"The rates once established, disputes soon arose over the individual piece prices, employees contending that it was impossible to earn the basic rate agreed upon with the prices set on certain operations and foremen contending that certain other prices allowed the basic rate to be earned too easily, which tended to laying down on the job and consequent loss of production. Here again, the application of the plan was brought out and continues to the present to be a very satisfactory medium for obtaining justice for both sides.
"Under the plan of representation the detailed time study has been formally recognized by the representatives and other employees as the only fair and just basis for the final settlement of differences of opinion in regard to piece work prices.
Piece Rate vs. Time Scale
"We already had a piece rate department and had practised a system of price setting through time study. Nevertheless, the force was small and the field large. Many of the prices, therefore, were the result of comparison with prices obtained from more or less unreliable sources. Many times the biased information of the foreman was accepted and lacked a consideration of all the conditions. Moreover, the time study man was looked upon by the shop as an undesirable citizen. His position was very hard to fill and very little thought of by those who might be competent. He was the object of much abuse and there were few workmen who would concede that he possessed the least spark of justice or honesty. Consequently, the tendency was to try to fool him as often as possible by 'stalling.' At times even the foreman, ignoring the fact that much of the spoiled work could be accounted for by lack of proper supervision on his own part, was more inclined to blame the prices and give the man his support in such an attitude. Furthermore, many employees believed it to be the general policy to compute the price at the rate which, in the opinion of the individual setting the price, was proper for the particular workman it involved. In this way, the prices were subject to all the vagaries and prejudices of human nature. Owing, also, to the uncertain status of the price setters, the final price was often but a poor compromise and the resulting inconsistency of the piece prices is apparent.
"Our plan provides also for the participation of representatives in the adjustment of individual piece prices. Here again, it proves to be the only successful medium for showing the facts to both sides. Now, whenever a price is questioned and a time study is to be made of the operation, the operative has the privilege of requesting the presence of his representative to see that he gets a square deal. In this way the tendency to deceive by stalling time was overcome, for, when shown up to his own representative, the operative has no comeback. All suspicion that a biased judgment of the foreman was accepted, or that affecting conditions were overlooked was allayed. The question, also, whether spoiled work was accountable to the price being low or lack of proper supervision on the part of the foreman, was easily settled, for, the representative being himself a workman in the department, was more inclined to defend both himself and the price when poor supervision existed, the final result often proving to be a decided improvement all around.
Cooperation Developed
"There has now developed a cooperation between the representative, the foreman and time study department, the representative acting as a sort of buffer, showing a desire to have the work done in the quickest method and on machines that were suitable for it. We've always made them that way,' is now seldom offered as an alibi, under the close analysis given the job by the combined efforts of this cooperation.
"Another time-worn argument of the foreman used to be when a man protested a price that 'it covered the man who did the job previously for that price and who made good money on it,' which was true. But we found at the time the representative entered on the scene, that there was another factor which had often been overlooked, namely, the type of machine that the price had been set on. It might have been a lathe job and timed on a certain lathe and the operator who was protesting against the price was doing the job on a different type of lathe than the one the price was originally set on. This led the way to a new field and later on we find that, by this checking up, the type of machine best suited for the particular operation is given proper consideration.
Records Show Good Results
"This has been done, and our records show that the result was a new reduction of piece prices and consequent increase in production with continued high earnings which established a sound confidence and produced harmony and greater diligence.
"It will be seen that it is but a short step from this interest by the employee and his representatives to a popular demand for what may be termed scientific methods.
"By the participation of the employees' representative under the plan of representation in these matters, we do not want to be understood as saying that the result is one in which all are a happy family, for there will always be kicking and controversy, but we believe by allowing the representative to partake of and play a part in the questions of waste, production, improved conditions and the many details that enter into the performing of a day's work, that it has the same effect as the Volstead Act had on beer. We still have beer, but the kick is removed and the same applies to labor troubles. We still have our labor troubles, but the kick is not in it.