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Henry Ford was largely responsible for the popularization of the 40 hour work week and paid his factory employees nearly double of what they would ordinarily ge

Henry Ford was largely responsible for the popularization of the 40 hour work week and paid his factory employees nearly double of what they would ordinarily get. 1926: Henry Ford popularized the 40-hour work week after he discovered through his research that working more yielded only a small increase in productivity that lasted a short period of time. Ford announced he would pay each worker $5 per eight-hour day, which was nearly double what the average auto worker was making that time. Manufacturers and companies soon followed Henry Ford’s lead after seeing how this new policy boosted productivity and fostered loyalty and pride among Ford’s employees. Of course, this is a rarity. Most employee concessions in the US were earned with blood. https://en.wikipedia.org/wiki/Homestead_strike https://en.wikipedia.org/wiki/Homestead_strike https://en.wikipedia.org/wiki/Battle_of_Blair_Mountain https://en.wikipedia.org/wiki/Battle_of_Blair_Mountain https://en.wikipedia.org/wiki/Ludlow_Massacre https://en.wikipedia.org/wiki/Ludlow_Massacre

hadlock 2y ago
I don't think he did it out of the goodness of his heart, the calculus just happened to work out in favor of the worker in this singular case. With large factories you have training costs, retention costs etc. Paying higher than the going rate meant you had higher quality workers because you could select the best ones from a larger pool. This caused manufacturing defects to go down and remanufacturing costs (extremely expensive) to shrink. Paying more for better workers reduced costs. Limiting hours worked per week reduced costs as well as those workers made fewer mistakes reducing remanufacturing/rework costs. Stable employment, good wages and short(ish) work weeks resulted in worker retention going way way up which meant less churn, less training expenses etc. TL;DR Henry Ford realized car manufacturing was a semi-skilled job, not an unskilled job, and hired and paid for it accordingly, quality went up and costs went down. It's not rocket science.
- AnimalMuppet 2y ago
  Not just "in this singular case". I don't think Ford's assembly lines needed uniquely skilled people; most assembly line work would be the same, with the same calculus. And the calculus was not just "the most skilled workers". It was also "diminishing returns".
- Clubber 2y ago
  >I don't think he did it out of the goodness of his heart Not sure why that matters. Enjoy your 40 hour work week 100 years later.
- clown_strike 2y ago
  > I don't think he did it out of the goodness of his heart, the calculus just happened to work out in favor of the worker in this singular case It wasn't a singular case. He was principled enough about it that Dodge sued to compel him to put shareholders' interests ahead of employees and customers-- a suit Ford fought against, and lost.

hadlock 2y ago

I don't think he did it out of the goodness of his heart, the calculus just happened to work out in favor of the worker in this singular case. With large factories you have training costs, retention costs etc. Paying higher than the going rate meant you had higher quality workers because you could select the best ones from a larger pool. This caused manufacturing defects to go down and remanufacturing costs (extremely expensive) to shrink. Paying more for better workers reduced costs. Limiting hours worked per week reduced costs as well as those workers made fewer mistakes reducing remanufacturing/rework costs. Stable employment, good wages and short(ish) work weeks resulted in worker retention going way way up which meant less churn, less training expenses etc. TL;DR Henry Ford realized car manufacturing was a semi-skilled job, not an unskilled job, and hired and paid for it accordingly, quality went up and costs went down. It's not rocket science.

AnimalMuppet 2y ago
Not just "in this singular case". I don't think Ford's assembly lines needed uniquely skilled people; most assembly line work would be the same, with the same calculus. And the calculus was not just "the most skilled workers". It was also "diminishing returns".
Clubber 2y ago
>I don't think he did it out of the goodness of his heart Not sure why that matters. Enjoy your 40 hour work week 100 years later.
clown_strike 2y ago
> I don't think he did it out of the goodness of his heart, the calculus just happened to work out in favor of the worker in this singular case It wasn't a singular case. He was principled enough about it that Dodge sued to compel him to put shareholders' interests ahead of employees and customers-- a suit Ford fought against, and lost.