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Libbey Glass workers incentive system

Company representatives and plant workers of
Libbey Glass Inc., based in Toledo, Ohio, US, have been negotiating a workers“ incentive system which was institutionalised in the company during World …

Company representatives and plant workers of Libbey Glass Inc., based in Toledo, Ohio, US, have been negotiating a workers“ incentive system which was institutionalised in the company during World War II. Under the system, workers with a US$ 10.85 per hour average are qualified to raise their weekly pay by US$ 0.50 to more than US$ 200. This system adds to the plant“s high production costs, which in turn endanger the company“s long-term security. The company wants to scrap the old incentive system and offered to replace it with a 10% wage increase until 1998, a new profit sharing plan and increased employer contributions under a retirement savings plan. The American Flint Glass Workers Union urged its members to boycott their votes for the contract, and stage a walkout if the company refuses to hold a new round of negotiations.

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