Towne Gain Sharing Plan

It is the group incentive plan.
The objective of this plan is to encourage cost reduction by foreman and workers.
Bonus is paid upon a reduction in Labour Cost alone.
A standard labor cost per unit for a particular period is determined and if actual labor cost per unit is less than the standard labor cost, 50% of the saving in the labor cost is distributed among workers and foreman in proportion to their wages.

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