Demerits of Piece Rate Wage System
What are the demerits of Piece Rate Wage System?
Expert
Following are the demerits of Piece Rate Wage System:
1 If rates of wages are not scientifically fixed and acceptable to the workers, would result into workers exploitation and may prove counterproductive
2 As workers are interested in completion of the job with a greatest speed, may damage the machinery, quality of output or may increase rate of hazards in an organization.
3 Trade unions generally do not like this system of wage payment; they may not have full support and acceptance. It may be the major issue for industrial dispute.
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