WHY WE CELEBRATE HENRY FORD'S $5.00 WAGE GAMBLE

100 years ago this month one of the most important events in automotive history occured. Henry Ford offered to pay workers at his Highland Park plant a minimum of $5.00 per day. He didn't do it because he was a nice guy. Mr. Ford rationalised this move on the basis of stability. Prior to 1914 American economic policy was to pay workers at a variety of rates, often as low as possible, which led to absenteeism, an unstable work force, and a deep cut in  profits.

There were other benefits, too. The workday was cut from 9 hours to 8 hours per day and Ford announced that the $5.00 a day salary was sufficient that his employees could then afford to buy their own new Model T. His moving assembly line had been installed the previous year which, together with the $5.00 wage, enabled greater volumes with consistent results.

Thousands of men lined up outside the Highland Park Plant, eager to be hired for a liveable wage. They did, indeed, buy the cars they made, but so did the rest of the rest of the country. This resulted in more money being spread through the financial system, to everyone's benefit. Incidentally, the only reason all the cars were black was that black paint dried faster and with numerous coats applied the bodies could be finished in one-tenth the time. As paint technology changed more colours would be offered.

In his book The Model T, a pictorial chronology of the most famous car in the world, Ford Corporate Historian Robert C. Kreipke tells us: "The Highland Park Plant was catching the attention of the entire world. The Model T was rewriting the laws of manufacturing and assembly. Inside the confines of the company, new opportunities for the future arose on a daily basis."

In writing about automotive history we tend to focus on the car, not the plant nor the manufacturing system nor the labor force that builds it. Henry Ford's revolution, 100 years ago this January, deserves greater praise than any one automobile save, of course, the Model T itself. Today we can all celebrate his accomplishment through mobility, a better lifestyle, and a stable income. Exactly as Henry Ford planned it.