Leisure Textiles: Salary Versus Piece Rate

Arif Iqbal Rana and Hassan Rauf Chaudhry

Asian Journal of Management Cases, 2007, vol. 4, issue 2, 95-116

Abstract: This case study deals with Leisure Textiles, a knitwear manufacturer in Lahore, Pakistan. It describes the general practices followed in the sewing industry with reference to the compensation systems followed. It also deals with the roles of key characters in the sewing industry. Leisure Textiles had followed the predominant system of ‘piece rate’ for compensating its sewing workforce. However, in 2000 the company's CEO implemented the salary-based system in one of the sewing units on a test case basis. The case discusses the efforts made at implementing a salary-based system in place of the piece rate system and the problems associated with these efforts.

Keywords: Sewing industry; incentive system; piece rate; salaried workforce; workforce hiring; operational control; labour cost (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:4:y:2007:i:2:p:95-116

DOI: 10.1177/097282010700400203

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