Profit Sharing and Union Strategy

Archive Report

New Factor in Collective Bargaining

The demand of the United Automobile Workers that the country's manufacturers of motor vehicles share profits with their employees, and with their customers, strikes a new note in employer-union relations. Profit sharing is not a stranger on the American business scene; such arrangements were first introduced more than a century ago, and thousands of profit-sharing plans are in operation today. The unusual thing about the U.A.W. proposal is that a labor union is making it.

Profit sharing up to now has rarely been a subject of collective bargaining. Arrangements for splitting profits with workers have been instituted by employers and continued or discontinued at their pleasure. Until U.A.W. President Walter P. Reuther outlined the union's 1958 bargaining proposals, no labor leader ...

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