Evening star., 1949-10-03
DIAGNOSING British Industry

One of the most hopeful augurieS Tor
Britain's economic recovery Is the way
British industry at all levels is trying to
find out what is wrong with the picture
and how 1t can be remedied. The superior
efficiency of American industry Is frankly
acknowledged, and q number OF teams"
consisting of both labor and management
in different sections of British industry
have been or are coming here to make
exhaustive surveys. The idea Is that
combination of American "know-how" and
British ant-to-know-how" can achieve
notably constructive results.
The first of these teams" to report its
findings is that of the British steel found
ing industry Those findings, just published
by the Anglo-American Council for Pro-
ductivity, constitute hard-hitting docu-
ment that pulls no punches and should
give quite jolt to British complacency.
To begin with, the report finds that
productivity in American foundries is from
so to 80 per cent greater than In Britain,
despite the fact that, in individual skill.
British foundry workers rate higher than
comparable American workers. The pro-
duction differential is found to be due to
a wide variety of causes, Including psyche
logical factors such as British lack OF
incentives for both management and
labor, unimaginative routinism, restrictive
trade practices, and wasteful production
methods. BY contrast, the American
foundry industry is permeated with
"production consciousness" workers and
management alike recognizing that high
oil
Stating that 1--WE mean to be contro-
versial," the report says that, In Britain,
traditional practice is all too frequently
a euphemism for obstinancy, trade custom
for pig-headedness If any rule, practice,
or policy acts against high productivity,
1t offends against the community as a
whole, at defiance to whom smaller
interest must not selhshly set itself" And
it goes on to assert: Neither the failure
of a company which works at low pro-
ductivity nor loss of his job because an
employe is inefficient is to be regarded as
unfair. The protection of ineft1ciency at
whatever level constitutes danger"
The report admits that displacement OF
labor may be expected as productivity
rises but it asserts: Opposition to in
creasing productivity on that account Is
as misguided and ill-conceived as the
nineteenth-century uprising against the
use of power spinning machines and
weaving looms. There are other forms OF
production to employ those displaced"
The report ends with grim warning OF
what will happen if British industry does
not speedily set its house in order. 1.-THE
alternative to higher production Is starva-
tion When that Is understood, not only
Intellectually but also emotionally, some
thing will be achieved"
Going beyond the special situation in
the foundry industry, the report discusses
the general question Of incentive, which,
under the present system Of high taxation,
is today largely lacking for British workers
and owners alike. It concludes that "some
form Of direct incentive is essential and
the incentive must be properly shared by
manual workers, supervisors, managers,
and technicians, and, In fairness by owners
and investors also. The customers must
gain through reduced prices"
It should be remembered that this report
is the joint and harmonious product of
a team" of investigators including all
categories of the industry, from labor to
management and ownership. That is its
real significance.