The New Zealand Railways Magazine, Volume 1, Issue 9 (February 25, 1927)
Premium Bonus System
The manner in which premium work is recorded and paid, is what I now wish to make clear. In the first place a premium foreman or supervisor is assigned to record the work of each department. He carries with him the premium record form as shown below, and his duties are to check the starting and finishing times of all jobs in his section. He has to assign the allowed times, which have been duly authorised, and to make new rates when they are required. The latter have to be checked and approved by the foreman in charge.
The top portion of the premium record form is laid out so as to accurately describe the work done and its identification in the authorised schedule of allowed times. Each successive job is entered in the next line down, and additional sheets are added as required. At the end of each fortnightly period all of the allowances are totalled. This gives the “period total” of “times allowed.”
The bottom portion of the form is a record of the “time taken.” If only one man is working on a certain job his name alone appears on the form, but if there are two or more engaged on any job, all the names are so placed. The amount of time spent by each man is entered daily in the space provided for the purpose.
At the end of each period, the forms are “closed” and where necessary, all finished work is paid for. If there are several names on the form, the total hours saved are proportionately divided on the basis of the number of hours each has put in on the job and each gets that number of hours' premium at his own premium rate. If the total time taken is less than the total time allowed, the difference in time is paid for as a premium. The premium rate is fifty per cent. of the regular wages rate of the worker. Should no premium be earned, there is no penalty such as carrying forward losses which require to be made up, before premiums are again paid. Each period's forms stand alone. As previously stated, regular wages are paid whether or not any premium bonus has been earned.