2.Union Power:Unions can influence how pay plans are designed. Wages are typically a bargaining point with unions as are time off with pay, income security, cost-of-living adjustments and pensions. The Canada Labour Relations Actas well as provincial labour relations acts oversee employer practices and ensure that employees are treated according to the laws. Unions are able to use their power to obtain wage rates out of proportion to the job's relative worth. Sometimes the union controls most or all of a particular skill, such as carpentry or plumbing and this enables the union to actually raise the prevailing rates for those jobs. Unions often fear that any system used to evaluate the worth of a job can become a tool for management malpractice. The best way to get union cooperation is to have the unions participate in the assigning of rates for pay.3.Productivity:Companies cannot pay workers more than they contribute to the economicwell-being of the organization. Sometimes companies have a policy of paying a premium over the current wage scale to minimize turnover or to recruit the best workers. Some companies have automatic cost-of-living clauses that give workers a raise when the cost of living increases.4.Wage & Salary Policies:Many organizations have policies that cause wages and salaries to be adjusted such as giving non-unionized workers the same pay as the unionized workers or paying higher than minimum.5.Government Constraints:There are various laws governing wages:Minimum wages- each province has its own minimum wage legislation Government Contracts- contracts with the Government of Canadaare governed by the Fair Wage and Hours of Labour Act Staff Records- every employer under federal government jurisdiction has to submit wage and salary information including hours worked, holidays, etc.Pay EquityThe Canadian Human Rights Act prohibits companies from paying women less than men if their jobs involve equal skills, effort, responsibilities and conditions.
HN1240 Human Resource Management IIUnit 2: Compensation Management7Equal pay for work of equal valueis the principle of equal pay for men and women in jobs with comparable content; based on criteria of skill, effort, responsibility, and working conditions.Pay Equityis the policy to eliminate the gap between the incomes of men and women, ensuring that salary ranges correspond to the value of the work performed.A human resources manager has to make sure that the company's pay system is in line with the province's or federal government's legislation. The following measures are suggested:Review the organization's human resource policies, procedures and practices with the objective of determining relevance and consistency of application.
- Summer '19
- Human Resource Management, Employment compensation