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A description of how Continental Airlines achieved a turn-around in efficiency by aligning the interests of employees, customers and stockholders: process and technological changes were accompanied by changes in organizational culture, including communicating with employees, treating them with respect, and rewarding performance.

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Arbitration of wage incentives: Three perspectives

Milton Rubin discusses the arbitration of pay for production work standards and work measurement, including time studies and work standards. Alfred Dybeck discusses the arbitration of wage incentive issues in the steel industry. William Gomberg discusses arbitration under wage incentive payment plans, including Postal Service production standards arbitrations and steel industry practices under the 1968 …

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The author highlights the different approaches to incentive taken by management and labor. He discusses the “tests of fairness” for incentive standards, and reviews them from management’s perspective. Arbitrator Davis agrees that it is appropriate to arbitrate incentive disputes, and points to increased management acceptance of such arbitration. He notes, however, that unions often do …

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The author’s view is that the “central problem in the determination of most wage disputes under wage incentive payment plans is the dispute over the production standard.” He discusses the arbitrability of production standards and agrees that labor prefers non-engineers as arbitrators in rate-setting disputes. Mr. Haughton is an advisor to arbitrators who handle these …

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Incentive Problems workshop

The theory and application of methods and standards engineering in incentive arbitration cases are described.

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Discussion of wage incentives, defined as all monetary payments made to employees as an encouragement to perform work. The author divides the discussion into two parts: contract interpretation and factual analysis. The author emphasizes the importance of a conservative arbitral approach, so as not to upset the established system. The author emphasizes that arbitrators must …

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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 …

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