Have Angels Done More? The Steel Industry Consent Decree / Casey Ichniowski.

By:

Ichniowski, Casey

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w0674.Publication details: Cambridge, Mass. National Bureau of Economic Research 1981.Description: 1 online resource: illustrations (black and white)Subject(s):

J - Labor and Demographic Economics

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This study analyzes the Consent Decree of the United States' basic steel industry which reformed plant seniority systems to accommodate issues of equal employment opportunity. The plant-by-plant litigation brought under Title VII and Executive Order 11246 is shown to be the main catalyst which brought representatives of the steel industry, of the United Steel Workers of America, and of the appropriate government agencies to negotiate this industry-wide solution. The principal terms of the steel industry Consent Decree are: the establishment of a mechanism to implement the Decree; the uniform institution of plant-wide seniority; the retention of pay rates after transfer to a position that provides a lower pay rate than the previous position; the establishment of goals for minority representation in trade and craft jobs; and a back pay settlement. The analysis of these provisions reveals two related points. Black representation in trade and craft jobs increased in the four year period after the Decree, with an indication that the increase was greater than pre-1974 employment trends would have predicted. However, 1978 black/white employment figures indicate that underutilization of blacks in these positions still persists.

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Working Paper	Biblioteca Digital	Colección NBER	nber w0674 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w0671 Training, Tenure, and Productivity /	nber w0672 A Competitive Theory of Monopoly Unionism /	nber w0673 A Reexamination of Tax Distortions in General Equilibrium Models /	nber w0674 Have Angels Done More? The Steel Industry Consent Decree /	nber w0675 Wage-Employment Contracts: Global Results /	nber w0676 Quantity and Elasticity Spillovers onto the Labor Market: Theory and Evidence on Sluggishness /	nber w0677 Estimated Output, Price, Interest Rate, and Exchange Rate Linkages amongCountries /	Next

May 1981.

This study analyzes the Consent Decree of the United States' basic steel industry which reformed plant seniority systems to accommodate issues of equal employment opportunity. The plant-by-plant litigation brought under Title VII and Executive Order 11246 is shown to be the main catalyst which brought representatives of the steel industry, of the United Steel Workers of America, and of the appropriate government agencies to negotiate this industry-wide solution. The principal terms of the steel industry Consent Decree are: the establishment of a mechanism to implement the Decree; the uniform institution of plant-wide seniority; the retention of pay rates after transfer to a position that provides a lower pay rate than the previous position; the establishment of goals for minority representation in trade and craft jobs; and a back pay settlement. The analysis of these provisions reveals two related points. Black representation in trade and craft jobs increased in the four year period after the Decree, with an indication that the increase was greater than pre-1974 employment trends would have predicted. However, 1978 black/white employment figures indicate that underutilization of blacks in these positions still persists.