Tuesday, October 23, 2012

WAGE FREEZE?


It is unlikely that top level wages will be frozen voluntarily because the ones who have to vote on it are those who earn the big bucks.    Invariably cost cutting will be done from the bottom up while executives jet around the world and stay in luxury hotels.

A possible solution is to implement gap narrowing wage strategies.     There will then be no cause for workers to strike for better wages.

This can be done by increasing the wages at the bottom by a higher percentage than those at the top until there is an even percentage difference between various grades of workers.  
E.g.:  
Top earners may get 10% wage increases, while middle earners gets 15% wage increases, and bottom earners 20%.    Pensions and unemployment funds need to be adjusted accordingly.

By using inflationary rate wage and salary increases the top earners can have their wages increased to the latest inflation figures.   Middle earners by 1.5 times the inflation rate and the bottom earners double the inflation rate until there is an even percentage difference between various grades of workers.  

Top jobs can be cut by degrading the post when the worker leaves or retires.

The unemployment pay outs and government pensions need to be adjusted to the same level as the average job entry level with a tax free option to earn an extra income of double that amount.
Too often the government employers receive wage increases while pensioners are left out or receive increases at a much lower percentage.   It has become impossible to survive on a government pension.

All pensioners who rely on a government pension should receive their rates and taxes for free if they owned their home for ten years or more before retirement.
It is unfair to force a pensioner out of the home they live in.   The money can be redeemed by the social welfare department after the death of the pensioner by selling the home.   

It should be the responsibility of the government to make sure its citizens joins the workforce.     

It is suggested that any age pensioner who feels that he can no longer pay for his rates and taxes should be able to sign his house or farm over to the municipality after his demise and that of his spouse and handicapped dependents in exchange for free municipal services and rates as long as they occupy the home.    Should he rent the house out and move to a nursing home the rates freeze should be lifted but the house will become the property of the municipality after their deaths.

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