From job-based pay to skill-based pay in unionized establishments - A three-plant comparative analysis

Analyzing the experiences of three unionized manufacturing firms in North A merica, this paper examines two relatively unexplored issues in the previou s literature: skill-based pay in unionized organizations and the transition from job-based pay (JBP) to skill-based pay (SBP). The three cases showed substantial variety, particularly in the areas of practical details of SBP and the work system in which SEP operates. The cases show that SBP can be s uccessfully designed and implemented in older unionized workplaces with lon g-standing Tayloristic pay practices and strong contract language. Specific ally, it was found that SEP can be introduced even where numerous job class ifications are retained and that seniority rights are not inconsistent with an effective SEP system.