Should wages be linked to profits or to inflation?

What do you think is a better economic policy? Linking wages and salaries to profits or to CPI inflation?

#2

Wages should be linked to profits

  1. Anonymous [1694] argued:
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    For commercial organisations wages can only be paid long term from a profitable company. However there can be no link for two main reasons. Wages reward effort and performance and a management is there to get more for better for less from its staff. Second profitability can be depressed for a while if management decide to undertake a huge level of expenditure thus rendering any form of performance share inequitable for staff if based only on annual profit.

  2. Shon [5] argued:
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    Profit is a loaded word. Insurance companies claim increases in profit every year, but also claim higher costs. And so the consumer pays a little more, either out right or by act of accident or illness not covered etc. So if we pay our employee based on profit, eventually the income would be enormous. On the other hand, if we pay based on inflation, in a depression, the employee then falls to the ground and questions the use of working. I say both ideas are of no use. Equality can be achieved but we will have to change our views of what matters the most….. The bottom line….. or the human condition.

#0

Wages should be linked to inflation

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