Weekly Arizona journal-miner., 1906-02-14
INDIVIDUAL PROFIT SYSTEM ON
 THE SANTA rE.

The santa Fe is preparing to adopt what is known as the individual ef- fort system in Albuquerque, and at all of the large shop points of the sys' tenn. The new system is n combina' ton of the bonus method and the piece scale, and it will take some time to put 1t in working order.
 The new system has been used at To. pcka for some time past, and is found to be satisfactory to the company and employees and as q result it is now be- ing introduced at other points on the line.
 A booklet which has been issued to the employees on the subject is entitled "Shop Bettermcnt and the Individual Effort Method of Profit Sharing,' and is introduced as follows:
 "Fairness not favoritIsm.
 Efficiency. not drudgery.
 Individuality, not subserviency.
 "The cmploye wants as high wages as he can get says the pamphlet. "The employer wants his output to be as cheap as that of his competitors, for if it is not he will soon have to shut down his shop.
 "Thc worker cannot be expected to work for one employer for less pay than is paid under similar conditions for the same work by another employer.
 "The wage payer will not pay higher | than business conditions permit. There may be. however, quite n gap be. tween the wages paid by competitors and the higher wages the employer would be willing to pay if it can he proved to him that it is to his advan- tage to do SO. Wages above current rate cannot be agreed on in advance of performance. but should result from individual effort.
 "This system of profit sharing has l nffU fikH'lN 'u' iH'llN l'f'HA system, because it depends on the in dividual effort of both employer and employed. The former does not arbt rarily reduce the wages, for hc has found better way to economizc. and the latter does not arbitrarily make de- mands for increased pay. for hc has already increased his pay far above the rate any employer would grant
 Irrespective of the individual effort gain, they both at the time the wage earner is employed, enter into an agreement ar contract as regards the regular wages. The contract wage may he changed from time to time as con. litions change; hut whether it rises or falls. it has nothing to do with the pro Gt sharing plan of the individual effort system.
 "Thc direct results of shop better. ment and individual effort are:
 'For the employe: To shorten the hours of labor; to enable each man to determine his own earning capacity; to increase earnings; to do away with overtime; to make him clfrcliant: to add to his value as he grows older; to add to his comfort and safety in the shop; to harmonize relations with the employer.
 "For tho employer: To decrease the cost of production; to lessen the delays on each job; to lessen careless wastes and breakages: to increase the output for the same investment of ca. pital; to secure higher class of em. ployes; to harmonize relations with em. ploycs.
 "This individual effort reward me thod of adding to the gains of both employer and employe has been recent ly adopted in the shops of one large railroad company, but t is not vet in use ny any other railroad or private concern. IL is essentially a method of cooperation and profit sharing. How. ever much the employer better condi. tions, he cannot materially reduce cx. penses unless the wage earner cooper. ates; and however hard the wage. carner may work. he cannot ineroose his pay unless the employer provides the right conditions.n