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country. This system has several forms, but all are only refinements 

 of the two simplest, to which I confine myself in this paper. Under 

 the premium bonus system, the first step is to fix a standard time allow- 

 ance for the job. The worker is guaranteed his hourly rate for the time 

 spent on the job, and over and above the hourly rate is paid a premium 

 calculated according to the time saved. 



Of the premium bonus system there are two main varieties, known 

 by the names of their inventors as the Halsey and the Rowan system. 

 Under the Halsey system, the worker is paid his time rate plus a 

 percentage (usually 30 per cent, or 50 per cent.) of the time saved. 



This again can be clearly explained by a table, the hourly rate being 

 once more supposed to be 10d., the standard allowance for the job 

 10 hours, and the bonus 50 per cent, of the time saved. 



The Rowan system, for which British manufacturers have shown a 

 marked preference, is far more ingenious. The worker is again guaran- 

 teed his time rate, and in addition is paid a bonus on the hours saved 

 on the following principle : 



time saved 



Bonus = - xtime taken, 



time allowed 



Thus, if ten hours is allowed for a job, and the worker does it in 

 eight hours, he is paid his time-rate for eight hours + tfe of 8 times 

 his time rate. 



A table comparing the Halsey and the Rowan systems will serve 

 to show clearly wherein they differ : 



*This calculation of what the earnings of piece-work would have been assumes that the 

 basis time under the premium system is a real and not a fictitious time. In fact, the basis time 

 is usually lengthened to allow of a premium being earned, That is to say, it is a fictitious 

 standard, and the comparison is made in order.to show that it is such. 



