Labour Share
The Labour Share of Surplus is calculated using the Labour Share Fraction defined in Clause 40, and can only be changed by Special Resolution in General Meeting.
The V1.x default for the Labour Share Fraction was:
- 0.35 in Social Enterprises and Social Co-operatives
From V2.x, and explicitly in V3.x, the default of the Labour Share is 0.35. The User Share is calculated and invested in projects that benefit Users rather than the workforce, even in a FairShares Worker Cooperative. This meets the ICA Principle 7 - Concern for Community.
The Labour Share is calculated as follows:
[Surplus] x [Labour Share Fraction]
Each member's proportion of the Labour Share is allocated as follows:
[Labour Share] x (Member’s Labour Shareholding / All Issued Labour Shares).
For example, if the Labour Share is £11,000, and a member has 10 Labour Shares of 180 in issue, their share would be:
11,000 x (10/180) = £611.11
See also:
Return to the FairShares Glossary.
