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LIBRARY MINISTRY OF THE SOLICITOR

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BIBLIOTHÈQUE MINISTÈRE DU SOLLICIlEuR GÉNÉRAL

V7S1/4 STUDy OF

INDUSTRIAL ACTIVITIES

IN

CANADIAN PENITENTIARIES

by

STEVENSON & KELLOGG, LTD.

DECEMBER, 1962

CONTENTS

Page

iii

vii

xv

Letter of Transmittal

Introduction

Summary

P ref ace

PART I: PLANNING FOR AN INDUSTRIAL PROGRAM

1. Manpower Utilization

Desirable Industrial Skills The Inmate Manpower Pool The Allocation of Inmates The Productivity Level of Inmates

2. The Product The Market Survey

3. Industrial Shops Type and Location Equipment Requirements Determination of Specific Manpower Allocation Shop Space Requirements Industrial Shops Warehouse and Stockroom Space Requirements

4. The Industrial Management Organization Organizing for an Industrial Activity

5. Public Relations

1

1 6

13 14

17 18

36 36 37 38 39 40 51

53 54

74

PART II: OPERATING AN INDUSTRIAL PROGRAM

6. Marketing Operations Servicing the Market Area Policy Considerations The Sales Operation

85 86 86 89

1574

Supporting the Direct Sales Effort 90 Post Sales Policies 92 Pricing Policy 93

7. Industrial Operations 95 The Duties and Responsibilities of the Shop Foreman 95 A Training Program for Foremen 98 Career Planning for Shop Foremen and Assistant Wardens -

Industry 101 Foreman Salaries 106 Inmate Program Scheduling 112 Shop Discipline 114 A Training Program for Inmates 117 Inmate Pay and Incentives 118

PART III: CONTROLLING AN INDUSTRIAL PROGRAM

8. Finance and Accounting 125 Capital 126 Industrial Accounting 127 Manufacturing Costs 133 Control by Standard Costs 136 Timekeeping 137

9. Industrial Controls 139

Production Control 139 Quality Control

PART IV: A FORECAST OF RESULTS

10. Increased Reform - Decreased Cost 153

PART V: INSTALLING AN INDUSTRIAL PROGRAM

11. A Plan of Implementation 158 The Pilot Installation 159 The Total Installation 161 Establishing a Timetable 163

Appendix 165

Bibliography 216

TORONTO, Ontario.

December 28, 1962.

STEVENSON & KELLOGG, LTD. CONSULTING MANAGEMENT ENGINEERING

OFFICES:

807 SUN LIFE BUILDING MONTREAL 2, P. Q.

150 EGLINTON AVE. EAST TORONTO 12, ONTARIO

810 ROYAL BANK BUILDING VANCOUVER 2, B.C.

Mr. A. J. MacLeod, Commissioner of Penitentiaries, The Department of Justice, Ottawa, Ontario.

Dear Mr. MacLeod:

In May of this year we began a study of how you might develop and ope r-ate an expanded industrial program to•aid in the reform of penitentiary in-mates. Our investigations are now complete. They are described, along with our conclusions and recommendations in the attached report.

We consider it a privilege to have been associated with an undertaking of such splendid social purpose. Although prison industry has existed for many years the concept of industrial training as an integral part of the broad program of prisoner rehabilitation is so new that few precedents are available either for your guidance or ours. We are thus sending you a unique report - one which we trust will be of help to you and your officers in your plans for the future.

In our approach to this challenging problem we have tried to keep in proper perspective the unusual restrictions of institutional life. These not only modify the applicability of general business practice but underline, most emphatically,the need to provide the best amalgam of the world of the prisoner and the world to which he must eventually return.

Respectfully submitted,

STEVENSON & KELLOGG, LTD.

D. S. C raig, B. A. Sc. , 13/. Eng. Executive Consultant.

MEMBER,ASSOCIATION OF CONSULTING MANAGEMENT ENGINEERS,INC.

INTRODUCTION

The purpose of the study was outlined in the original terms of reference:

"To recommend a consolidated industrial program for present and planned institutions which, within the re-strictions of overall penitentiary operations, would best aid in the rehabilitation of prison inmates."

The need for the study was borne out of the desire of administrative per-sonnel in the government service to capitalize on the full rehabilitative poten-tial of a program of penitentiary industrial employment. The importance of rehabilitation has increased in the face of the continuous growth in prison population. This has averaged and is expected to continue to average at least six percent annually for some years to come.

Administrative personnel realized that an industrial program must be conceived and implemented which would provide for prompt changes and serve also as a guide for future development as the need arises. They were fully conscious that such employment was an excellent method of rehabilita-tion. This training however, should be carried out under the conditions which prevail in industry generally so that it will facilitate the inmates' assi-milation into the regular industrial labour force.

During the course of this study, every aspect of the problem has been subjected to penetrating examination. The areas of inquiry included purpose, organization and administration, classification and psychological evaluation, market research and marketing programs, the determination of necessary and desirable industries, supervision, facilities, shop layouts, product eng-ineering, rehabilitation, the productivity levels of inmates, and the general effectiveness of managerial controls.

Furthermore, particular attention was given to the matter of public rela-tions. In this regard, liaison was maintained with such groups as the Cana-dian Manufacturers Association, the Canadian Labour Congress and the John Howard Society as well as many individual executives in the fields of manage-ment or organized labour.

The whole undertaking had the complete co-operation and support of the Canadian Penitentiary Service. Because of this helpful interest in all phases of the study some positive and prompt steps can be taken toward the desired goals.

vi

This is the final report on this study. It describes an industrial com-plex which will be adequate to employ all those inmates who are available for employment; and which has as its primary goal rehabilitation. It recognizes that industrial employment is only one means of "applied rehabilitation". It presumes that the most beneficial program for each individual inmate must be determined through the classification process.

The reader will observe that the report occasionally goes beyond the limits specified by the detailed Terms of Reference. For instance, one en-tire chapter deals with the philosophic aspects of rehabilitation and another area delineates the number of inmates who might benefit most from academic education.

These liberties were taken in order that the recommended industrial program could be placed more solidly within the framework of institutional life. As is suggested above, the industrial program is only one facet of a broader correctional program. If it is to achieve its maximum reform pot-ential some attention must be given to its relationship with other programs.

Unfortunately nowhere could we find, either by statement or by practice, a broad, overall correctional program to which we could refer. It became necessary, therefore, for your consultants to formulate certain required concepts. This was done by research of the available literature, by many discussions with Canadian officials, by discussion with U. S. officials, by correspondence with certain eminent penologists and by discussion with pri-soners.

As these concepts were developed they were discussed at length with many penitentiary officials - both in the field and at headquarters. We be-lieve we are correct when we say that they have been found largely accept-able by everyone contacted.

Your consultants do not presume to be penologists. We do believe, how-ever, that if an inmate, properly selected, is adequately instructed in a typical industrial job and in a realistic industrial atmosphere that there is a much better chance of his finding a job and keeping it.

It is to these ends that the entire report is addressed.

SUMMARY

It is generally conceded by interested authorities that a program of industrial training can be a powerful force in the rehabilitation of institution-al inmates. The success of the program depends upon three basic factors - the concept, the organization and the operation.

Industrial work is regarded as an integral (and major) part of a broader correctional program. It is designed to train those inmates who would not benefit from further scholastic education, who do not have the qualification to enter a trades training program - either formally or in one of the main-tenance crews - but who have more potential than is required for the menial institutional maintenance tasks.

The conception of a powerful industrial program will involve considera-tion of such factors as:

The Work Day - It must be as close to eight hours as practical and suffi-cient work must be supplied to occupy each inmate for the entire period.

The Type of Work - The work should be determined by the skill markets of the basic area serviced by the institution. It should be interesting and present a moderate challenge to the inmate.

Inmate Motivation - Inmates should be motivated in a positive manner, by ail the means at the institution's command, to enter a program and, more importantly, to strive continually toward higher achievement.

Given proper conception the industrial activity will require proper org-anization. Implicit in this requirement are such considerations as:

Selection of Inmates - It is of paramount importance that every individ-ual inmate be classified adequately so that proper selection is possible. The importance of this phase cannot be overemphasized.

Development of Markets - Markets must be developed to absorb the product of an industrial program. In addition, market-place requirements will demand realistic adherence to quality, cost and delivery specifications.

Facilities - Adequate shop space together with realistic equipment in a good state of repair are of prime importance.

Capital - Adequate funds for the proper financing of the enterprise are vitally important. Lack of capital can reduce inventories below realistic operating levels and thus effectively strangle a manufacturing operation.

vii

Given concept and organization there remains the operation of the pro-gram. Successful operation will depend upon many factors, notably;

An Administrative Organization - Manufacturing operations are tremen-dously complex. They demand, for successful operation, an organization specifically oriented to meet their problems - problems which can be immed-iate or in the foreseeable future. When such complexity is compounded by the extra emphasis placed on training and counselling in institutional indus-tries the demand for proper organization is even greater.

1Vianagerial Controls - The management of a complex operation demands that information be available at every level of the organization to summarize the results of the operation in a meaningful manner. Properly constituted, they are a tremendous aid in gruiding managerial decisions.

Staff - Adequate staff, technically competent, who are also capable as trainei:Fand counsellors, is the heart of a successful rehabilitative program.

Shop Conditions - These must be as close to a normal industrial atmos-phere as is practically possible. Discipline, safety regulations, require-ments for both quality and quantity of production - all of these help to esta-blish a shop atmosphere. Close attention to realistic and meaningful require-ments is almost mandatory.

These, then, are the major attributes to be expected in a good industrial program. Unfortunately, examination of the present system gives evidence of serious shortcomings in almost every instance.

In many cases the work day is woefully short - hampered by conflicting requirements of exercise, recreation, specialist counselling and a host of other reasons. Additionally shops are uniformly overstaffed beyond the level necessary to achieve the meager production demands placed upon them. A, conservative estimate indicates that institutional inmates produce at a rate about 6% of that encountered in regular industry.

The type of work, generally, meets basic area requirements with one or two notable exceptions. For instance, there are no fish canning industries although this is a major employer of male labour on both Canadian coasts. Fuither, there is some lack of clarity between what constitutes industrial activity versus what constitutes trades training. At the moment the indust-rial list includes motion picture projector repair (a forerun.ner of electronic service training), textile machine (sewing machine) repair and automotive repair. Clarification is needed.

viii

Inmates are not strongly motivated to enter into correctional programs. In certain institutions it is possible to obtain assignments outside of any pro-gram and still progress to the top level of the daily pay schedule. Also re-cent Penitentiary Branch investigations have disclosed that the Earned Re-mission Program is not being used as intended.

Inmate classification procedures could be significantly improved. Lack of specialist staff and a resultant backlog of work have resulted in classifica-tion being based almost entirely on the evaluation of the individual inmate as a security risk rather than on reform potential.

This condition is further magnified by the fact that the methodology of rehabilitative treatment is not clear. Lacking proper guidance institutional authorities tend to assign inmates to activities on the basis of their past ex-perience (e. g. farming) rather than on the basis of rehabilitative require-ments.

Market development has not kept pace with demand. Although the extent of the market has been well delineated for some time certain factors have militated against proper development. A clearer statement of Government intent might have encouraged government department purchasing authorities to purchase more penitentiary products. A more concentrated attack on the market might also have produced greater results. Suffice to say that present industrial production is in the neighborhood of $2.2 million (wholesale com-mercial dollars), whereas the available inmates, with suitable facilities and operating at 40% of commercial capacity could produce an annual sales volume of $14-$15 million.

Facilities, generally, are totally inadequate for a proper program em-ploying the available inmates. Shop space presently totals approximately 295,000 sq. ft. and houses roughly 1,600 inmates. Some equipment is primi-tive, some is semi-obsolete, some is in poor operating condition, some is of the "hobby-shop" variety and thus inadequate to the job, some is excellent. In any case more and better equipment is required.

The problem of facilities will be heightened if present trends of inmate population growth continue.

Analyses show that the present industrial employment potential is approx-imately 2,000 (instead of 1,600). However by the time new facilities can be planned and built (estimated 5 years) the potential industrial population will have exceeded 2,700.

ix

Available capital, properly administered, is adequate to present produc-tion volumes. However inventory management problems have recently created a situation of capital shortage. This problem can be solved by cer-tain simple changes in inventory policy and if this is not entirely adequate a system of progress billing could possibly be introduced:

The administrative organization is not designed to meet its major pro-blems. At headquarters there is no function specifically charged with mar-ket development - one of the most immediate and pressing problems. A similar lack exists in the field. The responsibilities for the three major managerial functions of Planning, Operating and Control are not kept separ-ate but may be found to reside in one person. In general, duties, responsi-bilities and authorities are not clearly specified or understood.

There is a similar lack of clear understanding of proper relationships between the various Divisions within the Branch. Essentially all Divisions should be staff services to the Deputy Commissioner. However, all too often, cases have been observed where line authority has been assumed by these staff services.

Managerial control procedures are totally inadequate to the job in hand. They are not designed to ensure the achievement of industrial objectives. This is partially due to the fact that the objectives themselves are not clearly defined.

There is a shortage of staff at some of the institutions to direct the acti-vities of the industrial shops. The ratio of inmates to staff is often too high to permit adequate training and counselling.

In general we have found these shop instructors to be technically compe-tent. More formal training appears desirable in the fields of shop manage-ment, inmate training and inmate counselling.

Pay scales, on average, appear to be adequate. However this average is misleading. Detailed investigation shows that the policy of a uniform national pay scale results in rates which are too high in some areas and which are inadequate in others depending on local conditions.

Shop conditions at the moment are not representative of similar condi-tions in commercial industry. Overcrowding, lack of production demand, and so forth militate against good discipline, and demand for production quantity. Safety regulations are, however, usually followed quite realistic-ally.

xi

It is recognized that all of the foregoing problems are magnified by the general overcrowding of the institutions. In many cases wardens are forced, by circumstance, to assign inmates to programs which are already over-crowded. In the institutions where detailed surveys were made one uniform condition was observed - that every program excepting scholastic education, was manned beyond its reasonable capacity. This serves to point up the gen-eral need for more facilities for every program and not merely that of Ind-ustries.

From the foregoing it is obvious that the present Industrial Program will require complete overhaul in order to take its rightful place as a major program for the rehabilitation of institutional inmates. This overhaul must be deep and far-reaching. Anything less would not achieve the complete po-tential which is available.

We cannot overemphasize the magnitude of the task. The problem of rectifying present inadequacies and introducing new concepts concurrently is fraught with complexity. Achievement of the objectives outlined will be a monumental undertaking. Any attempt to schedule the total implementation in less than a five year period would almost certainly doom it to failure.

The extent of the task may be appreciated from the following:

By the end of 1967,

- Some 2,700 inmates will be employed in industrial shops against the pre-sent 1,600.

- They should produce (at 40% of commercial levels) a sales volume of some $25 million against a present $2.2 million.

- They will require an additional 285,000 sq. ft. of floor space for shop use (105,000 sq. ft. in present institutions and 180,000 sq. ft. in new institu-tions). Warehouse space will be increased to 80,000 sq. ft. in present and 35,000 sq. ft. in new institutions.

- They will require some 860 new items of major equipment.

o

- Working capital requirements will increase from a present $1 million to $6-$7 millions.

To achieve this vast expansion a capital investment estimated at $3,000,000 will be needed for shops and warehouses. A further investment of $1,130,000 will be required for additional equipment. Shop instructor salaries will increase by $390,000 annually (at present salary levels).

These are tremendous objectives. Their importance, however, is dwarfed by the reform potential inherent in a properly reconstituted program.

In order to achieve this reconstitution it is recommended:

Regarding Government Policy:

1. That the Department of Justice ask the Federal Government for stronger support in aid of its sales programs - specifically in the area of the Federal and Provincial Government Departments.

Regarding the Inmate:

2. That classification procedures should be intensified to take maximum advantage of the reform potential in the individual.

3. That all programs be designed to occupy the inmate for not less than an average 7-1/2 hour day.

4. That inmate pay schedules be revised to provide 12 steps to a maximum of 60e per day.

5. That the Earned Remission Program be used as an added inducement for continued achievement.

6. That all institutional privileges be oriented towards inmate motivation.

7. That industries be selected for their rehabilitative value and by atten-tion to the skill markets of the basic area serviced by the institution.

Regarding the Organization:

8. That the Industries Division at Headquarters be reorganized to include the functions of Marketing, Production Planning and Control and Production Engineering.

9. That the Product Design function be drastically curtailed.

10. That the Industrial Division's requirements in the areas of finance and accounting be supplied by the Finance & Service Division.

11. That the Industrial Division specify its requirements in matters of build-ings and equipment.

xi i

12. That the Supervisor of Industries be reappointed Assistant Warden-Indus-tries and report to the Deputy Warden in order to consolidate, insofar as possible, all correctional programs.

13. That a Local Development Officer be appointed at each institution (or Regional Headquarters as required) in order to develop and service local sales markets.

Regarding the Shop Supervisory Staff:

14. That the ratio of inmates to instructors be not greater than 15.1.

15. That all instructors be trained in custodial work, operator instruction procedures and inmate counselling.

Regarding Managerial Controls:

16. That a program of Production Planning, Scheduling and Control be insti-tuted.

17. That a program of Standard Cost Accounting for the control of manufac-turing costs of stock items be instituted.

18. That a program of Job Costing for custom work of all types be instituted.

19. The adoption of the accounting philosophy that all charges which are solely the result of industrial activity be charged against it.

20. That a monthly operating statement using commercial accounting prac-tices in order to show the effects of depreciation and other long term debts be developed.

21. That an annual balance sheet for the proper portrayal of all industrial assets and liabilities be developed.

Regarding Shop Conditions:

22. That a uniform code of discipline for industrial shops be drawn up and enforced.

23. That a uniform safety code for industrial shops be drawn up and enforced.

xiii

24. That the program of operation zoning for training purposes as practised in some institutions be extended to all institutions.

Regarding General Administration

25. That the practice of using certain industrial shops as holding areas for inmates awaiting other assignments be discontinued immediately.

26. That the scheduling of inmate's daily activities take more serious con-sideration of the needs of industrial operation.

Although the tangible results of this program in terms of inmate reform cannot be predicted accurately it is possible to forecast the program's con-tribution to the reduction of total penitentiary operating costs.

A five year projection of operating costs and revenues, based on con-servative growth curves, shows this contribution at the end of each year.

Summary of Profit and Loss Forecast

YEAR

1 2 3 4 5

Sales 3.9 6.9 11.3 17.5 25.1

Cost of goods sold 2.0 3.5 5.6 8.8 12.6 Manufacturing costs 2.5 2.8 3.0 3.3 3.6 Sales & Administra- tion .1 .1 .1 .1 .1

Total 4.6 6.4 8.7 12.2 16.3

Net Contribution to Penitentiary Operations (. 7) .5 2.6 5.3 8.8

All figures are millions of dollars.

xiv

PREFACE

INMATE REHABILITATION

T HROUGH

CORRECTIONAL PROGRAMS

Evolution of the Philosophy of Correction

Although crime is as old as society, only in most recent times has ser-ious consideration been given to the possibility of the reformation of crim-inals through correctional treatment.

Traditionally, penology has been concerned chiefly with custody and re-tribution. The founding of the Philadelphia Society for the Alleviation of the Miseries of Public Prisons in 1787 was probably the first significant step in the direction of prison reform.

As a direct result of the society's activities the now famous Walnut Street Jail became the first American penitentiary. Subsequently much pro-gress has been made in correctional philosophy. A system of inmate classi-fication evolved and programs such as recreation, reading, spiritual coun-selling and productive labour systems were introduced. Concurrently, dis-ciplinary practices were progressively modified from brutal punishment to firmness and some degree of understanding.

The proponents of an enlightened correctional philosophy found, how-ever, the acceptance of the new concepts to be frustratingly slow. Against the ponderous resistance of politically oriented legislators, "old school" wardens and an uninformed and apathetic public, introduction of new correc-tional techniques up to the mid thirties, although substantial, was woefully inadequate.

On the subject of employment of prisoners in Canadian penitentiaries, the Royal Commission to Investigate the Penal System of Canada in its 1938 Report, stated, in part, that:

"the number of prisoners employed on productive labour is extremely low. Because the hours of labour are short, an undue proportion of the prisoner's time is spent in idleness.

Little of the employment provided in Canadian Penitentiaries gives the prisoner any sense of accomplishment in the perfection of his task, or, in fact, any inducement to finish the task that is immediately before him. The result is that those who are em-ployed perform their daily duties with a monotonous indifference."

Although similar inadequacies in all facets of correctional program exist even up to the present day, there is much greater acceptance of the philosophy and recognition of the need for improvement. The problem is being progressively compounded by increases in inmate population. Against this background, still greater team effort on the part of all Penitentiary Divisions is necessary if any headway is to be made toward the common ob-jective of inmate rehabilitation.

The Purpose and Scope of a Correctional Program

The purpose of any penitentiary correctional program is to transform criminals into effective citizens willing to and capable of earning a living in a socially accepted fashion. To achieve this purpose, a correctional pro-gram must affect the inmate in two ways. First, it must foster within him a genuine and stable desire to "go straight". Second, it must give the inmate sufficient working and social skills to enable him to "go straight" success-fully. Obviously, if a man has no wish to abandon a life of crime, the ac-quisition of new skills will be of very little benefit except perhaps to make him a more accomplished criminal. Conversely, if the desire to reform is created but the man, because of insufficient working or social skills, is not capable of earning a reasonable living, then his desires will be quickly frus-trated and he will soon return to a life of crime.

The subtle and difficult task of fostering a genuine desire for reform requires the combined services of the psychologist, the social worker, the institutional officer and the program instructor. Each in his own way can help to instill in the inmate a strong motivation for reform.

The task of teaching working and social skills to the inmate is of no less importance. The inmate must be able to earn a reasonable living through the utilization of specific work skills. Further, he must demonstrate cer-tain social skills - an ability to live and work with other people.

xvi

How can the correctional staff help to foster a desire for reform in the inmate? One approach is to confront the inmate with the direct logical argu-ment that crime does not pay for him personally. This type of approach can best be carried out by practical people such as program instructors who have gained the inmate's confidence. It is also probable that a desire for reform can be created subconsciously or indirectly. Such approach lies in the field of the psychologist and the psychiatrist. Because of its specialized nature we will not comment further in this area.

In order to be a socially capable and skillful individual, the inmate must learn to live harmoniously with both himself and with others. He must re-solve his own internal problems and acquire an acceptable degree of self-dis-cipline. Further he should be taught the social skills that will enable him to adjust smoothly to other people within this social environment. Group coun-selling, regular hours of work and a consistent, well-defined disciplinary program can all help to foster necessary social skills.

The development of economic ability is easier to describe. It consists of training the man to do a full day's work and, to do it confidently and com-petently.

All of these abilities are best acquired through experience in proper surroundings, supported by counselling as the need arises. Most of this counselling is "on-the-spot" by the program instructor. There are special needs, however, from time to time, which require the services of the spec-ialist -- psychologist, sociologist or chaplain.

Internationally, penologists seem to have arrived independently at sev-eral basic programs for the retraining of their inmates. Although the de-tails of how any of these programs might be carried out varies widely in practice, nevertheless, the core purpose remains relatively consistent throughout the world. These programs are as follows:

(a) Education (Scholastic Training)

(1)) Trades Training

(c) Industrial Work

(d) Institutional Maintenance

(e) Agricultural Work

(a Work Camps

(g) Non 'Work (Hospital, Psychiatric Treatment, etc.)

xvii

This array of programs is available in the Canadian System and would seem adequate to meet the needs of any individual inmate with whom the sy-stem has to deal.

All of these programs have one thing in common -- they are designed to develop a man's ability. None of these programs is designed, of itself, to work directly in the area of creating proper desire. Therefore, we can draw the conclusion that all programs will need the services of special counsellors for background work and, in addition, all programs will require that the pro-gram instructor must spend a significant proportion of his time in counsell-ing. The objective of the creation of desire can not be attained without coun-selling.

There is an academic principle which is widely accepted by international penologists to the effect that all inmates have some reform potential. In each case the primary need is to discover the trigger which will release this potential. Unfortunately, again internationally, it seems that practical necessity limits the size and scope of all retraining programs. This means that the correctional institution is forced to concentrate its available efforts on those inmates who show the most promise of reform.

Penologists, today, seem to be in general agreement (assuming that the individual inmate has the aptitude) that the reform potential of the various programs falls into the following order:

(a) Education

(b) Trades Training

(c) Industrial Work

(d) Institutional Maintenance, chiefly involving the trades, etc.

(e) Other Institutional Maintenance

(f) Agricultural Operation

(g) Work Camps

The classification "non-work", of course, cannot be listed here because of the special requirements which underlie a need for special treatment.

Whatever the program, however, we would reiterate the principle that any program which is not based on a full day's work is of extremely ques-tionable value.

xv iii

This principle has the unanimous endorsement of penologists the world over. Authoritative works such as "New Horizons in Criminology" by Barnes and Teeters, The Report of the Advisory Council on the Employment of Pri-soners in the United Kingdom 1961 and the Canadian Royal Commission Re-port of 1938 stress the need to recognize this principle.

We strongly recommend that the Service give serious consideration to this principle in all of its programs. Programs that disregard this princi-ple are destined to failure.

From the foregoing, it is obvious that there is one incontrovertible con-clusion which must be drawn and that is that penitentiary industry as a cor-rective progra,m is part and only a part of any correctional program in which an institution may engage. Thus there is a major requirement that the ind-ustrial program must be merged as part of the whole treatment and training operation. It cannot live by itself but must stand ready to train those people who are deemed most rieedful of this type of training.

It is our opinion that any program will fulfill its purpose more easily if it is based on the concept of inducing the inmate to adopt a program rather than being founded on the concept of requiring that the inmate must perforce engage in some correctional endeavour. The arguments are relatively straightforward because it is normal in any human being to resist direction under pressure. It is equally normal for most people to respond readily to incentives.

We, therefore, suggest that consideration be given to the following type of program approach:

(a) all inmates upon assignment to an institution and having been properly classified are advised of suitable programs that are available if they wish to engage in them, but no program assign-ment should be made at this time.

Rather,

(b) the inmate should be assigned to a program of relative inactivity. This does not preclude his being given work of a rather useless nature to perform in order to occupy his hands during his other-wise idle period. The major requirements, however, are that the work be of no purpose and that the pay rate be the lowest on the scale. During this period, the inmate should have no special privileges. The basic and obvious purpose for such an assignment is to place the inmate on the bottom rung of a program ladder.

xix

An inmate placed in such an assignment could be expected probably within a period of two or three weeks to ask for an assignment which would be more rewarding. This event, which consists of the inmate asking for something rather than being told what to do, is a fulcrum upon which a whole program can be hinged. The inmate is volunteering himself rather than be-ing pressured into something.

If an inmate voluntarily selects a goal for himself it is expected that he will be more willing to be guided through an entire program to achieve this goal. For instance, definite education levels might be established as a con-dition of certain shop employment. The inmate would be required, therefore, to achieve certain scholastic training on his way towards his goal.

Once a program has been elected, by an inmate, extra pay and other incentives can be used as inducements. To make such a plan fully effective, it will, of course, be necessary to have all programs scaled completely in their proper relationship insofar as possible incentives are concerned.

Incentives fall into three basic classes. The first of these and probab-ly the most important, would be time off for outstanding performance. Thus an inmate who enters willingly and wholeheartedly into a valuable program might find added inducement by being awarded some remission of his sentence.

The second incentive is the purely economic. Here it should be possi-ble to scale wages to conform with the desirability of the programs in rela-tion to the individuaPs need.

The third class of incentive might be called privileges. We are given to understand that there are many privileges which are highly regarded by the inmates while they are in an institution. An example is the distribution of tailor-made cigarettes. These are not only a convenience apparently but are also a status symbol. Properly planned, various status symbols can be added to the incentive program in an institution to increase the inmate's desire to follow the course of activity which will be most beneficial to his particular needs.

From the foregoing, it can be readily appreciated that a combined force of all the incentives available in an institution, properly applied, can be used to lead the inmate through a required program. This will avoid all the pen-alties attached to the alternative of trying to pressure an inmate into a desir-able program.

PART ONE

PLANNING

FOR

AN INDUSTRIAL PROGRAM

CHAPTER ONE

MANPOWER UTILIZATION

DESIRABLE INDUSTRIAL SKILLS

Guided by the primary objective of rehabilitating penitentiary inmates, the first steps were tà determine those industries which would best prepare inmates for acceptance in the labour market.

Consideration was given to both the free employment market which exists and to the qualifications of inmates to satisfy those markets.

Potential Labour Markets

The rapid advance of industrial technology since World War II has created significant changes in the character and the mbç of the labour mar-ket. Basically, the demand for skilled technicians is increasing and the demand for semi-skilled and unskilled workers is diminishing.

For example, National Employment Service officers report that the demand for heavy construction equipment operators and repairmen con-sistently exceeds supply. Similarly, specialist automotive mechanics (automatic transmissions etc.) are always in demand. The supply of non-specialist journeymen mechanics, however, exceeds the demand, particularly in the winter months.

It is stated that, in general, today's employers consider academic standing an important criterion of employability in the absence of technical skill. Examination of the following statistics gathered by the Senate Survey of Employment Conditions in 1960 underscores in antithesis the character of the labour market.

1

Percentage Distribution of Male Registrants by Education Level

Percentage

Some Primary School or less 28 Finished Primary School 27 Some High School 30 Finished High School 9 Some College or Better 6

Total 100

TABLE I

Levels of Skill or Training of Male Registrants with the

National Employment Service, September 1960 _

Numbe r % _

Not technically trained or qualified 88,900 39 Partly technically trained or qualified 72,600 32 Completely technically trained or qualified 64,000 29

Total 225,500 100

,

TABLE II

From the above tables it will be seen that 71% of unemployed males have insufficient training to compete in the journeyman or specialist labour market and that 85% of unemployed males have less than full high school education.

The labour market was summed up in the Final Report of the Special Committee of the Senate on Manpower and Employment June 14, 1961, as follows:

"Nothing has impressed the Committee more than the incidence of unemployment among young people, the unskilled, and the inadequately educated. This has been brought out repeatedly, both by the Committee's own research staff and by other witnesses. Every study that has been made reveals that in the economy of today the emphasis is increasingly on skill and training, and every forecast that has been prepared indicates clearly that this trend will continue in the years ahead. The opportunities for unskilled and semi-skilled workers are becoming more and more limited as time passes."

-2

Although diminishing, there is and will continue to be a need for labourers and semi-skilled workers in the Canadian economy. However, in a "buyer's market", selection will be made obviously on the basis of the individual applicant's demonstrated ability to work effectively in an industrial environment.

Thus, it can be concluded that employment criteria rank in this order:

(i) technical qualification academic preparation

(iii) merit in unskilled and semi-skilled work.

Qualifications of Inmates

The only source of information regarding prior trade and technical qualification of inmates is that obtained from the admission interview. Although the validity of this information is suspect, it is assumed that inmates would be inclined to exaggerate rather than minimize their skills and abilities. On this basis,the proportion of technically qualified persons indicated in the following table would be maximum. This information comes from the Annual Reports of the Commissioner of Penitentiaries for the years 1958 through 1960. Manufacturing and mechanical operations were identified as being the only ones that would require technical qualification.

TABLE III

Occupations of Male Inmates on Adrojano

Prior Trade 81 Technical

Total Manufacturing Year Admissions & Mechanical Other or None

1958__

2,929 205 2,724 _

1959 2,975 179 2,796

1960 3,332 189 3,143

Total 9,236 573 8,663

% 100% 6% 94%

3

Percentage Distribution by Education Level

N. E.S. Penitentiary Registrants Inmates

Some primary school or less 28 48 Finished primary school 27 22 Some High School 30 25 Finished High School 9 5 Some College or better 6 -

Total 100% 100%

It is not possible to determine the number of inmates coming from manufacturing and mechanical occupations that could be considered to be competent. Obviously, considerably less than 6% of the total inmate population would fall in this category. Experience at the institutions indicates the proportion is almost negligible.

The following percentage distribution of Male Inmates by Education Level was developed from statistics published in the 1960 Annual Report of the Commissioner of Penitentiaries. The table below compares this distribution with that of N. E. S. registrants. (Table II)

TABLE IV

In summary, therefore:

(0 the typical inmate at best is qualified to compete in the free market only with the lower strata of available labour -- and then without consider-ing the stigma of penal servitude.

(ii) In a preponderant number of cases it would be impossible to raise the inmates' technical or academic qualifications to a competitive level during the incarceration period because of the shortness of sentences and the meagreness of background.

These constitute the group that would appear to benefit most from an industrial program designed to develop qualities in the individual to satisfy the third criterion of employment, namely:

"merit in unskilled and semi-skilled work".

A penitentiary industry, in order to develop competence in unskilled and semi-skilled work, must be one in which the work of individuals can be measured both for quantity and quality. It must also have a product that can be completely fabricated by unskilled and/or semi-skilled labour

-4-

and it must be compatible with the special restrictions of the institutions.

With these considerations in mind, current DBS statistics of Employ-ment in Principal Industries by Province were examined and a selection was made of those industries that satisfy the above requirements. Table V lists these industries ranked in order of the proportion of men employed. This ranking was performed in order to indicate the larger labour mar-kets in each region.

TABLE V

Regional Ranking of Principal Industries By Proportion of Male Employees

Principal Industries Mar. Que. Ont. Man. Sask. Alta. B. C. _

Furniture 1 1 1 3

Clothing 2 4 3

Fruit & Vegetable Preparation 2

Sheet Metal 3 4 2 2 3

Leather Footwear 4

Concrete Products 4 2

Sash Door & Planing 1

Fish Processing

In addition to selecting those industries which best satisfy the criter-ion of employment opportunity (as shown in Table V) there are certain other considerations which had to be explored. For instance, the indust-rial work must be purposeful and it should be typical of that found in industry. It should not demand skills beyond the capability of the average inmate nor demand training programs which cannot be fulfilled within the period of the sentence.

-5

6

THE INMATE MANPOWER POOL

The total male prison population at May 30, 1962 was 6,854 and it con-tinues to grow by approximately 6% each year. The anticipated population in 1967 is 9,400.

The future inmate population levels are illustrated in more detail in Figures I and II in the Appendix. Figure II, which was prepared by the Penitentiary Service, shows the penitentiary populations by region and classi-fication up to the year ending March 31, 1962 and forecasts the years ending 1963 to 1967 inclusive.

The Distribution of Inmates by Location and Security Level

The distribution of inmates by location and security level as reported on the Weekly Situation Report for the week ending May 25, 1962 is summar-ized below:

TABLE VI

Custodial Penitentiary Populations at May 25, 1962. Per- Classifica- Atlantic Quebec Ontario Central, Prairie Pacific Total centage

tion

Maximum 627 1,122 946 510 755 640 4,600 67

Medium 818 933 * 1,751 26

Minimum . 103 108 109 183 503 7

Total 730 2,048 1,988 510 755 823 6,854 100 % Population

'

* Excluding 120 Women

Although the distribution of inmates is 67% to maximum security, 26% to medium security and 7% to minimum security institutions, this does not reflect actual security classifications. Ftather it is indicative of institutional capacity in the three Custodial levels. For example, there are no medium or minimum security facilities available in either the Central or Prairie Regions with the exception of the farm installations.

Facility Classification Security Level

Comparison of Actual Distribution to Desirable Distribution

Maximum

Medium

Minimum

67%

26%

7%

25%

50%

25%

Actual security classifications of current inmates are not available. However, the Correctional Planning Committee comments on the three levels in its Report of June 8, 1960 as follows:

Maximum Security (p. 35)

"We do not consider that more than 25% of the inmate population require such restrictions"

Medium Security (p. 40)

"The medium security category embraces a majority group with an extremely wide behaviour pattern"

Minimum Security (p. 41)

"Physical restraints tend to impede rather than promote the process of refotmation for as many as 25% of the penitentiary popu-lation".

A comparison of actual distribution to desirable distribution (Table VII) shows that existing facilities will not accommodate inmates in accord-ance with the current security classification philosophy.

TABLE VII

It is evident from the above that the security level of the institution which houses the inmate is not a valid criterion on which to predict reform potential. Rather, characteristics of individual inmates must be

used as indicators of future conduct expectancy. In other words, the choice of program for the individual inmate must be made by qualified

7

IL

classification officers using more comprehensive testing procedures. *

An Analysis of Inmate Characteristics

One of the requirements of the study is "to determine the size and characteristics of the manpower pool available for penitentiary industry". This can only be done by first assessing the manpower requirements of the other programs and activities. For instance, most penologists indicate that programs of academic education and vocational training have greater reform potential than does industrial training. Also there is a basic requirement at each institution for general maintenance services. Finally, farms must be staffed. When such manpower needs have been determined the balance of the population may be considered available for industrial training.

As stated earlier the actual assignment of an inmate to a program must be based on that individual's attributes. Nevertheless statistical analysis of present inmate characteristics must be used to forecast prob-able program populations.

The characteristics selected for analysis are number of previous commitments, length of sentence, age and educational level. The com-bination of no previous commitment with short sentence has been used as a general indicator of high reform potential. As either of these factors increase it is considered that reform potential is reduced. The use of age and educational level are self-explanatory.

The characteristics of the inmate population were drawn from a study of some 3000 recent admissions to the various institutions. The summary of this information is portrayed in Table VIII.

The first problem is to determine the population which would benefit most from a program of academic education. Education serves two functions. First it is generally regarded as having the most reform poten-tial. It should therefore deal with those inmates who have a high potential for reform. Also level of education has been identified as one of the major requirements specified by employers. The desired level, however, is towards the upper high school grades.

* See Report on Classification Procedures in the Kingston Area, Schedule A in the Appendix.

8

The short sentence (less than six years) associated with the high poten-tial for reform militates against raising the average candidate's educational level more than two or three grades. This indicates that the candidate should have completed at least Grade 8 prior to commitment if this program is to be of any real benefit. Also he must be young enough to benefit from the program after his release. In other words he should be under 25 years of age.

From Table VIII it will be seen that the number of inmates with no previous commitment who are serving sentences of less than six years, who have already achieved Grade 8 and are under. 25 is 305 or 10% of the sample population.

What of the illiterates? At the moment these are a serious problem at some institutions. They, of course, cannot be ignored. It is probable that here lies the need for a special'program. However the futtirelkaiih-could be expected to be quite different. The public education system is growing and has been fOr the last ten to fifteen years. It can be expected, therefore, that the rate of illiteracy in newly admitted inmates will show a steady decrease resulting, in the foreseeable future, in the almost com-plete elimination of the problem. This trend is already apparent in some geographic areas.

A vocational program should be populated with candidates who have a high potential for reform, who are ,young enough, generally, to get trade certificates but who do not have enough education to qualify for academic programs. This group is represented by those inmates who have no pre-vious commitment, are serving sentences under six years, are under 25 years of age and have less than Grade 8 education. Table VIII indicates that there are 665 inmates in this category or 22% of the sample population.

1„.11

-9

TABLE VIII

Pertinent Statistics - Newly Admitted Inmates

No Previous Commitment One or More Previous Commitment Total

Sentence Under Grade 8 Over Grade 8 Under Grade 8 Over Grade 8 Under 25 'Over 25 Under 25 Over 25 Under 25 Over 25 Under 25 Over 25

2-3 years 500 280 215 1.70 150 320 50 170 1,855

3-6 years 165 140 90 76 95 200 30 130 926

Over 6 years 35 50 20 40 , 16 70 5 40 276 ..

An analysis of present inmate allocation (Table IX) indicated that 8. 8% of the overall population is unassignable. This factor applied to the aca-demic and vocational programs would indicate that the program assignment percentage would be 9% and 20% respectively.

The populations required in institutional maintenance and agricultural programs were determined in an entirely different fashion. These opera-tions are now in progress and the amount of available work is readily dis-cernible. Special field analyses were, therefore, conducted to develop formal engineering estimates of basic manpower requirements in these activities.

These analyses were based on the already stated philosophy that any inmate will benefit by having a full day's work to perform. (The full day's work under institutional conditions has been established as 40% of the level achieved by the equivalent worker in society).

As a result of this field study, it was estimated that a force of approxi-mately 10% of the inmate population is adequate to mainta.in a minimum security institution (disregarding special projects). Similar estimates for medium and maximum institutions indicated that 30% of the population would be required for this task. It was also estimated that a force of approximately 4% of the population is adequate to maintain agricultural activities (See Analysis of Farming Operations - Schedule B in Appendix).

Seasonal Occupations

It is assumed that inmates assigned to agricultural and construction occupations on a seasonal basis will be so assigned through the classifica-tion process for rehabilitation purposes. It would be our recommendation then that suitable related training programs be provided in off season periods to round out their training.

In summary, the target distribution of all inmates is as follows:

Unassignable 9 Institutional Maintenance & Service 29 Agriculture 4 Industrial 29 Vocational Training 20 Academic Training 9

100%

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The Current Assignments

To determine current inmate assignments to the various programs and activities a questionnaire was circulated to all institutions. The results from it are shown in Table IX.

TABLE IX

Inmate Assignment as at May 30, 1962

Academic Training 111 1. 6

Vocational Training 444 6. 4

Agriculture 492 7. 0

Construction & Buildings 620 8.8

* Institutional Maintenance & Service 3,033 43. 4

Unassipable 614 8.8

Industrial Shop (Available) 1 675 24 0 , .

Total 6,989 100.0%

* This group includes assignees to utilities and maintenance occupations as well as the institutional service activities such as food storage, preparation, and issue; stores and clerical assistants, janitors, etc.

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THE ALLOCATION OF INMATES

The transfer of inmates from current assignments to those proposed will be a difficult task. New facilities will be required. Additional Voca-tional and Academic instructors must be recruited. New training programs will have to be developed. Managerial difficulties would be minimized by staging such a program over a five year period. A suggested program is portrayed in the following table. (Table X)

TABLE X

Proposed Staging of the Redistribution of Inmates by Percentage

YEAR

Assignments Present 1 2 3 4 5

Unassignable 8.8% 9.0 9.0 9.0 9.0 9.0

Institutional Maintenance % R./ Service 43. 4% 40.0 38.0 34.0 32.0 29.0

Agriculture 7 0% 6. 5 6. 0 5. 0 4. 5 4. 0 t(

Industry 24.09b 25.5 27.0 28.0 28.5 29.0

Vocational Training 15.2% 16.0 16.0 17.0 18.0 20.0

Academic Training L6% 3.0 4.0 : 7.0 8.0 9.0

TOTAL 100.0% 100.0 100.0 100.0 100.0100.0%

During the five year period required for this redistribution program the inmate population is expected to increase as previously forecast. The com-bined effect of redistribution and expansion is shown in the next table. (Table

- 13 -

TABLE XI

Proposed Program Assignment for all Inmates for 5 Year Period

YEAR Assignments 1 2 3

Unassignable 670 710 750 800 850

Institutional Maintenance & Service 2,980 3,000 2,850 2,840 2,730

Agriculture 490 470 420 400 380

Industry 1,900 2,140 2,350 2,530 2,730

Vocational Training 1,190 1,260 1,420 1,600 1,870

Academic Training 220 320 590 710 840

TOTAL POPULATION 7,450 7,900 8,370 8 , 880 9,400

THE PRODUCTIVITY LEVEL OF PENITENTIARY INMATES

The planning of a manufacturing enterprise cannot be completed without some estimate of the productivity level, or work pace, which the employees will achieve.

In planning a penitentiary industrial program this estimate is important from two points of view.

Of primary importance is the matter of shop atmosphere. This, desir-ably, should be as close to commercial conditions as possible. Therefore some sense of "hustle and bustle" is required and this is only achieved by promoting as high a work pace as possible.

Of equal importance is the necessity of estimating the volume of produc-tion forthcoming in order to do the necessary economic planning. An esti-mate of the productivity level will permit the forecasting of the sales volume required to support the enterprise.

Work pace is affected by several major factors. These are the facilities available, the conditions under which the work is carried out, the effective-ness of supervision and the inmate himself.

- 14 -

The facilities being planned will provide adequate and suitable shop space and equipment of a basic general purpose nature. This aspect, there-fore, would have no lowering effect on work pace.

The conditions under which the work will be carried out when plans have been implemented will be quite adequate. The working day will approach a normal length. Shop discipline will be maintained. There will be an ade-quate amount of work, and, it is to be hoped, a reasonable working pace. Most importantly, shops will no longer be overstaffed or overcrowded. Fu-ture productivity levels, therefore, should not suffer because of conditions.

Supervisory forces will have been increased adequately as far as num-bers are concerned and, given further training, will be better equipped to lead the shop force to a higher work pace.

This leaves, as the major determinant, the matter of the inmate him-self. Aptitude, past experience, willingness to conform, general attitude, morale - all of these must be considered in estimating the productivity level.

It must be assumed that many of the inmates will have the necessary aptitudes. Industry finds that these exist in a very broad spectrum of the population and there is no evidence to indicate that a similar circumstance does not exist in the inmate population. It must be further assumed that the classification process will identify those inmates with suitable aptitudes.

Past experience, on the other hand, will be, to all intents and purposes, non-existent. This, at least, has been the situation up to this time.

Willingness to conform, we think, will be low. Many inmates are pre-pared, of course, to conduct themselves within the framework of the insti-tution's rules and regulations. However, the development of a contributory, cooperative attitude is something that will take time. Until it is achieved there is no real conformity.

Morale and general attitude are probably lowest on admission and rise gradually as the sentence approaches termination. Willingness to conform realistically probably follows the same pattern. It is interesting that this pattern coincides with that of the security classification itself.

From this we conclude that productivity level and security classifica-tion will be directly proportional.

- 15 -

It is extremely doubtful, however, that institutional productivity levels will approach those of the industrial world outside the institution. Our estimate is that the most optimistic target would be to achieve 50% of what is generally regarded as a satisfactory work pace and this only under the best of conditions.

In the overall picture we estimate that (using average industry as a criterion) the productivity levels to be achieved will be as follows:

Degree of Security % Level of Productivity

Maximum 25 - 35

Medium 35 - 45

Minimum 45 - 50

From the foregoing it is reasonable to estimate that the productivity level of the penitentiary industries will average 40%.

An industrial worker in Canada will produce from $20,000 to $35,000 in gross sales annually or an average of $23,000. If institutional industry pro-duces at 40% of the national average then the productivity level will average $9,200 per inmate. This figure will be used throughout the remainder of the report in estimating sales requirements, etc.

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CHAPTER TWO

THE PRODUCT

Even though certain industries may be desirable from the point of view of training and marketability of skills they can only be considered if there is a sufficient market to absorb their end product. This latter is no less a problem than the determination of the desirable industries.

Knowledge of markets is vital to a manufacturing enterprise. The size, the location, product reqàirements, customer reaction - all are factors of major significance when planning the product line of an industry.

There are, of course, markets which a penitentiary industry cannot enter by reason of lack of capability. Equally, there are markets which should not be entered by virtue of the fact that the industry has low rehabili-tative value. In short, the selection of markets for penitentiary industries is limited by certain restrictions.

In addition to the two restrictions noted above, there are certain others which must be recognized.

The security level necessary in the institutional shops will preclude industries which require the presence of certain materials such as vola-tiles, explosives and so forth.

The basic abilities of the inmates must also be taken into account. Neg-ative attributes (such as low educational achievement, lack of prior training or experience) will militate against the selection of some industries.

There are certain legislative restrictions also. These do not deal with the type of product but rather with the customer. The Penitentiary Service Regulations, which were approved by the Governor General in Council and effective April 1, 1962, restrict the disposal of penitentiary products to:

"(a) any department, branch or agency of the Government of Canada, the government of a province or a municipal government and

- 17 -

(b) to any charitable, religious or non-profit making organization, but shall not be disposed of to private individuals in competition with private industry".

It will be realized that this places no significant restriction on volume or product. The total procurement expenditures of the Federal Government Departments alone for the 1959 fiscal year (according to the Public Accounts of Canada) totalled $1,431.6 million which is approximately 4% of the 1959 gross national expenditure. * These Federal Government Departments pro-cure every variety of product conceivable so there is in effect no real mar-ket restriction to penitentiary produced product.

There are various other restrictions to be recognized in considering the nature and extent of the market that is available. For instance,

- there must be reasonable prospects of a continuous supply of similar work,

- the manufacture of the product must not interfere unduly with a part-icular segment of private enterprise or free labour,

- there should be no undue interference with workshops designed for the blind and disabled persons.

THE MARKET SURVEY

In order to gain the necessary knowledge of potential markets a broad study was made. The first step in this study was a survey of available data regarding the Canadian Penitentiary Service, its products, the indus-try, the market, and advertising.

The information was gleaned from discussions with senior administra-tive personnel in the Canadian Penitentiary Service, internal records of the Service, and from the published material available in libraries and trade papers. In this step, we attempted to obtain all the information possible about the problems of the Service and the environment in which the analysis was to be made.

* Gross National Expenditure

Gross national expenditure measures the same aggregate as gross national product, namely, total production of final goods and services at market prices less imports of goods and services, including net payments of interest and dividends to non-residents. This is the measure of actual Canadian production.

- 18 -

Some of the source background material was developed from corres-pondence and discussions with various penal authorities including the following:

- Dr. D. Glaser

- Department of Sociology and Anthropology, University of Illinois, Urbana, Illinois.

- Mr. Myrl E. Alexander - Director, Center for the Study of Crime and Corrections, Southern Illinois University, Carbondale, Illinois.

- Mr. A. Graham - Deputy Minister, Department of Reforms Institutions, Province of Ontario, Toronto, Ontario.

- Mr. Preston G. Smith - Associate Commissioner, Federal Prisons Inc. , U. S. Department of Justice, Wash-ington, D. C.

- Mr. Bernard W. Kofsky - Chief, Research and Publications Section, Bureau of Social Affairs, The United Nations, New York, N. Y.

- Mr. T. W. Markley - Warden, United States Penitentiary, U. S. Department of Justice, Terre Haute, Indi-ana.

- and various staff members of the Canadian Penitentiary Service at Ottawa, the federal penitentiaries at Kingston, and St. Vincent de Paul.

Informal discussions were also held with both consumers and non-con-sumers. This, to get an impartial point of view and a "feel" for the prob-lem. In short, it was necessary to crystallize the central problem.

The specific procedure for carrying on the remainder of the investi-gation was then designed. The types and sources of data to be obtained were determined, and the size of the sample to be employed was selected. Information was developed through:

- detailed studies of 1961-62 departmental purchase requisitions having a total value of $500 or more,

- detailed studies of all purchases for the 1961-62 fiscal period,

- 19 -

- discussions with senior level staff in the federal govern-ment departments, municipal governments, school boards, universities, hospitals and churches,

- updating previous market surveys carried out by the Industries Division or, a combination of all of these means.

The scope of this survey included investigations with the following groups:

Federal Government Departments and Agencies

The Canadian Penitentiary Service The Department of Citizenship Immigration The Department of Mines and Technical Surveys The Department of National Health and Welfare The Department of Northern Affairs and National Resources The Department of Defence Production The Department of Public Works The Department of Veterans' Affairs The Crown Assets Disposal Corporation The National Capital Commission The Post Office The Royal Canadian Mounted Police

Provincial Governments and Agencies

The Department of Reforms Institutions, The Province of Ontario, Toronto, Ontario. The Thames Valley Conservation Authority, London, Ontario.

Municipal Governments, Including School Boards

The City of Brantford, Ontario. The City of Toronto, Ontario. The Etobicoke Board of Education, The Township of Etobicoke, Etobicoke, Ontario. The London Ontario Separate School Board, London, Ontario. The North York Board of Education, The Township of North York, Willowdale, Ontario. The Metropolitan Toronto Parks Commission, Toronto, Ontario.

- 20 -

Churches, Hospitals, Universities and other Non-Profit Organizations

Carleton University, Ottawa, Ontario. The Brantford General Hospital, Brantford, Ontario. The Boy Scouts Association of Canada, Ottawa, Ontario. The United Church of Canada, Toronto, Ontario. The Canadian Universities Foundation, Ottawa, Ontario.

Historical Background

The potential market for penitentiary produced products has expanded dramatically over the past 40 years. There are four principal reasons for this growth.

(a) The terms of reference providing for both the manufacture and dis-posal of penitentiary produced products are more positive. The Order in Council P.C. 1760, dated June 1st, 1921, was the first document of a general nature recognizing the need for inmate employment but, this document contained two major restrictions. First, product manu-facture was limited to any item which could be produced within the then range of facilities and second, product disposal was limited to govern-ment departments or branches.

The Penitentiary Service Regulations on the other hand approved by the Governor General in Council effective April 1, 1962:

- do not limit manufacture necessarily to existing facilities, - expand the market place available for products to include govern-

ments of a province or a municipal government as well as to any charitable, religious or non-profit organization, and

- recognize the positive benefit to be derived from an industrial pro-gram designed to facilitate rehabilitation.

(b) The Canadian Penitentiary Service staff have conducted general market surveys in 1939, 1942, 1954, 1956 and 1960. In 1956 the detail-ed survey of ten departments was completed with the assistance of a Cabinet Committee on Employment of Penitentiary Labour. This survey indicated a potential market of $6 million but did not result in any signi-ficant increase in the volume of industrial production.

In 1960, the Assistant Commissioner of Penitentiaries conducted a survey of twelve federal government departments which were selected because they represented the major purchases of supplies related to potential penitentiary production. This survey indicated a potential mar-ket exceeding $12 million annually.

- 21 -

In spite of the sizeable market which was found to exist the volume of production for Government Departments and Agencies has not increased appreciably over the years. The following statis-tics attest to this.

Canadian Penitentiary Service Industrial Production

For Government —} To Fiscal Year Departments & Agencies In Total To Total

($000) ($000) 1960-61 @ 395 @1,111 36

1959-60 402 1,287 31

1958-59 367 1,122 33

1957-58 355 1,083 33

1956-57 364 1,038 33

1952-53 230 846 27%

While the percentage of industrial production for Government Departments and Agencies has ranged from 31% to 36% in the past five years, it must be remembered that a very significant portion of this is accounted for by one contract with the Post Office for the manufacture and repair of canvas mail bags. During this period canvas bag manufacture and repair represented roughly two-thirds of the total industrial production for Government Departments and Agencies. The balance of the work is made up primarily of many small jobs for other Government Departments.

(c) The third reason for the growth is the sheer magnitude of federal government procurement expenditures. For the past five fiscal years for instance, these have averaged in excess of $1.4 billion. (Source - Public Accounts of Canada)

(d) The fourth reason for the growth is the growing acceptance of the concept of prison industrial programs as an effective means of pro-moting the moral and social rehabilitation of the inmate. This devel-opment has created and will continue to create penitentiary industries. These will require enlarged markets.

@ Represents value at cost. Information obtained from internal records of the Industries Division.

- 22 -

Results of the Survey.


Attitude - The eleven departments and agencies contacted during this field study co-operated fully by making available information relative to their annual requirements. This group represents the major pur-chasers in the government service.

The general concensus of those who had pterchased penitentiary pro-ducts recently was that:

- the quality of the products received was at least as good as generally received.

- the delivery promise was abnormally lengthy and it was usually not met,

- the cost of the product was not appreciably better than that obtainable from a commercial concern and in some instances was higher. .

All of the departments appered to be willing to negotiate further busi-ness if their departmental specIficiations are met, if realistic deliveries are established and met, and if thW 'cost of the product is reasonably attrac-tive.

The Potential Market in the , Federal Government

Federal Government Departments and Agencies represent a vast mar-ket for penitentiary produced products.

The sample survey carried out ldentifleda potential market in excess of $10 million. This amount represents only a small portion of the total gov-erment procurement expenditures. *

* Federal Government-procurement is defined as expenditure on the five basic categories of materials and supplies, equipment, services, con-struction and the leasing of accommodation. It does not include with total government expenditure which includes such items as salaries and wages, allowances, pensions, sùbsidies and other special payments.

- 23 -

TABLE XII

Estimated Annual Market for Penitentiary Production by Specific Product Categories Based on Sample Survey of Government Departments and Agenc ies


Northern The Royal Product Canadian Citizenship Mines and National Affairs & Canadian

?enitentiary and Defence Technical Health & National Public Veterans The Post Mounted Category Service Immigration Production Surveys Welfare Ftesources Works Affairs Office Police Total

Belts, Leather $ 1,550 $ $ $ $ $ $ $ $ $ $ 1,550 Blankets, Wool 6,000 6,000 Broom & Brush

Products 200 360,000 100 1,500 2,500 5,500 14,000 2,200 100 386,100 Brushes, Paint

& Varnish 3,380 1,100 20,000 300 900 25,680 Canvas Products - Tents 18,000 8,500 26,500 - Tarpaulins 200,000 11,200 5,500 216,700 - Other 210 1,415 1,150 3,500 940,000 1,500 947,775

Clothing & Textile Products 61,700 900 750,000 16,350 21,350 7,800 250,000 443,000 65,000 1,616,100

Fibre Cases 14,000 14,000 Flags 40,000 40,000 Folding Metal Beds 610,000 610,000 Furniture - Various 90,600 1,100,000 2,400 43,300 114,500 706,200 20,000 265,000 6,500 2,348,500 Life Jackets 1,000 1,__ Lockers 12,400 325,000 337,400

-Material Handling Equipment 15,000 66,000 81,000

Metal Prod. Var. 20,605 604,000 27,350 43,550 82,900 1,280,006 11,500 366,700 3,200 2,439,805 Misc. Wood Prod. 1,200 21,550 24,400 4,650 8,500 1,700 62,000 Mops 5,000 5,000 Nets 24,200 24,200 Playground and Rectnl. Equip. 27,550 25,000 1,950 54,500 Pre-Fab. Bldgs. 340,020 340,000 Repairs, Furn.

Canvas 148,100 148,100 Shoes, Boots an

Slippers 15,690 105,000 18,000 40,000 178,690 Sleeping Robes 14,000 14,6i5U-- Trailers 18,00-0- 16,400 52,000 86,400 Wipers 1,700 1,700

TOTAL 106,035 162,950 3,504,000 129,015 155,800 583,000 2,244,600 326,400 2,082,900 118,000 10,012,700

The total estimated annual market for repetitive type items for these departments and agencies contacted is shown in Table XII. This summary classifies the products by certain general categories as well as by depart-ment or agency. A more detailed listing of products is shown by department in Schedule "D" in the Appendix.

The total estimated market of $10 million is $2 million less than the $12 million indicated as a result of the 1960 market study. This difference does not reflect a reduction in the size of the market but rather a difference in selecting the departments and products to be included.

The National Capital Commission

An estimate of the annual requirements of the National Capital Commis-sion was not available. However, this market is attractive and provides a good variety of products for manufacture. During the three year period from April 1, 1959 to March 31, 1962 sales to this Commission by the Cana-dian Penitentiary Service totalled $6,000. The products included trash bas-kets, fireplaces and picnic tables.

As a result of discussion with N. C. C. personnel, certain other products were identified which could be produced by Penitentiary Industries. These included the following:

- pre-cast concrete tubs for plants

- patio paving stone

- benches - pine, cedar or oak

- permanent benches - pre-cast concrete and wood

- snow fences

- shelters for roadside rest areas

- signs - warning, regulatory, guide, etc.

- free form climbers for playgrounds

- hand buggies

- wood pickets - grade, and bench mark.

- 25 -

In connection with their campsite programs for the green belt areas in 1963 and 1964, the Commission anticipates a requirement of 250 picnic tables and 60 outside fireplaces each year. While the N.C.C. are not pre-sently using shelters for roadside rest areas or free form climbers for parks and playgrounds, they expect they will have requirements in this area within the next five years.

Inasmuch as other parks commissions have requirements similar to this, the parks market should include other groups, such as the following:

- The Metropolitan Toronto Parks Department

- The Montreal Parks Department

- The Niagara Parks Commission

- The St. Lawrence Seaway Authority

- The St. Lawrence Development Corporation

- The Thames Valley Conservation Authority

- and other Provincial and Municipal Parks Departments

Provincial Government Departments and Agencies

Those contacted included the Province of Ontario and the Thames Valley Conservation Authority in London. Discussions with both these groups re-flected a favourable attitude towards products produced by either federal penitentiaries or provincial reformatories. In view, however, of the sub-stantial industrial program of the Department of Reform Institutions in the Province of Ontario the Ontario Government is not an unrestricted market' for federal penitentiary products. It is conceivable however, that products produced by federal institutions could be sold to the Province of Ontario where such products do not compete with those produced by Ontario Reforma-tories.

While the market open to Penitentiary produced products in Ontario is limited, a market could conceivably be developed in those remaining pro-vinces which do not have a well developed reformatory industrial program.

Municipal Governments and School Boards

Attitude - The six organizations contacted are quite representative of municipalities and school boards in Canada. The group included munici-palities representing the larger Canadian cities over 100,000. The

- 26 -

school boards represented both the Public and the Separate school sys-tems. They have sizeable equipment and supply budgets and may or may not have purchased from the Canadian Penitentiary Service.

The general concensus of those who had purchased penitentiary pro-ducts recently was that:

- the quality of the products received was at least as good as commercial products.

the cost of the product was satisfactory.

All of the organizations contacted were agreeable to negotiating fur-ther orders providing their specifications are met, their delivery re-quirements are met, and the cost of the product is reasonably attrac-tive.

The Potential Market in Municipal Governments

Municipal Governments (including school boards) represent a sizeable market for penitentiary produced products. However, considerably more effort will be required to develop this market than should be necessary with the federal government departments and agencies.

Municipalities have requirements in many areas. These include sup-plies for departments such as Parks, Fire, Public Works, Police, Water, Sewage, Roads, Welfare and Housing. In addition they have supply require-ments for such commissions as Public Utilities, Hydro and Public Transit.

Their individual requirements include products such as the following:

- outdoor barbecues

- picnic tables

- trash baskets and waste receptacles

- park benches - pre-cast concrete and wood - rustic wood

- signs, warning, regulatory, guide, street

- outdoor recreational equipment

- 27 -

- wheelbarrows

- boots and shoes - policemen and firemen

- sheets, pillow cases

- wood barricades

- shirts, suits and uniforms - policemen and firemen

- etc.

School boards also have requirements in many areas. The Canadian Penitentiary Service already enjoys a good relationship with many school boards. This results from the manufacture and sale of climbers for ele-mentary schools. Our contacts with three school boards during the market research study confirmed the interest which they have in penitentiary pro-duced products.

The school board purchasing agents displayed considerable interest in sporting and recreational equipment. The reason for this interest was threefold. First, a number of items must be imported and the cost has been prohibitive; second, on recreational equipment, the per pupil expenditure has been increasing steadily over the years and is expected to continue; third, the Canadian Penitentiary Service has produced climbers for school boards which have been quite satisfactory in terms of quality, price and delivery.

The range of suitable products purchased by school boards include such items as the following:

- lockers

- garbage cans and waste receptacles

* - music stands

- metal folding and stacking chairs

* - map and display rails

- wood desk trays

- metal tubular nesting chairs

- library trucks, cabinets, trays, tables and shelving

- 28 -

- woodworking benches, drafting tables

* - wooden kindergarten storage units

* - wooden kindergarten blocks (creative blocks)

- baseball backstops

- portable bleachers for stadia and gymnasia

* - basketball backboards

- tether posts

- goal posts for soccer and football

- high jump and pole vault standards

- gymnasium mats

- kindergarten sleeping mats

* - baseball bases

- balance benches

- vaulting troughs

* - hurdles

- school seating, including chairs and desks

- convertible benches for cafeterias and libraries

- etc.

* Imports

- 29 -

Churches, Hospitals, Universities and other Non-Profit Organizations

The change in the Penitentiaries Act now permits the sale of peniten-tiary products to these organizations. This represents a large market which previously has not been penetrated.

Attitude - The decision to avail themselves of penitentiary produced pro-ducts would depend primarily on price, quality and delivery. There was no indication of reluctance to purchase penitentiary products.

The Potential Market

The market represented by this group is comprised of a large number of organizations. While the entire market is sizeable, considerable effort will be necessary to develop any reasonable penetration. Individual require-ments will also create problems of coordination.

Universities

The market for penitentiary produced products in Canadian Universities and Colleges is considerable. Requirements include such items as:

- furniture, including general office, private office, library, residential, laboratory, dining, social centres, etc.

- brooms and brushes

- sheets, pillow cases

- lockers

- semi portable bleachers for stadia and gymnasia

- basketball backboards

- sports uniforms

- etc.

In the case of furniture, which includes cabinets, desks, chairs, book-cases, etc., there have been continuous style changes over the years. Also, laboratory furniture has become quite specialized and design changes have been frequent.

- 30 -

The size of the potential market is well demonstrated by studies con-ducted recently by the Canadian Universities Foundation. These studies show that operating and capital expenditures of Canadian Universities and Colleges are expected to average about $450 million during the next four years compared to an average of about $250 million during the last four years. Both the capital and the operating expenditures represent good mar-kets for penitentiary produced products.

The percentage allocation of both capital and operating expenditures by class of project gives a general idea of the type of expenditure. The planned allocation for the period 1961-62 to 1965-66, for instance, is as follows:

Instruction and Research

Science (including biological, 36 physical and general science)

Arts 15

Libraries, museums, research 10

Athletics and Recreation 3

Residence, dining facilities and social centres 18

General administration and services 3

Hospitals 5

Land, sites, properties 1

Campus improvements 1

Not otherwise classified 8 Total - 100%

Consequently, any efforts in this area should be concentrated on equip-ment and supplies for the science faculties, libraries and museums and residences, dining facilities and social centres.

Planned Allocation

- 31 -

C hurches

The "church market" as represented by the United Church of Canada and the Anglican Church of Canada (based on the market study) offers reasonable market potential. This market, as well, however will require considerable coordination. There are many religious denominations in Canada, all of which are quite independent and autonomous. Any one religious denomina-tion has many departments, missions, societies, orders, charges, etc. , which are not necessarily controlled centrally except from a ministerial standpoint. As a result there are many practical obstacles to evaluating the actual size of the market and also to negotiating sales.

One of the churches contacted during the field study, (The United Church of Canada) is representative of the market that exists for penitentiary pro-duced products. This church has many institutions or a.gencies offering a market potential for many and varied products. For instance:

the Universities and Schools include:

Mount Allison University, Sackville, N. B.

United Theological College, Montreal, Que.

Queen's Theological College, Kingston, Ont.

Victoria University, Toronto, Ont.

United College, Winnipeg, Man.

St. Andrew's College, Saskatoon, Sask.

St. Stephen's College, Edmonton, Alta.

Union College of British Columbia, Vancouver, B. C.

United Church Training School, Toronto, Ont.

United Church College, St. John's, Nfld.

Sta.nstead College, Stanstead, Que.

Albert College, Belleville, Ont.

Ontario Ladies' College, Whitby, Ont.

- 32 -

In summary, the market survey indicates that there are five principal product classifications to be considered -

(i) Tailoring

This is the largest of prison industries in terms of dollar volume and numbers of inmates employed. The work is reasonably suitable from a rehabilitation standpoint.

(ii) Canvas Products

Next to tailoring, this is the largest employer of labour. The survey indicated a fairly large demand for canvas products in addition to mail bags. Products in this category using mechanical methods of man-ufacture have reasonable rehabilitative value.

(iii) Woodworking

This consists of wood machining, assembly, general carpentry, cabinet making, repair and refinishing. The work is purposeful and provides a visible result. It appears to be popular with inmates. It provides a good opportunity for improved personal relations between the prison instructors and the inmates. Much of the work is typical of that found in modern industry. Most of the work can be performed with a minimum of training while the more skilled work can be done by the most suitable inmates.

(iv) Tubular Steel Work

At the present time there is only a small number employed in this industry. The market for such products is expanding and the work is useful and productive as well as typical of that found in industry. Most of the work can be performed with a minimum amount of training time.

(v) Sheet Metal and Metal Products

The market for products in this category is considerable. The work is purposeful and typical of that found in industry. It normally involves a minimum of training time.

No attempt has been made to define the precise size of the available mar-ket. Samples were too small for accurate forecasting in this area. However, the samples did indicate that the market is far in excess of any foreseeable requirement in the field of penitentiary industry.

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CHAPTER THREE

INDUSTRIAL SHOPS

TYPE AND LOCATION

Techniques, similar to those used in a plant location study for a com-mercial enterprise, were utilized in assessing alternate types and locations for penitentiary industry.

Unlike commercial industries however, the prime product of penitentiary industry is marketable skill The goods produced are, in effect, a by-product. This peculiarity necessitates certain modifications to the usual techniques to determine the best location for penitentiary shops from a rehabilitative standpoint.

Certain factors considered in this determination were reviewed separately in the preceding chapters. It was brought out that there were limitations to both the skill markets and available product markets due to the restrictions inherent in the penitentiary environment.

In addition, due to the special conditions that pertain to the production of goods for penitentiary use, separate considerations were given to this class.

Conditions suggested consolidation on an area basis in some instances. Further, recognizing the correlation between quality and worker attitude, allocation of quality products (such as officer uniforms) to minimum secur-ity institutions was indicated.

The overall recommendations are intended to provide general purpose shops equipped to produce a wide range of standard products rather than special or non-standard products.

Consideration of all factors indicates that some occupations, currently classified as industrial, Should be reclassified either as vocational training or maintenance occupations. Discontinuance of some shops, relocation of some shops and establishment of new shops is also indicated.

- 36 -

EQUIPMENT REQUIREMENTS

Identification of product classifications and estimation of the number of inmates to be assigned to the industrial program established the foundation on which to plan the equipment. In addition, we were ever sensitive to the prime objective of the industrial program -- rehabilitation through post-re-lea.se employment.

In line with this objective, equipment was selected that would qualify the inmate in the broadest skill market possible and also satisfy manufacturing requirements. This dictated the selection of the highly popular general purpose industrial machine tools as opposed to special purpose equipment or the lighter hobby shop variety.

Material Handling Equipment

In view of the limitations of floor loadings in the institutions and the size and type of anticipated product, we do not recommend the consideration of capital material handling equipment such as power trucks, conveyors, etc. at the present time. After the shops are established, experience with the use of hand trucks, dollies, tote boxes, etc. will indicate locations where conditions justify further mechanization of material handling opera-tions.

Production Equipment

General purpose equipment is designed to perform a basic operation, such as cutting or drilling, that is common to the manufacture of a wide variety of products. It is generally restricted to working one type of material, say metal or wood, but will handle a wide range of shapes and sizes of that material.

, In determining equipment requirements, products were first grouped by type of material used and lists of basic capital equipment requirements were generated. These lists were developed by first identifying the piece of equipment required to perform each operation regardless of volume. Additional pieces were then added where required to balance capacity throughout the shop.

Equipment lists thus developed for all proposed shops are contained in the Appendix (Schedule E).

Equipment lists are included for non-acid and acid canneries. This occupation is not considered here as an industry. It is a large employer of male labour on both coasts however and for this reason should be con-sidered as a training opportunity from a post-release employment standpoint., - 37 -

DETERMINATION OF SPECIFIC MANPOWER ALLOCATION

The general percentage allocation of inmates to various programs, previously developed, must be modified in application to suit the peculiari-ties of local institutional conditions. For example, although the overall average recommended for maintenance assignment is 29%, this was develop-ed as a combination of 10% at minimum security institutions and 30% at others.

In addition, the following assumptions are made with regard to minimum security institutions. None will have academic training programs. Valley-field and Springhill will not have vocational training programs. Unassign-ables will be negligible and are therefore disregarded.

Further, we assume that all institutions are populated to capacity with an inmate mix of average characteristics. We also visualize a proportionate population growth centered at each institution.

Various rationalizations and modifications were made in assigning in-mates to programs at specific locations. To minimize disruption, the St. Vincent de Paul complex and the Kingston complex were assessed on an area basis rather than an institutional basis. Average statistics were applied to area populations and assignments were based on present program availabili-ty at individual institutions. Vocational training is thereby concentrated at Federal Training Centre and Collin's Bay. Also, because of the preponder-ance of young offenders at St. Vincent de Paul and Kingston, academic train-ing is concentrated at these institutions.

It is generally expected that all population increases must be accommo-dated in new institutions. In view of the fact that the Service's plans for new institutions were in a state of flux at the time of the study, we are unable to recommend specific institutional assignment for future populations. How-ever, future industrial populations are forecast according to present institu-tional locations. In addition, floor space required to house future industrial assignees in new institutions is developed.

- 38 -

SHOP SPACE REQUIREMENTS

Shop space requirements are generated in the process of preparing shop layouts. This is a step-by-step procedure for determining the most effec-tive location for individual pieces of equipment in the shop.

It considers the sequence of operations and arranges the equipment in a manner that will minimize material travel through raw stock to finished product.

It provides sufficient space for machine operations and ancilliary hand operations. It also provides space for the movement of material through the process and for temporary storage between operations.

Shop layouts were prepared in this manner for the frame section of the metal bed, a canvas shop and a clothing shop. These are reproduced in Figures LII, IV and V in thé Appendix.

Determination of floor space requirements for other shops recognized these principles. However, without knowledge of the anticipated product mix in the shop, a final efficient layout is not possible. In determining floor space requirements for general purpose shops we drew on past experience which was confirmed by observation of penitentiary operations. Following this, a workable ratio of floor space requirements to operators for each type of industry was developed. These ratios which were modified to speci-fic local conditions in application, follow.

Shoe and needle trades 100 sq. ft. /inmate

Metal and wood products 250 sq. ft. /inmate

Upholste ry 350 sq. ft. /inmate

- 39 -

INDUSTRIAL SHOPS

The disposition of manpower and floor space (in square feet) on a speci-fic industrial shop basis is tabled below, institution by institution. The tables also indicate the recommended source of shop space requirements.

Springhill

From a present population of approximately 100, 90 should be assigned to industrial shops as follows:

Men Area Shop Source of Floorspace Existing New Construction

25 2,000 Officer Shoes 2,000 (Canvas)

20 5,000 Metal Products 2,400 2,600

25 3,400 Officer Uniforms 3,400

20 5,000 Wood Products 5,000 15,400 7,800 7,600

In five years 36 additionai industrial assignees will require shop space in a new institution. This might be two shops, one devoted to quality foot-wear production (1,800 sq. ft.) and the other devoted to wood products (4,500 sq.ft.).

Dorchester



30 2,000 Canvas 2,000

40 10,000 Metal Products 6,600 (Metal)

3,400 (Blacksmith)

20 4,000 Shoe 4,000

40 4,100 Tailor 4,100

31 8,800 Wood Products 8,800

15 2,500 Wood Furniture 2,500 (Concrete Prods. ) Repair

176 31,400 31,400

It is recommended that the blacksmith and machine shop be reclassified as a maintenance occupation and that 700 feet of space be retained for this purpose. Similarly, it is recommended that the concrete products shop be discontinued as an industrial shop with 600 feet of space retained for main-tenance requirements. The existing paint shop should be reallocated to metal and wood products.

In five years 65 additional industrial assignees will require shop space in a new institution. This would preferably be two shops devoted to metal products and wood products. The floor area required would be 16,500 square feet.

Nil

- 41 -

390 69,291 69,291 Nil

St. Vincent de Paul

From a present population of approximately 1,125, 390 should be assign-ed to industrial shops as follows:


60 6,500 Brush Products 3,000 3,500 (Bookbinding)

50 3,960 C anvas 3,960

90 27,300 Metal Products 27,300

40 3,858 Shoe 3,858

60 4,023 Tailor 4,023


14 3,600 Wood Products 3,600 Repair

It is recommended that the present bookbinding shop be discontinued and the shop converted to broom and brush products. It is also recommend-ed that existing paint shops and metal cabinet repair shop be utilized for metal products manufacture.

In five years 145 additional industrial assignees will require shop space in a new institution. This would preferably be devoted to metal products and wood products. The floor area required would be 36,250 square feet.

Valleyfield


Metal Products

Tailor (Officer)

Upholstery

Wood Products

Men Area Shop

10 1,922

20 2,000

10 2,005

20 5,000 60 10,927

Source of Floorspace Existing New Construction

1,922

968

2,005

1,000 4,000

5,895 5,032

1,032

In five years 40 additional industrial assignees will require shop space in a new institution. This would preferably be a 5,000 foot shop to house 20 people making metal products and a 5,000 foot shop to house 20 people making wood products.

- 43 -

10,000

16,500

(Paint) 26,500

Kingston



6,300

55 6,300 C anvas -new mailbag and other

60 10,000 Canvas Repair

66 16,500

30 3,212

60 7,125

65 15,075

336 58,212

Metal Products

Shoe 3,212

Tailor 7,125

Wood Products 7,900 7,175

31,712

It is recommended that the printing shop be reclassified as trades train-ing. It is also recommended that the upholste ring shop be discontinued and that the paint shop be utilized for wood products.

In five years, 124 additional industrial assignees will require shop space in a new institution. This would preferably be devoted to metal pro-ducts and wood products. The floor area required would be 31,000 feet.

- 44 -

Collin's Bay



19 1,500 Tailor 1,500

18 7,500 Wood Products 7,500 37 9,000 9,000 Nil

Reclassify the machine shop as maintenance. Discontinue concrete products manufacture and use the area for vocational training.

A growth of 17 industrial assignees is anticipated in five years. These can be accommodated in the wood products shop.

Le Clerc



35 11,200 Bed Plant 11,200

50 4,950 Tailor 4,950


53 11,300 Metal Products 5,000 (Tool & Die)

6,300 (Auto Repair)

158 31,300 31,300 Nil

One half of the existing automotive repair shops to be retained for insti-tutional use only, the balance is assigned to metal products. Reclassify the

- 45 -

textile machine repair shop and the movie projector repair shop as trades training. Discontinue tool and die operations and utilize the space for metal products. Discontinue quarry operations.

In five years, 62 additional industrial assignees will require shop space in a new institution. This would preferably be a 3,000 foot shop to house 30 people devoted to quality footwear production and an 8,000 foot shop housing 32 people making wood furniture.

Joyceville




11,200 (Steel Sash)

60 5,500 Tailor (Officer) 5,500

30 7,680 Wood Products 7,680 Repair

20 3,100 Gymnasium Equip- 3,100

185 35,320 ment 35,320 Nil

Discontinue automotive repair shop and use space for institutional maintenance.

In five years, 70 additional industrial assignees will require shop space in a new institution. This would preferably be devoted to wood products and metal products. The floor area required would be 17,500 feet.

Stony Mountain


Men Area Shop Source of Floorspace _ Existing New Construction

55 6,000 Canvas -new mail- 2,200 (Canvas) 3,800 bags


3,890 (Cone rete)

30 2,300 Tailor 2,300


1,250 (Shoe) 140 20,640 16,840

1,945 Painting (distri- 1,945 bute to metal and wood

22,585 18,785 3,800

Reclassify blacksmith and machine shop as maintenance. Discontinue shoe shop and concrete products shop.

In five years, 55 additional industrial assignees will require shop space in a new institution. This would preferably be a 7,500 foot shop to house 30 people making metal products and a 6,250 foot shop to house 25 people mak-ing wood products.

- 47 -

Prince Albert



30 7,500 Metal Products 2,080 2,280 (Concrete) 3,140

40 4,000 Shoe 4,000

60 8,025 Tailor 8,025

30 4,025 Brush Products 4,025 (Shoe)

40 10,000 Wood Products 6,880 3,120

10 3,500 Upholstery 3,500

210 37,050 27,290

2,800 Painting (to 2,800 metal and wood)

39,850 30,090 9,760

Reclassify the blacksmith and machine shop as maintenance. Discon-tinue concrete products shop.

In five years, 80 additional industrial assignees will require shop space in a new institution. This would preferably be a metal shop, a wood shop and an upholstery shop duplicating areas and populations for these industries shown above.

- 48 -

New Westminster


Men Area Shop Source of Floorspace _ Existing New Construction

30 3,363 Canvas 3,363 (Clothing)

60 14,598 Metal 1,598 13,000

45 11,194 Wood 4,194 7,000

35 8,690 Wood Furniture 3,690 (Shoe) 5,000 Repair

10 3,500 Upholstery 3,500 (Blacksmith)

180 41,345 16,345

1,468 Paint (to wood 1,468 42,813 and metal) 17,813 25,000

Reclassify the blacksmith and machine shop to maintenance and reduce area to 1,445 feet. Discontinue clothing shop, concrete shop, and shoe shop.

In five years 80 additional industrial assigmees will require shop space in a new institution. This would preferably be an 8,750 foot shop to house 35 people making wood products and a 6,250 foot shop to house 30 people making metal products.

- 49 -

William Head Institution

It is reported that there is 10,000-12,000 square feet available at this institution which is currently being used for vocational training. Also there is a building of approximately 8,000 square feet that is in need of repair. It is recommended that the 8,000 foot building be renovated to house a metal shop and a woodworking shop to serve island markets. These shops would accommodate approximately 30 inmates.

Floor Space Requirements

The total floor space required for industrial shops, both present and future, is summarized below.

Existing Institutions Future

Available Requiring Construction (5 Years)

Springhill 7,800 7,600 6,300

Dorchester 31,400 -- 16,500

St. Vincent de Paul 69,291 -- 36,250

Valleyfield 5,895 5,032 10,000

Le Clerc 31,300 -- 11,000

Kingston 58,212 26,500 31,000

Collin's Bay 9,000 -- --

Joyceville 35,320 -- 17,500

Stony Mountain 18,785 3,800 13,750

Prince Albert . 30,090 9,760 21,000

New Westminster 17,813 25,000 15,000

William Head (renovation) -- 8,000

314,906 85,692 178,300

- 50 -

WAREHOUSE AND STOCKROOM SPACE REQUIREMENTS

Warehouse space requirements are primarily a reflection of finished goods Inventory Policy. In our opinion, with improved inventory manage-ment, it should be possible to maintain realistic shipping schedules from a finished goods inventory equivalent to approximately one month's produc-tion. This level is recommended as inventory policy and the following dev-elopment is based on this assumption.

C alculation

Calculation of finished goods warehouse space requirements is based on the following factors:

- on an average, 1% of, the shop floor space will accommodate 1 day's production stacked 1 high.

- on an average, finished goods will be stacked 3 high in the warehouses.

- one month's production = 22 day's production.

- warehouse will accommodate one month's production.

Warehouse space requirement is therefore one-third of 22 times 1% of the shop floor space

= 1/3 x 22 or 7-1/3%. 100

An additional 2-2/3% should be provided for packing and shipping space. The total space requirement for warehousing and shipping therefore is an equivalent to 10% of the manufacturing area from which it is fed.

Stockroom space requirements for storing raw materials and compon-ents for manufacture are influenced by the following factors:

- volume purchasing of certain items,

- planned delivery schedules of blanket orders,

- efficient utilization of space through vertical storage,

- availability of areas for short term banks of material in each industrial shop,

- annual average turnover rate of inventory.

- 51 -

For example, if a high percentage of items are purchased on an annual basis, large stockrooms are required. Similarly, if vertical shelving, storage racks, etc. are not generally provided, much more floor space is needed.

Proper planning and scheduling of production material requirements can achieve an annual average turnover rate of two to three turns.

In our opinion, with reasonable facilities and inventory control, stock-room space equivalent to 10% of the shop space it serves should be quite adequate.

Since present stockroom and warehouse facilities could not be accur-ately determined, the following summary of stockroom and warehouse space requirements is in gross rather than net figures.

Warehouse and Stockroom Space Requirements

Existing New Location Institution Institution

Springhill 3,080 1,260

Dorchester 6,280 3,300

St. Vincent de Paul 13,860 7,250

Valleyfield 2,185 2,000

Le Clerc 6,260 2,200

Kingston 16,740 6,200

Collin's Bay 1,800 --

Joyceville 7,065 3,500

Stony Mountain 4,250 2,750

Prince Albert 7,970 4,200

New Westminster 8,560 3,000

William Head 1,600

79,920 35,660

- 52 -

C HAPTER FOUR

THE INDUSTRIAL MANAGEMENT ORGANIZATION

The industrial rehabilitation program, as envisaged at this point, will employ 2,700 inmates and occupy some 700,000 square feet of floor space. It will have a sales volume of $25 million and a product range from small wooden identification tags up to, possibly, automotive trailers.

This enterprise will dçmand management of a high order. But this man-agement must be part of a large organization; an organization which has the responsibility of administering the custodial and correctional programs for all the penitentiaries. The demands placed by this added complication will require a supreme managerial effort - an effort which will only be forthcom-ing if orga,nizational lines are drawn carefully, and followed faithfully.

Because of the complication of operating a manufacturing enterprise within a penitentiary organization, some thought was given to complete sep-aration of the two functions. Such a step would solve certain operating pro-blems, without doubt. However, for what are considered valid reasons, we recommend integration rather than segregation.

We have observed segregated operations in other institutions. Some of the weaknesses of this system have probably been penological rather than organizational. However, it has been our general impression that rehabili-tative aspects have been relega.ted to a relatively insignificant position when compared to the objectives of increased net ea,rnings and keeping inmates occupied . ,

If rehabilitation is the primary objective, and if net earnings are con-sidered a by-product of the operation, then integration of all organizational functions in penitentiary operation has significant advantages. It permits the assigning of inmates to their most needful programs. It maintains the proper balance between all programs. It permits the penitentiaries to oper-ate as completely integrated correctional institutions.

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ORGANIZING FOR AN INDUSTRIAL ACTWITY

The basic prerequisites to an industrial activity are:

- demand for a product

- facilities for producing the product

- raw materials

- manpower to manufacture the product

To survive, an industrial enterprise must insure that these basics are provided and maintained. This requirement dictates that the organization embodies:

1. A function responsible for maintaining a continuing demand for the product - Marketing.

2. A function responsible for providing and maintaining adequate pro-duction facilities - Production Engineering.

3. A function responsible for the supply of the required quantity and quality of material - Production Planning and Control.

4. A function responsible for the supply of the required quantity and quality of manpower - The Classification Process.

Marketing

The basic responsibility of the Marketing function is to lay out and achieve a sales program that will prove both practicable and profitable. The fulfillment of this responsibility will require knowledge of market demands, both present and future; it will require an attack on the selected markets by advertising, by mail solicitation, and by direct selling; it will require sales service to maintain customer satisfaction.

The overall marketing program is of vital importance. It shares equal stature with financial control and production in the foundation of any indust-rial enterprise. Therefore, the entire responsibility should be centered in one person. We would suggest the title Marketing Officer for this position.

- 54 -

In addition to managing the entire sales function, this officer should retain complete responsibility for sales forecasting, advertising, and general mar-ket development.

Direct selling will require the services of specialists. Two general market areas have been identified. One lies in the head offices of various Federal Departments and Agencies. The other is in a myriad of locations and includes the location of buyers for Provincial and Municipal Governments, School Board, Universities, Church Organizations and the like. This latter will also include the regional offices established by many of the Federal De-partments.

The "headquarters" market can best be approached by a Development Officer attached to headquarters. This officer must be extremely capable as he will be competing with the expert sales representatives of commercial concerns. He must be energetic because frequency of sales calls must be sufficient to attain and maintain the required market penetration. It is this officer who, in the final analysis, will determine the degree of success attained by the marketing program.

The other market will require the attention of Local Development Offi-cers. These should be attached directly to the institutions or to Regional Headquarters as geographic requirements dictate. Their responsibility will be in the field of direct selling in the geographic area served by the institu-tion or Region.

Although the Local Development Officer should report to the senior offi-cer of the local administration, he should réceive strong functional guidance, as well as assistance, from the Marketing Officer.

The only other requirements in the Marketing Division are clerical in nature.

The proposed organization for the Marketing function is depicted in the chart following.

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1 1 CLERK

TYPIST

LOCAL DEVELOPMENT

OFFIC ER

ORDER

CLERK

MARKETING

OFFICER

DEVELOPMENT

OFFICER

Organization of the Marketing Function

CHART I

Production Engineering

The Industrial Division will have several functions, all of an engineer-ing nature, which can be well fitted into one major segment of the organiza-tion. The functions are:

Product Design.

Production Method.

Production facility requirements.

These are inextricably interwoven with the necessary consideration of pro-duction volume requirements. Because of this relationship, it is mandatory that the Industrial Division have the complete authority for the specification

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of facility requirements (equipment and buildings).

In addition to the specification of facility requirements and production methods, special mention is required of the problem of product design. Heretofore, all necessary product design has emanated from within the divi-sion. With an expanded and diversified industrial program, however, the function will require special consideration.

Product design is a highly specialized technical undertaking. In addition to basic design, there is a requirement for special features, styling, and so forth, all of which are intended to add to the saleability of the product.

Product design for the planned industrial program will require a range of technical talent out of all proportion to that presently available. In actu-ality, the potential range of products will preclude the possibility of the en-tire task being undertaken by the Production Engineering group.

Examination of the type of products identified by the market survey, how-ever, indicates that they fall into three classes.

- Design specified by the customer.

- Standard items such as pails, brushes, etc.

- Products where customers merely specify needs but supply no design e.g. lockers, steel shelving, file drawers, etc.

Where design is specified by the customer there is no problem. Equally, in the case of standard items, the present staff have done an excellent job in some areas in the matter of standardization and acceptable design.

The third group, however, will create some problems. Although this group will include some items such as cupboards, trophy cases, and the like, where design requirements are simple, it will be largely made up of items where design problems present real challenge. Challenge which will, many times, be beyond the expected capabilities of the staff of the Industrial Division.

These design requirements can best be met from the ranks of the spec-ialists in industrial design. There are many capable firms in this field who, having knowledge of special market requirements, can be of great service in matters of product design. The Industrial Design Branch of the Department of Trade and Commerce can advise as to registered and qualified industrial designers who specialize in the styling and design of consumer demands.

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Production Planning and Control

The function of planning material requirements, ordering material, maintaining raw material inventories, scheduling production, and maintain-ing adequate finished goods inventories is known as Production Planning and Control.

Because industrial operations will stretch from New Brunswick to Brit-ish Columbia, and because the product range is so broad, the success of the enterprise will be directly proportional to the success of the planning and control function.

Since the Marketing function is largely centralized there is good reason to similarly centralize the production planning and control operation. Thus, command headquarters should be located in Ottawa. Its major responsibili-ties should be to plan large material purchases, determine manufacturing schedules in one month blocks for each institution, and maintain complete records on finished goods inventories.

At the institutional level, there will be a requirement for a similar function which plans smaller material purchases and determines the daily manufac tu ring schedules . In addition this function must report changes in inventory positions as rapidly as they occur.

Production planning and control methods are discussed in detail in a later section of this report.

Financial Accounting and Control

The successful management of any business depends upon accurate and timely knowledge of the financial condition of the enterprises. The reporting of this information is the primary purpose of the financial function in any organization.

The Finance and Services Division already exists in the organization and is capable of providing the purchasing and accounting requirements of the Industrial Division. It is entirely possible, however, that expansion of the Finance Division will be required con-imensurate with the growth of the Industrial Division.

In another section of the report we recommend the introduction of a system of accrual accounting in order that control information will be more accurate. The additional need of timeliness is no less important.

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The following was omitted from the final printing of the captioned report.

This should be read immediately following page 59 of the report.

A STUDY OF INDUSTRIAL ACTIVITIES IN CANADIAN PENITENTIARIES

ERRATA

The Institutional Organization

The industrial organization at the institutional level is entirely ade-quate with one exception. We refer to the reporting relationship of the Supervisor of Industries.

At the present time this position reports directly to the Warden. All other institutional program directors report to the Deputy Warden. This relationship officially separates the industrial program from all others except at the Warden level.

One of the major problems which many of the institutional industries face is in the area of inmate assignment. All too often there have been instances of undesirable assignments to industrial shops, other programs interfering with industrial operations and so forth. These appear to stem from the fact that the responsibility for inmate assignments rests in one area and the responsibility for the successful operation of industries reste in another. It is suggested that the problem would be readily resolved if

(a)

the two responsibilities were brought together. This can be done by having the Supervisor of Industries report directly to the Deputy Warden. If this were done, we would recommend that the position "Supervisor of Indus-tries" be replaced by the title "Assistant Warden-Industries".

This point has been the subject of much discussion during the course of the study. Therefore, further amplification might be desirable at this time.

There appear to be only two reasonable alternatives with regard to where the Industrial Supervisor might report - to the Deputy Warden, as proposed, or to the Warden, as is the present case. There are advan-tages and disadvantages in each case.

The present relationship apparently offers rather broad freedom of action to the Industrial Supervisor. This comes by virtue of the fact that the Warden, his superior, is extremely busy with executive duties in res-pect to the operation of the entire institution. This apparent freedom, however, has certain disadvantages, chief of which is the tendency for the Industrial section to become a completely separate segment of the institu-tional administration. This segmentation is marked in some institutions, insignificant in others, and will generally depend on the personalities involved.

The chief disadvantage to the present arrangement is the one noted earlier - inmate assignment. In order to operate an industrial program successfully, one of the major requirements is a stable source of suitable manpower. This is not, at present, forthcoming on a regular basis. The problems thus created are significant and, more important, difficult to resolve. Resolution requires communication between the three offices of Warden, Deputy Warden and Industrial Supervisor. As this is rather difficult because all of these administrators are extremely busy, many problems remain unresolved.

Our proposal, therefore, is designed to transfer the responsibility for the success of the industrial program from the Warden, by delegation, to the Deputy Warden who presently carries the responsibility for inmate assignment. This proposal has the corollary advantage of consolidating much more of the correctional responsibility within the sphere of one operating executive.

At the time of this change we would also recommend that the Shop Instructors be designated Foremen.

(b)

Conditions change rapidly in a manufacturing organization. Information which is not up-to-date is of little use. Thus, there is a demand for expedi-tious service in the preparation of all accounting reports. There is an equal demand for such service in the field of purchasing.

It will be necessary, therefore, for the Deputy Commissioner to ensure that this service is continuously available. Adequate control of the indust-rial operation depends upon it.

The existing Headquarters staff complement provides the following 13 positions for Industries assignment:

1 Industrial Consultant

1 Director of Industries

1 Assistant Director of Industries

4 Technical Officers

1 Technician

2 Draughtsmen

3 Stenographers

This should provide adequate capacity in existing position numbers to to accommodate the activities recommended.

However, an industrial enterprise of the magnitude envisaged requires that senior positions be filled by individuals with broad commercial back-ground and proven ability to perform. Specifically, the Director of Indust-ries position has equivalent demands to those of a Manufacturing Manager of a commercial enterprise employing 800-1,200 direct workers. Similarly, the Marketing Officer position has equivalent demands to those of a Market-ing Manager of a commercial enterprise whose rightful market share is up-wards of $25 million annually. The manner in which these two functions are carried out will determine the success or failure of the entire industrial enterprise.

- 59 -

MARKETING

OFFICER

The chart below (C hart II) depicts the recommended organization for the Headquarters Industrial Division staff.

DEPUTY

COMMISSIONER OF

PENITENTIARIES

DIREC TOR

INDUSTRIES

DIVISION

PRODUCTION PLANNING & CONTROL OFFICER

PRODUCTION ENGINEERING

OFFICER

CHART II

Provision is made in the current organization for the positions of Assistant Supervisor of Industries and Shop Accounts Officer reporting to the Industriat Supervisor.

These positions should be filled, where warranted by the volume of indue-trial activity, to provide for the delegation of responsibility

(a) to the Assistant Supervisor for such duties as material expediting, schedule coordination, detailing local custom products and other pro-duction engineering duties;

(b) to the Shop Accounts Officer for such duties as record keeping, preparation of reports, and other clerical duties.

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It is considered that appointments to these positions would be warranted (depending on type of product and product mix) when industrial employment at the institution exceeds approximately 100 inmates.

In addition to the normal requirements of industrial foreman, such as responsibility for production efficiency, product quality, shop discipline, job instruction etc. , penitentiary foremen should be responsible for custody and a much more active role in counselling.

For this reason, each penitentiary foreman should have an assistant (Lead Hand) to whom certain responsibilities can be delegated.

The position of Lead Hand presents an excellent training opportunity for a certain class of inmate and consideration should be given to using inmates in this position where possible.

For obvious reasons, inmates could not be given responsibility for dis-cipline, counselling, or any activity with implied authority or influence over other inmates. However, duties normally assigned to industrial lead hands, such as job instruction, material expediting, etc. , could well be undertaken by inmates with leadership qualities and some technical background.

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ASSISTANT DEPUTY WARDEN

Custody

FOREMAN

1

FOREMAN

WARDEN 1

DEPUTY WARDEN

Treatment & Training

CHART III

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FOREMAN

ASSISTANT WARDEN

Industries

ASSISTANT DEPUTY WARDEN

Training

The organization at the institution is depicted below.

The Use of Position Guides

Attached to this chapter are position guides for the Production Engineer-ing Officer, the Production Planning and Control Officer, and the revised position of Director - Industries Division.

We recommend that these guides be developed for every position. Not only do they aid the study of the organization, by forcing attention on every detail, but they are invaluable as guides to incumbents, particularly when organizational changes are involved.

A complete organization constituted on these lines would allow close coordination and community of effort working in harmony toward the common objectives of the Service.

The following charts depict the proposed organization of industrial activi-ties in the Penitentiary Service.

Chart IV - Headquarters Functional Organization.

Chart V - Headqu.arters Position Organization.

Chart VI - Typical Institutional Organization - Functional.

Chart VII - Typical Institutional Organization - Positions.

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PENITENTIARY INDUSTRIES

HEADQUARTERS ORGANIZATION FUNC TIONAL

PRODUCTION PLANNING & CONTROL

Plans for the production of goods across available facilities at a rate that will satisfy sales de-mand. Arranges for the supply of raw materials to support the pro-ductlon plan.

INDUSTRIES DIVISION Develops markets, defines pro-duct, specifies facilities and method of manufacture, determines material requirements, schedules production.

MARKETING Determines and develops poten-

tial markets, obtains a fair share of the market for the Service through sales, advertising, sales promotion, public relations and customer service activities.

C HART IV

PRODUCTION ENGINEERING Develops and specifies indtstri-al shop layout, equipment, tool-ing and production method to support the indicated volume of production. Interprets product design specifications for sales. manufacturing and quality con-trol purposes.


HEADQUARTERS ORGANIZATION

SEC RE TA RY DIRECTOR OF INDUSTRIES

MARKETING OF FIC ER

LOCAL DEVE LOPMENT

OF FIC ERS

ORDER C LERK

DEVE LOPMENT OFFICER

C LE RK TYPLST

PRODUCTION ENGINEERING OFFICER

DETAILER

1 r--- i C LERK

PRODUCTION PLANNING & CONTROL 0 F FIC ER

SC HEDU LE C LE RK

I MATE RIAL

C LE RK

F GENERAL I

TYPIST

C HART V

INDUSTRIAL PLANNING

Designs minor tooling and layout, and details local custom product. Coordinates shop schedules with master schedules. Expedites mate rial.

PENITENTIARY INDUSTRIES TYPICAL INSTITUTIONAL ORGANIZATION

FUNCTIONAL

INDUSTRIES DIVISION Directs the occupational training of selected inmates in industrial activities producing goods in con-formance with quality and quantity standards in an atmosphere simulating commercial employment.

CA CA

INDUSTRIAL INMATE SUPERVISION

Instructs and counsels inmates. Maintains custody and discipline. Insures that goods are produced to meet quality and quantity stand-ards.

1

INDUSTRIAL RECORDS

Records information related to quality and quantity of production, efficiency of operators, etc. and prepares necessary reports.

CHART VI


TYPICAL INSTITUTIONAL ORGANIZATION

FOREMAN

LEAD HAND

FOREMAN

LEAD HAND

DEPUTY WARDEN

TREATMENT & TRAINING

ASSISTANT WARDEN

INDUSTRIES

INSPECTOR

PLANNING ASSISTAN RECORDS CLERK

FOREMAN

LEAD HAND

CHART VII

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3. Interprets product design specifications by preparing drawings and bills of material, and specifying quality standards for raw materials, processes, and finished goods.

C. RELATIONSHIPS

1. Director, Industries Division

Reports to the Director, Industries Division.

2. Marketing Officer, Industries Division

Cooperates with the Marketing Officer, Industries Division on matters relating to product design and product quality.

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POSITION GUIDE

PRODUCTION ENGINEERING OFFICER, INDUSTRIES DIVISION

A. FUNCTION

Develops and specifies industrial shop layout, equipment, tooling and production method. Interprets product design specifications for sales, manu-facturing and quality control purposes.

B. RESPONSIBILITIES AND AUTHORITY

Within the confines of established policy and procedure

1. Advises and assists the Director of Industries in formulating pro-posais for policy and procedure relating to industrial shop lay-out, equipment, tooling, production method, and product specifi-cation.

2. Specifies industrial shop equipment and tooling by referring to suppliers catalogues and/or preparing specification lists and sketches as required.

3. Specifies industrial shop layout by preparing layout drawings and flow charts.

4. Specifies production method by preparing routing sheets, detail-ing sequential operations, and estimated time standards.

3. Production Planning and Control Officer

Cooperates with the Production Planning and Control Officer when circumstances necessitate deviations such as material substitu-tion and process modification.

4. Institutional Officers

Advises and assists Wardens, Assistant Wardens, and other In-stitutional Officers, as required, on industrial matters relating to his areas of responsibility.

5. Other Headquarters Divisional Staff

Cooperates

(a) with Purchasing Officers on matters relating to the purchase or Procurement of equipment and tooling for indus-tries;

(13) with Finance Officers on matters such as Product Cost-ing and preparation of annual estimates;

(c) with Works Engineering Officers on matters relating to industrial buildings and equipment installation;

(d) with other Headquarters staff, as required, in the effi-cient discharge of their responsibilities.

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POSITION GUIDE

PRODUCTION PLANNING & CONTROL OFFICER, INDUSTRIES DIVISION

A. FUNCTION

Prepares and issues industrial shop production schedules, and produc-tion material requirements.

B. RESPONSIBILITIES AND AUTHORITY


1. Advises and assists the Director of Industries in formulating pro-posais for policy and procedure relating to Production Planning and Control.

2. Translates Sales Forecasts to Production Schedules giving consid-eration to shop loading, and material procurement and manufac-turing lead time.

3. Develops material requirements by exploding Bills of Material, in relation to Production Schedules, and in consideration of cur-rent inventory positions.

4. Prepares a schedule of purchases for the Purchasing Officer.

5. Compares actual production with scheduled production, deter-mines causes for deviation, and takes the necessary action to insure that sales requirements are satisfied.

C. RELATIONSHIPS

1. Director, Industries Division

Reports to the Director, Industries Division.

2. Marketing Officer, Industries Division

Cooperates with the Marketing Officer, Industries Division on matters relating to customer delivery requirements.

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3. Production Engineering Officer

Cooperates with the Production Engineering Officer when circum-stances necessitate deviations such as material substitution and process modification.


Advises and assists Wardens, Assistant Wardens, and other Insti-tutional Officers, as required, on industrial matters relating to his areas of responsibility.

5. Other Headquarters Divisional Staff

Cooperates

(a) with Purchasing Officers on matters relating to the pur-chase of production materials;

(b) with other Headquarters staff, as required, in the effi-cient discharge of their responsibilities.

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POSITION GUIDE

DIRECTOR, INDUSTRIES DIVISION

A. FUNC TION

Conducts the Marketing, Production Planning, and Production Engineer-ing activities of the Service.

B. RESPONSIBILITIES


1. Formulates proposals for policy relating to Marketing, Produc-tion Planning, and Production Engineering.

2. Establishes and administers procedures relating to Marketing, Production Planning, and Production Engineering.

3. Recommends the discontinuance of products, or the introduction of new products, based on market demand, and the requirements of Treatment and Training Program.

4. Forecasts sales and production volumes.

5. Recommends capital expenditures required to support industrial activities.

C. RELATIONSHIPS

1. Deputy Commissioner, Penitentiaries

Reports to the Deputy Commissioner of Penitentiaries.


Advises and assists Wardens, Assistant Wardens, and other Institutional Officers, as required, on matters relating to indust-rial activities.

3. Directors of other Headquarters Staff Divisions

Cooperates with Directors of other Headquarters Staff Divisions, as required, in the efficient discharge of their responsibilities.

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4. Others

Acts as liaison officer between the Penitentiary Service and exter- . nal agencies, or Government Departments, on matters relating to

industrial activities.

The Institutional Organization

The industrial organization at the institutional level is entirely adequate with one exception. We refer to the reporting relationship of the Supervisor of Industries.

At the present time this position reports directly to the Warden. All other institutional program directors report to the Deputy Warden. This relationship officially separates the industrial program from all others ex-cept at the Warden level.

One of the major problems which many of the institutional industries face is in the area of inmate assignment. All too often there has been in-stances of undesirable assignments to industrial shops, other programs in-terfering with industrial operations and so forth. These appear to stem from the fact that the responsibility for inmate assignments rests in one area and the responsibility for the successful operation of industries rests in another. It is suggested that the problem would be readily resolved if the two respons-ibilities were brought together. This can be done by having the Supervisor of Industries report directly to the Deputy Warden. If this were done we would recommend that the position "Supervisor of Industries" be replaced by the title "Assistant Warden - Industries".

At the time of this change we would also recommend that Shop Instruc-tors be designated Foremen.

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C IIAPTER FIVE

PUBLIC RELATIONS

Managers, in all segments of the business community, are ever sensi-tive to changes in supply or demand in either the product market or the la-bour market. It is a basic tenet that such changes signal the need for a re-examination of existing managerial strategy.

Any expansion of penitentiary industries, which results in an increased volume of product appearing on the market, would therefore be closely scru-tinized. In anticipation of this, your consultants sounded representatives of business, labour, the government, and the public to assess the type of reac-tion that might be expected.

For purpose of discussion, the overall impact of the proposed expansion of penitentiary industries was summarized as shown in Exhibit 1 and Exhibit 2.

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A Projection of the Potential of

Penitentiary Industry (1968)

Annual Personnel Equivalent * Dollar Volume

Industry Employed Labour Force of Production (000's)

Brush Products 100 40 754

C annery 170 68 - 2,138

C anvas 306 122 2,360

Clothing 503 201 3,457 1 -1 Concrete Products 30 12 402 cn ' Metal Products 625 250 8,382

Shoe 95 38 613

Upholstery 83 33 563

Wood Products 700 280 5,516

Wood Furniture Repair 117 47 922

2,729 1,091 25,107

* This figure is calculated from the basic estimate that a penitentiary inmate will produce 40% of what an equivalent worker in private industry will produce.

Exhibit 1

A Projection of the Geographic

Distribution of Industrial Workers

in Federal Penitentiaries

Location Number Equivalent Labour Force *

Maritimes (Dorchester, N.B.) 258 103

Quebec (Montreal 781 312

Ontario (Kingston) 816 326

Manitoba (Winnipeg) 215 86

Saskatchewan (Princ e Albert) 302 121

British Columbia (New Westminster) 357 143

Total 2,729 1,091

* This figure is calculated from the basic estimate that a penitentiary inmate will produce 40% of what an equivalent worker in private industry will produce.

Exhibit 2

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Exhibit 1 is a national projection of penitentiary employment and sales by industrial category. Exhibit 2 projects the geographic distribution of penitentiary industrial workers. Both exhibits indicate the net displacement effect to free industrial workers.

DBS reports indicate that the GNP (manufacturing) for 1960 was some $30 billion. The projected annual penitentiary sales figure of $25 million represents less than one tenth of 1% of the national total (even without pro-jecting normal increases). Similarly, the displacement of free labour is proportionately negligible when viewed in the national picture.

These were the economic facts presented for discussion. In addition, it was promulgated that the industries selected generally featured low skills and minimum capital investment. This combination places them in the area of keenest competition in the industrial arena.

It was also pointed out that there is no statistical evidence available to measure the rehabilitative s'uccess of any previous industrial program, al-though there are numerous cases of individual success on record.

The survey was conducted to elicit attitudes to the proposal from four distinct viewpoints.

1. An assessment was made of the general public's reaction to the con-cept of rehabilitation through industrial employment.

2. Government purchasing groups were canvassed to determine their amenability to purchasing penitentiary produced products.

3. We held discussions with members of organized labour to determine their reaction to the removal of jobs from the national economy and the acceptability of ex-inmates in union shops or as union members.

4. Representatives of business interests were contacted to determine their reaction to a government sponsored invasion of general markets and specific markets as well as the acceptability of ex-inmates as employees.

The survey was conducted in the form of private interviews and small group discussions. We talked with many private citizens. We held discus-sions with several groups of government officials (Provincial and Federal) to determine both their own feelings and past public reaction in similar

n!

- 77 -

circumstances. We talked with over fifty owners and senior executives of small businesses in Ontario, Quebec , New Brunswick and Nova Scotia. We talked with fourteen labour union officials of the rank of local presidents and regional representatives. Finally, we obtained the opinions of the central executive of the Canadian Labour Congress and the Canadian Manufacturers' Association.

Public Opinion

Without reservation every individual and every group expressed whole- hearted support of the aims and objectives of the industrial program. Addi-tionally, many people expressed gratification that the Penitentiary Service was studying this problem, on an overall basis, to ensure its proper correl-ation with other institutional programs. There was, as might be expected, some thought expressed that more money might be well spent to help prevent the growth of the criminal population. This is, however, outside the range of the subject problem. Suffice to say, at this point, that our discussions indicated a complete agreement with the overall objective of rehabilitation, and ready acceptance of the method to be employed.

Government Purchasing Groups

Our sample of these people, both Federal and Provincial, indicates some reluctance to purchase penitentiary products. This hesitancy results from past individual experience when similar purchases have been made. They have found that pressures brought to bear by individual manufacturers in specific instances have been, in some cases, quite extreme.

There is no doubt that such pressures are brought to bear from time to time. The most extreme case which has been encountered to date was the protest by a firm against the penitentiary industries expanding in a certain field. The private concern did not manufacture, nor did it distribute, in this field. However the protest was lodged on the basis that this firm was contemplating entrance into this product market.

Similar instances are numerous. One provincial government official was severely criticized for ordering two picnic benches from one of the peniten-tiary shops. Many orders of similar size have drawn equivalent protest.

In general, this group indicates that it would like firmer guidance in the form of a clearer statement of government policy. This policy statement, of course, would be required at both the Provincial and Federal levels.

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Organized Labour

The subject was discussed at both the local and national level. The re-sults of ail discussions were so uniform, however, that they may be consid-ered as a single body of interested opinion.

Organized labour is regarded as having three areas of major interest in penitentiary industry. First, there is the matter of creating jobs within the institutions which, in effect, removes jobs from the national economy. Se-cond, there is the matter of the employment of ex-inmates in unionized shops. Third is the acceptance of the ex-inmate as a bona fide member of a labour union.

With regard to the creation of jobs within the institutions, organized la-bour appears to have no objection as long as the primary purpose is rehab-ilitation. Where rehabilitation is not the objective, organized labour can be expected to hold other views.

For example, strong protests were made in Montreal when it was sug-gested that the riot damage at St. Vincent de Paul this year, be repaired by inmate labour. The complainants held that the work was not rehabilitative and, further, was being performed in an area where general unemployment was already a problem.

While the principle of training is quite acceptable, the union people did point out the undesirability of training inmates for industries where unem-ployment might already be high or where, for geographic reasons, there was no opportunity for employment. This point, we submit, has already been considered in the program recommended in this report.

In the matter of employing ex-inmates in organized shops no problem is foreseen. The labour people very properly point out that the initiative in this matter must stem from the employer. If an employer is willing to hire ex-inmates, organized labour will not create obstacles.

There appears to be no desire to deny union men- bership to ex-inmates. The feeling here is, apparently, that if a man has paid his debt to society, he is entitled to resume the rights of a private citizen.

10'

- 79 -

The Manufacturers

Manufacturers, either collectively or as individuals, were regarded as having three major areas of interest, namely: a government-sponsored invasion of the general market; a government-sponsored invasion of a speci-fic market; and the desirability of hiring ex-inmates.

With regard to an invasion of the general market no adverse criticism was offered. Everyone contacted was quick to admit that the extent of the forecast sales volume was negligible in relation to the overall market and therefore offered no real disturbance.

When the invasion, ho.wever, became more specifically aimed at cer-tain markets the reaction was somewhat different. In effect, there was a general tendency on the part of most interviewees to demonstrate mild ap-prehension at the thought that their specific market might be disturbed. In one interview this apprehension was more than mild and specific statements were made to the effect that such a market invasion would be "most unwel-come".

The third subject for discussion developed no clear guides for future action. Although no overall refusals to hire were encountered, in every case there were many conditions stipulated. This is, of course, completely understandable. The hiring of ex-inmates will depend so completely on the intimate detail of the inmate being considered for employment that it is al-most impossible to formulate any general policy which would be helpful.

Rather, this is one area where the after-care agencies could be of sig-nificant aid by providing good liaison between selected inmates and prospec-tive employers. This is, of course, already done by these agencies to the extent of their abilities. An expanded industrial program could well create the need for expanding such capabilities in the foreseeable future.

Conclusions and Recommendations

From all of the foregoing it is possible to draw certain valid conclu-sions.

1. The concept of rehabilitation of criminals will receive complete and wide-spread support. This is evidenced by the great interest displayed in the objectives of the program by everyone with whom discussions were held.

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2. The public, either generally or specifically interested, will accept what they regard as modest disturbances to the present systems of markets and labour if this disturbance will help to achieve the stated objective of re-habilitation.

3. No group will accept without protest, a disproportionately violent disturbance in a specific or confined segment of the economy, no matter how desirable the objectives might be.

4. All groups are prepared to aid directly in any program for the re-form of prisoners.

From the foundation of these conclusions we would suggest that certain broad policies be considered in order that the industrial program will meet with an absolute minimum of public resistance.

First, we would recommend that the objective of the industrial program - namely, the reform of penitentiary inmates - be given continuous publici-

ty. This is necessary in order that there will be no public confusion as to whether the objective is rehabilitation or the development of penitentiary income. The latter will, from our discussions, be an extremely unattrac-tive objective and in all likelihood would create very adverse public opinion.

Second, we would recommend that promulgation of the policies of both federal and provincial governments in connection with the purchase of peni-tentiary products be solicited.

Third, we would recommend that the penetration of any market or the size of any field of training be limited to a modest proportion of the total. As demonstrated earlier the impact of the overall program is minimal to the national picture. It is possible, however, that within the overall frame-work a single market penetration in some geographic area could have seri-ous effects on a local market condition. Similarly, with the training of inmates, a local program out-of-balance with the ability of a community to absorb trainees, will inevitably generate increased unemployment.

Fourth, we would recommend that no market be entertained by Peniten-tiary Industry which will interfere, in any way, with the markets presently serviced by such agencies as the Canadian National Institute for the Blind, The Society for Crippled Civilians and others dedicated to the purposeful employment of the handicapped.

;1'

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Within the framework of these very broad policy recommendations this report outlines the detail of an industrial enterprise which parallels, very closely, an equivalent commercial concern. Specifically, in the field of marketing, the recommendations are oriented towari a standard sales pro-gram.

There are, however, alternate sales programs which are worthy of con-sideration and which will help to minimize adverse public reaction. None of these would serve in an overall capacity but each one of them, in specific circumstances, would provide substantial contributions to the relief of this problem.

1. Contract Sharing

Contract Sharing is a procedure whereby only a part of a contract is supplied by penitentiary industry. The purpose would be to minimize the specific market penetration in any given area. In detail, such a program might be operated in two ways:

(a) Split Contracts

This procedure would involve the splitting of a major contract into two contracts on a basis of approximately 80% and 20%. The smaller contract would be awarded to Penitentiary Industry at the price specified by the ac-cepted tender for the larger portion. This is a simple procedure which would require a policy directive to the department awarding the contract. It would be particularly applicable where designs are completely specified.

(b) Sub-Contracts

This procedure also involves the splitting of the contract but, in this case, the split would occur after the contract is let. It is suggested that, in practice, a stipulation in the tendering procedure would advise that the successful contractor would be required to supply portions of the contract from penitentiary production. He would be required to supply necessary design and liaison services and, on this basis, would purchase the stipulated items from the penitentiary at a stated percentage below the tender price.

This procedure would ensure that satisfactory design service would be available to the Penitentiary Industries. It also ensures that the responsibil-ity for the satisfactory completion of a contract will be concentrated in one area.

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The use of this procedure would be limited, however, as the degree of necessary liaison increased to the point of impracticality. Such a condition would occur where the Penitentiary Industries were required to supply cus-tom components on a rigid schedule to fit in with other components supplied by the contractor.

2. Import Markets

At the present time the Industrial Division does explore the import mar-ket in order to identify products which it could supply and which are not manufactured in Canada. Certainly this approach has much to commend it.

Although no opinion was sought from members of the importing agencies it is probable that market penetration in this area would be so small as to go almost unnoticed.

It is suggested that the Marketing function in the proposed organization conduct surveys on a regular and formal basis in order to determine new import markets as they arise.

It is, of course, to be expected that any new market will eventually be serviced by Canadian industry. As this condition arises it would, therefore, appear advisable for the Penitentiary Industry to revert to its position of serving a portion of the market only.

3. Export Markets

We are advised by certain of the management people contacted that ex-port markets do exist for certain products which are within the capabilities of Penitentiary Industry.

The servicing of such markets is, at least theoretically, a form of com-petition with private industry. There would appear, however, to be no valid reason why such markets should not be shared in keeping with the pro-posed general policy.

It is suggested that the determination and exploration of such markets be carried out by existing government agencies such as CCC.

4. Subcontracting from Private Industry

This is a suggestion which has been presented independently by several industrialists. Basically the proposal is that private industry might con-tract for the services of Penitentiary Industries to make certain specific products for them.

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This proposal is, of course, fraught with many dangers. History re-cords many instances of the misuse of prison labour. In addition to these there are other problems which would be encountered.

Misuse of such labour could conceivably undermine union activities, give one manufacturer unfair advantage over another, and so on.

We do not, therefore, recommend this procedure but, rather, include brief mention of it because of the suggestions received in our survey work.

The Skill Markets

It cannot be denied that resistance to hiring ex-inmates is tacitly inher-ent in both management and labour groups. In spite of this barrier, the final criterion of the success of the penitentiary industries program will be the number of graduates who are successfully employed after release.

The key role of the after-care agencies in this connection cannot be over-emphasized. To facilitate this final step of rehabilitation, the department's responsibilities are clear. It must closely coordinate its activities with those of the agencies. It must officially endorse and actively support their programs. Beyond this, it should use its good offices to promote stronger support for the agencies, both from the government and the general public. Only in this way can the agencies be expected to cope successfully with their ever-expanding task -- to maximize rehabilitation of ex-inmates through post release employment.

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PART TWO

OPERATING

AN INDUS TRIAL PROGRAM •

C 11A.13T4R SD;

MARKETING OPERATIONS

It has long been recognized by all concerned, that the present sales ef-forts of the Industrial Division have met with indifferent success. 1961 sales to other than the Penitentiary Service amounted to an adjusted figure of approximately $800,000.

This is not intended to depreciate the efforts of those directly respons-ible. On the contrary, their pursuit of markets has been agonizing in the face of many restrictive conditions. The Order-in-Council which, until re-cently, authorized the operation of institutional industries was not conducive to expanded sales. The orga,nization which had to carry out the sales pro-gram was burdened by many other duties of operation, general direction, engineering and so forth. These duties continually detracted from the sales effort. The buyers also were, in many cases, reluctant. Apprehension regarding the attitude of private enterprise has discouraged many purchas-ing authorities in other government departments irrespective of the level of government.

Nevertheless, if an industrial program is to achieve maximum success as a rehabilitative medium, it must be able to distribute, in a reasonable way, the articles which are produced as a consequence of the program.

In the foreseeable future, a sales volume of some $25 million dollars will be required to sustain the industrial program as outlined in Part I of this report. An aggressive sales program, well supported by government policy, is the minimum requirement to achieve this objective.

It is to the many problems of product distribution (or sales) that this chapter is devoted.

The philosophies and recommendations which follow are all dedicated to the premise that a "free" market exists in some reasonable form unre-stricted by undue pressures from private enterprise. In Chapter five (Public Relations) certain suggestions are presented for consideration deal-ing with alternative policies which might prove helpful in reducing these pressures should they arise.

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SERVICING THE MARKET AREA

It is theoretically possible that sufficient business could normally be secured from Federal Government Departments and Agencies through the efforts of the centrally located sales department in Ottawa Headquarters. However, from a practical point of view, this seems highly unlikely. The reasons for this are briefly:

(a) Many Federal Government Departments have decentralized their purchasing activities across the country to various local offices.

(b) The location of certain penitentiaries (notably, British Columbia, Prince Albert, Dorchester) poses problems of delivery costs, etc. Additionally, a centrally located sales office which concen-trates largely in the Federal area will overlook the other impor-tant market areas previously identified (notably, the Provincial and Municipal Governments, Hospitals and Universities). We deem it necessary, therefore, that the sales effort take place not only in Ottawa but in each area containing a Federal Peniten-tiary.

A full time "development officer" or sales representative would be re-quired at the Ottawa office. This individual would have a continuing res-ponsibility to maintain liaison with Government purchasing officers concern-ing the sale of penitentiary products. Although he would be responsible for developing business for all industrial shops, the penitentiaries in Ontario and Quebec would probably benefit most from his efforts.

The "development officer" at the local institutions would have respons-ibility for maintaining liaison with prospects in his own area. This would include Provincial Governments and Agencies, Municipal Governments, School Boards, Churches, Hospitals, Universities and other non-profit organizations, as well as local branch offices of Federal Government de-partments. In certain areas this local sales function might only be a part-time activity but in every case it should be considered as supplement-ing the direct sales effort of the Ottawa office.

POLICY CONSIDERATIONS

The market penetration necessary to support the expanded industrial program will be much deeper than anything heretofore known. Even though the expansion might be gradual, sales policy planning is a major require-ment. Policy consideration must be given in the following areas:

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(a) The Canadian Penitentiary Service, the Department of Justice, and the Federal Cabinet must recognize that an expanded indust-rial program designed to aid in the rehabilitation of inmates will require a deeper penetration of the available market. Consequent-ly, it is highly likely that public criticism will become more open. Commercial concerns will consider this a further invasion of what was previously their market; this, in spite of potential rehabilita-tive benefit. It is important, therefore, that all of these groups endorse the expanded program as a policy of government "which recognizes the positive benefit to be derived from an industrial program designed to facilitate rehabilitation". Penitentiary indus-try has been established for purposes of rehabilitation. It has not been established primarily for financial income. It seems reason-able, therefore, that if this aspect were given widespread publici-ty immediately preceding and during the announcement of Govern-ment policy, public acceptance would be much more readily gained and the open criticism proportionately reduced.

(b) The Federal Government, and its agencies, represents the larg-est single market for such products and this is by far the easiest market to penetrate. Each Federal Government Department should be considered a separate customer. Each one should be approached individually to explain the purpose of the industrial program con-templated and how the penitentiary industries can assist them in their purchasing program.

(c) The markets which have been indicated by earlier surveys can only be served adequately when certain products for external customers are manufactured for stock as well as to order. The Industries Division must therefore adopt a policy of manufacturing for stock in so far as external customers are concerned. They, of course, already manufacture for stock (advance manufacture) certain peni-tentiary requirements and they have in the past similarly manufac-tured portable cells for the R.C.M.P. This policy will assist in the standardization of products, as it has done to some extent on penitentiary requirements. It will facilitate the sales program. It will allow the various industries to level out the production in their shops.

(d) The ten Provincial Governments of Canada represent a substantial market for penitentiary products. The Department of Reform In-stitutions of the Province of Ontario alone represents a good poten-tial market for inmate shoes and guards' uniforms. We have found in our sampling of these markets, however, that the basic attitude towards Penitentiary industry is quite varied. One province practically offered complete refusal while other provinces

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indicated only cautious interest. We believe, however, that there is good potential, providing the approach is made from the stand-point of rehabilitation and the program has clearer support from the Federal Cabinet level. It would be helpful to establish further contacts with the various Provincial Governments to negotiate a future policy on penitentiary purchases.

In theory, the easiest method of guaranteeing the necessary sales vol-ume would be for the Federal Cabinet to impose a system of mandatory pur-chases on the various departments of government.

While such an arrangement would provide a very convenient solution, it is basically undesirable and presents several practical problems.

This approach would be contradictory to the government's policies of obtaining the most advantageous purchase for the public's money and offer-ing all Canadian firms an equal opportunity to quote on government orders.

Such an arrangement would unquestionably breed inefficiency. History has proven that an industry cannot stay competitive and efficient when it is an "artificial monopoly".

As well, experience has shown that when mandatory purchasing instruc-tions are issued to a purchasing officer and where such officer believes the policy to be unsound he will frequently embark on a personal crusade to discredit the product. Where such an instruction exists, it is often found that the working relationship between the buyer and the seller is tense and that very few products pass through the buyer's incoming inspection without rejection or complaint. Where such instructions exist, the seller is norm-ally inclined to minimize the customer service essentials which are so necessary to a good relationship.

Somewhere between a system of mandatory purchases and open compet-ition there is an area for consideration however. This relates to the manu-facture of certain products which would be considered as standard govern-ment issue. These would be selected products such as chairs, desks, filing cabinets, etc. , which (a) are required in large quantities by many depart-ments (b) meet government standards such as D. P. W. specifications, Tri-Service standards, purchase descriptions, or C. G. S. B. specifications and (c) are purchased through a centralized purchasing activity. For instance, the Department of Public Works, in accordance with the Public Works Act, purchases the requirements of office furniture and furnishings for all gov-ernment departments (except D. N. D. ). If Penitentiary Industries could

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manufacture several of these high quality standard products, they could dev-elop specialized production shops producing items for stock at competitive prices. These items could be considered as standard government issue and their volume should be sufficient to provide continuous industrial employment in certain shops.

In addition to the manufacture of products considered as standard gov-ernment issue, the remainder of the products to be manufactured must be those resulting f romP the direct sales effort of the headquarters office and the field sales staffs. These two sales groups are the key to the success of the sales pro'gram.

THE SALES OPERATION

The direct sales effort in the headquarters office should be the full time responsibility of one individual. An appropriate title for such an individual would be "Development OffiCer". He will have a continuing responsibility to maintain liaison with government purchasing officers concerning the sale of products of the Industries Division.

This "Development Officer" at Head Office as well as the ones at the local institutions must remember that (i) courtesy calls are quite necessary even though the prospect of a sale may be negligible and (ii) it is frequently necessary to get in touch with the users of the products who do not buy the product but yet influence the purchase. For instance, while the purchasing agents in the Post Office and the Department of Public Works have the res-ponsibility for buying, the Engineering and Maintenance staffs actually in-fluence the purchase of some products.

The local institution should take advantage of the markets which exist in:

- Provincial Government Departments and agencies,

- Municipal Governments including School Boards,

- Churches, Hospitals, Universities and other Non-Profit Organizations.

As well, the local institutions should continue to solicit business with those branches of Federal Government Departments and agencies located within the area. For instance:

1. The district offices of the Department of Defence Production buy goods of a local or urgent nature from sources within their own area.

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2. The district purchasing offices of the Department of Transport purchase most of the smaller items such as general hardware, maintenance sup-, plies, and other goods to be used within their district.

•3. The local purchasing offices of the Department of Public Works buy close to 40% of the entire department's needs.

4. The diversity of the Department of Agriculture's functions has led to a • pronounced decentralization of its procurement activity. The Research

Branch, for instance, has Research Stations and Experimental Farms located throughout Canada. Practically all of their requirements for equipment and supplies are purchased through local offices.

SUPPORTING THE DIRECT SALES EFFORT

Any salesman requires various programs and devices to support his direct sales effort or to solicit business without benefit of a sales call. For instance, advertising can create an atmosphere or sell a specific product; a catalogue can often sell a product; testimonials can increase buyer inter-est, and so forth.

There are many devices and programs, developed by commercial sales organizations, which would prove extremely useful to the penitentiary indus-try's sales effort.

Advertising

There is one advantage that the products of penitentiary industry have over similar products. We refer to the basic purpose of industries - rehab-ilitation. The products are, in fact, the by-products of a program which elicits sympathy whenever it is mentioned.

This is an advantage which must not be lost. Its protection can best be achieved by a modest advertising program. This should be aimed directly at knovm markets. It is suggested that the Mcer'should be followed by reference to quality, price, delivery, and other saleable points.

The "Icey" could well be supported by some of the testimonials, now on the files, which have been received from ex-inmates who have actually been rehabilitated through one of the correctional programs.

A good advertising program should be supported by suitable product identification.

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Product identification can extend the use of advertising by giving longer life to the advertising message.

Although many companies engage in extensive programs of labelling, packaging and the like, we would suggest a much simpler approach - the trade -mark.

The trade-mark should be simple, appropriate, distinctive, suggestive and it should have memory value. A suggested trade-mark is "PPP" (Peni-tentiary Produced Products) or "RTI (Rehabilitation Through Industry) incor-porated in a small crest. Inasmuch as the design of such a trade-mark is creative, the suggestion is advanced of having the inmates take part in a de-sign competition, the winners of which would receive awards.

Catalogues

The Industries Division, have introduced a very attractive "Catalogue of Products". It should be given special consideration in the advertising plan and the following recommendations are advanced for its improvement:

One insert in the catalogue, preferably the first page, should explain that the catalogue is a product of inmate labour. It should be pointed out, possibly, that the cover was made at St. Vincent de Paul Peniten-tiary and that the printing was done at Kingston Penitentiary.

- Once a trade-mark has been adopted, it should be shown on the outside of the cover and an insert should explain its history and purpose.

- The catalogue is frequently the most expensive piece of direct advertis-ing to be employed. Therefore, its distribution must be confined to real prospects. Even more important, and a fact that should not be overlooked, is that the catalogue is a very personal document. It is important that this document be given to the proper individual initially, that follow up be maintained to be certain that they are being used, and that inserts on new products are directed to the right individual.

Trade Exhibits

Trade exhibits are already being employed by the Industries Division. Every effort should be made however to expand the opportunity to display penitentiary produced products at trade exhibits and, where appropriate, at public exhibitions.

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Specific Sales Aids

In addition to the general support programs of advertising, catalogues, etc., sales can benefit greatly from certain more specific programs such as direct mail advertising, visual equipment, samples, models, and personal letters.

Direct mail advertising is recognized as one of the most selective of all advertising media because it is directed at a specific, preselected group of potential customers. The effectiveness of this type of program is depend-ent on the accuracy of the mailing list and the quality of the message. As a supporting program it would be particularly effective in reaching those indiv-iduals who do not actually buy the product yet do influence the purchase.

Visual equipment includes all forms of slides, photographs, moving pic-tures or sketches and drawings. In many cases they are more useful than samples and models because they can illustrate the product actually in use. This would be particularly important for such products as the playground equipment which is presently receiving so much acceptance.

POST-SALES POLICIES

Although there are many devices designed to aid the salesman to make a 'first' sale, repeat business is largely a result of customer satisfaction.

Beyond the requirement for quality and price, there is a need for sound policies in the area of customer service. This is commonly known as Sales Service and includes such major items as the following.

(a) Order Receipt and Follow Up

The proper receipt, filling, and delivery of orders is an extremely important service. It is essential that penitentiary industries establish methods to ensure that products are delivered on time. It should be remem-bered that punctual and accurate filling and delivery of orders not only im-proves goodwill and the opportunity for receiving further orders, but also reduces the possibility of claims and returned goods.

(b) The Guarantee

The guarantee is closely related to the subject of service. Insofar as penitentiary produced products are concerned, the obligation of the guaran-tee should be rather general and might go so far as to guarantee "general or complete satisfaction." Provision should be made so that either (a) the article will be replaced (b) the defect would be corrected or (c) the cash price would be refunded.

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(c) Returned Goods

A policy of permitting no returns would be ludicrous but there are many ways of reducing the possibility of returns. For instance, every step should be taken to see that (i) mistakes in accepting and filling orders are minimiz-ed (ii) deliveries are met (iii) defective merchandise is not allowed to leave the shop and (iv) substitutions are not made.

(d) Defective Goods

Insofar as goods found to be defective in the field is concerned, it is important that proper replacement or credit be given. It is even more im-portant that statistical records be maintained as to the reasons for such de-fects and that the manufacturing group be aware of the reasons and causes for failures.

Sales service is an integral part of Sales Management and as such de-serves special recognition in the Ottawa Sales Management Organization. The sales service function should be coordinated under the Order Clerk. The activities of this individual should include order receipt and follow up, expediting, administration of guarantee procedure, complaints, allowances for returned material, damaged goods, and defective merch andise. The range of sales service activities is such that a Sales Service policy should be developed, administered, and interpreted by the Sales Management Group. While the primary sales service function would be administered by an "Inside Salesman" the "Development Officers" will also be responsible for carrying out the policy.

PRIC ING POLIC Y

The pricing policy of any commercial concern is the focus of its busi-ness strategy. Consideration of price demands that, above all operating costs must be recovered. Beyond this, however, prices will be adjusted depending upon the immediate goals of the enterprise. Prices below the going level will increase share of the market; prices at the going level coupled with full-scale sales campaigns will increase share of the market; there are even some circumstances where prices can be raised above going levels. The general price range will, however, normally be set anywhere from the total cost point up to the average market price level.

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■•■••

In general, penitentiary product prices should follow the same theorem. They should be set no lower than necessary to recover total costs and no higher than the general market.

The total cost point, of course, will be at a different level than that of outside industry. Institutional labour costs will be a maximum of sixty cents per man day. Even when adjustments are made for reduced producti-vity levels and higher supervisory costs the cost figure will be significantly lower than the equivalent national cost figure. This will place penitentiary industries, all other things being equal, in an enviable competitive position - a position which would represent unfair competition to other suppliers. For obvious reasons this should be avoided.

The price structure should, therefore, lie closer to the going market price. Certainly it should not be more than 5%-10% below going price.

We would recommend that the pricing policy for penitentiary produced products should be the higher of total cost or 92-1/2% of the general market price. This formula should not restrict sales unduly but at the same time it will preclude the charges of unfair competition which might otherwise arise. It will also require constant managerial attention to the total cost figure.

There will, of course, be a period during which industrial reorganizat-ion is taking place when total costs will be higher than the market price. During this period, it will probably be necessary to price to the market for-mula. This period, however, should be of relatively short duration.

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CHAPTER SEVEN

INDUSTRIAL OPERATIONS

The fulcrum of all industrial operations is the point of contact between the foreman and the worker. The success of the operation will be in direct proportion to the conditioning of both parties to this relationship.

The foreman must have clearly defined duties and responsibilities. He must also be properly trained and motivated.

Similarly, the worker must know what is required of him in the job situ-ation. He must be instructed as to the work to be performed as well as to the rules governing his conduct. He must also be suitably trained and moti-vated.

Finally, the degree of foreman-worker contact must be maintained at a high level to maximize its results in a given period of time.

This chapter deals with techniques designed to achieve the above require-ments.

THE DUTIES AND RESPONSIBILITIES OF THE SHOP FOREMAN

A foreman's main responsibilities lie in four directions. He is a leader and a trainer. He is an implementer of ideas (his own and those originated by staff specialists. He is a subordinate to his own boss, the industrial sup-ervisor. He is a co-worker with other members of the supervisory group.

He must be capable of meeting the needs of the management and the industrial worker. He must live up to what the enterprise expects of him as well as what the workers expect of him.

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The responsibilities described are those of any foreman, whether he be in charge of a shop in a commercial concern or in charge of a penitentiary industrial shop. While these supervisory and relationship responsibilities may be common in both the commercial and the penitentiary shops, the fore-man in the latter has certain additional responsibilities. He has custodial duties and, additionally, a responsibility for counselling, motivation and rehabilitation. In view of his close association with the inmate, he is in a position to contribute significantly to the man's eventual rehabilitation.

The ability of the foreman to execute these responsibilities is dependent on many factors. First of all, he must be the most suitable candidate for the job. His job training and personal development must be continuous. He must understand what his job entails. There must be a clear line of res-ponsibility between himself and his boss (he must not have more than one master) and his duties and responsibilities must not overlap those of any other individual. The Organization and Administration Division have issued 'class specifications' for the various industrial occupations in existence but their primary purpose is to describe the qualifications for such a position. The position guide which follows was therefore developed and is intended to describe the Shop Foreman's function, his responsibilities and authority, and his relationship with others.

POSITION GUIDE

Shop Foreman, Industries Division

A. Functions

The Shop Foreman is responsible to the Assistant Warden - Industries for the efficient, sale, and economical operation of his shop. He is res-ponsible for advising and making recommendations to this office with respect to the best interests of the industrial operation. He has a continuing res-ponsibility to train and instruct the industrial worker so that he may develop certain basic skills and work habits. He has a continuing responsibility to counsel and motivate the industrial worker toward eventual rehabilitation.

B. Responsibilities and Authority

Within the limits of authorized policies, procedures, and programs he is responsible for and has authority to accomplish the duties set forth below:

1. Industrial

(a) Directs the manufacture of products of specified quality at minimum cost, in accordance with production schedules.

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(b) Coordinates the flow of production within his shop and bet-ween shops.

(c) Ensures that machinery and equipment in the shop is pro-perly maintained.

(d) Analyses reports of cost, expense, and operating effic-iency and takes the necessary corrective action.

(e) Recommends, to the Assistant Warden - Industries, changes for increased efficiency, quality, and economy.

(f) Co-operates and assists in the implementation of new me-thods and processes in his shop.

(g) Supervises the Administration of health and safety pro-grams and'rules.

(h) Maintains such records as may be necessary for the proper execution of his function.

2. Custodial

(a) Administers the institutional disciplinary code.

(b) Carries out counts of industrial workers as required.

(c) Checks on the admittance and removal of all industrial workers from the shop.

(d) Maintains close control over tools. Guards against pilfer-age, sabotage, and contraband.

3. Other

(a) Instructs industrial worker in proper method of work pro-cedures.

(b) Counsels industrial worker with a view to winning his res-pect, loyalty, and co-operation.

(c) Improves his instructional techniques so that there will be the maximum rehabilitative benefit to the industrial worker.

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C. Relationships

He will observe and conduct the following relationships:

1. The Assistant Warden - Industries

He is accountable to this individual for the proper interpretation and fulfillment of his function, his specific and general responsibilities, and re-lated authority and relationships.

2. Other Foremen and Quality Control Officer

He will coordinate his efforts and co-operate with these people in all matters of mutual concern.

3. Other Institutional Officers

Advises and assists Assistant W1rdens, Deputy Wardens, Wardens, and other Institutional Officers, as required, on industrial matters relating to his area of responsibility.

A TRAINING PROGRAM FOR FOREMEN

The Manual of Correctional Standards highlights the role of training when it states that "personnel should receive in-service training designed to quality them as instructors of prisoners in operations where the labour turn-over is extremely high, where safety precautions must be stressed beyond the emphasis usually required with a stable employment force, where custody and security of prisoners must be emphasized and where close cooperation with other services - medical, social, education, custodial - must be main-tained. The capable foreman must know his job, which also means lçnowing the prison and the prisoner."

The Typical Shop Foreman

The typical shop foreman, entering the penitentiary service for the first time, has a minimum of three to five years of trade training. He previously worked in a highly competitive industrial environment where equipment and skills were generally excellent. He may or may not have teaching experience. He was accustomed to a work situation, with normal social contact, involving little concern with problems such as custody, security or social adjustment. Consequently, his new environment will represent a dramatic change from that to which he has been accustomed - his transition therefore must be planned.

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Successful transition depends upon the new foreman's understanding of, and ability to work within, an atmosphere completely new to him. So import-ant is this aspect that we believe that any training course must concentrate solely in this area for a reasonable period of time. It is therefore recom-mended that any new instructor should spend a period of from one to three months on a custodial assignment before he enters any industrial shop.

Subsequently, provision must be made for him to participate in train-ing programs which will improve his teaching or instructional ability; allow him to keep up-to-date on methods, techniques, and equipment used in com-parable industry outside; improve his promotional possibilities and develop an appreciation of the role of other services such as custody, education, hu-man relations, and vocational training in the overall rehabilitation program.

The Course Content

The Organization and Administration Division have the necessary fac-ilities (both class rooms and personnel) to carry out the necessary foremen instruction (supplemented by the occasional outside specialist). As well, they have developed a building block approach to in-service training which is quite realistic. The scope of the training recommended by the Advisory Staff Training Committee points out the need for Induction or Indoctrination training, followed by regular classroom training and on-the-job instruction.

Although an Induction Training Program has been developed and is sche-duled for all new staff, a large number of new , shop foremen are not attend-ing and are not receiving the benefit of this course.

Induction training should be mandatory and nothing should be allowed to interfere with the attendance of shop foremen. This course is necessary for each new man so that he may become familiar with current correctional phil-osophy, policies of the Service and the Institution, and details of institutional administration (including custody) as they relate to his specific responsibili-ties.

Rotational training, on the other hand, is not basically introductory but is designed rather to increase the skills and knowledge of correctional work-ers; to keep them abreast of developments in the field of corrections; to keep them advised as to procedures, practices, and problems in the local institu-tion, and generally to develop each individual to his full capacity. The Organ-ization and Administration Division have developed a suggested outline for

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such courses and the following recommended subjects are suggested to round out this program.

- Supervisory Training Courses

- The Art of Leadership

- Problems of Organization

- Manpower Management

- Planning the Work Schedule

- Counselling

- Self Improvement

- How to Manage Your Time Better

Industrial Courses

These are classroom and on-the-job training courses designed to im-prove the shop foreman's techniques and methods. They are built around the shop situation. These could include courses such as the following:

- Industrial Training

- Accident Prevention

- Constructive Discipline

- Work Methods

- Cost Control

- Housekeeping

- Maintaining Machines and Equipment

- Securing Better Quality

- Technical courses relating to the particular industry.

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Related Industrial Courses

These courses are designed to keep the shop instructor abreast of associated problems in operating the institution. These might include the following:

- Human Relations Techniques

- Attitudes and Morale

- Motivating the Industrial Inmate

- Custodial Procedures and Techniques

- Classification and Treatment Policies and Procedures

- Methods of Self Defense

- Firearms and Chemical Equipment

- Procedures for the Control and Treatment of Abnormal Prisoners

- First Aid

- Civil Defense

CAREER PLANNING FOR SHOP FOREMEN AND ASSISTANT WARDENS - INDUSTRY

Career planning is concerned with the availability, or supply, of top administrators for the various institutions. It does not replace individual self development. Rather, it supplements on-the-job training and it assists individual and group development in order that the manpower needs of the service will be met in the future.

In addition to developing a pool of senior personnel, it has other prac-tical advantages. It improves skills, and utilizes a man to the best advan-tage of both himself and the service. It thus provides a positive promotional route which motivates the individual to greater effort.

To be effective, however, this development cannot be haphazard -- it must be planned and directed. Certain minimum standards must be esta-blished if shop foremen and Assistant Wardens - Industries are to contribute

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fully to the rehabilitation program and to their own individual development. The program to be followed should be designed around individual requirements.

Most companies carry out career planning in some form even though it may be quite informal and unplanned - it may even be lçnown by some other name.

What are the Tools to be Employed?

Career planning for shop instructors and supervisors of industry can-not be generalized. Each individual has different strengths and weaknesses and consequently each career plan should be tailored to satisfy the specific needs of the individual. Certain basic tools should be considered however. These are devices such as job rotation, advanced management courses, dis-tribution of pertinent reading material, visits to other companies, attendance at professional and technical conventions and meetings, participation in supervisory and management conferences, individual counselling, participa-tion in supervisory development plans, policy training course, training courses in economic and social responsibilities, public speaking, classes in human relations, and technical training pertinent to the many penitentiary industries in existence.

A chart follows (Exhibit 3) which illustrates the magnitude, scope, and possible content of a career planning program.

Whether formal or informal, there is some degree of career planning and personnel development going on in every career. This relatively "un-planned" development is shown at the top of the chart.

The middle portion of the chart outlines additional formal and informal techniques which are available for use "inside the service". This portion is the most important since the development of staff is an administrative responsibility to be carried out primarily by penitentiary staff.

At the bottom of the chart are career development techniques that are available "outside the service.".

The penitentiary service has an unlimited opportunity to utilize the techniques shown in the lower two portions of the chart. The needs of the service will indicate the extent to which these techniques will be used.

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Career Planning Chart

Concept Location I Type Detail

Unplanned Staffing and training occurs on an informal day-to-day basis Career to meet short-term requirements. Development Informal Vs Formal

1. Job Assignments - utilize library facilities - special projects or studies

- "assistant to" positions Planned Within - job rotation

- aàsignment to home office

Career the 2. Training for work occurs in all types of types of "training" assigned positions

Development Service 3. Internal Counselling all kinds of special assistance or guidance

4. Assigned Reading career-oriented publications and reports 5. On-the-job contacts - daily contacts of all kinds

- with specialists and consultants 6. Internal - informal discussions

communications - regular internal conferences - management meetings

Outside 1. Membership - professional societies and organizations, conventions, conferences, etc.

the 2. Study colleges, technical schools, management courses, short courses, seminars, correspondence courses

Service

Exhibit 3

Career Planning in the Penitentiary Service

The facility for development already exists in the Penitentiary Service. The Organization and Administration Division has the teaching staff, the classroom space, the teaching props, the libraries, and the experience to carry out a good portion of this development. These facilities can easily be supplemented with formai lectures by outside instructors. Self development will take place primarily as a result of proper initial selection and sound supervision and motivation by institutional and head office staff. The Indus-tries Division must, however, lay out a plan in cooperation with the 0 & A Division which will achieve the desired result. The need for career planning is paramount. The inmate population explosion taking place demands that the service be in a position to staff new institutions, as they are completed, with existing personnel. Presumably, the service will be looking to the Industries Division, as much as any other Division, for petsonnel to fill more responsible positions.

At the present time, there is an informal line of progression or advance-ment for both shop supervisors and supervisors of industry. This line of progression is illustrated in Exhibit 4 which follows. It is important that all individuals occupying these positions be aware of the promotional possibili-ties. It is even more important that career planning be carried out with this progression in mind.

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Warden

Deputy Warden -

Treatment & Training

Shop Foreman in Industrial

Shop

Planning Assistant

Supervisor of Vocational

& Trades Training

Assistant Assistant Warden- Deputy Warden

Industries Training

Line of Progression

Exhibit 4

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FOREMAN SALARIES

There are two basic philosophies of salary administration. One is the application of the supply and demand principle which treats salaries as a necessary evil and attempts to "hold the line" at the bottom of the range. The other, and more enlightened philosophy, recognizes the value of mone-tary incentives as a motivating force. This philosophy demands salary scales which are equitable both from the standpoint of lateral comparison as well as in vertical relationships.

The difference in total salary payments between the two techniques is negligible compared to the advantages to be gained through positive and ima-ginative salary administration. Improvements in foreman morale and 'per-formance can be dramatic and turnover drastically reduced.

Salary Levels

The salary levels of shop foremen and supervisors of industry were con-sidered from the following points of view.

Are the levels adequate in terms of prevailing rates for equivalent positions outside the service?

Are salary levels or salary relationships consistent internally with job requirements?

- Is there a sufficient pay differential between the shop foreman and the supervisor of industry?

The first step in deciding whether or not salaries paid to penitentiary shop foremen were equitable was to determine current salary levels. An average salary was then developed for each institution by averaging the maximum step in the range for all the foremen at the institution.

Adequate salary information for foremen in outside industry is not avail-able from published data. However, DBS does publish regional wage aver-ages for industrial workers. Although these figures include wages paid to foremen the resulting slight inaccuracy is towards the conservative side and is therefore acceptable.

Wage administration practice in industry, for the past number of years, has been to establish foremen's salaries approximately 25% higher than the average industrial wage. Therefore, if penitentiary shop foremen's wages are compared to industrial averages the percentage difference is meaning-ful. If the percentage difference is significantly greater than 25% then the foremen's wages are higher than necessary. Similarly, if the percentage is

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significantly lower than 25%, the foremen's salaries may be adjudged inade-quate.

The following chart shows the results of this investigation, by area. (Ex-hibit 5)

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Average Weekly Salary of Penitentiary Shop Foreman Compared to Average Weekly Wage

of Industrial Worker

Average Weekly Average Weekly Institutional Location Salary of Wage & Salary- Percentage Penitentiary Shop Industrial Differential

Foreman (i) Composite Province City or Town (ii)

New Brunswick Dorchester $95. 31 $64. 64 47. 4%

Quebec St. Vincent $97. 87 24. 7% de Paul $78. 43 Leclerc $97. 76 24. 6%

, Ontario Kingston $96. 77 $84. 01 15. 2%

Collin's Bay $93. 46 11. 2% Joyceville $95. 96 14. 2%

Manitoba Stony Mountain $94.19 $74. 68 26. I%

Sask. Prince Albert $92. 60 $76. 70 20. 7% .............--.................

British New Columbia Westminster $95. 25 $87. 51 8. 8%

The average weekly salary shown is the average of the salaries of all shop foremen at the institution. The maximum step in the range was

considered to be the position rate and this is the rate used in calculat-ing the average.

(ii) The average weekly wage and salary shown is the average weekly wage of all industrial workers as reported by D. B. S. in May 1962.

Exhibit 5

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(I)

The policy adopted by the Federal Government of uniform rates for classified personnel means that certain personnel are better off than those holding similar positions in the private labour force in the smaller commun-ity. For instance, the average wage paid to a penitentiary shop foreman in New Brunswick is much higher than that which would normally be paid to the incumbent of an equivalent position in the private labour force. Based on the average weekly wage of $64.64 for an industrial worker in New Brunswick, a reasonable weekly wage for a penitentiary shop foreman would be $80.80 -- or 25% over the average industrial worker's wage, and not $95.31 as paid at the institution. Conversely, the average weekly salary paid to a peniten-tiary shop foreman in British Columbia is only 8.8% in excess of the average weekly wage paid to an industrial worker in the province. If the more com-mon differential of 25% were applied, the average weekly wage would be approximately $109.39 and not $95.25.

The Report of the Royal Commission on Government Organization con-firms this situation when it points out in Volume I that "the nation-wide rate scales are below average cômmunity rates in large centres, but are equal to or better than those prevailing in small communities." The effect of this, of course, is that (1) the quality of the shop foreman and the supervisor of industry should tend to be higher than average in the smaller community (for example, Dorchester), and lower than average in the larger centre (for instance, New Westminster), and (2) the government is paying more than it should in some areas and perhaps less than it should in others to remain competitive.

Unfortunately the penitentiary institutions employing the greater number of shop foremen and supervisors of industry are situated in, or close to, large industrialized centres, (for example ,Montreal, Kingston, Winnipeg and New Westminster). Thus, the preponderance of salaries paid to peniten-tiary industrial supervisors is inequitable.

Internal Salary Relationships

An effective salary administration program requires a rate structure in which salary relationships are internally consistent with the job requirements. A study of existing classifications in the Industrial Division of the Peniten-tiary Service reveals certain inconsistencies in this regard.

The Superintendent of Industries at Kingston, for instance, is at the first year range of level 9 ($5,520 annually), while the Instructor - Printing and Bookbinding, who reports to this individual, is earning slightly more at the maximum of level 7 ($5,550). Such a situation is undesirable and should be rectified.

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The salary levels of instructors do not appear to be consistent with the job requirements. For instance, an Instructor - Canvas Work is rated at levels 4, 5 and 6, while positions requiring equal or greater skill, education, experience, and responsibility are rated at lower levels. For example, the Instructor - Blacksmith and Welder is rated at levels 3 and 4; the Instruc-tor - Cabinet Maker at levels 4 and 5; the Instructor - Sheet Metal Worker at levels 4 and 5, and the Instructor - Motor Mechanics at level 5.

It is felt that salary levels have been assigned over the years without evaluation of the job requirements of individual positions. Similarly, value relationships with other positions in the organization have not received ade-quate consideration.

Pay Differentials

It is axiomatic that the take -home pay of the Assistant Warden - Indus-tries should be higher than that of subordinate foremen. In fact, the quick-est way to make an industrial supervisor believe that he is no longer part of management is to pay him equal to or less than the men he supervises. It is essential, therefore, that an adequate pay differential be maintained.

Current information shows an average differential of around 20% in out-side industry. _ Comparing salary levels of the penitentiary shop foreman and the Assistant Warden - Industries the salary differential was found gen-erally to be in line with that found in commercial enterprise. The actual clIfferential in the penitentiary service ranges from a low of 15. 7% to a high of 22.1%. The detail is shown in Exhibit 6 which follows.

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Pay Differentials

Average Weekly Salary Institutional Location of Penitentiary

Supervisor of Percentage Province City or Town Shop Foreman Industry Differential

(i) (ii)

New Brunswick Dorchester $95.31 $113.08 18.6%

Quebec St. Vincent de Paul $97. 87 $116. 54 19. 1% Leclerc $97.76 $113.08 15.7%

Ontario Kingston $96. 77 $113.08 16. 9% Collin's Bay $93.46 $113.08 21.0% Joyceville $95.96 $113.08 17.8%

Manitoba Stony Mountain$94. 19 $ 98.08 (iii) 4.1%

Sask. Prince Albert $92. 60 $113.08 22. 1%

British New Columbia Westminster $95.25 $113.08 18. 7%

The average weekly salary shown is the average of the salaries of all shop foremen at the institution. The maximum step in the range was considered to be the position rate and this is the rate used in calcul-ating the average.

(ii) The average weekly salary shown is the maximum step in the range for the particular incumbent.

(iii) The position of Industrial Supervisor was not filled at the time of the review. The average shown is the position rate of the Assistant Indus-trial Supervisor. If the Industrial Supervisor's position were filled, the average weekly salary would be $113.08 which would result in a differential of 20.1%.

Exhibit 6

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INMATE PROGRAM SCHEDULING

Probably the greatest single barrier to effective inmate scheduling is the present practice of using shops as holding areas while the Classification Committee completes its procedure. A study at one institution revealed that 67% of the inmates were transferred out of the shop before even com-pleting Stage One of the shop training program. Under these conditions, it is not worthwhile for the shop instructor to have a training program prepared for the inmates because he is not going to be given an opportunity to put it into effect. In addition, there will be little possibility of the inmate develop-ing good working habits if he is being frequently shuttled about from shop to shop. In effect, the main purpose of the Industries program is being com-pletely nullified by these practices.

The inadequacies of the existing classification procedures are examined in other sections of the report. This section assumes a condition, with im-proved classification techniques, wherein shops are no longer used as holding areas. Careful selection of inmates, which includes consideration of attitude, aptitude, and time available for training, is also anticipated.

Interruptions to the Working Day

The working day of the inmate is shortened considerably by many diff-erent types of interruptions. Some of these are important to the running of the institution, some are in the interest of the inmate, and some could be eliminated from the working day entirely.

An analysis of the daily lost time in one workshop indicated that approxi-mately 13-1/2% of the working day was being lost by reason of various inter-ruptions. The average for all institutions is probably higher than this figure. It was found that most of this loss was the result of providing personal ser-vice (such as feeding, bathing, barbering, exercising, etc.) to inmates dur-ing shop hours.

It may be necessary to excuse a worker from the shop during normal working hours for reasons such as medical or psychological attention. Lost time resulting from such absences, however, can be insignificant if handled on an individual scheduled appointment basis rather than in groups as at pre-sent.

On the other hand, the present practice of allowing activities such as feeding, bathing, barbering, exercising, etc. , to encroach on available shop working time is completely incompatible with outside industrial practice.

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Certain structural changes and additional facilities may be required to completely eliminate this type of loss. The cost of these changes is not only justified but is mandatory if any reasonable semblance of normal shop conditions is to be achieved.

Hours of Work

One objective of inmate program scheduling is to simulate the full day's work concept prevalent in outside industrial shops. Having corrected classi-fication procedures and minimized interruptions, then realistic hours of work can be uniformly scheduled.

Program schedules currently in effect at the various institutions are tabled in Schedule "F" in the Appendix. Recognizing that security level will influence the total time available, this information is categorically analyzed below.

Reported Working Hours Available

Maximum Medium Minimum Camps

6-1/2 7-1/2 7-1/2 8

5-3/4 7 7-1/2 7-1/2

6 7 6-1/3

6-3/4 7 7-3/4

6-1/4

6-1/2

6-3/4

Aver. 6. 4 hrs. Aver. 7.12 hrs. Aver. 7-1/2 hrs. Aver. 7.4 hrs.

Spread 18% 10% 0% 25%

It will be seen that even for institutions of a similar level of security, the daily schedule varies considerably. For example, one of the farm camps has a total work day that is 16% less than the average worked by the other camps in the penitentiary system.

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To eliminate this undesirable variation, a uniform hours of work policy is recommended. This should incorporate an 8-hour day in camps and mini-mum security institutions, a 7-1/2-hour day in medium security institutions, and a 7-hour day in maximum security institutions to simulate, as closely as possible, the work day in outside industry.

SHOP DISCIPLINE

One of the definitions of discipline given in the dictionary is "the train-ing to act in accordance with rules and instructions set up by another per-son." The first requirement then is the development and publishing of a set of shop rules.

These should be prepared and posted in the shop so that all inmates in the shop are familiar with their requirements. Penitentiary Shop Rules can be based on the same principles as those found in outside industry. The following is a list of typical items that should be covered:

- Smoking - (this will depend upon any hazards such as paint shop con-ditions)

- Work habits - laziness, talking, etc. ,

- Safety - for others, for himself,

- Care of equipment,

- Housekeeping,

- Quality of workmanship,

- Use of abusive language,

- Relations with other inmates, foreman, and instructors.

Each industry shop foreman should prepare his own set of shop rules with the assistance and approval of his supervisor. The reasons for suggest-ing this procedure are these:

- each shop will have its own peculiarities of conditions and equipment.

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- no one general set of rules would be adequate for all the conditions that will occur in the various institutions and types of shops.

- having the foreman develop the rules for his own shop will not only give him a feeling of responsibility but will provide him with a first hand knowledge of the reasoning behind each rule, and lastly, because of these factors, he is more likely to be successful in seeing that the rules are carried out.

An example of penitentiary shop rules is reproduced below to illustrate the type of rules that are required. It will be noted that this example per-tains mostly to safety. This should be extended to include the other items shown in the preceding list as well as the general rules of discipline pertain-ing to the specific institution.

An Example of Shop Safety Rules in Effect in the Carpentry Shop, Stony Mountain Penitentiary

1. Operating area around machine must be cleared of debris, etc. before starting any machine.

2. The proper operation of any machine must be thoroughly understood be-fore starting it.

3. Loose clothing must be tucked in and sleeves rolled up before operating any machine.

4. Goggles must be worn when doing any grinding.

5. Stand clear of anyone operating a machine.

6. Don't talk to, or bother, any man operating a machine.

7. While operating a machine, keep your mind on your work only.

8. Guards and hold-downs should be used whenever possible.

9. Do not clean machine tables with your hands.

10. Do not press material down over revolving heads with your hands.

11. Keep pressure of hands on material away from revolving heads, or blades, in pushing material through machines.

12. Do not walk away and leave a machine running.

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13. Report a machine that is out of order immediately.

14. Do not attempt to clean or repair a machine that is running.

15. Report any injuries, no matter how small.

16. Do not operate any machine, unless the operation to be performed is authorized by the shop instructor, or is pertaining to authorized projects or work.

Enforcing the Rules

The principles of disciplining penitentiary workers for infractions of the shop rules are the same as would be found in outside industry.

The foreman must convey to the inmates a clear understanding that all rules, orders, instructions, or warnings, must be followed explicitly. He must also demonstrate through his actions that he intends to see that all rules are carried out and that infractions of rules will be dealt with promptly and fairly.

The type of action taken in the event that a rule is disobeyed, or an instruction ignored, should be commensurate with the severity of the infraction.

A reprimand may be given, followed by some friendly advice for the fu-ture. The offender may be transferred to a lower ranked job in the depart-ment. A temporary lay-off, involving transfer to an outside labour gang or cell confinement, may be employed. In more extreme cases, the transfer could be permanent. Pay rate reductions, and/or denial of certain privileges, may also be imposed.

In outside industry, the normal practice followed by a foreman before taking action involving transfer, or reduced pay or privileges, is to confer with his immediate superior and possibly the personnel manager. While a shop foreman should have the authority to discharge a man himself, and will be expected to exercise this authority for flagrant violations of rules and orders, he should be absolutely sure that his action will be approved. Usu-ally, it is more satisfactory for a foreman to discuss the problem with his immediate superior to avoid an error made in haste, particularly during the time that the foreman is upset or angry.

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The present penitentiary system follows the above procedures in that the instructor of an industries shop has two basic courses of action.

- issues reprimands for simple or initial breaking of rules.

- reports inmates to his immediate superior and the Deputy Warden in charge of custody, with his recommendations as to the course of ac-tion to be taken. (The present procedures requires the instructor to record on the inmate's record any infractions requiring disciplinary action).

The actual action is determined by a committee composed of the Deputy Warden in charge of Custody, the Classification Officer, and the Supervisor of Industries.

A TRAINING PROGRAM FOR INMATES

The objective of industrial training is to attain the highest degree of development possible in each individual in order to maximize his post-re-lease employment opportunities.

The means to this end will differ in each case. Determination of the means starts at the classification process. Some men's aptitudes will limit their achievement to the more simple occupations. Others will have the latent ability to excel in the most difficult jobs.

The classification process will indicate the scope of the individual's general capabilities. In certain cases, it may point up the need for some modest academic or vocational instruction to release the individuaPs total potential for industrial achievement.

In this way, the classification process establishes the road map indicat-ing the most beneficial training route for each inmate. Once each inmate's program requirement has been determined, a standard methodology can be generally applied. This embraces two concepts.

One is the step by step approach to job instruction. This approach in-volves the analysis of each job into its basic components. The instructor first demonstrates and explains each step. He then requires the worker to demonstrate his ability to perform this step satisfactorily before progressing to the next. In this process, the key operations are identified and emphasiz-ed.

The other is the concept of job rotation.

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During the study, we encountered shops where a formal job rotation pro-gram was being effectively administered. These programs feature a grad-ing of occupations according to complexity, with a learning time assigned to each grade. Progression to successive grades is based on demonstrated skill, and is rewarded with a higher rate of pay.

This type of program provides variety thereby making the work more interesting. It provides incentive by presenting promotional opportunity. It also contributes to the prime objective of industrial training in furthering the development of each individual.

We were impressed with the comprehensiveness of these programs and do not recommend any change. We do recommend their general adoption, however, in all penitentiary industrial shops.

INMATE PAY AND INCENTIVES

A properly constructed and administered wage rate schedule can contri-bute substantially toward the voluntary improvement of an inmate's social attitudes. It can motivate in him the desire to learn job skills in order to increase his production of good quality work. Further, it can encourage him to become a good citizen in the shop environment by conforming to all of its precepts.

To be effective in this direction however, the wage rate schedule must incorporate attractive incentives in its structure. Beyond this, it must be administered in an equitable manner.

The existing wage rate program violates, to some degree, each of these principles. Examination of the existing rate schedule below discloses its structural weaknesses.

DAILY Spending Savings

Grade Earnings Portion Portion

1 - Basic 25e 15e ioe

2 - Average 35e 25e 10e

3 - Above Average 45e 30e 15e

4 - Outstanding 55e 35e 20e

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For example, once the inmate is assigned to any occupation, he receives basic pay (25e per day) or 45% of the maximum pay that he can ever hope to earn. Thus, no matter how he performs, he can only hope to slightly more than double his pay rate. Also this basic grade is paid irrespective of the task assigned - whether the new man is "shining bars" or operating a com-plex piece of equipment, he receives the same basic pay.

Moreover, as time goes on, it is possible for an inmate who continues to perform the most menial tasks to be raised up to the maximum, or Grade 4 pay level. Thus, in some institutions, the inmate finds it convenient to get assignment to the least demanding task available and, by being a model prisoner, eventually achieve Grade 4 pay. This alternative, of course, completely voids the usefulness of the pay schedule as a medium for the proper motivation of inmates. Where there is a real possibility of attaining "the most for the least" there is no incentive to put forth the extra energy demanded by some of the correctional programs.

We recommend that the Pay Schedule be restructured so that maximum earnings are achieved only through maximum effort in programs of maxi-mum difficulty. Thus if the assignment is easy the pay grade should be low. Also if the inmate does not exert his best efforts the pay must be relatively low or the inmate transferred to a lower order of work.

To achieve this, it is necessary that all jobs in the Institution be ranked in ascending order of importance. The factors to be considered in such a ranking procedure are as follows:

1. Complexity of work

2. Educational requirements of the job

3. Training time

4. Working conditions

5. Responsibility for quality

If this is done on an institutional basis it will ensure uniform motiva-tion throughout. It will have the effect of eliminating the "soft touches" in institutional life.

When all jobs have been graded they should be divided into four groups and a range of wage rates assigned to each. The following schedule is sub-mitted for consideration:

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Wage Group Daily Wage Range Typical Occupations

A 0 - 1 5e/day General work gangs

0 - 30e/day Janitorial

20 - 45e/day Kitchen , hospital , clerical

D 35 - 60e/day Education,Tradesmen, Trade Training, Industries

In addition, we recommend that each of these ranges should be subdiv-ided so that consideration can be given to individual merit. An expanded wage schedule based on these recommendations, could be portrayed as follows:

Daily Wage Rates

Wage Wage Group Grade Total Spending Saving

A 1 0 0 0 2 10 10 0 3 15 15 0

B 1 20 15 5 2 25 15 10 3 30 20 10

1 35 20 15 2 40 25 15 3 45 30 15

D 1 50 30 20 2 55 35 20 3 60 40 20

From the foregoing, it will be seen that the overall range has been in-creased by five cents per day. However, this cost will be more than offset by the reductions inherent in the 0-1 5e/day group.

This recommended wage scale will permit a more meaningful relation-ship between pay and job requirement and provide for merit increases with-in the wage group.

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It will be observed that there are three wage grades without compulsory savings. Such a situation could result in an inmate being discharged without any money. The after-care agencies assure us that such a situation cannot be permitted as it will lead to almost certain recidivism. We would recom-mend, therefore, that every inmate be given, upon release, a sum of money for his immediate post-release needs. Since the size of this amount is be-yond the scope of this report, no recommendation is made in this area.

Income from hobbycraft was studied to determine its effect, if any, on the incentive power of the pay schedule. Our findings, previously submitted in an interim report, indicate that this activity has no adverse effect.

Finally there is the matter of tobacco used as currency. A non-smoker, who earns a reasonable daily wage, may purchase tobacco at the commissary and use it to trade for favours of various kinds, as gambling money, and so forth. Because it has value, it becomes, essentially, a medium of exchange in various undesirable pradices which breach prison regulations.

It becomes practical, therefore, for a prisoner to become "tobacco rich" and thus avoid the basic need for a legitimate income. If left unchecked, this will render the pay program ineffectual. We recommend, therefore, that the currency value of tobacco be destroyed by issuing a free ration of tobacco, at regular periods, to all inmates who wish it.

Although it is probable that other "currencies" will spring up, none has such a wide-spread appeal as tobacco. Therefore it is unlikely that any other will exert the deleterious effect that tobacco does at the moment.

The Monthly Earned Remission Program

The monthly earned remission program was first introduced to the penitentiary service on the 13th July, 1961, with the passing of the Peniten-tiary Act. Article 24 of this Act describes the Earned Remission program as follows:

"Every inmate may, in accordance with the regulations, be credited with three days remission of his sentence in respect to each calendar month during which he has applied himself industriously to his work, and any remission so earned is not subject to forfeiture for any reason".

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This program could be the most powerful incentive to inmate improve-ment in the rehabilitation scheme. To achieve this however, it must be administered objectively and uniformly. Further, it will require periodic audit exaxninations to insure its continued effectiveness.

The Inmate Training Division recently conducted a detailed examina-tion of the institutional quarterly reports on this program. Their report, issued on August 10, 1962, revealed the following data:

1. Only 4-1/2% of all inmates did not receive the full three days Earned Remission. It would appear that the full remission is being granted almost automatically, and as such, the remission program will not provide any incentive to an inmate to progress.

2. The percentage of medium security inmates not receiving full remission was even higher than for the maximum security inmates. Although this fact probably indicates that the maximum security Grading Board is not being nearly strict enough, it also reveals other possible weaknesses in the present operation of the program.

It is recommended that Head Office staff personally observe the ope ra-tion of the Grading Board at each institution for these two purposes:

(a) to see that the grading procedure is thoroughly understood and is operated correctly.

(b) to standardize the operation and interpretation of the grading re-sults throughout each institution in the penitentiary service. Without this step, it will be impossible to compare the results of one institu-tion to another, or to obtain the full incentive value of the Earned Remission program.

Possible Wage Incentive or Bonus System

The possibility has been considered of introducing into the penitentiary industries program, a wage incentive or bonus pay system. In outside indus-try, incentives are used commonly to stimulate production and to lower manufacturing costs. There are several versions to incentive programs with as many names, including piece-work, standard hour incentive plans, etc.

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The success of any incentive program depends upon such factors as the following:

1. Having sufficient work orders and materials on hand at all times to prevent idleness or a slowing down of the work tempo, and to provide for a full day's work.

2. Having good working conditions. This includes having sufficient tools and equipment, properly maintained, and having a reasonable standardization of machine speeds, (where several like machines are used for an operation), package sizes, quality of materials, etc.

3. Having good supervision. This includes adequacy of foreman leadership, operator training, production planning, etc.

4. Having fair and accurately developed work standards that will provide sufficient bonus opportunity to stimulate the workers.

5. Having the program developed, introduced, and operated by experienced and properly trained management personnel.

Probably the greatest weakness to a successful incentive program is the attempt by inexperienced management to operate one.

There are many pitfalls to an incentive program and the above list is included to emphasize this fact. However there are also many advantages to a sound and well managed incentive system, and industry has success-fully utilized incentives for many years.

Among the advantages of an incentive program for the penitentiary industries are the following:

1. An incentive or bonus system will stimulate the will to work among the inmates. This does not necessarily mean that the inmates will work that much harder than they did formerly while working. The production output improvement will be mainly due to the voluntary reduc-tion in idleness that will occur when the inmates are stimulated to produce more by their desire to increase their normal earnings. In effect, as in outside industry, the inmates will be working for themselves and as such, will automatically reduce the amount of idleness that is prevalent now.

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2. A good incentive program will reduce, if not eliminate, that portion of a supervisor's task that is normally the most unpleasant and most difficult. We refer to the problem of getting the inmates to work and keeping them at it. With a successful incentive plan, a supervisor's time would be spent mainly on problems of production planning, operator training, quality control, etc. Naturally, this will also improve the morale and the atmosphere of a work shop.

This is probably the most important advantage of an incentive system for the penitentiary industry program, particularly with the present prevalent problems of sabotage, inmate attitudes, inmate unofficial group organizations, etc. A good incentive will help to reduce these problems.

3. Incentives will greatly improve production output per inmate. Incidents of where the production output has been doubled through the introduction of a bonus system are not uncommon in outside industry.

4. Other advantages are lower manufacturing costs, better working habits for the inmates, and improved product quality.

It is your consultants' recommendation that an incentive system not be considered at this time for the penitentiary industry program. When condi-tions have been improved to the extent that incentives can be operated suc-cessfully, then the possibility of developing and introducing a plan should be considered. We see no reason why a bonus system cannot be successful under the correct conditions. In fact, an incentive procedure would be very helpful to the successful operation of the penitentiary industries program and the proper training of the inmates when other conditions permit.

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PART THREE

CONTROLLING


Ç HAPTER EIGHT

FINANCE AND ACCOUNTING

One of the most effective aids to sound management decision is a sys-tem of planning financial requirements and measuring performance to the plan. To contribute to positive managerial control, the system must incor-porate accuracy and timeliness of reporting as prime features.

This chapter examines present practice and recommends modifications to improve its efficiency.

The terms of reference for this study specified that all developments should be compatible with the Financial Administration Act and we conse-quently reviewed this legislation in some detail. Our findings and under-standings are briefly as follows:

The Penitentiary Service functions in accordance with the Federal Government's fundamental principles of administration and control. Estimates are prepared annually for the following fiscal year and submitted to the Treasury Board for review, consideration, and approval.

- The disbursement of money is authorized by the following three votes:

- - Vote 50 - Administration of the Offices of the Commissioner of Penitentiaries.

- - Vote 55 - Operation and maintenance of penitentiaries, including compensation to discharged inmates, permanently disabled while in penitentiaries.

- - Vote 60 - Construction, improvements and equipment. Additionally, there is an Industrial Revolving Fund of $1,000,000 for the purpose of acquiring, and managing any stores or materials required for penitentiary use.

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- Expenditures are controlled through a centralized accounting and disbursing system. This ensures that payment is made only when the transaction is properly documented and authorized, and when there are sufficient unencumbered funds.

Accounts are kept according to a prescribed system of 'bash account-ing", wherein revenue is recorded in the financial period in which the cash is received, and expenditures are recorded when the actual disbursements are made.

- Financial statements, reflecting the operations for the fiscal period, are contained in the Public Accounts of Canada. They include the financial transactions for the year, as shown by revenues, expendi-tures, assets and liabilities, along with other data and information required by the Act.

CAPITAL

It was ascertained, during the course of our study, that industrial operations were being hampered by a shortage of working capital in the Ind-ustrial Revolving Fund. At one time during our work, orders to the extent of $150,000 could not be processed due to the lack of unencumbered funds. The reason for the shortage of capital was due not to the inadequacy of the Fund, but rather to excessive inventories in relation to requirements. This is borne out by examination of the inventory turnover rate.

The penitentiary rate in 1960 was approximately one turn per annum and in 1961 approximately 0.6 turns per annum. This rate is extremely low by any reasonable criterion.

Clothing materials account for at least 50% of the encumbrance of the Fund. The practice of purchasing once a year is the major contributor to this condition. A very significant reduction in inventory investment could be achieved by the proper planning of production and the scheduling of mater-ials accordingly. This is explained and developed in another section of the report.

Capital Requirements

Although the Industrial Revolving Fund is adequate for present business volumes, this condition will change as business volumes grow.

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Annual Sales

Req'd. Working Capital

$ 3,900,000

6,900,000

11,300,000

17,500,000

25,100,000

$ 1,000,000

1,800,000

2,900,000

4,400,000

6,300,000

As sales increase from $2.2 million to $25 million annually, so will necessary inventories expand. These inventories will include raw material, work in process, and finished goods.

Probably the most reasonable method of forecasting working capital requirements is to examine various ratios of annual net sales to net working capital. Three averages have been selected from the literature on business ratios.

The average needle trades company has a ratio of The average woodworking company has a ratio of The average leather footwear company has a ratio of The average sheet metal company has a ratio of

5.13:1 4.20:1 3.60:1 3.90:1

From this we would select an average ratio of say 4:1. On the basis of forecast sales we can thus project working capital requirements as follows:

INDUSTRIAL ACCOUNTING

If an industrial accounting system is to be of value as a management tool, it must do more than report that funds were used. It must provide, as well, the means of measuring the effectiveness of the use of funds.

Any system of measuring the effectiveness of performance requires a plan or target against which such performance can be assessed. In the case of a commercial manufacturing enterprise, this plan is developed in two stages. First, the volumes and types of products to be manufactured and sold in the period are forecast. This establishes the standard volume of operation.

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The financial requirements of operating at the standard volume are then planned in detail. This plan is usually referred to as the Standard Vo-lume Budget and incorporates estimates of:

1. The amount of fixed capital needed to provide the required manufacturing facilities.

2. The amount of working capital required for inventories and other current assets.

3. The amount of operating expenses to be incurred.

4. The cost of direct material and labour.

5. The revenue from the sale of products.

6. The net profit or loss from the activities.

Two principles are normally incorporated in commercial budgetary accounting practice that are not requirements of the Financial Administra-tion Act.

One is the principle of accrual accounting which requires that receipts and disbursements reported for any period are those resulting from that period's activities.

The other is the principle of product costing which requires that all increments of cost incurred through manufacture (and distribution) be re-flected in the cost of the product.

The use of profitability as a criterion of performance in commercial enterprise underlies the adoption of both of these principles. This item of profitability is, all too often, regarded solely as the number of dollars earned during a period. In actuality it serves far greater purpose as the final measure of managerial success. It is for this reason that we recom-mend a system of accounting which embodies both of these principles.

The development of accounting controls for managerial use is best illustrated by example. To this end an Operating Statement and a Balance Sheet were developed to portray the financial results of the industrial opera-tion at Joyceville for the period ending March 31, 1962.

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Due to the type of accounts maintained at Joyceville many of the figures are approximations made by estimating, analysis by sampling and so forth. The accuracy, however, is sufficient for the purpose of illustrating the net success of the enterprise for the period in question.

Primarily the Operating Statement portrays the proper revenues and costs and measures the success of the management.

The Balance Sheet portrays the liquidity of the business and the fixed capital investment employed.

For proper industrial control it is recommended that Operating State-ments be prepared monthly for each institution and that Balance Sheets be prepared annually.

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Gross Loss: $ 47,167. 70

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Proposed Industrial Operating Statement

Joyceville Institution

For year ending March 31, 1962.

Sales (less Returns)

Cost of Goods Sold

Inventory-April 1, 1961 Purchases-Including Freight

and Duty

Less:

Inventory March 31, 1962

Direct Labour

$ 40,463.97

$15,001.32

74,389. 51

$89,390.83

$53,457.75

$35,933.08

$ 9,667.27

Add Shop Overhead:

Instructors' Salaries Shop Expenses Repairs -Equipment

-Building Retirement of Equipment

$38,050.00 1,374. 21 1,160. 55

502.01 944.55 $42,031.32 87,631. 67

Balance, March 31, 1962 617,449.21 674,366.44

Proposed Industrial Balance Sheet

Joyceville Institution

As at March 31, 1962.

Assets

Current

Inventory-Mar. 31, 1962 Accounts Receivable

Fixed

$ 53,457. 45 3 , 459. 48 56,917.23

Shop Equipment: Machinery $ 78,958.87 Equipment 57,370. 33 Furnishings 785.91 Tools 9,334.10 $146,449.21

Buildings: • Body Shop & Motor

Transport 128,000. 00 Furniture Repair 82,000.00 Gym Equipment Shop 33,000. 00 Tailor Shop 100 ,000. 00 Metal Shop 128,000.00

471,000.00 617,449.21

674,366.44

Liabilities

Current

"I" Liability Account Revenue Liability Sales Tax Payable

Capital Account

$ 56,352. 61 514. 79 49.83 56,917.23

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To facilitate the preparation of the recommended Operating Statement certain modifications of the chart of accounts will be desirable. Although certain accounts are adequate, others require expansion. In some cases new accounts are required. The recommended changes follow in detail:

Sales - A new account is needed to record Sales - Gross and Net.

Inventory - Separate accounts for industrial and non-industrial inventories are required.

Purchases - Separate accounts to segregate industrial from other purchases are necessary.

Direct Labour - A new account is necessary to collect the proper charges for industrial work.

Instructors' Salaries - A new account is necessary to collect the proper charges for industrial instruction.

Repairs to Buildings - A new account is needed to accumulate the cost of re-pairs to the portion of buildings used for industrial purposes.

Retirement of Equipment - Segregation is required to provide a separate account for retirement of industrial equipment.

Shop Equipment - Segregation is required to provide a separate account for industrial equipment.

Buildings - Segregation is required to provide a separate account for indust-rial buildings.

Depreciation

The present system of institutional accounting functions according to the Financial Administration Act. This requires that assets which are charged to budgetary expenditure at the time of acquisition or construction be carried at a nominal value of $1.00. Nevertheless, in an attempt to be as realistic as possible, the original costs of buildings and equipment were utilized in developing the foregoing statements. Realism, however, was not fully achieved to the extent of recognizing use or obsolescence.

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In the usual commercial situation, depreciation is the process of spread-ing the value of a fixed asset over its service life and then incorporating the proper increment into the cost of production. In penitentiary industries, however, it is envisioned that the main value accruing from a system of de-preciation will be in the way of better control of assets and more realistic cost information. Proper classification is the first step in a program to depreciate assets. This requires consideration of matters such as function, length of life, and location. (It is not sufficient, for example, to classify all buildings together without taking into consideration the type of construction.) The second step is to determine the method of apportioning depreciation. One of the most popular is the straight line method which is simple to apply and involves depreciating the total value of the asset equally over its esti-mated life. This method should prove adequate for penitentiary use.

The amount of annual depreciation is usually expressed as a percentage of an asset's cost which can be readily calculated. Salvage values are fre-quently omitted in which event the rate of depreciation is arrived at by divid-ing the estimated life span into 100%. Depreciation rates have been the sub-ject of extensive investigation by authorities in both government and industry. Canadian income tax regulations contain data which should be utilized as a basis for depreciating penitentiary industrial assets and are as follows:

Classification of Assets Percent of Depreciation

Buildings - Brick and stone 5% - Frame and metal 10%

Equipment - Machinery and Tools 20%

Furniture and Fixtures 20%

Automotive Equipment 30%

Roads and Sidewalks 4%

MANUFAC TURING COSTS

There are three general systems in use at present for establishing the manufacturing costs of products made in industrial shops, depending on the end use of the product. Items which are produced for the penitentiary ser-vice are costed as to material only; products for other government depart-ments have, included in their cost, material charges, supervision - at the rate of 10% of the material cost, and labour at 10e per hour. Officer cus-tom work is costed on the basis of material charges, labour at the rate of

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• 05e per hour, and handling charges at the rate of 10% of the material cost. None of these would appear to develop the actual cost of the goods produced.

Elements of Cost

There are three main elements of cost in any manufactured product. First, there is the element of human effort in the form of direct labour. Second, there is the element of direct material, which may be in a raw or processed form. Third, there is the element of overhead, consisting of items which cannot be charged directly to a product.

Direct labour is the effort expended directly upon materials going into a product and generally results in changing the material shape or form. As such, it can be charged directly against a particular product. Direct mater-ial is that material from which a product is made and which, like direct la-bour, can be charged directly to the product. Overhead includes the variety of items used in shop operation which cannot logically be identified with the product. Included in this category are the cost of equipment, buildings, indirect labour such as supervision and administration, and miscellaneous supplies.

The foregoing elements should be incorporated into the manufacturing cost to ensure that it is completely realistic. There are various types of cost systems however, which can be developed to suit the specific needs of a manufacturing enterprise.

In the case of an enterprise that manufactures products to order, a job order method of costing is utilized; all manufacturing costs incurred being charged to the order and accumulated as a total upon completion. This pro-vides the basis for billing. The main advantage of such a system is accur-acy and the main disadvantage is that it is costly to operate.

If an enterprise is of the stock order type, wherein standard products are manufactured on a continuous cycle basis and stocked in anticipation of sales, a system of costing is required to develop the total cost of the manu-facturing process. Unit costs are then established by dividing the total cost of manufacture by the number of units produced.

Both job order and process costs are similar, in that they reflect the actual costs incurred. There is, however, another system wherein the man-ufacturing cost (as it should be under normal conditions) is determined in advance and all variances of actual costs from predetermined costs are ac-counted for. Such a system has substantial advantages. It sets up a goal to

- 134 -

- -

be achieved. It facilitates control over performance by determining the responsibility for variances. Additionally, since standard costs are deter-mined in advance, they provide the basis for sales policies and quotations.

The quality of management decision is influenced by the completeness of available information. Recognizing this, cost information should include all contributing elements. This is not being accomplished however in the present system of costing prison industry work. Labour and overhead are not fully included, and in some instances are being excluded. It is our rec-ommendation that cost of manufacturing should, in the future, include the full amounts of labour, material, and overhead required for production.

Most present and proposed production will be of a type suited to a com-paratively simple standard cost system. Based on an analysis of 1961-62 production, over 90% of all production was either for penitentiaries or for other government departments. The products and volumes were of a nature to warrant control by the analysis of variances between standard and actual costs. The remainder of the work is largely custom and should be costed on a job order system to arrive at a specific manufacturing cost.

Standard Manufacturing Cost

In developing standard costs, the elements should be representative of average costs under normal operating conditions.

1. Material Cost Standards

Material costs are one of the most significant elements in the cost of prison industry products. Material cost standards are developed as follows. If the standard quantity of cloth required for an officer's uniform is 4 yards, and if the standard price of cloth is $4.62 per yard, the standard material cost of the uniform will be $18.48 and will not vary from order to order. Material requirements and specifications will be indicated on bills of mater-ial and parts lists for each product and will thus provide the basis of devel-oping material standard costs.

2. Direct Labour Cost Standards

Labour costs are one of the lesser elements of cost of prison products. However, under any realistic cost system, they must be incorporated. In a system of standard costs, the cost of labour will remain fixed in spite of pay variations and the varying amounts of time taken to perform specific items of work. The determination of the standard labour cost of a product entails multiplying the normal man hours required by the standard labour rate.

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3. Overhead Expense Standards

The development of overhead expense standards requires a somewhat different treatment from that of direct labour or material. This item must be determined as a total figure which is then apportioned over production. There are two types of overhead expense - direct, and indirect. Direct over-head expenses are those relating directly to specific production and include items such as supervisors' salaries, general supplies, etc. , while indirect overhead expenses cannot be related directly to specific production and consist of items such as shop expenses, repairs to buildings and equipment, de-preciation, etc.

Charges such as supervisors' salaries should be apportioned according to the number of employees, while items such as heat, light, and power may be apportioned according to floor space. In any event, the apportioning must be done on production at a normal level and the standard overhead cost ex-pressed in terms of production units.

CONTROL BY STANDARD COSTS

A standard cost system permits control over the various items of manu-facturing cost by means of variance accounts. This is accomplished by mak-ing entries to accounts at a standard cost figure and entering the difference between actual and standard cost in variance accounts. Raw material prices are controlled by utilizing a material price variance account to show the re-lationship between actual materials used and standard material requirements. If there is substantial variation between the actual and the standard, mater-ial usage should be investigated.

Direct labour is controlled in a manner similar to material. Production is charged with standard labour costs which are then compared with the ac-tual payroll labour costs and the differences indicated as a direct labour variance. A substantial variance between actual and standard points up the need for analysis. This will show the reason for the discrepancy and indic-ate the corrective action required.

Overhead expense is similarly controlled except that direct and indirect overhead must each be dealt with separately. The method on which standard cost systems are based is known as control by exception. This method points up only the specific areas requiring management action.

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Job Order Costs

It has been previously recommended that a job order cost system should be utilized where standard costs are not applicable. Officer custom work or orders involving low production or special design are examples. Costing under a job order system involves the accumulation of the cost of actual labour expended and material used to which overhead is added. Direct la-bour charges are comprised of the total inmate hours worked on the job con-verted into monetary terms by application of the appropriate hourly rate. Material charges consist of all materials drawn from stores and utilized on the job, as shown and priced on stores requisitions. Overhead charges for the period should be allocated on the basis of a percentage of direct labour.

TIMEKEEPING

A penitentiary timekeeping system should be designed to record the ac-tual time worked by the inmates and the amount of work produced. This is required for payroll purposes on one hand and the distribution of labour charges and cost control on the other.

In the penitentiary industrial shop, timekeeping should be the responsi-bility of the shop foreman. In a small shop, this may be combined with the shop foreman's regular duties; in a large shop, it may be delegated to cleri-cal personnel. Consequently, regardless of size, it is under the direct supervision of the production authority. It involves the recording of inmate attendance and production. After having been completed and checked in the shop, the timekeeping data should be forwarded to the proper agencies for payroll preparation, and the taking off of cost and production data.

Timekeeping involves two types of records - the attendance record, and the job record. The attendance record indicates who worked, and for how long; the job record indicates the volume of work produced, and the length of time required. The information can be hand recorded, machine recorded, or a combination of both, depending on the size of the activity. Timekeeping records may cover a day's work or a week's work, depending upon the local situation.

The attendance record should be in the form of a time card for each in-mate and normally would cover a period of one week. Starting and finishing time is recorded on the card. The elapsed time (the difference between starting and finishing time) will indicate the time a worker has been in the shop and available for work.

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A separate job record, or time ticket, may be issued for each job work-ed on during the day. Alternatively, all jobs worked on throughout the day may be shown on one ticket, and the time for each job so distributed.

One of the purposes of timekeeping is to record the actual labour costs for comparison with standard. Data gathered through the timekeeping pro-cess is also a valuable source of information for management control of labour. Periodic reports on items such as absence, idle time, and lost time should be developed from this information for the Warden's use.

Specimens of the time cards referred to above are shown below. Exhi-bit 7 illustrates an attendance card. Exhibit 8 illustrates a job record card designed to be issued for each job worked on throughout the day. The total time recorded on all job record cards for each day must equal the total time recorded on the attendance record.

ATTENDANCE RECORD JOB RECORD

Name Name

Number Number

Périod Order Ope ration

In Out In Out Total Part No.

I Quantity Produced

Mon.

Date Tue.

— Start

Stop Wed.

Total

Thur.

Fri.

Shop Foreman Shop Foreman Exhibit 7 - 138 - Exhibit 8

C HAPTER NINE

INDUSTRIAL CONTROLS

Customer satisfaction is the life-blood of any industrial enterprise. Meeting customer requirements then, must be a prime objective of manufac-turing operation if the enterprise is to survive.

Industrial controls are designed to insure that customer requirements regarding price, delivery, and product specification are satisfied.

Techniques for controlling manufacturing costs (which are reflected in selling price) are explained in the preceding chapter on Finance and Account-ing. This chapter deals with the techniques of Production Control and Quali-ty Control. These are designed to insure that customer delivery require-ments and product specifications are met.

PRODUCTION C ONT Ft0 L

It is recognized that one of the basic prerequisites to an industrial acti-vity is a demand for a product. Before a realistic decision as to the extent of any contemplated industrial activity can be made, it is necessary to de-fine the market and assess the potential share of this market that is available to the enterprise. Determination of these factors provides the only logical basis on which to plan the size and location of shops, the methods of manu-facture, production volumes, manpower requirements, raw material and finished goods inventory policy and the other factors involved.

Much has already been done in this area by the Industries Division. Many products for use in all institutions have been standardized, institution-al requirements for these products are surveyed annually and summaries of these requirements form the basis of production releases to the various institutional shops for advance manufacture.

Elsewhere in this report, recommendations have been made to intensify the activity of marketing and to provide a position in the Industries Division with sales forecasting as one of its responsibilities.

- 139 -

As a result of the intensified marketing activity, certain products that are incompatible with the overall program will be discontinued and new pro-ducts introduced to satisfy external market demand. Revised sales fore-casts reflecting the changing character of the market will become the basis for production planning and control. To facilitate production planning and inventory control, the sales forecast should indicate the sales plan by pro-duct by month.

The Production Plan

The Master Production Schedule is the production plan which guides all production activities.

A realistic production plan embodies three features:

- It must be attainable.

- It must satisfy sales requirements.

- It must operate within established inventory policy.

For the plan to be attainable the following items must be available:

- facilities that will accommodate the planned rate of production;

- material in the required quantity and quality to produce products to schedule;

- manpower to process raw material into finished goods.

For the plan to satisfy sales requirements, provision for purchasing lead time and manufacturing lead time must be made to insure that finished products will be available for shipment at the time and in the quantity indic-ated on the sales forecast.

For the plan to operate within established inventory policy, it must pro-vide for the scheduling of raw material in and through the process at a turn-over rate that will support the schedule and not exceed established financial limits.

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These requirements dictate the procedure to be followed to discharge the responsibilities of the Production Planning and Control function success-fully. This procedure is outlined below.

Production Planning and Control Procedure

Step 1 - Develop Master Production Schedule

(a) On receipt of the Sales Forecast, refer to the memo finished goods inventory figure at the start of the period, and the target finished goods in-ventory figure at the end of the period, to determine if a change in inventory is planned.

(b) Where a change in finished goods inventory is planned, plan to pro-duce a quantity equal to total forecast sales plus or minus the desired quan-tity change in finished goods inventory.

(c) Allowing for production lead time and shop capacity, develop a Master Production Schedule showing the required production each month to satisfy forecast sales requirements.

Exhibits 9 and 10 which follow show a simple format for Sales Forecast and Master Production Schedule.

Sales Forecast

Memo Target Item Inventory Jan. Feb. Mar. Apr. May June Inventory

Pail PL-1518(Month) 400 400 600 600 300 200 100 200

(Cum.) 4001000 1600 1900 2100 2200

Item 2 (Month)

(Cum.)

Item 3 (Month)

Exhibit 9

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Master Production Schedule

Item Dec. Jan. Feb. Mar. Apr. May JunÉ

Pail PL-1518 (Month) 333 333 333 333 333 333

(Cum.) 333 666 999 1332 1665 1998

.4------------"-Exhibit 10

The above Master Production Schedule was developed to achieve a planned reduction in Finished Goods Inventory to 200 pails at the end of the period. It will be seen that the schedule would:

(a) achieve inventory objective; (b) provide a constant level of production in the shop; (c) satisfy the sales demand

(See Finished Goods Inventory Record, Exhibit 11)

Finished Goods Inventory Record

Article: Pail, Metal, Galvanized No. PL-1518 8 quart

Date Order No. Detail In Out Balance Dec. 31 Inventory 400

tt Production 333 733 Jan. Production 333 10 66

Sales 400 666 Feb. Production 333 999 tt Sales 600 399

Mar. Production 333 732 t, Sales 600 132

Apr. Production 333 465 tt Sales 300 165

May Production 333 498 tt Sales 200 298

June Sales 100 198

Exhibit 11

It is recommended that a form similar to the above be utilized in the

- 142 -

Marketing Section as a Finished Goods Inventory Report. Individual ship-ments and daily Production Reports would be posted thereon to maintain a current record of inventory position.

- 143 -

20 85 380 30

Bill of Material No. PL-1518

Item: Pail, Metal, Galvanized, 8 Quart

Part

Body

Bottom

Band

Handle Lug

Handle ,Wire

Wire, Rim

Rivet F. H.

Material

24 Ga. CRS Galv

tt

16 Ga. CRS Galv.

tit

7 Ga. steel wire galv.

6 Ga. steel wire

Tinned Steel

Qty. per Unit

40. 8"x11" 1

10"x10" 1

1 -1/2"x28-1/2' 1

2-1/2"x2-1/4" 2

19" 1

35" 1

1/8"diax 1/4" 4

Wght[ Râ, Material Summary (Per C) per C 24 Ga. 16 Ga.

310 310

70 70

65 65

20 20

20

30

Size #6 Wire #7 Wire

20

30

Make or

Buy

(Calculation of monthly requirements x 333 )

100

= 1270

Exhibit 12

284 67 100

Step 2 - Develop Material Requirement Schedule

Basically, the Material Requirement Schedule is developed by determin-ing from the Bill of Material, the material required to produce one finished product, and multiplying each item by the quantity to be produced. The total requirement thus developed is then scheduled for delivery at the usage rate indicated on the Production Schedule. This must be developed far enough in advance to allow for purchasing lead time.

However, where shops have been in operation without inventory planning and control, it is usually found that inventories are out of balance, and that existing stocks of certain raw materials and components are more than re-quired to support production schedules for even long periods in the future. Where this condition exists, it is advisable to take a physical inventory and modify material requirement schedules for items with excessive quantities on hand. When the inventories are in balance and at a level in line with in-ventory policy, the Material Requirement procedure can revert to simple calculation without modification.

It should be pointed out in this connection that in certain cases it is desir-able, for economic and other reasons, to purchase larger quantities than are immediately required (e. g. Lumber in carload lots.)

The Purchasing Section should have the authority for such alternatives (within the confines of established policy and procedure) and when such alter-natives are adopted, should be responsible for balancing supply with require-ments in the long term.

A method of developing material requirements through Bill of Material explosion is outlined below:

Refer to Bill of Material (Exhibit 12), determine raw material require-ments by multiplying summary column 'totals x the production schedule quan-tity. Post the resultant figure to the Raw Material Summary Sheet, as follows (Exhibit 13).

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Apr. Nov. Dec.

Rivet F. H. 1/8" x 1/4"

Other Items

Jan. Feb. Mar.

Exhibit 14

Industries Division Production Material Requirements Schedule

To Director of Purchasing: Date Oct. 19

Please order the following materials for delivery to Kingston Penitentiary in accordance with the following schedule:

24 GaC.R.S. Galv. 16 Ga C. R.S. Galv. #7 Wire

#6 Wire

7620+lbs

XXX

XXX

XXX

1270+

xxx

x.xx

XXX

1270+

xxx

xxx

XXX

1270+

xxx

xxx

XXX

1270+

xxx

xxx

XXX

1270+

lacx

xxx

XXX

1270+

xxx

xxx

XXX

-1—Total Item

XXX

XXX XXX

XXX

XXX

xxx i xxx

XXX XXX

XXX

XXX

XXX

XXX

Raw Material Summary

Product 24 Ga. CRS 16 Ga. CRS #7 Wire #6 Wire Galv. Galv. Steel Galv. Steel Galv. Other Other

Pail PL-1518 1270 284 67 100

Product #2 xxx xxx xxx

Product #3 xxx xxx xxx

TOTAL xxxx xxxx xxxx ' xxxx xxxx xxxx

Exhibit 13

The Raw Material Summary Sheet and a similar Summary Sheet for com-mon purchased components form the basis of the Material Requirements Sche-dule. Separate Material Requirements Schedules are required for each insti-tution. A suggested format is depicted below (Exhibit 14).

- 146 -

Shop Schedules

Information for individual Shop Schedules is developed as part of the pro-cess of establishing the Master Production Schedule.

For example, in the case of pails, assuming that the standard produc-tion rate (shown on the routing sheet) is 60 per day, then it would require 5-1/2 days to produce one month's requirement of pails. Assuming also that the Sales Forecast contains two other products that are made in this shop:

Product 1

Requirement 400/month, Production rate 50 per day

Product 2

Requirement 300/month, Production rate 40 per day, then the Shop Sche-dule would be as shown in Exhibit 15.

- 147 -

Production Schedule Month Nov. 19__

shop Metal Kingston Penitentiary

Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Pail PL-1518 60 S S 60 60 60 60 30 S S S S S S S AU AU AU AU A

Product 1 T N 25 T N 50 50 50 50 50 T N 50 50 25 T N T U D U D U D U D U

Product 2 R A R A R A 20 40 40 R A 40 40 40 40 40 R D Y D Y D Y D Y D A A A A A Y Y Y Y Y

Exhibit 15

Daily production reported against this Schedule provides the basis for production control.

Integration of the various production control steps are illustrated in the Flow Chart, Exhibit 16.

- 149 -

MARKETING !PRODUCTION PLANNING PURCHASING ACCOUNTING MANUFACTURING CUS'IOMER INSTITUTION

ISSUE

SALES

FORECAST

SALES FORECAST DEVELOP ER PROD.

SCHEDULE à

1 i ( ( 1 L. REDMTS.

SCHEDULE

+ MASTER PROD. REQ. MTS.

SCHEDULE SCHEDULE LACE ORDE RECMVE & ARRANGE

DELIVERY TO MATERIAL SCHEDULE

DEVELOP INDIVIDUAL

SHOP SCHEDULES

PRODUCTION SCHEDULE

SHOP "A" G. TO SCHEDULE

à PLACE IN PIN. GOODS

STORAGE

ISSUE DAILY

PRODUCTION REPORT

-

POST 'TO POST PRODUCTION

REPORT

FINISHED CUMULATIVE

SHOP "A"

GOODS PRODUCTION

INVENTORY AGAINST

RECORD SCHEDULE

FINISHED GOODS INVENTORY RECORD L____

POST SALES ORDER FIN. GOODS INVENTORY

I.ECORD ii UM SHIPPING INSTRUC-

TI SHIP

SHIPPING GOODS INSTRUCTION .- TO

p•-....-.. ).......-.

CUITTOMER ..,

ISSUE

INVOICE

Exhibit 16 -150-

1

QUALITY CONTROL

In order for an enterprise to capture its fair share of the market, its product must be attractive to customers from the standpoint of quality, price, delivery and service.

The quality control function contributes in varying degrees to these four factors. Although quality is the prime responsibility of the quality control function, it will be seen that effective quality control will also influence

- price, by minimizing the cost of losses through scrap and rework;

- delivery, by maximizing production of standard product;

- service, by minimizing the release of substandard products to the field.

The quality control function establishes the degree of variation in the attributes of a product that will be acceptable. It also provides the mechan-ism for determining, and reporting, when these established limits are ex-ceeded. The complexity of the product and the process determines the de-gree of refinement necessary to insure positive quality control. However, even with the most simple product and process, standards, methods and pro-cedures must be established, and inspection or test operations performed.

Initially, the design of the product defines product attributes such as material,dimension, finish, and ope rating characteristics. It also specifies acceptable limits of variation. This definition is, in effect, the quality stan-dard and is developed as part of the product design activity.

To insure maximum conformance to the quality standard it is also neces-sary to specify:

- The processes to be used (such as material, time, temperature, etc. required to achieve the desired quality of paint finish).

- The tools to be used in the inspection process (such as gauges and measuring and testing devices)

- The inspection procedures including method, location, frequency, and controls.

- 151 -

Inspection Operations

Inspection operations at the institution will normally fall into the three categories of receiving inspection, process inspection, and product inspec-tion.

Receiving inspection not only insures that raw materials and purchased components meet the required quality standard for production but also pro-vides a check on the performance of suppliers in relation to purchase speci-fications. This activity could be performed by inmates with suitable secur-ity characteristics.

Process inspection insures that the processes being used conform to published process specifications which are designed to achieve the required quality standard in the end product. Certain process inspections of the type -that assess the performance of equipment rather than operators could be performed by inmates. An example would be the stitches per inch in a sew-ing operation.

Product inspection àppraises the quality of parts, sub assemblies, as-semblies, and final product and rejects items that do not meet quality stan-dards. It is not recommended that inmates be used on this activity if the opportunity for passing judgment on the performance of other inmates clear-ly exists. In other cases the use of such personnel would be entirely justi-fied.

- 152 -

CHAPTER TEN

INCREASED REFORM - DECREASED COST

Implementation of the recommendations will unquestionably increase the probability of reform in roughly one-third of the penitentiary population. The effectiveness of the Service in carrying out the program will directly influence the incidence of total reform.

Many estimates have been made of the savings in dollars to society through the rehabilitation of one criminal. Certainly, the total support cost of around $3,000 per annum is eliminated. Beyond this, processing costs as high as $25,000 per conviction have been quoted.

Any attempt to measure the value of rehabilitation in monetary terms, however, is futile. It would be presumptuous to put a price tag on human misery.

Penitentiary operations do cost money, however, and the amount avail-able is limited by public opinion. The real challenge to the Service then, is to operate within this limit, in a manner that will result in maximizing the incidence of totally reformed inmates.

Fortunately, an industrial training program can support itself from revenue derived from the sale of its by-product - the goods which are pro-duced. In addition, with the attainment of higher volumes and greater effi-ciency, it can contribute to the support of other training programs.

An assessment of this potential is portrayed in a Profit and Loss Fore-cast (Exhibit 17). Following this, the derivation of the items in the Fore-cast is explained.

- 153 -

Industries Division Canadian Penitentiary Service

Five Year Forecast of Profit and Loss Year

Item 1. Sales

Cost of Goods Sold Opening Inventory Purchases

Less: Closing Inventory

2. Direct Labour 3. Factory Management 4. Supervision

I 5. Depreciation:Buildings

6. Depreciation: Equipment e- 7. Heat, Light & Power

' 8. Other Factory Expense

Sales & Administration Expe 9. Salaries

10. Travelling Advertising Other

Net Contribution to Penitentia. Operations -

1

$3,900

2$6,900 $ll,300 7,500 ----2-61-.00

$1,200 $1,000 $2,000 $3,500 $5,000

1,800 4,500 7,100 10,300 15,100

3,000 5,500 9,100 13,800 20,100

1,000 2,000 3,500 5,000 .

7,500

2,000 3,500 5,600 8,800 12,600

272 305 335 352 390

181 181 181 181 181

761 853 938 1,012 1,092

198 198 241 294 348

380 426 469 506 546

140 158 172 186 200 ,

571 , 4,503 , 640 6,261 703 8,639 759 12,090 819 16,176

(603) 639 2,661 5,410 8,924

-Ise

921 92 92 92 92

151 15 15 15 15

4 1 8 8 8 4

231 134 23 138 23 138 23 138 23 134 'y

($737) 501 $ 2,523 $ 5,272 $ 8,790

in thousands olf dollars

Exhibit 17

Explanatory Notes

1. Industrial workers in outside industry, on an average, produce goods with a sales value of approximately $23,000 per annum.

By establishing the average productive efficiency of outside workers as 100% then the annual production of inmates working at a relative efficiency of

- 9% * will have a sales value of $2,070 -14% * will have a sales value of $3,220 - 21% * will have a sales value of $4,830 - 30% * will have a sales value of $6,900 -40% * will have a sales value of $9,200

These values were used to determine the volume of sales necessary to support the industrial activities of the inmates assigned.

2. The average labour rate to be paid to a penitentiary industrial worker is 55 cents a day. Based on 260 working days a year the annual inmate labour cost is $143. This amount is used to calculate the direct labour charge for each of the five years.

3. The Factory Management Cost is that which must be incurred to main-tain a production activity of $25.1 million in the fifth year. This total cost is identical in each of the five years since it is realized that this staff will have to be hired long before the attainment of the production goal. The corn-position of this cost is as follows:

12 Assistant Wardens - Industry 10 Planning Assistants 12 Clerks

@ $7,560 = $90,720 @$4,470 = 44,700 @ $3,810 = 45,720

$181,140

* These figures are forecasts of inmate productivity at the various years. At present, inmates are estimated to be producing at 6% of commercial levels. Forecasts are based on an assumption of an accelerating rate of improve-ment which is of a hyperbolic form. It is further assumed that sales will keep pace with this rate of improvement.

- 155 -

4. The Supervision cost is based on the adoption of the recommendations that there be one instructor for every 15 inmates. Based on average weekly salary of $113.00 which is approximately $6,000 per year this represents a cost of $400 per inmate per year.

5. Capitalization of industrial buildings for depreciation purposes was based on the following assumptions:

- 315,000 square feet of shop space is available at existing institutions.

- 80,000 square feet of stockroom and warehouse space is available at existing institutions.

- 86,000 square feet of new construction will be provided at existing institutions.

- 214,000 square feet of space will be provided in new institutions for industrial operations.

- construction can be achieved at $10 per square foot.

- new construction at existing institutions, valued at $860,000, will be completed at the end of the second year.

- industrial space at new institutions valued at $1,700,000 will be avail-able at the end of the third year and the balance, valued at $1,700,000 will be available at the end of the fourth year.

From this, the annual cumulative value of building investment was fore-cast and a depreciation schedule developed. The calculations are shown below (in thousands of dollars). YEAR

1 2 3 4 5

Present building investment 3,950 3,950 3,950 3,950 3,950

Added at existing institutions 860 860 860

Added at new institutions 1,070 2,140 Total building investment(cumulative) 3,950 3,950 4,810 5,880 6,950

Depreciation charge (5%) 198 198 241 294 348

- 156 -

6. The current average capital equipment expenditure per production em-ployee in Canada approximates $1,000. Based on an industrial employment level of 2,729 in the fifth year this represents an equipment investment of $2,729,000 by that year.

Based on a 20% depreciation rate employed on a straight line basis, the depreciation cost over the five years is as follows. This formula is very conservative as it prices present equipment at replacement value.

YEAR

1 2 3 4 5

Total Equipment Re- quirement (cumulative) 1,902 2,132 2,344 2,530 2,729

Depreciation-20% 380 426 469 506 546

( in thousands of dollars)

7. The cost of heat, light, and power is based on past penitentiary exper-ience. Of the total cost of these services approximately 25% is considered to be chargeable to the industrial activity and a total cost of $200,000 is anticipated in the fifth year.

8. Other factory expenses include such items as shop supplies, general re-pairs, and maintenance of industrial facilities. This cost will appropriate $300 per inmate per year.

9. The Salaries cost is that which must be incurred to carry out a sales volume of $25.1 million in the fifth year. This cost, like the factory manage-ment cost, is identical in each of the five years since it is realized that this staff will be necessary before the attainment of the proposed sales volume.

10. The hiring of development officers will result in considerably more travelling expenses than that presently incurred. The amount shown is only an estimate of the travelling expenses of these individuals. Other travelling expenses are included in the "other" category.

- 157 -

PART FIVE

INSTALLING


CHAPTER ELEVEN

A PLAN OF IMPLEMENTATION

The study has identified a number of major problems which hinder the Service in its attempts to rehabilitate inmates through industrial training.

Many recommendations have been made with a view to solving these problems - recommendations which reach into every root and fibre of the Service. There are almost thirty major recommendations and, in addition, numerous minor ones. To attempt their implementation simultaneously throughout the organization would be a task of gargantuan proportion.

Examination of the recommendations discloses that they fall into two distinct groups. Certain of the recommendations deal with the methodology of operation. They stem, to a great extent, from a central philosophy which is presented in the report. No matter how valid any philosophy or theory may appear on the basis of logical argument, actual experimentation should be performed wherever possible, before major commitments are made. This group of recommendations requires a minimum of capital outlay and only minor adjustments to the organizational structure before experiments can be performed.

The second group deals with the physical facilities of expanded plant and equipment. It also deals with major organizational changes. It should be noted that this group is a prerequisite to any good industrial program irres-pective of philosophic considerations.

The implementation of the overall program will demand managerial skill and a concentration of effort which precludes the use of the regular organization. For this reason, the appointment of a full time Implementation Team, headed by a Project Coordinator reporting directly to the Deputy Commissioner, is recommended.

Since the success of the implementation will be in direct proportion to the calibre of the Project Coordinator, his selection should be based on exhaustive analysis and deep deliberation. It is recommended that the Imple-mentation Team be comprised of the Project Coordinator and two capable Assistants with strengths that will compliment the Coordinator's effectiveness.

- 158 -

The team should be given authority to enlist staff assistance from the var-ious Divisions whenever it is required to maintain continuity of the Project.

To implement the recommendations in the first group, it is recommended that a pilot installation be conducted at one institution. An institution should be selected where present conditions approach those recommended in the long term. It should have adequate shop and warehouse space and should be engaged in one of the desirable industries with a reasonably equipped shop.

The purpose of the pilot installation is to test, under actual operating conditions, the various philosophic underlying recommendations for revised methodology. This will provide an opportunity for further refinements, where necessary, to insure the efficiency of methods and procedures in the total installation.

THE PILOT INSTALLATION

To minimize misunderstanding, it is imperative that the Commissioner announce the Service's new objectives regarding industrial shop operations prior to launching the Pilot Installation.

This announcement should clarify policy regarding:

- delegation of line authority to the Wardens

- inmate pay and incentives

- classification

- inmate program assignment

- etc.

After the policy announcement, the appropriate Headquarters staff divi-sions must revise and publish methods and procedures in line with revised policy, such as:

- inmate pay scales

- inmate incentive procedures

- classification procedures

- inmate training methods (academic, vocational and industrial)

- quality control procedures

- code of discipline and safety. - 159 -

Detailed below are the steps recommended for the pilot installation.

(a) Select the institution to be used for the pilot installation.

(b) Delegate line responsibility and authority to the Warden.

(c) Transfer qualified officers from other institutions, if necessary, to provide a full staff complement of Assistant Warden - Industries, Plan-ning Assistant, Records, Clerk, and Inspector, and to maintain an in-mate-foreman ratio of not over 15:1. The staff selected must have the qualification, energy, and imagination necessary to deal competently with the many adjustments and changes that will arise.

(d) Select inmates for the pilot group using testing procedures expanded to the degree necessary to insure a high probability of success in the pro-cess. This may require the temporary transfer of qualified classifica-tion personnel from another institution.

(e) Revise industrial shop layouts and put equipment in good operating con-dition, where necessary. It may be found advisable also to transfer some equipment from other institutions to bring the shop complement to as near the desirable level as possible for the pilot run.

(f) Reschedule inmate non-industrial activities and programs in a manner that will allow 7-1/2 hours shop work each day (5 days a week).

(g) Introduce revised pay schedules at the inception of the pilot run and key in remission of sentence and other privileges, with performance, in all programs simultaneously.

(h) Divert some production from other institutions in the region, if necessary, to provide the required volume of work, thereby simulating conditions under a fully expanded sales program.

(i) Introduée Quality Control procedures.

(j) Enforce the Code of Discipline and Shop Safety Rules.

- 160 -

THE TOTAL INSTALLATION

Announcement of additional policies and publication of related procedures is necessary prior to the general installation of the total plan.

This will contribute to a smooth running installation by acquainting all interested personnel with official policy on matters such as:

- organization,

- finished goods inventory,

- marketing,

- standardization of product line,

- management controls,

- etc.

Similarly, the detailed methods of implementing policy will be spelled out in procedures covering such areas as:

- Responsibility and authority attached to various positions,

- Salary levels,

- Sales,

- Production Engineering,

- Production Control,

- Industrial Accounting,

- etc.

Detailed below are the steps recommended for the Total Installation:

(a) Reassign Industries Division Staff.

(b) Appoint new Industries Division Staff.

(c) Appoint new Classification Office rs.

- 161 -

(d) Appoint new Inmate Training Instructors.

(e) Appoint new Institutional Industries staffs including inmate Lead Hands.

(f) Indoctrinate and train new appointees.

(g) Specify shop and warehouse space requirements.

(h) Procure additional shop and warehouse space.

(i) Specify additional industrial equipment requirements.

(j) Procure additional industrial equipment requirements.

(k) Specify equipment transfers.

(1) Transfer equipment.

(m) Install equipment.

(n) Intensify classification procedures.

(o) Increase percentage of inmates assigned to academic, vocational, and industrial programs.

(p) Decrease percentage of inmates assigned to maintenance and agricultural programs.

(q) Increase sales activity.

(r) Institute pilot run shop conditions such as 7-1/2 hour work day, revised pay and incentives, quality control, discipline and safety rules in all industrial shops.

(s) Introduce production schedules.

(t) Introduce industrial cost controls.

(u) Issue monthly Operating statements and annual Balance Sheets for all industrial operations.

- 162 -

ESTABLISHING A TIMETABLE

The complexity of administering the total implementation plan cannot be overemphasized. Undoubtedly, the most important requirement is the dev-elopment of an installation timetable which assigns responsibility for each step of the plan, indicates priorities, and estimates the time required for the completion of individual tasks. Without this it would be impossible to maintain any semblance of control and coordination of the multitude of tasks necessary to achieve the objective on schedule.

Several steps are involved in the development of such a timetable.

First, a list of all functional objectives is prepared, such as:

- Revise organization at headquarters and the institutions.

- Increase sales to $25 million in 5 years.

- Increase shop capacity and modernize equipment.

- etc.

These functional objectives are then designated as projects. Responsi-bility for each project is assigned and a complete list of the tasks necessary to achieve each objective is developed. For example,

Project A: Revise organization Responsibility: Director 0 81 A

Tasks:

1. Prepare revised Organization Charts

2. Write Position Descriptions

3. Re-evaluate salary levels

4. Select personnel and appoint to new and revised positions

- 163 -

The officer responsible for each project would then assign responsibili-ty for each task to members of his staff, establish priority sequence, and estimate time required for the performance of each task.

The accumulated information, similarly prepared for all projects, be-comes the raw material from which the installation timetable is developed. The preparation of the overall timetable must give recognition to the differ-ences between tasks that can be performed concurrently and those that must be performed sequentially. This will identify **bottlenecks" that require special consideration. An installation timetable thus developed becomes the Master Plan by which positive progress control can be achieved.

- 164 -

APPENDIX

Page

FIGURE I : Penitentiary Populations 165

FIGURE II : Penitentiary Population Forecast 167

FIGURE III: Bed Frame Assembly Layout 169

FIGURE IV: Mail Bag Shop Layout 170

FIGURE V Clothing Shop Layout 171

SCHEDULE k Report on Classification Procedures in the Kingston Area 172

SCHEDULE It An Analysis of Farming Operations 180

SCHEDULE C: Listing of Consumers and Non-Consumers Contacted During Market Research Study 183

SCHEDULE D: Supporting Data (Product List) 197

SCHEDULE E: Shop Equipment Lists 202

SCHEDULE F: Summary of Daily Inmate Program 215

/(0

FIGURE II

Penitentiary Population Forecast

Year 1958 1959 1960 1961 ., 1962 1963 1964 1965 1966 1967 . Increase (8. 7% (6M (6.3%) (6.3% (6V (67 ) (69D (6%) (69 )

Eastern Maximum 513 516 549 582 617 654 693 734 778

' Medium 1,027 1,035 1,102 1,169 1,239 ' 1,313 1,392 1,476 1,564 Minimum 514 516 548 581 817 654 693 734 778 Y.08 555 558 594 631 708 750 795 843..

2,451 2,609 2,625 2,793 2,963 3,141 3,329 3,528 3,739 3,963 i

Centril Maximum 471 474 505 536 568 602 638 676 717 Medium 948 956 1 018 1,080 1 144 1 212 1,285 1,363 1,446 Y in mum 4- --45 53 ;T: if ; 7: 1 Y. Os 148 149 158 167 178 189 200 212 225

1,867 2,042 2,056 2,186 2,319 2,458 2,605 2,761 2,927 3,105

Western Maximum ...-- 338- 340 362 394 417 442 468 496 526 Medium 679 685 816 865 917 972 1,030 Minimum 340 340 362 394 417 496 526

•Y. Os 173 ' 172 182 192 205 217 230 - 244 258 1,367 1,530 1,537 1,635 1,750 1,855 1,965 2,083 2,208 2,340

.t .-

Total 5,685 6,181 6,218 6,814 7,032 (a)7,454 (a)7,900 (a)8,372 (a)8,874 (a)9,408 • . ,

(a) This forecast does not include a possible 250 Doukhobour inmates for whom accommodation must be provided.

FIGURE II

Future Inmate Population Levels

Between 1948 and 1958, the total penitentiary population increased from 3,851 to 5,685 or a percentage increase of approximately 50%.

As the female inmate population remains fairly constant and in any case does not affect the study, it has been omitted from the calculations from 1958 on.

The percentage increases shown on the table are actual up to March, 1962. The percentage increases for 1962, 1963, 1964, 1965 and 1966 are assumed, and as there is no pattern established, it must be assumed that 1958 was an abnormally bad year and 1959 was an abnormally good year. 1960 and 1961 are assumed to be normal, and it seems most probable that 1962, having already nearly reached the 7,200 mark, will experience, at least, the prognosticated 6% increase.

The overall percentage increase in population for the ten years 1958 to 1967 inclusive, as shown, is approximately 65%.

The maximum, medium and minimum type inmates are calculated on a basis of approximately 25% maximum, 50% medium and 25% minimum of the total adult male population. Numbers of young offenders are based on the actual 1958 young offenders population by regions. These are inmates under 21 years of age. An overall annual percentage increase is added to that figure.

It must be understood that this forecast will be affected by many factors, such as:

a) changes in the average length of sentences;

b) changes of policy of the Parole Board;

c) increased Probation Service;

d) increases or decreases in outbreaks of anti-social activities, such as the latest Doukhobour terrorism;

e) the rate of increase of the Canadian population; and

f) economic conditions, such as depressions or periods of great pros-perity.

- 168 -

I I GRINDING TABLE ASSEMBLY TABLES

cJ = DRILL LATHE PRESS ABRASIVE

CUT-OFF MACHINE

cJ POWER BENDER

METAL

STORAGE

RACKS

PAINTING AFtEA

I

CLEANING TANKS

TOOL STORES TOILETS I OFFICE

FIGURE I

Scale: a = 1 Foot

DEPARTMENT OF JUSTICE

LEC LERC INST1T UTION

PROPOSED LAYOUT FOR BED SHOP

(FRAME ASSEMBLY)

FIGURE 2

\ MACHINE SHOP

r.-- STORES

Il

PLAN

OFFICE

8

11■MM

El I 6 I EJEJiJI 4 3

J 22B J -7; 23

9 9 9 9 9 9 9

10

linmEgmEnnuml

16 16

16 16

16 16

16 16

111■1.

I 19 1

•■■■■■

17

m■Im

15 13

11..■M

1■•••■11

12

■-■J

I 21

14

20

LEGEND

A PURCHASED CANVAS ROLLS APPROX. 150# 13 TRIM & FOLD FOR MARK FOR GROMMET (3'-0" x 16'41 , 1 ROLL UNCOILER 14 MARK FOR GROIVIMET (3'-0" x 16'41

2 SHEAR 15 PUNCH FOR GROMMET

3 CUTTING & FOLDING TABLE (3' -0" x 24'-0) 16 INSTALL GROMMETS, FOOT PRESS M-239 4 MARK FOR LEATHERS 17 STORAGE TABLE (3'-0 " x 20.-01

5 SEWING MACHINES 42-5, SEW LEATHERS TO BAG 18 PUNCH FOR ROPE, FOOT PRESS 6 STORAGE TABLE (3'-0" x 10'-0") 19 INSERT ROPE IN BAG (3'-0" x 16'41

7 SEWING MACHINES 111-15 SEW INSIDE SEAMS 20 PUT ON LABEL CASE (3'-0" x 10'-0")

8 FOLD TOPS (3' -0" x 16'-0") 21 PUT FERRULES ON ROPE (3'-0" x 12'-01

9 SEWING MACHINES 132K6 SEW TOPS 22A INSPECT & PILE (3'-0" x 12`-01 , 22B REJECT TABLE (3'-0" x 12'-01 10 TURN RIGHT SIDE OUT & 'SQUARE CORNERS

11 SEWING MACHINES 42-5, SEW OUTSIDE SEAMS 23 STENCIL & FOLD (3'-0" x 30-01

12 FOLD FOR TRIM (3-0x 16'-01 B FINISHED BAGS -9 FOLDED & INSERTED INTO ONE BAG TO OBTAIN COUNTS OF TEN

NOTE

AISLES: 4'-0" TO WALL OVERALL WIDTH: 48' -0" OVERALL LENGTH: 108-0" PLUS OFFICE, TOILETS, MACHINE SHOP ETC.

Scale: = 1 Foot


KINGSTON PENITENTIARY

MAIL BAG DEP'T. BLDG C5C

PROPOSED SHOP LAYOUT

1

LEGEND

Material to Cut Cloth Laying and Cutting Tables Sewing Machines Stearn Presses Packing Area

A 1 2 3 B

0 0 2

FIGURE 3

1 1 i 1 I i I i A

1■111

B 3

rm.. •■••

a a

111

Scale: .. . 1 Foot


CLOTHING SliOP

3

Mum/

r1 I iD D y

li- 13 çl

IT a p

i i - E i 9

a a 12

- a 0

1

D D

12

Er o

I 5_ I .

1 i 1 a çl

Ur CI 1; 1

o a y

SCHEDULE A

REPORT ON CLASSIFICATION PROCEDURES IN THE KINGSTON AREA

This report is in three sections. First, an objective description of what operating policy, methods and procedures are presently existent in the Kingston area classification program. Second, general comments on this program and suggestions for improvement. Third, specific proposals for implementing these suggestions.

A. The Present Classification Program

Kingston Penitentiary has a dual function. It operates as a maximum security institution for hardened criminals of long sentence or serious crime. It also functions as a reception and classification centre for the entire King-ston area. This area comprises Kingston Penitentiary, two medium security institutions at Collin's Bay and Joyceville and an associated minimum secur-ity farm camp. An average of one hundred new inmates each month are pro-cessed by the Kingston classification department.

This classification department is comprised of a Superintendent, two Classification Officers, five Assistants and two Psychologists. It is the res-ponsibility of this department to recommend where each new inmate will serve the time of his sentence, i. e. , - in Kingston Penitentiary, Collin's Bay Vo-cational Training Medium Security Institution or Joyceville Medium Security Institution. The department is also responsible for recommendations regard-ing re-classification of inmates who have requested transfer to another insti-tution other than the one in which they are confined.

Classification decisions are made by the Area Selection Board. This Board is comprised of the Classification Superintendents (Chief Classifica-tion Officers) and Deputy Wardens of the three Kingston area institutions and one of the psychologists. The Board meets weekly. Each inmate to be classified appears briefly before the Board to answer questions or support his individual preference for location. The final decision of the Board is given to each inmate verbally in the presence of the entire Board. Any quali-fications, reservations or stipulations associated with the inmate's classifi-cation are also explained to him personally in the presence of the Board, e.g. , inmates classified for Joyceville are told that they must attend a four week classroom educational program upon arrival at this institution.

- 172 -

Decisions of the Area Selection Board are based upon the following mat-erial:

Information on the inmate's social, educational and occupational history. This data is obtained in a classification interview of approximately one hour's duration conducted by one of the Classification Officers or Assis-tants. This interview generally takes place about three weeks alter the inmate's arrival at Kingston Penitentiary.

(b) The inmate's previous prison history and criminal record documented in his Federal Penitentiaries Service Record.

(c) The results of psychological tests. At present only two tests are used. The Beta Intelligence Test is a non-verbal measure which provides an estimate of overall intellectual capacity. The Minnesota Multiphasic Personality Inventory (MMPI), a self-report pencil and paper test, is designed to indicate various important abnormal characteristics. In the classification program, it serves as a general screen for emotional dis-turbance or poor prison adjustment. These tests are administered and scored by a clerk. The psychologist never meets the inmate personally for an evaluation interview or to verify, in a face to face situation, the results of the two tests administered. The psychologist prepares his report solely on the basis of his examination and interpretation of test results.

(d) The stated location preference of the inmate, especially where this pre-ference involves a desire to undertake vocational training or to work in a particular industrial shop.

Any one of the following factors is automatically prohibitive of transfer out of Kingston Penitentiary: drug addiction, sex offences, long sentence, previous escape attempt, low I. Q. , and disturbed or violent prison adjust-ment.

Traditionally, Collin's Bay Vocational Training Institution accepts young, trainable, first offenders with minor records and short sentences, average or better intelligence, a minimum of Grade Eight education and stable prison adjustment. Joyceville accepts the older inmates with short times to serve -- the medium security risks. Kingston Penitentiary keeps the balance --

the dope addicts, sex offenders, violent maladjusted cases, inmates of low mentality and/or education.

(a)

- 173 -

L

Inmates transferred to Collin's Bay`fall under the jurisdiction of this institution's classification department. This department recommends, on the basis of interviews, whether or not the inmate will undertake formal vocational training and, if so, what trade he will enter. Those inmates who do not qualify for vocational training, because of interest or background, are assigned a particular job in one of the industrial shops or in maintenance. Collin's Bay has facilities for training only 120 inmates or one quarter of its population each year. Consequently, many inmates who are interested in formal vocational training and are educationally qualified go without voca-tional training because of lack of facilities.

Inmates transferred to Joyceville, or remaining in Kingston Penitentiary, are given a job by the Work Assignment Board of these institutions. Here, decisions are based on the work load to be handled, the inmate's record and demonstrated job skill, and the personal preferences of the section and de-partment supervisors.

B. Comments on the Present Classification Program and Suggestions for Improvement

At present, classification decisions appear to be based almost entirely upon the security risk of the inmate rather than upon his rehabilitation poten-tial or genuine desire for shop training and experience. For example, an older inmate with a short time remaining to serve recently told the Area Selection Board that he wanted to remain in Kingston Penitentiary to keep up his job skill as a welder in that institution's machine shop. Despite this re-quest and the fact that there is very little welding done at Joyceville, this inmate was transferred simply because he fit the security risk type found at Joyceville.

The security risk of an inmate and his rehabilitation potential are not necessarily correlative. The inmate who tries to escape is not necessarily unreformable or incapable of rehabilitation. Moreover, the model prisoner who never makes trouble for the administration can be, and is often, the sort of inmate who wants to "do his time" as easily as possible and who has no desire to change his rather lazy criminal ways in favour of acquiring a trade. A classification program which places more emphasis upon the secur-ity risk of an inmate than upon his potential for rehabilitation will undoubtedly reduce the number of successful escapes and make the work of the custodial department easier. Such a program tends to view prison confinement purely as social revenge or punishment and not as an instrument of reform and re-habilitation. By following such an improper operating policy, the Classifica-tion Department unconsciously hampers the work of the Treatment and

- 174 -

Training Division. Inmates who perhaps could be rehabilitated are denied the privileges of vocational training or experience in certain industrial shops because of their security risk. Other inmates who never cause trouble but are doubtful prospects for reform are offered the opportunity to learn a trade or gain shop experience.

At present, many inmates do not complete the psychological test mater-ial or classification interview until a month after they have been in Kingston Penitentiary. By this time, they have been thoroughly indoctrinated with the "inmate code" and traditional inmate attitudes toward classification and psy-chological tests. This indoctrination cannot help but bias the inmate's parti-cipation in present classification procedures, rendering them less valid or effective. The causes of this time lapse are many ana difficult to isolate. Partially at fault, however, are conflicting demanas upon the inmate's avail-able time and a poorly coordinated "pick up" system. A definite effort should be made to process inmates through the Classification Department as soon as possible after their arrival at Kingston Penitentiary. In order to bring this about it may be necesSary to give the Classification Department priority on the inmate's available time. A more efficient and well coordinated system of assigning "pick up" officers would also expedite the process.

The existing psychological procedures used in the classification program are barely adequate. Essentially this is due to the combined effects of heavy work loads and insufficient staff.

A recent "Statement of Duties" prepared in Ottawa stipulated that the psychologist will "interview all new admissions", 'Interpret psychological tests", "summarize his findings", "carry out individual and group counsel-ling", "assess staff applicants and officers applying for advancement". At present the two psychologists in the Kingston area do not "interview all new admissions". They spend about 80% of their time interpreting psychologi-cal tests and writing reports. They are allowed little time for group or individual counselling and none for research. The assessments they make of administration personnel are not kept confidential, making their working relations most difficult.

The present psychological evaluation serves only as a very rough screen-ing device of intelligence and emotional adjustment. Moreover, this evalu-ation, and the comments of the psychologist, carry little or no weight in the decisions of the Area Selection Board. In a recent case, the psychologist strongly recommended that an inmate not be sent to Collin's Bay because of disturbed prison adjustment but the Board paid no heea to the psychologist's comments.

- 175 -

If the psychological evaluation is to carry more weight in classification decisions, it must be made more effective. This can be brought about only by adding new personnel. It is essential that the psychologist meet with each inmate for an hour-long interview in order to validate obtained test results and round out his evaluation. Time should also be provided for test research and validation.

More importantly, psychological counselling, both group and individual, is now denied inmates who could potentially be helped. This counselling ser-vice must be made available especially for those inmates at Collin's Bay who are judged to have a high potential for rehabilitation. An essential must is a psychologist for Collin's Bay. This man would provide group and indiv-idual counselling. He would also assist the Collin's Bay classification offic-ers in assigning inmates to vocational training and appropriate industrial shops. Here additional tests of industrial aptitude could and should be used, e. g. , the Differential Aptitude Tests (DAT), or the Factored Aptitude Tests published by Industrial Psychology, Inc. These tests could also be used in Kingston and at Joyceville with the advent of a larger psychological staff.

In order to make the psychologist's working relations with other admini-stration personnel more effective, all evaluations of such personnel should be prepared in Ottawa and not by the area psychologists.

A larger psychological staff comprising three psychologists at Kingston Penitentiary and one at Collin's Bay is necessary in order that all those duties expected of the psychologist may be carried out effectively. A larger staff would facilitate a more comprehensive evaluation program involving an individual interview and the use of additional tests, including those aptitude tests related to performance in industry. Staff additions would also provide time for vital test research and development. Most importantly, an expand-ed psychological staff would be able to provide the crucial inmate counselling service now virtually non-existent in the Kingston area. The present psy-chological establishment is inadequate for effective classification, under-staffed for essential counselling, and intolerable for the psychologist.

Formal classroom education is almost non-existent in the Kingston area. In this same area, the mean educational level of inmates is about Grade Five. The Educational Officer in Kingston Penitentiary functions as little better than a librarian. No formal classes are held. Existing classroom facilities are rundown and meagre but could accommodate a small number of educa-tionally minded inmates. The inhibiting factor appears to be a negative

- 176 -

attitude toward formal education on the part of both inmates and custodial personnel. Symptomatic of this attitude is the "I'm afraid you'll have to go to school for a month" apology given to inmates upon transfer to Joyceville. The inmate who wants to raise his educational level is laughed at by his peers and discouraged by the administration. Formal grade school education should be provided. To facilitate such training a number of steps are required. First, adoption of a positive attitude toward education by administration per-sonnel. The classroom should be made a privilege, not an embarrassing chore. Second, enlargement of the physical classroom facilities and teach-ing staff available. Third, establishment of priority on the inmates' avail-able time for classroom activity.

Existing classification procedures in the Kingston area are adequate for separating out those inmates who show very strong promise for reform. Such a decision, however, could probably be made on the basis of common sense and casual observation alone. The present procedures are inadequate and improperly founded when they attempt to isolate the borderline cases -- inmates who show marginal promise for reform. Often the rush to process quickly and alleviate overcrowding leads to slipshod attention to all the de-tails of an inmate's case. Moreover, an operating policy which places more emphasis upon an inmate's security risk than upon his rehabilitation potential must necessarily overlook men who could be reformed. Finally, insufficient psychological staff results in an inadequate consideration of an inmate's psychological potential for reform.

It is the expressed purpose of the Canadian Penal System to rehabilitate as well as punish and confine inmates. The entire Treatment and Training Division is founded on this first principle. At present, the Classification Department makes its recommendations primarily upon an inmate's security risk, not upon his rehabilitation potential. The result -- the intentions and good works of the Treatment and Training people are undermined and made less effective. It is essential that the operating practices of these two branches be brought into closer accord.

Specific Proposals for Improving the Classification Program

1. A basic change in the operating policy underlying the classification pro-gram. Inmates should be classified according to their judged potential for reform, not, as at present, according to their security risk. Less attention should be paid to length of sentence, age, nature of crime and previous escape attempts. More attention should be paid to psycholog-ical factors, intelligence, educational level and demonstrated desire to reform.

- 177 -

2. Elimination of delay between the time an inmate arrives at Kingston Penitentiary and the time he is classified. Expedite this matter by giving classification a priority on an inmate's time and by providing a more efficient well coordinated system of assigning 'Dick up" officers.

3. Enlargement of existing psychological staff. A minimum of three psy-chologists should be provided for Kingston Penitentiary. A psychologist for Collin's Bay must be secured immediately.

4. Change in exiSting psychological procedures to allow time for at least a one-hour psychological interview for each inmate before classification.

5. Encouragement and facilitation of psychological test research and dev-elopment.

6. Provision for considerably expanded programs of group and individual psychological counselling. This is especially important at Collin's Bay.

7. Use of new and additional psychological aptitude tests to measure an inmate's capability for industrial shop work.

8. Psychological evaluation of administration personnel to be carried out in Ottawa or by headquarter's psychologist, definitely not by area psy-chologists.

9. Provision of formal classroom education. Priority on inmate's time should be given to classroom education. Teaching facilities and staff should be expanded. Education should be made a privilege, not a chore.

D. Summary

A brief outline of the existing classification program and procedures in the Kingston area has been given.

These procedures are found adequate to isolate those inmates who show very strong promise for rehabilitation. The present program, however, is much less effective in properly classifying the borderline cases, or those inmates who show only marginal promise for reform.

Much of the present ineffectiveness is due to the basic operating policy of the classification program. At present, more emphasis is placed upon an inmate's security risk than upon his potential for rehabilitation. Ways of altering this policy so that it will be in greater accord with the practices of the Treatment and Training Department have been offered.

- 178 -

A need for early classification of new arrivals in Kingston Penitentiary is recognized. Suggestions are offered for preventing time delays in the classification program.

Because of heavy work loads and short staffs present psychological pro-cedures are found barely adequate. A complement of four psychologists in the Kingston area, three at Kingston Penitentiary and one at Collin's Bay is proposed. The use of additional measures of industrial aptitude is suggest-ed. Enlarged group and individual psychological counselling services are deemed a necessity. Test research and development is suggested for great-er psychological effectiveness and advancement. It is proposed that psychol-ogical evaluation of administration personnel be conducted in Ottawa or by a Headquarter's psychologist.

Educational facilities at Kingston Penitentiary are found sorely lacking. Classroom education is proposed. Suggestions are offered for implementing such a program.

- 179 -

SCHEDULE B AN ANALYSIS OF FARMING OPERATIONS

The objectives of the farming operations are generally to meet the demands of the parent institution. Consequently, there is a wide variety of activities in each farm and little tendency to specialize, except where there may be two or more farm camps serving more than one institution in an area.

The farming operations in the institutions have been analyzed in some detail in order to estimate the number of inmates required. Farming operations, at Joyceville and Collin's Bay were studied in detail to observe the assignment of inmates, the degree of mechanization, the utilization of equip-ment, and to obtain a general picture of the farming activities.

From these observations, and from data supplied by the Director of Farms on present and proposed activities, the number of inmates required to conduct the farming operations in each institution was estimated as out-lined below.

Basic Assumptions

This study is based on two assumptions. First, that except where speci-fically stated to the contrary, the nature of the farming activities in future will be essentially the same as at the present time. That is, those institu-tions with a dairy herd will continue in this field, thJse with certain acre-ages under vegetables will continue to have approxirrately the same acreage with essentially the same mix of vegetables. A specific exception is found at Kingston and Joyceville. The farming operation in the latter institution is being terminated and the pig operation is being transferred to Joyceville. Consequently, in estimating future manpower demands, it has been assumed that inmates from Joyceville farm camp will be tending the pigs.

The second assumption is that a productivity rate of 40% of that of em-ployees in a commercial undertaking can be achieved (assuming a compar-able degree of mechanization and equipment).

From observations made in the two institutions in the Kingston area it appears that the degree of mechanization and utilization of equipment com-pares more than favourably with commercial enterprises which generally speaking are much smaller, and therefore less able to justify extensive investment in capital equipment.

Basis of Calculations

Studies carried out in a number of farming enterprises have shown that there is a definite relationship between the volume of work, measured by the number of acres under crops, or the number of cattle, etc. , and the number of employees required.

- 180 -

per acre tt tt

11: If

tf ft

tt

tt tt

SCHEDULE B

These relationships, expressed in the number of men required per year per unit of activity, which may be an acre of land, a ton of grain, or 100 poultry or head of cattle, are as follows:

Livestock: -

Dairy cows .037 men per head Beef cows .017 it FP Pt

Bulls .017 9, II, t,

Sows (with pigs to weaning) .013 tt rt

Pigs raised-weaning to market .01 " " " Hens - layers .04 men per 100 hens Hens - non layers .003 rt fur tt

C rops: -

Cereals, Hay, etc. .0033 men Silage, corn or grass .0083 " Potatoes, Roots, etc. .03 Tomatoes .04 " Vegetables .04 te Fruits .033 "

Lawns .07 Flower gardens, herbaceous borders . 28

tt Pt tt

tt tt tt

The above figures have been developed for the pure production opera-tions stated. They do not include the requirements for associated operations such as mixing feed, running a dairy, or operating an abattoir, many of which exist in the institutions. In addition, there are miscellaneous activities such as maintenance, fence repairs, whitewashing, etc. which both require additional manpower and serve as a source of extra labour during periods of peak demand such as the tomato pick season.

From an understanding of the above factors,detailed calculations of the average manpower requirements were made as shown in Exhibit 16. The

- 181 -

SCHEDULE B results are tabulated below.

Optimum Farm Present Farm Institution Manpower Manpower

Joyceville (including cannery) 44 77

St. Vincent de Paul 43 65

Dorchester 34 60

Manitoba 28 45

Saskatchewan 34 67

Collin's Bay 30 44

213 358

The above figures represent the average employment throughout the year. Because of seasonal demands, the actual requirements may some-times exceed these average figures, but the fluctuations will be reduced be-cause of the diversity of activities with varying peak seasons.

- 182 -

A

Farm

22 acres .88 --

50 acres 1.51 350 acres .68 90 head 1.51 33 head 1.21 44 head .74

215 acres .72 - -

525 acres 1.75

9.0

22-1/2

2 30 acres 5

1 2 2

15 acres .61

70 head 2.64 90 head 1.52 1,700 .69 1,500 .05

125 acres .43 30 acres .25 75 acres .63 200 acres .68

7.50

19

30 acres 5

1 1 4

Manitoba New Westminster Production Man Production Man

Equivalents E i_nivalents

Saskatchewan Collins Bay Production Man Production kiln_

Equivalents Equivalents

44 43 30 34

Total number of inmates required 34 28

65. 67 44 Present Manpower 77 60 45

EXHIBIT 16

Item Jovceville St. Vincent de Paul

Production Man Production Man E Iale_nts Equivalents

Vegetables 27 acres 1.04 70 acres 2.74 Roots -- -- Potatoes -- -- Hogs 270 .50 800 1.51 Beef Cattle 200 3.20 -- Dairy Cows -- 36 head 1.29 Dry Cows -- 38 head . 62 Hens - Layers 1,400 ) . 54

Non-Layers 500 )

Hay 60 acres .19 127 acres .41 Ensilage-corn 30 acres .24 11 acres .09

grass 25 acres .20 45 acres .36 Grain 45 acres .13 126 acres .44

Total 5.50

Assuming that inmate productivity is 40% of commercial undertaking, number of inmates required= 14 20

Abattoir 2 2 Ornamental Grounds 15 acres 8 35 acres 6 Cannery 15 8 Dairy 1 Mixing Feed 1 2 Fence repairs, etc. 4 4

Farming Orations - Inmate Manpower Requirements

Dorchester Production Man

Equivalents

32 acres 1.27 13 acres .53 15 acres .44 -- . 32 acres .95 44 acres 1.36 306 .59 240 .48 No

-- 22 head .38 36 he ad 1.29 20 head .75 Longer 70 head 1.16 32 head .55 1,300 . 51 1,200 .49 Operating

400 700 .5

113 acres .37 153 acres .53 -- 35 acres .30

95 acres .78 50 acres .43 169 acres .64 350 acres 1.20

20 17

2 2 50 acres 5 60 acres 4 30 acres 5

1 1 2 2 4 2

SCHEDULE C

LISTING OF CONSUMERS AND NON-CONSUMERS CONTACTED DURING MARKETING RESEARCH STUDY


Department Individual Position

Citizenship and Immigration Mr. J. H. Gordon Chief - Welfare Div. Mr. H. E. Reaume Chief Purchasing

Agent Mr. G. V. Simard Purchasing Officer

Defence Production Mr. D. M. Erskine Director - General Purchasing Branch

Mr. E. J. Delisle Purchasing Agent - General Supplies Div. No. 2

Mr. E. P. Loveridge Purchasing Agent General Supplies Div. No. 3

Mr. B. T. Reynolds Assistant Buyer - General Supplies Div. No. 3

Section "GW" Mr. R. A. Rich Assistant Buyer -

General Supplies Div. No. 2

Mines & Technical Surveys Mr. K. M. Pack Director of Administra- tion

Mr. R. J. 011ett Chief Purchasing Agent Mr. H. T. Martin Chief, Central Equip-

ment Stores Mr. S. Halpern Administrator

Central Equipment Stores

National Health & Welfare Mr. J. A. MacDonald Assistant to Deputy Minister

Dr. K. C. Charron Director, Health Services

Dr. A. C. Hardman Chief , , Emergency Health Services Div. ,...

- 184 -


National Health & Welfare (Cont'd.)

Northern Affairs & National Resources

Mr. J. E. Matthews Health Supplies fficer

Mr. J. K. Wilson hief, , Purchasing and Supplies Div.

Mr. G. H. Davidson hief, , Purchasing Division

Public Works

Veterans Affairs

The Crown Assets Disposal Corporation

Mr. H. G. Hunt

Mr. D. Kronick

Mr. J. E. Walsh

Mr. D. L. Hillock Mr. K. A. Hall

Mr. L. Richard

Chief , , Purchasing & Stores Branch Purchasing Agent

riirdanfnr - rinnne Director - Finance,

President & General Manager

Purchasing & Stores Purchasing Agent Supervisor - Motor Transport

The Post Office

The National Capital Com-mission

The Royal Canadian Mounted Police

Mr. C. Daze" Spec. Assistant to Deputy Minister

Mr. K. G. Remus 1Superintendent - 'Purchasing & Stores Div.

Mr. E. Thrift General Manager Mr. H. A. Luscombe Assistant Landscape

Architect

Mr. J. H. T. Poudret4 Director - C/Supt. Services & Supply

Position [Individual Department

SCHEDULE C

- 185 -

SC ILEDULE C

Provincial Government Departments and Agencies

Department Individual Position

Fteform Institutions-Province Mr. A. Graham Deputy Minister of Ontario-Toronto, Ontario Mr. J. K. Lambie Executive Administration

Officer Mr. V. Ott Director, Industries

Thames Valley Conservation Mr. L. N. Johnson Secretary-Treasurer Authority-R. R. #6, London, Ontario

Municipal Governments Including School Boards

The Etobicoke Board of Edu- Mr. M. Hallford Purchasing Agent cation ,The Township of Etobicoke, Etobicoke, Ontario.

The London Separate School Rt. Rev. J. A. Feeney Secretary Board, 401 Queens Avenue, London, Ontario.

The North York Board of Mr. H. Baird Supervisor of Education, Purchasing The Township of North York Willowdale, Ontario.

The Municipality of the City Mr. D. G. Judd Director - Purchasing of Toronto, City Hall, Toronto, Ontario.

The Municipality of the City Mr. R. B. Beckett The Mayor of Brantford, City Hall, Brantford, Ontario.

The Metropolitan Toronto Mr. J. Janzen eputy Parks Parks Department, Commissioner 1681 Bayview Ave., Toronto, Ontario.

- 186 -

SCHEDULE C

Churches, Hospitals, Universities and Other Non-Profit Organizations _

The United Church of Canada, Mr. H. L. Arnup Assistant to the 85 St. Clair Ave. East, Treasurer Toronto, Ontario.

The Brantford General Hos- Mr. H. Schuler Purchasing Agent pital, Brantford, Ontario

The Canadian Universities Dr. E. F. Sheffield Research Officer Foundation, Fuller Bldg. , 75 Albert Street, Ottawa, Ontario.

Carleton University, Mr. A. B. Larose Accountant Colonel By Drive, Mr. F. J. Turner Bursar Ottawa, Ontario.

The Boy Scounts Assoc- Mr. S. Cutler Executive iation of Canada, 1345 Commissioner - Base Line Rd., Ottawa, Procurement Ontario.

- 187 -

. The Canadian Penitentiary Service

Industrial Category

Estimated Annual Market for Penitentiary Production

Aprons, waterproof $ 210 Beds, metal, gatch type, hospital 310 Belts, leather, discharge 1,550 Boots, rubber, various types 13,770 Brushes, paint, varnish, whitewash 3,380 Cabinets, fire hose, metal 9,050 Cases, milk 1,550 Caps, air force blue 3,960 Caps, khaki 1,700 Caps, olive drab 380 Handkerchiefs, various types 2,130 Hats, fur felt, discharge 1,900 Hats, uniform, fur, muskrat 7,850 Ladders, step type 750 Pans, sheet baking, various 2,100 Posts, fence, wood 450 Shelving, metal 3,600 Shirts, white 600 Shoes, Ballplayer 420 Shoes, Canvas, running, etc. 1,500 Shovels, various 1,150 Ties, discharge 730 Ties, maroon 100 Ties, uniform, khaki 2,700 Ties, uniform, navy blue 650 Trays, aluminum, various sizes 2,220 Trays, food 625 Underwear, summer, shirts 1,400 Underwear, summer "T" shirts 12,300 Underwear, winter, drawers 8,800 Underwear, winter, shirts 16,500 Wipers 1,700

$106,035

SCHEDULE D

Supporting Data

- 188 -

Industrial Category

Estimated Annual Market for penitentiary Production

SCHEDULE D

Supporting Data

II. The Department of Citizenship and Immigration

Blankets, Wool $ 4,900 Blinds, Venetian 1,100 Broom and Brush Products 200 Brushes, Paint and Varnish 1,100 Clothing, Men's Sweater Coats 900 Furniture - Banquet Tables 5,600

- Chairs, Nesting 11,400 - Chairs, Desks, Moveable, Wood 20,850 - Seating Desks 1,200 - Study Desks and Chairs 3,000 - Typewriter Stands 600 - Teachers' Desks 1,500 - Church Pews 3,100 - Chemistry Desks 800 - Household 13,900 - Household, Upholstered 27,950 - Hospital Beds 700

Lockers, Various Sizes 12,400 Nets, Various Sizes, Mostly Nylon 24,200 Playground Equipment, Slides, Swings, Teeters,

Baseball Back Stops 14,000 Sports Equipment, Hockey Sticks 13 550

$ 162,950

- 189 -

III. The Department of Defence Production

Industrial Category


Broom and Brush Products 360,000 Brushes, Paint and Varnish 20,000 Canvas Products - Tents (marquees) tent bags and

floors, tarpaulins, vehicle covers, curtain assemblies, side curtains, etc. 200,000

Clothing, various, including shirts, pants, underwear, socks, gloves, mitts, etc. 750,000

Furniture, Wood and Metal, including household furnishings, living, dining, kitchen and bedroom furniture, upholstered furniture, desks, telephone stands, bookcases, cabinets, costumers, etc. 1,100,000

Lockers, metal filing cabinets, transfer cases, storage cabinets 325,000

Material Handling Equipment, including warehouse trucks platform, stores selecting, canvas bag or barrel trucks, etc. 15,000

Metal boxes for D. N. D. workshops, tool boxes, shipping boxes and bin boxes 60,000

Playground and gymnasium equipment, including parallel bars, slides, climbers, benches, mats, etc. 25,000

Shelving, open steel, storage shelving for D. N. D. workshops500,000 Steel work benches Shoes and Boots, various Traffic Control Signs Waste Disposal Equipment, including waste baskets,

garbage cans, pails, etc.

20,000 105,000

2,000

22,000 $ 3,504,000

SCHEDULE D

Supporting Data

- 190 -

Industrial Category


SC HEDULE D

Supporting Data

N. The Department of Mines and Technical Surveys

Broom and Brush Products $ 100 Canvas Products - Dunnage Bags 1,000

- Tents, Various 18,000 - Tarpaulins 11,200 - Burlap Bags 75 - Canvas Cots 300 - Canvas Pails 40

Fibre Cases 14,000 Furniture, including plywood benches, banquet 2,400

chairs, bridge chairs, metal stools, aluminum tables

Life Jackets 1,000 Metal Products - Aluminum Boxes 1,200

- Metal signals for triangulation 10,800 - Metal Pails 350

Sleeping Robes 14,000 Steel Shelving 15,000 Trailers - combination kitchen-diner and for sleeping 18,000

accommodation Wooden Outboard Motor Boxes 1,400 Wooden Rack Cabinets 20,000 Wooden Tent Pegs 150

$129,015

- 191 -

V. The Department of National Health and Welfare

Industrial Category


1,500 300

- Laboratory Coats 750 - Sheets 650 - Laboratory Clothing 1,350 - Operating Gowns, Female 550 - Nurses Gowns 1,550 - Smocks, maid and ward aid 1,650 - Sheets, Colonial 2,250 - Bed Spreads 1,100 - Gowns, Dressing 3,000 - Uniforms, Naval Pattern 1,250 - Uniforms, Nurses 1,700 - Greatcoats, Nurses 550 - Tables, banquet, fold.tng 1,550 - Wardrobes, Wooden 1,400 -Chair, Hostess 1,350 - Chair, Arm, Hostess 650 -Cabinets, Storage, Wood 1,100

with sliding frame glass doors

- Furniture , upholstered 6,400 - Furniture, household 14,250 - Chairs, stacking, metal 1,000 - Tables, bedside, metal 2,000 - Beds, hospital, youths 1,200 - Beds, hospital, crib 3,250 - Beds, hospital, gatch type 4,500 - C abinets , bedside 2,000 - Tables, Overbed 1,500 - C hairs , various , metal 1,150

Broom and Brush Products Brushes, Paint and Varnish Clothing and Textile Products

Furniture, Wood and Metal

(Cont'd.)

SCHEDULE D

Supporting Data

- 192 -

SCHEDULE D

Supporting Data

V. The Department of National Health and Welfare

Estimated Annual Market for Penitentiary

Industrial Category Production t

Metal Products - Covers, aluminum 1 , 550 - Cases, unit, feeding mobile 22,850 - Cases, milk 2,750 - Bowls, mixing, aluminum 5,100 - Folding Metal Beds 610,000 - Pitchers, Aluminum 1,800 - Metal Tanks, various 600 - Shelving (various) 5,600 - Signs, metal 500

Miscellaneous Hospital Supplies - Blankets 600 - Trucks, hospital linen 500 - Wheel Chairs 500

Miscellaneous Wooden Products - Pallets, Wood 6,300 - Boxes, Wood 12,500

- Supports, test tube, wood2, 550 - Bags, animal, various 2,050 - Cases, hospital carrying1,000

Trailers, mobile, dental 16,400 Waste disposal equipment - cases, containers, receptacles, 1,200

baskets, pails, etc. $755,800

- 193 -

VI. The Department of Northern Affairs and National Resources

Estimated Annual Market for Penitentiary Production Industrial Category

Broom and Brush Products $ 2,500 Canvas Products - Tents 8,500

- Tarpaulins 5, 500 - Dunnage Bags 1,150

Clothing and Textile Products - Shirts, khaki 900 - Trousers 4,000 - Caps, fur and naval 2,000 - Shirts, summer 500 - Jackets 600 - Coveralls 1,400 - Bathing Trunks 2,500 - Robes, Sleeping 9,450

Furniture, Wood and Metal - Cabinets, metal 950 - Lounge Chairs and Sitters 500 - Chairs, Stacking 1,800 - Chairs, various 13,600 - Study Desks and Seats 3,550 - Furni ture , Teachers 4,200 - Chair-desk combination 1 , 350 - Furniture, household 82,000 - Kitchen Sets 3,750 - Beds, youths 500 - Tables, Folding 550 - Office Furniture 1 , 750

Metal Products - Shelving and Bins 32,150 - Garbage Cans 5,050 - Bronze Tablets 2,200 - Bronze Plaques 2,800 - Barbecue Grills 4,350

(Cont'd.)

SCHEDULE D

Supporting Data

- 194 -

Industrial Category


SCHEDULE D

Supporting Data

VI. The Department of Northern Affairs and National Resources

Metal Products - Pedestal Camp Stoves,Cast Iron $ 3,000 (Cont'd.) - Fireplace Sections 850

- Signs, aluminum cast 500 - Sigms, road, metal 1,250 - Signs, Post 3,050 - Sign faces 1,300 - Guide Rail Reflectors 1,000 - Cabinets, Zoological, Storage 3,300 - Shelving 6,500 - Wheelbarrows 2,650 - Steel Bins 800 - Lockers, cold storage 3,500 - Veater Barrels 1 , 400 - Metal Tags 650 - Vehicle License Plates, N. W. T. 2,300 - Sleighs 3,550 - Trailers, Boat 750

Miscellaneous Wooden Products - Pallets 1, 500 - Boxes, Misc. 3,150

Playground and Recreational Equipment - Swings 550 - Ocean Waves 800 - Slides 600

* Prefab Buildings - One room Eskimo House - Housing Plan 370 270,000

- Multiple Dwellings 70,000

TOTAL $ 583,000

See Page 196)

- 195 -

* The requirements of the Department of Northern Affairs and National Resources for pre-fabricated housing is as follows:

Average Annual Requirement

Three Bedroom House 8 Two Bedroom House 6 One Bedroom House 2 Three Classroom Schools 2 Two Classroom Schools Unknown One Classroom School Unknown Eight Pupil Hostels 12 Transient Building and Office 3 One Room Eskimo House 125 x

x This product involves the least complex specifications

- 196 -

Industrial Category


SCHEDULE D

Supporting Data

VII. Department of Public Works

Broom and Brush Products $ 5, 500 Clothing and Textile Products - Elevator Opera-

tor Shirts 2,300 - Elevator Opera-

tor Trousers 5,500 Flags, various 40,000 Furniture, Wood - Blackboards, poster boards , display 12,000

boards, chalk boards, bulletin boards, directory boards

- Bookcases 64,200 - Chairs, arm and straight back, walnut

and oak including upholstering as 230,000 required

- Desks, comptometer, secretarial, 400,000 typewriter, oak, walnut, red oak

Metal Products - Waste receptacles, garbage cans, 87,000 cans, utility carts, pails

- Coat of Arms, aluminum, and bronze 16,000 - Dust Pans 1,500 - Open Shelf Filing 40,000 - Steel Shelving, including combinations

of wood and metal 300,000 - Lock Boxes and Number Plates 245,000 - Clothes lockers, with and without

locks 85,000 - Stools, step, office, drafting, general

purpose 32,000 - Filing Cabinets, metal card index,

posting cabinet, stationery cabinet, bases, special cabinets 400,000

Cash and stamp drawers, wooden drawers with metal frames 5,300

(Cont'd.)

- 197 -

Indu striai Category


$2,244,600 TOTAL

SCHEDULE D

Supporting Data

VII. Department of Public Works

Metal Products - Mail receivers, stamped or die $ (Cont'd.) cast 20,000

- Mail bag racks 20,000 - Signs and sign materials 28,200

Mops 5,000 Ftepairs - Awning repairs 6, 500

- Furniture 30,000 - Furniture (other than that presently carried

out by the Canadian Penitentiary Service) - Chairs 4,200 - Desks and Tables 9,800 - Cabinets 21,000 - Filing Cabinets 49,000 - Transfer Cases 24, 600 - Upholstery 3,000

Trailers, camp, consisting of kitchen storage, diner, etc. 52,000

- 198 -

Industrial Category


SCHEDULE D

Supporting Data

VIII. The Department of Veterans Affairs

only - Flannelette Pyjamas - Dressing Gowns - Corduroy Items - Jackets, Trousers

and nightgowns - Other, various

Broom and Brush Products Brushes, Paint and Varnish Canvas Products, laundry bags Clothing and Textile Products

Furniture, Metal Metal Products - Lockers

- Steel shelving - Waste Disposal Equipment

Shoes and Boots - Slippers, soft sole - Shoes, stitchdowns

Wood Products - Wooden Cases, Pallets

14,000 900

3,500 100,000 10,000 40,000 50,000

50,000 20,000 1,500 1,800 8,200

11,000 7,000 8,500

TOTAL $ 326,400

- 199 -

Industrial Category


TOTAL $2,082,900

SCHEDULE D

Supporting Data

IX. The Post Office

Broom and Brush Products 2,200 Canvas Products - Letter bags, newspaper bags, 940,000

international bags, air register bags, satchels, letter pouches, catch bags, air mail bags

Clothing and Textile Products - Shirts, ties, coats, overalls, sack- 440,000

coats, trousers, peajackets, caps Leather Products - straps, etc. 3,000 Material Handling Equipment - platform trucks and binnies 66,000 Metal Products - letter boxes, parcel receptacles, 352,000

group boxes, mail storage, rural mail boxes, letter hods, steel shelving, slip labels

Signs, Metal and Wood - identification plates for rural 14,700 mail carriers, post office name signs

Wood Products, generally - cases and tables, desks, trays, etc. 265,000

- 200 -

Industrial Category


SC HEDULE D

Supporting Data

X. The Royal Canadian Mounted Police

Broom and Brush Products 100 C anvas Products , mattress covers , have rsacks , 1,500

tarpaulins, tents Clothing and Textile Products - sheets and pillowslips 55,000

- shirts , smocks , under- . wear , cove ralls 10,000

Furniture, Wood and Metal - living room , dining room, 6,500 bedroom , kitchen , school

Shoes and Boots - Ankle, Strathcona, Congress 40,000 Signs, Metal 3,200 Wood, general - Wardrobes 1,700

TOTAL $118,000

- 201 -

SCHEDULE E

Small C anvas Shop

Equipment List

15 Sewing Machines

8 Foot Presses (grommet setters)

1 Punch Press (grommets)

1 Foot Press (punch for rope)

1 Cloth Cutter

1 Grinder

- 202 -

SCHEDULE E

Canvas Mailbag Shop

Equipment List

25 Sewing Machines

8 Foot Presses (grommet setters)

1 Punch Press (grommets)

1 Foot Press (punch for rope)

1 C loth Cutter

1 Grinder

- 203 -

SCHEDULE E

Inmate Clothing Shop

Equipment List (40 Operators)

25 Sewing Machines

1 Serger

2 Buttonhole Machines

1 Pocket Making Machine

1 Shirt Facing Machine

1 Steam Press

1 Cloth Cutter

- 204 -

SCHEDULE E

Inmate Clothing Shop


40 Sewing Machines

2 Sergers

2, Buttonhole Machines



2 Steam Presses

1 C loth Cutter

- 205 -

SCHEDULE E

Wood Products Shop

Equipment List

1 Turning Lathe

1 Pedestal Drill

1 Radial Saw

1 Circular Saw

1 Band Saw

1 Planer

1 Jointer

1 Belt Sander

1 Disc Sander

1 Router

1 Glue Press

1 Belt Sander - Portable

1 Bench Grinder

1 Air Compressor

1 Exhaust Fan

1 Spray Booth

1 Pressure Feed Tank

- 206 -

SCHEDULE E

Upholstery Shop

Equipment List

2 Single Stitchers

1 Cushion Machine

1 Button Machine

2 Sewing Machines

- 207 -

SCHEDULE E

Metal Products Shop - General

Equipment List

1 Brake 1 Shear 1 Circle Shear 2 Drill Presses 1 Punching Machine 1 Lockformer 1 Bar Folder 1 Roll Former 1 Bench Grinder 1 Tube Bender 1 Abrasive Cut-off 1 Power Hack Saw 1 Pipe Threader 1 Rivetter 1 Portable Sander-grinder 1 Wire Former 1 Wire Cutter 1 Crimper and Beader 1 Spot Welder 1 Arc Welder 1 Sanding Machine 1 Portable Drill 1 Compressor 1 Water Wash Spray Booth 1 Spray Gun ez Pressure Tank 1 Drying Oven

- 208 -

SCHEDULE E

Furniture Repair Shop

Equipment List

1 Pedestal Drill

1 Radial Saw

1 Circular Saw

1 Band Saw

1 Planer

1 Jointer

1 Belt Sander

1 Disc Sander

1 Router

1 Glue Press

1 Bench Grinder

1 Orbital Sander

1 Portable Drill

1 Oscillating Sander

1 Air Compressor

1 Paint Spray Outfit including Pressure Tank

1 Exhaust Fan

- 209 -

SCHEDULE E

Officer Clothing Shop


15 Sewing Machines

1 Serger

1 Buttonhole Machine



1 Steam Press

1 C loth Cutter

- 210 -

SCHEDULE E

Brush Products Shop

Equipment List

3 Winders

1 Clipper

2 C hucking Machines

2 Hurl Stemmers

1 Drill Press

1 Pedestal Belt Sander

1 Knock Punch Brush Machine

3 Hand Sewing Vices

1 Trimmer

2 Soft Hair Bench Comb. Std.

2 Bristle Bench Comb. Std.

1 Horse Hair Cutter

1 Twister Turn Out Machine

1 Bench Grinder

1 Finishing Belt Sander

1 Brush Making Machine

- 211 -

SC HEDULE E

Cannery (Acid Products)

Equipment List

2 Pulpers

1 Fruit Press

3 Apple Peelers

2 C hippers

1 Brining Tank

3 Kettles (30-40 Gallons)

1 Piston Filler

1 Can Closing Machine

1 Cooling Tank

4 Retort C rates

1 Hoist

1 Scalding Tank

1 Exhauster

1 Rotary Washer

1 Peeling and Trimming Table

- 212 -

SCHEDULE E

Cannery Non-Acid Products

Equipment List

1 Blending Mixer

1 Snipper

1 Cutter

1 Blancher

1 Piston Filler

1 Brine Making and Filling System

1 Exhauster

1 Can Closing Machine

4 Retort Crates

1 Hoist

1 Cooling Tank

1 Gutting, Cleaning and Scaling Table (Coast)

1 Corn Cutter

1 Corn Washer

1 Corn Husker

1 Corn Silker

- 213 -

SCHEDULE E

Shoe Shop

Equipment List

1 Sole Cutting Beam

2 Stitching Machines

1 Finishing Machine

2 Sole Stitchers

1 Skiving Machine

1 Bench Grinder

1 Cementing Press and Jack

1 Eyeletting Machine

5 Sewing Machines

1 Welter

1 Inner Lip Turner

1 Bed Laster - toe and heel

1 Folded Edge Cementing Machine

1 Heel Breasting Machine

1 Insole Grounder

1 Sole Leather Splitter

1 Channeling Insole Machine

- 214 -

Joyceville

7:00

Collins Bay

6:45

-- 7:20 6:40

-- 6:45 7:00-7:25

8:00-8:30 8:00 8:00

11:10-11:30 11:25 11:45

11:30 12:00-12:25 Showers & Clothes Change 12:00

1:00-1:30 1:10 12:50

4:05-4:25 4:30 4:45

5:00 5:00-5:25

SCHEDULE F

SUMMARY OF REPORTED DAILY PROGRAM SCHEDULE AS OF AUG. 2, 1962 Federal Gatineau

Daily Springhill Dorchester St. Vincent LeC lerc Valleyfield Training Correctional Kingston Routine DePaul Centre Camp

1. Arise 6:50 7:00 6:55 7:15 7:00 6:30 6:30 8:45

Prison Saskatchewan Saskatchewan British Columbia Collins Bay for Beaver Manitoba Pr. Albert Penit. New Farm Women Creek (Stony Mt.) Farm Camp Pr Albert Westminster Camp

7:00 6:30 7:00 6:00 __ 6:15 6:30

2. Roll Call 7:00 7:10 Performed 7:15 7:25 8:00 6:55 8:00 7:00 7:45 6:45 7:00 7:50 6:10 prior to 6:55 . while inmates are asleep

3. Breakfast 7:20 7:15 7:10-8:00 7:30 7:30 7:00 7:00 7:00 7:05 7:00 7:45-8:00 7:00-7:30 7:15-7:45 6:30

Prison opens 7:45

4. Start Work-AM. 8:00 8:15 8:30 8:00 8:00 8:10 8:00 8:00-8:30 8:00 8:00 8:30 8:00 8:10 8:00

Shop Roll Call 8:35

5. Stop Work-A.M. 11:45 11:20-11:30 11:00-11:40 12:00 11:45 11:40 12:00 11:15-12:00 11:30 11:30 11:25-11:5511:50 11:35 11:20 1st Last

ell shop shop w goes goes

6. Noon Meal 12:00 11:50-12:50 11:00-11:50 12:00 12:00 11:50 12:05 12:00 11:30 12:00 11:45-12:30 12:00 11:40-1:00 12:00-12:45 to to

— .

1:00 1:00 Inmates go directly to Noon Count cells 12:15

7. Start Work-P.M. 1:00 1:00 1:15-1:30 1:00 1:00 1:10 1:00 1:00-1:30 12:50 leo 1:00 1:00 1:10 1:00 Shop Roll Call 1:35

8. Stop Work-P.M. 4:45 4:20-4:30 4:00-4:40 4:30 4:45 4:40 seo 3:45-4:30 4:20 4:30 4:20 4:45 4:90 4:00

9. Evening Meal 5:00 4:50 4:00-4:50 4:45 5:00 4:45 5:05 5:00 4:20 500 4:30-5:00 bep 4:45-5:00 4:15 (2 sittings)

12 sittings)

TOTAL WORKING 11115.7-1/2 hrs. 6-1/2 hrs. 5-3 14 hrs. 7-1/2 hrs.7-1/2 hrs. 7 hrs. 8 hrs. 6 hrs. 7 hrs. 7 hri. 6-1/4 hrs. 7-1/2 hrs. 6-3/4 hrs. 6-1/3 hrs. 6-1/2 hrs. 8-3/4 hrs. 7 -3/4 hrs.

BIBIJOGRAPHY

Accounting Systems in Modern Business - Eldred A. Johnson - 1959

A Current Look at Prison Labor in the United States - T. Wade Markley - 1957

Archambault Royal Commission Report - 1938

Canada Year Book - 1961

Cost Account ants Handbook - Theodore Lang - 1945

Cost and Production Handbook - L. P. Alford - 1940

Criminology - Caldwell

Dominion Bureau of Statistics - Annual Reports

32-218 - The Fruit and Vegetables Preparations Industry

33-203 - Shoe Factories and Boot and Shoe Findings Manufacturing

34-216 - The Men's Factory Clothing Industry

34-217 - The Women's and Children's Factory Clothing Industry

35-202 - The Furniture Industry

41-213 - The Sheet Metal Products Industry

47-205 - The Miscellaneous Industries

72-003 - Man-Hours and Hourly Earnings

Industrial Engineering Handbook - H. B. Maynard - 1956

Manual of Correctional Standards - American Correctional Association 1959

- 216 -

Meritorious Good Time and Compensatiob - U. S. Bureau of Prisons - 1949

New Horizons in Criminology - Barnes and Teeters - 1961

Organization and Operation Research - Study No. 35 - Richard D. Crisp, 1958 - American Management Association Inc.

Penitentiary Service Regulations - PC1962-302-March 1962

Practical Financial Statement Analysis - Roy A. Foulke - 1950

Prison Industries System of Sweden to 1956 - Working Conditions in the Swedish Penal Institutions

Problems in Marketing - M. P. McNair and H. L. Hausen

Problems in Merchandise Distribution - M. P. McNair, E. P. Learned, S. F. Steele

Production Handbook - L. P. Alford and V. R. Bangs - 1948

Readings in Marketing - M. P. McNair and H. L. Hausen

Fteality in Advertising - Rosser Reeves - 1961

Report of a Committee Appointed to Enquire into the Principles and Proce-dure followed in the Remission Service of Canada - (Fauteux) 1956

Report of the Correctional Planning Committee of the Department of Justice - 1960

Report of the Special Committee of the Senate on Manpower and Employment (Methot) 1961

Report of the U. N. Congress on the Prevention of Crime and the Treatment of Offenders - J. Carlos Garcia Basalo

State of California - Biennial Report - 1957 - 58

Systems of Remuneration - United Nations Congress - Prison Labor 1955 - IV-7

- 217 -

Training for Supervision in Industry - George H. Fern - 1945

The Integration of Prison Labour with the National Economy - Including the Remuneration of Prisoners - United Nations Second Congress on Pre-vention of Crime and the Treatment of Offenders - 1960

The Point Incentive Program - Texas Department of Corrections

What Every Supervisor Should Know - Lester R. Bittel - 1959

What's New In Prison Industries - Correctional Research - 1955

What We Expect From Our Foreman - Foreman Training Stevenson & Kellogg

Canadian Penitentiary Service

Administration Manual of the Penitentiaries - Wardens Conference - 1960

Annual Report of the Commissioner of Penitentiaries - 1958-1959-1960-1961

A Plan to Develop Industrial Work in Canadian Penitentiaries - 1960

Miscellaneous pertinent files and circulars obtained from the Service's Central Registry.

- 218 -

SOL GEN CANADA LB/B1BLO

WW1 11 0000024169

Date Due

HV Stevenson & Kellogg, Ltd. 8931 A study of industrial .C2 activities in Canadian S8 Penitentiaries. 1962

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