On the other hand, the men who use the opportunity offered by a scarcity of labor to exact wages higher than the average of their class, without doing more than the average work in return, are merely laying up trouble for themselves in the long run. They grow accustomed to a high rate of living and expenditure, and when the inevitable turn comes and they are either thrown out of employment or forced to accept low wages, they are the losers by the whole transaction.
The only condition which contains the elements of stability and permanent satisfaction is that in which both employer and employees are doing as well or better than their competitors are likely to do, and this in nine cases out of ten means high wages and low labor cost, and both parties should be equally anxious for these conditions to prevail. With them the employer can hold his own with his competitors at all times and secure sufficient work to keep his men busy even in dull times. Without them both parties may do well enough in busy times, but both parties are likely to suffer when work becomes scarce.
The possibility of coupling high wages with a low labor cost rests mainly upon the enormous difference between the amount of work which a first-class man can do under favorable circumstances and the work which is actually done by the average man.
That there is a difference between the average and the first-class man is known to all employers, but that the first-class man can do in most cases from two to four times as much as is done by an average man is known to but few, and is fully realized only by those who have made a thorough and scientific study of the possibilities of men.
The writer has found this enormous difference between the first-class and average man to exist in all of the trades and branches of labor which he has investigated, and these cover a large field, as he, together with several of his friends, has been engaged with more than usual opportunities for thirty years past in carefully and systematically studying this subject.
The difference in the output of first-class and average men is as little realized by the workmen as by their employers. The first-class men know that they can do more work than the average, but they have rarely made any careful study of the matter. And the writer has over and over again found them utterly incredulous when he informed them, after close observation and study, how much they were able to do. In fact, in most cases when first told that they are able to do two or three times as much as they have done they take it as a joke and will not believe that one is in earnest.
It must be distinctly understood that in referring to the possibilities of a first-class man the writer does not mean what he can do when on a spurt or when he is over-exerting himself, but what a good man can keep up for a long term of years without injury to his health. It is a pace under which men become happier and thrive.
The second and equally interesting fact upon which the possibility of coupling high wages with low labor cost rests, is that first-class men are not only willing but glad to work at their maximum speed, providing they are paid from 30 to 100 per cent more than the average of their trade.
The exact percentage by which the wages must be increased in order to make them work to their maximum is not a subject to be theorized over, settled by boards of directors sitting in solemn conclave, nor voted upon by trades unions. It is a fact inherent in human nature and has only been determined through the slow and difficult process of trial and error.
The writer has found, for example, after making many mistakes above and below the proper mark, that to get the maximum output for ordinary shop work requiring neither especial brains, very close application, skill, nor extra hard work, such, for instance, as the more ordinary kinds of routine machine shop work, it is necessary to pay about 30 per cent more than the average. For ordinary day labor requiring little brains or special skill, but calling for strength, severe bodily exertion, and fatigue, it is necessary to pay from 50 per cent to 60 per cent above the average. For work requiring especial skill or brains, coupled with close application, but without severe bodily exertion, such as the more difficult and delicate machinist's work, from 70 per cent to 80 per cent beyond the average. And for work requiring skill, brains, close application, strength, and severe bodily exertion, such, for instance, as that involved in operating a well run steam hammer doing miscellaneous work, from 80 per cent to 100 per cent beyond the average.