Answer to Question #188207 in Management for Vaibhavi

Question

Binita is an activist with an NGO working for blue collar workers in various industries in small towns and villages. She wants to educate these workers about a few issues she thinks are important to them, through a workshop. The first such workshop she wants to work on is Minimum Wages Act, 1948. In light of this case, please elaborate the objective of the said Act.

Answer 1

The objective of Minimum Wages Acts

           The main aim of the Minimum Wages Acts is to offer protection to workers against an un-conducive environment where they are paid lower than the duties they perform. The Act ensures that they receive payments equitable to their efforts and progress within the workstations (Burauel et al.,2017). It ensures minimum-wage employees don’t suffer unfair bargaining, and responsible companies offer their rights and freedom. Besides, it fixes minimum wage rates in organizations whose labor is not well-planned.

References

Burauel, P., Caliendo, M., Fedorets, A., Grabka, M. M., Schröder, C., Schupp, J., & Wittbrodt, L. (2017). Minimum wage not yet for everyone: on the compensation of eligible workers before and after the minimum wage reform from the perspective of employees. DIW Economic Bulletin, 7(49), 509-522.