You are given the position in a factory before and after the settlement of an industrial dispute. Comment on the gains or losses from the point of the workers and that of the management.

Question: You are given the position in a factory before and after the settlement of an industrial dispute. Comment on the gains or losses from the point of the workers and that of the management.

 BeforeAfter
No. of workers2,4402,359
Mean wages45.547.5
Median wages49.045.0
Standard deviation12.010.0

Solution:

Employment: Because the number of workers employed after the settlement is less than the number of workers employed before, it has worked against the workers’ interests.

Wages : The total wages paid after the settlement were 2,350 x 47.5 = Rs. 1,11,625; before the settlement the amount disbursed was 2,400 x 45.5 = Rs. 1,09,200.

This means that the workers as a group are better off now than before the settlement, and unless the productivity of workers have gone up this may be against the interest of management.

Uniformity in the wage structure : The extent of relative uniformity in the wage structure before and after the settlement can be determined by a comparison of the coefficient of variation.

Coefficient of variation before = (12/45.5) x 100 = 26.4
Coefficient of variation after = (10/47.5) x 100 = 21.05

This clearly means that there is comparatively lesser disparity in the wages received by the workers. Such a position is good for both the workers and the management.

Pattern of the wage structure : A comparison of the mean with the median leads to the obvious conclusion that before the settlement more than 50 per cent of the workers were getting a wage higher than this mean i.e. (Rs. 45.5). After the settlement the number of workers whose wages were more than Rs. 45.5 became less than 50 per cent. This means that the settlement has not been beneficial to all the workers. It is only 50 pr cent workers who have been benefitted as a result of an increase in the total wages bill.