brought under coverage of existing laws for women in North Dakota and Nevada; and the statutory rate was increased in Maine, Nevada, New Mexico, North Carolina, Vermont, and Wyoming. Technical assistance and advisory services were furnished in six other States and the District of Columbia.
Equal pay laws were enacted for the first time in Oklahoma, North Dakota, and West Virginia; existing laws were strengthened in California, Maine, New York, and Rhode Island. Technical advisory services and materials were provided concerned groups in nine additional States.
In addition, fair employment practices laws which included prohibitions against discrimination based on sex were enacted for the first time in Arizona, Maryland, Nebraska, Utah, and Wyoming, and existing FEP laws in Massachusetts, Missouri, and New York were amended to include the prohibition.
The Bureau prepared informational materials for a kit, “Minimum Wage, A Weapon Against Poverty,” for the use of State groups, and at the request of the American Association of University Women prepared a pamphlet, “State Minimum Wage Legislation—A Major Weapon in Poverty,” for the association’s national convention. Revision of the Bureau’s Bulletin 267, “State Minimum-Wage Laws and Orders,” part II, was completed, and revision of part I was begun.
The Bureau cooperated with the advisory committee of State Administrators and the Solicitor’s office in revising the Department’s draft equal pay bill. This was made available, together with an explanatory memorandum, to State labor departments, Governors’ commissions on the status of women, and interested groups and individuals prior to the 1965 legislative sessions. Basic publications on equal pay were revised and brought up to date, and a kit of informational material, “The Fairest Way is Equal Pay,” was distributed.
With the enactment of the Civil Rights Act of 1964, the Bureau was called upon to analyze the potential contributions of title VII to the employment of women. The title includes prohibition of discrimination in all phases of employment on the basis of sex. The Bureau, in cooperation with the Solicitor’s Office, helped formulate Department policy in advising the Equal Employment Opportunity Commission concerning implementation of the law. A leaflet, “Laws on Sex Discrimination in Employment,” analyzing coverage of unfair labor practices under title VII and State FEP laws was prepared.
A leaflet, “Know Your Rights,” which was requested by the Committee on Civil and Political Rights of the President’s Commission on the Status of Women and coauthored by a committee member, was completed; the technical information for the leaflet was supplied by the Bureau. Revision of 8 State separates in the Bulletin 157 series, “The Legal Status of Women in the United States,” was completed.
ECONOMIC STATUS AND OPPORTUNITIES
A marked increase in requests for information on women’s changing employment patterns and characteristics and on their employment outlook reflected a
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growth in the woman labor force of 712,000 during the year to a total of 27.3 million women workers.
Several studies were prepared in answer to this demand. The “Handbook on Women Workers” was revised and expanded for the 1965 edition. It covers details of women’s labor force participation, occupations, income and earnings, and education and training as well as legislation affecting them. The Bureau issued a study, “Trends in the Educational Attainment of Women,” and several fact sheets: “Background Facts on Women Workers in the United States,” “Current Data on Non white Women Workers,” and “Changing Pattern of Women’s Lives.”
Information on job opportunities for women was made available in a new bulletin, “Clerical Occupations for Women—Today and Tomorrow,” and in a pamphlet, “Future Jobs for High School Girls,” which was revised for publication in September 1965. Preliminary work was begun on two other publications: “Women Workers—Their Special Training Needs” and “Employment Opportunities for Women in Sub-Professional Occupations.”
Recognizing the need for more adequate counseling for women and girls, the Bureau, along with the Office of Education of the Department of Health, Education, and Welfare, cosponsored the Midwest Regional Pilot Conference on New Approaches to Counseling Girls in the 1960’s. The 114 participants from 7 Midwest States included guidance and counseling personnel from private and public agencies and organizations. Approximately 2,200 kits for trainees at 40 colleges were provided for project CAUSE (Counselor-Advisor University Summer Education).
A consultation on household workers sponsored by the Bureau for representatives of government and nongovernment organizations led to formation of the National Committee on Household Employment by major religious, civic, welfare, and service groups. The Bureau cooperates with the committee in promoting the expansion of training programs for household workers, including development of new and more specialized skills, and in encouraging the development and adoption of improved standards for household work, and the utilization of various placement techniques.
The Bureau, in cooperation with the Children’s Bureau, cosponsored a Bureau of the Census survey of child care arrangements of working mothers. A joint preliminary report was issued for the May 1965 National Conference on Day Care Services in which the Women’s Bureau participated.
The Bureau was represented on or cooperated with numerous intraagency and interdepartmental committees, including those concerned with setting up the Job Corps centers for women, the Neighborhood Youth Corps, and the youth opportunity campaign. Also included were committees of the National Manpower Advisory Committee and the Interdepartmental Committee and National Committee on Children and Youth, for which the Bureau prepared the Department’s consolidated report.
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INTERNATIONAL PROGRAMS AND SERVICES
The Director of the Bureau was a member of the U.S. Delegation to the 49th session of the International Labor Organization in Geneva. She represented the United States on the committee which met in final discussion of the recommendation on the “Employment of Women with Family Responsibilities,” for which the Bureau prepared the U.S. position paper. She spoke at the plenary session in support of the committee report and the recommendation which was adopted. In preparation for the 49th session, the Bureau prepared U.S. Government comments on the ILO draft recommendations and resolutions adopted at the 48th session.
The Bureau also prepared comments on points under discussion by the ILO Tripartite Committee on the clothing industry and on points under discussion by the ILO Tripartite Committee for the Hotel and Restaurant Occupations. For the Office of Economic Cooperation and Development, technical services included preparation of the U.S. Government position papers for the OECD meeting on “Women in a Changing World” and for a discussion on “Hours and Standards for Women Workers” by a special OECD committee.
At the suggestion of the Women’s Bureau, a Committee on Women, composed of a Government Committee and a Citizens’ Committee, was established to participate with 29 other committees in a White House Conference, from November 29 to December 1, 1965, in connection with International Cooperation Year. The Bureau Director was named chairman of the Government Committee.
The Chief of the International Division, at the request of the National Council of Women’s Organizations of Malaysia, visited that country and assisted in preparing for a national seminar on women’s employment and in exploring the need for a women’s bureau similar to that in the U.S. Department of Labor. The seminar recommended that such a bureau be created and that an advisory board on women’s status be organized to serve until the Government could establish a permanent bureau.
While in the Far East, the Division Chief also held conferences with Government officials and women leaders in Bangkok, Manila, and Tokyo. A National Commission on the Status of Women has since been established in Japan.
As part of the Labor Department’s orientation program, the role of women in the economy of the United States was interpreted to 91 leaders, specialists, and trade unionists from 24 countries. In addition, overall programs were planned for foreign leaders and specialists who were particularly interested in problems of mutual concern to women throughout the world.
The Chief of the Legislation and Standards Division served as a member of the U.S. Delegation at the 18th session of the United Nations Commission on the Status of Women, in Tehran, March 1-20, 1965. Throughout the year, she also served as adviser to the U.S. Representative on the same U.N. Commission and aided in the preparation of supporting technical materials for various meetings concerning the status of women.
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INFORMING THE PUBLIC
In keeping the public informed as to developments relating to women’s employment and their legal, economic, and political status, the Bureau furnished information to the press, radio, and TV. In addition, magazine articles were prepared for 9 periodicals, and a total of 251,700 Women’s Bureau publications were distributed.
The Assistant Secretary for Labor Standards, the Director of the Bureau, and other staff members made more than 200 speeches to women’s organizations, educational institutions, conferences, conventions, labor groups, church organizations, and social service agencies throughout the country.
U.S. GOVERNMENT PRINTING OFFICE: 1966
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SAN DIEGO PUBUC UBRARY
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