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Hammond, Reese, director of research and education, International Union

of Operating Engineers, AFL-CIO..
White, Craig W., manager, Barre Granite Association, Barre, Vt.
Holmes, Adolph, associate director, National Urban League, New York

City, NY
Felker, Merl, corporate director of personnel operations, Douglas Aircraft

Co., accompanied by S. Vincent McCleary, assistant to director, person-

nel operations
Erickson, L. A., president, Luninator, Inc., Plano, Tex.
Schevchik, Michael G., administrative assistant to the president, Elliott
Co., a division of Carrier Corp., Jeannette, Pa.---

STATEMENTS

Caples, William G., vice president of industrial and public relations, Inland
Steel Co., Chicago, Ill.

Prepared statement-

Churchill, Colin, secretary, Hospital Research & Educational Trust,

Chicago, Ill.; accompanied by Edward Weimer, staff member..

Counts, J. Curtis, vice president of employee relations, Douglas Aircraft

Co., Inc., prepared statement.--.

Curtis, Hon. Thomas B., a Representative in Congress from the State of

Missouri..

Dewhurst, John D., president, Arrow Tool Co., Inc., Wethersfield, Conn..

Prepared statement..

Ehrlich, Bernard II., association manager, Institute of Industrial Laun-

derers.--

Erickson, L.A., president, Luminator, Inc., Plano, Tex.

Prepared statement.--

Felker, Merl, corporate director of personnel operations, Douglas Aircraft

Co., accompanied by S. Vincent McCleary, assistant to director, per-
sonnel operations-

Flanagan, Robert E., supervisor of educational services, General Dynamics

Electric Boat Division, Quincy, Mass...

Franke, Prof. Walter, Institute of Labor and Industrial Relations, Uni-

versity of Illinois..

Prepared statement-

Haldane, Bernard, Foundation for Reemployment, New York, N.Y.

Hammond, Reese, director of research and education, International Union

of Operating Engineers, AFL-CIO.

Prepared statement, with exhibits.

Hartke, Hon. Vance, a Ú.S. Senator from the State of Indiana

Holmes, Adolph, associate director, National Urban League, New York

City, N.Y

Prepared statement...

Isenberg, Lee, executive director, Associated Restaurants of Connecticut,

Hartford, Conn..

Prepared statement.

Javits, Hon. Jacob K., a U.S. Senator from the State of New York.

Landis, Wilbur E., manager, Technical Education Department, Chrysler

Corp., Detroit, Mich..

Lidstone, Herrick K., of Battle, Flower, Stokes & Kheel, New York, N.Y.,

accompanied by Barbara Gray, executive assistant.

Miernyk, Dr. William, professor of economics and director, Regional Re-

search Institute, West Virginia University, Morgantown, W. Va---

Prepared statement-

Nye, Charles T., president, National Association of State & Territorial

Apprenticeship Directors -

Prepared statement.

Prouty, Hon. Winston L., a U.S. Senator from the State of Vermont-

Ruttenberg, Stanley H., Manpower Administrator, Department of Labor.

Prepared statement...

Schevchik, Michael G., administrative assistant to the president, Elliott

Co., a division of Carrier Corp., Jeannette, Pa..

Prepared statement..

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Shimkin, Leon, chairman of the board, Simon & Schuster, New York, N.Y.

Prepared statement.

Somers, Prof. Gerald, University of Wisconsin.

Sviridoff, Mitchell, executive director, Community Progress, Inc., New

Haven, Conn..

Prepared statement.

Taylor, David P., assistant professor of industrial relations, Sloan School

of Management, Massachusetts Institute of Technology

Prepared statement..

White, Craig W., manager, Barre Granite Association, Barre, Vt---

Wirtz, Hon. W. Willard, Secretary of Labor; accompanied by Stanley H.

Ruttenberg, Manpower Administrator; Hugh C. Murphy, Administrator,

Bureau of Apprenticeship, and Training; and Henry P. Przelomski,

Chief, Division of on-the-job Training Bureau of Apprenticeship and

Training---

Prepared statement.

ADDITIONAL INFORMATION

Articles entitled:

"Education: Investment in Human Capital,” from the First National

City Bank of New York's monthly letter, August 1965..

"Industry Wage Survey-Auto Dealer Repair Shops, August-October

1964," from the U.S. Department of Labor, Bureau of Labor Statis-

tics, Bulletin 1452, June 1965----

"Knowledge Production Grows Faster Than GNP-A Sign of Real

Economic Growth,” by Hon. Thomas B. Curtis, of Missouri, from

the Congressional Record, June 4, 1966..

“Human Investment Act of 1965," from the Congressional Record,

Feb. 17, 1965---

"The Human Investment Act," from the Congressional Record,

Sept. 9, 1965...

“The Human Investment Act of 1965: A New Approach To Meeting

the Challenge of Unemployment," from the Congressional Record,

Sept. 9, 1965.---

"Human Investment Credit," from "Toward Full Employment,'

committee print of Subcommittee on Employment and Manpower
of the Senate Committee on Labor and Public Welfare, April 1964..
"On Improving the Economic Status of the Negro," by James Tobin,

Yale University, New Haven, Conn...

“Shortage Raises Costs-Builders Strain Boom Limits as 30,000 Jobs

Go Begging," from the Detroit News, Sept. 6, 1965..

"Unemployment and Taxes Tax Credit as a Selective Economic

Stimulant," from the Michigan State University's Business Topics,

spring 1964 issue..

"Unemployment and Technological Change," from the Joint Economic

Committee Report, 1965-
Communications from:

Dubrow, Jordan, executive vice president, Major Chevrolet, Inc.,

Long Island, N.Y., to Senator Clark, Aug. 31, 1965.,

Elias, Stephen, ARCS Industries, Inc., Wantagh, N.Y., to Senator

Javits, Sept. 16, 1965---

Hammett, E. R., senior vice president, Ingalls Shipbuilding Corp.,

Pascagoula, Miss., to William C. Smith, subcommittee staff counsel,

September 10, 1965..

Wiebusch, Richard A., skilled trades committeeman, Local 685,

United Automobile, Aerospace, Agricultural Implement Workers of

America (UAW), Kokomo, Ind., to Senator Hartke, September 2

1965.

Hospital Research & Educational Trust, changes proposed by --

Institute of Industrial Launderers, “Interim Report No. 3,"submitted by

Bernard H. Ehrlich, project director, and Harry Fauber, project field

director.

Joint Economic Report, 1965, excerpt from, March 17, 1965.

319

359

77

371

371

211

202

323

EMPLOYER ENCOURAGEMENT FOR ON-THE-JOB

TRAINING

TUESDAY, SEPTEMBER 14, 1965

U.S. SENATE,
EMPLOYMENT AND MANPOWER SUBCOMMITTEE OF THE
COMMITTEE ON LABOR AND PUBLIC WELFARE,

Washington, D.C.
The subcommittee met at 10 a.m., pursuant to call, in room 4232,
Near Senate Office Building, Senator Joseph S. Clark, chairman of the
subcommittee, presiding.
Present: Senators Clark (presiding), Kennedy of Massachusetts,
Javits and Murphy.

Committee staff members present: Stewart E. McClure, chief clerk; William C. Smith, subcommittee counsel; and Stephen Kurzman, minority counsel.

Senator CLARK. The subcommittee will be in session. Our subcommittee begins hearings today on employer job training: These hearings are part of this subcommittee's continuing policy of examining the manpower and employment problems of our Nation and of developing recommendations for legislation and administrative action to help assure the wise use of our human resources.

On-the-job training has a number of advantages as a training method. On-the-job trainees are provided with income and employment while in training Training opportunites are tied directly to the demand for labor in the occupation trained for, and a job is assured before the job applicant is selected. Public investment in plant and equipment is avoided along with the vocational education problem of keeping up with the latest equipment development.

This subcommittee and the Congress recognized these advantages when it provided for on-the-job training programs under the Manpower Development and Training Act of 1961. The subcommittee also recognized and recommended that additional ways be found to provide employer incentives to encourage industry to make greater use of on-the-job training. These hearings will follow through on the initial studies of the subcommittee in this area.

Personally, I have been quite disappointed at the effectiveness of the on-the-job training provisions in the manpower act. I recall when Ambassador Goldberg was Secretary of Labor, before he went to the Supreme Court, he and I in preparing hearings on the act had high hopes that on-the-job training would be one of the most effective ways, probably the most effective way of retraining individuals for useful employment.

It just has not worked out that way, and I am delighted that we are now going to take the time and effort in the subcommittee to find out

why and to see what we can do, if anything, either legislatively or by further prodding of administrators and management, union labor, and the other interested agencies, to see if we cannot step up the pace and effectiveness of on-the-job training.

The subcommittee will review existing efforts by the Federal Government and within industry to promote on-the-job training, and seek out recommendations for further Federal action in this area in an effort to determine whether new legislation or administrative action is needed to assure that the fullest possible appropriate use is made of direct employer training and retaining of the unemployed and underemployed.

As chairman of this subcommittee, at the beginning of this session of Congress, I suggested to the members of the subcommittee that each assume responsibility for specific areas of the subcommittee's concern. Each member would thus take the initiative in developing issues through hearings, making recommendations to the Congress and executive branch and introducing and processing legislation.

I am delighted that Senator Kennedy of Massachusetts has agreed to chair these hearings and carry on the subcommittee's work in this most important area with which we are concerned this morning. I am sure that as a result of these hearings, the Congress and the administration, State and local governments, industry and the public will have a greater understanding of the role which on-the-job training now plays and can in the future play in helping to provide the skilled manpower needed by industry.

As chairman of the subcommittee I shall take a keen personal interest as these hearings develop and hope to work right closely with you, Senator Kennedy, in preparing the report which I am sure you will want to make when the hearings have been concluded.

I have here an opening statement on behalf of Senator Prouty of Vermont, who could not be with us this morning, which he asked me to read, and I am happy to accede to his request.

This is Senator Prouty's statement:

21

STATEMENT OF HON. WINSTON L. PROUTY, A U.S. SENATOR FROM

THE STATE OF VERMONT

I am delighted that these hearings are being held today, under the distinguished chairmanship of Senator Kennedy of Massachusetts.

In recent years the Federal Government has quite properly taken an interest in the problem of improving the Nation's labor skills. But all too often the Congress has tended to concentrate on Governmentoperated programs, and to neglect the tremendous job training efforts carried on quietly by the American private enterprise system.

No one can be sure of the amount of money invested in training by private business. One writer, Professor Clark-parenthetically, not related to the subcommittee chairman-has cited the figure $17 billion. Another, Professor Machlup, estimated that about $2.7 billion is spent on informal on-the-job training by business each year, with another $1.5 billion in formal training. Whatever the actual figures may be, they are certainly very large.

I have long been interested in devising a way to promote the jobtraining efforts of private industry. Two years ago I asked the Library of Congress to prepare for me a study on tax incentives to

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