Wages Policy : Wages, Non-wage Labour Costs and Their Relation to Employment Under Conditions of Structural Adjustment

Issues related to wages, labour costs and their impact on adjustment, employment and growth are a central preoccupation for trade unions, employers and government.

Many perceive wage fixing as a "zero-sum game" - with one person's wage gain equated with another person 's fall in profits.

This lead to confrontation and costly disputes, and sometimes becomes a very political issue, making it difficult to innovate in this area.

This report rejects the zero-sum-game approach, and highlights the positive role wage determination can play in facilitating efficiency and productivity while simultaneously promoting employment, equality and high-qulaity economic growth.