Word: scanlon
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Besides the attitude of union and management, there are other important factors. The amount of intelligence and imagination available on both sides counts heavily. Large size is a complication; most of the Scanlon plants are small--averaging perhaps 500 workers. (Seanlon, however, has installed the plan in a Canadian steel plant of 5,000, and is at the moment experimenting in a subsidiary plant of a large corporation). But in spite of the limitations, the 40-odd companies in which the plan has been introduced represent a very wide variety of enterprises...
...When the Scanlon plan goes into operation, it tends to create a team where before there were two factions. The union is strengthened, in the new role of junior partner with a say in company policy. Men in the shop flood the production committees with suggestions. Production goes way up; spoilage and waste are cut down. As Seanlon says, "The men know who their competitors are"; the whole company becomes a competing unit...
...Scanlon plan is no panacea. There are plants where it will not work, and others where it will not work well. It has not been tried on a very large scale. But as a successful experiment in a more mature and productive labor-management relationship, it is highly significant...
...Scanlon plan is unique in that it was developed in union headquarters. The so-called "profit-sharing plans" have been management creations. These generally are in bad favor in labor circles because of the frequency with which they have been used to subvert the union by "buying off" the workers. Profit-sharing has not been especially successful or popular in this country--only about one-half of one percent of business use it in any form. Of these, a few have recognized that profit-sharing must be coupled with a degree of "management-sharing" to be most successful...
...management." Fifteen years ago, industrial relations were often in a state of civil war--there was no area of agreement. Since then, the general acceptance of unions and collective bargaining has set out at least a small area of agreement by contract on wages, hours, and working conditions. The Scanlon plan goes a big step further. By delegating some of management's responsibility for increased productivity to the workers, and regarding them for increase, the plan gives the two parties a wide area of agreement: the common goal of making their enterprises increasingly productive...