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Case study: The avon way - Essay Example

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An hourly worker at GM is entitled to more than $20 per hour and some even get more while the same hourly worker at Wal-Mart gets between $9 and $11. The hourly workers at GM get paid breaks while those at…
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Case study: The avon way
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Download file to see previous pages very loyal to their company and consider themselves lucky to be earning such hourly rates which however are lower than the money earned by workers at GM.
The wage structure at GM is very high compared to that at Wal-Mart apparently as a result of the fact that GM is unionised while Wal-Mart is not. The wage structure at GM is likely to be influenced by the collective bargaining or market oriented wages as determined by the labour union. The wages of unionized companies are often determined by the labour unions (Jackson and Schuler, 2010). The benefits of the employees at GM are also higher than those at Wal-Mart and the other issue is that the employees at GM do not have deductibles from their wages. However, the employees ate Wal-Mart have a lot of deductibles to cover for their benefits.
The managers at GM are likely to face stern resistance from the employees in the event that they decide to cut the wages as a cost containment measure. On the other hand, the management at Wal-Mart can exercise flexibility in as far as determination of employee wages is concerned. The management at GM needs the approval of the labour union to alter the wages of the ...Download file to see next pagesRead More
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