The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-12-11
under BONUSPLAN'
INCREASED COSTS
SHARED BY LABOR
Planters Association Adapts
System To War Conditions;
Announces New Scale
BASIC FIGURE RAISED I
+. TO ElGHTY-FIvE DOLLARS
On Price Fixed BY Commissions
Laborers Will Receive Fiji
ty-fodrl Percent As, Share =,


tions was announced yesterday by the
Hawaiian Sugar Planters Associa-
tion following meetings of the commit
tee on bonus revision, and the trustees
of the association. Announcement was
made from the labor bureau of the as.
ISOLATION and, as forecast by The Ad.
vertiser, the change is revision
downward to allow for the increased
cost of production. u
But one change is made In the re-
vised bonus system but that amend,
menf is basic for IL changes the mini.
mum price upon which the bonus Is to
be paid from $7l to $S5. That is with
sugar at 4.25 cents a pound labor
would receive one and one-half percent
bonus instead of twenty one percent as
ut the present time. Approximately
six cents pound has been Fixed by the
sugar commissions as maximum price
for raw sugar and ON that basis the
laborer will receive bonus of fifty
-four percent instead of seventy five
under the old system. a'>.l '.s'. 4
c"sts Are Higher ,ar y ." vi
tn territorial taxes raised fifteen
percent, and not even considering the
added war taxes where there are earn
ings upon which Il can be assessed,
with fertilizer costs doubled, large i'm
creases in the costs of all that enters
into sugar production, a tax on the
bills of ladings of all supplies that are
brought in and all sugar that is sent
out, with the practical certainty of a
much higher freight rate for both sup
plies brought in and shipments made,
which will perhaps be at least double
those that prevailed this year, thu
planters have found it necessary to
base the bonus on figures $14 tor
higher than the old. This does not
fully cover the increased costs of pro
duction TO the plantations but divides
it and was the desire of the planters
to make labor 3 share of any profits
as large as might be consistent with
fair business methods, members of the
association say. 4
Profits and Costs Shared @.t ia
1t is pointed out by sugar growers
that the bonus plan was designed as a
profit sharing policy and that profits
must be based upon costs Costs are
and will be materially higher than
they were when the theory was first
put into practise. If it is TO be fair,
sharing Of profits labor must share
WIN INC
costs. The profits of both are de.
creased accordingly, but in addition to
this the investor in the sugar industry
must pay tax on his earnings which
the labOrer will not have to pay.
Requests Not Needed .,,
1t is noticeable that in the announce!
ment of the new bonus basis no heed
is paid to the requests of the Japan
a a a k.,..
of the Higher Wage Question either
in regard to increases in wages or to a
read iustment of the system which
would permit those who work less than
twenty days a month in the case of
men and fifteen days a month in the
case of women to participate in the
division of profits. One reason for the
putting into effect of a profit sharing
plan in the first instance was to en-.
courage regularity of service from EN-.
ployed plantation labor. 1t has at no
time been likely that the planters
would change that policy.
Believed To Be Acceptable
How the laborers will take the an,
nOuncement remains to be seen. The
head of one of the largest agencies
said yesterday that he was sure they
would take it in the spirit of fairness
in which it, was offered. He added
that he had been associated with them
in business ways for years and that
he had found them generally fair and
ready to meet half way when the rea.
sons were explained. When it was
shown to them that the old bonus was
an impossibilty, he believed that they
would accept it without demur. .-...
The following is the announcement
made by the association;
Bonus Announcement .. -.....l.
When the bonus system was inaugu
rated in January, 1912, $7l per ton
was set as the point where the bonus
should begin as being fair figure
when there was taken into considera-
tion the average cost at market of Ha-
waiian sugar at that time. Since the
European War started conditions have
radically changed and the entry of the
United States into the struggle has
been followed by a heavy increase in
all of the expenses of the plantations.
During the past two years, by rea-
son of the war, the cost of producing
sugar in Hawaii has increased in ex-
cess Of $25 per ton. 50 "
In addition to this the plantations
must face q large Increase of freight
rates on sugar as well as all materials
imported, and must also pay income
and war taxes which will amount TO at
least twenty five percent of their
profits.
On account of these increased costs
it has been found necessary to amend
the bonus schedule. ..
The following bonus SCHEDULE is there,
fore announced to date from NOvem-
Der /, 1917 and to continue until fur
thCr notice.
The basis of the bonus shall be the
average price upon which sales of Ha-
waiian raw sugars are determined. J..
The bonus of one and one.half per
cent will commence with sugar at $S6
per ton and win increase one and one
half percent for every dollar per ton
over $s5, aud thirty three and one,
third percent Of the wages earned will
be paid monthly as an advance on ac'
count Of the bonus as heretofore.
Sliding Scale Bonus (Amended as of
November /, 1910 l"'.
The sliding scale bonus plan adopt