Reference no: EM133334085

Case Study: SHOULD WORKERS GET HAZARD PAY IN A PANDEMIC? While variable pay generally involves compensating employees according to what they accomplish. employers also can adjust pay to recognize workers for taking on signi?cant challenges. Hazard pay is pay above the agreed-on wage or salary to compensate employees for carrying out hazardous duties or doing work that causes extreme physical comfort and distress that can't be eased with the use of protective devices. During the COVlD-IQ pandemic. some employees sought and some employers o?'ered hazard pay for working in conditions where employees might have to be exposed tothe novel coronavirus. For nurses. paramedics, police of?cers, grocery clerks, and others. working even while wearing protective equipment could pose a hazard of infection. Hazard pay is not required by law. but federal government employees are eligible for 25% hazard pay if exposed to "virulent biologicals." when protective devices do not completely protect them. Amazon and various supermarket chains announced $2-an-hour temporary pay increases for employees who work with the public. Kroger called the additional pay a "Hero Bonus," and Albertsons termed it "Appreciation Pay." Other companies, including Walmart, Walgreens, and CVS have paid workers one-time bonuses between $150 and $500. This additional pay added to companies' expenses at a time when the economy overall had dramatically slowed. but it did provide an incentive for workers to stay on the job. Advocates of paying hazard pay during the pandemic noted that many of these jobs already are at the low end of U.S. earnings. and households that depend on wages from a worker who is cleaning hospital rooms. driving a bus, or delivering groceries have little to fall back on if that worker becomes ill. Furthermore, especially in the early months of the pandemic. companies had dif?culty obtaining enough personal protective equipment for their workers. From this perspective. it is a matter of basic human rights that people who are risking their health to serve society's needs should be compensated. A major objection to hazard pay is that employers might use it as a substitute for creating safe working conditions. Another concern is the cost of raising wages. which employees might come to expect will continue at the higher level after the risk subsides. Companies might have to lay off some workers or even go out of business if they cannot earn pro?ts while compensating employees at a higher pay level.

Questions. Review the list of employee rights in the ethics section of Chapter

1. Which. if any. of those rights apply to the question of whether to offer hazard pay during a pandemic? Explain.

2. During a pandemic, how can a company address the issue of hazard pay in a way that results in the greatest good for the largest number of people?