Share the profits!

[Uncle Joe]

(snip)

Shortly thereafter, the Bureau of Labor Statistics issued a report on profit-sharing, suggesting it as a way to reduce the “frequent and often violent disputes” between employers and workers. Profit-sharing gave workers an incentive to be more productive since the success of the company meant higher profits would be shared. It also reduced the need for layoffs during recessions because payroll costs dropped as profits did.

(snip)

But profit-sharing with employees has all but disappeared in large corporations, which since the start of the 1980s — and the advent of corporate “raiders” (now private-equity managers) — have focused on maximizing shareholder returns. Sears phased out its profit-sharing plan in the 1970s (and filed for bankruptcy protection in 2018).

Yet profit-sharing with top executives has soared — as big Wall Street banks, hedge funds, private-equity funds, and high-tech companies have doled out huge amounts of stock and stock options to their MVPs.

The result? Share prices have gone into the stratosphere while wages have barely risen. Researchers have found that increases in share prices before the late 1980s could be accounted for by overall economic growth. Since then, a large portion of the dramatic increases in share prices have come out of what used to go into wages.

(snip)

https://robertreich.substack.com/p/share-the-profits

[multigraincracker]

1. Workers as owners solution

might be the best answer for quality and efficient production.

My guess.

[Snoopy 7]

2. 1976

That's the year I started working full time. And I even remember doing profit sharing and we only received it if the quality of the product was good and if the the work hours were efficient. Companies made great leaps in the ratings of the product and everyone was happy. The company with the product and us with the financial gains. But it all ended when the crooks/grifters took over the boards of companies, many of which have the same person/grifter sitting of various company boards. They figured why share because they could keep the money for themselves. Yea it was a frog in the hot water effect. As we slowly lost the bonuses, many excuses were made of why no bonus this year, then we saw our hours increase without a pay increase. Then the same board members figured a way to not pay overtime. And the water slowly boils...

[multigraincracker]

3. I worked at my UAW job for 30 years

starting in 1972. Our plan got better and by the last 5 years we were getting over $5K in good years. Bad years had more to do with the economy and it's effect on car sales. It would have worked better if stock was included every year regardless of sales.

This is just one of my opinions.

[MissMillie]

4. The right touts "trickle-down" theory, but then does everything it can

to prevent "trickle-down."