The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-21
ny ROGER W. BNBsON.

economic principles. After a thorough
study OF past and present plans here
with offer a composite plan which is.
Of course, not the last word. but which
seems to embody the best principles of
those already tried together with other
IDEAS that believe must some day be
adopted
In any plan honesty OF purpose on
the part OF the employer Is an absolute
necessity, and the lack Of this has been
the chief cause for the failure of many
profit sharing plans that have been
abandoned In the past. The settlement
Of labor problems Is distinctly up to the
employer. The next move is his.
With the growth OF big business and
the gathering of thousands of workers
into one plant the individual touch of
the employer with the employee has
been lost. When the employer was also
a worker among his employees, knowing
them all by name and their individual
good and bad points. the employees had
no complaint Of "being treated like
machines" Suggestions and complaints
then came naturally to the employer.
whereas now they rarely get beyond
The overseer until strike Is imminent.
In some large concerns employment
bureaus are already successfully estab-
lished, and other large concerns should
have them. At the head is a man
known as a labor secretary, a well paid,
able student who has knowledge of
human nature and broad sympathies.
and whose purpose is neither to ex-
plot labor nor TO cater to IT, but to
understand and help all interests. OF
course there are some labor secretaries
who are employed always to take the
part Of the employer and spend their
time trying to break strikes, rather than
trying to prevent them. The best man
for a labor secretary would he one who
has struggled in social settlement work.
but who has also a good idea of practi-
cal business. Such men are to be had
In fact I know of one in the employ
ment Of q big Chicago clothing house
who came from a great university
where he was a professor in economics
after having been with publishing
house.
recently talked with a union man.
q magnificent type. who was interested
In efficiency plans. I asked him Why
do labor unions oppose efficiency plans?''
His reply was:
because they do not believe in the
sincerity of the employer. They fear to
increase their production, because they
think that their employer will cut down
the bonus as soon as they begin to make
what he considers too much"
cannot condemn too severely the
dishonesty of such employers. In the
first place, they have put a half baked
plan into operation without foreseeing
just how much increase in wages the
employees would get Although this
can be scientifically determined, yet in
most cases 1t Is guessed at. In the Sec
ond place those employers have wished
TO steal most OF the gain from in
creased production. am willing to
state most emphatiCally my belief that
efficiency and profit sharing plans will
never succeed until the manufacturers
are willing 10 share fairly with the men
the results of increased production.
A good profit sharing scheme may be
the best efficiency plan there is If 1t
gives the employee the right state Of
mind. I personally think that al least
half Of the additional profit resulting
from efficiency plans, should go to the
employee. The employer often invests
very little in the new plan, and his
gain through overhead charges is clear
"cream." On the other hand, the worker
Is investing his strength. his loyalty,
his enthusiasm and his thought.
The employee wants a square deal
and he will get 1t. II the employer does
not wisely take the Initiative, he may be
prematurely pushed into some form or
other of I. W. Wism, which may harm
both him and the employer. The work.
ers have the power to do much more
than they have attempted. and they are
awaking to a realization Of this power.
One of my friends who has a small
business said to me: But havesno
profits to share. I am not Ford nor a
Carnegie" With such men I have great
fellow feeling, but they have no cause
to worry They have the personal touch
with their men, which Is worth an i'm
mense amount.
Moreover. the solution of labor prob
lens, including profit sharing, will first
fall on the large corporations, and the
small manufacturers may benefit by
their experience. ! do not mean to say,
however. that the small business man
should neglect 10 study the labor move
ment. Especially should the head OF
a large business at the present time
study the labor question and with as
much care as he devotes to all other
details OF his business, or else hire some
competent person to do 1t for him.
Profit sharing can be made to pay its
way. The human operations In industry
can be improved nearly so per cent in
many cases without detriment to the
worker, although care must sometimes
be taken not to allow certain people
particularly young men-to overdo. One
efficiency plan I know of provides for a
scale down of bonus after n certain point
in production has been reached
Every profit sharing plan should have
rewards for inliV ilual proficiency After