LABOUR CO-PARTNERS.

Wairarapa Age, Volume XXXI, Issue 3048, 19 November 1908, Page 3

LABOUR CO-PARTNERS.

SIR C. FURNESS' OFFER.

"I offer to you and your union?, singly or in combination, to hand over to them our shipyards at this port as going concerns for such sum or sums as may be determined by a recognised firm or- assessors appointed by joint nomination." This, the most startling suggestion that has arisen out of the acute state of unemployment, was made in the Council Chamber of West Hartlepool, on October Bth, by Sir Christohper Furness to a gathering of the representedves of the trades unions interested in shipbuilding. After reviewing the position, Sir Christopher expressed his conviction that the capitalist, not necessarily being the wicked orge he is sometimes painted, the only basis on which Capital and Labour could enter into relations was primarily that of buyer and seller of a commodity called labour. He was intent solely upon the promotion of industrial efficiency, and, as an outcome, industrial profit. In these circumstances he made an offer to his employees, and presented :for their acceptance v«vo alternative | schemes. The trade unions were capable, organised, powerful bodies, ■and why should they not go into business on their own account? He would offer the yards to the unions < at an assessed figure, or in the alternative a limited co-partnership. "I invite you," said Sir Christopher, "to become limited copartners in these shipbuilding yarda, as distinct from the shipowning and other ramifications of the firm, of Furness Withy and Co., on conditions which I shall state within the aiext few minutes. Co-partnery (or, as some people prefer to call the principle or practice, profit-sharing) is still in a fluid state in this country —there are almost as many forms as there are co-partnerships, the conditions being suited to the circumstances of each business; but for all j that there are comprised in it features which, in view of the seriousness of our present situation, undoubtedly deserve to be tested as a means of avoiding the supreme disaster with which temper and indiscipline threaten our industry. The initial condition is that the em-ployee-partners should prove their good faith by becoming holders of special shares, to be called employees' shares, in the capital of the shipbuilding company owning the Middleton Shipbuilding ard at Hartlepool and the Harbour Dockyard at West Hartlepool, under my chairmanship, paying for such shares by agreeing to a deduction of 5 per cent, from their earnings until the total amount of their shares is coverEd. For the 5 per cent, deduction so invested in the special shares I .have named you would receive—whether the company divided any surplus profit or not,—4 per cent, per annum as fixed interest. Such an arrangement would not interfere in tha slightest degree with a workman's freedom of action, while a workman leaving the service of the company would be able to sell his •shares to one or more of his fellowemployees at an assessed, or, it may ;be, an arbitrated value, based on the market prico of the day." In further development of this second project, Sir Christopher stated that the works would continue to be under the control of a board of directors with the supreme power, as at present, vested in the •chairman and managing director of the company. On the other hand, neither would the attitude of the company toward trades unionism or the Federation or Employers be altered. While the employers would continue to. work and be paid according to trade union regulations and rates prevailing in the area, and would be receiving the 4 per cent, fixed interest on the shares tljey hail bought on the easy payment system, there would be divided between them as holders of employees' shares and the holders of the ordinary shares in .the cumpany whatever sum might re- . main after the apportionments for capital's interest (5 per cent.) and ■ the depreciation, reserve and development funds had been provided —such amount being shared between the employees on the bnsis of their individual holdings, in addition to •the fixed minimum interest of 4 per cent, per annum; and if hy reason of fat reserve funds the shares of the company rose in value their own shares would follow by similar accretions. In this way they would receive not only a portion of the profit made upon their own labour, but also a share in the sum 'won by the foresight and initiative of enterprise and the staying power •of capital. A Works Council would ■be set up, to be composed of an 'equal number of representatives of „the employees and representatives of '•the firm. Its chief purpose would be the promotion of friendly communication between the firm and its labour partners on all affairs of common interest. Pie flew to amity, as he ; hoped the workers would fly to it, as • a haven of refuge after a prolonged 'and worrying and sickening course of friction, and sincerely trusted that the proffered partnership—which was a real partnership—wbuid be an all-powerful weapon for stopping strikes, whether sectional or general, which had been the curse of the shipbuilding industry during the past few years, and would be its ruin if they did not cease Labour had a grave responsibility in this matter.