PROFIT SHARING

Taranaki Herald, Volume LIX, Issue 143647, 15 November 1911, Page 3

PROFIT SHARING

Mr. Theodore Taylor, a member of tho British House of Commons, who is in Sydney, has been telling a representative’ of tho Sydney Morning Herald that tho system of profit sharing which is boing practised by some large firms of employers in Groat Britain is proving exceedingly useful. Mr. Taylor is the head of a woollen company which employs 1400 workers, and was tho pioneer of England of tho industrial system which he advocates. He became managing director of tho firm, which belongs to Batlcy, in Yorkshire, in 1892, and ho immediately adopted what is known as the Godin method of profit sharing. He states that the scheme applies to the net profits of every financial year. After tho year's expenses have been paid and » proper allowance has been made for depreciation of all ’‘wasting assets,” interest on capital at the rate of 5 per cent, is charged against the profits. ‘‘After that,” Mr. Taylor states, '‘capital and labour participate at tho same rate per cent. Tho dividend is apportioned to the total capital and tho total amount pair! for labour during the year on an equal footing. The idea is that as tho first charge upon the business is for labour, paid periodically during the year, so that tho next charge is simple interest on the wages of capital, and thereafter labour and capital should bo regarded as having a common claim upon tho profits.” To all workers who have been in tho employ of the firm during the whole year the labour bonus is paid in new shares in the concern and the future dividends on those shares are paid in cash. The labour bonus payable to persons who have not been in the employ for the whole year is placed to the credit of a workers’ fund and strictly devoted in various ways to benefiting the employees. Tho workers’ shares do not ’ carry control of tho business, but they have tho same value ns the shares of the proprietors in earning dividends and the same rights in the event of tho company being wound up. Mr. Taylor says that the system is appreciated very highly by tho employers.