WAGE POLICY
Introduction
Minimum wage policy was mainly implemented or enacted purposely to aid in increasing the amount of the wages which employees in various workplaces used to acquire or to be paid. Wage Policy refers to the different principles which are used as guidelines to aid in determining the wage structure of the employees. France is among the countries experiencing minimum wage policy. Despite the presence of minimum wage policy in France, the country’s Fair Work Commission is under pressure or threat from the employees or workers to increase the minimum wage amount. Besides, in France, most of the compensation to the employees is usually done through rewarding them hence motivating those to carry out the task they are assigned well (Fernandez-Macias &Vacas-Soriano, 2016). The minimum wage policy in France has remained fixed at 1,539.4 euros per month, which is equivalent to 18,473 euros per year. The Minimum Wage in France has raised 18.2 euros per month from the previous year, 1.2%. Therefore minimum wage salary refers to the smallest or the minimal amount of repayment or payment that the employees or workers in various workstations need to be paid for the duties or tasks they accomplish within a particular period. Once the employer and the employees agree on the amount of money to be paid for compensation, this agreement is usually kept, thus being unable to alter it through the contract they had agreed. Don't use plagiarised sources.Get your custom essay just from $11/page
Literature Review
There various laws that enable the employees to be compensated for the task or duties the accomplish within a specific period were first implemented or enacted in New Zealand. Therefore the presence of these laws facilitated or initiated the repayment of the employees hence enabling them to carry out various tasks well since they will be compensated for having completed these tasks (Ahern, 2020). Minimum wage policy has excellent influence on the peoples’ wages or salaries since they were mainly determined or enforced by the government or trade unions which consisted of groups of the various employees who negotiated with the employers in various business organizations or workstations purposely to protect the interest of the employees hence enhancing fair treatment of the employees. The enactment of these laws was mainly aimed at conversing various industries within the world, which used to underpay their employees. Some of the employees in different organizations experienced underpayment despite a tremendous amount of work or task they did. Therefore this initiated the employees to form trade unions, which comprised groups of the employees to aid in the protection of the interests. Similar motives or results were achieved with the introduction of these laws in both Australia and New Zealand, whereby they aimed at covering the employees from rogue employees as well as underpayment. After the enactment of these laws succeeded in Australia and New Zealand, it, therefore, spread to the other parts of the world.
Findings/Results
However, I came to realize that before the minimum wage policy was implemented, most employees in various countries experienced high instances of underpayment. Besides from the above discussion, I realized that most of the individuals who are weak or used to acquire a low amount of wages benefited more when wage policy was enacted or implemented. This is simply because such individuals could even be compensated or repaid despite the little amount of the task they carry out. This was beneficial to such people since it enabled them to improve their living standards. The presence of the minimum Wage in France initiated support to the people or employees who used to be paid low salaries in their countries (Lee, 2020). The implementation of the enactment of the minimum wage policy in France has been facilitated or initiated by the presence of stable economies; hence there are adequate funds to repay or compensate the employees who are lowly paid.
Methodology
Various methods are used in determining minimum wage policy. These methods or factors include the’ poverty threshold, prevailing wage rates as determined by the Labor Force Survey and the various economic indicators such as inflation, employment figures, which ensures that there is better workers or employees protection. Following the poverty threshold, there is the likelihood of minimum wage policy to be enacted or implemented on various business organizations in which most of the employees are reduced due to the underpayments (Lee, 2020). Therefore poverty threshold is used as among the better methods which are used in determining the places or organization needs minimum wage policy since it facilitates the various trade unions or government to quickly identify the employees who are profoundly affected by underpayment hence facilitating the implementation or enactment of minimum wage policy in such organization, therefore, improving salaries or wages of workers.
Discussion
There are various countries within the world which have been experiencing minimum wage policy. France being among the countries undergoing minimum wage policy enhances its employees to be treated somewhat as well as an increasing amount of income since the enactment of the minimum wage policy aids in the fair treatment of the employees which discouraged the underpayment despite a large amount of task they carry out. The increase in the standards of living has dramatically inhibited the establishment or enactment of the minimum wage policy. Due to increased levels of living standards, employees or the workers will be intending to acquire more capital as repayment or compensation for the various tasks they accomplish. Therefore this will discourage different countries from the desire to enact minimum wage policy due to the absence of adequate capital to compensate the employees for them to sustain their high standards of living. The government determines the minimum Wage in various countries. This implies that only the government is involved in setting many laws and regulations on how the employers should enhance fair treatment of the employees by compensating them for the jobs or tasks they accomplish (Ahmat et al, 2019). The government usually imposes minimum wage policy, especially in cases whereby the labor market is in equilibrium, which implies that the usages are currently in the market rate. Also, minimum wage policy is determined by the trade unions in various countries. Trade unions which comprise of the group of workers or employees, which usually combines purposely to protect their interests, negotiate with the employers to enable that all the employees are paid high wages. These trade unions generally aid in increasing the salaries of the employees mainly through restricting the supply of labor. I have government sources in evaluating various ways how government minimum wage policy.
Diagram showing a minimum wage policy above the equilibrium
From this graph, it is evidenced that the absence of national minimum Wage (NMW) above the equilibrium wage, a fall in demand for labor (Q1 TO Q2), and this implies that there will be an excess supply of energy (Q3-Q1)
Minimum Wage is imposed by the government purposely to control prices. The purpose of the price control is simply to indicate the minimum amount which needs to be paid for absolute good and services. From this discussion, it is evident that minimum wage laws have both advantages and disadvantages. However, it is one way of ensuring that employees are treated fairly and at the same time, avoiding unfair remuneration in the business world. However, the economic aspects of inflation and the rising cost of living are making it hard for companies to accommodate such higher expenses (Aher, 2020). As a result, cases of unemployment may be on the rise, taking into account technological innovations that render human labor ineffective.
Pros and Cons of Minimum Wage Policy
Minimum wage policy establishment or enactment prohibited employees who are unproductive from entering into the employment marketplace, which sequentially leads to underemployment. Besides, the passage of the minimum wage policy was beneficial since it aided in preventing employers in various workstations against abusing recruited employees. The enactment of the minimum wage policy can be advantageous for foreign workers. This implies that most of the employees or people who usually come from the countries which have low wages to those with high salaries are exceedingly susceptible except they are dwindling or secured by powerful legal minimum wage machine (Ahmat et al, 2019).
France has defined minimum wage for their labor market as the division of the labor market following the principle of the occupation, geographical as well as the industry. The unemployment rate in France increased over the last fifteen years. This is common to the individuals who are low skilled hence being unable to carry out various tasks. The French labor market is characterized by two salient features which differentiate it from the labor markets of the United States and the United Kingdom. First, minimum wage charge is much larger relative to the average Wage hence initiating employers who have recruited low skilled workers labors to turn to more capital or skill-intensive technologies. Secondly, in retort to increased cases of unemployment in the preceding or former two eras, France has established or created a solid well-being state purposely to upkeep unemployed individuals.
Therefore there are various effects of implementing minimum wage policy. According to the industry, which is among the segment in the labor market, multiple forces have raised with minimum wage policy establishment (Buszkiewicz et al, 2019). For instance, the minimum payment s are set in such a way that older people acquire or attain more amount of wages as compared to younger people. Also, the employees are compensated or repaid for the tasks they accomplish within a specified period based on their experience and academic qualifications. Therefore employees who will be assigned various tasks within the firm once minimum wage policy will be repaid or compensated more wages compared to the people who will be assigned multiple tasks later after minimum wage policy has been established. This is caused by differences in the experience among the employees hence the people who will be having stayed within the firm for a long time will be repaid or compensated more wages (Fernandez-Macias &Vacas-Soriano, 2016).
Also, academic qualifications are determinant in compensating the employees for the various tasks they carry out. Therefore this implies that the employees with more skills in carrying out multiple jobs will be paid more wages than the other employees with minimal academic qualifications. This will negatively affect the employees with little skills since they will be repaid low wages due to the absence of the various skills needed within the firm to carry out tasks. Furthermore, there are also effects which are initiated or facilitated by the minimum wage policy establishment following the occupation, which is among the various segment of the labor market. Most the people have different rules (Otten et al, 2017). This indicates that the number of salaries that these people acquire or attain is directly proportional to their occupations. Employees with more significant professions usually receive high wages compared to the employees receiving low payments. This indicates that the workers receiving high salaries will be highly motivated or compensated as compared to the employees receiving low wages. Therefore the implementation of the minimum wage policy will negatively affect the employees receiving low payments.
Minimum Wage has affected people both negatively and positively. Employees in more significant occupation hence receiving high salaries benefit more from the establishment of wage policy than employees with meager wages. Therefore people receiving high salaries will be positively exaggerated after the enactment of wage policy due to the high wages they will receive. Whereas employees receiving low payments will be negatively exaggerated after the establishment of wage policy. Employees with long experience in a particular business organization will be positively sensational, having established minimum wage policy. In contrast, those with fewer skills in carrying out various tasks due to a lack of experience will be negatively exaggerated after the development of minimum wage policy (Haw, 2019).
Therefore I am in favor of minimum wage policy discussed above since this policy was established mainly to alleviate or soothe the post-depression budget as well as to safeguarding employees in work power. There is a need to protect the workers or the employees in the various workstations since they had faced severe challenges due to the absence of the compensation for the tasks they carry out well as well as low wages or payments.
Wage policy enactment raised various arguments among different people in textbooks, “Mark P Taylor” and “other economic books. Numerous discussions were raised by the people in the book “Mark P Taylor” in that they enactment of the minimum wage policy would initiate high chances of unemployment among the unskilled and the young workers. This has inhibited various countries from imposing minimum wage policy due to the belief that its enactment may lead to unemployment (Harasztosi & Lindner, 2019). This has therefore facilitated US and other European Union countries from implementing minimum wage policy. Conversely, some people from this book, “Mark P Taylor,” argue that the minimum wage policy facilitates an increment in the quality of various products. Which hence making it hard for the producers of low-quality products to compete but keeping the wages and the prices low (Jardim et al, 2017). Also, frequent urgings have been made by different people concerning enacting minimum wage policy from the other economic books. Economists such as David Neumark, William Washer, and Mark Schweitzer propose or advocates that the implementation of minimum wage policy increases general redistribution of income among the low-income families instead of moving tax income from people with high incomes to those with low incomes (Neumark, 2019). This implies that such economists are against the implementation of wage policy since this initiates sharing income among low-income families.
Conclusion
Conclusively following the evidence from the various economic books such as the “Mark P Taylor,” minimum wage policy should not be enacted since it initiates high chances of unemployment among the unskilled and the young workers. This is mainly caused by the fact that a more significant number of people will be willing to work at higher Wage while only a small amount of the jobs will be available at higher wages (Ahern, 2020). This has definitely inhibited various countries to enact minimum wage policy since it leads to high instances of unemployment.
References list
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