The Washington herald., 1920-12-08
ANNUAL WAGE
LOSSBILLIONS
Illness Of Wage Earners and
No Compensation Means
Ine6ciency.
By II. G. MEYER.

Every day, when the whistles blow
for the wheels Of industry to begin
the days work. 1.z00.o wage-earn-
ers in this country fail to report on
account Of sickness. The working
ranks are further depleted by the
absence of those employees who are
disabled from rcDoccupational <ccci-
dents. The annual wage loss fo-
5000, 900 workers In the United
States from sickness alone may be
conservatively estimated at from
81, ,0o0, 900, 900 to $4,000. 100000.
In the case of the employees, the
effects Of this wage loss and inter-
rupted income are reflected in dis
organized family life-debt, depriva-
tons, domestic discord, discourage
ment. On their return to work the
further effects are manifested in
worry. discontent. carelessness. In
efficiency.
| In the case of the employer this
wage loss is translated into inter-
rupted production, increased rate of
internal and external labor turnover.
increased rate of spoilage. poorer
workmanship, increased frequency
and seriousness OF labort disturb
ances and a general breaking down
of the normal conditions of indus
trial relations. which must be at
least approximate IL any plant is to
run on a smooth, safe and profitable
basis.
Wage Loss Costly.
In the case Of society at large, the
effect of this wage loss Is a costly
increase added to the already heavy
burden of paying the bills occasioned
by carelessness. ineffciency. discon-
tent, poverty, destitution and crime
Viewed broadly. the purpose Of
group disability Insurance is to ad-
minister for employers. and with
theit cooperation, a plan which will,
first Of all. materially reduce this
wage loss and its costly conse-
quences by correcting the trouble at
its source and which will as a sec
ondary but most important function.
redistribute the cost Of such part Of
this loss as cannot be prevented, by
providing a cheaper. safer and less
wasteful method of meeting this
cost.
Group disability insurance fur
nishes to employees, without regard
to age or physical condition, a sub
stitute for wages lost during disabil-
ity caused by sickness Of any kind
or by nonoccspational accidents.
To meet the different conditions
existing In the various branches Of
industry. a sufficient number of
plans was devised to meet varying
demands.
Twelve standard Plans.
There are twelve standard plans-
Under the group payroll policy
the insurance Is administered in ac-
cordance with the practices fol-
lowed In workmen's compensation
Insurance: that Is. the premiwm is a
certain amount per 500 of annual
payroll expended and the weekly
indemnity is a certain percentage
Of the average weekly wages Of the
insured employees.
Every employer knows that q
worrying employe Is a poor invest
ment. Group disability insurance
makes him a better investment by
removing one basic cause Of worry
namely, lack Of funds to take the
place of wages during disability
caused by sickness or nonoccupa-
tional accidents. Worry and dis
couragement always exist where
past savings must be drawn upon
to meet present necessities. thereby
undermining some form of future
hope. 1T is a known fact. too. that
worry prolongs disability and re-
tards recovery.
Worried Employe Inefficient.
On returning to work after a
period Of disability, the worried en-
ploye Is likely to be careless and
inefficient. Hardships. caused by
interrupted income, too, often pro-
mote domestic discord. with the rc-
suit that the returned employe loses
interest In his work and becomes
surly and morose. The employer
now begins to pay the cost in the
form of impaired quality in the
manufactured product, spoilage. de-
creased production.
Because of worry, premature re-
turn to work without benefit of
proper medical advice and treat
ment, a general feeling against the
brook over troubles at home. or
other conditions following his disa-
bility and interrupted income. the
returned employe Is in a much high
er degree likely to meet with occu-
pationsl accidents and again the
employer pays-both in the form OF
interrupted production and labor
turnover.
Fully rs per cent Of the average
employers labor turnover Is within
the first three months. II. at the
inception of their employment, new
employees are furnished with q
group disability certificate along
with their contract of employment
and are told that so long as they
remain loyal, efficient employees they