Ford Announces $5 Daily Wage
Following the success of the moving assembly line at the Highland Park plant, Ford Motor Company faced high worker turnover and training costs despite rising production of the Model T. On January 5, 1914, Henry Ford and vice president James Couzens publicly announced a profit-sharing plan that would pay eligible workers a minimum of $5 per day—more than doubling the previous average wage of about $2.34—for an eight-hour shift. The new policy took effect January 12 and included requirements for sobriety and proper home life. Thousands lined up at the plant gates seeking employment the following day.
