Increased productivity in construction of Liberty vessels.

Substantial advances in productivity have been recorded in the construction of the Liberty vessel, a standardized cargo carrier. Average man-hour requirements per vessel delivered were reduced by more than one-half from December 1941, when the first two ships were delivered, to the end of April 1943. During the same period, the average number of days required between keel laying and delivery was diminished by more than three-fourths. These impressive reductions in labor and calendar-time requirements suggest what may be expected in other large-scale programs, such as the construction of destroyer-escort vessels and Victory ships. Changes in the man-hour and time requirements in the construction of the Victory vessels are given in the article on page 861.

Industrial injuries in the United States during 1942.

Continuing the trend noted for 1941 in manufacturing industries, the number of disabling work injuries during 1942 increased much more markedly than did either employment or total employee-hours worked. The respective increases, in nearly 21,000 identical manufacturing establishments, were 34 percent, 16 percent, and 22 percent. The frequency rate, which reflects the average number of disabilities per million employee-hours, rose 9 percent. The time loss resulting from work injuries during 1942 was also greater than that of 1941. The increase in injuries during 1942 was primarily in temporary total disabilities; relative percentages of fatalities and permanent impairments were lower than in 1941. Data for individual industries are given in the article on page 865.

Trends in factory wages, 1939-43.

Of particular influence among the many factors that have contributed to the changes which have taken place since 1939 in levels of money earnings and wage rates in manufacturing industry are composition of the labor force, sharp alterations in the demand for labor, minimum-wage action under the Fair Labor Standards Act, and (after October 1942) comprehensive social control over wage-rate changes. Sharp differences are evident in the movement of the various measures of "money wages"; for example, average weekly earnings of factory workers, between January 1939 and July 1943, increased by 84.4 percent, whereas in terms of purchasing power, the increase was only 48.5 percent. These and other important factors affecting wages are discussed in the analysis of wage trends in the manufacturing industry on page 869.

Cost-of-living adjustment of State and municipal wages.

Labor-supply problems have centered the attention of State, county, and municipal budget directors and administrators upon current problems of wage adjustments. Some local governments have shown an interest in wage-adjustment plans based on cost of living, but they question whether ordinances based on such a plan violate the constitutional provision that a legislative body (such as a city council) cannot delegate legislative power. Wage-adjustment problems confronting these administrators, and the cost-of-living adjustment plans adopted by local government bodies are summarized in the article on page 885.

Labor conditions in Yugoslavia.

In Yugoslavia nearly 80 percent of the gainfully occupied population are engaged in agriculture and allied occupations. Prior to the present war, wages were very low and in most industries provided less than a minimum standard of living. In wartime, wages have increased, but their rise has not equaled the

advance in the cost of living. The 8-hour day, 48-hour week, and extra payment for overtime are established by law. Labor organizations have lost to the State many of their functions, including that of collective bargaining. The State provided insurance covering life, invalidity, old age, sickness and accident. Page 895.

Labor conditions in Fascist Italy.

Italian industry is characterized by great extremes of the modern and medieval. Much of the manufacturing is done by handicraft workers and artisans and small shops. Agriculture, however, is the largest source of employment, accounting for nearly half of the gainfully occupied persons. Wages are low but are increased by bonuses and allowances of various kinds; on the other hand, there are numerous deductions (for social insurance, syndicate dues, recreation, etc.). Conditions under the Fascist Government, which integrated all social and economic activities with the political machinery, are described in the article on page 911.

Minimum-wage law for factory workers in Guatemala.

In July 1943 a decree was issued in Guatemala providing for the establishment of a minimum wage for factory workers. A scale of wages is to be set by the Executive, which will apply to all such workers earning less than 0.50 quetzal per day. Rates already in excess of the minimum cannot be lowered. Page 970. Wages in nonferrous-metal mining and milling.

Straight-time average earnings for workers in selected occupations in nonferrous metal mines and mills ranged from 64.5 cents an hour for pitmen to $1.311 an hour for power-shovel operators in June 1943. A recent survey by the Bureau of Labor Statistics reveals that somewhat more than one-half of these workers had average earnings ranging from 85 cents to $1.00 an hour. Page 971.

Findings of committee studying cost-of-living index.

At the request of the Secretary of Labor, the American Statistical Association appointed a special committee to examine the Bureau of Labor Statistics costof-living index in the light of certain criticisms of it. The findings of the committee were made public early in October 1943. The committee concluded that the index was "trustworthy" and "a satisfactory instrument for measuring what it attempts to measure average movements in the retail prices of goods and services purchased by city workers." The findings of the committee with regard to the specific criticisms, and its recommendations as the result of its study, are given in the article on page 994.

FOR NOVEMBER 1943

Increased Productivity in the Construction of Liberty Vessels1

Summary

SUBSTANTIAL advances in productivity, or reductions in manhour requirements, have been recorded in the construction of the Liberty vessel, a standardized cargo carrier. Between December 1941, when the first two ships were delivered, and the end of April 1943, the average man-hour requirement per vessel delivered was reduced by more than one-half. In the same interval the average number of days required between keel laying and delivery was diminished by more than three-fourths. Labor requirements for successive groups of ships constructed in individual yards have also been reduced considerably. In 5 yards constructing at least 100 vessels, the average number of man-hours expended on the last 5 ships delivered ranged from two-fifths to three-fifths of the average for the first 5. The decline tends to be large at the beginning; as full-scale production is achieved, the decline continues, but at a lower rate.

The impressive reductions in labor and calendar-time requirements suggest what may be expected in other large-scale programs, e. g., the construction of destroyer-escort vessels and Victory ships. Some manhour figures available for individual plants making one airplane model exhibit the same general pattern as do figures for individual yards making only Liberty vessels. It is also probable that a similar trend would be revealed by figures for a company making one automobile model or some other item of complex but standardized equipment on a large scale.

The Liberty Ship Program

The Liberty ship, or EC-2, is of 10,800 dead-weight tons. It is powered by triple-expansion, reciprocating steam engines and is relatively slow, making only about 11 knots per hour. The ship was designed for mass construction. Provision was made for subcontracting, subassembly, and prefabrication, not only in the design of the ship but also in the lay-out and equipment of the new yards participating in the program.

Prepared in the Bureau's Productivity and Technological Development Division by Frances J. Montgomery under the supervision of Irving H. Siegel.

The U. S. Maritime Commission began the construction of Liberty ships in 1941. By September 1943, about 1,500 such vessels had been delivered. In all, 17 yards have been engaged in their construction. The first 8 yards to make deliveries have 59 percent of total capacity (in terms of ways) and have, of course, accounted for a majority of the vessels. Output of all types of vessels in 1943 will approximate 19 million dead-weight tons; Liberty ships will comprise almost twothirds of this total.

Nature of Basic Data

The basic statistical information from which the two accompanying tables were prepared was obtained from the U. S. Maritime Commission. The data used in the man-hours indexes represent estimates of total contractual man-hours per vessel, including both direct and indirect labor. Direct man-hours include labor which is specifically chargeable to ship construction-machinery, hull and superstructure, and outfitting. Indirect man-hours include the allocated time of supervisory, technical, clerical, office, maintenance, power-plant, and other employees, and the instruction period of trainees. The time of corporation officers, auditors, general managers, superintendents, general foremen, etc., is excluded from the figures.

Since very few yards keep accounts of direct cost by individual hulls, direct man-hours per vessel usually have to be estimated from man-hours for a group of ships in the same contract. In accordance with a procedure devised by the U. S. Maritime Commission, the direct man-hour total for each month is distributed on the basis of the change in "percentage of labor completed" for each ship in the group. Total indirect man-hours are also distributed among the various vessels, usually in the same proportions as direct man-hours. Though the estimates of man-hours for successive groups of vessels delivered may reflect vagaries of accounting, the figures are sufficiently reliable to indicate the trend.

The importance of subcontract work, which is omitted from the man-hour figures, is not clear. Available evidence indicates that the percentage which subcontract man-hours comprise of the total is generally negligible, but it may vary from yard to yard and from contract to contract within the same yard. The long-term changes are believed, nevertheless, to be indicated correctly.

Changes in Man-Hour Requirements

As has already been stated, the average number of man-hours and the average number of days required to construct a Liberty vessel have been reduced considerably. In table 1, two indexes are presented-one reflecting the change in average man-hour requirements for vessels delivered monthly between December 1941 and April 1943, and the other showing the change in average number of days that elapsed between keel laying and delivery for the same vessels. Though not all Liberty shipyards are represented, coverage in terms of ships is virtually complete; the indexes are based on 901 of the 909 vessels delivered during the period considered.

TABLE 1.—Indexes of Unit Man-Hour Requirements and Time Requirements for Liberty Vessels Delivered, December 1941-April 1943 î

1 Prepared by U. S. Bureau of Labor Statistics from data of U. S. Maritime Commission.

Table 1 indicates that the average man-hour requirement for Liberty vessels delivered in April 1943 was but one-half the average for the vessels delivered in December 1941. Even after the attainment of a substantial construction rate, significant reductions in man-hours occurred. For example, between June 1942 (when monthly output first exceeded 50 vessels) and April 1943, the manhour requirement declined by one-third.

The reduction in days elapsed between keel laying and delivery was more pronounced than the reduction in man-hours. The average number of days for vessels delivered in April 1943 was less than onefourth of the number for vessels delivered in December 1941, and only about two-fifths of the average for June 1942.

In table 2, indexes are shown for man-hours spent on successive groups of 5 vessels in 5 major yards. Each of these yards delivered at least 100 vessels by May 1943. Although the rates of decline vary, the several indexes are similar in pattern.

Standardization and mass production explain to a large extent the observed reduction in man-hour requirements. Important factors in individual yards include improvements in scheduling on the part of management, greater regularity in deliveries of plates and components, the increasing efficiency of labor as it gains experience on recurrent processes, and the development of superior techniques (e. g., in welding and flame-cutting).