New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-03
Singular Experiment in
Boston Which Involves
Sharing Profits.

In Boston they have a novel way Of doing
many things Nearly every Bostonian has
hobby. This tendency has found its most We
cent elimination in one Of the big department
stores in the Hub that Of the William Ffene
Sons Company where the plan Of making all
the store employees sharers in the profits and
giving them all a vote in the executive man
agement OF the concern has resulted
cessfully that employers in similar concerns in
New York and many Of the other large cities OF
the country. who have visited Boston at DIFF
ferent times recently to study this experiment,
are promising to put It into operation IN their
own stores
While the Filene store is owned by a corpora
ton in which A Lincoln Fene Is the president
and Edward A. Fiene the treasurer. this well
fare plan of the concern, which has been de-
veloping since 1900, gives each Of the $50
clerks, saleswomen and cash boys an equal vote
with the owners in any question of store gov
eminent and discipline, and it further gives the
Filene Cooperative Association, the whole body
of employees and employers. the power to veto
any decision Of the owners.
This association has the power to initiate
large or amend the scope OF any rule affecting
the efficiency of the empIoye. In other words.
the body of the employees govern the store
cording to rules which they themselves have
initiated.
Upon none Of the executive committees Of this
employees body do the members Of the firm have
representation as employers. They vote with
the floors upon which their offices are, the same
as any other individual in the firms employ
Superintendents firm members and employees
from the ranks have all, at different times. been
presidents of the association. A desire to in
crease the efficiency Of the employee by placing
him in the most democratic relations to the
firm nernbers and those above him. and by fur
nishing him with the added incentive OF becom-
ing a profit sharer. has been the keynote by
means Of which the originators Of this expert
ment have reaped success.
The initiation Of this plan was the outcome Of
the welfare work undertaken by Edward A.
Filene. in which he soon perceived certain in
eradicable weaknesses from the fact that the
employe himself had active direction in
what most particularly concerned him. AS a
first step Mr.. Filene had his employees form
themselves into the Filene Cooperative AS
ISOLATION, and turned over to this body the
called welfare work. This first move was soon
followed by another. that of giving the
ISOLATION the right to change any store rule al
though at this time the firm members reserved
the right, later given up, to veto.
Within a short time the association voted for
an entirely new store rule book: they have
Z since voted
have revised the whole book. The next sur
prising innovation In the store management soon
followed. when the right given the associa-
ton to elect, by secret ballot, a committee to
arbtrate fines and charges against employees.
This committee now has the right to reinstate
any employe who IL believes has been I'M
Justly discharged. The weekly pay envelope has
| printed on II the following: I'm case there is a
deduction from your salary for any charge
which you think unjust. appeal to the arbtra-
ton committee through its members on your
| floor
The powers OF this arbitration committee are
/ final in all cases OF controversy between the
company and employe. including dismssals,
and between one employe and another While
II does not have the power to change a store rule
II suspend this rule until the association has
taken action upon II. This arbitration com
mittee consists Of nine employees, the members
of the firm having representation upon IT,
But the most pleasing departure in connection
with this experiment is the possibilities which
the employees have of sharing in the concerns
profits. While not all the employees have as yet
succeeded in becoming shareholders, those who
are not have the power of adding 10 their weekly
/ income through the percentage system which