Excerpt from The South African Mining Journal, Vol. 26: With Which Is Incorporated the South African Mines, Commerce and Industries; August 11, 1917

The Committee, however, wishes to put forward for earnest consideration the suggestion that when it is desired to melt method of payment by results, the fiat'price no cost contract with a make up in the nature of a basic rate should be more generally adopted. With the exception, perhaps, of some elaborately designed bonus system which would be difficult to understand, the flat price no cost contract is the only 'one which regulates the earnings in exact pro portion to the work done; it further has the merit of simplicity, and since there are no charges for stores and labour, its price will be comparatively low, so that ordinary inaccuracies in measurements will not materially affect a man's earnings. Objections, of course, can be raised to most things, and we realise that the flat price no cost contract is no exception to this rule. We, however, believe that most of the difficulties can be overcome. In evidence, it was stated by some witnesses that a. Charge for stores and native labour was an absolute necessity in order to guard against wastefulness on the one hand and over-marking of the native tickets on the other. In view, however, of the fact that 37 per cent. Of the men engaged in breaking ground during 1915, for example, were employed on the day's pay system where no charge is made for these commodities, it seems that by means of comparative statistics or otherwise there must be some method of controlling these matters, and that the dif ficulty is not so great as might at first appear. But even in the absence of any elaborate method of checking, we think that the point could be, met by offering, for instance, separate bonuses for economies in one or other respect. In suggesting the flat price no cost contract the Committee has in mind that it is generally to the interests of all parties that fundamental issues should be clear cut.

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