Henry Ford’s Business Model – Welfare Capitalism

Ford was a proponent of  Welfare Capitalism. To keep valuable employees, Ford raised the salary of his workers to $5 per day which was unheard of in 1914 and roughly double the average salary. In the 1920s, he introduced the forty hour week. He also offered a profit-sharing option in which benefits were initially tied to a Social Welfare department that monitored the personal lifestyles of the workers, including drinking, gambling, and family discord.

Ford disliked unions to the extent that when the unions attempted to negotiate a contract, he planned to break up the company. He only backed down when his wife, who wanted the company to pass to their child and grandchildren threatened to leave him.

Tomorrow, Weekend Pics, My Favorite Model Ts      Rita Bay

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