Wage increment problems and fuzzy inference approach

We propose a flexible scheme for employers and employees which they can use as a decision support system in their future salary negotiations. This scheme uses a fuzzy inference system for arriving at more mutually agreeable decisions on wage negotiation. For example, rather than specifying 5% yearly increase of wages, we propose that the wage increase formula needs to take into consideration other factors which are mostly difficult to predict with certainty. These include inflation rate, business revenues or (profit), cost of production, number of competitors and other uncertain factors that may affect business operations. The accuracy of the fuzzy rule base will help to mitigate the adverse effects that a business may suffer from these uncertain factors. Based on our scheme, we propose that employers and employees should calculate their future wage by using a fuzzy rule base that takes into consideration those variables which are mostly uncertain and that could affect their decisions.

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