AN INQUIRY INTO THE TREND OP COMPENSATION AND THE GROWTH AND EXTENT OP WHITE-COLLAR EMPLOYEE UNIONIZATION IN THE UNITED STATES A Thesis Presented to the F aculty of the Department of General Business The U niversity of Southern C alifo rn ia In P a rtia l F u lfillm en t of the Requirements fo r the Degree M aster of Business A dm inistration fey W illiam M eredith C ro sslin , J r. June 1950 UMI Number: EP43240 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI EP43240 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 'so <L *??/ This thesis, written by ......... under the guidance of h%$.~. Faculty Committee, and approved by all its members, has been presented to and accepted by the Council on Graduate Study and Research in partial fulfill ment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION, June 17, 1950 Faculty Committee Chairman v fx*. ^ ^ ^ £ 4 .?C_ TABLE OF CONTENTS CHAPTER PAGE I. THE PROBLEM AND DEFINITIONS OF TERMS USED . . 1 The p ro b le m ......................... 2 Statem ent of the p r o b le m .................................... 2 Im portance of the s t u d y ......................................... 3 Nature of the problem of the w hite- c o lla r worker ............................................... 3 D efin itio n s of term s u s e d .......................................... Ij. W hite-collar employees ................................... I}. Non w h ite-c o lla r e m p lo y e e s ............................... 5> C o llective bargaining ............................................... 5 Unionized o ffic e s ......................................................... £ C o n ciliatio n ................................................................... 6 W ages....................................................................................... 6 S alary .................................................................................. 6 I I . THE WHITE-COLLAR WORKERS ............................................... 7 Who are t h e y ? ........................................ 7 Their a ttitu d e s and b e lie fs .................................... 8 I I I . REPORT OF CLERICAL EMPLOYEE UNIONIZATION IN THE UNITED STATES . .......................................... 12 Conclusions drawn from survey ............................... 13 The development and growth of w hite- c o lla r u n io n s ................................................................... 15 *■ S tatus of o ffic e u n io n izatio n in the United S tates as to geographic lo ca tio n . 17 i i i CHAPTER PAGE S tatu s of o ffice u n io n izatio n in the U nited S tates as to type of business . . , 18 S tatu s of u n io n izatio n in the United S tates as to size of company and by number of em p lo y ees................................................. 18 A ffilia tio n s of o ffice and fac to ry unions in same com panies, by geographic areas . 19 O ffice union a f f ilia tio n by size of com pany................................................................................ 20 A ffilia tio n s of o ffice and facto ry unions in same companies, by type of business . 21 Comparison of companies w ith and w ithout . o ffic e unions by size of company and geographic areas . . . . . ............................... 22 In te re st in u n io n izatio n in companies w ithout o ffice u nions, by geographic areas .............................................................. 23 In te re st in u n io n izatio n in companies w ithout o ffice unions, by type of business ......................................................... 23 Length of probation period in companies w ith o ffice unions, by geographic areas . 23 iv CHAPTER PAGE Percentage and geographic lo c a tio n of companies, w ith and w ithout o ffice unions, having Wage Incentive Plans fo r o ffice employees and organized methods for handling g rie v a n c e s ..................... 2\+ Percentage and type of business of companies w ith and w ithout o ffice unions having Wage Incentive Plans fo r o ffic e employees and organized methods fo r handling grievances ........................ 25 Standard work week by companies w ith and w ithout o ffic e unions, by geographic areas ............................... 26 Factory union a f f ilia tio n in companies w ithout o ffice unions, by type of b u s i n e s s ............................................................................. 27 F actory union a f f ilia tio n in companies w ithout o ffice unions, by geographic a r e a s ............................................................................ 27 Factory union a f f ilia tio n in companies w ithout o ffic e unions, by size of com pany.................................................................................. 28 IV. TRENDS IN UNIONIZATION AND PRESENT STATUS OF WHITE-COLLAR UNIONSI N THEU NITED STATES 29 V CHAPTER PAGE Trends in u n io n izatio n ............................................... 29 W hite-collar workers in the newspaper i n d u s t r y ......................... 29 Government e m p lo y e e s ............................................... 30 The o ffic e worker .................................................... 32 Technicians .......................... . . . . . . . . . 3b Present sta tu s ................................................................... 35 V. THE UNIONIZATION OP WHITE-COLLAR EMPLOYEES ON THE PACIFIC C O A ST .................................................... 38 The u n io n izatio n of r e ta il departm ent sto re c l e r k s ........................................ IpO The u n io n izatio n of public school t e a c h e r s .................................................................. 1^.0 The u n io n izatio n of bank employees . . . . Ip Unionization in the food industry........ ip. The u n io n izatio n of dental lab o rato ry te c h n ic ia n s ........................................................................ b3 Public u t i l i t y workers u n i o n ............................... ijij. The u n io n izatio n of salesm en . . . . . . . The u n io n izatio n of insurance workers . . . 1^5 The u n io n izatio n of C iv il Service em p lo y ees.................................................................. lj.6 The u n io n izatio n of o ffic e personnel . . . bl Vi CHAPTER PAGE VI. TRENDS IN WHITE-COLLAR COMPENSATION ........ $0 Traditional advantages.............. . . . 51 Clerical and office workers ............... 52 Teachers ................... 5^- Pederal Government Employees ............. 59 Overtime unimportant..................... 60 Rise in take-home p a y ..................... 6l Further evidence......................... 62 Annual earnings........................... 63 Postwar position.............. 61f VII. SALARIES OF OFFICE WORKERS IN SELECTED LARGE C I T I E S .............. 66 Intercity differences in salary levels . . 67 Salary levels within cities ............... 70 Related practices and supplementary benefits......................... 72 VIII. WHY ORGANIZATION OF WHITE-COLLAR WORKERS HAS L A G G E D ................................ 75 Prestige and superiority consciousness . . 75 Middle-class Ideology . . . ............... 75 Feeling of relationship to management . . . 76 Employment techniques ..................... 77 The desire for status..................... 78 Type of worker and the group size........ 78 v ii CHAPTER PAGE Rapid growth and recen t o rig in of the group.................................... 79 Racketeering in u n i o n s .............. •• • 80 IX. UNION ORGANIZING METHODS AND PROGRAMS . . . . 8 l Philosophy and approach................... 81 O rganizing methods and p ro g ram s............................. 83 X. SUMMARY AND CONCLUSIONS..................................................... 87 Summary........................................................................................ 87 C o n c lu sio n s......................... 93 BIBLIOGRAPHY..................................................................................................... 96 APPENDICES....................................................................................................... 101 Appendix A -T ypes ofb u s in e s s ................................................. 101 Appendix B - Geographic areas as sta te d in rep o rt of c le ric a l employee u n io n izatio n in the U nited S t a t e s ...................................................................... 103 LIST OF TABLES TABLE PAGE I. Hours and Earnings in M anufacturing and Nonmanufacturing In d u strie s, 1939 and November, 19V7 . . . . . . . . . . . . . . 55 I I . Average Annual Earnings per F ull-tim e Employee, 1939 and 19^6 * ....................................• 57