Question

Ethics/Conduct of Business - Employment Rights

What should workers’ wages be compared to in order to determine if they are just?

Answer 1

With respect to the just compensation, workers’ wages should be either at par or above the benchmark wage of the particular industry. Further, the wages of the workers should be aligned with the company’s profitability and some part of the profits in the form of bonus, dividend or stock options, should be given to the workers. Besides, a just wage should have different components to take care of health needs of the workers and their dependents, leaves and other amenities that are either prescribed in labor laws or the best practices being followed by the top organization. It helps the organization to become ethical and responsible to deliver different employment rights to the workers.
Hence, workers’ wage should be compared, with the industry benchmark compensation, degree of linkage with the company's profits, incentives and other fringe benefits issued to the employees to identify the level of just in the wages given to the workers.