FIFTH NATIONAI, CONSERVATION CONGRESS :335 



he had received previous to the inauguration of the bonus system, and, in addi- 

 tion, shared equally with the foremen any savings in operating costs in their de- 

 partments below the base agreed upon. The inauguration of the system led to a 

 readjustment of labor and in some cases a reduction in the force ; closer coopera- 

 tion among foremen; lower costs of operation; and greater personal interest on 

 the part of the foremen in their work. 



The results have been satisfactory to all concerned. It has a disadvantage in 

 that the benefits accrue only to a few employes. With the exception of some 

 workmen who received an increased wage for more work, common workmen do 

 not have a share in the profits. It is believed that some scheme which gave an 

 added incentive to the common laborer would be desirable and also profitable. 



The firm using the above system has not, so far as known, apphed the bonus 

 system to logging work. 



A bonus scheme used by one southern logger was discussed at the last ses- 

 sion of the Southern Logging Congress. The plan provides a reward for good 

 work and a penalty for ineiificient work, in the latter respect differing from the 

 other mentioned. 



The scheme is about as follows: The average daily wage and cost of main- 

 tenance have been used to determine the cost per thousand feet for an assumed 

 daily base of 400 logs. This daily output, however, is greater than the daily 

 average of the crew. In case the output exceeds the base, a bonus is granted to 

 each crew, while a reduction of the output below the base automatically reduces 

 the compensation of the men below the daily wage received before the bonus 

 scheme went into effect. • 



This method of handling a bonus system is unsound, since there are many 

 factors beyond the control of the workmen which may reduce the daily output; 

 the minimum daily wage each is to receive is uncertain, and therefore discontent 

 is almost certain to result from the application of the scheme; the base is too 

 high, since it is not an average day's work but a standard which the workmen 

 seldom can attain. It is not believed that satisfactory results can come from a 

 system by which workers are penalized by a reduction of their wage below a fixed 

 minimum. A given wage must be assured to the laborer to make him content, 

 and then an opportunity should be afforded him to increase his daily earnings by 

 the exercise of more ingenuity and resourcefulness. 



In hiring men, especially for logging work, it is suggested that they be re- 

 quired to sign a formal contract stating the conditions under which they accept 

 employment, the fees that are to be charged for school and hospital support, 

 doctor's fee, insurance, etc. A contract of this character would eliminate the 

 trouble which sometimes arises on pay-day with new men who object to certain 

 fees being retained by the company, claiming that they were ignorant of the fact 

 that such charges were made. 



The committee is not prepared to recommend or endorse any particular plan 

 for rewarding laborers for efficiency, since there are many phases of the ques- 

 tion to be studied before it can be determined what methods are, in general, 

 applicable to the varied work of lumbering and to what extent any particular 

 system may be applied. 



