A grouping of employers who exchange information and perhaps coordinate their policies on wage determination. Pay clubs may consist of employers in a particular sector or locality and may be more or less formalized arrangements. In some cases, the pay club may coordinate a salary survey amongst its members, whereas in other cases there may be a less structured exchange of information. The purpose of pay clubs is to allow employers to maintain rates of pay which are equivalent to those in other companies, and so avoid recruitment and retention problems. They may also be used as a means of coordinating employer responses to bargaining pressure so as to prevent a general rise in wage costs across a given labour market. The functions of pay clubs may also be discharged by a formally constituted employers' association.
Subjects: Human Resource Management.