[United States Department of Labor Sixty-Third Annual Report, Fiscal Year 1975] [From the U.S. Government Publishing Office, www.gpo.gov] United States Department of Labor Sixty-Third Annual Report Fiscal Year 1975 United States Department of Labor Sixty-Third Annual Report Fiscal Year 1975 John T. Dunlop, Secretary 3 1336 05750 3568 United States Department of Labor Secretary of Labor Executive Assistant and Counselor to the Secretary Special Assistant to the Secretary Public Affairs Director Director, Office of Information, Publications, and Reports Under Secretary Executive Assistant to the Under Secretary Chairman, Employees’ Compensation Appeals Board Chairman, Benefits Review Board Chief Administrative Law Judge Deputy Under Secretary for Legislative Affairs Deputy Under Secretary for International Affairs Associate Deputy Under Secretary for International Affairs Associate Deputy Under Secretary for Trade and Adjustment Policy Solicitor Deputy Solicitor Assistant Secretary for Policy, Evaluation and Research Deputy Assistant Secretary Assistant Secretary for Administration and Management Deputy Assistant Secretary Librarian Assistant Secretary for Employment Standards Deputy Assistant Secretary and Administrator, Employment Standards Administration John T. Dunlop1 John C. Read2 Donald R. Crowell Richard H. Lukstat3 John W. Leslie Vacant4 Vacant Floyd G. Ansley Ruth V. Washington H. Stephen Gordon James H. Hogue5 Joel Segall Edward B. Persons Herbert N. Blackman William J. Kilberg Alfred G. Albert Abraham Weiss Ralph Mueller6 Fred G. Clark Eckehard Muessig7 Lillian A. Hamrick Bernard E. DeLury Robert C. Chase8 'Appointed 3/18/75 to replace Peter J. Brennan ’Appointed 3/27/75 to replace Thomas M. Phelan ’Appointed 5/11/75 4Richard F. Schubert resigned 3/21/75 ‘Appointed 5/11/75 ‘Appointed 6/22/75 ’Appointed 8/18/74 to replace Tom Kouzes 8Appointed 5/25/75 to replace George S. Roukis Deputy Assistant Secretary and Director, Office of Federal Contract Compliance Deputy Assistant Secretary and Director, Women’s Bureau Deputy Assistant Secretary and Wage-Hour Administrator Commissioner of Labor Statistics Deputy Commissioner for Statistical Operations and Processing Deputy Commissioner for Data Analysis Assistant Secretary for Occupational Safety and Health Deputy Assistant Secretary and Administrator, Occupational Safety and Health Administration Assistant Secretary for Manpower Deputy Assistant Secretary and Administrator, Manpower Administration Associate Manpower Administrator, Office of Policy, Evaluation and Research Associate Manpower Administrator, Office of Manpower Development Programs Administrator, Bureau of Apprenticeship and Training Associate Manpower Administrator, U.S. Employment Service Associate Manpower Administrator, Unemployment Insurance Service Associate Manpower Administrator, Field Direction and Management Associate Manpower Administrator, Office of Financial and Management Information Systems Philip J. Davis Carmen R. Maymi Vacant Julius Shiskin Thomas W. Gavett Janet L. Norwood John H. Stender Howard J. Schulte William H. Kolberg Ben Burdetsky William B. Hewitt Pierce A. Quinlan Hugh C. Murphy William B. Lewis Lawrence E. Weatherford’ Floyd E. Edwards Vacant ’Appointed 6/8/75 Assistant Secretary for Labor-Management Relations and Administrator, Labor-Management Services Administration Deputy Assistant Secretary and Deputy Administrator Assistant Administrator for Field Operations Administrator for Pension and Welfare Benefits Director, Office of Employee Benefits Security Deputy Director, Office of Employee Benefits Security Director, Office of Labor-Management and Welfare-Pension Reports Director, Office of Veterans’ Reemployment Rights Director, Office of Labor-Management Relations Services Director, Office of Labor-Management Policy Development Director, Office of Federal Labor-Management Relations Director, Office of Administration and Management Regional Directors Atlanta Boston Chicago Dallas Denver Kansas City New York Philadelphia San Francisco Seattle Paul J. Fasser, Jr. Robert B. Lagather Jack A. Warshaw James D. Hutchinson10 J. Vernon Ballard11 Travis Knight12 Vacant Vacant Beatrice M. Burgoon August F. Cantfil13 Louis S. Wallerstein Albert L. Moore, Jr. Robert M. Burns Gerald P. Reidy Alexander P. White Paul W. Story Samuel R. Martinez Richard C. McAvinew Stephen D. Blum J. B. Archer George W. Smith James T. Hughes '“Appointed 6/25/75 "Appointed 6/8/75 12Appointed 6/8/75 13Appointed 9/1/74 For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 - Price $1.80 Stock Number 029-000-00250-9. United States Department of Labor Annual Report 1975 Contents 1—-.......................................................Report of the Secretary of Labor 9.............................................................. -.........-.... Department reports 9........ -........................................................ -Manpower Administration 21—.................................Labor-Management Services Administration 29 -....................................... Employment Standards Administration 37.................................Occupational Safety and Health Administration 43......................-.................................. Policy, Evaluation and Research 45........................................................... ....... Bureau of Labor Statistics 57............................................................. Office of the Solicitor 67...................... Office of the Assistant Secretary for Administration and Management 71................ International Labor 73......... Employees’ Compensation Appeals Board 75............ .Benefits Review Board 77............................................................................ Information activities 79....................... -........ -.................................................Appendix tables Report of the Secretary of Labor As the Department of Labor closes Fiscal Year 1975, it can look back on much progress toward protecting and improving the welfare of American workers. Although recession caused growing numbers of men and women to suffer the financial shock of unemployment, emergency legislation was passed extending and expanding their right to collect unemployment insurance benefits and creating thousands of new public service jobs. In late spring, the recession reached its turning point and by mid-year, the recovery was in process. During these periods, the legislation continued to serve the best interests of the American worker. Some 35 million Americans participating in private pension and welfare plans gained new financial protections with the signing of the landmark Employee Retirement Income Security Act. Millions of the nation’s lowest paid workers began benefitting from amendments to the Fair Labor Standards Act through gradual increases in the federal minimum wage and new coverage. Disabled and Vietnam-era veterans, as well as mentally and physically handicapped Americans, gained new legal rights to equal employment opportunity. Workers adversely affected by increased imports began to receive the benefits of a liberalized trade adjustment assistance program authorized by the new Trade Act. The first benefits under this program were determined by the Department on May 15, 1975. Countless workers in all types of occupations and industries benefitted from strengthened enforcement, education and training efforts under the Occupational Safety and Health Act. And older workers, minority group members and women continued to increase their status and opportunities in the workforce with the help of apprenticeship training and outreach programs, affirmative action hiring plans in government contract firms and the enforcement of laws protecting them from discrimination based on race, color, sex, age, religion and national origin. Despite these many signs of progress affecting workers during the year, much work remains to be done. Serving the best interests of working men and women, and those who seek work, is a continuing process. Many problems still must be solved to achieve long-range, permanent improvements on behalf of America’s wageearners. Uppermost on the list of unfinished business for 1976 is the need to achieve full recovery from economic recession. On the occasion of my swearing-in, on March 18, 1975, I dedicated myself to the very first priority in this Nation—to get the economy moving and to restore people to work and improve business conditions so that enterprises 1 will have the incentive to create new jobs. Using policies and programs aimed at increasing consumer buying power, stepping up demand for goods and services and promoting industrial productivity and expansion, we must continue to work toward hastening the process of restoring the jobs and income lost by millions of American workers during recession. Important, too, is the need to insure long-term stability in our nation’s economy, avoid renewed inflationary spirals and allow for continued economic growth and expansion. With a growing labor force each year and the increasing workforce participation of women and other groups, a healthy and growing economy will be essential in meeting our projected need for at least 2 million new jobs annually until 1980, and an estimated 1.5 million additional jobs annually between 1980 and 1985. Faced with the challenge of creating new jobs for America’s present and future workers, we must not lose sight of the continuing need to assure that all jobs provide men and women with equal opportunity for stable employment, decent pay and fringe benefits and safe and healthful working conditions. Government is already equipped with strong laws and regulations protecting workers’ rights to equal employment opportunity. The task of eliminating job discrimination and providing true equality for minority group members and women has yet to be achieved, however, partly because these laws and regulations create undue administrative burdens and confusion for government and employers alike. During 1976, a concerted effort by all federal agencies involved in administering civil rights legislation will be required to eliminate overlapping and confusing regulations; reduce unnecessary paperwork, time and money currently required of employers in achieving compliance; and generally streamline the federal equal opportunity enforcement effort. Vigorous enforcement of laws protecting workers’ wages, hours and working conditions also continues to be a priority. Labor Department investigations annually reveal millions of dollars owed to workers illegally paid below federal minimum wage and overtime rates. Migrant farm workers and young children continue to be victimized by unsafe, unhealthful working conditions and other forms of exploitation. More research and other activity leading to development of new job safety and health standards is a must in eliminating the alarming number of hazards to which workers are exposed in industry. Special attention must be focused on identifying and eliminating the health hazards caused by excessive exposure to certain industrial chemicals, materials and noise. All due haste and care is needed to complete the groundwork for effectively administering 2 the Employee Retirement Income Security Act of 1974. Regulations, administrative machinery and a system of coordinating the vast and complex responsibilities of the Labor Department and other agencies administering this law must be put in place, for this legislation not only influences the financial futures of millions of American workers, but also has a significant monetary impact on employers; unions; banks; insurance companies; stock, bond and capital markets; and corporate and government financing. In yet another move to protect the well-being of workers and the health of our nation’s economy, we must improve and update the federal-state unemployment insurance system. Our recent experience with high levels of unemployment over the past year provides an occasion to learn how that system might be best improved. Present weaknesses in the system leave some 12 million American workers without any unemployment insurance protection, limit more than 40 percent of all covered workers to a pre-tax weekly benefit amount of less than one-half their average weekly wage, and do not provide for adequate financing of the system at either the federal or the state levels. Corrections in these and other deficiencies are clearly needed to strengthen the unemployment insurance system and assure that it fulfills its original purpose—to protect workers and business from the financial drain of temporary, involuntary unemployment. Government, by law, has a distinct regulatory role in improving the quality of jobs and work and maintaining a healthy economy. Yet in many ways government can serve only as a catalyst and advisor to the private sector, for that is where the initiative for change and improvement must originate. Much of this change and improvement will depend on the voluntary efforts of labor and management to strengthen our nation’s free collective bargaining system and stabilize industrial relations, for many of the protections, benefits and privileges enjoyed by American workers today have been won through the agreement of both parties at the nation’s bargaining tables. In construction—an industry which has far-reaching impact on the economy—national union and contractor representatives have been responsible for a vastly improved industrial relations climate over the past several years. Work stoppages declined, contract negotiations in many localities tended to cover wider geographical areas and more crafts, and more concern was demonstrated for easing work rules and other restrictions that previously hampered productivity and raised costs. The expiration of construction industry wage and price controls on May 1, 1974, however, has recently brought a return in many localities to widespread work stoppages; whipsawing 3 negotiations; disregard for productivity; and excessive, economically damaging wage increases. While national labor and management representatives have strived to deal with these local problems, they continue to lack authority needed to effectively resolve them. To provide a national forum for peacefully resolving these sensitive issues and otherwise facilitating collective bargaining in the industry, the Collective Bargaining Committee in Construction was established by Executive Order 11849 by the President in April, 1975. The Committee is chaired by the Secretary of Labor and has as an ex-officio member the Director of the Federal Mediation and Conciliation Service. Members, representing both labor and management, are charged with a number of duties aimed at improving labormanagement relations nationally and locally, promoting more effective collective bargaining procedures, and generally helping to increase construction productivity. The committee’s specific goals include providing a data bank of wage and benefit information; encouraging and, if necessary, assisting in the peaceful resolution of disputes; broadening the scope of agreements through coordinated local and area bargaining; and identifying means for improving the training, availability and utilization of construction manpower. The work of this committee, if accompanied by the sincere efforts of construction labor and management to improve collective procedures and some form of federal legislation offering better protections to both parties in disputes, should do much to stabilize and enhance relations in an industry vital to our national economic welfare. Another area in which the voluntary initiative of labor and industry will play a key role in the years ahead involves meeting the growing demand of workers for better jobs. This initiative will also be needed if our nation is to respond favorably to other social, demographic and economic changes. For example, as workers continue to become better educated, their level of skills and personal expectations concerning their jobs will also rise. This makes the search for ways to create better jobs a national priority. Whether workers are employed in technical, professional, service or blue collar occupations, every attempt should be made to assure that their jobs offer decent pay and benefits, challenging and rewarding job content, opportunities for advancement and healthy and safe working conditions. “Good” jobs which conform to these standards already exist in all sectors of the economy, but it is significant to note that desirable jobs are most prevalent in industries investing the highest amounts of capital per worker on expanding and improving their facilities. 4 These capital investments are not only associated with higher hourly earnings, but also with creation of new jobs and new opportunities for upward mobility. In industries where capital investment is accompanied by use of new technology, working conditions also tend to be better than average. Thus, in meeting the challenge of improving job quality, our objective must be to encourage technological development and capital formation. Better technology and more research into technology would not only spur new investment, but would also increase productivity; and the benefits of an increase in output and income resulting from new capital formation would help provide a higher standard of living and better income for all Americans, regardless of whether or where they are employed. As workers grow more educated and increasingly seek out higher quality jobs, other changes will occur in our labor force which have many implications for the private sector, as well as government. Already, we have seen an increase in the average life span contribute to a growing interest in Social Security and other retirement benefits. Future attention must also be focused on the problem of helping older citizens move as easily and productively as possible from work to retirement, for the percentage of our population aged 65 and older is expected to rise from 9.8 percent in 1970 to 10.7 percent in 1980 and 11.3 percent in 1990. In addition, the labor force participation of workers aged 60 and older will continue its present decline. The projected decline in the proportion of our population aged 16-24 may herald a shift in the size or scope of education and training programs. Meanwhile, the relatively large increase expected in men and women aged 25-44—from 24 percent of our population in 1970 to 27 percent in 1980— promises to supply our labor force with a degree of experience, maturity and energy that will greatly enhance our potential for industrial productivity. This development again spells out the need to begin creating a more adequate supply of good jobs, so that workers in this age group will be able to realize their full potential in our economy. Ongoing shifts in the structure of the job market will result in other changes for which government and the private sector should be prepared. While employment in the public, retail, finance and service sectors of our economy is expected to continue its present expansion, employment in the goods-producing sectors— manufacturing, transportation, public utilities, mining and construction—is projected to continue its present relative decline. These changes will have a major impact on our nation’s manpower training needs. One of our most valuable tools in 5 meeting these needs will be the Comprehensive Employment and Training Act (CETA) of 1973, for this law gives local elected officials and manpower experts the flexibility to plan, design and manage locally tailored manpower programs geared toward the unique and changing needs of workers and employers in their areas. In the years to come, the federal government must strengthen its role under CETA as a technical advisor to the state and local governments using manpower revenue sharing funds. It must take the lead in developing and disseminating improved local and area labor market information as an aid to manpower planners. It must also find ways to coordinate more effectively the broad range of federal programs having an impact on the labor market, including CETA, vocational rehabilitation, vocational education and social services. Above all, the federal government must exercise its influence to bring together key groups at the local levelincluding local government officials, employers, labor representatives, members of private organizations and educators—so new relationships and new lines of communication can be formed and all groups can take part meaningfully in planning effective manpower systems. A key requirement for fulfilling our present and future manpower needs involves providing young people with quality education relevant to jobs and careers. At present, many young people devote years to learning a skill or studying for college degrees, only to find that jobs in their chosen fields have grown scarce. Others acquire advanced training or education and then are told by employers that they are overqualified for most of the jobs available. Still others may successfully launch new careers, but find that their academic background bears little or no relation to the requirements of their jobs. President Ford spotlighted these problems in a commencement address at Ohio State University during August 1974. Noting that young people often face a difficult transition from school to the world of work, he called for a “new partnership” of labor, business and education to help fuse “the realities of work-a-day life with the teachings of academic institutions.” New links between education and work are no less important for adult workers. In this age of rapid technological advancement and constant economic and industrial change, many workers are faced with a compelling need to update their skills or acquire new ones. They also should have more opportunities to acquire training needed for upward mobility, to return to school to pursue personal interests or to prepare for alternative careers if they so desire. Some new bridges between academia and the business world can be built with already 6 existing materials—by integrating, revising or strengthening the job training functions already being performed by our nation’s private vocational schools, junior colleges, military personnel training programs and the apprenticeship system. Other bridges to close the present gap between education and work might involve entirely new undertakings, such as sending workers and employers into schools to inform students about more of the practical aspects of jobs, or allowing educators to spend time gaining firsthand experience and sharing theoretical knowledge in industrial settings. With government acting as a catalyst to get concerned people working together on this effort in their communities, we can help expand the scope and availability of useful, joboriented education; enhance the employability of American workers; provide industry with a better trained, more productive work force; and generally build systems of education and work that serve people and our economy better. The report will cover in more detail the matters upon which I have touched. It should be noted that the Department’s progess during Fiscal Year 1975 largely was a culmination of efforts under the leadership of Secretary Peter J. Brennan and Under Secretary Richard F. Schubert. I especially want to thank Secretary Brennan, whom I succeeded on March 18, 1975; Under Secretary Schubert; and Thomas M. Phelan, Executive Assistant to the Secretary, for their full cooperation in facilitating the education of the 14th Secretary of Labor. As the Department of Labor moves into its 63rd year of operation, I look forward to continuing the efforts of my predecessors and building upon their contributions in the best interest of American workers and the country. 7 Department Reports Manpower Administration Despite adverse economic conditions, the Manpower Administration was able to meet many of its goals and objectives for the 1975 fiscal year. The public employment service made about 4.4 million nonagricultural job placements during the year, and the first full year of operation under the Comprehensive Employment and Training Act (CETA) saw an emphasis on public service employment, as Congress moved to ease the unemployment situation. Special programs continued to serve those most in need of help —veterans, youths, the poor, and members of minority groups. Efforts to increase the level of 9 participation and quality of jobs for women in the work force were also stepped up as part of the observance of International Women’s Year. Other programs were directed toward solving the employment problems of special groups, such as the Work Incentive Program to move people off welfare rolls, the Indian manpower program, and programs for older workers, migrant and seasonal farmworkers, and ex-offenders. The Job Corps, a residential program for severely disadvantaged youths, observed its 10th anniversary. Unemployment insurance benefits more than doubled during the year, with about $12.3 billion paid to approximately 12.1 million persons. Emergency unemployment assistance legislation extended benefits to some groups previously not covered and increased the length of time that benefits could be paid. Community Manpower Programs The first full year of operation under the Comprehensive Employment and Training Act (CETA), which decentralized manpower activities, was completed during the fiscal year. Grants totaling more than $2.9 billion under Titles I, II and VI were made to 403 units of State and local government to carry out the provisions of the Act. Eligible prime sponsors included 58 cities, 156 counties, 134 consortia, 45 balance-of-State sponsors, and four rural 10 Concentrated Employment Programs, with the District of Columbia and U.S. territories and possessions making up the remaining six. Programs of comprehensive manpower services, including recruitment, orientation, counseling, placement, institutional and on-the-job training, and a variety of other supportive services, were established. The law also provided for creation of transitional public employment jobs. Passage of emergency job legislation midway through the fiscal year increased emphasis on the creation of public service employment (PSE). Enrollments in PSE jumped from 56,000 in December 1974 to more than 250,000 by the end of March 1975. The estimated numbers of cumulative enrollments by the end of the fiscal year were: Title I (comprehensive manpower services), 1.1 million; Title II (public service employment), 227,000; Title VI (public service employment), 157,000. When the 247,000 enrolled in categorical programs through December 1975 are added, the estimated total enrollment for Titles I, II and VI for the fiscal year came to over 1.7 million. The Manpower Administration continued to provide technical assistance and guidance to insure that Federal funds were properly spent. It also published additional regulations in the Federal Register. Plans were underway at the end of the year to serve an additional number of eligible prime sponsors, which increased to 430. Employment Service Overall placements by the public employment service (ES) during the year were down only slightly from a year earlier. In a period when total unemployment was rising steadily to a rate of 8.6 percent at the close of the year, total nonagricultural placements, at 4.4 million, were only about 11 percent below those of the previous year. The number of different individuals placed in jobs, 3.1 million, was down by only about 6 percent. Job placement records for some hard-to-place groups, however, showed gains. Other groups showed only slight declines. For example, 592,000 veterans were placed in jobs through public employment offices during the fiscal year, a decrease of less than 3 percent. For Vietnam-era veterans (391,000 placed), the decline was less than 1 percent. Placements for handicapped veterans and poor people (891,000) increased slightly during the year. The number of placements reflected a continuing effort to modernize job matching and related services and to provide improved services to groups such as Vietnam-era veterans and others with specific employment barriers. Intensive efforts were also made to improve the quantity and quality of services to migrant and seasonal farmworkers. A special task force was established in the U.S. Employment Service (USES) to assure that appropriate changes were made in State ES agency operations and to act as liaison with a court-appointed special review committee. In recognition of International Women’s Year, USES continued a plan to bring full equity of services to women. Program guidelines were revised to reflect equal employment opportunity for women, and publicity materials were developed on the theme “Equality for Women in Work.” Developmental work on a sophisticated system of computerized job matching continued during the year. Six experimental sites completed the implementation of matching systems. Some elements of the system were revised and refined in preparation for further expansion during the 1976 fiscal year. The ES modernization program, involving relocation and rehabilitation of local ES offices to make employment services more readily available, was expanded to 88 sites in 17 States. The project, also designed to increase placements and improve responsiveness to employers, provides services to applicants and employers in their own neighborhoods by making use of improved technology such as Job Bank and the Job Information Service. The Employer Services Improvement Project (ESIP) was extended to 27 more cities in 16 States, bringing the total to 80 communities in 27 States and involving 1,800 employers. ESIP is a model for improving the quality and quantity of ES services to employers. Operational problems are 11 identified and solutions are found through close working relationships between employer committees and local ES offices. In six cities, efforts were completed to implement the recommendations of the National Employers’ Committee for Improvement of the State Employment Services. Evaluation of the projects disclosed an increase in placements and job orders in those sites where substantial improvements were made. Fiscal 1975 was the second year of the 3-year Employer Services and Job Development Public Communications Project, designed to develop high-quality multimedia public communications programs and to make the new Job Service symbol the trademark of the public employment service. The effort seeks to increase job listings, registration of highly skilled jobseekers, and placements. Twenty-nine States have participated in the project. Among its special activities, the employment service participated in the Indochina Refugee Program by stationing USES staff at the Interagency Task Force Headquarters and State ES staff at each of the refugee reception centers. Staff provided technical assistance to the voluntary agencies in assessing refugee occupational skills and providing labor market information. The services of State ES offices were made available to the refugees for job referrals and placement at theirfinal resettlement location. In cooperation with State employment services, USES continued to develop and refine aptitude and proficiency tests used in selecting and counseling job applicants. Emphasis was placed on developing aptitude tests that predict success in specific occupations and are equitable with respect to minority applicants. Efforts included a new Spanish edition of the General Aptitude Test Battery and an improved Nonreading Aptitude Test Battery for use with educationally deficient applicants. However, because of the shift of counseling resources into direct placement activities, the number of individuals counseled fell to 885,000, or 9.9 percent, below fiscal 1974. Apprenticeship Information Centers, located in 30 local offices, placed nearly 9,000 persons in apprenticeship, including more than 1,700 minority group applicants. The drop from fiscal 1974 was due primarily to the decline in the construction industry. Services to Veterans State employment service agencies continued to place emphasis on obtaining jobs or training opportunities for veterans. The unemployment rate for Vietnam-era veterans increased from 5.1 percent at the end of fiscal 1974 to a high of 9.9 percent in April and stood at 9.7 percent at the end of fiscal 1975. In spite of difficulty in placing workers, the employment service placed 592,000 veterans (down 12 only 2.8 percent from fiscal 1974), 391,000 Vietnam-era veterans (a decrease of only 0.5 percent), and 76,000 handicapped veterans (an increase of 2.7 percent). The Interagency Jobs for Veterans Advisory Committee was formed to streamline and combine the activities of the Jobs for Veterans program and also to achieve the objectives of the President’s Veterans Program. In addition, 10 regional veterans employment representatives were added to the field staff of the Veterans Employment Service. These positions were created to increase the Manpower Administration’s efforts to produce jobs and training opportunities for veterans. Mandatory listing of job openings with the employment service by Federal contractors continued at about the level of the previous year. Veterans placed in such jobs decreased only slightly, from 111,000 in fiscal 1974 to 110,00 in fiscal 1975. Disabled veterans continued to receive special attention. A study commissioned by the Manpower Administration disclosed that disabled veterans may experience unemployment at double the rates for comparable age groups of nondisabled veterans. The State employment service agencies have taken appropriate action to insure adequate services to disabled veterans, to develop cooperative relationships with other agencies and community groups, and periodically to review such services. Under a special outreach employment program conducted by the Blinded Veterans Association through a contract with the Department of Labor, blind veterans were contacted and provided with job search and placement assistance. The project has been renewed for the 1976 fiscal year. Work-Experience and Training The Comprehensive Employment and Training Act (CETA) specified that certain programs could best be administered at the national level. Among them were programs for Indians and migrant and seasonal farmworkers. The Manpower Administration’s Office of National Programs took steps to see that these programs, as well as a program for older workers, were fully implemented during the year. Of particular significance was completion of the first full year of the program to provide manpower services to Indians and other native Americans throughout the country through direct grants to Indian tribes, bands or groups. Grants were also made to private nonprofit organizations established to provide services to these groups. The Indian program operates through 145 grants, which cover virtually the entire country, including Alaska, at a cost of $68 million. It is administered by a national staff, half of whom are Indian. To provide better service to the Indian prime sponsors, 10 staff members are stationed in the field. 13 The migrant and seasonal farmworker program underwent significant changes during the year. Resources were allocated to the States on a formula basis, and a competitive system for selecting prime sponsors was established, eliminating many past inequities in providing needed services to this group. Operating in all States except Alaska, the migrant program has made 65 grants, 43 with private nonprofit organizations and 22 with CETA prime sponsors. The older worker program, previously funded under CETA and providing subsidized employment in community beautification and conservation projects, has been continued under the authority of the Older American Community Service Employment Act of 1973. It is operated through national contracts with five organizations: Green Thumb, Inc., the National Retired Teachers Association, the National Council of Senior Citizens, the National Council on Aging, and the Department of Agriculture’s Forest Service. Other national programs serving the disadvantaged, veterans and minorities are conducted by the National Alliance of Businessmen, the Human Resources Development Institute (AFL-CIO), the National Urban League, Opportunities Industrialization Centers, and SER/Jobs for Progress. Work Incentive Program The Work Incentive (WIN) Program, designed to move people off the welfare rolls into productive work, directed much of its efforts during the year toward raising the level of jobs in which it placed participants. Under a contract with the Center for Human Systems, Inc., WIN staff were trained to increase job opportunities for women (who comprise 75 percent of WIN participants) by overcoming traditional barriers. During the year, 590,000 persons entered the WIN program and received counseling, orientation and placement into jobs ortraining, and 170,500 WIN participants obtained unsubsidized jobs through the program. The collocation of WIN staff of the Department of Labor and the Department of Health, Education, and Welfare—the agencies responsible for the program— resulted in improved program operations. Other program improvements included allocation of funds based on performance factors as well as caseload size and the replacement of the manual reporting system by an automated data system. Job Corps Job Corps observed its 10th anniversary during the year with a day-long program in Washington, D. C., featuring exhibits, speeches, panels and other activities honoring corpsmembers. Similar observances were held at Job Corps centers throughout the United States. More than one-half million youths have been served 14 by the program since it began. Since Job Corps is now authorized under Title IV of CETA, new regulations were developed and published in the Federal Register. Handbooks and guides were also revised to conform to the regulations. A major innovation in program operations was the conversion of several centers into coeducational facilities. In addition to the increased training opportunities for women at these centers, other centers are offering nontraditional vocational training for women. Sixteen centers have been approved for coeducational programs. Union programs operating at Job Corps centers were increased during the year by about 500 training slots. The unions placed over 90 percent of program graduates in jobs with average hourly starting salaries of $4.20. Educational activities at the centers were reviewed in an attempt to integrate basic education and vocational programs. A new system of vocational training was tested, handbooks were revised, and educational materials were sent to each center for pilot testing. Apprenticeship The number of persons entering apprenticeship showed a slight decline during the year. There were 65,035 new apprentices, bringing the total registered at the end of the year to 183,615. The number of minority apprentices continued to increase. They now constitute 16 percent of participants. Although final State figures are not available, it is estimated that these would increase the overall number of apprentices by one-third, or about 60,000, with a comparable percentage of minorities. Efforts to increase the number of women in apprenticeship programs continued. Five outreach projects were funded to inform interested groups of apprenticeship opportunities for women. The Bureau of Apprenticeship and Training (BAT) assisted industry in developing 242 new skill improvement programs that provided training to 8,281 workers. This brought the total number of workers in skill training programs to 20,893. An agreement was signed with the Army Corps of Engineers to give creditfor skill training in the military toward apprenticeship or journeyman status in a civilian occupation. BAT also cooperated with the Departments of Navy and Commerce to encourage training opportunities for occupational skills in the shipbuilding industry. Three new trades were added during the year to the list of apprenticeable occupations— surveyor, wastewater treatment plant operator and water treatment plant operator. Unemployment Insurance Unemployment insurance (Ul) benefits more than doubled during the year, with about $12.3 billion being paid to 15 approximately 12.1 million individuals. About 272,000 were veterans assisted during their transition to civilian employment. The Special Unemployment Assistance (SUA) program was enacted to provide federally financed benefits to individuals who were formerly employed in areas of high unemployment and not covered by the State Ul programs—primarily State and local government workers, farmworkers and household workers. These benefits became payable when the unemployment rate had averaged 6 percent or higher nationally or 6.5 percent or higher in a local area for the three most recent consecutive months. Workers could receive up to 39 weeks of SUA benefits at a weekly rate that would have been payable if their wages had been covered under a State Ul law. There have been about 341,000 beneficiaries during the year and $183 million paid in benefits. The Emergency Unemployment Compensation Act of 1974 was passed to provide a federally financed program of Federal Supplemental Benefits (FSB) to unemployed workers who had exhausted both their regular Ul benefits and extended benefits under the Federal-State Extended Unemployment Compensation Act of 1970. The program made possible, initially, a potential maximum of 52 weeks of benefits; later, by amendment, of 65 weeks. Under the Federal-State extended benefits program, $1.1 billion was paid in benefits, and under the FSB program, $0.5 billion was paid. As a result of 44 disasters in 27 States, about 7,900 unemployed individuals received $3.4 million in Disaster Unemployment Assistance (DUA). During the year, under the Trade Expansion Act of 1962,12 petitions were certified. Readjustment allowances of over $12.3 million were paid to more than 5,500 individuals affected by trade concessions. Under the Trade Act of 1974, which became effective on April 3,1975,15 petitions were certified. Readjustment allowances of about $212,000 were paid to over 3,400 workers during the final 3 months of the fiscal year. Considerable attention was given also to the first comparative analysis of program operations. Data derived from cost model studies were used in all 52 jurisdictions. From the analysis, action plans were submitted to the State agencies recommending cost-effective systems and procedures, over 62 percent of which have been implemented. Studies to determine effective procedures to prevent and detect benefit overpayments were also completed, and cost-effective systems and procedures will be recommended to the States during the next fiscal year. A study was made of SUA administrative costs in four States to provide budget criteria. To strengthen the unemployment insurance program, to which workers have looked for 40 years for income maintenance protection, the Administration proposed legislation to expand coverage to 16 certain jobs that have lacked such protection. The bill would also assure that a State’s weekly benefit amount will meet a Federal standard for replacement of lost weekly wages, improve the financing of Federal costs by increasing taxable wages, and establish a National Commission on Unemployment Insurance to make a comprehensive review of the Federal-State unemployment insurance program. The Federal Advisory Council on Unemployment Insurance, a mechanism for public participation in Ul policymaking, was revitalized during the year. Composed of employer, employee and public members representing a wide diversity of occupations, industries and special interests, the Council operated for the first time under its own leadership, advising the Secretary of Labor on improvements needed in the Ul system. The Council considered such topics as adequacy of benefits, system financing needs, emergency benefits during recessionary periods, and expanded coverage. Recommendations were considered by the Department in developing its legislative program. Research, Development The major evaluation study completed during the year analyzed the effectiveness of public employment programs underthe Emergency Employment Act. As part of an overall evaluation of CETA manpower programs, a comprehensive study of the early implementation of CETA was conducted, and a longitudinal study was initiated through the Bureau of the Census to determine how the program affected postprogram employment earnings of CETA participants. Other research and development projects included: a demonstration of the use of publicly supported, low-stress work environments to ease the transition into the work force of those persons not yet ready to withstand the pressure of the competitive labor market, including youths, female heads of households on welfare, ex-offenders, and ex-addicts; an extension of a successful demonstration of the use of income maintenance to enhance the adjustment of ex-offenders to life outside prison, and a demonstration of methods for overcoming obstacles to employment of minority collegeeducated women in professional and managerial jobs. A research program was conducted to gather data and information necessary to enhance the effectiveness and strengthen the performance of the employment service system, and vouchers were experimented with to finance self-selected institutional and on-the-job training of welfare recipients. The Manpower Administration continued to support manpower researchers by funding doctoral and postdoctoral research. It also supported the development of manpower practitioners needed 17 under decentralized CETA manpower programs by maintaining programs at 13 universities and colleges for the training of State and local planners and deliverers of manpower services. The International Manpower Institute conducted two seminars —one on maximizing employment in developing countries and the other on rural employment and poverty in these countries. A series of strategy intervention papers, for executive management use, assessed the 1975 economic outlook, its impact on manpower, and the development of alternative policy and program approaches for coping with the rise in unemployment. Reports, position papers and policy statements were prepared to assist policymakers in dealing with a variety of manpower topics for use by outside agencies. Management Improvement In keeping with policy of decentralizing authority to the field, the Manpower Administration redirected operational planning and control reports to assistant regional directors for manpower so they can better assess their program performance. Budget plans of employment security agencies were also streamlined to fit current use of performance budgeting. To raise the capability of manpower staff at all levels, plans were made for staff training centers in each region. Funds to begin operation were allocated prior to the end of the fiscal year. The Manpower Administration directives system was redesigned to include a standardized format and layout and a classification and index system for all directives. The format and system of control for handbooks were also revised. A methodology to update data on adults in low-income families was developed for use in CETA Title I allocations. Substantial progress was made during the year to improve funding, planning, operation and evaluation of the labor market information (LMI) system. Funds from all sources were earmarked at the national level for the LMI system; specific plans for utilizing these funds were required, and a system for monitoring and reviewing LMI operations and fund utilization was developed. Comprehensive instructions were developed for reporting labor force and employment and unemployment data for States, counties, labor market areas, CETA prime sponsor jurisdictions, and areas of substantial and persistent unemployment. The Manpower Administration laid the groundwork for overall improved management by establishing in comprehensive form its goals and objectives for the 1976 fiscal year. Using this as its guide, each major Manpower Administration component organized and coordinated its activities in detailed work plans for the year. 18 Equal Employment Opportunity Women were the focus as the Department joined in observance of International Women’s Year proclaimed by the United Nations. Plans for its observance by program components and regional offices gave evidence of broad commitment to the concept of equality for women and other minorities in the labor force. CETA prime sponsors were encouraged to identify employment and promotion barriers to women and minorities and to make every effort to fully utilize their capabilities. An affirmative action clause on the employment of women was included in all national contracts. In line with the move toward decentralization, the Office of Investigation and Compliance provided guidance and assistance to the field to insure compliance with equal employment opportunity (EEC) laws and regulations. Training was provided in five different regions, and a 3-day workshop for EEO representatives was held in Washington. 19 Labor-Management Services Administration President Ford’s signing of the pension reform law—the Employee Retirement Income Security Act of 1974 (ERISA)— highlighted the 1975 fiscal year for the Labor-Management Services Administration (LMSA), which administers key provisions of that law. One of the longest and most complex laws ever enacted by Congress, ERISA provides new assurances to millions of workers in private industry that they will receive the pensions to which they are entitled and which they have earned. Its administration required LMSA to reorganize several offices and to create some new ones. The Office of Labor- Management Welfare-Pension Reports (LMWP), which had administered the former pension law (Welfare and Pension Plans Disclosure Act of 1958) and the Labor-Management Reporting 21 and Disclosure Act of 1959 (LMRDA), was split into two new offices: the Office of Employee Benefits Security (OEBS), to administer ERISA, and the Office of Labor-Management Standards Enforcement (LMSE), to administer LMRDA. An Office of Planning, Evaluation and Systems was created to provide support services in program planning, program evaluation and systems management activities. But ERISA-related changes were not the only ones in LMSA. Amendments to Executive Order 11491, regulating labormanagement relations in the Federal service and administered in part by LMSA, were approved by the President, and these amendments made substantial changes in the Order. The law governing veterans’ reemployment rights was renamed, recodified and expanded to include employees of State and local governments. Other LMSA activities included assistance in improving labormanagement relations and enforcing and securing voluntary compliance in connection with laws regulating veterans’ reemployment rights and union activities. LMSA also participated in investigations supporting the President’s Program Against Organized Crime. Employee Benefit Plans The Employee Retirement Income Security Act (ERISA), enacted September 2,1974, protects the interests of participants and beneficiaries in 22 employee pension and welfare benefit plans. The Act requires reporting and disclosure of plan and financial information to participants and beneficiaries, as well as to the U.S. Department of Labor and, in some cases, to the Internal Revenue Service and the recently created Pension Benefit Guaranty Corporation. It safeguards plan assets through establishment of fiduciary and funding standards. It also safeguards pension benefits through establishment of participation and vesting standards and by requiring plan termination insurance for certain pension plans. In addition, the law provides some measure of protection for widows and widowers through the joint and survivor provisions. ERISA applies to employee pension and welfare benefit plans regardless of size that are maintained by employers engaged in commerce or in any industry or activity affecting commerce, or by employee organizations representing employees so engaged, except those plans specifically exempt. The first reports due under ERISA were to be filed August 31,1975. These reports are a short form plan description. Full plan descriptions and summary plan descriptions will be required to be filed with the Department by May 30,1976, and summary plan descriptions must be disclosed to participants and beneficiaries by that date. The first annual report due under the ERISA will cover the plan year beginning in 1975. A series of regulations and proposed regulations and several interpretative bulletins have been issued as well as two popular pamphlets. The Welfare and Pension Plans Disclosure Act (WPPDA), which was effective January 1,1959, and amended in 1962, also applied to employee pension and welfare benefit plans. It was primarily a disclosure measure under which administrators were required to file plan descriptions and annual reports with the Department of Labor and to disclose certain reports and documents to plan participants and beneficiaries. Section 111 of ERISA repealed the WPPDA except that the WPPDA continues to apply to conduct and events which occurred before the effective date of ERISA. Since the first annual report due under the ERISA is for the plan year beginning in 1975, annual reports for plan years beginning in 1974 must still be filed under the WPPDA. Approximately 190,500 employee benefit plans were on file under the WPPDA as of December 31,1974. Of the total plans on file, about 52,000 were retirement plans. Of the 453 investigations completed, 377 involved delinquent or deficient reports. Compliance, Enforcement There were 53,954 active labor organizations with reports on file under the Labor-Management Reporting and Disclosure Act (LMRDA) as of June 30,1975. LMSA completed 6,116 LMRDA investigations during the year, including 148 involving union elections. The Department instituted 48 civil actions under the Act in Federal District Courts. Twentynine individuals were charged with criminal violations of the LMRDA in indictments or criminal informations filed in Federal District Courts, including 14 as a result of LMSA participation in Organized Crime Strike Forces in 17 major cities. Thirty persons, including some indicted in previous years, were convicted of LMRDA violations. Three were acquitted and LMRDA charges against nine others were dismissed. LMSA received annual financial reports required under the Standards of Conduct Section 18 of Executive Order 11491 from 3,130 active Federal labor organizations. Of the 624 Standards of Conduct investigations LMSA completed during the year, 13 involved Federal union elections and 578 delinquent and deficient reports. Federal Labor-Management Under Executive Order 11491, as amended, the assistant secretary of labor for labormanagement relations supervises representation elections and decides unit determination questions, as well as cases involving alleged unfair labor practices and standards of conduct violations. The assistant secretary also decides eligibility questions on national consultation rights and 23 questions concerning the grievability and arbitrability of grievances under existing negotiated agreements. During the year, 1,366 cases involving representation petitions, unfair labor practice complaints and grievance-arbitration applications were initiated in LMSA’s 24 area offices. During that time, 1,176 cases were closed. In the same period, 325 representation elections were supervised by LMSA field personnel. The assistant secretary issued 127 decisions based upon records of formal hearings conducted before hearing officers or administrative law judges. In addition, the assistant secretary made determinations on 152 requests for a review of actions taken by LMSA assistant regional directors. Veterans’ Reemployment The Department continued to meet its responsibilities to veterans, reservists, National Guardsmen and others having statutory reemployment rights under Chapter 43 of Title 38, U.S. Code, and its predecessor statutes. On Decembers, 1974, the law, formerly Section 9 of the Military Selective Service Act of 1967, was renamed and recodified and its mandatory coverage extended to include employees of State and local governments released from military training or service on or after that date. Partly as a result of this, the number of complaint cases filed rose to 3,516 during fiscal 1975 from 3,239 the previous year, even though it is estimated that total separations from military service remained near the 500,000 per year level. Of the 3,516 cases received, 295 were from State and local government employees. Another factor in the increase in cases received was a substantial rise in National Guard and reservist cases to 418 from only 273 during the 1974 fiscal year. Increased field staff expertise in the reemployment rights program, together with a field reorganization during the year that permitted a higher degree of specialization, led to a reduction in the backlog of pending complaint cases from 825 to 694 during the year despite the increase in cases received. Participation of new veterans in the referral procedure established in cooperation with the Department of Defense continued at about the same proportion— some 59 percent of total separatees—as during the previous fiscal year. Each participating veteran was sent basic information about reemployment rights assistance and other services available to veterans through the Department of Labor. About 40 percent of these veterans, compared with 42 percent the year before, indicated that they had pre-service employers. Those employers were advised of the basic provisions of the reemployment rights law. As a result, many veterans were reinstated in their jobs and accorded their other reemployment rights without 24 further action by the Office of Veterans’ Reemployment Rights (OVRR) of the Labor-Management Services Administration. Copies of the referral forms received by OVRR from the military separation centers were made available to the Manpower Administration’s Veterans’ Employment Service (VES). VES offers assistance to veterans in finding employment in cases where the veterans do not have reemployment rights or do not choose to exercise their reemployment rights with their pre-service employers. Labor-Management Relations There was substantial stability in the relations between labor and management during the year, and the Federal government continued its policy of encouraging resolution of labormanagement disputes with a minimum of direct participation. This policy was followed in negotiations in the aerospace, longshoring, mining, petroleum and maritime industries. Federal action was necessary in one dispute when mediation failed to produce a settlement. On that occasion, a Presidential Emergency Board was oppointed under the Railway Labor Act. The Board investigated and reported on a dispute between the Nation’s railroads and employees represented by the Brotherhood of Railway, Airline and Steamship Clerks. The dispute was later resolved on the basis of the Board’s recommendations. “Early warning” reports covering negotiations which could affect the national interest were provided to the Secretary and other key Government officials. Staff assistance was provided to the Presidential Emergency Board established under the Railway Labor Act. In addition, the Department continued its program of assistance to State and local governments and public employee organizations to establish procedures for resolving labor-management relations problems. Upon request, the Department provided technical assistance, information and data services, and training and conference activities to the participants in the non-Federal public sector. It conducted special training seminars for newly appointed Public Employee Relations Board members, for labor and management representatives, and for third party neutrals. It also provided technical assistance to a number of State and local jurisdictions in drafting public employee rules and regulations and in conducting representation elections. The Urban Mass Transportation Act of 1964 provides that the Secretary of Labor certify that arrangements are made to protect the interests of employees affected by urban mass transportation projects assisted by the Department of Transportation. The Department of Labor certified 279 applications for assistance under the Urban Mass T ransportation Act, involving total project values of some $5.5 billion. 25 Policy Development Legislation was enacted in areas of policy interest such as pension reform, Taft-Hartley coverage of nonprofit hospital workers, and reemployment rights for veterans previously employed hy State and local governments. Policy recommendations were developed on important labormanagement relations issues including extension of Federal labor relations law to farmworkers and protection of workers adversely affected by various governmental and private actions. A number of other proposals affecting labor-management relations were also reviewed and evaluated. These proposals were augmented by a supportive program of analysis and research. The research staff completed a study of welfare and pension plan coverage during layoffs and strikes, and a study of multiemployer pension plan terminations during 1965-1973. The latter is part of a larger study being done by the Treasury Department. Research studies were planned on pension plans required under the Employee Retirement Income Security Act of 1974. LMSA financed studies of “Grievance and Arbitration Procedures in State and Local Agreements,” “Multiemployer Pension Plan Provisions in 1973,” and “Pension Plan Provisions in the Construction Industry, 1973,” which were published by the Bureau of Labor Statistics. LMSA also financed a study of “Arbitration of Public Sector Labor Disputes: The Nevada Experiment,” a condensation of which was published in the Industrial and Labor Relations Review, October 1974. LMSA arranged with the Bureau of Labor Statistics for the collection and maintenance of public sector agreement files and for an extensive analysis of state and local public sector agreements. Funds were supplied to the Bureau of the Census to collectdataon labor-management relations at the state and local government level. Six contracts were awarded for research in the areas of private pensions and private sector labor relations. Planning, Evaluation The Office of Planning, Evaluation and Systems was established under a major LMSA reorganization in January 1975 to provide agency-wide support services in program planning, program evaluation and systems management activities. The major functions of this new organizational unit include direction of long-term and broad-scale planning for program operations; evaluation of LMSA programmatic policies, procedures and systems; provision of systems leadership related to all data systems throughout LMSA, and development and operation of a full range of LMSA computerbased information systems and services. While certain aspects of the Office’s functional responsibilities are still under development, 26 several major projects have been initiated, including an evaluation of the impact of the Labor- Management Reporting and Disclosure Act (LMRDA) on union election activities and internal union administration at the various levels of union organization; an assessment of current LMSA management information systems; the development and implementation of a revised field activity reporting system in order to better meet the needs of field and program managers, and, with contractor assistance, the development of a design concept and specifications for an overall information system to support the new pension program of the Office of Employee Benefits Security. 27 Employment Standards Administration During the 1975 fiscal year, four pieces of major legislation affecting the Employment Standards Administration (ESA) became law. The Vietnam Era Veterans Readjustment Assistance Act of 1974 was passed, requiring Federal contractors on contracts of $10,000 or more to take affirmative action to employ and advance in employment disabled veterans and veterans of the Vietnam era. Amendments to the Federal Employees’ Compensation Act included benefit changes and a major change in the method of providing compensation payments for non-controverted traumatic cases. The Farm Labor Contractor Registration Act was amended to increase contractor coverage, strengthen worker protection and increase the penalties for violations. Amendments to the Rehabilitation Act of 1973 included a change in the definition of “handicapped individual.” Two major reorganizations took place within ESA during the year. The Women’s Bureau’s outreach and community services were consolidated, and its program planning was recognized 29 and provided with full-time staff. A new Office of Federal Contract Compliance Programs was approved late in the fiscal year. The new office includes the former Office of Federal Contract Compliance, Office of Employment Standards for Handicapped Workers, and Veterans Affirmative Action Task Force. This new organization will assure a maximum degree of coordination with respect to policies and procedures common to all the affirmative action programs while maintaining the unique differences of each of the programs. Improving, Protecting Wages During the fiscal year, ESA’s Wage and Hour Division handled 55,200 compliance actions which showed almost 217,000 workers employed in violation of minimum wage standards and 250,000 workers employed in violation of overtime standards. A total of approximately $72.5 million was found due to these workers. Of the workers found underpaid, 80 percent earned less than the Bureau of Labor Statistics lower family income for their area. Over 170,000 workers subject to minimum wage violations and 208,000 workers employed under violative overtime practices received a total of approximately $46.7 million in back wages. The major reason for the difference between the total money found due to employees and the amount actually paid is employers’ refusals to pay back wages in cases considered unsuitable for litigation by the Department. In such cases, the employee has the right to institute private and independent action for the recovery of back wages, and substantial amounts of wages are recovered by employees in this way which are not reflected in the Department’s statistics. Implementation of the 1974 amendments to the Fair Labor Standards Act (FLSA), expanding coverage of the Act, proceeded smoothly. Regulations were issued on minimum wage and overtime requirements for domestic service workers and for law enforcement and fire protection employees. However, the Supreme Court temporarily stayed enforcement of FLSA overtime provisions for State and local government employees engaged in fire protection or law enforcement activities (including security personnel in correctional institutions), pending the Court’s decision in National League of Cities, et al. v. Dunlop. Nevertheless, normal enforcement activity is being undertaken with regard to all other employment brought under the Act by the 1974 amendments. Approximately 17,000 minors were found illegally employed under the child labor provisions of the FLSA during the year, a 15 percent increase over the previous year. Regulations providing for assessment of civil monetary penalties for certain child labor violations were issued at the end of 1974 to be effective on July 18,1975. A proposed regulation which would establish the Work Experience and Career 30 Exploration Program (WECEP) on a permanent basis was also published for comment. Enforcement of the various Government contract labor standards laws, such as the Davis-Bacon and Related Acts, the Service Contract Act and the Contract Work Hours and Safety Standards Act, disclosed $3 million in back wages due approximately 11,300 workers. Over 9,500 workers were actually paid $2.3 million in back wages, compared with 12,000 workers receiving almost $3 million during the previous fiscal year. A total of 12,950 wage determination decisions under the Davis-Bacon and Related Acts were issued during the year. Of this total, 10,669 were project determinations and 2,281 general determinations. General determinations cover all crafts in a specified geographic area and are published in the Federal Register. They may be used by any contracting agency with an appropriate project. Project determinations are issued to the contracting agency, in response to a request, for projects in geographic areas not covered by a published determination. The number of general wage determinations in effect continued to increase, providing wider coverage of geographic areas and diminishing the need for specific project determinations. A total of 5,127 determinations were issued under the Service Contract Act during the fiscal year, an increase of 42 percent overthe number issued in 1974. This increase reflects, to a great extent, the impact of decreasing size standards for contract coverage. Contracts with more than five employees now require wage determinations. These determinations included a wide variety of job classifications required in the performance of numerous types of service contracts awarded by Federal agencies. Improved Federal-State employment standards cooperation and coordination continued to be a priority effort. Technical assistance was provided to over 25 State jurisdictions, including the District of Columbia, as well as to numerous trade unions, employers and other Federal agencies. In many instances, more than one request was received from a State for assistance. Interest remained high in developing more effective State standards to regulate private employment agencies. ESA provided considerable technical assistance in this area to the International Association of Governmental Labor Officials (IAGLO). Equal Employment Opportunity ESA made significant contributions to ensuring equal employment opportunities for all workers regardless of race, color, sex, age, religion or national origin. Two new affirmative action programs were implemented during the year to provide equal employment opportunities for handicapped workers and disabled and Vietnam-era veterans. 31 The program to eliminate sex-based wage differentials, where men and women perform substantially equal work, continued to make progress. Back wage findings under the Equal Pay Act amount to over $26 million due to almost 32,000 workers, nearly all of them women. Almost 18,000 workers received approximately $7.5 million in back wages. Suits involving substantial underpayments to women academic employees were filed against a number of colleges and universities. Additional court actions were instituted in many other industries. Compliance actions to correct illegal age discrimination identified approximately 5,500 individuals discriminated against under one or more of the provisions of the Age Discrimination in Employment Act. Monetary damages of $6.6 million were found due to 2,350 individuals. Approximately $1.6 million was paid in damages to some 725 individuals. International Women’s Year (IWY), 1975, was the focal point of many Women’s Bureau (WB) activities. The Bureau had the responsibility of coordinating the overall Department program to celebrate IWY. The Bureau’s projects in recognition of IWY included a joint United States- Japan Study of the Role and Status of Women in the Labor Force. This study was conducted by the U.S. Women’s Bureau and the Women’s and Minors’ Bureau of Japan. The Bureau also cosponsored with the Inter- American Committee of Women a one-day conference to promote nontraditional occupations for women in the hemisphere. It prepared a paper on “The Role of National Women’s Commissions, Bureaus and Similar Bodies,” given at a worldwide seminar on that subject in Ottawa, Canada. In addition, the Bureau director served as an alternate representative to the U.S. Delegation to the United Nations World Conference of the International Women’s Year, held in Mexico City. The Bureau initiated, as part of its IWY activities, a program directed toward the problems of women in prison and those recently released. The U.S. Department of Justice, Bureau of Prisons, detailed a woman ex-offender to the Women’s Bureau to assist with the program, which includes working with corrections officials, women’s prisons, educators, employers and others to provide job training for women who are in prison and placement in training or jobs upon release. Preliminary plans were made to hold consultations with community leaders and corrections officials in two cities to explore possibilities for community programs focusing on the resocialization of women offenders, and providing job training and employment opportunities. A major program in 1975 was to promote the opening of nontraditional jobs to more women. The Bureau planned and developed 10 conferences in conjunction with the Manpower 32 Administration’s Work Incentive (WIN) II training program to insure greater availability of nontraditional jobs to women in the WIN program. Support was also given to the Manpower Administration’s project to recruit women for apprenticeship outreach programs. Conferences were held by the Bureau in six cities to enlist the support of trade unions, business and industry, and community groups. ESA’s affirmative action programs were consolidated into one organization with the creation of the Office of Federal Contract Compliance Programs. Approximately 22,750 compliance reviews were conducted by Federal compliance agencies to enforce Executive Order 11246, which prohibits discrimination in government contract work because of race, color, sex, religion or national origin. There were 12,450 reviews of supply and service firms and 10,300 reviews in the construction industry. Over 800 notices were issued to contractors giving them 30 days to show cause why enforcement proceedings should not be instituted against them. Four firms were debarred during the year from further government contract work because of violations of the Executive Order. Revised Order No. 14, establishing standardized procedures and reports concerning compliance reviews of government contractors, was fully implemented, with approximately 90 percent of the required reports being received. A study based on data received indicated an increase in the employment of minorities and women on government contracts. Although the development of hometown plans slowed, with only one such plan developed, several construction compliance plans were extended during the year. There were 71 construction compliance plans in effect at the end of the year. Audits of these plans showed that hometown plans have been relatively successful in achieving equal employment opportunities in the construction industry through the development of voluntary agreements among labor, management and community groups. The question of providing equal employment opportunities for women in construction received considerable attention, and a Task Force on Goals and Timetables for Women in construction held meetings on the subject. Proposed handicapped worker regulations have been prepared. During the year, 331 complaints, alleging violations of Section 503 of the Rehabilitation Act, were filed, with 97 of the complaints being resolved. A Veterans’ Affirmative Action Task Force was established to develop regulations and procedures for enforcement. Workers’ Compensation The Federal Employees’ Compensation Act was amended during the year to include benefit changes and a change in the method of providing compensation payments for 33 non-controverted traumatic cases. A total of 144,897 injuries were reported under the Act during the year, up from the 123,009 reported in 1974. New claims for compensation rose to 35,615, up from 31,025 in the previous year. At the year’s end, 36,479 cases were being compensated on the periodic payment rolls, up from 33,244 in 1974. Benefits paid under the Federal Employees’ Compensation Act amounted to $367,543,573, or 35.8 percent more than the previous year. New injuries reported during the year under the Longshoremen’s and Harbor Workers’ Compensation Act and its various extensions increased to 198,336, up from 181,525 in 1974. Lost-time injuries increased from 41,485 in 1974 to 46,741 in 1975. These continue to reflect changes brought about by 1972 amendments to the Act. The amendments extended coverage to workers performing maritime work at land installations adjoining and used in connection with maritime activities. During 1975, 76,435, or 51 percent, of maritime injuries reported were covered by the extension of the Act to include shoreside areas. Maximum benefits increased under the Longshore Act on October 1,1974, from $210.54 per week to $261.00 per week, the latter representing 175 percent of the national average weekly wage applicable for this period. A total of 31,690 black lung claims were reported under the Federal Coal Mine Health and Safety Act (Black Lung Program). Benefits paid under this program amounted to $5,890,557, of which $1,382,230 was for medical benefits. Title IV of the Act requires the Secretary of Labor to determine “responsible” coal mine operators, who will be liable for payments to disabled coal miners and their survivors. These payments by responsible operators began January 1,1974. Operators are required to guarantee benefit payments by obtaining an approved amendment endorsement to their insurance policy with a private carrier or State agency, or by self-insuring with the Department of Labor. Where no responsible operator can be identified, the Department will assume responsibility for payment of benefits. Farm Labor Contractor Registration Act (Public Law 93-518, as amended, requires the Secretary of Labor to report on provisions of this Act in the Annual Report of the Secretary.) The Farm Labor Contractor Registration Act (FLCRA) of 1963 was substantially amended effective December 7,1974. The Amendments expanded coverage by including under one Act intrastate contractors and some employees of farmers and growers. They prohibited the knowing employment of illegal aliens by farm labor contractors and made it illegal to engage the services of an unregistered contractor. Insurance 34 requirements were strengthened and safety and health provisions for housing included. For the first time, civil penalties up to $1,000 per violation were added to the Act. To carry out ESA’s new responsibilities, interim amendments were published on February 11,1975, and a comprehensive revision of the regulations will be published for comment early next year. Updated enforcement procedures were developed specifically for this program, and all wage-hour compliance officers have received training on the amended law. The investigation report form has been completely revised to provide more detailed information on the characteristics of the employer and the nature of the violations disclosed. The compilation of statistics will be computerized to enable more comprehensive analysis and fuller reporting of investigative findings. ESA, the Manpower Administration, and the Occupational Safety and Health Administration have established procedures to carry out their respective responsibilities in administering the Act. These include inspecting housing facilities owned or controlled by farm labor contractors and distributing informational materials through all local State employment service offices. Such procedures also provide for timely referral of all complaints received by Employment Service (ES) offices to ESA for investigation. Under established procedures, ES offices do not service unregistered crew leaders. Public information materials, including posters and nontechnical pamphlets, have been prepared and distributed. Department of Labor officials have met with representatives of the principal national associations representing growers and farm labor contractors to discuss the amendments to the Act and speakers have been provided to address meetings of state and local organizations. In addition, the ESA Office of Information has distributed eight recorded radio spots to more than 2,000 radio stations around the country, in both English and Spanish. Two television spots, one English and one Spanish, have been produced. The extensive use of radio and television materials in most agricultural regions has been verified by sets of reply cards and public service vouchers from various radio and television stations. News releases, fact sheets, publications and a Manpower magazine article by an ESA economist have also been distributed. A total of 241 complaints were received during the fiscal year. A total of 116 complaint investigations were completed during the year, and violations of one or more provisions of the Act were disclosed in 89 percent. Of the 46 complaints received from State ES offices during the fourth quarter of the year, investigations disclosed 44 to involve violations. Section 4 of the Farm Labor Contractor Registration Act 35 provides for the certification of farm labor contractors and for issuing identification cards to all full-time or regular employees of certified contractors. During the year, a total of 3,125 applications for contractor certificates or employee identification cards were received. Employee identification cards were issued to 353 employees and contractor certificates granted to 2,159 contractors whose migrant employment was estimated at 78,000. Certification activity was more than double the 1,068 certificates and 146 identification cards issued during the previous year. In the San Francisco Region, 86 percent of the applications for registration were from contractors who had not registered before. A total of 910 compliance actions were completed and technical assistance was provided in an additional 249 cases. About half of the actions were made subsequent to the effective date of the Amendments (December 7,1974). Of the 910 actions, over three-fourths (718) were full investigations and 105 follow-up investigations, and 87 were conciliation or other types of compliance contacts; 716 involved farm labor contractors, and 194 involved full-time or regular employees of farm labor contractors. Geographically, 418 of the investigations were made in the Atlanta Region, 194 in the Chicago Region and 144 in the Philadelphia Region. A total of 20,443 migrants were employed by the contractors at the time of their investigations, an average of about 29 workers per contractor. Full compliance with the amended Farm Labor Contractor Registration Act was disclosed in only about eight percent of the investigations made during the second half of the fiscal year, as contrasted with 19 percent during the first half of the year. Violation of insurance provisions, which were disclosed in about 12 percent of the investigations during the first half of the year, increased to 41 percent in the second half. The higher level of non-compliance reflects the impact of the new amendments. Two certificates were revoked, and an applicant was refused one during the year by the wage and hour administrator. In addition, 22 civil actions were filed against farm labor contractors and growers, 11 criminal actions were recommended to the Justice Department, and 133 illegal aliens (involving 15 farm labor contractors) were found employed. 36 Occupational Safety and Health Administration During the 1975 fiscal year, the Occupational Safety and Health Administration (OSHA) improved its inspection procedures, set new health and safety standards, and improved its Federal enforcement program. In addition to its new activities, OSHA continued its training programs and State assistance grants in an effort to improve working conditions for all Americans. By combining government enforcement with voluntary compliance, and national standards with localized programs, OSHA has worked to fulfill its obligation, as stated in the law which created it, “to assure so far as possible every working man and woman in the Nation safe and healthful working conditions.. Enforcement and Compliance OSHA placed increased emphasis on improving the quality of inspections, while increasing their number slightly over the previous year. This was accomplished by developing a more knowledgeable and experienced field force and establishing a responsive dialogue between this group and 37 the National Office in handling standards interpretations and program directives. OSHA inspected 80,949 workplaces to obtain compliance with requirements of the Occupational Safety and Health Act during the fiscal year. As a result of these inspections, 318,792 violations of the Act, affecting 6,173,255 employees, were cited. Penalties totalling $8,245,496 were proposed. In addition, a new Field Performance Evaluation System was inaugurated. This system includes monitoring each region’s performance and programming inspections according to the region’s injury and illness rate and the worker population of its various industries. Nineteen area office monitoring visits were made under this system during the year. Standards Development Of major importance to OSHA during the fiscal year was a shift in the direction of its standards development. Instead of revising original standards, there was more emphasis on new areas of occupational safety and health. The most publicized standard promulgated during the year dealt with exposure to vinyl chloride, a chemical which has been linked to a rare form of liver cancer. The vinyl chloride standard received immediate legal challenge from industry. However, the U.S. Court of Appeals for the Second Circuit unanimously upheld the standard, noting that the standards development process is essentially legislative in character and that the Secretary of Labor, in exercising his responsibility under the Act, may set standards where scientific knowledge is not entirely conclusive. New research into the toxic effects of inorganic arsenic increased concern over its carcinogenic potential, and studies strongly implicated it as a cause of occupational cancer. A proposal was published which provided for sharply reduced environmental limits as well as for medical surveillance, environmental monitoring, recordkeeping, respiratory protection, methods for compliance, and training. A proposal on noise as an occupational hazard created considerable controversy. Industry, labor and other interested parties provided OSHA with substantial data and informal opinion. The issues of feasibility and an effective safe level were key areas of concern. Hearings on the proposed noise exposure standard were being held at the close of the fiscal year. A joint project was begun the previous year with the National Institute for Occupational Safety and Health to improve the existing health standards for nearly 400 toxic substances. The first standards resulting from this project were proposed in May 1975. The project will continue at least two more years until standards for all substances are completed. Other standards activity during the year included a proposal 38 dealing with housing furnished as a condition of employment and promulgation of final regulations covering roll-over protective structures for agricultural tractors, specialized work conditions in the telecommunications industry, and the safe use of industrial slings. Training and Education On-site consultations became a significant addition to OSHA’s effort to encourage employers to comply voluntarily with the requirements of the Act during 1975. An amendment to the legislation for the Department of Labor’s appropriation for the year authorized on-site consultations without citations or penalties in States where the program for occupational safety and health is administered by OSHA. The consultation is performed by the States, under contract to OSHA, with State personnel. Through this program, hazardous conditions can be identified and corrective measures taken without relying on OSHA’s enforcement resources. OSHA’s training and educational efforts for Federal and State compliance officers continued to stress preparing them for fair and competent enforcement. Educating employers and employees in recognizing, avoiding and preventing unsafe and unhealthful working conditions constituted another facet of the program. The OSHA Training Institute in Rosemont, Illinois, instructed some 870 trainees from OSHA and 650 from the States during the year. Increased efforts on behalf of Federal agency employees resulted in the training of some 450 Federal safety and health staff at the Institute and the development, under contract, of seven specialized courses for Federal agency personnel. Private sector training stressed existing safety and health educational systems that are responsive to local needs. Over 122,000 employers and employees were trained under OSHA auspices during the year. The American Association of Community and Junior Colleges was awarded $900,000 to conduct training through 20 two-year colleges throughout the Nation. Training was also provided by the Building and Construction Trades Department, AFL-CIO; Pennsylvania State University; University of Wisconsin; National Fire Protection Association, and American Industrial Hygiene Association through five university industrial hygiene centers. An integral part of OSHA’s training and education program is developing and providing instructional materials for employers, employees and their representatives. One such package of materials, “Principles and Practices of Occupational Safety and Health—a Programmed Instruction Course,” was designed as a self-teaching course for first-line supervisors. It contains 14 lessons and an administrator’s manual. Another 39 training aid is “Occupational Safety and Health Administration Training Guidelines,’’ which helps employers identify OSHA standards pertaining to training and provides a framework for establishing acceptable training programs. OSHA’s training programs also include evaluating effectiveness. Under contract with OSHA, the American Institute for Research developed test instruments to measure the degree of learning in three Institute courses. Southwest Research Institute investigated the baseline knowledge of a sample group of employers and employees. Behavior Science Corporation developed a system for determining minimal levels of safety and health knowledge for satisfactory performance by supervisory personnel in the construction industry. Two guides were, prepared for evaluation of OSHA-sponsored training and curricula. Federal Agency Programs Executive Order 11807, issued in fiscal 1975, called for safer and more healthful workplaces for Federal employees. It established a clear line of responsibility for the application of the Act in the Federal Government. Regulations were published detailing the manner in which Federal departments and agencies are to implement the requirements of Executive Order 11807. The President also issued a memorandum to the head of each Federal department and agency directing a greater effort in promoting occupational safety and health programs. The Federal occupational safety and health program received increased attention from OSHA as well as from the heads of the various departments and agencies. Program evaluative reviews were made by OSHA for 76 departments and agencies, and 155 consultative/advisory visits were made to provide program assistance. In addition, OSHA processed 190 complaints alleging unsafe or unhealthful working conditions in Federal workplaces, and a program was initiated to report serious accidents. State Programs A fundamental aim of the Act is to encourage States to assume responsibility for administering and enforcing their own safety and health programs. States desiring to undertake this responsibility may submit a plan to the Department of Labor for approval. Such plans must, however, be at least as effective as that of the Federal OSHA. After approval, all aspects of a State program are monitored to ensure that it remains at least as effective as the Federal program. Data are collected pertaining to commitments within the plan for enforcement of standards, training of employees and collection of injury and illness statistics. Wherever possible, evaluation of State performance is made by comparison with comparable Federal performance. 40 During the first half of the 1975 fiscal year, there were 26 approved State plans, but withdrawals reduced the number to 22 by year’s end. The inability of a State to pass legislation necessary to establish an occupational safety and health program and the lack of public support within the State usually caused the withdrawals. To some extent, cost to the State of operating such a program also was a factor in withdrawals. Sixteen States with pending plans were notified of additional requirements necessary before approval could be granted. Rejection proceedings began in connection with two other plans. OSHA awarded grants totaling $27,178,829 to States for administering their programs. State programs funded by these grants supplemented the Federal enforcement program with over 1800 State compliance personnel. 41 Policy, Evaluation and Research During the 1975 fiscal year, the Office of Policy, Evaluation and Research carried out a broad program in planning and developing policy for the Department, participating in developing legislative initiatives, and stimulating and coordinating evaluation and research. The Office of Policy Development advised the Secretary’s Office on subjects such as improvements in unemployment insurance, the relationship between work and education, the labor market impact of national health insurance proposals, the role of manpower programs in the recession, the Department’s regulatory programs, and improvements in workers’ compensation programs. The Office of Planning and Program Analysis played a major role in coordinating the Department’s internal planning efforts. The Office provided the necessary staff support to the Department’s Program and Budget Review Committee to assure an intensive and objective review of major policy issues and budget proposals submitted for consideration by the Department’s program agencies. The Office also provided analytical staff support to the Secretary and Under Secretary in establishing major departmental management objectives. The Office of Research and Evaluation planned and coordinated agency research and evaluation activities throughout the Department. Strengthened by creation of the Research Clearinghouse, this office played an important role in maintaining the quality of departmental program evaluation activities. Composed principally of economists who provide technical assistance to agency evaluation offices, it performed scientific analyses, largely program evaluations, without substantial assistance from outside contractors. The Office provided substantial assistance to the Manpower Administration in developing a series of evaluation studies of programs underthe Comprehensive Employment and Training Act. The Office also completed in-house evaluation studies of the Work Incentive Program, the Office of Federal Contract Compliance and the Work Experience and Career Exploration Programs. The Office of the Assistant Secretary sponsored two major conferences to discuss the methodology and findings of studies designed to evaluate the impact of the Office of Federal Contract Compliance and occupational safety and health programs. Objectives, relative priorities, the adequacy of present methodology, and availability of data sources were major areas of discussion. 43 Bureau of Labor Statistics The economic statistics of the Bureau of Labor Statistics (BLS) were under close scrutiny for signs of change in the economic performance of the Nation during the 1975 fiscal year. In May, the unemployment rate reached its highest level—9.2 percent—since 1941, but it began to recede in June. Employment rose to an alltime high in the Fall and then fell sharply. Employment began to increase again in the Spring. Productivity declined in the first two quarters of the fiscal year, was unchanged in the third, but rose in the fourth. Double-digit inflation, as measured by the Consumer Price Index (CPI), prevailed throughout much of the year but slowed down in the second half to below a 10 percent annual rate. Increased attention to BLS statistics led to a closer examination of many series and methods and to a great deal of analytical work by the staff. The seasonal adjustment method was reexamined, and a study of alternate methods continues. The amount of monthly pricing in the CPI was expanded. New measures of wage-rate changes were published. A new and improved diffusion index, showing the percent of industries 45 with employment gains, was developed. Other major programs advanced. Partial results from portions of the Consumer Expenditure Survey were released. This was the first survey of spending and earnings of American families in 12 years. Other steps in the revision of the Consumer Price Index, due to be completed in 1977, were accomplished. The Point of Purchase Survey was completed, and the new item and outlet sample was selected. As a part of the Bureau’s effort to improve the labor force estimates for local areas, a study of the statistical records from Unemployment Insurance systems of individual States was carried out. Data collection began for the Employment Cost Index, which will provide an economy-wide measure of changes in total compensation when fully completed. An expanded data base and computational system improved productivity and cost measures, making the results more reliable and comprehensive. Several studies on women were published as a contribution to International Women’s Year, and a chartbook, U.S. Working Women, was prepared. The Monthly Labor Review Reader was published as an anthology to be used during the Nation’s Bicentennial. It includes 55 Monthly Labor Review articles on employment, unemployment, labor force, prices, productivity, wages, collective bargaining, and the future of work. 46 Current Employment Analysis The deterioration in the U. S. employment situation, which began in the second half of 1974 and worsened in early 1975, intensified demands on the Bureau of Labor Statistics by policymakers and others for analysis and interpretation of current employment trends. In response to the increased level of interest, the scope of analysis efforts was vastly expanded. Much of the Bureau’s effort was focused on assessing the nature and relative impact of increased levels of joblessness on demographic, occupational, geographic and other groups in the economy. The Bureau completed and published two special studies on the extent and impact of unemployment and developed plans to conduct a new study of methods and intensity of job search on the part of the unemployed. Recent trends in unemployment were analyzed in terms of proportion attributable to job loss and shares accounted for by other factors, as well as in terms of impact on various labor force groups, including household heads. These studies assisted in understanding the nature of the recession and, consequently, in the foundation of remedial programs. New data series, such as seasonally-adjusted unemployment rates for detailed industries, were also introduced. Toward the end of the year concern over the current seasonal adjustment procedures led to a thorough reexamination of seasonal adjustment. This study, which is continuing, laid the groundwork for a major effort to seek alternative seasonal adjustment methods. Research continued to develop better estimates and insights into labor market underutilization and the adequacy of worker earnings. One report focused on the problems of measuring unemployment, including a discussion of the special problems involved in counting persons with employment-related hardship (including discouraged, secondary and subemployed workers) and an evaluation of whether these groups should be added to the jobless count. Another report developed several alternative measures of underutilization in terms of hours lost. A third examined the not-in-labor-force group as a labor reserve. Studies were also published examining trends and differences in earnings among demographic and economic groups, including union and nonunion workers and household heads. A special union-nonunion earnings differential study used the Current Population Survey (CPS) micro data base. Contributions to International Women’s Year included a chartbook and several articles focusing on the current experience and trends in the status of working women. The Bureau also continued its program of analyses and reports on the employment status of minority groups. The Bureau published a Directory of Data Sources on Racial and Ethnic Minorities and completed a chapter on the labor force status of Black Americans for the annual Census Bureau report. Research continued into the economic and social implications of changing work patterns in the United States, including 4-day and other types of new work schedules. National data on beginning and ending hours of work were published for the first time. A major effort to improve the estimates of unemployment in States and local areas began with the conduct of a study of the statistical resource base in the Unemployment Insurance (Ul) records of individual States. The survey, which included all States in the continental U. S., set out to develop precise information on the methods of collection, tabulation and reporting of the Ul data and to provide information on the application of these data in total unemployment estimation procedures. The implementation of new methods of estimating unemployment in States and local areas continued, with several additional changes. The new methods, which were introduced in 1974, included the use of the CPS where possible to provide more accurate State and local data that are comparable from State to State and consistent with the national unemployment estimates. The number of States for which the survey data were used was raised from 19 in 1974 to 27 in 1975, and plans were developed to extend coverage to all States. Procedures were introduced to assure that components could be 47 summed to independently derived Statewide estimates. Estimating methodology was changed to reflect new data on long-term unemployed resulting from the extension of the period of time unemployment insurance benefits could be drawn. Consumer Price Index Revision During the year, BLS accomplished a number of the major objectives of the Consumer Price Index Revision Program. The revision program, when completed in April 1977, will result in a revised CPI for urban wage and clerical workers as well as a new index for the urban population. Revisions of the CPI have been carried out at approximately 10-year intervals to make necessary adjustments in index weights; to select new samples of areas, market basket items, and retail outlets, and to incorporate improvements in index concepts and methodology. BLS completed the selection of the new item and outlet samples from Census Bureau data collected for the Consumer Expenditure Survey and Point of Purchase Survey. These major surveys provide the basis for selection of new samples of market basket items, item weights, and retail outlets in which to price market basket items. A major test pricing program to revise the methodology used to select individual items for pricing within retail outlets was completed. The goal of the new collection methodology is to select—to the extent possible— items to be priced using probability sampling techniques within retail outlets so the resulting market basket items will be as representative as possible of the distribution of actual consumer purchases. Major efforts were devoted to preparing large scale surveys necessary to actually begin the pricing of the new samples. Substantial progress was also made in redesigning the computer system used to process and compute the revised index. The Bureau continued research work in measuring the costs of homeownership. This may lead to further conceptual and methodological improvements in the revised CPI. Prices and Living Conditions Selected data from the first-year Diary of the 1972-73 Consumer Expenditure Survey were published. Average weekly expenditures for food, personal care, gasoline and gas and electricity were published with families separated by income, family size, age of head, region and six other characteristics. BLS published a new set of price indexes for transportation of railroad freight for all rail shipments and for each of 11 selected commodity groups. The indexes have been calculated back to January 1969. The basis of pricing for fertilizer materials and refractories was converted from quotations published in trade 48 journals to transaction prices reported directly to BLS. The Wholesale Price Index sample was substantially improved for semi-conductors, woodpulp and paperboard. Publication of the index for mobile homes was initiated. Nine new 4-digit industry indexes were published, bringing to 160 the number of industries published in the mining and manufacturing sectors of the economy. Export price indexes covering 25 percent of U.S. commodity exports and imports have been released. These indexes are being published on a quarterly basis and provide the only direct measure of price trends for U.S. foreign trade. Estimates of Autumn 1974 costs of the 4-person family budgets were prepared and published in April 1975. The Autumn 1974 costs of the retired couple’s budgets were prepared for publication. The Bureau made two major improvements in the CPI. The sample of new cars priced for the index was revised and expanded to account for changes in the market, notably the increased importance of imported and small cars. The second improvement was an expansion in the amount of monthly pricing in the index. This improvement, which entails the collection of about 52,000 additional price quotes annually for selected items previously priced on a quarterly basis, is designed to increase the sensitivity of the CPI to monthly price changes. Wages and Industrial Relations Significant improvements were introduced in wage and industrial relations data. These improvements stemmed largely from the growing demands of the Federal economic community. New measures of wage-rate change were included in reports on wage developments in major collective bargaining units. The new series were made possible by completion of a sophisticated data processing system. In addition, the new data processing capability made it possible to fill requests for a number of special tabulations. Data collection began for the Employment Cost Index, designed to provide an economy-wide measure of changes in total compensation unaffected by occupational, industrial, and geographic shifts in employment. Eleven wage chronology bulletins and supplements were prepared during the year, updating previous publications by including developments under recent contract settlements. A more efficient area wage survey sample was introduced, permitting a reduction in the number of area studied from 85 to 70 and improving the representation of all 263 survey areas within the contiguous 48 States. BLS continued to provide ESA with survey results which are used in administering the Service Contract Act. BLS conducted about 105 area surveys under this arrangement. 49 In addition, tabulations on a pilot study of formal rate ranges in five survey areas were provided to ESA. BLS published for the first time in many years detailed reports on occupational pay relationships in department stores and in union and open shop construction. As part of this construction survey, tabulations of data by race and Spanish surname in the occupations studied were provided to ESA. A pilot study in construction began to test the feasibility of collecting the data by mail questionaire instead of personal visit in this industry. The first industry wage survey report to incorporate regression techniques—occupational pay in men’s suit and coat manufacturing—was issued. A new probability sample of cities in the union wage studies, which will be implemented in fiscal year 1976, was developed. For the first time in about 15 years, Monthly Labor Review articles for the five union wage surveys were published. A “Guide to the Printing Industry” was incorporated in the bulletin on union wages and hours in the printing industry. The Bureau took action on General Accounting Office recommendations to improve the annual survey of professional, administrative, technical and clerical pay (PATC). It developed a more comprehensive training program, instituted a new quality measurement program, and conducted additional research to review and improve occupational 50 definitions used in the survey. BLS also provided technical support to the U. S. Civil Service Commission in a research project to improve the industrial coverage of the survey in 1976. The Bureau studied the feasibility of reporting cash nonproduction bonus data in the PATC survey. Special efforts were directed toward completing municipal government wage surveys for all cities of 500,000 population or more. Supplemental reports were introduced and used to speed up publication of results whenever possible. A comprehensive analysis of health benefit plans, made in cooperation with the Social Security Administration, was updated to reflect January 1975 data. Employer and employee contribution-rate data were collected for the first time. The 1974 edition of the Digest of Selected Health and Insurance Plans, and Supplement I, were issued. Three articles, two on multi-employer pension plans and one on the number of workers covered under negotiated health and insurance and pension plans, were published in the Monthly Labor Review. Extensive data were provided on pension plans for the executive and legislative consideration of pension legislation. Data on continuing health benefits for laid-off workers were also furnished. Reports on the compensation structure of employees of each of the 50 States were issued for the first time, and the fourth bulletin detailing the annual earnings and employment patterns of employees was published. Extensive statistics relating to the earnings and hours of work of employees in 23 low-paying industries were provided to ESA to appraise existing and proposed changes to the provisions of the Fair Labor Standard Act (FLSA). A massive and complex program of studies of industries and occupations exempt from the minimum wage or overtime pay provisions of the FLSA was planned with ESA and launched by the Bureau. The studies will examine topics such as employee earnings and hours of work, patterns of seasonality, and potential costs to employers should exemptions be removed for the exempt industries and occupations studied. Expansion of work in the public sector continued with the release of a study of negotiated grievance and arbitration procedures in State and local government and a study analyzing more than 100 contract characteristics. The latter study has been put on an annual cycle, with up-to-date findings to be available to the negotiating parties on a quarterly basis. The 1973 edition of the Directory of National Unions and Employee Associations was the first to be issued as a loose-leaf publication, thereby permitting periodic revisions of the entire listing section. The 1975 edition, now underway, will include a major section on the structure of union finances. In addition to the annual bulletin on strikes in the U.S., special reports were published for the railroad and construction industries and for all levels of government. The Bureau’s analysis of collective bargaining agreements in the private sector continued with the completion of a study of the treatment of safety and health issues before and after the passage of the Occupational Safety and Health Act of 1970 and two studies of characteristics and provisions in the construction industry. The redesign of the Bureau's industrial relations data processing system is on schedule and should produce timelier work stoppage and collective bargaining agreement data than has hitherto been possible. Productivity and Technology BLS continued to strengthen and expand its program of research in productivity and technology. Two productivity measures for industries— gasoline stations and hotels and motels—were added to the list for which detailed productivity studies are published. The new series on Federal government productivity was refined and expanded, and indexes for the 1967-74 fiscal years were completed for 16 functional groupings and the total sample. The productivity and cost measures calculated for the private economy and the farm and nonfarm sectors were 51 improved by the introduction of an expanded data base and computational system. The new system incorporates several refinements in both the underlying data and methods which make the results more reliable and comprehensive. Reports appraising the impact of major technological changes on productivity and occupations over the next 5 to 10 years were published for textile mill products, lumber and wood products, tires and tubes, aluminum, banking and health services. These reports, the first of a series, update and expand earlier research and were undertaken as part of the Bureau’s ongoing effort to assess the manpower implications of new technology. A report on labor and material requirements for apartment construction was published to measure the impact of construction activity on labor and material requirements. Estimates were also prepared on the impact of Bicentennial-related construction activity on employment and occupations in Washington, D.C. Comparative studies of productivity, compensation and costs were expanded for manufacturing in the United States and 11 major industrial countries. Measures were introduced for relative changes based on the most recent quarter compared with the same quarter of the previous year. Comparisons of labor force, employment and unemployment levels were expanded by the 52 addition of monthly and quarterly estimates of unemployment rates in the major countries. Finally, the Bureau published a wide-ranging chartbook, Productivity: an International Perspective, in response to a request by the National Commission on Productivity and Work Quality. Economic Growth Division activities continued to develop along two related program lines: long-term projections of manpower requirements in all sectors of the economy and studies of the manpower requirements currently generated by selected government programs. A comprehensive study of industry employment requirements by major sector of the economy in 1980 and 1985 was completed and published. Revisions were soon made analyzing the effects on these projections of both the recent economic decline and current energy problems and policies. Several scenarios showing different rates of economic recovery to 1980 and alternative energy policies are being studied. Several projects on current Federal manpower requirements were completed in this period. The “Manpower Factbook,” providing a methodology to assist agencies in determining their own manpower requirements, was published. A study of the employment requirements generated by medical programs of the Veterans Administration, institutional manpower training grants, National Institute of Health grants, and National Aeronautics and Space Administration outlays was also published. In addition, estimates were completed of the manpower requirements of Bicentennial activities in the Washington area as a contribution to a study by the Mid-Atlantic Regional Office undertaken for the District of Columbia government. A 2-year study was begun to determine the job requirements associated with urban transit programs in the Boston area. Occupational Safety and Health The Office of Occupational Safety and Health Statistics, in its fourth year of operation, completed its recordkeeping revision, issued 1973 survey data, and expanded its State grant program. It also carried out special statistical projects. Revised recordkeeping forms were introduced on January 1, 1975. These forms are used by employers to record work-related injuries and illnesses. Revisions were needed to give more precise measures of the seriousness of cases and to make the forms easier for employers to understand. A revised Recordkeeping Requirements Booklet, which contains the revised forms and instructions for using them, was mailed to nearly 1 million employers in November and December 1974. A revision of Report 412, What Every Employer Needs to Know About OSHA Recordkeeping, was completed. An audio aid, containing a tape cassette and other materials, for self-instruction in OSHA recordkeeping, was prepared and offered for sale by the National Audiovisual Center. A contract was negotiated to produce a film to instruct employers about how to keep OSHA injury and illness records. Two different annual surveys were analyzed: Bulletin 1830, Occupational Injuries and Illnesses by Industry, 1972, was published in October 1974. Estimates were also prepared from data collected in the annual survey for 1973. The Quality Measurement Survey (QMS) for 1973 was a major activity during the first quarter of the year. Plans are now underway for the 1974 QMS, to be conducted in the Fall of 1975. These surveys are conducted to validate the quality of data collected. In addition, various publications discussing the safety and health statistics program and demonstrating the use of the estimates from the annual survey were published. During the year, two special studies were completed. The first, a study of safety and health provisions contained in 500 matched collective bargaining agreements, showed a slight upward trend in such provisions negotiated after passage of the Occupational Safety and Health Act. The second study was designed to assess the feasibility of obtaining necessary data from employers to examine a possible relationship between 53 workers’ length of time on job and injury incidence. Results of this study indicated that such data are not readily obtainable and that the complexity of other factors present tend to obscure a relationship. Preliminary results were received from a third study which focused on a qualitative measurement of work-injury information recorded on workers’ compensation first reports of injury. During the year, 53 State grants were processed. Of these, 22 are operating under approved 18(b) State plans. BLS contributes to the semi-annual State performance evaluation conducted by OSHA. Forty-four States are participating in the Bureau’s 1974 Quality Measurement Survey. Most of the grant funds were required to conduct the annual survey; however, about a fourth of the grant money was used for the Supplementary Data System. Twenty-five States are participating in the analysis of workers’ compensation data. Guidelines for State data requirements were revised and the grant application package updated. The system for monitoring State performance in the annual survey was computerized to provide regional and State measures. Manpower Structure, Trends Research was conducted for the biennial revision of the Occupational Outlook Handbook. Looking Ahead to a Career, a slide series presenting trends in labor force characteristics and occupational and industrial employment, became available, and several reports were issued from the occupational outlook program. In fiscal 1976, research on occupational mobility will be conducted, designed to improve information on occupational supply. Methodological research aimed at improving data generated from studies of the impact of Federal program expenditures on occupational demand and supply will continue. A report on this topic was completed in fiscal 1975, titled Research on the Effects of Federal Programs on Occupational Requirements and Supply: A Demonstration Study of the National Institutes of Health. In the BLS-MA-State cooperative Occupational Employment Statistics Survey Program, data are being collected for each cooperating State by the State employment security agency. During the year, 28 States and the District of Columbia collected data from establishments in manufacturing industries. As a part of the Bureau’s Occupational Employment Statistics program, over 40 State employment security agencies published projections of industrial and occupational manpower requirements to 1980 covering the State and most major metropolitan areas. One revised supplement to the Tomorrow’s Manpower Needs Series was published. This 54 revision, Matching Occupational Classification to Vocational Education Program Codes, allows educational planners and others to match the occupation classification used in the Bureau’s current National-State industry-occupational matrix system. A set of diffusion indexes showing the percent of industries with employment increases was developed for 172 industries and first published in December 1974. The 172-industry diffusion index is an improvement over the earlier 30-industry index. The new indexes measure a more comprehensive breadth of dispersion of economic gains and losses and are a better analytical measure of cyclical changes than the 30-industry series. 55 Office of the Solicitor New laws and amendments to existing legislation increased the variety and volume of legal services provided by the Office oftheSolicitorduringthe 1975 fiscal year. Legal services were provided for a number of major legislative proposals, and court rulings brought substantial benefits to American workers. A paralegal program, instituted by the Department as a pilot program for the Federal Government, continued to provide formal study, on-the-job training, and active participation in legal services for 19 paralegal trainees representing the various field offices and national office divisions. Considerable effort was directed toward increasing organizational efficiency through the more intensive use of word processing equipment. General Legal Services Throughout the first nine months of the fiscal year the Division of General Legal Services assisted the Solicitor as the Labor Department member of the Administrative Conference of the U.S. in formulating task force activities in connection with the intergovernmental program operations. The division also prepared, cleared and published the Department’s Disclosure Regulations (29 CFR Part 70), required by the extensive amendments to the Freedom of Information Act which became effective February 19,1975. Veterans’ Reemployment Rights Veterans’ reemployment rights provisions were recodified into Title 38, United States Code, and two significant statutory amendments were added. The Federal law was extended to give enforceable rights to employees of the States and their local subdivisions, and the application of State statutes was barred in these actions. The legislative history made it clear that only undue delay was appropriate as a time-barred defense in these cases. Litigation activity in the area of veterans’ reemployment rights continued at a high level. During the year, the Supreme Court, in Foster v. Dravo Corp., 420 U.S. 92 (1975), decided a vacation eligibility case by concluding that if a bona fide work requirement exists for accrual of vacation benefits, returning veterans must satisfy that requirement in order to receive a vacation in their year of return or the year thereafter. The issue of counting military service for the purpose of pension benefits took on increased significance during the year, with two district court decisions, Davis v. Alabama Power Co., 383 F.Supp. 880 N.D. Ala, 1974) and Smith v. Industrial Employers and Distributors Assoc., 385 F.Supp. 1281 (N.D. Calif., 1974), holding that military service must be so 57 counted, while one court of appeals decision, Litwicki v. PPG Industries, Inc., 505 F.2d 189 (C.A. 3, 1974), took the opposite view. A significant decision of first impression was rendered in Armstrong v. Baker, 394 F.Supp. 1380 (N.D. W.Va., 1975), wherein the court ruled that a disabled veteran who could not perform work in his preservice classification was entitled under the disability provision of the act to be placed in another position in a different seniority unit with accumulated seniority, notwithstanding a collective bargaining agreement which precluded transferring between seniority units with seniority intact. Another decision of first impression was rendered in Lott v. Goodyear Aerospace, Corp., 89 LRRM 3025 (N.D. Ohio, June 11,1975, not yet officially reported). Under the law, reservists cannot be discharged from employment nor denied any incident or advantage of employment solely because of his or her reserve obligation. Service Contract Act The Division provided legal services for the administration and enforcement of the Service Contract Act. It represented the Department at administrative enforcement proceedings and prepared appellate briefs for all such hearings. It also represented the Department in six non-enforcement administrative hearings. The Division prepared litigation reports, pleadings and briefs for use of the Department of Justice in both enforcement and defensive litigation of court cases arising under the Act. Among the year’s most significant decisions concerning the Service Contract Act were Industrial Crating & Packing, Inc., et al. v. Peter J. Brennan, No. C74-73T (D.C.W.D. Wash.) in which the court ruled that it had no jurisdiction to review the wage determinations of the Secretary of Labor, and United States of America v. Deluxe Cleaners and Laundry, Inc., Civil No. 74-1322 (C.A. 4) in which the Court of Appeals supported our position that the two or three-year statute of limitations provided in the Portal-to-Portal Act cannot be applied to enforcement litigation brought by the United States to recover underpayments finally found due in administrative proceedings under the Act. Consumer Credit Protection The Division continued to provide legal services necessary for the enforcement of the provisions of Title III of the Consumer Credit Protection Act relating to restrictions on garnishment. Two favorable federal circuit court decisions were rendered and two others that were part favorable and part unfavorable. One significant case under Title III is currently pending before the United States District Court of Arizona. In Brennan v. The Kroger Co., 513F.2d961 (C.A. 7,1975) 58 the Seventh Circuit held the discharge of an employee unlawful under Section 304(a) of the Act where the discharge resulted from the mere service on an employer of a second garnishment order which did not, because of the pendency of a superior lien, require the withholding of any of the employee’s earnings. In two cases consolidated for purposes of appeal the Ninth Circuit held that Section 306 provides authority for the Secretary to maintain civil actions to enforce both Sections 303 and 304. On the merits of those cases, however, the Court followed the Fifth Circuit’s conclusion that pre-Act garnishment could be counted for purposes of the discharge provisions of the Act. Hodgson v. Consolidated Freightways, Inc., and Hodgson v. Giant Snacks Co., 503 F.2d 797 (C.A. 9, 1974). In one district court case a pre-Act IRS levy was counted as a garnishment under Section 304. In Stewart v. The Travelers Corporation, 503 F.2d108 (C.A. 9,1974), the Ninth Circuit held that Title III includes a private right of action. This division rendered substantial assistance in the legal preparation of Dunlop v. First National Bank of Arizona, (USDC Dist. of Ariz., Civ. No. 72-118 PHX WPC). Davis-Bacon and Related Acts In North Georgia Building & Construction Trades Council v. U.S. Department of Transportation, et al. (N.D. Ga., Civil Action No. C75-955A, decided June 16,1975, not yet reported), the Court held inviolate the authority of the Secretary of Labor, as against the contracting agency, to finally interpret and apply his own wage determinations issued under the Act. In Fry Brothers Corp. v. Department of Housing and Urban Development, et al. (D. N.Mex., Civil Action No. 74-331, decided Feb. 3,1975, not yet reported), plaintiff sought $3,000,000 in damages allegedly resulting from wrongful withholding of approximately $72,000. The complaint was dismissed without prejudice on the basis that it appeared that the court lacked jurisdiction over the action at that time because administrative remedies had not been exhausted. In response to plaintiff’s allegation that it relied on an agreement with the Department of Housing and Urban Development as to classification of workers, the court further stated that it was clear from the statute and the regulations that the authority to classify workers lies with the Labor Department, and not with the contracting agency. Child Labor Provisions The child labor provisions of the Fair Labor Standards Act (FLSA) were amended, effective May 1,1974, to provide civil penalties for violations, to provide by regulation that employers obtain proof of age of young 59 workers they employ, and to restrict the permissible employment of children in agriculture. The Act as amended prohibits the employment in agriculture outside of school hours of any child under 12 years of age unless employed by his parent on his parent’s farm or with consent of his parent on farms exempt from the monetary provisions of the Act under the 500 man-day test. In a case challenging the constitutionality of this amendment, Kelly v. Brennan, 74 CCH Labor Cases TT33,101 (D. Oregon, not yet officially reported) a preliminary restraining order issued June 22, 1974, enjoined the Secretary of Labor from enforcing provisions of Section 12 of the FLSA. On September 13,1974, the three-judge Federal Court in Oregon ruled in favor of the Secretary (76 CCH Labor Cases 1)33,222, not yet officially reported), upholding the constitutionality of the child labor provisions of the Act. The Division has prepared comments on a variety of proposed legislation introduced in Congress which would have amended the provisions which established the 12 year minimum age for employment in agriculture. The 1974 Amendments also provide for imposing civil money penalties for violation of the child labor provision of the Act and the regulations issued thereunder. The Division prepared new regulations under amended sections of the Act. The Division handled and argued the appeal in Brennan v. Correa Jr., d/b/a Ricardo’s Mexican Enterprises of Omaha, 513 F.2d 161 (C.A. 8,1975), which by Per Curiam decision reversed and remanded the lower court decision, as requested by the Secretary of Labor. Farm Labor Contractor Act As a result of the 1974 amendments to the Farm Labor Contractor Registration Act, which became effective on December 7,1974, this division has substantially increased its legal services. Currently, the division is drafting purposed regulations implementing the 1974 amendments, aiding the administrator in the development of field operations, and coordinating the enforcement activities of the regional offices. The division also continued to provide necessary assistance to the regions, including participation in 60 injunctive actions and 2 defensive actions. As a direct result of these enforcement actions, the number of contractors registering this year has substantially increased. International Labor In the area of international labor affairs and tariffs and foreign trade, the division prepared or reviewed the Department’s reports on proposals for legislation in the tariffs and trade area. Attorneys from this division accompanied the Department’s witnesses 60 giving Congressional testimony, and an attorney from the division participated in interagency groups established to implement several provisions of the Trade Act of 1974. With the passage of the Trade Act, statutory investigations in trade adjustment assistance cases are made by the Department of Labor (instead of the U.S. International Trade Commission), effective April 3, 1975. This division prepared the implementing regulations under the Trade Act and reviews each file in terms of whether it contains “substantial evidence” to support the decision of the certifying officer. Attorneys from this division represented the Department on the inter-agency legal committee formed to represent the Government in the case Consumers Union v. Committee for the Implementation of Textile Agreements (U.S.D.C. 74-968) involving issues of the President’s authority to negotiate and enter into trade agreements concerning textiles as provided for in section 204 of the Agricultural Act of 1956. The division participated in and prepared draft Executive Branch position letters concerning a number of conventions and recommendations previously adopted by the representatives of member nations of the International Labor Organization (ILO). Additional material was prepared in connection with certain ILO law and practice reports required to be submitted to the ILO by member countries. Three attorneys from this division were members of the U.S. Delegation to the 60th Session of the International Labor Conference in Geneva, Switzerland. Legislation, Legal Counsel The Division of Legislation and Legal Counsel performed numerous legal and drafting services for the Administration’s legislative proposals. These included the emergency jobs and unemployment assistance program, pension reform, permanent changes in the unemployment insurance system, trade reform, on-site consultation under the Occupational Safety and Health Act, health maintenance programs, amendments to immigration certification provisions, and amendments to the Farm Labor Contractor Registration Act. In addition, the division provided special assistance in implementing the provisions of the Freedom of Information Act and the Privacy Act of 1974. The division was responsible for assisting in preparing reports to the Congress and the Office of Management and Budget on a wide variety of legislation. It also functioned as legal counsel to the Solicitor and to the Assistant Secretary for Policy, Evaluation and Research. Extensive assistance and guidance were rendered to Labor Department officials in connection with their appearances before committees of the Congress. 61 Occupational Safety and Health The Standards Section of the Division of Occupational Safety and Health assisted OSHA’s Office of Standards Development in preparing comprehensive new standards for vinyl chloride, mechanical power presses, industrial slings, telecommunicationsand roll-over protective structures for agricultural equipment (ROPS). The division also provided legal services in hearings on proposed standards for arsenic, noise, temporary labor camps, conveyors and 4,4'methylene bis (2-chloroaniline) (MOCA) as well as ROPS and vinyl chloride. Proposed standards reviewed by the Division and published in fiscal year 1975 included noise, temporary labor camps, arsenic, MOCA and the revocation of the ground fault circuit protection requirement. The Standards Completion Project was initiated with the publications of proposed standards for six ketones. The division provided assistance and guidance to the various Regional Offices of the Solicitor in the handling of adjudicatory proceedings. It also has represented the Secretary in approximately 100 contested cases arising in the District of Columbia. Attorneys have prepared approximately 115 petitions for review and submitted approximately 150 briefs to the Occupational Safety and Health Review Commission. The issues raised in these petitions and briefs include tests for employee exposure, employer 62 implementation of feasible engineering controls to limit employee dust exposure, interpretation of standards, classification of violations, and procedures before and jurisdiction of the review commission. Attorneys with the division have assisted in preparing draft revisions of OSHA’s Field Operations Manual, ranging from the conduct of inspections to OSHA applicability in the maritime area. The attorneys have also provided OSHA with assistance concerning Federal employee safety programs. Since the signing of a memorandum of understanding with the Department of Justice in March 1975, the Appellate Section has had principal responsibility for the preparation and filing of briefs and presentation of oral arguments in the Courts of Appeals. Appellate litigation has continued to increase over the past fiscal year, with over 30 decisions issued by the courts and over 40 additional cases still pending. Major decisions during the past fiscal year have upheld the constitutionality of various aspects of the Act and have sustained major rulemaking activities of the Secretary, such as his standard regulating employee exposure to vinyl chloride. Legal activities in the State plan area shifted from the primary activity of reviewing and writing decisions on submitted plans to reviewing and evaluating comments on developmental phases of approved plans, such as State enacted legislation, procedures and agreements. One new plan (Arizona) was approved, and four (New Jersey, New York, Illinois and Wisconsin) were withdrawn after approval, leaving 22 approved plans at the end of fiscal ’75. Review of submitted plans led to initiation of formal rejection proceedings for the New Mexico and Virginia plans. The legality of approving “developmental plans,’’ those that required further legislation or other action to meet OSHA requirements, was upheld in Robinson Pipe Cleaning Co. v. Department of Labor & Industry (D. N.J., 1974, Civil Action No. 74-228). Secretary of Labor regulations for approval of State plans were found reasonable in AFL-CIO v. Brennan, (D. D.C., 1975, Civil Action No. 74-406). Procedures and conditions for coordinating State and Federal enforcement, variance granting, recordkeeping, and posting activities were developed and adopted. Under the coordinated enforcement jorocedures, operational agreements were signed with eight States: Utah, Kentucky, Tennessee, Oregon, North Carolina, South Carolina, Vermont and Colorado, under which the State has primary responsibility for enforcement of standards under its plan. Formal procedures for withdrawal of approval of State plans failing to live up to their commitments were developed and adopted, as well as procedures for a Federal on-site consultation program utilizing State personnel. Manpower Legal Services The four primary activities of the Manpower Legal Services Division during the past year have been: (1) assisting the Manpower Administration (MA) in implementing new legislation, (2) assisting MA in developing, for the first time, comprehensive sets of regulations for the operation of its many programs, (3) providing an ever increasing amount of legal advice on a day-to-day basis, and (4) representing the Department’s interests in manpower-related litigation. Substantial legislation was enacted relating to training and public service employment programs and unemployment compensation programs. In both these areas, it was critical to get rapid implementation, as the purpose of the legislation was to deal quickly with the worsening national economic situation. The division assisted the Manpower Administration in interpreting the legislation and developing the necessary guidelines to implement it. The division helped the Manpower Administration complete a comprehensive set of regulations for the Comprehensive Employment and Training Act of 1973, as amended. The division provided an increased amount of day-to-day legal service to the Manpower 63 Administration on legal problems arising under manpower statutes. It worked with the Manpower Administration and the Department of Health, Education, and Welfare in developing improved regulations for the Work Incentive Program, and has continued to represent the Secretary in a growing amount of litigation involving tine Department’s manpower programs. It achieved significant victories in cases of first impression under CETA and cases pertaining to the interstate clearance system’s procedures for securing domestic and seasonal farmworkers prior to the certification of temporary foreign workers. Plan Benefits Security The Plan Benefits Security Division (PBSD) was first, organized as a Solicitor’s Office task force during legislative consideration of the Employee Retirement Income Security Act (ERISA). It became a division of the Solicitor’s Office in December 1974, when the first funds for implementation of the act were appropriated by Congress. This division published regulations and interpretive bulletins dealing with the fiduciary responsibilities of employee benefit plan funds and parties in interest, as well as a procedure for persons requesting exemptions from the act’s prohibited transaction provisions. It issued interim exemptions from the prohibited transaction provisions applicable to certain transactions between employee benefit plans and certain broker-dealers, reporting dealers and banks. Proposed exemptions from the prohibited transaction provisions applicable to certain transactions commonly engaged in by multi-employer plans were issued. During the year, this division .represented the Secretary in connection with proceedings before the U.S. Parole Board to consider applications of persons for exemptions from the criminal conviction prohibition section of the Act and issued two sets of proposed regulations concerning the reporting and disclosure requirements of the Act. It also intervened in the first case under the authority of ERISA. Employee Benefits The Division of Employee Benefits participated in a large number of cases involving legal issues arising out of the black lung provisions of Title IV of the Federal Coal Mine Health and Safety Act of 1969, the Longshoremen’s and Harbor Workers’ Compensation Act, and the Federal Employees’ Compensation Act. On October 29, 1974, the Supreme Court summarily affirmed a decision of a three-judge district court which upheld the constitutionality of many provisions of Part C of Title IV of the Federal Coal Mine Health and Safety Act of 1969. 64 National Independent Coal Operators Assoc, v. Brennan, 372 F.Supp. 16 (D. D.C.), aff’d 95 S.Ct. 216. In a related case, Turner-Elkhorn Mining Company v. Brennan (E.D. Ky.), the three-judge court also upheld the constitutionality of several provisions of the Act, while at the same time, declaring the irrebuttable presumption contained in section 411 (c)(3), the limitation of evidence provisions set forth in section 411 (c)(4) unconstitutional. The Supreme Court, on April 28,1975, stayed the injunction which the district court had entered enjoining the Secretary from applying these provisions. The Supreme Court has scheduled plenary review of all issues for its next term. In an unanimous decision issued June 16,1975, the Supreme Court upheld the Department’s position that section 22 of the Longshoremen’s and Harbor Workers’ Compensation Act could not operate to preclude an employee from seeking additional benefits where no compensation order had been filed on his original claim even though the employer had voluntarily paid compensation. Intercounty Construction Corp. v. Walter, 95 S.Ct. 2016. This decision resolves the conflict between the favorable decision of the Court of Appeals for the District of Columbia Circuit (Intercounty Construction Corp. v. Walter, 500 F.2d 815) and the contrary view held by the Fifth Circuit in Strachan Shipping Co. v. Hollis, 460 F.2d 1180, cert, den. 409 U.S. 887. In another Longshoremen’s Act case, Edgar McCord v. Benefits Review Board, 514 F.2d 298, the Court of Appeals for the District of Columbia Circuit held that neither the Longshoremen’s Act nor Rule 15 of the Federal Rules of Appellate Procedure requires that the Benefit Review Board (a quasi-judicial body established by section 21 of the Act) be joined as a party and compelled to participate in litigation involving the propriety of its decisions. In a companion case Director, Office of Workers’ Compensation Programs v. Cephas, the Court of Appeals upheld the right of the Director to appeal decisions rendered by the Benefits Review Board. The division prepared and published regulations to implement the authority and responsibility of the Office of Workers’ Compensation Programs in administering 1974 amendments to the Federal Employees’ Compensation Act. Labor-Management Laws In Dunlop v. Bachowski, the Supreme Court issued an opinion deciding that courts have jurisdiction to entertain suits by disappointed complainants to review, on a very limited basis, the Secretary’s decision not to file suit to overturn a union election under the Labor- Management Reporting and Disclosure Act (LMRDA). The Court held that the Secretary may be required to furnish a statement of his reasons for not proceeding, but that his factual 65 findings are not subject to question through an adversary trial procedure. The Ninth Circuit Court of Appeals, in Brennan v. Silvergate District Lodge 50, International Association of Machinists, affirmed the District Court’s denial of an incumbent officer’s motion to intervene as a party-defendent for the purpose of contesting the lawsuit filed by the Secretary of Labor, and of his subsequent motion to intervene for the purpose of challenging the Secretary’s certification of the court-ordered supervised election. In Brennan v. Local 485, Electrical, Radio and Machine Workers, the Second Circuit Court of Appeals upheld a District Court decision which invalidated an election for Business Manager, upon the ground that it had been conducted in violation of the union’s constitution. There was also considerable lower court litigation activity under Title IV of the LMRDA during Fiscal 1975. In Brennan v. Local 795, Longshoremen’s Association, the Court directed termination of a trusteeship which was being unlawfully maintained by the International, and the installation of officers elected in the Local’s 1973 election. This was the first case in which Title III and IV causes of action were combined, and also the first in which the Department has obtained a court order for installation of officers whose election had been improperly set aside by the union. The union has appealed. In Hodgson v. Supermercados Pueblo, suit had been filed against the union because it failed to hold an election of officers within the time period prescribed by the Act. While the case was pending in court, the union held an unsupervised election. The Court held that this intervening unsupervised election had no effect on the court action brought by the Secretary. A contrary decision was rendered in Hodgson v. Local 1177, Laborers, where the Court held that no new supervised election was needed, as the violations present in the contested election were too remote and minor and had been corrected by the Union’s holding of its own unsupervised election. An appeal from this decision is pending. An important decision was issued under the Welfare and Pension Plans Disclosure Act, in Flowers v. Brennan, where the plaintiff, as a representative of the Teamster’s Central States Southeast Areas Pension Fund, sought to compel the Secretary to conduct a hearing for the purpose of increasing the Fund’s bond under section 13 (e) of the WPPDA, and further requested damages in the amount of $900,000, the amount allegedly lost as the result of the Secretary’s refusal to do so. The Court held that the Secretary’s decision not to hold the requested hearing constituted an exercise of discretion under the Act which was not susceptible to judicial review. 66 Administration and Management As part of its efforts to improve administrative and management functions within the Department, the Office of the Assistant Secretary for Administration and Management (OASAM) completed a major study of the Department’s automatic data processing program during the 1975 fiscal year. The study was conducted by a task force of senior managers drawn from each major user of automatic data processing (ADP) in the Department. It reviewed present utilization of ADP and evaluated future requirements. The task force also assessed current ADP technology. Recommendations were made for the Department’s future course in ADP. Among other things, the task force urged that the major users of ADP become responsible for the systems analysis, systems design, programming and operation of their own applications. It recommended that the Department develop a hardware-oriented computer center to serve as a source of supply for the computer support to run these applications. Finally, the task force recommended that a separate organization be established to formulate and monitor the Department’s ADP plans, policies and standards. When the recommendations are implemented, the Department will be in a better position to take advantage of the technology now available in ADP, while maintaining the management control necessary to insure efficiency and cost effectiveness. During the year, 448 indirect cost rates, resulting in cost savings of $1.3 million for the Department and $2.2 million to the Federal government, were negotiated and approved. Procedures on the computation of indirect cost rates for Concentrated Employment and Training Act (CETA) grants were developed. The audit staff issued 4,287 audit reports covering $3.9 billion in expended Federal funds, of which $66.2 million was questioned. Late in the year, a series of CETA seminars was started to familiarize local Manpower Administration personnel, CETA prime sponsors, interested State and local audit agencies, and interested certified public accountants with the U.S. Department of Labor Integrated CETA Audit Program. The Department began moving to its new building at Third Street and Constitution Avenue, NW., in the latter half of the year. When the relocation is completed, the Department’s national office activities will be consolidated in four buildings instead of 16 separate locations. A personnel management evaluation program to determine how effectively personnel management contributes to accomplishing agency and regional missions was developed and implemented. Major 67 recommendations are documented, transmitted to appropriate managers, and incorporated into the Department’s management system so that progress on implementing corrective action can be followed. During the year, evaluations were conducted in one region and the national office of a major agency; and an evaluation of the entire regional structure of another agency was initiated. A new competitive examination for apprenticeship and training representatives was developed with revised qualification standards. These will allow for the recruitment of more women, minorities and Vietnam-era veterans. An Executive Resources Requirements Planning System was designed, and data on characteristics of the current executive workforce as well as future requirements for executives were developed. Eleven Senior Executive Program seminars and 85 Executive Development Program seminars were conducted, the latter for employees in grades GS-13-15 in the national office and the regions. Other seminars conducted included Labor-Management Relations, Human Side of Management, Management Techniques for Supervisors and Equal Employment Opportunity Workshops. A program manual for administrative, clerical and technical programs was published and implemented in three agencies and five regions. 68 OASAM conducted several safety and health program evaluations and facility surveys. It also established new health units in seven cities, conducted special education and screening programs for high blood pressure, alcoholism, cancer, vision and glaucoma, and established a comprehensive supervisor safety and health training course. The Department participated in the White House Conference on Equal Employment Opportunity and conducted a successful Federal Women’s Week program which focused on problems confronting women and the need to improve their status. The Department also participated in meetings of the National Commission on International Women’s Year where discussion focused on the United States’ role in the World International Women’s Year Conference held in Mexico City. A full-time Spanish-speaking program coordinator was appointed, and an “action plan” was developed to find qualified Spanish-speaking persons for Departmental positions. The effectiveness of the payroll and accounting functions of the Department were improved and operating costs reduced. Agency costs for each program activity were detailed in monthly cost reports and summaries. In a number of instances, internal operating costs were reduced through more effective computer programs and improved data transmission techniques. Progress continued toward decentralizing certain accounting functions to the regional offices. Under the Regional Accounting Project, data for accounting functions, financial reports and fiscal year-end closings will be decentralized. A capability for carrying out a manpower utilization program with a goal of achieving the most effective use of the Department’s manpower resources was reoriented. Comprehensive studies are to be conducted in each of the Department’s agencies on a regular basis to aid in determining realistic staff requirements to support the annual budget submissions. On the regional level, personnel management was further decentralized to the regions and additional staff assigned. The accuracy of regional accounting records increased significantly due to the efforts of the regional financial management advisors and the Department’s improved financial management system. Implementation of management-by-objectives (MBO) in the ten regional administrative and management offices enhanced the quality of management in these organizations. Full-time training and employee development specialists were assigned to each region to expand and improve coordination of regional training and career development. Each region appointed a permanent equal employment opportunity officer to assure continuity for this vital function. 69 International Labor Passage of the Trade Act of 1974 was the most significant development affecting the wide range of Department activities in international labor during the 1975 fiscal year. The Act, signed by President Ford on January 3,1975, provides for an expanded trade adjustment assistance program to aid workers who lose their jobs because of increased imports. Principal benefits available to eligible workers include cash allowances, counseling and placement services, training programs, job search grants, and relocation allowances. A new Office of Trade Adjustment Assistance was established within the Bureau of International Labor Affairs (ILAB) to administer the adjustment assistance program. From the time the new program took effect in early April 1975 until June 30, a total of 63 petitions for adjustment assistance were received covering approximately 56,000 workers. Petitions involving 4,600 workers were certified; others covering nearly 1,400 workers were denied, and the remainder were being investigated. Earlier in the fiscal year, nearly 8,300 other workers were certified by ILAB as eligible for trade adjustment assistance under provisions of the Trade Expansion Act of 1962. The new Trade Act also gave legislative authority for work already in progress on the multilateral trade negotiations (MTN) and authorized a Generalized System of Preferences under which the U.S. would be able to grant duty free treatment to certain imports from developing countries. The Department participates in the interagency committees which are responsible for developing all aspects of international trade policy as well as for the MTN. Since the Trade Act of 1974 requires advice from organized labor on the MTN, a Labor Policy Advisory Committee was established consisting of representatives from 54 trade unions and a number of departments of the AFL-CIO. Six Labor Sector Advisory Committees covering industry and service sector groupings were also organized. The Department participated in the negotiation of bilateral agreements with 22 countries under the Arrangement Regarding International Trade in Textiles (MFA) of the General Agreement on Tariffs and Trade. The purpose of these negotiations was to bring U.S. textile bilateral agreements into conformity with the provisions of the MFA and to help protect the jobs of 2.3 million American workers in the textile and apparel industries. During the year, the Department participated in the development of general international economic policy in various interagency groups and in meetings of the Organization for Economic Cooperation and Development (OECD) on trade 71 and related matters. In the research area, ILAB inaugurated studies on the impact of foreign direct investment and technology transfer on U.S. workers, added to the number of industries in which the effect of trade policy is examined intensively, and expanded its work in the area of worker adjustment to employment dislocation due to trade. It completed a study of the impact of trade barriers in steel and an analysis of the effect of various trade negotiating packages on output and employment by industry. Through the Department of Labor International Technical Assistance Corps (DOLITAC), 24 technical aid projects were undertaken in 22 countries. Technical and cultural exchange programs in the labor and manpower fields were arranged for 1,039 foreign visitors to the United States under the sponsorship of the Agency for International Development, the State Department, the United Nations, and other organizations. Many trade union leaders and high level foreign government labor officials participated in these programs. During the year, the Department participated in the management of the U.S. Foreign Service, with the Deputy Under Secretary for International Affairs serving on the Board of the Foreign Service. The Department co-sponsored with the State Department a conference at New Delhi, India, of U.S. Foreign Service labor attaches and economic officers stationed in Asia. The Department provided the leadership for U.S. participation in the International Labor Organization’s (ILO) four Governing Body sessions and the annual International Labor Conference in Geneva. U.S. delegations also actively participated in ten additional ILO meetings, as well as in the American States’ Regional Conference in Mexico City. The Department continued to carry out its responsibilities in connection with the OECD Manpower and Social Affairs Committee as well as in U.N. agencies other than the ILO. A series of traveling seminars and exhibits was presented in Bulgaria, Ivory Coast, Kenya, Poland, Romania, Senegal and Yugoslavia. It was sponsored by the U.S. Information Agency. The Overseas Veterans Counseling Program (OVCP) was ended on June 30,1975, after 31/2 years of operation. During that period, the program, a joint job counseling effort of ILAB and the Manpower Administration to aid returning American servicemen and women, provided briefings for approximately 338,000 members of the Armed Forces in groups and nearly 79,000 individually. 72 Employees’ Compensation Appeals Board Despite a large increase in workload during the 1975 fiscal year, the Employees’ Compensation Appeals Board (ECAB) reduced the average time necessary to decide an appeal from 3.7 months to 2.5 months. The Board began the year with 43 cases pending. During the year, 305 new appeals were docketed and 296 cases were closed, leaving 52 cases pending at the end of the year. This represented an increase from the 1974 fiscal year, when 179 appeals were filed and 177 closed, and from the 1973 fiscal year, when 150 appeals were filed and 162 cases closed. Of the 52 pending cases, only three were ready for Board decision. Six had been decided and written opinions were being processed. The balance were awaiting preliminary proceedings or pleadings, such as the filing of a memorandum by the Office of Workers’ Compensation Programs to justify its determination or for a reply by appellant pursuant to the Board’s rules of procedure. The decrease in the average time for deciding an appeal resulted from agreements by the Board, the Office of Workers’ Compensation Programs, and the Office of the Solicitor toward the end of the 1974 fiscal year, intended both to reduce the time for obtaining case records and increase the timely presentation of legal briefs and written arguments. 73 Benefits Review Board The Board hears and determines appeals from decisions of administrative law judges regarding claims for compensation under the Longshoremen’s and Harbor Workers’ Compensation Act and its extensions, and under Title IV, Section 145 and Part C of the Federal Coal Mine Health and Safety Act which provides benefits for total disability or death due to pneumoconiosis. The Board in effect replaces the 175 Federal District Courts where appeals were processed prior to the 1972 amendments to the Act. The three members of the permanent Board were appointed by the Secretary on April 8,1974. An interim Board was appointed by the Secretary of Labor on January 8,1973, and rules of practice and procedure were issued on March 1,1973. During the 1975 fiscal year, 221 cases were appealed to the Board and decisions were issued in 108 cases; 64 cases are pending and 68 cases to date have been appealed to the U. S. Circuit Courts of Appeals. The Board has heard oral argument in 31 cases. Out of the total number of cases appealed to the Board, 14 have been Black Lung cases. The Board’s decisions are published, and are available to the public. 75 Information Activities Rising unemployment and inflation—and the problems these created for American workers— greatly intensified the public’s interest in information about Labor Department programs during the 1975 fiscal year. Demand was particularly heavy for information about wages, prices, employment, and unemployment insurance claims. The Department issued the latest weekly or monthly statistics on these topics as they became available. As a means of keeping the media and American public better informed of the Department’s policies, programs and activities, Secretary Dunlop initiated weekly news briefings with major media representatives regularly covering the agency soon after he took office in March 1975. Other public information efforts during the year focused on promoting awareness of and compliance with laws and programs administered by the Department to protect the nation’s wage-earners. Many public information activities were shaped by the passage of new legislation. For example, when emergency measures to provide the growing number of jobless workers with supplemental unemployment benefits and public service jobs were enacted, the Department used news releases and other media contacts to inform workers quickly how and where they could apply for this new assistance. More news releases and other materials followed signing of the Employee Retirement Income Security Act, as regulations were proposed or issued and new machinery was set up to administer and enforce the law. Two publications— “Often-Asked Questions About the Employee Retirement Income Security Act” and “News About the Employee Retirement Income Security Act”—were issued as nontechnical guides to the protections and requirements of this legislation. Other new laws passed during the fiscal year spurred similar efforts to inform workers and employers. These included the 1974 amendments to the Fair Labor Standards Act and portions of the Rehabilitation Act of 1973 and the Trade Act of 1974 administered by this Department. Occupational safety and health commanded increased attention during the year as scientific evidence continued exposing certain industrial substances as cancer-causing agents or other health hazards. The public was kept abreast of these findings and informed about new Occupational Safety and Health Act standards governing exposure to workplace hazards. In line with the Department’s continuing emphasis on education and training to help workers and employers recognize, avoid and eliminate safety and health hazards, the Construction Industry Standards Digest and General Industry Standards Digest were prepared 77 and distributed to unions, trade associations, insurance companies and other interested groups. These pocket-size handbooks explain in clear, concise language how to comply with standards cited in some 85-90 percent of all workplace compliance inspections. After being the first agency to take action during the 1974 fiscal year in a Federal effort to improve graphics, the Department this year began employing its new design concept for a consistent “visual identity” on all printed information materials. Like other agencies participating in the effort, coordinated by the National Endowment for the Arts, the Department’s goals are to increase the effectiveness of communication with the public and lower costs of graphics design and printing. In another move to improve the quality of Department communications, avoid duplication of effort and achieve economy, the Department began consolidating and centralizing control over all audio-visual activities. While this effort will become fully operational during the coming fiscal year, it already has helped reduce travel time and costs by enabling remarks of top Department officials to be video-taped and played back where appropriate in the field. The need to reach and inform the Department’s many special constituencies continued to be emphasized during the year, as packets of specially tailored Labor Department news and information were mailed to media serving union members, blacks, Hispanic Americans, women and small-town residents. News releases, articles, exhibits, publications and radio and television materials helped inform the general public and interest groups about Labor Department programs and activities. More in-depth coverage was provided in such agency periodicals as Job Safety and Health, Manpower, Monthly Labor Review and Occupational Outlook Quarterly. Department officials maintained an active schedule of speaking engagements before labor, business, academic, professional and other groups to explain policies and programs. Regional and agency information offices responded to inquiries and publication requests and performed other appropriate tasks. The guiding principle and ultimate purpose behind all these activities during the year was to keep the public informed. 78 Appendix Tables Appropriations and other authorizations, fiscal year 1975................80 Farm labor contractor registration act enforcement statistics.......81 Number of employees on Labor Department rolls........................... 82 Characteristics of new participants in comprehensive employment and training act, title I, title II, and title VI for fiscal year 1975 .... 83 Selected employment service activities, U. S. totals for 1966-75 and by State for fiscal year 1975 ........................ 84 Unemployment compensation for federal employees U. S. totals for 1966-75 and by State for fiscal year 1975 ................. 86 Unemployment compensation for ex-servicemen U. S. total for 1966-75 and by State for fiscal year 1975 ................... 88 Benefit data under State unemployment insurance programs, U. S. totals for 1966-75 and by State for fiscal year 1975 ....... 90 Comprehensive employment and training act activity for fiscal year 1975 ....................................................... 92 79 Appropriations and Other Authorizations, Fiscal Year 1975 Positions Amounts Training under Comprehensive Manpower Assistance ......................................................... ____ 2,852,450,000 Training under Older Americans Act ..................... — 12,000,000 Federal Benefit Payments to Unemployed Federal Workers, ex-Servicemen, and persons displaced under Trade Adjustment Act........................... ____ 2,365,000,000 Temporary Employment Assistance ....................... — 875,000,000 Advances to the Unemployment Trust Fund and Other Funds...................... ................................. ____ 5,750,000,000 Administration of Unemployment Compensation and Employment Service Administration ....... — 1,242,300,000 Administration of Other Manpower Programs ....... 3,471 95,674,000 Total Manpower Programs .............................. 3,471 13,192,424,000 Benefit Payments to injured Federal Employees — 165,000,000 Labor-Management Services Administration ......... 1,093 36,845,000 Employment Standards Administration................... 2,859 76,116,000 Occupational Safety and Health Administration..... 1,987 102,006,000 Bureau of Labor Statistics....................................... 1,523 54,422,000 Departmental Management ..................................... 2,292 31,359,000 Total Other Programs....................................... 9,754 465,748,000 Total Department of Labor Appropriations .... 13,225 13,658,172,000 Funds appropriated to other agencies’ programs administered by Department of Labor: Department of Health, Education and Welfare (Work Incentive Funds) ................................... 140,000,000 Agency for International Development ------- 1,388,000 Federal Employees’Compensation Act Claims ------- 182,200,000 Grand Total .................................................... 13,225 13,981,760,000 80 Farm Labor Contractor Registration Act Enforcement Statistics June 21, 1974 December 21, 1974 Fiscal year to to 1975 December 20, 1975 June 21, 1975 Number Percent Number Percent Number Percent Compliance actions, total 910 100 459 100 451 100 No violations disclosed 124 14 87 19 37 8 Violations found, total 786 86 372 81 414 92 No valid contractor certificate of registration or full-time employee identification card ............. Failure of farm labor contractor to exhibit registration card while engaged in covered 539 59 228 50 311 69 activities ...................... Failure to inform farmworker of labor conditions applicable to the work at time of recruit- 61 7 37 8 24 5 ment .............................. 237 26 38 8 199 44 Failure to post: ................ Terms and conditions of 456 50 177 39 279 62 housing occupancy Other terms and condi- 239 26 125 27 114 25 tions of employment .. 409 45 136 30 273 61 Record keeping violations.. Failure to provide itemized earnings and withholding 289 32 68 15 221 49 statements ................. Inadequate vehicle insur- 278 31 87 19 191 42 ance 238 26 54 12 184 41 Other violations ........... Total number of migrants employed . 241 20,443 26 64 9,304 14 177 11,139 39 ‘Preliminary statistics for the first two months of FY 1976 indicate that enforcement activity has been further expanded with 1,206 compliance actions taken and 144 civil actions filed against contractors and growers during that period. 81 Number of Employees on Labor Department Rolls ________ Full-time Employees______ Other District of________ District of Agencies Total Columbia Field______ Total Columbia Field O) O CM O 00 CD CO O CD CM CO CO O LO CM CD CD ■’tCDCO-i-COCMi-COCO NIOM-t -OM-CMt -CT) CDCMCDOOt FLOt —COLO T- b' CM O CM O CD CM t - IO O Tf CO CM 1- CM~ cm" t -~ Characteristics of New Participants in Comprehensive Employment and Training Act, Title I, Title II, and Title VI for Fiscal Year 1975 ’A large portion of participants falling in this group reflect the nonclassification in Puerto Rico by ethnic categories. Tittle I Title II Title VI U.S. Total (Cum. enrollment) ................. . 1,126,000 227,100 157,000 Percent ............................................ 100.0 100.0 100.0 Male .......................................................... 54.4 65.8 70.2 Female...................................................... 45.6 34.2 29.8 Age: Under 22 ........................................ 61.7 23.7 21.4 22-44 ............................................. 32.1 62.9 64.8 45-54 .............................................. 3.5 8.4 9.1 55 and over ................................. 2.6 5.0 4.7 Education: 8 grades or less ......... 13.3 9.4 8.4 9-11 .................................... 47.6 18.3 18.2 12 and over ...................... 39.1 72.3 73.3 On public assistance: AFDC ................. 15.5 6.6 5.6 Other ..................11.3 9.2 8.1 Economically disadvantaged ............. 77.3 48.3 43.6 Ethnic group: White ............................... 54.6 65.1 71.1 Black ............................. 38.5 21.8 22.9 American Indian 1.3 1.0 1.1 Other’............................... 5.6 12.1 4.9 Spanish American ................................ 12.5 16.1 12.9 Limited English-speaking ability........... 4.1 8.0 4.6 Migrants or seasonal farmworkers....... 1.6 1.0 1.0 Veteran: Special Vietnam .................. 5.2 11.3 12.5 Other ....................................... 4.4 12.6 14.6 Handicapped ........................................... 3.8 3.2 2.9 Full-time student................................. 32.8 3.0 2.8 Offender.................................................... 5.7 2.9 2.6 Labor force status: Employed 2.3 3.9 2.0 Underemployed ................... 4.5 8.4 6.4 Unemployed ........................... 61.6 83.6 88.4 Not in labor force ................ 31.6 4.1 3.1 Receiving unemployment insurance .. 3.9 12.0 14.6 Median hourly wage Preenrollment $2.60 $2.87 $3.02 Postenrollment ................................... $2.76 $3.36 $3.57 Selected Employment Service Activities, U.S. Totals for 1966-75 and by State for Fiscal Year 1975 Fiscal year and state New applications' Total counseling interviews Tests administered Placements In nonagricultura industries In I agricultural industries 1966 10,625,700 2,285,316 2,594,175 6,586,827 4,305,207 1967 .................... 10,773,823 2,399,120 2,277,114 6,142,153 4,112,938 1968 10,693,230 2,599,022 2,099,955 5,759,923 4,572,501 1969 9,962,834 2,503,928 1,783,298 5,524,269 4,864,495 1970 .......................? 9,957,060 2,522,963 1,489,561 4,603,597 4,550,348 1971 9,740,415 2,388,563 1,198,423 3,596,832 3,263,541 1972 9,370,000 .2,471,000 1,558,000 3,610,000 2,715,000 19732 ..................... 11,485,026 2,564,935 1,611,500 4,516,703 2,104,931 1974 11,905,444 2,021,731 1,345,169 4,913,391 1,758,096 1975 ...................... 12,348,586 1,643,521 1,676,826 4,273,911 1,497,591 Alabama 244,803 34,634 32,300 80,584 3,425 Alaska 42,831 1,830 1,780 24,786 159 Arizona.............. 174,712 12,807 9,418 72,930 7,543 Arkansas 113,156 18,838 14,227 40,018 27,554 California 1,244,544 98,375 33,737 440,801 806,386 Colorado 184,571 25,994 12,966 55,656 5,667 Connecticut 232,938 12,238 7,408 35,340 3,323 Delaware 36,399 4,017 1,544 9,080 2,821 District of Columbia 101,414 22,616 8,873 42,499 32 Florida 371,233 46,833 26,008 145,557 19,588 Georgia 385,206 45,466 16,481 84,713 926 Hawaii ................ 62,896 7,656 2,820 19,147 2,328 Idaho 77,827 10,488 9,508 37,131 8,349 Illinois ................ 502,796 74,598 28,967 143,102 6,428 Indiana 400,095 23,205 25,397 91,738 1,237 Iowa 150,177 10,244 12,386 88,816 5,856 Kansas ......... 123,263 24,304 8,387 53,061 8,143 Kentucky 179,053 39,942 25,759 60,096 2,103 Louisiana 202,480 15,014 26,461 84,895 27,869 Maine................. 53,437 16,215 2,070 25,021 1,795 Maryland 182,695 36,240 6,265 36,876 12,597 Massachusetts 280,862 42,803 9,841 95,380 14,735 Michigan ........... 588,073 54,242 28,215 86,422 11,008 Minnesota ........... 213,908 36,990 27,212 83,355 11,860 Mississippi 193,947 67,897 40,315 84,434 5,957 Missouri ............... 339,773 39,121 52,250 114,919 7,404 Montana ....... 75,823 42,243 13,746 36,698 7,379 Nebraska ............ 81,136 14,573 6,053 45,350 4,880 Nevada ................ 76,438 8,577 7,041 24,523 1,425 New Hampshire 66,948 4,440 1,863 13,580 611 New Jersey 255,530 44,350 10,670 94,595 11,451 New Mexico 110,519 18,698 7,291 45,206 3,426 New York ........... 471,600 127,425 60,343 361,781 28,728 North Carolina . 416,102 36,600 49,655 80,543 132,751 North Dakota 51,139 8,587 9,531 35,318 5,969 Ohio ................ 507,732 33,505 50,427 117,678 3,239 Oklahoma ............. 228,413 36,820 27,296 125,737 31,342 Oregon ................. 203,011 37,076 12,850 70,440 36,088 Pennsylvania 392,599 74,556 51,746 414,160 171,835 Puerto Rico 179,891 16,106 4,170 44,218 17,657 Rhode Island ...... 61,939 10,665 1,594 23,089 163 South Carolina 205,937 32,860 22,666 53,032 33,854 South Dakota 44,805 18,539 11,180 35,297 5,811 Tennessee 214,398 17,618 31,007 69,334 20,421 84 Selected Employment Service Activities, U.S. Totals for 1966-75 and by State for Fiscal Year 1975 Fiscal year and state New applications' Total counseling interviews Tests administered Placements In nonagricultura industries In I agricultural industries 1966 .................... 10,625,700 2,285,316 2,594,175 6,586,827 4,305,207 1967 ...................... 10,773,823 2,399,120 2,277,114 6,142,153 4,112,938 1968 10,693,230 2,599,022 2,099,955 5,759,923 4,572,501 1969 9,962,834 2,503,928 1,783,298 5,524,269 4,864,495 1970 9,957,060 2,522,963 1,489,561 4,603,597 4,550,348 1971 9,740,415 2,388,563 1,198,423 3,596,832 3,263,541 1972 9,370,000 2,471,000 1,558,000 3,610,000 2,715,000 1973* 2 . 11,485,026 2,564,935 1,611,500 4,516,703 2,104,931 1974 ................... 11,905,444 2,021,731 1,345,169 4,913,391 1,758,096 1975 .................... 12,348,586 1,643,521 1,676,826 4,273,911 1,497,591 Texas 833,776 91,444 119,102 382,581 32,243 Utah 103,093 29,250 27,970 57,280 4,329 Vermont 40,608 6,583 1,955 12,138 795 Virginia 307,743 37,911 46,797 77,433 5,362 Washington 271,411 15,608 10,883 84,491 74,788 West Virginia 127,507 12,712 5,740 40,671 2,626 Wisconsin 258,279 35,860 12,686 64,858 1,609 Wyoming 34,520 8,370 2,619 23,124 1,365 Note: Data reflect transactions. ’ These figures do not include renewals of applications. 2 Revised. Figures exclude Washington State. 85 Unemployment Compensation For Federal Employees1 U.S. Totals For 1966-75 ________ and by State For Fiscal Year 1975 t'xCOCDF'-v-CDOCM inoomcocMCDorx. 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S§SSlo c Sc8S ■ IO SS^SB^S £8g83™S ?£8§8 3833335? 5^SSR3§33S5SB88 833’ “Sr-YS!^feo> J’S T T- T- CO 1 I ooos 88S8 | COMlO^t iss^g > CM > CO ■> « c CO Comprehensive Employment and Training Act Activity for Fiscal Year 1975 Total Title I Title II Title VI Total individuals served ......... 1,510,100 1,126,000 227,100 157,000 Total terminations .................. 658,000 553,300 70,900 33,800 Direct placements .............. 64,200 62,900 1,000 300 Indirect placements .. 98,400 84,500 9,700 4,200 Self placements .................. 39,700 28,600 5,900 5,300 Other positive terminations 198,300 170,800 21,900 5,600 Nonpositive terminations 257,400 206,600 32,400 18.400 Current enrollment, as of June 30, 1975 ....................... 852,000 572,700 156,200 123,100 Cumulative enrollment by program activity Classroom training ............. 297,900 292,000 5,100 800 On-the-job training ............. 76,500 73,800 2,400 300 Public service employment.. 361,200 29,800 211,500 119,900 Work experience ............. 609,700 562,200 10,700 36,800 Other activities ................. 88,000 86,900 1,100 — Current enrollment by program activity, June 30, 1975 Classroom training ............. 127,200 124,200 2,700 300 On-the-job training ............ 41,100 39,400 1,400 300 Public service employment .. 264,100 20,700 149,000 94,500 Work experience ............... 331,100 297,200 4,600 29,300 Other activity ....................... 36,700 36,200 500 — ☆ U.S. GOVERNMENT PRINTING OFFICE : 1976 0 - 595-397 92