The managing director of a company is having a discussion with the employee's representative regarding pay increases for the coming year. As a basis for their discussions both have investigated the present national average for the company's sector. The MD claims that the national average salary is £36 000 whereas the employee's representative claims the average to be £28 000.
a. If both ‘averages' are correct how can you reconcile the differences?
b. What other information should be obtained so that an agreement on pay increases could be reached?