Carter Cleaning Centers does not have a formal wage structure or rate ranges or use compensable factors. Wage rates are based mainly on those prevailing in the surrounding community and are tempered with an attempt of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid.

Carter does not do any formal surveys when determining what his company should pay. He peruses the want ads almost every day and conducts informal surveys among his friends in the local chapter of the laundry and cleaners trade association. While Jack has taken a seat-of-the-pants approach to paying employees, several basic pay policies have guided his salary schedule.

Although many of his colleagues adhere to a policy of paying minimum rates, Jack has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates, a policy that he believes reduces turnover while fostering employee loyalty. More concern to Jennifer is her father s informal policy of paying men about 20% more than women for the same job. Her father explains that they are more robust and can work harder for longer hours, and besides, they all have families to support.

Relate Carter's male-female differential compensation and five crucial compensation policy issues that may be faced while framing the compensation policy of the Carter Cleaning Centers. (5 marks for discussion on male-female differential compensation and 5 marks for the compensation policy issues) (10 Marks)