THEORY OF PRODUCTIVE EFFICIENCY 17% 
is directly related to the productivity of that people. The 
difficulty is encountered when it is attempted to apportion 
returns on the basis of individual productivity. 
However, progress that has been made in some cases in the 
development of the science of industrial management shows it 
is possible to look forward along this line with some hope of 
results that will afford justice to the workers and to society 
at the same time. 
“LaBor’s MopERN WAGE Poricy” 
In 1927 President William Green, of the Federation of 
Labor, issued an analysis and an elaboration of the declara- 
tion of the Atlantic City Convention of 1925 relative to 
wages and productivity. This interpretative statement de- 
veloped the “modern wage policy” of the Federation and 
held forth the “social wage” as the goal toward which the 
organized labor was striving. The new conception as thus 
put forward laid fundamental emphasis upon the necessity 
of labor receiving its proper share in the output of industry 
and inaugurated a movement to enable the various unions 
to realize this object. It is fraught with such significance 
relative to the future determination of wages that it is re- 
produced in full below : 
One of the chief tasks of organized labor has always been 
‘0 secure higher wages for workers. The struggle for higher 
wages now enters its third phase. 
In the earliest period organized labor struggled for higher 
money wages. Instead of $10 per week it tried to secure $11 
per week, and the next year perhaps $12. 
A second period in the wage policy began as organized 
labor realized that the amount of money is no adequate 
measure for deciding whether a wage is high or low, and that 
it is necessary to relate money wages to prices. Then organ- 
ized labor struggled for higher real wages—that is, wages 
that would buy more.