[Annual Report of the United States Department of Labor, Fiscal Year 1956]
[From the U.S. Government Publishing Office, www.gpo.gov]


SAN ly-
of the
PUBLIC
13 ’57
United States Department of Labor
FISCAL YEAR 1956
UNITED STATES DEPARTMENT OF LABOR James P. Mitchell, Secretary
UNITED STATES DEPARTMENT OF LADOR ANNUAL REPORT, 1956
UNITED STATES DEPARTMENT OF LABOR
James P. Mitchell, Secretary
3 1336 05750 2891
UNITED STATES DEPARTMENT OF LABOR
ANNUAL REPORT, 1956
Contents
Page
Report of the Secretary of Labor............................. 1
* *	Appendices
Reports of the Office of the Secretary
The Administrative Assistant Secretary.................. 33
The Director of Information............................. 35
The Executive Director of International Labor Affairs.	36
The Director of Personnel............................... 43
The Solicitor of Labor.................................. 44
Bureau Reports
Bureau of Apprenticeship................................ 53
Bureau of Employees’ Compensation....................... 65
Employees’ Compensation Appeals Board................... 79
Bureau of Employment Security........................... 81
Bureau of Labor Standards............................... 135
Bureau of Labor Statistics.............................. 149
Bureau of Veterans’ Reemployment Rights................. 171
Wage and Hour and Public Contracts Divisions........... 179
Women’s Bureau........................................    253
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The Economic Setting
The Nation’s economy continued its vigorous expansion, despite some slackening in housing and automobile manufacturing. Spending on nondurable goods and services far outweighed the moderate decline in purchases of durable goods. Spending on new plant and equipment set a new high.
Trends in civilian employment reflected these developments in an all-time record of 66.7 million in July 1956. This was 2 million more than in July a year ago. The gain was virtually all in nonfarm employment
The civilian labor force, including both the employed and those seeking work, totaled 69.5 million as of July 1956. This was an increase of 2 million in 1 year, and was more than could have been expected on the basis of the usual rates of long-term growth. Most of the increase was among women and youth who enter the labor force when jobs are readily available.
On the payrolls of nonfarm establishments, employment reached a record of 50.9 million in July. Sharpest gains were in nonmanufacturing industries. Gains in manufacturing were chiefly in producer goods, especially industrial machinery.
The factory workweek in July averaged 40.1 hours, slightly down from a year earlier. Most significant reductions were in transportation equipment and rubber manufacture. In the machinery and instrument industries the workweek increased slightly.
Unemployment as of July 1956 stood at 2.8 million, about 400,000 higher than a year earlier, but considerably lower than the peaks of 1949, 1950, and 1954. The rate of unemployment in July was 4.1 percent of the civilian labor force, compared with the 6.4 percent peak in 1949.
New construction activity, at an all-time high of $44.5 billion in July, was 3 percent higher than a year earlier. However, interest rates and tightening of credit caused a 10 percent decline in residential building expenditures. All other types of construction expanded, with private industrial building up by a third over the year.
The Consumer Price Index held stable until late spring. By July it had reached 117.0, a record high, 2 percent more than a year ago. Although to some extent due to unexpected increase in fruit and vegetable prices, affected by bad weather, the increase showed up in all major categories.
Incomes also were rising. Total personal income in July stood at $324-3 billion, 5 percent higher than a year ago. Weekly earnings of factory workers contributed to this rise. They averaged $79 in July, or
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a rise of $2.50 over the year. Hourly earnings for July averaged $1.98, about 10 cents higher than for the same period the year before. Earnings in nearly all of the major nonmanufacturing industries also gained over the year. The increases were larger than the manufacturing rise in a number of lines, including coal mining, contract construction, gas and electric utilities, and wholesale trade.
Wage rises outstripped consumer price rises. In terms of purchasing power, average weekly take-home pay in July was 1 percent higher than a year earlier.
Legislative Program
Enacted Legislation
The legislative program proposed during the 84th Congress by the Department was one of the largest presented to any Congress, but only the following proposals were enacted:
Minimum Wage
Most important measure was the raising of the minimum wage rate under the Fair Labor Standards Act from 75 cents to $1 an hour. The wider coverage called for by the President was not adopted. Congress directed that the Secretary of Labor annually appraise and evaluate the effects of the minimum rates. Other amendments modified procedures for establishing minimum wages for Puerto Rico and the Virgin Islands; the changes eliminate hearings before the Secretary of Labor (or his authorized representative) and his authority to review the recommendations of industry committees. The minimums in these areas must now be reviewed annually (Public Law 381, approved August 12, 1955).
Mexican Farm Labor
Congress extended the expiration date of Public Law 78, 82d Congress, to June 30, 1959, and amended the law so as to relieve employers of double liability on costs of returning workers to Mexico, and to require the Secretary to consult with agricultural employers and workers in determining the facts on unavailability of local domestic farm labor. (Public Law 319, approved August 9, 1955.)
Veterans’ Unemployment Compensation
Congress approved a recommendation placing a 3-year limit on the time within which Korean veterans may receive unemployment compensation benefits, but rejected the proposed exception that this limit should not apply to those pursuing education or vocational rehabilitation programs. (Public Law 176, approved July 16, 1955-)
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Safe Transportation of Migratory Farm Workers
Congress authorized the Interstate Commerce Commission to regulate equipment and operation of vehicles used in the interstate transportation of migrant farm workers. (Public Law 939, approved August 3, 1956.)
Veterans’ Reemployment Rights
Congress amended the Universal Military Training and Service Act, clarifying the enforcement of reemployment rights provisions for certain reservists and rejectees. (Public Law 665, approved July 9, 1956.)
Longshoremen’s and Harbor Workers’ Compensation Act
Congress approved legislation increasing compensation benefits under this act, reducing waiting periods, and providing for more effective use of the special fund under the act. (Public Law 803, approved July 26, 1956.)
Unenacted Legislation
The bulk of the Department’s 1955-56 program was still unenacted at the end of 1956. Included in this program were recommendations for simplification and clarification of the 8-hour laws; grants-in-aid to States for safety programs; allocation to Federal agencies of costs of the Federal Employees’ Compensation Act on the basis of accident experience; equal pay for equal work legislation; the registration and filing of annual reports on health, welfare, and benefit plans; the provision of Federal financial and technical assistance to areas with substantial and persistent unemployment; transfer of the District of Columbia Public Employment Service from the United States Department of Labor to the District of Columbia government; improvement of the District of Columbia unemployment compensation law; the establishment of temporary disability insurance in the District of Columbia; extension of the unemployment insurance system to Puerto Rico; and the protection of Labor Department employees enforcing Federal labor laws.
Appropriations and Expenditures
The appropriations for the Department for the fiscal year 1956 were $469,872,346, an increase of $22,704,503 over 1955.
Of the total in 1956, administrative expenses and provision for 5,176 positions totaled $32,636,400. The balance of $437,235,946 was for grants to States for State administrative costs of the employment service and unemployment compensation programs, unemployment compensation payments to veterans, unemployment compensation payments to Federal employees, and workmen’s compensation payments under the Federal Employees’ Compensation Act.
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Positions Amount
General administrative expense items are detailed below:
Office of the Secretary-------------------------------------------
Office of the Physically Handicapped------------------------------
Office of the Solicitor___________________________________________
Bureau of Labor Standards-----------------------------------------
Bureau of Veterans’ Reemployment Rights---------------------------
Bureau of Apprenticeship------------------------------------------
Bureau of Employment Security-------------------------------------
Mexican Farm Labor Program----------------------------------------
Bureau of Employees’ Compensation---------------------------------
Bureau of Labor Statistics----------------------------------------
Women’s Bureau____________________________________________________
Wage and Hour and Public Contracts Divisions----------------------
256
13
308
96
50 499 740 234 424 966
55 1, 535
$1,677,850 135,900 1,812,400 730,600 383,000 3,350,800 5,350,350 1,957,000 2,317,000 6,407,000 371,000
8,143,00C
Subtotal.
5,176	32,636,400
State grants and benefit payments were as follows: Grants to States for employment security programs. Unemployment insurance benefits, veterans--
Unemployment insurance benefits, Federal workers. Employees’ compensation benefit payments_
250,000,000 105,067,250
33,000,000 49,168,696
Subtotal__________________________________________________________________________ —	437,235,946
Grand total expenses.
469,872,346
Law Enforcement
The Department has been vigorous in strict enforcement of the labor standards laws for which it is responsible. Although it attempts to obtain voluntary compliance with such laws wherever possible, it has not hesitated to take action against those who violate them, both for the benefit of workers involved and for the benefit of fair employers who are damaged by unscrupulous competition.
Fiscal 1956 saw exceptional success for the Department in cases reaching the Supreme Court. In a year which brought the largest number of cases and many of the most important questions of any year during the past nine, the results were 100 percent favorable to the Department’s interpretation of the two major Federal wage and hour laws, the Fair Labor Standards Act and the Walsh-Healey Public Contracts Act. Further, during fiscal years 1955 and 1956, the 19 petitions for Supreme Court review of cases in which the Secretary of Labor was a party or participated were all disposed of in support of the Department’s position. The net result is that the Court reversed every lower court decision restricting the applicability of these statutes and left in effect (by denying review) every appellate court decision sustaining their applicability. Twelve of these cases were decided during fiscal 1956.
Fair Labor Standards Act
Amendment of the Fair Labor Standards Act, raising the minimum wage to $1 an hour and changing procedures for establishing minimum wages in Puerto Rico and the Virgin Islands, resulted in considerable expansion of the Wage-Hour Division, and intensification of its work.
Studies to measure the impact of the new minimum are being made. An intensified educational campaign regarding the significance and meaning of the law is being conducted with good results. Enforcement of the new
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minimum wage necessitated an increase in field personnel and field offices, distributed according to the need for their services, on the basis of industries and areas most affected by the new minimum rate. Techniques for uncovering information relevant to investigations were bettered, and many improvements were made in the planning of enforcement programs.
An earlier interpretative bulletin on hours worked under this act has been revised and expanded to clarify problems of special interest. Despite the fact that the act does not require Department approval of employee benefit plans meeting the requirements of section 7 (d) (4) of the statute, many employers requested rulings.
Adjustments in learner rates under the act have been made in the light of the new statutory minimum. These learner rates bear roughly the same relationship to the $1 minimum as did the learner rates established when the earlier 75-cent minimum went into effect.
In conformity with the wishes of Congress, the wage-order program for Puerto Rico and the Virgin Islands has been greatly accelerated.
Enforcement actions have increased from a total of 646 filed in 1955 to 719 in fiscal 1956. During fiscal 1956, more than $6 million in back wages was paid to 74,762 employees by 13,596 firms. Investigations showed that 27,617 employees were being paid less than the legal minimum in 4,468 establishments, which as a consequence owed them over $1^ million. Restitution brought about as a result of litigation totaled almost $423,000, as compared with $193,000 in 1955.
Failure to compensate employees properly for overtime work was disclosed in 15,484 establishments, involving more than 97,000 employees and almost $9% million.
In 2,953 nonagricultural establishments, 4,831 young workers were found employed in violation of the child labor provisions of the Fair Labor Standards Act; and 4,285 children under 16 were found working on farms during school hours in violation of the law. Of minors 16 and 17 years of age, 2,644 were found to be working illegally in jobs for which the minimum age is 18 under hazardous occupations orders issued by the Secretary of Labor; and 51 children under 14 were found to be working at jobs declared hazardous.
This vigorous enforcement of the child labor provisions of the Fair Labor Standards Act, supplemented by the Department’s educational program, has resulted in improved compliance, particularly by farms previously visited by investigators. It has contributed to an increase in school enrollment of children from 10 through 15 years of age in rural farm areas.
Public Contracts Act
Hearings in administrative enforcement actions under the Walsh-Healey Public Contracts Act were 18 in fiscal year 1955 and 24 in 1956.
For the first time in almost 20 years of this act, prevailing minimum wages were determined for the soft coal industry. The determination
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established wage rates ranging from $1.40 to $2,346 for workers engaged on Government work. Also for the first time, a determination was issued for the office machines industry, with a minimum rate of $1.10 an hour.
Judicial review of the determinations for the woolen and worsted and the textile industries resulted in favorable decisions for the Secretary of Labor. These decisions are regarded as major accomplishments in upholding industrywide wage determinations.
Davis-Bacon and Related Acts
Complaints processed by the Department to obtain enforcement of construction wage laws increased from 392 in 1955 to 625 in 1956.
The ineligibility (blacklist) provisions available against flagrant violators were applied against 14 firms and 22 individuals during fiscal 1956, as compared with 12 and 16 in 1955. During 1956, a total of almost $225,000 was restored to 2,203 employees who had not been paid in accordance with the Davis-Bacon Act.
Manpower Utilization
Discrimination in employment, whether directed against race, sex, age, or physical handicap, is wasteful of manpower, destructive of national morale and character, and contributory to slums and delinquency. There is neither excuse nor justification for prejudice and discrimination in employment. It is clear that as a nation, both domestically and internationally, we are injured by prejudice and intolerance.
The Department has been engaged in taking a fresh look at today’s employment problems of older workers and youth, of women workers, of the physically handicapped, of workers in areas of persistent labor surplus, of members of minority groups, and of job seekers wherever they may be, looking toward new action programs to improve their lot. At the same time, the Department is studying population and labor force trends and the possible impact of automation, atomic energy, and other technological development on future labor requirements.
Improving the Skills of the Work Force
To prepare a new Departmentwide program for the development and utilization of the Nation’s work force a small group of specialists, under the direction of a Special Assistant to the Secretary, was established.
This group was directed to review the Department’s activities in the area of manpower utilization and development, to make recommendations for strengthening and coordinating these activities, and to suggest new projects or activities which would contribute to skill development and fuller utilization.
The broad problem was to determine how the Nation could achieve an adequate, skilled, and versatile work force to meet current and anticipated economic conditions and needs, including considerations of military
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security. As part of the same problem it was also necessary to consider how to increase the job opportunities, earning ability, and economic security of the individual worker, without regard to race, creed, sex, age, or physical handicap.
The first step was to identify the proper role of the Federal Government. This was done through meetings with representatives of industry, labor, education, and government. Recognizing the responsibilities of numerous other groups, the role of the Department was considered to be in these areas: Fact finding and the dissemination of information concerning the need for trained workers; helping workers select, prepare for, and obtain jobs in suitable occupations; and promoting more adequate training programs.
Several projects were developed to enlarge and strengthen the fact-finding services already performed by the Department of Labor, with special attention to the manpower implications of technological developments in significant occupational areas. The program of publications in this field was stepped up.
Contributions of the Department in helping workers in connection with their job training are discussed at length under several other headings in this report.
Except in the area of apprenticeship, the Department has not previously attempted to promote on-the-job training in industry. How to bring to the attention of industrial management the need for more and better training programs, and to stimulate action, were the problems to be solved. Several pilot projects, therefore, were planned to bring individual communities and industries face to face with the problem.
The first of these, initiated in Arizona, is designed to encourage selected communities to survey their own future manpower requirements and training needs and to plan effective means of meeting them. The experience gained through this project should provide the know-how for similar surveys in other communities.
A similar project is being developed for selected industries, in which the industry association will sponsor an intensified manpower study.
A third project, designed to assist industry in developing training programs, involves the assembly and dissemination of training materials, methods, and techniques prepared by the Department of Defense and other government agencies, private companies, educational institutions, etc., for their own use, but which have not been organized or made generally available.
And finally, plans have been initiated for coordinating the Department’s skill improvement program with related activities of other Federal agencies.
Older Workers
During fiscal 1956, the Department completed a series of studies and demonstration projects on the older worker. These studies were conducted to develop facts on the validity of age barriers to employment, and to
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provide a sound basis for a nationwide educational and operating program designed to increase job opportunities for middle-aged and older workers.
A pilot study on work performance by age measured the average output per man-hour of more than 2,000 piece-rate workers in 8 footwear and men’s clothing plants. It showed that output per man-hour remained stable through age 54, and that average output of those 55-64 was at least 90 percent as high as that in any younger group. The study also showed that differences in output among individuals in the same age group were actually larger than those between the averages of the age groups themselves.
A review of collectively bargained provisions affecting the hiring, retention, layoff, and recall of older workers showed that seniority and pension provisions are a great protection to older workers who stay on the job. The widespread acceptance of provisions which have the effect of banning discharge on the basis of age alone (without consideration of the worker’s efficiency) affords a basic protection for the older worker. This protection is strengthened by the availability of grievance and arbitration procedures. Moreover, in about 1 out of 6 agreements, provisions for dismissal pay, typically graduated by years of service, cushion the effect of loss of job for reasons beyond the workers’ control.
Few provisions, however, were found which protect older workers laid off and forced to seek new employment. Relatively few contracts, it was found, carry provisions forbidding age discrimination in hiring, and only a few provide for older-worker ratios on the job or for special transfer rights to less taxing jobs for the older worker grown old in the service of a company and no longer able to meet the requirements of his job.
A study of the effects of pension costs on the hiring of older workers, conducted with the assistance of a committee of experts from the insurance and pension fields, showed that such costs ought not to be considered a barrier to the hiring of older workers.
It showed that the real cost of pensions is not what appears to be the current contribution, but the amount that is ultimately paid to the individual upon retirement. The evidence indicated that the amount finally paid to the man hired young will be much greater in proportion to current charges than the amount finally paid to the man hired when older.
A study of experience of older workers in getting new jobs through the facilities of the public employment system in seven major cities showed that placement results could be quadrupled by intensive counseling and placement effort. The study also revealed that although the majority of employers restrict hiring on the basis of age, there are wide differences by area, occupation, industry, and size of firm, and further, that many employers will ease or abandon age restrictions when qualified older workers are brought specifically to their attention for consideration. As a result of this study, and consistent with available funds, steps were taken to strengthen counseling and placement services in the State employment services by providing special funds to appoint older-worker specialists in
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all State headquarters offices of the employment service and in 70 major cities.
A study of the characteristics of the older unemployed worker in seven major cities reveals that there are twice as many skilled job seekers past 45 as in the younger age group, but that these workers have less formal education and a higher incidence of physical disability. The study points up the fact that there are many skilled and experienced workers among older job seekers, but that for some there is need for an expansion of basic education, job training, and vocational rehabilitation services in order to improve their employability in a dynamic and highly mobile labor force.
The basic field work in a study of seven cities on the characteristics of the employed older worker, and of employer policies and practices in hiring, retention, and retirement of older workers, was completed during the fiscal year. The final editing and publication of reports on all these studies will be completed during the first quarter of fiscal 1957. The reports are being published under the following titles:
Job Performance and Age, BLS Bulletin No. 1203.
Older Workers Under Collective Bargaining, Parts I and II, BLS Bulletin No. 1199-1, -2. Pension Costs in Relation to the Hiring of Older Workers, BES Bulletin No. El50.
Counseling and Placement Services for Older Workers, BES Bulletin No. El52.
How To Conduct an Earning Opportunities Forum, Women’s Bureau Leaflet No. 25. Older Worker Adjustment to Labor Market Practices, BES Bulletin No. E153.
A special project to stimulate job and training opportunities for mature women was conducted on a pilot basis in Baltimore and Boston. As a result, a publication, How To Conduct an Earning Opportunities Forum in Your Community, was prepared. It recounts the methods used to plan, organize, and conduct a forum in behalf of older women looking for work and to bring them together with employers seeking qualified workers for jobs which older women can fill. These forums were quite successful, and have created great interest in the forum idea in all parts of the country.
The results of these studies and action programs are being published, and will be used in fiscal 1957 to develop an intensive operating program of counseling and placement services for older workers in State employment services. Significant findings bearing on the employability of older workers, and on the importance of giving individual consideration to their qualifications for employment, are being widely publicized in an educational program using all available public relations media.
Youth Employment Program
Through its affiliated State employment security agencies, the Department during the past year has stepped up its program of youth counseling, testing, and placement of high school graduates and young people who drop out of school. Currently, facilities are available in the States and local areas for counseling close to 225,000 young people with reference to full-time jobs as well as vacation jobs. In the coming fiscal year this program will be further enlarged.
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In the field of training, the Department is intensifying its efforts to enlarge the number of apprenticeship programs, and to make sure that the advantages of sound training in needed skills are effectively presented to young people and prospective employers.
The Department’s program for providing sound occupational outlook data to help young people in choosing a future occupation has also been materially enlarged. A number of new bulletins on outlook for employment in particular occupations, and on training needs in professions where there is now a shortage, have been issued. They are used by counselors in the employment offices, in schools, in military installations, and by thousands of individuals.
The Department’s policy regarding young people 14-17 years of age consists of 5 main parts: (1) To keep youth at school as long and as regularly as possible, compatible with the development of their abilities; (2) to help those who leave school at 16 and 17 years of age to get jobs offering useful employment experience; (3) to protect employed youth against exploitation and employment in hazardous occupations; (4) to advise communities on the development of programs for the guidance of youth who are no longer in school and have not yet established themselves in jobs; and (5) to advise employers on the needs and possibilities of youth as workers, and the laws governing their employment.
One new hazardous-occupation order was issued during the year establishing an 18-year minimum age for certain work in the brick and tile industry. An amendment to an existing order to bring it in line with current industrial conditions was also made.
During the year, in collaboration with the Office of Education, the Department issued a Fact Sheet for Back-to-School Campaigns. Its Advisory Committee on Young Workers suggested the need for such campaigns to help youth, parents, and others to see the practical advantages to youth of continuing their education.
The employment service not only published a revised edition of the popular Job Guide for Young Workers, but also strengthened its local office facilities for serving young people. The Bureau of Labor Statistics began a revision of its definitive Occupational Outlook Handbook for the use of youth counselors; the revision of this useful reference work will be published next year.
Community groups were supplied with a kit of material on how to plan and conduct cooperative summer job programs for older youth, and another describing the importance of maintaining sound child labor standards.
To help employers comply with the laws against the unlawful employment of children, a bulletin entitled “Employment Certificates Help You Help Youth’’ was published by the Bureau of Labor Standards. The demand for the first edition of this publication has already necessitated two reprintings, with a total distribution of 40,000 copies. The certificate provides employers with proof of age under the child labor provisions of the Fair Labor Standards Act.
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Contributions made by the Wage and Hour and Public Contracts Divisions are described under “law enforcement.”
Apprenticeship
The number of apprentices registered under programs approved by State apprenticeship authorities or by the Bureau of Apprenticeship (established under Public Law 308, 75th Cong.) rose by 17,000 to a total of 180,000.
Despite this marked increase, the number of apprentices, whether or not registered, currently employed in the United States, is still inadequate to meet skilled labor needs. The further promotion of apprenticeship is therefore of prime importance.
In cooperation with the Department’s Bureau of Apprenticeship, industry is stepping up the development of high-level skills. Management and labor are jointly perfecting long-established apprenticeship systems and organizing new apprenticeship systems to support industrial expansion.
During 1956 multiestablishment apprenticeship systems, conducted by union-management committees, were revised and improved. More than 800 of these large systems instituted formalized financing plans, usually involving an assessment on each man-hour worked. Part of these new funds will support the employment of 70 additional apprenticeship coordinators, a fourfold increase over 1955-
Another type of program which is helping to expand and improve skill training is nationwide contests to recognize superior apprentices. During 1956, five national organizations conducted such contests with Bureau assistance. This competition serves to call attention to strong points as well as weaknesses in local apprenticeship programs, and stimulates the improvement of quality. Several national groups also issued manuals, policy statements, or operating plans to guide their local affiliates.
An outstanding project during the year was the comprehensive survey of foundry training needs, sponsored by a committee of the American Foundry Society. Bureau representatives surveyed 40 of the most highly mechanized foundries. Presented to the association’s convention, the results led to the planning of a similar survey of nonmechanized job foundries for 1957. Later, an action program based on these studies will be designed and placed in operation.
The Bureau provided continuing technical guidance and promotional assistance to 132,000 establishments, 10,000 local unions, and 2,000 management associations. Higher quality in training methods to impart the additional skill required in rapidly changing technology was the most widespread objective. More than 15,000 revised programs, designed to improve training techniques, were reviewed and evaluated by the Bureau. New training requirements for electronic and machine-tool mechanics, stimulated by the growth of continuous automatic production, obtained special attention.
To facilitate administration of the apprenticeship provisions of the Davis-Bacon Act, the Bureau joined the Office of the Solicitor in sponsoring a con
407351—57----2
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ference of the leading contracting agencies of the Government. Bureau technicians also provided assistance in connection with the revised apprentice regulations of the Fair Labor Standards Act and the Korean GI bill training plan.
Handicapped Workers
Expanded opportunities for useful work have been created for the physically handicapped. Vocational rehabilitation programs have been improved and extended.
During fiscal 1956, more than 290,000 handicapped workers were placed in jobs by the public employment service. This is the largest number for any peacetime year, and the largest in any year since World War II. It does not include additional thousands helped through independent means.
Also, a record number of almost 66,300 handicapped workers were restored to productive employment through State-Federal vocational rehabilitation programs. This total was the highest since the programs began in 1921, about 14 percent higher than the total for 1955.
Areas of Persistent Labor Surplus
Some areas suffer from persistent underemployment, despite general high levels of employment and growth elsewhere in the Nation. The Department has under way a number of activities to give them assistance centering on the local employment offices of the Federal-State employment service. These include: (1) Encouraging and assisting the communities to develop local organizations responsible for economic rehabilitation; (2) pilot efforts to assist a limited number of areas in order to demonstrate how effective program operations can be undertaken through the cooperation of Federal, State, and local agencies, both private and public; (3) economic and labor force analyses which provide the necessary basis for the manpower aspects of planning and operations; (4) increasing employment service efforts to relieve local unemployment by providing guidance and information on job opportunities in other areas; and (5) emphasizing the importance of skill training, and assuming leadership in assisting such areas to determine realistic training needs.
The Department continues to issue a bimonthly classification of 149 major and several minor labor market areas, identifying the relative adequacy of their labor supply, and analyzing the economic factors accounting for the current classification. The basis for this classification was revised at the end of last fiscal year. This revision has been found to be an improvement. The classification is used in identifying areas of persistent labor surplus where Government procurement contracts should be placed to help correct the problem.
Characteristics of the Insured Unemployed
Appropriations made available by Congress became effective this year for studies of the unemployed. This is one of the most far-reaching of the
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Department’s new programs. Information is to be used in the development of national policies and programs dealing with unemployment in general. The first of these studies provides monthly information on the personal and economic characteristics of the unemployed.
The labor force is not static. People are constantly moving into and out of it, and within it people are also constantly moving from place to place. No longer is one figure—two, three, or four million unemployed— enough to measure the significance of unemployment at any given time. We also need information which will tell us, among other things, what industries the unemployed come from, what their major occupations are, how old they are, of what sex, and the duration of their unemployment.
Through these figures not only can we measure the significance of unemployment, but also we can detect problems much sooner. We can see what is happening to specific groups of workers as fast-moving technological or other changes take place.
The program is based on a 1 percent scientific sample of claimants for unemployment insurance. The June report, summarizing the first half year’s information on the characteristics of the insured unemployed, showed that the decline in the number of unemployed was accompanied by significant changes in the industrial distribution of the jobless. In June, 63 out of every 100 were factory workers, compared with 44 in January. The proportion from construction dropped to 7 percent in June from 23 percent in January. Men comprised 58 percent of claimants in June in contrast with 69 percent at the beginning of the year. Also reflecting the changed industrial composition, the proportion who were skilled went down from 19 percent to 13 percent at mid year.
For the first 6 months of the year the composition of the insured unemployed by age and by marital status remained practically unchanged. The average length of insured unemployment was in excess of 8 weeks in June, 2 weeks longer than in January when postholiday layoff’s in trade were heavy and new unemployment in construction was rising. Older workers consistently had longer periods of unemployment than the younger unemployed. Special pilot studies of unemployment are also being made in selected cities.
Women’s Affairs Activities
A number of programs of the Department affect the welfare of women workers. These have been given special attention and coordination through the appointment in September 1954 of an Assistant to the Secretary for Women’s Affairs. The creation of this position has made it possible to give more effective attention to the problems of women workers and to coordinate all of the Department’s activities dealing with women’s affairs.
A handbook of statistical and other information on women workers is being prepared for publication next year. Studies have been published on the employment outlook for women in professional engineering, accounting, and beauty service. Membership surveys were conducted at the request of
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the Society of Women Engineers and the National Association of Bank Women. In a joint survey with the Women’s Section of the National Vocational Guidance Association, a study was made of women college graduates of 1955; the report will be published next year. In collaboration with the Department of Defense a report on career fields open to women in the Armed Forces was given wide distribution.
Widespread publicity was given to the idea of providing special teacher training for mature, college-educated women who no longer have full-time home responsibilities. Initiated by the Department of Labor in cooperation with the Department of Health, Education, and Welfare, this special teacher project has helped to attack two of the most pressing problems facing today’s society. On the one hand, it has enabled mature women to use their skills and abilities. On the other, it has added qualified newcomers to the Nation’s understaffed classrooms. By late October, approximately 100 colleges and universities in 27 States were offering the special teacher training courses and some 11,000 women already had completed or were enrolled in the accelerated programs, according to reports received from half of the institutions.
A second project initiated during the year for mature women was the Earning Opportunities Forum, a new practical approach to the problems of mature women who seek jobs or training to qualify them for employment. Basically a community-action program, the forum or 1-day meeting affords employers an opportunity to present their personnel requirements to the community, permits an open and objective evaluation of the needs and potentialities of older women job seekers, and at the same time contributes to the economic well-being of the community. Pilot projects of the Earning Opportunities Forums were held in Baltimore and Boston during the year and requests for forums were received from other communities.
A shortage in professional nursing has been of great concern in the Women’s Affairs Program. Exploratory meetings designed to help provide a solution were held with the American Nurses’ Association, the National League for Nursing, the American Hospital Association, and the Department of Health, Education, and Welfare. The Bureau of Labor Statistics is presently collecting data on earnings, hours, and conditions of work of hospital personnel. In addition, the Women’s Bureau is making a special study of accelerated nurse training programs which seem particularly suited to mature women.
Technical assistance on legislation and standards in the field of minimum wage and equal pay have been given to many States.
Women leaders from abroad have been assisted in their visits to study American ways, and a national conference on the Women’s Affairs Program was held late in the year.
Migratory Farm Labor
A major problem, justifying the appointment by the President of a special cabinet committee to study and act on it, is the migratory farm labor
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problem. It is already evident that the solution to this problem lies in the understanding by all concerned—worker, employer, Federal and State authority—that planned migration is more efficient in its results, and less of a strain on the individual, than the random, undirected movement of the past. It is also clear that higher standards of housing, health, and transportation are an essential part of this planning. To these ends the committee and various agencies interested in the problem have directed their efforts. Farm placement offices of the employment service play a major role in this program, and the Bureau of Labor Standards has helped in the analysis of State and Federal laws affecting migrant workers and in giving consultative advice to many of the States.
The President’s Committee on Migratory Labor recommended Federal regulation of interstate transportation of migrant workers with a view to protecting their health and safety. The 84th Congress enacted legislation giving the Interstate Commerce Commission authority to regulate such transportation of migrant workers.
The migratory labor problem, however, is not merely a Federal problem. It also requires State and local action. The President’s committee therefore has developed suggested language for State regulation of intrastate transportation of migrants and for their housing. The establishment of State migratory committees has been recognized as an effective way to coordinate and encourage State action in this field.
Activity in the States is growing. During the past year, 5 new State migratory labor committees were appointed. Several other States report that they hope to set up committees soon. There has been a great deal of local activity. Dozens of communities are setting up committees and programs, including day care centers, special schools, health programs, and other projects for migrant workers. The Department has given assistance on migratory labor in 18 States during the year, both to State agencies and to local and community groups.
Technological Change
How rapidly are technological changes taking place today, and what are their effects on the economy of the Nation and the welfare of its workers? Which industries and occupations are the most markedly affected? And what can be done to reduce the impact of change on the lives of individuals?
The answers to these questions directly impinge on the work of the Department. Consequently the Department has initiated research studies in this area. Training and retraining, for example, are necessary for persons in occupations obsolescent as a result of technological change; here a study has been made in automatic foundries. Job requirements and the occupational outlook in industries and occupations affected by technological improvements are being given special attention, in order to provide vocational guidance to young people and others interested in these new develop
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ments. Public employment offices are being advised on recruitment problems arising out of the need for specialized skills in these fields.
Potential labor displacement is being constantly watched. Case studies are being made of individual plants to determine what happens when a new technique is introduced: how many workers are affected, what steps management and workers have taken to make the necessary adjustment.
The contributions of the Department in the field of technological change have been of use to other departments and the Congress. During the fiscal year the Department contributed to hearings, later published in a report, by a subcommittee of the Joint Economic Committee.
Progress is now being made in the preparation of a departmental yearbook on the American worker and changing technology, to be published in 1958.
Peaceful Uses of Atomic Energy
In December 1955 the Department established an atomic energy study group to study the possible effects of peaceful uses of atomic energy on the Nation’s work force, and particularly on levels of employment and unemployment, labor turnover, job opportunities, training, safety, workmen’s compensation, and productivity.
The study group explored areas in which the effects could be evaluated. Nonclassified published materials were reviewed in detail. Contacts were made with Atomic Energy Commission officials, interested industry groups, trade union leaders, research organizations, and other informed persons. Through mail inquiries and field visits, supplementary factual data and opinions were obtained from representative firms and trade unions involved in peaceful atomic developments.
By the end of fiscal 1956 the study group had completed the first draft of a comprehensive report. One member of the study group has been retained for fiscal 1957 to keep abreast of current developments in this rapidly developing new technology. Arrangements are being worked out with the Atomic Energy Commission for coordination of activities in these fields to achieve maximum effectiveness and to avoid duplication of effort.
Mobilization Activities
As part of the Nation’s mobilization program, the Department has been given responsibility for developing preparedness measures relating to the expansion, distribution, and effective utilization of the civilian labor force, and the improvement of its skills, and to the planning of wage and salary stabilization programs. Departmental coordination is to be effected through an Office of Manpower Administration and an Office of Wage Administration.
The Department is also responsible for recommending methods for the compensation of authorized workers in a civil defense emergency, and for developing programs for their compensation in the event of injury or death while on duty. It is working with selected State employment security
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agencies to develop a program providing temporary aid to members of the labor force during periods of idleness due to destruction of working places through enemy action, a program for providing techniques for the training or retraining of essential workers during a mobilization period, and a program of reemployment rights for civilian workers who perform emergency disaster work.
The Department also has responsibility for providing assistance to employers and workers on labor standards, housing, community facilities, and incentives which should be operative during a civil defense emergency or during a period of full mobilization.
Methods have been developed, in collaboration with other departments and agencies of Government, for estimates of possible bomb damage, available manpower and shortages, and the occupational and labor force characteristics of survivors of an attack.
In collaboration with the Bureau of the Census, techniques have been developed for estimating daytime and nighttime populations in certain target areas.
The list of occupations critical to essential industries continues to be maintained. It is currently used as a guide for screening the reserve and in connection with voluntary enlistments and the 6-month military training program.
Manpower studies have been made in such defense-significant industries as air transportation, aircraft manufacturing, water transportation, trucking, canning and preserving, warehousing, precision springs, and various kinds of precision instruments.
Programs and plans have been developed for full cooperation of national, regional, and local employment service offices in alerts to test the preparedness of government organizations.
On a limited scale the Department has tried out its plan for using the expert services of individuals from educational institutions, industry, labor, the professions, and other related groups on an “executive reserve” basis.
The Department has participated in all manpower planning discussions of the Manpower Policy Committee of the Office of Defense Mobilization and the Coordinating Board of the Federal Civil Defense Administration.
Labor Statistics
With the cooperation of two research advisory councils, one representing labor organizations, and the other business organizations, the Bureau of Labor Statistics maintains continuous and helpful relations with two of the chief consumers of its products. During the year, significant studies have been made in the following fields: Manpower and employment, prices and cost of living, automatic technology and productivity, construction and housing, work injuries, wages and industrial relations, and foreign labor conditions.
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Manpower and Employment
Responsibility for data on government employment were transferred to BLS from the Bureau of Census, U. S. Department of Commerce, and the responsibility for computing seasonal movements of employment in industry from the Federal Reserve System. Statistics on overtime worked in manufacturing were added to the existing complex of economic indicators. Actuarial tables of working life for women were published for the first time, and a series of pamphlets on educational requirements in several significant professional occupations was published. A comprehensive report on Science and Engineering in American Industry was prepared and published at the request and with the support of the National Science Foundation. Work began on the third edition of the Occupational Outlook Handbook.
In fiscal 1956, the Department began the conversion of the national program of labor turnover statistics to a cooperative State-Federal program.
Prices and Cost of Living
In cooperation with the BLS, the Wharton School of Finance and Commerce of the University of Pennsylvania published 10 volumes of statistics on consumer expenditures, income, and savings. Eight additional volumes are due for early release. A new price index at the primary market level has been developed to present data for three major sectors of the economy: crude materials for further processing; intermediate materials, supplies, and components; and finished goods. Each of these, in turn, is broken down into component categories. This is a major project of far-reaching significance.
Technology and Productivity
In the field of technological change, the Department has published a major work on trends in productivity in manufacturing for the years 1939-53. This contribution has been of considerable use to the Council of Economic Advisers and the Joint Economic Committee. Several automation case studies have also been published. The Bureau is now engaged in a program to estimate the gross national product per man-hour for the total private economy, farm and nonfarm, the latter subdivided into manufacturing and all other industries.
Construction and Housing
Because housing is such an influential factor in the Nation’s economy, developments in the rate of new housing starts have to be closely watched and precisely measured. During the year, several measures were taken to improve housing statistics. Particularly has it been found desirable to refine the existing series back to 1946. The seasonally adjusted private housing starts series was revised to improve its quality as an economic indicator of change in the volume of housing construction. The Depart
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ment is also now publishing details on 50 leading metropolitan areas. Analysis of shifts in size and price of new housing suggests that more families of moderate means are buying houses. In a detailed study begun this year we expect to publish more detailed data of use in determining trends in living accommodations coming on the market.
Work Injuries
Florida and Virginia have entered into cooperative relations with the Bureau of Labor Statistics to make an annual survey of the incidence of work injuries; and negotiations to bring New Jersey also into the Statenational cooperative program have begun.
Foreign Labor Conditions
Two periodicals in the field of foreign labor conditions were started this year. Several studies of labor conditions in foreign countries were completed for the International Cooperation Administration. A bulletin on economic forces in the United States was prepared for the use of foreign visitors.
Miscellaneous
Apart from maintenance of the existing major statistical series, the Department is also continuously engaged in special research projects of interest to Government and groups contracting for inquiries along the lines of their particular interests.
Employment Services
So rapidly is the Nation’s economy expanding that, despite a consistently tighter labor market, regions and cities and towns are still searching for new employers to develop their resources. In this endeavor the public employment services have been able to give considerable help in developing useful labor market information. In areas of persistent labor surplus, these services have been especially necessary.
Placement services have correspondingly increased. Special attention, consistent with past practices, has been given this year to the employment problems of older workers, youth, minority groups, and veterans. More detailed comments on some of these special programs are provided elsewhere in this report.
Employment Office Activities
More than 8 million job seekers filed new work applications at local offices of the public employment service during this year, and job placements exceeded 15% million. Farm placements rose 3 percent, and nonfarm 12 percent. Most substantial increase was in white-collar placements.
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Further steps being taken to improve employment services include plans for the servicing of small communities, revision of job definitions and the development of an improved system for classifying and revealing work skills, improvements in counseling and testing procedures and the training of counselors, strengthening of the program to inform employers of the services that local public employment offices can render, increased emphasis on the placement of professional and scientific personnel, and a broadening of clearance procedures to enable markets in short supply to obtain workers from labor surplus areas or from acceptable foreign sources.
The farm migrant labor program is described elsewhere in this report.
Services to Veterans
Veterans now make up almost 40 percent of the male labor force of the Nation. Their economic conditions are better than those of nonveterans. They experience less unemployment, have less occasion to seek unemployment compensation benefits, and enjoy more favorable opportunities for training and education. Nevertheless they need employment counseling and job placement. The employment service provides this assistance.
As a result of special preference, nonagricultural placements of veterans went up almost 15 percent over last year. Counseling services, mostly, to younger (Korean) veterans, declined about 14 percent.
Special attention is given to the employment needs of physically disabled veterans; placements increased 27 percent over last year to the highest record in 5 years. And efforts were continued to improve employment services to veterans about to be discharged from hospital.
In cooperation with the President’s Committee on Employment of the Physically Handicapped, much has been done to remove barriers to the employment of disabled veterans and other handicapped persons.
Veterans’ Reemployment Rights
As predicted in last year’s report, the effects of the Supreme Court decision in the case of Diehl v. Lehigh Valley Pailroad Company continue. Thousands of ex-servicemen are affected, and numerous conferences have been held by the Bureau of Veterans’ Reemployment Rights to help employers and labor organizations revise their personnel policies on the promotion and seniority rights of ex-servicemen.
As a result of the Christner v. Poudre Valley Cooperative case, which pointed up failure of the reemployment statutes to provide full reemployment rights protection for reservists on training duty, Congress this year provided the necessary clarification through an amendment to the Universal Military Training and Service Act. This amendment gives reservists the right to seek enforcement of their reemployment rights in a Federal court if legal action is necessary.
In the opinion of the Solicitor of Labor, the reemployment rights of national guardsmen are also protected under section 9 (g) (3) of the Universal Military Training Act.
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Unemployment Insurance
Improvements in Federal and State laws during 1954 and 1955 have extended protection against the risks of unemployment to an additional 4 million workers. Total coverage is now at a peak of 41.6 million. The average weekly benefit has risen from $25.05 to $26.33, and average potential duration of benefits from 22X weeks to 23 weeks. Puerto Rico now has an “unaffiliated” system, which can eventually be brought into the Federal-State unemployment insurance system. Despite this coverage, about 12% million workers are still not covered.
During the past year, studies have been made and procedures developed to improve actuarial data and financing methods. Tax collections have risen over 16 percent, while benefit payments declined 27 percent. During this year, for the first time, a loan was made from the Federal unemployment account ($3 million to Alaska). Effective January 1, 1956, employer coverage was extended from employers with 8 or more workers to employers with 4 or more.
As a result of collective bargaining agreements, certain workers became eligible for “ supplemental unemployment benefits” beginning June 1, 1956. Federal policy relating to the coordination of this plan with State unemployment insurance programs was developed and published.
Services to the States
The expansion of Federal regulation and control in areas more suited to administrative action by State and local governments is undesirable. There is need for many States to develop stronger labor departments, and enact more up-to-date legislation, particularly with respect to minimum wages, workmen’s compensation, unemployment insurance, disability insurance, employment security, migratory labor, industrial safety, mediation and conciliation, and the development of useful labor statistics.
In all of these areas of possible State development the central problem is the promotion and adoption of more effective labor standards legislation. Greater responsibility for labor standards legislation therefore should be exercised by the States. They experience the problems at first hand; they are best equipped to solve them.
Federal Functions
The Bureau of Labor Standards serves as a national clearing house of information on pending and completed State legislation affecting workers. From all over the country it receives questions and requests for technical assistance on labor legislation. During the past year, continuing a service of almost 20 years standing, some 1,200 State labor bills were reviewed, and the information supplied to those requesting it. Earlier published summaries on State workmen’s compensation laws, child labor laws, second
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injury fund provisions, and “time off for voting” legislation were revised. At the request of several State labor commissioners, the Bureau last year developed and began instruction in a practical training course for general labor inspectors.
Work of the Bureau on occupational safety, migrant farm labor, and youth employment is reported elsewhere in this report.
State Action
The legislatures of 18 States and Territories met during the year in regular session. Labor legislation was enacted in 15 of these jurisdictions, and in 4 other States meeting in special session or in continuation of 1955 sessions, and by the United States Congress for the District of Columbia.
Most significant advances included the adoption of statutory minimum wage rates in Rhode Island and Puerto Rico, applying to men, women, and minors. The Rhode Island rate is 90 cents an hour. The Puerto Rico rate varies with industry, up to $1 an hour. The District of Columbia wage payment and wage collection law provides for semimonthly paydays, except where monthly by custom. It also authorized the District Commissioners to take workers’ claims for collection.
On workmen’s compensation laws, Kentucky and Pennsylvania adopted complete coverage of occupational diseases, and eight States and the District of Columbia raised cash benefits.
Four States amended their unemployment insurance laws to provide increased benefits to some or all claimants, and two States provided additional benefits to workers unemployed because of catastrophies. Puerto Rico enacted its first comprehensive unemployment insurance law.
Louisiana repealed its general “right to work” law, at the same time passing one applying only to agricultural workers and those engaged in the processing of certain agricultural products.
Laws in Massachusetts and South Carolina relating to atomic energy developments included provisions for the study by the labor departments of hazardous working conditions, and by the workmen’s compensation agencies of problems of proving claims.
Rhode Island prohibited discrimination in employing persons between 45 and 65 years of age, and placed administration of the law in the labor department. Pennsylvania authorized its labor department to develop special counseling and placement services for older workers.
Occupational Safety
For the first time, the President’s biennial conference on occupational safety this year included participation by agricultural interests and women’s and religious groups.
In 16 States, 38 courses on safety training were given by Department representatives to over 700 State, labor, and management officials, and in 14 States 23 training courses were given to nearly 800 officials employed in
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Federal agencies. Two courses were conducted for some 40 union personnel, and 22 for stevedores and longshoremen. In response to persistent requests, 5 special training programs were given to heads of schools, institutions, and other agencies of 5 State governments. Courses were also given in 6 States which used a special industry technique to reduce injuries in their high-hazard industries.
To help the maritime industry improve its accident prevention programs, departmental safety engineers visited and discussed safety program problems with numerous management representatives of insurance and shipping companies and associations, covering 27 ports and 29 ship repair yards. Proposed minimum safety standards were drafted for stevedoring, and in part have been adopted by some of the big associations.
Visits to improve accident prevention programs were also made to 279 Federal agencies. And 4 new field safety councils were chartered by the Federal Safety Council.
Other progressive steps in occupational safety occurred in the development of safety codes and the publication of safety literature. Particularly noteworthy was the adoption of the “ informational method” of code writing for a new American safety standard code covering abrasive wheels.
Federal Workmen’s Compensation
The Federal Employees’ Compensation Act administered by the Department provides for workmen’s compensation benefits for civilian Federal employees injured in the performance of duty. In addition to this basic coverage of regular civilian Federal employees, there have been extensions to the act to include such diverse groups as employees of the government of the District of Columbia, commissioned officers of the Public Health Service, members of Reserve components of the Department of Defense, emergency relief employees, Federal student nurses, and certain employees injured or killed as a result of enemy action. Total coverage is estimated to be approximately 2,400,000 employees as of June 30, 1956. During the fiscal year ended June 30, 1956, nearly 93,000 injuries to Federal employees were reported under this law. Benefits (excluding war claims) paid during the year amounted to $49,168,696.
The Federal workmen’s compensation system, through the Longshoremen’s and Harbor Workers’ Compensation Act, also covers certain employees of private industry. Included under this coverage are employees of private employers in the District of Columbia, certain maritime workers throughout the Nation, certain workers on the Outer Continental Shelf, and employees of contractors at defense bases. Available information indicates that close to 1,000,000 workers are potential beneficiaries under this program. During the fiscal year ended June 30, 1956, approximately 100,961 new work injuries to such workers were reported. Disability and death payments in cases closed during the year amounted to $9,626,922.
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International Labor Activities
The Department’s international labor program has been making a significant contribution to the President’s objective of promoting “people to people” exchange. This has been done in many ways.
The technical assistance and exchange of persons programs which the Department operates for the International Cooperation Administration and the International Educational Exchange Service of the Department of State during the year afforded more than 1,000 key persons in labor affairs in other countries an opportunity to study our way of handling labor matters. This program has without question made a major contribution to the achievement of our national objectives. Our successful experience with these programs, and the willing cooperation we have received from the States and from American trade unions and management in carrying them on, has indicated that such exchanges should be a permanent and significant part of the technical assistance program of the United States Government.
Our labor attache program, which we have improved and strengthened during the year in cooperation with the Department of State, is another of our activities that reach below the normal surfaces of governmental contacts and help establish true people-to-people relationships. The reports from these attaches have been of great value to the Department, and we have placed increasing emphasis on providing the attaches and other foreign service personnel with the material on American labor and American methods which is so much in demand among people abroad.
The International Labor Organization represents one of the most important people-to-people forums in the world, because of the presence of labor and management as well as government. During the year its activities have gone forward despite the presence of the Soviet Union. The Organization was created in some measure as a democratic answer to the threat of communism after World War I, and has continued its historic task of helping to improve the conditions of working men and women throughout the world on a practical and technical basis. Our own viewpoint and our own experience have been effectively presented in the Organization during the year, and the detailed information on United States practices and the United States approach has been widely distributed to other countries in the extensive publications of the Organization. At the end of the year, at the annual International Labor Conference, the Organization took additional significant steps toward the adoption of an international standard aimed at the eradication of forced labor.
Conclusion
In review, fiscal 1956 has been a year of considerable accomplishment, regardless of the many things that still need to be done “ to foster, promote,, and develop the welfare of the wage earners of the United States.”
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Unquestionably the interest shown by Congress in the Department’s programs, and its willingness to allow increased appropriations for expansion of the Department’s services, have contributed materially to this success.
It is also evident that the Department’s programs have already shown substantial improvement in fiscal 1957, and it is expected that still further progress will be made in fiscal 1958.
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OFFICE OF THE SECRETARY
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OFFICE OF THE ADMINISTRATIVE ASSISTANT SECRETARY
The Administrative Assistant Secretary’s responsibilities for executive direction and administration of budgetary, fiscal, and general-management for the Department as a whole, including the library, continued.
A study was made of forms provided to the public by the Department for the purpose of recordkeeping for specific periods in conformance with laws or regulations administered by the Department. As a result it was found that although notice of specific dates appear in regulations which are made available to those concerned, the forms themselves did not indicate these periods. Arrangement was made to have known retention periods indicated on forms distributed for such basic recordkeeping when replenishment of existing supplies is made. Recommendation for further study was made to Bureaus having responsibility for enforcement of laws requiring all types of basic recordkeeping, to see if other relief within the spirit of the law was possible in relation to all recordkeeping requirements.
A staff member was made continuously responsible for keeping abreast of developments in the field of electronic data processing with a view toward consideration of the application of such techniques to the statistical, recordkeeping, and accounting functions which are key parts of many of the Department’s programs.
Management survey programs, under which the offices and bureaus of the Department undertook 11 self-analysis survey projects with active participation by Office of Budget and Management staff, were completed.
Employee suggestions in the Incentive Award Program increased 43-9 percent in 1956 over 1955. Closer coordination was effected between the incentive awards and employee training activities through material furnished supervisors who have responsibilities for both programs to promote recognition of the value and relationship between them. Incentive awards will be included as a subject in all new employee training sessions in Washington. A study of simplification of procedures related to awarding of outstanding awards is under consideration.
The Department library continues to place chief emphasis on its service to the personnel of the Department. Its use also by others outside the Department is extensive—1,515 persons came to the library to use its resources; loans to other libraries have increased greatly over the last few years. The library answered 14,521 reference questions, of which about 23 percent came from persons outside the Department. It circulated 48,142 books and periodicals, loaning 2,262 to other libraries.
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A total of 10,320 cubic feet of records was disposed of during the fiscal year.
A new relocation site for alert exercises and for emergency use in event of attack or need for total mobilization was established. Results of the 1956 test exercise were evaluated. Selection of relocation sites for field offices for similar emergency operations was initiated.
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OFFICE OF INFORMATION
Principal regular, routine functions of the Washington office are: The preparation and issuance of news releases, the preparation and display of exhibits, the review and clearance of all publications and reports, the preparation and issuance of departmental publications, relations with representatives of news agencies, and the output of information to 550 labor papers.
Over 30 exhibits were prepared, and the quality of presentation was improved. The office has planned 12 and completed 7 portable exhibits using interchangeable parts for the use of our information field offices. These have proved useful, particularly at meetings of small groups.
During the year the Office has published:
(1)	How the Department of Labor Serves the Worker, the Employer, the Public—a condensed statement in folder form (free).
(2)	The United States Department of Labor and What It Does—a brief descriptive pamphlet (free).
(3)	The Skilled Work Force—a simplified and illustrated booklet (20 cents).
(4)	Publications of the U. S. Department of Labor, 1948-55—a subject listing, to be revised annually, for use of students (free).
(5)	Facts and Services—a 4-page biweekly digest of developments of interest to labor leaders (free).
In preparation for publication early next year:
(1)	Suggested Research Projects in Labor Economics and Industrial Relations—a bulletin describing 42 proposals for consideration by colleges and research groups (free).
(2)	Important Events in American Labor History, 1778-1955 (free).
(3)	The United States Department of Labor Today—a popularly written illustrated booklet (65 cents).
(4)	The American Workers’ Fact Book—a 400-page popularly written compendium of information for workers ($1.50).
In an attempt to establish a continuing series of publications of major significance, commencing with the Fact Book, plans have been projected so far for the preparation of yearbooks on consumer expenditures, automation, and State labor legislation. Early planning of this type of publication is necessary because of the research and writing involved.
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OFFICE OF INTERNATIONAL LABOR AFFAIRS
During fiscal year 1956, the Office of International Labor Affairs, under the guidance and supervision of the Assistant Secretary of Labor for International Labor Affairs, continued its regular responsibilities for directing and coordinating the Department’s work in the field of international labor affairs.
The year’s total workload reflected substantial additional responsibility in comparison with the previous year, largely respecting the conduct of technical assistance training programs in the labor field. This increased workload was undertaken at the request of the International Cooperation Administration (ICA) of the Department of State. This action had the effect of consolidating all of the Government’s labor training programs in the Department of Labor.
The Assistant Secretary of Labor served as the United States Government delegate to the 39th International Labor Conference and to the 130th, 131st, and 132d meetings of the Governing Body of the International Labor Organization. Documentation and United States positions were prepared for these meetings as well as for several industry committee and technical meetings sponsored by the Organization and attended by official United States delegations.
The Office was actively involved in the work of the Interdepartmental Committee for Trade Agreements and the Committee for Reciprocity Information during the preparations for and conduct of tariff negotiations under the Trade Agreements Extension Act of 1955. Special efforts were made to take account of the problems of American labor surplus areas in considering United States tariff concessions and in obtaining tariff concessions from other countries. The Department also took part in the preparations for a number of meetings of the Economic and Social Council of the United Nations and its commissions.
Special attention was paid during the year to improvement in the administration of the labor attache program, and to the development of directories of labor organizations in foreign countries. These directories, which list in detail the international trade union federations, the labor organizations of each country and their leading officials and publications, are the first complete compilations of this kind. During the fiscal year, directories of European trade unions and of Communist labor organizations were published or in process. The diiectories have been useful to government agencies and have also been made available to United States trade unions engaged in the complex struggle to contain and reduce the strength of Communist forces in the labor movements of the free world.
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More and more, the Department is confronted with specific problems which require detailed analysis of the labor situation in specific areas of the world, and it has become increasingly apparent that the effectiveness of the Government’s programs in the international labor field could be improved by the devotion of additional staff time to labor problems on a regional basis.
The outstanding features of the Office’s operations during the year regarding technical cooperation and exchange of persons, the International Labor Organization, and the labor attache program are commented upon below in greater detail.
Technical Cooperation and Exchange of Persons
The Department’s technical cooperation and exchange-of-persons activities included the arrangement of labor programs in the United States for foreign nationals, recruiting of American specialists for foreign assignment, and the preparation of technical and exhibit materials. These services were performed mainly at the request of the International Cooperation Administration of the Department of State, but also included the arrangement of programs in the United States for foreign labor leaders and specialists coming under the Department of State’s International Educational Exchange Service.
The Department arranged programs for 768 foreign nationals who arrived during the year as well as continuing programs for 242 foreign nationals who were already in the country at the beginning of the year. Approximately 50 countries were represented in this group. The fields of study for fiscal year 1956 arrivals were distributed as follows: Trade unions and labor-management relations, 584; industrial training, 58; employment services, 28; industrial safety and labor law administration, 59; labor statistics, 30; women’s employment, 9.
Foreign nationals receiving training in the trade union and labor- management relations fields were handled directly by the Office of International Labor Affairs; visitors in other fields were handled by the appropriate technical bureaus of the Department in accordance with arrangements made in cooperation with the Office of International Labor Affairs.
The character of the programs conducted was the subject of continual review and improvement, especially with respect to visitors from the underdeveloped countries of the world, as more experience was gained with programs developed for visitors from these areas. A great deal of progress has been made in evaluating the training given. Much more work needs to be done, however, in evaluating and measuring the effects of the programs within the countries from which the visitors come.
A unique approach to technical assistance was instituted during the year in the programs for 103 French and Italian potential trade union leaders, as an outgrowth of observations and suggestions made respecting earlier visitor programs. During their 1-year stay, all participants received 4
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months of academic orientation at an American university. Following this, the participants were placed in industrial plants for 4 months of work experience and participation in labor-management relations. The remaining 4 months were devoted to intern programs with United States trade unions, where each participant had the opportunity to take part in and study the day-to-day activities and problems of organization, bargaining, research, education, etc.
The consolidation of the Government’s training programs for foreign labor and management within the Department of Labor, as reported in the Annual Report for 1955, has resulted in improved administration. Likewise, the Department’s having responsibility for the conduct of the special orientation program for foreign trade union visitors, conducted at St. John’s College at Annapolis, has made possible better coordination of its own training activity and that undertaken in the orientation program, which has developed into an outstanding feature of the program’s operation.
The cooperation of American trade unions and management has continued to be excellent. These voluntary participants have made heavy contributions of time and money to the program. To insure that the burden of these contributions does not fall too heavily upon the willing group of participants who have been a mainstay of the program’s operation thus far, the Office has undertaken special efforts to utilize the cooperation of local trade union groups and management who have not hitherto been involved in the program. In doing so, we have found gratifying willingness to assist the Government in its technical assistance efforts. In a great many of these instances, the program has truly established its merit as a two-way exchange, bringing to new American participants direct contacts with foreign workers and technicians in their own industries and occupations for the first time.
The Department, through the cooperation of the Office of International Labor Affairs and the technical bureaus, also shared its skills with other nations through the temporary assignment or release of some of its technicians to serve abroad in various capacities. Assistance of this nature involved the visit of a safety engineer to Mexico to help that country develop a safety congress, a labor statistician’s serving on a Committee of Experts on International Classification sponsored by the International Labor Organization, the return for a second visit of another labor statistician to El Salvador to assist that country’s Ministry of Labor in developing a general labor statistics program, the sending of two apprenticeship specialists, one to Chile and one to El Salvador, to help these countries establish industrial training programs, and finally, the loaning of an employment service specialist to Israel to assist in the development of a counseling program.
Work begun during the previous fiscal year by the Department’s technical bureaus on special research projects continued during the present year. These involved a series of handbooks on labor conditions in foreign countries, a series of brief factual summaries on labor-management relations in
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selected American industries, and a set of labor manuals covering various technical labor fields. The construction of a traveling industrial safety exhibit for presentation in Latin America was completed, and a second safety exhibit, to be shown in the Near East-Far East areas, was begun during the year.
The International Labor Organization
Against a background of serious dispute over the still unresolved question of the status of ‘' worker’ ’ and ‘ ‘ employer’ ’ representatives from Soviet bloc countries, the ILO continued its fact collection, research, and publication of information on labor conditions and standards, its technical assistance, its exchange of views by delegates to technical, industry, and general meetings, and its consideration of possible agreement on specific international labor standards. The disputes over the status of Soviet bloc worker and employer representatives occurred at the annual International Labor Conferences in June of 1955 and 1956.
While it is still too early to assess fully Soviet motivations in rejoining the International Labor Organization, it is clear after 2 years of observation that their presence in the Organization has had no effect on the content or program of the Organization’s activities. If there has been any effect at all, the Soviet’s rejoining seems to have provided delegates from the free world with another opportunity of expressing their vocal and consolidated opposition to Soviet goals and statements. Representatives from the entire free world are perhaps better equipped today than ever before to cope with Soviet tactics and arguments at international meetings, and have not been backward in doing so. The acclaim which has greeted some of the forthright statements of American delegates when they have replied to Soviet misstatements has been an effective demonstration of the free world’s position. As a result of this situation, delegates from the countries which the Communists are trying to woo, by such tactics as a revival of the “popular front’’ of the 1930’s, are present at debates in what is perhaps the world’s leading forum for showing up Communist claims respecting the goals and achievements of the "workers’ paradise.’’
The regular and basic work of the Organization continued, under the guidance of the Organization’s Governing Body, in which United States government, employer, and worker delegates played active roles, and on which the Soviet bloc has one government and no worker or employer votes, out of the total of 40.
During the year, the Organization made continued improvements in its statistical work, which comprises one of the most important bodies of information on wages, prices, and employment throughout the world. The Yearbook of Labor Statistics, for example, is a basic reference book of great use to many United States Government agencies and private organiz-tions. During the year, a major inquiry was begun to compare the extent of "social charges’’ or “fringe benefits’’ among various countries, in order
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to permit a better comparison of national wage relationships than has heretofore been possible.
The Organization’s major regular publications, the International Labor Review, and Industry and Labor, continued to carry a great many technical articles of high quality by experts of many nationalities. Its other technical works—its legislative series and occupational safety and health bulletins, as well as the many special reports—continue to be of great value to technicians and practicing officials, in providing a regular means for the interchange of technical experience.
The Organization’s industry committees provided active forums for the exchange of views on practical current problems: The Textiles Committee discussed productivity improvement and labor-management relations; the Committee on Work in Plantations discussed productivity and means of stabilizing employment and earnings; the Petroleum Committee discussed contract labor and human relations; the Coal Mines Committee discussed safety and recruitment and vocational training.
With respect to each of these matters, as well as many others which were under consideration by the Organization at its Governing Body meetings and at the annual conferences, the United States Government submitted detailed information setting forth our own experience and views, for reproduction by the Organization and distribution to the delegates of other lands. These submissions by the United States, which reflect the views of the interested agencies in the executive branch, and consultation with United States employers’ and workers’ organizations, regularly gain wide attention in other countries and are important for the understanding of United States views in later discussions at International Labor Organization meetings.
The annual conferences themselves, although they receive more publicity than the rest of the work of the Organization, are essentially a forum for the independent exchange of views by governments, workers, and employers, on basic labor standards. In more than 30 years, the annual conferences have reached a wide measure of agreement on many basic labor standards, and the expert technical judgment which has come out of these deliberations forms a useful reference source for countries considering revisions in their legislation and for the operation of the ILO’s program of technical assistance and advisory services to members.
In past years, when studies and analyses were needed as a basis for the establishment of basic standards, the major part of the Organization’s work was devoted to this phase of its activities. With much of this work done, and with current standards considered at ILO Conferences being to a large degree the modernization of standards first agreed to 20 or 30 years ago, the major emphasis in the Organization’s work is passing away from studies which relate to standard setting. Instead, more and more emphasis is being placed on practical assistance to governments which are trying to improve their standards, or the administration of their government labor operations, or to improve the skills or productivity of their workers so that an economic
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base can be provided for improved living and working conditions. The United States Government delegations have given strong support to this shift at every opportunity. An important phase of this new emphasis was launched during 1956, when the ILO, with the wholehearted support of the United States, and with the assistance of labor, management, and impartial experts from several countries, including our own, began to explore ways in which the Organization might be of greater service in the improvement of sound labor-management relations in those countries which need such improvement, especially in connection with the establishment of a proper climate for economic development.
The Labor Attache Program
During the year, the Department continued to cooperate with the Department of State in the overall management of the Foreign Service and in strengthening the corps of labor attaches in the Service.
The Departments of State, Labor, Commerce, and Agriculture—through their representatives on the Board of the Foreign Service—are responsible for advising the Secretary of State concerning the overall management of the Foreign Service enterprise. This responsibility, set forth in the Foreign Service Act of 1946, entails active participation by Department of Labor officials in several interagency committees and boards responsible for various aspects of Foreign Service administration, such as approval of new appointments and transfers of Foreign Service personnel, participation in the Foreign Service promotion boards, dismissal-for-cause panels, and board of examiners; and preparation of reporting instructions to be followed by the embassies and consulates abroad.
In addition, the Department has special responsibilities in regard to the Foreign Service labor attache program. In cooperation with the Department of State, it takes initiative in recruiting, training, instructing, and “ backstopping” the worldwide corps of 40 labor attaches and 55 Foreign Service labor reporting officers.
During the year, the Foreign Service labor program was strengthened particularly through increases in the number of trained labor reporting officers who were assigned to the American embassies and consulates overseas where there are no full-time labor attaches provided on the staffs. In many of the small Foreign Service posts abroad, it has not been feasible to assign full-time labor attaches and the job of keeping the Government agencies in Washington currently informed concerning significant foreign labor developments is done by career Foreign Service officers. In the past year, particular emphasis has been given by the Department of Labor to improving the worldwide coverage of labor through intensive training of these part-time labor reporting officers. To a large extent this has been possible through cooperative efforts of the Department of Labor and the Foreign Service Institute.
Another emphasis of the past year has been the improvement of the
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Washington “servicing” of the labor attaches and labor reporting officers overseas, and the development of closer day-to-day ties between the Department’s technical staff in Washington and the overseas labor officers. This has resulted in more effective work by the overseas officers in analyzing foreign labor developments and in explaining American labor developments to workers abroad. Regional conferences of labor officers have proved to be especially effective and are being planned as a routine part of operations.
The contact and reporting work of the Foreign Service labor officers overseas provide the facts and analysis for all of the Government s international labor activities. During the past fiscal year, the reports have provided the indispensable raw material for the preparation of badly needed directories of the principal labor organizations in Europe, the Western Hemisphere, and Asia; assuring that the programs of foreign visitors will make their maximum contribution toward the achievement of United States foreign policy objectives in each country abroad; accurately assessing foreign labor factors in connection with tariff negotiations; effective participation by the United States in the International Labor Organization; and the Department’s publication programs designed to keep the public and interested Government agencies informed concerning foreign labor developments.
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OFFICE OF PERSONNEL ADMINISTRATION
Continuing and expanding the training program begun in the preceding year, the Department in 1956 launched a program of interbureau field supervisory conferences, provided training in methods of correspondence improvement, and established a program of orientation for new employees both in Washington and in the field.
Extension of coverage of the Fair Labor Standards Act required intensified activity to establish and fill nearly 500 positions of wage-hour investigators and related positions. The Office of Personnel Administration successfully installed a new program of recruiting stenographic and typing employees outside Washington.
In keeping with the Secretary’s interest in recruiting and developing promising young people for future leadership positions in the Department, the Office developed a career staffing plan based upon recruitment from the new Federal Service Entrance Examination of the Civil Service Commission. The Office also gave material assistance to the Commission in planning the examination and in publicizing it at colleges and universities by personal visits to the campuses and by discussions with college officials.
As the examining process progressed, the Department furnished several interviewers to assist the Commission in giving oral examinations to those applicants who chose the management intern option. A booklet on career opportunities in the Labor Department was prepared and sent to each candidate who passed the management intern tests. Upon completion of the tests, recruiters from the Department visited colleges and universities in various parts of the country to contact applicants who qualified. As a result of these visits and supporting work, 20 junior management interns were recruited for appointment in the Department.
In the meantime, a comprehensive management intern training program has been prepared, to facilitate and accelerate the orientation and development of the interns for responsible assignments in the work of the Department. This program will operate under a director of management intern training in the Office of Personnel Administration.
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OFFICE OF THE SOLICITOR
The Solicitor of Labor is the chief legal officer of the Department of Labor. All of the Department’s legal activities are under his supervision and control. The activities of the Office, therefore, cover functions carried on by all the operating units of the Department. In addition, the Office itself performs 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. The Office is organized functionally into six divisions, which in turn consist each of two or more branches.
Division of Legislation, Bureau Service, and Trial Examining
The most significant work of this Division is that involving legislation. This work includes the preparation and drafting of bills, together with explanatory and background material, to carry out the Department’s legislative program. The Office of the Solicitor, through this Division, also coordinates and sets forth the Department’s position on various other legislative proposals in the form of reports to Congress and to the Bureau of the Budget. The number of such legislative reports prepared this year totaled 406. The number of drafts of bills, analyses, and other legislative papers prepared in this year reached an all-time high figure of 1,275, reflecting the most extensive legislative program ever presented by the Department.
Among the more important recommendations of the Department for legislation this year were those (1) to amend the Longshoremen’s and Harbor Workers’ Act to increase compensation benefits and otherwise to improve the act, (2) to revise and improve the “Eight Hour Laws’’ relating to hours of work of laborers and mechanics employed by the Federal Government on certain Federal contracts, (3) to provide financial aid to States for improving industrial safety, (4) to provide safety in interstate transportation for migrant farm workers, (5) to provide nonoccupational sickness and disability insurance in the District of Columbia, (6) to insure the application of the principle of equal pay for equal work regardless of sex, and (7) to require the filing and disclosure of information with regard to employee welfare and pension plans.
Through this Division, the Office of the Solicitor performed various legal services for the bureaus and offices of the Department, including the drafting
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and reviewing, preparatory to publication, of all proposed administrative orders, regulations, and instructions. The Division also prepared 2,699 letters for the signature of the Secretary or Solicitor. In addition, 771 legal opinions, analyses, and memoranda for the bureaus and offices were prepared.
The hearing examiners of the Trial Examining Branch filed 19 decisions during fiscal 1956. Eleven of the twenty-nine complaints issued under section 5 of the Walsh-Healey Public Contracts Act involved violations of of the act’s provisions relating to the health and safety of employees who work on goods destined for the Government. In addition, the examiners presided over 3 wage order proceedings under the Walsh-Healey Public Contracts Act. They also presided at proceedings under the Fair Labor Standards Act to determine whether the employment of children in given occupations constituted oppressive child labor because of the working conditions. A hearing was also conducted to determine whether the California Department of Employment Security was administering its unemployment insurance programs consistent with required Federal standards.
The Special Services Section of this Division of the Office of the Solicitor serves as the counsel and legal adviser to the Employees’ Compensation Appeals Board. It prepares, after receiving instructions from the members of the Board, many of the decisions of the Board and performs other research projects requested by the Board.
Division of Employee Benefits
This Division is composed of two branches, the Employees’ Compensation Branch and the Employment Security Branch. Through the Branch of Employees’ Compensation, the Solicitor’s Office renders legal service to the Bureau of Employees’ Compensation in the administration of the workmen’s compensation programs covering (1) civil officers and employees of the United States and the District of Columbia, and (2) private employees within the regulatory jurisdiction of the Federal Government.
Legal assistance is furnished to the Bureau in connection with the adjudication of claims filed by Federal and District of Columbia employees or their survivors under the Federal Employees’ Compensation Act. The Director of the Bureau is represented by the Solicitor’s Office when compensation awards are appealed to the Employees’ Compensation Appeals Board, an independent, quasi-judicial body whose decisions are final, situated in the Department of Labor.
In addition to legal advice furnished to the Bureau in fiscal 1956 through conferences and opinions, the Solicitor’s Office defended approximately 446 decisions of the Director in proceedings before the Appeals Board; 144 of which required oral argument.
Workmen’s compensation provisions concerning private employment, on which the Solicitor’s Office provides legal services to the Bureau, are
407851—57----4
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contained in the Longshoremen’s and Harbor Workers’ Compensation Act, covering longshoremen, ship repairmen, and related workers employed on the navigable waters of the United States; the Defense Base Act, covering employees at overseas defense and military areas of the United States and those working on Federal public works contracts outside of the United States; and section 4 (c) of the Outer Continental Shelf Lands Act, covering employees engaged in work relating to natural resource development on the Outer Continental Shelf.
Authority to adjudicate claims under these acts is vested by law in deputy commissioners who are appointed by the Secretary of Labor to preside over the 13 compensation districts into which the United States and the Territories are divided. The awards of the deputy commissioners under these acts are generally subject to judicial review in the United States district courts, but only on points of law. Among other types of assistance which the Solicitor’s Office furnished the Bureau during fiscal 1956 was the defense of such awards in 44 cases in the United States district courts and in 5 cases taken to the United States courts of appeals.
Under the supervision of the Solicitor’s Office, an active program is pursued to obtain reimbursement of compensation paid by the Bureau to Federal employees or their survivors under the Federal Compensation Act in the cases where third parties are responsible for the injury compensated. In fiscal 1956, the sum of $2,403,913-54 was collected from third-party wrongdoers in a total of 982 cases. This was an increase of approximately $334,000 over the amount recovered in fiscal 1955- After deducting the expenses of litigation, a net recovery of $1,840,238.76 for fiscal 1956 was made available to the Federal Government to be applied as an offset to compensation payments made under the Federal Employees’ Compensation Act.
Through the Employment Security Branch of this Division, the Office of the Solicitor renders legal services to the Department’s Bureau of Employment Security and other interested parties in the fields of unemployment compensation, migratory labor, and veterans’ readjustment assistance.
During fiscal 1956, the workload of the Branch was increased by the recent amendments of the Federal Unemployment Tax Act and the Social Security Act. These amendments required interpretation of their provisions and effects, and also stimulated amendment of State unemployment insurance laws. In the latter connection, the Branch proposed amendments when requested, and reviewed proposed amendments submitted by various States for that purpose.
A hearing to assist the Secretary in making a determination under section 3304 (c) of the Internal Revenue Code was the occasion of active participation by the Branch. The result of this hearing was a decision by the Secretary that the California unemployment compensation plan is in substantial compliance with the Internal Revenue Code.
The following aspects of unemployment compensation were considered by the Branch and suggestions and recommendations were given to increase the effectiveness of the individual programs: Unemployment compensation
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for Federal employees, experience rating questions arising out of plant shut-downs due to acts of God or other disasters, coverage for workers in Puerto Rico, supplemental benefit plans, and judicial review of certain determinations by the Secretary.
In the area of migrant labor, the Branch counseled the President’s Committee on Migratory Labor in recommending to the States regulations to govern the interstate transportation of migratory workers. In addition, an educational program was carried on to inform employers and prospective employers of the benefits and obligations connected with the employment of migratory workers.
Services were also performed in connection with a migratory labor agreement with Mexico, the administration of the Refugee Relief Act of 1953, Operation Alert 1956, and the International Labor Organization Convention on Forced Labor.
Division of Appellate Litigation
This Division performs the duties of the Solicitor’s Office in connection with appeals taken to the United States Courts of Appeals and to the Supreme Court of the United States in cases arising under the Fair Labor Standards Act and certain other statutes administered by the Department of Labor. This work is of great national importance because the effective enforcement of Federal labor laws which regulate the wages, hours of work, and other conditions of employment of millions of workers throughout the country depends in large measure upon acceptance of the Department’s interpretative positions by the Federal Courts of Appeals and by the Supreme Court.
During fiscal 1956, a total of 47 briefs was filed in the courts of appeals and the Supreme Court. Of these, 44 were in cases instituted by or against the Secretary of Labor. The other 3 briefs were filed as amicus curiae in suits brought by employees. A total of 34 decisions or final orders was handed down, 12 by the Supreme Court and 22 by the Courts of Appeals.
Fiscal 1956 saw exceptional success for the Department in cases reaching the Supreme Court. In a year which brought the largest number of cases and many of the most important questions of any year during the past nine, the results were 100 percent favorable to the Department’s interpretations of the two major Federal wage and hour laws, the Fair Labor Standards Act and the Walsh-Healey Public Contracts Act. Further, during fiscal years 1955 and 1956, the 19 petitions for Supreme Court review of cases in which the Secretary of Labor was a party or participated were all disposed of in support of the Department’s position. The net result is that the Court reversed every lower court decision restricting the applicability of these statutes and left in effect (by denying review) every appellate court decision sustaining their applicability.
Twelve of these cases were decided during fiscal 1956. The most important related to three cases brought by cotton, textile, and woolen mills
in an effort to have declared invalid the Secretary’s minimum wage determinations under the Walsh-Healey Public Contracts Act. (Alabama Mills v. Mitchell, Covington Mills v. Mitchell, consolidated, certiorari denied 350 U. S. 1002; Allendale Co. v. Mitchell, certiorari denied, 351 U. S. 909.)
These were the first cases brought against the Secretary under the Fulbright amendment providing for judicial review of the Secretary’s wage determinations which was enacted by Congress 4 years ago. While raising a variety of issues, the cases centered on the question of whether national competition for Government contracts justifies a national minimum wage standard for an industry, found essential by the Department to accomplish the basic purposes of the Public Contracts Act, or whether the “locality” language of the statute requires a separate minimum wage standard for each small geographic area. The Supreme Court’s refusal to review the decisions of the Court of Appeals of the District of Columbia, upholding the Secretary’s authority to prescribe uniform industrywide standards, left those decisions in effect as final and authoritative.
The other Supreme Court cases involved important issues relating to the interpretation of the Fair Labor Standards Act. Notably, Mitchell v. Budd Tobacco Co., Mitchell v. K7«g Edward Tobacco Co., Mitchell v. AQy Tobacco Co., consolidated at 350 U. S. 473, unanimously upheld the Department’s interpretations of and regulations under the exemptions for agriculture and for operations on agricultural commodities. The most significant and far-reaching ruling in these cases was the one upholding the validity of the definition of “area of production” (in particular the so-called “population test” of the definition) which limits the exemptions in section 13 (a) (10) and section 7 (c) for certain operations on agricultural commodities, thereby enabling effective enforcement for the first time where operations are not performed within the area of production as defined by the Administrator.
In two cases, Steiner v. Mitchell, 350 U. S. 247, and Mitchell v. King Packing Co., 350 U. S. 260, the Supreme Court, again unanimously, sustained the Department’s interpretation of the meaning of the Portal-to-Portal Act of 1947. It ruled that section 4 (a) (2) of that act does not relieve employers of obligations under the Fair Labor Standards Act with respect to time spent by workers, outside of their regular shifts, in activities which are an integral and indispensable part of their principal work. Specifically the Court held that clothes changing and showering necessitated by the hazardous conditions in a chemical battery plant (Steiner) and knife sharpening by butchers (King), even though performed before or after the scheduled work shift, are not “preliminary” or “postliminary” activities within the meaning of the section; rather they are principal activities for which employees must be compensated in accordance with the requirements of the Fair Labor Standards Act.
In so holding, the Court differentiated between the provisions of the Portal-to-Portal Act relating to unexpected liabilities accumulated at the
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time of its enactment and the provisions covering future claims for wages based on activities performed before or after the regular work shift.
Tn another unanimous decision, Mitchell v. Myrtle Grove Packing Co., 350 U. S. 891, the Court sustained the Department’s interpretation of the fishery exemption in section 13 (a) (5) of the Fair Labor Standards Act, as related to canneries. It ruled that the employees engaged in shucking oysters or picking shrimp and crabs preparatory to their canning are engaged in canning, which is not exempt from the minimum wage benefits of the act. This decision resolved a conflict in the decisions of two Courts of Appeals; the Court of Appeals for the Fifth Circuit had held that the preparatory activities were exempt as “processing (other than canning)” while the Fourth Circuit had held that they were not exempt. The decision has far-reaching importance in the shellfish canning industry since shuckers and pickers comprise from 75 percent to 90 percent of the production workers in the canneries.
Among the appellate court decisions which the Supreme Court refused to review was a highly important decision of the Eighth Circuit (Mitchell v. Brown Engineering Co., certiorari denied, 350 U. S. 875) which unanimously sustained the Department’s interpretation of the effect of the Supreme Court’s decision last year in Mitchell v. Vollmer, 349 U. S. 427- The Eighth Circuit ruled that, under the Vollmer decision, employees of a consulting engineer, engaged in the preparation of preliminary plans and drawings of various kinds, some of which were in connection with the repair, alteration, and improvement of interstate instrumentalities and interstate production facilities, are within the coverage of the Fair Labor Standards Act. This decision not only extends the principles of the Vollmer case (which involved a waterway) to highways and other interstate facilities, but also extends those principles to preparatory activities as well as to the actual construction work.
Another appellate court decision which remained in effect after the denial of Supreme Court review was that of the First Circuit which held that the Federal wage and hour law does not preclude employees’ rights under more favorable provisions of a State law (Eastern Sugar Associates v. Pena, certiorari denied, 350 U. S. 900).
The remaining decision denied review by the Supreme Court sustained the Department’s position that the de minimis doctrine cannot be applied to deprive employees of the benefits of the Federal law where they work indiscriminately on goods some of which, however small in amount, regularly move in interstate commerce (Tilbury v. Mitchell, certiorari denied, 350 U. S. 839).
Division of Wage Determinations
Through the Branch of Wage Determinations of this Division, the Office of the Solicitor predetermines prevailing wage rates to be paid on Federal construction contracts and on other construction financed or assisted by the
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Federal Government. This function was delegated to the Solicitor by the Secretary of Labor under the Davis-Bacon Act and similar statutes. An all-time high of 22,133 such wage determinations were issued in 1956.
The collection of wage data by the Branch was stepped up in line with expanded construction activity. Arrangements were made for submission of data by employee and employer organizations and reports were ordered from a private reporting system which serves most of the States. These factors have more than doubled the outgoing correspondence of this Branch from 9,537 pieces in 1954 to 23,689 in 1956.
The Division’s Branch of Coordination and Enforcement administers the functions placed in the Secretary of Labor by Reorganization Plan No. 14 of 1950 to achieve coordination of enforcement of the wage determination provisions of these laws. During fiscal 1956, the Branch received 625 new enforcement cases. In cases involving flagrant violations, action is taken to have the Comptroller General place the contractors concerned on the list of persons ineligible to receive Government contracts for 3 years. Thirty-six contractors were listed this year. In addition, 18 more cases await action in the Comptroller General’s Office. (In the 16 years prior to Reorganization Plan No. 14, only 4 contractors were placed on the ineligible list.)
The Branch conducted an educational program to acquaint contracting agencies, contractors, and employees of their obligations, rights, and duties under labor standards provisions. Conferences were held with contracting agencies and investigations were undertaken jointly with their investigators to assist the agencies most effectively to comply with their obligation to enforce labor standards.
A Construction Workers Guide which informs construction workers of their rights under various labor laws was prepared and published. Its successful reception has led to plans for publication of a similar booklet for contractors.
The requests for interpretations and the interpretations issued by the Division in the past fiscal year, both oral and written, have increased tremendously. Advising a contractor concerning labor standards requirements is far preferable (though less spectacular) than discovering him in violation, the latter course resulting in problems of restitution to workers and possible sanctions against the contractor.
Division of Trial Litigation and Wage and Hour and Miscellaneous Interpretations
This Division carries out the Solicitor’s litigation and allied responsibilities in enforcing the Fair Labor Standards Act and the Walsh-Healey Public Contracts Act.
A total of 719 actions were brought under the Solicitor’s supervision in the United States district courts and in administrative proceedings to enforce these acts in fiscal 1956. The increased minimum wage of $1 an
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hour, which went into effect March 1, 1956, accounts in part for the 93-case increase over the total for fiscal 1955- Of the total actions brought, 551 were civil actions, compared with 521 civil actions in fiscal 1955- Back wages in the amount of $269,289.92 were received by employees as a result of voluntary payments by employers in these cases. As in former years, wage restitution was also accomplished without court action through cooperation of employers in restoring wages withheld in violation of the minimum wage and overtime requirements of these acts.
It is noteworthy that special civil actions by the Secretary in behalf of employees under section 16 (c) of the Fair Labor Standards Act increased from 35 in fiscal 1955 to 59 in fiscal 1956 and that the total recovery in these cases, which was $17,462.73 in fiscal 1955, increased to $78,434.13 in fiscal 1956.
One hundred and eleven criminal actions were brought in cases of willful Fair Labor Standards Act violations, as compared with 71 such actions in fiscal 1955. Ninety-three violators were convicted, 1 acquitted, 7 cases were not grossed and 10 criminal cases were still pending at the end of the current fiscal year. Fines imposed in these cases totalled $94,632.00 and wage restitutions ordered or agreed to aggregated $153,377-96.
The Office of the Solicitor was called upon for approximately 9,000 opinions during the year. These opinions for the most part related to the Fair Labor Standards Act and the Walsh-Healey Public Contracts Act.
During fiscal 1956, complaints of violations of labor standards under the Walsh-Healey Public Contracts Act were issued in 29 cases, as compared with 20 in fiscal year 1955, and 24 hearings resulted. In line with the policy of vigorous enforcement of all the standards of this act, complaints involving violations of the safety and health provisions of the act were issued in 11 cases.
Legal advice was also given to veterans, employers, and other interested parties in connection with the reinstatement of servicemen in their former employment after military service, in accordance with the provisions of the Universal Military Training and Service Act and related earlier statutes. In fiscal 1956, opinions were prepared on 1,516 various points of law involving veterans’ reinstatement. As a result of decentralization of opinions functions to the regional attorneys, substantial increase has resulted in oral opinions by telephone and in conference with regional representatives of the Bureau of Veterans’ Reemployment Rights in fiscal 1956. In addition, memorandums from the regional offices on 1,426 points of law were reviewed—an increase of more than 70 percent over fiscal year 1955.
During the current fiscal year, 108 veterans’ reemployment rights files were analyzed and submitted to the Department of Justice with recommendations for litigation. Other miscellaneous work performed in the veterans’ reemployment rights area included furnishing assistance to United States attorneys, regional attorneys, and private counsel for veterans in individual litigation cases.
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Division of Administrative Legal Services
The Public Contracts Act wage determination program was accelerated by favorable rulings of the courts, upholding the Secretary of Labor’s interpretation of the scope of wage orders under the Walsh-Healey Public Contracts Act, and the increase in the Fair Labor Standards Act minimum wage. This Division, which provides legal services in departmental administrative actions, provided services in the issuance of 31 minimum wage determinations under section 1 (b) of the Public Contracts Act for the following industries: Bituminous coal, office machines, photographic and blueprinting equipment and supply, envelope, and paper and pulp.
Aside from wage orders actually issued, the Division participated in hearings and other activities directed toward determination of the prevailing minimum wage for 43 industries, including the electric lamp industry, the battery industry, and the scientific, industrial, and laboratory instrument industry.
During the fiscal year 1956, legal services were provided in administrative actions including, among others, 26 formal and informal public hearings in various proceedings under the Fair Labor Standards Act, wage orders for 17 industries in Puerto Rico and all industries in the Virgin Islands, and 79 amendments to the Code of Federal Regulations. These amendments to the Code included 155 wage orders for Puerto Rico and the Virgin Islands, regulations providing for the employment of handicapped workers, and interpretative bulletins prescribing (1) the methods of determining ‘ ‘ hours worked’ ’ and (2) application of the Fair Labor Standards Act agricultural exemption.
One of the more significant amendments to the Code involved complete revision of the regulations applicable to industry committees. This revision was necessitated by the Fair Labor Standards Amendments of 1955 which substantially changed the procedures for the issuance of wage orders for Puerto Rico and the Virgin Islands by requiring the industry committee to hold the type of hearing contemplated by the Supreme Court in Opp Cotton Mills v. Administrator, 312 U. S. 126.
The Office of the Solicitor through the International Labor Affairs Branch of this Division furnished legal advice and assistance on all subjects of concern to the Department in the field of international labor activities, and cooperated with other executive departments in the formulation of advice for the guidance of United States delegations to international meetings on labor subjects.
During fiscal 1956, great attention was focused on the efforts of the free world to bring about the abolition of slave labor practices found to dominate the economy in the Communist-controlled countries. The Solicitor of Labor served as legal adviser to the United States delegation and was instrumental in blocking Communist efforts to defeat or water down the proposals of the democracies to rid the world of forced or compulsory labor and its odious products.
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BUREAU OF APPRENTICESHIP
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BUREAU OF APPRENTICESHIP
The objective of the national apprenticeship program is to stimulate and assist industry in developing and improving the skilled labor force under standards that safeguard the worker’s welfare.
In discharging this responsibility, the Bureau performs two major functions: It encourages the establishment of sound apprenticeship programs for the development of skilled workers; and provides technical assistance in setting up such programs.
In the performance of these functions, the Bureau is guided by the Federal Committee on Apprenticeship, the membership of which is comprised of leaders in management, labor, and vocational education.
Through its field staff, with offices in every State, the District of Columbia, and the Territories of Alaska and Hawaii, the Bureau works with local employers and employees in developing apprenticeship and allied training programs designed to meet specific training needs. It also works closely with State apprenticeship agencies, trade, and industrial educational institutions.
During fiscal year 1956, the number of registered apprentices employed in the United States increased sharply. A total of approximately 180,000 apprentices were in training in July 1956, in programs approved by State apprenticeship agencies or the Bureau of Apprenticeship. This figure represents an increase of about 17,000 over the total in training a year earlier.
Despite the progress that has been made, the number of registered apprentices, together with others not registered with either the Bureau of Apprenticeship or State apprenticeship agencies, is inadequate to meet even current needs. The level of our present military expenditures, coupled with our increasing standard of living, places emphasis on skills that require much greater expansion in our skilled labor force.
National Industry Promotion
An “approach plan” has been instituted by which all available information on an industry, company, or union is assembled and distributed to the field staff with instructions and suggestions for its utilization. One completed approach plan has been released to the field, for the American Federation of Technical Engineers, AFL-CIO.
A large number of trade associations and international unions with headquarters in Washington, New York, and Chicago had heretofore not been
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contacted or had been given little attention. It has been a major project to contact and survey these groups for potential apprenticeship opportunities. Efforts thus far in Washington and Chicago have been successful. The project will be pushed in the ensuing year.
Ten additional railroads have registered programs with the Bureau of Apprenticeship: Missouri Pacific; Pittsburgh & Lake Erie; Nashville, Chattanooga & St. Louis; Atlanta Joint Terminal; Atlanta & West Point & Western; Georgia Railroad; Elgin, Joliet & Eastern; Gulf, Mobile & Ohio; Terminal Railroad Association of St. Louis; and Clinchfield Railroad.
Twenty-two general conferences in the railroad industry have been attended by the railroad specialists, and a number of these give promise of having apprenticeship programs set up within the coming months.
Plans are being formulated for a national railroad apprenticeship conference.
Ten large corporations having plants in many States have developed training programs during the last year. These include such companies as the Aluminum Co. of America, National Gypsum, Colorado Fuel & Iron, and the American Can Co., which now has registered apprenticeship programs in its 57 plants.
A special committee from foundry management met with the staff of the Bureau of Apprenticeship several times to develop a survey to determine the kinds and amount of training needed in the industry. The committee established its own agenda and made its own decisions. Bureau personnel provided technical assistance.
The part of the survey dealing with mechanized foundries has been completed. The part covering job foundries will be completed during the fall. The committee has agreed that after the completion of the survey, it will take steps to establish a program, with the necessary staff implementation, to develop the needed training programs in the industry.
Special attention was given to the paper and pulp industry. During the reporting period, the following large paper companies established apprenticeship programs: Great Northern Paper Co., Fox River Valley Paper Co., West Virginia Pulp & Paper Co., and St. Regis Paper Co.
Work done at Ponemah Mills, Taftville, Conn., will serve as a guide for promotional work in the textile industry.
National standards were approved for the National Tool and Die Manufacturers Association, some of whose shops already have qualified training programs. Effort will now be made to register all shops of the association which have facilities for training tool and die makers.
The 14-man joint committee of the American Newspaper Publishers Association and the International Printing Pressmen and Assistants Union developed and registered standards for pressmen. These standards will serve as a guide for local apprenticeship committees in establishing and operating apprenticeship programs designed to develop efficient and versatile craftsmen in the newspaper business.
56
Representatives of the Bureau have counseled with representatives of the International Typographical Union regarding the development of the new training center at their international headquarters. This center has been established to train not only apprentices but also journeymen in modem methods being introduced into the composing room.
Activities in the building and construction industry during the past fiscal year have covered four principal categories: Establishment of joint management-labor training committees, registration of apprenticeship standards, revision and improvement of apprenticeship standards, and journeymen trade extension training.
National joint management-labor apprenticeship committees were established in the trades of lather and of glazier and glass worker. National apprenticeship standards were completed and registered by both of these groups.
Many national organizations have recognized the need and importance of educational and training departments. Among those with such departments and full-time training coordinators at the end of the fiscal year were: United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry; National Joint Apprenticeship and Training Committee for the Electrical Industry; Structural Clay Products Institute Mason Relations Committee; International Association of Bridge, Structural, and Ornamental Iron Workers; Brotherhood of Painters, Decorators, and Paperhangers of America; Joint Apprenticeship Committee of the National Automatic Sprinkler and Fire Control Association and the Plumbers and Pipe Fitters Local 669; International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers; International Typographical Union; National Joint Paperhanger Training Committee; and the International Printing Pressmen and Assistants’ Union.
Several national joint management-labor apprenticeship committees revised their apprenticeship standards, includingthebricklayers, carpenters, plasterers, plumbers and pipefitters, roofers, and cement masons.
Revisions in the apprenticeship programs were made, primarily, to meet material and technological changes within the trades or industries. In several instances, action was taken with respect to national registration of all apprentices within the trades. Definite action in this respect was taken by the bricklayers and the sprinkler fitters, and the cement finishers and plasterers are considering such procedure.
In the field of journeyman trade extension training, there has been noticeable activity. The National Management-Labor Electrical Training Committee continues its activities in this area. The National Management-Labor Pipe Trades Committee has expanded its activity both in apprenticeship and journeymen training. The National Management-Labor Committee in the Painting and Decorating Industry has established a special committee for the promotion of journeyman training in the wallpaper industry. With the program completed and a full-time coordinator ap
57
pointed, the plan is now being placed in operation throughout the country.
Many trade groups have given serious consideration to ways and means of financing their training programs, both on national and local levels. At present, it appears that the procedure of establishing an educational fund, by means of a small contribution for each man-hour worked, is the most practical.
Among the activities being highlighted at present is assistance to the operating engineers and road construction contractors in the formulation of apprenticeship and other types of training programs to meet the greatly expanded road construction program.
Apprenticeship Conferences
A joint conference of State apprenticeship agencies and the Bureau of Apprenticeship was held in Washington. Twenty States, Puerto Rico, and the District of Columbia were represented. The meeting served to strengthen relationships and to produce better understanding between State and Federal apprenticeship staffs.
Three other multi-State apprenticeship conferences were held during the year: The Eastern seaboard apprenticeship conference at Swampscott, Mass.; the first national skilled manpower conference at Old Point Comfort, Va.; and the Southern States apprenticeship conference at Biloxi, Miss. Each of these meetings was attended by several hundred persons, including management and labor leaders, representatives of vocational education, civic and veterans’ organizations, and Federal and State apprenticeship agencies. These conferences served to bring about a better understanding of the objectives of the national apprenticeship program, and to stimulate interest in it.
Staff Services
Field Operations
Technical assistance was given employers and unions in developing and establishing apprenticeship and journeyman improvement programs, and consultant services were given to national joint apprenticeship committees in the development and revision of their standards.
New working agreements between the Bureau of Apprenticeship and State apprenticeship agencies have been completed, thus strengthening their coopeiative relationships.
The Division arranged for and participated in 12 regional tiaining conferences conducted for the technical improvement of the field staff. Bureau objectives, programs, policies, and staffing were discussed, and individual training given to personnel in conference leadership and techniques of industrial training.
58
A gradual growth in numbers of journeyman and supervisory training programs has been achieved. A number of national JAC’s have uiged local JAC’s to adopt training programs to provide an opportunity for journeymen to meet new demands arising out of technological change.
Considerable publicity was developed throughout the country in local newspapers and labor press concerning apprenticeship completion ceremonies. Ceremonies honoring completing apprentices ranged from relatively small public acknowledgments to banquets attended by hundreds of people.
More than 20 ceremonies a month at which more than 5,500 apprentices were publicly awarded certificates of completion were arranged. These occasions were witnessed by more than 30,000 people. Speakers included United States Senators and Representatives, State governors, presidents and vice presidents of international unions, corporation presidents, commissioners of labor, educational representatives, Bureau officials, and many others.
Technical Services
During the year, four Atomic Energy Commission contractor-operated establishments were contacted to further a study to determine the standards of performance and additional skills necessary in the application of atomic energy to peaceful uses. A series of releases was prepared for the field staff for their information and guidance in dealing with requests for information on atomic energy. These releases included a conference outline for the general education and training of the work force. The Technical Services Division furnished one representative to the departmental atomic energy study group to review the entire atomic energy program and determine departmental interest. A paper on “Post-Attack Radioactive Contamination” was prepared for the Secretary’s Committee on Peaceful Uses of Atomic Energy. It related to the departmental interest in reactivating bombed-out areas and the location of relocation centers of the various regional offices throughout the country.
The National Association of Manufacturers’ educational director was given assistance in revising NAM’s national apprenticeship program for outstanding apprentices in the metal trades.
One of the officials of the Bureau completed the 10-month resident session at the Industrial College of the Armed Forces. His term paper, “The Skilled Workers Sector of the Mobilization Base,” was among several chosen for reproduction and distribution by the college. Several field representatives have enrolled in the correspondence section of the Industrial College, and 15 completed the field sessions during the year. Tentative plans were drafted with the headquarters office of the construction battalion Seabees of the Department of the Navy to arrange for apprentices engaged in the building trades to continue their training in the military services of the Seabees after being drafted. This would be an advantage both to the Seabees and the apprentice, as his training would continue uninterrupted.
59
On a number of occasions, material on electronics has been supplied to the field for the training of journeymen and apprentices. The armed services have been helpful in supplying the latest material on electronics, which has been used in training personnel.
A release on trends in shipbuilding and one on activities in the petroleum industry were sent to the field for promoting training in these industries.
Review and Registration
During the year, 1,894 company and area-wide programs of apprenticeship were reviewed prior to their registration with State apprenticeship councils or the Bureau of Apprenticeship.
A new national system of apprentice registration was inaugurated in cooperation with the Bricklayers, Masons, and Plasterers International Union. National registration service for apprentice members of the United Association of Plumbers and Pipe Fitters employed by contractors of the National Automatic Sprinklerfitters and Fire Control Association was extended and perfected. Assistance was given the national director of the Apprenticeship and Training Committee of the Electrical Industry in connection with proposals to study methods of determining apprentice training needs at the local level.
Continued progress was made in assembling and cataloging examples of apprentice training schedules in various trades and occupations for use in answering inquiries from State and Federal apprenticeship staffs and inquiries from employees, unions, and other organizations.
Special activities included planning and conducting a conference of Federal contracting agencies, jointly with the Solicitor’s Office, to gain better understanding of apprenticeship practices in relation to regulations affecting employment on Federal and federally assisted projects. Following this conference, a circular was jointly prepared covering the regulations, and more than 5,000 copies were distributed to labor unions and contractors’ associations.
Conferences also were held with Wage and Hour officials in the preparation of their revised regulations affecting apprentices under the new $1 minimum wage, and in connection with a more flexible interpretation of overtime regulations affecting apprentices attending related instruction.
The division cooperated in the preparation of a recommended list of occupations for screening the Armed Forces Ready Reserve, and conferred with Veterans’ Administration officials in development of an interpretative bulletin concerning schedules of work processes in the apprentice training programs under Public Law 550.
Research and Statistics
To determine the extent to which apprentice training has been helpful, the Bureau began a study in fiscal year 1956 of the careers of a sample group of persons who completed apprenticeships in 1950. Each of the former
60
apprentices included in the study has been asked a series of questions concerning his apprenticeship and the types of jobs he has held since the completion of his tiaining. The former appientices were also asked to evalute the quality of instructions they received on the job and in related classes.
To study the need for developing additional skills in various industries and to determine the extent to which training needs are currently being met, the Bureau is conducting a series of research studies. At the request of the foundry industry, it made a study of the impact of mechanization on manpower requirements and training needs which revealed that the mechanized foundries expect an increase in the need for patternmakers, maintenance mechanics, and technicians by 1960. Slight increases in some other foundry occupations, such as molding and coremaking, are also expected. It was also found that the length of time necessary for training machine molders and coremakers has been shortened by mechanization. A report on the findings of the study of mechanized foundries was presented at the annual conference of the American Foundrymen’s Society in Atlantic City, N. J., in May 1956. Similar studies are being conducted in aircraft manufacturing, electronic equipment manufacture, building construction, air transportation, and printing.
A series of industry studies was begun in fiscal year 1955 to determine training needs and practices in various industries. A study of the electric power industry was published. The study summarized data obtained by field representatives from 920 electric power companies employing a total of about 300,000 workers. It was found that training programs had been developed by 502 companies, and that 360 of these companies were training apprentices. Training directors were employed by 85 percent of the companies that reported 5,000 or more workers, and by 42 percent of the firms that reported between 1,000 and 5,000 workers. Responsibility for the administration of training programs in relatively small companies was usually assigned to a superintendent or manager, although in some instances personnel managers and foremen had charge of training. Similar studies were begun during the year in aircraft manufacturing, printing, and foundries.
A report was also published on a sample survey of former apprentices who did not complete their training. It was found that the training received while apprentices helped a high proportion of them in their subsequent employment. A total of 38 percent of the former apprentices reported that they were working in the same trade in which they had been apprenticed. Another 12 percent were employed in a closely related trade.
International
During the fiscal year 1956,108 foreign trainees from 25 different countries received practical industrial training in a wide cross section of American industry under arrangements worked out by the Bureau of Apprenticeship. This compares with 102 from 20 countries who received similar training during fiscal 1955.
407351—57---5
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These trainees were brought to the United States under programs sponsored by the International Cooperation Administration; the United Nations, including the International Labor Office; and the Educational Exchange Service of the Department of State.
In addition to arranging training programs for individual participants, the Bureau organized and supervised a training program for a French team consisting of 12 members.
During fiscal 1956, the Bureau provided assistance to 236 foreign visitors, in addition to the 108 trainees for whom it held primary responsibility. These visitors were referred by other agencies to get a better understanding of the organization and administration of apprenticeship and industrial training in the United States.
Bureau assistance was provided the International Cooperation Administration in recruiting an apprenticeship specialist for El Salvador. Assistance was also given the International Labor Organization in recruiting consultants for foreign assignments. Five specialists originally recruited by the Bureau for the International Cooperation Administration for assignments in Iran continued to serve during the year.
Publications
During the fiscal year 1956,13 magazine articles, 11 booklets, 12 reprints of articles, 51 news releases, and 29 speeches for the Director and other officials of the Bureau were prepared.
More than 300 magazine articles and 2,000 newspaper articles on training were published during this period. These articles were based largely on the news releases mentioned above.
Among the magazine articles published, two described training programs of aircraft manufacturers—Lockheed Aircraft Corp, and Boeing Airplane Co. Another article, addressed to young men interested in aircraft, was entitled “Apprentice Training Leads to Careers in Craftsmanship.”
An article relating to training in any industry, entitled “How To Meet Skilled Manpower Needs,” stressed the need to establish an overall program to meet all training needs, current and future. An article entitled “Developing Super-Craftsmanship in Atomic Submarine Building” described the Electric Boat Co.’s training program.
A new simplified edition of the booklet The National Apprenticeship Program was prepared. A technical bulletin, Apprenticeship Trends, was published. This summarized data on registered apprentices in the United States, 1940-56.
More than 15,000 copies of booklets and other promotional literature were distributed in reply to requests to representatives of employers, labor, vocational education, and others directly or indirectly concerned with industrial training.
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Table 1.—Registered apprentices in the United States, July 1, 1956, by States
State	Number of apprentices
Alabama	 		1, 938
Alaska		' 313
Arizona			1, 456
Arkansas 	 		' 720
California		20, 748
Colorado		L 782
Connecticut		5, 996
Delaware		_		' 317
District of Columbia			2,144
Florida		3, 866
Georgia		2,703
Hawaii			' 543
Idaho 		588
Illinois		11, 684
Indiana		3, 703
Iowa 		L 880
Kansas. 			1', 159
Kentucky		2'320
Louisiana		£143
Maine		' 718
Maryland				2,495
Massachusetts			162
Michigan			10, 729
Minnesota 	 .	5,112
Mississippi		' 603
Missouri^-.-. 		4,331
	
State	Number of apprentices
Montana		1,180
Nebraska	 _	L 128
Nevada		' 425
New Hampshire.. 	 __		359
New Jersey.- 		4, 043
New Mexico		' 898
New York		1 16, 049
North Carolina			4, 655
North Dakota			233
Ohio		14,226
Oklahoma			1, 515
Oregon			£007
Pennsylvania 		7, 601
Puerto Rico		' 402
Rhode Island				1,198
South Carolina		L 142
South Dakota		' 268
Tennessee		2, 753
Texas		7,102
Utah	 		L 134
Vermont		' 481
Virginia		2, 739
Washington 	 		4,136
West Virginia	 			L 184
Wisconsin					6' 561
Wyoming. 		' 357
	
1 As of Jan. 1, 1956.
Table 2.—Registered apprentices in selected trades in the United States as of July 1, 1956, by trade
Trade	1956	1955	1954
Total.. ._	__ 					...	179, 929	162,690	156,567
Carpenter			 	 	 _	_	25, 707	23,854	22,140
Plumber 		 _ _	_ 					2L 374	20,517	18,428
Electrician	 	 _		 		16,968	16; 198	15, 766
Brickmason		__ _ 	 				 _	_	12i 133	8', 218	8,282
Sheet metal worker. . . 		 _	. . 	 ... 		io; 679	9; 893	8; 956
Auto mechanic			 . 				 			 _	9,686	9; 731	10; 646
Machinist						 _					8i 828	8; 439	9,206
Tool and die maker		 		 _ _ _	8, 699	8', 853	9,112
Printer					 _ _ _ _ _				5,850	5; 538	5; 355
Lineman	 _	__ _ 			 						5,424	4,083	3,460
Painter				 			 		 _______	4,497	4,197	3', 585
Pressman		 	 				 ___	3,678	3,620	3,225
Ironworker	 __ 		 		 				2,907	£556	2’, 208
Meatcutter				 _ _ _	2,482	2; 295	2,051
Plasterer ___ _ 		 	 			 					£459	£ 198	£333
Patternmaker	 ___ _ 				 _	1,835	L661	L550
Cabinetmaker..		 _ 					 _ 			L718	1,567	1,738
Draftsman __ __ _				1,474	L304	1', 268
Electrotyper-stereotyper		L 397	L424	L346
Roofer 			 	 __	L 348	i; 134	' 986
Photoengraver 				 		 					1,201	i; 279	1,112
Cement mason		L 074	' 860	'752
Other			28i 511	23,271	23,062
			
63
BUREAU OF EMPLOYEES’ COMPENSATION
65
BUREAU OF EMPLOYEES’ COMPENSATION
On September 7, 1956, the Federal Employees’ Compensation Act completed its 40th year of providing workmen’s compensation benefits for civilian Federal employees injured in the performance of duty. The act is administered by the Bureau of Employees’ Compensation.
From its inception the act was recognized as a significant forward step in social legislation. With but two major amending acts, in 1927 and 1949, it has retained its reputation as an effective means of providing adequate care and financial relief during periods of disability caused by Federal work injuries. In the nearly 40 years of operation to June 30, 1956, over 3,954,000 injuries to Federal employees were reported and close to $493,-000,000 disbursed to care for the injured or their dependents.
Besides the basic coverage of regular civilian Federal employees, either temporary or permanent in tenure of office, extensions of the act of September 7, 1916, embrace such diversified groups as employees of the government of the District of Columbia; commissioned officers of the Public Health Service; members of Reserve components of the military establishments; emergency relief employees; Federal student nurses; and certain employees injured or killed due to enemy action. For conditions of coverage and certain restrictions on benefits, the act itself should be consulted. Total coverage is conservatively calculated to be approximately 2,400,000 employees as of June 30, 1956. Coverage is international in nature and affects many hundreds of thousands of workers in trades and professions vital to national defense work.
The Federal workmen’s compensation system also covers certain employees of private industry. Included are thousands of maritime workers throughout the Nation, employees of private industry in the District of Columbia, and construction workers at outlying defense bases. Injury claims from such employees must be paid according to Federal statutes from insurance funds, or self-insurance provided by the private employer. Available information indicates that close to 1,000,000 workers are potential beneficiaries under the program. The Government provides medical, monetary, and vocational rehabilitation benefits for its own employees from direct appropriations made by Congress. For the others, it supervises certain operations to insure that relief is given promptly and in accordance with law through the usual channels of insurance or self-insurance paid for by the employing concerns. In the nearly 30 years that the Bureau of Employees’ Compensation has administered these private employment compensation acts, over 3,476,000 injury cases have been reported to June 30,
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1956. Disability and death payments in cases closed during this period, exclusive of medical costs, amounted to $182,739,312.
Nearly 194,000 employees were reported injured at work during fiscal year 1956, according to the Bureau’s official records. Direct disbursements made by the Bureau and the evaluation of cases closed under the private employment acts amounted to $60.2 million, 2 percent more than for 1955.
Federal Employees’ Compensation Act
The fiscal year which ended June 30, 1956, represented the sixth full fiscal period of operation under the liberalized provisions provided by the amendments of October 14, 1949 (c. 691, 63 stat. 854). During the year a total of 92,798 new injury cases was received, and 697 fatal cases were awarded compensation benefits. Total disbursements climbed to an unprecedented sum of $50,630,527.
Disability Payments
During the fiscal year 1956, a total of 40,706 Federal employees received cash benefits as a result of nonfatal injuries involving disability in excess of the statutory 3-day waiting period. Of this number, there were 21,091 employees who were paid wages during disability and their absence from work was chargeable to leave which they elected to take. An additional 11,187 employees received final payments of compensation due them and their cases were considered closed. At the close of the year there remained on the compensation rolls a total of 8,428 nonfatal cases. Disability compensation paid during the year, exclusive of leave cost, amounted to $19,270,903, approximately 73 percent of the wage loss. This is in marked contrast to the situation just prior to the amendments of 1949 when limited payments of $116.66 per month resulted in an effective compensation rate of less than 45 percent.
Of considerable importance is the role of the scheduled award in affording benefits beyond the healing period in instances where there is permanent anatomical impairment, such as loss or partial loss of an eye, arm, hand, finger, leg, foot, or toe. From October 14, 1949, to June 30, 1956, the Bureau of Employees’ Compensation certified 9,876 scheduled awards. By the end of the fiscal year, 8,761 awards had been terminated and scheduled payments were being made to 1,115 cases. These 9,876 cases received an average award of $192 per month, amounting to $3,217 per case over and above healing period payments. Awards ranged all the way from $19 for partial loss of a little finger to $37,800 for complete loss of an arm. As might well be expected, most of the employees who received scheduled awards for permanent partial disabilities were laborers, mechanics, machine operators, and trades employees of all descriptions, particularly carpenters. Included, however, were doctors, nurses, engineers, foremen, and office clerks. Payment of scheduled awards does not preclude continuation of benefits where loss of earning capacity persists due to complete loss or loss
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of use of major anatomical members. In addition to these scheduled award cases, there were on June 30, 1956, approximately 7,313 nonfatal cases receiving compensation benefits for loss of earning capacity.
Death Benefits
More than 16,000 families were awarded death compensation over the period September 7, 1916, to June 30, 1956, as a result of fatal occupational injuries. The exact number recorded is 16,008 fatal cases with 37,029 dependents entitled to benefits. Average award per case, prior to the amendments of October 14, 1949, was $56.21 per month; and the average evaluation amounted to $12,412 per dependency case. Comparable figures today indicate an average monthly payment of $210.80 and an average evaluation of approximately $48,000 per dependency case. During the fiscal year 1956, death compensation mounted to $22,192,020, or 5 percent above that for 1955- Awards were made to 1,595 dependents in 697 cases. As of June 30, 1956, death compensation payments were being made in 9,710 Federal cases and 1,252 cases under emergency relief acts.
Medical Care and Rehabilitation
The Federal Compensation Act places no limitation on necessary medical and hospital services. Wherever practicable, these services and supplies are furnished by United States medical officers and hospitals. For this purpose the hospitals and dispensaries of the Public Health Service of the Department of Health, Education, and Welfare are available without charge, as to a limited extent are the hospitals under the control of the Bureau of Indian Affairs. The Army and Navy hospitals are generally used only for the treatment of civilian employees of the Department of Defense and are reimbursed from the compensation fund at the rate established for such service.
In localities where the services of the United States medical officers are not available, medical treatment is furnished by private physicians designated by the Bureau. These physicians, numbering approximately 3,000, are paid by the Bureau for services actually rendered. Nearly $6,820,000 was expended during fiscal 1956 from the compensation fund for medical treatment furnished by public and private facilities and for transportation incident to such treatment. Nearly 108,000 payments were certified during the year.
After medical care has been afforded there frequently remains the more difficult pioblem of helping the injured employee return to remunerative employment so far as his aptitudes and abilities will permit. This kind of rehabilitation for the injured employee with a permanent physical handicap naturally begins with physical restoration, and in many cases it commences at the very start of physical recovery.
The Bureau cooperates closely with the Office of Vocational Rehabilitation of the Department of Health, Education, and Welfare and State re
69
habilitation agencies; and during the past year has referred to them many injured Federal employees believed to be in need of specialized occupational rehabilitation.
Third-Party Liability
When accidents occur for which a third party other than the United States appears legally liable, action is initiated to collect damages. Recoveries of damages were made in 982 third-party cases, the gross amount of such recoveries being $2,403,913-54. This is an increase of $334,711.05 over the amount of the gross recoveries made during the previous year. After deducting attorneys’ fees, which amounted to 23 percent of the damages recovered, and expenses of collection, the net recoveries amount to $1,840,238.78. As of June 30, 1956, there were 2,095 third-party cases still pending in the Bureau.
Longshoremen’s and Harbor Workers’ Compensation Act
The Longshoremen’s and Harbor Workers’ Compensation Act of 1927 covers employees engaged wholly or partly in maritime employment upon the navigable waters of the United States. Such employees include longshoremen, ship repairmen, seivicemen, harbor employees, and others whose employments are maritime in character. Through subsequent amendments, the act has been extended to include private employees in the District of Columbia; employees of contractors with the United States engaged in defense base work outside the continental limits of the United States; and employees covered by the Outer Continental Shelf Lands Act of 1953. The act is administered through deputy commissioners in 13 compensation districts.
Longshoremen and Harbor Workers
Reports received by the Bureau in the fiscal year 1956 cover 69,755 work injuries under the Longshoremen’s Act. Although many of these injuries entail only minor'disabilities and a large proportion of the employees recover within the statutory waiting period, others are far more serious and frequently ate permanent. That this is so may be seen by the fact that for cases closed in the fiscal year 1956 some 2.2 million days were lost as a result of work injuries. Compensation paid in 11,862 cases closed during the year amounted to $8,018,000, including $493,358 for 87 fatal cases. These amounts, and those quoted immediately below, ate exclusive of medical expenses. On June 30, 1956, there were 11,309 nonfatal and 886 fatal cases open in the offices of the 13 compensation districts. Compensation was being paid in 2,997 nonfatal cases and 744 fatal cases.
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Industrial Workers in the District of Columbia
Although precise information is not available on the number of employees of private industries in the District of Columbia, it appears that about 250,000 workers, employed by nearly 20,000 employers, are covered by the District of Columbia Compensation Act administered by the Bureau.
During the fiscal year 1956 the Bureau received reports of 26,142 injuries, including 32 fatal cases, representing a slight decrease from the total for 1955. By the end of the year, 721,133 injuries, including 1,446 fatalities, had been reported under this law during its 28 years of operation.
Compensated Cases
Although in a very large percentage of the 26,892 cases closed during the fiscal year 1956 the injury did not cause any loss of time from work beyond the day of injury, many of the disabling injuries were serious in nature and extent. Of the 6,855 disabling injuries, 3,088 cases were compensated. Of the compensated cases, 460 involved permanent disability. In 77 cases, awards amounting to $16,850 were made for serious facial disfigurement.
Compensation paid in nonfatal cases closed during 1956 amounted to $1,070,746 for 253,871 days of disability. The cost of 22 fatal cases closed during 1956 was $146,197.
During the year, awards were made to 29 dependents in 17 fatal cases. At present these cases are evaluated at $228,684. In addition to fatal cases in which new awards were made, it was necessary to make a number of modified awards involving dependents in fatal cases previously awarded benefits. All compensation benefit figures quoted here exclude medical costs, concerning which the Bureau is usually not advised under this act.
As of June 30, 1956, a total of 2,779 injury cases remained open pending final action. This number includes 687 nonfatal and 232 fatal cases upon which compensation was being paid. The remaining cases were incomplete and in various stages of adjudication.
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Table 1.—Operations under the Federal Employees’ Compensation Act1 July 1, 1951, to June 30, 1956
72
stfaz coco-	100,375 120	»o>	i		gs	fr	Sf^SigSgSs gsWfaWS tf'cfri^J'co .-I w	50, 630,527	
	97,348 117	H	i	g§s*rt	2,657 2.0	F		48,324,333 |	sg
	s§ §	7,919 7,909	§			F	slsssslsggS g§§ls^§ssf cor^'r^'ci'c© of of	43,692,268	
®5E55	OS §	os	!	§§§§ i ! : :	3, 961 2.3	$27, 747 $393 37	sg£sgSgg888 §gbssE5B’s	41,355,917 |	
BBSS	H§ §	8,040 6,050	g			F	§S“§8aSSggs BBEs§E5l§®S >g clco cf>o	36,233.944	
sfisFii ©oooo	coci	s§ s	!-!-	s	s§B°2	2,008 2.7	R.B”	$5,354,032 4,001,944 2,603,390 108,489 1,626,398 616’957	14,305,210	sg
relief acts except where specifically indicated. Includes reservists of the Armed Forces, except where
H	6	W
73
3
g 6
	1956	100,790 171	100,961 64	31, 542 38,213 4,261 26,142 803	100,961	71, 553 26,892 4,782 747	103,974	$8,018,233 $1,216,943 $353,724 $38,022	$9,626,922
	1955	93,325 167	93,492 59	28,801 33,609 4,534 26,138 410	93,492	64, 541 26,651 5,061 365	96,618	$8,768,049 $1,221,247 $494,405 $14, 793	| $10,498,494
Fiscal year—	1954	102,988 214	103,202 65	28,046 41,097 7,415 26,644	103,202 |	72,066 27, 819 8,003	107,888	$8,925,454 $1,352,922 $520,330	| $10,798,706
	1953	128,025 219	128,244 81	27,857 59,240 13,856 27,291	128,244 |	88,891 28,448 14,710	132,049	$8, 732,012 $1,295,234 $681,950	| $10,709,196
	1952	139,021 263	139,284 88	31,465 61, 545 17,241 29,033	139,284	92,844 30,101 16,725	139,670	$7,683,733 $1,307, 596 $605,072	$9, 596,401
Average, 1947, 1948,	and 1949	157, 954 280	158,234 100	52,806 61,496 14,465 29,467	158,234	116,857 30,033 14,659	161,549	$7,143,222 $867, 512 $630,141	$8,640,875
Item		A. Injury cases reported: Nonfatal					 Fatal		-			1	1 1 1 1	1 1 1 1 1 1 1 1	1 1	1 1 1 1	1 1	1 1 1 1	1 O O	B. Kinds of employees injured: Longshoremen	 Harbor workers	 Defense base workers			 District of Columbia private employees	 Outer Continental Shelf		Total—					-	—-			C. Final disposition of injury cases: Number of cases closed: Longshoremen’s and Harbor Workers’ Compensation Act	 District of Columbia Workmen’s Compensation Act	 Defense Bases Act			 Outer Continental Shelf Lands Act		1 1 1 1 1 1 ♦ 1 1 1 1 1 1 1 1 1 ( 1 1 1 1 3 o E-i	Evaluation of cases closed (excluding medical): Longshoremen’s and Harbor Workers’ Compensation Act	 District of Columbia Workmen’s Compensation Act	 Defense Bases Act					 Outer Continental Shelf Lands Act				-	
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86 17 18 2		S3 r—<	12,195 2, 779 1,317 145	16,436 103	534 365
35 16 26			11, 980 2,763 1,571 63	16,377 102	507 361
		£	Bss i	gs s	si
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		§	==g:	eS s	Si
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Table 3.—Appropriations and expenditures, fiscal years 1952-56
Period covered	Salaries and expenses			Compensation benefits	
	Total appropriations	Total expenditures, all acts, including estimated obligations	Net expenditures, Federal act, including estimated outstanding liabilities at the end of fiscal year	Total appropriations	Net expenditures
Year ending June 30: 1952	 			$2,305,316 2,494, 600 2,290,000 2,338,095 2,612,956	$2, 286, 724 2,481,838 2,287,304 2,335,603 2,612,424	$1,315,086 1,410, 760 1, 298,399 1, 296, 789 1,462,171	$36,167,968 41,500,000 43, 750, 000 48, 559, 611 50,630,672	$36,233,944 41,355,917 43, 692, 268 48,324,333 50,630, 527
1953-.. 	 _							
1954.						
1955	 _ _ _					
1956-.-							
					
Table 4.— Trust fund accounts for fiscal years 1952-56
LONGSHOREMEN’S AND HARBOR WORKER’S COMPENSATION ACT
	1952	1953	1954	1955	1956
Balance, July 1	 Receipts, fiscal year	 Total	 Expenditures	 Balance, June 30		$645, 669. 46 36,405. 54	$673,252. 63 39,245.14	$705,233. 46 37,158.06	$734,522. 62 i 54,244.30	$778,135.85 31,548.60
	682,075. 00 8,822.37	712, 497. 77 7,264.31	742,391. 52 7,868. 90	788, 766. 92 10,631. 07	809, 684.45 15,081. 54
	673, 252. 63	705,233. 46	734, 522. 62	778,135. 85	794,602. 91
DISTRICT OF COLUMBIA COMPENSATION ACT
Balance, July 1	 Receipts, fiscal year	 Total	 Expenditures	 Balance, June 30		$104,406.12 9,487.06	$108, 562. 94 3,467. 50	$107,147. 33 7,613. 58	$111,953. 75 9, 574.30	$118,176. 20 3,923. 70
	113,893.18 5,330. 24	112,030. 44 4,883.11	114, 760. 91 2,807.16	121, 528.05 3,351. 85	122,099. 90 2, 816. 60
	108,562. 94	107,147.33	111, 953. 75	118,176.20	119,283.30
1 Includes $19,439 future proceeds from investments in Government Bonds Series J.
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EMPLOYEES’ COMPENSATION APPEALS BOARD
The Employees’ Compensation Appeals Board is a quasi-judicial body, established in 1946, with exclusive jurisdiction to consider and decide appeals from final decisions of the Bureau of Employees’ Compensation pursuant to the provisions of the Federal Employees’ Compensation Act. The jurisdiction of the Board extends to questions of law and fact and to questions involving the exercise of discretion based on the case record upon which the Bureau rendered its decision. New evidence may not be submitted to the Board. Appeal is a matter of right, as is the opportunity to appear before the Board and to be heard in oral argument. Procedures are informal and are designed to facilitate the presentation of cases. Decisions of the Board are final as to the subject matter appealed.
There were 181 cases pending at the beginning of the fiscal period. During the year, 434 new appeals were docketed, making a total of 615 cases. The Board disposed of 445 cases. The year ended with 170 pending cases, which is the lowest figure since 1951. A breakdown of the 170 cases pending as of June 30, 1956, discloses that 93 were ready for Board adjudication. Of the 93 cases, 26 had been heard in oral argument, 56 had been submitted on the record, 2 were Bureau motions to remand, and 9 were motions to dismiss. The Board, in executive session, had “decided” 31 of the 93 cases which were in process of preparation of formal decision with opinion. The balance of 77 cases were not in posture for decision. Of the 77 cases, 53 were awaiting Bureau Memorandum in Justification of its decision, 11 were pending appellant’s reply to the Bureau’s Memorandum in Justification, and 13 were awaiting a hearing pursuant to request for oral argument.
The average time lapse from the date of filing an appeal to the date of closing was 7-3 months for cases in which hearings were held and 4.3 months for cases submitted on the record. Applications for approval of attorneys’ fees were filed in 28 cases.
The operation of the Board is on a current basis. The speed in rendering decisions must be secondary to the basic fundamental requirement that each case receive a complete, careful, and thorough consideration of the evidence of record and that the opinion which is rendered be clear and demonstrate that the conclusion reached is supported by the facts and the law.
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Employees' Compensation Appeals Board
	Fiscal year—									
	1947	1948	1949	1950	1951	1952	1953	1954	1955	1956
Carried forward.		0	35	81	97	120	225	366	453	341	181
New cases...		64	113	111	127	257	337	504	531	531	434
Total docket 		64	148	192	224	377	562	870	984	872	615
Closed . ... . . _ . 		29	87	95	104	152	196	417	643	691	445
Pending, year end		35	81	97	120	225	366	453	341	181	170
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BUREAU OF EMPLOYMENT SECURITY
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CONTENTS
Page
Introduction........................................ 85
Production and jobs................................. 86
Employment service.................................. 88
Administrative developments..................... 89
Basic program developments...................... 90
Farm Placement Service.......................... 94
Special program developments.................... 96
Unemployment insurance.............................. 98
Legislative and program developments........... 101
Manpower measures for defense readiness............ 105
Related responsibilities........................... 107
Labor market information....................... 107
Admission of aliens............................ 110
Refugee program................................ 110
Critical occupations and essential activities.. 110
International labor activities................. Ill
Federal Advisory Council recommendations.......... Ill
Statistical appendix............................... 114
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Introduction
Within the past generation, new professions, new institutions have had to be created to help people adjust to the rapidly changing and incredibly complex world of work. One of these institutions is the Federal-State employment security system. This institution, made up of State employment security agencies linked with each other and with the Federal Government through the Department of Labor’s Bureau of Employment Security, has the basic task of finding jobs for workers, and of providing income to meet the nondeferrable expenses of workers who are unemployed. More positively, it uses its resources, knowledge and skills to promote full employment.
Proceeding from this fundamental responsibility, functions have been added until this Federal-State system has become an active participant in planning and operating economic, income maintenance, labor market, and defense manpower programs. These added responsibilities range from preparing labor market information vital to the work of the Council of Economic Advisers and such Presidential commissions as that on migratory labor and on veterans’ pensions to devising and maintaining a nationwide labor market classification system to which are tied most Government programs designed to help areas where there is a labor surplus.
The employment security system consists of a large organization by any standards. It operates under laws passed by 54 separate legislative bodies and does its work through the combined efforts of a Washington office, 11 regional offices, and 53 State agencies. Its points of contact with its ‘ ‘ customers”—the workers and their employers—are the 1,700 full-time and 2,300 part-time local offices, stretching from Maine to Hawaii and from Alaska to the Virgin Islands—and soon to Guam.
The administration of the entire system is federally financed, and the Secretary of Labor is administratively responsible for all funds granted to both the Federal Government and to the States by the Congress of the United States, to which he is accountable.
In addition to defining for the States the standards they must meet in order to qualify for grants, and seeing to it that they meet them, the Bureau makes its major contribution to the system through program development, improvement, and standardization, in technical assistance, and in the exchange of successful experience among the States.
This is a report of the operations of the system during fiscal year 1956, as well as the accounting of the Bureau’s stewardship.
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Production and Jobs
During fiscal year 1956, the Nation reached and maintained levels of production and employment well above those of any other year.
Production Went Up
The industrial production rate (seasonally adjusted) stood at 139 percent of the 1947-49 average in July 1955- This was already 14 points higher than for calendar year 1954. Industrial production increased without interruption through the first half of fiscal year 1956. By December 1955, it reached a rate of 144 percent of the 1947-49 average—5 points higher than in July 1955 and 10 points higher than average production in 1953-
During the last half of the fiscal year, industrial production fell off somewhat. But by June of 1956 its rate was still 2 points higher than at the beginning of the fiscal year. Both durable and nondurable manufactures shared in this gain in spite of sharply curtailed automobile production. Mineral production rose by over 7 percent in the period.
Construction activity, which had maintained a relatively high level during the 1953-54 recession, was at an even higher level by the beginning of the fiscal year. The volume of home building slacked off at the beginning of the second half of the fiscal year, remaining lower than a year earlier during that period. However, industrial and commercial construction increased rapidly during this period, and by June 1956 construction outlays established a new record.
In July 1955, gross national product, personal income, compensation of employees, and personal consumption expenditures were at unprecedented high levels. All increased steadily and rapidly during the year. By the last quarter of the fiscal year, gross national product, at the annual rate of $408.3 billion, was about $21 billion greater than a year earlier. Personal income, at the rate of $322.9 billion, was $19 billion higher. Compensation of employees was $16 billion higher and the rate of personal consumption expenditures was $12 billion higher than a year earlier.
The Labor Force Increased
By July 1955, the civilian labor force was larger than ever before for that month. It continued to increase rapidly throughout the year. By June 1956, the civilian labor force of 69-4 million was over 2.7 million higher than a year earlier—a gain at least three times as great as usual.
Employment and Unemployment Both Rose
Employment as well as production was at a high level at the beginning of the fiscal year. It increased rapidly during the fiscal year, except for seasonal variations, and by June 1956 was about 2.5 million workers higher than a year earlier.
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Farm employment, which had decreased for several years, leveled off in fiscal year 1955, and began to rise in the latter part of fiscal year 1956. The Bureau of the Census reported an average of 6.8 million employed in agriculture in the fiscal year 1956—300,000 higher than in the previous year.
At the beginning of fiscal year 1956, unemployment, which had dropped sharply from the middle of 1954, was at a lower level than in most postwar years. It continued at a relatively low level in the first part of fiscal year 1956, with employment gains exceeding labor force growth. In the last half of the fiscal year, employment continued to gain, but the labor force increased even more rapidly. At year’s end the volume of unemployment, which was somewhat higher than at the beginning of the fiscal year, held at the comparatively favorable rate of a little less than 4 percent of the labor force.
Area Labor Market Developments
Unemployment declined in almost all parts of the country, except in a few areas dependent on the automotive industry. Auto employment was cut back sharply in a number of the industry’s major centers during the second half of the year, but the impact of these curtailments did not spread to other sectors of the economy. Job totals in most nonautomotive factory lines continued at record or near-record levels in most areas, while employment in nonmanufacturing activities expanded briskly. Over the year employment levels rose in 129 of the 149 major areas which are included in the Bureau of Employment Security’s regular area labor market reporting program.
These gains bit deeply into the available labor supply in many areas. When fiscal year 1956 got under way, only 29 of the 149 major areas were classified by the Bureau as having low unemployment and a relatively tight labor market (Group B classification). By the year end, there were 52 areas in this grouping—the largest number in the tight labor market category since November 1953- Among the areas moving into Group B during the year were such key industrial centers as Chicago, Los Angeles, Baltimore, Boston, Milwaukee, and Minneapolis-St. Paul.
For fiscal year 1956 as a whole, there were fewer areas with relatively significant unemployment problems than in 1955. Thirty-one major areas were officially classified by the Bureau as * ‘ areas of substantial labor surplus” (Groups D, E, and F) as the fiscal year began; by mid-year, payroll increases in many localities had cut the major area labor surplus list to a low of 19. The recovery was centered in areas such as Philadelphia, Pittsburgh, San Diego, Portland, Oreg., and Paterson, N. J., which had developed short-run unemployment problems during the 1954 business downturn. The classification of a number of key auto centers—among them Detroit and Flint, Mich., South Bend, Ind., and Kenosha, Wis.—in the surplus category toward the end of fiscal year 1956 brought the number of major areas on the surplus list to a total of 23 by the year end. Sixty smaller areas were classi
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fied in the labor surplus category in July 1956 as compared with 101 a year earlier.
Area classifications of the 149 major areas
Labor supply category 1
	Total	A	B	C	D	E	F
July 1956		149	0	52	74	15	5	3
July 1955		149	0	29	89	19	5	7
1 Areas classified in Groups D, E, and F are regarded as areas of substantial labor surplus under Federal Government programs to alleviate localized unemployment.
The 23 major areas classified as surplus comprised 7 major auto centers, 5 coal mining areas, 4 important textile centers, and 6 which lack an industrial base adequate to support a growing population on a year-round basis. Heavy unemployment in the remaining (Altoona) area was due to peculiarly local cutbacks in railroad equipment. Auto curtailments, long-range cutbacks in coal mining, textiles, and ordnance, and lack of an adequate industrial base are the most common causes for heavy unemployment in the 61 smaller surplus areas.
Local Occupational Shortages Increased
While worker shortages did not seriously impede employer production schedules, recruitment difficulties were more extensively reported than at any time in the past few years. In many instances, shortages were spreading beyond the longstanding scarcity of engineers, toolroom, and machineshop skills. The heaviest volume of unmet labor needs continued to be reported by aircraft, machinery, and metals centers.
During the fiscal year, the number of job openings placed in the public employment service system of labor clearance because of inadequate local labor supplies increased steadily from 19,900 to well over 32,000.
Local shortages of professional and managerial personnel accounted for about 45 percent of all openings in clearance. Recruitment difficulties were most marked for engineers. There were also substantial numbers of openings for nurses, social and welfare workers, draftsmen, mathematicians, and physicists.
Out-of-area recruitment of skilled workers increased steadily during these 12 months. Important among these shortage occupations were the top metalworking crafts—including machinists, tool and die makers, and skilled machine tool operators—electronics technicians, and airplane mechanics. Stenographer and typist shortages continued to dominate nonlocal recruitment for clerical workers.
Employment Service
During fiscal year 1956, nearly 8.1 million job seekers filed new work applications at the 1,700 local offices of the public employment service, a
decrease of some 400,000 from the previous year. Job placements totaled 15.4 million, or about 900,000 more than during the previous year. The 9-2 million farm placements were 3 percent more than in fiscal 1955, while the 6.2 million nonfarm placements were an increase of 11.5 percent.
The increase in placements in the “white collar” occupations (professional, managerial, clerical, and sales) was most substantial, rising 14.2 percent from 829,218 placements in fiscal year 1955 to 946,776 in fiscal year 1956. Skilled and semiskilled placements increased 12.8 percent from 1,044,665 to 1,177,937.
Administrative Developments
These changes signaled the success of a series of major administrative changes designed to readjust the employment security system’s activities to the needs of our rapidly evolving labor force. For several years, it had been apparent that the employment service was not keeping step with changing needs. The reasons for this were complex.
The Problem
Because of imperfections in the contingency fund mechanism, and because most of the State agencies did not have workable systems for adding temporary workers, it had become customary to divert employment service staff to take the insurance claims at times of peak unemployment. Short-time placements which can be made with little effort increased rapidly, and regular or permanent-type placements began to account for a smaller and smaller share of total placements. Short-time placements rose from 998,000 in fiscal year 1948 to 1,707,000 in fiscal year 1953. During the same period, permanent-type nonfarm placements rose only from 4,458,000 to 4,900,000.
This heavy shift to “quickie” placements progressively and drastically reduced the overall average placement time factor “ experience” which then constituted a prime basis for grants to the States. By fiscal year 1954, this factor had dropped from 71.9 minutes per unit to 56.3 m. p. u. Resources had declined accordingly, and the system lost 2,068 positions—a 13 percent staff cut—in 6 years.
In fiscal year 1954, severe appropriation cuts further reduced employment service staff by 2,062 positions, bringing the total loss of staff to 23 percent. “Quickie” placements continued to rise but permanent-type placements dropped by more than a million, to 3,933,000 in fiscal year 1954, reaching a low point of 3,916,000 in fiscal year 1955.
The Remedy
Having identified the causes of the situation, the Bureau devoted the major portion of fiscal years 1954 and 1955 to working out administrative steps to deal with them. These steps were put into full effect during fiscal year 1956.
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1.	An intensive and successful effort was made to obtain a thorough understanding of the problem and its causes by the individual State agencies, the Interstate Conference of State Employment Security Agencies, the Federal Advisory Council, and the Bureau of the Budget.
2.	Improvements in the administration of the contingency fund made it easier for State administrators to obtain funds for temporary personnel to meet claims peaks.
3.	The Bureau urged State agencies to establish, under their own civil service rules, effective systems for maintaining and using rosters of temporary personnel. By the end of fiscal year 1956, most of the States had done so.
4.	A wholly new system of standard time factors was installed. It measured, for the first time, the widely different categories of placements (e. g., 169.6 minutes for professional, managerial, clerical and sales placements, as contrasted to 21.7 minutes for casual and domestic daywork placements).
5.	The Bureau estimated program workloads for fiscal year 1956 much higher than could be justified by any experience in recent years on the grounds that dwindling resources rather than reduction in potential workload had been the prime cause of the reduction in work done.
Results
As a result, permanent-type placements rose 12 percent in 1 year—from 3,916,000 (1955) to 4,389,000 (1956).
The 22-million-week decline in the number of weeks compensated for unemployment (73,516,903 weeks in fiscal year 1955 and only 51,805,215 in fiscal year 1956) represents a saving of more than $500 million in compensation payments. It represents more than twice that in actual earnings and purchasing power.
If even a small portion of this decline in weeks compensated is due to the increase in placements—and the increase in permanent-type placements alone was 473,000—the added cost of higher quality service to workers seeking employment seems definitely worthwhile.
Basic Program Developments
Helping workers find jobs in our complex mid-20th century labor market is not a mere paper-matching process. In relatively recent years, as concepts of management became more worker-centered and less job-centered, the art of matching men and jobs has become more and more difficult. In our public employment offices we find that improving the quality of services, and the quality of the tools at the disposal of the placement personnel, is becoming not merely desirable, but necessary, to getting the job done at all.
Fiscal year 1956 marked a turning point in the matter of the quality of the basic services offered to the applicant by the employment security system of the Nation.
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Quality of Counseling Improved
Employment counseling interviews were achieved at 95.5 percent of the units allocated even though this included highly accelerated emphasis on the seriously physically handicapped. A total of 1,445,000 counseling interviews were conducted. But more important than the numbers was the increase in the quality of the counseling as evidenced by the increasing number of counselees successfully placed.
New Tests Developed
More than 1,200 local offices are now equipped with testing facilities and test more than a million applicants a year. This is double the number of applicants tested in 1948. Some 1,400 multistate employers regularly request test-selected applicants from local offices throughout the land. Tests given include trade tests to measure occupational skills already acquired and aptitude tests to measure potentiality for acquiring skills. In 1956, aptitude and proficiency testing goals were substantially surpassed—120 percent.
D. O. T. Studies Continued
There are about 35,000 separate and different jobs in the United States. The Dictionary of Occupational Titles defines more than 22,000 of these, leaving almost 13,000 jobs to be defined and classified. Moreover, as a result of technological changes, it is estimated that about 5,500 job definitions presently in the Dictionary are obsolete. During the past year, studies to extend the Dictionary’s coverage were undertaken in such industries as iron and steel, petroleum refining, construction, powder metallurgy and insulated wire and cable. These industries were selected because of their importance to the economy and the extent of technological change that has occurred in them.
Functional Occupational Classification Project
Ordinary workers, like actors, get “ typed” by what they happen to have done rather than by what they can do. Placement interviewers know this, and try to refer their applicants to the widest possible variety of jobs—but in so doing they are limited to their own knowledge and imagination. Present systems designed to match worker qualifications with job requirements are essentially based on similarities of worker experience on specific jobs. They are job-centered rather than worker-centered.
Six years ago, the Bureau undertook to develop an additional classification system which would relate such components as interests, aptitudes, training time, temperaments, physical capacities, and working conditions to specific sets of job requirements. The purpose is to create a system which will enable the local office to refer applicants to the maximum number of jobs they can do, and also to make available to employers the maximum number of workers from which to make selections.
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A tentative classification structure has been drawn up on the basis of a selected sample of 4,000 jobs from the Dictionary of Occupational Titles. With the help of 10 State analysts, the remaining 18,000 definitions in the Dictionary were completed during fiscal year 1956.
Pending development of the final classification system, the data accumulated on the 4,000 job sample are being made available to counselors and interviewers as a separate publication, Estimates of Worker Trait Requirements of 4,000 Jobs as Defined in the Dictionary of Occupational Titles, to be issued in fiscal year 1957.
Out-of-Area Recruitment Continued To Increase
During the fiscal year, local offices referred 317,481 workers to jobs in other areas. As a result of these referrals, 124,205 workers were employed, an increase of 48 percent over fiscal year 1955- At year’s end, workers were being sought in 1,045 different occupations as compared with 904 in June 1955- Professional and managerial out-of-area recruitment rose by more than 42 percent, clerical and kindred by more than 47 percent, and skilled and semiskilled, by more than 25 percent.
Services to Scientific and Professional Personnel Improved
In the spring of 1956, the Bureau inaugurated an experimental program of improved service to professional workers and their employers. Eight northeastern States, the District of Columbia, and Puerto Rico are cooperating. The 320 local offices of the participating agencies are pooled into a single network for the placement of professional workers.
The Bureau also arranged with the armed services, the Office of Education, the Retired Officers’ Association, and the National Education Association, to encourage retiring military personnel to continue working in fields using their training and experience and to file their applications with the employment service. Many of the military people who retired in fiscal year 1956 found employment with automobile, aircraft, and chemical manufacturers, as well as with school systems throughout the country. The most promising openings seem to be for teachers, particularly of science and mathematics in the secondary schools, physicists, chemists, engineers, and high-level management assistance in scientific fields.
Continuing the trend of past years, the public employment services provided placement services at an increasing number of national conventions of professional societies.
Employer Relations
In recent years, there has been a marked increase in the acceptance and use of the public employment agencies’ facilities and services by employers throughout the country. This has not been accidental.
During fiscal year 1956, the Bureau continued to develop its relations with employers and to help State agencies to do likewise. Developing employer
92
relations means finding out what their needs are and showing them how the public employment services can meet those needs.
In fiscal year 1956, for instance, top management officials of 58 multi-State retail firms and officers of corresponding national trade associations were consulted as to the employment needs of the retail trades and briefed on the overall employment service program, policies, and services. A cooperative program was developed with the United States Office of Education in the field of distributive education. Similarly, a special cooperative program was developed with the Hotel and Restaurant Employees and Bartenders International Union (AFL) to provide better selection and more effective training of cooks and bakers in the hotel and restaurant industry.
As a result of liaison with the Department of Defense, a policy statement was included in the armed services procurement regulations directing the military services to encourage contractors to use the USES and the affiliated State employment service offices.
The Bureau demonstrated to 13 State agencies its group approach method of obtaining greater number and variety of job vacancies from employers who are making little or no use of the service. Under this method, local office staff members pool information, ideas, and experience and apply employment service aids such as aptitude testing, job analysis, etc., to find a solution to an employer’s hiring problem or problems and hence “sell” him on the value of the public employment services.
Community Employment Development
Full employment or the lack thereof, in the final analysis, is more often the problem of local cities and towns than a national problem. Fortunately America’s cities and towns are very active in seeking out new employers and assuring their own expanding economic development. The latest tabulation made by the Bureau indicates that more than 1,600 local industrial development groups were active and that the local public employment offices worked directly with about 900 of them.
During fiscal year 1956, Bureau personnel and representatives of State employment security agencies took part in many State and regionwide industrial development conferences, including the Western Area Development Conference, the Missouri Basin Research and Development Conference, and the Great Lakes States Industrial Development Council.
Information materials on industrial development activities in other States, and suggestions for local office community employment development training programs, and area employment development reference materials were provided to State agencies.
Special efforts were made to help areas with substantial labor surpluses. Cooperative arrangements were maintained during the year with other government agencies and private organizations such as the Office of Defense Mobilization, Departments of Commerce, Defense, and Interior, United States Chamber of Commerce, Urban Land Institute, Stanford Research Institute, and national labor organizations.
407351—57----7
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Farm Placement Service
During fiscal year 1956, agricultural employment, which had been declining steadily for several years, rose by about 3 percent. However, the recruitment and use of workers available to agriculture continued to pose difficult problems for the employment services.
Year-Round Workers
The scarcity of year-round workers continued, although reports from the States indicated that placements in this category increased during the year. The Farm Placement Day, at which qualified farmworkers meet with employers in local offices, continued to be one of the most effective recruiting techniques. Ninety-five local offices used this method in fiscal year 1956 and the number of days held rose 60 percent over the previous year—from 837 to 1,366.
Local Seasonal Workers
Day hauls continued to be the principal method of using local workers in seasonal farm activities. In the 1955 farm season (which ended in fiscal year 1956) day hauls were operated to pick up workers at 2,709 points in 1,294 towns over the country.
Migratory Seasonal Workers
Thirty-four States, including most of those in which migratory labor is used to a considerable extent, now have adopted the principles of the annual worker plan. Under this plan, crews of migrants work along itineraries worked out in advance with local employment offices along the way to eliminate “blind” movements and consequent loss of employment of the workers, and assure sufficient numbers of workers at the right places at the right times. In fiscal year 1956—4,854 crews comprising 123,782 workers were identified with the plan.
During the fiscal year, 32 States participated in farm labor employment agreements—a practical extension of the annual worker plan principles— wherein those States with surpluses of farm labor at times of farm labor demand in other States, agree to recruit workers for each other for stipulated kinds and periods of farm employment.
Community Services
During fiscal year 1956, the Bureau increased its efforts to get employers and communities to contribute more substantially to migrant welfare. Points emphasized were provision of adequate housing and safe transportation, stricter health and sanitation laws, provision for child care and education, planned recreation for youths and adults, and facilities for religious services.
The President’s Committee on Migratory Labor, chaired by Secretary Mitchell, continued to urge States to appoint State migratory labor committees to study State problems and make recommendations for improvement. Thus far, 12 States have announced such committees, and several others have indicated intentions to form them.
Foreign Workers
Domestic farmworkers were supplemented with workers from Mexico, the British West Indies, and Canada for short periods of temporary work at peak seasons.
Peak employment for Canadian workers, most of whom are employed in the Maine potato harvest, reached almost 7,000 in September 1955. Peak employment of British West Indian workers, including those held over from the previous period, reached 10,110 in January 1956.
More Mexican Workers
A total of 428,376 Mexicans were contracted to United States employers in fiscal year 1956 at the reception centers at Hidalgo, Eagle Pass, and El Paso, Tex.; Nogales, Ariz.; and El Centro, Calif. This total was 97,451 more than in 1955.
Improved Facilities
An extensive program of improvements to reception centers was undertaken in the fall of 1955, for which approximately $250,000 was expended in the fiscal year out of the revolving fund maintained by contracting fees paid by employers.
Wage Determinations
Procedures for finding prevailing wage rates for domestic agricultural workers in crop-wage areas where Mexican workers are employed were refined to conform to Public Law 319, which amended Public Law 78, effective August 1955. Greater emphasis now is placed on consultation with workers and employers in making the wage surveys on which the Secretary of Labor issues wage determinations. In fiscal year 1956, wage surveys were made by 13 State employment services. The Department began to issue wage determinations based on such findings on January 1, 1956. Some 238 were issued through June.
United States-Mexican Agreement Changes
Negotiations between the Governments of the United States and of Mexico during the fiscal year resulted in agreement on amendments to the Standard Work Contract, one of which, effective July 1, 1956, extended the grace period—during which a contracted Mexican worker may, with his consent, continue to be employed by the same employer without being recontracted—from 15 to 30 days; and on a code of operating instructions covering transportation of Mexican workers by employers, and the return of mentally ill and nonambulatory Mexican nationals to their country.
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Compliance
Field compliance representatives during the fiscal year made 7,233 investigations concerning employer compliance with the Mexican labor agreement and work contract, and found 3,094 violations. Complaints by employers or workers were responsible for 4,590 of the investigations, and 2,565 were sustained. Most numerous of these complaints were 721 allegations of underpayment of contract wages, of which 375 were sustained; 344 employers paid a total of $114,797.86 as back wages to 7,035 Mexican workers. Almost 150 employers were declared ineligible to contract Mexican nationals because of willful violations of their contractual obligations.
Special Program Developments
The main responsibility of the employment service is to help workers find jobs. Its task is not to run each applicant through the same standardized bureaucratic procedures, but to give each applicant the help he needs to return to productivity as soon as possible. Certain workers have greater difficulty than others in finding jobs. When these difficulties are traced to common causes, or conditions, “special” groups—older worker, handicapped, veteran, etc.—are discernible, and the steps taken by the employment service to give these groups the services they need become “special” programs. As a matter of fact, these services are part and parcel of the services offered to all applicants whether or not they fall into a special group.
The Older Worker
By 1975, more than half the population of voting age will be 45 years old or older.
During fiscal year 1956, the Bureau, with the cooperation of several State agencies, conducted a series of fact-finding and demonstration projects to determine the employment prospects for the older worker in industry, to make necessary recommendations based on an intensive study, and to establish an effective program to integrate the skills and abilities of the older worker into our expanding economy. The seven cities in which special surveys were conducted—Worcester, Mass.; Philadelphia, Pa.; Miami, Fla.; Detroit, Mich.; Minneapolis-St. Paul, Minn.; Los Angeles, Calif.; and Seattle, Wash.—were chosen because they had diversified economies, had good research facilities, and had local employment security offices known to be interested in problems peculiar to the older worker.
On the basis of these findings a program of action will be launched in the employment security system throughout the Nation during fiscal year 1957. Among some of the more important findings which point the way to important changes in the quality of services offered are:
1.	More than 40 percent of the job openings in the local offices participating in the study were closed to workers 45 and older. More than half were closed to workers over 55-
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2.	Firms employing less than a hundred employees were the least restrictive. However, most of the job opportunities were in the larger firms.
3.	The employer can be persuaded to make exceptions to established restrictive hiring practices when confronted with a qualified worker for a specific opening, but will less readily eliminate his restrictive practices altogether.
4.	The increased pension costs argument—fourth most frequent reason cited by employers for not hiring older workers—may be a myth in most cases.
5.	Intensive counseling, job development, and other “special” services can more than double the older worker’s chances of finding a job through the public employment service.
The Handicapped
Strengthened the previous year by the vocational rehabilitation amendments of 1954, the employment counseling, selective placement, and job development services for the severely handicapped began to show substantial results. During fiscal year 1956, local offices helped more than 290,000 handicapped persons find jobs. This represented a 35 percent rise in placements from the previous year.
The Veteran
Approximately 70,000 servicemen a month were separated from active military duty and returned to the civilian labor force during the fiscal year ended June 30, 1956. This is a reduction of 22 percent from the average of approximately 90,000 per month of fiscal year 1955. To speed their readjustment to civilian employment, the employment service has continued to provide an informational service to servicemen at military separation and transfer points.
Because of the reduction in separation rates, many installations have been deactivated, others activated, and still others have had their activities and mission changed. Despite these changes, about the same number of installations, 259, were given assistance by employment service representatives as in fiscal year 1955- At major installations, where the volume and type of separations justify, employment service personnel continue to provide information direct to releasees.
Veteran applications for employment in the fiscal year 1956 totaled 1,859,307—about 10 percent less than in the previous year. Job counseling interviews (total) with veterans declined 11.2 percent to 352,065. Nevertheless, the number of veterans placed in nonfarm jobs rose 13 percent to 1,568,065.
During fiscal year 1956, local public employment offices made approximately 126,000 disabled veteran placements, an increase of 27-2 percent over the preceding year and the highest placement record in 5 years. Representing only 42 percent of the handicapped male applicants, disabled veterans obtained 52 percent of the placements of handicapped males.
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Unemployment Insurance
About 42 million American workers have unemployment insurance protection under Federal and State laws administered by the Federal-State unemployment insurance program. Included are more than 39 million employees in commerce and industry covered by the Social Security Act and State unemployment insurance laws, and 2,400,000 Federal civilian employees.
Fiscal year 1956 began and ended with average weekly insured unemployment at 1.2 million—ranging during the year between 800,000 and 1.5 million.
Initial claims, representing periods of unemployment, numbered 11.7 million as compared with 13-7 million in fiscal year 1955. First payments, signifying the number of beneficiaries, declined from 5-4 million in 1955 to 4.5 million in 1956.
Due to a decrease in the duration of unemployment, the number of weeks compensated for total and partial unemployment also fell sharply, from 73-5 million in 1955 to 51-8 million in 1956, and the average weekly number of beneficiaries dropped by 29-5 percent. (See table 8, statistical appendix.) Total benefit payments decreased by 27.8 percent to $1.3 billion, including $30 million paid under the program of unemployment compensation for Federal employees.
Weekly Benefits Paid
Average weekly benefit payments for total unemployment, including dependents’ allowances where payable, rose from $25-05 to $26.33 in the past fiscal year. (At the beginning of the program in 1939, the average weekly covered wage throughout the country was $26.15.) During the past 5 years, the average weekly benefit has increased by 27-6 percent. The 1956 average represents about one-third of the average weekly wage in covered employment. (See table 8, statistical appendix.)
Duration of Benefits
Improved employment opportunities were reflected in a decrease of 2 weeks in the number of weekly benefits (from 13-6 to 11.6) received by the average insured claimant.
The number of claimants exhausting benefits in 1956 was less than at any time since 1953, and 750,000 less than the total of 1.8 million in 1955- The ratio of exhaustees to beneficiaries likewise declined from 29.4 percent to 23.0 percent.
Interstate Claims and Benefits
Along with total claims, the number of interstate initial and continued claims decreased from over 5-0 million in fiscal year 1955, to 3-7 million in the fiscal year 1956.
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Interstate benefit payments for 2.4 million weeks of unemployment in the fiscal year 1956 amounted to $65-6 million. These payments represented about 4-7 percent of all weeks compensated.
Forty-one States subscribed to the Extended Interstate Plan for Combining Wages, which became operative in the States on April 1, 1956. This plan established a system whereby a claimant who has worked in two or more States and who qualifies for less-than-maximum benefits in one State may increase his benefits by combining wages in such State with wages in other States which, considered alone, would not have qualified him for any benefits. This plan is not a substitute for the Basic (1945) Interstate Plan for Combining Wages. The basic plan is continued for claimants who are not eligible in any single State.
Unemployment Compensation for Veterans
The number of veterans who are entitled to unemployment compensation for veterans under title IV of the Veterans’ Readjustment Assistance Act of 1952 (see table 11, statistical appendix) had increased from 1.3 million in October 15,1952, to 4.6 million by June 30,1956.
Claimants under this act were paid $70 million for over 3 million weeks of unemployment in fiscal year 1956 by State agencies as agents of the United States.
The weekly average number of unemployed veterans who were paid benefits in 1956 was 57,742, compared with 88,369 in 1955. Seventy-five percent of veterans filing new claims in 1956 drew first payments, compared with 77 percent in 1955. A total of 50,383 veterans exhausted their title IV benefits in 1956 compared with 78,353 in 1955.
Unemployment Compensation for Federal Employees
During fiscal year 1956,140,000 initial claims were filed by former Federal workers, and $30,280,000 was paid in benefits for 1,234,000 weeks of unemployment. ' Weekly payments for total unemployment averaged $27.85 for those claimants whose qualifying employment was entirely Federal. (See table 10, statistical appendix.)
State Revenues, Disbursements, and Reserves
The aggregate State reserves on June 30, 1956, were $200 million above the balance at the end of the previous year.
Tax collections totaled $1,328.7 million—an increase of 16.3 percent from the previous year (see table 9, statistical appendix). This increase was due in part to higher tax rates in effect during the period in some States and to increased taxable wages stemming from higher employment levels; also, to a much lesser extent, to the extension of coverage brought about by lowering the size of firm limitations in many State laws and to the higher taxable wage base effective in Alaska and Delaware on January 1, 1955-
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Interest credited to the trust fund in 1956 was only $33,000 above the previous year—a rise of less than 0.02 percent. For the Nation as a whole, interest amounting to $186.9 million brought the total revenues to $1.52 billion—a rise of 14 percent from fiscal year 1955.
Benefit payments in fiscal year 1956 totaled $1,282 million as compared with $1,760 million in the previous year, a decline of 27.1 percent. In only 7 States were 1956 benefit disbursements greater than in the previous year.
The aggregate reserve funds available for benefit payments on June 30, 1956, amounted to $8,243-5 million—an increase of 2.9 percent from the reserve balance at the end of the previous year. In 6 States, reserves at the end of fiscal 1956 were below the levels of a year ago; but only two of these experienced a drop of more than 5 percent.
Insurance Against Temporary Disability
In 4 States—California, New Jersey, New York, and Rhode Island— workers have statutory protection against wage loss due to nonoccupational disability, as well as that due to unemployment. During the calendar year 1955, more than $214 million was paid in disability benefits under these 4 State laws.
Except in New York, the temporary disability insurance laws are coordinated with unemployment insurance and administered by the same agency. The New York law is administered by the State Workmen’s Compensation Board.
Disqualifications
In fiscal year 1956, the number of disqualifications for all reasons declined from more than 1.5 million in 1955 to less than 1.4 million (table 13, statistical appendix). Probably the most significant factor in this decline is the reduction in unemployment during fiscal year 1956.
As in fiscal year 1955, the most frequent reason for denying benefits was the claimant’s unavailability for work. In 1956, denials for this reason totaled 604,297, while 393,404 were for leaving work voluntarily. For misconduct, the number of denials was 136,667, and for work refusals it was 81,808.
Appeals
Appeals decreased in volume, along with determinations and disqualifications. During the fiscal year, 182,000 single-claimant appeals to referees were filed from 3,578,000 single-claimant determinations of eligibility involving 1,388,000 disqualifications for all issues except labor disputes. In 1955 there had been 220,000 appeals from 4,112,000 determinations and 1,579,000 disqualifications. The appeal tribunals disposed of 184,000 single-claimant lower authority appeals and a number of multiclaimant appeals, many of them involving mass claims in labor disputes.
In 1956, 17-2 percent of the referee decisions involving single claimants were appealed further to higher authorities as compared with 15-6 percent
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of the prior year. During the year, the boards of review, commissions, etc., disposed of 30,345 such appeals, 2,100 less than in the prior year.
The lower authority appeals bodies affirmed 70 percent of the appealed initial determinations, while the higher authority appeals bodies affirmed 80 percent of the referee decisions appealed to them. These ratios were the same as in the prior fiscal year.
Legislative and Program Developments
As in most even-numbered years, relatively few legislative changes were made in State unemployment insurance laws during fiscal year 1956.
On January 1, 1956, the number of protected employed workers increased by an estimated 1.6 million as the Federal and State amendments enacted during fiscal years 1954 and 1955 extended coverage to employers of 4 to 7 workers (and in 4 States, where the law already covered firms of 4, to smaller firms).
This brought the total number of workers covered by unemployment insurance to nearly 42 million. But even before these changes went into effect, insured employment had reached levels substantially above those of the preceding 4 years.
Insured employment as of Dec. 31
Year	Subject employers (reporting units)	Covered employment
1951		1, 519, 000	35, 516, 000
1952		1, 542, 000	36, 872, 000
1953		L 571, 000	36, 557, 000
1954		1, 599, 000	35, 940, 000
1955 1		i; 718, 000	37, 889, 000
1 Does not include the more than 2 million Federal employees covered after Jan. 1, 1955.
About one-fourth of the Nation’s civilian wage earners—some 12.5 million workers—remain unprotected by unemployment insurance. These are employees of State and local governments, or firms which are below the State size-of-firm provisions, or of exempt nonprofit organizations, or they are engaged in agricultural employment or domestic service.
Puerto Rico System
An unemployment insurance system for industrial workers in the Commonwealth of Puerto Rico was established by the Puerto Rico Employment Security Act of June 21,1956. The act becomes effective on January 1,1957, in regard to contributions; benefits become payable to insured workers unemployed after December 31, 1958. Pending amendment of the Federal Unemployment Tax Act to include Puerto Rico in the definition of “State,” Puerto Rico will operate an “unaffiliated” system which can be brought into the Federal-State unemployment insurance system with a minimum of change.
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Benefit Amendments
During 1956, three States—Georgia, Kentucky, and Virginia—increased the maximum weekly benefit amount. In each case, the increase in the maximum benefit was $4. Georgia and Virginia also increased maximum duration of benefits.
Including the 1956 amendments, the unemployment insurance laws in 34 States, with 72 percent of the covered workers, provide a maximum basic weekly benefit of $30 or more; 11 States, with almost 32 percent of the covered workers, provide a maximum basic weekly benefit of $35 or more (table 6). About 73 percent of covered workers live in States with maximum potential duration of 26 weeks or more.
Status of benefit amounts, including 1956 amendments
Maximum weekly benefit
Total__________________________
$40 or more________________________
$36 to $39_________________________
$35________________________________
$32 or $33_________________________
$30________________________________
$26 to $28_________________________
$25________________________________
Number of States		Percent of covered workers in States 1
Basic benefit	Augmented benefit	
51	*11	100.0
1	5	.1
2	3	14.2
8	2	17.5
6	0	19.7
17	*1	20.9
12	0	18.5
5	0	9.1
1 Percent of covered workers in States is in terms of basic weekly benefits.
2 Same maximum in District of Columbia with or without dependents’ allowances.
Status of benefit duration, including 1956 amendments
Maximum weeks	Number of States		Percent of covered workers in States 1
	Uniform potential duration	Variable duration	
Total	 	- 		14	37	100.0
			
30 .			1	0	8.2
26	.			5	22	65.0
22 to 24 ..			4	6	14.5
20— 		4	6	8.3
16 to 18		0	3	4.0
1 Percent of covered workers in States in terms of total of uniform and variable duration.
Developments in Financing
During 1956, four States adopted legislative amendments in the field of unemployment insurance financing.
Georgia increased the solvency factor required for any reduction in rates and lowered the requirements that individual employers must meet to qualify for reduced rates.
Mississippi, New York, and Virginia reduced the period of experience
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with the risk of unemployment required before new and newly covered employers may qualify for reduced rates under experience rating.
During the year, the Bureau furnished 21 States with actuarial assistance in conducting long-range benefit financing studies, developing short-range cost estimates, and evaluating and modifying tax rate structures to assure adequate yields and otherwise sound tax schedules.
Administrative Financing Act Operations
During fiscal year 1956, the first loan from the Federal unemployment account ($3 million to Alaska) was made.
At the end of the year the Treasury Department transferred the excess of Federal unemployment tax collections over employment security administrative expenditures for fiscal year 1956 ($81,030,894) to the Unemployment Trust Fund. This sum was first applied to bring the balance in the Federal unemployment account to the statutory limit of $200 million. The remainder, $33,386,068, was credited to the States’ accounts (see table 14, statistical appendix).
Tax collections during fiscal year 1956 were abnormally high, due to an amendment to the Federal Unemployment Tax Act which eliminated quarterly installment payments of the Federal tax beginning with the taxes due on January 31, 1956, on federally taxable wages paid during calendar 1955-As a result of this change, about $40 million which would have been paid in fiscal year 1957 on calendar year 1955 wages under the previous law was collected during fiscal year 1956.
In anticipation of the distribution of excess Federal tax collections among the States, Arizona, Kentucky, and New York took legislative action to utilize these funds for employment security activities.
Supplemental Unemployment Benefits
As of June 30, 1956, an estimated 1.5 million workers were covered by supplemental unemployment benefit or by “ income security” type collective agreements with approximately 160-175 individual employers.
The Ford-General Motors type of supplemental unemployment benefit plan involves a pooled irrevocable trust fund from which a worker may draw funds only during layoff. These are generally payable for weeks in which the worker is eligible to receive State unemployment insurance.
In the “income security” type plan, an individual account is set up for each worker from which he may draw benefits for periods of layoff or illness and, upon termination of employment, may withdraw the balance in his account. There is generally no tie-in with State unemployment insurance.
By the end of the fiscal year, 26 States had issued rulings or taken legislative action regarding the relationship between unemployment insurance and the supplemental unemployment benefit or “income security” plans.
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Supplementation of State	unemployment benefits under SUB plans permitted (20 States)
Arkansas California Connecticut Delaware District of Columbia Florida Georgia 1 Illinois Kansas Kentucky	Michigan Minnesota Missouri New Jersey New York Oklahoma Pennsylvania Tennessee Washington Wisconsin
Supplementation of State unemployment benefits under SUB plans not permitted (4 States')
Indiana	Ohio
North Carolina	Virginia 1
Supplementation of State unemployment benefits under “ income security" type plans permitted (2 States')
Michigan West Virginia
Program Planning Activities
Various activities were undertaken during the year to increase the Bureau’s knowledge of the program’s operation, its effect on individuals and its role in society, and thereby to provide a sound factual basis for program development and improvement.
An outline and study guide was developed to help States study the experience of claimants following the exhaustion of their benefit rights. Postexhaustion studies were started in 18 States.
A pilot study was completed on the role of unemployment compensation payments in the total economic experience of the families of beneficiaries.
Legislative planning for next year was discussed at regional conferences attended by State agency administrative and research staffs. The objectives of the program, the underlying principles of an adequate employment security program, and the kind of research needed to evaluate existing programs and proposed changes were explained.
Benefit Payments Control Program
The Bureau continued its expanded program for the maintenance of closer controls over benefits as a defense against fraud and other types of incorrect payments. Primary emphasis is placed on prevention rather
!By action of the legislature.
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than on fraud detection, imposition of penalties, and recovery of overpayments.
Among other activities, the Bureau sponsored a series of regional conferences on benefit payments control during the fiscal year to stimulate State planning and action in developing well-balanced programs for the prevention and detection of incorrect payments.
Thirty-five States completed benefit payment surveys conducted according to guides prescribed by the Bureau to evaluate the effectiveness of their detection and prevention procedures. The findings will be used as a basis for further recommendations for the prevention of improper payments.
Manpower Measures for Defense Readiness
The possibility of war—what with the development of hydrogen bombs, and radioactive fallout that can spread hundreds of miles downwind from the point of explosion—is one we would all like to reject, but which we all must face. One thing seems certain: the effective use of manpower immediately after attack could well mean national survival.
The Responsibilities
The Federal Civil Defense Administration and the Office of Defense Mobilization, conscious of the importance of the speedy redeployment of manpower, have delegated to the Department of Labor the responsibility for planning the programs which will assure the maximum use of our national manpower resources.
Under the specific redelegations to the Bureau of Employment Security, the Federal-State employment security system which it administers must be prepared from the moment of initial warning, to:
1.	Determine civil defense manpower needs, and recruit and refer workers to meet these needs.
2.	Recruit, expand, and assure the efficient mobility of manpower to meet defense and essential civilian labor needs.
3.	Develop and administer, through existing State systems, a program of income maintenance during periods of idleness under attack or full mobilization conditions.
4.	Estimate local manpower availability and shortages; identify the number and occupations of workers needed by continuing defense and essential civilian needs; and provide area labor market information for operational use, and for use in the central bomb damage assessment system.
During fiscal year 1956, the Bureau of Employment Security gave major attention to the development, coordination, and operation of these manpower mobilization programs at the national and regional levels.
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The Direction
The regional directors of the Bureau serve as regional directors of the Department’s Office of Manpower Administration.
The State employment security agencies serve as the State manpower agencies.
Bureau regional directors represent the Department of Labor on the Regional Mobilization Committees established by the ODM for coordination of governmental defense activities.
In seven regions the Director of ODM designated the OMA-BES regional directors as acting ODM regional coordinators, and as chairmen of the RMC’s.
The OMA-BES regional directors served during the latter part of the year on regional operations boards established by the FCDA to plan and carry out regional civil defense functions in an emergency.
The Exercise
The national office developed test problems for use during Operation Alert 1956 in order to test readiness planning and capability for postattack manpower operations in regional, State, and local offices. These problems were concerned with:
1.	How to estimate survivors and their availability for work; labor shortages and supply; and labor supply in support areas.
2.	How to assure the efficient use of the surviving work force.
3.	How to set up a system of income maintenance for members of the work force unemployed because of enemy action.
The Income Maintenance Plan
Four State employment security agencies cooperated in a test of the emergency income maintenance program. This program has as its purpose providing financial assistance in disaster areas, or in other areas where unemployment is created by enemy attack.
Approved by the Labor Advisory Committee, this plan grants financial assistance on the basis of readiness and willingness to work rather than on need. It would be administered as a Federal program by the State employment security agencies.
Basic Data and Research
In addition to the reporting procedures developed to meet the specific needs of Operation Alert 1956, work progressed on an Area Manpower Guidebook which will contain basic labor force data on the major labor market areas of the Nation.
Research on methods of estimating surviving labor force and their availability was continued during the year, and a method for estimating daytime and nighttime population in target areas was developed.
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’’Task Force” Plan
During the latter portion of fiscal year 1956, the Bureau placed major emphasis upon the development of a long-range plan for the organization and training of groups of workers in civil defense skills, ready and equipped to swing quickly and efficiently into action when an emergency arises.
The plan for “task force” groups was presented to the Labor Advisory Committee on Civil Defense and the Manpower Policy Committee of the Office of Defense Mobilization. It envisages industrial and commercial organizations in the community assuming responsibility for specific civil defense functions and preparing selected personnel to carry them out at the time of an attack. Details of this plan will be completed during fiscal year 1957, and a trial run will be made in selected cities.
In order to develop a “task force” it is necessary to identify and describe key civil defense skills. A study of the key skills required by a State civil defense organization was undertaken jointly by the New York civil defense organization and the New York State Employment Service.
Related Responsibilities
The fundamental task of the employment security system is, and will remain, that of helping workers find jobs and providing them with unemployment insurance protection. In doing this job, the system has direct contact with hundreds of thousands of workers and thousands of employers each day. It was inevitable that this channel of communication between people and Government should be used for purposes indirectly related to the main task. Legislation of each of the last four Congresses has resulted in added responsibilities being placed on the employment security system. These responsibilities range all the way from making determinations which affect the granting of Government contracts in one labor market or another to lending employment security experts to foreign nations to help them develop their own employment security systems.
Labor Market Information
Every transaction that takes place in the local employment office involves the giving or taking of labor market information. During fiscal year 1956, as in previous years, all units of the Federal-State employment security system were called upon to meet the many requests for this information in many forms.
Requests were made by members and committees of Congress, executive offices and the White House, other Government agencies, universities and research associations, employers and unions, and the general public. They covered a broad range, including labor market developments in specific areas, on specific occupations, and in numerous industries Information was supplied by local and State offices and by the Bureau staff. The
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Bureau’s regular reporting programs provided the material for answering the bulk of the requests.
Labor Surplus Area Programs
The Federal Government’s programs 1 for helping areas of labor surplus are all tied to the Bureau’s area labor market classifications which are based on local economic intelligence obtained through the employment security system.
Six bimonthly releases (and one interim) classifying 149 major areas and between 65 and 100 smaller centers according to relative adequacy of labor supply were issued during fiscal year 1956.
Overall national analyses of the area labor market situation and outlook, tracing the varying impact of employment and unemployment developments upon different areas and summarizing area employer hiring intentions, were prepared and issued as part of each bimonthly classification release.
In July 1955, amendment No. 1 to Defense Manpower Policy No. 4 extended preference in Government procurement to areas with substantial unemployment that are too small to be included in the Bureau’s area classification program. Sixteen certification reports for smaller areas were prepared by State agencies and reviewed in the national office during the year.
A large number of special studies and analyses of labor surplus areas were made in connection with the new administration program (as incorporated in the Smith bill, S. 2892) and similar legislation introduced by other Members of Congress to assist areas with substantial and persistent unemployment.
Farm Labor Market Analysis
Employment trends in the 275 major farm labor market areas were summarized in the publication Farm Labor Market Developments, issued during the 8 months when farm activities were greatest.
In 106 areas where shortages of farmworkers were expected to develop, analyses of the factors affecting the demand and supply of seasonal farm labor for periods as much as 6 months ahead were prepared. Trends in production, technology, marketing practices, developments in the nonfarm labor market, availability of housing, recruitment efforts by the public employment service, and other factors affecting either the requirements or supply of labor were reviewed. These analyses were used as a basis for determining the number of foreign workers who could be employed in the area without adverse effect on the employment opportunities of American labor.
1 ODM's Defense Manpower Policy No. 4; ODM’s extra accelerated tax amortization program; Executive Order 10582 establishing uniform procurement procedures under the "Buy American” Act; Navy Department’s "Community Production Clinics,” etc.
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Characteristics o£ the Insured Unemployed
Detailed information on the personal and economic characteristics of unemployed persons filing claims for unemployment insurance was made available for the first time on a regular monthly basis in fiscal year 1956. Based on a nationwide 1-percent sample of all claimants for unemployment insurance in all local offices in continental United States, this information is designed primarily to aid in the development of national policies and programs for dealing with unemployment.
The first report was published as a monthly departmental release entitled “Characteristics of the Insured Unemployed” on May 2, 1956. Since that date, reports have been issued each month analyzing the characteristics of the insured unemployed according to industry, occupation, age, sex, duration of unemployment, marital status, etc., as well as of exhaustees and those disqualified from benefits.
Industry Manpower Studies
Employment trends and outlook, manpower problems, and job opportunities in nine key industries (broad woven fabric mills, lead and zinc mining, aircraft and parts manufacturing, shipbuilding and repair, furniture manufacturing, household machinery manufacturing, machine tools, communications equipment manufacturing, and steel) were analyzed. Special analyses were prepared on four industry problems of immediate significance—bicycles, woolen and worsted manufacturing, optical goods, and copper.
Job Guide for Young Workers, 1956-57 Edition
A new edition of the Job Guide for Young Workers, one of the Bureau’s most popular publications, was prepared. The 1956-57 edition contains descriptions of 110 occupations which are frequently held by young people after completion of high school. It also contains a section entitled “ Introduction to the World of Work” with some helpful tips to young people about to look for jobs, as well as the “Job Outlook” for the coming year. All local offices of the employment service were supplied with sufficient copies to permit sample copy distribution to secondary schools throughout the country.
Technical Publications
The Bureau continued to issue its two magazines, Employment Security Review and Labor Market and Employment Security, each month. Special topics or “themes” were presented in 10 issues of the Review. Of special interest was the 20-year history of unemployment insurance in the United States (a companion piece to the 20-year history of the United States Employment Service which appeared in 1953) issued in August 1955-
407351—57----8
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Admission of Aliens
Under agreement with the Immigration and Naturalization Service, the Bureau certifies the nonavailability of American workers for jobs to be filled by alien workers requesting entrance as first-preference immigrants or as nonimmigrants.
In fiscal year 1956, availability searches through clearance were conducted in connection with 1,814 employer requests for 4,028 workers. This was a rise of 73 percent for both employers and openings over fiscal year 1955. With respect to workers entering as nonimmigrants, the 714 requests from employers involved 3,771 workers, rising 69 percent over fiscal year 1955 as regards openings, and 15 percent as regards numbers of employers.
In addition, availability searches were made as a condition for the entrance of some 9,000 Canadian workers for employment in timber operations in the New England States.
Refugee Program
The employment service also assists in carrying out the provisions of the Refugee Relief Act (Public Law 203, 83d Cong.). During fiscal year 1956, it certified 37,178 stateside job orders as bona fide, making a grand total of 105,682 from the beginning of the program.
More than 50,000 refugees were interviewed overseas. A total of 48,425 Europeans were found to be qualified to perform the duties shown on the job orders. In the Far East, approximately 3,000 persons were so certified.
During the reporting period, the employment service verified the employment status of 21,680 principal wage earner refugees who arrived during the period. Sixty-five percent of those who have arrived entered employment satisfactorily on the jobs which had been assured them.
Critical Occupations and Essential Activities
A Department of Labor List of Critical Occupations for Screening the Ready Reserve was completed in January 1956 by the Interagency Advisory Committee on Essential Activities and Critical Occupations. This list of 81 occupations is based on full mobilization conditions and will be used by the Department of Defense in transferring to the Standby Reserve men in the listed skills in excess of the requirements of the Ready Reserve.
The Reserve Forces Act of 1955 and Executive Order 10650 also provided for a special 6-month enlistment program in the Ready Reserve. The Department of Commerce List of Currently Essential Activities and the Labor Department’s list of currently critical occupations, as amended by ODM for this program, are being used by the Selective Service System to select men for this special 6-month program.
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International Labor Activities
The Bureau continued to give technical consultative assistance to other governments and international agencies, and to give training in the employment security programs to foreign officials, to International Labor Organization fellowship holders, to International Cooperation Administration participants, to United States Department of State leaders, and to international visitors.
During the year, the services of Bureau staff were made available to Chile, Greece, Costa Rica, Indonesia, Israel, Peru, Iran, and India. Visitors and trainees whose itineraries and training were the principal responsibility of the Bureau came from Japan, the Philippines, Turkey, Iran, Peru, France, Germany, Chile, and Pakistan. Some 20 State agencies and scores of local offices cooperated with the Bureau in making their training fruitful, as did countless private organizations. An illustrative list of these includes the AFL-CIO; IBM Training School, Endicott, N. Y.; American Statistical Association; General Electric Corp., Schenectady, N. Y.; New York University; Bell Aircraft, Buffalo, N. Y.; St. John’s College, Annapolis, Md.; Amalgamated Clothing Workers; National Association of Manufacturers; Temple University, Philadelphia, Pa.; Marshall Field, Chicago, Ill.; Spiegel Mail Order House, Chicago; Stanford University; Retail Clerks Local Union of Los Angeles; and Douglas Aircraft, Los Angeles.
In addition to these, training supplementing that given by other agencies and bureaus and the Office of International Labor Affairs was given to 419 participants from the ICA, United States Department of State, United Nations, ILO, United States Department of Defense, as well as to 94 casual visitors.
The Bureau international labor specialist served as alternate Department of Labor member on the Interdepartmental Trade Agreement Committee and the Interdepartmental Committee for Reciprocity Information.
Studies were made by the Bureau to serve as a basis for recommendations by representatives on these committees and the representatives of the Department of Labor at the Geneva meetings in the negotiations in connection with the General Agreement of Tariffs and Trade (GATT).
Manpower statements portraying the supply and demand situation and the defense manpower program were prepared for the Organization on European Economic Cooperation and North Atlantic Treaty Organization; also, special papers on the “Employment of Older Workers’’ and the “Employment of Younger Workers,” were prepared for these organizations.
Federal Advisory Council Recommendations
The Federal Advisory Council reviewed progress in the improvement of the employment security system and adopted reports on veterans’ employment problems and on the employment of handicapped workers.
Ill
Veterans’ Employment Problems
A committee of the veterans’ representatives on the Council reviewed the Veterans’ Employment Service Program and the Program of Unemployment Compensation for Veterans and recommended:
1.	That the Council initiate an immediate study to determine whether a permanent system of unemployment compensation should be created for all veterans.
2.	That a determination be made on the amount of expansion that should be requested for the Veterans’ Employment Service.
3.	That serious and coordinated efforts be made to implement and integrate the agreement on relationships between the Veterans’ Administration and the employment service at the local level.
Handicapped Workers
The Council adopted a report of a committee on the employment problems of handicapped workers. The report discussed the problems of:
1.	Getting employers to use the preemployment examination as a means of fitting the handicapped to jobs they can successfully perform.
2.	Improving workmen’s compensation laws and their administration and second-injury laws, so that employers are not deterred from hiring handicapped workers.
3.	Studying the effect of “fringe benefits” on the employment of the handicapped.
The report recommended:
1. That the employment service collect more adequate statistics on the employment of handicapped persons.
2. That the Bureau encourage State employment security agencies to secure adequate salary classifications for specialists in the employment of the handicapped and provide adequate training for them.
Supplemental Unemployment Benefits
The Council discussed the effect of supplemental unemployment benefit plans on the unemployment insurance program. It agreed that the employment security system should furnish information needed by claimants to obtain supplemental unemployment benefits. It also agreed that the Bureau should not be deterred from approving expenditures on any method or technique approved by the Bureau as necessary for proper and efficient administration of employment security, merely because the adoption of the method was prompted by supplemental unemployment benefits arrangements. The Council deferred for further consideration such questions as whether special information should be given to the administrators of supplemental unemployment benefits which was not made available to claimants.
112
Extension of Coverage
The Council agreed that Federal legislation should be enacted:
1.	To provide for a permanent program of unemployment compensation for ex-servicemen.
2.	To extend coverage to employers of one or more persons.
3.	To broaden the Federal definition of “employee” by applying the “ABC” test as to direction and control of the worker which is now in the majority of State laws and to apply this test to insurance agents, newsboys, and news vendors now specifically exempt.
The Council also agreed that there should be extension of coverage to employers of four or more domestic servants in a home, college fraternity, or club.
The Council endorsed the recommendations of the President and Secretary of Labor that the States extend coverage to State and local government employees. It deferred for further study extension of coverage to nonprofit organizations, domestic servants in general, and agricultural workers.
Court Review
The Council considered the question as to whether there should be court review of the Secretary of Labor’s decisions on conformity and compliance issues. It expressed concern at the delaying effect of court review and suggested that consideration be given to shortening the conformity process prior to the Secretary’s finding, and expediting judicial review. It expressed concern over the severe penalties that fall on both employers and employees if a State is found out of conformity and recommended that the Department explore the possibility of lesser sanctions or penalties which could be be invoked in cases of nonconformity. Finally, the Council expressed the belief that when a State is appealing from a finding of the Secretary of Labor, the rights of employers to tax credits and the rights of workers to benefits must be protected pending a final adjudication.
Annual Wage Reporting
A committee of the Council gave detailed consideration to the problems that would be created for unemployment insurance should legislation be enacted providing for combined annual wage reporting for old-age and survivors’ insurance and income tax purposes.
The committee’s report, adopted by the Council, recommended that the Secretary of Labor take positive action to safeguard the unemployment insurance program from any adverse effects of a change to annual reporting for old-age and survivors’ insurance purposes. The report expressed the belief that States should be discouraged from adopting annual wage reporting as the sole basis for determining eligibility, weekly benefit amount, and duration for unemployment insurance. The report discussed the
113
alternative of the States’ adopting a “request reporting” plan under which wage information would be secured from the employer only after layoffs, and recommended a number of safeguards that should accompany the adoption of request reporting.
Statistical Appendices
Table 1.—Selected employment service activities by State, fiscal years 1954-56
State and Territory	New applications 1	Counseling interviews		Total referrals	Total placements	Employer visits
		Total	Initial			
1953-54		8, 845, 818	1,164,170	696, 684	18, 596,024	14, 820, 330	1, 646,233
1954-55 		8. 467,057	1,414, 754	849,016	18, 601,955	14, 527, 897	1,704, 413
1955-56		8,083.024	1,444, 669	846,144	20,108,905	15,422,143	1, 719,891
Alabama		132, 207	11, 924	8,073	276,399	186,148	44,157
Alaska 		15,802	1,844	1,101	18, 434	10, 753	2, 769
Arizona 			77,305	10, 541	6,837	866,116	790,952	24,932
Arkansas	 			112,196	15,118	8, 028	567, 524	548, 299	30,107
California	 -	807, 856	107, 446	67, 871	1,766, 438	1,217, 224	135, 888
Colorado 			79,732	16, 481	11,305	291,073	225,214	26, 253
Connecticut			145,835	22, 111	12,706	224,373	118,311	15,065
Delaware 		______	14,494	5, 655	2,598	24, 775	17,754	3,692
District of Columbia			48,544	11,151	5,396	61, 621	36,947	2,109
Florida 			147, 848	21,406	13,100	505,980	378.343	57,160
Georgia			 			167, 659	20, 321	13, 654	379, 833	298,386	59, 221
Hawaii __			-	20,761	2,983	1, 631	22, 745	10, 461	3,377
Idaho 			39,368	7,209	3,651	256, 048	221, 506	16,199
Illinois		342,913	68,008	38, 611	500,097	362, 488	60,563
Indiana				204,576	27,162	16, 778	301,133	189, 591	31, 670
Iowa _ 		97,935	16,112	9,328	157,298	124,915	20,138
Kansas _ 				87, 692	11,910	6,959	165, 761	121,252	30, 312
Kentucky 				122, 632	29, 652	19, 436	213,103	175, 854	17,413
Louisiana	 		118,367	17,178	9,575	276,426	231,178	20,200
Maine			26,508	7,631	3, 869	96,944	73,828	10. 778
Maryland		109, 235	27,034	17, 381	229, 811	164,790	21,962
Massachusetts				198,937	47,526	26.038	461, 920	269,271	64, 961
Michigan 			471,076	77,744	48, 390	479,583	307,007	33, 254
Minnesota		145,923	17,158	9,152	195,035	174,163	32, 697
Mississippi			106,236	14,121	7, 952	1,616,447	1, 552,471	36,272
Missouri		220,210	33,035	17,319	424, 715	334, 604	32,953
Montana				43, 641	6,714	4,216	87, 072	68, 787	29,181
Nebraska 		59,358	12,458	5, 585	111,615	98, 371	24,536
Nevada		26,956	2,349	1, 700	48,462	35,329	5,721
New Hampshire			24,248	5, 688	3, 912	42, 642	23,085	5, 848
New Jersey	 - -	218,529	29,155	17, 267	394, 757	288,078	32, 986
New Mexico			46,375	5,964	3,269	94,224	67,042	14, 013
New York 		815, 307	148. 791	94,273	1, 470,609	971,316	119,207
North Carolina		193,222	28, 660	16,758	623,329	504,116	55,781
North Dakota			27,216	4,069	2,531	63, 645	44,100	8,082
Ohio			481,906	115, 655	67,992	725, 273	503,616	103,151
Oklahoma		88,439	21,889	12,023	304,798	230, 617	49, 064
Oregon . 		88,476	16,946	9,575	478, 622	440,485	28,078
Pennsvlvania			486,051	110,913	64,328	732,086	461,151	54,465
Puerto Rico		91,062	13,857	5, 515	81, 710	40, 867	8,102
Rhode Island		47, 540	12, 713	4, 692	49, 855	22,348	3,278
South Carolina		96, 747	15,274	10,962	264. 706	200,050	46,399
South Dakota.			22, 654	2,876	1,511	40, 905	28,349	5,649
Tennessee			122, 698	29,308	18, 583	1, 214, 792	1,121, 593	37,194
Texas 				509,958	87, 462	46, 873	1, 639,585	1,188, 708	130, 645
Utah 		48,280	10,250	7, 370	102,136	73,265	12,193
Vermont		14,770	2,297	1,312	40,995	23, 994	9, 785
Virginia		110,352	41,303	21,823	241,021	188,371	23,385
Virgin Islands		1,570	563	345	5,016	3,199	364
Washington	 		136, 217	27, 216	12,459	469, 726	370, 991	28, 566
West Virginia		60,811	12,641	7,464	59,096	41,550	4,773
Wisconsin		141,555	26,492	14, 548	301, 827	210,016	32,228
Wyoming		17,239	4,705	2,519	40,769	31,039	13,115
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.
114
Table 2.—Selected nonagricultural activities by State, fiscal years 1954-56
State and Territory	Referrals	Placements	Employer visits
1953-54		9, 237,165	5, 520,006	1, 225, 567
1954-55	 		9i 310, 527	5, 536, 225	1,260, 031
1955-56			 Alabama		 		10,501, 736 180, 639	6,173,684 98,105	1, 259, 567 29,352
Alaska		18, 267	10, 665	2, 754
Arizona	 			99, 918	59, 638	15,300
Arkansas ..						134,185	75,425	21, 919
California		952,136	474, 708	97, 842
Colorado	 	 ..	137,082	88,903	14, 278
Connecticut			211,961	106, 088	12, 755
Delaware		 -		17. 239	8,607	2,790
District of Columbia			61. 545	36, 900	2,109
Florida	 		334,308	221, 261	39,422
Georgia 	 _	210, 404	134,146	37, 927
Hawaii		20, 558	9,147	2,301
Idaho		__ -		70,459	42,333	9, 299
Illinois			364, 893	237,927	51,401
Indiana	 		202,394	94; 820	28,842
Iowa ... 	 		122,132	79, 209	17, 252
Kansas .	_ 	 		136, 415	93.157	21, 855
Kentucky		. 	 		98,350	55,976	12, 266
Louisiana	 				148 J 46	99; 776	16, 013
Maine	 		47, 860	27,423	7,828
Marvland	 		142,870	78,608	19,157
Massachusetts	 		397, 831	212,264	46, 515
Michigan		336, 867	167, 668	15, 942
Minnesota . 				 		167, 004	111, 882	30, 585
Mississippi				142, 267	89, 662	24,412
Missouri. 					178,638	95,302	27,072
Montana			51,952	35, 644	18.302
Nebraska	 		86,462	64, 829	19,343
N evada		 		37,342	24, 714	4,600
New Hampshire	_	_ _ _ 		 		38, 591	19, 002	5,358
New Jersey 					240, 574	130, 280	22.483
New Mexico	 	 		55^ 362	39,119	8,803
New York 		1,314,366	816, 040	106, 336
North Carolina. ...	 			 		' 243, 945	159,694	26,180
North Dakota				 _ _	45, 212	22; 146	5,274
Ohio				 				 _. 		544, 386	332; 789	72, 213
Oklahoma						217,479	15i; 473	38,045
Oregon .				 				122,342	78,379	18, 823
Pennsylvania	 			541,687	273, 960	46, 677
Puerto Rico 			 		55,384	32,413	6, 729
Rhode Island		 . _ 		49; 331	21,912	3, 210
South Carolina			 .		140,127	85, 708	28, 481
South Dakota	 	 		31,497	19, 498	4,460
Tennessee			197, 266	115, 594	25,321
Texas	 	 		869, 971	545, 637	97, 590
Utah 		 _ 		70,141	40,244	8,087
Vermont			30,399	15, 824	4, 267
Virginia. .. 			131, 245	84, 002	19,105
Virgin Islands				4,950	3,183	342
Washington		167, 632	95,707	22, 387
West Virginia	 .	48, 468	27, 973	4, 315
Wisconsin		 				204,119	110, 223	27,285
Wyoming		26; 838	18,097	8,363
115
Table 3.—Selected agricultural activities by State, fiscal years 195^-46
State and Territory	Referrals	Placements	Employer visits
1953-54			9,358,859	9,300,324	420,666
1954-55	_ _ _				9,291,428 9,607,169	8,991, 672	444,382
1955-56		 			9,248,459	460,324
			
Alabama			95,760	88,043	14,805
Alaska 	 -- —	167	88	15
Arizona	__ 		766,198	731,314	9,632
Arkansas _ _ _ _ 		433,339	472,874	8,188
California	_ _ _ _ _______ ____________	814,002 153,991	742,516	38,046
Colorado 			136,311	11,975
Connecticut	- - - - 	 - - 		12,412	12,223	2,310 902
Delaware -	___________	_ 		7,536	9,147	
District of Columbia	_	__ 		76	47	
Florida 	_ _ _		- ----- -		 - -	171,672	157,082	17, 738
Georgia	_	_		 - 	 -	169,429	164,240	21,294
Hawaii 		2,187	1,314 179,173	1,076
Idaho	- -	_- ---------- 			185,589		6,900
Illinois	-	- - -	- - ------ - - - _ -- - -	135,204	124, 561	9,162
Indiana	- -	- 	 		98, 739	94,771	2,828 2,886
Iowa	- -	-	_	__	_____________	35,166	45,706	
Kansas						29,346 114,753	28,095	8,457
Kentucky						119, 878	5,147 4,187
Tjouisiana	_ _	_ ____ 		 ______	128,280	131,402	
Maine	- -	-	- 		49,084	46,405	2,950
Maryland	- -	__ 	- 	 - -	86,941	86,182	2,805
Massachusetts_________ 	 - -	____	64,089	57,007	18,446
Michigan 				142, 716	139,339	17,312
Minnesota 	-	-	______ 		 - 		28,031	62,281	2,112 11,860
Mississippi -	- - - 		1,474,180 246,077	1,462,809	
Missouri 	_	_ 	 _______		239,302	5,881
Montana	- _	_ _ 			35,120	33,143	10, 879
Nebraska	_ _ 	 _______	25,153	33,542 10,615	5,193
Nevada	- 		11,120		1,121
New Hampshire	- - 	 -	--	4,051 154,183	4,083	490
New Jersey -	- 	 			157, 798	10, 503
New Mexico	_ 					38,862	27,923	5,210
New York	-	______ 	 ______	156,243	155,276	12,871
North Carolina	_				__ - -	379,384	344,422	29,601
North Dakota	_ _					18,433	21,954	2,808
Ohio	_ _	__________		 _	180,887	170,827	30,938
Oklahoma	-		__ 	 		87,319	79,144	11,019
Oregon		- 		 		356,280	362,106	9, 255 7,788
Pennsylvania _ _ - _ 		 _ _ _ _ 			 - -	190,399	187,191	
Puerto Rico	_ _ ________ ______ _	26,326	8,454	1,373
Rhode Island	- - ______ 	 			524	436	68
South Carolina	- -	 			124, 579	114,342	17,918
South Dakota	_			9,408	8,851	1,189 11,873
Tennessee	- - - 		1,017, 526	1,005,999	
Texas	- - 	 ________	769,614	643,071	33,055
Utah	-	_ 			 _ 		- -	31,995	33,021	4,106 5,518
Vermont	_							10,596	8,170	
Virginia	_ 	 -	109, 776	104,369	4,280
Virgin Islands	_ _ 	 ______ __ _	66	16	22
Washington			302,094	275, 284	6,179
West Virginia	- 		10,628	13,577	458
Wisconsin	-	- 		97,708	99,793	4,943 4,752
Wyoming	_ _ 		13,931	12,942	
			
116
Table 4.—Selected activities showing services provided veterans, fiscal year 1956
	1956	Percent change from fiscal year 1955
New applications	 Men		8,083,024 4,872,632 1,859,307 38.2 6,173,684 3,582, 787	-4.5 -7.2 -11.0 +11.5 +15.2
Veterans	 _				
Percent veterans of men... Nonagricultural placements:... Men			
		
	1956	Percent change from fiscal year 1955
Veterans	 .			1,568,065 43.8 846,144 524,499 199,186 38.0	+13. 50
Percent veterans of men... Initial counseling interviews.. Men						
		-.3 -2.4 -14.7
Veterans 	 			
Percent veterans of men...		
		
117
'able 5.—Coverage under State laws: Size of firm provisions; number of employers and workers, by State, December 1955; and estimated number of workers added by change in State laws effective as of Jan. 1, 1956
118
119
Table 6. Significant benefit provisions in State unemployment insurance laws, Aug. 1, 1956
S8S388§oS888888oo8S8g88S«88o888o888R8S8 fH CM i—oi>^-it~aswt~ioooo»oioiooooeo ©ocat^ggoog e	
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122


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123
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124
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126
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127
Table 10.—Selected data on unemployment compensation for Federal civilian employees1 by State, fiscal year 1956
a a © 3 S	UCFE only	$27.60 27.85	SSSSfcSSSSSgSSlSSgSSSgSSSSlSSiSSSSJSgSSSSS
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		$16, 30,	CO	r-T	rH	r-< Cl
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	Cl Tt< Cl 00	sg§BI§§£8gm§S§E§§8j5iSsg8§sSI§§§m
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128

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129
Table 11.—Selected data on unemployment compensation for veterans program, by State, fiscal year 1956
Claimants exhausting benefits	Ci CO CO			CT	v-T	r4*r4'	CM	CM r-4	r-4	Hr-T v-4																
Amount of benefits paid *	$24, 590,888 74, 477, 924 106, 916, 550 70, 095, 925			Qi*	t-4'Q'T	r-Tr-T	r-4 r-T	CMr-T	HC4HHN	r—<	CO CM v-4																
Weeks compensated	1, 023, 875 3, 223, 925 4, 608, 558 3, 014,083			IsiasSESgSSssssSsSsEsSsigEESsSSslSSli g-'gMgSS^sf«sfrifS' -Troo-rHcf	tfT^cfcio'ofT-TcfafarKrro'ar w	rfrrgo'rtV																
New claims	170, 285 348, 373 368, 999 272, 111			o' cq^mofco	w-# rto'aT^o*																
Estimated number of eligible veterans In civilian life as of June 30 1	§§§§			88g8ggg8g§gggg|§8888S8S8ggg||§88g88g g‘*SgjfSggSgfSSggiiggeS«ggSSgS<’'tfgsfggsig																
Year and State	1952-53	 . J		itwi-oo.....	...	......			...		 . ...	... .	.. 			 1955-56.	      J	<			v^aiiiuiuia,								 i Colorado										ounuecbiuui	 Delaware						Florida	     _	   1	vreuigia	 Hawaii								lUdllU		 _	1 Illinois			11	i		ll Ils	hi	if	ih	5^^;	ill 5ZO
130
131
■f
1 I
I 1
[cations by issue	Refusal of suitable work	§SWS8*S	O W	>O	rtrt-tfeiWrt
	Not able or not available	ssssss	gSgagggssSsSSiSsssi^SsgssgsSS ciWrHcfgw-o ^VwwVgWNHR.oioVgX^V
	I		£gg’gsS’g2§§g8§gfegg§?§sgg$6sS3§ ci	w-u,-	rHrtUS	tCcortrtcfcf ^rooo'NrH-^	■*
	Voluntary quit		g§gg380ig§388gss8s8S§SSS§SSsS§5 rC cira««V rtcfror-T aTodociw® ro® rogocigcfU' cf^'
s	Per 1,000 claimant contacts	OO )	1952		201	(*)
1955		262		1951		181	(*)
1954		247		1950			149	(')
1953					231				
1 Figures not available.
Sheltered workshops are non-profit organizations which, in addition to other services, provide remunerative employment to handicapped persons
213
who, because of their disabilities, are unable temporarily or permanently to secure and hold jobs in regular competitive industry. A single workshop certificate covers all the shop’s handicapped workers who are unable to earn the statutory minimum wage.
The foregoing figures show only the number of handicapped workers employed as of the application date. Workshop officials estimate that over 70,000 handicapped workers were employed in these workshops during the year. The more effective rehabilitation techniques of the past 2 or 3 years coupled with the campaign of the President’s Committee on Employment of the Physically Handicapped have enabled workshops to channel increasing numbers of their workers into regular industry.
The Advisory Committee on Sheltered Workshops, which is composed of representatives of workshops, labor, management, and the general public, continued its functions throughout the year of advising the Administrator of the more important advances in the field of rehabilitation that had a bearing on workshop certification procedures under the acts and in making recommendations concerning the administration of these laws as they relate to non-profit workshops.
Consultation Service:—An important continuing function throughout the year has been that of providing consultant service to various local and national governmental and nongovernmental organizations which provide rehabilitation services to handicapped persons. The work includes participating in special related conferences of national scope, forum discussions, and sectional meetings. This educational approach has materially helped in securing a high degree of compliance with the provisions of the acts and in imporving working conditions for handicapped workers in non-profit workshops.
Wage Order Program in Puerto Rico and the Virgin Islands
The Fair Labor Standards Act contains special provisions for the establishment of minimum wages for industries in Puerto Rico and the Virgin Islands upon the recommendation of tripartite industry committees. These provisions were first enacted in 1940, after it had become apparent that many industries in those Islands were unable to adjust to the minimum wage standards established for the mainland.
The 1955 amendments made substantial changes in the procedures for the setting of minimum wage rates for the Islands. Commencing July 1, 1956, minimum wage rates for these areas are to be reviewed by industry committees at least once each fiscal year.
In addition, the authority of the Secretary of Labor to approve or disapprove minimum wages recommended by industry committees was eliminated. The act now requires that an industry committee file a report with the Secretary, containing its findings of fact and recommendations. The Secretary must publish these recommendations in the Federal Register and provide by order that they become effective upon the expiration of 15
214
days from the date of publication. The amendments require that due notice and opportunity shall be given for hearings before industry committees, eliminating hearings before the Secretary of Labor or his authorized representative. The provisions for court review of wage orders were modified in accordance with the new procedure. These sections of the new law became effective August 12, 1955, the date the President approved the amendments.
Pursuant to these provisions and to the statutory mandate that Island rates be raised to the $1 minimum as rapidly as economically feasible, the Administrator convened 5 industry committees for Puerto Rico and 1 committee for the Virgin Islands during the 1956 fiscal year. A total of 19 wage orders giving effect to industry committee recommendations were made effective. These wage oiders involved 52 separate minimum wage rates for industries in Puerto Rico and 10 separate rates for industries in the Virgin Islands. Appendix tables L and M show the new and former minimum wage rates for all industries in Puerto Rico and the Virgin Islands, for which wage orders were issued during the year.
Industry Committees Nos. 17-A through 17-E for Puerto Rico were convened in July and early August 1955, prior to the enactment of the 1955 amendments. These committees were reconvened during August and September, to give additional consideration to their tentative recommendations in the light of the 1955 amendments.
Industry Committees Nos. 18-A through 18-D for Puerto Rico convened in November and December 1955, Committees Nos. 19-A through 19-D convened in January 1956, and Committees Nos. 20-A, 20-B and 20-C convened in February and March 1956. The findings of fact and recommendations of each of these committees were received and wage orders were issued shortly thereafter, putting the recommended rates into effect.
During the latter part of June 1956, Industry Committee No. 21 for Puerto Rico convened to review minimum wages for the sugar industry. The committee recommendation of 90 cents an hour was made in July 1956 and that rate will become effective early in fiscal 1957.
Industry Committee No. 3 for the Virgin Islands convened in March and April 1956 to consider minimum wages for all the Islands’ industries. The committee recommendations were received and a single wage order was issued giving effect to all the recommended wage rates.
For a list of all minimum wage rates in effect in Puerto Rico at the end of fiscal 1956 and for a list of the industries in Puerto Rico and the Virgin Islands considered by industry committees during the year, see appendix tables N and O.
In December 1955, the regulations applicable to the employment of homeworkers in the needle trades in Puerto Rico were revised not only to incorporate changes in existing piece rates but also to add rates for new operations which had become important, to change the reporting procedures so as to clarify the responsibility of contractors and subcontractors, and to aid efficient enforcement. In November 1955 a piece-rate revision became
215
effective under the regulations governing the employment of homeworkers in Puerto Rico in industries other than needlework.
A comprehensive revision was made in the regulations governing the wage order procedure for Puerto Rico and the Virgin Islands, not only to accord with the changes required by the 1955 amendments but also to simplify and expedite the committees' hearings.
In June 1956 the Commonwealth of Puerto Rico enacted the Minimum Wage Act of Puerto Rico, which provides, in some instances, for the establishment of minimum wages equal to or above the existing rates for industries in Puerto Rico subject to the Fair Labor Standards Act, as well as increased rates for some industries engaged in local commerce. This act also provides that minimum wage rates for all industries shall be reviewed at least once every two years by tripartite minimum wage committees. There will be a need to evaluate the effect of the Commonwealth act on the administration of the Federal wage order program.
WALSH-HEALEY PUBLIC CONTRACTS ACT
More than 30,000 contracts were reported to the Divisions in fiscal 1956 by the various contracting agencies of the Government as being subject to the Public Contracts Act. The aggregate value of these contracts was in excess of $6 billion (see appendix tables P and Q). These figures do not include contracts which are confidential or secret. The substantial Government purchases subject to the act emphasize the importance of the law and indicate that many of the Nation’s production workers benefit from its provisions.
Wage Determination Program
Section 1 (b) of the Public Contracts Act authorizes the Secretary of Labor to determine prevailing minimum wages to be paid on contracts subject to the statute. The Secretary has made such determinations for 46 industries. (See appendix table R.) Unclassified contracts for products of these industries during the year exceeded $3 billion, or slightly more than half of all unclassified awards.
During the course of the 1956 fiscal year, the Secretary of Labor issued 5 final determinations. Two determinations, for office machines and for bituminous coal, were the first ever made for these industries. The Secretary found a prevailing minimum wage of $1.10 for office machines, with the determination becoming effective on June 18, 1956. For bituminous coal, the determination, effective November 25, 1955, recognized 22 coal districts and made separate findings on prevailing minimum wages for each district, the highest rate found being $2,346. Approximately four-fifths of the coal produced for the Government comes from districts for which the Secretary determined the prevailing minimum hourly wage to be $2,245.
Rates for three industries were revised upward. The new determination for the paper and pulp industry, which became effective on December 5,
216
1955, found a minimum of 99 cents an hour for the paper bag branch and $1,115 an hour for other products. The revised determination for the envelope industry, also effective on December 5, required a minimum hourly wage of $1.08. Effective May 7, 1956, the amended determination for the photographic and blueprinting equipment and supplies industry established a minimum wage of $1.18 an hour.
In addition, the Secretary proposed an industrywide prevailing minimum wage of $1.26 an hour for the electric lamp industry, with learners permitted for 3 months at not less than $1.20.5
Under section 10 of the act, determinations of prevailing minimum wages are made “on the record after opportunity for a hearing.” A hearing for the battery industry was held October 18 and 19.6 A hearing for the scientific, industrial and laboratory instruments industry convened on April 16 and continued through April 19, at which time the hearing was recessed until May 24, with the concluding session on May 28. Another hearing covered 36 industries or portions of industries which had some rates in the determinations below the $1 minimum effective under the Fair Labor Standards Act on March 1, 1956; this hearing was held on February 29.7
Typically, the first step in a wage determination proceeding is the convening of labor-management panel conferences, to explore the problems in the industry and to work out plans for obtaining the necessary wage data for wage determination purposes. Such panel conferences were held in five industries: Flour milling, drugs and medicines, industrial chemicals, paints and varnishes, and soap.
At the beginning of the year, two determinations of the Secretary—one for the textile industry, the other for the woolen and worsted industry— were under temporary injunction. In addition, a temporary injunction was issued by the Federal District Court for the District of Columbia on November 22,1955, against the Secretary’s determination for the bituminous coal industry. Each of these injunctions applied only to those companies which filed bonds for the contracts on which they were engaged.
On December 1, 1955, the United States Court of Appeals for the District of Columbia Circuit handed down its decision, reversing an earlier decision by the District Court, and sustaining the Secretary’s determination of prevailing minimum wages for the cotton, silk, and synthetic textile branch of the textile industry (Covington M.ills, et al. n. MitchelC). Subsequently, on February 7, Judge Youngdahl of the Federal District Court for the District of Columbia upheld the Secretary’s determination of $1.20 for the broad-woven goods, yarn and thread branch of the woolen and worsted industry and for pressed felt (Allendale Co., et al. v. MitchelC). The com-
5 The final decision, issued in July, became effective on August 20.
6 The Secretary’s proposed determination for the battery industry was issued on August 16, 1956; the proposal would establish minimum hourly rates of $1.08 for dry batteries, $1.35 for lead-acid storage batteries, and $1.34 for other batteries.
7 The Secretary’s final determination of $1 an hour for these 36 industries or portions thereof was issued on September 7, 1956.
217
parties concerned petitioned the United States Supreme Court for writs of certiorari in connection with both the Circuit Court decision in the Covington case and the District Court decision in the Allendale case. The Supreme Court denied the petition in the Covington case in March and refused to reconsider its action in May 1956. The Supreme Court denied the petition in the Allendale case in April. On May 23, 1956, Judge Letts of the District Court for the District of Columbia upheld the Secretary’s determination for the bituminous coal industry and dissolved the temporary injunction (Central Pennsylvania O'pen Pit Mining Assn. v. Mitchell).
In connection with these court actions, members of the staff of the Divisions assisted the Office of the Solicitor in the analysis and preparation of economic materials.
Administrative Activities
Two partial exceptions from the requirements of the Public Contracts Act were issued by the Secretary of Labor. One of these concerns air carriers on contracts under the Civil Air Fleet Program. This exception was published in the Federal Register on September 21, 1955. The action permitted air carriers subject to title II of the Railway Labor Act to enter into contracts subject to the Public Contracts Act and in furtherance of the Civil Reserve Fleet Program, even though they are not manufacturers or regular dealers. This exception also exempted airline employees from the minimum wage and overtime pay requirements of the Public Contracts Act. The Secretary’s decision emphasized that the exemption did not affect liabilities of suppliers of the airlines on such contracts and required the airlines to notify their suppliers accordingly.
The second exception permitted certain types of coal sellers to bid on Government contracts although they did not qualify as regular dealers or manufacturers. It became effective on April 19, 1956. The exception permitted companies to bid and receive Government contracts subject to the act if: (a) They regularly buy and sell coal on their own account in lots of not less than a cargo or railroad carload; or (Jo) they are authorized by one or more persons engaged in mining coal to negotiate and conclude contracts for the furnishing of coal in cargo or railroad carload lots. The exception attached a number of conditions: The seller should notify the mines that the Public Contracts Act is applicable; apart from the liability of the mines the seller is liable for observance in the mines of all labor standards provided by the act; and the seller should notify the contracting agency that he accepts the contract upon the terms and conditions included in the exception.
In making the exception, the Secretary noted that unless special provision were made, “the effect * * * would be the practical exclusion of the small mine operator from a share in the business of supplying the Government needs.’’
A new interpretation of the term “day” under the act was announced during the year. This new definition provides that the first day of the
218
workweek begins at the same hour as the workweek itself, and successive workdays during the workweek begin at the same time each calendar day. Under the earlier interpretation, the workday started at the beginning of the shift or when the employee began to work or reported for work.
The continued high level of Government purchases subject to the act resulted in many inquiries concerning its provisions. Contracting agencies and individual companies continued to direct to the Divisions numerous requests for rulings on such matters as whether certain firms were qualified “manufacturers” or “regular dealers” as required by section 1 (a) of the act, and as defined in the regulations issued under the law.
The Divisions also replied to many inquiries concerning the applicability of the act to certain types of secondary contractors and their employees. Where the prime contractor uses another firm to perform work which is customarily done in the industry, such a secondary contractor is subject to the act.
Other activities included the answering of inquiries as to which prevailing minimum wage determination, if any, is applicable to a particular contract. Such inquiries were received from bidders, contractors, contracting agencies, and employees.
VI. Economic Effects of the Minimum Wage
A comprehensive program for determining the economic effects of the $1 minimum wage was initiated, in compliance with the 1955 amendments’ requirement that the minimum wage be evaluated annually. The previous attempt to obtain a substantial body of empirical data on the effects of minimum wages (after the 75-cent rate was put into effect in January 1950) had yielded some information on the immediate impact but little on the longer-range effects. This was because the outbreak of war in Korea and the subsequent rise in economic activity obscured the effects of the minimum wage.
The planned program comprises a study of economic indicators, industry surveys, locality surveys, a wage distribution study, case studies of heavily affected plants, and followups of complaints of adverse effects. While the Divisions have overall responsibility for the study of minimum wage effects, various phases of the program represent a joint venture of the Divisions and the Bureau of Labor Statistics.
The Bureau of Labor Statistics is conducting three types of wage studies to measure impact—industry studies, a wage distribution study, and locality studies. The first phase of the industry and locality studies covers pay periods shortly before and after March 1, 1956, while data for a year later will be collected in the second phase of the study. Much of the field collection work for the first phase of these studies was completed at the end of the fiscal year, but the data had not been tabulated or analyzed.
219
The 12 industries selected for the program of studies are confined to geographical areas where the minimum wage is expected to have a substantial impact. These industries—canning, cigars, dress shirts, fertilizer, footwear, processed waste, raw sugar, sawmills, seamless hosiery, tobacco stemming, wooden containers, and work shirts—are for the most part limited to the South. The general plan is to collect data which will show wage distributions, selected wage practices, and general wage changes in a sample of plants for each of the industries.
The ten locality surveys are designed to appraise both the short and long-run effects of the minimum wage on the community wage structure, including direct effects on wages of covered workers previously earning less than $1 an hour, indirect effects on wages of covered workers earning $1 or more, and effects on wages of noncovered workers. Ten relatively small communities are the subjects of the studies. In the Northeast, Burlington, Vt., Millville, N. J., and the Sunbury-Shamokin-Mount Carmel area of Pennsylvania have been selected. The seven other localities are in the South—Athens and Dalton, Ga.; Dothan, Ala.; Fort Smith, Ark.; Hickory, N. C.; Meridian, Miss.; and Spartanburg, S. C.
Planning for the wage distribution study—a mail questionnaire survey had been completed at the end of the year, but data collection had not been started. This study will show the distributions of production workers by straight-time hourly earnings as of April 1956. The manufacturing groups being studied are food, textiles, apparel, furniture, and leather and leather products.
The study of economic indicators designed to measure the overall effects on the economy of the $1 minimum had just been started at the end of the fiscal year. Secondary data on trends in employment, wages, hours, prices, labor turnover, and other pertinent factors were being analyzed with a view to determine whether the effect of the minimum wage was sufficiently marked to be reflected in the overall economic indicators. Preliminary data for March and April failed to show any unusual change in trend which could be attributed to the new minimum wage.
The followups of complaints of adverse effects were well under way at the close of the fiscal year. Approximately 400 allegations of layoffs attributed to the higher minimum wage were being followed up by the field staff. These followup visits were in the nature of case studies in which the Wage-Hour interviewers attempted to ascertain the facts, such as whether or not there actually were layoffs, and the actions which the employer may have undertaken to offset the impact of the minimum wage.
The other major study in the program, case studies of approximately 300 plants heavily affected by the $1 minimum wage, is planned for the 1958 fiscal year. Detailed information will be obtained on the methods of adjustment adopted by these plants, such as new machinery, price changes or changes in product, and any change in practices in hiring, training, and retention of personnel.
220
Appendix table A.—Distribution of minors found employed in nonagricultural establishments in violation of the child labor provisions of the Fair Labor Standards Act, by industry and age, fiscal year 1956
Total number of minors	Age of minors							
	16-17	14-15	13	12	11	10	9	Under 9
4,831 3,062	2,644 1,750	1,824 1,107	173 91	82 48	45 30	28 14	12 8	23 14
500	249	227	15	7	1	1		
								
94 56 94 26 65 22 90 13 38 2	64 30 12 17 36 9 53 10 17 1	28 26 74 9 22 12 34 3 18 1	2					
								
			4	4				
								
			5 1 2	1		1		
								
				1				
								
			1	1	1			
								
								
521	301	176	7	8	9	8	3	9
51 37 79 180 25 8 42 63 36	32 31 49 96 10 5 14 46 18	14 5 28 80 11 3 18 8 9		1		1	2	1
			1 1					
				1 2				
					2 3			
			1					
								
				1	2 1 1	3 2 2		4 3 1
			3 1					
				3			1	
734	522	168	19	15	4	3	2	1
146 397 49 72 70	87 291 31 59 54	46 81 14 11 16	6 9 2 2	4 11	1 1 2	1 2		1
							2	
								
								
								
								
537	271	227	20	10	7		1	1
								
1 69 169 209 89	1 48 66 105 51							
		10 97 83 37	4 3 12 1	1 2 7	5 1 1			1
								
							1	
								
								
67	31	33	3					
								
5 7 6 7 35 2 5	2 5 2 5 15 2	3 1 2 2 20						
			1 2					
								
								
								
								
		5						
								
61	40	21						
								
15 22 24 432	4 17 19 236	11 5 5 172						
								
								
			12	5	4	2	1	—
								
14 172 175 45 5 21	6 107 88 25 2 8	6 56 78 20 2 10	2 3 4					
				3	2 1	1 1	1	
								
								
			1 2					
					1			
				—				
Industry group
Total, all industries______________
Manufacturing industries___________
Food and tobacco products----------------
Meat products________________________
Dairy products_______________________
Canning and preserving_______________
Grain-mill products__________________
Bakery products______________________
Confectionery and related products___
Bottled soft drinks__________________
Manufactured ice_____________________
Miscellaneous food products__________
Tobacco manufactures-----------------
Textile, apparel, and leather products___
Textile mills (except knitting mills)___
Knitting mills__________________________
Men’s and boys’ clothing________________
Women’s and children’s clothing_________
Miscellaneous apparel and accessories... Trimmings and embroideries--------------
Miscellaneous fabricated textileproducts. Footwear (except rubber)________________
Leather and leather products, n. e. c.1—.
Lumber, furniture, and wood products________
Logging camps and logging contractors.. Sawmills, planing, and plywood mills... Wooden containers-----------------------
Fixtures and miscellaneous wood products________________________________
Furniture_______________________________
Paper* printing, publishing, etc_________
Pulp, paper, and paperboard mills____
Converted paper products_____________
Newspapers___________________________
Commercial printing__________________
Periodicals, books, and miscellaneous trades_______________________________
Chemicals, rubber, and related products__
Drugs and medicines__________________
Paints, varnishes, and colors________
Fertilizers__________________________
Vegetable and animal oils and fats___
Chemicals and allied products, n. e. c.1.. Products of petroleum, and coal______
Rubber products______________________
Stone, clay, and glass products__________
Clay products and pottery____________
Cement, concrete, and plaster products.. Glass, stone, and nonmetallic mineral products_____________________________
Metal and related products_______________
Primary metal industries_____________
Fabricated metal products____________
Machinery____________________________
Transportation equipment_____________
Ordnance and accessories_____________
Instruments, photographic, optical, and jewelry------------------------------
See footnote at end of table.
407351—57----15
221
Appendix table A.—Distribution of minors found employed in nonagricultural establishments in violation of the child labor provisions of the Fair Labor Standards Act, by industry and age, fiscal year 1956—-Continued
Industry group	Total number of minors	Age of minors							
		16-17	14-15	13	12	11	10	9	Under 9
Miscellaneous manufacturing industries	 Toys sporting, and athletic goods	210	100	83	15	3	5		1	3
									
	65 63 82	34 18 48	18 33 32	8 5 2	3	2 3			
Costume jewelry and novelties										1	3
Miscellaneous manufacturing Indus-tries, n. e. c.1			- - 										
Nonmanufacturing industries											
	1,769	894	717	82	34	15	14	4	9
Mining									
	202	158	43	1					
Metal mining											
	11 28 145 18	9 23 111 15	2 5 33 3						
Coal mining									
Crude petroleum and natural gas				1					
Nonmetallic mining and quarrying									
Construction									
	135	80	52	1		1	1		
Trade: Food and farm products									
	306	105	149	28	17	2	1		4
Consumers’ goods- _ _	.	.										
	129 52 85 40	42 13 49 1	68 26 34 21	12 8 2 6	1 4	2	1		3 1
Raw materials									
Groceries, food, and tobacco products... Fish and sea foods									
					12				
Trade (except food and farm products)	 Motor vehicles and equipment									
	589	332	216	19	3	5	5	4	5
	78 44 38 4 10 140 48 59 168	52 25 12 1 7 82 31 39 83	24 15 25 3 1 51 15 15 67	1 3 1			1		
Drugs, chemicals, and allied products, __ Dry goods and apparel					1				
									
Petroleum and its products									
Beer, wines, and liquors				2 6 1 3 2					
Hardware, machinery, electrical goods, etc _						1 1 1 2			
Lumber and construction materials									
Waste materials								1 3	
Trade, n. e. c.1... 	 - -						2		4		5
Finance, insurance, and real estate									
	25	5	17	1	2				
Banking									
	18 4 1 2	4	11 4	1	2				
Insurance									
Real estate			1							
Finance, n. e. c.1			2						
Transportation, communication, and utilities _	_ ..									
	183	97	71	5	3	3	4		
Railroads									
	1 117 26 30 9		1 34 14 19 3						
Highway transportation and warehousing		80 6 5 6					3 1		
Transportation and transportation services, n. e. c.1				2 3	1 2	2 1			
Communication									
Heat, light, power, and water									
Miscellaneous industries, n. e. c.1									
	322	113	167	26	9	4	3		
Agricultural and related services									
	98 146 9 3 32 3 11 20	52 32 3 2 16 3 2 3	38 86 5 0 16	1 20 1 1	3 6	2 1	2 1		
Business services _											
									
Laundries, cleaning, and related services Automobile repair services, and garages.. Miscellaneous repair services, n. e. c.1... Motion pictures									
									
									
									
Professional and related services			9 13						
Nonmanufacturing industries, n. e. c.1.. Agriculture, forestry, and fisheries				3		1			
									
	7	4	2	1					
Agriculture									
									
Forestry	5 2	4	0 1 2	1					
Fisheries										
							i			
1 Not elsewhere classified.
222
Appendix table B.—Results of investigations under the Fair Labor Standards Act in agricultural establishments, primary investigations and reinvestigations, fiscal year 1956
Region and State	All investigations		Primary investigations		Reinvestigations	
	Establishments investigated	Establishments in violation	Establishments investigated	Establishments in violation	Establishments investigated	Establishments in violation
United States		3,210	1,910	2,695	1,762	515	148
I. Boston		45	29	40	24	5	5
Maine			43	27	39	23	4	4
Massachusetts		1	1			1	1
Vermont		1	1	1	1		
						
II. New York City				142	39	115	30	27	9
New Jersey		75	38	54	29	21	9
New York		67	1	61	1	6	0
III. Philadelphia		95	33	75	24	20	9
Delaware 			17	8	13	6	4	2
Maryland - 		36	9	25	5	11	4
Pennsylvania		42	16	37	13	5	3
IV. Birmingham				671	527	603	516	68	11
Alabama		-	363	301	322	297	41	4
Florida 				14	13	13	12	1	1
Georgia		138	133	132	132	6	1
Mississippi 	 		.	108	35	91	33	17	2
South Carolina		...	48	45	45	42	3	3
V. Cleveland		110	43	67	33	43	10
Michigan					15	10	5	5	10	5
Ohio-?-		95	33	62	28	33	5
VI. Chicago			369	77	253	62	116	15
Illinois			121	31	88	25	33	6
Indiana 	 -				128	17	88	13	40	4
Minnesota			69	20	40	16	29	4
Wisconsin		51	9	37	8	14	1
VII. Kansas City					128	55	86	40	42	15
Colorado				42	24	30	19	12	5
Iowa—		2	0	2	0		
Missouri		1	1	1	1		
Nebraska		70	23	44	15	26	8
North Dakota		13	7	9	5	4	2
VIII. Dallas						709	679	652	646	57	33
Arkansas 		72	70	68	68	4	2
Louisiana		44	39	38	38	6	1
New Mexico		19	19	18	18	1	1
Oklahoma		52	48	46	46	6	2
Texas						522	503	482	476	40	27
223
Appendix table B.—Results of investigations under the Fair Labor Standards Act in agricultural establishments, primary investigations and reinvestigations, fiscal year 1956—Continued
Region and State	All investigations		Primary investigations		Reinvestigations	
	Establishments investigated	Establishments in violation	Establishments investigated	Establishments in violation	Establishments investigated	Establishments in violation
IX. San Francisco		492	213	428	195	64	18
Arizona __ 			16	2	12	1	4	1
California			269	124	228	110	41	14
Tdaho	8	8	8	8		
Montana _ 		10	1	7	1	3	0
Nevada 			13	6	9	6	4	0
Oregon	_ 	 ________	57	16	45	13	12	3
Utah	- 		25	17	25	17		
Washington	94	39	94	39		
						
X. Nashville	...			264	140	224	125	40	15
Kentucky 		75	6	56	5	19	1
Tennessee. 		62	26	54	24	8	2
Virginia			127	108	114	96	13	12
West Virginia						
						
San Tuan T* Tt	28	1	28	1		
Other Offices: Hawaii __ 		14	0	13	0	1	0
Raleigh: North Carolina		143	74	111	66	32	8
224
Appendix table C.—Farms visited and summary of findings of special child labor investigations in agriculture, by region and state, fiscal year 1956
Region and State	Farms visited, no violations found i	Farms in violation of child labor provisions	Minors under 16 employed in violation			
			Local labor		Nonlocal labor	
			Under 14	14-15	Under 14	14-15
United States		 		1,459	1,910	1,648	916	1,230	491
I. Boston	 .						
	16	29	10	5	40	17
Connecticut								
						
Maine					27 1	10	4	38 2	17
Massachusetts		 ..						
New Hampshire	 _ 							
Rhode Island	 ..						
Vermont			1		1		
II. New York City	 New Jersey							
	103	39	2	3	55	17
		38 1	1 1	3	55	16 1
New York	 _						
III. Philadelphia							
	109	33	21	25	18	3
Delaware							
		8 9 16	7 3 11	6 8 11	2 10 6	
Maryland							2 1
Pennsylvania							
IV. Birmingham		... 	 _						
	144	527	719	217	7	1
Alabama							
		301 13 133 35 45	275 32 231 67 114	96 11 75 18 17		
Florida						2 3 2	
Georgia							
Mississippi							1
South Carolina								
V. Cleveland	 							
	67	43 10 	33 77		2	55 19 36 94	38 5 33 76
Michigan			 									
Ohio. 					2 16		
VI. Chicago		292		10			
Illinois	 							
		31 17 20 9	3	3 1 3 9	31 32 18 13	31 11 24 10
Indiana—. 								
Minnesota	 				2 5			
Wisconsin								
VII. Kansas City	 _						
	140	55	10	21	31	38
Colorado							
		24	6	10	13	16
Iowa. 							
Kansas							
Missouri			1 23 7		1 9 1		
Nebraska.. 				4		8 10	14 8
North Dakota							
South Dakota							
Wyoming							
VIII. Dallas							
	61	679	418	409	404	134
Arkansas							
		70 39 19 48 503 213	140 43 6 9 220 55	54 16 12 5 322 84	10	9
Louisiana							
New Mexico						5 77 312 471	4 21 100 144
Oklahoma								
Texas							
IX. San Francisco	 .	279					
Arizona							
		2 124 8 1 6 16 17 39		1 28 1	5 403 7 7 7 13 21 8	1 107 6 3 1 11 10 5
California				43			
Idaho 	 .						
Montana							
Nevada				2 2 6 2	2 5 2 45		
Oregon 	 . .						
Utah							
Washington							
						
See footnote at end of table.
225
Appendix table C.—Farms visited and summary of findings of special child labor investigations in agriculture, by region and state, fiscal year 1956—Continued
Region and State	Farms visited, no violations found 1	Farms in violation of child labor provisions	Minors under 16 employed in violation			
			Local labor		Nonlocal labor	
			Under 14	14-15	Under 14	14-15
X. Nashville 		124	140	202	82	52	23
Kentucky						
		6 26 108	9 52 141	5 21 56		
Tennessee 						8 44	2 21
Virginia 							
West Virginia						
San .Tnan						
	27	1	1	1		
Puerto Rico						
		1	1	1		
Virgin Islands						
Other Offices						
	28	0	0	0		
Alaska						
						
District of Columbia						
Hawaii _ _									
Raleigh: North Carolina						
	69	74	200	51	3	
						
1 Includes 159 child labor visits on farms which did not have any hired labor or covered employees;]dis-tribution by State not available)
226
Appendix table D.—Monetary violations disclosed and back wages agreed to as a result of investigations in nonagricultural establishments under the Fair Labor Standards Act, during the period October 1938 through June 30, 1956, and under the Public Contracts Act during
the period October 19^.2 through June 30, 1956, by fiscal year
Back wages agreed to	Average amount per establishment	CO o										
	Amount	$162, 458,262										
	Employees	3, 766,146										
	Number of establishments	263,083										
In violation of the minimum wage and overtime provisions	Back wages owed											
	Employees underpaid	£	sssesssfsi'ifsliSS's									
	Number of establishments	338,077										
Number of establishments investigated		685,884										
	Fiscal year	All years, total				i!	0	d'	si	!§	!g	ii	!
i Not a'
227
Appendix table E.—Summary of findings in nonagricultural establishments investigated under the Fair Labor Standards and Public Contracts Acts, by region and state, fiscal year 1956
Back wages agreed to	Employ-ees	74,762					Sg	8		2	wcfoT	3		!-	2§
	Amount	$6,051,909	320,459			606,361	3§	563,186		639,154		403,756	§§	515,716	2§
	Establishments	!-				।		g		§			Ss	2	
Back wages owed	Overtime	$9,473,050	543,367	883832		997,297		80S‘988		911,825	§8g®g	622,044	S3	658,946	38
	Minimum wage	$1,612,902	51,455	^38«S		HS‘68	22	114,420		279,319		41,819	ts 255	54,054	82'
	73 o	$11,085,952	594,822			1,086,811		g i	?gi	3 §	Ss'tfSs	663, 863	If	i	gg g£
Employees underpaid	Overtime	g £	g			8 3	°g  a § a £53 o-s	112,710	J	-l-Tcf		13,022	w-i		793 |	32 55 178 372 44 20 s 30	361	64 213 17 31 36
	Total	18, 461 9,216	CO	259 122 213 114 156 (	67 148 1	45	I	164 24	2,226 |	211 155 374 (	944 95 |	72 ,1	148 113 114	os T—<	197 755 f	78 211 I	253
Establishments investigated	Percent of estimated covered establishments		CO	9 5 14 5 । 6 7		r—(	7 12 13 । 10 13 6	CO	11 4 | 7
	Number	33,148 17,376	2,176	376 229 372 194 229 (	115 226 1	67	I	310 58	4, 449	410 380 731 (	1,812 240 1	171 I	289 197 219	2, 374	244 1,178 f	124 391 I	437
Estimated number of covered establishments		762, 586 255, 742	34,082	4,105 4,558 2,673 3, 576 5,458 |	12,869	CO 00	45,948	5,968 3, 269 5,549 J 25,910 1, 467 3,785	00	2,177 26, 247 |	13,324
Industry group		II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	1	1	1	1	1	1	1	1	I	1 II	1	1	1	1	1	1	1	1	1	1	1 II	1	11111*1111 II	1	1	1	1	1	1	1	1	1	1 II	I	I	I	i	I	I cS	1	1	*	* Il	I	111112	11*1 Il	l	i	i	I	i	I t-3	I	l	।	। li	l	I	I	1	1	i rd	*	*	*	* 1	■	I	1	l	l	l	I 0	l	*	1	* :.a	:	: : ; : ixs	! !« ; । *-<	*	* * * • * o	1 !_d ! i*3	*	*	*	bn	•	1 -S	•	1	d ■ 5	12	;	i	g	;	; a	;	;	o » 8-g	g > >	! £ -3 XJ	1 ‘  bis 1 ft > . •« 2”	; a g : i.g® 1,2 i fl §	:§ : ■S M : :|g iB i«r gg	: o	d	1	*	os * x	1 tri	£	u >	।	• f_(	.d	।	। o	w	*o	n,	bn t>4	1	2	! ft	1	t 3	w	d4-<	1	d	1 ।	ri d»—<'d 4-^ 4-2 d	o	Sr d	i	R	i is	M i5®®-ga^ft	te	jg fl > _S	> fl	S I K.O S' l-sg-a	03	S-§.9fl	: a	>2-3	®~	2	ftAafl	1 -r	-S-fl’flgflgS'O	3	a’S.c'2	i £	=2 S-ft 03 §03 ST'S	5	g -§ a 8 a Ahnfly1fltofl!3 02 a a JH o a a S a Q Z Q a is o 02 a o £ M Q <1 ra ci H a ■< a	Back wages agreed to 1	Employees			74, 762	37,633	6,355	1,179 566 2,104 443 549 367 336 236 430 145	10, 089	728 844 2,198 3,745 625 176 631 718 424	5, 705	357 3,293 277
		Amount			$6,051, 909	2,574,996	479, 787	106,851 73, 504 59, 440 48,842 53,826 20, 771 40, 608 35,682 34,434 5,829	451,224	59,630 38,404 86,915 152,831 15, 324 8, 963 32,402 32, 946 23,809	433,606	27, 312 258, 579 19,189
		Number of establishments			13, 596	6,632	Ci	180 84 144 i 84 (83 53 110 32 125 19	g r—1	162 124 300 780 73 54 114 84 78	964	61 515 52
	Employees underpaid	Overtime			97,082	45, 598	9,337	1,428 838 3,676 500 927 365 495 358 560 190	8,416	891 501 1,162 3,378 336 184 499 1,009 456	8,269	1,086 4,653 479
		•a s a •5 3 ™			27,617	17,111	3,456	619 283 1,397 136 230 181 276 196 98 40	s	201 639 1,869 3, 031 596 57 328 735 116	2,461	554 1,548 90
		Total			112,710	56,079	11,370	1, 861 1,014 4, 793 549 994 393 568 399 598 201	s	983 1, 008 2, 763 5,697 870 234 764 1, 252 550	8,961	1,217 5,042 505
	Back wages owed	Amount	Overtime		$9, 473, 050	3, 992, 550 1	937,896	163, 567 103, 515 290,171 60,001 123,900 20, 869 66,152 56,398 45,195 8,128	569,793	93,106 50, 522 80,845 195, 204 14, 019 13,860 42,074 48,175 31, 988	750,320	144,517 386, 083 40,613
			Minimum wage		$1,612, 902	765,885 I	00 00 00	28,988 27,194 35, 733 14, 217 10,222 4,349 34, 650 25, 211 4,284 970	215,763	5,944 8, 684 41,023 76, 751 9,287 2, 559 28,429 35, 460 7,626	144,248	29,885 95, 563 2,191
			Total		$11,085,952	4, 758,435 |	1,123,714 |	192, 555 130, 709 325, 904 74,218 134,122 25,218 100,802 81,609 49, 479 9,098	785,556	99,050 59, 206 121, 868 271, 955 23,306 16,419 70, 503 83,635 39, 614	894,568	174,402 481, 646 42,804
		Establishments in violation minimum wage and overtime			16, 777	8,101	1,200	239 111 182 104 141 63 140 44 152 24	2, 071	189 143 342 905 86 66 136 99 105	1,238	128 642 67
	Covered employees in investigated establishments		Percent of covered em-	ployees		00	00	1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1 1	1	1	1	1	1	1	1	1	1	3	1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III	ci	1	1	1 1	1	1 1	1	1
			Number		1,581,641	1,206,233 I	123,987	15,935 6,427 46, 092 8, 612 11,706 7,902 2,475 1,461 14, 844 8, 533	382,509	46, 579 41, 414 111,635 107,130 18, 020 5,152 11,320 30,441 10,818	87, 949	4, 595 40, 514 4,693
	Estimated number of covered employees				23,976,000	15,448,000	1,530,000		2, 654,000	1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III 1	1	1	1	1	1	III	987,000	1	1	1 1	1	1 1	1	1
	Industry group				Total, all industries			 Manufacturing industries	 Food and tobacco products	 Meat products	 Dairy products	 Canning and preserving	 Grain-mill products	 Bakery products	 Confectionery and related products... Bottled soft drinks	 Manufactured ice	 Miscellaneous food products	 Tobacco manufacturers					Textile, apparel, and leather products	 Textile mills (except knitting mills).. Knitting mills	 Men’s and boys’ clothing	 Women’s and children’s clothing	 Misc. apparel and accessories	 Trimmings and embroideries	 Miscellaneous fabricated textile products	 Footwear (except rubber)	 Leather and leather products, n. e. c.1— Lumber, furniture, and wood products—			Logging camps and logging contractors— Sawmills, planing, and plywood mills. Wooden containers	
234
623 1,155	1,782	20 419 243 803 297		1,321	45 78 130 159 397 356 156	1,340	439 502 399	8, 515	551 2,985 3,127 1,240 43 569	2, 526	653 695 1,178	37,129
49,187 79,339	192,695	3,497	37,419 37,298 83, 767 30,714	120,519	2,719 8,487 11, 710 22,535 25,856 36, 047 13,165	117,388	33,240 53, 762 30, 386	632,150	30,381 236,050 210, 044 110,109 1,146 44,420	147,627	31,943 46,744 68,940	$3,476,913
153 183	505	00	131 48 215 103	266	20 26 22 22 96 44 36	207	53 92 62	1,534	92 591 555 170 15 111	473	87 136 250	6,964
777 1,274	2,120	32	444 442 880 322	1,649	50 72 204 212 463 384 264	1,762	505 717 540	1 11,598	743 4, 494 3,827 1,773 45 716	2,447	475 660 1,312	| 51,484
92 177			177 102 222 65	363	19 19 63 11 162 24 65	|	301	118 72 111	1,000	87 486 238 80 2 115	QO 00 co	414 438 536	10,506
813 1,384	2,465	34 597 469 1,012 353		1,852	56 90 219 216 571 388 312	1,828	533 745 550	12,104	800 4,718 3,941 1, 798 46 801	3,378	870 1,033 1,475	56,631
80,647 98,460	237,582	4,620 40, 986 68,426 89, 585 33,965		160,541	2,572 9,407 15,467 29,800 35,169 42,753 25,373	181,415	36,848 83, 940 60, 627	983, 532	42,438 410,854 288, 569 170,069 2,134 69, 468	171,471	34, 056 51,871 85, 544	$5,480, 500
5,334 11, 275	45,704	1,040 10, 537 11,253 19,737 3,137		26, 066	263 1,508 5,314 3,157 11, 557 1,698 2, 569	699 ‘tZ	8,097 6, 571 10, 001	59,831	3,079 23, 561 21, 576 6,544 62 5,007	63, 786	17, 347 28,367 18,072	$847,017
85,981 109, 735	283,286	5, 660 51, 523 79,679 109,322 37,102		186,607	2,835 10, 915 20, 781 32,957 46, 726 44,451 27,942	206, 084	44, 945 90, 511 70,628	1 1, 043,363	45, 517 434.415 310,145 176, 613 2,196 74,477	235,257	51, 403 80,238 103,616	$6,327, 517
183 218	909	12 155 74 248 117		335	21 32 27 32 125 51 47	255	60 116 79	o 00	108 713 646 204 16 139	570	109 178 283	8,676
						I o				13		
10,474 27, 673	84,667	13, 532 29,866 4,661 14, 564 22, 044		56,354	5,803 2,151 1,357 1,143 26, 691 7,064 12,145	30,042	10,741 6,477 12,824	385,964	40,248 111,495 167, 939 34,621 8, 616 23, 045	54,761	12,734 16,170 25,857	375,408
1 1 1 1 1 1	1,170, 000		III	1 III	1 III	1 III	1 III	1 III	1 III	1 III	1	rH		489,000	1	1	1 1	1	1 1	1	1 1	1	1 1	1	1 1	1	1	7,075,000	1	1	1	1	1	1 1	1	1	1	1	1 1	1	1	1	1	1	415,000	1	1	1 1	1	1 1	1	1 1	1	1 1	1	1	8,514,000 I
Fixtures and miscellaneous wood products, n. e. c.1	 Furniture		..	Paper, printing, publishing, etc	 Pulp, paper, and paperboard mills	 Converted paper products	 Newspapers	 Commercial printing	 Periodicals, books, and miscellaneous trades	 Chemicals, rubber, and related products..				Drugs and medicines	 Paints, varnishes, and colors	 Fertilizers	 Vegetable and animal oils and fats	 Chemicals and allied products, n. e. c.1. Products of petroleum and coal	 Rubber products	 Stone, clay, and glass products			Stone products and pottery	 Cement, concrete, and plaster products	 Glass, stone, and nonmetallic mineral products	 Metal and related products	 Primary metal industries	 Fabricated metal products	 Machinery	 Transportation equipment	 Ordnance and accessories	 Instruments, photographic, optica], and jewelry	 Miscellaneous manufacturing industries. _				Toys, sporting, and athletic goods.... Costume jewelry and novelties	 Miscellaneous manufacturing industries, n. e. c.1			 Nonmanufacturing industries		
See footnote at end of table.
235
PART 2. BACK WAGES OWED AND EMPLOYEES UNPAID—Continued
Back wages agreed to	Employees		4,392	478 1,375 1,829 710	8, 580	3,929	1,796 888 1,229 16	7,778	795 309 272 374 164 2,447 919 839 1,659	3 of	1,432 499 185 485
	Amount		$464,237	28,232 111,046 230,719 94,240	617,877	405,277	187, 748 63, 969 152, 781 779	945,854	132, 545 39,133 24,397 62, 545 15,823 276,029 129,142 97,685 168,555	‘0 OO	88,146 41,862 18, 052 36,985
	8 o3 ® <5 $		03 CO	43 187 296 113	03 05	1 co 1 ***	292 156 361 4	2,126	229 83 85 129 71 729 188 212 400	s	385 123 51 98
Employees underpaid	Overtime		7,457	682 2,466 3,104 1,205	12,048	4,843	2, 224 1,041 1,550 28	10,742	1,024 368 392 458 181 3,425 1,208 1,209 2,477	03 CO	1,674 557 265 623
	Minimum wage		1,066	23 424 512 107	03 OO	04	793 276 448 4	2,283	214 136 132 85 42 356 169 377 772	s	346 130 90 69
	Total		7,753	685 2,660 3,168 1,240	12,378	5,726	2, 723 1,177 1,797 29	11,809	1,088 433 474 506 205 3,553 1,340 1,360 2,850	CM 03 CO co	1,837 614 304 637
Back wages owed	Amount	Overtime	$869,191	50, 946 233,556 411,080 173, 609	996,626 |	587,827	255,093 72,725 257,396 2, 613	1,361,582	170,616 46, 523 47.470 109, 768 21,418 424,636 161, 088 138,871 241,192	03 03 co 1O CM	91, 630 48,287 25,425 50,057
		Minimum wage	$98, 292	1,976 33,420 45, 561 17,335	56,675 1	106,955 I	60,136 14,435 32,345 39	199,430	18,788 11, 393 9,310 14, 230 2, 480 29, 565 9,340 59,643 44, 681	s	18, 555 15, 580 5, 613 5, 852
		Total	$967,483	52, 922 266, 976 456,641 190,944	1.053,301 I	694,782	315,229 87,160 289,741 2,652	1,561,012	189,404 57,916 56, 780 123, 998 23,898 454,201 170, 428 198,514 285, 873	03 03 s CM	110,185 63,867 31, 038 55, 909
	Establish-	ments in violation minimum wageand overtime	00	61 271 388 151	cc !	1,009 1	372 173 456 8	2,593	287 104 106 149 82 883 223 287 472	CO	412 146 64 124
Covered employees in investigated establishments		Percent of covered employees	CO	Illi Illi Illi	04 (	CM	! i : d		1	1	1	1	1	Illi 1	1	1	1	1	Illi 1	1	1	1	1	Illi 1	1	1	1	1	Illi 1	1	1	t	1	Illi 1	1	1	1	1	Illi 1	1	1	1	1	Illi 1	1	1	1	1	Illi	XT	H : :
		Number	44. 561	3,037 20,865 13,679 6, 980	70,974 I	30,597	9,779 6,095 14,641 82	82,020	6,134 3,838 3, 396 7,194 1,964 21,453 6,712 7,369 23,960	OO	18, 970 18, 574 1,883 4, 417
Estimated number of covered employees			747,000		000'119	1,923,000			1 1 1 1 1 till 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi 1 1 1 1 1 Illi	f	H i ; I
Industry group			Mining	 Metal mining	 Coal mining	 Crude petroleum and natural gas	 Nonmetallic mining and quarrying...		construction	 Trade, food and farm products	 Consumers’ goods	 Raw materials	 Groceries, food and tobacco products.. Fish and sea foods	 Trade, except food and farm products	 Motor vehicles and equipment	 Drugs, chemicals, and allied products. Dry goods and apparel	 Petroleum and its products	 Beer, wines, and liquors	 Hardware, machinery, electrical goods, etc	 Lumber and construction materials... Waste materials	 Trade, n. e. c.1	 Finance, insurance and real estate	 Banking	 Insurance	 Real estate	 Finance, n. e. c.1							
236
£
8
■s
s

%
407351-57-
16
237
Appendix table G.—Violations disclosed by investigation in nonagricultural establishments under the Fair Labor Standards and Public Contracts Acts by age of establishment and employee size, fiscal year 1956
Age of establishment and employee size	Number of establishments in violation				
	Number of establishments investigated	Basic provisions 1	Minimum wage provisions	Overtime provisions	Child labor provisions
All establishments		33,148	18,461	4,468	15,484	2,974
1- 3 employees 		2,613	1,455	515	1,113	240
4—7 employees 		5,706	3,031	875	2,523	474
8 19 employees		9,700	5, 291	1,329	4, 536	848
20 49 employees 	 -	7,595	4, 283	918	3,664	699
50 -199 employees 		5,753	3,360	660	2,832	543
200 or more employees		1,781	1,041	171	816	170
New establishments2		5,084	3,277	899	2,761	537
1 3 employees 		674	432	144	317	75
4 7 employees 		1,168	731	223	617	129
8-19 employees 		1,563	1,011	258	872	162
20—49 employees 		1,008	675	158	581	109
50-199 employees 		'570	373	107	317	57
200 or more employees		101	64	9	57	5
Old establishments		28,064	15,184	3,469	12,723	2,437
1-3 employees		1,939	1,032	371	796	165
4-7 employees 		4,538	2,300	652	1,906	345
8-19 employees				8,137	4, 280	1,071	3,664	686
90-49 employees 		6,587	3,608	760	3,083	590
50-199 employees 		5,183	2,987	553	2,515	486
200 or more employees		1,680	977	162	759	165
i Violations of the basic provisions include minimum wage, overtime, and child labor violations of either or both acts and violations of the safety and health provisions of the Public Contracts Act.
2 An establishment is considered to be new if it has not previously been investigated and it commenced operations or had a change in ownership within 3 years of the date of investigation.
238
Appendix table H.—Investigation cases closed in nonagricultural establishments under the Fair Labor Standards and Public Contracts Acts, by basis for investigation and violations disclosed, fiscal year 1956
Basis for making investigation and violations disclosed
All investigations:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Complaint priority:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Public Contracts priority:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Other priority:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Special child labor:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Selected:
Establishments investigated________________________________________________________
Establishments in violation of basic provisions 1__________________________________
Establishments in violation of minimum wage provisions_____________________________
Establishments in violation of overtime provisions_________________________________
Establishments in violation of child labor provisions______________________________
Number
33,148 18,461
4,468
15,484 2,974
6,829 5,516 2,042
4, 758
794
1,866 1,052
82 709 109
4,362 2,553
676
1,983 591
62 38
2 6
35
20,029 9,302 1,666 8,028
1,445
1 Violations of basic provisions include minimum wage, overtime, and child labor violations of either or both acts, and violations of the safety and health provisions of the Public Contracts Act.
Appendix table I.—Reasons for denial of requests for learners certificate, fiscal year 1956 1
	All industries		Industries covered by special industry learner regulations		Industries not covered by special industry learner regulations	
	Number	Percent	Number	Percent	Number	Percent
Total number of denials		464	100	197	100	267	100
Experienced workers available		85	18	70	36	15	6
Industrywide denial		119	25	17	9	102	39
High wage structures		60	13	8	4	52	19
Serious violation of previous learner certificate	.			7	2	6	3	1	(s)
Unskilled occupation or learning period too short... 				72	16	4	2	68	26
Apprenticeable occupation		1	(1 2)	0	0	1	(*)
Skill acquired prior to employment		9	2	0	0	9	3
Other reasons		111	24	92	46	19	7
1 Does not include 166 applications that were withdrawn or 22 certificates that were canceled.
2 Less than 0.5 percent.
239
Appendix table J.—Action taken on applications for learner certificates, by industry, fiscal year 1956
			Action taken on applications				
Industry	Pending July 1, 1955 2	Received during period 2	Applica-	Certificates granted 1			Applications pending
			tions denied or withdrawn	Total	Normal labor turnover	Expansion	as of June 30, 1956 2
Total f all industries		59	3,985 3,169	652	3,582 3,051	3,067 2,650	515	142
Industries covered by special industry learner regulations, total		58		358			401	99
Apparel industry, total.. 		47	2,121	233	2,058	1,789	269	66
							
Single pants, shirts, and allied gar-ments	_________			76	948	804	144	
Women’s apparel __					129	989	880	109	
Sportswear and other odd outer- wear _ 				21	94	81	13	
Rainwear	_	_ 				4	9	9	0	
Robes	. _ 				1	15	13	2	
Leather and sheep-lined clothing				2	3	2	1	
							
Hosiery		4	273	25	273	228	45	11
							
Full-fashioned				11	84	77	7	
Seamless	_						14	189	151	38	
							
Knitted wear .. . 		6	288	24	302	251	51	9
							
Gloves and mittens			135	18	117	105	12	4
							
Leather . 				2	13	11	2	
Knit fabric				3	12	12	0	
Knitted. . 				2	10	10	0	
Work gloves ___________________			11	82	72	10	
							
Independent telephone		0	66	6	58	58	0	2
Cigar		-- 		1	38	4	40	33	7	2
Shoe manufacturing		0	248	48	203	186	17	5
							
Industries not covered by special industry learner regulations, total		1	712	283	410	381	29	42
Food and kindred products _.			28	40	40	0	
Textile mill products (except hosiery and knitwear)-.			73	60	53	7	
Miscellaneous apparel -			23	156	151	5	
Leather products __			13	39	36	3	
Electrical machinery, equipment, and supplies			26	18	12	6	
Miscellaneous manufacturing sup-plies	_	________			41	39	37	2	
Other industries, total				79	58	52	6	
Offices Outside Continental United States and total . 		0	104	11	121	36	85	1
							
Puerto Rico			91	10	108	29	79	1
Virgin Islands _	_ 			4	0	5	0	5	
Hawaii		9	1	8	7	1	
							
1 The number of certificates issued may exceed the number of applications received since more than 1 certificate may be issued on the basis of 1 application.
2 Detailed industry breakdown not available.
240
Appendix table K.—Learner certificates in effect on June 30, 1956, by industry
Industry	Number of plants holding certificates	Number of certificates in effect	Maximum number of learners authorized at any one time		
			Total	Normal labor turnover	Expansion
Total, all industries		3,089	3,342	57,788	45,482	12,306
Industries covered by special Industry learner regulations, total		2,650	2,884	49,922	40,460	9,462
Apparel industry, total		1,792	1,942	34,432	28,032	6,400
Single pants, shirts, and allied garments		812	886	19,845	15,950	3,895
AVomen’s apparel		875	939	12,924	10,884	2,040
Sportswear and other odd outerwear		84	92	1,376	981	395
Rainwear...		. . 		8	8	68	68	0
Robes.. . _ 	 		10	13	193	138	55
Leather and sheep-lined clothing		3	4	26	11	15
Hosiery				238	267	3,858	2,772	1,086
Full-fashioned	 		81	87	1,078	943	135
Seamless		157	189	2, 780	1,829	951
Knitted wear		235	274	3,418	2,508	910
Gloves and mittens		1G6	113	1,332	1,156	176
Leather .. 		12	14	108	87	21
Knit fabric		 - 	 —	11	12	175	175	0
Knitted		 - 		9	10	112	112	0
Work gloves		74	77	937	782	155
Independent telephone		58	58	120	120	0
Cigar		.. 	 		32	33	1,197	1,182	15
Shoe manufacturing		189	197	5,565	4,690	875
Industries not covered by special industry				4, 743	1,583
learner regulations, total		374	393	6,326		
Food and kindred products		39	39	317	317	0
Textile mill products (except hosiery and knitwear)..	56	59	520	343	177
Miscellaneous apparel		142	150	2,692	2,392	210
Leather products... 		35	36	376	336	40
Electrical machinery, equipment and supplies		12	17	1,634	609	1,025
Miscellaneous manufacturing industries.. 		36	36	347	310	37
Other Industries, total		54	56	530	436	94
Offices outside continental United States, total.	65	65	1,540	279	1,261
Puerto Rico		 . 		55	55	1,448	250	1,198
Virgin Islands		3	3	55	0	55
Hawaii		7	7	37	29	8
241
Appendix table L.—Changes in minimum wage rates in Puerto Rico during fiscal year 1956
Industry and division or classification	Rate (cents per hour)		Effective date of increase
	July 1,1955	June 30,1956	
Alcoholic beverage and industrial alcohol: Malt beverage division		53	75	Oct. 6,1955
General division				 		60	75	Do.
Artificial flower		43	50	Apr. 16,1956
Clay and clay products: Handmade art pottery classification		40	30	Dec. 31,1955
Vitreous and semivitreous china food utensils classification	 __ 	 _ 		40	46	Do.
Structural clay and miscellaneous clay products classification				40	75	Do.
Communications, utilities, and miscellaneous transportation Industries: Gas utility division		65	75	Oct. 20,1955
Radio broadcasting division		55	65	Do.
Telephone division		70	75	Do.
Television broadcasting division		75	75	Do.
Corsets, brassieres, and allied garments		55	70	Mar. 5,1956
Electrical, instrument, and related manufacturing industries: Lens and thermometer division		45	60	Sept. 12,1955
Resistance-type household appliance division		45	65	Do.
General division		30,45, 58	70	Do.
Food and related products: Citron brining division		35	40	Oct. 20,1955
General division		30, 35,42><5	45	Do.
Hooked rug: Hand-hooked rug classification		33	43	Jan. 20,1956
Single-needle machine-hooked rug classification		40	48	Do.
Multiple-needle machine classification		40	65	Do.
Hosiery: Women’s full-fashioned hosiery classification		50	62J<	Apr 19,1956
Women’s seamless hosiery classification		50	57^	Do.
Men’s and children’s hosiery and women’s anklets classification. . 		50	55	Do.
Men’s and boys’ clothing and related products: Hat and cap classification		55	60	Apr. 30,1956
Necktie classification		55	60	Do.
Suits, coats, and jackets classification		55	60	Do.
General classification		47^	55	Do.
Metal hair accessories. _ 						75	53	Mar. 5,1956
Needlework and fabricated textile products: Corde and bonnaz embroidery and corde handbag division.	36	51	July 25,1955
Silk, rayon, and nylon underwear division: Hand-sewing operations		21	26	Oct. 6,1955
Other operations		34	48	Do.
Suits, coats, skirts, fur garments, and related products division.. .. 	 	 		21,30,45	55	Do.
Miscellaneous apparel products division		21,30	47^	Do.
General division: Hand-embroidery operations		21	35	Do.
Other operations		30	45	Do.
Plastic products: Sprayer and vaporizer division		45	75	July 25,19
Wall tile, dinnerware, and phonograph records division...	45	60	Do.
General division		30-45	53	Do.
Shoe manufacturing and related products		40	46	Mar. £5,1956
Stone, glass, and related products: Concrete block and tile classification. 		50	75	Jan. 20,1956
Concrete pipe classification		60	1.00	Mar. 1,1956 Do.
Glass and glass products classification		60	1.00	
Hot asphaltic plant mix classification		75	1.00	Do.
Mica classification. _	_ 	 -	42	50	Jan. 1,1956
Ready-mixed concrete classification		50	85	Mar. 1,1956 Jan. 20,1956
General classification		42,50	60	
Textile and textile products: Mattress and pillow classification		75	90	Mar. 5,1956
General classification		37^, 40,42J^	50	Do.
Tobacco: Puerto Rican cigar filler tobacco				31,36	35	Nov. 28,1955
Processing division		31	50	Oct. 20,1955
Wholesaling, warehousing, and other distribution: Agent, broker, sales branch, mail order, and petroleum bulk station classification		65	1.00	Mar. 1,1956
Drugs and chemicals, electrical goods, and machinery and equipment classification		65	90	Do.
Warehousing and grocery wholesaling classification		65	75	Jan. 20,1956
General classification					65	80	Mar. 1,1956
242
Appendix table M.— Changes in minimum wage rates in the Virgin Islands from Nov. 26, 1951, to June 4, 1956
Industry and branch	Rate (cents per hour)	
	Nov. 26, 1951 i	June 4, 1956 1
Alcoholic beverages and industrial alcohol industry		40,45	50
Banking, real estate, accounting and insurance, wholesale distribution, trucking, construction and communications industry	 _ 		40,45, 50	65
Bay rum and other toilet preparations industry		40	60
Button and buckle industry	 		40,45	55
Fruit and vegetable packing and farm product assembling and meat packing industry... 	 ... ...			 ...	30,37 20	40
Handmade art linen and straw goods industry: Hand-sewing operations on art linen			20
Hand-sewing and hand-weaving operations on straw goods		15	15
Other operations ___	... ...		 	 ...	35	40
Shipping, transportation, ship and boat building industry		35,45, 50	80
Miscellaneous industries		40,45, 50	50
		
1 This is the effective date of wage order for all rates listed in this column.
Appendix table N.—Minimum wage rates in Puerto Rico under the Fair Labor Standards Act
	Cents	Effective
Industry and division or classification	per hour	date of wage order
Alcoholic beverage and industrial alcohol:
Malt beverage division_____________________________________________________
General division___________________________________________________________
Artificial flower______________________________________________________________
Banking, insurance, and finance________________________________________________
Button, buckle, and jewelry:
Button and buckle (other than pearl, leather, or fabric) and bead division_
Costume jewelry general division___________________________________________
Costume jewelry hair ornament division_____________________________________
Leather and fabric button and buckle division______________________________
Metal expansion watch band division________________________________________
Pearl button and buckle division___________________________________________
Precious jewelry division__________________________________________________
Rosary and native jewelry division_________________________________________
Cement_________________________________________________________________________
Chemical, petroleum, and related products industries:
Fertilizer division________________________________________________________
Hormones, antibiotics, and related products division_______________________
General division___________________________________________________________
Clay and clay products:
Handmade art pottery classification________________________________________
Vitreous and semivitreous china food utensils classification_______________
Structural clay and miscellaneous clay products classification_____________
Communications, utilities, and miscellaneous transportation industries:
Airline division___________________________________________________________
Cable and radiotelephone division__________________________________________
Gas utility division_______________________________________________________
Radio broadcasting division________________________________________________
Telephone division_________________________________________________________
Television broadcasting division___________________________________________
Tourist bureau and ticket agency division__________________________________
Miscellaneous division_____________________________________________________
Construction, business service, motion picture, and miscellaneous industries:
Business service and miscellaneous industries division_____________________
Construction division______________________________________________________
Motion-pictures division___________________________________________________
Corsets, brassieres, and allied garments_______________________________________
Decorations and party favors___________________________________________________
Electrical, instrument, and related manufacturing industries:
Lens and thermometer division______________________________________________
Resistance-type household appliance division_______________________________
General division___________________________________________________________
Food and related products:
Citron brining division____________________________________________________
General division___________________________________________________________
Handicraft products____________________________________________________________
Hooked rug:
Hand-hooked rug classification_____________________________________________
Single-needle machine-hooked rug classification____________________________
Multiple-needle machine classification_____________________________________
75	Oct. 6,1955
75	Do.
50	Apr. 16,1956
75	July 13,1953
48	June 8,1953
36	Jan. 4,1954
50	Do.
53	Dec. 6,1954
60	June 8,1953
54	Sept. 14,1953
55	June 8,1953
33	Do.
75	July 13,1953
75	July 14,1952
75	Do.
51	Do.
30	Dec. 31,1955
46	Do.
75	Do.
75
75
75
65
75
75
75
75
65
50
55
70
30
60
65
70
40
45
26
43
48
65
May 5,1952 Do.
Oct. 20,1955 Do.
Do.
Do.
May 5,1952 Do.
Aug. 11,1952 Do.
Do.
Mar. 5,1956
Aug. 13,1951
Sept. 12,1955 Do.
Do.
Oct. 20,1955 Do.
Apr. 16,1951
Jan. 20,1956
Do.
Do.
243
Appendix table N.—Minimum wage rates in Puerto Rico under the Fair Labor Standards Act—Continued
Industry and division or classification
Cents per hour
Effective date of wage order
Hosiery:
Women’s full-fashioned hosiery classification____________________________
Women’s seamless hosiery classification----------------------------------
Men’s and children’s hosiery and women’s anklets classification----------
Jewel cutting and polishing:
Gem stone division______________________________________________________
Industrial jewel division________________________________________________
Leather, leather goods, and related products:
Hide curing division_____________________________________________________
Leather tanning and processing division__________________________________
Small leather goods, baseball, and softball division--------------------
General division________________________________________________________
Lumber and wood products:
Furniture, woodenware, and miscellaneous wood products division---------
Lumber and millwork division____________________________________________
Men’s and boys’ clothing and related products:
Hat and cap classification_______________________________________________
Necktie classification___________________________________________________
Suits, coats, and jackets classification________________________________
General classification__________________________________________________
Metal hair accessories_______________________________________________________
Metal, machinery, transportation equipment, and allied industries:
Dry dock division________________________________________________________
Fabricated wire products, steel spring, and slide fastener division-----
General division________________________________________________________
Needlework and fabricated textile products:
Art linen and needlepoint division_______________________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Blouse, dress, and neckwear division____________________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Children’s and dolls’ wear division_____________________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Corde and bonnaz embroidery and corde handbag division------------------
Cotton underwear and infants’ underwear division------------------------
Hand-sewing operations_______________________________________________
Other operations_____________________________________________
Crochet beading, bullion embroidery, machine embroidered lace, insignia, and chevron division____________________________________________________
Crocheted hats and infants’ bootee division_____________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Crocheted slipper division______________________________________________
Dungarees, slacks, and related products division------------------------
Fabric glove division___________________________________________________
Hand-sewing operations___________________________________________—
Machine operations and any operations known to the industry as cutting, laying off, sizing, banding, and boxing-----------------------------
Other operations____________________________________________________
Handkerchief and square scarf division___________________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Hat body division________________________________________________________
Infants’ wear division___________________________________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Knit glove division_____________________________________________________
Leather glove division__________________________________________________
Hand-sewing operations__________________________________________-—
Machine operations and any operations known to the industry as cutting, laying off, sizing, banding, and boxing-----------------------------
Other operations____________________________________________________
Silk, rayon, and nylon underwear division_______________________________
Hand-sewing operations_______________________________________________
Other operations____________________________________________________
Suits, coats, skirts, fur garments, and related products division-------
Sweater and bathing suit division---------------------------------------
Miscellaneous apparel products division---------------------------------
General division________________________________________________________
Hand-embroidery operations-------------------------------------------
Other operations-------------------------------;--------------------
Paper, paper products, printing, publishing, and related industries:
Daily newspaper division________________________________________________
Paper bag division______________________________________________________
Paperboard division_____________________________________________________
Paper box division------------------------------------------------------
General division________________________________________________________
62J^ 57^ 55
50
42
65
40
32
40
38
42
60
60
60
55
53
75
65
75
22 40
’35”
45
35" 40
51
22ji 40
4714
35” 45 45 47H
22^
57^ 40
’22^
40 57^
25”
40 40
’30”
57^ 40
'26”
48 55
50 47^
’35”
45
60 45
40 55
40
Apr. 19,1956 Do.
Do.
Nov. 19,1951
Jan. 28,1952
Sept. 14,1953
Do.
Do.
Do.
Aug. 11, 1952 Do.
Apr. 30,1956 Do.
Do.
Do.
Mar. 5,1956
Nov. 30,1953
June 27,1955 Do.
June 6,1955
Do.
Do.
July 25,1955
June 6,1955
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Oct. 6,1955
Do.
June 6,1955
Oct. 6,1955
Do.
Dec. 10,1951
Do.
Do.
Do.
Do.
244
Appendix table N.—Minimum wage rates in Puerto Pico under the Fair Labor Standards Act—Continued
Industry and division or classification
Cents per hour
Effective date of v. age order
Plastic products:
Sprayer and vaporizer division________________________________________________
Wall tile, dinnerware, and phonograph records division________________________
General division______________________________________________________________
Railroad, railway express, and property motor transport:
Railroad division_____________________________________________________________
Railway express and property motor transport division_________________________
Rubber, straw, hair, and related products:
Rubber products division______________________________________________________
Straw, hair, and related products division______________________________________
Shipping__________________________________________________________________________
Shoe manufacturing and related products___________________________________________
Stone, glass, and related products:
Concrete block and tile classification________________________________________
Concrete pipe classification__________________________________________________
Glass and glass products classification_______________________________________
Hot asphaltic plant mix classification________________________________________
Mica classification___________________________________________________________
Ready-mixed concrete classification___________________________________________
General classification________________________________________________________
Sugar manufacturing_______________________________________________________________
Textile and textile products:
Mattress and pillow classification____________________________________________
General classification________________________________________________________
Tobacco:
Puerto Rican cigar filler tobacco processing division_________________________
General division______________________________________________________________
Wholesaling, warehousing, and other distribution:
Agent, broker, sales branch, mail order, and petroleum bulk station classifi- | cation________________________________________________________________________
Drugs and chemicals, electrical goods, and machinery and equipment classification________________________________________________________________________
Warehousing and grocery wholesaling classification____________________________
General classification________________________________________________________
75 60 53	July 25,1955 Do. Do.
33	May 4,1953
60	Do.
60	Oct. 13,1952
37	July 20,1953
75	July 24,1950
46	Mar. 5,1956
75	Jan. 20,1956
1.00	Mar. 1,1956
1.00	Do.
1.00	Do.
50	Jan. 20,1956
85	Mar. 1,1956
60	Jan. 20,1956
75	Mar. 2,1953
90	Mar. 5,1956
50	Do.
35	Nov. 28,1955
50	Oct. 20,1955
1.00	Mar. 1,1956
90	Do.
75	Jan. 20,1956
80	Mar. 1,1956
Appendix table O.—Wage order program for Puerto Rico and the Virgin Islands completed in fiscal year 1956
Industry committee No.	Industry considered	Hearing date
Puerto Rico: 17-A... 		Needlework and fabricated textile products (silk, rayon, and nylon underwear and miscellaneous divisions). Alcoholic beverage and industrial alcohol ..			July 11,1955 July 18,1955 July 20,1955 July 26,1955 Aug. 3,1955 Aug. 29,1955 Sept. 1,1955 Sept. 14,1955 Sept. 6,1955 Sept. 10,1955 Nov. 21,1955 Nov. 26,1955 Dec. 6,1955 Dec. 8,1955 Jan. 9,1956 Jan. 17,1956 Jan. 23,1956 Jan. 30,1956 Feb. 20,1956 Mar. 1,1956 Mar. 6,1956 June 25,1956 Mar. 26.1956
17-B			
17-C		Food and related products. 			 .. 	 			
17-D		Tobacco. .	..	. .	
17-E	 . .	Communications, utilities, and miscellaneous transportation (telephone, gas utility, radio broadcasting and television broadcasting divisions). Needlework and fabricated textile products (silk, rayon, and nylon underwear and miscellaneous divisions). Alcoholic beverage and industrial alcohol ...	
17-A ■			
17-B 1			
17-C 1		Food and related products		 		 .. 		
17-D 1		Tobacco	. ..				 	 _ 		 .	
17-E i		Communications, utilities, and miscellaneous transportation (telephone, gas utility, radio broadcasting and television broadcasting divisions). Clay and clay products .. 				
18-A				
18-B		Stone, glass, and related products..	. .	.. _ 		
18-C		Wholesaling, warehousing, and other distribution			
18-D		Hooked rug		...	_ .				 . 	.	
19-A	Corsets, brassieres, and allied garments _ 		
19-B	Textile and textile products	.					
19-C			Shoe manufacturing and related products		
19-D		Metal hair accessories. .			
20-A _	-- . ...	Men’s and boys’ clothing and related products			
20-B		Hosiery		. _ . 		 	 		 		
20-C._ 		Artificial flower._	_ 	 		
211 2		Sugar manufacturing	 		 _.				
Virgin Islands: 3	_	All industries	 . 	 		
		
1 Rehearing.
2 In progress at end of fiscal year.
245
Appendix table P.—Number and value of unclassified contracts subject to the Walsh-Healey Public Contracts Act, by fiscal years 1937-56
Fiscal year	Number of contracts	Value (in thousands)	Fiscal year	Number of contracts	Value (in thousands)
	853,890	$181,083,953	1946		35,366 19,303 21,413 27,393 22,349 57,493 65,475 54,210 44, 081 33,270 30,916	$5, 224,234 1, 656, 595 2,360,105 3,606, 280 2,784,325 10,422, 848 10, 978,395 10,978,817 7,932,035 6,383,855 6, 051, 504
1937 (9 months)	 1938			1947			
	3,223 5,158 6,396 9,324 24,333 59,536 101,224 98,167 135, 260	177,789 294,953 528,393 799,733 5,085,694 15,867,769 30, 935,632 30,216,662 28, 798,335			
			1948			
			1949			
1939 _ 				1950			
1940 .			1951			
1941 .					1952			
1942			1953			
1943 				1954			
1944 _					1955			
1945			1956			
					
Appendix table Q.— Unclassified contracts awarded subject to the Walsh-Healey Public Contracts Act, classified by State of prime contractor, fiscal year 1956
Region and State	Number of	Amount2
	contracts 1	(add 000)
United States		30,916	$6,051,504
		
I. Boston		2,250	331,893
Connecticut		799	154,688
Maine		44	2,954
Massachusetts		1,234	159,548
New Hampshire		50	8,071
Rhode Island		95	5,767
Vermont		28	865
	■ - 				‘ —	
II. New York City		8,167	1,394,498
New Jersey		2,048	464,245
New York		6,119	935,253
III. Philadelphia		3,414	414,375
Delaware		148	13,008
Maryland		715	153,845
Pennsylvania		2,551	247,522
IV. Birmingham		791	173,856
Alabama		163	15,105
Florida		272	11,802
Georgia		252	136,174
Mississippi		45	2, 902
South Carolina		59	7,873
V. Cleveland		3,152	837,508
Michigan		1,101	519,574
Ohio		2,051	317,934
VI. Chicago		3,304	520,903
Illinois		1,991	218,594
Indiana		528	190,957
Minnesota		312	30,272
Wisconsin		473	81,080
		
Region and State	Number of contracts 1	Amount2 (add 000)
VII. Kansas City		1,241	$486, 610
Colorado		223	15,459
Iowa	 Kansas		148 239	42,702 310,118
Missouri		547	114,179
Nebraska		47	2, 694
North Dakota		6	214
South Dakota		9	395
Wyoming		22	849
				—.	
VIII. Dallas		915	178,991
Arkansas		43	2, 620
Louisiana		162	7,440
New Mexico		47	2,457
Oklahoma		121	54,561
Texas		542	111,913
IX. San Francisco		5,045	1,438,970
Arizona		46	7,514
California		3,921	1,000,284
Idaho		20	1,107
Montana		23	2,039
Nevada		2	27
Oregon		290	11,370
Utah		123	8,477
Washington		620	408,152
	■	-■	J	—	—;		—
X. Nashville		1,111	117,323
Kentucky		247	33,906
Tennessee		415	41,114
Virginia		373	33,542
West Virginia		76	8,761
									 				■	
San Juan		18	701
Puerto Rico		17	658
Virgin Islands		1	43
Other Offices		1,331	141,904
Alaska		28	6,946
District of Columbia	1,242	132,467
Hawaii		61	2,491
		
Raleigh, N. C		177	8,972
1 Includes contracts for which no value was reported on the notice of award; some of these contracts may not be covered by the act.
2 For statistical purposes, the amount included for indefinite-amount contracts 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.
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247
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See footnotes at end of table.

Appendix table R.—Summary of minimum wage determinations applicable under the Walsh-Healey Public Contracts Act—Continued
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WOMEN’S BUREAU
The Women’s Bureau was established in the Department o£ Labor by act of Congress in 1920 to promote the welfare of women workers, increase their efficiency, advance their opportunities for employment, and report on mat-*	ters relating to their welfare. Since then, the number of women workers
has nearly tripled (from 8 to 22 million) while the civilian labor force as a whole has increased by less than 80 percent. The contribution of women workers to the economy has also increased, as their numbers, their educational level, their skills, and their experience have advanced.
To meet this changing situation, the Women’s Bureau has continually developed new emphases and new forms of service in order to fulfill its basic responsibilities. The Women’s Affairs Program, instituted by Secretary of Labor James P. Mitchell in the fall of 1954, gave increased recognition to women workers by utilizing more fully for their benefit the services, not only of the Women’s Bureau, but of other bureaus in the Department. The Director of the Women’s Bureau was appointed Assistant to the Secretary of Labor for Women’s Affairs, with responsibility for helping to develop and coordinate departmental programs relating to women workers. The enlarged program is designed to treat women workers as an integral part of the labor force and to give them consideration in all planning which affects them either as workers or as citizens.
The implementation of the objectives of the Women’s Affairs Program and progress toward achieving them were discussed with the Secretary of Labor and top Department officials in April 1956. The program was explained to representatives of 27 national organizations of women at an allday meeting in Washington in May; and there was general discussion of ways in which the women’s organizations and the Women’s Bureau could i	cooperate to advance the status of women at national, regional, and local
levels. It was suggested that similar conferences be held in the future, regional as well as national.
Trends in Women’s Employment
The number of women in the labor force, estimated at 20.8 million in June 1955, had risen to 22.3 million by June 1956, topping all previous records. Close to one-third of all workers (32 percent) were women.
The proportion of women in the older age groups who remain in or reenter the labor force continues to increase. In 1940, only a fifth of the women 35 years of age and over were workers; now over a third of such
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women are in the labor force. And, the relative increase for women 45 to 54 years of age has been even greater.
On the other hand, the proportion of younger women (18 to 34 years) who are working has declined from 40.3 to 38.6 percent between 1940 and 1956,
Age	1956	1955	1950	1945	1940
Women workers, 35 years and over		 		35.3	33.7	30.4	31.5	21.9
					
35 to 44 years		 		42.5	41.2	38.2	40.7	29.4
45 to 54 years 		 			44.6	42.9	37.1	36.9	24.5
55 to 64 years.. 	 - 		36.6	32.5	27.6	27.5	18.0
65 years and over		11.1	11.2	9.7	9.6	6.9
Women workers, 18 to 34 years		38.6	38.2	38.1	47.9	40.3
					
Source: U. S. Department of Commerce, Bureau of the Census.
Nearly 37 percent of all women 14 years of age and over were in the labor force in June 1956. Participation was highest at ages 18 to 24 years and again at ages 35 to 54 years; it was lower for the age group 25 to 34 years (when women are most likely to have young children needing constant care). The average (median) age of women workers continued its upward trend; by April 1956 it was 39.5 years, an increase of 5.2 years in a decade.
Clerical occupations continued to lead all others as a field for employment of women. By major occupation group, the number of employed women in April 1956 was as follows:
Occupation	Number	Percent distribution
Total			 	 		20,272,000	100
Clerical workers 		- - - - 	 		6,104,000	30
O peratives	_		 	 		- - -		- -	- 	 -	3,548,000	18
Service workers (except household) 	~_ 	 	 --	2,597,000	13
professional workers			 		 		2,125,000	10
Private household workers 	 			 --	2, 111, 000	10
Sales workers			 _ 		 _ 		 -	1,480,000	7
Farmers, farm laborers		 -		 - 		 - - — -	1,031,000	5
Managers officials, proprietors	__ 	 _ 	 __	__ __ _ —	932,000	5
Crafts women		 	 -- — - -	253,000	1
Laborers (except- farm)		 _______ 			93,000	
		
Source: U. S. Department of Commerce, Bureau of Census, Current Population Reports, May 1956, P-57, No. 166.
Salient facts as to occupations, industry groups, age, and marital status of women workers and their earnings, income, education, and vocational training are given in the 1956 Handbook on Women Workers. Revised biennially, this handbook also includes information on standards for the employment of women, and up-to-date summaries of State laws affecting both women’s employment and their civil and political status.
Activities at the Community Level
In line with the intent of the Women’s Affairs Program, Bureau activities were increasingly geared to community needs.
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Jobs for Mature Women
As a feature of the Department’s Older Worker Program, pilot Earning Opportunities Forums were held with the cooperation of the Bureau of Employment Security in Baltimore, Md., and Boston, Mass. Sponsored and organized locally by State labor departments and a wide variety of local organizations, these 1-day forums were attended by employers, placement workers, and mature women interested in employment. Materials distributed at the forums included two leaflets issued by the Bureau during the year: What a Community Can Do To Train Mature Women for Jobs; and Memo on Job Finding for the Mature Woman.
To enable other communities to utilize this experience, a leaflet was prepared on How To Conduct an Earning Opportunities Forum in Your Community.
The need for training programs for older women is shown by the response to a bulletin released in the summer of 1955, “Training Mature Women for Employment,” which tells the story of 23 local training programs. Some 10,OCX) copies were distributed.
Teacher Shortage Project
The effort to provide additional qualified teachers through accelerated training programs for mature college graduates, initiated by the Bureau in 1954 at a conference cosponsored by the Women’s Bureau and the United States Office of Education, was continued and expanded. Advisory assistance was given to women’s organizations interested in initiating local programs, and nearly 300 individual letters were written in response to inquiries about the project. More than 60,000 copies of the leaflet New Teachers for the Nation’s Children were distributed.
Further publicity was given to the idea through articles published in Changing Times, the Ladies’ Home Journal, Woman’s Day, the Saturday Evening Post, Better Schools, and Student Life. A number of college and university alumni magazines printed special articles prepared in the Bureau and many others reproduced a briefer article.
For Women’s Groups and Students
An important continuing service of the Bureau is assistance to women’s and civic groups, student associations, and other State and local organizations on programs for improvement of labor law standards and women’s civil and political status.
In response to a special request from officials of Girls’ State and Girls’ Nation, the Women’s Bureau prepared brief outlines of State labor laws affecting women and of State family and property laws in several States. These were used at Girls’ State conferences in Arizona, Massachusetts, Nebraska, and Oregon in the spring of 1956 with such effectiveness that the Bureau planned to prepare similar summaries for other States.
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Skills of Women Workers
With the employment of women at an all-time peak, Bureau studies were focused on occupations offering careers to women workers with special skills and training as a part of the Department’s program on the skills of the work force.
Accountants
A new bulletin, Employment Opportunities for Women in Professional Accounting, was released in the fall of 1955 and by the end of June nearly 12,500 copies had been distributed. An active demand for trained accountants and auditors, whether men or women, was reported in this bulletin.
Mathematicians and Statisticians
In view of the acute shortage of qualified mathematicians and statisticians and the greatly increased demand for programmers to work with electronic calculators, the Bureau made a study of opportunities for women in this rapidly developing field and of the need for increasing the potential supply of women with degrees in mathematics or statistics. This report, planned for publication late in 1956, supersedes an earlier report issued in 1948.
Beauty Operators
A bulletin on opportunities for women in beauty service occupations was prepared for release during the summer of 1956. It shows that beauty service offers employment opportunities in cities of all sizes for well-trained women, whatever their marital status, age, or race. Beauty service is a field where part-time employment can usually be arranged and where a woman with business experience can establish her own shop with a moderate amount of capital. The bulletin summarizes State requirements for the education, training, minimum age, and licensing of beauty operators.
Other Shortage Occupations
A survey of women engineers, made in cooperation with the Society of Women Engineers, was completed. A brief report was published in the Monthly Labor Review (May 1956). Preliminary plans were made for a broad survey of nurses’ wages, hours, and working conditions, to be carried out in cooperation with the Bureau of Labor Statistics.
Vocational Counseling Materials
In addition to its recent bulletins on engineering, accounting, and beauty service, the Bureau continued to distribute some 20 earlier bulletins describing employment opportunities for women in social work, home economics, and health service occupations. Especially in demand were the bulletins on physical therapists, professional nurses, practical nurses, medical technologists, and X-ray technicians, with distribution totaling over 17,000 copies during the year.
Nationwide publicity was given to a booklet, Careers for Women in the Armed Forces, prepared by the Women’s Bureau in cooperation with the
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Department of Defense, and released in October at a joint press conference by the Director of the Women’s Bureau and the Defense Advisory Committee on Women in the Services. This booklet, which contains information for students and counselors on opportunities for women in all four branches of the Armed Forces, provided material for a number of broadcasts and feature articles.
A representative sample of women college graduates of 1955 was surveyed to obtain information on how many were employed, how many studying, how many married, and on the relation of their occupations to their starting salaries and fields of study. The survey was planned and carried out by the Women’s Bureau and the Women’s Section of the National Vocational Guidance Association with the cooperation of 108 women’s and coeducational colleges and universities. The findings show that 80 percent of the women graduates of June 1955 were employed in early 1956; of the employed graduates, three-fifths were teaching.
Improvement of Standards Through Legislation
As one of its major continuing programs the Women’s Bureau advises on the improvement of standards for women through legislation, especially proposals relating to State laws on equal pay and minimum wages. Laws insuring equal rates to women for comparable work have obtained the broad support of women’s civic groups and unions, many of which requested basic materials and technical advisory services. The administration of State minimum wage laws through the periodic revision of industry wage orders has always been of major concern to the Bureau due to the employment of large numbers of women in trade and service occupations not covered by the Federal Fair Labor Standards Act.
Equal Pay
New stimulus was given to the equal-pay movement by President Eisenhower’s state of the Union message in January 1956, which called for enactment of Federal equal-pay legislation. The Department of Labor included Federal equal-pay legislation in its 1956 legislative program, and the Women’s Bureau participated with other bureaus of the Department in preparing 2-year budget estimates for enforcement of a Federal equal-pay program.
Extensive work was done in preparing technical and background materials relating to equal pay to be made available for the use of interested groups. In view of the adoption of equal-pay laws in three States (Arkansas, Colorado, and Oregon) during 1955, the Bureau also brought up to date and reissued its Equal-Pay Primer; a digest of State equal-pay laws; and a map showing the 16 States which, with Alaska, have enacted equal-pay laws.
Congress reached adjournment without taking action on equal pay. In June, however, increased union support came from the AFL-CIO, whose
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executive council, at a meeting held in Washington, D. C., endorsed Federal legislation to provide equal pay for comparable work for men and women.
Minimum Wage
The new pamphlet Minimum Wage and the Woman Worker summarizes briefly the State minimum wage situation as of July 1, 1955, and supplies background information for use in study groups and classroom discussions. With the inclusion of three new laws enacted in the spring of 1955 (in Idaho, New Mexico, and Wyoming) the minimum wage roster then stood at 29 States, the District of Columbia, Alaska, Hawaii, and Puerto Rico.
In 1956, few State legislatures were in session and no increase took place	*
in the number of minimum wage States. Puerto Rico reorganized its minimum wage system in a comprehensive act which repealed two previous laws, established statutory rates, and set up a wage board with prescribed powers. Amendments raising statutory rates were adopted in Massachusetts, New Hampshire, and Hawaii, and a statutory rate was adopted in Rhode Island for the first time. Wage orders providing for increased minimum wage rates in various industries became effective in the District of Columbia, Massachusetts, New Jersey, Oregon, Utah, and Puerto Rico.
A Bureau representative supplied technical aid to the Ohio Department of Industrial Relations in organizing the report of its retail trade survey, and to the New Jersey State Wage and Hour Bureau in analyzing and preparing the report of its minimum wage survey. At the request of the New Jersey State Department of Labor, the Consumers League, and other State organizations, the Bureau also assisted in the preparation of the technical briefs filed in court cases challenging the laundry and hospital wage orders. In both cases the decision was favorable to the State Department of Labor. Technical assistance was given on request in connection with proposed surveys, cost-of-living studies, wage orders, and legislative amendments in Colorado, Minnesota, Rhode Island, and the District of Columbia.
The Bureau’s State Minimum-Wage-Order Provisions Affecting Working Conditions was brought up to date (through June 1, 1955). In addition, a selective compilation was issued of State mercantile and retail trade orders and pertinent provisions in State minimum wage laws, as of December 1955.
Legal Status of Women
A new edition of the United States Summary of the Legal Status of Women (Bulletin 157) was completed and sent to the printer, superseding the 1951 edition. This report outlines the situation of women under State law with respect to property, family, and political relationships.
Various aspects of women’s status under State law were reviewed in an article prepared for publication in the 1956-57 edition of The Book of the States, published by the Council of State Governments, which also contained charts summarizing marriage and divorce laws for all States.
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International Cooperation
The Women’s Bureau participated in the Department’s program of International Labor Affairs and assisted a large number of women leaders visiting the United States under various sponsorships or on their own initiative, by helping to plan their programs and by providing information and materials.
Women Leaders From France and Italy
The programs of 67 French and Italian women brought to this country through a joint project of the Women’s Bureau and the Foreign Operations Administration (the predecessor of the International Cooperation Administration) were concluded during the summer of 1955.
In July, evaluation sessions were held. One session was attended by officials of the Department, the ICA, and cooperating women’s organizations, as well as members of the press.
The project then entered a new phase, carried on in Europe by the returning women leaders, and in this country through follow-up work by the Women’s Bureau and the women’s organizations. The Bureau suggested, in a memorandum to United States information officers in France and Italy, the program areas in which individual women were best equipped to speak and write, and also issued a detailed report on the project which was distributed in the United States to local sponsors, Government agencies, and cooperating groups. In 1956, the Bureau Director met with some of the women community leaders in Paris and found that they were discussing “Operation American Home” on radio and television, in newspaper and magazine articles, and in speeches before key women’s organizations and community forums.
International Educational Exchange Service
The Women’s Bureau participated in the International Educational Exchange Service of the Department of State by helping to plan itineraries and programs for 63 women exchangees from 20 countries and by securing local sponsors for them in various cities throughout the United States. Washington programs were arranged by the Bureau, and staff members gave them information on the economic and legal status of women in the United States and on the work of the Bureau.
Future exchange programs for women leaders, areas where there is gravest need for such programs, and methods of expanding the present exchange program to include more women were discussed by the Bureau Director with top officials of the State Department, United States delegates to international organizations, and representatives of leading national organizations of women.
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United Nations
In preparation for the tenth session of the Status of Women Commission held in Geneva, Switzerland, in March, Bureau officials prepared technical reports on women’s status in the United States for use by the United States delegate. They participated with Department of State officials in preparation of the United States position papers, draft resolutions, and supporting statements. A Bureau staff member attended the session as adviser to the United States delegate.
For publication in the United Nations Yearbook on Human Rights, extensive materials on State and Federal legislative action affecting women in the calendar years 1954 and 1955 were prepared and sent to the Department of State.
International Labor Organization
The Women’s Bureau Director attended the International Labor Conference in Geneva in June 1956 as an adviser to the United States Government delegates, and served on the committee considering the weekly day of rest.
At the request of the ILO, comprehensive reports were prepared on United States experience on equal pay pursuant to the adoption by the International Labor Conference in 1951 of the Convention and Recommendation on equal remuneration for work of equal value. Other materials prepared by the Bureau dealt with State provisions for weekly rest and plant facilities, and the draft United States position paper for use of the United States delegation at Geneva.
Recommendations were drafted for the agenda of the Committee of Experts on Women’s Employment, scheduled to meet in Geneva during November 1956, with the Assistant to the Secretary of Labor for Women’s Affairs representing the United States.
Relationships With the Public
The extent to which the Women’s Bureau is successful in promoting the welfare of women workers depends on public understanding of and interest in its objectives. A brochure, Programs and Services of the Women’s Bureau, issued in January 1956, describes the Bureau’s services available to employers, unions, and individuals; schools, colleges, and employment offices; State labor departments; and national and international organizations. Through the Women’s Affairs Program of the Department closer reciprocal relationships have been established both with other Government agencies whose programs affect women workers, such as the Bureau of Old-
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Age and Survivors Insurance, and with nongovernment agencies, such as the National Manpower Council at Columbia University and the Scientific Manpower Commission in Washington. In reaching the public, the Women’s Affairs Program utilized the various channels of building understanding, and good will established by the Women’s Bureau in the past, such as conferences, speeches, exhibits, field visits, press interviews, radio and television programs, publication of reports and popular leaflets, and the preparation of news releases and articles for newspapers and magazines.
For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. - Price 75 cents
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