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For these reasons, coupled with the fact that Grumman workers are the fourth highest paid in the U.S. aircraft industry, and are ruggedly individualistic Long Island clamdiggers, chicken farmers, etc., no union is making any serious attempt to organize Grumman. The company has never had a strike or a slowdown. It has handled the explosive race problem just as smoothly, now has some 600 Negroes in all types of jobs. Worker morale is so good that Grumman can always strain production in emergencies. When the Navy lost an unexpected number of planes on Guadalcanal, Swirbul rallied the workers on a weekend, to make up the deficit. Although production then was only three planes a day, they uncrated parts already packed for shipping and sweated out 23 planes in 24 hours.
The Payoff. Grumman is certain that his realism pays. The company has made money and paid dividends every year since it started. From its first year's sales if $110,000, the total swelled to $278,500,000 last year. On this, the company netted $6,598,200 after contract redetermination, including a postwar refund of "1,955,000. This year the company has turned out an estimated $156,000,000 in planes, including its new twin-engined fighter, the Tigercat, in the first six months. After renegotiation and taxes, Grumman expects to net a little more than last year. Roy Grumman, who owns 14% of the stock, collects a $65,000 salary, gets an-other $100,000 from the stock dividends ($1.50 a share). Swirbul is paid $60,000, collects $47,250 from his 6% stock interest.
The Navy is equally sure that Grumman's realism pays. Production per pound per man is the highest of any Navy plane contractor (in June it was 60% above the average for the entire aircraft industry). And the price of Grumman planes, less motors and other Government-furnished equipment, has come down to an estimated $33,500, about a third under the contract price (the company gets one-fifth of the saving, the Navy the rest).
Up Schedules. At war's end, if all U.S. plane contracts are canceled at one swoop, Grumman will have no choice but to "shut the doors" until he can find a market. But this contingency is remote. Grumman, with no cutbacks in the offing, this week goes back on a six-day week because of slightly increased schedules. And the shock of the end of the European war may be cushioned. The Navy may shift the bulk of plane contracts back to the old-line planemakers so that the automakers, et al., can get back to peacetime products.
Postwar Grumman has a large place in the Navy's plans. Only a month ago the Navy finished building a $4,000,000 engineering and experimental building at Bethpage, bringing their investment at Grumman to $29,000,000.
In the acres of floor space in the new red brick buildings, Bill Schwendler's engineers are already poring over drawing boards on new Navy projects, including plans for a revolutionary type of fighter. The Navy has piled on enough contracts to keep the staff busy for two years. The Navy does not know what kind of planes it will need in five years, nor how many it can then afford. But if the Navy can afford to keep only one plane company in business, that company will be Grumman.