CHAPTER XIV

POSSIBLE REMEDIES—PROFIT SHARING

Domestic service, as has been seen, is accompanied by certain social

conditions that prevent many from entering the occupation. The present

unclassified state of household employments operates in the same way. But

in addition to this lack of organization, other industrial disadvantages

are found. These are the lack of all opportunity for promotion within

the service, the lack of kindred occupations opening out from it, the

irregularity of working hours, and confinement evenings and Sundays, the

necessary competition between those of American birth and foreign born

and colored employees, and the lack of personal independence. These, in

addition to the unorganized condition of the work, are the industrial

disadvantages that tell most strongly against the occupation; they are

the economic maladies that can be alleviated only by the application of

economic remedies.

The attempt has been made to show how the lack of organization in

household employments can be partially met by taking out of the house

a large part of the work now performed there, and having much of what

must necessarily remain done by the piece, hour, day, or season, thus

securing better specialization of work and directing it into the current

of industrial progress. The second group of industrial difficulties

enumerated must in a similar way be met by measures that have proved

successful in similar fields.

The vexed questions of wages and hours of labor in the industrial world

are still unsettled, but in certain industries some little progress

towards a solution of those difficulties has been made through the

introduction of the profit-sharing system. In order to answer the

question whether profit sharing could be introduced with advantage into

domestic service, it is necessary to consider somewhat in detail the

question, What is profit sharing, and also the question, What have been

its advantages in general economic society?

Profit sharing, as defined by Mr. Carroll D. Wright, is the term that

“may be applied to any arrangement whereby labor is rewarded in addition

to its wages, or in lieu of wages, by participation in the profits of the

business in which it is employed. Benefits of various kinds—as insurance,

schools, libraries, and beautiful surroundings, so far as maintained by

employers out of their profits and enjoyed by employees as an addition to

what their wages would purchase—would have to be regarded, in a strict

analysis, as an indirect form of profit sharing.”[311] Mr. Nicholas Payne

Gilman defines it as “the method of rewarding labor by assigning it a

share in the realized profits of business in addition to wages.”[312] Mr.

D. F. Schloss considers it “an arrangement under which an employer agrees

with his employees that they shall receive, in partial remuneration of

their labor, and in addition to their ordinary wages, a share, fixed

beforehand, in the profits of his business.”[313] The International

Congress on Profit Sharing, held in Paris, in 1889, declared it to be “a

voluntary agreement, by virtue of which an employee receives a share,

fixed beforehand, in the profits of an undertaking.”

The history of profit sharing is short, and can easily be recalled.

It began in 1842 with the _Maison Leclaire_ in Paris, and has been

subsequently introduced into many business houses in France and

Switzerland, countries where the economic conditions lend themselves

readily to its progress. Its adoption in Germany has been less extensive,

while the English industrial system has hitherto seemed hostile to it,

although Mr. D. F. Schloss in his recent Report claims that a larger

number of experiments in profit sharing have been made in England

than in any other country. Probably about one fourth of the business

establishments conducted on this principle are found in the United States.

What are the advantages that have resulted from this fifty years of more

or less extensive experience with the system? There is first the fact

that it results in the development of what Mr. Carroll D. Wright has

called “the group of industrial virtues.” This group includes diligence,

zeal, caretaking, vigilance, punctuality, fidelity, continuity of

effort, willingness to learn, a spirit of co-operation, and a personal

interest in all business affairs. In addition to these virtues, other

positive advantages have been noted by those who have tried the system.

“An appreciable percentage of the occasions of worry, which all large

employers experience, have disappeared,” writes Mr. T. W. Bushill, of

Coventry, England.[314] M. Billon, of Geneva, states as one result of

his experiment, “Superintendence became easy for us, and _from that time

we could, without fear of offending any one, show ourselves exacting in

details to which previously we were obliged to close our eyes_.”[315] The

Peace Dale Manufacturing Company began profit sharing “not to make money

in the positive sense, but to save waste.”[316] This saving of waste is

seen in the efforts to economize time and materials and in the additional

care with which machinery and all appliances for work are used. Various

English firms have been most successful in attaining this end, stating

that they find “increasing care to avoid spoilt work and waste both

of time and material”; that “waste is guarded against”; that there is

care in handling materials, and that “especially waste of raw material

is avoided.”[317] Another gain is found in the identification of the

interests of employer and employees and the consequent harmony between

capital and labor; “the occurrence of a strike in a profit-sharing

establishment is believed to have been a rare event,” says Mr.

Schloss.[318] The advantage to the employer of this identification of

interest is seen in the ability to obtain “a steadier and superior class

of workers”; in the fact that “the knowledge that there is such a scheme

brings all the best workmen” to the firm employing it; that “workers

remain year after year”; and that “it tends to secure and retain the best

workers.” Its good effects on the character of the work are seen when “an

efficient man is very soon pricked up to greater diligence by his fellow

workers”; in securing through it “the maximum of effort”; “in a steady

pulling up all around”; when it “makes the men keener after business and

sharper in keeping down expenses.”[319]

It would seem difficult to introduce the scheme into a business like

that of tea-blending, but a London firm that has practised it thirteen

years states that the effect is “to make the clerks willing to exert

themselves in an especial manner, when the occasion arises, because they

know that if they show themselves unable to cope with the mass of work

to be done, then the staff must be increased; and they do not care to

see their bonus diminished by an augmentation of the numbers entitled to

participation.”[320]

The question naturally arises as to how far these gains reimburse the

employer for the financial cost of profit sharing. The chairman of the

South Metropolitan Gas Company of London writes, “I state unhesitatingly

that the Company is recouped the whole of the amounts—some £40,000—paid

as a bonus since the system was started.”[321] The managing director of

the New Welsh Slate Quarry Company gives it as his personal belief “that

we are recouping every penny of bonus and more;” and similar testimony

comes from others.

Yet this is putting the matter on the lowest plane. The system “converts

the industrial association of employer and employees into a moral

organism, in which all the various talents, services, and desires of

the component individuals are fused into a community of purpose and

endeavor.”[322] A natural result, moreover, is a general elevation in the

standards of morals. Most of all, in an individual way it is of help to

the employee; “to assist a person in improving his condition by his own

efforts is to make a man of him.”[323]

What can be learned from these successful experiences in profit sharing

that will be of value in domestic service? The usual difficulties that

beset the employer of domestic labor are lack of interest, desire

for change, negligence, waste of time, extravagance in the use of

materials, in a word, the absence of the industrial virtues. If these

very difficulties—all of which exist elsewhere—are partially or entirely

obviated by the employer of other forms of labor through the system of

profit sharing, may it not reasonably be expected that they could be met

in domestic service by the employment of similar means?

Domestic service, it is true, is not a wealth-producing occupation,

but it is wealth-consuming probably beyond any other employment. The

profit, therefore, must be negative, that is, economy in the use of

time, materials, and appliances for work. It is in precisely these ways

that profit sharing has been most successful, and the wage system most

unsatisfactory. Under the wage system the employer of domestic labor pays

for time rather than for quality of service, and employers therefore

constantly complain that employees do not accomplish one half as much

as they should, and employees that employers exact twice as much as can

be done. Neither party to the contract under the wage system can have a

true notion of the working value or the money value of time; thus it is

not strange that the one requires more than can be performed, and the

other does less than might be reasonably demanded. The same ignorance and

carelessness prevails in the use of materials. The employer may provide

the best the markets afford, but if the cook has never had brought home

to her a realizing sense of the money value of these materials, she is

not altogether to blame if she fries doughnuts in butter costing fifty

cents a pound, and makes angel food daily when eggs are forty cents

a dozen. The employer may also provide the finest of furnishings for

the dining-room and china closet, but if the maid-of-all-work does not

associate a money value with these furnishings, she uses table napkins

for holders, and carelessly drops fine china into an iron sink. From the

selfish point of view the chief interest of the employer is to keep the

bills down and to get the greatest possible amount of service even at

the cost of the greatest expenditure of human strength; among employees,

it is to do sufficient work to retain a good place, and to use whatever

materials are most convenient.

Mr. Nicholas Payne Gilman has well said, “The deficiency in the daily

wage system as a motive power to procure the desirable maximum of effort

and performance is extreme.” Precisely the same objections that hold

in all other employments to the wage system hold as well in domestic

service. In other occupations it has been seen that the almost universal

testimony of those who have tried profit sharing is that the system

results in economy in the use of materials, care in the handling of

machinery and implements of work, and a feeling of partnership, the

spur of which as a motive “is only excelled in sharpness by complete

proprietorship.” Mr. Gilman sums up the advantages of the system when

he says, “Profit sharing advances the prosperity of an establishment by

increasing the quantity of the product, by improving the quality, by

promoting care of implements and economy of materials, and by diminishing

labor difficulties and the cost of superintendence.” In a word, whatever

arguments can be advanced in favor of profit sharing in productive

industries can be used with equal force in its favor in domestic service.

The application of the principle to the household is simple. It is

possible to allow a fixed sum, as $50, $100, or $500 per month for living

expenses, which shall include the purchase of all food for the table,

fuel, lights, ice, breakages, and the replacement of worn-out kitchen

utensils, and to allow a pro rata amount for guests during the month. If

by care in the use of food materials, fuel, and kitchen and dining-room

furniture, the expenses amount to $45, $90, or $450 per month, the $5,

$10, or $50 saved can be divided according to a ratio previously agreed

upon between the employer and the one or more employees. The cook is

in the position to save the most, and therefore ought to receive the

greatest percentage of the amount saved; but it is a part of the work

of the waitress to be careful of glass and china, of the laundress not

to waste fuel, soap, and starch, and of all, including parlor maid,

seamstress, and nursery maid, not to waste gas, fuel, or food at the

table, and therefore each employee is entitled to a share in the profits.

Thus each keeps watch over the others to prevent undue waste, and the

employees are given a personal interest in the establishment now so

often lacking. In addition to this, it is possible to allow a gardener

and a coachman who have taken special care in the improvement of lawns,

gardens, and stables a small percentage on the annual appreciation of

property. “Comprehension is wonderfully quickened by the payment of a

bonus or two in cash, and there is no more efficient instructor than

self-interest.”

Moreover, it is possible to allow a fixed sum for service, as $18 per

month, out of which the employee may choose to have a small sum spent in

hiring by the day some one to wash windows and clean verandas, or she

may choose to economize her time and strength and do this work herself.

In either case the financial outcome to the employer is the same, while

either arrangement makes the employee a partner in the domestic company

and gives her an active interest in its welfare.

It is possible to apply the principle in still other ways. If the general

servant likes to cook but dislikes other parts of housework, she may

contribute to the Woman’s Exchange and with part of the money received

hire with her employer an assistant to come in a certain number of hours

each day to care for the rooms, the silver and brass, and wait on the

table. It is possible also to give the cook a certain amount of time

for making articles to be sold at the Woman’s Exchange, the employer

furnishing capital and implements of work and receiving a certain share

in the profits. In employment bureaus it would be possible to give a

certain percentage of the profits of the bureau to all employees who have

kept their names on the books of the bureau and remained at least one

year in the place found by them through its agency.

The ways indeed are numberless in which the principle of profit sharing

can be applied; and if the ingenuity and fertility of resource possessed

by so many employers were once turned in this direction, the good

resulting would be incalculable.

Great as would be the gain for domestic service if this principle could

be adopted in private families, the advantage would be if possible

even greater could it be introduced into hotels, boarding houses, and

restaurants, and also the dining-car, parlor-car, and sleeping-car

service. In all hotels, restaurants, and public institutions the waste

is enormous—perhaps proportionately greater than in private families,

largely because as a rule the superintendents of such establishments are

also employees on wages. Ignorance is often the chief cause of waste, and

the best corrective of this ignorance is the experience gained through

profit sharing.

But the greatest advantage of profit sharing in restaurants and hotels,

dining-cars and sleeping-cars, is that through it the feeing system could

be abolished. In all such business enterprises where the feeing system is

established there is in effect a combination of the general public and

the employees of the establishments against the proprietors of them.

Such is the case because the feeing system prevents the proprietors

from receiving a fair amount of patronage unless each employee is feed

for performing the service he ought freely to give and for which he

will presumably be paid by his employer. The money profit in all these

establishments depends largely on the good service rendered by the

employees, and thus it would be possible to divide a positive profit

as well as a negative saving. The feeing system, if it prevails in

any branch of personal service, drags down with it in the social and

industrial scale every other branch of the service. The substitution

of profit sharing in hotels and restaurants and in the dining-car and

sleeping-car service for the system of fees so increasingly prevalent

would do more than any other one thing to remove the social stigma from

domestic service and make of all such employees self-respecting men and

women.

It may be urged against the proposition to introduce profit sharing into

domestic service that few employees are of such stability of character

as to warrant making the experiment. But the great desideratum is to

introduce into the service some principle that will develop the best

qualities of those already in it, that will sift out the worthless and

compel them to undertake unskilled labor, that will draw from other

occupations, where they are less needed, able persons whose natural

tastes and abilities would attract them to this. M. Levasseur is quoted

as saying that of one hundred firms that begin business, ten per

cent succeed, fifty per cent “vegetate,” and forty per cent go into

bankruptcy. The statement characterizes with possibly sufficient accuracy

the result in the case of the establishment of a corresponding number of

households. Could an industrial partnership be formed between employer

and employee, with the agreement to divide, not positive profits, but

negative savings, something might be done to save the forty per cent

who now give up housekeeping and go into the bankruptcy of hotels and

boarding houses, and also to lessen the fifty per cent who “vegetate”

through the employment in the household of obsolete industrial methods.

It may also be said that profit sharing appeals to a selfish motive and

therefore is objectionable. But much of the waste and extravagance in the

household comes from ignorance; profit sharing is one way of teaching the

value of raw materials. The comfortable theory is often entertained that

to be born poor is to be born with a knowledge of all household affairs.

As a matter of fact, there is doubtless far more waste and extravagance

in the households of the poor than in those of the rich. But extravagance

is in reality a relative term; “tenderloin steak for breakfast and rump

roast for dinner,” which may be simple fare in the household of the

employer, becomes an impossible luxury to the employee in such a family

when she goes to a home of her own. Profit sharing would be of value

in the household not because it would appeal to a selfish motive, but

because it would teach the value of materials used and incidentally do

something to prevent this prevalent waste and extravagance.

Neither of these objections to profit sharing holds in the face of all

that can be said in its favor. The general arguments for it are many.

It is usually assumed that the interests of the employer and those of

the employee are antagonistic. The introduction of profit sharing could

easily prove that this assumption in domestic service is wrong, as it

has already made similar proof in other occupations. If the employers

of other forms of labor find themselves relieved of much of the worry

and friction that have previously resulted from the mutual relation of

employer and employee, it would seem reasonable to expect a like result

in the household. If it has been found elsewhere that the extra services

called out, and the manner in which they are called out, constitute an

invaluable educational discipline, and promote zeal, efficiency, and

economy, a similar result might be looked for here. If other employees

have learned through it to be careful of their methods of work, punctual

in the performance of their duties, and economical in the use of

materials; if it has become “a moral educator, and substituted harmony

and mutual good-will for distrust and contention in the relations of

employer and employee,” then, indeed, may it not be considered, not as a

panacea, but as one measure among many that may be of help in lessening

some of the serious difficulties that now attend domestic service?

At the present time a public discussion of domestic service meets

with little else but jest and ridicule, while in private life the

social stigma is cast on all engaged in it, as is the case in no other

occupation. To attempt to dignify labor by saying, “we must dignify

labor,” savors of the old problem of trying to raise one’s self by the

boot-straps. No concrete method by which this is to be done is ever

suggested, and until some plan is adopted by which the personal dignity

and independence of the employee is recognized, and his industrial and

financial independence is secured, domestic service will continue to be

under the industrial and social ban. When this improved condition is

brought about, there will be established what Professor Jevons considers

the best of all trade-unions—that between the employer and employee.

It must be frankly said that the plan of adopting profit sharing in

the household is a theoretical one; and to say it is “mere theory” is

often considered an unanswerable argument with which to meet every

new proposition. But theory lies at the basis of all successful

action; difficulties have come in household service often because

it has been conducted without theory—in a short-sighted, haphazard,

hand-to-mouth fashion. It is known, however, that the experiment has

been tried successfully in a private family, and this perhaps saves the

proposition from the charge of being only theory. It has been tried by

Mrs. X, a university graduate, after one and a half years’ experience

in housekeeping. The experiment was made in a college town where the

cost of provisions was rather above than below the average. The family

comprised four adults, including the Irish maid rather above the average

in intelligence and ambition. The plan provided for an allowance of $40

a month for living expenses, including groceries, meats, fish, poultry,

butter, milk, cream, ice, candles, kerosene oil, and incidental expenses.

The last included breakage and the replacement of worn-out kitchen

utensils. The best materials of all kinds were purchased, and practically

nothing was ever thrown away. The food was simple but abundant. The

co-operation between employer and maid consisted on the part of the

employer in planning the menu, especially the making up of left-over

materials, the pricing of all articles in the market, and keeping the

accounts accurately; the maid gave all orders and carried them out. The

profit sharing consisted in dividing equally between employer and maid

whatever had been saved at the end of the month out of the $40 allowed

for running expenses. The results of four months’ experiment were as

follows:

Average monthly expenses before profit sharing began $41.25

Expenses first month after 36.74

” second ” 43.75[324]

” third ” 41.58[325]

” fourth ” 36.28

The plan for carrying on the dining association using the Memorial Hall

of Harvard University is essentially one of co-operation, and contains

some points that could be tried with advantage elsewhere. The steward

receives a fixed salary and in addition a small sum each week for every

person who boarded that week at the hall; but this “head money” is

proportionately diminished as the average weekly price of board exceeds

the amount agreed upon.

At Placid Club, a social club established in the Adirondacks, all fees

are prohibited, and the rule is strictly enforced; but the past season

(1896) a dividend of ten per cent on the wages received was declared out

of the profits of the club, and this was given to all house employees

who had remained throughout the season and whose services had been

satisfactory to the manager. The financial success of the club depended

largely on the efficiency, good-will, and ready co-operation of its

employees, and the dividend declared was in recognition of this fact.

Beginnings in a small way have been made elsewhere.[326] They are indeed

but beginnings, but they seem to indicate one direction in which progress

is possible.

Domestic service · 第 14 / 18 章