Indeed, as a vocal antisemite, he used his status as one of America's most well-known and trusted business leaders to systematically spread conspiracy theories about Jews. His screeds against Jewish people became so well-known at home and abroad that he is the only American whom Adolf Hitler compliments by name in Mein Kampf.
Ford Wage Increases Came With Strings Attached
But while it dramatically reduced manufacturing time—from 12.5 hours to 93 minutes per car, allowing mass production of up to 10,000 Model T cars a day by 1925—it also made his workers’ jobs more monotonous and unsatisfying. The turnover rate at Ford’s Highland Park, Michigan factory soared to 370 percent.
To solve the problem, Ford realized it would be cheaper to raise wages (which at the time were competitive with those at other auto companies) than to continue hiring and training new people at the same pace. So on January 5, 1914, he announced that his company would double wages to $5 a day. The move proved seismic: By prompting wage hikes across the car industry, historians say, it gave American factory workers a crucial boost into the middle class, allowing many to afford their own Model Ts.
At the time, the business titan’s top priority was to stabilize his work force. “Ford’s only goal—and he says this…was to pay people enough money to make them not quit all the time,” says Elizabeth D. Esch, a professor of American studies at the University of Kansas and author of The Color Line and the Assembly Line: Managing Race in the Ford Empire. Before the $5 wage, the company had to hire 52,000 people a year just to maintain a workforce of 14,000. “That’s just not a feasible way to run a business,” she says.
While $5 a day was a generous factory wage at the time, it came with a substantial catch. Technically, workers’ pay remained less than or near $2.50 a day, and the extra money was a bonus they had to earn. The year Ford introduced the bonus, he established a company Sociological Department that sent inspectors to the homes of his employees—at this point, mostly male immigrants—to make sure they were living in a way Ford approved of. Workers were denied the full $5 a day if their wives worked outside the home, if their homes were unclean, if they displayed signs of drinking or gambling, if they took in boarders or if they didn’t contribute to a savings account.
This desire to control his workers, and his belief that he could “improve” them, would become characteristic of Ford’s management style.
Ford Forced Immigrant Workers into a Melting Pot