The use of crew incentives in logging operations in the western United States is an effective way to reduce costs and provide attractive wages. However, such systems require a reliable method of setting the price, a good estimate of the daily costs of labor and equipment, and a method of tracking production output. The introduction of an incentive system requires a substantial initial investment of company managerial time as well as the goodwill and trust of workers. The cost and wage behaviors, as well as the advantages and disadvantages, of five incentive systems are described in this paper. Calculations for the systems are demonstrated. The principles described can be applied to cutting, hauling, yarding and loading, or road construction. They are applicable to the operations of independent contractors or large companies and to union or nonunion crews.
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