New-York tribune., 1922-09-24
Standard Oil Co. Finds Bonus
On Ships Is Aid to Efficiency
Plan Does Not Offset Higher Operating Costs
Under u. S. Flag, but Mere Than Pays for Itself
Other Companies Are Considering the Idea
By David S. Kennedy
Shipping Editor of The Tribune

watching the Standard Oil experiment
with considerable interest, and some
OF them, especially the United Ameri-
can Lines, are giving serious thought
to adopting similar system.
The bonus system is not the only
means devised by the Standard Oil
Company to hold it's men. Other meth
DDS include pensions for old age and
incapacity, free life insurance and
chase stock on favorable basis.
The total effect is to diminish
the turnover in employees, especially
among the licensed and unlicensed
officers. The same success has not
attended the operation of the plan with
regard to the crews, as seamen are fre
quently carefree adventurers who are
constantly seeking new routes.
Original Bonus Plan
The original plan adopted by the
company provided for payments of
fixed percentages of wages received to
captains, chief officers, chief engineers.
mates, engineers, boatswains, chief
stewards, chief cooks and pumpmen
for the successful fulfllment of the
following eight elements in efficient
operation of vessels:
i. Safe navigation.
2. Operating efficiency.
8. Efficiency in engine department.
4. Economy in engine department re-
pairs.
5. Economy in deck department re-
pairs.
s. General physical condition Cup
keep.
Z. Freedom from waste in use of pro
visions.
s. Economy in the use Of stores.
II the vessel attained 100 per cent
or more in all sub divisions the captain
and chief engineer received an addi-
tional 10 per cent.
The captains, chief engineers, three
mates and three assistant engineers on
the five vessels having the highest ag-
gregate score received 10 per cent, and
the five next best per cent of their
salaries, as additional bonus. The rest
of the seagoing personnel were paid 5
per cent of salary after six months and
10 per cent after one year or more of
continuous service.
This plan involved the establishment
Of definite standard, constituting 100
per cent efficiency for all OF the ves-
sells of the fleet upon which awards
were made. The difficulty Of creating
such standards on a feet composed OF
vessels OF so many different types, de-
signs and ages, and particularly under
abnormal shipping conditions, soon be-
came manifest. This proved to be the
greatest defect in the scheme.
1t resulted in payments to personnel
who were able to reach or exceed the
standards at the expense of ofmaintenance
and proper care of the vessel. Necessity
required frequent transfers Of officers,
which interfered seriously with CON
tinuous efforts. Further than this. ii
was realized that the trades in which
the ships were engaged had q direct
bearing on the operation and hazards
Of navigation. For these reasons, and
also to incorporate continuous service
in addition to efficiency as the basis
for payment to officers, a revised plan
was made effective on the first of the
year. This system groups the bonus
under two headings-(a1 Continuous
service and (b) Efficiency.
The New Plan
The new plan provides for the nav.
ment Of bonus of 3 per cent of the
wages received for each year of con-
tlnuous service up to five, making a
maximum Of ID per cent after five
years. This is in addition to the eff
cheney bonus based upon the elements
enumerated above, with a maximum OF
70 per cent of the annual wages. In
estimating efficiency, the company ap.
plies the following defnitions:
1. Safe navigation--In order TO carr
TINS bonus the vessel must be free
from all accidents except those which
are manifestly beyond the control ot
the ships officers or other members O,
the crew. In addition, any employee
directly responsible for an accident for
felts his entire efficiency bonus.
z, Physical condition-This cover,
the general condition of the vesseps
hull, commandments ard rrooa1I;u.