Positive relationship between wages and blue collar performance

We remember when former CEO Jay H Walder wanted to alter the relationship between the wages that are being paid and the level of productivity of the blue collar. What he neglected was he should have first started at the top executives who are hemorrhaging the resources. In addition to the (upper, middle and lower level) management. However he did not do that, he specifically targeted the blue collar exclusively.

He neglected to take into consideration the theory that higher pay allows workers to improve their physical ability to work through improved nutrition and health. Secondly that a wage increase is likely to stimulate greater work effort and higher morale among the blue collar employees. 

We do not agree with management’s argument that a higher wage will cause the firm to reduce employment due to the higher cost per unit of labor - we will counter that argument with an increase makes each worker become more productive. It is also a fact that a wage increase could actually lead our employer to hire more blue collar employees not less if the higher wage stimulates a sufficiently large increase in worker productivity.

Many have admitted that realistically it is probably true that the level of worker productivity depends to some degree on the rate of pay. Many studies found a positive relationship between wages and blue collar performance.