Friday, 30 September 2011

Fair Remuneration and Productivity

What is Fair Remuneration?

It is definitely not minimum wage. No doubt everyone has their own idea of fair remuneration for work performed. Ardent capitalists, boards of directors and shareholders will consider the lowest possible wage they can get away with paying their workers to be too much! Their only interest is how much they put in their own pockets - I wonder what these individuals consider a fair minimum wage to be for the little real PRODUCTIVE work they do? Nowhere near that of the average employee's requirement is certain.

I have only found one method of remuneration to be fair... That commonly used in the East Coast Commercial Line-fishing industry in South Africa. HALF CATCH! That's it, the catcher takes home half of whatever he (or she) catches. Yes, there are conditions attached (productivity) The catcher (fisherman) has to achieve a minimum catch weight before the half catch rule kicked in, which is only a small percentage of the catch one could reasonably anticipate, to cover a share of the cost of running the boat.

That is totally fair... Instead of the owner of the craft taking 95% of the catch value, owners get half of each person's catch... 

Instead of the shareholders and their lackeys, the MBA's and other wastrels lining their pockets, leaving the people who do the work that actually makes them the money with the dregs, or in this case a rotten fish carcass...

Detractors will argue that this is a poor example, with no practical application in a larger business. BULLSHIT! With modern data recording tools it is totally possible to analyse within a narrow margin of error exactly what any worker costs the business - a version of the process is used commonly to establish 'Cost to Company' salary levels, another example of worker exploitation.

That is one of the things accountants are for... analysing financial data. If I can do it - without any degree or formal training in accountancy, a qualified accountant must be able to.  That is precisely what their qualification is for, NOT for making executive decisions as to how a business should be run. The value of an accountancy degree, MBA, or any other such 'qualification' is worth no more than any other SKILL in the workplace. And then only if used to the fullest extent.

Productivity in the Workplace

Returning to the half-catch model, the workers remuneration depends entirely on their level of productivity. The more they catch, the more they earn, and if they don't catch the barest minimum, they don't get paid...

Workers that are regularly unproductive will find their workplace taken by one who is more productive. Sounds very much like capitalism, free enterprise, market driven economy at work to me... definitely not communism!

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