The term “unfair rates” means that different wages rates or salaries are given to the employees on the basis of age and gender. Under this situation, some employees are asked to work on lower rate on the same position at which the other employees work at relatively higher rate. It is found that the low wage rate of such employees is balanced with higher benefits and stable job promises (Kickul, 2001).
Apparently, the unfair rate is an unethical practice which should be prohibited by the law, but under some circumstances, the companies are allowed to use unfair rate practices for the employees within the company.
In some areas of the world, where the countries are being operated on very poor economic condition, they are allowed to purchase employees at lower rates than the existing employees. Also, there are some countries in the world, where most of population is based on women and young people. For them, the company focuses on the policy that the low rate employment is better than unemployment, especially in the condition when the economy is in recession. The company also finds the risk that they will lose the existing higher wage-rate employees, and also the opportunities of hiring low rate employees at lower, bearable cost under a recession. Thus, they use the unfair rate strategy in order to improve their