An analysis of the economic implications of eliminating the wage gap within engineering companies

Abstract :

Investigates four companies in the engineering sector in order to identify the extent of any discrimination in pay, and to evaluate the economic implications of eliminating the remaining wage gap in each of the companies analysed. In order to obtain a reasonably representative sample, companies with different cost structure characteristics and market environments were selected for analysis. All the wage data of hourly paid employees were collected and analysed within the framework of a unified wage structure. The feasibility of coping with the resulting increase in labour costs was assessed and alternative strategies evaluated. The theoretical wage structure was developed using the guidelines provided by a job evaluation method and taking the top wage rate negotiated within the engineering industry in 1981 as a starting point of reference. The results of the wage data analysis indicate that anomalies within the current wage structures are not directly related to race or sex but rather the structure of job grades within the industry. It is indicated that it would not be economically viable for most companies to eliminate the wage anomalies in their current wage structures. Intermediate strategies will therefore have to be adopted to reduce the size of labour cost increases.



Author Compagnoni M
Date Accessioned 2016-09-22T11:18:52Z
Date Available 2016-09-22T11:18:52Z
Date Created 1981
Identifier URL 1983
Language English
Subject Business administration / Business leadership
Subject 2 Business administration / Business leadership
Alternative Title
Degree Type Masters degree
Degree Description  MBA