What Is Major Step?
Major Step is an organization of business owners who believes in the importance of two major
1. Having Spiritual Program in the workplace during working hours.
It is more or less a one hour weekly Spiritual program in the workplace during working hours. In our company, we use the Sunday Mass readings as our point of discussion and sharing. We do it usually on Mondays, first working hour in the morning.
2. Sharing of profits to employees.
Sharing of profits to all employees is rooted in this Rerum Novarum principle,”Each needs the other. Capital cannot do without employees, nor employees without capital,” which means, if all we have is capital, no employees, we cannot operate the business. Similarly, if all we have are employees, no capital, we cannot also operate the business. Each needs the other.
From this principle we develop this internal accounting system: Sales minus all expenses, salaries, and inflation maintenance allowance equals net profit for sharing. (Take note, the inflation maintenance allowance is arrive at by multiplying capital or owners equity by the inflation rate for the year). Now, net profit for sharing times 50% equals employees share. Employees share minus all general benefits already spent or enjoyed by the employees, such as company contribution to the Social Security System, retirement benefits, medical health benefits, Christmas party, uniforms, excursion to the beach, etc. equals net cash for distribution to the employees. Take note that if the benefits is not of general nature, meaning not applicable to all departments, such as the salesmen’s commissions or incentives, they are not to be deducted from the share of the employees.
There are two bases for individual employee’s profit share, namely: level of responsibility and performance. Also, if you are the owner of the business and works in the company as the general manager, you are also entitled to a salary as an employee and a share in the employees’ profit sharing.
Rerum Novarum is a social writing of Pope Leo XIII in 1891.