In the abstract, it is impossible to balance these various possibilities
with complete assurance. The only inductive studies of value which give
any indication of the probable result are those which have been made
upon the results of living wage legislation. These, almost without
exception, make the price increase resulting from standardization,
inconsiderable.[83] They are witness to the fact that improvements in
the level of industrial management and a gradual elimination of the less
competent employers have frequently taken place. The opinion seems
warranted that unless standardization is introduced under very
unfavorable circumstances or in the form of an extremely violent upward
movement, it will not cause a considerable or permanent rise of prices,
but will rather bring improvement in industrial organization and lead to
a more intelligent use of labor in industry. Along with this, there is
reason to hope that it will have a favorable reaction on the efforts of
the wage earners.
8.--The whole subject of the effect of wage standardization upon the
output of the wage earners remains to be considered, however. It is an
aspect of the subject which has been in the forefront of discussion. It
also is a topic which cannot be satisfactorily discussed apart from a
larger one--that of the effect of unionism upon production.
The most bitter opposition to trade unionism has been connected with
allegations made in this regard. These have taken different forms, but
they almost always express one contention. That is that if a standard
wage is set for work of a given kind, and if all men engaged upon that
work receive that wage irrespective of small differences in ability,
there will remain no stimulus for the abler workmen to exert themselves.
Or in other words, that the standard wage makes slackers of all men.
Sometimes this criticism is leveled only against the standard time wage;
at other times against the standard guaranteed minimum wage, such as
there used to be in the English coal fields; and, at still other times,
against any method of wage payment which takes full power out of the
hands of the employers to make an individual wage bargain with each
worker.
These contentions have some basis on occasion. More often they arise
from a misconception of the place of the wage earner in industry, or
from a general hostility to labor unionism. Wage standardization does
not mean that all wage earners receive the same wage irrespective of
differences in ability. It simply sets a minimum standard for all
workers of the group who are about the average in ability. It is
designed to end all differences in remuneration, save those which arise
out of differences in ability. It may be worked out in systems of
payment by results, as well as in systems of time payment.
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