Ford Five Dollar Day

In January 1914 Ford announced a pay rate of five dollars for an eight hour day, roughly double the prevailing wage for factory work.

Overview

Turnover on the new moving assembly line at Highland Park was crippling, with workers quitting the monotonous jobs in huge numbers. Henry Ford and James Couzens responded with a profit sharing plan that brought eligible workers to five dollars a day and cut the shift to eight hours. Thousands of job seekers crowded the plant gates. Eligibility was policed by the Ford Sociological Department, which inspected the homes and habits of workers. Turnover collapsed and productivity rose, and the policy became a classic example of an efficiency wage.