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Wage Fairness: It’s not just about the money

Article | Free | Mar 09, 2011

Dimensions of wage fairness are explored. Most corporate social responsibility work on wages has focused on whether a workplace meets a certain level of compensation, usually the legal minimum wage. But fairness of wages and, crucially, perception of wage fairness, are more complex than that. Even if a factory pays workers the national minimum wage and meets other legal requirements (e.g. pay the legally-required wage on time and in full; pay for the proper number of hours worked) it may nevertheless have unfair wages because of undue disparities in wages within the enterprise or because wages may not reflect worker productivity. In addition to meeting legal requirements, a factory must also consider wage levels in light of prevailing wages and cost of living; rates of wage adjustments, pay systems such as the bases for wages, overtime and wage deductions; and how pay systems are communicated and discussed with workers.

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