INTERNATIONAL LABOUR OFFICE WAGES AND PAYROLL STATISTICS Report prepared for the Seventh International of Labour Statisticians (Geneva, September 1949) GENEVA 1949 Conference STUDIES AND REPORTS New Series, No. 16 P U B L I S H E D B Y THE INTERNATIONAL LABOUR O F F I C E Geneva, Switzerland Published in the United Eangdom for the INTERNATIONAL by Staples Press Limited, London LABOUR OFFICE PRINTED BY " IMPRIMERIES RSUNIES S.A.", LAUSANNE (SWITZERLAND) CONTENTS Page INTRODUCTION CHAPTER I : 1 Work of the International Labour Office in the Field of Statistics of Wages 3 CHAPTEB I I : Statistics of Establishments Sample Coverage Procedure Computation Publication 11 11 22 31 37 42 CHAPTEB I I I : Censuses 46 CHAPTEB IV : Social Security Statistics 53 CHAPTER V : Estimates of Total Wages and Salaries 64 CHAPTEB VI : Social Charges 74 CHAPTEB VII : Convention (No. 63) concerning Statistics of Wages and Hours of Work, 1938 85 CHAPTEB V I I I : Proposed Resolutions 116 Appendices I. Texts of Convention No. 63, of Recommendation of the 5th International Conference of Labour Statisticians, and of Resolutions Adopted by tlie 24th Session of the International Labour Conference . . . 126 H . Summary of Statistics of Wages and Hours of Work Published by Countries which have Ratified Convention No. 63 137 III. Wage Statistics in Inland Transport 177 INTRODUCTION The Sixth International Conference of Labour Statisticians (Montreal) adopted the following resolution on 12 August 1947 * : Resolution concerning Statistics of Workers' Earnings The Sixth International Conference of Labour Statisticians, Recognising that the methods and practices which it has recommended in its resolution concerning statistics of employment, unemployment and the labour force will, when applied, facilitate the compilation of accurate statistics of payrolls, but being strongly of the opinion that fuller and more comprehensive consideration should be given at the earliest possible moment to the formulation of international standards for statistics of workers' earnings ; Requests the Governing Body of the International Labour Office to place on the agenda of an early International Conference of Labour Statisticians the subject of statistics of workers' earnings with special reference to payrolls and aggregate wages and salaries. The Governing Body of the International Labour Office, accordingly, decided at its 104th Session (Geneva, 15-20 March 1948) to place the following item on the agenda of the Seventh International Conference of Labour Statisticians : 2. Statistics of Payrolls and Earnings. Methods of obtaining statistics of earnings as well as of total wages and salaries from payroll data. This report on Wages and Payroll Statistics is divided into eight chapters. Chapter I describes the work accomplished in the past by the International Labour Office in the field of statistics of wages. Chapter I I deals with statistics of establishments and is divided into five sections as follows : Sample ; Coverage ; Procedure ; Computation ; and Publication. Chapter I I I discusses some of the problems raised b y wage statistics derived from censuses of manufactures, of production, etc. Chapter IV describes wage statistics derived from social insurance returns. Chapter V is entitled " Estimates of Total Wages and Salaries ". Chapter VI discusses methods for obtaining data on social charges. Chapter 1 INTERNATIONAL Labour Statisticians 1948), p . 66. LABOUB OFFICE : The Sixth International Conference of (Studies and Reports, New Series, No. 7, P a r t 4), (Geneva 2 WAGES AND PAYROLL STATISTICS VII appraises the results obtained by Convention No. 63 concerning statistics of wages and hours of work, 1938. Chapter VIII contains proposed resolutions. Finally, the text of Convention No. 63 is reproduced in Appendix I, the main statistics of wages and hours of work published by countries having ratified Convention No. 63 are contained in Appendix II, and some of the resolutions adopted by the Inland Transport Committee at its Second Session are reproduced in Appendix III. Statistics of wages in agriculture raise an entirely separate set of problems, and it is for that reason that agricultural wage statistics have been disregarded in this report ; the same apphes to statistics of rates of pay. Both subjects are briefly discussed, however, in connection with the work of the Office in the field of wage statistics (Chapter I) and in connection with Convention No. 63 (Chapter VII). CHAPTER I WORK OF THE INTERNATIONAL LABOUR OFFICE IN THE FIELD OF STATISTICS OF WAGES * MONEY WAGES The subject of wages was one of the topics on the agenda of the First International Conference of Labour Statisticians in October 1923, for which the Office submitted a report entitled Methods of Statistics of Wages and Hours of Labour.2 This Conference adopted resolutions covering the types of wages or earnings statistics to be collected, as well as index numbers of wages, which are discussed in the next section of this chapter. The two Conferences of Statisticians convened by the Social Science Research Council3 in 1929 and 1930 considered the question of wage data in conjunction with the index numbers of wages and the difficult problem of international comparisons, a subject which is discussed further in a later section of this chapter. Following these conferences, the Fourth International Conference of Labour Statisticians, in 1931, in a series of resolutions addressed to the Office and reviewing the problems of international comparisons of real wages, included as part of this broader topic details as to the wages data to be collected. Of special importance was its recommendation that the question of the supply of data on wages and the cost of living required for international comparisons of real wages should be considered with reference to the framing of a Convention that -would bind Governments ratifying it to collect and supply information at regular intervals. 1 See INTERNATIONAL LABOUR O F F I C E : The International Standardisation of Labour Statistics (Studies and Reports, Series N, No. 25) (Montreal, 1943). 2 Studies and Reports, Series N, No. 2 (Geneva, 1923). F o r t h e discussions at this Conference, see INTERNATIONAL LABOUR OFFICE : International Conference of Labour Statisticians (Studies a n d Reports, Series N , No. 4) (Geneva, 1924), pp. 30-47. 3 See International Wags Comparisons. (Documents arising out of Conferences, held a t the International Labour Office in Jan. 1929 and May 1930, convened b y the Social Science Research Couaeil of New York.) (Manchester University Press, 1932.) An account of t h s First Conference is also contained in " An International Conference on Wage Statistics ", International Labour Review, Vol. X I X , No. 4, Apr. 1929, p . 522. 4 WAGES AND PAYROLL STATISTICS Following up this suggestion, the I.L.O. Committee of Statistical Experts, itself organised in accordance with a recommendation of this Fourth Conference, considered the plan for a Convention at its second session in December 1935 ; the Fifth International Conference of Labour Statisticians, in September-October 1937, formulated a proposed Convention concerning statistics of wages and hours of work for the consideration of the International Labour Conference ; and the 24th Session of the International Labour Conference, meeting in June 1938, adopted the Convention. which is given in full in Appendix I. The Convention sets forth a minimum programme of wages and hours statistics to be compiled by each ratifying State, the results of which were to be forwarded to the International Labour Office.1 * Before the First Conference of 1923, the Office had begun the study of wages and wage changes in different countries. The International Labour Review for January 1923 contained the first of a series of such studies2, while in 1922 a first report was published under the title of Wage Changes in Various Countries, 1914-1921? In these special reports, emphasis was laid upon the difference between wage rates and earnings, and on real earnings as distinct from money earnings. Further, in these early articles and reports, wages and hours of labour were treated country by country. This arrangement was continued in articles published in the International Labour Review between May 1928 and May 1929. The number of countries supplying information gradually increased, and in 1929 an international table was issued covering twelve countries and showing changes in the general level of 1 For a discussion of this Convention, see J . W. N I X O N : " An International Convention on Statistics of Wages a n d Hours of Work ", in Journal of the Royal Statistical Society, Vol. CI, P a r t IV, 1938, p . 730. See also " The Twenty-Fourth Session of the International Labour Conference ", in International Labour Review, Vol. X X X V I I I , No. 3, Sept. 1938, p . 350 ; and International Labour Conference, Twenty-Fourth Session, Geneva, 1938, Record of Proceedings, p p . 34, 292, 646. B y 30 J u n e 1949 the Convention was in force for Australia, Canada, Denmark, Egypt, Finland, Ireland, Mexico, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the Union of South Africa and the United Kingdom. 2 International Labour Review, Vol. V I I , No. 1, J a n . 1923, p . 80. 3 I.L.O. : Studies and Reports, Series D, No. 2 (Geneva, 1922) ; No. 10, Wage Changes in Various Countries, 1914-1922 (Geneva, 1923) ; No. 16, Wage Changes in Various Countries, 19H-1925 (Geneva, 1926). WORK OF THE I.L.O. ON STATISTICS OP WAGES 5 wages within each country.1 In 1931 international tables 2 were issued showing the movements of wages in the principal industries and occupations in different countries. Data on wages in a number of specific occupations in the principal cities in October of each year have been obtained since 1924 by means of special enquiries addressed to the statistical offices of the different countries, and have been published in the International Labour Review. 3 Since the publication of the Year Book of Labour Statistics (and its predecessor, Vol. II : Labour Statistics of the I.L.O. Year-Book, for 1934-35), these tables have been incorporated in it. Special monographs relating to specific industries were published for the textile industry and agriculture.4 In addition, special enquiries have been made into wages and hours of labour in the coalmining industry, by means of questionnaires, in 1925, 1927, 1929, 1931, 1933, 1935 and 1936. The questionnaires, drawn up with the aid of a special committee, were sent to the various Governments, together with details of the terms used. By this means it was sought to obtain internationally comparable data. 5 Special reports on the world textile industry and on the world coal mining industry included data on wages and hours of work in different countries in these industries.6 The Maritime Statistical Handbook"1, published in 1936, included details of wages and wage rates for the merchant marine personnel in all the maritime countries of the world. The Office has also published from time to time summaries of the results of general wage censuses. 1 International Labour Review, Vol. X X , No. 1, July 1929, p . 113 ; Vol. X X I , No. 1, J a n . 1930, p . 117. 2 International Labour Review, Vol. XXIV, Nos. 2-3, Aug.-Sept. 1931, p. 294 ; Vol. XXVC, Nos. 2-5, Aug.-Nov. 1932, pp. 255, 431, 562 and 716. 3 U p to 1930 the d a t a were obtained a t more frequent intervals. 4 " Wages and Hours of Work in the Textile Industry (Cotton a n d Wool) ", in International Labour Review, Vol. X X X , No. 3, Sept. 1934, p . 387 ; " Statistics of Wages of Agricultural Workers in Various Countries, 1927-1934 ", ibid., Vol. X X X , Nos. 5-6, Nov.-Dec. 1934, pp. 692 and 844. 6 The results of the first enquiry were published by the I.L.O. in a volume called Wages and Hours of Work in the Coal-Mining Industry, Studies and Reports, Series D, No. 18 (Geneva, 1928), those for 1927, 1929, and 1931 in the International Labour Review, Vol. X X , No. 4, Oct. 1929, p . 539 ; and No. 6, Dec. 1929, p . 840, errata, p . 903, and Vol. X X I , No. 1, J a n . 1930, p . 89 ; Vol. X X I I I , No. 5, May 1931, p . 644, errata, p . 937 ; and Vol. X X V I I I , No. 3, Sept. 1933, p . 371-394 ; and those for 1933, 1935 and 1936 were published in I.L.O. : The World GoalMining Industry, Studies and Reports, Series B , No. 31, 2 vols. (Geneva, 1938). See also " The European Lignite Industry ", in International Labour Review, Vol. X X I I , No. 6, Dec. 1930, p . 752 ; Vol. X X I I I , No. 1, J a n . 1931, p . 25. 6 I.L.O. : The World Textile Industry : Economic and Social Problems, Studies a n d Reports, 2 vols., Series B, No. 27 (Geneva, 1937) ; The World Coal-Mining Industry, 2 vols., Series B, No. 31 (Geneva, 1938). 7 I.L.O. : Studies and Reports, Series N, No. 21 (Geneva, 1936). 6 WAGES AND PAYROLL STATISTICS I N D E X NUMBERS OF W A G E S The resolutions of the First International Conference of Statisticians of October 1923 included a recommendation to the effect t h a t " index numbers should be computed to show the general course of changes in nominal wage rates and in actual earnings ". 1 The two Conferences of statisticians called by the Social Science Research Council adopted a series of resolutions dealing with index numbers of wages. The first Conference (1929) divided the subject into three main topics and considered index numbers of wages as measuring fluctuations (1) in one of the elements determining the standard of living, (2) in the remuneration per hour of work, and (3) in the labour cost per unit of production. In detail, its recommendations were designed to throw light upon six different aspects of wage index numbers : (1) changes in the standard of living of the working classes as a whole ; (2) changes in the fluctuations in the standard of hving as between different industries and occupations in the same country ; (3) as an aid to forecasting economic conditions ; (4) to measure earnings per hour in respect of work of comparable character and efficiency ; (5) for measuring labour cost per unit of production ; and (6) to measure variations in the proportion of the national income formed by wages. The second Conference called by the Social Science Research Council (1930) emphasised certain specific points important in the collection and organisation of the data, stressing in particular the differences between rates and earnings, the importance of the industries covered, the problem of including or excluding women's rates in a general index, and the influence on the index of changes in the relative proportions of the industries, etc., which are included in the index number. The Convention concerning statistics of wages and hours of work, 1938, includes articles prescribing index numbers of the general movement of earnings per hour, and where possible per day, week or other customary period, and of the general movement of rates of wages per hour or per week to be compiled by the countries ratifying the Convention (Articles 12 and 21). With special reference to index numbers of real wages, t h a t is, indices combining indices of nominal wages with those of the cost 1 For a discussion of the resolution on wage index numbers and a synoptic analysis of the methods of compilation then in use in different countries, see J . W. N I X O N : " Index Numbers of Wages : a Survey ", in Bevile de l'Institut international de statistique, Vol. I, No. 1, J a n . 1933, p . 39. WORK OF THE I . L . O . ON STATISTICS 0¥ WAGES 7 of living of wage earners' families, the First International Conference of Labour Statisticians, in October 1923, included a general recommendation to the effect that the changes in actual earnings should be related to changes in the cost of living. The resolutions of the Fourth Conference of Labour Statisticians, in 1931, though directed specifically to the problems of international comparisons of real wages, contain many recommendations applicable to the compilation of national indices of real wages. Index numbers of nominal and real wages are published at quarterly intervals in the International Labour Review and in the Year Book of Labour Statistics. At the date of their first publication only twelve countries were included ; in the Year Book for 1947-48 they extend over twenty-eight countries, in many cases with separate series for different industries, for both sexes, for males and females, and showing wage rates or earnings per hour, or earnings per day, week or month. TOTAL WAGES AND SALARIES The first Conference of Statisticians called by the Social Science Research Council in 1929 adopted resolutions dealing with the measurement of changes in the proportion of the national income formed by wages, or by the remuneration of labour as a whole. In a resolution appended to Convention No. 63 (see Appendix I), the 24th Session of the International Labour Conference (1938) referred to the desirability of compiling, if possible at annual intervals, statistics showing the aggregate amount of wages paid per annum in each of the principal industries in mining, manufacturing and building and construction. A special study of the statistics of total wages and salaries was published in the International Labour Review for September 1936.1 Annual figures on the subject have been given in the Year Book of Labour Statistics since 1937. TOTAL LABOUR INCOME The Year Book of Labour Statistics, 1947-48, for the first time, contains a table showing figures on total labour income from 1937 to 1947 in nineteen countries and its percentage of the total 1 " Statistics of Total Wages a n d Salaries ", International Vol. X X X I V , N o . 3, Sept. 1936, p . 391. Labour Review, 8 WAGES AND PAYROLL STATISTICS national income. For the first time, also, a chapter on social security statistics contains information on benefits paid out by various social security schemes in each country in 1946 and 1947. INTERNATIONAL COMPARISONS OF REAL WAGES In the First and Second International Conferences of Labour Statisticians (1923, 1925) the problem of international comparisons was raised in connection with the work of the Office in carrying further the international comparisons of real wages in selected cities begun by the British Ministry of Labour. In particular, the Second Conference adopted a resolution embodying certain suggestions for the work of the Office.1 The whole problem was considered further by the first and second Conferences of Statisticians (1929, 1930) called by the Social Science Research Council. The Fourth International Conference of Labour Statisticians (1931) reviewed the whole subject and adopted a series of resolutions addressed to the Office on various specific details of methods to be followed in comparing, internationally, money wages and real wages. This outline of the development of the resolutions, however, needs to be supplemented by a review of the development of the statistics. The enquiry of the British Ministry of Labour, which was taken as the starting point, consisted in ascertaining the wages of adult male workers in a series of about thirty occupations in a large number of towns, together with the retail prices of a number of articles of common consumption, in order to permit calculations of the purchasing power of wages. In 1924 the Office undertook its first enquiry of this type ; the results, published in October 19242, attempted to express the relative purchasing power of average wages or earnings for a standard (48-hour) week in the different cities with reference to London as a base. The elements in this method included the wage data, on the one hand, and the cost-of-living data — a list of important food items, with an adjustment for rents — on the other, in conjunction 1 For t h e discussions a t t h e Second Conference, see I.L.O. : The Second International Conference of Labour Statisticians, Studies and Reports, Series N, No. 8 (Geneva, 1925), pp. 21 a n d 37. 2 " Comparison of the Levels of Real Wages in Certain Capital Cities ", in International Labour Review, Vol. X, No. 4, Oct. 1924, p . 630. WORK OF THE I.L.O. ON STATISTICS OF WAGES 9 with a method of expressing the final results in terms of an index, with London as a base. It was soon found, however, that the wage data were not homogeneous or strictly comparable in all respects ; some of the data were for earnings, some were for wage rates ; in some cases they referred to minimum, in others to predominant, rates ; and moreover, the money wages themselves did not always fully express the total remuneration of the workers — the amount of which is affected by payments for holidays, family allowances, allowances in kind, and the value of the social insurance contributions. In carrying out the successive studies, a series of improvements was introduced in the techniques and methods — as discussed in the reports of these investigations. Tables of these international indices of wage comparisons were published during the period from 1924 to 19301 in conjunction with data on wages, retail prices of important food items, and percentage spent for rent as shown in family budget studies. These indices were presented as merely rough indications of relative wages, and their defects were of course apparent. The first plan adopted to secure materials usable for purposes of comparison involved obtaining wage data for a list of selected occupations in specific industries at a given time in the chief cities of the principal countries. This was commented upon in the resolutions of the Second Conference (1925) ; the first Conference of Statisticians called by the Social Science Research Council proposed certain additions to the list. The Fourth Conference (1931) also urged the extension of these materials. For the rest, the Fourth Conference and the Convention concerning statistics of wages and hours of work urged the development of the basic statistics of time rates of pay and actual earnings as fundamental to international comparisons of real wages. ELEMENTS OF REMUNERATION OTHER THAN WAGES This question was touched upon in one of the resolutions of the Fourth Conference relating to wage comparisons between countries operating under different systems of social insurance, 1 See in particular, in addition to the article cited in the preceding footnote : " Wage Rates a n d Retail Prices in Various Cities ", in International Labour Review, Vol. X I , No. 1, J a n . 1925, p . 103 ; Vol. X I , No. 4, Apr. 1925, p . 561 ; Vol. X I I , No. 1, July 1925, p . 96 ; and " Comparison of Real Wages in Various Countries ", ibid., Vol. X X I , No. 4, Apr. 1930, p . 557. 10 WAGES AND PAYROLL STATISTICS family allowances, holidays with pay and other points, and was referred by it to the Committee of Statistical Experts. The Committee adopted a resolution on the subject at its first meeting (Geneva, 12-15 December 1933). Statistics dealing with the subject are meagre. The principal materials available in the Office publications are a special report dealing with wages, hours of work and other factors in the remuneration of workers in certain towns in October 19321, and the reports dealing with wages of workers in coal mines in the series of studies already referred to. 2 1 " Wages, Hours of Work and Other Factors i n t h e Remuneration of Workers in Certain Towns in October 1932 I " (Money Wages, Hours of Work), in International Labour Review, Vol. X X V I I , Ko. 6, J u n e 1933, p . 815 ; " I I " (Family Allowances, Holidays with Pay, Employers' a n d Workers' Contributions to Compulsory Social Insurance Schemes), ibid., Vol. X X V I I I , No. 1, July 1933, p . 104 ; " I I I " (The Interpretation a n d Combination of the Data, Conversion of the D a t a for the Purpose of Comparison between different Towns a n d Countries), ibid., Vol. X X V I I I , No. 2, Aug. 1933, p . 265. See also " Holidays with P a y for Private Employees ", ibid., Vol. X X I V , No. 6, Dec. 1931, p . 713, a n d references therein cited. For special problems of non-monetary remuneration of agricultural workers, see " Statistics of Wages of Agricultural Workers in Various Countries, 19271934 ", ibid., Vol. X X X , Nos. 5-6, Nov.-Dec. 1934, p p . 692 a n d 844. Also, for example, " Allowances in Kind given to F a r m Labourers in t h e United States ", ibid., Vol. X X , No. 4, Oct. 1929, p . 562. 2 See " Annual Holidays with P a y for Miners Employed in Coal Mines ", in International Labour Review, Vol. X X I , No. 2, Feb. 1930, p . 219. CHAPTER II STATISTICS OF ESTABLISHMENTS Statistics of both total payrolls and average earnings will be discussed in this and the two following chapters, estimates of total wages and salaries being reviewed in Chapter V. A word on terminology may be in order here. The expression " total payrolls " is used throughout in this report to describe the aggregate amount of wages or of wages and salaries paid during a given period by all reporting establishments ; " estimates of total wages and salaries " include payrolls of non-reporting establishments and payrolls of establishments in branches of economic activity not covered by the basic series ; " labour income ", besides total wages and salaries, covers such transfer payments as unemployment compensation, sickness insurance benefits, etc. Sample I n this section the criteria for inclusion of establishments in the sample will be illustrated. The economic scope of the series will be brieñy surveyed and the methods of obtaining the list of establishments and the names of newly created establishments will be described. Finally, the degree of representativeness of the samples will be analysed. CRITERIA FOR INCLUSION The criteria used for inclusion of establishments in the sample are almost as numerous as the series themselves. In Australia, all persons, firms and authorities (except Commonwealth departments, public hospitals, charitable and benevolent institutions) paying more than A.£1,040 per annum in wages, salaries, commissions, directors' fees, etc., must lodge payroll tax returns. In Canada, the requirement for inclusion in the monthly surveys is the employment of a staff of fifteen persons or more in the industries covered in the enquiry ; this Hmitation is dictated largely by reasons of economy of time and money. In Chile, the sample includes all establishments having a capital of more than 100,000 pesos or an annual value of produc- 12 WAGES AND PAYROLL STATISTICS tion of over 250,000 pesos ; this means that, with few exceptions, the sample includes establishments where more than five workers are employed. In Colombia, the establishments included in the annual series are those with a value of production per year of 6,000 pesos or more, or employing at least five wage earners ; the monthly sample is based on the " most representative " establishments. Earning statistics in Finland and Norway are based on returns of establishments belonging to employers' associations. In France, all establishments in principle are to report the total taxable earnings of every one of their workers once a year to the Ministry of Finance. In the British Zone of Germany, selection has been arranged to ensure an average representation of 10 per cent. The classification of the individual establishments as regards size, geographical location, industrial distribution, is designed to cover in every labour office area the industries typical of the area. In India, the series is based on the Payment of Wages Acts ; for purposes of these Acts a " factory " is defined as any premises, including the precincts thereof, where twenty or more workers are working and in any part of which a manufacturing process is carried on with the aid of power ; " mines " means any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on ; in addition, railways and plantations are covered ; no limitation in terms of number of workers employed, etc., is observed in these last two cases. The definitions used are basically the same in Pakistan. In Italy, all establishments are included if belonging to certain industrial branches, and all establishments employing at least ten persons are included if belonging to certain other industrial branches. In Japan, the survey covers all plants with one hundred or more workers, and 10 per cent, of those employing between thirty and ninety-nine workers. In most of the industries surveyed in the Netherlands, the establishments employing less than ten persons are excluded ; in other branches where the number of small establishments is important (building, bakeries, motor repair shops, laundries, bookbinding, etc.) some establishments employing less than ten persons are also included in the sample. For Portugal, all establishments where two or more persons are employed are included. In the United Kingdom the questionnaire, in 1938, was sent to all firms employing more than ten workers and a small proportion selected at random of smaller firms ; the enquiry was on a voluntary basis and replies were received from between 60 and 70 per cent. of the firms ; at subsequent dates the enquiries have been addressed to those firms which gave information in 1938 and continue to do so. Finally, in the United States, the criteria for selection of the establishments are those provided to the individual States by the Bureau of Labor Statistics under co-operative agreements. These criteria specify inclusion of every establishment of one hundred or more employees and a minimum of 30 per cent, coverage in terms of employment in each industry to be measured. In actual practice it is frequently necessary to go much lower than one hundred employees to secure better representation in particular industries. I n most countries the criteria of selection of establishments are stated in terms of the number of workers employed, although the figure below which the establishment is not to be included varies very much from one country to another and sometimes also from one industrial branch to another ; for a few countries STATISTICS OF ESTABLISHMENTS 13 the criterion is stated in terms of a percentage ratio of representation (10 per cent, of the workers in each branch in the case of the British Zone of Germany) ; in a third group of countries the criteria are stated both in terms of minimum numbers of workers employed and in terms of minimum percentage representation (for instance, in the United States) ; only a few countries state the criteria of inclusion in terms of monetary values ; in a few others the criterion is membership of an employers' association. The system whereby both the minimum number of workers and the minimum percentage of representation are stated would seem to yield the most clear cut and best results, but it would appear advisable to leave the exact figures both of the number of workers and of the minimum percentage to the judgment of the individual countries, since both will depend very much on the average size of the establishments in the national economy. I t is, of course, obvious t h a t statistics based on the larger establishments only (as is likely to be the case when the statistics are obtained under an arrangement with employers' associations, for instance) will show different trends and different absolute amounts of payrolls and earnings from statistics based on a representative sample of establishments. I t would therefore seem advisable to recommend, as is actually the practice in Canada, in the British Zone of Germany, and in other countries, t h a t the criterion used for inclusion in the sample of establishments should be a rather low number of employees, for instance, fifteen, or that, alternatively, if the criterion used is a higher number of employees, for instance, one hundred, a minimum percentage of inclusion in terms of employment (in the case of the United States, 30 per cent.) should be specified. Finally, if the criterion used for inclusion is a rather large number of employees only, it would seem essential to compare the results of such series with periodic enquiries having a wider coverage used as benchmark data (industrial censuses, censuses of production, etc.). INDUSTRIAL SCOPE For some of the countries surveyed, the industrial coverage of the series on total payrolls and average earnings is as follows (an asterisk indicates t h a t the group is represented by a few branches only) : Australia. Complete, except for Commonwealth Departments, public hospitals, and charitable and benevolent institutions. 2 14 WAGES AND PAYROLL STATISTICS Canada. Logging, mining, manufacturing, construction and maintenance, transportation, communications, trade, financial institutions, personal services* (hotels, restaurants, laundries and dry-cleaning establishments). Chile. Manufacturing,* public utilities.* Colombia. Monthly enquiry : Manufacturing.* Annual enquiry : Manufacturing,* public utilities.* Finland. Mining, manufacturing.* France. Complete, except for agriculture, civil servants and domestic service. Germany (British Zone). Manufacturing, building. India. Plantations, mining, manufacturing,* and railways. Ireland. Manufacturing.* Italy. Mining, manufacturing and public utilities. Japan. Manufacturing. Netherlands. Fishing, mining, manufacturing,* building, public utilities, transportation* (permanent dock workers). Norway. Mining, manufacturing, construction. Pakistan. Manufacturing.* Portugal. Fishing, mining, manufacturing. Sweden. Mining, manufacturing, building, commerce, transportation,* public services. Switzerland. Manufacturing, transportation, commerce, banking. United Kingdom. Mining,* manufacturing, building, public utilities, transportation. * United States. Mining, manufacturing, construction, public utilities, trade, finance, personal services* (hotels and laundries). Several countries have plans to extend the scope of their series in the near future. In Canada, for instance, it is planned to cover certain highly specialised branches for which data have not yet been collected ; in Finland, data will be collected for some of the branches not covered at present (food industries, leather, shoes and clothing industries, and printing and bookbinding industry) ; certain industries of importance. to the British Zone of Germany, like the food industries (only partly covered at present) and the tobacco and spirit manufacturing industries, are to be included. I n Ireland it is planned to extend the scope of the survey conducted twice a year to cover the whole range of industries covered by the yearly census ; it will therefore be necessary to include branches like sugar, brewing, distilleries, •bread and creameries in the manufacturing group and cover building, government and local authorities works, transportation and public utilities. I t is of course difficult to arrive at an internationally standardised coverage of industries in this field. Each country includes in its series the major groups and industrial branches of importance for its economy. The first step is to recommend that data, for manufacturing industry at least, should be based on a represen- STATISTICS OP ESTABLISHMENTS 15 tative list of industrial branches and t h a t they should be computed and published in such a way that figures can be adjusted to fit the major groups of the international standard classification of industries. The second step would be to extend the coverage to additional major branches of economic activity, also defined in accordance with the international standard classification, in such a way t h a t average earnings for these major branches would be on a comparable basis. REPORTING U N I T The next question to be discussed is whether payrolls and average earnings statistics based on a sample of establishments use firms, establishments or departments of establishments as the basic unit for their returns. In general, the monthly statistics in Canada are collected on an establishment basis. The Canadian definition of an estabUshment is similar to that of the United Nations as set forth i n " International Standard Industrial Classification of all Economic Activities ", i.e. : " The concept usually referred to as the establishment is that of the individual factory, workshop, mine, farm, store, or commercial office. This may be, and in the majority of cases will be, identical with the ' enterprise ', but it will be much more easily assignable to one particular branch of economic activity. Such a unit will normally be able to provide all the principal statistics required in censuses of manufacture, distribution, etc., namely, numbers employed (including administrative staff), wages and salaries, cost of materials, fuel and power, value of production or sales, value of stocks of materials or value of stocks of finished goods. A unit of this type may include activities which are ancillary to the main business, such as a small power plant serving a factory or mine, or a garage housing and maintaining the delivery lorries of a retail store, but these ancillary activities will be regarded as part of the main unit ". In the case of the United States, data are collected on an establishment rather than a firm or company basis. An establishment is defined as the site or location at which an employer carries on his business activities. An establishment may be a store, shop, plant, factory, mine, construction site, office, school, church, navy yard, mill, or private home. Such an establishment has also to be distinguished from a department or other operating division within a single operating unit. If a single physical location comprises two or more places or operating units engaged in, distinct or separate activities, each one is treated as a separate establishment, for industrial classification procedure requires that such units shall be assigned to different industries. When a company operates several establishments in a community, all of which are engaged in the same manufacturing activity or a similar line of trade or business, a combined report is acceptable. The practice of basing statistics of payrolls and average earnings on returns from individual establishments, rather than from 16 WAGES AND PAYROLL STATISTICS firms or companies, is very generally accepted. When, within an establishment, departments have their own separate bookkeeping, the practice is usually to request a return for each department. I n some countries where the returns are obtained by means of an agreement with an employers' association, such a practice may be difficult to apply. I n view of the importance of assigning each establishment to its proper industry classification, however, it is to be recommended t h a t wherever possible the establishment be used as the basis for the returns, and t h a t in any case the same practice as t h a t applied to employment statistics be used in the case of payroll and average earnings statistics. Another question is the problem of assigning a given establishment to its proper industrial branch in the case of establishments producing a multiplicity of goods. In Canada and Switzerland, establishments producing different lines are asked to furnish monthly statistics for the several lines. If the establishments are unable to make the required breakdown of thendata, the total figures are classified in the branch of industry which employs most of the workers. In Finland, establishments are not classified according to their product, but on the basis of their membership or non-membership of a certain employers' association. Each industrial branch has its own association. The departments of an establishment, or establishments of a firm producing different lines, can belong to different employers' associations and the fact is then taken into account in the statistics, but otherwise the several lines of production of certain establishments are disregarded for classification purposes. In the case of the Federation of Employers' Associations in Norway, the classification is based on the agreements on wages and other conditions of work, so that when an establishment has several lines of production and a special agreement for each line, the establishment is divided into several parts for purposes of classification. In the United States, industrial classification of the establishments is based upon the major product or line of activity during the past calendar year. This is determined on the basis of gross value of the product rather than on the number of workers. I n the case of establishments having several lines of production, an effort is usually made to get returns on each line; if this is not possible, the most important line will be used as a basis for classification. But whereas the United States measures the importance of each line mainly on the basis of the gross value of the product during the past year, the majority of countries measure t h a t importance in terms of numbers employed in each line. Although these different methods of measuring the importance of each line of production will lead to some discrepancies in the STATISTICS OP ESTABLISHMENTS 17 results obtained for average earnings by industrial branch, the discrepancies will probably not be such as to warrant special recommendations on t h a t point. L I S T OF ESTABLISHMENTS One important question to be considered is how in the various countries the list of establishments from which returns are required are compiled and kept up to date. In Canada, the list of establishments used in the monthly survey has been built up over many years, the names of firms being obtained from various sources, including the annual census of industry, directories, hst of public utilities (railways, power companies, etc.), chambers of commerce, trade publications, the press, etc. The suitability of the establishment for inclusion in the survey is determined from a special nature-of-business questionnaire which it is asked to complete before its name is added to the mailing list. In Chile, the hst of establishments is that of the Department of Manufacturing Industries, completed by municipal rolls and the Hst of the Society for Industrial Development. In the countries where the returns are obtained by agreement with employers' associations (Finland, Norway, etc.), the list of membership of each association is used as the mailing hst for the schedules. In the British Zone of Germany, the Hst of estabHshments was obtained from the labour offices' indexes of firms ; no sampling methods or special questionnaires were necessary ; no difficulties arose in this connection, as labour offices are acquainted with the firms in their areas. The labour offices notify the chosen firm to the Eegional Statistical Office, which controls the degree of representation on the basis of employment figures and makes improvements where necessary by instructing the particular office to cover one or more additional estabHshments in the branch in question. In the Netherlands, the Hst of estabHshments was originaHy drawn up on the basis of the last available census returns (1930) ; in the civil engineering industry, the building trades, and some other branches, Hsts of membership of employers' associations were used. In Sweden, the questionnaires sent out are based on a Hst of addresses kept by the Social Board. This Hst was originaHy compiled from a Board of Trade register of undertakings. From time to time the Hst is supplemented by the addition of addresses obtained from the Provincial Labour Committees, and in so doing estabHshments employing less than ten persons are not usually included. The Hst of estabHshments was also originaHy based on the Hsts of membership of various employers' associations and on the Hsts they keep of estabHshments not belonging to them ; other sources canvassed have been the Hsts of the labour inspectors, commercial directories, etc. In the United States, the selection of the estabHshments used to be made primarily on the basis of trade directories and telephone directories, and certain other incidental sources. However, since the beginning, in 1945, of a co-operative programme of employment, hours and earnings statistics, conducted largely through State unemployment compensation agencies, the principal source for sample selection has been the 18 WAGES AND PAYROLL STATISTICS lists of establishments paying taxes on payrolls under the unemployment compensation laws. Statistical agencies in the various countries draw upon a variety of sources t o compile the basic lists of the establishments from which returns on payrolls will be requested. The main question to be raised in this connection is how such a list, once compiled, is kept up to date. In Canada, the monthly surveys' coverage of industry increases from year to year as additional information is obtained regarding business enterprises and as better co-operation is accorded by industrialists. The general increase in the number of co-operating establishments approximates five per cent, per year ; this includes both newly created and newly reporting establishments. The sample increases as industry expands, as additional sources of information are discovered, and as constantly improving co-operation is obtained from firms. The names of newly formed establishments are obtained from press reports, lists furnished by public utilities, trade associations, etc. In the Netherlands, new firms considered important for the branch have been added, their names being drawn from lists published by the chambers of commerce, from the registers of membership of " industrial groups " (compulsory industrial organisations), production censuses, reports from regional employment exchanges, etc. In the case of Norway, the series has hitherto been limited to members of employers' associations, but plans have been set up to cover nonmembers also and, at the same time, to improve the methods of calculation. This plan, however, has not been put into effect as yet ; but an extensive census of wages for some important industries covering almost all firms, whether members or not of the Central Employers' Association, Government and municipal plants, as well as co-operative establishments, was carried through in 1948. The results of this census are expected to give a new basis for the construction of a more satisfactory wage series in Norway. As has already been indicated, the list in Sweden is supplemented by the addition of addresses obtained from the provincial labour committees ; no other arrangements are made for the inclusion of newly created establishments. In Switzerland, newly created firms are included in the survey from the moment they get their licence from the authorities. Until recently new establishments were not added to the list in the United Kingdom ; steps are now being taken to extend the enquiries in the case of industries in which the sample is below average. Continuous efforts are being made in the United States to strengthen the sample in those industries where it is noticeably weak. Establishments are being. added rapidly in those segments of transportation, finance, and service where the sample in the past has been virtually non-existent. Before the present arrangement with State unemployment compensation agencies came into operation, it was very difficult to secure a comprehensive list of names of newly formed establishments as the names of such firms did not generally appear in directories until the company had begun operations. During the last war the names of many new war material firms became available from lists of Government contractors, and these firms were contacted for monthly reports. 19 STATISTICS OF ESTABLISHMENTS Except in countries where the series is based on identical establishments (Chile, Guatemala, etc.), all countries make an effort to obtain the names and addresses of newly created establishments in order to keep the coverage of their series in each industrial branch up to date. This can happen systematically from well defined sources of information, as in Switzerland (licences obtained by persons intending to open a new business) or in a more haphazard way, from trade directories, commercial publications, etc. Whatever the method, the inclusion of newly created establishments is to be recommended in order to avoid a bias in the results and a progressive decrease of coverage in the series. REPRESENTATIVENESS AND SIZE The last consideration in this section is a review of the available information on the degree of representativeness of the sample of establishments in the various countries. This can be done from various points of view : industrial distribution, size distribution, sex distribution, age distribution, regional distribution, etc., but the present review will be limited, in the main, to the degree of representativeness expressed as a percentage of employment in the major industrial groups. In Australia, the coverage is between 65 and 100 per cent, of totals employed, in most groups. The coverage has been expanding continuously since mid-1947 owing to the rise in the level of money earnings compared with the fixed level of exemption ; since mid-1947 a further influence has appeared, namely, thorough checks by the Taxation Department to discover evasion. In August 1948, the 57,000 returns tabulated monthly covered 86 per cent, of males and 79 per cent, of females in private employment (excluding rural industry and females in private domestic service) ; Government employees are covered completely by direct collections. In Canada, for all manufacturing establishments, the number of employees per establishment in 1946 averaged 34 according to the records of the annual census of manufactures ; in the monthly surveys the average per establishment in the same year was 112. The following table shows the percentages of employees covered by the monthly surveys in the various industrial branches at 1 September 1948 : Industries Logging Mining Manufacturing Estimated percentages ' 62.1 92.9 88.6 1 The percentages in mining and manufacturing are based on the Annual Census of Industry, 1946 totals of employees as 100. I n the remaining industries, t h e percentages are based on t h e Decennial Census totals of employees a t work a t 1 J u n e 1941, as 100. 20 WAGES AND PAYROLL STATISTICS Industries Estimated percentages Construction Transport and communications Trade Wholesale Retail Finance Hotels, restaurants, laundries and drycleaning plants 84.0 89.8 56.1 59.3 54.4 76.2 50.7 For man-hours and hourly earnings of production workers in manufacturing, the corresponding percentage is approximately 81 per cent. The percentage for the whole of Canada at the same date is 82.2 per cent., ranging from 42.7 per cent, for Prince Edward Island to 87.3 per cent, for Ontario. In Finland the sample includes approximately 35 per cent, of the workers employed in mining and manufacturing industry. At the present time approximately 4,800 undertakings employing 368,329 workers in June 1948 are covered in the British Zone of Germany. Selection has been arranged so as to ensure an average representation of 10 per cent. Approximately 1,000 concerns are included in Ireland and in March 1948 the number of wage earners indicated was 75,000, i.e., approximately 80 per cent, of employment in manufacturing industry. In Italy, the series covers approximately 17,000 establishments employing some 1,700,000 workers. For some industrial branches the coverage is complete ; for the others, it is extremely difficult to state how representative the sample actually is, since the latest industrial census covers the years 1939-1940 and the war has brought profound changes since then. At present about 1,170,000 workers are covered in Japan out of a current total in manufacturing employment of approximately 5,780,000 workers. Of the covered workers, approximately 845,000 are males and 326,000 are females ; the figures for total manufacturing are currently about 4,120,000 males and 1,660,000 females. In the Netherlands, the average size of the establishment in the sample is larger than in the universe ; the sample is said to compare reasonably well with the universe in geographical location and in industrial distribution. Percentages of complete coverage of workers in each branch are not available ; some of the industries are covered almost completely (coal mines, brick-making, boot and shoe making, papermaking, several branches of the metal and textile industries, gas and electricity works, beet sugar mills, etc.) ; in none of the other branches covered does the percentage of workers included in the sample fall below 50 per cent. ; the average percentage for manufacturing as a whole is approximately 65 per cent. In Sweden, in January 1948, the returns comprised 611,108 wage earners ; of these 485,240 were included in manufacturing and mining and 61,695 were employed in building and construction (including railway and other construction works undertaken by the State, and municipal building and public works). As regards the representative character of these returns, it may be pointed out that in 1946 the total number of workers in the industrial undertakings covered by the industrial statistics of the Board of Trade (which do not include building and public works) was 664,109. The percentages covered in each size of 21 STATISTICS OF ESTABLISHMENTS establishment group in 1947 is given in the following table, the data being based on the Board of Trade industrial statistics for 1945 : Number of employees Establishments Wage earners Total 1-10 11-50 51-200 201-500 Over 500 13.4 20.0 58.8 63.6 83.7 85.0 98.6 97.9 82.8 87.6 34.0 77.5 With regard to the quarterly series on payrolls and total hours worked of wage earners, these statistics covered 553,709 wage earners, including 445,587 wage earners in mining and manufacturing, at the reporting date of May 1948. Over 50,000 establishments and nearly 6,000,000 wage earners are covered in the survey conducted in the United Kingdom. The industrial distribution of the sample firms varies to some extent, and some industries, e.g., building, are represented less fully than others. The sample in the United States has an establishment average size considerably higher than that of the universe ; it is fairly well distributed geographically ; it is disproportionately distributed by industry, as indicated in the table below, but in the average earnings data for all workers this is corrected by proper industry weighting. Industries Percentages Mining Manufacturing Construction Public utilities Trade : Wholesale Retail Service : Hotels Power laundries, cleaning and dyeing Total 49 58 25 69 15 17 24 19 52 The percentages covered b y the sample in the different countries and the variations in these percentages b y industrial branches are summarised in the list below : Australia British Honduras Canada France Finland Germany Ireland Japan Netherlands Sweden United States 65- 84-100 100 51-82-93 100 35 10 80 20 50- 65-100 70 15-52-69 22 WAGES AND PAYROLL STATISTICS The degree of representativeness of the sample by industrial branch, b y sex and by size of establishment has an influence on the absolute amounts and trends of payrolls and average earnings, the importance of which need not be underlined here. I t is to be strongly recommended t h a t in the cases where figures on earnings are biased by lack of representativeness of samples from the point of view of industrial distribution, the bias should be lessened b y proper weighting wherever possible. I t would appear also essential t h a t sample enquiries into payrolls and earnings should be supplemented wherever possible from other sources (social insurance statistics, etc.) and be adjusted as often as possible to benchmark data with a wider coverage. This procedure, highly to be recommended in the case of index numbers of total payrolls and earnings, becomes essential in all cases where payrolls and average earnings are published in absolute amounts. I n any case, the publication of breakdowns of the sample of establishments, comparing the sample with the universe from the point of view of industrial distribution, size, distribution b y sex, etc., is highly to be recommended, so t h a t a fair appraisal of the value of each of the series published in the various countries may be made. Coverage The first point to be discussed under the heading of coverage is, in what countries do the forms sent in periodically by establishments call for information on each individual worker and for what countries do they call only for total payrolls of various categories of workers. The second main question to be discussed in this connection is, how the various countries define the categories of workers for which payroll figures are asked; whether only wage earners are covered, or wage earners and salaried employees ; whether working foremen, sales personnel, etc., are included; and whether higher technical personnel, directors and working proprietors are also covered. The third point is, how the various countries define payroll figures ; what payments are included, what others are not ; whether cost-of-living bonuses, family allowances, payments for piece work, allowances for travel, night work, shift work, etc., are included. STATISTICS OF ESTABLISHMENTS 23 INFORMATION R E Q U I R E D B Y FORMS With regard to the first series of points, the following information is submitted : In Australia, the schedules to be turned in monthly under the Pay-roll Tax Assessment Act call for the number of employees (separately by sex) on the last day of the last pay period of the current month and for the total wages paid or payable in respect of pay periods ending during the month ; the returns relate generally to periods of four or five weeks. The schedule used in Canada asks for a statement of the amounts currently disbursed in wages by each establishment ; it does not ask for data by age, by degree of skill, by industrial status, nor by occupation. The time period covered is the last pay period in the month for all employees, grouped according to the duration of their regular pay periods ; provision is made for the separate entry of data for persons paid weekly, fortnightly, twice a month and monthly, but not for the entry of figures for the quarter or for the year. The data asked for is the same for all branches of industry included in the monthly survey. Loss in earnings due to the occurrence of an unpaid holiday in the last week of the month is accepted as a fact, the reduced figures of payrolls being tabulated. If the reported pay period exceeds a week and a holiday is celebrated in that part of the pay period which does not come within the normal period of observation, an adjustment is made by applying a reduction factor making allowance for the holiday. In Finland, the schedules used by the different employers' associations are different ; nevertheless, for official purposes data are called for separately for adult males and adult females (above eighteen years of age) ; the schedule calls each quarter for the number of wage earners, the total number of hours worked and for total payrolls ; in most cases payrolls cover a two-week period, but in some cases they cover the second month of each quarter or the whole quarter. In France, the schedule calls, separately for each individual worker, for data on his name, sex, occupation, earnings during the year, taxes deducted at the source, estimate of payments in kind, reimbursements of travelling or other professional expenses, length of time worked during the year, etc. In the British Zone of Germany, separate figures are asked for at each survey by sex and degree of skill (occupational groups), and at every other survey, namely, in spring and autumn, supplementary figures are asked by age (adults and juveniles) for individual skilled occupations and for time and piece rates. The schedule asks for total payrolls of a group of workers. The time period covered is one month for all branches of industry. As, however, wages are paid weekly, the following procedure is followed : on a calendar printed on the questionnaire the employer notes the days worked by the establishment during the reporting period ; the weekly wage is worked out from 24 WAGES AND PAYROLL STATISTICS these particulars, whereby public holidays during the reporting period are taken into account. In India, returns from factories and railways show the average daily number of persons employed and the total wages paid during the year ; separate figures by age and sex are not obtained. In mining, separate figures are obtained by sex as well as for certain major occupational groups ; total wages are for work done during December of each year ; number of man-days worked during December are shown as well. For plantations, data are collected for March and September of each year ; they cover labourers only ; separately for men, for women, and for children, the total number on the books, the average daily number and the total monthly cash wages are ascertained ; no information is called for on rations, subsistence allowances and other payments in kind. In Ireland, particulars are obtained in respect of wage earners (including home workers). The information asked for is as follows : (a) total earnings of wage earners during the six months ended March or September ; (b) number of wage earners (including juveniles), total earnings and total number of man-hours worked in the pay week ending nearest to 1 March or 1 September. In Italy, the form calls, separately for each pay period ending during the given month, for the number of workers employed at the end of each pay period (separately by sex), the total number of man-days worked during each period and the total number of man-hours worked during each period. In the Netherlands, separate information is asked for in regard to each worker, namely, sex, age, occupation, degree of skill1, earnings, number of hours worked and family allowances. In Norway, the schedule sent out by the Norwegian Employers' Association asks for payrolls and man-hours worked of groups of wage earners of either sex, young workers (men under nineteen and women under eighteen years of age) and workers over sixty years of age. In Sweden, the enquiry into wages and salaries in commerce which was initiated in 1948 and will be carried out in September of each year is exceptional, in that information is requested on each individual worker (sex, age, occupation, rate of pay, etc.). The other statistics are based on summary information regarding groups of employees. For the annual statistics of wages, separate data are requested in respect of (male and female) working foremen, adult workers and juveniles respectively. For the quarterly payroll statistics, a single pay period is used ; that pay period is indicated on the return by its first and last dates. No special adjustment is made if a holiday falls in the report period, but periods including holidays are avoided wherever possible. 1 There are three groups : skilled, semi-skilled and unskilled. I n order to obtain a classification of the occupations in these groups according to uniform standards, stencilled lists of the occupations in each industrial branch and their classification by degree of skill are added to the forms despatched. The skill which t h e worker has attained personally is n o t considered, e.g., a worker sixteen years old and just in training as a carpenter has t o be mentioned in t h e form as skilled. STATISTICS OF ESTABLISHMENTS 25 The schedule utilised in the October enquiry in Switzerland refers to one pay period during the month, the particular period being left to the choice of the employer. For each category of workers, total wages paid and total number of hours worked are to be entered. Holidays are relatively rare in October ; if the pay period referred to contains a holiday no adjustment is made. In the United Kingdom, separate figures are asked for by age and sex, but not by degree of skill, industrial status or occupation. The schedule asks for the total numbers employed and the total wages paid in one week. If the selected week is affected by holidays, firms are asked to substitute the nearest normal week. In the United States, no earnings data are reported by sex, age, skill or occupation, and the schedule asks for total payrolls and not for individual earnings. The period covered is one payroll period ending nearest the 15th of each calendar month, and in most cases the period reported is one week ; if the report covers a period other than one week, or includes hohdays, or varies from a full work week for other reasons, adjustments are made to put such reports on a one-week basis ; this is done by means of a question on the schedule which secures information on the number of days the majority of employees worked both in the desired week and in the period actually reported. I t will therefore be seen t h a t in a few countries earnings are asked for for each individual worker ; to the examples given in the case of the Netherlands and Sweden (in commerce), other examples could be added, such as Bulgaria, Denmark and Mexico. But in most countries the summary surveys conducted each month, each quarter or twice a year call for the total wages paid to certain groups of workers. The summary method requesting data on payrolls, number of workers, man-days and man-hours worked of certain categories of workers has decided advantages in economy and speed in the publication of the results over the method asking for information on each individual worker ; such detailed enquiries could be reserved for more thorough surveys to be carried out at suitable intervals in order to get complete information on wages, salaries and other conditions of work. The Conference will no doubt wish to make a recommendation on t h a t point and a draft resolution is included for that purpose a t the end of the report. D E F I N I T I O N OF EMPLOYEES The way in which the different countries define the categories of workers t o be reported on the schedules is summarised in t h e following table : 26 WAGES AND PAYROLL STATISTICS United States Coverage British CaAustraHonnada lia duras Wage earners . X Foremen . . . X W o r k e r s o n sick leave . . . . Workers on paid vacations . . H o m e workers . X W o r k e r s o n mili t a r y service . Strikers . . . . • X X FinGer- GuateIreIndia1 France many mala land land X X . . "x4 Italy NeSwit- United Mining Swether- Norway zer- King- and Other 2 den lands land dom manu- branfactur- ches ing X3 X X . X X . . . X X X X X X X X X • • • X • . X X X X X X . X X X X . X • . . X X X X X X X X X • . X . • Salaried employX Pensioners . . . . P e r s o n s working for commissions X Technical a n d professional personnel . . Senior supervisors . . . . Executives, man a g e r s , directors . . . . P r o p r i e t o r s , firm members . . X . . • • . X4 • • . • • . X6 . . X • X X X4 • . X X X4 • X X • • . X4 , , • • Note : A X indicates that the item is included, a dot that it is excluded. A blank indicates that no information is available on this point. 1 Factories and railroads. s Annual series for wage earners ; a separate series for salaried employees is carried out in September oí each year. 3 Full-time workers only. " All employees earning less than 3 s . 200 per month. * Separate schedule. I t appears t h a t in the majority of countries information is requested on wage earners only, in the cases where the series is restricted to manufacturing industry or to mining, manufacturing and transport ; when the economic coverage of the series is broader, both wage earners and salaried employees are usually included in the returns. I n cases where the economic scope is a very broad one, either wage earners or production workers are covered in mining and manufacturing and both wage earners and salaried employees are covered in the other branches (United States) or both wage earners and salaried employees are included in the returns for all branches of economic activity (Canada). As long as, in the branches where information is asked both for wage earners and for salaried employees, results are published separately, no recommendation would seem necessary. I t is, of course, obvious STATISTICS OF ESTABLISHMENTS 27 that, other things being equal, a series covering salaried employees in addition to wage earners is to be preferred. Workers on full time as well as workers on part time are included in all countries (except the British Zone of Germany) ; this minimises the work involved for the establishment when making the returns and is in line with a previous recommendation urging that summary surveys should request information on total payrolls, etc., for certain categories of workers and not for each individual worker. All countries include piece workers as well as hourly-paid workers. If departments such as maintenance, shipping, power-house, etc., are found in an establishment, the workers employed in them are included in the returns in all countries. To achieve maximum international comparability, wage earners up t o and including the working foreman level should be covered. Wherever possible, data on salaried employees should be published as well. As an example of complete and detailed definitions, the ones used in the United States are reproduced below : Production and related workers include working foremen and all non-supervisory workers (including lead-men and trainees) engaged in fabricating, processing, assembling, inspection, receiving, storage, handling, packing, warehousing, shipping, maintenance, repair, janitorial and watchman services, products development, auxiliary production for plants in use, e.g., power plant and record keeping and other services closely associated with the above production operations. Excluded are supervisory employees (above the working foreman level), the clerical staffs and other groups of employees engaged in the following activities : executive, purchasing, finance, accounting, legal, personnel, professional, and technical activities, etc. Employees (not above the working supervisory level) such as sales persons, shipping and receiving clerks, stock clerks, labourers, caretakers, general office clerks, office machine operators, drivers, installation and repair men, demonstrators, alteration hands, elevator operators, porters, janitors and watchmen and other employees whose services are closely associated with those of employees listed above. Not included are proprietors, firms members, officers of corporations and other principal personnel such as buyers, departmental heads, superintendents and chain store managers, whose work is above the working supervisory level. Workers on paid vacations should be included, since vacation pay is part of regular payrolls in most countries. With regard to workers on sick leave, sick leave pay is paid by employers in certain countries, whereas it is paid by a social security scheme in others. Workers performing military service, strikers and pensioners should be included only to the extent t h a t they were 28 WAGES AND PAYROLL STATISTICS part-time workers during the survey period and received pay for their services. Home workers should be excluded. DEFINITION OF PAYROLLS The third question to be reviewed in this section is how the various countries define the figures of payrolls to be furnished by the establishments. The available information is summarised in the following table : Coverage Cost-of-living b o nus . . . . Attendance bo- British CatastraHonnada lia duras Swit- United NeUnited Swezer- KingItaly Japan ther- Norway States den 1 land dom lands ' V X X A n n u a l , Christmas, etc. . . Other . . . .• 1 X 1 X X Vacation p a y . Holiday pay. . X Reimbursements for o u t l a y . . Dismissal p a y . Commissions X D e d u c t i o n s , fines X2 X X . J F a m i l y allowances . . . . X Payments in k i n d . . . FinGer- GuatoIreFrance India» land many mala land X X . X X X . • • X • X • • • X X X X . X • X X • IX • • X X4 X • X . • X X • • X . • • X X V X X • X X - X X • • • X • 1 Jx \x ' ' •X' • X x • X .6 • • X X . • • X X X • • X Noie : A X indicates that the item is included, a dot that it is excluded ; a blank indicates that no information is available on this point. 1 Annual or others. ' Except rent. * Factories and railroads only ; all cash payments are included, except as indicated. * Reported separately. • Annual enquiry. « Except for hotels. ' If paid regularly. In all countries (except the British Zone of Germany) payments made to employees having worked at any time during the survey period are included in the returns. All countries include payments made to piece rate workers, in addition to those made to hourlypaid workers. Overtime pay is included in all countries. With regard to bonuses, cost-of-living bonuses are included in the returns in all countries for which information is available. STATISTICS OF ESTABLISHMENTS 29 Other bonuses are also included, provided they are paid regularly and at not too long intervals (from two months in J a p a n down to every pay period in the United States). Annual bonuses, Christmas bonuses, thirteen months' pay, etc., are usually excluded, as also are gifts and gratuities paid at irregular intervals or paid for work not done during the pay period covered b y the survey (dismissal pay, etc.). I n certain countries (Scandinavia, Netherlands, etc.), wage surveys are made for the purpose of checking up on the application of collective agreements, etc., by employers' associations or the State, and it seems unlikely t h a t any payments not in conformity with such agreements or regulations would be reported. The majority of countries include vacation and holiday pay (in Italy, such pay is excluded from the computation, but information on this point is collected b y means of the same schedule) ; only Norway, Switzerland and the United Kingdom exclude one or both of these payments. Payments in kind are included in some and excluded in other countries. When they are included, the criteria used to estimate the value of such payments are different. I n Australia, meals, etc., are deemed to have a value of 15s. per week and quarters are deemed to have a value of 5s. per week ; in Finland, such value is estimated by employers on the basis of regulations published b y the Ministry of Social Affairs ; in Italy the local market prices are used as a basis of valuation b y employers ; in Norway, the practice of the taxation authorities is used by employers ; for the other countries, no details on this point are available. Since a good many countries exclude such payments after having found it impossible to arrive at satisfactory estimates of their value (France, Germany), it would seem advisable to recommend that payments in kind should be shown separately in all countries where such payments are included in the returns. Family allowances are another item where treatment in the various countries is different ; the reason is t h a t whereas in some countries such payments are made by employers, in others they are made by social security institutions, and in others still directly by the State. Given this diversity of systems, it would appear advisable, as has been done in the case of payments in kind, to recommend t h a t in the countries where family allowances are included in payrolls figures, they should be shown separately. A feature of the Australian statistics is t h a t directors' fees are included in the returns, as also are wages paid by employers 3 30 WAGES AND PAYEOLL STATISTICS to their private domestic servants. I n the Netherlands, for certain branches (building for instance), payments for travel hours are included in total payroll figures and the number of hours spent travelling by workers is included in the figure of man-hours. Sweden includes in its annual enquiry sick pay and accident compensation benefits paid by employers. OTHER INFORMATION R E Q U E S T E D One last point may be mentioned briefly in this section, i.e., to review what other questions are included in the schedule, besides those relating to payroll figures and to number of workers employed. In Canada, the monthly questionnaire also asks for a statement of the number of women employees, the number of wage earners for whom the employer can furnish statistics of hours worked, the number of hours actually worked by such wage earners in the last pay period in the month, and the amounts which they receive in wages. Provision is also made for the entry of data on man-days in the case of casual workers. Where paid vacations or holidays fall within the reported pay period, firms are asked to include the number of vacation or holiday hours paid for with the number of hours actually worked. The hours reported are derived from payroll data for the individual wage earners ; they are not computed on the basis of the number of hours or days an establishment or a given department of an establishment has been in operation. In Finland, the figure of total hours worked is based on the hours worked by each individual, hours spent on paid vacations or holidays being based on the number of normal hours worked. In the British Zone of Germany, the number of man-hours lost as a result of vacation, sickness, or other reasons are separately computed in March and September of each year. The total number of man-hours worked are computed by employers on the basis of the payroll data for each individual worker. In Norway, since payroll figures do not include vacation or holiday pay, man-hours spent on paid vacation or holidays are not included. The same is true for Sweden, where in the quarterly statistics periods spent on vacation, on the sick fist, etc., are excluded. In the United States, the schedule requests the number of workers and the number of man-hours worked in addition to the amount of payrolls. The man-hour figures reported include the employer's own account of hours paid for but not worked, such as vacation hours. The figure on man-hours worked is usually derived by the reporting establishment from payroll records of the individual employees, and is not a computed figure obtained by multiplying the hours of activity of the establishment by the number of workers employed. Overtime hours, even though paid for at premium rates, are not to be adjusted to include " hours paid for and not worked " ; only the actual hours worked are to be reported. Similarly, hours worked on Sundays or holidays, even though higher rates may be paid on these days, are considered straight time hours in computing the total of hours actually STATISTICS OF ESTABLISHMENTS 31 worked. If employees are absent during the pay period reported, but are on paid vacation or paid sick leave, the establishment is requested to estimate the number of such hours of absence and include this estimate in the total number of hours actually worked. If an employee elects to work during his vacation period and to receive pay in lieu of vacation, the establishment is requested not to include the paid vacation hours in such instances in the hours worked total but to include only the hours the employee actually worked during the period. I n all countries for which information is available the figures of the total number of hours actually worked are derived from payroll records of individual employees and are not an estimate based on the number of hours a certain plant or department of an establishment has been in operation. The inclusion in or exclusion from the total number of hours worked of hours spent on vacation or holidays depends on whether payments for such vacation or holidays are included in the payroll figures or not ; estimates of hours spent on vacation or holidays are either left to the individual employer (United States) or left to the employer in accordance with certain definite rules (Finland). Procedure In this section the procedure used in the various countries to prepare, send out, check and complete returns will be discussed ; the various methods of indexing and classifying establishments and their returns will be reviewed, and the procedure followed in treating defaulting returns will be examined. Another point will be to find out whether the same schedule is used for several enquiries or whether a new schedule is used for each enquiry and, in the latter case, whether the answer to the preceding enquiry is entered on the schedule by the statistical agency or whether the preceding answer, although not entered on the new schedule, is used later on by the statistical agency to check the new information furnished by the establishment. The legal or other means used by the statistical agency to ensure the compliance of the establishments included in the sample will also be briefly mentioned. In Australia, the schedules are filled out each month by the employers and sent, together with their remittance, to the taxation authorities. One copy stays with the branch of the Taxation Department in each State, one is sent to the Commonwealth Statistician, and the third is returned to the employer as receipt, together with a new blank form. Returns are identified by permanent registration certificate numbers ; the information shown is transferred on to punch cards which, prior to this stage, had been mechanically placed in numerical (registration) order. 32 WAGES AND PAYROLL STATISTICS At the date of closing down for tabulation, some 10 to 15 per cent. of current returns are generally outstanding ; in such cases, figures punched for the previous month are reproduced automatically for the current month ; outstanding returns represent less than 5 per cent, of the total number of employees covered by payroll tax returns. Routine checks of the consistency of figures shown on current returns are made (a) by punchers who view the interpreting machine's figures on the top edge of the card (the last month's figures on a filled card are always automaticahy reproduced on the fresh card, which then takes three more months' figures, which, together with registration numbers and industry code, are automatically printed along the top edge of the fresh card by an interpreting machine) ; (b) by " needling " of punched cards prior to tabulation ; (c) by examination of tabulated results for individual industries (in the case of employment data). All large and irregular variations from previous months' figures are queried and checked against the cards while they remain in industry order. If necessary, queries are sent to liaison officers located in each State. In Canada, monthly card questionnaires, addressographed with the name, address and serial numbers of the individual firms or branches, are regularly sent in window envelopes to establishments ; the serial numbers indicate the province, the general area, the city, the industrial group and subgroup to which the establishments belong, as well as the individual numbers assigned to them. The completed returns are filed according to provinces by industry and in numerical order of the serial numbers. When the products manufactured by the establishments change, the firms are recoded in the new classification ; in such cases the basic figures of the establishments concerned are continued in the former code while the present figures are assigned to the new code with " nil " basic figures, thus showing the decline in activity in the original line of business and the increase in the new line. Firms whose returns are late are immediately followed up by circular, personal letter, telegram and telephone, in that order. When these steps do not produce results, personal calls by Bureau representatives usually prove effective. The reports for defaulting firms are given different treatment, in accordance with fixed rules. When the firm first falls into arrears, its preceding month's return is usually continued for the succeeding month ; if the defaulting establishment belongs in a highly seasonal industry, the report for the preceding month will in periods of seasonal decline be reduced in accordance with the trends displayed in past years by the same firm and those revealed in the current returns from establishments in the same industry and area. If efforts to obtain data from employers do not succeed, their figures will be dropped from the tabulation. In general, however, excellent co-operation is obtained from industrialists who are compelled under the Statistics Act to provide information required by the Dominion Bureau of Statistics. New questionnaires are sent out monthly and used once only ; the establishments' previous answers are not entered on the form before despatch. Communications to the Dominion Government are post free in Canada ; stamped and addressed envelopes are provided for the return of the monthly postcard questionnaires. The data are checked by inspection for completeness and by inspec- STATISTICS OE ESTABLISHMENTS 33 tion and reference to preceding reports for reliability and consistency ; consistency and reliability are further checked by the calculation of monthly averages of weekly salaries and wages, weekly hours of work and hourly earnings for each establishment furnishing the data ; where the current figures appear out of line without adequate explanation, confirmation or correction is requested from the firm. In such cases a copy of the report in question with copies of preceding data are sent to the employer to illustrate the discrepancies which he is requested to explain. In the case of Finland, each employers' association prepares, sends out, and checks the questionnaires. Employers' organisations are also concerned with the bringing in of late answers. Questionnaires are used once only and the establishments pay for the return postage ; they are legally compelled to furnish the employers' organisations with the information requested. In France, the returns are transmitted to the Statistical Institute, after verification by the Finance Department. The Institute has a register where every establishment has been given a twelve digit code number, the first three for the industry, the next two for the region (" department "), three for the municipality and one for the legal form of the enterprise ; the three last digits are the identification numbers of the establishment. After computation, the returns are sent back to the taxation authorities. In the British Zone of Germany, the questionnaires are sent out to selected establishments via labour offices, and are assembled, subjected to preliminary check and forwarded to the Regional Statistical Office for completion. There they are coded and filed by machine as far as possible. After completion, the returns, classified according to branches of industry, are preserved by the Lander. A new form of the same type is used for each survey and is used once only ; prepaid envelopes are not furnished to the reporting establishments. Answers are checked for completeness and consistency by the labour offices acquainted with the firms and then by the Regional Statistical Office prior to approval. Under Ordinance No. 71, employers are legally bound to give complete and correct particulars. In Ireland, code numbers are used for the different establishments in industries and returns are filed according to industry. Separate forms are issued for each half-yearly enquiry and include the answers furnished at the previous enquiry. Prepaid envelopes are used. The answers are checked by comparison with the previous returns, taking into account the relation between numbers employed and earnings, changes in rates of wages during the period, the number of workpeople affected by such changes and the total amount of any increase or decrease for a full working week. A further check is provided by a new heading included in the form for the first time in connection with the enquiry for March 1948 ; this heading asks for the total number of man-hours worked per week. Data which appear incorrect are queried by correspondence (in such cases a copy of the return is enclosed) and by telephone. Compliance of employers is voluntary and information is usually supplied directly by establishments, although in some cases the returns are completed by public auditors. In the Netherlands, a register card is made up for each establishment showing municipality number, identifying number, name and address, code number of the industry, and for each enquiry separately, the 34 WAGES AND PAYROLL STATISTICS number of workers by sex and the number of male workers by age (adults and juveniles).1 The back of the card is designed to indicate for each enquiry the dates on which the forms were despatched and returned. Space is available for a period of about ten years. These cards are inserted in boxes by municipality, each municipality by industrial branch, and each branch by establishment identifying number. Eorms to be sent out and returns are checked with this register. If an establishment reports a change in site or product manufactured a transfer of the card to another municipality or industry is made. A new identifying number is given in case of change of location only. If an establishment comprises several locations in different municipaUties or in different industries, a " total" address card is made for the head office referring to the separate location cards, these in turn referring to the " total " card. As a rule the forms for all locations are sent to the head office of each firm. As the operations of civil engineering and building firms are not confined to the site of the head office, these firms are requested to send in forms for each municipality separately where work is in progress ; if necessary, forms will be sent in for each separate project. In this way information is obtained on workers' wages at the site of the construction or building project. The method of obtaining defaulting reports consists of reminders by letter or telephone and, if necessary, by visits. Schedules are used once only and prepaid envelopes are supplied. In case the return needs checking, this is done by comparing it with the preceding returns. If the return is incomplete, inconsistent or seems unreliable, a copy of the return or a part of it is sent back to the reporting firm. A number of establishments have authorised the Central Bureau of Statistics to send a copy of their returns to their respective employers' association ; these firms are requested to fill in their return in duplicate. Compliance of establishments is voluntary. As a rule the information is sent in by post by the employers. In case of serious difficulties, an agent of the statistical office gathers the information on the spot. As a rule no checking by comparison with the actual payrolls of the firm is done. In Norway, the series is prepared on the basis of an agreement between the Central Statistical Office and the various employers' associations. In the case of the Norwegian Employers' Association, schedules are sent out every quarter ; code numbers are used combining establishment number with industrial branch and region ; returns are filed by industry. The same returns are used four times a year and the previous answer is used for comparison. Errors are investigated by returning the answers to the firm. The establishments pay the postage. The compliance of employers who are members of the Association is compulsory, but membership is voluntary. In the case of the National Association of Metal Manufacturers, the statistics are divided into 24 industrial classes with subdivisions bringing the total number of subgroups to 80 ; the grouping is done by degree of skill, by occupation, by age and by sex. The schedule asks for the earnings of each worker and the form asks for the payroll 1 A central system of registering reporting establishments, sending out forms and checking returns for common use in several statistical surveys (production, employment, wages, etc.) is in preparation. STATISTICS OF ESTABLISHMENTS 35 number of each individual in order to make an identification of each individual worker possible for checking purposes. Forms are sent in by the members of the National Association of Metal Manufacturers each quarter. Returns are checked by the Statistical Department of the Association to find out whether they are in conformity with the minimum wage requirements of the collective agreement between the Association and the Norwegian Federation of Labour. Returns are filed by region and by the number of the member. As long as an establishment is a member of the Association, a change in the goods produced does not affect its position in the statistics. Prepaid envelopes are not supplied. Compliance of all members of the Association is compulsory, and members can be fined if they send in their returns too late. No agent of the Association visits the plants to help in the preparation of the returns. In Sweden, the basic data for wage, salary and payroll statistics are collected on printed forms which have been prepared with the help of the employers' and workers' organisations particularly concerned. The name, address and code number (including a provincial, branch and establishment number) is entered in advance on the form, which is then sent out by post together with a prepaid envelope. The data for wage and salary statistics are returned directly to the Social Board ; the returns for the payroll statistics are sent to the Provincial Labour Committee which transmits them to the Social Board. The returns are filed by branch ; they indicate the line of production in which the undertaking is engaged, and a check is made to ensure that the code number agrees with this information ; the code number registered in the list of addresses is also altered if the Social Board learns from the Provincial Labour Committee or from another source that an undertaking has changed its line of production. The data received are compared with previous returns, with information supplied by other undertakings in the same branch and with the general averages obtained. Any returns considered to be inaccurate are sent back to the undertaking with a letter of enquiry. For annual wage statistics a new schedule is used each year and previous data are not entered upon it ; for payroll statistics the same form is used for the four returns in the year. In the October enquiry in Switzerland the schedules are numbered according to the association to which each establishment belongs, and by means of this number the industrial branch of the establishment can usually be ascertained. The completed forms are then classified by association. Plants or departments of an establishment which do not belong to the same industrial branch as the head establishment are classified separately in the branch to which they belong. Establishments which have not returned the schedule are reminded twice in writing ; if necessary, important establishments are contacted by telephone. Schedules are used once only and establishments pay the postage ; it is only when the statistical agency is sending back a return for clarification or change that prepaid envelopes are used. The statistical agency checks the returns from large establishments, and in doubtful cases the returns furnished are compared with those of the preceding year ; discrepancies are settled by letter or by telephone. The survey is based on the Act of 8 October 1920 which compels employers to furnish the basic data. In the United Kingdom, the questionnaires are despatched to the firms by post. On receipt, the completed returns are scrutinised to see that the information given is reasonable and where necessary the 36 WAGES AND PAYROLL STATISTICS returns are compared with those for previous dates. The firm's previous return is not copied on to the current form. Where necessary queries are sent by post to the firms. The enquiry is on a voluntary basis and no steps are taken to obtain complete returns except by reminder procedure ; no further steps are in fact necessary, owing to the very extensive response to the enquiries. If the product of a firm changes, the return is included in the figures for the new industry. One return is used for each enquiry, and prepaid envelopes are furnished for replies. In the case of the United States, the basic procedure used is as follows : each schedule carries data for twelve months and is returned to the employer each month so that he may make his report for the current payroll period. The form is frequently referred to as the " shuttle " schedule. When the schedule is received in Washington (or in the State agency collecting the da+a for the Bureau of Labor Statistics), it is edited and sent to the Bureau's tabulating unit for punching on I.B.M. cards. The schedules are then posted back to the employer at the proper time for the next report. Tabulations are prepared ' from the punched cards. Individual establishment records are maintained by line posting of data (from listings prepared mechanically) on office record cards. The office record cards are filed by industry and by State within industry. It is also necessary to maintain a complete directory of reporting establishments in various sequences for reference purposes. The Washington office and the various State * agencies must maintain an addressograph file of plates for addressing a new set of schedules once each year. During the past war, the Bureau generally followed the principle of maintaining establishments in their pre-war industries even though shifts from one product to another took place in the plants. The establishments are now being shifted to their current post-war products and activities and it is contemplated that code changes will be made once a year to keep the establishments classified properly. Returns from defaulting establishments are estimated for one month or possibly two months if of extreme importance, but extraordinary efforts are devoted to the securing of reports as soon as possible. The usual routine is a telegram followed by additional telegrams, by telephone calls and, in most urgent instances, by a personal visit by a Bureau of Labor Statistics field representative. All reports to the Bureau are made at Government expense through the medium of prepaid envelopes. Data are carefully checked and edited for consistency and accuracy. As the same report carries information on employment and length of work week and other pertinent data and remarks, it is frequently possible to detect errors in reporting. These are returned to the firm for correction. The reporting is entirely voluntary (except in a few States). No regular checking of employers' reports is made against those of other agencies, but occasionally an opportunity arises to make general comparisons aimed at determining the nature of the reports being made and their general conformity to instructions. No attempt is made in such checking to estabHsh an error against any particular firm. I t can be seen t h a t in most countries for which information is available on this point, except Sweden, the United Kingdom and the United States, reporting by employers is compulsory ; for the STATISTICS OF ESTABLISHMENTS 37 few other countries where employers are not required to furnish information, the statistical agency feels the need of some sort of legislation making it compulsory for employers to furnish the required data ; this is the case in British Honduras, in India and in other countries. All kinds of procedures are to be found with regard to the sending out and receipt of forms, from the use of the form once only (as in Australia, for instance) to the use of a single form over a period of time (the quarterly enquiry in Sweden, amongst others) and passing through the system where a schedule is used over a period of time but each month a part of the returns is transferred to records of the statistical agency (Netherlands and United States). All countries check on the completeness, reliability and consistency of the returns by reference to previous returns ; a few compare the returns with those in the same branch. Computation The points raised in regard to computation include the following : how returns for pay periods of varying lengths are adjusted to the length used as the basis for computation ; how defaulting returns are estimated ; how returns for newly created or permanently closed establishments are treated, etc. With regard to the computation of average earnings, the questions to be examined are whether any payments are deducted from the gross figures of payrolls before the computation is carried out, whether the figures are weighted, and if so what is the basis of the weights ; the question of how detailed the computation is (whether by sex, industry, occupation, region, etc.) will also be briefly reviewed. An important point is to find out for what countries the results of sample studies are adjusted on the basis of certain benchmark data (industrial censuses, social insurance returns, etc.). Finally, the question will be raised whether the results of the statistics of establishments are completed b y information drawn from other sources in the case of certain industries like mining, Government service, etc. In Australia, no appraisal of average earnings data from sources other than payroll tax returns has been made ; the data on employment by industrial groups are periodically adjusted to benchmark data (census, annual factory production returns, etc.). Only average weekly earnings for male unit employed are computed. Methods of computation are explained in Chapter V. In Canada the enquiry takes place monthly ; missing reports are estimated in the preliminary monthly figures and are replaced by the figures contained in the returns in the final tables. Losses due to tern- 38 WAGES AND PAYROLL STATISTICS porary or permanent closing of establishments are reflected in the figures on employment, payrolls and man-hours ; seasonal activity such as that in canning establishments is reflected in increased employment, payrolls and man-hours ; when operations close down completely during the period of seasonal inactivity, the names of the employers are taken off the active mailing lists until operations are resumed during the next season. Where establishments report data for pay periods exceeding one week in the case of any or afl of the employees, payrolls and the hours reported are reduced by an appropriate proportion to give figures which will represent the earnings or the hours in one week. The only payments deducted from payroll figures (reduced to a weekly basis) are retroactive pay or occasional or other payments accumulated over a period exceeding a month. The average earnings are computed by dividing the total amount of weekly salaries and wages by the reported number of salaried employees and wage earners ; the average hourly earnings result from the division of the amounts of weekly salaries and wages by the total number of hours worked. The figures are unweighted. Monthly averages are not computed by sex nor by occupation but are computed by industry and by region. The results of the monthly surveys are not at the moment adjusted to benchmark data. The matter of weighting the index numbers of employment and payrolls is under consideration. The monthly surveys do not make estimates for establishments, classes of workers or industrial branches not covered ; the enquiries are supplemented by information from the annual censuses of industry in the case of mining, manufacturing, construction, public utilities, etc. Monthly information in respect of persons employed in the Dominion Government service is available and steps are being taken to obtain data for provincial Government employees. No appraisals and comparisons of earnings and aggregate payroll data from various sources have been published by the Dominion Bureau of Statistics ; comparisons of the monthly data with those of the annual censuses of manufacture are regularly made for Office purposes. In the case of Finland, the enquiry takes place once a quarter (twice a year in the textile industry, in which case quarterly figures are estimated). Average earnings are obtained in the various branches by dividing total payrolls by the number of man-hours ; the general average is based on current weights. All computations are made separately for adult males and adult females (over eighteen years of age) in the different industrial branches. Enquiries have not been supplemented by estimates from other sources. In France, aggregate wages are based on all returns. Average earnings are computed on the basis of one worker for every fourteen workers listed in the returns (each page contains fourteen lines) ; further, one return out of every fourteen is utilised for firms with less than fourteen employees, one return out of every seven for firms having 15-28 employees and every other return for firms having more than 28 employees. No breakdown by region is possible, since some returns may cover several locations and no adjustment to benchmark data is feasible. In the British Zone of Germany the enquiry takes place quarterly and the chain method is not utilised. Closed establishments do not report and missing reports are not estimated. Establishments partially STATISTICS OP ESTABLISHMENTS 39 closed during the reporting period (strikes, etc.) only report the payroll for man-days worked which are crossed out in the calendar supplied on the form. In case of bankruptcy the establishment is excluded ; so also are seasonal establishments. Comparisons between different branches of industry are possible, since coverage hardly varies from one quarter to another. General averages of groups of workers within the industrial groups are calculated with the figures of the workers covered, e.g., by current weights. The averages in the industrial groups are computed with the help of manpower division employment returns. As experience has shown that the latter change little, this scheme of weights remains in force for one year unless special circumstances render a change necessary. Total averages are computed separately by sex and occupational groups on the one hand, by industrial groups and trade groups on the other ; each Land in the British Zone makes a separate report on which the general returns for the British Zone are based. The wages returns obtained by the survey cannot be compared with other statistics, as these do not contain any figures on workers' wages. Enquiries on earnings are not supplemented by information from sources other than direct questionnaires, but the appraisal of statistics of earnings in the British Zone has been undertaken by the Statistical Office for the British Zone, and published. In Ireland, missing reports—which are very few in number—are estimated, and permanently closed establishments are deleted from the scope of the enquiry. Average earnings per wage earner are obtained by dividing total weekly earnings for each of the twelve industrial groups by the total number of wage earners. The index number of weekly earnings is computed to show what the changes in earnings would be if the number of persons in the different individual industries (125 in all) were unchanged. The average weekly earnings per wage earner for each industry at the current enquiry are weighted by the number of persons in the industry at the previous enquiry and the index number calculated showing the changes between the two dates. This index number is then multiplied by the index number obtained at the previous enquiry in order to link back to the basis (September 1939) ; the chain method is accordingly used for the earnings index. In Italy, payments for vacations, holidays, gratuities and family allowances are deducted from the figures prior to computation ; current weights are used. Current weights are also used in Japan. In the Netherlands the enquiry takes place once a year (once every other year for gas and electricity workers). Missing reports are not estimated and closed establishments are excluded. A separate punch card is used for each worker ; punching comprises year of enquiry, industrial group, province, municipality (site of work), group of municipality (six groups ranging from less than 10,000 inhabitants to 200,000 inhabitants and more), sex, age, occupation, category of skill (skilled, semi-skilled and unskilled), earnings, hours worked and family allowances, the last three characteristics being based on the returns for one pay period of one week during the year. Average hourly earnings are computed by adding in each group the weekly earnings and the weekly number of hours worked and dividing aggregate earnings by aggregate hours ; average weekly earnings are computed by dividing aggregate weekly earnings by the number of workers in the group concerned. Distribution of adult workers in a 40 WAGES AND PAYROLL STATISTICS number of wage groups is obtained on a sample basis. In computing the absolute figures, no fixed weights are used ; in computing index numbers the separate indices of the categories of workers are weighted by fixed weights (number of workers). In Norway there is no need to utilise the chain method, since compliance is compulsory ; only establishments in operation are covered and no adjustment is made for seasonal fluctuations. Average earnings are computed with current weights by sex and industry ; payments with no reference to the figures of man-hours actually worked are deducted before computation. In Sweden the annual wage and salary statistics are based as a rule on all the information collected, except that which on examination is considered unreliable. For quarterly payroll statistics, calculation is made of average hourly earnings on the basis of all data considered reliable. Index numbers showing fluctuations are also calculated, by comparing data for those undertakings only which have sent returns relating to two successive dates. The following rules apply to the annual wage statistics : if owing to weather, strikes or other reasons, an undertaking has operated for less than 240 days in the year, no calculation of annual earnings is made ; the same rules apply to all undertakings of a seasonal character such as peat cutting, stone quarrying and stone masons' work, timber floating, sugar mills, constructional work and docking. In all other respects identical methods of computation are used in all branches. As has already been stated, index numbers are calculated according to the chain method ; the index figure relating to a given base period is obtained by successive multiplication of the index figures indicating changes between one report period and the next. Where the material relates to pay periods of varying lengths, it is recalculated so as to relate to a one-month period in the case of salaries and a six-day period in the case of wages. All averages are based on current weights. Separate averages are calculated for working foremen, adult workers (men and women separately) and juveniles, in various branches, geographic areas (provinces or large towns) and cost-of-living zones. It has not been possible to check or compare the Social Board's wage statistics with other published statistics. As regards public works, the Board's statistics have been supplemented by data provided by the Railway Board and the Water Power Board. In Switzerland the enquiry always covers the same establishments, to which newly created firms are added. In case the closing down of an important establishment has a material effect on the results, changes are computed by the chain method by using two sets of identical establishments ; the same method is utilised in the case of any missing returns. As the enquiry is an annual one, the data obtained from seasonal industries always refer to approximately similar situations in the seasonal variation of activity ; for hotels the enquiry is held for the period of maximum activity ; months of enquiry are as follows : February for establishments open in the winter only ; April for hotels in the Tessiti, and July for the other hotels. Varying pay periods are adjusted to pay periods of two weeks' duration. Averages are obtained by sex, by industrial branch and by region as well as for certain categories of workers (skilled, semi-skilled, unskilled) and for a certain number of individual occupations. Comparisons with other sources have been made but not published. In the United Kingdom returns are received in general from identical STATISTICS OF ESTABLISHMENTS 41 establishments on each occasion and comparisons are made on the basis of the returns actually received. In calculating average earnings for groups of industries and for all industries combined, the average earnings for each industry and for each age and sex group are weighted by the estimated total number of manual wage earners employed at the date of the enquiry. No weighting is used in calculating the average earnings in each industry ; they are derived directly from the returns received. Averages are calculated for each industry, each group of similar industries, and all industries combined, and for age and sex groups in each case. No calculation is made by regions. In the United States, identical establishments are compared on two successive dates, but only to ensure comparability. The earnings figures published represent the actual averages shown by the entire list of reporting establishments in the current month. If the comparison of the two samples indicates a significant change in the composition of the sample in the current month, the identical sample is used to compute a link and the current month average is estimated ; when the missing reports have been received and the current sample is again comparable, the figure is revised to the current reported average. If for some reason the change in the sample is so marked that comparability cannot be established, the break or discontinuity is allowed to stand and an explanation is furnished. Average hours worked per week for each industry are derived by dividing total man-hours by the number of employees ; average hourly earnings for each industry are derived by dividing total payrolls by total man-hours ; average weekly earnings for each industry are derived by adding to the sample the reports for establishments which did not report man-hours and then dividing total payrolls by number of employees. In the immediate future, due to the small number of establishments now failing to report man-hours, the weekly earnings and the hourly earnings will be based on the same sample. To compute average hours worked per week for each industry group, averages for the individual industries are weighted by current employment estimates for each industry ; to obtain average hourly earnings for each industry group, averages for the individual industries are weighted by the weight aggregates (estimated man-hours) obtained in the previous computation ; to obtain average weekly earnings for each industry group, group hours are multiplied by group hourly earnings. Total manufacturing, durable goods and non-durable goods averages are similarly obtained at the next level of combination. The earnings data are not adjusted to external data. Owing to the predominance of large firms, there is some tendency for the averages of earnings to be too high if earnings vary by size of firm. There is insufficient evidence to determine whether this has produced a trend bias which would need correction. Most comparisons of these data with the data from censuses have been handicapped because of the lack of census material since 1939. Comparisons with the data from social security or unemployment compensation statistics have been unsatisfactory because of great differences in time coverage and class of worker coverage. It can be stated in conclusion that in most countries average earnings are computed by dividing total payrolls by total number of man-hours worked during the same period, or by the number 42 WAGES AND PAYROLL, STATISTICS of workers ; in other words, current weights are used ; this is sometimes done at all levels, but in a good many countries, amongst them the United Kingdom and the United States, the use of current weights is restricted to the computation of average earnings in individual industries ; at the next level of combination and at the higher levels, the estimated number of workers in the different industry groups, industrial branches, etc., are used as weights in order t o compensate for the lack of representativeness of the sample. I n the case of statistics of establishments, averages are computed almost always by sex and by industry, sometimes by regions, but scarcely ever by occupation ; the computation of average earnings by degree of skill takes place in a good many countries, but is far from general. I t can be said t h a t the method of comparing identical establishments at two succeeding enquiries is never used when computing average earnings ; it is only in cases where returns for important establishments are missing t h a t the provisional figures of average earnings are computed on the basis of two sets of identical establishments ; when computing index numbers of earnings, however, the chain index method is quite often used. I n all countries, the figures used in the computation are gross figures, prior to deductions for social security contributions, trade union dues, bonds, taxes, etc. In no countries are employers' contributions to social security schemes, etc., added to payroll figures before computation. Publication I n regard to publication, the main questions arising are as follows : how often are the results of surveys into average earnings and total payrolls based on samples of establishments published ; what is the time-lag in publication in the different countries ; what are the different industrial branches and classifications (durable goods, non-durable goods, capital goods, consumption goods, etc.) shown in the various countries ; what are the regions shown separately ; are only absolute amounts published, or are both absolute amounts and index numbers shown ; and, finally, are figures on real wages and on take-home pay computed and published. Australia publishes figures on aggregate weekly wages, etc., paid and on average weekly earnings per male unit at quarterly intervals, and index numbers of seasonally adjusted average earnings per male unit at monthly intervals. The time-lag in publication is from seven to eleven weeks. STATISTICS OF ESTABLISHMENTS 43 In Canada the time-lag between the date of publication of the advance statement of employment and payrolls and the date to which it refers is about seven weeks. The time-lag beween publication of the detailed tables and the dates to which their figures relate is two months or more in the case of the monthly surveys of employment and payrolls, and nine or ten weeks in the case of the monthly buUetins on man-hours and hourly earnings. The series is published for nine major non-agricultural industries, manufacturing and non-manufacturing, and for approximately sixty industrial branches of these major groups, including the durable and non-durable categories of manufacturing and their components. Index numbers of average hours, average hourly earnings and average weekly wages will be published when the series has been in existence long enough to make the selection of a suitable base period possible. The Canadian statistics are published on a provincial basis and for each city having a population exceeding 35,000. Data are not at present published for census regions, although such an undertaking is under consideration. Figures on real wages are not published by the Dominion Bureau of Statistics but are issued by the Department of Labour. No information is published on take-home pay, income taxes and other deductions not being estimated for that purpose. In Finland, earnings in absolute amounts are published by sex for each industrial branch ; the general average is published as an index number only and is based on 1939 = 100 ; no separate figures are published for the various regions. Since 1937 the scope of the series has been materially increased ; whereas in 1937 hourly and annual earnings were published once a year, at present annual earnings are not published at all and hourly earnings are published four times a year. The enquiry in France is an annual one and took place for the first time to cover the year 1947 ; time-lag of publication is expected to be some ten months. In the British Zone of Germany the time-lag between date of publication of the regular tables and the date to which they refer is two months ; the classification into large groups, e.g., capital goods, consumption goods, etc., is not made. At present only absolute figures are published. Apart from returns for Länder (regional labour office areas), no regional returns are made except in the case of the city of Hamburg ; the report of the German Mines Director gives information on the regional classification of miners' earnings. In Guatemala only nominal wages are published ; to compute takehome pay the statutory deductions (social insurance deductions covering sickness, unemployment, and invalidity insurance and income or wage taxes) are deducted from gross wages. Deductable wage taxes are not estimated but are noted in the questionnaire as a lump sum for the workers covered and the average is then computed from this total tax. In India the following information is published with a time-lag of normally less than a year : (a) for factories : average annual earnings for ten major industry groups, by provinces ; (b) for railways : average annual earnings, separately for three zones ; (c) for mining : average daily earnings in December for sixteen regions and sixteen occupational groups ; (d) for plantations : average monthly cash earnings and average cash earnings per day, separately for eight districts in Assam. 44 WAGES AND PAYROLL STATISTICS In the Netherlands, both absolute figures and index numbers are published for seventeen main industrial groups and for a large number of subgroups from seven months to one year after the date to which the figures refer. Tables distinguish sex, age, occupation, degree of skill and the various municipalities or groups of municipalities ; no real wages or take-home pay have been published or computed. In Norway the National Association of Employers does not publish the figures, but passes them on to the Central Bureau of Statistics, besides using them for internal purposes. The time-lag between the date of publication and the last day of the pay period covered does not usually exceed three months. Oslo is shown separately in all publications, the second geographical group being the rest of the country and the third column showing national averages. In Sweden the year book of wage statistics appears twelve months or more after the end of the year covered ; preHminary results are published about six months after the close of the enquiry. The published results of the quarterly payroll statistics are available six months after the end of the report period and are then sent to various authorities and undertakings ; it is only after a further period of approximately six months that the results are published officially. Annual wage statistics are published for fourteen main industrial groups and eighty-eight subgroups, showing average earnings per hour, day, week and year, both in absolute amounts and, in the case of hourly and yearly earnings, in the form of index numbers. Certain averages are computed for the various provinces and cost-of-living zones and for the cities of Stockholm, Goteborg, Malmö, and Norrköping. Information regarding mining and the production of minerals is published separately for Central and Northern Sweden. For the purposes of wage and salary statistics, undertakings are classified in cost-of-living zones according to the classification applied in this regard to wage earners in public employment ; for 1935-1945 an old classification into nine zones was used ; from 1946 onwards, the classification of 30 June 1947, providing for five zones, has been applied. In Switzerland, partial results concerning certain industries are regularly published in January, or almost three months after the date to which the figures relate. Earnings both in absolute amounts and index numbers are published. With regard to the regional classification, the results are shown separately for urban, semi-urban and rural zones. In the United Kingdom, results are published with a time-lag of approximately six months. No major classifications, e.g., durable goods, non-durable goods, etc., but only aggregations of industries of a similar nature, e.g., metals, textiles, etc., are published. Both absolute figures and index numbers based on 1938 —- 100 are published. A revised industrial classification has been adopted, beginning with the October 1948 enquiry. For the United States, the earnings data are published about two months following the date of reference and are revised in the two succeeding months if additional reports received indicate that there is a need for it. No index numbers of these data are published by the Bureau of Labor Statistics. Both real wages and weekly take-home pay are computed and published. I n practically all countries information on average earnings and total payrolls is published for major groups of industries, industrial branches and quite often for individual industries. STATISTICS OF ESTABLISHMENTS 45 The same applies to information on average earnings by sex. In only a few countries is the information published separately for each region or for certain groups of municipalities or towns ; the breakdown according to cost-of-living zones is used in one or two countries only. Finally, the United States, Guatemala, the British Zone of Germany (and Austria) publish information on take-home pay (or net wages) whereas the United States, Canada and a good many other countries publish index numbers of real wages. 4 CHAPTER III CENSUSES In a good many countries periodic enquiries into average earnings and total payrolls in a sample of establishments are completed by more general surveys of all industrial establishments or of the production of practically all industrial establishments. A good many of the schedules used for such censuses ask for information on employment and total payrolls. Among the countries for which production censuses or censuses of manufacturing establishments do furnish data on employment and total payrolls are the following : I n Australia, the annual census of manufactures covers all establishments employing four persons or more, or using motive power. In Canada, on the other hand, all establishments in manufacturing industry (excluding electricity and water distribution) are included in the census. I n France, regular censuses are carried out only in mining establishments, which have all been nationalised. In India, the Directorate of Industrial Statistics of the Ministry of Industry and Supply is responsible for conducting annual censuses of manufacturing industry. The censuses so far conducted since 1945 have not been complete ; the census forms call for certain information on total wages paid during the year. In Ireland, the census of industrial production is carried out once a year and covers all establishments employing four persons or more ; the industries covered are mining and manufacturing, building and construction, utilities (gas, water, electricity), transport (canals, docks, harbours and railways), local authorities and Government Departments, and, finally, laundry, dyeing, and cleaning establishments. Norway does not obtain any information with regard to wages based on production censuses. I n the Philippines, owing to the destruction of pre-war records, a new census of industry has had to be undertaken ; it will cover CENSUSES 47 all industrial and commercial establishments employing twenty persons or more. I n Southern Rhodesia, the census covers every year all manufacturing and construction establishments employing six persons or more ; the employers furnish the returns voluntarily. On the other hand, for mining the census is a monthly one and is compulsory. I n Sweden, since 1941, the Board of Trade has been collecting information from undertakings regarding payrolls of wage earners and salaried employees ; these data for 1941-1946 are now being sifted, and will be published during 1949. From 1947 onwards, payroll figures are included in the Board of Trade's annual industrial statistics. I n the Union of South Africa, the census of manufactures is compulsory and includes all establishments employing three persons or more or using motive power. I n the United Kingdom, no statistics of wages have hitherto been collected on the form used for the census of production, but the annual wage bill of each firm will be asked for in the future. I t appears that in a good many countries censuses of manufactures, production censuses, etc., furnish information on total payrolls and sometimes on average earnings, but t h a t the economic coverage of these surveys is, of course, much more restricted than is the case with statistics based on a sample of establishments, since in all countries the coverage is restricted to manufacturing industry, except in Southern Rhodesia, where building and construction are included, and in Ireland, where several other industrial branches are covered. All countries obtain information on total payrolls, but only in the minority of cases is information on average earnings computed on the basis of censuses. To obtain such statistics of average earnings, the number of wage earners and/or salaried employees on the payrolls at a series of pay days is necessary, and only in a few countries do the census schedules ask for the number of persons on the payroll at, for instance, quarterly intervals, to be given. For Australia, the schedule calls on the one hand for the numbers of persons on office and factory payroll on the pay day nearest the 15th of each month (excluding working proprietors and all persons engaged in selling and distribution) — separately by sex — and, on the other hand, for the average weekly number of workers — separately by sex — under the following headings : 48 WAGES AND PAYROLL STATISTICS working proprietors ; managerial and clerical staff, including salaried managers and working directors ; chemists, draughtsmen and other laboratory and research staff ; foremen and overseers ; workers in factory (skilled and unskilled) ; and carters, messengers, and persons working regularly a t home for the establishment. The Canadian schedule calls for separate information on supervisory and office employees, and on wage earners ; under the first heading the number of supervisory and office employees, such as working proprietors, managers, superintendents, professional and clerical employees, and full-time travelling salesmen are given as average numbers for the year ; owners are included also ; on the other hand, supervisory or office employees engaged on new construction work or employees on the wholesale or retail side of an establishment should be omitted. The number of wage earners is t o be given separately for each sex, for the last day of each month or for the nearest working day ; only those wage earners who are engaged on the manufacturing side of the estabhshment, whether paid on a monthly, weekly, hourly or piece-work basis, are to be included ; so also are foremen and overseers who perform, work similar to the work of wage earners under their direction, as well as workers engaged in delivery work or in a warehouse ; wage earners employed on new construction work are to be excluded. In Ireland, information is to be given, separately by sex and separately for employees under eighteen years of age, on the number of persons engaged in the industry, trade or business during the pay week ending nearest the middle of October of each year ; the schedule calls for separate information on (a) proprietors working in the business ; (b) all salaried employees (including managing and other directors working in the business, managers, clerks, typists, store book-keepers, travelling agents, etc.) ; (c) industrial workers (including foremen) employed a t the factory or at places where work is carried out by the firm ; (d) storekeepers, cleaners, messengers, packers, carters, etc. ; and, finally, (e) workers employed in their own homes on work for the estabhshment (" outside piece workers " ) . A separate entry in the schedule calls for the numbers of workers mentioned under (c) and (d) during pay weeks ending nearest the middle of each of the twelve months. In Southern Rhodesia, figures on employment are collected according to race and sex only ; with native employees it is im- CENSUSES 49 possible to ascertain particulars of age, degree of skill or occupation. Payments and allowances to the " operative " staff and the " administrative " staff are shown separately by race and sex. All employees of the industrial firm are covered by the census, including working proprietors, managers, superintendents, etc. The number of workers stated as employed is the average of the numbers employed at the end of each month. I n the Union of Sovth Africa, distinction is made between Europeans, natives, Indians and other Asiatics, and other coloured persons, on the one hand, and between (a) working proprietors, (b) managing directors, managers, accountants and clerical staff, and (c) all other employees (including artisans and persons employed in their own homes), on the other ; the information is requested separately for each sex and a special question is included requesting information on the number of European apprentices and juvenile employees (under eighteen years of age). Only those engaged on the industrial portion of the business to which the return relates should be shown ; clerks, salesmen, storemen, drivers, travellers, collectors, warehouse hands, etc., exclusively engaged in retail trade should not be included ; employees who through their absence on military duty did not perform any work during the period covered by the return must be omitted, even though they may still figure on the payroll of the establishment. The " average number of employees throughout the twelve months " is asked for in each case. I n the United States, the number of production workers on the one hand, and the total number of employees on the other, is to be reported for the pay period ending nearest the 15th of each month. The definitions of " production and related workers " and of " total number of employees " are those used in the Bureau of Labor Statistics' establishment series (see preceding chapter). For the pay period ending nearest 15 October 1947, the information was to be broken down according to sex, and the numbers of " force account construction workers " were to be given; these are employees engaged in construction of major additions or alterations to the plant who are utilised as a separate work force. With regard to the categories of workers covered by the censuses of manufactures, production censuses, etc., it will be seen t h a t in practically all cases either the average number or the number at a certain date (for instance, 15 October) is requested in all countries. I n the case of wage earners, production workers, 50 WAGES AND PAYROLL STATISTICS etc., numbers are usually requested for the pay period ending nearest the middle or the end of each month. Finally, the scope of the term " wage earner " and " salaried employee " is very different in the various countries ; some countries include working proprietors, others exclude them ; some include home workers, others exclude them, etc. - The amount of additional details (by age, by sex, b y race, etc.) also varies widely from one country to another. The same differences in scope and definition are, of course, to be found in the case of the payroll figures to be reported. I n Australia, amounts of remuneration of working proprietors are not to be shown ; for total wages and salaries, the figures should include overtime, bonuses, etc. No further instructions have been issued on the subject of bonuses, etc., paid to employees, but as they have to be included for payroll tax purposes, it is probable t h a t most of such payments are included b y the firms making the returns. Because social services in Australia are not financed on the basis of tripartite contributions, the only contributions to social insurance funds would be of a voluntary nature ; deductions would only be made by employers with express authority from the employee, and such payments would naturally be classed as wages by the employing firm. Taxes deducted a t the source are included in the total of wages and salaries, but there is a specific note directing the exclusion of payroll tax which is payable by the employer. I n respect of allowances in kind and family allowances, it is open to doubt whether they are included, but there is no reason to think t h a t they are of any particular importance in Australian manufacturing industry. (See the preceding chapter for methods of estimating payments in kind for payroll tax purposes.) I n Canada, total salaries paid and total wages paid during the calendar year include the actual money wages paid, all bonuses, the value of room and board, where provided, deductions from employees for income tax and for social services such as sickness, accident, insurance, pensions, etc., as well as any other allowances forming part of the employee's wage or salary. I n the case of Ireland, figures on salaries exclude amounts drawn by proprietors of unincorporated concerns working in the business, but salaries paid to managing and other directors for working in the business should be included ; in the case of wages, the total amounts asked for distinguish between wage earners not outside piece-workers, and outside piece workers. Besides CENSUSES 51 these data referring to the whole year, the schedule asks for total earnings during the pay week ending nearest the middle of October, and for the aggregate number of hours actually worked during that same week ; for this part of the schedule, outside piece workers are excluded. A distribution of salaried employees and of wage earners according to classes of earnings is also called for. Under salaries and wages should be included all cash payments and bonuses received from the employer by the person employed, national health and unemployment insurance contributions payable by the employed person and deducted by the employer, and income tax and other taxes payable by the employed person to a public authority and deducted by the employer. In Southern Rhodesia, the annual payroll figure includes overtime, vacation and holiday pay ; it includes estimates for free food, rent, fuel, working clothes and company's products furnished in kind ; these estimates of the monetary value of payments in kind are made by the individual firms. Cost of living, family allowances and other bonuses earned and paid regularly are included. The instructions issued to firms do not cover deductions for damaged work ; commissions are not included in the figures. In the Union of South Africa, total wages and salaries paid to each one of the categories of workers mentioned above (European, natives, etc. ; managing directors, managers, etc.) are to be shown except that amounts drawn by working proprietors are not asked for. In the United States, wages and salaries are defined as the gross earnings of employees, including commissions, dismissal pay, nonproduction bonuses, vacation and sick leave pay, and compensation in kind, and prior to such deductions as employees' social security contributions, withholding taxes, group insurance, union dues, and savings bonds. Besides asking for total wages and salaries paid during the whole year, the wages and salaries earned during the pay period ending nearest 15 October are distinguished according to the length of the pay period used (weekly, bi-weekly, semi-monthly, and monthly). * * * In all countries, data on total payrolls are requested for the whole year, and not for a series of dates during the year. The only additional information asked for (more particularly in the case of Ireland and the United States) is for more detailed breakdowns of total wages and salaries paid during the pay period ending 52 WAGES AND PAYROLL STATISTICS nearest 15 October of each year. Gross wages and salaries are to be reported in all cases, and in all cases, also, overtime, bonuses, allowances, etc., are to be included, as are payments in kind ; as far as is known, estimates of the actual value of payments in kind are left to the individual employer in all cases. Cost-of-living bonuses would be included in all cases where such bonuses are actually paid, whereas the inclusion of family allowances would depend on the organisation of the family allowance scheme in the various countries. CHAPTER IV SOCIAL SECURITY STATISTICS The third important source of information on total payrolls, and sometimes on average earnings, is social security statistics. Social security schemes of one type or another are at present in force in most countries, and in practically all of those some information a t least on total wages and/or average earnings can be derived from their administration. I n a first group of countries, which includes amongst others Australia, Ireland and New Zealand, no information on total wages or average earnings can be obtained, since the contributions are a t a flat rate for each person. I n Ireland, for instance, contributions and benefits under the compulsory insurance schemes embodied in the Unemployment Insurance Acts, the National Health Insurance Acts, the Widows' and Orphans' Pensions Acts and the Insurance (Intermittent Unemployment) Act, are paid at flat rates, irrespective of rates of wages, and therefore no wage statistics based on these schemes are available. I n a second group of countries wage statistics, although possible, have not as yet been computed ; this group includes, inter alia, Canada, India, Norway, Portugal and the United Kingdom. I n France, no attempt has been made up to now to use the returns furnished by employers to the social security administration in order to gather information on total wages and salaries and on average earnings ; the law prescribes a maximum insurable wage, and any wage above t h a t maximum is not taken into consideration when computing the contribution to be paid by the individual concerned ; wages above t h a t maximum are therefore not included in the employers' returns ; information obtained on that basis would therefore be very incomplete, would be very late in becoming available and is no more reliable than the returns made by the employers at the end of each calendar year to the Ministry of Finance (see Chapter II). Information on wages derived from social insurance returns has recently become available for Belgium. 54 WAGES AND PAYROLL STATISTICS Costa Rica has a compulsory sickness-maternity scheme which applies to all workers below sixty-five years of age, in certain provinces ; the maximum insurable wage is 400 colons per month. Contributions are a fixed percentage of wages ; wage classes are not used. Returns are furnished monthly b y employers and contain information for each individual worker. Gross payrolls are reported, but in practice it has been found impossible to check the inclusion or otherwise of payments in kind. Monthly payrolls and average monthly earnings are now published once a month, with a timelag of approximately eight to ten weeks ; they are based on total payrolls of individual employers, whereas until recently the timelag in publication of figures based on individual workers was more than twelve months. A scheme of old-age, invalidity and death insurance also exists, with approximately the same coverage. I n Mexico, the Institute of Social Security administers a compulsory scheme of sickness, maternity, accident, invalidity, oldage and death insurance ; mining, manufacturing, commerce, transport and communications, and the professions are covered by the scheme ; the scheme was put into operation first in the Federal District of Mexico (July 1943) and was gradually extended to the other important industrial centres of the country (Puebla, Monterey, Guadalajara and Orizaba). By 31 December 1947, 365,664 workers were insured under the scheme (264,398 in t h e Federal District). The only information available so far on wages refers t o t h e number of workers distributed according to wage classes ; up to 1947, there were nine wage classes ranging from less than 1 peso a day to 12 pesos and more ; since then, the number of classes has been increased to eleven, ranging from wages of less than 2 pesos a day to wages of 22 pesos a day or more. Workers in agriculture, forestry, trapping and fishing, workers employed by the State and workers in family enterprises, as well as home workers and domestic servants, are excluded from the insurance field. There are no upper wage limits. The schedule used by employers to liquidate their contribution to the social security scheme calls, separately for each wage class, for the number of weeks of contribution, separately for sickness and maternity on the one hand, and invalidity, old age and death on the other ; it also calls for a list of the workers employed, giving for each worker the number of contribution weeks. Such schedules are filled out b y employers once every two months. From the distribution of workers according to wage classes it ought to be fairly easy to compute average earnings, but the results of SOCIAL SECURITY STATISTICS 55 such computations, if made, have apparently not been published as yet. The daily wages on which the wage classes are based are daily gross wages, and in cases where payments in kind occur, the cash wage is to be increased by 25 per cent, when board only is furnished, and by 50 per cent, when both board and lodging are furnished ; when a worker is away in the Armed Forces, neither the worker nor the employer pays contributions, the worker remaining insured, however, for fifty-six weeks from the date of his departure. Cost-of-living bonuses which are part of the wage are included, b u t family allowances, Christmas bonuses, commissions, etc., are not. Statistics of total wages and salaries and daily earnings are derived from accident insurance statistics in the Netherlands. Workers in agriculture, ocean navigation and fishing are not included in the scheme ; Governmental, municipal and similar workers are included only if employed in establishments covered by the Insurance Act (e.g., Government coal mines, printing establishments, shipyards, municipal works and public utility services) ; domestic servants are also excluded. Establishments report their payrolls twice a year, although a number of big establishments have been authorised to report once a year only. The schedule asks for data on individual workers : sex, date of birth, occupation, total earnings, and number of days worked, these two last items separately for each calendar week and per half year. Earnings figures are gross earnings prior to deductions for social insurance, wage tax, union dues, penalties, etc. Overtime, vacation and holiday pay, all bonuses, whether regular or not, and commissions are included ; half pay for part-time workers is also included, as also is the value of payments in kind (reported separately) ; value of board, lodging, housing accommodation, fuel, electricity, water, clothes, is estimated according to uniform official standards ; legal family allowances are not included, but family allowances paid voluntarily by the employer above the legal minimum are ; sick leave pay is included only for t h a t part which exceeds the legal minimum compensation. The total number of days worked asked for includes paid vacation days, holidays and half-pay days ; days spent on sick leave are excluded. The results are computed on the basis of the insured wage only ; maximum insured earnings of each worker were 8 florins per day during the period 1937-1946 ; this maximum was raised to 10 florins per day in 1947. Before the Second World War, it was estimated that earnings were in excess of insured wages by 5 per 56 WAGES AND PAYROLL STATISTICS cent, on an average ; in 1946, the difference is considered to have been much bigger, but even approximate figures on t h a t point are lacking. Earnings are published for eighteen major industrial branches in mining, manufacturing, construction, public utilities, plus a last group including commerce, transport, banking, insurance, the professions, etc. No averages are computed b y sex, age, occupation or region and the last year for which information is available at present is 1947. For the city of Panama, the social insurance fund provides figures on total wages and on average monthly earnings by industry and by sex. The returns on which these figures are based are sent jointly to the Social Security Administration and to the Ministry of Finance ; the schedule calls for a fist including each individual worker, his occupation, his sex, the total of his salary or wage, the number of months, of weeks, of days and the total number of hours worked, separately on normal time and on overtime. All workers whose wages are more t h a n 75 balboas per month, 2 balboas per day or 0.25 balboas per hour are included. The total wage or salary indicated for each worker includes payments in kind, bonuses, dividends, emoluments, etc. Information on total payrolls and average earnings is available in Switzerland, based on the accident insurance returns, but, whereas statistics of total payrolls are computed b y the insurance fund itself on the basis of the payrolls submitted to it by all establishments covered, the statistics on average earnings are based on information transmitted by the insurance fund to the Federal Bureau of Industry and Labour, and refer to the wages of workers who were victims of industrial accidents. The statistics of total payrolls and of average earnings are thus based on two completely different sets of returns. Agriculture, hotels and domestic servants are not covered by the insurance. For inclusion in the insurance scheme, an insured person's wage is counted up to 26 francs per day and 7,800 francs per year. This maximum was 21 francs from 1920 down to February 1945. Any wages in excess of these maxima are not included in the returns. Earnings of apprentices, trainees and family workers are also included. With regard to coverage, all workers and salaried employees of whatever age are included ; only employers and home workers are not covered. Workers who are sick, on strike or on holiday are taken into consideration only if they receive a t least 80 per cent. of their normal wage while they are away; persons working on commission are also included. In the computation of average earnings, SOCIAL SECURITY STATISTICS 57 on the other hand, only wage earners are taken into account ; average earnings are computed for the following categories : skilled and semi-skilled male workers eighteen years of age and over ; unskilled male workers eighteen years of age and over ; female workers eighteen years of age and over ; and, finally, juveniles. All establishments employing one person or more, even temporarily, are included in the insurance scheme. I t is estimated t h a t in 1941 approximately 65 per cent, of the workers employed in the fields covered by insurance were in fact insured ; on the other hand, for the computation of average earnings, it is estimated that in 1944 approximately 20 per cent, of the insured workers were represented. For the computation of total wages and salaries, the establishments hand in a return once a year. For the computation of average earnings, " declarations of accidents " filled in by the employer are transmitted by the insurance fund to the Federal Bureau of Industry and Labour. For the computation of total wages and salaries, wages include all payments in kind and all regular supplementary allowances such as piece work, overtime, payments for night work, clothing allowances, production bonuses, seniority allowances, profit-sharing, tips, participation in profits or percentage on sales, commissions and gratuities, etc.; costof-living bonuses, family allowances, children's allowances, winter bonuses, etc., are all included ; as from 1949, paid vacations and holidays are to be included, as well as the contributions to social insurance and taxes deducted at the source by the employer. On the other hand, wages paid during military service and wages paid to pensioners are not covered. In order to obtain the average earnings per unit of time, the total loss of wage incurred through the accident is taken into account, including cost-of-living bonuses, various benefits and other regular supplementary bonuses, but excluding overtime ; payments in kind are also included, and their value is estimated on the basis of the value which they have for the insured person and not on their cost to the employer. The returns made for each person who has been victim of an accident include, besides the wages of the insured person, his occupation, his industrial status, his industry, age, family status, date of accident, hours of work at time of accident, and geographical location. With regard to the computation of average earnings, for each individual industrial branch the average earnings for each category of workers are obtained by means of an unweighted arithmetical 58 WAGES AND PAYROLL STATISTICS average ; averages for the seventeen branches and for the total are obtained by weighting the average earnings of the individual industrial branches and of the various groups of workers (skilled and semi-skilled, unskilled, women, etc.). The number of " standard units " fixed by the insurance fund for the year 1938 are used as weights. Yearly figures are published b y industry, by category of workers, by sex, occupation, age, family status, b y canton, b y region (urban, semi-rural and rural) and for several individual towns. Figures on total payrolls are published after an interval of approximately eighteen months ; data on average earnings are published seven months after the end of the year to which they refer. Payrolls and average earnings statistics derived from social insurance in the United States are of two kinds : the first refers to the Old Age and Survivors' Insurance Program of the United States and the second refers to the combined Federal and State Unemployment Insurance Program. The Old Age and Survivors' Insurance Program is compulsory and requires both employers and workers in covered employment to provide information to the Bureau of Internal Revenue and to the Bureau of Old Age and Survivors' Insurance of the Social Security Administration. The coverage of the programme includes any services performed by a worker for an employer within the United States, including Alaska and Hawaii, or on an American vessel, except services specifically included in the Railroad Retirement Act and Carriers Taxation Act, or specifically excluded b y the Social Security Act and the Federal Insurance Contributions Act. The excluded employments consist mainly of agricultural employment, work for federal, State and local Governments, employment by non-profit organisations or institutions, railroad employment, domestic service in private homes and all types of self-employment. Wage earners, apprentices, salaried employees and supervisory staff are all included in the category of covered workers ; persons engaged in working on their own account, home workers and domestic servants are all excluded ; there are no age limitations, and the criteria are the same for workers of both sexes ; workers on sick leave, on strike or on vacation are covered, whereas persons performing military service are not. The returns filed by employers in covered employment include all persons having worked any part of the period. The only SOCIAL SECURITY STATISTICS 59 limitation on size of establishment is that the employer must have at least one worker in covered employment. I t is estimated that out of a total number of 71,000,000 persons employed at some time during 1945, 46,392,000 persons were covered by oldage and survivors' insurance ; the figures for 1946 were 75,000,000 for the total number of persons employed at any one time and 49,500,000 for the number of persons covered by old-age and survivors' insurance. The information is obtained from the quarterly tax returns which employers are required to prepare and submit to the Bureau of Internal Revenue ; that Bureau in turn transmits the returns to the Bureau of Old Age and Survivors' Insurance. The present contributions represent 1 per cent, of the employee's wages and an equal amount contributed by the employer. The schedule requires that every taxable earning of individuals shall be recorded ; in addition, the employer summarises the individual employee's earnings and shows the total taxable payroll figure. No figures are asked with respect to age, sex, degree of skill, occupation or industrial status. Age and sex data are obtained from the worker when he files his request for a social security account number. The earnings figures include overtime, vacation and holiday pay, workers' contributions to old-age, employment and health (individual or group) insurance, withholding tax, bonds, union dues, etc. ; they also include the value of earnings in kind, which are estimated on the basis of reasonable rates prevailing in the locality. The payroll includes payments to employees who are away in the Armed Forces, payments of bonuses, cost-of-living bonuses, commission, etc. ; it does not include payments to pensioners and family allowances. In addition to payrolls, the following items of information are also requested : State of employment, number of employees on the payroll ending nearest the middle of the last month of the calendar quarter, and total number of workers listed on the t a x return ; this last figure represents the total number of workers employed at any time in the calendar quarter. Information on the number of man-days or man-hours is not requested. Gross figures are used in the computation of average earnings. Average quarterly wages can be obtained directly from the employers' quarterly t a x returns ; in addition, it is possible to obtain the annual average wage for workers by summarising the wages reported b y all their employers for the year ; averages are computed on an aggregate basis by dividing the total wages by the 60 WAGES AND PAYROLL STATISTICS number of workers in a particular classification, such as age, race, sex, industry or State, since there is no distinction made between different contribution classes. Annual averages are subject to qualification because of the $3,000 limit on the annual wages received by a worker from any one employer in a calendar year ; this qualification is overcome by computing median wages. Tables showing a summary of wages, employment and benefit data are released after a time-lag of approximately six months. The series of annual tables showing workers' experience in the current year is released after a time-lag of approximately two to three years. In addition, each year a series of tables relating to business establishments, employment and payrolls for the first calendar quarter of the year is released after a time-lag of approximately two years. A very small sample of workers is tabulated each quarter in order to permit advance data to be obtained. Taxable wages include not only money, but the fair value of any other thing received by the employee from the employer in payment for work done, such as meals, lodging, clothing or merchandise ; taxable wages also include the following : wages paid to temporary or part-time employees, salaries or wages paid to oificers of corporations, wages paid to employees over the age of sixty-five years, commission paid to employees, meals furnished to employees of restaurants and hotels, or to seamen on American vessels, etc., bonuses, vacation allowances, wages paid by an individual employer to a son or daughter who is twenty-one years of age or more. Wages that are not taxable include amounts over and above the first $3,000 of wages paid to each employee by the same employer in any one calendar year ; compensation for services such as agricultural labour and certain kinds of domestic service, which are not covered by the Act ; dismissal payments which an employer is not legally required to make ; and tips paid directly to the employee by a customer of the employer, provided they are not accounted for by the employee to the employer. With regard to the Federal and State Unemployment Insurance Program, the Bureau of Employment Security of the Federal Security Agency has general supervision over the separate unemployment insurance programmes provided for by separate laws in the 48 States, the District of Colombia and the Territories of Alaska and Hawaii. Agricultural labour, casual labour, domestic service in private homes, service for certain members of SOCIAL SECTJEITY STATISTICS 61 families, service for State and federal Governments and service for non-profit institutions are, with minor exceptions, not covered; employment on inter-State railroads is covered by a separate programme. Employing units which have eight or more workers in covered employment for a total of twenty or more days during the calendar year, each day being in a different week, are subject to the Federal Unemployment Insurance Program. With regard to the State programmes, nineteen of them are the same, one has reduced the number of weeks to fifteen, two have wage qualifications which are slightly more inclusive, and the remainder (29) include part or all of the small firms not covered by the Federal Act ; the number of workers in the employing units in these remaining 29 States is as high as six or more workers in twenty weeks, and as low as one or more workers at any time. I n the statistics of the Unemployment Insurance Program, the term " wages " means all remuneration for employment, including the cash value of remuneration paid in any medium other than cash ; the term " taxable wages " means the portion of wages taxed for unemployment insurance purposes, which is the first $3,000 of wages paid by an employer to a worker for employment performed during the calendar year ; both taxable and total wage data are available for use in statistical studies. Wage earners, salaried employees, supervisory staff, apprentices and home workers are all covered if a legal relationship exists between employer and employee ; self-employed persons are not covered, because such a relationship does not exist. No distinction is made between male and female workers, nor is age a factor, except for minors who perform services for either or both parents ; persons under eighteen years of age engaged in the distribution of newspapers are not covered ; retired workers and pensioners are covered at such time as they enter covered employment. Workers on unpaid sick leave, on unpaid vacation, on strike or in military service are not counted as employed ; persons who have worked a part of the calendar quarter may or may not be included in the employment count, depending upon the length of their work, but any wages they earn during the quarter will be reported. Commission is to be included if it constitutes a part of wages. Tax returns are submitted by the employers to each State agency of the Unemployment Insurance Program. The schedule is divided into two parts, the first used for reporting total payrolls, etc., and the second containing the earnings of each worker em5 62 WAGES AND PAYROLL STATISTICS ployed. The schedule is submitted each calendar quarter and calls for the following information : employment on the payroll nearest the 15th of the month for each month of the quarter, total wages during the quarter, wages subject to taxation and total contributions plus any interest due ; in most instances the report also asks for the number of different people who were employed by the employer at any time during the particular quarter. The second part of the quarterly report is a list of the persons employed during the quarter, their names and social security numbers, and the taxable wages paid to persons who are subject to the payroll tax ; several State agencies also obtain the total wage paid to each person. Payroll figures include overtime and vacation pay and bonuses ; special payments such as employers' payments into special welfare funds or group health insurance are excluded. No elaborate computations of earnings are made by the Federal Administration at the present time, but average weekly wages for each quarter and the annual wage figures are obtained for internal purposes. The number of tables published and the amount of detail furnished vary widely from State to State. Some prepare various quarterly and annual studies of employment statistics. Others publish detailed tables b y industry of employment and payroll figures. Others still prepare wage studies by industry and/or geographical area. Over half of the State agencies are now working under a co-operative agreement with the Bureau of Labor Statistics of the United States Department of Labor and are issuing monthly releases on current employment, hours and earnings ; these States are using the unemployment insurance employment and wage data as benchmark data and are projecting estimates from the benchmarks by means of monthly information from a sample of establishments (see Chapter II). Employment and wage figures on a national basis are published quarterly and annually by the Bureau of Employment Security ; quarterly figures are released after a time-lag of usually seven months ; in the case of the annual figures the time-lag is approximately one year. These figures are used as benchmark material by various other federal and private agencies besides the U.S. Bureau of Labor Statistics, such as the National Income Division of the U.S. Department of Commerce and the National Association of Casualty Insurance Executives. * * SOCIAL SECURITY STATISTICS 63 Statistics of payrolls and average earnings derived from social security programmes are available for a certain number of other countries also (Belgium, Czechoslovakia, etc.). I t must be admitted, however, t h a t as a source of wage statistics, social insurance returns have a number of serious drawbacks ; in most cases there is a wage limit above which either the worker is not included at all, or the wage is not taken into consideration. Furthermore, given the very large numbers of persons covered, the results are likely to be published only after a very lengthy time-lag ; as an instance, the case of the Netherlands might be cited, where the latest information available on daily earnings refers to the year 1947, and where, owing to technical arrangements, no preliminary results based on a sample of returns can be obtained. The main usefulness of such wage statistics, therefore, would appear to be their value as benchmark data for wage statistics based on establishments reporting and also their value for total wages and salaries and national income statistics. Whatever their limitations, it should be strongly recommended that the information which can be derived from the administration of such schemes should be computed and published and used as a source of benchmark data for other wage statistics with a more restricted coverage and with, therefore, a shorter time-lag in publication. CHAPTER V ESTIMATES OF TOTAL WAGES AND SALARIES The present chapter contains a brief review of the methods followed by various countries to arrive at estimates of the amounts paid out each year in wages and salaries ; it does not deal with estimates of the total labour income which, besides total wages and salaries, include such transfer payments as unemployment compensation, sickness benefits, etc. The main points to be analysed under this heading are the various sources of information used, the methods of estimating the figures for branches of economic activity and categories of workers not covered by these sources, etc. I n Australia, estimates of the total wage bill are based primarily upon returns lodged under the Pay-roll Tax Assessment Act. The basic series includes all wages and salaries subject to payroll tax, including directors' fees; drawings by working proprietors are excluded. I t will be recalled that, with few exceptions, all branches of economic activity are covered and that all establishments paying £1,040 or more in wages and salaries per year have to make returns. The field to be covered by the estimate of the total wage bill is divided into three g r o u p s 1 : (1) Subject to payroll tax. (2) Commonwealth Government, with five subgroups : (a) factories, (b) construction, (c) railways, (d) post office, (e) others. (3) Private employees not subject t o payroll tax, with three subgroups : (a) rural, (b) household domestic, (c) others. For group (1) the total wage and salary bill is as recorded in the returns. I n general, for groups (2) and (3) the number of males plus 45 per cent, of the number of females is multiplied by an appropriate average earnings figure derived as follows : For group (2) (a) total payrolls are known. For group (2) (b) a constant amount of £440 per annum is assumed ; since the end of the war the number of workers in this group has been small. 1 war. A fourth group (" U.S and U.K. Governments ") has disappeared since the ESTIMATES OF TOTAL WAGES AND SALARIES 65 Por groups (2) (c) and (2) (d) the figure is derived from the Commonwealth budget. For group 2 (e) the total payrolls for State and local Government officials is divided by the total number of males plus 45 per cent, of the number of females. For groups (3) (a) and (3) (b) an arbitrary amount, based on the General Survey for 1942-1943, is assumed, and is varied on the basis of the variations in average earnings per equivalent male unit (males plus 45 per cent, of females) derived from payroll tax returns. For group (3) (c) the estimated number of workers, less 2 per cent, of males and 3 per cent, of females in employment recorded b y payroll tax returns (to allow for temporary loss of pay, etc.), is multiplied by an amount determined as in group (3) (a), but varied b y half instead of by the whole variation. Calculations are made monthly and are used to compute a seasonally adjusted index of average earnings for Australia as a whole ; absolute amounts are published for Australia and for each State once a quarter. The time-lag in publication is from seven to eight weeks from the end of the period covered. I n Canada, total salary and wage payments as reported by the annual census of industry are used wherever possible. Salaries and wages in agriculture for 1941 are based on decennial census data and are projected to other years on the trend indicated by sample surveys carried out by the Agricultural Branch of the Dominion Bureau of Statistics. Other cases where decennial census data are used as a basis include fishing and trapping, trade, and certain service industries. I n the case of trade, the payrolls index prepared b y the Employment Branch, Dominion Bureau of Statistics, has been available for projection since 1941 ; in other cases, less satisfactory information is available and projections are made on the basis of general indexes of employment and wages. Other sources of information used are the Canadian Bankers' Association reports, reports of the Superintendent of insurance, various provincial reports, the public accounts, etc. ; for municipal governments, the estimates are less satisfactory, being based on decennial census data for 1941 and projected on the experience of a sample of cities. Board and living allowances are estimated separately for industries where they are important, e.g., agriculture, logging, and domestic service ; in the case of agriculture, some information is available from the decennial census and from sample surveys ; in other cases, the estimates are based on rela- 66 WAGES AND PAYROLL STATISTICS tively arbitrary assumptions, both as to the numbers involved and as to the value of board. In order to arrive at estimates of total wages and salaries in the British Zone of Germany, it would be necessary to survey the wages of workers in agriculture and forestry and of salaried employees in the major economic branches. Such surveys have not yet been undertaken, but the necessary forms have been prepared, together with explanatory notes. They call for total salaries of certain categories of salaried employees, separately by sex, for employees in mining, manufacturing, construction, commerce, transport, banks and insurance. Other forms call for total wages of all workers, separately in agriculture and in forestry, for the financial year 1947-1948. In Ireland, figures for wages, salaries and pensions of persons with money incomes exceeding £150 per annun are shown separately and are supplied by the Revenue Commissioners ; for incomes in money and kind below £150 per annum, the figures are those resulting from the annual censuses of industrial production ; no adjustment is made, and a separate item, largely conjectural, is added to show total wages and salaries paid by establishments not covered by the censuses. Estimates for agriculture are derived from the 1936 census showing number of labourers and combined with the official statistics of agricultural wages. For Southern Bhodesia, information on total wages and salaries is based on returns from the compulsory workmen's compensation scheme. The Act covers all employees of all races whose earnings are less than £720 per annum, with the exception of domestic servants other than those employed in hotels and boarding houses, out-workers and other classes usually exempted ; civil servants are also excluded from the operation of the Act. The schedule calls for the total amount of wages paid to each class of occupation (such classes relating to the degree of industrial risk). For national income purposes, the totals received in salaries and wages of £720 per annum and under are completed with estimates of total earnings of civil servants (based on civil service estimates), and of earnings of persons receiving more than £720 per annum (based on income tax statistics). No other adjustments are introduced. In Sweden, the Central Statistical Bureau compiles yearly statistics of tax assessments and income distribution by industries. These include estimates of the aggregate earnings of civil servants and casual workers as well as the aggregate and average ESTIMATES OF TOTAL WAGES AND SALABIES 67 incomes of employed persons (wage earners and salaried employees) in various industrial groups. I n the United Kingdom, estimates of the aggregate earnings of various classes of employed persons are made by the Central Statistical Office, with the assistance of other Government departments, and are given in the annual White Paper, " National Income and Expenditure of the United Kingdom ". The estimates show separately total " salaries " and total " wages ". The latter item only is analysed into about fifteen to twenty industrial groups, for the majority of which quarterly estimates of wages are given. The remuneration of employers, working proprietors, etc., and professional earnings are excluded from the wage and salary bills and are included in the White Paper under the heading " Interests and Profits ". The estimate of total earnings (i.e., wages plus salaries) is provided by the Commissioners of Inland Revenue from their income tax statistics. Under the " Pay-As-You-Earn " system the income t a x on employees' earnings is deducted by the employers, and in this connection all employers have to provide returns of their employees' total remuneration (including bonuses, etc.). As will be seen below, a separate estimate can be made of the total wages bill ; the data on levels of salary in the different industries are at present insufficient to make an independent estimate of total salaries ; the total salary bill given in the White Paper is therefore taken to be total earnings estimates derived from income t a x sources less the estimated wage bill, i.e., it is merely a residual item. The basic data used in the derivation of the estimated wage bill are : (a) an annual count of the number of persons insured under the unemployment insurance system, analysed by sex, age and industry. By subtraction of the numbers registered as unemployed, these statistics yield an annual figure (for July of each year) of the number of insured persons employed. From March 1949 on, the annual count of insured persons in each industry, etc., has been replaced by quarterly sample estimates ; (b) monthly returns from employers in a majority of industries showing month to month changes in the level of employment. The statistics derived from these returns are used in conjunction with the annual figures described in (a) above to provide monthly figures of the number of insured employed persons in each indus- 68 WAGES AND PAYROLL STATISTICS try. These monthly returns separate numbers employed into wage earners and salary earners ; (c) statistics of average weekly earnings (including bonuses) of wage earners. I n the case of manufacturing industry and certain other industries, such data are published for two weeks in the year (one in April and one in October) with an analysis by sex and by industry. Broadly speaking, data under (a) and (b) provide statistics of employment of males and females in each industry, (b) gives the ratio of wage earners to the total number of employed persons for each sex in each industry, and (c) gives average earnings per wage earner. These sources therefore provide an estimate of total wages in each industry. The following refinements, however, are introduced : (1) Certain categories of persons have in the past been exempted from the unemployment insurance scheme (e.g., males over sixty-five years of age, females over sixty ye ars of age, nonmanual workers earning over £420 per annum, certain permanent employees of the Government and of local authorities, etc., and private indoor domestic servants). An addition to the figures of insured employed has had to be made in respect of these persons. Under the new national insurance scheme, which came into effect on 5 July 1948, all these categories of persons will, in future, be covered and no correction will be required. (2) A deduction has to be made from the estimates of numbers employed on account of absence due to sickness ; this is because' the figures of earnings refer to the average earnings of those in receipt of wages in the particular week chosen, and do not refer to the average earnings of all those " on the books ". A similar deduction is made on account of absence due to strikes ; this deduction is based on Ministry of Labour figures of numbers of working days lost in the different industries. (3) The Ministry of Labour's figures of earnings give average earnings at two dates in the year ; for intervening months the average wages earned in the different industries are interpolated by means of wage rate indices compiled by the Ministry of Labour. These indices take account only of changes in wage rates and do not cover changes in earnings arising from alterations in standard hours of work or from changes in amount of overtime worked. ESTIMATES OF TOTAL "WAGES AND SALARIES 69 (4) An addition to cash earnings has to be made for allowances in kind ; this applies, for instance, to domestic service and coal mining. (5) The basic data described above relate only to Great Britain ; the estimated wage bill for each industry group in Great Britain is therefore multiplied b y a factor based on the ratio of the number of insured employed persons in the United Kingdom to the corresponding number in Great Britain. I n addition to the adjustments just described, there are deficiencies in the basic data for certain non-manufacturing industries. I n many cases alternative sources of information are available and special methods are then employed ; where alternative data are not available a reasonable guess has to be made. Examples are given below. (a) The monthly returns on employment from a sample of establishments are made only in manufacturing industry, and hence in non-manufacturing industry the proportions of salary earners and of wage earners have to be estimated from alternative sources. The definitions of wage earner and salaried employee are then adjusted to bring them into line with the alternative source of information ; thus, in several cases where statistics of employment analysed between " clerical " and " operative " grades are available (e.g., for electricity and railways), the ratio of salary earners to wage earners is assumed to be t h a t of clerical workers to operatives. I n other industries where no other data are available (e.g., shipping, distribution) the different occupations identified in each industry in the 1931 census of population are classified arbitrarily as salary and wage earning, and the ratio in each industry of salary earners to wage earners is calculated from the 1931 census figures of numbers of persons in the different occupational categories. (b) The Ministry of Labour's figures of earnings do not extend to all non-manufacturing industries (e.g., they omit distribution, commerce, railways, coal mining, domestic service, etc.). I n such cases estimates of weekly earnings have to be made from other sources, e.g., Ministry of Transport returns of earnings of various grades of railway workers, National Coal Board returns of earnings of coal miners. Where no other information is available estimates are frequently based on minimum statutory wage rates or on wage rates agreed between trade unions and employers. 70 WAGES AND PAYBOLL STATISTICS (c) Estimates of wages and salaries in (i) certain branches of central and local government service and in (ii) agriculture and forestry are made as completely separate calculations. Statistics of average earnings in Government industrial establishments are included in the returns of earnings of the Ministry of Labour. For other central government employees, estimates of numbers employed and of average earnings are compiled from Treasury returns and from the Civil and Defence Estimates. Estimates for the Post Office are similarly derived. Estimates for certain classes of local government employees are also given in the general earnings statistics obtained by the Ministry of Labour. Rough estimates must be made for other classes for which no firm data exist. Estimates of agricultural earnings are based on sample surveys periodically undertaken by the Ministry of Agriculture and Fisheries. So much for the total wage bill ; with regard to the estimate of the salary bill, the numbers of salary earners in several industries can be estimated from the unemployment insurance returns and from the monthly returns from employers ; but except in a few special industries, e.g., Government service, no figures of salary levels are available, since the Ministry of Labour's statistics of earnings relate only to wage earners. The nearest approach to an enquiry on salary levels was a private investigation carried out in November 1946 by the Office Management Association ; their enquiry was, however, confined to clerical personnel, excluding administrative and managerial personnel, and, moreover, the information is now out of date. The most recent census of production was in 1935, though the results of a partial census (i.e., covering certain industries only) relating to the calendar year 1946 are now becoming available. The next complete census of production will relate to 1948. The first census of distribution to be held in the United Kingdom will relate to 1950. Voluntary enquiries into total wages paid (but not salaries paid) were made in connection with the 1935 census of production, but only about two thirds of the wage earners in manufacturing industry were covered. I n the 1946 partial census and in future censuses of production, compulsory returns of total wages paid and total salaries paid have been, or will be, given. Small establishments will not, however, make these returns, and estimates (based on employment) will have to be made in respect of them. I t is envisaged t h a t the census of distribution will provide ESTIMATES OF TOTAL WAGES AND SALAMES 71 estimates of total earnings (wages and salaries) in the distributive and service industries. The censuses of production and distribution will, however, still cover only a portion of total earnings, since they will omit agriculture, central and local government service and, in the first instance, several service industries, notably transport, entertainment and finance. In the United States, the sources of information used to compile the annual total wage and salary estimates are social insurance statistics (old-age and survivors' insurance, railway retirement programme and unemployment insurance) and statistics of establishments. Since 1939, social insurance statistics, with minor exceptions, have been used to provide estimates of total wages and salaries in most industries ; prior to that time it was necessary to rely upon periodic censuses of establishments data to establish levels of total earnings for particular years and upon sample statistics of establishments to carry this benchmark data forward. The industries for which data are published are agriculture, mining, manufacturing, construction, trade, transportation, communications and public utilities, finance, service and Government. Separate data for salaried employees and wage earners are not available for each group. The earnings of managers are included in the estimates, but the earnings of directors, working proprietors and other self-employed persons are excluded. The figures include payments in kind (for example, in agriculture and for domestics in private households) and tips (for example, in restaurants and taxicab operation). The estimates have therefore been defined as including the monetary remuneration commonly regarded as wages and salaries, including executives' compensation, commission, tips, bonuses and payments in kind, which represent income to the recipient. The social insurance data include all private industries with the exception of agriculture, servants in private households and some non-profit religious, charitable and educational institutions. No adjustment is required for the data published by the Railroad Retirement Board. I t is necessary, however, to make adjustments to the other major source of information, the old-age and survivors' insurance statistics, to correct for wage limitations ; the old-age and survivors' insurance statistics report the aggregate amount of taxable payrolls ; for each employee, taxable pay is the first $3,000 earned during a calendar year from each employer for whom he works. I t is therefore necessary to adjust these data for earnings above $3,000 ; data obtained from State unemployment compen- 72 WAGES AND PAYROLL STATISTICS sation agencies in connection with the administration of unemployment insurance are utilised for this purpose ; these agencies secure data for both taxable and non-taxable earnings from establishments covered by their programmes. The addition of nontaxable payrolls of establishments reporting to the State unemployment insurance agencies to taxable payrolls covered b y old-age and survivors' insurance provides a figure for wages and salaries in covered employment which is complete except for non-taxable payrolls in employment not covered by unemployment compensation laws. This employment in the main consists of employment by firms too small to be subject to unemployment compensation laws (the State laws vary from coverage of employers having one or more to employers having eight or more employees). Non-taxable payrolls for this group are estimated on the assumption t h a t the ratio of non-taxable to taxable wages is 46 per cent, as great as the corresponding ratio for firms covered by unemployment compensation laws ; this ratio is based on a special sample study for 1943. Farm payrolls are eliminated throughout, because it is desired to treat farming in its entirety as a non-covered industry. Estimates of payrolls in non-covered industries, primarily employment in agriculture, domestic service and religious, charitable and educational institutions, and in Government, are based on a variety of sources. Payroll estimates for agriculture and for State and local governments are based on periodic censuses of establishments and have been extended by sample statistical studies of establishments. The data for wages and salaries are published annually after a time-lag of seven months between publication of the data and the period to which they refer. Monthly and quarterly estimates of payrolls for only broad industry groups are also published after a time-lag of approximately one month. # * * The analysis in Chapter I I has shown t h a t a good many countries compute and publish payroll index numbers ; these series are usually based on a sample of establishments and can be published each month, each quarter, or each year ; the advantage of such series is t h a t they are published with a minimum time-lag ; their drawback is obvious : since they are based on a sample of large establishments there is no guarantee t h a t they measure accurately ESTIMATES OF TOTAL WAGES AND SALARIES 73 the trends and variations of the total wage and salary bill in the nation. From the moment it is desired to publish figures on total wages and salaries, other methods have to be used. These methods vary widely in the different countries, owing to the widely different character of the statistical series used as sources. The United Kingdom and the United States are examples of the use of basically different methods to arrive at estimates of total wages and salaries. Whereas the United Kingdom builds up estimates on the basis of information on average earnings per worker on the one hand, and on the number of persons in employment on the other, the United States bases its estimates on old-age insurance returns brought up to date b y means of the results of statistics covering a sample of establishments. Australia combines both methods by adding estimates based on average earnings and employment figures to payroll t a x figures. I t is difficult to have a definite preference for one or the other method ; it must nevertheless be admitted t h a t the method by which a complete census of total payrolls and salaries is furnished by social insurance returns and brought up to date by statistics of establishments appears safer than estimates built up from the ground, so to speak, and using figures on average earnings per worker in various fields as raw material. The need to adjust such estimates to benchmark data has been felt in the United Kingdom, and questions on total payrolls have been introduced in the schedules of the censuses of production and of distribution to be carried out in the near future. CHAPTER VI SOCIAL CHARGES I n the last three chapters an attempt has been made to clarify the term " wage " as it is used in the statistics of the various countries, and to determine the various elements of pay which are included in the figures of the gross amounts of wages entered on the payroll of each worker prior to any deduction. There is, however, still another concept, t h a t of labour costs, which is of importance from the point of view both of employers and also of the competitive position of countries in international trade. I n Chapter I the fact was recalled t h a t the first Conference convened in 1929 by the Social Science Research Council tried to define the wage concept from several points of view, one of which was t h a t of the labour cost per unit of production. I n a document submitted by the Office to the Fourth International Conference of Labour Statisticians (Geneva, 20-23 May 1931) the scope of the items included in the term " wages " was discussed ; it was pointed out t h a t workers' social insurance contributions are always included in the wage, i.e., the wage figures obtained are those before deduction by the employer of the worker's share of social insurance charges. The document also pointed out t h a t as regards the payments made by employers there had been considerable differences of opinion, but t h a t there was no doubt t h a t such payments should be included in any statistics in which attempts were made to compare the cost of labour in different countries. The further point was made t h a t it was impossible to obtain comparable information on the amount of the contributions paid by the State and local authorities per adult male or per married worker ; even in respect of employers' contributions, information was very difficult to obtain. The fact was recalled t h a t an attempt had been made by the Office in J a n u a r y 1931 to obtain some information as to the amount of such contributions, and Governments had been asked to indicate, for a list of thirty occupations, the weekly amounts paid by employers in respect of social insurance charges ; the information received had been very meagre SOCIAL CHARGES 75 and it had been impossible to take into account such fragmentary replies. The Office document also pointed out t h a t current (1931) wage statistics made no allowance for holidays with pay, but t h a t this factor was of rather minor importance and could be disregarded when attempting to make international comparisons of the real purchasing power of wages. The tables appended to the Office document showed t h a t employers' contributions to social insurance schemes for workers in various occupations varied between 0.5 and 1.2 per cent, in Spain, between 3 and 5 per cent, in France, between 1.5 and 3 per cent, in Ireland, between 3.5 and 12 per cent, in the Netherlands, between 0.5 and 6 per cent, in Sweden, and between 6.6 and 7.8 per cent, in Germany ; they amounted to 2.2 per cent. in Great Britain (excluding accident insurance). The Conference discussed the question of contributions to compulsory and voluntary schemes of social insurance ; such contributions consist of payments by workers, by employers and by the community. As regards workers' contributions, there was general agreement t h a t such payments should be included in the workers' wages ; as regards the other two, though these payments are for the benefit of the worker, he does not actually receive benefits as part of his weekly wage and if he is not sick, injured or unemployed he may never receive any benefits at all. As regards voluntary payments of this nature (charitable societies, welfare schemes, etc.) no comparable information was available. The Conference considered t h a t such information as to social charges as might be available, especially on the compulsory contributions of employers, should be collected and published by the Office and should be taken into consideration where comparable data are furnished. The Conference accordingly adopted the following recommendation on this point : In any statistics which may in future be compiled by the International Labour Office as to the relative purchasing power of wages in different countries, account should be taken of the diverse circumstances and conditions of the workers in different countries resulting, for example, from differences : (a) in systems of wage payments ; (b) in the nature and amount of payments supplementary to wages, such as family allowances and paid holidays, and (c) in systems of social insurance. Alternative series of index numbers (of the relative purchasing power of wages in various countries) should be so far as possible computed to show the effect of the inclusion or exclusion of such items. A further attempt to gather information on the elements of remuneration other than wages was undertaken by the Office 76 WAGES AND PAYROLL STATISTICS in conjunction with the October 1932 enquiry into the wages and normal hours of work of a list of thirty occupations and into the retail prices of a list of foodstuffs. Information obtained related to family allowances, holidays and vacations with pay, and workers' and employers' contributions to compulsory social insurance schemes. Family allowances applied to a family composed of husband, wife and two children ; holidays and vacations granted were expressed in terms of number of days paid for, separately for holidays and for vacations ; workers' and employers' contributions were expressed in national currency per week or as a percentage of wages. In the last part of the report on the October 1932 enquiry 1 , the Office attempted to combine the various elements of information gathered by adding the following to wages as such : family allowances, t h e monetary equivalent of holidays and vacations with pay, and the employers' contributions to compulsory social insurance schemes, in order to arrive at an approximate figure of the total cost of labour, on a per hour basis in some cases and on a per normal week basis in others. In a document submitted to the first session of the Committee of Statistical Experts of the International Labour Office (Geneva, 12-15 December 1933), the Office attempted to estimate the relative importance of factors other t h a n wages in the remuneration of a specific occupation, namely, fitters and turners. By adding to money wages per hour the amount of family allowances, of holidays with pay and of employers' social insurance contributions, the difference between money wages and total labour cost was estimated to vary between 1.2 per cent, in Dublin and 33 per cent, in Tallinn (Estonia), being 10 per cent, for Berlin, 7 per cent. for Vienna, 2 per cent, for Ottawa, 9 per cent, for Paris, 2.5 per cent, for London, 4 per cent, for Oslo, 9 per cent, for Amsterdam, 4 per cent, for Stockholm, etc. The Committee of Statistical Experts adopted the following resolution on statistics of elements of remuneration other t h a n wages : The Committee, having examined the results of the latest enquiry into elements of remuneration other than wages (family allowances, paid holidays, employers' and workers' contributions to compulsory social insurances) carried out by the Office in conformity with the resolutions of the Fourth International Conference of Labour Statisticians, 1 International Labour Review, Vol. XXVTII, No. 2, Aug. 1933, p . 265. SOCIAL CHABGES 77 as a complement to other enquiries into wages, makes the following recommendations : (1) in order that the results of such enquiries may serve really useful purposes, particularly in contributing towards a complete explanation of the data relating to wages, it is desirable that the national statistical services of all the countries which collaborate in the annual enquiry into wages should be able to supply more complete information on these elements of remuneration, and should furnish more exact information as to the sources, character and scope of the figures, so as to enable the portion which these different factors form of the total remuneration of the workers, to be evaluated ; (2) the Omce should continue its work with a view to elaborating methods appropriate for arriving at such evaluations, taking into consideration the different hypotheses which may be adopted in this respect ; (3) in view of the nature of these different elements and the lack of adequate information, it is not essential that the simultaneous calculation of several index numbers of wages, showing the effect of including or excluding these factors, should be repeated each year. It will be sufficient to recall, in the analysis dealing with the wages tabulation, the general character of the supplementary remuneration of this kind existing in each country, and periodically to revise the available information and these calculations by special enquiries at intervals of some years. The only other enquiry carried out by the Office in this field was the one dealing with coal mining. I n this enquiry 1 , miners. earnings were broken down, and net money wages, workers' social insurance contributions, allowances in cash, allowances in kind (free and cheap coal, and others) and payments for hohdays were shown ; employers' contributions to social insurance were also shown, in order to arrive at total labour costs for the years 1933, 1935 and 1936. Figures shown were total amounts per year for the whole country. During the past ten years, the question of statistics on the elements of remuneration other than wages has gained in importance. As seen in preceding chapters, payments for hohdays and vacations are now usually included in the data on wages published b y the different countries. With regard to family allowances, the inclusion of this item in the published figures depends on whether the family allowances scheme of the given country is based on benefits paid through employers or on benefits paid directly b y the State ; there is no uniformity in the legislation of the various countries in this field, and the conclusion reached 1 1 . L . O . : The World Coal-Mining No. 31, 2 vols. (Geneva, 1938). 6 Industry, Studies and Reports, Series B, 78 WAGES AND PAYROLL STATISTICS in Chapter I I was t h a t it is desirable to have information on this point for as many countries as possible, but t h a t such information, if derived from payroll statistics, should be shown separately and not combined with wage figures. So much for payments for holidays and vacations and for family allowances. With these two elements of the remuneration of the workers out of the way, the cost of labour aspect of payroll statistics comes to the fore, and the additional sums paid by employers on account of employing workers have become known as social charges, or " wage fringes ". This question is of great importance to employers and Governments alike, since labour costs (per hour or per unit of production) will determine in a large measure the competitive position of an individual employer and t h e competitive position of a given country for the products entering international trade. A review of the current information available in the different countries shows the following facts. I n Belgium, the Social Security Act came into force on 1 J a n u ary 1945. Contributions due for wages and salaries up t o 4,000 francs are as follows : Per cent. Contributions of wage earners Contributions of salaried employees. . . . Employers' contributions for their wage earners Employers' contributions for their salaried employees 8.00 8.25 15.50 15.25 Employers' contributions are subdivided amongst the various schemes as follows : For wage earners : 3.50 2.50 1.00 6.00 2.50 per cent, for old age ; „ „ for sickness and invalidity ; „ „ for unemployment ; „ „ for family allowances ; „ „ for holidays with pay. For salaried employees : 6.00 2.25 1.00 6.00 per cent, for old age ; „ „ for sickness and invalidity ; „ „ for unemployment ; ,, „ for family allowances. Since 15 November 1945, employers have an additional contribution to pay, i.e., to the National Fund for the Re-equipment SOCIAL CHARGES 79 of Workers' Households ; the employers' contribution to this fund is 1.5 per cent, of the wages and salaries u p to a maximum wage or salary of 4,000 francs per month. Since 14 J u n e 1948, payments for vacations have been doubled and employer's contributions have increased to 2.5. per cent, for wages where a ceiling is applicable and to 5 per cent, for wages where no ceiling applies. Contributions to workmen's compensation are in addition. Employers' contributions vary with the class of risk ; on an average, they are estimated a t 3.40 per cent, for wage earners and 0.90 per cent, for salaried employees. The Act of 6 July 1948 provides t h a t the special bonuses previously paid to workers receiving low salaries to compensate for the increased cost of living are to be integrated in the basic wage by the addition of 0.50 francs per hour for wages and 100 francs per month for salaries. This change has been estimated to represent an increase of 3.66 per cent, on average. Besides the vacations of six days paid at twice the normal salary, the law provides for the payment of holidays falling during the week, up to a maximum of ten days per year ; this is estimated as an additional 4.20 per cent. The employers' contributions are thus brought up to a total of 30.76 per cent, for wage earners and 23.17 per cent, for salaried employees. These figures do not take into account the various ceilings applicable to the different schemes of social security ; if these are brought into the picture, social charges paid by employers, as defined above, are estimated to amount to 30 per cent, in the case of wages and 20 per cent, in the case of salaries. 1 I n the spring of 1948, a tripartite committee on statistics of wages and cost of living was set up in Belgium. This Committee has now recommended t h a t the following series of index numbers should be computed and published : (a) average hourly straighttime earnings ; (b) average gross earnings ; (c) average net earnings ; and (d) " real cost of wages ". The real cost of wages is the average earnings figure to which social charges and taxes of all kinds paid by employers have been added ; these charges may be imposed by legislation, by decisions of joint committees or by collective agreements, or may be merely customary 1 Revue pratique des questions commerciales et économiques, Mar. 1949, p. 24. 80 WAGES AND PAYROLL STATISTICS (in which case they are included only if recognised by trade union organisations).1 In France, the Employers' Association of Electrical Machinery Manufacturers in the region of Paris undertakes monthly enquiries into the average gross hourly earnings of their workers and into the social charges of employers. The two index numbers (based on 1938 = 100) are as follows 2 : Average hourly gross earnings plus social charges Average hourlygross earnings Year 1938 1945 1946 1947 1948 100 283 407 596 882 100 325 468 695 1,038 Another enquiry is undertaken by the Group of the Metal, Mechanical and Affiliated Industries of the region of Paris. Estimates of employers' compulsory contributions to various social s e c u r i t y s c h e m e s (in p e r cent, of gross wages) a r e a s follows 1938 Oct. Scheme Workmen's compensation Family allowances Social insurance Apprenticeship t a x Paid days of unemployment . . 1948 4th quarter 3.00 3.20 4.00 4.6S 0.20 6.50 12.00 10.00 6.70 0.20 0.41 5.42 15.12 9.45 6.50 0.20 0.10 4.70 3.06 15.09 35.81 44.55 Travel indemnity Total : 1947 Oct. . 1 | 3 The French Ministry of Labour, as part of its quarterly enquiry into the employment, wages and hours of work of about six million workers, has asked for information on social charges paid by 1 3 8 Revue du travail, Mar. 1949. Journal de la Société de statistique de Paris, May-June 1949, passim. Bulletin de la statistique générale de la France, Supplement, Oot.-Deo. 1948, p. 312. SOCIAL CHARGES 81 employers during 1946 and 1948. The results of the 1946 enquiry are summarised in the following table 1 : FRANCE : COMPULSORY SOCIAL CHARGES IN 1946 BY INDUSTRIES (percentages of total payrolls) ApprenSocial Family Paid surance allowances vacations ticeship tax Workmen's compensation Total Food Chemicals. . . . Rubber Paper, cardboard Printing . . . . Textiles . . . . Clothing . . . . Leather and skin Wood Metallurgy . . . Mechanical engineering . . Jewellery, etc. . Stone Building, construction. . Ceramics, etc.. . 8.63 8.24 8.18 8.66 8.01 9.19 8.82 9.20 8.95 9.09 9.65 9.24 9.29 9.39 8.36 9.70 9.07 9.34 10.01 10.02 4.42 4.67 4.53 4.58 4.51 4.39 4.54 4.66 4.82 4.78 0.08 0.05 0.04 0.06 0.03 0.04 0.06 0.08 0.05 0.02 4.02 3.64 3.69 3.61 1.90 1.92 1.64 2.71 7.53 3.41 26.80 25.84 25.73 26.30 22.81 25.24 24.13 25.99 31.36 27.32 9.04 7.87 9.09 9.61 8.99 10.03 4.94 4.50 4.91 0.05 0.05 0.06 4.33 1.84 5.90 27.97 23.25 29.99 9.01 9.05 10.09 9.76 5.40 4.67 0.06 0.05 9.21 4.30 33.77 27.83 Total. . . . 8.93 9.62 4.75 0.05 4.32 27.67 . . 9.11 8.62 9.48 8.90 4.63 4.51 0.06 0.05 6.20 2.71 29.48 24.79 . . 7.13 8.78 7.31 8.96 4.49 4.60 0.02 0.02 1.00 2.02 19.95 24.38 Grand total. . 8.81 9.39 4.68 0.05 3.84 26.77 Road transport Commerce . . Banking, insurance. . Professions . . . Besides these compulsory charges, information was obtained on the following voluntary charges : supplements to benefits paid by social insurance schemes and family allowance schemes (including employers' contributions to private pensions funds) ; medical and social services (infirmary, wages of socialVorkers, etc.) ; vocational training ; canteens and co-operatives ; children's holiday camps, kindergartens, etc. ; workers' settlements (repair and amortisation only) and gardens ; sports and cultural expenses (libraries, etc.). Such voluntary charges varied between 0.20 per cent, of the total payroll of all reporting establishments (in stone works) and 6.34 1 Revue française du travail, Nov. Z947, p. 1018. 82 WAGES AND PAYROLL STATISTICS per cent, (in metallurgy) ; the average for manufacturing and building was 2.06 per cent., bringing the total of compulsory and voluntary charges u p to 29.73 per cent. The enquiry covering the year 1948 was held in April 1949 ; t h e questions asked were as follows : III. AGGREGATE AMOUNTS OF WAGES AND SOCIAL CHARGES ÏOR THE YEAR 1948 (a) Amounts of Wages Disbursed by the Employer 18. Aggregate amount of net wages paid to all employees after deduction of workers' taxes, workers' contributions to social insurance and excluding bonuses and allowances described below 19. Aggregate amount of bonuses and allowances in cash or in kind (overtime, production bonuses, attendance bonuses, lunch allowances, Christmas bonuses, etc.) 20. Workers' contributions to social insurance . . . 21. Deductions for wage tax 22. Amounts of lump sum t a x of 5 per cent. . . . 23. Aggregate amount of gross wages (18+19+20+21+22) (b) Amounts of Social Charges Paid during the Year lß48 Social charges paid by establishment 24. Employers' contributions to social insurance 1 25. Contributions to family allowances funds 1 26. Contributions to workmen's compensation funds 27. Paid vacations and holidays (1 May) 28. Medical services 2 29. Social services a 30. Apprenticeship tax 31. Canteens and co-operatives . 32. Vocational training, appren- . ticeship, etc 33. Holiday camps, kindergartens, etc 34. Workers' settlements, gardens, sports, cultural expenses. . . 36. Other social charges 3 . . . . 36. Total 1 2 3 Excluding voluntary payments, if any. Compulsory and voluntary payments. Including voluntary payments. Amounts Amounts paid directly transferred to by employer works council Total 83 SOCIAL CHARGES I n Italy, the General Confederation of Industries publishes the results of monthly enquiries into the compulsory contributions paid by employers to various social security schemes. The results are summarised in the following figures (expressed as a percentage of gross wages) x : Year 1938 1947 1948 1949 : I II Ill IV V Wage earners Salaried employees 10.33 29.09 30.21 34.75 34.75 34.72 35.87 35.87 17.49 18.08 20.96 20.90 20.87 22.01 22.01 _ The following payments are included in the above figures : old-age and invalidity insurance ; unemployment insurance ; tuberculosis insurance ; marriage and birth insurance ; sickness insurance ; workmen's compensation ; family allowances ; social solidarity fund. 2 I n the Netherlands, an estimate of social charges paid in the metal industry in 1948 and communicated to the I.L.O. by the Federation of Employers in the Metal Industry is as follows : Percentage Sickness insurance Accident insurance Invalidity insurance Family allowances Sickness fund Adjustment charge Establishment pension fund Paid holidays and vacations Special holiday allowances Cost of short-term sickness Total 3 3 to 5.2 1.3 6 1.9 4.5 2 6 2 1.5 31.2 to 33.4 1 Rassegna di Statistiche del Lavoro, July-Aug. 1949, p . 325. For a list of sources on social charges in Italy, see op. cit., No. 5, Nov. 1948, p . 198 and No. 1, Jan.-Feb. 1949, p . 37. 2 I n a study published a t the end of 1948, the General Confederation of Italian Industries arrived a t the following estimates of social charges paid by employers in various countries (in percentage of wages) : Belgium, 17.0; France, 24.6; Italy, 34.7 ; United Kingdom, 3.6. These charges cover the following insurance schemes (where applicable) : invalidity, old age and death ; sickness ; maternity ; unemployment ; industrial injuries and occupational diseases ; and family allowances (cf. Rassegna di Statistiche del Lavoro, Nov. 1948, p . 184). 84 WAGES AND PAYROLL STATISTICS Only fragmentary information is available on the subject of social charges for the United States. Some of the extra charges paid by employers are described as follows in a publication of the U.S. Chamber of Commerce : A growing number of companies have adopted supplementary private pension plans. For many years employers have carried life insurance on their employees, usually in modest proportions, employers paying the premium, unless the worker desired additional insurance ; in addition, many employers pay death benefits not covered by insurance. Group insurance and paid sick leave plans continue to be a major issue in collective bargaining . . . but the number of (such) plans incorporated into union contracts is limited.1 Non-production bonuses are paid in a good many cases ; these include Christmas bonuses, profit-sharing bonuses, etc. I n addition, many companies subsidise plants' cafeterias, pay transportation costs and provide recreational facilities for their workers. A private study of thirty large companies covering many different industries revealed that the average cost in 1946 of a list of compulsory and voluntary benefits was over 13 per cent, of payroll, although in 13 per cent, of the cases the figure was over 20 per cent. I t is estimated that employers' compulsory contributions to : (a) workmen's compensation for industrial accidents and diseases ; (b) non-occupational disability in three States and in the case of railroads ; (c) unemployment compensation ; and (d) old-age and survivors' insurance amount to 8.5 per cent, of total payrolls.2 I n conclusion, it can be stated t h a t statistical information on social charges, except in a few countries, is at best incomplete, and often simply unavailable. Some information on the subject could be obtained by an examination of the legislative texts and regulations in each case, but the results would obviously not be very satisfactory. I t is strongly to be recommended, therefore, t h a t payroll statistics based on establishment reporting should be supplemented at suitable intervals, and preferably once a year, by information on social charges. As a minimum, this information should cover the compulsory contributions paid by employers to social security schemes ; wherever possible, information should be gathered, in addition, on payments made voluntarily b y employers. A paragraph along these lines is included in the draft resolutions to be found in Chapter V I I I . 1 2 American Economic Security, Ibid., p . 21. Oct.-Nov. 1948, p . 17. CHAPTER VII CONVENTION (No. 63) CONCERNING STATISTICS OF WAGES AM) HOURS OF WORK, 1938 As has been mentioned in Chapter I, the two Conferences convened in 1929 and 1930 by the Social Science Research Council of the United States passed resolutions on wage index numbers and on the methods of international wage comparisons. The latter subject was discussed again at the 4th International Conference of Labour Statisticians (Geneva, 1931) ; after having examined the available data on wages and cost of living in the various countries, the Conference decided to ask the Governing Body of the International Labour Office to contemplate the possibility of the adoption by the International Labour Conference of a Convention on wage statistics and cost-of-living index numbers as the best means of achieving a substantial improvement of the data available on these two subjects in the various countries. The 4th International Conference of Labour Statisticians also recommended that a Committee of Statistical Experts should be appointed by the Governing Body to examine further the problems raised by international comparisons of wages and cost of living and to co-operate in the preparation of a proposed Convention on these subjects. In one of the documents submitted by the Office to the second session of the Committee of Statistical Experts (1935), the point was made that the resolutions arrived at by preceding International Conferences of Labour Statisticians, although extremely useful in that they showed the lines along which labour statistics were to be developed in the various countries, had not entirely justified the hopes they had raised, and that furthermore they did not, with one exception (the so-called October enquiry into wages and normal hours of work by occupations and into retail prices of food, fuel and rent), provide for the transmittal of data by the various countries to the International Labour Office. The further point was made that, since it would be impossible in practice to draft a Convention on all labour statistics, the question of most immediate concern to the workers, namely 86 WAGES AND PAYROLL STATISTICS wages, ought to be chosen for the first (experimental) international Convention on statistics. A good many of the points to be included in the proposed Convention would be found in the resolutions adopted b y the various International Conferences of Labour Statisticians. The first and most important one would be to t r y to induce each country to publish statistics both on rates and on earnings, and, further, to distinguish wages according to sex, age (adults, juveniles), skill, industry, occupation, and region. The proposed Convention was also to lay down a minimum periodicity and limit the interval between the date of first publication of the figures and the date to which they refer. The Committee of Experts unanimously recommended t h a t the question of a proposed Convention on labour statistics should be included on the agenda of the 1937 Session of the International Labour Conference, t h a t the Convention should be limited to statistics of wages and hours of work, and t h a t a Technical Conference of official labour statisticians should be convened to examine the draft text of the proposed Convention before its submittal to the International Labour Conference. The Committee also suggested t h a t " a Recommendation be appended to the Draft Convention to the effeot that statistics should be periodically collected and published, showing the amount of the total wages bill in each of the principal industries (and indicating the extent to which they are representative of all the workers)". The Committee thought t h a t the proposed Convention ought to cover all non-agricultural branches of economic activity, with a special reference to the fact t h a t wage statistics in agriculture were to be compiled once a year in less detail than in the other branches of economic activity. The Committee, in its report to the Governing Body, included a lisi of points to be covered b y the proposed Convention. Following up the suggestion of the Committee, the 5th International Conference of Labour Statisticians was convened in Geneva in September 1937. I t met to examine the technical aspects of the Office proposals for the standardisation of wages and hours of work b y means of an international Convention. I n preparing these drafts the Office had taken into account the state of the existing statistics of wages and hours of work in various countries. This examination showed t h a t different kinds of statistics on these subjects were in varying degrees of development in the different countries. I n some cases, preference had been given to the statistics of average earnings and actual hours worked, CONVENTION NO. 6 3 87 while in others preference had been given to statistics of rates of wages and normal hours. Thus, a Convention dealing with both these distinct classes of statistics might be difficult to ratify in the case of countries which had developed their statistics on one line rather than another. I n order to avoid having a series of Conventions dealing with the different classes of statistics of rates of wages and normal hours, and average earnings and actual hours, the Office draft proposed to divide the Convention into two separate parts, either of which could be excluded by a country in its ratification. This point of view was adopted b y the Conference. I t decided, however, to add a third part dealing with agricultural wages, in view of the special conditions attaching to this industry. As regards the categories of workpeople covered by these Parts I I and I I I of the Convention, the Conference decided t h a t it should be confined to wage earners in mining and manufacturing (including building and construction). For those aspects of the subject not covered by the Convention, but for which the compilation of statistics was considered desirable to supplement the data to be provided under the Convention, a Recommendation was drawn up. One paragraph of the Recommendation deals with salaried employees, another with wage earners in commerce, transport and administrative services which are not covered b y the Convention. The Recommendation also contains provisions on the subject of annual aggregate wages, annual earnings per worker, decennial enquiries into earnings by occupations, etc. 1 The 5th International Conference of Labour Statisticians also wished to draw attention to two questions which were not dealt with in the drafts submitted to it and which it had not discussed in detail. The first question was, whether it was not desirable to include in the proposed Convention " modifications " to meet the case of countries to which Article 19 (3) of the Constitution of the Organisation applies. Such countries were not extensively represented in the Conference, and it seemed important to consider fully whether the inclusion of such provisions might not make i t possible for them to become parties to the proposed Convention. The second question was, whether it would not be desirable that the proposed Convention should include some provision For the text of the proposed Recommendation, see Appendix I, p . 134. 88 WAGES AND PAYROLL STATISTICS empowering an appropriate body of statistical experts to formulate from time to time proposals for the improvement and amplification of the statistics compiled in pursuance of the Convention. The Committee on Statistics of the 24th Session of the International Labour Conference (1938) proceeded to a detailed examination of the proposed Convention. One of the requirements added during this examination concerned statistics of hours of work in agriculture, which were to be compiled " so far as practicable ". A number of resolutions were also adopted by the Committee on the need for further improvement of statistics of wages and hours of work in agriculture and on the need for extension of the Office's studies on international comparisons of real wages. It also requested in a resolution that, in accordance with Article 24 of the Convention, the need for further development of statistics of wages and hours of work along the following lines should be brought to the attention of the Governments : separate figures of earnings and of hours actually worked for each of the principal occupations ; statistics siowmg the aggregate amount of wages paid per annum in each of the principal industries ; and statistics showing average annual earnings of workers employed in each of the principal industries. Mr. Ramsbottom, Reporter of the Committee on Statistics, in presenting the Committee's report to the Conference, stated that two important features of the proposed Convention were that certain parts of the Convention could be excluded from ratification, and that the Convention did not require ratifying countries to exercise compulsory powers in the collection of the information. After a general discussion, the Convention was put to the vote and adopted by 125 to 0.1 1 Articles 19, 22 and 35 of the Constitution of the International Labour Organisation regulate the adoption of Conventions by the International Labour Conference, their ratification and application by States Members and the way in which States Members are required t o report back t o the Conference on the measures taken to apply the ratified Conventions. The text of these articles is as follows : Article 19 1. When the Conference has decided on the adoption of proposals with regard to an item in the agenda, it will rest with the Conference to determine whether these proposals should take the form : (a) of an international Convention, or (b) of a Recommendation to meet circumstances where the subject, or aspect of it, dealt with is not considered suitable or appropriate a t t h a t time for a Convention. 2. I n either case a majority of two thirds of the votes cast by the delegates present shall be necessary on the final vote for the adoption of the Convention or CONVENTION NO. 6 3 89 Convention No. 63 was adopted in 1938 and came into force on 22 June 1940, twelve months after the second ratification Recommendation, as the case m a y be, by the Conference. 3. I n framing any Convention or Recommendation of general application the Conference shall have due regard to those countries in which climatic conditions, the imperfect development of industrial organisation, or other special circumstances make the industrial conditions substantially different and shall suggest the modifications, if any, which it considers m a y be required to meet the case of such countries. 5. I n the case of a Convention— (a) the Convention will be communicated to all Members for ratification ; (b) each of the Members undertakes t h a t it will, within t h e period of one year a t most from the closing of the session of the Conference, or if it is impossible owing to exceptional circumstances to do so within the period of one year, then a t the earliest practicable moment and in no case later t h a n eighteen months from the closing of the session of the Conference, bring the Convention before t h e authority or authorities within whose competence t h e m a t t e r lies, for the enactment of legislation or other action ; (o) Members shall inform the Director-General of the International Labour Office of the measures taken in accordance with this Article to bring the Convention before the said competent authority or authorities, with particulars of the authority or authorities regarded as competent, and of the action taken b y them ; (d) if the Member obtains the consent of the authority or authorities within whose competence the matter lies, it will communicate the formal ratification of the Convention to the Director-General and will take such action as m a y be necessary to make effective the provisions of such Convention ; (e) if the Member does not obtain the consent of the authority or authorities within whose competence the matter lies, no further obligation shall rest upon the Member except t h a t it shall report to the Director-General of the International Labour Office, a t appropriate intervals as requested b y the Governing Body, the position of its law and practice in regard to the matters dealt with in the Convention, showing the extent to which effect has been given, or is proposed to be given, to any of the provisions of the Convention by legislation, administrative action, collective agreement or otherwise and stating the difficulties which prevent or delay t h e ratification of such Convention. 7. I n the case of a federal State, the following provisions shall apply : (a) in respect of Conventions and Recommendations which the federal Government regards as appropriate under its constitutional system for federal action, the obligations of the federal State shall be the same as those of Members which are not federal States ; Article 22 Each of the Members agrees to make an annual report to the International Labour Office on t h e measures which it has taken t o give effect to the provisions of Conventions to which it is a party. These reports shall be made in such form and shall contain such particulars as t h e Governing Body m a y request. Article 35 1. The Members undertake t h a t Conventions which they have ratified in accordance with the provisions of this Constitution shall be applied to the non(footnote continued overleaf) 90 WAGES AND PAYROLL STATISTICS had been registered with the Secretary-General of the League of Nations (Article 26 of the Convention). By the middle of 1949, the following ratifications had been registered 1 : Ratifying countries U n i o n of S o u t h Africa Netherlands Norway Switzerland Egypt Canada Date of registration of ratification . . 21 22 8 5 18 9 29 23 5 16 6 9 8 26 J u n e 1939 J u n e 1939 A u g u s t 1939 S e p t e m b e r 1939 J a n u a r y 1940 M a r c h 1940 M a r c h 1940 M a y 1940 O c t o b e r 1940 J u l y 1942 April 1946 O c t o b e r 1946 April 1947 M a y 1947 Parts excluded III III I I and IV II II III I I I and IV I I I and IV III The way in which each of the ratifying countries does in fact compile and publish the statistics required by Convention No. 63 is summarised, with reference to the operative articles of the Convention, in the following pages. * metropolitan territories for whose international relations they are responsible, including any trust territories for which they are t h e administering authority, except where the subject m a iter of the Convention is within the self-governing powers of the territory or the Convention is inapplicable owing to the local conditions or subject to such modifications as may be necessary to adapt the Convention to local conditions. 1 The Convention was transmitted by the President of the United States to t h e U.S. Senate on 17 J a n u a r y 1949 (and referred to its Committee on Foreign Relations) " with a view to receiving the advice and consent of the Senate to ratification ". The letter of transmittal of the President, as well as related documents b y t h e Acting Secretary of State, t h e Secretary of Labor a n d the Assistant Secretary of the Department of Agriculture, all recommend ratification (limited to the continental United States). The National Assembly of France, on 21 J a n u a r y 1949, referred to its Committee on Labour and Social Security, a Bill tabled by the Minister of Labour and by the Minister of Foreign Affairs and authorising t h e President of t h e Republic to ratify Convention No. 63 (excluding P a r t IV, Wages in Agriculture) (Assemblée nationale, Première legislature, Session de 1949, No. 6134). The Bill has been approved, and ratification of Convention No. 63 by France m a y be expected in the near future. 91 CONVENTION NO. 6 3 PART II. AND OF STATISTICS OP AVERAGE EARNINGS HOUBS ACTUALLY WORKED IN MINING, MANUFACTURING AND CONSTRUCTION This part has been excluded from ratification by New Zealand2, and the Union of South Africa.3 Australia1, Article 5 This Article provides that separate figures shall be given for each of the principal industries, t h a t such statistics shall be compiled for all wage earners or a representative sample of workers, and t h a t the scope of the industries shall be given. The number of industries in Canada for which separate figures on earnings are given is 3 in mining, 3 in construction and 42 in manufacturing ; in Denmark, earnings are shown separately for 67 skilled and 66 unskilled occupations for males, and 50 occupations for females ; Egypt classifies the data in 29 industrial branches divided into 161 industrial sub-groups ; the number of industrial branches is 25 in Finland, 38 in Ireland, 37 in Mexico, 24 in the Netherlands (social insurance series), 12 in Norway, 14 in Sweden, 18 in' Switzerland (building is not included) and 16 in the United Kingdom.4, For statistics of average hours of work, the industrial break1 The Quarterly Business Survey provides information on average weekly earnings of wage earners and salaried employees, separately for male and female, manufacturing and all industries, adult and junior workers and for manual and non-manual workers. The branches covered are : mining, manufacturing, building and road transport. So far, figures are available for J u n e and September 1947 only ; these surveys have not been repeated, although it is hoped a t some future date to carry out further surveys of the same nature ; a t t h a t time, the Australian Government states t h a t consideration will be given t o t h e desirability of cancelling the declaration excluding Part I I from the ratification of t h e Convention. Information on earnings is also available from payroll t a x returns. 2 New Zealand, nevertheless, publishes a weekly earnings series (enquiry held in March of each year). 3 An enquiry into average weekly earnings is undertaken in the 9 chief industrial areas of the Union of South Africa in September of each year for the following branches : building and construction, printing and publishing, engineering, baking and confectionery, footwear, clothing, and furniture making. I t covers the larger firms only. For gold mining, the average wage per day (exclusive of overtime) is available in June of each year. The following particulars are therefore needed before ratification of P a r t I I could be considered : hours actually worked in mining, manufacturing and construction and average earnings, including overtime, in mining. 4 See Appendix I I . 92 WAGES AND PAYROLL STATISTICS down is usually the same ; Denmark and Norway, however, do not publish statistics of average hours of work as required by this Article. With regard to coverage, Canada covers practically all establishments having more than fifteen employees ; Denmark covers establishments affiliated to the Danish Employers' Confederation (approximately 45 per cent, of the total number of workers) ; Egypt includes all establishments in the enquiry every third year, the half-yearly surveys being limited to a 25 per cent, sample of establishments ; Finland covers the establishments belonging to employers' associations ; Ireland covers all establishments employing four employees or more, or having an annual value of production above a certain sum (in the bread and biscuit and in the grain milling industries) ; in Mexico, the " more important " establishments are included in the sample. No information is available on the criteria used, but the Mexican Government believes t h a t the sample used is " sufficiently representative " ; the Netherlands includes all wage earners in one series (accident insurance) and all establishments belonging t o employers' associations in the other (statistics of establishments) ; Norway covers all establishments affiliated to employers' associations, regardless of size ; the list of establishments in Sweden is based on commercial directories, and the geographical and industrial distribution of the sample is described as good ; in Switzerland, the sample is composed mainly of establishments belonging to employers' associations and is described as representative from the point of view of average size and regional and industrial distribution ; in the United Kingdom, the forms of enquiry were sent, in October 1938 (first enquiry), to all employers with more than ten workpeople and to a 20 per cent, sample of smaller firms, and approximately 70 per cent, of the employers furnished returns. I n order to ensure comparability, the enquiries have since been addressed, in general, to those firms which originally made returns, with arrangements for adding new firms coming into existence, and between 95 and 100 per cent, of the employers canvassed furnish returns on each occasion. With regard to the third requirement, t h a t the scope of the industries or branches of industry should be briefly indicated, it is usually the case t h a t the title of the industry as given in the primary source is sufficient for most purposes. When more details are required, the necessity arises to go back to the census classification of industries with which the classification used in the wage statistics usually coincides. CONVENTION NO. 6 3 93 Artide 6 This Artide provides that the figures of average earnings shall include all cash payments and bonuses, as well as social insurance contributions and taxes deducted by the employer. In Canada, payroll figures do not include Christmas bonuses, etc.; regular bonuses, employees' social security contributions, union check-offs, cost-of-living bonuses and taxes are included. In Denmark, figures of hourly earnings do not include supplements for overtime, night work, work during holidays and on Sundays, supplements for shift changes, paid vacations, sickness benefits, lunch indemnity, special bonuses, travelling allowances, etc. ; but cost-of-hving allowances (if set down in collective agreements), workers' social insurance premiums, trade union dues and income taxes are included. For Egypt, the figures include all cash wages and bonuses paid by employers, as well as contributions and taxes deducted at the source. In Finland, payroll figures include special bonuses, wage taxes, cost-of-living bonuses, etc. In Ireland, bonuses, social insurance contributions and income and other taxes deducted by the employer are all included. With regard to Mexico, no information is available on this point. In the Netherlands, the accident insurance series includes Christmas bonuses, workers' social security contributions, union check-offs, wage taxes, cost-of-hving bonuses, etc. ; family allowances voluntarily paid by employers in excess of the legal minima are also included. In Norway, workers' social security contributions, union dues, wage taxes, family allowances and cost-of-living bonuses are included ; occasional payments such as gratuities are not. In Sweden, payroll figures include Christmas bonuses, cost-of-hving bonuses, supplements for overtime and night work, etc. ; they do not include paid holidays, sick pay, compensation for accidents, etc. In Switzerland, earnings include cost-of-hving and other bonuses and other supplements paid regularly (e.g., family allowances). In the United Kingdom, wages stated on the returns are total earnings, inclusive of bonuses, etc., before any deductions are made (for income tax, workers' insurance contributions, etc.) ; they exclude employers' contributions to national health, old-age and unemployment insurance and to holiday funds ; the value of family allowances (which are paid by the State) is not included ; cost-of-hving bonuses and war allowances are included, as well as other bonuses dependent on output ; special bonuses such as Christmas bonuses are included at their average weekly value. 7 94 WAGES AND PAYROLL STATISTICS Article 7 This Article provides that if allowances in kind form a substantial part of the total remuneration, estimates of their money value shall be given, so far as practicable. Allowances in kind are not taken into account in Canada and in the United Kingdom (except in mining, where they are shown separately) ; they are specifically included in Finland, the Netherlands, Norway, Sweden and Switzerland ; for the other ratifying countries, the situation is not clear. But the annual reports of most ratifying countries state on this point that allowances in kind do not represent a substantial part of the total remuneration of workers in mining, manufacturing and construction. Article 8 This Article provides that, so far as practicable, figures on earnings shall be supplemented by information on family allowances. See comments on Article 6. Family allowances are included in the Netherlands only to the extent that they go beyond the legal minima. In Norway, on the contrary, the data are obtained through employers' associations, and since one of the tasks of these associations is to check whether their members live up to the obligations laid down in collective agreements it is unlikely that any amounts going beyond what is laid down in these agreements will be reported. In Finland, family allowances in cash have been negligible over the past few years ; but the valué of family allowances in kind is presumably included. In a third group of countries (Canada, Ireland and the United Kingdom), family allowances are paid directly by the State to the beneficiaries ; they are therefore not taken into consideration in earnings figures derived from payroll data. Family allowances are included in Switzerland. The situation is not clear in the remaining countries. Article 9 This Article provides that average earnings shall relate to earnings per hour, day, week or other customary period and that, in cases where they relate to earnings per day, week or other customary period, the statistics of actual hours shall relate to the same period. In Canada, figures show average weekly salaries and wages for all employees ; earnings per hour are shown only in the case of CONVENTION NO. 63 95 wage earners for whom a record of hours worked is kept ; figures on hours actually worked per week are published concurrently. In Egypt, the special enquiry on wages provides parallel figures on hours actually worked per week. The same is true of Mexico. All other ratifying countries publish figures on a per hour basis, although most of them publish figures of average earnings per week as well, in which case they usually also publish a series on hours actually worked per week. Finland publishes a series on hours worked per fortnight. Article 10 This Article provides that the statistics of earnings and hours of work shall be compiled at least once a year, and that at least once every three years separate figures shall be given for each sex and for adults and juveniles, except in the cases as specified in the Article. In Canada, figures are published monthly ; averages are available by sex (but not by age) on the basis of one week in the year. In Denmark, the statistics are issued quarterly ; they make the distinction according to sex but not according to age. Egypt states that the number of female workers and juveniles is not significant (3 and 10 per cent, respectively). In Finland, the series is a quarterly one and applies to adult wage earners (eighteen years of age and over) only ; it is available by sex. In Ireland, the series refers to one week in mid-October and includes apprentices ; figures are available by sex and for juveniles and adults (under eighteen years of age, and eighteen years of age and over). In Mexico, the series is (or was) compiled in October of each year ; it does not make a distinction according to sex and according to age. In the Netherlands, the hourly earnings series (statistics of establishments ; half-yearly series) does not distinguish between earnings of males and females or between earnings of adults and juveniles ; the daily earnings series (accident insurance ; yearly) applies to adult production workers only ; no distinction is made according to sex ; distinctions according to sex and age are available for other series. In Norway, the information was obtained quarterly in the years 1940-1942 and twice a year during 1943-1945 ; it has been obtained at quarterly intervals again since the beginning of 1946, separately for each sex and for adults and juveniles. In Sweden, the yearly series distinguishes males and females and separates juveniles from adults. In Switzerland, the series refers to October of each year ; data are available separately for each 96 WAGES AND PAYROLL STATISTICS sex and for the two age groups. In the United Kingdom, the enquiryheld twice a year shows separate figures for men twenty-one years of age and over, youths and boys, women eighteen years of age and over, and girls. Article 11 This Article provides that when wages and hours figures do not relate to the whole country, the areas covered shall be indicated. This is usually done. For most ratifying countries, the statistics relate chiefly to urban workers. In the case of Mexico, the (limited) geographical scope of the figures is indicated in the source. Article 12 This Article provides that weighted index numbers of earnings per hour and other customary periods shall be compiled and their methods of computation explained. In Canada, index numbers of weekly earnings are published regularly ; they are at present unweighted, but consideration is being given to the establishment of industrial weights ; the series on hourly earnings has not been in existence long enough to warrant the compilation of an index number. No index numbers are published by Denmark or Egypt. (Denmark publishes an index of real wages, however.) In Finland, the index numbers are based on 1939 = 100 (hourly earnings only). In Ireland, index numbers are computed on the basis 1938 = 100, September 1939 = 100, and October 1939 to March 1940 = 100. In Mexico, no general index numbers of average earnings have been computed ; the reports of the Department of Labour to the Mexican Congress do contain index numbers (based on 1939 = 100) for a few industrial branches only. In the Netherlands, the hourly earnings series is published only as an index number (1938-1939 = 100), whereas no index number is computed for the daily earnings series (accident insurance). No index numbers are computed by Norway. In Sweden, the basis for the index numbers is 1939 = 100. In Switzerland, the basis is June 1939 = 100 for the statistics of establishments series. In the United Kingdom, the basis of the index numbers is October 1938 = 100. 97 CONVENTION STO. 6 3 PART III. STATISTICS OF T I M E RATES OF W A G E S AND OF NORMAL H O U R S OF W O R K IN M I N I N G , MANUFACTURING AND CONSTRUCTION This part of the Convention was excluded from ratification by Denmark, Egypt, Finland, Norway, Sweden and Switzerland. Article 13 This Article provides t h a t statistics of rates and normal hours of work shall be compiled for a representative selection of the principal industries in mining, manufacturing and construction. I n Australia, the index of wage rates covers agriculture, mining, manufacturing, construction, transport, etc. I n Canada, it covers logging, mining, manufacturing, construction, transport and communications, and services. I n Ireland, the index covers so-called " protected industries " in mining and manufacturing (industries producing transportable goods) ; sugar, brewing, distilling, bread and creameries are omitted. On this point the latest report of the Mexican Government (for the year 1947-1948) on the application of Convention No. 63 observes : The Office of Labour Statistics of the Secretariat of Labour has stated that it cannot provide statistics of workers benefiting under the minimum wage scheme. The number of those who receive the rates laid down under the statutory procedure is in fact small — i.e., the wages obtained by contract are higher, sometimes much higher, than the rates approved by the Conciliation and Arbitration Boards. It is difficult to find anyone who receives exactly the prescribed minimum rate. This refers to the procedure under which minimum wages are fixed every other year by regional conciliation and arbitration boards after special local wages committees on which employers and workers are represented have examined the position and made recommendations for the localities concerned. 1 The observation quoted above is based on a misunderstanding of the provisions of the Convention, since the Convention does not call for statistics of the number of persons receiving certain wages, but for statistics of rates of pay. Mexico publishes unweighted averages in absolute 1 Cf. International Labour Conference, 31st Session, San Francisco, 1948, Report VI (a) : Wages, (a) General Report (Geneva, I.L.O., 1948), p . 174. 98 WAGES AND PAYROLL STATISTICS amounts of the minimum wages thus arrived at (cf. Compendio estadístico, 1947, p. 175). It is obvious of course that statistics of legal minimum wages actually received by no one are less useful than statistics of minimum or predominant rates for various occupations extracted from collective agreements, etc. In the Netherlands, the statistics have the scope defined by this Article. Rates statistics in New Zealand cover mining, manufacturing, construction, transport and commerce. In the Union of South Africa, the rates cover mining, manufacturing, construction, transport and commerce. In the United Kingdom, the statistics cover agriculture, mining, manufacturing, construction, transport, etc. Article 14 This Article defines the source from which the rates and normal hours shall be taken and the term " normal hours ", and provides that sources and terminology used shall be explained. In Australia, rates are extracted from " awards, agreements and determinations ". In Canada, rates are collected from 15,000 business establishments and supplemented in some cases by information extracted from trade union returns and from collective agreements ; minimum rates are not being compiled. In Ireland, the rates are extracted from employers' schedules in so-called " protected industries " and the series is an extension of an employment series designed to show the effects on employment of import duties, etc. For Mexico, see comments to Article 13 ; no statistics of normal hours of work have been compiled. In the Netherlands, rates are extracted from collective agreements and official regulations. In New Zealand, arbitration awards or industrial agreements are used as source. In the Union of South Africa, rates are extracted mainly from collective agreements and wage determinations. In the United Kingdom, rates are drawn from collective awards and arbitration awards or from Statutory Orders in those industries in which minimum rates are fixed under the provisions of the Wages Council Acts and the Agricultural Wages Regulations Acts. Rates are described as minimum rates by all ratifying countries, without further explanation, except in Canada, where they are described as " straight-time earnings ". Article 15 This Article provides that separate figures for the main occupations shall be given at least once a year, that separate figures for the main occupations in a wide and representative selection of CONVENTION NO. 6 3 99 the different industries should be given at least every third year, t h a t the classification used for rates and for hours should be the same, etc. I n Australia, the rates are given according to degree of skill, years of apprenticeship being specified at generally four or five years ; the series covers 3,948 male and 308 female occupations in the more important industries. I n Canada, rates (in absolute amounts) are given by region for each occupation ; the classification according to degree of skill is not used. I n Ireland, the information is extracted from employers' schedules and separate figures by occupations are therefore not available on the basis of this series ; separate rates for a series of important occupations are published, however. The source of the information does not enable Mexico to apply this Article. I n the Netherlands, the series covers 350,000 adult workers in occupations or groups of occupations in twenty-four industrial branches ; degrees of skill are not shown. I n New Zealand, weekly money wage rates for adult male workers in representative groups are given monthly. The statistics of the Union of South Africa are published in conformity with this Article. In the United Kingdom, published figures are based on over nine hundred separate wage records in sixty-nine branches ; different rates are fixed for specified occupations in most industries, but in some occupations they are classified into categories, e.g., skilled, semi-skilled and unskilled. Article 16 This Article provides that, if rates are not shown on a per hour basis, information on normal hours necessary to compute hourly rates shall be provided. Australia publishes both an hourly and a weekly wage rate series. I n Canada, rates are published on a per hour basis ; information on normal hours of factory workers is published also. Ireland publishes weekly rates and normal hours of work per week for a series of occupations in certain town districts. Mexico, the Netherlands and New Zealand publish rates per hour. The Union of South Africa follows the provisions of this Article in its statistics. The United Kingdom publishes an index of normal hours of work besides its series on weekly wage rates. Article 17 This Article provides that, if available, information shall be given b y sex and separately for adults and juveniles. 100 WAGES AND PAYROLL STATISTICS Australia shows rates separately for adult males and adult females ; juveniles are not shown. I n Canada, rates shown refer to adult males only. I n Ireland, the series on rates covers both males and females with no age limits specified ; the occupations covered are not classified according to degree of skill ; rates fixed for each occupation under the Trade Board Acts of 1909 and 1918 are shown separately for adult (twenty-two years of age and over) male and female workers. I n Mexico, no distinction according to sex or age is made. I n the Netherlands, rates apply to adult males only, and in New Zealand to adult males, adult females, and juvenile males and females (shown separately). I n the Union of South Africa, rates are given separately for each sex and for journeymen and learners and apprentices, irrespective of age. I n the United Kingdom, rates are shown separately for adult males, adult females and juveniles ; the age at which the adult rates apply is usually twenty-one years for males and from eighteen to twenty-one years in different industries for females ; after the adult age is reached, the rates usually continue to apply irrespective of age ; for juveniles, the rates at two separate ages (usually seventeen and nineteen years for youths and sixteen and seventeen years for girls) have been used (in 1946, 1947 and 1948, rates for juveniles have not been shown). Article 18 This Article provides t h a t when the series does not apply to the whole country, the districts, towns or industrial centres to which it does shall be indicated. I n Australia, figures are averages for the six capital cities, except for the mining, shipping and pastoral branches. I n the Union of South Africa, figures apply to the nine chief industrial areas. The series in the other ratifying countries cover the whole national territory. Article 19 This Article provides that, where available, payments for holidays, family allowances, rates for overtime and amount of overtime shall be indicated. As far as is known, no ratifying country has thus completed its wage rates statistics ; other sources have to be used t o get information on these points. CONVENTION NO. 6 3 101 Article 20 This Artide provides that, when they form a substantial part of the total remuneration, the value of allowances in kind shall be indicated. All ratifying countries state that such allowances do not form a substantial part of the total remuneration of workers in the industries considered. Article 21 This Article provides that weighted annual index numbers of rates shall be compiled and that index numbers of normal hours shall be compiled where only index numbers of rates are published. Australia, New Zealand and the United Kingdom publish index numbers annually in conformity with this Article. Canada publishes an index number of rates ; an index number of normal hours is being considered. For Ireland the (unweighted) index number of rates is published twice a year ; no index number of normal hours is computed. Mexico does not publish index-numbers of legal minimum rates. The Netherlands publishes only a weighted index of rates (based on June 1938-June 1939 = 100) ; no index of normal hours is computed. In the Union of South Africa, the index number of rates was discontinued in 1942; the old index applied to the weekly minimum rates of European male journeymen ; it was weighted and included transport and commerce, besides mining, manufacturing and construction. The computation of an index of normal hours of work will be undertaken as soon as circumstances permit. PART IV. STATISTICS OF WAGES AND HOURS OF WORK IN AGRICULTURE This part of the Convention was excluded from ratification by Egypt, Switzerland and the Union of South Africa.1 Article 22 This Article provides that, at least every two years, statistics 1 The Government of the Union of South Africa states t h a t almost the entire agricultural labour force consists of non-Europeans, a n d t h a t the practical difficulties of t h e collection of statistics of wages payable on farms are virtually insuperable. 102 WAGES AND PAYROLL STATISTICS of wages in agriculture shall be compiled, t h a t the nature and value of allowances in kind shall be indicated, t h a t separate figures for each of the separate districts shall be published, t h a t definitions as well as methods of compilation shall be given and that, so far as practicable, normal hours of work shall be indicated. I n Australia, statistics of wage rates in agriculture give separate figures for each State, but not for separate districts within each State ; the detailed tables indicate when board and lodging are provided in addition to money wages, but do not include an estimate of money value ; except in certain instances, it has not been practicable to indicate normal hours of work. I n Canada, statistics of agricultural workers' wages are published three times a year and show separate figures for each province ; they indicate average earnings, including and excluding the value of board and lodging received ; it has not been practicable t o indicate normal hours of work. I n Denmark, since 1943, statistics of wages in agriculture are published twice a year for a series of categories of agricultural wage earners (some with, others without board and lodging), separately for the islands and for Jutland ; no current statistics on hours of work are being published. I n Finland, statistics of agricultural wages are published twice a year (daily wages of day labourers) or once a year (annual averages for several categories of workers) ; statistics of hours are not compiled. In Ireland, statistics of minimum weekly rates of wages of male agricultural workers are drawn from Agricultural Wages Orders and published whenever there is a change in rates ; they distinguish three areas and several age groups ; no information is available on hoursl Mexico does not compile statistics of wages in agriculture. I n its latest annual report on the application of Convention No. 63, the Mexican Government explains the absence of such statistics as follows : The ejidatorio (person who holds public land free of rent provided he cultivates it) owns the product of the land and receives no actual wage ; within the collective agrarian system of Mexico, the great majority of peasants have this status. Wage-earning agricultural labourers are very rare and it is difficult to compile statistics of such persons since most of them are constantly on the move. In any case the Government has not given up the compilation of statistics of the wages of agricultural workers as an impossible task. I n the Netherlands, very complete (quarterly and weekly) statistics on earnings per hour and per week of adult male workers are published ; they distinguish between provinces and between time and piece work ; the value of room and board is included in CONVENTION NO. 6 3 103 the figures ; information on actual and normal hours worked is also available. I n New Zealand, statistics of wage rates in agriculture are compiled along lines similar to the ones followed for rates in manufacturing, except t h a t it has not been found practicable to compile statistics of hours of work. Norway publishes once a year statistics of yearly and daily wages of various categories of agricultural workers (separate figures for each province are provided) ; no statistics of hours are compiled. Sweden has very complete statistics ; data on earnings are given per hour, day, and year ; data on hours include the distribution of workers according to the number of hours worked during the year as well as the average number of hours worked during the year and per day. I n the United Kingdom, weekly total minimum wages (including value of board and lodging) are published quarterly for England and Wales ; normal hours are published in annual reports. PARTS I AND V. GENERAL AND MISCELLANEOUS PROVISIONS Article 1 This Article provides, amongst other things, t h a t each ratifying country should endeavour to publish data collected at quarterly or more frequent intervals during the succeeding quarter and t o publish data collected a t intervals of six or twelve months during the succeeding six or twelve months respectively. I n Australia, the quarterly series of hourly and weekly wage rates is published approximately four months after the date to which the figures apply. I n Canada, the hourly and weekly earnings series (published each month) is issued after an interval of approximately two months ; the time lag of the wage rates series (published once a year) is approximately twelve months. I n Denmark, the figures of the hourly earnings series (issued quarterly) are published from six to eight months after the end of the quarter t o which they refer. The report on the enquiry into wages and hours of work conducted twice a year in Egypt is received by the International Labour Office approximately twelve months after the date to which it applies. I n Finland, figures of hourly earnings are released from four to six months after the end of the quarter to which they apply. I n Ireland, the interval in the case of the series based on the census of industrial production in the " transportable goods " industries (hourly and weekly earnings in October of each year) is from fifteen to eighteen months. Weekly rates and weekly 104 WAGES AND PAYROLL STATISTICS earnings in so-called " protected industries " (published twice a year) are released after an interval of four months. I n Mexico, hourly earnings and hours worked per week (October of each year) have not been published since 1943 ; in its annual reports on the application of Convention No. 63 the Mexican Government explains t h a t this is due to budgetary difficulties and to lack of staff. Weekly earnings in a few industrial branches (railroads, textiles, mining and metallurgical plants, and oil industry) have been published down to 1946 in the yearly reports of the Secretaria del Trabajo y Previsión social to the Mexican Congress ; finally, an index number of monthly earnings (based on 1939 = 100) is available ; it covers a few branches in the manufacturing industries, and was published quarterly from 1936 to 1942 and monthly from J a n u a r y 1943 by the Dirección general de Estudios Económicos of the Secretaria de Economia in Trimestre de Barómetros Económicos ; the latest figure available at time of writing (June 1949) is December 1947. I n the Netherlands, the hourly wage rates series published each month is issued one week at most after the date to which the index refers ; the quarterly index number of hourly earnings is published after an interval of five months ; the latest year for which figures of daily earnings (accident insurance statistics) are available is 1947 ; in normal times, the interval is from eighteen months to two years. In New Zealand, the yearly figures of wage rates per hour are not published, but are communicated directly to the International Labour Office after an interval of approximately twelve months ; although New Zealand has not ratified Part I I of the Convention, it may be mentioned t h a t the series on weekly earnings (March of each year) is published after an interval of normally twelve months. Norway states t h a t in the case of the series on hourly earnings (obtained at quarterly intervals) the present time lag is approximately one year, but t h a t it is hoped to reduce it to less t h a n six months in the near future. I n Sweden, the results of the yearly enquiry into earnings per hour, day, week, and year are published within six months of the end of the year to which they refer. I n Switzerland, the October enquiry into hourly earnings provides partial results within three months ; final results are published after nine months ; the halfyearly statistics of earnings per hour and per day based on accident insurance returns are published after an interval of approximately six months. I n the Union of South Africa, rates and normal hours of work are published annually, except for engineering, printing and publishing, and building and construction (published CONVENTION NO. 6 3 105 quarterly with a time lag of one month) . I n the United Kingdom, the weekly wage rates series is published every month with a time lag of one month ; the enquiry into hourly and weekly earnings is conducted twice a year and results are published after an interval of six months. Article 23 This Article provides t h a t ratifying countries may exclude certain areas from the application of the Convention in whole or in part, if it is impracticable to comply with the Convention in such areas. Australia, Canada, Egypt, Finland, Ireland, Norway, Sweden and the United Kingdom, have not made use of this Article. Denmark has excluded the Faroe Islands and Greenland. Mexico, in its first annual report, did not limit the scope of its statistics on wages ; the series on hourly earnings and weekly hours of work (last computed in October 1943) is limited to the following regions, however : Federal District ; Districts of Atlisco, Guadalajara, Monterey, Orizaba, Puebla, Torreón and the mining region of Zacatecas. The Netherlands has excluded overseas territories. New Zealand has excluded the following industrial districts : Taranaki, Nelson, Marlborough and Westland. The figures communicated b y the Union of South Africa are limited to the five chief industrial areas, namely the Cape Peninsula (including Cape Town), Port Elizabeth, Durban and Princetown, Pretoria and the Witwatersrand (including Johannesburg) ; for the steel industry, information will be provided for the town of Vereeniging as soon as it has become a centre of the heavy steel industry. * * * A number of questions are raised for consideration. First, what effect has the Convention had on wage statistics in those countries which have adopted it ? I n answer, one can point to a country like Egypt, which from the date of the adoption of the Convention has instituted, and carried through every six months, an enquiry on wages and hours of work. I n general, every country which has ratified the Convention has surveyed its wage statistics and has attempted to put them into a form complying with the requirements of the Convention. This has meant in most cases a definite improvement in the existing statistics in the direction of these requirements. I n 106 WAGES AND PAYROLL STATISTICS addition, certain supplementary information which otherwise might never have been made available has been supplied. On the other hand, in one or two cases, a country, even though it has ratified the Convention, has not fulfilled the Convention's provisions, although it intended to do so at the time of ratification. Thus, Mexico has not carried through its project for statistics of wages in agriculture, and even its statistics of wages in manufacturing industries have been interrupted by lack of appropriation, in spite of the obligation assumed in ratifying -the Convention. The detailed analysis made above, which is based upon the replies of the Governments in their reports to the International Labour Office, shows what the situation is in respect of each provision of the Convention. I t may be useful at this point to describe very briefly the machinery used by the Office to check the application of the various Conventions ratified. Each country which has ratified one or more Conventions is required (under Article 22 of the Constitution 1 ) to supply the International Labour Office with a yearly report on the application of each Convention which it has ratified ; these reports are drawn up along standard lines laid down b y the Governing Body for each Convention, and, after having been examined by the appropriate technical service or services of the Office, are submitted to a Committee of Experts on the Application of Conventions, which draws up a first report addressed to the International Labour Conference, which is examined by the Conference's Committee on the Application of Conventions. With regard to Convention No. 63, the Committee of Experts noted in its report to the 1947 Session of the Conference the absence of statistics of hourly earnings in Mexico, and also noted the absence of any progress in the field of statistics of wages in agriculture for t h a t country. I n their report to the 1948 Session of the Conference, the experts noted t h a t budgetary difficulties and lack of staff was the explanation given by the Mexican Government for the absence of recent statistics of hourly earnings in manufacturing, and they requested information on whatever progress was made by Mexico in the field of agricultural wages. Observations made by the experts to the 1949 Session of the Conference concerned Egypt, Finland, Mexico, the Netherlands, and the United Kingdom. At various times, Government delegates come and explain to the Committee on the Apphcation of See above, footnote to p . 88. CONVENTION NO. 6 3 107 Conventions of the Conference the reasons why certain parts of the Conventions which they have ratified are not applied fully by their country. But beyond that the International Labour Conference is unlikely to go.1 In conclusion it may, therefore, he said that the manner in which Convention No. 63 is applied by the various countries which have ratified it is mainly a matter for the countries themselves, and that the action so far taken by the International Labour Conference in this connection has been limited to urging the various Governments towards a fuller application of the stipulations of the Convention. Nevertheless, even though the machinery of " enforcement ", as used, is far from being fully effective, it does in fact apply a steady moral pressure towards a satisfactory observation of the provisions of the Convention. One consequence of the ratification of Convention No. 63 by any given country should at least be mentioned, and that is the usefulness to the Statistical Section of the International Labour Office of the annual reports sent in by such a country as a source of information on methods of computation and exact scope of the series on wages and hours of work. The ratification of the Convention by France and the United States may be expected in the near future. These countries evidently consider that their statistics either completely fulfil or, with minor modifications, can fulfil the requirements of the Convention. It is clear that in all cases where ratification is under consideration the Convention operates to bring the statistics of different countries into line with its detailed recommendations for the calculation of statistics of wages and hours of work. It may be useful at this point to review the existing state of wage statistics in countries which have not ratified the Convention, with a view to determining which countries might ratify at once and whether many more countries may not be in a position to ratify soon. Given the limited time available for such a review, it cannot be as detailed as was the case in the years 1935-1938, prior to the adoption of the Convention ; the result of the review under1 Articles 24 to 34 of the Constitution define the measures which the Governing Body and the International Labour Conference may take in cases where countries do not apply the provisions of Conventions which they have ratified ; it seems, however, unlikely t h a t such measures (Commission of Enquiry, complaint to t h e International Court of Justice, etc.) would be taken in the case of Convention No. 63. 108 WAGES AND PAYROLL STATISTICS taken before the war is contained in Report VI to the 24th Session of the International Labour Conference (1938) : Statistics of Hours and Wages in the Principal Mining and Manufacturing Industries, including Building and Construction, and in Agriculture (Geneva, I.L.O., 1938). Generally speaking, it can be stated t h a t in a good many of the countries affected by the war, wage statistics have not been completely reorganised as yet, and that therefore the scope and completeness of the wages and hours statistics are less now than was the case before the Second World War. This is particularly true for Germany, which before the war had a very complete range of rates, earnings and hours statistics and of statistics of wages in agriculture, and which a t the present time, at least in the three western zones, publishes only statistics of hourly and weekly earnings and of hours of work per week in manufacturing industry and in building. At the Conference of Statisticians of the Land Statistical Offices of the three western zones of Germany, held in Wiesbaden on 14 and 15 December, 1948, it was decided t h a t additional earnings and hours statistics would be obtained for white collar workers in the manufacturing industries, trade, transport and communications and Government services, and once annually, yearly gross and net earnings of manual workers in agriculture and commercial forestry ; a special census of hourly tariff wage rates was undertaken in March 1949 to serve as a basis for a continuous record of tariff wage rates and rates statistics. Japan, before the war, had daily wage rates statistics both in absolute amounts and index numbers for mining, manufacturing and construction ; it had a very complete range of statistics of daily earnings and actual hours of work in mining, manufacturing and construction and also statistics of daily wages in agriculture published once a year ; at the present time, J a p a n publishes once a month statistics of monthly earnings in manufacturing. I n the case of the Baltic countries (Estonia, Latvia and Lithuania) which, prior to the war, had a very complete set of wage statistics, information is no longer available. For various other countries which have not yet ratified the Convention (the list is not exhaustive), the present situation is as follows : I n the United States, data on wages and salaries (other t h a n statistics of rates of pay) become available in three ways : (a) CONVENTION NO. 6 3 109 from t a x reports ; (b) from census surveys ; (c) from samples of establishments. Social insurance statistics furnish data on wages and are derived from the Federal Old Age and Survivors Insurance Program and from the State-administered Unemployment Insurance Program ; wage data are also collected in connection with the insurance programme administered by the Railroad Retirement Board. I n Newfoundland, statistics of payrolls and earnings are not collected. The Argentine Republic publishes index numbers of hourly and monthly earnings in mining and manufacturing based on 1943 = 100. Brazil does not appear to publish a regular series on wages ; some information of limited geographical and economic scope only is available. I n the British West Indies, statistics of earnings are not available in Trinidad ; the only information available relates to rates of wages and hours of work as set out in collective agreement ; in Saint-Vincent, with the very small staff at the disposal of the Labour Department, it is only possible to collect, at quarterly and half-yearly intervals, certain information on rates of pay and earnings, and for this purpose an officer of the Department is deputed to visit the main places of employment, such as plantations, where the agricultural workers are employed, commercial establishments, other Government departments, etc. ; in Kingston, regular periodic enquiries into wages and other conditions of employment are not undertaken ; enquiries of this nature are made at irregular intervals, i.e., during visits of inspection. Chile publishes statistics of daily earnings in manufacturing ; information is also available on earnings in mining and wages in agriculture. Colombia publishes daily earnings (Bogotá) in mining, manufacturing, construction, transport and services, and also wage rates per day and daily earnings in manufacturing for the whole country. Convention No. 63 was submitted to the Colombian Senate for approval by the end of 1939, but no ratification has been forthcoming as yet. Cuba has no wage statistics ; monthly figures of total wages and salaries in all non-agricultural industries (estimated on the basis of revenues of the " Health and Maternity F u n d ") are available, however. I n Costa Rica the National Institute of Social Investigations 8 110 "WAGES AND PAYROLL STATISTICS and Studies of the Ministry of Labour and Social Welfare does not collect regular statistics of rates or earnings ; a great effort is being made at present to carry through the first industrial census in the country ; it is therefore possible that, beginning with next year, the benchmark data for the setting up of a series on payrolls and average earnings based on a sample of establishments will be available ; some information on average earnings is available, however, from the returns of the Costa Rican F u n d of Social Security and of the National Institute of Insurance. I n the Dominican Republic, information on daily earnings in manufacturing, transport, communications and services has been available twice a year since 1944 for the capital, Ciudad Trujillo. Guatemala publishes a series on weekly earnings in manufacturing. Peru has published information on total wages and average earnings per day for the years 1944, 1945 and 1946 ; these statistics cover agriculture, mining, manufacturing, construction, transport, commerce and laundry services ; they were based (in 1946) on 288 establishments with 62,793 wage earners. Figures distinguish between males and females, between workers over and under eighteen years of age, and between Peruvian nationals and aliens. Separate information on salaried employees is also available. In Uruguay, the series on monthly earnings is published at quarterly intervals and covers a sample of establishments in manufacturing only ; average monthly earnings in t h e sample of establishments are published, as well as an estimate of average monthly earnings in manufacturing as a whole, the figures of the 1936 industrial census being used as benchmark data. I n Venezuela, no statistics of earnings are available ; wage rates for a series of occupations are published, however, at quarterly intervals. Except for the agricultural wage statistics in Chile, all the series just described for Latin American countries were begun just before or during the Second World War. I n Burma, the pre-evacuation records containing labour and other statistics have all been lost, and there is at present no statistical office adequately staffed and equipped for collecting and compiling such statistics on any elaborate scale ; it is, however, hoped that, on the basis of the new Employment Statistics Act of September 1948, the Government of the Union CONVENTION NO. 6 3 111 of Burma will in the near future be able, either by expanding the existing Statistical Section of the Labour Directorate or b y setting u p a separate Statistics Bureau, to collect and preserve various labour and other statistics as required by t h a t Act. I n Ceylon, no statistics on the subject are available at present ; industrial and agricultural censuses were taken in 1946, but the information has not yet been tabulated. The work in connection with the regular collection of statistics of earnings from a representative number of establishments in each industry has already been begun by the Commissioner of Labour, but no results have been published as yet. China publishes index numbers (based on Jan.-June 1936 = 100) of daily earnings in manufacturing for the six leading cities. I n India, average earnings per year in manufacturing industry are available for the provinces covered by the Factory Act of 1934 ; more detailed statistics are available for the Provinces of Bombay and Bihar. The Government of India, under authority of the Industrial Statistics Act of 1942, now plans to undertake quarterly surveys on employment, attendance, wages and earnings and hours of work in respect of labour employed in factories, plantations, railways, tramways and ports. The series on employment and earnings will be given highest priority ; earnings data will be compiled on a per hour, per day and per pay-period basis, separately b y region, by industry, b y age and b y sex. Consideration will then be given to ratifying Part I I of Convention No. 63. Iran has no general wage statistics ; the only information available covers the building trades. Iraq has no information available on wages at the present time. Indo-China published, up to 1943, an enquiry conducted once a year, but asking for information on two dates within the year (1 Jan. and 1 July), into earnings per day for manual workers and earnings per month of white collar workers in the following branches : fishing, plantation work, mining, manufacturing, water and electricity, construction, transport, commerce, hotels and restaurants, and banking and insurance ; this enquiry was carried out again in 1948. No wage statistics are available for Indonesia. Palestine, until recently, published a series on daily earnings in mining, manufacturing and transport ; the series began in 112 WAGES AND PAYROLL STATISTICS J a n u a r y 1938 and the sample of establishments was increased in 1941. 1 Tor the territory of Hawaii the only information available is the survey conducted at two-yearly intervals by the Department of Labor and Industrial Relations into the wage rates and normal hours of work of a few selected industries in Honolulu ; industries covered a t the present time are : eating and drinking establishments, power and hand laundries and dry cleaning establishments ; motion picture theatres ; dairies ; and bakeries. I n Europe, no wage statistics are available at present for Belgium2, Greece, Poland, Portugal, Rumania3, Spain, Turkey, the U.S.8.B.4', and Yugoslavia. I n the case of Bulgaria, daily earnings in mining and manufacturing are available in January and J u l y of each year. For Czechoslovakia, a complete set of statistics on hourly "rates and earnings and on daily earnings (social insurance statistics) is currently available ; ratification of Convention No. 63 could take place with practically no adjustment of existing statistics. France had, even before the war, a series on rates of pay of various occupations in manufacturing together with figures on average earnings in mining and in the metal industry ; since the beginning of 1946, a quarterly survey has provided information on straight-time predominant rates in mining, manufacturing, construction, transport and commerce (forms sent out b y the Ministry of Labour through the labour inspectors) ; this series will be adjusted to conform with P a r t I I of Convention No. 63. For the first time, in 1948, an effort was made to derive information on earnings from the returns which employers are compelled to make at the end of each year to the Ministry of Finance ; this first enquiry, therefore, will cover wages and salaries paid out during the year 1947 ; all branches of economic activity will be covered, except Government employees, agricultural labourers and domestic servants ; the returns contain the list of all workers, their occupations, their annual earnings, the amount of taxes deducted at the source, an evaluation of wages paid in kind, etc. ; estimates 1 For a general appraisal of wage statistics in Asian countries, see : B . RAMAMUHTI : " Labour Statistics in Asian Countries " in : Government of India, Ministry of Labour, Labour Bureau : Problems of Labour —• A Symposium. 2 Some information on the general level of earnings has recently become available, based on returns from the social insurance schemes, b u t no regular series is published as y8t. 3 Information on monthly earnings, based on social insurance returns and on industrial censuses, is available down t o 1942 and 1945 respectively. 4 Cf. The Review of Economics and Statistics, Nov. 1947 and Feb. 1948. CONVENTION NO. 6 3 113 of average earnings are based on a sample covering one out of each fourteen names in the returns ; the estimates of annual earnings thus arrived at will therefore show only earnings subject to income tax. For practical reasons, the returns supplied by employers to social security schemes have not so far been used in order to arrive a t statistics of earnings. With regard to agriculture, information on rates so far available cover only minimum rates as determined b y local prefects ; there is no information as to how far these minimum rates are really representative ; a first enquiry into agricultural wages is being carried out a t the present time by the Ministry of Labour in co-operation with the Minister of Agriculture. Hungary used to publish statistics of rates in manufacturing, construction, transport and commerce before the war ; it also had various series of earnings in mining, manufacturing and transport, and a series on daily wages in agriculture. At the present time, the series on rates has been interrupted, the series on agricultural wages has been discontinued since 1937, and the only series available refers to index numbers of hourly earnings in manufacturing. I n the case of Italy, which before the war published hourly and weekly wage rates statistics, hourly, monthly and weekly earnings and actual hours statistics, and statistics of hourly wages in agriculture, the only series available at the present time is an index of hourly rates based on 1938 and computed by the Central Institute of Statistics ; the Ministry of Labour has been setting up a monthly series on earnings per hour in mining and manufacturing ; this series is still in its experimental stage and the first results have just been published. Luxembourg, up to 1938, published the results of an annual enquiry into daily earnings in mining, manufacturing and construction ; this series has not been published since. I n the Sudan, it has not been possible up to now to organise any statistical enquiry into payrolls and earnings ; the most t h a t could be supplied would be very limited data on such industrial activity as is under direct Government control, but this would not be representative of conditions in the whole country. * * * From this short summary of the present situation, it will be seen first, t h a t in a number of countries wage statistics have not yet attained the degree of development they had before the war, 114 WAGES AND PAYROLL STATISTICS secondly, t h a t in many countries wage statistics simply are not and have never been available, and thirdly, t h a t while perhaps only Czechoslovakia would be in a position to ratify the whole of Convention No. 63 (after minor readjustments of its wage statistics), a number of countries could ratify one or another of its parts. Convention No. 63 has been one of the elements of information on methods considered by the various countries when creating wage series, but its influence in promoting such series has not been as clear cut as might be wished. The 7th International Conference of Labour Statisticians will no doubt wish first to discuss in a general way the desirability of drawing up Conventions on statistical subjects, in the light of the experience gained during the last ten years with Convention No. 63. I t is obvious of course t h a t if both France and the United States ratify Convention No. 63 in the near future, the experience will become much more conclusive than hitherto. The example of Egypt, which decided to start from nothing, and publishes an entirely new series to conform with one Part of the ratified Convention, has already been mentioned. I n the expose des motifs presented to the National Assembly of France by the Minister of Labour, another concrete example of the influence of the Convention can be found : the Minister explains t h a t to conform to Part I I of the Convention, the existing series on straight-time predominant rates will have to be changed to cover all payments received by workers. This shows that, because of the Convention, an internationally comparable series which otherwise would not have been computed will be published by France in the near future. Other examples along the same lines could be cited. The Conference may wish to discuss next whether the Convention is in need of revision, whether certain parts could be omitted, whether some of the requirements could usefully be made more stringent (computation of averages for major branches, periodicity, time-lag in publication, etc.). An expression of opinion on this point would be especially valuable, since the Convention has been in force for nearly ten years and a decennial report on its application will become due in 1950. The attention of the members of the Conference is also drawn to Article 24 of the Convention, which reads as follows : 1. The Governing Body of the International Labour Office may, after taking such technical advice as it may deem appropriate, communicate to the Members of the Organisation proposals for improving and amplifying the statistics compiled in pursuance of this Convention or for promoting their comparability. CONVENTION NO. 6 3 115 2. Each Member ratifying this Convention undertakes that it will — (a) submit for the consideration of its competent statistical authority any such proposals communicated to it by the Governing Body ; (b) indicate in its annual report upon the application of the Convention the extent to which it has given effect to such proposals. The Conference may wish to make use of this Article and suggest to the Governing Body of the International Labour Office the points to which, in its estimation, the attention of ratifying Governments might usefully be drawn to improve the international comparability of the statistics obtained in pursuance of the Convention. 1 Finally, and depending on the results of the discussion on the first point, the Conference may wish to make suggestions as to what other statistics might, most urgently and usefully, be made the subject of further Conventions on labour statistics. 2 1 See also, a t the end of Appendix I, the text of the Resolutions on supplementary statistics adopted by the International Labour Conference in 1938. 2 The Conference will have on its agenda a request made by the Chemical Industries Committee of the International Labour Organisation t h a t industrial injuries statistics should be made internationally more comparable by means of a Convention. CHAPTER Vili PROPOSED RESOLUTIONS I Resolution om Wages and Payroll Statistics The Seventh International Conference of Labour Statisticians, Having been convened by the Governing Body of the International Labour Office, and having met at Geneva from 26 September to 8 October 1949, Being strongly of the opinion that adequate statistics of payrolls, average earnings and wage rates are essential for the correct appraisal of the economic position of countries and of various social categories within countries, Having considered the problems raised by the lack of statistics on these points in certain countries and the lack of international comparability of existing statistics, and Being further of the opinion t h a t the requirements of Convention No. 63 could usefully be supplemented by detailed proposals for the improvement of the international comparability of wage statistics, Adopts, this day of October 1949, the following Resolution : I. GENERAL OBJECTIVES 1. For a given country, an adequate programme of wage statistics would include the following information at the intervals indicated : (a) wages in agriculture, at least once a year ; (b) minimum rates of pay or average straight-time rates per hour and /or per week in the more important non-agricultural branches of economic activity, at least twice a year; (c) average earnings per hour, per day, and/or per week of wage earners in the more important non-agricultural branches of economic activity, at least once a quarter ; (d) average earnings per hour and /or per month of salaried employees in the more important non-agricultural branches of economic activity, at least once a year ; (e) index numbers of payrolls and average earnings of wage earners and/or wage earners and salaried employees in the PROPOSED RESOLUTIONS (f) (g) (h) (i) 117 more important non-agricultural branches of economic activity, at least once a quarter ; estimates of total wages and salaries, separately for wage earners and for salaried employees, in agricultural and nonagricultural branches of economic activity, at least once a year; average earnings per year in the more important non-agricultural branches of economic activity, at least once every three years ; information on compulsory and voluntary social charges paid by employers, at least once a year ; distribution of workers by wage classes, at periodic intervals. 2. (1) Breakdowns b y sex, by geographical area and between adults and juveniles should be shown for statistics referred to under 1 (b), 1 (c) and 1 (d). (2) These statistics should be published as speedily as possible, and quarterly figures should be published within the three months following the end of the quarter to which the figures refer. (3) I n cases where the information is obtained from payrolls, the questionnaire need ask only for details in respect of the categories referred to under 2 (1) and not for wages of individual workers. 3. I n collecting statistics of wage rates, average earnings and payrolls, consideration should be given to the application of adequate sampling techniques, with a view to obtaining accurate information at frequent intervals at minimum cost. 4. Periodically, breakdowns of average straight-time rates and/or average earnings for key occupations should be shown for the more important industrial branches. 5. Within each country, the definitions used in the various sources of information on total wages and salaries, payrolls and average earnings (statistics of establishments, social insurance statistics, censuses of production, of manufacture, etc.) should be specified and, so far as possible, the results reconciled or made comparable with definitions used in other series. II. STATISTICS OF ESTABLISHMENTS Sample 6. (1) I n determining a sample of establishments from which payrolls, average straight-time rates and average earnings data are to be obtained, particular attention should be given to securing proper representation of various branches of economic activity, of regions and of establishments of various sizes. 118 WAGES AND PAYROLL STATISTICS (2) Special efforts should be made to correct errors which result from the failure of establishments to make returns, and to obtain returns by establishments rather than by firms. (3) Studies should be undertaken to determine the best methods for setting up and revising from time to time the list of establishments from which a representative sample is drawn. (4) Payrolls, average straight-time rates and average earnings series should be compared with comprehensive benchmark data as such data become available and, in so doing, methods should be developed to include in the sample a due proportion of new establishments. (5) As resources and facilities permit, surveys should be made of the extent to which returns by establishments supply data which are more inclusive or less inclusive than those requested. 1 Coverage 7. (1) Information should always be made available concerning the criteria used for inclusion of establishments in the sample ; if the practice is to use a rather high minimum number of employees, a minimum percentage of representation in terms of employment should also be used. (2) As resources and facilities permit, studies should be undertaken, if necessary, to discover the relationship between trends in payrolls and levels of average earnings in the various size of establishment groups, the criteria for inclusion of establishments in the sample to be revised for certain industrial branches in the light of the results of such studies, and the lack of representativeness of the sample from t h a t point of view to be corrected by proper weighting (based on employment) in those branches where it is found t h a t size of establishment has an influence on levels of wages. 8. Establishments should be used as basic reporting units, in preference to undertakings, firms or companies ; when a single establishment comprises several units engaged in distinct activities, separate returns for each unit should be secured wherever possible. 9. I n order to avoid a progressive decrease in the degree of representativeness of the sample, the list of establishments should be augmented periodically by the inclusion of a suitable number of newly created establishments. 10. Details as to the degree of representativeness of the sample of establishments should be published periodically so as to make possible a fair appraisal of the series. 1 Paragraph 6 is a paraphrase of part of the Resolution concerning statistics of employment, unemployment and the labour force adopted by the Sixth International Conference of Labour Statisticians. PROPOSED RESOLUTIONS 119 Definitions 11. Summary enquiries carried out at frequent intervals should be based on returns showing payrolls, man-days, manhours, etc., for certain broad categories of workers and not on returns showing information for each individual worker. 12. (1) Categories of employees to be covered for data on payrolls and average earnings should be — (a) wage earners up to and including the working foreman level ; (b) salaried employees wherever possible. (2) Workers on paid vacation or holiday should be included ; workers on sick leave paid by the employers, strikers, workers performing military service, etc., should be included if they are at work and receive pay for part or the whole of the period covered by the returns. 13. (1) The value of payments in kind, where they exist, should be shown separately from cash payments. (2) Details as to the methods of estimating the value of payments in kind should be published periodically. (3) Family allowances, if part of payrolls, should not be combined with other payments, but should be shown separately. (4) Vacation and holiday pay should be included in the figures on payrolls, and the normal hours of workers on paid vacation or holiday should be included in the total hours. (5) Other bonuses and allowances should be included, if paid regularly at intervals of two months or less ; the amount of the bonuses included should be proportional to the pay period covered. Computation 14. Prior to computation, figures should be adjusted to conform to paragraphs 12 and 13. 15. Biased data due to the lack of representativeness of the sample should be corrected by proper weighting (based on current employment) of the data b y sex, by industrial branch and, if necessary, by size of establishment group. 16. Missing reports should be estimated to arrive at preliminary figures, final results being released after the missing reports have been received. 17. Average earnings should be computed by sex, by geographical area, and separately for adults and juveniles. 18. I n complement to the main series, average earnings weighted on a fixed base, e.g., pre-war employment, should be computed wherever possible. 19. As resources and facilities permit, percentage changes of payrolls and earnings based on establishment samples should be applied to benchmark data to arrive at more frequent estimates of changes in total wages and salaries and in average earnings. 120 WAGES AND PAYB.OLL STATISTICS 20. If figures are based on information concerning individual workers, their distribution into wage classes should be given. Publication 21. (1) Wherever possible, breakdowns by industries should be published in such a way as to enable a recomputation of the data on the basis of the International Standard Industrial Classification of all Economic Activities adopted by the United Nations. 1 (2) Breakdowns should be published periodically for industries in which as much as 5 per cent, of a country's total employment is found. 22. Where resources and facilities permit, data on payrolls and average earnings derived from a sample of establishments should be compared with, and supplemented by, data derived from other sources with a view to arriving at, and publishing, a consistent and complete set of payrolls and average earnings series. 23. Where resources and facilities permit, information should be published— (a) on amounts deducted at the source (separately for social security contributions, income or wage taxes, trade union dues, etc.); (b) on real purchasing power of gross average earnings ; and (c) on real purchasing power of take-home pay. III. CENSUSES 24. Schedules used for industrial censuses, censuses of manufactures, of production, etc., should provide the necessary information for the computation of average earnings. 25. The schedules should be drafted in such a way t h a t figures on wage earners and salaried employees as defined in paragraph 12 and figures on payrolls as defined in paragraph 13 will become available. 26. (1) Breakdowns by sex, by geographical area, b y age groups (adults and juveniles) and by industries should be published. (2) Breakdowns by industries should show the industries where at least 5 per cent, of the country's total employment is found. (3) Information should be published in enough detail t o enable a recomputation of the figures on the basis of the International Standard Industrial Classification of all Economic Activities adopted by the United Nations. 1 1 For the text of this classification, see footnote to p. 122 et seq. PROPOSED RESOLUTIONS IV. 121 SOCIAL INSURANCE 27. (1) Where appropriate, schedules used in the administration of social insurance schemes should provide the necessary information for the computation of average earnings. (2) If a social insurance scheme provides for a maximum insurable wage, the schedule should call for additional information on payrolls, or wages or salaries of each worker, disregarding the upper wage limit. (3) I n countries where persons above a certain income are not covered by social insurance schemes, studies should be undertaken periodically to assess the importance of such exclusions. (4) Where resources and facilities permit, the time-lag in publication should be reduced as much as possible b y publishing preliminary results based on a sample of returns. V. ESTIMATES OE TOTAL W A G E S AND SALARIES 28. (1) Separate estimates of total wages and of total salaries (including all bonuses) covering all branches of economic activity should be published once a year. (2) The sources, methods and definitions used, their limitations, etc., should be described in publications periodically. 29. To the extent to which estimates are based on average earnings multiplied b y employment figures of various groups, such estimates should be adjusted to benchmark data (taxation returns, industrial censuses, etc.). 30. Where resources and facilities permit, comparisons over a period of years between payroll series based on a sample of establishments and estimates of total wages and salaries should be undertaken in order to arrive a t a series on total wages and salaries published at more frequent intervals. VI. SOCIAL CHARGES 31. (1) At suitable intervals, and preferably once a year, payrolls and average earnings statistics based on establishment reporting should be supplemented by information on social charges paid b y employers. (2) Data on each main charge (expressed as a percentage of payrolls) should be published separately. (3) Information on the compulsory or voluntary character of each charge should be provided. 122 WAGES AND P A Y S C - I i STATISTICS n Resolution on Convention (No. 63) concerning Statistics of Wages and Hours of Work, 1938 The Seventh International Conference of Labour Statisticians, Having been convened by the Governing Body of the International Labour Office, and having met at Geneva from 26 September to 8 October 1949, Having considered the problems raised by wages and payroll statistics, Having further considered the results obtained, after nearly ten years, b y Convention No. 63, Noting t h a t Article 24 of Convention No. 63 reads as follows : " 1 . The Governing Body of the International Labour Office may, after taking such technical advice as it may deem appropriate, communicate to the Members of the Organisation proposals for improving and amplifying the statistics compiled in pursuance of this Convention or for promoting their comparability. " 2. Each Member ratifying this Convention undertakes t h a t it will— (a) submit for the consideration of its competent statistical a u t h o r i t y a n y such proposals communicated t o it b y the Governing Body ; (b) indicate in its annual report upon the application of the Convention the extent to which it has given effect to such proposals, " Adopts, this day of October 1949, the following Resolution : 1. The Conference requests the Governing Body of the International Labour Office to consider the desirability of communicating to States Members appropriate suggestions for the improvement of the statistics compiled in pursuance of the Convention. 2. The Conference recommends t h a t the Governing Body of the International Labour Office, after taking such additional technical advice as it may deem appropriate, should communicate to the States Members the following proposals for the improvement of the statistics compiled in pursuance of the Convention : International Standard Industrial Classification (a) (i) The data to be published on the basis of the United Nations' International Standard Industrial Classification of all Economic Activities. 1 1 The Classification reads as follows : Division 0. Agriculture, Forestry, Hunting, Fishing : 01. Agriculture a n d livestock production. 123 PROPOSED RESOLUTIONS (ii) Averages to be published for Division 1, Divisions 2-3, and Division 4 of that Classification. (in) Averages to be published, wherever possible, for the other non-agricultural Divisions of that Classification. (iv) Details on the differences, if any, between the coverage of published averages and the coverage of the corresponding Division of the Classification to be published periodically. 02. 03. 04. Division 11. 12. 13. 14. 19. Forestry a n d logging. Hunting, trapping and game propagation. Fishing. 1. Mining and Quarrying : Coal mining. Metal mining. Crude petroleum and natural gas. Stone quarrying, clay and sand pits. Non-metallic mining and quarrying not elsewhere classified. Divisions 2-3. Manufacturing : 20. Food manufacturing industries, except beverage industries. 21. Beverage industries. 22. Tobacco manufactures. 23. Manufacture of textiles. 24. Manufacture of footwear, other wearing apparel and made-up textile goods. 25. Manufacture of wood and cork, except manufacture of furniture. 26. Manufacture of furniture a n d fixtures. 27. Manufacture of paper and paper products. 28. Printing, publishing and allied industries. 29. Manufacture of leather a n d leather products, except footwear. 30. Manufacture of rubber products. 31. Manufacture of chemicals and chemical products. 32. Manufacture of products of petroleum and coal. 33. Manufacture of non-metallic mineral products, except products of petroleum and coal. 34. Basic metal industries. 35. Manufacture of metal products, except machinery and transport equipment. 36. Manufacture of machinery, except electrical machinery. 37. Manufacture of electrical machinery, apparatus, appliances and supplies. 38. Manufacturo of transport equipment. 39. Miscellaneous manufacturing industries. Division 4. Construction : 40. Construction. Division 5. Electricity, Gas, Water and Sanitary 51. Electricity, gas a n d steam. 52. W a t e r and sanitary services. Division 61. 62. 63. 64. Servies : 6. Commerce : Wholesale and retail trade. Banks and other financial institutions. Insurance. Real estate. Division 7. Transport, Storage and Communication : 71. Transport. 72. Storage a n d warehousing. 73. Communication. (FootnoteZcontinued overleaf) 124 WAGES AND PAYROLL STATISTICS Definition of Workers and Payrolls (b) (i) Data to cover wage earners u p to and including the working foreman level. (ii) Data to cover salaried employees, wherever possible. (iii) Separate data on the value of payments in kind and on family allowances to be shown, where these are included in the information provided, and details as to the methods of estimating the value of payments in kind to be published periodically. Estimates of Total Wages and Salaries (c) Estimates of total wages and salaries paid per annum in each of the principal industries in mining, manufacturing and construction, and as far as possible in other branches of economic activity, to be compiled and published a t annual intervals, distinguishing as far as possible between wages paid to wage earners and salaries paid to salaried employees. Annual Earnings (d) Statistics showing average annual earnings of workers in each of the principal industries in mining, manufacturing and construction, and as far as possible in other branches of economic activity, to be compiled at intervals of three years, distinguishing as far as possible between wages paid to wage earners and salaries paid to salaried employees. Earnings and Hours by Occupations (e) At least every ten years, statistics of average earnings and of hours actually worked to be compiled for each of the principal occupations in each industry ; these statistics— (i) to show the number of workpeople grouped according to the amount of their earnings ; and, (ii) to be given by sex and by age groups. Division 81. 82. 83. 84. 8. Services : Government services. Community a n d business services. Recreation services. Personal services. Division 9. Activities not Adequately Described : 90. Activities not adequately described. PEOPOSED BBSOLUTIONS 125 m Resolution on Proposed Conventions The Seventh International Conference of Labour Statisticians, Having been convened by the Governing Body of the International Labour Office, and having met at Geneva from 26 September to 8 October 1949, Having considered the results obtained by Convention No. 63 concerning statistics of wages and hours of work, Having further considered the resolution of the Chemical Industries Committee of the International Labour Organisation concerning the standardisation of statistics of industrial injuries and occupational diseases, Adopts, this day of October 1949, the following Resolution : The Conference requests the Governing Body of the International Labour Office to consider the desirability of placing on the agenda of future sessions of the International Labour Conference the subject of Conventions dealing with labour statistics ; the following are among the subjects suggested for consideration : employment, unemployment and labour force ; retail price index numbers ; family living studies ; industrial injuries ; migration. 9 APPENDICES APPENDIX I TEXTS OF CONVENTION No. 63, OF RECOMMENDATION OF THE 5th INTERNATIONAL CONFERENCE OF LABOUR STATISTICIANS, AND OF RESOLUTIONS ADOPTED BY THE 24th SESSION OF THE INTERNATIONAL LABOUR CONFERENCE Convention (No. 63) concerning Statistics of Wages and Hours of Work, Adopted by the International Labour Conference at its 24th Session on 20 June 1938 The General Conference of the International Labour Organisation, Having been convened at Geneva by the Governing Body of the International Labeur Office, and having met in its Twentyfourth Session on 2 June 1938, and Having decided upon the adoption of certain proposals with regard to statistics of wages and hours of work in the principal mining and manufacturing industries, including building and construction, and in agriculture, which is the sixth item on the agenda of the Session, and Having determined that these proposals shall take the form of an international Convention, and Having determined that, although it is desirable that all Members of the Organisation should compile statistics of average earnings and of hours actually worked which comply with the requirements of Part I I of this Convention, it is nevertheless expedient that the Convention should be open to ratification by Members which are not in a position to comply with the requirements of that Part, adopts this twentieth day of June of the year one thousand nine hundred and thirty-eight the following Convention, which may be cited as the Convention concerning Statistics of Wages and Hours of Work, 1938 : PAST I. GENBBAL PROVISIONS Article 1 Each Member of the International Labour Organisation which ratifies this Convention undertakes that— APPENDICES 127 (a) it will compile as required by this Convention statistics relating t o wages and hours of work ; ( b) it will publish t h e d a t a compiled in pursuance of this Convention as promptly as possible and will endeavour t o publish d a t a collected a t quarterly or more frequent intervals during the succeeding quarter and t o publish d a t a collected a t intervals of six or twelve months during t h e succeeding six or twelve months respectively ; and (c) it will communicate the d a t a compiled in pursuance of this Convention t o t h e International Labour Office a t t h e earliest possible date. Artide 2 1. Any Member which ratifies this Convention may, by a declaration appended t o its ratification, exclude from its acceptance of t h e Convention— (a) a n y one of P a r t s I I , I I I , or I V ; or (b) P a r t s I I and I V ; or (c) P a r t s I I I and IV. 2. Any Member which has made such a declaration m a y a t any time cancel t h a t declaration b y a subsequent declaration. 3. Every Member for which a declaration made under paragraph 1 of this Article is in force shall indicate each year in its annual report upon t h e application of this Convention the extent to which a n y progress has been made with a view t o the application of t h e P a r t or P a r t s of the Convention excluded from its acceptance. Añide 3 Nothing in this Convention imposes any obligation t o publish or to reveal particulars which would result in the disclosure of information relating t o any individual undertaking or establishment. Article 4 1. E a c h Member which ratifies this Convention undertakes t h a t its competent statistical authority shall, unless it has already obtained the information in some other way, make enquiries relating either t o all, or t o a representative part, of t h e wage earners concerned, in order to obtain t h e information required for t h e purpose of t h e statistics which it has undertaken t o compile in accordance with this Convention. 2. Nothing in this Convention shall be interpreted as requiring any Member t o compile statistics in cases in which, after enquiries made in the manner required by paragraph 1 of this Article, it is found impracticable t o obtain the necessary information without the exercise of compulsory powers. P A K T I I . STATISTICS O F A V E R A G E EARNINGS AND O F H O U R S ACTUALLY W O R K E D EN M I N I N G AND MANUFACTURING I N D U S T R I E S Artide 5 1. Statistics of average earnings and of hours actually worked shall be compiled for wage earners employed in each of the principal 128 WAGES AND PAYBOLL STATISTICS mining and manufacturing industries, including building and construction. 2. The statistics of average earnings and of hours actually worked shall be compiled on the basis of data relating either to all establishments and wage earners or to a representative sample of establishments and wage earners, 3. The statistics of average earnings and of hours actually worked shall— (a) give separate figures for each of the principal industries ; and ( b) indicate briefly the scope of the industries or branches of industry for which figures are given. Article 6 The statistics of average earnings shall include— all cash payments and bonuses received from the employer by the persons employed ; (b) contributions such as social insurance contributions payable by the employed persons and deducted by the employer ; and (c) taxes payable by the employed persons to a public authority and deducted by the employer. (a) Article 7 In the case of countries and industries in which allowances in kind, for example in the form of free or cheap housing, food or fuel, form a substantial part of the toial remuneration of the wage earners employed, the statistics of average earnings shall be supplemented by particulars of such allowances, together with estimates, so far as practicable, of their money value. Article 8 The statistics of average earnings shall be supplemented, so far as practicable, by indications as to the average amount of any family allowances per person employed in the period to which the statistics relate. Article 9 1. The statistics of average earnings shall relate to average earnings per hour, day, week or other customary period. 2. Where the statistics of average earnings relate to average earnings per day, week or other customary period, the statistics of actual hours shall relate to the same period. Article 10 1. The statistics of average earnings and of hours actually worked, referred to in Article 9, shall be compiled once every year and where possible at shorter intervals. 2. Once every three years and where possible at shorter intervals the statistics of average earnings and, so far as practicable, the statistics APPENDICES 129 of hours actually worked shall be supplemented b y separate figures for each sex a n d for adults a n d juveniles ; provided t h a t it shall not be necessary t o compile these separate figures in t h e case of industries in which all b u t a n insignificant number of t h e wage earners belong t o t h e same sex or age group, or t o compile t h e separate figures of hours actually worked for males a n d females, or for adults and juveniles, in t h e ease of industries in which t h e normal hours of work do n o t v a r y b y sex or age. Article 11 Where t h e statistics of average earnings a n d of hours actually worked relate n o t t o t h e whole country b u t t o certain districts, towns or industrial centres, these districts, towns or centres shall, so far as practicable, be indicated. Article 12 1. Index numbers showing t h e general movement of earnings per hour a n d where possible per day, week or other customary period shall be compiled a t as frequent and as regular intervals as possible on t h e basis of t h e statistics compiled i n pursuance of this P a r t of this Convention. 2. I n compiling such index numbers d u e account shall be taken, vnier alza,, oí -the r e l a t i v e i m p o r t a n c e ox t l i e d i f f e r e n t incln¡9trie9. 3. I n pubiïshing such index numbers indications shall be given as t o t h e methods employed in their construction. PABT III. STATISTICS O F T I M E R A T E S O F W A G E S AND OF NORMAL H O U R S OF W O R K I N M I N I N G AND MANUFACTURING I N D U S T R I E S Article 13 Statistics of time rates of wages and of normal hours of work of wage earners shall be compiled for a representative selection of t h e principal mining a n d manufacturing industries, including building and construction. Article 14 1. The statistics of time rates of wages a n d of normal hours of work shall show t h e rates a n d hours— (a) fixed by or in pursuance of laws or regulations, collective agreements or arbitral awards ; (b) ascertained from organisations of employers a n d workers, from joint bodies, or from other appropriate sources of information, in cases where rates a n d hours are n o t fixed b y or in pursuance of laws or regulations, collective agreements or arbitral awards. 2. The statistics of time rates of wages and of normal hours of work shall indicate t h e nature and source of t h e information from which t h e y have been compiled and whether i t relates t o rates or hours fixed b y or in pursuance of laws or regulations, collective agreements or arbitral awards, or t o rates or hours fixed b y arrangements between employers and wage earners individually. 130 WAGES AND PAYROLL STATISTICS 3. When rates of wages are described as minimum (other than statutory minimum) rates, standard rates, typical rates, or prevailing rates, or by similar terms, the terms used shall be explained. 4. " Normal hours of work ", where not fixed by or in pursuance of laws or regulations, collective agreements or arbitral awards, shall be taken as meaning the number of hours, per day, week or other period, in excess of which any time worked is remunerated at overtime rates or forms an exception to the rules or custom of the establishment relating to the classes of wage earners concerned. Article 15 1. The statistics of time rates of wages and of normal hours of work shall give— (a) at intervals of not more than three years, separate figures for the principal occupations in a wide and representative selection of the different industries ; and (b) at least once a year, and if possible at shorter intervals, separate figures for the main occupations in the most important of these industries. 2. The data relating to time rates of wages and of normal hours of work shall be presented, so far as practicable, on the basis of the same occupational classification. 3. Where the sources of information from which the statistics are compiled do not indicate the separate occupations to which the rates or hours apply, but fix varying rates of wages or hours of work for other categories of workers (such as skilled workers, semi-skilled workers and unskilled workers) or fix normal hours of work by classes of undertakings or branches of undertakings, the separate figures shall be given according to these distinctions. 4. Where the categories of workers for which figures are given are not separate occupations, the scope of each category shall, in so far as the necessary particulars are given in the sources of information from which the statistics are compiled, be indicated. Article 16 Where the statistics of time rates do not give the rates per hour but give rates per day, week, or other customary period— (a) the statistics of normal hours of work shall relate to the same period ; and (b) the Member shall communicate to the International Labour Office any information appropriate for the purpose of calculating the rates per hour. Article 11 Where the sources of information from which the statistics are compiled give separate particulars classified by sex and age, the statistics of time rates of wages and of normal hours of work shall give separate figures for each sex and for adults and juveniles. Article 18 Where the statistics of time rates of wages and of normal hours of work relate not to the whole country but to certain districts, towns APPENDICES 131 or industrial centres, these districts, towns or centres shall, so far as practicable, be indicated. Artide 19 Whore the sources of information from which the statistics of time rates and of normal hours of work are compiled contain such particulars, the statistics shall at intervals not exceeding three years indicate— (a) the scale of any payment for holidays ; (b) the scale of any family allowances ; (c) the rates or percentage additions to normal rates paid for overtime ; and (d) the amount of overtime permitted. Article 20 In the case of countries and industries in which allowances in kind, for example in the form of free and cheap housing, food or fuel, form a substantial part of the total remuneration of the wage earners employed, the statistics of time rates of wages shall be supplemented by particulars of such allowances, together with estimates, so far as practicable, of their money value. Article 21 1. Annual index numbers showing the general movement of rates of wages per hour or per week shall be compiled on the basis of the statistics compiled in pursuance of this Part of this Convention, supplemented, where necessary, by any other relevant information which may be available (for example, particulars as to changes in piecework rates of wages). 2. Where only an index number of rates of wages per hour or only an index number of rates of wages per week is compiled, there shall be compiled an index number of changes in normal hours of work constructed on the same basis. 3. In compiling such index numbers due account shall be taken, inter alia, of the relative importance of the different industries. 4. In publishing such index numbers indications shall be given as to the methods employed in their construction. PAST IV. STATISTICS OT WAGES AND HOURS OW WOBK m AGRICULTURE Article 22 1. Statistics of wages shall be compiled in respect of wage earners engaged in agriculture. 2. The statistics of wages in agriculture shall— (a) be compiled at intervals not exceeding two years ; (b) give separate figures for each of the principal districts ; and (c) indicate the nature of the allowances in kind (including housing), if any, by which money wages are supplemented, and, if possible, an estimate of the money value of such allowances. 132 WAGES AND PAYROLL STATISTICS 3. The statistics of wages in agriculture shall be supplemented by indications as to— (a) the categories of agricultural wage earners to which the statistics relate ; ( b) the nature and source of the information from which they have been compiled ; (c) the methods employed in their compilation ; and (d) so far as practicable, the normal hours of work of the wage earners concerned. PART V. MISCELLANEOUS PROVISIONS Article 23 1. Any Member the territory of which includes large areas in respect of which, by reason of the difficulty of creating the necessary administrative organisation and the sparseness of the population or the stage of economic development of the area, it is impracticable to compile statistics complying with the requirements of this Convention may exclude such areas from the application of this Convention in whole or in part. 2. Each Member shall indicate in its first annual report upon the application of this Convention submitted under Article 22 of the Constitution of the International Labour Organisation any areas in respect of which it proposes to have recourse to the provisions of this Article and no Member shall, after the date of its first annual report, have recourse to the provisions of this Article except in respect of areas so indicated. 3. Each Member having recourse to the provisions of the present Article shall indicate in subsequent annual reports any areas in respect of which it renounces the right to have recourse to the provisions of this Article. Article 24 1. The Governing Body of the International Labour Office may, after taking such technical advice as it may deem appropriate, communicate to the Members of the Organisation proposals for improving and amplifying the statistics compiled in pursuance of this Convention or for promoting their comparability. 2. Each Member ratifying this Convention undertakes that it will— (a) submit for the consideration of its competent statistical authority any such proposals communicated to it by the Governing Body ; (b) indicate in its annual report upon the appHcation of the Convention the extent to which it has given effect to such proposals. P A 3 T VI. FINAL PROVISIONS Article. 25 The formal ratifications of this Convention shall be communicated to the Director-General of the International Labour Office for registration. APPENDICES 133 Article 26 1. This Convention shall be binding only upon Members of the International Labour Organisation whose ratifications have been registered with the Director-General. 2. I t shall come into force twelve months after the date on which the ratifications of two Members have been registered with the DirectorGeneral. 3. Thereafter, this Convention shall come into force for any Member twelve months after the date on which its ratification has been registered. Article 27 As soon as the ratifications of two Members of the International Labour Organisation have been registered, the Director-General of the International Labour Office shall so notify all the Members of the International Labour Organisation. He shall likewise notify them of the registration of ratifications which may be communicated subsequently by other Members of the Organisation. Article 28 1. A Member which has ratified this Convention may denounce it after the expiration of ten years from the date on which the Convention first comes into force, by an act communicated to the Director-General of the International Labour Office for registration. Such denunciation shall not take effect until one year after the date on which it is registered. 2. Each Member which has ratified this Convention and which does not, within the year following the expiration of the period of ten years mentioned in the preceding paragraph, exercise the right of denunciation provided for in this Article, will be bound for another period of ten years and, thereafter, may denounce this Convention at the expiration of each period of ten years under the terms provided for in this Article. Article 29 At the expiration of each period of ten years after the coming into force of this Convention, the Governing Body of the International Labour Office shall present to the General Conference a report on the working of this Convention and shall consider the desirability of placing on the agenda of the Conference the question of its revision in whole or in part. Article 30 1. Should the Conference adopt a new Convention revising this Convention in whole or in part, then, unless the new Convention otherwise provides, (a) the ratification by a Member of the new revising Convention shall if so jure involve the immediate denunciation of this Convention, notwithstanding the provisions of Article 28 above, if and when the new revising Convention shall have come into force ; 134 WAGES AND PAYBOLL STATISTICS (b) as from the date when the new revising Convention comes into force this Convention shall cease to be open to ratification by the Members. 2. This Convention shall in any case remain in force in its actual form and content for those Members which have ratified it but have not ratified the revising Convention. Article 31 The French and English texts of this Convention shall both be authentic. Proposed Recommendation Suggested to the international Labour Conference by the Stîi International Conference of Labour Statisticians (Geneva, October 1937) Whereas the Convention on Statistics of Wages and Hours of Work is necessarily limited in scope to statistics which are sufficiently developed to permit of a substantial number of Members entering into definite obligations in respect thereof; and Whereas it is of special importance that every effort should be made further to improve statistics of wages and hours of work ; The Conference, with a view to completing the provisions of the Statistics of Wages and Hours Convention, recommends that each Member should give effect to the following provisions : 1. (1) Statistics of time rates of wages and of normal hours of work and/or statistics of average earnings and of hours actually worked should be compiled in respect of wage earners engaged in transport, commercial or trading establishments, and administrative services. (2) Statistics of salaries and hours should be compiled for salaried employees, excluding persons holding positions of management. (3) These statistics should be compiled as far as possible at the intervals specified in the Statistics of Wages and Hours Convention in respect of statistics relating to persons to whom that Convention applies. 2. (1) At least every ten years, statistics of average earnings and of hours actually worked should be compiled for each of the principal occupations in each industry. (2) These statisticsfa^ should show the number of workpeople grouped according to the amount of their earnings ; and (b) should be given by sex and by age groups. 3. (1) Statistics showing the aggregate amount of wages and salaries paid per annum in each of the principal industries in mining and manufacture, including building and construction and, as far as possible, for other branches of economic activity, should be compiled regularly and where possible at annual intervals, and distinguishing as far as possible between wages paid to wage earners and salaries paid to salaried employees. (2) An approximate indication should be given of the extent to which the returns are representative of all employed persons. 4. Statistics showing average annual earnings of workers in each of the principal industries in mining and manufacture, including building APPENDICES 135 and construction, and as far as possible for other branches of economic activity, should be compiled at intervals of three years, distinguishing as far as possible between wages paid to wage earners and salaries paid t o salaried employees. 5. The statistics of time rates of wages should, so far as possible, be accompanied b y indications as to the number of workers covered, as well as b y any information which m a y be available as to the relation between t h e time rates of wages and actual earnings. 6. The statistics compiled in pursuance of this Recommendation should be published and communicated to the International Labour Office as prescribed b y the Statistics of Wages and Hours Convention for the statistics compiled in pursuance thereof. 1 Resolutions Adopted by the Twenty-fourth Session of the International Labour Conference R E S O L U T I O N CONCERNING STATISTICS OE W A G E S AND H O U R S OF W O R K IN AGRICULTURE Whereas the Fifth Conference of Official Labour Statisticians, in its report of 2 October 1937, " considered it very desirable t h a t in view of the special problems connected with the compilation of statistics of hours of work, wages and other factors in the remuneration of agricultural workers, these questions should be discussed a t a special Conference of Labour Statisticians to be held in the near future " ; and Whereas the International Labour Conference a t its Twenty-fourth Session has adopted a Draft Convention on statistics of wages and hours of work in the principal mining and manufacturing industries and in agriculture ; The Conference requests t h e Governing Body of the International Labour Office to consider the advisability of convening at an early date a special technical conference t o examine the methods of compiling statistics of t h e remuneration and hours of work of persons employed in agriculture, with a view t o the improvement and amplification of the statistics to be compiled in pursuance of the Convention. R E S O L U T I O N CONCERNING STATISTICS O F R E A L W A G E S Whereas t h e utility of the statistics of wages and hours of work to be compiled in pursuance of the provisions of the Draft Convention on statistics of wages and hours of work in the principal mining and manufacturing industries and in agriculture would be enhanced if information were available as t o the real value of wages, as measured b y their purchasing power, The Conference urges the International Labour Office t o encourage the compilation and publication of the statistical d a t a required for international comparisons of real wages and t o continue and extend its studies on this subject. 1 Paragraph 1 of this t e x t and certain provisions of the other paragraphs were outside the scope of the subject included in the agenda of the 24th Session of the International Labour Conference (June 1938) and could therefore not be considered by it. The Conference adopted a series of Resolutions, the texts of which follow. 136 WAGES AND PAYEOLL STATISTICS RESOLUTION CONCERNING SUPPLEMENTARY STATISTICS OK WAGES AND HOURS OF WOEK Whereas the Fifth Conference of Official Labour Statisticians prepared a recommendation concerning statistics of wages and hours of work supplementing the provisions of the proposed Draft Convention on statistics of wages and hours of work in the principal mining and manufacturing industries and in agriculture, and Whereas Article 24 of the Draft Convention provides that the Governing Body may communicate to the Members of the Organisation proposals for improving and amplifying the statistics compiled in pursuance of this Convention and that each Member shall indicate in its annual report upon the application of the Convention the extent to which it has given effect to such proposals, The Conference, by this Resolution, requests the Governing Body to arrange that the proposals set forth on pages 110 and 112 of the greyblue report and appended hereto be examined in accordance with the provisions of Article 24 of the Convention and that in the meantime this Resolution, together with the appendix, be communicated to the various Governments at the earliest possible date. 1 Appendix 1. (1) At least once every ten years, the statistics of average earnings and of hours actually worked relating to wage earners employed in the principal mining and manufacturing industries, including building and construction, should give separate figures for each of the principal occupations in each industry. (2) These statistics— (a) should show the number of workpeople grouped according to the amount of their earnings ; and (b) should be given by sex and by age groups. 2. (1) Statistics showing the aggregate amount of wages paid per annum in each of the principal industries in mining and manufacture, including building and construction, should be compiled regularly and where possible at annual intervals. (2) An approximate indication should be given of the extent to which the returns are representative of all employed persons. 3. Statistics showing average annual earnings of workers employed in each of the principal industries in mining and manufacture, including building and construction, should be compiled at intervals not exceeding three years. 4. The statistics of time rates of wages should so far as possible be accompanied by— (a) indications as to the number of workers covered, and (b) any information which may be available as to the relation between the time rates of wages and actual earnings. 1 On 2 February 1939 the Governing Body instructed the International Labour OÉSce t o communicate t h e proposals t o Governments for their information, and noted t h a t action should be taken in accordance with Article 24 of the Convention in due course after t h e coming into force of the Convention. The Resolution was communicated t o Governments on 18 March 1939. APPENDIX II SUMMARY OF STATISTICS OF WAGES AND HOURS OF WORK PUBLISHED BY COUNTRIES WHICH HAVE RATIFIED CONVENTION No. 63 This appendix contains a summary statement of the statistics of wages and hours of work published by countries which have ratified the whole or part of Convention No. 63. The materials are limited to those called for under Part I I (Earnings) and Part I I I (Rates). In cases where a country has excluded one part from ratification, the data given here do not cover the excluded parts, even though the country may publish certain statistics under this category ; thus, earnings statistics are not shown from New Zealand, which excluded Part I I (Earnings) from its ratification. Furthermore, available information on wages in agriculture is described in Chapter VII and is not included here. It should be noted that most of the material included in this appendix appears also in the Year Booh of Labour Statistics, 1947-48. The countries are listed in alphabetical order. The following information is provided under the name of each country : 1. Date of registration of ratification and the parts excluded from ratification. 2. List of main industrial branches or occupations for which separate information is published. In order to save space, the actual statistics for each industry or occupation are not reproduced here ; they are available, however, for selected industries and occupations in the Year Book of Labour Statistics, 1947-48. 3. General averages for the three main branches of economic activity : mining, manufacturing, building and construction, as well as for totals, though not called for under the Convention, are given in order to throw light upon the problems involved in extending the Convention to include statistics for these main groups and in defining them in approximately uniform terms. ATJSTBALIA 1. Australia's ratification was registered on 5 September 1939 ; Part I I (Earnings) was excluded from ratification. 2. Averages are based on data for 3,948 male and 308 female occupations ; the industrial breakdown given is as follows : 138 WAGES AND PAYROLL STATISTICS Adult males Adult females Wood, furniture, etc. Engineering, metal works, etc. Food, drink, etc. Clothing, textiles, etc. Books, printing, etc. Other manufacturing Building Mining Rail and tram services Other land transport Shipping, etc. * Pastoral, agricultural, etc. * Domestic, hotels, etc. Miscellaneous Food, drink, etc. Clothing, textiles, etc. All other manufacturing Domestic, hotels, etc. Shop assistants, clerks, etc. Total Total 3. Australia publishes rates of wages per hour a n d per week a n d normal hours of work per week, both in absolute amounts and in index numbers (1911 or 1914 = 100). Separate figures are given for adult males, adult females and total. The available information is summarised in t h e following five tables : TABLE I. AUSTRALIA : HOURLY WAGE HATES AND INDEX NUMBEBS, ADULT MALES (in shillings and pence ; 1914 — 100) Mining Dates s. 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 D i ,0. d. Index Manufacturing s. d. Index Building s. d. Total (agriculture, mining, manufacturing, construction, commerce, transport, services) Index s. 2 2 2 2 2 2 2 2 2 2 3 3 d. Index 0.75 1.75 2.50 3.50 5.25 8.00 8.75 8.75 9.00 11.25 2.25 10.50 177.9 184.0 190.3 197.3 209.8 229.5 235.2 235.5 236.5 252.9 1 Information refers to weekly rates only and not to normal hours of work and hourly rates. 139 APPENDICES TABLE n . AUSTBALIA : H O U B L Y WAGE B A T E S AND I N D E X NUMBEBS, ADULT EEMALES (in shillings and pence ; 1914 = s. 1937 : 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 TABLE m . Total (manufacturing, commerce transport, services) Manufacturing Dates d. 100) Index s. d. 1 1.50 1 1.75 1 2.25 1 2.75 1 3.75 1 5.50 1 6.75 1 7.50 1 7.50 1 9.00 1 11.75 2 6.00 Doc AUSTRALIA : W E E K L Y WAGE B A T E S AND I N D E X Index 201.7 208.4 214.5 222.0 238.7 264.2 280.6 295.2 295.8 314.9 NUMBERS, ADULT MALES (in shillings Mining Dates 1937 : D o c . . . . 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 and pence ; 1911 s. d. Index 108 109 111 115 123 126 126 127 134 2 1 10 1 9 6 11 2 6 211.1 214.2 218.2 224.5 241.5 246.8 247.7 248.2 262.4 = 100) Building Manufacturing s. d. Index s. d. Index 104 6 203.9 106 5 207.6 109 11 214.5 116 11 228.2 127 3 248.4 128 11 251.6 129 1 251.8 130 11 255.5 141 10 276.8 Total (agriculture, mining, manufacturing construction, commerce, transport, services) s. d. Index 90 93 95 98 104 115 119 119 120 128 4 5 3 1 3 8 5 6 4 6 176.3 182.3 185.8 191.3 203.4 225.7 232.9 233.2 234.8 250.7 140 WAGES AND PAYROLL STATISTICS TABLE IV. AUSTRALIA : WEBKLY WAGE RATES AND INDEX NUMBERS, ADULT FEMALES (in shillings and pence ; 1914 = 100) s. 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Total (manufacturing, commerce, transport, services) Manufacturing Dates d. Index Dec. s. d. Index 49 51 52 54 58 64 68 71 72 76 8 3 8 3 2 4 4 11 0 9 182.8 188.7 193.8 199.6 214.1 236.8 251.6 264.7 265.0 282.4 TABLE V. AUSTRALIA : WEEKLY NORMAL HOURS OF LABOUR AND INDEX NUMBERS (1914 = 100) Mining Manufacturing Building Dates Maies Hours 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Females Males Females Males Index Hofirs jindex Hours ndax Hours Index Hours D ec. 40.70 43.42 Females Total (mining, manufacturing.construction, commerce, transport, services) Males Index Hours Index Hours 45.03 44.82 44.29 44.04 43.83 43.65 43.62 43.61 43.59 43.57 Index 92.0 91.6 90.5 90.0 89.6 89.2 89.1 89.1 89.1 89.0 Females Hours Index 44.52 44.44 44.36 44.15 44.03 44.03 44.03 44.03 44.03 44.03 90.7 90.5 90.4 90.0 89.7 89.7 89.7 89.7 89.7 89.7 141 APPENDICES No average for manufacturing as a whole is published. The annual publication of the Commonwealth Bureau of Census and Statistics entitled Labour Report contains rates for each occupation in each of t h e six capital cities of Australia. CANADA 1. Canada's ratification was registered on 6 April 1946 ; no P a r t was excluded. 2. The breakdown b y industries used is as follows : Earnings and actual hours Manufacturing Durable goods Non-durable goods Electric light and power Logging Mining Communications Transportation Construction and maintenance Services Trade Total Finance Index numbers of rates Manufacturing Logging Mining Transportation and communications Construction Service Total Grand total 3. The published information is summarised in the four following tables : TABLE I. CANADA : AVEBAGE HOUBLY EARNINGS (in cents) Mining Dates Building Coal Metallic ores 93.8 95.9 110.4 123.5 85.0 87.4 99.4 110.2 69.4 70.0 80.3 91.3 80.9 83.4 91.0 100.9 . . . . 124.8 124.9 126.8 130.6 108.3 111.2 114.6 115.9 89.0 92.3 94.6 97.2 99.1 100.0 104.1 105.7 1948 : M a r . . . . June . . . 127.3 116.8 98.2 108.9 1945 1946 1947 1948 1948 : M a r . June Sept. Dec. 10 Manufacturing . . . . . . . . Total (mining, manufacturing, construction, transportation, services) 142 WAGES AND PAYROLL STATISTICS TABLE n . CANADA : AVEEAGE WEEKLY SALARIES AND WAGES (in dollars) Dates Mining Manufacturing Total 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 . . . . . . . . . . . . . 1948 : M a r Jun e Sep Dec 1949 : M a r Total (mining, manufacturing construction, commerce, transportation, (Building) services) Construction and maintenance 28.68 23.11 34.79 36.09 38.05 38.60 39.21 43.03 48.77 29.17 31.50 32.66 32.65 32.51 36.57 40.91 26.45 29.64 29.74 30.08 31.53 34.86 38.31 31.20 34.85 34.12 34.03 33.97 37.41 41.41 28.56 30.78 31.84 31.99 32.38 36.15 40.11 48.24 49.33 51.04 47.15 39.60 41.17 42.85 42.28 36.92 38.78 40.35 38.65 39.08 40.84 44.03 39.56 39.04 40.48 41.80 41.10 51.39 44.54 42.03 45.00 43.35 ... Jun e TABLE m . CANADA : AVEEAGE HOUES PEE WEEK * Mining Dates Manufacturing Building Coal Metallic ores 40.2 40.2 36.9 38.2 45.8 45.1 44.4 44.7 44.3 42.7 42.5 42.2 40.4 38.7 39.2 39.9 . . . . 38.6 38.1 39.0 31.2 44.2 45.0 45.4 41.8 41.6 42.0 43.0 40.6 37.6 40.0 41.8 35.6 1949 : M a r . . . . June . . . 36.1 45.5 42.9 40.5 1945 1946 1947 1948 1948 : M a r . June Sept. Dec. . . . . . . . . Total (mining, manufacturing, construction, transportation, services) 143 APPENDICES TABLE IV. CANADA : INDEX NUMBEBS OE WAGE KATES (AVERAGE STRAIGHT-TIME EARNINGS) (1939 = 100) Dates 1937 : Oct. . . . 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Total (mining, maManufacturing Construction nufacturing, construction, transportation, services) Mining IOO'.O 102.5 111.2 116.6 123.7 134.8 136.5 140.6 161.7 182.1 i 96.1 99.2 Í00.0 104.3 115.2 125.5 136.8 141.4 146.5 161.5 183.3 206.41 96.9 99.2 100.0 104.5 111.6 118.6 127.7 129.6 131.1 143.9 155.0 176.3 1 96.7 99.6 100.0 103.9 113.1 122.5 133.7 137.9 141.8 155.2 173.7 196.3 ! ' Preliminary figures. Index numbers of average weekly salaries and wages are published on the basis 1 J u n e 1941 = 100. The yearly publication of the Department of Labour entitled Wage Bates and Hours of Labour in Canada contains rates (straight-time average earnings) for each occupation in each province and each major city. I t also contains information on normal hours of work of male workers for mining, for construction and for various manufacturing branches ; no average for manufacturing as a whole is published. DENMARK 1. Denmark's ratification was registered on 22 J u n e 1939 ; P a r t I I I (Rates) was excluded from ratification. 2. Hourly (straight-time) earnings for each of the following occupations are published, separately for Copenhagen and for the remainder of the country : Men, skilled Millers Bakers Chocolate workers Dairy worker Butchers (sausage makers) Cigar workers Chewing tobacco workers Rope makers Trimmings and lace workers Dyers Men, skilled (contd.) Tailors (made to measure workers) Tailors (in industry) Cutters (trimmers) Hatters Glove makers Pur workers Shoemakers Sail makers Pavers Carpenters (building) 144 WAGES AND PAYROUL STATISTICS Men, skilled (contd.) Bricklayers Joiners (building) Glaziers Tinkers Electricians Painters Stucco workers Flour mill builders Linoleum layers Ships' carpenters Joiners (on machine work) Gilt cornice workers Joiners (furniture making) Brush makers Wood sculptors Coopers Pattern makers Wood turners Basket makers Saddlers, harness makers Piano workers Ships' joiners Tanners Fur trimmers Leather and travelling equipment workers Stone dressers Glass workers Glass grinders Ceramic workers Gold, silver and electroplate workers Blacksmiths and fitters Metal grinders Metal printers Coppersmiths Moulders Hook makers Coil winders Cartwrights Riggers Bookbinders Type setters Lithographic artists Photo-engravers Men, unskilled (contd.) Chewing tobacco workers Workers in bakeries Workers in dairies and condensed milk factories Workers in canning industry Workers in sugar factories Others in the food industries Textile workers Dyers Rope-walk labourers Unskilled workers in the clothing industry E a r t h and concrete workers Bricklayers' helpers Pavement workers Tile workers Other workers Workers in the brush industry Woodworkers Others in the wood industry Tannery workers Leather and travelling equipment workers Cement workers Glass workers Workers in stone-dressing establishments Workers in the ceramic industries Concrete workers Workers in gravel pits, etc. Lime and brick workers Others in the stone, clay and glass industries Total skilled workers Gold, silver and electroplate workers Others in the iron and metal industries Workers in gas works and electricity undertakings Insulation fitters Workers in paint and lacquer work Workers in rubber plants Workers in oil industry Workers in sulphuric acid works Workers in soap and soda works Workers in roofing board works Others in the chemical industry Men, unskilled Brewery workers, etc. Chocolate workers Flour mill workers Slaughterhouse workers Cigar workers Cigarette workers Pipe tobacco workers Paper workers Paper goods and paper box workers Printing workers Workers in lithographic establishments Workers in reproduction establishments Others in the graphic industry Barbers Pedicurists Gardeners APPENDICES Men, unskilled (contd.) Workers in the " beauty " industryStoreroom workers Dockers Others in commerce and transport Gardener's helpers Controllers and operators Telephone workers Other unskilled workers Weekly paid workers Horse drivers Automobile drivers Stokers Messengers Watchmen Total unskilled workers Women Brewery workers, etc. Chocolate workers Flour mill workers Slaughterhouse workers Cigar workers, skilled Cigar workers, unskilled Cigarette workers Pipe tobacco workers Chewing tobacco workers Workers in bakeries and biscuit factories Workers in dairies and condensed milk factories Workers in sugar factories Others in the food industries 145 Women (contd.) Others in the clothing trade Workers in the brush industry Sawmill workers, etc. Others in the wood industry Tannery workers Leather and travelling equipment workers Workers in the ceramic industries Workers in lime and brick works Workers in glass works Others in the stone, clay and glass industries Gold, silver and electroplate workers Others in the iron and metal industry Workers in paint and lacquers factories Workers in rubber factories Workers in the oil industry Workers in soap and soda factories Others in the chemical industry Paper workers Paper goods and paper box workers Workers in bookbinding establishments Printing workers Workers in lithographic establishments Workers in reproduction establishments Ladies' hairdressers Workers in bathing establishments Laundry workers Others in the " beauty " industry Workers in commerce and transport Rope-walk labourers Trimmings and lace workers Workers in dyeing establishments Textile workers Telephone workers Cleaners Total women Seamstresses H a t workers Workers in sack factories Shoe workers Supervisory personnel Foremen Managers (female) 3. Denmark, a t quarterly intervals, publishes hourly straight-time earnings for the above series of occupations. No d a t a on daily or weekly earnings or on hours of work are published. N o mining occupations are included in t h e list and no averages are computed for t h e group manufacturing and for the group building. Index numbers of earnings and of hours of work are not available. The following table summarises the available information : 146 WAGES AND P A Y 3 0 L L STATISTICS DENMARK : AVERAGE EARNINGS PEE HOUR (in ore) ManuMining factur- Building ing Dates Total (manufacturing, construction, commerce, transport, etc.) Males Males skilled unskilled Females Total 1937. 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 158 166 172 191 203 213 227 238 256 286 304 330 133 140 146 161 175 182 199 212 224 247 259 278 88 94 96 108 119 123 130 140 155 174 186 202 135 142 147 163 176 184 198 210 225 249 263 284 1 9 4 8 : 1st q u a r t e r 2nd „ 3rd „ 4th „ 317 328 333 342 267 280 282 284 194 201 204 207 273 285 288 292 ' 1 9 4 9 : 1st quarter 2nd „ Yearly averages are also published on fixed weights (using t h e number of workers covered b y t h e unemployment insurance schemes as of 1 J u l y 1936 as weights) for t h e following categories of workers : skilled males, unskilled males, males total, females, a n d t o t a l ; figures are published separately for Copenhagen, for the rest of t h e country and for the whole country. EGYPT 1. E g y p t ' s ratification was registered on 5 October 1940 ; P a r t s I I I (Rates) a n d I V (Wages and Hours in Agriculture) were excluded from ratification. 2. The breakdown b y industries used for t h e presentation of weekly earnings and weekly hours of work is as follows : Industries connected with vegetable foods Industries connected with animal foods (includes restaurants) Industries connected with drinks (includes cafés and bars) Manufacture oí tobacco Extraction of oils and fats Chemical industries Manufacture of paper and articles in paper Printing, bookbinding and photography Manufacture of rubber Manufacture of scientific instruments, jewellery and of other precious articles 147 APPENDICES Manufacture of leather and fur Textiles industries Manufacture of clothing Hairdressing, beautifying and cleaning of clothes Metallurgy and manufacture of metal articles Manufacture of machines and machine tools Woodworking, working in cane, rattans and cork Manufacture of means of transport Manufacture connected with mineral fuel Generation and distribution of power, light, heat, etc., and water distribution Preparation of materials of construction, ceramics Contractors of building Construction and maintenance of roads and bridges Contractors of public works Exploitation of mines Exploitation of quarries Exploitation of salines Other industries (toys, firearms, ivory working, etc.) Various industries Total 3. Information available on weekly earnings a n d actual hours of work per week is summarised in tables I and I I ; no averages for manufacturing industry as a whole are published ; no index numbers h a v e been computed and published as yet. TABLE I. EGYPT : AVERAGE WEEKLY EARNINGS (in Dates 1942 : J u l y 1943 : J a n . July 1944 : J a n . July 1945 : J a n . Mining * . . . . . . . . July . 1946 : J a n . . July . 1947 : J a n . . July . 136 139 86 146 145 167 170 210 154 328 266 1948 : J a n . . July . 1949 : J a n . . 1 Excluding quarries and salines. piastres) Manufacturing Total (mining, Contractors manufacturing, of building construction, services) 132 143 140 166 95 82 90 98 115 120 115 123 125 134 132 172 148 WAGES AND P A Y 3 0 L L STATISTICS TABLE H. EGYPT : AVERAGE HOTTES WORKED PER Mining > Dates 1942 : J u l y 1943 : J a n . July 1944 : J a n . July 1945 : J a n . July 1946 : J a n . July 1947 : J a n . July 1948 : J a n . July 1949 : J a n . . . . . . . . . 1 . . . . . . . . Manufacturing 46 50 46 52 52 53 50 47 51 49 51 Contractors of building 44 52 48 52 WEEK Total (mining, manufacturing, construction, services) " 55 52 51 50 51 50 51 51 51 52 51 51 'Excluding quarries and salines. FINLAND 1. Finland's ratification was registered on 8 April 1947 ; P a r t I I I (Rates) was excluded from ratification. 2. The industrial blanches for which information on average hourly earnings is published (in absolute amounts) are as follows : Mining Iron Other metals Machine workshops Quarries and stone works Kilns Cement China and earthenware Household glass and bottles Window glass Rubber articles Wool Cotton Flax Knitting and silk Paper paste and cardboard Sulphitic cellulose Sulphatic cellulose Paper articles Other paper industries 149 APPENDICES Sawmills Veneering Spools Planing, wooden houses and boxes Sugar refining 3. The information available on average hourly earnings in mining is reproduced in table I. TABLE I. U N L A N D : AVEBAGE EARNINGS PEB HOtJB IN MINING (in F. marks) Mining Dates ' Males 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Females . . . . . . . 1948 : 1st quarter 2nd 3rd 4th „ 04 2f .32 83 76 93 62 95 55 93 96 47.89 50.42 51.79 54.19 1949 : 1st quarter 2nd „ Average hourly earnings in absolute amounts are published for the industrial branches shown above. Averages for mining and manufacturing industry combined are published as index numbers only and are reproduced in table I I . No information on wages and hours of work in private bunding is available. Only an index number of wages is published as a component p a r t of the construction cost index number. The only other information published refers t o average hourly earnings of carpenters employed b y the municipalities of the six most important towns of Finland. By w a y of example, the figures for Helsinki are reproduced in table I I I . 150 WAGES AND PAYROLL STATISTICS TABLE n . FINLAND : INDEX NUMBERS OF AVERAGE HOURLY EARNINGS IN MINING AND MANUFACTURING (1939 = 100) Mining and manufacturing Dates 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1948 : 1st quarter 2nd , 3rd „ 4th „ Males Females 100 100 176 205 235 420 563 767 177 209 243 510 675 894 1,015 1,129 1,171 1,164 1,240 1,324 1,355 1,362 1949 : 1st quarter 2nd , TABLE IH. FINLAND : AVERAGE HOURLY EARNINGS OF CARPENTERS EMPLOYED BY THE HELSINKI MUNICIPALITY (in F. Dates 1939: 1940 1941 1942 : 1943 : 1944 : 1945 : 1946 : marks) Carpenters (Helsinki) Aug 13.64 Deo Dec Deo Dec Mar 20!l6 19.80 23.61 43.38 49.86 51.47 57.11 58.19 64.76 75.73 83.16 90.11 103.59 113.81 118.67 117.13 112.49 Sept Dec 1947 : Mar Sept Dec 1948 : Mar Sept Dec 1949 : Mar 151 APPENDICES Information on average hours of work per fortnight in manufacturing is contained in table IV ; no information on hours of work in mining and in building (absolute figures or index numbers) is published : TABLE rV. FINLAND : AVERAGE HOTTES OF WORK PER FORTNIGHT IN MANUFACTURING Manufacturing Dates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 89.9 91.7 90.1 89.6 88.3 90.1 91.3 91.2 89.8 88.5 88.7 89.9 1948 : 1st quarter 2nd 3rd „ 4th 91.2 90.4 88.1 89.9 2nd 89.7 89.3 „ IRELAND 1. Ireland's ratification was registered on 9 October 1946 ; no Part was excluded. 2. The breakdown by industries used for pubHcation of earnings and hours data is reproduced below : Bacon curing Butter, cheese, condensed milk and margarine Grain milling Malting Bread, flour confectionery and biscuits Sugar, sugar confectionery, jam making, etc. Aerated and mineral waters Brewing Distilling Tobacco Bricks, pottery, glass and monumental masonry Timber Brushes and brooms Wood furniture and upholstery Assembly, construction and repair of vehicles Metals WAGES AND PAYROLL STATISTICS 152 Engineering and implements Linen, cotton and jute Woollen and worsted Clothing (wholesale factories) Men's and boys' clothing Shirtmaking Women's and girls' clothing Miscellaneous clcthing Boots and shoes Hosiery Fellmongery and leather Papermaking and stationery Printing and bookbinding Soap and candles Chemicals and drugs Oils, paints and polishes Mines and quarries Other industries Total x Building and construction Laundry, dyeing anc cleaning Canals, docks and harbours Railways and tramways Gasworks Waterworks Electricity Local authorities Government departments Total all industries 3. Information available on hourly and weekly earnings and on average numbers of hoars worked per week is summarised in the three following tables : TABLE I. IRELAND : AVERAGE HOUELY EAKNUTOS (in shillings and pence) Mining and quarrying Transportable goods (mining, manufacturing) Building and construction Date Fe- Total 1 Males FeMales males males 1937 : Oct. 0 10.0 0 1938 0 10.9 0 1939 0 11.1 0 1940 1 0.1 0 1941 1 0.6 1 1942 1 2.8 1 1943 1 3.8 0 7.3 1 1944 1 5.6 0 7.5 1 1945 1 5.9 0 7.6 1 1946 1 6.6 0 9.3 1 1947 1 9.2 0 9.5 1 1948 9.8 10.8 10.9 11.9 0.3 2.5 3.5 5.3 5.7 6.2 8.9 1 1 1 1 1 1 1 1 1 1 2.9 3.3 3.6 4.2 4.5 5.2 6.2 7.4 7.9 9.2 0 0 0 0 0 0 0 0 0 1 7.9 8.2 8.5 9.0 9.2 9.3 10.3 11.1 11.3 0.4 FeTotal 1 Males males 0 0 1 1 1 1 1 1 1 1 11.4 11.9 0.1 0.6 0.9 1.5 2.6 3.6 3.8 4.8 1 1 Total (mining, manufacturing, construction, transport, services) Fe- Total 1 Total 1 Males males 3.1 0 6.4 1 4.5 0 7.4 1 2.8 1 4.2 1 , 1 7.5 1 9.1 1 8.7 1 10.3 0 10.3 1 0 8.2 1 0 8.0 1 1 0.5 1 7.0 8.5 8.1 9.7 1 1 1 1 ' Including juveniles. 1 2.0 0 7.9 0 11.9 2.8 0 8.2 1 0.7 Industries engaged ia the production of transportable goods. 5.3 6.4 6.7 8.2 ... 0 10.2 1 0 11.0 1 0 11.2 1 1 0.2 1 3.0 3.9 4.0 5.3 153 APPENDICES TABLE n . IRELAND : AVERAGE WEEKLY EARNINGS (in shillings pence) Transportable goods (mining, manufacturing) Mining and quarrying Dates and Building and construction Total (mining, manufacturing, construction, transport, services) FeFeFeFeTotal 1 Total 1 Males males Males males Total1 Males males Total" Males males 1937 Oct. 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1 36 40 41 44 45 50 55 61 64 66 78 11 7 11 1 11 11 1 1 0 10 10 24Í 11 24Í 9 le 0 2£1 2 3Í 1 36 40 41 43 45 49 54 60 63 65 77 1 0 0 0 0 11 1 0 2 8 5 56 58 59 61 62 64 68 73 76 81 3 3 4 4 5 4 8 4 1 7 28 29 31 32 32 31 35 38 40 44 10 10 6 7 0 11 3 4 5 10 41 43 44 48 47 48 52 56 58 82 11 10 10 6 1 7 9 10 5 7 55 9 19 0 54 5 51 9 28 11 43 7 60 8 21 6 59 2 54 11 29 10 46 4 71* 75 76 81 3 5 1 5 21* 20 22 35 0 5 8 8 69* 3 73 3 73 11 79 1 64' 67 70 76 6 10 8 6 35' 38 40 44 1 0 1 3 54' 57 59 64 3 6 5 5 ::: Including juveniles. ' TABLE HI. IRELAND : AVERAGE HOUBS PEB WEEK Mining and quarrying Dates Males 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Oct. 1 44.4 44.7 45.2 43.5 43.9 41.3 41.9 41.7 42.9 43.4 44.6 Females Total1 Transportable goods (mining manufacturing) Males Females Total1 Building and construction Males 44.2 44.3 44.6 45.5 43.6 44.2 44.0 45.1 45.6 44.2 44.6 43.4 45.5 43.5 44.4 43.8 45.3 41.9 43.5 41.2 44.9 41.1 43.1 41.9 45.2 41.0 43.3 43.9 Ü.1 41.7 45.3 41.4 43.6 42.9 28.5 42.8 46.0 42.9 44.4 44.2 37.5 43.2 46.1 43.5 44.7 43.9 40.5 44.4 Including juveniles. Total (mining, manufacturing, construction, transport, services) Females Total1 Males Females Total1 35.5 34.8 44.2 44.0 43.9 44.5 43.9 43.5 43.9 43.9 , , 24.5 29.8 34.3 34.2 ... 43.8 42.9 44.1 43.8 44.7 44.2 42.9 43.6 41.2 41.5 42.9 43.6 ... ... 43.5 43.4 44.5 44.7 ... 154 WA3ES AND PAYBOLL STATISTICS Index numbers of weekly earnings based on the results of this yearly enquiry are published with 1938 used as base. Rates per hour for certain building trades and the index numbers of hourly rates in manufacturing and building are reproduced in table IV. TABLE rV. IRELAND : BATES PEE HOTTE AND LNDEX NTTMBEES (in Dates i shillings Mining 1937. . . 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1949. and pence ; 1931 Manufacturing and building 99.6 105.7 107.5 107.9 111.4 111.4 116.2 121.8 124.4 128.2 153.5 167.6 182.4 — 100) Building Carpenters Bricklayers Labourers s. 1 1 1 1 1 1 2 2 2 2 2 2 3 s. 1 1 1 1 2 2 2 2 2 2 2 2 3 s. 1 1 1 1 1 1 1 1 1 1 2 2 2 d. 8.8 10.2 10.4 10.4 11.2 11.2 0.3 1.1 1.9 2.6 7.3 10.8 1.8 d. 9.3 11.0 11.1 11.1 0.0 0.0 1.6 2.6 2.8 3.8 9.4 11.2 2.2 d. 2.4 3.8 4.3 4.3 5.1 5.2 6.7 7.6 8.0 9.1 0.8 3.0 6.0 'Beginning of the year. The publication of the Department of Industry and Commerce entitled Some Statistics of Wages and Hours of Work in 194... contains both rates per hour and normal hours of work of a list of twentyfour occupations in certain town districts of Ireland ; information on additional occupations is also given for Dublin. Index numbers of weekly wage rates in a large selection of manufacturing industries (the so-called " protected industries ") are reproduced in table V ; thsy show what the changes in rates of wages for a full-time week at ordinary rates would be if the numbers employed in the different individual industries had remained unchanged. Index numbers of weekly earnings based on the same principle are also shown in table V. 155 APPENDICES TABLE V. IRELAND : I N D E X N U M B E R S OS W E E K L Y AND OS W E E K L Y RATES EARNINGS (September 1939 = 100) Manufacturing (protected industries only) Dates 1937 1938 1939 : S e p t 1940 : M a r Sept 1941 : M a r Sept 1942 : M a r Sept 1943 .-Mar Sept 1944 : Mar Sept 1945 : M a r Sept 1946 : M a r Sept 1947 : M a r Sept 1948 : M a r Sept 1949 : M a r Sept weekly rates weekly earnings 100.0 104.8 107.3 108.5 108.8 109.1 109.4 115.4 118.1 121.9 124.3 124.9 125.3 129.4 131.8 145.3 155.4 162.1 167.6 170.3 100.0 101.0 105.6 105.6 105.2 105.2 107.2 114.6 118.6 123.7 128.8 130.0 132.0 135.9 143.0 151.7 168.6 178.1 186.0 187.9 No index numbers of actual or normal hours of work per week are published. MEXICO 1. Mexico's ratification was registered on 16 July 1942 ; no Part was excluded. 2. The industry breakdown of the data shown in tables I and I I I below is as follows : Vegetable oils manufacturing Mineral and soda waters Rubber manufacturing Stockings Boots and shoes Carpentry and cabinet making Wax and paraffin Matches Beer 156 WAGES AND PAYROLL STATISTICS Cigarettes Canning Building and construction Tannery Raw cotton cleaners Distribution of electricity Candies and chocolate Foundry Cotton goods Woollen goods Printing (bookbinding) Soap manufacture Lithography and photolithography Chinaware (crockery-porcelain) Construction materials Mines and metallurgical plants Grain mills Bakery and pastry shops Paper Macaroni, biscuits Periodicals, roto-engraving and photo-engraving Chemical products Working clothes Municipal services Mechanical workshops Urban transport (goods) Urban transport (passengers) Glass and crystal Total 3. The average hotirly and weekly earnings and average hours of work per week in October of each year a r e reproduced in tables I, I I and III. TABLE I. MEXICO : AVERAGE EARNINGS PEE HOUR (in pesos) Dates 1937 : O c t . . . . 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Total Mining (mining, Building and manufacturing, and Manufacturing metallurgical construction construction, plants transport) 0.16 0.75 0.82 0.82 1.10 1.20 0.36 0.40 0.60 0.40 0.67 0.68 0.84 0.85 1.02 1.17 0.48 0.47 0.41 0.43 0.59 0.66 0.73 0.86 ... o!è'o 0.63 0.72 0.73 0.68 0.84 157 APPENDICES TABLE H . MEXICO : AVERAGE E A R N I N G S P E S W E E K (in pesos) Dates Total Mining (mining, Building and manufacturing, and Manufacturing construction construction, metallurgical plants transport) 1937 . Oc t. 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 2 6.92 27.41 32.07 32.78 38.53 42.63 46.94 53.44 TABLE I H . MEXICO : AVEBAGB HOUBS O F W O B K P E B W E E K Dates 1937 : O c t . . . . 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 »> Total Mining (mining, Building and manufacturing, and Manufacturing construction construction, metallurgical plants transport) 46.82 44.56 45.41 44.72 49.84 48.59 ... 45.74 43.49 44.53 45.01 43.56 44.88 41.91 44.69 •.. 45.16 43.60 44.79 45.01 45.84 46.32 45.88 45.60 No index numbers computed on the basis of the figures given above have been published. The Statistical Office of the Department of Labour and Social Welfare publishes for mining the following information : il 158 W A 3 E S AND PAYROLL STATISTICS TABLE TV. MEXICO : AVERAGE EARNINGS PER WEEK AN» INDEX NUMBERS IN MINING AND METALLURGICAL PLANTS (in pesos ; 1939 = 100) Dales 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 ; Pesos Index numbers 33.38 34.27 36.49 37.41 46.45 58.33 61.53 62.74 63.40 100 103 109 112 139 175 184 188 190 The publication of the Secretaria de Economia entitled Trimestre de Barómetros Económicos contains index numbers of monthly earnings in manufacturing and construction ; these are reproduced in table V. TABLE V. MEXICO : INDEX NUMBERS OF AVERAGE EARNINGS PER MONTH (1939 = 100) Dates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Construction Manufacturing and construction 73.9 95.0 100.0 109.9 114.3 115.2 143.7 163.1 187.7 214.4 77.2 89.7 100.0 103.9 107.5 115.2 144.9 165.6 187.1 228.6 1948 2nd 3rd 4th , „ „ 1 9 4 9 : 1st q u a r t e r 2nd „ Manufacturing branches covered are : textiles ; food products ; clothing and soap ; tobacco ; rubber, paper and alcohol. APPENDICES 159 NETHEBLANDS 1. The Netherlands' ratification was registered on 9 March 1940 ; no P a r t was excluded. 2. T h e breakdown by industries for t h e general averages shown in the tables below is as follows : Brick factories Manufacture of earthenware pipes and roof and floor tiles Manufacture of potteryManufacture of cement goods Glass factories, processing of glass, window making Manufacture of fire-proof bricks, slates, cement, plaster Diamond industry Book, commercial and newspaper printing works Lithographical establishments Chemical reproduction processes Navvying, ditching, dredging, street paving, road construction Civil engineering, construction of public utilities Paint grinding, distillation of varnishes and lacquers Manufacture of soap, scents and tooth pastes and powders Manufacture of medicaments and bandages Other undertakings in the chemical industry Sawing and planing Carpenters' establishments Manufacture of boxes Furniture manufacture Other undertakings in the wood industry Manufacture of ready-made clothing (suits and dresses ; underclothes ; haberdashery) Laundries, including ironing Chemical dyeing and cleaning Tanneries, leather factories Shoe factories Manufacture of rubber articles Manufacture of drive belts, leather goods, linoleum, etc. Manufacture of machinery, engineering construction sites, shipbuilding Manufacture of automobiles, garages Gold and silversmiths' establishments Other branches of metal trades Paper industry Manufacture of straw board Manufacture of paper goods and cardboard Bookbinding establishments Undertakings in the wool industry Manufacture of knitted goods Undertakings in the cotton industry Manufacture of artificial thread Carpet and m a t weaving Other branches of the textile industry Cornmilling and manufacture of cattle food Flour mills, including milling by means of rollers Bread factories and bakeries Manufacture of potato meal Sugar beet factories Manufacture of confectionery Cocoa and chocolate factories Manufacture of butter, cheese and other milk products Manufacture of meat products Canning of vegetables, fruit, etc. Distilleries Breweries 160 WAGES AND PAYROLL STATISTICS Cigar factories Cigarette factories Other branches of food and luxury trades Total 3. Information available on wages and Lours of work is summarised in the four following babies : TABLE I. NETHERLANDS : AVERAGE EARNINGS PER HOUR, ADULT MALES Dates 1 Coal mining (earnings per shift) ' Underground Above ground Manufacturing Skilled 5.32 5.39 4.10 4.12 10.51 11.44 12.00 7.15 7.56 8.05 1 a SemM ski'ed | Unskilled Skilled cents florins 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Building Semiskilled Construction Skilled ceñís 58 60 68 70 73 48 51 55 59 62 43 45 50 54 57 49 50 52 54 56 58 60 85 97 102 108 7o 8'i 9!; 9i; 72 83 87 93 78 86 90 95 Manufacturing, building a n d construction Semi- Unskilled Skilled skilled Semi- i skilled 1Unskilled cents cents 41 42 43 47 49 52 55 52 54 57 60 63 68 46 45 50 52 57 66 39 40 44 47 52 59 54 56 59 65 68 71 47 47 51 54 59 62 42 42 45 49 54 57 72 81 85 90 83 95 101 102 80 88 94 97 74 82 86 89 83 94 100 105 75 87 92 98 72 83 87 93 One week in Sept., Oct., or Nov. Of 8 hours ; averages lor second half of each year ; excluding family allowances. TABLE I I . N E T H E R L A N D S : AVERAGE E A R N I N G S P E R W E E K , A D U L T »TALES (in florins) Dates 1 Coal mining Under- Above ground ground 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1 Manufacturing Skilled & ¡te« 27.69 26.13 28.97 32.73 35.82 23.33 22.43 25.24 28.58 30.99 38.61 46.65 49.80 52.73 35.02 42.44 45.14 47.85 Building Construction Manufacturing, building and construction Skilled Semiskilled Skilled Semiskilled Unskilled Skilled Semiskilled Unskilled 20.67 20.03 23.73 26.44 28.55 24.82 25.49 26.82 27.93 30.21 21.03 22.15 23.60 25.33 28.07 28.53 27.72 32.02 34.72 36.98 23.24 25.17 28.54 30.74 35.37 19.63 20.95 23.37 26.37 30.99 25.78 26.83 26.03 28.60 32.36 34.98 22.25 22.94 22.55 25.20 28.42 30.93 20.07 20.42 20.22 23.67 26.43 28 74 33.30 40.36 42.70 45.58 37.79 43.09 45.53 47.78 35.15 40.46 42.72 45.46 43.14 50.77 56.31 57.00 41.00 47.71 51.20 54.53 36.55 41.90 45.58 47.33 38.50 45.95 49.02 51.82 35.14 42.39 45.07 47.78 33.88 40.55 43.04 45.78 One week in Sept., Oct. or Nov. 161 APPENDICES TABLE i n . N E T H E B L A N D S : A V E E A G E HOURS O F W O E K P E E W E E K , A D U L T MALES Dates 1 Coal mining Under- Above ground ground 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1 Manufacturing Construction Building Manufacturing, building and construction Skilled Semiskilled Unskilled Skilled Semiskilled Skilled Semiskilled Unskilled Skilled Semiskilled Unskilled 48.0 43.5 42.5 47.0 49.0 48.5 44.0 46.0 48.5 49.5 48.5 44.5 47.5 49.0 50.5 48.0 47.5 48.5 48.5 50.0 49.0 47.5 48.5 48.5 50.5 48.5 49.0 53.0 55.0 54.5 5Ó.0 50.5 64.5 54.0 53.0 48.5 48.0 49.5 51.0 52.0 47.5 48.0 44.5 44.0 48.0 49.5 48.0 48.5 44.5 46.5 48.5 49.5 48.5 48.5 48.5 48.0 49.5 50.5 45.5 48.5 49.0 49.0 46.5 48.5 48.5 48.5 47.0 49.0 49.0 49.0 48.5 50.0 50.5 50.5 49.0 50.0 50.5 50.5 52.0 53.5 55.5 55.5 51.5 54.5 55.5 56.0 49.5 51.0 53.0 53.0 46.5 49.0 49.0 49.0 46.5 48.5 49.0 49.0 47.6 49 0 49.5 49.5 One week i n Sept., Oct., or N o v . TABLE r V . N E T H E ß L A N D S : AVEEAGE DAILY E A R N I N G S (ACCIDENT I N S U R ANCE) A N D I N D E X N U M B E E S OE HOTJELY E A R N I N G S A N D OE HOUELY BATES (in florins ; 1937 = 100) Dates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Mining 5.23 5.48 5.53 5.92 6.09 6.12 6.68 , 7.67 9.23 Manufacturing Building and construction Total (mining, manufacturing, construc- Mining, manufacturing and construction (adult males) transport, services) Hourly earnings Hourly rales 100 104 106 113 119 128 134 140 163 189 203 214 100 103 104 108 111 112 112 113 135 168 173 182 3.21 3.25 3.27 3.40 3.65 3.96 4.28 3.39 3.45 3.53 3.97 4.21 4.37 4.90 3.52 3.54 3.56 3.71 3.99 4.26 4.60 5.68 6.38 6.23 6.84 5.81 6.52 With regard to hours of work in mining, a communication from the Netherlands Government, in answer to a question by the Committee of Experts on the Application of Conventions, indicates that 162 WAGES AND PAYROLL STATISTICS the total amount of time actually worked in coal mines is 354 minutes for each shift of eighi hours. 1 NEW ZEALAND 1. New Zealand's ratification was registered on 18 J a n u a r y 1940 ; P a r t I I (Earnings) was excluded. 2. T h e industrial breakdown of t h e figures shown in t h e tables below is as follows : Provision of : Food, drink, etc. Clothing, footwear and textiles Building and construction Power, heat and light Transport by water Transport by land Accommodation, meals, and personal service Working in or on : Wood, wicker, seagrass, and fibre Metal Stone, clay, glass, and chemicals Paper, printing, etc. Skins, leather, etc. Mines and quarries The land (farming pursuits) All groups combined 3. General averages for the industries shown above are reproduced in t h e three following tables. TABLE I. NEW ZEALAND : WAGE RATES PER HOUR AND INDEX NUMBERS (in Mines and quarries Dates shillings Manu- facturing Fe- Total Males Fe- Total Males males malos and pence; 1926-1930 Building and construction he- Total Males males = 100) Total (mining, manufacturing, construction, commerce, transport, services) he- Total ! Males males Males s. 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 116.2 120.5 120.5 125.4 129.1 138.0 142.1 143.5 152.5 155.9 166.8 185.0 113.4 121.0 121.6 125.2 129.2 134.0 136.2 137.3 148.6 152.5 159.5 167.1 115.4 121.2 123.5 127.5 132.6 138.1 141.4 142.9 153.6 158.6 165.9 175.2 Females d . s. 2 4.37 1 2 5.80 1 2 6.35 1 2 7.34 1 2 8.60 1 2 9.94 1 2 10.75 1 2 11.13 1 3 1.75 1 3 2.99 1 3 4.79 2 3 7.07 2 1 International Labour Conference, 32nd Session, Geneva, 1949 : Record, No. 17, p . n . s. 3.17 2 3.81 2 4.53 2 5.04 2 5.60 2 6.49 2 7.37 2 7.44 2 9.91 2 11.66 2 0.98 3 3.30 3 d. Provisional Total d. 1.27 2.47 2.97 3.74 4.71 5.98 6.92 7.22 10.07 11.86 1.63 4.22 163 APPENDICES TABLE II. NEW ZEALAND : INDEX NTJMBEBS OF WEEKLY WAGE BATES (1926-1930 = Mines and quarries Dates : ernales Total Males 1937. 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1948: 1st 2nd 3rd 4th 1949 : 1st 2nd Manufacturing Males Females Total 100) Building and construction Males Females Total Total (agriculture, mining, manufac- turing, construction, commerce, transport, services) Males Females Total 101.5 105.5 110.3 113.7 117.4 123.4 129.2 129.7 145.9 153.3 161.4 176.4 103.4 108.0 110.0 113.2 117.2 122.3 126.2 127.4 138.5 144.0 149.7 159.7 107.6 111.7 111.7 116.2 119.6 127.9 131.7 133.0 141.3 144.5 154.6 164.7 105.1 112.2 112.6 116.0 119.7 124.1 126.2 127.2 137.7 141.3 147.8 154.9 103.6 108.1 110.0 113.0 117.0 122.2 126.1 127.4 138.1 143.4 148.9 158.7 156.4 164.6 164.6 164.9 154.4 154.4 154.4 157.9 157.2 157.6 158.5 159.1 q u a r t e r 164.9 159.6 161.6 . . . quarter „ „ „ „ ... TABLE .•. ... ... m . NEW ZEALAND : INDEX NTJMBEBS OF NORMAL HOURS OF WORK PEB WEEK (1926-1930 = 100) Dates Mines and quarries Males 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 . . . . . . . . . . . . 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 83.2 Females Manufacturing Males Females Building and construction Males 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 86.6 Females Total (mining, m a n ufacturing, construction, commerce, transport) Males Females 89.0 88.8 88.8 88.8 88.8 88.8 88.8 88.8 88.5 87.7 86.7 86.6 89.8 89.6 89.6 89.6 89.6 89.6 89.6 89.6 89.4 87.0 86.7 86.7 Total ... 164 WAGES AND PAYROLL STATISTICS No averages for manufacturing as a whole have been published in absolute amounts or in index numbers. The publication of the Census and Statistics Department entitled Report on Prices, Wages and Labour Statistics, 194... contains average minimum weekly wage rates and average hours per full week (as at 31 March of each year) lor each of the occupations included in the index ; figures given are averages for the four principal industrial districts and do not include payments in kind (shown separately). NORWAY 1. Norway's ratification was registered on 29 March 1940 ; Part I I I (Rates) -was excluded. 2. The breakdown by industry of the ñgures shown in the table below (except contracting) is as follows : Mining Metallurgy Chemicals and electro-chemical industryOils and fats Paper Leather and rubber Textiles Clothing Food Miscellaneous Total 3. The information published is summarised in the following table : NORWAY : AVERAGE EARNINGS PER HOUR OS ADULT WORKERS (in Mining, Mining 1937. . . 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1948: 1st q u a r t e r 2nd „ 3rd „ 4th „ 1949: 1st q u a r t e r 2nd „ 1 Females Total Males 1 Females 1.71 1.76 1.86 1.89 1.95 2.16 2.55 2.85 3.01 0.95 0.95 1.03 1.07 1.08 1.21 1.43 1.63 1.70 1.56 1 1.59 1 1.72 1.76 1.83 1.88 1.92 2.17 2.52 2.78 2.94 2.93 3.02 3.03 3.07 1.69 1.70 1.68 1.71 2.85 2.92 2.98 3.02 Third quarter. Contracting manufacturing Dates Males kroner) Total Males 0.97 1 0.Ö71 1.04 •1.05 1.06 1.09 1.14 1.32 1.53 1.76 1.89 2.Í81 2.26 1 2.19 2.23 2.35 2.33 2.47 2.57 3.25 3.70 4.02 1.83 1.88 1.90 1.93 3.64 3.86 4.07 4.41 Females Total 165 APPENDICES The publication of a series on hours of work in manufacturing has been interrupted since 1945, and no information on hours of work for mining and for building and construction, and no index numbers, are available. SWEDEN 1. Sweden's ratification was registered on 21 June 1939 ; Part I I I (Rates) was excluded. 2. The breakdown by industry is as follows : Mining and metal industry Mining E a r t h and stone Wood Paper and printing Food Textiles and clothing Leather, skins and rubber Chemicals Total, including seasonal industries Total, excluding seasonal, industries Building Public works and shops (State) Public works and shops (municipalities) ' Commerce and warehouses Transport Laundries Grand total, including seasonal industries Grand total, excluding seasonal industries 3. The information available is summarised in the three following tables : TABLE I. SWEDEN : AVEKAGE EARNINGS PER HOTJB (in hronor) Mining and manufacturing Mining ' Dates Males 1 Females Total • 1937. . 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1 1 . . 1.63 1.72 1.79 1.84 1.96 2.16 2.26 2.28 2.33 2.47 2.85 3.20 2.16 2.30 2.79 3.14 Except coal. Including foremen and juveniles. Males 1.90 2.04 2.33 2.53 Females 1.26 1.37 1.61 1.79 Total » 1.73 1.87 2.15 2.37 Building and construction Males 1.70 1.79 1.89 1.86 1.94 2.12 2.30 2.38 2.45 2.77 2.97 3.25 Females Total (mining, manufacturing, construction commerce, transport, services) Total s Males Females 1.68 1.77 1.87 1.85 1.92 2.11 2.29 2.37 2.43 2.72 2.94 3.23 1.29 1.37 1.42 1.53 1.64 1.79 1.86 1.90 1.98 2.15 2.44 2.65 0.77 0.80 0.84 0.93 1.01 1.09 1.14 1.19 1.27 1.38 1.62 1.79 Total * 1.81 1.98 2.27 2.77 166 WAGES AND PAYROLL STATISTICS TABLE II. SWEDEN : AVERAGE EARNINGS PEE WEEK (in kroner) Iron mining Dates Females Males 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Total Mining manufacturing Males Females H I 94 114.28 Building and construction and Total Males Females 87.81 Total Total (mining, manufacturing, construction, commerce, transport, services) Males Females 122.57 101.30 63.28 92Ì98 TABLE HI. SWEDEN : AVERAGE HOURS OE WORK PER WEEK Dates 1937 1938. 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Nov. . . . Dec. June Nov. Nov. Nov. Nov. Nov. Nov. May- Iron i ;_*.» Mining Total Mining Building and manu- and confacturing struction 46.1 45.5 46.2 45.6 47.3 45.3 45.7 45.4 43.7 42.8 47.2 46.3 45.6 46.6 47.0 47.2 47.3 47.2 47.4 46.8 Total (mining, manufacturing, construction, commerce, transport, services) 46.9 45.7 45.2 46.4 46.9 47.0 47.1 47.0 47.2 47.0 Index numbers of wages are published using 1939 or 1945 as basis. SWITZERLAND 1. Switzerland's ratification was registered on 23 May 1940 ; Parts ILI (Rates) and IV (Wages and Hours of Work in Agriculture) were excluded. 167 APPENDICES 2. T h e breakdown b y industries used is as follows Establishment reporting Industry Textile Clothing Food Chemicals Paper, leather Printing Wood Metals, machines Watches, jewellery Earth, stones Other industries Private transport Commerce Total Insurance statistics Extraction of minerals and work on stone E a r t h and stone Building Wood Food, drink and tobacco Shoes Textiles Printing Paper Chemicals Metals and machinery Watchmaking Power stations Total 3. The available information is summarised in the four following tables : TABLE I. SWITZERLAND : AVEBAGE EABNINOS PEB HOTJB, ACCIDENT INSTJBANCE STATISTICS (in francs) Extraction of minerals and work on stones Males skilled Males Feand unmales semi- skilled skilled 1937. 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1.20 1.22 1.22 1.25 1.36 1.55 1.66 1.85 2.00 2.16 2.25 2.35 0.93 0.97 0.97 1.01 1.12 1.31 1.49 1.58 1.70 1.82 1.95 2.08 0.84 1.05 1.10 1.18 1.22 Total Manufacturing Males skilled Males Feunand males semi- skilled skilled 1.32 1.37 1.37 1.42 1.52 1.67 1.80 1.90 2.01 2.21 2.41 2.55 1.07 1.09 1.08 1.12 1.22 1.37 1.50 1.60 1.70 1.87 2.04 2.16 0.70 0.70 0.73 0.75 0.81 0.91 1.00 1.08 1.16 1.39 1.49 1.58 Total Building Males skilled Males unand semi- skilled skilled 1.41 1.44 1.46 1.48 1.57 1.70 1.83 1.96 2.06 2.28 2.45 2.58 1.08 1.10 1.11 1.14 1.25 1.40 1.52 1.64 1.72 1.94 2.09 2.20 Total (mining, manufacturing, construction, commerce, transport, forests) Males skilled Males Fe- Total Feunand males males Total semiskilled skilled 0.89 1.03 1.15 1.23 1.40 1.54 1.65 1.36 1.40 1.40 1.44 1.54 1.68 1.81 1.92 2.03 2.23 2.42 2.56 1.07 1.08 1.08 1.12 1.22 1.37 1.50 1.61 1.70 1.88 2.04 2.15 0.70 0.73 0.73 0.75 0.82 0.92 1.00 1.08 1.16 1.34 1.49 1.58 168 WAGES AND PAYKOLL STATISTICS T A B L E H . SWITZERLAND : AVERAGE E A R N I N G S P E R HOTTR, OCTOBER (in ENQUIRY francs) Total (mining, manufacturing, construction commerce, t r a n s p o r t , services) Manufacturing Dates 1937 1938 1939 : 1940 1941 1942 : 1943 : 1944: 1945 : 1946 : 1947 : 1948 : Mining . . . . . . June . . . . . . Oct. „ „ „ „ „ „ Kales Males s m i Feskilled skilled males and u n skilled Tolal a n d construction Males semiMales skilled Feskilled a n d un- males skilled . . 1.54 1.Ì7 0.74 1.55 1.18 0.75 1.50 1.62 1.73 1.85 2.04 2.19 2.31 0.97 1.05 1.15 1.29 1.45 1.57 1.65 1.91 2.03 2.14 2.26 2.47 2.66 2.80 1.51 1.63 1.73 1.85 2.04 2.19 2.31 0.97 1.05 1.16 1.29 1.45 1.57 1.66 . . . . . . . . . . 1.91 2.03 2.14 2.26 2.47 2.86 2.80 TABLE I I I . SWITZERLAND : AVERAGE E A R N I N G S P E R WEEK, ACCIDENT I N S U R A N C E STATISTICS (in franca) Dates Extraction of minerals Manua n d stone facturing work Total (forests, mining, manufacturing, construction, commerce, transport) Building Males skilled and somi-skilted 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 . . . . . . . . . . . . 67.04 68.62 69.29 71.95 76.88 84.20 90.65 95.17 100.83 110.75 119.79 126.56 Males unskilled 53.62 54.21 54.33 56.98 62.93 70.92 77.15 81.81 86.51 95.22 103.01 108.24 Females 33.73 34.42 34.80 36.13 38.74 43.28 47.38 51.19 55.04 64.08 70.79 75.02 Total Total 169 APPENDICES TABLE IV. SWITZERLAND : AVERAGE HOURS OF WORK PER WEEK Mining Dates Manufacturing 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 47.1 46.3 47.1 47.3 47.0 46.8 47.1 47.4 47.6 47.8 47.9 47.7 1948 : M a r 47.7 47.8 47.8 47.6 June Deo Building ' 47.4 47.4 1949 : M a r Average hourly earnings are available from two sources: workmen's compensation and establishments reporting. Index numbers of hourly and of weekly earnings (insurance statistics) are published, using 1913 and January-August 1939 as base; index numbers of hourly earnings based on establishments reporting use June 1939 as base. Information on hours of work in mining and in building and index numbers of hours of work are not published. UNION OF SOUTH AFRICA 1. The Union of South Africa's ratification was registered on 8 August 193!) ; Parts II (Earnings) and IV (Wages and Hours of Work in Agriculture) were excluded. 2. Information is published for the following list of occupations (separately for the Cape Peninsula, Port EHzabeth, Durban, Pinetown, Pretoria and Witwatersrand) : Building industry : Bricklayers a n d masons Electrical fitters C a r p e n t e r s a n d joiners Plasterers Plumbers Painters Unskilled l a b o u r e r s 170 WAGES AND PAYBOLL STATISTICS Baking and confectionery industry : Baker Doughmaker Oven-man Confectioner Unskilled labourer Clothing industry : Males Cutters Other qualified employees Females Cutters Other qualified employees Footwear industry (Cape Peninsula only) : Designing department î occupations Clicking department 4 occupations Closing department 5 occupations Rough stuff department 6 occupations Making department 8 occupations Finishing department 5 occupations Shoe r o o m patent repairer, embosser, boxer, etc. Furniture industry : Journeymen Bedding maker Seamster or seamstress Labourer Printing industry : Typesetting machine operators Off-set, etc., machine minders Other journeymen Printers' assistants Solid typesetters Monotype caster assistants Quarter binders — males Quarter binders — females Platen pressmen 171 APPENDICES 3. Available data are summarised in the three following tables. TABLE I. UNION OF SOUTH AFRICA : RATES PER SHIFT 1 OF EUROPEAN ADULT MINEBS (in shillings Coal (Transvaal) Dates 1937 : J u n o 1938 „ 1939 » 1940 y 1941 ì 1942 » 1943 » 1944 , 1945 * 1946 > 1947 i 1948 and . . . . 22 22 22 22 22 22 22 23 22 22 23 7 6 1 10 2 8 6 2 4 11 1 pence) Gold 3 (Witwatersrand) 29 29 29 29 31 31 31 33 35 35 35 ... j 9 11 6 11 1 8 4 6 3 7 11 Diamonds (Kimberley) 23 24 24 24 29 27 29 26 26 26 27 10 2 4 1 1 6 11 1 3 4 1 ... 1 Excluding overtime, leave pay, medical benefit allowances, savings fund allowances and 2cost-of-living allowance, but including bonuses. Machine stoping, contract. TABLE II. UNION OF SOUTH AFRICA ( P R E T O K I A ) : BATES FEB HOUR OF EUROPEAN ADULT MALE WORKERS IN BUILDING (in shillings and pence) Dates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Sept Carpenters, plumbers 3 3 3 3 3 3 3 3 3 3 3 3 6 6 6 6 6 6 6 6 6 6 6 6 Painters, glaziers 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 6 6 6 6 172 WAGES AND PAYROLL STATISTICS TABLE m . UNION 0 ? SOUTH AÎEICA : NOEMAL HOUES OF WOEK PEE WEEK OF :0TTEOPEAN ADULT MALES Gold mining Dates 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 Manufacturing Sept. . . . J» 91 >> 91 91 it 91 ! 1 I ; ! i ; Underground Others 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48.5 48 48 48 48 48 48 48 48 48 48 48 48 Building Total (mining, manufacturing, construction, c o mine re G transport) 44 44 44 44 44 44 44 43.5 - 44 43 - 44 42 - 4 4 41 - 44 40 - 44 No averages are computed for manufacturing industry, t h e d a t a forwarded t o t h e International Labour Office referring t o hourly rates and normal hours cf work for t h e list of occupations shown above. The index number of hourly rates (in mining, manufacturing, construction, commerce a n d transport) has not been computed since 1940. No index numbers of normal hours of work have been published. " J N I T E D KlNa-DOM 1. The United Kingdom's ratification was registered on 26 May 1947 ; no P a r t was excluded. 2. The industria'- breakdown used for t h e information contained in tables I, I I and I I I below is as follows : Iron, stone, etc., mining and quarrying Treatment of non-metalliferous mine and quarry products Brick, pottery and glass Chemical, paint, oil, etc. Metal, engineering, and shipbuilding Textiles Leather, fur, etc. Clothing Food, drink and tobacco Woodworking Paper, printing, stationery, etc. Building, contracting, etc. Miscellaneous manufacturing industries Transport, storage, etc. (excluding railways) Public utility services Government industrial establishments Total 3. T h e available information is summarised in the four following tables : TABLE I. TOOTED KINGDOM : AVERAGE EARNINGS PEE HOUE (in shillings and pence) Mining (excluding coal) Dates dales 1937 1 9 3 8 : Oct. 1939 1940 1941 1942 1943 : J u l y 1944 : J u l y 1945 : J u l y 1946 : O c t . . 1947: Oct.. 1948 . - O c t . . . . Total1 Females 3.7 1 2.9 1 Males Total1 Females 5.8 0 Building, contracting 9.0 1 1.0 1 Total1 Males 1 Females 5.1 1 3.9 1 Mining, manufacturing, building, contracting Total1 Males 1 Females 5.6 0 9.0 1 1.5 1 Total (mining, manufacturing, construction, commerce, transport) Males Females 1 Total1 9.0 1 5.4 0 1.7 , fef Ö M . . . . . . . . . . . . 1948: Apr.. . . Oct.. . . 1949: Apr.. . . 1 1 Manufacturing 1 11.9 2 0.8 2 1.9 2 4.4 2 7.6 2 9.8 1 1 10.5 2 5.0 1 1 11.6 2 6.7 1 2 0.5 2 6.7 1 2 3.3 2 7.8 1 2 6.4 2 10.9 1 8.4 2 8.9 3 1.0 1 2 2 8.0 2 8.4 2 9.7 1 9.8 1 ... 8.6 2 11.9 1 8.9 3 1.0 1 4.1 5.1 5.3 6.5 8.2 9.6 1 10.6 2 2 0.1 2 2 0.4 2 2 2.3 2 2 5.1 2 2 7.2 2 9.2 2 9.6 2 6.3 2 7.2 2 0.3 0.9 2.6 5.2 5.8 9.3 1 1 1 1 1 1 8.9 1 9.3 1 •• 3.8 5.1 5.3 6.3 7.7 8.8 1 10.8 2 1 11.1 2 2 0.5 2 2 3.3 2 2 4.0 2 2 7.6 3 8.4 2 8.8 2 4.3 5.9 6.1 7.2 9.8 0.2 1 1 1 1 1 1 7.1 2 1 1 . 3 1 7.6 3 0.2 1 4.1 5.1 5.3 6.4 8.2 9.6 1 10.7 2 3.5 2 0.0 2 5.1 2 0.4 2 5.3 2 2.5 2 6.4 2 4.9 2 9.0 2 7.3 2 11.4 9.2 2 9.6 2 1 1 1 1 1 1 4.3 5.3 5.5 6.4 8.1 9.5 9.0 2 9.5 2 6.5 2 10.6 1 7.3 2 11.4 1 ... 1 Ì0.5 1 11.9 2 0.3 2 2.2 2 4.7 2 7.1 Q m on 6.2 7.1 ... Including juveniles. ~3 CO 174 WAGES A N D PAYROLL Total (mining, manufacturing, construction, commerce, transport) Ci 'eo IO J (N©tNI>ûOrH©cM-* ©•* ' » « : » 3 » ® ® H o i t © I > 0 0 < 3 i OS © © © r H F H I—1 i—1 H< c— i H i—1 1—1 rH »H.—iiNeqiroffqeot-îO •—i rHFH © i - l i—( rH ' CS © ' O S O S H H Ü H O O O C ' •># t > OOOJHNNffllNNW 030Î rH *H rH rH rH i—1 rH F—Ir-1 H O O > O N » 0 0 H © rH FH FH PH FH — i 1 : ' oo i a 115 • * e - c o H oo t t o t - o o o s o i t s o o r t p-l i—1 1—1 : to IN Mining, manufacturing, building, contracting STATISTICS 'fM ¡a • * r» f-Hrt f H PH © ei5t-c»a5ooooa>tN!r-i ooi-i I5©'* C5TíliI5©cO©©l>t> CÎ Tt< C- t - © ©eN©-#©©-rHCO©© ©OI-HCMCTCNIMCO-^ H H H H H H H H © © COT(H H H r-l©t~-*rH©©l>© «5© 00© ©i> r H r H O ^ r H T U t » © ^ rl rH rH t rH C O t - C n ü 5 00 0 0 © f N ' H OOrH çq 05 05coc5i-irî(Nii5©T)i t w * C0nt!QC- t r - t - rH rH FHi-H-^^t-Ot-lO-Ctl rH F H FH FH 'tNPÎû0O0©©©-*ei5 COTH » rHi-H r-oo© œt-00O5C»O5©rH(N rH rH rH ©© IN (N rH rH FH ri © t© C - l f J r H — 1 © 00 ?î • * ri r-4 .© © ••*o500r-OSP5(MC<5© r-ceoocacsOrHoqeo rH rH rH rH "O • S B f l S B Ö O O O . ooeis r l r l r l r l r l r l r l r l CNFH-^t-OC»00©Q0 FH 00 rH : 00 H j C5 © I H ( N Î 0 CN 00C»C»O5©©rH ri ri ri •© IÍ5 'S "rHÔ^OCRrHCSOiOT COOCSOOOOOIN H rH rH rH rH : ; O ri FH FH rH r- r©Tí« F H © eoeo ri ri : i .O . í í í í r í í o O O t-00»OH(N(fl'F|HOeOt«00 e5MC0^1f-*xiHv|(T)lH(rdTjlTj( ©©©©©©GSCOOSCSCSCÍ FHrHFHrHrHrHpHr-HFHFHrHFH ino PI