PROFIT-SHARING BY MINERS.

Dominion, Volume 6, Issue 1726, 17 April 1913, Page 4

PROFIT-SHARING BY MINERS.

A SUCCESSFUL SCHEME. ' An interesting and successful scheme of profit-sharing has been in operation for six or seven years in Sardinian mines. Tho "wages" of capital, in the case of tho Sardinian mining scheme, have been fixed at 5 per cent., which cannot be regarded as excessive in view of tho hazardous nature of tho mining industry. This is paid qs a . preferential dividend. Workers must havo been four years in tho service beforo they can join tlia bonus-earning fraternity, and they must also insure themselves in. tho old-ago-national pension scheuio ; which requires a contribution of ono franc p)>r month. These limitations are sufficient''to ensure tho enrolment in tho scheme of tho better class and of steady workers; the pansion contribution is a sufficient barrier to tha inclusion of the indifferent worker, and tho required term of employment preparatory to participation has been reduced from fivo years, and may lie reduced still further to three years, but not beyond .this, as it is of tho essence of tho scheme that participants should havo proved their, ivorth as rcliablo workers. Such workmen are credited with a percentage on' their wage equivalent to any dividend above 5 per oeut, distributed to the shareholders, provided thero has been no strike dnrinp tnc year. This dividend is'not paid in cash, but is credited, in tho books of the company, and each worker has a book, in which is entered ovcry year tho rate and amount of tho bonus, the sum': added for the year, (lie amount of interest at tho rate oi' 5 per cent, per aunum ! . on- tho total standing to his credit. No money can bo withdrawn until the worker, leaves tho company's service. This is ti somewhat novel feature of tho scheme; and is regarded as of vital importance, as thero is tho greater incentive to work for tho continued prosperity of the l.usi-' ness. A further step towards labour co-' partnership was made last year, when it was decidcd that workmen who havo .£2O to their credit in tho bonus l'und should receivO) instead of a fixed rain oi interest of S per cent, per annum. His 'same rate of interest on their accumulated fund as tho rate of bonus in l!u> wag?*, with a minimum of 5 per cent. Tim-. if tho shareholders get 15 per cent., ilm workmon participating in the fund get 10 per cent, on their wages and 10 per cent. Oil tho money to their credit in their individual accounts. This interest is paid in cash, so that there is an incentive to accumulate capital in order to gain interest ou the capital invested iu tho fund, and nothing so conduces to contentment and steady work as such a permanent interest in tho concern. Although tho scheme lias ( lily been in operation a littlo over six years, many of tlift workers nro becoming small capitalists in the business, and cordial relations aro now maintained continuously between thn workers and the- employers.