Impact of T echnological C hange

and A utomation in t h e ______

Pulp and Paper Industry

Bulletin No. 1347

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREAU OF LABOR STA TISTIC S

Ewan Clague, Commissioner

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O TH E R BLS P U B LIC A TIO N S O N A U T O M A T IO N A N D P R O D U C TIV ITY

Implications of Automation and Other Technological Developments* A Selected Annotated Bibliography

(Bulletin 1319, 1962), 136 pp., 65 cents.

Describes over 500 books, articles, reports, speeches, conference proceedings, visual aids, and other

readily available materials published primarily since 1956*

Technological Change and Productivity in the Bituminous Coal Industry, 1920-60 (Bulletin 1305, 1961),

136 pp,, 65 cents.

Trends in technology and productivity and implications for employment, unemployment, wages, prices

and profits.

Impact of Automation (Bulletin 1287, 1960), 114 pp., 60 cents.

A collection of 20 articles about technological change, from the Monthly Labor Review.

Adjustments to the Introduction of Office Automation (Bulletin 1276, 1960), 86 pp., 50 cents.

A study of some implications of the installation of electronic data processing in 20 offices in

private industry, with special reference to older workers.

Studies of Automatic Technology (Free).

A series of case studies of plants introducing automation. Describes changes and implications for

productivity, employment, occupational requirements, and industrial relations.

A Case Study of a Company Manufacturing Electronic Equipment.

The Introduction of an Electronic Computer in a Large Insurance Company.

A Case Study of a Large Mechanized Bakery (Report 109^.

A Case Study of a Modernized Petroleum Refinery (Report 120).

A Case Study of an Automatic Airline Reservation System (Report 137).

Indexes of Output per Man-Hour for Selected Industries, 1939 and 1947*60. Annual Industry Series

(December 1961), 21 pp. Free.

Indexes of output per man-hour, output per employee, and unit labor requirements for 22 industries,

including coal and metal mining, various foods and fibers, basic steel, etc.

Trends in Output per Man-Hour in the Private Economy, 1909-1958 (Bulletin 1249, 1959), 93 pp., 50 cents.

Indexes of output per man-hour, output, and employment in major sectors. Analysis of trends and

factors affecting changes.

Labor Requirements for Federal Office Building Construction (Bulletin 1331, 1962), 43 pp., 35 cents.

The third of a series of studies of on-site and off-site labor requirements in each of the major

types of construction.

Sales publications may be purchased from the Superintendent of Documents, Washington 25, D. C., or from

regional offices of the Bureau of Labor Statistics at the addresses shown below. Free publications are

available, as long as the supply lasts, from the Bureau of Labor Statistics, U.S. Department of Labor,

Washington 25, D. C.

Regional Offices:

New England Region

18 Oliver Street

Boston 10, Mass.

North Central Region

105 West Adams Street

Chicago 3, 111.

Middle Atlantic Region

341 Ninth Avenue

New York 1, N.Y.

Southern Region

1371 Peachtree Street, NE»

Suite 540

Atlanta 9, Ga.

East Central Region

1365 Ontario Street

Cleveland 14, Ohio

Western Region

630 Sansome Street

San Francisco 11, Calif.

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IMPACT OF TECHNOLOGICAL CHANGE 

AND AUTOMATION IN THE

PULP AND PAPER INDUSTRY

Bulletin No. 1347

October 1962

UNITED STATES DEPARTMENT OF LABOR

W. Willard Wirtz, Secretary

BUREA U OF LABOR STA TISTIC S

Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Price 50 cents

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Preface

The benefits and problems of automation and other technological

changes have been described as one of the most urgent issues before the

Nation. New equipment, processes, and products may open opportunities for

investments, jobs, lower costs and prices, improved living standards, greater

leisure* and a stronger national defense. On the other hand, technological

advances may involve displacement of workers, requiring special measures to

prevent layoffs and to retrain workers for new skills.

This study examines some implications for automation and other technological advances in the pulp and paper Industry, a major industry undergoing

extensive change. Historically, technological changes in the industry have

been accompanied by expanded output and increased employment. Industry experts foresee further changes, with opportunities for growth and with new

problems of adjustment.

The study is part of the Bureau of Labor Statistics program on the

progress, outlook, and implications of technological change. Previous studies were generally confined to case studies of Individual plants and offices.

This bulletin presents a summary analysis of trends and outlook for the industry as a whole, in addition to illustrative case studies of adjustments

to technological changes at three plants.

The study is based on published data from the Bureau of Labor Statistics. the Bureau of the Census, trade and technical publications, and

information collected by the HLS directly from three plants through field

visits. The generous cooperation of the officials of the companies, dnions.

and trade associations visited is deeply appreciated.

This bulletin was prepared in the Bureau*s Division of Productivity

and Technological Developments, by Edgar Weinberg. Chief. Branch of Analysis

and Technological Studies, and Richard Riche. Bennett Moss participated in

the detailed case studies.

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Contents

Page

Introduction •••«••••••••••••••• 1

Highlights and summary ••••••••••••••• 3

Trends and outlook •••••••••«•••••• 3

Adjustments in three selected plants •••••••••• 4

Part I* Trends and outlook for the pulp and paper industry • • • 7

Development of the pulp and paper industry ••••••••• 7

Industrial revolution • ••••••*••••••• 7

Era of mass production •••••••••••••• 9

Post-World War II trends in output per man-hour* production*

employment, hours and earnings* and labor turnover • • • • • 11

Trends in technology and research •••••••••••• 18

Trend toward continuous automatic production ••••••• 18

Improved measurement* inspection* and control ••••••• 20

Development of new sources of raw materials «•••••• 23

Research and new products ••••••••••••• 25

Outlook for the 1960*s • 28

Part II* Selected Case Studies ................................ ... 30

Case study of mechanization of materials handling •••••• 31

Case study of the introduction of continuous processing equipment • 50

Case study of an automatic paper roll handling system • • • • • 67

Tablest

1* Average annual percent change in output per production

worker man-hour, selected periods* 1919-60 • • • • • 11

2* Production of paper and board* and percent increases by

grade* 1947 and 1960 •••.••••••••* 13

3* Woodroom of Plant As Horsepower installed and daily

capacity* before and after modernization •••••• 33

4* Woodroom of Plant At Ouptut per man-hour* and unit

man-hour requirements, before and after modernization • • 34

5* Woodroom of Plant A: Value of plant and equipment*

before and after modernization ••••••••• 35

6* Plant At Job status of workers formerly assigned to the old

woodroom 15 months after startup of the new system • « • 37

7* Plant At Grade status of woodroom workers who remained in

the unit, and of those who transferred to other plant

departments • * • • • • • • • • • • • • • • 38

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Contents— Continued

8* Classification of woodroom occupations, by job content,

before and after modernisation • »••••«•• 39

9* Average hourly wage rate and percent distribution of

woodroom employees by wage rate, before and after

modernization • •••.•••••••#•• 40

10. Plant At Composition of the work force, by occupation

or plant department, 1953 and 1958 •••••••• 41

11* Plant At Frequency of disabling injuries (per million

man-hours), total plant and woodroom, 1954*58 • • • • 44

12* Plant Ai Job status of woodroom workers 15 months after

startup of the woodroom, by age group • ••«••• 45

13, Plant Ai Results of union-management negotiations over

wage rates for selected woodroom occupations, based on

operating experience ••••••••••••• 49

14* Plant Bt Horsepower Installed, and daily capacity, before

and after technological change ••••••••• 52

15* Plant Bi Output per man-hour, and unit man-hour

requirements, semichemical pulping, before and after

technological change • ••••••••»••• 53

16* Plant Bt Value of plant and equipment, old and new

semichemical system •••••••••••«• 54

17, Plant Bi Percent distribution of unit costs in

semichemical pulping, before and after technological

change ••••••••••••••••• 55

18* Plant Bt Job status of digester room and diffuser room

workers after technological change • •••«••• 58

19, Plant Bt Grade status of workers in affected units

immediately after technological change ••••••• 57

20* Plant Bt Changes in job assignments and hourly wage rates

of the eight diffuser room employees whose jobs were

eliminated • ••••»••••..«.»• 58

21* Plant Bt Staffing pattern of digester room and Ho. 2

diffuser room, before and after technological change • . 59

22. Plant B: Distribution of digester room and No. 2 diffuser

room occupations by classification, before and after

technological change 60

23. Plant Bi Average hourly wage rate, and percent

distribution of employees by wage rate, before and after

technological change •••.•••«•••«• 62

24. Plant Bt Composition of the work force by occupation or

plant department, 1953 and 1958 ••••••••• 63

25. Plant Bt Average age, years of service, and wage rates

of workers in new jobs and in jobs eliminated . . . . 65

Tables— Continued* Page

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Contents— •Continued

26* Plant Ct Horsepower installed and dally capacity*

shipping operations, before and after technological

change ••••••••••••••••• 70

27* Plant Ct Output per man-hour, and unit man-hour

requirements, shipping operations, before and after

technolgoical change •••«••••••••• 70

28. Plant Ct Indexes of man-tours worked, output,and output

per man-tour, total plant, 1954-58 •••••••• 71

29. Plant Ct Job status of finishing and shipping department

employees 1 year after technological change • • • • • 72

30. Plant Cs Distribution of shipping occupations, by job

classification, before and after technological change « • 74

31* Plant Ct Average hourly wage rate, and percent

distribution of employees by wage rate, before and after

technological change ••••••••••••• 74

Charts*

1« Indexes of output, man-tours, and output per man-hour,

pulp, paper, and board industry, 1919-80 •••••• 12

2* Production and capacity of paper and board and percent

of capacity utilized, 1947-60 •••••••••• 14

3* Employment in the pulp, paper, and board industry, 1947-60 • 15

4* Percent changes in the distribution of employees and

establishments, pulp, paper, and board industry, 1947 to

1958, United States and census regions •«••••• 16

Appendix A* Tablest

A-l. Expenditures for new plant and equipment, pulp, paper,

and board mills, 1947-60 ••••••••••• 79

A-2* Capacity,and production of paper and board as a percent

of capacity, 1947w60 .••••••••••• 80

A-3* Indexes of output, production worker man-hours, and

output per production worker man-hour in the pulp,

paper and board industry, 1919-60 •••••••• 81

A-4* Indexes of output, man-hours, output per man-hour, and

unit labor requirements in the pulp, paper, and board

industry, 1939 and 1947-60 •••••••••• 82

A-5. Employment in the pulp, paper and board industry, 1947-60 83

A-6, Average weekly hours and average hourly and weekly

earnings of production workers in the pulp, paper, and

board industry, 1947-60 • • • • • • • • • • • 84

Tables— Continued*

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Contents— Continued

A-7* Employment in the pulp, paper, and board industry, by

region, 1947 and 1958 ................................ 85

A-8« Establishments in the paper and board industry, by

region, 1947 and 1958 •••••••••••« 86

A-9t Labor turnover rates (per 1,000 employees), pulp,

paper, and board industry, 1949-60 ••••••• 87

Appendix B, Selected Bibliography • • • • • • • • • • • 89

Tables— Continued i Page

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IMPACT OF TECHNOLOGICAL CHANGE AND AUTOMATION

IN THE PULP AND PAPER INDUSTRY

Introduction

This survey covers the nature, status, and outlook of some important technological innovations and some implications for trends in productivity, production, employment, occupational requirements, and industrial

relations practices in the pulp and paper Industry. Part I covers the industry as a whole and is based on previously published data, the statistics

covering mainly 1947-60. Part II presents case studies of adjustment to

specific technological changes at three selected plants, based on data

collected through field visits and interviews.

Industry Characteristics

In the text of this study, the term "pulp and paper" is used instead

of the full title, "pulp, paper, paperboard, and building paper and building

board." This term encompasses the 4 Standard Industrial Classification 1/ industries: pulp mills (SIC 261), which primarily manufacture various types of

pulp from pulp wood and other cellulose fibers; paper mills, except building

(SIC 262), which primarily produce various grades of paper, such as newsprint,

book, fine, and sanitary tissue; paperboard mills (SIC 263), which primarily

make various types of container board; and building paper and building board

mills (SIC 266), Which primarily produce different types of insulating board,

construction paper and fiber boards. Some of the larger plants integrate the

production of pulp, paper, and paperboard. In the appendix tables, the term,

"pulp, paper, and board" has the same coverage.

The pulp and paper industry group excludes establishments (SIC 264-

265) primarily engaged in converting paper and paperboard into finished products such as bags, boxes, and other containers. Although such plants are

sometimes under the same ownership and at the same location as plants in the

pulp and paper industry, they are classified in the paper products industry.

About 294,000 persons (BLS data) were employed in the industry in

I960. 1/ In 1958 there was a total of 802 pulp and paper establishments.

1/ U.S* Bureau of the Budget. Standard Industrial Classification

Manual— 1957 (Washington, U.S. Government Printing Office, 1957), pp. "75775.

The employment figure for 1960 differs from earlier BLS employment data

(275,300) because of recent comprehensive revisions in BLS employment and

earnings statistics. These changes reflect such factors as introducing the

1957 Standard Industrial Classification, adjustment of data to new benchmarks,

development of improved techniques, availability of more extensive basic data,

and inclusion of Alaska and Hawaii. Except for the employment figure cited

above (294,000 workers) and data on overtime hours (5.1), all other BLS data

on employment and earnings in the pulp and paper industry used in this Bulletin

are from an earlier series. Revised data for this industry are not available

for years prior to 1958, and are not comparable with previously published data

for 1958-60.

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2

Plants are located In about 500 communities, in more than 40 States* More

than 90 percent of the industry's production workers are covered by union

agreements* the majority with the United Papermakers and Paperworkers and

the International Brotherhood of Pulp* Sulphite and Paper Mill Workers*

The industry produces a vide variety of products* for both industrial and household uses* Most of the pulp produced by pulp mills is used

by paper and paperboard mills; some pulp* however, is sold to producers of

rayon* plastics, cellophane and related materials based on cellulose* Of

the total tonnage of paper and paperboard produced* about one-half is used

for packaging; nearly one-fourth for books* magazines and newspapers; about

one-tenth for writing papers; about one-tenth for building; and about onetwentieth for sanitary purposes* Exports amounted to about 3 percent of

total production in I960*

Some Qualifications

In assessing the findings of this bulletin* it is helpful to keep

in mind some difficulties of studying the implications of technological

change* Emphasis is on the adjustments to changes made by plants within

the pulp and paper industry* The data pertain primarily to the labor

aspects of such adjustments*

Industries* however* are interdependent* Technical changes in

papermaking, for example* result not only in savings of wood pulp* but also

chemicals, power* water* and other materials and services purchased from

other industries* The implications for employment in the supplying industries, as a result of such changes* are not readily determined through

available statistics.

Moreover* the development of improved equipment* processes* and

products increases the rate of technical obsolescence and affects the volume of investment in new plants and equipment* The volume of employment

generated by purchases of new papermaking plants and equipment, however*

is not readily estimated*

Finally, new, improved* and less costly pulp and paper products

have an impact on competitive markets such as those for textiles* steel*

and wood* and hence on employment in these industries* These effects also

are difficult to isolate from the complex of competitive factors.

In short* not all implications of technological change in the pulp

and paper industry can be covered in this study* A more complete description

of the ramifications of such changes depends on the assembling of additional

data on interindustry relationships and the interpretation of information on

industries related to papermaking*

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Highlights and Summary

Trends and Outlook

Trend Toward Automatic Production. The post-World War II period has been one

of significant technological changes in many phases of pulp and paper manufacturing with important Implications for employment and working conditions*

Mechanized handling of pulpwood and paper rolls* continuous pulp processing*

greater instrumentation* and semichemical pulp processing* reduce unit requirements for labor* capital* materials and fuel* The 1960*8 will probably see

wider application of these innovations. The plant of the future will probably

use more electronic equipment such as industrial television* radioisotope

gages* and electronic computers to improve control of operations* Some industry experts see a new era of far-reaching changes* affecting producers of

competitive materials as well as the industry* as more funds are channeled

into research to improve processes and develop new and better products*

Increased Output per Man-Hour* Output per production worker man-hour in the

pulp and paper industry increased at an average annual rate of 3*7 percent a

year during the 1947-60 period* This rate was over 50 percent above the longterm trend (1919-60) after two decades of slow growth during the Depression

and World War II* Technological advances will probably mean continued growth

in the 1960*s in output per man-hour at a rate above the long-term average*

More emphasis will probably be placed on modernization and efforts to improve

the efficiency of existing plants rather than on capacity expansion*

Production Growth. Physical output increased at an average annual rate of

4*5 percent during the 1947-60 period* only slightly above the long-term

growth rate* The postwar advance in production exceeded the growth rate of

output per production worker man-hour only by a small margin* Output is

expected to rise over the next few years but at a slower annual rate than

during the 1947-60 period* The 1960*s may see output per man-hour rise at

the same or a slightly faster rate than production*

Employment Implications. Employment in the pulp and paper industry increased

by 41,300 between 194f a n d 1960. The rate of increase was faster than that

in manufacturing employment as a whole. Production worker employment during

this period, however* rose relatively more slowly than administrative* professional, technical* and clerical employment* and between 1956 and 1960*

declined*

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The outlook for a significant increase in the level of employment

over the next few years appears limited. Mechanization of materials handling

operations and extension' of continuous processing reduce the opportunities

for semiskilled and unskilled workers. Administrative* technical* clerical*

and supervisory employees* on the other hand* constitute a growing proportion

of employment.

A slower growth of employment in the 1960's than in the 1950*s

may result in less flexibility in adjusting the work force of the industry

to changing technology. Also* in communities where pulp and paper plants

are located* this industry may not be as important a source of job opportunities for the expanding labor force of the 1960*s as it was in the 1950's.

Adjustments in Three Selected Plants

The potentialities and problems of Introducing some important technological changes that will probably be more widely used in the 1960's are

illustrated by the experience of three plants: one had installed advanced

materials handling equipment in woodroom operations; another* continuous

pulping; and the third* automatic devices for paper roll handling. Although

the study is limited to three plants* these case studies provide illustrative

information on some types of labor problems that may be encountered in the

future.

Introduction of Changes. Each innovation was part of a sequence of changes

whereby capacity of the entire mill was enlarged. This expansion provided

occasions for management to consider adoption of advanced technology that

would reduce costs of labor* materials* fuel* and capital per unit of output. Improvements in the efficiency of one operation required improvements

in others to achieve a balanced growth throughout the plant.

Increased Output per Man-Hour. The technological changes resulted in substantial increases in output per man-hour in particular operations. Because of

initial operating difficulties* however* these gains were not always realized

immediately. For each plant as a whole, the increase in output per man-hour

was significantly less than in the particular operation mechanized. The rise

in output per man-hour was accompanied by a sharp increase in the ratio of

plant and equipment and of horsepower to worker. Changes in capital per unit

of output varied; in one case* the ratio increased slightly; in another* the

innovation produced a saving in capital.

Displacement and Reassignment. The immediate result of the changes studied

in two of the three plants was the elimination of certain jobs and the reassignment of workers to other positions in the plant according to seniority

procedures. The extent to which this caused serious dislocations of workers

varied from plant to plant. Where the change involved only a moderate expansion of capacity and little increase in plant employment* reassignment of

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workers to avoid layoffs required extensive advance planning, including supplementing normal attrition by encouraging retirement of eligible employees,

opening up apprenticeship for an older worker, and hiring employees on a

temporary basis* Where the change accompanied a substantial increase in

capacity, displaced workers were absorbed by the need for additional workers,

and reassignments were made with little dislocation.

Upgrading and Downgrading* The extent of upgrading and downgrading created

by the change depended largely on special circumstances and the coverage and

size of the seniority unit* Where additional employees were needed to handle

a much greater output, former crews were promoted to better jobs. Severe down*

grading occurred at one plant, however, where employees in an entire seniority line were "bumped-back" temporarily to the extra board (a central labor

pool) at substantial reductions in wages. Because of the narrowness of the

seniority unit, however, some employees with less seniority who were working in the line of progression where new jobs were created were promoted to

better jobs.

Occupational Changes. Only a slight increase occurred in the average grade

level of production workers in the plants studied by the case approach. The

Introduction of more conveyor!zation and continuous processing, however,

produced a significant reduction in the proportion of laborers who moved

materials or manipulated machinery by hand. The new jobs required workers

to oversee a wider expanse of work flow, relate one processing step to another, and regulate operations by pushbutton control. Greater automation

also Increased the need for instrument repairmen. Despite the increase in

automatic operations, however, some manual operations still remained. In

the plant as a whole, the general trend in recent years has been toward

an increasing proportion of administrative, technical, professional, and

office workers. More formal education is now required for those entering

the technical and engineering occupations*

Training and Retraining. Workers assigned to the newly created positions

were retrained at company expense so that they could operate the new equipment. This training was given by company personnel and by representatives

from the equipment supplier. Where the change Involved mechanization of a

materials handling operation, training was brief and was provided on the

job. The introduction of a new continuous processing system required more

elaborate training, lectures, classroom instruction, and training manuals

in order to give the worker an understanding of the sequences of the steps

that he was monitoring. Workers transferring to existing jobs within affected departments or elsewhere within the plant received little formal

retraining, since they were generally able to acquire job proficiency on

the job. At one plant, however, some displaced maintenance employees

were assigned to a formal training program to upgrade maintenance skills.

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Implications for Safety and Working Conditions* The technological changes

appeared to offer significant opportunities for making the work environment

safer. For example, some workers monitor instruments from an enclosed air*

conditioned control room. Departments installing modern materials handling

equipment reported a decline in incidence of certain handling injuries and

strains, this evolved from a reduction in manual tasks and the removal of

certain hazards associated with older equipment. At one plant, however, the

frequency of injuries was higher until workers adjusted to new equipment

and procedures. Moreover, more powerful moving conveyors and high-speed

equipment constituted new hazards for severe injuries.

Older Worker and Changes. Employees age 45 and over generally benefited in

the three plants from the reduction in heavy physical labor. They had no

special difficulties in performing new tasks although the initial adjustment sometimes required a little time. The seniority system in general

protected the older worker in transfer and reassignment, but the extent

of protection in a particular case depended on the nature of the change

and the definition of the unit for purposes of computing seniority. Some

older workers encountered substantial downgrading in pay where the unit

was defined narrowly.

Establishment of Wage Rates. An important phase of installing the new technology was establishing wage rates for new jobs. The union agreements generally contained a special provision for initiating rate changes. One mill

used this period to make a systematic job analysis. Rates were generally

negotiated on a tentative basis, and later revised on the basis of actual

operating experiences. Another method was to set wage rates for the new

jobs cotqparable with similar jobs in other mills.

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Part I. Trends and Outlook for the Pulp and Paper Industry

Development of the Pulp and Paper Industry

Workers employed in pulp and paper mills are primarily engaged in

operating, controlling, and maintaining large complexes of mechanical and

chemical processing equipment* A modern integrated newsprint mill (600-ton

daily capacity) costs over $72 million to construct. The buildings are sometimes spread out over several acres. According to Census data, investment

per employee (i.e., gross value of depreciable assets) amounted to $22.6

thousand in 1957, or more than three times the investment per employee in

all manufacturing.

Paper is made by first converting wood into pulp (a moist semi solid

mass of vegetable matter) and processing this material into paper of a wide

variety of types and grades. Except for some steps at the beginning and end

of the production sequence, materials are moved from step to step in a semifluid state or as a continuous sheet by pumps, pipes, and moving conveyors,

with little direct intervention by workers. Sheets are made from pulp on

high-speed papermaking machines, some as large as three stories high and a

block long, where the pulp is deposited continuously on the rapidly moving

wire mesh screen to form a smooth wet sheet. This sheet is dried as it moves

over a series of large drums at speeds up to 2,600 feet per minute.

This highly mechanized technology is the culmination of many decades

of invention and research by scientists and inventors from many countries.

Advances in the search for a more abundant raw material, for improvements in

equipment and processes, and for the diversification of products were closely

interrelated. The development of papermaking up to the end of World War II

can be divided into two stages: the industrial revolution and the era of

mass production in the 20th century. The era of automation and research since

1947 is discussed in later chapters.

Industrial Revolution

The industrial revolution in the 19th century in the paper industry

was marked by five major developments: Substitution of mechanical power for

hand labor; discovery of more abundant raw material; development of chemical

pulping processes; development of special machinery; and a massive reduction

in unit labor requirements.

Mechanical Power for Hand Labor. The first steps toward replacing hand labor

by mechanical effort were the adoption first of the water wheel and later steam

as sources of power for beating rags into pulp. These methods replaced extensive series of separate, time-consuming hand washing, beating, and pressing

operations performed by small groups of workers.

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Broadening of Raw Material Supply* With the market for paper expanding, an

intensive search was initiated for new sources of cheap and abundant raw materials to replace rags which were becoming relatively scarce in relation to

demand. An important step toward mass production occurred in 1844 when

Friedrich Keller, a German, patented a practical mechanical method of obtaining fibers from wood, an abundant raw material hitherto unutilised. This

discovery established a basis for further expansion.

Chemical Pulping Processes. The three basic chemical pulping methods (soda,

sulphite, and sulphate) now in use, were developed in the second half of the

19th century by English, American, and German scientists. In all chemical

pulping methods, the first step is the reduction of pulpwood logs to small

chips. These chips are then cooked in a large, cylindrical steel tank called

a "digester" where chemicals, steam, and pressure combine to remove lignin

and other waste materials, leaving a residue of nearly pure cellulose. The

search for more efficient methods of obtaining pulp on a mass scale was pursued at the same time that revolutionary changes in printing were expanding

the mass market for paper.

Special Machinery. Along with the development of pulp making technology,

important steps in mechanising papermaking itself were taking place. The

introduction of the Fourdrinler papermaking machine proved to be a revolutionary contribution to mass production of paper. Continuous papermaking on this

machine contrasted sharply with early manufacturing methods which involved a

sequence of hand dipping and pressing operations. Sheets of paper were made

one at a time. By 1850, nearly every papermill in this country was using

Fourdrinler machines, which were developed in England in 1803 by the Fourdrinler

brothers. This machine consisted essentially of a rapidly moving wire screen

on which pulp was formed into a sheet and carried to a press for drying. Improvements were made so that manual handling of sheets was virtually eliminated.

Reduction in Unit Labor Requirements. The Industrial Revolution brought about

a massive reduction in laborrequirements per unit of output. Although there

are no overall measures of this shift from hand to machine labor, the comments

of Carroll 0. Wright, the first Commissioner of Labor, are enlightening:

It is very difficult to get at the exact displacement of labor in the manufacture of paper, but

a machine now used for drying and cutting, run by

4 men and 6 girls, will do the work formerly done

by 100 persons, and do it very much better. . . .

Six men can now produce as much per day on a given

sample as 100 men could produce in 1800 of an approximate grade. A well-known firm in New Hampshire

states that by the aid of machinery it produces three

times the quantity, with the same number of employees,

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that it did 20 years ago. In the manufacture of

wallpaper the best evidence puts the displacement

in the proportion of 100 to 1. 2/

Era of Mass Production

The first half of the 20th century may be described as an era of

mass production in the pulp and paper industry. Output and employment were

substantially increased as greater literacy, improved health and living

standards, and a larger population expanded the demand for paper products.

Major changes during this period encompassed more powerful and larger capacity

machinery, broadening of the sources of raw materials, and changes in the

industry's organization and structure.

More Powerful and Larger Capacity Equipment. A key factor which enabled the

industry to supply the mass demand for paper was the development of more

powerful and larger capacity equipment without a significant increase in number of operators required. One overall Indicator of this trend was the

tripling of horsepower per production worker between 1919 and 1954. 3/

An example of this trend was the fivefold increase in the horsepower of chippers. By the 1950's, chippers were being used to reduce logs

to chips for chemical pulping without first sawing them into pieces. Much

larger chipper discs, the large revolving face plate which holds the cutting

knives, were used. These large chippers were often used with hydraulic

barkers, which strip the bark off trees mechanically.

Another example of the trend was the introduction of larger and

more powerful grinders to produce mechanical pulp (groundwood). Until the

introduction of the artificial grinding stone in the middle twenties, the

most powerful grinder was rated at about 2,400 horsepower; modern grinders

are rated as high as 5,000 horsepower. The artificial stone allowed higher

operating pressures of wood against the stone, and increased machine speeds. 4/

Although the basic process remained unchanged, significant design

improvements in Fourdrinier papermaking machines were made after World War I.

The sectionalised machine drive, involving a separate motor drive for each

2/ Industrial Depressions. The First Annual Report of the Commissioner of Labor. March 1886. U.S. Department of the Interior, Bureau of

Labor. (Washington, U.S. Government Printing Office, 1886), p. 85.

3/ Derived from Census of Manufactures data.

4/ George S. Witham, Modern Pulp and Papermaking, 3d ed. Revised

and edited by John B. Calkin (New York, Reinhold Publishing Corp., 1957),

pp. 202-203.

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section of the paper machine, made possible substantially higher machine

speeds. As a result, average capacity of Fourdrinler machines more than

tripled between 1919 and 1947. 5/

Shifts in Sources of Raw Materials, (hie key change in papermaking was the

improvement and spread of the sulphate pulping process which made possible

the use of southern longleaf pine. Plants and jobs were expanded in Southern

States. By 1939, sulphate pulp accounted for 42 percent of all pulp produced.

Research by the U.S. Department of Agriculture's Forest Products

Laboratory and by Dr. Charles H. Herty, a noted chemist, contributed to this

growth. Another key step was the discovery by American chemists, building

on the work of European scientists, of ways of eliminating objectionable

chemical odors in this process.

Changes in the Industry's Organization and Structure. Important changes in

the organization and structure of pulp and paper companies accompanied the

introduction of mass production. Some of the largest corporations manufacturing paper today were founded during the era of growth between 1890 and

1920.

The beginning of the 20th century also saw the growth in unionism.

Although skilled workers had been organized prior to this period, the turn

of the century marked the beginning of the organization of the bulk of the

industry's workers. The extension of unionism throughout the industry continued during the 1930's.

Formal organizations were started to carry out research into the

chemistry and other aspects of papermaking. The Technical Association of the

Pulp and Paper Industry (TAPPI), established in 1913, and the Institute of

Paper Chemistry, established in 1929, conducted research that led to improvements in the quality and diversity of paper. Scientific methods began

to supplant the craftsmanship of papermakers of the 19th century.

3/ Derived from Census of Manufactures data

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Post-World War II Trent < In Output per Man-Hour* Production*

Employment, Hours and Earrings* and Labor Turnover

Statistical trends on output per man-hour* production* and employment afford a basis for gaging overall effects of post World War II technological changes* This chapter therefore reviews trends since 1947 in

relation to long-term trends in the industry* Trends in technology and the

outlook for the 1960*s are discussed in the following chapters*

Increasing Output Per Man-Hour

A partial* though useful* indicator of the pace of technological

change is the rise in output per man-hour* A rise in this ratio reflects

not only technical improvements* but also Such factors as shifts of production from low to high productivity plants* the exit of less efficient firms*

and changes in capacity utilization* technology* capital investment per

worker* layout and flow of material* skill of the work force* efficiency of

management* and labor-management relations* Although output is related to

the input of labor* the ratio does not measure the specific contribution of

labor* capital* or any other factor to production*

Output per production worker man-hour Increased by 66 percent

between 1947 and I960* The increase in output per production worker was

somewhat less* 59 percent* Output per employee increased by 48 percent*

reflecting the growing proportion of nonproduction workers in the industry.

(See chart 1 and table A-4*) Output per all employee man-hour increased

by 56 percent*

The average annual rate of increase in output per production worker

man-hour for the 1947-60 period— 3,7 percent per year— was substantially

higher than the 2*4-percent rate for the long-term period* 1919-60* (See

table 1*) This rate of increase during the 1947-60 period was only slightly

above the rate of 3*5 percent for all manufacturing industries during the

same period*

Table 1. Average annual percent change in output per production

worker man-hour, selected periods, 1919-60

Period

Average annual

percent change 1/

Long-term rate, 1 9 1 9 - 6 0...................• 2.4

Post-World War I decade, 1919-29 ........... 5.5

Depression decade, 1929-39 ................. 2.6

World War II period, 1939-47 ............... -2.2

Post-World War II period, 1947-60 ......... 3*7

1/ Average annual rates are based on the least squares trend of

the logarithms of the index numbers.

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It is noteworthy that the rate of increase in the post-World War II

period was below the 1919-29 rate when output per production worker man-hour

rose 5.5 percent a year* This was a period of intensive mechanization and

modernization of plant and equipment* During the depression decade of the

1930*s* output per man-hour continued to increase but at a lower rate. Shortages of equipment and of skilled labor and management underlie the World

War II decline.

Except for 1952, output per production worker man-hour increased in

every year since 1947. In 1950, 1955, and 1959, following recession periods,

the increases were substantially above the average for the entire period. In

1953 and 1957, however, the increases were substantially below average.

Chart 1. Indexes of Output, Man-Hours, and Output Per Man-Hour,

Pulp, Paper, and Board Industry, 1919-60

INDEX (1947=100)

Production Trends

Production of pulp and paper (BLS weighted Index) increased by

73 percent between 1947 and 1960. The rate of increase for the post-Wbrld

War II period— 4.5 percent a year— was only slightly above the long-term

(1919*60) average rate of 4.3 percent. Moreover, the postwar rate of production growth was only slightly higher than the rate of increase in output

per production worker man-hour. Over the entire 1919-60 period, however,

production expanded at a rate almost twice that of output per man-hour.

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The industry*s output growth rate was slightly higher than the

growth rate of total industrial output. The postwar rate of increase— 4*5

percent-compares with the annual growth rate of 4.1 percent shown by the

Federal Reserve Board index of total industrial output. Long-term rates for

the 1919-60 period show a similar relationship, 4.3 percent a year compared

with 4.1 percent for industrial production.

Growth of output over the post-World War II period, however, was

uneven. In the 1949 recession output declined, then recovered sharply; in

1952, during the Korean war, output again declined. Following a 3-year period

of substantial growth ending in 1956, production declined in 1957. The recovery in 1959 was sharp, with output exceeding the 1956 peak. Preliminary

data indicate that expansion continued in 1960. (See table A-3.)

Output varied considerably, by type of paper and board. Between

1947 and 1960, the output of special food board, such as used in frozen food

packages, containers, and cups, more than tripled, and newsprint and sanitary

and tissue papers more than doubled. (See table 2.)

Table 2. Production of paper and board, and percent increases by grade,

1947 and 1960

Grade

Production 1/

(in thousands

of tons)

Percent

increase

1947 1960

Newsprint ................ .......... .

Printing p a p e r ..... ................. ......

Fine papers .............. .......

Coarse and special industrial papers .......

Sanitary and tissue papers ................ .

Container b o a r d ..........

Bending board (except special food board) ..

Nonbending and other paperboard ............

Construction paper .............. .........

Construction board .............. ...........

833

3,029

1,172

3,293

1,089

4,944

2,298

460

1,635

1,289

1,072

2,004

4,668

1,771

4,753

2,217

8,649

2,905

1,478

2,804

1,422

1,789

140.6

54.1

51.1

44.3

103.6

74.9

26.4

221.3

71.5

10.3

66.9

1/ Unweighted aggregate tonnage. An output index for this industry based on these data would differ from the output indexes shown in tables

A-3 and A-4 which include pulp, and are based on weighted averages for

24 product classes.

Source: U.S. Department of Commerce, Bureau of the Census.

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Postwar gains in production, however, did not keep pace with expansion in capacity. Between 1957 and 1960, rate of capacity utilization in

paper and board mills (according to American Paper and Pulp Association data)

averaged only 88 percent; well below the rate of nearly 100 percent preferred

by the industry, and the actual operating rates of over 96 percent during

1955 and 1956. (See chart 2 and table A-2.) A high rate of capacity utilization is considered desirable by the industry because of substantial fixed

costs.

Chart 2. Production and Capacity of Paper and Board and

Percent of Capacity Utilized, 1947-60

THOUSANDS OF TONS

Source: Capacity, American Paper and Pulp Association Production,

U.S. Department of Commerce, Bureau of the Census.

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Employment, Hours, and Earning*

Although output in the pulp and paper industry increased by 73 per*

cent between 1947 and 1960, production worker employment rose by only 8 percent. Nonproduction workers (i.e., administrative, professional, technical,

and clerical) increased by 93 percent so that the total number of employees

rose by 18 percent (from 234,000 in 1947 to 275,300 in 1960). In 1960, nonproduction workers constituted 19 percent of all employees; in 1947, they

comprised only 12 percent. (See chart 3 and table A-5.) The employment increase in the pulp and paper industry was significantly greater than the rise

in employment in all manufacturing industries between 1947 and 1960.

Chart 3. Employment in the Pulp, Paper, and Board Industry, 1947-60

THOUSANDS OF WORKERS

Following a peak in 1956, the number of all employees declined by

2,700. The decline in production worker employment between 1956 and 1960

amounted to 7,500, while nonproduction workers Increased 4,800, from 47,600

to 52,400.

The decline in production worker employment reflected the slow rate

of increase in output relative to that of output per man-hour. Output per

production worker man-hour increased at a rate of 3.5 percent a year (compounded) while total output increased somewhat less (2.7 percent). Production worker employment declined by 0.8 percent per year.

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Average weekly hours for production workers in the industry varied

only slightly between 1947 and 1960, declining from 44*2 to 43*4 hours* (See

table A-6.) Compared with average weekly hours in manufacturing (39*7 in

1960), the average in the pulp and paper industry is relatively high* Production workers in pulp and paper averaged 5*1 hours overtime per week in 1960,

compared with 2.4 overtime hours for production workers in manufacturing*

Compared with manufacturing earnings, the average hourly earnings

of production workers in pulp and paper increased at a greater rate between

1947 and I960* Production workers in both industries averaged about $1*22

per hour in 1947, but by 1960, the average hourly rate in pulp and paper had

reached $2.42, compared with $2.26 in manufacturing. Average weekly earnings

of production workers in pulp and paper were also well above manufacturing in

1960 ($105*03 compared to $89*72) because of the longer workweek and the

higher hourly rate* These data exclude gains in certain supplementary benefits such as pensions and related benefits* (See table A-6«)

Shifts in Location of Jobs

One of the most significant employment developments (based on Census

data) between 1947 and 1958 was the shift in the regional distribution of

jobs. The Northeast and North Central regions lost in proportion of workers)

total employment in the Northeast declined, and the increase in employment in

the North Central region was below the United States average* In contrast,

the South and West experienced sharp gains in employment; both regions had

approximately one-third more employees in 1958 than they had in 1947* (See

chart 4 and table A-7.) The South in 1958 was the dominant region, with more

than one-third of the total employment In the industry*

Chart 4. Percent Changes in the Distribution of Employees and Establishments

Pulp, Paper, and Board Industry, 1947 to 58

PERCENT United States and Census Region PERCENT

CHANGE CHANGE

'Excludes pulp mills because data are not strictly comparable^

Source: U.S. Department of Commerce, Bureau of the Census.

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The expansion of jobs in the South and West accompanied a significant increase in the number of paper and board establishments in these regions.

Although the total number of establishments grew by only 12 percent between

1947 and 1958. the number in the South increased by 22 percent, and the number in the West doubled. In the North Central region, however, the net increase was slightly below the industry average, and in the Northeast, the

number of plants declined by 1 percent. (See chart 4 and table A-8.)

Shifts in the location of plants relative to available raw materials

have long characterized the industry. Until wood was substituted for rags

and straw in the manufacture of pulp, the industry was concentrated in the

populous States of New York and Pennsylvania. After the 1880's the industry

shifted toward its new sources of raw materials, first, near the forests of

the Northeast and then into the North Central States. Rapid expansion into

the West began early in the 20th century, and into the South, in the middle

twenties, with the discovery of new processes which made it economically

feasible to manufacture pulp from southern pine, hemlock, Douglas fir, and

other species found in these regions.

Labor Turnover

The specific impact of technological change on labor turnover trends

cannot be readily isolated from various economic factors affecting the labor

market. Changes in hiring and layoff rates reflect the expansion and contraction of business activity and the opening and closing of plants because

of competitive or other conditions as well as the effect of laborsaving innovations. It should be recognized that workers whose jobs are abolished because of technological change possibly may not be laid off until periods of

recession. Moreover, workers laid off during business declines may not be

rehired during recovery because of laborsaving changes introduced in the

interim. Finally, when opportunities are lacking generally, fewer workers

quit their jobs and plants which have installed laborsaving machinery may not

be able to reduce employment by means of attrition to the extent possible

when jobs are generally abundant.

The changing demand for labor in the pulp and paper industry is

reflected in the sharp reduction in hiring rates and the rise in layoffs since

1949. The total accession rate was reduced from an average of 23 employees

per 1,000 in 1949-51, to 16 per 1,000 in 1958-60. The number of new hires

declined substantially. The layoff rate rose from an average of 6 employees

per 1,000 in 1949-51, to 7 employees per 1,000 in 1958-60. The quit rate

declined from an average of 13 employees per 1,000 to 7 per 1,000 during the

same period. (See table A-9.)

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Trends in Technology and Research

Technological developments in the 1950's marked the beginning of

automation as well as the continuation of earlier developments. Along with

changes in technology came a substantial increase in expenditures for research. According to one expert, "It is no exaggeration to state that in the

past 5 years we have progressed as far as in the previous 20 years. . . ." 6/

Relatively large postwar expenditures for new plant and equipment

provided mills with opportunities to install these latest improvements in

papermaking technology. Between 1947 and 1960, close to $5 billion was spent

for new machinery and equipment and for new structures and additions to plant.

Consequently, between 1947 and 1960, paper and paperboard capacity increased

by 76 percent. (See tables A-l and A-2.)

Looking to the future, one expert concluded: "The paper industry

is in the midst of a period of growth and evolution from which it may emerge

quite changed from its traditional character." 7/ Technological changes in

this era of automation are described under four major headings: trend toward

continuous automatic production; development of improved measurement, inspection, and control devices; development of new sources of raw materials;

and growth of research and development.

Trend Toward Continuous Automatic Production

A significant postwar trend has been the linking together of separate

production steps and the elimination of labor involved in direct production.

This trend is particularly important in wood handling, pulping, and shipping

operations*

Materials Handling. One of the most important steps toward continuous automatic production involves the mechanization of materials handling. These

changes encompass improving and expanding conveyor systems, merging separate

conveyor lines into unified systems, and centralizing control units so that

materials move from step to step with a minimum of labor.

Woodyard operations offer particularly challenging materials handling problems. Unloading pulpwood in the woodyard from railroad cars, trucks,

or barges, and transporting it to storage prior to barking and chipping,

6/ Lee Eberhardt. "Economic Impact of New Processes on the Pulp

and Paper Industry," The Paper Industry (Fritz Publications, Inc., Chicago),

March 1958, p. 982.

TJ McGraw-Hill Encyclopedia of Science and Technology, Vol. 9

(New York, McGraw-Hill Book Co., 1960), p. 541.

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require extensive manual effort* Some pulpmills have developed unique sidedumping rail cars and other mobile devices which either rake or shove pulpwood

off cars and into conveyors or flumes* These changes greatly reduce the need

for manual labor.

A few mills have installed automatic paper roll handling systems in

their shipping departments. These systems utilize conveyors to transport

paper rolls automatically through banding machines and scales, and then to

loading platforms or storage areas with a minimum of handling. The worker

monitors these shipping operations from a central control panel, and memory

devices and electric eye mechanisms are used to actuate an operation at a

specific location.

Continuous Pulping. Another significant development toward continuous automatic production is the growing use of continuous pulping systems. These

systems differ from conventional batch pulping methods because of the continuous flow of the input of wood chips and of the output of pulp.

Automatic controls, involving instruments to measure and control

temperature and pressure in the pulping process, are an important feature of

these systems, and they eliminate the need for manual starting and stopping

of each batch. 8/

Continuous pulping offers important economies in capital through a

reduction in physical plant required per ton of pulp produced, laborsavings

resulting from a reduction in manual operations, and steam savings owing to

a reduction in the liquor (cooking agent) to wood ratio.

Installations of continuous pulping systems increased significantly

after 1945. Three continuous systems were in operation in North America in

1945; by 1958, 50 were in use (principally in the United States). Continuous

systems, however, still comprise only a small proportion of the more than

1,000 pulping systems in operation. 9/

8/ James P. Casey. Pulp and Paper: Vol. 1, Pulping and Bleaching.

2d ed. (New York, Interscience Publishers, Inc., 19<)0), p. i04.

9/ John 0. McCutcheon. "Continuous Pulping," Paper Mill News

(L. D. Post, Inc., Philadelphia), March 28, 1960, pp. 46, 48.

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Improved Measurement, Inspection, and Control

An important aspect of automation is the introduction of instrument

tation and automatic control. Paper mills have adapted new developments arising out of advances in electronics to their own special production technology.

Instrumentation. Since manufacturing pulp and paper involves processing with

large quantities of steam, water, and chemicals, instruments for measuring

and regulating temperature, pressure, liquid flow rates, levels, and consistencies, are used extensively. The increasing emphasis on quality control

has alerted management to the importance of instrumentation which offers more

accurate and reliable control of these variables, than is possible with human

operators.

One example of an important advance in instrument technology is the

magnetic flowmeter. First Introduced in 1955, this instrument is being widely

adopted to measure and control the flow of pulp through refining equipment.

The magnetic flowmeter makes use of a magnetic field and an electrical current

to measure continuously and accurately the velocity of the pulp flowing through

a pipe, regardless of variations in pulp consistency, temperature, and pressure.

No obstructions interfere with the flow of pulp. An important advantage of

magnetic flowmeters over other measuring instruments is their low maintenance

requirements. 10/

Another important development is the installation of controls for

several processes at central control stations. These stations are generally

clean, air-conditioned rooms where an operator and an assistant read, monitor,

and log instruments for an entire operation. A key advantage is that all

motors and pumps can be started, regulated, and stopped, quickly and efficiently. Warning systems which utilize light and sound signals enable an operator to pinpoint quickly an equipment malfunction. When a breakdown in one

unit occurs, the interlocking control systems automatically close down other

units to prevent further damage. In some systems, adjustments are made automatically in other parts of the system to ensure a continuous flow rate. 11/

Graphic control panels are being used increasingly. One expert defines this innovation as: "... a central control panel, on which appear

devices for maintaining control and obtaining records, in addition to a process

flow diagram illustrating the most important process equipment; all panel instruments being located on the flow diagram relative to their actual point of

10/ R. F. Barber. "Process Instrumentation for Continuous Refining,"

Paper Trade Journal (Lockwood Trade Journal Co., Inc., New York, October 31,

1960), p. 24.

11/ M. C. Boyd. "Automation for Insulating Board at Barrett*s New

Sunbury MiTT," Taylor Technology (Taylor Instrument Companies, Rochester 1,

New York, Fall Issue, 1957), pp. 16-17.

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control in the process.M 12/ An important element of these systems is that

an operator can readily scan the panel and make necessary adjustments with

minimum delay.

Computers. Paper companies are also exploring the feasibility of applying

computer technology to their production operations. For example, one company

is testing a computerised process control system on a large paperboard machine.

The system provides operating personnel with detailed data on such items as

stock flow, composition, and temperature. With a computer, it is possible to

analyze data that could not heretofore be collected and to Improve the opera t o r s control of the entire process. The company expects to realize savings

of $600,000 annually by reducing downtime and offgrade time by 75 percent.

Besides expanding the system on the paperboard machine, the company plans to

apply computer control systems to pulp digesters, caustic and bleach plants,

and coating operations. In the opinion of some experts, however, widespread

application of computer technology to papermaking depends first on the adoption

of more sensitive measuring instruments. 13/

Radioisotope Gages. An important peacetime application of atomic energy in

the paper industry is the growing use of radioisotope (beta) gages on paper

machines. These gages are used primarily to measure and control the basis

weight (weight per unit area) of paper and paperboard, and thickness of coated,

laminated, and Impregnated paper products. They consist of radioisotopes

which emit beta rays and electronic detection devices which measure the amount

uf beta rays absorbed by the paper. Changes in paper density or thickness are

reflected by variations in gage readings. Since measurement is continuous and

the instrument does not touch the product, this equipment is particularly useful in paper manufacture. (See Fig. 1.)

The use of radioisotopes has yielded substantial operating economies.

According to a study by the National Industrial Conference Board 14/ for the

Atomic Energy Commission, 99 companies in the paper industry were using beta

12/ J. Newell Stephenson, editor. Pulp & Paper Manufacture: Vol. 4 ,

Auxiliary Paper Mill Equipment (New York, McGraw-Hill Book Co.,1955), p. 165.

13/ "Computers Enter Paper Industry," Chemical and Engineering News

(American Chemical Society, Washington, November 20, 1961), pp. 58 and 60,

S. S. Livers. "Taking the Art Out of Papermaking,* Control Engineering

(McGraw-Hill Book Co., New York, December 1961), pp. 20-21.

14/ Although the NICB study refers to the paper and allied products

industry, operations on which beta gages are used were in the pulp and papermaking branches of the Industry.

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gages in 1957-58. Of these, 93 companies invested a total of $369,000 in

radioisotope equipment and facilities during a 12-month period, and realized

an estimated net saving of $2,818,000, or nearly $8 for every $1 invested. 15/

Of the $2.8 million saved, 80 percent resulted from the use of

radioisotope thickness gages. A manufacturer of coated papers, for example,

achieved net savings of $183,000 in 12 months from a $10,000 investment in

radioisotope gages to monitor and control coating thickness. Included in

these savings were the annual wages of a paper tester for each of three shifts,

which amounted to $18,400, and scrap savings of $175,000 attributable to a

reduction in off-specification production. 16/

An important though intangible benefit, according to some paper producers, was the improvement in customer relations which resulted from closer

quality control and improved quality products. The prospect of substantial

savings, with increasing emphasis on quality control, is believed to be leading to wider adoption of radioisotope gages.

Automatic beta gage measuring the coating applied to the paper base; speed is approximately 1,000 feet per

minute.

15/ John J. McMahon and Arnold Berman. Radioisotopes in Industry

(New York, National Industrial Conference Board, Inc., 1959), p. 77.

1J6/ Ibid, pp. 77, 80

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Industrial Television* The use of closed circuit television for inspection

purposes is another postwar application of electronics. A basic closed circuit television system consists of a camera, a receiver, and a transmission

link, such as a coaxial cable or a microwave linkage. These units are said

to be reliable and easy to operate and maintain. 17/

Operating experience, so far limited to a few installations, suggests

potentialities for cost savings through more efficient utilization of manpower

and more efficient inspection methods. A pulp washing installation, for example, currently uses a television camera to permit a worker to inspect pulp

washing operations from a distance. This continuous Inspection system is used

to warn an attendant of improper pulp formation or vat overflow so that costly

production delays can be prevented.

Although currently used on a limited basis, television units are

expected to become more widely adopted as new applications become feasible.

Experts see potential uses, for example, in controlling and inspecting conveyor operations in the woodyard and in the shipping department. The use of

television to read Instruments in certain recovery operations is expected to

reduce accidents.

Development of New Sources of Raw Materials

The search for low-cost raw materials and the adaptation of manufacturing processes to them have long been dominant features of technological

developments in the paper industry. The direction of current trends in pulping, according to one expert, " . . . is to use whatever species are available

and to adapt the cooking process to those species. The development of new

pulping processes has been a necessary accompaniment of the broadening in the

number of wood species used." 18/

Semichemical Pulping. One of the most important postwar trends is the increased

use of semichemical pulping systems which can utilize low cost Southern hardwoods. Because of the decline in softwood reserves, this new source of raw

material has been particularly valuable. Like other changes in raw material

utilization, this has important implications for location of plants and jobs.

17/ G. I. Burner. The Use of Closed Circuit Television in the Paper

and Pulp Industry (Conference paper presented at A.I.E.E. Paper and Pulp Conference, Gainsvllle, Fla., March 8-9, 1956). 18 pp.

18/ James P. Casey. Op. cit., p. 102

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This process involves a relatively brief chemical treatment of chips,

followed by mechanical separation of the fibers. Semichemical systems permit

higher yields from pulp wood than can be achieved in full chemical systems.

Semichemical pulp combines well with regular chemical and groundwood pulps,

resulting in improved forming characteristics. 19/

First developed in 1925 by the Forest Products Laboratory, semichemical pulping was adopted slowly until the end of World War II. Even in

1952, only 22 semichemical pulping mills were in use. By 1961, however, 48

such mills were in operation. 20/ Although semichemical pulp comprised only

8 percent of total pulp output in 1960, semichemical grades are expected to

increase in importance. In 1950, semichemical pulp comprised 5 percent of

total output. 21/ Some experts predict that in total tonnage produced, semichemical pulps will eventually rank second in importance to regular kraft

sulphate pulp. 22/

Use of Wood Residue Pulping. A significant postwar development in Pacific

Coast pulpmills is the growing use of sawmill residue such as slabs and edgings as raw material in pulping. Wood chips from sawmill wastes now account

for about 40 percent of all pulpwood consumed in these mills. Some new mills

report using purchased wood chips almost exclusively, thereby achieving labor

and capital savings in woodyard and woodroom operations. Although experts

foresee further expansion in use of sawmill residue, they predict that even

faster growth would occur if an economical, portable chipper and barker could

be developed capable of processing western woods. This would enable sawmills

to convert waste to chips economically and thereby increase the supply of

chips for sale to pulp mills. Moreover, this equipment could efficiently

process logging wastes such as limbs and small trees which are customarily

left in the forests. 23/

19/ George S. Witham. Op. cit., pp. 157-158.

20/ Lockwood*8 Directory of Faper and Allied Trades (Lockwood Trade

Journal Co., Inc. , New York:), 1952 and 1961 eds.

21/ Pulp, Paper and Board. (U.S. Department of Commerce, Business

and Defense Services Administration. Annual Review issues, March 1961 and

March 1960).

22/ George S. Witham. Op. cit., p. 185.

23/ John A. Guthrie and George R. Armstrong. "The Pulp and Paper

Industry," Western Forest Industry: An Economic Outlook. Published for Resources for the Future, Inc. (Baltimore, Johns Hopkins Press, 1961),

pp. 121-123.

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Future Advances. Research may introduce some departures from the processes

followed over the past 100 years. For example, some experts see the need for

research in breeding trees free of bark and impurities, so that many operations and jobs in the pulp mill would be eliminated. 24/

A new development under study, the "bush mill pulping concept" could

have far-reaching implications for the location of the industry and its employment. This may involve locating pulp mills near the source of wood supply,

partially pulping the wood and shipping semiconverted pulp to a central mill

for further processing. If feasible, this method would yield economies in

transportation. In addition, some experts see the possibility of using the

bush mill concept in connection with a small, semiportable paper machine,

recently developed, which could be located at the market rather than at the

raw material source. 23/

Research and New Products

A key factor in postwar technological change is the increased expenditures for research and development activities to broaden raw materials

utilisation, improve production processes, and to develop new products. According to a National Science Foundation survey, the paper and allied products

industry in 1960 spent $66 million on research and development. This amount

was 50 percent greater than was spent in 1956. 26/ A portion of this increase resulted from increased salaries and other costs, as well as from more

workers engaged in R&D activities. 27/

24/ "Searching the Sixties . . . for Future Growth," Paper Mill

News, February 29, 1960, p. 31.

25/ Lee Eberhardt. Op. cit., pp. 983 and 996-997.

26/ Funds for Performance of Research and Development in American

Industry, 1960 (Preliminary Report). National Science Foundation, Reviews of

Data on Research and Development (Washington, U.S. Government Printing Office,

1961), pp. 3 and 5.

27/ The data on research and development activities presented in

this report are for the paper and allied products industry (SIC 26), and consequently includes plants engaged in converting activities. Data on research

and development expenditures in the pulp, paper, and paperboard segment are

not shown separately.

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About 98 percent of these expenditures were for applied research.

For example, one field of applied research is the development of new uses for

lignin, now a waste substance from the pulping process. However, $1 million

was spent in 1960 for basic research. One large diversified paper company,

for example, reports carrying on a continuing program in fundamental research

on the chemical and physical structure of cellulose and lignin molecules.

The objective is to gain an understanding of materials worked with and to provide support for future research.

The development of new paper products and processes is one of the

goals of research and development. A recent McGraw-Hill report, for example,

estimates that 8 percent of the sales of the paper and pulp industry in 1963

will consist of products that were not on the market in 1959. 28/

Stretchable kraft paper is an outstanding example of a product

recently introduced. Some of its useful properties are its great toughness,

flexibility, good printability, and excellent folding qualities. The use of

stretchable paper has thus far been primarily in the field of packaging, such

as multiwall and grocery checkout bags.

One important trend is the development of new products by combining

paper with products from other industries, especially plastics and metals, to

produce end products with desirable features of both materials. For example,

a low cost paper that conducts electricity has been manufactured by combining

aluminum and wood fibers, and is reported well suited for many industrial

electronics applications. Another firm is marketing inexpensive paper baking

dishes coated with polyethylene plastic to withstand high oven temperatures. 29/

New types of plastic coated paper for cartons is being sold with unique properties to protect contents from damage from moisture, grease, etc. According to

some experts, an even wider range of new products may be feasible if the industry can develop a technique for blending plastics with pulp prior to reaching the paper machine. 30/

28/ The American Economy— Prospects for Growth Through 1975 (New

York, McGraw-Hill Book CoT, 1961>,p. 13.

29/ David G. Smith. "Promoting Paper . . .," the Wall Street Journal, Dec. 17 1961, p. 1.

30/ Charles W. Heckroth. "Significant for the Sixties

Paper Mill News, Dec. 26, 1960, pp. 29-30.

• • • t

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An important research goal in this industry is the development of

low cost paper products as substitutes for textiles. One large firm, for example, has developed a bonded web, nonwoven fabric from cellulose, with certain

characteristics of cloth, which can be made water repellant and fire resistant.

Relatively inexpensive and easily disposable, industry experts claim that it

is suitable for many applications in medical care. Examples of similar paper

products now in use include shop aprons and towels for use in industrial plants,

and paper pillow cases, operating table covers, and slippers for hospital use.

Looking further ahead, paper firms are undertaking research (in one

case with a textile concern) to develop a variety of fabric substitutes. For

example, a disposable paper fabric is being developed, which can be produced

on conventional papermaking machines, using as a raw material cellulose wadding

(a wood pulp product) and synthetic fibers. This material is reported to cost

a fifth of the cost of conventional fabrics. Several firms report plans to

market low cost paper clothing manufactured from materials of this type, which

can be discarded when soiled. One firm is experimenting with a paper fabric

that can even withstand laundering. 31/

31/ David G. Smith. Op. cit., pp. 1 and 8

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Outlook for the 1960's

The outlook for changes In production, output per man-hour, and

employment over the next few years is presented in the following sections on

the basis of a review of trends in the industry since 1947 and a weighing of

some factors that would tend to alter these trends in the immediate future.

Since the industry's growth is affected by economywide factors, significant

departures from the overall economic pattern of the 1950's will necessarily

influence the outlook for the Industry.

Output per production worker man-hour is expected to continue to

increase at an annual rate above the long-term average of 2.4 percent a year.

In view of the expected rise in production and changes in technology, the rate

of increase may be roughly in line with post-Uorld War II changes in output

per man-hour. The effect of newly constructed plants on higher levels of output per man-hour will probably be smaller in the 1960's than during the 1950's

when the industry substantially enlarged capacity to meet expanding demand and

to overcome obsolescence accumulated during World War II.

Paper plants are placing more emphasis on modernization of existing

facilities than on the building of new plant capacity. 32/ Greater mechanization of materials handling in woodroom and finishing operations, improved

instrumentation, and the introduction of continuous instead of batch processing will probably be important sources of laborsavings. Continued efforts by

management and labor to improve efficiency and reduce waste should also contribute to greater productivity. Since technological improvements depend on

management's investment decisions, trends in sales, costs, interest rates,

taxes, depreciation allowances, and profits necessarily have an important

bearing on the outlook for productivity increases.

Output of pulp and paper is expected to continue to increase, but

at a slower rate than the average 4.5 percent annual rise during the 1947-60

period. According.to 1957 estimates by the U.S. Department of Commerce (based

largely on historic relationships to indicators of the economy*s growth), by

1965, net demand for paper and board (unweighted tonnage) may increase by

about 40 percent over 1956 or at an average rate (compounded) of 3.8 percent

per year* 33/ The increase in the output of pulp would be sometriiat higher.

32/ The U.S. Industrial Outlook for 1961--91 Selected Industries.

U.S. Department of Commerce, Business and Defense Services Administration.

(Washington, U.S. Government Printing Office, 1961), p. 145, Business Plans

for New Plants and Equipment— 1961/1964. (New York, McGraw-Hill Book Co.,

1961.) p. 7.

33/ Pulp, Paper and Board Supply-Demand. U.S. House of Representatives, Committee on Interstate and Foreign Commerce, 85th Cong., 1st sess.

(Washington, U.S. Government Printing Office, 1957), p. 20. David L. Luke.

"Pulp and Paper," American Enterprise: The Next Ten Years, Martin R.

Gainsbrugh, editor” (New York, The Macmillan Co., 196l), p. 217.

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The outlook for demand for special food board, sanitary and tissue

papers, and building board is considered especially favorable. Continued

growth of population and gross national product and more intensive marketing

and production of new paper products contribute to increased demand. Improvements in plastics and other competitive materials, on the other hand, may

limit increases in sales.

The prospects for a significant increase in the level of production

worker employment over the next few years (implied by the changes discussed

above) appear to be limited. If output per production worker man-hour increases at the same rate as during the 1947-60 period, the estimated increase

in output by 1965 could be achieved with about the same number of production

workers as of I960. This prospect is based on a continuation of the average

weekly hours of about 43, which includes on the average about 5 hours overtime.

Widespread modernization, higher rates of capacity utilization, and

successful cost reduction programs may increase output per production worker

man-hour at a faster rate than during the 1950's. In that event, productionworker employment would decline unless production increases at a faster rate

than expected. A continuation of the 1947-60 rate of increase in production,

on the other hand, could increase production worker employment.

The outlook for certain occupations within the industry is more

favorable than for others. Installation and maintenance of complex equipment

as a result of changing technology and accelerated research and development

activities will require more skilled workers and additional engineers and

scientists, especially those with specialized training in paper technology.

Specific skilled occupations expected to show above average growth include

electricians, machinery repairmen, carpenters, pipefitters, and millwrights.

During the decade of the 1960's, administrative and clerical occupations may

increase faster than production jobs. The demand for semiskilled and unskilled workers, however, will probably decline significantly as more materials

handling, continuous processing, and other laborsaving equipment is introduced.

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Part II. Selected Case Studies

Part II of this bulletin presents case studies of the implications

of the introduction of technological changes at three pulp and paper plants.

The studies cover the background, main objectives, and the impact of specific technological changes on labor requirements, displacement and transfer

of workers, occupational requirements, working conditions, and industrial

relations.

The plants were selected after review of technical literature describing specific installations of new technology in the pulp and paper industry. Each of the three plants was highly advanced in some particular

phase of paper technology: two had made important advances in materials

handling; and one had introduced continuous processing. Only plants which

replaced preexisting systems were selected so that the results of changes

could be traced conveniently. The three plants are located in different

geographic areas and vary in size.

The data which formed the basis for the detailed case studies were

collected by BLS representatives during plant visits. This involved interviewing both labor and management officials who had a direct knowledge of the

change, and extracting pertinent data from plant records.

In assessing the findings, it is essential to keep in mind certain

qualifications of the case study approach. First, the plants selected are

not necessarily representative or typical of all plants in the industry or

of all plants making changes. The case studies are illustrative only and do

not imply that the experiences described are necessarily widespread.

Also, the study was not designed to cover the impact of technological advances at competitive plants which could not or did not make the

changes and therefore may have been adversely affected. The data for the

industry as a whole discussed in part I reflect the net effects of such

changes.

Finally, the case studies cover primarily the objective, formal

aspects of the changes. No attempt was made to survey the subjective attitudes of workers and managers. However, managers, supervisors, foremen, and

union officials were interviewed concerning various aspects of the changes.

Each case study begins with a brief description of the technological

change, and then discusses such topics as changes in capital requirements,

output per man-hour, extent of displacement and reassignment, occupational

changes, training and retraining, safety, implications for older workers,

labor-management relations, and setting of wage rates.

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Case Study of Mechanization of Materials Handling

Summary

This study concerns the problems that arose when a relatively old

mill with a large proportion of older workers mechanized materials handling

operations in its woodroom. The change provided additional wood processing

capacity needed for future expansions in mill output. Many manual tasks

were eliminated and a larger amount of wood was processed with fewer workers.

Since production was increased only moderately during the change, extensive

planning was undertaken so that layoffs could be averted. This involved use

of normal attrition supplemented by encouragement of retirement of eligible

workers. There was considerable reassignment of workers to jobs elsewhere

within the mill. The new equipment required fewer laborers and more machine

operators and tenders, but the overall grade level remained relatively unchanged. The use of electronic devices to stop conveyors and machinery was

a factor in reducing the hazard of serious accidents. Establishing wage

rates for new jobs provided management with an opportunity to devise a system

atic method of describing jobs. Extensive negotiations between management

and unions took place before the final wage rates were established.

Description of Plant

Plant A, a relatively large pulp and paper mill, employs about

1,500 workers and is a major employer in its community. Approximately 80

percent of its annual production is enamel printing paper for use mainly

in magazines. The remaining output consists of a variety of paperboard

products such as shipping containers and folding cartons. Annual production

is approximately 130,000 tons, and annual sales exceed $20 million.

The parent company, of which plant A is a major division, has been

one of the pioneers in papermaking technology. Since World War II, the company has spent more than $62 million for new facilities and plant improvement

A new research and development center has been built to coordinate research

and development with engineering, marketing, and manufacturing activities.

Plant A's new woodroom, its most important postwar laborsaving

innovation, is considered one of the most completely integrated and highly

mechanized wood processing installations in the industry. According to some

industry experts, it is "the forerunner of woodrooms of the future."

The plant also installed beta gages and automatic controls on paper

machines, conveyors, control instruments, improved pulp refining equipment,

and new equipment to prepare paper coating materials. Specific projects

planned for the future include the development of new paper coating techniques, and more efficient methods of recovering chemicals from manufacturing

operations.

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Converting logs into chips is the first step of papexmaking in this

plant. The basic process consists of sawing pulpwood logs to proper length,

removing the bark, and converting them into chips. In the old woodroom, this

process required an extensive series of manual operations. Although sawing,

barking, and chipping operations were done on special purpose machinery, a

considerable number of men stationed adjacent to the conveyors were still required to break up log jams, manually remove inadequately barked logs from

conveyors, and perform numerous other heavy tasks by hand.

Several important limitations of the old system motivated management to plan for a new woodroom. The old system had too little capacity to

sustain additional output; most of the equipment was in need of replacement,

and labor costs were relatively high. A planning group consisting of the

plant superintendent, a foreman, and several company engineers drew up specifications for a new woodroom.

Company A's new $1.8 million woodroom began operations in August

1955. Company construction crews under the supervision of company civil

engineers installed the equipment. Six different companies supplied equipment, conveyors, motors, control units, and pumps.

Major Technological Changes

More machinery and expanded conveyor systems sharply reduced the

number of manual operations. Capacity was increased by nearly 60 percent.

The new system is flexible and can process a variety of softwoods and hardwoods. Major technological innovations in the new woodroom are described in

the following paragraphs.

Faster Transportation System. The efficiency of transporting logs from storage to the woodroom entrance was substantially improved by a new pumping system which induces a faster current in the wood pond. The number of employees

who formerly propelled logs by using long spiked poles has been greatly

reduced.

More Extensive Conveyor!zation. An extensive integrated conveyor system

which transports logs through a sequence of processing operations also helped

to increase efficiency. This conveyor system consists of a main sorting belt

and several auxiliary conveyors. The system permits the return of improperly

barked logs to the barkers, diversion of groundwood logs to special saws, and

routing of logs to one of two chippers. Since log jams along the new conveyor system occur less frequently than before, important laborsavings were

derived from a substantial cutback in standby inspection personnel.

More Powerful Equipment. More powerful wood processing equipment is used.

The barking drums now remove a greater percentage of the total bark and hence

eliminate manual debarking operations. Reduction in employment also resulted

from substituting mechanical for manual methods of loading and positioning

logs in the splitters and chippers.

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Increased Equipment Capacity. An important change was the enlargement of the

capacity of the chippers, a key step in the woodroom operations. The chippers

in the new woodroom can accommodate 8-foot logs, whereas the older equipment

could process only logs less than 2 feet long. The total combined horsepower

of the two chippers in the old system was 650, while the main chipper in the

new system alone is rated over 1,000 hp. The amount of sawing required was

reduced with significant decreases in material and labor.

Centralized Control Systems. An outstanding feature of the new woodroom is

the centralized control system. Transporting logs efficiently through a sequence of processing operations by integrated conveyor systems requires more

coordinated control of operations. Regulation of all operations is now centered in two locations. Pushbuttons on these control units supplant less

efficient and less dependable manual control methods at a number of scattered

locations.

Some overall measures of mechanization in the woodroom are shown in

table 3. Total horsepower in the woodroom was increased nearly threefold.

Because of reduction in employment, horsepower per worker was increased sevenfold.

Table 3. Woodroom of plant A: Horsepower installed and daily capacity,

before and after modernization

Item

Before

modernization

After

modernization

Percent

change

Total horsepower installed ......... 1.130 3,160 179.6

Horsepower per worker ........ ......... . 8.9 65.8 639.3

Daily (24 hour) capacity

(cords) ................ .............. 450 713 58.4

Horsepower per cord of daily

capacity ....... ..................... . 2.5 4.4 76.0

Source: Derived from data from plant records

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Effect on Output Per Man-Hour

Mechanization resulted in a sharp increase in output per man-hour

in the woodroom. (See t'able 4.) Cords processed per man-hour increased more

than 200 percent. Although actual volume of cords processed was only 14 percent higher, man-hours dropped sharply.

Table 4. Woodroom of plant A: Output per man-hour, and unit man-hour

requirements, before and after modernization

Item

Year

be fore

modernization

Year

after

modernization

Percent

change

Cords processed (annual) ............. 119,853 136,754 14.1

Man-hours (annual) ................... 264,160 99,840 -62.2

Cords per man-hour (average)..... . .454 1.370 201.8

Man-hours per cord (average) ........ 2.20 .73 -66.8

Source: Derived from data from plant records.

These substantial output per man-hour gains, however, did not occur

immediately. About 1 year was required to overcome operating difficulties,

because of the breakdown of several conveyors.

Effect on Capital Requirements

The technical changes involved a substantial increase in the volume

of capital installed per worker. In the new woodroom, capital investment per

worker was about $37,000, compared with about $8,500 (estimated replacement

cost) in the old woodroom, an increase of 336 percent. Total value of plant

and equipment was 65 percent higher, but the number of workers was reduced

sharply. (See table 5.) In terms of capacity, the ratio of capital per unit

of capacity was only 4 percent greater than in the old woodroom.

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Table 5. Woodroom of Plant As Value of plant and equipment*

before and after modernization

Item Before

modernization

After

modernization

Percent

change

Value of plant and equipment I f $1,077,504 $1,774,887 2/ 64.7

Value of plant and equipment

per worker 8*484 36,977 335.8

Value of plant and equipment

per 100 cords of capacity 239,445 248,932 4.0

1/ Estimated replacement cost at time of change.

2/ Affected by price changes as well as by amount of plant and

equipment.

Sources Derived from data from plant records.

Effect on Costs

Tangible savings in the cost of processing a cord of pulpvood

through the woodroom were achieved. Although hourly wage rates rose by more

than 20 percent in a 5-year period because of percentage wage increases*

gross costs per cord remained virtually unchanged. The net cost per cord

actually declined by 6 percent vften the value of bark recoverable for use

as fuel is deducted from gross costs.

Annual savings in payroll alone amounted to nearly $300*000 the

year following the change* owing to the elimination of 79 jobs. More than

$70*000 was also saved from the increased value of bark recovered for use

as fuel. Based on these savings* the $1.8 million cost of the new woodroom would be amortized in less than 5 years.

Effect on Plantwide Output Per Man-Hour

Since employment in woodhandling conprised only about 13 percent

of total plant employment* gains in output per man-hour for the plant as a

whole were substantially less. Output per man-hour for the plant rose by

about 15 percent. Total output increased by 19 percent* while total manhours were up by 3 percent.

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Displacement and Reassignment

The installation of new laborsaving equipment resulted in a sharp

reduction in the number of jobs required in the woodroom, and in reassignment of a substantial number of workers directly affected to other jobs

within the woodroom and throughout the mill.

Reduction of Jobs and Reassignment. The number of jobs required in the

woodroom was reduced from 127 to 48, or 62 percent. (See table 6.) Of the

127 employees in the woodroom, 66 were transferred to other departments.

Although none of the workers affected was laid off, 11 voluntarily retired,

1 quit, and 1 died.

Of the 66 workers transferred to other departments, a large proportion were initially reassigned to the yard, and subsequently reassigned

as job openings developed in other departments of the plant. Fifteen months

after startup of the new system, one-third of the 66 workers were still

working in the yard.

Workers who were retained in the woodroom were also reassigned to

other jobs. Only five were assigned to the same job they had before the

change.

Downgrading and Upgrading. Approximately two-thirds of the workers affected

by these changes experienced some change in grade status. (See table 7.)

Forty-five workers were upgraded, and 30 were downgraded. Those who remained

in the woodroom had about the same experience as those who were transferred.

Although the hourly wage rate for some employees declined upon transfer from

the new woodroom, percentage wage increases received by these employees in

the next year more than offset most of these reductions.

Changes in Plant Employment. Total plant employment declined by 60 employees

from December 1954 to December 1955, or 4.1 percent. This reflected quits,

layoff of temporary workers and those with the least seniority in the mill,

as well as retirements. Some retired because of management*s program to

encourage retirement of eligible workers in order to make positions available.

Total employment in 1956 rose to nearly the 1954 level, the year preceding the

change, and again declined in 1957. Although the employment increase in 1958

more than offset the 1957 decline, employment was still not as high as in

1953. Production in 1958 was about 2 percent below 1953.

Change in Occupational Structure

A major result of mechanization was the elimination of many jobs

primarily done by hand. The job of hand barker was eliminated entirely.

Other job classifications either abolished or substantially cut back included

tail sawyer, sorting conveyor, and pond man. The number of job titles was

reduced from 34 before modernization to 13 after modernization.

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Table 6. Plant Ai Job status of workers formerly assigned to the old

woodroom 15 months after startup of the new system

Workers

Job status

Number Percent

T o t a l .... . 127 100.0

Remained in woodroom ........... ....... . 48 37.8

Assigned same j o b ............................... 5 3.9

Assigned different job .......................... 43 33.9

Transferred to other departments ................. . 66 52.0

Y a r d ............................ ................ 22 17.3

Finishing room .................... ........ . 10 7.9

Maintenance ........ ........... .................. 6 4.7

Cleaning ............ ............ ............. . 5 3.9

Stock preparation ......... ...................... 5 3.9

Screens and deckers ............ ................. 4 3.1

Shipping ........................................ . 3 2.4

Other (units receiving fewer than 3 employees) .. 11 8.7

13 10.2

Laid o f f ..... ........... ................. ...... m m ----

Retired ................... ......... ............. ii 8.7

Q u i t .......... .................................. i .8

D i e d ............................ ................ i .8

Note: Because of rounding, sums of individual items may not

equal totals.

Source: Plant records

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Table 7. Plant At Grade status of woodroom workers who remained In the unit,

and of those who transferred to other plant departments

Grade status

Total Workers remaining

in woodroom

Workers transferring

to other departments

Number Percent Number Percent Number Percent

Total ........ ■Jh h m

100.0 48 100.0 66 100.0

Upgraded ......... 45 39.5 18 37.5 27 40.9

No change in grade 39 34.2 18 37.5 21 31.8

Downgraded ....... 30 26.3 12 25.0 18 27.3

Sourest Plant records.

Another significant change was the shift of maintenance workers to

the central plant maintenance pool. Seven maintenance occupations were used

in the old system, compared with only two in the new woodroom. Since the

new equipment is more complex than the old. it required more technical maintenance. For this reason, management centralised the maintenance function.

Although a number of jobs were abolished in the new woodroom.

several new job classifications were created. The controller, a key job

in the new system, controls a number of processing operations over a wide

area. He stands near the main conveyor and oversees and regulates the

speed of the conveyor and the flow of logs through processing stations by

means of a central control board. He has responsibility for coordinating

operations from the time the logs leave the barking drums until they are

reduced to chips and transferred to storage. The controller communicates

by phone with the sawyer and chip bin operator for purposes of production

control.

Some jobs retained the same job title but were changed in content.

The change in the sawyer's duties illustrates the extent to irfiich some workers have been removed from direct manual participation in the production

process. The sawyer in the old woodroom manually operated a lever to control

the movement of a steam-powered carriage used to transport logs to the saws.

He made his adjustments in operation of the equipment on the basis of sensations such as vibration and sound. The sawyer in the new system, however,

controls this operation by pushbuttons located on a central control panel.

He stops and starts the movement of the carriage without manual intervention.

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Jobs at various stages of the production process now require less

physical activity. The method of transporting logs through the pond* for

example, has changed. Formerly, pond men utilizing long spiked poles manually pushed logs through the pond to the woodroom entrance. Now an electric pump produces a current of water which provides sufficient force to

move these logs. Pond men are still required in the new woodroom, but

their job duties require less physical activity.

Improved barking and pulp cleaning methods and a more efficient

conveyor system also reduced physical demands of splitting and sorting jobs.

The procedure for sorting logs is the same, but workers now have fewer logs

to remove by hand from the conveyor for return to the drums for debarking.

The splitting and sorting man is no longer required to manually position

oversize logs in the splitter, since they are now transported to the chipper

by conveyor and positioned automatically.

Table 8 summarizes the overall change. The new equipment reduced

markedly the proportion of workers in hand occupations. In the old woodroom, more than half of all workers were hand laborers. After modernization,

however, only about one-third of all workers were in this category, and more

than half were machine operators or tenders. The proportion of supervisors

was also higher after the change, although the actual number was less.

Table 8. Classification of woodroom occupations, by job content,

before and after modernization

Before After

Job classification modernization modernization

Number Percent Number Percent

Total ........ .............. 127 100.0 48 100.0

5 3.9 2 4.2

Machine operators and tenders .. 34 26.8 27 56.2

Machine feeders ................ 6 4.7 0 mtmmm

Maintenance w o r k e r s..... ...... 13 10.2 2 4.2

Hand laborers .................. 69 54.3 17 35.4

Note: Because of rounding, sums of individual items may not

equal totals.

Sourcet Derived from data from plant records.

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Overall Change in Grade Level. One method of assessing the effect of new

technology on skill requirements in the woodroom is to compare the average

wage (or grade) level before and after the change. This method gives only

an approximation, however, since wage rates are based not only on skill

requirements, but also on such factors as working conditions and Job

responsi bi1i ti es.

The average hourly wage (adjusted for percentage wa<>e increases)

increased only slightly— from $1.80 in 1954 to $1.82 in 1956; the overall

labor grade thus remained practically unchanged. Significant shifts occurred,

however, in the proportion of workers in high-end low-wage categories. For

example, in the old woodroom only about 1 out of every 25 workers was in a job

paying a wage equivalent to $2 an hour. After modernization, however, approximately 1 out of every 7 workers was making $2 or more. (See table 9.)

Table 9. Average hourly wage rate and percent distribution of woodroom

employees by wage rate, before and after modernization 1/

Before

modernization

After

modern!zation

Number of jobs

or employees

Percent

Number of jobs

or employees Percent

Total ......... 127 100.0 48 100.0

$2.20 and over .... 4 3.1 2 4.2

$2.10-$2.19 ...... 1 .8 1 2.1

$2.00-$2.09 ...... 0 * • 4 8.3

$1.90-$1.99 ...... 10 7.9 2 4.2

$1.80-$1.89 ...... 17 13.4 5 10.4

$1.70-$1.79 ...... 95 74.8 34 70.8

Average hourly rate $1,799 $1,817

l ! In order to compare average rates affected by job changes only,

rates before modernization were Increased by an amount approximating percentage wage increases between the two periods.

Source: Derived from data from plant records.

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Plantwide Changes* Important shifts in the job structure of the mill as a

whole have taken place in recent years. Although not directly related to

the changes in the woodroom, they are indicative of the effects of changing

technology in the plant as a whole. Between 1953 and 1958, the proportion

of employees in administrative, professional, and office occupations Increased

in importance relative to those in production and related jobs. Although

total employment increased by only 2.0 percent, the number of administrative,

professional, and office workers increased by 28.1 percent. The number of

production and related workers, however, increased by only 0.3 percent.

(See table 10.)

Table 10. Plant A: Composition of the work force by occupation or

plant department, 1953 and 1958

Occupation or plant department 1953 1958

Number Percent Number Percent

Total employment ................... 1.454 100.0 1.483 100.0

Administrative, professional, and

office employees ...... .............. 89 6.1 114 7.7

Administrative ................... . 3 0.2 3 0.2

Supervisors and foremen ......... . 41 2.8 54 3.6

Engineers, chemists, and draftsmen .. 4 0.3 3 0.2

Typists, stenographers, etc....... . 38 2.6 52 3.5

Miscellaneous office ................ 3 0.2 2 0.1

Production and related workers ....... 1,365 93.9 1,369 92.3

Wood preparation and handling ...... 183 12.6 94 6.3

Pulp mi 11 ........................ . 154 10.6 161 10.9

Paper mill ........ ............. . 297 20.4 290 19.6

Finishing and converting ............ 230 15.8 275 18.5

Shipping and receiving .............. 20 1.4 21 1.4

Maintenance and repair ............. . 171 11.8 214 14.4

Laboratory testing and research ..... 24 1.6 25 1.7

Other I f ...................... . 286 19.7 289 19.5

etc.

1/ Includes powerhouse, storeroom, custodial, yard, timekeeping,

Note: Because of rounding, sums of individual items may not

equal totals.

Source: Plant records

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Several overhead occupational groups increased in relative irnportance during this 5-year period: supervisors and foremen, maintenance and

repair workers, and typists and stenographers. Employees in the finishing

and shipping activities also gained in relative importance.

Employment in wood preparation and handling activities declined

sharply, owing to the installation of the new laborsaving equipment in the

woodroom. In 1953, 2 years prior to modernization, 12.6 percent of all

employees were engaged in wood preparation and handling tasks. By 1958,

however, only 6.3 percent of all employees were in these activities.

A significant change has been a growing need for specialized

employees to maintain more extensive and more complex instrument systems.

Prior to World War II, plant A needed only one employee working on a parttime basis to service instruments. At present, however, a crew of six

full-time instrument repairmen is employed.

The size and skill requirements of the parent company*s plant

engineering staff (those in charge of building new equipment and making

major repairs) were also affected. In 1940, only seven employees were on

its engineering staff--four engineers and three draftsmen. By 1959, the

engineering staff had grown to 24 employees— 15 engineers and 9 draftsmen.

Management at company A now seeks "engineers** with more formal

training. It feels that modern papermaking equipment requires more skill

and a broader education in engineering. Thus, the company will eventually

hire only college graduates to fill these jobs. A graduate engineer is now

in charge of the engineering group, replacing an employee who "had come up

from the ranks."

Training and Retraining

Skill in operating the new woodroom equipment required only Informal

on-the-job training of workers assigned to new jobs. Representatives from

the equipment manufacturer provided instruction. Since most of the job

duties in the new system were not complex, the training period generally

required only 1 month. The jobs of foremen, controller, and sawyer, the

most responsible positions in the new woodroom, required the longest period

of training. Employees received their regular wages during the training

period.

Retraining Reassigned Employees. Workers assigned to jobs elsewhere in the 

mill were not given special retraining. During the 30-day probationary

period provided for in the union agreement, these workers were able to

learn their duties on the job. Four employees from the repair crew in the

old woodroom, however, were assigned to formal training in the millwright

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apprenticeship program. All of these employees became millwright journeymen

within 15 months after the change, and consequently were upgraded in pay.

Formerly, they were performing "handyman” type duties. This training program

provided an opportunity to acquire new skills in equipment maintenance.

Educational Requirements for New Jobs. A significant result of installing

new woodroom equipment was the requirement of formal education for employees

entering the new jobs. No such requirements existed for jobs in the old

woodroom. At first, management felt that the increased complexity of the new

equipment, especially the new central control board, would require the foremen and controller be high school graduates, and that employees in the remaining positions have at least an eighth grade education. After the woodroom had been in operation for a time, however, management reduced entry

level educational requirements for the foreman and controller jobs, from a

high school to an eighth grade education.

Effect on Safety Conditions

The woodrooms are one of the most hazardous work areas in a paper

mill. Workers are in danger of injury from falls on wet surfaces, from being

caught in conveyors and other moving equipment, from being struck by logs and

chips, and from incurring strains in lifting and positioning heavy logs.

The new equipment in plant A reduced the danger of cuts and puncture

wounds from barking knives and long spiked poles, but increased the work

hazards associated with more powerful and more extensive conveyor systems,

and more powerful processing equipment.

The elimination of hand barking and hand knotting operations in

the new woodroom removed a hazard from the sharp cutting knives, a particularly troublesome source of injury. Another source of injury eliminated

was the use of long spiked poles to sort and route logs along the pond and

the conveyors. Since the number of employees using these spiked poles has

been substantially cut back, the number of injuries has fallen correspondingly.

The powerful main conveyor and the 1,000 hp., 360 r.p.m. chipper

are considered potential sources of serious injuries in the new woodroom.

An electric eye safety device has consequently been installed above the main

conveyor belt and just ahead of the chipper. Should a workman or an oversize log inadvertently approach the entrance of the chipper, the beam of the

electric eye is broken, the conveyor stops immediately, and the barking drum

doors close automatically.

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Statistics on the frequency of disabling injuries for the woodroom

and for the total plant are shown in table 11. The high injury-frequency

rate in 1955 was due primarily to the newness of the equipment. As workers

became accustomed to the new equipment and work flow in the new systems, the

rate of injuries declined sharply.

Table 11. Plant A: Frequency of disabling injuries 1/

(per million man-hours), total plant and woodroom, 1954-58

Area

Year

1954 1955 1956 1957 1958

Total plant ....

Woodroom.... .

7.05

16.87

10.15

65.19

9.22

15.67

6.61

(2/)

9.25

19.62

1/ An injury which renders an employee unable to perform his

regular job duties.

2/ Information not available.

Source: Plant records*

The Older Worker and the Changeover

The changeover to a more mechanized woodroom created factors both

favorable and unfavorable for the utilization of employees age 45 and over.

No arbitrary age barriers were imposed for new jobs. A provision in the

union agreement which provides a 30-day trial period without loss of seniority for employees transferring to new positions proved a useful mechanism

for reassigning older workers.

Older employees benefited from the seniority provisions in the

union agreement to the extent that they were retained in their former workplace to a greater extent than were younger employees. In addition, 4 out

of the 5 employees who retained the same job after modernization that they

had held before the change were age 45 or over. (See table 12.)

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Table 12. Plant A: Job status of woodroom workers 15 months

after startup of new woodroom, by age group

Job status

Workers

under age 45

Workers age

45 and over

Number

Percent

of total Number

Percent

of total

Total ........................... 60 100.0 67 100.0

Remained in woodroom ............... 21 35.0 27 40.3

Assigned same job ................ 1 1.7 4 6.0

Assigned different job .......... 20 33.3 23 34.3

Transferred to other departments ... 37 61.7 29 43.3

Left the company ................... 2 3.3 11 16.4

Laid off ......................... 0 0 --

Retired ................ .......... 0 - - 11 16.4

Quit ...................... ....... 1 1.7 0 - -

Died ............................. 1 1.7 0

Note: Because of rounding, sums of individual items may not

equal totals.

Source: Plant records.

Some problems arose, however, in reassigning older employees to

positions in the new woodroom. For example, a 66-year-old sawyer in the

old woodroom with 40 years of company service was extremely reluctant to

accept a job as sawyer in the new woodroom because of the increased responsibility. The company felt, however, that he could perform well in the new

position on the basis of his prior work record. After a discussion with the

foreman, the employee accepted the job and performed satisfactorily for

nearly 3 years until he retired.

Special Problems of Retraining Older Workers. A special provision for the

retraining of an older worker to avoid layoff was worked out through joint

union-management negotiation. The union requested that the company permit

an older relief repairman to enter the maintenance apprenticeship training

program to avoid his being laid off after startup of the new system. The

company acknowledged "that /this matter7 was something that could be discussed, although the company had taken a pretty definite stand /against this7

because of the employee’s age (52). If the union has some new angles, we

might explore them.” A special program was finally worked out without establishing a precedent, and the employee became a millwright apprentice.

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Labor-Management Practices Regarding Personnel Adjustments

About 18 months prior to the startup of the new woodroom, management

informed employees in the old woodroom about the forthcoming technological

changes. Notice was given that a sharp cutback in woodroom employment would

occur. The woodroom foreman assured employees, however, that efforts would

be made to reassign affected employees to other positions within the mill.

During the 12 months immediately preceding startup, the progress of

the change was discussed with union representatives. Within management, plans

for achieving an orderly transition were formulated. The Assistant Director

of Industrial Relations, in a memorandum to the woodroom superintendent,

wrote that:

The new woodroom has been designed to do the

necessary work of wood preparation with a minimum

of manual labor , • • definite plans must be made

for reducing the present woodroom crew so that the

change can be made in an orderly manner with minimum hardship.

As planning progressed, management was able to determine its personnel requirements more precisely and concluded that all affected employees

could be utilized somewhere in the plant and that there would be no layoffs.

During one of the union-management meetings before-the changeover, company

officials set forth certain policies to reduce personnel displacements.

As permanent openings occur in the mill, woodroom

personnel will be studied to see if a qualified employee

is available to fill such a vacancy. His place to be

filled then with a yard employee with less seniority, or

if no one is available, a man will be hired with the

understanding that his woodroom job is only of a temporary nature.

Encourage those of retirement age in the woodroom

to retire when the new woodroom is in operation in order

to move younger men up in the new woodroom.

Encourage men throughout the mill who are of retirement age to retire so that more jobs are available

throughout the whole plant.

Inform woodroom men who will lose their jobs in

the woodroom to come in and talk over with the woodroom superintendent, their qualifications and where

they would like to work.

This statement of management^ policy regarding the adjustments was received

favorably by union representatives.

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Practices Regarding Reassignment. Reassignments of workers were made according to the provisions regarding seniority in the union agreement. These provisions included:

Seniority with ability and qualifications shall

govern in promoting, demoting, transferring, filling

vacancies and new positions, layoffs, and recalls

after layoffs . . .

If there should be any difference of opinion as

to the ability and qualifications of an employee being considered for promotion, the Committee and the

Management shall take the matter up for adjustment

and settle such differences before promotion is

allowed . . .

An employee who is transferred or promoted shall

be on probation for 30 days for determination as to

whether or not he can meet the job requirements.

This probationary period may be extended by mutual

consent in cases requiring more than 30 days. If

at the end of this period, he fails to qualify, or

in case of discontinuance of his position during

this qualifying period, he shall be returned to his

former position without loss of seniority.

Employees transferred from one division or department to another shall be identified as temporary

or permanent, with a written notice of permanent

transfers given the union . . . Permanently transferred employees will be considered new employees

in the division or department to which transferred

with their department or division seniority accumulative from the date of transfer . . .

The seniority provisions governed both the selection and assignment

of former employees of the old woodroom who were retained in the new woodroom,

and the transfer and reassignment of those who were no longer required. The

latter constituted the bulk of the original group.

Management posted job openings as they developed throughout the

mill, and interviewed woodroom workers whose jobs were affected to determine

their job preferences. Efforts consistent with seniority and ability provisions of the union agreement were made to place these workers in jobs they

desired. A number of workers were initially reassigned to the yard, and subsequently reassigned to other mill departments. As workers were gradually

transferred out of the woodroom, temporary workers were hired to take their

place to insure continuity of operations.

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The 34 men with the longest seniority were finally retained. In

assigning these men to jobs, the woodroom foreman first drew up two alternative rosters which listed them by seniority. One list placed them according

to age and physical condition, following the line of seniority as much as

possible and utilizing their experience and skills by placing them in jobs

comparable with their present duties. The second list considered seniority

only, with the older men falling in line for the more important and physically

demanding jobs. The foreman then sent these lists to the woodroom superintendent who forwarded them to the pulp mill superintendent with a recommendation that only the first list be considered. The woodroom superintendent

subsequently talked individually to the 34 men to explain further the operation of the new woodroom, to tell them about the jobs to which they might

eventually be assigned, and to learn of their Individual job preferences. A

summary of the interviews was also forwarded to the pulp mill superintendent.

Management then developed a tentative staffing pattern based on the

recommendations and interviews and submitted it to the union for comment during a regularly scheduled union-management committee meeting. Several staffing changes were made as a result of these discussions.

Setting Wage Rates for New Jobs. One of the most important steps in planning

for the changeover was establishing wage rates for new jobs. The general

procedure was provided in the union agreement.

Individual wage rates for new jobs or substantially

changed jobs may be considered for special negotiations

at any time during the term of the agreement . . .

Since the extensive technological changes resulted in a substantial

change in the structure and content of woodroom jobs, management decided to

initiate a more systematic procedure for describing jobs and establishing

wage rates. The new method involved an intensive analysis of the new jobs on

the basis of their educational requirements, responsibility, skill, and physical demands, learning time, and job hazards.

Tentative rates for new jobs were established, subject to revision

after a 60- to 90-day equipment shakedown, and were then submitted to the

union for review. The company and union met prior to startup to discuss these

rates. Several revisions were made on the basis of the negotiations.

After the woodroom had been in operation 4 months, union and management officials met again to evaluate the tentative rates on the basis of

actual operating experience. The union proposed that the hourly rate for six

job classifications be revised upward on the basis of unanticipated changes

in job skill and responsibility requirements. The company concurred on four

jobs, felt no change was necessary for one job, and postponed action on another

pending installation of additional equipment. New rates were made retroactive

to the date of initial startup. Table 13 summarizes the union and company

positions and the final disposition of rates.

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Table 13. Plant A: Results of union-management negotiations over wage rates

for selected woodroom occupations, based on operating experience

Job title Union position Company position Results

Foreman .......... Job compares with a craft

journeyman; rate should

be increased.

Job carries increased

equipment responsibility, but decreased

employee responsibility.

Rate increased

4 cents an hour.

Controller ...... Job carries responsibility

to keep production moving;

rate should be increased.

Responsibility for keeping production moving is

recognized.

Rate increased

5 cents an hour.

Pondman .......... Job duties require several

sets of work clothing;

rate should be increased.

Rate satisfactory. No change.

Sawyer ........... Job content has changed;

large saw requires fulltime operator; rate initially set on basis of

part time on large saw

and part time on groundwood saw; rate should be

increased.

Change in job content

recognized.

Rate increased

6 cents an hour.

Chip bin

operator ...... Rate should be increased. Job responsibilities

recognized.

Rate increased

3 cents an hour.

Bark handler .... Rate should be increased. Additional equipment to

be installed; rate study

should be postponed

pending installation.

Postponed action.

Source: Plant records.

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Case Study of the Introduction of Continuous Processing Equipment

Summary

This study describes the installation of a continuous digester to

replace an obsolete batch system in manufacturing semichemical pulp. As a

result, output per man-hour rose by one-fourth after conversion. Because of

the narrowness of the seniority system, the elimination of an entire line of

progression meant that some senior workers were downgraded while others with

less seniority but in a different line of progression were promoted to better

jobs created by the new technology. Management avoided layoffs by transferring employees whose jobs were eliminated temporarily to the extra board

(a work pool from which temporary and permanent placements are made), and

later to other mill departments. The new system required machine operators

instead of the former manual labor occupations. The new operation entailed

not only training workers on the job, but also providing some outside instruction.

Description of Plant

Plant B is the largest employer in its community, with over 3,500

employees and an annual payroll of about $18 million. It produces about

300,000 tons of paper, primarily bags and unbleached kraft papers. About

one-third of the mill's output is converted into finished products by the

plant's Container Division, located at the same site. The bulk of the remaining output is shipped to other plants within the parent company, a large,

diversified pulp and paper manufacturer. Nearly 90 percent of pulp produced

is sulphate pulp, and the remainder is semichemical pulp.

Plant B allocated considerable funds for new equipment during the

postwar period. A major outlay was $1.1 million for a continuous digester

and washing system to manufacture semichemical pulp from low-cost hardwoods.

This shift to continuous digester operations in pulping is one of the important technical changes taking place in the industry.

Future installations in the plant will center on mechanized materials handling equipment to achieve economies in unloading pulpwood logs from

railway cars and trucks and in handling paper rolls in shipping. The plant

also plans to purchase more pulpwood in chip form.

Major Technological Changes

Plant B converts wood chips to pulp in large cylindrical steel

tanks (digesters), cooking with chemicals under heat and pressure. This

pulp is then washed and refined prior to being sent to the papermill for

conversion into paper and paperboard.

Prior to installing new equipment, pulp was prepared by the batch

method in four conventional digesters and subsequently transferred to a diffuser room where it was washed in eight diffuser tanks (large steel vats).

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The batch method of preparing and washing pulp required employees to move and

service heavy equipment manually. The sequence of operations was repeated

for each digester in a rotating cycle.

Planning the Change. A major reason for installing the new system was that

the conventional digesters were rapidly becoming corroded, owing to the action

of the cooking liquor. Since operating efficiency was declining, management

decided to install an alternative system for producing semichemical pulp.

A team of three company engineers was assigned responsibility for

determining the economic possibility of a continuous digester. The team

estimated that it would yield savings and greater yields sufficient to amortize the equipment cost in about 4 years, even though the cost of this new

equipment was about four times greater than the cost of relining the old

digesters.

The planning team selected the new equipment and developed instrumentation and controls with engineers from the equipment suppliers. The new

system required not only the continuous digester itself, but also pulp washing equipment; chip storage silos; conveyors and elevators; a pulp storage

tank with circulating pulp conveyor system; numerous control instruments; and

graphic control panels, pumps, and compressors. More than 12 different companies supplied this new equipment.

The equipment was installed primarily by the company's regular

maintenance crew. During construction and initial startup periods, representatives from equipment suppliers were on hand to assist company engineers. Complete Installation required about 10 months.

The New System. The new continuous system began production in April 1957.

Equipment ranging in age from 2 to 40 years was replaced. The old digesters

were kept in place and can be put into service in the event of a prolonged

breakdown of the new equipment. The two major differences between the old and

new systems are summarized in the following paragraphs.

Continuous Production. An outstanding feature of the change is conversion

from batch to continuous production. In the new system, chips are fed continuously and compacted by a screw conveyor; cooking liquor is added automatically and the pulp, under constant and uniform pressure and temperature,

flows through the digester and then on to a continuous pulp discharger which

automatically removes partially delignified chips from the digester and deposits

them in a storage tank. A mechanism automatically draws the pulp through the

tank and deposits it on moving conveyors, which transport it to the washing

machinery.

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The washing cycle is also continuous and automatic. Chips are

forced through the washing equipment in two stages* During the first stage,

cooking liquor is removed until the pulp reaches a specified consistency.

Water is added, and the pulp is transferred to the second washing unit where

the cycle is repeated. During these stages, the chips are being "defibered,"

a process which was not done in this cycle under the batch system.

More extensive Instrumentation. The continuous flow of chips and liquor

through successive processing stages required more instrumentation than was

used in the batch system. A feature of the new system is the graphic control panel, located in an air-conditioned room, where the instruments are

displayed.

The entire operation is now monitored and controlled by two men,

one In the control room and the other in the pulp washing area. Since all

instruments are clearly visible, the operator can quickly make required

adjustments in operations such as changing steam and liquor flow rates, and

conveyor speeds. An alarm mechanism is built into the system to quickly

pinpoint the unit where an equipment breakdown has occurred. This unit

automatically closes down until repairs are made.

The vast change in the extent of mechanization and its effect on

plant capacity is shown in table 14.

Table 14. Plant B: Horsepower installed, and daily capacity,

before and after technological change

Indicator Former

system

New

system

Percent

change

Total horsepower Installed ........

Horsepower per worker .................

Daily capacity (tons) .................

Horsepower per ton of capacity .......

120.0 1,135.0 845.8

10.0

175.0

.7

141.9

150.0

7.6

1,319.0

-14.3

985.7

Source: Derived from data from plant records

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Effect on Output Par Man-Hour

The effect on output per man-hour of installing the new pulping

equipment is shown in table 15.

Table 15. Plant B: Output per man-hour, and unit man-hour requirements,

semichemical pulping, before and after technological change

Item Year before change

Year after

change

Percent

change

Tons produced (daily average) .... 119.0 99.0 -16.8

Man-hours (daily) ................ 96.0 64.0 -33.3

Tons per man-hour (average) ..... 1.24 1.55 25.0

Man-hours per ton (average) ..... .81 .65 -19.8

Source: Derived from data from plant records.

Although output per man-hour increased significantly, production

was not as great as management anticipated. Actual production fell substantially short of the 126 tons desired. One reason was that equipment downtime

for maintenance was much greater than expected. The continuous system has a

greater number of motors, pumps, conveyors, and other moving parts than the

batch system. Foreign objects in the wood chips, and malfunctions in moving

parts caused some costly shutdowns during the first few months of operation.

However, improved operating techniques, more familiarity with equipment, and

equipment modifications are expected to reduce sharply the frequency of breakdowns. As downtime declines, both production and output per man-hour are expected to increase significantly.

Other Savings

The new equipment yields 10 percent more pulp from the same quantity

of wood through closer control of the cooking process. About a third less

steam per ton of pulp produced is used: the former equipment used approximately 4,500 pounds per ton, the new system, 3,000 pounds. The new continuous

system also has a potential for impressive savings in plant space. The system

now occupies an area formerly occupied by eight diffusers.

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Economies achieved in other parts of the mill comprised a significant, but not easily measured result of the new equipment. For example, the

use of high consistency washing equipment, which leaves a greater amount of

solids in the spent cooking liquor, led to economies in evaporator capacity

required.

Effect on Capital Requirements

The comparative capital requirements for the new and old systems

are shown in table 16.

Table 16. Plant B: Value of plant and equipment,

old and new semichemical systems

Item

Old

system

New

system

Percent

change

Value of plant and equipment .... 1/ $1,500,000 $1,085,000 2/ -27.7

Number of workers ............... 12 8 “ -33.3

Value of plant and equipment

per w o r k e r ................... $125,000 $135,625 8.5

Value of plant and equipment

per ton of daily capcity ..... $8,571 $7,233 -15.6

g- - - ■ -

1/ At time of purchase (estimated).

2/ Affected by price changes as well as amount of plant and

equipment.

Source: Derived from data from plant records.

Effect on Costs

In the first year after installation of the new system, the cost of

producing and washing a ton of pulp was greater than in the old system. Although significant savings were achieved, these economies were more than offset t>y unexpectedly high maintenance expenses as explained on p. 53. Table 17

gives a breakdown of unit costs, before and after the change.

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Table 17. Plant B: Percent distribution of unit costs

in semichemical pulping, before and after technological change

Item

Year before

change

Year after

change

Total ......................... 100.0 100.0

W o o d .... ........... .......... . 57.1 50.2

Chemicals .......... . 10.7 10.2

Conversion .............. ......... 32.2 39.6

Maintenance (labor and materials) 1/ 2.8 12.6

Operating labor ................ 5.9 3.4

Other c o s t s ................ . 23.5 23.6

\J Estimated.

Source: Plant records.

Within the maintenance account, the composition of cost items has

been changed significantly. Prior to the change, labor expenses amounted to

80 percent of total maintenance charges, and materials expenses were 20 percent. After the change, however, labor costs were about one-third, and parts

expense amounted to about two-thirds of total costs.

Effect on PIantwide Output Per Man-Hour

The gains in output per man-hour tfiich were achieved in the digester room had little effect on total plant output per man-hour. Over the same

period that output per man-hour rose by 25 percent in the digester room

(semichemical pulp), it increased by only 2.4 percent for the total plant.

Displacement and Reassignment

The change involved the elimination of 12 jobs and the creation of

8 new ones, but in the process 69 workers were affected because of shifting

and bumping.

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Of the 69 workers affected in the two seniority units (61 in the

digester room and 8 in the diffuser room), the 61 digester room workers remained in their unit, and the 8 diffuser room workers were temporarily reassigned to the extra board. These eight workers were eventually assigned

to permanent jobs elsewhere in the mill as positions became available. Four

other workers (three from the extra board and one from the chip bin) were

brought into the digester room to fill vacancies created triien workers moved

up to better jobs on the basis of their job seniority. (See table 18.)

Thus, the total number of jobs eliminated was small, but a considerable number of workers who remained in the unit were reassigned to new

jobs. Twenty-six of the 61 digester room workers were assigned to a different

job after the change.

Table 18. Plant 8: Job status of digester room and diffuser room workers

after technological change

Job status

Employees

Number Percent

Total .............................. 69 100.0

Remained in digester room ••••••••••••• 61 88.4

Assigned same job 35 50.7

Assigned different job •••••••••••••• 26 37.7

Diffuser room employees transferred

to extra board 8 11.6

Left the company ...................... 0 m m

Source: Plant records.

Downgrading and Upgrading. Of the 69 workers in affected units, 26 were upgraded an average of 6 cents an hour, and 8 were downgraded an average of 48

cents an hour. The remainder experienced no change in grade. (See table 19.)

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Table 19. Plant B: Grade status of workers in affected units immediately

after technological change

Grade status Number Percent

Average increase

or decrease

(cents per hour)

Total .................... 69 100.0

Upgraded ........ ............ 26 37.7 6.2

No change in grade .......... 35 50.7 --

Downgraded...... . 8 11.6 -47.5

Source:

From 7 to 16 months after assignment to the extra board, the eight

workers who experienced sharp cutbacks in pay were reassigned to permanent

jobs elsewhere in the mill. They were not able, however, to regain a wage

level equivalent to that prior to the change. The average hourly wage rate

for the eight workers was $2.15 per hour prior to the change, but was reduced

to $1.67 per hour or 22 percent immediately after the change, and then rose

to $1.89 an hour after reassignment to jobs elsewhere in the plant. However,

this average hourly wage rate ($1.89) was still 12 percent below the average

rate they received prior to the change. (See table 20.)

Change in Occupational Structure

The most significant occupational change resulting from the new

equipment was a cutback in manual jobs involving physical, repetitive manipulation of machinery. Formerly, the workers whose jobs were eliminated manually unbolted and removed a heavy steel digester cover, lowered a chute into

the digester to refill it with chips after each cook, and then replaced the

digester cover and bolted it down. This sequence of manual operations was

repeated for each of the four digesters in a rotating cycle. In the washing

operation, the workers cleaned the diffuser tanks after each batch of chips

was washed— a physically demanding task. Employees in these jobs worked in

an atmosphere of wood dust, heat, and steam.

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Table 20. Plant B: Changes in job assignments and hourly wage rates of the eight diffuser room employees

whose jobs were eliminated

Employee

Job before change Job after change Subsequent change

Title

Hourly

wage

rate

Title

Hourly

wage

rate

Title

Hourly

wage

rate

Number of

months after

being assigned

to extra board

Unit

A .... Diffuser operator #2.1*0 Extra board 1 1 . 6 7 Second helper n.9ii 1 6 Brown stock washers.

B .... Diffuser operator 2.1»0 Extra board 1 . 6 7 Filter man 2 . 2 7 12 Yard.

C * ... Diffuser operator 2.1(0 Extra board 1 . 6 7 Chip bin 1.91 11 Digester room.

D .... Diffuser operator 2.U0 Extra board 1 . 6 7 (i/) <2 /> (3/) (i/>

E .... Diffuser dumper 1.89 Extra board 1 . 6 7 Utility man 1.73 10 Sulphate finishing room*

F •••• Diffuser dumper 1.89 Extra board 1 . 6 7 Salt cake roller 1.80 — Recovery room.

G • • • • Diffuser dumper 1.89 Extra board 1 . 6 7 Salt cake roller 1.80 8 Recovery room.

H .... Diffuser dumper 1.89 Extra board 1 . 6 7 Salt cake roller 1.80 7 Recovery room.

1/ Information not available.

Source: Plant records*

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The content of the new jobs contrasted sharply with that of the

eliminated jobs. The operator (pandla cook) monitors a graphic control panel

of dials located in an air-conditioned room. On the basis of his readings,

he manually adjusts controls which vary digester pressure and temperature,

steam and liquor flow, stock chest level, and conveyor speed. He also records certain instrument readings in a logbook every hour.

In addition to assisting the pandia cook, the assistant operator

(pandia helper), occasionally leaves the control room to tour the pulping

and washing area to check the condition of the equipment. He also records

hourly data from instruments.

The impact of these changes on the digester room occupations is

summarized in tables 21 and 22. Before the change, about 3 out of every 4

workers were hand laborers; after the change, about 2 out of every 3 workers

were in this category. For the semichemical unit only--where the new technology was introduced--the occupational shift was more striking. All workers

are now machine operators, whereas before they were all hand laborers.

Table 21. Plant B: Staffing pattern of digester room

and No. 2 diffuser room, before and after technological change

Occupations

Number employed

Be fore

change

After

change

Total .............................. 69 65

Digester room ......................... 61 65

Digester cooks ...................... 8 8

Assi stant cooks *.... ................ 4 4

Pandia cooks ........................ — 4

Pandia helpers ...................... — 4

Gas off m e n ....... ................. 12 12

Measuring tank men ................ 4 4

Blow m e n ......... ............. . 4 4

Blow men helpers ......... 4 4

Cappers .......... .................. 25 21

No. 2 diffuser room .................. 8 0

Diffuser operators .................. 4 1/

Diffuser dumpers .................... 4 1/

1/ Diffuser room closed down

Source: Plant records.

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Table 22. Plant B: Distribution of digester room and No. 2 diffuser room occupations

by classification, before and after technological change

Job classification

Digester room and

No. 2 diffuser room 2/ Semichemical unit only

Before change After change Before change After change

Number Percent Number Percent Number Percent Number Percent

Total .......... 69 100.0 65 100.0 12 100.0 8 100.0

Supervisors ...... 1/ 4 5.8 1/ 4 6.2 0 » mm 0 » « ■

Machine operators.. 12 17.4 17 26.2 0 — 8 100.0

Hand laborers .... 53 76.8 44 67.7 12 100.0 0

1/ A digester cook is a working foreman.

2 / After the change refers to digester room only; No. 2 diffuser room was closed down. o

i

Note: Because of rounding, sums of individual items may not equal totals.

Source: Derived from data from plant records.

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Overall Change In Grade Levels* Based on comparisons of average hourly rates,

skill requirements in the new semichemical unit, where most of the job changes

took place, increased slightly after the change: wages rose less than 2 per*

cent--from $2.05 to $2.08 per ton. (See table 23.) In the digester room, the

change had little impact on the overall skill level of the unit.

In comparing skill levels only on the basis of wage rates, however,

it is important to keep in mind that wage rates are established not only on

skill levels, but also on working conditions. For example, the unpleasant

working conditions of the diffuser dumper were important considerations in

establishing his wage rate.

Plantwide changes, 1953-58. From 1953 to 1958, total plant employment declined by 5.6 percent, but production increased by 2.6 percent. The reduction in employment was accomplished by not filling vacancies and not rehiring

workers released because of a business decline. The increase in output per

man-hour in the digester room was among the factors enabling the plant to increase production with fewer workers.

The relative Importance of administrative, professional, and office

employees increased from 10.2 percent of total plant employment in 1953, to

11.3 percent in 1958. (See table 24.)

Significant gains in the relative importance of specific occupational groups occurred. Supervisors and foremen, for example, rose from 3.8

to 4.5 percent of total employment. Engineers, chemists, and draftsmen also

increased slightly in importance over the 5-year period.

Training Workers for New Jobs

Training employees to provide them with the skills needed to perform new jobs was especially important, since the content of the new jobs

differed considerably from the old ones.

Workers selected for new jobs received training over a period of

6 months prior to startup of the new system. As a first step, company engineers prepared a detailed illustrated manual describing the new system's

operation, a copy of which was given each worker to study. Next, a series of

lectures on the subject was presented during working hours by company engineers and representatives of the equipment suppliers. Finally, practice runs

were held to acquaint workers further with the procedure for starting up and

shutting down the new system. When workers became proficient on the system's

operation, the new equipment was put into regular production. The company

now concludes,on the basis of operating experience, that a new worker can be

trained completely in about 2 or 3 weeks.

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Table 23. Plant B: Average hourly wage rate, and percent distribution of employees by wage rate

before and after technological change

Digester room and

No. 2 diffuser room Semichemical unit only

Before tech- After tech­ Before tech- After technological change nological change nological change nological change

Number of Number of Number of Number of

jobs or Percent jobs or Percent jobs or Percent jobs or Percent

employees employees employees employees

Total ............... 69 100.0 65 100.0 12 100.0 8 100.0

$2.60 and over ......... 8 11.6 8 12.3 0 0

$2.50-$2.59 ............ 0 -- 0 -- 0 -- 0 —

$2.40-$2.49 ............ 4 5.8 0 — 4 33.3 0 _

$2.30-$2.39 ............ 4 5.8 4 6.2 0 _ 0 _

$2.20-$2.29 ............ 0 — 4 6.2 0 -- 4 50.0

$2.10-$2.19 ............ 12 17.4 12 18.5 0 — 0

$2.00-$2.09 ............ 0 — 0 -- 0 __ 0 _

$1.90-$1.99 ............ 8 11.6 8 12.3 0 _ 0 _

$1.80-$1.89 ............ 33 47.8 29 44.6 8 66.7 4 50.0

Average hourly rate .... $2,075 $2,079 $2,053 $2,080

Note: Because of rounding, sums of individual items may not equal totals.

Source: Derived from data from plant records.

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Table 24. Plant B: Composition of the work force, by occupation or

plant department, 1953 and 1958

tfV'/MtnAf* 4 r%n />r nl anP rlonorfmor»t- 1953 1958

Number Percent Number Percent

Total employment (yearend).... . 2,007 100.0 1,891 100.0

Administrative, professional,

and office employees .......... . 204 10.2 214 11.3

Administrative ...................... 21 1.0 18 1.0

Supervisors and foremen ............ 77 3.8 85 4.5

Engineers, chemists, and craftsmen*. 20 1.0 26 1.4

Typists, stenographers, etc..... . 86 4.3 85 4.5

Production and related workers .... . 1,803 89.8 1,677 88.7

Wood preparation and handling ...... 81 4.0 69 3.6

Pulpmill ............................ 402 20.0 379 20.0

Papermill ................. . 317 15.8 315 16.7

Finishing and converting ......... . 93 4.6 78 4.1

Shipping and receiving ............. 67 3.3 59 3.1

Maintenance and repair ............. 428 21.3 404 21.4

Laboratory testing and research .... 96 4.8 92 4.9

Other 1/ ........................... 319 15.9 281 14.9

1/ Includes powerhouse, storeroom, custodial, yard, timekeeping,

etc.

Note: Because of rounding, sums of individual items may not equal

totals.

Source: Plant records*

Retraining Reassigned Workers. Those who were assigned to different jobs

were not formally retrained. Workers who moved into new jobs within the digester room on the basis of seniority were generally familiar with the duties

of the next position to which they would be assigned within the job progression system. These workers were able to learn specific duties of the new

jobs during the 30-day probationary period provided for in the union agreement. No training was given to the eight workers assigned to the extra board,

since their next job assignment was not yet determined.

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affect on Safety Conditions

Compared with the batch system, the continuous pulping installation

is a safer workplace. There is less danger of workers accidentally falling

into the digesters, or of being injured by flying chips and wood dust. Since

the work of the capper and diffuser dumper have been abolished, there has also

been a reduction in muscle strains.

Labor Management Practices Regarding Personnel Adjustments

Affected workers were informed in advance concerning their reassign*

ment. Since no layoffs were planned, those whose jobs were being abolished

when the unit was closed down were informed, under terms of the union agreement, that they would be "bumped back" to the extra board. This information

was given verbally by the tour foreman, but most workers were already aware

of the proposed change, owing to informal discussion with members of the planning group.

Practices Regarding Reassignments. Reassignments of workers to different

jobs were made according to provisions of the union agreement. These provisions include:

The principles of departmental seniority, if the

employees in question are equally capable and efficient,

will be given every consideration by the management in

all promotions and demotions . . . and layoffs and rehiring.

In each line of promotion, seniority will be based

on length of service in each position, rather than on

total length of employment with the company.

The management will consult with the departmental

adjustment committee . . . in regard to layoffs and rehiring. Men will be hired in the reverse order in which

they were laid off.

Since workers in the diffuser room whose jobs were abolished constituted a complete seniority unit, they were transferred to the extra board.

At the same time, new jobs in the digester room were filled with workers from

the extra board who had some previous seniority in the digester room. (See

table 25.) These employees were given a 60-day trial period, according to

provisions of the union agreement. The assignment of lower seniority workers

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to digester room jobs over the displaced diffuser room workers with longer

seniority was governed by a clause in the union agreement:

Regular men whose jobs are abolished or who are

cutback due to curtailment of operations, will have

preference to extra work and vacancies in all parts

of the mill based on qualifications and date of employment (except these employees will not supersede

employees who acquired seniority in a unit prior to

July 1, 1956, or who have established callback time

in a department).

Although workers in jobs eliminated in the diffuser room averaged

twice as much plant seniority as those who moved into new jobs in the digester room, they could not be assigned to the new jobs as long as others

had some seniority within the digester room unit.

Table 25. Plant B: Average age, years of service, and wage rates of workers

in new jobs and in jobs eliminated

Item

Workers in new

jobs in the

digester room

Workers in jobs

eliminated in thi

diffuser room

Number of w o r k e r s .................... 1/ 8 8

Average age ......................... . “ 39,0 48.4

Average years of company service .... 11.2 22.1

Average wage rate:

Before the change .................. $2.02 $2.15

After the change ....... . $2.08 $1.67

1/ Includes 4 digester room workers whose jobs were abolished.

Source: Plant records.

Setting Wage Rates for New Jobs. In establishing wage rates for the new

jobs of pandia cook and pandia helper, management and union representatives

met to negotiate according to a general provision in the union agreement

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regarding changes in the schedule of rates:

The wag'e rates . . . shall remain in effect during

the term of this agreement, unless changed by mutual

consent of the signatory parties at a meeting called

on 30 days’ written notice by either of the parties

hereto.

Since both jobs were new to the company, management proposed that the hourly

rates for these positions be made comparable with those set for similar jobs

in plants in nearby states. Although the union representatives initially

accepted rates established by this method, they now feel, on the basis of

operating experience, that the rate for the pandia operator should be

increased.

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Case Study of an Automatic Paper Roll Handling System

Summary

The effect of installing an automatic paper roll handling system

in a recently built and highly mechanized mill was to expand capacity and to

reduce unit labor costs substantially in the shipping operations. The system

is an example of the most advanced automation in this operation. The change

involved moving conveyors with electronic devices that performed tasks for*

merly done by hand. Because of enormous increases in capacity and employment,

the changes were made with minimum dislocation. Employees acquired the skills

needed for operating and maintaining new equipment by attending a school operated by the equipment supplier. The new system required more supervisors and

machine operators but fewer record keepers and hand laborers. The overall

grade level, however, was not raised.

Description of Plant

Plant C employs over 800 workers to produce more than 425,000 tons

of kraft paper and board annually. This highly mechanized mill was constructed in the early 1950’s.

The high quality kraft paper and board produced is sold to bag and

box manufacturers and converted into such items as corrugated boxes, shipping

containers, bags, packages, and wrapping papers. About 50 percent of the

annual output is retained for use within the parent company.

The plant is owned by one of the Nation's largest paper and packaging manufacturers. Since the end of World War II, net sales of the parent

company have nearly tripled, largely as a result of the introduction of new

products such as glassine and greaseproof papers; waxed paper products; and

corrugated, folding, and setup boxes.

Plant C has had an equally impressive growth. In response to the

strong postwar demand for kraft products, capacity was increased by more than

300 percent and employment nearly doubled since the plant began operations.

Management plans to place high priority on improved quality control

procedures to meet increased competition among kraft producers. Beta gages

and equipment to measure moisture content of paper may be installed on papermaking machines to give continuous and more accurate quality control.

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Major Technological Changes

The major change described in this study concerned the finishing

and shipping department, the final processing area. Most of the plant's

production is shipped in large rolls each weighing as much as 3,000 pounds.

Some output is processed through finishing operations where it is converted

into sheets and rolls, according to customer specifications.

The Former System. Prior to the change, preparing rolls for shipment involved heavy manual operations. After leaving the winder at the end of the

Fourdrinier papermaking machine, rolls were pushed by hand onto a scale where

a worker recorded weight and hand stenciled information such as type of paper

and order number, on the face of the roll. Loose ends of paper were glued

down, plugs driven by hand into the center of rolls, and protective steel

bands were applied. Next, rolls were transferred by elevator and conveyor

to an area near the loading docks where they were inspected and moved by

forklift truck to railway cars and trucks.

The primary drawback of the old system was its lack of capacity to

handle additional output from a second papermaking machine installed in 1957.

Since all output must pass through shipping operations, a larger system was

felt to be necessary, with a capacity to process at least 1,300 tons of kraft

paper and board daily, instead of only 300 tons.

The old materials handling operation was also relatively inefficient

and time consuming. The rolls had to be transported a considerable distance

from paper machine to loading dock by hand and by lift truck. Management

therefore sought an alternative method, to achieve laborsavings and lower per

ton costs.

Planning the Change. To improve the system, the finishing and shipping superintendent and his staff, assisted by company engineers, began an intensive

study to develop better handling methods. Equipment manufacturers were consulted and their systems studied in detail. Finally, on the basis of these

studies, the planning group recommended the purchase of an automatic roll

handling system. Installation of the equipment by the manufacturer required

about 1 year.

The New System. The new automatic control and conveyor system began opera**

tion in the fall of 1957, simultaneously with startup of the new papermaking

machine.

The new system resulted in virtually automatic transfer of paper

rolls through shipping operations. It consists of a dual line of integrated

conveyors (one to service each papermaking machine) over which rolls are

mechanically transported to preselected loading areas. The control mechanisms include memory drums, photoelectric devices, switches, relays, and timers

which automatically start the equipment in sequence. Although rolls are still

stenciled, glued, and plugged by hand, significant laborsavings are derived

from more extensive and integrated conveyor systems, and automatic banders.

(See Fig. 2.)

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Processing paper rolls through shipping operations by an automatic paper roll

handling system

Worker controlling movement of paper roll along a conveyor line

Banding machine automatically applying steel straps to paper roll

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Some Indicators of Change. The total installed horsepower of equipment used

in shipping operations was nearly four times greater after modernization.

(See table 26.) Employment increased by 170 percent, but horsepower per

worker rose by only 44 percent. Horsepower per ton of capacity, however,

declined by 22 percent after the change.

Table 26. Plant C: Horsepower installed and daily capacity,

shipping operations, before and after technological change

Indicator Former

system

New

system

Percent

change

Total horsepower installed ....... 207 807 289.9

Horsepower per w o r k e r ............. 6.3 9.1 44.4

Daily capacity (tons) .... .......... . 300 1,500 400.0

Horsepower per ton of capacity ...... .69 1 .54 -21.7

Source: Derived from data from plant records.

Effect on Output Per Man-Hour

After modernization, output per man-hour was one-third higher,

total output rose by 267 percent, and total man-hours increased by 170 percent. Man-hours per ton of paper processed consequently declined by 26 percent. (See table 27.)

Table 27. Plant C: Output per man-hour, and unit man-hour requirements,

shipping operations, before and after technological change

Item

Former

system

New

system

Percent

change

Tons processed (daily average) ...... 300 1,100 266.7

Man-hours (daily) .................... 264 712 169.7

Tons per man-hour (average) ......... 1.14 1.54 35.1

Man-hours per ton (average) ......... .88 .65 -26.1

Source: Derived from data from plant records

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Effect on Maintenance Requirements

Maintenance requirements for the new equipment have been higher

than anticipated. Most of the mechanical and electrical equipment used in

operating the conveyors is located below floor level where inspection and

maintenance is difficult and costly. For example, the new automatic banders

have already been a source of difficulties with maintenance expense averaging

as high as $2,000 per month.

On the basis of operating experience with the present system,

management reported that it would strongly consider installing an overhead

monorail system in future expansions of finishing facilities. This method

would be easier to maintain and would offer more protection for rolls in

transit. The economies possibly achieved through leasing this equipment

rather than purchasing it outright are being explored.

Effect on Plantwide Output Per Man-Hour

Output per man-hour increased 112 percent between 1954 and 1958.

Total output increased by 230 percent during this 4-year period, but total

man-hours increased by 56 percent. The sharpest year-to-year change in

output per man-hour occurred between 1957 and 1958, during which the plant

underwent a major expansion. In addition to the automatic paper roll handling system, one of the world's largest kraft papermaking machines was installed. (See table 28.)

Table 28. Plant C: Indexes of man-hours worked, output,

and output per man-hour, total plant, 1954-58

Year ^ Man-hours output y

Output per

man-hour

1954 .......... 100.0 100.0 100.0

1955 .......... 95.1 107.3 112.8

1956 ....... . 101.3 109.0 107.6

1957 .......... 133.9 170.4 127.3

1958 .......... 156.1 330.1 211.5

1/ Tons of unbleached kraft paper.

Source: Derived from data from plant records.

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Displacement and Reassignment

Since total finishing and shipping department employment had to be

expanded to handle the Increased output, none of the original crew was laid

off. Of the 33 employees in shipping jobs prior to the change, 32 remained

in the department and 1 was transferred to the paper mill 2 months prior to

startup of the new equipment. Most of the 32 employees who remained, however, were promoted to better jobs in the new system according to seniority

provisions in the union agreement. Only 1 out of every 8 of these employees

was working in the same job 1 year after the change. (See table 29.)

Table 29* Plant C: Job status of finishing and shipping department employees

1 year after technological change

Status

Finishing and

shipping (total)

Shipping operations only

Employees Employees

Number Percent Number Percent

Total ..................... 44 100.0 33 100.0

Remained in unit ............. 43 97.7 32 97.0

Assigned same job ......... 9 20.5 4 12.1

Assigned different job ..... 34 77.3 28 84.8

Transferred to another unit .. 1 2.3 1 3.0

Laid off ...................... 0 mm m 0

“

Note: Because of rounding, sums of individual items may not equal

totals.

Source: Plant records.

Downgrading and Upgrading. The expansion in the number of finishing and

shipping jobs resulted in extensive upgrading. Thirty-six out of 44 employees

(82 percent of the total) were upgraded an average of 31 cents an hour. The

remaining eight employees experienced no change in grade. No employee was

downgraded. The eight employees promoted to tour foremen and shipping clerk

jobs also received increases.

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Change in Occupational Structure

Although only slight changes were made in the number and titles of

job classifications used in shipping operations, the content of several jobs

changed significantly. These changes resulted from the use of automatic

equipment to perform certain operations which were done by hand in the former

system, and from the introduction of improved materials handling machinery.

The content of the stenciler and production helper classifications,

for example, was simplified, but not abolished, by the introduction of the

automatic banding machines. One of the duties performed by the stenciler and

production helpers in the old system was to apply, using hand tools, thin

steel bands to each end of the paper roll. In the new system, however, rolls

are automatically transported through banding machines by conveyors, and bands

are applied mechanically.

The duties of the production weigher also changed significantly.

In the old system, the production weigher recorded the weight of the roll

after it had been pushed manually onto a scale, wrote certain information on

the roll, and then pushed the roll off the scale by hand. Under the new

system, the production weigher is now stationed at a control panel located

between the conveyor lines. He controls by pushbutton the movement of conveyors which carry rolls into and out of the weighing stations. His job now

involves surveillance of a wider expanse of the work area. Although information is still recorded and transcribed by hand, all material handling is

accomplished by conveyors.

Table 30 summarizes the net effect of new equipment on the content

of jobs. The decline in the relative importance of recordkeepers and hand

laborers after the change, has been offset by the increase in the proportion

of machine operators and supervisors.

Change in Overall Grade Levels

The introduction of the new materials handling equipment did not

raise the overall skill level (measured by the wage rate) required to perform

shipping jobs. The average hourly wage rate of shipping employees (excluding

the tour foreman who is paid monthly) declined slightly after the change.

(See table 31.)

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Table 30. Plant C: Distribution of shipping occupations,

by job classification, before and after technological change

Job classification

Before change After change

Number Percent Number Percent

Total 1/ .............. 35 100.0 95 100.0

Supervisors .............. 2 5.7 6 6.3

Recordkeepers ............ 4 11.4 8 8.4

Machine operators ........ 5 14.3 25 26.3

Hand laborers........ . 24 68.6 56 58.9

1/ Includes the finishing and shipping department superintendent

and his assistant*

Note) Because of rounding* sums of individual items may not equal

totals*

Source! Derived from data from plant records*

Table 31. Plant C: Average hourly wage rate, and percent distribution of

employees by wage rate, before and after technological change

Before technological change

After technological change

Number of

jobs or

employees 1/

Percent

Number of

jobs or

employees 2/

Percent

Total ............... 33 100.0 89 100.0

$2.50 and over ........ . 4 12.1 16 18.0

$2.40-$2.49 ............ 0 -- 0 —

$2.30-$2.39 ............ 0 -- 0 m

$2.20-$2.29 ............ 0 m 0 m m

$2.10-$2.1 9 ......... . 4 12.1 0 --

$2.00-$2.09 ............ 1 3.0 1 i.i

$1.90-$1.99 ............ 6 18.2 28 31.5

$1.80-SI.89 ............ 12 36.4 16 18.0

$1.70-$1.79 ............ 6 18.2 28 31.5

Average hourly rate .... ... . - i i .962 $1. 923

1/ Excludes the finishing and shipping department superintendent

and his assistant.

2/ Excludes the finishing and shipping department superintendent

and his assistant and 4 tour foremen.

Note: Because of rounding, sums of individual items may not equal

totals.

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Retraining for Changes

Several workers were sent to a school maintained by the equipment

supplier where they received brief formal instruction in maintaining and

operating the new banders. Immediately prior to startup, all workers were

given a brief, informal orientation in operation by company personnel and by

engineers from the equipment suppliers*

The 28 workers in shipping jobs who remained in the unit and were

assigned to different jobs were not formally retrained, since their new

duties were only slightly different from those previously performed. Specific requirements of the new jobs were learned on the job.

Effect of New Jobs on Safety Conditions

A significant result of the installation of the new equipment was

the decline in frequency and severity rates of injuries in the finishing and

shipping department, one of the most hazardous work areas in the mill. Although the absolute number of injuries Increased along with the increased

employment, the relative frequency of sprains, bruises, and other injuries

per employee declined.

Labor-Management Practices Regarding Personnel Adjustments

Management's first step was to give advance notice of the impending

changes to employees affected. Department foremen informally assured them

that no one would be laid off owing to mechanization of shipping operations.

Moreover, it was well known that more workers would be needed to handle the

increased volisne of work, and that those on the job would likely be promoted

to better jobs under seniority provisions of the union agreement. Thus, a

favorable climate existed before the actual personnel changes were made.

The changeover was discussed with union representatives at various

times during the conversion. Suggestions were made by union representatives

not only on labor aspects of the change, but also on methods of improving

operations and installing the new equipment. Company officials adopted

several of these suggestions. The union president reported that these advance

negotiations by the local plant officials contributed to favorable relations

during the changeover.

Practices Regarding Reassignment. Because of expansion in departmental employment, the principal problem of the changeover was assigning the former

finishing and shipping crews to higher paid jobs according to seniority provisions in the union agreement. The provisions stated:

The principles of seniority shall govern in

promotions, layoffs, demotions, filling vacancies,

vacations, transfers and rehiring, provided the

employee has the necessary qualifications, dependability and ability to perform the work properly and

efficiently.

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For the purpose of this agreement there shall be 

three types of seniority* Job seniority* departmental 

seniority* and mill seniority* Job seniority is defined 

as the length of service on a given job within a line of 

progression ... Departmental seniority is defined as 

the length of service in line of progression. Mill seniority is defined as the length of service in the . • . 

mill.

In the consideration of seniority in promotions and

demotions* first preference shall be given job seniority.

Where job seniority is equal, departmental seniority

shall prevail. If job and departmental seniority are

both equal then mill seniority shall determine the promotion or demotion.

Seniority will operate according to lines of progression agreed upon between the local unions and the

mill management. Such lines of progression shall be

subject to change only by mutual agreement of the two

parties.

In filling subsequent vacancies in lines of progression, the senior qualified employee shall be promoted. Should a question arise as to whether or not

the senior employee is qualified* and it cannot be resolved by agreement between the unions and management*

the senior employee will be given a trial period up to

thirty (30) days on the job in question.

Hiring New Workers. Management could, under provisions in the union agreement* 

employ new workers from outside the plant since the capacity of the department 

was increased substantially and experienced help was not available from within 

the mill. The specific provision states:

Should the capacity of the mill or a department of 

the mill be increased it is understood management 

may hire experienced help where necessary.

Applicants for new jobs in the department were interviewed about

3 months prior to startup of the new system. Management sought high-school

graduates with good employment records tfio were under age 30* and in good

physical condition. Preference was given married persons who resided in the

area. Those employed were brought into the department about a week before the

new system was put into operation. Since most of the original workers in the

department had moved into better jobs on the basis of seniority* new employees

were used to fill the lower paid positions.

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Special Problems During Reassignment* Some difficulties concerning seniority

arose during assignment. According to union spokesmen, the "if qualified**

clause in the seniority provisions of the union agreement permitted management to advance some employees into better jobs ahead of those with longer

periods of service. The union also felt that an additional worker was needed

to reduce the workload for the stencilers in the new system.

Establishing Wage Rates. The basis for negotiations over wage rates was a

specific clause in the union agreement as follows:

When major changes are made in the plant which

create new jobs, or substantially change the duties of

existing jobs, the management will meet with the unions

concerned and receive from them their suggestions as to

size of crew and appropriate rates of pay. If after

discussion mutually satisfactory rates cannot be agreed

upon, management will set rates but such rates may be

subject to further negotiations at the next contract

negotiations in a separate discussion from other adjustment requests, and any changes agreed upon at that time

shall be retroactive to the date of the job changes

which occasioned the rate adjustments.

It was agreed to apply the same wage rate after the change to

most jobs because it was assumed that the content would remain substantially

unchanged. The jobs of car bracer and car loader, however, were combined

into a single classification (car loader and bracer), and the rate of the

car bracer, the higher of the two rates, was assigned the new job.

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Appendix A. Tables

Table A-l. Expenditures for new plant and equipment, pulp, paper,

and board mills, 1947-60

Year

Expenditures for new plant and equipment (in millions)

Tot a 1

New structures

and additions

to plant

New machinery

and equipment

1947 ......... 290.6 77.8 212.8

1948 .......... (1/) (1/) (1/)

1949 .......... 212.4 36.8 175.6

1950 ......... 211.6 40.2 171.4

1951 ......... 262.8 46.1 216.7

1952 ......... 274.0 40.9 233.1

1953 ......... 276.3 41.3 235.0

1954 ......... 370.5 83.7 286.8

1955 ......... 388.9 68.7 320.2

1956 .......... 548.5 106.5 442.0

1957 ......... 584.4 98.3 486.1

1958 ......... 424.7 84.7 340.0

1959 ......... 449.8 (1/) (1/)

1960 ......... 391.0 (T/) (1/)

1/ Information not available.

Source: U.S. Department of Commerce, Bureau of the Census

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Table A-2. Capacity, and production of paper and board

as a percent of capacity, 1947*60

Capacity

Production as a

Year percent of capacity Tons (in

thousands)

Index

(1947-100)

1947 ...... 22,025 100.0 95.9

1948 ...... 23,389 106.2 93.6

1949 ...... 25,048 113.7 81.1

1950 ...... 26,059 118.3 93.5

1951 ...... 26,789 121.6 97.2

1952 ...... 27,854 126.5 87.7

1953 ...... 29,089 132.1 91.5

1954 ...... 30,025 136.3 89.5

1955 ...... 30,926 140.4 97.6

1956 ...... 32,579 147.9 96.5

1957 ...... 34,845 158.2 88.0

1958 ...... 36,025 163.6 85.6

1959 ...... 37,504 170.3 90.8

1960 ....... 38,847 176.4 88.7

Source: Capacity--American Paper and Pulp Association, year-end

historic basis. The historical method assumes an annual capacity of 310

days' production-per-year for paper, and an annual capacity of 313 days'

production-per-year for paperboard. Production--Bureau of the Census.

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Table A-3. Indexes of output, production worker man-hours, and output per production worker man-hour

in the pulp, paper, and board industry, 1919-60

/1947=100/

I.SS.I. ....... ~TT ■

Year

Index Index

Output 1/

Production

worker

man-hours

Output per

production

worker

man-hour

Year Output 1/

Production

worker

man-hours

Output per

production

worker

man-hour

1919 ......... 31.7 64.7 49.0 1940 ......... 72.6 63.2 115.0

1920 ......... 36.2 70.6 51.3 1941 ......... 85.6 73.9 115.9

1921 ......... 27.4 53.1 51.5 1942 ......... 83.5 76.5 109.1

1922 ......... 35.1 58.1 60.5 1943 ......... 79.9 81.4 98.1

1923 ......... 39.2 61.0 64.2 1944 ......... 80.0 84.2 95.0

1924 ......... 38.2 57.5 66.5 1945 ......... 81.6 85.4 95.6

1925 ......... 43.3 61.8 70.2 1946 ......... 90.9 92.7 98.0

1926 ......... 46.6 64.9 71.8 1947 ......... 100.0 100.0 100.0

1927 ......... 47.2 62.0 76.1 1948 ......... 104.2 (2/) (2/)

1928 ......... 49.2 61.3 80.2 1949 ......... 96.9 90.8 106.7

1929 ......... 52.8 65.4 80.8 1950 ......... 115.8 97.1 119.3

1930 ......... 49.6 61.0 81.3 1951 ......... 126.2 100.7 125.3

1931 ......... 45.5 48.8 93.1 1952 ......... 120.0 97.0 123.7

1932 ......... 38.7 41.8 92.7 1953 ......... 128.0 103.4 123.8

1933 ......... 43.9 46.3 94.9 1954 ......... 130.5 101.0 129.2

1934 ......... 43.3 48.2 90.0 1955 ......... 146.4 106.4 137.6

1935 ......... 49.9 52.3 95.5 1956 ......... 155.3 107.1 145.0

1936 ......... 56.8 56.9 99.9 1957 ......... 151.2 103.3 146.4

1937 ......... 60.9 60.3 101.1 1958 ......... 151.9 100.9 150.5

1938 ......... 54.3 52.6 103.2 1959 ......... 169.0 105.8 159.7

1939 ......... 64.4 59.0 109.2 3/ 1960 ......... 172.8 103.9 166.3

1/ Weighted average index for production of 24 product classes (since 1947); 8 pulp grades and 16 paper and paperboard categories. This index differs from an unweighted production index based on aggregate tonnage.

2/ Information not available,

3/ Pre1irainary.

Sources: Output based on data from the U.S. Department of Commerce, Bureau of the Census. Employment and hours

based on data from the U.S. Department of Commerce, Bureau of the Census, and the U.S. Department of Labor, Bureau of Labor

Statistics. Data prior to 1936 based on WPA National Research Project study.

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Table A -4. Indexes of output, man-hours, output per man-hour, and unit labor requirements

in the pulp, paper, and board industry, 1939 and 1947-60

71947=100/

Year Output

Production

worker

man-hours

Output per— Labor requirements per unit

Emp loyee Production

worker

Production

worker

man-hour

Employees Production

workers

Production

worker

man-hours

1939 .... 64.4 59.0 (1/) 99.5 109.2 (in 100.5 91.6

1947 ..... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1948 .... 104.2 (in <l/> (in (V) <l/> (in (in

1949 .... 96.9 90.8 100.0 101.9 106.7 100.0 98.1 93.7

1950 .... 115.8 97.1 116.1 118.0 119.3 86.1 84.7 83.9

1 9 5 1 .... 126.2 100.7 120.9 123.7 125.3 82.7 80.8 79.8

1952 .... 120.0 97.0 116.5 120.0 123.7 85.8 83.3 80.8

1953 .... 128.0 103.4 116.7 120.8 123.8 85.7 82.8 80.8

1954 .... 130.5 101.0 119.4 124.2 129.2 83.8 80.5 77 A

1955 .... 146.4 106.4 130.5 135.4 137.6 76.6 73.8 72.7

1956 .... 155.3 107.1 135.5 142.0 145.0 73.8 70.4 69.0

1957 .... 151.2 103.3 132.2 139.4 146.4 75.7 71.8 68.3

1958 .... 151.9 100.9 134.7 142.4 150.5 74.3 70.2 66.4

1959 .... 169.0 105.8 145.7 155.2 159.7 68.6 64.4 62.6

2/ 1960 .... 172.8 103.9 148.3 159.4 166.3 67.4 62.7 60.1

1/ Information not available.

2/ Preliminary.

Sources: Output based on data from the U.S. Department of Commerce, Bureau of the Census. Employment and hours

based on data from the U.S. Department of Commerce, Bureau of the Census; and the U.S. Department of Labor, Bureau of Labor

Statistics.

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Table A-5. Employment in the pulp, paper, and board industry,

1947-60

/Annual average— workers in thousandsT

Year

All

employees

Nonproduction

workers

Production workers

Number

Percent

of all

employees

1947 ....... 234.0 27.1 206.9 88.4

1948 ....... 242.8 30.1 212.7 87.6

1949 ....... 232.6 30.1 202.5 87.1

1950 ....... 245.5 32.0 213.5 87.0

1951 ....... 257.6 35.1 222.5 86.4

1952 ....... 252.8 37.1 215.7 85.3

1953 ....... 258.3 38.7 219.6 85.0

1954 ....... 262.9 40.7 222.2 84.5

1955 ....... 271.2 43.8 227.4 83.8

1956 ....... 278.0 47.6 230.4 82.9

1957 ....... 277.4 48.3 229.1 82.6

1958 ....... 269.4 48.7 220.7 81.9

1959 ....... 273.8 50.7 223.1 81.5

1960 ....... 275.3 52.4 222.9 81.0

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Table A-6. Average weekly hours and average hourly and weekly earnings

of production workers in the pulp, paper, and board industry, 1947-60

/Annual average/

Year

Production workers

Average

weekly

hours

Average

hourly

earnings |

Average

weekly

earnings

1947 ......... 44.2 $1.22 $54.10

1948 ......... 44.0 1.36 59.88

1949 ......... 42.4 1.41 59.83

1950 ......... 43.9 1.48 65.06

1951 ......... 44.4 1.60 71.04

1952 ......... 43.6 1.69 73.68

1953 .......... 44.0 1.79 78.76

1954 ......... 43.5 1.84 80.04

1955 ......... 44.3 1.94 85.94

1956 ......... 44.2 2.06 91.05

1957 ......... 43.4 2.17 94.18

1958 ......... 42.9 2.24 96.10

1959 ......... 43.9 2.34 102.73

1960 ......... 43.4 2.42 105.03

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Table A-7. Employment in the pulp, paper, and board industry, by region, 1947 and 1958

/Workers in thousands/

Census regions 1/

1947 1958

Percent

change Number of

employees 2/

Percent of

total

employment

Number of

employees 2/

Percent of

total

employment

United States ... 197.9 100.0 223.2 100.0 12.8

Northeast .......... 72.1 36.4 71.1 31.9 -1.4

North Central ..... 55.1 27.8 56.2 25.2 1.8

South .............. 54.5 27.5 74.4 33.3 36.5

West ............... 16.2 8.2 21.6 9.7 33.3

1/ The regions in this table are: NORTHEAST--Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, and Pennsylvania; NORTH CENTRAL— Ohio, w

Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, North Dakota, South Dakota, *

Nebraska, and Kansas; SOUTH— Delaware, Maryland, District of Columbia, Virginia, West Virginia,

North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi,

Arkansas, Louisiana, Oklahoma, and Texas; and WEST— Montana, Idaho, Wyoming, Colorado, New Mexico,

Arizona, Utah, Nevada, Washington, Oregon, and California.

2/ Employment data from the Bureau of the Census differs from the BLS series because of

differences in collection methods and other factors.

Note: Because of rounding, suras of individual items may not equal totals.

Source: U.S. Department of Commerce, Bureau of the Census.

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Table A-8. Establishments in the paper and board industry,

by region, 1947 and 1958

Census regions

Number of establishments

Percent change

1947 1958

United States ... 665 1/ 743 11.7

Northeast .......... 333 329 -1.2

North Central ..... 198 219 10.6

S o u t h .............. 94 115 22.3

West ............... 40 80 100.0

1/ 44 establishments were misclassified in 1958 and included in

industry SIC 2661, building paper and board mills, and excluded from industry

SIC 2643, bags, except textile bags. The figures for each region were therefore adjusted downward in proportion to the regional distribution of establishments in industry SIC 2643 in 1958.

Source: U.S. Department of Commerce, Bureau of the Census

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Table A-9. Labor turnover, rates (per 1,000 employees), pulp, paper,

and board industry, 1949-60

/Annual average?

Year

Accession rates Separation rates

Total New hires Total Quits Layoffs

1949 ....... 17 (1/) 22 10 9

1950 ....... 24 (1/) 20 12 4

1951 ....... 28 ?3 28 17 4

1952 ....... 24 20 25 15 4

1953 ....... 24 20 23 14 4

1954 ....... 16 12 16 8 5

1955 ....... 18 14 16 9 4

1956 ....... 18 15 17 10 3

1957 ....... 16 12 19 9 7

1958 ....... 15 9 17 6 8

1959 ....... 18 13 17 8 6

1960 ....... 16 14 18

i______________________

7 7

1/ Information not available on new hires in 1949 or 1950.

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Appendix B. Selected Bibliography

1* U.S. Government Documents

A. U.S. Department of Labor Publications

The Coarse Paper Industry: Capital Requirements and Operating Ratios,

1949 and 1950, Bureau of Labor Statistics Report 24, Washington,

May 1953. 5? pp. Prepared by the University of Pennsylvania,

Wharton School of Finance and Commerce, for Mutual Security Agency,

and Bureau of Labor Statistics.

"Occupations in the Pulp, Paper, and Paper Products Industry,"

Occupational Outlook Handbook, Bureau of Labor Statistics,

Bulletin 1300 (Washington, U.S. Government Printing Office, 1961),

pp. 682-690.

Pulp and Paper Mills: Case Study Data on Productivity and Factory

Performance, Bureau of Labor Statistics, Washington. December 1951.

54" pp. Prepared for the Mutual Security Agency, Productivity and

Technical Assistance Division.

B. Other

U.S. Department of Agriculture, Forest Service. Woodpulp Mills in

the United States by State and Types of Products (Washington,

U.S. Government Printing Office, June 1961). 23 pp.

U.S. Department of Commerce, Business and Defense Services Administration. The U.S. Industrial Outlook for 1961-91 Selected Industries (Washington, U.S. Government Printing Office, 19<>l),

pp. 144-48.

U.S. Department of Commerce, Business and Defense Services Administration. Pulp, Paper, and Board, Annual review issues, March 1961,

and prior years (Washington, U.S. Government Printing Office, 1961).

U.S. Congress, House of Representatives, Committee on Interstate and

Foreign Commerce. Pulp, Paper, and Board Supply-Demand; Report,

85th Cong., 1st sess. (Washington, U.S. Government Printing Office,

1957). 218 pp.

U.S. Congress, Joint Economic Committee, Subcommittee on Economic

Statistics. Measures of Productive Capacity; Hearings, 87th Cong.,

2nd sess. (Washington, U.S. Government Printing Office, 1962).

Statement on measuring capacity in the paper industry by Robert S.

Shultz, 3d, pp. 148-165.

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II. Books and Reports

American Paper and Pulp Association. The Statistics of Paper--1960

(New York, May 1961). 98 pp. See also The Statistics of Paper--

1961 Supplement.

James P. Casey. Pulp and Paper--Chemistry and Technology, 2d ed.,

3 vols. Pulping and bleaching, Papermaking, Paper testing and

converting (New York, Interscience Publishers, Inc., 1960).

John A. Guthrie. The Economics of Pulp and Paper (Pullman, Washington,

The State College o£ Washington"Press, 1950). 194 pp.

John A. Guthrie and George R. Armstrong. T h e Pulp and Paper Industry,"

Western Forest Industry: An Economic Outlook. Published for Resources

for the Future, Inc. (Baltimore, Johns Hopkins Press, 1961), pp. 95-

123.

International Brotherhood of Pulp, Sulphite and Paper Mill Workers.

Report of the Proceedings of the 25th Convention, Montreal, Canada,

August 3l-September 4, 1^59 (Fort Edward, N.Y., 1959). 288 pp.

Clark Kerr and Roger Randall. Causes of Industrial Peace, Case Study

No. 1, Crown Zellerbach Corp., and the Pacific Coast Pulp and Paper

Industry (Washington, National Planning Association, 1948). 78 pp.

David L. Luke. "Pulp and Paper," American Enterprise? The Next Ten

Years, Martin R. Gainsbrugh, editor (New York, The Macmillan Co.,

I95TT, pp. 217-222.

Robert M. Macdonald. "Pulp and Paper," The Evolution of Wage Structure

by Lloyd G. Reynolds and Cynthia H. Taft (New Haven, Yale University

Press, 1956), pp. 99-166.

John J. McMahon and Arnold Berman. Radioisotopes in Industry (New York, 

National Industrial Conference Board, Inc., 1959), pp. ?7-82.

Organization for European Economic Cooperation. The Pulp and Paper

Industry in the U.S.A. (Paris, 1951). 378 pp.

The Progress of Paper (New York, The Lockwood Trade Journal Co., Inc.,

" 1947). 392 pp.

J. Newell Stephenson, editor. Pulp and Paper Manufacture, 4 vols.

(New York, McGraw-Hill Book Co., 1950-1955). ~

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United Papermakers and Paperworkers. Proceedings of the 2d Constitutional

Convention, Washington, D.C., September 19-23, 1960 (Albany, N.Y., I960).

346 pp.

George S. Witham. Modern Pulp and Papermaking, 3d ed., revised and

edited by John B.Caikin (New York, Reinhold Publishing Corp., 1957).

549 pp.

Wood Pulp Statistic8--26th Edition (New York, United States Pulp Producers

Association, Inc., August 1961). 255 pp.

III. Periodicals and Articles

A. Periodicals

The Paper Industry, Fritz Publications, Inc., Chicago (Monthly).

Paper Mill News, L. D. Post, Inc., Philadelphia (Weekly).

Paper Trade Journal, Lockwood Trade Journal Co., Inc., New York

(Weekly).

Pulp, Paper, and Board, U.S. Department of Commerce, Business and

Defense Services Administration (Washington, U.S. Government

Printing Office, Quarterly).

Southern Pulp and Paper Manufacture, E. A. Abernethy Publishing

Co., Inc., Atlanta, Ga. (Monthly).

Tappl, Technical Association of the Pulp and Paper Industry, Easton, 

Pa. (Monthly).

B. Articles

George W. Brooks and Sara Gamm. "The Practice of Seniority in Southern

Pulp Mills.1* Monthly Labor Review. July 1955, pp. 757-765.

**Computers Enter Paper Industry," Chemical and Engineering News,

American Chemical Society, Washington, November 20, 1961, pp. 58-60.

Lee Eberhardt. "Economic Impact of New Processes on the Pulp and

Paper Industry," The Paper Industry, Fritz Publications, Inc.,

Chicago, March 1958, pp. 982-983 ff.

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Charles W. Heckroth. "Significant for the Sixties," Paper Mill News,

L. D. Post, Inc,, Philadelphia, December 26, 1960, pp. 29-30,

Helen Hunter. "Innovation, Competition, and Locational Changes in

the Pulp and Paper Industry: 1880-1950." Land Economics

(Madison, University of Wisconsin, November 1955), pp. 314-327.

Stephen S. Livers. "Taking the Art Out of Papermaking," Control

Engineering, McGraw-Hill Publishing Co.. New York, December 1961,

pp. 20, 21.

John 0. McCutcheon. "Continuous Pulping," Paper Mill News,

Philadelphia, March 28, 1960, pp. 46 ff.

Paul L. Phillips. "Automation in Pulp and Paper," I.U.D. Digest,

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* U.S. G O V ER N M E N T P R IN T IN G O F F IC E : 1962 0 — 661934

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