The Ford Five Dollar Day

http://www-personal.umd.umich.edu/~ppennock/L-FiveDollarDay.htm

Three Components of Ford�s New Program:

Ford had tried many of the programs listed above, but many of his workers were still dissatisfied, and Ford had to deal with costly problems of high turnover and absenteeism.� Dissatisfied workers were less efficient, so in his quest for efficiency, Ford tried something new and, among fellow businessmen, controversial.

1. Eight hour work day

He lowered the work day to 8 hours.

1. $5 day

he offered his workers $5 a day (which was an exorbitant amount at the time) but they could only get the full $5 if they met certain conditions

1. regular wage (earned for working) - $2.34 was earned for working
2. profit sharing amount� - �and $2.66 more could be earned if Ford determined that the worker was living �right.�� It was a conditional gift.
3. Set up Savings & Loans for Workers � (a S&L is basically a bank) He set up a special Ford bank to encourage the workers to save the extra $ they�re earning.