Gravity Payments Have Increased Minimum Salary

The AIRC tried facilitated the dispute through conciliation, i.e. by conducting meetings with both employees and management in attendance. On the 8th May, the dispute was resolved with employees obtaining a 6% across-the-board pay rise (although 1/3 employees voted to reject this deal as well).

Henderson printing is a mid-level company. The company operates some compensation models for its personnel. Through these models, the employees receive rewards for the labour they render to the enterprise. Henderson printing pays its employees by giving them regular salaries for their services. These are direct payments for the work they do in this company. Secondly, the employees are given pay raises even though this depends on the employee’s initiative to ask for a pay rise from the owner (Davis, 2013). Lastly, the employees are also accorded some merit bonuses every Christmas time. The merit bonuses are based on their contribution to

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Unions will justify that if the company is doing well they can afford to compensate employees by sharing the profits since it was obtained by the greater productivity achieved because of their efforts. However, management will prefer to invest the profits within the company as capital. If the company is going through a hardship the union can still demand higher wages and the company can freeze wages.

With the mass production of low wage jobs, businesses have the ability hire their lackeys by the dozen. Corporations thrive on the cheap availability of their employees and never feel compelled to increase pay allotments, simply because they know new, more desperate applicants will be coming through their doors to replace the previous groups. For employers, low wage jobs are perfect; employment is high, and paychecks are low?great for overall profit of business. However, for employees, the situation is much

Employees are asked to work long hours and take on more duties, yet pay continues to decrease. Many employees opt to replace established employees with new workers, in an effort to save money, and this is only one way in which a person may be penalized for doing nothing wrong.

The action of raising the federal minimum wage has been cast as a necessary change for the United States, and would result in ensuring that America’s workers are able to receive a reasonable living.Though the controversial issue has turned more complex, with many implications beyond just those who bag groceries, flip burgers, and clean offices. The issue is believed to have various pros and cons, and consequently sparking the ongoing debate on to, or to not change to wage.

(3) What are some potential negative effects of the employees’ raising questions regarding rates of pay and pay equity in your department?

For the purpose of this assignment, I watched the film Locked Out by Joan Sekler. The film was about unionized miners in Boron California, who had to negotiate their contracts with their employer Rio Tinto. Rio Tinto is the 2nd largest mining company in the united states and employs over 575 workers. In 2009, Rio Tinto told their employees they are throwing out their contracts, every single one, all the agreements as well as all the past practices. The employees were facing cuts in their pay, their pensions, and their benefits.

Having buy-in from key stakeholders is crucial for the success of an incentive pay system. For example, if top management does not support such a program, lower-level managers will place little importance on effectively administering the program. Hence, a lack of top management support often leads to a lack of accountability. (Gordon, Kaswin)

The salary structure is inconsistent with people carrying out identical jobs having pay differences of up to £3,000 pa. This may cause friction within the team. Even when the company promotes an incentive bonus scheme for the production staff, the targets have not been met. And so the bonuses have never been paid. We do not know from the information given whether the targets are unrealistic or the workers do not see the scheme as being worthwhile. The production workers seem to be on a different path to the company’s.

The employee’s morale is low, they feel undervalued and unappreciated. With inflation rates and lack of raises their take home pay is less than before and the employee’s perception is that the company is doing well. During some tough years before, the employees that remained had pulled together and working harder to help keep the company open, they now feel that since business is good, they have not been appreciated or recognized for their commitment. They are concerned about their benefits plan and pension changes that may be happening.

The option to do nothing would benefit Gravity Payments because the company would not incur a massive increase in wage expenses, making it a good option for profit maximization. Secondly, the lawsuit filed by Lucas Price, Dan’s older brother, would not happen, which would not only increase Dan’s happiness but also reduce bad press facing the company. Thirdly, Gravity Payments would retain its two most important employees who left directly because of the minimum wage decision as they believed that it was unfair to the more valuable workers. A disadvantage of this option is that Price’s moral concerns about socioeconomic inequality would be completely ignored. Another disadvantage is that Gravity Payments would miss out on the massive, positive, media coverage that resulted because of the wage increase, leaving its brand image the same as before. Lastly, both employee motivation and satisfaction would remain unchanged, and this is an issue because the lowest and average salary at the firm is $34,000 and $48,000 respectively, which

Dan Price as the founder of Gravity Payments, who took a US$930,000 pay cut in order to bring up the minimum wage of his company in America. In doing so, out of his 120 employees, 70 will be getting a pay raise and 30 will get double their current income. For Price, this means reducing his US$1 million annual salary to US$70,000. He is hoping to forward more income equality to his workforce by this move. The reason for this movement is that Dan Price has been inspired from a Princeton study, who reaches a conclusion that “the perfect salary for happiness is about US$75,000.” (Levy, 2015) From an interview with times magazine, Price explains how once you know that it’s the right thing to do and that you will definitely get more out of it than harm. He quoted from the study: “The dollars that you’re making underneath that amount are causing harm to your well-being” (Torabi, 2015) It is with that Dan Price understood how imperative it is that when you have the authority and ability to allow your employees to live life to their fullest, their potential becomes several folds more.

Lastly, company may showed the sign of losing trust of employees. According to worker union news, employees in blue scope requiring higher pay eventually go for a strike.