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Ô The basic moral obligation that the employer has
towards the employees, according to the rational view
of the firm , is to provide them with the compensation
they have freely and knowingly agreed to receive in
exchange for their services. There are two main issues
related to this obligation:
Ô Fairness of wages
Ô Fairness of employee working conditions .
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Ô From the employeeǯs point of view, wages are the only
means for satisfying the basic economic needs of the
worker and the workerǯs family.
Ô From the employerǯs point of view, wages are a cost of
production that must be kept down lest the product be
priced out of the market. Therefore every employer
faces the dilemma of setting fair wages.
Ô How can a fair balance be struck between the
employerǯs interests in minimising costs and the
workerǯs interest in providing a decent living for
themselves and their families?
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Ô Wages in developing countries are said to be too low
relative to the wages of employees in the more
advanced, developed nations where these companies
are headquartered.
Ô Wages in developing countries are too low relative to
what the company can afford or relative to the
revenues the company makes on the products
assembled by workers in developing nations.
Ô Wages in developing nations are too low relative to
what a family needs to live. The term Dzliving wagedz is
sometimes used to indicate what a wage earner would
need to earn to support a family of four.
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Ô ?ocal wages
Ô Firmǯs ability to pay
Ô Burdens of the job
Ô Minimum wage laws
Ô Fair relations to other salaries in the firm
Ô Fair wage negotiations
Ô ?ocal living costs.
WORKING ONDITIONS:
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