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Title:Piecework: Theory and Applications to the Motor Carrier Industry
Authors:Brenda Lantz
Publication Date:Oct 1992
Report #:SP-107
TRID #:01705826
Keywords:economic analysis, equity (finance), motor carriers, pay, rates, recommendations, truck drivers
Type:Research Report – Staff Papers



In the motor carrier industry, many drivers are paid based on the number of miles they drive. Because of this, they can be said to be on a piecework system of payment. This paper explores some ideas and theory about piecework and applies these to drivers. The theories discussed are those pertaining to (1) setting the piece rates, (2) changing the rates, (3) the seeming lack of employee loyalty, (4) the seeming importance of quantity over quality, and (5) equity theory.

Each of these areas has specific implications for the motor carrier industry and it is believed that employers in this industry can benefit from the discussion and recommendations that are made through a better understanding of this method of payment and the implications for their drivers.

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