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A system of wage payment in which a worker is guaranteed a certain rate of pay hourly or weekly in exchange for an agreed level of work effort and output, established by time and motion study. The system was popular in the 1970s, when it was seen as a replacement for systems of payment by results that were associated with high levels of industrial action . The introduction of MDW reduced levels of overt conflict, but also reduced levels of output as incentives were eliminated. Some employers re-introduced a direct output-related incentive element on top of the MDW to overcome this.

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.

Page last updated: 14 August, 2009