Employer Discusses Labor Issue
NORMAN E. MCCULLOCH '17 offers as a basisfor establishing friendly relationships betweenmanagement and labor the following methodsthat have been proved in the plant of theRayon Processing Co. of R. I., Inc., of whichhe is President.
Much has been written lately and more will be said about labor relations and industrial peace. It is hopeful to believe this indicates we are in the final stages of an adjustment period in our history of machine industry. In the early days enterprising men started up their little plants and worked hard and manygoods were made and many people had things they never had before—and this was good. These budding industrialists prospered, many became greedy and were not nice to their associates—the working people who helped them accomplish this good. They soon found they had the power to get a lot and give very little to their employees—and this was bad. A few managements are left who have to get out of this way of thinking.
In the last decade or two the pendulum has swung the other way. After a long uphill fight—which should not have been necessary if more men had been just—employees have established their value and proper relation to the whole free enterprise industrial picture- and this is good. There has been pulling and hauling and striving for advantage and a group of labor leaders has grown up. Amongst them are many who are just, fair, and farsighted. Some have found they have the power to so manipulate their followers as to get a lot more from management than they give in return—and this is also bad. In the process many employees find their liberties and freedom of action sharply curtailed. The general public suffers from the many clashes. The flow of steady production of goods needed for our continued national material welfare is interrupted. The complete waste arising from such behaviour is unintelligent and a blot against our way of living which must make other nations chuckle. Such labor leaders and such managements, as are responsible must get out of this way of thinking and adopt a better behaviour.
What labor-management policy will achieve harmony and peace? Senator Vanderberg has initiated a move to answer this by suggesting a conference between the Department of Labor, the National Association of Manufacturers and the American Federation of Labor, to formulate basic principles. No doubt other groups such as C.I.O. and Chambers of Commerce would be invited. Conditions vary so in different plants that no set formula could work in all. However, all individual practices could spring from the same basic foundation.
In our small plant we have achieved harmony by very simple methods. In view of past history and the early offenses of management, we believe management should take the initiative in convincing labor we have a desire to get along well together. We recognize labor's value to us, we respect their ideas, we recognize the dignity of all men, we promote frequent meetings of management, foremen and employees to discuss production and human relation problems. We start out on the premise that we will live well together, and believe the formula for same laid down in the principles of Christianity has worked better than any other for some nineteen centuries. So we try to treat others as we would like to be treated.
We like the free enterprise system, and believe the profit motive the strongest available force to impel management towards greater production. We believe the wage incentive plan (if carefully installed) offers the same impelling force to produce to employees.
To amplify a little on the Wage Incentive Plan we quote from "A Handbook on Wage Incentive Plans" compiled by the Management Consultant Division, War Production Board, and for sale at ten cents by the Superintendent of Documents, Washington, D. C. "Wage Incentive Plans are methods of paying workers in some degree for their effort, rather than of paying them on the basis of the time they spend at work." And again, which should particularly interest management—"Reports on the operation of new wage incentive plans .... indicate that, on the average, an increase in production per man-hour of about 40 per cent occurred in the first 90 days of operation. Wages increased an average of 15 to 20 per cent and costs decreased 10 to 15 per cent." We tell our employees that they can consider they are in business for themselves. We loan them machines, financing and get them orders. The profit they make is up to them and the effort they exert.
We believe that this utilization of the forces in human nature is a good approach to persuade people to produce. We also believe that great value may be derived by persuading labor leaders to preach the gospel of more production to their followers;
Our further labor policy includes encouragement of our company union; sharing cost of illness and hospital benefits; a pension on retirement plan with death benefits to family of deceased; vacations with pay; Christmas presents; good working conditions; modern recreation and toilet rooms; and such things as company parties and suggestion boxes and smoking privileges.
We believe there is need for a common zeal on the part of leaders of labor and management to make industrial peace policies work. In the past fifty years we have made wonderful strides in the field of .science and machines and material things, culminating with that breath-taking achievement of the collecting and hiving of the potent gamma ray which permits the harnessing of atomic power. In human relations, the progress has been slow. It is reported the atomic bomb cost the nation two billion dollars. With a similar fund made available to philosophers and psychologists, what progress they could make. One can imagine they might find a way to control men's minds and clear out the foggy, selfish, and weasel thoughts. Maybe we need this to be able to live with our new atom!
