LABOR 93 



inite amount of work outlined for the day and is responsible for 

 tlie completion of such work. 



The Piecework System. — This system provides for a defi- 

 nite compensation per unit of labor. The manufacturer has the 

 advantage that he has a fixed rate of cost for labor and that 

 the same amount of work will be accomplished in less time 

 and therefore save in factory cost. The piecework system will 

 invariably decrease the cost of labor per unit. The only disad- 

 vantage to the manufacturer is that the employees are more 

 tempted to sacrifice quality for speed. 



To the employee this system appeals more strongly than 

 the day- wage system. The industrious and skilled laborer re- 

 ceives his advance over the less ambitious and inexperienced. 

 Under this system the employees feel greater freedom and inde- 

 pendence, which tend to create satisfaction. 



In deciding on a piece rate great caution is necessary, for 

 if the rate is too high and it is found necessary to reduce it 

 later dissatisfaction will always result among the employees. 

 A rate should not be fixed before the matter has been thoroughly 

 studied through a series of experiments. 



The Premium and Percentage System. — This system pro- 

 vides for the payment of the entire salary or a part thereof on 

 some premium or percentage basis. It is customary in some 

 creameries to pay the butter maker a comparatively small 

 monthly wage and a certain per cent of the profit which will be 

 turned over to him annually or semiannually. When such agree- 

 ments are made with the butter maker the basis of paying for 

 butter fat should be fully understood and should be regulated by 

 the butter quotations of one of the leading butter markets. If 

 the butter maker is also responsible for the soliciting of cream 

 patrons, then he may be allowed a certain per cent on business 

 from new customers or on business increase, or he may receive a 

 definite fraction of a cent per pound of butter manufactured. 

 He may also receive a premium for quality. The percentage 

 system may be applied to all of the employees. A definite por- 

 tion of the annual profits might be set aside to be divided among 

 the employees in proportion to their earning capacity. The 



