Day 137 - 19 Jun 95 - Page 35
1 Q. Does that happen?
2 A. It has, yes.
3
4 Q. Looking back again at this page -- I am sorry for that
5 slight diversion -- "This is your chance to see how well
6 you are doing and how you can improve. Based on your
7 performance level, you will be considered for a pay
8 increase. The better your performance, the better your
9 increase. Here is an example of a pay for performance
10 scale." Then it sets out a graded range of increases. In
11 the right-hand column it says: "Until your pay is" which
12 looks like a kind of a maximum achievable rate?
13 A. That is correct.
14
15 Q. Is that example where a maximum or cap is given, is that
16 policy from Oak Brook which applies across the board in
17 America or not?
18 A. No, this is a model. This is used as a model, and
19 where it makes sense for the local market who are setting
20 the wage rates to put a cap in, they do it and where they
21 feel they should not be doing it or do some other variation
22 of this, they have a right to do that. This is really
23 meant -- this is a model, and our local regions do have a
24 right to modify this. This is one area where they might
25 modify, based upon the survey information they would get
26 back.
27
28 Q. What would be the reason for putting a maximum on the
29 amount that anybody at a particular level can earn?
30 A. There are really two reasons for doing it; one is if
31 you do not do that, you cause confusion and sometimes
32 unhappiness between people at different levels. If the
33 person below winds up with significant earnings above the
34 next level, that can cause some problems. But there is
35 also, given the market data, if you will, there is also a
36 point beyond which the value is not there to keep giving
37 increases.
38
39 Q. Can we look at the last part of this because this is
40 slightly different from anything we have yet seen so far in
41 this case. It says: "Once your hourly rate reaches the
42 maximum for your performance level, you will be considered
43 for a wage increase annually". Does that mean instead of
44 twice annually?
45 A. That means once.
46
47 Q. Once?
48 A. Yes.
49
50 Q. "You will, however, continue to receive regularly scheduled
51 performance reviews". Pausing there, Mr. Stein, what use
52 is a regularly scheduled performance review if you can only
53 get a increase once a year above a certain level?
54 A. OK. It serves a purpose of letting our employees know
55 how well they are performing, whether or not they are doing
56 -- what kind of job they are doing, a good job or
57 something above or below that. It is a way of measuring
58 their performance and letting them know what they are doing
59 well and what they need to improve on.
60
