Why do we insist on making stupid laws?
It's in the best interest of the company to pay as little as it can and still get the quality/productivity it needs from it's employees.
It's in the best interest of the employees to get as much as they can while providing a service to the employer.
If the company can get the same level of quality AND productivity for less, they have the obligation (to the ownership/shareholders) to replace the current workers with cheaper ones.
OTOH, if the employee can show why he/she can bring either a) better quality or b) more productivity to the company, then they DESERVE to be paid more. This includes things like the fact that the current employee is already trained, already in the payroll system, has already had background checks done, the cost of unimployment claims (or defending unimployment claims), etc. All of those things cost the company some money. So, it's inherently cheaper to keep the current employees instead of firing them and hiring new ones. The new ones would have to be SUBSTANTIALLY cheaper to make it worth the effort. And, if they are SUBSTANTIALLY cheaper, then the company should go that direction.
Basic premise - if someone else can do your job as well or better, and they're willing to do it for less, you're probably not going to be employed for much longer. |
