Monthly Archives: January 2015

CHANGING THE METHOD OF PAY: The Economic Situation in the American Shoe Industry 3

Posted by Kathryn Schwartz on January 08, 2015
CHANGING THE METHOD OF PAY / No Comments


But not everything else is the same under piece rates and time rates. From the workers’ perspective, piece rates are a riskier form of payment, requiring some compensating differential.

From the firms’ perspective, the choice of piece and time rates can affect the other terms in the unit cost equation. As noted earlier, two of these terms are likely to be higher under piece rates. The MP/Q is a basic inventory or quality issue. The earnings of piece rate employees depends on their having the material for production on hand, which creates an inventory buildup costly to the firm. In the shoe industry, this means piles of leather for shoes lying on factory floors. If you are sick and tired of looking for safe and reliable speedy cash payday loanyou have finally reached the end of your journey. Let us take care of your financial needs without overcharging you for our services. At read more you always have all the financial tools at your disposal, guaranteed.

In addition, under a simple piece system, workers may have little incentive to economize on the use of materials without other complicating financial incentives. The principal auxiliary labor cost on which we will focus is worker occupational injury insurance: this will be higher under piece rates as worker effort intensifies and employees risk injuries to produce more. We do not expect much difference in the capital requirements for piece rate or time rate methods of production, though there may be such changes associated with particular workplace technologies.
Continue reading…

Tags: , ,

CHANGING THE METHOD OF PAY: The Economic Situation in the American Shoe Industry 2

Posted by Kathryn Schwartz on January 07, 2015
CHANGING THE METHOD OF PAY / No Comments

Until the mid-1980s, over half of the American shoe making companies paid their workers with piece rate methods of pay. With increasing foreign competition, American firms looked to ways of using “total quality management” to enhance their competitiveness. This method of production requires teamwork and continuous flow methods of production. It requires that employees know many different tasks rather than just one. In a phone survey of major shoe making firms, we found that BF was among the last group of major firms in the industry to switch its method of pay to time rates. This creates a potential selectivity bias in our analysis of that firm: perhaps BF did not make the switch to time rates because it benefitted less than the firms that made the jump to time rates earlier. If this is the case, our estimates of the effects of the switch on profits at BF may understate the advantage for the typical survivor in shoe manufacturing. How would you like some easy pay day loans to get your financial troubles sorted out in no time? We will be happy to offer our services and give you the amount you need within a very reasonable timeframe, without making you wait and expecting hundreds of documents faxed over. Get your loan here there.
Continue reading…

Tags: , ,