Reducing industrial accidents Accidents and their consequences, both socially and economically, represent an increasingly difficult national problem. Although primarily concerned with industrial accidents, the Bureau through its various programs seeks to promote safety in areas of broad public interest and concern. Overall, the total annual cost of the more than 100,000 accidental deaths and 10 million disabling injuries is estimated to exceed $16 billion. In the industrial sector some 14,000 workers are killed yearly on their jobs and over 2 million are injured. Workmen's compensation costs now approximate $2,750 million each year. Accidents to workers are on the increase nationally; the current all-manufacturing injury frequency rate has risen in recent months and forecasters predict a continuing upward swing. On the other hand, safety programs for which the Bureau has been responsible are showing a downward trend. Maritime Since the inception of our maritime safety program in 1960, injury rates have been reduced by more than 30 percent. This is significant in light of static or upward national trends. The injury rate in longshoring for 1960 was 131.8 disabling injuries per million man-hours worked; the preliminary 1965 rate was 87. The shipyard rate in 1960 was 39.3. It dropped to 25 in 1965. These injury reductions are also producing dollar savings to the industries covered by the Bureau's safety regulations. Just recently the State of New Jersey published new reduced insurance rates for the longshore industry. Similar experiences have been reported elsewhere. During fiscal year 1965, the Bureau inspected 15,000 longshore and 6,000 shipyard operations and issued 2,900 violation notices. To date 33 enforcement actions have been initiated. Staff personnel trained 19,000 industry personnel, and made about 9,000 contacts to provide special safety services and advice to employers and unions. Federal employees Federal agency injury rates during the past decade have not reflected an appreciable overall improvement. The 1964 rate of 7.7 was identical with that of 1954-the previous low point of a plateau which has existed virtually since the end of World War II. Meanwhile, the cost of injuries moves steadily upward and now is almost 50 percent above the mid-1950's. Alerted by the Secretary of Labor to this waste of manpower, money, and materials, President Johnson on February 16, 1965, launched Mission Safety 70, calling upon all Federal departments and agencies to take steps to reduce their injury frequency and their costs 30 percent by 1970. A reduction of this magnitude will save 200 lives, 45,000 injuries and $250 million. Since more than 50 percent of Federal employees work in agencies which have frequency rates below the Safety 70 target and many agencies have had better records in the past the goals are practicable and attainable. We are currently working with all Federal agencies here and in the field in implementing the President's directive. During 1965, the Bureau provided 237 specialized safety services to officials of Federal installations; conducted 136 supervisory courses for 3,445 Federal employees; and developed 8 special sessions for 350 specially selected employees of key agencies. State, industry, and union safety The 1964 accident-frequency rate for manufacturing was 12.7, up from 12.1 in 1963, an increase of over 5 percent. In an attempt to provide as much help as possible to the States, the Bureau, in 1965, trained State safety employees and private industrial groups and gave engineering consultative services in 44 States. Nearly 2,700 State people were trained in 62 (30-hour) courses. The Bureau also conducted 15 courses in the construction industry program sponsored by the Associated General Contractors and the States. Currently, the Bureau is developing an instructor's guide on construction safety for national distribution. National and international unions received 310 training courses and sessions for 8,000 members. Two special courses for the International Operating Engineers were conducted. Union training services are being stepped up to educate local labor groups in their responsible role toward the safety of their membership. Technical and research services The Bureau is revising its technical manuals and training courses in the form of instructor outline bulletins which can be more readily obtained and used by States, industry, colleges, and trade schools to do their own training and education. Code comparison studies are being updated and expanded to assist State and other regulatory bodies in their standards work. Special chemical and industrial hygiene problems are being studied for our maritime and other programs. Illustrative of the areas where the Bureaus will seek improvements within the means at its disposal are— The increased maritime job hazards and exposures arising out of the Vietnam buildup where inexperienced labor is used in shipyards and on the waterfront; for example, a 36-percent jump in longshore injuries in the port of San Francisco during 1965. The inadequate and insufficient number of safety standards that are being developed to safeguard new work processes, materials, and products. The slow progress recorded by many States in meeting the work hazards engendered by new techniques and technology. The almost total lack of safety education being integrated into formalized job skill programs. The lack of suitable safety programs and educational resources in smaller communities and out-of-the-way places where formalized training, inspections, and codes are nonexistent or inadequate. Improving working conditions of wage earners The advancement, adoption, and amendment of legislative measures to improve conditions of work is typically a lengthy and often tedious process. Many complex and unpredictable factors accelerate, retard, or neutralize each other. Also woven into the fabric of this democratic process are economic, social, and political pressures which in turn speed, slacken, or shift the emphasis or direction. The year 1965, legislatively, was one of those unusual periods when the mainstream of forces converged to generate a substantial body of Federal and State legislation. More activity in the field of State labor legislation occurred in 1965 than in any comparable period since the 1930's. Forty-seven States and Puerto Rico met in regular session. Over 6,000 bills affecting labor conditions were introduced and more than 700 of these enacted into law. The laws adopted or amended covered a broad range of labor standards. The progress made in the fields of minimum wages, workmen's compensation, discrimination in employment, and occupational safety and health had special significance because of the clear correlation between sound labor standards and social and economic health and wellbeing. More than 2,000 technical assistance services flowing out to all 50 States were given by the Bureau during 1965 as part of this increased legislative activity and interest. Moreover, an analysis and portrayal of legislative actions over the most recent 5-year period, embracing three biennial legislative sessions in the great majority of States (1961, 1963, 1965), reveals a modest upward trend in the tempo of State activity. In 11 significant "standards" areas an aggregate total of 708 legislative actions were taken with heavy concentrations in workmen's compensation (153); fair employment practices (94); and minimum wages (47). In evaluating this progress, however, it is significant that a substantial number of States still lack laws in most of these subject areas. For example, in the minimum wage field, there are still 13 States with no laws enacted in this important area and 3 additional States with wage board laws which have no wage orders in effect. Of equal, if not more significance, is the fact that the vast majority of the laws presently in effect in all the subject areas fall far short of meeting the basic recommended standards. Of the 39 State laws in effect, only 23 are applicable to men; only 24 provide for a statutory minimum: only 17 of the 39 laws meet the standard of $1.25 an hour; and only 4 laws contain statutory provisions for overtime pay. In workmen's compensation, notwithstanding laws in effect in all States and the District of Columbia and Puerto Rico, there are wide gaps and weaknesses. For example, not a single law can meet all 16 recommended standards and only 20 laws can meet at least half of these standards. Gaps include lack of compulsory coverage in 23 States, only partial coverage of occupational diseases in 20 laws, and 47 laws which fail to provide cash benefits of not less than 66% percent of average wages in States for temporary total disability. These appraisals are not presented in a critical vein nor to discount the advances achieved. They are simply illustrative of the gulf that so frequently separates standards from actuality despite improvements that occur from time to time. Such appraisals also help to set future goals; they indicate the unmet needs. It is to these unfinished tasks that much of the Bureau's efforts must be devoted in association with other organizations, public and private. It is significant that the Council of State Governments, in suggesting legislation to the States in 1966, included in its program, for the first time, legislation with respect to minimum wages and wage payment and wage collection after considering the suggested language prepared by the Bureau for the guidance of the States in these two subject areas. It is equally significant that the Bureau has worked with the Council of State Governments in preparing a comprehensive draft of a workmen's compensation and rehabilitation law which has met widespread approval. In 1967, the Bureau will stress the adoption of the provisions recommended in this draft. The Bureau also will continue to work closely with the Atomic Energy Commission in joint programs to assist the States in improving their workmen's compensation laws to meet the problems arising from radiation injury cases. Additional contract studies will be negotiated by the Bureau and the Atomic Energy Commission to carry forward this program and specific plans will be developed and promoted to stimulate action by the States. The enactment of the Economic Opportunity Act has given new impetus to the Bureau's program in the promotion of good working and living conditions for migrant and seasonal agricultural workers and in the acceptance of recommended standards for the employment and safety of younger workers. Regional consultants assisted States and local community organizations in formulating migrant farmworker programs. Technical advice was provided the Neighborhood Youth Corps (NYC) and Job Corps programs on labor standards to be incorporated in the regulations and contracts affecting such projects. In the area of youth safety, technical advisory services have been made available to the administrators of these programs. Staff assisted the Job Corps in developing procedures for establishing a comprehensive safety program, and will continue to serve with personnel from other agencies on Job Corps safety advisory panel. Advisory services, including furnishing training and safety promotional aids, were provided to the Neighborhood Youth Corps for establishing safety programs for enrollees. For fiscal 1967, the program of the Bureau in the field of youth standards will concentrate upon the protective standards aspect of safeguarding the employment of youth on a part-time or full-time basis. These activities include matters of appropriate job entry ages. saftey, school-work programs, and problems of on-the-job adjustment. An investigation of highway and street construction hazards for youth employment has been completed and the necessary action for possible adoption of a hazardous occupation order in this area will be taken this year. A final report on job accidents to young workers based upon monthby-month reports from 28 cooperating States is also scheduled for completion in 1966. Recommendations were prepared this year relating to the need for revision of Child Labor Regulation No. 3 and plans to carry out these recommendations in 1966 and 1967 are being made. These projected avenues of action emphasize the increasing awareness of the importance of sound labor standards, not only as a basic instrument in attaining higher living conditions but also in sustaining an effective manpower program. Manpower problems have been attacked on many fronts with heavy emphasis on increasing employment opportunities and lowering unemploymentbut bringing jobs and workers together is not enough. Suitable working conditions are also needed if job stability, living standards, and increased productivity are to be maintained. Thus, to coin a phrase, "manpower maintenance" via appropriate labor standards becomes a basic ingredient of balanced manpower programs, at both State and Federal levels. It is the handmaiden of manpower training and utilization-an essential part of an expanding healthy economy. GENERAL STATEMENT Mr. BORTZ. First as you will note, the Bureau of Labor Standards is asking for $3,349,000 for fiscal 1967. This is an increase of $78,500 over our 1966 budget, a decrease of 1 position, making the total number of positions 264. The five summary observations, Mr. Chairman, which I would like to make in terms of pointing out our areas of activity, are these: STATE LEGISLATIVE ACTION First, in terms of State legislative actions in the field of labor standards, 1965 was, I believe, the greatest year in the last quarter of a century. But, despite the progress that was made, serious gaps and shortcomings still exist. We have as part of our budget submission, I believe it is page 16. a summary of activities in the States over the past 5 years, and I call it to your attention because I think it gives a picture of both and problems and shortcomings. RISING TREND IN ACCIDENTS AND INJURIES progress Second, various indicators reflect a rising trend of accidents and injuries as we move into a tighter labor market and expand our use of new and sometimes exotic materials, chemicals, machinery, and sophisticated systems of manufacturing and construction. Third, in maritime safety areas of longshoring and shipyards, which is a direct Bureau responsibility, the favorable downward trend in injuries continued in 1965 but we have no assurance, frankly, that this record can be maintained in 1966. MISSION SAFETY 70 Fourth, in another area of direct Bureau concern-Federal employee safety-Mission Safety 70 was instituted by the President a year ago. It has generated greater attention in the area of accident prevention and costs in Federal agencies than in any time in the past, and results are beginning to appear. MANPOWER MAINTENANCE Then finally, my fifth observation, our assessment of the dimensions of the manpower and labor standards needs suggest that increasing emphasis should be placed upon the broadest possible application of standards-safety, workmen's compensation, minimum wages, youth employment, and protection of youth-to assure a concept of what I call manpower maintenance, wherein the training, skills, and productivity and the income of workers are soundly protected and steadily strengthened. That, Mr. Chairman, is all that I have to say at this time. BUDGET REQUEST Mr. FOGARTY. Your adjusted appropriation for 1966 is $3,270,500 and the request for 1967 is $3,349,000, an increase of $78,500. This is not enough to cover the increased mandatory costs, is it? Mr. BORTZ. I believe that is correct. PAYMENTS TO WORKING CAPITAL FUND Mr. FOGARTY. And the payments to the working capital fund are going to increase. Why is payment to that fund estimated to increase $37,000? Mr. BORTZ. There are, of course, a variety of services performed within the working capital fund which then are translated into bills to the various bureaus. Mr. FOGARTY. They have taken positions away from you and made you pay more into this fund. That doesn't seem quite right. Mr. BORTZ. I would share your view, Mr. Chairman. Mr. HUDSON. May I comment on that point? Mr. FOGARTY. Sure; go ahead. Mr. HUDSON. The billings to the Bureau of Labor Standards for central and administrative services are based on cost of operations. for 1965. This is an attempt to get money into their budget to permit them to continue to operate at the same level of usage as last year and not have to absorb any of these costs. REDUCTION IN NUMBER OF POSITIONS Mr. FOGARTY. It does not make sense to me even with that explanation when you are cutting them down on positions from 1966 to 1967. What effect will the reduction of two positions have on your activity in improving working conditions of wage earners? Mr. BORTZ. It will have a slight, certainly a minor, effect in terms of two positions. It will mean some curtailment in terms of one of our regional offices in the Pacific Northwest which will be closed, actually has been closed, and somewhat less work in the area of migratory labor. This is in the area of labor standards, sir. MISSION SAFETY 70 Mr. FOGARTY. Tell us what Mission Safety 70 is all about and what you feel the potential results will be. Mr. BORTZ. I will be delighted to describe the President's Mission Safety 70 to you. About a year ago, Secretary Wirtz, after reviewing the record and the trend of injuries to Federal employees, and the rising costs that are reflected in all the Government's figures and those of the Bureau of Employees Compensation, called this matter to the attention of the President, and the President last February 16, almost a year ago, issued a safety policy for the Federal service and also a memorandum |