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

ANALYSIS OF SCHEMES NOW IN FORCE. 17 24548 B Determination of Bonus Fund. In tlie majority of cases the total amount allotted for distribu tion among the employees as bonus is a fixed proportion of the profits; hut in a small number of cases( a ) participation stops at a certain point, beyond which the claims of the employees cease. In some cases( b ) the amount available for the payment of bonus is not a proportion of the profits, but a sum contingent upon a certain rate of profit being earned by the business: this sum is in some cases(°) a fixed percentage on wages (varying in one instance (No. 18) according to the amount of profits, and in another (No. 116) according to the length of service of the parti cipants), and in others( d ) an amount ascending with the rate of profit earned. In one instance (No. 122) a sum of money sufficient to buy a fixed number of shares in the undertaking is apportioned to selected employees. With profit-sharing gas companies, the bonus varies with the price of gas according to a fixed scale, rising as the price falls, and falling as the price rises. These companies are by law allowed to increase their dividends beyond a certain point only in proportion to a reduction in the price charged by them for gas. It follows that a rise of bonus is always accompanied by an increase of dividend, and may therefore be regarded as an indica tion of increased profits, though it is not based (as in other systems) on a direct distribution of profits. The Divisible Profits. The profits taken into account for the purpose of ascertaining the amount available for distribution as bonus are almost in variably the profits earned by the undertaking^) to which the scheme applies in the year, or in a certain number of cases( f ) the half-year, preceding the distribution, which takes place usually once a year, but in some cases( s ) half-yearly, or even quarterly^) or monthly.^) The profits in the case of No. 16, however, are taken from the average results for several years; while firm No. 35 reserves to itself the right to carry forward an amount of undivided bonus with a view “ to average good and bad years.” The divisible profits for the purposes of the profit-sharing scheme are usually declared to be the clear or net profits—that is to say, the gross profits after deduction of rent, taxes, rates, wages, salaries, and other working expenses. In joint stock com- (*) Nos. 2, 8, 22, 44, 51, 78, 116. ( b ) Nos. 18, 28, 44, 46, 59, 75, 106, 116, 122, and one anonymous case. (°) Nos. 18, 28, 46, 116, and one anonymous case. ( d ) Nos. 44, 75, 106 ; in the case of No. 106 the amount credited to employees as bonus must not exceed the amount represented by a 10 per cent, dividend to shareholders. (°) the business as a whole ; in one case (No. 35), however, the profits taken into account are those of a particular department, while in another (No. 60)—confined to working foremen—they are estimated for each job which the participant has had charge of. (*) Nos. 10, 20, 41, 50, 102, 109, and one anonymous case. ( B ) Nos. 11, 13, 17, 26, 32, 59, 92, in addition to cases noted under (*) ( h ) Nos. 23, 45, 92. Q For No. 92 distribution may bo monthly, quarterly, or half-yearly, as may be found most convenient for different classes of recipients.

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