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This system worked great in the United States over the years, but it proved problematic in other countries, for various reasons.
In countries such as Brazil and Germany, the incentive system could not work, mainly for the legal reasons; in Brazil any bonus paid for two consecutive years became a legal entitlement and in Germany piecework was illegal altogether. Other factors that have made its operations less successful (to say at least) in those countries were mainly cultural, as Brazilians and Germans proved to value different priorities, than for example, Ohioans. Forces such as union laws, low productivity, poor relationships with local businesses, local and inexperienced management, all led to a situation where Lincoln Electric was, for the first time in its over 100 year long history, losing money...
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