INDUSTRY & BUSINESS
Chemical industry labor costs soaring July production payrolls were 10% above January's, as wage rates and number of workers climbed More people working longer hours at higher rates of pay—that is the story in most segments of the economy this summer. In the chemical industry it is no different. In July, according to last week's data from the Bureau of Labor Statistics, the chemical industry was employing more production workers than ever before (more than 571,000) and paying them a record $3.00 an hour. The average workweek during the month—42.2 hours—was not a new high but it nearly matched the record 42.4 hours set in April 1965 and repeated in April this year. Not counting fringes, the nation's chemical companies put more than S72.3 million a week in the pay envelopes of production workers during July. The total was nearly 10% higher than the $65.9 million average in July 1965 and 9% higher than the average at the beginning of this year. Not only were hourly wage rates
higher (11 cents more than a year earlier and 7 cents more than in January), but the number of workers increased, too. In the first seven months of this year, 27,000 production workers were added to the industry's payrolls. During the same period, nearly 21,000 nonwage employees were added to the chemical industry's work force. On an index basis (1957-59 = 100), the chemical industry's production worker payroll costs in July were 151.7. A year earlier, the index was 138.2 and in January this year it was 139.4. For comparison, the Federal Reserve Board's index of production (1957-59 = 100 also) for chemicals and products was 174.1 in June last year, 180.8 in January this year, and 193.1 in May (the latest data available). The Bureau of Labor Statistics consumer price index (1957-59 = 100) was 112.9 in June this year, 111.0
STRIKES FOR DU PONT. At Parlin, N.J., these Du Pont employees walked off the job July 7, demanding big increases in wages and in fringe benefits. Still under way at press time, 16 C&EN AUG. 22, 1966
in January, and 110.1 in June 1965. The wholesale price index (also 195759 = 100) for chemicals and allied products was 97.7 in June, 97.6 in January this year, and 97.4 in June last year. A sampling of some of the bigger labor contracts (see table) signed in the chemical industry this year explains the dramatic rise in payroll costs. Settlements calling for immediate increases of less than 10 cents an hour are rare. The average has been about 11 cents, with several contracts calling for similar increases again in the second year. In the two Monsanto contracts, the increases scheduled for the third year of the contract are even higher. Some of these contracts stretch the Administration's 3.2% guideline rather severely. According to the President's Council of Economic Advisers, wage hikes of no more than 3.2% are in line
the strike is the year's second big one for Du Pont, which had not had a serious work stoppage in 10 years. Struck earlier was the Louisville neoprene plant
with the nation's increase in productivity and thus noninflationary. According to International Chemical Workers Union president Walter L. Mitchell, his union's 85 agreements signed in the first half of this year called for mean average wage increases of 12.3 cents an hour. In the last half of 1965, the mean for 92 ICWU settlements was 8.3 cents an hour. Although higher than recent years' settlements, this year's contracts are still far short of the 50 cents to $1.00 Mr. Mitchell called for last year at his union's first collective bargaining conference (C&EN, Dec. 6, 1965, page 21). The program he outlined at that conference for strengthening the union's bargaining power will be put to a vote of the membership in October at the convention in Montreal. Mr. Mitchell attributes the 50 (/o gain in this year's wage hikes to "the industry's desperate desire to delay effective coordinated bargaining." Coordinated bargaining is one of the keys to the Mitchell program. In one type of coordinated bargaining situation, two or more local unions serving one company are able to strengthen their hands at the bargaining table by striking or threatening to strike at the same time. Several ICWU locals were able to strike American Cyanamid simultaneously this spring. Whether they gained anything more than they would have gained otherwise is debatable (C&EN, June 20, page 18). Six strikes. Strike activity has been unusually high this year. Of the 14 contracts listed, strikes preceded settlement in six—at the two Allied plants and at American Cyanamid, Colgate-Palmolive, Du Pont, and Hercules. At the Monsanto plant in St. Louis and at the five Lever Bros, plants, the membership had voted to authorize their officers to call strikes if necessary. The several-week strike at Du Pont's neoprene plant in Louisville, Ky. (C&EN, March 28, page 31) was the first serious strike at a Du Pont plant in 10 years. Now, at Parlin, N.J., Du Pont is being struck again. The strike there has been under way since July 7, when 1600 workers walked off their jobs. The Parlin union first asked for a 20 cent-per-hour wage hike. Later it reduced the wage demand to 17 cents. Among its other demands are: full payment of health insurance by the company (Du Pont pays 50% now), higher pay for job classifications in which the work has increased, doubletime pay for Sunday work, another paid holiday, a cost-of-living clause, an increase in shift differentials of 15 to 30 cents, and putting into the contract some existing verbal agreements on seniority and work assignments.
Sampling of this year's labor contracts shows immediate increases averaging 11 cents an hour
Company and location
No. of workers covered by contract
Union
Wage rate per hour before new contract
Hourly increase on settlement
Deferred increases
2700
District 50, U n i t e d Mine Workers
$3.13 minim u m ; 3.50 maximum
9 cents
3% in s e c o n d t h i r d years
545
District 50, U n i t e d Mine Workers
$2.59 minim u m ; 3.60 maximum
9 cents*
9 c e n t s per hour in second and third years
A m e r i c a n Cyan740 amid Wallingford, C o n n .
International Chemical Workers Union
$2.45 mini- 9 c e n t s m u m ; $3.23 m i n i m u m ; 11 c e n t s maximum maximum
8 to 10 c e n t s in seco n d year
Colgate-Palmolive Jeffersonville Ind.
945
International Chemical Workers Union
$2.58 mini- 12 c e n t s m u m ; $3.45 m i n i m u m maximum 14 c e n t s maximum
14 c e n t s m i n i m u m a n d 16 cents maxim u m in s e c o n d year
1500
Independent
$3.61 maximum
10 to 14 cents
3 c e n t s in October 1966; 7 c e n t s in 1967; a n d 10 cents in 1968
Hercules, Inc. Parlin, N.J.
935
International Chemical Workers Union
$2.80 mini- 12 c e n t s m u m ; $3.50 maximum
2 c e n t s in September 1966; 10 c e n t s in March 1967
Lever Bros, (master c o n t r a c t ) Los Angles, Calif. Edgewater, N.J. Baltimore, M d . St. Louis, Mo.
3500
International Chemical Workers Union
$2.59 mini- 12 c e n t s ) m u m ; $3.55 maximum
3 c e n t s in December 1966; 10 c e n t s in M a r c h 1967
Allied C h e m i c a l Bermuda Hund r e d , Va. Allied C h e m i c a l W i l m i n g t o n , Del.
Du Pont Louisville, Ky.
Hammond, Ind.
and
1200
Oil, C h e m i c a l and Atomic Workers
Monsanto St. Louis, M o . (Queeny plant)
1400
International Chemical Workers Union
$2.91 mini- 11 c e n t s m u m ; $3.60 maximum
10 c e n t s in t h e seco n d year; 14 c e n t s in t h e t h i r d year
Monsanto Everett, Mass.
457
International Chemical Workers Union
$2.72 m i n i - 10 c e n t s m u m ; $3.52 maximum
10 c e n t s in s e c o n d year; 12 c e n t s in t h i r d year
Mobay Chemical New Martinsville, W.Va.
337
International Chemical Workers Union
$2.81 minim u m ; $3.43 maximum
14 c e n t s
11 c e n t s in s e c o n d year a n d 11 c e n t s in t h i r d year
Pennsalt Wyandotte, Mich.
^50
Oil, C h e m i c a l and Atomic Workers
$2.74 minim u m ; $3.60 maximum
6 cents 1 *
7 to 9 c e n t s in seco n d year
Reichhold Ferndale, M i c h .
264
Oil, C h e m i c a l and Atomic Workers
$2.65 m i n i 12 to 19 m u m ; $3.65 c e n t s * maximum
9 to 14 c e n t s in seco n d year; 9 to 12 c e n t s in t h i r d year
Union Carbide T o n a w a n d a , N.Y.
820
Oil, C h e m i c a l and Atomic Workers
$2.34 m i n i 8 to 12 m u m ; $3.80 c e n t s maximum
C o n t r a c t provides for r e o p e n i n g of t a l k s on wages in s e c o n d year
Wyandotte Geismar, La.
132 Oil, C h e m i c a l and A t o m i c Workers
$2.62 m i n i m u m ; $3.79 maximum
10 t o 15 cents
5 to 8 c e n t s in seco n d year
* Contract has cost of living clause providing for a 1 cent-per-hour increase for each 0.4-point increase in the Bureau of Labor Statistics Consumer Price Index.
AUG. 22, 1966 C&EN
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