Evening star., 1931-12-13
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ical Of the new spirit among industrial
leaders. He called his staff together
and addressed them somewhat as
follows:
you have heard a great deal about
depression and unemployment. You
have heard Of business and bank fail
ures and Of mergers particularly in the
publishing field. You know plenty Of
people who are out of work and perhaps
have some friend or relative in this un-
fortunate position Naturally this has
worried you. You are wondering
whether you will be discharged and
forced TO look for another job just when
Jobs are so difficult TO find.
Pledges Against Cuts.
"It is easy enough for me to tell you
not to worry. 1t is easy for me to say
that prosperity is just around the cor
ner But that doesn't resssure you as to
your particular status with this organi-
Zation although that is what most
deeply concerns you and your families
So instead Of promises I'm going to give
YOU my personal pledge. l want you 70
know that no man will be dropped from
the pay roll. No one will have his or
her salary cut. No one will be released
from this organization because other
companies are cutting down, or because
business isn't what it was two years
ago. There's Just one thing that will get
you fred from here-it'S the same thing
that would have brought about your dis
missal in the boom days Of 1928. And
that is plain inethciency.
so don't worry about your jobs-sny
Of you. They are safe SO long as you
do your work. And because you can't
do your best work when you are afraid
of being let out, or are worried about
your pay check, l want you to know
that your Jobs are secure. Now, let's all
get busyl"
This employer was even better than
his word. Not only have there been no
depression dismissals". there have ac-
tually been some salary increases. His
business is going steadily ahead, and
his employees, instead of boarding all
they can scrape together, are living and
spending very much as usual, putting
money into circulation. buying things
they otherwise would have denied them-
selves; making. in the last analysis,
more Jobs for others. They have been
relieved of fear for their jobs.
Directors Had Courage.
And here Is a concern in the Middle
West which manufactures domestic oil
burners. The matter of retrenchment
came up for discussion-not because
the company was losing money--in fact,
the sales were showing a generous In
crease. But other companies were cut
ting down, and a e-to-the-bone
economy was the watchword Of the
hour Why shouldn't they do the
same? Perhaps they could trim the
factory pay roll or eliminate some Of
the people in the advertising and other
departments. They would be justified
by similar actions in many other Or
ganizations.
But the Board of Directors had other
ideas, plus the courage to carry them
out. There was no retrenchment; ex-
penditureS were approved, the adver-
tising appropriation was increased and
business was conducted as usual The
specter Of dismissal did not threaten
the employees of this firm. When this
decision was made known to the work
ers confidence spread through all the
ranks, from executives to factory
hands-a confidence no money could
buy. Their money went into circula-
tion in their local communities, thus
creating widening circle of pros
perity. There is a sequel: The COM
pany's sales so far this year are some
40 per cent ahead of 1890.
Not all companies however, are so
fortunate as to be making a profit.
Certainly they will not continue to
operate very long If, when sales shrink,
they still maintain a prosperity pro-
duetion schedule. The executives have
one Of two choices-either reduce the
number Of workers on the pay roll or
cut down the working hours of en-
ployes. The General Electric Co. has
found solution in q plan which as
sures the jobs Of some $4,000 workers.
Plan 10 Divide Work.
President Gerard swope describes 1t
as plan ito divide the work so that
there win be no further layoffs for lack
OF work between November /, 1881, and
April 80, 1882, without compensation:
and 50 that all those on the pay roll
November / will receive during this
period not less than the equivalent of
one-half their weekly earnings for ful!
time, but in no case more than the
average of SIS a week" Where the
actual earnings exceed that average
the employe, Of course, is to receive
what he Earns
Should 1t prove necessary TO do 40
the employees will be assigned to work
outside Of their usual duties and paid
at the rates prevailing for this tyne
Of labor. To assure the success of
this plan the company's unemployment
fund is being added to by contributions
from those who are now working more
than han time. The company matches
this sum with a similar one, thus dou-