From job-based pay to skill-based pay in unionized establishments: A three-plant comparative analysis

Analyzing the experiences of 3 unionized manufacturing firms in North America, 2 relatively unexplored issues in previous literature are examined: 1. skill based pay in unionized organizations, and 2. the transition from job-based pay to skill-based pay. The 3 cases showed substantial variety, particularly in the areas of practical details of SBP and the work system in which SBP operates. The cases show that SBP can be successfully designed and implemented in older unionized workplaces with strong contract language. Specifically, it was found that SBP can be introduced even where numerous job classifications are retained and that seniority rights are not inconsistent with an effective SBP system.