Ford Motor Company

This excerpt appeared in The Detroit Journal in 1914.

Source 1

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.

“Henry Ford Gives $10,000,000 in 1914 Profits to His Employees.” The Detroit Journal, 5 Jan 1914.

Question 1

Short answer

Summarize the changes that Ford Motor Company has made for its workers.

Question 2

Short answer

How might these changes increase productivity at Ford?

Question 3

Short answer

Ford wanted to avoid unions. Why might these changes weaken the influence of unions on Ford Motor Company?

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