Tuesday, February 2, 2016

Why did Henry Ford raise wages to $5/day?

In 1913, Henry Ford doubled wages because he had to:
"Turnover at the Ford plant had soared to 370 percent by 1913. The company had to hire 50,448 men just to maintain the average labor force of 13,623. Company sur­veys at Ford revealed that more than 7,300 workers left in March 1913 alone. Of these, 18 percent were discharged; 11 percent formally quit; and 71 percent were let go because they missed five days in row without excuse and so were deemed to have quit. On each day, it was necessary to make use of 1,300 or 1,400 replacement work­ers without any experience. One observer remarked, 'the Ford Motor Co. had reached the point of owning a great factory without having enough workers to keep it humming.'

But since turnnover among women was small, he didn't raise their wages:
In addition, Ford disqualified all women. According to one source, 'Women did not work on the assembly line, and were not likely to drink and fail to show up for work. They did not jump from job to job. So there was no reason to include them.'
HT:  WJ

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