Factors influencing Remuneration
Tutorial 2 – Workbook 2
The labour market is an imaginary market, where employers and employees meet. The labour
market operates as an open system therefore various factors can influence the market. Amongst
others, these include discrimination, inequality, capital mobility, employment levels, productivity,
demographics and monopolism.
When is discrimination fair?
Discrimination occurs when decisions regarding remuneration, training, recruitment and selection is
based on factors unrelated to the job. It is only fair to discriminate on these grounds if it is based on
affirmation action, or if it is an inherent requirement of the job.
There are different types of discrimination that relates to remuneration. These are:
1. Access discrimination – occurs when qualified women and or minorities are denied access to
jobs, training or developmental opportunities or promotions.
2. Valuation discrimination – occurs when qualified women and or minorities are paid
substantially less than males for work of equal value. (Legislation on “Equal pay for work of
equal value”).
3. Disparate treatment – occurs when someone intentionally treats another individually less
favourably due to race, gender, colour, ethnicity or sex or cultural orientation. In essence, it
refers to treating protected groups less favourably.
4. Disparate impact – occurs when an employer applies unintentional discrimination to the
entire workforce without even realising it. For example, this could mean that an
organisation’s HR policy, at face value, is neutral but has the effect of discrimination.
*Refer to your prescribed textbook to study the other factors i.e. inequality, capital mobility,
employment levels, productivity, demographics and monopolism.
Economic Factors influencing Remuneration
A minimum wage is the lowest hourly, daily or monthly wage that employers must legally pay
employees or workers. Minimum wages usually apply to unskilled or semi-skilled workers in the
service industry, factories or manufacturing plants. In South Africa, the minimum wage is directed at
those who are often the most vulnerable in the workplace. There are also special provisions, for
example, for domestic workers and farm workers. Minimum wage rates may differ across
geographical areas, for example, minimum wages differ between cities and rural areas. They may
also differ in terms of pay periods (daily, monthly or yearly). In South Africa, minimum wages are
usually set for a year. Government and the Department of Labour can set minimum wages.
Minimum wages can also be negotiated by unions and through collective bargaining agreements.
What are the arguments for minimum wage?
A minimum wage is the lowest hourly, daily or monthly wage that employers must legally
pay employees or workers.
Minimum wages usually apply to unskilled or semi-skilled workers in the service industry,
factories or manufacturing plants.
Tutorial 2 – Workbook 2
The labour market is an imaginary market, where employers and employees meet. The labour
market operates as an open system therefore various factors can influence the market. Amongst
others, these include discrimination, inequality, capital mobility, employment levels, productivity,
demographics and monopolism.
When is discrimination fair?
Discrimination occurs when decisions regarding remuneration, training, recruitment and selection is
based on factors unrelated to the job. It is only fair to discriminate on these grounds if it is based on
affirmation action, or if it is an inherent requirement of the job.
There are different types of discrimination that relates to remuneration. These are:
1. Access discrimination – occurs when qualified women and or minorities are denied access to
jobs, training or developmental opportunities or promotions.
2. Valuation discrimination – occurs when qualified women and or minorities are paid
substantially less than males for work of equal value. (Legislation on “Equal pay for work of
equal value”).
3. Disparate treatment – occurs when someone intentionally treats another individually less
favourably due to race, gender, colour, ethnicity or sex or cultural orientation. In essence, it
refers to treating protected groups less favourably.
4. Disparate impact – occurs when an employer applies unintentional discrimination to the
entire workforce without even realising it. For example, this could mean that an
organisation’s HR policy, at face value, is neutral but has the effect of discrimination.
*Refer to your prescribed textbook to study the other factors i.e. inequality, capital mobility,
employment levels, productivity, demographics and monopolism.
Economic Factors influencing Remuneration
A minimum wage is the lowest hourly, daily or monthly wage that employers must legally pay
employees or workers. Minimum wages usually apply to unskilled or semi-skilled workers in the
service industry, factories or manufacturing plants. In South Africa, the minimum wage is directed at
those who are often the most vulnerable in the workplace. There are also special provisions, for
example, for domestic workers and farm workers. Minimum wage rates may differ across
geographical areas, for example, minimum wages differ between cities and rural areas. They may
also differ in terms of pay periods (daily, monthly or yearly). In South Africa, minimum wages are
usually set for a year. Government and the Department of Labour can set minimum wages.
Minimum wages can also be negotiated by unions and through collective bargaining agreements.
What are the arguments for minimum wage?
A minimum wage is the lowest hourly, daily or monthly wage that employers must legally
pay employees or workers.
Minimum wages usually apply to unskilled or semi-skilled workers in the service industry,
factories or manufacturing plants.
