Final answer:
Total compensation for production workers generally includes base or hourly wages, supplemental pay, fringe benefits, and potentially stock-related benefits. Union presence and worker productivity can influence compensation levels, which are deeply interconnected with the valued output produced by workers.
Step-by-step explanation:
The total compensation package for production workers at a company's production facilities typically includes several components. Base wages or hourly wages make up a significant portion of compensation, often around three-quarters of the total. Additionally, workers are provided with various forms of supplemental pay, such as overtime, bonuses for productivity, or year-end bonuses related to improvements in practice. Fringe benefits, which can include health benefits, retirement plans, employer payments to social insurance such as Social Security and Medicare, as well as unemployment and worker's compensation insurance, form another crucial element of the compensation package.
Some packages might also offer stock-related benefits, such as discounts on stock purchases or stock options, which can be tied to company profitability. Incentive payments, either per non-defective item produced or as piecework incentives, can further boost a worker's income, especially in high-production scenarios. Lastly, bonuses for perfect attendance or contributions to best practice improvement are also sometimes included. It's important to note that the presence of a union and the productivity level of the workers can affect the overall compensation, as can the value of the output the workers produce.