Labour Share Fraction
From FairShares Wiki 3.x
The Labour Share Fraction is the share of Surplus paid to Labour Shareholders.
In early versions of FairShares, the Labour Share Fraction was:
- 0.5 in Worker Co-operatives and Employee-Owned Social Enterprises
- 0.35 in Social Enterprises and Social Co-operatives
From V3.0 onwards, the fraction is set during the creation of rules in the FairShares Rules Generator, and this provides for a range of choices from 0.30 to 0.45. The V3.0 rules generator does not permit rules to specify more than 0.4 for Investor Shareholders, and a sets the minimum payout to Labour and User Members at 60%. Typically, 70% or higher is paid out to people active in FairShares companies, and 75% of higher in FairShares cooperatives.
The total amount paid out to Labour Shareholders is called the Labour Share.
Return to the FairShares Glossary.