Profit Sharing in Industry

Archive Report

Innovations in Labor Remuneration

Employees of the American Motors Corporation recently received their first annual allotment of benefits under a profit-sharing arrangement agreed to by the company in negotiations with the United Automobile Workers in 1961. The plan, first of its kind in the automobile industry and first to be established under a labor contract with so large a corporation, is being watched closely as holding a possible clue to future patterns of wage policy in major industries. In the opinion of some observers, the scheme constitutes a promising approach to satisfaction of labor demands by non-inflationary means. Others view it as no more than a noteworthy addition to thousands of other profit-sharing arrangements in American industry.

Which of the foregoing contentions is the more valid ...

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