Quote:
Originally Posted by Vallen Chaos Valiant
Currently "Undeserving Higher Pay" goes to all the CEOs who burn their companies to the ground. The lower down the ladder people deserve to get paid more when the company is earning more money, but they don't. Because magically to pay employees less is considered a cost-saving, and that "saving" end up as CEO bonuses.
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'Deserve' is a moral concept and it has little meaning in the way wages are determined. 'Working hard' is another irrelevant concept.
Senior management remuneration, involves fairly trivial amounts when compared to the total wage bill of any major company. They are just one group of employees who have thrived in the current economic climate due to their strong bargaining position. It's a symptom of economic inequality but not the cause.
Globalization, increased competition, deregulation and weakened unions have reduced the bargaining position of many (not necessarily low skilled) workers. As a result the owners of capital (shareholders, private owners) were able to increase their slice of the pie.