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Pay Determination

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Bach (2010) stated that the state is an entity that sets example and role model for the private sector by support the principles and standards of fairness, equity and involvement in the treatment of its workforce. This is directly in relation with the encouragement of the membership of trade unions and endorses the centralized system and order of collective bargaining. On the other hand, Coffey and Thornley (2009) argued over the concept of “model employer”. According to them, a model employer needs to assess historically in contrast with all sectors as well as at the international level.

It needs to look at the processes, as well as the outcomes. The model employer should need to distinguish legitimating and rhetoric from the reality. Role of trade unions Trade unions play an integral role in the labor market and all the related aspect of it. Trade union is defined as a continuous and consistent association for improving and maintaining the conditions of the individuals working lives (Webb and Webb, 1920). According to Webb and Webb (1920), the trade unions at the early British times has adopted and executed several different strategies that were dependent on the classification of membership they used to organize.

These have changed with the changes in the labor market. The role of trade unions has seen in the controlling the supply of labor. They have got great influence on the training requirements for allowing a certain entry in a job. For example, the professions related to medical studies look for influencing the state and the employers for fulfilling their training and development requirements. Trade unions are found regulating the content of the job; they have an influence over the job content to distinguish and differentiate that particular job other ones (Jackson, Schuler, & Werner, 2009).

This influence was very much practiced previously but with the passage of time this control of trade unions on job content was overhauled by the improved control of employers as well as technology. Another influence that trade unions put on employers is through collective bargain. They search for negotiating the employers on the terms and conditions of trade union members. In the labor market, these negotiations often strengthen by some threats and/or some industrial actions.

The collective arguments of trade unions with the employers often vary over several issues. Trade union discusses and bargains over rates of basic pay to the comprehensive agreements on employees’ productivity and other several issues (Balkin, & Gomez‐Mejia, 1990).

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