COMMENTS

Date: 2015-10-07; view: 679.

Text C

READING DRILLS

1. Practise the pronunciation of the following words:

a) stress the first syllable:

theory, dig, digger, manager, management, generally, influence, scarce, average, organize, bargaining, process, member, relative, union, ground, grade, push, race, cost, living;

b) stress the second syllable:

tradition, traditional, define, express, collective, profession, professional, production, productive, relation, political, determine, negotiate.

The theory that uses the tools of supply and demand to explain differences in wage rates is called the traditional theory of wage determination. For example, many people can dig ditches or work as baby sitters¹. However, fewer have the skills to become professional managers. In other words, professional managers²generally are scarcer than ditch diggers or baby sitters.

This can be expressed in terms of supply and demand. When the level of supply is large in relation to demand, wages generally are low. When the level of supply is low in relation to demand as with managers — wages generally are high. In most cases, the higher the level of skills, or grade of labour, the higher the average yearly wage rate³. For example, semiskilled workers will receive more, on the whole, than unskilled workers. Skilled workers will receive more than semiskilled or unskilled workers. Professional workers will receive more than any of the others.

There are, however, some cases in which the traditional theory does not explain the variations in wage rates. Some unproductive workers, for example, may receive high wages because of family ties or political influence. Some highly skilled or productive workers may receive low wages because of race, sex, or where they live.

At times, wages are determined not by supply and demand but by the influence of organized labour and the collective bargaining process.

In these cases, unions do not try to get higher wages for their members on the grounds⁴that labour is in short supply relative to demand. Nor does management push for lower wages when there is a very large supply of labour. This makes the price of labour-wages hard to define.

When negotiating for wages⁵, unions want to know the wage rates in other plants for the same kind of work and what changes have taken place or will take place in the future in the cost of living⁶.

1. baby sitter — няня

2. professional managers — спеціалісти

3. wage rate — тарифна ставка

4. ... on the grounds — ... на підставі

5. when negotiating for wages — коли домовляються про зарплату

6.the cost of living — вартість життя