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UNITED STATES DEPARTMENT OF LABOR
L. B. SCHWELLENBACH, Secretary
B U R E A U OF LA B O R S T A T IS T IC S
EWAN CLAGUE, Commissioner

COLLECTIVE BARGAINING PROVISIONS
Incentive Wage Provisions;
Time Studies and Standards of Production

F or sale b y the Superintendent o f Documents, U. S. Government Printing Office
W ashington 25, D. C. - Price 25 cents




Letter o f Transmittal

U nited States D epartment of L abor,
B ureau of L abor Statistics ,

Washington 25, D. C., April 1, 1948.
T h e Secretary

of

L abor :

I have the honor to transmit herewith the third bulletin in the series on
collective bargaining provisions. The report consists of two chapters: (1)
Incentive Wage Provisions, and (2) Time Studies and Standards o f Production*
and is based on an examination of collective bargaining agreements on file in
the Bureau. Both chapters were prepared by, and under the direction of*
Abraham Weiss, of the Bureau’s Industrial Relations Branch, Boris Stern*
Chief. James C. Nix assisted in the preparation of the report.
E w a n Cuague, Commissioner.

Hon. L. B. Schwellenbach ,
Secretary of Labor.




Preface
A s early as 1902 the Bureau o f Labor Statistics, then the Bureau o f
L abor in the Departm ent o f the Interior, recognized the grow ing
im portance o f collective bargaining, and published verbatim the bitu­
m inous-coal m ining agreement o f 1902 between the Associations o f
Coal M ine Operators o f Pennsylvania, O hio, Indiana, and Illin o is and!
the respective districts o f the U nited M ine W orkers o f Am erica.
Since 1912 the Bureau has made a system atic effort to collect agree­
ments between labor and management in the leading industries and
has from tim e to tim e published some o f those agreements in fu ll or in
summary form in the M onthly Labor Review .
The first bulletin entirely devoted to collective bargaining agree­
ments was published in 1925 under the title “ Trade Agreem ents in
1923 and 1924.” Sim ilar annual bulletins were published in 1926,1927,
and 1928. These bulletins analyzed only outstanding agreements
affecting certain industries and certain skilled crafts in which collec­
tive bargaining has follow ed a more or less established pattern.
N o bulletins in this field were published by the Bureau between 1928
and 1942— a period during which collective bargaining first lost ground
in the depression and then made rapid strides follow in g the enactment
o f the N ational Labor R elations A c t in 1935. T he grow th in tradeunion membership from fewer than 4,000,000 workers in 1935 to more
then 10,000,000 in 1942 not only resulted in a large increase in the
number o f collective agreements covering industries hitherto not in ­
cluded under collective bargaining, but also extended the scope and
area o f bargaining in individual industries. In recognition o f this
development, the Bureau’s 1942 report on union agreements (B ulletin
N o. 686) dealt w ith provisions and clauses on particular labor-m anage­
ment problems rather than w ith the agreements o f each union or in­
dustry separately.
T he substance and character o f collective bargaining agreements
change continuously, and m any o f the clauses and provisions covered
in B ulletin N o. 686 underwent significant changes during the war
emergency, as a result not only the norm al processes o f collective bar­
gaining but o f the decisions o f the N ational W a r Labor B oard.
problems m eant new clauses and new provisions.

New

T he B oard also gave

added im petus to certain form s o f union security, and to certain prac­
tices, now deeply imbedded in the entire field o f labor-m anagem ent
relations.



m

IV

PREFACE

T he liquidation o f the B oard, and the renewal o f emphasis on free
collective bargaining after V J -d a y , led to a tremendous increase in the
dem and fo r inform ation on specific current provisions in agreem ents.
U rg en t requests came from em ployers and unions, from the U nited
States Conciliation Service, and from m ediators and arbitrators en­
gaged in settling or preventing labor-m anagem ent disputes.

I t was

largely in response to these requests that the Bureau o f Labor Statistics
undertook to revise and bring up to date the m aterial on union
agreem ents.
In this revision tw o significant departures have been m ad e: (1 ) A c ­
cum ulation o f data has made possible the use o f a larger sam ple than
w as possible heretofore. (2 ) The inform ation is being released in a
series o f small bulletins, each stressing a m ajor area or significant prob­
lem o f collective bargaining.

Thus the m aterial fo r each m ajor prob­

lem can be published as rapidly as finished w ithout w aiting u ntil all
o f the subjects o f collective bargaining are analyzed. I t w ill have the
advantage o f greater flexibility in handling specific requests fo r m a­
terial from em ployers, unions, and the public.

Some clauses are more

or less stable and undergo relatively m inor changes even over a con­
siderable period o f tim e and therefore need only occasional revision,
whereas others undergo rather rapid change. A lso , as new issues de­
velop, it w ill be possible to add new bulletins to the series, w ithout
revising those already published.
T he clauses used are designed to facilitate, but not to condition, the
bargaining process. No special attem pt has been made to determine
the prevailing industry practice or the m ost frequently used p rovi­
sions. The clauses are presented, not as m odels, but as a source o f re f­
erence fo r those who participate in collective bargaining negotiations,
b y m aking available to them a wide variety o f provisions on the specific
subjects under consideration. A n index o f a ll the contract clauses
quoted, w ith a b rief description o f each clause, is appended to each
report.
T he present report deals w ith provisions fo r incentive wages, and
w ith tim e studies and standards o f production.

T he other bulletins

in this Collective B argaining Provisions series which have been
published are as fo llo w s:
9 0 8 -1

U nion-Security Provisions.

9 0 8 -2

V acation s; H olidays and W eek -E n d W o rk .




Bulletin N o. 9 0 8 — o f the
3
United States Bureau o f Labor Statistics

Contents
C h a p t e r I .— I n c e n t iv e W a g e P r o v isio n s
Introduction_________________________ ______ ___________________________
Regulation of method of wage payment: Clauses 1-34__________________
Union participation in establishing or changing incentive rates: Clauses
35-62__________________
Safeguards on earnings_________________________________________________
Protection against rate cutting: Clauses 63-83______________________
Guaranteed minimum earnings: Clauses 84-97 --------------------------------Restrictions on temporary incentive rates: Clauses 98-113__________
Guaranteed earnings under special conditions___________________________
Down-time: Clauses 114-129______________________________________
Faulty materials: Clauses 130-132_________________________________
Break-in time under group incentives: Clauses 133-139____ _________
Special work: Clauses 140-151_____________________________________
Period for computing incentive earnings: Clauses 152-155_______________
Equal opportunity under the incentive plan: Clauses 156-157___________

Page
1
4
9
13
18
22
25
27
28
31
31
33
35
35

C h a p t e r I I .— T im e S t u d ie s a n d Sta n d a r d s of P ro d u ctio n
Introduction___________________________________________________________
Union participation in time studies and in setting production standards:
Clauses 1-43_________________________________________________________
Union safeguards on timing_____________________________________________
Selection of workers to be timed: Clauses 44-50____________________
Maintenance of normal operating conditions during time study:
Clauses 51-53___________________________________________________
Time-study allowances: Clauses 54-60_____________________________
Protection against secret or concealed time studies: Clauses 61-72_
_
Size and composition of crews: Clauses 73-83___________________________
Management safeguards: Clauses 84r-104_________________
Index______ ________




v

37
38
48
49
59
59
52
53
55
61




Collective Bargaining Provisions
Incentive Wage Provisions; Time Studies and
Standards of Production
C h a p t e r 1 .— I n c e n t i v e W a g e P r o v is io n s

Introduction
A n incentive wage plan is a method o f wage paym ent by which
workers receive extra pay fo r extra production. In establishing wage
incentive plans, consideration m ust be given t o : (1 ) the base rate fo r
the jo b ; (2 ) the'am ount o f work required to earn the base ra te; and (3 )
the relationship between extra work above the base and extra pay
fo r the extra perform ance.
Incentive wage plans are designed to encourage the fu llest possible
use o f individual ability and thereby to increase individual produc­
tiv ity . They recognize individual capacity and make provision fo r
its measurement and remuneration. B asically, such a plan enables
workers to increase their earnings by exceeding specified standards o f
output. I t establishes a norm o f output or productivity per m an­
hour and provides fo r bonus wage paym ents on output in excess o f this
norm .
A lthough incentive m ethods and particularly piece rates are m ost
easily adapted to standardized, repetitive labor operations, the use o f
such methods has not been confined to a homogeneous group o f indus­
tries, whether considered from the point o f view o f products, produc­
tion processes, or type o f labor em ployed.
Incentive wage plans vary from a sim ple price-per-piece program
(piecework) to a very intricate and com plex m ethod o f calculation.
A n employee’s earnings under an incentive wage plan m ay be geared
directly to his own productivity, to the perform ance o f a sm all group
or team o f which he is a part, or to the perform ance o f the entire m ill,
plant, or shop.

T he plans m ay vary from a relatively haphazard,

rough estimate o f a reasonable rate per unit o f production to a pro­
gram resulting from years o f careful break-dow n, analysis, and tim e
study by industrial engineering methods.
T he sim plest form o f incentive wage paym ent is straight piecework,
whereby workers are paid a fixed amount per piece produced.

U nder

more complex incentive wage systems, workers receive a base rate and
an additional sum fo r each added unit or piece produced above an estab­



1

2

INCENTIVE WAGE PROVISIONS

lished norm or standard o f production. M ost plans establish a direct
relation between extra pay and above-standard production; others, less
frequently, pay less per piece fo r extra production than fo r norm al
production.
U nlike individual incentive plans, under which individual earnings
fluctuate w ith individual output, group incentive plans tie an in ­
dividual’s earnings to the output o f the group as a whole. Piecework
plans are sometimes converted into group incentive plans by the pool­
ing o f individual earnings.

Bona fide group bonus plans are generally

established fo r jobs on which measurement o f individual output is
difficult and the incentive earnings are based on the perform ance o f
the group as a whole. Groups m ay vary in size from tw o to several
hundred.

In this type o f incentive plan careful provision is usually

made to protect group earnings against decreases due to the low pro­
ductivity o f new or inefficient workers.
A group incentive plan on a plant-w ide scale came into prom inence
during the w ar. T his type o f plan is usually easier to install and
sim pler to adm inister than m ost o f the individual and group plans.
In general, under such a plan all employees in the plant receive a
percentage bonus fo r the plant output above standard. The standard
is usually expressed in physical term s, e. g ., pounds o f aircraft per
m onth, number o f cars per year.
T he apparel trades, including clothing, shoes, hats, and m illin ery,
have long been characterized as “ piece rate” industries. M uch o f coal
m ining is on a tonnage basis. In the rubber, glass, and electricalproducts industries, the “ point” incentive system s, such as “ standard
hour” or “ measured day rate” and others, have been w idely introduced.
Construction, printing, and the service trades, on the other hand, are
examples o f industries where tim e rates prevail.
A lth ou gh m any unions have traditionally opposed incentive wage
plans in principle, there is a wide divergence in union attitudes tow ard
them .

U nions generally appraise the situation in their industry and

their position reflects and is conditioned by the problem s they find in
each case.

In m any plants collective bargaining has substantially

m odified the incentive plans, w hile in other cases the unions have
hedged existing incentive plans w ith safeguards and guarantees fo r
better protection o f the workers.
M uch o f the opposition o f workers to incentive plans is due to past
experience with rate cutting and the speed-up.

The claim has been

made that whenever workers became adept at an operation and in ­
creased their output, and thereby their earnings, management w ould
re-tim e the job and cut the rate fo r the operation so th at workers
turned out more w ith no corresponding increase in pay.

Piece rates

were sometimes lowered w ithout clear justification, or on the ground




INTRODUCTION

3

th at some adjustm ent in machinery or process had warranted a
re-tim ing o f the work. Even where rate changes were justified by some
change in operations, workers often fe lt that a more than proportionate
reduction in rates had been made. M anagem ent also would re-tim e
jobs after workers had h it their stride and then set the new, high
production level as the norm al standard for base pay, resulting in a
speed-up.
O ther reasons fo r worker antagonism to wage incentives include:
General distrust o f the im personal nature o f tim e study m ethods; fear
o f loss o f jobs resulting from expanding output per m an ; dilution o f
skills caused by the break-down o f crafts into sem iskilled operations;
com petition among workers and variations in earnings, leading to
sp lits and divisions tending to break up the cohesiveness o f the
union, etc.
Some union leaders, on the other hand, recognize th at the reduction
o f unit labor costs o f production which m ay be achieved through
incentive wage plans provides them w ith the opportunity to press fo r
higher wages and higher labor income. W h a t these leaders ask is
elim ination o f the abuses which have accompanied these plans in the
past and union participation in their adm inistration. T he complete­
ness and stability o f bargaining relations in industries like m en’s and
women’s clothing and hosiery where piece-rate methods are the rule
would seem to indicate that labor can be quite satisfied w ith such
methods where its interests are properly safeguarded.
Em ployers generally favor incentive wage plans because they are
assured o f a relatively stable unit labor cost and greater employee
efficiency and productivity. I t is unfair to pay the same wage to a
slow worker as to a more efficient one, employers contend, and a system
which rewards the individual worker according to his sk ill and in­
dustry is therefore both m ore equitable and more desirable.
Em ployers often reserve the right to change rates on the ground
that piece rates cannot be permanent and that some flexibility is neces­
sary where continuous changes in product or production methods
take place.

Tim e passes, conditions change, and workers become

more expert at their jobs.

T he cum ulative effect o f m any sm all

changes and im provem ents in process, m aterial, and equipment
m ay be an increase in productivity which renders existing incentive
standards quite inaccurate, even though no single change is im portant
enough to ju stify a rate change.

These continuing changes in factory

techniques and production schedules mean constant strife between
forem en interested in increased production and union-shop stewards
on guard against the “ speed-up.”

Conflict over union standards is

perhaps one o f the greatest sources o f irritation in industry.
7 7 8 3 0 7 ° — 4 8 ------- 2




4

INCENTIVE WAGE PROVISIONS

Collective bargaining agreements include a wide variety o f pro­
visions pertaining to incentive plans. In only rare instances, how ­
ever, do they indicate in fu ll the type o f plan used or the technical de­
tails o f its operation and adm inistration. M ost o f the detailed pro­
visions in the agreements are concerned w ith establishing safeguards
and controls against abuse o f the incentive wage principle.

T he

principal safeguards include: (1 ) participation in rate setting, either
by join t negotiation o f new rates before they are put into effect, or by
appeal through the regular grievance procedure if incentive rates
are found to be unsatisfactory; (2 ) guaranteed m inim um rates and
maintenance o f a norm al incentive differential above the base ra te ;
(3 ) guarantee o f earnings when a worker’s output is reduced through
no fa u lt o f his own, such as machine break-down, transfers at the re­
quest o f managem ent, work on unrated operations; (4 ) assurance th at
rates w ill not be cut unless changed conditions warrant such adjust­
m en t; (5 ) provision fo r com puting extra pay on a daily basis so that
poor days do not reduce extra pay earned on days when the workers
exceed the standard.
E qu ally im portant, where incentive plans are involved, are agree­
m ent safeguards on time study.

(See chapter on “ Tim e Studies and

Standards o f P roduction,” p. 37.)

Regulation o f Method of Wage Payment
W h ere the system o f wage paym ent has been the subject o f dispute
and negotiation, the agreements often contain provisions specifying
the form o f paym ent that is to be used or stipulate the conditions under
which changes are to be made. Some agreements either prohibit the
establishm ent o f any form o f incentive or piecework paym ent or con­
tain restrictions against its reintroduction. Occasionally agreements
provide fo r the outright abolition o f an existing incentive plan or
prohibit its extension to operations presently not covered.
O n the other hand, some unions, after an appraisal o f the situation
in their particular industries or plants, have concluded that incentive
systems are either inevitable or else not objectionable.

T h is attitude

often finds expression in agreement clauses specifically sanctioning
the continuance o f existing incentive plans or the introduction o f new
ones only through join t action, or at least after the union has been
properly consulted.
W h en the incentive wage system is applied to only a part o f the
plant, the disparity in earnings between incentive and nonincentive
workers m ay create unrest and dissatisfaction, particularly where the
day workers service the incentive production employees and work
beside them in the plant.

In accepting the principle o f incentive wage

paym ent, unions have sought in various ways to cope with this problem .



REGULATION OF METHOD OF WAGE PAYM ENT

5

M any agreements, therefore, provide fo r the extension o f incentive
pay to as m any operations as possible, sometimes resulting in plans
which cover both production and nonproduction workers.
Clerical and supervisory workers are very seldom included under
incentive plans, since their productivity cannot easily be measured in
term s o f output.

U nder some agreements these workers are expressly

excluded from the coverage o f the incentive plan.
Sometimes the whole issue o f the method o f wage paym ent or the
type o f incentive plan is subject to review and renegotiation by both
parties. A sh ift from one type o f incentive to another is generally
allowed only by m utual consent o f the company and union.
W hen wages are paid on a tim e basis or a straight piecework basis,
workers usually have no difficulty in determ ining their earnings.
U nder m any incentive plans, however, the com putation o f earnings
m ay be com plicated, and workers often com plain that they have no
w ay o f checking m anagem ent’s calculation o f their p ay. In order
to meet th is objection, agreements sometimes require the em ployer to
furnish incentive workers w ith a daily or weekly statement o f earnings
and an explanation o f the method o f com putation.
Illustrative clauses dealing w ith the regulation o f wage payment
methods fo llo w :
1. Incentive Bystem Prohibited
There shall be no piece, contract, or incentive work by the employees, and all
work performed shall be paid for on an hourly basis.
2. Incentive By stem Abolished
The employer and the union agree that the piecework system heretofore in
effect, shall be abolished upon the execution of this agreement.
3. Union Consent Required
The .employer agrees that it will not institute any piecework bonus or other
incentive system except by mutual consent between employer and union.
4. No Extension of Piecework Except by Mutual Agreement
There shall be no extension of piecework except by mutual agreement.
5. Inauguration of Incentive System by Mutual Agreement
Nothing herein shall be construed to prevent the inauguration of an incentive
plan providing it is mutually satisfactory to the employer and the union.
6. Modification or Establishment of Incentive Plan Requires Joint Approval
In this article are the recognized incentive plans in effect, and before any
changes in these incentive plans are made or new plans established, they will
be agreed upon by the parties.
7. Employer May Discontinue Incentive System at Any Time
Attached hereto as exhibit B is the wage incentive plan of the employer, it
being understood that the institution of this plan is purely voluntary on the part
of the employer and does not obligate the employer to maintain the plan in
existence during the life of this contract or for any definite period of time. Its



6

INCENTIVE WAGE PROVISIONS

provisions have been agreed to by the union with the understanding that so long
as it remains in effect it is not to be changed or altered except in accordance with
the conditions stated in the plan or by agreement of the union.
8. Either Party May Discontinue Incentive System on 80-Days9 notice
On thirty (30) days’ written notice, either party to the within agreement may
cancel the incentive method of payment plan.
9. Continuation of Incentive Plan in Force
The premium or bonus incentive plans presently in force shall continue.
10. Piecework at Managements Discretion
Piecework may be used at the option of the canner, based upon the minimum
wage scale.
11. Employer to Establish Incentive System Wherever Practicable
It is agreed that the company will install a wage incentive plan in all depart­
ments where such a plan is practicable, as promptly as possible. Such incentives
when established may be made applicable to individuals or groups of individuals
depending upon the nature of the work and the number of employees involved
in each department or group.
12. Incentive Plan Extended to Measurable Jobs
All production work which can be measured with a reasonable degree o f accu­
racy and otherwise lends itself properly will be placed on incentive at piece rates
which will provide the employee working 100 percent efficiently the opportunity
to earn the incentive rate for that job classification listed in the schedule of piece­
work incentive rates.
13. Incentive Plan Extended, Provided Unit Labor Costs Hot Increased
All classifications shall be placed upon the incentive system as quickly as possible
whenever the unit cost of labor is not thereby increased.
14. Joint Committee May Request Survey to Extend Incentive Plan to Indirect
Workers
Upon request of the industrial relations committee, operations not now on
incentive but connected with or serving incentive operations shall be studied for
inclusion in the incentive system and a report made to the subsequent monthly
meeting of such committee.
15. Company Survey of Incentive Plan for Indirect W orkers; Application Subject
to Joint Approval
The company will begin a study for the purpose of determining the feasibility
o f an over-all incentive for those employees not covered by direct incentive. I f a
feasible plan is developed it will be put into effect upon approval o f the parties.
16. Incentive Plan Covers Production and Nonproduction Workers (Nonproduc­
tion bonus varies with department output.)
It is understood and agreed that the company will install a wage incentive plan
which will cover both productive and nonproductive classifications * * *.
Each man or woman performing work classified as nonproductive labor shall be
paid at his or her hourly rate of pay. Any bonus earned will be determined by
the percentage of excess over the departmental standard of production in his or
her department for the preceding week.
17. Sliding Group Bonus Plan with Stated Maximum for Indirect Workers
Group bonus plans paying up to 20 percent o f the base rates shall be used
in indirect operations on mechanized molding units 1, 2, 3, and 4 and shall be



REGULATION OF METHOD OF WAGE PAYM ENT

7

based on the number o f molds handled. Workers on these units will receive
when the unit is producing molds at the normal or less than normal rate of per­
formance their regular rate of pay as determined in paragraph 26. As produc­
tion on these units increases above normal, they will be paid additional amounts
in accordance with a scale which shall be published and posted.
18. Temporary Bonus Plan for Nonincentwe Workers Pending Establishment o f
Standards
The company agrees to install a bonus plan for nonincentive workers. As an
immediate plan all regular nonincentive workers will be paid one-third ( Vs) the
average efficiencies o f the incentive workers in each plan. As soon as possible,
probably by [date], a plan based on past records, as distinguished from actual
time study, will be set up. By this plan the workers’ bonus will be determined
by their own efforts rather than those of present incentive workers and this plan
will be substituted for the temporary plan. This plan will start out as a plant­
wide group and later if possible, be worked out for departments. It must be
remembered that this is new and patience and cooperation will be required until
it is worked out.
Incentive workers temporarily doing nonincentive work will draw the same
bonus for this work as the regular nonincentive workers.
19. Savings in Indirect Labor Costs Distributed Among Indirect Workers
All savings in indirect labor costs arising from increased production shall be
distributed pro rata among chargeable indirect labor. Chargeable indirect labor
shall include in any given group all employees who make an actual contribution
to the job or work in that group.
20. All Employees Given Opportunity to Earn Bonus; Group Bonus Plan Preferred
The company will give all employees covered by this contract the opportunity
o f earning a bonus whenever possible, and will wherever possible adopt the group
or departmental bonus plan for the entire department.
21. Supervisory, Clerical, and Office Employees Excluded
In addition to the pay provided elsewhere in this agreement, the association
agrees to pay t o --------- plant employees, as that term is defined in article 1, sec­
tion 1, hereof (all men and women employed by the association at its ------—
plants * * *, excluding supervisory, clerical, and office employees), incentive
pay for above-normal production, in accordance with the formula set forth in
this article.
22. Change to Piecework Payment Through Joint Negotiation
It is agreed when any company member of the [association] elects to work
conveyors on tonnage, footage, yardage or other piecework rates, it shall be
taken up by the company with the president of the district organization or his
representative, to be agreed upon mutually.
23. Time Operations May Be Converted to Piece Operations with Approval o f
Union; Arbitration Provided
All operations now being performed on a time or hourly basis may be con­
verted to a piece-rate operation with the approval of the union, it being agreed
that such approval shall not be arbitrarily withheld by the union. Any dispute
with respect thereto shall be referred to arbitration as herein provided for in
cases of dispute.
24. Change in Method of Payment Subject to Arbitration
Changes in basic methods of pay may be made by mutual written consent o f the
parties or by arbitration award.



8

INCENTIVE WAGE PROVISIONS

25. No Change in Method of Payment Except by Consent of Company, Union, and
Employee
There shall be no change from piecework to day work, or from day work to
piecework unless by mutual consent of the company, the bargaining committee,
and the employee on the job.
26. Employer May Change Method of Payment Provided Hourly Earnings Not
Reduced
The company shall have the right to change basis o f payment from hourly
rates to piece rates or vice versa, provided, that this shall not be done in such a
manner as to result in a reduction in hourly earnings on the operation.
27. Change To or From Individual or Ch'oup Bonus by Mutual Consent
Whenever mutually regarded as desirable and practical, units working under
any incentive system may be changed to or from either group or individual type
o f bonus, as may be determined after fair consideration.
28. Individual Incentive System Used Wherever Possible; Final Decision With
Employer
The employer reserves the right to decide what jobs shall be placed on incentive,
the sequence in which the operations shall be considered and whether or not the
incentive shall be on an individual or group basis. Wherever possible to break
down a job into clearly defined operations, which are not affected by the output
o f preceding or subsequent operations, individual bonus rates will be applied.
29. Type of Incentive Plan—Individual or Group— at Employer's Discretion
There shall be established throughout th6 utensil department incentive plans.
In a few cases individual incentive plans may be adopted, but generally group
plans will be established. The management will, in each case, decide on the type
o f plan to be set up, individual or group.
80. Current Information on Operation o f Incentive System Posted
It is recognized that the extra compensation plan offers the employees an
opportunity to earn, in addition to the hourly wage rates, extra compensation for
more effective work.
The company will continue to post the daily or weekly index of each employee
under the plan and to make available to employees the details of the plan.
31. W eekly Written Computation of Earnings to Incentive Employees
Sufficient written information shall be given all employees on incentive at least
once per week on a job basis so that employees will know how their earnings were
determined. This information shall include job number, or description; number
o f pieces produced; and the amount of money if on piecework, or premium hours
i f on standard hour incentive. Such information shall not be considered as
binding on the employer in respect to the ultimate determination o f the total
amount earned during any one pay-roll period.
This clause shall not be construed to be the cause of change of existing practice
with respect to notification of employees at lesser intervals than 1 week.
32. Employees Informed of Method of Computing Incentive Earnings
Adequate provision shall be made at each of the plants and works whereby each
employee thereat shall be currently informed of his rate of pay, and, in the case
o f an employee who is paid on an incentive basis, o f the method of computing his
incentive earnings.




U N IO N PARTICIPATION— INCENTIVE RATES

9

33. Piece Bates P osted; Translated Into Dollars and Cents
All piece rates shall be posted in the departments affected, and said rates shall
be translated into dollars and cents wherever possible in order to enable the
employees to figure their wages.
34. Employer To Furnish Union Information on Operation o f Incentive System
The company agrees to furnish the union with job description, job evaluations,
and full and detailed information on the operation of the incentive system.

Union Participation in Establishing or Changing Incentive Rates
T he use o f a piece rate or incentive system involves the problem of
determ ining the proper rate per piece or unit o f output or the deter­
m ination o f production standards. Because these rate determ inations
are intim ately connected w ith the workers’ earnings (earnings o f in ­
centive workers depend not only on output but on the rate per unit o f
w o rk ), unions are greatly concerned w ith the method o f such deter­
m ination.

T he degree o f the union’s participation in rate determ ina­

tion is dependent on the relative strength o f the parties and the nature
o f their particular problem s w ith respect to the incentive system .
U nion attitudes toward participation in rate-setting vary. Som e
unions do not wish to participate directly in setting rates, though they
wish to establish certain safeguards on management’s righ t to institute
and change rates, and desire a ready procedure through which to seek
adjustm ent o f unsatisfactory rates. H ow ever, they often do seek ad­
vance notice o f rates, or the opportunity to give inform al prior advice,
with the objective o f correcting im m ediately obvious deficiencies in
the new rate. The guiding principle behind this attitude is that the
acceptance o f a join t role in rate setting is an unwarranted responsi­
b ility which m ay become a burden rather than a boon. Jointly set
rates which the union membership finds unsatisfactory m ay lead to
friction w ithin the union and make it difficult fo r union representa­
tives to handle grievances that m ay arise from these rates. T h is atti­
tude applies only to incentive rate setting and determ ination o f produc­
tion standards, and not to the determ ination o f general wage levels
and wage m inim um s, the establishm ent o f which is regarded by unions
as a join t function.
In some industries, the union shares equally w ith management in
the in itial setting o f incentive rates.

T h is righ t o f advance participa­

tion and o f fu ll union-m anagem ent cooperation is recognized in m ost
o f the agreements in the clothing, m illinery, hosiery, and shoe indus­
tries.

In some cases the agreement contains only the b rief statement

that piece rates are to be a subject o f bargaining during the life o f
the agreement.

In other agreements the join t rate-setting machinery

and procedure are set forth in some detail.




10

INCENTIVE WAGE PROVISIONS

In m ost industries, however, management sets the rate unilaterally,
puts it into effect either im m ediately or after a specific trial period,
and then handles protests over the accuracy or justice o f the rate
through the grievance procedure. O rdinarily this is not expressly set
forth in the agreements, but is im plicit in the established grievance
procedure set up under the management.
Interm ediate between these extremes o f union participation in rate
setting are an increasing number o f agreements which grant the union
rights o f partial determ ination and review o f management decisions.
T his procedure perm its the union to protest any rate considered u n fair
before it becomes effective. B asically, there are two distinct varia­
tions in this type o f procedure.

The first calls fo r both parties to dis­

cuss or consult on a new rate before management sets the rate. A p ­
parently, at this prior discussion the parties attem pt to work out the
rate, with management retaining the right to make the decision. T he
other variation calls fo r management to determine the rate, consult
w ith the union, and then put that rate into effect, subject, o f course, to
union appeal through the grievance procedure. Participation in these
situations, therefore, means that all new and revised rates m ust be
subm itted to the union fo r approval or that the union receive advance
notice o f new or changed rates. In some cases the union m ust approve
the new rate before it can be in stalled ; in others, the rate m ay be in ­
stalled after prior notice to the union which m ay present its objections
through the grievance procedure. In still others, it is not specified
whether join t agreement on the rates is required or whether m anage­
ment is obliged only to hear and discuss worker objections and counter­
proposals and then use its discretion in reaching a final decision. N or
is there clear indication, in some cases, on how long m anagem ent m ust
w ithhold rates fo r purposes o f clarification and negotiation.
Som e agreements set up special procedures fo r setting and revising
rates, specify the conditions under which rates m ay be revised, and
provide that rate changes shall be proportionate to the change in job
content.

Others provide special procedures fo r handling grievances

over incentive rates, some allow ing arbitration o f such disputes, others
excluding them .

Som etimes there is a provision fo r consultation w ith

outside technical advisers.
35. Union Price Committee To Negotiate With Employer
There shall be established in the shop of the employer a price committee,
selected by the workers in the said shop under the supervision of the union, and
all piecework prices shall in the first instance be adjusted upon the premises
of the said shop between said committee and the employer.
36. Union Price Committee; Negotiating Procedure Outlined Under Association
Agreement
Piecework prices shall be settled by the price committee and each employer in
the association, in conferences which are to take place outside o f the regular



U N IO N PARTICIPATION— INCENTIVE RATES

11

working hours o f the shop, and at such times as are agreed upon by the com­
mittee and the employer; such piecework prices so fixed and agreed upon shall
he reduced to writing, and copies of such writing shall be delivered to each
party and to the office of the union and shall be final and binding upon both;
whenever piecework prices cannot be agreed upon by the committee and the
employer, such dispute, in the first instance, shall be referred to a representa­
tive of the union and the association; if such representatives fail to agree, the
matter shall be referred within the forty-eight (48) hours to the impartial chair­
man who shall have the right to take such evidence and order such tests to be
made, procure such data, take such other steps as in his discretion may be neces­
sary in order to reach a just and fair conclusion as to such dispute, and the de­
cision then made by the impartial chairman shall be binding upon all parties
hereto; pending determination o f such dispute, however, all garments shall
be put in production with the understanding that the piecework price thereon
shall be settled and fixed before the next ensuing pay d a y ; workers shall not
be required to make garments if not settled as stipulated above.
87. Piece Rates Adjusted, by Employer and Union Price Committee (No em­
ployee is assigned work for which rate is not settled.)
All piece prices shall be adjusted between the representative of the employer
and a price committee o f three workers engaged in that particular branch o f
work selected or designated by the union. The employer shall not withhold
from the pieceworkers any settled work which may be on hand pending dis­
putes between the employer and the price committee about prices.
No workers shall be asked to work on unsettled work.
38. Union Approval Required Before Piece Rates Put Into Effect
The employer shall furnish a competent time study man to restudy such rates
as are in effect and all new rates. No piecework rates shall be put into effect
unless agreed to by this union.
39. Mutual Agreement on Piece Rates and Bonuses
All piecework rates, incentive pay and production bonuses shall be agreed
upon by the company and the union.
40. Joint Negotiation when Improved Machinery Introduced
If, during the term of this agreement, the company installs new and improved
machines in a department for which piecework rates are hereinabove provided,
which machines permit an accelerated rate of production, company and union
agree to negotiate for the establishment o f a rate therefor other than the rates
herein set forth.
41. Joint Committee to Recommend Rates on New Machinery
During the life of this contract, it is agreed that upon the installation of
new types of equipment not already in use for which no wage rates are now
established, a commission o f two miners and two operators shall be selected by
the joint State executive board; said commission to report its findings and
recommendations to the joint State executive board as quickly as practicable
after appointment. From the report of the Commission, the joint State executive
board shall determine the proper wage rates applicable, and the effective date
thereof.
42. Union Approval Required B efore Rates Are Put mto Effect
Any piecework rates compiled shall be approved by the union representative
before being put into effect.
7 7 8 3 0 7 ° — 4 8 --------3




12

INCENTIVE WAGE PROVISIONS

43. Separate Procedure for Routine, Technological, and Other Rate Changes.
(Management has the right to make day-to-day and technological changes.
The union has the right to protest day-to-day changes through the regular
grievance procedure. It must receive prior notification of technological
changes, discuss them, and have a trial period before subjecting protests
to regular grievance procedure. Changes outside the field of day-to-day
and technological are subject first to collective bargaining, then to the test
of actual operation, and finally to arbitration.)
The employer shall have the right to change or introduce machine processes,
methods of manufacture, to make time studies and work assignments and job
specifications in accordance with sound rate setting practices and principles for
the purpose of insuring the efficient operation of the mill and utilizing the em­
ployees time effectively. The affected employees and management have the duty
and responsibility to cooperate in giving the workload a fair test during the
trial periods. In making changes to effectuate the above it is agreed as follows :
1. Routine Changes:
Routine changes may be made by the company to meet the necessities of its
day-to-day operations; it being further understood that such changes may result
in grievances which shall be subject to the grievance procedure. When a
grievance has been filed concerning the job, job specification will be furnished
by the company upon request.
2. Technological Changes:
(a ) Three weeks prior to the date of installation o f the proposed change,
the company will notify the union on the form now in effect. In case o f an
emergency, the 3 weeks’ provision is not to apply, but discussions o f the pro­
posed change are to take place as soon as practicable, prior to the institution
o f the change. The company will furnish job specifications with the notification,
or not later than 3 days prior to the initial discussion with the union.
(&) Two weeks prior to installation the company will discuss their proposed
change with the union. Two weeks after such discussion the company may
install the proposed change for a 4- to 6-weeks’ trial period (or a longer or
shorter period by mutual agreement) during which the employees will receive
their average hourly earnings for the previous 4-week period, or their actual
earnings, whichever are higher. The company will furnish a summary o f check
studies to the union upon request.
(c)
After the trial period, a grievance, if filed, shall be referred to the grievance
procedure, except that the procedural steps may be expedited by the elimination
o f the time requirements in the first two steps o f the grievance procedure.
3. All Other Changes:
(а ) The company will notify the union 2 weeks prior to installation o f change
on the form now in effect. During the 2-week period, discussion will take place
with the union. At the request o f either party, a 4- to 6-week trial period
(or a longer or shorter period by mutual agreement) will be applied, during
which the employees will receive their average hourly earnings for the previous
4-week period or their actual earnings, whichever are higher.
(б ) The company will furnish job specifications upon request.
(c) The company agrees to make check studies of the job, if requested, and
furnish the union with a summary.
(d ) Changes in methods of payment from hourly or piece rates to incentives
shall follow the procedure specified in this subsection.
(e) Grievances resulting from changes under this subsection may be expedited
as provided for in subsection 2, “ Technological Changes,” o f this section.



UNION PARTICIPATION— INCENTIVE RATES

13

44. Consultation with Union Prior to Rate Change, No Limitation on Employer
The company agrees to consult with the union prior to putting into effect
any change in a piecework rate; this shall in no way be construed as limiting
any of the company’s rights as hereinabove set forth.
45. Discussion with Employees and Union Prior to Rate Change
The company shall discuss contemplated changes in job classification and
incentive rates with the employees affected and representatives of the union prior
to making them effective.
46. New or Changed Bonus Values First Discussed with Union; Differences
Settled Through Grievance Procedure
Before new bonus values or changes affecting the earning capacity of an
employee or group are put into effect, the matter shall be discussed with their
representative, their shop foreman and the head incentive official in the plant,
and upon any failure on their part to reach a mutually satisfactory agreement,,
the matter shall be referred to the industrial relations committee for settlement
with the plant management.
47. Detailed Procedure for Rate Establishment and Adjustment (For both
new and changed jobs, management sets the rate, and consults with the
union in an effort to reach agreement. Management can put the rate into
effect over the union’s opposition, on a permanent or trial basis, subject to
appeal within 90 days. Negotiations on disputed rates are handled through
the regular grievance-arbitration procedure, with any modification retro­
active to the date the employee is assigned to the job.)
It is recognized that changing conditions and circumstances may from time to
time require the installation o f new wage rates, adjustment of existing wage rates
or modification of wage rate plans because of the creation of new jobs, develop­
ment of new manufacturing processes, changes in equipment, changes in the
content of jobs, or improvements brought about by the company in the interest
of improved methods and product. Under such circumstances the following
procedure shall apply:
1. New Wage Rates for New Jobs
When a bona fide new job or position is to be established:
(а ) Management will develop an appropriate hourly, tonnage, or piecework
rate.
(б) The proposed rate will be explained to the grievance committee with the
objective of obtaining its agreement to the installation of the proposed rate, or,
to the installation o f the proposed rate for an agreed upon period which will
serve as a trial period. Management may thereupon install such rate. I f the
rate is installed without agreement, it shall subsequently be subject to adjustment
as provided below.
(c) When a wage rate for a new job is installed, the employee or employees
affected may, at any time within ninety (90) days, (except where the parties
otherwise mutually agree) file a grievance alleging that such new rate does not
bear a fair relationship to other jobs in the same plant. Such grievance shall
be adjusted under the grievance and arbitration machinery o f this agreement.
I f the grievance be submitted to the arbitration machinery, the decision shall
be effective as of the date when the employee was assigned to the new job.
2. New Wage Rates for Changed Jobs
When changes are made in equipment, method o f processing, material
processed, or quality or production standards which would result in a substantial



14

INCENTIVE WAGE PROVISIONS

change in job duties or requirements; or where over a period of time an accumu­
lation o f minor changes o f this type have occurred which, in total, have resulted
in a substantial change in job duties or requirements, adjustments of hourly,
incentive, piecework and tonnage rates, may be required. In such cases new
wage rates shall be installed in the following manner:
{a) Management will follow the procedure outlined in 1 (a ) above. In
addition, the rate proposal so developed will be fully explained to the union
representatives with the objective of obtaining their agreement to the proposal
on the basis of equity. Negotiations may be instituted by the grievance com­
mitteeman representing affected employees or by management. I f subsequent
rate studies are necessary, management will acquaint the grievance committee­
man or committee regarding such study and seek their cooperation. When the
study has been completed and the proposed new wage rates computed, manage­
ment representatives will again confer with the committeeman or committee
and fully explain the study. The procedure involved in explanation and negotia­
tions will be that procedure outlined in section 9 of this agreement under which
the first contacts will be with the foreman with negotiations continuing through
the successive steps o f such procedure.
(5) I f management and the union representatives are unable to agree upon
the new rate for the changed job, management shall have the alternative o f (1)
establishing the new ra te; (2) setting a temporary rate for a reasonable trial
period.
I f management elects to set the new rate for the changed job, the employee
may file a grievance at any time within ninety (90) days (except where the
parties otherwise mutually agree) from the installation of the new rate, and
any change in the rate so determined shall be retroactive to the date of the
assignment o f the employee to the changed job. I f management adopts the
alternative of a trial period, the employees, during such trial period, shall be
guaranteed his straight-time average hourly earnings for the 3 months immedi­
ately preceding the change in the job content. After the expiration of the trial
period, the employee or employees affected may, at any time within thirty (30)
days, file a grievance and any change in the rate so determined shall be retro­
active to a date no earlier than the date of the assignment of the employee to the
changed job but no later than the date immediately following the expiration o f
the trial period. Such grievance shall be adjusted under the grievance and
arbitration machinery of this agreement.
If any grievance under this paragraph (b) is submitted to the arbitration
machinery, the decision shall be governed by the principle that the new rate shall
be in line with other rates in the plant.
48. Alternative Procedure when Parties Unable to Agree on New Rate for Changed
Joh (Management may either establish a rate, subject to protest through
the grievance procedure within 90 days, or set a temporary rate for a trial
period.)
I f management and the union representatives are unable to agree upon the new
rate for the changed job, management shall have the alternative of (1) estab­
lishing the new rate; (2) setting a temporary rate for a reasonable trial period.
I f management elects to set the new rate for the changed job, the employee may
file a grievance at any time within ninety (90) days (except where the parties
otherwise mutually agree) from the installation of the new rate, and any change
in the rate so determined shall be retroactive to the date of the assignment o f
the employee to the changed job. If management adopts the alternative of a
trial period, the employee, during such trial period, shall be guaranteed his



U N IO N PARTICIPATION— INCENTIVE RATES

15

straight-time average hourly earnings for the 3 months immediately preceding the
change in the job content. After the expiration o f the trial period, the employee
or employees affected may, at any time within thirty (30) days, file a grievance
and any change in the rate so determined shall be retroactive to a date no earlier
than the date of the assignment of the employee to the changed job but no later
than the date immediately following the expiration of the trial period. Such
grievance shall be adjusted under the grievance and arbitration machinery o f this
agreement.
49. Notice to Union Steward of Rate Changes; 48 Honrs Allowed for Checking
Rates Before Posting
The department steward or division steward of the department affected will be
notified of all piecework price proposals or establishment of rates on new jobs.
I f so requested, he will be allowed forty-eight (48) hours maximum for checking
time studies and facts before posting a proposed rate. I f mutually agreed, the
rate may become effective immediately. If not, the rate will be posted three (3)
working days before becoming effective. Upon written objection being presented
to the company by the union, the same shall constitute a grievance to be
negotiated through the regular established channels, but subject to the limita­
tions contained in section 9 of “ Handling of Grievances.” In these negotiations,
the union’s representative shall have the right to observe the company’s file per­
taining thereto for the purpose of determining a proper rate. Should the negotia­
tion result in an agreement on a rate higher than the proposed rate, it shall be
made retroactive to the date the written objection is filed, but for not longer than
a period of sixty (60) days. Any exception to the sixty (60) day retroactivity
clause must be negotiated and mutually agreed to.
50. Notice of Revised Rate Given to Worker B efore Starting Work
It is the company’s policy to establish firm piecework rates. On all piecework
jobs where a rate has already been established, the management will make no
reduction of such rate, unless the conditions upon which the rates were based have
been changed or a clerical error was made. The operator will be advised o f any
new rates before he begins to work on the same.
51. One Week*s Notice to Employee and Union of Decrease in Standard Rates
Standard rates which have been definitely established shall not be decreased
without giving 1 week’s advance notice to the employee and to his representative.
52. Rates Set by Management Subject to Challenge Through Grievance Procedure
The company will continue to set incentive rates. Any dispute over such
rates may be taken up through the regular grievance procedure.
53. Union or Employer May Initiate Grievance on Established Piece Rates
Either the union or the employer may institute a grievance concerning any
established piece rate.
54. Employees or Employer May Enter Grievance on Present or Future Incentive
Rates
The right to enter grievances for present or future incentive rates will apply
equally to employees and to company.
55. Union May Reopen Present Piece Rates when “Necessary”
Piecework rates now in effect may be reopened for adjustment when the union
feels it is necessary. No “ incentive plan” or group piecework system will be
permitted unless agreed to by the union.



16

INCENTIVE WAGE PROVISIONS

56. Quarterly Revision of Group Incentive Quotas on Request by Either Party
The company and the union have agreed that commencing with the pay week
beginning [date], there shall be installed in the plant a group incentive
plan based upon standards which have been agreed upon between the company
and the union. It is recognized that this plan may be subject to modifications
from time to time as experience accumulates. Either the company or the union
shall have the right on any of the following dates to ask for a revision o f group
incentive quotas either upward or downward within 10 days of the end o f any
quarter, i. e., June 30, September 30, December 31, or March 31. It is the inten­
tion o f the group bonus plan that opportunity be given employees to earn a
bonus as a reward for extra effort expended, and that opportunity be given the
company to obtain the higher levels of production necessary to maintain profit­
able operations. The union agrees to impress upon its members the need for
full cooperation regarding both quality and quantity of work so that this inten­
tion may be properly achieved. It is recognized that revisions in the bonus plan
should, in fairness, be made in the event there is any methods change, new machin­
ery installed or some other circumstance that results in compensation to the
employees not the result o f extra effort. It is also recognized that changes may
be required in the future as the result of extra work that may be required in
connection with the process change. Any changes in the bonus plan may only
be made for the quarter following the date when the request for change is made.
No request for a change in bonus shall be made during a quarter to affect that
quarter’s compensation. In the event that the parties are unable to agree upon
the question of any change in the bonus plan, then either party shall have the
right to submit the matter to arbitration as a grievance, with the general under­
standing, however, that both the company and the union have agreed to plant
operation under an incentive plan. The incentive plan being installed on [date],
is intended to replace the present incentive bonus plan in operation during the
month of [date].
57. Time Limit on Appeal of Contested Rates: 5 Days
Any employee or employees who consider piecework price or prices inequitable
may bring same up as a grievance within a five (5) day period after the estab­
lishment of the piece work price or prices.
58. Time Limit on Appeal of Contested R ates: SO Days
The wage classifications and rates on new and changed operations shall be
established by the company and unless objected to by the union within thirty
(30) days after establishment shall be considered as approved and shall become
the standard wage classifications and rates. If any new wage classifications
or rates established by the company and objected to by the union within thirty
(30) days after establishment, are revised as the result of negotiation or arbitra­
tion, the revised wage classifications or rates shall become the standard wage
classifications or rates and payment on revised basis shall become retroactive to
the time of the establishment of the original basis.
59. Special Committee to Adjust Grievances Pertaining to Piece Rates
A committee, which shall be known as the Special Rates Committee shall be
set up to adjust any disagreements pertaining to rates of pay. This committee
shall be composed of three members appointed by the union and three representa­
tives appointed by the company.
When a piece rate is found to be unsatisfactory the operator shall inform the
foreman who shall make out a written application for a re-time. This shall
be signed by the operator, and presented to the time study department. I f the



U N ION PARTICIPATION— INCENTIVE RATES

17

matter is not taken care of promptly or the rate is still unsatisfactory the operator
shall call for the special rates committee and the matter shall remain in their
hands until a final settlement is reached.
I f after checking the job twice the rates committee decides that the operator
was not justified in his request for adjustment, no more requests for re-time
shall be made by that employee on that job, unless conditions on the job have
changed making adjustment necessary.
60.

Rate Betting Procedure Excluded From Scope of Arbitration (Alleged im­
proper piecework prices are subject to arbitration.)

Where it is alleged that improper piecework prices exist, the matter may be
taken up through the grievance procedure: Provided, however, That the juris­
diction of the grievance procedure does not include any question of changing
the company’s piece price setting procedure, including the remuneration chart
attached hereto and marked “ Exhibit C,” and any arbitrator under the terms
of this contract in making his decision as to the correctness or incorrectness o f
a piecework price shall have no power or authority to change any part of the
company’s piece price setting procedure, including the remuneration chart, but
shall have the authority and power to determine, subject to the provisions of
this contract, whether or not the piece price has been set properly within the
framework of the company’s established piece price setting procedure.
61. Aid of Technical Expert Invoked for Conciliation and Arbitration
When the content o f a job is changed as the result o f a change in method,
production, tools, material, design, or production conditions, or when a new
job is created, the company will evaluate and classify the job in accordance
with its job evaluation and classification plan; or if an incentive rate is changed
under similar conditions, or a new incentive rate is established, the company
shall set the rate in accordance with its incentive plan. I f the union does not
accept the rate set by the company for a changed job or a new job, the rate
established by the company shall be put into effect without prejudice to the
union’s position to refer the matter to the grievance procedure. I f a written com­
plaint is filed, it shall be processed promptly through the first four steps of the
grievance procedure. As the result of this effort, if no agreement is reached,
the parties shall call upon the services o f a technical commissioner of the United
States Conciliation Service to consider the problem and help the parties to reach
an agreement. I f the difference of opinion is not settled by this procedure, then
it shall be referred immediately to arbitration as established in section IX of
this agreement: Provided, however, That in cases of dispute arising under this
paragraph the United States Conciliation Service shall appoint a technically
qualified arbitrator in the event the parties fail to agree within 1 week upon
the selection of an arbitrator. The award of the arbitrator shall be based upon
whether or not the company has ranked the job in its proper relationship to
other jobs in the plant or has uniformly applied the incentive plan. Any
change in the rate o f pay that may be made as the result of the operation of
this procedure shall be retroactive to the date of receipt by the company of the
written complaint.
62. New Rate Retroactive to Date of Change or SO Days, Whichever Is Shorter
In the event a new operation for which no established rate exists is created,
or an existing operation is substantially changed and no established rate exists
for the operation as changed, or a new rate is established on any particular
job, or a change is made from day work to piecework or vice versa, the employer
shall establish the rate or change and shall inform the department steward



18

INCENTIVE WAGE PROVISIONS

thereof. Unless objected to by the union within thirty (30) days after estab­
lishment, the rate or change shall be considered as approved and shall become
standard schedule. If objected to within thirty (30) days and following a
conference between the parties hereto, it is determined that the rate is incorrect,
it shall be adjusted and the adjustment shall become retroactive to the date when
the rate or change first became effective or for a period of thirty (30) days,
whichever is the shorter of the two periods.

Safeguards on Earnings
In addition to righ ts o f participation in rate setting under the in ­
centive system , unions custom arily seek a w ide variety o f safeguards
against loss o f earnings or hardship that m ay result from the app li­
cation o f an incentive system . The m ost general are those which guar­
antee workers against rate cuts, guarantee some minim um earnings
under the incentive plan, and protect workers in connection w ith tim e
study.
PROTECTION AGAINST RATE CUTTING

Probably the m ost common protection is a guaranty against changes
or cuts in existing rates unless there is a bona fide change in job con­
tent or method o f operation, or i f it is demonstrated that a clerical
error was made in calculating the original rate.

Interpretation o f

clauses o f this sort, however, is a frequent source o f conflict. M uch
bargaining tim e is spent in discussion o f what constitutes a change
in method or product and when a change in job elements is substan­
tia l enough to w arrant a change in the incentive rate. M any agree­
m ents, therefore, regulate the conditions under which rate changes
m ay take place. Som e agreements indicate in general or in detail
w hat changes in job method or content are to be considered bona fide
reasons fo r restudying the job w ith a view to revising the incentive
rate.
Som e agreements prohibit changes in rates once they have been
set and approved.

W here re-tim ing and rate changes are allowed be­

cause o f changes in job content or im proved technique, they are usu­
a lly accompanied by a provision that the rate set after re-tim ing m ust
perm it earnings approxim ately equal to those in effect before the
change, fo r the same amount o f effort.

T his guaranty o f the form er

earning level, aside from serving as some form o f protection against
rate cutting, is seen as a means o f measuring and assuring the pro­
priety o f the new rate as against the old.

Sim ilar provisions specify

that the change in rate shall be commensurate w ith the change in the
nature o f the job or that only th at part o f an operation w hich has
been changed shall be re-tim ed.
63. Piece Rate Cuts Prohibited
It is mutually agreed that there shall be no reduction in the present estab­
lished piecework rates.



SAFEGUARDS ON EARNINGS

19

64. No Changes in Piece Rates
All piecework rates to remain as they are at present, and all employees on
piecework will be guaranteed their hourly rate for the workweek.
65. Employer Not Permitted to Revise Incentive Standards
The company will not re-time or question the basis o f incentive rates which
have been set in the past. The same rule will apply to incentive rates established
hereafter on new or changed jobs.
66. Employer May Revise Piece Rates in Event of Job Changes
It is understood and agreed that the company may at any time change piece­
work rates because o f mechanical improvements, changes in specifications, or
engineering changes.
67. No Reduction in Rate Unless Job Duties Substantially Change
The company will continue to establish incentive rates on all production and
maintenance jobs where it has been the practice to provide incentive earnings
for employees. Once an incentive rate has been established as fair, after a fair
trial period under normal operating conditions, there shall be no reduction in
such rate during the term of this agreement, unless there is sufficient change in
the operation to substantially change job duties or requirements.
68. Rate Adjustment Commensurate with Job Change
It is agreed that no reduction in pay standards will be made unless changes
in operations are made or unless mutually agreed to. Such rate adjustments will
be commensurate with the change in operations.
69. Rate Revision Limited to Job Elements Affected by Change in Method
All permanent piecework prices in effect are accepted during the life of this
contract with the following exceptions:
Permanent piecework prices may be increased or decreased where either
a change is made in design or in material specifications o f the part or where a
change in method of manufacture changes the work element required to do the
job. Where such change affects only part of the operations o f the job, re-timing
and price changes will apply only to the changed or affected elements.
70. Revision Applies Only to Operation Affected
All permanent piecework prices now in effect may be increased or decreased
where either a change is made in design or in material specifications of the part
or where a change in method of manufacture changes the work element required
to do the job. Where such change affects only part of the operations o f the job,
re-timing and price changes will apply only to the changed or affected operations.
A new piece price may be reduced or increased during the life o f this contract
where either a change is made in design or in material specifications o f the part
or where a change in method o f manufacture changes the work element re­
quired to do the job. Where such change affects only part of the operations of
the job, re-timing and prices changes will apply only to the changed or affected
operations. However, where a newly established piece price is found to be in
error due to the use o f the wrong base rate, arithmetical errors in calculations
o f the rate, or clerical errors in the transferring and posting o f a piece price, such
erroneous rates shall be corrected and the corrected rate made effective, retro­
active to the date the erroneous price was originally set. Where such change
or error affects only part of the operations, the correction will only apply to the
part of the operation affected.
7 7 8 3 0 7 ° — 48-




4

20

INCENTIVE WAGE PROVISIONS

71. Proper Rates Will Not Be Changed Regardless of Earnings
Once rates are properly established they must be maintained regardless o f the
earnings achieved under those rates.
72. Earnings Not To Be Cut "by Rate Revision
When a piecework price has been set for any job or operation, and later on
more work is required o f the employee within a given time because o f certain
changes or rearrangements made by the company, the operation shall be re­
studied and the piecework price shall be adjusted proportionately to the addi­
tional amount of work involved. It is understood in instances where the facilities
for the performance of the operation are improved in tooling or otherwise, from
which change greater output results within a given time, such operation is also
to be restudied and the piecework prices adjusted proportionately, however, earn­
ings will not be reduced below the original level.
73. High Earnings on One Job No Basis for Requesting Change in Standards for
Other Jobs
High percent earnings on one job or number of jobs shall not be used as a basis
to request increases in standards on other jobs above the normal established in
paragraph * * ♦.
74. Piecework Prices Continue for Life of Agreement Except When Design or
Operation Changes
All piecework prices now in effect will be maintained during the life of this
contract, except where either a change is made in the design of the part, or in the
method of manufacture.
75. Union May Challenge Permanent Rates at All Times; Employer Limited to
60 D ays; Disputes Arbitrable
The company may revise permanent rates on incentive jobs in instances where
gross inequities are deemed to ex ist; but the right to so revise permanent rates
is limited to a sixty (60) day period after the setting o f such permanent rates.
I f the union (a) challenges the existence of a gross inequity, or (b) claims the
revision is excessive, and if the parties cannot reach a mutually satisfactory
settlement o f the dispute, the matter may be submitted for arbitration in accord­
ance with the provisions o f section 7, grievance procedure, (A ) (5) o f this agree­
ment.
The union may challenge the adequacy o f any permanent piece rate at any
time and, if the parties are unable to reach an agreement, the matter may be
submitted to arbitration in accordance with the provisions of section 7, grievance
procedure, (A ) (5) of this agreement.
76. Conditions for Rate Revision Itemized
Permanent bonus work standards shall be guaranteed for the duration of this
agreement unless:
(a) The tools, jigs, fixtures, machines, machine feeds and speeds, or method o f
operation are changed.
(b) Work is added or taken away from the operation.
(c) Quality requirements are raised or lowered from the original specifica­
tion.
(d) A genuine clerical error has been made in computing the standard.
77. Rates Adjusted when Earnings Exceed Specified Level
When new piecework rates have been once set as permanent, or old piecework
rates adjusted at the beginning o f this contract, and also at the beginning of the



SAFEGUARDS ON EARNINGS

21

company’s fiscal year starting September 1, o f each year hereafter, they will be
decreased only when found to have been set in error, operating conditions changed,
or earnings found to exceed their basic rate by more than thirty (30) percent.
78. Indirect Effect of Job Change Taken into Account in Bate Revision
With respect to revising existing standards due to changed job content, and in
establishing rates in connection therewith such changes shall only be made in the
portion of the job content which has been changed unless it can be shown that
such a change affected other elements of the job. In revising any standards or
in changing rates hereunder, no employee will be penalized for skill acquired
since the existing standard was established.
79 Minor Changes Cumulated Until Revision Justified (Union steward notified
o f minor changes not deemed sufficient to warrant re-timing.)
Permanent rates once established will not be increased or decreased unless such
action is justified by change in materials; change in tools or equipment; change
in methods; change in quality standards; work added to or removed from a jo b ;
mathematical error in setting the timing or the rate.
It is agreed that the above changes may take place gradually or may be of
such a small nature as not to warrant a re-timing when such small change takes
place. The effect of such gradual change or of minor changes may accumulate
to the point where a re-timing o f the job is required, at which time all previous
gradual or minor changes will be taken into consideration. The union steward
will be notified of each particular change as the result of which a new time study
is not then being made.
80. Rate Adjustment in Event of Added Work or Introduction o f Timesaving
Method (Increased effort and efficiency by worker may not be the basis
for revision o f rates.)
When a change is made in an operation which results in added work the rate
shall be adjusted to take care o f such added work without reducing the average
earnings of the operator on the job in question.
When a change is made by the company which results in a saving in time on
an operation, the rate shall not be cut more than is warranted by the actual
saving in time at the time of the change. Advantage shall not be taken of the
operator’s own increase in productive efficiency due to long experience on the job.
81. Employee’s Improvement in Technique No Justification for Rate Revision
In event that an employee can change the method o f operation through some
timesaving device or method, thereby increasing his productive efficiency, such
change shall not affect the bonus rate on that particular operation during the
life of this agreement.
82. No Chcmge in Rate for 8 Months Following Improvement Suggested by Em­
ployee; Immediate Revision When Company Makes Improvement
I f an improvement in methods or equipment is suggested by an operator, then
piecework prices in effect at that time will remain for a period o f three (3)
months actual operating time, regardless of magnitude, to compensate the op­
erator for his suggestion. At the end o f three (3) months the rates will be sub­
ject to revision. Any one suggestion shall be compensated for only a maximum
of three (3) months actual operating time, regardless of the number of jobs to
which it might apply. If an improvement in method o f equipment, or a change
in stock removal is made by the company, the rate, whether temporary or per­
manent, will be subject to immediate change.




22

INCENTIVE WAGE PROVISIONS

83. Mutual Consent Required for Rate Revision Based on Increased Skill o f
Employee
Increased skill of an employee shall not constitute a reason to adjust estab­
lished piece rates except by mutual consent.
GUARANTEED

MINIMUM

EARNINGS

A common method o f assuring incentive workers m inimum earnings
is the establishment o f a guaranteed m inimum wage, below which the
earnings o f no incentive worker can fa ll.1

These guaranties m ay be

hourly, daily, or w eekly, depending on the method o f paym ent in
effect.

Such guaranteed m inim a take m any fo rm s: Guaranteed hourly

rates o f p a y ; average earnings fo r a prior period or a percent o f these
earnin gs; a percent or specified amount above the employee’s regular
hourly rate, etc.
A nother type o f earnings safeguard found in agreements is a com m it­
ment by management to set and m aintain incentive rates so as to yield
earnings at a specified level above the minimum or the base rate.

T h is

differential is generally expressed as a percentage o f the base rate,
sometimes also in cents per hour.

Em ployers frequently object to

h aving such incentive m argins written into the agreement on the
ground that the differential base rate soon comes to be regarded as a
guaranty rather than a guide to rate setting and that the successive
raising o f earnings guaranties tends to destroy the incentive principle
o f paym ent in proportion to productivity.
Som e o f the methods specified in agreements fo r guaranteeing in ­
centive earnings above the m inim um include a proviso that the base
rate be set to yield a reasonable bonus; or that.a restudy w ill be made
when earnings o f the average diligent worker fa ll below a specified
amount or fa il to yield earnings o f a specified percent above base.
W h ile unions m ay demand upward adjustm ent o f rates when earn­
ings fa ll below certain levels, on the grounds th at the piece rates are
“ too tig h t,” management m ay claim the righ t to reduce “ loose” or
ou t-of-lin e rates, which consistently result in excessively high earnings.
Em ployers fear “ loose” rates w ill lead to claim s o f inequity by those
not m aking high earnings and the result w ill be more “ loose” rates.
Som e agreements also perm it a downward adjustm ent o f piece rates
where earnings are out o f line.
84. Hourly Rate Guaranteed for Incentive Workers
The hourly rate is guaranteed for individual or group workers. In other
words, if an individual or group incentive worker should earn for any day an
1 Even under a straight piecework system, with no specified minimum or guaranteed
rates, minimum earnings must meet legal requirements and any difference between piece­
work earnings and the legal minimum rate must be made up by the employer.
Employers subject to the Fair Labor Standards Act are required to pay pieceworkers no
less than the minimum wage set by the act. Several States also have minimum wage laws
which constitute a minimum guaranty to incentive workers, regardless of actual output and
earnings.




SAFEGUARDS ON EARNINGS

23

amount that averages less per hour than his hourly rate, he will receive his
guaranteed hourly rate.
85. Male-Female Differential in Hourly Guarantee
The company agrees to restudy all piecework rates of jobs on which the average
male employee cannot earn ninety (90) cents per hour and rates on which
tiie average female employee cannot earn seventy-five (75) cents per hour.
86. Guaranteed Weekly Earnings Equal to Minimum W eekly Rate (Learners,
handicapped, and substandard workers exempted.)
The union and the company have agreed that all job classifications shall
carry minimum weekly full time, full job rates of pay amounting to 100 percent
o f the present base rates of pay. Each individual employee working at piece
rates shall be guaranteed weekly earnings equal to this minimum weekly rate.
The guarantee of minimum earnings to piece rate workers shall not apply to>
learners or handicapped employees and this clause shall not preclude the excep­
tion of substandard operatives upon agreement between the company and the
union.
87. Minimum Weekly Rate Equal to 90 Percent of Base Rate, Except for Learners
and Handicapped
The union and the employer have agreed that all job classifications shall carry
minimum weekly full time, full job rates of pay amounting to 90 percent of the
present base rates of pay. Each individual employee working at piece rates shall
be guaranteed weekly earnings equal to this minimum weekly rate. The guaran­
tee of minimum earnings to piece rate workers shall not apply to learners or
handicapped employees.
88. Basic Rate Not Considered a Guaranteed Minimum
Piece rates for operators and pressers shall be adjusted in accordance with the
usual procedure heretofore practiced by the company, the union, and the price
committee. In adjusting piece rates it is understood that the rates shall yield
seventy (70) cents per hour to the majority o f operators and pressers in their
respective operations. This basic rate of seventy (70) cents per hour shall not
be considered as a guaranteed minimum but a basis upon which the piece rates
shall be established.
89. Piece Rate Earnings Must Equal Previous Earnings at Hourly Rates
I f piece rates are used, the company agrees that the rates shall be so fixed
(based on standards of output now on record in the shop or set up by a fair and
competent time-motion study or any mutually adjusted revision thereof) that
production at those production rates will result in at least the average wages
per hour, or day, or week previously earned at hour rates by skilled workmen.
90. Guarantee Differs for Incentive and Piecework Operators (To qualify,
workers must have earned the amount guaranteed for two consecutive full
working weeks during the term o f the contract.)
Employees on incentive occupations shall be guaranteed on a daily basis the
base rate but not less than the plant minimum wage. To qualify for this
guarantee, however, employees must have earned at the base rate or better
daily for two consecutive full working weeks during the term o f this contract.
On piecework jobs, the minimum guarantee on a daily basis shall be 90 percent
o f the straight time average hourly earnings as shown on the wage schedule o f
[date], as amended, but not less than the plant minimum wage.
To qualify for this guarantee, however, employees must have earned daily
90 percent of the straight time average hourly earnings as shown on the wage



24

INCENTIVE WAGE PROVISIONS

schedule of [date], as amended, for two consecutive full working weeks during
the term of this contract.
91. Make-XJp P ay: Rate Revised if Group Earnings Fall Below Minimum for 4
Weeks
Relation of standard base rates of pay to piece rates: Piece rates shall be set
at such a point that sixty (60) percent o f all piece-rate workers (exclusive
of learners) in the same department and on the same type and method o f work
will earn the standard base pay on full jobs for a full forty (40) hour week.
Procedure to be followed when less than 60 percent earn the standard base rate
o f p a y : Where there is an established piece rate which does not enable 60 percent
of the pieceworkers (exclusive of learners) in the same department and on the
same type and method o f work on full jobs to earn the standard base rate o f
pay, due to temporary conditions, the employer shall make up the pay of all
the employees in the same department and on the same type and method o f
work in an amount necessary to bring their earnings up to that amount they
would have earned had the piece rate been so established as to enable 60 percent
o f them to earn the standard base rate o f pay.
I f 60 percent of the piece-rate workers (exclusive of learners) in the same
department and on the same type and method of work do not earn the standard
base rate o f pay for four (4) consecutive weeks, the piece rate concerned shall
be considered subject for review and upward adjustment by an amount which
will enable the said 60 percent to earn the standard base rate of pay, unless the
union and the employer shall mutually agree otherwise.
92. No Ceiling on Incentive Earnings
Incentive earnings over the base rate will be based on 40 percent of the base
rate. There will be, however, no ceiling on incentive earnings. Such rates shall
be set so that a qualified incentive worker, that is, any employee who has the
physical fitness, intelligence, and experience necessary to qualify him as a molder,
coremaker, or grinder, shall be able to earn in direct proportion to his efforts.
Thus, it is assumed that since a piece rate is based on the normal production of
a qualified worker that a better than average worker can earn in excess o f 40
percent and that the average earnings for such classification will be approxi­
mately 40 percent over base earnings.
93. Rate Set at Level Enabling Employee to Earn 25 Percent Above His Base Rate
Piecework rates set on jobs shall be in accordance with the company’s piecework
plan, which will include reasonable personal, fatigue, and machine allowances,
and which after reasonable experience with an employee of average experience
on the job, will enable an employee to earn at least 25 percent above his base rate.
94. Standards Set to Permit Specified Earnings Above Base Rate
Bonus work standards shall be established so that employees may earn 115
to 125 percent for a reasonable amount of effort after they have obtained sufficient
experience on the particular casting and operation involved.
95. Adjustments to Permit Earnings 20 Percent Above Base Rate
The company at the request of the union will promptly restudy and analyze
the operations and conditions of a piecework job provided that an experienced
employee in that occupation has given the job a fair trial and is repeatedly
unable to earn at least twenty (20) percent above the base rate for this occupa­
tion. I f the company finds that the employee has made an honest effort and the
study indicates that an adjustment is warranted, the company will make such
adjustment in the piecework price.



25

SAFEGUARDS ON EARNINGS

96. Guaranteed Bonus Over Day Rate on W eekly Basis
Incentive plan workers, who are qualified either first or second class, will be
guaranteed a fifteen (15) percent bonus over their day rates on a weekly basis
exclusive o f overtime.
97. Expected Earnings Over Base Rate Not Guaranteed
Piece prices are established by time study at a rate which in the opinion o f the
management will afford a minimum earning opportunity of 20 percent above the
base rates to operators of average skill and experience when working at an
incentive pace. This however is not to be construed as guaranteeing minimum
earnings of 20 percent above base rates.
RESTRICTIONS

ON

TEMPORARY

INCENTIVE

RATES

Em ployers often insist that rates be given a fa ir and reasonable trial
before such rates are considered permanent. T he length o f the trial
period is, on the other hand, a m atter o f concern to workers in that
undue delays between the beginning o f an operation and the setting of
a rate m ight result in some loss o f incentive earnings.

Agreem ents

specify tria l periods varying from a few days to several m onths, during
which the rates are generally subject to adjustm ent by the company
alone or by mutual consent. D uring the trial period workers are
usually guaranteed fu ll earnings based on past experience or a per­
centage thereof, or some other specified m inim um .

W h en a rate is

increased follow in g a tria l period, the new rate is frequently made
retroactive to the date work began on the new operation.
98. Practice o f Setting Temporary Rates To Be Minimized
The practice of setting temporary rates in well-established departments should
be held to a minimum. It should in any event be clear that the standards are
temporary and for a period not to exceed thirty (30) days. This shall not
apply to new departments.
99. Temporary Rates Permitted hy Mutual Agreement
By agreement between the company and the union a temporary piece rate
may be installed. Such temporary rates shall not be regarded as an established
rate within the meaning o f this article.
100. Rate Considered Permanent if Not Challenged Within 150 Days
Any rate not challenged by the union within a period of 150 days after its
establishment shall be mutually guaranteed as a permanent rate, subject only
to plant-wide adjustments in wage rates, or to changes in the nature of the job
such as stitches per inch, machine, machine speeds, operating methods, method
of performing the job, or changes in the garment itself.
101. Ninety-day Trial Period for New Rate
During the first ninety (90) days a piecework rate is set, it shall be a tempo­
rary piecework rate subject to adjustment by the company.
102. One-Week Trial P eriod; Adjustment Retroactive to Date o f Posting
New rates shall be given a one calendar week’s trial and after such trial, if
the rates are not satisfactory, upon written request they shall be subject to
immediate review and any adjustment shall be retroactive to date of posting.



26

INCENTIVE WAGE PROVISIONS

103. Two-Month Trial Period; Adjustment Retroactive to Date of Complaint
I f new piece rates determined upon are objected to by written complaint and
if the dispute cannot be adjusted by negotiation with the union, the question
shall be considered a grievance and shall be settled accordingly. Prior to having
it so considered, however, the company, if it so desires, shall be entitled to a
trial period of 2 months at the rate it has determined upon, but if there is such
a trial period and if the rate is later adjusted as a result of the complaint, the
new rate shall be retroactive to the time of the complaint.
104. Temporary Rate Not to Remain in Effect for More Than 6 Months
Temporary piece prices may be established on all new or changed jobs where
it is not practicable to set a standard piece price immediately. In no instance,
however, shall a temporary piece price be permitted to remain in effect for more
than six (6) months. Efforts shall be made to set standard piece prices on
those jobs in continuous operations in less than six (6) months. A temporary
piece price shall become the standard piece price if in effect beyond six (6)
months unless by mutual agreement between the union and the company, it is
determined that the period shall be extended.
105. Previous Average Earnings Guaranteed During Trial Period
On any change of construction or product which is paid on a piece-rate basis,
it is understood that a trial period, the length of which shall be agreed upon
in each instance (during which not less than the average earnings on the pre­
vious job shall be paid), shall be allowed before the piece rates are finally set
in order to permit the operation to become settled, and the normal average
efficiency to be established.
106. Guarantee of Average Earnings Based on Previous 4 Weeks9 Earnings
The company will pay to the employee involved a rate based on the individual’s
average earnings over the previous 4 weeks exclusive o f overtime in the following
cases:
On all new piecework jobs during the time until a piecework rate has been
established. New piecework rates will be established within 10 days if possible.
107. Employees Paid Actual Earnings or 20 Percent Over Their Guaranteed
Rate, Whichever is Greater
During the t rial period on new piecework rates on new work, employees will
be paid a minimum of twenty (20) percent over their guaranteed rate or the
amount o f their earnings on the piecework rates, whichever is the greater.
108 One-Hundred-Fifteen Percent of Base Rate Paid Until Standard Set
Previous to the establishment o f a standard and during the time a job or
operation is being time studied an employee shall receive 115 percent o f the base
rate.
109. Production During Trial Period Paid at Rate Finally Set (Retroactive
adjustments do not exceed 60 days, unless mutually agreed to.)
It is agreed that the company will set piecework prices so that the average
workman working at a fair pace can make earnings which will average the
base rate.
It is recognized that under certain conditions, piecework prices shall be sub­
ject to change or temporarily canceled or new piecework prices established.
When methods, lay-outs, or specifications are changed, or when job conditions
become so different from those covered by the time study that the piecework
prices do not apply, then the employees affected shall be paid their base rate
until the new piecework price is established or the old price reinstated.



GUARANTEED EARNINGS

27

If, under any of the above described circumstances, employees produce work
which, when based on the piecework price finally established, would earn more
than the wage rate paid, they shall receive the difference between what they
were actually paid and what they would have earned at the new piecework rate.
It is understood, however, that no such wage adjustments shall be retroactive
more than sixty (60) days. Any exception to the sixty (60) day retroactivity
clause must be negotiated and mutually agreed to.
110. Temporary Rate Includes Day Rate Plus Pay for Units Produced
On new jobs being time studied for the purpose o f establishing piecework
prices, the employee while working on such job will be paid at his guaranteed day
rate up to the time that the piecework price is set on the job by the time study
department and in addition he will receive as extra compensation, an amount
equal to fifty (50) percent of the piece price, on all good units produced by
him from the start of the job to the time the piecework price is set by the time
study department. This extra compensation will not apply after the piecework
price has been set by the time study department. This extra compensation
will be paid to the employee in a lump sum on the pay day of the first full week
following the date piecework price was set.
111. Base Rate Guaranteed During Trial Period
In the establishment of new piecework rates the new rates shall be mutually
agreed upon by the company and the union. Trial periods for the establishment
of such new rates shall not exceed sixty (60) days. During such trial period
the workers affected shall be guaranteed their then base rates.
112. Percentage of Average Hourly Earnings Guaranteed Until Piece Rate
Established
The company shall continue to pay 90 percent average hourly earnings as a
temporary basis for work done where piecework rates are not established.
Should more than 1 week be required to establish the new rates, there shall be
no reduction in the temporary hourly rate being used, and the work being done
during this period shall be paid for on the new established rates, made retro­
active at the option o f the employee. New rates will be used immediately and
90 percent does not apply after rates are posted. I f protested within 2 weeks
and changed, revised rates will be retroactive.
113. Eventual Permanent Rate Lower Than Temporary Rate Not To Be Con­
strued as a Wage Cut
Where a temporary piece price is set, until the job has been developed and a
permanent piece price is then set, such temporary piece price may be higher
or lower than the permanent piece price: Provided, however, That if the per­
manent piece price is less than the temporary piece price, the change in price
shall not be construed as a wage cut. Any such change will go into effect as of
the date of the change.

Guaranteed Earnings Under Special Conditions
In addition to the general safeguards which apply to norm al opera­
tions on incentive work, specific safeguards are sometimes provided
to cover unusual or special conditions which tend to reduce incentive
earnings.

Some agreements adjust workers’ earnings under a va­

riety o f circumstances that would otherwise reduce them— as, fo r ex7 7 8 3 0 7 0— 4 8 ------- 5




28

INCENTIVE WAGE PROVISIONS

am ple, when w orking on fau lty m aterials or when machinery breaks
down, when doing special jobs, when w aiting fo r work, when the
machine is being set up fo r a new job, when m aterials are short or de­
fective, or the .work is new or experim ental.
DOWN-TIME

Protection against loss o f incentive earnings in the event o f lost or
“ dow n” tim e is a common safeguard found in union agreements.

D e­

lays caused by machine break-down, lack o f m aterial, power failu re
and sim ilar causes are beyond the control o f the workers and the agree­
ments seek to compensate fo r the lost tim e. U nions seek to standardize
the policy regarding reimbursement fo r tim e lost on the job through
no fa u lt o f the operator and to make such paym ent autom atic.
Frequently a list o f causes considered valid fo r “ w aiting tim e” pay
is included.

M any agreements also specify that a minimum period

o f tim e must elapse after the interruption before workers w ill be paid
fo r tim e lost.
T he rate o f compensation fo r “ down” tim e varies.

In some plants,

past average earnings or a fraction o f average earnings are paid.

In

others, it is the base rate or some percentage o f the base rate. D if­
ferent methods o f paym ent m ay bemused, depending on the length o f
the delay. In the tim ing itself, a specified allowance fo r lost tim e m ay
be added to the tim e allotted to do the job.
114. Percent of Average Hourly Earnings Paid for Lost Time
The following operations shall be paid for at 90 percent of average hourly
piecework earnings: Mechanical trouble (stoppage of work, 1 hour or less) ;
mechanical trouble (temporary slow-down) ; stock conditions on items with es­
tablished rates; out o f stock, shells, liners, etc., on items with established rates.
115. Percent of Base Rate for Lost Time
Incentive workers shall be paid 85 percent of workers* base rate for any lost
time.
116. (Guaranteed Hourly Rate Paid for Unrated Work, and Various Types of
Lost Time
In addition to the daily guarantee incentive workers are paid their guaran­
teed hourly rate in the following instances:
1. Lack of sufficient stock or break-down.
2. Unrated operations or operations under development.
3. During the establishment of production standards.
4. Call-in pay.
5. Visits to first-aid room or to company doctor during regular working hours.
6. Actual time lost due to grievance or negotiation meetings.
117. Guarantee Varies with Cause of Delay
Waiting time caused by power interruptions, equipment break-downs, and
flood, shall be paid for as follow s:
Males 80 cents per hour.
Females 60 cents per hour.



GUARANTEED EARNINGS

29

In case o f mechanical break-down, where the individual or crew works to clear
the break-down, the time required for such work shall be paid for on the basis
of average hourly earnings.
Exception: Waiting time caused by shortage o f materials and drum sets, and
not resulting from power interruptions, equipment break-downs or other causes
beyond the control of the company shall be paid for at 90 percent o f average
hourly earnings.
118. Rate for Intermittent and Complete Down-Time Differentiated
Employees on the bonus or group system shall be guaranteed piecework setting
rate, plus fifteen (15) percent, for all intermittent down-time when the company
is at fault: Provided, however, That the employee shall make an honest effort
to make up such down-time. In computing such down-time, production earnings
and time spent on the specific job shall be considered. When employees are re­
quested to remain on a job on account of complete down-time, female employees
shall receive fifty-five (55) cents per hour and male employees shall receive
sixty-five (65) cents for such down-time when the company is not at fault.
119. Pay at Rate of Previous Week's Average Earnings for Time Lost Above
Normal Delays (In compensating for lost time, consideration is given to
the fact that allowance for normal delays was made when the piece rate
was established.)
Where a worker on piecework loses production time through no fault of his
own, such as waiting for work, machine break-down, or emergency repairs to
machinery, the employee, upon immediately notifying his foreman, shall be paid
for such lost time for not over 1 day at the rate o f his or her previous week’s
average earnings. No payment shall be made for waiting time, unless such lost
time in any one day exceeds fifteen (15) consecutive minutes. In all lost time
cases, standardized or normal work stoppage considered in the establishment o f
piece rates will be taken into consideration.
120. Piece Rates to Include Allowance for Delays of Less Than 15 Minutes
(Where the delay is more than 15 minutes, the total lost time is paid for at
the guaranteed base rate.)
All piece rates will include normal allowances for the operator’s personal needs
and fatigue, and for a normal amount of delays which are beyond the control
of the operator and are less than 15 minutes per occurrence.
For all delays which are beyond the control of the operator and are 15 minutes
or more per occurrence, and where the operator is not assigned to other work for
the period of the delay, he shall be paid the guaranteed base rate for such total
delay time upon approval by the supervisor in charge.
121. Percent Above Day Rate if Specified Down-Time Exceeds 15 Minutes
(Company may assign other work during down-time period.)
When a pieceworker is prevented from doing his regular work due to a delay
in connection with equipment, repairs, power, stock or orders, and if the delay
period exceeds fifteen (15) minutes, allowance shall be granted to 12% percent
above authorized day-work rate for the delay period, computed to the nearest
quarter hour. During a delay period the employees shall be required, if possible
to assist in correcting the delay or to do other miscellaneous work that may be
assigned.
122. Base Rate Paid for Specified Waiting Time in Excess of 18 Minutes
Time lost, at the request of the company, during working hours in excess o f
eighteen (18) minutes due to :
1. Waiting for work.
2. Waiting for material.



30

in c e n t iv e

w age

p r o v is io n s

3.
Going to the company doctor or medical dispensary, shall be paid at
100 percent or base rate of the incentive job assigned at the time any of the
above three delays occur.
123. Day Rate for Time Lost Over 15 Minutes Due to Occupational Injury
Piecework employees, who are required to visit the works’ medical department
because of injury arising out of or in the course of employment, will be paid
allowances at occupational day-work rate for the time lost provided the lost time
amounts to fifteen (15) minutes or more. The employee will be required to
notify his foreman o f the time consumed immediately upon return to his place
of employment.
124. Base Rate T to 1 Hour Waiting Tim e; Average Hourly Earnings Thereafter
Jp
When waiting time or down-time for conditions beyond the control o f the em­
ployee occurs and when the employee is not offered another assignment, base
rate not to exceed a maximum total of one (1) hour per day will be paid. For time
in excess of one (1) hour, average hourly earnings rate will be applicable.
125. Delays Under 6 Minutes Not Compensated
Whenever an employee’s production is interrupted through no fault o f his
own for six (6) continuous minutes or more, the interruption shall be designated
“ delayed time” and he shall be paid his guaranteed hourly rate for all such time
in excess of fifteen (15) minutes in one workday. Interruptions of production
of less than six (6) continuous minutes, for any reason, shall not be considered
“ delayed time.”
126. Alternative Procedmres for Down-Town Compensation
In the case of shortage of material, break-down o f machines, break-down of
power, or any other emergency, the employees affected shall either (1) be subject
to waiting time at straight base rates, or (2) be subject to the rates provided in
the transfer clauses of the contract, or (3) be temporarily laid off without pay.
127. Pay for Delays Over 15 Minutes Unless Employee Given Other Job or Sent
Home
Waits that are caused by the management up to fifteen (15) minute periods
are not to be paid for unless worker is assigned to specific task, during this period.
I f not so occupied at the end o f the fifteen (15) minute period, operator must b e :
1. Put on another piecework operation.
2. Put on a time-work operation.
3. Sent home.
If, after the worker has been kept waiting for more than one fifteen (15) minute
period and the management fails to do any o f the things specified under 1, 2, 3,
the worker shall receive his minimum hourly rate during the time he is kept
waiting.
128. Foreman to Make Allowances in Incentive Pay fo r Delays
Where it is established that delays exceeding the standard allowances made in
time study computations are encountered due to conditions beyond the control
of the operator, such as machine break-downs, tool maintenance, faulty material,
training new operators entering new jobs into production, and time lost reporting
to first aid, allowances will be made by the foreman to reimburse the individual
against the loss of incentive earnings which he otherwise would have made.
129. Allowance for Factors Beyond the Employee’s Control, Except in Cases of
Labor Stoppage
An employee whose piecework earnings are affected by causes which are clearly
beyond his personal control shall receive pay at the rate of his average hourly



GUARANTEED EARNINGS

31

earnings for the period during which the above-mentioned conditions affect his
earnings. This does not apply when these delays are caused by labor stoppages
over which the employer has no control.
FAULTY

MATERIALS

Problem s sim ilar to those encountered in loss o f earnings due to
“ down” tim e arise when an em ployee’s potential earnings are reduced
ow ing to fau lty m aterials or bad stock.

D efective m aterials m ay not

cause total stoppage but m ay cause delays sufficient to bring about
substantial loss in earnings.

A few agreements provide specific safe­

guards against losses o f this nature.
130. Guarantee of Average Hourly Earnings; Dispute Over Conditions of Stock
Subject to Grievance Procedure
Piece and incentive rate employees whose earnings fo r a period are affected
adversely because o f faulty materials shall receive not less than their average
hourly earnings determined as in the case of down-time, but no such claim
shall be allowed unless while the condition still exists the overseer is notified by
the operative of the faulty materials. I f the overseer disallows the claim that
the materials are faulty, the operative may call the shop delegate and not more
than one other person for the sole purpose of inspecting the material and the
overseer may call not more than two other persons for the same purpose. The
operative shall then proceed with his work and be paid at his regular piece or
incentive rate unless he shall elect to have the dispute considered as a griev­
ance, in which case his rights shall be determined under the grievance procedure.
The right to have the dispute considered as a grievance will be lost unless the
grievance is presented in writing within 48 hours after the disallowance by the
overseer o f the claim that the materials are faulty.
131. Average Earnings Paid or Time Allowance Made for Bad Stock
When an operator has bad stock, trouble, or excessive handling and is told by
the foreman to continue on the job, and by using the same or more effort is
unable to make out as his usual earnings, he or she shall be paid 125 B hour
or average earnings whichever is greater, or an allowance shall be put on the
standard to cover the added effort.
132. Temporary Bate Jointly Set for Work on Abnormal Stock
When bonus employees are required to work with abnormal stock, machines,
or tools on a previously established operation and are unable to meet the estab­
lished production rate because of this abnormal condition, a temporary rate will
be established by the steward and foreman to cover the abnormal condition.
BREAK-IN

TIM E

UNDER

GROUP

INCENTIVES

W h ere incentive wages are calculated on the basis o f group produc­
tion , individual earnings m ay be im paired w hile new members o f the
group are learning or “ breaking in .”

The efficiency o f the group as

a whole m ay be im paired, and earnings fa ll, until the new employee
acquires sufficient skill and experience.

Agreem ents sometimes estab­

lish safeguards against such loss, and such safeguards are aimed at
m aintaining the earnings o f the experienced members o f the group.




32

INCENTIVE WAGE PROVISIONS

Som e agreements also specify the rate to be paid the new employee
until he can qu alify fo r piecework.
A nother form o f protection is the requirement that the group be
kept sufficiently sm all to allow adequate earnings fo r each member
o f the group.
133. Group Earnings Adjusted when New Workers Are Added to Group
When operators new on the job are placed in an incentive group, the expe­
rienced operators in the group will be compensated on the days o f occurrence
for the inefficiency created by such operators, based on the previous week’s
earnings of the same group.
134. No Overstaffing of Incentive Group
It shall be the policy of the company to keep the number o f employees in
incentive groups as low as possible consistent with efficient operation.
135. Average Hourly Earnings of Regular Employees Paid out of Group Earnings
B efore New Employee Is Entitled to Share
When an unskilled pieceworker is added to a gang job, the regular gang
employees shall divide all pooled earnings up to an amount equal to their
average hourly earnings. Any earnings above their average hourly earnings
will be credited as earnings for the new member o f the gang, and if needed, an
allowance will be made to bring the new member’s earnings up to his guaranteed
hourly rate. The length of time this clause will be in effect must be agreed
upon before its application. The length of time is dependent upon the class o f
work, but will not exceed three (3) days.
136. Day Rate to New Employee Deducted from Group Earnings hut Average
Earnings for Experienced Group To Be Maintained
A new inexperienced employee breaking in on a group operation will be paid
the occupational day-work rate o f the occupation to which he is assigned. This
money is to be deducted from the total earnings o f the group. The other men in
the group will share the balance of the group earnings as usual. In case the
earnings of the experienced men in the group fall below their average piecework
earnings on account of the new men, allowances will be made to bring their
earnings up to their average piecework earnings. This arrangement is not to
continue for more than 1 week. In cases where a number o f employees are added
to a group on piecework operation, such 1-week period will be extended for such
longer time as determined by local management which will be adequate to permit
the employees to attain a normal rate o f production.
137. New W orker Paid Guaranteed Rate Until Crete Earnings Equal Average
Hourly Earnings for Experienced Men Plus Learner’ s Guaranteed Rate
When inexperienced employees are placed in a group or crew operation, the
total number remaining the same, not including the instructor, if assigned,
the regular or experienced employees of the crew will be paid their average
hourly earnings up to the base rate of their assignment, or their piecework earn­
ings, whichever is greater, during the learning time. The learners will be paid
their guaranteed rate until such time as the total piecework earnings o f the
crew are equivalent to the average hourly earnings up to base rate for the
experienced workers plus the guaranteed rate for the learners.
138. Graduated Scale of Participation for Employees Breaking Into Incentive
Groups
The division o f piecework earnings among employees working in existing
group piecework pools shall be as follow s:



33

GUARANTEED EARNINGS

(a ) The company will pay employees who are breaking in at their regular
rate for not less than three (3) nor more than ten (10) days at the discretion
o f the management. During such break-in period such employees will not be
paid from the group earnings.
(b) At the end o f the break-in period each employee shall participate to the
extent o f not less than eighty (80) percent; should the group desire that such
employee remain at eighty (80) percent for an additional thirty (30) days, the
matter shall be taken up through the grievance procedure; at the end o f thirty
(30) days after the break-in period each employee shall participate to the
extent of not less than eighty-five (85) percent; and thirty (30) days later
each employee shall participate to the extent of not more than ninety (90)
percent. Increases in percentage above the stated maxima shall be determined
by management after consultation with the members of the group who work on
the same shift as the member in question.
139. New W orker Shares Earnings When Held Qualified by Foremen or Requested
by Incentive Group
When group incentives are applied, a new employee assigned to the group
shall not share in the group earnings until such time as he is either considered
qualified by the foreman, or his participation is requested by the group.
SPECIAL W ORK

From tim e to tim e, incentive workers w ith special skills are tem po­
rarily sh ifted by management from their regular jobs to special work
or assignm ents not on in centive; to do experim ental work or work on
sam ples; to set up m achines; to instruct new workers.

Such workers

are usually guaranteed past average earnings or a prem ium rate.
140. Employee Transferred to Special Work Paid 25 Percent Over Base Rate
Any employee with 6 months or more experience requested to perform special
work requiring particular skill, or who may be asked to work on jobs on which
no rate can or will be set, will be paid at the rate of 25 percent over his or her
regular base rate.
141. Base Rate Plus SO Percent for Special W ork
Bonus employees shall receive their base rate plus 30 percent bonus when they
are required to lose time through a shortage of material when such shortage
is directly the fault o f supervision; when they are transferred to day rated
jobs at the convenience of management; when they work on development work
where the company cannot establish temporary piecework prices.
142. Special Work at Rate of 15 Percent Above Day Rate
When an employee, earning incentive pay on his job, is interrupted in the
completion o f his current job and is requested by management to stop the job
he is working on and to work on another job that is not covered by an incentive
rate, he shall be paid for the time he spent on the nonrated job for which he
was interrupted at a rate 15 percent above his day rate.
143. Specified Percent Above Base Rate for Experimental Work
When a pieceworker is assigned to experimental work or when he is taken
from his regular piecework operation at the request of management in order
temporarily to fill a vacancy on another job, allowance shall be granted to 5
percent above base rate for the time worked on experimental work or on the
temporary job. This provision shall not apply to a permanent transfer to an­
other job.



34

INCENTIVE WAGE PROVISIONS

144. Special Work Paid at Base Rate of Piecework Job Temporarily Interrupted
Any employee who is performing a piece-rate operation and such piecework
operation is interrupted temporarily for the performing of sample work, devel­
opment work, or repair work, shall be paid the piecework base rate of the piece­
work job temporarily interrupted.
145. Regular Earnings Allowed on Transfers at Company Request
Any employee who is unable to make his regular earnings shall be allowed
the regular piecework earnings when such loss is due to shifting from job to job
when the company is at fault.
146. Guarantee of 90 Percent of Average Straight Time Hourly Earnings
On down-time, short orders, development jobs, and temporary transfers, the
hourly rates shall be 90 percent of the average straight-time earned rate per hour
fo r the two preceding pay periods.
147. Average Hourly Earnings Paid When Pieceworker Detailed to Instruction
or Experimental Work
In the following special cases pieceworkers will be paid at an hourly rate equal
to their average straight time hourly earnings for the last computed workweek:
When at the request of management an employee is temporarily taken from
regular piecework to service as an instructor, or directed to perform instruction
work at his own operation, or is required to perform work of an experimental
nature (not productive work) that would ordinarily be done by tool maker, general
machinist, or experimental mechanic.
148. Guarantee of Average Hourly Earnings Computed Over Previous Calendar
Quarter
The average hourly earnings established in the previous calendar quarter shall
be paid the operator working under the incentive pay plan for the following
work assignments:
1. Engineering production orders.
2. Experimental orders.
3. Repairs o f defective work produced by another operator.
4. Repair work (production orders or spare parts excluded) performed
for the repair section in lots of five (5) or less, or where no standard is set.
5. Performing an incentive task before a temporary or standard piece price
has been placed on his job ticket (except that when a completely new job or
station is set up, work performed shall be paid at 100 percent or base rate).
6. Machine set-ups on which no standard has been set.
7. Working on defective material or hard castings.
8. Operating with defective tools, dies, or machines.
9. Performing machine repairs.
149. Pieceworkers Paid at Average Hourly Earnings When Transferred Tempo­
rarily to a Time Basis
Whenever pieceworkers are required to work temporarily on a time basis they
shall be compensated at their hourly average earnings on the piecework previously
performed by them.
150. Guaranteed Previous Earnings on New Job So Long As Original Job Operates
When an employee is taken off any job and transferred to another job at the
company’s request, he shall, until he is transferred back to his regular job, be
paid an hourly or piecework rate on such new job equivalent to his earnings on
the job from which he was transferred, beginning with the time o f such transfer.




PERIOD FOR COMPUTING INCENTIVE EARNINGS

35

This procedure will obtain on the new job only so long as his original job op­
erates—after which he will be paid the rate for the particular job he is performing.
In any case, however, if the new job carries a higher rate, he shall receive the
higher rate.
151. Guarantee Varies with Nature of Special Jobs
Set-up time shall be paid for as follow s:
(a ) When an operator is setting up his own machine preparatory to running
the job himself—15 cents over his hourly day rate.
(b) When an operator sets Up his own or any other machine under other con­
ditions than (a ) above set-up rate as shown by appendix B.
(c ) The company agrees to pay for experimental work, short-run jobs o f two
(2) hours or less (this not to include set-up time), repair work for which the
operator is not responsible, and shop orders which do not have a piecework price,
at the rate of 85 percent of the average straight-time hourly earning rate or base
rate, whichever is higher, which was earned by the operator doing such work,
in his latest two pay checks—provided that this operator checks in and out on all
jobs.

Period fo r Computing Incentive Earnings
W h en incentive earnings are computed on the basis o f relatively
long periods o f tim e, the high earnings o f 1 day, or on one job , m ay
be offset by low earnings on another day or on another job , even when
such low earnings are due to causes beyond the worker’s control.
Agreem ents therefore often require com putation o f incentive earnings
on a job, daily or, less frequently, on a weekly basis, so that poor days
do not cut into the extra pay earned on days when the worker exceeded
the standard.
152. Pay Calculated on Job Basis
When a pieceworker has finished a job, his earning therefrom shall not be used
to build up subsequent jobs on which he fails to make guaranteed base rate.
153. Earnings Computed on Daily Basis
The company guarantees base rates under the incentive system and each day’s
earnings shall stand for itself.
154. Modified Daily Computation of Incentive Earnings
Further, in no case shall an employee receive for a given day less than the
amount earned by him as a result o f the application o f piecework, tonnage, or
incentive rates. The turn guarantee o f incentive earnings shall not apply on an
individual turn basis to those operations concerning which it is not practicable to
calculate such incentive earnings on the single turn basis, but shall in such cases
apply on the smallest practicable number o f eight (8) hour turns.
155. Incentive Earnings Calculated on W eekly Basis
Bonus earnings for all employees working under the incentive plan shaU be
computed on a weekly basis.

Equal Opportunity Under the Incentive Plan
In factories operating under an incentive system certain piece or
bonus rates m ay allow higher daily earnings than rates fo r other w ork



36

INCENTIVE WAGE PROVISIONS

involving the same operations. A lso efficiency o f plant operation fre­
quently requires that pieceworkers be shifted to day work fo r b rief
periods o f tim e. T o avoid favoritism in distributing the work am ong
employees some agreements provide that work be distributed equally
am ong those eligible so that all employees have equal opportunity to
earn the incentive bonus.
156. Equal Opportunity to Earn Bonus
Whenever employees work under an incentive system, every effort will be
made to distribute work as equitably as practical among incentive workers so
that aU workers in the group have an equal opportunity to earn bonus.
157. Bay Work Shared Equally
Every effort will be made to distribute day work equally among piecework
employees.




C h a p t e r II.— T i m e S t u d ie s a n d S t a n d a r d s o f P r o d u c t i o n

Introduction
W hether wages are computed on a tim e or incentive basis, there is
usually some form al or inform al determ ination o f the output ex­
pected o f employees on each operation.

T h is expected production is

com m only called the work load or production standard and represents
the am ount o f work required or expected to be done in a given tim e
by the average, qualified operator under norm al conditions, w ith due
allowance made fo r rest periods, fatigue, machine stoppages, m aterial
shortages, etc.

In practice, it m ay be expressed in term s o f expected

units o f output per hour or per day, or in terms o f machines to be oper­
ated at some standard rate o f efficiency.
Production standards are commonly determined through tim e study,
i. e., by determ ining the tim e norm ally required to perform an opera­
tion in a test run. Production standards m ay also be based on past
experience or production records or on “ rule o f thum b” determ ination.
The method o f determ ining standards upon which the wage is
based is as im portant as the method o f paym ent, whether tim e or in ­
centive.

Because o f the vital interdependence between production

standards and incentive wages and to the extent that tim e study is the
method used to determine job assignments and work loads, unions and
management seek safeguards to assure a fa ir tim ing o f a representa­
tive job. T h is chapter enumerates the variety o f clauses governing the
conditions under which tim e studies are to be m ade; the conduct o f
tim e studies; review o f tim e-study resu lts; and clauses relating di­
rectly to speed o f operations and work loads as a specific safeguard
against unreasonable work standards.
A m on g the wide variety o f clauses dealing w ith tim e-study and
production standards, aimed at assuring fa ir tim ings and reasonable
work loads, are those which (1 ) provide fo r union participation in
tim ing or in re-tim ing jobs and in setting new or revised standards;
(2 ) provide fo r the selection o f the typical worker to be tim ed ; (3 )
stipulate that tim ings shall be held only under “ norm al” job condi­
tio n s; (4 ) prohibit secret or concealed tim e studies; and (5 ) spell out
in general or in detail the tim e allowances fo r unexpected difficulties
and personal needs which are to be considered in setting the work load.
Som e agreements specify the size o f the m inim um crew required fo r
certain jobs or machines.




37

38

TIM E STUDIES AND PRODUCTION STANDARDS

A ppeals from tim ings o f production standards set by m anagement
are often provided, either through the regular grievance procedure or
through some special arrangement. Some agreements also contain
assurances to management that the workers w ill cooperate in tim e
studies and that reasonable production standards w ill be m aintained.

Union Participation in Time Studies and in Setting Production
Standards
T he degree o f union participation in tim ing and setting production
standards varies greatly.

U nion participation on an equal basis w ith

m anagement in the installation and adm inistration o f production
standards and tim e studies does not occur except in a few special situa­
tions where union representatives have been put on the com pany’s
tim e-study staff, or where the union is aiding m anagem ent in the intro­
duction or over-all modification o f an existing incentive plan.

In such

cases, management m ay agree (or m ay be required) to train union
personnel in tim e-study techniques and procedures.
Advance notification to the union o f any contem plated change in
established standards is required under some agreements.

Som e

clauses specify the period o f advance notice; others do not. A further
extension o f this form o f participation is provided through clauses
which call fo r collective bargaining in the determ ination o f new or
revised standards.
W here the union is not granted the righ t o f advance participation in
tim in g or in the adoption o f new work loads, it is generally allowed to
appeal the production standards set by management. The regular
grievance procedure m ay be follow ed, or provision m ay be made fo r
accelerated grievance m achinery. Som e agreements specifically rule
out arbitration on this issue; whereas others require arbitration.
Such clauses m ay state that the arbitrator m ust be a technically quali­
fied person.

In addition to the use o f grievance m achinery, join t

union-m anagem ent tim ing o f the disputed standard m ay be specified.
V ariation s on this procedure provide fo r union observation o f re­
tim in g by management, or fo r re-tim ing by union representatives or
a union-paid tim e-study technician.

Other agreements require the

com pany to re-tim e jobs at the request o f individual employees or the
union, but make no provision fo r union participation in such re-tim ing.
W h ere the union has agreed not to be a party to the tim e studies, it
m ay reserve its right under the contract to bargain on all m atters
pertaining to the tim e study such a s : basic form ulas used, defining o f
average conditions, leveling factors and other tim e allowances.
1. Introduction of Time-Study System by Mutual Agreement
A system o f scientific management and time and motion study for the setting
of piece rates may be introduced by an agreement between the employer and



U N IO N PARTICIPATION

39

the union. All timing shall be subject to the inspection and approval o f the
shop committee.
2. XJnion-Management Cooperation in Timing Jobs
The company and shop committee shall cooperate in timing jobs so as to avoid
speed-up and inefficiency and secure a satisfactory rate of production.
3. Union and Management Time-Study Representatives to Assist Each Other
The foreman may request a time-study man or a time-study steward to come
into the department to study and time any job on which a question has arisen.
Any time the company time-study men find they need the assistance of the
time-study steward they will call a time-study steward in on the job in question.
Likewise any time the time-study stewards find they need the assistance of the
time-study man they will call the time-study man in on the job in question.
4. Collective Bargaining on All Matters Pertaining to Time Studies
The union is not a party to the time studies, but it shall have the right to
bargain collectively concerning all matters pertaining to the time studies, in­
cluding the basic formulas used, the choice o f the operator to be timed, the
defining of average conditions and the determining of the leveling factors and
other time allowances.
All time studies shall be available to the employe through the officers o f the
union at any time.
5. Company to Re-time Job Within 24 Hours A fter Request From Employee
Employees shall have the right to question the time study of any job that
may appear to be improperly timed, and through the proper person or persons
to request the re-timing o f any job. Upon receipt of a request for re-timing,
the company shall have twenty-four (24) hours from the receipt o f such request
for such re-timing. Any increase or decrease in the rates shall be retroactive
to the time o f request.
6. Re-timing at Request of Employee or Union Limited by Existing Time-Study
Staff
In all cases where a time study is made, the time study shall be signed by the
foreman and the time-study man. I f the employee feels the time is too tight,
it will be restudied at the request of the employee or the union, but the employer
shall not be requested to process re-time studies in excess of the number which
can be processed by the normal time-study staff without interfering with its
normal and routine functions.
7. Union or Management May Request Additional Time Studies during Trial
Period
Both union and management shall have the right to question time standards
prior to final acceptance and shall have the right to request that additional time
studies be made by the standards department during a period of fair trial by the
operator of not more than thirty (30) days. Any disagreement will be handled
through the regular grievance procedure.
8. Union Review of Time Studies
Standards and piece rates, once established, will be made available to em­
ployees when clocking in on the job. Employees will be informed of all new
standards within twenty-four (24) hours of the application of the new standard.
The union, upon request, may review time studies in consultation with the timestudy supervisor.




40

TIM E STUDIES AND PRODUCTION STANDARDS

9. Disputed Standard Re-timed l)y Employer and Then Jointly if Re-timing is
Questioned
I f any of the standards of production are questioned, they shall be re-timed.
If, after re-timing, they are still in question, a joint time study shall be taken
by the company and representatives of the union to arrive at an accepted standard.
10. Joint Re-timing of Disputed Standards
All operations will be timed on the basis of a normal operator working under
normal conditions at a normal rate o f speed. Any work standards for a job
believed by the union to be unsatisfactory will be re-timed, and, if still unsatis­
factory to the union, will be timed jointly by the union and the company.
11. Re-timing by Company and Representative of International Union
Employees shall have the right to question the time study o f any job that
may appear to be improperly timed, even to the extent of asking for a re-timing on
any job.
In case of a dispute in the time of any operation, the operation in question will
first be re-timed by the company in the presence of a committeeman. I f a fur­
ther dispute results, the operation will be re-timed by the company and a qual­
ified employee o f the international union, production to be run by both company
and union representatives for comparison.
12. Multi-Step Rate Review Procedure ( ( 1) Employer makes time study;
(2) Submitted to union rate check committee; (3) I f disputed, steps include
recheck of rate by employer; joint time study; appeal to grievance
procedure.)
After the time study has been made, the rate setting department o f the employer
shall immediately place the rate on the job and submit a form containing a de­
scription of the operation and the rate set on the job to the union rate checking
committee. When the rate has been checked and approved by the union rate
checking committee, the form shall be signed and returned to the employer who
will give the union a duplicate copy.
If a rate is rejected, the union rate checking committee shall notify the employer
who shall within 1 week therefrom recheck such rate. If, upon such recheck, the
rate remains unsatisfactory to the union rate checking committee, another time
study shall be made jointly within 2 weeks by a time-study man of the employer
and a representative of the union designated by the union rate checking committee.
If the employer fails at this time to make such joint recheck within said 2-week
period, the classified average rate shall be paid to such operators on the job.
I f the recheck is made during such time limitation and the rate after this pro­
cedure is still not accepted, the rate shall continue pending its being taken up
under the grievance procedure outlined in article X X V and article X X V I of the
basic agreement (grievance and arbitration).
In the event that any rate is adjusted either by agreement between the parties
or during the grievance procedure, such adjustments shall be retroactive to the
date of the original setting o f the rate on the job.
13. Joint Review of Time-Study D ata; Joint Re-timing of Disputed Timing
When time studies are to be made, they shall be made openly and the depart­
ment steward shall be informed that the time study is to be made. After the
time study has been completed, the department foreman will advise the department
■steward the price that has been determined and present the time study to the
department steward for his approval. I f the steward finds the facts contained in
the time study to be correct, the steward shall approve the time study by signing it.
I f the steward questions the correctness of the time study, the company and the
steward shall recheck the data on which the price is based. I f no agreement



U N IO N PARTICIPATION

41

can be reached, the company shall notify the bargaining committee, and they shall
settle the disputed time study, or, if necessary, time the job together and this
joint timing, together with the original timing, shall be used as the basis for
arriving at a correct price.
14. Joint Observation o f Re-timing o f Disputed Standards
When re-timing of any job becomes necessary because o f a written grievance
being filed by an employee, the company shall recheck the time study promptly.
If, after such recheck, the standard is still in dispute, the departmental foreman,
and then the steward, or one of the shop committee, shall be notified and permitted
to jointly observe a re-timing. Any adjustment o f a bonus standard which may
result from such procedure shall be retroactive to the date upon which the
grievance was filed by the employee or employees involved provided the adjustment
is upward, otherwise the new standard shall become effective when established.
15. Disputed Standards Re-time and Reviewed by Joint Committee (Union may
question standards for new or changed jobs. Standards not challenged
within 30 days are fixed for duration o f agreement or 1 year, whichever is
shorter. Employee improvements safeguard standard for term of agree­
ment or 1 year, whichever is shorter.)
In furtherance of our present practice, regarding work incentives, and to
foster cooperation between men and management, a joint committee (agreed upon
by the parties hereto) is to be appointed for the purpose of investigating any
work incentive rates that may be questioned.
Either party may question the correctness of new time standards, except that
the employer shall not change for the duration of this agreement, or for a period
of one (1) year, whichever is the shorter, a standard by reason of improved
motions and processes introduced by employees so long as the character of the
particular job remains the same. The employer may at any time change the
time standard when the same results from a change in methods, machinery,
tools, fixtures, materials, or design. The union may also question the correct­
ness of standards restudied by the employer as the result of a change in methods,
machinery, tools, fixtures, materials, or design as well as standards established
by the employer for new operations.
All standards revised or established as provided in the paragraph above shall
go into effect at once, but shall be considered temporary during a period of thirty
(30) days. I f such standards are not questioned within said period they will
become permanent. If such standards are challenged within the thirty (30)
day period, they will be promptly re-timed and reviewed by the committee, which
shall consist of not more than three (3) members appointed by the union and
three (3) members appointed by the corporation. I f any such standard is later
changed as the result of the committee review, the change shall be made retro­
active to the date when the revised or new standard went into effect or to the
date when either party questioned the existing standard, as the case may be.
After a standard has been restudied, as above provided, it shall remain in
effect for the duration of this agreement, or for a period o f one (1) year, which­
ever is the shorter, so long as there is no further change in methods, machinery,
tools, fixtures, materials, or design.
16. Union Allowed 48 Hours to Check Time Study; Objections Handled by Griev­
ance Procedure
In establishing a base rate, hourly rate, or piecework price, or when changing
a base rate, hourly rate, or piecework price, the company will proceed to make
a thorough study and record of all factors which determine what the new rate
should be. When all such data have been recorded and the new rate determined



42

T IM E STUDIES AND PRODUCTION STANDARDS

in that basis, the district representatives representing the department affected
will be notified and given a maximum of 48 hours to check the time study and
facts. If no reasonable objection is raised the proposed rate may be posted,
at the option of the company to become effective after 3 working days, or sooner
if mutually agreed to. Upon written objection being presented to the manage­
ment by the union, the same shall constitute a grievance to be negotiated through
the regular established channels.
17. Union Technician to Study Disputed Standards
In the event that the question of the fairness and reasonableness of the work
load assignment or assignments shall become a grievance, then the union shall
have the right to have one time-study engineer inspect and study the job in
question. Such inspection and study shall be made after reasonable notice to*
the employer.
18. Company Studies on Disputed Operation Made Available to Union Technicians
Who May Make Independent Studies
Where a dispute arises concerning the rate of a piecework operation, union
representatives, trained in motion-time analysis, will be allowed to time study
such operation. The studies made by company representatives on the disputed;
operation shall be available to the union representatives.
19. Union Observer of Re-timing of Disputed Standards
It is understood and agreed that in the event it is necessary to take a timestudy on any operation to establish a new piece price or to adjust piece pricesnow in effect, the time study shall be taken by the company and submitted to the
union for approval. If found to be unsatisfactory the time study shall be re­
taken with a representative of the union present.
20. Union Observer at Re-timing Paid at Day Rate
It is agreed that if and when a job is being re-timed as the result of a grievance,,
as set forth above, either a qualified and competent union steward or committee­
man may observe the operation while the timing is being made and that such
observer shall be given an opportunity to discuss results of the time study with
the appeals committee at the appeal stage by whom the matter would then be
reviewed. The committeeman or steward selected to observe the timing shall becompensated for his time in so doing at his day rate.
21. Union Observer at Re-timing Not Paid by Employer
In the event an employe is dissatisfied with the new time established, a recheck
of the new time will be made and the steward of the section in which the com­
plaint arises and the chief steward may be present at the time of the recheck, but
shall not be paid by the company for their time. Time studies shall be kept
on file in the standards department and shall be available for inspection by union
officials, who are employees of the company, above the rank of section steward.,
22. Company May Attend, But Is Not Bound by Union Re-timing o f Disputed
Operation
Wage classifications and piece rates on new and changed operations shall be
established and submitted by the company to the union and, unless objected to in
writing by the union within thirty (30) days after submission, shall be considered
approved. If the union objects to a proposed or submitted price, and negotiations
fail to resolve the dispute, then the union may, if it so elects, undertake a time
study in preparation for the arbitration o f the disputed issue. The union will
give the company reasonable notice of the time when, and the place where, the
time study will be made, and the company shall have the right to be present, but



U N IO N PARTICIPATION

43

nothing herein contained shall cause the company to be bound by the results of
that time study. I f the new wage classifications or piece rates established and
submitted by the company are objected to by the union, in accordance herewith,
and are subsequently revised as a result of negotiation or arbitration, the revised
xate shall be retroactive to the time when the work was put in operation.
23. Union Given 1 Day's Advance Notice of Change in Work Standards
The company shall re-time any job due to change in methods, design, style, or
•error and in such cases the company shall notify the department steward the
day prior to the day on which the new standard shall become effective.
24. Advance Notice of Change in Work Load; Period Not Specified
The company shall notify the union in advance of any change in \he work
loads. The reasonableness of any such increase shall be subject to the provisions
•of article X I (grievance and arbitration) hereof but the company may put the
same in effect pending the processing of any grievance thereon brought by the
union.
25. Advowee Notice o f Charge in Work Load: 7 Days
It is expressly recognized and agreed that the best interests o f the company and
of the employees require efficient and reasonable work loads, which should include
reasonable fatigue time and all other usual elements considered. It is, therefore,
agreed that the company shall have the right to change work loads from time
to time for the purpose of obtaining and maintaining efficient and reasonable work
loads and machine and labor standards.
The company shall give the shop committee 7 days’ written notice of any
proposed change which might reasonably be expected to involve a change in work
loads, unless the proposed change is of an emergency character or requires prompt
adoption because o f its adverse effect upon other operations in the plant, in which
case, such notice as is reasonable and practicable under the circumstances shall
be given. If so requested, the company will promptly meet with the shop com­
mittee for the purpose of discussing the proposals.
26. Collective Bargaining on Work Loads on SO Days' Notice
The company agrees that if the work load of any machine or any member of
the union be increased beyond that of the regular work load of the machine or
such member as it existed [date], other than with the replacement of obso­
lete machinery by machinery o f the type now in operation in any other of the
plants of the employer, then this shall be an occasion upon notice from the union
for proceedings as provided under article I V 1 of the contract between the parties
hereto.
27. Union and Employer Meet to Set Up Production Standards
The union shall meet with any employer and shall set up a minimum production
standard in any individual plant at the employer’s request. Any expense incurred
shall be paid by the employer * * *.
28. Standards of Production Negotiated by Union, Employee, and Employer;
Standards Effective on Posting
“Fair standards” of production and quality of work shall be established by
agreement between the plant committee, the individual, and the management, in
1 At any time during the life of the contract either of the parties hereto may, by thirty
(30) days’ written notice to the other, request reconsideration and alterations or amend­
ments to this contract, such notice to set forth all of the alterations or amendments to be
considered. The parties hereto shall therefore meet together and such alterations and
amendments to this contract as specifically stated in the call notification shall become
effective and part of this contract if agreed to by both of the parties hereto.




44

TIM E STUDIES AND PRODUCTION STANDARDS

proportion to the standards attached to and made a part o f this agreement.
Present fair standards of production shall remain posted without change until
new standards are created and approved by the plant committee. No new standard
on any item shall be changed until posted. All standards shall be posted in each
department in order to be effective.
29. Disputes Regarding Work Loads Subject to Regular Grievance Procedure
When changes occur in the operations that will substantially affect the work
load of any group of employees, the job will be studied and standards set up in
accordance with the employer’s usual procedure. I f the employees believe that
the work load resulting from the changed method exceeds the reasonable working
capacity 0 average or normal operators, the matter may be taken up through
/
the grievance procedure. It is agreed that the employees will continue to perform
the operation pending a decision on the grievance. I f the arbitrator finds that
an adjustment in wages should be made, it shall be retroactive to the date of the
change in the job.
30. Appeal of Work Load Through Gt'ievance-Arbitration Procedure A fter Trial
Period
The employer may have the right to make routine changes as conditions require
and to introduce new machines, processes and methods of manufacture. In the
event the employer proposes a change in a job assignment in connection with the
above and no agreement is reached with the union on the proposed change, there
shall be a trial period of 4 weeks, during which time the employees affected will
be paid not less than their average hourly earnings for the preceding 3 months.
At the end of the trial period, if there is still no agreement the matter shall be
determined by arbitration as provided in this agreement. All other changes shall
be by mutual agreement or be determined by arbitration as provided in this
agreement.
31. Accelerated Grievance Procedure
In the event that there occurs any change in method, products, tools, material,
design or production conditions, the situation will be time studied by the standards
department. Every effort will be made to complete the study within a period of
thirty (30) days. The standards department will establish standards for the
new operation and these will be effective immediately. In the event that the
union has any objection to the new standards, the matter should be taken up with
the company under step No. 4 of article VI, section 3, of this agreement. I f not
adjusted at such step of the grievance procedure, the matter may be further taken
up through the successive steps of the grievance procedure, culminating if neces­
sary, in arbitration. The effective date of any disposition, whether voluntary or
by arbitration, shall be the date the changes were effected. I f no grievance is
brought to the attention of the company within thirty (30) days, it will be
presumed that the standards are satisfactory.
32. Designation of Technical M om as Arbitrator to Settle Differences Over Pro­
duction StaAidards
Attempted enforcement by the company of standards of production claimed
In writing to the company by the union to impair the health or safety o f employees
may be, in the discretion of the union, grounds for waiver of section 1-b, article
V,1 in which case the provisions of section 3, article V,1 shall apply, unless during
2
1 No strike on any disputes relating
and the express right to determine and
2 Section 3, article V provides that
until strike action is authorized by the




to matters for which the company has responsibility
decide.
negotiations shall continue for 15 working days or
union.

U N ION PARTICIPATION

45

the fifteen (15) working day period provided in section 3, article V, the parties
agree to retain the services of a mutually acceptable industrial engineering con­
sultant to review the production standard in question and render a decision
binding on the parties.
33. Arbitration by Board* of Technicians; Retroactive Rates Determined by
Arbitrators
I f replacements of machinery are made, or changes made in production o f ma­
chinery or methods o f work, or changes in construction of yarn or cloth, proper,
work assignments therefor will be made by the company. Any grievances or com­
plaints resulting therefrom shall be handled as follow s: Either party hereto may
by written complaint to the other, raise the question of whether any overload
has resulted therefrom. In such event, if the complaint cannot be adjusted to
the satisfaction of both parties each party hereto agrees that it will select an
engineer or textile technician to study the basis of the complaint and that the
parties hereto shall lodge such complaint with the parties so selected at the ear­
liest possible date, and not later than four (4) weeks after date the complaint is
served on the adverse party. If the company proposes to change the work assign­
ments on present machinery and yarns and cloths it shall submit its proposal to a
technician selected by the company who shall in turn take the matter up with a
technician selected by the union. In case of disagreement the matter will be han­
dled in a manner similar to that described in paragraph (b) where a grievance
or complaint cannot be settled by the two (2) technicians referred to.
Any agreement reached by the parties so selected shall be final and binding upon
the parties hereto. If, however, the parties so selected shall fail to reach an
agreement within four (4) weeks after such complaint has been submitted to
them they shall select an engineer or technician as a third party and if unable
to agree on such engineer or technician, then the two (2) shall within five (5)
days make a joint request of the Director of Conciliation of the United States
Department of Labor to designate the third engineer or technician and the de­
cision of the majority of the three textile engineers or technicians shall be final
and b inding upon the parties hereto.

T he expense o f the engineer or tech n ician

who serves as the third party, if one be selected or designated, shall be borne
equally by the company and the local union.
The adjustments of such complaints or decisions of the selected parties shall
prevail with the company and the union for future operations. In case of a de­
cision by the selected parties where considerable length of time has been con­
sumed in arriving at such decision, the selected parties shall have the right to
determine what adjustment, if any, should be made on wages paid to persons
affected by such decision.
34. Arbitrator's Jurisdiction in Disputes Over Production Standards Itemised
It is understood and agreed that in the case of grievances involving production
standards the arbitrator, under paragraph 59, shall have only the power to
decide—
(1) Whether through error insufficient credit is being given in connection with
an existing standard.
(2) Whether, in the case of a changed standard, the operation has been
changed so that the amount of work required to perform the job has changed.
(3) Whether an approved standard has been reduced when there was no change
in the job.
(4) Whether a standard after being changed will permit the same opportunity
for earning premium as existed under the original standard.
The arbitrator shall have no power by his award to establish, discontinue, or
change any production standard.



46

TIM E STUDIES AND PBODUCTION STANDARDS

35. Arbitrator Limited to Disputes Over Changes in Present Work Loads
The grievance and arbitration provisions in this contract shall not be applicable
to existing work loads, but only to changes in presently existing work loads.
36. Final Appeal to Union Time-Study Committee and Management
The fact that an established production standard may be disputed by
employees and examined by the union time-study steward, does not of itself
invalidate the standard. Therefore, employees shall be required to apply normal
effort for the entire work period at all times, even though the standard produc­
tion has previously been reached or is in dispute. Disputes or grievances arising
With respect to production standards shall be resolved in the following manner.
(a ) The aggrieved employee may first discuss the matter with his immediate
supervisor or
(b) Inform the supervisor that he has a dispute pertaining to a particular
standard and request him to inform the department steward to call union timestudy steward having jurisdiction in the department involved to resolve the
dispute. The time-study steward shall make an audit o f the basis on which the
standard was established, and make a time study if necessary. The time-study
steward shall complete such audit or time study as soon as possible and discuss
the matter with the divisional time-study supervisor.
(c) If the dispute or grievance is not settled in the preceding step, the case
shall be appealed, within three regular calendar working days on a triplicate form
provided by the company, to the time-study committee and representatives of
management. The decision of this group shall be final and binding on the
company and the union.
The union time-study committee shall be composed of five (5) members dis­
tributed as follow s: Two (2) for plant 15; one (1) for plant 16; one (1) for
plant 21; one (1) for plant 70.
37. Arbitration Excluded; Date of Retroactive Adjustment Specified
The claim that a time standard is not equitable shall be deemed a grievance,
and be subject to process through all steps o f the grievance procedure up to
but not including the final step of arbitration. Any change in the rate deter­
mined from processing in the grievance procedure shall be retroactive to the
beginning of the pay-roll week nearest the date of the written grievance.
38. Union Time-Study Stewards Trained by Company and Paid by Union
In order to assist the union in its efforts to expeditiously adjust alleged
grievances with respect to established standards the corporation shall undertake
to instruct and train time-study stewards, who shall represent the union in the
investigation and study of alleged grievances relating to such standards. These
stewards shall be selected from employee members of the union on the basis of
abitity and aptitude to serve in such a capacity. It is understood and agreed
that time consumed by such stewards during regular working hours in seeking
the adjustment of alleged grievances involving established standards shall be
compensated by the union.
39. Two Union Representatives Assigned to Work Full Time in Company's TimeStudy Department
In order to promote more complete understanding o f the plant’s wage standards
plan, two employees selected by the union and acceptable to the company shall
be assigned to the methods and standards department on a full-time basis. Said
employees shall be under the direction of the methods and standards engineer
and shall do such work as may be assigned to them by him, and in assigning



U N IO N PARTICIPATION

47

work to them he shall give priority to work relating to wage standards plan
grievances.
Said two employees shall be informed, if possible prior to application, o f all
new standards applied, and all changes in computations or general time-study
procedure shall be explained to them promptly. For the purpose of checking the
proper application of standards and the accuracy of premium computations, said
two employees shall have the same access as the company time-study personnel
has to premium computation sheets.
40. Union Time-Study Representatives Paid J y Company During Training
>
Period
The employer agrees to provide, at its own expense and outside of working:
hours, classroom instruction courses in its time-study procedure, including the
plan or method of establishing incentive rates, to six members o f the shop
grievance committee designated by the union and to pay such members for time
spent in attendance at such classroom instruction at their straight-time hourly
rates: Provided, however, That time spent at such classroom instruction shall
not be regarded as “hours worked” in the computation of any overtime payments
and that the employer shall not be required to provide such instruction courses
more often than once, or to more than six of such members in any twenty-four
(24) month period.
41. Company-Trained Union Time-Study Men May Make Independent Check o f
Disputed Standards; Must Furnish Company List of Activities and Copies
of Time Studies Made
The union shall nominate three unit B employees who, if acceptable to the
company, shall be trained as time-study men and who, upon the completion o f
their training, shall be employed as such on a full-time basis for the term of this
agreement. The three time-study men above mentioned, while being trained
(approximate duration of training period, 4 months) will be paid their past
average hourly earnings for the 6 months immediately preceding their training
period exclusive of any shift extra or overtime earnings. The pay allowed by
the company to the selected time-study men shall not be less than $1.30 nor more
than $1.90 per hour.
Union time-study men shall have the same preferential seniority as is guaran­
teed other union representatives.
The union time-study men will cooperate with management for the purpose*
of obtaining the proper application of the basic principles of the incentive plan
and the proper administration of same, but the establishment of incentive stand­
ards (M-values) shall be the responsibility of the company. Whenever the
union time-study men may be called upon to investigate an incentive standard
they shall make an independent detailed time study in accordance with the
principles of the incentive plan as set forth in exhibit C hereto. They shall ac­
count daily to the standards department for time spent in general time-study
work, listing and filing all time studies made by them with the standards
department.
In the event that any union time-study man is unable or fails to properly per­
form his duties either the union or the company shall have the right to require
that he be relieved as a union time-study man upon a showing o f just cause,
whereupon he shall be returned to his previous job classification and replaced by
a new union time-study man nominated, approved, and trained as aforementioned.
42. Procedure for Selecting Union Representatives for Time-Study Training
The company and the union agree that the union shall have time-study repre­
sentatives trained in time-study theory and practice for the purpose o f repre­



48

TIM E STUDIES AND PRODUCTION STANDARDS

senting the union in grievances involving piecework prices, subject to the following
conditions:
The union shall submit to the company the names o f ------ employees who
shall meet qualifications set up in advance by the company. From this group the
company shall select the names o f ------ employees who, in the judgment o f the
company, have the necessary qualifications.
From th e ------ names accepted by the company, the union shall select two (2)
whom the company will train in its piece rate department f o r ------ . For such
training period the company will pay these two (2) employees so selected their
guaranteed hourly rate. When the employees are so trained they shall return to
their regular job in the plant. These employees shall be designated as “union
time-study representatives.”
43. Minimum Qualifications Specified for Union Time-Study Stewards (The
company may challenge the stewards’ qualifications through the grievance
procedure.)
The union time-study committee shall be composed of five (5) members dis­
tributed as follow s: Two (2) for plant 15; one (1) for plant 16; one (1) for
plant 21; one (1) for plant 70.
Time-study stewards shall report directly to the industrial relations coordinator
o f their respective plants. They shall devote full time to matters pertaining to
time standards as set forth in this article.
Time-study stewards shall be elected for a term of four (4) years. The term
o f at least one and not more than two members of the committee shall expire
each year.
Time-study stewards shall be selected by the union from candidates who have
the following qualifications:
(a) A high school education or its equivalent.
(b) A minimum of three (3) years’ shop experience with the company.
(c) A minimum of one (1) year training in a qualified time-study school or
its equivalent.
It is agreed that the company has the right to question through the grievance
procedure the qualifications of those elected.

Union Safeguards on Timing
In cases where the union does not participate in the in itial tim in g or
re-tim ing o f incentive jobs, a variety o f safeguards m ay be set up to
assure a fa ir tim ing.

On the whole, these are directed tow ard protect­

in g the workers from the effects o f tim e studies which m ay be con­
ducted arbitrarily and w ithout regard to relevant human and job
factors rather than against time studies as such.

These safeguards

are aimed to assure proper selection o f workers to be tim ed ; m ainte­
nance o f actual w orking conditions during the period o f stu d y ; and
specification o f tim e allowances for lost tim e, fatigu e, personal tim e,
etc.
A nother type o f safeguard is generally concerned w ith m aking in ­
form ation regarding tim e studies available to the union.

W ith in this

broad category are clauses which grant the union the righ t to witness
the re-tim ing o f a job by management or to accompany a tim e-study



49

UN ION SAFEGUARDS

m an in the investigation o f a grievance; prohibit secret tim e studies;
require notice to the union o f tim e-study results; and allow the union
to examine factors and elements used in m aking the tim e study.
SELECTION

OF WORKERS

TO

BE

TIMED

U nion ’s concern w ith tim e-study procedures frequently centers on
the choice o f workers to be tim ed.

T he tim ing o f an employee w ith a

record o f high speed and efficiency m ight result in standards which
the average worker would find difficult to attain.

A s a safeguard

against such developm ents, some agreements state how the typical em­
ployee to be tim ed shall be selected.

U nion and m anagem ent often

agree to select join tly a m utually acceptable employee.

Standards are

sometimes determined by tim ing two workers, one chosen by manage­
m ent, and the other by the union.

Som e clauses, on the other hand,

do not provide fo r direct union participation in selecting the worker
to be tim ed, but m erely specify that the worker chosen fo r tim ing be a
norm al or average operator on each job.
44. Foreman and Shop Committee Select Workers To Be Timed
Piecework prices shall be set on the work of one or more employees selected by
the foreman and the shop committee, which men shall be skilled in their line of
work.
45. Employer and Union Time-Study Men Select Workers To Be Timed
The time-study representatives o f the company and of the shop committee shall
cooperate in picking the operators to be timed.
46. Employer Selects Worker To Be Timed; Union May Challenge Employer’s
First Choice Only
Piece rates for pieceworkers shall be determined as follow s: The employer shall
select from among the pieceworkers o f the appropriate section one person to time
the operation. Should objection to this selection be made by the shop committee,
the employer shall have the final right to select any other pieceworker from the
same section to make the test.
47. Standard Based on Average Time of Workers Selected and Timed by Employer
and Union Respectively (This procedure applies only when the parties
are unable to agree on an operator to be timed.)
Where timing is required to determine a price for a given operation, such timing
shall be done in the factory by the workers o f the particular branch involved.
The worker chosen shall be satisfactory to both parties. In the event either side
cannot agree to any one particular timer, the firm shall time one of its own choice
and the union shall time one of its choice. The price shall be determined by the
average result of the two workers timed.
48. Times of Fast, Medium, and Slow Workers Averaged
In setting up piece prices the basis shall be a fair average wherever possible of
at least three workers performing the same kind of work. The average shall be
based on—
(1) A fast worker.
(2) A medium speed worker.
(8) A slow worker.



50

T IM E STUDIES AND PRODUCTION STANDARDS

49. Definition of Normal Worker for Timing
The normal incentive rates shall represent the rate to be paid an incentive
worker, working at a normal incentive pace. This normal pace is not to be the
pace of the fastest worker, but shall represent the average unrestricted
performance of the average worker.
It shall represent a performance of the average worker working efficiently at a
job which has been subjected to adequate time and motion study, and shall not
represent the performance o f an untrained or inefficient worker on a job which
will require weeks for the development of coordinated effort.
This means that the normal worker, operating with normal effort, should earn
the incentive rate for normal workers; poor workers should earn less, better
workers more.
50. iAdjustment Made if Operator Timed Is Above or Below Average Ability
If the operator demonstrates exceptional ability during the period of time
study, additional allowance will be included in the rate. I f the worker is un­
skilled or inefficient, the time-study man may request an average operator to
time-study, or may adjust the allowance so that the rate will apply to the
average man.
MAINTENANCE OF NORMAL OPERATING CONDITIONS DURING TIME STUDY

A nother problem is to insure that the w orking conditions during the
tim e study approxim ate actual or norm al job conditions.

Few agree­

m ents, however, spell out how norm al job conditions shall be approxi­
m ated or determined, although some prescribe the conditions under
which studies are to be conducted and certain factors taken into ac­
count. T he usual clause on this point is a statement or the com pany
pledge o f “ f airness” that the nature o f equipment used, plant efficiency,
and expected quality o f workmanship w ill be taken into consideration
during tim e studies.
51. Policy of “Fairness” To Be Folloioed
All labor time standards shall be established in conformity to present timestudy practices of the company. These practices require that fair consideration
shall be given to the requisite quality o f workmanship and the reasonable work­
ing capacities of normal employees.
52. All Time Studies To Be Conducted Under Normal Conditions for at Least
One-Half Hour
All time studies are to be taken to assure a fair test under normal conditions.
The time-study man shall remain on any job studied not less than one-half hour
and the rates shall be set and the employees notified within 2 hours after a study
is completed.
53. Advance Discussion With Union Committee Regarding Speed of Operations
The policy regarding the speed of operations shall be discussed with the shop
committee before final determination is made on any operation or job. Company
management and shop committee shall cooperate in setting a fair standard o f
production on all operations.
TIM E-STUDY

ALLOWANCES

I t is the usual practice in setting standards through tim e study to
make allowance fo r personal needs, lost tim e beyond the worker’s con­



U N ION SAFEGUARDS

51

trol, and the special character o f the job. Some agreements stipulate
that specific allowances shall be made in the tim ing, although few sys­
tem atically list all the factors to be taken into account. Som e agree­
ments specify the precise amount and type o f allowance to be m ade,
w hile others m erely state generally that tim e allowance shall be made
fo r such factors.
54. “ Reasonable” Allowances for Fatigue, Personal Needs, and Other Factors
Time values will be set by the company on the basis of the average time o f an
average skilled workman, working at average speed under normal conditions,
with reasonable allowances for fatigue, personal needs, and other factors recog­
nized in sound time-study methods.
55. Allowances Itemized
Minimum allowances shall be established as follow s:
Personal: 5 percent of total cycle normal time.
Contingency: 2 percent of total cycle normal time.
Fatigue (placed on elemental normal manual working tim e ):
2 percent—light bench assembly; light machine w ork; light jig or
fixture and part.
5 percent—medium bench assembly; medium machine w ork ; medium
jig or fixture and part.
8 percent—heavy bench assembly; heavy machine w ork; heavy jib
or fixture and part.
12 percent—extra-heavy work (as sledging) ; without hoist or chain
fall.
Fatigue allowance shall be placed according to the job when time-studied.
56. Specified Allowance for Unavoidable Delay and Fatigue
Before the actual timing begins the selected timer shall first complete onehalf dozen operations and the actual time study shall then be made upon the next
dozen and the average time consumed upon this dozen shall be the time set.
To such time there shall be added an allowance of ten (10) percent for un­
avoidable delay and fatigue.
57. Allowance for Rest Periods, Fatigue, and Lunch Period
The allowances for the various operations will not be less than 15 percent
on the time value which will include the two fifteen (15) minute rest periods
and the allowance for fatigue. In the event that a fifteen (15) minute lunch
period is paid for by the company, an additional 3.2 percent allowance will be
included.
58. Unspecified Allowance for Duties Incidental to the Job; Specified Allowance
for Personal Contingencies
In timing all jobs the time allowed for performing an operation shall be the
time necessary for the regular operator, familiar with the operation, tools, equip­
ment, and material provided and the quality of the finished part up to the
standard required by the inspection department without causing excess scrap, or
undue damage, wear o f tools and equipment, with operator working at a pace he
can maintain day after day without injury to himself or his fellow employees;
with such time allowed to replenish the supplies, oil and clean the equipment and
all the details that are necessary and which are expected to occur in the ordinary
day’s work. These are classed as contingencies and a percentage shall be added
to the time allowed to take care of them. In addition 10 percent of the time



52

TIM E STUDIES AND PRODUCTION STANDARDS

allowed for actually performing the operation shall be added for personal
contingencies.
59. Major Mechanical Failures Considered as Additional Down-Time, Not In­
cluded in Standard; Allowance Made for Normal Delays
In all time standards compiled through elemental data or otherwise, allowances
are made for inherent, intermittent, and/or other operational delays. Therefore,
such allowances which are included in the standard shall not be duplicated at
time of occurrence. Additional “ down-time” allowances will be made for major
mechanical failures beyond the control o f employees, such as power failure, ma­
chine, or conveyor break-down.
60. Allowances Vary With Type of Jol) (Revision of delay factors, on file for
union use, based on 8-hour delay studies.)
Delay factors vary from 44 to 111 minutes on an 8-hour basis depending upon
the classification of work. These delay factors include personal delays, making
out time slips, and normal job and miscellaneous delays. Delays and allowances
incidental to unusual conditions on a particular operation shall be indicated on
the time study and will be in addition to the specific established delay factors.
The list of the specific delay factors for each operation is kept on file in the
time-study department, and is open for inspection to the grievance committee at
all reasonable times. It is recognized that changing conditions in the plant may
indicate occasional revision of individual delay factors and the company will
continue its policy o f so doing by means of 8-hour delay studies.
PROTECTION AGAINST SECRET OR CONCEALED TIME STUDIES

W orkers are opposed to secret tim e studies, which autom atically
elim inate the possibility o f safeguarding the conditions under which
work standards are set. Some agreements, therefore, call fo r union
observation o f all studies while others specifically prohibit secret tim e
studies or require that workers or the union are to be notified when a
job is to be tim ed.
Recognizing that lack o f inform ation and understanding contribute
to conflict over incentive rates and tim e studies, employers m ay find it
desirable to make tim e-study data available fo r union and employee
exam ination.
61. Time Studies Made with Knowledge of Employee Affected
All time studies for the purpose o f establishing or changing piecework prices
shall be made with the knowledge of the employee affected, and all such studies
shall take into consideration all details of the complete operation.
62. Union Informed of Proposed Time Studies
The union shall be informed of any proposed time studies.
63. Both Operator and Union Given Advance Notice of Time Study
I f time studies are taken the company shall notify the operator and the union
in advance of such intent, and disclose to the operators and the union the findings
o f such studies.
64. Company to Notify Chief Stewards of Time Studies in Their Areas
Chief stewards will be informed by the company of all time-study activity in
their areas.



SIZE OF CREWS

53

65. Departmental Committeeman Notified Prior to Timing and Time-Study Man
Must Carry Specified Equipment
Whenever a time-study man is timing or checking an operation, he will use the
time-study board with the stop watch attached so that the operator will know
that he is being observed and the departmental committeeman will be notified
before the timing is started.
66. Union Representatives May Observe Time Studies
The union shall have the right to appoint their own observers to be present
when time studies are being conducted.
67. Timing by Foremen Deemed a Violation of Agreement
Whenever a dispute arises over a rate, a restudy shall be taken immediately.
.
The shop chairman o f the union shall be notified and be present on all jobs
restudied. It shall be deemed a violation of this contract if for any reason
foremen or assistant foremen are found timing a job. However, a foreman or
assistant foreman and the committeeman of the department concerned may be
present during any time study.
68. Employees May Request Copy of Time-Study Sheet at Time o f Study
Any employee, at his request, will be furnished a carbon copy of the time-study
sheet at the time the same is made on the job.
69. Union Examination of Time Studies
Time studies shall be available at all times to the union representatives for
their examination. There shall be no erasure of any figure on a time study.
70. Inspection of Time-Study
Representatives

Cards

by

Employees

Involved,

or

Their

The company agrees to continue to make time-study cards available for in­
spection by the employees involved or their authorized union representatives
after the rate has been calculated.
71. Calculations Explained by Standards Department, on Request
The standards department supervisor shall, at the request o f the steward, re­
view with him the data and computations on which any standard is based.
72. Management to Explain Timing Calculations on Disputed Timings
A full explanation of any standard times will be made by the management to
the employee or the proper union representative in cases of disputed time studies,
so that there will be a mutual understanding of the facts and data that were
used in determining such standard times.

Size and Composition o f Crews
A n employee’s work load m ay be determined by the number o f
machines he m ust tend or operate as w ell as by the number o f units
he m ay have to produce.

Som e m achinery and conveyor belts operate

at fixed speeds and require a minimum number o f workmen to operate
them .

H ow ever, an insufficient number o f workers attending such

operations m ay result in a speed-up and endanger the workers’ safety
and w elfare.

Som e clauses, accordingly, stipulate the size and the

com position o f crews required fo r various operations covered by the
agreement, as w ell as the amount o f work required o f any given crew.



54

TIM E STUDIES AND PRODUCTION STANDARDS

These provisions frequently are detailed and apply only to a specific
industry or trade. Other agreements assure the union the righ t to
negotiate concerning the size o f the crew.

W h en an em ployee is re­

quired to operate more than the norm al complement o f m achines, ad­
d ition al compensation is specified or additional personnel m ust be
hired to reduce the abnormal work load.

W h en less than a fu ll crew

is required to operate a given machine, the pay o f the absent men
m ay be divided am ong those doing the work.
73. Specified Number of Workers per Machine
It is agreed that the crew of each Standard stemming machine shall consist
o f eight girls, including three operators, the placing of operators to he optional
with the crew. The crew of each Pasley stemming machine shall consist of seven
.girls, of whom two shall be used as operators.
74. Crew Complement Geared to Work Load
A regular furnace crew shall not be required to change more than 18 retorts
without extra help.
Nine men (not including fireman) shall constitute a furnace crew on a 208retort furnace. Ten and one-half men (not including fireman) shall constitute
a furnace crew on a 304-retort furnace. Ten and three-fourths men (not in­
cluding fireman) shall constitute a furnace crew on a 328-retort furnace. Three
men (firemen included) shall constitute a furnace crew on an 80-retort furnace.
75. Company to Maintain Full Crew on Operations Normally Requiring a Definite
Number of Workers
On any work of a character normally requiring a definite number o f men,
whether two or more, the company will assign a man to fill the position of any
employee absent through any cause, if the work is to be carried on continuously
without interruption or reduction in volume, or is not occasioned by a rearrange­
ment of work or a change in equipment.
76. No Variation in Number of Employees Assigned to Incentwe Group
On group incentive jobs, time studies shall be taken with extreme care, and
the group must operate regularly with the number of employees assigned at the
time the time study was taken.
77. Union Right to Negotiate on Size of Crew
The committee titled the job classification and standards committee shall
continue in this plant and is comprised of five (5) individuals, two (2) repre­
senting the union, two (2) representing the company, with an impartial chair­
man from the firm of------consulting engineers. This committee has the follow­
ing duties: * * * (including) analyzing complaints concerning one operator
operating more than one machine.
78. Discussion With Union on Size of Incentive Group
In setting up any new incentive groups, the company will discuss with the
union the size of the group necessary for efficient operations.
79. Union Consulted Prior to Changes in Size o f Crew (Grievances concerning
such changes not subject to arbitration.)
The company will determine the number of men necessary for the safe and
effiicient operation of units or departments within the refineries. Changes therein
may be made by the company in the event of reduction or increase in work load
or operations. The company will call in and notify the grievance committee



M ANAGEM ENT SAFEGUARDS

55

prior to any such staffing o f new plants or change in present plants and will give
full consideration to the recommendation o f the union in making its determina­
tion. Grievances concerning this determination shall not be submitted to arbi­
tration as outlined in article VII.
80. Maintenance of Customary Proportion o f Skilled Workers
The employer shall at all times employ at least one helper for each color mixer
and one helper for each printer, with the exception, however, that printers on
machines printing staple mica ceilings need not be furnished with a helper,
except for the purpose of changing rollers, colors, or grounds, in which case a
helper shall be furnished.
The established quota craftsmen and helpers shall be employed on a machine
while said machine is in operation, except that when a pattern changing crew is
employed for the sole purpose o f changing patterns, no other employees except
the men actually employed in changing patterns need be employed in connection
therewith * * *.
81. Extra Pay and Additional Workers Required if Additional Machines Are
Operated
If there is an additional1 printing machine or one or two additional grounding
machines or blotchers, the color mixer or mixers shall mix for such extra ma­
chines and shall receive extra compensation therefor on the basis of twenty (20)
cents per hour for mixing for such printing machine and ten (10) cents per hour
for mixing for each such grounding machine or blotchers, with the further pro­
viso that in the event there is more than one additional printing machine, or
more than two additional grounding machines or blotchers, an additional color
mixer shall be employed therefor: Provided, however, That in those cases when
a color mixer mixing for an extra printing machine or one or two grounding
machines has heretofore been paid more than the compensation herein fixed, said
higher rate of pay for this work shall be continued in spite o f the provisions o f
this paragraph.
82. Pay of Absent Crew Member Divided Among Those Doing the Work
When an emergency arises that paper machines or beaters must be operated
without a full crew, the equivalent of the pay of the absent man shall be
divided amongst the men who performed his work.
83. No Replacement fo r Grievance Representative, Provided Crew Can Maintain
Incentive Earnings
When bargaining committeemen, who work on group jobs, are engaged in
meetings with management, and the remaining operators in the group can main­
tain their incentive earnings without a replacement operator in the group, the
group rate shall apply and the group shall work without a replacement operator.

Management Safeguards
Protection to management in connection w ith tim ing is sometimes
provided through agreement clauses pledging honest effort by workers
w hile a tim e study is being made.

Occasionally clauses prohibit any

interference by the union during a time study.
Some agreements stipulate union assurance to management that
reasonable production standards w ill be m aintained.
1 Additional to normal complement of machines.




T h is m ay take

56

TIM E STUDIES AND PRODUCTION STANDARDS

th e form o f a general prohibition against lim itation o f production
or in statements that union members w ill perform a fu ll day’s work.
In some agreements these assurances are supplemented by provision
fo r discipline or discharge o f employees who w illfu lly restrict produc­
tion or consistently fa il to meet production standards.
84. Employee Not To Control Production During Timing
During any timing of a ;job the operator shall produce at normal standard
-as requested by the foreman and shall not control or limit production.
85. Maintenance of Normal Pace During Timing
There shall be no slow down, false motions or any other unfair attempts on
the part of the union or the employees to impair a fair and true result o f such
time studies.
86. Union Responsibility for Fair Timing
The union agrees to see that its members give a reasonable and just time study.
;87. Union Assistance on Fair Timing
The union agrees to assist in seeing that—
(a ) Employees being time-studied shall give an honest effort while the study
is being made.
( b) No deliberate attempt be made to slow down, stretch out, or other means
used to obtain a loose standard during the course of the study.
(c) Any employee resorting to various methods of falsifying the time cycle
shall be subject to a reprimand or a lay-off penalty.
£8. Employees to Produce at Normal Pace Despite Termination of Incentive Plan
(Production standards under discontinued plan not to be used to rate
employees.)
It is stipulated and agreed between the company and the union that any bonus,
incentive or production plan heretofore in effect in the plant is hereby abolished.
The union agrees that, in consideration o f the rates of pay and other adjustments
made under this memorandum agreement, that the employees within the bargain­
ing units will work and j>roduce at a normal pace. Normal pace means, to
produce a reasonable day’s work or give the company a fair day’s work for a
fair day’s pay. This does not mean that the employees within the bargaining
units will be rated according to any previously established production standards.
89. Dismissal or Transfer for Failure To Cooperate in Establishing or Mainr
taining Fair Standard
No employee will be compelled to produce more than the union has stated
was fair but continued failure of an employee to cooperate in establishing a
fair standard or to meet the agreed rate of production of an established stand­
ard or the rate of production as stated by the union as fair, without a reason
mutually satisfactory to both union and company, will result in dismissal, or if the
circumstances warrant unusual treatment, transfer to another department.
90. Managements Right To Discipline Employee Not Cooperating on Time-Study
The time-study man may refuse to continue a study if in his judgment the
^employee being studied is deliberately refusing to cooperate by working at other
than normal pace or not in accordance with prescribed method; and he shall
so notify the employee’s foreman who may consider it as due cause for dis­
cipline.




M ANAGEM ENT SAFEGUARDS

57

91. No Interference by Union Steward in Time Study
It is understood and agreed that when a time study is being conducted, no
steward shall observe or interfere with the study in any manner.
'92. Union Members Subscribe To Pledge of (tFair Day's Work”
The union, its officers, members, and all the employees o f the company cov­
ered hereby each agree that the company is entitled to and the employees will
each put out a fair day’s work for the pay prescribed herein.
93. Output and Quality Restrictions Prohibited
Mine cars shall be distributed among miners, who are at work, as uniformly
and as equitably as possible, and there shall be no concerted effort on the part
of the miners or mine workers o f any colliery or collieries, to limit the output
of the mines or to detract from the quality of the work performed, unless such
limitation o f output be in conformity to an agreement between an operator or
operators and an organization representing a majority o f said miners in his or
their employ.
94. Union Not To Impose Production Restrictions
No limitation shall be placed by the union upon the amount o f work which
any employee shall perform during any workday or workweek, nor shall there
be any restriction as to the use of machinery, tools or labor-saving devices.
95. Union Not To Impose or Permit Production Restrictions
The union will impose no restrictions or limitations on production o f an in­
dividual employee or group of employees, nor will it permit same to be imposed.
96. Union To Discourage Stalling on the Job; Company To Discourage Pace
Setting and Speed-Ups
The company will not encourage and will actively discourage any “ race” between
exceptional employees to a stage known as “pace setting” or “ speed-up” whether
among individual employees, groups of employees, or separate shifts, and the union
will not encourage any inefficiency and “ stalling” on the job by the employees of
the company.
97. Employees Subject To Discharge for Production Slow-Downs
Any employee who slows down his production without excuse shall be subject
to discharge.
98. Discipline or Discharge for Restriction of Production or Failure to Meet
Standards
The right of the company to establish and determine and to maintain and enforce
standards of production is fully recognized. Continued failure o f an employee to
produce on the basis o f established standards will be considered due cause for
discipline, including discharge, unless the failure is due to causes beyond his
control. The company shall not be required to retain in its employment any
employee who refuses to meet established standards or who engages in any at­
tempt or participates in any plan to control or limit the amount or speed of
production. An employee physically incapable of meeting established standards
shall be given the opportunity of transfer to an operation he is physically capable
of performing, subject to provisions of section 1-b, article VIII.
99. Discipline for Failure To Meet Standards for SO Days
The union agrees that the production standards as determined by experience
in the 90-day period prior to (date), will be maintained and if not consistently
maintained (that is, for at least 30 days), the employee or employees who fail to



58

TIM E STUDIES AND PRODUCTION STANDARDS

meet such a standard are subject to disciplinary action up to and including dis­
charge, except where failure to meet the standard is for reason beyond the control
of the employee.
100. Discharge for Consistent Failure To Produce at Least 80 Percent of Average
The entire system is based upod an appreciation of the fact that all factories will
have operators varying from 80 percent to 120 percent of the average. Consistent
performances below 80 percent of the average justifies changing the operator to­
other work, or if no work is found upon which he can do an 80 percent job, after
due effort to educate him to perform at this level has failed, he may be subject
to discharge. Normal grievance procedure will protect his interests under these
circumstances.
101. Graduated Penalties for Failure to Maintain Standard of Production
The union agrees that the company is entitled to and shall receive from each
employee the amount of work established by the standard rates o f production for
the company: Provided, however, That if an employee believes a rate of produc­
tion is set too high, he can request a re-timing and also the company can re-time
and mutually adjust those rates of production which are set too low. The union
agrees to increase its efforts so that the company will receive from each employee
the standard of production and to show it proposes to carry this out, the union
agrees that where an employee fails to maintain his standard rate of production,
he will be subject to the following penalty: (1) Warned, (2) 3 days lay-off, (3 )
discharged.
102. Substandard Production Cause for Transfer or Demotion Regardless o f
Seniority
When an employee continues to operate at a level below standard efficiency, he
may be transferred or demoted to some other job without regard to his seniority.
103. Employee Cut Below Top Rate of Classification if He Fails To Meet Stand­
ard A fter Warning
The top rate of each classification shall be based on 100 percent efficiency o f the
standard set. Any employee who wilfully or through no fault of the company
falls below the accepted standard of production shall be given a warning by the
foreman. The chief steward shall be notified of such notice in writing. If,
after 1 week’s time, the employee continues to fall below the standard of pro­
duction, his hourly rate shall then be based on his efficiency, according to appendix
A of this agreement, but in no case below the minimum rate established for that
classification.
104. Union and Members Pledge To Maintain Production Standards in Exchange
for Union shop
Subject to the conditions th at: The union and its members, individually and
collectively: * * * shall maintain production standards, pursuant to the
provisions of paragraph 3.04,1 * * *.
1 Time-study standard rates, which term includes production standards (i. e., time-study
rates expressed in pieces per hour), shall be established by the company by such means as
time studies, motion studies, or other established means of determining operator per­
formance. Failure to meet production standards shall subject an employee to discharge.
Time-study standard rates shall not be changed except to correct obvious errors, or unless
there is a change in method, process, parts, or equipment used in performing the opera­
tion. In the event that a change in method, process, parts, or equipment used in perform­
ing the operation takes place, then only such part of the operation as is directly affected
by the change shall be restudied for adjustment in the over-all rate.




M ANAGEM ENT SAFEGUARDS

59

It is agreed:
(а) That, as a condition of employment, all employees covered by the bargain­
ing unit shall, within thirty (30) days after date of their employment, become and
thereafter remain members of the union in good standing.
(б ) That the company shall, without interference from the union, select and
[hire its employees.
(c) That the union shall not refuse to admit to membership, but only in
accordance with constitutional requirements, any individual employed within the
bargaining unit who may be hired by the company.
(d) That on (date) all employees included in the bargaining unit who are
not members of the union and who have more than thirty (30) days continuous
service shall become and remain members of the union as a requisite to continued
employment.







Index
INCENTIVE WAGE PROVISIONS

Page

Regulation of method of wage payment:

Clause
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
(31)
(32)
(33)
(34)

Incentive system prohibited___________________________________
Incentive system abolished-----------------------------------------------------Union consent required_______________________________________
No extension of piecework except by mutual agreement________
Inauguration of incentive system by mutual agreement________
Modification or establishment of incentive plan requires joint
approval__________________________
Employer may discontinue incentive system at any time_______
Either party may discontinue incentive system on 30-days’ notice.
Continuation of incentive plan in force________________________
Piecework at management’s discretion_________________________
Employer to establish incentive system wherever practicable___
Incentive plan extended to measurable jobs-----------------------------Incentive plan extended, provided unit labor costs not increased. .
Joint committee may request survey to extend incentive plan to
indirect workers____________________________________________
Company survey of incentive plan for indirect workers; applica­
tion subject to joint approval_______________________________
Incentive plan covers production and nonproduction workers_
_
Sliding group bonus plan with stated maximum for indirect
workers____________________________________________________
Temporary bonus plan for nonincentive workers pending estab­
lishment of standards_______________________________________
Savings in indirect labor costs distributed among indirect work­
ers_________________________________________________________
All employees given opportunity to earn bonus; group bonus plan
preferred___________________________________________________
Supervisory, clerical, and office employees excluded____________
Change to piecework payment through joint negotiation_______
Time operations may be converted to piece operations with ap­
proval of union; arbitration provided________________________
Change in method of payment subject to arbitration___________
No change in method of payment except by consent of company,
union, and employee________________________________________
Employer may change method of payment provided hourly
earnings not reduced________________________________________
Change to or from individual or group bonus by mutual consent.
Individual incentive system used wherever possible; final decision
with employer______________________________________________
Type of incentive plan— individual or group— at employer’s
discretion__________________________________________________
Current information on operation of incentive system posted___
Weekly written computation of earnings to incentive employees.
Employees informed of method of computing incentive earnings.
Piece rates posted; translated into dollars and cents___________
Employer to furnish union information on operation of incentive
system_____________________________________________________




61

5
5
5
5
5
5
5
6
6
6
6
6
6
6
6
6
6
7
7
7
7
7
7
7
8
8
8
8
8
8
8
8
9
9

62

INDEX
Page

Union participation in establishing or changing incentive rates:
(35) Union price committee to negotiate with employer_____________
(36) Union price committee; negotiating procedure outlined under
association agreement_______________________________________
(37) Piece rates adjusted by employer and union price committee___
(38) Union approval required before piece rates put into effect______
(39) Mutual agreement on piece rates and bonuses_________________
(40) Joint negotiation when improved machinery introduced________
(41) Joint committee to recommend rates on new machinery________
(42) Union approval required before rates are put into effect________
(43) Separate procedure for routine, technological, and other rate
changes_____________________________________________________
(44) Consultation with union prior to rate change, no limitation on
employer___________________________________________________
(45) Discussion with employees and union prior to rate change______
(46) New or changed bonus values first discussed with union; differ­
ences settled through grievance procedure___________________
(47) Detailed procedure for rate establishment and adjustment_____
(48) Alternative procedure when parties unable to agree on new rate for
changed jo b ________________________________________________
(49) Notice to union steward of rate changes; 48 hours allowed for
checking rates before posting________________________________
(50) Notice of revised rate given to worker before starting work____
(51) One week’s notice to employee and union of decrease in standard
rates_______________________________________________________
(52) Rates set by management subject to challenge through griev­
ance procedure_____________________________________________
(53) Union or employer may initiate grievance on established piece
rates_______________________________________________________
(54) Employees or employer may enter grievance on present or future
incentive rates______________________________________________
(55) Union may reopen present piece rates when “ necessary” _______
(56) Quarterly revision of group incentive quotas on request by
either party------------------------------------------------------------------------(57) Time limit on appeal of contested rates: 5 days________________
(58) Time limit on appeal of contested rates: 30 days_______________
(59) Special committee to adjust grievance pertaining to piece rates.
(60) Rate setting procedure excluded from scope ofarbitration_______
(61) Aid of technical expert invoked for conciliation and arbitration.
(62) New rate retroactive to date of change or 30 days, whichever is
shorter_____________________________________________________
^Safeguards on earnings:
Protection against rate cutting:
(63) Piece rate cuts prohibited------------(64) No changes in piece rates_________________________________
(65) Employer not permitted to revise incentive standards_____
(66) Employer may revise piece rates in event of job changes_
_
(67) No reduction in rate unless job duties substantially change.
(68) Rate adjustment commensuratewith job change___________
(69) Rate revision limited to job elements affected by change
in method________________
(70) Revision applies only to operation affected-----------------------(71) Proper rates will not be changed regardless of earnings------


10
10
11
11
11
11
11
11
12
13
13
13
13
14
15
15
15
15
15
15
15
16
16
16
16
17
17
17

18
19
19
19
19
19
19
19
20

INDEX

Safeguards on earnings— Continued
Protection against rate cutting— Continued
(72) Earnings not to be cut by rate revision____________________
(73) High earnings on one job no basis for requesting change in
standards for other jobs_____________________________________
(74) Piecework prices continue for life of agreement except when
design or operation changes_______________________________
(75) Union may challenge permanent rates at all times; em­
ployer limited to 60 days; disputes arbitrable___________
(76) Conditions for rate revision itemized______________________
(77) Rates adjusted when earnings exceed specified level_______
(78) Indirect effect of job change taken into account in rate
revision________________________________________________
(79) Minor changes cumulated until revision justified__________
(80) Rate adjustment in event of added work or introduction of
time-saving method____________________________________
(81) Employee’s improvement in technique no justification for
rate revision___________________________________________
(82) No change in rate for 3 months following improvement sug­
gested by employee; immediate revision when company
makes improvement____________________________________
(83) Mutual consent required for rate revision based on increased
skill of employee_______________________________________
Guaranteed minimum earnings:
(84) Hourly rate guaranteed for incentive workers_____________
(85) Male-female differential in hourly guarantee_______________
(86) Guaranteed weekly earnings equal to minimum weekly rate(87) Minimum weekly rate equal to 90 percent of base rate, except
for learners and handicapped___________________________
(88) Basic rate not considered a guaranteed minimum__________
(89) Piece rate earnings must equal previous earnings at hourly
rates___________________________________________________
(90) Guarantee differs for incentive and piecework operators____
(91) Make-up pay: rate revised if group earnings fall below
minimum for 4 weeks___________________________________
(92) No ceiling on incentive earnings__________________________
(93) Rate set at level enabling employee to earn 25 percent above
his base rate___________________________________________
(94) Standards set to permit specified earnings above base rate—
(95) Adjustments to permit earnings 20 percent above base rate—
(96) Guaranteed bonus over day rate on weekly basis—. _______
(97) Expected earnings over base rate not guaranteed__________
Restrictions on temporary incentive rates:
(98) Practice of setting temporary rates to be minimized______
(99) Temporary rates permitted by mutual agreement________
(100) Rate considered permanent if not challenged within 150
days__________________________________________________
(101) Ninety-day trial period for new rate_____________________
(102) One-week trial period; adjustment retroactive to date of
posting_______________________________________________
(103) Two-month trial period; adjustment retroactive to date of
complaint_____________________________________________
(104) Temporary rate not to remain in effect for more than 6
months______________



63

Page
20
20
20
20
20
20
21
21
21
21

21
22
22
23
23
23
23
23
23
24
24
24
24
24
25
25
25
25
25
25
25
26
26

64

INDEX

Safeguards on earnings— Continued
Restrictions on temporary incentive rates— Continued
Page
26
(105) Previous average earnings guaranteed during trial period_
(106) Guarantee of average earnings based on previous 4 weeks’
earnings______________________________________________
26
(107) Employees paid actual earnings or 20 percent over their
26
guaranteed rate, whichever is greater__________________
(108) One hundred fifteen percent of base rate paid until standard
set____________________________________________________
26
(109) Production during trial period paid at rate finally set_____
26
(110) Temporary rate includes day rate plus pay for units
produced______________________________________________
27
(111) Base rate guaranteed during trialperiod__________________
27
(112) Percentage of average hourly earnings guaranteed until
piece rate established__________________________________
27
(113) Eventual permanent rate lower than temporary rate not to
be construed as a wage cut____________________________
27
Guaranteed earnings under special conditions:
Down-time:
28
(114) Percent of average hourly earningspaid for lost time_____
(115) Percent of base rate for lost time________________________
28
(116) Guaranteed hourly rate paid for unrated work and various
types of lost time_____________________________________
28
(117) Guarantee varies with cause of delay_____________________
28
(118) Rate for intermittent and complete down-time differen­
tiated_________________________________________________
29
(119) Pay at rate of previous week’s average earnings for time
lost above normal delays______________________________
29
(120) Piece rates to include allowance for delays of less than 15
minutes_______________________________________________
29
(121) Percent above day rate if specified down-time exceeds 15
minutes_______________________________________________
29
(122) Base rate paid for specified waiting time in excess of 18
minutes_______________________________________________
29
(123) Day rate for time lost over 15 minutes due to occupational
injury_________________________________________________
30
(124) Base rate up to 1 hour waiting time; average hourly earn­
ings thereafter_________________________________________
30
(125) Delays under 6 minutes not compensated________________
30
(126) Alternative procedures for down-time compensation______
30
(127) Pay for delays over 15 minutes unless employee given other
job or sent home______________________________________
30
(128) Foreman to make allowances in incentive pay for delays..
30
(129) Allowance for factors beyond the employee’s control, ex­
cept in cases of labor stoppage__________________ : _____
_
30
Faulty materials:
(130) Guarantee of average hourly earnings; dispute over condi­
tions of stock subject to grievance procedure_________
31
(131) Average earnings paid or time allowance made for bad stock.
31
(132) Temporary rate jointly set for work on abnormal stock___
31
Break-in time under group incentives:
(133) Group earnings adjusted when new workers are added to
group_________________________________________________
32
(134) No overstaffing of incentive group_______________________
32



INDEX

Guaranteed earnings under special conditions— Continued
Break-in time under group incentives— Continued
(135) Average hourly earnings of regular employees paid out of
group earnings before new employee is entitled to share_
(136) Day rate to new employee deducted from group earnings
but average earnings for experienced group to be main­
tained________________________________________________
(137) New worker paid guaranteed rate until crew earnings equal
average hourly earnings for experienced men plus learn­
er’s guaranteed rate----------------------------------------------------(138) Graduated scale of participation for employees breaking
into incentive groups..............._............................................
(139) New worker shares earnings when held qualified by foreman
or requested by incentive group____ _______
Special work:
(140) Employee transferred to special work paid 25 percent over
base rate--------------------------------------------------------------------(141) Base rate plus 30 percent for special work________________
(142) Special work at rate of 15 percent above day rate________
(143) Specified percent above base rate for experimental work__
(144) Special work paid at base rate of piecework job temporarily
interrupted___________________________________________
(145) Regular earnings allowed on transfers at company request(146) Guarantee of 90 percent of average straight time hourly
earnings______________________________________________
(147) Average hourly earnings paid when pieceworker detailed to
instruction or experimental work______________________
(148) Guarantee of average hourly earnings computed over pre­
vious calendar quarter_________________________________
(149) Pieceworkers paid at average hourly earnings when trans­
ferred temporarily to a time basis______________________
(150) Guaranteed previous earnings on new job so long as original
job operates---------------------------------------------------------------(151) Guarantee varies with nature of special jobs______________
Period for computing incentive earnings:
(152) Pay calculated on job basis---------------------------------------------------(153) Earnings computed on daily basis------------------------ -----------------(154) Modified daily computation of incentiveearnings--------------------(155) Incentive earnings calculated on weekly basis------------------------Equal opportunity under the incentive plan:
(156) Equal opportunity to earn bonus-------------------------------------------(157) Day work shared equally--------------------

65

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32

32
32
33

33
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33
33
34
34
34
34
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34
34
35
35
35
35
35
36
36

TIM E STUDIES AND STANDARDS OF PRODUCTION
Union participation in time studies and in setting production standards:
(1) Introduction of time-study system by mutual agreement_______
(2) Union-management cooperation in timing jobs-------------------------(3) Union and management time-study representatives to assist each
other_______________________________________ _______________
(4) Collective bargaining on all matters pertaining to time studies-(5) Company to re-time job within 24 hours after request from em­
p loyee.......................... - _____ ________________________________




38
39
39
39
39

66

INDEX

Union participation in time studies and in setting production standards—
Continued
(6) Re-timing at request of employee or union limited by existing
time-study staff-----------------------------------------------------------------(7) Union or management may request additional time studies during
trial period---------------------------------------------------------------39
(8) Union review of time studies___________________________
39
(9) Disputed standard re-timed by employer and then jointly if re­
40
timing is questioned------------------------------------------------(10) Joint re-timing of disputed standards___________________
40
(11) Re-timing by company and representative of international union.
(12) Multi-step rate review procedure_______________________
40
(13) Joint review of time-study data; joint re-timing of disputed
timing_______________________________________________
40
(14) Joint observation of re-timing of disputed standards_____
41
(15) Disputed standards re-timed and reviewed by joint committee.
(16) Union allowed 48 hours to check time study; objections handled
by grievance procedure______________________________
41
(17) Union technician to study disputed standards___________
42
(18) Company studies on disputed operation made available to union
technicians who may make independent studies_______
42
(19) Union observer of re-timing of disputed standards_______
42
(20) Union observer at re-timing paid at day rate__________________
(21) Union observer at re-timing not paid by employer_____________
(22) Company may attend but is not bound by union re-timing of
disputed operation___________________________________
42
(23) Union given 1 day’s advance notice of change in work standards. .
(24) Advance notice of change in work load; period not specified____
(25) Advance notice of change in work load: 7 days_________________
(26) Collective bargaining on work loads on 30 days’ notice_________
(27) Union and employer meet to set up production standards______
(28) Standards of production negotiated by union, employee, and
employer; standards effective on posting____________________
(29) Disputes regarding work loads subject to regular grievance
procedure___________________________________________________
(30) Appeal of work load through grievance-arbitration procedure after
trial period_________________________________________________
(31) Accelerated grievance procedure_______________________________
(32) Designation of technical man as arbitrator to settle differences
over production standards__________________________________
(33) Arbitration by board of technicians; retroactive rates determined
by arbitrators______________________________________________
(34) Arbitrator’s jurisdiction in disputes over production standards
itemized____________________________________________________
(35) Arbitrator limited to disputes over changes in present workloads(36) Final appeal to union time-study committee and management..
(37) Arbitration excluded; date of retroactive adjustment specified-_
(38) Union time-study stewards trained by company and paid by
union_______________________________________________________
(39) Two union representatives assigned to work full time in com­
pany’s time-study department______________________________
(40) Union time-study representatives paid by company during train­
ing period__________________________________________________




Page

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40

41

42’
42

43
43
43
43
43
43
44
44
44
44
45
45
46
46
46
46
46
47

INDEX

67

Union participation in time studies and in setting production standards— Pag®
Continued
(41) Company-trained union time-study men may make independent
check of disputed standards; must furnish company list of
activities and copies of time studies made_________________
(42) Procedure for selecting union representatives for time-study
training---------- -----------------------------------------------------------------------47
(43) Minimum qualifications specified for union time-study stewards.
48
Union safeguards on timing:
Selection of workers to be timed:
(44) Foreman and shop committee select workers to be timed—.
49
(45) Employer and union time-study men select workers to be
timed__________________________________________________
49
(46) Employer selects worker to be timed; union may challenge
49
employer’s first choice only_____________________________
(47) Standard based on average time of workers selected and
timed by employer and union respectively______________
49
(48) Times of fast, medium, and slow workersaveraged_________
49
(49) Definition of normal worker for timing____________________
50
(50) Adjustment made if operator timed is above or below aver­
50
age ability-------------------------------------------------------------------Maintenance of normal operating conditions during time study:
(51) Policy of “ fairness” to be followed________________________
50
(52) All time studies to be conducted under normal conditions for
at least one-half hour___________________________________
50
(53) Advance discussion with union committee regarding speed
of operations___________________________________________
50
Time-study allowances:
(54) “ Reasonable” allowances for fatigue, personal needs, and
other factors___________'________________________________
51
(55) Allowances itemized______________________________________
51
(56) Specified allowance for unavoidable delay and fatigue_____
51
(57) Allowance for rest periods, fatigue, and lunch period______
51
(58) Unspecified allowance for duties incidental to the job ; speci­
fied allowance for personal contingencies________________
51
(59) Major mechanical failures considered as additional down­
time, not included in standard; allowance made for normal
delays_________________________________________________
52
(60) Allowances vary with type of jo b ___________________
52
Protection against secret or concealed time studies:
(61) Time studies made with knowledge of employee affected_
_
52
(62) Union informed of proposed time studies__________________
52
(63) Both operator and union given advance notice of time study.
52
(64) Company to notify chief stewards of time studies in their
areas___________________________________________________
52
(65) Departmental committeeman notified prior to timing and
time-study man must carry specified equipment________
53
(66) Union representatives may observe time studies___________
53
(67) Timing of foremen deemed a violation of agreement_______
53
(68) Employees may request copy of time study sheet at time of
study__________________________________________________
53
.(69) Union examination of time studies________________________
53
((70) Inspection of time study cards by employees involved, or
their representatives____________________________________
53



47

68

INDEX

Union safeguards on timing— Continued
Protection against secret or concealed time studies— Continued
Page
(71) Calculations explained by standards department, on request53
(72) Management to explain timing calculations on disputed tim­
5S
ings........... .................................................. ................................
Size and composition of crews:
(73) Specified number of workers per machine______________________
54
(74) Crew complement geared to work load________________________
54
(75) Company to maintain full crew on operations normally requiring
a definite number of workers________________________________
54
(76) No variation in number of employees assigned to incentive group.
54
(77) Union right to negotiate on size of crew_____________
54
(78) Discussion with union on size of incentive group_______________
54
(79) Union consulted prior to changes in size of crew_______________
54
(80) Maintenance of customary proportion of skilled workers_______
55
(81) Extra pay and additional workers required if additional machines
are operated________________________________________________
55
(82) Pay of absent crew member divided among those doing the work.
55
(83) No replacement for grievance representative provided crew can
maintain incentive earnings_________________________________
55
Management safeguards:
56
(84) Employee not to control production during timing_____________
(85) Maintenance of normal pace during timing____________________
56
(86) Union responsibility for fair timing____________________________
56
(87) Union assistance on fair timing________________________________
56
(88) Employees to produce at normal pace despite termination of in­
centive plan________________________________________________
56
(89) Dismissal or transfer for failure to cooperate in establishing or
maintaining fair standard___________________________________
56
(90) Managements right to discipline employee not cooperating on time
study______________________________________________________
56
(91) No interference by union steward in time study________________
57
(92) Union members subscribe to pledge of “ fair day’swork” ________
57
(93) Output and quality restrictions prohibited____ .________________
57
(94) Union not to impose production restrictions___________________
57
(95) Union not to impose or permit production restrictions_________
5T
(96) Union to discourage stalling on the job; company to discourage
pace setting and speed-ups__________________________________
57
(97) Employees subject to discharge for production slow-downs_____
57
(98) Discipline or discharge for restriction of production or failure to
meet standards------- -----------------------------------------------------------57
(99) Discipline for failure to meet standards for 30 days____________
57
(100) Discharge for consistent failure to produce at least 80 percent of
average_____________________________________________________
58
(101) Graduated penalties for failure to maintain standard of produc­
tion________________________________________________________
58
(102) Substandard production cause for transfer or demotion regardless
of seniority-------------------------------------------------------------------------58
(103) Employee cut below top rate of classification if he fails to meet
standard after warning_____________________________________
58
(104) Union and members pledge to maintain production standards in
exchange for union shop____________________________________
58




U. S. GOVERNMENT PRINTING OFFICE: 1 9 4 8