Liberilization of Economic Supplements

Topics: Employment, Bargaining, Employee benefit Pages: 1 (441 words) Published: December 14, 2012
For the everyday worker, liberalization of economic supplements is a good thing. For them, it means a comfortable life of days off with pay, medical insurance, and an ever growing 401k for retirement among other things. However for the nation as a whole as well as for the bargainers, there are problems. There are six issues in particular; added sources of union grievances, the natural increase in cost of some benefits, negative employee motivation, no employee motivation, potential loss in jobs, and finally once benefit packages are often permanent once introduced. With the implementation of these benefits, issues and questions will arise. For example, if during a week, someone leaves early one day and their total hours for the week equal 39.5, is an entire hour of vacation applied? Another issue could be would the death of your significant other’s (but not husband’s or wives) family member be an acceptable reason for a bereavement day? These are issues that would not exist if these benefits did not exist. The cost of benefits may increase based on employee wages. Most employees’ wages increase as their time at a company increases. And therefore the cost of some benefits may also increase even if they are not bargaining factors. For example, one day of paid time off costs the Company that employee’s pay for the day. As the employee gets raises, the cost of that paid day off increases. Negative employee motivation and no employee motivation go hand in hand. If these economic supplements are part of an employment package and not based on performance, there is little to no motivation to do a good job. Perhaps there are two employees that have the same job title and started at the same time, one of them is punctual and does better work then the other, but they are both allotted the same amount of paid time off. There is no motivation for the good worker to keep doing good, and no motivation for the bad worker to do better. There could also be a...
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