In welcoming Mr Retief's paper, the writer stated that where most papers to the Institution dealt with the purely technical and design aspects of engineering works, very few contributions had come forward dealing with that equally important sector-the effective use of labour. In the history and development of bonus system in the S.A. Railway Administration, the Author had given an honest record of failures and achievements. The installation of these systems could only be entrusted to experienced people as the work was intricate and required delicate handling. Unless one knew the pitfalls a great deal of harm could be done. It was most difficult to retrieve mistakes in the field of human relations.