Posits that wage incentives should properly compensate the individual or group for added output attributable to only the individual or group, and not for added output attributable to managerial improvements. Focusing on grievance arbitration, the author takes issue with Mr. Waite’s [1955, page 25] paper on a number of points, but principally on the role of the arbitrator. Mr. Seybold suggests a more active role for the arbitrator in the process, toward the promotion of workability and the acceptance of wage incentive systems.