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: Tractors
; Equipment
Bargained Work Rules Can Increase Food
ALLEN H.
MATZ, INC.
505 E. Main St.
New Holland, Pa.
Ph. 354-2214
(Continued From Page2b)
decrease or limit labor
productivity in the distribution of
milk to stores would have a
double-edged effect on the ob
jective of preserving the number
of jobs. First of all, it would
require more men to deliver a
given quantity of milk to
supermarkets. Secondly, it would
keep distribution costs to the
supermarkets up, and con
sequently, cost differences
between supermarket delivery
and other wholesale deliveries or
home delivery would be lessened.
If prices reflect these differences
in costs, fewer people would be
induced to shift to supermarket
purchase and would continue to
buy at those outlets requiring
relatively high levels of labor
input. More union jobs could be
preserved as a result.
The Chicago-Detroit case
In the fall of 1968 the fluid milk
industries of Chicago and Detroit
were studied to determine
whether or not a relationship
between bargaining and milk
costs existed in those two
markets. +
Labor unions have represented
dairy firm employees in Chicago
and Detroit for several decades.
In fact, the industries have long
been considered fully organized.
(All of the larger firms in the
Chicago and Detroit fluid milk
markets were unionized.)
The larger dairy firms in
Chicago and Detroit have a
number of specialized routes to
serve supermarkets. Charac
teristics of these routes are
shown in the accompanying
table.
The 62 routes in Detroit
delivered more milk during the
study week then the 97
specialized routes in Chicago.
Average daily route volume was
more than twice as great in
Detroit as in Chicago. Drivers in
Chicago averaged a little under a
7-hour work day (6.96 hours)
while those in Detroit worked
nearly 8 y 2 hours. In both cases
time included a half-hour-on-
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R.D.2, Denver, Pa. 17517
Ph. 215-267-7610 OR 215-267-7514
Serving all of Lancaster and Lebanon County
route lunch break
Management of one firm in
Dertoit placed a helper on each of
their large-volume supermarket
routes, though the union didn’t
insist on this practice. They
realized that such a practice
reduced productivity since the
helper was essentially non
productive during the driving
periods. It was also questionable
whether or not a helper was
essentially non-productive during
the driving periods. It was also
questionable whether or not a
helper improved at-stop
productivity. The firm was
contemplating elimination of
helpers at the time of the survey.
The firm’s use of helpers did,
however, tend to reduce the
quantity of milk delivered per
labor hour on supermarket routes
in Detroit. Still, units of products
delivered per hour of labor were
more than 33 percent greater in
Detroit than in Chicago.
Detroit drivers worked longer
hours. Fewer at-stop services
were performed at wholesale
outlets in Detroit. As a con
sequence Detroit routes
delivered more product each day
and had substantially higher
output per man-day than in
Chicago.
A careful examination of the
labor agreements and negotiated
settlements of disputed work
rules provides some insight into
the'differences between the two
otherwise similar markets.
By limiting the time trucks
were permitted on the street, the
hours available for delivery in
Chicago were restricted, and
much of the productivity dif
ference between these two
markets could be explained by
that fact alone. Productivity per
on-route hour was more nearly
similar in the two markets than
productivity based on total hours
worked. Conceptually that is
difficult to understand but it is
easier perhaps when one con
siders the fact that the difference
between on-route time and total
time is that spent at the plant or
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HAUER EUCTRIC, INC.
Lancaster Farming. Saturday, August 25,1973—2
Ambassador
24 Hour Service
Costs
eating lunch along the route The
amount of this time was the same
in both markets and amounted to
about three hours per day The
longer a routeman worked, the
more time he had available to
deliver product, and the less
effect non-delivery time had on
average productivity, Detroit
drivers worked longer, had more
time to distributed product, and
thus a higher productivity
resulted.
The difference in hourly labor
productivityin these two markets
for that time actually spent on the
routes was not very great
Detroit productivity was higher,
but it would have been much
greater if helpers had not been
used on some Detroit routes. The
potential difference can be ex
plained by the provisions
requiring certain at-stop services
in Chicago which were neither
required nor performed ex
tensively in Detroit and by
average volume per delivery
Some wholesale customers in
Detroit wanted services similar
to those which Chicago dairies
were required to provide When a
comparison was made of Detroit
routes providing those services
with comparable Chicago routes,
it was found that labor produc
tivity per on-route hour in each
market was almost identical
Thus the intermarket difference
in productivity could probably be
attributed to the amount of work
required from the average
routeman and would not
necessarily reflect how am
bitiously he performed that work
Not all routes in Detroit were
required to provide these ad
ditional services and did so only if
the services were performed less
frequently in Detroit and the
average route’s productivity per
on-route hour was higher.
The average volume delivered
per stop was much higher in
Detroit than in Chicago. Though
the weekly volumes per customer
were very similar in the two
markets, the volumes delivered
(Continued On Page 28)
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