Reference no: EM132692720

Question: You are an HR practitioner for a public library. The library employees are represented by the Civil Service Union (CSU). There is a collective agreement between the library and CSU that expires one year from now. One of the employee groups in the bargaining unit are student workers, under the age of 18.

The collective agreement between CSU and the Library sets out the terms and conditions of the students' employment.

The rates of pay for student pages shall be as follows:

Step 1: Minimum wage plus 10% ; Step 2: Minimum wage plus 20% ; Step 3: Minimum wage plus 30%

The newly elected conservative government has introduced legislation that rolls back various labour law entitlements effective next week. One of the changes is the introduction of a new minimum wage for youth under 18 that is $2 per hour lower than the $15 per hour minimum wage for workers aged 18 and over.

Under these changes, the students' wages will be reduced. (approximately a 13.3% reduction in their hourly pay.)

The HR manager, Ashok Kumar, is concerned that lowering the pages' wages poses organizational risks that he must draw to the attention of the library's senior executives.

Identify at least two organizational risks associated with lowering the wages paid to student workers.