Average annual wage in selected profession/occupation

1. Professional minimum wage more workers are believed to be helped than hurt by the minimum
wage.
2. Minimum wage gives society some assurance that employees are not taking undue advantage of
vulnerable low shifted worker.
Union may raise competitive wage rates
a. Increasing the derived demand for labor.
b. Restricting the supply of labor through exclusive union
c. Directly enforcing an above equilibrium wage rate through inclusive union
Wage differential are explainable in terms of
a. Marginal revenue productivity of various group of workers.
b. Non compensation groups arising from difference in the capabilities and education of different
group of workers.
c. Compensating wage differences that must be paid to offset non-monetary differences in jobs.
d. Market imperfection in the forms of lack of job information, geographic immobility, unions
government restraints and discrimination.
Seniority and job protection one of the bases for workers with length of stay showed be the first in
proportion, last to be lay off
CBA negotiator of labor contracts
Bargaining questions
a.
b.
c.
d.

Union status and managerial prerogative

Wages, hours and working conditions
Control one job opportunities
Grievance procedures

Characteristic of labor
1.
2.
3.
4.

It is perishable.
Labor and the individual are inseparable.
Labor supply does not change quality.
Most employable persons do not like to move

Problems of labor
1.
2.
3.
4.

Unemployment and underemployment

Inadequate wages
Industrial and labor management conflicts
Economic securities

Effects of unemployment
1.
2.
3.
4.

Loss of outputs and income

Depreciation of human capital
Increase in crime
Loss of human employment dignity

Perishable cause of inadequate wages

1. Inflation
2. Lack of skills
3. Too many dependents