underemployed persons living in redevelopment areas in 31 courses in 16 different occupations. These programs involve new plants locating in the areas: the Food Machinery & Equipment Corp. at Charleston; the Lockheed Marietta Corp. at Clarksburg; and the Edinburgh Manufacturing Co. at Petersburg. The Bureau of Employment Security and the Bureau of Apprenticeship and Training have provided valuable assistance, conducting labor market surveys and assisting State and local officials to make these programs possible.

INCREASE IN PLACEMENTS

The improved and expanded employment service program has had marked results in West Virginia. The employment service staff has increased by 27 positions since last May. It has resulted in a 39percent increase in placements during the period July 1961-January 1962 as compared with the same period the year earlier. Professional placements increased 85 percent while skilled and semiskilled placements also showed gains. These results are impressive.

EMPLOYMENT OF THE HANDICAPPED

The handicapped of West Virginia have benefited during the last year from the work of the Department and the President's Committee on Employment of the Handicapped. During 1961, 2,109 handicapped workers were placed on jobs. This represents an increase of 19 percent over the preceding year. This is good work, indeed.

The statistical and other programs of the Bureau of Labor Statistics are important to the people and industries of West Virginia. It provides them with data on employment, hours, earnings, labor turnover, and so forth. The "Occupational Outlook Handbook," which is used extensively through the State, is making an important contribution by counseling our young people in vocational choices.

The Bureau of Veterans' Reemployment Rights has been throughout the years providing assistance to those who leave jobs to serve in the Armed Forces. This Bureau assisted 945 individuals and organizations in the State last year and resolved 77 cases relating to individuals' reemployment rights.

I am pleased with the technical services the Department has been providing to the State. The Bureau of Labor Standards conducted safety courses for the State's factory inspectors. The Bureau has also provided assistance on safety codes, labor laws, workmen's compensation, migratory labor and children and youth. Assistance such as this is extremely helpful to the States.

I also appreciate the attention the Secretary and top officials of the Department have given the State of West Virginia as a result of their visits to the State. The Secretary visited West Virginia as one of his first acts and paid a return visit only last month by visiting Clarksburg, Fairmont, and Morgantown. These visits have been helpful to the people of West Virginia and we appreciate the Department of Labor's interest in us.

In summary, let me state that the programs of the Department of Labor are making a fine contribution to the well-being of the people of West Virginia and the Nation.

81716-62-pt. 1- -3

I am proud of the splendid record that has already been written on the pages of history by you, Mr. Secretary, and I foresee an even greater and more resplendent record as you continue in your good work.

OFFICE OF AUTOMATION AND MANPOWER

Senator COTTON. I note on the Office of Automation and Manpower you had $70,000 last year and the budget this year is up to $900,000. I wonder if you could touch on some of the accomplishments of the $70,000 the committee has given you and indicate plans in this area if you receive the $900,000.

Secretary GOLDBERG. I would be glad to do that.

As I mentioned, last year we had a newly appointed Office. It never existed before. I found that nowhere in the Federal Government was there any agency specifically directing its attention to what everybody in the country has recognized to be probably one of our major domestic problems, and that is the great impact that automation is making in our country. Last year we set up the Office and we started to operate in a very modest way. The first thing that we did with this limited personnel and limited group was to get a committee of labor and management people to advise us. We have been working in that Office in order to develop the plans, the bases, and the ideas that are so badly needed in this total problem. Now we are ready to proceed to much more extensive work in this field.

As I said earlier, nowhere outside of a few private studies by private foundations is there any projection of what lies ahead, any attempt to analyze the status of American industry, what changes are going to be forthcoming, what people will be thrown out of work, what new jobs will be opened by new developments, what training will be required for these new jobs, what private industry will do in this area, what the unions will do, and what Government will have to do. This increased appropriation is intended to proceed now to secure the basic materials which are indispensable if we are going to deal with the problem in cooperation with labor and management so that, No. 1, we can educate the country to the need for automation and encourage private measures to meet the problem, and also that we have the essential data so that we know where we are going in this whole area.

ADDITIONAL EMPLOYEES

Senator COTTON. To get down to specifics, can you tell us how many additional people will be employed in your Department for this task? Secretary GOLDBERG. Fifty-five.

Senator COTTON. How many surveys will be made and what will be the cost of the surveys? Can you give us a general idea of that? Secretary GOLDBERG. I will give it to you in general, but we are going to have a detailed presentation to this committee by Dr. Wolfbein and Mr. Clague who will talk about it. I do not want you to believe that this sum will cover the whole work of the Department in this area because there is included in the BLS projections, which will be testified to in detail, moneys for making additional studies. Senator COTTON. What I had in mind is, Are you going to have outside surveys made or will the surveys all be made by your own people?

Secretary GOLDBERG. Most of the work will be done in the Department itself. We may have to engage some consultants but by and large we carry on our own research activities.

ACTIVITIES OF PRIVATE INDUSTRIES

Senator COTTON. What is private industry doing on this point now and are their activities increasing or not?

Secretary GOLDBERG. Yes, I am very encouraged by the fact that private industry is moving in this area. I would like, if I may, Mr. Chairman, to offer for the record the report of the President's Advisory Committee on Labor and Management on automation where the Committee analyzes the role of private industry, labor unions, and the Government in this area.

One of the things they point out, for example, and the businessmen on our Committee supported this, is that one of the important aspects of automation in human terms is the necessity for adequate leadtime to prepare for automation. That is adequate notification so that the people will know where they stand. This requires that private industry knows where it is going. Generally they do know but there has been a little reluctance in the past to share this knowledge so that people can adjust themselves and communities can adjust themselves. Every day we get notice of some change with enormous consequences not only to people but to local communities. You have that in your own State. Everybody is entitled to know this. Government sometimes is a big offender. We are having this problem in some of the aviation industry now that you have been reading about in the paper where, as the result of a necessary change in Government policy, there are great impacts upon employers, upon workers, and upon local communities, so that this is an important part. (The report referred to follows:)

AUTOMATION

(By the President's Advisory Committee on Labor-Management Policy)

PRESIDENT'S ADVISORY COMMITTEE ON LABOR-MANAGEMENT POLICY

Arthur J. Goldberg, chairman, Secretary of Labor.

Luther H. Hodges, vice chairman, Secretary of Commerce.

Elliott V. Bell, chairman of the executive committee, McGraw-Hill Publishing Co., Inc.

Joseph L. Block, chairman, board of directors, Inland Steel Co.

Dr. Arthur F. Burns, president, National Bureau of Economic Research.

David L. Cole, attorney and arbitrator.

David Dubinsky, president, International Ladies' Garment Workers' Union.

Henry Ford II, chairman, board of directors, Ford Motor Co.

John M. Franklin, chairman, board of directors, United States Lines Co.

George M. Harrison, president, Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees.

Joseph D. Keenan, secretary, International Brotherhood of Electrical Workers. Thomas Kennedy, president, United Mine Workers of America.

Dr. Clark Kerr, president, University of California.

J. Spencer Love, chairman and president, Burlington Industries, Inc.

David J. McDonald, president, United Steelworkers of America.

Ralph E. McGill, publisher, the Atlanta Constitution.

George Meany, president, American Federation of Labor and Congress of Industrial Organizations.

Walter P. Reuther, president, International Union, United Automobile Aircraft, and Agricultural Implement Workers of America.

Richard S. Reynolds, Jr., president, Reynolds Metals Co.

Dr. George W. Taylor, professor of labor relations; Wharton School of Finance, University of Pennsylvania.

Thomas J. Watson, Jr., president, International Business Machines Corp.

W. Willard Wirtz, executive director, Under Secretary of Labor.

Harry Weiss, assistant executive director.

This report to the President by his Advisory Committee on Labor-Management Policy deals with the benefits and problems incident to automation and other technological advances, one of the topics assigned to the Committee for consideration by Executive Order 10918. The report contains 11 recommendations for accomplishing, by a combination of private and governmental action, the necessary advancement of automation and technological change without detrimental sacrifice of human values.

This first report has the overall approval of all but two of the Committee's voting members. The two statements of separate views are included as part of the report. A footnote to the report records the view of five of the Committee members regarding the shorter work period issue.

This first report will be followed by others in the Committee's field of responsibility. Currently in preparation are recommendations concerning free and responsible collective bargaining and industrial peace, economic growth and unemployment, sound wage and price policies, and policies to ensure that American products are competitive in world markets.

The PRESIDENT,

PRESIDENT'S ADVISORY COMMITTEE

The White House, Washington, D.C.

ON LABOR-MANAGEMENT POLICY,
Washington, D.C., January 11, 1962.

DEAR MR. PRESIDENT: We are pleased to submit the first formal report of your Advisory Committee on Labor-Management Policy. This report, dealing with "Benefits and Problems Incident to Automation and Other Technological Advances," was approved at a meeting of the full Committee today.

When you established this Committee last year, you expressed the hope that it would "help restore that sense of common purpose which has strengthened our Nation in times of emergency and generate a climate conducive to cooperation and resolution of differences." It is a source of deep satisfaction to us that this first report eloquently reflects that "sense of common purpose." There is unanimous agreement among the members on these fundamental points:

1. Automation and technological progress are essential to the general welfare, the economic strength, and the defense of the Nation.

2. This progress can and must be achieved without the sacrifice of human values.

3. Achievement of technological progress without sacrifice of human values requires a combination of private and governmental action, consonant with the principles of a free society.

This agreement reflects the Committee's conclusion that "automation and technological change have meant much to our country.' The report as a whole has received the virtually unanimous endorsement of the Committee, while there are understandably some differences on implementation of these objectives. Statements of the separate views of two members of the Committee are appended to the report, and the positions of several members on one particular point are set out in two footnotes. Because the statement represents a consensus of the Committee members' views, their individual statements of position on various points covered would differ in some respects.

It is also a pleasure for us to report that the Committee has met regularly since it was appointed on February 16, 1961, and that the discussions at the Committee meetings have been most friendly and constructive. Our experience has demon

strated that your objective of bringing together top leaders of labor, management, and the public to arrive at a fuller understanding on vital policy issues can be achieved. We anticipate that recommendations concerning the other major topics assigned to the Committee-dealing with industrial peace, economic growth, wageprice policy, and world competition-will be forthcoming in the near future. We commend to you the substantial public service rendered by the members of the Committee, who have dedicated themselves to the work of the Committee. Respectfully,

ARTHUR J. GOLDBERG,

Chairman. Vice Chairman.

LUTHER H. HODGES,

THE BENEFITS AND PROBLEMS INCIDENT TO AUTOMATION AND OTHER TECHNOLOGICAL ADVANCES

Three central propositions have emerged in the committee's consideration of the significance and impact of automation and other technological advances. First, automation and technological progress are essential to the general welfare, the economic strength, and the defense of the Nation.

Second, this progress can and must be achieved without the sacrifice of human values and without inequitable cost in terms of individual interests.

Third, the achievement of maximum technological development with adequate safeguards against economic injury to individuals depends upon a combination of private and governmental action, consonant with the principles of the free society.

Automation and technological change have meant much to our country. Today the average worker in the United States works shorter hours, turns out more goods, receives higher wages, and has more energy harnessed and working with him than a worker anywhere else in the world. Increasingly, machines are relieving men of heavy physical labor and of dangerous and repetitive work. Competition in the world markets has been possible against foreign countries whose Standards of living are below our own, though this advantage is diminishing. Finally, in a world split by ideological differences, automation and technological change have a tremendous and crucial role to play in maintaining the strength of the free world.

For these reasons, we emphasize at the outset the imperative need for and desirability of automation and technological change. Indeed, increased productivity and fuller utilization of resources are urgently needed to improve our rate of economic growth. They are likewise needed to improve our competitive position in world markets. Failure to advance technologically and to otherwise increase the productivity of our economy would bring on much more serious unemployment and related social problems than any we now face.

It is equally true that the current rate of technological advance has created social problems and that an acceleration of this rate may intensify these problems. While advancing technology has given rise to new industries and jobs, it has also resulted in employee displacement; and the fact that new work opportunities are eventually created is no comfort or help to the displaced individual who cannot, for one reason or another, secure comparable or any employment. While employment has expanded in some industries, the net effect of rising output per worker, of the growing labor force, and of other factors has been an increase in the volume of unemployment during the past few years-even as total employment has reached new heights.

The impact of technology on agricultural employment has been particularly great. Along with other factors, it has resulted in over 1,600,000 workers-20 percent of the total leaving the farms since 1950. Yet farm output has increased 28 percent, making available to our people an abundance of food, while there was famine in some of the Communist countries. This increased output enabled this country to be of substantial assistance to needy people elsewhere in the world. Our purpose, then, is to seek that course of action which will encourage essential progress in the form of automation and technological change, while meeting at the same time the social consequences such change creates.

We recognize that the subject of automation and technological change cannot be dealt with apart from two broader subjects: increased productivity in general, and unemployment.

We are preparing a separate report on economic growth, and only note here the basic importance of such growth to any consideration of the problems-and the opportunities-automation and technological advance present.