PROFIT SHARING.

Hawke's Bay Tribune, Volume I, Issue 276, 10 November 1911, Page 3

PROFIT SHARING.

BRITISH j’K j:i:k. 1.1 IK¥ Wt 11)!.[.} \ V. ( HIRERS. , G'HHN METHOD USED IN ’ EX GLAND. i Mr. rh<*o<)ore lay lor. a member of ’l.*- tbpi'h JJi.i-- of < ’o;aiiio:i>-. ami ■ r.e head of a big firm of woollen manufa'-i urers, v. ho m a: pre-cut visiting fiydncy. is a Ir-.-riimr < xpott p l-t of the pr;m ii-li- of profit Miar i'lg. V. hmh he ma <>:.!y preaches. Lilt pia-tises in hl, 0.-.i| !>■; .|||"‘s. ettl pi-iying I 100 work people. i Ilium'll not suflirmmt !y arquaiiili'd 'i'll conditions in Austraha vet to . miv him far the principle would apply here, he says that, as human fiatlire ill.c ‘atm- everywhere, lie cannot but boln-ve i hat -<>iiii' form of i’ v.odd answer in tin- < ’•■iiiiihiii •vvirthh. as eih-r -. ami lie has ; alreail'. lii-cn inturiiied that two firms here are sec-j’ly pi act is iujr it. though for some reason they i i:> not ilisire their names made i known. > "One of the r.-asoiis that, bring me . to Au:t rtilia,' he said in an inter- ’ vi-v. with the Swliiei "Morning Herald” last week, "is that I may <t.i<;y your la'.o ir conditions on the spot. Th.- h-gi-flat ures <>f Austra 1-is-a ha-.r gon - muih farther than rinse in any oth'-r '•.eiutry. and we iti England, who mak ■ a st tidy of . so-in! economics, are watching the • course of things i>i Australia and > Xew Zealand with the deepest in i terest. Our Wages Board law passed ■ two years ago relates only to a limit'd number of industries. ;.ml is be ■ ing applied with great and. I believe, some success. Ly the boards thus far set up. At Hom • there is a genera! d‘--ire to establish labour conditions, not only mom permanent in their e’iarait»-r. bat iiuee favour able to the worker . than those which at present prevail .and 1 have not the least doubt that out of the rec lent railway trouble will come a con sider-ioh- improvement in tin- lot of the umlerpaid railway men. 1 fancy. m>j;eo-.'-r. that tie- tr.elides will help ■m th” ca-.se of th- i-at :>>milis.atioii of th - British and Iri .)■ railway-. REWARDING THE WORKERS. ‘ (’timing to th-- wider tptestioii of th.- relations l„tw -.-n private em ploveis ami i-ompati.es and their ein ; plovers, much unrest admittedly exists. It is caused partly by tinhigher cost of living, resulting from the recent increased production of gold and economi-s in its use. But it largely originates ah > in the natural desire of the mam for a greater diare of the wealth now enjoyed by the < omparativ c!y few. I have long held that wise statesmanship. as well a' <a sens,. ( ,f justice, should dispose iniplovers generally to recognise this bv some form of i profit-sharing. It is. of course, well known that Sir William Lever adopted this principle some two years ago. It lias existed in Fram e for two gent rations past, and win-re tried un-d-r fair condition- ias In-ni uni formly Mi-cci.-f.il. Ti e most strikingexample- are afforded I>y large Bri tisli gas com; ani-s. led in the first iastalii- • by Sir George Livesey. ' chairman of the South Metropolitan Company, which for mi’ii" Io years' was the ouiy one io practise the principle. This company s example, however, his of Late v ars been fol i lowed by 2) or others in Great • Britain, and in that industry the' pl iiu-iple ills wi-)|..,i; a do.hit been ftrrnh and pi-rmalie’llly cstablisheil. . HOW THE SCHEME OPERATES.,

"In my own r i-e 1 liuti- all inx : adult l : fi had a di t<> ;> :l the prill- j , t :ple into pr.’irti'e. The opport unit v j i e'liiic t r i I>1)2. whi n. Lt the death mm i I n tin nit t of other partners. I be-| imine the hi .id of a large woollen j i numtifai-:tiring bnunej-.s at Ballet, in j Vork-hire. I adopted with modifii-a- i i t ■i::' what it right to i .ill the God- I ■ in method, a - pr.u t >i d l>\ tiie largo, firm leartig th.n name at Gui'c. nt ■ 1 l-ratii e. Mt -.'1,. :n<- applii ' to the 1 ; in t profit' of < ti i_. fitiam i.i I 1 1 .tr. 1 A'!- r the t car's ixp-:i-c- .'re paid., 1 and propi r d< pi c c :at ;<-:i n i-knlii >1 i I upon all wasting a.'sel'. interest j i upon cap:t.-’.l a! the rille of ■> per cent. 1 ■ is the first charge upon such profit as ; . the t ear's lia! inec-shi-et shows. I Af-ir that cap.tai ::'l-i labour m.ch ' p.' > t: -ipa:, - at. the i'lie rate per ■ i . That is to - it. the d;t ide nd i< , afip-'i Hom d to ti<e total capital and :i.e t. ;.i! mnoniit pa.d fur labour dur- [ ing the year on an equal footing. I The z'l-a is ti.it a- the ii?-t charge 1 upon the Ini'inc-- i- for labour, paid [ p-ri'i.i'.eallt dur.ng ti.e tear, so t'f.s next charge is simple interest on the i wages of capital, and that thereafter [ labour and capital should be regarded as tnting a cominon « kuni upon the profits.” Mr. Tath.r . it.d an i.i-i r.lt- c. ' "Take.” lie said, "a business i m- j plot tig. -at Li2>>.e;i i cap.t il. and paving. ‘Ji. t’.'i.uon in wage- and . salaries dining rhe .war. Let u< suppose the net profi's to be divided in a given tea; amount £!6.<n*>. I'xteiir my scheme the first charge uj'Oii these profit.' wouid be £6ihiotiial is. 5 per cent, interest i.n the i capital of 12".0i'". For the purpose of further d:~t r'Lt:: the Ou.ooo paid during the j i ai- in wages would lie added t > the £!2<>. making a • total of £2iliver tv inch ti<c re mai.ting pin!’:- would be dist: *1 a* a liomrs. : i'h :.i <* : 5 p> r , • ■ent., .-im: a ft:rthi r cividemi to cap: t.i> of .*> per c-itt. In that vi ttr. there- I fore, lali-mr would n’l-etvr wages, j .•im: 5 p. r e nt. Im.-.iis in addition, ami eip:tai v, onld rrciivc a t*r.al ol In pi r nt. If the profit were only e»; .'in, capital would get only per ci'-tit.. and labour nothing lieynmi wages. If. <av. (TliJiiio were the profit. divid' d, capital would gi t 2<) p< r ■ <-eni.. and Lilmiir 15 jn r i-ciit.. in ad ; iii: ;.>:i to wages. That is. laLour gets tlte •amt' dividend ia addition to wages tli.it capita! get.* in additiuti to ititere't. TIKHIOf GII SU< i ESS. ' f . al! who imve b. eti m ■ c . m ph-; : ;.i- whole vi';:) we | -ay tint- lal'-mr in>:,um >v 'bares- i:i tl.e i oinpativ. pu.l m Th.- l A.-.-u lemc.- p;:v •el 'i'.l"?". < '■ ] k v. tin La vi- not bc-.-n th" wii'-b - ;.ear iu ‘,’iir i inplov

- pi irr-il lo tin- -rrdq of a workers’ ; » :ii fit fund, ami strictly devoted in various way - to the benefit oi the

mployees

"The workers' shares do not carry -ontrol of tiie business, but. in re'pcet < f dividends, anti in case of winding up ilie (i riipany. hive the -arne financial rights as my own.

"I began over I:' vt ars ago with !i>- uiaii.iui is of the business, then the foieman. ami soon cxtindcd tiie rheme to all our workers. Only

Eo.-e in t:ie i mploy of tiie company a-i iiohl our shares, sc that when a man wants to sell his shares he must tispose of them to some other tinployce. A small minority of our workers made a practice of selling th< ir shares as soon as they got them. Time years ago we stopped tiiat pr.ic; :<-e, and at the same time began io give double bonus to till those who had been live yt ars in the employ cj .h" rotnpany. were 21 years of age, o:d had retained shares to the ex-' -.int of half a year's wages. Of our 1110 workpeople I lot) have been -ban holder-- for ytar- past. The -chemc has been a thorough succ.-ss. wd though i may or may not be so rich as 1 should otherwise have been. I feel that, in respect of those things that are worth greater than money. I 'riave been a great gainer.”