PROFIT-SHARING SCHEMES.

Taranaki Daily News, 24 August 1920, Page 6

PROFIT-SHARING SCHEMES.

» LABOUR LEADER'S CRITISM The objections raised by organised Labour to systems of profit-sharing were dealt with by -Mr T. Bloodworth in an address before members of the Society of Accountants at Auckland recently. 3lr. S. 0 Chambers presided over a good attendance. Mr Bloodworth said profit-shar-ing was a suggestion as old as the industrial evils it was supposed to remedy. The primary cause of the evils of capitalism was the separation of Labour and Capital. There was legitimate capital used in industry but a iarge amount of the accumulated capital owned by the employers represented the unpaid wages of former workmen, Trades unions were opposed to profitsharing schemes because they tended to weakep unionism and divide the workers, and also because they tended to prolong the system of production for profit. Labour advocated the institution of a system of production fbr use. Although labour unions had been charged with leaving out . the great third party —the general public—profit-sharing left out all except the workers. Owners and workers might combine to share the profits arid raise the prices of commodities, so that those sections of the community which could not participate would find their purchasing power was reduced for the benefit of othT sections. Profit-sharing was not applicable to small businesses such as the majority in New Zealand. The 'real object of the scheme was merely to put capital on a sounder basis. The worker under a profit-sharing scheme received his wages partly in cash and partly in shares which, however, did not entitle him to the same control of the business as the capitalist and this tended to create suspicion between the workers and employer. ,