Demerits of Piece Rate Wage System

Question

What are the demerits of Piece Rate Wage System?

Answer 1

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.