10/13/06 Solving problems with piece rate

Solving problems with piece-rate. I'm Greg Martin with today's Fruit Grower Report. When it comes to piece rate, traditionally both the farm employer and worker have come to believe that the other is out to cheat him. Piece rate, rightfully so, is often associated with a game played between the two. Yet, the proper piece-rate design may well save agriculture in these days of tight labor markets. Employees can maximize earnings while farm enterprises reduce their costs. Gregorio Billikopf with UC Davis says it can solve problems. BILLIKOPF: When piece rate pay is effectively designed it has the potential to solve many of the problems that agriculture is facing today. He says not to panic at the earnings. BILLIKOPF: Piece rate workers have the potential of earning substantially more money than when paid by the hour. Instead of panicking at the hourly equivalent that a piece-rate paid worker is earning, look at the bottom line such as cost per vine pruned or pound picked. Once a farm employer can see the benefit of crew workers earning substantially more, they are ready to consider the next step. BILLIKOPF: During harvest the ideal conditions for the picker are plants loaded with vegetables or fruit. Such a loose definition needs to be translated into a specific minimum number of pounds per feet, per tree, etc. That's today's Fruit Grower Report. I'm Greg Martin on the Northwest Ag Information Network.