Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-04-20
perpentace of Profits to E.npioyes.

Some days ago there appeared IN the
REcoRD-UNIoS a dispatch stating that
factory firm in Maine, employing 100 men
and women, had proposed to the employees
that after a fixed rate of wages a given
percentage of the net profit OF the factory
should be divided among the workmen, in
proportion to their earnings, and that the
employees had entered into an agreement
10 that end. There have been instances in
large number in France and England, and
IN this country. of percentages of the profits
of labor being added 10 the wage OF the
worker 1t is not recalled that such expert
ment, however, has been attempted IN sac
ramento, save in the instance ABOUT TO be
related. The subject touches most i'm
portant and much debated policy relative
to the relations of employers and employees.
In many eases an interest in profits has
been given employees as an incentive to
faithfulness and energy, in few because of
the philanthropic desire TO advance the
material well-being of the employe, and
put him upon the road to business
control. Weinstock Il Lubin, merchants,
OF Sacramento some years ago notified the
heads of departments in the store that, as
a reward for faithfulness and to identify
them with the business more closely, a GER
tain share of the net earnings OF the house
would be distributed among them, accord
ing to plans then being formulated. The
purpose was stated to be to get out of the
ruts of old customs regarding wages. The
plan was regarded as experimental, though
the proposers had perfect faith in its wis
dom. Four annual dividends were dis
tributed, and, after four years of expert
ment, the firm and those affected pro-
nounced the scheme a success. 1t is now
proposed to expand it, and to-day the en-
iarged scheme is to be announced to the
employees. In brief it is this: A grade is
established, known as that of "Co-opera-
tors" In it are admitted all employees,
other than heads of departments, who
have been in the employment of the house
since January l. 1884, and employed three
successive years without unexcused inter-
ruptiOn. At the close of this business
year, or soon after stock-taking, a certain
share of the net earnings will be set aside
to be distributed among the ce-operators in
proportion 10 their earnings for the year
For neglect OF duty employees will be
de6ited, and the aggregate OF these debts
will create a sort of reserve fund, which
will be equally distributed among all the
co-operators in the form of credits. The
credit system, however, is to apply to en-
ployes who have been such for less than
three years, when for a high standard
gained they may be advanced-say at the
end of two years-to the co-operator's
grade. When vacancies occur those stand
ing highest are to be preferred for promo
ton. The rating for excellence of service
IS to be by system under which each en-
ploye will make the history of his service
for him or herself. This new system of
distribution of earnings of business to
wage-winners is one that moves upon a
plane that at this time engrosses much of
the best thought of employers, and of
thinkers and writers upon the relations of
the employing and the employed classes.