Employment Relations for Increasing Wages- myassignmenthelp.com

Question: Discuss about theEmployment Relations for Increasing Wages in New Zealand. Answer: The consequences on the economy are being discussed on a daily basis since the introduction of the minimum wage policy was introduced by New Zealand. This policys objective is to protect the workers at the bottom of the market in labor from going into wage exploitation still it is always associated with the unemployment which is increased(Marcetic, 2017). It should change because of the following issues: Unemployment: The labor markets are in competitions always. Hence, minimum wage will cause unemployment as the organizations would not need much labor and high wage might influence workers in terms of supply of their labor. Uncompetitive firms: High wages can put organizations out of work as the costs would go high and the organizations might not be able to afford that. Firms might face problems for competing with the global markets. Hence, firms might become uncompetitive. Inflation: Cost-push inflation can occur with the increase in minimum wages. The firms when faces increase in the costs that would be passed on to the consumers. This will again impact the firms at the end as they could lose loyal customers at the cost of increased prices. Black Market: Number of working people might increase in black market and firm might ignore paying the legal minimum. Poor never benefit: Minimum wage limitation is that it is unable to increase the cost of living for the lowest groups in income. Poor people always rely on the benefits and are not affected by anything at all. Less effect on poverty: People who get benefitted with minimum wage policy are second income earners and hence, the household will be below poverty line only. Single earners with just above minimum wage have more chances to be poorer. Those are the people who will not benefit from this policy(Economicshelp, 2016). References Economicshelp. (2016). Disadvantages of Minimum wages. Retrieved April 19, 2018, from economicshelp.org: https://www.economicshelp.org/labour-markets/disadvantages-minimum-wages/ Marcetic, B. (2017). The impacts of the minimum wage rise. Retrieved April 19, 2018, from nzherald.co.nz: https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1objectid=11939826