[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
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CDCMCDOOt FLOt —COLO
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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
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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