PROFIT-SHARING SCHEMES

Manawatu Times, Volume XLIX, Issue 3308, 30 March 1926, Page 3

PROFIT-SHARING SCHEMES

HELPING WORKMEN TO BU/ SHARES. In a lengthy article in the ‘Quarterly Review,’ on ‘Profit Sharing and Share' purchase for Employees,’ Hr. Howard W. Hazel makes a practical suggestion to the big companies and employers who may desire to secure goodwill and welfare of their workers by the adoption of a profit-shar-ing scheme. “Working men. and women do not understand the usual methods or buying shares and dealing with stocitbrokers, but they are accustomed to regular weekly deductions irom tncir wages,” says Mr. Hcwsrd Hazel. f The shares when originally issued could be purchased tor cash, or subscribed for by weekly deductions from the wages of 3d or 6d per share. “Employees paying cash would have their shares allotted at once, but« those paying by instalments would only receive dividends, woe:; the payments were completed.

“As a sot-off against the interest on the accumulating instalments, it could be arranged that should a subscriber die before his instalments are completed the company would make «• gift to his heirs of the uncompleted balance of his payments, and the shares would be issued to his heir, it an employee, or sold for his heir’s benefit, if he were not employed by the company. Experience has proved that this financial risk is very small, and the offer is an added inducement to the employees to subscribe. “The amount of new capital that is issued by a scheme of this kind is under th# control o± the directors, and'they can allocate the shares to any employees they select. It is probable that no large amount would be taken up at one time, but when the scheme is established, and the employees have been receiving dividends they would be anxious to take up mor e shares, as their wages and home responsibilities would vary. "Some men spend all they receive, while others —aided by a good housewife —can and do save money. The possession of an imposing share certificate and the right to attend the annual meetings of the company add to the employee’s position and sense of responsibility. An employees’ share scheme of this land encourages the invaluable qualities of thrift and self-reliance, assists a worker to make provisions for the future, ana brings to him a sum of ready money if he should lose his job, and at a time when be is mest in need of it.

“The most important thing in founding any schemes is th e spirit and the ideal which actuate the employers. If they be actuated by me generous ideal to find some reasonable method of sharing their prosperity with their employees, to give to thin some income over and anove Itheir standard wages when the proms will permit them to do so. they will find their reward. “The employees will appreciate tno offer made to them . ,and will vaiue thir position with the firm still more. When (they find that their income depends partly upon the success of tne business, they will naturally strive to increase’ its efficiency, to prevent loss and waste of all kinds,and to reauce the costs of production. “Profit-sharing is not a panacea for ill the difficulties and problems mat face modern industry. It Is, however, a means of bridging in some degrees the gap that so often separates Capital and Labor, employer and employee. It can introduce co-operation where antagonism may exist co-op-eration to attain greater efficiency, and -give better service to the customer and th e community who require the goods produced or the services that may bo rendered.

“The world is crying out for lower costs, which can be obtained by hlgncr efficiency. Therefore, when pront sharing is successfully established, the three parties interested in ftl! industries, the employer, the employee, and the consumer, will each benefit in various ways.”