Determinants of coal mine labor productivity change. [1950 to 1977

Abstract

Coal mine labor productivity (tons per miner-shift) has been falling yearly since 1970. The decline in labor productivity since 1970 has implications for the coal industry's labor demand, cost of production, and injuries and could hinder the ability of the industry to meet the coal output goals of the National Energy Plan. The purpose of this research study was to identify and measure the causes of labor productivity decline. Concise answers are given to three questions: Why is coal mine labor productivity important. What are the causes of labor productivity decline in deep and surface coal mines. What are the implications of these findings for future coal mine labor productivity. Coal mine labor productivity is important for three reasons: (1) it affects the cost of coal production, (2) it affects coal industry labor demand, and (3) it affects injuries and injury rates in coal mining. Labor productivity is the link between output levels and employment requirements. The period of declining productivity coincides with major changes in the coal industry's environment: (1) change from a largely unregulated industry to a highly regulated industry (the Coal Mine Health and Safety Act of 1969; implementation of many state surface mine reclamation laws, etc.) and (2) change from a declining, marginal profits industry to a growing, profitable industry (increasing coal prices and demand in the 1970s). A major conclusion of the study is that a portion of the high labor productivity of the 1960s was possible because some of the costs of coal mining - worker injuries, black lung disability, and environmental damage - were not being paid for by the coal industry and coal consumers. Once these costs were forced internally on the mine operators by legislation, productivity fell and the cost of production increased.