MANAGEMENT: Incentive Pay Finds a Way

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To the one great union objection to incentive pay—that it causes a speed-up with no commensurate rise in worker earnings and eventually unfair time-study revision by management—Murray's union and management feel they have the answer in the five-man time-study committee. Wage increases are tied directly to production increases and on all time-study questions, the committee's word is final. Neither the local union nor management can overrule it. The union is well content. Three weeks ago it signed a contract to continue the incentive plan until Jan. 1, to renew it then on an annual basis. Murray management is well content, too. Soon it expects production to increase another 4%, eventually to hit the 125% ceiling—and stay there.