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

38 II.—-PRIVATE FIRMS AND COMPANIES. business—nevertheless it has undoubtedly called forth extra zeal, specially among the higher-grade employees, and has tended to greater stability of employment. But the happiest results of the scheme have been the harmonious relations sub sisting between the management and employees, and any thing in the nature of a strike has been unheard of during the company’s experience of Profit-sharing.” In the scheme last described, the part of the share in profits allotted to the employees, which is not paid out at once in cash, but is reserved to be used for their benefit later on, forms a Pro vident Fund, the benefits provided by which accrue to the partici pants collectively. In other cases the reserved bonus is credited to the account of each participant individually. As an example may be cited the scheme which has been in force since July, 1889, at the Hele Paper Works, Cullompton, where 223 persons are employed, of whom, on December 31, 1911, 157 were entitled to share in the profits of their employers (the Hele Paper Company, Limited). The rules of this scheme provide for the payment to the employees of a bonus dependent on the profits of the business, this arrangement conferring no legal claim, but the amount to be certified by an accountant. Tbe bonus is paid half-yearly, all the men and boys and some of the women in the employment of the firm during the half-year being allowed to participate; the total bonus is “ distributed among participants in the proportion of each worker’s wages to the whole wages of the mill.” One-half of a participant’s bonus is paid in cash, the other half being credited to him as a Provident Fund, on which interest at 5 per cent, per annum is allowed half-yearly; the part payable in cash may, at the option of the participant, be left with the firm on deposit at similar interest. The Provident Fund of an employee may be drawn out when he attains the age of 70, or completes 25 years’ continuous service; if he dies, his representatives get the amount at once. If he quits the service of the firm, provision is made for his getting his Provident Fund promptly. The rules of the scheme provide that the sums credited to the Provident Fund may either be left on deposit with the firm or may be placed in a savings bank; as a matter of fact the former course has been adopted in all cases. The permission given to the employees'to deposit their cash bonus has been taken advantage of to a con siderable extent. There is at present on deposit with the com pany a sum of £2,244, belonging to 158 of their employees, and representing partly Provident Fund, partly cash left on deposit. In addition, two of their employees own preference shares of the company to the (nominal) amount of £170: these shares are 5 per cent, cumulative, issued at par, not conferring the right to attend meetings of shareholders. As to the results obtained by Profit-sharing in this case, the company writes:— 1 ' We have no wish to discontinue our Profit- sharing scheme, as there are advantages attached to it'; but we cannot say that it has had any great effect on the zeal of the employees. The relations between ourselves and our employees always have been and continue to be harmonious.”

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