Journal of Organizational Behavior

This field study examined the operation and impact of the Scanlon Plan at a large manufacturing facility. An interrupted time‐series research design, augmented by extensive qualitative data analysis was used to analyse the productivity and employment experience over a nine‐year period. The plan resulted in modest increases in productivity and stable employment, while improving the overall union‐management relationship. Through the Scanlon structure for employee involvement, over 5000 suggestions have been made. Moderate and consistent productivity sharing bonuses were paid.