Category: Exam Questions

Sumner H. Slichter was in his day a really big gun in economics at Harvard. As an early “dean of labor economics”, he definitely deserves a post of his own, but one I’ll postpone for later. 

Fun Facts: One of the teaching assistants for the course, Spencer Drummond Pollard, was a Rhodes scholar, went on to teach at UC Berkeley and Los Angeles, Whittier College and has two filmwriting credits listed in the internet movie data base. He married the screenwriter Helen Deutsch in 1946, but that marriage lasted less than one year. Not incidentally he was James Tobin’s undergraduate economics tutor who suggested that they devote their sessions to “this new book from England,” The General Theory of Employment, Interest and Money.

________________________

Teaching Assistants

Spencer Drummond Pollard (1910-1989)
Harvard Economics Ph.D. (1939)

Spencer Drummond Pollard, A.B. (Harvard) 1932.

Subject, Economics. Special Field, Labor Problems. Thesis, “Some Problems of Democracy in the Government of Labor Unions, with special reference to the United Mine Workers of America and the United Automobile Workers of America.” Director, Educational Film Institute, New York University, and Supervisor, New York University Film Library.

Source: Harvard University. Report of the President of Harvard College, 1938-39, p. 197.

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *

Lloyd George Reynolds (1910-2005)
Harvard Economics Ph.D. (1936)

Lloyd George Reynolds, B.A. (Univ. of Alberta) 1931, M.A. (McGill Univ.) 1933.

Subject, Economics. Special Field, Labor Problems. Thesis, “The British Immigrant: his Social and Economic Adjustment in Canada.” Instructor in Economics and Tutor in the Division of History, Government, and Economics.

Source: Harvard University.  Report of the President of Harvard College, 1935-36, p. 161.

________________________

Course Enrollment, 1938-39

[Economics] 81a. Professor Slichter, Mr. Pollard and Dr. Reynolds.—Labor Problems.

Total 63: 1 Graduate, 30 Seniors, 25 Juniors, 4 Sophomores, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1938-39, p. 98.

________________________

Course Outline, 1938-39

ECONOMICS 81
LABOR PROBLEMS

Outline and Readings for the First Term
[Pencil: “38-39”]

Introduction

1. The Subject Matter of the Course—the Operation of the Institution of Wages under Private Capitalism

Part One
Wages and Labor Conditions Under Competition

1. The Labor Force and the Labor Market

Required:

Goodrich, Carter, Migration and Economic Opportunity, Appendix A.
Lynd, R.L., Middletown in Transition, Chap. 2.
Woytinsky, W.S., Labor in the United States, pp. 16-24, 30-42.

Suggested for Reference:

Douglas, P.H., Real Wages in the United States, Chaps. 1 and 32.
Florence, P.S., Theory and Fatigue and Unrest, Chaps. 2,3.
Fortune, “Labor and Steel”, May, 1936.
Hammond, J.L., The Town Labourer
Lescohier, D., The Labor Market, Chaps. 1,6.
MacDonald, Labor Problems and the American Scene, Part 2.
Recent Social Trends, v. I, Chap. 6.

2. The General Factors determining Wage Rates and the Income of Wage Earners
   1. The trend of real wages since 1890
   2. The marginal productivity theory of wages
   3. Factors influencing the supply of labor
   4. Factors influencing the demand for labor
   5. Technical progress, wages, and employment
   6. Cyclical fluctuations of wages

Required:

Douglas, P.H., Theory of Wages, pp. 34-49, 68-96
Hansen, A. Economic Stabilization in an Unbalanced World, Chap. X.
Meade, J.E., Economic Analysis and Policy, Part 1, Chap. 7.
Recent Social Trends, v. I, Chaps. 1, 2.
Slichter, S.H., Towards Stability, pp. 114-24, 133-42.

Suggested for Reference:

Florence, P.S., Economics of Fatigue and Unrest, Chaps. 6-11
Hicks, J.R., Theory of Wages, Chap. 1
Jerome, H., Mechanization of Industry, Chaps. 3, 6, and pp. 326-403
Recent Economic Changes, v. I. pp. 96-146
Slichter, S.H., Modern Economic Society, Chap. 24

3. Wage Differences
   1. Bargaining advantages of employers
   2. Bargaining strength of workers, strategic position of some workers, reductions in supply
   3. Differences among industries—growing, declining industries, differences in labor cost, etc.
   4. Selling competition and wage rates
   5. Wage differences between occupations
   6. Wage differences between regions

Required:

Dobb, M., Wages, Chaps. 5, 6
Mathewson, Restriction of Output among Unorganized Labor
Taussig, F.W., Principles of Economics, v. II, Chap. 47

Suggested for Reference:

Dollard, Caste and Class in a Southern Town
Edwards, A.M., “Social-Economic Grouping of the Gainful Workers of the United States”, Journal of the American Statistical Association, December, 1933, pp. 377-397.
Encyclopedia of the Social Sciences, Article on the Company Town
Feldman, H., Racial factors in American Industry
Frain, H., Machine-tool Occupations in Philadelphia
Mathewson, Restriction of Output among Unorganized Labor
Pigou, A.C., Economics of Welfare, Part III, Chaps. 9 and 14

4. Hours and Working Conditions

Required:

Millis, H.A. and Montgomery, R.E., Labor’s Progress and Problems, v. I, pp. 488-516.
Slichter, S.H., Modern Economic Society, Chap. 25

 

Part Two
Problems of Trade Unionism and Collective Bargaining

1. The Development of Labor Unions in the United States
   1. Origin and form of the earliest unions
   2. Fluctuation of membership with business activity 1800-1885
   3. The three business upswings accounting for most of the present membership of labor unions
      1896-1903
      1914-1918
      1933-1938
   4. Comparison of three major union groups
      Knights of Labor
      F. of L.
      C.I.O.

Required:

Perlman, S., History of Trade Unionism in the United States, Chaps. 12, 13 and 14
Encyclopedia of Social Sciences, 15 pages selected from the following articles: American Federation of Labor (7 pages), Knights of Labor (3), Labor Parties (12), Labor Movement (14), Trade Unions (52).

Suggested for Reference:

Gompers, Samuel, The American Labor Movement—its Makeup, Achievements, and Aspirations
Gompers, Samuel, Seventy Years of Life and Labor

2. The Contemporary Scene in American Unionism
   1. The principal industries organized
   2. The focal areas of organization
   3. Kinds of inter-union organizations—federations, city centrals, regional groups, etc.
   4. Major areas of struggle in the present situation
   5. Changes in the pressure-alignments of community life in the unionized areas

Suggested for Reference:

Brooks, R.R., When Labor Organizes, Chap. 6
Walsh, R., The C.I.O.

3. Comparison with Labor Movements in Other Countries
   1. The major periods of the English Labor Movement
   2. Major events and trends in the English Movement 1920-1938
   3. Characteristics of French, German, and Scandinavian Unionism
   4. The spread of unionism to industrially outlying regions
   5. Special factors molding the course of unionism in the United States
   6. The future of the relation between Labor and Politics in this country

Required:

Norgren, P.H., “Sweden, Where Employers Compromise”, Harvard Business Review, Summer Issue, 1938.
Report of the President’s Commission on Industrial Relations in Great Britain

Suggested for Reference:

Clapham, J.H., Economic History of Modern Britain, Machines and National Rivalries, Chap. 8 and Epilogue
Perlman, S., A Theory of the Labor Movement, Chaps. 1, 3, and 4
Richardson, J.H., Industrial Relations in Great Britain
Saposs, D.J., The Labor Movement in Post-War France

4. Trade Union Structure and Government
   1. The parts of a trade union—locals, districts, nationals
   2. How local unions function
   3. How national unions function
   4. Trends in trade union government
      1. Centralization of finances
      2. Centralization of control over strikes
   5. The leaders and the rank and file—democracy in trade unions

Required:

Hoxie, R.F., Trade Unionism in the United States, Chap. 7

Suggested for Reference:

Brooks, R.R., When Labor Organizes, Chap. 9
Furniss, E.S., Labor Problems, pp. 280-303
Hoxie, R.F., Trade Unionism in the United States, Chap. 5
Mitchell, John, Organized Labor, Chap. 10

5. Collective Bargaining—the Regulation of Working Conditions
   1. Trade agreements
      1. What are the problems with which trade agreements attempt to deal
      2. Local, regional, and national agreements
      3. Procedure agreements v. regulating agreements
      4. Handling cases under trade agreements
   2. The regulation of the opportunity to work
      1. Control of hiring
      2. The control of layoffs
      3. The conflict between the worker’s interest in opportunity and his interest in security
      4. Problems of seniority and equal-division-of-work
      5. Efforts of unions to protect the older worker
   3. The efforts of unions to deal with technological change
      1. Opposition
      2. Competition
      3. Control of new processes and machines
      4. Compensation
      5. Make work
   4. The attitude of unions toward “scientific management”
   5. Union-management-cooperation

Required:

Block, Louis, Labor Agreements in Coal Mines, Chaps. 2, 3, 5, and 6, and pp. 217-247.
Slichter, S.H., “The Contents of Collective Agreements”, Journal of the Society for the Advancement of Management, January, 1938

Suggested for Reference:

Barnett, G.E., Chapters on Machinery and Labor
Encyclopedia of Social Sciences, Articles on Coal Industry (18), Collective Bargaining (4), Construction Industry (17), Garment Industries (12), Glass and Pottery Industries (7), Iron and Steel Industry (7), Labor-Capital Cooperation (5), Railroads (7), Textiles (6), Trade Agreements(3)
McCabe, D.A., Industrial Relations in the Pottery Industry
Monthly Labor Review, September, 1936, “Collective Bargaining in the Hosiery Industry”
Nyman, R.C., Union-Management Cooperation in the Stretch-Out
Perlman, S., A Theory of the Labor Movement, Chaps. 6 and 7
Whitehead, T.N., Leadership in a Free Society
Wood, L.A., Union-Management Cooperation on the Railroads, Chaps. 7, 8, 9, and 14

6. Collective Bargaining—Fixing the Price of Labor
   1. The movement of bargained wages and “free” wages
   2. The effect of bargained wage rates upon employment and unemployment
   3. The effect of bargained wage rates upon saving
   4. The effect of bargained wage rates upon the credit of employers and upon investment opportunities
   5. Some problems of price fixing under collective bargaining
      1. Problems presented by non-union competition
      2. Problems presented by market shifts and inter-industry competition
      3. Problems presented by the business cycle

Required:

Feldman, H., Problems in Labor Relations, Problems 5 and 65
Palmer, Gladys, Union Tactics and Economic Change, Chaps. 3, 4, & 6
Slichter, S.H., “The Adjustment to Instability”, Proceedings of the American Economic Association, March, 1936

Suggested for Reference:

Blum, S., Labor Economics, Chap. 18
Robertson D.H., “Wage Grumbles” in Economic Fragments
Slichter, S.H., “Notes on Collective Bargaining” in Explorations in Economics

7. Collective Bargaining—the Administration of Trade Agreements

Required:

Metcalf, H.C., and Others, Collective Bargaining for Today and Tomorrow, Chaps. 4, 5, and 6
Gilbertson, H.S., “Management and Collective Bargaining”, Harvard Business Review, Summer Issue, 1938
Leiserson, W.M., Right and Wrong in Labor Relations
Slichter, S.H., “Collective Bargaining at Work,” Atlantic Monthly, January, 1938
Steel Workers Organizing Committee, How to Handle Grievances
Taylor, Don H., “Problems in Collective Bargaining”, in Collective Bargaining and Cooperation
Taylor, George W., “Experiences in Collective Bargaining” in Collective Bargaining and Cooperation

 

Part Three
Public Policy and Collective Bargaining

1. Protection of the Right to Organize
   1. The principle of non-interference by employers
   2. The adjustment of disputes over representation
   3. The obligation to bargain
   4. Should the worker’s freedom of choice be protected against interference from other workers

Required:

Brooks, R.R., When Labor Organizes, Chaps. 3 and 5
Douglas, P.H., “American Labor Relations Boards”, American Economic Review, December, 1937
Feldman, H., Problems in Industrial Relations, Problems 56 and 57
Slichter, S.H., “The Government and Collective Bargaining”, Annals of the American Academy of Political and Social Sciences, March 1935, v. 178, pp. 107-122.

Suggested for Reference:

Frankfurter, F., Mr. Justice Holmes and the Supreme Court
National Labor Relations Board, Annual Report, 1937
National Labor Relations Board, Governmental Protection of Labor’s Right to Organize

2. The Adjustment of Industrial Disputes
   1. Mediation
      1. Why can mediation sometimes help
      2. The machinery and methods of mediation
   2. Arbitration
      1. The uses of arbitration
      2. Should mediators arbitrate or arbitrators mediate
      3. Some problems of arbitration—does it tend to interfere with the process of negotiation
   3. Emergency boards

Required:

Either Witte, E.E., The Government in Labor Disputes, Chap. 11 and Appendix A or
Twentieth Century Fund, Labor and the Government, pp. 114-122, and Chap. 8

Suggested for Reference:

Barnett, G.E., and McCabe, D.A., Mediation, Investigation, and Arbitration in Industrial Disputes
Maclaurin, W.R., “Compulsory Arbitration in Australia”, American Economic Review, March, 1938, v. XXVIII, pp. 65-82
Selekman, B., Law and Labor Relations—a Study of the Industrial Disputes Investigations Act of Canada

3. The Control of Industrial Warfare
   1. The legality of strikes and lockouts
   2. The legality of boycotts
   3. The legality of strike activities
   4. Remedies—injunctions, damage suits

Required:

Baldwin and Randall, Civil Liberties and Industrial Conflict
Feldman, H., Problems in Labor Relations, Problem 58
Witte, E.E., The Government in Labor Disputes, Chaps. 2, 3, and 4

4. The Enforcement of Trade Agreements
   1. The legal status of trade agreements
   2. Scattered experience in the United States
   3. The experience of the National Boards of Adjustment on the Railroads
   4. Foreign experience

Suggested for Reference:

Rice, W.G., Jr., “Collective Agreements”, Harvard Law Review, v. 14, pp. 572-608
Witte, E.E., The Government in Labor Disputes, pp. 14-17

5. The Regulation of Trade Unions
   1. Incorporation; Suability
   2. Registration
   3. Publication of accounts
   4. Safeguarding the democratic process within trade unions
   5. Civil rights within trade unions
   6. Government control versus self-regulation

Required:

City Club of New York, The Responsibility of Trade Unions
Witte, E.E., The Government in Labor Disputes, pp. 149-150

Suggested for Reference:

Black, F.R., “Should Trade Unions and Employers’ Associations Be Made Legally Responsible”, Special Report of the National Industrial Conference Board
Brandeis, L.D., Greenbag, v. 15, pp. 11-14
Landis, J.M., The Administrative Process
Massachusetts Bureau of Statistics, Annual Report, 1906, pp. 125-144
Swabey, Marie, Theory of the Democratic State

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics, 1938-39”.

________________________

Reading Period, First Term

Economics 81: Read the following:

Pigou, A.C., Economics of Welfare, Part III, Chap. IX, XIV, XVI;
and 200 pages from one of the following:

1. 1. 1. Barnett, G.E., Chapters on Machinery and Labor.
      2. McCabe, D.A., The Standard Rate in American Trade Unionism.
      3. Ward, L.A., Union-Management Cooperation in the Railroads.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics, 1938-39”.

________________________

ECONOMICS 81
LABOR PROBLEMS

Outline and Readings for the Second Term
[Pencil: “38-39”]

Part Four

6. The Public Regulation of Wages and Hours
   1. Minimum wages as a substitute for collective bargaining
   2. Minimum wages as a basis for collective bargaining
   3. The economic principles involved in the setting of minimum rates
   4. The pressure politics of minimum rate setting
   5. The economic consequences of specific rates for other wage rates, for employment and for non-wage groups
   6. Special problems in minimum wage setting
      1. Problems of applying a minimum in piece working plants
      2. The competition of home work
      3. The problem of geographical differentials
      4. The problem of allowances for learners and handicapped workers
   7. Some problems of law in the Federal regulation of wages
   8. Some problems of administration under the Wages and Hours Act of 1938
   9. Net experience with minimum wage regulation in other countries

Required:

Millis, H.A., and Montgomery, R.E., Labor’s Progress and Some Basic Labor Problems, pp. 278-375

Suggested for Reference:

Burns, E.M., Wages and the State
Commons, J.R., and Andrews, J.A., Principles of Labor Legislation
Foenander, O. deR., Toward Industrial Peace in Australia (1937 edition)
Pound, Roscoe, ed., The Supreme Court and Minimum Wage Legislation
Riches, E.J., “Conflicts of Principle in Wage Regulation in New Zealand”, Economica, August, 1938
Women’s Bureau, U.S. Department of Labor, “Special Studies of Wages Paid to Women and Minors in Ohio Industries Prior and Subsequent to the Ohio Minimum Wage Law”, Bulletin 145

Part Five
The Problem of Unemployment

1. The Kinds of Unemployment
   1. Seasonal unemployment
   2. Technological unemployment
   3. Frictional unemployment
   4. Cyclical unemployment
   5. Stranded areas
   6. Who are the unemployed
   7. Why unemployment is difficult to measure

Required:

Millis, H.A., and Montgomery, R.E., Labor’s Risks and Social Insurance, Chap. 1

Suggested for Reference:

Douglas, P.H., and Director, A., The Problem of Unemployment, Chaps. 6, 7, 8, 9, 10 and 11
Gilboy, E., “Unemployed: Income and Expenditure,” American Economic Review, 1937
Lubin, I., The Absorption of the Unemployed by American Industry
Myers, R.J., “Occupational Readjustment of Displaced Skilled Workers”, Journal of Political Economy, August, 1929, v. XXXVIII, pp. 473-489

2. Unemployment Policies
   1. Policies designed to reduce unemployment
      1. Public employment exchanges
      2. Transference and training
      3. Planning of public works
   2. Policies designed to support the unemployed
      1. Work spreading
      2. Flexible working week
      3. Direct relief
      4. Work relief
      5. Unemployment compensation

Required:

Davison, R.C., British Unemployment Policy, Chap. 6
Millis, H.A., and Montgomery, R.E., Labor’s Risks and Social Insurance, Chaps. 2 and 3, or Hill, A. C. C., and Lubin, I., The British Attack on Unemployment, Chaps. 4, 5, 6

Suggested for Reference:

Atkinson, R. C., Adencrantz, L.C., and Deming, B., Public Employment Service in the United States, Chaps. 1 and 3
Beveridge, W.H., Unemployment
Chegwidden, T.S., and Myrddin-Evans, G., The Employment Exchange Service of Great Britain
Davison, R.C., British Unemployment Policy
Douglas, P.H., and Director, A., The Problem of Unemployment, Chaps. 6-11, 18-21
Gilson, M.B., Unemployment Insurance in Great Britain
Kiehel, C.A., Unemployment Insurance in Belgium
Spates, T.G., and Rabinovitch, G.S., Unemployment Insurance in Switzerland
Stewart, B.M., Unemployment Compensation in the United States, Chaps. 19 and 22

3. Some Problems of Unemployment Compensation
   1. Coverage
   2. Contributions
      1. Should employees contribute
      2. Should the state contribute
      3. The incidence of unemployment contributions
   3. Pooled versus plant reserve funds
   4. Merit rating
   5. Benefits
      1. Amount
      2. The waiting period
      3. Duration
      4. Partial unemployment
      5. Flat rate v. credits for dependents
      6. Eligibility for benefits
      7. Testing the willingness to work
      8. Problems presented by seasonal industries
   6. Interstate workers
   7. Federal-state relations
   8. Coordination of employment service and unemployment compensation service
   9. Protecting the solvency of the reserve fund

Required:

Haber, W. Some Current Problems in Social Security
Hill, A.A.C., Jr., and Lubin, I., The British Attack on Unemployment, Chaps. 11, 12, 13, 15, and 16
Lewisohn, Sam A., “Some Major Issues in Unemployment Insurance”, Proceedings of the Academy of Political Science, June, 1935, pp. 339-345
Stewart, Bryce M., “Federal and State Unemployment Insurance”, Proceedings of the Academy of Political Science, June, 1935, pp. 346-364

Suggested for Reference:

Davison, R.C., British Unemployment Policy
Kulp, C.A., Social Insurance Coordination
Kulp, C.A., “European and American Social Security Parallels”, American Labor Legislation Review, March, 1938
Matcheck, Walter and Atkinson, R.C., The Administration of Unemployment Compensation Benefits in Wisconsin
Neuberger, Otto, The Administration of Short-Time Benefits in Germany
Simpson, Smith, “Should Unemployment Compensation be Based on Earnings or Need”, American Labor Legislation Review, September, 1938, pp. 136-140
Stewart, B.M., Planning and Administration of Unemployment Compensation in the United States
Weiss, H., “Unemployment Prevented Through Unemployment Compensation”, Political Science Quarterly, March, 1938, pp. 14-35
Wunderlich, Frieda, “What Next in Unemployment Compensation”, Social Research, February, 1938, pp. 37-54

4. Relations between Unemployment Compensation and Relief

Required:

Hill, A.C.C., and Lubin, I., The British Attack on Unemployment, Chaps. 11 and 12
Somers, H.M., “Job Finding Joins Relief”, Survey, August, 1938, pp. 263-264

Suggested for Reference:

Burns, E.M., and Malisoff, H., “Administration Integration of Unemployment Insurance and Relief in Great Britain”, Social Service Review, September, 1938
Davison, R.C., British Unemployment Policy, Chaps. 2 and 4

5. Problems of Relief and Relief Administration

Required:

Eckler, A. Ross, and Fairley, L., “Relief and Reemployment”, Harvard Business Review, Winter, 1938
Haber, William and Somers, H.M., “The Administration of Public Assistance in Massachusetts”, Social Service Review, v. XII, September, 1938
Hill, A.C.C., and Lubin, I., The British Attack on Unemployment, Chap. 15

Suggested for Reference:

Fortune Magazine, “Relief”, February, 1936
MacNeil, D.H., Seven Years of Unemployment Relief in New Jersey

 

Part Six
The Problem of Industrial Accidents and Occupational Disease

1. The Magnitude of the Problem
2. Employers’ Liability
3. Workmen’s Compensation
   1. Rights
   2. Standards
   3. Administrative problems
   4. Medical care
4. Accident Prevention
5. Rehabilitation of Injured Workers

Suggested for Reference:

Dodd, W.F., Administration of Workmen’s Compensation
Downey, E.H., Workmen’s Compensation
Millis, H.A., and Montgomery, R.E., Labor’s Risks and Social Insurance, Chap. 4
Vernon, H.M., Accidents and their Prevention

 

Part Seven
The Problem of Sickness Among Wage Earners

1. The Amount and Incidence of Sickness
2. Insurance Against Loss of Time
3. Medical Care and Benefits
4. Compulsory Health Insurance Abroad
5. Problem of Health Insurance

Required:

Millis, H.A., and Montgomery, R.E., Labor’s Risks and Social insurance, Chaps. 5, 6, and 7
Syendstricker, E., “Health Insurance and the Public Health,” Proceedings of the Academy of Political Science, June, 1935, pp. 284-292

Suggested for Reference:

Committee on the Costs of Medical Care, Final Report, Chaps. 1-6
Williams, P., The Purchase of Medical Care, Chap. 1

 

Part Eight
Security for Old Age

1. The Problem of the Older Worker in Modern Industry

Required:

Brown, D., “Proposals for Federal and State Cooperation for Old Age Security”, Proceedings of the Academy of Political Science, June, 1935, pp. 276-281
Twentieth Century Fund, More Security for Old Age, Chap. 1

2. Private Pension Plans

Required:

Twentieth Century Fund, More Security for Old Age, pp. 69-73

3. State Old Age Assistance Plans

Required:

Twentieth Century Fund, More Security for Old Age, pp. 69-73

4. The Federal Old Age Pension Plan
   1. An outline of the plan
   2. Why a federal plan
   3. Why a contributory plan
   4. Problems of the Reserve Fund
   5. Some proposed modifications of the law

Required:

Advisory Council on Social Security, Final Report
Brown, J. Douglas, “The Development of the Old Age Insurance Provisions of the Social Security Act”, Law and Contemporary Problems, April, 1936
Brown, J. Douglas, “Old Age Security, a Problem of Industry and Government”, American Management Association, Economic Security, Pensions and Health Insurance, Personnel Series 20, pp. 3-9
Haber, W., Some Current Problems in Social Security
Linton, M.A., “The Quest for Security in Old Age”, Proceedings of the Academy of Political Science, June, 1935, pp. 373-389
Twentieth Century Fund, More Security for Old Age, pp. 73-158, and 31-68

Suggested for Reference:

Aldrich, W.W., “An Appraisal of the Federal Social Security Act”
Witte, E.E., “Old Age Security in the Social Security Act”, Journal of Political Economy, February, 1937, pp. 1-44

 

Part Nine
Personnel Administration

1. Should Business Enterprises Formulate Definite Labor Policies
2. The Matters with which a Labor Policy should Deal
3. The Determination of Personnel Policies
4. The Execution of Personnel Policies—the Relation between the Personnel Department and Operating Officials
5. Some Problems of Personnel Administration
   1. Selection of employees
   2. Training of employees
   3. Handling discharge cases
   4. Problems in making layoffs
6. The Role of Personnel Administration under Collective Bargaining with Trade Unions
7. The Contribution of Personnel Administration to the Improvement of the Conditions of Labor

Required:

Bergen, H.B., “Basic Factors in Present-Day Industrial Relations”, Personnel, November, 1937
Bergen, H.B., Fundamentals of a Personnel and Industrial Relations Program
Tead, Ordway and Metcalf, H.C., Principles of Personnel Administration, Chaps. 4, 12 and 25

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics, 1938-39”.

________________________

Reading Period, Second Term

Economics 81: No additional assignment.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics, 1938-39”.

________________________

Twelve Case Studies

Economics 81
1.

A labor manager of a large plant recently expressed the opinion that he would rather have a national union among his employees than so-called “independent” association.

Recently the C.I.O. attempted to organize the plant by typical organizing methods. It had loud speakers outside the plant at the noon hour and it passed out literature containing strong and none-too-accurate attacks on the company and its management. The personnel manager of the plant had made it his business to become acquainted with the international president of the union. He got the president on long distance and said: “If I didn’t know any better how to organize the plant than you do, I would go out of business. Let me know when you will be in town at the Statler Hotel. I will see that twenty-six of our men come down to see you. If you can’t organize them into a union, you are no good.”

Discuss from the point of view of management, the advantages and drawbacks of national and “independent” unions. What do you think of the personnel manager’s technique in handling the organization problem?

 

Economics 81
2.

During the summer of 1937 negotiations in the railroad industry were carried on first with the non-transportation employees and later with the transportation employees. Suppose there are several unions of varying strength in the same plant. Discuss from the point of view of (1) the unions, and (2) the employer the desirability of (1) negotiating with each union separately, or (2) negotiating with them all simultaneously. It is quite usual in the building trades, for example, for the contractors to negotiate changes in wages and hours with all or most of the crafts simultaneously. The six unions in the railroad shops have pursued the policy of negotiating as a unit. On the other hand, in the printing industry, the photo-engraving union has pursued the policy of negotiating independently of the other unions. Can you suggest an explanation for these differences?

 

Economics 81
3.

In the railroad industry it is customary to make trade agreements of indefinite duration—that is, the agreement remains in effect until one side or the other gives notice of desiring a change. The agreements require notice of not less than a certain number of days or weeks.

What advantages to each side do you see in this type of agreement? Do you think that agreements of indefinite duration, such as cancelation on given notice, would be advisable in the building trades, in the shoe industry, in the street railway industry, in department stores?

 

Economics 81
4.

A large airplane line has three shops. In one of them virtually all of the employees belong to the machinists’ union. In each of the other two, the men have organized an independent union. The management wishes to negotiate agreements with its employees. In your judgment, does it make any difference where the management begins?

 

Economics 81
5.

The manager of a company complains that the employees take their grievances to the business agent rather than settling them through the shop steward. This suggests that something is wrong somewhere. What would you look for?

 

Economics 81
6.

For years the manager of a leather plant has taken some pains to avoid the risk of a strike because a large amount of product might be spoiled by the workers going out. The plant manager was not sure whether the president of the company would back him in case a strike occurred or whether the president might hold him responsible for the large losses and, in consequence, remove him from his job. The union gradually discovered that by taking a strong stand it could bulldoze the manager on many matters. It has succeeded in preventing the management from introducing machines into the finishing department. It has also succeeded in preventing the management from revising its piece rates in certain departments. As a result, the piece rates are far above what they should be in view of changes that have been made in methods and working conditions.

Assume that you are the president of the company and that you have just discovered this situation. What possible lines of action might you pursue?

 

Economics 81
7.

Some unions attempt to restrict the employers’ freedom to make layoffs by enforcing equal-division-of-work; others by enforcing layoff in accordance with seniority (sometimes modified by recognition of ability), and some by a combination of equal-division-of-work and seniority. In the women’s garment industry there are two principal busy seasons in the course of the year. The peak demand in each season lasts from four to six weeks. Between the busy seasons, the volume of employment becomes very low. Goods are produced in the main by small plants; a considerable proportion of the plants go out of business each year—in fact, in the New York market during the twenties the annual business mortality rate was over 30 per cent.

Do you think that the union in this industry would be well advised to attempt to regulate layoffs by seniority rule? If not, what kind of rule would you suggest to the union?

 

Economics 81
8.

Among the questions which arise in administering seniority rules is whether seniority shall be on a plant basis, a department basis, an occupational basis, or, in the case of multiple plant companies, on a plant basis. Discuss from the standpoint of both labor and employer the advantages and disadvantages of the different bases. Some employers have said that any seniority rule which suits the union will suit them provided it permits the employer to take some account of ability. Subject to this qualification, some employers have offered to let the union write its own seniority rule. What do you think of this position?

Suppose that the general rule is that seniority in a company will be based upon length of service in a department. How would you handle the case of a man transferred from one department to another at (1) his own request; (2) at the company’s request. Would your answer depend upon whether the transfer is temporary or permanent?

 

Economics 81
9.

A small furniture manufacturer writes: “We are negotiating for the renewal of our contract with the union and are not making the progress which we should. Heretofore the union has always stipulated and insisted that foremen are not eligible and should not become members of the union. This year they have reversed their position and insist that all foremen become members.”

The company has a closed shop contract with the union. Competition in the industry is intense. Would you advise the employer to concede the demand? If not, what line of action would you suggest that he pursue?

 

Economics 81
10.

A union in a factory making a food product limits itself to 180 batches in eight hours. The men are working under the Bedaux system which means that for output above a given amount they receive a bonus. The production of 180 batches enables the men to earn a small bonus. Improved machinery introduced since the Bedaux standards were set makes it possible for the men to turn out considerably more than 180 batches.

What should the employer do about this situation?

 

Economics 81
11.

At the 1934 Convention of the Glass Bottle Blowers Association, the Committee on Feed and Flow Automatic Machines recommended that “No firm with whom we have contractual relations shall be given any special privileges either by our National President or by any member of the Executive Board.” This would have prevented the union officers from signing agreements which gave some employers lower wages than other employers were paying.

Vice President Campbell, speaking on this question, said:

“This is an important question and I ask the privilege of speaking. I came in contact with it many places in the trade last year, and statements made here seem to refer to it. Some delegates are in favor and others are opposed, so it is a debatable question—this separate agreement; but if we go back in our history, we always had a separate agreement. We used to meet the Owens Company from year to year in a separate conference, which was necessary at that time; and the manufacturers used it in our conferences. President Maloney yesterday told you that it was pointed out to us that the ‘Big Boys’ were not in the conference; ‘Bring them in,’ they said. Before we organized the Owen-Illinois the Independent Manufacturers pointed out to us that this particular company was not paying the same wages they and other plants were. In some instances that was true. A few years ago the wage scale in some of their plants was not equal to our minimum rate. There was not so much complaint, because their wage scale in the Flow and Feed Department was on a par with ours. But in recent years, after the organization of the Owens-Illinois plants, we were able to secure better wages and the time came when they were paying better wages than our independent manufacturers. Then we began to hear complaints, and naturally so. But I think the separate agreement will work to our advantage, especially now, more so than in years gone by.”*

*Minutes of Proceedings of Fifty-Second Convention, Glass Bottle Blowers Association, July 9-16, 1934, p. 241.

Discuss the issues raised by this question.

 

Economics 81
12.

“When the number of employees in a department is increased or decreased the employer agrees to give consideration to the relative merit and ability of all employees in such department, and where, in the opinion of the employer, merit and ability are equal, then the factor of length of service in such department shall be recognized. In the case of a transfer from one department to another, an employee shall not lose any of the recognition herein referred to.”

Employee X is employed in a factory for six years having worked four years in Department A, and was thereafter transferred to Department B where he worked for the ensuing two years. Because of slowness of business in Department B, it becomes necessary to reduce the personnel of that department and the person with the least seniority (merit and ability being equal) is laid off.

Under the seniority rule quoted, how many years seniority does Employee X have. Assuming that Employee X is laid off in Department B, would he be permitted (merit and ability being equal) to “bump” an employee in Department A with (1) five years’ seniority, or (2) three years’ seniority?

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics, 1938-39”.

________________________

Final Examinations

1938-39
HARVARD UNIVERSITY
ECONOMICS 81a
[Mid-Year Examination, January or February 1939]

(Answer five out of six, including Question IV)

I

In 1936, the index of real wages was approximately 250 for the United States, 100 for Great Britain, 40 for Roumania and Poland. What factors would you take into account in explaining these differences?

II

“The introduction of new machinery appears to reduce the number of jobs. Its true effect, however, is to widen the opportunities for employment and to raise real wages.” Do you agree? Explain.

III

Analyze the conditions which determine the ability of a labor organization to practice successfully the policy of controlling new machines. What do you mean by a policy of control?

IV

Through years of experience in the negotiation and administration of trade agreements, certain practices, procedures, and organization arrangements have been developed which have contributed substantially to the smoother operation of collective bargaining. Indicate some of the more important of these, explaining their significance, and, where their application is limited, explaining what these limitations are.

V

Union-management cooperation involves certain problems which, unless properly handled, lead to strained industrial relations. Point out some of the more important of these problems and indicate what an employer might do about them.

VI

What are the relations between collective bargaining and unemployment?

 

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. Box 4, Bound volume: Mid-Year Examinations—1939. Papers Printed for Mid-Year Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. January-February, 1939.

 

1938-39
HARVARD UNIVERSITY
ECONOMICS 81a
[Final Examination, June 1939]

I

Discuss the issues which arise in attempting to write a satisfactory seniority rule for a collective agreement.

II

“Collective bargaining is both a necessary and a dangerous institution.” Discuss.

or

“Industrial democracy is essential to make political democracy effective, but industrial democracy poorly operated can bring about the downfall of political democracy.” Discuss.

III

(a) Discuss the incidence of the old age pension contributions.

(b) State and comment briefly on the arguments for the large pension reserve.

IV

(a) Discuss the desirability of replacing the present schemes of unemployment insurance benefit with flat rate payments.

(b) What are the merits of merit rating?

V

Discuss some of the problems of policy created by the interrelation of unemployment compensation and relief.

 

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. Box 4, Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. June, 1939.

Image Sources:

Sumner H. Slichter (left) Harvard Class Album 1947-48.

Spencer D. Pollard (middle) from the Harvard Class Album 1932.

Lloyd G. Reynolds (right). Photo from the Johns Hopkins Sheridan Library Photography Collection (April, 1940).