WAGES AND SALARY

ADMINISTRATION

(INTER-COMPANY INEQUALITIES IN PAY)

Presented by: Ibay, Danica M.

INTER-COMPANY INEQUALITIES IN
PAY
Inter-company wage inequalities may be due to:

Differences in the nature of the business or

industry, company size, and geographical location.

Collective bargaining

Company ability to pay

Managements generosity
INTER-COMPANY INEQUALITIES IN
PAY

Differences in the nature of the business or

industry, company size, and geographical
location.
Some types of industries have greater earning
power than others. Many banking and insurance
firms, the more stable industries today, can afford to
give their managerial personnel higher pay.
INTER-COMPANY INEQUALITIES IN
PAY

Collective bargaining

In a collective bargaining negotiation, the

employees pay rates are often determined by the
unions strength and bargaining power.
INTER-COMPANY INEQUALITIES IN
PAY
Company ability to pay

A firm can often pay good wages because of

managements ability to run the business efficiently
through improved or better methods, the installation
of better equipment or machine, wellselected and
welltrained personnel, and the managerial ability of
the people running the enterprise.
INTER-COMPANY INEQUALITIES IN
PAY

Managements generosity

Some companies are more generous in

granting wage and benefits to their employees than
others because of their ability to run the business
profitably.