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PRODUCTION BONUS

In some private sector enterprises provision is made in formal or informal agreements for the payment of a production bonus. A plan to adopt the system of relating pay to productivity in public sector enterprises such as the Public Power Corporation (DEN) was not followed through in 1988. The National General Collective Agreement for that year was accompanied by a supplementary text from the Minister for Labour which sets a framework for the productivity dialogue, stating that the need for an improvement in productivity as the means of achieving an improvement in real earnings necessitates the adoption at enterprise level of schemes relating pay supplements to productivity. Agreements concluded during 1988 provided for the payment of bonuses in 1989. Following the final abolition of the mechanism for the automatic index-linking of pay ( ATA ), contractual provisions relating pay to productivity are expected to become more widespread. Despite the union opposition to this system of payment, it expresses the new government policy on pay determination (see pay/wage ).

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