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The New Zealand Railways Magazine, Volume 1, Issue 6 (October 24, 1926)

How a Premium rate is set

How a Premium rate is set.

The “Allowed Time” for a job is made up of four factors. First the “actual time” required to do the job (calculated or studied). Secondly the addition to machine running time of 10 per cent. for machine slip. Thirdly the addition of 20 per cent. to all handling operations for the human factor; and Fourthly 40 per cent. is added to the sum of the first three items as bonus allowance.

I want you to notice particularly the last item, and remember that under Premium the “time saved” is divided “fifty-fifty” between the operator and the railway. I want to point out particularly that under Premium double the bonus allowance is added to the time required to do the job, as compared with that added under modern Piecework systems; so that


The earnings of the operator justify his effort.


There is an added incentive to try and make a bonus.


The railways benefit progressively with the operator.

Explaining these items further:—