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Why do trade unions oppose piece rate systems of remuneration? - Business Studies

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Question

Why do trade unions oppose piece rate systems of remuneration?

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Solution

Trade unions often oppose the piece rate system of remuneration for the following reasons:

  1. Excessive pressure on workers: Since wages depend on output, workers are forced to work faster, which leads to physical and mental stress.
  2. Neglect of quality: To earn more, workers may focus on quantity rather than quality, which affects the overall standard of production.
  3. Unstable and unequal earnings: Income can vary from worker to worker, causing inequality and insecurity, especially when output is affected by external factors like machine breakdowns.
  4. Discouragement of teamwork: It promotes individualism and competition rather than cooperation, which can harm group morale and unity.
  5. Exploitation risk: Employers might use this system to exploit labor by setting high targets without ensuring proper working conditions or fair pay.
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Chapter 8: Staff Remuneration - EXERCISES [Page 117]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 8 Staff Remuneration
EXERCISES | Q II. 7. | Page 117
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