LABOR’S NEW STATUS
285
A ProrosED METHOD OF WAGE ADJUSTMENT
It is apparent that any general plan for the readjustment
of wages in industry must begin with the lowest group of
industrial workers, and from this starting point work up-
ward in the scale of occupations. This is necessary be-
cause the first essential step toward the accomplishment of
real cooperation and productive efficiency is to place the
lowest grade of workers upon a basis where they can de-
velop both the will and the qualifications for cooperation.
[t would also be sound policy from a human and social
standpoint. Moreover, it would be exceedingly profitable
to industry itself thus to work out reasonable advances in
rates of pay to a multitude of workers who would actually
and potentially become a great reservoir of increased pur-
chasing and consuming power.
After the principles and methods have been laid down
upon which to develop within a reasonable time adequate
standards of compensation for unskilled and semi-skilled
workers, the next step should consist in the readjustment
of the existing differentials—above rates of pay for com-
mon labor—which have been heretofore established on the
grounds of skill, hazard, and responsibility. It would be
hardly possible at once to decide upon a policy of main-
laining pre-existing differentials for those in the higher
groups of labor, after the basic rates for unskilled em-
ployees had been radically increased. Drastic changes and
dislocations would have to be avoided. All the relevant cir-
cumstances surrounding each specific trade or industry
would have to be considered. The ultimate goal to be
aimed at, however, would be the establishment of basic
rates for unskilled and semi-skilled workers adequate for
the maintenance of living standards of health, modest
comfort, and savings, as shown by sound budgetary studies,
and above these minimum rates the fixing of pre-existing