US pay hike to lag behind India, China

[OhioChick]

< 13 Mar, 2007 1241hrs ISTIANS >

WASHINGTON: Real pay increases for workers in the United States will substantially lag those in China, India and Eastern Europe in 2007, according to new research from a global consulting firm.

US administrative, professional and senior management employees are predicted to see real increases of just 1.4 per cent as against increases approaching 8 per cent in high-growth economies, said Philadelphia-based Hay Group that conducts annual research on Most Admired Companies for Fortune magazine.

"Much like their colleagues in Europe, US employees will be seeing relatively modest increases in base salaries when compared to the emerging economies," said Iain Fitzpatrick, general manager of Hay Group's US Reward Information Services.

"Projected 2007 increases are fairly consistent with real increases seen in the US over the past several years," the Group said on Monday announcing the results of its Global Pay Day Analysis based on data in 19 job families across a number of industries in 50 countries.

http://timesofindia.indiatimes.com/US_pay_hike_to_lag_behind_India_China/articleshow/1756817.cms

[Igel]

1. Good.

Think about it: You have a wage disparity, and you want it narrowed or eliminated. It means that the folk with the lower paycheck need some hefty raises. If everybody's income raises the same amount (in terms of $ or whatever currency), the lower earning folk still get a bigger increase in terms of percentage of pay, but the disparity never vanishes. You need the lower earning folk to get a bigger increase in percentage terms.

Some people like the idea of the wage disparity going away, but never want the steps to occur that will actually make it go away.

[lostinacause]

2. I agree.

[xchrom]

3. so the workers that are responsible for this ''global economy'' miracle

are still going to get the short end of the stick.

[OhioChick]

4. You got it. n/t

[DerBeppo]

5. going from nothing to something is better than going from something to something more. -nt-

[pampango]

6. Which is more important?

The ones going from something to something more are Americans. Or that the ones going from nothing to something are not Americans.

Normally, I think most here would favor increasing incomes for the poor, but once nationalities get involved, the sentiments sometimes change.

[DerBeppo]

7. true.

I think the question is meant to set up a nation v. nation approach, but this is the only way to prevent massive outsourcing. If these countries begin paying more and the workers in these countries begin expecting more, then it will become far less profitable for companies to use outside labor for jobs Americans should be doing.

[qwlauren35]

8. Isn't this rather "apples and oranges"?

Going from 8 cents an hour to 9 cents an hour isn't really comparable to going from $5.15 to $5.75.

I know I'm exaggerating, but what pay are Chinese and Indians getting to begin with?

And what taxes and benefits must also be paid along with wages, as are required in the US?

The significance of the article escapes me. If it's an attempt to embarrass the US into pay increases, it won't move anyone who can do basic math.