UNIV SHELF .O V a, y,,,,. 5f T z.t UCLA~~~~~~ EMPLOYEE RELATIONS UPDATE, 1988 - 1989. INSTITUTE OF INDUSTRIAL RELATIONS "28th ANNUAL UCLA EMPLOYEE RELATIONS CONFERENCE March 13-14, 1989 Printed by Commerce Clearing House, - INS: TUTE Or- NDUJSTF:AL W-ELATION3 LIB?AnY juii 0u Jo89 UNIVERSI! I Vr GAL-&IKNiA UCLA EMPLOYEE RELATIONS UPDATE 1988 - 1989 lcAINSTlITUTE OF INDUSTRIAL RELATIONS 28th ANNUAL UCLA EMPLOYEE RELATIONS CONFERENCE March 13-14, 1989 PrintedbyCommereClai U"~Pine y omre lainQoa o 1989, Comma ClEARiNG HOUSE, INC. AU Rights Reserved PRIT IN THE UNITD STATEs OF AmECA FOREWORD UCLA Employee Relations Update 1988-89 was prepared by the UCLA Institute of Industrial Relations Center for Management Research and Education as part of its mission to bring the resources of the University to the community. This edition provides perspectives and statistics on emerging trends and issues in the workplace. It is intended to help employee relations decisionmakers formulate and evaluate existing and future policies. This text was prepared in conjunction with the 28th Annual UCLA Employee Relations Conference held on March 13-14, 1989. Our cosponsors for this event included Commerce Clearing House, the U.S. Department of Labor, the Federal Mediation and Conciliation Service, and the Southern California Industrial Relations Research Association. We wish to acknowledge the several contributors to this publication whose names appear at the start of each section. We thank Commerce Clearing House for publishing this update. Any comments or inquiries about this material are welcomed and may be addressed to our attention at 1001 Gayley, 2nd Floor, Los Angeles, CA 90024-1478. Rosalind M. Schwartz Assistant Director for Management Research and Education James H. Ballagh Coordinator, Center for Management Research and Education Jane F. Wildhorn Administrator, Publications Center Institute of Industrial Relations, University of California, Los Angeles i CONTENTS Foreword i Section A. The Economy A-I B. Wages and Prices B-1 C. Employment and Education C-1 D. Employee Benefits D-1 E. Legislation E-1 F. The Courts F-I G. Collective Bargaining G-1 H. A Selected Bibliography on Employee Relations H-1 A. THE ECONOMY Reduced Slack Risks Higher Inflation Risks of Recession Rising The success of the recent export boom in putting most idle people and machines to work has a dangrous side effect, namely, it becomes doubul that the bong pactmeeVpansionin US. history can cotinue for v more years. As shown in the chS below, the uelmt rate has dropped signifcant below 5.8 peroent, the level at which wage inflation accelerated under the Carter Ad- in rtio Dem raphicsre now more favorable forklowrfull emplemenratesofunemployment,but striinfor continuingreductionsas rapidthoseseen in the past few quarterswould risk a considerable ac- aiono fwagecompea ion demands. Similar- ly, the past few quarters has seen the capacity utilizationi manufacturng rise from below 80 per- cet to 84 percent. Anotheryear or so of such rapid inreases and many industries would encounter bot- denecs and shortages, which would lead to ac- eelergproducers prices. Infation Thretn to Exced Five Pernt Manymeasuresofidationhaveincreased atannual rates near or above 5 percent in the second and third quartersof 1988, including the onsumer price index, theconm tiondeftor, the GNP deflatorand the producers pice index (see Table 2, Part B, Projec- tion Tabls Appendix). Wage compensation in- creasedat the amualrate of4.2percent in the second quarrbut acrad to a rate of 5.6 percent in the thirdquarter. Weak productivity performance made unit labor cost increases 6.8 and 4.1 percent in these two quarters. Contngency Planning for A Recession The impication of acceleratng inflation is certain- ly on the minds of members of the Federal Open MarketCommitee,whichsea monetarypolicy. We tink that the ris of a recesson are high enough to make p aingfrone worth serious study, even ifyou do not make it your base case. It is impossible to predictvery preciselythetiming ofarecession,sothe dates used m the Base Foreca shouldbe used flexb- ly The Base Forecast calls for real GNP to drop by 140,03 and 03 percent in three quters be_ing in the third quarter of 1989 (see Table 2, Part A, in the Projection Tables Appendix). Clearly, if such a forecastmissed byaverynegligiblemargin,thiscould become a 'grwth recesion,' ie., a period of near zero growth but not an official wrecesson.' Highlghts of the Base Forecast Other features of the Base Forecast include: Interest rates rise as the Fed tightens. The prime bank loan rate averages 12.5 percent in the second quarter of 1989, implying a real prime rate of 7.9 per- cent-surely punishing to an already weak housing sector. The annual rate of housing starts drops below 13 million units in the third and fourth quarters of 1989. Automobilesales dropto annualratesof9.7and9.5 million units in these quarters. Unemployment rises exceeds 6 percent by the second quarter of 1990, sabizingwage compensa- tion at increases below 6 percenL The producers price index increases 4.4 percent in 1989, but less than4percent inthefollowingtwoyears. The mild- ness of the recession does not lead to low inflation, but largely eliminates the acceleration that would probablytake place otherwise. Executive Summary Reprinted by permission from The UCLA National Business Porecast, December 1988, by Larry J. Kinbell, Director, UCLA Business Forecasting Project, and Professor, Anderson Graduate School of Management, UCLA. A-1 (c) Copyright 1988 by the Regents of the University of California. Real Gross National Product (Billions of 1982 Dollars) 4400, Real Gross Nationa! Product (Four-quarter Percent Change) 8.0 I IiI I I I I I I I I I I I I I i I III I I I 1 8 4 1 I . 4 . 9 87. . .1. .. 1 9.. . 4 198&4 1985r4 1987:4 499 19914 The Unemployment Rate (Percent) 4.C 2.0 198824 1W9.4 19884 1984 1.4 Capacity Utilization (Percent) :4 V04:4 1V0.4 S W54 1VW4 UCLA Natinal Forecast A-2 4200 4000 8800 8600 8400 8200 3000 ) 0 I I I I I I I _ - nn - - - _ _. ............................... .1 SA I III III . -II The Optmistic Altematve Forecast The Optimistic Alternative Forecast calls for con- tinuing epansion on a relative steady basis. A ration- ale that is gaining currency is that specfic sectors and regions have undergone and will undergo recessions, but not the economyas a whole. First the manufac- turing and exprting sector was severely depressed, and with them, the central states. Then the energy producers, who continue to suffer. Perhaps nex the francial sectors, defense industries and coastal states Possibly the business cycle has been ended. Highlights of the More OpUmistic Forecast * The unemployment rate remains about 5 percent for three more years. Wage com- pensation inrases average about 6 per- cent, but productivity gains offset enough of thesc increases to make unit labor costs rise about 4-4.5 percent annualy. * Te federal deficit drops below $100 billion by the first quarter of 1990, maing it less than 2 percent of GNP. * Iterst rates do not drop as they would in recession, so the prime rate remains much hiher than projected in the Base Forecast, staying over 10 percent throughout 1990. The Lwer Defense AltemaWve Forecast The Lower Defense Alternative Forecast was ini- tially caied the 'More Pssmistic AlternativeW since itpredtsbowcrrealGNPthantheBaseForecastand highr unemployment But since other dimensions of the forecast may be viewed as more optimistic, we made the tite more literaL This simulation com- pares very drastic cuts in defense spending against a control forecast (not the Base) without recession. It asks: Can the budget be balanced with truly major reductions in defense spending, on the order of 20 percent below the alternative? The answer is pes- simistic in several senses, as follows: Highlights of the Lower Defense Alternative Forecast * Real GNP is slowed directlyby reduced federal purchases of goods and services. But resources 'liberated" by sharp reduc- tions in defense spending, surely below what anyone in these industries is expecting, mean that it takes time to get reemployed. If the adjustments to the cutbacks after Vietnam are representative, it can take several years before adjustments are com- plete in these direcdy affeeted sectors. * Unemploymnt increases in other in- dusties in the short-run, since reduced in- comes by unemployed defense workers leads reduced consumption spending. * The federal deficit is not reduced nearlyas much as would be calculated if the economy did not react negatively in the short-run the the cutbacks. The implication, well under- stood by President-elect Bush's economic advisers, is that a phased-in, gradual reduc- tion, holds better promise for adequate progress toward deficit reduction without severe disruption of defense procurement c Theunemployment rate remains about 5 percent for three more years. Wage com- pensation increases average about 6 per- cent, but productivitygains offset enough of these increases to make unit labor costs rise about 4-4.5 percent annually. * The federal deficit drops below S100 billion by the first quarter of 1990, makdng it less than 2 percent of GNP. * Interest rates do not drop as theywould in recession, so the prime rate remains much higher than projected in the Base Forecast, staying over 10 percent throughout 1990. Executie Summary A-3 Optimistic Alternative Forecast Optimistic Alternative Forecast for Rea GNP for the Unemployment Rats 440- (M _Mt - OpbtImel AIL m hia m Opmsloa AlREb. Fu.Iat Optimistc Alternative Forecast Optimistic Alternative Forecast fo Fedrl Deficit for the Prime Bank Loan Rate -400 - 1 1SSl USOu I .Us lao Mel IPl M QWil AIL ... Fomoas Om JUL Ela. Fo..a.l UClA Natio Forecast A-4 Lower Defense Spending Simulation Alternative Assumptions about Real Defense Expenditures L 1W2 S 240-l 12 mLo. Dedne Alt. S en Fort Lower Defense Spending Alternative Forecast for the Unemployment Rate PtoM 6.0 Lower Defense Spending Alternative Forecast for the Real GNP (30 M2 0) 4 . . . $a(M. I I I M Low Des.. Mt M Contol Foroa Lower Defense Spending AlternatIve Forecast for the Federal Deficit " uIII 11 6.6 6.0 190861 *l61 1990:1 1i1:1 - Lower Defase Alt M Control Forecat Executve Summary 19061 1989:1 19901 lool9: M Lower Defense Alt M Control Forecast A-5 a - . Consumption Needs to Slow Stock Market Crash of October 1987: What, Current Outlook Almost as Pessimistic as Me Woory? ExperIence of 1981482 Theequity share of household net worth took sharp The resuing oudook for consumers is cuiously al- dropwhen the stock market crased i October 987, most as pesimistic as the experience of 1981- That as shown in the chart below. Consumer sentiment long recesson hardly reduced consumption spend- reacted veyrapidly and initially quite negativly, but ing, as shown in the chart belowor in Table 1, Part B). optimismwasrestoretdinafewmonths. Asfaras Real cosm pio greow L2 and 13 percent in 1981 11 I . spending, the,Crash was a real bore. A and 1982, despitc the worst recesion of the postwar mild eion w tend to dpress om mr senti- era. mentte rary, but not nearlyas badly as the 1979- 82 period. High inflation combined with high Redusin consumer spending allowcxpanding unemployment to make the misey inde (sum of exports to be produced with less threat of in on, thesetwo)veryhigh. Thecurrentouook isfarmore andinthissense, amild, consumer-led recession isa sanguin for consumer atfitudes than in the previous policyobjecive, rather than a thrat to the long-term period. goalsforastableeconomy. Theoudook calsforreal -consumpton spending to grow 22, 03 and 2.4 per- cent in 1989, 1990 and 1991, respectively, dosely in Consumer CredIt Is More Worisome linewithrealdisposableincomegains Cosue optimism eventualy needs to be backed by purchasing power. Although retailers are cautiously optimistic about the Chrimas season for Consumer Ensuy Costs Low and Declining 1988,(asshownbby reaivlyleaninvatoayaceumula- Shar of Diso ble Income tionution sinsabound. FWitsrecently,co yume Lowr oi pis and efficiencygains have enabled credit o nding ws almost 19 percent of dis- consumers to cpand purchases of other goods and posabe income, hger than trends sugest can be servicesbyahnostthreepercentfromtheearlyl98os mnaintained. Th forecast cags for conmers to to the late 1980s, as shown in the chart below. One reduce debt levls by more thn a percnte point co e is the gains in effidency of energ use, over the o ngv year Second, the savings such as higher average miles per gallon in domestic rate is so low that inc d read spending cars,arehardertomotivate. Isthisanopportunetime surely needs to be witnlimits set by nomc growth to itroducehgher taxes on the use of gasoline? Or, since -.g domestic in ives to explore for petroleum is an imporant policy objective,should we introduce an oil import fee? We won't read someone's lips if he wants to cal this revenue enhan- cement ..no tax increase.' Consumer Spendg A-6 Real Disposable Income vs. Real Consumption Expenditures -(BIL 1982 S) 1070 16 16 1066 1987 1060 -Income -4- Consumption 1001 Equity Share of Household Net Worth (P_eent) Savings Rate vs. Real Treasury Bill Rate wt4 tIl-~ ~ ~ ~ Ine o onuerSntmn Index of Consumer Sentiment (SRC, U. Mich.) 0.70 * .80d. 01 311 1079 1981 16 1986 1987 1060 1001 - Savings Rate I- Real Inteest Rate UCLA National Forecast A-7 2200 20J0. 18.0 16.0 14.0 12.0 10.0 sow | 28w- -. - ZBUU r / =*W | r SF ? .1111111111:3!iii;i?- Im . . . . . . .1. . . . . . . . . . . . . . .1. . . . . .I 1 I , I. . . .I. . .I I , , ! I Consumer Credit Outstanding (Share of Disposable Income) (Percent) 19.0 18.0 ~ ~ laDlh 14.0II 1979 ml1 leis 97 # 19 Retail Automobile Sales (Millions of Units) Consumer Energy Costs As a Share of Disposable Income 8.0 7.0 6.0 4.0 1 1 1 1761761771781791801e Consumer Spending 81182183184I85161881"8919O01911 Efficiency of Domestic Cars vs. Real Price of Imported Crude Oil miIs/Oaiion 1982 $ 20 16 5 I $10.00 0 $0.00 1976 1979 1983 1987 1991 - Efficiency -4- Crude Oil Price A-8 $40.00 $30.00 is 4 0 L?? I - - wou l os . . *sX l ouw ___.__ in. &^ | son t, I I I Investment Expected to Weaken Busine Fixed Invesmnt Hit H dest by Reocsseon Th prediced recession wi hit hardest the most cclic sectors, such as real investment in producers durable equipment. This tpe of investment is predicted to drop at annual rates of 63% 7.0 and 6.9 percent in the three quarters begning in thc fourth quarterof 1989. The oresidential stuares sector has alrea beendendbytaawreforwmadlowolpriceL As dowain the hubtbelow, tis seor has been as depreedaitwamur dinte Istrecssio.L Office and i strl bu n cAnsrci gmw 17.0 and 12.3 percnt in 1984 and 195, but fel by modest amouns in the nes thre years (inluig 1988). Much loger deedao les accots for a si- t part of this reducto in activity. Petroleum ea fel 412 pacnt in 1986 and nother 9.2 prcent in 19, with le or no recowy in si Utiliy consrutio has been faiy fit during this Housing WIN Be from Lower Intet Rates Theinitialimpactsofarecessionperiodcanbehard on invstment in resdential construction activity. When the Fed tightens to fight inflation, and raises in- terest rates, housing is the most affected sector. Hiher unemplomnt and reduced incomes also hurt Hoever, oce the recession bngslower inter- est rates, housing can be one of the first to benefit and recover. The oudook accordingly calls for housing starts to rise from 13 milLion units in 1989 to 17 mil- lo umits in 1991, the higest level since 1986. Real eape andites on eSident srctures nase 11.7 percent in 99, by far the strngest apansion in the recveyperio Len Ientois Favorable Factor Inventor accumulationwas hh for two quarters in the Crash period, but were brought to lower levels of accumulationwithoutaclassicinventoryrecession. It appears that inventories are relatively wei under on- trol currentl, and thiswsev to maethe oudok for a recession nty more favorable than other- wise. The outlook calls for real inventory change to stay podtive and be $37.7, S12.4 and $16.2 bilion (982 dolars) in 1988, 1989and 1990, respectively. In the last recession, inventories were liquidated by S24.S billion in 1982. Investmet Spending A-9 Real Investment in Producers Durable Equipment (Billions of 1982 Dollars) Real Investment in Nonresidential Structures (Billions of 1982 Dollars) Housing Starts (Millions of Units) Change in Real Business Inventories (Billions of 1982 Dollars) UCLA National Forecast A-10 - | rou r - - - - - - - - The Second Coming of Rosy Scenario Optimistc Forecasts are Predic e. The first forecasts released by the Reagan ad- ministration were so optimistic that they were per- sonified as '...Rosy Scenario.' Overly optimistic forecasts are predictable in the first few weeks of a brand-new administatosince the economic team is stllbeingassembledandoptimismbuystime. Butthe Bush administration is really a continuation of the Reagan Adminisain to a signifcandtygreater ex- tent than is normal when the Presidency remains in control of the same Party, not only because George BushhasbeenVice President,butalsobecauseJames Baker will be the domiant economic figure in the next administrain Additinally, RichardDaman, adowsealyofBakeratTrea y,wllbeheadofOMB, and Nicholas Brady will continue as Treasury Secretary. This team may surprise us with forceful proposals to reduce the deficit but the campaign showed no sign of such courage. Risks In the Grow Our Way Our Strategy The 'flexible free' essentially asks the Federal Reserve Board to support a policy of rapid real growth of the economy, arguing that fears of capacity constraints, boeeck in production and accelerat- ing inflation are overly pessimistic. (The optimistic alternative forecast, diussed above, examines some of the implications this strategy may hold.) The economy, it is hoped, would then generate so much tax revenue that the budget can be balanced without major budget cuts nor any major tax increase. Recall that the last time the federal budget was al- most in balance was under Jimmy Carter, when stimulativemonetary policy led to high inflation, and high growth of revenues. The last quarter before Carter became President the federal government raised 19.1 percent of GNP in taxes, and inflation, (measured by the four-quarter percent change of the all-urban consumer price index), was 5.1 percent. The deficit was then 202 percent of GNP. The last quarter of the Carter Presidency witnessed 20.6 per- cent of GNP going to federal taxes, obtained, in no small part, by ion of 12.6 percent But the deficit hadbeen reduced to a mere 0.2 percent of GNP. But the resources garnered by the federal government through high infation were surely not cost-free. In this simple sense, Carter raised taxes-but on holders of money balances, here and abroad, rather than by explicit tax increases. Wi those burwAd by the accelerations of ination from the late 1960s through the 170s wait as long as they did to shift away from financially vulnerable posi- tions? Specifically, wil the Japanese holders of federal bonds make passive donations to the federal deficit reduction cause? Not likely. Reduced Real Defense Spending Ukely Feature of "Flexible Negotiation" Big Defense Cuts Might Work The budget can approach balance through reduc- tions in federal spending below current services levels without a tax increase. This policy allows growth in total spending in current dollars, and even increases in expenditures on some inflation-adjusted programs, but it is not going to be easy. Our Base Forecast as- sumes that President-elect George Bush will reduce Government Revenues and Expenditures A-li the federal budget deficit to a smaller share of GNP. Specifically, we forecast that the deficit will be less than one percent of GNP by [991, less than one-fifth the size it was as recently as 1986. (See Table 1, Part A, in the Projection Tables appendix) The mild recesson which is forecasted does not prevent the deficit from shrinking annually from 1989 through 1991. This Base Forecast differs from the hints George Bush gave in the campaign that real defense spending would be held constant, since it assumes that real defense spending will be cnt substanially more than such hints suggeste. Specificaly, we as- sume that real defensc epedtewill drop from a peak of S264.9 bllion (1982 dollars) in calendar year 1987 to S235.9 bllion in 1991, wthannual percntage reductions of L9, 3.4, 33 and 2.8 percent in 1988, 1989,1990 and 1991, respectively. (See Tables 1 and 3 in thePrjecdon TablesAppendix) Ironically, this means that nominal defense spending would be al- most onstant hus, if the ncw BushAdminis shows flexibilityin n s asearly indiciations sug_s, the budget oudook wil be relative op- timisitic- Federal Deficit (Share of GNP) Recession Could Lower Interest Coss of National Debt Interest costs are projected to rise as a share of GNP during 1989, when the Fed forces rates higher to reduce the threat of ination (and bring on the reces- sion predicted). Howevr, significant reductions in interest rates are predicted by 990 and l99, leading to a reduction in interest costs of the national debt These costs are predicted to drop to 2.8 percent of GNPby1991,lowerthananyyearsince1983. Theop- timisticalternative forecast, discussed above, features continuing real growth, no recession, higher GNP but also higher interest osts as a share of GNP, since in- terest are so much higher as welL Real Defense Spending (Share of Real GNP) Pecent UCLA Natiorl Forecast A-12 The 'Rosy Scenario' is likely to borro its interest rate forecasts from economists projectingrecessios, but its red GNP foreas from ecnomists project- ingnorecsiou. AsAlice inWonderlandonce said, 'You may cal this nonsense, if you like, but rve seen nonsen the likes of which would make this seem as sensible as a dictionary.' At least such a forecastwill not be a conadictory as the early Reagan forecast, camelled together by the shotgun marriage of montarists and supl-siders. Reagan Revoluon Sightly Ante Pd nds A bnaetrtrospectev on the Reagan Revoluton s oarder. The potwar era has boee rh-Aractrfr by sval p evaling tends in federal budt poicy, shown inthe chabebow. * Defenshasgenerallybeshrinkgasa share of federal i in 1960, bng after Komoa but wlbefre tb d esecda- don in Vietam, defensending was 47 percet of the bdget. By 1991, we proect that dMen iw be 24peret of federal en- penaiture Reagan' bouw shifted diec- dons to a deci Dewtd,but was not staiwed long enoug to caq, to ay majorcxtent, the actual shares spew on defense. * Personal transfer payments have generally been rising as a share of federal expendi- tures. In 1960, these payments were 23 per- cent of the budget,whereas by 1991 we project that theywill be 42 percent Reagan policy may have arrested the growth, but did not reverse the trend. * Corporate profit tans havegenerallybeen falling as a shareof federal revenues in the postwarpariod In 1947, corporate profit taes aodt24 peroent of the total, wherea by U91 we project that they will provide ony ilpercnt of revenues. * Social securityms contbuted only 14 percent of federal revnues in W947, but wMl rmach 40 percent by 199L * Personal income taxes conbted45 per- cent of revenues in 1947, and will provide 44percentin 199L There are two interpreions to theseobservations- (1) There was no Reagan Revolution. (2) Forces that prmiled earlier are very persisent and nearly impossible to reverse. The latter interpretation should wa Gorge Bush that by his 16th year as President or Vice Pidet (ming a second elec- tion to the Presidenq), the federal gomen t may be slightly off the course being followed by his Govenment Revenues and Expenditures A-13 9hee of Feera Expedhe spent on Vaio a e I= Shwes of Federal Expenditus Sent on Vario Catgoris 1991 4Tn Mt of Suit 241 I , Mt ostd gs ift estn aD us Federal Budget Shares Spent on Defense and Transfer Payments Prcent - Defense - Transfers UCLA Natironl Forecast A-14 Wm 45 Sha of FedrS Tama Con*ng frm flu sources 1947 iopra profits 245 i t' n''. _ff .. . Sti . . .. ., .Sl bare of Federal Taes Con*g frn Valous Source 1991 PnSl ln 44% i 011 '... ;$ 11 ''~ , .. il. , ; .. ' . J" ent4kIdtuirIl- lies -on-, Waas a > , ; c 9. g .s- f).< s V BSC r - Corporate Profits Wages (Sot Sc.) Governent Reveand Expen rs A-15 'I A-.- I , t -Ie:. . "t ' "".. ., "I" . 7f 1 ".1 . e z . ' . - 1 1 Export Sector Outlook Strongest American Industri Competitive at Current U.S. Dollar Decline Could Be Over Dollar Levels ItisveryhardtofecastmovementsintheUS.dol- The eort sector has grown vety strongey in 1987 lar, but judging bythe imprement xpected in the and1988,whenincreasesinrealexortswere13.1and merchandise trade deficit, it appears that the dollar 18.1 percent, respect*. The lower value of the islowenoughtomakeUS.goodscompetitiveforthe US. dollar against major trading partners has made ne3xtseveralyearswithoutfurdierdeclines. Asshown Americanmanufacturequitecompitive. Areces- inTable 14, all major categories of exports have par- sion may finally encourage (or force) consumers to ticipated in the export boom. stop buying as manygoods of from al nations, there- by reducing imports. The near-term outook for im- provement in the trade balance is very favorable Payments for Imported Crude Oil Ukelyto compared with the past or more distant future. As Rise shown in the charts below, the projected phasehaead Payments for imported crude oil were $S57A billion is the opposite of that which prevailed in 1984 and inL984,butwlldroptoS39.0billioninl988. Byl99I, 1985, when the US. dolar was strooger. Real im- howe, , paymentswllreturntothelevelofl984,ac- ports are projected to gow 6.4 percent in l989 but cording to our assu about the price of im- fat 13 percent in 1990. Thelastreduction inimports ported crude oIL We assume that oil prices will rise was in 1982 arecesionyear. from an average lvl of $145Ubarrel in 1988 to S17.91 by 199L As shown in the charts of the next sec- uon on rnsces, msmpues a rezauyesy staowe real pnce of imported crude, Exports and Imports A-16 U..S. Dollar Exchange Rate (1980-82 1.00) I I 1I. : 11 . _ s4 198:4 184 Real Net Exports (BiL 1982 S) 700 - 86( eOC 66C 60C 48C 40C 36C Real Exports Versus Real Imports (BiL 1982 S) 19624 1984:4 1988 19884 19904 m Real Exports - Real Imports Merchandise Trade Deficit (SL s) -10 -120 - 1 l -180 1982:4 1984:4 19884 19884 19904 UCLA National Forecast A-17 1.3 1.2 Eu 0 -40 -80 -120 1982.4 1984:4 1988:4 1988:4 1990:4 1 I . ,,l . ru | -ISO .! .. ..' . . . ' '' ' ...''' ..''I .. ''' I.. . . ' " ' ...I' I2o. .......... ............. ... a I I ?? I I .11 I 11- Iflation Shows Signs of Accelerating Wages Stat to Ris Faster After a long period of stabilit, wages have started to show igns of acel ion. The increase in wage compensaomin the nonfarm busine sector wil be 4.6 pecen in 1988, the highest increase since 1982. The third q ter of 1988 showed an even faster in- crea, an anual rate of5.6 percen Unemployment issolowinmanystates that the minimumwage isir- reevn-no oe can be found to workat those wages. Recession WMI Halt Productity Gain If the predicted receson follows course, produc- tivity wM stop gwisat best, and probably wilifan duing the recesion Unit labor cost will therefore acclerate even more than wages. Unit labor costs are predicted to increase 4.6 percent in 1989, 50 per- cent fister than in 1987 or 1988. Prke Shocks May Be Perve Recetly farm prices have increase due to the dout but dedig oil prices tended to offset the foodpriceshocd Theoutookcallsforcooudmuingin- rcases in frm price, although at reduced rates, but rismg ol pices, at moderate rates. As hown in the chartsbeow,racrudeoiprcesandrealfarmprices are boths depressed rda to levels of 1982 and L974, respectively. The price increases predicted are very small relative to previous dedines. When Will Fed Get Tough? A key question about the current outook i$ What level of infaton is acceptable to the Federal Open Market Committee? The ostensible answer is zero, and nothing higher. But no urgency has been ex- pressedwhen inflation was about 3 percent. It seems cear that no member of the FOMC wi sit idly by if non-firm, non-energy inion rates threaten to ex- ceed 5 percent for an extended period. Indeed, it does not seom likely that 4 percent iw be tolerated. Bush Administration Might Be Better with Early Fed Discipline The economy could slow to a growth rate of about 2.5 percent and the current slack might suffice to allow core inaon to receed to, say, 3.5 percenL Tis isour intcrpretation of the Fed's target. Recent evidence suggest strongly that itwould be dangerous to bet that the finest of tuning can be achieved. A recession early in an Administration's life is not all bad. Maybe President Bush should encourage the Fed to excercise discipline early in hisadministraton, as it did for Reagan but not for Carter. Pris A-18 Inflation Measured by Consumer Price Index Producers Price Index (Four-uarter prcent chtng) A 0 198&4 In" =T4 086&4 IN" . Conmer Pri. - Produc Pr... Real Price of Imported Crude Oil (1002 Dollrs per hrrO $40.00(INDl W am $30.00 $20.00 $10.00 $0.00 I Wage Compensation and Unit Labor Costs (Four-quarter percent change) 2.0 - 8.0 - I 1.0- 4.0- 2.0- n. , 0. - Unit:1 abor 1Cs W1 ClWU:l t = Unit Labor Cost M Wage Compensation- Real Price of Farm Producers Prices (1982 - 1.00) UCLA National Forecast A-19 The Outlook for Financial Markets MIld Recesion May Be Opmritic The stock market has osionly be a valid lead- ag e iodicator. Las yea, itclearlywas far offthemark(tak gour forecastalong wihit). What wre likely dock maket reactioa I analysts widely ac- ceptedour iw ofhe economy? Onecanarguthat a mild rcession, which ltporay depresses raporo pft, but reduces the threat of inflaton, lwe iere s and s* the stoa for anoter long ePansPio wi be vieWed wihout alarm in prospect, ad wih f r if mattrs deep tbat way. Yid Curve Flatn THe past year has seen a vtay flatten- in d of thue yid awrve, the seatisp bween= short, intrmedibteand long term interest rates. As shown in the chart below, in the third quarter of 1987, the treasmybElratewas b below the rates on 3-5 yea goment notes or 30 ynt bo By tbefourthquarterof 1988,i U short rates and relatively stable long term rates had Produz darelativeyflatyieldcurve Atrulyivrted yield sve, wih short rates we above log rates, has been a leading indicator of receion in the postwar period. As shown in the hart comparing the prime bank loan rate with the new mortpge rate, we an- ticipate that Fed tightening will continue unil short rates exceed long rates. The folowing recession res- tores the more pical upward sloping yield curve by the second half of 1989. A Prolnged Period of Credit Stringency Sen UnUkely Wil the Fed stay as tight as long as it did in L981-82? Certainly not, for many reasons. First, the inflaton momentum then had been building for 15 years, wheas now it isjust beginni to get rolling Beyond this basic policy consderation,the financial system is not in good shape to stand a prolonged period of strain The savings and loan bailout will be costly without any crunch, and a period of a year of more couldmake the situationfarworse. Corporate use of heve has made many more companies vulnerable to a downturn, especially if induced by higher prime interestrates Consumerdebt,mentionedabove,also contrains the Fed. Many more consumer now face increases in adjustable rate mortgages, and liquidity pressures that were not present before. Financi Market Oudook A-20 Corporate Profits Before Taxes Standard and Poor's 500 Stock Price Index (Bit s) 7 " Interest Rates on 90-day Treasury Bills, 3-5 Year Notes and 30-Year Bonds Ptrm iN _ NcUmamf iwi:a M em t vee li- Prime Bank Loan Rate vs. New Mortgage Rate Percent 14.0- 12.0- A 4.0 1982.4 1984:4 1986.4 198&4 1990:4 - Prime Rate -+ Mortgage Rate UCLA National Forecast A-21 400C 1 300 | X B. WAGES AND PRICES EMPLOYMENT ISSUES FOR THE NEW ADMINISTRATION SPECIAL FOCUS Daniel J.B. Mitchell, Director, UCLA Institute of Industrial Relations and Professor, Anderson Graduate School of Management at UCLA Paper for the UCLA Business Forecasting Conference, December 14, 1988 With the decade of the 1990s only a year away, and with the presidential election behind us, it is ap- propriate to take a somewhat longer look at the labor market than I have usually presented at these meet- ings. What issues will arise in the employment market duringthe new adinistration? A look toward the fu- ture reveals a variety of upcoming pressures on prac- titioners in the human resource field and some unresolved problems. It doesn't necessarily reveal what we would like to see. But at least we can be prepared and avoid unpleasant surprises. 1. The Recent Past: General Economy. The past year was a surpise. After the October 1987 crash, most forecasters expected at least a slowdown in growth, and - of course - UCLA projected an out- right recession. While some softness in the economy appeared in the post-crash period, the uncertainty and fear created by the crash seemed to evaporate by the second quarter of 1988. Figure 1 shows the trend in business loans outstanding from large commercial banks. Since loans represent a business commitment, they can be taken as an index of confidence. Las were flat unti the second quarter when confidence seemed to retur, then surged upward, Iveling out by mid-summer, as economic growth generally slowed. What about the monetary policy which accom- panied this period? Figure 2 shows the trend in the MI money stock measure. The Federal Reserve's bail-out of the market in October 1987 is clearly visible. But policy thereafter seems erratic At first the Fed sucked out the money it had infused into the sys- tem, apparently fearing excessive stimulation of the economy and possible resulting inflation. Then it wor- ried about recession and reversed course. This in- and-out pattern characterized 1988. The volatile pattern of monetary policy reflects an important lesson from the stock market crash: Linkages between financial markets and real activity are much more attenuated and imprecise than many economists have thought was the case. Thus, it is much more difficult for the Fed to determine or fol- low an appropriate monetary policy, since no one can be sure what particular monetary policy is in fact ap- propriate. We may not be flying blind into the 1990s, but at the macro policy level it is certainly foggy out there. From the human resourceperspective, this new macro realitymeans that employers (and unions in or- ganized situations) must be prepared to deal with a more uncertain economic environment. The volatile movements of the dollar exchange rate in the 1980s, which had the effect of changing US. competitiveness abruptly, simply add to the uncertainty. Who is to say the l990s will not also include such episodes of dramatic dollar appreciation and depreciation? 11. The Recent Past: Labor Market Figure 3 shows the trend in unemployment during the past year. As the national unemployment rate fell below 5%, labor shortages - which had previously been confined to the northeastern states - began to in- vade other areas. To be sure, there were special cir- eumstances in particular industries. Nurses and other health technicians were in notably short supply, but wage setting in those occupations has long been thought by economists to reflect employer coopera- tion in keeping pay low. Fast food operators, and otherswhotraditionallypaidtheminimumwagewere affected by a lack of increase in the minimum since 198L The queue of workers dried up as the minimum wage became unrealistically low. With unemploy- ment falling, these employers were forced to behave like others and compete for labor. But all that being said, there is no doubt that an unemployment rate below5% sigaifies a tighter labor market than the 7% rate which characterized the mid 1980s. Special Employment FoCuS Reprinted by permission from The UCLA National Business Forecast December 1988. Copyright 1988 by the Regents of the University of California. B-1 Figure 1. Business Loansl/ (Commercial & Industrial) Weekly Reporting Large Commercial Banks2/ Seaeonally Adjusted 306 PfopfOd by fdedflt RW{fW Bank of St Louis Latest data plotted wook onding. OctobOf 20, 1@JJA 300 l 29C 290 C 286 1987 18 280 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT I/ Desele b"no IAWu4 haeI ao,eptnoJw a 00r P. DP S/ Benks with dewetle eeete gfsatof thtan J1' bOilles Figure 2. Money Stock (Ml) Daily Averages (Seasonally Adjusted) Billions of Dollars Soure Fsfe Fl Ree , nk of tL Loue 790 Ml Is th SUN of conwnoy bel0 by the nonbanl public 780 770 1 760 A AA/ 750 5 -_ Curfent date apoer In the 1)d of Oowrnt J JL Releas SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 19is 195 Latest data plotted week ending Octobe, 31. 1909 UCLA National Forecast B-2 Figure 3. Civilian Unemployment Rate October 1987 - October 1988 (Percent) 0 N D J F M A M J J A S 0 Notet Data are aessonally adjusted. goure: U.S. voavu of Labor Statistics. Figure 4. Change in Employment by Establishment Size (Annualized Percent Change 1979-85) 2 1.8 - 1.6 _ 1.4_ 1.2 - 0.8 0.6 0.4 - 0.2 0 -0.2 -0.4 -0.6 W :1-20 Special Employment Focus :20-99 :100-499 :500-999 :1000+ Employment Size Clas B-3 Byitself, of course,atight labormarket is desirable. 1980s despite the general job growth that occurred. What is not desirable is inflation as a byproduct of Thus, both unit size and firm size did shrink. such tightness. Inflation could lead to a restrictive monetary policy which - given the imprecise link be- Generally, smaller employers have tended to be less tween monetary developments and economic activity able to provide secure job attachments and generous - could easily cause an overshooting and a recession. fringe benefits than larger ones. So, again, concern over job security is raised by this trend. In addition, Ill. Structural Changes In the 1980s. Congress has been interested in the 1980s in spread- ing fringe benefits - especially health and pension One of the big news stories of the 1980s was 'dein- plans-morewidely,iLeto low-wageworkers.Atrend dustrialization,' generally taken to mean the decline to smaller employers thus puts public policy in col- of once substantial manufacturing industries (1). lisionwith economic trends. Steel is perhaps the best example. Payroll employ- ment in steel (SIC 331) fell from 570,500 workers in It has been argued that the shift to smaller 1979 to 274,600 in 1987. Generatly, employment fell employers is a symptom of the spread of "flexnble in all of manufacturing over this period, but by specializaton," a development made possible by new nowhere near the rate experienced in steeL Thus, technology (2). According to this view, rather than therehasbeenashiftinthecompositionofmanufac- mass production, the wave of the future will be turing employment from older to newer industries. smaller, customized production units which adapt For example, even with the weUl-publicized over- rapidly to changing markets. In such a world, there capacity in computers int he mid l980s, employment wil be apremium on employees who are up to date in office machinwy and computers'roae by 15.6%- in their technical skills and a need for continuous during l979-87, asteel jobs dedinecd. retaing4Not everyone, however, may be comfort- able with their current skis nor with their ability to The general resticuring of industry - including absorb new ones. The notion of a shifting labor well-publicizedmergers, takeovers, acquisitions, and marketbothmakespeoplenervousaboutjobsecurity divestitures-didhavetheeffectofheighteningaware- and focuses-renewed attention on the deficiencies in ness ofjob security (or inserity) at all occupational our formal educational institutions. levels. Studies by the US. Bureau of Labor Statistics suggestthatthosewhoweredisplacedbymasslayoffs There have been fears that recent economic trends and plant closings often suffered prolonged periods have served to make income distribution more une- of joblessness, and often eventualy had to settle for quaL This issue is a complex one. It is certainly pos- jobs at lower rates of pay than they had previously en- sible to find evidence of some shrinkage in the middle joyed (2). The job security issue has already been class, although whether those departing the middle reflected in the Congressional legislation of 1988 re- aregoingupor downisopento question (4). What is quiring 60-days advance notice of mass layoffs and clear is that average real paincreases have not been plant closing Moves for related job protections can what they used to be, as Figure 6 makes clear. Some beexpectedinthe 990satboththefederalandstate of the decline in real paygains is related to produc- levels. tivitygrowth trends. However, the pick up in produc- tivity in the 1980s has not been reflected on a Another notable structural shift of the L980s - a one-for-one basis in real wage improvements. change in average firm size - has implications for the human resowurce outloolk Figwe 4 - based on data IV. The Employer Obligation Movement. from County Business Patterns - indicates that employmentgrowthhasbeenconcentratedinsmaller Because of the economic uncertainties they face, establishments. Indeed larger establishments have employershavebeenseeking ways of enhancingtheir tended to experience declining employment in the "flexbilit in dealing with employees. The quest for 1980s Establishment size and firm size are not the flexibility has expressed itself, for example, in the same thing, although the two are correlated. But growinguseofcontingentworkers,suchasofficetem- Figure 5 shows that the largest companies, the For- poraries (5). However, employees are not necessari- tune 500, experienced employment declines in the ly delighted with this new flexibility. Pushed to its UCLA National Forecast B-4 Figure 5. Change in Employment 1979 - 1987 (Millions) 13 12- 11 10 7 - 6- 4 3 Y 2- 0 -1 -2 -3 Fort 500 payroll emp govt emp private empl Figure 6. Change in Real Compensation Per Hour (percent Change) 2.6 2.4- 2.2- 2- 1.8 1.6 1.4 1.2- 1 0.8 0.6 0.4 0.2- 0 1947-73 Y1973-79' Y1979-87 Note: Data are at aaeualInrd rates for the nonfarm busanessa sector. Specia Employmen Focus B-5 limit, a completely flexible labor market would look like the informal job exchanges found on street corners in Los Angeles and other cities where illegal aliens are hired for a day's worl Such markets are not noted for providing income security. While employers have been seeling freedom from fixed obligations, employees have been using avail- able legal means to enforce a concept of employer obligation. Wrongful dischage litigation, especially in California, has become a major concern of employers during the past decade (6). Employers have been forced to pay damages to fired employees under a variety of rationales, including implicit promises made at the ime of hire or in personnel handbooks. Apart from wrongfU discharge cases, which can be costly for workers to pursue, nonunion employees have used available forums, since as woklers' com- pensation laws and equal employment opportunity (EEO) laws as de facto grievance machinery. Ads regularly appear in the newspaper from law firms eager to process claims of occupational stress. EEO complaints are often really grievances about workplace treatment that have been tailored to meet therequirementsoftheavailablepublicforum. Issues of age dS aion are frequently really issues of treatment of long-service employees, since age and seniorityarecorreldespecialyformales Because onlyaboutafifthoftheworkforceisnonunion,private sector, white, and under 40 years old, the remaining large majority of employees has some EEO forum potentialy receptive to their complaints. From the human resource perspectve, the litigation problem can be viewed as one of defining the employ- ment contract clearly. At present, the relationshipbe- tween employer and employee is often ill-defined. Employers in the past viewed this fuzziness as a way ofpreservingtheir fleibility. Now, however, fuziness maybeleadingtoreducedflexbtandcostlyexter- nal adjudicati V. Develpments in the Union Sector. During the 1980s, developments in the union setor can be divided into two related categories. member- ship and bariing resul sAs Fgure 7 shows, union membership declined in absolute terms by a sig- nificant margin, with the losses concentrated in private employment. At the same time, private non- union employment expanded so that by 1987 only 14% of private wage and salary earners were repre- sented by unions (and a still smaller fraction were union members). The drop in union membership during the 1980s is only partially a reflection of changes in industrial employment composition. Only about a fourth of the drop (one fifth in the private sector) can be explained byshifts in employment between industries (7). Four fifths of the drop occurred because unions lost mem- berswihindustrial categories. Insome cases within industries, older union plants or companies closed while newer nonunion plants or companies developed. Unions also faced strong management resistance to new organizing and a less friendly climat atthe National Labor Relations Board. As Fgure 8 shows, during the 1980s unions con- tinued to win 4S-50% of representation elections. But the number of elections actually held (mainly at union initiative) fell roughly in halL Unions were not replac- ing enough members through NLRB elections to keep membership constant. Even when they won elections, unions often had difficulty in negotiating a first contract with the employer. The weakening of the union side was reflected in a marked decline in strike activity, as Figure 9 il- lustrates. Concession bargaining - defined as first- year wage freezes and cuts - became widespread as weil (Figure 10). To the extent that the membership losse within industries reflected new nonunion com- petition, bargaining power on the union side was clearly diminished. However, there have been some developments in recent years which suggest a diminution of concession barning Manycontractsinthemid l980sbeganto include lump sum bonuses, often in the first year of the agreement. Such lump sums often represented da fa=wage increases.Thus, the concessions shown on Figure 10 should be adjusted to remove contracts with lump sums. Once this is done, it can be seen the con- cession bargaining actually peaked in 1983-84 and then declined. The effect is further accentuated if contracts with active cost of living adjustment clauses (COLAs) are removed. Fmally, a narrow definition of a concession - limited to contracts with first year UCLA National Forecast B-6 Figure 7. Union - Represented Workers 1980 - 1987 (Millions) 1980 981 1982 1983 1984 1988 198r M All E Private m Govt. Figure 8. NLRB Election Experience Fiscal Year 1979 - 1987 Elections (OOs) and % Union Wins 1979 1980 1981 1982 1983 1984 1985 1986 1987 - Elections (OOs) 2 % Union Wins Special Employment Focus B-7 Figure 9. Number of Work Stoppages 1979 - 1988(e) (No. of Stoppages Beginning in Year) 240 220 200 180 160 140 120 100 800 so 60() 40 20 0 1979 1980 1981 1982 1983 1984 1986 1986 1987 1988 (No Aenualdaud baesd on data through July 1966. Figure 10. Concession Bargaining 1981 - 1988 (Number of Contracts) 600 400- 300- 200- 100 81 82 83 84 85 86 87 88 Minus Lumps Minus Lumps/COLA --*- All Freozi & Cuts Decreases Note: 1966 data are based on the first 42 weehs of the year on an annualIzed basis. source: sureau of National Mlfalrs. Inc. UCLA National Forecast B-8 wage decreases - also shows 1983-84 to be a conces- sion peak. Contract provisions associated with concession bar- gaining have shown decreased frequency. Figure 11 reports on the incidence of two-tier pay plans, lump sum bonuses, and coverage by COLA clauses in new contracts. Two-tier plans - underwhich newhires are paid at lower pay scales than those of incumbent workers - peaked at about 10% of new contracts in 1985 and have steadily declined since (although the stock of contracts with two-tier features rises as new contracts are brought 'on line). Lump sums peaked in 19 and dropped during the first three quarters of 1988. Eliminating or freezing COLA clauses was a major managementobjecivein the 1980s, mainly be- cause management felt burned by large COLA wage increases in the 1970s. COLA coverage in new con- tracts did decline during the mid 1980s, as Fgure 11 reports. However, coverage has begun creeping up again, as inflation has also increased, more recently (8). There are other symptoms of a tightening up of the union bargaining position. During the mid 1980s, union wwes tended to rise more dowly than non- union. But in the year ending September 1988, union and nonunion pay on a total compnsationbasis - in- euding benefits and lump sums - rose at the same pace (45%). In blue colar occupations and in manufacturing, union pay rose faster than nonunion. Apart from the tangible numbers, there has arisen an intangible element of rank and file and local offi- cial dissent Thus, the Chrysler contract of 1988 was almost rejected, apparentlybecause it did not include an initia base wage increase (although it did include lump sums, COLA, profit sharing. and other im- provements). Contract rejections or ratification problems arose in trucking, rubber, and electrical equipment in 1988 as well. Unonshavenotsolethrmembership problems, and they will continue to face this diffiaclty in the 1990s. But for those employers that are unionized, barpiningislikelytobecomemorewage oriented(as in the pre-98 priod) and less cncessionay. Pat- tern barining is showing a re-emergence, although, of course, it covers a smaller sphere since the union sector has shrunk VI. Changing Demographics. Two important changes are projected to occur in the workforce by the year 2000. First, the workforce will age, as the baby boom gets older and as the baby bust generation which followed it fails to replace the boomers at the younger age brackets. As Figure 12 shows, by the year 2000, the median age of the labor force will be close to 40 years. Second, the workforce will continue to feature growth in the proportions of female and minority workers. Figure 13 presents the proportions of the labor force which was female, black, Hispanic, and Asian, in 1979 relative to the year 2000 projections. As can be seen, by the turn of the century, womenwill make up close to half of the labor force. Blacks, Hispanics, and Asians combined will make up about one fourth. The aging tendency will reinforce public concerns about job and income security. Members of an aging workforce, especially as dependents and other obliga- tions are acquired, will be anxious to avoid involun- tary displacemenPublic policies can be expected to reflect this concern, as the political process caters to its median voter. Similarly, the changing sex and eth- niC composition of the workforce suggests that EEO issues wil remain active in the 1990s. Comparable worth, which received so much atten- tion in the late 1970s, has become less of a concern, because of the rise in the female-to-male earnings ratio. Bythe third quarter of L988, the ratio of female- to-male usual weekly earnings for full-time workers had risen to 71% (up from 63% in 1979-IHl). There is evidence of declining occupational segregation by sex, but issues relating to promotions, career tracks, and advancement will still be important, especially for women in professional and managerial occupations. Questions ofcild care and maternity leave can be ex- pected to be aired in the political arena at the federal and state levels. VIl. Education and Training. Productivitygrowth deteriorated substantiallyin the 1970s for reasons which are still debated. Some recovery is evident from Figure 14 in the 1980s, but the pace of productivity improvement is nowhere near its old leveL I the long run, slower productivity growth reflects itself in slow gains in real wages and Specil Employme Focus B-9 . Note: Data on lump-sun and COLA incidence refers to major private contracts (contracts with 1,000 or more workers). Figures refer to the proportion of workers under such contracts with lunp-sum or COLA pay provisions. Data on two-tier contracts refer to contracts covering 50 or more workers. Figure 11. New Union Contract Provisions 1981 - 1988 Percent of Workers or Contract 1988 Lump-Sum Wrkrs (BLS) + COLA Wkrs (3 yr av) $- 2-Tier Contr. (BNA) Source: Two-tier data from Bureau of National Affairs, Inc.. Daily Labor Report, various issues. Lump-sum and COLA data from U.S. Bureau of Labor Statistics. Figure 12. Median Age of the Labor Force 1962 - 2000 -I 1962 1972 1979 1986 1996 Note aDa tao 196 and 2000 are prjecttons ot the U.S. Bureau oa Labor Statlatica. 2000 UCLA Natonal Forecast B-10 laft of AG* DUI 40 30 20 10 ot Figure 13. Civilian Labor Force Composition % Represented by Various Groups women Hisp'nis Asians . 1979 M 2000 Source: U.S. Buteu of Labor Statlitics Figure 14. Change in Nonfarm Business Productivity (Percent) 0-1 Y1960-73 Note: Dote are annualled. Special Employment Focus Y1973-79 Y1979-87 B-li 40 30 20 10 0 2.5 2 1.5 F 0.5 F nul I livingstandards, circumstances capable of producing coverage for displaced workers. And at the state level social and workplace frustrations. notably in Massachusetts, mandatory health in- surance was either introduced or being debated. The The public spotlight has increasingly turned towards 1990s will feature further efforts to mandate benefits education at all levels as a means of smoothing the or otherwise extend them. Generally, the area of transition to work, securing economic advancement, benefit administration will become an increasingly raising productivity, and providing needed skills. complexand contentious element of human resource There is concern within the employer community, management. especiallyduring the current period of low unemploy- ment, about the quality of new entrants to the IX. Summary and Predictions. workforce. Although survey evidence suggests that American students are more interested in the In the 1990s, the conflicting pressures for security economic return to education than ever before, (9) it and flexibility will require a better definition of the is not clear that they are being better prepared for employment contract. The employment relationship work, either in basic skills, or at higher levels. Doc- will become more formal and explicit. Written con- toral programs, for example, are increasingly popu- tracts maybe used in some cases. Or employers may lated by foreign students. Business schools have been simply be more direct in informing employees about criticized for facilitating an excessive focus on what does and does not go with the job. finance, and insufficient attention to production and management of human resources. However, the issue of definition will not be left unilateraly to employers. With unions covering a It is likely, therefore, that the 1990s will see efforts relatively small fraction of the workforce, courts, toreformtheeducationalsystemwithanemphasison legislatures, and Congress are likely to step in to improving long-term US. international competitive- provide protections for employees and increase their ness. However, budget stringencies will limit the benefit coverage. The issue of multiple complaint publicresourcesthatwillbedevotedtoformaleduca- forums - EEO, workers' compensation, wrongful dis- tion Thus,employerswillfindthemselvesunderpres- charge, etc. - will require attention. If current trends sure to provide job-related training themselves, or persist, unionized employers may find themselves form partnerships and cooperative ventures with better able to deal with defining the employment educationalinstitutions to do so. relationship than nonunion, since they already negotiatewritten contracts and have formal grievance Vill. Socbl Insurance. and arbitration machinery. Although Social Security is often thought of as the In any case, faced with a need for flexibility, primemeansofprovidingsocialinsurance,budgetary employers will have to seek alternative forms of ad- pressures will limit Congress in efforts to increase justment to the uncertainties of the product market, benefitstoretireesanddisabledpersons, ortoextend both macro and micro. Thus, rather than rely on benefits to younger, active workers. Congress has layoffs, for example, employers may turn toward thereforeincreasinglyusedtax incentivesanditscon- flexible pay systems such as profit sharing. Some troloverthetaxcodetofosterandregulatetheprivate moves in this direction were already visible in the provision of fringe benefits, especiallythose relating 1980s.Andemployersmaymakestillmoreuseofcon- tohealthinsurance,saving,andretirement.AsFigure tingent workers, who will bear the brunt of adjust- 15 shows, in 1986, about one sixth of the nonelderly ments, thus shielding core employees. population had no health insurance (22% in Califor- nia). Thus, in the l980s, various efforts were made to Fmally, given existing quality problems in the output induce employers to cover workers and others who of the nation's school system, employers will be would not otherwise have such benefits. pressed to become more involved in worker training. If the employment unit is becoming smaller, however, 'Nondisaimination' rules have been tightened by support of full scale training may not be feasible. Congress to tilt benefits to lower paid employees. Partnership arrangements between employers and Moves were also made toward continuing insurance UCLA National Forecast B-12 Figure 15. Percent of Nonelderly State Populations Who Are Uninsured (By State, 1985) ID co CK AR FL, TX MS NM. LA Dc. KY CA AZ. TN. AL co, SD, MT WV wr GA' cE USA I'4 CR. WA VA' NE' V. IL GC tN, MI UT ND PA MA 0 1 0 20 30 Note: Data refer to proportion of the population under age 65 without health lnsurance. Source: E. Richard Drown et al, Californians Vithout Health Insurance. Calif. Policy Seminar, Technical Assistance Project, September 1987. p. 4. SpecIal Emp ment Focus B-13 educational institutions will be seen as at least a par- tial solution. In 1945, faced with tremendous problems in the employment market surrounding the then-emerging system of collective bargaining, President Truman called a White House conference to discuss the key issues. The new Bush admintaton might consider a similar step to help the nation confront the many ambiguities surrounding the employment relation- ship. A new White House conference on the employ- ment relationship would assist policy makers, employers, unions, and the general public see the in- terconnection between the key issues, and help movre public policy away from isolated, piocemeal solutions. Sources (1) Paul D. Staudohar and Holly E. Brown, eds., e u ation and Plant ClOsure (Lexington, Mass.: Lengton Books, 1987). (2) US. Bureau of Labor Statistics, aispiacrd WcrkcraJ2Z2 bulkfin2289 (Washington: GPO, (3) Michael J. Piore and Charles F. Sabet Tk (New York: Basic Books, 1984). (4) Michael W. Horrigan and Steven E. Haugen, -1he Dedining Middle-Class Thesis : A Sensitivity Analysis, oR- voLHIl(May 18), pp. 3-13. (5) Max L Carey and Kim L Hazelbaker, "Employ- ment Growth in the Temporary Help Industry," Mony Labor Review vol. 109 (April 1986), pp. 37- 44. (6) James N. Dertouzos, Elaine Holland, and Patricia Ebener, The Legal and Economic Conse- quences of W nf e mi (Santa Monica, Calif.: Rand Corporation, 1988). (7) The estinate of the proportion of the drop in the unionizationratewasmadeusingCCurrentPopula- tion Survey data for 1980 and 1987 and was based on 12 industrial classifications : agriculture-forestry- fisheries, mining, construction, durable manufactur- ing, nondurable manufacturing, transportation, public utilties and communicadons, wholesale trade, retail trade, finance-insurance-real estate, services, and government. (8) Fgure 11 data on COLA incidents are based on a three-year average ending in the year shown. Be- cause different industies vary in their propensity to use COLAs, it is necessary to take a three-year average to represent the full union sector. (Union contracts average about 2-1/2 years in duration and expire on a staggered basis). (9) Alexander W. Astin, Kenneth C. Green, Wi- liam S. Korn, and Marilynn Schalit, The American Freshman : National Norms for Fal 1987 (Los An- geles, UCLA Higher Education Research Institute, 1987), pp. 5, & UCLA National Forecast B-14 STATISTICS B-15 TABLE B-44.-Average wveekly bours and hourly earnings in selected private nonagricudltural industries, 1947-88 Ihor production or nonsupervisory workers; monthly data seasonally adjusted, except as noted] Average weekly hours Average hourly earnings Adjusted hourly earnings, total private nonagricultural2 Year or Total Total Index, Percent change month private Manufac- Con- Retail private Manufac- Con- Retail 1977=100 from a year iou- turing struction trade lturing struction trade earlier4 tural'_ turall_ol _ _rs Current dolla%rs Current 1977 dollars dJollars 1947............ 1948............. 1949............. 1950............. 1951............ 1952............. 1953............. 1954............. 1955............. 1956............. 1957............. 1958............. 1959............. 1960............. 1961............. 1962............. 1963............. 1964............. 1965............. 1966............. 1967............. 1968............. 1969............. 1970............. 1971............. 1972............. 1973. 1974............. 1975............. 1976. 1977............. 1978. 1979............. 190............. 1981............. 1982............. 1983............. 19 4............. 1985 ............. 1986............. 1987............. 1987: Jan ..... Feb..... Mar.. iAee.... June .... July..... Aug..... Sept.... Oct ..... Nov ..... Dec..... 1988: Jan ..... Feb. Mar..... Apr ..... Ilay .... June.... July..... Aug.... Sept.... Oct. Nov w 40.3 40.0 39.4 39.8 39.9 39.9 39.6 39.1 39.6 39.3 38.8 38.5 39.0 38.6 38.6 38.7 38.8 38.7 38.8 38.6 38.0 37.8 37.7 37.1 36.9 37.0 36.9 36.5 36.1 36.1 36.0 35.8 35.7 35.3 35.2 34.8 35.0 35.2 34.9 34.8 34.8 34.7 34.8 34.8 34.7 34.8 34.7 34.8 34.8 34.6 34.9 34.8 34.6 34.7 34.8 34.6 34.9 34.7 34.7 34.9 34.6 34.7 34.9 34.7 40.4 40.0 39.1 40.5 40.6 40.7 40.5 39.6 40.7 40.4 39.8 39.2 40.3 39.7 39.8 40.4 40.5 40.7 41.2 41.4 40.6 40.7 40.6 39.8 39.9 40.5 40.7 40.0 39.5 40.1 40.3 40.4 40.2 39.7 39.8 38.9 40.1 40.7 40.5 40.7 41.0 40.9 41.1 41.0 40.7 41.0 41.0 41.0 41.0 40.6 41.2 41.2 41.0 41.1 41.0 40.9 41.2 41.0 41.1 41.1 41.0 41.2 41.2 41.2 38.2 38.1 37.7 37.4 38.1 38.9 37.9 37.2 37.1 37.5 37.0 36.8 37.0 36.7 36.9 37.0 37.3 37.2 37.4 37.6 37.7 37.3 37.9 37.3 37.2 36.5 36.8 36.6 36.4 36.8 36.5 36.8 37.0 37.0 36.9 36.7 37.1 37.8 37.7 37.4 37.8 38.2 38.1 37.8 37.5 37.9 37.7 37.7 37.8 35.9 38.2 37.9 38.0 36.9 37.3 37.8 38.0 37.6 38.3 37.7 37.7 37.8 38.3 38.4 40.3 40.2 40.4 40.4 40.4 39.8 39.1 39.2 39.0 38.6 38.1 38.1 38.2 38.0 37.6 37.4 37.3 37.0 36.6 35.9 35.3 34.7 34.2 33.8 33.7 33.4 33.1 32.7 32.4 32.1 31.6 31.0 30.6 30.2 30.1 29.9 29.8 29.8 29.4 29.2 29.2 29.0 29.3 29.3 29.5 29.3 29.2 29.3 29.4 29.5 29.2 29.2 28.8 29.0 29.1 29.0 29.2 29.0 29.1 29.3 29.0 28.9 29.2 29.0 $1.131 1.225 1.275 1.335 1.45 1.52 1.61 1.65 1.71 1.80 1.89 1.95 2.02 2.09 2.14 2.22 2.28 2.36 2.46 2.56 2.68 2.85 3.04 3.23 3.45 3.70 3.94 4.24 4.53 4.86 5.25 5.69 6.16 6.66 7.25 7.68 8.02 8.32 8.57 8.76 8.98 8.86 8.88 8.89 8.91 &95 8.95 8.96 9.01 9.02 9.07 9.10 9.11 9.14 9.13 9.16 9.23 9.27 9.27 9.32 9.32 9.37 9.43 9.42 $1.216 1.327 1.376 1.439 1.56 1.64 1.74 1.78 1.85 1.95 2.04 2.10 2.19 2.26 2.32 2.39 2.45 2.53 2.61 2.71 2.82 3.01 3.19 3.35 3.57 3.82 4.09 4.42 4.83 5.22 5.68 6.17 6.70 7.27 7.99 8.49 8.83 9.19 9.54 9.73 9.91 9.80 9.83 9.84 9.86 9.88 9.89 9.88 9.94 10.00 9.99 10.00 10.01 10.02 10.03 10.05 10.11 10.15 10.18 10.17 10.20 10.26 10.28 10.29 $1.540 1.712 1.792 1.863 2.02 2.13 2.28 2.38 2.45 2.57 2.71 2.82 2.93 3.07 3.20 3.31 3.41 3.55 3.70 3.89 4.11 4.41 4.79 5.24 5.69 6.06 6.41 6.81 7.31 7.71 8.10 8.66 9.27 9.94 10.82 11.63 11.94 12.13 12.32 12.48 12.69 12.55 12.55 12.66 12.67 12.70 12.74 12.71 12.72 12.70 12.72 12.81 12.74 12.91 12.82 12.90 12.93 12.91 12.93 13.03 12.99 13.04 13.04 13.04 $0.838 .901 .951 .983 1.96 1.09 1.16 1.20 1.25 1.30 1.37 1.42 1.47 1.52 1.56 1.63 1.68 1.75 1.82 1.91 2.01 2.16 2.30 2.44 2.60 2.75 2.91 3.14 3.36 3.57 3.85 4.20 4.53 4.88 5.25 5.48 5.74 5.85 5.94 6.03 6.11 6.05 6.05 6.05 6.08 6.09 6.10 6.12 6.13 6.18 6.16 6.17 6.19 6.20 6.20 6.22 6.25 6.28 6.29 6.33 6.32 6.34 6.38 6.43 21.6 23.4 24.5 25.4 27.3 28.7 30.3 31.3 32.4 34.0 35.7 37.2 38.5 39.8 41.0 42.4 43.6 44.8 46.4 48.4 50.8 53.9 57.5 61.3 65.7 69.8 74.1 80.0 86.7 92.9 100.0 108.2 116.8 127.3 138.9 148.5 155.4 160.3 165.2 169A 173.5 171.3 171.9 172.1 172.5 172.9 172.9 173.2 174.1 174.6 174.9 175.6 175.7 176.6 176.7 177.0 178.0 178.7 178.6 179.3 179.5 180.3 181.5 181.5 58.5 58.9 62.3 64.0 63.6 65.5 68.7 70.5 73.3 75.9 76.9 78.0 80.0 81.4 83.0 85.0 86.3 87.5 89.0 90.3 92.2 94.0 95.0 95.7 98.3 101.2 101.1 98.3 97.6 99.0 100.0 100.5 97.4 93.5 92.6 93.4 94.8 94.6 94.1 95.0 94.0 94.7 94.7 34.4 94.1 94.0 93.7 93.7 93.8 93.7 93.5 93.8 93.7 93.8 93.7 93.5 93.6 93.6 93.2 93.2 92.9 93.0 93.1 93.0 8.3 4.7 3.7 7.5 5.1 5.6 3.3 3.5 4.9 5.0 4.2 3.5 3.4 3.0 3.4 2.8 2.8 3.6 4.3 5.0 6.1 6.7 6.6 7.2 6.2 6.2 8.0 8.4 7.2 7.6 8.2 7.9 9.0 9.1 6.9 4.6 3.2 3.1 2.5 2.4 2.3 2.2 2.2 2.4 2.4 2.2 2.3 2.7 2.8 2.7 2.6 2.7 3.1 2.8 2.9 3.2 3.4 3.3 3.5 3.1 3.3 3.8 3.3 ............. 0.7 5.8 2.7 -.6 3.0 4.9 2.6 4.0 3.5 1.3 1.4 2.6 1.8 2.0 2.4 1.5 1.4 1.7 1.5 2.1 2.0 1.1 .7 2.7 3.0 -.1 -2.8 -.7 1.4 1.0 .5 -3.1 -4.0 -1.0 .9 1.5 -.3 -.5 1.0 -1.1 1.2 .4 -.6 -1.3 -1.3 -1.4 -1.5 -1.6 -1.5 -1.8 -1.9 -1.7 -1.0 -1.0 -.9 -.6 -.5 -.6 -.5 -.9 -.8 -.4 _.9 I Also includes other private industry groups shown in Table 8-43. 2 Adjusted lor overtime (in manufacturing only) and for interindustry employment shifts. 3Cunent-dollar index divided by the consumer price index for urban wage earners and clerical workers on a 1977=100 base. 4 Monthly percent changes are computed from indexes to two decimal places and are based on data not seasonally adjusted. Note.-See Note, Table B-43. Source: Department of Labor, Bureau of Labkr Statistics. B-16 . TABLE B-45.-Ai'erage uveekly earninngi itn selerted prinate ntoteagricultniral induistries, 1947-88 iFor production or nonsupervisory workers; monthly data seasonally adjusted, except as noted] Average weekly earnings Percent change from a year earlier, total Tntal private Manetac- Censtrec. Retail prieate Year or month nonagriculteralI turing tion trade nonagriculturalt Current 1977 (current (current (current Current 1977 dellars dellars 2 1 dellars) I dellars) Idellarsl dellars dellars 1947 ......................... $45.58 $123.52 $49.13 $5g.83 $33.77 ..................... 1948 ......................... 49.00 123.43 53.00 65.23 36.22 7.5 -0.1 1949 ......................... 50.24 127.04 53.00 $7.56 30.42 2.5 3.6 1950 ....................I..... 53.13 133.03 50.20 69.60 39.71 5.0 4.7 1951 ......................... . 57.06 134.07 63.34 76.96 42.02 0.9 *g 1952 ......................... 60.65 130.47 66.75 02.86 43.30 408 2.7 1953 ......................... . 63.76 144.50 70.47 06.41 45.36 5.1 4.4 1954 ......................... . 64.52 145.32 70.49 00.54 47.04 1.2 .5 1955 ......................... . 67.72 153.20 75.30 90.90 40.75 5.0 5A4 1956 ......................... . 70.74 157.90 70.70 96.30 50.00 4.5 3.1 0957 ....:.................... . 73.33 158094 01.19 100.27 52.20 3.7 .1 1950 ......................... . 75.00 157.40 02.32 103.70 54.10 2.4 -.4 1959 ......................... . 70.70 163.70 00.26 108.41 56.15 4.9 4.1 1960 .0........................ 0.67 164.97 09.72 112.67 57.76 2.4 .7 1961 .0........................ 2.60 167.21 92.34 110.00 50.66 2.4 1.4 1962 .0........................ 5.91 172.16 96.56 122.47 60.96 4.0 3.0 1963.00........................ 8.46 175.17 99.23 127.19 62.66 3.0 1.7 1964.......................... 91.33 170.30 102.97 132.06 64.75 3.2 1.0 1965.......................... 95.45 103.21 107.53 130.30 66.61 4.5 2.7 1966.......................... 98.02 194.37 112.19 146.26 60.57 3.5 .6 1967 ..........................101.04 184.03 114A49 154.95 70.95 3.1 .2 1960.......................... 107.73 187.60 122.51 164.49 74.95 5.0 1.5 1969.......................... 114.61 109.44 129.51 101.94 70.66 GA4 .9 1970.......................... 119.83 196.94 133.33 195.45 02.47 4.6 -1.3 1971.......................... 127.31 190.50 142.44 211.67 07.62 6.2 1.9 1972.......................... 136.90 198.41 194.71 221.19 91.05 7.5 4.1 1973 ......................... 145.39 190.35 166.46 235.89 96.32 6.2 -.0 1974.......................... 154.76 100.12 176.00 249.25 102.60 6.4 -4.1 1975.......................... 161.53 104.16 190.79 266.00 100.06 5.7 -3.1 1976.......................... 175.45 106.05 209.32 203.73 114.66 7.3 1.5 1977 .......................... 109.00 109.00 228.90 295.65 121.66 7.7 1.2 1970.......................... 203.70 109.31 249.27 310.69 130.20 7.0 .2 1979.......................... 219.91 103.41 269.34 342.99 130.62 0.0 -3.1 1900.......................... 235.10 172.74 200.62 367.70 147.30 6.9 -5.0 1981.......................... 255.20 170.13 310.00 399.26 150.03 0.5 -1.5 1902.......................... 267.26 166.09 330.26 426.02 163.05 4.7 -1.2 1503.......................... 200.70 171.26 354.00 442.97 171.05 5.0 1.9 1904.......................... 292.06 172.70 374.03 450.51 174.33 4.3 .9 1985.......................... 299.09 170.42 306.37 464.46 174.64 2.1 -1.4 1906.......................... 304.05 171.07 396.01 466.75 176.00 1.9 .4 1907.......................... 312.50 169.20 406.31 479.60 170.41 2.5 - 1.0 1907: Jan ...................... 307.44 169.95 400.02 479.41 175.45 1.2 .1 Feb...................... 309.02 170.26 404.01 470.16 177.27 2.4 .5 Mar...................... 309.37 169.70 403.44 478.55 177.27 1.7 - 1.1 Apr ...................... 309.10 166.67 401.30 475.13 179.36 1.9 -1.0 May...................... 311.46 169.36 405.00 401.33 178.44 2.7 - 1.0 Jane ..................... 310.57 166.33 405.49 400.30 170.12 2.5 -1.1 July...................... 311.01 160.64 405.00 479.17 179.32 2.6 -1.3 Avg...................... 313.55 166.05 407.54 400.02 100.22 3.1 -1.2 Sept ..................... 312.09 167.52 406.00 455.93 102.31 2.4 -1.0 Oct ...................... 316.54 169.27 411.59 465.00 179.07 3.5 - 1.0 Noee...................... 316.60 169.00 412.00 405.50 100.16 3.2 -1.3 Dec...................... 315.21 166.02 410.41 404.12 170.27 3.0 -1.4 1900: Jan ...................... 317.16 168.43 411.02 476.30 179.00 3.1 -.9 Feb...................... 317.72 160.46 411.23 478.19 100.42 2.0 1.0 Mar...................... 316.94 167.43 411.05 407.62 100.30 2.4 -1.3 Apr ...................... 322.13 169.36 416.53 491.34 102.50 4.2 .4 May...................... 321.67 166.41 416.15 485.42 102.12 3.1 -.7 June ..................... 321.67 167.09 410.40 495S22 103.94 3.3 -.9 July...................... 325.27 169.96 417.09 491.23 I85.47 4.2 .2 Aug...................... 322.47 166.02 418.20 409.72 103.20 208 -1.2 Sept ..................... 325.14 167.66 422.71 492.91 103.23 4.2 -.0 Oct ...................... 329.11 166.06 423.54 499.43 106.30 4.1 -.1 Noee P................ 326.07 167.45 423.95 5OO.74 106.47 3.2 1.0 B-17 I Also includes other private industry groups shown in Table B43. 2 Earnings in current dollars divided by the consumer price index for urban wage earners and clerical workers on a 1977=100 base. 3 Based en data not seasonally adjusted. Note.-See Note, Table B43. Source: Department of Labor, Bureau of Labor Statistics. s l TABILE B-1 10.-Civilian unemployment rate, and bourly compenation, major industrial countries, 1960-B (Quarterly data seasonally adjusted] United WestUie Year or quarter States Caada Japan France Germany Iay Kingdom Civilian unemnployment rate (percent)' 1961). . . ................................... 5.5 6.5 1.7 1.5 Li1 3.1 2.2 1961 .................................. . . . 6.1 6.1 1.5 1.2 .6 3.2 2.0 1962 . . . . .?................................ 55 s.s i.3 L.4 .6 2.8 2.1 1963 . . . . .?1............................... . ?.2 1.3 i.6 .5 2.4 133 1964 . . . . .?................................ 52 4.4 1.2 1.2 A4 2.1 2.5 1965 .................................. . . . 4.5 1.6 1.2 1L6 .3 1.5 2.1 1966 . . . . .1................................ 38 1.4 1.4 1.6 .3 3.1 2.3 1961 . . . ................................... 3.8 3.8 1.3 2.1 1.3 3.4 3.3 1968 . . . . .1................................ 36 4.5 1.2 2.1 1.1 3.5 1.2 1969 . . . ................................... 3.5 4A4 1.1 2.3 .6 3.5 311 1910 .................................. . . . 4.9 5?7 1.2 2.5 .5 3.2 311 19711. . . . .?................................ 59 6.2 1.3 218 ?6 13 1.9 1972 . . . ................................... 5.6 6.2 1.4 2.9 .7 1.8 4.2 1913 .................................. . . . 4.9 ?.5 1.3 2.8 .7 37 1.2 1974................................... . . . 5.6 ?.3 1.4 2.9 1.6 1.1 311 1915 . . . . .t................................ S. 6.9 1.9 4.1 1.4 1.4 4.6 1976 .................................. . . . 7.1 7.1 2.0 4.5 1.4 1.9 ?9 19771. . ................................... . 1 .1 ti LO ?.1 15 4.1 6.4 1918 . . . ................................... 6.1 8.3 2.3 ?.3 1.3 4.1 6.3 1919.... ................................... 518 7A 2.1 6.0 1.0 4.4 ?.4 1980 . . . . .1................................ .1 7.5 2.0 6.4 2t9 4A4 1.0 1981 . . . . .1...................... ........ .6 7.5 2.2 1.6 4.1 4.9 10.5 1982 . ....................... .............. 9.7 11.0 t4 8.3 ?.8 ?.4 11.3 1983 . . . ................................ .. 9.6 11.9 tl. tS 1.1 ?.9 11.9 1984 . . . ................................... 7.5 11.3 t8 10.0 1.4 ?.9 11.7 1985 . ...... ............................. . 72 10.5 2.6 1OA4 7.5 6.0 11.2 1986........ . .... 1 .................. ...- .0 9.6 2. 10.6 1.0 7.5 11.2 1987 . ... -................................... 6.2 t.9 2.9 1018 6.9 1.9 10.3 19871:.................................. 6.6 9.6 3.0 10.9 6.8 1.6 11.0 I.................................. 6.3 9.1 1.1 10.9 6.9 118 10.6 IIl................................. 6.0 t.8 2.8 1018 1.0 tO0 io.o IV.?................................ 59 8.2 2.7 10.6 1.0 1.1 9.5 1988:1.?................................. 57 1.9 2. 10.6 6.9 1.9 9.0 I.?................................ 55 7.7 2.5 10.6 1.0 7.9 1.6 IIl.?................................ 5 7.9 2. 10.1 6.9 118 ti ____Manuacturing hourly comnpensatIon in U1.S. dollars (1971-100)2 1960.................................... 36.5 30.1 6.6 15.1 10.5 11.9 24.5 1961.................................... 37.6 29.6 7.7 16.6 12.2 13.2 26.1 1962.................................... 39.0 28.9 818 18A4 11.9 156 27.5 1963.................................... 40.2 29.8 918 20.0 1418 itS 2t.7 1964.................................... 41.9 31.0 11.0 21.8 16.1 20.6 30.5 1965.................................... 42.7 32.8 12.4 23.6 17.6 21.9 33.4 1966.................................... 44.6 35.5 11.6 25?0 19.1 22.9 36.1 1967.................................... 46.9 31.6 15.3 26.8 20.2 2?.4 36.1 1968.................................... 50.2 40.5 17.8 30.2 21.1 27.1 34.2 1969.................................... 53.1 43.8 21.3 30.7 24.1 30.8 31.3 1970 ........... ...................... . 51.4 4818 25.3 32.3 30.5 3618 41.2 1971 .................................... 60.9 54.3 30.2 36.5 35?9 41.1 50.9 1912 .................................... 642 59.4 39.8 44.1 41.4 52.3 60.2 1913.................................... 6818 63.1 54.5 51.5 59.1 66.4 67.3 1914................................... . 1762 1?.0 66A4 63.4 69.1 14.0 11.0 1975................................... . 8?1 82.5 1610 81.4 79.9 9?.0 91.3 1916 .................................... 92.1 91.3 81.9 90.4 84.2 89.5 91.4 1911..................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1918 .................................... 108.2 100.3 137.0 121.4 12418 119.1 12t.3 1919 .................................... 11t6 101.6 139.2 148.3 141.0 143.1 169.0 1980 .................................... 132.4 119.3 143.2 112.9 160.1 16?.3 224.1 1981................................... . 1452 131.9 151.8 155.4 131.5 15318 224.4 1982..................................... 151.5 143.8 146.9 152.4 134.8 15?.4 212.0 1983 ..................................... 162.4 15218 158.6 145?2 134.8 164.4 196.9 1984 .................................... 168.0 152.3 163.5 13118 126.9 159.1 18?.6 1985................................... . 176A4 151.3 11031 145?3 120.9 160.9 192.4 1986 .................................... 183.0 15?.6 252.1 196.1 183.1 212.1 23117 1981 .................................... 186.9 111.5 29813 231.6 230.6 259.0 219.6 'Civilian uneinploymenet rains, approsimnating U.S. conceps Quarerly data for France, Weal Germany, and United Kingdom should be viewed as Ins precis indicators o1 unempoymet uinder u. . oncepts than the anneal data. Many Italians repored as unemployed did not actively seek work in the past 30 days, and they have been encoded for cempaability wi'th U.S. ceoncepts. Incinsion of sods persons WOUld about double the ononployment rate for Italy througb 1985, and incease itoi 11-12 percent fur 1986-00. There are breaks in the sofn for Italy and Wesi Germany. Based en the former series, the rate for Wnit Germany for 1983 was 1.4 percent and the rate for Italy for 1986 was 6.3 percent. '~~~tine in manufacturing. U.S, dollar basin. Data relate to all empinyed persons (wage and salary earners and the soNf- emplyedin he nitd Sainand Canada, and to all omployees (wage and salary earners) in the other countries. For France and tintmlKlodom cenpesatenadjusted to inudo changns in employment taxse that are not compensation to employees, hut are labor Source. Deprtment of Labor, Bureau of Labor Statistics. B-18 T.BLE B-58.-Consumer price indexes, major expenditure classes, 1946-88 [1982484=100] Food and Housing beverages House- Other Year or All hod A~rlTrans- Medical Enter- god Enr month itiems Fuel and furnish- and outto ae anetads gner Total' Food Total Sholter other ins p orktiep ar tan ertvanc gys utilities 2 andSOV5 1946 ..... 19.5 .. 19.8 .. ... .............. . . . 34.4 1947 . . 22.3 . ... 24.1 ................... ... .............. . . . 39.9 1948 .. 24.1 1.. 26.1 . . . ................ ............... ... 42.5 1949 . 23.8 . 25.0 ... . ....... 40.8 1950 .. 24.1 .. ... 25.4 ...................... .............. . . 40.3 951 9 . . 26.0 .. 28.2 .. .. . ..................... .............. 43.9 1952 . 26.5 . 28.71. .. .I........ 43.5 1953 . . 26.7 .. 28.3 .. . ... 22.0 22.5 . . 43.1 1954 . . 26.9 1...... 28.2 22.5 22.6 ...... 43.1 1955 . . 26.8. . . 27.8 22.7 23.0 . ..... 42.9 1956 . . 27.2 .... . 28.0 ...... 23.1 23.6 . ..... 43.7 1957 . . 28.1 _...... 28.9 24.0 24.32. 44.5 1958 . .... 28.9 .. 30.2 - 24.5 24.8 ...... 44.6 1959 . 29.1 ...... .. 29.7 24.7 25.4 . . 45.0 1960 . 29. 6 . 30. 0 . 25.2 26.0 . .45.7 1961 . .... 29.9 .. 30.4 - 25.4 26.3 . . 46.1 1962 ..... 30.2 30.6 25.8 26.3 . . 46.3 19633.. 3. . .... .. . 30.6 31.1 - 26.1 26.6 . . 46.9 1964 .. 31.0 31.5 _ 26.5 26.6 47.3 1965 ..... 31.5 .. 32.2 27.0 26.6 . 47.8 1966.. 32.4 ...... 33.8 27.8 26.7 .. 49.0 1967 .. 33.4 35.0 34.1 30.8 26.8 27.1 42.0 51.0 1968 .. 34.8 36.2 353 32.0 30.1 27.4 43.6 53.7 1969. _ 36.7 38.1 37.1 34.0 32.6 28.0 45.2 56.8 1970.. 38.8 40.1 39.2 36.4 35.5 29.1 46.8 59.2 1971 . . 40.5 41.4 40.4 38.0 37.0 31.1 46.6 61.1 1972 .. 41.8 43.1 42.1 39.4 38.7 32.5 49.7 62.3 1973 .. 4.4 4&8 48.2 41.2 40.5 34.3 51.1 64.6 1974. . 49.3 55.5 55.1 45.8 4.4 40.7 56.8 69.4 19755. 53.8 60.2 59.8 50.7 48.8 45.4 63.4 72.5 1976 .. 56.9 62.1 61.6 53. 51.5 49A 67.3 75.2 1977 . . 60.6 65.8 65.5 57.4 54.9 54.7 70.4 78.6 1978 .. 65.2 72.2 72.0 62.4 60.5 58.5 74.7 81A 1979 . . 72.6 79.9 79. 70.1 68.9 64.8 79.9 84.9 1980 .. 82.4 86.7 86.8 81.1 81.0 75A 86.3 90.9 1981 . . 90.9 93.5 93.6 90.4 90.5 86A 93.0 95.3 1982 .. 96.5 97.3 97.4 96.9 96.9 94.9 98.0 97.8 1983.. 99.6 99.5 99.4 99.5 99.1 100.2 100.2 100.2 1984 .. 103.9 103.2 103.2 103.6 104.0 104.8 101.9 102.1 1985 .. 107.6 105.6 105.6 107.7 109.8 106.5 103.8 105.0 1986 .. 109.6 109.1 109.0 110.9 115.8 104.1 105.2 105.9 1987 .. 113.6 113.5 113.5 114.2 121.3 103.0 107.1 110.6 1987: Jan .. 111.2 11. 112.1 112.0 118.5 101.1 106.3 105.6 Feb . 1116 112.5 112.5 112.4 119.0 1014 106.5 106.2 Mar 112.1 112.5 112.5 112.8 119.6 1015. 106.8 109.7 Ior 112.7 112.8 112.8 113.2 120.2 101.3 107.2 1115. ay ....... 113 .3 113.3 113.6 120.5 102.2 107.1 111.1 June 113.5 113.8 113.8 114.3 10.8 104.9 107.1 109.3 July 113.8 113.7 113.7 114.7 121.3 105.0 107.2 107.3 Aug. 114.4 113.8 113.8 115.4 122.2 105.9 107.3 109.4 Sept 115.0 114.2 114.1 115.6 122.5 105.5 107.5 113.3 Oct . 115.3 1143 1143 115.5 3.2 103.2 107A 115.4 Now 115.4 114.3 114.2 115.5 123.4 102.4 107A 115.4 Dec . 115.4 114.8 114.7 115.6 123.7 102.0 107.3 112.7 1988: Jan .. 115.7 115.7 115.7 116.2 124.6 102A 107.5 1OA Feb . 116.0 115.8 115.7 116.6 125.0 102.8 107.7 110.2 Mar .... 116.5 116.0 115.9 117.0 125.6 102.7 108.3 114.3 Apr 117.1 116.7 116.i 1173 125.8 102.8 109.1 117.0 May 117.5 117.1 117.0 117.7 1262 103.5 109.3 116.3 June 118.0 117.6 117.6 118.6 126.6 105.9 109.6 114.6 July 118.5 118. 118.8 119.1 127A 106.0 109.8 112.7 Aug. 119.0 119A 119A 119.5 1.282 106.1 109.7 112.6 Sept 119.8 120.1 120.2 119.9 U14 106.4 110.1 117.8 Oct 120.2 120.3 12033 119.9 188 105.4 110.3 120.7 Nov . 120.3 120.2 120.2 1193 19.1 104.3 110.6 119.9 18.5 132.5 . ............ 1 .5 1 5 ...... ... .............. ............. 20.6 14.4 ................... .... ............ 22.1 14.8 ........................ ............ 22.7 15.l .... . .... ............ 24.1 15.9 .............. ............ 25.7 16.7 .............. ............ 26.5 17.3 .............. ............ 26.1 17.8. .............. ............ 25.8 18.2. .............. ............ 26.2 18.9. .............. ............ 27.7 19.7 . ........... 21.5 28.6 20.6 . . ............ 21.5 29.8 21.5 . . . 21.9 29.8 22.3 . . ............ 22.4 30.1 22.9 . . ............ 22.5 30.8 23.5 . . ............ 22.6 30.9 24.1 ................ 22.6 31A 24i .6 . . ........... 22.5 31.9 25.2 . ........... 22.9 32.3 26.3 ................ 23.3 33.3 28.2 40.7 35.1 23.8 34.3 29.9 43.0 36.9 24.2 35.7 31.9 45.2 38.7 24.8 37.5 34.0 47.5 40.9 25.5 39.5 36.1 50.0 42.9 26.5 39.9 37.3 51.5 44.7 27.2 41.2 38.8 52.9 46.4 29A 45.8 42.4 56.9 49.8 38.1 50.1 47.5 62.0 53.9 42.1 55.1 52.0 65.1 57.0 45.1 59.0 57.0 68.3 60.4 49.4 617 61.8 71.9 64.3 52.5 70.5 67.5 76.7 68.9 65.7 83.1 74.9 83.6 75.2 86.0 93.2 82.9 90.1 82.6 97.7 97.0 92.5 96.0 91.1 99.2 99.3 100.6 100.1 101.1 99.9 103.7 106.8 103.8 107.9 100.9 106A 113.5 107.9 114.5 101.6 102.3 122.0 111.6 121.4 88.2 105.4 130.1 115.3 128.5 88.6 102.6 126.6 113.3 125.5 83.9 103.1 127.4 113.5 126.1 85.6 103.3 12&1 113.9 126.3 85.8 104.2 128.7 114.5 126.6 86.4 104.7 129.2 114.8 126.9 87A 105.4 129.9 114.9 127.2 90.7 106.0 130.7 115.4 128.0 91.1 106.5 131.2 115.6 128.5 92.7 106.6 131.7 116.1 131.1 92.3 107.1 132.3 116.9 131.6 89.8 107.8 132.8 117.3 131.8 89.0 107.6 133.1 117.4 132.1 88.3 107.1 134.4 118.1 133.4 87A 106.8 135.5 118.3 134.2 87.0 106.5 136.3 119.0 134.6 86.5 107.2 136.9 119.6 134.8 87.3 108.1 137.5 119.7 135.1 88.7 108.5 138.2 120.1 135.5 91.0 108.9 139.3 120.5 136.5 91.4 109.6 139.9 120.7 137.5 92.3 109.7 140.4 121.3 140.0 91.9 110.0 141.2 121.8 140.6 89.9 110.7 141.8 122.2 141.0 88.9 Indudes alcoholic beves, not shwo separatl 2 See table B-59 for conuentf a See tabls 5-60 for demition and -59 for croiponiuts. Note.-4ata begimninA 1978 ar for al ib. consumers; earier data are for urban wage earners and dcrical workurs. Data beginning 1983 i rr ate a rental qlaco asure for omens' costs and therdore are not strict ma with earier figures. Sorce: Department of Labor. breau of Labor Stacs. B-19 TABLE B-59.-Consumer price indexes, selected expenditure classes, 1946-88 (1982-4 = 100, except as noted] Food and beverages Shelter Fuel and other utilities Food Renters' costs Household tuels Home fuel oil Other Year or amoth Home. ma0inte and Gas utidihes Total t Awt Total Rent, owners' nance Total othe (Pp) and Ttlhome from Total resi- costs's and Total held ad phhc hrome dential repairs lfuel elc- services m tricity modities 1946................... 1947................... 1948................... 1949................... 1950................... 1951.................. 1952................... 1953................. 1954................... 1955................... 1956............... 1957 .. 1958................... 1959 . .... .. ....... 1960 ................... 1961................... 1962 .. 1963............. 1964 .. 1965............... 1966 .. 1967.............. 1968 . . 1969................. 1970................ 1971................. 1972................... 1973................. 1974................. 1975............... 1976 .... 1977................... 1978 .. 1979................... 1980 .................... 1981................... 1982................... 1983................... 1984................... 1985................... 1986................. 1987............... 1987: Jan............ Feb........... mar........... Ar ............ ............ June.......... July........... Aug........... Sept.......... Oct........... No............ Dec........... 1988: Jan............ Feb........... Mar........... Ia,or ............ "............ June.......... July........... Aug........... Sept.......... Oct............ Nov........... ............ ........... ............ ............ ........... ............ ........... ........... ........... ........... ............ ........... ........... ,............ ,........... ,........... ,............ ,........... ,............ ,........... 35.0 36.2 38.1 40.1 41A 43.1 4.8 55.5 60.2 62.1 65.8 72.2 79.9 86.7 93.5 97.3 99.5 103.2 105.6 109.1 113.5 112.1 112.5 112.5 112.8 113.3 113.8 113.7 113.8 114.2 114.3 114.3 114.8 115.7 115.8 116.0 116.7 117.1 117.6 118.8 119.4 120.1 120.3 120.2 19.8 24.1 26.1 25.0 25.4 28.2 28.7 28.3 28.2 27.8 28.0 28.9 30.2 29.7 30.0 30.4 30.6 31.1 31.5 32.2 33.8 34.1 35.3 37.1 39.2 40.4 42.1 48.2 55.1 59.8 61.6 65.5 72.0 79.9 86.8 93.6 97A4 99.4 103.2 105.6 109.0 113.5 112.1 112.5 112.5 112.8 113.3 113.8 113.7 113.8 114.1 114.3 114.2 114.7 115.7 115.7 115.9 116.6 117.0 117.6 118.8 119.4 120.2 120.3 120.2 25.8 28.0 26.9 27.3 30.3 30.8 30.3 30.1 29.5 29.6 30.6 32.0 31.2 31.5 31.8 32.0 32.4 32.7 33.5 35.2 35.1 36.3 38.0 39.9 40.9 42.7 49.7 57.1 61.8 63.1 66.8 73.8 81.8 88.4 94.8 98.1 99.1 102.8 104.3 107.3 111.9 110.7 111.2 110.9 111.3 112.0 112.6 112.1 112.1 112.4 112A 112.1 112.8 114.1 1119 113.9 114.6 115.1 115.8 117.3 118.1 119.0 119.0 118.7 ............ ............ ............ ............ ............ ............ 21.5 21.9 22.1 22.6 23.4 24.1 24.8 25.4 26.0 26.7 27.3 27.8 2&4 29.7 31.3 32.9 34.9 37.5 39.4 41.0 44.2 49.8 54.5 58.2 62.6 68.3 75.9 83.4 90.9 95.8 100.0 104.2 108.3 112.5 117.0 115.2 115.5 115.9 116.1 116.4 116.8 117.2 117.5 118.0 118.3 118.6 118.9 119.3 119.7 120.2 120.7 121.0 121.5 122.1 122.5 123.0 123.4 123.7 ............ ............ ............ ............ ............ 22.0 22.5 22.7 23.1 24.0 24.5 24.7 25.2 25.4 25.8 26.1 26.5 27.0 27.8 28.8 30.1 32.6 35.5 37.0 38.7 40.5 44.4 48.8 51.5 54.9 60.5 68.9 81.0 90.5 96.9 99.1 104.0 109.8 115.8 121.3 118.5 119.0 119.6 120.2 120.5 120.8 121.3 122.2 122.5 123.2 123.4 123.7 124.6 125.0 125.6 125.8 126.2 126.6 127.4 128.2 128.4 128.8 129.1 ' Includes alcoholic beverages, not shown separately. 2 Decensber 1982=100. See next page for continuation of table. ,............ ,............ ,............ ,............ ,............ ,............ ,............ ,............ ,............ ,............ ,............ ............ ,............ ,............ ,............ ,............ ,............ ,............ ............. ............. ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ 103.0 108.6 115.4 121.9 128.1 125.3 129.8 126.A 127.1 127.3 127.9 129.3 130.1 129.8 129.4 129.2 129.1 130.8 131.3 132.9 132.9 133.1 133.7 134.7 135.6 134.7 134.8 134.2 25.0 25.8 27.5 28.7 29.7 30.9 32.2 33.9 35.1 35.6 36.3 37.0 37.6 38.2 38.7 39.2 39.7 40.1 40.5 40.9 41.5 42.2 43.3 44.7 46.5 48.7 50A 52.5 55.2 58.0 61.1 64.8 69.3 74.3 80.9 87.9 94.6 100.1 105.3 111.8 118.3 123.1 121.3 121.7 121.8 122.0 122.3 122.3 123.0 123.8 124.4 124.8 124.8 125.6 126.0 126.3 126.4 126.6 126.9 127.3 127.8 128.4 129.1 129.4 129.8 ::::::::::::: ............. ............. ............. ............. ............. ,............. ,............. ,............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............ ............. ............ ............ ............ ............. ............. ............. ............I ............. ............ 10. 107.3 113.1 119.4 124.8 122.0 122.5 123.0 123.6 124.0 124.2 124.4 125.4 -126.0 127.1 127.4 128.0 128.5 129.0 129.2 129.4 129.9 130.4 131.0 131.8 132.6 133.1 133.8 20.5 26.9 21.4 22.3 23.2 23.6 24.0 24.4 24.8 25.0 25.3 25.8 26.3 27.5 28.9 30.6 33.2 35.8 38.6 40.6 43.6 49.5 54.1 57.6 62.0 67.2 74.0 82.4 90.7 96.4 99.9 103.7 106.5 107.9 111.8 110.3 110.2 110.7 11083 11082 111.1 113.2 112.9 112.7 112.8 113.5 113.3 113.7 114.3 113.3 115.3 114.3 114.7 114.5 115.0 115.3 115.0 115.4 22.5 22.6 23.0 23.6 24.3 24.8 25.4 26.0 26.3 26.3 26.6 26.6 26.6 26.7 27.1 27.4 28.0 29.1 31.1 32.5 34.3 40.7 45.4 49.4 54.7 58.5 64.8 75.4 86.4 94.9 100.2 104.8 106.5 104.1 103.0 101.1 101.4 101.5 101.3 102.2 104.9 105.0 105.9 105.5 103.2 102.4 102.0 102.4 102.8 102.7 102.8 103.5 105.9 106.0 106.1 106.4 105.4 104.3 ........... ........... ........... ........... ........... ........... ........... ............ ............ ........... ........... ........... 21.4 21.7 22.1 23.1 24.7 25.7 27.5 34.4 39.4 43.3 49.0 53.0 61.3 74.8 87.2 95.6 100.5 104.0 104.5 99.2 97.3 95.0 95.3 95.2 94.7 96.1 100.8 100.4 101.4 101.0 96.9 95.5 95.1 95.6 96.0 95.8 95.7 96.5 100.8 100.8 100.9 101.0 98.6 96.8 7.9 9.0 10.6 10.9 11.3 11.8 12.1 12.6 12.6 12.7 13.3 14.0 13.7 13.9 13.8 14.1 14.2 14A 14.4 14.6 15.0 15.5 16.0 16.3 17.0 18.2 18.3 21.1 33.2 36.4 38.8 43.9 46.2 62.4 86.1 104.6 103.4 97.2 99A 95.9 77.6 77.9 75.5 77.9 77.5 77.5 77.1 77.2 77.1 77.8 77.6 78.5 80.3 80.5 80.8 80.9 80.5 80.2 80.0 79.1 76.9 76.3 75.9 74.6 75.0 18.3. 18.2. 18.7 .............. 19.2 .............. ............... .............. ............... .............. ............... .............. .............. ............... .............. .............. ............... .............. ............ .... ..... .... 46.6 47.1 48.4 50.0 53.4 56.2 57.8 60.7 63.9 67.7 70.8 73.7 74.3 77.0 84.3 93.3 99.5 107.2 112.1 117.9 120.1 118.7 119.1 119.3 119.7 119.8 119.4 120.5 121.1 120.8 121.2 121.3 120.9 121.3 121.8 122.7 122.3 122.6 122.3 122.4 122.6 123.3 124.5 124.4 19.2 193 19.5 19.9 20.2 20.7 20.9 21.1 21.9 22.4 23.3 23.5 23.5 23.5 23.5 23.5 23.6 23.7 23.9 24.3 25.4 27.1 28.5 29.9 34.5 40.1 ".7 50.5 55.0 61.0 71.4 81.9 93.2 101.5 105.4 107.1 105.7 103.8 101.5 101.5 101.5 100.8 102.5 108.1 107.6 108.7 108.2 103.3 101.4 100.9 101.5 101.9 101.7 101.6 102.6 107.8 108.1 108.3 108.5 105.8 103.7 B-20 _ . .~~~~~~~~~~~~~~ I I TABLE B-59.-Comrumer price indexes, sekcted expenditure classes, 1946-88-Continued (1982-84=100, except as noted] Transportation Medical care Private transportation Total mobile transpor- Total cor-e care Toa 3 Ne jsd oo mainte- Ote ain car-e rie otl cars cars tuet 4 nance l~e oin medities OrIe _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ _ r e p a ir _ _ _ _ _ _ _ _ _ _ _ _ 1946.................................. 1947.................................. 1948.................................. 1949.................................. 1950.................................. 1951.................................. 1952.................................. 1953.................................. 1954.................................. 1955.................................. 1956.................................. 1957.................................. 1958.................................. 1959.................................. 1960.................................. 1961.................................. 1962................................. 1963.................................. 1964.................................. 1965.................................. 1966................................. 1967................................ 1968 ... 1969.................................. 1970................................. 1971 - 1972.................................. 1973.................................. 1974.................................. 1975.................................. 1976.................................. 1977.................................. 1978................................ 1979.................................. 1980................................ 1981.................................. 1982.................................. 1983 ................................ 1984.................................. 1985.................................. 1986.................................. 1987 .. 1987: Jan........................... Feb........................... Mar.......................... Apr........................... .......................... June......................... July.......................... Aug.......................... Sept......................... Oct........................... Nov .........- ... Nn. Dec .......................... 1988: Jan........................... Feb........................... M ar....................... Ar........................... 2lay .......................... June......................... July.......................... Aug.......................... Sept......................... Oct........................... Nov .......................... 16.7 18.5 20.6 22.1 22.7 24.1 25.7 26.5 26.1 25.8 26.2 27.7 28.6 29.8 29.8 30.1 30.8 30.9 31.4 31.9 32.3 33.3 34.3 35.7 37.5 39.5 39.9 41.2 45.8 50.1 55.1 59.0 61.7 70.5 83.1 93.2 97.0 99.3 103.7 106.4 102.3 105.4 102.6 103.1 103.3 104.2 104.7 105.4 106.0 106.5 106.6 107.1 107.8 107.6 107.1 106.8 106.5 107.2 108.1 108.5 108.9 109.6 109.7 110.0 110.7 18.3 20.8 23.0 24.4 24.5 25.6 27.3 27.8 27.1 26.7 27.1 28.6 29.5 30.8 30.6 30.8 31.4 31.6 32.0 32.5 32.9 33.8 34.8 36.0 37.5 39.4 39.7 41.0 462 50.6 55.6 59.7 62.5 71.7 84.2 93.8 97.1 99.3 103.6 106.2 101.2 104.2 101.3 101.8 102.0 103.0 103.5 104.3 104.9 105.4 105.4 106.0 106.8 106.5 106.0 105.7 105.4 106.0 107.0 107.4 107.8 108.6 108.6 109.0 109.6 34.1 37.3 40.8 41.1 43.1 46.8 47.2 46.5 44.8 46.1 48.5 50.0 52.2 51.5 51.5 51.3 51.0 50.9 49.7 48.8 49.3 50.7 51.5 53.0 55.2 54.7 54.8 57.9 62.9 66.9 70.4 75.8 81.8 88A 93.7 97.4 99.9 102.8 106.1 110.6 114.6 114.8 113.5 113.1 113.6 114.0 114.3 114.7 114.4 114.1 115.2 116.6 116.6 116.2 116.2 116.0 115.9 116.3 116.5 116.5 116.3 116.8 117.7 118.7 l.............. .............. .............. .............. .............. .............. 26.7 22.7 21.5 20.7 23.2 24.0 26.8 25.0 26.0 28.4 28.7 30.0 29.8 29.0 29.9 31.2 33.0 33.1 35.2 36.7 43.8 50.3 54.7 55.8 60.2 62.3 76.9 88.8 98.7 112.5 113.7 108.8 113.1 106.2 106.9 108.7 11.3 113.4 114.7 115.4 115.5 116.0 116.2 116.5 116.3 116.0 116.0 116.1 116.6 117.0 117.6 117.9 119.2 119.4 119.9 119.7 14.5 16.4 18.6 19.1 19.0 19.5 20.0 21.2 21.8 22.1 22.8 23.8 23.4 23.7 24.4 24.1 24.3 24.2 24.1 25.1 25.6 26.4 26.8 27.6 27.9 28.1 28.4 31.2 42.2 45.1 47.0 49.7 51.8 70.1 97.4 108.5 102.8 99.4 97.9 98.7 77.1 80.2 72.8 76.0 76.6 78.5 79.1 80.8 82.2 84.3 84.0 83.2 83.2 82.0 79.7 78.3 77.5 79.4 81.4 81.4 82.3 84.1 83.1 81.6 81.5 15.8 17.1 18.1 18.6 18.9 20.4 20.8 22.0 22.7 23.2 24.2 25.0 25.4 26.0 26.5 27.1 27.5 27.8 28.2 28.7 29.2 30.4 32.1 34.1 36.6 39.3 41.1 43.2 47.6 53.7 57.6 61.9 67.0 73.7 81.5 89.2 96.0 100.3 103.8 106.8 110.3 114.8 112.8 113.3 113.3 114.3 114.3 114.4 114.5 115.1 115.7 116.1 116.5 116.9 117.2 117.7 118.5 118.8 119.3 119.7 120.0 120.3 120.9 121.1 121.5 ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... 37.9 39.2 41.6 45.2 40.6 48.9 48.4 50.2 53.5 61.8 67.2 69.9 75.2 84.3 91.4 97.7 98.8 103.5 109.0 115.1 120.8 119.3 118.9 119.1 119.4 119.7 120.3 120.8 120.7 121.1 122.8 123.8 123.8 124.7 125.0 124.9 125.0 126.3 127.2 127.5 128.7 129.3 131.0 132.1 9.4 9.9 11.2 12.4 13.4 14.8 15.8 16.8 18.0 18.5 19.2 19.9 20.9 21.5 22.2 23.2 24.0 24.3 24.7 25.2 26.1 27.4 28.7 30.9 35.2 37.8 39.3 39.7 40.6 43.5 47.8 50.0 51.5 54.9 69.0 85.6 94.9 99.5 105.7 110.5 117.0 121.1 120.4 120.6 121.1 120.9 120.6 120.2 120.2 121.5 122.1 121.2 122.0 122.1 121.8 120.8 121.4 122.4 122.4 123.2 123.7 123.7 124.0 124.2 125.3 12.5 13.5 14.4 14.8 15.1 15.9 16.7 17.3 17.8 18.2 18.9 19.7 20.6 21.5 22.3 22.9 23.5 24.1 24.6 25.2 26.3 28.2 29.9 31.9 34.0 36.1 37.3 38.8 42.4 47.5 52.0 57.0 61.8 67.5 74.9 82.9 92.5 100.6 106.8 113.5 122.0 130.1 126.6 127.4 128.1 128.7 129.2 129.9 130.7 131.2 131.7 132.3 132.8 133.1 134.4 135.5 136.3 136.9 137.5 138.2 139.3 139.9 140.4 141.2 141.8 34.2 36.7 38.6 39.2 39.7 40.8 41.2 41.5 42.0 42.5 43.4 44.6 46.1 46.8 46.9 46.3 45.6 45.2 45.1 45.0 45.1 44.9 45.0 45.4 46.5 47.3 47.4 47.5 49.2 53.3 56.5 60.2 64.4 69.0 75.4 83.7 92.3 100.2 107.5 115.2 122.8 131.0 126.7 127.4 128.5 129.0 129.9 130.8 131.6 132.2 132.7 133.5 134.2 134.9 135.4 136.1 137.0 138.1 139.0 139.4 140.5 141.1 142.0 143.2 143.3 10.4 11.3 12.1 12.5 12.8 13.4 14.3 14.8 15.3 15.7 16.3 17.0 17.9 18.7 19.5 20.2 20.9 21.5 22.0 22.7 23.9 26.0 27.9 30.2 32.3 34.7 35.9 37.5 41.4 46.6 51.3 56.4 61.2 67.2 74.8 82.8 92.6 100.7 106.7 113.2 121.9 130.0 126.6 127.4 128.0 128.7 129.0 129.6 130.4 131.0 131.5 132.0 132.5 132.7 134.1 135.3 136.1 136.6 137.2 137.9 139.0 139.6 140.1 140.8 141.5 3 Includes direct pricing of new trucks and mutorcycles beginning September 1982. 4 Includes direct pricing of diesel fla and gasohul beginning September 1981. ' Not available. Note.-Data beginning 1978 are for all urban consumers; earlier data are for urban wage earners and clerical workers. See also Note, Table 8-58. Source Department of Labor, Breau of Labor Statistics. B-21 TABLE B-60.-Consumer price indexes, commodities, services, and special groups, 1946-88 [1982-84=100] Commodities Services Special indexes Comemodities less food STrv- All Yeareor All AlMedi- ie All All fterns month items Al Fed All cal less items iteAns iess Ene ncom- ies 41 bledu Foo Non servies caUre meVd i- les o l d es n fort ond tgly A medities All Durable durable~ sure- Cal es aed a durablecalr ee eeergy ener- i i gy~~~~~~~~cr 1946........... 1947........... 1948........... 1949........... 1950........... 1951........... 1952........... 1953.......... 1954......... 1955........... 1956......... 1957 . . 1958........... 1959 ........... 1960........... 1961....--. 1962....... 1963.. 1964...-. 1965.... .- 1968...- 1969.- - 19701.... 1971_-..- 1972...... 1973...... 1974.---- 1975 ..... . 1980-.-.- 1978....._ 1982. ._ 1978- 19798. 1980 ...... 1F81...._.. r82.... 1983...-.- g84 .... Me86n...... D987...... 1987: Jan... Fhb. Mar.... June.. Jul.... Aug.... Sept.. Oct... Nu.... J'r...-: 19.5 22.3 24.1 23.8 24.1 26.0 26.5 26.7 26.9 26.8 27.2 28.1 28.9 29.1 29.6 29.9 30.2 30.6 31.0 31.5 32.4 33.4 34.8 36.7 3&88 40.5 41.8 4.4 49.3 53.8 56.9 60.6 65.2 72.6 82.4 98.9 96.5 99.6 1039 107.6 109.6 113.6 111.2 111.6 112.1 112.7 113.1 113.5 113.8 114.4 115.0 115.3 115.4 115.4 115.7 116.0 116.5 117.1 117.5 118.0 118.5 119.0 119.8 120.2 120.3 22.9 27.6 29.6 28.8 29.0 31.6 32.0 31.9 31.6 31.3 31.6 32.6 33.3 33.3 33.6 33.8 34.1 34.4 34.8 35.2 36.1 36.8 38.1 39.9 41.7 43.2 4.5 47.8 53.5 58.2 60.7 64.2 68.8 76.6 86.0 93.2 97.0 99.8 103.2 105.4 104.4 107.7 105.3 105.8 106.4 107.2 107.5 107.7 107.6 108.2 108.9 109.3 109.5 109.3 109.2 109.1 109.8 110.7 111.1 111.1 111.5 111.9 113.0 113.5 113.5 19.8 24.1 26.1 25.0 25.4 28.2 28.7 28.3 28.2 27.8 28.0 28.9 30.2 29.7 30.0 30.4 36.6 31.1 31.5 32.2 33.8 34.1 35.3 37.1 39.2 40.4 42.1 48.2 55.1 59.8 616 65.5 72.0 79.9 86.8 93.6 97.4 99.4 103.2 105.6 109.0 113.5 112.1 112.5 112.5 112.8 113.3 113.8 113.7 113.8 114.1 114.3 114.2 114.7 115.7 115.7 115.9 116.6 117.0 117.6 118.8 119.4 120.2 120.3 120.2 26.3 29.7 31.9 31.5 31.4 33.8 34.1 34.2 33.8 33.6 33.9 34.9 35.3 35.8 36.0 36.1 36.3 36.6 36.9 372 37.7 38.6 40.0 41.7 43.4 45.1 461 47.71 52.8 57.6 60.5 63.8 67.5 75.3 85.7 931 96.9 100.0 103.1 105.2 101.7 104.3 101.4 102.0 102.9 103.9 104.0 104.1 104.1 104.9 105.7 106.3 106.7 106.0 105.5 105.4 106.3 107.3 107.6 107.4 107.4 107.7 108.9 109.5 109.7 29.2 31.7 34.0 34.5 34.9 37.5 38.0 37.7 36.8 36.1 36.1 37.2 37.8 38.4 38.1 38.1 38.5 38.6 39.0 38.8 38.9 39A 40.7 42.2 44.1 46.0 46.9 48.1 51.5 57.4 60.9 64.4 68.6 75.4 83.0 89.6 95.1 99.8 105.1 106.8 106.6 108.2 107.4 107.0 107.2 107.7 107.9 108.2 108.4 108.3 108.3 108.8 109.6 109.5 109.4 109.4 109.5 109.7 109.9 110.2 110.3 110.3 110.6 111.1 111.8 23.6 27.1 29.2 28.7 28.6 30.8 31.0 31.2 31.4 31.4 32.0 32.9 33.1 33.5 34.1 34.3 34.5 34.8 35.1 35.6 36.4 37.6 39.1 40.9 42.5 44.0 45.0 46.9 52.9 57. 59.5 62.5 65.5 74.6 88.4 96.7 98.3 100.0 101.7 104.1 98.5 101.8 97.4 98.6 100.1 101.3 101A 10A 101.3 102.6 104.0 104.6 104.8 103.7 102.8 102.7 104.1 105.6 106.0 105.5 105.4 105.9 107.7 108.3 108.2 14.1 14.7 15.6 16.4 16.9 17.8 18.6 19.4 20.0 20.4 20.9 21.8 22.6 23.3 24.1 24.5 25.0 25.5 26.0 26.6 27.6 28.8 30.3 32.4 35.0 37.0 38.4 40.1 43.8 48.0 52.0 56.0 60.8 67.5 77.9 88.1 96.0 99.4 104.6 109.9 115.4 120.2 117.7 118.1 118.5 118.9 119.3 120.1 120.5 121.2 121.7 121.9 122.0 1222 122.9 123.4 123.8 124.1 124.6 125.5 126.1 126.7 127.3 127.6 127.8 10.4 11.3 12.1 12.5 12.8 13.4 14.3 14.8 15.3 15.7 16.3 17.0 17.9 18.7 19.5 20.2 20.9 21.5 22.0 22.7 23.9 26.0 27.9 30.2 32.3 34.7 35.9 37.5 41.4 46.6 51.3 56.4 61.2 67.2 74.8 82.8 92.6 100.7 106.7 113.2 121.9 130.0 126.6 127A 128.0 128.7 129.0 129.6 130.4 131.0 131.5 132.0 132.5 132.7 134.1 135.3 136.1 136.6 137.2 137.9 139.0 139.6 140.1 140.8 141.5 .............. .............. .............. .............. .............. ............... .............. ............... ............... ............... 22.8 23.6 24.2 25.0 25.4 25.9 26.3 26.8 27.4 28.3 29.3 30.8 32.9 35.6 37.5 38.9 40.6 44.3 48.3 52.2 55.9 60.7 67.5 78.2 88.7 96.4 99.2 104.4 109.6 114.6 119.1 116.7 117.0 117.4 117.8 118.2 119.0 119.4 120.1 120.6 120.8 120.8 121.0 121.7 122.1 122.4 122.8 123.2 124.1 124.7 125.3 125.9 126.2 126.3 19.8 21.7 23.3 23.5 23.8 25.3 25.9 26.4 26.6 26.6 27.1 28.0 28.6 29.2 29.7 30.0 30.3 30.7 31.1 31.6 32.3 33.4 34.9 36.8 39.0 40.8 42.0 43.7 48.0 52.5 56.0 59.6 63.9 71.2 81.5 90.4 96.3 99.7 104.0 108.0 109.8 113.6 111.0 111.4 112.0 112.7 113.0 113.5 113.8 114.5 115.1 115.5 115.7 115.5 115.7 116.0 116.6 117.2 117.6 118.1 118.4 118.9 119.7 120.2 120.3 ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... 28.9 29.7 29.9 30.4 30.7 31.1 31.5 32.0 32.5 33.5 34.4 35.9 38.0 40.3 42.0 43.4 46.1 50.6 55.1 58.2 61.9 66.7 73.4 81.9 90.1 96.1 99.6 10423 108.4 112.6 117.2 115.0 115.3 115.8 116.4 116.7 116.9 117.1 117.6 118.3 118.9 1192 119.2 119.7 120.0 120.6 121.2 121.5 121.8 122.3 122.8 123.8 124.4 124.7 .............. . ............. . ............. .............. .............. .............. .............. .............. . ............. .............. 28.9 29.6 30.2 30.6 31.0 31.4 31.8 32.3 32.7 33.5 34.7 363 38.4 40.8 42.7 44.0 45.6 49.4 53.9 57.4 61.0 65.5 71.9 80.8 89.2 95.8 99.6 104.6 109.1 113.5 118.2 115.8 116.1 116.8 117.4 117.6 117.7 118.0 118.6 119.4 120.1 120.5 120.4 120.8 121.1 121.9 122.4 122.7 123.0 123.3 123.8 124.7 125.5 125.8 ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ .25 21.5 21.9 22.4 22.5 22.6 22.6 22.5 22.9 23.3 23.8 24.2 24.8 25.5 26.5 27.2 29.4 38.1 42.1 45.1 49.4 52.5 65.7 86.0 97.7 99.2 99.9 100.9 101.6 88.2 88.6 83.9 85.6 85.8 86.4 87.4 90.7 91.1 92.7 92.3 89.8 89.0 88.3 87.4 87.0 86.5 87.3 88.7 91.0 91.4 92.3 91.9 89.9 88.9 B-22 I Houseedd fuels-gas (piped), electricity, fuel oil, etc.-an motor fuel. Motor oil, coolant, etc. also included through 1982. Note.-Data beinning 1978 are for all urban consumers; earier data are for urban wage earners and clerical workers. Source Department of labor, Bureau of Labor Statistics. I TABLE B61.-Cbange in special consumer price indexes, 1958-88 [Percent changel AAl itemns less All item less All itemns less food All itemns less food, All its food energy and energy energy, and shelter Year or month Dec. Year Dec. Year Dec.] Year Dec. Year Dec yew to to to _to to to to I to Dec. yea Dec.' jyear Dec.' yea IDec., year Dec.'I year 1958........................ 1959........................ 1960........................ 1961........................ 1962........................ 1963........................ 1964 . 1965......................... 1966........................ 1967......................... 1968......................... 1969......................... 1970......................... 1971......................... 1972......................... 1973......................... 1974......................... 1975. . .. 1976 . ... 1977 . 1978 ...... 1979 . -. 1980 .... . . ..... 1981 .... 1982 .. 1983 . .- 1984.. . .. 1985................ 1986 ... 1987........................ 1987: Jan. .... Fd.................. ar......... July . Aug............. June. Juy................. Aug................ Sept. Oct. No9 ................. Feb .................. mar8 Ja.................. F.................. Ia................. June................. Julye................. Aug ................. Sept ................ Oat.................. NhOV................. 1.8 1.7 14 .7 1.3 1.6 1.0 1.9 3.5 3.0 4.7 6.2 S.6 3.3 3.4 8.7 12.3 8.9 4.9 6.7 9.0 13.3 12.5 8.9 3.8 3.8 3.9 3.8 1.1 4.4 2.8 .7 1.7 1.0 1.0 1.3 1.3 1.6 2.9 3.1 4.2. 5.5 5.7 4.4 3.2 6.2 11.0 9.1 5.8 6.5 7.6 113 1.5 10.3 6.2 3.2 4.3 3.6 1.9 3.6 1.8 2.1 1.0 1.3 1.0 1.6 1.0 1.6 3.5 3.3 5.0 5.6 6.6 3.0 2.9 5.6 12.2 7.3 6.1 6.4 8.3 14.0 13.0 9.8 4.1 4.1 3.9 4.1 .5 4.6 2.1 2.1 1.7 1.0 1.0 1.3 1.3 1.6 2.2 3.4 4.5 5.4 6.0 4.6 2.9 4.0 9.8 9.4 6.7 6.4 7.2 11.4 14.5 10.9 6.5 3.5 4.3 3.8 1.7 3.5 2.1 1.3 1.3 .7 1.3 1.9 1.3 1.9 3.4 3.2 4.9 6.5 5.4 3.4 3.5 8.2 11.7 6.6 4.8 6.7 9.1 11.1 11.7 8.5 4.2 4.5 4.4 4.0 3.8 4.1 2.8 .7 1.7 10 1.3 1.3 1.6 1.6 3.1 2.7 4.4 5.8 6.1 4.2 3.3 6.2 9.8 8.9 5.6 6.4 7.8 10.0 11.6 10.0 6.7 3.6 4.7 3.9 3.9 4.1 1.7 2.0 1.0 1.3 1.3 1.6 1.2 1.5 3.3 3.8 5.1 6.2 6.6 3.1 3.0 4.7 11.1 6.7 6.1 6.5 8.5 11.3 12.2 9.5 4.5 4.8 4.7 4.3 3.8 4.2 2.4 2.0 1.3 1.3 1.3 1.3 1.6 1.2 2.4 3.6 4.6 5.8 6.3 4.7 3.0 3.6 8.3 9.1 6.5 6.3 7.4 9.8 12.4 10.4 7.4 4.0 5.0 5.3 4.0 4.1 .................. .................. .................. .................. .................. .................. .................. .................. .................. ........... .... 4.6 5.1 5.8 .3.1 2.7 3.5 11.3 6.4 6.9 5.3 6.4 7.3 9.8 9.4 6.1 5.0 4.3 3.7 3.3 3.8 ................ ................ ................ ................ ................ ................ ................ ................ ................ 4.7 4.7 5.2 4.9 2.4 2.9 7.7 8.9 7.1 6.0 5.6 6.9 8.8 9.6 7.7 5.2 5.0 3.8 3.4 3.8 I Change frwn precedlng period Sea- Sea- Sea- Sea- Sea Unad- son Unad- sonallY Uad- sonally Unad- sonally Unad- sonallY justed ad-l justed ad- justed ad justed ad- justed . ad- justOed justed justed justed justed 0.6 .4 A4 .5 .4 .4 .3 .5 .5 .3 .I 0 .3 .3 .4 .5 .3 .4 .4 .4 .7 .3 .1 0.7 A .4 A .3 .3 .3 .3 .3 .2 .3 .2 .5 .4 .3 .3 .4 .4 .3 .4 .3 0.5 .4 .5 .6 .3 .4 .3 .6 .5 .3 .2 -.2 .2 .3 .5 .5 .3 .4 .3 .4 .7 .4 .1 0.6 .4 .5 .4 .3 .3 .4 .5 .2 .3 .3 .1 .4 .3 .4 .4 .3 .3 .3 .3 .3 .4 .3 0.4 .3 .4 .5 .3 .2 .2 A4 .6 .5 .3 0 .4 .3 .5 .5 .2 .2 .4 .4 .8 .5 .2 0.5 .2 .4 .5 .3 .3 .3 .3 .3 .4 .3 .3 .5 2 .5 .4 .4 .3 .5 .3 .4 .5 2 0.3 .3 .6 .5 .2 .1 .3 .5 .7 .6 .3 -.1 .3 .2 .7 .4 2 .2 .2 .4 .7 .6 .2 0.4 .3 .5 .4 .3 .2 .3 .4 2 .5 .3 2 .5 .2 .6 .4 2 .4 .3 .2 .4 .5 .3 0.1 32 .7 .5 .2 0 .1 .4 .9 .7 .3 -.3 .1 .3 .8 .6 .2 .1 .1 .2 1.1 .0 .2 0.5 :2 .4 .5 .3 .2 .2 .3 .3 .5 .3 0 .5 .3 .5 .6 .3 .2 .3 .2 .5 .7 .2 B-23 ' Changes from December to Decenher are based on unadjusted indexes. Note.ata beginning 1978 are for aU urban consumers; earlier data are for urban wage earners and clerical workers. See alo Note, Table 8-58. Source: Deparbment of abor, Bureau of Labor Statistics. TABLE B-62.-Cbanges in consumer price indexes, commodities and services, 1929-87 [Percent change] All items Comnmodities Services Energy' Total Food Comnmodities Total Medical care Year Dec. Year less toed seroices Dec. Year to Ia Dec. Year Dec. Year Dec. Year Dec. Year Dec. Yer to to Dec.'I year to to to to to to to to to to Dec' year Dec.'I year D)ec. year Dec I er Dec.' year Dec , year 1929.... 1933.... 1939.... 1040 ... 1941.... 1942.... 1943.... 1944.... 1945. 19460.... 1947.... 1948.... 1949.... 1950.... 1951.... 1952.... 1953.... 1954.... 1955. 1956.... 1957.... 1958.... 1959.... 1960.... 1961.... 1962. 1963.::: 1964.... 1965. 1966.... 1967.... 1968. 1969.::: 1970.... 1971.... 1972.... 1973.... 1974.... 1975.... 1976.... 1977 1978.::: 1979.... 1980.... 1981.... 1982 1983.::: 1984.... 1985.... 1986. 1987.... 0.6 0 ............... 2.5 1.? .8 -5 .1............... 6.9 -2.8 0 9.9 9.0 3.0 2.3 2.2 18.1 8.8 3.0 -2.1 5.9 6.0 .8 .7 -.7 .4 3.0 2.9 1.8 1.7 1.4 .7 1.3 1.6 1.0 1.9 3.5 3.0 4.7 6.2 5.6 3.3 3.4 8.7 12.3 6.9 4.9 6.7 9.0 13.3 12.5 8.9 3.8 3.8 3.9 3.8 1.1 4.4 -1.4 5.0 10.9 6.1 1.7 2.3 8.3 14.4 8.1 -1.2 1.3 7.9 1.9 .8 .7 -.4 1.5 3.3 2.8 .7 1.7 1.0 1.0 1.3 1.3 1.6 2.9 3.1 4.2 5.5 5.7 4.4 3.2 6.2 11.0 9.1 5.8 6.5 7.6 11.3 13.5 10.3 6.2 3.2 4.3 3.6 1.9 3.6 -0.7 1.4 13.3 12.9 4.2 2.0 2.9 24.8 10.3 1.7 -4.1 7.8 5.9 -.9 -.3 -1.6 -.3 2.6 2.8 1.2 .6 1.2 0 151 .9 1.4 2.5 2.5 4.0 5.4 3.9 2.8 3.4 10.4 12.8 6.2 3.3 6.1 8.8 13.0 11.0 6.0 3.96 2. 2.7 2.5 -2.0 4.6 -2.0 6.7 14.5 9.3 1.0 3.0 10.6 20.5 7.2 -2.7 .7 9.0 1.3 -.3 -.9 -.9 1.0 3.2 2.1 0 .9 .6 .9 .9 1.2 1.1 2.6 1.9 3.5 4.7 4.5 3.6 3.0 7.4 11.9 8.8 4.3 5.8 7.2 11.3 12.3 8.4 4.1 2.9 3.4 2.1 -.9 3.2 -2.5 2.5 15.7 17.9 3.0 3.5 31.3 11.3 -.8 -3.9 9.8 7.1 - 1.1 -1.8 -.7 2.9 2.8 2.4 1.3 2.0 1.3 3.51 4. 1.2 4.4 7.0 2.3 4.3 4.6 20.3 12.0 6. .5 81 11.8 10.2 10.:2 4.3 3.1 2.7 3.8 2.6 3.8 3.5 -2.5 1.7 9.2 17.6 11.0 -1.2 2.4 14.5 21.7 8.3 -4.2 1.6 11.0 1.8 -1.4 -.4 -1.4 .7 3.2 4.5 -1.7 1.0 1.3 .7 1.6 1.3 2.2 5.0 .9 3.5 5.1 5.7 3.1 4.2 14.5 14.3 8.5 3.0 6.3 9.9 11.0 8.6 7.8 4.1 2.1 3.8 2. 3.2 4.1 0.5 .5 10.7 6.3 5.5 4.7 3.3 12.7 9.2 5.2 -4.6 5.95 4. -.6 .3 -1.5 0 2.70 .8 1.4 -.3 .8 .6 1.4 .3 .8 1.9i 3.1 3.6 4.7 4.'7 2.2 2.6 4.9 13.2 6.1 5.1 4.8 7.7 14.3 11.5 6.7 3.8 3.1 2.1 .2.4 -5.3 5.1 -1.6 .5 5.4 10.8 4.6 5.3 4.2 6.0 12.9 7.4 -1.3 -.3 7.6 .9 .3 -1.2 -.6 .9 2.9 1.1 1.4 .6 .3 .6 .8 .8 .8 1.3 2.4 3.6 4.3 4.1 3.9 2.2 3.5 10.7 9.1 5.0 5.5 5. 11.6 13.8 8.6 4. 3.21 3.1 2.0 -3.3 2.6 0 .8 2.4 2.3 2.3 2.2 .7 3.6 5.6 5.9 3.7 3.6 5.2 4.4 4.2 2.0 2.0 3.4 4.2 2. 3.9 2.5 2.1 1.6 2.4 1.6 2.7 4.8 4.3 5.8 7.7 8.1 4.1 3.4 6.2 11.4 8.2 7.2 8.0 9.3 13.6 14.2 13.0 4.3 4.8 5.4 5.1 4.5 4.3 0 .8 .0 3.1 2.3 2.2 1.5 1.4 4.3 6.1 5.1 3.0 5.3 4.5 4.3 3.1 2.0 2.5 4.3 3.7 3.1 3.4 1.7 2.0 2.0 2.0 2.3 3.8 4.3 5.2 6.9 8.0 5.7 3.0 4.4 9.2 9.6 8.3 7.7 8.6 11.0 15.4 13.1 9.0 3.5 5.2 S.1 5.0 4.2 1.2 0 1.2 3.5 5.6 3.2 3.1 9.0 6.4 6.9 1.6 4.0 5.3 5.0 3.4 2.6 3.2 3.8 4.8 4.6 4.9 3.7 3.5 2.9 2.8 2.3 3.6 8.3 8.0 7.1 7.3 8. 5.4 3.7 6.0 13.2 10.3 10.8 9.0 9.3 10.5 10.1 12.6 11.2 6.2 5.8 6. 7.98 5.6 1.2 3.5 4.5 4.3 3.1 5.1 8.7 7.1 3.3 2.4 4.7 6.7 3.5 3.4 2.6 3.8 4.3 5.3 4.5 4.3 3.6 3.5 2.9 2.3 3.2 5.3 8.8 7.3 8.2 7.0 7.4 3.5 4.5 10.4 12.6 10.1 9.9 8.5 9.0 11.3 10.7 11.8 8.7 6.0 6.1 7.7 6.6 -.9...... 4.7...... 13...... -13...... 2.2...... -.9...... 0....... 1.8...... 1.7...... 17...... 17...... 2.9...... 4.8...... 47. 7.2 71.9 37.5 1.8. 119 137 1.5 2.2 418 8.2 19..... 2.3..... . 4..... . 4..... 0...... -.4..... 18..... 17..... 2.1..... 1.7..... 2.5..... 2.8..... 3.9..... 10.5 7.1 9.5 6.3 309 13.6 1.5 1.7 210 1.7 -3.2 9.5 '(Iaogo from Decemnber to December are based on unadjusted indexe. 'Hoseol tools-gas (piped) electricity, tool oil, etc.-and motor tool. Mater oil, coolaot, etc. also incloded through 1982. Nate.-Data beginniog 1978 are tar all urbao consumers; earlier data aro tar urban wage earners and clerical markers. See also Note, Table 5-50. Source: Department at Labor, Bureau at Labor Statistics. B-24 ..............................I..............I..............I.......................................................... ..........................................................................................I............................ I I C. EMPLOYMENT AND EDUCATION RESTRUCTURING CALIFORNIA EDUCATION A Designfor Public Education in the Twenty-First Century :Reco mendations to the Califoria Business Roundtable SUMMARY BW Associates (c) Copyright 1988 by Berman, Weiler Associates. Reprinted by permission. C-1 U :S' i.0.. . ::: f.; - I I EXECUTIVE SUMMARY THE FUTURE IS IN OUR HANDS California has an historic opportunity. Over the next decade, the state's economy is likely to produce a surplus of challenging jobs. Exciting careers in a global economy will be possible, and the present cycle of poverty, under- employment, welfare and crime could be broken. Education is the key to realizing this bright fu- ture. As the country shifts to an information soci- ety, California's competitiveness will depend on the problem-solving, initiative, creativity, and cooperation of all segments ofthe workforce. Rather than stopping with either rudimentary literacy or the accumulation of specialized facts, workers in all occupations, as well as professionals, will need to learn throughout their lives. And all youth- whether from middle-class or from poor, non- English speaking, and "minority` backgrounds- will need to receive an education that enables them to participate fully in the active society of the 21st Century. This opportunity poses extraordinary challenges for California's public elementary and secondary school system. The knowledge and skills of today's average student are far below that needed for the future. Most students simply are not equipped to succeed in the coming job market. Almost half leave school as dropouts or as high school gradu- ates who are barely literate, and are at great risk of becoming part of California's underemployed and unemployable. And matters may get worse. K- 12 enrollment will increase a phenomenal 142,000 students peryear over the next ten years. In light of this forty percent expansion, will the public schools as pres- ently organized be able to maintain their current level of performance, let alone rise to the level of excellence needed for the future? And how will the greatly increased demand for teachers be met, given enrollment growth, today's teacher shortages, increased retirements, and the difficulty public schools now have in attracting and retaining teachers? Enrollment growth also could mean a staggering financial burden. If expenditures per pupil remain constant, funding for public schools will double to over $40 billion in ten years; if the level is in- creased to match New York's expenditures per pupil (as some have advocated), spending on public K-12 education could exceed $65 billion by the close of the centuiy. Will Californians be willing to support these large budgets for an education sys- tem that is not keeping pace with the needs of the future? These economic, demographic, and financial realities lead to an inescapable conclusion: Small improvements are no longer acceptable. To meet the challenge of the 21stCentury, California education needs to operate at a new plateau of student performance, teacherproductivity, and cost-effectiveness. C-2 CALIFORNIA TOMORROW? With over one-third of its students dropping out, California's school system now ranks 44th in the nation. Without great improvement, well over a million students will have left before graduation between now and the year 2000, another fifty thousand high school graduates per year will be barely literate, adding to California's five million functionally illiterate adults. But even these numbers understate the problem. Most of the future's enrollhent increase will be students from poor, single-parent, and minority backgrounds-a population truly "at-risk" in the current system. NEW STRUCTURE, INCENTIVES AND ATTITUDES ARE NEEDED Continued tinkering with the public schools wlll not solve the profound difficulties fac- ing educators. The problem is not a lack of money, or an absence of dedicated and competent teachers. More. money, higher standards, and minor improvements will at best result in small gains. The problem is the system itself. Designed originally for a different student popula- tion, a more coherent family and social structure, and a less complex knowledge-base and employ- ment situation, the current educational system has Uiherent lmitations preventing educators from responding effectively to a rapidly changing world. Some limitations have arisen from overly restric- tive state laws and regulations; others from a growing imbalance in authority between districts and schools; and still others from management and teaching practices that have become obsolete as knowledge has expanded exponentially and the responsibilities placed on schools have grown. Beneath all these rules, regulations, and ingrained practices lies a set of attitudes-that teachers and administrators cannot be trusted; that some stu- dents, particularly from poor, non- English speak- ing, and minority backgrounds, cannot or do not want to learn; that parents and communities should not be part of the educational process. If California is to achieve the breakthroughs needed in student performance, teacher productivity and cost-effectiveness, limitations that prevent inno- vation must be removed. New attitudes that pro- mote excellence, experimentation, and full par- ticipation of parents, teachers, and administra- tors must become the norm. Current effective improvement efforts must be extended and reinforced, and California must gradually but deliberately move toward a new system based on different operating principles. The box below recommends principles for restruc- turing the public schools. The facing page offers an overview of this report's proposals for realizing these principles. C-3 : PRINCIPLES FOR A NEW EDUCATION SYSTEM =Perforance-based ;- Studts, tea r adiisas, schools, and districts should be evaluated according to thperfo a nd held accountable for results. School Autonomy I- 'Principals and teachers should have the authority and support to provide quality education attuned to community needs and characteristics. Parental Choice and Flexible Alternatives Parents should be able to choose schools and schooling appropriate to their children, including small-school, flexible environments in which parents are actively involved. Incentives and Innovation Teachers and administrators should have incentives for high performance, pro- ductivity, efficiency, and the use of modem technologies. Professionalism Teaching should be an honored, respected and well-paid profession in which teachers are compensated according to their ability, experience and responsibilities. Pluralism The learning gap between poor minority and other children should be eliminated, and ethnic, linguistic, and cultural diversity should be treated as a strength. . - . - - . . . - . * - * * * - - THE RECOMMENDATIONS 1. EXPAN AN FOCUS SCHOOLIG A. Establish primary schooling for all students B. Focus and consolidate elementary and secondary education on core academics C. Institute a post- 10 student option of specialized education 2. ESTABLISH ACCOUNTABILITY BASED ON PERFORMANCE AND CHOICE A. Set student performance goals, institute state-wide exit tests, and deregulate schooling B. Strengthen school performance reports and intervene in failing schools C. Support parental choice of expanded school options 3. ESTABLISH SCHOOL AUTONOMY, AND EMPOWER PARENTS, TEACHERS, PRINCIPALS A. Provide schools with discretionary budget funding and authority B. Involve parents, community members and teachers in school governance C. Expand teacher responsibilities and promote team approaches to instructional management 4. MODERNIZE INSTRUCTION A. Redirect staff development to advance implementation of effective practices B. Enable all schools to integrate technology into instruction and management C. Promote adoption of flexible educational programs 5. STRENGTHEN THE TEACHING PROFESSION A. Establish multi-tiered teaching system with higher salary rates B. Upgrade process of becoming a teacher C. Assure continuing high professional standards 6. CAPITALIZE ON DIVERSITY A. Build school capacity to provide English language acquisition B. Assure foreign language proficiency for all children C. Establish critical and minority teacher shortage program C-4 THE VISION: The Evolution of A New Education System If inplemented, the recommendations would inaugurate a new era for public education. Tomorrow's system would give schools more autonomy and make performance the driving force for inprovement Parent, student, and teacher choice and accountability would accompany greater local autonomy, stimulating excellence in all schools andfor all students. STUDENTS would be expected to learn much more and learn in depth. They would leave the education system with the core skills, knowledge, and attitudes needed for a full and productive life. They would emerge with high self-esteem and confidence that they can succeed. Students who can advance quickly would be given the opportunity to do so. Pupils from poor, minor- ity families would be treated the same as all other students. Rather than being assigned to a cycle of remediation, failure, and dropping out, theywould be held to high expectations. Along with all other children, they would receive the support they need to live up to their potential. Non-English spealdng children would be expected to master English, and be given appropriate early balnng to allow them to do so; English-speaking children would acquire a second language, and their train- ing would start early. Students also would be more responsible for their education. They would be promoted when they master material, not because they have simply attended the required classes. Once having mas- tered core material, they would have the opportu- nity to select education that will advance their career ambitions. PARENTS would play a vital role in their children's education. They would have the right to choose schooling, and exercise influence over schools. Parents would be given the information and au- thority to hold schools accountable for delivering high quality education. And they would be ex- pected to contribute to their school and their children's learning starting at the very outset of schooling. TEACHERS would be able to create and choose educational programs that fit their students' needs and their own styles. They would be responsible for employing new, effective instructional meth- ods with the help of advanced technology. They would be encouraged and expected to evolve more flexible concepts of how instruction is delivered. New teachers would be better trained, existing teachers would receive staff development as an integral part of their jobs, and all teachers would have the time to develop their skills and creativity. Teachers would be treated as professionals, paid more, and expected to pass exacting evaluations to demonstrate their professionalism. But not all teachers would have the same respon- sibilities. Some would participate in school super- vision and decision-making, and hold more responsibility for planning and directing the efforts of others. Paraprofessional assistant teachers would be integrated into schools to aid instruc- tion-and make it more efficient. Teachers would work in collaborative teams rather than continue their present isolation. Together they would be responsible for the learning of each student. C-5 SCHOOLS and PRCIPALS would have the budg- etary and legal authority to develop effective, effi- cient, and flexible programs. They would be able to buy the services they need to improve their productivity and the quality of learning. Small schools would be created within larger schools. Instead of today's largely uniform institu- tions, each school and school-within-a-school would have a distinctive educational philosophy and identity. The flavor and spirit of the typical public school would be comparable to the very best private or public schools. The principal would operate in partnership with teachers to implement a shared vision for the school, and they would make decisions collegially. Most schools would operate on a year-long sched- ule, and create course schedules that make effi- cient use of staff and student time. Some classes might be large, given only twice a week, and employ long-distance learning technologies; others classes might be small and intensively focused; stfll others might be arranged for individ- ual learning. This freedom at the school site would be balanced by performance-based measures to allow parents, districts, and, in the last resort, the state to hold schools accountable for productive operations and high levels of student learning. DISTRICTS would, as now, have the responsibility to monitor and facilitate school operations. This essential role would be strengthened because dis- tricts would reduce their current role in directing schools' educational programs. Even more so than today, districts would assist parents in holding schools accountable, and in providing quality control of school programs. Districts would be suppliers of services to schools in competition with other suppliers. They (and schools) would form consortia with other districts, post-secondary institutions, and private compa- nies to facilitate research, development, and train- ing of teachers and administrators in innovative instruction methods and technologies. Districts would continue to hire tenured and clas- sified employees, and conduct negotiations over pay and working conditions. But districts would not have the final say about school assignments- this would be a school-level prerogative. More- over, schools would be able to hire paraprofes- sional assistant teachers, and other non-tenured or classified staff. THE STATE (that is, the legislature, the State Board of Education, and the State Department of Education) would be concerned with performance, not with the education process. It would set goals for education, develop means for measuring the how well schools meet these goals, disseminate information about their performance, take a pro- active role in stimulating R&D and training, and provide an adequate level of financing. The state would work with teachers to set stan- dards for the teaching profession, and assure quality control. The state also would intervene in failing schools, and help them to develop and become outstanding-or not permit them to continue. C-6 STATISTICS C-7 TABLE B-31.-Population by age groups, 1929-88 [Thousands of persons] Age (years) July I Total Under5 | 5-15 16-19 J 20-24 25-44 45-64 | 65and 1929.......................... 1933.......................... 1939.......................... 1940.......................... 1941.......................... 1942.......................... 1943.......................... 1944.......................... 1945........................... 1946.......................... 1947........................... 1948 .. 1949........................... 1950........................... 1951........................... 1952 . 1953........................... 1954........................... 1955 .. 1956 .; 1957........................... 1958 . 1959.......................... 1960........................... 1961.......................... 1962........................ 1963........................... 1964........................... 1965........................... 1966........................... 1967........................... 1968.......................... 1969........................... 1970........................... 1971......................... 1972........................... 1973........................... 1974 . . 1975.......................... 1976........................... 1977........................... 1978.......................... 1979 . 1980.......................... 1981.......................... 1982.......................... 1983.......................... 1984.......................... 1985.......................... 1986.......................... 1987.......................... 1988.......................... 121,767 125,579 130,880 132,122 133,402 134,860 136,739 138,397 139,928 141,389 144,126 146,631 149,188 152,271 154,878 157,53 160,184 163,026 165,931 168,903 171,984 174,882 177,830 180,671 183,691 186,538 189,242 191,889 194,303 196,560 198,712 200,706 202,677 205,052 207,661 209,896 211,909 213,854 215,973 218,035 220,239 2 2 9 225,055 227,757 2308138 232,520 234,799 237,001 239,279 241,613 243,915 246,113 11,734 10,612 10,418 10,579 10,850 11,301 12,016 12,524 12,979 13,244 14,406 14,919 15,607 16,410 17,333 17,312 17,638 18t57 18,566 19,003 19,494 19,887 20,175 20,341 20,522 20,469 20,342 20,165 19,824 19,208 18,563 17,913 17,376 17,166 17,244 17,101 16,851 16,487 16,121 15,617 15.564 15,735 16,063 16,458 16,931 17,298 17,651 17,830 18,004 18,152 18,252 26,800 26,897 25,179 24,811 24,516 24,231 24,093 23,949 23,907 24,103 24,468 25,200 25,852 26,721 27,279 28,894 30,227 31,480 32,682 33,994 35,272 36,445 37,368 38,494 39,765 41,205 41,626 42,297 42,938 43,702 44,244 44,622 44,840 44,816 44,591 44,203 43,582 42,989 42,508 42,099 41,298 40,428 39,552 38,844 38'190 37,877 37,668 37,657 37,691 37,706 37,685 9,127 9,302 9,822 9,895 9,840 9,730 9,607 9,561 9,361 9,119 9,097 8,952 8,788 8,542 8,446 8,414 8,460 8,637 8,744 8,916 9,195 9,543 10,215 10,683 11,025 11,180 12,007 12,736 13,516 14,311 14,200 14,452 14,800 15,289 15,688 16,039 16,446 16,769 17,017 17,194 17,276 17,288 17,242 17,160 16,771 16,255 15,704 15,141 14,819 14,802 14,958 10,694 11,152 11,519 11,690 11,807 11,955 12,064 12,062 12,036 12,004 11,814 11,794 11,700 11,680 11,952 11,350 11,062 10,832 10,714 10,616 10,603 10,56 10,9690 11,134 11,483 11959 12,714 13,269 13,746 14,050 15,248 15,786 16,480 17,22 18,159 18,153 18,521 18,975 19,5271 19,986 20,499 20,946 21,297 21,984 21,821 21,807 21,700 21,536 21,214 20,608 19,984 35,862 37,319 39,354 39,868 40,383 40,861 41,420 42,016 42,521 43,027 43,657 44,288 44,916 45,672 46,103 46,495 46,786 47,001 411947 47379 47440 47331 47,192 47,140 47,084 47,013 46,994 46,958 46,912 47,001 47,194 41,721 48,064 48,473 48,936 50,482 51,149 53,051 54,302 55,852 57,561 59,400 61,379 63,494 65 619 67856 69,971 72,049 74,077 76,124 77,897 21,076 22,933 25,823 26,249 26718 27,196 27 671 28,138 28,630 29,064 29,498 1 29,9311 30,405 30,849 31,362 31,884 32394 32,942 33,5061 34,057 34,591 35,109 35,663 36,203 36,1221 37255 37,782 38,338 38,916 39,534 40,193 40,846 41,437 41,999 42,482 42,898 43,235 43,522 43,801 44,008 44,150 44,286 44,390 44,515 44,569 44,602 44,680 44,818 44,934 45,055 45,303 6,474 7,363 8,764 9,031 9,288 9,584 9,867 10,147 10,494 10,828 11,185 11,538 11,921 12,397 12,803 13,203 13,617 14,076 14,525 14,938 15,388 15,806 16,248 16,675 17,089 17,457 17,778 18,127 18,451 18,155 19,071 19,365 19,680 20,107 20,561 21,020 21,525 22,061 22,696 23,278 23,892 24,502 25,134 25,704 26,235 26,825 27,426 27,971 28,540 29,167 29,835 -.-1-.----- 1......I..............I.......................... C-8 Note.-Includes Armed Forces overseas beginning 1940. Includes Alaska and Hawaii beginning 1950. Source: Department of Commerce, Bureau of the Census. I...... . ............................ I TABLE B-32.-Pol)uhaoiioi ard ibe labor force, 1929-88 Monthly data seasonally adjusted, except as notedl Civilian labor force Unemploy- Civil. Civil- Labor Employ- ment rate ian ian Civilian Resi- t orco ment Employment labor em- noninsti- dtent includ- includ- Civil-force ploy- Year or month tutional Armed ing ing em- All Civil- r mentV popioUnl'a ForcooS, resident resident Total Agri Non ploy work ian taci lion' Armed Armed Total cot- agri- mot eS2 work- ula- Forces Forces tural cultural ers3 patron tion rate4 ration 1929 ................ 1933 ................ 1939................ 1940................ 1941 ................ 1942 ................ 1943................ 1944................ 1945 ................ 1946................ 1947................ 1947................ 1948................ 1949................ 1950................ 1951................ 1952................ 1953'.............. 1954................ 1955................ 1956................ 1957................ 1958................ 1959................ 1960 .............. 1961................ 19626.............. 1963................ 1964................ 1965................ 1966................ 1967................ 1968................ 1969................ 1970................ 1971................ 19726.............. 1973 .............. 1974................ 1975................ 1976................ 1977................ 19786.............. 1979................ 1980................ 1981 ................ 1982................ 1983................ 1984................ 1985 ................ 1986 6 ............. 1987................ 1984: Jan......... Feb......... Mar ........ Apr......... May........ June. July ........ Aug ........ Sept. Oct. Nov. Dec. .................. .................. 99,840 99,900 98,640 94,640 93,220 94,090 103,070 106,018 101827 .................. ... ............... 103 68 .................. ... ............... 103,994 .................. ... ............... 104,995 104,621 105,231 107,056 108,321 109,683 110,954 112,265 113,727 115,329 117,245 118,771 120,153 122,416 124,485 126,513 128,058 129,874 132,028 134,335 137,085 140,216 144,126 147,096 150,120 153,153 156,150 159,033 161,910 164,863 167,745 170,130 172,271 174,215 176,383 178,206 180,587 182,753 175,533 175,679 175,824 175,969 176,123 176,284 176,440 176,583 176,763 176,956 177,135 177,306 1,169 2,143 2,386 2231 2,142 2,064 1,965 1,948 1,947 1,788 1,861 1,900 2,061 2,006 2,018 1,946 2,122 2,218 2,253 2,238 2,118 1,973 1,813 1,774 1,721 1,678 1,668 1,656 1,631 1,597 1,604 1,645 1,668 1 676 1,697 1,706 1,706 1,737 1,686 1,694 1,686 1,693 1,690 1,690 1,698 1,712 1,720 1,705 1,699 1,698 Thousands ot persons 14 years of age and over 49,180 51,590 55,230 55,640 55,910 56,410 55,540 54,630 53,860 57,520 60,168 47,630 38,760 45,750 47,520 50,350 53,750 54,470 53,960 52,820 55,250 57,812 10,450 10,090 9,610 9,540 9,100 9,250 9,080 8,950 8,580 8,320 8,256 37,180 28,670 36,140 37,980 41,250 44,500 45,390 45,010 44,240 46,930 49,557 Thousands of persons 16 years of age and over 63,377 64,160 64,524 65246 65,785 67,087 68,517 68,877 69,486 70,157 71,489 72,359 72,675 73,839 75,109 76,401 77,892 79,565 80,990 82,972 84,889 86,355 88,847 91,203 93,670 95,453 97,826 100,665 103,882 106,559 108,544 110,315 111,872 113,226 115,241 117,167 119,540 121,602 113,899 114,314 114,397 114,822 115,310 115,521 115,645 115,404 115,556 115,720 115,884 116268 See next page for continuation of table. 60,087 62,194 62,636 63,410 62,251 64,234 65,764 66,019 64,883 66,418 67,639 67,646 68,763 69,768 71,323 73,034 75,017 76,590 78,173 80,140 80,796 81,340 83,966 86,838 88,515 87,524 90,420 93,673 97,679 100,421 100,907 102,042 101,194 102,510 106,702 108,856 111,303 114,177 104,883 105,511 105,659 106,058 106,949 107,300 107,127 106,879 107,198 107,339 107,684 107,910 59,350 60,621 61,286 62,208 62,017 62,138 63,015 63,643 65,023 66,552 66,929 67,639 68,369 69,628 70,459 70,614 71,833 73,091 74,455 75,770 77,347 78,737 80,734 82,771 84,382 87,034 89,429 91,949 93,775 96,158 99,009 102,251 104,962 106,940 108,670 110,204 111,550 113,544 115,461 117.834 119,865 112,213 112,630 112,711 113,129 113,620 113,831 113,947 113,692 113,836 114,015 114,185 114,570 57,038 58,343 57,651 58,918 59,961 60,250 61,179 60,109 62,170 63,799 64 071 63,036 64,630 65,778 65,746 66702 67762 69,305 71,088 72,895 74'372 75,920 77,902 78,678 79,367 82,153 85,064 86,794 85,946 88,752 92,017 96,048 98,824 99,303 100,397 99,526 100,834 105,005 107,150 109.597 112,440 103,197 103,827 103,973 104,365 105,159 105,610 105,429 105,167 105,478 105,634 105,985 106,212 7,090 7,629 7,650 7160 6,726 6,500 6,260 6 205 6,450 6,283 5,947 5,586 5,565 5,458 5,200 4,944 4,687 4,523 4,361 3,979 3,844 3,817 3,606 3,463 3,394 3,484 3,470 3,515 3,408 3,331 3,283 3,387 3,347 3,364 3,368 3,401 3,383 3,321 3,179 3,163 3,208 3,296 3,354 3,234 3,309 3,319 3,377 3,340 3,295 3,388 3,195 3,400 3,387 49,148 50,714 49,993 51,758 53,235 53,749 54,919 53,904 55,722 57,514 58,123 57,450 59,065 60,318 60,546 61,759 63,076 64,782 66,726 68,915 70,527 72,303 74,296 75,215 75,972 78,669 81,594 83,279 82,438 85,421 88,734 92,661 95,477 95,938 97,030 96,125 97,450 101,685 103,971 1060434 109,232 99,901 100,473 100,739 101,056 101,940 102.233 102,089 101,872 102,090 102,439 102,585 102,825 1,550 12,830 9,480 8,120 5,560 2,660 1,070 670 1,040 2,270 2,356 2,311 2,276 3,637 3,288 2,055 1,883 1,834 3,532 2,852 2,750 2,859 4,602 3,740 3,852 4,714 3,911 4,070 3,786 3,366 2,875 2,975 2,817 2,832 4,093 5,016 4,882 4,365 5,156 7,929 7,406 6,991 6:202 6,137 7,637 8,273 10,678 10,717 8,539 8,312 8,237 7,425 9,016 8,803 8,738 8,764 8,461 8,221 8,518 8,525 8,358 8,381 8,200 8,358 ........... ........... ........... 5.2 3.2 2.9 2.8 5.4 4.3 4.0 4.2 6.6 5.3 5.4 6.5 5.4 5.5 5.0 4.4 3.7 3-7 3-5 3.4 4.8 5.8 5.5 4.8 5.5 8.3 7.6 6.9 6.0 5.8 7.0 7.5 9.5 9.5 7.4 7.1 6.9 6.1 7.9 7-7 7.6 7.6 7.3 7.1 7.4 7.4 7.2 7.2 7.1 7.2 Percent 3.2 24.9 17.2 14.6 9.9 4.7 1.9 1.2 1.9 3.9 3.9 3.9 3.8 5.9 5.3 3.3 3.0 2.9 5.5 4.4 4.1 4.3 6.8 5.5 5.5 6.7 5.5 5.7 5.2 4.5 3.8 3.8 3.6 3.5 4.9 5.9 5.6 4.9 5.6 8.5 7.7 7.1 6.1 5.8 7.1 7.6 9.7 9.6 7.5 7.2 7.0 6.2 8.0 7.8 7.8 7.7 7.4 7.2 7-5 7-5 7-3 7.4 7.2 7.3 ............ ............ 55.7 56.0 57.2 58.7 58.6 57.2 55.8 56.8 58.3 58.8 58.9 59.2 59.2 59.0 58.9 58.8 59.3 60.0 59.6 59.5 59.3 59.4 59.3 58.8 58.7 58.7 58.9 59.2 59.6 59.6 60.1 60.4 60.2 60.4 60.8 61.3 61.2 61.6 62.3 63.2 63.7 63.8 63.9 64.0 64.0 64.4 64.8 65.3 65.6 63.9 64.1 64.1 64.3 64.5 64.6 64.6 64.4 64.4 64.4 64.5 64.6 ........... ........... .......... 47.6 50.4 54.5 57.6 57.9 56.1 53.6 54.5 56.0 56.6 55.4 56.1 57.3 57.3 57.1 55.5 56.7 57.5 57.1 55.4 56.0 56.1 55.4 55.5 55.4 55.7 56.2 56.9 57.3 57.5 58.0 57.4 56.6 57.0 57.8 57.8 56.1 56.8 57.9 59.3 59.9 59.2 59.0 57.8 57.9 59.5 60.1 60.7 61.5 58.8 59.1 59.1 59.3 59.7 59.9 59.8 59.6 59.7 59.7 59.8 59.9 C-9 . I | E g I I I T I . . .. I I I I I I I I TABLE B-32.-Population and the laborforce, 1929-88-Continued [emthly data seasonally adjusted, except as notedj Civilian labor force Unemploy- Civil- Civil. Civilian Resi force ment _ Employment ment rate ia eamn noninsti- dent, kId k g Un- Cvlforce em Year or month tutional Are mng raide Tota A em- All Cii-par mesth poplmua- resident Totm l cgl- plo y wok ian pp tion Armed Fre Total cl agri- ti wrk ci via- Forestoresoltra ment e2wrk- yatoo - forces tural cultura ~~~~~~ers ' r te lion raeI ratio' 1985: Jan............ Feb............ Mar ........... Apr............ May......... June. July........... Aug........... Sept.......... Oct............ Nov ........... Dec ........... 1986: Jan.6 Feb............ Mar........... Apr ............ Mlay ........... June.......... July........... Aug........... Sept.......... Oct............ Nov ........... Dec ........... 1987: Jan............ Feb............ Mar........... Ap............ a........... June.......... July........... Aug........... Sept.......... Oct............ Nov ........... Dec ........... 1988: Jan............ Feb............ Mar........... Apr ............ May........... June.......... July........... Aug........... Sept.......... Oct........... Nov ........... 177,384 177,516 177,667 177,799 177,944 178,096 178,263 178,405 178,572 178,770 178,940 179,112 179,670 179821 179,985 180,148 180,311 180,503 180,682 180,828 180,997 181,186 181,363 181,547 181,827 181,998 182,179 182,344 182,533 182,703 182,885 183,082 183,161 183,311 183 470 183,620 183,822 183,969 184,111 184,232 184,374 184,562 184,729 184,830 184,962 185,114 185,244 Thousands of persons 16 years of age and over 1,697 1,703 1,701 1,702 1,705 1,702 1,704 1,726 1,732 1,700 1,702 1,698 1,691 1,691 1,693 1,695 1,687 1,680 1,672 1,697 1,716 1,749 1,751 1,750 1,748 1,740 1,736 1,735 1,726 1,718 1,720 1,736 1,743 1,741 1,755 1,750 1,749 1,736 1,736 1,732 1,714 1,685 1,673 1,692 1,704 1,687 1,705 116,451 116,606 117,012 117,040 116,916 116,723 116,993 117,037 117,613 117,787 117,857 118,017 118,442 118,642 118,876 119,029 119,168 119,792 119,787 119,847 12M061 120,173 120,422 120,326 120,726 120,970 120,982 121,098 121,633 121,326 121,610 122.042 121,706 122,128 122,349 122,472 122,924 123,084 122,639 123055 122E692 123,157 123,351 123,723 123,628 123,699 124,277 107,993 108,276 108,691 1 108,644 108,612 108,309 108,513 108,851 109,367 109,488 109,702 10,9861 110,595 110,215 110,546 110,656 110,724 111,351 111I0 111,732 111,763 111,983 112,208 112,407 112,762 113,084 113,191 113,541 114,60 114018 114,359 114.786 114,615 114,951 115,250 115,494 115,878 116,145 115839 116,445 115909 116,703 116,732 116,872 117,032 117,208 117,681 114,760 114'903 115.311 115,338 115,211 115,021 115,289 115,311 115,881 116,087 116,155 116,319 116,751 116,951 117,183 117,334 117,481 118,112 118 115 118,150 118,345 118,424 118,671 118,576 118,978 119,230 119,246 119,363 119,907 119,608 119,890 120,06 119,963 120,387 120,594 120,722 121,175 121,348 120,903 121,323 120,978 121,472 121,684 122,031 121,924 122,012 122,572 106,296 106,573 106,990 106,942 106,907 106,607 106,809 107,125 107,635 107,788 108,000 108,163 108,904 108,524 108,853 108,961 109,037 109,671 109,837 110,035 110,047 110,194 110'457 110,657 111,014 111,344 111,455 111,806 112,334 112,300 112,639 113,050 112,872 113,210 113,504 113,744 114,129 114,409 114,103 114,713 114,195 115,018 115,059 115,180 115,328 115,521 115,976 3,331 3,325 3,260 3,319 3,238 3,147 3,134 3,141 3,059 3,059 3,073 3,147 3,307 3,097 3,213 3,168 3,099 3,176 3,127 3,106 3,164 3,142 3,233 3,153 3,174 3,225 3,237 3,250 3,269 3,192 3,212 3,143 31U 3,1849 3,249 3,172 3,215 3,293 3,228 3,204 3,228 3,035 3,085 3,046 3,151 3,169 3,266 3,276 102,965 103,248 103,730 103,623 103,669 103,460 103,675 103,984 104,576 104 729 104,927 105,016 105,597 105,427 105,640 105,793 105,938 106,495 106,710 106,929 106,883 107,052 107,224 107,504 107,840 108,119 108,218 108,556 109,065 109,108 109,427 109,907 109,688 109,961 110,332 110,529 110,836 111,182 110,899 111,485 111,160 111,933 112,014 112,029 112,158 112,255 112,700 8,464 8,330 8,321 8,396 8,304 8,414 8,480 8,186 8'246 8,299 8,155 8,156 7847 8,427 8,330 8,373 8,444 8,441 8,278 8,115 8,298 8,230 8,214 7,919 7,964 7,886 7,791 7,557 7,573 7,308 7,251 7,256 7,091 7,177 7,090 6,978 7,046 6,930 6,801 6,610 6,783 6,455 6,625 6,851 6,596 6 491 6,595 Ii 7.3 7.1 7.1 7.2 7.1 7.2 7.2 7.0 7.0 7.0 6.9 6.9 6.6 7.1 7.0 7.0 7.1 7.0 6.9 6.8 6.9 6.8 6.8 6.6 6.6 6.5 6.4 6.2 6.2 6.0 6.0 5.9 5.8 5.9 5.8 5.7 5.7 5.6 5.5 5.4 5.5 5.2 5.4 5.5 5.3 5.2 5.3 Percent 7.4 7.2 7.2 73 7.2 7.3 7.4 7.1 7.1 7.1 7.0 7.0 6.7 7.2 7.1 7.1 7.2 7.1 7.0 6.9 7.0 6.9 6.9 6.7 6.7 6.6 6.5 6.3 6.3 6.1 6.0 6.0 5.9 6.0 5.9 5.8 5.8 5.7 5.6 5.4 5.6 5.3 5.4 5.6 5.4 5.3 5.4 64.7 64.7 64.9 64.9 64.7 64.6 64.7 64.6 64.9 64.9 64.9 64.9 65.0 65.0 65.1 65.1 65.2 65.4 65.4 65.3 65.4 65.4 65.4 65.3 65.4 65.5 65.5 65.5 65.7 65.5 65.6 65.7 65.5 65.7 65.7 65.7 65.9 66.0 65.7 65.9 65.6 65.8 65.9 66.0 65.9 65.9 66.2 59.9 60.0 60.2 60.1 60.1 59.9 59.9 60.0 60.3 60.3 60.4 60.4 60.6 60.4 60.5 60.5 60.5 60.8 60.8 60.9 60.8 60.8 60.9 61.0 61.1 61.2 61.2 61.3 61.5 61.5 61.6 61.8 61.6 61.8 61.9 61.9 62.1 62.2 62.0 62.3 61.9 62.3 62.3 62.3 62.4 62.4 62.6 INtsaoal dutd I Not seasonally adjusted. 2 Unemployed as percent of labor force indchfng resident Armed Forces. 3 Unemployed as percent of civilian labor force. 4 Civilian labor force as percent of civiian noninstitutional population. ' Civilian employment as percent of civilian noninstitutional population. 6 Not strictly comparable with earlier data due to population adjustments as follows: Beginning 1953, introduction of 1950 census data added about 600,000 tu population and 350,000 to labor force, total employment, and agricultural employment. Beginning 1960, inclusion of Alaska and Hawaii added about 500,000 to population, 300,000 to labor force, and 240,000 to nonagricultural employment. Beginning 1962, introduction of 1960 census data reduced population by about 50,000 and labor force and employment by 200,000. Beginning 1972, introduction of 1970 census data added about 800,000 to civilian noninstitutional population and 333,000 to labor force and emplnyment. A subsequent adjustment based on 1970 census in March 1973 added 60,000 to labor force and to employment. Beginning 1978, changes in sampling and estimation procedures introduced into the household survey added about 250,000 to labor force and to employment. Unepoymnent levels and rates were not significantly affected. Beginning 1986, the introduction of revised population controls added about 400,000 to the civiian population and labor force and 350,000 to civilian employment. Unemployment levels and rates were not significantly affected. Note.-Labor force data in Tables B-32 through B41 are based on household interviews and relate to the calendar week including the 12th of the month. For definitions of terms, area samples used, historical comparability of the data, comparability with other series, etc., see "Employment and Earnings." Source: Department of Uabor, Bureau of Labor Statistics. C-10 . . . . . I I I TABLE B-33.-Citilian employment and unemployment by sex and age, 1947-88 [Thousands of persons 16 years ot age and over; monthly data seasonally adjusted) Civilian employment Unemployment 1 Males Females Males Females Year on month 20 20 20 20 Total Total 16-19 yaral otal 69 years Total 19 years Total 6-9 yeas To1- 16-19 years Toa Tota over years and years and years and years and over over over over 1947............. 1948 ....... 1949................. 1950.................... 1951 .................... 1952.................... 19531 .................. 1954.................... 1955.................... 1956.................... 1957.................... 1958.................... 1959.................... 19601 .................. 1961.................... 19621 .................. 1963.................... 1964.................... 1965.................... 1966.................... 1967.................... 1968.................... 1969.................... 1970.................... 1971.................... 19721 .................. 19731.................. 1974.................... 1975.................... 1976.................... 1977..................... 19781 ................... 1979..................... 1980.................... 1981.................... 1982.................... 1983.................... 1984.................... 1985.................... 1986 1................. 1987.................... 1987: Jan............. Feb............. Mar............ Apr............. M ay............ June........... July............ Aug............ Sept........... Oct............. Nov ............ Dec............ 1988: Jan............ Feb............. M ar............ Apr............. M ay............ June........... July ............ Aug ............ Sept........... Oct............. Nov ............ 57,038 58,343 57,651 58,918 59,961 60,250 61,179 60,109 62,170 63,799 64,071 63,036 64,630 65,778 65,746 66,702 67,762 69,305 71,088 72,895 74,372 75,920 77,902 78,678 79,367 82,153 85,064 86,794 85,846 88,752 92,017 96,048 98,824 99,303 100,397 99,526 100,834 105,005 107,150 109,597 112,440 111,014 111,344 111,455 111,806 112,334 112,300 112,639 113,050 112,872 113,210 113,504 113,744 114,129 114,409 114,103 114,713 114,195 115,018 115,059 115,180 115,328 115,521 115,976 40 995 41,725 40,925 41,578 41783 41,682 42,430 41,619 42,621 43 379 43,357 42,423 43,466 43,904 43,656 44,177 44,657 45,474 46,340 46,919 47,479 48,114 48,818 48,990 49,390 50,896 52,349 53,024 51,857 53,138 54,728 56,479 57,607 57,186 57,397 56,271 56,787 59,091 59,891 60,892 62,107 61,562 61,697 61,688 61,815 61,977 61,984 62,150 62,341 62,368 62,468 62,581 62,656 62,808 63,059 62,759 63,323 63,030 63,411 63,490 63,425 63,512 63,417 63,537 2,218 2,344 2124 2,186 2,156 2,107 2.136 1,985 2,095 2,164 2,115 2,012 2,198 2,361 2,315 2,362 2,406 2,587 2,918 3,253 3,186 3,255 3,430 3,409 3,478 3,765 4,039 4,103 3,839 3,947 4,174 4,336 4,300 4,085 3,815 3,379 3,300 3,322 3,328 3,323 3,381 3,342 3,373 3,308 3,299 3,304 3,352 3,367 3,516 3,401 3,431 3,417 3,471 3,521 3,434 3,352 3,440 3,439 3,614 3,537 3,591 3,489 3,428 3,556 38,776 39,382 38,803 39,394 39,626 39,578 40,296 39,634 40,526 41216 41,239 40,411 41,267 41,543 41,342 41,815 42,251 42,886 43,422 43,668 44,294 44,859 45,388 45,581 45,912 47,130 48,310 48,922 *48,018 49,190 50,555 52,143 53,308 53,101 53,582 52,891 53,487 55,769 56,562 57,569 58,726 58,220 58,324 58,380 58,516 58,673 58,632 58,783 58,825 58,967 59,037 59,164 59,185 59,287 59,625 59,407 59,883 59,590 59,797 59,954 59,834 60,024 59,989 59,981 16,045 16,617 16,723 17,340 18,181 18,568 18,749 18,490 19,551 20,419 20,714 20,613 21,164 21,874 22,090 22,525 23,105 23,831 24,748 25,976 26,893 27,807 29,084 29,688 29,976 31,257 32,715 33,769 33,989 35,615 37289 39,569 41,217 42,117 43,000 43,256 44,047 45,915 47,259 48,706 50,334 49,452 49,647 49,767 49,091 50,357 50,316 50,489 56 709 50,504 56 742 50 923 51,088 51,321 51,350 51,344 51,390 51,166 51,607 51,569 51,755 51,815 52,104 52,439 I See footnote 6, Table B-32. Note.-See Note, Table B-32. Source: Department of labor, Bureau of Labor Statistics. 1,691 1,682 1,588 1,517 1,611 1,612 1,584 1,490 1,547 1,654 1,663 1,570 1,640 1,768 1,793 1,833 1,849 1,929 2,118 2,468 2,496 2,526 2,687 2,735 2,730 2,980 3,231 3,345 3,263 3,389 3 514 3,734 3,783 3,625 3,411 3,170 3,043 3,122 3,105 3,149 3,260 3,162 3,162 3,185 3,230 3,329 3,228 3,283 3,401 3,253 3,262 3,289 3,338 3,344 3,345 3,212 3,220 3,206 3,438 3,370 3,288 3,364 3,333 3,286 14,354 14 936 15,137 15,824 16,570 16 958 17,164 17,000 18,002 18,767 19,052 19,043 19,524 20,105 20,296 20,693 21,257 21,903 22,630 23,510 24,397 25,281 26,397 26,952 27,246 28,276 29,484 30,424 30,726 32,226 33,775 35,836 37,434 38,492 39,590 40,086 41,004 42,793 44,154 45,556 47,074 46,290 46,485 46,582 46,761 47,028 47,088 47,206 47,308 47,251 47,480 47,634 47,750 47,977 48,005 48,132 48,170 47,960 40,169 46,199 48,466 46,452 48,771 49,153 2,311 2,276 3,637 3,288 2,055 1,883 1,834 3,532 2,852 2,750 2,859 4,602 3,740 3,852 4,714 3,911 4,070 3,786 3,366 2,875 2,975 2,817 2,832 4,093 5,016 4,882 4,365 5,156 7,929 7,406 6,991 6,202 6,137 7,637 8,273 10,678 10,717 8,539 8,312 8,237 7,425 7,964 7,886 7,791 7,557 7,573 7,308 7,251 7,256 7,091 7,177 7,090 6,978 7,046 6,938 6,801 6,610 6,783 6,455 6,625 6,851 6,596 6,491 6,595 1,692 1,559 2,572 2,239 1,221 1,185 1,202 2,344 1,854 1,711 1,841 3,098 2,420 2,486 2,997 2,423 2,472 2,205 1,914 1,551 1,508 1,419 1,403 2,238 2,789 2,659 2,275 2,714 4,442 4,036 3,667 3,142 3,120 4,267 4,S77 6,179 6,260 4,744 4,521 4,530 4,101 4,449 4,374 4,327 4,214 4,259 4,080 3,960 4,021 3,827 3,899 3,845 3,785 3,847 3,707 3,816 3,553 3,736 3,495 3,519 3,768 3,555 3,600 3,642 270 256 353 318 191 205 184 310 274 269 300 416 398 426 479 408 501 487 479 432 448 426 440 599 693 711 653 757 966 939 874 813 811 913 962 1,090 1,003 812 806 779 732 758 768 774 760 803 658 637 763 709 725 710 722 693 636 727 644 664 625 704 678 698 698 604 1,422 1,305 2219 1,922 1,029 980 1,019 2,035 1,580 1,442 1,541 2,681 2,022 2,060 2,518 2,016 1,971 1,718 1,435 1,120 1,060 993 963 1,638 2,097 1,948 1,624 1,957 3,476 3,098 2,794 2,328 2,308 3,353 3,615 5,089 5,257 3,932 3,715 3,751 3,369 3,691 3,606 3,553 3,454 3,456 3,422 3,323 3,258 3,118 3,174 3,135 3,063 3,154 3,071 3,089 2,909 3,072 2,870 2,815 3,090 2,857 2,902 3,038 619 717 1,065 1,049 834 698 632 1,188 998 1,039 1,018 1,564 1,320 1,366 1,717 1,488 1,598 1,581 1,452 1,324 1,468 1,397 1,429 1,855 2,227 2,222 2,089 2,441 3,486 3,369 3,324 3,061 3,018 3,370 3,696 4,499 4,457 3,794 3,791 3,707 3,324 3,515 3,512 3,464 3,343 3,314 3,228 3,291 3,235 3,264 3,278 3,245 3,193 3,200 3,231 2,985 3,057 3,047 2,960 3,106 3,083 3,041 2,890 2,954 144 153 223 195 145 140 *123 191 176 209 197 262 256 286 349 313 383 385 395 405 391 412 413 506 568 598 583 66S5 802 780 789 769 743 755 800 886 825 687 661 675 616 638 654 632 610 614 594 611 574 593 663 625 582 619 596 574 615 566 487 530 615 580 489 496 475 564 841 854 689 559 510 997 823 832 821 1,242 1,063 1,080 1,368 1,175 1,216 1,195 1,056 921 1,078 985 1,015 1,349 1,658 1,625 1,507 1,777 2,684 2,588 2,535 2,292 2,276 2,615 2,895 3,613 3,632 3,107 3,129 3,032 2,709 2,877 2,858 2,832 2,733 2,700 2,634 2,680 2,661 2,671 2,615 2,620 2,611 2,581 2,635 2,411 2,442 2,481 2,473 2.576 2,468 2,461 2,401 2,458 C-11 I I I TABLE B-4.--Cisn employment by demograpbic characteristic, 1954-88 [Thousands of pes 16 rs of age and over; montUl data seasonally adjusted] Wte Black and other Black Year or All I moeth ciila Fel . B totl Mah Fe- Bot BoatMahFe wokr oa aI me ee oa ae males se Ttl Males ses 60.109 53,957 37,846 16,111 3,078 6,152 3,773 2,379 62,170 55,833 38,719 17,114 3,225 6,341 3,904 2,437 63,799 57.269 39,368 17,901 3,389 6,534 4.013 2,521 64.071 57,465 39,349 18.116 3,374 6,604 4,006 2,598 63.036 56,613 38,591 18,022 3.216 6,423 3,833 2,590 64,630 58,006 39,494 18,512 3,475 6,623 3,971 2,652 65,778 58,850 39,755 19,095 3,700 6,928 4,149 2,779 65.746 58,913 39,588 19,325 3,693 6,833 4,068 2,765 66.702 59,698 40,016 19,682 3,774 7,003 4,160 2,843 67,762 60,622 40,428 20,194 3,851 7,140 4,229 2911 69,305 61,922 41,5 20,807 4,076 7383 4,359 3024 71,088 63,446 41,844 2162 4,562 7,643 4,496 3,147 72,895 65,021 42,331 22,690 5,176 7,877 4,588 3,289 74,372 66,361 42,833 23,28 5,114 8,011 4,646 3,65 75,928 67,750 43,411 24,9 5,195 8,169 4,702 3,467 77,902 69,518 44UO 2s,47 5,508 8,384 4,770 3,614 78,678 70,217 44,178 26,039 5,571 8,464 4,813 3,650 79,367 70,878 4455 263 5,670 8,488 4,796 3,692 82,153 73,310 45,944 27,426 6,173 8783 4952 3,832 85,064 75,708 47,005 286 6,623 9,356 5,265 4,092 6,794 7184 47, 29511 6 796 9,610 5,352 428 85,6 76,411 4697 2,714 6,7 9,435 5,161 4,275 88,752 78,853 47,775 31,878 6,724 9,899 5,363 4,536 92,017 81,700 49,150 32,550 7068 10,317 5,579 4,739 96,048 8,936 504 34,392 767 11112 5,6 5,177 98,24 87,5 51452 357 7,6 11565 6,196 5,409 99,303 87,715 51,27 36,537 7,021 11,8 6,059 5529 100,397 88,709 L5315 3794 6,588 11,688 6,03 56 99,526 87,903 5W;2117 37,615 5,984 11,624 5,983 5,I41 100,834 88,893 W58,61 38272 5,799 11,941 6,106 5,775 109,005 92,120 52,462 39, 5,836 12,885 6,629 6,256 107,150 93,736 53,046 40,880 5,768 13,414 6,84 6,69 9,597 95,0 5385 416 5,792 13,937 7,107 680 112,440 97,789 54,47 43,142 5,898 14,652 7,459 7,192 111,014 96,749 54273 42,47 5,840 14295 7,321 6,974 1113U 97,001 54,403 42,8 580 14,320 7,4 7,016 111,455 97,074 54,3 4251 5,813 14,392 7,353 7,039 111,806 97,33 54,403 4,5 5,6 14,467 7,406 7,059 112,334 97,29 54,i91 428 595 -14,475 7357 7,118 112,300 97,693 54,553 43145 5,842 14,582 7,410 7,172 112,639 97,917 54,651 43,6 54 14725 7,485 7,240 113,050 98,181 54,779 43,402 6,017 14,4 7,518 7,286 112,872 98,069 54801 4 5,857 14,7 7,559 7,219 113,210 98,317 54,95 43,42 5,915 14,46 7,601 7,45 113,584 98,492 54,976 43,516 5,917 15,17 7,613 7,404 113,74 98,779 55,111 43,668 6,021 15,008 7,582 7,426 114,129 99,044 55,181 43,863 6,095 15,076 7,649 7,426 114 409 99,474 55,510 4,964 6100 14884 7,549 7,335 114,103 9974 55,46 4,027 5,845 14,53 7,5 730 114,713 99,751 55,570 4,181 5,916 14,939 7,737 7,202 114195 99,297 55, 43977 ,879 14,818 7,654 7,164 115,018 99,932 55,686 4,266 6,250 15,017 7,701 7,316 115,059 99,725 55,684 4,040 6,081 15,319 7,796 7,523 115,180 99,01 6 44292 6,038 15,299 7,829 7,470 115,328 100,019 55,657 44,62 6,054 15,301 7,827 7 473 115,521 100,14 55628 44,516 5,977 15,431 7,807 7,624 115,976 100 578 55,747 4,831 6,066 15,377 7,7 7,600 396 ............ .. . ........... 418 ............ .. . ........... 430 ............. . . ............. ........... 365. ............. ............. ........... 3 5 ............... ............. ............. ........... 362 ............... ............. .. ........... 414 ............ . ........... 414 .............. ............. ....... ........... 4204 ......... ............. ......... ........... 4404 ..... ... ............. ............. . ........... 4 0 ............... ...... .......... ............. ..... ......... 4744 ...... .. .............. ........... 545 ........ ............. ............. ........... 568 .............. ............. ............. ........... 584 ..... ... ............. ............. .. .......... 609 . .... .... ............. ............. . ........... 574 . . ........ ............. ........ ........... 573 7 .0 .,6 ..... Si 647 8'128 4,527 3'601 570 652 8203 457 3,677 554 615 7.894 425 3,618 507 611 8,227 444 3,823 508 619 8,540 3,975 508 703 9,102 i76 4,307 571 727 935, 42 4,436 579 689 944 3 4 .798 4,515 547 637 9,35 4,794 '4,561 SOS 565 9,189 4,637 4,552 428 543 95375 4,753 4.622 416 607 10,119 5,124 4,995 474 666 10'0 5S270 5,231 532 681 1 5,428 5. W 536 742 1 5,661 5 680 10,995 5,553 5SU2 517 695 11,086 5'565 5,521 554 683 11,072 5,579 5,493 544 679 11 214 54,2 3,514 538 679 11'12 55'570 5.559 541 731 118,23 5614 5,624 570 736 11,381 5,689 5,692 580 822 11,513 5,750 5,763 676 795 11'421 5 '738 5,683 643 797 11,556 56753 5,5 630 805 11,589 5763 4,436 622 794 11,605 5,754 4,851 631 757 11,608 5,793 5,815 561 710 110504 5,721 5,231 537 712 11'420 5,676 5,744 526 735 11,482 5,661 5,659 564 744 11,452 5,553 5,670 589 787 11,489 5,788 5,701 610 820 11,774 5,935 5,939 632 785 11,764 5,893 5,871 626 800 11,771 5,907 5,865 627 801 11,829 5,909 5,919 622 793 11,850 5,875 5,975 626 Note-See footnote 6 ad Not, Tae B-32. Source: Department of Labor, Burea of Later Statsics. C-12 1954. 1955............ 1956 .---. 1957. 1958............ 1959..... 1960..... 1961 .-.. 1962. 1963......... 1964 . ------ 1965. 1966............ 1967 1......... 1969................ 1971..... 19712 . -------- 1973...... 1974 . ----- 19 4 ............ 1975.... 1976 ... . 1980...... 1978...... 1979 .... 19..... 1981 . 1982 .... 1983 ......... 1987 4.. 1987:Jan6..... Feb ia......... Mar..... ay...... June..... July...... Aug. Sept. Oct. Nov ....... Dec...._ 1988: Jan........ Febt.. ..... Mar..... June..... July........ Aug. Sept. Oct.... Nov........ TABLE B-36.-Labor force participation rate and employment/popudatiouo ratio, 1948-88 [Percent; monthly data seasonally adjustedi taboe force participtioe rate (rmploynrert/population ratio Civilian2 Civilianr Year or mon t otlh Ttl ~ F Beth Bak Ttl3Both Bac Total I e- sexe Whte and Blck t otal Mle Fe- seoeos ht o Black TtlMlsmates 16-19 Wht n1 Bak Tta ae males 16-19 oht nd lc yearsn te yearo te 1948 ......... 1949 ......... 1950 ......... 1951 ......... 1952 ......... 1953 ......... 1954 ......... 1955 ......... 1956 ......... 1957 ......... 1958 ......... 1959 ......... 1560 ......... 1561 ......... 1962 ......... 1963 ......... 1964 ......... 1965 ......... 1966 ......... 1967 ......... 1969 ......... 1970 ......... 1971 ......... 1972 ........ 1973 ......... 1974 ......... 1975 ......... 1976 ......... 1977 ......... 1979 ......... 1979 ......... 1990 ......... 1993 ......... 1994 ......... 1995 ......... 1997: Jan..... Feb ..... Mar. June..... July ..... Aug ..... Sept. Oct ..... Nov ..... Dec ..... 1998: Jan ..... Feb ..... Mar ..... Apr ..... May June. July ..... Aug ..... Sept. Oct ..... Novn..... 59.7 60.1 60.0 59.7 59.6 68.8 60.7 60.3 60.1 59.9 60.0 60.0 59.5 59.3 59.4 59.5 59.8 60.2 60.3 60.9 61.0 60.7 60.9 61.3 61.7 61.6 62.0 62.6 63.5 64.0 64.1 64.2 64.3 64.4 64.7 65.1 65.6 65.9 65.9 65.9 65.9 65.9 66.0 65.9 65.9 66.1 65.9 66.0 66.1 66.1 66.2 66.3 66.0 66.2 65.9 66.1 66.2 66.3 66.2 66.2 66.5 58.8 58.9 59.2 59.2 59.0 58.9 58.8 59.3 60.0 59.6 59.5 59.3 59.4 59.3 59.9 58.7 58.7 58.9 59.2 59.6 59.6 60.1 60.4 60.2 60.4 6098 61.3 61.2 61.6 62.3 63.2 6317 63.8 63.9 64.0 64.0 64.4 64.8 65.3 65.6 65.4 65.5 65.5 65.5 65.7 65.5 65.6 65.7 65.5 65.7 65.7 65.7 65.9 66.0 65.7 65.9 65.6 65.9 65.9 66.0 65.9 65.9 66.2 86.6 86.4 86.4 86.3 86.3 86.0 85.5 85.4 85.5 84.8 84.2 93.7 93. 82 9 92 .0 91.4 81.0 9074 80.4 90.4 79.9 79.7 79.1 78.9 7898 78.7 77.9 77.5 77.7 77.9 77.9 77.4 77.0 76.6 76.4 76.4 76.3 76.3 76.2 76.4 76.4 76.2 76.2 76.3 76.0 76.0 76.3 76.0 76.1 76.1 76.1 76.2 76.3 76.0 76.3 76.1 76.2 76.2 76.4 76.2 76.1 76.2 32.7 33.1 33.9 34.6 34.7 34.4 34.6 35.7 36.9 36.9 37.1 37.1 37.7 3811 37.9 39.3 38.7 39.3 40.3 41.1 41.6 42.7 43.3 43.4 43.9 44.7 45.7 46.3 47.3 48.4 50.0 50.9 51.5 52.1 52.6 52.9 53.6 54.5 55.3 56.0 55.5 55.7 55.7 55.9 56.1 55.9 56.1 56.2 56.0 56.2 56.3 56.4 56.'6 56.6 56.3 56.4 56.1 56.4 56.5 56.6 56.6 56.7 57.1 52.5 52.2 51.8 52.2 51.3 50.2 48.3 48.9 5109 49.6 47.4 46.7 47.5 46.9 46.1 45.2 44.5 45.7 4802 489.4 48.3 49.4 49.9 49.7 51.9 53.7 54.9 54.9 54.5 56.0 57.9 57.9 56.7 55.4 54.1 53.5 53.9 54.5 54.7 54.7 54.3 54.7 54.3 54.2 55.2 53.6 54.0 56.3 54.4 55.1 54.9 55.5 56.0 54.9 53.9 54.2 54.0 56.2 56.0 56.4 56.2 55.0 55.0 58.2 58.7 59.4 59.1 58.9 58.7 58.8 58.8 58.3 58.2 58.2 58.4 58.7 59.2 59.3 59.9 60.2 60.1 61.5 61.8 62.5 63.3 63.9 64.1 64.3 64.3 64.3 64.6 65.0 65.5 65.9 65.7 65.7 65.7 65.'7 65.9 65.7 65.7 65.9 65.7 65.9 65.9 66.0 66.1 66.3 66.0 66.2 65.9 66.2 66.1 66.3 66.3 66.2 66.5 64.2 64.9 64.4 64.8 64.3 64.5 64.1 63.2 63.0 63.1 62.9 63.0 62.8 62.2 62.1 6198 60.9 60.2 60.5 60.3 59.6 59.8 60.4 62.2 62.2 61.7 61.3 61.6 62.1 62.6 63.3 63.7 64.3 64.0 64.1 64.2 63.9 64.0 63.9 64.3 64.5 64.0 64.5 64.8 64.7 64.7 64.1 63.9 63.7 63.4 63.4 64.4 64.1 63.6 64.2 64.2 5 .9..... 6 .2..... 5 .8..... 5 .8..... 5 .0..... 5 .9..... 615.... 614.... 6 .0..... 6 .8..... 610.... 615.... 622.... 6 .9..... 6 .3..... 6 .8..... 6 .4..... 6 .9..... 6 .5..... 6 .0..... 6 .5..... 63.8 64.3 64.4 64.4 64.4 64.0 63.6 63.4 6335 62.9 6429 64.0 63.5 63.9 64.1 56.6 58.2 58.2 58.0 56.4 57.5 58.2 57.8 56.1 58.7 56.8 56.1 56.3 56.1 56.4 56.9 57.6 58.8 58.2 58.7 58.0 57.2 57.5 58.3 58.3 56.5 57.3 58.3 59.7 60.3 59.6 59.4 58.2 58.3 59.9 60.5 61.1 61.9 61.4 61.5 61.5 61.7 61.9 61.8 61.9 62.1 62.0 62.1 62.2 62.3 62.4 62.5 62.3 62.6 62.3 62.7 62.6 62.7 62.7 62.7 62.9 58.6 55.4 56.1 57.3 57.3 57.1 55.5 56.7 57.5 57.1 55.4 56.0 56.1 55.4 55.5 55.4 55.7 56.2 56.9 57.3 57.5 '58.0 57.4 56.6 57.0 57.8 57.8 56.1 56.8 57.9 59.3 59.9 59.2 59.0 57.8 57.9 59.5 60.1 60.7 61.5 61.1 61.2 61.2 61.3 61.5 61.5 61.6 61.8 61.6 61.8 61.9 61.9 62.1 62.2 62.0 62.3 61.9 62.3 62.3 62.3 62.4 62.4 62.6 83.5 81.3 82.8 84.0 83.9 83.6 81.0 81.8 82.3 81.3 78.5 79.3 78.9 77.6 77.7 77.1 77.3 77.5 77.9 78. 0 77.9 77.6 76.2 74.9 75.0 75.5 74.9 71.7 72.0 72.9 73.8 73.9 72.0 71.3 69.0 68.9 70.7 78.9 71.0 71.5 71.2 71.3 71.2 71.3 71.4 71.3 71.5 71.6 71.6 71.7 71.7 71.7 71.8 72.0 71.6 72.2 71.8 72.2 72.2 72.1 72.1 72.0 72.1 31.3 31.2 32.0 33.1 33.4 33.3 32.5 34.0 35.1 35.1 34.5 35.0 35.5 35.4 35.6 35.8 36.3 37.1 38.3 39.8 39.6 40.7 40.8 40.4 41.0 42.0 42.6 42.0 43.2 44.5 46.4 47.5 47.7 48.0 47.7 48.0 49.5 50.4 51.4 52.5 51.8 52.0 52.1 52.3 52.6 52.5 52.6 52.9 52.6 52.8 52.9 53.1 53.2 53.2 53.2 53.2 52.9 53.4 53.3 53.4 53.5 53.7 54.0 47.7 45.2 45.5 47.9 46.9 46.4 42.3 43.5 45.3 43.9 39.9 39.9 40.5 39.1 39.4 37.4 37.3 39.9 42.1 42.2 42.2 43.4 42.3 41.3 43.5 45.9 46.0 43.3 44.2 46.1 48.3 48.5 46.6 44.6 41.5 41.5 43.7 44.4 44.6 45.5 44.7 44.9 44.6 44.9 45.4 45.0 45.5 47.2 45.5 45.7 45.7 46.6 47.0 46.5 45.0 45.6 45.5 48.5 47.5 47.5 47.3 46.9 47.4 56.5 57.3 56.8 55.3 55.9 55.9 55.3 55.4 55.3 55.5 56.0 56.8 57.2 57.4 58.0 57.5 56.8 57.4 58.2 58.3 56.7 57.5 58.6 60.0 60.6 60.0 60.0 58.9 58.9 60.5 61.0 61.5 62.3 61.9 62.0 62.0 62.1 62.4 62.3 62.3 62.5 62.4 62.5 62.6 62.7 62.8 63.0 62.9 63.2 6298 63.2 63.0 63.1 63.1 63.2 63.4 58.7 57.5 57.9 5682 56.3 5682 57.0 57.8 58.4 58.2 58.0 58.1 56.8 54.9 54.1 55.0 54.3 51.4 52.0 52.5 54.7 55.2 53.6 52.6 5109 51.0 53.6 54.7 55.4 56.9 56.0 56.0 56.2 56.4 56.3 56.6 57.0 57.2 57.0 57.6 57.7 57.6 57.7 56.9 56.6 56.8 56.3 56.9 57.9 57.8 57.7 58.8 57.7 5.7.... 5.5.... 5.5.... 5101... 5.8.... 5.4.... 5.6.... 5.9.... 5.3.... 513.... 4.4.... 4.5.... 5.3.... 5.4.... 5.1.... 5.6.... 54.5 53.8 54.7 54.8 54.8 5523 55.9 56.4 56.5 56.6 55.4 55.7 9545 56.8 56.7 56.7 56.9 56.9 I Labur furce inctuding resident Armed Forces as percent of nuniustitutivnat populatiun including resident Armed Forces. 2 CiVilian tabor furce as percent uf civilian nuninstitutiunal pvpulation in gruup specified. 3Emoloymnent including resident Armed Furces as percent of noninstitutiunal populatiun including resident Armed Furces. 4Civilian emplvyment as percent vf civilian noninstitutional population in group specified. Note.-Data relate to persons 16 years vf age and over. Sen footnote 6 and Nute, Table 9-32. Source: Department of Labor, Bureau of Labor Statistics. C-13 ------- - --- - - TABLE B-37.-Cio'ilian laborforce participation rate by demographic characteriltic, 1954-88 [Percent;' monthly data seasonally adjusted] White Black and other or black ciAill Males Females Males Females Year or month ian 20 21) Toa 20 20 work- Total 16-19 yar Total 16-19 years Total 16-19 years Total 16-19 years es Total years and years and years and years and over ooer over over Black and other 1954 ....... 58.8 58.2 85.6 57.6 87.8 33.3 40.6 32.7 64.0 85.2 61.2 87.1 46.1 31.0 47.7 1955 ....... 59.3 58.7 85.4 58.6 87.5 34.5 40.7 34.0 64.2 85.1 60.8 87.8 46.1 32.7 47.5 1956 ....... 60.0 59.4 85.6 60.4 87.6 35.7 43.1 35.1 64.9 85.1 61.5 87.8 47.3 36.3 48.4 1957 ....... 59.6 59.1 84.8 59.2 86.9 35.7 42.2 35.2 64.4 84.2 58.8 87.0 47.1 33.2 48.6 1958 ....... 59.5 58.9 84.3 56.5 86.6 35.8 40.1 35.5 64.8 84.1 57.3 87.1 48.0 31.9 49.8 1959 ....... 59.3 58.7 83.8 55.9 86.3 36.0 39.6 35.6 64.3 83.4 55.5 86.7 47.7 28.2 49.8 1960 ....... 59.4 58.8 83.4 55.9 86.0 36.5 40.3 36.2 64.5 83.0 57.6 86.2 48.2 32.9 49.9 1961 ....... 59.3 58.8 83.0 54.5 85.7 36.9 40.6 36.6 64.1 82.2 55.8 85.5 48.3 32.8 50.1 1962 ....... 58.8 58.3 82.1 53.8 84.9 36.7 39.8 36.5 63.2 80.8 53.5 84.2 48.0 33.1 49.6 1963 ....... 58.7 58.2 81.5 53.1 84A 37.2 38.7 37.0 63.0 80.2 51.5 83.9 48.1 32.6 49.9 1964 ....... 58.7 58.2 81.1 52.7 84.2 37.5 37.8 37.5 63.1 80.1 49.9 84.1 48.6 31.7 50.7 1965 ....... 58.9 58.4 80.8 54.1 83.9 38.1 39.2 38.0 62.9 79.6 51.3 83.7 48.6 29.5 51.1 1966 ....... 59.2 58.7 80.6 55.9 83.6 39.2 42.6 38.8 63.0 79.0 51A 83.3 49.4 33.5 51.6 1967 ....... 59.6 59.2 80.6 56.3 83.5 40.1 42.5 39.8 62.8 78.5 51.1 82.9 49.5 35.2 51.6 1968 ....... 59.6 59.3 80.4 55.9 83.2 40.7 43.0 40.4 62.2 77.7 49.7 82.2 49.3 34.8 51.4 1969 ....... 60.1 59.9 80.2 56.8 83.0 41.8 44.6 41.5 62.1 76.9 49.6 81A 49.8 34.6 52.0 1970 ....... 60.4 60.2 80.0 57.5 82.8 42.6 45.6 42.2 61.8 76.5 47.4 81.4 49.5 34.1 51.8 1971 ....... 60.2 60.1 79.6 57.9 82.3 42.6 45.4 42.3 60.9 74.9 44.7 80.0 49.2 31.2 51.8 1972 ....... 60 60A.4 79.6 60.1 82.0 43.2 48.1 42.7 60.2 73.9 40.0 78.6 48.8 32.3 51.2 wBck 1972 - 60.4 60.4 79.6 60.1 82.0 43.2 48.1 42.7 59.9 73.6 46.3 78.5 48.7 32.2 51.2 1973 - 60.8 60.8 79A 62.0 81.6 44.1 50.1 43.5 60.2 73.4 45.7 78.4 49.3 34.2 51.6 1974 6 61.3 614 79.4 62.9 81A 45.2 51.7 44.4 59.8 72.9 46.7 77.6 49.0 33.4 51.4 1975 61.2 61.5 78.7 61.9 80.7 45.9 51.5 45.3 58.8 70.9 42.6 76.0 48.8 34.2 51.1 1976 61.6 61.8 78.4 62.3 80.3 46.9 52.8 46.2 59.0 70.0 41.3 75.4 49.8 32.9 52.5 1977 - 62.3 62.5 78.5 64.0 80.2 48.0 54.5 47.3 59.8 70.6 43.2 75.6 50.8 32.9 53.6 1978 63.2 63.3 78.6 65.0 80.1 49.4 56.7 48.7 61.5 71.5 44.9 76.2 53.1 37.3 55.5 1979 63.7 63.9 78.6 64.8 80.1 50.5 57A 49.8 61.4 71.3 43.6 76.3 53.1 36.8 55.4 1980 63.8 64.1 78.2 63.7 79.8 51.2 56.2 50.6 61.0 70.3 43.2 75.1 53.1 34.9 55.6 1981 63.9 64.3 77.9 62A 79.5 51.9 55.4 51.5 60.8 70.0 41.6 74.5 53.5 34.0 56.0 1982 - 64.0 64.3 77.4 60.0 79.2 52A 55.0 52.2 61.0 70.1 39.8 74.7 53.7 33.5 56.2 1983 ... 64.0 643 77.1 59.4 78.9 52.7 54.5 52.5 61.5 70.6 39.9 75.2 54.2 33.0 56.8 1984 64.4 64.6 77.1 59.0 78.7 53.3 55.4 53.1 62.2 70.8 41.7 74.8 55.2 35.0 57.6 1985 64.8 65.0 77.0 59.7 78.5 54.1 55.2 54.0 62.9 70.8 44.6 74A 56.5 37.9 58.6 1986 65.3 65.5 76.9 59.3 78.5 55.0 56.3 54.9 63.3 71.2 43.7 74.8 56.9 39.1 58.9 1987 65.6 65.8 76.8 59.0 78.4 55.7 56.5 55.6 63.8 71.1 43.6 74.7 58.0 39.6 60.0 1987: Jan ... 65A 65.7 77.0 59.3 78.6 55.2 56.3 55.2 63.4 71.3 43.7 74.9 57.1 35.7 59.4 Feb ... 65.5 65.7 77.1 60.3 78.5 55.3 55.9 55.3 63.8 71.2 43.0 74.9 57.8 40.2 59.7 Mar ... 65.5 65.7 76.9 59.0 78.4 55A 56.0 55A 63.5 70.9 41.5 74.8 57.5 38.7 59.5 65.5 65.7 76.8 58.5 78.4 55.5 56.5 55.5 63.0 70.7 42.1 74A 56.8 37.2 58.9 . 65.7 65.9 77.0 59.3 78.5 55.8 57.8 55.7 63.5 71.1 41.7 75.0 57.2 38.4 59.3 June ... 65.5 65.7 76.8 57.6 78.4 55.6 55.8 55.6 63A 70.5 40.3 74.5 57.6 38.8 59.6 July ... .. 65.6 65.7 76.6 57.1 78.3 55.7 56.7 55.7 64.0 71.2 42.2 75.1 58.1 37.4 60.4 Aug ... 65.7 65.9 76.8 59.9 78.2 55.9 57.1 55.8 64.5 71.8 48.4 74.9 58.5 41.5 60.3 Sept ... 65.5 65.7 76.7 58.6 78.2 55.7 55.7 55.7 63.8 70.9 43.3 74.5 58.0 42.3 59.7 Oct ... 65.7 65.9 76.9 59.3 78.4 55.8 56.5 55.7 64.3 70.9 44.5 74.3 59.0 43.1 60.7 Nou . . 65.7 65.9 76.8 58.7 78.3 55.9 56.7 55.8 64.4 71.1 45.8 74.5 58.9 40.8 60.9 Dec. 65.7 66.0 76.8 60.1 78.2 56.0 57.0 55.9 64.4 71.0 45.6 74.3 59.1 41.8 61.0 1988: Jan ....... 65.9 66.1 76.9 61.0 78.3 56.2 58.1 56.1 64.4 71.3 42.7 75.0 58.7 36.9 61.1 Feb ....... 66.0 66.3 77.0 59A 78.5 56.4 57.8 56.3 64.0 71.5 40.1 75.6 58.0 39.9 59.9 Mar ....... 65.7 66.0 76.8 59.4 78.2 56.1 55.0 56.2 63.6 70.7 37.7 75.0 57.8 38.9 59.9 65.9 66.2 76.9 59.2 78.5 56.3 56.7 56.3 63.4 71.2 40.1 75.3 57.1 35.4 59.4 65.6 65.9 76.7 58.2 78.3 56.0 55.7 56.1 63.3 71.3 46.4 74.5 56.8 36.6 59.0 June ....... 65.8 66.2 76.9 60.8 78.2 56.4 58.9 56.2 62.8 70.4 44.0 73.8 56.6 34.2 59.0 July ....... 65.9 66.1 76.9 60.3 78.3 56.2 57.4 56.1 64.2 70.5 45.7 73.8 59.0 38.3 61.2 Aug ....... 66.0 66.3 77.0 61.2 78.4 56.5 57.2 56.4 64.0 71.3 44.7 74.7 58.0 40.2 59.9 Sept ....... 65.9 66.3 76.9 60.5 78.3 56.5 58.5 56.4 63.5 70.8 44.3 74.2 57.6 40.2 59.5 Oct ....... 65.9 66.2 76.8 59.6 78.3 56.5 57.0 56.4 63.9 71.4 46.6 74.6 57.9 35.6 60.3 Nov. 66.2 66.5 76.9 60.5 78.3 56.9 56.3 56.9 64.1 71.0 46.7 74.2 58.5 37.2 60.8 Civilian labor force as percent of civilian noninstitutional population in group specified. Note.-Data relate to persons 16 years of age and over. See footnote 6 and Note, Table 8-32. Source: Department of Labor, Sureau of Labor Statistics. C-14 TABLE B-38.-Civilian employment/population ratio by demograpbic cbaracteristic, 1954-88 [Percent;' monthly data seasonally adjusted] White Black and other or black cA- Males Females Males Females Year or month ian 20 | Total 2 20 wr- Total 161 yas Total 1 19 years Total 1 19 Years Total 16-19 years ers, Ttl years and years and years and years and 00er 00er 00ff 00er 1954................... 1955................... 1956................... 1957................... 1958................... 1959................... 1960................... 1961................... 1962................... 1963................... 1964................... 1965................... 1966................... 1967................... 1968.................. 1969................... 1970................. 1971................... 1972.................. 1972.................. 1973................... 1974.................. 1975 . 1976................... 1977................... 1978................... 1979................... 1980................... 1981................... 1982 . . 1983................... 1984................... 1985................... 1986 ................... 1987................. 1987: Jan ........... Feb........... mar.......... 23ri........... ........... June ......... July........... Aug .......... Sept ......... Oct........... NW ........... Dec.......... 1988: Jan.......... Feb..... Mar......... Ariw.......... iu ........ July.......... Aug ....... Sept ........ Oct.......... Nov.......... 55.5 56.7 57.5 57.1 55.4 56.0 56.1 55.4 55.5 55.4 55.7 56.2 56.9 57.3 57.5 58.0 57.4 56.6 57.0 57.0 57.8 57.8 56.1 56.8 57.9 59.3 59.9 59.2 59.0 57.8 57.9 59.5 60.1 60.7 61.5 61.1 61.2 61.2 61.3 61.5 61.5 61.6 61.8 61.6 61.8 61.9 61.9 62.1 62.2 62.0 62.3 61.9 62.3 62.3 62.3 62.4 62.4 62.6 55.2 56.5 57.3 56.8 55.3 55.9 55.9 55.3 55.4 55.3 55.5 56.0 56.8 57.2 57.4 58.0 57.5 56.8 57.4 57A 58.2 58.3 58.7 57.5 58.6 60.0 60.6 60.0 60.0 58.8 58.9 60.5 61.0 61.5 62.3 61.9 62.0 62.0 62.1 62.4 62.3 62.3 62.5 62.4 62.5 62.6 62.7 62.8 63.0 62.9 63.2 62.8 63.2 630 63.1 63.1 63.2 63.4 81.5 82.2 82.7 81.8 79.2 79.9 79.4 78.2 78.4 77.7 77.8 77.9 78.3 78.4 78.3 78.2 76.8 75.7 76.0 76.0 76.5 75.9 73.0 73.4 74.1 75.0 75.1 73.4 72.8 70.6 70.4 72.1 72.3 72.3 72.7 72.5 72.6 72.4 72.5 72.7 72.6 72.6 72.8 72.7 72.8 72.9 73.0 73.0 73.4 73.0 73A 73.0 73.4 73.4 73.2 73.3 73.2 73.3 49.9 52.0 54.1 52.4 47.6 48.1 48.1 45.9 46A. 44.7 45.0 47.11 501 50.2 50.3 51.1 49.6 49.2 51.5 51.5 54-3 54.4 50.6 51.5 54-4 56.3 55.7 53.4 51.3 47.0 47A4 49.1 49.9 49.6 49.9 49.7 50.7 49.1 48.9 49.2 49.1 49.4 50.8 49.8 50.3 50.0 51.1 52.2 52.2 50.0 50.6 50.2 53.0 51.5 52.7 51.4 50.7 53.2 84.0 84.7 85.0 84.1 81.8 82.8 82.4 81A 81.5 81.1 813 81_5 81.7 81.7 81.6 81.4 80.1 79.0 79.0 79.0 79.2 78.6 75.7 76.0 76.5 77.2 77-3 75.6 75.1 73.0 72.6 74.3 74.3 74.3 74.7 74.5 74.5 74-5 74.5 74.7 74.6 74.7 74.7 74.7 74.8 74.9 74.9 74.8 75.2 75.0 75.4 75.0 75.1 75.2 75.0 75.1 75.1 75.0 31.4 33.0 34.2 34.2 33.6 34.0 34.6 34.5 34.7 35.0 35.5 36.2 37.5 38.3 38.9 40.1 40.3 39.9 40.7 40.7 41.8 42.4 42.0 43.2 44.5 46.3 47.5 47.8 48.3 48.1 48.5 49.8 50.7 51.7 52.8 52.1 52.3 52.4 52.6 52.9 52.8 52.9 53.0 52.8 53.0 53.1 53.2 53A 53.15 53.6 53.7 53.5 53.18 53.5 53.18 53.18 54.0 54.3 36.4 37.0 38.9 38.2 35.0 34.8 35.1 34.6 34.8 32.9 32.2 33.7 37.5 37.7 37.8 39-5 39.5 38.6 41.3 41.3 43.6 44-3 42.5 44.2 45.9 48.5 49.4 47.9 46.2 44.6 44.5 47.0 471. 47.9 49.0 48.4 48.0 48.3 49.0 50.1 48.6 49.3 49.8 48.2 48.7 49.2 50.0 50.2 50.5 48.2 48.9 48.8 52.4 51.0 49.3 51.1 50.8 50.0 31.1 32.7 33.8 33.9 33.5 34.0 34.5 34.5 34.7 35.2 35.8 36.5 37.5 38.3 39.1 40.1 40.4 40.1 40.6 40.6 41.6 42.2 41.9 43.1 44.4 46.1 47.3 47.8 48.5 48.4 48.9 50.0 51.0 52.0 53.1 52.4 52.6 52.7 52.9 53.1 53.1 53.2 53.3 53.2 53.3 53-4 53.5 53.7 53.8 54.0 54.1 53.8 53.9 53.7 54.1 54.0 54.2 54.6 58.0 58.7 59.5 59.3 56.7 57.5 57.9 56.2 56.3 56.2 57.0 57.8 58A 58.2 58.0 58.1 56.8 54.9 54.1 53.7 54.5 53.5 50.1 50.8 514 53.6 53.8 52-3 51.3 49.4 49.5 52.3 514 54.1 55.6 54.5 54.8 54.7 54.8 54.8 55.2 55.9 56.4 55.9 58.5 58.6 56.6 56.5 55.9 55.4 55.7 55.5 55.5 56.8 56.7 56.7 56.9 56.9 76.5 77.6 78.4 77.2 72.5 73.8 74.1 71.7 72.0 71.8 72.9 7317 74. 73.8 73.3 72.8 70.9 68.1 67.3 66.8 67.5 65.8 60.6 60.6 61.4 63.3 63.4 60.4 59.1 56.0 56-3 59.2 60.0 60.6 62.0 61A 61.4 61.4 61.6 61.1 61.5 62.2 62.9 62.6 62.7 62.7 62.5 62.9 62.0 61A 62.9 62.4 62.3 62.7 63.3 63.4 63.3 62.9 I Civilin employment as percent of civilian noninstitutional population in group specified .ote.-.Dta relate to persoes 16 years of age and over. See footnote 6 and Note, Table B-32. Source: Department of Labor, Bureau of Labor Statistics. Black and other 52.4 79.2 41.9 52.7 80.4 42.2 52.2 81.3 43.0 48.0 80.5 43.7 42.0 76.0 42.8 41.4 77.6 43.2 43.8 77.9 43.6 41.0 75.5 42.6 41.7 75.7 42.7 37.4 76.2 42.7 37.8 77.7 43.4 39.4 78.7 44.1 40.5 79.2 45.1 38.8 79.4 45.0 38.7 78.9 45.2 39.0 78.4 45.9 35.5 76.8 44.9 31.8 74.2 43.9 32.4 73.2 43.3 Back 31.6 73.0 43.0 32.8 73.7 43.8 31.4 71.9 43.5 26.3 66.5 41.6 25.8 66.8 42.8 26.4 67.5 43.3 28.5 69.1 45.8 28.7 69.1 46.0 27.0 65.8 45.7 24.6 64.5 45.1 20.3 61.4 44.2 20.4 61.6 44.1 23.9 64.1 46.7 26.3 64.6 48.1 26.5 65.1 48.8 28.5 66.4 50.3 27.7 65.8 48.9 26.7 66.0 49.5 26.5 66.1 49.2 26.2 66.3 49.3 25.8 65.8 49.6 27.7 66.0 50.1 28.6 66.7 50.7 32.1 66.9 51.2 29.6 67.0 50.5 30.1 67.0 51.5 31.1 66.9 51.6 30.4 66.8 51.7 27.7 67.5 51.4 23.3 67.1 51.0 23.0 66.4 50.6 29.1 67.3 49.8 31.0 66.5 49.8 30.6 66.5 50.0 31.8 66.8 52.0 30.3 67.6 51.4 30.3 67.7 51.3 30.9 67.5 51.7 31.6 66.9 52.1 24.7 43.7 26.4 43.9 28.0 44.7 26.5 45.5 22.8 45.0 20.3 45.7 24.8 45.8 23.2 44.8 23.11 44.9 21.3 45.2 21.8 46.1 20.2 47.3 23.1 48.2 24.8 47.9 24.7 48.2 25.1 48.9 22.4 48.2 20.2 47.3 19.9 46.7 19.2 46.5 22.0 47.2 20.9 46.9 20.2 44.9 19.2 46.4 18.5 47.0 22.1 49.3 22.4 49.3 21.0 49.1 19.7 48.5 17.7 47.5 17.0 47.4 20.1 49.8 23.11 50.9 23.8 51.6 25.8 53.0 20.6 51.9 24.9 52.2 24.0 51.9 23.7 52.1 24.3 52.4 25.0 52.9 25.0 53.5 30.2 53.5 29.6 52.7 27.9 54.0 26.2 54.3 27.9 54.3 24.0 54.3 26.1 53.7 25.3 53.3 22.8 52.7 23.2 52.7 25.3 52.7 26.1 54.8 27.1 54.0 27.2 53.8 26.2 54.4 25.9 54.9 C-15 _ . . . . TABLE B-43.-Employees on nonagricultural payrolls, by major industry, 1946-88 [Thousands of persons; monthly data seasonally adjusted) Goods-producing industries Year or month Total Manufacturing Total Mining struction Total Durable Nondura- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - 4- _ _ _ _ _ Total g oods ble g o o d s 1946 .... ..................................................................................... 4 1,652 17,248 862 1,683 14, 703 7,742 6,962 1947 .... . .43,857 18,509 955 2,009 15,545 8,385 7,159 1948 .... ..........................................................44,866 .....................t 18774 994 2,198 15,582 8,326 7,256 1949 --43,754 17,565 930 2,194 14,441 7,489 6,953 1950 . . .4 14...................................................................................... 45,197 18,506 901 2364 15241 8094 7,147 1951 . . .47,819 19,959 929 2,637 16,393 9,089 7,304 1952 .. - -48,793 20,198 898 2,668 16,632 9,349 7,284 1953 . ........................................................................................ 50,202 21,074 866 2,659 17,549 10,110 7,438 1954 - -48,990 19,751 791 2,646 16,314 9,129 7,185 1955 ......................................................................................... 50,641 20,513 792 2,839 16,882 9,541 7,341 1956 --52,369 21,104 822 3,039 17,243 9,833 7,411 1957 ......................................................................................... 52,853 20,964 828 2,962 17,174 9,855 7,321 1958 0 -51,324 19,513 751 2,817 15,945 8,829 7,116 1959 --53,268 20,411 732 3,004 16,675 9,373 7,303 1960 6 -54,189 20,434 712 2,926 16,796 9,459 7,337 91 961 -53,999 19,857 672 2,859 16,326 9,070 7,256 1962 --55,549 20,451 650 2,948 16,853 9,480 7,373 1963 --56,653 20,640 635 3,010 16,995 9,616 7,380 1964 --58,283 21,005 634 3,097 17,274 9,816 7,458 1965 - -60,765 21,926 632 3,232 18,062 10,405 7,656 1966 --63,901 23,158 627 3,317 19,214 11,282 7,930 1967 --65,803 23,308 613 3,248 19,447 11,439 8,007 1968 --67,897 23,737 606 3,350 19,781 11,626 8,155 1969 ............ 70,384 24,361 619 3,575 20,167 11,895 8,272 1970 --70,880 23,578 623 3,588 19,367 11,208 8,158 1971 9771,214 22,935 609 3,704 18,623 10,636 7,987 1972 -- ................. 73,675 23,668 628 3,889 19,151 11,049 8,102 1973 --76,790 24,893 642 4,097 20,154 11,891 8,262 1974 --78,265 24,794 697 4 020 20,077 11,925 8,152 1975 --76,945 22,600 752 3,525 18,323 10,688 7,635 1976 -- ................. 79,382 23,352 779 3,576 18,997 11,077 7,920 1977 ................. 82,471 24,346 813 3,851 19,682 11,597 8,086 1978 --86,697 25,585 851 4,229 20,505 12,274 8,231 1979 --89,823 26,461 958 4,463 21,040 12,760 8,280 1980 - -90,406 25,658 1,027 4,346 20,285 12,187 8,098 1981 9891,156 25,497 1,139 4,188 20,170 12,109 8,061 1982 --89,566 23,813 1,128 3,905 18,781 11,039 7,741 1983 - -90,200 23,334 952 3,948 18,434 10,732 7,702 1984 - -94,496 24,727 966 4,383 19,378 11,505 7,873 1985 - -97,519 24,859 927 4,673 19,260 11,490 7,770 1986 - -99,525 24,558 777 4,816 18,965 11,230 7,734 1987 ................................. 102,310 24,784 721 4,998 19,065 11,218 7,847 1987: Jann .100,795 24,501 704 4,927 18,870 11,114 7,756 Feb - -101,016 24,533 703 4,928 18,902 11,138 7,764 Mar - -101,260 24,536 705 4,918 18,913 11,135 7,778 Apr - -101,615 24,596 711 4,943 18,942 11,146 7,796 May - -101,829 24,653 716 4,967 18,970 11,159 7,811 June - -102,078 24,684 719 4,983 18,982 11,166 7,816 July - -102,430 24,788 722 4,997 19,069 11,190 7,879 Aug - -102,672 24,851 728 5,012 19,111 11,246 7,865 Sept - -102,906 24,902 734 5,012 19,156 11,269 7,887 Oct -- 103,371 25,025 740 5,060 19,225 11,315 7,910 No v n -103,678 25,123 736 5,090 19,297 11,355 7,942 Dec - -104,001 25,201 735 5,118 19,348 11,390 7,958 1988: Jann .104,262 25,180 728 5,083 19,369 11,393 7,976 Feb - -104,729 25,271 731 5,150 19,390 11,404 7,986 Mar - -105,020 25,330 733 5,192 19,405 11,411 7,994 Apr - -105,281 25,435 737 5,238 19,460 11,459 8,001 May - -105,489 25,466 739 5,237 19,490 11,477 8,013 June - -106,057 25,592 740 5,308 19,544 11l515 8,029 July ....... ........................... 106,271 25,663 740 5,330 19,593 11,566 8,027 Aug ....... ........................... 106,425 25,639 739 5,340 19,560 11,547 8,013 Sept .................................. 106,737 25,648 734 5,365 19,549 11,537 8,012 Oct .................................. 106,975 25,741 729 5,364 19,648 11,595 8,053 Nov P .................................. 107,438 25,860 722 5,419 19,719 11,642 8,077 See next page for continuation of table. C-16 TABLE B-43.-Employees ii vwonagricultural payrolfr, by major indtstry, 1946-88-Continued [Thousands ot persons; monthly data seasonally adjustedl Service-producing industries Year or monthTrans- T Finance, Government Year or month I portation IWhole. Retail inour- Total and sale trade ance, Serices State public trade t and real Total Federal and o tilities { I___ ___ estate Ilocal 1946 .................... 24,404 4,061 2,291 6,084 1,675 4,697 5,595 2,254 3,341 1947 .................... 25,348 4.166 2,471 6.485 1.728 5,025 5.474 1,892 3,582 1948 .................... 26,092 4,189 2,605 6'667 1,800 5,181 5,650 1.863 3,787 1949 .................... 26.189 4.001 2.602 6.662 1.828 5.240 5.856 1.908 3.948 1950 .................... 26.691 4.034 2.635 6.751 1.888 5.357 6.026 1,928 4,098 1951 ...... .............. 27,860 4'226 2'727 7'015 1'956 5,547 6.389 2.302 4'087 1952 .................... 28.595 4.248 2.812 7.192 2.035 5.699 6.609 2.420 4.188 1953 .................... 29,128 4,290 2,854 7,393 2,111 5,835 6,645 2.305 4,340 1954 .................... 29,239 4,084 2,867 7,368 2,200 5,969 6,751 2.188 4,563 1955 ................... 30,128 4,141 2,926 7,610 2,298 6,240 6,914 2,187 4,727 1956 .................... 31,266 4,244 3,018 7,840 2,389 6,497 7,278 2,209 5,069 1957 .................... 31,889 4,241 3.028 7,858 2,438 6,708 7,616 2,217 5,399 1958 .................... 31,811 3,976 2,980 7,770 2,481 6,765 7,839 2,191 5,648 1959 .................... 32,857 4,011 3,082 8,045 2,549 7,087 8,083 2.233 5,850 1960 .................... 33,755 4,004 3,143 8,248 2,629 7,378 8,353 2,270 6,083 1961 ................... 34,142 3,903 3,133 8,204 2,688 7,620 8,594 2,279 6,315 1962 .................... 35,098 3,906 3,198 8,368 2,754 7,982 8,890 2,340 6,550 1963 .................... 36,013 3,903 3,248 8'530 2,830 8,277 9,225 2,358 6,868 1964 ................... 37,278 3,951 3,337 8,823 2,911 8,660 9,596 2,348 7,248 1965 .................... 38,839 4,036 3,466 9,250 2,977 9,036 10,074 2,378 7,696 1966 ................... 40,743 4,158 3,597 9,648 3,058 9,498 10,784 2,564 8,220 1967 .................... 42,495 4,268 3,689 9,917 3,185 10,045 11,391 2,719 8,672 1968 ................... 44,160 4,318 3,779 10,320 3,337 10,567 11,839 2,737 9,102 1969 .................... 46,023 4,442 3,907 10,798 3,512 11,169 12,195 2,758 9,437 1970 .................... 47,302 4,515 3,993 11,047 3,645 11,548 12,554 2,731 9,823 1971 .................... 48,278 4,476 4,001 11,351 3,772 11,797 12,881 2,696 10,185. 1972 ................... 50,007 4,541 4,113 11,836 3,908 12,276 13,334 2,684 10,649 1973 .................... 51,897 4,656 4,277 12,329 4,046 12,857 13,732 2,663 11,068 1974 .................... 53,471 4,725 4,433 12,554 4,148 13,441 14,170 2,724 11,446 1975 .................... 54,345 4,542 4,415 12,645 4,165 13,892 14,686 2,748 11,937 1976 ................... 56,030 4,582 4,546 13,209 4, 271 14,551 14,871 2,733 12,138 1977 .................... 58,125 4,713 4,708 13,808 4,467 15,303 15,127 2,727 12,399 1978 .................... 61,113 4,923 4,969 14,573 4,724 16,252 15,672 2,753 12,919 1979 .................... 63,363 5,136 5204 14,989 4,975 17,112 15,947 2,773 13,174 1980 ...... 64,748 5,146 5,275 15,035 5,160 17,890 16,241 2,866 13,375 1981 .................... 65,659 5,165 5,358 15,189 5,298 18,619 16,031 2,772 13,259 1982 .................... 65,753 5,082 5,278 15,179 5 341 19,036 15,837 2,739 13,098 1983 .................... 66,866 4,954 5,268 15,613 5,468 19,694 15,869 2,774 13,096 194 .................... 69,769 5,159 5,555 16,545 5,689 20,797 16,024 2,807 13,216 1985 .................... 72,660 5,238 5,717 17,356 5,955 22,000 16,394 2,875 13,519 1986 .................... 74,967 5,255 5,753 17,930 6,283 23,053 16,693 2,899 13,794 1987 .................... 77,525 5,385 5,872 18,509 6,549 24,196 17,015 2,943 14,072 1987: Jan ....... ............. 76,294 5,304 5,778 18,210 6,445 23,668 16,889 2,909 13,980 Feb ................... 76,483 5,316 5,797 18,279 6,466 23,743 16,882 2,914 13,968 Mar .................... 76,724 5,331 5,807 18,327 6,491 23,858 16,910 2,923 13,987 Ar ....... ............. 77,019 5,354 5,829 18,394 6,518 23,962 16,962 2,930 14,032 lay ........ .............. 77,176 5,356 5,841 18,417 6,539 24,053 16,970 2,936 14,034 - June . ................ 77,394 5,363 5,860 18,481 6,553 24,153 16,984 2,939 14,045 July .77,642 5,373 5,874 18,543 6,570 24,273 17,009 2,941 14,068 Aug .77,821 5,394 5,892 18,569 6,581 24,369 17,016 2,943 14,073 Sept .78,004 5,427 5,914 18,605 6,588 24,415 17,055 9,962 14,093 Oct .78,346 5,448 5,935 18,705 6,604 24,524 17,130 2.966 14,164 Nov .78,555 5,466 5,958 18,761 6,608 24,604 17,158 2,974 14,184 Dec .78,800 5,481 5,984 18,784 6,619 24,725 17,207 2,980 14,227 1988: Jan ....... ............. 79,082 5,499 6,010 18,927 6,633 24,795 17,218 2,973 14,245 Feb ....... ............. 79,458 5,513 6,035 19,045 6,636 24,975 17,254 2,972 14,282 Mar .................... 79,690 5,530 6,061 19,050 6,651 25,078 17,320 2,970 14,350 Apr ....... ............. 79,846 5,543 6,089 19,093 6,650 25,163 17,308 2,963 14,345 May ....... ............ 80,023 5,556 6,115 19,130 6,656 25,216 17,350 2,957 14,393 June ........ ............ 80,465 5,582 6,148 19,205 6,679 25,472 17,379 2.951 14,428 July ................ 80.608 5,598 6,174 19,261 6,684 25,561 17,330 2.951 14,379 Aug ................ 80,786 5,605 6,192 19,279 6,689 25,662 17,359 2,956 14,403 Sept ................ 81,089 5.618 6,219 19,291 6,692 25,737 17,532 2,989 14,543 Oct ..... ........... 81,234 5,623 6,242 19,329 6,710 25,814 17,516 2,990 14,526 Nov P ................ 81,578 5,662 6,270 19,348 6,729 26,008 17,561 2,991 14,570 Note.-Data in Tables B43 through B45 are based on reports from employing establishments and relate to full- and part-time wage and salary workers in nonagricultural establishments who received pay for any part of the pay period which includes the 12th of tbe month. Not comparable with labor force data (Tables B-32 through b841) whbh include proprietors, self-employed persons, domestic servants, and unpaid family workers; which count persons as emnpToyed when they are not at work because ot industrial disputes, bad weather, etc., even if they are not paid for the time off; and which are based on a sample of the working-age population. For description and details of the various establishment data, see "Employment and Earnings." Source: Department of Labor, Bureau of Labor Statistics. C-17 TABLE B-46.-Productivity and related data, business sector, 1947-88 [1977=100; quarterly data seasonally adjusted] Output per hoer Hours d Cn tern Rl 3 per ta4 Ourt WO ets onor Year d or p - - T p- T Ya_ r L i _ _ _ _ _ _ quarter Woearm BUsiF Nofarm Busei Nontarm Busi- Nonearm Busi- Noedarm BusiF Nonfarm Busi- Nonfarm ness bum B bnens s ness bine ness bk ness busis ne ness Ib ness buies n SO& ectar sector sector nectar ed Or nSeor sercr tr sectCor j 1seCr nector 1947.......... 1948.......... 1949.......... 1950.......... 1951.......... 1952.......... 1953.......... 1954.......... 1955.......... 1956.......... 1957.......... 1958.......... 1959.......... 1960.......... 1961.......... 1962.......... 1963 . 1964.......... 1965........... 1966........... 1967........... 1968........... 1969........... 1970....... 1971........... 1972........... 1973........... 1974........... 1975........... 1976........... 1977........... 1978...... 1979........... 1980........... 1981........... 1982........... 1983........... 1984........... 1985........... 1986...... 1987........... 1982. IV. 1983: IV..... 1984: IV...... 1985 IV..-. 19861 ........ 11.... II. IV ...... 1987:1. 11.... 111 ...... Nl...... 1988:1 ........ 11.... 111.... 44.9 47.2 47.7 51.7 53.8 55.4 57.5 58.4 60.1 60.9 62.5 64.4 66.5 67.6 70.0 72.5 754 78.7 81.0 83.2 85.5 87.8 87.8 88.4 91.3 94.1 95.9 93.9 957 98.3 100.0 100.8 99.6 99.3 100.7 100.3 103.0 105.5 107.7 110.1 111.0 101.0 103.8 105.9 108.5 110.5 110.4 110.0 109.8 109.9 110.6 111.7 111.8 112.8 111.8 112.2 51.4 53.3 54.2 57.7 59.4 60.7 62.1 63.0 64.8 65.2 66.5 68.0 70.2 71.0 73.2 75.6 78.3 81.4 83.4 85.2 87.1 89.4 89.0 89.3 91.9 94.7 96.4 94.3 96.0 98.5 100.0 100.8 99.3 98.8 99.8 99.2 102.5 104.6 106.1 108.2 109.0 99.7 103.3 104.9 106.5 108.6 108.4 108.0 107.8 107.8 108.6 109.6 109.9 110.8 110.1 110.6 36.2 38.3 37.4 41.0 43.9 45.3 47.4 46.5 49.7 51.1 51.7 50.7 54.4 55.4 56.5 59.4 62.1 65.9 70.0 73.6 75.6 78.9 81.1 80.3 82.5 87.7 92.9 91.3 89A 94.5 100.0 105.8 107.9 106.7 108.9 105.5 109.9 119.2 124.2 128.6 133.3 105.0 113.6 120.8 125.9 128.4 128.2 128.5 129.3 130.5 132.2 134.3 136.2 138.0 138.8 139.7 35.2 37.2 36.4 39.9 43.0 44.4 46.4 45.5 48.7 50.2 50.9 49.8 53.7 54.6 55.7 58.7 61.5 65.4 69.5 73.4 75.3 78.8 80.9 80.0 82.2 87.5 92.9 91.2 89.1 94.4 100.0 106.0 107.9 106.7 108.5 104.9 110.1 119.2 123.9 128.2 133.0 104.2 114.1 120.7 125.5 128.1 127.8 128.1 128.8 130.1 131.9 134.1 136.0 137.9 139.2 140.4 80.6 81.2 78.5 79.3 81.6 81.7 82.5 79.7 82.7 83.9 82.7 78.8 81.8 81.9 80.7 81.9 82.4 83.7 86.4 88.5 88.5 89.9 92.3 90.8 90.4 93.2 96.9 97.3 93.4 96.1 100.0 104.9 108.3 107.5 108.2 105.2 106.8 112.9 115.3 116.8 120.1 103.9 109.4 114.0 116.1 116.2 116.1 116.8 117.8 118.8 119.5 120.3 121.8 122.3 124.1 124.5 68.6 69.8 67.0 69.1 72.3 73.0 74.8 72.2 75.1 77.0 76.6 73.3 76.4 76.9 76.0 77.6 78.5 80.3 83.3 86.2 86.4 88.1 90.9 89.7 89.4 92.3 96.3 96.7 92.8 95.9 100.0 105.1 108.7 108.0 108.7 105.7 107.5 114.0 116.8 118.5 122.1 104.5 110.4 115.1 117.9 117.9 117.9 118.6 119.5 120.7 121.5 122.3 123.8 124.4 126.4 126.9 16.6 18.1 18.4 19.7 21.6 23.0 24.6 25.3 26.0 27.7 29.5 30.9 32.2 33.6 34.9 36f6 37.9 39.9 41.5 44.3 46.7 50.4 53.9 57.8 61f6 65.5 70.9 77.6 85.2 92.8 100.0 108.5 119.1 131.5 143.7 154.9 161.4 167.9 175.5 183.1 190.4 158.3 163.6 170.3 178.8 180.4 182.0 184.0 186.2 187.3 189.0 191.1 194.0 195.8 198.1 201.0 18.0 19.6 20.2 21.4 23.3 24.6 26.0 26.8 27.8 29.5 31.2 32.5 33.8 35.3 36.5 38.0 39.3 41.1 42.5 45.0 47.5 51.1 54.4 58.2 62.0 66.0 71.2 78.0 85.6 92.8 100.0 108.6 118.9 131.3 143.6 154.8 161.5 167.8 174.9 182.3 189.4 158.2 163.4 1702 177.9 179.8 181.2 183.1 185.4 186.4 187.9 190.0 192.9 194.6 196.6 199A 45.2 45.4 46.8 49.6 50.5 52.6 55.7 57.1 58.8 61.8 63.7 64.8 67.2 68.9 70.8 73.4 75.1 78.0 79.8 82.9 84.8 87.8 89.0 90.3 92.1 94.9 96.8 95.4 96.0 98.8 100.0 100.9 99.4 96.7 95.8 97.3 98.2 97.9 98.8 101.2 101.5 98.0 98.1 98.1 99.4 100.0 101.2 101.7 102.2 101.5 101.2 1014 102.0 102.1 102.1 102.4 49.0 49.2 51.4 53.8 54.3 56.2 59.0 60.4 62.9 65.8 67.3 68.1 70.4 72.3 73.9 76.2 77.8 80.4 81.8 84.2 86.2 89.0 89.9 90.9 92.8 95.7 97.2 95.9 96.4 98.9 100.0 100.9 99.2 96.6 95.8 97.2 98.3 97.9 98.5 100.8 101.0 97.9 97.9 98.1 99.0 99.6 100.7 101.2 101.8 101.0 100.6 100.8 101.4 101.5 101.3 101.5 37.0 38.3 38.5 38.1 40.3 41.5 42.7 43.4 43.2 45.5 47.2 48.0 48.5 49.7 49.9 50.4 50.3 50.7 51.2 53.3 54.7 57.4 61.4 65.4 67.4 69.6 73.9 82.7 89.0 94.3 100.0 107.6 119.5 132.5 142.7 154.5 156.7 159.1 162.9 166.3 171.5 156.8 157.6 160.7 164.8 163.3 164.9 167.3 169.6 170.5 170.8 171.1 173.5 173.5 177.1 179.1 35.1 36.7 37.2 37.1 39.2 40.5 41.9 42.6 42.9 45.3 47.0 47.7 48.2 49.7 49.8 50.2 50.2 50.5 50.9 52.8 54.5 57.1 61.2 65.2 67.4 69.7 73.9 82.7 89.2 94.3 198.0 107.7 119.7 132.9 144.0 156.0 157.6 160.4 164.9 168.6 173.8 158.7 15802 162.3 167.1 165.5 167.1 169.5 172.1 172.9 173.0 173.3 175.6 175.7 178.6 180.2 35.5 38.0 37.8 38.4 40.8 41.4 41.7 42.2 43.2 44.6 46.2 46.9 47.8 48.5 48.8 49.7 50.2 50.7 51.9 53.6 54.9 57.5 60.4 63.2 66.4 69.0 73.4 80.5 88.7 94.0 100.0 107.3 117.0 127.6 139.8 148.1 153.0 158.2 162.2 165.8 170.5 150.2 155.2 159.8 163.7 163.7 165.0 167.0 167.5 168.7 170.1 171.2 171.9 172.3 174.7 176.7 34.0 36.4 36.9 37.5 39.6 40.4 41.1 41.8 43.1 44.5 46.1 46.6 47.8 48.5 48.8 49.7 50.2 50.8 51.9 535 55.0 57.5 60.4 63.4 66.6 69.0 72.3 79.7 88.3 93.8 100.0 107.0 116.5 127.8 140.3 149.2 154.3 159.0 163.8 167.8 172.5 151.4 156.2 161.0 165.5 165.7 167.0 169.0 169.5 170.9 171.9 173.2 174.0 174.2 176.2 177.9 'Output rdetur tu grass domestic product originating in the sector in 1982 dollars. 'Heurs ad all persos engaged in the sector, including hours of proprietors and unpaid family workers. Estimates based primarily on estabbsnmmid . ' Wages and salaries of employees plus employer' contributions for social insurance and private bendit plans. Also includes an estimate of wages, salaries, and nspplemental payments fr the self-employed. 4 Ibur" comP eato divided by the consumer pce indes for all urban consumers. ' Current dollr grosdomestic product divided by constant doBlar gross domestic product. Source Departmnt of Labor, Bureau of Labor Statistics. C-18 . _ TABLE B-47.-Cbanges in productivity and related data, business sector, 1948-88 [Percent change from preceding period; quarterly data at seasonally adjusted annual rates] a" pepher 1 I soun Io A nuenailnper Rd UeIsnt icosts _ atp d Prs 2 , - rw - ____ - T- Yadr _odi Nnlano Busio nW Ouso- Nlufam Bmie _fa Busim Nwan BusibNonfanm Bue Md. m no ha no uss nm busm ness ms ness bIm noe s n. m boem 3fctr sector sae:b setor 3ncter sectur sector sector sectcr secor xdtr or secMr No 1948.......... 1949.......... 1950 . 1951......... 1952.......... 1953.......... 1954.......... 1955 .. 1956........... 1957 ........ 1958.......... 1959.......... 1960.......... 1961... ........ 19621...... 19634. _ 1964......... 19785...._.... 1974-..... 1980..... 1969.- 1970. ... 1971. 1972........ 19735. 1974.---. 1975---_ 1976--.-~. 1982-.--...... 19783 ...- 1984: ...... 1984-1... 1985 ........... 1986I........ 1987 ........... l982- IV. 19.IV. 1984. N.... 1987 .. If. 1 1 ....... 111... 5.0 1.1 8.3 4.0 3.1 3.6 1.6 3.0 1.3 2.6 3.0 3.3 1.7 3.5 3.6 4.0 4.3 3.0 2.8 2.7 2.7 .1 .7 3.2 3.0 2.0 -2.1 2.0 2.8 1.7 .8 -1.2 -.3 1.4 -.4 2.7 2.5 2.1 2.2 .8 3.0 3.1 1.7 .7 7.7 -.4 -1.4 -.8 .3 2.7 3.9 .6 3.5 -3.4 1.5 3.8 1.7 6.4 3.0 2.2 2.2 1.5 2.9 .6 19 2.4 3.2 1.1 3.1 3.3 3.6 3.9 2.5 2.1 2.3 2.6 -.5 .3 3.0 3.1 1.8 -2.2 1.8 2.6 1.6 .8 -1.6 -4 1.0 -.6 3.3 2.1 1.4 2.0 .8 2.4 1.4 1.2 .2 8.4 -.8 -1.5 _.9 .0 3.2 3.7 .9 3.4 -2.4 1.9 5.9 -2.3 9.5 7.1 3.2 4.6 -1.8 6.9 2.8 1.1 -1.8 7.3 1.8 1.9 5.2 4.6 6.0 6.3 5.2 2.7 4.4 2.7 -.9 2.7 6.3 6.0 -1.8 -2.1 5.8 5.8 5.8 2.0 -1.1 2.1 -3.1 4.2 8.4 4.2 3.5 3.6 -.5 10.4 3.5 3.6 8.3 -.8 .9 2.5 3.7 5.3 6.6 5.7 5.5 2.4 2.6 5.6 -2.3 9.7 7.7 3.2 4.6 -2.0 7.1 3.1 1.3 -2.0 7.7 1.7 2.0 5.5 4.7 6.3 6.4 5.6 2.5 4.7 2.7 -1.1 2.7 6.4 6.2 -1.8 -2.3 6.0 5.9 6.0 1.9 -1.2 1.7 -3.3 5.0 8.3 3.9 3.5 3.8 -1.2 9.8 3.1 3.5 8.5 -.8 .8 2A 4.0 5.7 6.8 5.9 5.6 4.0 3.4 0.8 -3.4 1.1 2.9 .1 .9 -3.4 3.7 1.5 -1.5 -4.7 3.8 .1 -1.6 16 .6 1.6 3.2 2.4 -.0 1.7 2.6 -1.6 -.5 3.1 3.9 .4 -4.0 2.9 4.0 4.9 3.2 -.8 .7 -2.8 1.5 5.7 2.1 1.3 2.8 -3A 7.1 1.8 2.9 .6 -.4 2.3 3.4 3.4 2.5 2.6 5.1 1.9 6.0 1.1 1.7 -3.9 3.0 4.6 1.0 2.4 -3.4 4.0 2.5 -.6 -4.3 4.3 .6 -1.1 2.1 1.1 2.3 3.8 3.4 .3 2.0 3.2 -1.3 -.3 3.3 4.3 .4 -4.0 3.4 4.3 5.1 3.5 -.7 .7 -2.7 1.6 6.0 2.5 1.5 3.0 -3.5 8.2 1.9 3.4 .0 -.0 2.4 3.3 4.0 2.5 2.9 4.9 2.1 6.6 1.5 8.5 1.7 7.3 9.8 6.3 6.7 3.2 2.5 6.7 6.5 4.6 4.4 4.3 3.9 4.7 3.8 5.2 3.8 6.9 5.4 7.9 7.0 7.3 6.4 6A 8.3 9.5 9.7 8.9 7.8 8.5 9.7 10.5 9.2 7.8 4.2 4.1 4.5 4.3 4.0 4.5 5.5 3.8 5.4 3.7 3.7 4.4 4.8 2.5 3.6 4.6 6.2 3.7 4.8 6.1 8.5 3.0 6.1 8.7 5.6 5.7 3.3 3.6 6.2 5.7 4.1 4.1 4.4 3.3 4.1 3.5 4.6 3.4 5.9 5.5 7.6 6.6 7.0 6.5 6.5 7.9 9.6 9.7 8.4 7.7 8.6 9.5 10.5 9.4 7.8 4.3 3.9 4.2 4.2 3.8 5.0 4.3 3.9 5.1 4.3 3.2 4.3 5.1 2.1 3.4 4.5 6.4 3.5 4.2 5.6 0.4 3.0 6.0 1.8 4.3 5.9 2.5 2.9 5.1 3.1 1.7 3.6 2.5 2.8 3.6 2.4 3.9 2.2 4.0 2.2 3.5 1.5 1.5 2.0 3.1 1.9 -14 .6 2.9 1.2 .9 -1.5 -2.7 -1.0 1.6 .9 -.2 .9 2.4 .3 3.2 1A .6 1.3 2.1 5.1 2.0 2.1 -2.8 -1.2 .8 2.4 .3 .0 1.3 0.4 4.3 4.8 .8 3.6 4.9 2.5 4.0 4.6 2.4 1.2 3.4 2.6 2.2 3.1 2.2 3.3 1.7 3.0 2.3 3.2 1.0 1.2 2.0 3.2 1.6 -1.3 .5 2.5 1.2 .9 -1.7 -2.7 -.8 1.5 1.1 -.4 .6 2.3 .2 3.8 .2 .7 1.0 2.7 4.6 1.9 2.3 -3.2 -1.4 .6 2.6 .1 -.5 .8 3.3 .6 -.9 5.6 3.1 3.0 1.6 -.5 5.3 3.8 1.6 1.0 2.6 .3 1.1 -.2 .8 .9 4.1 2.6 5.0 6.9 6.5 3.1 3.3 6.2 11.9 7.6 5.9 6.0 7.6 11.1 10.9 7.7 8.3 1.4 1.5 2.4 2.1 3.1 1.5 2.3 2.1 4.7 -3.7 4.1 5.8 5.7 2.2 .8 .7 5.6 .2 8.5 4.5 4.6 1.3 -.3 5.6 3.3 3.5 1.8 .7 5.5 3.8 1.6 .9 3.3 .1 .8 -.1 .7 .8 3.7 3.2 4.8 7.1 6.7 3.4 3.4 6.0 12.0 7.8 5.7 6.1 7.7 11.2 11.0 8.3 8.4 1.0 1.8 2.8 2.2 3.1 2.6 2.8 2.7 4.9 -3.8 4.0 5.9 6.1 2.1 .2 .7 5.4 .1 6.8 3.7 7.2 -.6 1.5 6.3 1.3 .7 1.2 2.6 3.2 3.5 1.6 2.0 1.4 .5 1.9 .9 1.0 2.3 3.3 2.5 4.6 5.1 4.7 4.9 4.0 6.4 9.6 10.3 5.9 6.4 7.3 9.0 9.0 9.6 5.9 3.3 3.3 2.5 2.3 2.8 2.4 4.8 2.7 2.6 .1 3.2 5.0 1.1 3.0 3.2 2.8 1.4 1.0 5.8 4.5 7.2 1.3 1.8 5.6 2.0 1.8 1.5 3.2 3.3 3.6 1.2 2.5 1.4 .6 2.0 .9 1.2 2.0 3.1 2.9 4.6 5.0 4.9 5.0 3.6 4.8 10.2 10.8 6.3 6.6 7.0 8.9 9.7 9.7 6.3 3.5 3.0 3.0 2.4 2.8 3.0 3.1 3.3 2.1 .4 3.0 5.1 1.2 3.3 2.3 3.1 1.8 .6 4.7 3.8 Output refers to gross domestic product originating in the sector in 1982 doilars. 2 Omurs dallrsonsengaged ithesector, induding hurs of proprietors and unpaid family workers. Estimates based primarily on WagWo mmd salries of ompoynes plus omplayers' contributions for social isorance and private benefit plans. Also includes an estimate of wages, salries and supplomental paynents for the sef-employed 4 Huerle e n &ided by the consumer price index for all urban consumers. ' Cumentdolbrgrosdnmestic product divided by ceestant dollar gross domestc producL Hoot-Percent changes are based on original data and therdore may differ slightly from percent changes based on indexes in Table 8-46. Source: Department of Labor, Bureau of Labor Statistics. C-19 I - - -1 I I D. EMPLOYEE BENEFITS Comparing employee benefits in the public and private sectors The types and characteristics of benefits offered in medium and large firms in private industry and in State and local governments differ; however, the incidence of the benefits is similar WILLIAM J. WIATROWSKI While employee benefits are an important part of the compensation package for all workers, the characteristics of the benefit programs vary considerably between the private and public sectors. Differing employer and em- ployee needs affect the types and charcteistics of ben- efits received. This article compares the incidence and administration of employee benefits for full-time employees in the private and public sectors, and examines the characteristics of work schedules and paid leave plans. Accompanying arti- cles appearing in this issue of the Review compare other private and public sector benefits-employer-sponsored health and life insurance and disability benefits, and de- fined benefit pension plans and defined contribution plans (such as savings and thdft, profit-sharing, and stock own- ership plans). Taken together, these articles represent a current, comprehensive look at benefits provided to em- ployees in medium and large firms in private industry and in State and local governments. The data are from the Bureau of Labor Statistics' an- nual Employee Benefits Survey.' They show that: * Paid vacations are granted to nearly all full-time em- ployees in medium and large firms in private industry, compared with about three-fourths of those employed by State and local governments. Teachers are the least likely of public employees to receive paid vacations; police and firefighters, the most likely. Private firms generally provide many single-purpose types of leave (such as separate vacation and personal leave plans); State and local governments are more likely to provide a multiple-purpose annual leave plan. * Defined benefit pension plans for State and local gov- ernment workers, which are often jointly financed by employers and employees, provide more generous ben- efits than do plans in the private sector, which typically are financed by the employer only. However, private sector pensions are almost always accompanied by So- cial Security benefits. In the public sector, approxi- mately one-fourth of pension plan participants work for jurisdictions not in the Social Security system. * Participation in health maintenance organizations (HMO'S) is more prevalent among public employees. Concentrations of public sector emnployers in metropol- itan areas, where HMO's are widely available, may help to explain civil servants' greater participation in these prepaid health plans. The survey The Bureau of Labor Statistics' Employee Benefits Sur- vey, begun in 1979, initially looked exclusively at benefits in medium and large firms in private industry. The survey coverage mirrored that of the Bureau's National Survey of Professional, Administrative, Technical, and Clerical Pay (PATC survey), yielding both pay and benefits data. In 1987, for the first time, the Employee Benefits Survey focused on benefits in State and local governments.2 For William J. Wiatrowski is a labor economist in the Division of Occupa- tional Pay and Employee Benefit Levels, Bureau of Labor Statistics. Reprinted from Monthly Labor Review, December 1988, 3-8. D-1 MONTHLY LABOR REVIEW December 1988 * Employee Benefits in the Public and Private Sectors both the private and public sector surveys, geographic to as blue collar. The data refer to all employees, unless coverage is limited to establishments in the 48 contiguous differences among occupations warrant a more detailed States. treatment. The Employee Benefits Survey provides information on the incidence and characteristics of paid leave, insurance g er tsuadloa gee ntsuclasfed Stete plans, defined benefit pension plans, defined contribution goemet an. oa oemnscasfe sete plans, flexible benefits apsangements, and wor ibution administmtive units, school districts, health services, or plans, flexible benefits arrangements, and work schedues. 'special districts, such as water and sewer authorities and Eligibility (but not details of plan provisions) for several regional trnsit operations. Minimum employment for lo- additional benefits, such as severance pay and employer- cal government units was 50 employees. The entire State subsidized parking, is also provided. With a few excep- government was considered a single unit for sampling tions, the survey is limited to benefits financed at least in purposes; thus, both administrative units and other units, part by employers. It is constantly revised in an effort to such as State university systems and hospitals, were in- keep abreast of new developments in employee benefits cluded. The study provides representative data for 10.3 plans. million full-time workers in State and local governments, Private sector survey. During the 1979-86 period, when approximately three-quarters of the State and local gov- ' ernment work force. medium and large firms in the private sector were sur- To reft diffrces veyed, the industrial coverage included manufacturing; To reflect differences in benefit plans, employees in mining; construction; transportation, communications, State and local governments were classified as either "reg- mii g co sr ci n tr n potti n comm nicaions ular" employees, teachers, or police and firefighters. electric, gas, and sanitar services; wholesale trade; retail Regular employees are all workers except teachers or po- trade; finance, insurance, and real estate; and selected Reuaemlysara wkrsxcptahrsopo 3 i n a a n e ce and firefighters. Because of benefit differences among services. The minimum number of employees requlred these occupations, the discusion compares the pla for an establishment to be surveyed varied by industry, avaable to each group of these State and local gover- ranging from 250 employees in mining, construction, and ment employees.4 other industries to 50 employees in accounting service firms. The survey covered about 21 million workers. Ieldemce of benefits Employees are grouped into three broad occupational When comparing benefit practices between public and categories-professional and administrative, technical private sectors, one must consider groups of benefits: and clerical, and production-to capture possible occu- whether workers receive a particular benefit often de- pationaldifferencesinbenefitplanavailabilityanddeign. pends upon what other items they are receiving.5 For The first two occupational groups are often ch d exmple, only 14 percent of public sector workers receive as white collar, while production employees are referred sicknes and accident insurance, but these workers are Ta[a 1. Peent of fame nmplg p I ased bneft pa, medium and W finms I private Indusr" and State bS k 9 i D-2 gu d _l _ -TudN Peat sa, _ 6 Lxchperiod ........... . 1_ 3 1 7 17 10 32 39 Redtime ......................... 72 63 82 56 74 16 48 Hoida ........................... . go 96 61 95 45 93 Vacations .......................... 100 98 100 72 93 13 100 Peosal lave .......................... 25 34 15 38 32 56 36 Fwal m ............6............. 88 87 Be 56 56 52 75 M my lea ............. ............. 66 73 58 90 85 65 86 Jury duty nve .......................... 93 96 g0 98 99 97 92 SlcIstave .......................... 70 93 45 97 97 95 97 Siussand accidknt ......................... 49 31 69 14 18 5 14 H .e .9.......................... 5 95 96 94 94 95 96 Le .........................96 97 95 95 85 82 91 Long-t-m isabilty ......................... 48 64 30 31 28 41 19 Darsd benfth pesion pib ................... 76 78 74 93 92 95 93 Definedco b pis ........................ 47 54 40 8 9 8 13 'RegW wnpbye are dawork,ersxeoept tacws and polo uand srshts. almost universally covered by paid sick leave, which re- duces the need for such insurance. Health insurance, one of the benefits studied in detail by the Employee Benefits Survey, shows practically no variation by sector. About 95 percent of employees in private industry in 1986, and 94 percent of those in State and local government in 1987 had health insurance cover- age.6 (See table 1.) Life insurance is provided to 96 percent of private sector employees, while in the public sector, 91 percent of police and firefighters and just over 80 percent of teachers and regular workers are covered. Participants in public sector pension plans are often eligi- ble for lump-sum death benefits, which make up for the lower incidence of life insurance. Short-term disability coverage is similar in both sec- tors-94 percent of private sector employees and 97 percent of public sector employees participate. But, as noted earlier, the method of providing benefits differs considerably. Long-term disability insurance is most com- mon among white-collar private sector employees; in contrast, blue-collar private sector employees and public sector employees often have pension plans that provide disability coverage after short-term diasbility benefits have been exhausted. Defined benefit pension plans, which specify a formula for determining the recipient's benefit, are provided to more than 9 of 10 workers in State and local governments and to 3 of 4 employees in medium and large firms in private industry. The incidence of these plans in the pri- vate sector has declined from 83 percent of employees in 1980. In their place, defined contribution plans (such as savings and thrift and profit-sharing plans), which specify the contribution of the employer but do not guarantee a benefit, have grown in popularity as a source of retire- ment income and capital accumulation. Few defined contribution plans are found in the public sector. Paid time off can range from a few minutes for a coffee break to several weeks of vacation. These benefits vary significantly among occupations and between the private and public sectors; often, unusual work schedules necessi- tate unique time-off provisions, as for teachers. Paid holidays and vacations are widely provided to all workers except teachers, who are often employed by contract for a fixed number of days, and whose stated pay is based on the contracted days. In contrast, personal leave, available to an employee for any reason, is provided to nearly three- fifths of the teachers; about one-third of the remaining public sector employees and one-third of the white-collar private sector employees receive such leave. Only 15 per- cent of the blue-collar workers in the private sector have personal leave provisions. Formal paid rest time is most commonly provided to blue-collar workers in the private sector and regular em- ployees in the public sector, such rest time is least common among teachers, whose daily schedules often do not allow for such a break. Paid lunch time is not usual for any of the worker groups, but is most prevalent among teachers and police and firefighters. Paid time off for jury duty is pro- vided to nearly all employees; military leave is more common among public sector workers, except teachers; and formal paid funeral leave is more common in the pri- vate sector. Additional benefits In addition to providing data on the incidence and characteristics of paid time off, insurance, and retirement and capital accumulation plans, the Em- ployee Benefits Survey gathers information on the inci- dence of a number of other benefits. The survey measures the number of workers eligible for each of these benefits, whether or not employees actually use the benefits. Twelve benefits were studied in the surveys of medium and large firms in private industry in 1985 and of State and local governments in 1987.7 Benefits typically found in only one of the sectors-such as sabbatical leave in the public sector or employee discounts in the private sec- tor-are not discussed in this article. For many of the benefits, incidence is greater in the private sector than in the public sector. (See table 2.) For example, severance pay is available to almost half of the employees in medium and large firms in private industry, but to fewer than 10 percent of State and local government employees. Other benefits occurring more frequently in the private sector include supplemental unemployment benefits, relocation allowances, and travel accident insur- ance. The incidence of these benefits partly reflects the more uncertain nature of job security in private industry, D-3 Table 2. Percent of full-time emplo ees eligible for selected benefits plans, medium and large firms In private Industry and State and cal governments Prvate MANet,, Stat amd tectgneeeoa, 55 beth -t 4l _ la en a_ Sevancepay ........ 45 6 6 7 5 Supplernental onem- ployewtht s b.ne...8 1 1 (I i I Refoation aowce . 43 15 20 5 8 Parking ........... 86 73 68 86 73 Subaidzdconumq . 5 5 5 2 7 Travel accident-,sur anoy .. ....... 52 16 15 19 13 Fnanolscosn ...ng II 10 t II 9 9 Prepeideslaervics 3 6 6 5 11 Childcre ........... 1 2 2 1 1 Recretion facttes .. 33 1 11 1i2 11 SubedIo srme ..... 21 12 10 In9 Iny.hoenlray ..... 46 19 19 it 13 'DaA on te beneft waer not ooected In he lt survey of private Induey. See tWt ootnt 7. sru n tMloyes are d workemeno pteche nd pol enditreght. L sthan 0.5 peret MONTHLY LABOR REVIEW December 1988 a Employee Benefits in the Public and Private Sectors compared with State and local governments, and the lack of need to move public employees to different locations, as is done in private firms. Benefits that attempt to meet employees' personal needs are available to a small number in each sector. Employer-subsidized child care benefits, either an onsite facility or employer reimbursement of costs for an inde- pendent facility, are available to 2 percent of public sector employees and I percent of private sector employees. Sim- ilarly, financial counseling, prepaid legal services, and subsidized commuting are available to about 10 percent or fewer of the employees. There appears to be little dif- ference in the incidence of these benefits between the public and private sectors. Employer-subsidized parking, either in an employer- provided facility or through reduced rates in a commercial facility, is available to more than 70 percent of employees in both the public and private sectors. However, employers in major metropolitan areas, where parking facilities are scarce, often do not offer subsidized parking. Employer- provided recreation facilities, subsidized meals, and in- house infirmaries are more common among private sector employees than public sector employees. Amount of paid time off Paid lunch time is not a common benefit, but is most often given to elementary and secondary schoolteachers, police and firefighters, and private sector blue-collar workers. Teachers are often required to remain on the school premises during lunch, and may even have specific duties, such as monitoring students. Similarly, the private sector blue-collar workers most likely to receive paid lunch time are those who are unable to leave the worksite, such as coal miners. Paid lunch time averaged just more than a half hour in the public setor, and just under a half hour in the private sector. (See table 3.) Paid rest time includes coffee breaks and cleanup time. This benefit was counted if it was formal; that is, estab- lished provisions existed. Informal policies, which may be more common among white-collar workers, were ex- cluded. A majority of private sector employees and regular public sector employees had formal paid rest pro- visions, usually two daily breaks of 10 to 15 minutes each. Teachers and police and firefighters, because of the nature of their work and unusual work schedules, were less likely to receive formal paid rest time. Nearly all employees in all occupational groups, except teachers, received paid holidays. Teachers often were paid on the basis of the number of school days in a year, and were not considered by their school system as paid on holidays and other days off. In the private sector, employ- ees most commonly received 10 holidays; public sector workers often received 11 or 12 holidays, the result of State and local observances. One significant difference between public and private sector paid time-off benefits is in paid vacations. In the public sector, vacations are often considered "annual leave," time available for a variety of uses, including vaca- tions. Annual leave plans often provide more days than do private sector vacation plans. However, annual leave must be used for such personal matters as funerals, while pri- vate sector employees are more likely to have vacation and other leave policies.' Employees in establishments that require around-the- clock staffing, such as hospitals, may be part of a "leave bank" or receive "all-purpose leave." These plans often combine holidays, vacation, sick leave, and other leave into one block of time off. Employees then coordinate their leave requests so that adequate staffing is maintained. In both the private and public sectors, paid vacation days usually increase with length of service. The following tabulation details the average number of days provided at selected service intervals for employees who participated in a vacation or annual leave plan: Length of serice Iyear Jyevars 1Oyears 20years Private industry: All workers ......... 8.8 12.7 15.8 20.6 State and local gov- ernments: All workers ......... 12.0 15.0 17.7 21.4 Regular workers 11.8 14.8 17.7 21.4 Teachers ....... 14.3 15.7 16.9 18.7 Police and fire- fighte ....... 12.6 15.8 18.8 22.7 These data suggest that public sector employees receive more paid leave at fewer years of service than do their private sector counterparts, but the difference narrows as D-4 Table . Average lngth of paid lime off, meium and lage fim n prvte huatry and State and lcal governmenta l. Sleadmeal_ 1KI Paw' heat AUI AU1 Isgur T n - Lunch lime (mnutes per day) 27 34 36 32 34 Rest tme (mtdes per day) 26 29 29 28 29 Hdas (days per year) .... 10.0 10.9 11.1 9.8 11.2 Personal have (days per yeO . 3.7 2.7 2.8 2.7 2.6 Fueral leave (daysper o 0 32ICce ... 3.2 3.7 3.6 4.1 3.5 Miatry have (days per ye) . 11.5 17.2 17.1 17.4 17.1 'Regulr employees re all workers exoept teachers and poice and fire- fighters. NOTE: Comntaon of averages excudes wors ng unsPecd numbers of days. length of service increases. For the small percentage of teachers receiving a paid vacation, the number of days varied only slightly as years of service increased. Paid personal leave allows employees time off for a variety of purposes. Teachers are the most common recip- ient of this benefit, perhaps because they seldom receive paid vacations. Personal leave plans typically provide I to 5 days per year. The average of 3.7 days per year in the private sector is about I day more than that of the public sector. Separate formal funeral leave plans are more common in the private sector; public sector workers without such a plan may use annual leave for this purpose. Where plans are available, they most commonly provide 3 days of fu- neral leave per occurrence in both the public and private sectors. About 23 percent of private sector employees and 17 percent of those in the public sector were in plans that varied the number of days according to the relationship of the employee to the deceased. Paid military leave was available to a majority of all employees in both sectors. On average, State and local government employees could receive just over 3 weeks of paid lave, while private sector employees could receive just over 2 weeks. Paid time off for jury duty was almost univerally pro- vided to all employees. These plam uually provided leave as needed, rather than specifying a fixed number of days. Work sdWules For many years, employees worked 40 hours a week, usually in 5 days, with relatively few departures from this pattemr9 However, this schedule is gradually becoming less common, as flexible work hours and the need to have services provided at different times have reduced unifor- mity in working patterns. In the private sector, the S-day, 40-hour week is still the most common, applying to 82 percent of all employees, including 90 percent of produc- tion workers. Those not on a 40-hour schedule generally work fewer hours; 13 percent of technical and clerical workers, for example, work 37.5 hours per week-7.S hours per day. In the public sector, two-fifths of the employees work fewer than 40 hours per week. Elementary and secondary schoolteachers and regular public sector workers were generally scheduled for 5 days, 35 or 37.5 hours. Sched- uled hours for teachers often included preparation and grading time. Private sector workers were more likely to work a standard 5-day, 40-hour week. The survey did not collect data on work schedules for college and university teachers because they often do not work fixed schedules. Police and especially firefighters were more inclined to have unusual work schedules. A firefighter might work 24 hours, then have 24 hours off, work another 24 hours, and, finally, have 72 hours off. This cycle would then repeat. For the survey, this type of schedule was adjusted to determine the average number of days and hours worked in 7 days. For example, the above schedule yields a workweek of 2.3 days and 56 hours, a common schedule for firefighters.t0 Plan apomra The Employee Benefits Survey also develops data on sponsors of insurance and pension plans. (See table 4.) For private sector employees, benefits are sponsored by single employers, a multi-employer tust, or an employer association." Public employees; on the contrary, are under plans sponsored by either State or local governments. The only benefit plan found in both surveys is the mandated tempo- rary disability insurance plans in New York and New Jersey. (These plans are tabulated as sickness and accident insurance plans; they appear in table 4 as mandated bene- fits in the private sector and State-sponsored benefits in the public sector.) Data on plan sponsors reveal that single-employer plans dominate in the private sector, while public sector plans vary between State and local sponsors. Defined ben- efit pension plans for public employees are frequently State-sponsored; local governments either may be re- quired to join these plans, or may choose to join rather than establish their own plans. Conversely, health and life insurance benefits for local government employees are D-5 Table 4. Percent of full-time employees participating In selected benefits plans, by plan sponsor, medium and large firms In private Industry and Slate and local govenments $1Seam - Asel3p humw Hdbm Uh S---- dd ~~~~an - P4mb dAN", io AN erployees: Singleeonp loyer ........ 96 97 87 100 96 MuU.employer .......... 4 3 2 0 4 Employra catlon .... (1) (1) O (l) 0 Mandated benflts .... 0 0 11 0 0 geaeei t_ 1l7 All mpoyees: State ps od ........ 33 35 57 48 55 Locl sponsored ....... 67 65 43 52 15 Regular nmployes:1' Stat .p..ored...... 39 41 58 51 83 Locul ponwored ..... 61 59 42 49 17 State sponored ..... 24 27 (4) 46 95 Loel sponsored ..... 78 73 (4) 54 5 Po9oeard fn.rfte: State spnsored ..... 13 16 43 22 62 Loel spon d ..... 87 84 57 78 38 'Le Om 0.5 peret 3Resir npye are dN wokws eNcep ftesewe -An pokie and fire Ota%WOre IneuMfclnt to ehowNtWahrseopartey. Norc oeus d rourdng, sunsof d hAddu fbt msy rnot eultotals. - - MONTHLY LABOR REVIEW December 1988 * Employee Benefits in the Public and Private Sectors more likely to be sponsored by the local govemments. Employers may provide benefits to employees either individually or through a flexible (package) arrangement. The Employee Benefits Survey included the incidence of two types of flexible arrangements: flexible benefits (or cafeteria) plans and reimbursement (or flexible spending) accounts. Flexible benefits plans allow employees to choose between plans in two or more benefit areas, such as health, life, and disability insurance, and added vaca- tion days. Reimbursement accounts provide funds to pay for expenses often not included in benefit packages, such as health insurance deductibles and coinsurances," and employee child care costs. Flexible benefits packages were available to 2 percent of employees in medium and large firms in private industry, and to 5 percent of State and local govemment employees, most commonly teachers. Reimbursement accounts were available to 5 percent of all employees surveyed. g FOOTNOTES 'Survey data are published annually in a Department of Labor news relkac and a Bureau of Labor Statistics bulletin. In addition, articles providing greater detail on survey findingp are published periodically in the Monthly Labor Riew (see, for example, Donald Schmitt, "Today's pension plans: how much do they pay?" December 1985, pp. 19-25). This series of ardcls is the fifst to compare finding in the private and public sectorm. The most recent bulletin containing data on medium and large firms in private industry is Emnpyee Benefits in Medium and Large Firms 1986, Bulkdn 2281 (Bureau of Labor Statstics, 1987). Data on State and local govenmets are in EnW e Benefits in State and Local Gowenrenenx 1987, Bulktin 2309 (Bureau of Labor Statstics, 1988). 'The 1988 Employee Benefits Survey is being conducted in private industry, with an espnded sope that include allsrvice industries and firms empbying 100 empiyees or more. Future plans for the survey include apamion into smal private fim, a rotating schedule of private and public sector nsurveys, and the pubcation of baeefits dato for the entire civilian econmy, excluding farms, households, and the Federal Government. The selected services" were limited to adverting; credit rport and colleo awencies; computer and data p mengservwies; reearch and dOPMeet lab0rat1e COMMera testing I batie manWage meat and public relations services; engineering and architectural servie n iIl research organizo and accounting, audit- ing, and bookkeeping srie. 4For further deais On the Employee Benefits Survey, see Robert Fmumni and Willimm Wiatrownki, "Bureau of Labor Statstics taken a new look at employee benefits," Mowthl Labor Renw, August 1982, pp. 41-45. 'Compin of the incidence and chracte s of benefits explorm only one apect ofdiferenfea in public and private ector compensation. Judgments about overall compenation should not be made without aIso loing at wage and salay data For recent information On public and private sector pay, see Richard E Schumann, "State and local govern- meat pay increases outpace five-year rise in private industry," Monthly Labor Review, February 1987, pp. 18-20. 'Participants are defined in the survey as all employee covered by a benefit plan that does not require an employee contribution, and all workers electing to pay their share of the cost of pans that require an employee contribution. 7Data on these benefits were not collected in the 1986 survey of medium and large fims in private industry. Items are added and deleted from the list of these additional benefits periodically, reflecting current benefits trends For the most recent data collected in the private sctor, see Employee Benefits in Medium and Large Firms, 1985, Bulletin 2262 (Bureau of Labor Statstics, 1986), pp. 81-82. 'Where annual leave plns were encountered, the provisions were calculated as paid vacation days and were not included in other benefits, such as funeral leave For historical data on average weekly hours, see Handbook of Labor Statistics, Bulletin 2217 (Burmau of Labor Statistis, 1985), table 70. Today, wokweeks of less than 40 hous are more common in nonmanu- facturing industies than in manufacturing industnres. "Faid kave items, such as vacations and holdays, were adjusted for employee with unusual work schedukl For exampk, a firefighter who received five 24-hour shift off for vacation would be credited with 15 days paid vacation in the survey, based on a traditional 8-hour workday. "Sickneseand accident insuranoe is mandated by law for some work- ess The Railroad Unemployment Insurance Act provides short-term sickness and sacident insurance beneits to rairoad employee. State temporary disability insurance plans in New York and New Jersey man- date benefits for employees in covered establishments. Similar plans in Califonia and Rhode Island are excluded from the surveys because they are financed entirly by employee contnbutions "Deductibles are rquired to be paid by a plan participant before benefits are paid by the plan; coinsurance is the percentage of benefits, after the deductible is met, that is paid by the plan. D-6 SECTION 89 NONDISCRIMINATION AND QUALIFICATION RULES FOR EMPLOYERS PARTICIPATING IN MULTIEMPLOYER WELFARE PLANS By Pillsbury, Madison & Sutro SUMMARY Purpose and Effective Date of Section 89. The Tax Reform Act of 1986 added section 89 of the Internal Revenue Code (Code) to provide welfare benefit plans with uniform nondiscrimination and qualification rules for plan years beginning after 1988. The nondiscrimination rules are mandatory for group-term life insurance plans and accident or health plans, and are elective for other welfare benefit plans, such as dependent care assistance programs. Almost all welfare plans are subject to the new qualifica- tion requirements. Section 89 is effective for all plans, including multiemployer plans, for plan years beginning on or after January 1, 1989. Following a new trend, Congress did not exempt multiemployer plans (MEPs) from the new nondiscrimi- nation and formality rules, but did provide marginal relief as to the effective date. Employees who are covered by a MEP by virtue of working under a collective bargaining agreement ratified before March 1, 1986 may be excluded from the nondiscrimination tests until the earlier of: o The first year beginning after 1990; or o The first year beginning on or after the date on which the last of the collective bargain- ing agreements terminate (without regard to any post-2/28/86 extension). This temporary exclusion of employees covered by a collective bargaining agreement does not exempt an employer from applying the nondiscrimination tests to the portion of a MEP that provides benefits to any of its employees not covered by a collective bargaining agreement or from meeting the qualification requirements for those employees. D-7 Section DI NondiscriMination ?i&iu. Section 89's nondiscrimination rules were deigned to identify discrimination in favor of highly compensated employee. (generally employ ee who earn $50,000 or more and are among the top 20% of *mployees).* Each highly compen- sated employee will have imputed income in an amount equal to any discriminatory "excess" benefit he or she receives under a discriminatory welfare plan, and employers must report that imputed income on each affected employee's W-2. To determine if a plan is discriminatory, sec- tion 89 requires the application of several numerical tests and a nondiscriminatory term test. These tests include three eligibility tests and one benefits test labeled respec- tively the 50% test, the 90%/50% test, the nondiscriminatory torms test and the 75% benefits test. There is also an alternative 80% test. The application of these tests is greatly compli- cated by the fact that, under section 89, each separate option or benefit level io often considered to be a separate plan. A large employer with different HMOs and plans for different worksites, each of which has high and low options and individual and family coverage easily could be deemed to have numerous "plans" for section 89 purposes. In addition, for purposes of discrimination testing and incomo inclusion, welfare benefits must be valued under Code and regulatory provisions. The value of group-torm life insurance is to be determined using assumptions specified in section 89 and age-related cost tables set forth in IRS regulations under Code section 79. The value of medical plan benefits was to be determinod exclusively under regulations to be promul- gated by the IRS. However, because the IRS will not issue procedures for valuing medical benefits until after sec- tion 89 takes effect, a transition rule now requires employers to value medical plan benefits using employer cost or any other reasonable actuarial method. Section 89 treats all members of a controlled group of business entities as a single employer. Those controlled groups that sponsor a MEP** and different plans * If an employer has only highly componsated employees in any year, the nondiscrimination rules of section 89 will not apply. ** An employer "sponsors" a MEP if it is requirod to contribute to the MEP. D-8 for different subsidiaries and/or for salaried and hourly employees will have to take into account the value of the benefits under all of those plans, including a portion of the MEP, to identify and quantify discrimination in favor of the entire controlled group's highly compensated employees. The only exception to the controlled-group rule is that if an employer operates separate lines of business, section 89 will apply to each separate line of business as if it were a separate employer. For this purpose, a separate line of business can be established only by satisfying criteria that will be contained in regulations to be issued by the IRS. Because Congress recognized that emplovers cannot control the terms and conditions of a MEP, MEPs will be tested on the employer level just as single employer plans are tested. Section 89 was amended by the Technical and Miscellaneous Revenue Act of 1988 (TAMRA) to provide the following special rules for applying section 89's tests to MEPs, emphasizing that employers, not MEPs, will be doing all section 89 testing: 1. An employer may treat its MEP contribu- tions as the benefits provided under a MEP, 2. Reporting requirements under Code section 6039D (effective the same date section 89 is effective) are to be allocated by the IRS between an employer and the MEP based on the parties' agreement, 3. A MEP's age or length of service require- ment will not affect those requirements in an employer's other welfare plans, and 4. An employer participating in a MEP may select its own testing year and its own testing date for applying section 89. Since the employer will be doing the section 89 testing, a MEP administrator's primary, if not exclusive, responsibil- ity will be to maintain records, provide data to employers about which of their employees and their dependents are enrolled in which plans or options, and assist in any required reporting. Because section 89 requires that an employer's welfare plans meet certain nondiscrimination tests on the basis of all of its employees and all of its plans, an employer should develop the following data: 1. A list-of each accident or health plan and group-term life insurance plan it sponsors, D-9 including any MEPs (with options and benefit levels broken down into section 89 "plans"); 2. The total number of its employees, on a controlled group basis, including the number of employees eligible for participation in each of the above plans, the number of those employees and leased employees not eligible for participation, and the reasons why those employees and leased employees are not eligible to participate (age, length of service, and so on); 3. By plan, the number of single employees covered and the number of employees-plus-dependents covered (the MEP administrator will have to prepare the MEP portion of this data); 4. A list identifying (i) the employer's highly compensated employees (HCEs), again on a controlled group basis, (ii) the plans the HCEs are eligible for and (iii) the number of HCEs in each plan (once the MEP employer identifies the HCEs, the MEP administrator should provide the employer with the information required by item (iii)); and 5. Whether any line of business exception will apply. Random Sampling Employers may prove compliance with the section 89 nondiscrimination tests on the basis of a statistically valid random sampling if it is performed by an independent third party and produces a 95% level of confidence that sample results will have a margin of error of three percent or less. Time for Testing Plans are tested for nondiscrimination on the basis of facts in existence on one day (Testing Date) of a Testing Year (any 12-month period designated in the plans, or if no designation, the calendar year). The Testing Date must be the same for each Testing Year beginning after January 1, 1989 and may be specified in the plan document (if there is no designation, the last day of the Testing Year is used). In addition, the Testing Date and Testing Year must be the same for all plans of the same type (i.e., plans whose benefits are excludable under the same Code section), and an employer may not change the Testing Year after it is selected or the Testing Date selected in 1990 D-10 without IRS consent. As noted above, each employer partici- pating in a MEP may, subject to regulations, select its own Testing Date and Testing Year. Employer Sanctions. A stiff excise tax is imposed if an employer fails to report employees' imputed income arising under either the nondiscrimination rules or the qualification rules discussed below. A different excise tax applies if an employer main- tains a discriminatory voluntary employees beneficiary association. Qualification Requirements. The "qualification" or "formality" requirements of section 89 impose documentation, notice, exclusive benefit and permanence rules on welfare plans similar to the same type of rules applicable to qualified retirement plans. These new rules, set out in section 89(k), apply not only to accident or health plans and group-term life insurance plans, but also to tuition reduction programs, cafeteria plans, voluntary employees beneficiary associations, depen- dent care assistance programs and certain fringe benefit programs, such as employee discounts and subsidized eating facilities. If a group-term life insurance plan fails to comply with section 89's formality requirements, all bene- ficiaries will have income equal to the value of the bene- fits provided under the plan. For all other welfare plans that violate these requirements, all participating employees will be taxed on the value of the plan benefits for a tax- able year. However, if plan assets are held in a tax-exempt trust and the qualification rules are not met, the trust will lose its tax-exemption. These sanctions apply equally to multiemployer welfare plans and single employer plans. Section 89 may well be the most significant piece of employee benefits legislation since ERISA. Despite intense lobbying efforts to rescind the legislation or delay its effective date, Congress remained resolute and made section 89 effective for 1989, with or without further guidance from the IRS. D-11 E. LEGISLATION 1988 California Labor and Employment Legislative WraR-Up by Robert P. Oglesby Legislative Advocate Orrick, Herrington & Sutcliffe Our 1988 Wrap-Up summarizes the major labor and employment law legislation considered by the California Legislature this year, including those bilis that were enacted and those other bills that were defeated in the Legislature or vetoed by the Govemor. We begin by discussing Proposition 97, passed by the voters in the Novem- ber election, which will reestablish the Califomia Occupational Safety and Health program. ENACTED B[LLS WORKER SAFETY AND HEALTH Proposition 97 (Reactivation of Cal-OSHA): On November 8, California voters approved Proposition 97 which requires the Legislature and the Governor to reactivate the private sector component of the Califomia Occupational Safety and Health program ("Cal-OSHA") which was cancelled by the Governor in 1987. Reprinted with permission E-1 The 1970 federal Occupational Safety and Health Act ("OSHA"), mandated programs to protect the health and safety of workers. Absent an approved state plan, the federal government is required to enforce federal health and safety laws. California began operation of Cal-OSHA, its own worker health and safety program, in 1973. Under Cal-OSHA, the State Department of Industrial Relations enforced state workplace standards and regulations for both private and public sectors. In 1987, however, the Governor requested withdrawal of the private sector component of the state plan and eliminated funding for that com- ponent through his budget veto powers. The Governor stated the Cal-OSHA program unneces- sarily duplicated the federal program. The Governor's action triggered a series of court challenges, and ultimately led to the circula- tion, and subsequent qualification, of an initiative statute sponsored by a coalition of labor, health and environmental interests to restore the Cal- OSHA program. Proposition 97 was approved by the voters at the November 8 election by a wide margin. Proposition 97 contains various findings that the Cal-OSHA program was superior to the federal worker health and safety program and states the intent that the Cal-OSHA program be restored. In addition, Proposition 97 amends sec- tion 50.7 of the California Labor Code to require the reestablishment of the Cal-OSHA program and to require the Legislature and the Governor to sub- mit a budget which includes support of the Department of Industrial Relations in amounts suf- ficient to fully carry out the purposes and provisions of the state Cal-OSHA plan and other California Labor Code provisions in a manner which assures that risk of industrial injury, ex- posure to toxic substances, illness and death to employees will be minimized. Proposition 97 also added section 6303.5 to the California Labor Code which expressly authorizes the state to enforce state workplace health and safety standards in situations where there is concurrent jurisdiction over worker health and safety issues. Proposition 97 made no other changes to the laws or regula- tions governing worker health and safety. Interestingly, no specific dollar amount or funding formula is mandated by the initiative. In addition, Proposition 97 does not appear to re- quire the adopted state budget to provide for such funding, only the budget submitted to the Legisla- ture. Two other initiatives approved by the voters at the November election, Propositions 78 and 99, included specific funding levels for the programs affected by the propositions. Nevertheless, the Deukmejianadministration has announced its plans to restart Cal OSHA on January 1, 1989, and have it in full operation by the end of next June. Industrial Relations Director Ron Rinaldi appeared before the Assembly Sub- committee on Safety in the Workplace on November 30, 1988, and announced that he had asked the Department of Finance to find $8.5 mil- lion in the current budget to run the Cal-OSHA program for the remainder of the fiscal year. He further stated that the proposed 1989-90 state budget will include funding for the same number of job site inspectors that were authorized in the last full year of Cal-OSHA operations. The annual price tag for the program is estimated at $32 mil- lion with about $14 million to be reimbursed by the federal government. AB 3713, Connelly (Adds chapter 10.4, com- mencing with section 25915, to division 20 of the Health and Safety Code): This bill would require the owner of any building constructed before 1979 who knows that the building contains asbestos construction materials to provide written notice within prescribed time limits to all of his or her employees working within the building. Notice would also have to be provided to other persons who are owners, lessees, or operators of the build- ing or part of the building with whom the owner is in privity of contract. Notice would also have to be provided of any construction, maintenance or remodeling which created a potential for con- tact with or the release or disturbance of asbestos. Limited notice would be required for asbestos-con- taining construction materials located in isolated areas of the building or asbestos fibers encapsu- lated in the materials that compose the ceiling, walls or floors, as specified. (As amended 8/24/88.) Status: Enacted by the Governor on 8/22/88 (Chapter 1502, Statutes of 1988). Effective on 1/1/89. LABOR COMMISSIONER PROCEDURES AB 1160, Floyd (Amends section 98 of the Labor Code): Existing law provides that, within 30 days from the date a complaint seeking wages or other compensation is filed, the Labor Commiiis- sioner must notify the parties whether a hearing will be held. If a hearing is to be held, it must be within a reasonable period of time. Under this E-2 bill the hearing must be held within 90 days after the notification. (As amended 1/7/88) Status: Enacted by the Governor on 2/1/88 (Chapter 5, Statutes of 1988). Effective 1/1/89. AB 2532, Jones (Amends sections 64, 98. 1, 98.2, 226.5, 1023, 1289, 1299 and amends and renumbers sections 1394.5, 1396, and 3725 of the Labor Code. Repeals section 1397 and repeals and adds section 2681 of the Labor Code): Modifies the procedures for serving decisions of formal wage claim hearings by permitting the decisions to be served by first class rather than by certified mail. In addition, this bill establishes uniform ap- peal procedures which would be applicable to appeals of citations and civil penalties relating to itemized payroll statements, employment of minors, unlicensed contractors, garment manufac- turing and employers uninsured for workers compensation. The bill permits the Labor Commis- sioner, rather than the Director of Industrial Relations, to enter into reciprocal agreements with other federal and state labor law enforcement agen- cies. The bill also makes minor changes in laws relating to the employment of minors in theatrical productions. (As amended 3/7/88) Status: Enacted by the Governor on 5/2/88 (Chapter 96, Statutes of 1988). Effective 1/1/89. WAGE RECORDS SB 2155, Petris (Amends section 226 of the Labor Code): Current law requires employers to maintain certain records relating to employee wages for at least three years and to make the records available for inspection by the employee upon reasonable request. This bill would, in addi- tion, require employers to allow current or former employees to inspect and copy their records, sub- ject to a charge for the actual cost of the reproduction of the records. Urgency measure. (As amended 5/16/88) Status: Enacted by the Governor on 9/12/88 (Chapter 827, Statutes of 1988). Effective 9/12/88. FAILED OR VETOED BILLS AGE DISCRIMINATION AB 2701, Floyd (Amends section 12942, and adds section 12942.5 to the Government Code): Ex- isting law generally requires all employers to permit any able employee, upon giving written notice, to continue emlployment beyond the nor- mal retirement date contained in anly pension or retiremenit plani. Anl exceptioni exists for anl employee who has attainied 65 years of age, who was employed in a bona fide executive or high policy making position for the two-year period imn- mediately before retiremenit, anid who is enititled to immediate nonforfeitable retiremenlt benefits of at least $27,000 per year. This bill would increase the benefit level necessary to qualify for the exceptioni from $27,000 to $44,000. The bill would also make it ani unlawful employmnent practice, unless based upon a bona fide occupational qualification, for an employertodischarge, dismiss, reduce, suspend, demote or transfer, if the transfer results in a reduction in salary or benefits, any employee onl the grounds that the employee has announced his or her intent or desire to retire or terminate employment within six months prior to the employer's action against the employee. (As amended 8/10/88) Status: Failed passage when the Assembly refused to concur in Senate amendments. AIDS AB 3795, Vasconcellos (Amends section 54.1 of the Civil Code, and adds section 12926.1 to the Government Code): This bill would extend to per- sons who have tested positive for the AIDS causative agent or antibodies, but who have not been diagnosed as actually suffering from AIDS or aids related complex (ARC), the protections which apply under current law to physically disabled persons. (As amended 6/23/88) Status: Vetoed by the Governor on 9/30/88. In his veto message, the Governor stated that he was not convinced of the need for the bill because the Fair Employment and Housing Act already protects people with AIDS as physically hand- icapped. He further noted that the Department of Fair Employment and Housing now processes such complaints on a priority basis and is already conducting an AIDS education campaign. CHILD CARE LEAVE AB 2738, Moore (Adds sections 12945.2 and 19702.3 to the Government Code): This bill would make it an unlawful employment practice for anv employer of 25 persons or more at the same loca- tion to refuse to grant a request by any employee with more than one year of conitinuous service and who is eligible for other benefits to take a leave for child rearinig for uLp to a total of four moniths in a 24-month period. Ani employee couLld utilize any accrued vacationi leave or other accruLed E-3 time off during this period or anly other paid time off negotiated with the employer, but anl employer would not otherwise be obligated to pay for child rearing leave. The use of sick leave, however, would require a mutual agreement between the employer and the employee. An employee on child rearing leave would be guaranteed the same or a comparable position upon return from leave. In addition, an employee taking child rearing leave would be allowed to have the period of leave treated as time served with the employer for longevity or seniority under any collective bargain- ing agreement or employee benefit plan. The employee would continue to be eligible for health, retirement, pension and supplemental unemploy- ment benefit plans during the period of leave to the same extent and under the same conditions as apply to unpaid leave taken for any purpose other than child rearing, except that an employer may re- quire the employee to pay health and welfare benefit plan premiums during the period of leave. Employers would be prohibited from taking puni- tive actions against employees in connection with the rights guaranteed under the bill. The bill provides that an employer would not be required to grant parental leave to an employee which would allow the employee and the other parent of the child, if also employed, parental leave totaling more than four months, nor to grant to an employee parental leave for any period of time in which the child's other parent is also taking paren- tal leave. An employer could refuse to grant leave to prevent "undue hardship" to the employer's operations if the the employee is either one of the five highest paid employees or is among the top 10% in gross salary, which ever group is larger, at the specific location. (As amended 8/26/88) Status: Failed passage when the Assembly refused to concur in Senate amendments. SB 1757, Torres (Adds chapter 1.5, commenc- ing with section 280, to part 1 of division 2 of the Labor Code): This bill would require all public and private employers of 15 persons or more to permit an employee to take up to 18 weeks of un- paid leave of absence for birth or adoption of a child and up to 18 weeks of unpaid leave of ab- sence a year for a child's serious health condition. It would require the employee who takes an un- paid leave of absence to be guaranteed his or her existing job or similar position upon returning to work. The bill would also require the employer to maintain health insurance for the employee, but it provides that an employee whose employer pays for health insurance during the leave is obligated to return to work for the same period of time at the end of the leave or repay the employer, on a pro rata basis, the cost of the health insuranice. On or after January 1, 1989, the provisions of the bill would supersede any memorandum of under- standing, collective bargainiing agreement or other contract which contains less generous provisions. The bill would create a right of action for the employee against ani emplover who violates its provisions. (As amended 4/13/88) Status: Died in the Seniate Appropriations Committee. COMMERCIAL BRIBERY SB 1898, Russell (Adds section 641.3 to the Penal Code): This bill would provide that any employee who accepts or agrees to accept any money or thing of value (i.e., a bribe) from any person other than his or her employer, corruptly and without the knowledge or consent of the employer in return for using or agreeing to use his or her position for the benefit of that other per- son, and any person who offers or gives such a bribe, is guilty of commercial bribery. The bill ex- presses the intent of the Legislature that the offer and receipt of good will expenditures to create a more favorable business climate, absent a showing of criminal intent, not be considered commercial bribery. The bill would provide that commercial bribery is punishable by imprisonment in the county jail for not more than one year, if the amount of the bribe is $400 or less, or by imprison- ment in the county jail or in the state prison for two, three, or four years, if the amount of the bribe exceeds $400. (As amended 8/2/88) Status: Died in the Assembly Ways and Means Committee. DISCRIMINATION REMEDIES AB 1163, Moore (Amends sections 12920 and 12970 of the Government Code): Existing law authorizes the Fair Employment and Housing Commission to issue remedial orders in the en- forcement of discrimination laws, including awards of back pay. This bill would authorize the commission to order the payment of actual damages and affirmative or prospective relief to prevent the recurrence of unlawful practices. (As amended 6/20/88) Status: Vetoed by the Governor on 7/8/88. In his veto message, the Governor stated that the provisions of the bill dealing with FEHC authority E-4 to award damages beyond actual lost wages and out-of-pocket expenses would be premature be- cause the issue is currently pending before the Supreme Court. He also indicated his concern that the bill did not include specific guidelines and require FEHC findings before the additional damages could be awarded. AB 2782, Moore (Amends sections 12920 and 12970 of the Government Code): This bill would authorize the Fair Employment and Housing Com- mission to order a respondent in an unlawful employment practice proceeding to pay punitive damages. (As amended 5/5/88) Status: Failed passage on the Assembly Floor. SB 2855, Marks (Adds section 12960.1 to the Government Code): This bill would require the Department of Fair Employment and Housing to give priority to complaints filed by persons who have a terminal illness. (As amended 8/15/88) Status: Vetoed by the Governor on 9/30/88. In his veto message, the Governor stated that the bill is unnecesary because the DFEH already acts under an administrative policy to handle such complaints on a priority basis. DRUG AND ALCOHOL ABUSE AB 330, Klehs (Amends section 113 and adds chapter 5, commencing with section 11998, to part 3 of division 10.5 of the Health and Safety Code): This bill would enact the Substance Abuse Testing Act of 1987. It would require that all initial posi- tive substance abuse test results be confirmed in a certified laboratory by an alternative testing method approved by the State Department of Health Services. The bill specifies the process for laboratories to become certified. The bill would also provide for various employee rights, includ- ing the right to retest a positive substance abuse test sample, and employer and laboratory respon- sibilities relating to utilization of substance abuse testing. (As amended 7/9/87) Status: Died in the Senate Industrial Relations Committee. AB 869, Bates (Adds chapter 1.5, commencing with section 1205, to part 4 of division 2 of the Labor Code): This bill would prohibit employers from making, adopting or enforcing any rule or policy forbidding or preventing employees from engaging or participating in personal relation- ships, organizations, activities or otherwise restricting their freedom of association, unless these relationships, activities or associations have a direct or actual impact on the employee's job per- formance. The bill would also prohibit an employer from demanding, requiring or request- ing an employee or applicant for employment to submit to any blood, urine or encephalographic test as a condition to acquiring or continuing employment. Blood or urine testing would, however, be authorized if: 1. The employer has probable cause to believe that the employee's faculties are impaired on the job. 2. The employee or applicant is or would be employed in a position where impairment presents a clear and present danger to the physical safety of the employee, another employee or to the public. 3. The employer at its expense provides an employee an opportunity to have a sample tested or evaluated and to rebut the result. The bill would prohibit random or company- wide testing. In addition, the bill would require that the testing be designed to ensure that it measures only information regarding chemical substances which are likely to affect the ability of the employee or applicant to perform his or her job duties safely. The bill would not prohibit test- ing for workplace exposure to toxic or unhealthy substances. The bill would create a right of action for damages, attorneys' fees and costs against any person violating its provisions and would permit certain acts to be enjoined. It would provide that, in any action brought against the employer for violation of its provisions, the employer would have the burden of proving that requirements (1) - (3) above have been satisfied. (As amended 3/10/88) Status: Died in the Senate Industrial Relations Committee. SB 1834, Davis (Adds chapter 3.8, commenc- ing with section 1030, to part 3 of division 2 of the Labor Code): This bill would authorize employers to establish Employee Assistance Programs ("EAPs") which may be focused on work site employer-employee concerns including, the prevention, identification, and resolution of health, marital, financial, alcohol, drug, legal, emotional, stress, or other personal concerns which may ad- versely affect employee job performance. The bill would require EAPs to provide confidential problem assessment and referral services. (As amended 8/1/88) E-5 Status: Died in the Assembly Labor and EmploymentCommittee. LABOR COMMISSIONER PROCEDURES AB 623, Floyd (Amends section 93 of the Labor Code): This bill would require the Labor Commis- sioner or deputies or agents to obtain a court order compelling compliance with a subpoena before in- itiating criminal proceedings to punish disobedience to the subpoena. (As amended 5/24/88) Status: Failed passage when the Assembly refused to concur in Senate amendments. SB 890, Bill Greene (Repeals section 64, repeals and adds chapter 4, commencing with section 79, of division 1 of the Labor Code): Among other provisions, this bill would provide that the prevail- ing party would be entitled to court costs and attorney fees for enforcing a judgment for wages. The bill would also require a judgment debtor to disclose the nature and location of any assets to the Labor Commissioner. (As amended 8/26/88) Status: Vetoed by the Governor on 9/30/88. In his veto message, the Governor stated his con- cern that the provision of this bill that mandates the Division to investigate all claims under its jurisdic- tion would remove the discretionary authority of the Labor Commissioner to investigate employee complaints, and would adversely affect the ability of the Commissioner to direct limited resources and establish priorities. The Govemor also noted that the provision authorizing the Labor Commissioner to issue subpoenae has been declared unconstitu- tional on its face by the courts because it does not provide due process safeguards. SB 1778, B. Greene (Amends sections 98 and 98.2 of the Labor Code): Under existing law, an employer who fails to appear or answer a com- plaint before the Labor Commissioner may not be heard on appeal from an adverse decision without justifying or attempting to justify the default before the Commission. This bill would eliminate the re- quirement for first seeking relief from the Labor Commissioner. It would provide instead that an employer may, on the ground that the failure was due to mistake, inadvertence, surprise or excusable neglect within the meaning of section 473 of the Code of Civil Procedure, seek leave from the ap- propriate court to appeal from an order entered after a failure to appear or answer. If leave to ap- peal was granted, the employer could then pursue the appeal on its merits. (As amended 5/9/88) Status: Failed passage onl the Assembly Floor. PLANT CLOSURES AB 621, Floyd: This bill formerly would have prohibited any employer of 50 persons or more at a single worksite fromn reducing operations or clos- ing the worksite unless it gives each affected employee at least 60 days advance written notice. Reducing operations is defined to mean a reduc- tion of at least 25 percent in the number of employees in a three-month period for other than temporary, seasonal or cyclical reasons. The bill now relates to a Firefighter Joint Apprenticeship Program. (As amended 8/29/88) Status: Relevant provisions have been deleted from the bill. While this legislation was pending, however, the U.S. Congress passed and the Presi- dent let become law the federal Worker Adjustment and Retraining Modification Act ("WARN"). In our next Update, we will report fully on WARN and the implementing regulations promulgated by the federal Department of Labor. WAIVER AB 3787, Floyd (Adds section 432.6 to the Labor Code): This bill would prohibit an employer from demanding or requesting, as a con- dition of employment, a written waiver of any right of the employee or applicant to recover damages from the employer or from any third party for physical injury or illness resulting from an industrial accident or from exposure to hazard- ous substances in the course of employment. (As amended 6/22/88.) Status: Vetoed bv the Governor on 9/29/88. In his veto message, the Gov'ernor stated that the bill is unnecessary because current law already provides that waivers of employees rights to recover damages for injuries or physical illness are void. WORKER SAFETY AND HEALTH AB 812, Floyd (Amends sections 6304.1, 6309, 6313, 6319, 6320, 6321, 6352, 6428, 6429, and 6430, addssections6308. 1, 6314.1, 6314.2,6314.3,6314.4, 6314.5, 6314.6, and 6353.5 to the Labor Code): This bill would revise the parameters and timelines for mandatory Cal-OSHA inspections, direct that dis- cretionary inspections be targeted to the most prevalent, injury or illness causing, inspection preventable hazards in the highest hazard in- dustries, and revise the civil penalty structure to E-6 requLire the assessnmenit of at least a miniimum civil penialty in cases of serious, willful, repeat, and failure to abate violations, and to require the maxi- mum civil penalty when such a violation causes serious inljury or death or wheni a false notice of abatemenit is submitted to Cal-OSHA. Status: Died in the Seniate Industrial Relations Committee. AB 2889, Floyd (Amends section 148.6, and adds sections 6319.3 anid 6602.5 to the Labor Code): This bill would prohibit Cal-OSHA from withdraw- ing or amending an action on appeal so as to reduce the seriousniess of a citation or the amount of a civil penalty for a serious or willful violation unless the Division obtains an order of the appeals court. It would require the appeals court to issue such an order only when the Division demonstrates by a preponderance of the evidence either that there is in- sufficient evidence to sustain the action or a material witness is unavailable. (As amended 8/1/88) Status: Died in the Senate Appropriations Com- mittee. WORKERS' COMPENSATION SB 323, Lockyer: This bill has been the focus of activity by the diverse groups interested in revising California's workers' compensation laws. Differing versions have been passed by each chamber of the legislature. The specific provisions, if any, which may emerge from the ongoing deliberative process have yet to be determined, but the issues under dis- cussion include benefit payments, vocational rehabilitation, psychiatric injury, medical evalua- tion, eligibility thresholds, benefit delivery procedures, insurance costs and medical cost con- tainment. Status: Died in conference committee. WRONGFUL TERMINATION SB 1827, Bill Greene (Adds article 3.7, com- mencing with section 2880, to chapter 2 of division 3, and repeals section 2922 of the Labor Code): This bill would repeal existing statutory provisions defin- ing "at-will" employment, and provide instead that a private employer of five persons or more may dis- charge an employee only for just cause, as defined, or if it certifies under penalty of perjury, in a Notice of Discharge, that the employee's continued employ- ment would endanger the health or safety of other employees or the public, or that the employee has engaged in either intentional destruction or sabotage of the employer's property, or willful misconduct. It would require that upon termina- tioin an employer give an employee a Notice of Discharge containing the reasons for discharge and specified other information, including the employee's rights to mediation and arbitration, as provided by the bill. The bill provides that the Department of Inidustrial Relations would ad- minister mediation and arbitration proceedings. The bill would specify requirements for notice, hearing and review of hearing decisions relating to employee discharges. The bill would create an Employee Discharge Proceedings Fund to be funded by employer and employee contributions each amounting to 1/4 percent of an employee's wages. The contributions may be increased up to 1 percent if found necessary by the Director of the Department of Industrial Relations to fund the costs of the bill. (As amended 5/3/88) Status: Died in the Senate Appropriations Committee. SB 2375, Lockyer (Amends section 2922 of the Labor Code): This bill would codify case law which provides, as a matter of public policy, that an employer may not discharge an employee be- cause of the employee's refusal to perform an illegal act at the employer's request. The bill would provide that a discharge in violation of this provision would give rise to a cause of action by the employee against the employer. Status: Died in the Assembly Labor and EmploymentCommittee. E-7 1989 California Labor and Enmloyment Legislative Report by Robert P. Oglesby Legislative Advocate Orrick, Herrington & Sutcliffe This report details bills introduced into the current session of the California Legislature as of February 27, 1989. BANKRUPTCY NOTICE SB 421, Bill Greene (Adds section 2807 to the Labor Code): This bill would require any employer who files for bankruptcy to immediately provide notice of that action to each employee and applicant for employment. Status: In the Senate Committee on Industrial Relations. DISCRIMINATION AB 65, Vasconcellos (Amends section 54.1 of the Civil Code, and adds section 12926.1 to the Government Code): This bill would extend to persons who have tested positive for the AIDS causative agent antibodies, but who have not been diagnosed as actually suffering from AIDS or AIDS Related Complex (ARC), the protections which apply under current law to physically disabled persons. The bill would specify that it does not prohibit an employer from refusing to hire or from discharging an employee who, because of the employee's physical condition, Reprinted with permission E-8 is unable to perform his or her duties, or cannot perform those duties in a manner which would not endanger the employee's health or safety or the health or safety of others. (As amended 2/13/89). Status: In the Assembly Committee on Labor and Employment. AB 127, Floyd (Amends section 12942, and adds section 12942.5 to the Government Code): Existing law generally requires all employers to permit any able employee, upon giving written notice, to continue employment beyond the normal retirement date contained in any pension or retirement plan. An exception exists for an employee who has attained 65-years of age, who was employed in a bona fide executive or high policy making position for the two-year period immediately before retirement and who is entitled to immediate non-forfeitable retirement benefits of least $27,000 per year. This bill would increase the benefit level necessary to qualify for the exception from $27,000 to $44,000. The bill would also make it an unlawful practice, unless based upon a bona fide occupational qualification, for an employer to discharge, dismiss, reduce, suspend or demote any employee on the grounds that the employee has announced his or her intent or desire to retire or terminate employment. Status: In the Assembly Committee on Labor and Employment. E-9 AB 132, Moore (Amends sections 12920 and 12970 of the Government Code): This bill would authorize the Fair Employment and Housing Commission to order a respondent in an unlawful employment practice proceeding to pay actual damages and also to order affirmative or prospective relief. The bill would also make legislative findings and declarations that these remedies are declaratory of existing law. Status: In the Assembly Committee on Labor and Employment. AB 303, Floyd (Adds section 12970.5 to the Government Code, and amends sections 2801 and 2803 of the Labor Code): This bill would authorize the Fair Employment and Housing Commission to assess a civil fine (within defined limits) for each unlawful employment practice committed by a respondent. The bill would also create the California Employment Discrimination Fund into which the Commission would be required to deposit all fines collected and from which the Commission would be required to distribute those fines to complainants. Status: In the Assembly Committee on Judiciary. E-10 FREEDOM OF ASSOCIATION AB 84, Friedman (Adds chapter 5.5, commencing with section 1106, to part 3 of division 2 of the Labor Code): This bill would prohibit an employer from making, adopting or enforcing any rule, regulation or policy which forbids or prevents employees from engaging or participating in personal relationships, organizations, activities or otherwise restricts their freedom of association and would also prohibit an employer from refusing to hire any person on this basis, unless the relationships, activities or associations have a direct or actual impact on the individual's ability to perform his or her job responsibilities. Status: In the Assembly Committee on Labor and Employment. HEALTH CARE AB 350, W. Brown (Adds chapter 2, commencing with section 2500, to part 9 of division 2 of the Labor Code): This bill would enact the Tucker Health Insurance Act of 1989 that would require every employer of five or more persons to provide and pay for specified health care coverage for employees (including certain part time employees). Coverage would begin at the E-l1 earliest time at which coverage can be provided after the employee has been employed for four consecutive weeks. If an employee is prevented by sickness from working and if sick leave benefits are exhausted, the bill would require the employer to continue payments for health care coverage for up to three months. Employers would be authorized to form associations to obtain group rates and coverage and to provide for self-funded employer-sponsored health care coverage. The bill would require any employer who fails to provide health care coverage for employees to pay for the health care costs incurred by an eligible employee. The bill would become operative on the effective date of federal legislation that exempts the bill from preemption by the federal Employee Retirement Income and Security Act of 1974. Status: In the Assembly Committee on Finance and Insurance. HOURS OF WORK AND LEAVE AB 77, Moore (Adds sections 12945.2 and 19702.3 to the Government Code): This bill would make it an unlawful employment practice for any employer of 25 persons or more to refuse to grant a reasonable request for a full-time employee E-12 to take a leave for child rearing for up to a total of four months in a 24-month period. An employee could utilize any accrued vacation leave or other accrued time off during this period or any other paid time off negotiated with the employer, but not sick leave, unless mutually agreed upon. An employee on child rearing leave would be guaranteed the same or a comparable position upon return from leave. In addition, an employee taking child rearing leave would be allowed to have the period of leave treated as time served with the employer for longevity or seniority under any collective bargaining agreement or employee benefit plan. The employee would continue to be eligible for health, retirement, pension and supplemental unemployment benefit plans during the period of leave to the same extent and under the same conditions as apply to unpaid leave taken for any purpose other than child rearing, except that an employer may require the employee to pay health and welfare benefit plan premiums during the period of leave. Employers would be prohibited from taking punitive actions against employees in connection with the rights guaranteed under the bill. The bill provides that an employer would not be required to grant parental leave to an employee that would allow the employee and the other parent of the child, if also employed, parental leave in the aggregate of more than four months, or to grant to an employee parental leave for any period of time in which the child's other parent is also taking parental leave. The bill would not affect existing E-13 collective bargaining agreements until the sooner of 1/1/91 or expiration of the contract. Status: In the Assembly Committee on Labor and Employment. SB 257, Torres (Adds chapter 1.5, commencing with section 280, to part 1 of division 2 of the Labor Code): This bill would require all public and private employers of 15 persons or more to permit an employee to take up to 18 weeks of unpaid leave of absence for birth or adoption of a child and up to 18 weeks of unpaid leave of absence a year for a child's serious health condition. It would require the employee who takes an unpaid leave of absence to be guaranteed his or her existing job or similar position upon returning to work. The bill would also require the employer to maintain health insurance for the employee, but it provides that an employee whose employer pays for health insurance during the leave is obligated to return to work for the same period of time at the end of the leave or repay the employer, on a pro rata basis, the cost of the health insurance. On or after January 1, 1990, the provisions of the bill would supersede any memorandum of understanding, collective bargaining agreement or other contract which contains less generous provisions. E-14 The bill would create a right of action for the employee against an employer who violates its provisions. Status: In the Senate Committee on Industrial Relations. LABOR COMMISSIONER SB 240, Bill Greene (Amends sections 98 and 98.2 of the Labor Code): This bill would provide that the prevailing party in a wage heari,ng would be entitled to court costs and attorney's fees for enforcement of a judgment, require a judgment debtor to disclose the nature and location of any assets to Labor Commissioner and permit the division or Commissioner to amend an order, decision, or award to conform to the legal name of the business or person against whom a claim was brought. Status: In the Senate Committee on Industrial Relations. SB 244, Bill Greene (Amends sections 98 and 98.2 of the Labor Code): This bill would revise the procedure for the appeal of certain decisions by the Labor Commissioner and judicial review of the Commissioner's decisions. E-15 Status: In the Senate Committee on Industrial Relations. SB 426, Alquist (Amends section 3353 of the Labor Code): This bill would provide a procedure for persons to file an application with the Labor Commissioner for a determination that the applicant qualifies as an independent contractor. The bill would require all state agencies to accept the Commissioner's determination and acknowledge the applicant as an independent contractor in the application of all state laws and regulations. Status: In the Senate Committee on Industrial Relations. PERSONNEL AND EMPLOYMENT RECORDS AB 96, Floyd (Amends section 1198.5 of the Labor Code): This bill would give employees the right to receive a complete copy of his or her personnel file upon 10 day's written notice to the employer and would permit the employer to charge a fee for copying the file. Status: In the Assembly Committee on Labor and Employment. E-16 AB 119, Floyd (Amends sections 1174, 1175, and 1197.5 of, and adds section 1174.5 to the Labor Code): This bill would, among other things, require employers to maintain payroll and other employment records for at least three years. Status: In the Assembly Committee on Labor and Employment. SB 383, Bill Greene (Amends section 1174 of the Labor Code): This bill would require employers to maintain payroll records for three years. Status: In the Senate Committee on Industrial Relations. WORKERS' COMPENSATION AB 208, Floyd (Amends section 3602 of the Labor Code): This bill would add an exclusion from the exclusive remedy provisions of the worker's compensation law for instances "(w]here the employee's injury is proximately caused or aggravated by the employer's conduct that exceeds all bounds E-17 usually tolerated by a decent society and where the employer acted deliberately for the purpose of injuring the employee". Status: In the Assembly Committee on Finance and Insurance. WORKER SAFETY AND HEALTH AB 138, Floyd (Amends sections 6304.1, 6309, 6313, 6319, 6320, 6321, 6352, 6428, 6429, and 6430 of, and adds sections 6308.1, 6314.1, 6314.2, 6314.3, 6314.4, 6314.5, 6314.6, and 6353.5 to the Labor Code): This bill would revise the parameters and timelines for mandatory Cal-OSHA inspections; direct that discretionary inspections be targeted to the most prevalent injury or illness causing inspection-preventable hazards in the highest hazard industries; and revise the civil penalty structure to require the assessment of at least a minimum civil penalty in cases of serious, willful, repeat and failure to abate violations, and to require the maximum civil penalty when such a violation causes serious injury or death or when a false notice of abatement is submitted to Cal-OSHA. Status: In the Assembly Committee on Labor and Employment. E-18 AB 167, Floyd (Amends section 148.6 of, and adds sections 6319.3 and 6602.5 to the Labor Code): This bill would prohibit Cal-OSHA (the Division) from withdrawing or amending an action on appeal so as to reduce the seriousness of a citation or the amount of a civil penalty for a serious or willful violation unless the Division obtains an order of the appeals board. It would require the appeals board to issue such an order only when the Division demonstrates by a preponderance of the evidence either that there is insufficient evidence to sustain the action or a material witness is unavailable. Status: In the Assembly Committee on Labor and Employment. AB 189, Floyd (Adds section 61.5 to the Labor Code): This bill would provide that whenever an employee of the Department of Industrial Relations has knowledge or reasonable suspicion that a criminal violation of the Labor Code is taking place or has occurred, the employee must report the information to the appropriate district or city attorney. The bill would also direct every Department employee to cooperate with district or city attorneys in the conduct of civil or criminal investigations. The bill would prohibit any director, division chief, manager or supervisor of the Department from restricting or attempting to restrict the ability of the E-19 Department employee to contact the appropriate law enforcement officials. Status: In the Assembly Committee on Labor and Employment. WRONGFUL DISCHARGE AB 386, Murray (Adds article 3.7, commencing with section 2880, to chapter 2 of division 3 of, and repeals section 2922 of the Labor Code): This bill would repeal existing statutes concerning "at will' employment. The bill would instead provide that employers of five or more may discharge an employee only for just cause. "Just cause" is defined to include, but not be limited to, (1) excessive absenteeismi or tardiness, (2) loafing or sleeping on the job, (3) leaving work without permission, (4) fighting, insubordination, using profanity, or abusive language to supervisors or other employees, (5) falsifying records, (6) theft or dishonesty, (7) incompetence, gross negligence, or carelessness, (8) gambling, and (9) possession or using drugs or alcohol at work, or reporting to work under the influence of alcohol. The bill would provide procedures for termination and for mediation and arbitration by the Department of Industrial Relations of disputes in regard to termination. The bill E-20 would, however, authorize an employer to immediately discharge an employee when it is certified under penalty of perjury, that the employee's continued employment would seriously endanger the health or safety of other employees or the public or that the employee has engaged in either intentional destruction or sabotage of the employer's property or willful misconduct. The bill would establish the Employees Discharge Proceedings Fund that would be comprised of employee and employer contributions each in the amount of 1/4 of 1% of an employee's wages. Status: In the Assembly Committee on Labor and Employment. SB 115, Rosenthal (Adds section 2922.5 to the Labor Code): The bill would prohibit an employer from asking any employee or applicant for employment to sign any agreement that would specifically permit the employer to dismiss the employee for any reason, or no reason at all. The bill would permit such an agreement to be included and enforced in any contract bargained for collectively and would provide that any agreement made in violation of the bill as void and unenforceable. Status: In the Senate Committee on Judiciary. E-21 SB 181, Torres (Adds section 2922.5 to the Labor Code): This bill would specifically authorize an employee to bring an action in tort against an employer for a bad faith discharge of the employee if the employer breaches an implied covenant of good faith and fair dealing with the employee. Status: In the Senate Committee on Judiciary. SB 222, Beverly (Adds article 3.7, commencing with section 2880, to chapter 2 of division 3 of the Labor Code): This bill would provide that employment may be terminated at the will of either the employer or the employee for any reason deemed sufficient by that party, except as provided by this bill, and would provide that this bill would preempt all other rights and causes of action seeking redress for discharges or other employment-related personnel actions, with specified exceptions. This bill would determine a discharge to be wrongful if the court finds any of the following: (1) the employer's discharge of the plaintiff was in retaliation for the plaintiff's refusal to violate public policy or was in retaliation for reporting to appropriate public officials a violation of public policy; (2) the court finds that the employer's discharge of the employee occurred without a good faith belief by the employer that good cause existed to justify the termination; the employee has worked for the E-22 employer for at least 1,000 hours per year for 5 or more consecutive years; and the plaintiff, at the time of discharge, was receiving total remuneration of less that $100,000 per year, or (3) the court finds that the employer's discharge of the employee occurred without just cause, the employee had worked for the employer for at least 1,000 hours per year for 3 or more consecutive years, and the plaintiff, at the time of discharge, was receiving total remuneration of less than $15,000 per year. In addition, the bill would provide that the terminated employee would have the burden of proof on each issue. This bill, among other things, would specify the equitable relief that the court may order if the employer has committed a wrongful discharge, and would permit the parties to agree voluntarily to resolve wrongful discharge disputes by final and binding arbitration. The bill would require an employee to request to mediate with the State Mediation Service prior to the initiation of any lawsuit or arbitration, would make a lawsuit or arbitration subject to stay pending the mediation process upon request of the employer, would establish the procedures for the mediation process, and would make any resolution of the dispute between the employee and the employer final and binding upon the parties. Status: In the Senate Committee on Judiciary. E-23 SB 282, Bill Greene (Adds article 3.7, commencing with section 2880, to chapter 2 of division 3 of, and repeals section 2922 of the Labor Code): See AB 386, described above. Status: In the Senate Committee on Judiciary. SB 324, Bill Greene (Amends section 1102.5 of the Labor Code): This bill would prohibit an employer from retaliating against an employee for disclosing a violation of a state or federal statute, or a violation or noncompliance with a state or federal regulation, to the employer. Status: In the Senate Committee on Industrial Relations. E-24 State labor legislation enacted in 1988 Recent legislative trends continued with significant laws enacted in a wide array of labor standards areas including minimum wage, mandatory retirement, AIDS testing, and parental leave RICHARD R. NELSON State labor legislation enacted in 1988 covered a wide variety of employment standards subjects and included several significant new laws.t The year was also notable for several important general election ballot initiatives. Among these measures addressed were both traditional labor standards fields such as minimum wage and child labor protection and bans on mandatory retirement and other forms of employment discrimination, and the newer subjects of workplace AIDS and drug testing, parental leave, and asbestos abatement.2 Wages Minimum wage continued as a major issue in 1988 with new legislation or wage orders increasing mini- mum rates in Guam, Kansas, Maine, Pennsylvania, Rhode Island, South Dakota, Vermont, the Virgin Is- lands, the District of Columbia for employees in hotel and restaurant occupations, and Puerto Rico for employees in the hotel and construction industries. An additional seven States had rate increases in 1988 as the result of prior legislation. Also, an initiative on the Washington State ballot in the November general election to provide for an increase in the State rate and to extend coverage to farm- workers and domestic service employees was approved by the voters. The trend in recent legislative and administrative ac- tions has been to increase rates above the $3.35 per hour Federal standard in effect since 1981; in fact, the District Richard R. Nelson is a State standards adviser in the Division of State Employment Standards Programs, Office of State Liaison and Legislative Analysis, Employment Standards Administration, U.S. Department of Labor. David Levy, also an adviser in the division, contributed so the article. Reprinted from Monthly Labor Review, January 1989, 40-58. of Columbia; Maine, Rhode Island, and Vermont which had already surpassed the Federal level, adopted even higher rates. Fifteen jurisdictions now exceed the Federal rate for some or all employees (this number will rise to 16 on February 1, 1989 when the Pennsylvania increase be- comes effective), with the highest rates being $4.25 an hour in Califomia, Connecticut, and the Virgin Islands; $4.00 an hour in Rhode Island and in Puerto Rico for office, supervisory, and skilled workers in the construc- tion industry; and from $3.50 to $4.85 an hour in the District of Columbia, depending on the industry.3 Bills to increase the Federal minimum wage were re- ported out of committee in both the House and Senate in 1988. However, neither bill reached a floor vote. In addition to the rate increase in Maine, the State minimum will now automatically match increases in the Federal minimum wage up to $5 per hour instead of $4 per hour as before. Other minimum wage and overtime changes included: repeal of an exemption from the Kan- sas law for persons age 60 and older who work on an occasional or part-time basis; elimination of a provision in the Vermont law which had permitted payment at a lower rate for employees working for an employer for less than 90 days; and elimination, in Wyoming, of the daily over- time pay requirement for laborers, mechanics, or workers on public works projects. Employees who receive tips in Minnesota are now entitled to the same minimum cash rate from the employer as those who do not earn tips. The Arizona equal pay law, previously applicable to private sector employers, will now also apply to State employers and employers of political subdivisions which receive State tax monies. The Nebraska wage payment E-25 and collection law was extended to apply to political sub- divisions, and in Rhode Island, the wage payment law was amended to require employers to pay employees returning from layoff the same wages earned before separation. Em- ployees in Louisiana may now bring civil action to enforce the payment of the undisputed portion of any wages due, and in Oklahoma, civil court actions by employees or their representatives to recover unpaid wages and liqui- dated damages are no longer limited to $1,000 per claim. Following unsuccessful efforts in each of the last few years, the Louisiana prevailing wage law was repealed, continuing a trend which has seen the repeal of nine such laws since 1979.' Efforts to enact repeal measures failed in Indiana, Massachusetts, and Oklahoma in 1988, and an effort to enact a law failed in Kansas. In addition, Massa- chusetts voters in November defeated a ballot initiative which sought repeal of the State's prevailing wage law. Thirty-two States currently have these laws which specify that wage rates paid on publicly funded construction proj- ects be not less than those prevailing in the locality. In court action, the Illinois State Supreme Court reversed lower court decisions by holding that it is outside the grant of home-rule power for home-rule units to exclude themselves from coverage of the State prevailing wage law. Parental leave States continued to take the lead in leg- islation addressing the subject of parental leave. A new law in Maine requires private sector employers and local government with 25 or more employees and the State to grant up to 8 weeks of unpaid family medical leave in any 2 years for the birth or adoption of a child, or for the serious illness of the employee, child, parent, or spouse. In Wisconsin, employers of 50 or more workers in the pri- vate sector and the State government, must provide unpaid family or medical leave of up to 6 weeks for the birth or adoption of a child; 2 weeks to care for a child, spouse, or parent with a serious health' condition; and 2 weeks personal medical leave within a 12-month period. In both cases, employees returning from such leave are entitled to reinstatement in the same or equivalent posi- tion without loss of benefits. (The legislature in Hawaii requested a study of the feasibility of enacting such a statute.) Federal parental leave measures were reported out of committee in 1988, but failed to achieve final consider- ation. Among related provisions, employers in Colorado who permit paternity or maternity time off for the birth of a child, and who provide other benefits such as job guaran- tee or pay, must offer the same opportunities for adoptive parents; health and insurance benefits of State employees in Massachusetts, who are granted parental leave to care for a child under 3 years of age, must be continued for the period of leave, with the employee paying that portion of the premium normally deducted from the employee's sal- ary; and public and private sector employers in Wash- ington must allow an employee to use accrued sick leave to care for a minor child who has a health condition that requires treatment or supervision. Child labor. Child labor amendments addressed a vari- ety of youth employment issues. A growing concern was reflected in a New Hampshire enactment where, as part of a literacy and school dropout prevention program, the Youth Employment Law was amended to limit the school-week work hours of 16- and 17-year-olds and a committee was created to examine, among other things, the relationship between the number of hours per week that a student works or participates in sports and the student's academic achievement. In other significant de- velopments, monetary penalties were substantially increased for child labor violations in Wisconsin; in Rhode Island, authority to declare places or occupations as hazardous for minors under 16 years of age was trans- ferred from the Department of Health to the Department of Labor; and in Michigan, new regulations were issued making hazardous occupation provisions more detailed and more consistent with Federal standards and requiring closer supervision of minors in the workplace. Among other enactments, the Georgia child labor law was amended to permit the Commissioner of Labor to seek a court order enjoining a violator of the law from employing the minor involved in the violation. A separate Georgia measure permits children under age 16 to be employed during school vacations in the maintenance of lawns on the grounds of factories or businesses where employment within the establishment would be prohib- ited, and minors under age 16 in Maine will now be permitted to work in retail sales, customer service opera- tions, or office work in otherwise prohibited places of employment, such as factories, provided the work is per- formed in a separate room. Night work hours were extended somewhat for minors under age 16 in Massachu- setts and New Jersey. The New Jersey law was also amended to permit minors 15 years of age or older to work as cashiers or baggers near cash register conveyor belts. Children under 7 years of age may now receive theatrical employment permits in the District of Colum- bia, and children working as actors or performers in Vermont may now be employed after midnight with the consent of a parent and the Commissioner of Labor and Industry. Discrimination. The age 70 upper limit for protection from age discrimination or mandatory retirement provi- sions was removed for both private and public sector employees by amendments to laws in Idaho, Kansas, South Carolina, and Tennessee, and for various public sector employees by amendments in Arizona, the District E-26 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 of Columbia, and Maryland. Maryland also enacted a law requiring that a prohibition against employment discrimi- nation based on age be included in the required nondis- crimination clause in all State procurement contracts. In Massachusetts, certain groups of State and municipal public safety employees may now work beyond age 65 with annual certification. Some of this State activity was likely in response to Federal Age Discrimination in Em- ployment Act amendments, effective January 1, 1987, which included removal of the age-70 upper limit on cov- erage in private and public sector employment. A comprehensive human rights law was enacted in Louisiana prohibiting discrimination by private and pub- lic employers and apprenticeship and training programs on the basis of race, creed, color, religion, sex, age (for those 40 to 70 years), or national origin. In Oklahoma, a new Fair Employment Practices Act, applicable to em- ployees of the State, permits State agencies to use optional hiring procedures to hire qualified women and minorities. Among other laws addressing the various forms of em- ployment discrimination, the discrimination against physically or mentally handicapped persons by public and private sector employers was prohibited by a new Handi- capped Persons Employment Protections Act in Dela- ware and by an amendment to the Idaho Human Rights Act. Both of these laws require employers to make rea- sonable accommodation in the workplace to a worker's disability. Employee testings. The highly controversial testing of employees, either for drug or alcohol abuse or for the presence of AIDS virus (HIv) antibodies continued to be the subject of proposed legislation in several jurisdictions. Drug testing legislation was enacted in Nebraska, Kansas, and Tennessee. In Nebraska, public and private employ- ers of 6 or more may require employees to submit to drug or alcohol testing under penalty of dismissal or other dis- ciplinary or administrative action for refusal to be tested. Kansas authorized establishment of a drug screening pro- gram for persons taking office as governor, lieutenant governor, or attorney general and for those applying for safety sensitive positions in State government, and De- partment of Correction security personnel in Tennessee may be tested upon reasonable suspicion that an em- ployee's faculties are impaired on the job and that a danger exists because of the impairment. Laws prohibit- ing employers from requiring a test for the presence of an AIDS virus infection as a condition of employment and from discriminating in employment on the basis of a posi- tive test were enacted in Florida, Iowa, Rhode Island, and Vermont. Private employment agencies. Laws affecting the regula- tion of private employment agencies were enacted in eight States. Among the more notable were a New York amendment exempting employer fee-paid agencies from registration requirements and reducing maximum appli- cant-paid fees, and an amendment to the Oklahoma regulatory law limiting coverage to agencies charging a fee to job applicants rather than those charging fees to either applicants or employers. In Illinois, a new Job Re- ferral and Job Listing Services Consumer Protection Act requires firms offering such services to maintain job and listing authorization records, to furnish jobseekers with information on fees and other facts about the prospective employment, and to refund fees if suitable employment opportunities are not furnished. The firms are prohibited from engaging in specified false or deceptive practices. Safety and health. Again in 1988, as in recent years, most of the legislation dealing with worker safety and health concerned the right of workers to be informed of and given training on chemical hazards in the workplace, asbestos abatement, and restrictions on workplace smok- ing. New comprehensive right-to-know laws were enacted applicable to agencies of the Government of Guam and to public sector employers in Georgia. Both laws provide for notification to employees of hazardous substances in the workplace and for safety training. Of the remaining right- to-know laws, half were amendments incorporating provisions required by the Federal Emergency Planning and Community Right-to-Know Act of 1986. In related court action, a provision of the Massachusetts law, limit- ing the disclosure of information about the presence of hazardous substances in the workplace to those autho- rized to receive it, was declared unconstitutional as an unwarranted restriction on freedom of speech. Four of the 12 asbestos abatement enactments were amendments made specifically in order to meet the State's contractor certification responsibilities under the Federal Asbestos Hazard Emergency Response Act of 1986.3 Other enactments provided for regulation of various as- pects of this work, including the certification or licensing of contractors, safety training of workers, and notification to employees of the presence of asbestos. New Hampshire provided for granting licenses to persons licensed by other States with substantially equivalent standards. Since January 1, 1988, persons in Massachusetts who smoke any tobacco products may not be employed as uniformed members of the State Police, or in other speci- fied State employment, and may not continue in their jobs if they subsequently smoke tobacco. Other safety enactments included: in Suffolk County, New York the first law providing employee protection against possible dangers of video display terminal use; a new Amusement Rides and Amusement Attractions Safety Act in West Virginia; and laws dealing with coal mine and boiler safety. In California, voters in November approved a ballot initiative to restore the State's private sector job safety and health program. E-27 Other legislation. Federal legislation requires employers of 100 employees or more to provide 60 days' advance notice of plant closings and layoffs, with recourse through civil suits filed by affected employees, labor unions, or the communities in which a layoff or shutdown has taken place. State legislation in this area also continued, with a law enacted in Tennessee providing that upon notifying workers of a major layoff, plant closure, or relocation, employers of 50 or more full-time employees are to notify the State Government of the circumstances of the reduc- tion in operations and the number of employees affected. Other State efforts to lessen the impact of a plant closing, relocation, or major reduction in operations included: continuation, for 1 year, of a New York program to assist workers (terminated from employment because of a layoff involving 50 workers or more) with the payment of health insurance premiums; extension of coverage (to employees who lose their jobs because of a workplace closing or permanent work force reduction) of a Rhode Island law entitling involuntarily laid-off employees to continue group hospital, surgical, or medical insurance coverage by payment of premiums at the group rate; and funding for a business and job retention program in Washington. Six States enacted or amended whistleblower laws de- signed to protect employees from employer retaliation for reporting violations to a public body, or for participating in an investigation, hearing, or court action. Such new laws were enacted in Ohio, applicable to both private and public employers, in West Virginia applicable to public sector employees, and in Illinois, limited to operators of licensed child care facilities. Other significant enactments included a law in New Jersey requiring apparel industry manufacturers and con- tractors to register annually with the Department of Labor as a condition of doing business in the State; a universal health-care law in Massachusetts designed to provide basic health insurance for every resident by 1992 including the employed, those receiving unemployment benefits, and all others not enrolled in health insurance plans; a construc- tion contractor registration law in Iowa under which only registered contractors will be eligible to be awarded State contracts; a provision for mandatory rest breaks in Minne- sota; and authorization to negotiate fair share fee agree- ments under the Pennsylvania Public Employee Relations Act. In the November general election, Oklahoma voters approved a ballot initiative making the office of the Com- missioner of Labor an elected rather than an appointed position. A Federal court of appeals affirmed in large part a lower court ruling that several provisions of the Texas mass picketing law are unconstitutional. The Employee Polygraph Protection Act of 1988, en- acted at the Federal level, prohibits most private sector employers, with certain exemptions, from using any form of lie detector tests either for pre-employment screening or during the course of employment. The following is a summary, by jurisdiction, of labor legislation enacted during 1988. Alabama impose mandatory affirmative action ployers of 20 or more and the hiring Other laws. Municipal corporations are to measures upon a finding that such agency practices of each. Otherolawe Mufenicip corporations ardel has violated the State affirmative action A resolution requested the Governor to ror employees who are sued or dmages plan or its program. The Office may also direct the Commissioner of Labor to initi- arising out of the pesfornance of thd r require reversal of discriminatory person- ate a public awareness and promotional official duties and while operating a mo- nel actions and require agencies to change campaign to encourage private industry tor vehicle or equipment in the course of selection procedures that violate State or to hire State residents and to contract their employment, provided the acstion of Federal law. Also, a provision was ad- with State businesses for projects located the employee was not intentional or will- opted requiring that collective bargaining in the State. ful or wanton. agreements under the Public Employ- ment Relations Act be consistent with Other laws An employer may not dis- Maska principles of equal employment opportu- charge, threaten, or take other adverse Equal employment opportunity. A prohi- nity and affirmative action. action against an employee because he or she receives or responds to a summons for bition against race discrimination in* employment conditions of public educa- Labor relations The public teacher nego- jury service, serves as a juror, or attends tion employees wascadded tofa preexisting tiation law was amended to extend col- court for prospective jury service. Em- tion employees was added to a preexisting ~~ployers are not required to pay employees law which already banned sex discrimina- lective bargaining rights to noncertified for time spent in such service. tion in public education and, under which school board employees. the Board of Education is empowered to Arizona withhold State funds from a school dis- Preference In an exception to confidenti- Wages The equal pay law was extended trict or area for failure to comply with ality requirements, the Department of to apply to State employers and employ- nondiscrimination requirements. This Labor is to publicly disclose data, that is ers of political subdivisions which receive public education law supplements the contained in employment security re- State tax monies, aside from private-sec- State's Human Rights Act of general ap- cords, on the residency of employees tor employers as before. plication, which bans race and sex hired by employers, in order to encourage discrimination, among other types. employers to voluntarily consider the Equal employment opportunity. The re- The Office of Equal Employment Op- availability of qualified jobseekers in the quirement that members of the State portunity was authorized to suspend the State. A report is to be issued disclosing retirement system retire at the age of 70 hiring authority of a State agency and to the names of all public and private em- was removed. Previously, employment E-28 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 past age 70 was pernitted only upon ap- proval of individual annual requests. Background clearance. Beginning July 1, 1989, child care personnel must register with the Department of Health Services in order to work in a certified day care group home. A fingerprint check for purposes of conducting a background screening will be a condition of registration. Persons employed under contracts with the Supreme Court or the Department of Corrections to provide services to juve- niles must be fingerprinted as a condition of employment prior to the performance of any services involving direct contact with juveniles. Persons convicted of or awaiting trial on specified criminal charges includ- ing murder, kidnapping, and sexual abuse, are prohibited from such work. Occupational safety and health An emer- gency planning and community right- to-know act was approved, establishing a State Emergency Response Commission whose duties include carrying out the State's requirements under the Federal law. Requirements were established for comprehensive and facility emergency re- sponse plans, emergency notification of reportable releases of extremely hazard- ous substances, and for the reporting of hazardous chemicals and substances stored, handled, or processed in a facility as required by Fedeal law. Preference. Contractors, who are licensed in the State and who have paid State or county taxes within the State for at least 2 consecutive years immediately prior to submitting a bid, may now receive a pref- erence on public works contracts regard- less of the location of their home office. Arkansas Wages By prior legislation, the State min- imum wage rate was increased from $3.25 per hour to $3.30 on January 1, 1989. California Wages By prior action of the Industrial Welfare Commission, the basic minimum wage rate was increased from $3.35 an hour to $4.25 on July 1, 1988. In order to expedite the establishment of State residents' eligibility under the Federal Immigration Reform and Con- trol Act, the law requiring employers to maintain specified payroll records and to make them available for inspection by employees, was amended to apply to both current and former employees, and to provide the right to inspect and copy such records. Employers are authorized to take reasonable steps to assure the identity of current or former employees. Agriculture. The surety bond required of farm labor contractors was increased from $5,000 to $10,000 and may now be used to pay for interest on wages and for any damages arising from violations of or- ders of the Industrial Welfare Commis- sion. The separate fund maintained by the Labor Commissioner from a portion of the license fees to pay persons damaged by a licensee when the damages exceed the bond limits may now also reimburse persons damaged by unlicensed farm la- bor contractors. Licensees subject to two or more final court judgments for failure to pay wages due farm employees in a 5- year period will have their licenses suspended for I year. Also, persons oper- ating as farm labor contractors after their license has been suspended or revoked are now subject to fines of from $1,000 to $5,000 and/or imprisonment of 6 months to 1 year. The Department of Housing and Com- munity Development and local jurisdic- tions assuming enforcement of housing standards and permits for labor camps are to submit an annual report on labor camps for the legislature including the number and location of such camps, those found operating without permits, and data on in- spections, complaints, violations, and staff hours dedicated to implementing the Em- ployee Housing Act. Undocumented workers The law prohib- iting the knowing employment of aliens not entitled to lawful residence in the United States if such employment has an adverse effect on lawful resident workers was repealed. (This inoperative law had previously been preempted by the Federal Immigration Reform and Control Act of 1986.) Equal employment opportunity. A perma- nent Limited Examination and Appoint- ment Program was established under the State Personnel Board, replacing an exist- ing demonstration project. The program is to provide an alternative to the traditional civil service process to facilitate the hiring of persons with disabilities in the State civil service. Employee testing. In the November gen- eral election, Proposition 102 which would have, in part, repealed the prohibi- tion on use of AIDS virus tests for employ- ment or insurability was defeated. Occupational safety and health. Proposi- tion 97, on the November general election ballot, was approved requiring restoration of the California Occupational Safety and Health Administration (CAL/OSHA) pro- gram in the private sector which was eliminated in the Governor's 1987-88 budget by use of his line-item veto author- ity. The program operated under a State plan in accordance with Federal law. With withdrawal of the State funding, the Fed- eral Occupational Safety and Health Administration reinstituted concurrent Federal enforcement over private sector employment in California; the State has continued to enforce in the public sector. The Contractors' State License Board may not issue the certification required for asbestos-related work unless the contractor is registered with the Division of Occupa- tional Safety and Health of the Department of Industrial Relations. Beginning on July 1, 1989, uncertified and unregistered con- tractors are prohibited from advertising asbestos removal services. The owner of any building having asbes- tos-containing construction materials is to provide notice to all his or her employees working within the building of the exis- tence, location, and potential health risks of the materials and general procedures and handling restrictions necessary to pre- vent or minimize disturbance, release, and exposure to the asbestos. Reinspection of a place of employment, by the Division of Occupational Safety and Health, will not be required if the safety or health violation is abated at the time of the initial inspection or investigation. A joint resolution was adopted urging the Congress to amend the Emergency Planning and Community Right-to- Know Act of 1986 to permit those States with similar laws, enacted prior to the Federal Act, discretion in carrying out the procedural or administrative require- ments of the Federal act without lessening its protections of the public health and safety. A concurrent resolution was adopted asking that the Ad Hoc Advisory Commit- tee on Video Display Terminals, estab- lished in 1987 to study the necessity for video display terminal related health and safety standards, report back to the Cali- fornia Occupational Safety and Health Standards Board with proposals by May 1, 1989. Whistleblower. The law protecting State government employees from any act of re- prisal, retaliation, coercion, or similar act for having disclosed improper government activities to designated authorities, was amended to extend coverage to employees of the University of California. The law protecting employees from be- ing deprived or from an attempt to deprive them of lawful employment because of any past, current, or potential appearance as a witness before any legislative committee, was amended to also make it a misde- E-29 meanor for an employer to, directly or ing, sending applicants to places where Occupational safety and health. A State indirectly, harass any such employee. labor disputes exist without informing Emergency Response Commission was them, and failing to refund fees when re- established to implement the provisions ol Other laws A new provision was enacted quired by law. Agencies convicted of the Federal Emergency Planning and to regulate the activities of foreign labor misdemeanors under this law must file a Community Right-to-know Act of 1986. contractors engaged in providing employ- $20,000 surety bond with the Department The Commissioner of Environmental ment services including procuring or of Labor and Employment prior to con- Protection is to receive, process, and man- arranging employment, transportation, ducting business after the conviction. The age chemical information and notif- housing and other living accommodations State employment agency licensing law ications made pursuant to that act. for nonagricultural foreign workers for a was repealed in 1983. fee. Such contractors must enter into Employment and training. A commission written contracts with foreign workers in Connecticut on a Connecticut Partnership Compact their primary language, including all ma- Wages By prior law, the minimum wage was established, including the Commis- terial terms, and are prohibited from rate was increased from $3.75 to $4.25 an sioners of Economic Development and engaging in specified practices. Violations hour on October 1, 1988. Labor and legislative, business, labor, and constitute a misdemeanor, and aggrieved public members. The commission is to persons may bring an action for injunc- Worker privacy. A public agency receiv- hold public hearings, and by March 1, tive relief and damages. ing a request to inspect or copy personnel 1989, adopt a partnership compact con- The Education Code now authonzes or other employee records, the disclosure taining standards of participation for teachers to require that the parent or of which it believes to legally constitute corporations in areas including policies guardian of a pupil, who has been sus- an invasion of privacy, must now notify affecting employees such as health bene- pended for certain specified disruptive the employee's collective bargaining rep- fits, education and job training, affirm- behavior, attend a portion of a school day resentative, if any, of the request as well ative action and fair pay standards, and in his or her child's or ward's classroom, as the employee. The collective bargain- fair labor practices. Other considerations Employers are not to discharge, threaten ing representative, in addition to the for participation include policies forsafety, to discharge, or take any other retaliatory employee may now file a written objec- environmental protection, and community action against a parent or guardian for tion to the dismlosure a relations (including hiringand job training such absence from work. to benefit local residents). Amendments to the State temporary disability insurance laws require employ- Eualemployment opportunityk Beginning Delaware ers to give each employee leaving work April 1 1989, public works contractors Equal employment opportunity The Hand- due to pregnancy or nonoccupational with 50 or more employees awarded con- icapped Persons Employment Protections sickness or injury a notice informing tracts of between $50,000 and $250,000, Act was approved. This act is applicable to them ofthedisability insurance rightsand must develop and submit an affirmative private sector employers of 20 or more, the benefits to which they are entitled. action plan for approval by the Commis- State and political subdivisions, employ- sion on Human Rights and Opport- ment agencies, unions, and training pro- Colorado unities. Failure to develop an approved grams. Employment discrimination against Hours The legislature approved for con- plan will result in ineligibility for future qualified physically or mentally handi- sideration by the voters, at the November contracts. In addition, contractors on capped persons is prohibited, and reason- general election, a proposed constitutional projects costing more than $250,000 must able accommodation must be made in the amendment authorizing the legislature to have an affirmative action plan approved workplace to enable a handicapped person establish exceptions to the maximum 8- after a bid has been accepted but before to satisfactorily perform the essential hour workday in underground mines and the award of a contract on such a project- duties of the job. Enforcement of the law is workings, blast furnaces, smelters, ore re- All public works contractors and subcon- vested in the Department of Labor and the duction works, and other industries consid- tractors must file compliance reports with Review Board established under the Fair ered injurious or dangerous. The measure, the Commission including information Employment Practices Act. Constitutional Amendment number 4, was such as employment policies, programs, approved by the voters. and statistics. Violation of the antidis- Labor relations A merger, consolidation, crimination or affirmative action require- sale of assets, or business combination Parental leave, Employers who permit pa- ments will result in a partial withholding may not result in the termination or im- ternity or maternity time offfor the birth of of contract funds in addition to barring pairment of negotiated labor contracts a child, and who provide other benefits the contractor from future State-funded until their termination date or until other- such as job guarantee or pay, must offer projects. wise agreed to by the parties to the con- the same opportunities for adoptive par- tract or their legal successors. ents. Employers may not penalize employ- Labor relations A provision was enacted ees for exercising their rights to such leave. stating that no employee is to be denied Occupational safety and health. The Di- the right to pursue, in court, a cause of rector of the Division of Boiler Safety or Private employment agencies The part of action arising under the State or Federal designee is now authorized to obtain and the criminal code dealing with fraudulent constitution or under a State statute execute administrative inspection war- and deceptive sales and business practices solely because the employee is covered by rants and to shut down unsafe boilers and by employment agencies, was amended to a collective bargaining agreement. This pressure vessels. specifically apply to employment counsel- right will not apply to actions brought for ors who represent that they can supply breach of any provision of a collective District of Columbia employers or available jobs, and to job bargaining agreement or other claims de- Wages The basic minimum wage for ho- listing firms. Several undesirable practices pendent upon the provisions of such an tel, restaurant, apartment building, and were prohibited including false advertis- agreement. allied occupations was increased from E-30 r I I MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 $3.80 an hour to $4.75, effective October 10, 1988, by adoption of a revised wage order. The order increases the maximum tip credit allowance from $1.95 per hour to $2.60, and the minimum wage rate for employees under age 18 from $3.35 to $4.30 per hour. Adult learners age 18 or over who have been employed in the in- dustry for not more than 90 calendar days may be paid $4.45 per hour for the first 30 calendar days of employment with an em- ployer. Child labor. Children under 7 years who were previously prohibited from receiving theatrical employment permits, will now be permitted to receive them. New safe- guards for the younger children include separate maximum work hours restric- tions for infants under age 6 months, for those between 6 months and 30 months, and for those between 30 months and 7 years. A nurse with pediatric experience is to be provided for each 3 or fewer in- fants under the age of 30 months. Equal employment opportunity. Public school teachers are no longer required to retire at age 70. Florida Wages Among restitution provisions in a new Victim's Rights Act of 1988, deduc- tions from a defendant's income may be ordered by the court for restitution to the crime victim. Payor of the income may not take disciplinary action against an employee because of enforcement of such an order. Hours Intrastate commercial motor vehi- cle operators may now drive 15 hours in any 24-hour period, instead of 12 of the first 15 on-duty hours, before a required 8-hour rest period. Such drivers may not be on duty more than 72 hours in 7 con- secutive days, except that carriers op- erating every day may permit drivers to remain on duty for up to 84 hours in any period of 8 consecutive days. The weekly limit does not apply to persons transport- ing unprocessed agricultural products from place of harvest. Agriculture Farm labor contractors must now furnish, upon the request of an em- ployee who is applying for amnesty under the Federal Immigration Reform and Control Act of 1986, copies of all payroll records concerning such employee. Con- tractors are prohibited from making any false, fraudulent, or misleading represen- tation as to the performance of seasonal agricultural work by any person. Employee testing. Unless there is a bona fide occupational qualification, employers may not require AIDS testing as a condi- tion of hiring, promotion or continued employment, nor can employers refuse to hire, discharge, or otherwise discriminate against an employee with respect to com- pensation, terms, conditions, or privileges of employment on the basis of the results of an AIDS test. Background clearance. The courts or the Department of Law Enforcement may now refer to and disseminate information contained in sealed criminal history re- cords if the subject of the record is seek- ing employment, licensing, or a contract involving a sensitive position with direct contact with children, the developmen- tally disabled or the aged or elderly, or employment or licensing involving teach- ing or child care. Occupational safety and health. A Hazard- ous Materials Emergency Response and Community Right-to-Know Act was ap- proved in order to carry out the State's responsibilities under the Federal Emer- gency Planning and Community Right-to- Know Act of 1986. Federal requirements such as the furnishing of information and providing notification were adopted by ref- erence, and penalties were established for violations. Among amendments to the law regulat- ing asbestos abatement projects, persons engaged in monitoring and evaluating such projects must now be licensed. Specific training courses are now required of asbes- tos consultants, contractors, surveyors, management planners, and project moni- torm The Department of Labor and Em- ployment Security was authorized to take disciplinary action, including imposing ad- ministrative fines and sanctions, against asbestos surveyors for certain offenses. Other laws Among changes in the dis- placed homemaker act, the Department of Health and Rehabilitative Services is now directed rather than authorized to enter into contracts with, and make grants to, public and nonprofit private entities for purposes of establishing multipurpose ser- vice programs. It is to develop a 3-year State plan for the displaced homemaker program (to be updated annually) which will assess program needs and goals and make recommendations. A trust fund was established to be used by the Department for administration of the program, funded by additional fees on marriage license ap- plications and dissolution of marriage filings. Georgia Child labor. The child labor law was amended to permit the Commissioner of Labor to seek a court order enjoining any person, firm, or corporation in violation of the law from employing the minor in- volved in the violation. Also, obsolete provisions were repealed pertaining to physical examinations for 15-year-olds, maximum hours of employment of cer- tain minors under age 18, and prohibition on corporal punishment of minors by em- ployers. The prohibition on work by minors un- der age 16 in dangerous employment will not apply to those 14 years of age or over employed during school vacations in the care and maintenance of lawns, gardens, and shrubbery including the operation of equipment in connection with the work, provided the minor furmishes the em- ployer with an employment certificate and is covered by the employer's accident and sickness insurance plan. Such work will be permitted on the grounds of mills, factories, or businesses where employ- ment within the establishment would be prohibited. Private employment agencies. As the re- sult of previously enacted legilation, the employment agency regulatory law was repealed as of June 30, 1987. Occupational safety and health. A compre- hensive new Public Employee Haardous Chemical Protection and Right to Know Act was enacted, to be administered by the Department of Labor with the assistance of a Hazardous Chemicals Advisory Council. Public employers and contractors are re- quired to maintain and disseminate inform- ation on hazardous substances to which workers are exposed, and to provide train- lag for employees who handle these mater- ials. Employees may request information about hazardous chemicals and may refuse to work with them until the information is provided. Employees are protected from being discharged or disciplined for filing a complaint or participating in a hearing un- der the act. The Amusement and Carnival Ride Safety Acts were each amended to autho- rize the Commissioner of Labor to order the temporary cessation of operation of an amusement or carnival ride if an in- spection determines it to be hazardous or unsafe. Guam Wage& The minimum wage rate was in- creased from $3.35 per hour to $3.75 effective January 1, 1989. Also, the previ- ous exemption for students employed E-31 during a school summer vacation was re- placed by an exemption for full-time students under age 18. Employers of aliens not admitted for permanent residence must pay all U.S. citi- zens and permanent residents and citizens of the Federated States of Micronesia, the Republic of Belau, the Republic of the Marshall Islands, or the Commonwealth of the Northern Mariana Islands doing the same or substantially similar work wages equal to or greater than those paid to the nonresident aliens. Occupational safety and health. A com- prehensive Occupational Safety and Health Code was enacted, applicable to the Government of Guan and its depart- ments, agencies, authorities, branches or instrumentalities. The law will be admin- istered by a new Division of Occupational Safety and Health administratively at- tached to the Department of Labor. The Division is to review and modify safety standards and rules and recommend their enactment; to monitor and enforce those standards enacted, and to assess employee safety, training, and education progams. Among other items, provision is made for inspections of each agency at least annu- ally, for an annual report to the Gov- ernor, and for an employee hazard report- ing program. Employees may not be compeiled to work in unsafe conditions. Every employee must spend a specified number of hours each year in safety train- ing of his or her agency to be eligible for promotion or cost-of-living adjustments. Hawaii Wages By prior law, the minimum wage rate increased from $3.35 an hour to $3.85, effective January 1, 1988. The wage payment law was amended to require employers to maintain and keep basic employment and earnings records for employees for a period of time and insa manner as prescribed by rule of the Direc- tor of Labor and Industrial Relations. A similar requirement is contained in the minimum wage law. Parental leave The Legislative Reference Bureau was requested by the legislature to study the feasibility of enacting a statute to require employers to grant parental or family leave to employees to care for a newborn child, a child placed with the employee for adoption or foster care, or the employee's seriously iil child or par- ent A report is due to the legislature prior to the 1989 Regular Session. modations nondiscrimination laws will be consolidated in a newly established five- member Civil Rights Commission appoint- ed by the Governor. The Commission is authorized to receive, investigate, and con- ciliate complaints, hold hearings, institute civil action to seek appropriate relief and to adopt rules. The law prohibiting employ- ment discrimination is currently admin- istered by the Department of Labor and Industrial Relations. For administrative purposes only, the new Commission wiil be in the same Department. Private employment agencies. Employ- ment agencies must now include in all con- tracts with job applicants a statement advising of the existing prohibition against charging a fee to an applicant until employ- ment is obtained and the furst pay-check is received. Also required in the contract is a statement advising that a list of the fees charged to applicants by all commercial employment agencies in the State is avail- able for inspection at the Department of Commerce and Consumer Affairs. Occupational safety and health Protections against exposure to secondhand smoke, previously enacted for those working in State and county government offices, will now also apply to employees of private cor- porations, firms, or associations receiving State funding. Protections include a re- quirement that employers attempt to reach a reasonable accommodation between smokers and non-smokers. If an accommo- dation cannot be reached, a vote of the employees in each affected area wiil pre- vail. If the decision is unsatisfactory to nonsmokers, an appeal can be made to the Director of Health. In order to meet the State's responsibil- ities under the Federal Asbestos Hazard Emergency Response Act of 1986, the Department of Health was authorized to adopt rules for the development, review, approval, or disapproval of management plans submitted under the Act and for the accreditation of asbestos inspectors, man- agement planners, and abatement project designers. Employment and training. The voluntary 2-year nurses' job-sharing pilot project established in the Department of Health in 1986, in an effort to increase available employment options, was extended for another 2 years. Under the project, up to 100 full-time permanent nursing positions may be shared between two employees, with the majority of these positions allo- cated to neighbor island hospitals. Equal employment opportunity. Beginning July 1, 1989 enforcement of the State's em- Other laws The Legislative Reference Bu- ployment, housing, and public accom- reau was requested by the legislature to study the effects of employers offering their employees child care as an optional prepaid benefit, prepaid child care, or long-term care benefit options where the employee agrees to a corresponding de- crease in other benefits. A report is due to the legislature prior to the 1989 regular session. The Employee Stock Ownership Pro- grams law, enacted in 1986 to promote expanded opportunities for employee ownership and participation in State busi- nesses, was extended from June 30, 1988, to June 30, 1993, and was renamed the Employee Ownership and Participation Programs law. Idaho Equal employment opportunity. The prohi- bition against age discrimination, including the ban on mandatory retirement, in the Human Rights Act was extended to in- dude all persons over age 40, rather than only those between 40 and 70 years. The Act was also expanded to prohibit discrim- ination on the basis of physical or mental handicap and to require employers to make a reasonable accommodation to a worker's disability. Other laws The provision permitting the State Transportation Board to use convict labor on State highway projects was re- pealed. inois Wages. The State Supreme Court re- versed appellate and circuit court de- cisions by holding that it is outside the grant of home-rule power for home-rule jurisdictions to exclude themselves from coverage of the State prevailing wage law. The decision states that, "compliance with the prevailing wage act is a matter pertaining to Statewide, and decidedly not local, government or affairs." Labor relations Among amendments to the Public Labor Relations Act and the Educational Labor Relations Act, in late 1987, it was made an unfair labor practice to use public funds to hire any outside individual, firm, or organization in an at- tempt to influence the outcome of a representational election. Revisions were also made in mediation and arbitration procedures, and it was specified that if either party to a dispute requests the use of mediation services from the Federal Mediation and Conciliation Service the other party must either join in the request or bear the additional cost of mediation services from another source. The Illinois Public Labor Relations Act, which grants collective bargaining rights to most public employees in the State other E-32 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 than teachers, was amended to exclude em- ployees of the legislative branch of the State government from coverage. Teachers have collective bargaining rights guaran- teed under a separate law. Private employment agencies. A Job Refer- ral and Job Listing Services Consumer Protection Act was approved which is ap- plicable to services providing jobseekers with lists of employers, job referrals or openings, or preparing resumes or lists of jobseekers for distribution to potential em- ployers. These services must maintain and make available to the Attorney General or States Attorney certain job and listing authorization records, must furnish job- seekers with specified fee and other infor- mation, and are prohibited from engaging in specifically enumerated practices. Crite- ria for refund of fees to jobseekers were also established if the service fails to furnish at least three suitable employment opportuni- ties within 10 days. Occupational safety and health The Illinois Chemical Safety Act was amended to in- corporate provisions required by the Fed- eral Emergency Planning and Community Right-to-Know Act of 1986. Both the State Environmental Protection Agency and the Emergency Services Disaster Agency are responsible for carrying out the State's re- sponsibilities. The Environmental Protection Agency was designated the State agency for coor- dinating implementation of the program requiring disclosure of routine releases of toxic chemicals into the environment as required by the Federal Emergency Plan- ning and Community Right-to-Know Act of 1986. The agency will maintain an in- ventory on toxic chemical releases and publish an annual report. Employment and training. The Depart- ment of Public Aid, in cooperation with various State and local agencies, was au- thorized to establish experimental, com- munity-based programs to increase future employability and career development among "high risk" youth. "High risk" youth includes those between 16 and 21 years and having at least one of the follow- ing characteristics: low income, minority, illiterate, school drop out, homeless, dis- abled, a parent, or is a ward of the State. The programs may provide teaching basic literacy and remedial reading and writing, vocational training, and support services. Whistleblower. Licensed child care facili- ties are prohibited from retaliating a- gainst employees who file complaints against the employer's violation of licens- ing or other laws, institute action for such violations, testify in a proceeding, or re- fuse to perform work in violation of a licensing or other law or regulation after notifying the employer of the violation. Complaints of employer's violations of this prohibition are to be investigated by the Department of Labor. Remedial ac- tion may include court ordered relief, including rehiring and reinstatement with backpay and other benefits. Other laws. Employers who provide em- ployees with group health insurance coverage or other health care plans or ar- rangements may not discharge an em- ployee because he or she files a legitimate claim or uses the medical or health care services. Indiana Wages Salaried employees who are eligi- ble for overtime pay under the Federal Fair Labor Standards Act are now ex- empt from the semimonthly or biweekly pay and payment on separation require- ments of the wage payment law. Occupational safety and health The Air Pollution Control Board is to adopt rules requiring the Commissioner of the De- partment of Environmental Management to establish a program for the accredita- tion of persons engaged in the inspection, management, or abatement of asbestos- containing material at elementary and secondary schools. A person will not be allowed to engage in such activities at these schools without accreditation, must have training and an examination as a precondition to accreditation, and have periodic retraining and reexamination to maintain accreditation. All private and public employers must provide training on universal precautions and other infection control measures to each employee whose duties require di- rect contact with blood or body fluids, and such employers must adopt a written personnel policy requiring the use of the universal precautions. Employers are pro- hibited from retaliating against an em- ployee who files a complaint of a violation of these requirements with the State Board of Health. Iowa Employee testing. It was made an unfair employment practice under the civil rights law to solicit or require an AIDS test as a condition of employment of an em- ployee or prospective employee or to take adverse action against an employee who obtains such a test. In addition, the defini- tion of disability, for purposes of civil rights protection, was expanded to in- clude conditions related to AIDS. A separate law was enacted relating to AIDS testing and confidentiality. It pro- hibits the disclosure of information to an employer, among others, unless the test was authorized to be required under any other provision of law. Worker privacy. The law prohibiting em- ployers from requiring job applicants or employees to take a polygraph examina- tion was amended to also prohibit em- ployers from requesting that such an examination be taken, threatening or at- tempting to administer one, or requesting or requiring an employee or applicant to give a waiver of a practice prohibited by law. Employers were also prohibited from retaliating against an employee for filing a complaint or testifying in any proceeding or action involving violations of the poly- graph prohibitions. Occupational safety and health An em- ployee may not be discharged or other- wise discriminated against for refusal to work in unsafe conditions, provided that he or she, if possible, has first unsuccess- fully sought a correction of the dangerous condition. The labor commissioner was autho- rized to seek an injunction to restrain the use of any defective amusement device, ride, concession booth or related electri- cal equipment if the owner or operator continues to operate it without repair af- ter receiving a notice of defect. The Hazardous Chemicals Risks Right- to-Know Act was amended to extend coverage to previously exempt agricultural activities, transportation of hazardous chemicals regulated by Federal law, and educational research laboratories. Other laws Under a new construction con- tractor registration law, most contractors must register with the labor commissioner and be issued a public registration number. Only registered contractors will be eligible to be awarded contracts to perform work for the State or agencies of the State. Among conditions for registration, an ap- plicant must provide evidence of comp- liance with State workers' compensation insurance coverage requirements, and fur- nish specified information about the bus- iriess. The labor commissioner was given authority to adopt rules necessary for ad- ministration and enforcement, and to im- pose administrative penalties on violators. Kansas Wages. The minimum wage was increased from $1.60 to $2.65 per hour, effective July 1, 1988, and the exemption from the law for persons age 60 and older who E-33 work on an occasional or part-time basis programs consistent with the plan, and Louisiana was repealed. provides for an annual review, validation of examination procedures, monitoring ap- Wages The State prevailing wage law was Agriculture. The Agricultural Labor Re- pointments and salary adjustments, and repealed. lations Board is scheduled for termination semiannual reports to the Governor. In ad- By amendment to s wage payment provi- on July 1, 1989, under sunset legislation. dition, the Commissioner of Personnel was sion, which requires the employer, in cases authorized to implement progams to en- of dispute over the amount due so a termi- Equal employment opportunity. The Age sure that reasonable accommodations exist sated employee, to pay the undisputed Discrimination in Employment Act was for handicapped persons to allow them bet- portion of wages due wtthn 3 days, the em- amended to extend coverage to all per- ter access to State government employment. ployee now has a right to file an action to sons over the age of 18 instead of only enforce such a wage claim and to proceed those between ages 40 and 70. Mandatory Background clearance. Child care centers under the Code of Civil Procedure. retirementbecauseofageis no longerper- and State and local boards of education mitted except for certain executive and must now request all conviction informa- Equal employment opportunity. A coin- high polcYmaking employees and, until tion, rather than only the criminal record prehenaisve human rights law was enacted January 1, 1994, for tenured employees at of prior sex crime convictions, for all ap- with administration vested ina newly cre- institutions of higher education. It was plicants for initial employment in positions ated Commission on Human Rights in also made unlawful to establish or main- involving supervisory or disciplinary power tihe office of the Governor. Diacrimina- tain an employee pension benefit plan over minors. Persons who are violent of- tion by psevateemployers of eight or more which requires or permits the cessation or fenders or who have been convicted of or publie sctor employem unions, em- reduction of benefit acemal or account felony sex crimes may not be employed in ploy.mentagenes,o pp a contributions because of age. With re- such positions. training programs on the basis of race, spect to public sector employers, the creed, color, religion, sex, age for those 40 faure to hire or the discharge because of Ocupational safety and health In order to hibi tY The Commission is autgized to ageoffirefightersoriawenforcementoffi- implement the Federal Asbestos Hazard receive, investigate, and conciliate coi- ces, or pursuant to a bona fide hiring or Emergecy Response Act of 1986, the De- plaints, hold hearings, issue ceaae and retirement plan will not be prohibited un- partment of Environmental Protection i desist orders, and to requirecorrectiveac- ti January 1, 194 to develop, adopt, and maintan a compre- tion including hiring reinstatement, and Emplyeet sting Establisment of a drug hensive asbestos contractoh r accreditation upgrding of employees with or without screening program wan authorized for program which replicates the Fedend En- beck pay. vironmental Protection Agency model perSOis talking office as governor, lieuten- issued in 1987. The program is to include a ant governor or attorney general and for p Employee testing. The law prohibiting em- provision for traning and accreditation o those applying for safety sensitive posi- asbestos inspectors, contractors, supervi- ploy from requing employees or job tions in State government. The Direc or a t n ers applcants to pay for the cost of medical of the Division of Personnel Savices of sors, abatement workers and othe. examinaons was amended to also include the Deartment of Administrton is to Employees m surface coal mme opera- the cost of a drug test required by the em- establish and implement the program, tions may not work alone in any haz- ployer. The Secrty of Labor was auth- which may include screening current oc- ardoulareawhch endangersthe worker's orized to unpose civil monetary penalties cupants of these positions if there is a safety unless the worker can communi- and to institute civil court action to obtain reasonable suspicion of ilegal drug use. A cate with others, can be heard or can be injunctive relief to prevent violations of the person is not to be discharged for a first seen' law or regulations. Civil penalties will be in time positive test if he or she undergoes a A resolution was adopted requesting addition to previously provided criminal drug evaluation and successfully com- the Interim Joint Committee on Labor penalties. pletes any recommended education or and Industry to consider the need for treatment program. community right-to-know ordinances, Occupational safety and healtk The law re- statutes, or regulations. quiring the licensing of contractors was Employment and training Kansas Indus- amended to create a new classification of trial Training and Retraining Programs EmPloyment and training. The legisla- licensee, that of hazardous materials con- were established under the Secretary of ture, by resolution, encouragedemployers tractor, which includes asbestos removal Commerce. The programs are to provide to hire employees who have or are work- and abatement and hazardous waste treat- training to meet the needs of new or ex- ing towards a high school diploma or ment and removal. Asbestos removal and panding industry and its new or prospec- equivalency certificate, and to develop abatement contractors may not be licensed tive employees, and to provide retraining to incentives and programs to encourage until certified by the Department of Envi- meet the needs of a restructuring industry and enable employees to complete high ronmental Quality, and any contract deal- and its employees. school or equivalency programs. ing primarily with hazardous materials may Ketuclcy be awarded only to a licensed contractor. Kentucky Other laws. The legislature, by resolution, Equal employment opportunity. Theaffirm- called for the creation of a Commission Employment and training. The Assistant ative action plan for State employment, on Kentucky's Government to study each Secretary of the Office of Labor was autho- promulgated in 1984 and confirmed by ex- executive agency, including the Labor rized to impose a civil penalty of up to $500 ecutive order, was desigpated by the leg- Cabinet and its sub-units, and its pro- against program sponsors and employers islature as the official affirmative action grams, functions and mission to deter- who violate the apprenticeship law, rules plan for State government. The plan, mine that it is serving a legitimate public and regulations, approved program stan- administered by the Commissioner of Per- end and is functioning in the most effi- dards, or the provisions of an approved sonnel, requires all agencies to develop cient manner. apprenticeship program. The Assistant Sec- E-34 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 retary was also authorized to institute civil court proceedings to enforce administrative rulings or to seek injunctive relief to re- strain and prevent violations of the law or rules and regulations. Other laws. The law providing for crimi- nal penalties against employers who dis- charge or otherwise discriminate against employees who testify or furnish informa- tion relative to enforcement of State labor laws was amended to now also authorize administrative and civil action. The As- sistant Secretary of the Office of Labor is authorized to promulgate rules and regu- lations, conduct investigations, impose civil penalties of up to $500, and to insti- tute court proceedings to enforce rulings or to seek injunctive relief to restrain and prevent violations of the act or rules and regulations. A resolution was adopted requesting that employers not withhold any portion of an employee's pay and benefits for those days on which he or she serves as a juror. Maine Wages. The minimum wage was increased from $3.65 to $3.75 per hour starting Jan- uary 1, 1989, with a further increase to $3.85 scheduled for January 1, 1990, pro- vided that the rate does not exceed the average minimum wage of the other five New England Staten. In addition, the State minimum wage will automatically increase to match increases in the Federal minimum up to $5 per hour instead of $4 per hour as previously provided. The min- imum cash wage for employees who receive tips will remain at $2.01 per hour irrespective of increases in the base mini- mum wage. The Director of the Bureau of Labor Standards was authorized to form an in- formal, ad hoc advisory board to provide advice with respect to issues relating to wage rates on construction projects. The board is to include labor and contractor representatives from both the highway and the heavy building construction seg- ments of the industry. Parental leave. Private sector and local government employers of 25 employees, or more and the State must grant up to 8 weeks of unpaid family medical leave in any 2 years to any employee who has been employed by the same employer for 12 consecutive months. Employees are enti- tled to such leave for the birth or adoption of a child, or for a serious illness of the employee, child, parent, or spouse. Em- ployees taking such leave are entitled to reinstatement in the same or equivalent position without loss of benefits, senior- ity, or pay. The law is scheduled for re- peal on July 1, 1990. Child labor. The section of the child labor law prohibiting the employment of mi- nors under age 16 in manufacturing or mechanical establishments, laundries, dry cleaning establishments, and bakeries was amended to permit employment of these children in retail sales, customer service operations, or office work for these estab- lishments, provided that such work is in a separate room. Worker privacy. The Director of Human Resources was authorized to reease to the Director of Employee Relations, upon request, specific confidential information concerning State employees to be used in negotiations, impasse procedures, griev- ance proceedings, and certain other proceedings in which the Director of Em- ployee Relations represents the State. Safeguards were enacted governing and limiting the release of the information. Occupational safety and healtk Annual refresher training of employees who are exposed to hazardous chemicals in their work areas is now required under the Chemical Substance Identification Law. The Director of the Bureau of Labor Standards, in consultadon with the Board of Pesticides Control, is to provide assis- tance to agricultural employers in the development and conduct of training pro- grams for employees with respect to hazardous pesticide chemicals and in sat- isfying the information requirements of the Federal Hazard Communication Standard. Employment and training. A Strategic Training for Accelerated Reemployment Program was created to establish an em- ployment training program to provide unemployed or displaced workers receiv- ing unemploymant compensation with skills training and support leading to jobs in stable and expanding industries, and to provide employers with workers whose training is consistent with their needs. The program is to be administered by the Department of Labor. Whistleblower. Employers may not retali- ate against an employee who, in good faith, reports a condition or practice that is a health or safety risk, or refuses to carry out a directive that would involve exposure to dangerous conditions. Com- plints of violations of employee rights under the "whistleblower" statute may now be made to the Human Rights Com- mission for action. Under the Human Rights Act, it is now unlawful for an em- ployer, employment agency, or labor organization to discriminate against an employee or job applicant because of pre- vious actions taken which are protected by the "whistleblower" statute. Other laws. The Office of Child Care Coor- dination is to submit to the legislature an annual evaluation of the status of State fi- nanced or operated child care facilities and programs operated primarily as a service for children of State employees, along with plans for additional facilities. That office is to conduct a feasibility study prior to the creation of new or additional facilities. Maryland Parental leave. State employees in the Ex- ecutive Branch who have completed their probationary periods could previously be granted unpaid seasonal leave, during pe- riods of low demand for their services, of up to 12 weeks within a 12-month period. The law was amended to now permit a total combined period of 12 weeks unpaid leave in a 12-month period for seasonal leave or to care for a newly born or adopted child, a foster child, a seriously ill child, spouse, parent, or legal dependent, or school-age children under the age of 14 during periods of school vacation. Em- ployers must assure that the employee's position is available after use of any ap- proved family or seasonal leave. Equal employment opportunity. Mandatory retirement at the age of 70 is no longer required under the State employees and teachem retirement systems. Previously, employment past age 70 was permitted only upon approval of individual annual requests. A prohibition against employment dis- crimination based on age must now be con- tained in the required nondiscrimination clause in all State procurement contracts. Employee testing Employers who require employees to be tested for job-related rea- sons for the use or abuse of any controlled dangerous substance or alcohol must have the specimens tested by licensed, certified or accredited laboratories, and must iden- tify the laboratory to the employee being tested. Employees may request indepen- dent testing of the same sample for veri- fication at their own expense. Employment and training. A Rehabilita- tion and Employment Advisory Commission was established within the Department of Education's Division of Vocational Rehabilitation and was di- rected to develop a plan, by July 1, 1989, to (among other things) facilitate the placement of disabled individuals into re- E-35 habilitation and employment settings and to facilitate the establishment of providers of services for the disabled. Massachusetts Wages By prior legislation, the minimum wage rate was increased from $3.65 an hour to $3.75, effective July 1, 1988. Under the wage payment law, employ- ers making deductions from wages for Social Security, unemployment compensa- tion benefits, pension, vacation or health and welfare funds must now notify new employees, in writing, about the nature of such deductions and contributions, and notify all employees in writing at the initial time of any new deduction or contribution from wages. These notification require- ments will also apply to building, highway, and public works contractors who are parties to agreements to make contribu- tions to funds for these purposes as well as to apprentice training program funds for the benefit of employees. An employer who makes a deduction from an employee's wages for the pur- chase of or contribution toward the purchase of an accident and health insur- ance policy and fails to purchase such coverage, is now subject to imprisonment, fine, being required to reimburse the employee for the deduction, or being re- quired to pay for all costs incurred by the employee that otherwise would have been covered by such insurance (or a combina- tion of these). Voters in November defeated a ballot initiative, Question 2, which sought re- peal of the Commonwealth's prevailing wage law. Parental leave. Health and insurance ben- efits of State employees who are granted parental leave to care for a child under 3 years of age, must be continued for the period of leave, with the employee paying that portion of the premium normally de- ducted from the employee's salary. Child labor. The child labor law was amended to permit minors under age 16 to work until 7 p.m., except that from July first through Labor Day they may work until 9 p.m. Previously, these minors were prohibited from working past 6 p.m. Equal employment opportunity. Certain groups of State and municipal public safety employees may now work beyond age 65 with annual certification of their capability to continue their duties. Uni- formed fire department and police personnel and specified others must retire at age 65 unless the Personnel Adminis- trator determines that age is not a bona fide occupational qualification. Labor relations The public employees la- bor relations act was amended to specify that where binding arbitration is provided for grievance resolution under the terms of a collective bargaining agreement, and is selected by an employee, it will be the exclusive procedure for resolving any such grievance irrespective of any con- trary provisions of the Public School Code. Occupational safety and health. Beginning January 1, 1988, persons who smoke any tobacco products become ineligible for appointment as a uniformed member of the State Police, or to a position involving the care, supervision, or custody of pris- oners, criminally insane persons, or defective delinquents. Appointees to such positions after January 1, 1988, may not continue in their jobs if they subsequently smoke tobacco. A Federal District Court judge declared unconstitutional, as an unwarranted re- striction on freedom of speech, a provision of the Commonwealth's right-to-know law limiting the disclosure of information about the presence of hazardous substanom in the workplace to those authorized to re- ceive it, and making it a criminal offense to convey that data to others. Other laws A universal health-care law was enacted designed to provide basic health insurance for every resident of the Commonwealth by 1992 including the em- ployed, those receiving unemployment benefits, and all others not enrolled in health insurance plans. Under the law, em- ployers of six employees or more must offer imsurance to workers or pay a sur- charge on unemployment insurance. Money from the surcharge and other funds will be used by the Commonwealth to guarantee health insurance for those with- out coverage. The Department of Medical Security will administer the program. A late 1987 enactment increased the dollar amount of penalties for violation of several labor standards provisions includ- ing various provisions related to strike- breakers, wage payments on public works Sunday and holiday work, meal periods, health and safety, industrial home work, and the weekly payment of wages. Mlchigan Child labor. The Department of Labor adopted new youth employment rules ef- fective July 15, 1988. These deal with supervision of minors, restrictions on haz- ardous occupations in nonagricultural employment, and deviations from estab- lished hours of employment and hazardous occupation standards for 16- and 17-year- olds. In addition to the previous require- ment that an adult employee be present when cash transactions are performed after sunset or 8 p.m., employers must now pro- vide adult supervision intermittently throughout the work day of all minors. Hazardous occupations provisions were re- vised with several being made more con- sistent with Federal standards. Minnesota Wages. By prior law, the minimum hourly wage rate was increased for em- ployers covered by the Federal Fair Labor Standards Act from $3.35 to $3.55 on January 1, 1988, and $3.85 on January 1, 1989. A further increase to $3.95 is scheduled for January 1, 1990. The rate for those employers not covered by the act increased to $3.50 on January 1, 1988, and to $3.65 on January 1, 1989, with a further increase to $3.80 scheduled for January 1, 1990. As of January 1, 1989, the phased elimination of the tip credit allowance against the minimum wage, be- gun in 1985, was completed. Hours. Employers must now allow em- ployees adequate time away from work during each 4 consecutive work hours to use the nearest convenient restroom. Dif- ferent rest breaks may be established in a collective bargaining agreement. The Commissioner of Employee Rela- tions is to conduct a study of the use of part-time employees in the executive branch of State government with a report of the results of the study to be made to the legislature by January 15, 1989. The report is to include a statistical analysis of the ex- ecutive branch work force as to full- or part-time status identifying job classifica- tions that are male-dominated, female- dominated, and balanced; a summary of overall trends in the use of part-time work- ers; and the costs of providing insurance benefits to these workers. Equal employment opportunity. The Hu- man Rights Act was amended to provide that the prohibition against employment discrimination on the basis of marital sta- tus includes protection against discrim- ination because of the identity, situation, action, or beliefs of a spouse or former spouse. Metropolitan government agencies and the metropolitan council must develop af- firmative action plans, which among other requirements identify protected groups that are underrepresented in their work forces, describe methods for recruit- ing members of such groups, set goals and timetables for eliminating underrepresen- tation, provide a plan for retaining and promoting protected group members, and contain methods of auditing, evaluating, E-36 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 and reporting program success. Such agencies must also adopt written policies prohibiting harassment based on sex, dis- ability, or race. The agencies and council may not ac- cept any bid or proposal or execute a contract for goods or services in excess of $50,000 with any employer of 20 or more unless the employer has an affirmative ac- tion plan, approved by the Commissioner of Human Rights, for employment of mi- norities, women, and the disabled. Employee testing. The law regulating drug and alcohol testing of employees was amended to permit testing for alcohol by breath test as an initial screening provided that the results are confirmed by blood analysis. Labor relations Binding interest arbitra- tion is required if requested by either a school board or the exclusive representa- tive of its teachers after 5 years or more have elapsed since the expiration of the last collective bargaining agreement with- out a successor contract being ratified by both parties The city of Minneapolis was authorized, but not required, to negotiate agreements concerning the hiring and terms and condi- tions of employment for skilled trade and craft workers and apprendces with local labor organizations representing skilled building and construction trades and elec- trical workers and apprentices. Private employment agencies. Employ- ment agencies may not accept a placement fee prior to the applicant's actual starting date, instead of at the time of the accep- tance of a job as before. Coverage of the licensing law was extended to job listing services, while specific exemptions were added for resume services, and for various publications of general circulation. Occupational safety and health The Occu- pational Safety and Health Act was amended to increase fines for penalties and to include a new provision for a fine of up to $10,000 for any violation that causes or contributes to the cause of the death of an employee. Economic development. Various economic development programs, including the cus- tomized training program, were specifical- ly required to serve nonprofit organizations, including community groups and labor or- ganizations, that have a viable proposal in the same manner as businesses applying for assistance. Employment and training. The youth em- ployment opportunities program for individuals between 14 and 22 years of age was extended from a summer to a full year program. Employers are specifically prohibited from discharging workers or reducing their hours in order to hire a person with funds available under the program and also may not hire such an individual if other workers are on layoff from the same or similar job. Persons hired under this program must now be paid the higher of the State or Federal minimum wage rather than at the Federal rate as before. Other laws. Each State agency is required to adopt a smoking policy for the space it occupies, and such policy must either pro- hibit smoking entirely or permit it only in designated areas. Disciplinary action against any employee complaining of a smoke induced discomfort is prohibited. The Commissioner of Administration is to consider including space usable for child care services in any State office space leased, purchased, or substantially remodeled after August 1, 1988. Such space must be included if the Commis- sioner determines that it is needed and can be provided at reasonable cost. Public and private sector employers may not engage in any reprisal against an employee for declining to participate in contributions or donations to charities or community organizations, including con- tributions to the employer itself. Misisippi Other laws The Govemor was directed to appoint an Executive Branch Reorganiza- tion Study Commission, aided by advisory committees as necessary, to conduct a comprehensive study of the executive branch of State government and issue a report making specific reorganization rec- ommendations to the legislature by Oct- ober li 1988. Missouri Wages The Department of Higher Edu- cation may issue an order directing any employer to withhold defaulted student loan payments from an employee's wages. An employer may not discharge, refuse to hire, or otherwise discipline an employee as a result of the order to withhold wages. Background clearance. Upon written re- quest from a youth services agency, the highway patrol will conduct a criminal record review of applicants for paid or voluntary positions with the agency which involve direct contact with minors. Occupational safety and health. Among changes to the law requiring employers to provide information on hazardous sub- stances in the workplace to local fire protection services and others, administra- tion of the law was transferred from the Department of Health to the Department of Natural Resources. Various require- ments relating to reporting and onsite inspections were conformed to Federal Emergency Planning and Community Right-to-Know requirements, and the ex- emptions for employers of fewer than 10 agricultural workers and retailers of con- sumer goods were removed. Employment and training. Junior college districts, with the approval of the Depart- ment of Economic Development, were authorized to enter into cooperative agree- ments with employers for establishing new job training projects. Training of potential employees may not be for the purpose of replacing or supplanting workers engaged in an authorized work stoppage. Nebraska Wages The wage payment and collection law was extended to include political sub- divisions. Employees of such subdivisions who are separated from the payroll must be paid within 2 weeks of the next regu- larly scheduled meeting of the sub- division's governing body. Employee testing. Public and private em- ployers of six or more are now authorized to require emnployees to submit to drug or alcohol testing under penalty of dismissal or other disciplinary or administrative ac- tion for refusal to be tested. Confirmation of a positive test may also subject an em- ployee to termination or other adverse actions. Penalties were established for providing, acquiring, or using body fluids to alter test results or for tampering with samples. Testing and retesting procedures approved by the Department of Health are specified. Labor relations For purposes of the In- dustrial Relations Act, administrators employed by Class V school districts, ex- cept for those in the office of the super- intendent and those holding certain other specified high level positions, may now join a single bargaining unit with teachers and other certificated employees. State Patrol sergeants are to be in- cluded in the law enforcement bargaining unit with investigators and patrol officers for State employee collective bargaining purposes. Occupational safety and health The Asbes- tos Control Act was amended to establish specific training course requirements for the certification of workers, supervisors, inspectors, management planners, and E-37 project designers engaged in asbestos en- Child labor. The child labor law was applicant-paid fees for commercial, cleri- capsulation, removal, demolition, or dis- amended to allow minors under 16 years cal, executive, administrative, and pro- mantling. Annual review courses are now to work until 7 p.m. rather than 6 p.m. as fessional placements will be reduced for also required for recertification. before, and to permit 14- and 15-year-olds all jobs paying less than $1,650 per A Boiler Safety Advisory Board was who are employed in supermarkets or month. For example, the maximum fee created with the responsibility to hold other retail establishments to work until 9 for positions paying less than $750 per hearings and advise the Commissioner of p.m., with written parental permission, month will be reduced from 60 percent to Labor on rules and regulations for meth- during the period beginning the last day 25 percent of the first month's salary, and ods oftestingequipmentandconstruction of school through Labor Day. The maxi- for those earning between $1,350 and and installation of new equipment cov- mum hours a minor under 16 may be $1,500 per month it will be lowered from ered by the Boiler Inspection Act. employed outside school time were 60 to 50 percent. The time period over New Hampshire changed to 3 hours a day (instead of 8 which an applicant may pay placement New Hmniapsisire hours a day combined hours of school and fees will be extended, and employee reim- Wages. By prior law, the minimum work). Notwithstanding any prohibited bursement of an employer-paid placement hourly wage rate was increased from occupation provision, minors 15 years of fee will be prohibited. Employer fee-paid S3.55 to $3.65, effective January 1, 1989. age or older may be employed as cashiers agencies will no longer be required to reg- or baggers near supermarket or retail es- ister with the administrator, but will be Child labor. As part of an act establishing tablishment cash register conveyor belts. subject to specified prohibited activities. a comprehensive literacy and school dropout prevention program, the Youth Apparel registration. Apparel industry Occupational safety and health. A new Employment Law was amended to pro- manufacturers and contractors must now Safety in Skiing law was adopted designed vide that 16- or 17-year-olds who are en- register annually with the Department of to, among other things, promote safety in rolled in school will not be permitted to Labor as a condition of doing business in the downhill ski industry. Under the law, work more than 36 hours during a school the State. The labor commissioner was di- the Commissioner of Labor is to specify week. Also, a legislative study committee rected to establish a Special Task Force to the required waruing implements or de- was created to examine the problems of make inspections for compliance with the vices on trail maintenance vehicles and illiteracy and dropout prevention, includ- registration requirement as well as with the contents of required training of ski ing the relationship between the number State laws relating to wage and hour, in- area employees, and to receive and inves- of hours per week that a student works or dustrial homework, unemployment comp- tigate reports of fatalities at ski areas. participates in sportsand thestudent's ac- ensation, temporary disability insurance, Suffolk County adopted a local law ademic achievement. and workers' compensation. Among possi- providing employee protection against ble penalties, registration may be revoked if possible dangers of video display terminal Occupational safety and health The law sufficient violations are found. use. The law requires employers who have setting standards for asbestos abatement 20 or more video display terminals within management was amended to provide Employment and Training. An Occupa- the County to make available, and pay 80 that the necessary training, licensing, and tional Information Coordinating Com- percent of the cost of, periodic vision ex- certification requirements for projects, mittee was established in the Department aminations of operators; to adopt work- owners, managers, contractors, and em- of Labor with responsibility fordeveloping, station standards covering items includ- ployees, as established by the Director of managing, and overseeing a Statewide ing chairs, backrests, terminal table Public Health Services, must be at least as comprehensive occupational labor market height and angle, keyboards, and lighting; stringent as those under the Federal Envi- supply and demand information system and to provide flexible work breaks. Op- ronmental Protection Agency's model that will serve as a guide for the State's job erators are to be given education and plan. In addition, provision was made for training and education programs and other training on the nature of potential health granting licenses to persons licensed by programs. hazards to which they may be exposed, other States whose standards for licensure The Division on Women in the Depart- protective measures, and the require- are substantially equivalent to those of ment of Community Affairs was directed ments of this law. Employees may not be New Hampshire. to establish from two to four Hispanic discharged or otherwise discriminated The position of chief boiler inspector was Women's Demonstration Resource Cen- against for filing a complaint, instituting established in the Department of Labor. ters to enhance the employability of any proceeding under the law or for testi- New Jersey Hispanic women. The centers are to pro- fying in any such proceeding. vide, among other services, job counsel- Wages. Under the State prevailing wage ing, career information, job training, and Plant closings. The temporary program to law the labor commissioner may now re- job placement. assist dislocated workers with the pay- quire employers to file payroll, hours, and . ment of health insurance premiums, other employment records within 10 days New Mexico established in the State Insurance Fund in of a request. Failure to comply may result Other laws. Among provisions of a new 1987 for workers terminated from em- in withholding of payments due the em- Subcontractors Fair Practices Act, passed ployment because of a layoff involving 50 ployer on the public work of up to 25 to regulate contractor's use of subcontrac- workers or more, was continued until percent. not to exceed $100,000, until the tors on public works projects, a provision March 31, 1989. request for records has been satisfied. was made for subcontractor submission of Ohio Local boards of education, county or performance and payment bonds if re- municipal boards of health, or autono- quested by the contractor. Whistleblower. Public or private employers mous authorities created by a county or New York are prohibited from disciplining or retali- municipality are to deduct overdue stu- ating against an employee who, after first dent loan payments from the wages of Private employment agencies. Beginning notifying his or her employer, in good faith their employees. September 1, 1989, permissible ceilings on reports a violation of any State or Federal E-38 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 statute or regulation that the employee reasonably believes is a criminal offense likely to cause imminent risk of physical harm to persons, or a hazard to public health, or is a felony. Enforcement is through civil action instituted by the em- ployee, and the court may order reinstate- ment to the same or comparable position, payment of back wages, and full reinstate- ment of fringe benefits and seniority. Oklahoma Wages. Civil court actions by employees or their representatives to recover unpaid wages and liquidated damages are no longer limited to $1,000 per claim. Equal employment opportunity. Under a new Fair Employment Practices Act, added to the Oklahoma Personnel Act, applicable to employees of the State, State agencies may use optional hiring proce- dures to hire qualified women and mi- norities who are State residents. These procedures may be used only for employ- ment in a job class, group, or category which has been identified as underutilized and in which a hiring goal has been set in the agency's approved affirmative action plan, and a determination has been made that an imbalance exists justifying reme- dial action to reach the affirmative action goal. Each agency's appointing authority is responsible for affirmative action ef- forts, and agencies with 200 employees or more must designate an affirmative action officer. Private employment agencies. Among changes to the private employment agency licensing and regulatory law, coverage is now limited to agencies charging a fee to job applicants instead of those charging fees to either applicants or employers. A list of organizations and services not con- sidered to be private employment agencies was added. Employment and training. A Jobs Recov- ery Program was enacted, designed to provide public works jobs and training for persons who have exhausted State and Federal unemployment benefits or those who are economically disadvantaged, or both. Other laws. A joint resolution was adopted directing that a proposed consti- tutional amendment be placed on the November general election ballot that, if approved, would make the office of the Commissioner of Labor an elected posi- tion with a term of 4 years. At present the Commissioner of Labor is appointed by the Governor. The measure, State Ques- tion number 613, was approved by the voters. Oregon Occupational safety and health. Voters in November defeated a ballot initiative, Measure 6, that would have prohibited nearly all smoking in enclosed public places, including the workplace. Pennsylvania Wages. The State minimum wage rate will increase from $3.35 per hour to $3.70 ef- fective February 1, 1989. Labor relations. Employee organizations recognized as exclusive representatives un- der the Public Employee Relations Act may now negotiate fair share fee agree- ments and collect these fees from non- members whom they represent. The fair share fee will be the regular membership dues less the cost of nonrepresentational activities. Employees who object to making payments on bona fide religious grounds may pay an equivalent amount to a nonreli- gious charity agreed to by the nonmember and the exclusive representative. Coverage of the provision was specifically defined to include public school employees, aside from other public employees. Other laws. A Policy, Planning and Evalua- tion Advisory Committee was created within the Department of Labor and In- dustry and was assigned many of the functions formerly the responsibility of the Industrial Board. The committee's respon- sibilities include advising the department on all issues and regulations within the de- partment's jurisdiction including specif- ically farm labor, child labor, industrial homework, women in the work force, and plans to regularize or improve employment opportunities. The Industrial Board's juris- diction now includes various safety laws and the employment agency law. The board is authorized to grant variances and hear appeals arising out of enforcement actions of the department, to make sugges- tions to the department on rules and regulations, and to perform other related functions. Puerto Rico Wages. A mandatory decree revision, is- sued by the Commonwealth Minimum Wage Board, effective March 6, 1988, in- creased minimum rates in the hotel in- dustry to $2.50 an hour for waiters and bellboys and to $3.35 for all other em- ployees in enterprises with an annual gross income of $362,500 or more; to $2.25 for waiters and bellboys and to $2.90 for all other workers in enterprises with annual gross income of less than $362,500; and from $2.00 to $2.75 an hour for all employees of guest houses. Previously, the minimums for waiters and bellboys ranged from $1.70 to $2.15 de- pending on the size and type of hotel and whether it had an annual gross income of $250,000 or more. For other employees, the minimum ranged from $2.25 to S2.50 an hour. Separate minimum rates for arts and crafts employees were eliminated. An addition to the decree provides that in the event an employee ceases work, the em- ployer is to pay for any accrued vacation leave. Another mandatory decree revision in- creased minimum rates in the construc- tion industry from $1.60 an hour for all workers to S4.00 an hour for office, super- visory, and skilled workers, and to S3.45 for all other workers. A separate decree as- sures construction workers minimum daily pay equivalent to 4 hours of work when, under specified circumstances, work can- not be performed through no fault of the employee. Equal employment opportunity. Sexual ha- rassment in employment was prohibited. Other laws. Inclusion of any unlimited right-to-fire clause in an employment contract was prohibited. Employees may not enter into any agreement under which they agree to forgo their right to receive guaranteed severance pay or health benefits if dis- charged or laid off. New regulations were adopted setting weight lifting criteria for employees. Rhode Island Wages The State minimum wage rate was increased from $3.65 per hour to S4, ef- fective July 1, 1988. As the result of an addition to the wage payment law, employers must offer to pay a separated employee who has worked for the employer for more than 1 year and who later returns from a layoff to the same or a similar job, the same wages earned at the time of separation. Child labor. Under the child labor law, the Department of Labor rather than the Department of Health will now be em- powered to declare additional places or occupations as hazardous for employ- ment of all minors under 16 years or of a particular minor, aside from the occupa- tions specifically enumerated in the law. Notwithstanding other provisions of the child labor law, local school commit- tees were authorized to establish school supervised and administered work experi- ence and career exploration programs, for students over age 14, as approved by the E-39 Wage-Hour Administrator of the U.S. De- South Carolina crimes, the application is to be denied. partment of Labor. Equal employment opportunity. The Hu- Subsequently hired employees or resi- Equa emloyentoppotunty.TheHu- dents are subject to the ssme record man Affairs Law, applicable to both cheks. discrimination ban in the Fair Employ- public and private nector employment, Background checks of unregistered ment Practices Act now requires employ- wasimende tor reoveraeo the ageo70bupper family day care providers and employees ers to treat women affected by pregnancy, against age discrimination in emp p o y were also authorized, and those convicted childbirth, or related medical conditions ainst Dae dcrimi 3 199n employ- of child abuse or sex offenses are prohib- the tame as other employees (not so al- ment. Unti Deuembohieor 31, 1993, aremly ited from operating child welfare agen- fected but who are similar in their ability erfmyrefugtese tora hienforemayt dficharge- cies, or registered or unregistered family or inability to work) for all employment cause of age pursuant to a bona fide hiring day care homes. purposes, including receipt of fringe bene- or retirement plan that is not a subterfuge Specific criteria were established for fits. Nothing in the Act is to be deemed to to evade the law. The ban on mandatory oe; prefs o Sue,ao re icese repeal provisions of any law relating to retirement will not apply to persons em- '- parental leave. ployed under contracts of unlimited tenure or registration certificate to provide child A State Equal Opportunity Office was at institutions of higher education until provide information on the background established to oversee equal employment December 31, 1993, or to executive or high and incof onne failurorne opportunity in State government. Each policymaking employees at age 65 if they fusal to uubmit loan investigation, failure State agency must prepare an annual affir- are entitled to retirement benefits of at to report suspected child abuse or neglect, mative action plan. The Commission for least S44,000 a year (rather than S27,000 a and failure to exercise reasonable care in Human Rights is authorized to bring year as before). the hiring, training, and superviuion of fa- charges of discrimination against State ty hirin nel agencies and personnel and to order dis- Occupational safety and health Contrac- ciity personnel continuance of discriminatory employment tors, supervisors, workers and othes in- Occupational safety and health. The patterns or practices. State contractors volved in the removal, encapsulation, and Board of Minerals and Environment is to must meet the same equal opportunity re- other activities with respect to friable asbes- establish an asbestos abatement training quirements as established for contractors tos containing materias must now obtain a program to assure the proper and safe under Federal executive ordes, including license from the Department of Health and abatement of asbestos hazards through affirmative action. State licensed organiza- Environmental Control. The Department contractor and worker certification. Cri- tions, and licensed private education was authorized to prescribe standards of teria for asbestos contractor and worker institutions and health care facilities must performance for asbestos removal opera- certification and training wiil be devel- also meet the nondiscrimination and affir tions and licensing criteria. oped by the board, and only certified mative action requirements. South Dakota contractors and workers will be allowed to work on asbestos abatement projects. Employee testing, As part of a new law Wages The State minimum wage rate was regulating the testing for AiDs, employers inreased from 12,.0 per hour 1t S3 Employment and training. The State man- are prohibited from discriminating in em- effective July 1, 1988. power advisory council, administered by ployment on the basis of a positive AIDS Child labor. The law barring persons un- the Department of Labor, was abolished. test result, or from requiring such a test as d abom le alcohons un- a condition of employment except under der age 21 from on-sale alcoholic bev- Teiinesse limited circumstances. erage establishments was amended to per- Parental leave. Because of an Attorney mit persons under age than 21 to sell or General Opinion raising questions of pos- Plant closings The law entitling involun- dispense malt beverages if the sales of sible sex discrimination, the 1987 law such beverages are less than 50 percent of requiring the granting of leave to female tarily laid-off employees or the surviving the establishment's gross business and the employees for the purpose of bonding spouse of a deceased employee to con- licensee or an employee who is at least 21 with a newly born or adopted infant was tinue group hospital, surgical, or medical is on the premises. amended to make the law clearly a mater- insurance coverage, by payment of premi- Notwithstanding Hazardous Material nity leave provision by specifying that the ums at the group rate, was extended to Transportation Safety provisions, which leave is for the purposes of pregnancy, include employees who lose their jobs due require a minimum age of 21 for drivers, childbirth, and nursing, where applicable. to a workplace closing or a permanent persons under age 21 but over 18 may reduction in the size of the work force. In become qualified drivers if certified as pri- Child labor. The section of the Safety and addition, the maximum period of continu- vate applicators under agricultural pesti- Health Code regulating the inspection of ing such insurance was extended from 10 cide application requirements. hotels, food service establishments, and to 18 months. public swimming pools was amended to Background clearance. Prior to issuing a specify that children 16 years of age or Whistleblower. Coverage of the public em- child welfare license for group homes, day younger do not need to acquire a seller's ployee whistleblower protection law was care centers, foster homes, and other fa- license or permit to sell bakery goods, soft expanded to include persons employed by cilities, the Department of Social Services drinks, or other similar food commodities companies or associations which did is to conduct a criminal record check of at public events if the child does not sell more than S200,000 in business with the the applicant, of adults responsible for su- these goods more than three times a year. State or a municipal government in the pervising staff or providing care and preceding year or which received more supervision to children, and adult resi- Equal employment opportunity. The anti- than $200,000 in State or municipal funds dents. If it is found that any of these discrimination law applicable to both for the operation of its programs. persons has been convicted of specific public and private sector employment E-40 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 was amended to protect all employees over age 40, instead of only those employ- ees 40 to 70 years of age, from age discrimination. Employers may refuse to hire or discharge firefighters or law en- forcement officers because of age pur- suant to a bona fide hiring or retirement plan that is not a subterfuge to evade the law. The ban on mandatory retirement will not apply to persons employed under contracts of unlimited tenure at institu- tions of higher education or to executive or high policymaking employees at age 65 if they are entitled to retirement benefits of at least $44,000 a year (rather than $27,000 a year as before). Employee testing. The Commissioner of Correction was authorized to require drug testing of the Department's security personnel upon reasonable suspicion that an employee's faculties are impaired on the job and that a danger exists as a result of the impairment. Confirmation and re- view of all positive tests are required before any disciplinary action may be taken and employees are to be given an opportunity to explain or rebut test re- sults. An employee counseling and rehabilitation program must be provided. Private employment agencies The law providing for the licensing and regulation of personnel recruiting services was amended to prohibit such services from imposing a fee on a job applicant prior to placement in a job. Coverage of the law was extended to job listing firms, and the exemption from the law for the placement of nurses and public school teachers and administrators is now limited to employee trade associations. Occupational safety and health. A Gover- nor-appointed Tennessee Occupational Safety and Health Administration Labor Advisory Council was created within the Department of Labor to advise the de- partment on all matters in the State pertaining to occupational safety and health. Plant closings Under a new law, upon noti- fying affected employees of a major layoff, plant closure, or relocation, as defined, em- ployers of 50 full-time employees or more are then to advise the State government by notifying the Executive Director of the Economic Cabinet Council of the circum- stances of the reduction in operations and the number of employees affected. In turn, the Executive Director is to advise other designated State officials, including the Commissioners of Employment Security and Ed- ucation, among others. Other laws. The law requiring employers to excuse from work and compensate em- ployees summoned for jury duty was amended to limit the excused absence to days on which the employee's responsibil- ity for jury duty exceeds 3 hours. Also, provision was made for excusing employ- ees who are working a night shift or hours immediately preceding normal court hours. Texas Labor relations. The U.S. Court of Ap- peals for the Fifth Circuit, on June 30, 1988, affirmed in large part, a district court ruling that several provisions of the Texas mass picketing law are unconstitu- tional. Provisions that were struck down include those prohibiting more than two pickets at any time within either '0 feet of any entrance to the premises being pick- eted or within 50 feet of any other picket or pickets and banning picketing that is accompanied by any oral or written mis- representations. Uth Wages. Specific provisions prohibiting vio- lation of the minimum wage and maximum hours requirements for women and minors and establishing penalties were repealed, however, the Industrial Commission re- tains the duty to enforce the provisions and has authority to take action as deemed nec- emuary for such purposes. Equal employment opportunity. The pro- hibition on employment of women in mines or smelters if the work was found, by the Industrial Commission, to be detri- mental to their health or safety was removed. Occupational safety and health. Occupational safety and health provisions were amended to specifically exclude from the Industrial Commission's juris- diction authority over mines, including inspection or enforcement of rules and regulations, so long as Federal regulations apply to the State's mines. For any mine subject to Federal law, the sole duty of the Commission is to notify the appropri- ate Federal agency of any complaints received. The Air Conservation Committee was authorized to adopt rules for implementa- tion of the Federal Asbestos Hazard Emergency Response Act of 1986, and to establish certification requirements for persons required under that act to be ac- credited. Other laws. A resolution directed the Leg- islative Management Committee to assign appropriate interim committees to study numerous labor- and nonlabor-related subjects, including a preference for in- State bidders, workers and materials on State contracts; laws relating to harass- ment and discrimination including AIDS discrimination; a statewide job service; a master plan for economic development; background checks on persons working with children; self-employment for low income persons; and a requirement that group health insurance benefits be pro- vided to part-time employee. Vermont Wages. Under prior law, the State mini- mum hourly wage rate rose from $3.55 to $3.65 on July 2, 1988. A new law was adopted providing for three additional an- nual 10-cent increases that will take effect starting July 2, 1989, and reach a rate of $3.95 in 1991. Any higher Federal Fair Labor Standards Act (FLSA) rate will be matched. A provision was eliminated which had permitted payment at the prior year's rate for employees working for an employer for less than 90 calendar days. Child labor. Children working as actors or performers in motion pictures, theatri- cal productions, radio or television may now be employed after midnight with the written consent of a parent and the Com- missioner of Labor and Industry. Equal employment opportunity. In addi- tion to investigating and enforcing complaints of discrimination in public ac- commodations and real estate, the Hu- man Rights Commission now also has jurisdiction over employment discrimina- tion complaints against State agencies. Investigation and enforcement of com- plaints of private sector and other public sector employment discrimination remain the responsibility of the Attorney General. It was made an unlawful employment practice, under the State fair employment practice law, for an employer, employ- ment agency or labor organization to dis- criminate against a person because of a positive test result from an Htv-related blood test or to request or require an em- ployee or prospective employee to have an Htv-related blood test as a condition of em- ployment. It was also made an unfair labor practice under the State Employees Labor Relations Act for an employer to engage in these activities. (A separate provision bars school districts and educational institu- tions from requesting or requiring any applicant, prospective or current student to have an Htv-related blood test and from discriminating on the basis of a positive test result.) E-41 Labor relation& The State Employees La- hour under the basic minimum wage rate. bor Relations Act was amended to extend Tipped employees in the tourist service coverage to employees of the University and restaurant industries are exempted of Vermont. from this rate schedule. Other laws A 14-member health insur- Washington ance plan board, including the heads of Wages. Initiative number 518 on the No- various State agencies, representatives vember 1988 general election ballot to from business and labor, and advocates of raise the State minimum wage from $2.30 low income and disabled persons, was an hour to $3.85 on January 1, 1989, and created to develop a health insurance plan to $4.25 on January 1, 1990, was ap- for Vermont residents who are not cov- proved by the voters. The measure also ered by health insurance. The board is to extends coverage to farmworkers and do- develop specifications on funding and ad- mestic service employees. ministration, eligibility, and benefits to be provided. The board is to report its find- Hours The law establishing an 8-hour ings and recommendations to the General day on public works contracts now au- Assembly by January 15, 1989. thorizes contractors or subcontractors to Virginia Agriculture The law requiring a permit to operate a migrant labor camp was amend- ed to include all such camps housing one or more workers instead of only those used for living quarters for more than 10 persons. A resolution urged that a joint legisla- tive subcommittee be established to examine the housing situation for migra- tory workers and the advisability and feasibility of a State role in funding for migrant camps used by the State's agri- cultural workers. Other laws The law prohibiting employ- ers from discharging or taking other adverse personnel actions against employ- ees summoned to serve on jury duty or from requiring them to use sick leave or vacation time for the absence was amend- ed to also apply to those summoned or subpoeaed to appear in court, except for defendants in criminal cases enter into agreements with their workers permitting them to work up to 10 hours a day for up to 4 days a week. Under these agreements, overtime pay will still be re- quired after 40 hours a week, but no longer after 8 hours a day. Parental leave Public and private sector employers must now allow an employee to use accrued sick leave to care for his or her child, under the age of 18, with a health condition that requires treatment or super- vision. Employers must also post notices conemning employee's rights including any law, rule or regulation conscening mater- nity disability leave. The law is admin- istered by the Department of Labor and Industries. Child labor. The list of permitted employ- ment activities for persons 18 to 21 years of age in cocktail lounges, bars, and other restricted areas of liquor-licensed premises was amended to add delivering messages, serving food, and seating patrons. Virgin Islands Plant closings. Money was appropriated Wages The minimum wage rate was in- to the Department of Trade and Eco- creased to $3.85 an hour effective May 1, nomic Development for the establishment 1988, with further increases to $4.25 of a business and job retention program. scheduled for January 1, 1989, and to The Department is to select local organi- $4.65 scheduled for January 1, 1990. Be- zations to undertake retention activities, ginning January 1, 1991, and annually including identification of local firms at thereafter, the rate will be revised to be risk of closure, mass layoff, or relocation equal to 50 percent of the average private, out-of-State; initial assessments of firms nonsupervisory, nonagricultural hourly or work forces; and the coordination and wage as determined by the Virgin Islands provision of technical and training assis- Wage Board for the previous November, tance to businesses, unions, employee rounded to the nearest multiple of 5 cents. groups, and work forces. The Department The rate for minors under age 18, full- is also to develop and administer grants to time high school students, and employees study the feasibility of various options for of businesses with gross annual receipts of continuing or renewing the operation of less than $150,000 was raised to $3.50 per industrial facilities that are threatened hour on May 1, 1988, with further in- with closure or have closed. creases to $3.90 and $4.30 scheduled for January 1, 1989, and January 1, 1990. Af- Other laws. Employers must grant a suffi- ter January 1, 1991, the rate for these cient leave of absence from employment workes will be not more than 35 cents an to employees summoned to jury duty, and may not discharge, threaten, or otherwise penalize an employee who receives a sum- mons, responds to the summons, serves as a juror, or attends court for prospective jury service. West Virginia Occupational safety and health. Asbestos abatement project designers, inspectors, contractors, management planners, work- ers, and supervisors must now obtain a license from the Department of Health. Specific training requirements were estab- lished, and employers were prohibited from retaliating against an employee for reporting an instance of wrongdoing or waste or for participating in an investiga- tion, hearing, or inquiry. The Amusement Rides and Amuse- ment Attractions Safety Act was adopted under which the Department of Labor is to adopt rules for the safe installation, re- pair, maintenance, use, operation, and inspection of all amusement rides and at- tractions. Owners or operators must ob- tain a permit from the Department. Rides must be inspected at least annually and may also be inspected periodically without notice. The Department may order a tem- porary cessation of operation of any ride or attraction determined to be hazardous or unsafe. Any serious physical injury or fa- tality is to be reported to the Department within 24 hours of its occurrence. Among various changes involving the regulation of mining, a Division of Health, Safety and Training was created in the Department of Energy, and given responsibility for health and safety in- spections and enforcement and training in surface and underground coal mines, in other specified types of mines, and in ce- ment manufacturing plants. Whistleblower. A whistleblower protection law was enacted applicable to public sector employees. Under the law, employers are prohibited from discharging or otherwise retaliating against an employee because he or she makes a good faith report or is about to report to the employer or appropriate authority an instance of wrongdoing or waste, or because he or she is requested or subpoenaed by an appropriate authority to participate in an investigation, hearing or inquiry, or in a court action. Wisconsin Wages A legislative attempt to increase the basic, adult nonfarm minimum wage rate from $3.35 an hour to the higher of $3.65 or the Federal minimum wage, and other increases for other classes of em- ployees, passed the legislature but was vetoed by the Governor. Consequently, the Department of Industry, Labor and E-42 MONTHLY LABOR REVIEW January 1989 * State Labor Legislation, 1988 Human Relations will continue to estab- lish minimum wage rates by rule, as at present. Parental leave. Employers of 50 or more, including private sector employers and the State government, must now provide unpaid family or medical leave to employ- ees consisting of up to 6 weeks for the birth or adoption of a child; 2 weeks to care for a child, spouse, or parent with a serious health condition; and 2 weeks per- sonal medical leave within a 12-month period. Where practicable, employees are to give employers advance notice of the need for leave. Upon return from family or medical leave, employees are entitled to reinstatement in the same or equivalent position without loss of benefits. Employ- ees are entitled to a continuation of group health insurance coverage during such leave. The law is administered by the De- partment of Industry, Labor and Human Relations for all employees except those employed by the State (the Personnel Commission administers the provisions for these employees). Child labor. Effective July 1, 1989, mone- tary penalttes will be increased for first offenses for persons who employ minors in violation of the child labor law or street trades provisions and for parents who permit such employment. Separate, more severe, penalties of up to $5,000 for em- ployers and $1,000 for parents for each day of the offense were added for second or subsequent violations occurring within 5 years of a previous offense. Civil mone- tary forfeitures will be provided for violations by parents and for first offenses by employers. Criminal penalties will be provided for second and subsequent of- fenses by employers. Equal employment opportunity. Exceptions to the fair employment law conceming dis- crimination on * basis of creed were broadened to perilitoprfit religious as- sociations and related organizations or corporations to give preference to appli- cants or employees of the same or similar religious denomination in hiriug or promo- tion to all positions instead of only to instructional or poliBcymking positions in- cluding chaplains and counselors. In additon, it will not be considered dicrimi- nation because of creed for such associ- atiosand relsaed entiti to givep ce to applicants or emplyees who re to the religious creed of the association if the job description demonstrates that the posi- tion is clearly related to the assocmation's religious teachi and belef. Occupational safesy and healtk A State Emergency Response Commission was created and given responsibility for carry- ing out the State's obligaton with respect to hazardous substances under the Fed- eral Emergency Planning and Com- munity Right-to-Know Act. The Depart- ment of Natural Resources is to recelve notification of, and to investipte the re- lease of hazardous substances. It is also to provide all information contained in any notification to the Commission. Other laws. A pilot State job opportunity business subsidy program was created to provide wage subsidies to qualified busi- nesses in three counties selected on the basis of extent of unemployment, major plant or business closings or announced closings, and other factors. Wyoming Wages The daily overtime pay require- ment for laborers, mechanics, or workers emplQye" on public works projects was elislisated (this had been changed to overtime pay after 10 rather than 8 hours in 1987). The provision that such workers not bV re,quired to work more than 8 ho sa day was remnstated, but with over- time pay due only after 40 hours a week. Preference. Community college districts are now subject to the State resident pref- ereme requirements when letting public wode contracts. Other laws All employees of the State, including university and community col- lege employees, who are hired after June 30, 1988 must become residents of and reside in the State within 90 days of their first day of work or their employment will be terminated. g -FOOTNOTES IThe legislatures did not meet in regular sessioe in Arkansas, Mon- 5Alaaka, California, Connecticut, the District of Columbia, Gum, tana, Nevada, North Dakota, Oregon, and Texan A regular session in Hawai, Maine, Massachusetts, Minnesota, New Hampshire, Puerto North Carolina did not enact significant kgidation in the fields covered Rico, Rhode Island, Vermont, the Virgin Islands, and Washington. by thin articlc Thin article is based on information received by Novem- ber 7, 1988. Florida (1979), Alabama (1980), Utah (1981), Arizona (1984), Colo- radoe, Idaho and New Hampshire (1985), KIansas (1987), and Louisiana 'Unemployment sumurnce and workeascompenationarenot within (1988). the scope of this article. Separate arices on each of these subjects are also published in the issue of the Month LaborReview. 'Hawaii, Kentucky, New Hampshire, and Utah. E-43 1988 FEDERAL LABOR AND EMPLOYMENT SUMMARY excerpted from Major Legislation of the 100th Congress, Congressional Research Service, Ubrary of Congress E-44 CONSTRUCTION INDUSTRY COLLECTIVE BARGAINING: PREHIRE AGREEMENTS AND DOUBLE BREASTING ...inequities perceived.... Section 8(f) of the National Labor Relations Act (NLRA), as amended, permits employees and employ- ers in the construction industry to sign prehire agree- ments which stipulate the wages and working conditions on a particular construction project before the actual hiring of workers has occurred. In response to rising non-union competition, increasing numbers of employers have been repudiating their prehire agree- ments and establishing non-union affiliates to perform work previously performed by their union workers, a practice known as "double breasting." Unions in the construction industry argue that double breasting and repudiation of prehire agreements are unfair impedi- ments to unionization in the construction industry. Contractor spokesmen defend the practice as legally permissible and enhancing efficiency and competition. To redress what some individuals perceive as the inequities of this situation, legislation was introduced in both the 99th and 100th Congresses. H.R. 281, passed by the House on June 17, 1987, would have amended Section 8(f) of the NLRA, the provision of the NLRA which permits employers and employees in the construction industry to enter into prehire agree- ments. The proposed amendment would have added language stating that a prehire agreement imposes the same obligations on an employer as a union representa- tion election. The effect of this amendment would have been to make prehire agreements binding and enforceable, since the collective bargaining agree- ments that follow a union representation election are binding and enforceable. To prohibit the practice of double breasting, H.R. 281 would have amended the current definition of the term "employer" in Section 2(2) of the NLRA. The proposed amendment explicitly defined the circum- stances under which affiliated union and non-union businesses in the construction industry would be con- sidered a single employer. The amendment stated that two business entities performing work of the same type and in the same geographic area covered by a collec- tive bargaining agreement to which one of the entities is a party, would be considered a single employer if, in addition, the two entities share, either directly or in- directly, substantial common ownership, substantial common management, or substantial common control. LEGISLATION H.R. 281 (Clay et al.) Construction Industry Labor Law Amendments of 1987. Introduced Jan. 6, 1987; referred to Committee on Education and Labor. Hearings held by Subcommittee on Labor and Management Relations Mar. 4. Amended bill forwarded to full committee. Reported, amended, June 8. Passed House, amended, June 17. Placed on Senate Calendar (no. 202) June 23, 1987. Gail McCallion THE DAVIS-BACON ACT ...legislation introduced to repeal or amend... The Davis-Bacon Act of 1931 (as amended) re- quires that construction contracts entered into by the Federal Government specify minimum wages to be paid to the various classes of laborers and mechanics working under those contracts. "Minimum wages" are defined by the Act as those determined by the U.S. Secretary of Labor to be prevailing in the locality of the project for similar crafts and skills on comparable construction work. Under a 1964 amendment, the con- cept of wage was expanded specifically to include a fringe benefit component. The Act covers direct Federal construction, altera- tion or repair of public buildings and public works, including painting and decorating, where the contract is for more than $2,000, and applies to such contracts entered into by all agencies of the Federal Govern- ment and the District of Columbia. In addition, the Davis-Bacon "principle" of requiring payment of lo- cally prevailing wage rates has been written into more than 50 program statutes at the Federal level. Further, some States have enacted "little Davis-Bacon Acts" within their respective jurisdictions. In 1934, the related Copeland "anti-kickback" Act was adopted. During the 1930s, there had been allega- tions that employers formally paid the prevailing wage as required under the Davis-Bacon Act, but then re- quired "kickbacks" of portions of that wage from their employees. The Copeland Act (as administered) re- quires weekly reporting of wages actually paid and an affirmation from employers that any deductions from wages due to employees are proper. During recent years, some critics of the Davis-Ba- con Act have urged that the Act be repealed -- or significantly modified, if total repeal is not viable. At the same time, some have sought the elimination of the Davis-Bacon provisions from the various Federal pro- gram statutes into which they have been incorporated. Some latitude rests with the Secretary of Labor to alter the manner in which the Act is enforced through the rulemaking process. Legislative activity on these ques- tions was substantial in the 99th and 98th Congresses but resulted in modest change. In the 100th Congress, oversight hearings on the Davis-Bacon Act were conducted by the Subcommit- tee on Labor Standards, House Committee on Educa- tion and Labor. On June 24, 1987, the Subcommittee voted to report H.R. 2216, Davis- Bacon reform legis- lation proposed by Representatives Murphy and Haw- kins. The measure was approved by the full Committee on Aug. 4, 1987, with the understanding that it would be brought to the floor under an "open rule." In addi- tion, several other committees examined the Davis- Bacon issue and critics of the Act sought to add deli- mitine Drovisions to various program statutes. E-45 When by May 3, 1988, the Murphy/Hawkins proposals to strengthen the Davis- Bacon Act had not reached the floor, critics of the Act sought to add alternative language, prepared by Representatives Stenholm and Dickinson, to the National Defense Au- thorization Act, FY89 (H.R. 4264). In back-to-back floor votes, the House rejected the Stenholm and Dic- kinson amendment (to weaken Davis- Bacon) and adopted, as an amendment to H.R. 4264, the substance of the Murphy/Hawkins measure (H.H. 2216). No comparable provisions were included in the Senate Defense legislation (S. 2355). In conference, the Davis- Bacon provisions were dropped. Thus, the Act emerged from the 100th Congress unchanged. LEGISLATION H.R. 2216 (Murphy, A. and Hawkins) Amends the Davis-Bacon Act to revise the standard fc- coverage, to increase the coverage threshold to $50,000 for new construction and to $15,000 for alteration, repair, etc., and for other purposes. Introduced Apr. 29, 1987; referred to Committee on Education and Labor. Reported, amenaed, Feb. 9, 1988 (H.Rept. 100-504). The ubstance of H.R. 2216 was added to H.R. 4264, the National Defense Authorizition Act, FY89, as a floor amendment, M'ay 3, 1988. The language was subsequently dropped in conference. William G. Whittal,tr DRUG TESTING IN THE WORKPLACE ...considerable legislative activity... National attention has focused on the problem of drug abuse. The deaths of several sports stars from drug overdoses and the initiation of a "war against drugs" by President Reagan have helped fuel the media and public interest in drug abuse. Although a recent study indicated that drug use peaked in 1979 and has been declining slightly since (with the exception of cocaine use which has been rising), public awareness and concern about this issue is at an all time high. In addition, both private and public employer con- cerns about drug abuse have been growing as more information about the costs of employee drug abuse have become known. In response, more and more em- ployers are instituting employee testing programs. In support of drug testing, employers and other propo- nents argue: (1) workers who abuse drugs have lower productivity; (2) drug users have more health prob- lems and hence generate higher employer insurance premiums; (3) drug users have higher rates of absentee- ism and on-the- job accidents; (4) drug users may be responsible for lawsuits against the employer by em- ployees or customers who are injured by drug abusers; and, (5) drug users may steal from their employer to support their drug habit or disclose confidential material in exchange for money or drugs. However, unions, employees and other opponents of employee drug testing argue: (1) drug tests violate the Fourth Amendment prohibition against unreasona- ble searches and seizures by the government; (2) the tests are often inaccurate; (3) a positive test indicates only the presence of certain quantities of drug residue -- it is not evidence that an individual is impaired in his/her job performance; (4) there is potential for abuse of the information revealed through the test by an employer; and, (5) employers do not always enforce drug use regulations uniformly. There was considerable legislative activity on drug testing in the 100th Congress. S. 1041, reported to the Senate in April 1987, would have required the Secre- tary of Transportation to establish drug testing policies for transportation workers which include five types of tests: random, pre- employment, post-accident, period- ic recurring, and reasonable suspicion testing. Subse- quently, S. 1485, the Air Passenger Protection Act of 1987, was passed by the Senate in October 1987 (passed as H.R. 3051, with amendments, in lieu of S. 1485). An amendment to this bill required drug testing of tran- sportation workers. The language of this amendment was almost identical to the language of S. 1041. The drug testing amendment, however, was not included in the version of the bill passed earlier by the House. In addition, H.R. 4748, which would have required the Secretary of Transportation to issue regulations estab- lishing drug and alcohol testing of railroad employees, was passed by the House (amended) on Sept. 20, 1988. Unlike S. 1041 and H.R. 3051, however, this bill would have required employers to refer employees with posi- tive test results to a rehabilitation program. Employees who failed to be rehabilitated could be dismissed. LEGISLATION H.R. 4748 (Luken et al.) Railroad Drug Abuse Prevention Act of 1988. Introduced June 3, 1988; referred to Committee on Energy and Com- merce. Reported, amended, Aug. 9, 1988. Passed House, amended, by voice vote Sept. 20, 1988. Placed on Senate Calendar No. 999 under General orders Sept. 26, 1988. S. 1041 (Hollings as al.) Transportation Employer Safety and Rehabilitation Act of 1987. S. 1041, which includes portions of S. 356 and S. 362, passed Committee on Commerce Committee (19-1) Mar. 10, 1987. Reported and placed on Senate Calendar no. 97 under General Orders Apr. 15. Placed on Senate Calendar under subjects on the table Oct. 30, 1987. S. 1485 (Ford et al.) Air Passenger Protection Act of 1987. An amendment to this bill requires drug testing of transportation workers. The language of this amendment is almost identical to the lan- guage of S. 1041. Introduced July 10, 1987; referred to Com- mittee on Commerce. Reported, amended, Aug. 3, 1987. Senate passed companion measure, H.R. 3051, with amend- ments, in lieu of S. 1485, Oct. 30, 1987. Gail McCallion E-46 FAIR EMPLOYMENT RIGHTS OF CONGRESSIONAL EMPLOYEES ...House moves to end its exemption from bias protection laws... Adopting new civil rights protections for its em- ployees on Oct. 4, 1988, by a vote of 408-12, the House of Representatives moved to end its exemption from bias protection laws set for most other workers in pri- vate as well as public sector employment. Such work- ers are covered under Title VII of the Civil Rights Act of 1964, which is enforced by the Equal Employment Opportunity Commission. Congress exempted itself on grounds that coverage would mean that an executive branch agency would have regulatory power over the actions of congressional offices and legislative branch agencies, raising constitutional questions regarding separation of powers in the three branches of govern- ment, as well as "speech and debate clause" problems, and questions relating to Congress' disciplinary au- thority over itself- H.Res. 558 (Panetta) bars discrimination in employ- ment in the House of Representatives based on race, color, national origin, religion, sex (including marital or parental status), handicap, or age, and addresses the constitutional questions by establishing a legislative mechanism for enforcement. Exemptions in the resolu- tion allow Members to give preference in employment to individuals from their own States or districts and to those of their own political party affiliation. The meas- ure establishes a special Office of Fair Employment Practices to handle complaints of discrimination and to provide counseling and mediation services. Under the resolution, House employees have access to the same range of remedies available to other workers under civil rights law, including employment, promotion, back pay, reinstatement, and legal fees. H.Res. 558 applies only to the 100th Congress, since House rules are newly approved for each Congress, but reenact- ment of the measure is not expected to be opposed in the 101st Congress. During debate on the floor, sponsors argued that fairness demanded that Congress apply the same stand- ards to itself as it has imposed on other employers. Members also were cautioned that lawsuits against them were possible at present because no internal procedure existed to remedy employee complaints of discrimination. With such a procedure in place, it was argued, courts would not accept jurisdiction over dis- crimination lawsuits by House employees. Noting the increasing pressures on the House to adopt other em- ployee protection laws, such as those provided under the Fair Labor Standards Act, for example, those in favor of the measure urged passage as a necessary show of good faith. LEGISLATION H.Res. 558 (Panetta) Fair Employment Practices Resolution. Provides for fair employment practices in the House of Representatives. In- troduced Sept. 29, 1988; referred to Committee on House Administration. Adopted (408-12) Oct. 4, 1988. Leslie w. Gladstone THE FEDERAL MINIMUM WAGE ...wage remains $3.35 an hour... The Federal minimum wage rate is set by the Con- gress, fixed in statute, and remains at the congressional- ly mandated level until the Congress acts to alter it. Under the 1977 Fair Labor Standards Act (FLSA) amendments, the Federal minimum wage was set (fol- lowing a series of step increases) at $3.35 per hour -- to take effect on Jan. 1, 1981. It remains unchanged. Minimum wage and overtime pay laws had been considered by the States from the first years of the 20th century. But the State laws seem to have been of limit- ed scope, with few penalties, and poorly enforced. Where the laws were stronger and more rigorous en- forcement was attempted, they were challenged in the courts and, most often, declared unconstitutional. Fi- nally, in the 1937 case of West Coast Hotel v. Parrish, the United States Supreme Court sustained a Washing- ton State labor standards statute and, thereafter, the States and the Federal Government rushed to enact new wage and hour legislation. The Fair Labor Standards Act (FLSA) of 1938 established Federal minimum wage and overtime pay requirements for covered workers and regulated child labor. Relatively few workers, however, were cov- ered. Since 1938, there has been a gradual expansion of coverage and a strengthening of wage/hour require- ments. The Act has undergone major amendment on six different occasions: in 1949, 1955, 1961, 1966, 1974, and 1977. While fine tuning has occurred at various times (most recently in the 99th Congress), the most recent general amendments are those of 1977. Some have asked: Is the minimum wage any longer useful? Does it serve, as the Congress in 1938 project- ed, to eliminate "labor conditions detrimental to the maintenance of minimum standards of living necessary for the health, efficiency and general well-being of workers?" Or, does it create unemployment by pricing the least skilled or least competitive workers out of jobs? Does it, as some suggest, constitute virtually the only earnings protection for the non- union low-skilled worker? Is the Federal minimum wage high enough? Should Congress raise it? Should the minimum scale include a fringe benefit component? Should there be significant broadening of coverage -- and should en- forcement be made stronger? Might Congress usefully index the minimum wage to an independent economic variable? In the 100th Congress, legislation to raise the Fed- eral minimum wage (and to make other changes in the FLSA) was reported from the Committee on Educa- tion and Labor, but no floor action was taken. In the Senate, minimum wage legislation, reported from the Committee on Labor and Human Resources, was the subject of a lengthy floor debate prior to being re- turned to the calendar. Neither House took up the issue of indexation. In the Senate, floor debate focused upon various sub-minimum wage proposals. E-47 LEGISLATION H.R. 1834 (Hawkins)/S. 837 (Kennedy) Mandates an increase in the Federal minimum wage to $3.85 per hour on Jan. 1, 1988, to $4.25 per hour on Jan. 1, 1989, and to $4.65 per hour during the year beginning Jan. 1, 1990. After Jan. 1, 1991, and on January I each year thereafter, the Federal minimum wage would be "equal to 50% of the average private, nonsupervisory, nonagricultural hourly wage as determined by the Bureau of Labor Statistics of the Department of Labor for the previous November, rounded to the nearest multiple of 5 cents." H.R. 1834 intro- duced Mar. 25, 1987; referred to Committee on Education and Labor. Reported, amended (H.Rept. 100-560), Mar. 31, 1988. S. 837 introduced Mar. 25, 1987; referred to Committee on Labor and Human Resources. Reported, amended (S.Rept. 100-430), July 26, 1988. William G. Whittaker OCCUPATIONAL DISEASE NOTIFICATION ...feasible to alert workers?... In May of 1986, an Occupational Safety and Health Administration (OSHA) Hazard Communication Standard went into effect requiring that workers be informed by their employers about the health hazards in their work environment. At issue is whether or not this concept of informing workers should be carried one step further. The next step would be to require that workers be specifically notified when their risk of incurring occu- pational disease from their workplace exposures ex- ceeds a certain level. Some argue that adopting a policy of notifying workers would open up a Pandora's box of cost and problems without a commensurate gain in health in safety. Others argue that workers have every right to know what their chances are of becom- ing sick from their workplace exposures. Those who agree that workers should be notified when their risk of incurring occupational disease ex- ceeds a certain level do not necessarily agree on whether legislation is needed to address this issue. Some point out that administrative policies and proce- dures to make determinations and accomplish notifica- tion are already in place under the Occupational Safety and Health Act so that no new legislation is necessary. Early in the 100th Congress, two similar bills, H.R. 162 (Gaydos) and S. 79 (Metzenbaum), were intro- duced. H.R. 162 was reported on June 26, 1987 (H.Rept. 100-194) and passed the House on Oct. 15, 1987. S. 79 was reported on Sept. 23, 1987 (S.Rept. 100-166). It was withdrawn from Senate floor consid- eration by its author on Mar. 29, 1988, after the Senate voted for the fourth time in 7 days not to end a filibust- er on the bill. The basic issue for Congress in considering Occu- pational Disease Notification legislation is whether it is appropriate and feasible to require that workers be given some indication of their probability of incurring an occupationally related disease. If the answer to this question is yes, the remaining issues are: what level of risk should trigger notification; who should do the notifying; what medical testing or evaluation should be offered notified workers, and who should pay for these services; how and by whom should these requirements be enforced; and what level of funding is appropriate to support the legislation. LEGISLATION H.R. 162 (Gaydos et al.) High Risk Occupational Disease Notification and Preven- tion Act of 1987. Introduced Jan. 6, 1987; reported, amend- ed, by Committee on Education and Labor (H.Rept. 100-194) June 26. Passed House, amended, Oct. 15, 1987. S. 79 (Metzenbaum et al.) High Risk Occupational Disease Notification and Preven- tion Act of 1987. Introduced Jan. 6, 1987; approved by Sub- committee on Labor Apr. 28. Marked up by Committee on Labor and Human Resources July 8 and 22. Reported, amended (S.Rept. 100-166), Sept. 23, 1987. Considered by Senate which filibustered the bill for a week until it was withdrawn by its author Mar. 29, 1988, after filibuster. Mary Jane Bolle PLANT CLOSING LEGISLATION ...new measure becomes law... According to various estimates, between 650,000 and a million or more workers may have been dislocat- ed from their jobs through plant closings or permanent layoffs, on average, during each of the years 1981- 1986. To address the plight of dislocated workers, two similar versions of the Economic Dislocation and Worker Adjustment Assistance Act (H.R. 122 and S. 538) were introduced. The Act would have provided a $980 million three-pronged program of preventive and remedial assistance to workers affected by disloca- tion: (1) a general program of adjustment services to dislocated workers, administered by the Department of Labor; (2) various specific demonstration and pilot pro- grams carried out through agreements with the Secre- tary of Labor and State or local organizations; and (3) a program of advance notification to workers and government units cases of proposed plant closings and mass layoffs. The first two parts, comprising a dislocated worker assistance program, were recommended by the De- partment of Labor's Task Force on Worker Disloca- tion. The third part, worker prenotification -- a subject upon which Task Force members could not agree -- has been under regular consideration in Congress since 1973. E-48 Basic arguments in favor of dislocated worker as- sistance are that such programs as plant-specific work- er assistance, remedial education programs, vocational and on-the-job training, and income support are need- ed to help workers -- especially unskilled workers who have the most difficult time finding re-employment. Basic arguments against such assistance are that it will just become another costly ineffective part of the wel- fare system and that primary emphasis should be placed on generating jobs, not rescuing those that are obsolete. Basic arguments in favor of prenotification are that a few months' notice can assist workers in adjusting to their imminent unemployment and in systematically going about finding re-employment. Arguments against prenotification are that such prenotification may send a message of insolvency to creditors and potential clients, and may encourage some workers needed to close down the company to leave early, placing an undue burden on management. S. 538 passed the Senate and was included as part of the Omnibus Trade and Competitiveness Act (S. 1420) on July 9, 1987. S. 1420 passed the House as part of H.R. 3 on Apr. 21, and passed the Senate on Apr. 27, 1988. President Reagan vetoed H.R. 3 on May 24. Later that day the House overrode the veto. The Sen- ate sustained the veto on July 8, 1988. Subsequently, the plant closing provisions were introduced separate- ly as S. 2527. This bill passed both the Senate and the House with sufficient votes to override a Presidential veto. On August 2, President Reagan said he would neither sign nor veto the bill and it became law Aug. 4, 1988. LEGISLATION P.L 100-379, S. 2527 Worker Adjustment and Retraining Notification Act. Re- quires advance notification of plant closings and mass lay- offs. Introduced June 16, 1988. Passed Senate, amended, July 6. Passed House July 13. President agreed not to veto meas- ure Aug. 2. Became law Aug. 4, 1988. H.R. 1122 (William Ford et al.) Economic Dislocation and Worker Adjustment Assistance Act. Introduced Feb. 18, 1987; reported, amended, by Edu- cation and Labor Committee June 9. Passed House as part of the Omnibus Trade and Competitiveness Act (H.R. 3) Apr. 21, 1988. President Reagan vetoed H.R. 3 May 24. House overrode veto May 24. Senate sustained veto July 8, 1988. S. 538 (Metzenbaum et al.) Economic Dislocation and Worker Adjustment Assistance Act. Introduced Feb. 19, 1987. Reported, amended, by Com- mittee on Labor and Human Resources (S.Rept 100-62), May 19, 1987. Passed Senate and incorporated into S. 1420 July 22. S. 1420 included as part of the Omnibus Trade and Com- petitiveness Act (H.R. 3) July 27. Senate agreed to confer- ence report on H.R. 3 Apr. 27, 1988. President Reagan vetoed H.R. 3 May 24. House overrode veto May 24. Senate sustained veto July 8, 1988. Mary Jane Bolle POLYGRAPH TESTING: EMPLOYEE AND EMPLOYER RIGHTS ...prohibit or limit testing?... Polygraph testing of employees has existed for many years, but in the most recent decade its use by employers has increased dramatically. According to a Nov. 26, 1986 New York Times article, approximately two million private sector job applicants and em- ployees underwent polygraph tests in 1985, three times the number who took the test in 1975. Roughly 75% of those tested were job applicants. The American Polygraph Association estimates that fully 98% of polygraph tests are administered in private industry with only 2% of the total administered in the public sector. In a social climate in which drug use has become very prevalent and many business failures are attribut- ed to employee theft, employers argue that employee testing is necessary to insure that employees are honest and drug free. Employees and unions, however, have objected vociferously to polygraph tests arguing that: the tests are an invasion of employees' privacy; many polygraph testing programs are unfairly and inconsist- ently applied; and, the scientific validity of the poly- graph test is questionable. There is a lot of skepticism in the scientific com- munity regarding the validity of polygraph tests. Al- though most polygraph experts agree that polygraph tests are able to measure physiological changes, they disagree on the test's ability to correlate these physio- logical changes with truth and deception. Estimates of the test's accuracy in correctly detecting guilt range from a low of 35% to a high of 100%. Many experts argue that one serious problem with polygraph tests is that the difficulty in interpreting test data generates a large number of "false positives?, i.e., innocent people incorrectly identified as deceitful. However, most agree that the polygraph test is often a successful tool in obtaining confessions. Legislation was passed (P.L. 100-347) in the 100th Congress restricting the use of polygraphs by private employers. H.R. 1212 was passed by the House on Nov. 4, 1987. H.R. 1212 would have prohibited the use of polygraphs by most private employers. The Senate passed H.R. 1212 in lieu ofS. 1904on Mar. 3, 1988. The Senate version, unlike the House version, would have permitted employers under certain conditions to use polygraph tests to investigate specific incidents of al- leged employee misconduct. Both the House and Sen- ate versions exempted Federal, State and local government and some industries from coverage. Conferees agreed on a compromise measure on May 17, 1988 which, like the Senate version, permits polygraph use under certain conditions to investigate alleged employee misconduct. Exempted from cover- age in the compromise are Federal, State and local governments; national security agencies or contrac- tors; private security firms; and, drug companies. An exemption in the Senate version for nuclear power- plants was not included in the compromise measure. The House approved the Conference version on May 16; the Senate approved it on June 9; the measure was E-49 signed into law on June 27, 1988 (P.L. 100-347). LEGISLATION P.L. 100-347, H.R. 1212 Employee Polygraph Protection Act. Introduced Feb. 24, 1987; referred to Committee on Education and Labor. Hear- ings held by the Subcommittee on Employment Opportuni- ties Mar. 5, 1987. Executive comment was requested from the Department of Labor Mar. 23. Committee consideration and markup session held June 10. Amended version of H.R. 1212 ordered reported June 10. Reported, amended, July 9, and placed on Union Calendar No. 126. Passed House, amended, Nov. 4. Placed on Senate Calendar Nov. 6, 1987. House agreed to request for conference and Speaker appoint- ed conferees, Mar. 22, 1988. Conference report filed (H.Rept. 100.659) May 26. House agreed to conference re- port (251-120) June 1, 1988. Signed into law June 27, 1988. S. 1904 (Kennedy et al.) Polygraph Protection Act of 1987. Introduced Dec. 1, 1987; referred to Committee on Labor and Human Re- sources. An amendment in the nature of a substitute ordered reported Feb. 3, 1988. Reported (S.Rept. 100-284) and placed on Senate Calendar Feb. I1. Senate passed compan- ion measure H.R. 1212, with amendments, in lieu of S. 1904, Mar. 3. Senate agreed to compromise measure (68-24) June 9, 1988. Gail McCallion LEGISLATION P.L 100.71, H.R. 1827 Supplemental Appropriations Act, FY87. Expands the conditions under which drug testing would be allowed. Re- quires uniform testing plans by Federal agencies, the deve- lopment of uniform laboratory certification standards, and full access by employee to test results. Introduced Mar. 25, 1987; referred to House Committee on Appropriations. Re- ported to House (H.Rept. 100-28) Mar. 25. Passed House, amended, Apr. 23; referred to Senate Committee on Appro- priations. Reported to Senate (S.Rept. 100-48) May 1. Called up by unanimous consent in Senate; passed Senate, amended June 2. Conference report (H.Rept. 100-195) filed June 27; agreed to by House and Senate. Signed into law July 11. 1987. S. 1041 (Hollings) Transportation Employee Safety and Rehabilitation Act of 1987. Provides for testing for the illegal use of alcohol or controlled substances by the operators of aircraft, railroads, and commercial motor vehicles. Air traffic controllers are among the Federal employees covered by this legislation. Introduced Apr. 15, 1987; referred to Committee on Com- merce, Science, and Transportation. Reported to Senate (S.Rept. 100-43). Placed on calendar in Senate Oct. 30, 1987. Sharon S. Gressle DRUG FREE FEDERAL WORKPLACE ...random drug tests for employees... One element of President Reagan's Drug Free America Program is to achieve a drug-free Federal workplace. Toward this end, he issued Executive Or- der 12564 on Sept. 15, 1986. Each agency is required to establish random drug testing programs for em- ployees in sensitive positions. In May 1988, the Depart- ment of Health and Human Services submitted to Congress an analysis of the agency plans specifying the criteria and procedures for designating employees for drug testing, along with a listing of position titles for those to be tested. Also, HHS has issued the scientific and technical guidelines which detail the collection procedures, chain-of-custody protections, and general laboratory specifications. In conjunction with the ran- dom testing, each agency is required to establish an Employee Assistance Program through which those employees who test positive may receive counseling and rehabilitation. It is expected that most of the agen- cies will commence testing by the end of 1988. The uniformed military services have coniducted drug testiitg for several years. Alonig witlh several non- defense agenicies, they beganl limited testing of civilian personnel prior to the Executive order. Legislationi was proposed vlicliv would modify the program. The House and Seniate reaclhed agreemlienlt oii limiting language in the FY87 Supplensental Appro- priationis (H.R. 1827). Employee organiizationis have filed suit to enjoin the Federal Governnsent frons im- plementing the program. A Justice Departmenit mo- tion to dismiss was denied and the case hias beets heard; a decision is pending. In July 1988, a permatient injunc- tion was issued against the Justice Department's plan for testing its employees. CHILD DAY CARE ...more than 100 bills with day care provisions... During the 100th Congress, more than 100 bills with child day care provisions, representing a variety of approaches, were introduced; and hearings were held on the topic by a wide range of Committees. The bills and hearing testimony reflected differing percep- tions regarding what should be the Federal role in the area of child care. The Federal Government currently funds a variety of programs that provide support for child care ser- vices, training for child care workers, child nutrition, tax benefits for employers, and assistance for parents to work. The broad range of Federal programs has been criticized by some as being uncoordinated and un- focused, while others maintain that the range of Feder- al progams is responsive to the many purposes of and needs for day care. In addition, the question of what should be the extent of Federal involvement in the area of day care generally has been subject to debate. It is also argued by some that Federal programs should better address perceived availability problems. The availability of day care is typically defined in terms of quantity, quality, and cost. Concerns reflect a variety of perceptions regarding the need for various forms of day care; the need to regulate the quality of care; and the cost of obtaining adequate care. The complexity of the debate surrounding the defi- nition of the Federal role in the area of child care has been exacerbated by the lack of comprehensive data on the number or characteristics of child day care facili- ties in this country and on the need for child care services. E-50 Major child care legislation intended to address the availability of child care for families at various income levels (the Act for Better Child Care Services of 1988, H.R. 3660/S. 1885, known as the ABC bill) failed to receive consideration on the floor of either the House or Senate. This bill and a variety of alternative propos- als were a focus of debate. Several other bills, with less controversial child care provisions, were enacted. These new laws include major welfare reform legislation (P.L. 100- 485), which includes provisions to address the child care needs of welfare mothers participating in work and training programs; and legislation with child care provisions targeted at specified populations, including provisions to provide for early childhood development services for disadvantaged families. The ABC bill was reported by both the Senate Labor and Human Resources and the House Educa- tion and Labor Committees. Both versions of the bill would have authorized $2.5 billion for FY89 for a variety of child care activities, including a Federal matching grant program under which States that met certain criteria could receive Federal grants to assist them in providing child care services, primarily for low- and moderate-income families. The definition of eligible children differed under the two versions of the ABC bill, however. Both bills required Federal child care standards to be developed. Under the House bill, participating States would have been required to en- sure child care providers regulated by the State, whether or not they received funds under the legisla- tion, met or exceeded the standards within 5 years after they were established. Under the Senate bill, providers receiving public assistance would have been required to comply with the standards within that time frame. The bills failed to receive floor action in either body, reportedly due at least in part to concerns about the parameters of Federal assistance for church- provided child care; the appropriateness of Federal child care standards; questions regarding whether Federal sup- port should be limited to low-income families; and con- cerns about how to ensure parents could use the child care of their choice. Alternative bills, which emphasized serving low- income families, incentives for child care providers, and using the tax system to provide Federal aid were also debated. These bills included the Child Care Ser- vices Improvement Act of 1988 (S. 2084/H.R. 4002), a bill to amend the Internal Revenue Code to allow for a refundable tax credit for preschool dependents and to repeal the child and dependent care tax credit (H.R. 3944/S. 2187), and the Choices in Child Care Act of 1988 (H.R. 4768/S. 2546). These bills varied regarding the types of child care support they would have au- thorized, the authorization levels, and the eligibility criteria for participants. Two pieces of legislation to establish early child- hood development programs received action. Con- gress enacted the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improve- ment Amendments of 1988 (P.L. 100-297), which, among other things, authorizes several early childhood education programs that could be provided in a day care setting. In addition, the Senate Labor and Human Resources Committee held hearings on Smart Start: The Community Collaborative for Early Childhood Development and Child Care Assistance Act of 1988 (S. 2270). Smart Start would have authorized a Federal matching grant program for States and localities to establish or expand early childhood development pro- grams for full work days during the full calendar year to serve primarily 4-year- olds. During the welfare reform debate, concern was expressed about the Federal role in promoting work, education, and training to help welfare mothers become self-sufficient, and the need for child care ser- vices for these mothers to participate in such progams. Efforts to address these concerns were included in the Family Support Act of 1988 (P.L. 100-485). The new law authorizes a Federal matching entitlement pro- gram for States for the costs of day care provided (up to specified levels) for AFDC recipients who partici- pate in a new program called JOBS (Job Opportunities and Basic Skills Program). Those with children under age 6 who are required to participate are to participate part- time and to be guaranteed child care. The law also authorizes State grants to improve child care lic- ensing and registration in the States and to monitor the child care provided under the program; authorizes demonstrations relating to the effect of early child- hood development programs and projects to employ welfare mothers as day care providers; and amends the child and dependent care tax credit program under Section 21 of the Internal Revenue Code to reduce the age of eligible children from under age 15 to under age 13. Other legislation enacted in the 100th Congress provides support for child care for specified popula- tions, including the handicapped, homeless, residents of public housing projects, and Veterans' Administra- tion employees; and amends the child and dependent care tax credit program to limit expenditures for over- night camps. LEGISLATION P.L. 100-485 Family Support Act of 1988. Requires certain AFDC recipients to participate in a new education, work and train- ing program called JOBS (Job Opportunities and Basic Skills Program). Under this program, States are entitled to open- ended Federal matching at their Medicaid matching rate for the costs of day care provided for up to $175 per month per child age 2 and older and $200 per month per child under age 2, as long as these amounts do not exceed local market rates. Parents of children under age 3 are to be exempt from the JOBS program, except States may require participation of those with children age 1-3. Those with children under age 6 who are required to participate are to participate part-time E-51 ana ire to be guaranteed child care. Provides for a transition- al day care program for those who become ineligible for AFDC benefits. States may provide the child care services directly, arrange for care, or reimburse families for the cost of the care up to the specified amounts. The day care is to meet applicable State and local standards and the day care providers are required to meet other specified criteria. Also authorizes $13 million for each of FY90 and FY91 for State grants to improve child care licensing and registration and to monitor the child care provided under the program; author- izes demonstrations relating to the effect of early childhood development programs and projects to employ welfare mothers as day care providers; and reduces the eligible age under the child and dependent care tax credit program under Sec. 21 of the Internal Revenue Code from under 15 to under 13. H.R. 3660 (Kildee et al.) Act for Better Child Care Services of 1988. Would have authorized Federal matching grants to States for a variety of child care services. Seventy-five percent of the funds were to be for care of children under age 13 in families whose incomes were less than 115% of the State median and where the parents worked, were seeking work or were enrolled in school. Fifteen percent of the funds were to improve the quality and availability of child care for all families. Three percent of the funds were to encourage business to support or provide child care services. The bill mandated the deve- lopment of Federal child care standards. Participating States would have been required to ensure child care providers in the State met or exceeded the standards within 5 years after they were established and to monitor compliance. Reported by the House Education and Labor Committee Sept. 27, 1988. H.R. 4768 (Rep. Tauke et al.)/S. 2546 (Sen. Quayle and Hatch) Choices in Child Care Act of 1988. Would have established a State grant program for certificates for child care services for low-income families to work or receive training; author- ized a variety of dependent care activities; restricted the use of the child and dependent care tax credit; and established a new income tax credit for families with preschool age chil- dren, as well as other tax provisions. Introduced June 8, 1988 in the House and June 21, 1988 in the Senate. S. 1885 (Dodd et al.) Act for Better Child Care Services of 1988. Similar to H.R. 3660 (see above). Major differences included a requirement that minimum Federal standards would have applied to pub- licly assisted programs rather than to all regulated child care providers in the State; a requirement that services were to be provided for children from families with incomes less than 100% of State median rather than 115%; a..d a requirement that providers funded under the Act were to serve families with very low incomes. In addition, the Senate version of the bill did not include specified funding to encourage businesses to support or provide day care. Reported by the Senate Labor and Human Resources Committee Aug. 10, 1988. S. 2270 (Kennedy) Smart Start: The Community Collaborative for Early Childhood Development and Child Care Assistance Act of 1988. Would have authorized a Federal matching grant pro- gram for States and localities to establish or expand early childhood development programs to full work days during the full calendar year for primarily 4-year-old children. At least half of the children served were to be from families with iticomes below 115% of poverty; and services were to be provided on a sliding fee scale basis but could not exceed 10% of the family's gross income and were to be without charge to low-income families. Introduced April 12, 1988. The Senate Labor and Human Resources Committee held hearings on the bill Feb. 23, prior to its introduction, and again on May 11. Sharon Stephan SELECTED WOMEN'S ISSUES IN THE 100TH CONGRESS ...designed to address special interests of women... Legislation in the 100th Congress designed to ad- dress special interests of women included proposals relating to parental and medical leave benefits, pay practices in the Federal Government and the private sector, prohibition of sex discrimination in federally assisted programs or activities, the equal rights amend- ment, and abortion funding under Federal programs. Of these major initiatives, only the prohibition of sex discrimination in federally assisted programs was enacted; a bill to assess pay practices in the Federal Government was passed by the House, and proposals relating to parental and medical leave were reported to the floor in both Chambers. Legislation was introduced to create a Federal standard for two kinds of employee leave benefits: a parental or family care leave and a leave for temporary medical disabilities. The leaves were to be unpaid, al- though a study of ways to provide paid leave would have been mandated. Health benefits would have been continued during leave and an employee would have had the right to reinstatement at the same or a compa- rable job. Bills promoting changes in pay practices ("compa- rable worth") in the public and private sectors ad- dressed the question of whether discriminatory wage- setting practices exist. Legislation introduced would have required Federal agencies to establish guidelines and additionally would have mandated a study of wage-setting practices within the Federal job classifi- cation system. The House passed H.R. 387 on Sept. 29, 1988. Two different proposals were introduced to define the extent of coverage of civil rights laws prohibiting discrimination in federally assisted programs and ac- tivities. The question addressed was whether to over- turn the 1984 Supreme Court Grove City decision and restore broad coverage of all federally assisted entities, or to limit coverage to federally assisted educational institutions. On Jan. 29, 1988, the Senate amended and passed S. 557, restoring broad coverage. On March 2, the House passed S. 557. The President's veto of the bill was overridden Mar. 22, 1988 (P.L. 100-259). E-52 A proposed amendment to the Constitution to en- sure equal rights for women would have required that government at all levels treat women and men equally as citizens and individuals under the law. It would have prohibited sex-based classifications that specifi- cally deny equality of rights or violate the principle of nondiscrimination with regard to sex. Measures relating to abortion in the 100th Congress included both proposed amendments to the Constitu- tion to nullify or limit Supreme Court decisions affirm- ing abortion rights and statutory approaches to limit Federal involvement in abortion or abortion-related activities. LEGISLATION P.L. 100-259, S. 557 Civil Rights Restoration Act of 1987. Restores the broad scope of coverage and clarifies the application of Title IX of Section 504 of the Rehabilitation Act of 1973, and Title VI of the Civil Rights Act of 1964. Introduced Feb. 19, 1987; referred to Committee on Labor and Human Resources. Hearings held Mar. 19 and Apr. 1. Reported, amended (S.Rept. 100-64)June 5. Passed Senate, amended (75-14), Jan. 28, 1988. Passed House, amended (315-98), Mar. 2. Vetoed by the President (H.Doc. 100-175) Mar. 16. Motion to over- ride passed House (292-133) and Senate (73-24) Mar. 22, 1988. H.R. 387 (Oakar) Federal Equitable Pay Practices Act of 1987. Establishes the Commission on Equitable Pay Practices to determine whether the classification system and prevailing rate system are designed and administered in accordance with the gener- al policy that sex, race, and ethnicity should not be among factors considered in determining pay rates. Introduced Jan. 6, 1987; referred to Committee on Post Office and Civil Service (Subcommittee on Compensation and Employee Benefits). Passed House, amended Sept. 29. Placed on Senate calendar Oct. 4, 1988. H.R. 925 (Clay) Family and Medical Leave Act of 1987. Entitles employees to family leave in certain cases involving a birth, an adoption, or a serious health condition and to temporary medical leave in certain cases involving a serious health condition, with adequate protection of the employees' employment and benefit rights. Establishes a commission to study ways of providing salary replacement for employees who take such leave. Introduced Feb. 3, 1987; referred jointly to Commit- tees on Education and Labor and on Post Office and Civil Service. Joint hearings held Feb. 25 and Mar. 5 by Education and Labor Subcommittees oni Labor Management and on Labor Standards, and Apr. 2 by Post Office and Civil Service Subcommittees on Civil Service and on Compensation and Employee Benefits. Reported to House, amended, by Com- mittee on Post Office and Civil Service (H.Rept. 100-511, Part 1) Mar. 8 and by Committee on Education and Labor (H.Rept. 100-511, Part 2) Mar. 9, 1988. S. 552 (Evans) Federal Employee Compensation Equity Act of 1987. Es- tablishes the Commission on Compensation Equity to deter- mine whether the distinction between basic rates of pay for Federal jobs in executive agencies reflect substantial differ- ences in the duties, difficulty, responsibility, and qualification requirements of the work performed and are not based on considerations of sex, race, or national origin. Introduced Feb. 19, 1987; referred to Committee on Governmental Af- fairs. Hearings held by Subcommittee on Civil Service, Post Office, and General Services Apr. 22, 1987. Ordered report- ed favorably, with amendment in the nature of a substitute, Nov. 18, 1987. Reported to Senate with amendment (S.Rept. 100-301) Mar. 16, 1988. S. 2488 (Dodd) Parental and Medical Leave Act of 1988. A revised version of S. 249 (Dodd), grants employees parental and temporary medical leave under certain circumstances. Provides for pro- tection of employees' employment and benefit rights. Esta- blishes an advisory panel to study ways of providing salary replacement for employees who take such leave. Introduced June 8, 1988; referred to Committee on Labor and Human Resources. Ordered reported, amended, July 14, 1988. Re- ported with amendment to Senate (S.Rept. 100-447) Aug. 3, 1988. Withdrawn from further consideration after 2 weeks of floor debate and a failed attempt to invoke cloture Oct. 7, 1988. Leslie W. Gladstone CATASTROPHIC HEALTH INSURANCE ...Medicare's new catastrophic benefit... Catastrophic medical costs are broadly defined as large unpredictable health care expenses; these are usu- ally associated with a major illness or serious injury. The absence of catastrophic health insurance protec- tion for the elderly was the subject of congressional concern for several years. During the 100th Congress, a number of proposals were considered to expand pro- tection for the aged through the Medicare program. P.L. 100-360, the Medicare Catastrophic Coverage Act of 1988, was signed into law on July 1, 1988. This measure places an upper limit on beneficiary liability in connection with covered Medicare services. It also establishes a new catastrophic prescriptioni drug pro- gram. The legislation is financed through a combinia- tion of (I) an increase in the monthly Part B premium for all Part B enrollees, and (2) a new supplemental premium which is mandatory for all Part A enrollees with Federal tax liability (about 40% of the elderly). State Medicaid programs are required to phase-in cov- erage of Medicare cost-sharing charges for the elderly and disabled with incomes below the Federal poverty line. E-53 LEGISLATION P.L 100.360. H.R. 2470/S 1127 Medicare Catastrophic Coverage Act of 1988. Limits the inpatient hospital deductible to one per year; eliminates the durational limits on, and coinsurance charges for, inpatient hospital services. Limits coinsurance charges for post-hospi- tal SNF services to the first 8 days; provides that the coinsur- ance charge be set at a level equal to 20% of the estimated national average cost; and provides for 150 days of post- hospital SNF benefits per year. Expands home health and hospice coverage. Establishes an annual out-of-pocket limit on beneficiary's payments for Part B deductibles and coin- surance. Establishes a catastrophic prescription drug benefit. Finances coverage through (a) an increase in the Part B premium, and (b) an income-related supplemental premium for persons with income tax liability over $150. Clean bill introduced May 19, 1987; referred to Committees on Ways and Means, and on Energy and Commerce. (Reflects Com- mittee on Ways and Means' markup of H.R. 1270 and H.R. 1271). Reported by Committee on Ways and Means May 22. Amended by Committee on Energy and Commerce June 17. Committee on Ways and Means approved free-standing drug amendment June 24. Clean bill (H.R. 2941) introduced July 15. Text of H.R. 2941 substituted for text of H.R. 2470; passed House as H.R. 2470 July 22. S. 1127 introduced May 5, 1987; reported by Committee on Finance, amended (S.Rept. 100-126) July 27. Passed Senate, amended, Oct. 27; incorporated into H.R. 2470 as an amendment. H.R. 2470 reported by conferees (H.Rept. 100-661) May 31, 1988. Con- ference report passed House June 2 and Senate June 8. Signed into law July 1, 1988. Jennifer O'Sullivan HEALTH INSURANCE ...percentage of uninsured is climbing... Most Americans have health insurance coverage through private group plans offered through their place of employment or through the two major gov- ernment financed programs, Medicare and Medicaid. A much smaller number of Americans purchase in- dividual policies through the private health insurance market. There are, however, an estimated 37 million Americans under the age of 65 who lack any health insurance coverage. The share of the nonaged popula- tion lacking health insurance has grown from 14.6% in 1979 to 17.5% in 1986. The most significant change appears to have been in dependent coverage. Fewer people are obtaining insurance through another family member's employment. The growth in the uninsured population has oc- curred at a time when changes in hospital reimburse- ment have made it more difficult for hospitals to shift the costs of treating the uninsured to privately insured patients. Consequently, access to health care for per- sons lacking insurance is a growing concern. These developments have led to new congressional interest in the problems of the medically uninsured. Faced with substantial Federal budget deficits and diminished in- terest in government-financed solutions, Congress has turned to employers as a potential source of expanding access to health insurance coverage. In past years, Congress has mandated that employ- ers who offer health insurance have to conform to specific requirements affecting the nature of their health insurance plans and the entitlement to those plans. In the 100th Congress, legislation was intro- duced to mandate that all employers offer their em- ployees basic health insurance. Bills were also introduced to require that employers provide specific health insurance coverage, such as coverage for the costs of catastrophic illnesses. (See CRS, Mandated employer provided health insurance [by] Beth C. Fuchs, Issue Brief 87168, updated regularly; and CRS, Private Health Insurance continuation coverage [by] Beth C. Fuchs. Issue Brief 87182, updated regularly.) These proposals are likely to be revisited in the 101st Congress, as are other options for extending health insurance to the uninsured. As a result of growing concerns about the financial condition of employer provided post-retirement health benefits, Congress also passed legislation (P.L. 100- 334) to provide that retirees of certain companies that have filed for bankruptcy continue to receive health benefits while the issues related to the bankruptcy are being resolved. This measure also improves the treat- ment of retiree health benefits under Federal bankrupt- cy law by requiring that companies provide without modification any retiree benefits unless certain condi- tions are met. Congress also began to review proposals to encour- age employers to prefund retiree health benefits. In addition, the Administration submitted a proposal to Congress to permit employers to use a part of their surplus pension assets to fund health benefits for cur- rent retirees. However, a comprehensive response to the uncertainties of post retirement health benefits did not emerge, and these issues too are likely to appear on the agenda of the 101st Congress. LEGISLATION P.L 100-334, H.R. 2969 Amends Chapter 11 of Title 11 of the U.S. Code (Bank- ruptcy Code) to improve the treatment of certain retiree benefits of former employees. Introduced July 20, 1987; re- ferred to Committee on Judiciary. Hearings held by Subcom- mittee on Monopolies Sept. 10, 1987. Passed House by voice vote Oct. 13. Passed Senate, after substitution of its text for House language, Oct. 30, 1987. House passed amended ver- sion (voice vote) May 23, 1988; Senate passed (voice vote), as amended by House, May 25, 1988. Signed into law June 16, 1988. P.L. 100-647, H.R. 4333/S. 2233 Technical and Miscellaneous Revenue Act of 1988. In- cludes modifications to Section 89 of the Internal Revenue Code relating to non-discrimination requirements for em- ployer health plans. Also includes technical corrections to the Title X provisions of COBRA. H.R. 4333 introduced Mar. 31, 1988; referred to Committee on Ways and Means. Amended bill reported to the House July 26, 1988 (H.Rept. 100-795). S. 2238 introduced Mar. 31, 1988; referred to Comi mittee on Finance. Ordered to be reported by Senate Finance on July 26, 1988. Conference agreement (H.Rept. 100-1104) approved by the House on Oct. 21, and by the Senate, Oct. 22, 1988. Beth C. Fuchs E-54 LONG-TERM CARE FOR THE ELDERLY ...Congress considers financing and delivery reform... Congress has considered issues related to the fi- nancing and delivery of long-term care services for many years. However, recent congressional action on catastrophic health insurance for the elderly has focused increased attention on the uncovered liability most elderly persons have for institutional and home and community-based long-term care services. More- over, the projected growth of the elderly population, combined with large and increasing public and private out-of-pocket expenses for long-term care services, especially for institutional care, has generated interest in altering the way such services are financed and delivered. In the future, the Nation will have significantly more elderly persons, both in terms of absolute num- bers and as a proportion of the total population. In addition, persons aged 85 and over, who are at the greatest risk of needing long-term care, are one of the fastest growing age groups in the country. These demographic factors are expected to increase the need, demand, and costs for both institutional and communi- ty-based long-term care services. The Medicaid program for the poor covers princi- pally nursing home care and offers limited support for non-medical home and community-based services. Medicare, because it is primarily oriented toward providing acute care, covers only limited long-term care services. Social service programs, like the Older Americans Act and the Social Services Block Grant, support a wide range of home and community-based services, but their resources are small when compared to other programs. In 1986, total national nursing home expenditures of $38 billion were financed about equally by public programs, primarily through the Medicaid program, and private sources. There are currently about 1.3 mil- lion elderly persons residing in nursing homes. Nearly all of private spending for nursing home care was paid directly by the consumer out-of-pocket. With the cost of nursing home care averaging between $22,000 to $25,000 per year, paying for nursing home care can represent a catastrophic expense for most elderly per- sons. Private long-term care insurance coverage for non-medical home and community-based services is limited, as is public support for such services. There- fore, elderly who need such care, and who are not cared for by family and friends, pay for these expenses out-of-pocket or do not receive care. However, home and commuity-based care is the preferred option for most elderly persons in need of long-term care ser- vices. In the past, Congress has addressed long-term care financing and delivery issues by enacting incremental changes to existing public sector programs, primarily by approving limited expansion of home and com- munity-based services under the Medicaid program. However, during the 100th Congress there was in- creased interest in larger scale reform of the long-term care system, including consideration of various options to expand Medicare coverage as well as proposals to encourage private financing of long-term care chiefly through development of private long-term care insur- ance. The wide range of proposals introduced reflects the divergence of views as to what the public and private sector responsibiliities for financing lonig-term care should be. Some policymakers believe that the Federal Government should assume the major role in financing additional long-term care services. Others believe that the costs of any public sector expansion may be prohibitive and that the private sector, through insurance and other risk-pooling mechanisms, should take the lead. Others believe that both public and pri- vate sector strategies are necessary. A number of bills introduced propose to provide long-term care services to all who need care, regard- less of financial circumstances. Under such proposals benefits would be primarily publicly financed, without deductibles or significant copayments for beneficiaries. S. 2681, introduced by Senator Kennedy, for example, would establish in a new title of the Public Health Service Act, a program covering nursing home and home care for certain chronically disabled persons of all ages. Both H.R. 3436, introduced by Representative Pepper, and S. 2671, introduced by Senator Melcher, take a similar approach to public sector financing, but would focus coverage only on home and community- based services. At the other end of the spectrum are bills that would define a larger role for private insurance in financing long-term care by encouraging the growth of this market through various tax incentives, such as incentives for employers to offer long-term care insur- ance as an employee benefit and individuals to pur- chase such insurance (e.g., 2970, H.R. 3501, H. R. 3754, S. 2212). 0 In between are bills that propose comprehensive benefits under the Medicare program, but would estab- lish certain beneficiary cost-sharing responsibilities that could be financed through the purchase of private long-term care insurance. S. 2305, introduced by Sena- tor Mitchell, H.R. 5320, introduced by Representative Waxman, and H.R. 5393, introduced by Representa- tive Stark, would each establish in Medicare nursing home and home care benefits that would be accom- panied by certain copayments and deductibles. S. 2305, by proposing larger benefiticary cost-sharing require- ments than is the case in H.R. 5320 and H.R. 5393, would create comparatively a larger role for private insurance coverage of long-term care. In addition to consideration of these proposed changes, the 100th Congress enacted incremental changes to certain programs. Although the Medicare Catastrophic Coverage Act does not comprehensively address long-term care reform, it contains a number of long-term care provisions including a limited respite care benefit for certain chronically dependent benefici- aries, and liberalization of certain income and asset restrictions for spouses of Medicaid recipients residing in nursing homes. In addition, Congress enacted an amendment to the Older Americans Act authorizing an expanded program of non- medical in-home ser- vices for the frail elderly. E-55 LEGISLATION P.L 100-175, H.R. 1451 Older Americans Act Amendments of 1987. Reauthorizes the Older Americans Act for 4 years, through 1991. Among other things, establishes under the Title III State and area agency on aging program, a new authority for in-home ser- vices for the frail elderly. Conference report passed Senate Nov. 12, 1987, and House Nov. 17. Signed into law Nov. 29, 1987. P.L 100-360, H.R. 2470 Medicare Catastrophic Coverage Act of 1988. Expands Medicare coverage of inpatient hospital care and limits beneficiary out-of-pocket expenses for hospital and physician payments. (For further description, see Catastrophic Health Insurance.) Modifies the skilled nursing facility benefit to expand coverage up to 150 days of coverage, and expands home health service coverage. Provides a limited respite benefit of up to 80 hours a year for certain beneficiaries dependent upon a voluntary caregiver. Allows spouses of Medicaid nursing home recipients to retain higher levels of income and assets for their living expenses. Conference re- port passed House June 2 and Senate June 8. Signed into law July 1, 1988. H.R. 3436 (Pepper) Medicare Long-Term Home Care Catastrophic Protection Act of 1987. Amends Medicare to provide coverage of long- term home care services to chronically ill elderly, disabled, and children who are functionally dependent in at least two activities of daily living. Authorizes home care management agencies to provide case management services to beneficiar- ies. Payments for services would be limited to a fixed per- centage of institutional care costs. Establishes as the financing source for this new benefit, revenues accruing from the elimination of the cap on income subject to the Medicare payroll tax. House defeated a rule to consider H.R. 3436 on the floor June 8, 1988. Richard J. Price and Carol O'Shaughnessy PRIVATE PENSION PLANS ...two trends cause concern... Two trends caused concern among policymakers during the 100th Congress. First, a significant number of firms ended overfunded pension plans to recapture "excess" assets. In the past 8 years, companies ended over 1,500 plans and recaptured $18 billion in pension assets. The underlying issues raised are as follows: Who owns pension fund assets? Should an employer have the right to any excess assets? Should the employ- er be able to obtain the use of the excess assets without terminating the plan? Should they be shared with re- tirees? Second, the termination of seriously underfund- ed plans in the steel industry substantially increased the Pension Benefit Guaranty Corporation's (PBGC) defi- cit. In its first session, the 100th Congress changed pen- sion law in response to some of these concerns. The Omnibus Budget Reconciliation Act of 1987 (OBRA) signed into law by President Reagan on Dec. 22, 1987 (P.L. 100-203) substantially increases the insurance premiums charged by the PBGC and imposes tighter funding requirements on underfunded single- eniploy- er pension plans. Plan sponsors must provide security (such as in the form of a bond) when a plan amendment increases current liabilities. The sponsor must pay an annual $16 premium for each participant covered by the plan, plus an additional variable rate if the plan is underfunded. The total annual pension insurance premium may not exceed $50. Further, P.L. 100-203 provides that employers still will have access to excess pension funds after a plan is ended in accordance with current Administration guidelines. However, the new law prohibits a reversion of pension assets unless the plan has permitted this for at least 5 years. The budget law also tightens up on the granting of funding waiv- ers, accelerates pension contributions, and increases the liability of plan sponsors to pay all benefits due plan participants, even those exceeding the level guaran- teed by the PBGC. Pension asset reversions still remain a controversy. Legislation had been reported by the Senate Commit- tee on Appropriations to place a moratorium on this practice while Congress considered a permanent legis- lative solution. Rather than placing a moratorium on pension asset reversions, on July 26, 1988, the Senate adopted a sense-of-the-Senate resolution calling for Congress to enact a 60% excise tax on asset reversions that would extend until May 1, 1989. During this peri- od the legislative committees in both Houses would be directed to draft legislation addressing the policy ques- tions raised by employer terminations of overfunded pension plans and asset reversions. The Senate Finance Committee included a 60% excise tax on pension asset reversions in the Committee's amendment to S.2238 (Technical Corrections Act of 1988, as reported). However, the Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647), increased the excise from 10% to 15%, for reversions occurring after Oct. 21, 1988. LEGISLATION P.L. 100-647 Technical and Miscellaneous Revenue Act of 1988. In- creases the excise tax on pension asset reversions from 10% to 15%. This applies to reversions occurring after Oct. 21, 1988, unless a notice of intent to terminate is tiled before that date. Ray Schmitt E-56 RAILROAD RETIREMENT AND UNEMPLOYMENT: RECENT ISSUES ...Federal role continues to attract attention... Federal administration of the retirement, disability, sickness, and unemployment benefits for railroad in- dustry employees continues to attract attention from the Executive Branch. Administration documents sug- gest that the Federal role is either too large or al- together inappropriate, given the similarity of railroad workers to private industry employees. The Adminis- tration argues that the general taxpayer now subsidizes the railroad industry, both directly through appropria- tions, and indirectly (by relieving the industry of re- sponsibility for its benefit programs). Critics of the current arrangement further suggest that this subsidy will inevitably rise as the industry declines in competi- tiveness. They point to declining numbers of railroad workers and increased payroll taxes, and conclude that the ratio of beneficiaries to workers is a burden that the industry cannot sustain. These arguments (and proposals to curtail Federal involvement in rail benefit programs) have persisted in spite of Congress' apparent willingness to address fi- nancial threats to the programs without altering Feder- al responsibility for them. Such willingness is, to some extent, the acceptance of an historical need; Congress stepped into this legislative area in response to prob- lems that have not gone away. It is easy to overstate the Federal role and conclude that Congress determines rail workers' benefits, assigns payroll taxes to finance them, and appropriates monies from the General Fund to make up the differences. In fact, Congress follows two basic principles in this area: First, the relationship between benefits earned and revenues raised (along with other compensation not subject to congressional review) is decided through collective bargaining in the industry. Congress then oversees the benefits-and-taxes agreement and deter- mines its adequacy and fairness to the industry, to pre- sent and former employees, and to the general taxpayer. If Congress is not satisfied, it may require changes in the agreement, but it has never sought to supplant the basic agreement. Second, when Congress has acted on its own initiative, it has done so in order to achieve consistency in the treatment of these work- ers under Federal law, relative to similarly situated private sector workers. Federal administration of the rail benefit programs does constitute a subsidy to the rail industry and its workers. A Federal subsidy to a particular industry, however, is not unique. It is uncertain whether the industry will be able to meet its future obligations for deferred compensation. The long-term decline in employment does not neces- sarily mean that the payroll tax burden will become excessive. Employment has declined for many reasons, including an ongoing industry effort to achieve em- ployment consistent with technology. As productivity increases, more revenue is available to reward workers as well as to enhance profits. The complexity of the questions involved suggests that the issue will remain controversial. tW -m P.L 100-647, H.R. 2167 Railroad Unemployment Insurance and Retirement Im- provement Act. Increases unemployment benefits and re- structures financing mechanisms (see detail above). Also repeals the "last person service rule" -- the requirement that annuitants relinquish the right to return to the service of their last employer in order to qualify for annuity benefits. Intro- duced Apr. 23, 1987; referred to Committees on Energy and Commerce, and on Ways and Means. Reported May 21, 1987, by Energy and Commerce Committee (H.Rept. 100- 102, Part 1). House Subcommittee on Public Assistance and Unemployment marked up and reported favorably Oct. 6, 1987. Full Committee on Ways and Means marked up and reported, with no major changes, Oct. 19, 1987 (H.Rept. 100-102). Passed House Nov. 9, 1987; referred to Senate Committee on Finance, attached to S. 2238 (Tax Technical Corrections Act) and reported Aug. 3, 1988, passed Oct. 21, 1988 as H.R. 4333. Dennis Snook IMMIGRA flON ...legal immigration legislation and oversight of P.L. 99-603... Oversight of the implementation of P.L. 99-603, the Immigration Reform and Control Act (IRCA) of 1986, was a significant immigration issue during the 100th Congress. P.L. 99-603 consists primarily of amend- ments to the Immigration and Nationality Act (INA), the basic immigration law. Major provisions of the 1986 Act address the control of illegal immigration by employer sanctions for the employment of unauthor- ized aliens, legalization of some undocumented aliens, and the legal admission of alien agricultural workers. The legalization program application period ended on May 4, 1988, and enforcement of employer sanctions went into full effect on June 1, 1988. The House and Senate Judiciary Committees as well as several other interested committees held oversight hearings. The first and probably the most significant legislation amending the new law was a provision of P.L. 100-202, the FY88 Continuing Appropriations resolution, in- tended to expedite the processing and admission of special agricultural workers (SAWs). The major legislative issue in the area of immigra- tion was the revision of the law regulating legal immi- gration. S. 2104, the Kennedy- Simpson bill revising the numerical limits and preference system regulating legal immigration, passed the Senate on Mar. 15, 1988 by a vote of 88-4. On July 28, 1988, Representative Rodino introduced for himself and Representative Mazzoli H.R. 5115, the "Legal Immigration Amend- ments of 1988," to revise nonfamily- related legal im- migration. However, only P.L. 100-658, legislation temporarily making more visas available to countries disadvantaged by the repeal of the national origins quota system and to countries underrepresented in the immigrant visa allocation in FY88, and extending the H- I nonimmigrant status of certain registered nurses to Dec. 31, 1989, passed both bodies. The exclusion and deportation of aliens, particular- ly on political and ideological grounds, continued to receive attention. P.L. 100-204, the FY88 Foreign Re- -57 lations Authorization Act, included a temporary prohibition against the exclusion or deportation of aliens for beliefs or statements that would be constitu- tional for U.S. citizens. This prohibition was extended to 1991 by P.L. 100-461, the FY89 Foreign Assistance Appropriations Act, but only for nonimmigrants. Per- manent legislation amending the 32 grounds for exclu- sion and 19 grounds for deportation set forth in the Immigration and Nationality Act was introduced by Representative Frank, and reported by the House Judiciary Committee on Aug. 12, 1988 (H. Rept. 100- 882). In addition to provisions already noted, both P.L. 100-202, the FY88 Further Continuing Appropriations Resolution, and P.L. 100-204, the FY88 Foreign Rela- tions Authorization Act, included a number of other provisions relating to immigration (see Legislation sec- tion). Other immigration- related legislation receiving final action by the 100th Congress included P.L. 100- 525, the Immigration Technical Corrections Act of 1988, which made extensive technical amendments to legislation relating to immigration, including the INA and IRCA; and provisions of P.L. 100-690, the Anti- Drug Abuse Act of 1988, which, among other things, amended the INA to provide for expeditious deporta- tion of aliens who commit aggravated felonies. LEGISLATION P.L. 100-202, H.J.Res. 395 Further Continuing Appropriations Act, FY88. Includes FY88 appropriation of $741,114,000 for the Immigration and Naturalization Service (INS) within the Justice Department. Includes immigration provisions relating to SAW applica- tions, Amerasians, proposed INS ("H- I") regulations; as well as provisions which are identical to those in P.L. 100-204 relating to Cuban political prisoners, Indochinese refugee resettlement, and legalization of status of certain aliens previ- ously granted EVD. Signed into law Dec. 22, 1987. P.L. 100-204, H.R. 1777 Foreign Relations Authorization Act, FY88-89. Includes a temporary prohibition against the exclusion or deportation of aliens on certain political or ideological grounds; as well as provisions relating to the legalization of status of certain aliens previously granted EVD, Cuban political prisoners, Indochinese refugee resettlement, and exclusion for drug trafficking. Signed into law Dec. 22, 1987. P.L. 100-459, H.R. 4782 Department of Commerce, Justice, and State, the Judiciary and Related Agencies Appropriation Act, FY89. Includes an appropriation for INS of S800 million plus any unused user P.L. 100-461, H.R. 4637 Foreign Assistance Appropriations Act, FY89. Amends section 901 of P.L. 100-204 to extend the temporary prohibi- tion against the exclusion and deportation of aliens on certain political or ideological grounds to 1991, but only for nonim- migrants. Also includes provisions relating to the continua- tion by USIA of the i-I au pair program. Signed into law Oct. 1, 1988. P.L 100-525, S. 2479 Immigration Technical Corrections Act of 1988. Consists of miscellaneous amendments to the INA and IRCA, and other immigration- related provisions. Signed into law Oct. 24, 1988. P.L 100-658, H.R. 5115 Immigration Amendments of 1988. Extends section 314 of IRCA for FY89 and FY90, making 15,000 "NP-5" immi- grant visas available each year; makes 10,000 immigrant visas available to underrepresented countries each year for FY90 and FY91; and extends H-I nonimmigrant status for certain registered nurses through Dec. 1, 1989. Reported by the House Judiciary Committee Oct. 3, 1988 (H. Rept. 100- 1038); passed House Oct. 5, 1988; passed Senate unamended Oct. 21, 1988. Signed into law Nov. 15, 1988. P.L 100-690, H.R. 5210 Anti-Drug Abuse Act of 1988. Requires that a machine- readable document border security program be developed (sec. 4604); authorizes appropriations for specified INS per- sonnel enhancement (sec. 6151); provides for INS foreign language training (sec. 6165); includes amendments to the INA and other provisions relating to the deportation of aliens who commit aggravated felonies (secs. 7341-7350); and includes a supplemental FY89 appropriation of $26.2 million for INS (Title X). Cleared by House and Senate Oct. 21, 1988. Signed into law Nov. 18, 1988. Joyce Vialet JOB TRAINING: FOCUS ON DISLOCATED WORKERS, YOUTH, WELFARE RECIPIENTS ...employment and training initiatives... The 100th Congress enacted major legislation to address the employment and training needs of two specific groups: dislocated workers and welfare recipi- ents. The persistent employment problems of these two groups, plus disadvantaged youth, had been high- lighted in the Reagan Administration's budget propos- als to Congress for both FY88 and FY89. For dislocated workers, the Administration had proposed a new $980 million adjustment assistance program to provide a wide range of services, including job search assistance and counseling, rapid response activities immediately after a large lay-off, basic educa- tion, literacy, and job skill training. As originally proposed by the Administration, the new program would have replaced two existing programs for dis- fees from the immigration legalization program. Includes a continuation of the ban against the adoption of H-1 regula- tions proposed by INS; an amendment to the INA relating to the adoption of the illegitimate children of American fa- thers which expires Oct. 1, 1989; and amendments to the INA creating a revolving "Immigration Examinations Fee Ac- count." Signed into law Oct. 1, 1988. E-58 located workers: Title III of the Job Training Partner- ship Act (JTPA), and Trade Adjustment Assistance (TAA). Congress passed a version of the Administration's proposal, retaining the proposed funding level and ser- vice mix, but establishing the program as an expanded Title III of JTPA. Congress also did not repeal the existing TAA program, as requested by the Adminis- tration. The expanded dislocated worker program un- der Title III of JTPA, plus amendments to TAA, were incorporated into omnibus trade legislation, enacted in August 1988 (P.L. 100-418). (See MLC entry on Trade.) Appropriations for JTPA programs in FY89 had been finalized prior to enactment of the trade bill; $287 million was appropriated for the Title III dis- located worker program in FY89 under the Labor- HHS-Education Appropriations Act, P.L. 100436. Numerous welfare reform initiatives were consid- ered during the 100th Congress, including a proposal submitted by the Administration. Legislation substan- tially amending the existing Aid to Families with De- pendent Children (AFDC) program, particularly with regard to work and training requirements imposed on recipients, was enacted in October 1988 (P.L. 100-485). The new legislation requires able-bodied welfare recipients without children younger than 3 years old to participate in some form of education, work, or train- ing activity. States also may opt to require participa- tion by parents with children as young as one year old. Congress passed additional legislation related to welfare reform, which actually was an amendment to JTPA, and will provide bonuses to States to encourage them to increase their level of services under JTPA to certain groups of AFDC recipients who are likely to be long-term dependent. This legislation was enacted as a component of omnibus homeless assistance legisla- tion (P.L. 100- 628). Finally, for disadvantaged youth, the Administra- tion had proposed an expansion of the existing summer youth employment and training program, under Title II-B of JTPA, into a year-round remedial education program for teenage welfare recipients, as well as sum- mer jobs for low-income youth. A version of this proposal was passed by the Senate as part of S. 514; no action was taken in the House. LEGISLATION P.L 100-418, H.R. 4848 Omnibus trade bill. Contains amendments to Title III of JTPA expanding services to dislocated workers. H.R. 4848 introduced June 16, 1988; referred to more than one commit- tee. H.R. 4848 passed House July 13, 1988, passed Senate Aug. 3, 1988. Signed into law Aug. 23, 1988. S. 514 (Kennedy) Jobs for Employable Dependent Individuals Act. Author- ses bonuses, under new Title V of JTPA, for States which ,lace welfare recipients in long-term employment. Amends TPA performance standards for adults, and amends JTPA ummer program for youth. Introduced Feb. 5, 1987; report- .d by Committee on Labor and Human Resources (S.Rept. uoo-20) Mar. 20, 1987. Passed Senate Apr. 2, 1987. Bonus portion only, incorportated into McKinney Homeless Assist- ance Act reauthorization, which was enacted on Nov. 7, 1988 as P.L. 100-628. Karen Spar EDUCATION PROPOSALS IN TRADE COMPETITIVENESS LEGISLATION ...education to improve the Nation's productivity... Improvement of America's competitive position in international trade was one of the major issues pursued by the 100th Congress. Most legislative proposals in- cluded provisions for increasing the funding levels for Federal education programs, expanding current pro- grams, or authorizing new programs. The primary goal was to improve the productivity of the Nation's workers by raising the skill level of the workforce. Discussions about education's role in addressing the competitiveness issue included the contribution of edu- cation to productivity growth, comparisons of the edu- cational achievement of American school children with that of their peers in other nations, the education- al needs of illiterate adults, and the role of technology in education. Several issues connect education with proposals for trade competitiveness. One is the extent to which increased education can improve trade competition. Another is the concern that some of the United States' major trade competitors or trade partners are more successful than the United States in some aspects of education. In response to these concerns, efforts have been made to identify the types of additional educa- tional programs and expenditures that might most ef- fectively improve the Nation's trade position. For example, what kinds of programs should be provided; for whom should they be provided; what level of fund- ing should be provided? Other issues include the extent to which Federal programs should address national priorities or allow State and local discretion, the im- plications of cost-sharing requirements on institutions with limited resources, and the implications of provid- ing funds to established research universities, develop- ing institutions, or all institutions. The Omnibus Trade and Competitiveness Act of 1988, P.L. 100-418, includes a variety of Federal edu- cation measures -- improvement of instruction in math- ematics and science education; literacy training for adults; foreign language assistance programs; dropout assistance programs; secondary school basic skills im- provement; the Star Schools program of telecommuni- cations partnerships for improving mathematics and science instruction; vocational training programs for adults; development of partnerships between educa- tional institutions and private businesses; minority science and engineering programs; regional technolo- gy transfer programs; and modernization of academic research facilities and college science instrumentation program. P.L. 100-418 was enacted August 23, 1988. Identical education provisions were included in an ear- lier version of the trade bill, H.R. 3, which was vetoed by the President May 24, 1988. Several related educa- tion provisions were enacted through the Augustus F. Hawkins-Robert T. Stafford Elementary and Second- ary School Improvement Amendments of 1988, P.L. 100-297, Apr. 28, 1988. E-59 LEGISLATION P.L. 100-418, H.R. 4848 Omnibus Trade and Competitiveness Act of 1988. Title VI, the Education and Training for a Competitive America Act of 1988, subtitles A, B, and C, authorizes $670 million to be appropriated in FY88 for programs administered by the U.S. Department of Education. Subtitle A (Elementary and Secondary Education) of Title VI authorizes for FY88: $175 million for mathematics and science education programs under Title II of the Education for Economic Security Act (EESA); $30 million for work- place literacy partnerships grants; $25 million for English literacy grants; the establishment of a Federal literacy coor- dination office (with no additional funds); $20 million for the Foreign Language Assistance Act of 1988; $1 million for Presidential Awards for Teaching Excellence in Foreign Languages; $20 million for elementary and secondary educa- tion partnerships in mathematics and science under Title III of EESA; $10 million for the Education Partnerships Act of 1988; $20 million for the Star Schools Program Assistance Act; $50 million for the School Dropout Demonstration As- sistance Act of 1988; and $200 million for the Secondary Schools Basic Skills Demonstration Assistance Act of 1988. Subtitle B (Technology and Training) authorizes for FY88: the Training Technology Transfer Act of 1988 (with no additional funds); $2 million for instructional programs in technology education; a requirement that the National Diffu- sion Network gather and disseminate information for the replication of technical education programs (with no addi- tional funds); $25 million for the basic program and $25 million for the special program for adult training, retraining, and employment development under the Carl D. Perkins Vocational Education Act (Perkins Act); an additional $10 million for industry-education partnerships under the Per- kins Act; $2 million for a technological literacy demonstra- tion program; and $5 million for regional access demonstration programs for rural educational opportunities. Subtitle C (Higher Education) authorizes for FY88: $10 million for a student literacy corps under Title I of the High- er Educatioit Act (HEA); $10 milliott for a college and uni- versity research facilities and instrunientation modernizatioit program unider HEA Title VII; an additional $7.5 milliott for tittority science and engineering improvement utider HEA Title X; $15 nuilliosi for the operation of regional technology transfer ceiters under HEA Title XII; att additional $2.5 million for library technological enhancement under HEA Title II; $5 million for centers for international busittess edu- cationi under HEA Title VI; "such sums as may be neces- sary" for initernational business education and training programs; and a technical amendment to the authorization of the Robert E. McNair Post- Baccalaureate Achievement Program under HEA Title IV (no added funds). The bill was introduced June 16, 1988; referred to more than one committee. Passed House July 13; passed Senate Aug. 3; and signed Aug. 23, 1988. Paul M. Irwin E-60 F. THE COURTS SIGNIFICANT RECENT SUPREME COURT LABOR AND EMPLOYMENT RULINGS Gordon E. Krischer and Amy L. Dixon O'Melveny and Myers LABOR MANAGENMNT RELATIONS ACT Lingle V. Norge Div. of Magic Chef. Inc., 108 S.Ct. 1877 (1988): The Court decided unanimously that an Illinois tort action based on a retaliatory discharge for exercising state worker's compensation rights is not pre- empted by Section 301 of the Labor Management Relations Act. Therefore, an employee's case which relies on a statute or legal theory not dependent on a collective-bargaining agreement may not be removed to federal court on grounds of federal question jurisdiction and may not be dismissed based on federal labor law preemption. The Court stated that such a case involves purely factual questions about the employ- ee's conduct and the employer's motivation; it does not require interpretation of a collective-bargaining agreement. In an opinion by Justice Stevens, the Court reasoned that this result is not inconsistent with the policy of fostering uniform, certain adjudication of disputes over the meaning of collective-bargaining agree- ments. He added that the Court's rule is consistent with cases finding that there are separate areas of substantive rights which are not pre-empted by federal labor law stat- ues. NATIONAL LABOR RELATIONS ACT Edward J. DeBartolo Corp. v. Florida Gulf Coast Bldg. and Constr. Trades Council, 108 S.Ct. 1392 (1988): The Court held that the National Labor Relations Act permits a labor union to distribute handbills urging shopping mall customers not to patronize mall tenants because of a labor dispute between the union and a construction company hired to build a store at the mall. The Court concluded that the union's actions did not constitute an unlawful secondary boycott prohibited by Section 8(b)(4)(ii)(B) of the NLRA. In an opinion written by Justice White and joined by five other justices, the Court affirmed the Eleventh Circuit's decision which found no congressional intent to prohibit the handbilling and said that the publicity proviso of Section 8(b)(4) did not indicate congressional intent to ban all speech not coming within its terms. The Court found that Section 8(b)(4) did not contain any clear expression of congressional intent to proscribe peaceful handbilling, unaccompanied by picketing, urging a consumer boycott of a neutral employer. F-1 The Court stated that the NLRB's interpretation of the statute, that the NLRA prohibited the union's handbilling, raised serious First Amendment problems. Construing Section 8(b)(4) as not reaching the union's handbilling, however, made it unnecessary to rule upon the First Amendment questions. Two justices concurred in the judgment without further elaboration. There were no dissents. Comunications Workers of America v. Beck, 108 S.Ct. 2641 (1988): The Court ruled that under the NLRA, unions may not spend union dues collected from nonunion employees in an agency shop arrangement to further activities that are unrelated to collective bargaining, contract administration, or grievance adjustment. The opinion by Justice Brennan, writing for five members of the Court, stated that federal courts had juris- diction over the case and therefore the non-members were not limited to proceedings before the NLRB. In reaching the decision, he looked to the Railway Labor Act, which does not permit a union, over the objection of non-members, to spend mandatory agency fees for political causes. Justice Blackmun, joined by two justices, dis- sented in part. He argued that Congress, when enacting Section 8(a)(3), did not intend to limit the operation of union security agreements to the extent found by the majority. NLRB v. United Food and Commercial Workers Union, 108 S.Ct. 413 (1987): In a unanimous opinion, the Court concluded that an informal settlement of unfair labor practice charges by the General Counsel of the NLRB, after a complaint is filed but before a hearing is held, is not subject to judicial review. Because the settlement is not an adjudicatory action of the NLRB, the Court said, the NLRA's judicial review provisions do not apply. The Court also found that Congress did not intend to permit judicial review of such actions under the Administrative Procedure Act. In an opinion written by Justice Brennan, the Court said that Congress, when enacting the NLRA, intended to differentiate between the General Counsel's "prosecuto- rial" functions and the NLRB's "adjudicatory" functions. Adjudicatory functions are subject to judicial review, but prosecutorial activities are not, said Brennan. He stated that the general counsel acts "on behalf of" the NLRB, but her actions are not those "of the Board" itself, and the NLRA permits judicial review only of actions of the NLRB. F-2 Brennan also noted that review under the APA is not avail- able when "statutes preclude judicial review." Because of the difference between adjudicatory and prosecutorial functions, he explained, the NLRA must be read to preclude judicial review under the APA. Four justices concurred in the opinion. RAILWAY LABOR ACT Landers v. National Railroad Passengers Corn., 108 S.Ct. 1440 (1988): In a unanimous opinion by Justice White, the Court held that Section 2, Eleventh of the Railway Labor Act, which authorizes railroads and unions to enter union shop agreements but also permits certain employees to satisfy the requirement by joining another union, does not entitle railroad employees to be represented at company-level grievance or disciplinary proceedings by a union other than the designated collective bargaining agent. The RLA does not specifically address what role, if any, minority unions play at such hearings, but the Court was unwilling to read into the statute any provision which was not specifically included by Congress. White discussed that the purpose of the RLA, to provide an orderly settlement of certain types of labor disputes, could be frustrated by permitting employees to demand the representative of their choice. Also, the minority union might use grievance and disciplinary pro- ceedings to undermine the position of the majority bargain- ing representative. The Court appropriately could assume that any majority union would adequately represent all employees' interests at the company-level hearings, stated White. He also noted that if disciplinary proceedings are pursued past the company-level to the National Railroad Adjustment Board, an employee could be represented there by the union of his choice. FEDERAL EMPLOYERS' LIABILITY ACT Xonessen Southwestern Railway Co. v. Morgan, 108 S.Ct. 1837 (1988): The Court decided that, as a matter of federal law, state courts may not award prejudgment interest in Federal Employers' Liability Act cases pursuant to local practice, and that FELA damages awards should be reduced to their present value. All members of the Court agreed with the portion of the opinion by Justice White that state courts must apply federal substantive law when adjudicating FELA claims. The proper measure of damages under the FELA, including whether F-3 prejudgment interest may be awarded to a prevailing plain- tiff, is inseparably connected with the right of action, and therefore is an issue of substance that must be settled according to federal rather than state law, said the Court. FAIR LABOR STANDARD8 ACT XcLaughlin v. Richland Shoe Co., 108 S. Ct. 1677 (1988): In a 6-3 decision written by Justice Stevens, the Court decided that the same definition of "willful" in the Age Discrimination in Employment Act applies to "willful" in the Fair Labor Standards Act. To act "willfully" under these statutes, an employer must have known or shown reck- less disregard for whether its conduct was prohibited by the Act. This issue is important in FLSA litigation because the statute provides a three-year statute of limitations for the civil enforcement of "willful" violations, but only a two-year limitations period for non-willful violations. Justice Marshall, joined by two other justices, dissented. He said that the Court failed to recognize the differences between the ADEA and the FLSA and suggested that an intermediate approach should have been adopted. F-4 CIVIL BERVICE REFORM ACT Federal Labor Relations Authority v. Aberdeen Proving Ground, 108 S. Ct. 1261 (1988): In a per curium opinion, the Court decided that 5 USC 7117(b), not an unfair labor practice proceeding, is the correct procedure for determining whether a "compelling need" exists for a federal agency's regulation. Without a compelling need, the regulation is subject to the employing agency's duty to negotiate with its employees' labor organization. The Court noted that the Federal Service Labor- Management Relations Statute, Title VII of the Civil Service Reform Act of 1978, exempts certain matters from federal agencies' duty to negotiate. The plain language of the statute provides that where a matter is covered by regulation, no duty to negotiate arises unless the FLRA has first determined that no "compelling need" justifies adher- ence to the regulation. The Court said that this reading of the statute is consistent with the legislative history and statutory purpose. MERIT SYSTEMS PROTECTION BOARD Department of Navy v. Egan, 108 S.Ct. 818 (1988): In a 5-3 opinion by Justice Blacknun, the Court held that when the Merit Systems Protection Board reviews adverse employment actions taken by federal agencies pursuant to 5 USC 7513, it does not have authority to review the substance of an underlying security-clearance determination. Blackmun noted the great deference that courts owe to executive branch decisions affecting military and na- tional security affairs, then observed that the 1978 Civil Service Reform Act does not confer broad authority on the MSPB to review a security clearance determination. Under the statute, the MSPB can review only whether just cause for termination exists, whether a security clearance has been denied, and whether a transfer to a nonsensitive position is feasible. Because it does so under a preponderance of the evidence standard, if it reviewed the merits of the security clearance determination underlying an employee's removal, it inevitably would be required to second-guess national security decisions. Justice White, joined by two others, dissented, stating that neither the CSRA's language nor legislative history prohibits the MSPB from examining discharges of employees who are alleged to be security risks. F-5 NATIONAL SECURITY ACT Webster v. Doe, 108 S.Ct. 2047 (1988): The Court held that Section 102(c) of the National Security Act does not preclude judicial review of a former CIA employee's claim that firing him on the basis of his homosexuality violated his constitutional rights. Chief Justice Rehnquist, writing for six members of the Court, noted that, because of the discretion that Section 102(c) grants the CIA director, termination deci- sions are "committed to agency discretion by law" within the meaning of the Administrative Procedure Act. Thus they are not judicially reviewable under that statute. He found additional support for this conclusion in the overall structure of the NSA. Constitutional claims, however, required a dif- ferent analysis. Rehnquist declared that Section 102(c) cannot be read to exclude judicial review of constitutional claims. He emphasized that where Congress intends to preclude judicial review of constitutional claims, its intent to do so must be clear. Rehnquist rejected the CIA's argument that judi- cial review of even constitutional claims will entail extensive "rummaging around" in CIA affairs to the detriment of national security. He noted that claims based on Title VII are routinely entertained in federal court. Moreover, district courts can control the discovery process to protect the government's interests in confidentiality and its methods, sources and missions. Two justices dissented from the Court's conclusion that constitutional claims are reviewable. EMPLOYEE RETIREMENT INCOME SECURITY ACT Mackey v. Lanier Collections Agency & Service, Inc., 108 S.Ct. 2182 (1988): The Court decided that a Georgia statute that expressly prohibits garnishment of employee welfare benefit plan funds is preempted by the Employee Retirement Income Security Act, but that Congress did not intend to pre-empt the use of Georgia's more general garnishment statue, even when applied to ERISA welfare benefit plans. In a 5-4 decision by Justice White, the Court noted that one Georgia statute specifically bars the gar- nishment of funds or benefits of an employee benefit plan or program subject to ERISA. The possibility that the state statute was enacted to further the goals of ERISA did not F-6 save it from preemption, stated White. Supreme Court precedent requires that a statute that singles out ERISA employee welfare benefit plans for different treatment under state garnishment procedures is pre-empted. The remaining question, whether the entire Georgia garnishment scheme was preempted, was "a close one", said White, because ERISA does not expressly address whether ERISA trustees must comply with state garnishment laws and therefore Congress could not have intended to forbid the use against ERISA plans of state law methods of enforcing judgments. White observed that when Congress intended in ERISA to preclude a particular state law method of enforcing judgments, it did so expressly. Therefore, the Court held that the Georgia garnishment scheme was not pre-empted. It is clear, White said, that many judgments against ERISA welfare benefit plans, based on federal or state law, won in federal or state court, must be collectible in some way. Garnishment is one permissible method. Justice Kennedy, joined by three other justices, dissented. He said the compliance with state garnishment procedures subjects ERISA plans to significant administra- tive burdens and costs and that it is difficult to believe that Congress intended this result. Laborers Health and welfare Trust Fund v. Advanced Lightweight Concrete Co., Inc., 108 S.Ct. 830 (1988): In a unanimous opinion written by Justice Stevens, the Court decided that federal courts cannot entertain suits under Section 502 of ERISA to determine whether an employer's unilateral decision to refuse to make contributions to a multiemployer pension plan, following its withdrawal from the plan, violates the National Labor Relations Act. Instead, the Court said, courts are limited by Section 502 to collecting contractually promised contributions. The complaints in this case alleged federal jurisdiction under Sections 502(g)(2) and 515 of ERISA. Justice Stevens held that Section 515 has no applicability to an employer's NLRA duty to bargain in good faith. The liability created by Section 515 may be enforced by the trustees by bringing an action in federal court pursuant to Section 502. Both the text and legislature history of these two sections indicate that this remedy is limited to the collection of promised contributions and does not confer jurisdiction on district courts to determine whether an employer's unilateral decision to refuse to make post-con- tract contributions constitutes a violation of the NLRA, said Stevens. F-7 TITLE VII OF THE 1964 CIVIL RIGHTS ACT Loeffler V. Frank, 108 S.Ct. 1965 (1988): The Court interpreted a provision of the 1970 Postal Reorganization Act to permit the payment of prejudgment interest in employment discrimination lawsuits against the U.S. Postal Service. The Court said that in enacting the statute's sue-and-be-sued clause, Congress intended to waive the federal government's immunity from prejudgment interest in lawsuits brought under Title VII of the 1964 Civil Rights Act. Florida v. Long, 108 S.Ct. 2354 (1988): In an opinion by Justice Kennedy, the Court said that employees who retired before the effective date of a previous decision (Norris), under sex-based pension plans declared unlawful by that decision, are not entitled to an upward adjustment of the future benefit payments they are entitled to receive, because the pension fund administrators were not on notice. The Court followed its general practice of not requiring that pension plan decisions be applied retroac- tively. Kennedy noted that the distinction between retro- active and prospective relief is not clear in pension plan cases. He stated that a holding that each monthly pension payment constitutes a continuing violation would render employers liable for past conduct, regardless of whether a decision actually is applied retroactively. For this reason, the Court concluded that no adjustment in benefit payments is required for employees who retired before the 1983 Norris case that ruled pension benefits must be calcu- lated on a nondiscriminatory basis. Justice Blacknun, joined by two other justices, dissented. He said that Title VII's make-whole purpose creates a presumption in favor of retroactivity that seldom can be overcome. Justice Stevens agreed, and said he would go further and hold that each month's disparate retirement check constitutes a separate violation that may be remedied. Watson v. Ft. Worth Bank and Trust, 108 S.Ct. 2777 (1988): The Court split sharply in this case over the use of disparate impact analysis in judging subjective or discretionary employment decisions. All eight justices who participated in the decision agreed that disparate impact analysis, which does not require proof that an employer intended to discriminate in a manner violative of Title VII, may be applied to subjective employment decisions. The Court was unable to agree, however, on what evidentiary standards should be applied to such cases. F-8 Justice O'Connor wrote the Court's lead opinion. She stated that the Court's precedents in the employment discrimination area would be nullified if disparate impact analysis could be applied only to standardized selection practices. If an employer's informal system of subjective decision-making has the same effect as a system using imper- missible intentional discrimination, she said, it is diffi- cult to see why the disparate impact analysis should not apply. In a portion of her opinion joined by Rehnquist, White and Scalia, O'Connor cautioned that extending disparate impact analysis to subjective employment practices may lead to perverse results. Therefore, she said, the plaintiff's burden of establishing a prima facie case requires more than just showing that there are statistical disparities in the employer's workforce. The plaintiff must offer statistical evidence sufficient enough to show that the challenged employment practice caused the exclusion of applicants because of their membership in a protected group. Employers need not introduce formal validation studies showing that particular criteria predict actual on-the-job performance in an attempt to rebut plaintiff's showing, said O'Connor. She also noted that employers may find it easier in cases challenging subjective decisions than in cases questioning the use of standardized tests to produce evidence showing a manifest relationship between the employment decision and the employment in question. Justice Blackmun, joined by Brennan and Marshall, concurred in part and concurred in the judgment. He said that the plurality's suggestions for applying disparate impact analysis to subjective employment standards were inconsistent with proper evidentiary standards and with Title VII's central purpose. He stated that although job-relatedness cannot always be established with mathematical certainty, employers are not freed from any burden of proof. Rather, trial courts must look to differ- ent forms of evidence when assessing businesses necessity claims. Justice Stevens concurred in the judgment, but stated that the Court unwisely announced a new interpreta- tion of earlier cases that applied disparate impact analysis to objective employment criteria. He said he would not have discussed the evidentiary standards set forth in the Court's prior cases until after the district court in this case had made appropriate findings concerning this plaintiff's prima facie evidence of disparate impact and the employer's explanation for its practice of giving supervisors discre- tion in making certain promotions. F-9 EBOC v. Commercial Offic. Products Co., 108 S.Ct. 1666 (1988): In this case, the Court decided that the EEOC has jurisdiction to decide a discrimination charge filed within the extended 300-day period granted by Section 706(e) of the 1964 Civil Rights Act, even though the EEOC transmitted the charge to a state fair employment agency and the charge, when filed, was untimely under state law. Justice Marshall delivered the opinion for the Court. In a portion of the opinion joined by four other justices, Marshall noted that under Title VII, a claimant must file a discrimination charge with the EEOC within 180 days of the alleged discrimination. If a complainant initially institutes proceedings with a state or local agency that has authority to grant or seek relief, however, the time for filing with the EEOC is extended to 300 days. Under the statute no charge may be filed with the EEOC until 60 days after the charge is initially filed with the state or local agency, unless the state or local agency action was "earlier terminated". Marshall said that the question in this case was whether the state agency action was "earlier terminated". If the state agency's waiver "terminated" its proceedings, the charge properly was filed with the EEOC within the 300-day limit; if not, the charge was not timely because the 60-day deferral period did not expire until well after the 300-day limitation period. The Court, deferring to an EEOC interpretation, concluded that the state agency's action was "earlier terminated". It reasoned that the statutory term "terminate" does not mean "to end for all time." In a portion of his decision joined by three justices, Marshall said that the legislative history of the Title VII deferral provision demonstrates that the EEOC's interpretation of the word "termination" is consistent with the statute. Justice O'Connor concurred in part, but rejected any suggestion that the EEOC's interpretation of the "termination" language was the only possible interpretation. Justice Stevens, joined by two justices, dissented. He said that the Court's decision was not faithful to the plain language or legislative history of Title VII, and did not square with the Court's prior interpretations of this provision. F-10 ARBITRATION United Paperworkers International Union v. Xisco, Inc., 108 S.Ct. 364 (1987): In a unanimous opinion, the Court ruled that the Court of Appeals for the Fifth Circuit should not have set aside a labor arbitration award that ordered reinstatement of an employee who was discharged for violating an employer's rules against the possession or use of drugs on company property, even though the court was con- vinced that the arbitrator's decision was wrong. The opinion by Justice White emphasized the limited role that courts play in reviewing arbitrators' decisions and said that arbitration awards are legitimate if they draw their essence from collective bargaining agree- ments. A court's refusal to enforce an arbitration award must be based on an explicit public policy that is well defined and dominant--not one simply ascertained from general considerations of public policy. White explained that the court below had made no attempt to review existing laws and legal precedents, but simply formulated a general "public policy". Even if that policy formulation could be accepted, White continued, the employer in this case had failed to show a clear violation of the policy. Justice Blacknun, in a concurring opinion joined by Justice Brennan, pointed out that the Court did not decide the question for which it granted certiorari; namely, whether a court may refuse to enforce an arbitration award on public policy grounds only when the award itself violates positive law or requires illegal conduct by the employer. Blacknun also noted that the Court had not decided how a court's authority to set aside an arbitration award on public policy grounds differs from its authority, outside the collective-bargaining context, to refuse to enforce a contract on public policy grounds. CONSTITUTIONAL ISSUES Lyng v. International Union, United Automobile Aerospace and Agricultural Impnlement Workers of America, 108 S.Ct. 1184 (1988): In this case, the constitutionality of a Food Stamp Act provision that prohibits households from becoming eligible for participation in the food stamp program while a member of the household is on strike was called into question. In a 5-3 opinion, Justice White stated that the statute does not interfere with the First Amendment right of strikers to associate with their families. He found it unlikely that the statute would prevent individuals from continuing to associate together in unions. White also said F-li that the statute does not create governmental coercion over the union members' beliefs. The Court held that the provision does not violate the equal protection component of the Fifth Amendment, since it is rationally related to the legitimate governmental objective of avoiding undue favoritism in private labor disputes. Also, White said, another stated goal of the statute, cutting federal expenditures, is a legitimate governmental concern. Justice Marshall, joined in dissent by two others, stated that the provision does not achieve the governmental objective of preserving food stamp funds for those most in need. It also does not represent a neutral act by the government in employer-employee relations. SUPREMACY CLAUSE Goodyear Atomic Corp. y. Xiller, 108 S.Ct. 1704 (1988): This case involved an attack on an Ohio constitu- tional provision that required employers to pay a supple- mental unemployment compensation award to employees who were injured because of an employer's violation of a state safety requirement. The Court held that the Supremacy Clause does not bar Ohio from subjecting a private contractor operating a federally owned nuclear production facility to Ohio's worker's compensation laws. In a 6-2 opinion written by Justice Marshall, the Court noted that the activities of federal installations, even if carried out by a private contractor, are shielded from direct state regulation by the Supremacy Clause unless Congress has provided clear and unambiguous authorization for the state regulation. In this case, the Court found such authorization in 40 USC 290. Marshall said that Section 290 compels the same worker's compensation award for an employee injured at a federally owned facility as the employee would receive if working for a wholly private facility. JUDICIAL INMUNITY Forrester v. White, 108 S.Ct. 538 (1988): The Court concluded that a state judge's demotion and discharge of a court employee is an administrative decision, not a judicial one, and therefore is not entitled to absolute immunity from damages liability in a 42 USC 1983 action. Justice O'Connor, writing for an almost unanimous Court, noted that the Court generally has taken a "func- tional" approach to deciding immunity questions that are not F-12 resolved by express statutory or constitutional enactments, and that the Court has been sparing in its recognition of absolute immunity claims. Judicial immunity is compara- tively sweeping, she said, since it protects the finality of judgments, discourages inappropriate collateral attacks, and insulates judges from vexatious actions by disgruntled litigants. However, she stated, the Court has recognized a difference between "judicial" actions and "administrative" actions that judges may be called upon to perform. Judges have not been accorded absolute immunity for administrative actions, said O'Connor. Justice Blackmun joined most of the Court's opinion but, without explanation, withheld his vote from that portion of O'Connor's opinion that laid out the Court's "functional" approach to immunity and its sparing recogni- tion of absolute immunity claims. SIGNIFICANT SUPREME COURT LABOR AND EMPLOYMENT CASES DECIDED OR PENDING DURING 1988-1989 NATIONAL SECURITY ACT OF 1959 Carluoci v. Doe, 109 S.Ct. 407 (1988): The Court ruled that the National Security Agency had the authority to fire an employee who confessed to having homosexual relations with foreign nationals without first providing a hearing mandated under federal employment statutes or without determining, under the NSA Personnel Security Procedures Act, that a hearing or other termination procedures would interfere with national security. The Court agreed with the NSA that its termination for cause procedures are authorized under the National Security Act of 1959, which empowers the Secretary of Defense or his designee to appoint NSA employees. Although the 1959 Act does not refer to termination, the Court held that, absent a specific provision to the contrary, the power of removal from office is incident to the power of appoint- ment. The Court also found that the language and legis- lative history of the federal employment and NSA statutes show that these statutes are discretionary in nature, enacted to increase an agency's termination authority, not to limit such authority. F-13 STATE ACTION National Collegiate Athletic Assoc. v. Tarkanian, 109 S.Ct. 454 (1988): The Court held that sanctions imposed by the NCAA against a college for using improper recruiting practices may not be directed at individuals. The threat of additional penalties against the institution if a basketball coach is not suspended, however, does not constitute a "state action" entitling the coach to civil rights remedies. According to the Court, the NCAA's participation in the events that led to suspension of the coach in this case did not constitute state action, nor were they per- formed "under color of" state law. The Court reasoned that NCAA action cannot be deemed to be state law under the theory that it misused power it possessed by acting through the state to illegally go after an individual. The Univer- sity's decision to adopt the NCAA standards did not trans- form them into state law, and it was the school, not the Association, that suspended the coach. LABOR-MANAGENMNT REPORTING AND DISCLOSURE ACT Reed v. United Transportation Union, 57 U.S.L.W. 4088 (1989): This case involved what statute of limitations governs a claim by a union member under Section 101(a)(2) of Title I of the Labor-Management Reporting and Disclosure Act of 1959, alleging that the union violated its member's right to free speech as to union matters. There is no statute of limitations expressly applicable to Section 101 actions. The district court held that North Carolina's three-year statute of limitation for personal injury actions applied. The court of appeals reversed and held that the claim was governed by the six-month statute of limitations set forth in Section 10(b) of the NLRA for filing unfair labor practice charges with the NLRB. In an opinion by Justice Brennan, joined by six other justices, the Court held that Section 101(a)(2) claims are governed by state general or residual personal injury statutes of limitations, rather than the six-month limitation period of the NLRA. Brennan stated that claims under Section 101(a)(2) are analogous to state personal injury actions and do not implicate federal interests or litigation practicalities that compel search beyond state laws. Justice Scalia filed a concurring opinion. Justice White dissented. F-14 Sheet Notal Workers' International AssoC. V. Lynn, 57 U.S.L.W. 4098 (1989): The Court ruled that removal of a local union's elected business agent, in retaliation for statements he made at a union meeting in opposition to a dues increase sought by a union trustee, violated the Labor-Management Reporting and Disclosure Act of 1959. The Court found that the business representative's right to freedom of speech had been violated. The removed official was not stripped of union membership or prevented from attending the meeting and expressing his views or casting his vote. The Court held, however, that his removal from office interfered with his free speech rights by forcing him to choose between them and his job. The Court also that the removal of an elected official has a chilling effect on the rights of the members who voted him into office. The Court said that the offi- cial's rights were unaffected by the fact that the trustee, appointed by the union's international association, was legally empowered to suspend the local union's officers and business representatives. MINORITY SET-ASIDES Richmond v. J. A. Croson Co., 57 U.S.L.W. 4132 (1989): The Court struck down Richmond, Virginia's requirement that 30% of the city's construction subcontracting be set aside for minority businesses, because it was not supported by proof of past discrimination in the city's construction industry and was not narrowly tailored to accomplish a remedial purpose. The Court held that none of the facts cited by the city as its basis for the set-asides established a case of discrimination by anyone in the city's construction indus- try. While statistical evidence showed a disparity between the number of prime contracts awarded to minorities and the city's minority population, the Court said that a more proper analysis would compare the percentage of qualified minority businesses in the relevant market with the per- centage of city contracts awarded to minorities. The Court ruled out use of a general assertion of nationwide discrimination in the construction industry as justification for the set-asides, because a general asser- tion provides no guidelines for the city to determine the scope of the injury it seeks to remedy. The Court found that the factors the city claims were responsible for past societal discrimination -- deficiencies in working capital, inability to meet bonding requirements, unfamiliarity with bidding procedures, and inadequate track records -- are nonracial in character and could be addressed by F-15 race-neutral programs. The Court also said that the city's plan was not narrowly-tailored enough because it randomly included several minorities as eligible for the set-aside and allowed minority business anywhere in the country to participate in the plan. DISCRININITION Patterson v. XcLean Credit Corp., No. 87-107; When Patterson first petitioned the Supreme Court to hear her case, she was merely asking that the Court look at the scope of 42 USC 1981. She wanted to know whether it covered cases of racial harassment in the workplace. After the justices heard arguments on that issue last term, they announced that they were setting the case for reargument. Over the objec- tions of four justices, the Court requested briefs on whether it should reconsider its holding in Runyon v. McCrary, 427 US 160 (1976), that 42 USC 1981 applies to private acts of discrimination. Under Section 1981, a party can get damages; under the Equal Employment Opportunity Act, employees are limited to back pay awards and equitable relief such as reinstatement. Patterson claims that Runyon should not be over- turned. As the majority in Runyon stated, both Sections 1981 and 1982 are derived from the 1866 Civil Rights Act, and Congress did not intend to repeal the part of the 1866 act that contained what is now Section 1981 when it recodified the federal statutes in 1874. She argues that Congress intended to prohibit both public and private actions when it enacted the 1866 act. Moreover, Congress has ratified and adopted the decision in Runyon and other cases that Sections 1981 and 1982 prohibit discrimination by private parties. Patterson further argues that the doctrine of stare decisis should prevent the overruling of Runyon. Her opponents argue Section 1981 was meant only to prevent states from acting to deny the right to contract. They claim that Section 1981 is derived from Section 16 of the 1870 Enforcement Act, and thus is based on the Four- teenth Amendment, which would mean that the Section would apply only to state action. They argue further that there never was a private right of action under the 1866 act. They state that considerations of stare decisis should not prevent the overturning of Runyon. Adherence to an incor- rect decision would amount to legislation by the courts, in violation of the separation of power doctrine, they claim. Moreover, the doctrine of stare decisis requires flexibili- ty, not rigid adherence to past precedent. Even if Sec- tion 1981 were to be restricted, they assert that little change would be expected in conduct presently affected by the statute. F-16 Wards Cove Packing Co., Inc. v. Atonio, No. 87-1387. In this case, the Court will decide whether statistical evidence that shows a disparity between the proportion of minorities in the jobs at issue in a suit under Title VII of the 1964 Civil Rights Act, and the proportion of minorities in other job classifications, make out a prima facie case of disparate impact in selection for jobs. It will also look at whether disparate impact analysis allows employees to challenge the cumulative effect of a wide range of alleged employment practices, and whether the Court of Appeals improperly allocated the burden of proof in this case, and engaged in impermissible fact-finding when applying the disparate impact analysis. The Ninth Circuit held that the statistical evidence presented by the plaintiffs in this case estab- lished a prima facie case of disparate impact caused by certain employment practices, and that the employer had to be given the opportunity of showing business necessity. DRUG TESTING National Treasury Eployees Union v. Von Raab, No. 86-1879: This case challenges a Customs Service re- quirement that all employees applying for positions involv- ing narcotics interdiction, carrying firearms, or handling classified material, take a drug test as a condition for employment. The Customs Service drug testing program was upheld by the Court of Appeals for the Fifth Circuit. Contrary to the position maintained by the government, the Court held that the test was a search subject to Fourth Amendment's protections. It reasoned, however, that the testing program was not "unreasonable" and therefore it did not violate the Fourth Amendment's prohibition against "unreasonable searches and seizures". The Fifth Circuit said that the testing program was not unreasonable because the Customs Service had limited and tried to minimize the intrusiveness of the search. The court also found that the government had legitimate interests in protecting against drug use. The union argues in its Supreme Court brief that all courts that have considered this issue have held that urine drug testing implicates the Fourth Amendment. The union claims that when the Customs Service began its drug testing program, it had no reason to believe that its workforce had a drug problem. The union argues that the Service's claimed right to conduct drug testing is without probable cause, reasonable suspicion, or a showing that drug use is a problem among its employees. Therefore, it goes F-17 beyond any authority that the Supreme Court has recognized as legitimate. The government agrees that a balancing of inter- ests is necessary, but argues that the balance should be in favor of the Customs Service. It claims that the drug testing program is only minimally intrusive because it is part of an ongoing employment relationship, the test is applicable only to employees who have applied for and been accepted for certain jobs, and the drug testing procedures are narrowly tailored to respect employee's privacy expec- tations. The government brief claims that the governmental interests at stake are substantial and therefore the program should be upheld. Burnley v. Railway Labor Executives' Assa., No. 87-1555: In this case, the Court will examine a drug testing program applied to employees in private industry. The Federal Railroad Administration imposed a program requiring drug and alcohol testing for all "covered employ- ees" involved in major accidents, impact accidents, and accidents that result in the death of a railroad employee. All members of the train crew are tested after an accident. If an employee refuses to take the test, he is disqualified from work for nine months. The program requires employees to submit to testing whenever a supervisor suspects an employee is under the influence. Testing may also be required whenever an employee violates certain operating rules. The Court of Appeals for the Ninth Circuit concluded that the tests are searches for purposes of the Fourth Amendment. It noted that blood tests have long been considered searches, and that every court to consider the issue has held that urine tests are searches. The court looked at whether there was sufficient government action in this case to implicate the Fourth Amendment. The FRA contended that all the regulations did was authorize private railroads to carry out the testing. The Ninth Circuit rejected this view, and stated that whenever the government is significantly involved in conduct leading to a search, the Fourth Amendment is called into play. The government was involved in this case, said the court, because it helped develop and implement the testing program. The court considered what standard to apply in this case. In balancing employees' privacy interests and the governmental interest in safe and efficient operation of the railroads, the Ninth Circuit stated that probable cause is not required, but the search must be reasonable at its inception and reasonably related in scope to the circum- stances that justified the interference in the first place. F-18 The court concluded that for tests to be reasonable at their inception, there must be some particularized suspicion. Accidents, incidents, or rule violations in and of them- selves do not create reasonable grounds for suspecting drug or alcohol use by any one railroad employee, much less the entire train crew, said the court. It found that blood and urine tests intended to establish drug use other than alcohol use are not reasonably related to the stated purpose of the tests, because the tests cannot measure current drug intoxication or degree of impairment. Therefore, the court concluded that drug testing should be allowed only when there is individualized suspicion of drug use because of observable symptoms. Then a positive drug test would supply a sound basis for appropriate disciplinary action. The Ninth Circuit noted that the tests in this case were conducted in a generally reasonable manner and that the intrusiveness was reduced as much as possible. OTHER SIGNIFICANT DBVELOPMENTS IN ENPLOYMENT LAW WRONGFUL DISCHARGE IN CALIFORNIA Foley v. Interactive Data Corp., 47 Cal. 3d 654 (1988): In this landmark decision, the California Supreme Court clarified California wrongful termination law. All of the justices agreed that an implied in fact contract can exist. Such an implied contract can include an obligation on the part of the employer to use "good faith and fair dealing" and terminate only for good cause. Importantly, the court then held 4-3 that damages recoverable in wrongful termination lawsuits for breach of an implied contract or the covenant of good faith and fair dealing are limited to contract damages. Tort remedies such as emotional distress and punitive damages, are not available for such claims. The court also found that terminated employees may sue their employers for violation of "public policy," for which emotional distress and punitive damages may be awarded. Although it did not specifically state what constitutes a "public policy" violation, the court did say that it must involve policies which affect the public at large, not just a particular employee and employer. F-19 A LEXICON OF ALTERNATIVE DISPUTE RESOLUTION PROCESSES Rocco M. Scanza and Michael E. Wolfson Alternative Dispute Resolution (ADR) is a concept both old and new. It has long defined a family of dispute resolution processes which afford pardes a means of resolving disagreements without resorting to available court processes. Employing a variety of tech- niques and trained professionals, ADR has grown increasigly popular as pardes have become disenchanted with the costly, confusing and protracted procedures which today exist in the state and federal courts. Dissatisfaction with the delay and burden imposed by existing court processes has become so wide spread that even the courts have begun to adopt ADR procedures in an attempt to offer more efficient, expeditious and credible dispute resolution services. These ADR processes, however, remain within the court system, yet afford an alternative, not to the system itsel4 but to the need for a trial as the ultimate dispute resolution mechanism. To understand the breadth and creative momentum that exists today in the field of alternative dispute resolution, a simple lexicon, which briefly descrlbes some of the more popular ADR processes, is an invaluable tool for those who seek new ways to resolve old problems. A. Altemative Dispute Resolution Processes Outside the Court System 1. Arbitration Arbitration is the traditional and still most popular form of ADR. It involves the submission of a dispute to an impartial third party who is empowered to render a decision after conducting a hearing. Arbitration, while exhibiting some of the characteristics of liti- gation, is less formal, more flexible, faster, cheaper and gives the disputants greater control of the resolution process than they have in litgation. The impartial decision maker is F-20 selected by the pardes and usually possess expertise relevant to the parties dispute. The term "arbitration" encompasses a number of variations, the most common forms of which include: (a) Binding Arbitration - The pardes agree that the arbitrator's decision shall be binding upon them and give finality to resolution of their dispute. State and federal law allows a party to enforce a binding arbitration decision in court. (b) Advisory Arbitration - While the impardal decision maker is empowered to conduct a hearing and render a decision, the parties retain the right to accept or reject the arbitrator's decision. The decision, however, coming from an impartial third-party, often forms the basis for further negotiations and ultimate resolution of the dispute. Commonly used in the public sector, advisory arbitration is rarely utilized by private sector employers and unions. (c) Grievance Arbitration - In labor management relations, grievance arbitration is the traditional method of resolving disputes under the provisions of a collective bargaining agreement. The vast majority of labor contracts provide for grievance procedures which conclude with final and binding arbitration. (d) Interest Arbitration - Used primarily in a collective bargaining context, most often in the public sector, interest arbitration is invoked where the pardes, having resolved some issues, have reached an impasse on others. The arbitrator is given authority to decide the remaining issues upon which the parties cannot agree. (e) Last or Final Offer Arbitration - This is a variation of interest arbitration. The arbitrator is presented the last or final offer of each party on the issues in dispute and is required to choose between them. The arbitrator is not permitted to impose a solution other than those included in the parties F-21 last or final offers. This form of arbitration is used to resolve certain public sector disputes and disputes involving the saay demands of professional athletes 2. Mdadn Mediation is another traditional and popular method of dispute resoludoL It is used in both the public and private sectors The mediatos function, as opposed to that of an arbitrator, is to ast the pardes to reach a negotiated settlement of their dispute. The mediator is not empowered to render a decision or impose a solution on the parties, but only to assist them In arvng at their own solutions The mediator helps promote commu- nication, reduce tensions, focus the parties on the actual issues involved, help them explore viable solutions and generally work to structure and facilitate a construcdve dialogue between the disputants. 3. ?onilltion Conciliation is often confused with mediation But while mediation is a more for- mal and structured process in which the mediator takes an actve and major role, concilia- tion is a more of an informal process in which the conciliator merely attempts to improve communications between the parties by providing a place to meet, low key technical assistance and even, when necessary, act as a go-between. Conciliation is frequently used in situations where parties are unable or unwilling to come to the bargaining table and negotiate their differences. The conciliator helps to open channels of constructive commu- nication in order that meaningfl bargaining can begin. 4. F Factfinding is a process which is pdmarily used in public sector collective bargaining disputes. The neutral factfinder, who has been selected by the parties, investigates the dis- puted issues and reports his or her finding to the disputants. Tbe factfinder may also be F-22 empowered to submit recommendadons to the pardes regarding resoludon of the issues in dispute. Factfinding s non-binding in nature, but It inject into the negotiation process the reality of an impartal third parts findings, thus often faclitating a new and constructve dialogue between the pardes. 5. Q An Ombudsperson is a third party who receies investigates and attempts to resolve complaints or grievances within an Insttution An ombudsperson may take such acdons as brnging problems to the attendon of high-level or top management officials, advising com- plainants about available options and recourses, propoing settlement of an individual dis- pute and/or proposing systematic changes in the institution itself to preclude further dis- putes of the same nature. Ombudspersons have traditionally been used in universities and various governmental agencies to assist students, employees and the public in dealing with grievances and complaints which arise as a result of institutional acdons. Ombudspersons are now being used with greater frequency in the private sector as a means of providing individuals with an impartil and independent resource to investigate complaints and facili- tate soludons and appropriate changes within a company or organizaton 6. ini-Trial Tne first mini-trial was used a little over a decade ago. Since that time, mini-trials have become an increasingly popular form of dispute resolution. Mini-trials are not trials in the convendonal sense. They usually involve a private session or two, lasting a day or less, in which a representative of each party, often a lawyer, present their "best case" in simple narradve form, to representadves of each side who have authority to settle the mat- ter. A neutral advisor is often used to preside over the session, keep it fair, open and thorough. At the end of the pardes presentadons, the negodators, with a clear view of each side's "best case," immediately attempt to resolve the dispute through intensive negotiatioL Should they wish to, the negotiators may ask the neutral advisor for his or her opinion regarding the merits of the pardes positions or how a court might decide the matter. F-23 7. Public Poliq Dialogue and Mediated Neggdations This is a process which employes mediation and facilitation techniques to help struc- ture and implementvarous regulatory or legislative actions. It brings together representa- tives of business, public interest groups and government agencies to explore specific regulatory or legislative matters. le dialogue is intended to identify areas of agreement, narrow areas of disagreement and pinpoint areas and topics for negotiation. The process seeks to have the affect pardes, with the aid of a mediator or facilitator, arrive at a regulatory or legislative approach that each group can live with and which takes account of all groups varying interestL This process has been used in the environmental area to struc- ture and implement vanrous government regulations. B. Alternative Dispute Resolution Processes, Within the Legal System, Which Provide An Alternative to TriaL 1. Court-Annexed or Jud'ici'al Arbitration In accordance with established statutory criteria, judges refer civil matters to a court-supervsed arbitradon process in which arbitrators render non-binding decisions. If one party or the other chooses not to accept the arbitrator's decision, the case is returned to full control by the court and will be scheduled for trial as if no arbitration had taken place. In the majority of cases assigued to judicial arbitration, the parties accept the arbitrator's decision or use it as a basis for renewed negotiations often leading to settle- ment. 2. Rent-aug Rent-a-Judge is a popular name given to a procedure, presently authorized in a number of states, in which the court, upon agreement of the parties, can refer a pending lawsuit to a neutral third-party, who has been selected by the disputants, to try the case in a private and somewhat less formal environment. The third-party, usually a retired judge, is F-24 granted most of the powers of a trial judge and his or her decision stands as the decision of the trial court with the same effect as thougb the case had been tried in a courtroom before a judge. The decision of the third-party neutral can be appealed through the regular appel- late system just as a normal court decision can. 3. ummayJ-ud Tnals Created less than a decade ago, this process is used in a number of federal courts. Incorporating some elements of the mini-trial and judicial arbitration, the summary jury trial requires the pardes and their attornes to appear in a federal courtroom before an advisory jury for an abbreviate session in which the lawyers present, in narrative form only, their "best case." The jury briefly retires, comes to a decision and announces its decision to the pardes, often with an explanation for how it arrived at the conclusions it did. With this input, the parties are required to immediately undertake negotiations in an attempt to resolve the case. If they are unable to reach a resolution, the case is returned to full con- trol by the court and will be scheduled for a trial as if the summary jury trial had never occurred. Whfle the above ADR lexcon only perfunctorily covers the more wide spread and well known alternative dispute resolution processes available today, it should clearly demonstrate that litigation is not the only way, and certainly not always the best way, to resolve a dispute in which pardes find themselves unable to arrive at a resolution on their own. The vitality and growing importance of ADR, fueled as it is by concerns for speed, efficiency, fairness, credibility and cost, gives a new dimension to the search for viable methods to deal with the kind of conflicts which are inherent in an organized society. Creating or matching a process to the needs of a dispute, instead of trying to conform a dis- pute to the needs of an inappropriate or overtaxed process, is the fundamental message of the alternative dispute resolution movement. Creative use of existing ADR processes or the creation of new or bybrid processes provides opportunities for the ldnd of dispute resolution that produces solutions with a minimum of conflict and a maxmum of satisfac- tion. F-25 G. COLLECTIVE BARGAINING Collective bargaining and labor-management relations, 1988 Some employers and unions continued to grapple with difficult problems: maintaining solvency and preserving jobs in the face of challenges from nonunion firms as well as foreign competitors GEORGE RUBEN The flexibility and ingenuity of unions and management were again tested in 1988. The parties continued to strug- gle with two problems that have colored labor-man- agement relations throughout the 1980's-preserving jobs and keeping companies economically viable. These problems, which appear likely to continue, although per- haps abated in some cases, stemmed largely from comp- etition at home and abroad. American-made goods were challenged by products of industrialized and developing countries-products that were sometimes better made or less expensive, or both. Some foreign companies opened plants in the United States, while others entered into joint ventures with American companies, resulting in a blend- ing of production methods and labor-management rela- tions approaches that will apparently become increasingly significant in some industries. Established firms in industries such as trucking, airlines, and telephone communications that, by their nature, are less vulnerable to foreign competition, faced competition from new firms that entered after the industries were dere- gulated. Often the established firms were unionized, while the new ones were not and benefited from lower labor costs. Some unions and companies, acknowledging their common destiny, cooperated in trying to overcome the nonunion competition by improving productivity and qual- ity and lowering labor costs, while giving employees job assurances and a monetary stake in the success of the com- pany. In some cases, where their members' financial sacrifices had helped companies compete and regain profit- ability, unions sought a share of the gains for those members. Efforts to restrain labor costs are reflected in the size of wage adjustment under major collective bargaining agreements. Settlements covering 1,000 workers or more in private industry reached between 1982 and 1987 pro- vided wage adjustments averaging between 1.6 and 3.8 percent annually over their life; during the first 9 months of 1988, the average was 2.4 percent. By contrast, between 1972 and 1981, the over-the-life average was between 5.1 and 7.9 percent annually. Another indication of the state of labor-management relations is the decline in the number of major work stop- pages (strikes and lockouts involving 1,000 workers or more). In most years between 1947 and 1979, there were typically between 200 and 400 major stoppages. The number dropped to 187 in 1980, and continued to decline (with one interruption) to a record low of 46 in 1987. Through November of 1988 there were 31 major stop- pages, indicating that the year would probably end with a record low. Other characteristics of labor-management relations in 1988 are less easily measured in statistical terms, but are evident in the following discussion of developments in individual industries and firms. George Ruben is a project director in the Division of Developments in Labor-Management Relations, Bureau of Labor Statistics. Reprinted from Monthly Labor Review, January 1989, 25-39. G-1 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 Trucking The year was momentous for the trucking industry, and more so for the Teamsters union, as labor and manage- ment negotiated a new master freight agreement that was widely opposed by union members. The Teamsters' diffi- culty in resolving the controversy over the settlement was exacerbated by a change in leadership following the death of president Jackie Presser and a Federal lawsuit alleging some of the union's leaders, including new president Wil- liam J. McCarthy, permitted "Cosa Nostra figures to dominate and corrupt important ... locals, joint coun- cils, and benefit funds." The Teamsters' settlement with Trucking Management Inc., the industry's lead bargaining association, drew strong criticism from union members, particularly the Teamsters for a Democratic Union, a dissident group. The group claimed the accord lacked adequate wage in- creases, a return to the 1-year progression to top pay rates that applied to new employees hired prior to the 1985 contract (which extended the period to 3 years, followed by a reduction to 18 months under the 1988 contract), an "adequate" limit on use of casual, lower paid employees, a ban on "doublebreasting" under which employers operate both union and nonunion units, and adequate repayment guarantees to employees who loan employers money un- der a new plan to assist companies in financial difficulty. More criticism arose when Teamsters leaders declared the accord ratified, although 63.5 percent of the 100,883 participating employees voted against it. Praser said the action was necessary because the industry was "in finan- cial chaos," and that the union's constitution permitted acceptance of a contract even if less than two-thirds of the votes are cast against the terms. Union members challenged the contract acceptance in court, contending that the constitutional provisions refer- red to authorizing a strike, not acceptance of a contract. The issue was settled when the Teamsters executive board agreed that the fate of all future contract proposals would be based on a simple majority of votes cast. Incoming president McCarthy, who had opposed the settlement, called for a reopening of negotiations, but the employers refused and the contract remained in effect. Difficulty also arose in bargaining between the Team- sters and the National Automobile Transporters Associa- tion Labor Division, comprising companies that transport new vehicles from factories and ports of entry to dealers. A settlement for the 20,000 workers was rejected by 72 percent of the 12,657 employees casting ballots. The Teamsters for a Democratic Union also opposed this contract proposal, contending that the wage terms were inadequate, particularly a provision that would have permitted lower rates on "new business" taken away from railroads. Later, 66.7 percent of the participating employees voted for a revised 3-year contract that eliminated the "new business" provision. Other wage terms included a S 1.20 increase in hourly rates, a 6-cent increase in the rate per loaded mile, and a 2-cent increase in the backhaul rate for hauling vehicles on return trips. Air transportation There were sharp contrasts in financial results among the major airlines. Delta, United, and American had re- cord profits for the first three quarters of 1988, while Eastern Airlines suffered a loss of $223 million. Texas Air Corp.-Eastern. Eastern's difficulties were only the latest among its financial problems that began in the early 1970's and have increased since the deregulation of the industry in 1978. Clearly,' 1988 was a difficult year, involving a complex shifting mix of company demands for compensation concessions by employees, union charges of corporate mismanagement, company sales and planned sales of assets, and company and union legal tests of the other's resolve. Following in chronological order are some of the more significant developments. In March: * A Federal judge barred Eastern from selling Eastern Air Shuttle to its parent Texas Air Corp. without first negotiating with the Machinists union, which repre- sents mechanics and other employees at Eastern. In April: * The Department of Transportation's Federal Aviation Administration (FAA) proposed to fine Eastern $832,000 for alleged safety violations and began a safety check of Eastern's planes and those of other Texas Air units. The FAA investigation did not uncover any significant safety problems. The Secretary of Transportation criticized the members of the pilots' union for filing large numbers of undocumented safety complaints. He later appointed a mediator to resolve the safety dispute between Eastern and its unions. In May: * Texas Air sued the Machinists and the Air Line Pilots for $1.5 billion, contending that the two unions were conducting an illegal conspiracy to destroy Eastern Airlines. * Eastern posted a 26.3-percent drop in traffic in May, the worst drop in 5 months of progressively larger de- clines. The drop was attributed to continued planned cuts in operations and to public concern stemming from safety developments. * Texas Air canceled its plans to transfer Eastern to an- other unit of Texas, apparently improving the bargain- ing climate between Eastern and the unions. G-2 * Leaders of Texas Air, Eastern, and its three unions signed an agreement intended to resolve the public's concern about flight safety. * Eastern pilots proposed a 4-year contract calling for annual wage increases beginning in 1989, but also in- cluding increases in flying time, cuts in paid vacations, and other concessions. * Eastern dropped its demand for a pay cut and asked for productivity improvements amounting to $69 million a year. In its talks with the Machinists, Eastern proposed a 4-year contract that included improved job security provisions, but continued to ask for the same 20-per- cent wage cut the pilots and flight attendants accepted in 1986. The Machinists proposed a 2-year contract calling for a 6.5-percent wage increase. * Eastern announced a cutback in operations, eliminat- ing 4,000 jobs, including 2,500 held by members of the three unions. The Machinists and the Air Line Pilots later sued to stop the action, contending that certain aspects of the action were subject to collective bargain- ing, but the company won on appeal. In August: * The Machinists submitted to its members-without a leadership recommendation for approval-an Eastern proposal for an average 20-percent pay cut. About 98 percent of the votes cast were against the proposal. In October: * Texas Air Corp. announced it was selling its Eastern Air Shuttle to developer Donald Trump for $365 mil- lion. The unions at Eastern then sued to block the sale; a decision was expected to be handed down in 1989. Under the proposed sale, the 850 employees would have the option of moving to the new Trump Shuttle with their existing contract benefits or staying with Eastern. In November: * Eastern reported a $112.9 million loss for the third quarter. * Eastern terminated contracts that had called for Conti- nental to train pilots and flight attendants to fly for Eastern in the event of a strike. * Texas Air announced that Eastern was not for sale- that it was confident it would win contract concessions from the unions. United Airlines. The difficult labor-management and la- bor conditions that prevailed at United Airlines at the end of 1987 continued through 1988. The Air Line Pilots, representing 7,000 pilots, continued efforts to purchase Allegis Corp., United's parent. The union admitted that a successful purchase was contingent on winning its court case involving the 1987 contract between the Machinists and United, in which the Air Line Pilots contended that the contract included "protective covenants" intended to thwart the purchase. From the beginning, the Machinists was against the purchase offer, even if it included 20,000 Machinists members at United. United also moved to thwart the buyout by offering the pilots a 5-year contract providing for no general wage changes, a cumulative 10-percent increase to employees hired since 1985 to narrow the two-tier pay differential, and some changes in work rules to increase productivity. In an unsuccessful effort to sell the contract to the union members, United contrasted the terms with the buyout offer, which would have required the pilots to give up 25 percent of their pay for 10 years. Bargaining continued between United and the Associa- tion of Flight Attendants, whose 13,000 members had rejected a tentative accord reached late in 1987. American Airlines. The Association of Professional Flight Attendants ratified a 5-year contract negotiated with American Airlines late in 1987. The chief bargaining issue-a union call for a narrowing of the differential between two pay tiers-was resolved by shifting lower tier workers to the top rate of the upper tier after 8 years of service. Other terms included $600 lump-sum pay- ments in 1988, 1990, and 1992. American's pilots achieved a narrowing of their two- tier differential in a March 1987 settlement, leaving only the Transport Workers to bargain on the issue when its contract expires in 1989. All three unions had agreed to two-tier pay in 1983. USAir. usAir and the Association of Flight Attendants negotiated a 1-year contract that raised wages for nearly all employees and begins to equalize the two pay scales that existed when Pacific Southwest Airlines merged into USAir in April. The remainder of the disparity will be eliminated early in 1989, when Piedmont Airlines merges into USAir. Pied- mont's flight attendants will also be paid at usAir rates beginning then. Other terms of the 1988 settlement included adoption of a 401(k) savings plan for all workers and inclusion of the former Pacific Southwest workers in the USAir pen- sion plan. Pan Am. Financially-troubled Pan American World Airways moved from crisis to crisis in 1988. Early in the year, the company had some success in its efforts to win $180 million in annual labor cost cuts from its unions. Pan Am settled with the Airline Pilots and the Flight Engineers Beneficial Association on 3-year contracts that called for a 22-percent reduction in pay in return for eq- uity shares in the company. About 1,500 pilots and 800 G-3 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 flight engineers were involved. Pan Am did not reach agreement with the Teamsters for 4,300 reservations clerks, dispatchers, and gate attendants, but did impose an 8-percent pay cut under provisions of the Railway Labor Act, which permit such action (or an employee strike) 30 days after either party refuses to use arbitration to resolve a dispute. Combined, the cuts for the three groups amounted to a $1 18 million savings for Pan Am. After rejecting a tentative settlement, members of the Independent Union of Flight Attendants accepted a 39- month contract. This left unresolved only the contract with the Trans- port Workers Union, whose members had rejected an earlier contract. At yearend, the union and the company entered into binding arbitration to settle their differences. Delta. Delta Airlines, Inc., the only major carrier that is substantially nonunion, terminated the two-tier pay sys- tem it had implemented in 1987. This was accomplished by merging the lower pay schedule into the higher scale. All of the 47,000 nonunion employees now in the single tier also received wage increases because all progression steps of the new common schedule were increased. Previ- ously, employees in the lower tier took longer to reach top pay steps, which were the same for both tiers. Although the nonunion employees had not received a wage increase during the 1985-87 period, they did receive a bonus in 1987 equal to 5 percent of their annual pay. Around midyear, the Teamsters announced a drive to organize 6,000 fleet service workers at Delta. Teamsters officials conceded that Delta employees are the highest paid in the industry, but contended that there was strong sentiment for the representation drive among employees incorporated into Delta when it merged with Western Air Lines in 1987. Some of these employees had been repre- sented by the Teamsters and others by the Air Transport Employees Union. At the time of the announcement, only two groups of Delta employees were organized: pilots, by the Airline Pilots, and dispatchers, by the Professional Airline Flight Controllers Association. Automobile manufacturing In 1988, the automobile industry experienced an accel- eration in the recent movement toward truly international production and sales. One indication of the virtual elimi- nation of national boundaries was an announcement by Japan's Isuzu Motors Ltd. (which is 40 percent owned by General Motors) that it will buy 30,000 engines from General Motors. About 10,000 of the engines will be shipped to Japan for use in vehicles to be exported to the United States and the remaining 20,000 will be used in vehicles made at Isuzu's Lafayette, IN, joint venture with Fuji Heavy Industries, scheduled to begin in 1989. The engines will be manufactured in the United States, Can- ada, and Mexico. On the bargaining front, the Chrysler Corp. settlement completed the employees' movement toward compensa- tion parity with General Motors and Ford employees, following narrowing of the difference in the last two set- tlements. The new Chrysler contract, running until September 1990 (the same expiration date as the Ford and General Motors 1987 agreements), means a return to con- current bargaining. This has not occurred since 1979, when Chrysler and the Auto Workers broke the tradition of simultaneous bargaining and pattern terms because of the company's financial problems. Although Chrysler employees attained their parity goal, the contract ratification vote was close, with only 54 percent of participants in favor of the terms. The re- strained enthusiasm was attributed to a number of factors, particularly the size of the "early settlement bonus"- $1,000 in cash or company stock. At the beginning of the year, Chrysler announced that it would close its stamping and assembly plants in Keno- sha, wi, in September. The announcement triggered bitter denunciations by local and national officers of the Auto Workers and by local government officials. There was a more-or-less amicable resolution of the dispute, as Chrysler agreed to provide benefits to alleviate the impact of the closings on the displaced employees and the community. The resolution ended a State threat to sue Chrysler for violation of an alleged contractual obligation to operate the plants for at least 5 years. Earlier, Chrysler had agreed to postpone the closing of the plants until the end of 1988. Another action that angered Chrysler employees was the company's announcement that it would sell its Acustar parts manufacturing unit, comprising 20 plants employing 10,500 of the 60,000 employees the Auto Workers repre- sents at all operations. In reaction, the union threatened to withdraw from all joint programs to improve productivity and product quality. The union also indicated that all locals would hold strike votes, ostensibly over unresolved griev- ances. Later, Chrysler announced that it would continue operating all of the parts plants except four, which would be closed or sold. These difficulties presumably influenced Chrysler to ask for an earlier-than-usual start of national negotiations (talks began in April, 5 months before the existing con- tract expired). There still were difficulties, as union members reacted adversely to Chrysler's announcement that it was distributing $102 million in stock options and grants to top executives. This announcement, on the sec- ond day of talks, was followed by another that the com- pany was shifting production of two models-scheduled to be dropped in a year or so-to Mexico. Despite these difficulties, the national accord was im- plemented, along with additional local Modern Operating Agreements designed to strengthen Chrysler's competi- tive ability by increasing operating efficiency and product G-4 quality through improved labor-management relations and employee morale. These agreements usually adopt team production techniques and blur the distinctions be- tween management and production employees. The latest of these local agreements, and the first for salaried em- ployees, was for Chrysler's new Auburn Hills Technical Center and its Jefferson Avenue Assembly Plant in De- troit, Mi. This brought the total number of such plans to six. Ford and General Motors have been negotiating simi- lar plans since the early 1980's. Also at Chrysler Corp., Diamond-Star Motors, a joint venture of Chrysler and Mitsubishi Motors Corp. began operations. The plant, located in Normal, IL, produces the Mitsubishi Eclipse and Plymouth Laser models. Elsewhere in the automobile manufacturing industry, there was a settlement between the Auto Workers and New United Motors Manufacturing, Inc., a joint venture of General Motors and Toyota Motors Corp. The 3-year settlement covered 2,100 "team members." It provided for continuation of the Japanese-style labor relations, in- cluding team production methods, a limited number of broad job classifications, and job retention guarantees, except in severe economic downturns. This guarantee was beneficial to the team members because 1988 sales of the General Motors and Toyota models manufactured in the Fremont, CA, plant were below expectations. Under the new contract, New United Motors Manufac- turing employees remained the highest paid in the U.S. auto industry. After the only wage increase-3 percent in July 1990-the 2,000 assemblers will be paid $15.46 an hour and the 200 trade employees will be paid $18.39. The employees will receive a $750 lump-sum payment and an additional payment equal to 3 percent of their 12-month earnings, and will also receive automatic quarterly cost- of-living adjustments (COLA'S) matching those for employees at GM'S wholly-owned plants. The Auto Workers also negotiated a formal agreement with Mazda Motor Manufacturing Corp., culminating its first successful organizing drive at a Japanese-controlled automobile producer. The contract, running to March 31, 1991, provides for full wage and benefit parity with em- ployees the union represents at Ford Motor Co., General Motors Corp., and Chrysler Corp. Ford owns 25 percent of the Mazda plant, located in Flat Rock, Mi. Like the contracts at the Big Three domestic companies, the Mazda contract bans layoffs, except in special circum- stances, and prohibits "outsourcing" (the purchase of parts from outside sources). An important gain for management was a reduction in the number of job classifications, which is expected to increase production efficiency. The events leading to the settlement began in 1984, when Mazda and the Auto Workers signed a letter of intent that called for employees to be paid at 85 percent of the rate for Ford employees from the opening of the new plant until a labor contract was negotiated. The plant began producing MX6 vehicles in late 1987 and Ford Probe vehicles in January 1988. Volkswagen of America closed its New Stanton, PA, plant which had produced 1,197,411 vehicles since it opened in 1976. Prior to the closing, which the company attributed to decreasing sales and increasing costs, Volks- wagen and Local 2055 of the Auto Workers negotiated termination aid to the 2,000 employees. Included were severance pay up to $6,000; limited company-financed health insurance for 12 months; a reduction in the early retirement age to 55, from 60; and establishment of a joint committee to help the employees find jobs. Steel and other metals There were few settlements in the steel industry in 1988 because major contracts, most negotiated in 1986, were not scheduled to expire until 1989 or 1990. Instead, there were continuing legal developments resulting from the severe financial problems that prevailed in 1986 or earlier. During the first three quarters of 1988, most steel compa- nies recorded large and, in some cases, record profits. Contributing to the turnabout were the lower value of the dollar, which aided overseas sales; elimination of mar- ginal operations; and the concessions employees accepted in the 1986 settlements. One settlement was at Lukens Steel Co, in Coatesville, PA. The 3-year contract for the 1,400 workers provided for lump-sum payments of $1,000, $800, and $600, in the first, second, and third contract years. The second and third year payments are to be offset against any payout in those years under a new profit-sharing plan. According to the company, the 1989 payout already amounted to 89 cents per hour worked, based only on profits during the first half of 1989. In Detroit, McLouth Steel Products Corp. became the second major employee-owned firm in the steel industry (the first was Weirton Steel Corp. located in West Virginia). The purchase of McLouth under an employee stock ownership plan began in 1987 when the company re- ported an $85 million loss over a 17-month period and was on the verge of declaring bankruptcy. Under the pur- chase agreement, the employees own 87 percent of the stock. To finance the stock purchase, the employees in 1987 agreed to a 5-year labor contract that included a 10- percent pay cut. The union members will not have a majority on the corporate board of directors because of conditions im- posed by creditors who forgave loans in exchange for preferred stock. One board member selected by the unions is former United Auto Workers president Douglas Fraser, who served on Chrysler's board from 1980 to 1984. In other action resulting from the steel industry's ear- lier problems, the Federal Pension Benefit Guarantee Corp. again assumed the obligations of three pension G-5 MONTHLY LABOR REVIEW January 1989 * Labor-Maniagement Relations in 1988 plans of LTV Steel Corp. The reassumption was ordered by a Federal judge, who indicated that it would be possi- ble to return the obligation to L1V if "severely defective" administrative procedures in the Pension Benefit Guaran- tee Corp. were corrected. The Federal agency had first assumed the obligations of the plans early in 1987, follow- ing the parent LTV Corp.'s move to reorganize under Chapter 11 of the bankruptcy act. A bankruptcy judge approved Kaiser Steel Corp.'s plan for emerging from protection of Chapter 11 of the bank- ruptcy act. The settlement included several thousand former employees of the company who were owed insur- ance and pension benefits. A U.S. district court approved a settlement providing for $14.8 million to be allocated among 2,700 people em- ployed by the Wisconsin Steel Works prior to its 1977 shutdown. The money will be paid by Navistar Interna- tional Transportation Corp., which was International Harvester Co. at the time of the closing. The case was initiated by the Pension Benefit Guarantee Corp. and other creditors who claimed that International Harvester arranged a sham sale of the Chicago property prior to the closing to evade unfunded pension obligations. Aluminum. The aluminum industry was thriving in 1988, in contrast with 1985 and 1986, when worldwide overcapacity led to severe price cutting and forced the United Steelworkers and the Aluminum, Brick and Glass Workers to accept compensation cuts in settlements with the major domestic producers. The sales resurgence, which began after the unions' 1986 settlements with Alu- minum Company of America and Reynolds Metals Co., resulted from the decline in the value of the dollar, the closing of marginal operations, moderation in the rise in energy costs, and increased demand from industries such as aircraft manufacturing. The improved financial condition of the industry was apparent in the settlement between Kaiser Aluminum and Chemical Corp. and the Steelworkers. The 29-month set- tlement, covering 5,400 employees at facilities in five States, featured a new profit-sharing plan providing for quarterly distributions linked to the Midwest price for aluminum. (At the current price, the distribution would be $2 an hour, according to Kaiser.) The settlement also provided for a 50-cent-an-hour wage increase in lieu of a $5 a share dividend workers were scheduled to receive under a stock distribution plan adopted in the 1985 ac- cord, but terminated by the new accord; a $1,000 contract signing bonus; and restoration of COLA'S and three paid holidays, which had been dropped in 1985. After the amicable settlement at Kaiser, the Aluminum Company of America and Reynolds Metals Co. began bargaining with the Steelworkers and the Aluminum Brick and Glass Workers. (The unions each represent some workers at both companies and they coordinate their bargaining efforts, resulting in similar settlements.) After a breakoff of negotiations, the parties settled on 43- month contracts, subject to employee ratification. The new contracts would supersede contracts scheduled to expire on May 31, 1989. The Steelworkers and Alcan Aluminum Ltd.'s Sebree, KY, smelter also bargained early, without settling. The union sought restoration of a compensation cut of more than $2 an hour, while Alcan offered a $1,000 lump-sum payment if the workers extended the existing terms by I year, to October 1990. Copper. Workers at some of the major copper mining and processing companies, who settled for compensation cuts in 1986 when the industry was beset by overcapacity and resulting price cuts, have benefited from increasing profit-sharing distributions since then. The turnaround has resulted from improved production methods, higher demand, the reduced value of the dollar, and adverse de- velopments at some foreign producers. Under the sharing formula adopted at Magma Copper Co. in 1986 in return for the compensation cuts, quarterly distributions were calculated at 60 cents for each hour worked in the third quarter of 1987, and at $5, $5.50 (the maximum under the formula), $5.25, and $5 in the following quarters. At Inspiration Resources, where the maximum is $7.10, rates for the same quarters were 82 cents, $5.09, $5.09, $3.97, and $4.01. Inspiration's assets were purchased by Cyprus Minerals Co., which did not continue the profit- sharing plan. Cyprus hired some of the 750 Inspiration employees, but indicated that it planned to operate on a nonunion basis. The Steelworkers and other unions that had represented the workers announced plans for an orga- nizing drive at Cyprus. Prior to the sale, the unions had negotiated severance pay, early retirement, and other bene- fits for employees affected by the sale. ASARCO employees did not receive payouts because un- like the other 1986 settlements, theirs provided for second- and third-year wage increases that restored part of the first-year cut in compensation. At Kennecott Corp., the employees accepted a compensation cut in return for a $1,000 lump-sum payment and a company pledge to com- plete the reopening and modernization of its Bingham Canyon, UT, mine. Rubber There was a round of pattern collective bargaining ettle- ments in the tire industry in 1988, but it was over-sha- dowed by manufacturers' efforts to find their niche in-or out-of this fast-changing industry. For companies staying in, the goal was "to be a global player" which is the only way "to compete effectively in the industry today," accord- ing to the chairman of Goodyear Tire and Rubber Co. Reasons cited for the increasing concentration of produc- tion in a few firms include the consumer's view of tires as a G-6 commodity distinguishable only by price; slow growth in demand because of increasing sales of longer wearing radial tires, coupled with lighter vehicles; the high cost of switch. ing to production of radial tires; the increasing "global. ization" of automobile production, leading to demands for nearby tire sources; and the need to counteract world fluc- tuations in the value of money by locating plants in intended markets. The year started off with B.F. Goodrich announcing that it was leaving the tire business by selling its half interest in Uniroyal Goodrich Tire Co. to an investment group that was its equal partner in the venture. In February, new management of the Uniroyal Good- rich Tire Co. settled on aspects of a new contract with the United Rubber Worker ahead of Goodyear and Fire- stone Tire and Rubber Co., where current agreements Also were scheduled to expire. Terms of the accord included a ban on closing of three plants, with the fate of the fourth plant, in Eau Claire, WI, to be decided later (the company later agreed to keep the plant open for at last 3 yeas in exchange for wae cuts and State aid); a 1-year moratorium on quarterly COLA's, with adjustments to be made to the extent of any rise in the Consumer Price Index in exoem of 4.5 percent; and a provWion for the employees to pin equity in the com- pany. Other terms were to be settled later, bued on the outcome of negotiations at Firestone and Goodyear. Also dur the year, Bridpgstone Corp of lapan - quWred 75 percent of Firestone for $2.6 billion, and Pirelli SFPA. of Italy Agreed to buy Amstrong Tire Co. from Armtek Corp. for S190 million. At midyear, Goodyear employees settled, after reject- ing an earlier propoul becaus It did not contain a guanteed wage incrase. The accepted 3-year contract provided an immediate 25-cent-an-hour pay increase that will be offset apinst pouible quarterly pay increases un- der the COLA clause, which wu continued. Other pro- visions for the 15,000 Rubber Workers included a provi- sion for reopening wae negotiations-with no right to strike-in March 1990; Increaed pension rates; and a move to encourage employees to shift into a comprehen- sive medical care progrm by improving the uvinga plan available to participants. (Participants in other medical programs are Also eligible for the avings plan but the company does not contribute on their behalf.) Later, 4,700 Firestone employees uttled on similar terms after a 1-week work stoppage, and Uniroyal em- ployees settled their remaining issue. In a settlement that came 3i months before the scheduled expiradon of the current agreement, Rubber Workers Local 665 and General Tire's Mayville, KY, plant agreed to terms similar to those at Goodyear. Union officials said they set- tled early to encourage Continental Gummi-Werke AO of West Germany to carry out the local $120 million portion of a $470 million overhaul of seven North American plants. The West German firm, which had purchased General Tire from GenCorp in 1987, announced plans to join with two Japanese firms in building a tire plant in Mount Vernon, IL. Armstrong Tire and Rubber Co. and the union settled for 1,700 workers at four plants. Terms were similar to those at Goodyur, except that employees at the Hanford, TN, and Des Moines, IA, plants received advance COLA'S of 74 cents and 60 cents, respectively (instead of 25 cents), to help restore 1987 wage cuts. Bituminous coal Going into their 1988 negotiations, the soft coal pro- ducers and the United Mine Workers faced a continuing decline in coal prices and in the portion of the Nation's output from their mines. In 1987, their share of produc- don was about one-third, compared with nearly one-half a dadec earlier. Thee declines, manifested in the layoff of 45,000 employee since the 1984 settlement and the clos- ing since 1980 of 40 percent of the 5,000 total bituminous coal mines in the United States, defined the objectives for both partis: the Mine Worke would pres for contract changs to protect exisdng jobs and open jobs to workers on layoff, and the Bituminous Coal Operators Associa- tion, the lead bArpining group, would pres for moderate compenstion increas. Both parties apparently suc- ceedd, as they recorded their second succesive peaceful settlement. . The union even broke its tradition of "no contract, no work" by keeping workers on the job between the tenta- tive sttlement And the countin of the employee ballots 3 days later. The contract runs for 5 years, a departure from the 40- month agreements negotiated in 1984 and 1981, and the usual 3-year areements of earlier years. It gives laid-off employees the right to the firt 3 of every 5 jobs available at any nonunion operadons of companies that have opera tions covered by the contract; the right to all jobs in operations that their employer lease out to other compa- nies; the right to use their recall rights at all of their employer's operations, unlike the previous provision which limited recall to the Mine Workers district in which the lost job was located or in one condguous dis- trict; and new employer-financed training and education programs. Wage increases totaled $1.05 an hour, compared with $1.40 an hour under the 1984 contract and $3.60 under the 1981 contract. The 1988 contract is subject to reopen- ing on wages and pensions after the third and fourth years. The accord also provided for improvements in pen- sions, insurance, and clothing allowance benefits, but the employers benefited from cessation of their S1.11 a ton payment into one of the retirement funds, which had be- come fully-funded in 1987. G-7 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 In the wake of the settlement, the Mine Workers settled with 200 companies that had signed interim agreements requiring them to accept the Bituminous Coal Operators Association terms in return for exemption from any work stoppage. An exception was the Pittston Coal Co., which contended that its financial condition did not permit it to accept the Bituminous Coal Operators Association terms. In late November, the 2,000 workers were still on the job and there were no indications of an imminent settlement. Pittston and some other producers of metallurgical coal were among a number of firms that withdrew from the Association in recent years, reducing the Association's membership to about 15 at the time of the 1988 settle- ment, from about 130 in 1981. Some metallurgical coal firms contended that they were underrepresented in the Association, relative to producers of steam coal. Forest products Developments in forest products were dominated by two events: the termination of the United Paperworkers strike against International Paper Co. and a series of set- tlements in the West Coast lumber industry. Although the lumber accords covered many more workers, the Paper- workers' decision to end its 16-month strike against the three International Paper plants (located in Jay, ME; Lock Haven, PA; and De Pere, wi) may have a much greater and longer lasting impact on labor-management relations in forest products as well as in other industries. The Paperworkers' unilateral offer to return to work at International Paper could only be viewed as a defeat for the union, as the company had continued to operate dur- ing the strike with replacement workers and some non- striking union members, and actually increased profits. International Paper welcomed the workers' offer to re- turn to work, but reaffirmed its promise to retain the replacement workers when the strike ended. This meant that the strikers would be recalled, in seniority order, only when job openings occurred through attrition. Other factors that apparently contributed to the return- to-work decision were the drain on the union's finances for strike payments to the participants and the failure of employees at other company plants to join the strike when their contracts expired. Instead, they continued working under contract extensions, apparently because they expected International Paper to also fill their jobs if they struck. The confrontation began in 1987, when 1,000 Paper- workers members at International Paper's Mobile, AL, mill refused to accept elimination of premium pay for Sunday work, broadening of the duties in job classifica- tions, and other changes in work rules the company said were needed to improve its competitive position. (Em- ployees at six other mills had agreed to the changes.) International Paper then locked them out, began hiring a new crew, and implemented the cost-reducing changes. The company then attempted to negotiate the same changes at Jay, Lock Haven, and DePere, triggering the strike. After the union made the return-to-work offer, bargain- ing was restarted at Mobile and the parties agreed on a 6-year contract, retroactive to February 1, 1987. Unlike the strikers, all of the workers were immediately recalled as required by law because they had been locked out. Although the cost-saving changes remained in effect, the workers did win improvements under their new con- tract, including four 2-percent wage increases, one 30- cent-an-hour increase, a $1,000 lump-sum payment in February 1990, increases in shift differential and company financing of health insurance, and a new savings plan permitting employees to invest up to 4 percent of their earnings, with the company matching half the amount. In the West Coast lumber settlements for nearly 40,000 workers, the Woodworkers union and the Western Con- ference of Industrial Workers (a unit of the Carpenters) regained part of the $1.25 to $1.65 an hour cut in compen- sation they had accepted in 1986 when employers were generally experiencing financial problems. The settle- ments did not come easy, as up to 9,000 workers were involved in work stoppages at one time. The unions hoped to use a 4-year settlement with Bohe- mia Inc. as a pattern-setter, but the other companies viewed the terms as too costly. A settlement with Wiam- ette Industries led to other settlements, which varied somewhat in provisions and duration. At Willamette, where plywood workers averaged $9.77 an hour and sawmill workers averaged $9.95, there was an immediate $1,400 lump-sum payment, followed by a 3- percent wage increase in 1989 and 4-percent increases in 1990 and 1991. Other provisions of the 4-year contract included restoration of two paid holidays given up in 1986; an additional 40 hours of vacation pay for employ- ees with at least 10 years of service, and a $2.50 increase in the pension rate, to $22 a month for each year of credited service. Companies with 4-year contracts which followed the Willamette lead were Simpson Timber Co. and Geor- gia-Pacific Corp. At some companies, contract terms were for 3 years, with benefit changes similar to those at Willamette. One company was Boise Cascade, where the $1,400 lump sum was accompanied by a 25-cent-an-hour wage increase, fol- lowed by 3-percent increases in 1989 and 1990. Terms for 6,300 Weyerhaeuser employees were similar to the terms at Willamette, except that the lump-sum payment could exceed $1,400, depending on unit output. Unlike at the other companies, employees at Weyerhaeu- ser are covered by a profit-sharing plan that was improved in 1988. The plan was established in 1986 in return for employees accepting a larger compensation cut ($3 an hour) than employees of the other companies. G-8 Shipbuilding Conditions in the Nation's private shipbuilding industry were unchanged from those in recent years, as employers and employees struggled to adapt to intense competition from lower cost foreign shipyards, to increased pressure from the government to cut their bids on Navy ships, and to the shifting of some Navy work to government ship- yards. The inevitable result was increased competition among the private yards for the available work, leading to closedowns of weaker firms, labor-management conflicts stemming from employer demands that employees settle for modest increases or, in some cases, freezes or cuts in compensation to improve the employer's competitive posi- tion. The condition of the industry is illustrated by the fact that the last ocean-going commercial vessel on order from a private shipyard was completed in November 1987. Em- ployment in private shipyards has dropped to 126,000 in 1987 from 178,000 in 1980, according to the Bureau of Labor Statistics. There also was an effect on the Marine and Shipbuilding Workers Union, the largest in the private segment of the industry, as a nearly 50-percent reduction in membership (to 13,000) since 1980 impelled it to merge into the Machinists union. The longest of the 1988 labor-management conflicts was at General Dynamics Corp's Electric Boat Division, where management called for the 10,000 workers to accept lump- sum payments in lieu of specified wage increases. Manage- ment said the change was needed to help reduce a claimed $1.24 an hour advantage in compensation costs held by Newport News (VA) Shipbuilding and Drydock Co., the winning bidder for several recent Navy submarine produc- tion contracts. The accord that ended the 3-month work stoppage at the Groton, cr, shipyard provided for lump-sum pay- ments in October 1988 and December 1989 equal to 5 percent and 4 percent, respectively, of the employee's hourly pay rate multiplied by 2,080. The 46-month con- tract, negotiated by a Metal Trades Council comprising 8 unions, also provided for a $600 payment in December 1989 and for a 3-percent wage increase in April 1991. There also were improvements in pension and insurance benefits, offset to some extent by increases in the employ- ees' share of health insurance costs. In another East Coast settlement, Bath (ME) Iron Works and the Marine and Shipbuilding Workers settled peacefully for 5,800 employees. An important provision of the 3-year contract was a shortening of the period lower tier employees must wait before attaining the same top pay rate as upper tier employees. (Under the prior contract, new employees started at $3 an hour below the top rate and progressed to the top rate in a $1 step on their first three hiring anniversaries.) The 1988 settlement pro- vided for an immediate $1 increase for lower tier workers, followed by $1 increases on anniversary dates. The pay disparity had become increasingly important because hiring in the last few years had resulted in lower tier employees accounting for up to about half the work force, creating morale problems that could have been partly responsible for financial losses Bath suffered in 1987. A definite factor in the losses was the company's shift into production of larger, more complex ships, which entailed major adaptations in facilities and procedures. Other provisions of the contract included 2.5-percent general wage increases in each year; a new job classifica- tion system with 14 top rates, replacing one with six rates; $100 bonus payments for every 2 months (formerly 6 months) of perfect attendance; and continuation of a drug testing program, subject to further talks on procedures. In another matter, Bath and the Occupational Safety and Health Administration (OSHA) compromised on the penalty for alleged safety violations at the shipyard. Un- der the settlement, Bath will pay a $650,000 fine and help finance a center for safety and health research and train- ing in Maine. Originally, OSHA had proposed a $4.1 million fine. In Middletown, RI, a 42 -month work stoppage (involv- ing 400 workers) at the Robert E. Derecktor Shipyard ended when members of Local 9057 of the Steelworkers accepted a 3-year agreement. The last major issue- whether replacement workers should be retained-was resolved by placing them in jobs not in the bargaining unit. The contract also provided for adoption of a profit- sharing plan, with provisions to be worked out by the bargainers, assisted by a neutral person. If an agreement is not reached, the employees will receive a 50-cent-an-hour wage increase. The settlement retained a provision for layoffs to be in seniority order. The company had pressed for a wage freeze and for the right to lay off workers on the basis of their performance. At the time of settlement, the shipyard held contracts to build cutter ships for the Coast Guard and tugboats for the Army. On the West Coast, a settlement between West State Inc. of Portland, OR, and a Metal Trades Council gave the company the right to hire and lay off employees without regard for seniority. The company said that the new pro- cedures, combined with new work rules more flexible than at other firms in the area, gave it an advantage in bidding on ship repair jobs. The 1-year contract, covering up to 800 employees, depending on the amount of work available, also provided for a $1 an hour increase in wages, to $13.60, the indus- try's highest on the West Coast. The benefit package at West State totals $4.41 an hour. In Seattle, WA, WFI Industries emerged from 2 years of bankruptcy proceedings under the ownership of its 400 employees, who renamed it Unimar International Inc. The purchase, through an employee stock ownership G-9 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 plan, will enable the workers to "control our own des- tiny" according to one leader of the 12-union Metal Trades Council at the shipyard. At its peak, WFI Industries employed 1,500 people in shipbuilding and related operations, but was caught in the industry downturn that cost 7,000 union jobs in the Puget Sound area since 1982. In a settlement in California that ended a 3-week work stoppage, employees of National Steel and Shipbuilding Co. of San Diego accepted a cut in compensation. Ac- cording to the company, the cut was necessary to enable it to compete with nonunion Avondale Shipyards in New Orleans, LA, for Navy contracts. Under the new 4-year contract, top rates are $11.40 an hour for current employees and $9.40 for new hires, com- pared with $10.80 and $12.80 under the prior contract. All employees will receive 25-cent increases in October of 1990 and 1991. Reported rates at Avondale were $5.18 for new workers, rising to a top rate of $9.02. Other changes at National Steel included alteration of the COLA clause, with possible quarterly adjustments to be made only during 1990 and the first half of 1991; increased normal pension rates and elimination of a bene- fit reduction factor that had applied when employees retired prior to age 65; loss of 3 of the 13 paid holidays; and a new requirement that single employees begin con- tributing $10 a month toward health insurance premiums and those with families begin contributing $30. Seven unions were involved in the settlements. In Tampa, FL, American Ship Building Co. and a Metal Trades Council settled in at midyear, ending a 17-month period during which the parties had operated under an extension of the prior contract. The company said it gained important improvements in production standards and work rules in the 3-year contract, which automati- cally extends to 4 years if the company wins a large multiyear production contract. Gains negotiated by the eight unions included annual lump-sum payments in the first 2 years equal to 2 percent of the employee's annual earnings, and a cost-of-living pay raise up to 3 percent in the third year. Also in Florida, Jacksonville Shipyards, Inc., and the Boilermakers settled on a 3-year contract that called for a 41-cent-an-hour immediate cut in wage rates. The 1,100 workers, who also accepted the loss of 2 of 11 paid holi- days, will receive a lump-sum payment in August 1989 calculated at 2 percent of their earnings during the pre- ceding 12 months, followed by a payment in August 1990 calculated at a 3-percent rate. In Mobile, AL, "meeting the competition" was the cen- tral issue in a dispute between Alabama Dry Dock and Shipbuilding Corp. and Local 18 of the Marine and Ship- building Workers. According to a company represent- ative, wage and benefit costs at the shipyard averaged $16 an hour, compared with $10 at its competitors. After ne- gotiating with the union and assessing the cost of major repairs in its drydock, the company closed the shipyard in October. About 600 workers were affected. Other industries Farm and construction equipment. Going into 1988 bar- gaining with the Auto Workers, Deere & Co. and Cater- pillar, Inc., were operating at profits, in contrast with the losses they incurred in the early 1980's. The losses led to a major revamping of the farm and construction equipment industry. Tenneco bought the farm equipment business of International Harvester Co. (now renamed Navistar In- ternational Transportation Corp. and primarily engaged in manufacturing trucks) and combined it with its J.L. Case unit, and Allis-Chalmers Corp., another old-line manufacturer of farm equipment, is in bankruptcy. Because of this troubled past and the fact that Deere and Caterpillar still had employees on laybff, the Auto Workers pressed for, and won, improvements in the job guarantees adopted in their last settlements. The leadoff settlement was at Deere. It provided for a Protected Employee Group Program that will protect em- ployees against layoff for any reason except market- related declines in sales volume. Within the group of 13,600 protected employees, 8,900 (90 percent of the work force under the previous contract) are safe from layoffs for virtually any reason, including declines in sales. Deere's maximum obligation for protecting against layoffs resulting from sales declines was set at $44 million during the contract term. There is no limit on Deere's obligation to protect employees against layoffs for other reasons. Under the prior contract, there was a $14.4 mil- lion limit. The contract also provided for a 44-cent-an-hour (about 3 percent) immediate wage increase-the employ- ees' first since 1981, except for adjustments under the COLA clause, which was continued; lump-sum payments in the second and third years equal to 3 percent of each employee's "qualifying earnings" during the preceding 12 months; a moratorium on plant closings; and a new provi- sion requiring the company to place in an Excess Over- time Account one-third of an hour's pay for each hour of overtime worked above 5 percent of straight-time hours during specified periods, with the use of the fund to be determined jointly; and a guarantee that the average 1988 profit-sharing payout will be at least $400. The Caterpillar settlement provided for security and wage and benefit provisions similar to those in the Deere settlement. About 17,500 workers were covered. Electrical equipment. In a change from past practice, General Electric Co. (GE) and Westinghouse Electric Corp. settled on different terms with members of a coali- tion of 13 unions. Traditionally, GE had settled first and then Westinghouse settled on essentially the same terms. G-10 Well before the start of the 1988 negotiations, Westing- house said that this practice was not appropriate because the companies no longer competed with each other in many product lines. Despite the differences in the result- ing settlements, the cost of the 3-year contracts was "roughly equivalent," according to the Electronic Work- ers, one of the unions that settled with both companies. One area of concern for employees at both companies was job security, reflecting cuts in operations and plant closings in recent years. At GE, 12 unions represented 67,000 employees in 1988, compared with 100,000 em- ployees in 1982. At Westinghouse, six unions represented 13,000 workers in 1988, compared with 30,000 in 1982. Perhaps the major change in the area of job security was at Westinghouse, where the six unions gained a suc- cessor clause requiring any buyer of a company plant to recognize the existing union, and to provide comparable wages and benefits. Settlements at both GE and Westing- house also provided for improved pensions for employees affected by cutbacks in operations (and increased pen- sions for normal retirement): longer pay rate retention for employees downgraded because of layoffs; relocation al- lowances; increased retraining allowances; and broader geographic preferential hiring rights for employees dis- placed by plant closings and relocations of product lines. (Some of these changes were identical at both companies; others were not.) There also were differences in pay provisions. At GE, employees won a 2.5-percent immediate wage increase, 1.5 percent increases in June of 1989 and 1990, and cash payments of$165 in July 1988 and $900 in June 1989. The Westinghouse settlement called for 3-percent wage in- creases in August of 1989 and 1990, and lump-sum pay- ments in September of 1988 and 1989 equal to 6 percent and 3 percent, respectively, of the employee's hourly pay rate, multiplied by the 2,080 expected work hours in the coming 12 months. According to the unions, the esti- mated values of the payments were $1,566 and $792. Both settlements continued their COLA formula, which provides for possible semiannual adjustments of 1-cent- an-hour for each 0.15-percent movement in the Consumer Price Index. The unions valued this at 75 cents an hour, based on their forecast of the movement of the Consumer Price Index. Petroleum refining. Prior to the December 1987 start of the Oil, Chemical and Atomic Workers bargaining with petroleum and petrochemical firms, the union set improv- ing job security as its primary goal. The union, which had lost 10,000 members since 1981, also joined with the United Mine Workers and the Energy and Chemical Workers of Canada to exchange information before and during the upcoming talks for renewal of their primary labor contracts. This was done to strengthen them in bar- gaining with companies that increasingly operate across national boundaries and in more than one field of energy. Since mid-1987, the Oil, Chemical and Atomic Workers and the United Mine Workers had been negotiating toward a merger to attain a single voice in dealing with domestic energy firms. However, after the Oil, Chemical and Atomic Workers' leadoff settlement with American Oil Co., the union's board of directors rejected the merger idea because there were "too many unresolved details." The Mine Workers attributed the decision to board members' con- cern over differences in the unions' dues structures. In the Amoco settlement, which set a pattern for 60 other companies with more than 300 covered facilities, the Oil, Chemical and Atomic Workers failed to win im- provements in job security. Economic provisions of the 2-year contract included a $900 lump-sum payment upon ratification, a 30-cent-an-hour wage increase on February 1, and a 3-percent increase in February 1989, that would bring the average wage rate for refinery workers to $15.18 an hour. The companies also agreed to increase their fi- nancing of family health insurance coverage by $10 a month immediately and by an additional $2 in the second contract year. Financing of coverage for single employees was increased by $4 in both years. The settlements were not preceded by a general work stoppage, but there were a few stoppages over local issues. The longest was 22 weeks. It involved 350 employees at B.P. Oil Co.'s refinery in Marcus Hook, PA. Apparel The Ladies Garment Workers and the Cloth- ing and Textile Workers, the two dominant unions in apparel manufacturing, negotiated contracts establishing parental leave provisions. The unions have strongly backed efforts to legislate parental leave provisions, and had first gained such leave in 1987 settlements. Union officials said the provisions for up to 6 months of unpaid leave with a job-return guarantee are vital to the indus- try's employees, many of whom are members of two- earner families, and 85 percent of whom are women. Other terms of the Ladies Garment Workers' settlements with women's outerwear manufacturers included 4-percent wage increases in each of the 3 contract years and increased employer financing of benefits. Prior average hourly wages, which varied by type of garment, included $7.50 for coat- makers. Other terms of the Clothing and Textile Workers settle- ments for more than 40,000 employees in the cotton garment industry, comprising men's shirts, pants, and nightwear, included 40 cents an hour in wage increases, which will bring the average wage to about $6.20 hour. The union said that it insisted on the 18-month term of the agreement to permit it to quickly press for implemen- tation of the findings of new joint committees on "issues of national concern relating to the industry" and on the feasibility of providing child care facilities. G-11 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 Aerospace. Collective bargaining activity in the aero- space industry was limited because most agreements expire in 1989 or 1990. At General Dynamics Corp's Pomona and Valley Sys- tems divisions in California, 3,200 employees accepted lump-sum payments, despite the recommendation of lead- ers of their Machinists local that they hold out for specified wage increases. The lump-sums were $2,000 in the first year of the 3-year contract and $1,000 in the second and third years. The contract also provided for improvements in benefits, including a 28-percent increase in pension rates. * At Texton's Lycoming aircraft engine plant in Strat- ford, cr, more than 2,000 workers were covered by a 3-year contract that provided for an immediate $500 "sign-up" payment, followed by payments equal to 5 percent and 4.5 percent of employee's earnings in 1988 and 1989, respectively, and a 3-percent wage increase in 1990. The accord, which ended a 7-week work stop- page, also provided for improvements in some benefits. * At LTV Corp.'s Aircraft Products Group and Missiles Division in Grand Praire, Tx, a settlement provided for 3-percent wage increases effective inmediately and in June 1991, and for lump-sum payments in September of 1988, 1989, and 1990 equal to 3, 5, and 5 percent, respectively, of employee earnings during the preceding 12 months. The 44-month contract also provided for improvements in insurance and other benefits. Longshore. On the Atlantic and Gulf coasts, the major problem facing the International Longshoremen's Associ- ation (ILA) and stevedoring firms was the continuing possibility that their "50-mile container rule" might be invalidated. The rule, adopted in 1959, specifies that packing and unpacking of ship cargo containers within 50 miles of a port where the ILA holds representation rights must be performed by members of the union. In 1987, the Federal Maritime Commission ruled that this provision discriminated against some shippers not party to the ILA contract, and ordered it removed from all tariffs. In mid-1988, the U.S. Court of Appeals for the District of Columbia upheld the Federal Maritime Commission's ruling. Later in the year, the court stayed its decision pending a review by the Supreme Court. The initial invalidation of the container rule enabled the ILA to reopen its current contracts with the six ship- pers associations, but the parties could not agree on how to deal with the threat to the rule prior to an October I contract deadline, which meant that the current contracts will continue unchanged until they expire on September 30, 1989. Competition from nonunion stevedore firms, which has become an increasing problem for the iLA, particularly at South Atlantic and Gulf coast ports, triggered demonstra- tions by union members at several ports, including Pensacola and Port Canaveral, FL. The ILA did increase its strength in one area, as it signed a 5-year contract with Crowley Maritime Corp., which had long refused to employ ILA members. The accord allows Crowley's ships to continue to call at non- ILA ports but also permits them to begin calling at ILA ports. Railroad& National rail negotiations began in April but the carriers, generally represented by the National Rail- way Labor Conference, and unions did not press to settle by June 30, the earliest date contract amendments could have been effective under provisions of the Railway Labor Act, which regulates labor-management relations in the industry. Instead, bargaining carried over into 1989, fol- lowing a long-standing tradition of protracted negotia- tions. Clearly, the major issue in the talks is jobs, with management seeking to improve its ability to compete with other forms of transportation by cutting jobs it views as unnecessary. On the other side of the table, unions defended the need for some of the jobs and sought to protect the livelihoods of their members. At the Chicago and North Western Transportation Co., a long-line carrier owned by its employees, a dispute that began in 1987 over company plans to eliminate brakemen's jobs on freight trains was finally resolved by an act of the Congress requiring the parties to accept the settlement recommendations made earlier in the year by a presidential board. Originally the carrier planned to eliminate all 1,211 of the brakemen jobs, but the board said Chicago and Northwestern should cut the jobs from the train runs where track switching is not required and should cut one of the two jobs on runs where switching is required. This action would end 689 jobs, with the possibility of more, because the board also recommended that the need for even one brakeman should be determined by arbitrators on a individual-run basis. The United Transportation Union conceded that two brakemen were not needed, saying that it had agreed with every major railroad in the country except the Chicago and Northwestern to reduce the crew to one brakeman through attrition. In a settlement with the Grand Trunk Western Rail- road, the United Transportation Union agreed to operate with one conductor on trains of up to 35 cars, and with one conductor and one brakeman on longer trains. Previ- ously, most trains carried one conductor and two brake- men. Union officials said the change would cost 170 to 200 jobs, but were hoping that early retirement and buy- out provisions would limit layoffs. The new contract did not provide for a wage increase, but did establish a 401(k) savings plan and a productivity pool giving employees a share of any labor-cost savings. G-12 The Grand Trunk operates about 1,000 miles of track in Michigan, Ohio, Indiana, and Illinois. It also negoti- ated cost-reducing settlements with 13 other unions; overall, the 14 settlements covered 3,600 workers. The railroad earned $3.4 million in 1987, after losing $16.4 million in 1986. About, 230 employees of the Union Pacific Railroad's repair shops began returning to work under provisions of a 1987 settlement between the carrier and the Railway Carmen Division of the Transportation.Communication Union. Under the accord, the returnees were paid $10.40 an hour, compared with the $13.76 rate for employees who were not laid off. The union said it agreed to the lower pay tier to get the workers back on the job, noting that some had been on layoff for as long as 5 years. The settlement was based on the recommendations of a presidential emergency board issued at the time of the union's last national settlement. In its report, the board favored two-tier compensation plans in cases where rail- roads agreed to cut the amount of work they contract out. Later, the railroad announced it would close one of the shops, in Omaha, NE, by the end of 1989. Under the sever- ance settlement negotiated by the Carmen, the 45 affected employees will receive payments of up to $40,000. Nearly 200 members of other unions will receive payments of vary- ing amounts. Union affairs Conditions were unchanged from preceding years for unions, as they sought to build-or rebuild-their strength in dealing with employers as well as the public's perception of their place in society and the economy. These efforts may have been hampered by government legal action against leaders of the Teamsters union, the unsuccessful strike by the Paperworkers against Interna- tional Paper Co., and the continuing tendency to ascribe to labor part of the blame for domestic manufacturers difficulties in competing with foreign producers in some industries. In a heartening note for labor, a Gallup poll during the year showed that 61 percent of the population approved of unions, up from 55 percent in 1981. One new initiative by the AFL-CIO to give the public a better perception of unions and aid in organizing workers their goals was a $12 million, 2-year "Union Yes" adver- tising campaign, featuring television and movie stars and rank-and-file union members. The AFL-CIO also reported progress in its 2-year-old campaign to strengthen unions' organizing and bargaining tactics and provide services and benefits to union members that could later be ex- tended to others, thus educating them about unions and possibly inducing them to join unions. Mergers and affiliations. Following the belief that there is strength in numbers, union leaders accelerated merger efforts in 1988, although not always successfully: * The Marine and Shipbuilding Workers merged into the Machinists, becoming District 54. * The 2,400 member Die Sinkers Conference merged into the Machinists. * The Glass, Pottery and Plastics Workers International Union merged with the International Molders' and Al- lied Workers' Union, becoming the Glass, Molders, Pottery, Plastics and Allied Workers. * Marine Engineers Beneficial Association's District I merged with the National Maritime Union to form Dis- trict No. I-MEBA/NMc Division. * In New York City, the Doctors Council and the New York State Federation of Physicians and Dentists merged to form the American Federation of Doctors. * The National Union of Hospital and Health Care Em- ployees merged with the Service Employees, subject to membership approval. * The 30,000 member California Federation of Teachers (a unit of the American Federation of Teachers) signed a 2-year, mutual-aid, no-raid agreement with the Cali- fornia School Employees Association, which represents 95,000 school support employees. * The Oil, Chemical and Atomic Workers' board of di- rector voted not to complete a planned merger with the Mine Workers, which had approved the proposal. The Mine Workers then established committees to explore merger with other unions and reaffiliation with the AFL-CIO. * The delegates to the convention of the 12-member Side- rographers union considered merging with an en- graving and plate printing union, but decided to delay the move at least until the next convention. * Merger discussions were initiated between the United Food and Commercial Workers and the Retail Whole- sale, and Department Store Union. * The Brother of Locomotive Engineers Affiliated with the AFL-CIO, after 125 years as an independent union. * The International Longshoremen's and Warehouse- men's Union reaffiliated with the AFL-CIO. Leadership changes There also were changes involving union leaders: * Jackie Presser, president of the Teamsters, died and was succeeded by William J. McCarthy. * Frank Droziak, president of the Seafarers, died and was succeeded by Michael Sacco. * Patrick J. Campbell retired as president of the Carpen- ters union and was succeeded by Sigurd Lucassen. * United Auto Workers secretary treasurer Raymond E. Majerus died and was succeeded by William Casstev- ens, who had headed the union's farm and construction equipment and organizing departments. * Alfred K. Whitehead defeated incumbent John A. Gannon for the presidency of the Firefighters; White- G-13 MONTHLY LABOR REVIEW January 1989 * Labor-Management Relations in 1988 head had been the union's secretary-treasurer since 1982. * John H. Sturdivant defeated incumbent Kenneth T. Blaylock for the presidency of the American Federation of Government Employees; Sturdivant had been execu- tive vice president for 6 years preceding the election. * George J. Kourpias was selected by the Machinists ex- ecutive council to be the union's "official candidate" to succeed William W. Winpisinger as president. Other candidates can be nominated prior to the April 1989 election, but the council action apparently gave Kour- pias the favorite's role. Other developments Federal employees. The 1.4 million Federal white-collar employees received a 2-percent salary increase in January 1988. Under the salary adjustment procedure in the Fed- eral Pay Comparability Act of 1970, the President's Pay Agent (a triad consisting of the Secretary of Labor, and the directors of the Office of Management and Budget and the Office of Personnel Management) reported in 1987 that an average 23.74-percent pay increase was nec- essary to bring white-collar pay up to the level of com- parable jobs in private industry. This was based on the results of the annual National Survey of Professional, Technical and Clerical Pay conducted by the Bureau of Labor Statistics. Any change would normally have been effective in October 1987. President Ronald Reagan, how- ever, proposed an alternate 2-percent increase for January 1988. Under the Act, as interpreted by the Supreme Court, such alternate proposals by the President stand unless vetoed by the Congress. If this had occurred, the President would presumably have been obligated to im- plement the 23.74-percent increase in October 1987. The 2 million military personnel also received the equivalent of a 2-percent increase in January 1988 under laws linking their pay levels to those for Federal white- collar employees. About 456,000 trades workers received an increase of up to 2 percent during the fiscal year ending September 30, 1988. Their pay is raised at various times during a year, based on the results of local surveys of wages for similar jobs. However, their potential increase is "capped" at the same percentage amount as for the white-collar workers. The salary increase did not apply to members of the Congress, Federal judges, and executive officials and mili- tary officers earning more than $72,500. Later in 1988, the Pay Agent presented to the President its finding on a salary increase that normally would be effective in October 1988. The increase, based on the Bu- reau's 1988 survey, was an average 26.23 percent. How- ever, President Reagan proposed an alternate 4.1-percent increase in January 1989. This matched the increase that the Congress had endorsed prior to the President's deci- sion. This increase did not apply to members of the Con- gress, Federal judges, and highest ranking Government officials, but it did apply to the 7,000 members of the Senior Executive Service who direct the career civil ser- vice. Neither pay increase applied to employees of the U.S. Postal Service because their pay is determined by collec- tive bargaining. Their current contracts, negotiated in late 1987 and early 1988, specified wage increases of $250 a year in July 1988 and January 1989 and cost-of-living adjustments of $208 in May 1988 and $520 in November 1988. President Reagan signed a bill extending for 5 years a leave-transfer plan that had been scheduled to expire Sep- tember 30. The plan allows employees to donate up to half their accrued annual (vacation) leave to specific employees in their agency or in another agency who have exhausted their annual leave because of a family emergency or have exhausted their sick and annual leave because of their own medical condition. The act also directs the Office of Personnel Manage- ment to establish a "leave bank" into which employees could contribute leave to be available for other workers with emergencies. Legal rulings During the year, the Supreme Court and other courts and boards issued a number of decisions af- fecting labor-management relations, collective bargaining, and employment. The Supreme Court held that: * Government has the right to bar families of strikers from receiving food stamps. * Nonunion employees in a collective bargaining unit may not be required to pay full agency shop fees (an amount equal to union dues) if part of the money is used for political, legislative, social, or labor organizing activity by the union. * Employers found to have discriminated against women regarding the amount of pension benefits can only be required to correct the inequity back to July 1983, when the court ruled that sex-based variations in pen- sion benefits are illegal. * Employees have the right to sue employers over a dis- missal, even if their labor contract contains a grievance procedure and other remedies, if State law permits such a suit. * Employers can be sued for personnel practices resulting in job discrimination, even if evidence of intent to dis- criminate is not available. * Creditors may garnishee benefits owed to workers un- der pension, insurance, and similar private plans regulated by the Federal Government. * Employers cannot be sued for not continuing to pay into benefit funds while negotiations are under way to replace an expired labor contract. G-14 * Federal employees outside the competitive civil service cannot sue the govemment if they are fired or sus- pended. In other decisions, rulings, and settlements: * The Department of Justice, in a reversal of a 1986 opinion, held that Federal agencies and federally as- sisted employers cannot fire or otherwise discriminate against employees beset by the acquired immune defi- ciency (AIDS) virus, including carriers not showing symptoms. * State Farm Insurance Co. paid a total of $1.3 million to three women who claimed the company practiced dis- crimination in hiring sales agents in California. Under the settlement, the company agreed to contact women who had applied for but were denied such jobs between 1974 and 1987, and to fill half of all vacant sales agents jobs in California during the next 10 years with women. * Settling 15-year-old charges that the police department discriminated against women and minorities in hiring and promotion, the city of Chicago and the U.S. De- partment of Justice established a $9.2 million back-pay fund and adjusted seniority for 729 women, blacks, and Hispanics. * Honda of America Manufacturing Inc. and the Equal Employment Opportunity Commission settled a 3'-year- old charge of sex and race discrimination at the company's Marysvile, OH, area plants. Under the settle- ment, Honda hired 370 blacks and women denied employment between 1983 and 1986 and paid them a total of $6 million, and agreed to (1) change its pro- motion procedures, (2) train all supervisors in fair em- ployment practices, and (3) begin a drive to recruit employees-particularly blacks-in Columbus, OH, which had been outside the company's hiring radius. Home work ban lifted. The Department of Labor ended a 45-year ban on home production of jewelry and four types of apparel and announced new rules regulating home work. The change is effective January 9, 1989. The Ladies Garment Workers union immediately an- nounced that it would challenge the decision in court. The five new products are gloves and mittens, embroi- deries, buttons and buckles, handkerchiefs, and some jewelry (knitted outerwear was freed from the ban in 1984). Participating employees are required to be ertified and the Labor Department will monitor the workers' wages and hours of work. 2 G-15 N e w s ~~~~~United States E ES O 6. L O 0 c c a 6 SX6-Nw N 011 L .C Sa CO ~ 4' Ino a an 0 .C.C E c a 0 * 4' 0 0 0 6 . . U L N N.: * C~~~~~~~~~~~~~ 4 0 C C CC 0 0 0 SNE 4.- LL L' O.-S _5 N L L N 6 4@ O c c: * - 556- LL C CS4)oInNN E'S 0#.-.- 1 * . .C I C 0 C S n *II 00 aU 1 L- 4 6 6 3 NL LL .0 so- - ,Cl g L (710u an L aa- . C 4' -.6 .- E. _ 0. U -IL .:~~~~~4 JY an NN NIC 4 O~~~~~~~~~4 L to 4 L4 3 L L-U L - C~~~~~~~~4- 4 -I 0 5011~~~~0 0 U' > ~ ~~~~~~~~ E _ 4- 3.> _ > 1-- 0 = z EX 00 U ^ L ? b 14 NNN N. >.> >.. . . .). . OO c . . . . . . ' 4. E0 E \ . . . ... 06 5 +4'6 H . . . * - -6L6 UO'* .0. 5. . . '4 S. . .. . O 110 . 0 . OU 4' . 5 H ,~~~~~~~ U .C . .S. O . " . * ~LU- - ' SOS c E * X1 * * ~1L1,- - VE O4 SO 5. 6 5 6.- \\\> ._% ~ ~ ~ ~ . * 0 L U L - .-n * I .0 . E S L S0 6 @ ~~~ Z . 40 . 4 nO G-26 able 7. Average wage and compensation (wage and beniefit costs) adjustments 1/for colloctive argaining settlemenits reached in 1987 and, by quarter, 1988. in per-cenit) I I 1 1987 1 1 988 1 I Measure I I I I I I IFull yearl I_Z/ I II2/ I III2/ I IV3/ I Full I I I I I - I year3/ I I I I I I - lage adjustments in settlements coveringl 1,000 workers or more: First year4/ All inidustries .......... ........ 2.2 Contracts with COLA clauses ... 2.3 Contracts without COLA clausesl 2.1 Manufacturing ....................I 2.1 Contracts with COLA clauses ... 2.4 Contracts without COLA clausesl 1.3 Nonmanufacturing . ............... 2.3 Contracts with COLA clauses ... 1.9 Contracts without COLA clausesi 2.4 Construction ....................I 2.9 All industries excluding I construction .................. 2.0 Nonmanufacturing excluding I construction .................. 1.9 Annual average over life of I contract5/ All industries .................... 2.1 Contracts with COLA clauses...1 1.5 Contracts without COLA clausesl 2.5 Manufacturing ..................... l 1.3 Contracts with COLA clauses ... I 1.0 Contracts without COLA clausesl 2.1 Nonmanufacturin. 1 2.7 Contracts with COLA clauses...| 2.7 Contracts without COLA clausesl 2.7 Construction ...... ....... 3.1 All industries excluding I construction .......... | 1.8 Nonmanufacturing excluding I conistruction .......... 1 2.5 ompensation adjustments in settlements I covering 5,000 workers or more: I First year4I All industries . ...........I 3.0 Contracts with COLA clauses ... 3.2 Contracts without COLA clausesl 2.7 Annual average over life of contract5/ I All industries ..... 2.6 Contracts with COLA clauses... l 2.3 Contracts without COLA clausesl 2.9 2.1 1 2.0 1 2.2 1 2.1 1 1.0 I 2.4 I 2.2 1 3.9 1 2.1 I 1.2 1 2.2 1 2.3 2.3 2.1 2.4 2.1 1 1.3 1 2.3 1 2.5 3.5 I 2.4 1.8 2.4 1 2.6 I 1.8 1.5 1 1.8 1.8 1 .8 1 2.0 2.6 1 2.6 2.6 1 2.2 1 1 2.3 1 1 1.9 9 1 2.8 1 1 2.9 1 1 2.7 I 1 2.7 1 2.5 1 2.8 1 i i 1 2.2 1 1 1.8 1 1 2.6 1 2.0 2.0 2.0 2.3 I I 1.5 1 2.8 2.7 2.0 1 2.0 I 3.1 1 3.4 1 2.6 1 2.4 1 2.2 1 2.8 1 2.7 1 1.9 1 3.1 1 2.5 I 1.7 1 3.6 1 2.8 1 2.7 1 2.8 1 1.9 3.0 3.9 2.8 1.6 3.5 2.5 1 .6 3.8 3.1 1.3 3.3 2.8 2.8 3.5 2.7 2.4 2.9 2.0 2.2 1 .7 3.4 2.9 3.5 .4 3.0 4.1 2.3 1.7 2.5 1 .8 1.4 2.3 2.7 2.8 2.7 1.7 2.3 2.9 3.4 1 3.8 i 3.1 2.5 1 4.6 1 3.3 4.0 ! 3.2 1 2.9 3.2 1 2.2 1.8 1 2.6 4.0 ! 2.0 I ._ LI I . . 1/ See note 1, table 1. 2/ Preliminary revised. 3/ Preliminary. 4/ See note 2, table 1. 5/ See note 3, table 1. G-27 i 2.6 1 2.4 1 2.7 1 2.2 1 2.1 1 2.5 1 2.8 1 2.9 1 2.7 1 2.2 2.6 3.1 2.4 1 .8 2.8 2.1 1.8 2.6 2.5 1 .7 2.8 2.6 2.3 2.5 1 2.5 1 2.2 ! 2.8 , , , , _ Table 8. Average effective wage adjustments in collective bargaining agreemenits coverinig 1,000 workers or more, 1987 and, by quarter, 1988 (in percent) 1 1987 1 1988 Characteristic I I T T I Full I I1 I III' I 1111/ I 1V2/ I Full Year I I I I I Year2/ Adjustments (prorated over all I I I I I workers)3/ I I I I I I Total effective adjustments .......... 3.1 I 0.4. 0.9 I 0.8 I 0.5 I 2.6 Source: I I I I I Current settlements .............. .7 .1 .3 1 .2 1 .1 1 .7 Prior agreements ............I.... 1.8 1 .3 1 .5 I .4 1 .2 1 1.3 COLA provisions . ............1 I .1 I .2 1 .2 1 .6 Industry I I I I Manufacturing .............. l 3.4 I .5 I .7 I .8 1 .9 1 2.8 Nonmanufacturing ......I.... 2.9 I .4 1 1.0 1 .8 1 .3 1 2.5 Nonmanufacturing excluding I I I * I construction ........... l 2.8 I .5 .7 1 .8 1 .4 1 2.4 Construction . ....I.... 3.1 1 .3 1 1.8 1 .8 I .1 1 2.9 Transportation and public utilities.1 2.7 1 .3 1 .7 1 .8 1 .2 1 2.1 Wholesale and retail trade .....I.... 2.0 1 .2 1 .8 1 .6 1 .7 1 2.3 Services ....................... 3.8 1 1.0 1 .6 1 1.2 1 .7 1 3.5 Effective wage change for workers I I I I I I receiving changes4/ I I I I I I Total effective wage change ........... 3.6 7 1.6 I 2.3 I 2.1 I 1.9 I 3.3 Source: I I I I I Current settlements .............. 2.9 I 2.7 I 3.1 1 2.7 1 3.1 3.1 Prior agreements ................ 3.3 2.7 3.3 2.5 1 2.8 1 3.0 COLA provisions .................. 2.6 .6 .6 . 1.1 1 1.2 1 2.7 rotal number of workers receiving wage I I I I I I change (in thousands)3/ ............... I 5,376.3 1 1,658.3 1 2,268.8 1 2,231.5 1,553.9 1 4,736. I I I I . I I Source: I I I I I Current settlements .........I.... 1,620.1 1 202.8 1 650.0 1 395.6 1 265.5 1 1,423. Prior agreements .............-I 3,547.1 1 603.5 1 849.3 1 988.4 1 344.3 1 2,612. COLA provisions .................. 1,276.7 1 952.8 1 846.4 1,042.9 1,002.9 1,268. lumber of workers not receiving a wage I I I I I change (in thousands) ................. 956.3 I 4,363.9 I 3,753.5 I 3,790.7 1 4,468.3 1,285. 1 Preliminary revised. 2/ Preliminary. 3/ Includes increases, decreases, and no change in wages stemming from current settlements, igreements reached in a prior period, and COLA clauses. Because of rounding and compounding, sums -f individual items may not equal totals. 4/ The total change reflects the worker weighted average of each source of wage change. 5/ The employment total does not equal the sum of employment for each source, because some orkers receive wage changes from more than one sour-e. G-28 Table 9. Average wage adjustments I/in collective bargaining settlements covering 1,000 workers c more during 4-quarter periods. (in percent) Four quarters ending Measure I 1986 1 1987 1 1988 I 1 1 T I I I I IV I I I II I1II I IY 1I2/ IIIZ/ IIII2/ IIV3/ All industries I I I I I I I First year4/ .................. 1.2 1 1.2 1.5 2.0 1 2.2 1 2.4 2.4 2.5 1 2. Contracts with COLA clauses. I 1.9 I 2.0 1 1.8 1 2.1 2.3 1 2.2 1 2.4 1 2.4 1 2. Conitracts without COLA clauses ...l .9 1 .8 1 1.3 1 2.0 2.1 1 2.5 1 2.4 1 2.6 1 2. Over life of contract/ ........... 1.8 1.81 2.0 2.2 2.1 1 2.2 1 2.0 1 2.2 1 2. Contracts with COLA clauses .... . l 1.7 1 1.8 1 1.7 1 1.7 1 1.5 1 1.4 1 1.5 1 1.5 1. Contracts without COLA clauses.:..I 1.8 1 1.8 1 2.1 2.5 1 2.5 1 2.7 1 2.5 1 2.8 1 2. Manufacturing I I I I I I I I I First year4/ ..1 -1.2 1 -1.5 1 -.8 1 1.1 1 2.1 1 2.4 1 2.5 1 2.5 1 2. Contracts with COLA clauses ...i. .I 1.3 1 1.3 1 1.3 1 2.1 1 2.4 1 2.4 1 2.5 1 2.4 i 2. Contracts without COLA clauses...I -2.8 1 -3.5 1 -2.7 1 -.1 1 1.3 1 2.4 1 2.5 1 3.0 2. Over life of contract/ ...........I .21 / .31 1.01 1.31 1.51 1.61 1.9 2. Contracts with COLA clauses .....I .9 1 .8 1 .8 1 1.0 1 1.0 1 1.0 1 1.3 1 1.4 1 1. Contracts without COLA clauses... -.2 1 -.6 1 -.2 1 1.2 1 2.1 1 2.7 1 2.5 1 3.1 1 2. Nonmanufacturing I I I I I I First yearA/ ....................... l 2.0 1 2.2 1 2.3 1 2.4 1 2.3 1 2.3 1 2.3 1 2.4 1 2. Contracts with COLA clauses ...... 2.1 1 2.2 1 2.1 1 2.1 1 1.9 1 1.6 1 2.2 1 2.4 1 2. Contracts without COLA clauses ... 2.0 1 2.1 1 2.3 1 2.6 1 2.4 1 2.5 1 2.4 1 2.5 1 2. Over life of contractS/ ........... I 2.3 1 2.4 1 2.6 1 2.8 1 2.7 1 2.7 1 2.4 1 2.4 1 2. Contracts with COLA clauses ...... 2.1 1 2.2 1 2.2 1 2.4 1 2.7 1 2.4 1 1.9 1.8 1 1. Contracts without COLA clauses ... 2.4 1 2.5 1 2.7 1 2.9 1 2.7 1 2.7 1 2.6 1 2.7 1 2. Construction I I I I I I I I I First year4/ ...................... 2.21 2.41 2.7 1 3.01 2.91 2.91 2.6 1 2.1 1 2. Contracts with COLA clauses ...... 1.41 1.6 1 3.7 1 / 7 / 2/ I A/I A/ I8 Contracts without COLA clauses ... 2.3 1 2.4 1 2.7 / I / 7 1 1 2.6 I 2.1 I 2. Over life of contract3/ ...........I 2.5 1 2.5 1 2.9 I 3.2 1 3.1 3.1 1 2.7 I 2.4 I 2. Contracts with COLA clauses ...... 1.6 I 1.4 I 3.8 1 2' I 7/ I 2' I 8/ 1 8/ 1 8 Contracts without COLA clauses ... 2.5 I 2.6 I 2.9 I / 1 2:7 I 274 I 2. 1 See note 1, table 1. ,/ Preliminary revised. 3_ Preliminary. 4/ See note 2, table 1. E/ See note 3, table 1. j/ More than 0 and less than 0.05 percent. 2/ Data by COLA coverage do not meet publication standards. A/ None of the settlements included COLA provisions. G-29 Table 10. Average effective wage adjustments in collective bargaining agreements covering 1,000 workers or more during 4-quarter periods. (in percent) I Four quarters ending Characteristic I 1986 1 1987 1 1988 ! IV I III IV II/ II1/ III1z I V2o Total effective adj'ystments I I I I I I I I I (prorated over ail workers)3/....l 2.3 1 2.0 1 2.2 2.51 3.1 1 3.2 1 3.0 1 2.9 1 2. Source: ! I I I I I I I From current 3wttlements.. 5 .4 3 .4 .7 .8 1.0 1.0 From prior agreements..... 11:7. l 11. 1 1.6' 1 1.71 I.81 1 1. Fro ............. . - 2 I .1 .1. .4 :5 1: .51 .51 Effective wage change for workers I ' I I I receiving changeA/ ...............I 2.8 I 2.4 2.7 3.21 3.61 3.81 3.71 3.51 3. Source:I II I I I I I From current settlemonts ....... 1.6 1 1 1.0 1.8 1 2.9 1 2.9 1 2.9 1 2.9 1 3. From prior agreements ........... 3.9 1 3.7 3.5 3.3 1 3.3 1 3.3 1 3.3 1 3.0 1 3. From COLA ......................I 1.0 .6 1.8 2.31 2.61 2.71 2.31 2.51 2. 1 Preliminary revised. Z/ Preliminary. 3/ See-note 3, table 8. / See note 4, table 8. G-30 Collective bargaining in 1989: negotiators will face diverse issues Agreements covering 3.1 million workers in private industry and State and local government will be on the table; talks set in communications, steel, longshore, and health care industries WILLIAM M. DAvis AND FEHMIDA SLEEMI About 3.1 million workers are under major collective bar- gaining agreements (those covering 1,000 workers or more) scheduled to expire or be reopened in 1989. They constitute 36 percent of the 8.6 million workers under all major agreements in private industry and State and local government. In private industry, scheduled bargaining will cover 2.1 million of the 6.1 million workers under major agree- ments, or about 35 percent, compared with 38 percent in 1988 and 30 percent in 1987. In State and local govern- ment, bargaining will involve 968,000 of the 2.5 million workers under major agreements, or about 39 percent. This proportion was 42 percent in 1988 and 49 percent in 1987. In private industry, 78 percent (1,630,000) of the work- ers whose contracts are slated for renegotiation in 1989 are in nonmanufacturing industries, compared with 63 percent in 1988 and 53 percent in 1987. They are concen- trated in communications (534,000 workers), construc- tion (434,000), and retail trade (240,000). Manufacturing industries with the largest number of workers under con- tracts slated for renewal are transportation equipment manufacturing (mainly aerospace), with 111,000 workers, and primary metals (mostly steel and aluminum produc- tion) with 107,000. (See tables 1 and 2.) William M. Davis and Fehmida Sleemi are economists in the Division of Developments in Labor-Management Relations, Bureau of Labor Statistics. Other contributors wee Joan D. Borum and Phyllis 1. Brown, social science research analysts, and John J. Lacombe 11, Edward J. Wasilewski, and Kay Anderson, economists, in the same division. Reprinted from Monthly Labor Review, January 1989, 10-24. G- Workers covered by public sector contracts scheduled to expire or reopen in 1989 are almost equally divided between State and local governments. At the State level, half (502,000) of the 1,029,000 workers under major agreements will be covered by negotiations during the year; three-fifths of these workers are in general adminis- tration. In local government, one-third (467,000) of the 1,457,000 workers under major contracts have agree- ments up for renewal; three-fifths of these are in primary or secondary education. Information on 1989 bargaining is based on data avail- able to the Bureau of Labor Statistics as of September 30, 1988. Thus, any settlements occurring in the fourth quar- ter of 1988 that provide for 1989 expiration or reopening could affect the proportion of workers scheduled for ne- gotiations in 1989. In State and local government, for example, 919,000 workers were under 228 agreements that expired by December 31, 1988, but for which settle- ments had not been reached or details of new settlements had not been available by September 30. Ninety percent of these workers are under contracts that expired by the end of the third quarter. In the unlikely event that all of these contracts are settled before the end of 1988 and call for termination or reopening during 1989, bargaining activity for the year in State and local government would be ex- tremely heavy, affecting about three-fourths of the work- ers under major agreements. The bargaining agenda will also include negotiations that continued into 1989 on con- tracts that expired or reopened in 1988 or earlier. -31 Table 1. Major collective bargaining agreements scheduled to expire or with wage reopenings, by year and industry {Workers n tousandst Total' _ Year oetxelration or scbedulud wage reopening, or beth Induscg Number 196"9 1991 1991 and later Uk ur in agreeneets red Numbereot Workers Number of Workers Number be Worbens Number of Wetters I .aeemets ceonred ageereemns tevered ageements I eenved agreements covered All redkusrres'................. 1.948 tOt67 794 3.068 523 2.600 314 1.452 433 1,092 AN peivate endustries...........1.289 6.080 503 2.100 380 1.984 241 1,173 205 975 Manulacuirig ............ . 457 2.093 164 470 136 1.013 9t 436 72 222 Food and kindred products ........... 6 140 22 34 21 43 9 50 5 14 Tobaccooproducts ................ 3 1 4 2 1 3 - - I 1 - - Textite mintproducts ............... 7 22 2 3 2 1 0 2 7 5 1 6 Apparel andother tnt-le products ...... 28 202 2 6 6 06 1 6 93 4 8 Lmeradwod product% excep trcniture ..................... 12 20 1 1 1 2 8 1 7 2 5 Fume nitrud rotturu.............. 0 6 - - 2 2 1 1 2 2 Paper andstliedproducts............ 36 49 19 23 11 1 6 2 3 5 6 Prk*ng and pubdlltsirng ............. 16 20 8 1 6 5 6 3 0 1 1 ChtemicsleetdulaFed prducts . ..~... 27 49 1 3 22 5 9 4 1 0 7 1 3 Petroleumeaedcoal pcducts .1........ I1 33 1 1 1 0 32 - - - - Rubtberudensebekeoueplasetc products ..................... 13 47 2 3 7 36 6 34 1 1 Le9w and lea8tewpugdckte......... 3 1 5 - - 2 1 1 - - 1 4 Slive, day. wndgleuproducts ........ 19 47 4 6 9 32 3 3 4 7 Pdceaoy eselsUkeduesul............. 44 202 25 107 1 0 80 3 20 6 21 Fulsicuedesteliprducts ........... 24 49 12 22 5 1 6 2 3 0 8 hsduelftdietctIey woequIrd ...... 27 87 9 25 7 22 5 6 6 34 RelreedglCesdelserIleclhlxeqsdpese... 43 231 19 73 a 31 10 96 8 30 Trutupo-11M-i equipliit ............ 74 832 21 111 24 594 18 78 1 1 49 lIeuthosuittsud'lslsdprcksct...... 4 92 2 4 1 6 1 1 - - IMIlbIselmugnwessottlacbubkxngbsue...e 5 7 1 2 1 1 2 3 1 2 Neemusulcbto,b eg.... . 832..... a 3.987 339 1.630 244 971 145 737 133 752 Milg ........................ 5 73 3 5 1 3 1 65 - - e5u8e.................... 361 1.008 159 434 126 376 74 221 1 7 44 *laclbe...02 257 16 77 10 51 4 32 23 100 R~odWuOepl2e. 6 352 - - - - - - 26 352 Trecbbsgaid eneetg13 309 3 4 2 115 4 154 5 38 Cemeedsfs. ................. 39 565 26 53 8 23 5 9 I I Ee*egms,wtdeuuyeevle ..... 4 234 32 9 20 6 12 0 14 s Whleltads ................. 10 36 3 4 5 8 1 25 1 2 place....................... 123 576 43 210 30 164 34 141 1 7 63 EsduattdIuldgpls ............. 12 37 9 30 - - - - 4 1 5 Pb-emfe bessrsNWe,usomsee ....... 23 129 6 so 10 25 3 35 4 1 1 msseeAu...................... 38 191 12 43 13 52 3 5 10 52 Hoebeunde8w edghgplaces ....... 15 104 a 80 3 39 1 9 3 6 HeleII ees.................. 41 154 19 89 1 4 49 3 1 2 9 11I Stl adleoedbegovnecc ...eet .. 699 2Z487 391 969 143 616 73 360 229 917 Steleguruereeet................ 186 1.029 108 582 19 137 20 101 57 415 Leb Celgoneceme................ 473 1.457 180 467 124 479 53 179 171 502 'ToW. msvbbeulesue =the an of Ifiededufor eavlduelgymebcam 116 ceeeut wereeot ruuted by t Uneesgrenelodn wichbexpired peorgto 1.1968. egeceeseeee 445.000 wourkec haew bothOPk Nep Wdg modepirlsebe i dn edctecu butfrwih lfmdceuouwasonotunabaleW undugrewnwueto9VWha Ueeeecpedo. no tsd eq*donpu9orepsdngdu 'bdde greeedwldch wereduetoen ebetwee OCL 1usd De- 31. , uPntuugluaedu6eudoludoegnecet 1968; mgreos--e--t---t--b expired pulorto OYct 1,968. butk lowluc use age. NMu ssuscruee. 13CU9 ufceft -oftkdiniutucseu myeuequadl stao. The conomy Economic Analysis to forecast movements in aggregate When George Bush becomes President in Janluary, he economic activity, pointed to an economic slowdown in will face mixed signals from some of the major indicators 1988. For the year ending September 1988, the index in- of the Nation's economic well-being, judging from data creased 0.7 percent, compared with an increase of 6.7 available at the time of his election. The stock market had percent for the previous 12-month period. Meanwhile, the rebounded from its low in October 1987, and unemcploy- budget and trade deficits were continuing major concerns. ment remained relatively stable at about 5.5 percent Bargaining developments during 1988. For the year ending September 1988, the Negotiations in 1989 follow another year of relative price rise, as measured by the Consumer Price Index for peace in labor-management relations. Through the first 9 All Urban Consumers (cpot-u), was 4.2 percent, and the months of 1988, there were 28 major work stoppages gross national product grew about 3.7 percent. However, (strikes and lockouts involving 1,000 workers or more). the composite index of leading economic indicators, com- At that rate, thie tiumber of stoppages in 1988 would fall piled by the U.S. Department of Commerce's Bureau of below the record low of 46 set a year earlier. Fewer than G-32 - MONTHLY LABOR REVIEW January 1989 . Collective Bargainirtg in 1989 Table 2. Calendar of major collective bargaining activity (Workers in thousandsl Agreement expirations and/or scheduled wage Year and month reopeenings' Prncipal industees Number Workers covered All years0 ....... Total 19893 ....... January ..................... February ................... March ..................... Apnil .......................... May .......................... June ......................... July ....:..................... August....................... September ................. October..................... November .................. Decemiber ................... Total 1990............. Jantway ...................... Febru y ..................... Mach....................... Apd........................... may........................... June .......................... July ........................... Aug...t..................... . SWp mber .................. October ...................... November ................... December ................... Total 1991 and later....... Year unknwn or n nego- batian 1.948 794 19 23 58 74 82 278 34 73 66 34 19 36 523 33 28 37 69 157 25 28 49 19 13 22 314 433 8.567 3.068 51 103 178 176 379 998 66 535 236 162 57 130 2,600 107 141 124 128 218 553 176 148 845 51 40 82 1,452 1,892 ............................... ............................... Tobacco, aidines Food stores State and local gover- rnent Construction Communications, con- struction State and local govern- nent. construction, health services. ahninimm Constucbon Communicabtons local go9?mmor. steel Food stores. State and toca goverment. mari- time Aicoaft ma wktactarisg. tood stores Local gonee heah services Rea estate manage- mesd, but maintenaoce Pehdesmref Apparel n odfter textle Heafh sveso co- situction Comotowon Stte and ocal gorem- mwes Pc deey Food stores AutomobNes, State and kxa govermet Food stores Tsportatin equip- ment Local govenment ............................... ............................... c Irtckdes al pnvate nonagncuftural industries and state and boat govern- mets. 2 See note 1, tabe 1. 3o nckodes two agreements covering 3,000 workers which have both a wage reopening and expiration scheduled in 1989. ' See none 2, table 1. NoTE: Because of roundicg sums of iirivuat hems may not equal totals. 100 major work stoppages have been recorded each year beginning in 1982 through 1987, when the record low was set. The use of the work stoppage as a bargaining tool has declined sharply since 1980. In all but 2 years between 1947 and 1979, there were from 200 to 470 major stop- pages. There were 187 in 1980, 145 in 1981, and there have been fewer than 100 each year since 1982. Major collective bargaining agreements in private in- dustry that were negotiated in the first 9 months of 1988 provided wage rate adjustments averaging 2.4 percent an- nually over the contract life. Since 1982, settlements have called for average annual wage rate adjustments of be- tween 1.8 and 3.6 percent over the contract term. From 1968, when the series began, to 1981, settlements pro- vided wage rate adjustments averaging from 5.1 to 8.9 percent annually over the cotitract term. The size of ma- jor settlements reached in the last few years contributed to keeping wage increases, as measured by the Bureau's Einployment Cost Itidex (ECI), proportionally smaller for all unioti workers than for nonunion workers in each cal- endar quarter except two, from the fourth quarter of 1983 to the third quarter of 1988. In part, the size of negotiated wage rate adjustments in the first 9 months of 1988 reflects continuing economic difficulties facing many industries, including competition from abroad, competition from nonunion firms at home, and declining employment opportunities. However, meas- ures of wage rate adjustments do not capture the changes in other forms of worker compensation that are not part of the wage rate. For example, increasing costs for health benefits have diverted funds that might have been avail- able for wage increases. In addition, the collective bargaining settlements series excludes lump-sum payments such as those that have been, since 1983, a significant part of settlements for many work- ers.' These payments were often introduced to curb labor costs, particularly in firms facing economic hardships. They are made in lieu of or to supplement wage increases, or to offset wage cuts. They keep down labor costs because they generally are not taken into account in calculating certain benefits, and they are one-time payments that are not added to the permanent wage-rate structure. Payments may be specified as a uniform dollar amount for all work- ers, a uniform percentage of earnings during a specified period, or a dollar or percent amount varying by occupa- tion, skill, pay level, work schedule, or length of service. They may also be contingent on profit levels. Contracts that include provisions for lump-sum pay- ments provide smaller wage adjustments than those without lump sums, on average. For example, private in- dustry contracts expiring in 1989 that have lump-sum provisions provided specified wage-rate adjustments aver- aging 1.4 percent annually over the contract term, com- pared with 2.6 percent for those without lump sums. Agreements for one-third (709,000) of the workers in private industry whose contracts are slated for renewal in 1989 include lump-sum provisions. These workers are concentrated in telephone communications (265,000), food stores (106,000), and transportation equipment, mqstly aerospace (93,000). Overall, about 43 percent (2.6 mi3lion) of the workers under major contracts in private industry have agreements providing lump-sum paymenits. (See table 3.) Some bargainers will have to deal with problems that derived from the two-tier wage and compensation struc- tures which they introduced in their preceding contracts in attempts to cut labor costs. These structures temporar- G-33 ily or permanently provide wsge scsles or benefits, or specified wsge sdjustments only (excluding sdjustments both, thst sre lower for employees hired sfter a certain from COLA clsuses). dste thsn for employees hired earlier. Some recent con- Percent wage adjustments trscts hsve reduced the differentisl between tiers or Total Specified only eliminated the structure entirely because of problems that Prvtinury........... 24 22 two-tier systems create for both employers and union Contracts With COLA........ 2.5 1.8 leaders. Contracts wiithout COLA...... 2.3 2.3 In addition to considering the general economy and trends in collective bargaining, this year's negotiators will Wage adj'ustments provided by contracts expiring or take into account what their expiring or reopening agree- reopening in 1989 are the smallest in the 15 years for ments have yielded. wvhich the Bureau has been compiling these data. Speci- fied adj'ustments averaged 2.2 percent a year, and wvhen Expiring and reopening agreements COLA'S thiroughi September 1988 were added to them, Privacte industry. The following tabulation for agree- total ad'justmients averaged 2.4 percent a year. Adjust- ments expiring or reopening in 1989 showvs total average niettts for cotttracts wiith COLA's and for all cotstracts annual wvage adjustments-specified adjustments and combttted may chansge as a result of potential COLA ad- those triggered by cost-of-living adjustments (COLA's) justtssettts occurring betwveen October 1, 1988. and con- through September 30, 1988. It also showvs average anniual tract reopeittitgs or expirattoits in 1989. G-34 Table 3. Incidence of lump-sum payment provisions in major collective bargaining agreements, October 1988 [Workers in thousandst Agremerts with Agreemrenrts wilh tANgreements lump-sum All agreements lump-sum 1998 ~~~~~~~~~~provisions 198prmvisions SC Industry' Percent SC lndustry percen code' W~~Nsm orkdcers ofodkers Workers code' Wsrkers ofwok Workers covber ed coro. by Niuer ovee Number cvrdcovered by Numbercoed iosrosm mrdlumap-sum coed I provisons provisions __ Total ............. 1.948 0,567 33 395 20810 35 Machinery, except electrical .......... 27 87 60 1 0 52 Prinate vovagviciitural 36 Electrical roachorey industries ..........1.289 6.080 43 343 2.585 equipmrent and supplies 43 231 69 23 159 37 Transportation equipmeni 74 832 92 55 762 10 Metal sri"ng ......... 3 7 63 2 5 38 trnstruorientsuand relatnd 12 B.iturnouus coalan prnducts .......... 4 12 20 1 3 bgi8e ofrmieg........ 2 66 0 0 0 39 Miscellarieousmffanu. 1 5 BtiMncvmstruction factuitrigindustries .... 5 7 0 0 5 goneal Contractors .... 124 421 0 0 0 40 Railroad tranisportationi.. 26 352 99 24 348 16 Coestruticriooberthaon 41 Localtand urburitransit.. 4 1 1 0 0 0 buAddVconostructiov.... 94 283 0 0 0 42 Motortfreight tvanspurta- 1 7 Constriucbonr-special trade butio............. 13 309 37 2 115 contractors .........143 303 5 0 0 44 Watertransportatiov ... 1 5 '6 0 0 8 20 Food and tkodro 45 Transportationobyear .... 33 183 26 7 48 products........... 56 140 38 23 54 48 Cormiurocatroos....... 39 565 51 27 288 21 Tobaccovsavulactrtir... 3 1 4 85 2 12 49 Eletric. gas. and saritary 22 Teoxile nipltpi'dcts .... 7 22 0 0 0 services ........... 74 234 14 9 33 23 Appareluadd lvtw fsoished prockucts...... 20 202 2 2 5 50 Wholosale rade-- 24 Lwolbw asdswood prod- dtwables........... 3 6 0 0 0 ucts sxcoplfu*iler.... 12 25 63 7 16 51 Whtolesaltrade.-- 25 Ftxrivftrandllfdces .... 5 6 26 1 1 noridrtabls ......... 7 32 88 3 28 53 RetaAOuugooa -26 Papw and aludproducts. 36 49 68 24 33 morclvaot ......... 14 61 53 4 32 27 P*vrig, pcdttlllkgav 9W4 Food stmr........... 97 488 62 52 302 alldiedoobriduis....... 16 25 0 0 0 55 Ausomo8nudealers and 28 Chorrvicals ard aFled seoAe sutab" r....... 5 9 0 0 0 products........... 27 48 27 8 13 56 Appureadusodessory 29 Pulroluusoruftuing a-d stores ............ 2 6 0 0 0 colut.didoudustis..1... 1 I 33 88 10 22 56 Eaotegooddivking 30 Rsdoubbradoduullanse. places............ 12 37 0 0 8 osus pllist........ 13 47 1 1 2 5 88 Miscellalalous retoll 31 LeUw aid leafler stoves............. 5 1 3 38 2 5 producft........... 3 iS5 0 0 0 88-65 Fisance.evssaniceand 22 Shore. clay. glubsand restuelate.......... 23 128 7 2 9 cconcros productso... 19 47 23 6 1 1 70-89Servi .............. 94 408 28 20 114 33 Pdmuymstlulirvdustries. 44 202 37 18 74 34 FabdcldoetW eW State odtkculgovemo. produclts........... 24 49 48 8 24 mont..............6592Z487 9 52 233 'Tee r on major coNucOe burguinig ugruowoests iv mic codes 13. 14. 46, NoTc: Because oflmnuding.nsums ofidiidoutal om ay not equalJto and 47. 52. 57. or867. percestages rmy noqot owWmoricuworker ra6os. -indudes d pmte nonagricultural fficlustries oW State and local W"mment. MONTHLY LABOR REVIEW January 1989 * Collective Bargainiing in 1989 Contracts covering 26 percent (552,000) of the 2.1 mil- lion workers whose agreements will expire or be reopened in 1989 contain COLA clauses. For the second consecutive year, these contracts will yield larger total wage adjust- ments than contracts without COLA clauses. This follows 5 years during which expiring contracts that did not have COLA clauses yielded more than those that did. Part of this reversal in pattern can be traced to the difference its the rate of increase in consumer prices during the two periods. The Consumer Price Index for Urban Wage Earners and Clerical Workers (cpi-w) rose less than 4 percent a year between 1982 and 1986; the index in- creased 4.5 percent in 1987 and rose at an annual rate of 4.5 percent during the first 9 months of 1988. Expiring or reopening contracts for 332,000 workers (primarily in telephone communications and the steel industry) had discontinued COLA coverage; those for 38,000 workers added COLA coverage. The subject of coLA's, therefore, will be discussed by negotiators of these and other con- tracts this year. State and local government. State and local government contracts expiring or reopening in 1989 provided annual wage adjustments averaging 5.1 percent. The effect of COLA'S on the overall average was insignificant because COLA clauses in major State and local government agree- ments cover only about 3 percent of the workers. Lump- sum provisions are only somewhat more common, affecting about 9 percent of the workers under contracts up for rene- gotiation in 1989. Trends in coLA coverage The proportion of private industry workers under ma- jor agreements with cost-of-living adjustment (COLA) clauses has been declining over the last 10 years, from a peak of 61 percent in 1977. The proportion declined somewhat from 1978 through the end of 1984, dropped sharply in 1985 and 1986, declined slightly in 1987, and rose slightly, to 40 percent as of October 1988. (See table 4.) The decline stemmed from employment losses in in- dustries in which COLA clauses were common and the suspension or elimination of COLA coverage, especially in contracts settled in 1985 and 1986. Some of the settle- ments that dropped COLA clauses replaced contracts that had provided little or no COLA increase. As of October 1988, 2.4 million out of 6.1 million (40 percent) private industry workers under major agree- ments had COLA coverage. (See table 5.) In State and local government, COLA coverage is rare, applying to only 3 percent of the workers under major agreements. Deferred wage changes in 1989 Of the 8.6 million workers covered by major collective bargaining agreements, 2.8 million are scheduled to re- ceive specified wage changes averaging 4.0 percent in Table 4. Workers under cost-of-living adjustment clauses in major collective bargaining agreements in private industry, 1971-89 (Numbers in o_ill_ons_ Total worers With coL coeatoge Number Number Percenet 1971. 10.8 3.0 28 1972 10.6 4.3 41 1973 10.4 4.1 39 1974 .10.2 4.0 39 1975. 10.3 5.3 51 176. 10.1 6.0 59 1977 .9.8 6.0 61 197 8 .9.6 5.8 60 1979 .9.5 5.6 59 1980 .9.3 5.4 58 81 .9.1 5.3 58 1982 .8.8 5.0 57 1983. 8.3 5.0 60 1984 .7.7 4.4 57 1985 .7.3 4.1 56 1986 .7.0 3.4 48 1987 .6.5 2.6 40 1988 .6.3 2.4 38 1989 (premiray3 .6.1 2.4 40 o Datareto Deeometr 31 of preot year. 2Pwrcet coveraewas coowu odonactoot o xo o pytuart numbom ' Data rete to inflornmaoobe as of OcL 1, 188. 1989 under the terms of contracts negotiated earlier. (See tables 6 and 7.) In private industry, 2.0 million workers will receive deferred wage changes (all but 5,800 will re- ceive increases) that will average 3.4 percent, up from last year's 3.0 percent, which was the smallest change in the 21-year history of this statistical series. Deferred wage changes, averaging 5.4 percent, are scheduled for 808,000 workers in State and local governments, compared with a 5.0-percent change in 1988. Bargaining in key industries Bargainers will be operating in the same general eco- nomic climate. For most, however, the local economy, or economic conditions in the industry or in the bargaining unit itself, will largely determine the outcome of individ- ual contract talks. The remainder of this article describes issues that will face negotiators in key industries in which the heaviest bargaining will occur this year. The issues are as diverse as the industries involved in contract talks. Job security will be a primary concern in some situations, while im- provements in wages and benefits will be the most import- ant issue in others. State and local governmenit. About 968,000 workers are covered by 291 mnajor State anid local government con- tracts that will be expiritig or reopening in 1989. They include 502,000 workers unider 106 State cotitracts and 467,000 workers under 185 local governmeitt contracts. Expiring cotitracts accoutit for about 39 percent of the 2.5 milliots workers under major State and local govertinient G-35 agreements, compared with 42 percent in 1988 and 49 Primary and secondary education accounts for 62 per- percent in 1987. cent of the workers under expiring local government Unions representing government workers include: the contracts; the majority are teachers. In education, de- American Federation of State, County and Municipal pending on the school district, all or most occupations Employees (AFL-CIO) which represents a variety of gov- (such as teachers, teacher aids, clerical workers, bus driv- ernment workers; the National Education Association ers, and cafeteria workers) may be covered under one (Independent) and the American Federation of Teachers contract or separate agreements may cover one or several (AFL-CIO), which chiefly represent workers in public edu- job classifications. catin; te Fateml Oder f Poice(Indpenent)and During the coming negotiations, bargainers will be in- cto;the Fraternio al Aso rderio of Poice (indtependent)CIand terested in recent changes in wages and benefits in other which represent many public protective service workers; gvrmentsechedndrings Sthte fist9n onh fca 191po videt edte and the Amalgamated Transit Union (AFL-CIO), which mnsrahddrn h is otso 98poie bargans fr wokers n pulic ransi sysems.wage adjustments averaging 5.3 percent over the life of bargans fr wo kers n pu lic ransi sysems.their contracts, compared wyith 5.2 percent in the agree. Workers in general government administration account metits they replaced. Settlements reached between Jan- for 62 percent of the workers under State agreements uary and September 1981 varied by level of government as scheduled to expire or be reopened in 1919. These work- wvell as government function. Average annual wage adjust- ers are employed in a variety of occupations including ments over the term of the agreemeilts were higher in local secretaries, administrators, accountants, craftspersons, than in State government contracts (5.4 and 5.1 percent, and appraisers. respectively). Contracts for education employees in local G-36 Table 5. Incidence of cost-of-living adjustment clauses in major collective bargaining agreements, October 1988 [Workers iv thousands) Alt arements Agmrem rb wt All agreemrents Agreemnrets with corAcdauses cosaclaruse 1908 1968 sic Industry' Perewot ofsic Industry Percoentot Code' ~~~~Number Worker workers Number Woebers Code' Numnber Workers workers Number Workers covered coveed by cowerd covered covered by covered coLA douses cor.A dauses Total ............ 1,940 0,567 29 313 2.481 35 Machinery. except electrical .......... 27 07 70 19 60 Private vonagricultural 36 Electrical macNnvery erdustries..........1.289 6,080 40 209 2.408 equipment avd supplies 43 231 63 25 144 37 Trunspodtation equipmrevt 74 032 01 56 758 1 0 Metal mirevig ......... 3 7 0 0 0 30 Instruments and related 1 2 Bituminous coal and products .......... 4 12 20 1 3 lignite mrniog........ 2 08 0 0 0 39 Misceataneous manu- 1 5 BuLdrr corrstrutonbr facturirrg endustries .... 5 7 27 1 2 general contractors ... 124 421 6 5 26 40 Railroad transportaln ... 26 352 99 24 348 10 Cooskton cothebr than 41 Locat arndurban transdt... 4 1 1 1 2 1 bukdig constructorv .. 94 283 3 2 0 42 Motor freight transporta- 1 7 Coeltuclio-spwccot tion ............. 13 308 95 0 292 trade contrcctrs ..... 143 303 4 5 1 2 44 Water transportation t... O 62 36 4 23 20 Foodoandkkidrrdd 40 Transportationbyosir... 33 183 3 2 6 prockucts .......... 56 140 0 5 1 1 48 Comrmmrications ....... 39 565 41 1 8 230 21 Tobacco manufaclwdng .. 3 1 4 108 3 1 4 40 Etwctric gas,oand saniar 22 Texotwnmiltproducts .... 7 22 106 1 4 services........... 74 234 1 0 0 23 23 Apporel anodotber fOnlshedpodtacts .... 26 202 47 1 7 96 00 WVholcobetrade - 24 Luitnwuand wood prod. darbts ........... 3 6 0 5 0 ucts.wttextcoXhmituc... 1 2 25 0 1 2 51 Wholmwootend- 25 Furniture and fidures 5 6 0 5 0 ...d......... 7 32 77 1 2 53 ReWloilod-gwweco 20 PaperanduaFied products 36 49 0 0 0 merchandise........ 14 01 30 2 24 27 PMotsgpedhtlu angad 54 Food stoos.0........ 7 4968 1 2 5 I" edbduslles ...... 16 25 41 6 10 55 Autoetoitvdealers and 26 Chnomlcatsaod.Illied seevicw staitot...... 5 0 0 0 0 prodckto.......... 27 49 10 3 5 56 Appareltandaccessooy 29 PWNrileorefiriinrgad oW torwo............ 2 8 0 0 0 related bxdustres 1.... I1 33 5 0 0 58 Eatitrig eddrinkinrg 30 Rubber odotiscelmoe- . ......c....... 12 37 0 0 0 OtoS ytmuiloI........ 13 47 03 9 30 59 MiscelaeeoosreWt 31 Le.Atw andleettrustores ............ 5 1 3 34 1 5 produicts .......... 3 1 5 5 0 0 608-0 Fbanuce, nsucroocemand 32 Stonecdhy.gIu s,a rw oulwsl ......... 23 129 52 6 67 coecrete products 1... I9 47 92 16 44 70-69 Seerices............ 94 409 9 10 37 33 PM" mytteatb doshles 44 302 22 13 44 34 Fabdested MeOW SatemodWlocal govern- producto .......... 24 49 69 14 33 moot.............. 6592Z487 3 24 73 'There am nomttraiorlecitv bargube argeemeenetsb mnsc 13.14.48.47. 52 NoTic Becausweofrounding.wommof ndvidaudiKom mopnot equal otals,and 57. or 67. porcweouesomaypnot equaltnmomelcworker ratios, Indudes al pdet.eoeWagdtdsatbdlrleMa ad sftate Icci govrnmeet. MONTHLY LABOR REVIEW January 1989 * Collective Bargaiethtg in 1989 government provided wage adjustments averaging 5.9 per- cent over the life of the agreements. This reflects con- tinuing efforts to improve education by providing salary incentives to attract and retain teachers. When settlements for education employees are excluded, local government settlements provided lower average annual wage adjust- ments over the contract life than settlements in State government. Following are average annual wage adjust- ments over the life of contracts reached during the first 9 months of 1988 (in percent): All State and local government ............................ 5.3 State government ........ .................... 5.1 Local government ............................ 5.4 Education ............................ 5.7 Colleges and universities ............... ............. 4.6 Primary and secondary schools ............................ 5.9 General government and administration ...................... 5.2 Protective services ............................ 5.0 Health care ..... ....................... 5.7 Transportation ............................ 4.6 State and local government, excluding education ............ 5.1 State government, excluding education ..................... 5.5 Local government, excluding education .................... 4.9 Negotiators will also be concerned with what their expir- ing contracts yielded. On average, State and local govern- ment contracts subject to renegotiation in 1989 provided average wage adjustments of 5.1 percent annually over their terms. Expiring local government contracts yielded average annual wage adjustments of 5.5 percent, and State government contracts yielded 4.7 percent. Expiring agree- ments for workers in primary and secondary education provided larger annual adjustments over the contract life than those for all other groups and also were primarily responsible for niaking the average wage adjustmetit higher in local goveriiment than in State government. Following are average annual adjustments over the life of contracts expiring or reopening in 1989 (in percent): All State aitd local government ........................... 5.1 State government ........................... 4.7 Local government ........................... 5.5 Education ........................... 5.7 Colleges and universities ........................... 5.1 Primary and secondary schools ........................... 5.8 General government administration ........................... 4.7 Protective services ........................... 4.7 Health care ........................... 4.9 Transportation ........................... 5.3 State and local Government, excluding education ........... 4.7 State government, excluding education ..................... 4.7 Local government, excluding education .................... 4.9 Three States account for 44 percent of the State govern- ment workers under contracts slated for 1989 talks. They are: Florida (91,000 workers), New Jersey (73,000), and Massachusetts (56,000). In contrast, scheduled bargain- ing activity is geographically dispersed on the local level. For example, Chicago has the largest number of workers (46,800) covered by expiring local government contracts, accounting for 7.5 percent of the total. Florida State government workers are covered by 10 contracts scheduled to expire or reopen for negotiations in June 1989. The American Federation of State, County and Municipal Employees (AFL-cIo) represents 90 per- G-37 Tabe 6. Scheduled defeed wage changes under maor collectve bargaining agreements In 1989, by Industry 9.bW ot Usilduq Mm11hana SdsdW dhdsly d ig..- "beu Td U A WOW ChOLOA mi) Cob Pald cdu PW Co* Few CUb Po Cob Pt" Total2 ...................................... 681 2830 60.2 4.0 32.7 3.0 67.7 4.3 41.9 3.9 60.3 4.0 AN pnatenonagnict inral mdusties ............................. 481 2,022 48.6 3.4 32.7 3.0 54.9 3.6 35.0 3.3 48.8 3.4 Manufacturi .......................... ............ 150 600 20.1 2.8 26.9 2.7 29.2 3.0 26.0 3.0 28.1 2.0 Food and kindred pmducts ............................... 27 89 28.4 2.7 23.5 1.6 28.9 2.8 22.4 2.2 28.4 2.7 Apparel and ot textile products ....................... 21 188 24.3 3.5 27.9 4.0 20.5 3.1 25.0 4.0 24.3 3.5 Petrobum and coal producs 1............................. 10 32 44.2 3.0 0 0 44.2 3.0 44.2 3.0 44.2 3.0 Stone. day and gass products .......................... 10 34 30o2 2.9 30.3 2.9 27.0 2.4 31.0 3.0 30.2 2.9 Metaiworkng ......................... ............. 38 174 23.4 1.9 22.9 1.8 26.3 2.3 18.0 1.5 23.4 1.9 Nonnanfackcurig' ...................................... 331 1,422 57.3 3.7 39.2 3.4 61.6 3.8 41.9 3.7 57.6 3.7 Construction ...................................... 182 523 74.3 3.8 (5) () (5) (5) 70.0 3.8 74.3 3.8 Transportation and public uttites ............... ....................... 53 301 52.8 3.8 30.2 2.4 75.6 3.6 30.0 2.4 52.8 3.0 Wholesale and retad trade ................................ 51 282 36.6 3.9 39.0 4.4 36.4 3.9 39.0 3.8 37.7 4.0 Finance, insurance. and real estate ..................... 13 87 49.4 4.5 52.6 4.7 38.6 3.6 50.0 4.4 49.4 4.5 Sernices ...................................... 31 163 60.1 4.4 51.2 4.6 62.2 4.3 41.2 4.4 60.1 4.4 State and local government ...................................... 200 808 89.1 5.4 32.2 2.7 91.9 5.6 71.8 5.0 89.1 5.4 Changes in cents per work hoer and percent of straight-time average hourly Includes 65.000 workers in the iniing industry ftr which data are not shown earnings. separately to ensure contidentiality of data. 2Inckxdes all private nonagriculural industries and State and local govenrnent. 5Data by coLA coveage do not meet publication standards. 'Includes workers in the fofowing industry groups for which data are not shown NO.E: Workers are disributed accorhng ao the average adiustment ftr all separately. umbher (17.000); furnihte (2,000). paper (14.000). printing (11.000); woarersineachbargaeringsduationconsidered. Deetrredwageincreasesinclude chemicals (I13.000); rubber ( ,1000); leather (t 1000). instruments (1.000); and guaranteed minmum adjustments under cost-of-nivng causes. Because of round niscellaneous manufacturing (4.000). ing. sums of individual iems may not equal totals. cent of these workers in various classifications; the balance are represented by three independent organizations-the American Nurses' Association, Police Benevolent Associa- tion, and National Education Association. Contracts for the American Federation of State, County and Municipal Employees (AFSCME) (excluding one for university workers) which were negotiated in June 1987, with reopeners in June 1989, provided 3-percent general wage increases during the first and second years and 3- to 5-percent merit increases during the first year for select classifications. The AFSCME also represents 11,000 university support personnel and the National Ed- ucation Association represents 1,500 graduate students who are employed by the State universities. Contracts for both groups expire in June 1989. The 1987-89 AFSCME contract for university employees provided a 3-percent wage increase on July 1, 1987, and merit increases ranging from 3 to 6 percent on January 1, 1988. A subsequent reopener in June 1988 yielded an additional 4.5-percent raise and established a "pretax" health insurance pro- gram. The 1987-89 National Education Association agreement for graduate students provided a 4.5-percent general wage increase. The students received another 4.5- percent raise, following a reopener in June 1988. The American Nurses' Association also negotiated a 3- year contract in June 1987; it provided a 4.5-percent general wage increase during the first anid second year. In addition, an education fund was established. The pact with the Police Benevolent Association provided a 3-per- cent general wage increase and 5-percent merit increase on July 1, 1987. This 3-year agreement also provided for wage reopeners in 1988 and 1989. The reopetter in 1988 inicreased wvages by att additiottal 3 percent retroactive to July 1, 1987. Negotiations for the Florida State governmenit workers began November 1988. Sonie of the issues involved are general wage changes, attenidatice and leave, and health insurance improvements. About 73,000 New Jersey State government employees are covered by 14 cotitracts that are scheduled to expire in 1989: 69,000 are under 12 contracts expiring in June. The Communications Workers of America (CWA) represents 45 percent of the workers, including administrative, clerical, primary and "higher level" supervisors, and professional employees. The American Federation of State, County and Municipal Employees represents 29 percent of the workers, most of whom are employed in health care and rehabilita- tion, services, or craft occupations, or are nonfaculty university employees. The remainder are represented by various other unions. In the last round of negotiations, 3-year agreements were ratified on June 20, 1986, for employees (except those in universities) represented by the American Feder- ation of State, County and Municipal Employees and on September 15, 1986, for those represented by the Commu- nications Workers of America, replacing contracts that had expired the previous June. Wages were increased 6 percent in October 1986 and 5 percent in October 1987 and 1988. Vision care benefits were increased from S25 to $35 per year. The contract for nonfaculty university em- ployees, represented by AFSCME, was ratified on January 1, 1987. It provided a 6-percent general wage increase retroactive to October 1986 and 5 percent in October 1987 and October 1988. Three-year agreements with terms identical to the CWA and AFSCME (nonuniversity) contracts were also negotiated for the other unions with ratification dates varying between June 1986 and October 1986, replacing contracts that expired in June 1986. Approximately 55,550 Massachusetts State govern- ment employees are covered by nine contracts scheduled to expire throughout 1989. Sixty-four percent of these workers are jointly represented by the Service Employees International Union and the American Federation of State, County and Municipal Employees; 28 percent by the National Association of Government Employees and the remainder by various other unions. Settlements pro- viding similar wage terms were negotiated between May 1986 and November 1987. The contracts increased wages 13 percent over the contract term, raised the evening shift differential from 25 to 50 cents, restructured grades and titles, and increased the employer contribution to dental insurance from $5 to S6 per week. It is not unusual for contract talks for State and local government workers to extenid wvell beyottd the expiratiott date of the preceding contract. In part, this reflects the time-consuming bargaining process in the public sector. G-38 Table 7. Deferred wage increases' scheduled in 1989 in major collective bargaining agreements, by month tWorkers in thousandst Effective mont Work Prindpal itdustries January - December .......... 2,8243 ................................... January ..................... 519 State and local government, construction February ..................... 207 Bituminous coal, petroleum March ..................... 90( Aprl ..................... 268 Food stores. constructeon May . .................... 129 Construction June ..................... 453 Construction. apparel. elec- trical products July ..................... 666 State and local gov_eroe construction August ..................... 269 Parcel deltveery food stores September ...................... 254 State and local govemment October ..................... 151 Apparel. State and boal gov- metrr November ..................... 38 tat December ..................... 70 Food stores ' Ecludes decreases received by 3.300 workers in May and 2500 workems in June. I Indudes 803.000 workers under Stte and oal govenmwe agr _wnents ' This ttal is sumaler thn the sum of kNicda t becaus e 237.000 workers are schedued to receive two m_ree and 26.000 are sdwdued to receive three increases in 1969. It is based on date avalbMe as of October 1, 198B, and thou may uonderate the number of workers scheduled o reoeive deened kcrae for gw etre yeer. ' No = idstryl wcooturf for a substar" pgopo.bon of workem MONTHLY LABOR REVIEW January 1989 * Collective Bargainintg in 1989 After an agreement is negotiated by the executive branch, it is frequently sent to the legislature or a special agency for appropriation of funds. There were 826,000 govern- nient workers under 190 agreements that expired prior to October 1, 1988, but for whom new contracts had not been concluded by that time. These include 193,500 work- ers in a variety of government functions in New York State. They are covered by eight contracts which expired in 1988. There also are 48,000 workers, about half of whom are in protective services, under 16 New York City contracts which expired in 1987. In addition, there were 93,000 workers under 39 agreements that expired or were reopened on October I or later. Some of these contracts may not be renegotiated by year's end. Thus, the 1989 bargaining scene in State and local government will in- clude both contracts scheduled for talks during the year and some that expired earlier. If previous years' experi- ence holds true, some contracts expiring or reopening in 1989 will not be resolved before the end of the year. Telephone communkations Contract negotiations in 1989 will cover about 531,000 workers in telephone com- munications who constitute 96 percent of the workers under major contracts in the industry. The Communica- tion Workers of America (cwA) and the International Brotherhood of Elctrical Workers (IBEW) will negotiate with American Telephone and Telgraph Co. (AT&T) for long distance operations, and with seven regional compa- nies for local operations. These companies are Pacific Telesis, us West Communications, Southwestern Bell, Bell South, Ameritech, Bel Atlantic, and NYNEX. The previous round of negotiations in 1986 was the first following the January 1984 court-ordered breakup of AT&T. Before 1986, AT&T settled with the CWA and IBEW on essentially identical terms that set a pattern for settle- ments by the two unions and other unions with the 22 "operating" companies. Following the breakup, AT&T re- tained long distance services and its telephone manu- facturing business but was divested of the 22 operating companies. These companies retained local operations and kept their identities but were formed into seven re- gional firms known as "Baby Bells." During the 1986 negotiations, some of these companies negotiated on a regional level and some on a company-by-company basis. In 1986, AT&T was the first to reach a settlement. Its separate contracts with the CWA and IBEW provided similar terms. They emphasized job security, reflecting employee concern over job cutbacks in the communications industry resulting from competition among former Bell system com- panies and new firms. Economic terms of the 3-year contracts included an initial increase in hourly pay rates of 2 percent for top rate ranges, smaller increases in intermediate steps, and no change in starting rates. In 1987 and 1988, adjustments ranged from no change in the starting step to a 3-percent increase at the top. Other terms called for suspension of the COLA clause, a reduction in the number of pay grades, and elimination of incentive pay at some manufacturing plants. When subsequent negotiations between the unions and the former Bell system operating companies were con- cluded, contract uniformity nIo longer existed. The size of the wage increases set by these contracts varied. Some provided for lump sum payments and for profit-sharing plans. Cost-of-living clauses were maintained in some contracts, but modified or suspended in others. Since AT&T was forced to divest itself of three-fourths of its $150 billion in assets in 1984, it has consolidated numerous operations, cut overall costs by 3 percent a year, slashed losses in computer operations by 70 percent through restructuring, and invested in new equipment to improve its long distance business.2 Many local service companies have sought opportuni- ties to diversify. Some have ventured into nonregulated areas like cellular service and publishing the 'Yellow Pages' outside of their regions. Regulated phone service, however, remains their major source of income. The interests of AT&T and "Baby Bells" are coming into conflict as regional companies push for regulatory freedom to enter AT&T's key markets. AT&T is attempting to keep them out of long distance operations. At the same time, it is trying to persuade the Federal Communications Commission to relax the stringent regulations on long distance rates. On January 17, 1988, in preparation for coming negoti- ations, the CWA and the 1BEW reached an agreement with AT&T for coordinated bargaining in 1989. Wages and benefits will be negotiated nationally and other aspects of the contract will be negotiated locally. There will be sepa- rate talks for "operaions" and for "manufacturing." In contrast to the AT&T negotiations, some of the "Baby Bells" will negotiate on a regional level for wages and benefits and on a local level for other issues, while others will bargain on a company-by-company basis. Recent developments in the industry-such as in- creased competition, diversification, restructuring, and automation-strongly suggest that job security will again be a paramount issue. Wage rates, lump-sum payments, COLA clauses, and profit-sharing provisions will also be addressed. Construction. Approximately 434,000 construction workers are covered by 159 major contracts expiring or reopening in 1989. These workers account for 43 percent of all workers covered by major construction industry agreements. April, May, and June will be the most active months, with contracts covering 76 percent of the work- ers terminating or reopening during this time. Although expiring construction contracts cover workers throughout the Nation, this year's bargaining calendar is concen- G-39 trated in the Midwest and West (primarily California). These two regions account for 66 percettt of the workers under construction agreements up for negotiation. In the conistruction industry, individual companies are generally members of national employer associations, such as Associated General Contractors or National Electrical Contractors Association. Local or regiottal branches of these associations represent area members in collective bargaining. Union workers typically are organized by craft-electricians, carpenters, or operating engineers, for example. Settlements in a region often have similar eco- nomic terms regardless of craft, reflecting the area's economic conditions, such as the amount of construction activity and the extent of nonunion competition. The value of new nonresidential construction increased from $81.1 billion in 1984 to $95.3 billion in 1985 but remained at around $91 billion to $92 billion each year for the next 2 years. The value for the first 9 months of 1988 was $68.5 billion, compared with $67.1 billion for the same period in 1987. While the value of nonresidential construction has not changed much over recent years, employment in the construction industry has shown some improvement. In September 1988, the seasonally adjusted unemployment rate for construction workers was 9.2 per- cent, compared with 11.9 percent a year earlier.. The seasonally adjusted employment figure for nonsupervi- sory construction workers was at 4.2 million in September 1988, up from 3.9 million in September 1987. Construction settlements ratified during the first 9 months of 1988 reflected economic trends in the industry. Nationally, they provided average annual wage adjust- ments of 2.7 percent over the life of the contract, compared with 2.5 percent allowed by the contracts they replaced. The national average, however, masks regional varia- tions. As the following tabulation shows, average annual wage adjustments over the life of the contract ranged from 0.1 percent in the Mountain region and 0.3 percent in the South Central region, where employment and mar- ket activity were down, to 4.8 percent in the Mid-Atlantic region, where the industry was strong. These figures cor- relate with trends in State employment figures for the construction industry. States that showed significant em- ployment losses included Arizona, Colorado, and Texas, which are in the Mountain and South Central regions, while States with gains included New York and New Jer- sey in the Mid-Atlantic region. California and Illinois also posted employment gains over the last year. Average an- nual wage adjustments provided by settlements reached in the first 9 months of 1988 (in percent) are shown below: All agreements .. ........ 2.7 Northeast .......... 4.6 New England ... ....... 4.2 Mid Atlantic ... ....... 4.8 Midwest ............................................... East North Centtral ................................ West North Ccntral ............................... Soutlh .................................................. South Atlantic ..................................... South Central ...................................... West ................................................... Mounitaini ........................................... Pacific............................................... Interregionial .......................................... 3.2 3.4 1.0 1.1 1.6 .3 1.9 . 1 2.4 3.2 Settlemetits reached in the first 9 months of 1988 also varied by type of activity. Contracts covering workers involved in heavy construction (other than building) pro- vided a 3.0 percent average annual wage adjustment over the contract term, compared to 2.8 percent for workers in general building construction and 2.5 percent for those in special trades. Negotiators in 1989 will note not only what transpired in 1988 but what their expiring contracts yielded. Con- struction agreements expiring or reopening in 1989 yielded an average wage adjustment of 2.9 percent per year over the term of the contract. These averages are virtually the same as the parties specified in the contract because very few construction contracts provide for cost- of-living adjustments and none has lump-sum payments. As with 1988 settlements, there were regional differences, with adjustments ranging from 0.6 percent annually in the South Central region to 5.3 percent in New England. The following tabulation shows average annual wage ad- justments under contracts expiring in 1989 (in percent): All agreements ... ......... 2.9 Northeast ............ 4.3 New England ... ......... 5.3 Mid Atlantic ... ......... 3.8 Midwest ............ 2.9 East North Central .... ........ 3.1 West North Central .... ........ 2.6 South .................................................. South Atlantic ..................................... South Central ...................................... West ................................................... Mountain ........................................... Pacific............................................... Interregional .......................................... 1.0 2.5 .6 2.2 2.1 2.3 3.5 The wage adjustments provided by expiring contracts also varied by type of construction. Contracts for special trades yielded annual wage adjustments of 3.3 percent, compared to 3.2 percent for general construction and 2.3 percent for heavy construction (other than building). The average duration of construction settlements reached in the first 9 months of 1988 was 29.7 months, compared with 24.9 months for the contracts they re- placed. In part, this difference reflects the comnioti practice 2 atid 3 years ago of delaying finial contract settle- ments (while continuing to wsork under the terms of the last agreements) because of uncertaitity about economic conditions. Whets a tiew contract was finally reached G-40 MONTHLY LABOR REVIEW Janiuary 1989 * Collective Bargaininig in 1989 (sometimes monlths later), it specified an expiration date oni anl anniversary date of past expirationis, shorteninig the contract durationi. This lag in cotitract conclusionis was common practice in 1986 and 1987 but was less pro- nouniced in 1988. Sixty-five percent of the workers cover- ed by contracts expiring or reopening in 1989 are under agreemenits that were reached in 1986 or earlier, 24 per- cent are under agreemenits negotiated in 1987, and the balance are under 1988 settlements. Recent contracts have reflected efforts by unionized employers and their unions to compete with nonunion conitractors. To match a practice used by nonunion con- tractors, some agreements in the last few years have in- cluded "helper" classifications which allow lower wages for those who do not fully perform the skilled work of the craft. Some agreements allow contractors to continue paying the old wage rates on projects begun prior to the new contract. Others have dual wage scales with lower wage rates for small projects in which nonunion competi- tion is more prevalent. Although nonunion competition will influence the terms of many construction agreements this year, the economic state of the industry locally and prospects for the future will undoubtedly be the overrid- ing concern on both sides of the bargaining table. Wholesale and retail trade. Some 244,000 workers in the wholesale and retail trade industry are covered by 55 major contracts that are scheduled to expire or have re- opening provisions next year. About 178,000 of these workers are covered by 31 major food store contracts. The balance of workers under expiring agreements in the industry are employed in eating and drinking places, de- partment stores, drug stores, and automotive dealers, or in wholesale trade. Seventy-three percent of the workers under agreements in trade expiring in 1989 are represented by the United Food and Commercial Workers. The remainder are repre- sented by a variety of unions including the Hotel Employ- ees and Restaurant Employees; the Retail, Wholesale and Department Store Workers; the International Association of Machinists; and the International Brotherhood of Teamsters. The trade agreements that are expiring or reopening in 1989 provided wage adjustments averaging 2.4 percent a year over the contract term. There were no industrywide pattern-setting agreements. Settlements varied by region. Bargaining over food store agreements will dominate negotiations in trade. Workers covered by these agree- ments account for 36 percent of those under major food store agreements. Expiring food store agreements yielded average annual adjustments (including COLA'S through September 1988) of 1.9 percent over their term. They varied substantially from decreases of 2.6 percent to gains of 6.6 percent. Contracts for three-fifths of the workers called for lump-sum payments instead of, or in conjunc- tioni with, increases, or to offset decreases in base rates of pay. For contracts with lump sums, the annual wage ad- justments (excluding lump-sum amounts but including aniy cost-of-living increases) averaged 0.4 percent, com- pared with 4.1 percent for contracts without lump-sum payments. Besides reviewing the results of their expiring agree- ments, negotiators will note recent negotiations in the industry. Settlements providing lump-sum payments cov- ered one-half of the food store workers for whom new contracts were concluded during the first 9 months of 1988. Wage adjustments under these settlements averaged 1.1 percent over the term, compared with 4.1 percent in settlements without lump-sum provisions. Overall, ad- justments in food stores averaged 3.1 percent. Many contracts reached in the early 1980's in trade es- tablished two-tier wage or benefit systems. Some had been considered permanent and others temporary. Recently, two-tier structures have been modified or eliminated be- cause of problems associated with them, for example, morale and high turnover. It is likely that two-tier struc- tures will be on the table in many negotiations in trade this year. In addition, negotiators will be concerned with the re- placement of national chains by regional ones, the growth of nonunion competition, and the practice of leveraged buyout, whereby some of the assets of the company being acquired may be sold to help pay the cost of the takeover. Food store chains are particularly vulnerable to leveraged buyouts because they consist of many small units which can be sold individually to another chain or operator. Many leveraged buyouts have led to the sale of real estate, store closings, and job losses. This has prompted union negotiators to seek contract provisions assuring job secu- rity in the case of buyout or takeover. The use of part-time workers is another issue that may be addressed at the bargaining table. Part-time workers are usually paid less and receive fewer benefits than their full-time counterparts, so their use helps keep employers costs down. However, this practice reduces opportunities for full time workers to work overtime. Longshore. Contracts covering about 19,000 Atlantic and 7,000 Gulf Coast longshore workers represented by the International Longshoremen's Association (ILA) will expire on September 30, 1989. Another contract covering 2,000 longshore workers on the Great Lakes expires on December 31, 1989. Bargainers will have to deal with continuing problems: (1) competition among the ports for scarce tonnage; (2) inroads by non-ILA ports; and (3) re- duced shipments of some types of cargo (particularly in the South). The parties will also have to deal with the thorny prob- lem of handling containerized cargo, supposedly resolved in their 1959 conitract, when they agreed that ILA nem- G-41 bers would pack anid unpack shipborne conitainers wvithin 50 miles of a port. Their resolution has been challenged in the courts anid by the Federal Maritime Commission, however, anid the issue is still in litigation. Historically, the [LA negotiated uniform wage terms for Atlantic and Gulf Coast ports. However, this year's expir- ing pacts, settled in 1986, contain wage terms that differed from port to port, reflecting the need to adapt to different local conditions. In general, contracts in the southern ports provided pay cuts while those in northern ports yielded pay increases. 1. Southern ports. Although contracts were not to ex- pire until September 30, 1986, the West Gulf Maritime Association and 5,000 [LA members reached agreement on wages and local issues in April 1986. Southern employ- ers had argued they were unable to compete effectively with nonunion labor, which was more prevalent in the South than in the North. A depressed oil market and reduced grain shipments also complicated bargaining problems. The 1986 pact provided for pay cuts of $3 an hour for handling break bulk cargo (that is, individual goods) and $5 an hour for bulk cargo, effective October 1, 1986. The Guaranteed Annual Income program was elim- inated. This program had guaranteed ILA members a specified number of hours of pay each year even if work was not available. This sometimes amounted to a full year's pay. Work gang sizes and pay for holidays were reduced. The South Atlantic Employers Negotiating Committee and the ILA negotiated a similar contract for 3,000 work- ers in May 1986. It provided for a $3-an-hour pay cut for handling both break bulk and bulk cargoes, and a reduced Guaranteed Annual Income. Other smaller area agree- ments were patterned after these settlements. 2. Northern ports. Negotiations on the North Atlantic Coast began in June 1986 for about 15,000 iLA workers. Negotiators included the New York Shipping Associa- tion, the Boston Shipping Association, and the Carriers Container Council. The Council of North Atlantic Ship- ping Associations (representing the ports of Baltimore, Philadelphia, Hampton Roads, and Providence) had joined in the negotiations initially but broke away from the talks in July. Settlements were not concluded until November 1986, although various tentative agreements were reached earlier. The tentative "master" agreement for 7,700 workers in New York and about 500 in Boston, reached in September 1986, provided a 2-year wage freeze and a $1-an-hour pay increase in the third contract year. It increased employer payments to health and welfare funds by 20 cents an hour (to $2.70) and to pension funds by 25 cents (to S4) in the third contract year. As the September 30 expiration date neared, however, local issues had not been resolved, and the Council of North Atlanitic Shipping Associations ports had niot agreed to a tentative "master" agreement. The New York and Boston Shipping Associationis proposed a 45-day ex- tensioni of existing agreements, but the proposal was rejected. On October 1, longshore workers from Maine to Virginia went on strike. They returtned to their jobs on October 3, after all employer groups agreed to a 45-day extension to last until November 17. Two days later, the New York Shipping Association reached tentative agree- nient on "local" issues. The Council of North Atlantic Shipping Associationis reached a tentative "master" agreement with the ILA for about 6,800 workers in October 1986. Terms were similar to the pacts for New York and Boston except for a $1 -an- hour pay cut for handling bulk cargo. In November, a coastwide ratification of "master" agreement terms was approved by workers in New York, Hampton Roads, and Boston. Other Northeast ports sub- sequently settled on similar terms. Bargaining with the [LA for a new master agreement to replace the contracts set to expire in 1989 began on Sep- tember 14, 1988. These talks involved eight of the nine ports (with the ninth as an observer) and were requested in July by iLA President John Bowers in anticipation of an unfavorable court ruling regarding "Rules on Contain- ers." These rules had sought to preserve work historically performed by longshore workers, within 50 mile zones, for iLA members. The contract provided for a reopening should the "Rules on Containers" be abrogated in court. Concerned over the potential abrogation of the "Rules on Containers," the employers agreed to joint bargaining in hopes of overcoming this obstacle as well as dealing with the complex issues facing the industry.' Subsequently, the U.S. Court of Appeals for the Dis- trict of Columbia has upheld a decision by the Federal Maritime Commission that invalidated the rules, but the rules continue to be enforced pending a hearing by the Supreme Court During the next round of talks, the employers are ex- pected to focus on ways to increase productivity, for example, changing work rules and reducing gang size. The union will attempt to improve wages and benefits. The employers have already proposed a 5-year pact, con- trasted with an 18-month pact sought by the ILA. Health care About 89,000 health service workers are under major collective bargaining agreements scheduled to expire in 1989. Of these, 45 percent are covered by the agreement between the League of Voluntary Hospitals and Nursing Homes of New York and Local 1199, Drug, Hospital and Health Care Employees, a unit of the Retail, Wholesale and Department Store Union. This agreement, which covers 40,000 workers at 34 hospitals, niursinig homes, and 13 other health care facilities in New York City, expires in June. Terms of the League contract can be G-42 MONTHLY LABOR REVIEW January 1989 * Collective Bargaininig in 1989 expected to set the pattern for an additionial 15,000 Local 1199 niembers who work at 47 non-League institutions that have "nie too" agreements. In addition, in the last rounid of bargaining, settlement terms similar to the League's were provided in contracts covering 6,500 work- ers at five other hospitals-four operated by the Roman Catholic Archdiocese of New York, and Beth Israel Med- ical Center-anid in a contract with the New York Association of Voluntary Nursing Homes covering 5,000 employees at 10 facilities. The League-Local 1199 contract covers workers in many diverse occupations. These include: service work- ers-attendants, and kitchen and laundry workers; main- tenance workers-painters, plumbers, and electricians; clerical staff-clerks, secretaries, receptionists; and techni- cal and professional staff-x ray, laboratory, and operating room technicians, licensed practical nurses, social workers, and dietitians. The League's 1986 agreement called for a 4-percent wage increase in the first year, and additional wage in- creases in the second and third years, equal to 4 percent and 5 percent, respectively, of the wage rate at the begin- ning of the contract. Because of a surplus in pension funding, the hospitals' pension payment was reduced to 7 percent of base pay from 8 percent of gross pay, and pen- sion benefits were increased 10 percent for future retirees. Past retirees received a one-time lump sum payment of 10 percent of their annual pension benefit. In a key area of work scheduling, the 1986-89 agreement retained the prior agreement's provision that allowed employees to be off every other weekend, regardless of work schedule. This issue was a serious point of contention during the 1984 negotiations. Other health care bargaining will be for 18 major con- tracts covering hospitals, nursing homes, medical clinics, and other health facilities throughout the country. Em- ployees will be represented by the American Nurses' Association (registered nurses), the Service Employees In- ternational Union, the United Steelworkers of America, and the National Union of Hospital and Health Care Em- ployees (which broke from the Retail, Wholesale and Department Store Union in 1984). Bargainers in health care will have to address two op- posing pressures: third party cost-control efforts and labor shortages. The industry has been under constraints from both State and Federal Governments to hold down costs and to change methods of pricing health care to patients. The Social Security Act was amended October 1983, establishing a prospective payments system for health care for those covered by the Federal Medicare program, and the State-administered Medicaid program. Under this system, the governments will pay only speci- fied predetermined amounts for certain procedures for hospital inpatients. Labor costs are included in these pay- ments. Costs above the reimbursed amounts must be absorbed by the health facility. If, however, costs are be- lowv the amount, the differenice is retainied by the facility. While 40 percent of health care is paid by government through Medicare anid Medicaid programs, reimburse- ments have not kept pace with the cost of providing care. To avoid financial losses, hospitals are having to increase their fees to privately insured patients to make up for losses on government-insured patients. On the other hand, institutions have had to loosen their purse strings to hire and retain health care employees. More of these employees are needed because of the increas- ing health care needs of an aging population. In addition, more highly trained workers are needed because of the increasing use of new and sophisticated technologies. Many health care jobs, especially nursing, traditionally had been held by women. However, with other careers open to them proportionally fewer women than in the past have been attracted to health service occupations. In addition, the negative aspects of the field-shift work, irregular workweeks, and sometimes unfavorable working conditions have caused shortages of workers. This has been especially true in the nursing profession and in large hospitals in urban areas on both coasts. Primary metals About 107,000 workers employed in the primary metal industries are under major agreements that expire in 1989. About 80,000 of these workers are employed in steel production and 25,000 in aluminum manufacturing. They account for one-half of all steel- workers and three-fourths of all aluminum workers covered by major agreements. 1. Steel. The last round of negotiations in the steel in- dustry began in 1986. It was marked by the breakup of "coalition bargaining" that had been the industry pattern since 1956. Prior to 1986, the United Steelworkers of America had negotiated uniform contracts with the larg- est steel companies which bargained together as the Coordinating Committee Steel Companies. These con- tracts set the pattern for subsequent contracts with nonmember companies. Starting in 1986, each steel company negotiated sepa- rately with the Steelworkers and the resulting settlements no longer all had the same expiration date. Settlements occurred between April 1986 and January 1987. A con- tract between the Steelworkers and usx Corp. (formerly a contract pattern setter), for example, was not reached until the conclusion of a 6-month walkout in January 1987; it does not expire until 1991. Steelworkers con- tracts with three companies account for three-fifths of the workers under stcel industry agreements slated for negoti- ations in 1989: Bethlehem Steel (30,000 wyorkers), Ilnland Steel (11,500 workers), anid National Steel (7,200 work- ers). Each of these agreements expires oni August 1, 1989. As a result of fragmenited bargainiing, the ternis of the last set of steel industry colntracts also varied by company. G-43 Two-thirds of the workers under expiring steel industry contracts took pay cuts ranging from 0.9 to 5.4 percent annually over the contract term and averaging 2.5 percent annually. One-fourth of the workers had their wages fro- zen over the contract term. Contracts providing either wage cuts or a wage freeze typically provided an assort- ment of profit-sharing and stock option plans to try to offset the decreases or compensate for wage freezes. The remaining workers under steel agreements reached in 1986 received wage increases; they were employed by spe- cialty steel manufacturers. The June 1986 agreement between Bethlehem Steel and the Steelworkers cut wages by 8.09 percent, suspended the cost-of-living adjustment clause, and eliminated three holidays. To help offset these cuts, a profit-sharing plan was introduced that provided cash or shares of a new issue of dividend-bearing stock. The profit-sharing plan distributes 10 percent of profits up to $100 million and 20 percent of any higher amount among employees. If these payments did not equal the wage and benefit cuts, the difference would be paid in shares of stock. The parties also provided for local talks to develop cash distributions based on tonnage shipped, work hours per ton, product quality, and nonlabor cost reductions attributable to workers. The 1986-89 accord reached with the Inland Steel Corp. provided no wage changes, and suspended the cost- of-living adjustment clause, but established a profit-shar- ing plan for hourly employees. Under the 1986 National Steel contracts, workers sus- tained a 42-ent cut in wages; the 1 1-cent cost-of-living adjustment that had gone into effect in February 1986 was eliminated, and the cost-of-living clause was sus- pended. In retum, a profit-sharing plan was introduced. This plan provided a minimum annual bonus ranging from 50 cents per hour worked if the company loses money, up to $1.75 per hour if net income is $300 million or more. Workers are also eligible for quarterly bonuses based on increases in productivity. Separate plans at the company's three locations took into account: (1) in- creased local tonnage shipped; (2) local reductions in the labor force; and (3) corporatewide cuts in the labor force. The economic climate for the 1989 contract talks has improved since the last agreements were negotiated. Ac- cording to the American Iron and Steel Institute, the steel industry overall earned a small profit in 1987-the first aggregate net income since 1981.4 This economic tum- around results from many factors including (1) company reorganizations; (2) the modernization, phasing out, or closing of obsolete plants; (3) cutbacks in exports to the United States under Voluntary Restraint Agreements with European countries and Japan; and (4) labor-man- agement cooperation aimed at improving company profits while at the same time preserving jobs. For the first 10 months of 1988, the industry worked at 89 percent of capacity, compared with 77 percent for the same period in 1987. The results of the profit-sharing plans have been mixed, depending on the specific provisions, as well as the finan- cial state of the company. Some plans have generated only modest returns to workers while others have more than offset the cuts provided by the 1986 pacts. Uncertainty about the future, however, will continue to plague the industry. Steel is overproduced, in large part because of the expansion of steel facilities in third world countries. The U.S. companies will be competing against these low cost producers as well as subsidized producers in developed countries. These factors will undoubtedly be reflected in bargaining. 2. Aluminum. Four major contracts expire on June 30, 1989. The Aluminum Co. of America (ALCOA) will nego- tiate two contracts: one with the Aluminum, Brick and Glass Workers for 8,000 workers, and another with United Steelworkers of America for 7,000 workers. Simi- larly, contract talks are scheduled for Reynolds Metals Co. with the Aluminum Workers for 6,000 workers and the Steelworkers for 4,000 workers. During the last bargaining round, in 1986, settlements were preceded by a 4-week strike by both unions at ALCOA. The unions coordinated their bargaining with two companies but limited their June walkout to ALCOA because of the company's "attitude" and because of its position as the "major company in the industry," accord- ing to a Steelworkers' representative. The pacts were all settled in July with similar terms. They provided no general wage changes over the contract term. The quarterly cost-of-living adjustment clause was changed from providing adjustments of 1 cent for each 0.26-point change in the Bureau of Labor Statistics' Con- sumer Price Index (cpi-w) to I cent for each 0.3-point change in the index, but only after the index had risen by 3 percent each year. In addition, cost-of-living increases that had not been incorporated into the wage rate were reduced. The contracts also eliminated extended vaca- tions of 10 weeks once every 7 years and the vacation bonus. In mid-1988, the parties began negotiations to replace pacts expiring in 1989.5 This was the first time they had agreed to meet so far in advance of expiration in hopes of reaching an early accord. Tentative settlements with Reynolds Metals Co. and Alcoa were reached in early December 1988. Aerospace. Contracts covering approximately 86,000 aerospace workers will expire in the spring and fall of 1989.6 These workers make up 41 percent of all workers covered by collective bargaining agreements in the aero- space manufacturing industry. The Boeing Co. has expiring contracts with two unions-The International G-44 MONTHLY LABOR REVIEW January 1989 * Collective Bargaininzg in 1989 Association of Machinists and Aerospace Workers (Ma- about old airplanes, and tougher noise regulations are chinists) which represents 40,000 workers, and The United contributing towards the decision by airlinles to replace Automobile, Aerospace and Agricultural Implement some of the old airplanes with bigger and better ones. Workers of America (uAw), which represents 3,000 work- The backlog of unfilled orders for aerospace products ers. Lockheed Corp. will negotiate three contracts for rose from $139 billion in August 1987 to $160.7 billion by 26,600 workers represented by the Machinists. Other com- August 1988, ensuring continued production activity for panies scheduled for bargaining in 1989 are McDonnell the next few years.7 Overall sales, however, are expected Douglas, Avco Corp., United Technologies, and Teledyne to level off in 1988 because of a decrease in orders for Industries. military products. The 1986 settlements between Boeing and the Machin- Employment in the aerospace industry has been about ists set the pattern for the other contracts in the industry. 1.3 million workers for each year from 1986 through The Boeing-Machinists accord increased the size of lump- 1988. In 1988, about one-half of these workers were em- sum payments provided in the previous accord. Under the ployed in the production of civilian and military aircraft, prior contract, negotiated in 1983, Boeing workers had one-fifth in the manufacture of missiles and space vehi- received lump-sum payments each year based on 3 per- cles, and three-tenths in making other related products. cent of their previous year's earnings. The 1986 contract Recent concerns about the size of the defense budget have provided lump-sum "productivity payments" each De- generated the expectation that spending on military air- cember based on pay for all hours paid for during the 12 craft will be reduced. The Aerospace Industries Associ- months ending the previous October. The payment in De- ation of America has estimated that this would result in a cember 1986 was 12 percent of pay; in December 1987 4.9 percent work force reduction in the military aircraft and 1988, it was 5 percent of pay. production sector in 1988.8 The contract provided for quarterly cOLA adjustments It is expected that negotiations in 1989 will be con- to be offset by a 40-ent "prepaid cOLA." As of Septem- ducted on a company-by-company basis. Bargaining will ber 30, 1988, the 40 cents had been offset and the COLA be influenced by such factors as a potential work force clause had yielded an additional 31 cents; further COLA reduction stemming from automation, increasing foreign increases may be generated by the four remaining quar- competition for aerospace/aircraft contracts, and future terly reviews scheduled before the contract expires in defense spending. Companies will attempt to hold down October 1989. The cOLA clause in the 1986 agreement costs to stay competitive and to adapt to any defense restored coverage to all employees; under the previous budget reductions. The companies, therefore, may try to contract, lower paid workers had been excluded from cov- maintain lump-sum provisions and two-tier wage struc- erage. The 1986 contract also permitted employees in tures, while the unions will probably seek wage rate lower grades to increase their skills through company- increases and the elimination of dual wage structures. financed courses. The aerospace industry has undergone many changes in IN SUMMARY, the issues facing this year's bargainers are recent years. Competition and deregulation in air trans- as diverse as the industries involved in contract talks. Job portation have opened up new commuter routes and security will be a primary concern in some situations, created demand for new aircraft. In addition,.many other while improvements in wages and benefits will be the factors including lower fuel prices, increased safety fears most important issue in others. O -FOOTNOTES 'Beginning in mid-1989, the Bureau is planning to publish a new 5For a detailed discussion of developments in aluminum industry measure of adjustments in compensation, including lump-sum pay- contract talks in 1988, see "Collective bargaining," p. 30. ments, for major collective bargaining settlements. 6For a detailed discussion of aerospace negotiations in 1988, see "Col- 2See John J. Keller and associates, "AT&T: The Making of a Come- lective bargaining," pp. 36. back," Business Week, Jan. 18, 1988. 3For a more detailed discussion of the containerization issue, see 'U.S. Bureau of the Census, "Manufacturers, Shipments, Inventories George Ruben, "Collective bargaining and labor management relations, and Orders," August 1988, Series M-3. 1988," this issue, pp. 25-39. 'Carl Pascale, "1987-1988 Aerospace Industry Enmployment Survey" 'Annual Stuiisnicol Report for 1987 (American Iron and Steel Insti- (Aerospace Industry Association of America, Inc.). tute, 1988). G-45 sI| v Jo United States | V V ;> ~~~Department & of Labor Bureau of Labor Statistics Washington, D.C. 20212 Historical, technical data: USDL: 89-45 Alvin Bauman (202) 523-1143 Douglas LeRoy (202) 523-1921 FOR RELEASE: 10:00 A.M. Media Contact: Friday, January 27, 1989 Kathryn Hoyle (202) 523-1913 UNION MEMBERSHIP IN 1988 Approximately 17 million wage and salary employees in the United States were union members in 1988, the U.S. Department of Labor's Bureau of Labor Statistics reported today. (See table 1.) The number of union members has been virtually unchanged since 1985, while the nation's employment has been increasing. Therefore, the proportion of the natior&'s wage and salary employees who are union members, at 16.8 percent in 1988, has-continued to edge downward, from 17.0 percent in 1987, 17.5 percent in 1986, and 18.0 percent in 1985. Union membership as a proportion of wage and salary employment has been drifting down over the last 4 decades, but for different reasons. Between 1980 and 1985, the membership proportion dropped because the number of union members fell while total employment increased. Earlier, the number of union members increased, but employment rose at a faster pace. In 1988, union members made up 37 percent of employment in government (Federal, state, and local), compared with 13 percent in private industry. Among major private industry groups, transportation and public utilities had the highest membership proportion--33 percent. Membership proportions also exceeded the overall private industry average in manufacturing (22 percent), construction (21 percent), and mining (19 percent). The other private industry groups (wholesale and retail trade; services; and finance, insurance, and real estate) had membership proportions of less than 7 percent. G-46 There were 10.7 million union members in private industry and 6.3 million in government. The largest number of private industry members, 4.5 million (42 percent) were in manufacturing. Despite their below-average membership proportions, trade and services combined had almost 2.8 million members, 26 percent of all union members in private industry. The major occupational groups with the highest membership proportions were operators, fabricators, and laborers (28 percent) and precision production, craft, and repair workers (27 percent). (The operators, fabricators, and laborers group includes machine and vehicle operators, assemblers, cleaners, and helpers. The precision production, craft, and repair group includes mechanics and construction and other skilled trades workers.) However, the four other major occupational groups, with lower union membership proportions, together accounted for over one-half of all union members. Union membership proportions were higher among men (20 percent) than women (13 percent) and among blacks (23 percent) than among either whites or Hispanics (16 percent each.) Twenty-two percent of workers age 35 to 64 and 15 percent of the 25 to 34 year olds were union members. Workers who were 65 or older, on the other hand, had a membership rate of 9 percent, and those age 16 to 24 had a rate of 6 percent. In addition to the 17.0 million wage and salary employees who were union members, there were 2.2 million workers who were represented by a union but were not union members; just over one-half of these workers were in government. These union membership and employment data are from the Current Population Survey. (See Explanatory Note.) The Current Population Survey also provides data on median weekly earnings of full-time wage and salary employees by union membership status. The survey shows that, in 1988, full-time wage and salary employees who were union members had median usual earnings of $480 per week, compared with $356 per week for those who were not union members. These averages reflect a variety of influences, including coverage by a collective bargaining agreement and variations in the distribution of union and nonunion workers among occupations and industries. More detailed information on earnings by union membership status from the Current Population Survey will G-47 appear in the January 1989 "Employment and Earnings" and the February 1989 "Current Wage Developments," monthly publications of the Bureau of Labor Statistics. Data on average hourly compensation (wages and benefits) levels for all union and nonunion employees in private industry in March 1987 and 1988 appear in "Employment Cost Indexes and Levels, 1975-88," BLS Bulletin 2319. Explanatory Note About the Data The union membership estimates presented in this release are obtained from the Current Population Survey (CPS), conducted by the Bureau of the Census for the Bureau of Labor Statistics. The CPS provides estimates of agricultural and nonagricultural wage and salary employees identified as union members or as being represented by a union at their work place, regardless of whether they were union members. Union members include employees belonging to traditional labor unions or to employee associations similar to lab6r unions. The membership estimates exclude workers who are self employed, retired, or unemployed. The CPS provides estimates (e.g., of union membership) based on a scientifically selected probability sample, rather than a census of the entire population. These sample based estimates may differ from the results obtained from a census of the population. The sample used was one of many possible samples, each of which could have produced different estimates. The variation in the sample estimates across all possible samples that could have been drawn is measured by the standard error. The standard error is used to calculate a "confidence interval" around a sample estimate. The BLS frequently uses 1.6 times the standard error of the estimate to create approximate 90 percent confidence intervals in its analysis of CPS data. If different samples were selected to estimate the population value (e.g., union membership), the 90-percent confidence interval would include the true population value approximately 90 percent of the time. For example, in 1988, the estimate of union membership is 17,002,000, and the estimated standard error is about 127,000. Hence, we are 90 percent confident that the interval between 16,798,800 and 17,205,200 (or 17,002,000 4- 1.6 x 127,000) includes the true population value for union membership. Standard errors for all estimates included in this release are available upon request from the Office of Compensation and Working Conditions, Bureau of Labor Statistics, Washington, D.C. 20212. G-48 Table 1. Employed wage and salary worksers by age, sex. race. Hispanic origin, lull- or part-time status. and union affiliation uSteodm h, WVoa}.) 1987 190_ Motboes. of Rsapwsentod Mombtes of tcptesented unions ty uons T ons' by an.oos' Agn saul. aco. prspa-tme sotg.t Total Totl and uloll, to t t Ioo- atstu em- Petconl Peacent at- Percent Petoent p Toyld Total of o ploed T otal Of Tout of ployad po P d ployed SEX AND AGE Total, 16 yaws and over99.303 16.913 17.0 19.051 192 101.407 17.002 16.9 19.241 19.0 16 b 24 y|m 19.53 1,299 6.6 1.538 7.9 19.469 1.206 62 1.457 7.5 2S as and ovr 79.749 1S.614 19.6 17.513 22.0 69.69 15.795 19.3 17.764 21.7 25 b 34 ers 30,197 4.752 15,7 5436 10 30.686 4,578 149 sm 17.0 351 44 yam 23.443 5.060 21.7 5,664 242 24.32 5.178 212 5656 24.0 45 lo 54 yws 14.716 3.442 23.4 3621 26.0 15.466 3.706 24.0 4.107 26.6 SS la 6Syws 9.349 t142 22.9 2367 25,3 9.237 Z.139 23.2 2.371 25.7 65 ys and over 2.042 198 9.7 224 11.0 Z162 194 9.0 22S 10.4 Men, 16 yewsd ovew S2936 11.071 20.9 12.144 22.9 53,912 11.019 20.4 12.132 22.5 16 1 24 yws 10.018 660 .6 991 9'9 10.007 768 7.7 i11 9.1 2S yws and ov 42.920 10211 23. 11.153 26.0 43905 10.2S1 23.3 112 25.6 251 34 yws 16,S17 3,112 166 3.460 20.9 16,767 3.027 16. 3,35 2Q0 35 lo 44 yws 112365 3.29S 26.6 3,79 26. 12.631 323 2S.9 3.2 26.3 451 5 4 )ews 7J04 2.256 8 69 2,442 31.3 6.1S4 2Z363 292 2571 31.5 55 to 6S pws -.139 1.43S 27.9 1,546 30.1 5.021 1.409 231 1,539 30.7 Esyasandovaw 1.094 111 102 124 11.4 1.132 106 9.6 124 11.0 Women, 16 yws and over 46,36S 5.642 12.6 6,907 14.9 47.495 .592 12.6 7.109 1S.0 16 b 24 yas 9.536 440 4.6 547 S.7 9.463 4 4.6 S46 5.8 2S yaw id oaver 36.,29 S.402 14.7 6,360 173 386033 SS,44 14.6 6S.3 17.3 25 0 34 yas |13,60 1.640 12.0 1976 14.4 13,631 1,S 11.1 1,666 13.4 3S o 44 yaws 11.079 1.766 16.1 06 16.6 1,5 51 1.55 16.1 2.226 19.3 45 10 S4 yas 6914 1.183 17.1 1.376 19,9 7.314 1,323 161 1,S37 21.0 55 10 65 s 4,209 707 16. 619 19.5 4.216 730 17.3 632 19.7 6S yas and ova 947 67 9.1 100 10.6 1,030 65 63 109 9.7 RACE, HISPANIC ORIGIN, ANO SEX While. 16 Yas nd over 865.52 13.972 163 15.712 64 86.176 13.932 16.0 15.7S9 18.1 Men 46.079 9.407 20.4 10.288 2Z3 46.783 9.294 19.9 10.210 21.8 Women 39.446 4,S65 11.6 5.424 13. 40.393 4.638 11.5 S.549 13.7 Dlad 16 yaws and ovae 10636 2,445 22.6 Z769 2S.S 11.176 2.SS9 22.9 2.689 25.9 Men __ __, _ 5.329 1.361 25.9 1.S31 28.7 5.502 1,438 26.1 1.601 29.1 Women _ -- 5.509 1.065 19.3 1.236 22.S S.674 1.121 19.8 1.297 22.9 Hispancongria 16 yws and over ___ 7.215 1.234 17.1 1.371 19.0 7.623 1220 16.0 1.353 17.7 Men 4,315 659 19.9 936 21.7 4,535 837 18.5 913 20.1 Women _ 2.900 374 12.9 434 15.0 3.088 384 12.4 440 14.3 fULL- OR PART-TIME STATUS' Ful-tise workers _ .. ... .._....... ... 0.9836 15.670 19.4 17,567 21.7 82.692 15.773 191 17.753 21.5 Part-t.oooe wteos_ ............ __.___ ...._ ._ .... - 10.467 1243 6.7 1.464 9.0 180716 1.229 6.6 1.499 6.0 Oata etfeo to neombets of a labor un;on ot an eavnoyeo lssociaton NOTE: Data nefet to 1ne sole at pnncpal job of fun- and part-tbe stntlar to a unton nwotoets. Excluded are selfemyptoyed woetrts wnOse busnesses ate Oaau tetet to atetobets of a laotx union ax an employce association incorpotated athbough t tey lechnicany qoatldy as wage and salary sOtOtso simdiar to a union as -en as wotems who fetoon no union aIttItaton but Detad fot the abovc tace and tspanrc-tgjn g.oups wi0 not sum to totals -5osC jobs ate coveted by a uor.o at n ermntoyee associatton conifact. because data fo Ito colet taces g.oup afe t,ot presented and t.sparocs ItIe 6sItocton b-,tIeen 'u"- and pint-tine wottets is baseda on toors ate tncluded in bots Itte wfle and tAack poouaton grouPs. uSa311Y -.ott,d. G-49 Table 2. Employed wage and salary workers by occupation, industry. and union affiliation |t m- 1987 1988 mbo rs of Repesented Members of Reosantdo. trunons' by anions' unons' by uens' Occuatione -d ;osry Toa Toa eM. Percent Peroont em Peroent Percet Plr TOtal Total Of p To al Tota l Ploy_o yed Ooy-d I po- OOCUPATO Sales Ploksol l I-rlf SYeaoyl_1 m 1 -.- Pedecir $em ince ansi p 54nderp0= ra G c Pied"en padclim asand - O aM pwalo&Ii e ,a nd -a ea - o de Tr go peIla6ene -d-- 'hi ataehgoem q,d es - rF - -e de InSe -. aidl -I _ -1 Abdhwd oqkwgeadd wyIw oAm OWst Nam o lb oods -W . . ___w. ifafA l wagIdmel wage and w a- QeS t M"iulm _`P& _ " _ Iw DA* geoo& MNC" agoods UiTrancen. and ptdI rces Trafeartaion Com lmatdCedon a Nd pede a666n Wholesale and fwb trade____ Services ___________________.. GRaed ade .___..._ . w ____.__._____. 23. 10770 12C07 31.J01 3.243 17.696 13.676 1.690 11.567 16.920 4.666 1.763 3.512 726 2.7866 3.265 341 612 2.311 1.9533 725 3.132 4.956 2.423 1.349 1.183 96 15.0 6.7 22.1 10.3 10.5 5.6 13.1 14.1 361 10.3 27.1 29.3 326 31D 2S; . I 1.469 33 22 0S.3 10626 13.4 782 143 163 SllS2 1.060 210 20.235 4.691 23.2 12.005 29 24.7 31 1.722 20.9 5.619 1.947 33.5 3.274 1.051 32.1 2.545 697 352 20.401 1.440 7.1 3.935 330 8.4 16.466 1.110 6.7 6.7 t 18 2.3 21.965 1.387 6.3 16.641 6.055 36.0 4.286 944 3.342 3>2 3.666 412 691 2.765 2.167 765 3.364 5134 2.9 1.426 1.266 113 37 llESO 153 1.123 5.069 3.162 1.U46 2.106 1.113 993 1.S72 359 1.213 217 1.673 7.164 18.3 265 122 12.7 64 15.6 1S8 41.7 11.6 26.1 3CL9 322 32. 270 6.4 14.6 222 24.7 26.3 22.4 362 34.0 39.0 7.7 9.1 7.4 3.2 7.6 42.5 24.369 11.337 13.032 32271 3.462 11.019 17.790 14.178 1.969 12.209 11.766 17010 7.679 4,416 4.713 1.813 1.492 62.741 711 5.193 20.43D 12.170 6.053 3.412 2.640 20.597 3.873 16.724 6.812 22.944 17.175 3.64 73 2.64 3.31; 39' Sr; 2X 76! 1.224 3.164 2. 1.156 71 10.674 133 1.096 4.516 2.875 1.641 2Coo 1.104 897 1.386 290 1.095 178 1.365 6.298 4 15.0 4 6.5 22.3 2 10.3 2 11.3 5.3 3 13.1 1 14.0 5 3z9 1 10.O 26.9 5 21L3 r 2965 1 3Q1I S 24.6 1 42 2.0 1219 16.7 21.1 22.1 -23.6 19'.9 33.1 32.3 34.0 6.7 7.5 6.6 2.6 5.9 36.7 4.47C 3.493 3.976 46! 666 Z221 2w225 1.367 3.374 5.105 2.453 1.407 1.245 61 13 6 26 12.3 13.5 6.2 15.8 15.7 42.6 11.4 26. 30.0 31.1 31.6 26.4 S5. 35 2.4 11.723 14.2 146 20.5 1.151 222 4.654 23.8 31065 25.4 1.79 21.3 2.144 3S.4 1.153 33.8 992 37.6 1.559 7.6 336 6.7 1.223 7.3 238 3.5 1.631 7.1 7.483 43.6 G-50 Data reter to members of a labor union or an employee association whose jobs ae ovetred by e usion or an emloyee associabon contract Simat to a anion. NOTE: Data refet to the sole or pnncipaf job of full- and part-tine D Data efeer to members of a tabor unton oi an mployee assocration workes. Excklded are sef employed orrers whose businesses ate srnslat to a auson as wel as rorkers who report no union atfdat;on butl nwcoporated alhoug they technicaly qualiy as wae and salary orrers. - - I - H. A SELECTED BIBLIOGRAPHY ON EMPLOYEE RELATIONS A SELECTED BIBLIOGRAPHY ON EMPLOYEE RELATIONS* ABOUT THE BIBLIOGRAPHY The following bibliography includes books and articles on employee relations which were published during 1988. It provides up-to-date research, analysis, and suggestions related to various aspects of employee relations policy and practice. This year's bibliography includes new or expanded sections on such timely subjects as: the "skills crisis"; human resource management in multinational firms; temporary employees; using computers in human resource management; dual career couples; ethics; technical employees; retiree health care benefits; child care and parental leave; and provisions and implications of Section 89. Some of these materials may be available through your local corporate or public library. Most can be found at large university research libraries. A local librarian can order items for you through interlibrary loan. Within each category, items are listed title first. Each entry provides title, author(s), and publication information, as follows: BOOKS TITLE - Training Needs Assessment AUTHOR(S) Rossett, Allison o (last name first) lduc Tech Pubns July 1988 PUBLISHER ACTUAL OR ANTICIPATED PUBLICATION DATE ARTICLES TITLE Benefits Flexibility to Increase in Future AUTHOR(S) DiBlase, Donna (last name first) Busine S Insurance v21n42 PPh 36,38 Oct 19, 1988 JOURNAL OR MAGAZINE PUBLICATION DATE VOLUME AND ISSUE NUMBERS PAGE NUMBERS * This bibliography was prepared by Judith Richlin-Klonsky, Senior, Editor, UCLA Institute of Industrial Relations. Thanks are due to Miki Goral, of the UCLA University Research Library Reference Department, for her helpfulness in conducting the initial computerized literature search from which items were selected; to Margaret Zamorano of the IIR, for her tireless efforts in presenting the bibliography in outline form; and to Jenny Bleier, for assistance in producing the manuscript. ) 1989 by the Regents of the University of California H-1 TABLE OF CONTENTS I. WAGES AND PRICES A. B. C. D. E. F. G. H. I. J. Competitive Wages H-4 Profit Sharing H-4 Comparable Worth H-4 Compensation Management H-4 Employee Ownership H-4 Merit Pay H-5 Incentive Compensation H-5 Salary Surveys H-5 Executive Compensation H-6 Trends H-7 II. HUMAN RESOURCE ISSUES A. Human Resource Management Policies and Practice H-7 B. Career Development H-8 C. Alcohol, Drugs, and Employment H-8 D. Employee Rights H-9 E. Employee Selection H-9 F. Performance Appraisal H-10 G. Employee Relocation and Transfer H-10 H. Job Evaluation H-10 I. Manpower (Succession) Planning H-li J. Recruiting and Retaining Employees H-i1 K. Training H-12 L. Employee Assistance Programs H- 12 M. AIDS H-12 N. Discharge, Resignation, and Layoffs H-13 O. Women's Career Issues H- 14 P. Smoking Policies H-14 Q. Human Resource Management in Mergers and Takeovers H-15 R. The "Skills Crisis' H-15 S. HRM in Multinational Companies H-16 T. Using Computers in HRM H-17 U. Temporary Employees H-17 V. Retirement H- 17 W. Dual-Career Couples H-18 X. Ethics H-18 Y. Technical Employees H-18 Z. Productivity H-18 III. LAWS, LEGISLATION, AND LITIGATION A. Recent Developments H-19 B. Discrimination Based on Age, Race, Sex, Religion, or Handicap H-20 C. Immigration Law H-23 D. Employment/Termination At Will H-23 E. Sexual Harassment H-26 H-2 IV. EMPLOYEE BENEFITS A. General Issues H-26 B. Pensions and Deferred Compensation H-27 C. Health Care H-28 1. Insurance H-28 2. Retiree Health Care Benefits H-29 3. Cost Control H-30 4. Health Promotion H-31 D. Flexible ('Cafeteria') Benefits Plans H-32 E. Family-Related Benefits: Parental Leave, Child Care, Elder Care H-32 F. Employee Stock Ownership Plans H-34 G. Taxation H-34 H. Laws and Legislation H-35 I. Alternative Work Arrangements: Flextime, Telecommuting H-36 V. LABOR RELATIONS A. Effects of Labor Organization H-36 B. Arbitration H-36 C. Employees' Representation in Management (Employee Participation) H-38 D. Litigation H-38 E. Grievance Procedure H-38 F. Labor Discipline H-39 G. Collective Bargaining H-39 H. Trends in Industrial Relations H-40 H-3 BIBLIOGRAPHY WAGES AND PRICES A. Competitive Wages Building the Foundation for Better Pay Kennedy, Peter Association Mgmt v40n2 PR 127-129 Feb 1988 B. Profit Sharing Gainsharing Revisited Welbourne, Theresa M.; Gomez-Mejia, Luis R. Compensation & Benefits Review v20n4 PP: 19-28 Jul/Aug 1988 C. Comparable Worth Unions and Comparable Worth: Progress in the Public Sector Wesman, Elizabeth C. Jrnl of Collective Negotiations in the Public Sector vl7nl PR 13-26 1988 D. Compensation Management The Compensation Sourcebook Fay, Charles and Beatty, Richard Human Res Dev Pr 03/1988 What Do Employees Think About Their Compensation? Sanchez, Paul; Juetten, Steve Jrnl of Compensation & Benefits v4n3 PP 164-165 Nov/Dec 1988 Compensation Survey Cole, Ben S.; Sizing, Matt Modern Healthcare vl8n44 PP. 41-82 Oct 28, 1988 Salary Planning in a Hyperinflationary Environment Osegueda, Jorge Garcia Topics in Total Compensation v2n4 PP 361-371 Summer 1988 E. Employee Ownership Bringing Your Employees into the Business: An Employee Ownership Handbook for Small Business Bell, Daniel Kent Popular 02/1988 H-4 Worker Participation in Employee-Owned Firms Rooney, Patrick Michael Jrnl of Economic Issues v22n2 PR 451-458 Jun 1988 F. Merit Pay Change Pay for Performance Without Resistance Gandossy, Robert P.; Gubman, Edward L. Personnel Jrnl v67nl0 PR. 127-132 Oct 1988 Pay for Performance: The Myth Is Turning into Reality Wiegman, Geoffrey A. Topics in Total Compensation v3ni PR 91-103 Fall 1988 G. Incentive Compensation Incentive Plans Needed for Nurse Administrators Navarre, Bonnie Puckett Nursing Mgmt vl9nlO PP 60-64 Oct 1988 Management Salaries Up, but Incentives Unchanged Gregg, Leigh Credit Union Magazine v54n9 PP 66-75 Sep 1988 Long-Term Incentive Plans: Where We Are and Where We're Going Chingos, Peter T.; Engel, Margaret M. Topics in Total Compensation v3nl PR 17-33 Fall 1988 Facts Survey: Incentives for Nonsales Workers Anonymous Incentive vl62n6 PR 53-57 Jun 1988 Rewards: The Pizzazz Is the Package, Not the Prize Grant, Philip C. Personnel Jrnl v67n3 PR 76-81 Mar 1988 At Last! Non-Sales Incentives Begin to Take Off LaForge, Ann E. Successful Meetings v37n2 PP 61-67 Feb 1988 H. Salary Surveys 1988 Career and Salary Survey Anonymous Medical Marketing & Media v23nl4 PR. 10-76 Nov 1988 Training's 1988 Salary Survey Geber, Beverly Training v25n1l PR 29-39 Nov 1988 H-5 Nurse Compensation Cole, Ben S.; Sizing, Matt Modern Healthcare vl8n49 PP 24-47 Dec 2, 1988 Charting the Latest Rates Long, Jeff Management World vl7n5 PPR 24-25 Sep/Oct 1988 Telecom Managers' Pay, Perks Still on the Rise DiDio, Laura Network World v5n40 PP 1,24-26,34 Oct 3, 1988 DP Staff Salary Scales Dip 2% Gregg, Leigh Credit Union Magazine v54n8 PP. 52-57 Aug 1988 Salary Survey Russell, Victor Public Relations Jrnl v44n6 PP- 26-30 Jun 1988 The Ninth Annual Working WQman Salary Survey Stoltenberg, John Working Woman vl3nl PP. 55-60,64 Jan 1988 Pricing the Director Market Board Fees and Benefits 1988 Anonymous Directors & Boards v12n3 PP. 34-36 Spring 1988 Executive Compensation The Fairness Factor in Dispensing Bonuses Siegel, Jay S. New England Business vlOnl I PP: 80-81 Jul 4, 1988 Power Pay: How the Big Guys Made Even More Money Greene, Tony Electronic Business vl4n20 PP. 74-78 Oct 15, 1988 In Search of Supermanagers; Top Jobs '88 Quickel, Stephen W. Business Month vl32n3 PP. 70-79 Oct 1988 Stock Options Goodson, Jane R.; McGee, Gail W.; Ginter, Peter M. Personnel Administrator v33n8 PP 71-75 Aug 1988 Salary Survey Executive Compensation Increase Rises 5.3%; '87's Big Deals Caused Execs to 'Churn and Yearn' Gadient, Sandford I.; Stanton, Stan S. National Real Estate Investor v30n7 PR 6-34 Jun 15, 1988 H-6 The Top Man Gets Richer Nelson-Horchler, Joani Industry Week v236nll PP. 51-54 Jun 6, 1988 J. Trends Disaggregated Wage Developments: Comments and Discussion Vroman, Wayne; Abowd, John M.; Burtless, Gary Brookings Papers on Economic Activity ni PP: 313-346 1988 II. HUMAN RESOURCE ISSUES A. Human Resource Management Policies and Practice Organizational Acceptance of Human Resource Management Innovation: Strategic Lessons for HRM Kossek, Ellen E. Greenwood 1989 Strategic Human Resource Development Kazanas, Hercules and Rothwell, William Prentice-Hall 10/1988 The Business of Employee Leasing: A Guide to Employee Leasing Willey, T. Joe Aegis Consulting 01/1988 The Nineteen Eighty Nine Annual: Developing Human Resources Pfeiffer, J. W. (ed.) Univ Assocs 12/1988 Forecasting Financial Benefits of Human Resource Development Swanson, Richard A. and Gradous, Deane B. Management Ser. Jossey-Bass 09/1988 The Human Resources Yearbook: 1988 Edition Norback, Craig T. Prentice-Hall 06/1988 Human Resource Director's Portfolio of Personnel Forms, Records & Reports Granholm, Axel R. Prentice-Hall 07/1988 Integrating Human Resource Planning and Development The Unification of Strategic, Operational, and Human Resource Planning Systems Manzini, Andrew 0. Human Resource Planning v Iln2 PP 79-94 1988 H-7 What's in a Title? Plenty Magnus, Margaret Personnel Jrnl v67n3 PP: 23-27 Mar 1988 Steps to Cut Employee Theft Gaines, Leigh Security v25n3 PP 58-61 Mar 1988 Hospital HR Management Changing Functions in a Changing Environment Scott, Clyde; Oswald, Sharon; Sanders, Tom Personnel v65n2 PP 52-56 Feb 1988 Improving HR Practices: Practical Approaches McManis, Gerald L.; Leibman, Michael Personnel Administrator v33nl PP 35-39,85 Jan 1988 Where Is HR Management Going? Driver, Michael J.; Coffey, Robert E.; Bowen, David E. Personnel v65nl PP. 28-31 Jan 1988 Employing Physically and Mentally Impaired Employees Feldman, Diane Personnel v65nl PP 14-18 Jan 1988 B. Career Development Personalizing Staff Development The Career Lattice Model Christensen, Judith C., McDonnell, John H., and Price, Jay R. Phi Delta Kappa 10/1988 C. Alcohol, Drugs, and Employment Bargaining over drug testing: an employer's responsibilities. Wasserman, Mark A. Los Angeles Daily Journal vlOl n102 col 3 p4 May 23, 1988 Combatting Drugs at Work Schreier, James W. Training & Development Jrnl v42nl0 PP 56-60 Oct 1988 Drug Testing: A Step-by-Step Approach Turner, Carlton E. Business & Health v5n9 PP 10-14 Jul 1988 Use of Drug Testing to Confront Denial Osborne, James; Wiechetek, Walter Compensation & Benefits Mgmt v4n3 PP 225-230 Spring 1988 The Who, How, When, and Why of Drug Testing Johnson, Alicia Management Review v77n4 PR 10-11 Apr 1988 H-8 Workplace Testing: Results of a New AMA Survey Greenberg, Eric Rolfe Personnel v65n4 PP 36-44 Apr 1988 D. Employee Rights Right to Know Compliance Guide Phillips, N. Randall (ed.) Human Res Dev Pr 04/1988 Protecting individual employees: is it safe to complain about safety? Swain, James H. University of Bridgeport Law Review 9 nI 59-139 Wntr, 1988 E. Employee Selection Successful Hiring Skillful Interviewing Techniques Schroeer, Susan Caddylak Systs 03/1988 Handbook of Personnel Selection & Performance Evaluation in Healthcare: Guidelines for Hourly, Professional, & Managerial Employees Lombardi, Donald N. Jossey-Bass 09/1988 Staffing the Contemporary Organization: A Guide to Planning, Recruiting, & Selecting for Human Resource Professionals Caruth, Donald L., Noe, Robert M.,III, and Mondy, R. Wayne Greenwood 02/1988 Hiring Practices and Pitfalls Wileman, Sherry L. Broker World v8nlO PP 12-20,112 Oct 1988 Hiring Ex-Offenders Odiorne, George S.; Henry, Patrick Personnel Administrator v33n9 PP: 104-112 Sep 1988 Getting to Know You Hammer, Edson G.; Kleiman, Lawrence S. Personnel Administrator v33n5 PP 86-92 May 1988 How to Evaluate Psychological/Honesty Tests Inwald, Robin Personnel Jrnl v67n5 PP 40-46 May 1988 "So, You Want to Work for Us . . ." Karren, Ronald J.; Nkomo, Stella M. Personnel Administrator v33n4 PP 88-92 Apr 1988 H-9 Rejecting Applicants with Tact Aamodt, Michael G.; Peggans, Deborah L. Personnel Administrator v33n4 PP: 58-60 Apr 1988 Preemployment Testing Blocklyn, Paul L. Personnel v65n2 PP: 66-68 Feb 1988 Interviewing Savvy Anonymous Management Solutions v33n2 PPh 21-22 Feb 1988 F. Performance Appraisal Performance Planning & Appraisal: A How-to Book for Managers King, Patricia McGraw 10/1988 Effective Performance Appraisals Maddux, Robert B. Human Res Dev Pr 06/1988 Effective Phrases for Performance Appraisals: A Guide to Successful Evaluations Neal, James E. Neal Pubns Inc 1988 Causes of Failure in Performance Appraisal & Supervision: A Guide to Analysis & Evaluation for Human Resources Professionals Baker, Joe,Jr. Greenwood 06/1988 A Model Method for Dealing with Employee Failure Weaver, Robert A., Jr. Manufacturing Systems v6nl PP 57-58 Jan 1988 G. Employee Relocation and Transfer Cut Moving Costs Without Sacrificing Service Driskell, Paul Personnel Jrnl v67n5 PP. 111-115 May 1988 How to Successfully Move an Organization Krigsman, Naomi; Krigsman, Ruben Personnel Jrnl v67nl PP: 65-72 Jan 1988 H. Job Evaluation Fitting the Task to the Man Grandjean, Etienne Taylor & Francis 02/1988 H-10 Manpower (Succession) Planning U.S. Aerospace/Defense Engineering Manpower Kandebo, Stanley W. Aviation Week & Space Technology vl29n23 PRP 36-62 Dec 5, 1988 Planning, Employment & Placement Cascio, Wayne (ed.) BNA 02/1989 How Large Should the HR Staff Be? Walker, James W. Personnel v65nlO PP 36-42 Oct 1988 CODEN: PSNLAH J. Recruiting and Retaining Employees Recruiting for the 1990s: Thrifts Adjusting to Change van der Linden, Anne M. Bottomline vSnlO PR 9-14 Oct 1988 Does Your Firm Use the Right Approach in Hiring Campus Recruits? Krzystofik, Anthony T.; Fein, Richard Jrnl of Accountancy vl66n5 PR 83-88 Nov 1988 How to Recruit Bank Directors Austin, Douglas V. Bank Administration v64n5 PP 8,11 May 1988 Retaining Quality Federal Employees: Life After PACE Ban, Carolyn; Ingraham, Patricia W. Public Administration Review v48n3 PR 708-718 May/Jun 1988 Headhunters in Local Government: Use of Executive Search Firms in Managerial Selection Ammons, David N.; Glass, James J. Public Administration Review v48n3 PP 687-693 May/Jun 1988 Employer Recruitment Practices Blocklyn, Paul L. Personnel v65n5 PP 63-65 May 1988 The Old College Try; Grads Give Recruiters Low Grades Falvey, Jack; Bragg, Arthur Sales & Marketing Mgmt vl40n7 PP 44-49 May 1988 Keep Your Subordinates Farrant, Alan W. Supervision v5On4 PR 3-5 Apr 1988 Getting the Most for Your Recruiting Dollar Degnan, James M. Legal Economics vl4n2 PP 60-62 Mar 1988 H-li K. Training The National Directory of Corporate Training Programs Bard, Ray and Elliott, Susan K. Doubleday 10/1988 New Employee Orientation Cadwel, Charles M. Human Res Dev Pr 06/1988 Training Managers to Train Zacarelli, Herman Human Res Dev Pr 06/1988 Training for New Technologies: Success Stories for the 1990s BNA 06/1988 Train the Trainer Ittner, Penny L. and Douds, Alex F. Human Res Dev Pr 03/1988 Training Magazine's Industry Report 1988; Training: Budgets: Neither Boom nor Bust Feuer, Dale; Lee, Chris Training v25nlO PP 31-46 Oct 1988 L. Employee Assistance Programs An Action Plan for Helping Troubled Employees Longenecker, Clinton O.; Liverpool, Patrick R. Management Solutions v33n7 PP. 22-27 Jul 1988 M. AIDS AIDS Treatment a Private Sector Concern, but Only 5% Have Corporate Policy Anonymous Employee Benefit Plan Review v42nl2 PP: 26 Jun 1988 AIDS in the workplace. (Labor Law) Sampson, Richard T. Federal Bar News & Journal 35 n3 126-131 March-April, 1988 After School Board of Nassau County v. Arline: employees with AIDS and the concerns of the "worried well." Gentemann, Evelynn M. American University Law Review 37 n3 867-913 Spr, 1988 H-12 N. Discharge, Resignation, and Layoffs Employee Dismissal Law Forms & Procedures: 1988 Supplement Dichter, Mark S. Sauntry, et al. Wiley 05/1988 How to avoid layoffs becoming lawsuits. Weiner, Paul I. New Jersey Law Journal v122 nil col 1 plO Sept 15, 1988 Reducing management's litigation exposure through appropriate personnel practices and procedures. (Labor Law) Verstegen, Anne-Marie; Laponsky, Mark D. Federal Bar News & Journal 35 n3 138-141 March-April, 1988 An analysis of plant closing law: how to protect workers from the effects of cessation in business while preserving employer rights. Gallo, Judith John Marshall Law Review 21 n3 565-591 Spr, 1988 Document against employee suits. Keyes, Judith Droz Practical Lawyer 34 n4 21(8) June, 1988 Employee fighting: will it mean discharge? Adams, Meryl; Davis, Lisa; Jennings, Kenneth M. Arbitration Journal 43 n2 37-43 June, 1988 How to Carry Out Layoffs Without Demoralizing Those Who Stay Anonymous Profit-Building Strategies for Business Owners vl8nlO PP: 14-15 Oct 1988 Layoffs: How Employees and Companies Cope Leana, Carrie R.; Feldman, Daniel C. Personnel Jrnl v67n9 PP: 31-34 Sep 1988 Minimize the Danger of Giving References Panaro, Gerard P. Personnel Jrnl v67n8 PP 93-96 Aug 1988 How to Fire Your Best Friend Foxman, Loretta D.; Polsky, Walter L. Personnel Jrnl v67n5 PP' 24,28 May 1988 Strategic Guidelines for Terminating Employees Howard, Cecil G. Personnel Administrator v33n4 PP: 106-109 Apr 1988 Behavioral Outplacement. A Shorter, Sweeter Approach Duffy, Elaine M.; O'Brien, Richard M.; Brittain, William P.; Cuthrell, Stephen Personnel v65n3 PP. 28-33 Mar 1988 H-13 Outplacement The View from HR Piccolino, Edmund B. Personnel v65n3 PP. 24-27 Mar 1988 Three Steps to Finding the Silver Lining of Staff Reductions Helton, B. Ray Industrial Mgmt v30n1 PP. 17-20 Jan/Feb 1988 Downsizing in Good Times and Bad Anonymous Management Review v77nl PP 8-9 Jan 1988 0. Women's Career Issues Why the Glass Ceiling? Friedman, Dana E. Across the Board v25n7-8 PP, 32-37 Jul/Aug 1988 Equality for Women? Seymour, Daniel T.; Voss, Gisela C. Business Horizons v31n6 PP 10-13 Nov/Dec 1988 Women Executives: Breaking Down Barriers? Forbes, Benjamin J.; Piercy, James E.; Hayes, Thomas L. Business Horizons v31n6 PP 6-9 Nov/Dec 1988 Career conflicts; female professionals' double bind: 'be yourself,' just like a man. Rhode, Deborah L. Los Angeles Daily Journal viOl n184 col 3 p4 Sept 14, 1988 Perspectives on professional women. (Gender and the Law) Rhode, Deborah L. Stanford Law Review 40 n5 1163-1207 May, 1988 P. Smoking Policies Key Concerns in Shaping a Company Smoking Policy Hames, David S. Employee Relations Law Jrnl vl4n2 PP: 223-237 Autumn 1988 Smoking Policies in Associations: Clearing the Air? Fernicola, Karen L. Association Mgmt v40n9 PP: 60-65 Sep 1988 Corporate Smoking Policies: Today and Tomorrow Swart, J. Carroll Personnel v65n8 PP 61-66 Aug 1988 H-14 Smoking Policies Take Off; The Smoking Controversy Goes to Court McKendrick, Joseph E.; Scott, R. Craig Management World vI7nl PP: 12-14 Jan/Feb 1988 Where There's Smoke, There's Ire Williams, Webster E. Venture viOnI PP. 12 Jan 1988 Q. Human Resource Management in Mergers and Takeovers Corporate Acquisitions and Dispositions: Employment and Labor Law Issues Dilworth, Edmond J., Jr.; Emanuel, William J.; Simon, Bruce H.; Welch, John S. Industrial Relations Law Jrnl vlOnI PP: 59-91 1988 Employee severance agreements in changes in control. Block, Dennis J.; Hoff, Jonathan M. New York Law Journal v199 nll5 col I p5 June 16, 1988 The Effect of Corporate Mergers and Acquisitions on Employee Benefit Plans Sloan, Kathleen Hunter Benefits Qtrly v4n3 PP: 44-56 Third Quarter 1988 Consider the People-Fit Issues During Mergers Krupar, Karen R.; Krupar, Joseph J. Personnel Jrnl v67n3 PR 95-98 Mar 1988 R. The "Skills Crisis" Can Your Workers Read? Berney, Karen Nation's Business v76nlO PP 26-34 Oct 1988 Needed: Human Capital Nussbaum, Bruce; Bernstein, Aaron; Ehrlich, Elizabeth; Garland, Susan B.; Pennar, Karen Business Week n3070(Industrial/Technology Edition) PP 100-141 Sep 19, 1988 Tomorrow's Workforce Today Goldstein, Mark L. Industry Week v237n4 PP 41-43 Aug 15, 1988 Basic Training in the Corporate Schoolhouse Lee, Chris Training v25n4 PP 27-36 Apr 1988 Toward the Year 2000: Are We Ready? McBriarty, Mark A. Bureaucrat vl7n2 PP 8-12 Summer 1988 H-15 Help Wanted., America Faces an Era of Worker Scarcity That May Last to the Year 2000 Bernstein, Aaron; Anderson, Richard W.; Zeliner, Wendy Business Week n3011 (Industrial/Technology Edition) pp: 48-53 Aug 10, 1987 S. HRM in Multinational Companies Human Resource Management in the Multinational Corporation: 1988 Tichy Wiley 1988 International Human Resource Management Bigoness Business Pubns 1989 Labor Movements and the Multinational Corporation A Future for Collective Bargaining? Levine, Marvin J. Employee Relations Law Jrnl v13n3 PP 382-403 Winter 1987/1988 American Education for International Business Reynolds, John I.; Rice, George H., Jr. Management International Review (Germany) v28n3 PP 48-57 Third Quarter 1988 Worldwide Executive Mobility Anonymous Harvard Business Review v66n4 PR 105-123 Jul/Aug 1988 Effectively Communicating Compensation and Benefits Programs to Local Nationals Oscarson, D. Craig Topics in Total Compensation v2n4 PR 353-360 Summer 1988 How to Develop a Salary Structure: A Guide for Foreign Affiliates Ekholm, Dene Topics in Total Compensation v2n4 PP 339-352 Summer 1988 Tax Balancing for Foreign Nationals: A Survey of U.S. Multinational Companies Field, Thomas M.; Tatta, Raj Topics in Total Compensation v2n4 PR 327-337 Summer 1988 The Female Expat's Promise Nye, David Across the Board v25n2 PR 38-43 Feb 1988 Extraterritorial application of federal labor laws: Zimmerman, James Michael Cornell International Law Journal 21 nl 103-126 Wntr, 1988 H-16 T. Using Computen InI HIRM Human Resources Simulation Using Lotus 1-2-3 Penley, Larry and Penley, Yolanda SW Pub 1989 Human Resource Information Systems BNA 06/1989 Access Control & Personal Identification Systems Bowers, Dan M. Butterworth 05/1988 Human Resources Management Tools: Guidelines for Upgrading Your HRM-HRIS Capabilities Blair, Edward Bidniss Bks 01/1988 The Growing Dependence on HRIS Grossman, Morton E.; Magnus, Margaret Personnel Jrnl v67n9 PP: 52-59 Sep 1988 Software Success: A Proactive Plan of Attack Wolke, Julie W. Personnel Administrator v33n1 PP 26-30 Jan 1988 How to Justify a Human Resources Information System Travis, William I. Personnel Jrnl v67n2 PP. 83-86 Feb 1988 U. Temporary Employees Temporary Services Warm to the Business Climate Halcrow, Allan Personnel Jrnl v67nlO PP. 84-89 Oct 1988 Temporary Employees: A Permanent Boon? Simonetti, Jack L.; Nykodym, Nick; Sell, Louella M. Personnel v65n8 PP 50-56 Aug 1988 Temporary Help Firms Are Doing Their Jobs Anonymous Office vlO8n2 PP. 39-42 Aug 1988 V. Retirement Who Reaches for the Golden Handshake? Howard, Ann Academy of Mgmt Executive v2n2 PP: 133-144 May 1988 H-17 How Much Retirement Income Do Employees Need? England, Colin B. Benefits Qtrly v4nl PR 1-5 First Quarter 1988 W. Dual-Career Couples Corporate Responses to Dual-Career Couples: A Decade of Transformation Newgren, Kenneth E.; Kellogg, Calvin E.; Gardner, William Akron Business & Economic Review vl9n2 PRP 85-96 Summer 1988 Anti-Nepotism Rules and Dual Career Couples: Policy Questions for Public Personnel Administrators Reed, Christine M. Public Personnel Mgmt vl7n2 PR 223-230 Summer 1988 Dual-Career Couples and Geographic Transfer Executives' Reactions to Commuter Marriage and Attitude Toward the Move Taylor, Ann Siegris; Lounsbury, John W. Human Relations v41n5 PP 407-424 May 1988 X. Ethics A Question of Corporate Ethics Court, James Personnel Jrnl v67n9 PR 37,39 Sep 1988 Ethical and Legal Aspects of Managing Corporate Cultures Drake, Bruce H.; Drake, Eileen California Mgmt Review v30n2 PR 107-123 Winter 1988 Y. Technical Employees The New Professionals: Managing Today's High-Technology Employees Von Glinow, Mary A. Ballinger Pub 10/1988 Helping Technical Professionals Cope with Change Moses, Joseph L. Research-Technology Mgmt v31n2 PR 37-40 Mar/Apr 1988 Z. Productivity Managing Human Resources: Productivity, Quality of Work Life, Profitsl Cascio, Wayne Management Ser. McGraw 12/1988 H-18 Motivation & Productivity in Public Sector Human Service Organizations Martin, William T. Quorum Bks Greenwood 09/1988 Enhancing Human Performance: Issues, Theories, & Techniques Druckman, Daniel and Swets, Johns A. (eds.) Natl Acad Pr 01/1988 Reviving Productivity in America Shuster, Frederick E. Personnel Administrator v33n7 PP. 65-68 Jul 1988 Improved Productivity and Job Satisfaction Through Employee Exercise Programs Frew, David R.; Bruning, Nealia S. Hospital Materiel Mgmt Qtrly v9n4 PP. 62-69 May 1988 III. LAWS, LEGISLATION, AND LITIGATION A. Recent Developments Avoiding liability in employee handbooks. Witt, Maureen Reidy; Goldman, Sandra R. Employee Relations Law Journal 14 nl 5-18 Summ, 1988 Labor and employment law. (Fifth Circuit Survey June 1987-May 1987) Hambright, James W.; Hambright, Robert J. Texas Tech Law Review 19 n2 731-796 April, 1988 Court rules employment contracts can be implied. (Robards v. Gaylord Brothers, Inc.) Carrizosa, Philip Los Angeles Daily Journal vlO n163 col 1 p2 Aug 16, 1988 E.E.O.C. v. Franklin and Marshall College: confidential promotion and tenure materials subject to civil rights investigation and enforcement. Burke, William T., III; Cavaliere, Frank J. Saint Louis University Public Law Review 7 n2 423-431 Fall, 1988 Federal Regulation of Personnel & Human Resource Management Ledvinka, James PWS Kent Pub 12/1988 Will courts let companies run their business? Bacon, David L.; Gomez, Angel, III Los Angeles Daily Journal vIOl nl21 col 3 p4 June 17, 1988 H-19 B. Discrimination Based on Age, Race, Sex, Religion, or Handicap First Amendment protects employees from state penalties for religious conversion but only a reasonable accommodation by employer is required to meet Title VII obligations. Loquasto, Wendy S. Stetson Law Review 17 n3 932-933 Summ, 1988 Gender effects in discharge arbitration. Bemmels, Brian Industrial and Labor Relations Review 42 nl 63-76 Oct, 1988 Legal developments affecting settlement agreements in discrimination cases. Webb, John R. Colorado Lawyer 17 n5 857(4) May, 1988 I sit and look out employment discrimination against homosexuals and the new law of unjust dismissal. Douglas, James A. Washington University Journal of Urban and Contemporary Law 33 73-136 Summ, 1988 Willfulness, good faith, and the quagmire of liquidated damages under the Age Discrimination in Employment Act. Charland, John Edward Journal of Corporation Law 13 n2 573-619 Wntr, 1988 Permitting religious employers to discriminate on the basis of religion: application to for-profit activities. Klundt, Scott Brigham Young University Law Review 1988 nl 221-239 Wntr, 1988 AFSCME v. Washington: The Continued Viability of Title VII Comparable Worth Actions Scheibal, William Public Personnel Mgmt vl7n3 PP 315-322 Fall 1988 Nondiscrimination Rules Effective Next Year Must Be Prepared for Now Jones, Michael B.; Klein, Jeffrey D. Jrnl of Compensation & Benefits v3n5 PPR 299-301 Mar/Apr 1988 AIDS: employers caught in middle; murky policies cloud rights in hiring, firing. Brown, Michael R.; Gordon, Elliot K. Bar Leader 14 n3 14-17 Nov-Dec, 1988 Burden of proof after Watson: a major shift in disparate impact litigation? Kandel, William L. Employee Relations Law Journal 14 n2 263-275 Aut, 1988 H-20 Watson v. Fort Worth Bank & Trust unanswered questions. Mertens, Glen H. Employee Relations Law Journal 14 n2 163-173 Aut, 1988 Protecting employees with AIDS using Title VII to meet an urgent need. Murphy, Susan Review of Litigation 7 n3 357-380 Summ, 1988 Title VII and the Age Discrimination in Employment Act should partners be protected as employees? Eck, Colleen University of Kansas Law Review 36 n3 581-609 Spr, 1988 The Age Discrimination in Employment Act Amendments of 1986: implications for tenure and retirement. Ruebhausen, Oscar M. Journal of College and University Law 14 n4 561-574 Spr, 1988 Discrimination against male faculty in higher education: will Title VII become the 'Unfair Employment Act?" Poindexter, James T. Labor Law Journal 39 n9 615-621 Sept, 1988 Sex and age bias in workplace set for high court; questions on burdens and access to juries could be clarified; fine-tuning precedent? Reuben, Rihcard C. Los Angeles Daily Journal vIOl n217 col 6 pl Oct 31, 1988 Employment discrimination. (Fifth Circuit Survey June 1987-May 1987) Powers, Christopher J. Texas Tech Law Review 19 n2 541-559 April, 1988 Job requirements and religious practices: conflict and accommodation. Massengill, Douglas; Petersen, Donald J. Labor Law Journal 39 n7 402-410 July, 1988 Causation in employment discrimination law. Belton, Robert Wayne Law Review 34 n3 1235-1306 Spr, 1988 EEOC bars bias on basis of toxic exposure. National Law Journal vlI n6 col 1 p6 Oct 17, 1988 Disparate impact in employment discrimination law. Duggan, David G. Chicago Daily Law Bulletin v134 n193 col 3 p2 Oct 3, 1988 Runyon under the gun. (race discrimination) Reidinger, Paul ABA Journal 74 78(4) Nov 1, 1988 H-21 Defining 'handicap' for purposes of employment discrimination. O'Connor, Maureen Arizona Law Review 30 n3 633-672 Summ, 1988 Title VII and sex discrimination in employment disparate treatment and disparate impact in the Sixth Circuit Court of Appeals. (Sixth Circuit Review) Petrella, Barbara University of Toledo Law Review 19 n2 433-489 Wntr, 1988 Arbitrators' awards in cases involving age discrimination. Wrong, Elaine Gale Labor Law Journal 39 n7 411-417 July, 1988 Not the last word: court leaves key bias issues for another day; Title VII challenges to subjective hiring practices that have a discriminatory effect just got a little easier - but how much easier is anybody's guess. Powers, N. Thompson Legal Times vll nil col I p15 Aug 8, 1988 New medical meanings for S.504 - the Federally Handicapped Persons Civil Rights Provision. Parry, John Mental and Physical Disability Law Reporter 12 n3 234(4) May-June, 1988 Employment discrimination. (1987 Eleventh Circuit Survey January 1, 1987 - December 31, 1987) Corbin, Peter Reed; Dickinson, John F. Mercer Law Review 39 n4 1215-1257 Summ, 1988 Civil rights - age discrimination - reasonable factor other than age. Torres, Joseph J. Illinois Bar Journal 76 nIO 570(4) June, 1988 Reducing potential for ADEA liability in reductions in force. Kandel, William L.; Janovsky, Peter Employee Relations Law Journal 14 nl 107-115 Summ, 1988 Employer English-only and English proficiency policies may be discriminatory. Greenwood, Mary Florida Bar Journal 62 n4 70-72 April, 1988 Ms. conceptions: the rights of pregnant women in the workplace. Margulies, Richard N. Florida Bar Journal 62 n4 45-48 April, 1988 Tuberculosis is a handicap for which protection against discrimination is available. Holcombe, Donna R. Stetson Law Review 17 n3 931 Summ, 1988 H-22 AIDS and pregnancy discrimination; balancing competing interests. Cooperman, Harriet E. Trial 24 n6 14-17 June, 1988 Court holds to 'disparate impact' test in bias cases. Chicago Daily Law Bulletin v134 n127 col 2 p1 June 29, 1988 Can sex be considered in promotion determinations? Bennett-Alexander, Dawn D. Labor Law Journal 39 n4 232-241 April, 1988 Retirement and worker choice: incentives to retire and the Age Discrimination in Employment Act. McMorrow, Judith A. Boston College Law Review 29 n2 347-390 March, 1988 Recent case law on handicap discrimination in employment. DuBow, Sy Mental and Physical Disability Law Reporter 12 nl 10(4) Jan-Feb, 1988 Asymptomatic infection with the AIDS virus as a handicap under the Rehabilitation Act of 1973. Kushen, Robert A. Columbia Law Review 88 n3 563-586 April, 1988 The shaping of AIDS law. Weisenhaus, Doreen National Law Journal vlO n47 col I p1 Aug 1, 1988 Justice action on AIDS leaves questions. (U.S. Department of Justice) Roberts, Charley Los Angeles Daily Journal viOl n203 col I p5 Oct 11, 1988 C. Immigration Law The antidiscrimination provision of the Immigration Reform and Control Act. Johnson, Linda Sue Tulane Law Review 62 n5 1059-1112 May, 1988 IRCA's antidiscrimination provisions: protections against hiring discrimination in private employment. (Immigration Reform and Control Act of 1986) (Immigration and Nationality XIII) Magalski, Richard San Diego Law Review 25 n2 405-423 March-April, 1988 D. Employment/Termination At Will Clearing up ERISA confusion. Bacon, David L.; Gomez, Angel, III Los Angeles Daily Journal vlOl n231 col I p7 Nov 18, 1988 H-23 Employee Dismissal Law & Practice: 1988 Supplement I Perritt, Henry H. Wiley 03/1988 Public Policy Claims in Employee Termination Disputes McGill, Linda D. Employment Relations Today vlSnl PP 43-48 Spring 1988 Defamation in the workplace. Prentice, Robert A.; Winslett, Brenda J. Communications and the Law 10 n5 29-38 Oct, 1988 Supreme Court rulings on wrongful discharge and union dues. Brown, Thomas P., IV; Healy, Paul J. Employee Relations Law Journal 14 n2 277-282 Aut, 1988 ERISA Section 510 - a further limitation on arbitrary discharges. Collingsworth, Terry Industrial Relations Law Journal 10 n3 319-349 Summ, 1988 Review of 1986-1987 Sixth Circuit Court of Appeals' decisions relating to common law principles of wrongful discharge. (Sixth Circuit Edition) Hornberger, Lee Northern Kentucky Law Review 15 n2 303-328 Summ, 1988 Remedies for employer's wrongful discharge of an employee from employment of an indefinite duration. Weisenberger, Ronald Indiana Law Review 21 n2 547-586 Spr, 1988 Study says wrongful discharge suit rare. Angel, Carol Los Angeles Daily Journal vlOl n186 col I p5 Sept 16, 1988 Damages for mental distress in wrongful termination litigation. Marcus, Eric Trial Diplomacy Journal 11 n3 16-19 Fall, 1988 Employment at will: a survey. (Industrial Relations Research Association, Proceedings of the 1988 Spring Meeting) Hawkins, Michael W. Labor Law Journal 39 n8 525-527 Aug, 1988 Defamation in the work place: 'the new workhorse in termination litigation.' (First Amendment Symposium) Fossett, John Jay Northern Kentucky Law Review 15 nl 93-128 Spr, 1988 Duration of employment-at-will. Forsythe, Linda UMKC Law Review 56 n2 343-365 Wntr, 1988 H-24 Compelled self-publication: how discharge begets defamation. Turner, Ronald Employee Relations Law Journal 14 nI 19-29 Summ, 1988 Employment at will the no fault alternative. Gullett, C. Ray; Greenwade, George D. Labor Law Journal 39 n6 372-378 June, 1988 A new common law of employment termination. Leonard, Arthur S. North Carolina Law Review 66 n4 631-686 April, 1988 Structured settlements in employment litigation. Winslow, William L. Los Angeles Lawyer 11 n2 19-25 April, 1988 Partner termination can force anti-discrimination law suits. (California Business Law supplement) Los Angeles Daily Journal viOl nI 12 col I pS2 June 6, 1988 Coverage issues in employment claims. Martin, Chrys A. For the Defense 30 n4 11-16 April, 1988 State law protection of at-will employees who 'blow the whistle.' Schultz, Thomas R. University of Detroit Law Review 65 n3 551-566 Spr, 1988 Defamation in the employment discharge context the emerging doctrine of compelled self-publication. Langvardt, Arlen W. Duquesne Law Review 26 n2 227-293 Wntr, 1988 Wrongful termination as labor law. Brody, Arthur Southwestern University Law Review 17 n3 434-472 Summ, 1988 No property interest in probationary employee's job. Judge, Jay; Schirott, James R. Chicago Daily Law Bulletin v134 n84 col 2 p3 April 28, 1988 Developments in California wrongful discharge law. (Forum: Labor Law Symposium Proceedings) Jensen, Michael L. Industrial Relations Law Journal 10 nI 27-39 Wntr, 1988 Current developments in whistleblower protection. Howard, John L. Labor Law Journal 39 n2 67-80 Feb, 1988 Court reviews retaliatory discharge. Chicago Daily Law Bulletin v134 n58 col 2 pl March 24, 1988 H-25 Insurance coverage of employment discrimination and wrongful termination actions. (part 2) Peer, John E.; Mallen, Ronald E. Defense Counsel Journal 55 nl 12-25 Jan, 1988 9th Circuit adopts broad view of law on wrongful firing. Carrizosa, Philip Los Angeles Daily Journal viOl n52 col 4 pl March 14, 1988 The current status of the doctrine of employment-at-will. Hames, David S. Labor Law Journal 39 nl 19-32 Jan, 1988 Job protection for some U.S. workers limited. Chicago Daily Law Bulletin v134 n36 col 2 p1 Feb 23, 1988 Help wanted: an expansive definition of constructive discharge under Title VII. Buckner, Jan A. University of Pennsylvania Law Review 136 n3 941-969 Jan, 1988 Do your clients' job application forms invite lawsuits? Frierson, James G.; Bayes, Paul E.; Jolly, James P. Law Office Economics and Management 29 nl 41-66 Spr, 1988 E. Sexual Harassment Sexual Harassment at Work Ford, Robert C.; McLaughlin, Frank S. Business Horizons v31n6 PP 14-19 Nov/Dec 1988 Sexual harassment in the workplace: employer liability for a sexually hostile environment. Blanchard, Lisa A. Washington University Law Quarterly 66 nl 91-109 Wntr, 1988 Of rights and remedies - sexual harassment in the workplace: Meritor Savings Bank and the Sixth Circuit. (Sixth Circuit Review) Quick, Albert T.; Quick, Brenda Jones University of Toledo Law Review 19 n2 331-354 Wntr, 1988 Employer liability for 'hostile environment' sexual harassment. Selden, Janet Howard Law Journal 31 nl 51-65 Wntr, 1988 IV. EMPLOYEE BENEFITS A. General Issues Competing for the Telco Work Force Canup, Winnie Perilla; Lehner, J. Christopher Rural Telecommunications v7n4 PP 31-40 Fall 1988 H-26 Measuring the Cost and Incidence of Employee Benefits Norwood, Janet L. Monthly Labor Review vll1n8 PPR 3-8 Aug 1988 The Employee as a Consumer A New Perspective for Communicating Employee Benefits Phillips, Kenneth F.; Gray, Wendy B. Compensation & Benefits Mgmt v4n4 PP 327-331 Summer 1988 Future Changes in Employee Benefits Salisbury, Dallas L. Business Credit v90n4 PP: 48-50,63 Apr 1988 Benefits in the 1990s Paine, Thomas H. Personnel Jrnl v67n3 PP 82-92 Mar 1988 Five Tips for Good Benefits Communication Zazove, Glen Pension World v24n3 PPT 22,26 Mar 1988 Effective Benefits Communication: Delivery Counts Too! Schleger, Peter R. Employee Benefits Jrnl vl3nl PP 24-26 Mar 1988 How Much Unfunded Liability Is Woven into Corporate Benefit Plans? Duggan, T. Patrick Risk Mgmt v35nl PP 24-31 Jan 1988 B. Peasions and Deferred Compensation The Investment Performance of Corporate Pension Plans: Why They Do Not Beat the Market Regularly Berkowitz, Stephen A. Finney, Louis D. Logue, Dennis E. Greenwood 03/1988 How Has Vesting Changed Since Passage of Employee Retirement Income Security Act? Graham, Avy D. Monthly Labor Review vl I 1n8 PP 20-25 Aug 1988 Terminating a Defined-Benefit Plan Under SEPPAA Littell, David A.; Michel, Elizabeth Burch Compensation & Benefits Mgmt v4n4 PP. 311-315 Summer 1988 Unilateral reduction of employer's contribution to pension fund not an unfair labor practice when there is no impact on current benefits. Loquasto, Wendy S. Stetson Law Review 17 n3 950-951 Summ, 1988 H-27 401(k)s Used for Savings, Not Investments Brostoff, Steven National Underwriter (Life/Health/Financial Services) v92n22 PP: 7 May 30, 1988 Pension Plan Executives Labor to Make Changes Gardner, Elizabeth Modern Healthcare vl8nl6 PP: 30-37 Apr 15, 1988 Court limits application of rulings on pension sex bias. Chicago Daily Law Bulletin v134 n122 col 2 pl June 22, 1988 Pension Plans: Tax Law Through OBRA, '87 Goodman Commerce 03/1988 401(k)s Gain Ground Kittrell, Alison Pensions & Investment Age vl6n20 PP: 26 Sep 19, 1988 C. Health Care 1. Insurance The terminated employee's right to continue group health insurance. Howard, Robert M. Colorado Lawyer 17 nl 53(4) Jan, 1988 Employer-Sponsored Dental Insurance Eases the Pain Arthor Jain, Rita S. Monthly Labor Review vlllnlO PR 18-23 Oct 1988 Most HMO Enrollees Satisfied: Survey DiBlase, Donna Business Insurance v22n45 PR. 3,57 Nov 7, 1988 Administrative Burdens, Not Costs, Dominate First Year of COBRA Continuation of Coverage Huth, Stephen A. Employee Benefit Plan Review v43n4 PR 14-17 Oct 1988 Most Users of HMOs and Traditional Medical Plans Are Pleased Maddalon, Delores A.; Havlin, Linda J. Jrnl of Compensation & Benefits v3n6 PP 348-352 May/Jun 1988 Using Employee Satisfaction to Choose HMOs Feldman, Sari Fritz, Dan; Stanfield, Charles Business & Health v5n4 PP: 17-20 Feb 1988 Health Care: Push Is Coming to Shove . . . How Will We Respond? Charles, Joseph G. Risk Mgmt v35nl PR. 20-23 Jan 1988 H-28 Employers Flex Their Muscles with HMOs Peres Alan; Mortimer, James; Shields, Christopher Business & Health v6nl PP: 18-22 Nov 1988 2. Retiree Health Care Benefits Legal Aspects of Accounting for Postemployment Health Care and Life Insurance Benefits Werner, Charles; Kostolansky, John Jrnl of Accounting, Auditing & Finance v3nl PP: 62-72 Winter 1988 COBRA: Continuation of Health Benefits for Employees; Snake in the Grass to Employers Jaffe, Nancy Oddi; Spacapan, Edward, Jr. Employee Benefits Jrnl vl3nl PP: 2-12 Mar 1988 Emerging Facets of Retiree Benefits DeWitt, Dennis L. Business & Health v5nlO PP: 8-12 Aug 1988 Managing Postemployment Medical Benefits in a Dynamic Environment Rappaport, Anna M. Compensation & Benefits Mgmt v4n4 PPh 323-326 Summer 1988 Retirement Benefits May Burden Today's Bottom Line Kimbrough, Richard E. Financial Managers' Statement vlOn4 PPR 58-61 Jul/Aug 1988 Employer-Provided Retiree Health Benefits: Where Do We Go from Here? Stagg, Betty Malroy Compensation & Benefits Mgmt v4n3 PP 211-216 Spring 1988 Will 'Fasbee' Pinch Your Bottom Line? Loomis, Carol J. Fortune vl18nl4 pp: 93-108 Dec 19, 1988 The Big Unfunded Liability Postretirement Healthcare Benefits Searfoss, D. Gerald; Erickson, Naomi Jrnl of Accountancy v166n5 pp.28-39 Nov 1988 Crisis or Opportunity? Dopkeen, Jonathan; Rappaport, Anna; Bergthold, Linda Business & Health v6nl pp: 24-29 Nov 1988 Control Costs of Retiree Prescription Drug Benefits Curtiss, Frederic R. Personnel Jrnl v67n6 pp: 92-100 Jun 1988 Defusing the Postretirement Time Bomb Rosenberg, Hilary Institutional Investor v22n5 pp: 104-113 May 1988 H-29 The End of Status Benefits? Will Traditional Contract Principles Prevail? Lantry, Terry L. American Business Law Jrnl v26n2 pp: 363-372 Summer 1988 Funding Postretirement Welfare Benefit Plans Wolf, Henry C. Corporate Accounting v6n2 pp: 3-10 Spring 1988 The Giant Stirs: Post-Retirement Medical Benefits Pose a Huge Funding Problem Pinzur, Laurence; Havlin, Linda J. Cash Flow v9n7 pp: 35-38 Jul 1988 How Much Unfunded Liability Is Woven into Corporate Benefit Plans? Duggan, T. Patrick Risk Mgmt v35nl pp: 24-31 Jan 1988 Legal Aspects of Accounting for Postemployment Health Care and Life Insurance Benefits Werner, Charles; Kostolansky, John Jrnl of Accounting, Auditing & Finance v3nl pp: 62-72 Winter 1988 Looking Beyond the Myths of Aging America Dychtwald, Ken; Zitter, Mark Healthcare Financial Mgmt v42n2 pp: 62-66 Feb 1988 Planning for America's Demographic Time Bomb Brahs, Stuart J. Jrnl of the Institute of Certified Financial Planners v9nl pp: 7-11 Spring 1988 Postretirement Health Benefits and the Courts Lawson, Gary B. Pension World v24nl pp: 36-39 Jan 1988 Retiree Health Care: Pre-Funding Can Be Implemented Now Kesselman, Harvey; Zimmerman, Bruce Pensions & Investment Age vl6n22 pp: 49-50 Oct 17, 1988 The Titanic Liability Kimbrough, Richard E. Directors & Boards vl2n4 pp: 41-45 Summer 1988 3. Cost Control Unions Help Plan Cost-Containment Efforts Fletcher, Meg Business Insurance v22n7 PPR 20,22 Feb 15, 1988 Utilization Review Touted by Employers Kittrell, Alison Business Insurance v22n43 PP 3,41 Oct 24, 1988 H-30 A Case-Specific Experience Study of the Cost Effectiveness of Mail Service Drug Option Plans Barberi, Michael J.; Sydlaske, Michael D.; Wilson, David Benefits Qtrly v4n3 PP. 80-82 Third Quarter 1988 State Employee-Benefit Costs Rising Mackin, John P. Pension World v24n8 PP: 60-62 Aug 1988 Lessons Learned in the Battle to Control Health-Care Costs Chernow, Robert A. Pension World v24n8 PP. 37-38 Aug 1988 Study Sees High Deductible Use Anonymous National Underwriter (Property/Casualty/Employee Benefits) v92n30 PP- 25-26 Jul 25, 1988 New Approach Needed to Control Costs of Employees' Benefits Johnson, Richard E. Jrnl of Compensation & Benefits v4nl PP. 16-21 Jul/Aug 1988) Business and Industry React to AIDS Bussewitz, Walter Life Association News v83n6 PP- 46-52 Jun 1988 Direct Reimbursement Dental Plans Save Dollars Anonymous Employee Benefit Plan Review v42n7 PP. 10-12 Jan 1988 Study Sees Record Health Cost Anonymous National Underwriter (Property/Casualty/Employee Benefits) v92n9 PP. 17-19 Feb 29, 1988 4. Health Promotion Feeling Good: The Bottom Line on Wellness Programs North, Sterling CFO The Magazine for Chief Financial Officers v4n6 PP 53-55 Jun 1988 D. Flexible ("Cafeteria") Benefits Plans Flexible Benefits Programs Up Anonymous Supervision v49n10 PP 17-18 Oct 1988 The Future of Flexible Benefits Linstrum, Raymond C. Compensation & Benefits Mgmt vSnl PP 49-52 Autumn 1988 H-31 Sec. 125 Flexible Benefit Programs Gain Both Employers' and Employees' Support Anonymous Employee Benefit Plan Review v42nl0 PP: 24-28,120 Apr 1988 How Far Is Flexible? Biggins, Peter A. Topics in Total Compensation v2n3 PPR 235-244 Spring 1988 Phasing In a Flexible Benefits Plan Curran, Peter F. Small Business Report vl3n3 PPI. 26 Mar 1988 E. Family-Related Benefits: Parental Leave, Child Care, Elder Care Bringing Up Baby: The Myths and Realities of Day Care Wojahn, Ellen Inc. vlOnlI PP: 64-75 Nov 1988 Child Care: What Works -- And Doesn't Fierman, Jaclyn Fortune vl18nl2 PPR 163-176 Nov 21, 1988 Employers Look for Solutions to Child Care Problem; Changing Labor Force Demands Flexibility, Management Sensitivity, and Advancement Anonymous Employee Benefit Plan Review v43n4 PP 54-59 Oct 1988 Employers and Child Care: What Roles Do They Play? Hayghe, Howard V. Monthly Labor Review vl II n9 PP: 38-44 Sep 1988 The Child-Care Challenge Anonymous Financier vl2n9 PPR 3-4 Sep 1988 On-Site Child Care Works at Apple and Campbell; Two Companies Help with Child Care Costs; Supports for Child Care: Resource and Referral Anonymous Employee Benefit Plan Review v43n3 PP: 29-32 Sep 1988 Surveying Employees to Assess Child Care Needs Anonymous Employee Benefit Plan Review v43n3 PP 24-28 Sep 1988 Employer-Sponsored Day-Care Holds Risks Berman, Kari Business Insurance v22n41 PP 20,22 Oct 10, 1988 Day-Care Liability Cover Available, but Limited Berman, Kari Business Insurance v22n41 PR 17-18 Oct 10, 1988 H-32 Insuring Day-Care Centers: The Clouds Have Passed Orme, Steve American Agent & Broker v60n8 PP 64-66 Aug 1988 What a Caring Company Can Do McColl, Hugh L., Jr. Across the Board v25n7-8 PP: 38-41 Jul/Aug 1988 Why Child Care Is Good for Business Bloom, David E.; Steen, Todd P. American Demographics vlOn8 PP: 22-27,58-59 Aug 1988 Opportunities for Child Care La Fleur, Elizabeth K.; Newsom, Walter B. Personnel Administrator v33n6 PR 146-154 Jun 1988 Eldercare: Corporate Awareness, but Little Action Magnus, Margaret Personnel Jrnl v67n6 PR 19,23 Jun 1988 An Heir Care Success Story Halcrow, Allan Personnel Jrnl v67n6 PR 12-13 Jun 1988 Kids Get a Vote of Confidence from the CPI Ainsworth, Susan Jones; Ehrle, Carol Chemical Week vl42n24 PP. 29-30 Jun 15, 1988 Elder Care -- A Growing Concern Anonymous Business v38n2 PP 51-54 Apr/May/Jun 1988 Childcare Programs Benefit Employers, Too Petersen, Donald J.; Massengill, Douglas Personnel v65n5 PP; 58-62 May 1988 Caring for the Children Thompson, Roger Nation's Business v76n5 PR 18-25 May 1988 Benefits: 71% of Employers Say They Could Be Part of the Child Care Solution Campbell, Toni A.; Campbell, David E. Personnel Jrnl v67n4 PP 84,86 Apr 1988 Small Children: No Small Problem McKay-Rispoli, Kathleen Management World v17n2 PP 15-16 Mar/Apr 1988 D.C. Government and Business Join in Child Care Anonymous Employee Benefit Plan Review v42n9 PP 15-16 Mar 1988 H-33 No Child's Play. Employers Wrestle with Child-Care Benefits Berman, Kari Business Insurance v22nl I PP 3,27-28 Mar 14, 1988 Child Care: What Parents Want Cheskis-Gold, Rena American Demographics vl0n2 PP. 46-47 Feb 1988 Meeting Employees' Needs for Elder Care Belson, Peter S.; Dopkeen, Jonathan C.; Getchell, Wanda A. Compensation & Benefits Mgmt v4n2 PR 117-121 Winter 1988 Can Business Afford to Neglect Family Issues? Stautberg, Susan Schiffer CPA Jrnl v58n4 PP 6-10 Apr 1988 Kidding Aside: Parent Assistance Is Better Business Fernberg, Patricia M. Modern Office Technology v33n4 PP: 66-68 Apr 1988 The Sick-Child-Care Dilemma Solutions for Business Copeland, Tom Compensation & Benefits Mgmt v4n3 PP. 231-235 Spring 1988 The politics of workplace reforms: recent works on parental leave and a father-daughter dialogue. (Current Issues in Family Law) Delgado, Richard; Leskovac, Helen Rutgers Law Review 40 n4 1031-1058 Summ, 1988 F. Employee Stock Ownership Plans Most Firms Decide to Keep Stock Option Plans, Despite Effects of Tax Reform and Market Crash Anonymous Employee Benefit Plan Review v42n12 PP 10-11 Jun 1988 Study Details ESOPs' Impact on Retirement Income Anonymous Employee Benefit Plan Review v42n I PR 44-46 May 1988 G. Taxation IRS takes liberal line on defining plan liabilities. Estate Planning 15 n2 76-77 March-April, 1988 Conaway says 'further tinkering' in store for Section 89. (Harry J. Conaway) Moriarty, Michael S. Tax Notes 41 n7A 695 Nov 14, 1988 H-34 Pending changes in Section 89's life and health plan testing rules. Shultz, Paul T.; Langan, Michael J. Employee Relations Law Journal 14 n2 291-297 Aut, 1988 Multiemployer and governmental plans are subject to Section 89, former JCT official says. (Joint Committee on Taxation) Moriarty, Michael S. Tax Notes 41 n4 370-371 Oct 24, 1988 Leased employees may threaten Section 89 compliance. Gordon, David E. Tax Notes 40 n12 1299-1302 Sept 19, 1988 Congress will try to alleviate Section 89 headaches, JCT's Mason says. (Joint Committee on Taxation attorney Kent Mason) Matthews, Kathleen Tax Notes 40 n4 331-332 July 25, 1988 How will the welfare benefit plan nondiscrimination rules apply? The extraordinarily stringent rules of Section 89 will undoubtedly force many employers to consolidate their plans and administer them uniformly. Kelly, Peter M. Journal of Taxation 69 n2 76-81 Aug, 1988 The Intracacies of IRC Section 89. (book reviews) Practising Law Institute Journal of the American Society of CLU & ChFC 42 n2 76(2) March, 1988 Hewitt Associates Lists 'Red Flags" for Sec. 89; IRC Sec. 89 Expected to be Costly: Survey Anonymous Employee Benefit Plan Review v43n4 PP. 38-42 Oct 1988 H. Laws and Legislation The end of status benefits? Will traditional contract principles prevail? Lantry, Terry L. American Business Law Journal 26 n2 363-372 Summ, 1988 9th Circuit rejects bad faith suits on employee benefits. Angel, Carol Los Angeles Daily Journal vlOl n199 col 4 pl Oct 5, 1988 A review of the case law of the Court of Justice on migrant workers and social security, July 1986 to June 1987. Morgan, Marilynne A. Common Market Law Review 25 n2 391-402 Summ, 1988 H-35 Discriminatory disability plan void under ADEA. (Age Discrimination in Employment Act) Judge, Jay; Schirott, James R. Chicago Daily Law Bulletin v134 n152 col 2 p3 Aug 4, 1988 Congressionally Mandated Employee Benefits: How Do They Affect Human Resources and Employment Policy? Potter, Edward E. Compensation & Benefits Mgmt v4n4 PPh 269-272 Summer 1988 I. Alternative Work Arrangements: Flextime, Telecommuting Modern Office Technology and Employee Relations Susser, Peter A. Employment Relations Today vl5nl PPR 9-18 Spring 1988 V. LABOR RELATIONS A. Effects of Labor Organization The New Unionism: Employee Involvement in the Changing Corporation Heckscher, Charles A Twentieth-Century Fund Book Ser. Basic 03/1988 Wages, Nonwage Compensation, and Municipal Unions Zax, Jeffrey S. Industrial Relations v27n3 PP: 301-317 Fall 1988 Unit Determination Standards -- The NLRB Tries Rulemaking Koziara, Karen S.; Schwarz, Joshua L. Employee Relations Law Jrnl vl4nl PPR 75-93 Summer 1988 A Nonuniform Pricing Model of Union Wages and Employment Kuhn, Peter Jrnl of Political Economy v96n3 PP 473-508 Jun 1988 Union Wages Rise 2.2% in '87 Krizan, William G. ENR v220n2 PPT 50 Jan 14, 1988 Bargaining obligations and plant reopenings. Furfaro, John P.; Josephson, Maury B. New York Law Journal v200 nl col 1 p3 July 1, 1988 B. Arbitration Arbitrator's Utilization of Private Sector Criteria in Resolving Public Sector Disputes Dunn, John K.; Overton, Craig E. Jrnl of Collective Negotiations in the Public Sector vl7n3 PP 197-206 1988 H-36 Public Sector Interest Arbitration: An Examination of Relevant Normative Premises and a Test of Underlying Assumptions Rueschhoff, M. Susan Jrnl of Collective Negotiations in the Public Sector vl7n3 PP 177-196 1988 Ohio's Experience with Interest Arbitration for Public Safety Forces Graham, Harry Jrnl of Collective Negotiations in the Public Sector vl7n2 PR 105-113 1988 Grievance Arbitration in the Public Sector: Status, Issues, and Problems Coleman, Charles J. Jrnl of Collective Negotiations in the Public Sector vl7n2 PP 89-103 1988 Labor Arbitrators' Inference of 'Progressive Discipline' in Just Cause Clauses: The Courts' View Zirkel, Perry A. Jrnl of Collective Negotiations in the Public Sector vl7nl PR 27-34 1988 Deferral to Arbitration and Use of External Law in Arbitration St. Antoine, Theodore Industrial Relations Law Jrnl vlOnI PR 19-26 1988 Labor arbitrators'inference of "progressive discipline' in just cause clauses: the courts' view. Zirkel, Perry A. Journal of Collective Negotiations in the Public Sector 17 nl 27-34 Wntr, 1988 Arbitration. (Supreme Court Review) Bernstein, Sidney Trial 24 n4 13-15 April, 1988 The effect of grievants' gender on arbitrators' decisions. Bemmels, Brian Industrial and Labor Relations Review 41 n2 251-262 Jan, 1988 Discharges for Customer Discourtesy -- How Arbitrators Settle Disputes Couser, Ann; Hoffman, Joan; Jennings, Ken Employee Relations Law Jrnl v13n4 PR 667-680 Spring 1988 Labor Arbitration: The Participants' Perspective Ver Ploeg, Christine D. Arbitration Jrnl v43nl PR 36-43 Mar 1988 The Decisions of Interest Arbitrators Feuille, Peter; Schwochau, Susan Arbitration Jrnl v43nl PP 28-35 Mar 1988 H-37 C. Employees' Representation In Management (Employee Participation) Labor Relations: Toward an Uncertain Future Blocklyn, Paul L. Personnel v65nlO PP 18-24 Oct 1988 Labor and the Corporate Structure: Changing Conceptions and Emerging Possibilities Stone, Katherine Van Wezel University of Chicago Law Review v55nl PR. 73-173 Winter 1988 Labor and Management Pursue a Middle Ground Goldbaum, Ellen Chemical Week vl42n7 PRP 32-33 Feb 17, 1988 Union Versus Managerial Prerogative Perline, Martin M.; Poynter, David J. Personnel Jrnl v67n9 PP 126-134 Sep 1988 D. Litigation Recent Developments in Public Sector Labor Relations Law: The Garcia, Jackson Transit, Bowen, and Chicago Teachers Cases Rose, Winfield H. Jrnl of Collective Negotiations in the Public Sector vl7n3 PPR 207-219 1988 Public Sector Strikes, Labor-Management Relations, and the Common Law Hogler, Raymond Public Personnel Mgmt vl7nl PR 83-90 Spring 1988 Courts should limit civil actions by union workers. Bacon, David L.; Gomez, Angel, III Los Angeles Daily Journal vIOl n36 col 3 p4 Feb 19, 1988 E. Grievance Procedure Corporate Nonunion Complaint Procedures & Systems: A Strategic Human Resources Management Analysis McCabe, Douglas M. Praeger 11/1988 Grievance Initiation: A Literature Survey and Suggestions for Future Research Labig, Chalmer E., Jr.; Greer, Charles R. Jrnl of Labor Research v9nl PR 1-27 Winter 1988 H-38 F. Labor Discipline Lockouts and Replacements: The NLRB Gives Teeth to an Old Weapon Murphy, Thomas P. Employee Relations Law Jrnl v14n2 PP: 253-261 Autumn 1988 The Proper Use of Discipline Humphreys, L. Wade; Humphreys, Neil J. Management Solutions v33n5 PR. 5-10 May 1988 Dealing with the Abrasive Troublemaker McGinnis, Alan Loy Managers Magazine v63n2 PP: 31-32 Feb 1988 G. Collective Bargaining Concession Bargaining: Towards New Roles for American Unions and Managers Kassalow, Everett M. International Labour Review vl27n5 PP 573-592 1988 Accounting for the Proliferation of Two-Tier Wage Settlements in the U.S. Airline Industry, 1983-1986 Walsh, David J. Industrial & Labor Relations Review v42nl PP 50-62 Oct 1988 Bargaining Effects of the Mandatory-Permissive Distinction Delaney, John Thomas; Sockell, Donna; Brockner, Joel Industrial Relations v27nl PR 21-36 Winter 1988 Workers' Preferences in Concession Bargaining Dworkin, James B.; Feldman, Sidney P.; Brown, James M.; Hobson, Charles J. Industrial Relations v27nl PR 7-20 Winter 1988 A Time for 'New Age' Bargaining in Management-Labor Relations Hanson, Robert A. Executive Speeches v2n8 PR 12-14 Mar 1988 The Outlook for Collective Bargaining in 1988 Borum, Joan D.; Conley, James R.; Wasilewski, Edward J. Monthly Labor Review vlIlnl PR 10-23 Jan 1988 Bargaining and the Determinants of Teacher Salaries Easton, Todd Industrial & Labor Relations Review v41n2 PR 263-278 Jan 1988 Bargaining orders Baer, Henry P. New York Law Journal v199 n87 col 1 pl May 6, 1988 H-39 Wage Adjustments in Contracts Negotiated in Private Industry in 1987 Lacombe, John J., II; Sleemi, Fehmida R. Monthly Labor Review vllln5 PP 23-28 May 1988 Statutory subjects and the duty to bargain Dannin, E.J. Labor Law Journal 39 nl 44-52 Jan, 1988 H. Trends In Industrial Relations How the 1980's Have Changed Industrial Relations Freedman, Audrey Monthly Labor Review vii In5 PP: 35-38 May 1988 Have the 1980's Changed U.S. Industrial Relations? Dunlop, John T. Monthly Labor Review vI I n5 PP: 29-34 May 1988 H-40 Notes Noes / Notes Notes Il