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PharmChem implemented a time-based pay system. A job evaluation system determined the pay grade…

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PharmChem implemented a time-based pay system. A job evaluation system determined the pay grade for Pharmacists on grade 5. Grade 5 has seven steps to allow for pay increases in order to motivate employees to work towards good performance. Each step represents a merit pay increase which is the monetary reward for good performance. PharmChem also did external benchmarking to ensure their pay for Pharmacists is market related. There are two Pharmacists in the Cape Point Pharmacy. Dan Hoskins qualified 10 years ago, and started working for PharmChem four years ago. He was appointed on step 4 of pay grade 5, and is now on step 6. Thumi Nkosi qualified last year, and was appointed two months ago on step 1. The pay difference between pay grade 5 step 1 and pay grade 5 step 6 is R 15 000 per month. Thumi is unhappy about the pay difference between her and Dan. She feels that ParmChem uses discriminatory pay practices against female Pharmacists, since she earns less money than her male colleague. Not only did she threaten to register a grievance if her salary is not increased with R15 000 to level 6 immediately, she also threatened to resign since she can earn a higher salary at her Father’s privately owned Pharmacy.

2.1 Is Thumi correct in her assessment that PharmChem treats her unfairly? In other words, that there is no pay equity between her and other Pharmacists? Give reasons for your answer.

2.2 Thumi is very talented and you would prefer not losing such a good employee. Would you increase Thumi’s salary to be on the same level as Dan? Give reasons for your answer.

2.3 How can PharmChem resolve Thumi’s problem?

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