The Decline of the Piece-Rate System in California Canning: Technological Innovation, Labor Management, and Union Pressure, 1890–1947

In the following article, Professors Brown and Philips examine two questions concerning wage payment systems. First, has the prevalence of incentive systems been affected by the rise of the modern corporate enterprise? Second, what has been the effect of institutionalized unionism on the prevalence of incentive systems? Brown and Philips explore these issues through a historical case study of the decline of the piece-rate system in the California canning industry, from which they conclude that in the context of Chandlerian industrial development piece-rate systems tend to give way to more complex incentive and hourly wage-rate systems. They explore this hypothesis further through an examination of historical data on wage payment systems for American manufacturing as a whole.