Show n Labor And Capital By Maurice l R. R Franks Editors Editor's Note Maurice R R. Franks is Director of t the e National Management Labor-Management Foundation and Editor of its official publication pub publication li PARTNERS Many a labor leader sincere or otherwise would have us believe that everything the American worker enjoys to today today today to- to day has come to him solely as a result of the rise of organized labor and nd that each and every gain has been made in the face of stubborn resistance by organized capital This contention is more rash than rational and to fall I for it is 10 to get a badly distorted picture of the actual facts None o of f us can afford this in these days when the survival of our American economy depends upon mutual understanding and harmony between the partners of indu industry try the worker and his employer Certainly the unions have played a prominent part in elevating the social and economic status of the worker particularly the organized worker But to run away with the thc notion that the unions have done this job is isto isto t to S labor abor under a decidedly false impression The standard of living of American workers has steadily i increased creased over the years first of all because of the progress of American industry because of capital investment in technology technology technology tech tech- plant capacity and marketing It was vas the development of production mass-production technique by capitalized in industry industry industry in- in which enabled management to pay l labor bor higher real I wages With mass production of goods came increased purchasing purchasing purchasing pur pur- chasing power for the worker in particular in the form of more dollars with which to acquire priced lower-priced commodities Here then is a highly significant contribution to the ec economic welfare of the workingman one which enriched his home life not as as' a result of militant unionism but rather as the free result of capitalistic vision ingenuity and enter enter- prise No union we should remind ourselves played any part parti i iii Henry in H Henry nry Fords Ford's development of a priced low-priced automobile nor was any demand of labor behind his historic move to establish a day a minimum wage for his workers at a time when the average wage for the industry was somewhere aro around nd per day As a matter of record the vision of ofFord ofFord I Ford the capitalist exceeded the vision of any of the labor I leaders of his day As a pioneer mass producer of automobiles automobile's automobiles automo automo- bil biles bile's s he saw his workers as not only so many production hands but also as so many potential customers for his pro pro- duct So when we strike off a medal to pin on the breast of organized labor for having bettered the lot of the worker we must strike off one of equal size and and- brilliance to pin pinon on the breast of its partner capital Lacking the benefit of production mass-production machinery and technique there would not be enough cars produced to supply the members Wal- Wal Walter of Walter Walter Wal Wal- ter Reuthers Reuther's Automobile Workers Union no matter how loudly Walter might shout nor how hard he might pound the table at making contract-making time Nor is it it likely that Phil Murray without the facilities facilities and know-how know would be able to to turn out enough metal for all his million members to supply the mousetrap industry All along the line we find labor and managements combining to lighten their mutual burdens and to provide 1 I for fr their mutual gain At no point is it a solo performance J always it is a case om cm partners at work Capital through the agency of management provides the ingenuity the know- know how the savvy to create saving labor-saving devices Labor through the agency of its unions st steps g ps in to to claim a fair share of the saving for itself That is the true picture of American industrial development development development devel devel- and it is not a picture of labor unions being solely responsible for the social and economic gains made made by the workers |