The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1921-05-12
A UNIQUE PLAN.

poration for the first three months of
this year was GIG percent as against
q percentage of 269.9 for the year
1920, according to announcement now
being made b ythe management. No
small credit for this extraordinary
reduction is believed to be due to
the functioning of the company's
unique aid complete cooperative
plans as instituted in all the plants
during the summer of 1919.
The cooperative plans, which en-
body the. payment of anniversary
checks, vacation wages, life insur-
ance and pensions, together with
stock-pnrchasing rights, were for
mulateG for the fundamental and
primary purpose of securing prompt
attendance, loyal application to duty,
and continuous service, and the en-
ployees are SD informed in plain
statements. There is no SAVIOR pa
ternalism or any intention OF giving
something for rothing; the en-
ployees are assured that their prompt
loyal, and continuous service, the
only thing demanded IN exchange for
the right to participate under the
provisions, increases the company's
profits until it can well afford to pay
the benefits.
Concrete evidence of the satisfac-
tory working out of the system is
furnished by the fact that Studebak-
er body painters and trimmers,
working in the Detroit plants, re-
fused to join strike of their union
in that city. They realized that
continuity of service is the one thing
essential to their sharing in the
cooperative benefits and were I'M
willing to sacrifice their status on
the records of the Cooperative De-
partnent.
Under the partnership provi-
sions employees are permitted to buy
stock in the concern to the amount
of $500 annually, ten percent of the
amount being payable in cash at the
time OF purchase and 40 percent pay.
able in equal quarterly payments
over a period of four years. The
remaining so percent is paid by the
company in exchange for continuous
service. Approximately % percent
Of the total number of employees
now OWE stock under these provi-
sions, the majority having purchased
the maximum amount.
What is considered most remark
able in this connection is the fact
that there was little effort on the
part of the company to induce the
employees to take advantage of the
stock-purchasing rights, almost all
of the sales being made at the volun-
tary request Of the purchaser.
Anniversary checks are payable
for a year of continuous service, Ger
tain definitely specified absence pri-
vileges being Incorporated in connec-
ton. On his first anniversary date,
an employee is paid a check equal
in amount to five percent of his earn
ings with the company during the
year. The percentage which de-
termines the amount of the check re-
mains the same for the first four
years of service, but on the fifth
and succeeding years it increases
to ten percent. A close record is
kept of each employee and any failure
on his part to meet the attendance
requirements serves at once to for
felt his right to participate undsr
the plans.
During 1920, 8,O63 employees were
paio anniversary checks with a total
cost to the company of approximate
ly 100000.
Employees who have been with the
company for two continuous years
or more are entitled to weeks va
cation with pay. During the past
year 3,541 employees took advantage
of this provision with a cost to the
company of approximately $4,000.
Those annual earnings are less than
$4,000 and who have reached so
years. of age with minimum of 20
years of continuous service with the
company, are eligible to retire on a
pension equal to 25 percent of their
average annual earnings for the five
years preceding the date of retire
rnent. A minimum pension Of $50
per month is provided, for in this
agreement. About so employees are
now retired Under this provision.
At the death Of. an employee who
has been continuously with the COM
pany for five years or longer, the
life insurance provision specifies that
check for $500 be given to the
family. Numerous checks have
been paid in this manner to date
The companv has spent in excess