GLOBAL WAGE TRENDS

Creating Shared Value

Top 10 global Crisis

Interstate conflict Extreme weather events

Failure of national governance

State collapse or crisis

Unemployment or underemployment

Natural catastrophes

Failure of climate-change adaptation Water crises Data fraud or theft Cyber attacks

Interstate conflict Extreme weather events

Failure of national governance

State collapse or crisis

Unemployment or

underemployment

Natural catastrophes

Failure of climate-change adaptation Water crises Data fraud or theft Cyber attacks

What are the primary indicators of a Nations Economy ?

General economic conditions in the country as measured by the GDP

Inflation

Labor supply

Demand situation

Growth in productivity

Cost of doing business

Wage levels

Source : ILO

Minimum Wage

Minimum Wage

Jobs for low-income workers

A minimum wage is defined as the lowest monthly remuneration that employers may legally pay to the workers.

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013100

103

106

109

112

115

118

Real wage index

Labour productiv-ity index

Inde

x (b

ase

year

=19

99)

Trends in growth in average wages and labour productivity in developed economies (index), 1999–2013Note: Wage growth is calculated as a weighted average of year-on-year growth in average monthly real wages in 36 economies (for a description of the methodology, see Appendix I). Index is based to 1999 because of data availability.Source: ILO Global Wage Report 2014/15.

Stakeholder AnalysisStakeholder Roles Responsibilities Interests Motivation Ran

kInternational Trade Organization

To help expand world trade

Eliminate trade barriers Provide strong incentives for domestic and

global trade growth

Reduce import tariffs Provide consumers greater variety of goods Stimulate job creation as industries sell

beyond borders

Drive worker focus on country competitive advantages

Greater access to modern technologies, healthcare, commerce and education

7

International Labour organization

Promoting Jobs and Protecting people

Promotion of rights at work Encourage decent employment

opportunities Enhance social protection and strengthen

dialogue on work-related issues

Give an equal voice to workers, employers and governments

Ensure that the views of the social partners are closely reflected in labour standards and in shaping policies and programmes.

Drive labour equality Generate labour for majority

populous Drive the poverty divide among the

bottom layer of the pyramid

6

Governments Administer and govern the implementation of the policies

Increase employment rateReduce inflation Increase GDP growthEncourage industry behaviour in minimum wage adoption

Improve the employment rate Improve the economy Encourage the growth in industrial

production Enhance the quality of life

Better social life and local communities

Growth in meeting basic needs of its communities

Growth in income and spending Growth in Trade and manufacturing

1

Business / Manufacturers

To manufacture and stimulate the economy

Provide better quality of productsReduce the costs Enable better trade practicesSupport community needs profitably

To engage in ethical and social well-being through manufacturing value enabling products

Adopt innovative processes to deploy new products

Lower taxes Increase revenues

Maximize gross profits Lowers Taxes Build business strategies to engage

social well being Improve brand image and reputation

2

Labour councils (unions) and Labour population

To create better employee - employer relationships and effective labour pools

To be effective medium in labour – owner relationsTo channel labour pools from local communities to Big box retailers and industries

To improve employment rates of local communities

To promote better labour sourcing practices by providing the labour pools

To liaise with local and central governments in promoting policy adherence and governance

Reputation to drive effective social encouragement and engagement

Advocates of better employment measures and policies

 

3

Financial Markets / Institutions

To engage profitable exchange of trade in the economy

To support industries in debt financing and equity financingTo be the levers of financial stimulus to growing marketsTo drive economic, financial and employment growth

To lend debt and equity to growth oriented industries

To provide attractive debt financing for organization adopting government policies

 

Interest revenues for Banks and strong equity markets

  

4

Local communities

To enable and create socially, financially healthy societies  

To be socially responsible for basic education and societal well beingEncourage better corporate – social engagement

Promote increase in prosperity inside the community.

Increase the Income of the population generating better quality of life for the same population.

Better educated communities Basic skilled workforce

5

System Thinking and The Feedback Loop (As Is)

Proposal

Systematic TaxEasing Policy

Systematic Debt Rate discount PolicySpecial debt financing rates overmeeting a % labour population with min wage adherence.

Minimum Wage

Tax Exemption

System Thinking and The Feedback Loop (To Be)

Recommendations• Systematic Tax Exemption Program for businesses adopting

minimum wage regulations prevents businesses from increasing product cost and will maintain stable customer demand which prevents minimum wage labourers from losing their jobs due to lack of production

• Systematic Debt Rate discount Policy which allows special debt financing rates over meeting a % labour population with min wage adherence.

• Government will revise the minimum wage policies periodically and will amortize the tax exemption over that period. This framework will also prevent excessive inflation.

Thank You