Milford chronicle., 1936-12-18
STABILIZATION
OF EMPLOYMENT

Greater employment stability than
has existed in the past will probably
develop in the near future, partly
because of efforts currently being
meoe by many companies TO give
their workers greater job security
and also as q consequence Of the So
cial Security Act.
This fact IS brought out Ia a stu
dy, Employment: A Right OF an
Opportunity" just published BY the
National Industrial Conference
Board.
Many companies, particularly
large ones, the Boards study points
out, are genuinely interested in MAX
ing possible greater job security for
their employees and are actively
studying the problem of ways and
means Of accomplishing this result.
Attempts to smooth off fluctUa-
tions in employment have been un-
deftaken by many progressive COM
panies in recent years. A few have
reached the point of guaranteeing
employment or annual income to
their regular working force. Others |
have not reached such an advanced |
point but have made definite pro-
gress toward employment stabiliza-
tion. One of the most striking ex-
periments of this character is that
of the automobile industry, in which
an entire industry has united in an
effort to alter purchasing custom
sufficiently to spread production
more evenly over the year and so
permit more continuous employ
ment of the workers in the indus
try.
Pressure Of taxation in cOnnec-
tiOn with the Federal Social Secur-
ity Act will make employment sta
bilizatiOn attractive to all employers
or not they are interested
in tightening the worries of their
employees, the Conference Boards
study continues. If each company is
to be taxed for old age benefits at
first 10 and finally go on the earn
ings of all employees up to $4,000,
1t will clearly be to a cOmpany's in
teTest to keep its working force as
small and compact as possible. If (
The proposal Of organized labor that |
the employer pay the entire cost Of I
.hese benefits should be adopted, and {
It will undoubtedly be strongly urg- {
I'd, then the employers interest in !
keeping his working force small I
will be doubled. {
The effect of taxes for the pay q
nent of unemployment benefits will 4
,e the same, particularly if, through
merit rating provisions in state b
avs, the individual employer is able n
O reduce his own tax by reducing O
in employment within
lis organization. Considerations of 8
economy will dictate the need for a e
force trained in versatility s
o that, whenever possible, employ n
es temporarily superfuous in one n
department. may be absorbed by an O
ther department that is becoming
lore active.
However desirable and advantage a
us the provisions of the Social Sc Il
urity Act may appear to the work h
r who has been the victim of un-
or pehuriOus old age,
robably few workers realize that L
his method of attempting to meet L
he problem, while giving greater
scurity to those who are employed, D.
i'll result in reducing opportunities
ir employment. The essence of en-
lOyment stabilizatiOn is the elimi
alton of easy hiring and easy firing
nd utilization of the regular force
its maximum capacity. This In
cans that every supervisor will be 81
I'D responsible for undue employ
ent fiuctuation in his department, m
I'd any layOff that can be shown to 81
aVoidable, had better judgment 70
ade the employment of the person si,
will stand against HIS in
cord. m,
Company unemployment benefit s1
ans have proved in the past to be sit
e strongest deterrents to hasty st,
quisitions for additional labor. The m,
ture will show redOubled effort to nh
old employment of additional per- wi
ms when it can possibly be avoid of
in order escape the penalty for
ring off employees. VIII