PROFIT-SHARING.

Wairarapa Age, Volume XXV, Issue 10713, 23 December 1913, Page 4

PROFIT-SHARING.

There are not a few people who entertain the belief that profit-sharing will bo found a solution of the Labour problem. We are not of that opinion ourselves,! for we have been! unable to discover a means whereby losses would be met in times of dullness in trade. " What is known as the "Goden" system of profit-sharing has been largely quoted. The scheme applies to the net orofits-of every financial"year. After the year's expenses have been paid, and a proper allowance lias'.been made'for nation of all: "wasting; assets,'*: 4 n > terest oh capital at the rate of; five, per cent: is. charged against'. profits. After that capital and labour participate at the same rate per cent. The''dividend is ■.apportioned to the] total a-noimt pala Tor labour during j the vear on an equal footing. The idea 'is that as the .first charge upon the business is for labour, paid periodically during the year, eo the next charge is simple interest on the wages of capital, and thereafter labour and" capital should be regarded as having a comnion claim upon the profits. To all workers who have been a year in the employ of a firm the bonus is paid in new shares in the concern, and the future dividends on these is paid in cash. The labour bonus payable to persons -who have not'been in the employ of a firm for the whole year is placed to the credit of. the workers' fund and devoted strictly to the various ways of benefiting "the employees. The workers' shares do not carry control of \he business, 'but they have the same value as the proprietors in earning dividends and the same right m the event of the company ,being wound