In studying the activities of 274 shop floor hourly operators during a period of 16 months, the evidence indicates that during a period of equitable payment system the number of grievances decreased 31 times, labour turnover 16 times, lateness 6 times and absenteeism nearly 3 times while at the same time productivity increased by 22% in comparison to an equivalent period of inequitable financial incentive payment system. These improvements are attributable to the relative and not absolute financial compensation of the operators.