Question

You own a business in a highly competitive wage market and your workers are not unionized. You are negotiating a new wage contract. What factors must you consider to get a fair contract?

Answer 1

Factors which the business must consider to get a fair contract are:

(1) Salary of the employees - The employees salary must adjust to the inflation rate every year so that their real income does not fall.

(2) Hours of work - i should ensure that the employees are paid according to their hours of work and are fairly compensated if they are made to work overtime.

(3) No of leaves - The employees should get sufficient leaves when they are sick, have an emergency back home or want to rejuvenate themselves by going on a vacation.

(4) Safety Policies - If I am owning a business which makes people to work in factories which can be dangerous, then I should ensure there is enough job safety policies taken.

(5) Work and life balance - I should ensure that the employees are not made to work so much everyday that they cannot enjoy their personal life back home. Everyone should be made to work at a reasonable amount of time in office.

(6) Other benefits - The employees should be given other benefits such as health insurance, accident insurance, maternity or paternity benefits, etc.

These are the factors I must consider when my business is in a highly competitive wage market and my workers are not unionized.