3. Continue to work out understandings with other manpower agencies as to their manpower responsibilities in relation to the Department of Labor's responsibilities.

4. Plan with all Federal agencies for systematic methods to determine priorities and allocate manpower.

5. Develop procedures for translating survival and production urgencies into manpower priorities to be used as guides for allocating available workers.

6. Assess manpower requirements of Federal agencies.

7. Continue to develop procedures for insuring maximum cooperation with labor and management in dealing with manpower problems during emergencies.

B. WAGE AND SALARY STABILIZATION

The Department of Labor, pursuant to its delegated responsibilities, performed work in the area of wage and salary stabilization as indicated below. Existing interim wage and salary stabilization regulations for use in a general war situation were revised on the basis of suggestions received and a review of problem areas which arose during past stabilization programs. The revised regulations are awaiting approval at the departmental level.

Drafts of wage and salary stabilization regulations considered necessary to immediately implement a wage freeze order in a limited war emergency were developed. These draft regulations are being circulated for final approval.

An enforcement procedural regulation has been drafted and approved, setting forth the procedures to be followed by enforcement commissions in the holding of hearings resulting from alleged violations of a wage freeze order or regulations and orders issued by the Wage and Salary Stabilization Boards.

A proposed wage stabilization and labor disputes organizational structure has been drafted for the administration of wage and salary stabilization and labor disputes programs in a limited war emergency.

Work was started on a wage stabilization manual which will contain all preand post-attack wage and salary stabilization material.

Upon request, officials attended selected meetings of State agencies which would administer emergency price and rent controls to coordinate their emergency program planning with Federal planning for the administration of wage and salary controls. This is a continuing program. Basic orientation in the program was provided to 109 new employees of the national and regional offices who have been assigned wage and salary stabilization duties and responsibilities in an emergency. The "inservice" training program for designated field employees and executive reservists, consisting primarily of exercises in applying interpretative and wage data material to specific test problem situations, was continued.

C. WORKER INCENTIVES AND PROTECTION

The Department of Labor has fulfilled its assigned responsibility to develop plans and procedures for wage and salary compensation and death and disability benefits for authorized civil defense workers. These proposals still await policy decisions by the Office of Emergency Planning and the Office of Civil Defense. When such decisions are made, the Department will issue regulations implementing the program.

A proposal dealing with reemployment rights for use in case of emergency has been developed and approved by the National Labor-Management Manpower Policy Committee. It now is ready for use when needed. A program for making unemployment compensation payments in an emergency situation has been completed.

D. RESOURCES

Skill shortages.-The Department of Labor, through its U.S. Employment Service and the associated State employment services, maintains the capability to assess manpower resources for regular economic requirements. Among the steps taken to insure discharge of this responsibility, the Department established a special task force to review present methods, to recommend improvements, and to produce all necessary data on manpower shortages.

The Department of Labor has many programs in being which are designed to inform us which occupations are critical, which are in short supply, where they are located geographically and industrially, the number of apprentices in training, how many workers are needed, where labor surpluses and shortages exist,

what training facilities are available, and the ability to transmit this information to any point necessary. In an emergency this work would continue, limited only by communications failure. Each of the State employment services has prepared a manpower resource plan designed to enable each manpower agency to work harmoniously with the Office of Emergency Planning, the Office of Civil Defense, and the other managers of resources. These plans have been tried out in cooperation with all resource plans in a number of States. Further trials will continue this year.

The Department, through its Manpower Administration, conducts a continuing survey of skill shortages through a monthly report submitted by the 2,200 local employment offices. Supplementing this statistical device are numerous special studies of specific industries. Recently, OEP has furnished extensive data on the number of critical skills in every county in the United States.

State Manpower Resource Planning.-State employment services are well along in developing their manpower chapters of the OEP Emergency Resource Management Plans. Regional manpower coordinators assisted them with advice and materials. Interim drafts have been completed by 48 States. After review by the regional administrators and national headquarters, final drafts were completed by 25 States. The remainder should be finished during the next 3 months.

E. REQUIREMENTS

The Department is developing procedures and the necessary data, both current and projected, to permit making rapid estimates of manpower requirements by occupational skill and industry. These are in a form to permit use in the electronic computer based economic models as they are being developed by the National Resource Analysis Center, OEP. These models are under development for both limited and general war. To date, the manpower productivity factors and the necessary occupational data have been completed. A major test of the capability of the manpower segment of the OEP-NRAC national "strength" economic model was carried out in fiscal year 1967. An estimate was made of the manpower requirements by industry and detailed occupations directly and indirectly generated by Department of Defense expenditures for fiscal year 1966.

F. SKILL DEVELOPMENT AND TRAINING

Different types of manpower problems occur in different types of emergencies. Some skill shortages can, however, be anticipated in any emergency. To meet present and prospective shortages of skilled manpower, the Department of Labor is increasing as much as possible its training for shortage skills under the Manpower Development and Training Act and its programs to promote effective utilization of manpower. We also are updating the lists of such occupations; cooperating with the Department of Health, Education, and Welfare to produce workable plans to train health personnel for emergency needs; studying convertibility of jobs, transfer of skills and reduction of highly technical jobs to more easily learned components; and developing expedited procedures for the training of needed workers in emergency situations.

In addition to the currently ongoing training, several plans have been adopted to assist in meeting emergency training needs. One important activity is an updated list of occupations that are chronically in short supply and are critical to the needs of the economy and defense. These lists must be and are kept current through a continuous report from the 2,200 local State employment services.

G. LABOR-MANAGEMENT RELATIONS

The National Labor-Management Manpower Policy Committee is an important policymaking and advisory group designed to assist in manpower utilization in emergency conditions. Its underlying purpose is to guide, to advise, and to win group acceptance on questions of policy relative to the mobilization, training, and maximum utilization of manpower in a national emergency, and to make recommendations as to the action which in its judgment should be taken.

World War II showed the positive need for cooperation of all segments of the population when the Nation is striving to meet its manpower and production needs. Out of this experience was developed the concept of a national labormanagement committee, regional labor-management committees, and local labormanagement committees. These committees are composed of persons representing labor, management, agriculture, and the public. No volunteer manpower plan

can work without the help of such committees and, even more true, no controlled manpower program can succeed without their support.

In accordance with Executive Order 11000, a committee composed of representatives of the Department of Labor, the Federal Mediation and Conciliation Service, the National Labor Relations Board, the Department of Commerce, the Department of Defense, and the Civil Service Commission held a series of meetings to assist the Department of Labor in preparing a plan for the maintenance of effective labor-management relations in an emergency.

The Federal Mediation and Conciliation Service, the National Labor Relations Board, and the National Mediation Board presented position papers outlining the role of each respective agency in an emergency. These papers were reviewed and discussed at meetings of the committee. As an additional aid in planning, comments also were solicited from the public, labor, and management members of the Department of Labor's executive reserve at regional meetings of the reservists. As a result, a proposal for maintaining effective labor-management relations in an emergency now is being developed.

H. DAMAGE ASSESSMENT AND RESEARCH

The effectiveness of emergency manpower operations will, to a great extent, depend on the speed with which the availability of manpower can be analyzed for policymaking purposes.

Our program objective in this area has been to develop and to maintain essential data on the current and future relationships between available resources and the requirements that could be, or have been, generated by situations of international tension, limited war, or general war. To do this, we have developed procedures and techniques to prepare data to permit making rapid estimates of manpower by detailed occupational skills available, by geographic location, in a current period, and after an attack. Data include preattack labor force and potential labor force for both daytime and nighttime.

At present, the Department of Labor has programed for the National Resource Analysis Center computer facility manpower data for 353 geographical units, including all metropolitan areas and a variety of special counties, territories, and other areas, the District of Columbia, and the 50 States. For each area, we have 108 manpower items. These include 75 detailed occupations considered essential for civil defense and recovery efforts, 11 broad occupational groupings, as, for example, professional workers and skilled workers, and employment in 21 manufacturing industries. Using the NRAC attack models, these data make it possible to estimate the availability of workers in the various occupations after an attack for each of the various areas.

Sets of employment estimates for 1958 and 1963 and a set of industry-occupation distribution patterns for 1963 were prepared for use by a new "strength" economic model now being developed for use by the Office of Emergency Planning. These will permit the economic model to estimate employment and occupational requirements for the economy in a limited war situation.

A set of productivity factors also was prepared for the "strength" model to permit evaluating manpower requirements of the economy for the years from 1966 to 1970.

At the local level, particularly after an attack when presumably communications would be meager or nonexistent, damage assessment is a firsthand, personal procedure. Instructions as to ways and means to determine destruction of manpower and remaining manpower have been incorporated in the manuals of operation provided to all local State employment security offices. These procedures were added to by means of a program of cooperation between the Business and Defense Services Administration and the Department of Labor. In brief, the program is a series of activities utilizing the facilities of the State employment security agencies' computers to obtain manpower and production information in a postattack situation.

I. CRITICAL OCCUPATIONS

Executive Order 11000 requires the Department of Labor to develop and to maintain a list of critical occupations. The Secretary of Labor, in cooperation with the Secretary of Defense, the Director of Selective Service System, and such other persons as the President may designate, is required by this order to develop policies applicable to the deferment of registrants whose employment in occupa

tions or activities is necessary to the maintenance of the national health, safety, or interest.

Recent legislation modified selective service draft regulations by transferring the responsibility respecting critical occupations to the National Security Council. Consultations among various agencies are going on now to determine how best to administer the provisions embodied in this recent draft legislation.

J. INTERAGENCY COOPERATION

Coordination of the Department of Labor's manpower programs for meeting emergencies with the programs of other agencies dealing with manpower continued throughout the year. These agencies include the Department of Defense; Department of Commerce (Maritime Administration); Department of Health, Education, and Welfare; Selective Service System; Railroad Retirement Board; Civil Service Commission; National Science Foundation; National Labor Relations Board; Federal Mediation and Conciliation Service; and the National Mediation Board. Particular effort was directed during fiscal year 1967 to developing formal program objectives among these agencies to avoid overlapping efforts. In addition, there are a number of continuing committees which enable us to maintain close relationships with other Government agencies involved in manpower and wage stabilization problems. These include our chairmanship of the Committee on Specialized Personnel and the Interagency Advisory Committee on Essential Activities and Critical Occupations, and cochairmanship of the National Labor-Management Manpower Policy Committee. The Department continues to be represented on the Interagency Emergency Planning Committee, Interagency Committee on the National Defense Executive Reserve, Interagency Civil Defense Committee, and the Emergency Preparedness Research Committee. In addition, the Department is represented on the OEP regional preparedness committees and the OCD regional civil defense coordinating boards.

K. CONTINUITY OF GOVERNMENT

The Department has kept up-to-date documents covering lines of succession, national and regional office emergency cadres, alerting systems, and responses to emergency warnings. All necessary materials related to the above have been pre-positioned at relocation sites.

In addition, the Department has developed programs to facilitate conversion to emergency duties under the diverse conditions of limited war and general war by (1) identifying the essential and nonessential functions for each of the contingencies; (2) providing for the maximum use of the capabilities, personnel, and resources of existing bureaus and offices within the Department; (3) keeping up-to-date the emergency organization with emergency functions described for each component of the organization; (4) selecting and assigning personnel, including executive reservists, so that each person's role will be clear; (5) training personnel, including executive reservists, in their emergency assignments; and (6) incident to training, testing personnel.

L. EXECUTIVE RESERVE PROGRAM

In carrying out emergency preparedness responsibilities assigned to it, the Department of Labor is a participant in the National Defense Executive Reserve program which was authorized by the Defense Production Act of 1950, as amended, and Executive Order 11179. The program is administered by the Office of Emergency Planning.

The National Defense Executive Reserve unit in the Department of Labor consists of 95 active members and 6 emeritus members. These reservists are persons with executive ability who are selected from fields of business, labor, education, and certain professions. To insure an adequate reservoir of qualified executives, the Secretary of Labor is now in the process of appointing some 80 new members.

The reservists are assigned to the Department's offices at the national level and in the regions. These assignments cover specific emergency mobilization functions to administer programs for (1) wage and salary stabilization; (2) maintenance of effective labor-management relations; and (3) maximum utilization of civilian manpower resources, including recruitment, selection, referral, training, and allocation.

Under the auspices of the Office of Emergency Planning, from September 1966 through May 1967, the executive reservists participated in OEP briefing and

Department of Labor training sessions which were held in each of the eight OEPdesignated regions. In these training sessions, there were general discussions on their assignments and current mobilization planning developments. The Department's Mobilization Planning Coordinator and the regional directors also solicited the opinions and advice of the reservists concerning mobilization planning.

The training sessions are valuable and are an effective means of keeping the reservists informed of recent developments and procedures in the mobilization area. In addition, during the course of the year, the Deputy Under Secretary of Labor and the bureau mobilization coordinators in the national office and the regional directors in the field keep in touch with the reservists concerning developments in defense readiness programs.

This fall, the Office of Emergency Planning is sponsoring a national conference of the National Defense Executive Reserve in Washington, D.C.

CURRENT NEED FOR PROGRAM

The responsibilities assigned to the Department of Labor are an essential element in the Government's overall planning for emergency readiness. The two major responsibilities of the Department-planning for civilian manpower mobilization and for wage stabilization in an emergency--are necessary to the survival of the Nation in the event of a nuclear war. Manpower is the vital component of any productive system. Wage stabilization is a key part of economic stabilization during emergency conditions.

The Department's mobilization planning programs are designed to develop at the local level maximum readiness for efficient utilization of manpower and enforcement of wage stabilization provisions, when needed. The importance of ready-to-use measures and supporting statistical materials in the event of a national emergency cannot be overemphasized.