These results suggest that the introduction of a minimum wage may not always have a negative effect on employment. It also reduces poverty and directly helps the poorest workers. While some critics of minimum wage argue that the law harms workers and interferes with business development, advocates point to several advantages, including the protection of workers, improving the economy and motivating employees to higher standards of performance. For example, hairdressers and cleaning companies will see a proportionately more significant increase in their wage bill. Workers are paid the higher amount in those locations. Statistical calculations for the wholesale and retail, domestic work, and private security sectors actually suggest that the probability of finding employment in these sectors was significantly higher in the period after the introduction of minimum wages. The progress of minimum wages policy was started after the National Wages Consultative Council Act gazette on 15 September 2011.
Another reason is that even if the boss was kind enough to give them a raise, if no other company did it, he would be uncompetitive and go out of business. Minimum wage laws are also perceived as necessary to protect workers from exploitation by unscrupulous employers. Another reason is that even if the boss was kind enough to give them a raise, if no other company did it, he would be uncompetitive and go out of business. This benefits employers who aren't forced to deal with the inconveniences of high turnover. Assume there are two time periods in an economy.
With a reasonable minimum wage, all the fast-food restaurants in town would be on a level playing field, and this would not be an issue. However, a minimum wage could have potential disadvantages — in particular, there is the risk of creating unemployment as firms cannot afford to employ workers. Macroeconomics: A European Text 6ed. Another assumption is that workers are never under paid. Moreover, the demand for social grants will fall and tax collections will improve. People find better, higher paying jobs and leave regularly. As far as real wages are concerned, at face value the only significant changes were increases in two sectors.
If labour markets are competitive, a minimum wage could cause unemployment because firms will demand less labour, and higher wages may encourage more workers to supply their labour. Second, minimum wage is guaranteed under law. Buyers with monopsony power have some control over their suppliers and can force them to reduce prices or lose their contracts. Therefore the consistent increase in minimum wages seriously endangers the employment of those workers who work in the agricultural sector. Those that oppose a minimum wage. Companies should be forced to pay their workers what they deserve, and that is more than minimum wage is now. In some states, minimum wages are higher than the federal rate.
Reasons for setting a wage minimum included stabilizing the economy and ensuring that all workers, including those who were not labor union members, were at least able to afford basic living necessities. Occupations that pay only the minimum wage are meant to lead on to lifetime careers. Continuing on the example I used prior with Gap Inc, I am a supervisor making ten dollars an hour in comparison to a sales associate who is making seven dollars and fifty cents. By consistently increasing the monetary value of an unskilled worker, government indirectly decreases the monetary value of skilled workers. To begin with, the need for a country to have a minimum wage law was stressed by the international labour organization in 1928. There may be some exceptions based on the type of worker. The legislation in question governs the minimum labour wage for each of the respective economic sectors.
This increase in capital investment means that firms spend money on expensive equipment instead of labour because it is seen as a better long-term investment. On the whole, the effects of minimum wages are varied. He holds a Bachelor of Science in mass communications from Middle Tennessee State University. The federal minimum wage shouldn't be raised any higher then what it already is for several valid reasons. In the economy were in today, people, businesses and politicians are trying to figure out a solution to fix the problem that we found ourselves in. Table 1 : Sectoral minima and date of introduction Is there evidence that minimum wages have caused employment to decline? In this light of sustainability, minimum wage is. According to Law Pay Commission 2006 , a minimum wage is the lowest wage that each employee can legally get from an employer in hourly, daily or monthly basis.
In the constitution of the Republic Of South Africa, the Basic Conditions of Employment Act of 1997 provides the minister of Labour with the authority to regulate minimum conditions and terms of employment Act 75 of 1997. This could have diluted any negative reaction of employers to the minimum wage. However, there may have been other consequences, such as a reduction of the number of hours worked. If it is unrealistic it must be ditched. It can be argued that one of the roles of government is to reduce poverty, and the minimum wage law is a in a typical way.
Every country has its own wage policies, which is due to their political structure and many more other factors. Minimum wage is the lowest hourly amount an employer can pay an employee. People should not have to fight for equal pay for equal work. Employment, Labor economics, Minimum wage 982 Words 3 Pages Organization, Minimum wage defines as the lowest basic wage guaranteed by the law as an attempt to put a floor under the wages of a particular subgroup of working population. Employment, Labor economics, Minimum wage 982 Words 3 Pages Organization, Minimum wage defines as the lowest basic wage guaranteed by the law as an attempt to put a floor under the wages of a particular subgroup of working population.
That proven work ethic will go miles in an interview. This ensures that all people are fairly paid and not defrauded by companies or businesses. This means that minimum wage is subject to change in response to the so-called national socio-economic conditions. Minimum wage is the lowest hourly amount an employer can pay an employee. As a result, the wealth gap between the.
Employment, Employment compensation, Labor economics 1414 Words 4 Pages count: 1302 Minimum Wage Legislation Assignment Minimum Wage Legislation Assignment Introduction: The mitigation of poverty is increasingly seen as a primary economic objective. Many supporters of a minimum wage believe it increases the standard of living and reduced poverty. Employment, Employment compensation, Living wage 1789 Words 6 Pages increased minimum wage in the agricultural sector which was implemented because of the wild-cat strikes which hit the agricultural sector in the Western Cape during December 2012. In order words the benefits far outweigh the negatives. The method of raising minimum wages. Table 1 presents the affected sectors, the date of the introduction of minimum wages and the original and current May 2013 minimum wages for these five sectors.