WAGE DETERMINATION IN THE PUBLIC SECTOR INDUSTRY AND LABOR
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WAGE DETERMINATION IN THE PUBLIC SECTOR INDUSTRY AND LABOR
Chapter One: Introduction 1.1 Background of the Study
Every market has some commercial activity that involves the purchase and sale of products and services. The labour market is no exception; buyers are employers, and sellers are employees.
A market is defined by the conditions under which employers use labour services. Individuals in the labour market may be hired to undertake a certain task for a set length of time. More frequently, the word job refers to an ongoing relationship between the employer and the employee.
The wage issue is high on the agenda of collective bargaining meetings as a major priority item. It is also represented directly or indirectly in actions such as worker downsizing, salary reductions, and outsourcing by enterprises to lower-wage firms, regions, or nations.
It should be mentioned, however, that the pay issue requires careful thought if companies want to produce a highly qualified workforce and firms want to increase their employees’ performance while also encouraging their dedication to the company.
A fair and balanced salary structure is also required to boost worker morale, foster a positive organisational culture, and maintain good relations with labour unions.
The construction of a strong compensation management system is an important human resource management function that contributes to effective managerial practices and meeting the needs of all parties involved. It also serves as a catalyst for achieving a competitive economic edge in international trade.
The world is changing. This shift is affecting all systems and societies. Humans are the driving force behind this development. First and foremost, the evolution of humanity is fascinating.
The process of human development shapes the dynamics of social change. Associations, unions, and political parties must be the driving force behind the transformation. However, they encounter obstacles in this procedure. This process may force organisations and individuals to confront each other as adversaries.
Organisations and their employees represent the labour market. The labour market is an analysis of labour demand and supply. Ehrenberg (2003: 424) gives a nice explanation of labour market: “On the demand side, there are employers whose hiring decisions are influenced by conditions in the product, capital, and labour markets.”
On the supply side of the labour market, workers and potential workers make decisions about where to work.” Most people have pursued the objective of earning money through labour. Workers’ skills can also be considered assets because they can be rented out to companies for a fee.
It is critical to specify how much labour is utilised and at what cost. Labour unions play an important influence in influencing labour supply conditions and the labour market environment.
According to Segal (1964, p. 96), “people view unions as the major means by which working persons can improve their economic status within the concept of equity.”
Unionisation and human resource management are paired with employer-oriented measures recommended by consultants. Union policies, ideals of equity, and wage rates all have an impact on nonunion firms.
According to Ehrenberg (2003: 425), unions do not unilaterally establish pay; rather, collective agreements are bilateral. As a result, it is critical to analyse the unique aspects of union salaries and employment laws.
However, union power has been shifting. According to Sloane and Whitney (2004: 12), despite managerial hostility, unionism has demonstrated no strong inclination to recede.
However, it is true that organised labour has lost some of its membership in recent years, both in absolute and relative terms, owing mostly to the impact of new technology and the accompanying employment decrease, as well as changing market needs influencing manufacturing.
And, while some argue that the rapidly expanding white-collar sector will eventually become more receptive to collective bargaining, it is also true that union penetration in this area has fallen far short of its promise.
As the nature of the labour force changes around the world, collective bargaining and labour unions are here to stay, regardless of the issues that may arise.
If one party is unsure about the other’s major aims, it may feel compelled to investigate the connection. If the union’s reaction at the bargaining table did not put management’s suspicions to the test, the employer may have been tempted to bring the subject to an impasse.
Thus, everything that raises uncertainty regarding bargaining positions increases the likelihood of a stoppage during the negotiation stage. In collective bargaining, the expenses of a stalemate can be significant for both sides.
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