A Member of Parliament is classified as a job level 11 and in 2010 earned R802 873 – regardless of length of service in the 5 year political cycle. By comparison the equivalent pay range for a job level 11 doctor is R643 065 to R780 400 and an individual will qualify to enter this range on various promotions and continuous service of between 13 and 18 years post graduation. Most doctors regardless of job levels and service, are not earning anywhere near R780 000.
It is suggested that an independent body needs to be created to constantly monitor, assess and recommend adjustments of ‘measures’ to promote employment equality, both procedurally and substantively, including differential worth, relative worth and comparative worth.
A number of organisations have ‘reacted’ to the various elements of the proposed amendments to the various Labour Laws. The issue of ‘decent work’ has drawn a fair amount of attention and so it should, because the implications of this vague ideal are vast.
International Labour Organisation’s (ILO) has no Convention on ‘decent work’
Mr Zwelinzima Vavi, the General Secretary of Cosatu, (Sunday Times 6 February 2011) erroneously refers to the ‘principles’ of a purported ILO Convention on Decent Work that South Africa is supposed to have ‘ratified’ or signed :
- An income which allows the working individual a good life;
- Everybody having an equal chance to develop themselves at work, and no discrimination;
- Proper and safe working conditions;
- Trade unions allowed, and a real say in work-related matters in place; and
- A state-supported social safety net for the sick, weak, elderly and expecting women.
It appears from the ILO website that there is, as yet, no such Convention on Decent Work, let alone anything for South Africa to sign or ratify.
The website records that the “ILO has developed an agenda for the community of work. It provides support through integrated Decent Work Country Programmes developed in coordination with its constituents. Putting the Decent Work Agenda into practice is achieved through the implementation of the ILO’s four strategic objectives, with gender equality as a crosscutting objective:
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Decent work and a proper community of work environment
When a focus as critical as ‘decent work’ is created it is important to align the understanding of the government, business and the trade unions. Setting income levels to allow working individuals to live a good life has very little to do with the modelling of competitive product pricing and consequently creating businesses and an economy to support a developing community of work.
Labour related costs constitute a fair slice of operating expenses and consequently will have a significant impact on the pricing of products and the sustainability of any organisation.
Measurement and understanding employment equity
In South Africa there is a legal requirement to measure and understand employment equity [EE]. A mechanism or body is needed to show the core measurements of EE (i.e. differential worth, relative worth and comparative worth).
Not only will it create an awareness of the ‘business case’ of the value-exchange equation of employment but also allow for a better understanding of the business implications of labour legislation and exponential growth.
Illustration of the importance of measurement
The current total cost of an entry-level employee in the Public Service is about R70K and is way above the equivalent cost in the private sector – and Cosatu may not be satisfied with this level of pay. This is a simple example of Comparative Worth.
A Member of Parliament [MP] is classified on the DPSA’s Equate system as a job level 11 and in 2010 earned R802 873 – regardless of length of service in the 5 year political cycle. The Differential Worth of Public Office Bearers jobs progresses at the rate of 14.5% across all job levels.
Medical profession (doctors)
By comparison the equivalent pay range for a job level 11 doctor is R643 065 to R780 400 and an individual will qualify to enter this range on various promotions and continuous service of between 13 and 18 years post graduation. Most doctors, who are still in the country, regardless of job levels and service, are not earning anywhere near R780K, – the reason they are so dissatisfied. The Differential Worth of general Public Service jobs progresses at the rate of 19.5% across all job levels.
This simple comparison of MPs and doctors shows that the government, the only employer of individuals paid from public funds, does not appear to be concerned about the core rules of EE. Taxpayers should certainly have their say about this.
Independent body needed
There is a fairly high level of reliance on pay as an organisational structuring tool and this type of comparative information needs to be in the public domain, but under the supervision or oversight of an independent body.
Such a body should address the following issues unemotionally and without specific agendas:
- decent work;
- equal pay for equal work (work of equal value); and
- the so-called wage gap.
Wiehahn Commission
At the start of the Wiehahn Commission (mid 70s) many multi-nationals created platforms to assess many of the employment / pay practices of that time. Many pockets of interest emerged and some excellent work and analysis was done. There were workshops and robust public debates involving all interested parties, usually initiated and funded by businesses.
Public needs to become involved
There is a desperate need to have the same type of public involvement and debates now to avoid the government, government agencies and trade unions from ignoring the management prerogative to run businesses decently and efficiently.
Ontario Office of Collective Bargaining Information (OCBI)
Serious consideration needs to be given to creating an independent body, such as the OCBI in Ontario in Canada, to perform at least some of the tasks referred to above. Thanks to Christopher Albertyn, a former South African now living in Toronto, for drawing attention to this website.
Clem Sunter
Clem Sunter has said that there can be no decent work without decent business – this is the reality. In a recent article in news24 entitled Decent work means decent business, he states that there are three vital factors:
- “The organisation you work for is financially sustainable. In the case of a business, that means the annual value of the products and services generated by the business exceeds the cost of providing them through all parts of the economic cycle. In the case of an NGO, it means your donations consistently exceed your costs and you have sufficient cash reserves for serious downturns. In the case of a civil servant, it is the knowledge that the government is practising sensible fiscal policies and not indulging in large budget deficits. In short, job security which is an essential aspect of decent work rests on working for a soundly managed enterprise with people who know what they are doing.
- The environment within which you work is conducive to your fulfilling your aspirations as a human being and leading a balanced life. The management style is fair and supportive and you are able to mix work with fun at work. Comradeship binds you and your senior and junior colleagues into an effective team. We all know how hard it is to satisfy this condition when the tasks are arduous and require an exceptional amount of physical exertion, but it can be done. Ask any marine commander.
- As far as enterprises are concerned where life is risky, decent work is about having the ability to grow your business if you succeed and the ability to try another venture if you fail. It is about being financially rewarded for the risks you have taken and being held up as a role model for young people of a similar disposition to follow. Above all, it is the thrill of being your own boss – free of the hierarchy and bureaucracy that always accompany organisations beyond a certain size”.
Daan Groeneveldt & Graham Giles