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

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