South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-07-27
INSURANCE FOR
STUDEBAKER MEN
Increase in Wages, Shorter
Hours, Begin Friday,
August /.
CONTINUED FROM PAGE oNE1

plans. employees take the risks OF
profits being made. whereas these
plans relieve them from such risks
and can be counted upon as exact
certainties. as long as they are in
operation. While the complete de-
tails cannot be released for publica-
zion until the plans are approved by
the directors at their next meeting
al South Bend on Aug 5. we are
officially informed that II approved
they will be put into effect not later
than Sept 4. or earlier II possible,
the intervening time being neces-
sary for the completion of the or
ganization and operating details of
the Cooperative Department" which
has been established by the corpora
tior 70 administer the plans and
have entire control and MANAGEMENT
q al the matters affecting the well
fare OF it's employees. which will
number 10000 when the new plant
al South Bend is completed and in
operation. Such information as is
available at this time indicates the
details OF the above plans will in
ciude the following terms:
Plan Anniversary Checks
The anniversary check plan is in
tended TO increase the percentage of
continuous service employees and
eliminate as much as possible the
number Of transient employees who
interrupt production, increase costs,
make errors. and are a detriment to
the success of the business OF the
corporation and also TO the inter-
ests Of it's regular employees. Under
Il new employees will receive an an
rivsrsary check on the first ami
versary OF their employment for FIVE
percent OF their previous years
earnings. and similar checks for five
percent on their second, third and
fourth anniversaries, and checks for
10 percent on their fifth anniversary
and each succeeding year thereaft-
e.. Old employees, who have already
been IL the service OF the corpora
fion from one TO four years. will
receive checks for five percent on
each anniversary. while those who
have been with the corporation five
years or more will receive checks
for 10 per cent on each anniversary.
For the past three years the cor
poration has had an anniversary
check plan In effect which has
ployes. and this is one reason why IL
proved very popular with its en-
is continuing and increasing the pay
nlents Under the present plan, en-
plOyes must serve two years before
the receive rewards. the rate of
which Is two per cent for the second
anniversary, three per cent for the
third. four per cent for the fourth.
five per cent FOR the fifth, six per
cent for the sixth, seven per cent for
the seventh, eight per cent for the
eighth. nine per cent for the ninth.
and 10 per cent for the 10th and sue
cceding anniversaries. Thus IT will
be seen that the new rates reduce
the time under which the maximum
rewards accrue from 10 years to five
years. and more than double the
rates"
The New Plan.
The copartnership plan provides
that employees who have been in the
service OF the corporation three
months or more may have stock
purchased for their account at so
per cent or the market price. in
amounts limited. each year. TO 20
per cent OF their annual earnings
ana 10 $500 market value OF stock
purchased. Employees make initial
payments OF 10 per cent, and 40 per
cent additional in four years. in
equal quarterly installments. The
corporation absorbs the remaining
so per cent provided employees keep
up their payments and remain in its
service continuously for four years.,
by crediting employees accounts
IRE rata every three months for four
years.
Stock purchased is charged 70
employees accounts at cost and 4 per
cent interest is charged on unpaid
balances after deducting payments
BY employees and quarterly credits
by the corporation. All cash and
stock dividends are credited 10 en-
p;Oyes. and voting proxies will be
given them in advance OF stock
holders meetings in order that they
NAV vote for the election OF direc-
tors The directors advise that IL
and when 10000 shares Of stock are
purchased by employees under the
plan. thy will recommend TO the
next stockholders meeting the cleo
ton OF a director 10 represent the
employe stockholders. Participa
ton in the plan is voluntary. and
either common or preferred stock
may be purchased.
4 vacation plan is an additional
reward for continuous service. all
factory employees who have been in
the service OF the corporation two
years or more will receive annual
vacations OF one week with full pay.
There are very few II any large cor
porations in America granting vaca-
lions with pay 10 factory employees,
but the corporation believes that
this experiment Will be welcomed
by its employees and prove successful
IN operation.
To Provide Pensions.
As an addition reward for
continuous service. the COrpo-
ration viii liberalize its pres
ent pension plan by moro than
doubling the benefits hereunder so
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