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Automotive
On January 14 , 1914 , Henry Ford revolutionized industrial labor practices by introducing a $ 5-a-day wage and an eight-hour workday at the Ford Motor Company . This was a groundbreaking move , doubling the average wage of factory workers and significantly reducing working
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hours from the prevailing standard of nine or ten hours a day .
Ford ’ s motivation was both philanthropic and pragmatic . High turnover rates plagued factories at the time due to poor working conditions and low wages . Ford believed paying workers more and
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reducing their hours would not only stabilize his workforce but also improve productivity and quality . The strategy worked ; absenteeism dropped , employee retention improved , and efficiency increased , as workers became more committed to their jobs .
This initiative also had profound social implications . With higher wages , Ford ’ s employees could afford the very products they were building , such as the Model T , fueling a virtuous cycle of consumption and production . It marked the dawn of the modern middle class and helped establish the concept of a consumer economy .
Ford ’ s decision sparked debates and imitation across industries , as other companies were forced to improve wages and conditions to compete for workers . Critics argued it was excessive , but Ford saw it as an investment in his workers and his business . His approach redefined the relationship between labor and management , setting a precedent for fair wages and humane working hours , which remain cornerstones of labor rights today .
Ford ’ s bold experiment turned his company into a global powerhouse and reshaped industrial labor practices worldwide .
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