Report on profit-sharing and labour co-partnership in the United Kingdom

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Monograph

Identifikator:: 1016336950

URN:: urn:nbn:de:zbw-retromon-27123

Document type:: Monograph

Title:: Report on profit-sharing and labour co-partnership in the United Kingdom

Place of publication:: London

Publisher:: His Majesty's Stationery Office

Year of publication:: 1912

Scope:: 1 Online-Ressource (160 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: II. Profit sharing and co-partnership in private firms and companies

Collection:: Economics Books

DETAILED ACCOUNT OE VARIOUS SCHEMES. 39 Profit-sharing Deposits. A type of Profit-sharing possessing much interest is that in which the right to participate in profits is made contingent upon the employee’s investing money with his employers, and takes the form of a rate of interest on the employees’ deposits varying with the profits of the business. A system of participation of this natux-e was, in 1866, introduced by the firm of Fox Brothers & Co. (converted in .1896 into a joint-stock company), of Wellington, Somerset. This firm of woollen manufacturers had for some time allowed its managers, foremen, and clerks to l'eceive a bonus calcu lated in part according to the year’s profits, in part according to the status of each. In 1866 they introduced a plan of receiving from their workpeople sums of money on deposit, to bear a rate of interest never less than 4J per cent, nor more than 10 per cent., but within these limits varying “ in accordance with a certain fixed scale based on profits, which has been prepared by Messrs. Fox Brothers and Co.” The firm undertakes to repay any sum up to £50 on seven days’ notice, above £50 on two months’ notice. The total number of persons at present employed is 1,561, of whom 239 (186 men and 53 women) are depositors under the scheme. The opinion of a member of this firm, Mr. Joseph H. Fox, in respect to the x’esults obtained by the system just described was set forth by him in a paper read in 1881 before the Social Science Associa tion ;* and in connection with the present inquiry he states that he does not think that the experience of the years that have passed since the paper was read has in any way modified the views therein expressed. After mentioning that the system had been thoroughly appre ciated by the workpeople, Mr. Fox continues : — “ Secondly.—There has been scarcely any trouble experienced in carry ing it out, and I am not aware that there has ever been any complaint made of the rate of interest given, although this has varied from 4-1 per cent, to 10 per cent., nor am I aware that it has ever been suggested that the rate of interest was unfair, or any wish expressed to know how it was calculated. The decision of the partners has in all cases been accepted without question. Thirdly.—It has on one or two occasions happened that, when a high rate of interest has been paid, applications for increased wages have followed, it no doubt being thought that as the'business had been pros perous, a better rate of wages could be afforded. “ Fourthly.—It is very difficult to form an opinion as to the effect pro duced on the carefulness and attention of the workpeople, and whether in this sense the scheme has answered. I believe it has in the case of many of the foremen and others in places of trust, but these have had, it must be remembered, an additional stimulus from their being partly paid in accordance with results. But with the ordinary workpeople there is not so much scope for showing interest, and as they nearly all work by the piece, it can produce but little effect on their industry. There are, of course, many ways by which economies may be effected—by the saving of material, by care of machinery, and in other ways; but it is very difficult to form a definite opinion as to the results of the scheme in this important respect. It must be borne in mind that in a manufacturing business the skill and judgment shown in the purchase of the raw material and the sale Transactions of Social Science Association, 1881, pp. 671-675.

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