Date of Award

Spring 1970

Document Type



Business, Accounting & Economics


Today, after a decade of nearly full employment, very little is heard about the Guaranteed Annual Wage. Nonetheless, interest in this subject is still high a- mong union leadership, and it is reasonable to expect that, given a slightly less favorable rate of employ-- ment, agitation for employment guarantees by union rank and file will again bring this subject to the fore in collective bargaining sessions.

In this paper, I propose to review past developments on this subject, including early Guaranteed Annual Wage plans, union negotiation of more recent plans, and the evolution and refinement of plans currently in use. In addition, this paper will attempt to analyze the workings of plans currently in effect with regard to their success in achieving stability of employment, their ef- . fect on the American working man, and on American society in general.

The paper is divided into three chapters, the first dealing with the early history of the Guaranteed Annual Wage including employer initiated plans of the pre-World War II era, political developments fostering Guaranteed Annual Wage and the attitudes of union and management prior to the Ford, agreement of 1955* The second chapter deals with developments in the guaranteed annual wage from the date of the Ford settlement through 1945. The third chapter attempts to analyze these developments as to the success of the guaranteed annual wage, and its effect on our society.