Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
INSURANCE PLANS
TO AID IDLE GROW
Guaranteed Employment Pro-
posaI Watched by Leaders
in u. S. Industry.
BY RoLLrN M. CLARK.


With more than 30 plans in force In
this country to furnish unemployment
benefits or employment guarantees, as
disclosed by q survey Just published by
the Bureau OF Labor statistics, 1t can
hardly be said that the United States
Is not experimenting with unemploy-
ment insurance. These systems are all
private or voluntary, representing the
effort of industry and labor to solve
q problem that 10 foreign nations have
met with public control or authority
over state insurance or doleS.
The American plans divide them
selves into three broad general classes
the company type, enlargement
plans and trade union plans. The COM
pany systems number IS and cover
about 10000 employees, but OF these
only $4,000 were eligible for benefits
in April when the survey was made.
commencement plans now total 10.
They were created by joint action Of
employers and trade unions and now
cover IS 900 workers. The third type
Of plan, operated by labor itself, Is
found in approximately so separate In
stances, but covers the least number Of
employees, $4,000.
whole City In Plan
The most significant of the American
systems to date Is found in Rochester,
N. Y. It contemplates the sterilization
Of employment in the entire city in
stead of in one company or trade.
Fourteen manufacturing companies,
which employ about one-tlird Of the
city's industrial employees are grouped
in this venture. In normal times the
employers finance the entire plan
through a reserve fund built up by Q
per cent of their pay rolls. In emer-
genctes, however. the reserve fund is
expanded by contributions Of employees
and ofacials, representing ! per cent OF
their salaries or wages. This sum II
matched by the companies.
Benefits are paid to employees with ct
least O years service, provided they are
earning less than $50 o week. Maxi
mum payments to them when out OF
work are $3.50 q week and in no case
more than so per cent Of the average
weekly earnings. Benefits are payable
for 6 to Is weeks. depending upon
length Of service.
A company plan which seems to be
gaining important recognition Is that
Of large soap manufacturing company
OF Cincinnati This firm guarantees its
employees 40 weeks Of work O year at
full pay. While 1t Is limited TO persons
who have had at least six months
service and who have subscribed for .
specified amount OF the company's
stock, almost 100 per cent Of those
eligible to participate have come into
the plan.
Forward Step.
1t Is this plan which is the basis Of
the proposal Just advanced by the
Chamber of Commerce Of the United
States for guaranteeing employment in
the major industries Of the country.
The theory underlying the chambers
plan is that It will remove the uncer-
tainty which has undoubtedly kept
many persons from making needed pur-
chases, even while employed. In this
way purchasing power viii be main
tanned and business ultimately should
show substantial gains.
The success of the plan, OF course.
VIII rest upon the manner in which 1t
Is received by industry. Action on the
proposal would be voluntary, presumably
through national trade associations af-
filiated with the National Chamber. It
would seem, however, that Q specified
number Of workers could be guaranteed
employment under the plan, and this
unquestionably would be . forward
stem.
(Copyright, 1917