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DAILY/DAY RATE. For a worker hired on a daily rate basis, the rate of pay is normally expressed as a rate for a standard number of work hours per day; the hourly rate, the quotation of a daily rate normally excludes premiums that may be paid for late-shift work or overtime hours, as well as bonuses for special conditions of work or for other reasons unrelated directly to production.

DAY WORK. Usually refers to work for which pay is based on time as contrasted to pay based on output.

DEADHEADING PAY. Payment to a transportation worker for traveling without a load.


DEAD WORK. A term used in mining, referring to nonproductive work, including the removal of rock, debris, and other waste matter from the product mined.

DEATH BENEFIT. Payment, usually a lump sum of money, provided to a worker’s beneficiary, in the event of death. May be provided by a pension plan or another type of employer-sponsored welfare plan, or by a union to its members. (See LIFE INSURANCE PLAN.)

DECERTIFICATION. Withdrawal by a government agency, such as the National Labor Relations Board (NLRB), of a union’s official recognition as exclusive bargaining representative.

DECERTIFICATIONS ELECTION. An election conducted by the National Labor Relations Board (NLRB) to remove a union from representation if the employees currently represented by the union vote, by a majority of those voting, to do so.

DECISION. A determination arrived at after review, investigation, interpretation, or consideration of facts or information.

DECISION MAKING. The response to a need or stimulus by means of acquiring and organizing information to yield alternate courses of action; and selecting one course of action from the alternatives.

DEDUCTIBLE. That portion of insured expense which the insured must pay before the plan’s benefits begin.

DEFERRED BONUS PAYMENT. A plan in which bonus earned in one period is paid out in one or more subsequent periods.

DEFICIT REDUCTION ACT OF 1984. Congress legislated new restrictions on the depreciation deductions and investment tax credits allowed to taxpayers for automobiles, airplanes, computers and other tangible properties used in a trade or business and/or in the production of income.

DEFERRED COMPENSATION. Money or other financial rewards earned in one period and paid in a subsequent period or periods. Deferred compensation can be salary deferrals, bonus deferrals, or supplementary retirement payments. The earnings are paid at a later date usually when the individual is in a lower tax bracket. No use of the funds can be made by the recipient until the agreed-upon transfer date. Postponed earnings designated for future income declaration under a qualified plan for postponing income tax on earnings until future years.

DEFERRED WAGE INCREASES. Wage changes that do not become effective until a specified future date.

DEFINED BENEFIT PENSION PLAN. A pension plan which specifies the benefits or the methods of determining the benefits but not the level or rate of contribution. Contributions are determined actuarially on the basis of the benefits expected to become payable.

DEFINED CONTRIBUTION PLAN. A procedure for investment of set contribution amounts for purposes of retirement, the value of which, at time of retirement, being dependent upon the market value of the investments made.

DELAY. An interruption of a specified sequence of work activity.

DELAY ALLOWANCE. A time adjustment for unavoidable interruption of work activity.


DEMOTION. An employee transfer to a lower paying and/or responsibility job.

DEPRESSED (INCENTIVE OR STANDARD). An incentive operation in which the performance is below the 100% level and where the operator is guaranteed at least 100% of the base rate.

DICTIONARY OF OCCUPATIONAL TITLES. A comprehensive compilation of job descriptions and titles published by the U.S. Department of Labor.

DIFFERENTIAL PIECE RATE. Plan under which piece rates vary at different levels of output.

DIFFERENTIAL PIECEWORK. A wage incentive plan using two or more piece rates. One rate is paid for production of a fixed quantity in a given time, and a higher rate(s) is paid for production beyond the initial level. Also known as Taylor differential piecework plan. (See MULTIPLE PIECE RATE PLAN.)

DIFFERENTIAL SKILL. Those objectively measurable factors (skills) which are required for a position, and, thereby, define that position as uniquely different from another position. The skills demonstrated by one employee as compared to those of any other employee.

DIFFERENTIAL TIME PLAN. A wage incentive plan that pays a higher base wage rate as production levels increase. A series of step bonuses for increased production.

DIRECT COMPENSATION. As opposed to indirect compensation, all forms of compensation before required (FICA, income taxes) and/or authorized (Community Chest, 401k, insurance premiums) deductions that involve direct and immediate payment to the individual, often including a base wage or salary payment.

DIRECT LABOR. (1) Work which is readily chargeable to or identifiable with a specific product. (2) Work performed on a product or service that advances the product or service towards its ultimate specifications or objectives. (3) Any labor whose cost is directly allocated to a product.

DIRECT LABOR BUDGET. A projection correlated with future time periods of total direct labor required to meet forecast work or production.

DIRECT OBSERVATION. A job analysis technique which involves direct observation of incumbent(s) actually performing the job.

DIRTY MONEY. Extra pay for especially disagreeable work.

DISABILITY. Any injury or illness, temporary or permanent, which prevents a worker from carrying on his/her usual occupation. (See PERMANENT AND TOTAL DISABILITY.)

DISABILITY PAY. Compensation for time away from work due to work-related injury or illness.

DISABILITY RETIREMENT. Retirement because of physical inability to perform the job. (See


DISAFFILIATION. Withdrawal of a local union from member ship in a national or international union.

DISCHARGE. Dismissal of a worker from employment for cause.

DISCIPLINARY INTERVIEW. The right of an employee who has been charged with wrong-doing; it precedes the assessment of discipline or discharge. It is a tool used to determine if the disciplinary action contemplated is appropriate or necessary.

DISCIPLINE. (1) (noun) A force resulting from training and education which causes an individual or group to react on the basis of close cooperation, mutual understanding, and knowledge of regulations, customs, habits, traditions, or mores of the group. (2) (verb) To apply penalties for undesirable behavior.

DISCRIMINATION. (1) Term applied to a prejudice against or unequal treatment of workers in hiring, employment, pay or conditions of work, because of race, national origin, creed, color, sex, religious beliefs, age, union membership or activity, or any other characteristic not related to ability or job performance. (2) A more general meaning is “to distinguish between or among”.


DISPUTE. Disagreement between union and management. (LABOR DISPUTE).

DIVIDEND. Shareholder’s earnings from corporate profits based upon stock ownership (number of shares owned).

DIVISION OF LABOR. Differentiating of work into specialized jobs or positions.

DOUBLE BACK PAY. Penalty reimbursement to discharged employees. Specified by Labor Reform Act of 1977 (NLRA) as penalty for discharge of employees for protected activities during a union organization campaign.

DOUBLE DIPPING. Receiving retirement pension payments from two or more employers.

DOUBLE TIME. Premium rate for overtime work, amounting to twice the employee’s regular pay rate for each hour worked.

DOWNGRADING/DOWNGRADE. The lowering of a particular job in scope, authority, responsibility, degree of difficulty and skills required, with a possible reduction in wage or salary.

DOWNTIME. Time during which an operation is halted for such causes as: lack of material, machinery breakdown, improper tooling, power loss, etc.

DRAW. A designated amount against which expenses/wages may be charged and payment withdrawn.

DRAWING ACCOUNT. An account from which advances from commissions are paid.

DUAL PAY. A system of wage payment used by railroads under which employees are paid on a mileage or hourly basis. A standard mileage is defined as a basic day, usually eight hours, for the purpose of determining the daily rate. Wages are computed on the number of hours or miles, whichever yields the greater compensation to the employee.

DUAL UNIONISM. A charge (usually a punishable offense) leveled at a union member or officer who seeks or accepts membership or position in a rival union or otherwise attempts to undermine a union by helping its rival.

DUES. Refers to money collected from union members by a union as a cost of belonging to the union. The amount of union dues is established by the members or their elected representatives at the union’s convention.

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