Sweden's experiments in productivity gainsharing: a second look

A multifactor productivity gain sharing program at Volvo's Kalmar manufacturing plant is examined. Under the program, all employees share in the financial benefits of improved factory productivity. The goals of the plan are to increase employee identification with the interests of the company, increase employee participation in the decision making process, promote equity within the company, and improve managerial competence. In general, the program has produced favorable results; 70 percent of the employees rated the wage system either fair or very fair.