It has been long debated that firms often exploit their employees and are the major reason for problems relating to human resources. This misconception often leads us to believing that firms are always at fault; however a recent movement form pressure groups (Labor Unions) to increase the minimum wage rate shows another side of the argument.

A recent article, “Minimum Wage Backfire”, revealed that the pressure groups have been misusing their power. McDonalds, one of America’s leading fast-food franchise, has been the target of these groups. Earlier this summer CEO Don Thompson was forced to increase the wags his firm used to pay its employees, as a result the “worlds largest restaurant company reported a 30% decline in their quarterly profits on a 5% drop in the revenues.

This is a serious issue since instead of helping the employees earn of benefit more from higher wages the extreme pressure, accumulated on a single firm functioning in slow growing saturated market, groups have forced the employees to be on the verge of being redundant. With rapid growth in technology, labor is getting more prone to being substituted by efficient, customer-friendly and accurate capita use

We should really examine and evaluate our steps with out blindly supporting human rights activists. Forcing one of the largest labor-intensive firms to adopt capital use is never a wise option.

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