Case Study International Plastics

International Plastics is aiming to increase its market share by 5% with the help of Simpsons. Both companies need a revised compensation system that supports its business goals. Currently, both companies are paying employees a wage rate that is below the minimum wage in Canada. The base pay for employees in non-technical jobs in both companies should start at $10.30 which is the current minimum hourly wage rate for adult workers. That is however the bare minimum as stated in the Employment Standards Act. International can consider paying slightly above the market rate to attract new talent. Overtime pay should also be implemented and every employee who works overtime will receive pay and a half. This is also required as per the Employment Standards Act. Pay equity is important at International and therefore the wage rate for male and female employees will need to be adjusted. Employees regardless of being male or female in the same job positions doing the same tasks should …show more content…
Violating hours of work and overtime requirements of employment standards legislation could cost the company financial liability. There have been class action lawsuits in Canada where employers attempt to cheat employees out of overtime pay. The courts will likely fine the company for breaching the duty of good faith and require it to compensate the employee for all the hours he/she has worked overtime. International must put an end to this and require the company to pay employees time and a half for overtime pay. Operating costs at the newly merged company may increase due to the implementation of the new compensation system. Managers will need to be informed of budget cuts and/or spending budgets to ensure the company does not overspend. Cost analysis should be conducted to ensure the dollar cost of the benefits package employees choose to receive is equal amongst all employees and meets employer budgetary