Common use of INCENTIVE STANDARD Clause in Contracts

INCENTIVE STANDARD. The standard is expressed in terms of standard hours required to produce 1000 units, such as pieces, pounds, or feet. It measures how many units an average qualified employee can produce under standard conditions in one hour at a normal pace. It includes time allowances for miscellaneous work elements; short delays which are unavoidable even when the job is running properly and allowances for rest and personal needs. An employee earns incentive pay by producing more than standard. The incentive pay is computed on the base rate as set forth in Schedule "A". For example, if the standard is 100 pieces per hour, i.e., 10.0 standard hours per thousand pieces, the average qualified employee, by applying reasonable proportionate extra effort, attention, and care to the job, should, working as provided in paragraph 1, turn out 960 pieces in an 8 hour shift. He/she will then have earned 9.6 standard hours. 10 Standard Hours 900 x = 9.6 hours 1000 pieces If the base rate on the job is $1.60 per hour, his earnings for the shift will be $15.36 ($1.60 x 9.6 standard hours), $2.56 more than he/she would have earned at the base rate.

INCENTIVE STANDARD. The standard is expressed in terms of standard hours required to produce 1000 units, such as pieces, pounds, pounds or feet. It measures how many units an average qualified employee can produce under standard conditions in one hour at a normal pace. It includes time allowances for miscellaneous work elements; , short delays which are unavoidable even when the job is running properly and allowances for rest and personal needs. An employee earns incentive pay by producing more than standard. The incentive pay is computed on the base rate as set forth in Schedule Appendix "AB". For example, if the standard is 100 pieces per hour, i.e., i.e. 10.0 standard hours per thousand pieces, the average qualified employee, by applying reasonable proportionate extra effort, attention, and care to the job, job should, working as provided in paragraph 1, turn out 960 pieces in an 8 hour shift. He/she will then have earned 9.6 standard hours. 960 x 10 Standard Hours 900 x standard hours = 9.6 hours hrs. 1000 pieces or Rate 600 min. M earned 576 min. Base Rate $1.60 hr. Worked 480 min. Earned Rate $1.92 hr. Bonus 96 min. or 20% If the base rate on the job is $1.60 per hour, his his/her earnings for the shift will be $15.36 ($1.60 x 9.6 9.60 standard hours), $2.56 more than he/she would could have earned at the base rate.