Contract Incentive Systems In The Underground Metal Mining Industry

Contract Incentives have long been employed in the underground hardrock industry as a tool to influence employee performance, enhance productivity, and control labor costs. While traditionally structured to establish a direct correlation between performance and compensation, many contract programs have evolved into elaborate systems that promote strategies often viewed as independent of productivity. This paper presents the findings of research into these contract incentives and was conducted with the cooperation of 33 mines utilizing a spectrum of employee compensation and incentive programs. Emphasis of this analysis focuses on the types of production contracts observed and their role with respect to employee earnings.