Friday, 15 June 2012

once more the selfish rich

I was laying half listening to the news this morning when I heard about the boss of some advertising agency demanding a 30% pay rise. It started me thinking back to the days when I have listened to management lectures and lectured myself about companies needing team work to survive. Everybody in any business makes a contribution to the success or failure. Most employees, except some left wing union members, accept that there have to be differentials in pay. Those at the top of the company have to earn higher wages than those at the bottom. I am not going to discuss whether the differentials in most businesses can be justified. That is for another blog.
If however the business requires team work there is a case for equal pay rises. This does not mean that those at the top must have the same cash rise but the same percentage. What should happen is the company should decide how much of the profits can be allocated to increasing remuneration. This is then the percentage that can be applied to all pay grades. If the CEO earns £1000000 and the rise is 10% he or she will get £100000 rise. If this is the agreed rate, an employee on £15000 will get £1500 rise. That way there can be no argument about unfair treatment. Then everybody will feel properly rewarded.
It will not happen because the selfish rich have the power and the connections to enforce their will.