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Wednesday, 28 March 1973
Page: 841

Mr Lynch asked the Minister for Labour, upon notice:

(1)   What information has his Department on the percentage of employees covered by incentive systems.

(2)   What is the basis of these systems.

(3)   When was this information obtained.

(4)   If the details are not up-to-date as at 1972, will he initiate a survey to provide the latest information.

Mr Clyde Cameron (HINDMARSH, SOUTH AUSTRALIA) - I am informed that the answer to the honourable member's question is as follows:

(1)   and (3) A survey conducted by my Department in 1969 on wage incentive systems in 1,327 firms in private industry showed that 26 per cent of 623,344 employees employed by the firms were working under an incentive system. The employees constituted 21 per cent of the Australian non-government workforce.

(2)   74.5 per cent of the incentive schemes were those which directly related bonus payments to measured performance. Other systems included bonus payments on merit ratings (11 per cent of schemes), indirect bonuses where employees not directly engaged on production work were paid a bonus based on the performance of direct workers (6.5 per cent), profit-sharing (3 per cent) and systems providing for a regular bonus (2 per cent).

(4)   The results of the survey when compared with those of a 1949 survey conducted by the Commonwealth Bureau of Census and Statistics on the extent of the use of incentive schemes suggests that the incidence of these schemes has shown little change over 20 years. In 1949 28 per cent of employees covered by the survey received incentive payments whereas in 1969 the figure was 26 per cent. There is no reason to believe that there has been a significant change since the 1969 survey.

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