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Primarily, the company would be forced to implement equal pay practices. If it is to maintain its historical pricing practices, some workers will have to be fired to make up for the consequences of raising the payment for the workers in question. Both men and women would be likely to be fired, which could result in a severely negative workplace atmosphere for the remaining workers. Hostility could for example be levelled particularly at the workers who received pay raises, as they would be blamed for the loss of the workforce and the consequently increased workload.
5.
The main strategy that has affected the company's human resource policies is pricing. In order to provide the public with competitively priced products, the company has adopted a policy of minimal wages for female workers. This has enabled it to remain competitive in the market. A more equal pay scale for the women involved would either require laying off part of the workforce or giving up the company's competitive edge.
6.
Cultural norms should not at all affect compensation systems. The law does not permit discrimination on any grounds, whether these be cultural or otherwise. Indeed, the Equal Pay Act and other non-discrimination laws prohibit compensation adjustments to reflect differences such as race, color, religion, sex, nationality, age, or disability (EEOC). Title VII of the Civil Rights Act also prohibits any discrimination in the workplace on these grounds.
Clearly, however, cultural norms do play a role in CCP's compensation practices. Firstly, women in the production plant receive less pay, apparently precisely and only because they are women,...
In the long-term, however, attention should also be paid to what Poggi refers to as "relative" wages and the possible discrepancy between CCP's compensation program and that within the industry across the country. Female workers may for example display current satisfaction with their wages. However, as they become increasingly aware of discrepancies between their own compensation and that for other women in their industry, they may become dissatisfied. Ultimately, the company could be harmed by the lack of performance and loyalty that this would result in.
While satisfaction with the pay is therefore an important criterion, it should not be the only one for evaluating the compensation system. It should be ensured that such satisfaction is sustainable over the long-term and furthermore that industry-wide by systems across the area will accurately reflect that of the CCP company. Sam's input should therefore be taken quite seriously in terms of the company's long-term survival.
References
Poggi, Ambra. Within-establishment wage inequality and satisfaction. 15 March 2010. Retrieved from http://www.laboratoriorevelli.it/_pdf/wp100.pdf
U.S. Equal Employment Opportunity Commission (EEOC). Equal Pay/Compensation Discrimination. Retrieved from http://www.eeoc.gov/laws/types/equalcompensation.cfm
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