1. The two sides in the minimum wage debate hold very strong views.

Explain the motivations of the two sides and how this influences the
positions they hold.
From the employee's perspective, a minimum wage increase will benefit them. The
article mentioned that most minimum wage workers, are within 15-24, but some of
them do have families that they need to support. Living costs whether, it is rent,
bills are not cheap. Employees could be working a lot of hours and still cannot
make ends meet. However, from the employer's point of view, that will cause more
costs, less profit, not all the investors will be happy with that result, so that
could be the reason behind that problem, and that may cause a decrease in the
budget for hiring, so that could be one of the reasons from the employers
perspective, there is always a solution to the problem, the business cold raises
their prices a small amount that would reflect the increase in wages.

2. Consider the following statement: “All things considered, raising

the minimum wage will result in good outcomes for workers and for
Canada’s economic performance. Do you agree or disagree with the statement? Explain
your reasoning.
Yes, I do agree with this statement. Employees' productivity increases with a pay
increase. The article clearly states. Employees will be able to make a living out
of the wages they are getting, instead of working extra hours ad still not being
able to cover their costs, and the company makes a good profit out of productive
employees (a win-win situation). Lower turnover is also a benefit here, I know it
might be less than they usually get, but it will make everyone else life easier.

3. Do you think that companies have a social responsibility to pay

higher wages? Explain your reasoning.
Yes, they do because a company without its employees will not be able to continue
to operate. Employees cannot live in what they are making with the minimum wage
they are getting. The company needs to ensure that their employees are productive
and satisfied with their work, and at least able to make a living out of the
paycheck they are getting.

4. Analyze the situation at Aetna using expectancy theory, equity

theory, and the two-factor theory. What does each theory say about
the importance of wages?
Expectancy theory:
The theory clearly states that the employees will be more motivated to work harder
when they are getting the reward they deserve. This aligns with what happened at
Aetna, with lower turnover and higher profit.

Equity Theory
People are motivated om how they are treated compared to others added value was
created with their jobs. That is what happened with Aetna specifically the lower-
paid, they did not leave the company and had a positive outcome.

Two Factor Theory

A. Hygiene Factors
If we focus on that part of the questions related to the Aetna case, the workers'
source of motivation will definetely be the pay, the job security led them to be
their source of motivation, which made them stick with the company.
B. Motivation Factors
The low-paid workers felt that they were recognized and that was their source of
motivation, when they got the raise they could have felt a sense of achievement,
and that is why they became happier and motivated at Aeta, a that caused them to
stay where they were.