"The above result was mostly though not entirely due to the differential rate. The superior system of managing all of the small details of the shop counted for considerable."
The exceedingly dull times that began in July, 1893, and were accompanied by a great fall in prices, rendered it necessary to lower the wages of machinists throughout the country. The wages of the men in the Midvale Steel Works were reduced at this time, and the change was accepted by them as fair and just.
Throughout the works, however, the principle of the differential rate was maintained, and was, and is still, fully appreciated by both the management and men. Through some error at the time of the general reduction of wages in 1893, the differential rate on the particular job above referred to was removed, and a straight piece work rate of 25 cents per piece was substituted for it. The result of abandoning the differential proved to be the best possible demonstration of its value. Under straight piece work, the output immediately fell to between six and eight pieces per day, and remained at this figure for several years, although under the differential rate it had held throughout a long term of years steadily at ten per day.
When work is to be repeated many times, the time study should be minute and exact. Each job should be carefully subdivided into its elementary operations, and each of these unit times should receive the most thorough time study. In fixing the times for the tasks, and the piece work rates on jobs of this
