-
In 1914, $5 per day was double the existing pay rate for factory workers, and on top of that, Ford reduced the workday from nine to eight hours. The day after the “$5 Day” was announced, an estimated 10,000 people lined up outside Ford’s employment office hoping to be hired. Ford’s increased pay greatly improved employee retention since the monotonous and strenuous work of the moving assembly line was causing high turnover. The increased wage had the added effect of allowing many of Ford’s employees to purchase the cars they produced, and the eight hour workday allowed Ford to run 3 shifts a day instead of 2. The increased pay, increased leisure time, and even increased the personal mobility of car ownership were all critical factors in the creation of an American middle class.