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:: IV. Conversion of ordinary businesses into co-operative societies

Collection:: Economics Books

92 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. J rate of per cent, on their wages. In 1896 no bonus was paid, the profits of the preceding year not having been sufficient to permit of such payment. The only other available information in regard to this Society is that in November, 1897, the share holders passed a resolution to go into voluntary liquidation in consequence of its not being able to meet its liabilities. HASLEMERE BUILDERS, LTD. The third of the cases in which an ordinary non-co-operative business has been converted into a Co-operative Society is note worthy in this respect that, prior to this conversion, the employer in question (Mr. Herbert Hutchinson, architect and builder, of Haslemere, Surrey, employing some 150 persons) had for some time had in operation a scheme of Profit-sharing, his employees sharing in the profits of the business, but not owning any part of the capital. The profit-sharing scheme provided that, as from January 1, 1897, the surplus of the gross profits, after paying wages and salaries, including salaries of managers and principal, and the cost of materials, rent, taxes, insurance, office and travelling expenses, depreciation of plant and other out goings, should be distributed as follows: —(1) A sum equal to 4 per cent, of the total outgoings in those jobs which should be executed by the firm without the superintendence of another architect, and 80 per cent, of the commission for work surveyed or designed, but not executed, by the firm, and for all agencywork, should be divided (in proportions to be agreed between them) be tween the principal and the two managers by way of extra salary; {2) interest at a specified rate; and (3) a sum equivalent to 3£ per cent, of the total outgoings was to be divided between the principal and managers by way of extra salary. The balance was to form a Bonus Fund, part of which (88 per cent.) was to be distributed in cash, the rest (12 per cent.) being carried to a Provident Fund for the benefit of the employees; but in no case, unless one or both of the posts of managers should be in abeyance, was the principal to take any share in the Bonus Fund. The cash part of the Bonus Fund was to be divided in the follow ing proportions : —30 per cent, was to go to the managers, 8 per cent, to the foremen, and 50 per cent, to the clerks and workmen, being distributed (save in the case of piece-workers and sub-con- tractors and their men) in proportion to their wages earned during the year. The accounts of the firm were to be audited and the division of profits certified by a chartered accountant. In 1898 the employees received a bonus (cash bonus plus sum credited to Provident Fund) equivalent to 91 per cent, on their salaries and wages, but no distribution of bonus took place in 1899 or in 1900; in 1901 46 employees received a share in the profits earned in 1900 equivalent to a little over 1 per cent, on their wages. Mr. Hutchinson found the results of the profit-sharing arrangements “most discouraging.” He attributed the unsuc cessful financial results of the business to the want of energy and carefulness displayed by his workmen generally (especially on

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