The labor journal. [volume] (Everett, Wash.) 1909-1976, 1918-10-18
THE NATIONAL WAR LABOR BOARD
HOW TEIE BOARD IS DOING ITS WORK
Taught Which Would Be Well for Employers and
Employers to Learn

that the employer has entered into
fixed contracts, based in part upon
the rate of wages being paid at the
time of the making of the contracts,
thus relieving the consumer of the
| legitimate addition to the cost of the
product on account of the war and
again thrusting the burden upon the
underpaid worker; or, that the work
er should be called upon (a) to use
up his pre-war savings, (b) to take
his children out of school and place
them in industry, (c) or to receive
aid from charitable and benevolent
sources for the upkeep of himself
and his family while the war is be-
ing prosecuted.
A state of war is recognized by
all as an extraordinary emergency"
and this is true even though it ex-
tends over a very great period of
time. And it is an emergency
which calls, among other and might
Ter changes, for revision and reform
alton of contracts, the readjustment
of prices to the consumer, and
changes of the most fundamental
character in the organization and
operation of industry, even to the
communicating and control of pri-
vate enterprises by the Government
itself, when found necessary and ex-
pedient.
To prevent injustice, the Board,
where substantial increases have
been made, has unhesitatingly recon-
mended increases in the rates of
public utilities, as we'll as price
establishments in existing contracts
with the Government or private in
dividuals or corporations, so that the
ultimate consumer might not shift
the burden, fairly his, to the back
of the worker or his employer.
Moreover, another argument fire.
quently urged by employers, i. e.,
that the amount of increase in wages
is added directly to the expense of
the concern and must result in an
equal diminution of profits, is in
the main, fallacious.
1t is based upon the assumption
that the employer is to pay higher
price for the identical character
and the same amount of service.
That this assumption is erroneous
has been conclusively proven by
many generations of industrial ex-
perience. Workers who are i'll treated
| by their employers and not suffi-
GENTLY compensated to enable them
to maintain high degree of eff
cheney, render one kind of service,
usually poor and hating. Employees
who are adequately paid, hence in
sound physical condition and men
tally alert, render an entirely diff
ferent and improved quality and
amount of service. Experience has
proven that the increase in the
amount of service rendered and its
improved quality compensates, if it
does not entirely offset, the increase
in the mere monetary wage.
Some of the largest of our ma
TONS industries have in the past vol
UNFAIRLY made large increases in
wages, against the protests of bust
ness competitors, associates and even
economists, the prediction being that
the effect would be the financial
prostration of the industry. The
immediate and practical results, how
ever, completely refuted these fore
holdings, for the expense per unit of
product was materially decreased as
result of better service rendered,
and the profit of the employer show
ed corresponding increases.
Contributing to this beneficial re-
suit may be mentioned among other
factors, the immediate decrease in
the turn over" which means the
constant hiring of vast numbers of
workers to take the places of those
who leave the employment, unable
to continuously maintain themselves
and families on an insufficient wage.
1t is conceded by all enlighted
employers of labor that there is not
only large direct cost in training
new recruits in an industry, but that
there is marked elimination of
product due to the induction of new
and unframed workers into manu-
featuring plant. A comparison be-
tween an industry which maintains a
steady and efficient labor force by
providing equitable conditions of en-
ployment and an industry in which
the labor force is constantly shift
ing because of inadequate wages or