LABOR'S NEW STATUS 303

principles as to wage fixation and a concrete method of
cooperation on the basis of economic performance, has
been formally adopted by organized labor and management
and put into effect. The precedent has, therefore, been
established for proper cooperation in industry. From this
beginning, management and labor may be expected to cooperate
 so as to attain the maximum of industrial stability
and prosperity.?

CooPERATION BETWEEN UNIONS AND MANAGEMENT
NECESSARY

So far as wages are concerned, it may be stated in conclusion
 that there has been one motivating force in the
new industrial revolution—a force which has been of
fundamental significance in its bearing upon future policy
—namely, the fact that the emphasis laid upon productivity
as the basis of success for the new industrial order has
inevitably led to the discarding of all old wage theories and
standards. It has been freely conceded that wages could
be indeterminately advanced so long as productiveness was
increased and costs reduced. This attitude has been further
 strengthened since it became evident that mass production
 could be profitably accelerated only by corresponding
 increases in domestic purchasing power. Hence, the
economy of higher wages under the condition of increased
productive efficiency became firmly accepted and established
 by industrial and financial leadership.
The old wage theories therefore were forsaken. A new
general policy was substituted. The standards and sanctions
 as to wage theories and standards, up to 1923, were
largely a matter of enlightened public opinion and educa.

—

1 For a more detailed presentation of all phases of union-management co-Operation
 see article entitled “Cooperation of Trade-Unions With Employers.”
Monthly Labor Review, U. S. Depot. of Labor. October. 1928. pp. 1-23.