FORMS FOR PLAN DESCRIPTIONS AND ANNUAL REPORTS To assist administrators' the law authorized the Secretary of Labor to prepare and make available forms for the plan descriptions and the annual reports to be used at the discretion of those filing. This we have done. The description form was completed and distributed nationwide before January 1, so that administrators would not be delayed in preparing their submissions. The annual report form has been completed and is being distributed. In developing these forms we consulted extensively with the groups most vitally concerned, management officials, insurance carriers, bankers, and accountants, labor organizations, and State insurance commissioners. These discussions were most helpful because the law covers a very broad, complex, and technical area. However, since many of these plans, and the reporting requirements, are so complicated we have received hundreds of inquiries seeking information. We anticipate a continued flow of such requests, especially during the first year of the law's operation. As you know, the primary purpose of the act is to provide for the disclosure of significant information about welfare and pension plans. The law thus requires me to make the reports available for examination in a public document room of the Department of Labor. Such a document room has been established. The uncertainties which exist as to the actual number of reports that will be submitted to us likewise applies as well to the extent to which beneficiaries, or the public generally, will ask to look at or obtain copies of the plans on file. We anticipate, however, that there will be a keen interest in the documents and data in our possession. Because of the widespread effects of these plans on our economy, the magnitude of the financial transactions involved in them and their prominence in industrial relations, we expect that the Congress, business, and labor organizations and the public generally, will want statistical information on the major characteristics of the plans filed with us and the Department proposes to process the information received in such a way that it will readily lend itself to statistical compilations. The responsibility for administering the many facets of this new program has been placed in the Bureau of Labor Standards. PROGRAM PROGRESS Senator HILL. Mr. Secretary, as you have stated, that is a new program, so to speak, enacted at the end of the last session of Congress. Up to date have you found this moving along satisfactorily? Are you having much difficulty with the program? Secretary MITCHELL. The number of plans which have been filed have been, up to this point, lower than we had anticipated. We have had somewhere between 135,000 and 150,000 plans filed. We believe that many have failed to file because of ignorance or for other reasons. The plans are now coming in and, beginning May 1, there will be required, in addition to the initial filing, an annual report, and the complexities of that we still have not yet wrestled with. It is still in the formative state. One problem we see is that this law, as passed by Congress, is primarily a self-policing or self-enforcing law. The initial responsibility for determining whether he has to file under the law or not remains with the administrator and he may do so. So we believe that there are a sizable number of administrators who have not yet filed and who are in effect in violation of the law. Senator HAYDEN. My recollection was at the time this bill was under discussion there was supposed to be about $30 billion in these various funds of which $5 billion were labor organizations and the other $25 billion employers; is that about right? Secretary MITCHELL. That is about right. We still have to rest on that estimate. We have done nothing so far in the compilation of data. We have not compiled that data yet; we are just receiving funds. Senator HAYDEN. If the labor organizations or employers decide they are not going to do anything about it, what can you do? Secretary MITCHELL. Nothing, unless willful refusal to file is encountered. This, of course, was the weakness of the bill, as we saw it. Senator HAYDEN. It was not that way when it passed the Senate? Secretary MITCHELL. No, sir; I know that. Senator HILL. No, it was not that way when it passed the Senate. You know what happened to it, Mr. Secretary. Secretary MITCHELL. Yes, sir; very well. Senator CHAVEZ. We did not recognize it after they got through. Secretary MITCHELL. As you know, we supported the Senate version of the bill and hoped that that would pass. Senator HILL. I recall well that you did. I wondered what the effect of the change was that was made after it left the Senate. That is the reason I asked my question. Secretary MITCHELL. The effect really is to have left the bill in a state where, as I said, it is self-policing, self-enforcing, and we have no way of knowing whether all of the administrators have filed and we have no way of forcing them to file. LEGISLATIVE RECOMMENDATIONS CONTEMPLATED Senator HAYDEN. When you get through with the first year's work on this, you will be able to advise the Congress about who did comply and who did not? Secretary MITCHELL. We hope so, sir. We expect within the next couple of weeks, based on our experience so far with this, to make certain legislative recommendations to the Congress which, of course, would be for the purpose of strengthening the bill. As you will recall, when the President signed the bill last year, he pointed out many weaknesses and said that he would submit legislation this year, which will be done. Senator HILL. He cited this very thing, did he not? Senator HILL. I am sure he did. LONGSHORE AND SHIP REPAIR SAFETY Secretary MITCHELL. Congress also passed late in the last session amendments to the Longshoremen's and Harbor Workers' Compen sation Act, Public Law 85-742, dealing with the safety of workers covered under this act. To discharge our responsibilities under the law, we have submitted a supplemental appropriation estimate of $240,000 for the fiscal year 1959 which has been approved by the House and by the Senate Committee on Appropriations. To place this supplemental on an annual basis for 1960 an additional amount of $417,000 will be required. As you gentlemen know, longshore work is hazardous and many accidents, killing and maiming workers, have occurred over the years. As a matter of fact, the accident frequency rate in this industry is about eight times that experienced in manufacturing. Although accidents are relatively less frequent for ship repair workers, our information indicates that the rate of disabling injuries in this activity is also well above most industries. Since the workers in these industries, subject to Federal law, did not come within the jurisdiction of State safety codes, and were thus completely unprotected, the Congress acted to close this unfortunate gap. Under the amended law the Secretary of Labor is authorized to develop, put into effect, and enforce safety regulations designed to reduce the likelihood of crippling accidents and fatalities. We have proceeded to draft tentative safety codes; those for ship repair activities have already been distributed to the industry and unions for their review. A draft of the longshore code is virtually completed. To assist employers to comply with the safety requirements, as well as to enforce the provisions, inspectors will be stationed at some 17 principal ports along the Atlantic, gulf, and Pacific coasts. Smaller ports will be visited periodically. Inasmuch as the number of vessels loading or unloading cargo in American ports runs into the thousands annually, our inspectional tasks will be substantial. These responsibilities, as well as the safety training and consulative activities which the law also authorizes, will be discharged by the Bureau of Labor Standards. This concludes my statement. I will be glad to answer any questions the committee may have. ESTIMATE OF GRANTS TO STATES Senator HILL. Mr. Secretary, let me ask you this: I believe you had $325,600,000 for grants to States for unemployment compensation and employment service administration; is that correct? Secretary MITCHELL. I believe so. Senator HILL. That was estimated to be sufficient to handle a load of 2,700,000 insured unemployment. In the year to date it has averaged only, I believe, 2.1 million. This estimate this year is based on 2.3 million; is that right? Secretary MITCHELL. 2,100,000. Senator HILL. I am seeking the estimate for the fiscal year 1960, what is that based on? Secretary MITCHELL. 2.1 million. Senator HILL. 2.1 million for this year? Secretary MITCHELL. Our current estimate for fiscal 1959, which is the fiscal year we are now in, is 2.3 million. We are estimating 2.1 million for the next fiscal year, 1960. Senator HILL. For the present fiscal year 1959, what was your estimate? Secretary MITCHELL. 2.3 million is our estimate. Senator HILL. That is your estimate now, is it not, or is that your estimate for the present fiscal year? Secretary MITCHELL. If you may recall, and Mr. Dodson can supplement this, our original estimate as you correctly stated, was 2.9 million. There was some discussion in the House and in the Senate on that estimate. In conference, I believe, another figure was arrived at and there was a general agreement that that estimate was too high and there was a lower estimate arrived at. That lower estimate was, as I recall, 2.2 million. That is the basis on which we have been operating. Mr. DODSON. That is correct. Senator HILL. Now, your estimate for the next fiscal year, for which we are now appropriating, 1960, is how much? Mr. DODSON. 2.1 million. Secretary MITCHELL. I might point out since the time we prepared this estimate, which involves a long process of consultation with the States, the unemployment picture has looked so much better that the original estimate could well be reduced we believe to 2 million, rather than 2.1 million. For example, I say in my prepared statement that our nonagricultural placements would be 5,493,000 employment placements for fiscal year 1960. If the number of placements were to continue at the current rate of March, our nonagricultural placements would run 61⁄2 million instead of 5.4 million. As the claims load reduces, the employment service activity increases which, of course, we believe is a healthy situation anyway. Senator HILL. And the least expensive. Mr. MITCHELL. Mr. Dodson points out that some of our people on the basis of current activity believe the claims load might get down to 1.8 million. I would be perhaps a little conservative and say 2 million. Senator HILL. Do you think we might have a surplus then in these funds? Secretary MITCHELL. We might; yes, sir. Mr. Dodson points out that we may have $10 million unexpended of this year's appropriation. Senator HILL. You have $10 million this year? Secretary MITCHELL. Yes, sir. OFFICE OF THE SECRETARY SALARIES AND EXPENSES APPROPRIATION ESTIMATE "For expenses necessary for the Office of the Secretary of Labor (hereafter in this title referred to as the Secretary), including payment in advance when authorized by the Secretary for dues or fees for library membership in organizations whose publications are available to members only or to members at a price lower than to the general public; and purchase of uniforms or allowances therefor, as authorized by the Act of September 1, 1954, as amended (5 U.S.C. 2131); [$1,478,000] $1,621,000, of which not more than [$213,000] |