It looks like the headline came from the third paragraph which reads:
"Unit labor costs in nonfarm businesses fell 4.3 percent in the first quarter of 2013, the combined effect of a 3.8 percent decrease in hourly compensation and the 0.5 percent increase in productivity. The decline in hourly compensation is the largest in the series, which begins in 1947." - article
Your graph doesn't show a 3.8% quarter to quarter decline so your series is either year to year changes or not what the BLS was referring to.
The decline in hourly compensation is the largest in the series, which begins in 1947. Thanks; so the decline wasn't all US employees but just those for non-farm businesses. That, and we're seeing how the quote was lifted from a BLS' context that was explaining how "over the last four quarters hourly compensation increased 2.0 percent..." I knew the headline was bogus.