Dynamics of Wage Fixation in a Developing Economy: The Case by Benedict Y. Imbun

By Benedict Y. Imbun

This e-book is a microcosm of problems with minimal salary selection in constructing nations tested within the context of Papua New Guinea (PNG). With provision of parallels, it discusses the severe matters, method, and actors fascinated about selection of minimal salary. Like so much governments in constructing international locations captivated with financial improvement, the serious factor for the PNG govt has been to make sure that salary degrees and the salary constitution harmonise so far as attainable with the nationwide improvement aspirations and however, social pursuits are maintained in the course of the prevention of exploitation of staff. even if, the dual problems with monetary potency and social fairness haven't been simply suitable, this book's testimony of studies in accommodating the problems has been the main not easy for PNG. The demanding situations confronted and classes learnt in making a choice on and regulating minimal salary could replicate comparable reviews for plenty of constructing international locations.

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Dynamics of Wage Fixation in a Developing Economy: The Case of Papua New Guinea

This ebook is a microcosm of problems with minimal salary choice in constructing international locations tested within the context of Papua New Guinea (PNG). With provision of parallels, it discusses the severe matters, strategy, and actors enthusiastic about choice of minimal salary. Like so much governments in constructing international locations keen about monetary improvement, the serious factor for the PNG govt has been to make sure that salary degrees and the salary constitution harmonise so far as attainable with the nationwide improvement aspirations and nonetheless, social goals are maintained in the course of the prevention of exploitation of staff.

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Equally, the Employers Federation, including planters, advocated against a wage increase in that any substantial increase in minimum wages would have inflationary impact and also adversely affect the growth in employment, particularly in the agricultural sector. One notable submission by John Langmore proposed to the Board for wage restraint, which would deter the unskilled rural workers from migrating to urban areas, was to limit adverse social and economic dislocations, often associated with rural-urban migration.

The first was the pressures from both the employers and union sides in urban industrial relations to favour arbitration in wage determination. The second was the need to bring wages for the greatly increased numbers of rural workers not covered by the agreement system into system of regulation. However, wages in the rural sector of the economy lagged well behind the towns because of the backwardness and inefficiency of the plantations, Plantation owners with low profit from old production techniques, inadequate technology and poor organisation maintained that they could not afford the wage levels paid by urban employers.

It implies that “wages were essentially raised at this point to prove the value the Independence would make” (Carrol, 1993:89). Similarly, Mannur (1991:12) argues that policy concern for government was one of social justice and self-reliance. The territory was about to become a country of its own and “nationalism” was very high on the agenda. Coupled with this was the eagerness of the aspiring national leaders to introduce wage equity into policy making. cit). Turner (1962) argued that increases in wage were often used as an ‘opportune’ justice to ease the conscience of colonial government for past exploitations.

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