Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-04
Trade Trend and Outlook
Head of General Electric Co. Explains Its Policy in
Endedvoring to Maintain Large Working
Force as Possible at All Times
BY J. v. FITZ GERALD.

special Dispatch TO The Star. =
NEW YORK, January 3.-The secu-
rity of jobs for the worker Is a goal for
which industry should strive as a means
to prevent possible future periods OF
unemployment with the accompanying
business depression, in the opinion Of
Gerard Swope, president of the Gen
eral Electric Co.
The experiences of recent months
have made him and many other indus
trial leaders of broad vision realize more
than ever the value of any program
which will tenc to minimize unemploy-
ment and make wage earners worry less,
from day to day. about whether they can
keep their jobs
1T is realized that the first step in
solving the problem of unemployment in
industry is to use every available means
of keeping men at work." Mr.. Swope
said. THE study of ways and means of
bringing some form of relief to en-
ployes for whom no work can be found
in times of general industrial depres-
sion should go hand in hand with efforts
for greater sterilization.
Feeling of Security Necessary.
The important thing in industry, as
in life, is that all men and women, in
order to devote themselves whole-heart-
edly to the tasks before them, have their
minds at peace. They must have feel
ing CT security in regard to taking care
of the responsibilities that lay before
them. That is. first they must have a
liking for the job on which they are
working, and then a feeling of security
for the future.
This the General Electric Co. is en-
deavoring to meet, but always along the
line OF working with the men. There
fore we have:
First, a life insurance plan to which
the men and the company are contribut-
ing.
Second, plan for assisting employees
to purchase or build homes. The COM
pany never becomes a landlord, but as
siStS those who wish to acquire a home.
Third, rather than have the men in
vest in the common stock of the COM
pany, which is subject to the f1uctu-
atoms of the market, we have provided
q company where the General Electric
Co. takes the stock risk and the en-
ployeS invest in the bonds. These are
redeemable at any time for the amount
the employees have put in, and while
they are in the active service of the
company they receive return of per
cent on their investment. The employees
are also represented on the board of
governors.
Fourth, our pension plan to provide
for old age. Both employees and COM
pany contribute to the fund
Fifth, the unemployment plan,
which also is cooperative, with the I'M
usual feature Of the unemployment
emergency"
Employment Policy.
Sterilization of employment is now
being sought by his company through
the carrying out Of a definite policy,
Mr.. SWope explained. Leaders of in
dustry in other fields will await the
outcome Of the experiment with great
interest. Once it shows signs of work.
ing successfully 1t will probably be
adopted by manufacturers in general,
either partly or In its entirety.
Under this policy the company plans,
when business is increasing, Mr. Swope
said, to increase the working force by
adding employees as slowly as possible
and to increase the number in espe-
cially busy departments by transfers
from other departments"
The plan also contemplates a resort
to overtime in particular departments
and generally before increasing the
working force. It would further post
pone plant renewal and maintenance
work as much as possible, employing
the men on regular production
WAeh Mo1k DcBulS 10 IAN OH the plan
calls for the following policy, Mr.. SWope
pointed out: Cease hiring at once.
Cut out all possible overtime and bring
departments down to normal week.
Transfer people from slack to buster
departments. Stimulate the sales de-
partment to retain cooperation from
customers and get business for future
delivery"
Further, Mr.. Swope explained, the
plan would call for the building of
standard apparatus for stock up to the
number of months shipments based on
the average Of the last three years sales,
adjusted to the expectations of the
next two years.
In this connection the company has
announced that so weeks of work of