Ch 12 The Role of Gov. and Unions in Comp. *Done

Question 1

What is government’s role in compensation?

Answer 1

Key stakeholder

• make sure pay is fair
• make sure safety nets are sufficient
• protect employees from exploitation
• Protect specific groups to restrict quality and quantity of labour supply
• Effect demand for labour through its purchases and public policy decisions.

Question 2

What are the key elements of the Employment Standards Acts/Canadian Labour Code?

Answer 2

1. min wage
2. paid vacation
3. paid holidays
4. stats
5. averaging agreements
6. standard hours of work and overtime pay
7. pay on termination of employment
8. min age of employment
9. equal pay for work of equal value.

Question 3

What is pay equity?

Answer 3

Issues relating to the gender wage gap: the amount by which the avg pay of female workers is less than the average pay for male workers.

Question 4

What are the reasons for gender wage gap?

Answer 4

• Presence of discrimination
• Differences in occupational attainment
• differences in number of hrs worked
• differences in industries and firms
• differences in union membership

Question 5

What is pay equity legislation?

Answer 5

intended to address the portion of the wage gap assumed to be due to discrimination.

Question 6

What are the 4 job evaluation factors for pay equity?

Answer 6

1. Skill
2. Effort
3. Responsibility
4. Working Conditions

Question 7

What are the ways to compare male and female job classes?

Answer 7

1. Job-to-job method: Compare female to male job classes by pay.
2. Proportional value/wage line method: use regression line from male job classes when setting pay for female job classes.
3. Proxy comparison method: female classes compared to female classes in other orgs which have achieved pay equity.

Question 8

In what ways to unions impact wage determination

Answer 8

• general wage and benefit levels
• structure of wage packages
• spil-over
• wage and salary policies and practices in unionized firms

Question 9

How do unions impact general wage levels?

Answer 9

• union workers make 10% more than non-union workers
• Size of gap varies from year to year
• Union benefits are 20-30% higher

Question 10

How do unions impact the structure of wage packages?

Answer 10

• Division of wages and benefits

- Two tier wage plans (lower wages for lower seniority)

Question 11

What is the Union spill-over effect?

Answer 11

employers who seek to avoid unionization by offering wages, benefits, and conditions that rival unionized firms.

Question 12

How do unions effect pay policies and practices?

Answer 12

Through collective agreements:

• basis of pay (reg/OT)
• occupation (wage differentials)
• experience/merit differentials
• vacation and holidays
• wage adjustment provisions

Question 13

What are some alternative rewards systems included in collective agreements?

Answer 13

• lump sum
• piece rate
• gain sharing
• profit sharing
• pay-for-knowledge.