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This article uses a case study of an Ontario factory manufacturing clocks and watches to explore the way in which industrial paternalism was used as an industrial relations strategy by both management and workers. Paternalism, in this case an amalgam of 19th-century traditional paternalism and 20th-century welfare capitalism, was premised on unequal economic relations, and on the ideological hegemony of management, but it was also and more importantly a negotiated process in which workers participated in order to secure better working conditions and wages, respect, and dignity.