September in. llll'.] 



HARDWOOD RECORD 



38a 



A Profit-Sharing Plan That Works 



It has been stated by one of our largest employers of labor that if 

 American employers as a whole do not themselves meet the present 

 day problems of industrial economics, they will not in the near 

 future continue to enjoy the privilege of determining those ques- 

 tions for themselves. Labor through tli" li;illot will approjiriate to 

 itself that privilege. 



Possibly the danger is not so alarming as is believed in some quar- 

 ters, but it is very real as is evidenced in industrial developments 

 all over the world as affecting labor 's relation to the industries 

 employing it. 



It seems obvious that the solution lies, not in arbitrary wage 

 increases, but rather in methods whereby the interest of the em- 

 ploye may be enlisted in a sincere and lasting way in the institu- 

 tion which employes him. 



Possibly one reason why plans to this end have not been more 

 generally adopted is because so many such plans have been en- 

 tirely Utopian and impracticable and have either not appealed to 

 the business man or have not worked after he has gone to the 

 trouble of installing them. 



There are, however, several plans in existence and operation 

 which through a considerable period of trial have demonstrated 

 their entire practicability. 



One of the most successful of these is now in operation at the 

 plant of a veneer and panel manufacturing company which for 

 successful and aggressive business methods has made a mark for 

 itself in the panel industry. 



The New Albany Veneering Company, New Albany, Ind., has had 

 a profit-sharing plan in operation for a substantial period which is 

 operating very smoothly and with excellent results for both the 

 company and its employes. Hardwood Becord is pleased to present 

 in the following announcement by the company to the employes an 

 analysis of the conditions which led up to the adoption of the plan, 

 giving also various clauses describing the obligations of the em- 

 ployes as well as the benefits they enjoy. It can be said that the 

 result of the adoption of the plan is already very apparent, not 

 only through greater efficiency and loyalty, but through more steady 

 work on the part of all of the employes. 



Due to our nuitual efforts, the business; <if the New .Miiany Vnueering 

 Company has grown from a $100,000 annual Imsiness to nearly .fl, 000.000 

 annually, and with the conpletiou of our new addition, which is alread.v 

 started, we hope to almost double our present capacity. 



During ail the years we have been in business we have, in various ways, 

 endeavored to prove our appreciation of the good will and faithful co- 

 operation of our employes. 



We have at all times endeavored to properly ('(insider their welfare, 

 realizing Ihat our interests are mutual. 



We have due consideration for these mutual interests and wish to prop- 

 erly safeguard them and to avoid any possildlity of interruption in the 

 conduct of our business from any cause. 



The invested capital and management of this business is entitled to a 

 fair return from its risks and efforts. 



Labor is entitled to fair and just wages, good working conditions, rea- 

 sonable hours and fair treatment. Therefore, we announce the following 

 plan : 



Each year, after 10 per cent has been set aside on the capital stock of 

 the com]>any, the balance of the profits, if any. shall i)e divided fifty-flfty 

 between our employes and the stockholders. 



The earnings of the company shall be computed for the fiscal year be- 

 ginning April 1. 1919, and ending March 31. 1'.I2(I. 



Each and every employe who has been regularly and continuously in 

 the employ of the corporation for a period of three months or longer, prior 

 to March 31, 1920. and who is still in the employ of the corporation thirty 

 days thereafter or at the time the distribution of profits shall be due and 

 payable, will, within thirty days after March 31. 1920, received his or 

 "her share of the profits to be divided on the basis of days worked and not 

 on the basis of rate of pay, which means that the highest paid and the 

 lowest paid worker and all between, will receive the same amount, either 

 in stock or in cash, at the option of the directors, providing tlu^ number of 

 .days worked is the same. 



Clause A. This plan shall include only such employes engaged in the 

 regular business of the corporation ; persons employed for special work 



shall not be included, even though the time of their employment may ex- 

 tend over a period of more than three months. 



CIjAI'se B. If, because of death or serious injury, any employe is forced 

 to leave the .services of the corporation after having been employed tor a ' 

 period of three months or longer, such employe or his estate, will be en- 

 titled to participate in the distribution of profits, tor that period, on a 

 basis of the actual number of days worked. 



Ci.Ai;sB C. .\ny employe on the pay-roll at the beginning of any period, 

 who voluntarily leaves the services of the company before the distribution 

 of profits shall have been made, will forfeit his or her right, under tins 

 plan, to share in such profits of the corporation for that year. 



Clause D. Any employe who willfully and persistently refuses or de- 

 clines to perform faithfully or efficiently the tasks assigned to him or her, 

 is suliject to immediate discharge and such discharge will serve to forfeit 

 the right of such discharged employe to participate, under this plan, in 

 the profits of the corporation. 



Clause I'J. In order to encourage and to reward faithful and prompt 

 service and to discourage the habit of losing time and of coming late to 

 work, any employe ringing late on the clock or laying off any part of a 

 day will, in computing the share of profits, to be charged one full day for 

 each time *^o recorded. 



So that no injustice may he done to any employe under the terms of 

 clauses C, D and E of this plan, it Is provided that a committee, con- 

 sisting of the board of directors of the corporation and three representative 

 workers, to be nominated and elected by the employes of the corporation, 

 shall constitute a committee to hear and pass upon such complaints and if 

 in the opinion of said committee, such employe making the complaint, is 

 entitled to have his complaint further considered, the matter will then be 

 formally presented to all the employes and a majority vote will decide 

 what disposition shall be made of such case. 



It will be noted in a careful study of this plan that no employe receives 

 a share of the profits in April, 1920, who was not on the pay-roll of the 

 company, .lanuary 1, 1920. This method of figuring the length of service 

 will apply each year hereafter so long as this plan may continue in force. 



We believe we have today as strong and as profitable a business of Its 

 kind as there is in the world. We expect to build and develope this busi- 

 ness, with your co-operation, as rapidly as good conservative tiusiness judg- 

 ment and management will permit. 



We congratulate our employes that they are connected with the New 

 Albany Veneering Company. We congratulate the corporation that it has 

 such a splendid organization of loyal workers. When we have a good year 

 you will share with us in our prosperity. When we have poor years you 

 will share the disappointments also. 



.\s time goes on and you save money and wish to become owners of New 

 Albany Veneering Company stock, we will always give you, as working 

 partners, the preference. 



This plan, the result of years of study, hard work and careful and 

 conscientious consideration, is offered as our best conception of wdiat in- 

 dustry really means. So long as this plan works satisfactorily to all con- 

 cerned we expect to continue it, and in the placing of this plan in operation 

 the directors and stockholders of the New Albany Veneering Company are 

 in hearty and unanimous agreement. 



Estimated Lumber Cut 1918 



The preliminary figures showing the output of lumln'r in 1918 

 have been compiled by the Forest Service. Totals only are shown, 

 and the details will come later. Reports ha.ve been received from 

 22,.546 mills, which number is believed to represent about half the 

 mills in the country, but those from which reports have been re- 

 ceived are larger mills than those not heard from, and most of the 

 output of lumber is represented. The total cut for the year is 

 estimated at 32,000,000,000 feet. 



This is eleven per cent below the production in 1917, and the only 

 states which show an increase over the production in 1917 are 

 Washington and Oregon, and the increase there is only two per cent. 



The decline in production when 1918 is compared with 1917 is 

 20 per cent for the yellow pine group of states, 19 per cent for the 

 North Carolina pine group, and 9 per cent for the Lake states. 

 The reduced production in 1918 is traceable to high costs, dimin- 

 ished construction work aside from war demands, and diminution 

 in the export trade. 



During the past fifteen years the largest production has been 

 credited to the years 1906 and 1907, about 46,000,000,000 feet for 

 each of the two years. The cut in 1916 was approximately 40,- 

 000,000,000 feet, and in 1917 36,000,000,000. 



