Doubtless some of those who are especially interested in working men will complain because under scientific management the workman, when he is shown how to do twice as much work as he formerly did, is not paid twice his former wages, while others who are more interested in the dividends than the workmen will complain that under this system the men receive much higher wages than they did before.
It does seem grossly unjust when the bare statement is made that the competent pig-iron handler, for instance, who has been so trained that he piles 3 6/10 times as much iron as the incompetent man formerly did, should receive an increase of only 60 per cent in wages.
It is not fair, however, to form any final judgment until all of the elements in the case have been considered. At the first glance we see only two parties to the transaction, the workmen and their employers. We overlook the third great party, the whole people,—the consumers, who buy the product of the first two and who ultimately pay both the wages of the workmen and the profits of the employers.
The rights of the people are therefore greater than those of either employer or employee. And this third great party should be given its proper share of any gain. In fact, a glance at industrial history shows that in the end the whole people receive the greater part of the benefit coming from industrial improvements. In the past hundred years, for example, the greatest factor tending toward increasing the output, and thereby the prosperity of the civilized world, has been the introduction of machinery to replace hand labor. And without doubt the greatest gain through this change has come to the whole people—the consumer.
Through short periods, especially in the case of patented apparatus, the dividends of those who have introduced new machinery have been greatly increased, and in many cases, though unfortunately not universally, the employees have obtained materially higher wages, shorter hours, and better working conditions. But in the end the major part of the gain has gone to the whole people.
And this result will follow the introduction of scientific management just as surely as it has the introduction of machinery.
To return to the case of the pig-iron handler. We must assume, then, that the larger part of the gain which has come from his great increase in output will in the end go to the people in the form of cheaper pig-iron. And before deciding upon how the balance is to be divided between the workmen and the employer, as to what is just and fair compensation for the man who does the piling and what should be left for the company as profit, we must look at the matter from all sides.
First. As we have before stated, the pig-iron handler is not an extraordinary man difficult to find, he is merely a man more or less of the type of the ox, heavy both mentally and physically.
Second. The work which this man does tires him no more than any healthy normal laborer is tired by a proper day's work. (If this man is overtired by his work, then the task has been wrongly set and this is as far as possible from the object of scientific management.)
Third. It was not due to this man's initiative or originality that he did his big day's work, but to the knowledge of the science of pig-iron handling developed and taught him by some one else.