AP Success - AP US History: Henry Ford & Labor Innovations
“Henry Ford Gives $10,000,000 in 1914 Profits to His Employees.” The Detroit Journal, 5 Jan 1914."Henry Ford Gives $10,000,000 in 1914 Profits to His Employees. Doubles Pay of 25,000 in Auto Works. The Ford Motor Co. will give to its employees during the year of 1914 the sum of $10,000,000 in addition to their wages. This will not be a wage increase, but a distribution of profits... A minimum wage of $5 a day will be established by the addition of the profit distribution to wages. The present minimum wage in the great motor car factory is $2.34... Further, the 8-hour day is instituted. At present the Ford factory has two 9-hour shifts. It now will install three 8-hour shifts, the factory working continuously. Between 25,000 and 30,000 men will benefit greatly by the profit distribution."
Question 1
What was the primary reason for Henry Ford's distribution of profits to his employees in 1914?
To share the company's success with the workers by giving them a portion of the profits in addition to their wages.
To fund the employees' purchase of Ford automobiles, thereby increasing sales.
To settle a large-scale strike that had halted production at the Ford Motor Co.
To comply with new federal labor laws mandating profit sharing in large corporations.
Question 2
How did Henry Ford's profit-sharing initiative affect the minimum wage of his employees?
The minimum wage effectively increased to $5 a day with the addition of profit distribution.
The minimum wage was abolished in favor of a purely profit-based compensation model.
The minimum wage remained the same as the profit distribution was considered a bonus.
The minimum wage decreased as the profit distribution was expected to cover the difference.
Question 3
What change did Henry Ford make to the work shifts at his factory?
He increased the workday from 8 hours to 9 hours to boost production.
He eliminated night shifts to improve worker safety and satisfaction.
He introduced flexible work hours to accommodate the personal needs of his employees.
He reduced the workday from 9 hours to 8 hours and introduced a third shift.
Question 4
Approximately how many men were expected to benefit from the profit distribution at the Ford Motor Co.?
More than 50,000 men.
Less than 5,000 men.
Between 25,000 and 30,000 men.
Around 10,000 men.
Question 5
The actions taken by Henry Ford in 1914 can be seen as part of which broader historical trend?
The post-World War II economic boom and the rise of consumer culture.
The New Deal's government-led initiatives to reform labor and economic practices.
The Gilded Age's emphasis on laissez-faire capitalism and minimal worker protections.
The Progressive Era's focus on improving working conditions and labor rights.
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