Melons for Workers

One industry in which the two leading companies Both practice profit sharing is electrical equipment.

For a majority of its 67,000 employes, last week big General Electric Co. cut a $4,750,000 holiday melon. The melon consisted of two parts. Under its profit-sharing plan,* instituted in 1934, employes of five or more years' service shared $2,400,000 (compared to $556,800 last year). Under the three-year-old plan of adjusting wages to the cost of living (U. S. Department of Labor Index), employes shared another $2,350,000 (almost $1,000,000 less than 1938). Together, the two bonuses add 5-75% to employes' earnings for 1939's last six months.

G. E.'s good news came just ten days after its potent Pittsburgh competitor, Westinghouse Electric & Manufacturing Co., announced a 6% November wage bonus, compared to 4% in October for its 45,000 employes. Westinghouse's bonus system, adopted in 1936, boosts wages 1% for each $60,000 by which average monthly earnings for the previous three months exceed $600,000, cuts them 1% for every $60,000 below this par. Westinghouse's profit-sharing payments to Nov. 1 this year: $3,075,327.

Neither firm has found profit sharing unprofitable. G. E.'s nine months' net was $25,022,631 (up 42.5% over 1938). Westinghouse's earnings were up 46% over last year to $9,069,810.

* Discretionary with directors, the plan gives employes up to 12 1/2% of earnings available for common stock dividends after deducting 8 % of the stock's average book value.

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