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Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - cbelt3 - 12-16-2013
http://www.pbs.org/newshour/rundown/2013/12/the-miracle-of-profit-sharing-year-65-and-still-no-layoffs.html
"80: uninterrupted years of paying an employee bonus (i.e. profitable every year since 1934)
$33,029: average 2013 bonus per U.S. employee (roughly 3,000 employees)
$81,366: average 2013 total earnings per U.S. employee (wages or salary + bonus)
$100.7 million: total pre-tax profit shared with employees, Lincoln's largest bonus pool ever
0: number of layoffs in 2013 (that makes 65 years without any layoffs)
#1: Lincoln Electric remains number one in the global marketplace in its industry. (As "LECO" on the Nasdaq exchange, its stock is currently at an all-time high.)
These figures once again provide convincing and reassuring evidence that with an unwavering commitment to respecting employees by offering the opportunity to significantly share in the profits of the firm, while demanding their very best, it is possible to run a very profitable, very large, technologically superior multinational business based in North America while also honoring a firm's obligations to its customers, investors and society at large. Business need not be a zero-sum game, a delusion embraced by far too many, especially in the past few years.
"
Why don't other companies work this way ?
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - Black - 12-16-2013
Someone needs to deconstruct this.....there's got to be something "artificially" bolstering this company.
Government contracts?
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - cbelt3 - 12-16-2013
Black wrote:
Someone needs to deconstruct this.....there's got to be something "artificially" bolstering this company.
Government contracts?
Nope. Welding products. Industrial, commercial, world wide. Some government contracts. With pretty much any government except the "No trade" ones like Iran and North Korea.
If it involves sticking pieces of metal together, they do it.
The only thing "artificially bolstering" the company is a committed workforce, loyalty in both directions between the work force and management, and a culture developed by one of the founders. In the 1930's. Hard work IS its own reward.
Note, however, that perhaps 80-90% of new hires don't last the probationary period. They usually quit. In this case the culture selects for people that fit it.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - mattkime - 12-16-2013
>>Note, however, that perhaps 80-90% of new hires don't last the probationary period.
why?
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - cbelt3 - 12-16-2013
mattkime wrote:
>>Note, however, that perhaps 80-90% of new hires don't last the probationary period.
why?
The way things work in a piecework system, you get paid for every part or assembly you make. IF the part meets quality requirements. If you don't work, you don't get paid. There are considerations for when the worker is idle because the machinery is broken, or raw materials are not available, etc... the worker gets paid an hourly wage during those times.
And even the hourly workers work hard and expect everyone else to work hard. People that have a weak work ethic don't fit, and don't last. There is a monthly review at 1, 2, and then 3 months. If you're not working hard, you don't get a good review. If you don't get a good review, you're out.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - Black - 12-16-2013
cbelt3 wrote:
[quote=Black]
Someone needs to deconstruct this.....there's got to be something "artificially" bolstering this company.
Government contracts?
Nope. Welding products. Industrial, commercial, world wide. Some government contracts.
I know what Lincoln Electric does, thanks. I've been on their newsletter ever since shopping for a heavy duty MIG welder back in '06 or so.
So "nope" to government contracts, but "some government contracts."
Got it.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - cbelt3 - 12-16-2013
Black-
And government contracts are a major PITA for industrial / commercial manufacturers. They usually don't make much profit on them. Documentation is unbelievable. Far in excess of what is required by, for example, the nuclear power industry.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - August West - 12-16-2013
These figures once again provide convincing and reassuring evidence that with an unwavering commitment to respecting employees by offering the opportunity to significantly share in the profits of the firm, while demanding their very best, it is possible to run a very profitable, very large, technologically superior multinational business
Didn't read the link, but I am for the most part in agreement with cbelt on this. My one minor quibble is that if you create the necessary organizational culture, you don't have to demand their very best, it becomes an implicit and desirable outcome for the employee.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - cbelt3 - 12-16-2013
August-
If you don't demand performance, the low performers can become a sustained cancer on the organization. I've seen it happen. So the winnowing process at the start means you only hire and keep the performers. People whose personal work ethic matches that of the company.
Re: Corporate Responsibility: 80 years of profit sharing, 65 years of no layoffs. - Lemon Drop - 12-16-2013
that's an admirable record, but this company does not pay health benefits, correct? employees are expected to pay them out of the bonus? So in the wake of Obamacare now that they have to provide this benefit will they take it out of the bonus?
And do they allow unions or has it ever been attempted?