Numerous schemes have been devised by employers to increase output by giving the employees an interest in the product. One of these, profit-sharing, because of its importance, deserves passing notice. This plan in general provides that at stated intervals each employee shall receive, in addition to the wages which he has drawn regularly each week or each month, a share of the profits of the business. Usually no provision is made for the employee sharing in any loss. Numerous concerns in the United States have tried out this plan with varying success. Some have condemned it after trial, others have praised its effect on their business. Its highest development has taken place abroad. In Paris, for example, a company of house painters instituted the plan years ago with the result that in time the employees themselves owned the business. Organized labor has generally opposed profit-sharing on the ground that an employer can pay bonuses at stated periods only by withholding from his employees what is rightfully theirs in the form of regular wages.
Courtesy of Postum Cereal Co., Battle Creek, Michigan Model Workman's Cottage.
This is but one of many homes which a large manufacturing plant in the United States helped its employees to build.