Wage and Salaries Issues

Review Questions
1.What are the general wage concerns that management andemployee representatives bring to the negotiating table?
2.Why have profit-sharing plans replaced COLAs in somerecently negotiated agreements?
3.Why have unions and employers negotiated more wageconcessions in recent years?
4.How can wage surveys be effectively used in collective bargaining?
5.Why are labor and management negotiators likely to respondto consideration of the company’s ability to pay higher wages?
6.What are the pros and cons of two-tier pay systems?
7.Why must labor and management be able to determineaccurately the cost of wage proposals?
Answer preview

To employers, wages are part of production costs, which they try minimizing to increase profit margins. An organization’s ability to compete in the market and the pricing policy are significant determinants of wage variations by management (Arsov et al., 2018). Maintaining a competitive industry position by keeping competitive labor costs in production and successfully pricing their product within the industry is the management’s top aim. Union wages concerns are employees centered, and they call for fair pay for fair work done. First, proper treatment and honesty are prime expectations of every employee in an organization. In labor relations, economic benefits and wages are the core aim of collective bargaining. Secondly, the slogan “equal pay for equal work” is used by unions and management as a guide to follow and aimed to remind them employees expect to be maintained. As far as pay grades are fairly structured and evenly executed, workers usually accept differential pay based on internal wage levels and job classification.