Excerpt from Profit Sharing by American Employers: Percentage of Profits, Special Distributions, Stock for Wage-Earners, Exceptional Abandoned Proposed Plans
In the last seventy-five years there have been in this country and in Europe various attempts on the part of employers of labor to establish schemes whereby employees would receive some share in the earnings of the business in addition to their fixed regular wages.
These wage additions have been indiscriminately termed "profit sharing" and they have been regarded by many employers and a few eminent students of industrial tendencies as forecasting a final "solution of the labor problem."
Because of the desire of many employers for exact information on the workings of these plans, and public interest in the claims made for profit sharing as a general remedy for labor difficulties, The National Civic Federation has made an extensive investigation and analysis of more than 200 plans in the United States, embodying the idea in one form or another of extra payments to labor. Many of these experiments have been abandoned as acknowledged failures; others are still in existence and differ widely both in method and in results claimed for their operation. The inquiry by The National Civic Federation was undertaken with a view to presenting an accurate and unbiased statement of the facts, and the results are published for whatever light they may throw upon the question whether profit sharing is a success or a failure.
The analysis of specific plans is based almost wholly upon data furnished by the companies themselves, and necessarily so, for the reason that practically no other sources of information are available.
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