Approximately 29.4 percent of the unfair labor practice charges filed in the regions are found to be based upon a violation of the statute or, in other words, have merit. When the unfair labor practice case is a meritorious one, one of two things can happen. It can be voluntarily resolved or disposed of by the parties before the complaint issues or the Government issues a complaint against the respondent and the formal Board processes are involved. The trial which follows is handled by a member of the region's legal staff before a trial examiner of the Board. The case, unless further mutual and voluntary understanding between the parties takes place or the respondent accepts the Board order, may reach the U.S. Supreme Court.

Of the merit package, approximately two-thirds of the charges have been voluntarily disposed of in 1960 and 1961 by settlement either before or after issuance of the complaint.

WHY WE NEED THE APPROPRIATION

The agency believes that the long-range trend of rising case intake that started in fiscal year 1958 will continue. You will recall from our last appearance that the agency was concerned whether the rising intake problem had been properly estimated by it. It turned out that we were forced to return with a revised upward estimate for fiscal year 1962 before the Congress had completed deliberations on the 1962 budget. Our revised estimate was an improvement but was still slightly underestimated.

Today the indicators are sufficiently clear for us to measure the high and rising caseload more timely than last year. For 1962 the agency estimates an increase over fiscal year 1962 estimate of 12 percent to 14,600 unfair labor practice cases and an increase of 9 percent to 12,300 representation cases.

The increase in funds sought (approximately 6 percent) is only half of the amount necessary to take care of the increase in caseload on an arithmetical basis. The difference is deliberate. Part of the saving arises out of estimated improved productivity rates for fiscal year 1963 (2 percent over fiscal year 1962 estimate), which lowers the need for additional manpower above the requested amount. We hope for additional saving by still further increasing the proportion of voluntary adjustments of merit cases before there is a need for extensive litigation. But while it is our hope, and we will do our best to further even more the voluntary processes of the act, we cannot be so bold as to predict or forecast with any great precision an increased amount of voluntary dispositions because of so many factors which can stand in the way of settlement. Our appropriations request is predicated, however, on the assumption that we can handle a 10-percent rise in workload with less than a 6-percent rise in estimated funds.

HIGHLIGHTS OF PERFORMANCE IN CALENDAR YEAR 1961

Despite the rising caseload in fiscal year 1961 and the first half of fiscal 1962, the Office of the General Counsel and the regional offices, as always, tried to do its work justly and on time, and to stay on the same high level of time and performance reached in 1960-the highest previous year in history.

The more detailed Summary Calendar Year Report of the Office of the General Counsel for 1961 shows that this objective was achieved and in some areas the office has surpassed the high performance level of 1960. There was also a substantial time saving in the handling of representation cases under the May 1961delegation of the Board, which, in addition to the increasing caseload, added materially to the work of the regions. Attached is a profile chart graphically showing some of these major improvements.

Some highlights of regional office performance in calendar 1961 are the following: 1. Total case intake in the field (unfair labor charges and representation petitions) was 24 percent higher than 1958 and 9 percent higher than 196024,005 in 1961; 22,106 in 1960; 21,501 in 1959; and 19,383 in 1958.

2. Despite record intake in 1961, the average age of cases pending under investigation from month to month was only 21 days, compared to 21 in 1960, 28 in 1959, and 54 in 1958.

3. The average number of cases pending under investigation from month to month in 1961 was 1,150 compared with 986 in 1960, 1,486 in 1959, and 2,563 in 1958.

4. Monthly unfair labor practice dispositions in 1961 kept pace with monthly intake-average monthly case intake was 1,090, and average monthly dispositions:

1,059.

5. Median time required to proceed from filing of charge to issuance of com-plaint in 1961 was 46 days, compared to 44 in 1960, 73 in 1959, and 143.5 in 1958..

6. Median time required to go from filing of charge to close of hearing before a trial examiner was 87 days in 1961, compared to 91 in 1960, 136.5 in 1959 and 192 in 1958.

7. Pursuant to the May 15 delegation of representation decision-writing functions to the regions, 1,045 regional director decisions issued in 1961 in a median of 44 days.

8. The average time required to produce reports on objections and challenges to elections was 29 days in 1961, compared to 33.3 days in 1960, 52.8 days in 1959, and 76.7 days in 1958.

9. The number of unfair labor practice charges found meritorious was 29.4 percent of the total charges filed, compared to 29.5 in 1960, 29.1 in 1959, and 21.3 in 1958.

10. Complaints issued in 1961 totaled 1,286, compared to 1,261 in 1960, 1,237 in 1959, and 672 in 1958.

11. Representation petitions resulting in an election agreement or requiring a hearing and formal decision comprised 70 percent of the total filed in 1961, compared to 71.9 in 1960, 71.5 in 1959, and 68.4 in 1958.

12. Representation elections conducted by the Office of the General Counsel totaled 7,017 in 1961, compared to 6,805 in 1960, 6,241 in 1959, and 4,675 in 1958. 13. Unfair labor practice cases won, in whole or in part, before the trial examiners and the Board comprised 79 percent of the total compared to 77 percent in 1960.

14. Backpay received by employees illegally discharged in 1961 was $1,650,363, compared to $1,263,132 in 1960, $846,170 in 1959, and $877,878 in 1958. Employees illegally discharged and offered reinstatement totaled 2,349; of these, 1,591 accepted reinstatement.

15. In 1961, the rate of voluntary settlement was 62 percent, compared to 66 percent in 1960, and 47.6 percent in 1959. Adding an additional 12 percent of meritorious cases voluntarily adjusted outside of regional processes, the total voluntarily adjusted amounted to 74 percent.

16. Recruitment efforts during 1961 were concentrated on qualified field examiners. Examiners hired totaled 30 in 1961, compared to 23 in 1960, and 4 in 1958. The turnover rate in the Office of the General Counsel in 1961 was approximately 9 percent which is lower than other agencies, but still a matter of serious Office of the General Counsel concern and attention. Throughout the Office of the General Counsel there were 281 promotions in calendar year 1961, compared with 239 in 1960, and 152 in 1959.

We believe that the ability to stay at this high level of performance was substantially contributed to by the Office through the development of the program called Operation Challenge II, designed to improve performance in many ways, particularly settlements, compliance, and excellence of investigations and trials.

OBJECTIVES IN FISCAL YEAR 1963

We have noted some but not all of the important improvements of calendar year 1961. No amount of reference to past improvements will insure success in 1963. What we have learned in 1961 and thus far in 1962 is the beginning of improvement. Whether we make further advance depends on how well we meet the challenge of an exceptionally high and rising caseload.

In fiscal year 1963, and during the remainder of fiscal 1962, it is the objective of the Office of the General Counsel:

1. To continue on the same high plateau of time and quality performance achieved in 1960 and 1961.

2. To try to give even more emphasis to the voluntary settlement of meritorious cases by the parties.

3. To bring the benefits of the act speedily to parties using our processes through timely, voluntary, fair, and more meaningful compliance with Board and court decisions.

I have come before you many times in many years for appropriations for labor agencies. This committee has always been understanding and responsive to the requirements necessary to support effective labor-management relations in the country. You have been a real friend where support of the Government's role in industrial relations was concerned. For this I am appreciative because of what it has meant in better public service. This thanks is not just a formality, I can assure you. I am sorry that we continue to come before you and ask for more money most of the time. I know that we are fortunate to have this committee which understands our problems and responsibilities under the statute. Thank you.

ANTICIPATED INCREASE IN POSITIONS

Mr. ROTHMAN. I would like to make just a few observations, without duplicating the remarks of Mr. McCulloch.

I might point out that the General Counsel by statute exercises. general supervision over the agency's 28 regional offices. It is there that the greater part of the agency's caseload by volume is handled. Eighty-five percent of all unfair labor practice charges are disposed of in the regions. The agency estimates a 12-percent increase in the unfair labor practice cases over the 1962 estimate, an increase to 14,600 unfair labor practice cases, and an increase of 9 percent in representation cases, an increase to 12,300 petitions.

Our appropriation request is predicated on the assumption that we can handle a 10-percent rise in workload with less than a 6-percent rise in case-handling funds, the savings representing an increase in productivity throughout the agency.

In addition, the work being done today is being done currently without backlog in the Office of the General Counsel and with programs looking for the elimination of backlogs throughout the agency, as was so ably presented by the Board Chairman.

I should like to mention a few highlights in regional office performance in calendar year 1961.

For example, despite the record intake of cases in 1961, the average age of cases pending under investigation, from month to month, was only 21 days compared to 21 days in 1960, 28 in 1959 and 54 days in 1958.

The average number of cases pending under investigation from month to month in 1961, was 1,150 compared to 1,986 in 1960; 1,486 in 1959, and 2,562 in 1958.

COMPARISON OF TIME UTILIZED IN PROCESSING CASES

This shows that despite the increase in caseload, we are able to stay current from month to month because we dispose of approximately the same number of cases received per month. The median time required to proceed from the filing of the charge to the issuing of the complaint, in an unfair labor practice case, in 1961, was 46 days compared to 44 in 1960 but 73 in 1959 and 143.5 in 1958. The median time required to go from the filing of the charge to the close of the hearing before the trial examiner, was 87 days in 1961 compared to 81 in 1960, but 136.5 days in 1959 and 192 days in 1958, as the Chairman mentioned.

Under the representation case delegation to the regional directors of May 15, 1961, over 1,000 cases were disposed of in the regions in a median time of 44 days, or about half the time it took previously.

These are just a few of the highlights of regional performance. Whether we make further advances depends on how well we meet the challenge of an exceptionally high, still-rising caseload. Senator BYRD. Your agency has 28 regional offices?

Mr. ROTHMAN. Yes, sir.

Senator BYRD. How is West Virginia served?

Mr. ROTHMAN. West Virginia is served by the Cincinnati, Pittsburgh, and Baltimore regions.

COMPARISON OF CASE WORKLOAD

Senator BYRD. What is the caseload from West Virginia as compared with other States?

Mr. ROTHMAN. Not particularly heavy, but I would have to supply that figure for the record. I could not tell you the exact number but, relatively speaking, we do not consider West Virginia a State with a particularly large volume of business.

Senator BYRD. What is the workload of the Cincinnati office as compared with other regional offices?

Mr. ROTHMAN. The Cincinnati regional office is considered a medium-sized office. It is not as large, for example, as New York, Boston, Chicago, Los Angeles, even Seattle, but it is larger than such offices as Albuquerque, Minneapolis, and so on. We rate it in about the middle.

Senator BYRD. Would your workload be facilitated by the creation of an additional regional office in West Virginia, for instance?

Mr. ROTHMAN. I would doubt very much, sir, whether the creation of a regional office in West Virginia would be justified.

We have made and are making certain studies along these lines. There are some parts of the country where there is justification for having a resident agent to be on the spot and in a position to deal more directly with the parties that use the services of the Board.

Senator BYRD. Is there such a resident agent in West Virginia? Mr. ROTHMAN. No, sir; there is not.

Senator BYRD. Would it be advisable to create such a position in West Virginia?

Mr. ROTHMAN. Up to this time, we have not felt there has been a need for it, and it can be served from Cincinnati. There are some travel problems, but we have not considered that West Virginia justified a resident agent of its own.

I might add in that regard that if a resident agent were justified in West Virginia, certainly resident agents would be justified in almost any industrial center of the country and instead of 28 regional offices and a few field offices, we would have many, many offices.

It would create a major problem to treat the present caseload in West Virginia as a sufficient standard to justify a resident office. Our job, of course, is to so do our work that all parts of the country are served as timely and as rapidly as possible.

INCREASE IN POSITIONS

Senator BYRD. I would like to ask the Chairman this question. The request is made for an increase of 68 positions over the 1,996 permanent positions authorized in 1962 appropriations. How much of an increase was allowed in the 1962 appropriations over the previous year?

Mr. McCULLOCH. The Director of Administration advises me it was 176 positions.

Senator BYRD. How much of the $261,000 would be required for the 68 additional positions? For the record, what is the figure?

NOTE.-In fiscal year 1961 less than 400 units of work were filed in West Virginia whereas the average for all 50 States ran between 950 and 1,000 units per State. The average regional office received in excess of 1,700 units, ranging from 700 to 4,000 units.