Bargaining Ability of employee union

Bargaining ability of Employees union and Individual employees

Bargaining ability of Employees union means group of workers presenting their demands in front of the top management. It may be related to Salary, Working condition, Promotion, Transfer etc.,

Statutory requirements

Compensation has been protected by various government statutory acts.
Payment of wages act
Payment of minimum wages act
Payment of bonus act
Equal remuneration act

Ability to pay

Ability to pay means organisation capacity to pay the employees. The companies pay according to their capacity and capability. If the company pay more than the market then the company will be under loss. If the company pay less than the market then the employee wont stick to the organisation. That is the reason the company has to maintain balance for the payment.

Worth of the job

In Companies  where there is no pre planned compensation programme usually derive the compensation from the opinion of the senior workers who are familiar with the job.

Demand supply condition in job market

Demand and supply of the workers influence the wage and salary structure. If the demand for certain employment is high and the supply is low ultimately there will be rise in the salary structure. At the same time if the demand for certain employment is low and the supply is high ultimately there will be fall in the salary structure.