    [United States Department of Labor Fifty-First Annual Report, Fiscal Year 1963]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    SnrvfE 0: FNDUSTT
    NOV 17
    SAN DL- ;O
    PUBLIC LisRARy
    Fifty- first Annual Report
    U.S. Department of Labor • Fiscal Year 1963

    United States
    Department of Labor
    Annual Report, 1963
    UNITED STATES DEPARTMENT OF LABOR
    W. Willard Wirtz, Secretary
    For sale by the Superintendent of Documents, U.S. Government Printing Office
    Washington, D.C. 20402 - Price $1.00 (paper)
    3 1336 05750 2966
    UNITED STATES DEPARTMENT OF LABOR
    Secretary of Labor..................................................................................
    Special Assistant to the Secretary.................................................
    Special Assistant to the Secretary.................................................
    Special Assistant to the Secretary.................................................
    Under Secretary of Labor......................................................................
    Deputy Under Secretary.................................................................
    Special Assistant to the Under Secretary......................................
    Assistant to the Under Secretary...................................................
    Manpower Administrator....................................................................
    Deputy Manpower Administrator for Planning, Research, and
    Evaluation, and Director, Office of Manpower, Automation,
    and Training............................................................................
    Deputy Manpower Administrator for Operations, and Administrator,
    Bureau of Employment Security.............................
    Administrator, Bureau of Apprenticeship and Training............
    Assistant Secretary for Labor-Management Relations........................
    Deputy Assistant Secretary for Labor-Management Relations. ..
    Director, Office of Welfare and Pension Reports.........................
    Commissioner of Labor-Management Reports.............................
    Administrator, Wage and Hour and Public Contracts Divisions.
    Director, Bureau of Veterans’ Reemployment Rights.................
    Assistant Secretary for Labor Standards..............................................
    Deputy Assistant Secretary for Labor Standards.........................
    Director, Bureau of Labor Standards............................................
    Director, Bureau of Employees’ Compensation...........................
    Chairman, Employees’ Compensation Appeals Board.................
    Director, Women’s Bureau.............................................................
    Assistant Secretary of Labor for International Labor Affairs............
    Deputy Assistant Secretary for International Labor Affairs, and
    Administrator, Bureau of International Labor Affairs........
    Assistant Secretary of Labor for Policy Planning and Research........
    Commissioner of Labor Statistics..................................................
    W. Willard Wirtz 1
    John C. Donovan 2
    Stanley C. Ruttenberg 3
    Samuel V. Merrick
    John F. Henning 4
    Millard Cass
    Jack Howard 5
    Robert K. Salyers
    John F. Henning 6
    Seymour L. Wolfbein 7
    Robert C. Goodwin 8
    Edward E. Goshen
    James J. Reynolds
    Nelson M. Bortz
    Frank M. Kleiler
    John L. Holcombe
    Clarence T. Lundquist
    Hugh W. Bradley
    Esther Peterson
    Morris Weisz
    Arthur W. Motley
    William McCauley
    Theodore M. Schwartz
    Esther Peterson
    George L-P Weaver
    Harry Weiss
    Daniel P. Moynihan 8
    Ewan Clague
    Solicitor of Labor................................................................................... Charles Donahue
    Deputy Solicitor of Labor..............................................................
    Administrative Assistant Secretary.......................................................
    Deputy Administrative Assistant Secretary..................................
    Assistant Administrative Assistant Secretary and Director of
    Personnel......................................................................................
    N. Thompson Powers
    Leo R. Werts
    V. S. Hudson
    Edward J. McVeigh
    Librarian.......................................................................................... Margaret F. Brickett
    Director, Office of Information, Publications, and Reports................. John W. Leslie
    i Appointed to this position September 25,1962, succeeding Arthur J. Goldberg, who was appointed to
    the U.S. Supreme Comt.
    2 Appointed to this position October 22,1962.
    2 Appointed to this position January 7,1963.
    «Appointed to this position October 10,1962, succeeding W. Willard Wirtz.
    2 Assigned to this position January 1, 1963, succeeding John C. Donovan, who was appointed Special
    Assistant to the Secretary October 22, 1962.
    2 Designated to this position February 19,1963, in addition to his responsibilities as Under Secretary.
    ’ Designated Deputy Manpower Administrator February 19, 1963, in addition to his responsibilities as
    Director, OMAT.
    2 Designated Deputy Manpower Administrator February 19,1963, in addition to his responsibilities as
    Administrator, BES.
    »Appointed to this position March 8, 1963, from the position of Executive Assistant to the Secretary.
    ii
    UNITED STATES DEPARTMENT OF LADOR
    ANNUAL REPORT, 1963
    CONTENTS
    Page
    Report of the Secretary of Labor............................................ 3
    APPENDICES
    Reports of the Office of the Secretary
    Administrative Assistant Secretary........................................ n
    Director of Information, Publications, and Reports.................... 2.1
    Solicitor of Labor............................................................................ 2.3
    Bureau Reports
    Manpower Administration.................................................................. 41
    Bureau of Apprenticeship and Training................................. 45
    Bureau of Employment Security................................................. 51
    Office of Manpower, Automation, and Training................. 109
    Bureau of Employees’ Compensation............................................. 119
    Employees’ Compensation Appeals Board........................................ 133
    Bureau of International Labor Affairs.............................................. 137
    Bureau of Labor-Management Reports.......................................... 149
    Bureau of Labor Standards................................................................. 171
    Bureau of Labor Statistics.................................................................. 2.03
    Bureau of Veterans’ Reemployment Rights...................................... 2.2.5
    Wage and Hour and Public Contracts Divisions.......................... 2.2.9
    Office of Welfare and Pension Plans.................................................. 2.77
    Women’s Bureau.................................................................................. 2.85
    iii

    REPORT OF THE SECRETARY OF LABOR
    I

    REPORT OF THE SECRETARY OF LABOR
    During 1963, the Department of Labor entered the second half-century
    of its service to the Nation. At the same time, the country was being
    made aware for the first time of two new revolutions affecting men and
    work.
    For it was in the Department’s 51st year that the United States first
    concentrated its attention on the great manpower revolution brought
    on by rapid technological advancement. And, in the hot summer of that
    year, we were all made aware that the struggle for equal rights had
    suddenly become a struggle for equal opportunities.
    The Labor Department was in the forefront of the Government’s response
    to both revolutions.
    It strengthened its organizational structure to meet the challenge of
    the manpower revolution, and prepared the historic First Manpower
    Report of the President, incorporating the Nation’s commitment to the
    idea that there are to be no human hostages left in the wake of progress.
    Administratively, one of the Department’s major undertakings in 1963
    was the launching of the manpower development and training program—a
    project of far-reaching social and economic significance for the Nation.
    The attention of the Department, in this 51st year, became focused more
    clearly than ever upon the central problem of manpower development,
    use, and need. Equipped with the research and training authority of the
    Manpower Development and Training Act, the Department began, for the
    first time in the Nation’s history, to draw up detailed balance sheets of
    our manpower sources. Examination into the causes and nature of continued
    unemployment, inquiries into the impact of technological change
    upon the labor force, estimates of the cost of discrimination, assessment
    of the primary importance of proper education and training in a modern
    economy—all of the resources of the Department have been brought to
    bear upon these fundamental considerations.
    And as framers of the manpower policies of this Nation, we are challenged
    to keep pace with the genius of science. We must bring to the architecture
    of manpower policy the degrees of invention, the ingenuity, the boldness
    which characterize today’s phenomenal rate of scientific discovery.
    We must develop those programs which will safeguard the person who
    may, as an individual, be adversely affected by a technological development
    which greatly benefits the community as a whole. Our task includes the
    responsibility to persuade, to obtain consent, to overcome the force of
    inertia represented in men’s desire as individuals for even the incomplete
    security they think the status quo gives them.
    3
    Today, a man’s job is also the uncertain product of unpredictable but
    almost certain change.
    Within the next 30 days, 500,000 people will move to new employers,
    600,000 to a different line of work. And 400,000 to different areas of the
    country.
    This change will be devastating unless we harness it to our own use.
    If we guide change for our benefit, we must first erect an economy capable
    of enlarging itself, an economy that offers to each man a meaningful use
    of his time and talent.
    I think that in terms of our particular interest in achieving a full-employment
    economy the largest importance attaches to the stimulation of consumer
    purchasing power.
    Beyond that, we can and must do better in approaching the problems of
    technology. Attention must be given in the private processes of collective
    bargaining to the problems presented by automation. We are going to
    have to review our seniority systems, our training and retraining activities,
    our employment security programs, and our retirement plans to find ways
    of assuring that a man’s rights are not destroyed when he has to move
    aside for a machine.
    Only part of this job can be done privately. The rest of the answer to
    it is illustrated by the enactment by Congress of such legislation as the
    Manpower Development and Training Act. Under this legislation we will
    undertake to train some 400,000 people in the next 3 years.
    We are going to need in this decade alone 5 million more skilled workers
    than are presently available. It is important that we identify today the
    types of jobs that these skilled workers will fill so that we can plan for
    the future. Retraining must be devised on a basis of working back from
    such knowledge and I am sure we can gear the retraining program to
    previously identifiable job opportunities.
    The real answer to the change that is upon us is that nothing will make
    sense unless we expand the economy to the point where there are another
    4 million jobs.
    We have vast unmet needs in this country. Our real wealth in meeting
    them is the use of the full potential of each individual who wants to work.
    When we accomplish this, then we will meet these problems. Retraining
    is important in doing that and so are many other factors, but we must
    move the economy on to a faster employment pace.
    The vantage of 1963—the Department’s 50th anniversary—is the best
    one irom which to consider this central challenge of continuing change.
    We do not face a world war, as we have done twice in the past. We do
    not face the collapse of an entire economic system, as we once did. We
    face, rather, the product of success—an economy so dynamic in its technical
    ability that it has outstripped the skills of millions, depriving itself in the
    process of that many consumers. As in the earlier periods, the Department
    will be able to make a contribution to this problem because the
    individual remains its central concern.
    4
    In order to cope more effectively with the mounting problems of manpower,
    the Manpower Administration was created in February 1963. This
    vital new organization consists of the Bureau of Employment Security,
    the Bureau of Apprenticeship and Training, and the Office of Manpower,
    Automation, and Training.
    In compliance with provisions of the Trade Expansion Act of igSx, BES
    took several positive measures. It developed specifications for regulations
    and agreements and issued operational procedures as guides to State agencies.
    BES also initiated trade adjustment allowance notices to inform State
    agencies of industry, firm, and worker petitions filed with the U.S. Tariff
    Commission as well as findings of petitions handled by the Commission.
    A great deal of additional action was taken by the Department in 1963
    in the manpower field.
    The Department’s Office of the Solicitor, for example, assisted in drafting
    three major pieces of legislation affecting manpower that were enacted
    during the year—the Equal Pay Act, the Trade Expansion Act, and amendments
    to the Welfare and Pension Plans Disclosure Act.
    In fiscal 1963, public employment offices attained their highest jobplacement
    level since World War II, placing 6.6 million nonagricultural
    workers—x percent above i96x’s record figure.
    The Bureau of Apprenticeship and Training executed in March its first
    contract for an on-the-job training program. By June, 4X contracts,
    providing for the training of 1,6x7 persons in 117 occupations, had been
    approved.
    Some 30,000 unemployed and underemployed workers were enrolled in
    institutional and on-the-job training courses under the auspices of the
    Office of Manpower, Automation, and Training. These courses were
    tailored to equip trainees with labor market skills currently in demand.
    Nine thousand persons were enrolled under the Area Redevelopment Act
    and more than 30,000 under the Manpower Development and Training Act.
    Counseling services for youth, women, and older workers were implemented
    in employment centers, and a special placement and counseling
    service for school dropouts was set up.
    The Bureau of Employment Security modernized the processing of data
    and created a telecommunication network for a nationwide interchange of
    labor supply and demand information.
    Training projects were approved for 60,000 persons in 49 States, the
    District of Columbia, Puerto Rico, and the Virgin Islands. Intensive
    research was made on the characteristics of the potential and actual trainees,
    and youth problems were dealt with by 18 contracts signed during the year.
    The Department worked effectively for equal job opportunities through
    the example of its own employment policies, the democratic standards of
    its apprenticeship programs, and the power of its influence. It stressed the
    necessity of making available more job opportunities for all, in order to
    provide equal job opportunities for those to whom they had been denied.
    5
    Its definitive actions in this field were concentrated to a large’degree on
    furthering^employment opportunities of persons from minority groups.
    State^employment services, for example, are now required to refer applicants
    on a nondiscriminatory basis. Clearly prohibited are the segregation
    of applicants and reference to race on records and job-acceptance orders.
    The Department sponsored conferences to promote the employment of
    Negro college graduates. Presidents and deans of Negro colleges participated
    in the national and regional gatherings, which also considered
    possible revisions of curricula.
    Finally, the Department achieved a good record in regard to equal
    opportunities for its own employees. Its personnel rolls showed a 100
    percent increase in the number of nonwhites holding managerial and professional
    staff positions.
    An excellent record in the enforcement of laws affecting millions of
    American wage earners—really the entire economy—was compiled in 1963.
    A new enforcement mark was set when^i,6o7^cases were adjudicated and
    million in back wages recovered under the Fair Labor Standards Act and
    Walsh-Healey Public Contracts Act. Determinations under the Davis-
    Bacon Act also reached a new high, and bonding provisions of the Welfare
    and Pension Plans Disclosure Act were implemented.
    The activities of the Bureau of Labor-Management Reports, in its fourth
    year of existence, were marked by an increase in civil and criminal prosecutions
    under the Labor-Management Reporting and Disclosure Act. The
    number of violations reaching litigation almost doubled—rising from 76
    in ig6z to 147 in 1963.
    BLMR also entered into a new field activity in fiscal 1963 by conducting
    104 investigations delegated to it by the Department’s Office of Welfare
    and Pension Plans under the amended WPPDA.
    Marking the 15th anniversary of the enactment of the Fair Labor Standards
    Act and the first full year of enforcement of the 1961 amendments
    which extended coverage to certain large enterprises engaged in or producing
    goods for commerce, 1963 also witnessed the largest back-wage
    disclosures made in enforcement history.
    More than $49 million was owed to 311,000 employees, with $19 million
    representing unpaid minimum wages and the remainder overtime compensation.
    Employers agreed to pay more than $2.0 million to 176,000 underpaid
    employees as a result of WHPC investigations.
    In addition, investigations of child labor violations revealed that over
    10,000 children were illegally employed in nonagricultural work and about
    7,000 on farms.
    Under the Secretary of Labor’s new enforcement powers stemming from
    the Welfare and Pension Plans Disclosure Act, the Office of Welfare and
    Pension Plans opened cases involving 63 z possible civil violations. BLMR ’ s
    field staff assisted in disposing of 304 alleged violations.
    The Office of the Solicitor drafted in fiscal 1963 both standards of conduct
    for employee organizations and a code of fair labor practices to implement
    6
    Executive Order 10988 which concerns employee-management relations in
    the Federal service.
    In addition, 2.9,771 cases—nearly 1,000 more than the figure for the
    previous year—were compensated under the Federal workmen’s compensation
    programs. The program for decentralizing adjudication and
    servicing claims arising under the Federal Employees’ Compensation Act
    was completed, with 135,000 cases being serviced.
    In international labor affairs, 1963 featured completion of the interagency
    agreement calling for increased departmental participation in the planning
    and implementation of the Agency for International Development s overseas
    program.
    Eight new labor attache posts were established and there was a
    strengthening of programs involving trade union work and visits to the
    United States of foreign trade unionists. A total of 173 foreign visitors
    were programed, with another 553 being referred from other agencies and
    organizations.
    A large share of the activity in the Department’s Women s Bureau was
    centered around intensive efforts to establish the principle of equal pay for
    men and women who do the same or comparable work. The Bureau had
    long been interested in this program, and was relied upon heavily to supply
    data. Efforts of all concerned to secure legislative action culminated in the
    adoption of the Equal Pay Act of 1963, signed by the President on June 10.
    Work of the President’s Commission on the Status of Women added new
    dimensions and responsibilities to current programs.
    Efforts were intensified to investigate and alleviate the conditions of
    women from low-waged, disadvantaged groups. New studies, for example,
    were undertaken in response to demands to include in the Bureau s list of
    publications “Negro Women in i960” and “Job Horizons for College
    Women in the 1960’s.”
    In respect to workers’ health considerations, the Bureau of Labor
    Standards took many effective measures. For example, the Bureau initiated
    organizational work—as directed by the President to set up in 1964 the
    Conference on Occupational Safety.
    Also, an analysis was made of 3,300 bills concerning labor standards
    from legislatures of 47 States and Puerto Rico, and a study was launched
    aimed at improving State administration of problems regarding ionizing
    radiation in workmen’s compensation. Finally, there was an intensification
    of the program of safety training for State and Federal personnel, and
    encouraging progress was noted in reducing injury rates in longshoring
    and ship repair.
    The concerted and active efforts of the Department and other governmental
    agencies concerned with the labor-management area contributed in
    1963 to the greatest period of industrial peace the Nation has enjoyed
    since the end of World War II.
    The ratio of time worked to time lost dropped to the second lowest level
    for a comparable period in postwar years in the first 6 months of *1963
    7
    Another outstanding record was set by major collective bargaining
    agreements which covered some x million workers in the first part of the
    year. The majority of these laborers received wage increases averaging
    3.5 percent.
    Missile sites showed only one man-day lost due to labor disputes for
    every i,x88 man-days worked; as a result, 99.9X percent of all available
    work time on missile sites was used to ready the sites on schedule to receive
    weapons and crews.
    Furthermore, a program aimed at an ultimate goal of reducing the number
    of the Department’s buildings in the Washington area from xo to a single
    structure was developed and proposed to Congress.
    So, in moving into its second half-century of service, the Department
    embarked on a striking new era. The two revolutions of this 51st year
    signify the advent of a period when the country will be occupied to an
    unprecedented extent with the area of responsibility Congress has charged
    to this Department—“the welfare of the wage earners of the United
    States.”
    This 51st annual report makes it clear that the Department of Labor
    entered this period of added responsibilities in a condition of preparedness
    and strength. In its organization, its personnel and its morale, the Department
    is fully prepared to discharge its duties with efficiency and dedication.
    We face the challenge of the future with confidence and pride.
    8

    OFFICE OF THE ADMINISTRATIVE
    ASSISTANT SECRETARY
    The Administrative Assistant Secretary is the principal administrative
    official of the Department. He is responsible for the budgetary and financial,
    personnel, and administrative management; program analysis and
    evaluation; organization of the Department; provision of administrative
    services; and administration of the Department of Labor Library. He is
    assisted by a Deputy Administrative Assistant Secretary, who serves as the
    Department’s budget officer and comptroller, and by an Assistant Administrative
    Assistant Secretary, who serves as director of personnel.
    All major relationships outside the Department on administrative and
    management matters are developed and maintained by the Administrative
    Assistant Secretary. He also coordinates contacts with the Bureau of the
    Budget and the Congress, except for those involving substantive legislation.
    BUDGET AND FINANCIAL MANAGEMENT
    The Office of Budget Administration and the Office of Financial *Manage
    ment were established in fiscal year 1963 to assist the Deputy Administrative
    Assistant Secretary in his role as comptroller and chief budget
    officer. The Office of Budget Administration provides policy, technical,
    and overall administrative guidance to all bureaus and offices of the Department
    on budget formulation, presentation, and execution. The Office of
    Financial Management provides policy and technical guidance, and furnishes
    centralized accounting, payroll, and other financial management services to
    the bureaus and offices.
    Appropriations and other authorizations for the Department of Labor for
    fiscal year 1963 totaled $777 million and provided for about 9,000 positions.
    Of this amount, $146 million was for salaries and expenses,1 $zi6 million
    for unemployment compensation for Federal employees and ex-servicemen
    and injured Federal employees’ claims and expenses, and $414 million from
    trust fund authorizations (including $400 million for grants to States for
    administrative costs of the employment compensation programs).
    Included in these figures are supplemental appropriations made for salary
    increases granted by Public Law 87-793 an<^ other supplemental for the
    unemployment compensation fund for Federal employees and ex-servicemen
    ($2.1 million), the employed compensation and claims fund ($3,150,000),
    and the trade adjustment activities function ($100,000).
    ’Including $70 million for the newly created manpower development and training activities.
    11
    Appropriations and other authorisations, fiscal year 11)63
    SALARIES AND EXPENSES
    Positions Amount
    Bureau of Labor Statistics.......................................................................... i, 31Z $14, 590, 2.50
    Revision of Consumer Price Index...................................................... 157 1,364,350
    Bureau of International Labor Affairs....................................................... 73 808, 750
    Area redevelopment activities.................................................................... 45 11,060,000
    Manpower development and training activities....................................... 54Z 70,957,700
    Bureau of Apprenticeship and Training..................................................... 555 5, ziz, zoo
    Mexican farm labor program, compliance activities.................... 164 1, 387, Z50
    Bureau of Veterans’ Reemployment Rights.............................................. 65 65z, 000
    Bureau of Labor Standards.......................................................................... 317 -334, Z50
    Office of Welfare and Pension Plans........................................................... 189 1, 351, 300
    Bureau of Labor-Management Reports...................................................... 550 5, 9Z3, 900
    Bureau of Employees’Compensation......................................................... 532. 3,981,800
    Women’s Bureau.......................................................................................... 93 930,050
    Wage and Hour and Public Contracts Divisions....................................... 1,818 18, Z73, 6co
    Office of the Solicitor.................................................................................. 495 4,361,700
    Trade adjustment activities........................................................................ iz IQo, 000
    Office of the Secretary........................................................................... .... 199 2^093,450
    Working capital fund operations......................................................... 363 ...................
    Total, salaries and expenses from general funds............................ 7, 481 146, 38Z, 550
    Unemployment compensation for Federal employees and ex-servicemen............... 151, 000, 000
    Employees’ compensation, claims and expenses...................................................... 65, zzi, 000
    Total, benefit and claims from general funds................................................ zi6, zzr, 000
    TRUST FUND AUTHORIZATIONS
    Office of the Secretary................................................................................................ 235, 800
    Office of the Solicitor.................................................................................................. 850
    Bureau of Employment Security (salaries and expenses)......................... 1,164 11, 935, 860
    Grants to States.......................................................................................................... 400, 000, 000
    Reimbursement from Mexican farm labor supply fund (salaries and
    expenses)............................................................................................... Z13 z, o48,500
    Administration of longshoremen’s rehabilitation program..................... 7 57, 860
    Total, trust fund authorizations...................................................... 1, 384 414, 30Z, 870
    Total, funds available....................................................................... 8,865 776, 906, 4Z0
    PERSONNEL ADMINISTRATION
    The Department began development and operation of an aggressive program
    for the full and appropriate utilization of employee skills and abilities
    and the improvement of employee performance and morale. One of the first
    steps was the development and operation of a departmentwide career
    counseling and development program for nonprofessional employees. The
    program provides testing and career counseling services for all nonprofessional
    employees of the Department who request them. Counseling services
    and assistance are also provided to employees and supervisors in connection
    with a wide variety of problems which tend to affect employee performance
    adversely.
    Formal or exclusive recognition was granted to io employee unions,
    representing over one-half of the Department s employees. Two agreements
    were negotiated with the union that represents most of the Department’s
    Washington staff. A series of conferences was held, both in Washington
    and in the Department’s regional offices, to familiarize executive and supervisory
    personnel with the objectives of this program. Thus, the year saw
    major steps taken toward the implementation of the program envisioned by
    the President’s order on employee-management cooperation.
    A departmentwide program of training was undertaken to improve
    supervision. Under this program, supervisors were given 40 hours of
    instruction and practice in dealing with problems arising in the employeesupervisor
    relationship. Other significant training activities included
    office practices refresher training to improve stenographic, typing, and
    secretarial skills, and assigning of executive and management officials to
    seminars in operations research, automatic data processing, and other
    management subjects.
    Continuing its efforts to anticipate and meet future needs for high quality
    managerial ability, the Department widened its program of recruiting from
    the Federal service entrance examination and the management intern
    examination. A positive effort was made to bring these examinations to
    the attention of minority groups.
    The Department also extended its stenographer recruiting activities
    under a new civil service authority which enabled it to offer career-conditional
    appointments to eligibles tested in the field. Nearly 1,2.00 students
    were tested by the Department at 70 high schools and 6 colleges in Virginia,
    Pennsylvania, Kentucky, and North Carolina. Approximately 600 candidates
    attained eligible standing, and from these the Department was able
    to fill all existing stenographer and typist vacancies. The total of new
    employees in grades GS-i through GS-10 was 2.,641.
    The Department of Labor Board of U.S. Civil Service Examiners announced
    examinations and established or maintained the following registers:
    Labor economist, employment service adviser, social administration adviser,
    social insurance research analyst, apprenticeship and training representative,
    maritime safety officer and assistant, and State veterans employment representative.
    This involved evaluating over 2.,000 applications and answering
    over 4,000 inquiries.
    The Department’s "Employee Handbook” was revised and reissued in
    expanded, looseleaf form, and furnished to all employees and persons
    entering on duty.
    Employees were given counsel and assistance on many subjects, such as
    retirement, employees’ compensation, life insurance, health benefits, personal
    finances, and housing. Through the employee health services, the
    711—471—64------- 2 13
    Department offered inoculations against influenza, polio, and tetanus;
    tested for diabetes and glaucoma; and arranged health maintenance examinations
    given by the Public Health Service.
    New directives were developed and released for (i) evaluating employee
    performance in connection with the granting of within-grade increases,
    Ql ) preventing conflicts of interest on the part of advisers and consultants,
    and (3) setting pay rates for consultants and experts. Revisions of policy
    and procedural directives were made in the areas of equal employment
    opportunity, position classification, administration of adverse actions,
    ethics and conduct, personnel security, transfers to public international
    organizations, and protection of the employment and pay status of employees
    whose service is interrupted by military duty.
    Position classification activity continued at a high level as post-staffing
    reviews of new organizations became necessary, major bureaus were reorganized,
    and the Manpower Administration was formed. Over 16,000
    personnel actions were processed. Employment in the Department at the
    close of the fiscal year is shown in the following table: ■
    Number of employees on the rolls of the Department of Labor as of June 30, 1963
    Bureau or office Total
    Full-time paid employees Other
    Total Field Total D.C, Field
    All bureaus and offices___________________
    Office of the Secretary___________ ____ _
    Office of the Solicitor_________________
    Bureau of Labor Standards___________
    Wage and Hour and Public Contracts
    Divisions_____________ ______ _____
    Bureau of Labor Statistics____________
    Bureau of Labor-Management Reports...
    Women’s Bureau____________________
    Bureau of Apprenticeship and Training...
    Bureau of Employees’ Compensation___
    Bureau of Employment Security_______
    Bureau of Veterans’ Reemployment
    Rights------------------------------------------
    Bureau of International Labor Affairs—
    Office of Manpower, Automation, and
    Training__________________________
    Office of Welfare and Pension Plans____
    666
    501
    317
    1,813
    1,837
    525
    100
    586
    575
    1,932
    66
    189
    307
    153
    9,198 5,054
    630
    494
    317
    1,781
    1,633
    518
    91
    584
    573
    1,879
    63
    180
    303
    152
    582
    311
    183
    312
    1,241
    244
    83
    114
    167
    1,192
    15
    180
    278
    152
    4,144
    48
    183
    134
    1,469
    392
    274
    8
    470
    406
    687
    48
    25
    369
    36
    7
    32
    204
    7922
    53
    39
    4
    102
    21
    7
    4
    24
    3921
    15
    29
    41
    267
    15
    28
    180
    4
    38
    President’s Committee on Equal Employment
    Opportunity____________ 2 2
    ORGANIZATION AND MANAGEMENT
    A major reorganization of the Department’s manpower activities was
    carried out during the year. A Manpower Administration, headed by the
    Under Secretary as Manpower Administrator, was established to direct and
    coordinate the manpower activities of the Department. The Manpower
    Administrator has responsibility for the Department’s manpower programs
    and activities. He is assisted by two Deputy Manpower Administrators,
    three Assistant Manpower Administrators, and other officials in carrying out
    a comprehensive manpower program, which includes research, development,
    distribution, utilization, administration, and program support.
    14
    Labor-management programs and operations were reviewed, including
    those under the Welfare and Pension Plans Disclosure Act and the Labor-
    Management Reporting and Disclosure Act. Particular emphasis was
    placed upon exploring the benefits which might accrue from realigning
    these programs and activities under a Labor-Management Services Administration.
    1
    Underway was a review of the Department’s systems, procedures, and
    methods in determining, allocating, and utilizing manpower resources.
    This was being done by a joint review team comprised of representatives
    of the Bureau of the Budget, the Civil Service Commission, and the Department
    of Labor. It is expected that the review will aid in improving
    practices for the management, development, and utilization of personnel.
    A departmentwide management appraisal and standards project on
    paperwork management programs and activities was initiated late in the
    fiscal year, with the assistance of the National Archives and Records
    Service, General Services Administration. The project is designed to (i)
    appraise existing policies, programs, and systems for management of paperwork,
    (z) formulate minimum standards as necessary to insure efficient and
    economical paperwork management, and (3) provide technical advice,
    training, and assistance to bureaus and offices, as necessary, to implement
    the standards.
    Initiated during the year was a study to examine departmental and bureau
    policies and practices in providing administrative management services to
    field organizations.
    A project was undertaken for the development of a departmentwide
    program planning and review system which would provide top staff of the
    Department with data essential to the development, guidance, and control
    of programs.
    A survey was made of personnel management programs and operations
    throughout the Department. Among the recommendations under consideration
    was the delegation of greater authority to bureau and office heads
    and to regional directors in the field of personnel management operations.
    A departmentwide test was conducted to determine the benefits and
    economies that could be derived by using Government-owned motor
    vehicles in lieu of privately owned vehicles for the performance of official
    duties. It is estimated that more than $100,000 can be conserved annually
    by wider participation in the GSA Motor Pool System. The Department
    is negotiating with GSA for the assignment of approximately 350 motor
    pool vehicles during fiscal year 1964.
    A review was initiated of all youth activities of the Department, for the
    purpose of developing improved means for the organization, direction, and
    coordination of the Department’s total youth program.
    Technical assistance in the areas of organization planning and procedural
    development was provided in conjunction with the proposed Youth
    Employment Act.
    * Established August 21,1963.
    15
    The Department instituted a system which utilizes automatic data
    processing equipment in personnel recordkeeping and statistical reporting.
    The system produces many required Civil Service Commission reports on
    ADP equipment as a byproduct of the day-to-day processing of personnel
    actions. In addition, the system provides up-to-date staffing lists which
    are an essential component of the Department’s evolving comprehensive
    management reporting system.
    A project was initiated for the development of a departmentwide manpower
    control system.
    A requirements survey was conducted of the organization and administrative
    procedures necessary for implementing the Department’s responsibilities
    under the Trade Expansion Act of 1961. It was concluded that
    major functions associated with carrying out the legislation could be
    assigned to existing organizational components in the Department, and that
    new organizational components would not be necessary in the immediate
    future. Technical assistance was provided in drafting and issuing orders,
    regulations, and procedures to carry out the trade agreement, tariff adjustment,
    and worker adjustment assistance responsibilities of the Department.
    LIBRARY
    There was a large increase in all Library activities. The total circulation
    was 80,369, a gain of more than 31 percent over the previous year. Over
    6,100 reference questions were answered, an increase of over 38 percent.
    Volumes cataloged totaled i2.,6ix, a gain of more than 2.3 percent. Three
    hundred and ninety-seven volumes were withdrawn from the collection.
    The net increase was 11,2.15, raising the total to more than 415,000 cataloged
    volumes. In all, 14,495 new cards were added to the catalog, an increase
    of 43 percent over the previous year.
    A small reference unit was established in the William Building in Silver
    Spring, and a collection of books and pamphlets and Library services were
    provided to the manpower seminar which is administered by the Bureau of
    International Labor Affairs for officials of underdeveloped countries.
    ADMINISTRATIVE SERVICES
    The following were among the administrative concerns:
    1. Space:
    The chronic space shortage of fiscal year 1961 carried over into fiscal year
    1963 and continued to be one of the Department’s most pressing administrative
    problems. Departmental operations were housed in over 10 widely
    separated buildings in the District of Columbia metropolitan area. As in
    the previous year, this scattering of operations created communications
    difficulties and other administrative hardships.
    16
    Work was centered on a plan to reduce the total number of locations and
    simultaneously consolidate each major organizational segment into one
    building along with other functionally related organizations, as space
    permitted. To this end, the Bureau of Labor Standards was consolidated
    in one building and a plan was devised for (T) consolidating the Bureau of
    Apprenticeship and Training, Office of Manpower, Automation, and Training,
    and the United States Employment Service of the Bureau of Employment
    Security in one building; (x) consolidating the Bureau of Labor Statistics,
    including its Division of Data Processing, in a second building; and (3)
    effecting other improvements by way of relocating certain operations to
    create more efficient and homogeneous organizational groupings of personnel
    and functions.
    To achieve the above and simultaneously meet most of its unmet space
    requirements, the Department requested the General Services Administration
    to assign approximately 105,000 square feet of new office space in one
    building in the downtown area. The space was expected to be available
    for occupancy in October 1963. In addition to meeting most of its immediate
    needs, the space would enable the Department to reduce its total
    number of locations.
    On a longer range basis, and in recognition of the Department s chronic
    space problems, the General Services Administration initiated action to
    obtain congressional approval for construction of a new building in the
    District of Columbia capable of housing the entire Department of Labor
    headquarters operation.
    The new Employment Security Building at 6th Street between Pennsylvania
    Avenue and C Street NW., which was started in November 1961,
    neared completion at the end of the fiscal year. Occupancy in August 1963
    was assured. The building will house the United States Employment
    Service for the District of Columbia and the District of Columbia Unemployment
    Compensation Board.
    Considerable emphasis was placed on plans to consolidate space holdings
    in cities where departmental regional operations are located, and to upgrade
    substandard or marginal space. Arrangements were made to consolidate
    all departmental regional operations in Kansas City, Mo., in one building
    and similar operations in Atlanta, Ga., into two adjacent buildings. Action
    was initiated to obtain or upgrade space in other cities, including
    Chicago, Ill., and work will be continued during the forthcoming fiscal
    year on further space consolidations in other cities housing departmental
    regional operations.
    x. Data processing:
    OAAS data processing activities were devoted primarily during the year
    to transferring bureau and office payrolls to machine operations. Following
    a successful pilot transfer during the preceding year, the end of fiscal year
    1963 saw the transfer of approximately 60 percent of all departmental
    payrolls.
    17
    A new program was initiated that accommodates the personnel records
    of all employees of the Department and provides improved statistical reporting
    on personnel matters plus preparation of departmentwide staffing
    patterns and merit staffing reports.
    Also of significance was a decision to select a disk computer system for
    installation in December 1963. The decision was based on a comprehensive
    study by OAAS personnel. The new system is expected to meet efficiently
    and effectively the increasing need for faster and more expanded
    centralized data processing services.
    3. Printing and reproduction:
    The reproduction of eight recurring publications was transferred to the
    Government Printing Office. The resulting reduction of approximately
    19 million reproduction impressions should materially assist the Department’s
    central reproduction facilities in handling the increasing amount of
    work requested by departmental activities. As with other administrative
    services, the increasing number of departmental organizations, reflecting the
    increasing program responsibilities of the Department, has had a serious
    impact on the Department’s central reproduction facilities. Requisitions
    for services increased from 13,934 for fiscal year ig6z to 2.2.,065 fiscal
    year 1963, and while reproduction units decreased from 105.7 million to
    79.9 million, the total number of pages submitted for reproduction increased
    from 111,100 to 190,000, thereby indicating that a larger number of “short
    run” type jobs were being received.
    Considerable attention was given during the year to staffing changes
    and procedural improvements needed because of the changing workload.
    However, additional personnel were not added and an improved scheduling
    and control system was installed with provision for a central point for
    information on jobs in progress.
    4. Services and supply:
    The transfer of blank forms, publications, and supplies, previously located
    on several floors in four different buildings, was completed during the year
    and a centralized unit of storage and distribution was inaugurated.
    A considerable amount of storage space was converted to office space in
    two of the Department’s principal buildings. Consolidation of the storage
    and distribution operations opened the way for initiation of a plan to relocate
    printing and reproduction operations in the Main Labor Building
    basement to bring about better functional alignment, improved operations,
    and operating economies; relocation of conference rooms from other floors
    of the Main Labor Building in order to release space for office use; expansion
    and improvement of the Secretary’s dining room, officials’ dining room,
    and the stand operated by the Washington Society for the Blind; plus general
    upgrading of all space in the Main Labor Building basement. As of
    June 30, 1963, the architectural and engineering plans for the Main Labor
    Building alteration project were in the prefinal specification preparation
    stage, and actual renovation work was expected to be initiated in December
    1963.
    18
    Related to the above was the completion of an exhibit hall in space
    adjoining the Main Labor Building basement to house a permanent Department
    of Labor Museum. The museum was opened in March 1963 as
    part of the Department’s 50th anniversary celebration.
    Telephone service for the Silver Spring offices of the Department was
    consolidated with the main switchboard through dial satellite equipment
    in November 1961.
    5. Regional administrative services offices:
    One additional office was established during the year in Cleveland,
    Ohio, bringing the total of these offices to five. Offices were previously
    established in Boston, Chicago, New York, and San Francisco. A total
    of 1,845 field personnel in zi6 offices are serviced from these central service
    offices.
    Plans were completed for the establishment of RASO activities in Atlanta
    and Kansas City during fiscal year 1964, and plans were in the developmental
    stage for the expansion of services performed at all RASO locations which
    are expected to result in more efficient and economic operations, better
    utilization of manpower and equipment, and the provision of additional
    timely services.
    19

    OFFICE OF INFORMATION, PUBLICATIONS,
    AND REPORTS
    Fiscal year 1963 marked the 50th anniversary of the U.S. Department of
    Labor, established by act of Congress, March 4, 1913. The Office of Information,
    Publications, and Reports joined in the Department’s anniversary
    celebration and contributed to its success with three anniversary publications
    on labor in America and the Department’s development: “Challenge
    and Change,” “The Anvil and the Plow,” and “Labor in America.”
    An added attraction of the observance was the establishment of the
    U.S. Department of Labor Museum, which exhibits visual displays on outstanding
    developments in labor. Created by the Office, the museum will
    become a permanent feature of the Department.
    In keeping with its primary function—to inform the public of the work
    of the Department, its publications, facts compiled by its various bureaus
    and offices, and laws enacted—the Office issued news releases and replied
    to some 150,000 inquiries from labor, business, and the public. The Office,
    headed by a Director, serves as chief coordinator between the Department
    and the press, radio, television, and other public information media, including
    approximately 550 labor and 3,000 weekly newspapers.
    The Office reviewed publications issued by the various bureaus and
    offices of the Department for consistency with Department policy. It compiled
    and edited publications of departmentwide significance, and prepared
    exhibits on labor and economic matters.
    The Office’s visual services division participated in the anniversary
    celebration with the designing, construction, and processing of 600 posters,
    15 portable exhibits, and 3 large backdrops. Art work and designs for the
    Office’s anniversary publications were contributed by the visual services
    division, which also provided art work and designs for 42. bureau and
    departmental publications of varied types and constructed 60 new portable
    exhibits and 15 large exhibits for the Department.
    Through a silk-screening reproduction process, the division prepared
    approximately 3,500 posters, training charts, and mailing pieces. The
    photographic section processed approximately 30,000 prints and color
    slides.
    To aid in the understanding of the Department and its work, Office
    staff participated in major State, national, and international conferences
    and conventions sponsored by labor unions and business and professional
    organizations.
    21

    OFFICE OF THE SOLICITOR
    The displacement of workers by automation, the pressing need for job
    training and retraining, and the special problems of youth and minority
    groups were matters of particular concern to the Department during fiscal
    year 1963. The Solicitor, as the chief legal officer of the Department as
    well as a policy official and adviser, is responsible for the legal aspects of
    the Depirtment’s activities in these areas. He advises the Secretary, the
    Under Secretary, and the Assistant Secretaries, and also performs many diversified
    types of legal services which are required in the operations of the
    various bureaus and offices of the Department. One of the more significant
    areas of his responsibility is the handling of legal proceedings arising under
    laws administered and enforced by the Department. He also serves as top
    legal adviser to the Secretary in formulating and preparing the Department’s
    legislative programs, and in appearances before congressional committees.
    In addition to these functions, the Solicitor is authorized to perform
    operating functions in connection with the administration and enforcement
    of the Davis-Bacon Act and other statutes relating to the predetermination
    and payment of prevailing wages on Federal and federally financed and
    assisted construction projects. During the year, he testified at length
    before a House special labor subcommittee on the administration of these
    laws. The Solicitor is also vested with final authority with respect to
    tort claims arising out of the Department’s activities.
    The reorganization of the Solicitor’s Office during the past year—aimed
    primarily at developing a more closely coordinated staff, with more opportunity
    for diversification of work assignments—resulted in the consolidation
    of the eight divisions of the Office into five. The new arrangement merges
    the General Interpretative Services Division and the Division of Manpower
    and Employment Security into a Division of Interpretations and Opinions.
    The Litigation Division now performs the functions of three former divisions:
    Trial Litigation and Administrative Legal Services, Supreme Court
    and Appellate Litigation, and Employees’ Compensation. The other
    three divisions are Legislation, Labor-Management Laws, and Wage Determinations.
    The immediate Office of the Solicitor is composed of the
    Solicitor, his Deputy, and several attorneys as special assistants assigned
    to the handling of special legal problems.
    In addition to the Washington office, a staff of attorneys is maintained
    in field offices throughout the United States and Puerto Rico, principally
    to carry out the litigation responsibilities of the Department.
    23
    LITIGATION DIVISION
    This Division, created during the year by the merger o£ the Divisions of
    Trial Litigation and Administrative Legal Services, Supreme Court and
    Appellate Litigation, and Employees’ Compensation, is charged mainly
    with the Department’s litigation and quasi-litigation responsibilities.
    These functions are performed chiefly in connection with the enforcement
    of wage-hour legislation (Fair Labor Standards Act and the Walsh-Healey
    Public Contracts Act), workmen’s compensation legislation (Federal Employees’
    Compensation Act, the Longshoremen’s and Harbor Workers’
    Compensation Act, the District of Columbia Workmen’s Compensation
    Act, and related statutes), and maritime safety legislation (Public Law
    85-741, 71 Stat. 835).
    Wage-Hour Litigation
    Trial Litigation
    A record number of cases, 1,607, were instituted this year under the Fair
    Labor Standards Act and the Walsh-Healey Public Contracts Act. Of
    these, 1,469 were civil actions (1,2.19 contested and 2.50 for consent orders).
    It was necessary to bring 40 contempt proceedings to enforce injunctions
    previously obtained. Forty-eight criminal prosecutions were instituted,
    resulting in fines totaling $131,811. Thirty-six administrative enforcement
    proceedings were brought under the Walsh-Healey Public Contracts
    Act. Over 1,500 cases of all types were completed during the year.
    More than $1,000,000 in back wages was recovered for several thousand
    employees as a result of litigation activity—$188,000 under the Walsh-
    Healey Act and the balance under the Fair Labor Standards Act. Most
    of these sums were recovered in 140 contested injunction cases in which
    monetary relief was sought on behalf of underpaid employees as authorized
    by the 1961 amendment to the Fair Labor Standards Act. The number of
    such cases shows an upward trend.
    Appellate Litigation
    During the fiscal year, 41 briefs were filed in appellate proceedings—40
    under the Fair Labor Standards Act and 1 under the Walsh-Healey Public
    Contracts Act. Of these, two were filed in the Supreme Court in opposition
    to petitions for writ of certiorari and the rest in the U.S. courts of appeals.
    Twenty-one appellate decisions were rendered under these statutes. The
    Department’s position was upheld in 16 and rejected in 3. In the remaining
    two, the Department was successful in part.
    As usual, most of the FLSA appeals were concerned with questions of
    coverage and exemption. Among the more important cases on the act’s
    coverage was Bear Creek Mining Co. v. Wirt^, 317 F. id 67 (C.A. 1), in which
    the act was held to cover prospecting operations for a large copper company,
    despite uncertainty as to whether any ore would ever be found or produced,
    24
    and the many years that might elapse before actual mining could be started,
    if ever. The court found “that exploration of new sources of supply is
    normally a continuing need’’ of the mining industry and is for that reason
    “closely related’’ and “directly essential” to the production of ore within
    the meaning of the act.
    In another case, Wirtz v. Hello L. Peer Co., 314 F. 759 (C.A. 4), the act
    was held to cover the construction of a diversion channel, built as part of a
    concededly covered dam and reservoir project, but chosen over other
    alternatives in order to prevent the main project from flooding local college
    lands. The court ruled that, whatever the reason for choosing a particular
    submersion pattern, one or another pattern was necessary for the completion
    of the overall project and the alternative chosen therefore shared in the
    covered status of the overall project.
    The act was held to extend also to a night watchman employed on a
    project for construction of a city street carrying a sunstantial amount of
    interstate traffic, in Goldbergv. P & L Equipment Co., 311 F. id 88 (C.A. 5),
    and in Willmark Service System, Inc. v. Wirtz, 317 F. id 486 (C.A. 8), it
    was held to extend to the employees of a “ shopping service” with a nationwide
    clientele—specifically the “shoppers” employed in branch offices
    who visited the local retail shops of their employer’s customers to check on
    the honesty and efficiency of the sales clerks, and sent their reports to the
    employer’s out-of-State main office.
    A number of the act’s exemption provisions were the subject of judicial
    interpretation. In the Willmark decision, the retail exemption was held
    not to apply to the “shopping service” since Congress by the 1949 amendment
    “had no intention to broaden the fields of business enterprise to
    which the exemption would apply” and “Willmark, rather obviously,
    does not qualify as an establishment ‘ plainly and unmistakably’ within
    the terms and spirit” of the exemption. In Wirtz v. DuMont, 309 F. id
    151 (C.A. 4), the claim of an auto wrecker to be within the retail exemption
    was rejected on the ground that his sales of salvaged automobile parts to
    repair shops were “sales for resale” within the meaning of the act. In
    Wirtz v. Atlanta Life Insurance Co., 311 F. id 646 (C.A. 6), the exemption
    for outside salesmen was held not to apply to insurance supervisors who
    spent more than 10 percent of their workweek in routine office work not
    connected with their own outside sales, even though they spent most of
    their time accompanying their salesmen on outside duty. The agricultural
    exemption was held, in Wirtz v. Jackson & Perkins Company, 311 F. id 48
    (C.A. 1), to apply to the storage employees of a nursery distributor when
    handling stock grown on the employer s own farms, however distant, or
    on the farms of the employer’s wholly owned subsidiaries, or when handling
    stock acquired by emergency purchases to meet temporary shortages, but
    not when handling stock purchased by the employer from contract growers.
    The exemption in section 7(c) for the first processing of dairy products
    was held, in Yogurt Master, Inc. v. Goldberg, 310 F. id 53 (C.A. 5), certiorari
    denied 371 U.S. 971, not to apply to the manufacture of dairy products from
    25
    concentrated skim milk, since concentrated skim milk is itself a processed
    product.
    The question of compensable work time was again in issue in two cases.
    In Aeromotive Metal Products, Inc. v. Wirtz, 311 F. id 72.8 (C.A. 9), a 15-
    minute rest period was held to be compensable even though the employees
    were free to spend this period in such activities as they might desire and the
    interruption had not in fact increased production or reduced absenteeism.
    The court of appeals ruled that since the time was involuntarily spent at or
    near the plant and that since the rest period of such short duration was
    “not under such conditions as would permit the employees to make
    beneficial personal use of this time,” the trial court had properly concluded
    that the interruption of work was predominantly for the benefit of the
    employer. Similarly, in the Willmark case discussed above, frequent but
    irregular intervals of idle time spent by the * ‘ shoppers” between assignments
    were held to be compensable on the ground that such so-called “free time”
    forced on the employees during their workdays was “fortuitous and of no
    use or benefit” to the employees.
    In another case, it was held that employees are entitled to compensation
    in accordance with the requirements of the act even if there is an understanding
    that pay is at the discretion of the owner of the business. The
    court ruled, in Wirtz v. Leonard, 317 F. zd 768 (C.A. 5), that “the crucial
    question is not whether the work was voluntary, but rather whether the
    [claimant] was in fact performing services for the benefit of the employer
    with the knowledge and approval of the employer . . . .”
    A procedural point of considerable importance in the enforcement of the
    FLSA was determined in Wirtz v. B.A.C. Steel Products, Inc., 31Z F. zd 14
    (C.A. 4). It was held in that case that the defendant employer was not
    entitled in pre-trial proceedings to have the Secretary produce the statements
    given by employees or former employees to the Department’s investigators.
    The decision stressed that the “average employee involved in
    this type of action is keenly aware of his dependence upon his employer’s
    good will” and concluded that “only by preserving their anonymity can
    the government obtain the information necessary to implement the law
    properly.”
    There were two appellate decisions under the Walsh-Healey Public
    Contracts Act. While that statute refers to Government contracts for the
    “furnishing of materials, supplies, articles, and equipment,” it was held,
    in United States v. Stocks Lincoln-Mercury, 307 F. zd z66 (C.A. 10), to be
    applicable to a contract for the furnishing of both materials and services,
    where the charges made for the materials were substantially greater than
    those for the services. In the same case, the court ruled that it was no
    defense that the employer had relied on a contrary opinion of a Department
    field supervisor. It held that only the opinion of the Secretary or the
    Wage-Hour Administrator can have protective effect under the Portal-to-
    Portal Act. In a second case under the Walsh-Healey Public Contracts
    Act, United States v. New England Coal & Coke Co., 16 WH Cases 11 (C.A. 1),
    26
    it was held that a regular dealer is not responsible for compliance with the
    act by his suppliers, where the supplies (coal) were not delivered directly
    to the Government, but were sent to and commingled with the regular
    dealer’s general stockpile from which deliveries were made to other customers
    as well as to the Government.
    Employees’ Compensation
    In the area of employees’ compensation, the principal function of the
    Division is to render legal services to the Bureau of Employees Compensation
    in the administration of the several Federal workmen s compensation
    statutes. These statutes provide benefits to employees and their families
    in the event of injury or death occurring in the performance of duty. Approximately
    3% million workers are covered—zY million employees of the
    Federal Government and i million employees in private enterprise, of
    whom 300,000 are private employees in the District of Columbia and 350,000
    are longshoremen, ship repairmen, and other maritime workers.
    The claims of the Federal employees are governed by the Federal Employees’
    Compensation Act. In this program, the Division defends the
    administrative decisions of the Bureau in appeals taken by the claimants to
    the Employees’ Compensation Appeals Board. The Division participated
    in 310 such appeals in the fiscal year. With respect to claims of other
    employees, under the several Federal compensation statutes, the Division,
    in conjunction with the Department of Justice, defends the administrative
    adjudications of the BEC Deputy Commissioners when these decisions are
    challenged in the courts by either party. The Division participated in 61
    such suits in the fiscal year. Significant court decisions obtained in this
    field follow.
    1. The Longshoremen’s and Harbor Workers’ Compensation Act was
    held to cover an injury sustained by an employee while working on land
    beneath a vessel drawn up on a marine railway for repairs. Holland v.
    Harrison Brothers Dry Dock and Repair Yard, Inc., 306 F. zd 369 (C.A. 5).
    z. An employee’s injury, incurred while on the way home to continue
    his work there, was held to have arisen out of and in the course of his
    employment, where the employer knew that the claimant’s duties required
    him to work after hours. American Mercury Insurance Co. v. Theodore Britton,
    314 F. zd Z85 (C.A.D.C.).
    3. In the case of an employee found dead at the top of a stairway at the
    construction site where he worked, it was held that the Deputy Commissioner
    could properly conclude that the death was due to exertion associated
    with his employment and was therefore compensable. Harry Alexander,
    Inc. n . Charles Einbinder (C.A.D.C.), decided March 8, 1963 •
    Another function of the Division in this field is to supervise the prosecution
    of subrogation actions against third persons whose negligence has
    caused the injury or death of a Federal employee for which the United
    States has paid compensation under the Federal Employees Compensation
    27
    Act. These actions are designed to obtain reimbursement for the compensation
    so paid. During the fiscal year, a gross recovery of $3,0x2.,630.18 was
    obtained. After deducting the expense of recoveries, a net amount of
    $1,2.07,969.16 was available for offset against compensation paid or payable
    by the United States to the employees or their dependents.
    Other Functions
    Among other litigation-connected functions of the Division is the furnishing
    of legal services to the Bureau of Labor Standards in connection with
    its enforcement of the maritime safety and health program under the Longshoremen’s
    and Harbor Workers’ Compensation Act, through formal
    administrative proceedings, civil actions, or criminal prosecutions. This
    function was placed in the Division in the latter half of the year. One
    formal administrative proceeding has since been instituted. It was concluded
    upon the employer’s admission of the violations charged and his
    undertaking to comply in the future.
    The Division is also charged with the legal functions relating to the
    administrative settlement under the Tort Claims Act of claims against
    the Government arising from acts of Department employees within the
    scope of their employment. In the fiscal year, 59 cases raising potential
    claims against the Government were reviewed. Seven claims were filed,
    and six recommendations made for settlement.
    INTERPRETATIONS AND OPINIONS
    The Division of Interpretations and Opinions renders legal services in
    the area of labor standards, manpower services, unemployment compensation,
    veterans’ reemployment rights, and administrative law.
    A primary function of the Division involves interpretations of the Fair
    Labor Standards Act, the Walsh-Healey Public Contracts Act, the Contract
    Work Hours Standards Act, the Federal Employees’ Compensation Act,
    and the Longshoremen’s and Harbor Workers’ Compensation Act. During
    the 1963 fiscal year, the vast majority of the interpretative opinions rendered
    in the labor standards area pertained to the Fair Labor Standards Act.
    A smaller but substantial number had to do with the new Contract Work
    Hours Standards Act. In addition, several interpretative bulletins were
    revised and considerable work was done toward revision of others in anticipation
    of the new overtime provisions which became operative September
    3, 1963, affecting newly covered employees under the Fair Labor Standards
    Amendments of 1961.
    The past year saw a substantial broadening of manpower service activities,
    primarily in the areas of training and retraining under the Manpower
    Development and Training Act and the Area Redevelopment Act. Assistance
    was given to departmental bureaus by way of legal opinions and the
    drafting of contracts and agreements which were entered into by this
    28
    Department and various agencies throughout the country to carry out our
    expanded responsibilities in the manpower field.
    With respect to the area of foreign labor, the Division engaged in a multitude
    of activities including furnishing counsel at various wage rate hearings
    conducted in the discharge of the Department’s Immigration and Nationality
    Act functions. In the same general area, staff attorneys participated
    in the development of revised procedures for the implementation of the
    Secretary’s certification authority with respect to the admission of alien
    workers.
    Litigation flowing from foreign labor programs was of special interest
    again in the fiscal year 1963. The “commuter” alien situation along the
    Texas-Mexico border led to the institution of a private suit by the Texas
    State AFL-CIO challenging the validity of the system whereby aliens admitted
    to the United States for permanent residence are permitted to reside
    in Mexico while crossing the border daily to work in the United States.
    It was alleged that these “commuters” are in this manner able to undercut
    the wages and working conditions of resident American labor. While
    the Texas State AFL-CIO’s action was dismissed in the U.S. District Court
    for the District of Columbia, the union has filed notice of its intention to
    appeal that decision.
    In a case which arose under the Mexican labor program, a landmark
    decision upholding the Secretary’s broad authority under the adverse effect
    provisions of Public Law 78 was rendered by the U.S. District Court for the
    Southern District of California. Limoneira Co., et al. v. et al. represented
    a basic challenge to the action of the Department in establishing
    statewide adverse effect wage rates for Mexican agricultural workers.
    The court’s holding in support of that action is in the process of being
    appealed by the farmers who filed the action.
    Noteworthy activities in the employment service field included legal
    assistance in the establishment of policies and regulations designed to
    assure that the facilities of the nationwide system of public employment
    offices are made available to all people, without regard to race, creed, or
    color.
    Federal legislation in the field of unemployment compensation enacted
    during the past year included the omnibus bill to make permanent improvements
    in the coverage, benefit, and financing provisions of the Federal-State
    unemployment compensation system, amendments to the provisions relating
    to the ceiling on grants to States for unemployment insurance administration,
    adjustments of the Federal unemployment tax rates, and extension
    of the period within which States can obligate funds made available under
    section 903(c) of the Social Security Act. Regulations and the form for
    Federal-State agreements to implement the worker assistance provision of
    the Trade Expansion Act of 1962. were drafted and assistance was provided
    by this Division in the preparation of procedures.
    Proposed and enacted legislation amending the unemployment compensation
    laws of 47 States was reviewed and commented on during the year.
    711—471—64- 3 29
    Several serious questions were raised as to whether those State laws or
    proposals met the requirements of Federal law. These and other important
    legal issues were analyzed and advice was rendered with respect to the
    legal problems involved.
    In the discharge of its responsibility to assure that the Department
    complies with the provisions of the Administrative Procedure Act and the
    Federal Register Act, the Division assisted in the drafting and arranged
    for the publication in the Federal Register of 196 documents. Sixty-three
    of these were in the nature of amendments to the Code of Federal Regulations.
    Among the published documents were minimum wage orders under the
    Fair Labor Standards Act for all of the industries in Puerto Rico. Legal
    services were provided in connection with the issuance of tentative and
    final prevailing minimum wage determinations under the Walsh-Healey
    Act for the electric lamp, electronic equipment, scientific and laboratory
    instruments, and pump and compressor industries. The Division provided
    such services in connection with the tentative determination for the conveyors
    and conveying equipment industry. Legal services were furnished
    in connection with the final determinations and actions for judicial review
    of the motors and generators and machine tools industries. The Solicitor’s
    Office also represented the Department in four hearings held under other
    rule-making provisions of the Fair Labor Standards Act.
    More than 100 legal opinions relating to veterans’ reemployment rights
    were prepared or reviewed during fiscal 1963. A large number of cases
    were referred to the Justice Department for litigation involving claims
    arising under reemployment laws. The 1961 amendments to those laws
    were interpreted, and proposals for further amendments were prepared.
    In addition to this work, a comprehensive legal guide and digest of all court
    decisions and departmental opinion notes in this field was prepared for
    publication.
    WAGE DETERMINATIONS
    The Division of Wage Determinations performs the duties with which
    the Secretary of Labor is charged by the Davis-Bacon Act, related statutes,
    and Reorganization Plan No. 14 of 1950. The Division predetermines
    minimum wages to be paid laborers and mechanics under contracts subject
    to the Davis-Bacon Act and related prevailing wage statutes. These
    predeterminations reflect the wages found to be prevailing in the city,
    town, village, or other civil subdivision of the State in which work is to
    be performed. The Division also handles coordination and enforcement
    functions vested in the Secretary by Reorganization Plan No. 14 of 1950,
    the purpose of which is to achieve coordination of administration and
    consistency in the enforcement of minimum wage and overtime statutes
    covered by its provisions.
    Also of continuing significance in terms of the Division’s responsibilities
    was enforcement of the Contract Work Hours Standards Act, enacted in
    30
    fiscal 1962.. In general, this act replaces the Eight-Hour Laws and provides
    a uniform requirement of overtime compensation at time and one-half the
    basic rate for hours worked over 8 in a day or 40 in a week. The act, in
    addition to covering contracts of the United States which may involve
    the employment of laborers and mechanics, also covers contracts which
    by law are required to include wage rates predetermined by this Department.
    Excepted, however, are projects where the Government’s only
    assistance is in the nature of a loan guarantee, or insurance. This refers
    to Federal Housing Administration insured housing. Contracts of the
    Commodity Credit Corporation and the Tennessee Valley Authority have
    been, pursuant to the intent of the Senate as stated in a committee report
    on the bill, exempted in regulations issued under section 105 of the act.
    Construction contracts under $1,000 have been exempted from the Contract
    Work Hours Standards Act.
    The enactment of the Public Works Acceleration Act provided additional
    funds for construction of public works on an accelerated basis. Passage
    of this act substantially increased the Division’s workload. To further
    effectuate the purposes of this legislation, the Division gave priority to
    such requests, issued countywide determinations for use by any agency
    constructing projects under the act, and extended the validity period of
    such determinations to no days.
    The Division issued 46,397 wage determinations during fiscal year 1963.
    A total number of 46,038 items of correspondence were issued in connection
    with these wage determination matters.
    The Division opened 1,478 enforcement cases. A total of 1,631 cases
    were processed to completion, a record yearly high. In those cases involving
    serious violations of the various statutes within the scope of
    Reorganization Plan No. 14 of 1950, ineligibility sanctions were imposed
    against 10 contractors (firms and individuals). As a result of enforcement
    actions, more money was collected for more employees than in any previous
    year; restitution totaling $548,843.96 was secured for 5,1x8 laborers and
    mechanics.
    The Division continued during the year the publication of its series of
    “all agency” memoranda and Davis-Bacon Act opinions with respect to
    coverage problems and related matters. These memoranda and opinions
    aided in promoting consistency in the enforcement of statutes within the
    purview of Reorganization Plan No. 14 of 195°- addition, the Division
    issued a large number of interpretations and opinions to contractors and
    employees advising them of their rights and responsibilities under these
    statutes.
    DIVISION OF LEGISLATION
    The recent reorganization of the Solicitor’s Office resulted in a realignment
    of the duties and responsibilities of the Legislation Division. As
    now constituted, there are five areas of responsibility in the Division
    31
    legislation, labor-management relations and general legal services, hearing
    examiners, decision writing, and research, analysis, and reference.
    The legal functions of the Department relating to pending and proposed
    legislation are discharged through attorneys in the Legislation Division.
    The activities of the staff in the preparation of legislative proposals,
    testimony, analyses, explanatory statements, and other legislative materials
    for the Secretary and other Department officials assumed special importance
    during the second session of the 87th Congress and the first session of the
    88th Congress. It culminated in the enactment of several “top priority”
    items in the Administration’s legislative program.
    The Department has direct responsibility for administering one of the
    proposal s which was enacted into law—the EquaI Pay Act, Public Law 88-3 8.
    It also assumes vital areas of responsibility under the Trade Expansion
    Act, Public Law 87-794, and the Public Works Acceleration Act, Public
    Law 87-658. Under the Public Works Acceleration Act, the Secretary of
    Labor is responsible for determining legally what areas are eligible, on
    the basis of employment studies, to receive Federal assistance on public
    works projects. The Trade Expansion Act will enable this country to
    increase its exports and provide adjustment assistance for workers adversely
    affected by increased imports.
    An important Administration measure which was the subject of congressional
    hearings during the 1963 fiscal year is the Youth Employment
    Act. The purpose of this proposal is to provide healthful employment
    for youths now unemployed and at the same time provide through State
    and local governments useful work experience and training opportunities
    for unemployed young men and women so that their employability may
    be increased.
    The Solicitor’s Office prepared testimony for the Secretary’s use during
    congressional hearings on the President’s tax cut and tax reform program.
    At other hearings on the proposed extension of the Mexican labor program,
    the Department recommended certain safeguards to provide benefits to
    domestic migrant workers similar to those accorded Mexican nationals.
    The Solicitor testified at hearings on proposed amendments to the Davis-
    Bacon Act which would include fringe benefits in the determination of
    prevailing wages for laborers and mechanics on certain Government contracts.
    The legislative staff provided assistance to congressional committees,
    Members of Congress, and officials of the Department in connection
    with these and many other legislative items.
    The preparation of reports to congressional committees and the Bureau
    of the Budget expressing the Department’s views on proposed and pending
    legislation continued at a high level of activity during the 1963 fiscal
    year. Many of the reports involved extensive legal analysis and policy
    coordination with officials of the Department and other Government
    agencies. In addition, the staff maintained a continuing legislative
    reference service consisting of a daily digest of the Congressional Record,
    the preparation of other legislative reference materials, and the answering
    32
    of daily inquiries concerning the status and other aspects of legislative
    items.
    The labor-management relations and general legal services responsibilities
    include a broad range of complex and controversial statutes and programs
    which are not administered by the Department, but on which the Secretary
    of Labor, as the top labor official in the Government, offers advice and
    counsel to the President and the Congress. Prominent among these statutes
    and programs are the Taft-Hartley Act and the Railway Labor Act. The
    legal issues which arise in this area, in addition to a large body of specialized
    labor relations laws, involve the broadest range of subjects, since they are
    determined by the problems which may face the Secretary of Labor at any
    given time.
    An important function of the attorneys engaged in this activity is to
    provide advisory legal services to the Office of the Secretary and other
    offices and bureaus of the Department not otherwise serviced. Indicating
    the high level of activity of this function and the legislative function, a
    total of 72.1 analyses, memoranda, and orders, 777 letters for the Secretary’s
    signature, and 1,817 letters for the signature of the Solicitor were prepared
    during the fiscal year. In addition, the staff performed other legal functions,
    such as reviewing contracts entered into by the Department.
    The Division drafted standards of conduct for employee organizations
    and a code of fair labor practices, which implements Executive Order 10988
    concerning employee-management relations in the Federal service. It
    also drafted rules for the nomination of arbitrators under section n of the
    order. The Division continues to furnish legal advice on the application
    of the Executive order and its implementing documents.
    The hearing examiners held 55 hearings during the fiscal year pursuant to
    various laws administered by the Department of Labor. Most of these
    hearings, 44, involved alleged violations of the Walsh-Healey Public
    Contracts Act; 36 decisions were rendered in these cases. Three hearings
    involved the determination of prevailing minimum wages under the Public
    Contracts Act. Eight other hearings were conducted pursuant to the
    Davis-Bacon Act, the Fair Labor Standards Act, and other labor standards
    statutes.
    In the area of decision writing, the staff provides legal assistance to the
    Employees’ Compensation Appeals Board in the adjudication of cases
    under the Federal Employees’ Compensation Act which have been appealed
    from the initial administrative decision of the Bureau of Employees’ Compensation.
    They prepare drafts of the opinions expressing Board decisions,
    furnish legal advice to the Board, and perform research assignments of a
    special nature on request of the Appeals Board or the Solicitor. During
    the year, a total of 306 cases were received for the preparation of opinions
    and 2.70 decisions were written. The average time between receipt of a
    case from the Appeals Board and the preparation of a decision was reduced
    to slightly in excess of 1 month, as compared with an average of approximately
    3 months which prevailed a few years ago.
    33
    Research, analysis, and reference is a new area of activity established
    during the recent reorganization of the Solicitor’s Office. Its function is
    to review the past work of the Office of the Solicitor, and to prepare the
    appropriate analytical and reference systems and necessary research materials
    so that attorneys in the Office will have only to research the system instead
    of the individual opinions, interpretations, determinations, and decisions.
    The purpose of this program is to conserve the attorney’s time without
    sacrificing accuracy, substance, thoroughness, and completeness. During
    fiscal year 1963, the staff was engaged in preparing a “Legislative History
    of the Fair Labor Standards Amendments of 1961,” a digest of key opinions
    rendered in the past by the Solicitor on the Davis-Bacon and related acts,
    digests of current Solicitor’s opinions in all areas, and reports and miscellaneous
    papers.
    DIVISION OF LABOR-MANAGEMENT LAWS
    The principal work of this Division consists of rendering advice to the
    Bureau of Labor-Management Reports1 in connection with responsibilities
    of the Department under the Labor-Management Reporting and Disclosure
    Act of 1959, supervising the Department’s legal lunctions under that act,
    and providing legal services to the Office of Welfare and Pension Plans1
    with respect to the Welfare and Pension Plans Disclosure Act.
    During the year, 160 cases were referred to the Solicitot by the Bureau of
    Labor-Management Reports for possible legal action under the LMRDA.
    Civil action was instituted in the Federal district courts in 2.5 cases after
    analysis and consideration. Sixty-seven cases were transmitted to the
    Department of Justice with recommendation for criminal prosecution.
    The Division, through which all of the Department’s legal enforcement
    activities under the act are performed and coordinated, participated during
    the year in 10 defensive actions brought against the Secretary in Federal
    and State courts. The Division also participated in one U.S. Board of
    Parole hearing where the petition for a certificate of exemption from the
    prohibitory provisions of section 504 of the LMRDA was denied. Seventyfive
    private actions involving the LMRDA were also reviewed during the
    year to determine the effect, if any, such actions would have on the
    Secretary’s responsibilities under the act.
    Of the 2.5 civil actions instituted in the Federal courts, 15 involved
    violations of the election provisions of the act, 5 were instituted to enforce
    compliance with administrative subpenas issued by the Commissioner of
    Labor-Management Reports, 4 were instituted to compel the filing of
    required reports, and 1 civil action, the first filed by the Secretary under the
    trusteeship provisions of the act, was instituted to terminate an improper
    > On August 21,1963, the functions of the Bureau of Labor-Management Reports and of the Office of Welfare
    and Pension Plans were transferred to the Office of Labor-Management and Welfare-Pension Reports in
    the newly established Labor-Management Services Administration. The Division of Labor-Management
    Laws will continue to render legal services relating to these programs.
    34
    trusteeship. Twelve election cases, 9 of which were instituted prior to
    the start of this fiscal year, were favorably concluded with the entry of
    orders directing rerun elections under the supervision of the Secretary.
    Several of these cases resulted in important court decisions construing
    the provisions of the act relating to union officer elections. In one case,
    Wirtz v. Amarillo General Drivers, Local ^77, 2.14 F. Supp. 74 (N-D. Texas,
    1963), the district court held that section 401(e) of the act protected union
    members from being declared ineligible for union office because of lack of
    good standing, due to nonpayment of dues, where the delay in payment of
    their dues under a checkoff arrangement was caused by the failure of the
    employer to make timely deductions; and that a requirement in the union
    constitution that a member could not be a candidate for office without
    advance dues payment every month for a x-year period was so rigid as to
    be unreasonable. In Wirtz v. District Council No. 21, Brotherhood of Painters,
    zii F. Supp. X53 (E.D. Pa., 196X), it was held that a labor organization was
    not entitled to a jury trial in an action brought under the election provisions
    of the act. The Federal district court in Puerto Rico, in directing that a
    challenged election be rerun under the supervision of the Secretary, held
    that these provisions apply to labor organizations, union officers and
    representatives, and employers engaged in agricultural operations which
    affect interstate commerce. See Wirtz v. Union de Prabajadores Industria
    Azucarera Fase Agricola, Guayama, Inc., Local 804, Affiliated with the Packinghouse
    Workers’ Syndicate, District No. 9 of Puerto Pico, AFL-CIO, 52.LRRMXX13,
    46 L.C. ^17,994 (D.P.R., 196X).
    Of the five cases in which court orders were entered directing compliance
    with administrative subpenas issued by the Commissioner, three were filed
    during this fiscal year. In each instance the position of the Department
    regarding the scope of its authority to investigate and to issue subpenas
    in aid thereof was upheld. Of major significance is the decision in Wirtz v.
    Local 191, International Brotherhood of Teamsters, (D. Conn., 1963). The
    Federal district court, in directing the union to comply with the subpena,
    held that the Secretary’s broad investigatory authority granted by section
    601 includes the right to investigate union elections for possible violations
    and that this right is not limited by the provisions of section 40X; i.e., the
    Secretary in conducting an investigation or seeking to enforce a subpena is
    not required to show first that a complaint has been filed with him pursuant
    to section qox(a). This decision was subsequently affirmed by the Court
    of Appeals for the Second Circuit.
    Other decisions construing the Secretary’s authority to conduct investigations
    have held that the Secretary’s right to inspect union records includes
    the right to retain the original documents for a reasonable time and to make
    copies. See Wirtz v. Local 875, International Brotherhood of Teamsters, xi6
    F. Supp. 798 (E.D.N.Y., 1963) and Wirtz v. Flod Carriers' and Common
    Laborers’ Union, Local 502, 5XLRRMX133, 46 L.C. ^[17,851 (D.N.J., 196X).
    It has also been decided that the Secretary is authorized by section 601 to
    35
    investigate and to exercise his subpena power to determine whether a
    particular labor organization, officer, or employer is subject to the act’s
    requirements. See Wirt^ v. Electricians and Associates, Inc., 51 LRRM 2.675,
    46 L.C. 1[i7,937 CD. Minn.,
    In addition to the 15 civil actions filed under the LMRDA, 1 civil actions,
    the first cases to be filed under the WPPDA, were prepared in this Division.
    These actions seek to compel the administrators of certain welfare and
    pension plans subject to this act to comply with its reporting requirements.
    During the year, extensive legal assistance was provided the Bureau of
    Labor-Management Reports and the Office of Welfare and Pension Plans 1
    in the preparation of regulations, reporting forms and various technical
    assistance aids, and other publications. Under the Labor-Management
    Reporting and Disclosure Act, this included regulations relating to removal
    of officers (sections 401 (h) and (i)) and rerun of elections (section 401(b)),
    and union officer and employees reporting forms required by section 101.
    Regulations issued under the Welfare and Pension Plans Disclosure Act
    include: (1) a regulation relating to welfare and pension plans with less
    than 100 participants (sections 5 and 7); (1) a regulation covering the basic
    bonding requirements imposed by section 13 of the act; (3) a regulation
    with respect to the granting of exemptions from the bonding requirements
    of the act (section 13(e)); and (4) a regulation covering the meaning of
    section 13(c).
    The Division also compiled and prepared for publication the “Legislative
    History of the WPPDA of 1958, as Amended by Public Law 87-42.0 of 1961.’ ’
    This volume was published in January 1963. A comprehensive legislative
    history relating to the first six titles of the LMRDA was prepared for
    publication. It is anticipated that this volume will also be available to
    the public in the near future.
    During fiscal year 1963, approximately 1,650 written opinions were
    issued involving the LMRDA and 1,500 under the WPPDA. These opinions
    were given to the operating bureaus and to the public in connection
    with specific problems of interpretation arising under these laws. In
    addition, the Division gave approximately 2.5,000 oral opinions (with
    regard to the two laws within its responsibility) in response to telephone
    calls, informal conferences with bureau personnel, and requests from the
    public in connection with the administration and enforcement of the
    programs entrusted to the Division.
    INTERNATIONAL LABOR AFFAIRS
    During fiscal 1963, the Office of the Solicitor expanded its services to
    the Department in the area of international activities. This work was
    primarily the responsibility of a newly created office of Special Assistant
    1 See footnote 1 on page 34.
    36
    for International Labor Affairs. The work of the office may be divided
    into four categories.
    First, the office provided services in connection with the International
    Labor Organization. These included preparation of annual reports, position
    papers, memoranda of law concerning ratification of convention, and
    the like.
    Second, the office was engaged in providing legal advice in international
    economic problems. These were, first, activities under the Trade Expansion
    Act of 1962., both in connection with proposed tariff negotiations
    and in the promulgation of regulations for the administration of the worker
    assistance program. Second, they were in connection with the International
    Cotton Textile Agreement and its administration by the Department
    of Labor as one of five interested agencies. The former, insofar as
    the activities fell within the jurisdiction of the Department of Labor’s
    Committee on Foreign Economic Policy, represented legal services to that
    committee. The office also advised the Department’s representatives on
    the Trade Staff Committee, Trade Executive Committee, and Trade Expansion
    Act Advisory Committee.
    Third, the office assisted in the negotiation of a new contract with the
    Agency for International Development pursuant to which the Department
    of Labor will perform increased services in foreign assistance programs of
    the United States.
    Finally, the office provided legal services in connection with a labor
    dispute on the Great Lakes involving both Canadian and United States
    unions and employers which has seriously disrupted shipping on the Great
    Lakes and irritated relations between the United States and Canada.
    37

    MANPOWER ADMINISTRATION

    MANPOWER ADMINISTRATION
    The American labor force—its size, composition, and potential—has
    been a major interest of the U.S. Department of Labor since the agency’s
    establishment in 1913. Long the principal governmental source of statistical
    information in this field, the Department has concerned itself also with
    the development of work skills, the employment security of millions of
    our citizens, the matching of jobs and people, and a host of other considerations
    equally important to the Nation’s economic well-being and
    growth.
    Now, a new dimension has been added to the Department’s role in this
    vital area of economic life. Our modern technological age, along with a
    dramatically expanding population, has produced an entire restructuring
    of the Nation’s manpower resources. Involved are a labor force which in
    many respects is ill-prepared to meet the forces of economic change now
    sweeping across our industrial society, and an unemployment problem reflected
    in the idleness of 5 to 6 percent of the Nation’s work force throughout
    the period of the late 1950’s and early 1960’s.
    All that is involved was succinctly described by President Kennedy as
    “the number one domestic concern of the United States in the 1960’s.” In
    the resolution of that concern, the Labor Department is charged with a
    high degree of responsibility. It is attempting to meet that responsibility
    both through an intensification of some of its traditional services and the
    initiation and development of new programs assigned to it by the Congress.
    Two such programs—the Area Redevelopment Act of 1961 and the
    Manpower Development and Training Act of 1962.—have led to the establishment
    of a new arm of the Department of Labor which seeks to coordinate
    and expand all departmental efforts in the broad field of manpower
    utilization.
    In February 1963, all departmental functions relating to employment,
    unemployment, and the effective use of the Nation’s manpower in general
    were brought together under a new structure called the Manpower Administration.
    The Administration is built around a framework of three
    existing Department agencies: the Bureau of Employment Security, the
    Bureau of Apprenticeship and Training, and the Office of Manpower,
    Automation, and Training.
    41
    Under the direction of a Manpower Administrator, activities in the
    following areas of responsibility fall within the province of the Administration
    :
    • The Manpower Development and Training Act
    • Department of Labor functions under the Area Redevelopment Act
    • Worker adjustment assistance provisions of the Trade Expansion Act
    • Assigned functions under the Public Works Acceleration Act.
    • Migratory farm labor
    • The United States Employment Service
    • The unemployment insurance system
    • Support and development of apprenticeship programs
    • Civil defense and emergency planning functions of the Department
    of Labor
    In addition to these specific responsibilities, the Manpower Administration
    oversees and coordinates all manpower-related activities of the
    Department as a whole.
    The respective reports of the three basic agencies in the Manpower
    Administration follow.
    42
    BUREAU OF APPRENTICESHIP AND TRAINING

    BUREAU OF APPRENTICESHIP AND TRAINING
    During fiscal year 1963, the Bureau of Apprenticeship and Training
    carried out its responsibility of working with labor and management in
    establishing, improving, and expanding apprenticeship and other on-thejob
    training programs by industry. This was accomplished through 12.
    regional offices with representatives in each of the 50 States.
    A national coordinator was added to the BAT staff to work in the field
    of nondiscrimination in the employment of minorities as apprentices. The
    new staff member directed the efforts of the four industrial training advisers
    stationed in Chicago, San Francisco, New York, and Atlanta, and also
    served as industrial training adviser for the District of Columbia.
    An apprenticeship information center was opened in the District of
    Columbia as a pilot project for similar centers in the larger industrial and
    manufacturing cities. The centers are the joint function of the Bureau of
    Apprenticeship and Training and the Bureau of Employment Security.
    The Bureau of Apprenticeship and Training and local employment offices
    cooperate with local organizations in the establishment and operation
    of the centers, which are designed to inform and counsel youth on apprenticeship
    opportunities and to refer interested persons to employers and
    joint labor-management apprenticeship committees. Open to all persons
    interested in apprenticeship, the centers provide apprenticeship information
    suitable for youths, schools, guidance departments, minority groups,
    local unions, employer associations, and the general public. They also
    provide individual and group counseling for apprentice applicants, with
    emphasis on locating job openings in apprenticeable trades.
    The Bureau worked closely with the Advisory Committee on Equal
    Opportunity in Apprenticeship appointed by the Secretary of Labor. Composed
    of outstanding representatives of labor, management, education,
    minority groups, and the general public, the group is chaired by the Under
    Secretary of Labor in his capacity as Manpower Administrator of the Department.
    The committee has the responsibility of advising the Department
    on the development and promotion of more effective programs and
    policies in the broad area of equal opportunity in both apprenticeable and
    other occupations requiring high-level skills.
    The Bureau of Apprenticeship and Training has been assigned the responsibility
    for on-the-job training under the Manpower Development
    and Training Act of 1962.. Agreements have been made with employers,
    labor unions, associations, and public agencies to conduct training programs
    which use their facilities to train the unemployed, the underemployed,
    and youth in need of skills. The first on-the-job training contract under
    the act was executed early in March 1963. By June 30, 42. such contracts
    711-471—64- 45
    providing for the training of 1,6x7 persons in 117 occupations had been
    approved and 181 trainees had completed training in 6 occupations. Training
    costs for the 117 projects amounted to about $717,000 and wages paid
    to trainees by employers approximated $1,468,000. Contracts were executed
    with 30 employers, 1 employer association, x joint apprenticeship
    and training committees, and 4 unions.
    The Federal Committee on Apprenticeship, which serves in an advisory
    capacity to the Secretary of Labor, took an active part in the observance
    of the X5th anniversary of the national apprenticeship program in fiscal
    year 1963. At an all-day celebration in Washington, certificates of appreciation
    were presented to many individuals and organizations that had made
    a major contribution to apprenticeship over the X5 years. Displays featuring
    blowups of the national apprenticeship program commemorative
    postage stamp and the Department of Labor seal were arranged in department
    stores in n major cities. The stamp was issued August 31, 196X,
    in Washington, and first-day sales amounted to 1,147,554. The number
    of stamps printed totaled ixo million.
    During fiscal year 1963, the Federal Committee assumed a more active
    interest in the program of the Bureau. It held three regular sessions and
    arranged for task forces from its membership to concern themselves with
    specified areas of endeavor. Two of these task forces, one on defense
    contracts and the other concerning on-the-job training under the Manpower
    Development and Training Act, held meetings. The Federal Committee
    also recommended that a safety provision clause be included in all apprenticeship
    standards.
    The Bureau maintained close working relationships with State apprenticeship
    agencies to strengthen mutual cooperation. The Bureau provided
    a clearinghouse service to State agencies to disseminate informational
    material regarding both apprenticeship and training. A joint meeting of
    the Bureau and State apprenticeship agencies was held in January 1963,
    and it was agreed that a State-Federal Liaison Committee be formed to
    coordinate activity. The first meeting ot the committee was held May X3,
    1963.
    The joint Bureau of Apprenticeship and Training and American Vocational
    Association Committee held a meeting in Washington early in
    January 1963. Groundwork was laid for the establishment of similar
    joint committees on the local level.
    In the field of manpower mobilization, the construction task force project
    advanced from the pilot stage to the establishment of 18 additional project
    site locations throughout the country. These task forces are on call by the
    local Civil Defense in event of a national or natural disaster. At Waco,
    Tex., and Pueblo, Colo., the construction task force was coordinated with
    the Bureau of Employment Security’s preassigned team plan project that
    deals primarily with resource areas such as feeding and shelter programs.
    The six project areas in Florida were expanded to include additional construction
    trades.
    46
    There were excellent results in establishing working relationships between
    parole officers and local joint apprenticeship committees in California,
    Ohio, and Washington. A working relationship was also developed
    with the Bureau of Prisons, and a program was worked out to encourage
    vocational training staffs in correctional institutions to adopt the same
    criteria in their training programs as those in industrial apprenticeship
    programs.
    A total of 87 participants from x6 foreign countries were given an opportunity
    to observe apprenticeship and other training methods in 55 different
    industrial fields. Sixty-seven participants completed their training programs
    and returned to their home countries. A considerable number of
    these reported promotions or greater job responsibilities as a result of their
    training.
    During the year, the Governor of the Virgin Islands requested the Bureau
    to provide assistance to his government in establishing an apprenticeship
    law, creating an apprenticeship council, and inaugurating several apprenticeship
    programs. A Bureau representative was assigned to this project
    and all objectives were completed.
    The Bureau cooperated with the Bureau of International Labor Affairs
    and the Department of Commerce in recruiting qualified personnel to set up
    and man exhibits at trade fairs around the world. It sent technical personnel
    to the trade fair at Poznan, Poland, and to the Cyprus Trade Fair.
    The Chief of the Division of Review and Registration went to Caracas,
    Venezuela, and assisted the National Institute of Cooperative Education in
    establishing apprenticeship and training activities in that country. The
    Administrator of the Bureau of Apprenticeship and Training went to Geneva,
    Switzerland, where he participated in the Tripartite Technical Meeting for
    Printing and Allied Trades. A BAT staff member participated in the 7th
    session of the ILO Textiles Committee in Geneva.
    The Bureau prepared a nationwide survey of training in industry which
    will be published in fiscal year 1964. Some 8,000 schedules were coded
    and a preliminary report released. The report showed that approximately
    700,000 establishments employed 36 million workers—1.7 million of whom
    were enrolled in one or more formal training programs.
    A study of training and joint apprenticeship committee activity in the
    printing industry was completed and published. Entitled Compositor,
    Composing Room Machinist and Mailer Joint Apprenticeship Committee
    Project,” the study provides a summary and analysis of activities of joint
    apprenticeship committees and the extent of new process training of journeymen
    to update their skills.
    Articles were researched, written, and placed in a number of national
    publications, including Technology, the monthly review of training and
    education for industry published by the London, England, Times, and the
    Washington Report of the United States Chamber of Commerce.
    Two new Bureau publications were issued. These were ‘ ‘ First 10 Winners
    47
    of the Patterson Memorial Award” and “Observance of the 15th
    Anniversary of the National Apprenticeship Program.”
    In addition, the Bureau provided 14 national apprenticeship and training
    standards, one of which (on draftsmen) was revised; issued 7 reprints
    from international and national publications; and displayed Bureau exhibits
    on 19 occasions at State fairs and apprenticeship and training conferences
    and conventions. A total of 306,300 Bureau publications were distributed
    to associations, employers, unions, individuals, educational institutions,
    public libraries, State and Federal agencies, and foreign representatives.
    This was an increase of 45,300 over fiscal year 1961.
    Promotional activities of the field staff included servicing 189,000
    establishments, visiting 135,000 local industrial establishments or labor
    organizations, and making 8,556 public appearances, which included
    speeches, film showings, radio and television presentations, and related
    methods of creating public awareness of the need for the training of workers.
    There were approximately 2.00 showings of the Bureau’s film “Skills for
    Progress.”
    The work of the field staff was reflected in the establishment of 2.,307
    new programs during the year, 1,189 which were apprenticeship programs
    and 1,118, journeyman and other training programs. In addition,
    the field staff made 1,572. visits to obtain training opportunities for
    international participation.
    The Bureau encouraged industry to employ apprenticeship and training
    coordinators. During fiscal 1963, there were 44 national apprenticeship
    and training coordinators and 171 local coordinators employed.
    The Bureau launched a series of meetings to acquaint national apprenticeship
    and training coordinators and directors, international union officials,
    and representatives of national employer associations with the on-the-job
    training provisions of the Manpower Development and Training Act.
    The meetings were designed to focus discussion on the coordination of
    efforts by industry and government in increasing training opportunities
    for the unemployed, the underemployed, and those whose skills had become
    obsolete because of technological change.
    A total of 3,117 apprenticeship and training programs were examined.
    Registration actions numbered 1,678, including new programs, changes in
    programs, and cancellations. A total of 7,400 certificates were issued,
    including certificates of completion of apprenticeship and certificates of
    meritorious service honoring individuals or groups.
    48
    BUREAU OF EMPLOYMENT SECURITY

    Contents
    Page
    Introduction........................................................................................... 53
    Responsibilities................................................................................ 53
    Reorganization................................................................................. 54
    Program emphases........................................................................... 54
    Highlights........................................................................................ 5 &
    United States Employment Service..................................................... 57
    Placement and related services....................................................... 5 8
    Provision of manpower services..................................................... 66
    Employment service tools................................................. ............. 71
    Farm labor services............................................................................... 7&
    Domestic farm labor........................................................................ 77
    Foreign farm labor........................................................................... So
    Unemployment insurance..................................................................... S3
    State benefit financing..................................................................... S5
    State legislation............................................................................... S6
    Federal legislation........................................................................... S9
    Federal programs............................................................................. S9
    Research and information............................................................... 9°
    Administration................................................................................. 9Z
    Appendix tables..................................................................................... 94
    1. Selected employment service activities, U.S. totals for fiscal
    years 1956-63, by State for fiscal year 1963........................ 94
    1. Significant provisions in State unemployment insurance laws,
    June 30, 1963........................................................................... 95
    3. Claims, beneficiaries, amount, and duration of benefits under
    State programs, U.S. totals for fiscal years 1953-63, by State
    for fiscal year 1963...................................................................... 9^
    4. Subject employers, covered employment, and selected unemployment
    insurance financial data under State programs,
    U.S. totals for fiscal years 1953-63, by State for fiscal year
    1963............................................................................................... 100
    5. Selected data on unemployment compensation for Federal
    employees, U.S. totals for January-June 1955 and fiscal years
    1956-63, by State for fiscal year 1963.................................. IO2-
    6. Selected data on unemployment compensation for ex-servicemen,
    U.S. totals for October 1958-June 1959 and fiscal years
    1960-63, by State for fiscal year 1963.................................. 103
    7. Disqualifications under State programs, by issue, U.S. totals
    for fiscal years 1953-63, by State for fiscal year 1963............. 104
    51

    INTRODUCTION
    Responsibilities
    The Bureau of Employment Security is concerned with two major Federal-
    State programs—employment service and unemployment insurance. The
    first is concerned primarily with finding employment for workers that
    will utilize their highest skills and referring qualified applicants to employers
    with job openings; the second, with providing eligible workers
    partial replacement of wage loss caused by involuntary unemployment.
    With the passage of the Area Redevelopment Act and the Manpower
    Development and Training Act, the Bureau’s United States Employment
    Service was given added responsibilities with respect to assessing manpower
    needs and requirements, promoting manpower development and
    training, and assisting community groups in area redevelopment efforts.
    Both acts utilize the unemployment insurance machinery for disbursement
    of funds to workers being trained for work. Under the Trade Expansion
    Act, the Bureau was given not only training provisions but, for the first
    time, responsibility concerning relocation allowances for workers and
    readjustment allowances for workers who are affected adversely by actions
    taken under the act.
    The Bureau’s overall responsibilities with respect to employment service
    and unemployment insurance activities are to study and recommend any
    changes necessary in the programs to meet current or anticipated needs
    of wage earners and employers; to administer employment security programs
    as required by Federal law or other delegated authority; and to promote
    understanding and acceptance of the employment security system.
    As the Federal partner in the employment security system (consisting of
    the Bureau and affiliated State employment security agencies with their
    1,900 local public employment offices throughout the Nation), the Bureau
    is responsible for insuring proper and efficient administration by the State
    agencies of employment security programs; insuring conformity of State
    laws with requirements of Federal laws and regulations, and compliance
    of State administration with State laws which meet Federal requirements;
    encouraging States to improve State legislation and administration; and
    providing continuing technical assistance and interchange of experience
    and information.
    Also, the Bureau guides and assists State agencies in cairying out employment
    service and unemployment insurance activities and their responsibilities
    under recent legislation; provides labor, management, government,
    and the public with labor market and other information related to the
    operation of the employment security system; provides needed supplemental
    53
    foreign farmworkers and insures that their employment does not affect
    adversely domestic workers similarly employed; develops and maintains
    capability for meeting national emergency or other disaster needs for
    civilian manpower; and assists other nations to improve methods for
    achieving their employment security objectives.
    The Bureau has responsibility for the system of administrative financing
    of employment security programs and activities, including fiscal accountability.
    Administrative costs for the operation of the programs are met
    from congressional appropriations, with 100 percent “grants” for program
    administration apportioned by the Secretary of Labor to cooperating State
    agencies.
    In addition, the Bureau administers Federal unemployment compensation
    programs covering separated employees of the Federal Government and
    ex-servicemen; operates a system for clearing labor between the several
    States; maintains a public employment service for the District of Columbia;
    and performs activities related to the importation of foreign workers.
    Since the effectiveness of Bureau activities is measured best in the services
    provided to workers and employers through local offices of State
    employment security agencies, this report is not limited to the Bureau but
    includes both Federal and State efforts with respect to employment security
    programs.
    Reorganization
    On February 19, 1963, the Bureau of Employment Security, together
    with the Office of Manpower, Automation, and Training and the Bureau
    of Apprenticeship and Training, became a part of a new Manpower Administration
    in the Department of Labor. The Administrator of the Bureau
    was charged with responsibility in the field of manpower operations.
    The establishment of the new Manpower Administration by the Secretary
    of Labor reflected increased national concern with problems of unemployment
    and supported Bureau action, undertaken in fiscal year 1962., to
    strengthen its own structure and the capability of State employment
    security agencies to meet new manpower responsibilities.
    Program Emphases
    Program emphases of a major area are included in the appropriate sections
    of this report under employment service, farm labor, or unemployment
    insurance. Those activities described below affect all phases of the employment
    security program.
    As a result of additional funds made available by the Congress for the
    preceding year, the Federal-State employment security system began fiscal
    1963 with more staff resources in the public employment offices than were
    available in the preceding 10 years. To help State agencies train their new
    staff members and increase the competence of their other employees, the
    Bureau made staff development and utilization a subject of special emphasis
    in fiscal year 1963.
    54
    Through “ train-the-trainer” institutes, the Bureau guided State training
    supervisors in more effective training of operating supervisors and program
    technicians. It also encouraged greater use of out-service training by
    which university or other special college level courses, related to the
    technical field of individual participants, are selected and approved by the
    agencies and the Bureau as supplementing in-service training. Four conferences
    on executive leadership and management were sponsored by the
    Bureau in cooperation with four leading universities (University of
    California, Cornell, Michigan State, and University of Washington) for
    training State agency administrators and key members of their staffs and
    ii Bureau staff members. Discussions included problems affecting the
    employment security program. Course content of these conferences related
    general principles of leadership and management to employment security
    operations.
    In the organization and administration of personnel management programs,
    direct assistance was given to several States in revising job classification
    and compensation plans, and guide materials were developed for
    State agency use in installing effective plans for staffing variable workloads
    typical of the unemployment insurance program. Model position descriptions
    were distributed to States for use in upgrading minimum qualification
    standards.
    Other assistance in the area of management included preliminary work
    on development of a revised budgeting system; two important revisions in
    fiscal standards to require State agency administrators to exercise greater
    responsibility with respect to goods, facilities, and services supplied by
    other departments and to establish more specific requirements for agencies
    to meet in negotiating space for State or local offices; establishment of a
    management techniques-and-methods exchange; and procedures for assembling
    materials useful in analysis of State requirements for equipment
    replacement and development of ground rules for such replacement.
    Emphasis was placed also on removing discriminatory barriers in the
    hiring of staff, A revision was issued in the standards for a merit system
    of personnel administration requiring that each State employment security
    agency have specific prohibitions in its law or rules against racial discrimination
    in employment and that the law or rules provide for appeals by
    persons who allege discriminatory treatment.
    As a result of continued effort, segregated services were eliminated in
    19 of 2.6 local public employment offices which had been segregated at the
    beginning of fiscal year 1963. Geographically separate offices—maintained
    for serving nonwhite applicants—were closed, and offices having separate
    divisions within the same building were reorganized so that all applicants
    could be served without regard to race or color. At the end of the fiscal
    year, State agencies made firm commitments with respect to the remaining
    seven offices—to integrate the four divisional offices by July 15, 1963, and
    to consolidate operations of the three geographic offices with other
    operations on a nonsegregated basis by November 1963.
    55
    State and local employment offices were directed to comply fully with
    established policies of the United States Employment Service which prohibit
    any form of discrimination based on race, creed, color, or national origin
    in services provided to applicants, claimants, or others.
    In each regional office of the Bureau, a staff member was designated to
    work on minority group employment problems, and State agencies were
    urged to appoint minority group representatives.
    An employment-oriented pamphlet, “America Is for Everybody,” was
    published by the Bureau to commemorate the rooth anniversary of the
    Emancipation Proclamation.
    The Federal Advisory Council, representing employers, employees, and
    the public, was reconstituted by the Secretary of Labor in cooperation with
    the Bureau to consider manpower needs of the Nation and to recommend
    the appropriate role of the employment security system in meeting those
    needs.
    To broaden its perspective, the Bureau studied manpower trends,
    problems, programs, and policies of a number of European countries.
    The activities of the public employment offices were subjected to attack
    in fiscal year 1963 by means of letters written to Members of Congress by
    officials of many fee-charging employment agencies.
    Highlights
    Public employment offices made some 6.6 million nonagricultural placements
    in fiscal year 1963—the highest placement level since World War II,
    and z percent above the fiscal 196Z level, also a record year. Farm placements,
    however, at 7.9 million, reflected rapid advances in farm mechanization
    and were down slightly more than a million from the 9.0 million for
    fiscal 196Z.
    Permanent improvements in the unemployment insurance program were
    proposed by the Administration to fill gaps in protection afforded the
    unemployed and to make the program more responsive to changes in the
    economy.
    More than 9,000 were enrolled for training under the Area Redevelopment
    Act in fiscal 1963 and more than 30,000 under the Manpower
    Development and Training Act. By yearend, about 70 percent of the
    graduates under both programs had obtained employment, mostly in
    training-related occupations.
    Segregated services were eliminated in 19 of z6 local offices which were
    still segregated at the beginning of the fiscal year. Firm commitments
    were made for operating the remaining seven offices on a nonsegregated
    basis by November 1963.
    Interarea recruitment played a more crucial role in the labor market as
    demand increased for highly skilled and professional workers. By means
    of the professional office network, applicants’ qualifications and employer
    job orders are circulated speedily among the 114 offices of the network,
    56
    and those offices draw, as necessary, on resources of 1,900 local offices
    throughout the Nation.
    Public employment offices increased their counseling and testing activities
    to meet responsibilities under the Area Redevelopment Act and the Manpower
    Development and Training Act, needs of rising numbers of youth
    and women in the labor force, and problems of older workers displaced
    from long-time employment as a result of automation and technological
    change.
    Increased effort was made to use domestic farmworkers more effectively
    and to reduce need for supplementary foreign workers.
    Amendments to unemployment insurance laws of 10 States increased
    maximum weekly benefit amounts, but their effect was offset partially by
    a trend toward more difficult qualifying requirements in terms of higher
    required wages or more weeks of work and more stringent disqualifications.
    Public employment services tackled the school dropout problem on
    many fronts—by extending and improving counseling and placement
    services, giving priority to youth in training programs under the Manpower
    Development and Training Act, making wide use of the employmentoriented
    film “When I’m Old Enough, Goodbye!” and participating with
    community groups concerned with the problem.
    In fiscal year 1963, one out of three veterans was over 45 years of age.
    However, while comprising only 2.3.4 percent of male applicants in local
    employment offices, veterans accounted for 30.5 percent of all male nonfarm
    placements in fiscal year 1963.
    Experiments with machine processes for unemployment insurance data
    were designed to simplify and improve procedures and to provide more
    time for effective applicant interviewing and determination of benefit
    eligibility; for employment service, to expedite—by means of a telecommunications
    network—the interchange of labor supply and demand information
    among local employment offices.
    State unemployment insurance reserves increased for the second successive
    year. On June 30, 1963, they were 6.9 percent above the year-earlier level.
    More adequate State laws relating to unemployment insurance financing
    were enacted in 18 States.
    UNITED STATES EMPLOYMENT SERVICE
    The nationwide public employment service system, created by the
    Wagner-Peyser Act of 1933, celebrated its 30th anniversary in fiscal year
    1963. The United States Employment Service and affiliated State employment
    services, with their network of about 1,900 local employment offices,
    have facilities and resources which reach into all labor markets of the
    Nation. The system has been responsible for 3^5 million farm and nonfarm
    job placements in the 30 years of its existence.
    Matching men and jobs continues to be the primary mission of the
    employment service, but its responsibilities have been broadened. During
    57
    fiscal year 1963, program emphasis included not only improvement of basic
    placement functions but reorganization of metropolitan area local offices;
    job market services to youth; easing the impact of automation and technological
    change; manpower training under the Area Redevelopment Act and
    the Manpower Development and Training Act; labor market operations
    research; and assistance to State employment services in improving their
    administration and management functions.
    Fiscal year 1963 was the first full year of operation of the reconstituted
    United States Employment Service as an organizational entity. It continued
    to work with State employment services on the actual physical
    separation of employment service and unemployment insurance functions
    in local offices in major metropolitan areas and on the reorganization of
    these offices on an occupational-industrial basis. Improved services resulting
    from these changes were reflected in placements which increased by
    5.5 percent in the 55 largest metropolitan areas over the previous fiscal year
    as compared with a 1.9 percent increase for all local offices. Placements
    of professional workers rose 12. percent over the year.
    Under the Manpower Development and Training Act of 1962., the public
    employment service system was given primary responsibility for identifying
    training needs, supplying qualified trainees, and placing graduate trainees.
    In fiscal 1963, significant progress was made in initiating MDTA training
    projects.
    The area labor market information program was expanded to provide
    data needed by the Secretary of Labor in designating areas of substantial
    unemployment—a responsibility placed on him by the Public Works
    Acceleration Act of 1962..
    In the early 1960’s, young people were entering the labor market at the
    rate of 2. million a year and were experiencing ever increasing difficulty in
    finding jobs. The seasonally adjusted unemployment rate for youth under
    20 years of age was 16.0 percent in June 1963 as compared with 11.4 percent
    in June 1961. To deal with this problem, local employment offices stepped
    up their counseling, testing, job development, and placement services for
    young people and worked with school officials to strengthen the cooperative
    ES-school program.
    Progress in major program areas is described in the following sections.
    Placement and Related Services
    Placements
    In fiscal year 1963, public employment offices made some 6.6 million
    nonagricultural placements, the highest fiscal-year placement level since
    World War II. Nonfarm placements were 1.9 percent above the fiscal
    1962. level, also a record year. About 3.3 million nonfarm placements
    were made in the 55 major metropolitan areas, 5.5 percent more than in
    the preceding year. Among occupational groups, the professional and
    managerial category, with 247,500 placements, recorded the sharpest
    increase—11 percent. Small rises occurred in the clerical-sales, unskilled,
    58
    and service groups; a minor decline, in the combined skilled and semiskilled
    category. Among industry divisions, services, with about 1,557,000
    placements, showed the greatest gain—nearly 6 percent. Placements in
    trade, at 1,560,000, represented a 3.7 percent increase over the preceding
    fiscal year, while the number of construction placements, at 455,000,
    remained virtually unchanged. Other industry divisions (manufacturing,
    public utilities, and government) recorded small losses.
    Nonfarm placements in the United States by industry and occupation, fiscal years
    1962-63
    • •
    1963 1962
    Percent
    change
    1962-63
    Total placements 1_________________________________ 6,632,300 6, 506, 000 +1.9
    By industry:
    Construction.__ ____________________________________ 454, 900 454,100 +0.2
    Manufacturing______________________________________ 1,438,400 1,487, 900 -3.3
    Public utilities---------------------------------------------------------- 227, 200 233,800 -2.8
    Trade---------------------------------------------------------------------- 1, 560,300 1, 504, 900 +3.7
    Services------------------------------------------------------------------- 2, 557,300 2,416,100 +5.8
    Government----------- ------------------------------------------------ 232,300 242,600 -4.3
    Other---------------------------------------------------------------------- 162,000 166,600 -2.8
    By occupation:
    Professional and managerial----------------------------------------- 247, 500 220,900 +12.0
    Clerical and sales____________________________________ 1, 058. 600 1,037, 700 4-2.0
    Service-------------------------------------------------------------------- 2,145,200 2,091, 900 +2.5
    Skilled and semiskilled_______________________________ 1,245, 500 1,270,300 -2.0
    Unskilled and other__________________________________ 1,935, 500 1,885,200 +2.7
    1 Items may not add to total due to rounding.
    The United States Employment Service in collaboration with the
    California Department of Employment experimented with a labor inventory
    communications system. This project (LINCS) is designed to provide
    rapid long-distance transmittal of placement data and computer processing
    of these data for use in screening large numbers of employer job order
    specifications against worker qualifications, particularly in professional
    occupations. It seeks new and speedier methods of aiding, not replacing,
    human factors in worker recruitment, selection, and referral.
    A fully operational teletype network, linking nine California offices, was
    used to interchange labor supply and demand information. Experiments
    in the integration of this network with the automatic data processing
    phase were continuing at the end of the fiscal year. If the project proves
    successful, it will be expanded to other areas. In addition to increasing
    the timeliness and efficiency of placement operations, this system would
    provide a rapid means of work force mobilization in the event of a national
    emergency.
    Professional Placement Services
    With vastly increased demand for professional manpower and with
    shortages existing in supply, the employment service strengthened its
    professional placement service to help insure its best utilization. In fiscal
    year 1963, placements in professional and managerial occupations rose to
    147,500, compared with 110,900 in fiscal 1961.
    59
    Efforts were continued to reorganize employment offices in the 55 largest
    metropolitan areas to meet the needs of the professional and technical
    segment of the work force. In June 1963, professional and technical
    workers numbered 7.8 million and accounted for about 1 out of 8 persons
    in the labor force.
    Convenient, suitably equipped offices were established along industrialoccupational
    lines and were located in population centers to conform
    closely to employment patterns of professional, technical, scientific, and
    managerial persons. By the end of the fiscal year, an identifiable facility—
    either a separate professional office or a division of a “white collar’’ office
    serving professional, clerical, and sales occupations—was provided in 49
    localities.
    Accumulation of detailed information on the job content of professional
    occupations was started by USES in cooperation with State employment
    services. The information, which includes those jobs newly created by
    the changing patterns of industry, will be refined ultimately into comprehensive
    interviewing aids for use by local office personnel.
    Bureau and State employment service representatives contacted professional,
    business, and educational associations to acquaint them with the
    professional placement program, and services were made available, upon
    their request, to college officials in the placement of college dropouts and
    graduates. During the period September 1961 to August 1962., over 10,300
    students were placed in professional career jobs by the employment service.
    Interarea Recruitment
    With rapid changes in technology causing the obsolescence of some
    occupations and industries, while creating others, and with an increased
    demand for more and more highly skilled and professional workers, inter-,
    area recruitment played a more crucial role in the Nation’s labor markets.
    The professional office network at the end of the fiscal year consisted of
    1x4 offices. Speedy, direct communication, improved procedures, and an
    intimate knowledge of technological and professional occupations enabled
    the staff in those offices to make a significant contribution in this highly
    specialized placement field. The network circulated applicants qualifications
    and employers’ orders, as necessary, and drew on the resources of
    about 1,900 local offices throughout the Nation to provide needed services.
    Local employment offices made greater use of current labor supply information,
    developed by USES, in interarea recruitment for more intelligent
    direction of clearance orders and for positive (on-the-spot) recruitment in
    areas of labor supply.
    Convention placement service was provided for n national professional
    organizations with a total membership of more than iz8,ooo. Applicants
    served included political scientists, psychiatrists, social welfare workers,
    administrators, economists, statisticians, pharmacists, teachers, and
    anthropologists.
    60
    Minority Groups
    Procedures governing the treatment of discriminatory job orders from
    employers were revised to provide that such orders be reported to fair
    employment practice authorities lacking enforcement power as well as to
    those which have such power. Further, the Bureau directed State agencies
    to cooperate with such authorities by providing information relevant to
    fair employment practices, developed through employment security operations.
    The number of minority groups representatives appointed to State
    agency administrative staffs was increased from 9 to 2.4. These staff members
    are responsible for leadership and direction of the employment service
    program for minority groups, interpretation of that program to the community,
    and promotion of maximum utilization of minority workers.
    To stimulate increased entry of Negroes into occupations formerly
    denied them, the employment service participated in a series of regional
    conferences with presidents and executives of predominantly Negro colleges.
    The college officials were offered the assistance of the employment
    service in solving problems involved in the development of trained manpower
    to enter the new professional and technical jobs and in placing their
    graduates and students.
    To assure minority group members an equal opportunity to acquire
    training provided under Federal legislation, the employment service included,
    in its regulations and procedures governing the selection of trainees,
    specific prohibitions against selection and referral for training on the basis
    of race, creed, color, or national origin.
    The public employment service cooperated with the President’s Committee
    on Equal Employment Opportunity to insure compliance by Federal
    contract holders with the terms of Executive Order 1092.5 banning discrimination
    in employment with respect to such contracts, and also to promote
    equal employment opportunity through the Plans for Progress and the
    Union Program for Fair Practices. These two programs provide for the
    voluntary participation of employers and unions in furthering equal employment
    opportunity.
    Youth
    During fiscal year 1963, local employment service offices registered
    nearly 3.3 million youth under zz years of age and placed about 1.5 million
    in nonfarm jobs. They registered 134,000 more job applicants under zo
    years of age than in fiscal year 196Z.
    State agencies gave increased attention to improving the qualifications
    of staff to provide services, and standards were developed by the Bureau
    for use in selecting counselors and youth specialists. A State supervisor
    of youth services was appointed in each State to provide overall guidance
    to the youth program. Also, zo large metropolitan areas designated area
    coordinators of service to youth. Emphasis was given to out-service
    711—471—64- -5 61
    training of State agency staff in colleges and universities, and new training
    materials were developed by USES for use by State and local office staffs.
    An estimated audience of over 40 million viewed the employment-oriented
    film drama “When I’m Old Enough, Goodbye!’’ The film, directed to
    potential school dropouts, was developed by the Bureau in cooperation
    with the New York State agency. Available on loan through State employment
    services to schools, parent-teacher groups, and local TV stations,
    the film won an American Film Festival blue ribbon award. Some schools
    which showed the film reported a reduction of from 33 to 75 percent in
    dropout rates in the school term ended June 1963 as compared with the
    year before.
    Local employment offices had arrangements with local school systems
    in 47 States whereby the schools referred actual and potential dropouts to
    the offices or provided names of the young people. In the school year
    1961-62., more than 49,000 dropouts were registered by local employment
    offices in this special program, and nearly half of them were placed in jobs.
    Youths constituted about a fourth of all persons enrolled in training
    courses established under the Manpower Development and Training Act.
    Nearly half of all initial counseling interviews held in fiscal year 1963 were
    with youths. In the 1961-62. school year, employment service offices
    worked with seniors in 10,600 high schools, an increase over 1960-61 of
    more than 700 schools.
    In hundreds of communities, employment service representatives participated
    in community planning and action programs, such as apprenticeship
    information centers, career guidance and job clinics, summer jobfinding
    programs, services to youths paroled from correctional institutions, and
    work experience-education programs.
    Two demonstration projects to determine what could be accomplished
    by an allout effort to resolve youth employment problems in concert with
    community groups were begun in 1961 and continued in 1963, in Newark,
    N.J., and St. Louis, Mo. Preliminary indications were that significantly
    greater numbers of youths were using employment service facilities, and
    more were being placed in jobs. A booklet, “Youth in the St. Louis
    Labor Market,’’ was published in connection with the St. Louis project.
    It provides information about hiring patterns of youths; it should be useful
    to employment service and school counselors and to employers.
    A study of school dropouts in Detroit, Mich., begun in May 1961 by the
    Michigan Employment Security Commission and the USES in cooperation
    with the Detroit Board of Education, continued throughout fiscal year 1963.
    This study was designed to locate school dropouts from two city high
    schools having high dropout rates, to determine the cost and problems
    involved, and to provide appropriate employment services. The project,
    hopefully, will provide information to aid youths in making the transition
    from school to work.
    62
    Veterans
    The Bureau’s Veterans Employment Service, through its veterans employment
    representatives, cooperates with State employment security agencies
    to insure that special job placement services are provided for war
    veterans. The more than 2.1 million veterans in civilian life constitute
    about half of all men in the labor force.
    During fiscal year 1963, more than 1.5 million applications for work
    at local employment service offices were filed by veterans, and more than
    1.1 million nonfarm placements of veterans were made. While veterans
    comprised only 13.4 percent of male applicants, they accounted for 30.5
    percent of all male nonfarm placements during the fiscal year. This placement
    ratio was approximately the same as that prevailing in the previous
    few years, although veterans as a group were becoming older and were
    encountering employment difficulties. In 1963, one out of three veterans
    was over 45 years of age.
    Disabled veterans are given preference in job placement by employment
    service offices. Although this group accounted for only 37.1 percent of
    the 355,100 new job applications from male handicapped persons in fiscal
    year 1963, almost half (47.5 percent) of the 111,800 nonfarm placements of
    male handicapped workers were for disabled veterans.
    A sample survey taken during fiscal year 1963 indicated that veterans
    constituted more than a third of all men enrolled in courses established
    under the Manpower Development and Training Act of 1961.
    State veterans employment representatives made 4,650 visits to local
    employment offices during fiscal year 1963 to insure that veterans were
    receiving adequate employment assistance. Formal evaluations were
    made in about 1,450 of these offices to determine their effectiveness in
    providing employment services to veterans.
    Older Workers
    Increased employment service efforts on behalf of older workers in fiscal
    1963 resulted in more than 1,312.,400 nonfarm placements of workers aged
    45 years and over, an increase of 3 percent over fiscal 1962.. More than
    135,100 applicants aged 45 and over received counseling, an increase of 2.
    percent over fiscal 1961. In addition, group guidance sessions, staff clinics,
    and specialized “self-help” group sessions were used to assist older jobseekers
    in overcoming attitudes which interfere with successful job search
    or referral to training.
    Two employer institutes on employment of workers over 40 years of age
    were conducted by the Little Rock area employment office in cooperation
    with the local advisory council. USES provided technical assistance.
    The institutes gave employers an opportunity to learn from each other how
    best to utilize the skills and knowledge of unemployed older workers.
    A number o£ employers modified their hiring practices to employ more older
    workers as a result of these institutes.
    Special services provided in all States to workers facing age discrimination
    in employment included testing, job counseling, and selection and referral
    assistance in relation to both training and employment opportunities; and
    educational and informational efforts were focused on employers and community
    groups to change negative attitudes, correct misconceptions, and
    eliminate bias and prejudice in the hiring of older workers.
    The bulk of trainees under the Area Redevelopment Act were in age
    groups in which family responsibilities fall most heavily. Over threefourths
    were between 19 and 44 years of age. About 1 in 10 enrollees was
    45 years of age or older. Least represented among ARA enrollees were
    those under the age of 19; they constituted about 8 percent of the total.
    Among older trainees under the Manpower Development and Training
    Act program, nearly one-third were 3 5 years of age and over, while slightly
    more than one-tenth were at least 45 years of age. State employment
    security agencies urged employers to relax their age specifications so that
    more older workers could be referred to training projects with adequate
    assurance of job placement upon completion of courses.
    The Bureau and State employment security agencies initiated a study of
    employer attitudes and age restrictions in job orders in eight major cities
    (Indianapolis, Louisville, Baltimore, Kansas City, Albuquerque, Memphis,
    Houston, and Salt Lake City) during May and June 1963. The findings
    of the surveys will be available in the fall of 1963.
    Handicapped Workers
    The focus of employment services to the physically handicapped, mentally
    restored, and retarded during fiscal 1963 was on direct services to job
    applicants, improving relationships with cooperating agencies, job promotional
    activities with employers and labor organizations, and public
    informational and educational activities.
    State employment services received about 463,150 new applications from
    handicapped jobseekers—a 5 percent increase over the previous year—and
    made 171,415 placements. More than 5,000 of the new applicants were
    rehabilitated clients referred to the employment service by vocational
    rehabilitation agencies for placement help. During the same period,
    counseling service was provided to 164,300 applicants.
    Cooperation with the Vocational Rehabilitation Administration, the
    U.S. Civil Service Commission, and the Veterans’ Administration was an
    important phase of the employment service program to improve counseling
    and placement services to the handicapped in fiscal year 1963. The employment
    service staff of the Bureau and of the States also worked closely with
    the President’s Committee on Employment of the Handicapped and with
    State and local committees to develop a better climate for the placement
    of the handicapped.
    64
    Counseling and Testing
    Counseling and testing activities were accelerated as a result of programs
    under the Manpower Development and Training Act and the Area Redevelopment
    Act and because of the rising number of youths and women entering
    the labor market. About 1,2.18,000 individuals received counseling service
    in fiscal year 1963, nearly 50,000 more than a year earlier, and approximately
    x,300,000 applicants received testing services, 113,000 more than in the
    preceding fiscal year. The total in each instance was far higher than in
    any previous year.
    Increased attention was given to evaluation of the supervision of counseling
    and testing services. USES prepared comprehensive outlines for use
    in evaluation of the quality and quantity of these services at both State
    and local levels. In addition, Bureau staff reviewed counseling and testing
    activities in several States.
    To insure that high quality counseling service was provided at the local
    office level, approximately 630 State employment service counselors were
    enrolled in out-service training courses at universities during the fiscal
    year. Forty-six of the State and Territorial jurisdictions established, or
    were committed to establish, separate State civil service or merit system
    classification for counselors. The standards were developed by USES.
    USES provided procedures for use by State employment services in the
    counseling, testing, selection, and referral of prospective trainees under
    the Manpower Development and Training Act and the Area Redevelopment
    Act.
    Continued progress was made in preparation of a system to translate
    attributes of counseled applicants into the occupational groupings of the
    new “Dictionary of Occupational Titles” to make them more useful in
    counseling.
    Employer and Union Services
    The 1.5 million visits to nonfarm employers made by local employment
    office personnel in fiscal year 1963 represented the second highest total in
    10 years. In addition, more than z.i million telephone contacts were
    made with employers. About 975,000 employers used the placement
    facilities of the employment service during fiscal year 1963, compared with
    900,000 in fiscal 1962..
    To keep employment services geared to the needs of employers, USES
    and State employment services must keep pace with, and anticipate, the
    manpower aspect of technological developments and industrial changes.
    In fiscal year 1963, efforts were made to obtain from employers more
    comprehensive information on manpower problems resulting from skill
    obsolescence, and assistance was given in developing and implementing a
    system of “early warning” of impending technological changes. Cooperative
    relations were developed with local personnel groups to resolve
    significant community manpower problems.
    65
    The USES established an organizational unit during the year to develop,
    on both national and local levels, techniques and procedures to improve
    working relations with unions and to provide more effective service to
    union members. Representatives visited officials of eight international
    labor unions to describe the facilities and services available to their membership
    through the employment service and to encourage collaborative
    placement efforts.
    USES officials visited management executives of 3Z multistate companies
    and 34 national associations to help resolve manpower problems. Cooperation
    was extended to the Post Office Department, the Internal Revenue
    Service, and the General Services Administration in the development of
    programs to broaden and strengthen their working relationships with the
    public employment service. Arrangements were made for local employment
    offices to cooperate with community groups and employers to obtain
    work for 675 foreign students who needed summer employment in order to
    continue their education in this country.
    Provision of Manpower Services
    Automation and Technological Change
    The first results were obtained from special USES demonstration projects
    which were undertaken to reveal manpower problems resulting from
    automation and technological change, and the action phase of the projects
    was concluded by seven State agencies (Nebraska, Oklahoma, Minnesota,
    Wisconsin, Utah, New Jersey, and Colorado).
    These demonstration projects were aimed at improving the performance
    of the local employment service office in a labor market that appears to be
    changing at an accelerating rate. The projects dealt with mass layoffs as
    a result of automation; hard-core (2.6-week) unemployed in areas or industries
    where automation has had a large impact; lengthening layoff periods
    in seasonal industries; change in the nature of work and consequent shifts
    in occupations and entry jobs; and statewide efforts to alert local offices
    to specific local problems, small and large.
    In addition to providing guidance for these projects, the USES established
    a national reporting system to get early warning on nonseasonal layoffs of
    100 or more workers for more than 4 weeks, with emphasis on specific
    local office plans to meet the situation. Also, it requested State agencies
    to have job analysts and employer relations representatives provide warning
    of impending automation, and conducted special studies on manpower
    problems associated with automation and technological change, including
    experience of other countries, employer hiring policies, preferences and
    practices, employer efforts to cushion the impact of change on present work
    force, and impact of new devices and systems on managerial and supervisory
    occupations. It provided guidance for on-the-job training provisions of
    the Manpower Development and Training Act and the Trade Expansion
    Act.
    66
    From all these activities flowed a mass of data, operational and statistical,
    on which analysis was started. Preliminary findings indicated that (i)
    automation had cost jobs, sometimes in obscure, hard-to-trace ways, but
    especially in the drying up of entry jobs; (2.) purely defined, total automation
    had not happened although departments or processes had been automated;
    (3) use of automatic machines had accelerated as managers observed
    advantages in quality, pace, cost, elimination of human drudgery, possibility
    of small but economical production runs, and continuous machine use;
    (4) good management practices did cushion the shock of job loss for workers
    emotionally locked to a job; (5) skill levels did not change much, and
    current staff was used without much retraining; and (6) job loss fell in most
    cases to those least able to cope with it—frequently workers with onemachine,
    one-employer experience who had never been out of work before
    and were, in most cases, older and less educated than the “normal” jobseeker.
    These projects and related programs provided information about changes
    in jobs and occupations and gave guidance as to when and how the employment
    service should offer its services to workers displaced, or to be displaced,
    by automation and technological change or to those experiencing persistent
    unemployment.
    Manpower Development Through Training
    The Federal-State employment security system and vocational education
    agencies worked together in establishing institutional training projects
    under the Area Redevelopment Act and the Manpower Development and
    Training Act to provide occupational training for unemployed and underemployed
    persons who could not otherwise reasonably be expected to obtain
    appropriate full-time employment. The Area Redevelopment Act
    provides for training of workers located in redevelopment areas only,
    while the Manpower Development and Training Act is designed to assist
    unemployed workers regardless of locality. Another major difference
    between the two acts is that the maximum training time permissible under
    the ARA is 16 weeks compared with 51 weeks under the MDTA.
    Responsibilities of the Federal-State employment security system in
    implementing training provisions of the Area Redevelopment Act include
    area labor market analyses on which the designation of eligible areas is
    based, analyses of training needs, selection and referral of individuals to
    training, and payment of subsistence allowances to eligible trainees. It
    is responsible also for job development and for job placement of ARA
    trainees.
    Selection of individuals for ARA training involves two major considerations:
    Priority must be accorded those who are most disadvantaged in
    today’s labor market—the so-called “hard-core” unemployed—and consideration
    must be given to an individual’s capacity to benefit from the
    training and his probable ability to obtain employment and perform satisfactorily
    on the job upon completion of training. Employment services,
    67
    including counseling and testing, are used to select the best qualified
    individuals for ARA training. By the end of June 1963, State employment
    services had conducted nearly 55,000 screening and counseling interviews
    and had administered more than 18,000 aptitude and proficiency tests to
    prospective ARA trainees.
    More than 9,000 trainees were enrolled in ARA training courses in fiscal
    year 1963. Of these and the more than 3,000 trainees who were carried
    over from the previous fiscal year, nearly 9,000 completed their training
    during the year. About 70 percent of these graduates obtained employment,
    mostly in training-related occupations.
    During the fiscal year, 317 projects to provide ARA training to 13,900
    individuals were approved by the Secretary of Labor, bringing the total
    number of projects to 480 and the total number of trainees to 2.3,000 since
    the beginning of the program. By the end of June 1963, ARA training
    had been made available to eligible residents of 42. States, American Samoa,
    and Puerto Rico.
    During the year, USES, in cooperation with State employment services
    in Rhode Island, Indiana, Michigan, Pennsylvania, West Virginia, and
    Wisconsin, and six colleges and universities, started work on a followup
    study of a selected group of ARA graduate trainees. The study was designed
    to determine, for a group of training courses selected at random,
    the extent of improvement in the labor market position of the trainees,
    and to identify factors which contributed to the success of the training
    program. The study will be completed in the fall of 1964.
    Under the Manpower Development and Training Act, some 1,500 projects
    for about 57,700 trainees had been approved in 49 States, the District of
    Columbia, Puerto Rico, and the Virgin Islands by the end of fiscal year 1963.
    Allowance and training cost estimates for these projects totaled about $71
    million, according to preliminary reports, with nearly two-thirds earmarked
    for expenditure in fiscal 1964. Preliminary data indicated that by
    June 30, 1963, over 30,000 trainees, more than half of the approved trainee
    total, had already started training in about 1,075 projects.
    About 70 percent of the 6,300 trainees who had completed MDTA courses
    through mid-May had obtained employment as of June 30, almost wholly
    in training-related occupations. State employment services accounted for
    8 out of 10 job placements among these trainees.
    More than three-fifths of the MDTA trainees were men. With MDTA
    programs focused on meeting the needs of primary wage earners, over
    three-fourths of the men and about two-fifths of the women were heads of
    families or households. About three-fourths of the men obtained employment
    after completion of training, as compared with close to three-fifths
    of the women.
    Nearly half of the MDTA trainees were drawn from the ranks of the
    long-term unemployed, i.e., unemployed for 15 weeks or more. Nearly
    one-fifth of the trainees had been jobless for 5x weeks or more. Although
    the long-term unemployed had somewhat more difficulty in obtaining
    68
    employment, even after successful completion of training, than those who
    had had a shorter span of joblessness, MDTA training appeared to contribute
    significantly to relatively sizable job placement rates among these workers.
    About 4 out of every io of the MDTA trainees had not completed high
    school; i out of io had only a grade school education or less. Successful
    completion of MDTA courses appeared to help in reducing trainee placement
    difficulties regardless of previous level of education.
    Generally, older MDTA trainees experienced greater difficulty in finding
    jobs than trainees in younger age groups; however, MDTA programs
    appeared to contribute appreciably to relatively high placement rates in
    all age brackets.
    Nearly three-tenths of the MDTA trainees were approved for training
    in skilled occupations, over one-fourth semiskilled, and close to one-fourth
    in clerical and sales occupations. Principal occupations in which training
    was approved included general machine operators, automobile mechanics,
    stenographers, typists, clerk-typists, licensed practical nurses, welders, auto
    body repairmen, aircraft subassemblers, electronics mechanics, solderers,
    nurse aides, and orderlies.
    Through June 30, 1963, in connection with the selection of unemployed
    persons for training, local public employment offices conducted about
    345,000 screening interviews and 98,000 counseling interviews, administered
    57,700 General Aptitude Test Batteries, 55,2.00 specific aptitude tests, and
    6,zoo proficiency tests. During the year, local offices referred more than
    39,000 individuals to MDTA training.
    Community Employment Development
    In the majority of the Nation’s larger communities, local public employment
    offices during fiscal year 1963 cooperated with development organizations
    to retain existing industries, to assist those desiring to expand, and
    to attract new employers to the area. A preliminary review of a national
    survey indicated that local employment offices were cooperating with
    three-fourths of the more than 4,000 organizations (concerned with
    community development) which were in existence in 1963.
    As a part of its regular operations, a local employment office obtains
    information on employment trends, unemployment problems, demandsupply
    relationships, occupational shortages and surpluses, and manpower
    requirements and resources. Because of the availability of such data, the
    local office is usually the first agency to recognize existing or developing
    employment problems and to alert the community to them. Helping
    community leaders to understand and anticipate the consequence of economic
    and technological changes on the local labor market is a basic
    function of the community employment program. The program provides
    for USES participation in community employment development organizations
    by assigning local office representatives to serve as members of, or
    manpower consultants to, such organizations. In this way, the total
    69
    resources of the local office are made available to the local group in the
    development of programs to prevent or alleviate unemployment.
    The smaller communities program has proved to be an effective vehicle
    for the extension of employment services to rural counties remote from
    existing public employment offices. The demand from such areas for
    employment services was met in some States by smaller communities
    mobile teams, composed of State employment service personnel who move
    from one rural county to another at the invitation of local employment
    office managers and community leaders. During fiscal year 1963, techniques
    were developed to assist the mobile team in counseling and testing rural
    people, particularly youths; in placing individuals in available jobs; and
    in preparing an inventory of the occupational potential of the local work
    force for use by the community in attracting new industry. This information
    was used also in determining training needs and training potentialities
    for ARA and MDTA training programs. The inventory program provided
    local offices with detailed occupational information on thousands of individuals
    who previously had not been in contact with the employment
    service.
    Services were provided to 33 rural areas in 10 States in fiscal year 1963.
    A total of 2.7 States indicated an interest in initiating the smaller communities
    program in fiscal year 1964.
    Manpower Mobilization Planning
    During fiscal year 1963, plans were developed for a “built-in” manpower
    readiness in those geographic areas which will be most likely to feel the
    manpower impact of an enemy attack on this country. The major technique
    used in the project is the identification of already-functioning groups of
    workers with peacetime missions closely related to the type of survival
    activity for which there is likely to be a demand. Other arrangements
    included agreements between employers and employees to insure their
    immediate availability for emergency assignment and for any necessary
    training, including the reorientation of their activity toward a postattack
    environment.
    International Manpower Services
    General orientation programs were provided by the Bureau for 436
    foreign visitors to acquaint them with the role of the United States Employment
    Service and the Unemployment Insurance Service in the American
    labor market. About 100 of the participants visited local employment
    offices to observe how services were provided to workers and employers.
    Intensive programs of 3- to iz-month duration were developed for 30
    employment service technicians from 11 different countries. These participants,
    under grants from the Agency for International Development or
    the International Labor Organization, were specialists who came to learn
    U.S. techniques in such functions as labor market analysis, selection and
    placement, counseling, ocrnpational analysis, and manpower planning.
    70
    Two technical manuals, “Techniques for Determining Manpower Skill
    Needs and Training Requirements” and “Demographic Techniques for
    Manpower Planning in Developing Countries,” were completed for the
    Agency for International Development and were distributed to AID
    missions throughout the world.
    Employment Service Tools
    Organization and Management
    Improvement of the organization and management of the public employment
    offices in the 55 largest metropolitan areas continued to be of major
    concern. Technical work concerned with this improvement was continued
    in 41 of these areas in fiscal year 1963 and was started in 10 other areas.
    Although the rate of progress in reorganization during 1963 was limited
    by budget considerations, a systematic program was undertaken of assisting
    State agencies in the review of metropolitan area local office operations.
    During the first year of this program, reviews were made in 5 of the 55
    largest metropolitan areas.
    A continuing plan of action to increase the effectiveness of management
    and operations of public employment services was launched with Bureau
    evaluations of one agency’s State office and two large local offices. Technical
    assistance and training were provided the State agency in correcting
    deficiencies found through the evaluations.
    In connection with the overall improvement program, a “Handbook of
    Local Office Organization,” the first of a series relating to State administration
    and local office management, was completed during fiscal year 1963,
    and development was started of some of the other handbooks in this series,
    including evaluation, planning, and supervision.
    Occupational Analysis
    The third edition of the “Dictionary of Occupational Tides” (DOT)
    will provide current information on jobs in the U.S. economy. By yearend,
    97 percent of the editing of job definitions was completed; outlines of the
    new classification structure were organized; and 50 percent of the individual
    jobs were classified. Volume I contains job definitions of several thousand
    new jobs and many changes which have occurred in jobs since the 1949
    edition of the DOT. The definitions reflect alterations in occupational
    techniques resulting from recent changes in industry and in industrial
    processes. Volume II contains the new classification structure which
    provides two arrangements of occupations to be reflected in a single code
    system to serve the needs of placement and counseling. A conversion table
    relates the present and the new classification systems. The new Dictionary
    should be available for use early in fiscal 1965.
    An intensive industry-by-industry survey of jobs was made by the eight
    occupational analysis field centers in California, the District of Columbia,
    Michigan, Missouri, New Jersey, North Carolina, Washington, and Wis-
    71
    consin, to determine the existence of, and to provide current analyses for,
    all jobs. A major effort was started to keep currently abreast of the continuous
    job changes taking place in industry.
    In addition, a number of new projects were started in fiscal year 1963 to
    provide job information to meet specific needs: a study to determine the
    nature and extent of job information needed in providing placement services
    to professional workers; a study to determine the effects of automation
    on the job structure of an industry—printing and publishing, and others;
    and a project to update job descriptions for “Occupations in Electronic
    Data-Processing Systems,” originally published in 1959.
    Programed training materials for analysis of physical demands and
    working conditions requirements of jobs were completed and tested by the
    training of about 50 staff members. The test demonstrated the superiority
    of the new method over the lecture-type training process formerly used.
    Test Development
    To meet increasing demand for test-selected workers with potentialities
    for learning occupational skills, USES accelerated research in the development
    of aptitude test batteries. This research, conducted in cooperation
    with employers, trade associations, unions, and joint apprenticeship
    committees, included occupations for which training courses were established
    under the Manpower Development and Training Act and the Area
    Redevelopment Act, as well as occupations requiring formal apprenticeship
    and those which had emerged as a result of technological changes. In
    all, new USES aptitude test batteries based on the General Aptitude Test
    Battery were developed for 50 occupations, including occupations in the
    personal service and automatic data processing fields and in the air transportation
    and iron and steel industries. Research was undertaken on
    other occupations, including those in the atomic energy field and electronics
    and printing industries.
    Greater use was made of the Spanish edition of the USES General Aptitude
    Test Battery (BGPA—Bateria General de Pruebas de Aptitud) to
    meet needs of Cuban refugee centers and employment service offices throughout
    the country. To permit its more efficient use, test research on cultural
    effects was undertaken which will entail the testing of approximately
    1,000 employed persons in Puerto Rico.
    In the United States, in response to demand for use of the General Aptitude
    Test Battery for educational-vocational counseling of students in
    lower high school grades and for use with dropouts from these grades,
    USES initiated a series of studies in 1958 to determine (1) effects of maturation
    upon aptitude scores during the highschool years, and (2.)relationship
    between scores on the GATB taken in lower high school grades and subsequent
    performance in high school and in occupations and college z years
    after high school graduation. During fiscal year 1963, progress was made in
    analysis of data for the maturation and high school followup studies, and
    data collection continued for occupational and college followup studies.
    72
    The 19 State employment security agencies participating in the studies
    were successful in identifying the employer or the college attended by
    individuals in the sample 1 years after high school graduation.
    A study was begun during fiscal 1963 to determine usefulness of 9th and
    10th grade norms on the GATB for predicting performance in vocational
    high school printing training and in printing occupations after high school
    graduation. Data for the study are being collected in four high schools
    in three States. This study should serve as a basis for extension to other
    vocational areas.
    Work progressed on a complete revision being made of the USES typing,
    dictation, and spelling proficiency tests which are administered to more
    than 600,000 persons each year. Six forms of a new 5-minute typing test
    were released for operational use in local employment service offices. Separate
    norms for manual and electric typewriters were developed for the
    new test. Work also continued on development of new dictation test
    forms. Preliminary work was completed on development of a written
    proficiency test for electronic technician jobs.
    Area Labor Market Information
    Greater use was made in fiscal year 1963 of area labor market information
    collected as a part of the operations of the employment security program.
    A major factor in this expanded use was passage of the Public Works
    Acceleration Act which authorized the expenditure of $900 million in
    Federal funds for initiation and acceleration of public works projects in
    redevelopment areas and in areas designated by the Secretary of Labor as
    having had substantial unemployment for 9 of the preceding 11 months.
    Requests were received from Members of Congress, the Area Redevelopment
    Administration, and other Federal agencies, State and local officials,
    community development groups, and civic organizations for special area
    labor market surveys to determine eligibility for assistance. Reports on
    such surveys were submitted by State employment security agencies for
    about 450 additional labor market areas during fiscal 1963. Of these, nx
    were recommended by the Secretary of Labor as eligible for designation
    under both the Public Works Acceleration Act and the Area Redevelopment
    Act. More than 2.00 other areas were recommended for designation under
    the accelerated public works program alone.
    In connection with the annual review required under the Area Redevelopment
    Act, some 2.8 areas were recommended for termination of eligibility
    under ARA.
    At the beginning of the fiscal year, 51 major areas and 198 smaller areas
    were classified as “areas of substantial unemployment.’’ Unemployment
    was persistent in 19 of these major areas and 104 of the smaller areas.
    In addition, a total of 394 very small areas had been identified as having
    “substantial and persistent unemployment.’’ All areas with persistent
    unemployment problems were recommended to the Department of Commerce
    for designation as redevelopment areas.
    73
    The number of substantial unemployment areas declined during the year
    to 39 major areas (17 persistent) and 174 smaller areas (102. persistent) in
    June 1963. Among areas moving to a moderate unemployment rating was
    the key automotive center of Detroit—the first time this area was off the
    substantial unemployment listing since 1957.
    The list of “very small areas’’ of substantial and persistent unemployment
    expanded during the year to a total of 469 by June 1963. Additions
    to this list are based in part on the extent to which such areas are called
    to the attention of the USES for special surveys and do not necessarily
    reflect a recent worsening of the local unemployment situation.
    The following table compares the yearend (June 1963) classifications of
    150 major labor market areas with those for May 1963 and June 1961.
    June 1963 May 1963 June 1962
    Total, all groups (major areas).__ ______ __________ _____ 150 150 150
    Group A (overall labor shortage)________ _ ______ ________ ... 0 0 0
    Group B (relatively low unemployment)_______________ _______ 16 9 10
    Group C (moderate unemployment)__ ____ . _ . _________ 95 98 89
    Group D (substantial unemployment)____ _ _____ .... ... 28 31 42
    Group E (substantial unemployment)____ __________ _______ 9 8 6
    Group F (substantial unemployment)__________ _____________ 2 4 3
    The USES area classifications are also used to assign special preference to
    areas of high unemployment in the award of Federal procurement contracts
    under Defense Manpower Policy (DMP) No. 4. Such preference resulted
    in the award of defense contracts—which would otherwise have gone
    elsewhere—to firms located in areas with high unemployment in the amount
    of $78.5 million during the first three quarters of fiscal year 1963 (fourthquarter
    data not yet available). In all, areas of substantial unemployment
    received close to $17 billion in defense contracts during this period. Firms
    in areas with relatively persistent unemployment are also eligible for
    assistance in the form of Small Business Administration loans at reduced
    interest rates.
    During fiscal 1963, the manpower phases of 79 overall economic development
    plans (comprehensive analyses made by redevelopment area committees
    of local assets, needs, and the means for achieving economic recovery)
    were reviewed in detail. The total number of these plans reviewed since
    passage of the Area Redevelopment Act was thus increased to 143. A
    special report procedure was developed during the year to provide bimonthly
    information to ARA on current employment and labor requirements in
    firms receiving or directly benefiting from ARA loans and grants. Nearly
    16,600 workers were employed in June 1963 in 160 firms benefiting from
    ARA assistance. These firms were expected to employ 53,100 workers
    when in full operation.
    Occupational Information
    The “Guide to Local Occupational Information’’ published early in
    fiscal 1963 provided a ready reference to local guides and area skill surveys
    74
    completed since 1956. It stimulated efforts among State agencies to expand
    the preparation of individual occupational guides which present information
    on job duties, employment opportunities, training and experience
    requirements, methods of entry and promotional opportunities, and wages
    and working conditions in particular labor markets.
    Area skill surveys, analyzing current and future demand and supply for
    an entire area, by occupation, were completed by 16 States for 15 labor
    market areas during the fiscal year. By yearend, a total of 145 skill surveys
    had been completed since the program’s initiation in 1956. Counselors,
    school administrators, and industry and other community leaders utilize
    these surveys as a guide to manpower planning. A variation on the area
    skill survey, the training needs survey, was developed during the year to
    meet the needs of MDTA and ARA training programs.
    The 1963-64 edition of “Job Guide for Young Workers” was well received.
    Issued in March 1963, the entire first run for the Bureau of 45,000—the
    largest ever published—was exhausted before the end of the fiscal year, and
    an additional 15,000 copies were sold directly through the Government
    Printing Office. To meet the expected demand for 1964, a new printing of
    15,000 copies was ordered. The guide provides information for more than
    100 entry occupations frequently held by young people with a high school
    education or less, and contains data on the duties and characteristics of
    each job, qualifications required, employment prospects, advancement
    opportunities, and methods of entry.
    The President’s Committee to Appraise Employment and Unemployment
    Statistics (Gordon Committee) cited absence of a series on unfilled jobs as
    “one of the more conspicuous gaps in our labor force information.” Exploration
    into the feasibility of developing job vacancy data was launched
    and will be continued during fiscal 1964. Vacancy data can provide economic
    insights, aid in determining local training needs, and help in job
    counseling and placement.
    Industry Analysis
    Manpower surveys were prepared for the missiles, spacecraft, and aircraft
    industry and the footwear industry. These studies, based largely on establishment
    reports submitted by State employment security agencies, reviewed
    employment trends, economic outlook, and other significant manpower
    developments within the industries. The missile, spacecraft, and aircraft
    survey—the fourth of a series on the aerospace industry—became one of
    the Nation’s principal sources of manpower information covering about 2.0
    industries engaged in aerospace work. Three other surveys—bituminous
    coal mining, department stores, and tires and tubes—were in final draft at
    fiscal yearend.
    The scope of the industry manpower survey program at the close of the
    fiscal year was being expanded considerably to meet increasing need for
    more detailed industry-occupational information on manpower development
    and automation impact. Supplemental questionnaires were designed for
    75
    special industries scheduled for survey in the first half of fiscal year 1964 to
    determine the impact of technological change on the industries’ occupational
    composition, occupational opportunities for on-the-job training, and extent
    to which workers displaced fiom the industries participated in MDTA
    and ARA training programs.
    Labor Market Operations Research
    More than 50 special studies were undertaken by 2.5 State employment
    security agencies during the fiscal yeai to provide labor market information
    needed for policy formulation, program planning, and evaluation. These
    studies included analyses of local employment office data on characteristics
    of, and services provided to, jobseekers; services to individual firms in
    terms of results obtained with respect to job orders received and placements
    made; channels used by workers to obtain jobs and channels through which
    employers recruit workers; and new hires and placements, by size of firm
    and industry.
    A monthly report was developed during the year to analyze employment
    service activities in depth and to present information on labor market
    conditions affecting the employment service program.
    FARM LABOR SERVICES
    Farm placement and related services are provided by the employment
    security agencies of the 50 States, Puerto Rico, and the Virgin Islands.
    In fiscal year 1963, the Office of Farm Labor Service in the Bureau of Employment
    Security was reorganized as a full operating service, reporting
    direct to the Bureau Administrator.
    During the year, the Bureau and State employment security agencies
    concentrated their efforts in farm labor service on more effective utilization
    of domestic agricultural workers, improving living and working conditions
    of migratory farmworkers, reducing need for supplemental foreign workers,
    and preventing adverse effect on the wages and working conditions of
    domestic farmworkers in areas where Mexican and other imported foreign
    workers were used. To accomplish these objectives, the annual worker
    plan was strengthened to provide continuous employment for intra-area
    and out-of-area workers; efforts were made to improve working and living
    conditions (housing, wages, transportation) for migrant farmworkers;
    and improvements were made in selecting workers for out-of-area referral
    at peak crop seasons, in collecting and validating employment and wage
    information, and in certification procedures for the admittance of aliens
    seeking permanent entry under the Immigration and Nationality Act.
    The continuing rapid advance of technology and farm mechanization
    had a significant effect on recruitment of agricultural workers. It disrupted
    established migratory patterns, decreased the demand for seasonal farmworkers,
    and made employers more demanding with respect to workers’
    76
    skills. It highlighted the importance of training unskilled workers—•
    displaced as a result of the technological revolution in agriculture—for
    higher skilled jobs.
    Domestic Farm Labor
    Farm Placements
    Total agricultural employment continued its long decline—averaging
    5.0 million per month in fiscal year 1963, compared with 5.4 million the
    previous year, according to the Bureau of Labor Statistics. The 1963
    total included 1.7 million hired farmworkers, approximately the same as
    in the previous year. Decreases were reported in the number of farm
    operators and unpaid family workers, who totaled 1.5 million and 900,000,
    respectively, compared with x.7 million and 1.0 million in 196X.
    The same technological advances which have been responsible for declining
    farm employment in the past were at work in fiscal year 1963. For
    example, 70 percent of the cotton harvest was handled by machine, compared
    with 59 percent the year before. Also, greatly increased use was
    made of chemical sprays to kill grass and weeds in row crops. These and
    other changes in production methods eliminated thousands of seasonal
    jobs or shortened periods of employment. The rate of unemployment in
    agriculture ranged as high as 19 percent during the year, substantially
    higher than in nonagricultural industries in all except peak harvesting
    months.
    Those recruited by local employment offices for farm jobs ranged from
    year-round workers to migrants, from urban youth to housewives, and
    from reservation Indians to Puerto Rican contract laborers. As a part of
    their service to agricultural employers and to relieve potential labor shortages,
    public employment offices also provided information service and
    assistance in planning schedules to operators of custom grain combines
    and mechanical cottonpickers.
    Further reflecting the rapid technological change in agriculture, local
    employment offices reported a total of 7,9x3,543 farm job placements in
    fiscal year 1963, down more than a million from the 9,0x8,451 total for the
    year before. During 1963, local office staff made 401,717 visits to agricultural
    employers; increased referrals of registered applicants selected from
    the files; registered more workers for migrant labor jobs; and curtailed
    mass referrals of unregistered applicants. Although use of farmworkers
    from local sources increased in 1963, recruitment of labor through the
    intrastate and interstate clearance system continued to be a large-scale
    activity. In California alone, more than 60,000 nonlocal domestic farmworkers
    were employed in a single month.
    Better utilization of local labor was reflected in increased day-haul
    operations, a method by which local labor is transported to farm jobs on
    a daily basis. In calendar year 196X, the number of workers transported
    on peak days through day-haul activities reached nearly 3x0,000.
    711-471—64------ 6 77
    An “established” day-haul pickup point is one that is set up but is not
    supervised by the State employment security agency; an “operated” dayhaul
    pickup point is both set up and supervised by the agency. While the
    number of towns with State-operated day-hauls decreased slightly to 717
    in 1962., the number of established day-haul points increased by 60 to 1,466,
    with an overall increase of 3,400 persons transported on peak days. Since
    1958, the number of day-haul workers transported from established points
    has risen by nearly 15,000, reflecting better coverage of areas distant from
    the local office.
    Agriculture as a source of employment for youth made gains during the
    year, and day-haul continued to be the major method for using youth in
    farm employment. State agency-operated day-haul points for youth only
    were set up in 11 percent more towns in 1962. than in the previous year.
    State agency-established day-haul points showed even greater advances.
    The number of youths transported on peak days increased by 33 percent to
    15,410. Thousands of other young people participated in joint youthadult
    day-hauls or were referred as workers to fill regular farm jobs for
    which they were qualified.
    Over 1,000 youths were placed in live-in farm jobs during vacation periods.
    Live-in programs usually involved recruitment of two types of workers—
    city youth with no farm experience and vacationing agricultural students.
    A live-in pilot project in a Colorado beet area demonstrated that youths
    can do as well as, if not better than, the migrants usually employed for
    this work.
    By means of “Farm Employment Days,” local employment offices helped
    farmworkers wanting jobs to meet farm employers needing help. One
    thousand such days were held in 1961. Because of the growing need for
    individually selected skilled workers, 37 percent more offices used this
    device for effecting placements.
    Over 35,000 Indians from 11 States were recruited for off-reservation
    farmwork in 1961.
    The use of Puerto Rican contract workers reached a peak of 11,900 in
    August 1961, and then dwindled to insignificance from September to March.
    Under agreements with the Commonwealth of Puerto Rico, workers were
    brought in for farmwork along the Atlantic seaboard from Massachusetts
    to Florida, with New Jersey using the largest number of workers.
    Migratory Farmworkers
    In calendar yeai 1961, a total of 10,051 migrant groups and crews, representing
    176,670 individuals, were scheduled for successive farm jobs under
    the annual worker plan. Group contacts increased 9 percent over 1961.
    In the Florida-itinerary phase of the annual worker plan, farm labor personnel
    and employers from 13 States met with crew leaders for pooled
    interviews at designated locations and interviewed 717 groups and crews,
    representing 33,879 woikers. A number of Texas crews whose work had
    78
    taken them across the Gulf States to the citrus groves in Florida participated
    in the itinerary for the first time.
    In fiscal year 1963, new procedures were adopted for identifying migrant
    workers by name, address, and social security number on the manifest
    covering each group of workers referred for interstate farm employment.
    This identification, which in most cases also indicated sex of worker,
    provided information on labor source and potential new recruitment sources.
    It was a first step in assembling information—necessary for selective placement—
    on individual migrants as to those who report as scheduled, perform
    satisfactorily, and remain on the job until it is completed.
    In an effort to attract out-of-State workers to Florida to substitute for
    contract workers from the West Indies, Florida farm labor representatives,
    in a controlled experiment, went to Georgia, Louisiana, Mississippi,
    South Carolina, and Tennessee to recruit for the winter season. Also,
    citrus growers agreed to improve working conditions.
    Most farm labor information centers, which are located strategically
    to serve migrant workers, reported increases in the number asking for
    information about farm labor demand and supply. At the end of June 1963,
    a total of 8,860 migrants had passed through the Hope, Ark., information
    center since its opening in the spring. This total compared with 7,468 at
    the same time in the previous year. Sikeston, Mo., reported 6,02.4 compared
    with the previous year’s 5,643; Little Creek, Va., reported a slight drop—
    13,799 compared with 13,935 in
    Continued attention was given during the year to implementing the
    Secretary’s regulations (2.0 CFR 602..9) relating to the use of public employment
    service facilities in the interstate recruitment of agricultural workers,
    to insure that wages offered were no less than those found prevailing among
    workers similarly employed within the area of employment. The Bureau
    worked with State employment security agencies to insure consideration of
    employer and worker complaints relating to these regulations. A number
    of States passed legislation to improve housing, transportation, and other
    living and working conditions affecting migratory workers.
    Pilot programs in Elizabeth City and Hendersonville, N.C., which
    were being carried on by cooperating Federal agencies concerned with
    providing improved services to migratory workers and their families,
    completed the first year of operation, and services were expanded.
    The Bureau participated with State employment security agencies,
    and other Federal agencies and offices, in developing programs under the
    Manpower Development and Training Act and the Area Redevelopment Act
    to train unemployed and underemployed rural workers for both farm and
    nonfarm occupations. The occupations for which such workers were
    trained included farm machinery operation and maintenance, vineyard and
    tree pruner, general farmhand, dairy hand, forester aid, cattle rancher,
    and irrigator. By the end of the fiscal year, a total of 95 such projects,
    with 1,075 trainees, had been approved by the Bureau.
    79
    Tn the first training class composed exclusively of migrant farmworkers’
    one group was trained to be general farmhands; the other, combination
    welders.
    The Office of Farm Labor Service made a nationwide survey of the scope
    of agricultural mechanization and other technological activities in high
    labor-using crops. The purpose of the study was to determine how the
    farm labor force was affected and what training should be provided for
    farmworkers under the Manpower Development and Training Act.
    Legislative Action
    By the end of fiscal 1963, six bills on migratory labor, sponsored by Senator
    Harrison A. Williams, Jr. (N.J.), had passed the Senate and had been
    sent to the House. The proposed legislation provided for educational
    opportunities, day care for children, sanitation facilities, regulation of
    child labor, required crew leader registration, and a national advisory
    council on migratory labor.
    A major breakthrough in legislative action with respect to living and
    working conditions was made in September 1961 with the passage of the
    Migrant Health Act (P.L. 87-691). Funds were appropriated by the 88th
    Congress to help establish family health services clinics under the act
    and to carry out other health projects tor migratory workers and their
    families.
    Foreign Farm Labor
    When qualified domestic farmworkers are not available to meet peak
    seasonal needs of agriculture, growers may request use of foreign workers.
    However, the Bureau’s regional offices will not approve foreign-worker
    quotas for States until employment security agencies inform them that
    there are no available domestic workers and that the employment of the
    foreign workers will not affect adversely the wages and working conditions
    of U.S. workers.
    Use of contract foreign workers as temporary supplemental labor on
    U.S. farms continued to decline in fiscal year 1963. Average monthly
    employment of these workers, at 61,000, was 9,000 below the previous
    year’s average. The greatest number reported to be working at any one
    time in fiscal 1963 was 117,000, about 43 percent fewer than in 1961; the
    lowest number was 30,100.
    The decline in use of Mexican nationals which began in 1959 and continued
    through fiscal 1963 accounted for nearly all of the decrease in use of
    foreign workers. Average employment of Mexican contract workers
    dropped from 60,000 in fiscal 1961 to 51,000 in 1963 > peak employment, from
    109,000 to 111,000. Rapidly expanding mechanization in cotton harvesting,
    particularly in Texas, was a principal cause for the decreased demand.
    During the year, 195,515 Mexican nationals were contracted under the
    authorization of the Agricultural Act of 1949 (Public Law 78) and the
    international agreement with Mexico. They worked in 10 States for
    80
    approximately 30,500 farm employers. California led other States in their
    use, by a substantial margin. These “braceros” were used principally in
    cotton, tomatoes, citrus fruits, strawberries, and lettuce. In all, 19,097 of
    these workers were recontracted during the year and 103,496 were returned
    to Mexico, including workers who were already in the United States under
    contracts executed during fiscal 1961.
    Bureau-operated reception centers at Hidalgo, Tex., and Nogales,
    Ariz., were closed during the latter part of the year because of the
    substantial reduction in number of Mexican nationals being received for
    processing and referral to employers.
    The decreased number of Mexican nationals brought into the United
    States in fiscal 1963 under Public Law 78 was partially offset by the entry
    of more Mexican immigrants with permanent visas (so-called “green-card
    workers”). An estimated 33,000 to 38,000 of these persons worked in
    California agriculture at peak season in the fall of 1961; they comprised
    about one-fourth of the State’s total domestic agricultural work force at
    peak.
    During fiscal year 1963, the Department of Labor, in accordance with
    section zxz(a)(i4) of the Immigration and Nationality Act, was consulted
    for certification purposes only if Z5 or more workers requested visas for
    entry to work with a single employer. However, during 1962., procedures
    were developed, to become effective July 1, 1963, providing that each
    employer desiring one or more foreign workers for permanent employment
    in the United States must obtain from the public employment service a
    job-offer endorsement, thus giving that office an opportunity to fill the
    jobs with domestic workers. The endorsement, stating that the person
    offering the jobs is the employer in fact and that the work represents bona
    fide year-round employment, was designed to help the Department of
    State, in considering whether a visa should be issued, to determine that the
    prospective immigrant would not become a public charge.
    Employment of permanent visa holders who live in Mexico and commute
    to jobs across the border was the subject of litigation during fiscal year
    1963. The issue before the court was whether the Attorney General and
    the Commissioner of Immigration and Naturalization could be required to
    exercise their discretion to change the status of commuter aliens from
    immigrant to nonimmigrant and to deny them the right to commute
    (Texas State AFL-CIO et al. v. Fobert F. Kennedy et al."). The decision of
    the U.S. District Court on April 11, 1963, was that they could not be
    required to do so. The plaintiff appealed the decision to a higher court.
    Employment of West Indians averaged 9,000 throughout fiscal 1963,
    virtually the same as in the previous year, but peak employment of these
    workers increased sharply from iz,ooo to 14,500. Peak employment of
    Canadians in the United States, used principally for Maine’s potato crop,
    was 8,700 in 1963, slightly more than in 1961. Other foreign farmworkers
    employed in the United States were Japanese (about i,zoo), Filipinos (100),
    and Basque sheepherders (1,100).
    81
    Compliance Activities
    To insure compliance with the Migrant Labor Agreement and the
    Standard Work Contract, and to investigate complaints and other matters
    relating to the Mexican labor program, Bureau representatives made the
    following investigations in fiscal year 1963:
    • Housing: 9,311 inspections; deficiencies found in 3,136cases, about
    one third.
    • Central restaurant facilities: 1,010 inspections; deficiencies, 364,
    or 18 percent of installations.
    • Vehicles used by employers to transport Mexican workers: 6,015
    inspections; deficiencies on first inspection, 1,2.00, or 16 percent.
    • Payrolls and records: 36,189 inspections; violations, z,88i.
    Prompt action was taken to effect settlement of amounts due Mexican
    workers.
    • Complaints: 3,157 investigations; violations, 1,186. A total of
    $110,767 was collected on behalf of Mexican workers as a result of
    investigations and inspection activity. Forty-one employers were
    declared ineligible to employ Mexican contract workers because of
    serious violations of the agreement and work contract.
    As of June 30, 1963, the U.S. Government, in its capacity as guarantor
    of the work contract, paid $8z,zo6 under the guarantee provision of the
    Migrant Labor Agreement with Mexico. At the end of the fiscal year,
    $39,860 had been recovered from defaulting employers. Total losses
    attributed to death, insolvency, and other causes amounted to $3,847. Of
    the outstanding balance, $11,013 was pending collection through litigation
    and $16,474 through administrative action.
    Wage Program
    Under the Migrant Labor Agreement with Mexico, Mexican nationals
    may not be paid less than the rate specified in the Standard Work Contract
    or the rate determined by the Secretary of Labor to be prevailing among
    domestic workers doing similar work in the area of employment, whichever
    is higher. Based on wage surveys conducted by State employment security
    agencies, the Secretary made 1,076 prevailing wage determinations in fiscal
    year 1963 covering 1,181 wage-finding classes in 18 States. Reflecting the
    sharp decline in Mexican contract worker employment, 10 percent fewer
    determinations were issued in fiscal year 1963 than the 1,395 made in 1961.
    Action was taken to prevent the employment of foreign agricultural
    workers on the east coast (principally workers from the British West Indies
    and Bahamian Islands) from adversely affecting the wages and working
    conditions of U.S. workers similarly employed. Public hearings were
    held in Boston, Miami, Trenton, and Winchester, in November and December
    of 1961, to get the views and comments of interested parties. As a
    result, wage standards were issued for each of the 11 States in which there
    had been significant foreign worker employment. The prescribed hourly
    82
    rates ranged from 75 cents and 80 cents in Virginia and West Virginia,
    respectively, to 95 cents in Florida and $1 in New York, New Jersey, and
    all of the New England States.
    After a long period of general stability, wage rates in areas of Mexican
    worker employment showed an upward movement beginning in i960.
    This uptrend received strong impetus from adverse effect determinations
    issued in the spring of 1961 applicable to the 2.4 States in which Mexican
    workers had been employed in 1961. The hourly rates involved ranged
    from 60 cents in Arkansas to $1 in 16 States. The impact of the actions was
    immediate. During the entire 1963 fiscal year, wage rate increases occurred
    in about 38 percent of the cases for which comparisons could be made with
    prior year levels.
    The strength of the uptrend in wage rates in areas using Mexican workers
    was indicated by results of a study of activities in the seven States which
    accounted for virtually all of the Mexican contract worker employment.
    Rates in these activities were about 12.. 5 percent higher than in 1958.
    During 1961, they rose by about 3 percent over i960 levels, while in 1961
    there was a further increase of more than 4.6 percent.
    UNEMPLOYMENT INSURANCE
    The Federal-State unemployment insurance system provides workers
    with partial compensation for wages lost during periods of involuntary
    unemployment. It acts as a stabilizing influence on the economy by sustaining
    purchasing power during downward swings of the business cycle
    and provides some of the impetus needed for the recovery phase. In fiscal
    year 1963, about 47.0 million workers in commerce, industry, and government,
    including the Armed Forces, were covered under the system. A
    total of 815,000 railroad workers were covered under a separate unemployment
    insurance system administered by the Railroad Retirement Board.
    Each State has its own unemployment insurance law and its own benefit
    fund. Benefits for unemployed Federal workers and ex-servicemen are
    financed through direct Federal appropriations but are paid by the States,
    as agents of the Federal Government, on the basis of the State law. In
    fiscal year 1963, about z.4 million employers were subject to State unemployment
    insurance taxes, and they paid about $3.0 billion in such taxes.
    In Alabama, Alaska, and New Jersey, employees as well as employers
    paid UI taxes.
    Benefits of $1.9 billion were paid to 6.5 million insured workers for 86
    million weeks of unemployment during fiscal year 1963. Of total benefits,
    $1,789 million was paid out of State funds and $152. million out of Federal
    appropriations to former Federal civilian employees and military personnel
    following their separation from the Armed Forces.
    In addition to the above benefit payment operations, the machinery of
    the UI system was utilized for the payment of allowances under two Federal
    83
    programs—the Area Redevelopment Act of 1961 and the Manpower Development
    and Training Act of 196Z. The latter began operations early in fiscal
    1963.
    Training allowances under the Area Redevelopment Act are equal to the
    average weekly unemployment insurance benefits in a particular State.
    During fiscal 1963, programs initiated under the act resulted in the payment
    of $1,739,090 and involved some 9,450 trainees. Generally under the
    Manpower Development and Training Act, allowances are geared to the
    State unemployment benefit rates and may include subsistence and transportation
    allowances where a trainee must leave his regular place of residence.
    Subsistence payments during retraining fill a need which cannot be met in
    most cases by the unemployment insurance system. In many States,
    unemployment insurance benefits are denied to persons attending a fulltime
    course of instruction, since trainees are not considered to be available
    for work. Even where unemployment benefits may be paid during vocational
    training, many potential trainees will have exhausted their right to
    them before training is completed. Approximately zz,ooo workers approved
    for training under the Manpower Development and Training Act
    received allowances totaling $7,788,845 in fiscal year 1963.
    Under the Trade Expansion Act of 1961, responsibilities of the Federal-
    State UI system were expanded to include payment functions. The act
    provides for payment of allowances to workers who are separated from
    employment in industries determined by the U.S. Tariff Commission to have
    been affected adversely by U.S. trade agreements with other nations.
    Amendments to UI laws during the 1963 State legislative sessions ranged
    from increases in the maximum weekly benefit amount and adjustments of
    the taxable wage base and maximum tax rates to more effective financial
    indicators and measures for reserve fund adequacy. There was a marked
    tendency toward higher or more difficult qualifying requirements in terms
    of increases in the required wages or weeks of work and more stringent
    disqualifications which changed or reduced benefit entitlement for reasons
    of separation from, or refusal of, work without good cause or receipt of
    other income, such as old-age and survivors insurance or payments from
    employers’ pension plans.
    The Bureau in its role of adviser and the States as operators of the UI
    program took the following actions, among others, to improve operations:
    (1) Widening the scope and improving the planning and methodology of
    UI research studies; (x) initiating improved procedures in the claim operations
    and adjudication processes; (3) increasing the use of automatic data
    processing systems; and (4) making general improvements in administrative
    organization and management. The Federal Administration introduced
    to the Congress proposals for improving the Federal-State UI program.
    These and other developments affecting the unemployment insurance
    program are described in the following sections.
    84
    State Benefit Financing
    For the second successive year since 1957, yearend reserves increased—
    $6.2. billion on June 30, 1963, compared with $5.8 billion the year before,
    a rise of 6.9 percent. The higher reserve fund balance resulted primarily
    from the recent trend toward higher tax rates and the rise in aggregate
    taxable wages. Tax collections reached an alltime high of $3.0 billion in
    fiscal 1963—10.9 percent above the level a year earlier. This increase resulted
    not only from the provisions in State laws setting up higher tax
    schedules to bring tax income to more adequate levels but also from legislation
    in some States increasing tax rates. Benefit payments totaled $2.. 8
    billion for each of fiscal years 1962. and 1963. As a net effect of all financial
    transactions during the year—benefit payments, collections, interest earned
    on reserve funds, and loan transactions—total revenues for the year ended
    June 30, 1963, exceeded total disbursements by $398.8 million, as compared
    with a net accretion of $59.7 million during the previous fiscal year.
    Aggregate State unemployment insurance reserve funds at the end of
    fiscal 1963 amounted to an estimated 5.0 percent of taxable wages, as compared
    with 4.7 percent the year before. A common measure of fund adequacy
    is provided by comparing reserves (expressed as a percent of total
    wages) with the highest consecutive i2.-month UI benefit payments (also
    expressed as a percent of total wages) experienced during the last 10-year
    period. On this basis, aggregate unemployment insurance reserves on
    June 30, 1963, representing 1.9 percent of total wages, amounted to 1.41
    times the highest consecutive 11-month cost rate in the immediately
    preceding 10 years, about the same ratio indicated at the end of the previous
    year. A reserve level equal to at least 1% times the highest consecutive
    i2.-month cost rate is considered as a minimum level of adequacy. Twentyfour
    States had reserves of less than 1% times the high cost rate, and four
    States had a multiple of 4.0 or more.
    The temporary increase in the Federal tax to finance benefits under the
    Temporary Extended Unemployment Compensation Act of 1961 was reduced
    by the Congress for calendar year 1963 because TEUC costs were lower
    than had been expected. The increase of 0.4 percent was reduced to o.X5
    percent, making the overall Federal rate on 1963 wages 3.35 percent before
    offset for State unemployment compensation taxes, instead of 3.5 percent.
    The tax is payable by January 31, 1964.
    The Federal unemployment account, built up and maintained from
    available excess Federal tax collections over administrative expenses, is
    the source of funds for non-interest-bearing advances to States with low
    reserve funds. This account had a balance of $59.4 million on June 30,
    1963. Prior to fiscal year i960, three States (Alaska, Michigan, and
    Pennsylvania) had borrowed from the loan fund a total of $2.33,765,000.
    By means of the automatic provisions of the law which increase Federal
    85
    unemployment taxes for employers in the States which have borrowed,
    Alaska began repayment to the loan fund in fiscal year 1961; Michigan, in
    fiscal year 1963. At the end of fiscal year 1963, Alaska, with a total indebtedness
    of $8,765,000, had repaid $449,647; Michigan had repaid $7,153,713
    of its $113 million advance.
    State Legislation
    There was substantially less activity in State unemployment insurance
    legislation during fiscal year 1963 than in 1959 or 1961. The enactments—
    other than those to increase the maximum weekly benefit amount—tended
    to restrict the payment of benefits in one way or another, through higher
    qualifying requirements and more stringent disqualifications or by reduction
    of the weekly payment to individuals who also receive retirement payments.
    No significant legislation affecting coverage of workers was enacted.
    Legislation enacted in 18 States related to financing of unemployment
    insurance with respect to the taxable wage base, maximum tax rates, and
    reserve fund adequacy.
    The most restrictive State bill to be enacted would impose a waiting
    period of 7 to 13 weeks if the claimant had wages in his base period of
    $6,000 to $9,000 or more. The amendment specified that it would not
    become effective if, prior to January 8, 1964, the Secretary of Labor found
    it to be out of conformity with Federal requirements.
    Ten States increased the maximum weekly benefit by amounts ranging
    from $1 to $7. Two of them provided for automatic adjustment of the
    maximum weekly benefit in accordance with changes in average wages.
    Increases in the maximum benefit also became effective in seven other
    States that had previously adopted similar provisions for automatic adjustment
    of the maximum. In reverse action, Wyoming reduced its maximum
    benefit by setting it at a smaller percentage of average wages.
    Formula changes were made in three States, all of which had previously
    based the weekly benefit amount on high-quarter wages. Oregon adopted
    an annual-wage formula, and Ohio and Vermont changed to a formula
    based on average weekly wages—computed, in the latter State, on the
    basis of the 2.0 weeks of highest earnings. Other significant changes included
    repeal of the Wyoming dependents’ allowance provision and, in
    Ohio and Wyoming, reduction of the weekly benefit amount payable to
    interstate claimants.
    At the end of fiscal year 1963, maximum basic weekly benefit amounts
    ranged from $16 in Puerto Rico to $53 in Wisconsin and $55 in California
    and Hawaii. Twenty-four States, with 57.1 percent of the covered workers,
    had a maximum of $40 or more, and in six States, with 2.8.6 percent of the
    covered workers, the maximum was $50 or more. Eleven States, with
    13.9 percent of covered workers, still had a maximum benefit of less than
    $35. (In States which provide dependents’ allowances, the “basic”
    weekly benefit is the amount for a claimant with no dependents, as defined
    by law.)
    86
    Maximum basic weekly benefit amount, June 30,1963
    Percent of covered
    workers (calendar
    year 1962)
    Percent
    Cumulative
    percent
    Number
    of States
    $50-$55 _______ - --- _____- -------- 6 28.6 28.6
    $45-$49 _________________ -- -- ---------- 10 9.6 38.2
    $4Q-$44 ___________ ____ -- -- - 8 19.0 57.2
    $35-$39 _____ ________________ - - - --- 17 28.9 86.1
    $30-$34 ____________________________ - 10 13.3 99.4
    Under $30__ _______________________________________________ 1 .6 100.0
    52 100.0
    In most States, the weekly benefit represented about one-half of the
    weekly wage for those workers who qualified for less than the maximum
    benefit amount. As shown in the following table, the small increases in
    the maximum weekly benefits effected during 1963 did not keep pace with
    increases in wages. In only 11 States, with 7.1 percent of the covered
    workers, did the maximum benefit represent 50 percent or more of average
    weekly wages. (Comparable figures the year before were ix States,
    including California, with 17.3 percent of covered workers.) In calendar
    year 1962., over half of the claimants in xx States were receiving the maximum
    weekly benefit and, in 14 of these States, 60 percent or more received
    the maximum benefit. Many of these workers were earning more than
    double that amount when they were working.
    Percent of covered
    workers (calendar
    Number year 1962)
    of States
    Percent Cumulative
    percent
    Maximum basic weekly benefit amount, June 30,1963, as a
    percent of average weekly wages in calendar year 1962
    04 _ __ _ ______ - - - ---- 1 0.4 0.4
    50-54 ____ __________ _____ 10 6.7 7.1
    45 49 _ _ _ _ _ ------ ---- 10 35.7 42.8
    40 44 ___ _ _ _____ ____ - - - 14 27.9 70.7
    35-39 _______________________ _______ 12 23.1 93.8
    30-34 - -- _ _ _ _______ _ __ -------- 4 2.0 95.8
    1 4.2 100.0
    Total________________________________________________ 52 100.0 —
    Higher or more difficult qualifying requirements were adopted in nine
    States. Of these, two required a specified number of weeks of employment.
    There were, however, no accompanying improvements in the duration of
    benefits. Two States changed from uniform duration for all eligible
    claimants to a formula providing benefits equal to a fraction of the claimant’s
    base-period wages, up to a maximum of x6 weeks. Colorado reduced
    its maximum weeks of benefits and the fraction for computing each individual’s
    entitlement.
    As shown in the following table, 10 States, with x6.o percent of the
    covered workers, provided uniform duration. In the other States, which
    87
    varied the duration of benefits with a worker’s base-period wages, the
    maximum duration ranged from xi to 39 weeks. Forty-eight States, with
    96.3 percent of covered workers, provided a maximum potential duration
    of 2.6 weeks or more.
    Maximum duration in weeks Number
    of States
    Percent of covered
    workers (calendar
    year 1962)
    Percent Cumulative
    Uniform duration:
    30_____________________________________________________
    26____________________________________________________
    12_____________________________________________________
    Variable duration:
    39_____________________________________________________
    36_____________________________________________________
    34________________________________________________
    30____________________________________________________
    28____________________________________________________
    26____________________________________________________
    24__________________________________________________
    22_____________________________________________________
    181
    112
    31
    31
    21
    7.0
    18.4
    .6
    .9
    .5
    2.9
    5.6
    1.3
    59.7
    2.0
    7.0
    25.4
    26.0
    26.9
    27.4
    30.3
    35.9
    37.2
    96.9
    98.9
    100.0
    Total________________________________________________ 52 100.0
    Legislation enacted in nine States provided more restrictive disqualifications
    for voluntary leaving without good cause, discharge for misconduct
    connected with the work, or refusal of suitable work. The amendments in
    Colorado substituted for the usual type of disqualification a system of
    benefit awards varying with the circumstances of the claimant’s separation
    from work. Following a trend established in recent years, two States
    adopted provisions to reduce the weekly benefit payment by the prorated
    amount of the claimant’s old-age insurance benefit or payment received
    under an employer’s retirement plan. At the end of the fiscal year, 15
    States provided for reduction of the unemployment benefit if the claimant
    received old-age insurance, and 31 States, for receipt of payments under
    employers’ pension plans.
    Laws relating to the financing of unemployment insurance were enacted
    in 18 States. Three States (Idaho, Michigan, and Vermont) increased the
    amount of wages on which contributions are based to $3,600; one State
    (Tennessee), to $3,300; and another (Utah) increased its tax base from
    $3,000 to $4,2.00. Fourteen States at the end of the fiscal year had a tax
    base above the $3,000 limit provided in the Federal Unemployment Tax Act.
    Increases in maximum possible tax rates to provide greater equity in the
    sharing of benefit costs were enacted in 10 States in 1963. These increases
    brought to 33 the number of States providing rates above 2.-7 percent.
    Twenty-two of the 33 States had a maximum rate of 4.0 percent or higher,
    with the highest set at 7.2. percent.
    Provision of graduated above-standard rates for employers with negative
    balances tends to reduce inequities in the tax burden among employers by
    requiring those with high cost experience (deficit account employers) to
    pay a larger share of their benefit costs. Three States (Michigan, New
    Hampshire, and New York) enacted such a provision.
    88
    Measures were enacted by Arkansas, Utah, and Vermont to use total
    wage ratios (rather than taxable wage ratios) as indicators of reserve fund
    adequacy, either for signaling the suspension of reduced rates or to effect
    higher tax rate schedules.
    Federal Legislation
    Attention was focused on the Federal-State unemployment insurance
    program as unemployment continued at a high level and workers experiencing
    long-term unemployment rose in number. To fill gaps in the protection
    afforded the unemployed and to make the program more responsive to
    changes in the economy, the Administration proposed the following permanent
    improvements: Providing a permanent program of Federal unemployment
    adjustment benefits for the long-term unemployed with substantial
    past employment; broadening coverage; strengthening the financing by
    increasing the wage base to $5,zoo and providing equalization grants
    to those States whose unemployment cost rate is above a specified amount;
    increasing the weekly benefit amount under State unemployment insurance
    laws up to a maximum which is to start for 1966 and 1967 at 50 percent
    of State average weekly wages in covered employment, and to increase by
    1970 to 66% percent of State average weekly wages; and not denying
    benefits to an otherwise eligible individual when he is taking training
    with the approval of the employment security agency.
    Because long-term unemployment is a national problem, the Administration’s
    proposals included a program of Federal unemployment adjustment
    allowances for the long-term unemployed who have had long and substantial
    attachment to the labor market. These benefits would be payable to
    individuals who had been unemployed for at least z6 weeks, had exhausted
    their State benefit rights, and had worked at least half of a specified 156-
    week period preceding their benefit year. These benefits would be paid
    over a 3-year period at the State weekly benefit amount for a potential
    period of from 13 weeks, for a worker who just meets the qualifying requirements,
    to z6 weeks, for a worker who had worked for two-thirds of
    the 156-week period.
    The Federal unemployment adjustment allowances and the equalization
    grants to States would be financed by an increase of 0.3 percent in the Federal
    unemployment tax.
    Federal Programs
    In connection with payment of allowances under the Area Redevelopment
    Act and the Manpower Development and Training Act, the Bureau’s
    Unemployment Insurance Service was concerned principally with proper
    administration, with reviewing and improving operating procedures of the
    50 State agencies, the District of Columbia, and Puerto Rico, and with
    prevention of improper, duplicate, or excessive payments. Under the
    Trade Expansion Act signed by the President on October n, 1961, the
    89
    Bureau is responsible for payment of adjustment allowances. A worker’s
    eligibility for such allowances is based upon a substantial amount of
    employment in a recent period and total or partial separation from employment
    which has been determined by the U.S. Tariff Commission to have
    been affected adversely by increased imports resulting from concessions
    granted under trade agreements. Trade readjustment allowances are payable
    for up to 51 weeks of unemployment at a weekly rate which is the
    lesser of 65 percent of the worker’s average weekly wage during a specified
    period, or the average weekly manufacturing wage as published by the
    Bureau of Labor Statistics.
    An additional 13 weeks may be payable to workers who are 60 or more
    years of age when separated from adversely affected employment. Up to
    2.6 additional weeks may be paid to an eligible worker to permit him to
    complete training which began prior to his having received 52. weeks of
    allowances or prior to the end of his benefit period. Transportation and
    subsistence allowances are payable under the Trade Expansion Act to
    workers adversely affected who are taking training provided by the Area
    Redevelopment Act or the Manpower Development and Training Act at a
    training facility which is not within commuting distance of the trainees’
    homes. Relocation allowances are provided to cover the expense incurred
    by an adversely affected worker in moving himself, his family, and household
    effects to a location where he has obtained new employment.
    State employment security agencies, acting as agents of the United
    States under agreements with the Secretary of Labor, were made responsible
    for processing claims and paying allowances, from Federal funds appropriated
    by Congress, to workers eligible under the act. However, at the
    end of fiscal year 1963, no funds had been appropriated for the payment of
    such allowances.
    Following passage of the Trade Expansion Act, the Bureau’s Unemployment
    Insurance Service developed specifications for regulations and agreements;
    issued operational procedures as a guide for State agencies; made
    plans for training meetings for State agency staff members; and initiated
    trade readjustment allowance notices to inform State agencies of industry,
    firm, and worker petitions filed with the U.S. Tariff Commission and the
    findings on petitions acted upon by the Commission. Up to June 30,1963,
    the Commission had made no affirmative findings on petitions filed.
    Research and Information
    To make the unemployment insurance program more effective in lessening
    hardships of unemployment, there was a recognized need in fiscal 1963 for
    examining the way the program functioned, the impact it had on claimants,
    and its role in the Nation’s economy. In response to this need, the number
    and scope of UI research projects undertaken by the States were expanded
    greatly. Coverage, benefit entitlement, and exhaustion experience were
    among the principal areas investigated.
    90
    Interest continued in the employment, unemployment, and earnings
    experience of agricultural workers. One State (Nebraska) completed its
    survey findings during the 1963 fiscal year, and one more (Washington)
    began planning to conduct such a survey. These studies, and the three
    completed in fiscal year 1962. by Arizona, Connecticut, and New York, were
    based on a methodology recommended by the Bureau.
    Eight States (Alaska, Florida, Maryland, Mississippi, Missouri, Nevada,
    New Hampshire, Vermont) and the District of Columbia studied benefit
    entitlement to develop a factual basis for evaluating qualifying requirements
    in State laws, and one State (Oklahoma) published the results of its
    study. These studies involved the compilation, for samples of covered
    workers, of a quarterly record of earnings in covered employment over a
    3-year period. Analyses of the data in these studies will shed considerable
    light on varying degrees of labor force attachment among workers and will
    help in developing more adequate tests for insured status.
    By the end of fiscal year 1963, seven States (Arizona, Florida, Massachusetts,
    North Carolina, New Jersey, Pennsylvania, Washington) had established
    continuous wage and benefit histories of workers and claimants.
    This information was obtained as a byproduct of records already available.
    Worker and claimant histories, which show individual employment patterns
    by industry over several years, provide data for analyzing employment
    and benefit experiences of workers.
    In fiscal 1963, three States (Massachusetts, Minnesota, Wyoming) and
    Puerto Rico studied the labor market experience of beneficiaries who had
    exhausted their benefit rights. In addition to clarifying problems of the
    long-term unemployed, these studies, based on a Bureau guide, will answer
    many questions relating to extent of benefit duration. A number of States
    developed plans for conducting studies in fiscal year 1964.
    Other research completed or in process during fiscal year 1963 included
    studies on the adequacy of the weekly benefit amount; successive benefityear
    claimants, disqualifications, and nonmonetary determinations; and
    temporary disability insurance.
    The major research activity of the Bureau in fiscal year 1963 was the
    task of tabulating, summarizing, analyzing, and publishing the data
    collected in fiscal year 1961 on beneficiaries under the Temporary Extended
    Unemployment Compensation Act. This study involved about -175,000
    claimants throughout the Nation. In fiscal year 1963, the Bureau published
    four more reports in the TEUC series “Family Characteristics of the Long-
    Term Unemployed,” bringing to six the number published to date. The
    reports indicated that the majority of TEUC beneficiaries had characteristics
    similar to those of workers generally, were the main support for
    themselves and their families, and were firmly attached to the labor force.
    Workers classified in the study as secondary wage earners also demonstrated
    a substantial employment history. The findings confirmed the need for
    establishing the TEUC program to assist the long-term unemployed.
    91
    Plans were made for another report on TEUC exhaustees which would
    combine the results of all four surveys with State and national data.
    Besides the family characteristics study, 13 States continued with special
    supplementary studies covering both TEUC and regular UI program claimants.
    During the year, data were tabulated for studies to be published in
    fiscal year 1964 of household adjustments and financial resources of TEUC
    claimants during their unemployment; of the labor force status of TEUC
    claimants 3 months after they had used up all of their benefits; and of
    family characteristics, adjustments, and resources of regular UI program
    claimants.
    High levels of unemployment which prevailed in most States during the
    last 5 years resulted in higher cost rates and focused attention on the need
    for more adequate and related financial taxing provisions.
    The following financing areas were those most frequently explored by
    State agencies during fiscal 1963: (1) Estimation of levels of benefit costs
    over a period of future years (availability of estimates of payout levels
    is a first step in more realistic planning of the program’s tax income); (2.)
    measures and indicators of reserve fund adequacy; (3) impact on taxes of
    limitations on the taxable wage base and the maximum tax rate; (4) impact
    on taxes of different experience rating techniques under varying economic
    conditions; and (5) impact upon tax income of benefit costs that do not
    enter into the rating process. (Costs in the case of item 5 include benefit
    payments not charged to any employer and benefit payments charged to
    employers who already are paying the maximum tax rate.)
    To make research more helpful to the unemployment insurance program,
    the Bureau encouraged State agencies to develop a continuous program
    which would use their resources in an integrated fashion and would relate
    research to all other areas of the unemployment insurance program.
    Administration
    In a long-range program to strengthen administration of the unemployment
    insurance program, the Bureau worked with State agencies in the
    following special areas: Improving organization, management, and supervision;
    reducing tax delinquency; eliminating deficiencies in the claims
    adjudication process; speeding up the benefit payment process and reducing
    overpayment errors; and installing automatic data processing equipment
    to reduce administration costs.
    The separation of claim services and employment services in large
    metropolitan areas made operationally feasible a direct line of authority
    and responsibility from the top unemployment insurance executive in the
    State agency to the local claims office. Thus, program-oriented management
    techniques were installed which were not possible under joint claims
    and employment operations.
    In considering techniques for reducing tax delinquency, the Bureau and
    State agencies agreed that field audits should be made of firms which, by
    92
    their past records, were most likely to become delinquent in the filing of
    reports and the payment of taxes. The audits should not be based on a
    random selection of firms.
    Assistance was given the States in training personnel in better factfinding
    and decision writing for the claims adjudication process. Cooperative
    effort was also made to reduce the time lapse in holding appeals
    hearings and in issuing decisions.
    Because of the volume of claims and the many processes which enter
    into making a benefit payment, there are inevitably some processing errors
    and some checks issued in the wrong amount, thus requiring review and
    correction. Techniques were developed, and will be tested, for using
    machine processes. If these techniques are applied successfully, payments
    will be expedited, many errors will be prevented, and claims personnel—
    freed from most manual clerical functions—will have more time for concentrating
    on claims interviews and determining eligibility for benefits.
    Enormous quantities of data are collected, processed, and used in the
    administration of the unemployment insurance program. Until recently,
    use of electronic data processing equipment, because of its cost, was feasible
    in only the large States. With the development of smaller, less costly
    systems, 17 States have made installations, 7 of them in the past year.
    Eight other States plan installations of such equipment in fiscal 1964, and
    seven expect to increase the capacity of present systems. Many original
    tabulating equipment installations, set up for purposes of processing tax
    returns and claims, have been applied to other functions, such as fraud
    detection, statistical analysis, and management analysis.
    711-471—64- -7 93
    Append ix table 1.—Selected employment service activities, U.S. totals for fiscal
    years 1956-63, by State for fiscal year 1963
    Year and State
    New
    applications
    1
    Total
    counseling
    interviews
    Individuals
    tested
    Placements
    Nonagricultural
    Agricultural
    1955-56 _______________________ 8,083,024 1,444 669 1,314,134 6 173, 684 9 248 459
    1956-57 ________ ________________ 8^ 546' 028 1, 507, 825 1,448,607 5, 957,490 9 002’ 052
    1957-58 _________________________ 10,412^ 879 1, 542,846 1,349, 924 5,235, 910 8 *709 763
    1958-59 - ______________________ 9,368, 746 1,734,170 1,609, 536 5,703 458 9, 615’ 163
    1959-60_____ ___________________ 9^ 598, 604 1,785, 541 1,760,754 6,082,753 9, 747’ 116
    1960-61___________________________ 10, 605j 108 1, 783, 310 i; 799; 730 5, 591,089 9,004 319
    1961-62 . ______________________ io; 413,532 2,020, 549 2,176, 709 6, 506,008 9,028 451
    1962-63___________________________ IL 045' 696 2,088,332 2, 300; 436 6,632,252 7,923; 543
    Alabama___ _____________________ ___ 148,759 20,418 38,379 116,874 72,755
    Alaska_________ _________ __ _________ 18,000 3,466 8', 013 9, 906 281
    Arizona_____________________________ 128, 000 18, 716 20; 782 112, 956 707 610
    Arkansas____________________________ 155, 625 28,719 33; 461 106, 726 258,486
    California___ ____ -__ ______________ 1,483j 561 203,465 22L 782 797,060 273 961
    Colorado.. . ____ ___________ ___ ' 135^ 596 20; 107 30; 802 96; 765 88, 587
    Connecticut_________ __________ —__ 180' 680 32,766 29; 438 100, 844 11,457
    Delaware __ _ ____ ___________ - 18^254 4,273 3; 605 6; 992 7,302
    District of Columbia______ ____ ___ 70, 904 19,244 21, 549 51,708 0
    Florida______ ___ ___ _ ____ ___________ 245,452 31,496 53,815 252,309 131,465
    Georgia__________ _______ ____ ____ ___ 195i 056 33,063 46; 523 153', 630 125,812
    Guam__________ __ _ ______ ___ _ L 668 4 81 L 251 0
    Hawaii.__ ____ _ ____ ___________ 4L 562 5,010 6,416 14, 361 2, 772
    Idaho_______ ______ ___ ____ - - 53^ 988 10,178 10; 669 40; 381 130 923
    Illinois______________ -__ _________ .. 429, 693 85,028 106; 133 211, 737 88,349
    Indiana______ ______ _________ _ 269,678 35; 462 62,925 100; 683 52; 867
    Iowa_______ _ ___ ____ ___________ . 102^ 281 19', 764 3i; 858 87; 773 31, 565
    Kansas_________ _________________ 10L 839 23; 122 26,097 89; 567 17; 460
    Kentucky____________ _____________ 152^ 967 3L 244 55; 651 67; 909 101,792
    Louisiana__________________________ 144; 384 22', 805 3L 919 85; 782 243,773
    Maine____________ _________ ______ 48' 483 13; 306 12; 123 23; 334 9,884
    Maryland-_____ _________ _____ 166i 955 26; 957 2L 429 87; 912 116,093
    Massachusetts____________________ . 326; 072 61', 901 45; 856 172; 754 48,460
    Michigan____ _______________ _____ 615', 641 8L121 89; 015 174; 832 138,516
    Minnesota_____________ __________ .. 190; 342 24; 590 52; 152 102; 968 45,009
    Mississippi_______ ____ ____ __ ________ 140, 700 39; 000 4i; 278 108; 826 1,332, 731
    Missouri_________ _____ __________ 239; 403 43; 619 5L 456 102; 724 ' 189; 740
    Montana_____ . _________________ . _ 53; 637 19; 056 19; 655 35; 820 33', 213
    Nebraska_______ ________________ 58; 295 17; 411 23, 645 63; 129 29; 044
    Nevada____ ___ __ ________ _________ _ 42; 863 5, 589 8,393 36; 324 9; 071
    New Hampshire_______ .. . .._______ 43', 604 9; 754 7, 966 1/ 397 4', 458
    New Jersey___ ______ . ____ — 338; 735 46,443 39, 598 149,009 134,193
    New Mexico.__ __ . .______ _ - 61', 894 12; 563 15; 427 49', 388 20', 629
    New York__ __ _ ___________ ___ _ . 940; 232 210; 594 121,494 836; 877 125; 402
    North Carolina_______________ __ ___ _ 237; 968 43; 213 66,138 157; 620 588; 953
    North Dakota______ __________________ 30; 127 6; 122 13, 026 29; 745 18; 092
    Ohio__________ ____________________ 612; 410 124,329 148,402 243,009 20L 247
    Oklahoma________________ _________ J 3L 067 3L 461 38,918 160; 369 32; 588
    Oregon___________ ____ — —____ _ 127; 679 34; 856 28; 120 78; 333 442; 991
    Pennsylvania___ ___ ________________ _ 596; 869 182,026 115; 602 253, 582 270; 377
    Puerto Rico____ _____ ________ _ . 152; 067 32,169 24; 400 45; 990 12; 885
    Rhode Island____________ _ _________ 55,091 13,207 12,227 32; 537 '316
    South Carolina______________________ 108; 802 Hi 580 33,656 87; 779 152,662
    South Dakota__ ____ _____________ . .. 3i; 437 7; 490 9; 849 26,288 12; 808
    Tennessee____________________________ 154; 297 28; 979 6i; 514 HL 605 669; 909
    Texas_______ ________ _ ___ ___ ______ 721, 972 134', 354 13i; 146 502,480 57i; 391
    Utah________________________________ 6L 641 1< 384 28; 941 5i; 395 28; 461
    Vermont_______ ________ ____ — ____ 22,396 2, 441 4,026 15; 919 L468
    Virginia_____ ________________ .____ 156; 801 41,368 45,294 108; 749 48,580
    Virgin Islands____ ___ ____ _________ __ 2; 245 1,001 ' 545 L 450 9
    Washington__- -___ __ ____________ 186; 803 38, 990 48,086 88,146 240,389
    West Virginia____ ______ ____________ 8i; 890 22; 122 IL 362 44; 381 i 479
    Wisconsin—__ ___________________ __ 206; 292 48,052 66,015 108', 186 34,654
    Wyoming____________________________ 23; 039 3; 934 2; 784 15; 181 8; 624
    1 The number of applications taken should not be interpreted as a measure of the total number of new
    job applicants at employment service offices since there are some types of applicants for whom written
    applications are not taken.
    94
    See footnotes at end of table.
    Ap p e n d ix t a b l e 2.—Significant provisions in State unemployment insurance laws, June 30, 1963— Continued
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    Ap p e n d ix t a b l e 3.— Claims, beneficiaries, amount, and duration of benefits under State programs, U.S. totals for fiscal years 1953-63,
    by State for fiscal year 1963
    [Note: Data for fiscal years 1955-59 include activities under the program of unemployment compensation for Federal employees and represent an unduplicated count for
    SS.2
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    Ap p e n d ix t a b l e 4.—Subject employers, covered employment, and selected unemployment insurance financial data under State programs,
    U.S. totals for fiscal years 1953-63, by State for fiscal year 1963 1
    State reserves for benefits
    June 30, 1963»
    Percent of
    taxable
    wages2
    odQOQOt^OidiOT!?^
    4.0
    2.3
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    3.7
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    7.0
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    i
    Civilian war benefits_________ _________ ____________ _____ ____ ______ ___ I Emergency relief acts_________________ _______ __________________________
    Civil Air Patrol______________ _____ _____________ _____ _____ ___________
    Reserve Officers Training Corps----------------------------------------------------------------
    Maritime war risk______________________________________________________
    Total_________________ ____ ____________ ____ __________ -............. ............
    >unt charged establishments under Public Law 86-767; 74 Stat. 909 (thousands)—
    ergency relief cases still active:
    Nonfatal___________________________________________ _______ ____ _____
    M
    127
    T a b l e 2.— Operations under the Longsorehmen’s and Harbor Workers1 Compensation Act, and extensions thereof, July 1, 1958, to
    June 30, 1963
    CO
    c©
    o T-4
    § §
    109,997
    co^co
    114,657
    iBSil
    17,864,635
    OJ
    CD
    Cr—i<
    s 8
    89,234
    95,094
    17,194,333
    Fiscal year
    CD
    O
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    1 88,193
    96,154
    33^°
    £S2£2
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    X. San Francisco_______
    X. Nashville___________ XI. A tlanta4_______ ____ _
    g
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    255
    Appen dix table C.—Number of minors found employed in nonagricultural establishments
    in violation of the child labor provisions of the Fair Labor Standards Act,
    by region, State, and age of minor, fiscal year 1963
    See footnote at end of table.
    Region and State
    Number of minors illegally
    Total
    employed
    Under
    16 years
    of age
    16-17 years
    of age in
    hazardous
    occupations
    All regions_____________________ ______ _______________ 110,348 5,584 4,764
    I. Boston__ ___________ _ _ _______ ___________________ 545 176 369
    Connecticut______________________________________ 53 3 50
    Maine___________________________________________ 127 74 53
    Massachusetts____________________________________ 231 50 181
    New Hampshire___________________________________ 42 22 20
    Rhode Island_____________________________________ 76 20 56
    Vermont_________________________________________ 16 7 9
    II. New York City___________________ ___________________ 981 486 495
    New Jersey_______________________________________ 319 116 203
    New York________________________________________ 662 370 292
    III. Chambersburg_______________________________________ 694 329 365
    Delaware_________________________________________ 6 1 5
    District of Columbia_______________________________ 33 6 27
    Maryland------------------------------------------------------------- 243 155 88
    Pennsylvania_____________________________________ 412 167 245
    IV. Birmingham_________________________________________ 773 425 348
    Alabama_________________________________________ 201 103 98
    Arkansas_________________________________________ 200 119 81
    Louisiana________________________________________ 180 89 91
    Mississippi_______________________________________ 192 114 78
    V. Cleveland____________________________________________ 867 604 263
    Michigan_________________________________________ 511 404 107
    Ohio_____________________________________________ 1 356 1 200 156
    VI. Chicago ____ __________________________________ 475 173 302
    Illinois___________________________________________ 121 69 52
    Indiana__________________________________________ 1 87 37 1 50
    Minnesota________________________________________ 217 59 158
    Wisconsin________________________________________ 50 8 42
    VII. Kansas City__________________________________________ 878 576 302
    Colorado_________________________________________ 107 58 49
    Iowa . __________________________________________ 54 26 28
    Kansas___________________________________________ 400 311 89
    Missouri ___ ___ __ __ __________________________ 111 63 48
    Nebraska_________________________________________ 123 62 61
    North Dakota____________________________________ 3 1 2
    South Dakota--------------------------------------------------------- 57 43 14
    Wyoming________________________________________ 23 12 11
    III. Dallas _____________________________________________ 1,884 1,228 656
    New Mexico. --------------------------------------------------- 68 45 23
    Oklahoma________________________________________ 323 191 132
    Texas____________________________________________ 1,493 992 501
    IX. San Francisco________________________________________ 1,410 783 627
    Alaska __________________________________________ 3 0 3
    Arizona--- ------------------------------------------------------------- 39 28 11
    California ________________________________________ 735 418 317
    Hawaii___________________________________________ 107 32 75
    Idaho____________________________________________ 3 1 2
    Montana_________________________________________ 16 5 11
    Nevada__________________________________________ 30 24 6
    Oregon___________________________________________ 40 16 24
    Utah_____________________________________________ 344 210 134
    Washington----------------------------------------------------------- 92 48 44
    Guam____________________________________________ 1 1 0
    256
    Appendi x table C.—Number of minors found employed in nonagricultural establishments
    in violation of the child labor provisions of the Fair Labor Standards Act,
    by region, State, and age of minor, fiscal year 1963—Continued
    1 Includes minors illegally employed under the provisions of both the Fair Labor Standards Act and the
    Public Contracts Act as follows: All regions, 3; Ohio, 1; Indiana, 2.
    Region and State
    Number of minors illegally
    employed
    Total
    Under
    16 years
    of age
    16-17 years
    of age in
    hazardous
    occupations
    X. Nashville____________________________________________ 1,003 368 635
    Kentucky________________________________________ 279 106 173
    Tennessee--------------- ------------ ------------------------------ 282 129 153
    Virginia---------------------------------------------------------------- 337 105 232
    West Virginia_____________________________________ 105 28 77
    XI. Atlanta _________________ __________ -____ _______ 687 350 337
    Florida 248 139 109
    Georgia__________________________________________ 348 183 165
    South Carolina____________________________________ 91 28 63
    Santurce, P.R __________ ______ _ - - - - - -_____ - - - 11 8 3
    Puerto Rico____________________________________________ 10 7 3
    Virgin Islands__________________________________________ 1 1 0
    North Carolina_____________________________________________ 140 78 62
    Appen dix table D.—Number of minors found employed on farms in violation of
    the child labor provisions of the Fair Labor Standards Act, by region, State, and age
    of minor, fiscal year 1963
    See footnote at end of table.
    Region and State
    Number of minors illegally employed
    Total
    14-15
    years
    of age
    10-13
    years
    of age
    9 years
    of age
    and
    under
    All regions________________________________________
    I. Boston________ ____ _____________________________
    Maine___________ ____________________________
    Massachusetts_________________________________
    Vermont_____________________________________
    II. New York City___________________________________
    1 6,926 1,987 3,523 1,395
    121 41 56 24
    117
    13
    38
    12
    55
    01
    24
    0
    0
    0 0 0 0
    III. Chambersburg____________________________________
    Maryland____________________________________
    5 3 1 1
    5 3 1 1
    IV. Birmingham_____________________________________
    Alabama_____________________________________
    Arkansas_____________________________________
    Louisiana_____________________________________
    Mississippi___________________________________
    V. Cleveland_______________________________________
    Michigan_____________________________________
    Ohio_________________________________________
    VI. Chicago__________________________________________
    Illinois_______________________________________
    Indiana______________________________________
    Minnesota____________________________________
    Wisconsin____________________________________
    11,502 408 826 264
    1 512
    1503
    1 221
    266
    132
    144
    71
    61
    314
    257
    108
    147
    64
    101
    41
    58
    244 101 105 38
    87
    157
    39
    62
    34
    71
    14
    24
    230 109 101 20
    37
    125
    10
    58
    29
    46
    10
    24
    8
    64
    0
    29
    0
    15
    0
    5
    257
    Append ix tab le D.—Number of minors found employed on farms in violation of
    the child labor provisions of the Fair Labor Standards Act, by region, State, and age
    of minor, fiscal year 1963—Continued
    Region and State
    Number of minors illegally employed
    Total
    14-15
    years
    of age
    10-13
    years
    of age
    9 years
    of age
    and
    under
    VII. Kansas City... .. ________________________________ 164 70 69 25
    Colorado___________ ________________________ 72 40 24 8
    Iowa___________________________ ____________ 5 0 5 0
    Missouri. _ __ _ ______________________ _ _____ 68 22 32 14
    North Dakota______________ ____________ _____ 19 8 8 3
    VIII. Dallas____________________ . . .... 1 1,747 461 912 363
    New Mexico_________ __________________ ______ 18 7 9 2
    Oklahoma____ ________________ _ -________ 1 176 42 100 33
    Texas______________________ _______________ 11,553 412 803 328
    IX. San Francisco _______ ________________ ___________ 345 117 153 75
    Arizona______________________________ _______ 21 12 7 2
    California____________________________________ 140 47 60 33
    Idaho____ ________ _______ __________________ 25 5 12 8
    Oregon_______ ___ _______________ ____________ 44 9 22 13
    Utah___ _ ___________________ ______ ______ 115 44 52 19
    X. Nashville____________________ ___________________ 356 96 173 87
    Kentucky_____________________ ____________ _ 18 6 10 2
    Tennessee____ _______ _______________________ 295 77 145 73
    Virginia___________ ____________ ___________ 43 13 18 12
    XI. Atlanta________________________________ ________ 11,646 407 855 379
    Florida_____ _ _____ ___ ____________________ 1257 88 126 42
    Georgia_______ ______________________________ 1 764 182 406 173
    South Carolina___ ____________________________ 1 625 137 323 164
    Santurce, P.R_______________________________ __________ 1 53 22 25 5
    Puerto Rico________________________________________ 1 53 22 25 5
    North Carolina _______________________________________ 513 152 247 114
    J Includes illegally employed minors for whom no age was reported: All regions, 21; Alabama, 2; Arkansas,
    1; Louisiana, 1; Oklahoma, 1; Texas, 10; Florida, 1; Georgia, 3; South Carolina, 1; Puerto Rico, 1.
    Appen dix table E.—Findings in regular and special safety and health inspections
    made under the Public Contracts Act, by region and State, fiscal year 1963
    See footnotes at end of table.
    Region and State
    Number of establishments
    inspected
    Establishments found
    in violation of safety
    and health provisions
    All
    States
    By Federal
    inspectors
    By State
    inspectors
    By Federal
    inspectors
    By State
    inspectors
    United States_____________________ 1 4, 520 2,136 2,384 1,830 846
    I. Boston___________________________ 363 42 321 36 72
    Connecticut2_________________ 90 0 90 0 0
    Maine_______________________ 20 8 12 6 0
    Massachusetts2______ _________ 185 0 185 0 72
    New Hampshire_______________ 20 20 0 17 0
    Rhode Island 2_____ ____ ______ 34 0 34 0 0
    Vermont______________________ 14 14 0 13 0
    II. New York City_____ ____ _________ 814 6 808 5 341
    New Jersey2.. ____ _________ 295 0 295 0 99
    New York 2___ _______________ 519 6 513 5 242
    258
    Appendix table E.—Findings in regular and special safety and health inspections
    made under the Public Contracts Act, by region and State, fiscal year 1963—Con.
    Region and State
    Number of establishments
    inspected
    Establishments found
    in violation of safety
    and health provisions
    All
    States
    By Federal
    inspectors
    By State
    inspectors
    By Federal
    inspectors
    By State
    inspectors
    III. Chambersburg------------------------------ 524 117 407 106 8
    Delaware__________________ - 5 5 0 4 0
    District of Col rnn hi a . 35 2 33 2 3
    Maryland____________ ___ . 93 93 0 84 0
    Pennsylvania___________ _____ 391 17 374 16 5
    IV. Birmingham_____________________ 216 199 17 178 3
    Alabama____ ...______ ______ 98 98 0 79 0
    Arkansas i 2________ ______ .. .. 17 0 17 0 3
    Louisiana_______ ____ ____ _____ 59 59 0 58 0
    Mississippi___________________ 42 42 0 41 0
    V. Cleveland------------------------------------ 279 279 0 255 0
    Michigan_________ .. _____ 125 125 0 116 0
    Ohio..'.______________________ 154 154 0 139 0
    VI. Chicago___________ ______________ 377 373 4 287 0
    Illinois________ . ____________ 119 119 0 87 0
    Indiana...____ ______ _______ 54 54 0 49 0
    Minnesota____ ______ _______ 77 77 0 70 0
    Wisconsin------------------------------- 127 123 4 81 0
    VII. Kansas City______________________ 194 146 48 136 35
    Colorado 2____ ____ _ ______ 33 2 31 2 23
    Iowa__________ ____ __________ 29 29 0 25 0
    Kansas2_________ ______ _____ 17 0 17 0 12
    Missouri_________ __________ 93 93 0 89 0
    Nebraska_____________________ 16 16 0 15 0
    North Dakota_________________ 1 1 0 1 0
    South Dakota_________________ 4 4 0 4 0
    Wyoming-------------------------------- 1 1 0 0 0
    VIII. Dallas___________________________ 354 349 5 320 4
    New Mexico__________________ 27 27 0 25 0
    Oklahoma____________________ 68 63 5 59 4
    Texas________________________ 259 259 0 236 0
    IX. San Francisco____________________ 778 154 624 126 351
    Alaska_______________________ 5 5 0 5 0
    Arizona______________________ 33 33 0 27 0
    California2__ _______ _____ 557 1 556 1 321
    Hawaii2____ _________________ 21 0 21 0 14
    Idaho__________________ ______ 6 1 5 1 3
    Montana________________ ____ 0 0 0 0 0
    Nevada_____ _________________ 1 1 0 1 0
    Oregon__________ _ _________ 54 54 0 43 0
    Utah_________________________ 26 26 0 19 0
    Washington___________________ 75 33 42 29 13
    X. Nashville________________________ 248 148 100 142 8
    Kentucky__ ___ ______ _______ 59 59 0 56 0
    Tennessee_________ __________ 84 84 0 81 0
    Virginia 2_____________ _______ 94 1 93 1 7
    West Virginia-------------------------- 11 4 7 4 1
    XI. Atlanta...______ _________________ 224 224 0 171 0
    Florida______________ ___ _____ 102 102 0 83 0
    Georgia______________________ 90 90 0 69 0
    South Carolina------------------------- 32 32 0 19 0
    Santurce, P.R__________________________ 17 17 0 16 0
    North Carolina2____ .____ ____ ____ _____ 132 82 50 52 24
    i Does not include 200 coal mine inspections made by the Federal Bureau of Mines pursuant to an agreement
    with the Divisions. In addition, 2,597 inspections were made to determine compliance with corrections
    required on first inspection.
    2 Working arrangement with the State whereby State inspectors make inspections.
    259
    260
    Append ix table G.—Minimum hourly wage rates recommended or in effect in
    Puerto Rico as of June 30, 1962, and June 30, 1963
    Industry and classification
    Minimum hourly wage
    rate
    Effective date
    jf latest rate
    June 30, 1962 June 30,
    1963
    Alcoholic beverage and industrial alcohol:
    General classification_________________________ _________ $1.15 $1.15 Nov. 3, 1961
    New coverage classification--------------------------------------------- . 86,1.00 1.00 Dec. 7, 1962
    Artificial flower, decoration, and party favor__________________ .70, .80^ .85 Oct. 5, 1962
    Banking, insurance, and finance:
    General classification__________________________________ 1.15 1.15 Nov. 3, 1961
    New coverage classification-------------------------------------------- 1.00 1.00 Do.
    Button, jewelry, and lapidary work:
    Gem stone classification________________________________ 1.15 1.15 Nov. 3, 1961
    Industrial jewel and precious jewelry classification---------------- 1.15 1.15 Do.
    Button and buckle classification_______________ ___ ___ __ . 72J^ .74 Oct. 7, 1962
    Hair accessories classification____________________ _ ___ .83 .88 Do.'
    Hair ornaments classification------------------------------------------ .87^ .95 Do.
    Metal expansion watch band classification------------------------- 1.00 1.00 Do.
    Rosary and native jewelry classification---------------------------- .54 .56 Do.
    Plastic costume jewelry classification-------------------------------- .72^ .77 Do.
    General classification---------------------------------------------------- .77 .82 Do.
    New coverage classification--------------------------------------------- .70 .77 Do.
    Chemical, petroleum, and related products:
    Agricultural chemicals, fertilizer mixing, hormones, antibiotics,
    and adrenalin, petroleum refining, and pipeline coating tapes
    classification______________________________________ 1.15 1.15 Nov. 3, 1961
    Drugs, medicines, bay oil, aromatic alcohol, and toilet preparation
    classification__________________________________ .88^ .95 Mar. 18,1963
    Miscellaneous chemical and petroleum products classification.. 1.06,1.09 1.15 Do.
    Oil well drilling classification------------------------------------------ 1.15 1.15 Dec. 5, 1961
    New coverage classifications:
    Bay oil and aromatic alcohol_________________________ .75 .95 Mar. 18,1963
    General__ . _ __________________ _____________ . 70,1.00 1.00 Do.
    Children’s dress and related products:
    Hand-embroidery classification---------------------------------------- .68 .75 Jan. 7, 1963
    Other operations classification___________________________ • 87^ ■ 92J4 Do.
    New coverage classification--------------------------------------------- .70 1.00 Do.
    Communications, utilities, and transportation:
    Drivers, mechanics, and clerical workers in motor carrier
    transport and express classification------------------------------ 1.15 1.15 Nov. 3,1961
    Other workers in motor carrier transport and express classification_
    _ ______________________________________ 1.03)4 1.07 Oct. 10,1962
    Radio broadcasting classification-------------------------------------- 1.15 1.15 Nov. 3,1961
    General classification___________________________________ 1.15 1.15 Do.
    New coverage classification_____________________________ 1.00 1.00 Do.
    Construction, business service, motion picture, and miscellaneous:
    General classification___________________________________ 1.15 1.15 Nov. 3,1961
    Janitorial service classification___________________________ 1.09 1.15 Nov. 19,1962
    New coverage classification_____________________________ .70,-83,1.00 1.00 Do.
    Corsets, brassieres, and allied garments:
    General classification___________________________________ .99 1.04 Dec. 29,1962
    New coverage classification_____________________________ .70 1.00 Do.
    Electrical, instrument, and related products:
    Classification A (shaver and hair dryer, storage battery,
    drafting machine, electrical terminal and connector, television
    antenna and lead-in cable, and portable hand tools).. 1.15 1.15 Nov. 3,1961
    Classification B (electric irons, toaster elements, and hot
    water heaters; exposure meters, ammeters, voltmeters,
    accelerometers, and panel instruments; circuit breakers and
    service entrance equipment; armatures and field coils;
    switches and fluorescent starters; coils, including magneto
    coils, and breakers; solenoids, relays, including telephonetype
    relays, power-type relays and magnetic relay elements;
    electric wave filters; gyroscopes and related equipment;
    lighting fixtures and fluorescent lighting lamps (except light
    bulbs and Christmas lighting sets); floor polishers; soldering
    guns; electronic heating devices; electronic controls for
    auto headlight dimmers; electronic data processing machines
    and systems; soil moisture testing equipment; aircraft
    test instruments; strain gauge transducers; photoelectric
    cells; tape recorder heads and erase head assemblies;
    electronic guns for television picture tubes; and the repair
    and rewinding of electric motors and other electrical equipment)
    _________ _________________________ 1.15 1.15 Do.
    Classification C (capacitors, transistors, coils and coil forms,
    hermetic seals, crystal units, rectifiers, electronic tubes, television
    picture tubes, television sets, refrigerators, phonographic
    pickup cartridges, electric baseboard heating units,
    heating pads and massage pads, Christmas lighting sets,
    thermometers, drafting instruments, surgical administration
    sets, and watches)__________________________________ 1.15 1.15 Mar. 13,1962
    261
    Append ix tab le G.—Minimum hourly wage rates recommended or in effect in
    Puerto Rico as of June 30, 1962, and Jnne 30, 1963—Continued
    Industry and classification
    Minimum hourly wage
    rate
    Effective date
    of latest rate
    June 30,1962 June 30,
    1963
    Electrical, instrument, and related products—Continued
    Classification D (lenses)________________________________ $1.03^ $1.10 June 21,1963
    Classification E (transformers, wire-wound resistors, and all
    products and activities not specifically included in any other
    classification)_____________________________ _ _____ 1.09 1.15 Do.
    New coverage classification_____________________________ .70 1.00 Do.
    Fabric and leather glove:
    Hand-sewing on fabric gloves classification________________ .28 .28 June 2,1962
    Aug. 3,1963
    Do.
    Hand-sewing on leather gloves classification_______________ .44 .46
    Other operations on hand-sewn gloves classification_________ .65 .70
    Machine operations on machine-~sewn leather gloves classification_______________
    ___________ _______________ ____ _ .88 .93 Do.
    Machine operations on machine-sewn fabric gloves classification_____________________
    _________________________ .90 .95 Do.
    Other operations on machine-sewn gloves classification______ .84 .91 Do.
    New coverage classification______ -_________________ ____ .70 .91 Do.
    Fabricated plastic products:
    Dinnerware, sprayer, and vaporizer classification___________ 1.15 1.15 Nov. 3,1961
    June 21,1963
    Do.
    Do.
    Phonograph record classification______________________ _ 1.10J-S
    .92
    1.15
    Wall tile classification__________________________________ .96
    General classification___________________________________ .85 .89
    New coverage classification_____________________________ .70 .80 Do.
    Food and related products:
    Biscuit and cracker classification_________________________ 1.09 1.15 Apr. 12,1963
    Canning and preserving classification__________________ _ .92 1.00 Do.
    Citron brining and fruit, vegetable, nut, and green coffee
    packing classification_________________________________ .74)4 .78 Do.
    Yeast and canned tuna fish classification__________________ 1.15 1.15 Nov. 3,1961
    General classification__________________________ ________ .97)4 1.02 Apr. 12,1963
    New coverage classification A (soft drinks, rice, crackers,
    pastry and cakes; frozen fish packing; bottling or canning of
    olives, capers, and oils; ice cream chauffeurs; alimentarypastes
    pressmen and helpers; master bread bakers, dough
    mixers, dough-machine operators and bench hands; canning
    and preserving of fruits, vegetables, and other food
    products)______________________________________ .63,. 84,. 85,
    . 92,. 98,1.00 1.00 Do.
    New coverage classification B (milk and milk products; mixed
    feed; and ice cream)___________________ ______________ . 66,. 75 .85 Do.
    New coverage classification C (coffee roasting; other bread
    workers; and other alimentary-pastes workers)___________ . 67,. 69 .80 Do.
    New coverage classification D (general, including candy)____
    Handkerchief, scarf, and art linen:
    .57)4,-70 .75 Do.
    Hand-sewing classification______________________________ .29 .30 Dec. 7,1962
    Other operations classification_____ _____________________ .55 .56 Do.
    Hand-sewing on oblong scarves classification_______________ .29 .71 Do.
    Other operations on oblong scarves classification___________ .55 .87 Do.
    New coverage classification_____________________________ .70 .71 Do.
    Hosiery___________________________________________ ______ . 70,. 78 .78 Oct. 28,1962
    Leather, leather goods, and related products:
    Belt classification_ ____________________________________ .92 1.00 June 29,1963
    Hide curing classification_______________________________ 1.09 1.15 Do.
    Leather tanning and finishing classification________________ .73 .78 Do.
    Sporting and athletic goods cFassification__________________ .75 .81 Do.
    General classification________ __________________________ .69 .74 Do.
    New coverage classification____________________ _________ .70 .74 Do.
    Lumber and wood products:
    Carpet grippers classification_________ __________________ 1.15 1.15 Nov. 3,1961
    Furniture and miscellaneous wood products classification___ ■ 80)4 .86 Apr. 7,1963
    Lumber, millwork, and balsa wood toys classification_______ .92 .97 Do.
    Swimming pool equipment classification__________________ 1.03)4 1.0314 Nov. 3,1961
    New coverage classifications:
    Billiard table. ________________ - .. ______________ . 75,. 86,1.00 1.00 Apr. 7,1963
    Table top and kitchen cabinet craft masters and supervisors___________________________________________
    .75,-86,1.00
    .70
    1.00 Nov. 4,1961
    General______________________ ___________________ .86 Apr. 7,1963
    Men’s and boys’ clothing and related products:
    Work clothing and separate trousers classification_________ .92 .97 Jan. 3,1963
    General classification _ ________________________________ .86 .91 Do.
    New coverage classification_____________________________ .70 .82)4 Do.
    Metal, machinery, transportation equipment and allied products:
    Fabricated wire products classification____________________ 1.15 1.15 Nov. 3,1961
    Mar. 13,1962
    Do.
    Metal spring classification______________________________ 1.12 1.12
    Slide fastener classification______________________________ 1.09 1.09
    Wire drawing classification______________________________ 1.15 1.15 Do.
    General classification. _________________________________ 1.15 1.15 Nov. 3,1961
    New coverage classification__________________ ___________ .70 1.00 June 21,1963
    262
    Appendix table G.—'Minimum hourly wage rates recommended or in effect in
    Puerto Rico as of June 30, 1963, and June 30, 1963—Continued
    Industry and classification
    Minimum hourly wage
    rate
    Effective date
    )f latest rate
    June 30,1962 June 30,
    1963
    Needlework and fabricated textile products:
    Slacks and related products classification--------------------------- $0.94^ $1.00 Jan. 6,1963
    Knit gloves and crocheted slippers classification------------------ .87^ . 95 Do.
    Hand-crocheting and hand-embroidery of crocheted hats classification_______-----------------------------------------------------
    .69 .75 Jan. 6,1963
    Other operations on crocheted hats classification----------------- .94^ .98 Do.
    Ge neral classification _ _________________________________ .95^ 1.03j^> Do.
    New coverage classification_____________________________ .70 1.00 Do.
    Paper, paper products, printing, and publishing:
    Paper box and paper box partition classification------------------ 1.15 1.15 Nov. 3,1961
    Pulp, paper, and paperboard, paper bag, daily newspaper and
    news syndicate, photoengraving, filing cards and indexes,
    fototype letters, paper for sanitary use, and commercial
    printing by the silk screen process classification------------- 1.15 1.15 Nov. 3,1961
    General classification------------------------ ------ ---------------------- 1.03JS 1.06 June 3,1963
    New coverage classification_____________________________ .70 .78 Do.
    Rubber products:
    Tire recapping classification_____________________________ 1.06 1.15 Mar. 18,1963
    Rubber footwear classification___________________________ .95^ .98 Do.
    Rubber bucket classification------------------------------------------- .86 .93 Do.
    Miscellaneous rubber products classification----------------------- 1.15 1.15 Nov. 3,1961
    New coverage classification_____________________________ .70 1.00 Mar. 18,1963
    Shoes and related products:
    G eneral classification----------------------------------------------------- .71 .80 Do.
    New coverage classification--------------------------------------------- .70 . 82^2 Do.
    Stone, clay, glass, cement, and related products:
    Abrasive products, cement, dry cement mixes, glass and glass
    products, hot asphaltic plant mix, ready-mixed concrete,
    concrete block and tile, concrete pipe, pre-cast concrete construction
    components, structural clay products, and ceramic
    floor and wall tile classification----------------------------------- 1.15 1.15 Nov. 3,1961
    Art pottery classification------------------------------------------------ • 65H .72 June 3,1963
    Artificial teeth classification_____________________________ 1.15 1.15 Nov. 3,1961
    Asbestos cement products, high purity silicon, and crushed
    stone, sand, and gravel classification---------------------------- 1.15 1.15 Dec. 15,1961
    Mica classification-------------------------------------------------------- .83 .92^ June 3,1963
    Vitreous and semi-vitreous china food utensils classification— .89^ .95 Do.
    General classification___________________________________ 1.03^ 1.06 Do.
    New coverage classifications:
    Terrazzo and marble tiles------------------------------------------ .92 1.00 Do.
    General___________________________________________ .70 .75 Do.
    Straw, hair, and related products:
    Artists’ brush and native handicraft products classification.— .55 .65 Nov. 2,1962
    Hair and bristles processing and other straw, hair and related
    products and new coverage classification---------------------- . 65^,. 70 .70 Do.
    Hair piece and doll wig classification--------------------------------- • 80J3 • 80^i Do.
    Sugar manufacturing:
    General classification----------------------------------------------------- 1.09^ 1.12^ Dec. 7,1962
    New coverage classification_____________________________ .70 1.00 Do.
    Sweater and knit swimwear:
    General classification----------------------------------------------------- 1.04 1.12 Do.
    New coverage classification_____________________________ .70 1.00 Do.
    Textile and textile products:
    Mattress and pillow classification------------------------------------- 1.15 1.15 Nov. 3,1961
    Bag cleaning and repairing classification---------------------------- .66 .70 Oct. 28,1962
    Broad woven fabrics classification------------------------------------ .71^4 .73 Do.
    Hooked rug classification:
    Multiple-needle power-driven machine operations----- .83^ .88 Do.
    Other operations------------------------------------------------------ . 64 .68 Do.
    Yarn classification ______________________________ ______ .75 .79 Do.
    .71^ .75 Do.
    New coverage classifications:
    Mattresses and bedsprings:
    1.00 1.00 Nov. 4,1961
    Skilled workers________________________________ .92 1.00 Oct. 28,1962
    General ______________________________________ -- .70,. 75 .85 Do.
    Tobacco: .40 .47^ Aug. 10,1963
    .75 .80 Do.
    .83 .85 Do.
    General classification ________________________________ .99 1.00 Do.
    New coverage classification------------ ------- ----------------------- .70 .70 Nov. 4,1961
    263
    Append ix tab le G.—Minimum hourly wage rates recommended, or in effect in
    Puerto Rico as of June SO, 1962, and June 30, 1963—Continued
    Industry and classification
    Minimum hourly wage
    rate
    Effective date
    of latest rate
    June 30, 1962 June 30,
    1963
    Wholesaling, warehousing, and other distribution:
    General classification._ _ ________________ _____ ____ $1.15
    .65
    .70
    .70
    .70
    1.00
    .70
    .86
    .70
    $1.15
    .78
    .88
    1.00
    .75
    1.00
    .75
    .92^
    .75
    Nov. 3,1961
    Aug. 29,1963
    Do.
    Nov. 3,1963
    Do.
    Nov. 3,1961
    Dec. 7,1962
    Do.
    Do.
    New coverage classifications:
    Janitors, messengers, and baggers in retailing___________
    Other workers in retailing___________________________
    Meat cutters ________ ________ ____ ____________
    Gasoline service stations____________________________
    Other new coverage ___ ________ _ ___ _ _______ __
    Women’s and children’s underwear and women’s blouse:
    Hand-sewing classification _________________________
    Other operations classification_______ ______ __________
    New coverage classification____ ___ ___ __ __ _-______ _
    Appendi x tab le H.—Cumulative percentage distribution of covered employees in
    Puerto Rico at wage order minimum rates in effect or recommended as of June 30,
    1963
    Minimum wage rate (cents
    per hour)
    Cumulative percentage
    distribution
    Minimum wage rate (cents
    per hour)
    Cumulative percentage
    distribution
    Old
    coverage
    New
    coverage
    Old
    coverage
    New
    coverage
    Less than 40.0________ _ 24
    5
    6
    12
    19
    Less than 100.0-. _________ 33
    38
    51
    64
    100
    38
    Less than 50.0____ ______ 100.0 or less-.____ ________ 100
    Less than 60.0. - _________ _ Less than 110.0-- _______ -
    Less than 70.0________ _____ Less than 115.0____________
    Less than 80.0___ ____ __ 6
    38
    115.0 or less__________ ____
    Less than 90.0_____________
    Appen dix tab le I.—Minimum hourly wage rates in effect in the Virgin Islands as
    of June 30, 1963
    Industry and classification
    Minumum
    hourly
    wage rate
    Effective date
    Air transportation industry 1__________________________________________
    Alcoholic beverage and industrial alcohol industry-------------------------------------
    Banking, real estate, accounting, and insurance industry 1_________________
    Bay rum and other toilet preparations industry__________________________
    Communications and public utilities industry:
    Custodial workers and brush cutters classification_____________________
    General classification______________________________________________
    Distribution, trucking, and construction industry:
    Retailing classification____________________________________________
    General classification______________________________________________
    Jewelry, pen, thermometer, industrial belting, and miscellaneous metal proucts
    industry_____________________________________________________
    Assembling and manufacturing of clocks and watches---------------------------
    Shipping, marine transportation, and ship and boat building industry 1---------
    Seamen classification______________________________________________
    Miscellaneous industry:
    Textile classification______________________________________________
    General classification______________________________________________
    $1.15
    .80
    1.15
    1.00
    .90
    1. 00
    .72
    .90
    .75
    .75
    1.15
    1.00
    .65
    .70
    Nov. 3,1961
    Nov. 10,1961
    Nov. 3,1961
    Nov. 10,1961
    Do.
    Do.
    Do.
    Nov. 3,1961
    Do.
    Nov. 10,1961
    Nov. 3,1961
    1 The minimum rate applicable to employees newly covered as a result of the Fair Labor Standards
    Amendments of 1961 in these industries is $1.00 an hour. All other newly covered employees are subject
    to the same minima as those shown for employees previously covered.
    264
    Appendi x tab le J.—Minimum hourly wage rates in effect in American Samoa
    as of June 30, 1963
    Industry and classification
    Minimum
    hourly
    wage rate
    Fish canning and processing industry.. $0.90
    Shipping and transportation industry:
    Seafaring classification__________ .50
    Other activities classification____ .90
    Industry and classification
    Minimum
    hourly
    wage rate
    Petroleum marketing industry______
    Miscellaneous industries___________
    $0. 90
    .70
    Appen dix table K.—Number and value of unclassified contracts subject to the
    Public Contracts Act, by fiscal year, 1937-63
    Fiscal year Number of Value (in
    contracts 1 thousands)i 2
    Fiscal year Number of Value (in
    contracts 1 thousands)2
    Total, all years------ 1,355, 749 $285,164,139
    1937 (9 months)________ 3,223 177, 780
    1938.'.______ 1_________ 5,158 294, 953
    1939__________________ 6,396 528,393
    1940__________________ 9; 324 799, 733
    1941__________________ 24, 333 5,085, 694
    1942__________________ 59, 536 15, 867, 769
    1943... ______________ 101, 224 30,935, 632
    1944__________________ 98,167 30, 216, 662
    1945__________________ 135, 260 28,708, 335
    1946__________________ 35, 366 5, 224, 234
    1947__________________ 19; 303 1, 655, 595
    1948__________________ 21, 413 2, 360,105
    1949__________________ 27, 393 3, 606, 280
    1950__________________ 22,349 $2, 784,325
    1951__________________ 57,493 10, 422, 848
    1952__________________ 65,475 10; 978; 395
    1953_________________ 54, 210 10; 978, 817
    1954__________________ 44,081 7, 932; 035
    1955__________________ 33i 270 6; 383; 855
    1956__________________ 30, 916 6; 051, 504
    1957__________________ 53', 002 10; 67L 587
    1958__________________ 50, 519 9, 270, 474
    1959___ ___________ 73, 525 13, 452', 536
    1960_________________ 64,339 li; 787; 570
    1961__________________ 76; 254 16, 957; 694
    1962__________________ 88, 715 20, 919, 824
    1963__________________ 95,505 21,020, 501
    i Includes contracts for which no value was reported on the notice of award; some of these contracts may
    not be covered by the act.
    2 For statistical purposes, the amount included for indefinite-amount contracting indicating only an upper
    limit (e.g., “not to exceed $50,000”) is that limit; contracts for “more than $10,000” are coded $10,000; and no
    value is included for those contracts reported as “indefinite” or for which no value is shown.
    No te .—Amendments and supplemental awards to existing contracts are treated in the same manner as th e
    original contract.
    Appen dix table L.—Summary of minimum wage determinations applicable under
    the Public Contracts Act, June 30, 1963
    Industry and locality i
    Minimum
    hourly
    wage rate
    Effective
    date2 Tolerances2
    All industries and localities except those indicated
    below
    Battery:
    Lead-acid storage battery branch_____________
    Dry primary battery branch_________________
    Other battery branch_______________________
    Bituminous coal (including lignite):
    District:
    1—Eastern Pennsylvania_______________
    2—Western Pennsylvania_______________
    3—Northern West Virginia______________
    4—Ohio______________________________
    5—Michigan__________________________
    6—Panhandle_________________________
    7—Southern No. 1_____________________
    8—Southern No. 2_____________________
    9—West Kentucky_____________________
    10—Illinois____________________________
    11—Indiana____________________________
    12—Iowa______________________________
    13—Southeastern_______________________
    14—Arkansas-Oklahoma_________________
    15—Southwestern_______________________
    16—Northern Colorado__________________
    17—Southern Colorado__________________
    18—New Mexico________________________
    19—Wyoming____________ ____ _________
    20—Utah______________________________
    21—North Dakota-South Dakota_________
    22—Montana__________________________
    23—Washington________________________
    $1.15 Sept. 25,1961 (<).
    1.35
    1.15
    1.34
    2.745
    2. 745
    2. 745
    2.745
    1.15
    2. 745
    2.745
    2.745
    2. 59
    2.745
    2.78
    1.40
    2.515
    2.59
    2. 59
    2.796
    2.796
    2.796
    2.82
    2.82
    2.226
    2.846
    2.735
    May 27,1957
    Sept. 25,1961
    May 27,1957
    Oct. 20,1958
    ___ do______
    ____do______
    ___ do______
    Sept. 25,1961
    Oct. 20,1958
    ____do______
    ____do______
    ____do______
    ____do______
    ___ do______
    Nov. 25,1955
    Oct. 20,1958
    ____do______
    ____do______
    ___ do______
    ____do______
    ___ do______
    ____do______
    ____do______
    Nov. 25,1955
    Oct. 20,1958
    ____do..........
    (‘).
    Beginners $1.15 for not
    more than 3 months.
    Auxiliary workers
    $1.15, effective
    Sept. 25, 1961.
    See footnotes at end of table.
    265
    Appendi x tabl e L.—Summary of minimum wage determinations applicable under
    the Public Contracts Act, June 30, 1963—Continued
    Industry and locality 1
    Minimum
    hourly
    wage rate
    Effective
    date2 Tolerances3
    Chemical and related products:
    Industrial and refined basic chemical products
    branch:
    Maryland, Virginia, North Carolina, South $1.15 Sept. 25,1961 (<).
    Carolina, Tennessee, Arkansas, Mississippi,
    Alabama, Georgia, Florida, and the
    District of Columbia.
    Other States___________________________ 1.15 Jan. 23,1951 (0.
    Bone black, carbon black, and lamp black 1.40 ____do______ Beginners $1.35 for
    branch.
    Drugs and medicine____________________________
    Electric lamp_________________________________
    1.45 Feb. 21,1962
    Apr. 12,1963
    not more than 320
    hours.
    1.65
    Electron tubes and related products:
    Solid-state semiconductor devices branch___ 1.35 Jan. 7,1961
    Electron tubes branch______________________
    Electronic component parts_____________________
    1.42
    1.23 July 26,1961
    Electronic equipment__________________________ 1.52 May 4,1963
    Evaporated milk______________________________ 1.68 Jan. 15,1960 Probationary workers
    Flour and related products______________________ 1.30 Mar. 5,1959
    $1.63 for not more
    than 160 hours.
    Iron and steel:
    Connecticut, Delaware, District of Columbia, 1.23 Aug. 27,1949 Auxiliary workers
    Illinois (except the area in and about East St.
    Louis), Indiana, Kentucky, Maine, Maryland,
    Massachusetts, Michigan, New Hampshire,
    New Jersey, New York, Ohio, Pennsylvania,
    Rhode Island, Vermont, Wisconsin, West
    Virginia, Arizona, California, Colorado, Idaho,
    Montana, Nevada, New Mexico, Oregon,
    Utah, Washington, Wyoming.
    Illinois (East St. Louis area only), Iowa, Kansas, 1.19 ____do______
    $1.18 H; apprentices
    $1.18^ for first 6
    months.
    Auxiliary workers
    Minnesota, Missouri, Nebraska, North Dakota,
    South Dakota.
    Alabama, Arkansas, Florida, Georgia, Louisiana, 1.15 Sept. 25,1961
    $1.15.
    Mississippi, North Carolina, Oklahoma, South
    Carolina, Tennessee, Texas, Virginia.
    Machine tools:
    Blueprint machine operator or draftsman______ 1.65 May 23,1963
    Other employees___________________________
    Manifold business forms________________________
    1.80
    1.39 Sept. 16,1961
    Metal business furniture and storage equipment____ 1.43 June 10,1961
    Miscellaneous chemical products and preparations:
    Product group 1 (specialty cleaning, polishing, 1.42 Dec. 4,1961
    and sanitary preparations; surface active
    agents, finishing agents and sulfonated oils
    and assistants; and agricultural chemicals).
    Product group 2 (adhesives, glues, mucilage, 1.80 ____do______
    cements and sizes; gelatin, household tints,
    dyes, and bleaches; bluings; writing inks; essential
    oils; industrial compounds; automotive
    chemicals; and evaporated salt).
    Motors and generators:
    Fractional horsepower branch________________ 1.48 Oct. 24,1962
    Nonfractional horsepower branch ________ __ 1.73 ___ do____ _
    Office, computing, and accounting machines_______ 1.55 Mar. 12,1962
    Paint, varnish, and related products ____________ 1.50 July 24,1958 Probationary workers
    Paper and paperboard containers and packaging
    products:
    Nontextile bags branch--------------------------------- 1.30 Feb. 3,1961
    $1.40 for not more
    than 480 hours.
    In each branch, be-
    Corrugated and solid fiber boxes branch----------- 1.53 ____do______ gmners or proba-
    Sanitarv food containers branch . . 1.37 ___ do____ tionary workers may
    Wrapping products branch---------------------------- 1.20 ____do______ be employed at 5
    Paper and pulp:
    Primary paper and pulp branch--------------------- 1. 75 Sept. 16,1961
    cents an hour less
    than applicable
    minimum for not
    more than 240 hours.
    Rag paper and pulp branch.. 1.54 ___ do______
    Converted sanitary paper products branch-------- 1.55 ____do______
    Building paper and building board branch-------- 1.64 ___ do______
    Photographic and blueprinting equipment and 1.52 June 10,1961
    supplies.
    Pumps and compressors------------------------------------- 1.65 June 11,1963
    Scientific, industrial, and laboratory instruments:
    Electrical indicating instrument and service test 1.35 June 28,1963
    equipment branch.
    Other products branch---------------------------------- 1.50 ____do-------- -
    See footnotes at end of table.
    266
    Append ix table L.—Summary of minimum wage determinations applicable under
    the Public Contracts Act, June 30, 1963—Continued
    Industry and locality >
    Minimum
    hourly
    wage rate
    Effective
    date2 1 Tolerances »
    Small arms ammunition, explosives, and related
    products:
    Small arms ammunition branch---------------------- $1.15 Sept. 25,1961 (‘).
    Explosives branch---------------------------------------- 1.20 Apr. 20,1952 Beginners (probationary
    workers)
    $1.15 for not more
    than 320 hours.
    Blasting and detonating caps branch--------------- 1.15 Sept. 25,1961 w.
    Soap and related products---------------------------------- 1. 50 Dec. 8,1958
    Surgical instruments and apparatus---------------------- 1.25 Sept. 1,1958 Beginners $1.15 for not
    more than 320 hours.
    Tires and related products______________________ 1.77 June 3,1960 Beginners (probationary
    workers)
    $1.67 for not more
    than 160 hours.
    Woolen and worsted:
    Broad-woven goods, yarn, and thread branch
    and pressed felt.
    1.20 May 7,1954 (‘).
    All other products branch------------------------------ 1.15 Sept. 25,1961 w.
    1 Under existing policy, determinations are not enforced in Puerto Rico or the Virgin Islands.
    2 Effective date applies to contracts subject to the Public Contracts Act, bids for which are solicited or
    negotiations otherwise commenced on or after the date specified.
    3 Handicapped workers and apprentices in any industry may be employed at wages lower than the
    determination minimum pursuant to the certification standards and procedures prescribed in sections
    50-201.1102 and 50-201.1103, respectively, of the general regulations under the Public Contracts Act.
    < Learners may be employed at wages lower than the wage determination minimum if certificated in
    accordance with the learner regulations (29 CFR Part 522) issued under the Fair Labor Standards Act.
    Appendi x tab le M.—Number of minors found employed on farms in violation
    of the child labor provisions of the Fair Labor Standards Act, by age and present
    or last school grade attended, fiscal year 1963 1 1 2
    Age
    Present or last grade attended Below normal
    grade for age
    Total
    all
    grades 2
    Never
    attended
    school
    1 2 3 4 5 6 7 8 9 10 11 Number
    Percent
    of total
    in age
    interval
    Total, all years.. 6,864 107 505 674 814 936 1,004 943 804 557 382 123 15 3,522 51
    6 years_________ 149 44 91 14 0 0
    7 years_________ 294 21 164 94 15 21 7
    8 years..... .......... — 403 7 91 162 107 29 7 98 24
    9 years_________ 535 3 59 147 160 130 34 2 209 39
    10 years________ 775 5 58 115 189 192 174 40 2 367 47
    11 years________ 794 2 21 56 143 183 184 174 30 1 405 51
    12 years________ 995 3 11 38 93 181 244 213 170 39 3 570 57
    13 years................. 945 4 1 23 57 99 167 192 220 146 36 543 57
    14 years___ _____ 1,033 10 4 17 29 86 106 196 231 184 138 30 2 679 66
    15 years_________ 941 8 5 8 21 36 88 126 151 187 205 93 13 630 67
    1 Sixty-two illegally employed minors were omitted for the following reasons: (1) 23 for whom no school
    information was available; (2) 21 for whom age was not reported; (3) 13 because they were too young to be
    expected to have attended school; (4) 5 were in special ungraded classes.
    2 The figures between heavy lines in the table Indicate normal school attainment for that age child. Based
    on the usual standard of measurement, developed by the U.S. Office of Education, 6 to 7 is considered normal
    attendance in the 1st grade, 7 to 8 for the 2nd grade, etc., with attendance of 1 grade each year.
    267
    Appen dix tab le N.—Number of nonlocal minors found employed on farms in
    violation of the child labor provisions of the Fair Labor Standards Act, by age and
    present or last school grade attended, fiscal year 1963 1
    Age
    Present or last grade attended Below normal
    grade for age
    Total
    all
    grades 2
    Never
    attended
    school
    1 2 3 4 5 6 7 8 9 10 11 Number
    Percent
    of total
    in age
    interval
    Total, all years___ 2,271 67 221 293 332 359 364 296 192 97 40 9 1 1,656 73
    6 years___________ 45 27 14 4 0 0
    7 years....... ............. . 103 8 78 15 2 8 8
    8 years.................... 128 5 48 57 13 5 53 41
    9 years___________ 170 2 32 72 42 18 4 106 62
    10 years..................... 251 3 24 68 85 42 24 5 180 71
    11 years__________ 264 2 11 34 80 77 41 18 1 204 77
    12 years__________ 347 1 7 19 55 95 93 49 23 5 270 78
    13 years__________ 292 3 0 11 26 53 88 67 33 9 2 248 85
    14 years__________ 355 8 4 9 14 45 57 92 81 36 8 I 0 1 310 87
    15 years.................. 316 8 3 4 15 24 57 65 54 47 30 9 0 277 88
    1 Twenty-two illegally employed minors were omitted for the following reasons: (1) 13 for whom no school
    information was available; (2) 7 for whom age was not reported; (3) 2 because they were too young to be
    expected to have attended school.
    2 The figures between heavy lines in the table indicate normal school attainment for that age child. Based
    on the usual standard of measurement, developed by the U.S. Office of Education, 6 to 7 is considered normal
    attendance in the 1st grade, 7 to 8 for the 2d grade, etc., with attendance of 1 grade each year.
    Not e .—Nonlocal minors are those who do not return to their permanent home each day.
    Appen dix table O.—Number of minors found employed in violation of hazardous
    occupations orders issued under the Fair Labor Standards Act, fiscal year 1963
    Hazardous occupations orders violated
    Total employed in violation of one or more hazardous occupations orders 1___________
    Number of
    minors
    involved
    5,959
    Manufacturing or storage occupations involving explosives (order No. 1)_________________
    Motor-vehicle driver and helper (order No. 2)________________________________________
    Coal mine occupations (order No. 3)________________________________________________
    Logging and sawmilling occupations (order No. 4)______________________ ____ _________ _
    Power-driven woodworking machines occupations (order No. 5)_________________________
    Occupations involving exposure to radioactive substances and to ionizing radiations (order
    No. 6)________________________________________________________________________
    Power-driven hoisting apparatus occupations (order No. 7)_____________________________
    Power-driven metal-forming, punching, and shearing machines occupations (order No. 8)___
    Occupations in mining, other than coal (order No. 9)__________________________________
    Occupations involving slaughtering, meat packing or processing, or rendering (order No. 10)—
    Power-driven bakery machines occupations (order No. 11)_____________________________
    Power-driven paper-products machines (order No. 12)_________________________________
    Occupations in the manufacture of brick, tile and kindred products (order No. 13)_________
    Occupations involving the operation of circular saws, bandsaws and guillotine shears (order
    No. 14)________________________________________________________________________
    Occupations in wrecking, demolition and shipbreaking operations (order No. 15)__________
    Occupations in roofing operations (order No. 16)______________________________________
    Occupations in excavation operations (order No. 17)___________________________________
    19
    3,873
    64
    316
    262
    1,033
    175
    29
    191
    66
    152
    10
    234
    44
    59
    0
    1 Represents an unduplicated count of the number of minors employed in violation of one or
    more hazardous occupations orders.
    268
    APPENDIX II
    CHILD LABOR STANDARDS
    Fair Labor Standards Act
    The child labor provisions of the Fair Labor Standards Act set a 16-year
    minimum age for general employment, an 18-year minimum age for occupations
    declared hazardous by the Secretary of Labor, and a 14-year minimum
    age for employment outside school hours in a variety of nonmanufacturing
    and nonmining occupations under specified hours and conditions.
    A 16-year minimum applies to agricultural employment during the hours
    school is in session in the school district in which the minor is living while
    employed.
    These provisions apply to employees engaged in interstate commerce or
    in the production of goods for interstate commerce and to employment in
    certain large enterprises engaged in interstate commerce or in the production
    of goods for interstate commerce. They also apply to any producer, manufacturer,
    or dealer who ships or delivers for shipment in interstate commerce
    any goods produced in an establishment in or about which any
    children have been employed in violation of the act within 30 days prior
    to the removal of such goods.
    Walsh-Healey Public Contracts Act
    The Walsh-Healey Public Contracts Act sets a 16-year minimum age for
    boys and an 18-year minimum age for girls who are employed in work performed
    on certain contracts in excess of $10,000 for the manufacture or
    supply of materials for the Federal Government.
    Investigation Findings
    With completion of the first full fiscal year of enforcement of the provisions
    of the Fair Labor Standards Act as amended in 1961, it is possible to
    assess the impact of these amendments in relation to the number of minors
    disclosed by investigation to be employed contrary to the child labor provisions
    of the act. As a result of the extension of coverage provided by the
    1961 amendments, an increase in the number of available investigator hours,
    a more intensive program of scheduling investigations, and other factors,
    there were considerable increases in fiscal year 1963 in the number of minors
    found illegally employed in nonagricultural establishments. Regional
    increases over the previous year ranged from 7 to 145 percent, with the
    additions resulting in many of the regions from investigations in retail and
    service establishments.
    711—471—64------- 18 269
    In all, 17,174 minors were found working contrary to the child labor
    provisions of the act, an increase of 6,834 over 1961. The 1963 total included
    10,348 minors in nonagricultural establishments, 67 percent more than in
    the previous year, and 6,92.6 children under 16 years of age employed in
    agriculture during school hours.
    More than 1,700 minors were found illegally employed in retail and service
    establishments, or about 16 percent of those illegally employed in nonagricultural
    establishments. In addition, 70 minors were found employed
    contrary to the child labor provisions of the Walsh-Healey Public Contracts
    Act.
    Findings in Nonagricultural Establishments
    Investigations disclosed violations in nonagricultural establishments in
    each of the 50 States, the District of Columbia, and in Puerto Rico. (See
    appendix table C.) The 10,348 minors found illegally employed included
    135 minors 9 years old or younger and i,o6x minors whose ages ranged from
    10 to 13. Approximately 4,400 children, or 41 percent, were minors 14
    and 15 years of age employed in prohibited occupations. In addition, 4,764
    minors aged 16 and 17, or 46 percent, were found illegally employed in
    occupations declared hazardous by the Secretary of Labor.
    Occupations of Minors Under 16
    Where the Fair Labor Standards Act is applicable, the employment of
    children under 14 years of age is prohibited. Despite this prohibition,
    children under 14 were found illegally employed. Boys aged 8 and 13
    and an 11-year-old girl were collating books in a printing plant. A 6-yearold
    boy was operating a scrap paper baler and placing scrap paper on a
    conveyor for a junk company. A produce warehouse employed boys aged
    9, 10, 12., and 15 as warehouse laborers and two 13-year-olds as helpers on
    trucks. Twenty-eight children from 5 to 15 years of age were found shelling
    peas and beans on the 7 p.m. to 7 a.m. night shift for a produce company.
    A beauty aids manufacturer employed minors aged 11, 13, and 14 to assemble
    hair curlers. An 11-year-old warehouse worker stacked stale bakery goods
    on a sales rack, swept the floor, and stacked cardboard boxes for shipment
    for a wholesale bakery distributor.
    In addition to the many young children found employed in prohibited
    occupations, minors continued to be found working excessively long hours
    in other nonagricultural occupations.
    Twenty-two boys and girls ranging in age from 13 to 15 were employed
    to assemble and package rubber and metal washers. They worked over 8
    hours per day and over 40 hours per week, and often until 10:30 p.m. A
    13-year-oJd boy was found to have worked a split shift between 9 a.m.
    and 9 p.m. for 7 hours a day. A 14-year-old boy had worked 13 hours a
    day, or a total of 78 hours a week, while another worked 10 hours a day
    and as late as 10:30 p.m. A 15-year-old boy worked as many as ix hours
    a day, and as many as 55 hours in a week.
    270
    Long hours of work often interfere with school work and adversely
    affect the health of young workers. Moreover, the employment of boys
    and girls who are too young to be aware of potential danger increases the
    hazards of employment. These are the basic reasons underlying the regulations
    issued by the Secretary of Labor which specify the number of hours
    of work per day and per week and other conditions under which 14- and
    15-year-old minors may be employed.
    Child Labor Findings in Agriculture
    Children may work in the fields regardless of their age, in any occupation,
    and for any number of hours, provided the school in the school district
    where they are living while so employed is not in session. Under
    the Fair Labor Standards Act, a 16-year minimum age is applicable to
    employment in agriculture only during the hours the school is in session
    in the district where the minor lives and works. This provision does not
    apply to children working for their parents.
    During fiscal year 1963, 6,9x6 minors under 16 years of age were found
    employed during school hours in violation of the Fair Labor Standards
    Act on x,x77 farms in 33 States and in Puerto Rico. (See appendix table
    D.) Of these, 4,633 were local children and 1,2.93 were migrants. Over
    10 percent of the minors employed illegally in agriculture were 9 years of
    age or younger. More than half the minors found were 10 to 13 years of
    age, while 1,987, or 19 percent, were 14 and 15 years of age. Over 5,000
    of the minors illegally employed during school hours worked in the cotton
    fields. Other crops such as vegetables, field crops (other than cotton),
    and fruits accounted for most of the remaining child labor violations.
    Preschool age children were also working on farms. Their employment,
    however, is not a violation of the act, since, of course, there are no school
    hours for children below school age.
    The educational level of children found illegally employed on farms is
    graphically portrayed by information obtained on the last grade attended
    at school. Of the 6,864 children who furnished information on the last
    grade attended, 51 percent were in grades below the normal for their ages.
    As might be expected, educational achievement in relation to age becomes
    lower as the children increase in age. Thus, at 14 years of age, 66 percent
    of the children employed in violation were enrolled in grades below the
    normal for their ages, and at age 15 the percentage was 67. (See appendix
    table M.)
    Of the migrants found illegally employed, 67 children had never attended
    school, and 73 percent were in grades below the normal. At 14 years of
    age the percentage increased to 87 and, at age 15, 88 percent were behind
    in scholastic attainment. These high percentages are even more serious
    when one considers that the standard of measurement indicates that ages
    6 and 7 are normal for the first grade, 7 and 8 for the second grade, and
    so on. (See appendix table N.)
    271
    Low educational achievements of migrants may be related to deficiencies
    in school attendance laws, crop vacations, inadequate school facilities,
    and language barriers. School laws in some States are not applicable to
    migrant children, and in other States the laws permit school officials to
    dismiss classes while local crops are being harvested. Since migratory
    families follow the crops, they often move from one place to another where
    school has been dismissed for the harvest. In such cases, the migrant
    children have little or no opportunity for schooling. Even where school
    is in session and the migrant children are required to attend and do so,
    they are at a disadvantage. Quite often the school is not equipped to
    handle an influx of students, and school officials hesitate to enlarge their
    facilities because the migrants’ stay in the community may be of short
    duration. Also, where migrant children attend school there are problems
    of frequent adjustment to a new school environment as they move from
    place to place. Many migrant children have a limited command of the
    English language and often do not attend school because bilingual teachers
    are not available.
    That employment in agriculture can be dangerous is pointed up by the
    following accidents:
    A 14-year-old minor was electrocuted while loading cotton on a truck
    with a mechanical shaker.
    A 14-year-old minor was killed helping to harvest corn when he fell
    off a wagon and was run over by a truck.
    A 15-year-old minor was killed when the tractor he was operating
    overturned and crushed him.
    Minors Working in Hazardous Occupations
    Almost 6,000 minors under 18 years of age were found employed in
    violation of one or more of the 17 hazardous occupations orders issued
    by the Secretary of Labor. About 65 percent, or 3,873, of these minors
    were illegally employed as motor vehicle drivers or helpers in violation
    of Hazardous Occupations Order No. z. Hazardous Occupations Order
    No. 7, applying to the operation of elevators, cranes, derricks, and other
    power-driven hoisting devices, accounted for 1,033, or 17 percent. There
    were 316 minors found employed in logging and sawmilling operations,
    which are prohibited by Hazardous Occupations Order No. 4. The operation
    of power-driven woodworking machines, covered by Hazardous
    Occupations Order No. 5, resulted in z6z violations, while 2.34 minors
    were found operating circular saws, bandsaws, and guillotine shears, contrary
    to Hazardous Occupations Order No. 14. (See appendix table O.)
    In those occupations or industries found and declared hazardous by the
    Secretary of Labor, an 18-year minimum age applies. These orders are
    issued only after careful research and consultation with experts and other
    interested groups and individuals in order to determine the dangers involved,
    the frequency of accidents, and their severity.
    272
    Working in hazardous occupations has involved minors in accidents
    which resulted in serious injury or death. A 17-year-old boy working in
    a mine was killed while shoveling coal, and his young companion was
    injured when a mine car of coal was dumped into a truck mine tipple.
    In a drilling operation, a 16-year-old boy was injured when he was
    struck by the breakout gongs on the drilling rig with which he was
    working. Serious injuries were sustained to his side, back, and head.
    While loading a log onto the logging truck which he drove, a 15-year-old
    minor was injured when the log fell, breaking the boy’s foot.
    A 17-year-old freight elevator operator suffered a skull fracture when he
    fell into an open elevator shaft while backing a four-wheel hand truck onto
    the elevator.
    A 16-year-old boy was killed while driving a pickup truck. The truck
    lost a right wheel on a turn, throwing the boy out into the path of the truck
    which ran over him. In another accident, a minor under 18 employed as a
    truck driver was killed when his truck overturned.
    A 13-year-old, employed as a woodcutter, was injured when the chain saw
    he was operating slipped and cut him on the right side of his neck and chest,
    requiring an emergency operation and extensive stitching.
    A 16-year-old boy, employed as a debarker operator by a lumber company,
    lost two toes and part of his right foot when his foot was caught in a chain
    and sprocket of the feed conveyor of the debarker machine.
    Employment and Age Certificates
    Employers may protect themselves from unintentional violation of the
    child labor provisions of the Fair Labor Standards Act if they have on file
    an employment or age certificate showing the young worker to be the minimum
    age for the occupation in which he is employed.
    State employment and age certificates are issued in 45 States, the District
    of Columbia, and Puerto Rico. During the 1961 calendar year approximately
    one million employment and age certificates were issued by the
    States. This was nearly a xo percent increase over the number issued in
    1961. These State employment and age certificates are accepted as proof
    of age under the Federal act.
    In five States, the State law makes no provision for the issuance of employment
    and age certificates. In four of these States—Idaho, Mississippi,
    South Carolina, and Texas—the Divisions issue Federal certificates of age.
    In Alaska, available evidence of age has been given the same force and effect
    as Federal certificates of age. During the fiscal year, the Divisions issued
    14,3x0 Federal certificates of age, a slight decrease over the number issued
    in 196X.
    Participation in Youth Programs
    The Divisions continued their representation on the Interdepartmental
    Committee on Children and Youth, including active participation on two
    273
    subcommittees—Transition from School to Work, and Families and
    Children of Agricultural Migrants. Program emphasis for the year included
    an assessment of some of the rapid changes in national life and the
    impact of these changes upon youth. A special project in response to the
    request of a congressional committee was the updating of the reference
    directory, “Programs of the Federal Government Affecting Children and
    Youth.”
    Two work projects were undertaken and completed by the Subcommittee
    on Transition from School to Work. One was the updating of an earlier
    publication, “Helping Rural Youth Choose Careers,” which will be used at
    the National Conference on Rural Youth being held in Oklahoma in the fall.
    The second was the preparation of a new visual-type pamphlet showing all
    Federal agency youth programs, and where individuals or committees can
    reach local, State, or regional personnel and the location of the national
    headquarters of each agency. The document—‘ ‘ Aids to Local Planning for
    Occupational Choice, Preparation and Youth Employment”—tells what
    services are available under the various Federal programs for youth, and
    where people can get additional information.
    Information Activities
    Popular informational material as well as several technical documents
    were reviewed and revised, and news releases were issued to the press announcing
    official actions.
    Regional and field office representatives spoke before many professional,
    business and civic groups, and farm organizations on the child labor requirements
    of the Fair Labor Standards Act. They also worked in close
    cooperation with local schools as well as with State, county, and city
    officials, in response to requests for information on the child labor
    provisions.
    Much educational work was accomplished through contacts with Farm
    Placement Bureau officials who gave migrant workers various materials on
    the application of the child labor provisions to agricultural employment.
    Child Labor Bulletin No. 101 and the pamphlet ‘‘ What Crew Leaders Should
    Know,” in Spanish as well as English, were distributed in the two major
    migrant centers, Florida and Texas.
    Press releases and radio-TV spot announcements were prepared as part of
    information programs for the fall, winter, and spring seasons to keep
    potential employers and young workers apprised of the child labor provisions
    which would affect them. The fall information program also
    emphasized the importance of returning to school.
    274

    OFFICE OF WELFARE AND PENSION PLANS1
    Fiscal year 1963 was the first full year of administration of the amended
    Welfare and Pension Plans Disclosure Act, which strengthened the original
    disclosure law and which gave to the Secretary investigative and enforcement
    powers and the authority to issue regulations. Fidelity bonding
    is required of persons in a position to cause a loss through fraud or dishonesty
    to funds or other property of employee benefit plans subject to
    the act.
    Embezzlement, false reporting, and kickbacks in connection with plans
    subject to the act were made criminal offenses under title 18 of the U.S.
    Code. In July 1961, the Secretary of Labor and the Attorney General
    announced an agreement setting out their respective responsibilities in
    investigating and prosecuting these offenses and other violations of the
    amended act. During the year, the Office of Welfare and Pension Plans
    referred 2.6 matters involving possible criminal violations to the Department
    of Justice.
    The amended act established an Advisory Council on Employee Welfare
    and Pension Benefit Plans, which met six times during the year. The first
    few meetings were devoted mainly to the proposed bonding regulations and
    to an analysis of the comments received by the Department in reaction to
    the publication of the proposed regulations in the Federal Register. In
    later meetings, the council considered proposals for the revision of reporting
    forms and miscellaneous matters.
    Most of the Department’s functions under the law during the fiscal year
    were performed by the Office of Welfare and Pension Plans, which had been
    established by the Secretary following the 1961 amendments.
    The most urgent problem at the beginning of the fiscal year was the
    issuance of regulations which would guide plan administrators in applying
    the bonding provisions. On September 1, after bonding problems had been
    fully explored with the Advisory Council, the Department promulgated a
    proposed basic regulation. Interested organizations and persons were
    invited to comment. About 50 formal comments were filed and discussed
    with the Advisory Council. Final regulations were issued November 30,
    196X5 effective January 1, 1963 (2.9 Code of Federal Regulations Part 1306).
    Also promulgated were regulations relating to procedures for obtaining
    exemptions from the bonding requirements of the act (19 CFR Part 1307)
    and an interpretative bulletin on prohibitions against bonding by parties
    of interest” in the plan (19 CFR Part 1309).
    * On August 21, 1963, functions of the Office were transferred to the Office of Labor-Management and
    Welfare-Pension Reports in the newly established Labor-Management Services Administration.
    277
    The act requires administrators, officers, and employees who handle
    welfare and pension funds to be bonded for io percent of the funds handled
    up to a maximum bond amount of $500,000, but it also provides that the
    Secretary of Labor may prescribe amounts in excess of $500,000. A public
    hearing was conducted to obtain information and opinions from interested
    parties as to the need for implementing this provision and possible methods
    of doing so. Thereafter, it was determined that there was no need then
    for adoption of any regulations of general application prescribing bonds in
    excess of $500,000 for any single plan.
    With regard to the reporting requirements, a regulation was issued providing
    a i-page form to be used by plans that have fewer than 100 participants
    to notify the Department that they do not need to file an annual
    financial report (19 CFR Part 1304). A variation from the publication
    requirements of the act was promulgated with respect to certain plans
    utilizing Blue Cross-Blue Shield organizations (19 CFR Part 132.0).
    Through replies to individual inquiries, the dissemination of printed
    materials, and a direct-contact educational campaign consisting of a series
    of meetings held in major cities throughout the United States, OWPP
    attempted to help plan administrators and insurance companies to comply
    fully with the law. By the end of June, more than 6,000 persons had attended
    discussion clinics in 17 cities. The insurance industry and employer
    groups were the most heavily represented, with substantial participation
    by labor union officials, corporate trust officers, attorneys, accountants,
    and pension plan specialists. The program concentrated on the coverage
    of the act and on the reporting and bonding requirements. Time was
    allotted at each clinic for the consideration of individual problems. During
    the year, 5,000 copies of the act were printed in Spanish. An initial
    distribution was made in Puerto Rico.
    As in the past, OWPP continued to receive, process, and make available
    for public examination the plan descriptions, amendments, and annual
    reports filed in accordance with the law.
    During fiscal 1963, OWPP received about 11,000 new plan descriptions,
    13,000 amendments, and 81,000 annual reports. By the end of the year, it
    had received a grand total of 185,000 plan descriptions, 111,000 amendments,
    and 498,000 annual reports.
    Visitors to the Department’s Public Document Room numbered 1,340.
    They examined a total of 34,430 reports (two-thirds of which were annual
    reports), an increase of 5,730 over 1961.
    The number of reports duplicated for sale also rose. Cash receipts for
    the year were $7,593, as compared with a total of $11,686 for the 4 preceding
    years. Over 30,000 pages of reports were reproduced. Statistics relating
    to the reports-processing, inquiries, and disclosure activities of the OWPP
    are presented in the following table 1.
    Under the Secretary’s new enforcement powers, OWPP opened cases on
    489 plans involving a total of 631 possible violations, most of which con-
    278
    cerned failure to file annual reports. Of the 304 alleged violations disposed
    of, voluntary compliance was obtained in 19X instances. In the other nx
    instances, the plan was not covered or had been terminated, it was disclosed,
    or no violation was found. In handling these cases, OWPP utilized the
    field resources of the Bureau of Labor-Management Reports as needed.
    In two instances, the Secretary of Labor filed civil complaints in the U.S.
    courts asking that plan administrators be required to' file overdue annual
    reports. These cases involved employers in Maine and Pennsylvania.
    Many costly investigations and possible civil actions have been avoided
    by means of the extensive correspondence devoted to requesting the submission
    of overdue annual reports. More than 17,000 such letters were
    sent out in 1963, effecting compliance in 60 percent of the cases.
    In February, a set of tabulations entitled “Welfare and Pension Plans —
    Statistics—1960“ was released, covering 1959 financial data for 118,660
    plans and i960 data for 1x0,510 plans. *nTihnee tables in the study give
    details on the value and type of assets, the amount of contributions by
    employers and by employees, the amount of benefits paid, and distribution
    of plans by method of providing benefits, by industry divisions, and by
    number of employees covered. Similar compilations will be prepared for
    1961 and 196X data. Some of the i960 data are presented in tables x, 3, and
    4 appended hereto.
    279
    Table 1.—Status report, June 30, 1963
    Activity
    Jan. 1, 1959,
    to
    June 30,1963
    Fiscal
    year
    1963
    Preparation of replies to substantive inquiries:
    Total number received ____________________ ___ ___ -______ 47, 490 9,970
    Mail ____________________________________________________ 29,600
    16,750
    1,140
    5,740
    4,080
    160
    Phone __________ _________________ - - -____
    Visitor ______________________ _____ - -- -- -- __ - --
    Total number answered _______________ _ _ _ _ _ ___ _ - 47,370 10,890
    Mail ______________________ _______________________ 25, 530
    16, 750
    1,140
    3,950
    5,370
    4,080
    160
    1,280
    Phone ______________ ___ -- - -- - -__ __ - - -
    Visitor ________________ - --- -- __ --
    Other disposition_ ___________ _ __ - __ __ ___ --
    Public Disclosure Room:
    Number of visitors _ _ _ _ _ __ _ _ __ 4,370 1,340
    Number of reports examined:
    Total _ ______________ _____ __ _ __ -------- - 99,630 34,430
    Plan descriptions ______________ _ _ _ ___ __ - -- 37,390
    62,240
    10,870
    Annual reports ______________ _ _ _ _ ____ _ _ _ 23,570
    Furnishing copies of filings on reimbursable cost basis:
    Number of pages __________________ -_ ____ 98,750
    9,100
    30,180
    Number of filings utilized _________________ _ __ _ 2,860
    Receiving filings:
    Plan descriptions:
    Number received _ ________ _______________ _______ 174,460
    174,240
    173,490
    88,830
    110,670
    110,670
    108,430
    119,610
    119,530
    117,730
    111,490
    111, 400
    66,280
    70,020
    69,890
    15,260
    4, 520
    11,150
    11,310
    13,490
    23,010
    600
    600
    0
    2,970
    2,900
    39,570
    11,540
    11,560
    66,280
    62,630
    63,700
    15,260
    4,520
    Number identified and available for disclosure. _ _ __ _ _
    Number examined and tabulated_____________ __ _ _ _
    Amended plan description filings____ ____________ -_____ __ --
    Annual reports:
    1959—First round:
    Number received ____ _______________ ____ _________
    Number identified and available for disclosure__ _____
    Number examined and tabulated __________ __ ____ ______
    I960—Second round:
    Number received __ _ _ _ ___ ___ __ __ _ _
    Number identified and available for disclosure _ _ _ _ _ __
    Number examined and tabulated __________ ___________ -___
    1961—Third round:
    Number received _ ____________ _ ___ _ -
    Number identified and available for disclosure- __ _ ____
    Number examined and tabulated _________ _____ ________
    1962—Fourth round:
    Number received _ ________ ___ __ __ ______
    Number identified and available for disclosure ___ ______ ____
    Number examined and tabulated___________________ -_ _____
    1963—Fifth round:
    Number received_____________ __ _ _ _________
    Correspondence (other than substantive):
    Total number of letters ___________ . - - ____ - - - 165,720 43,040
    Re overdue plan description _______ ______ _ ______ ____ ____ 2,100
    20,390
    60,440
    1,080
    81,710
    0
    390
    17,460
    180
    25,010
    Re deficiency in plan description____ ___ ___
    Re overdue annual report- _______ _ _____ ______ ___
    Re deficiency in annual report _________ - -______ ___
    Other _ ___ ________ - ____- ______ ___ _ -
    Overall mailhandling:
    Total pieces handled__ ______ _ __ - ________ - ________ ____ 2,054,490 485,320
    Number received _____ ________ _______ ____ ___ ___________ 771,210
    1,283,280
    161,790
    Number mailed ___________ _ _____ -_ - _____________ 323,530
    280
    [Money amounts, millions of dollars]
    Table 2.—Selected financial data for 120,510 welfare and pension benefit
    plans, 1960 1
    Item
    Amounts Percentage distribution
    Total—
    all plans
    Welfare
    plans
    Pension
    plans 2
    Total—
    all plans
    Welfare
    plans
    Pension
    plans
    Number of plans_____________________ 120,510 95,980 24,530
    Contributions—Total_________________ $11,134.7 $5,342.7 $5,792.0 100.0 100.0 100.0
    Source of contributions:
    By employers_________ ____ 8,628.7 3, 801.5 4,827.2 77.5 71.2 83.3
    By employees___ __ ____ 2,505. 9 1. 541.2 964.7 22.5 28.8 16.7
    Type of plan contributed to:
    Insured plan_____ _ _____ _ 5,133. 8 4,097.7 1,036.1 46.1 76.7 17.9
    Self-insured plan_____ ___ _____ 3,850.5 405.0 3,445. 5 34.6 7.6 59.5
    Insured and self-insured _______ 1,118.9 244.5 874.4 10.0 4.6 15.1
    Unfunded plan______ ___ ____ 533.8 449.5 84.3 4.8 8.4 1.5
    Combination of above_ ________ 497.8 146.1 351.7 4.5 2.7 6.1
    Industrial activity of contributor:
    Manufacturing______ __ 6,155.1 3,152.6 3,002.5 55.3 59.0 51.8
    Mining. _____________ ______ 323.2 80.8 242.4 2.9 1.5 4.2
    Construction____________ _____ 363.2 233.3 129.9 3.3 4.4 2.2
    Transportation_______ _____ 868.1 440.5 427.6 7.8 8.2 7.4
    Communication and utilities____ 870.9 322.7 548.2 7.8 6.0 9.5
    Wholesale and retail trade______ 837.1 449.0 388.1 7.5 8.4 6.7
    Finance, insurance, real estate___ 872.7 282.1 590.6 7.8 5.3 10.2
    Services________________ ______ 481.1 240.4 240.7 4.3 4.5 4.2
    Other and unclassified_________ 363.3 141.3 222.0 3.3 2.6 3.8
    Benefits paid—Total__________________ 7,006.3 4,572. 5 2,433.8 100.0 100.0 100.0
    Insured plans__________ ________ 3,779.3 3,434.7 344.6 53.9 75.1 14.2
    Self-insured plans_______________ __ 1,779.4 279.2 1,500.2 25.4 6.1 61.6
    Insured and self-insured__ _ ___- 584.2 250.9 333.3 8.3 5.5 13.7
    Unfunded plans___________ ____ 533.8 449.5 84.3 7.6 9.8 3.5
    Combination of above_____________ 329.6 158.2 171.4 4.7 3.5 7.0
    Value of assets—Total-------------------------- 33,368. 9 2,243.1 31,125. 8 100.0 100.0 100.0
    Cash____________________________ 903.3 283.0 620.3 2.7 12.6 2.0
    Investment assets_________________ 31,498.1 1,842.0 29,656.1 94.4 82.1 95.3
    Government obligations________ 3,909. 9 960.3 2,949. 6 11.7 42.8 9.5
    Nongovernment bonds 14i 388. 9 237.6 14,151.3 43.1 10.6 45.5
    Preferred stock______ ___ ___ _ ' 703.2 16.7 686.5 2.1 0.7 2.2
    Common stock________ ____ 10, 638.7 547.2 10,091.5 31.9 24.4 32.4
    Other investment assets. ______ 1,857.2 80.2 1, 777.0 5.6 3.6 5.7
    All other assets___________________ ' 967. 6 118.1 849.5 2.9 5.3 2.7
    i Data are included for plans having fiscal, policy, or contract years ending between Jan. 1 and Dec. 31,
    I960.
    2 Includes a small number of plans which are primarily pension benefit plans but which also provide
    some welfare type benefits.
    281
    Table 3.—Distribution of welfare and pension benefit plans during I9601 by value
    of assets held by plans
    Value of assets held by plans
    Number of plans Percentage distribution
    Totalall
    plans
    Welfare
    benefit
    plans
    Pension
    benefit
    plans
    Totalall
    plans
    Welfare
    benefit
    plans
    Pension
    benefit
    plans2
    Totftl—all plans _ __________ 120,510 95, 980 24, 530 100.0 100.0 100.0
    No assets held by plans:
    Unfunded plans (benefits paid from
    general assets of employer or employc-
    c organization)___________ 6,560
    91,430
    12,840
    3,140
    1,460
    920
    610
    910
    500
    300
    230
    200
    160
    110
    110
    500
    170
    100
    50
    30
    50
    30
    10
    10
    100
    5,190
    84,900
    4,540
    570
    220
    130
    90
    110
    60
    40
    20
    20
    10
    10
    10
    50
    10
    (3)
    (»)
    (3)
    0
    (’)
    0
    0
    10
    1,370
    6,530
    8,300
    2, 570
    1,240
    790
    530
    800
    440
    260
    210
    180
    150
    100
    100
    450
    160
    100
    50
    30
    50
    30
    10
    10
    90
    5.4
    75.9
    10.7
    2.6
    1.2
    .8
    .5
    .8
    .4
    .3
    .2
    .2
    .1
    .1
    .1
    .4
    .1
    .1
    0)
    0)
    0)
    0)
    0)
    0) .1
    5.4
    88.5
    4.7
    .6
    .2
    .1
    .1
    .1
    .1
    0)
    0)
    0)
    0)
    0)
    0) .1
    0)
    0)
    0)
    0)
    .0
    0)
    .0
    .0
    0)
    5.6
    26.6
    33.9
    10.5
    5.1
    3.2
    2.2
    3.3
    1.8
    1.1
    .8
    .7
    .6
    .4
    .4
    1.8
    .6
    .4
    .2
    .1
    .2
    .1
    .1
    0) .4
    Insured plans (benefits guaranteed)—.
    Assets held by plans in trust or special fund:
    Undor $200 000 __________________
    $?.0n 00O-$399,999___________ _____-
    $100000 $599 999 . _____ _________
    $ro o ’o o o -$799 999 ____ ________ __
    $«Qo’f>OO-$999’999. . __________ __
    $1 ”o6o 000-$1 499,999.______________
    $1’.500 000 $1 999.999____ _______ ___
    $9'000'600 $2’499^999 _____ ____ _____
    $9’s 6o ’6o 6-$2 '999^999____________ ___
    $a’o66’66o-$3 499^999____ _ ________
    $3'5o6’6o6-$3;999;999_. . __________
    $4’060'606 $4 .599;999 ______ ______
    $4’fi66'oOO-$4J)99,999_____________ ..
    $.5’066’606—$9999^999 ____ __________
    $10 000 000-,$14,999.999____ _________
    ifil .5’666’066—$19’999’999___ __________
    $26’o66’656-$24;999;999___ ....___
    $95’666’666-$29;999^999... . _______
    $30’660 odd—$34’999'999_____________
    $35'o0fl0(l 0-839^999’999______________
    $40000000- $44^999/999______________
    $45’666’666-$49;999;999______________
    $50 000 000 and over
    1 Data included are for plans having fiscal, policy, or contract years ending between Jan. 1 and Dec. 31,
    Includes a small number of plans which are primarily pension benefit plans, but which also provide some
    welfare type benefits.
    « Fewer than five plans.
    < Less than 0.1 of 1 percent.
    Tab le 4.—Distribution of welfare and pension benefit plans during 1960 1 by
    number of employees covered
    Number of employees
    covered
    Number of plans Percentage distribution
    Totalall
    plans
    Welfare
    benefit
    plans
    Pension
    benefit
    plans 2
    Totalall
    plans
    Welfare
    benefit
    plans
    Pension
    benefit
    plans 2
    Total—all plans---------- 120,510 95,980 24,530 100.0 100.0 100.0
    10,240 7,880 2,360 rr 8.2 9.6
    3~(F39 - __________ 13,160 10,660 2,500 10.9 11.1 10.2
    40-49 __________ 9. 590 7,720 1,870 8.0 8.0 7.6
    50-59___________ - - - 7,560 6,020 1,540 6.3 6.3 6.3
    60-69 _ - - - 6,100 4,900 1,200 5.1 5.1 4.9
    70-79 _____ 5,040 4,090 950 4.2 4.3 3.9
    80-89 _ - -_________ 4,130 3,350 780 3.4 3.5 3.2
    90-99 _ __ ____ 3,470 2,810 660 2.8 2.9 2.7
    100-199_______ ____ 20,000 16,090 3,910 16.6 16.8 15.9
    200-299 __ - — 9,050 7,230 1,820 7.5 7.5 7.4
    300-399 -- ____ 5,310 4,220 1,090 4.4 4.4 4.4
    400-499 _ ____ __ -- 3,420 2,730 690 2.8 2.8 2.8
    500-599__ _ _ _ - 2,820 2,050 770 2.3 2.1 3.1
    600-699-_ - - - ____ 1,890 1,490 400 1.6 1.6 1.6
    700-799 __________ - 1,520 1,180 340 1.3 1.2 1.4
    800-899. _______ 1,250 990 260 1.0 1.0 1.1
    900-999 _______ ___ 1,020 810 210 0.8 0.8 0.9
    1,000-1,999. ____________ 5,250 4,170 1,080 4.4 4.3 4.4
    2’000-2^99. _ . . 2,050 1,620 430 1.7 1.7 1.7
    3’000-3,999 _____ 1,240 1,010 230 1.0 1.1 1.0
    4'000-4’999 ___ . 860 650 210 0.7 0.7 0.8
    3,760 3,000 760 3.1 3.1 3.1
    Unknown_________________ 1,800 1,330 470 1.5 1.4 1.9
    i Data included are for plans having fiscal, policy, or contract years ending between Jan. 1 and Dec. 31,
    2 Includes a small number of plans which are primarily pension benefit plans but which also provide some
    welfare type benefits.
    282

    WOMEN’S BUREAU
    A growing national interest in the status o£ women and their place in
    our American society as homemakers, workers outside the home, and
    volunteers in community activities has been reflected in the work of the
    Women’s Bureau and in the demands for its services during fiscal 1963.
    Much of the Bureau’s activities centered around efforts to establish the
    principle of equal pay for women in jobs where men and women do the same
    or comparable work. The Bureau has long been interested in this problem,
    considered basic to the economic advancement of women. Efforts of numerous
    organizations and individuals to secure legislative action culminated
    in adoption of the Equal Pay Act of 1963, which was signed by the President
    on June 10. Those concerned in promoting the legislation relied
    heavily upon the Women’s Bureau for technical advice and information.
    Extensive data were made available by the Bureau for use in testimony
    before congressional committees.
    The work of the President’s Commission on the Status of Women (PCSW)
    added new dimensions to the Bureau’s programs. This Commission, established
    December 14, 1961, conducted nationwide investigation of problems
    confronting women of today. The Bureau assisted by providing extensive
    advisory service and by developing technical materials relating to women’s
    civil and political status, protective labor legislation needs, and other
    areas of concern to women workers.
    Additional regional offices made it possible for the Bureau to extend
    its program to a greater number and variety of local groups and individuals,
    and to broaden the scope of its research activities. With regional offices
    in Chicago, Boston, San Francisco, and Atlanta, individual advisory services
    of four regional directors were made available. In addition, the
    Bureau’s field service was utilized in a series of regional conferences which
    considered the problems of working women of all ages and at all levels of
    occupational competence. For these meetings the Bureau was cosponsor
    with State labor departments, universities, labor unions, management
    groups, and women’s organizations.
    The Bureau has had particular concern for the low-wage disadvantaged
    groups which include private household workers, laundry workers, and
    migrants. Study of employment conditions and training needs of these
    workers is a basic Bureau activity; a long-range goal is the development
    of programs to improve their wages and working conditions.
    Technical advisory service dealing with minimum wage, equal pay,
    hours of work, and other State laws governing working conditions of
    women was provided to administrators of State agencies, unions, women’s
    711-471—64------- 19 285
    and civic groups, and others interested in State labor legislation affecting
    women.
    Analyses of proposed legislation also were made available, as were data
    on women’s rights under State family and property laws. This information,
    published in individual booklets for each of the 50 States, together with a
    U.S. summary, comprises the Bureau’s Bulletin 157 series. Many of the
    State reports were revised and a revision of the summary is in progress.
    Brief statistical reports were issued concerning women workers in several
    States. These summarize facts about women’s employment, income,
    education, personal characteristics, and occupational and industrial status,
    as revealed by the i960 decennial census.
    A new study, “Negro Women in i960,’’ was based on data collected in
    the decennial censuses. It shows improvement in the employment status
    of Negro and other nonwhite women, as indicated by the greater variety
    and skill of their jobs, the rise in their educational preparation, higher
    income levels, and wider access to employment opportunities.
    Special emphasis was placed on the need for educated women and a study,
    “Job Horizons for College Women in the 1960’s,’’ was prepared for publication.
    It describes briefly the principal professions—in emerging as well
    as traditional fields—-open to both young college women and mature
    graduates. Both publications will be available early in fiscal 1964.
    As part of the U.S. Government’s program of international cooperation,
    the Bureau planned programs of study and observation for women leaders,
    specialists, and trainees from Africa, Asia, Latin America, and Middle
    Eastern countries as well as for officials of government agencies similar to
    the Women’s Bureau in Argentina, Japan, and Canada.
    The Women’s Bureau played a major role in the U.S. Department of
    Labor exhibit at the U.S. Trade Fair in Mexico. Theme of the exhibit
    was “Employment of Women in the United States.”
    The Director of the Bureau contributed a paper, “Women in the Labor
    Force,” to the United Nations Conference on the Application of Science
    and Technology for the Benefit of the Less Developed Areas, held in Geneva,
    Switzerland, in February 1963. The Bureau also contributed to a U.N.
    report coordinating information from member nations on law and practice
    in the dissolution of marriage, annulment of marriage, and judicial separation.
    The report was made available to the 17th session of the U.N.
    Commission on the Status of Women.
    LEGISLATION
    The Women’s Bureau provided technical services and materials to Federal
    and State governmental bodies, international agencies, women’s and civic
    organizations, unions, and other groups and individuals concerned with
    laws and standards governing women’s status. As a major new activity,
    the Bureau was assigned responsibility for providing technical assistance and
    materials to committees of the President’s Commission on the Status of
    Women.
    286
    Equal Pay
    The enactment of Public Law 88-38, Federal Equal Pay Act of 1963,
    marked a new milestone in the progress of women toward equality in economic
    status.
    The Bureau Director testified at hearings on both Senate and House equal
    pay and related bills. She supplied extensive supporting materials, which
    included results of a questionnaire on the use of administrative hearings in
    enforcement of State equal pay laws.
    A series of conferences was held with interested persons in the Department,
    women’s organizations represented on the National Committee
    for Equal Pay, Members of Congress, and other groups and individuals.
    Following enactment of the law, the Bureau prepared a leaflet, “What
    the Equal Pay Principle Means to Women,” to acquaint members of women’s
    organizations and others with the provisions of the new law and the
    history of activities leading to its adoption.
    Equal pay bills were introduced during the year in iz States that did not
    have such legislation. Adoption of such laws in Vermont and Missouri
    brought to 14 the number of States that now have such legislation. Enactment
    of the Missouri law followed a long campaign conducted by the
    State branch of the American Association of University Women and cooperating
    organizations. The Women’s Bureau furnished continuous technical
    advisory assistance.
    Members of women’s organizations and others working for adoption of
    such bills in additional States also relied heavily on the Bureau for technical
    advice and materials. These included State labor departments in North
    Dakota and Oregon, the American Association of University Women in
    Maryland, and the State Federation of Business and Professional Women’s
    Clubs in the District of Columbia.
    The Bureau revised several of its equal pay publications, including the
    “Equal-Pay Primer” and “Equal-Pay Facts.”
    Minimum Wage
    Continuing its efforts to advance the economic position of women in
    low-wage industries, the Bureau—in collaboration with the Bureau of
    Labor Standards and the Solicitor’s Office—revised the suggested language
    for two draft State minimum wage bills, one providing for a fixed wage
    only and the other providing for wage boards in addition to a fixed wage.
    A committee of State minimum wage administrators met in Washington
    and cooperated in the preparation of the revised language.
    During the year, four States amended their minimum wage laws to increase
    their statutory minimum wage rates: Idaho from 75 cents to $1 an
    hour; New Mexico from 75 cents to 80 cents an hour (service workers from
    65 cents to 70 cents); North Carolina from 75 cents to 85 cents an hour;
    Nevada for females 18 years of age and over from $1 an hour to $1.1 z%
    287
    until September 3, 1964, when it will increase to $1.15 an hour, and for
    females under 18 from 87% cents to $1 an hour.
    Amendments to other provisions of minimum wage laws were adopted
    in Rhode Island, Connecticut, Hawaii, and Minnesota. In addition, a total
    of zo wage orders establishing increased minimum wage rates were issued
    in Puerto Rico and 8 States: Kentucky, New Jersey, North Dakota, Ohio,
    Oregon, Pennsylvania, Utah, and Washington. A newly issued order in
    Pennsylvania for candy stand attendants in motion picture theater lobbies
    sets a minimum rate for an occupation exempt from the statutory rate.
    The Bureau assisted States by furnishing technical advisory services and
    materials in connection with proposed minimum wage legislation or the
    revision of wage orders. Among them were: Minnesota on learner provisions
    in wage orders for use in court cases; Washington on recent progress
    made in other States; Wisconsin on wage order provisions and enactments of
    special interest for women workers; Michigan on pending minimum wage
    legislation; Ohio wage board member on wage orders for the drycleaning
    industry; New Jersey Consumers League on a technical aspect of a minimum
    wage bill in relation to coverage of workers receiving old-age and survivors
    insurance.
    On request of the Administrator of the District of Columbia law, extensive
    technical services, including participation in a drafting conference
    called by the House District Committee, were furnished on proposals to
    amend the District of Columbia minimum wage law by establishing a
    statutory rate and bringing men under coverage. Testimony was presented
    at public hearings before the District of Columbia Citizens Advisory
    Council, and a Bureau staff member served as a member of the Health
    and Welfare Council to study and report to the District’s Commissioners
    on the proposed bill.
    To assist States with laws that provide for convening of tripartite wage
    boards to recommend minimum wage rates, the Bureau, in cooperation
    wTith the Bureau of Labor Statistics and a committee of State minimum
    wage administrators, initiated a new project to develop basic standards
    for use by States on a cost-of-living budget for a self-supporting woman
    worker.
    A complete revision of the Bureau’s Bulletin Z67, Part II, ‘ ‘ State Minimum-
    Wage Laws and Orders,” combining the original report and four supplements,
    was prepared. The report of the November 1961 conference of
    State minimum wage administrators was made available for general
    distribution. Leaflet 4, ‘‘State Minimum-Wage Laws,” was revised.
    Hours and Working Conditions
    Requests for Bureau services reflected increased public interest in hours
    of work and working conditions of women. The preponderance in the
    labor force of married women and women in the extreme upper and lower
    age brackets has directed increased attention to the need for insuring the
    adequacy of basic standards and protective legislation for these groups.
    288
    Also, the growing employment of women workers and the increasing recognition
    of women’s important contribution to the national economy have given
    rise to demands for greater flexibility in laws governing their hours and
    conditions of employment. These aspects were reflected in bills dealing
    with special labor laws for women introduced in the various State legislatures;
    for example, 41 bills pertaining to women’s hours of employment
    were introduced in 18 States in 1963.
    One proposal of particular interest on which the Bureau furnished
    technical advisory services was a proposed amendment to the California
    maximum hour law to allow women to work beyond 8 hours a day and 48
    hours a week in defense production. The Bureau furnished information on
    recommended standards and legal provisions for relaxation in other States
    to various unions and to the legislative sponsors of bills. Another subject
    on which recommendations were frequently sought by employers and unions
    related to safe practices on jobs requiring lifting or carrying of heavy
    weights. Advice on standards for maternity leave and the question of
    maternity benefits and reemployment rights also was frequently requested.
    Digests of State legislation on women’s hours and working conditions
    were prepared by the staff of the Women’s Bureau and distributed to
    governmental and voluntary groups. Three States adopted amendments
    revising the coverage of their maximum hour laws for women: Colorado,
    Maine, and Connecticut. Colorado exempts females employed in clerical
    office positions in establishments covered by the 8-hour law; Maine extends
    coverage of the 9-hour-day, 54-hour-week (9-54-hour) law to females
    employed in nursing homes; and Connecticut brings under coverage of the
    9-48-hour law women and minors employed in amusement and recreation
    industries as well as in bowling alleys, shoeshining establishments, and
    billiard parlors or poolrooms. These were previously covered by a 58-
    hour-week law, now repealed.
    Four States adopted amendments affecting basic standards: Idaho, which
    prohibited employment of women in covered establishments more than 9
    hours a day, now prohibits their employment for more than 8 hours a day
    and 48 hours a week unless 1% times the regular rate is paid for hours
    worked over 8 a day and over 48 a week; Rhode Island, which set a maximum
    of 9 or 9% hours a day and 48 a week, amended its law to permit
    employment under specified conditions as long as 10 hours a day and 51
    hours a week, provided not less than 1% times the regular rate is paid for
    hours in excess of 48 a week; New York recodified the labor law provisions
    relating to the working hours of women and minors, making various
    changes; Massachusetts extended its emergency relaxation law for women
    and minors under specified conditions for a i-year period until July 1, 1965.
    Civil and Political Status
    Two background papers were provided for the President’s Commission
    on the Status of Women, Committee on Civil and Political Rights: “Differences
    in State Family and Property Laws Affecting Men and Women” and
    289
    711-471—^64------- 20
    “Problems in Connection with the Domicile of a Married Woman.”
    In addition, brief studies on specific areas of the civil or political status of
    women were prepared for use in consideration of specific problem areas:
    “Eligibility of Women for Jury Service” (two studies); “Estates in Curtesy
    and Dower Provided by State Law, August i, 1962."; “Allowance of Alimony
    on Divorce”; “State Laws Re Natural Guardianship and Support
    of Minor Children”; “State Laws Affecting Selected Political and Property
    Rights of Women as of January 1, 1938, January 1, 1953, and January 1,
    1963.”
    Technical assistance was given to the Committee in drafting a questionnaire
    concerning 11 problem areas in family and property law. It
    was designed to obtain specific information from practicing lawyers concerning
    their experience in the application of State law in their fields.
    This questionnaire was sent to local representatives of the National Association
    of Women Lawyers and to local representatives of the Family Section
    of the American Bar Association.
    Work continued on Women’s Bureau basic research in civil and political
    status of women, Bulletin 157 series. Separate State reports were revised
    and brought up to date for the District of Columbia, West Virginia, New
    Mexico, Massachusetts, Connecticut, and Georgia. Draft revisions of
    California, Ohio, Michigan, and Texas reports were begun. Summary
    materials on marriage laws, divorce laws, guardianship laws, and minors’
    contracts have been prepared for use in revision of the U.S. summary.
    Other materials which the Bureau made available included special
    summaries of family and property laws of Iowa, Michigan, Ohio, and
    Wyoming, prepared for Girls’ State meetings; a special report on North
    Carolina family and property law, prepared for North Carolina State
    College; historical background of the legislative proposals for income tax
    deductions for child care of employed persons, prepared for the Congressional
    Quarterly; information concerning experience under State equal
    rights provisions, prepared for women’s groups interested in the so-called
    equal rights amendment to the Constitution.
    Numerous congressional proposals affecting women were analyzed and
    comments prepared tor the Solicitor’s Office, including draft legislation
    for the National Service Corps Act and H.R. 4158, a bill to codify laws on
    organization of the U.S. Government.
    During the past State legislative sessions, many significant laws were
    enacted affecting the civil and political status of women. Idaho enacted
    a statute removing the provision allowing a woman to decline to serve as
    a juror on the basis of sex alone, thus bringing to zi the number of States
    in which women serve as jurors on the same basis as men. Texas enacted
    two laws which greatly increased the power of married women to control
    and manage their separate property, one removing the previous legal requirement
    that a husband must join the wife in any conveyance of the
    separate land of the wife. North Carolina amended its law, subject to
    popular referendum, to delete the requirement that any conveyance of the
    290
    separate real property of the wife must have the written consent of her
    husband. Pennsylvania increased from $750 to $1,000 the amount of
    wages, salary, and accrued pension due a deceased employee that may be
    paid to the surviving spouse or other designated relative, and at the same time
    authorized that any accrued vacation benefits be included in such sum.
    Wisconsin’s law, which permits a surviving spouse or certain relatives of
    a deceased State or local government employee to receive the full amount of
    earnings due from employment, was amended to include vacation allowances.
    A number of enactments in other States also carried forward the trend
    to equalize the application of provisions of family law for persons of
    both sexes, among them Maryland, Oregon, and Arkansas.
    The interest of the States in improving their domestic relations laws
    was evidenced by the number of States authorizing or conducting studies.
    New York, which had created a joint legislative committee on matrimonial
    and family laws in 1956, authorized a continuance of the committee
    for another year. In Montana, the Governor’s Commission on Domestic
    Relations, appointed to study the problems of teenage marriage and divorce
    and to develop a model family code to promote the stability of marriage,
    submitted its report in November 196Z. In California, the Interim
    Committee on Judiciary submitted its final report on the adoption law and
    the interlocutory divorce period. Ohio requested the Judicial Council to
    investigate residence requirements in divorce, and to make recommendations
    and submit draft legislation.
    Eighty-five joint resolutions proposing so-called equal rights amendments
    to the Constitution were introduced into Congress. On April z,
    1963, the President approved Public Law 88-4 which amends the Internal
    Revenue Code to provide that the deduction for child care expenses should
    be available to a wife who has been deserted by and cannot locate her
    husband, on the same basis as such deduction is available to a widowed
    or divorced woman.
    Women’s opportunity for Federal employment on the basis of merit and
    training was increased by the Justice Department’s reinterpretation of an
    1870 statute which served as a legal basis for permitting Federal appointing
    officers to specify jobs for male only or female only. On July Z3, 196Z,
    a Presidential directive provided that appointments and promotions in
    the Federal career service should be made without regard to sex, except
    under unusual circumstances where such action has been found justified
    by the Civil Service Commission.
    INTERNATIONAL PROGRAM
    United Nations
    The Bureau Director contributed a paper, “Women in the Labor
    Force,” to the U.N. Conference on the Application of Science and Technology
    for the Benefit of the Less Developed Areas, held in Geneva,
    Switzerland, February 1963.
    291
    International Labor Organization
    Various ILO reports such as “Women Workers in a Changing World
    and “Conditions of Employment in the Textile Industry” were reviewed
    and comments prepared. The Bureau also participated in the preparation
    of Department position papers for ILO meetings dealing with aspects of
    employment of particular interest to women workers.
    U.N. Commission
    The Chief of the Women’s Bureau Division of Legislation and Standards
    served as technical adviser at the 17th session of the United Nations
    Commission on the Status of Women. Two outstanding accomplishments
    of the session were a proposal for a new series of U.N. regional seminars
    on the advancement of women in the developing countries, and the completion
    of a draft “Marriage Recommendation” incorporating the principles
    approved by the General Assembly and designed to supplement the
    Marriage Convention adopted in November 1961. It provides for regular
    reports on law and practice regarding marriage from all member states,
    regardless of whether they become parties to the convention. Adoption
    of the recommendation by the next session of the General Assembly will
    encourage recognition of stable family life as the foundation for national
    progress.
    The regional seminars on the advancement of women in developing
    countries will be started 1 years hence, after completion of the current
    series on the status of women in family law. They will promote the
    objectives of the U.N. Development Decade, in which increased economic
    production is a major aim, and give special attention to women’s educational
    needs, vocational and professional training, and employment
    opportunities. The Commission’s choice of seminar topic reflected the
    increasing importance of women in the work force of all countries, and
    particularly in nations seeking to lift production levels.
    During the year, the U.S. reply to the U.N. questionnaire on “Legal
    Conditions and Effects of Dissolution of Marriage, and Judicial Separation”
    was prepared by the Bureau. The report on this subject prepared
    by the U.N. Secretary General on the basis of replies of all member governments
    will be considered by the U.N. Commission on the Status of Women
    at its 1964 session.
    Foreign Women Leaders
    As part of its continuing program of assistance to women of foreign
    countries, Bureau staff conferred with 51 women leaders; specialists, and
    trainees from 2.6 countries to discuss the economic and social status of
    U.S. women and their organization programs and community service
    projects. Aid was given to the majority of these women in planning
    overall programs for their special interests and needs. Of significance
    was the increasing number of women leaders from Africa, 15 from 7 coun-
    292
    tries: Cameroon, Gabon, Kenya, Malagasy Republic, South Africa,
    Tanganyika, and Togo.
    Information
    The “Role of Women in the U.S. Work Force’’ was the theme of the
    Department of Labor’s exhibit at the U.S. Trade Fair in Mexico, and the
    Women’s Bureau staff cooperated in planning the exhibit. A booklet on
    employment of women in the United States was prepared for translation
    into Spanish and was distributed at the fair. The Chief of the Bureau’s
    International Division attended as a member of the Labor Mission to the
    trade fair. She arranged a tour and meeting for leaders of women’s organizations
    and trade union women, visited factories and several women’s
    organizations, made speeches about women’s employment in the United
    States, and conferred with the Chief of the Women’s and Minors’ Division,
    Mexican Department of Labor, and with other women executives in the
    Mexican Government.
    The following manuscripts were prepared for an International Reports
    series for general distribution: “Women in High-Level Elective and
    Appointive Positions in National Governments’’; “Policies of National
    Governments on Employing Women’’; “Equal Pay in Member Nations of
    the International Labor Organization’’; “Protective Labor Legislation for
    Women in 91 Countries”; “Maternity Protection and Benefits in 92. Countries”;
    “Notes on Women’s Employment in the United States and Nine
    European Countries.”
    Discussions were held with 3 Brazilian trade union women in a training
    course at the In ter-American Institute for Free Labor Development; 19
    social workers from Cyprus, Panama, Turkey, Pakistan, Argentina, Greece,
    Malaya, Laos, Jordan, Taiwan, and Iran; 4 students of social work from
    the University of Hawaii; a Girl Scout leader from Korea; and 5 women
    Members of Parliament from Finland.
    The role of women in the economy of the United States was interpreted
    in 38 sessions to 185 foreign participants during the Labor Department
    orientation program.
    Explanations concerning establishment of the Women’s Bureau, its
    continuing work, publications, and staffing pattern were sent to a leading
    woman official in the Korean Ministry of Health and Social Affairs, and
    to women leaders in the Netherlands and Nyasaland.
    Selected publications were sent to the Inter-American Regional Labor
    Organization in Mexico for use in training programs for Latin American
    trade union women, and equal pay material and other publications were
    sent to a number of other countries.
    Services to U.S. Groups
    Women’s employment, standards, and working conditions, and work of
    the Women’s Bureau were discussed with 13 Latin American women
    293
    leaders who participated in a “Citizens in a Free Society” seminar sponsored
    by the Overseas Education Fund of the League of Women Voters.
    Discussions also were held with xo Latin American women in newspaper
    work, radio, and television, who were visiting under the sponsorship of
    the Committee of Correspondence, Inc., of New York, N.Y.; and with 9
    African women students attending Howard University summer classes under
    the auspices of the Women’s Africa Committee of the African-American
    Institute.
    A Women’s Bureau representative served as a resource specialist on
    international programs at a leadership training conference of the National
    Council of Negro Women, and spoke on “Women’s Changing Status
    in the World—Challenge to the YWCA” at the annual meeting of the
    Pittsburgh area YWCA.
    Pertinent information about U.S. women and the addresses of women
    leaders in other countries were given to a number of U.S. citizens to assist
    them in their overseas assignments.
    Cooperation With Other Agencies
    The Women’s Bureau staff participated in planning two Agency for
    International Development workshops for women community and rural
    leaders in Latin American and Asian countries.
    For United States Information Agency overseas officers, material for a
    new packet directed to women was reviewed and commented upon.
    For the Bureau of Educational and Cultural Affairs, Department of State,
    comments were prepared on a proposed research project on the role of
    women in developing countries.
    For the Bureau of Labor Standards, U.S. Department of Labor, the draft
    for a handbook entitled “Role of a Labor Department in Developing Countries”
    was reviewed, and comments relating to women workers prepared
    and correlated for the final manuscript.
    For the Bureau of International Labor Affairs, a plan for evaluating the
    effectiveness of Labor Department trainees’ and leaders’ programs was
    prepared.
    FIELD SERVICE
    Fiscal year 1963 saw the establishment of Women’s Bureau regional
    offices in Atlanta, Boston, and San Francisco. A Chicago office had been
    set up in fiscal 196X. The Bureau’s four field offices are located in the same
    regional offices as other bureaus of the Department of Labor.
    The experiment of decentralizing Women’s Bureau technical assistance
    by placing regional directors in the field has proved a highly effective
    method of operation. The pace of contact and cooperation with women’s
    organizations, employer groups, unions, and other government and public
    agencies has increased markedly. Easy access to the services of the Bureau
    representative has made this possible despite the fact that each Women’s
    Bureau regional director is responsible for at least xx States. Technical
    294
    assistance to community groups and State departments of labor has been
    helpful in the increased activity directed toward enactment of minimum
    wage laws or the improvement of existing minimum wage laws, in action
    on equal pay legislation, and in the development of day-care services for
    working mothers.
    The field staff has encouraged the establishment of State commissions on
    the status of women. It has cooperated with women’s organizations,
    > given information and advisory assistance, and, at the close of the fiscal
    year, reported that Governors’ commissions have been established in nine
    States: Alabama, Delaware, Illinois, Indiana, Iowa, Michigan, Minnesota,
    North Carolina, and Washington. Preliminary contacts have been made
    ® in zo other States.
    One major vehicle for working with significant segments of the communities
    and for coordinating efforts on local, State, and regional levels is
    the development of conferences on problems of working women. Such
    conferences involve assistance from both field staff and Washington Bureau
    personnel, and may include only one or as many as three States within a
    region where concerns are similar.
    Six major conferences have been held at Howard University, University
    of Utah, Michigan State, Iowa State University, University of Minnesota,
    and Boston University, respectively. An average of 300 persons participated
    in each of these conferences. Plans are in the making for four more in the
    early fall in Ohio, Washington State, Indiana, and Kansas.
    In addition to assisting with conferences which are cosponsored by the
    Women’s Bureau, regional directors are in great demand as participants and
    speakers for other conferences.
    Beside their major involvement with the objectives of the Women’s
    Bureau, regional directors cooperated with other Department of Labor
    field representatives on youth programs, on Manpower Development and
    Training Act aspects of training for women, and with Bureau of Employ-
    » ment Security Community Round Tables. They served also on regional
    committees for two special assignments relating to suggestions for meeting
    problems of unemployment in the regions and ways and means for improving
    relationships between State and Federal governments.
    t
    WOMEN IN THE WORK FORCE
    Women’s rising participation in and contribution to the economic life
    of our country were documented in the “196Z Handbook on Women
    Workers,” the eighth biennial edition of this handbook. This comprehensive
    summary of basic statistical, economic, and legislative information
    about women workers provides newly available data and brings previous
    editions up to date. It serves as a sourcebook for employers, labor unions,
    government officials, educators and counselors, women’s organizations, and
    other individuals and organizations interested in facts about women’s
    employment.
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    Number Employed
    During fiscal 1963, the number of women workers (employed or seeking
    work) rose to a new high of 2.4,798,000—more than one-half million above
    fiscal 1962. Further analysis of the employment data which follow
    reveals that the number of women who were employed increased 2.4 percent
    while those who were unemployed decreased 2 percent. As a result,
    women’s unemployment rate dropped from 6.6 percent in fiscal 1962 to
    6.3 percent in fiscal 1963.
    Women in the population and labor force
    Monthly average for
    year ending June 30
    Change from 1962 to
    1963
    1963 1962 Number Percent
    Women 14 years of age or over____________________ - 67,386, 000 66,260, 000 +1,126,000 +1.7
    In the labor force_____________________ __ __ -__ - 24. 798,000 24,274,000 +524,000 +2.2
    Employed ________________________________ ___ 23,226, 000 22,671,000 +555,000 +2.4
    Unemployed__________________________________ 1, 571,000 1,603, 000 -32,000 -2.0
    Not in lt*ahbeor force_____ ______ _________________ 42, 588,000 41, 986, 000 +602,000 +1.4
    Equal Pay Studies
    Continuing concern about pay practices resulting in inequitable treatment
    of women led to further study of pertinent wage and salary information
    prior to passage of the Equal Pay Act of 1963. Women’s Bureau
    representatives visiting public employment offices in 9 cities in 1963
    found 91 examples of job orders with wage differentials. These were job
    vacancy reports on which employers had listed a single job title but a
    higher hiring rate for men than for women. In about one-third of the
    job orders, the wage differential amounted to 10 percent or less of the
    men’s rate; in over one-half of the orders, 11 to 25 percent; and in the
    remaining orders, 26 percent or more.
    Two surveys made by private employment groups show how employers
    view their own pay practices. In one survey, employers were asked
    if they had a double standard pay scale for men and women office workers.
    One-third answered “yes” and two-thirds answered “no.” The
    second survey, covering a sample of employers who were asked whether
    they always pay women the same salary as men in the same job, reported
    that 83 percent responded “always” and 17 percent “sometimes.”
    Because broad generalizations about the comparative labor costs of men
    and women workers are sometimes used to justify lower wage rates for
    women, an analysis was made of impartially collected statistics and a
    summary of the findings was released under the title “ What About Women’s
    Absenteeism and Labor Turnover?” This statement reported, for example,
    that a Public Health Service study of worktime lost throughout the
    economy because of illness or injury shows an average of 5.6 days lost
    by women and of 5.5 days lost by men during the survey year (July 1959-
    June i960). Also included was a Bureau of Labor Statistics study of job
    296
    mobility in 1961 indicating that men tend to move from one job to another
    more often than women. According to that study, n percent of men workers
    but only 8.6 percent of women workers had more than one job in 1961.
    Even more important, the Women’s Bureau statement emphasized the
    need to compare absenteeism and labor turnover experiences of those holding
    similar jobs or with similar job characteristics. Statistics obtained
    by the Department of Labor showed that among both men and women
    workers the lowest quit rates occurred among professional, managerial,
    and skilled workers, and the highest quit rates among sales, service, and
    unskilled workers. The fact that large numbers of women are in these
    latter groups and relatively few in the skilled groups accounts to a large
    extent for the unfavorable generalizations about the labor turnover rates
    of women workers.
    Similarly, the age of workers and their length of service are also significant
    factors in separations. Only small differences were found to exist
    in the separation rates of men and women 45 years of age and over. Among
    younger workers analyzed in terms of occupational groupings, there was
    considerable variation—with the younger women in some groups having
    lower quit rates on the average than their male counterparts. In each
    age group, the highest separation rates occurred among the men and
    women workers with less than one year of service with the employing
    company. With large numbers of women employed on a part-time or
    intermittent basis, there is often a concentration of women in the group
    having high turnover rates and thus a tendency for the situation to appear
    unfavorable for all women.
    Employment Opportunities
    The growing interest in part-time employment among married women
    in many countries, as well as in the United States, stimulated further
    study of this subject. According to the latest data available, the number
    of women engaged in part-time work in this country approximated
    6.5 million in 1962. and is expected to rise to 9 million by 1975- Numerically,
    the largest groups of women with part-time jobs were private-household
    workers, other service workers, clerical workers, farm laborers, and
    saleswomen. About 85 percent of the women who worked less than 35
    hours a week in 1961 customarily were part-time workers—primarily
    because of home or school responsibilities, lack of interest in full-time
    work, or illness.
    As part of the Bureau’s publications program which provides occupational
    information to women and girls, major work was completed during the
    year on a review of job opportunities for college women. Scheduled for
    release early in calendar year 1964, “Job Horizons for College Women in
    the 1960’s’’ expands and updates a similar bulletin published in 1956.
    It indicates the broad range of job opportunities open both to young college
    women and mature graduates seeking to return to the labor force. The
    297
    approximately 35 jobs which are briefly described include not only traditional
    fields of work but also expanding and emerging professions.
    As additional background information, the bulletin provides some
    general remarks relating principally to the place of paid employment in
    the lives of the majority of college women; some practical considerations
    concerning graduate study and salaries; statistical data describing college
    women’s employment; and further sources for more detailed information
    about occupational opportunities.
    A brief article describing the effects of. automation on the employment
    of women telephone workers was prepared for the Occupational Outlook
    Quarterly. This summary is based on a more detailed study of telephone
    operators and other women telephone workers employed by the major
    telephone system from 1945 to i960, as revealed by employment statistics
    available from the Federal Communications Commission. Publication of
    the summary article will follow the fall 1963 release of a bulletin entitled
    “Women Telephone Workers and Changing Technology.’’
    Analysis of I960 Census Data
    The wealth of statistical data collected in the i960 census concerning
    the social and economic characteristics of the population provides much
    pertinent information about women’s employment for further summary
    and analysis. The first in a series of analytical bulletins issued by the
    Women’s Bureau last year was focused on a comparison of women’s employment
    in 1950 and i960 with emphasis on the geographical differences
    among women workers.
    The second analytical bulletin based on i960 census data is expected to
    be released early in calendar year 1964 under the title “Negro Women
    Workers in i960.” Comparisons of i960 employment data with those
    available for 1940 and 1950 indicate a pattern of steadily rising gains for
    Negro and other nonwhite women—in terms of kinds of jobs, industries
    of employment, levels of income, amount of education, and accessibility
    to employment opportunities.
    The major occupational shifts of Negro women have been away from jobs
    of private-household workers, farmers, and operatives and into those of
    clerical, professional, technical, sales, and miscellaneous service workers.
    At the same time, significantly larger numbers of Negro women have been
    employed in banking, retail trade, medical and other health services,
    public administration, and certain branches of manufacturing that are
    expanding.
    These changes have been related to the continuing migration of Negroes
    away from rural areas and into industrial and metropolitan areas and to the
    noticeable flow out of the South into other regions of the country. With
    these moves has come a wider range of employment opportunities for
    Negro women. Another influential factor has been the steady rise in edu-
    298
    cational preparation—with many more nonwhite women graduating from
    grammar school or high school than previously.
    The favorable response to the State data contained in the published
    bulletin prompted the Women’s Bureau to plan another series of reports
    to summarize information available from the i960 census concerning women
    workers in each of the 50 States. During fiscal 1963, reports were released
    for 15 States and work was continuing for others. Each report contains
    brief textual statement and 10 tabulations describing such basic characteristics
    of women workers in the State as their number, age, marital status,
    occupations, industries, earnings, income, and education. Since detailed
    State data are available only from the decennial censuses, the reports have
    been very helpful, particularly for use in regional offices and at regional
    conferences.
    Special Activities
    In recent years there has been mounting interest in “ continuing education
    for women,” particularly for mature women whose concentration on home
    and family matters has resulted in the deterioration of former skills. This
    interest was reflected in a rising number of inquiries for background information
    which could be used in developing special educational programs for
    women at colleges and universities around the country. The importance
    of giving special attention to this need was emphasized in numerous college
    programs where the Women’s Bureau Director was principal speaker. In
    addition, staff members participated in several conferences, including the
    Conference on Continuing Education of Women sponsored by the American
    Council on Education and the Carnegie Corporation; a workshop on
    research in women’s education sponsored by the American Association of
    University Women Educational Foundation, Mills College, and the Carnegie
    Corporation; a conference on special degree programs conducted by
    the Center for the Study of Liberal Education for Adults; a conference on
    the role of women in science sponsored by Marymount College under the
    auspices of the Office of Emergency Planning in the Executive Office of the
    President; and a panel on continuing alumni education in the age of automation
    held at Catholic University.
    In response to requests for up-to-date information about women workers
    in specific fields or circumstances, staff members presented a paper on women
    and girls in the labor market at the National Conference on Social Welfare;
    gave the keynote speech at an Earnings Opportunities Forum for mature
    women; described nursing employment problems to two groups of graduate
    nurses; discussed the status and activities of American women with the
    foreign participants in the Philadelphia International Program for Youth
    Leaders and Social Workers; and provided an overall view of the status of
    women workers to several local groups of educators and women’s organization
    members.
    299
    PRESIDENT’S COMMISSION ON WOMEN
    Established by the President on December 14, 1961, under Executive
    Order 10980, the Commission on the Status of Women was to complete its
    assignment and present its report to the President in October 1963.
    In setting up the Commission, the President said: “Women have basic
    rights which should be respected and fostered as part of our Nation’s
    commitment to human dignity, freedom, and democracy. ... It is my
    hope that the Commission’s report will indicate what remains to be done
    to demolish prejudices and outmoded customs which act as barriers to the
    full partnership of women in our democracy.”
    The wide-range objectives of the Commission are listed in the order: full
    realization of women’s basic rights; family security and strengthened home
    life; effective use of the skills of all persons in promoting the Nation’s
    economy, security, and national defense; elimination of discriminations in
    employment; equitable treatment of women under the law; and services
    which will enable women to continue their role as wives and mothers
    while making a maximum contribution to the world outside the home.
    To assist in carrying out the President’s mandate, the Commission
    created seven committees concerned with the following areas: Civil and
    political rights, education, Federal employment, home and community,
    private employment, protective labor legislation, and social insurance and
    taxes. Members of the Commission served as chairmen of these committees,
    which included some 70 additional persons to advise in the subject areas of
    the particular committees on which they served. Government agencies
    concerned with the subjects under study gave technical assistance and
    provided background material and information essential to committee
    deliberations.
    Throughout the year, as the several committees developed their recommendations,
    these were considered by the Commission. In determining
    which committee recommendations or parts of recommendations it would
    adopt and incorporate in its report, the Commission decided that the
    comprehensive study and far-reaching recommendations should be made
    available, in separate committee reports, to groups, organizations, and agencies
    interested in specific areas. Therefore, reports of the seven committees
    will be issued following presentation of the Commission report to
    the President.
    The Commission held the last of its eight meetings in May 1963, and
    concurred in the final draft of its report.
    The Commission was deprived of the leadership of its Chairman, Mrs.
    Eleanor Roosevelt, by her death in November 1961. No successor was
    appointed and Dr. Richard A. Lester, Vice Chairman of the Commission,
    and Assistant Secretary of Labor Esther Peterson, Executive Vice Chairman,
    continued to guide the Commission along the lines chartered by
    Mrs. Roosevelt.
    300
    Extensive and valuable cooperation of government agencies, voluntary
    organizations, and private citizens throughout the country has indicated
    the keen interest with which the work of the Commission has been followed.
    Public discussion of the aims of the Commission has had considerable
    influence in arousing interest, which resulted in organization of several
    State commissions.
    Although the areas of the Commission’s studies extended beyond the
    scope of program activities of the Women’s Bureau, the experience and
    knowledge of the Bureau staff were utilized extensively by the Commission,
    especially in the areas of civil and political rights and protective labor
    legislation. The Bureau supplied background information and gave
    continuing technical assistance in the studies of committees as well as to
    the Commission itself.
    The Bureau’s Division of Legislation and Standards supplied summaries
    and analyses of laws and regulations covering provisions for overtime
    work under State hours laws applicable to manufacturing; maximum daily
    and weekly hours standards for women, by occupation and industry;
    provisions of nightwork laws; applicability of maximum hours laws to
    women bank employees, and recent experience in State maximum hours
    law enforcement.
    A questionnaire was distributed to women workers in selected cities in
    six States, requesting their firsthand experience and recommendations
    with respect to hours of work, minimum wage, and lifting of heavy weights.
    Replies to the questionnaire were collated, and the findings included in a
    summary report for committee consideration and action.
    Two background papers were provided for the Committee on Civil and
    Political Rights: ‘ ‘ Differences in State Family and Property Laws Affecting
    Men and Women” and “Problems in Connection with the Domicile of a
    Married Woman.” In addition, brief studies on specific areas of the civil
    or political status of women were prepared for use in consideration of
    » specific problem areas: “Eligibility of Women for Jury Service” (two studies);
    “Estates in Curtesy and Dower Provided by State Law, August i,
    1961”; “Allowance of Alimony on Divorce”; “State Laws Re Natural
    Guardianship and Support of Minor Children”; “State Laws Affecting
    Selected Political and Property Rights of Women as of January 1, 1938,
    January 1, 1953 and January 1, 1963.”
    Technical assistance was given to the committee in drafting a questionnaire
    concerning ix problem areas in family and property law. It was
    designed to obtain specific information from practicing lawyers, concerning
    their experience in the application of State law in their fields. This
    questionnaire was sent to local representatives of the National Association
    of Women Lawyers and to local representatives of the Family Section of the
    American Bar Association. Replies commenting on one or more of the 11
    problem areas were received from lawyers in X5 States. These answers were
    correlated into several charts and analyzed in a report entitled “Inquiry
    301
    Concerning the Impact on Married Women of Twelve Selected Problem
    Areas in Family and Property Law.”
    Other technical assistance also was provided, such as attending meetings
    of the Commission and its committees, with data as needed, and checking
    and reviewing reports.
    The Women’s Bureau requested pertinent information from U.S. embassies
    and prepared reports for the Commission summarizing the replies.
    These reports included: ‘‘ Maternity Leave and Benefits,” * * Protective Labor
    Legislation,” “Government Policies and Practices Regarding the Employment
    of Women in Government Service,” “Women in Top-Level Elective
    and Appointive Positions,” and “Equal Pay in Constitutions and Legislation.”
    These were later prepared for general distribution.
    Reports of the Swedish Government on employment of women and the
    community and the vocational training of middle-aged female labor were
    summarized, as was a report from England covering an investigation of
    care of children of working mothers.
    The Commission’s report will be a basic handbook and guide to program
    and action for community groups, voluntary organizations, government
    agencies, and everyone concerned with responsibilities and contributions
    of women in America today.
    INFORMATION SERVICE
    The effectiveness of the Women’s Bureau program depends in large part
    on keeping the public informed—especially those segments of the public
    concerned with the welfare of working women. For this reason, the
    Bureau provides the widest possible dissemination of its findings and
    reports, as well as information concerning its programs and services.
    During fiscal 1963, the Bureau issued a number of technical publications,
    pamphlets, and leaflets. In addition to news releases on all its major
    activities, the Bureau provided special articles for periodicals, including
    professional journals, and material for TV and radio programs on women
    as workers and as citizens.
    Among the technical reports published and distributed during the fiscal
    year were publications entitled “15 Years After College—A Study of
    Alumnae of the Class of 1945”; “Economic Indicators Relating to Equal
    Pay”; “Connecticut Valley Conference on Employment Problems of
    Women”; “World of Work Conference on Career and Job Opportunities”;
    “Report of the National Conference of State Minimum-Wage Administrators”;
    the “1961 Handbook on Women Workers”; and “Women Workers
    in i960: Geographical Differences.”
    Press releases issued during the year, some of which were based on
    major addresses of the Bureau Director, reported on new jobs for women,
    equal pay for women who work, day-care centers for the children of
    women workers, contributions of women to the Federal service, the role of
    women in the space age, the need for additional women workers in shortage
    302
    occupations, and the plight of women in the occupations and industries
    which are covered by neither Federal nor State minimum wage laws.
    Indicative of the widespread interest in the status of women workers
    were requests for the Bureau Director and staff members to participate in
    conferences of national significance. Among these annual conventions or
    other meetings were those of the National Federation of Business and
    Professional Women’s Clubs, the National Council of Jewish Women,
    International Council of Women, the National Conference on Social Welfare,
    the National Council of Catholic Women, the National Council of
    Negro Women, the Young Women’s Christian Association, and the Southwestern
    Regional Governors’ Conference on the Physically Handicapped.
    Growing emphasis in the education and training of women was reflected
    in a number of conferences held by educational associations or institutions.
    Among those in which the Bureau cooperated were meetings of the California
    Association of Women Deans and Vice Principals, Smith College,
    University of Nevada, College of Southern Utah, Mountain States Adult
    Education Conference, Harvard University Seminar on Education and
    Public Policy, and University of California School of Medicine Symposium
    on Women.
    Among union meetings addressed by the Bureau Director were the Utah
    State AFL-CIO annual convention and the Women’s Auxiliaries of the
    International Association of Machinists. Unions supplied with exhibits
    of Women’s Bureau publications included the New Jersey State AFL-CIO;
    International Leather Goods, Plastic and Novelty Workers’ Union; Communications
    Workers of America; and the Georgia State AFL-CIO. Bureau
    materials also were displayed at the Ninth Empire State-Labor Management
    Exhibit, North Carolina Trade Fair, NASA Space Science Fair, Northeast
    Commerce and Industry Show, and the Texas-Oklahoma Fair.
    Requests for information about women who work and about the programs
    and services of the Bureau came from a wide span of groups and individuals
    including employers, unions, public and private employment services,
    women’s organizations, church groups, students, educators, Members of
    Congress, and government agencies. The Bureau distributed more than
    101,000 publications. These included not only technical bulletins on
    trends in women’s employment, hours, wages, and working conditions, but
    a great number of publications containing career information for young
    women and girls and for mature women wishing to reenter the work force.
    U.S. GOVERNMENT PRINTING OFFICEH964
    303

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