Unemployed Relief.

Star (Christchurch), Volume XLIV, Issue 662, 16 January 1933, Page 6

Unemployed Relief.

Group Insurance

Plan Adopted by American Industry.

'J'HE ADOPTION by the National Electrical Manufacturers’ Association (N’ema) 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 re* centlv. This development marks a new stage in American industrial organisation, as it affords the first instance of a whole industry in America associating 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 N’ema 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 w'hom 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 for such shorter or longer period as may be determined from time to time by the administrators of the plan, but only wlv'le 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 sixteen 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 employees and the other half are to be appointed by 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 twenty dollars a week. Payment of unemployment benefits are not to continue for more than ten weeks in any twelve consecutive months—provided, however, that during a period of what is to be known as an “ unemployment emergency ”, payments to participating 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. When participating employees are temporarily laid off or are working short time, and weekly' unemployment payments from the trust fund amount to 2 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 employ’ees, the following emergency contributions are to be made to the trust fund: (a) From all those employed by the company at the particular works where an unemploj-ment 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 company. (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).