Abstract
This case study deals with Leisure Textiles, a knitwear manufacturer in Lahore, Pakistan. It describes the general practices followed in the sewing industry with reference to the compensation systems followed. It also deals with the roles of key characters in the sewing industry. Leisure Textiles had followed the predominant system of ‘piece rate’ for compensating its sewing workforce. However, in 2000 the company's CEO implemented the salary-based system in one of the sewing units on a test case basis. The case discusses the efforts made at implementing a salary-based system in place of the piece rate system and the problems associated with these efforts.