LABOR’S NEW STATUS

200

from management-employee cooperation, economies,
and efficiencies.
Participation in revenue gains was first guaranteed to
employees, as has already been stated, according to an
agreed-upon ratio of gross operating revenues. This was
changed later to a so-called “wage dividend,” which represented
 approximately 10 per cent. of the money results
secured from lower costs of operation. The “wage dividend”
 was accepted by the Pennsylvania Public Service
Commission, but later was ordered discontinued by the
courts, and, as a result, the existing method was adopted,
under which employees share on a 50-50 basis with management
 in a fee for operating the property. This fee is
based on a certain percentage of the gross revenues from
operation.
Employees have collectively used their shares of productive
 gains to purchase common and preferred stock of the
company. They now hold more than 30 per cent., or the
largest single block of the common stock, and their representatives
 are active members of the Board of Directors.
Practically speaking, the employees collectively control the
company.
Recently, the Mitten Plan has received an added significance
 from the fact that Mitten Management has entered
into a formal agreement, on the basis of the principles of
the Mitten Plan, with the Amalgamated Association of
Street and Electric Railway Employees, the national organization
 of the street railway employees, and one of the
oldest and most conservative unions affiliated with the
American Federation of Labor. This agreement, which
was arranged by Dr. A. A. Mitten and Mr. O. L. Mahon
of the Amalgamated Association, contains the following
remarkable provisions, so far as the constructive policy of
organized labor is concerned: