Since the organization of United Steel the proportion of the sales dollar provided for employees had an upward trend until the 1930's. Since then the employment costs have ranged from approximately 40 to 50 cents of the sales dollar. In 1902 employment costs were less than 30 cents out of each dollar of sales. They increased to a high of 51 cents in 1934-a year of low volume-and currently are about 41 cents. In the same interval, the decline in income per dollar of sales has been greater than the increase in the portion of the sales dollar going to or for employees. CENTS EXHIBIT S-242 CHART 13.-Employment costs and income per production man-hour, United Italics denote red figures. 1 Includes all man-hours except those worked by employees engaged in activities such as new construction, etc. This portrayal, on a production man-hour basis, of the relative amounts provided for employees and remaining as income emphasizes the fact that employment costs have increased steadily since 1927 whereas income has fluctuated materially. Income per production man-hour has ranged from a profit of 33 cents to a loss of 33 cents. Employment costs have increased from 67 cents to $1.82 per production man-hour since 1927. EXHIBIT S-243 CHART 14.-Payments for employees and for investors per dollar of sales, United States Steel Corp. and subsidiaries Since 1902 employment costs-wages, salaries, social-security taxes, and pensions have absorbed an increasing proportion of United States Steel's receipts from customers, while interest and dividends provided as compensation for sav ings risked have absorbed a markedly decreasing proportion. For example, investors today receive less than 4 cents per dollar of sales whereas in 1902 they received more than 18 cents. Employment costs in 1949 were about 41 cents out of the sales dollar compared with about 29 cents in 1902. EXHIBIT S-244 CHART 15.-Average weekly earnings versus cost of living, employees of United States Steel Corp. and subsidiaries INDEX NUMBERS EXHIBIT S-244A AVERAGE WEEKLY EARNINGS VS. COST OF LIVING SOURCE: CORPORATION RECORDS AND U. S. BUREAU OF LABOR STATISTICS Since 1940 the cost of living has not increased as fast as the average weekly earnings of United States Steel's employees. Taking 1940 as 100, the Bureau of Labor Statistics Consumers' Price Index was 168.8 in 1949, while average weekly earnings of United States Steel's workers was 184.8-16 points higher. The decrease in average weekly earnings in 1946 and 1949 are principally attributable to the prolonged steel and coal strikes in those years. |