APRIL 5, 1953
PAGE FIVE.
Portions Of W. R. Murphy’s Speech
(ConHnued From Page One)
“WE live in a world of change,
^he American system of competi-
tive free enterprise thrives on it.
Without it, the wheels of industry
Would grind to a standstill. And in
plant here it is safe to say that
the changes that have been
Wade during the past several years,
including the recent ones, will over
''he long period result in benefit
for everyone concerned.
“Since I joined the Firestone
oi^ganization in 1907, I have seen
^^ny changes in industry general
ly and particularly in the Firestone
^^ganization. During that time I
have been involved in labor rela-
tions, in one way or another, and
some of the most important chang
es have been made in the field of
management—labor relations.
When a man has been on one
job for as long as I have been, he
sometimes asked ‘If you had it
to do over again, would you take up
the same line?’ That is a tough
question. But I would answer it—
yes.
^y job has always been an in-
^resting one. But more important
been the fact that I had the
Sood fortune to work under an
^piinently successful man who con-
^^dered the best interests of his
^^ployees a basic element in run-
his business. Harvey S. Fire-
® one, who founded the Company in
Was always deeply concern-
> not only with the wages his men
®^rned and the progress they made,
^ though both these factors ‘ were
j^^cessarily of great importance,
concern went further than that.
® general well-being of the em-
®yees on and off the job, mental-
y and physically was, in his esti-
as important as the wages
earned.
. He was years before his time
the belief that a man had to feel
joK ^ in his person on the
^ > and that he had to derive some
j^^^^^^action from the work he did
he became a satisfactory
£^^^^®yee who would do a satis-
‘His
y day’s work.
Jj. xiarvey o. riresiuiie,
'( Chairman of the Company, was
for his duties by his
her and was taught the same
philosophy. He, there-
tio^' ^^i^i'ies on in the same tradi-
of that, my job, while it
never been an easy one, has
Wh’^u other hand, one in
I t^^ ^ never had to fight for what
ought was right, and by that I
Plo^^ was good for the em-
as Well as the company.
* * *
f^ont office in Akron has
of been sensitive to the needs
on ^^L^^P^oyees, whether they were
level or management
farsi Vi ^^nagement has been
carr^ progressive in
these measures to fulfill
every And in practically
gegtio where I made sug-
^^tion better the working con-
er and^l^^^ employees, the found-
trei^pi were always ex-
«j ^ ^^'Operative.
iTiy gone into this detail of
ment with top manage-
^ause ^ period of time be-
portaji utmost im-
important because I
representatives
^^^esto^^^^ executives of the
^hat ^^g^nization, to realize
have t changes which
“I ^ place in your plant.
therefore, like to dis-
^ you briefly some of the
company’s industrial relations
policies and their reasons for being.
❖ ❖
“IT has been the policy of the
Company from the beginning, 53
years ago, to keep abreast of the
times and whenever possible ahead
of them.
“The Company’s slogan, ‘Best
Today, Still Better Tomorrow,’ was
not adopted merely because it
sounded good. It indicated a basic
policy upon which the Company
conducts all its business.
“In just one phase of our opera
tions, namely Research and De
velopment, the Company spends
millions of dollars every year to
achieve what the slogan promises.
In other aspects of the business the
principle of the slogan holds true.
It is, therefore, no idle boast or
pretty promise. It means exactly
what it says.
“The principle of the slogan is
applied to our relationship with
the employees of the Company just
as it is applied to Research and the
products we make.
“Throughout the entire Com
pany, there has always been a basic
policy upon which our industrial
relations are based.
“The principle involved is a con
stant one. It does not change. It
carries out Mr. Firestone’s basic
ideas. But since our business and,
as matter of fact, the whole of
American industry, operates in a
climate of change, our industrial
relations policies have from time to
time undergone revisions to meet
changed conditions.
“Some of these revisions are
brought about as a result of our
own independent thinking. Other
revisions are made as a result of
changes in other companies or in
large segments of industry.
“For instance, we keep ourselves
constantly informed on working
conditions in other plants similar
to ours. We do this so that we can
maintain wages and'working condi
tions in our own plants, which will
compare favorably with any of the
other plants.
“This is our practice not only in
the Gastonia plant but in our other
plants as well.
“In making this comparison I do
not want you to think that Fire
stone is trying, in terms of wages
and working conditions, to out
strip all other companies in the
industry. That is not true. But
what is true is this: We try to
maintain an average in the working
conditions of our plants that is at
least the equal of any other and,
whenever possible, better than
average,
* * *
“THIS brings me to the recent
changes made here in the Gastonia
plant, and announced on the plant
bulletin boards.
“The first of these changes which
I would like to discuss is the one
concerning our vacation program.
The last issue of the Firestone
News contained an article on the
subject. It went into some detail to
explain the manner in which it will
be applied. But I would, neverthe
less, like to go into the matter with
you.
“According to the new vacation
program, employees who were on
the active payroll on October 31st
of last year became entitled to
vacations for 1953 according to
their service.
“Employees who had completed
1 throuerh 4 years were entitled to
Le rel B years through U years
two weeks, and 15 years or more
three weeks. The most significant
change applies to employees who
complete their first, fifth or
fifteenth year during the vacation
period. Those employees who did
not have a year’s credited service
on October 31 but who complete one
year before next October 31 will
qualify for a 1953 vacation upon
the completion of the one year, at
which time they will be entitled to
one week’s vacation. Employees
who had 4 years service on October
31 last but who will complete 5
years before next October 31 will
qualify for their second week’s
vacation on the date they complete
the fifth year of service. Employees
with 14 years service on last Oc
tober 31, will qualify for their
third week of vacation in the
1953 vacation period if they com
plete their 15th year before next
October 31.
“Of course, next October 31 the
1954 vacation period will begin
and employees will qualify for
1954 vacations in the same manner
that I just mentioned.
“Those employees who were not
on the active payroll on October 31,
due to layoff or extended absence,
may still qualify for a 1953 vaca
tion by returning to the active pay
roll by May 1, 1953. As you know,
we do not credit service to the em
ployee for the period he is off the
payroll, so the amount of vacation
he gets by returning prior to May
1 will depend upon the credited
service he has accumulated by time
actually on the payroll.
“We have not changed the a-
mounts of vacation pay, which is
still computed on the basis of 2%
of earnings for a 12-month period
for each week of vacation to which
the employee is entitled. The
change in the vacation period
makes it necessary to use a differ
ent 12 months to make the calcula
tion. In order to have the vaca
tion pays calculated ahead, we are
using the preceding 12-month
period ending on September 30. . . .
* * *
“THE idea of carrying extra help
to come in each day to find out
whether any work is available and
to be sent home without pay in
many cases is bound to create re
sentment because it not only
subjects the employee to the costs
of coming in but interrupts his
chance of doing some other work
that day. I do not think it unfair
for the employee to expect there
will be some work for him when he
reports for work, otherwise he
should have been told. You know
they say the word ‘management’
when broken down means ‘manage
men’, and that is your job, to
manage men. . . .
“Probably I should say a few
words on the change in crediting
hours toward overtime in the week
in which a holiday occurs. I suppose
you understand that if an employee
is scheduled to work on a holiday
and does not do so, the holiday
hours would not be counted toward
the calculation of weekly overtime.
“There are six holidays. New
Years, Memorial Day, July 4, Labor
Day, Thanksgiving and Chirstmas,
which even though the employee is
not scheduled to work, he will be
credited with his regular hours to
ward the computing of weekly
overtime. It will work in this way;
suppose the holiday shutdown is on
Monday and the employee regular
ly works an 8-hour shift, and works
Ms full shift on Tuesday, Wednes
day, Thursday and Friday, he will
at the end of Friday have credited
toward overtime, 40 hours and if
he works on Saturday in that week
it will be an overtime day. We do
not expect to pay overtime for
work on a Saturday if an employee
has been absent during the week,
as would be the case if he were
scheduled on the holiday and simp
ly failed to report.
“WE have made Christmas a
paid holiday for employees—single
time for those employees who
qualify and are not scheduled to
work and double pay for those who
work. If an employee is scheduled
to work part of the Holiday he will
be paid double time for the part
worked and single time for the re
maining hours.
“Our policy of payment for the
Christmas holiday contains the
usual qualifying provisions. An em
ployee who is scheduled to work on
Christmas Day and fails to work
except because of death in the im
mediate family or disabling per
sonal injury or proven unavoidable
illness will not receive holiday pay.
. . . . I think the meaning of ‘dis
abling personal injury’ is evident
but when we speak of ‘proven
unavoidable illness’ we mean bona-
fide sickness that is not the result
of the employee’s own conduct.
We’re not opposed to a little cele
brating around the holidays but we
do think that an employee should
think enough of his job and his
responsibility to the company to
keep himself available for work
when he has been scheduled to
work.
“Unfortunately, when you pay
for a holiday not worked there are
always a few who see a good
reason for making a two-day holi
day of it.
“The result is poor production
and costly production the day
before and the day after the holi
day. For that reason all the holiday
pay plans I know of require the
employees to work his last full
scheduled shift before the holiday
and his first full scheduled shift
after the holiday, except when he
is prevented from doing so by
death in the immediate family,
disabling personal injury or proven
unavoidable illness. These terms
have the same meaning that I have
explained in connection with the
requirements of working on the
holiday, if scheduled. It is not our
intention to apply this in an un
sympathetic manner but it is neces
sary to apply the same principles
to every case. . . .
“I am sure that you understand
when we talk about the last full
scheduled shift prior to a holiday
that would not, necessarily, mean
the shift on the day before the holi
day. It would mean the last day
the employee was scheduled to
work before the holiday occurred.
Sometimes the employees ask to
be excused before or after a holiday
and if they are excused the day be
fore a holiday, for example, the
last scheduled shift would be the
day previous to that. . . .
“If there is a compelling reason
why a person should be excused,
he should be excused, if at all pos
sible. If the person does not have
a real need for the day off, then
he should not be given the day
off, unless you can spare him and
it will not require working someone
overtime in his place.
“Remember that one of the
reasons we are giving this paid
holiday is to promote ^better atten
dance immediately before and im
mediately after the holiday. . . .
“It is important that you under
stand the administration of holiday
pay, vacations, reporting pay and
computing weekly overtime. . . .
“Ordinarily changes such as I
mentioned would be made gradual
ly but as you know for quite some
time we have had government con
trols. Now that controls have been
removed, we can go head,
“So much for these new sub
jects.
* * H!
“WE are living in rapidly chang
ing times, and it is management’s
responsibility to keep up with these,
changing times. Mr. H. S. Fire
stone, founder of the company,
was a believer in this program. His
son, Mr. H. S. Firestone, Jr., who
is now Chairman of the Board, has
the same sentiment. This is evi
denced by the different things that
we are doing in our various plants;
our newspapers, our recreational
programs, and the other contribu
tions that we make to employee
and community welfare.
“You men sitting here tonight
are in the eyes of the people who
work with you and in the eyes of
the community, Firestone manage
ment. It is true there are, un
doubtedly, a lot of people locally
who know Mr. Firestone, they
probably know Mr. Karl, but to the
people who see you every day, you
are the ones who tell them what to
do and how to do it and if they
are doing it right or wrong. To
these people you are a representa
tive of Firestone management. Tho
corner grocer in your neighborhood
has you listed in his book as a,
member of Firestone Management.
To him the things you say and do
have the endorsement of Firestone,
and it is up to you to meet your
responsibility as a member of
management.
“In the small plants the owner
or operator of the business could
maintain personal contact with all
his employees. He not only knew
the employee but he knew his fami-’
ly and the intimate details concern
ing his life, and he adjusted his
program as he went along. It is
more difficult to do this where you
have a large business. Possibly you
do not realize that Firestone has 34
manufacturing plants scattered
over the world. Firestone also has
700 retail outlets, which employ
anywhere from 2 to 50 or 60 people
at each of these locations, and that
we employ nearly 50,000 in these
various domestic operations. This
does not include Liberia Planta
tions.
“To the employees in these
various locations the men who oc
cupy positions similar to yours are
recognized as Firestone Manage
ment, We have a good reputation in
the community if the people in your
position are well accepted in the
community. We have good products
at these different plants if you
in your capacity see that your em
ployees produce a good product.
Remember if we do not have a good
product we will not stay in busi
ness, Our customers will see that
we get out of business in that they
will not remain our customers.
“This brings me to a point, I am
not sure how often it occurs in
the running of commercial yarns
but I would think it might occur
quite frequently, and that is the
employees may resent the change
in type or style of yarns which
you are running on different ma
chines, I am sure everyone in
(Continued on Page Six)