Comparable Worth as a Labor Issue
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Comparable worth has emerged as a significant labor issue during the 1980s. The concept is simple: jobs requiring similar education, skill and mental efforts should enjoy similar compensation rates within an organization. The issue is hotly debated however, as proponents and critics alike seek to understand the ramifications. This paper examines the history of the comparable worth controversy and anticipates the direction of the issue in the 1990s. The comparable worth issue grew from observations that women traditionally make less money than men. In 1960, the average woman worker earned 60 cents for every dollar earned by the average male worker. By 1985, that figure had increased only to 66 cents for women, despite the fact that many more women had entered the workplace in the intervening years, and could be expected to have made wage advances (Smith, 1985, p. 13). There are many possible reasons for the wage discrepancy, including experience, length of time in the job market and job performance. Sex discrimination is also a potential reason, and a primary cause of the comparable worth issue. In 1963, the Equal Pay Act guaranteed equal pay for equal work, by prohibiting sex-based discrimination for "equal worth on jobs, the performance of which requires equal skill, effort, and responsibility and which are performed under similar working conditions." In 1964, Title VII of the Civil Rights Act outlawed compensation discrimination based on "race, creed, sex or na
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day to be included. One result of internal equity studies however, is that the market may indicate that labor is available for less than what the company has decided to pay (Bernstein, 1986, p. 52).
This is the crux of the critics' argument against comparable worth: free market supply and demand, not artificially imposed restrictions, should shape the wage schedule. For instance, a company may determine that a nurse and an engineer are of comparable worth, and establish that worth to be $42,000 per year. Depending on where the company is located, $42,000 may be out of synchronization with the rest of the labor market for one or both of the positions. It could be that $42,000 greatly exceeds the market wage for nurses, or greatly undercuts the market wage for engineers. If the former is true, the company faces the decision of paying more than it has to for available labor. If the latter is true, the company may settle for a less qualified engineer who is willing to work at the lower salary.
One alternative to comparable worth programs lies with the individual. Employees face different personal circumstances and varying personal options. One may find that a career choice made at age 20 is not as desirable at age 40. Rea
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Approximate Word count = 1278
Approximate Pages = 5 (250 words per page)
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