A variety of factors influence the firm’s particular kind of compensation plan or mix of plans generally payment plans based on individual output, which provide the strongest incentive for individual effort and most closely tie pay to performance. While these features would seem to be attractive to both workers and firms the use of traditional piecework pay plans has decreased which is good for a blue collar worker.
According to the management a major consideration is that piecework plans often fail to deliver the anticipated increases in production because workers collectively restrict output fearing that increased production will only cause management to raise the output quota - we here in why did you join the union agree with that.
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