The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-01-14

CUTS WAGES
q PER Cent
Bonus Used to Choke
Strike Resistance
BY WILLIAM slMoNs.

mas PISSSHt u WaSS WI 'SH ~"
to thirty and forty per cent, aVerag-
ina between 20 and 26 per cent. This
present came as surprise after the
regular four weeks lay off for the De-
cember inventory. Except for small
number of laborers aalready getting
only $22.5o a week of so hours, prac-
ticalIy all Of the tenathousand work
ers received the wage out.
The extept of the cut is proved by
figures obtained for the various de-
partments, among others, Dept 24O,
wood work; 27O, body framing; 224,
windshields; and 334, punch presses.
In Dept. 24O, for instance. where most
IF the work consisted of piece work
at the rate of 21a cents, the price was.
cut to cents, a cut Of 20 per cent. In
one department wi5sre doors are
made, the price per hundred was re-
duced from $3.50 to $500.
Ground Laid for Cut.
The Studebaker Co. laid it's plans
carefully. Previously, before the lay
off, the workers were told to antici-
pate wage cut. But this time it
came without warning. AS each work
er returned on January 4, he was in
formed about the new price list, and
told to take it or leave it.
In the meantime, ads appeared in
the capitalist press of Chicago, Kan
sas City, and other centers, so as to
ensure a labor reserve. OF the more
than one thousand workers who re-
sponded, some were hired, and the
others were duly catalogued, so as
to be available in case of protest
against the cut. s
Consistent Drive.
This cut is only the beginning of
definite campaign against the work
ers, at time when the company is in
prosperous period. Dividends have
been paid regularly, and during the
last quarter, the biggest dividend for
some time.
The cut comes after the company
has tried to weaken the workers. re-
sistence thru compulsory share buy
ing, and thru the establishment of a
bonus system. The share proposition
hasn't worked QUIZ 81 we'll Only a
comparatively small number of the
employees have them, and most of
them were compelled to buy shares
during 191S-192O. Several workers
were thrown out of their jobs because
of their refusal to become partners"
in the business. Moreover, the work
ers do not hold on to their shares as a
rule, disposing of them when it is pro-
fitable for them to do so. The shares
do not link the workers to the COM
pany so closely as was hoped for by
the bosses.
But the Bonus, 30.
The bonus, however, does act as a
drawback to effective resistance to a
wage cut drive. 1t amounts to S per
cent Of the annual wage of each work.
er, for each of the first five years;
and is increased to 10 per cent after
that period. However, to be eligible
for the bonus, one must work a full
year. The turnover of labor, plus
the policy of firing "undesirables,"
limits bonus receivers to a bare ma.
jority of the workers employed.
The bonus acts as a toy which the
company bangles before the workers
eyes, as a reward for good behavior;
at the same time that the wage is
cut to smithereens. The hypnotic ma.
ture Of the bonus is revealed particu,
larly at this time, when the wage cut
is being crammed down the workers
Threats. But many workers are still
under this influence so much so, that
when the cut came, some workers on
being approached about some form OF
resistance, said: Nothing doing. My
bonus comes next month"
More Rough Stuff.
While wages are cut, they are charg
ing more for eats in the Studebaker
cafeteria. For example, soup former.
ly cost s cents, now 10 cents; micro.
scopic piece of butter jumped from 2
to cents; potatoesfrom 5 to Z cents;
and the only reason why meat remain.
ed at ten cents was it's reduction in
size.
Before historic January 4, ten min.
utes before closing time were per.
mitted for washing up. This has been
stopped. Formerly. at 10 a. m. and
D. m, the men had an opportunity
to buy candy, soft drinks. and milk
Workers Resistance.
Altho, as yet, no organized resist
ance has met the wage cut, still there
Is great dissatisfaction among the
men. The real significance OF the
wage cut came home forcIbly TO one
worker who said that upon being in
formed by the boss about the cut
he was tempted to cry out: Long live
the Communist International"
The Studebaker shop nucleus, be
longing to the American section of the
Communist International, is fully
aware OF its duty at this time, and Ii
mobilizing its forces for an aggressive
campaign to bring home to the work