Académique Documents
Professionnel Documents
Culture Documents
Introduction:
a. JP Carruthers Co
JP Carruthers is a medium-sized company with a turnover of £ 220 million and a workforce of
1100 in the last 10 years. The company's main revenue is in the car industry with a net profit of £
14,480,000 in the past year. The company has always received the trust of consumers. They are
negotiating the wages of their workers with Transport Workers' Union - which represents about
600 JP Carruthers Co-workers.
b. Characteristics of JP Carruthers Co
In order to proceed with the successful negotiation of wages, the two sides made their salary
plans.
Transport Workers' Union:
- A price of 72p a unit
- The average woman produces about 71 units a day. Therefore, we would like to receive £
5.68 more per woman per day with 8p more.
- do not agree with the price less than 80p per product
JP Carruthers Co
- Maintaining the price of 72p per standard unit with a daily average of 61 units/person and
an increase of 122p since 62 units
Both parties have made reasonable suggestions and desires to have an appropriate salary as
well as clear labor efficiency to bring the best benefits to both parties.
- Each person made 71 units a day and was authenticated by the accountant. Average
weekly output for the year to date is 7100 units; so, the average daily output is 7100/5 = 1420
units/day.
- The number of women directly employed on the line is 20, so the average daily output is
1420/20 = 71 units/ day/woman
- If you raise your salary to 80p a unit, your salary will increase to 11.1%: (80-72) / 72 x
100 = 11.1
- If JP Carruthers Co accepts an increase of 80p a unit, the salary fund would be about 2.9
million euros from the original 26 million euros: 26 000 000x11.1% = 2 886 000
- Maintaining the price of 72p per standard unit with a daily average of 61 units/person
and an increase of 122p since 62 units
- The cost of the weekly increase is £ 5612:
(71 x 0.72) + (10 x 0.50) = 56.12
56.12 x 20 x5 = £ 5612
- Amounts to be paid if JP Carruthers Co does not have to raise wages
71 x 5 x 20 x 0.72 = 5112
- The goal of the JP Carruthers Co is to increase wages by no more than 10% and the
average wage increase by around £ 500:
(5612 - 5112) / 5112 x 100 = 9.78%
Below is the performance report of Annie Smith - forewoman for the door Trim Line
4. Conclusion:
Ways to pay JP Carruthers Co 's salary are better than paying Transport Workers' Union
if the average output of each person is 72 units if more than one unit, then the pay is
the opposite.JP Carruthers Co is a medium-sized company and is gaining trust from
customers as well as a good management team, so I think it should be divided into two
phases depending on the time of development:
Stage 1: Apply according to the JP Carruthers Co wage calculation for the following
reasons.
If they do not want to expand and develop, it will not necessarily increase productivity,
but it is very effective because it promotes the productivity of those who have not
reached the average level of output but also increases their wages. have an above
average yield.
Pay less than the Transport Workers' Union and do not exceed 10% of the proposed
level
Stage 2: Apply according to Transport Workers' Union 's salary calculation
When the company wants to expand production, increase sales, if each average
producer is 72 units, with this calculation, JP Carruthers Co will have to pay wages
cheaper than the old calculation, for example, the number of employees still
After boosting productivity at the first stage, it is time to keep the balance between
supply and demand.