Thursday, October 28, 2010

Why wages aren’t keeping up with productivity

Several recent magazine and newspaper articles have explored that since World War II, sustained and substantial productivity increases are not being shared with workers in the form of higher wages. Instead the financial gains are going towards bolstering corporate profits or towards paying for cost saving capital investment which is exactly what our boss is doing currently.
Productivity gains lead to higher wages for workers in two ways. First is higher productivity means lower unit costs of production and eventually lower prices for the consumer. Here our employer is raising the fares in January 2011 which is opposite of that governing principle. The second is productivity gains also result in higher corporate profit. Our boss is laying off blue collar workers without justification and this is not the way to move forward. It is clear now the two candidates for governorship have indicated their interest to tear up our employer and probably make it a state agency answering directly to the governor. We the blue collar workers see no problem with that and we will not surrender our rights. We are glad to see those two candidates appear to indicate that our boss is fair game and he will get the boot. This would be poetic justice let him feel what the layoff members felt even though he has a golden sendoff package.
Our boss is intransigent for redistributing the monies from capital to the labor-operational side. His service reductions created hostility with the general public. Especially when the general public is reducing their reliance of their personal vehicles in huge number due to the cost of gas, tolls, insurance and upkeep of the vehicles while at the same time there is an increase of ridership with the demand for reliable mass public transportation. Instead our boss aims to turn a world premier transportation system to a third world transportation status. The candidates for the governorship are within their rights to seek his removal if elected and we second their views.
Since we are operating normally and we are not bankrupt then why is there a gap in the operating budget? Going after the blue collar workers was wrong and was caused by mismanagement. Our boss’ service reduction and antics have created political impact which the candidates cannot overlook if they want to get elected.
We here in why did you join the union wonder why there are no generous wages since there have been gains in productivity?

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