PIECEWORK
| GERMANY |
| AKKORD PIECEWORK |
Payment system which comes ahead of the incentive bonus system as the most widely used form of payment by results in the Federal Republic. With piecework, earnings are directly dependent on the number of units of work performed. This means, on the one hand, that through industriousness and dexterity employees have the chance of earning a higher wage than would be possible with time-based pay . On the other hand, employees on piecework are exposed to increased work pressure and a considerable degree of control, and any relaxation of their efforts is reflected in their pay. It is therefore particularly important that the rates fixed for piecework should be reasonable and fair.
In the case of money piecework , pay is determined by multiplying the number of units of output by a fixed price that is attached to each unit. Because of the difficulties involved in adjusting this whenever there was a pay increase, the money piecework system is no longer used today.
In the case of time piecework , pay is determined both by the time factor, i.e. a standard time allowed for each unit of output, and by the money factor, i.e. the amount to be earned per minute. This is at least one sixtieth of the hourly wage of the corresponding pay grade , but there is usually an additional piecework premium of about 15 per cent. Difficulties often arise in fixing the standard time allowed. The principle is that when working at standard performance employees should earn the hourly rate of the comparable time-based pay , and if they exceed standard performance they will earn extra. If they fail to reach standard performance, they earn less than the comparable time-based pay. Standard performance is the rate of output which a reasonably competent, trained and experienced employee can maintain under normal working conditions throughout normal working hours without harmful effects on health. Allowance is made for time for personal needs, minor disruptions in the work flow and short breaks. The time factor is fixed using ergonomic methods such as RefA (formerly the "Reichsausschuss für Arbeitszeitermittlung" (Reich Time and Motion Study Committee), now the "Verband für Arbeitsstudien und Betriebsorganisation e.V." (Work Study and Work Organization Association)) or MTM (Methods-Time Measurement). The time factor makes it simpler to adjust the money factor when pay increases are awarded.
Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.