Los Angeles herald., 1910-01-18
LABOR BENEFIT
FUNDS INCREASE
BUREAU REPORT CONTAINS RE-
suit OF INVESTIGATION
MANNER OF EXTENDING AID
VARIES GREATLY
Number of National Organizations
Grows from Twenty in 1881 to
More Than 1925 in
1907

death or other adversely and the ten
dency of employers to assist in the
support of such funds and to grant
pensions to superannuated and dis
abled employees are shown in the twen-
ty-third annual report of the commits
sioner of labor, just published. In con-
nection with this report about 100 such
funds were investigated by the bureau
of labor.
The two kinds of benefits most fire.
quently found in operation are the
death benefit and the temporary dis
ability benefit The death benefit in the
greater number of the funds is de-
signed to be an amount only sufficient
to pay funeral expenses. Some funds,
however, offer q life insurance of a
considerable sum. The temporary dis
ability benefit is intended to compen-
safe in part for the loss of wages oc-
casioned by sickness or accident. The
continuance of this benefit almost al
ways is limited to a definite period.
Frequently no benefit is paid for the
first few days of a disability due to
sickness, and in many funds a certain
length Of membership is required be-
fore benefits are given.
number of funds pay a perma-
nent disability benefit, designed to
provide for a member who becomes to-
tally incapicitated, or who suffers the
loss of eyesight or of some part of his
body. The approximation benefit for
members incapacitated by age is not
developed as yet to any great extent,
but appears to be increasing in favor.
Quite a number of funds pay a bene-
fit on the death of the wife of a mem
Der or of some other dependent.
National Labor Benefit Funds
In 1881 there were about twenty ma
or intnrna fiOnol la hOr MIA -
tions in the United States; in 1907
there were 125 or more. While collec-
tive bargaining is the feature of labor
organizations that most often comes to
public attention, the report shows the
benefit or relief feature to be one of
great magnitude in many labor bodies.
Since the formation of national unions
followed that of local unions, the pay
ment of benefits by national unions
did not begin SO early as in the local
unions In the majority of the early
national trade unions benefit features
were not instituted until many years
after such national unions We're or
ganized, while in many Of the national
unions organized since 1880 benefit
features were instituted either at the
time of organization or shortly after
ward.
The report covers "a national labor
Organization benefit funds, all of which
pay death benefits The amount of the
death benefit varies widely, ranging
from as low as $15 to as high as $4500
The amount occurring more often thar
any other is $780, About one-half OF
the organizations pay varying
amounts, according to class and length
of membership.
Nineteen of the organizations pay
temporary disability benefits. The
benefits are small, there being only
two instances in which they exceed
Sc per week. One-fourth of the organ
izations pay permanent disability bene-
fits, usually varying according to the
nature of the disability.
Four national unions have superan-
nuation benefits in operation, and five
others have this benefit instituted but
not yet operative. Seven organizations
pay benefits on the death of mem
bers' wives. Other forms of benefits
paid in few instances are shipwreck
unemployment, and tool insurance.
Local Labor Benefit Funds
The report covers $50 local labor or
ganization funds, representing about
80 trades, paying benefits to members
Many other locals paying benefits were
not canVassed. In some few organiza-
tions members receive benefits from
both their national and local bodies
VI Inc OOU lOCtjl uLlOIlS investigated
SAG pay temporary disability benefits
401 pay benefits on account of death
of members, sc on death of members
wives, and 40 on death of other de-
pendents; 10 pay unemployment bene-
fits, and 10 pay permanent disability
benefits.
A few of the locals of the more
highly paid occupations pay temper.
airy disability benefit as high as $40 OF
SIX Wanly yUht1n Of
as 81 or So per week. The rate most
frequently reported is S. per week. The
average length of disability paid fol
per member of the funds was about
two and one-half days. The average
period of disability paid for per bene.
flciary was 27 1-2 days, and the average
payment per beneficiary was so cents
per day of disability. About per cent
of the members received benefits some
time during the year.
The lump-Sum death benefits mos
frequently paid are $100, $75 and $50
Another frequent death benefit is the
amount obtained by assessment of $.
per member. "A number of unions pay
much larger amounts The average
amount paid per death in the loca
union funds investigated was $116SS
The predominating benefit paid on tn,
death of members wife is $50.
Railroad Relief Funds
Information in regard to fifty rail
road funds is included in the report. o.
these, fourteen are pension system.
maintained entirely by the employins
companies. Pensions are as a rule
based on age and length of service
usually on the basis of 1 per cent fol
each year of service of the average pay
for the ten years next preceding re-
tirement. In most of the systems pen.
sions for superannuation are granted
to employees retired at 65 or 70 years o.
age, after from ten to thirty years o.
service, and for incapacity to EN-
ployes 60 to 50 years of age.
Employees contribute all or a large
part of the revenues of the remaining
thirty-six funds investigated, eigh
only being contributed to by the com
panies involved. One company con
tributes so per cent of the revenue, ant
the remaining seven amounts varying
from 20 per cent to less than l pei
cent of the amount contributed by the
employes. In these eight funds there
are provisions for relieving the funds
from all claims for benefits if a sui
for damages is brought against the
company. Thirty-one of these thirty.
six funds pay benefits for temporary
disability, ranging from $3.50 to 500 pei
week. Thirty-four pay death benefits
the aver ge payment per death having
been $5SS Several of these funds pay
benefits in cases of permanent dis