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APPENDIX F: APPENDIX G.

Some Alternative Rules.

An alternative “ Method of Profit-sharing ” found to be preferable in
some cases, e.g., with rapidly growing businesses. The actual percentage
can, if desired, be communicated confidentially to a chartered accountant;
but in such a case it would be advisable to give the employees some
intimation of the addition to ordinary wages it will be possible for them
to earn.

(1.) In lieu of Rules 1 and 2 above:—Prom and after the 1st of
January, 1890 per cent, of the clear profits of the business will be
distributed gratuitously as a bonus to the employees in the manner defined
by these rules.

An alternative “ Method of Distribution,” suitable to businesses in
which the majority of the employees are piece-workers.

(6.) In lieu of Rule 6 above:—The employees’ share of profits accruing
in each financial year is (subject as after mentioned) to be distributed
among them in proportion to the respective salaries or wages earned by
them during such year.

If this alternative rule he adopted, the last clause in the first sentenoe
of Rule 8 above (commencing “ in proportion to ”) should be omitted.

APPENDIX Gr.

RULES OF THE PROFIT-SHARING SCHEME FORMERLY IN

force with Messrs. Thomas Bushill and Sons,
Manufacturing Stationers, Coventry ; Cash Bonus
and Provident Fund.* (Reprinted from Profit-sharing
and the Labour Question, by T. VV. Bushill, pp. 206-212.)

(1.) Method of Profit-sharing.—From and after the 1st of September,
1888, the surplus (if any) of the clear profits of the business beyond such
definite sum as is for the time being reserved to the firm for their own
benefit (herein-after referred to as the “ reserved limit ”) shall be
divided into two equal parts, one thereof to be distributed gratuitously
as a bonus to the employees in the manner defined by these rules, and the
other to be retained by the firm.

(2.) The “ Reserved Limit.”—The present reserved limit has been com-
municated confidentially to Mr. Charles J. Angus, 43, Finsbury Circus,
London, E.C., Chartered Accountant, and will not be altered for the first
three years if the scheme so long subsists. Thereafter it may be raised
or reduced by the firm, but (unless altered during some month of Sep-
tember) not so as to affect the distribution of profits for the financial
year current at the time of the alteration. Notice of any alteration will
be given to the employees in such manner as to let them know how far
such alteration would have affected the last preceding distribution had it
then been in force.

(3.) Accountant’s Certificate.—-The amount (if any) available for dis-
tribution will each year be certified by a chartered accountant and will
be communicated to the employees.

(4.) Qualifications for Profit-sharing.—The employees entitled to share
in the profits for any financial year are such only as at the commencement
of such year on the 1st day of September were members of the sick club,
and have on or before that date delivered to the firm’s cashier for the time
being a certificate or other satisfactory evidence of age, and a request to
be entered on the list of profit-sharers.

(5.) Duration of Scheme.—The scheme is to continue in force only
until the firm give notice to the employees putting an end thereto; but

* The firm (now T. Bushill & Sons, Ltd.) subsequently wished to transfer the Provident
Fund to the National Debt Commissioners. The Commissioners, however, were unable to
accept it as a trust fund, and the firm consequently decided to discontinue the fund and
pay the whole bonus in cash.