The personnel Manager of Roshans Limited have received an application for the introduction of company conveyance for employees staying in town. Although Roshans Limited has provided living facilities to its employees about 60 percent of its 1000 employees still have to commute an average of 10 km to come to work. The union and some of the employee s living on campus have supported the demand . Though the management might favour such a move some sections of the work force are concerned that the introduction of the company conveyance facility may cut down their wages .the company under disguise of compensation allowance pays Rs.20/- per month for traveling to employees staying more than 8 km away from the company premises. 1. What factors would you take into account in evaluation of this demand from the workers?
2. Provide the rationale for implementing or not implementing this demand.