Employer Attitudes to Wage Policies in Developing Countries

Abstract

The main responsibility for the determination of wage levels should rest with the parties most concerned, that is the employers’ organisations and trade unions. On the one hand employers will endeavour to ensure that earnings are not unreasonably high, while on the other the unions will prevent exploitation. Naturally during negotiations full consideration will need to be given to the normal play of economic, social and political forces; and when differences arise between the parties some method of achieving a settlement must be provided. At this stage the government begins to take an interest in the proceedings and endeavours to provide a settlement through conciliation or arbitration procedures or an industrial court. Therefore it is desirable that the government should have formulated a wage policy, so that the arbitration or industrial court awards may be framed within the limits of the declared policy and not be subject to the whims of individuals.