CO-PARTNERSHIP.

Dominion, Volume 3, Issue 733, 4 February 1910, Page 6

CO-PARTNERSHIP.

INTERESTING RESULTS.

A MEANS OF INDUSTRIAL PEACE. .The remarks on profit-sharing 'made by Mr. W. Ferguson; at the' annual meeting of the Wellington Gas Company derive additional.interert from the. fact that schemes: such as.he probably has' in 'contemplation have been in'successful operation for 'many years in \ some of the. latest gas companies in-England. These systems go beyond profit-sharing, properly so-called, and should rather be described as' co-partnership. ' The. movement '" of which they are; the fruit owes much of its' success : to • the late' Sir George Livesey,- chairman of 'the South- Metropolitan Gas Company. -.. It was the great gas strike of 1889 that 'caused him to turn 'to co-partnership ••'as'.a" means' of putting the /relations , of capital and labour upon a surer and more satisfactory basis by the establishment of mutual confidence and-unity, of .interest. f Improved Relations. • •

.Speaking in June, 1908, he said:. "Partnership is the only sure "and cer-tain'-settleinent ,of ■ the capital' and labour question. There, is nothing else.: Why do I speak so confidently? I admit that my nineteen years' .'practical 'experience of co-partnership, although it. is; a large part of a man's , life,. is a. very small period in "the .development , of a - great prinoiple. It may therefore be said that this, confident statement is premature'.. 1 Much,, however, may be proved in nine; teen years , : (or. 56 years if the total of the five co-partnership''gas companies be taken); and when I say that from the first and', all, through .'there has \ been striking' 1 and constant improvement ',in 'the relationship ':of. employers and employed; that the interest of the employed in the company becomes, , year by. year, as' their holding' of stock increases, .per' .ceptibly; .better; ' that 'during ..the whole time there.has been nothing whatever/in the nature of a' set-back.or a check; that on the extreipeiy rare occasions when an individual !here and there, thinks he.iha's. a grievance there: has never, been any difficulty in , settling it satisfactorily—l feel justified- in ~ saying ;, the . principle, -is right, and ; that- in' co-partnership is found the fulfilment, of . Mazzini's -' prophecy, and that' the prophet /was right wlie'n! he said the labourer - must ultimately .become a partner." . Encouragement of Thrift.

, The introduction of the scheme was opposed by the men.s unions, but; after, a' ■ short.' and' shatp struggle,, which;, however, cost ;■the company .£IOO,OOO, opposi.tion .Iras overcome. ; In' the year 1906 the shareholders heard 'from -' him "the gratifying announcement; that the vious '. - year's, bonus ( was. the'. highest' on .record—9J per- cent.- on salaries and wages, equivalent to the' oost.-of • working the scheine' a year) being borne by i the. company. '; He constantly urged ' the employees' not to regard their bonuses-' as part of their ordinary, income, but to save and reinvest the money in; the company, or in buying a house, ', or otherwise. _ .With. * such encouragement iriaiiy' thriftless men-became prosperous co-partners. :• '■- -.. '. , ; ■ ; Workmen as Directors. •' ' The!, five "co-partnership ..gas companies mentioned : by Sir,: George; Livesey," as above," were >•: the ■ South'. -Metropolitan, Commercial,.'. South'. Suburban, .'Chelsea, and"Newport/ Others have-since-adopted the . systerii, including the Leamington, . Eugb'y,; W iilker:. arid: Wallsend,. and' Wreihaul, and others..- .. ; . ■;/ ~ , In".',the';sanie'/'adiiress he/laid down the general principle, that'• 'the ' partnership must 'be', complete,':' apd , must .include', all employes .whti' arfe worthy; ~ .Official's aJi'd wprkriien! must. all be' -in the - sime. boat An agreement should .be. offered to everyone in regular .employment, .. Afteirwards any employees,'who , ; were . indifferent! '.or careless or." took. no! interest,. in; their work; must be.'told that, unless theyiimproved,! their agreements would not bo renewed. ..Wprkmen as members ,- of the directorate; were a. feature of his system..;;,',;''..,',;.,,;'.': '

Sharing .< Loss as Well as; Profit. ' ; In another' speech, Sir George! Livesey answered.. ;an argument which,.>; is frequently : heard'. when;' ;profit-shar-in'g or ' 00-partnership' schemes V' are under disoussion. ,:. He . .'.... said:— Iti was 1 : of '.'- the;" essence of- copartnership that ■ all;i should - share and - share alike; It had constantly' been' said that under profit-sharing - schemes the . profits , were shared; but not "the losses. Under '.their co-partnership'. 6ystein', "they did share losses. In-the South' Metropolitan Coiiif pany,' the bonus'was' reduced' from 5, per cent, to 3 per cent, in the'; early - nineties; and '.in '1900 it was reduced 1 ' from 9 per ; cent. ■ to' nil, "for 'six' months, the. workmen-; were fully • informed, and : ''not a word ,of discontent was uttered.' The bonus then wont to 33 per cent.' In' the case .of the ; South Gas'Company,'it .came down from'--.6} to 2 per cent; . Now,-how: did the_ men take ;it? They: took .it as the shareholders did— with' perfeot; equanimity. <It was ?explaiiied 'to them why-it was'; ahd they said; they must take the rough- with the smooth-.

A DIFFICULT PROBLEM. VIEWS OF ME. CARROLL. Hr.' Samuel Carroll, : secretary of, the Chamber of , Commerce, holds'.the belief that ; some , ;f6nn ,of ' profit-sharing should prove the curing; the/ troubles: that afflict ' the. industrial, world: Tho cxact'.basis, on . which such ; sharing'; of profit coiild be . arranged would, , he ad- : wits, be -.difficult to '.devisej'but,' there' is ' little .doubt that more, industry would bo displayed' by workers if they knew they were'.'to'.participate' in : profits. ( ''lh: his younger, day's Mr. Carroll 'spent' some! time iin ,' the - Philippines, and the mention of "pr ofit-sharing .'and. its on :labour'..'was. .brought' forcibly.-to' . his/ mind v by the recollection of'an experience he had .'in ;the: .country, near. Manila. -

"I was' being shown over two plantations '.that'-'adjoined' one another, .' said. Mr. .Carroll, '.'one owned, by a Spaniard who ''.'employed ; native '■labour, and ." - the other,-that .was being worked. by-Chinese.. I could 'not help .noticing, the apathy 'and listlessnoss .which-characterised .the work ■ on '■ the ''■ Spaniard's'plantation;. compared;' with .the'energy' displayed' by ; the Chinamen. I made a . remark about this , arid 'my/ friend; 'who knew, the country.: and: its ways, said the explanation was '.very, simple... Every,-Chinaman that , was employed on' the. one plantation had a. personal interest in the plantation, whereas the -otherwas owned .'and worked 'solely by,the Spaniard.' That,.l take.it, was an illustration, of what; sharing profiis; could do. '.I admit the difficulties. / The great, one,,, of- course;:is that, whilst the .worker is, willing' to 'share. ..the • profits, ;he' would'-not be' brought : to : see that.in 'all fairness he shouHi'share: the losses';: and .haying, got used to .receiving piofits in years,; he',"would, in' allprobability, take .up quite a'' different attitudo in bad years.,,;,lf . a firm could always abs[> lately rely oh returning sufficient profits .to warrant a; division among : the " em-' ' ployees ! iill would be well,' but where was the ; business in, that position? Perhaps some arrangement might be made in some'-'instances ; for the; setting aside of a proportion of the. employees'' profits as a fund- -to be ; drawn upon in years' when profits were small, non-existent,' or. 'where a' loss had been made, .but on 'experience -could employers depend on the,loyalty of • workers in slump, times,, even if profits were shared in fat years?