Managing income inequalities.

THIS is with reference to the article 'Trade unions' new challenge' (Feb 6). The wealth and income inequality narrative has been ongoing for several decades without anyone actually addressing the problem the way it needs to be addressed.

In the corporate world, the gap in income, and, consequently, wealth, goes up every year because of the simple reason that annual increments are based mostly on the same percentage increase across the board. Therefore, if the decision is to give a 10 per cent annual increase with effect, say, from Jan 1, the top gun in the organisation who makes Rs100 million per annum (many persons actually make much more) will get an increase of Rs10 million in his annual salary; or Rs833,333 per month. On the other hand, a person on a lower rung, whose total annual salary is, say, only Rs600,000 will have an addition of Rs60,000 over a year; or Rs5,000 per month.

Just one increment, as we can see in this...