Union Role in Wage and Salary Administration Compensation Management Prepared by: Mr. Zaheed Husein Mohammad Al-Din, Sr. Lecturer, BBS Adapted from: Compensation, Ninth Edition (By: George T. Milkovich, Jerry M. Newman)

Topics for Discussion Impact of Trade Unions on Wage Determination Unions and Alternative Reward Systems Unions and The New Pension Scheme

Divergent Perspective Employer/Management Trade Union/Worker Ability to pay (balance sheet) Ability to live and work (Family Budget survey) Cost Effect Price Effect Wage costs, not wage levels Wage levels, not wage costs Unit labor costs How long to sweat it out for a loaf of bread Source of competitiveness: there fore, reduce/cut costs Source of livelihood: therefore, maximize wages/earnings and benefits

Unions and Alternative Reward Systems Lump Sum Awards Employee Stock Ownership Plans (ESOPs) Pay-for-Knowledge Plans Profit/Gain-sharing Plans Piece Rate

Unions and The New Pension Scheme Pension should be a third retirement benefit and not in lieu of contributory provident fund The scheme should be optional, but be extended to the unorganized sector Pension should be indexed to inflation There should be a pension fund and contributions to it must carry a minimum interest rate

End of Topic