ABSTRACT
The idea of setting up some kind of clearing system for wages as between high- and low-profit enterprises to provide reinforcement for the solidarity pay policy does, or at any rate did, evoke a sympathetic response in trade union circles. Many proposals have been put forward for countering the concentration of wealth and its accompanying power, but their efficacy can be questioned. Profit-sharing schemes which incorporate the right for the individual to dispose of his shares have often been proposed as a genuine alternative to employee funds, but the trade union movement has steadfastly rejected this route as irreconcilable with solidarity in wage policy. It is correct that the recent reforms in labour legislation do involve a very major step on the road to economic democracy. The modus operandi of employee investment funds can be described quite succinctly. Profit emerges as the difference between a firm's receipts or income and its costs.
