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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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. 43 firm. At the same time the principle of Profit-sharing was intro duced by a scheme thus described in the prospectus issued prior to the formation of the company:—“ In order, however, to asso ciate capital and labour still more intimately, the founders of the company will recommend to the shareholders that whenever the divisible profits accruing from the business shall (after the usual reservation for redemption of capital and other legitimate allowances) exceed 10 per cent, on the capital embarked, all those employed by the company, whether as managers or agents at fixed salaries, or as workpeople, shall receive one-half of such excess profit as a bonus, to be distributed amongst them in pro portion to, and as a percentage upon, their respective earnings during the year in which such profits shall have accrued.” It was further arranged that the bonus received by those employees who took shares in the company should be at a higher rate than that received by those who did not hold shares, the former class receiving, on the first distribution of bonus, twice as much, on subsequent distributions half as much bonus again, as the latter. In 1872 the price of coal and the rate of colliers’ wages rose rapidly, the advances in wages granted to the miners being an increase in the aggregate of from 27 J to 30 per cent, upon their standard rate;* and it was thought proper to increase the minimum rate of interest on capital from 10 to 15 per cent. The first division of profits on the new basis was that for the year ending .1 une 30, 1873; and this basis was maintained during the rest of the period during which the profit-sharing scheme was in force. The total amount received by the employees as bonus was as follows: — Year ending June 30, 1866 9 9 9 9 9 9 9 9 9 9 9 9 9 9 99 1867 1868 1869 9 9 9 9 9 9 9 9 1871 1872 1873 1874 £ 1,800 2,700 3,150 3,462 1,740 1,745 5,250 14,256 6,048 Total £40,151 Thus, during the nine years covered by the Table, the average amount received as bonus was about £4,460 a year. What was the average ratio of bonus to wages during this period as a whole is not stated by the authorities consulted: the ratio for 1865-66 is, however, given as 10 per cent, in the case of shareholding and 5 per cent in the case of non-shareholding employees, and tire T . . T „„ 107a Hip advance in wages had increased to at It is asserted that by June, lbib, tne auvaiv s> p 7 /; u v least 50 per cent, on the original standard. {Co-opt* alive 1 loduuion, oy Benjamin Jones, p. 497)

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