Monday, May 7, 2012

Higher wages come with productivity?

In an ideal world, increase of productivity will result in higher profits for the company, which will lead to better wages for the employees. However, there is one big problem. We do not live in an ideal world.

The problem is that without any external stimuli, there will not be any increase of wages because there are always reasons not to. The economy is not strong, the customers may not buy from us again, expenses are increasing, etc.

Therefore I dare say that very often, the "productivity" that is being used the most often is usually to overload a person with a lot of work. More output per employee so therefore, more productivity. Is that the intent? Of course not but we're not living in an ideal world where everyone is good and fair to one another.

To have true productivity, you must have the stick and the carrot. Carrot is there. Grants to improve productivity for example. Stick? I don't see it yet. I feel that there should be changes to the labour law to cover all employees. Personally, I'm not sure why must we differentiate between blue and white collar workers. Everyone is still a worker and why is there a differentiation between them? If you earn more, you can work them to death?

Puzzles me.

1 comment:

Anonymous said...

Thx for your post, I really enjoy your blog. Long time lurker, first time commenter, you know the drill. I tried to share this one time before, I don’t think it posted correctly…hopefully it will this time!

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