The Effect of Fixed Work on lncentive Rates

AN INCENTIVE or bonus system of payment is commonly used for mine labour. The incentive rates are usually based on the variable units of production, such as dollars per foot of drift advance or cents per ton of ore broken. Portions of the work that must be done to achieve the units of production are independent of the production unit and tend to be fixed work for the shift or for the job, irrespective of the production achieved. This fixed work has considerable influence on the equity of incentive rates. The effect of fixed work is to accelerate the loosening or tightening of rates if the production task is over-achieved or under-achieved, and of increasing the loosening of rates loosely set and the tightening of rates tightly set. This gearing of mine contract rates is the reason why changes in conditions, materials, equipment, or methods will change the incentive earnings to a greater degree than would normally be expected. Obviously, therefore, care should be taken in the setting of the task for incentive rates as the gearing makes an inequitable rate even more inequitable.
Keywords: Change, Drifts, Equipment, Incentives, job evaluation, mine, PI, shift work, work study, Materials, Mine, Mines, Production, Standards
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