Evening star., 1943-04-14

| Mr.. Thomas fears that the pace
established for production in war
time will be carried over into post
war years. This is principal
union opposition to incentives now
Asked if he believed a wage in
centive plan including all UAW
requirements and a clause provid-
ing termination at the end of the
war would have the effect of
increasing output, Mr.. Thomas said,
Il think so".
Sees Hoarding as Check.
Mr.. Thomas believes production
can be increased materially by elimi-
nation Of manpower boarding and
acceptance by management of the
cooperation the worker is willing
to give him.
There is no better man to tell
you how to get more production
than the man on the job. Properly
operated labor-management COM
mittees will increase it greatly" he
concluded.
Joseph Hutchins, regional director
of WPB in Detroit, declared that
wide acceptance of wage incentive
plans would solve the regions man.
power problem. He said Detroit now
has about 100000 manufacturing
workers, and that deficit of 10000
was expected when peak employ
ment is reached next fall. He added
that incentives would conserve a
manpower minimum of 10 per cent.
II am as much in favor of incen-
tive plans today" said Mr.. Hutchins,
"as was opposed to them 20 years
ago. The plans were used to abuse
workers in the old days"
WPB, through the labor and man.
agement consultants of its Labor
Production Division, seemed to be
doing as much or more than any
other agency to bring industrial ac-
cord and to increase output in plants.
bad Habits" Continue.
Mr.. Hutchins said, I'VE developed
some bad habits in Detroit early
last year when the automobile was
converted to war. Men were laid
off, others did not have much to do.
That period was bad for morale.
Many of the habits acquired at that
time still are with U.S."
Detroit's thousands of machine
shops are beginning to show dis
tress, the WPB director said. Find
ing place in the war effort for the
large manufacturing capacity rep
rncontoI hIy hn c1, h. "a
major task for WPB in the coming
months. Most of them are making
machine tools, and there already is
an oversupply of tools of some types.
In the Detroit area, there are about
5000 tool shops, not counting those
of big firms. Included are 200
standard shops employing from 100
to 1000 men, and about 1000 alley
places, with from one to Is en-
ployes. The shops have mush-
roomed since the war started.
In Cleveland the Lincoln Electric
Co. boasts productivity that
perhaps is as high as that of the
more widely publicized Jack g.
Heintz. The firm makes electric
welding equipment. It pays high
wages, in fact the company claims
its employees are the best paid in
the world. Average pay of the Lin
coin worker is about $1,000 a year.
Profit Sharing Arrangement.
Lincoln operates on a profit-shar-
ing arrangement. The hourly pay
rate is high and, in addition, each
worker gets at years end a bonus
nearly equal to his annual pay
check. Then. workers own most of
the company's stock, dividends from
which are not included in the $4,000
a year.
Despite paying out so much for
labor, Lincoln's products are priced
so low that competitors find it next
to impossible to keep pace. While
the average pay of employees has
increased from $4,000 to $4,000 a
year since 1929, the price of typi-
cal welding machine has been cut
by two thirds.
James F. Lincoln, company presi-
dent, cited statistics to show that
productivity of the worker in his
plant is three times as great as that
of the employe in many plants US
ing the same principal raw ma
terials. He declared that many
plants can triple output with the
same labor force if the worker will
give to his job "the same energy
used in taking care of his garden" !"
While the Lincoln story decidedly
is unusual, it is used to show the
powerful effect on production of
monetary incentive and good work.
ing conditions. Lincoln has neither
a labor turnover nor an absentee
problem.