Evening star., 1946-04-21


who use them, is coming to the fore
again. 1t has, historically, in periods of
expanding business and mounting in
Gustrial tensions.
The term is so difficult of precise def
milton. and is applied so loosely, that 1T
has been stretched to cover almost any
thing from the CIO-UAW contention
that ability to pay" be considered in its
wage demand on General Motors, to the
distribution of Christmas turkeys by
some employers.
For the purpose of this discussion 1t
is perhaps fitting to adopt the definition
formulated by a Senate committee a
few years ago: "All payments to en-
ployes which are in addition to the mar
ket, or basic wage, rate"
Interest in profit sharing Jagged dur
ing the war period of high production
and high wages Evidence of the re-
yival of that interest in Washington is
found in proposals advanced recently by
Senator William F. KnoWland Of Cali
fornia and Representative Clare Booth
Two Notable Examples.
In industry there have been two nota-
BILE examples this year-adoptlon Of
profit sharing by the four West Coast
building material firms of Eric A. john
ston, president of the United States
Chamber of Commerce, and the unique
contract of Henry j. Kaiser with the
CIO-UAW which calls for bonus Of S.
for each automobile produced, payment
of the bonus to be contingent on unin-
terrupted production.
Senator Knowland has thrown out for
discussion a profit sharing plan which
would provide for negotiated basic wage
rates, and "leeway" retroactive increases
to be paid each year after determination
OF profits for that year.
Applied, for instance, to the now
subsiding wave of disputes in the auto
mobile INDUSTRY, this might have meant
immediate increases of 10 per cent and
"leeway" increases of 20 per cent, con-
tingent on profits.
Mrs. Luce has introduced in the House
q resolution calling for an investigation
by its Ways and Means Committee to
pick up where the Senate inquiry left
off in 1889 and examine the question OF
how Congress can foster the develop
ment of profit sharing.
Senator KnoWland told the writer his
thoughts on the subject have not yet
jelled, but that the response to the sug
gestion he made, judging by several
hundred letters, had been favorable. He
is continuing his study of the matter,
and may have something to present to
the Senate later he said.
Reasons for Support Differ.
He showed the reporter a file of let
ters commenting on his proposal. Many
were from firms which have profit shar-
ing in effect others were from compa
MES which indicated they were studying
the subject Some were from locals of
labor unions, some from union members.
Most were from individuals who spoke
as such and not as representatives of
either management or labor.
Nearly all were favorable. Among
these we're letters from central organ
ization of AFL unions in a California
town and a Chamber of Commerce in
Oregon. A local teamsterS' union sent
its Endorsement, and several letters of
approval were from writer's who de-
scribed themselves as members of labor
organizations. A curious feature Of the
letters from those who did not identify
themselves with either union organiza-
ton or management was that, while
nearly all favored the scheme they did
SO for different reasons. Perhaps half
thought it favored unions, and the 9TH
ers thought it would serve to curb un-
ions.
Labor leaders generally" Knowland
said, seem to fear that profit sharing
will lead to speed-up systems, and prob
ably most labor leaders would be op-
posed to profit sharing. But if 1 am to
Judge by letters received, union mem
berS seem to favor it.
Not all letters from management we're
favorable Knowland said some raised
the objection that profits were one
thing and wages another, that the two
should not be linked. Some protested
that they did not want to let their en-
ployes know what their profits were.
But much of this information is already
available through reports to stockhold-
ers, income tax returns and data sup
piled to the OPA and other Government
agencies, Knowland pointed out.
Cites Successful Plans.
Mrs. Luce told the writer the mini
mum objective of the House inquiry
she seeks should be to point out to the
country that there are hundreds of areas
of labor -manag cement peace in this peri
Cd of industrial strife and that these
areas of peace exist largely where profit
sharing is practiced. The maximum OBJ
jective, she thought, should be legsla-
ton which would allow some form OF
tax reduction to employers who do share
profits with employees.
The employer who pays so per cent
of his income to Uncle Sam in taxes is
really sharing the profits" she added.
Very little of that money goes to the
actual cost of necessary Government.
Most of it goes to pay for community
services which benefit all the people.
What I am suggesting is that Uncle
Sam share profits at the source with
the people who work, rather than at the
spigot, which now is Washington
Mrs. Luce sent letters outlining her
proposal to 300 business firms through
out ths country About one-third re-
spondet and of that third about 70 per
cent, she said, indicated serious interest
OF those who were interested 98 per