300 INDUSTRIAL REVOLUTION AND WAGES

l.

The union agrees to cooperate with Mitten Management
 in the operation of properties according to the
Mitten Plan as it has been fully developed in Philadelphia.

Mitten Management agrees that the results of cooperation
 shall first accrue to the benefit of employees
in the form of proper working conditions and adequate
 wages, it being expressly stipulated that basic
wage standards shall be sufficient to support the employees
 in health and comfort, and to provide savings
against old age, disability, and other contingencies.
The purchasing power of basic wage rates, as
thus established, shall be maintained by adjusting
them at regular intervals to changes in living costs,
and,

2.

3.

After these conditions have been established, and a
fair return to invested capital assured, employees
shall have an equal participation with Management in
productive gains arising from cooperation. According
 to the method now in effect in Philadelphia, the
managerial operating fee, which is based on a certain
percentage of gross revenue, will be divided equally
between management and employees, unless some
more acceptable method should be adopted by mutual
agreement.!

The significance of this agreement to industry in general
has been that a comprehensive, constructive, and practical
program is now available to both management and labor,
under the terms of which the most enlightened principles
of wage determination are accepted with further provision
for labor participation in the gains of productive efficiency,
and for employee stock-ownership on a collective basis and
1 For details of this agreement, see pp. 187-191.