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 OF VARIOUS SCHEMES. 37 the company, any balance of profit remaining will be divided into two parts, of which one-half shall belong to the ordinary share holders, and go to augment their dividend, and the other half shall belong to the total wages fund of the workpeople, clerks, and other employees of the company, excepting such as are paid wholly or in part by commission.” The company’s accounts ai’e audited by a professional accountant. Each employee who has been at least twelve months in the company’s service previous to the annual distribution is entitled to participate, and shares in proportion to the amount of wages earned (in the proportion that the sums paid to him or her in wages or salary bears to the total sum paid in wages and salaries during the year). The bonus is paid in cash. A certain number of employees each year are, of course, not entitled to participate owing to not having com pleted the qualifying period of twelve months’ service; and a sum is set aside representing what would have been paid to such employees had they possessed the necessary qualification, and is carried to a Provident Fund for the benefit of the employees. The balance yearly remaining to the credit of this fund is invested (under the control of the directors) in the company’s debentures and preference shares, and forms the nucleus of a superannuation fund. All the benefits provided by the scheme are declared to be a free gift only, no right being conferred upon any person. The company employs from 2,500 to 2,900 persons, of whom, at December 31, 1911, 1,995 were entitled to share in profits. The addition made to wages and salaries by the bonuses paid in 1891-1912 inclusive has averaged 11'9 per cent. The total amount of the bonus allotted in favour of the employees in these 22 years is ,£172,025. The benefits provided by means of the Provident Fund are (a) the payment of two- tliirds of their wages for six weeks to employees who fall ill; (&),the payment of £5 to the representatives of a deceased em ployee; (c) the payment of £5 to women who, after being five year's in the company’s service, get married; (d) the gradual accumulation of a Superannuation Fund. The amount now standing to the credit of this Superannuation Fund, which will be for the benefit of all employees who have been 25 years in the service of the firm, and will come into operation in 1915, is over £37,000, invested in the company’s debentures and fully-paid preference shares. With regard to investments by the employees individually, the company states that the acquiring of shares in the business by employees has not developed as a feature, and the employees’ hold ing as regards both voting power and capital is negligible.* In reply to the question addressed to them in the present inquiry as to the results obtained by the adoption of Profit-sharing, the Company has sent the following observations: — “ The directors of the company are generally satisfied with the results of their scheme. Though all that was expected of it has not been realised—mainly because the most of the employees are young girls, whose main ambition is marriage, and consequently take no great permanent interest in the * On this point, see remarks of one of the company’s managing directors on Pp. 11 and 12.

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