Wednesday, September 18, 2013

Rowan - Wage Plan - Going

James Rowan, a member of a prominent firm of engine
builders in Glasgow, has put forth a modification of the
premium plan, generally known as the Rowan premium,
which has as one of its principal objects the protection of
the shop against such mistakes as are referred to in the
preceding paragraph. The fundamental principle of the
Rowan premium plan is that under no circumstances can the
workman make more than double his regular day wages.
Under the Rowan system the time saved is converted into
a percentage of the standard time. The workman then re-
ceives, as a premium, this same percentage of the time he
actually took. Another way of defining the Rowan premium
takes the form of the equation :

Time saved ~.

; X 1 inie taken = Premium.

Time set

The system is regarded with a good deal of favor in Eng-
land, but it is not much used in the United States. It pays
the workman more largely than the Halsey plan for the
earlier (and easier) savings, but as the base upon which
the premium is calculated shrinks constantly as time is saved,
the man's profit from large savings of time decreases pro-

portionately. The actual premium is the same at 90 per
cent time saved as at 10 per cent. There are some other
special modifications of the premium plan in use, but it is
not important to include them here.

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