THEORY OF PRODUCTIVE EFFICIENCY 185

of the mine workers to the United States Bituminous and
Anthracite Coal Commissions. In numerous other cases,
in both basic and secondary industries, labor has also used
the productive efficiency argument as the justification for
higher rates of compensation. In addition to specific declarations,
 official recognition has recently been given to this
theory of wage determination by the American Federation
of Labor by publishing each month in The Federationist a
series of statistical tables showing the extent of labor’s participation
 in the output of the basic industries.

SrecIiFIc PRECEDENTS ESTABLISHED

The results secured from the advocacy of this theory
before arbitration boards and other agencies by organized
labor have primarily arisen in a general way by reference
to the principle involved and not through any specific or
formal acceptance of the theory. Since 1923, obviously,
the great gains have come from the general adoption of
the fundamental theory by the industrial world in considering
 the relation between high wages, labor costs and purchasing
 power of consumers.

AMALGAMATED CLOTHING WORKERS PIONEERS IN
DEevELOPING PRODUCTIVE EFFICIENCY
The Amalgamated Clothing Workers of America, so
far as the’ organized labor movement is concerned, has
been the pioneer in cooperating with management for increased
 efficiency and productivity. Through mutual
agreement between the union and management, actual productive
 standards as related to rates of pay have been
established in many clothing factories. In recent years, the
organization has been assuming a constantly larger share
of the functions of management, and the savings that have
been effected bv this procedure have accrued to the benefit