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Profit Sharing (Classic Reprint)

Profit Sharing (Classic Reprint)

32834957
1187.5 руб.
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Excerpt from Profit Sharing

The term profit sharing may be applied to any arrangement whereby labor is rewarded in addition to its wages or, in lieu of wages, by participation in the profits of the business in which it is employed. Benefits of various kinds, as insurance, schools, libraries, and beautiful surroundings, so far as maintained by employers out of their profits and enjoyed by employes as an addition to what their wages would purchase, would have to be regarded, in a strict analysis, as an indirect form of profit sharing. A sliding scale of wages, if adjusted to fluctuations of profit instead of to the changing market prices of the goods produced, would be a very direct and simple form of profit sharing. Whenever workmen own shares in the capital of the business that employs them they thereby, of course, participate, s capitalists, in its profits, and if in consequence of this arrangement the dividend is increased by the increased efficiency of the stock-owning workmen, the increment of increase that goes to those workmen is a reward of labor rather than of capital, and, therefore, a true case of profit sharing.

Usually, however, the term is understood to mean either a direct participation, in profits in lieu of stipulated wages, or a bonus paid out of profits to labor in addition to customary wages. To these we add participation through a stock-owning by the employed workmen that is expressly contemplated and provided for in the constitution of a corporation.

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