Management 1 - Entitlement?

I hope that I may use the example in Nancy's previous post, her comment that the enlightened Henry Ford paid his employees above the cost of living to ensure a dedicated workforce.

But, today, the emphasis seems to focus on a worker's entitlement.  It raises many questions, for example, should bonuses be an entitlement?  Are incentives necessary?

This may be my shortest post, as I hope to become part of useful discussion.

Politics 9 - Percentage Formula

I had cause to read the Cyprus Mail this morning, and was driven to write a comment to an article about the trade union of bank employees reorganizing the downsizing of the Bank of Cyprus.  I know, I should improve my prioritizing, i.e., Blog first, then, the media.

The EU has applied draconian measures to the Cypriot economy where some banks have ‘gone under’.  Unfortunately, Cyprus politics has been tied to Greece, and still is.  Hence, the application of strict rules for a much-needed ‘bailout’ by the EU.

The financial story is quite complicated, and would require more space than this Blog allows.  But, with regard to the Bank of Cyprus, the EU Troika forced the bank to freeze 47% of the accounts, and depositors having more than € 100,000 had the excess turned into long term bonds, not to mention a maximum daily withdrawal amount of € 300.

Naturally, many employees were ‘invited’ to accept retirement, and the remainder will experience severe pay cuts.

“The union proposed the percentage of pay-cuts that should be imposed by the banks, as if this were its responsibility. It decreed that cuts for salaries between €2,000 and €4,000 would be 10 per cent, between €6,000 and €8,000 at 20 per cent and over €10,000 at 30 per cent.  The unions dictated that the higher the salary, the higher the percentage cut, which on the surface seemed fair but it is not, because it reduces wage differentials”.

“Why should a senior bank executive, who works long hours, has many more responsibilities and much more pressure suffer a bigger pay cut than someone in middle management with a much easier job? Only unions, the great levellers and enemies of excellence, would think this is good arrangement. In effect, the unions are imposing an income tax policy, which they have no legal or moral authority to do, in the name of workers’ rights and nobody is prepared to challenge them.”

Thus, I felt that a comment should be made, because this has always been one of my favourite subjects.

What is the purpose of a salary increase (All things being equal)?  There are two simple reasons, 1. To reward excellent work, and 2. To adjust for inflation.

Of course, we all know that annual salary increases are regarded as an automatic event, regardless of employee excellence or the cost of living, and that is the first incorrect model.  Furthermore, management tries to use a formula of percentages for salary adjustments which is also unfortunate for employees at the bottom of the scale.

If there is an increase in inflation of 1%, and a related increase to the cost of living, does the CEO’s family annual grocery bill increase by € 2,000 and that of the cleaner only increases by € 200 (Assumes salaries of € 200,000 for the CEO and € 20,000 for the cleaner).  Of course not.  The cost of grocery essentials increases equally for both families.

Therefore, the unions, in this example, are right to apply a varying scale, and those at senior levels should stop complaining.  There are good times and bad times ... this is not a good time.

It is time for using the 3-star hotel.

Please comment via the Blog page (See below).

Politics 2 - Multiculturalism

Multiculturalism, even in a political sense, may be interpreted in various ways.  Generally speaking, it has come to mean the argument for extending equal status to distinct ethnic and religious groups without promoting any specific community values.

Originally, in my opinion, it was thought to lead towards assimilation and monoculturalism.  But, now, this commendable idea seems to have failed.

We have a global society that is multinational and where everyone in the developing countries, today, because of the Internet and other forms of international media, desires a higher standard of living ... and we cannot be critical of that.  The problem is the perceived entitlement of citizens of poorer countries to emigrate to richer countries and, this, they will attempt to accomplish illegally, if necessary.

As I said in the introduction, it is “extending equal status to distinct ... groups without promoting any specific community values”.  Therefore, it accepts religious beliefs dependent upon observance of the country’s laws and constitution.  For example, if Sikhism requires a man to carry a knife, the knife should by symbolic and unable to cut.  If Islam requires a women to be modest, it is too extreme to completely cover the face, and security laws must predominate.  If genital mutilation is considered to be a violent and disfiguring injury, then, those who carry out such acts must face the full force of the law.  Finally, Sharia law is not part of Canadian law, and any attempt to include parts of it, must be strongly resisted.

Ask an immigrant from Somalia (for example) if they are, either, a Somalian, a Somali Canadian, or a Canadian (assuming citizenship), there should only be one answer.

Assimilation was never going to be successful and, now, it seems that multiculturalism is a failure too, at least, according to many powerful world leaders — Thus, another look at our whole immigration philosophy is necessary.

Therefore, it is a political requirement ... highlighted in Norway, recently.


Is that a controversial comment to make?  I hope so.