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DuPont adopts pay incentive plan.

DuPont Co. announced plans to adopt a pay incentive plan for the 20,000 employees in its fibers production operations. The unions that represent 6,000 of the employees contended that the proposal would be acceptable only if employees are given a voice in setting the profit goals because profits could be influenced by conditions beyond the employees' control, such as general slowdowns in the economy. DuPont said it would negotiate with the union on the proposal, and if an agreement cannot be reached, would still implement the plan for the 14,000 nonunion employees.

Under the plan, which would be phased in over 5 years beginning in 1989, base pay would be 6 percent lower for covered employees than for employees holding comparable jobs in other company operations. Covered employees will receive lump-sum payments that will bring their total annual pay to 97 percent of their counterparts' pay if the unit attains 80 percent of the yearly profit goal, to 100 percent if the unit meets the goal, and to 112 percent if the unit exceeds the goal by 50 percent. Whatever the amount of the payment, it will not be incorporated into base hourly or weekly pay rates. The fiber employees will receive 94 percent of the value of the amount of future wage increases received by their counterparts to preserve the 100-to-94 ratio of base pay.
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Title Annotation:Developments in Industrial Relations
Author:Ruben, George
Publication:Monthly Labor Review
Date:Dec 1, 1988
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