There have been many requests for me to repeat a comment I first posted in August, in relation to the ongoing fiasco called “Executive Bonuses”.
It is repeated below;
“In regard to the recent discussions on workplace relations and productivity I must confess I have long believed that the wages of the lower paid in our community need to be increased. But should it be done at the expense of their employment? Many small businesses, particularly those in the retail sector, are struggling to survive, and any increase in their employee’s wages could force them out of business, resulting in the loss or worker’s jobs.
It is hard not to agree that big business, and the money market in particular, gave us the GFC. The huge bonuses paid to market dealers and senior executives gave rise to “anything goes as long as I make it look good this year to get my bonus”. From then on it didn’t matter who lost their savings as long as the bonuses were paid.
I have always, and always will, believe in private enterprise but I also believe in greater equity in regard to worker’s remuneration. There is no equity at present. On the one hand we have the lower paid worker struggling to survive and on the other, the excessive and obnoxious amount of money being thrown to those at the top, often after they have left the company in a worse condition than when they took over the reins.
I have no argument with entrepreneurs who risk everything by mortgaging all they possess to build a profitable business. They take the risk and should reap the benefits, however large they may be. I have no such consideration for those in a salaried position.
If a company employs an executive and offers an acceptable salary and conditions to perform a function to the satisfaction of the board or the owners, they should not be paid any more because they have done what they were paid to do. If there is to be any bonus paid in response to a very successful year’s trading, it should be shared equally among all staff. In the same manner, all staff should be given the opportunity to invest in the company by the provision of shares at a discounted, favourable price.
This would be one way of addressing the gap between the higher and lower paid employees in larger corporations.
I believe we will then have a more contented, and satisfied workforce, and may even rid ourselves of the “them and us” mentality. And as everyone knows, a happy company is a productive company.
Small business is another matter and must be considered in a different light. The nation has to decide if workers in small businesses are to be paid under the same award conditions as those in larger companies, or whether they are to be treated as a separate case to protect their employment. The working week has changed. No longer do we look upon week-ends as days of rest and/or relaxation. Shops that used to close at midday on Saturday until Monday morning now stay open all weekend. Saturdays and Sundays are now just a couple of ordinary days, no different to any weekday. I now see no need to offer extra pay for working on either of these days. As long as workers have a five day, 35-40 hour week, and receive a higher rate for any extra hours worked, it should not matter which days they are. The same bonus situation suggested for larger corporations should also apply to small businesses, and hopefully then, small business will survive.
The alternative is to revert to a five day week with all shops closing at 5pm and no week-end trading, and who wants that?”