In a recent televised
interview The Deputy President asserted, quiet correctly that the country’s
wage bill is far too high. He further suggested that the solution to this would
be to freeze salary increments for all civil servants as a mechanism to address
it. I would like to contest his perception of the probable solution. Is
freezing civil servants wage bill a sure mechanism of fostering economic growth
or does it just end at that; a low wage bill for the country (of course with
the confounding ripple effects of an unmotivated workforce).
First of all I chose to
wonder why such a statement would be made with such finality at a time when tax
payers are paying a lot of money to sustain the Salaries and Remunerations
Commission. The statement from the outset implies that the work of this commission
is done and dusted since they cannot recommend increments and of course you
realize the effect of recommending salary cuts on any of the cadres. Why should
we then elect to pay such a commission and engage it on a full time basis while
the decision seems to have been made? The paradox of the situation is that, the
commission meant to downsize wage bill is itself, by inference, an unnecessary
addition to the escalation of the same since the statement by His Excellency
the Deputy President renders it redundant. And for sure, they cannot recommend
their own disbandment.
For a country that has
its eyes set towards achieving economic emancipation, judged by the gusto the
new government has decided to correct most of the errors from the past, I must
be fair to note that they indeed do present a great break from the past. Our
wage bill is unreasonably high. There is urgent need to address this with
keenness and pragmatism and neatly lay out strategies that would see us achieve
an amicable bare minimum. This must be looked at within a broader context of
issues and every attempt made to avoid simplistic inferences and conclusion.
The cause-affect analysis has to be well comprehended too.
The single most
important contribution to the economy is the Kenyan people and its dedicated
workforce. It will be prudent therefore to assume that increasing the output of
our workers should result in an improved GDP. What we need to lower this wage
percentage of the total GDP should practically focus on the denominator and to
a much less extent the numerator. Efforts should be put in place to encourage
and compensate increased output, to reward workers’ productivity and set down a
cascade of motivated and productive workers in competition not only with
themselves but with set targets. Attempts to decrease the numerator, which in
this case is the wage bill, will have confounding effects on the productivity
of the workforce and subsequently obliterate any conceived positive effect.
The seduction to direct
inferences is very tempting. The failure to recognize the impact brought by the
social pillars of our economy is also extremely fanciful. The bottom line
effect would be to assume that these ‘non important’ sectors, whose effects to
the economy are less than direct, can be ignored and we get away with it. For
instance what is the impact of teachers, accountants, nurses and doctors on the
economy? These immeasurable contributors are likely to suffer from this kind of
‘direct-relation’ mindset.
If we are to look at
the stratification of the wage cadres, we do find some astonishing ironies; too
many redundant commissions and commissioners. In addition to that, our leaders
do not seem to live by the rules that they create. We are all too aware how our
members of parliament maneuvered a pay rise and concealed it in hazy details. A
recent study by the UK-based independent Parliamentary Standards Authority
(IPSA) and IMF showed that Kenya MPs come second in global salary ranking. The
government will still pay this. So who really should take the blame for these
lopsided comparatives? Condemning the Civil servants because they are meek
suggests a notion of anti-poor policies. The leadership of the land must live
by their own rules, we must advocate for equal pay for an equal day’s work
irrespective of the social status.
The conception that the
Government pays better than the private sector is actually a semantic gymnastics;
the actual statement should be –some private sector players’ pay poorer than
the government. We cannot use a positive comparative when we are analyzing
dismal performance. The reason for this must also be laid bare. While the
government’s main aim is to build the economy and develop the country, the
private sectors’ main drive is to maximize on profits. As a result they cannot
be vilified for hiring the cheapest human resource. The government however must
be disparaged for a poor minimum wage and for a wide wage disparity. These are
very important indicators in a country. These two sectors cannot be compared
using the same indicators.
The move to freeze salary
hikes must be viewed holistically and should not be applied selectively. At the
same time parallel efforts must be rolled out to address the high cost of living.
Choosing to start on one and leaving the other behind would be akin to setting
out to row with a paddle and going for the boat later. We cannot have a rising
cost of living with a diminishing remuneration. In the same breath, we cannot
vilify the very resource concerned with improving the country’s productivity
and await positive results on the other end. We only get out what we put it,
methinks.
No comments:
Post a Comment