Monday, August 1

Swedes slam centrally negotiated wages

For an avowedly centralised socialised model, this is surprising. I quote:

A majority of Swedes, 60 percent, want to arrange their own salary raises through individual negotiations with their boss, shows a survey published Friday by employer organisation Almega.

Less than one in ten would prefer to see wages set through centrally run union negotiations.
"It's also interesting to see that 6 out of 10 think it's more fair that those individuals who perform best and put in the most effort should receive a raise, compared to the 3 out of 10 who said it would be more fair if everyone was always guaranteed a raise, regardless of performance and effort," said Almega's CEO Jonas Milton in a statement.
50 percent of survey participants were also unsatisfied with their union's definition of a fair salary.

It definitely makes sense. For example, I was reading the economist and read that the unionised UPS in the USA which is run by the teamster union has 27% higher wage cost per employee compared to the other logistics firms. Does anybody realise what kind of economic challenge that is? For people who complain that this is unfair, let me point out the situation with GM and Ford who ended up having thousands of $’s of every car’s cost being due to healthcare costs. And we both know what happened to them. And when the crash happened, they had to retrieve those costs. Not good.

No comments: