27 



the scale of allowances to be added to the ideal time-studied time 

 to provide for fatigue ; the proportion which the payment for standard 

 production should bear to the time rate ; the method of graduating 

 the payments above and below the standard ; the method on which 

 changes of process should be taken into account ; and, lastly, the 

 scale of allowances for unforeseen contingencies. Once these prin- 

 ciples have been settled, the times so set, and the payment for reaching 

 standard production, for individual jobs would fall into line with a 

 very fair regularity, and could really be considered as having been 

 settled in conjunction with the union. Particular times could always 

 be challenged by a union official, and the method of working out 

 could be investigated to see that the principles agreed to were being 

 put into practice. This is not possible with the present haphazard 

 methods for setting piece rates. It is only by a detailed study of the 

 work to be done that such bargains can be satisfactory, and it follows 

 that the conditions of the bargain must be set out fully and minutely 

 if disputes as to the good faith of the parties are to be avoided. In 

 other words, the detailed instructions for carrying out work, which are 

 such a feature of Scientific Management, enable general bargaining 

 between trade union and employer to be applied with fairness to 

 particular cases. 



It seems to me that the trade unions, so far from objecting to detail 

 study and instructions, should insist that rates should be set on no 

 other principle ; and they should make themselves at least as competent 

 as the management to deal with work from this point of view. 



A word of warning is perhaps necessary in this connection. It is use- 

 less to object to such methods on the ground that the systems which 

 result are complicated. The conditions which affect the productivity 

 of any particular process are necessarily complicated, and if the effects of 

 changes in these conditions are to be taken into account a very elaborate 

 scheme must be evolved e.g., allowances for fatigue, allowances for 

 changed conditions, tools, material, etc. I think the unions would 

 also have to be prepared for rates which proved unexpectedly easy to 

 be revised, both on the ground of competition from other employers 

 and of jealousy among the workers caused by abnormal earnings on 

 the part of individuals. If the trade unions are to undertake manage- 

 ment they must master the technique and be better managers than the 

 present employers. The problems to be faced by them will be just 

 the same as face the management under present conditions, and trade 

 unions will do well to study Scientific Management in order to be ready. 



I now propose to deal with the question of remuneration for effort. 

 Mr. Cole accepts time work and, under certain conditions, straight 

 piece work, as fair and satisfactory, but alleges that all other systems 

 are frauds. His argument is based on the fact that under the various 

 bonus systems quoted the price per piece falls. The argument is 

 ingenious, but, I think, misleading. I am not personally wedded to 

 any particular system of efficiency payment, and if a very strong point 

 were made by the unions that nothing but piece work should be allowed, 



