Case Study: IBC Pay Equity

International Bakery Company-Pay Equity Assignment

Assume you are the manager and responsible for the employees in the five (5) situations described below. The following IBC employees are complaining about their base pay rates. For each employee (1. through 5. below), complete the following:
a. Identify the type of equity expectation about which he or she is concerned.

b. Write a brief outline (bullet points) of what you would say to explain why, from the point of view of the company, the base pay rate is fair. Identify and explain the variables that might influence differences in base pay rate. In most of these examples, multiple variables may be affecting the difference in pay.
1. A dishwasher in one of the retail stores is not making as much as the cashier in the same store.
2. A bakery associate is not making as much as another bakery associate in the same store.
3. A bakery associate in Georgia is not making as much as a bakery associate in New York City.
4. The nonunion bakery associates as a whole are not making as much as the factory workers in the chemical processing plant down the street. The chemical plant belongs to Monsanto, a company whose revenues are 100 times as great as IBC’s revenues.
5. The VP of human resources is not making as much as the general counsel (i.e., head of the legal department).