The quarterly bonuses recommended by the area directors were meant to reflect the branch manager's overall par score, labor grade, and current compensation.
Because the maximum bonus award under the scorecard was intended to be a function of the branch manager's labor grade and current salary, we include these factors as control variables in the analyses (where 1 = the lowest labor grade and 3 = the highest).
Results for labor grade and salary are not presented to simplify presentation.
Other terms retained the maintenance of membership clause, but with one open period instead of two; provided 36 holidays over the term of the contract; eliminated the union's right to grieve jurisdictional disputes; established a joint committee on Oversight of Cooperative Initiatives, such as career enhancement, alcohol and drug abuse, and performance management; removed the labor grade
reduction provision in the professional unit's contract; and enhanced union security provisions.
These comparisons, it must be stressed, were limited to salaries of workers in company jobs matching PATC survey definitions; a company's rate range for a labor grade
normally would cover a number of jobs, some within, and some excluded from, survey converage.
The Aeronautics unit said some salaried workers would be offered voluntary separations, which will be informed in August to those eligible, to minimize the number of involuntary layoffs that would begin in mid-September, with the greatest impact from the cuts likely to be on workers in higher-level labor grades
It's important to know the levels of machine operator (Grade One or Grade Two) required, as well as the labor grades needed for the next operation in the line or to change a grinding wheel or fixture.
There is no concern with the different labor grades that are required to do the tool setting, the cost of inventorying very expensive broaches, the cost of deburring, and the cost of a longer straightening time.
Confronted with such problems, line managers sought to manipulate the system by (1) re-evaluating or redescribing jobs to move them to higher levels on one or more job evaluation dimensions, (2) upgrading employees to higher-level jobs, and (3) moving employees up in the rate ranges assigned to specific labor grades. Krueger (1988) provided evidence that declines in the quality and quantity of applicants for federal jobs resulted from a decline in the ratio of federal to private sector wages, creating similar pressures to accommodate the external market.
Jobs are then often clustered into labor grades based on scores generated by the measurement procedure.
(The base hourly rate under the previous contract averaged $11.50.) The agreement also restores merit increases and provides for new labor grades
and rate ranges.
Employees in higher labor grades
received general wage increases of 4 percent retroactive to October 1, 1989, and 3 percent on October 1 of 1990 and 1991, plus two lump-sum payments of 3 percent of the employee's gross earnings in the preceding 12 months, on October I of 1990 and 199 1, and a similar 2-percent payment on October 1, 1992.