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opposed; and that neither can attain the fullest measure of prosperity at the expense of the other, but only in association with the other.
"(2) I believe that the community is an essential party to industry and that it should have adequate representation with the other parties.
"(3) I believe that the purpose of industry is quite as much to advance social well-being as material prosperity; that in the pursuit of that purpose the interest of the community should be carefully considered, the well-being of employees as respects living and working conditions should be fully guarded, management should be adequately recog nized and capital justly compensated, and that failure in any of these particulars means loss to all four parties.
"(4) I believe that every man is entitled to an opportunity to earn a living, to fair wages, to reasonable hours of work, and proper working conditions; to a decent home, to the opportunity to play, to learn, to worship and to love, as well as to toil, and that the responsibility rests as heavily on industry as upon government or society to see that these conditions and opportunities prevail.
"(5) I believe that industry, efficiency and initiative, wherever found, should be encouraged and adequately rewarded, and that indolence, indifference and restriction of production, should be discountenanced.
"(6) I believe that the provision of adequate means for uncovering grievances and promptly adjusting them, is of fundamental importance to the successful conduct of industry.
"(7) I believe that the main measure in bringing about industrial harmony and prosperity is adequate representation of the parties in interest; that existing forms of representation should be carefully studied and availed of, in so far as they may be found to have merit and are adaptable to the peculiar conditions in various industries.
"(8) I believe that the most effective structure of representation is that which is built from the bottom up; which includes all employees, and, starting with the election of representatives and the formation of joint works committees in each industrial plant, proceeds to the formation of joint district councils and annual joint conferences of all the parties in interest in a single industrial corporation, which
can be extended to include all plants in the same industry, all industries in a community, in a nation, and in various nations.
"(9) I believe that the application of right principles never fails to effect right conclusions; that the letter killeth and the spirit maketh alive; that forms are wholly secondary, while attitude and spirit are all-important, and that only as parties in industry are animated by the spirit of fair play, justice to all and brotherhood, will any plans which they may mutually work out succeed.
"(10) I believe that that man renders the greatest social service who so co-operates in the organization of industry as to afford to the largest number of men the greatest opportunity for self-development and the enjoyment of those benefits which their united efforts add to the wealth of civilization." In order to produce the spirit that is embodied in Mr. Rockefeller's creed, the first step is greater knowledge. This applies to both groups. With the tremendous growth of large industry, the employer has grown away from his workers, and in probably the majority of cases is comparatively ignorant of the situation and conditions in his own business. On the other hand the worker, being ignorant of almost everything but his own section and his own part, is liable to misconceive entirely the general situation in his own plant. A number of employers are attempting to remedy the situation by giving educational opportunities to their employees, and by turning over the handling of men to experts.
Beside the troubles due to this increasing lack of contact between the employer and the employee, there is the increasing monotony of the work, due to the almost general introduction of machinery, which has largely killed personal interest and satisfaction in the work. To rebuild this feeling of personal interest, the modern employer has the greatest difficulties to contend with. He is attempt ing to do this through giving a greater amount of responsibility to the worker, a larger liberty in suggestiveness on his part. For example, the Eastman Kodak Company welcomes all suggestions for improvements of every sort from its employees, and it embodies them in an analysis sheet, the results being shown to the employee, to explain why his suggestion is or is not practicable.
The turning over to experts of the handling of the men involves study of the individual worker, in order to secure the right job for the right man. It involves an extremely important question. a question not only of technique, but also of morale.
It is the general conclusion of those who have studied the situation that the main thing is industrial justice in itself, and not the machinery for attaining it. There are no panaceas. Trade unionism is not a panacea. The open shop is not a panacea. The nearest approach to a panacea is increased production. If there is one thing which will bring about that relationship between the two groups that will lead to industrial peace, it is the joint resolution on both sides, even before permanent adjustment of disputes, to push production to the limit consistent with industrial justice. In this connection one of the most important difficulties to be faced and met is that which might be entitled "Hiring and Firing," or "Labor and Turnover." It has been reckoned that in certain industries the labor turnover has been 400 per cent. The New York Department of Labor statistics reckoned that in one year labor turnover lost to 2,556 firms the enormous sum of $363,000,000. One of the most important fields for co-operation and co-ordination in the industrial field would, therefore, be the arrangement of all the year-round work by combining seasonal employment.
Your Committee feels that it is extremely important, in order to counteract the present popular gospel of hate and discontent, to call attention to the undoubted and constant increase in the wellbeing, comfort, sanitary conditions and hours of labor of the working classes; to call attention to the increasing number of employers who regard their employees as human beings like themselves and not as machines. The endless, often senseless, harping on discontent by the agitators, has brought about an unreasonable state of mind among many workers. They are often led to suspect and despise the best efforts of employers to ameliorate conditions.
The splendid and varied forms of welfare work by employers are slandered as selfish acts of self-protection, as acts of charity to be sniffed at. Certain clergymen, wandering out of their normal sphere into fields of danger of which they are ignorant, have fostered these misconceptions. There is some reason in certain cases for criticism of this sort but it is unjust to generalize from these exceptions.
In almost every industry there are slack times when labor is dismissed, and other times of tremendous increase in personnel. It has been suggested that, for example, there could be a combination effected between the concerns running the ice business and the canning business, the peaks of whose operations come at different seasons. This would be a step in the abolition of the
worst features of the competitive idea, which militates against the absolutely essential idea of co-operation.
The confusion of opinion among employers in regard to the American Federation of Labor is natural, but regrettable. There can be no question that the Federation is the most valuable asset in the field of industrial production that we have. There is no assurance of safety in industrial relations unless the employer can make contracts, not with individuals, but with an association of employees that is responsible to the law and has a consequent sense of responsibility as well as a collective conscience.
It is perfectly normal and healthy that there should be conflicts of opinion. It is in the interest of the employer as well as of the public that the constructive and loyal elements that still control the A. F. of L. should be supported. It is important to note that the Federation has repeatedly declared in favor of increased production as the best means for decreasing the cost of living, is against sabotage and declares that the interests of the public must outweigh the selfish demands of any special class.
The most important organization of employers is, of course, the U. S. Chamber of Commerce, whose twelve basic principles, recently issued, have excited a great deal of interest.
The New York Chamber of Commerce Committee on Industrial Problems and Relations is quoted in Cohen, p. 33, as saying:
"It has been proved over and over again in industry, that, irrespective of such conditions as rate of wages paid, as cost of management, or as rates of interest or other return on capital, the condition of hearty co-operation outweighed all the others. It is a by-word of production that the cheapest and best product is compatible with the largest earnings for wage earners, the highest salaries for managers, and the largest profits for capitalists, only providing that all three elements fully co-operate. In this we find the moral factor of manufacturing, which outweighs all the physical factors." Of the various panaceas and catchwords that have become current the most popular is "Industrial Democracy," and we shall give in detail some of the forms in which it is thought to have been embodied in recent experiments. This term and the other catch-word "The New Social Order" have been used by many inexpert persons anxious to be thought advanced thinkers.
Three definitions of Industrial Democracy, which is a most debatable title, loosely used, are given in "Industrial Manage
ment" for July, 1918, p. 68. As defined by Mr. T. W. Wallace, President, Society of Industrial Engineers, it is:
"To me, to have Industrial Democracy is to have some internal plan of government in each industrial plant, whereby the employees have a direct and an authoritative voice in the formulating of such policies as directly affect their physical, moral, social and economic welfare, as well as that of their families. This means length of hours, character of work, physical surroundings under which they work, the moral influences that concern them; the freedom of self-expression through social affairs at the plant and in community; the question of wages or some form of profit and loss sharing. All of these things vitally affect the employee and his family. Therefore, he must have a voice in their control if we are to have Industrial Democracy."
The point of view of organized labor, as represented by the American Federation of Labor, is expressed by the Secretary of the Federation, Frank Morrison, as follows:
"Industrial Democracy is no more susceptible of dogmatic definition than is political democracy. In the latter case, a man is assured according to our theory of government' life, liberty and the pursuit of happiness,' and when they urge industrial democracy workers insist on the same principle. In a political democracy, citizens are assured a voice in the conduct of affairs in the body politic and refuse to accept any goal save life, liberty and happiness.' In the case of an industrial democracy, workers are asking for a voice in industry a voice in adjusting working conditions, in the settlement of wages and in the reduction of hours.
"There is only one 'best' method of securing Industrial Democracy, and that is collective bargaining. Any other solution is democracy only in name, for it denies workers a voice in industry through organization that they themselves control."
In an interesting recent book by John R. Commons, "Industrial Good Will," three theories of the human side of labor are put forth as embodying the principal points of view:
(1) The commodity theory;
(2) The machinery theory; and
(3) The good will theory.