Dayton Daily News Library
Honda, Nucor try new paths
* Pay at automaker and steelmaker is at least partly tied to the company's
profit.
Published: Wednesday, December 16, 1998
Series - Part 4 of 4
Two-tier and three-tier wage structures are common across the country, but
they're not the only tools used to boost productivity and profits.
At Honda of America Mfg. in Marysville, production workers form teams that
are moved around the plant where needed. These workers, called "associates,"
also are paid well. Associates earn a uniform base pay of $19.60 an hour, with
profit-sharing and attendance bonuses that bring the average compensation to
$22.77 an hour.
`We have never even entertained the thought of a tiered wage system,' said
Tim Garrett, the company's vice president of administration.
The company also has never had a layoff.
At the nonunion Nucor Steel plant in Crawfordsville, Ind., workers and
managers share the sacrifice in hard times - and reap the rewards in
profitable years. About 60 percent of wages are tied to the productivity and
performance of teams, and objective standards such as tons of steel produced
can boost a production worker's annual earnings to $75,000 a year.
The plant has almost no turnover.
`I love working for Nucor. It's a very fair company,' said Norm Libengood,
a furnace lead man. `We share in the profit, and we share in the pain.'
Main story:
CHANGING WORKPLACES
Nucor: share pain, gain
Teamwork boosts morale, and paychecks, at the steel plant, but also shrinks checks when times
are tough
Sidebars:
HONDA
No tiers, no unions, lots of flexibility
Honda workers can beat the pay of those at the Big Three because they play by different
rules.
FOOD WORKERS
Employees found separate scales left bitter taste
The union has mounted a recruitment drive to find its unity in numbers.
Copyright, Dayton Daily News.
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