The Profit Sharing Economy

To require implementation of the statutory provisions concerning profit sharing

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Some have proposed limiting the tax deduction for performance based pay to firms with broad based profit sharing programs. But, although this approach might encourage profit sharing with more workers, it would continue to provide companies with significant tax breaks for huge compensation packages for top executives.

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Second, workers are concerned that profit sharing may come at the expense of wages, with the substitution of uncertain profits for certain wages resulting in lower overall compensation. Effective profit sharing schemes must be structured to prevent this outcome, and strong collective bargaining rights can help provide the necessary safeguards.

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Indeed, workers in companies with inclusive profit sharing and employee ownership programs typically receive significantly higher wages than workers in comparable companies without such arrangements. About half of Fortune s list of the 100 best companies to work for have some kind of profit sharing or stock ownership program that extends beyond executives to include regular workers.

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The Board considers, however, that the need for creation of local benefit schemes would not arise, just as it had not arisen for benefits such as bonus, sharing of profits and loan facilities.

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International Corporations should negotiate with the indigenous communities a just and fair profit sharing arrangement, prior to signing of any kind of agreement, and with full disclosure of the projected profit and complete development plans for the relevant project, to ensure that the peoples concerned receive an equitable profit share and or compensation package.

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Lack of inclusion in community development and such unevenness in the sharing of resources and profit demonstrate the ongoing injustice of cultural domination, an insidious form of poverty.

Senior positions in profit and non profit sector

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The Tribunals therefore propose the introduction of a retention bonus.

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