From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Letter from a New York attorney enclosing a newspaper clipping regarding workforce reductions at General Motors.
| Identifier | ExFiles\Box 174\2\ img230 | |
| Date | 29th December 1937 | |
| JOHN J.{Mr Johnson W.M.} Mc MANUS ATTORNEY AND COUNSELOR AT LAW 150 BROADWAY NEW YORK TELEPHONE: RECTOR 2-0220 Handwritten notes: H/Hs{Lord Ernest Hives - Chair}, Rm{William Robotham - Chief Engineer} (circled), a (circled) December 29th, 1937. M/s Rolls Royce, Ltd., 15 Conduit Street, London. Dear sirs/Clarences:- I thought the enclosed might be of interest to you and the auto industry here generally. Sincerely yours, John J McManus [Newspaper Clipping] NY World Telegram Dec. 28, 1937. G.M. WILL DROP 30,000 MEN; BUSINESS SLUMP IS BLAMED 205,000 to Stay On a Basis of 3 Days a Week By the Associated Press. DETROIT, Dec. 28.—William S. Knudsen, president of General Motors, announced today that General Motors would operate on a three-day-a-week basis for a time beginning Monday. He explained that the General Motors payrolls would be reduced by approximately 30,000 men and that the other employes who are retained—about 205,000—would work three days a week. "The corporation has kept its men employed up to now very recently by producing to the limit given per man in order to help the general economic situation in the communities where plants are located,” he said. "The inventories both in the field and in the plants have accumulated through this policy," he continued. "It is realized that the General Motors decision will have widespread repercussions for business in the communities where the company operates, as for hours given per man in the plants has been a considerable factor to the communities built in those plants. The corporation has built a sound policy from its experience and has gone... is reduced to three days, or about 24 hours a week. Salaried employes will be reduced likewise. The people who will leave, however, are on reduced for all their service. This will probably affect a considerable number of men in all divisions, but there will still remain on General Motors payrolls in the United States more than 205,000 men, and the monthly payroll will exceed $24,000,000. "The corporation regrets the disruption which make this necessary, but sincerely hopes the condition will be temporary," he said. Up to Local Managers Mr. Knudsen said that reduction of force at present would be left to local management, which is in a better position to handle it than anybody else. He added that General Motors would compile the figures on a national basis no later than tomorrow. Mr. Knudsen added: "The whole thing is caused by a slight recession that is felt all over the country. "A feeling of price resistance on one side and the need of a new price on the other has made this change necessary. We will do our best to take care of those for whom we are responsible and we hope we may be able to get them back for the coming year." He emphasized, however, that the... inds announced today after the Roosevelt administration announced a program against monopolies and big business trusts. [STAMP] JAN 7 1938 | ||