In the UK today 22% of the entire workforce are low paid with the minimum wage for over 21’s being only £6.50 per hour (Lloyd & Payne,2012). Consequently mainstream political parties aim to promote in today’s culture the idea that people who work hard can progress to better jobs (Lloyd & Payne,2012). Moreover, there are barriers which prevent the prospects for improving pay at the lower end of the labour market. Thus this essay will examine and evaluate the prospects for improving pay and recognizing the barriers which hold back people from moving up in the labour market. The first part will assess internal labour markets and how affective they are at improving pay, the second part will discuss trade unions and how affective they are at …show more content…
Nevertheless, there has been evidence to represent a breakdown in ILMs, reducing prospects for employees at the lower end to progress internally. Grimshaw et al (2002) illustrates how possibilities for ‘moving up’ in the labour market have been eroded throughout the 1980’s and 1990’s due to de-layering of employees. Delayering involves removing levels of the hierarchy from the organisational structure (Riley,2014), this meant a transformation of the internal job ladder appeared where job positions within the middle of the hierarchy were usually removed (Grimshaw et al,2002). This resulted in some employees, usually at the bottom of the hierarchy losing their jobs altogether. Nevertheless the main effect of delayering is the rupture of ‘natural skills progression’ which means it is harder to move from lower positions to managerial positions due to a bigger gap between positions (Grimeshaw et al,2002). The breakdown of ILM also causes deskilling of workers which came from the theory of Fordism, this theory says businesses should aim to achieve higher productivity by standardizing the output and breaking work into small deskilled tasks. The concept of deskilling was put forward by Braverman in the 1970s, he said that ‘there is an inevitable tendency towards deskilling of work as capitalists search for profits in the competitive market’ (Noon&Blyton,2013). Thus this results in lowering prospects for improving pay at the lower end as employers
The government used monetary policy over demand management, and concentrated on the control of the rate of interest in an attempt to stop low levels of unemployment causing inflation. The government decided to use collective bargaining as a means of setting rates of pay for the first time, the government no longer required Trade Unionists as negotiators of pay, because private negotiating bodies were now used. It was now assumed that in the present economic climate, in accordance with interest rates and government objectives that the price which was set would be reasonable, and if not then the government assumed that the employers knew better, this being one indication of Mrs Thatchers non-tolerance towards Trade Unions, also shown by Mrs Thatcher passing control of pay structures to private bodies and employers. This attitude is very different to the present day ‘New’ Labour government, who sees government interaction in the wage structure as being very important. For example, the introduction of the National Minimum Wage.
In addition, an expanding conversation about how to end working poverty through decent jobs points out that is to not only important to make minimum wage, but an adequate living wage. For instance, the Raise The Minimum Wage Campain noted, “The minimum wage should be set 10% above the poverty line, using the Low Income Measure”. Unionization employees that get paid above minimum wage feel more comfortable and satisfied with their job, which indicates that they are less likely to resign from their duties. With skilled workers in greater demand, their job opportunities and their
In our modern society one of the seemingly least controversial topics is the minimum wage. The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Throughout recent years, politicians have made promises to raise the minimum wage to help low-income earners live a better life. Contrary to popular belief, raising the minimum wage actually hurts low-income earners and low-skilled workers. We must first define a low-skilled worker. A low-skilled worker does not mean that particular employee is not intelligent; it simply refers to a worker who cannot perform as efficiently due to low educational attainment. Through this paper, I hope to inform you, Mr. Randall L. Stevenson, and our company, AT&T, about the disadvantages of raising the minimum wage.
By increasing the starting wage of employees, and the amount of money they receive from their employers, the low wage working class citizen should be able to better pay off their bills and live out of poverty. “Alan B. Krueger, the minimum-wage expert who formerly headed Mr. Obama 's Council of Economic Advisers, has written: "A minimum wage set as high as $12 an hour will do more good than harm for low-wage workers, but a $15-an-hour national minimum wage would put us in uncharted waters, and risk undesirable and unintended consequences”’ (“$15 Is the Wrong” A.14). This article shows us that increasing the starting pay does have its benefits, but also can have harmful effects on surrounding people. What are some of the problems that come with raising the pay of employees?
In America and countries around the world, we face a universal problem: poverty. Among many options, a widespread solution for this problem is the implementation of a minimum wage. Aside from the US, countries such as Luxembourg, Belgium, and Ireland all have set minimum wages(Petroff). Minimum wage was first established during the Great Depression when President John F.Kennedy was striving to help the economy and lift many Americans out of poverty(Day). At the time, the minimum wage was $0.25 an hour, which corresponds to about $3.98 an hour in today’s money(Minimum Wage). Since then, the minimum wage has steadily increased to today’s $7.25 an hour. With the fluctuating economy, people’s views and opinions on the subject have swayed every which way throughout the years, with minimum wages rising and falling over different cities, states and countries. The imminent truth is that people simply need more money, with around 60% of the population already in poverty (Dunkelberg). Often times, people are very liberal with this issue and suggest that America raise the minimum wage drastically to $15.00 an hour. The face of the proposition is a pretty one, suggesting that everyone gets more money, so how could one say no? While increasing the minimum wage has had some small benefits, especially from an employee’s perspective, the success of this idea proves to be a facade on the face of the future
A standout amongst the most much of the time made inquiries in our nation is by all accounts: Should the lowest pay permitted by law be raised or would it be a good idea for it to be brought down or wiped out inside and out? Raising the lowest pay permitted by law would lift unique individuals out of destitution as well as lift the spirits of these persevering people by remunerating them decently, subsequently reinforcing organizations and the economy general. The lowest pay permitted by law would decidedly influence understudies and society a considerable measure.
Accompanied by an already ridiculing tone, the author, Karen Matthews quickly asserts her main contention with the title ‘Penalty rates cut to hit workers hard, while rorting MPs have snout in trough’ in an article published on the 4th of March, 2017. Matthews also includes a political cartoon entailing hypocrisy and inequality between two figures who are affected by the issue at hand. Throughout the article, the writer argues that the reduction in penalty rates is harmful, and incorporates the cartoon to support the same contention in a simpler and more visual form.
Minimum wage always seems like a topic of conversation in the media. As of now, the current set minimum wage has been claimed as not being a livable wage, therefore there has been an outcry to raise it. However, we cannot turn a blind eye to what that may do to our economy. While raising the minimum wage can have a beneficial effects of providing a livable wage, reducing the need for dependent of poverty-focused government resources, and may even reduce crime, there can be many hidden problems that crop up through the woodwork that can undermine this improvement.
The debate whether the government should raise the minimum wage has been challenged for many years and it is crucial to deliberate the ethical facets of such a conundrum. Research and economic texts have reported over many years that it is perhaps very difficult to
For instance, by 2012 the median salary had only increased by a mere 7 percent sinc3 1973. Decent paying jobs are continually being moved overseas and due to an increasing need for automation, available jobs have declined at a rapid speed since lesser manpower is required in most fields. Those who have lost their jobs as a result of these changes, are often unsuccessful in finding suitable work, much less one that compares to their previous salary. Americans who have managed to remain employed, are not necessarily out of the water either. Company owners and leaders are becoming richer while the poor gets poorer; frequently underpaying their employees and keeping a larger amount of profit for themselves. With such a competitive market for much needed work, employees are often faced with the decision to accept their meager salaries or try to find better work elsewhere. Because other well-paying jobs are harder to find, American’s are becoming increasingly willing to accept the mediocre pay offered to them, even if they know that they are being underpaid
Claiming that the problem “plaguing” Americans is a lack of jobs rather than a low minimum wage, they display an understanding of the broader issue at hand--poverty--which further strengthens the piece by presenting a clear rationale and establishing credibility through their deeper understanding. Acknowledging the “political attractiveness” of giving people higher salaries highlights a shallowness to the reasoning behind the opposing side, as
For the last couple decades, the minimum wage has been on going topic that the economists and the policy makers has been debating on. Indeed, It is still an open issue and the policy makers still debating on increasing it. The first Country that passed the minimum wage policy was New Zealand in 1984, and a lot country followed. President Roosevelt passed the first minimum wage in 1938, the minimum wage was 0.25 when the Roosevelt passed, and it has been increased as the living expense went up. The minimum wage is measured on living expense and the economic growth. As today's living expense, The minimum wages should be increased.
Throughout history, workers have been treated unfairly and not compensated for their contributions in the workforce. Additionally, many have not been recognized for their efforts. However, to obtain a better quality of life, workers must earn higher wages and wait at least 7 – 10 years for policies to be updated; depending on the policy (DOL, 2016). Apparently, policy makers have different views on wage compensation, which makes it difficult for low –income families to thrive
Workers have been demanding to increase minimum wages in different parts of Canada. Several Workers’ unions have accelerated their demands and demonstrated with full force on the roads of Ottawa and Ontario in last few months. Since this issue is directly related to masses, political parties have also jumped in the issue and gave it a new dimension by fueling it. Mr. Mulcair, a senior leader from National Democratic Party vows to increase minimum wages by fifteen dollar per hour. Mulcair says, “We think it’s important to send a signal,” he adds “It is a good idea economically to put money in people’s pockets” (McParland).
Critique: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania