THEORY OF PRODUCTIVE EFFICIENCY 175
injustice to our members. This is our protective function. If,
however, we want to lay claim to the argument, as the theory
of industrial democracy stipulates, that industry can afford
better wages and working conditions when its workers share
in the managment of it, then we must be prepared to assume
definite responsibility for better industrial performance. We
must do this by means of our union organizations working
in cooperation with management. Thus do we play a con-
structive, as well as a protective part in industrial govern-
ment.
Principle (3), agreement between unions and management
to cooperate for public service, is the economic justification
for enlarging the jurisdiction of our unions in industry. If
as a result of cooperation railroads are not going to run bet-
ter than they were before, then the workers’ argument for
more democracy in industry comes to naught.
Principle (4), sharing the gains of cooperation, is the eco-
nomic justification for our part in the cooperative program.
Even should industry be run better from the public or man-
agement’s point of view as a result of cooperation, the
workers’ interest in cooperation would not long endure, if
‘hey themselves did not get tangible benefits out of it. These
benefits must take the form, first, of steadier and more em-
ployment ; second, better employment; third, greater yearly
income, and fourth, better wage rates.
WILLIAM GREEN, PRESIDENT, AMERICAN FEDERATION OF LABOR!:
Labor is interested in the successful management of indus-
try, because it reasons that, with the introduction of economy
processes in the development of efficiency and increased. pro-
duction, the cost of manufacturing and production can be re-
duced without lowering the standard of the workers or reduc-
ing wages. Labor firmly believes that if the cost of produc-
tion of commodities must be lowered it should be accom-
plished through the promotion of efficiency in workmanship
and management. the elimination of waste and the introduc-
"1 American Federation of Labor Pamphlet, “Unions Reduce Industrial
Waste.” by William Green.
