Schemes Listed below are a number of alternative reward payment schemes along with the threat they pose to unionized workers. Profit Sharing has a great disadvantage for workers. Many factors that contribute to profitability are beyond the control of most employees. Management decisions and general economic conditions play a much larger role in bottom line profit or loss financial results. In addition to this uncertainty, in the present economy high profits are not always good for workers.
Many companies post huge profits in large part due to plant closings and layoffs.
Gainsharing is rarely a good deal for workers. In many cases it leads to cutbacks in staffing levels as workers transfer their knowledge to their bosses to increase productivity. Remember, piece work is giving workers whips so they can beat themselves. Gainshairing is giving workers whips so they can beat each other. Pay for Knowledge , in most company plans, is no more than cross-working, which is management's plan for increased worker flexibility and the breaking down of job classifications.