Social Justice

More than a century ago, Ford Motors announced a wage hike. They based the decision on a sense of justice.

It is our belief that social justice begins at home. We want those who have helped us to produce this great institution and are helping to maintain it to share our prosperity. We want them to have present profits and future prospects. ... Believing as we do, that a division of our earnings between capital and labor is unequal, we have sought a plan of relief suitable for our business.
-James Couzens, Ford Motor Company treasurer, announcing the doubling of wages to $5/day on Jan 5, 1914

The Wall Street Journal denounced Ford's decision "to apply biblical or spiritual principles into a field where they do not belong." The Journal claimed Ford had "committed economic blunders, if not crimes." The result of Ford's action was a major reduction in worker turnover and a doubling of profits within five years. Ford was responding positively to its workers requests and the urging of labor unions. And the results were mostly good for both parties.

In later years Ford clashed violently with the unions. That action led to investigations, poor publicity for Ford, and eventually a contract between the United Auto Workers union and Ford.

If the recent election is any indication, many now consider it more noble for a tycoon to deny workers their wages based on arbitrary notions of quality than for a community to insist on a reasonable living for every worker.

I won't pretend to understand all the economic benefits and liabilities of increased wages. But I have a hard time believing that increasing the minimum wage will bring economic disaster. As income disparity increases, I hope some communities are free to experiment with rules about wages.

In Michigan, where Ford years ago made some commendable decisions and other wrong-headed ones, that freedom will not be tolerated. Here, the state denies communities the right to make decisions about shopping bags, much less about wages. Doesn't strike me as justice.

Note: Thanks to A Word A Day, which posted the Couzens quote as its thought for the day.