Lessons 29–30 · 2 lessons · U. G‘afurov, Q. Sharipov. Basics of Entrepreneurship: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “O‘zbekiston” publishing house, Tashkent, 2018
29
Labour resources in an enterprise
Textbook: pp. 133–136
GoalExplain labour resources, the employment contract, wages (nominal and real), the tariff system and labour productivity, and calculate them.
New words
employment contract: a written agreement between employer and employee that sets the terms of the work · Mehnat shartnomasinominal wage: the sum of money received for a period · Nominal ish haqireal wage: the quantity of goods and services the nominal wage can buy · Real ish haqilabour productivity: the amount of product made per unit of working time · Mehnat unumdorligi
Explanation
Labour resources are the part of the population with the physical and mental ability to work; their age and the conditions of work are set by law, including the Labour Code in force since 30 April 2023. Teenagers have special protection: shorter working hours, and being given heavy or dangerous work is prohibited. When an employee is hired, an employment contract is made: it records the wage, working time, rest, working conditions and the obligations of both sides. A wage is money paid according to the quantity, quality and productivity of the work. Nominal wage is the sum of money received, while real wage is the quantity of goods and services that money can buy: Vr = Vn / P, where P is the price level. If prices rise, the real wage falls even when the nominal wage does not change. The tariff system regulates the pay level by skill, type of work and conditions. Labour productivity is MU = M / V: the quantity of product divided by the working time spent.
Worked examples
Nominal and real wage: an imaginary employee receives 3 000 000 so‘m a month. The price level rose 1.2 times (that is 12 / 10). The real wage = 3 000 000 / 1.2 = 2 500 000 so‘m in purchasing terms, so the buying power fell even though the nominal sum did not change.
Labour productivity: in an imaginary sweets workshop, 5 workers made 3 600 boxes in 24 days. The working time spent is 5 × 24 = 120 person-days. MU = 3 600 / 120 = 30 boxes per person-day.
Class activity
Contract draft: pairs write a list of the main clauses of an employment contract for an imaginary shop assistant (wage, working time, rest, obligations), then explain why a written contract is useful to both sides.
Practice
1
Write the difference between nominal and real wage.
Nominal wage is the sum of money received; real wage is the quantity of goods and services that money can buy.
2
Why is an employment contract made in writing?
A written document records the wage, time and obligations clearly and protects both sides in a dispute.
3
The nominal wage is 2 400 000 so‘m and the price level rose 1.2 times. What is the real wage in so‘m?
2000000
4
4 workers made 1 600 units in 20 days. What is the labour productivity in units per person-day?