During the first 2 years of the plan employees with less than 10 years' seniority will accumulate 0.25 of a credit unit for each week in which they were employed 32 or more hours, and employees with longer service will accumulate 0.50 of a credit unit for each such week of employment. Subsequently all employees will receive 0.50 of 1 credit unit for each such week of employment. A maximum of 26 credit units can be accumulated by a worker at any one time.

Plan contingent on obtaining rulings (1) that company contributions are deductible expenses for Federal income-tax purposes; (2) that such contributions would be excluded in computation of overtime pay under the Fair Labor Standards Act; and (3) in States in which the company has two-thirds of its employees that simultaneous payment of benefits would not reduce or eliminate State unemployment benefits. If these rulings are not obtained by June 1, 1957, the plan terminates, except to pay benefits in States where supplementation is permitted (or substitute benefits where supplemental benefits not allowed) until funds have been exhausted. If the plan is terminated in this manner, the company and the union are to negotiate with respect to the use of the money which the company otherwise would contribute to the fund; if no agreement is reached within 60 days, there will be a general-cent-an-hour wage increase.

(Source: U. S. Department of Labor, Bureau of Labor Statistics, Wage Chronology No. 9, Supplement No. 3, in Monthly Labor Review, October 1955, pp. 1150 and 1151.)

STEEL INDUSTRY-SUPPLEMENTAL UNEMPLOYMENT BENEFIT PLAN

Contributions

Regular contributions of 3 cents an hour (applied to total "contributory hours" in each month, which include both straight time and overtime hours worked), or such part of 3 cents that is needed to maintain the fund of the plan at "maximum financing." "Maximum financing" is defined as the product of 10.5 cents an hour multiplied by the number of "contributory hours" in the first 12 of the 14 months next preceding the 1st day of each month.

Additional contributions by the company into a "contingent liability" fund, if and when such contributions are needed to provide the benefits of the plan.

Benefits

Weekly benefits are to total 65 percent of normal weekly earnings after taxes (based on 40-hour week). Unemployment compensation payments under State plans are to be offset against these amounts. Company payments are subject to a maximum of $25 per week (plus $2 for each of not more than 4 dependents) for each week for which unemployment compensation under State plans are paid, or $47.50 (plus $2 for each dependent up to 4) for weeks thereafter, up to a maximum of 52 weeks.

Workers will receive weekly benefits for the number of weeks for which they have accrued credit units, as provided below.

Eligibility

Benefits will be paid to employees with at least 2 years of continuous service with the company and with at least some service in 6 months in the 12 months immediately preceding his layoff, or in 12 months in the 24 months preceding the layoff, or in 18 months in the 36 months preceding the layoff, or with 1,100 credited hours in the 12 months preceding such layoff.

Credit units determining duration of weekly benefits will be credited at the rate of one-tenth unit for each 8 credited hours. Employees will be allowed to accrue only 26 credit units per year and accumulate a total of only 52 such credit units at any one time.

The amount of weekly benefits will be reduced and the cancellation of credit units accelerated under certain specified circumstances when the fund falls substantially below "maximum financing." These modifications are set forth in detail in a schedule included in the contract.

(Source: Supplemental Unemployment Benefit Plan, Steel Industry and United Steelworkers of America.)

SUPPLEMENTAL UNEMPLOYMENT BENEFIT PLAN IN CONTRACT OF THE CONTINENTAL CAN CO. AND THE INTERNATIOAL ASSOCIATION OF MACHINISTS

Contributions

Regular contributions of 3 cents per employee-hour into a general fund to finance the plan. Additional contributions of 2 cents an hour into a contingent fund as necessary to assure continuance of the plan.

Benefits

Weekly benefits shall be based on annual base earnings as per the following table:

These benefits are to be paid for a maximum of 52 weeks. Benefits paid under State unemployment compensation laws are deductible from the above scale.

When the employee's services are completely terminated, because of closing of a plant, or abolishing his job, the weekly benefits will be converted into a lumpsum severance allowance.

Eligibility

Employees become eligible to benefits if they have 3 years of continuous service including a total of 4,500 credited hours, and not less than 3,000 credited hours during the 36-month period preceding the calendar month of layoff. Weeks of eligibility are determined on a basis of 1 week for each full 80 hours worked. Each employee will be allowed to accumulate a maximum of 52 weeks.

(Source: Supplemental Unemployment Benefit Plan, Continental Can Co., and International Association of Machinists.)

TABLE A-25

Comparative unemployment benefits under present and proposed railroad plans and total benefits applicable to workers in automobile and steel industries and Continental Can employees

1

1 Assumes worker with four dependents in steel industry and Continental Can Co. 2 Regular benefits, applicable after first 4 weeks of benefits.

3 For worker with 5 or more years of service.

NOTE.-Amounts computed for automobile, steel, and Continental Can workers assume $30 per week paid under State unemployment compensation systems.

Source: Railroad Unemployment Insurance Act (present and as proposed); U. S. Department of Labor, Bureau of Employment Security, Significant Provisions of State Unemployment Insurance Laws, Nov. 1, 1956; union agreements providing supplemental unemployment benefits.