Unit 5- assignment

docx

School

Columbia Southern University *

*We aren’t endorsed by this school

Course

1001

Subject

Economics

Date

Jan 9, 2024

Type

docx

Pages

4

Uploaded by UltraNarwhal2971

Report
What are the general wage concerns that management and employee representatives bring to the negotiating table? Why do workers try to negotiate wage employment guarantees and supplemental unemployment benefits? Wage Concerns Thank you for the assignment, Professor. I will provide my response to each question starting with the first question “What are the general wage concerns that management and employee representatives bring to the negotiating table?” Management is often concerned about the wage increase because employee compensation is often the largest investment that the organization makes. In addition, for companies in the private sector, management are concerned about the change in wages because it will affect product pricing and the company’s ability to compete in the market (Carrell & Heavrin, 2013). For organizations in the public sector, the increase in employees’ compensation can lead to budget deficits which will affect the timeliness and effectiveness of public services. That will result in the negative impacts on the quality of life for the residents and local businesses. The misconceptions I often hear from people is that management is concerned about increasing the employees’ wages because they are “too cheap” and they are worried their management salaries will be decreased. The management’s concerns about wages directly connect with the company’s health as a whole and the quality of life of the larger community. For the employees, wages and benefits are amongst the top concerns. While the union workers earn 11% more in wages than non-union workers (McNicholas et al, 2020), the unionized workers, especially those who are people of color, continue to experience a wage disparity between the workers and their managers. The cost-of-living adjustment (COLA) is amongst the most important factors in the wage concerns. The COLA allows employees to afford housing, services, and other essential expenses (Herrity, 2023). Let’s take the Bay Area where I live as an example. A two-bedroom apartment will cost renters anywhere from $2,500 to $5,000 a month. A one-bedroom apartment starts at $2,300. An single individual who makes minimum wage ($17.00 an hour) takes home about $2,100 a month cannot afford to rent in the Bay Area. The individual needs to work two jobs or do what most Bay Area renters do living with ̶ multiple roommates. Therefore, the employees’ concerns about wages and benefits are truly motivated by the needs to meet their basic essential needs such as housing, food, etc. Consistent Work Hours and The Rainy Days The second question is “Why do workers try to negotiate wage employment guarantees and supplemental unemployment benefits?” Wage employment guarantees ensures the employees’ work hours are consistent and supplemental unemployment benefits ensures laid-off employees are paid a certain percentage of their salaries when employed (Carrell & Heavrin, 2013). Workers try to negotiate for their wage employment guarantees because having consistent work hours will ensure they can afford the necessities such as housing, food, transportation, providing for their families, etc. Workers negotiate for supplemental unemployment benefits because of two reasons being the State unemployment benefits do not cover all the employees’ expenses and laid-off employees are faced with many challenges including emotional and
physical challenges applying for new jobs, starting a new life. Here is an example of how supplemental unemployment benefits work. An employee who makes $1,000 a week gets laid off. The State will pay them $650 a week in unemployment insurance. The company would contribute $350 a week (Better Team, n.d.) ensuring the laid-off employee is has enough money to cover their expenses while looking for a new job. The COVID-19 pandemic has shown us that employment is not guaranteed when there is an economic downturn. Therefore, supplemental unemployment benefits are critical to every worker. References Better Team (n.d.). What are supplemental unemployment benefits? https://bit.ly/43ltmwt Carrell, M. R., & Heavrin, C. (2013). Labor relations and collective bargaining: Private and public sectors (10 th ed.). Pearson Education (US). https://online.vitalsource.com/books/9780133468021 Herrity, J. (2023). Cost-of-living adjustment (COLA): Definition and how to use. https://www.indeed.com/career-advice/pay-salary/cost-of-living-adjustment#:~:text=The %20United%20States%20Social%20Security,third%20quarter%20of%20the %20year . McNicholas et al (2020). Why unions are good for workers https://www.epi.org/publication/why-unions-are-good-for-workers-especially-in-a-crisis- like-covid-19-12-policies-that-would-boost-worker-rights-safety-and-wages/ Management concerns are wage increase since it is their largest investment and cost factor on t
As in any other negotiation, management and employee representatives bring a variety of wage- related concerns to the table, including the amount of money being offered, the number of hours worked, the number of vacation days, and so on.. It's possible that a corporation or sector has its own set of worries. Workers may be anxious about job security while management is concerned about the expense of benefits, for example. It is in everyone's best interest for management and staff to come to a mutually beneficial arrangement. In any negotiation, both management and employees will want to come to an agreement that is fair and benefits both sides. Management will want to keep costs down, while employees will want to receive a fair wage for their work. Both sides will also want to consider the number of hours worked, the number of vacation days, and other factors that could affect their compensation. Management may also have specific concerns that are unique to the company or industry. For example, they may be concerned about the cost of benefits, while employees may be concerned about job security. Both management and employees will want to come to an agreement that is fair and benefits both sides. Both sides will need to compromise in order to reach an agreement that is acceptable to both parties. What are the general wage concerns that management and employee representatives bringto the negotiating table?Wage is the most common and mandatory issue brought to the negotiating table. Thereare a number of wage concerns that management and employee representatives bring to thenegotiating table.-Unions negotiate for higher average wages in order to keep pace with the inflation in the regionor to bring or to bring salaries and wages to a higher level as compared to other public entities.-Unions may also negotiate for higher wages if they feel their work needs a higher standard.-Unions negotiate about incremental wage increases in cases where an employee's seniorityneeds compensation.-Management discusses pay scales with salaries and wages increase that is to be awarded toemployees based on their individual performance.- Handling pattern bargaining by management; here unions strive to establish equal wages andbenefits from several unions and even employers who are in the same industry.- The compensation plan is also discussed; - Remuneration/compensation types of compensationare discussed including hourly rate or salary, signing bonus, profit sharing [especially whenemployees need to receive a share of the employer's profits as an addition to their normalwages], step increases, and benefits.Work is compensable and is something for which anemployee is entitled to be pai
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
-The ability of the employer or management to pay its employees, management's financialposition and its ability to change its wage rates is another issue brought to the bargaining table.-Overtime payment; management and employees representatives will negotiate about this issuebecause it is a requirement that employees receive pay that is equal to the overtime hoursworked.-Equal Pay/ pay equity issue; this is about employees receiving a lower salary than theircounterparts who performs the same job. One standard pay rate should be provided for each joband all workers who perform it; equal work for equal pay.-The issue about exempt employees; exempt employees are not subjected to the Federal FairLabor Standards Act's overtime pay and minimum wages provisions. These employees are notgranted the protections of the Federal Fair Labor Standards Act and are therefore not entitled toovertime pay.-The issue about nonexempt employees; nonexempt employees are subjected to the federal FairLabor Standards Act's overtime and minimum wages provisions hence must be paid theminimum wage and overtime pay for the time they work past forty hours per week.-The cost of living adjustment; especially when the cost of living has risen-The value added concept; where wages should be equal to the contribution of labor towards thefinal product.