In 2013 we at Austin's Yellow Bike Project started a staff program, mostly because our big new-at-the-time shop seemed underutilized. It seemed fine until the last few years. The staff feels there is a lack in accountability from the board, which is a loosely organized group of volunteers. So when the staff has problems, they seem not to get solved and people quit. We're down to 2 employees (one of whom is part time) from a peak of 7 a year ago. Almost all staff were board members before their hire date, so the arrangement has had the added detriment of gutting the board of (often its most) capable members.
To answer your questions:
We pay them hourly, and all the same hourly (which was their choice). But that may be about to change as there's talk of re-organizing from a collective to a manager-and-staff. They set the bike prices.
Thomas Butler
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Austin's Yellow Bike Project