1. 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)

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

3. 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

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

5. 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

6. End of Topic