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Fixed vs varying compensation

Just looking for a few paragraphs to get a discussion rolling.

What arguments would you use to defend a fixed pay system such as union or government scale that had no performance measures? In contrast, what arguments would you use to persuade an organization to vary its pay rates based on individual job performance?

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Fixed compensation and rewards help to simplify the compensation of workers. It also helps define the acceptable behaviors and expectations of the workers. Everyone is bound by the same rules, and as long as the people hired are talented and the best for the job, each is equal in terms of when and how they can be fired. Under this program, days off are part of the package and people who are taking more than the allowed are eligible for firing. There is no need to decide on how much work they produce, how much effort others have to put in to cover their shifts, or if they are competent. The template of expectations is simpler and based on active participation of the work.

For example, a company has ...

Solution Summary

A discussion on the fixed compensation method vs the varying performance method of compensation.