GROUP INSURANCE

Taranaki Daily News, 16 January 1933, Page 12

GROUP INSURANCE

UNEMPLOYMENT RELIEF AMERICAN INDUSTRY’S PLAN. WAGES LEVY AND SUBSIDY.

The adoption by .the National Electrical Manufacturers’ Association (Nema) of the U.S.A, of an unemployment insurance plan is an event of outstanding significance, not so much because of the magnitude of the scheme as because of the importance of the principle involved, a correspondent of the Times Trade Supplement wrote recently. This development marks a new stage in American industrial organisation, as it affords the first instance of a whole industry in America asociating its members in a comprehensive attempt to make provision for paying unemployment relief to its workers who have been dismissed because of unfavourable trade conditions. The scope of the scheme—to be known as the Nema Unemployment Benefit Plan —may be realised from the fact that Nema has a membership of some 300 concerns which are responsible for approximately nine-tenths of the aggregate output of the electrical industry; it is estimated that the number of employees who will ultimately be brought under the scheme will be in the neighbourhood of a quarter of a million. The scheme is to be introduced and operated on a voluntary basis and may be adopted by any works on an affirmative vote of 60 per cent, or more of the eligible employees at that works; eligible employees are those who receive a normal wage or salary of not more than 2500 dollars a year and have served the company continuously for at least one year. There is no suggestion of Government assistance or interference, and thus the scheme is on an entirely different footing from either the British or German unemployment insurance schemes. CONTRIBUTIONS. BY MEMBERS. Any company which adopts the plan will create an unemployment benefit plan trust, for the. benefit of its employees, each of whom is to pay into this trust 1 per cent. of. his actual weekly or monthly earnings for five years after the beginning of his participation, or tor such shorter or longer period as may be determined from time to time by. the administrators of the plan, but only while his earnings are. 50 .per cent, or more of his average normal full-time weekly or monthly earnings. The company is to contribute to the trust an amount equal to that contributed by the participating employees. . At each works the administration of the scheme is to. be vested in a board ,of not fewer than four nor more than 16 administrators, all of whom must be officers or employees of the company in question; one-half of the members of the board of administration are to be elected by the participating employee? and the other half are to be appointed bv the president of the company. PAYMENT' OF BENEFITS. ■ ■ It is provided that when an employee participating in this scheme is given notice of temporary lay-off by the company, notice shall also be given to the administrators of the scheme. For the first two weeks of unemployment there is to be no payment from the trust, but after that period unemployment payments are to be approximately 50 per cent, of the normal average full-time earnings, subject to the proviso that in no case are they to amount to more than 20 dollars a week. Payment of- unemployment benefits are not to continue for more than 10 weeks in any 12 consecutive months—provided, however, that during a period of what is to be known as an “unemployment emergency,” payments to pairticipating employees are to be made for such time and in such amounts as the administrators shall determine. EMERGENCY PROVISIONS. An “unemployment emergency” will arise in the following circumstances. WJien participating. employees are temporarily laid-off or are working short time, and weekly unemployment payments from the trust fund amount to a per cent, or more of the normal average weekly earnings , of all the participating employees, the administrators are to notify the company of this, fact, whereupon the normal payments by the participating employees are to cease. Upon receipt of this notification the company agrees to declare that an unemployment emergency has arisen, and thereafter, and so long as weekly unemployment payments from the trust amount to 2 per cent, or more of the normal average weekly earnings of the participating employees, the following emergency contributions are to be made .to the trust (a) From all those employed by the company at the particular works where an unemployment emergency has been declared and receiving 50 per cent, or more of their normal average full-time earnings, 1 per . cent, of such earnings; this includes all the officers of the company connected with that particular works. ...... (b) All the general and district, commercial, engineering and administrative employees of the company at all works and offices in the United States, not on a particular works’ pay-roll, shall contribute. such, proportion of 1 per cent, of their earnings as is determined by the ratio of the number of participating employees of the works at which an emergency exists to the total number of eligible employees of all works of the country. ... . (c) The company is to contribute to the trust fund an amount equal to that contributed by the employees of the company under (a) and (b).