Profit-Sharing.

Progress, Volume XV, Issue 2, 1 October 1919, Page 626

Profit-Sharing.

Employers’ Federation Approval. “It is pleasing to note that the profit-sharing principle has recently found acceptance in several important business undertakings in this Dominion, and the directors of those concerns are to he congratulated upon the progressive spirit which they display,” states the New Zealand Employers’ Federation Industrial Bulletin. The article refers to recent announcements of the introduction of profit-sharing, and proceeds:—

“These three examples of co-pairtnership, profit and bonus-sharing respectively give a valuable lead to other New Zealand firms and point the way towards enlightened methods of recognising the human element underlying the wage contract. It is not contended that such schemes constitute by any means a full or final decision of the whole question of improving industrial relations, but they do most certainly involve important principles which must be recognised and adopted if our local industries are to make the progress which alone can bring greater prosperity to a large section of the employers ahd workers of the Dominion.

“We venture to again commend this matter to the earnest consideration of employers in industries where employment is at present —or can become — permanent in its nature. The principle of bonussharing may be considered the first step; profit sharing—on whatever basis may suit each business or industry— follow, and finally co-partnership stands as a complete and unassailable success in cases where it can be reasonably and honestly adopted. To secure a full measure of active co-operation between the business and its employees, and to bring about harmony, stability, and general progress and benefit for all, some recognition and some material incentive must be granted to the individual units which constitute the operative enterprises as a whole. Particularly in the earlier stages of the adoption of anv plan of this nature, a sacrifice on the part of the employing capitalists may be involved, but this monetairv sacrifice must, if the scheme is honest in intention and sound in principle, bring in the long run benefits which can be secured in no other way.”—