Question

One of the commonly cited reasons that organized labor continues its presence in American economic life is due to the wage gap that is widening between labor and management. Why do these gaps occur? Should government be involved in regulating the workplace to address these income gaps? Could regulatory agencies do what unions are trying to do – which is to ensure better pay for American workers?

Answer 1

The gaps in income wages in the US happens for various reasons like part-time jobs with no benefits meant for the students and part times like the food restaurant jobs. There are jobs in the US that pay up to 1000USD per hour except for the people and the skills and the scope are different. Further, the gap in gender pays is also a historical reason why the basic minimum wages are not set or made a constant across the US.

The government sets the hourly wages of the nation and states with the business in it. Hence it’s the competent authority to set the wages on an hourly basis across the US. Here the regulatory units can work better than the trade unions. The regulatory bodies fix the annual expenses of the workers and regulate the inflations which are part of the pay increments which the regulatory bodies can best do. The regulatory bodies can best serve the workers’ wages gaps and the wage needs on an hourly basis irrespective of gender would make it possible. The unions can do what the regulatory bodies can and implement it nationally. The regulatory body also takes care of the wages and pay gap in gender issues as per the law and serves the case well.