hokitika Guardian & Evening Star WEDNESDAY, JUNE 23rd, 1920. INDUSTRIAL CO-PARTNERSHIP.

Hokitika Guardian, 23 June 1920, Page 2

hokitika Guardian & Evening Star WEDNESDAY, JUNE 23rd, 1920. INDUSTRIAL CO-PARTNERSHIP.

Entitled “'Profit Sharing and Labour Co-Partnership in the United Kingdom,” a report has recently been prepared by the Ministry of Labour which gives interesting information regarding the progress of profit sharing in in dustry in-the United Kingdom. “Profit sharing” is defined as being an agreement between ah employer and hi: employees, whereby the latter receive, in addition to their wages or salaries, a share, fixed beforehand, in the profits of the undertaking, and for the term “Labour co-partnership” the definition involves, in addition to ordinary profit sharing, (1) file possession of shares in .the undertaking by which the workman is employed, and (2) the establishment of a co-partnership committee for workers having a voice in the inter nal management of the undertaking. On October 31st., 1919, the number of schemes in existence, so far as-reported to the Ministry of Labour was 1 82. the number of persons employed by those firms having these schemes being about 250.000. These schemes were tile survivors of 380 schemes which find been started since 1865, with an isolated example in T 829. The report further points out that the greatest activity in the formation of profit sinning schemes was shown from 1889 to ■1895, while, on the other hand, the period from 1893 to 1907 was a period

of stagnation. The causes that have led to the abandonment of the many schemes which have ceased to exist are referred to, and it is pointed out ’hat the chief cause of the lack of success

is attributed to’ the dissatisfaction or the employers or employees. The largo number of existing schemes of various types are discussed in detail and it is stated that the gas industry iB r.lie

only one that has adopted profit sharing or co-partnership on anything approaehl iiig a national scale. In all other groups of industries only a very small minority of firms have adopted the system. As' to the pecuniary results of profit sharing, these, appear in many 'cases, and as tested by the amount of bonus paid to bo “ not inconsiderable, it being estimated that the average bonus over a long series of years may be put at about 5 or G per cent., th* equivalent of two or three weeks' wages. The total amount of bonus nai.l in 1918, in 105 schemes was £299,72S the participants numbering £52,056. ’