Unemployment Insurance

A novel experiment in unemployment insurance will be tried next year, under the auspices of the Amalgamated Clothing Workers of America and tne clothing manufacturers.

Beginning Jan. 1, 1924, unemployment benefits will be paid out of an insurance fund contributed to by union members and their employers. Each week employees will pay into this fund 1 1/2% of their earnings, and their employers will contribute an equal amount. The fund will be administered by seven trustees: three manufacturers, three employees, and a Chairman designated by both. Professor John R. Commons of the University of Wisconsin now occupies this position.

No employee will receive benefits for reasons other than involuntary unemployment due to lack of work; payment to strikers is expressly forbidden. Payments will amount to 40% of the average full time weekly wage, but with a maximum of $20 per week. The agreement under which the fund, and payments from it, are to be administered covers carefully all circumstances in connection with the plan likely to arise. It will terminate April 30, 1925, unless renewed or extended prior to that time.

Fear of unemployment has long been recognized as the workers' greatest source of anxiety. The practical workings of the Chicago plan will be watched by both labor and manufacturers with close attention next year.