The rates of wages at a given place and in given occupations are fixed largely by causes beyond the control of the individual employer or the individual laborer. Even if a reduction in the wage rate were an economic saving, or if an increase were an economic gain, the possibility of adjustment of the wage rate could offer but little hope to the individual. The hope of economic gain lies in increasing the efficiency of the worker. A Greater productivity with a given economic cost is what is to be desired by the employer and employee. 1 Johnson, Money and Currency, ch. II. How may labor costs be reduced? The whole problem of the control of labor, from the viewpoint of the management, is that of the reduction of labor costs. The solution of the problem, obviously, is to be found not in lowering the rates of wages, but in increasing the productivity of labor. We may now consider in brief outline the practical methods by which employers endeavor to increase the productivity of the working force and thereby to reduce the costs of labor. 1. Improvements in machinery and methods of working. 2. Selection and training of employees. 3. Securing the co-operation of employees. 4. Lengthening the average period of employment. 5. Conserving the supply of labor. Improvements in machinery. It is not to be denied That the employer looks upon the workman with a very practical eye. Whatever protestations may be made by the employer with respect to his solicitude for the workman's welfare, the*workman will be retained only so long as he is useful. If a machine is invented which will take the place of the workman and perform his task at a lower cost, the machine is installed immediately. Incidentally, this policy in the long run is of benefit to the working classes as well as to the employing classes. When power looms were introduced in England, the resentment of the spinners expressed itself in riots and destruction of the machinery. When oil pipe-lines were introduced in Pennsylvania, the teamsters tore them up; the inventor of the pipe-line system of transporting oil died without see THE CONTROL OF LABOR 327...

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