With so many discussions lately about private vs public employees at Alberta hospitals doing the very necessary work of cleaning and sanitization, there has been a lot of speculation about wages. So, stepping fully outside our beer-hall, we decided to weigh in. 1/x
The thing about shifting previously public jobs to the private sector is that there is a risk to the quality of the services. Private companies are profit motivated so they look for savings to increase margins. This means that it is very likely that the same work will be done 2/x
But for less $$/hour. The materials or products used may be of cheaper and lower quality than previous. The employment options go from full time with benefits to part time workers with no benefits leading to furthernunder employment. 3/x
Economically, this actually makes very little sense. The best way to drive an economy is not for the govt to look for savings by cutting services, but to increase revenues. The easiest way to ^^ revenues is to facilitate employment at higher wages. 4/x
This puts more money in the pockets of those individuals more likely to spend it: your lower/middle classes. By keeping our lower/middle economic classes adequately employed this provides spending money, which turns that big wheel of the economy. 5/x
We encourage our govt to not cut these positions. We encourage our govt to employ Albertans at a fair and reasonable rate of compensation. We encourage folks to stand behind our frontline workers. Now is not the time to seek privatization. Profit-driven service isn't service. 6/x
The gap between private sector wages and public employee wages is big: not because the public sector pays too much, but because private sector pays too little to the frontline workers and far too much to its managers and CEOs. 7/10
An interesting thought experiment for you: why do CEOs of major companies (amazon for example) make thousands of times the hourly wage of their lowest paid employee? Is their labour that much more valuable? Or ia there something more nefarious going on? 8/10
What would the world of private business look like if CEOs and our government employees were restricted by a maximum earning? A maximum wage? How would wealth redistribution look? What would that mean for society? 9/10
So as these conversations go forward please remember that public and private sector workers are not enemies. We absolutely should not be fighting each other. That's a distraction. We need instead to turn our attention to why there are such discrepancies in our system.
Cheers
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