A Note of Average Hourly Earnings in Aircraft and Guided Missiles and Space Vehicles Manufacturing - Sic 3721 - Sic 3761

Employment and Earnings, May, 1999

For many years, the Bureau of Labor Statistics average hourly earnings series for production workers in aircraft manufacturing (SIC 3721) and guided missiles and space vehicles manufacturing (SIC 3761) have been used to escalate labor costs in contracts between aerospace companies and their customers. Although the Bureau's series by definition take account of traditional wage rate changes, they do not capture "lump-sum payments to workers in lieu of general wage increases" which were negotiated in aerospace manufacturers' collective bargaining agreements beginning in late 1983.

Because of special circumstances in the aerospace industry, BLS has calculated average hourly earnings series for SIC 3721 and SIC 3761 which include lump-sum payments. These series, beginning in October 1983, the effective date of the first aerospace bargaining agreement using lump-sum payments, were published in the June 1988 issue of Employment and Earnings. Current and year earlier data are presented in table B-15a along with the average hourly earnings series produced as part of the Current Employment Statistics program. An explanation of the methodology used to drive these series in the Explanatory Notes of this publication.

B-15a. Average hourly earnings in aircraft (SIC 3721) and guided missiles and space vehicles (SIC 3761) manufacturing

                                      Aircraft (SIC 3721)

Series                         Feb.      Mar.      Feb.      Mar.
                               1998      1998      1999    1999(p)
Average hourly earnings,
  excluding lump-sum
  payments                   $20.86    $21.03    $21.47    $20.73
Average hourly earnings,
  including lump-sum
  payments                    20.88     21.07     21.58     20.77

                                   Guided missiles and space
                                      vehicles (SIC 3761)

Series                          Feb.      Mar.      Feb.      Mar.
                                1998      1998      1999    1999(p)
Average hourly earnings,
  excluding lump-sum
  payments                     $21.49    $21.33    $21.95    $22.01
Average hourly earnings,
  including lump-sum
  payments                      21.65     21.57     22.15     22.10

(p) = preliminary.

B-16. Average hourly earnings, excluding overtime(1), of Production workers on manufacturing payrolls

                                      Mar.      Apr.      Feb.
          Industry                    1998      1998      1999

Manufacturing                        $12.76    $12.83    $13.00
 Durable goods                        13.25     13.29     13.43
  Lumber and wood products            10.41     10.47     10.75
  Furniture and fixtures              10.36     10.43     10.62
  Stone, clay, and glass              12.63     12.76     12.82
   products
  Primary metal industries            14.47     14.69     14.41
  Fabricated metal products           12.31     12.32     12.65
  Industrial machinery and            13.50     13.62     13.95
   equipment
  Electronic and other electrical     12.49     12.59     12.72
   equipment
  Transportation equipment            16.76     16.73     16.55
  Instruments and related             13.13     13.27     13.39
   products
  Miscellaneous manufacturing         10.37     10.42     10.79

 Nondurable goods                     12.02     12.14     12.35
  Food and kindred products           11.08     11.16     11.24
  Tobacco products                    17.95     18.49     17.32
  Textile mill products                9.77      9.90     10.11
  Apparel and other textile            8.20      8.28      8.42
   products
  Paper and allied products           14.40     14.59     14.82
  Printing and publishing             12.82     12.83     13.18
  Chemicals and allied products       16.00     16.23     16.31
  Petroleum and coal products         19.70     19.56     20.02
  Rubber and misc. plastics           11.19     11.28     11.58
   products
  Leather and leather products         9.04      9.07      9.34

                                      Mar.        Apr.
           Industry                 1999(p)     1999(p)

Manufacturing                        $13.03     $13.09

 Durable goods                        13.47      13.51
  Lumber and wood products            10.76       (2)
  Furniture and fixtures              10.60       (2)
  Stone, clay, and glass              12.85       (2)
   products
  Primary metal industries            14.50       (2)
  Fabricated metal products           12.68       (2)
  Industrial machinery and            14.00       (2)
   equipment
  Electronic and other electrical     12.74       (2)
   equipment
  Transportation equipment            16.62       (2)
  Instruments and related             13.43       (2)
   products
  Miscellaneous manufacturing         10.77       (2)

 Nondurable goods                     12.38     $12.46
  Food and kindred products           11.27       (2)
  Tobacco products                    18.61       (2)
  Textile mill products               10.11       (2)
  Apparel and other textile            8.52       (2)
   products
  Paper and allied products           14.85       (2)
  Printing and publishing             13.20       (2)
  Chemicals and allied products       16.28       (2)
  Petroleum and coal products         20.23       (2)
  Rubber and misc. plastics           11.60       (2)
   products
  Leather and leather products         9.29       (2)