Eastman believed that offering these benefits served the interests of the company. He feared labor unions and believed that offering better compensation than that received by union workers would deter union organizing and avoid the potential costs of a company strike. Selling his stock to employees would simultaneously make it more appealing to investors, who were wary to purchase shares because of his large stake, and lower the price of the stock, which would keep anti-trust lawyers from investigating the company. Because Kodak was a capital-intensive industry with a low labor-cost ratio, employee benefits contributed less to the company's expenses than they would in other industries.
Eastman believed that offering these benefits served the interests of the company He feared labor unions and believed that offering better compensation than that received by union workers would deter union organizing and avoid the potential costs of a company strike. Selling his stock to employees would simultaneously make it more appealing to investors, who were wary to purchase shares because of his large stake, and lower the price of the stock, which would keep anti-trust lawyers from investigating the company. Because Kodak was a capital-intensive industry with a low labor-cost ratio, employee benefits contributed less to the company's expenses than they would in other industries.