A FAIR REWARD.

Auckland Star, Volume LVII, Issue 199, 23 August 1926, Page 8

A FAIR REWARD.

FOR EXTRA OUTPUT,

PREMIUM BONTS SCHEME.

An indication that at some future date a premium bonus system, will be offered to railway employees is given in the latest issue of the "Railway Magazine" by Mr. E. T. Spidy, production engineer. "'The question of rewarding labour for increased output is one that concerns all modern industries,' , comments Mr. Spidy. "Modern industrial managements realise that, in absolute fairness to the men, there needs to be some system whereby they may pay a man for that extra output that he is capable of giving, if there is the extra incentive there fur him to give it. The workman, on his side, knows, that very often he could turn out more output if he wanted to, but feels that, as there is nothing in it for him, there is no reason why he should do more than a fair day's work, as we all call it. The question is, 'How can the difficulty be overcome?'

"I propose to put before you the principles and operation of such, systems, bused on my own experience, so that the subject may become familiar to you, because at some future date such a system will lie offered to you. . . . The premium system lias boon adopted, by most of the modern factories to replace piecework, because it is fairer, it possesses advantages to the meu and. also to the factory, and it docs away with the old rate-cutting trouble that killed the old piecework systems. This is the premium system. The whole scheme is handled in terms of time —not money. The operator is 'allowed' a certain 'time' to do definite work, and he is paid, as a bonus, one-half of the time he saves, at his own regular rate. For example: Suppose the allowance for turning tyres was one hour per pair; that would be equivalent to eight pairs in eight hours. Supposing the operator turned out ten pairs in eight hours: lie would save two hours, for which ho would be paid a bonus eijiial to one hour's pay at hits ordinary rate. The whole of the operator's work for the period is totalled, and if no bonus is earned, the regular hourly wages are paid. The slate is cleaned; there are no penalties, no debts. Hourly wages are, of course, always guaranteed. The method of setting times is quite different under this system; it is more liberal than is possibje under piecework, and at the same time it offers greater incentives to the men."'

The writer asks that judgment be not passed on the scheme yet, as it is not ready to be launched. A full explanation later is promised.