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Illustrations · Q10

Q.State any three limitations of the Straight Piece Wage system.

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Limitations of the Straight Piece Wage system include:

  1. Quality may suffer — since earnings rise only with quantity produced, a worker chasing higher output may rush and cut corners on workmanship.
  2. No guaranteed minimum income under a pure piece-rate scheme — if a machine breaks down or raw material runs short through no fault of the worker's own, wages for that lost time fall to nil (statutory minimum-wage law typically requires a guaranteed floor, but the piece-rate LOGIC itself provides none).
  3. Risk of overexertion and excessive machine wear — workers may push their own pace, and the machines they operate, beyond a safe or sustainable level to maximise the units produced. …

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