In 1913, Henry Ford started paying his workers $5 per day, a huge amount for the time and a more than 100% raise from what they were previously earning. It’s seen as a milestone in modern capitalism, the moment when employers realized that workers were also consumers, that raising their wages created a generation that would buy as well as work.
Last week in London I randomly read The Greatest Business Decisions of All Time, which has a chapter on Ford’s decision and some of the unsightly details of how he rolled it out.
It came with some strings attached. The headline pay was divided into two parts: wages (about $2.40 per day for an unskilled worker) and “profits” (about $2.60 per day). All workers received wages for their work at Highland Park, but they shared in the profits only if they were deemed worthy. Six months’ service was required to qualify.
Married men were eligible, as were men under the age of 22 who were supporting widowed mothers or brothers and sisters. All women supporting families also qualified. But unmarried women and men who were not supporting dependents were excluded.
Ford made it clear that a “clean, sober, and industrious life” was required to receive the higher pay. An employee had to demonstrate that he did not drink alcohol or abuse his family. Moreover, he had to make regular deposits in a savings account, maintain a clean home, and be of upstanding moral character.
Workers who accepted the new wage would also be subject to company rules about how to conduct themselves during off-hours. As Ford explained it, “The object was simply to better the financial and moral status of the men.”
To enforce his lifestyle dictates, Ford mobilized an army of investigators that at one point numbered 200. They were expected, Lacey writes, “to make at least a dozen house calls every day, checking off information about marital status, religion, citizenship, savings, health, hobbies, life insurance, and countless other questions.” To help them meet their quotas, Ford provided each inspector with a new Model T, a driver, and an interpreter for help in ethnic neighborhoods.
I know this sort of thing isn’t all that surprising, but it really does bum me the fuck out. This is exactly what people mean when they talk about privilege. Here was one of the best jobs, in one of the nation’s most economically dynamic cities, and it was only open to men who were the right religion, the right background, who passed the similarity test by their bosses.
I remember chatting with a retired government worker from Belfast at a conference a few years ago who told me that he had a set of interview questions to determine which candidates were Protestants and which ones were Catholics. What primary school did they attend? What neighborhood did they grow up in? What sort of work did their parents do?
It’s appalling, this, not to mention wasteful, and it makes me wonder the ways we do this now. As a gay person, I always feel a bit guilty about the fact that I’ve never experienced any discrimination directly. I’m pretty invisible; by the time people find out I’m gay I’m usually hired.
We talk a lot in this country about how quickly we’ve all made the turnaround on gay rights, and I wonder how much has to do with gay people’s ability to pass these little tests. We were already in the boardrooms and behind the judicial benches way before it was safe to do. Once it was, we had friends and colleagues who had a financial incentive in keeping us there. Most other marginalized groups never get that chance.