Corporate salaries – part 2

So the government cannot dictate the salaries of DHI employees. But what about the other corporations – those that are owned by the government, but are not part of DHI? Can the government set their salaries? Technically, yes. The government can dictate the salaries of these employees. This, in fact, was precisely what our previous governments did. But they always defined them in favour of corporate employees. The logic was simple: these corporations (BBS, Bhutan Post, FCB, BDFC, and others) were considered less attractive than the civil service. Yet they delivered important, sometimes vital, services for the nation. So previous governments ensured that corporate employees enjoyed relatively higher wages.

Has the situation today changed? No. The civil service is still considered much more attractive than corporations. And corporations continue to provide crucial services for the nation. So our government should continue to provide higher incentives in terms of wages for employees of these corporations.

Otherwise, the government should make these corporations fully autonomous. And let them determine their own salaries. But many of them provide services that may be unprofitable, even though they are crucial for our nation. The government must be prepared to pay for these services.

 

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  1. Is it possible for the NA to discuss this issue during the upcoming session? I think what you have written here makes good case and the issue deserves debate in the parliament.

    I am convinced that you know the ground realities.Thanks a lot

  2. I wouldn’t even suggest sucha thing to be debated in the NA. Who will debate against whom. It will be DPT Vs DPT as the oppossition is only 2 MP’s and when it comes to majority – it will be DPT. No point doing that. In my view – The Finance owned corporate offices should follow guidelines of DHI salary structure which I believe is going to be independent of the government guidelines.

    Additionally, there is going to be no live telecast of what happens in the NA and how will the public gauge whether they are discussing is sensible or not.

    • The issue will be debated between DPT and PDP, and not among 45 Vs 2 as you pointed out. The two member opposition party will put up a good fight, i am sure. For they are men of substance and NOT PROVERBS.

      • Well Sharu, I like your optimism but I can simply wish them luck. Often the wise words of the men of substance goes through the deaf ears of the majority DPT. Perhaps DPT wanted to shut off the viewers from listening to the men of substance by banning NS session live coverage.

        WHERE ARE WE HEADED……….

  3. Honourable OL,
    Thanks for expressing your opinion on corporate pay revision proposal. I agree 100% with the honourable OL . Yes, for DHI owned companies, let DHI issue a broad guideline and let individual board approve it. Similarly, for Government owned companies, let MOF set a broad guideline and respective board fix/approve it.
    However, it cannot be said as “guideline” if you mention everything like u can’t have 5 % or 10% or 15%….It should rather be based on the number of hours you work, increase in revenue/cost ratio over the years, total revenue, total profit, service delivery efficiency etc. For non profitable companies, it should be segregated between commercially viable ones those that are totally social service. For instance, post office in Thimphu and Phuentsholing are commercially viable whereas those post offices in Sakteng, Merak, Laya, Lunana are totally for social service. So these two should be segregated and if possible give subsidy. Otherwise, judge on how they are performing over the years in terms service deliver, no of customer etc.

  4. Imagine a postmaster carrying just one 10 Nu. stamped letter to Gasa from Punakha. At first glance we would be concerned of the expenses he has to be paid to make this delivery. Forget profit, it’s a total loss-generating practice. Yet these postmasters are bound by the interest of public services. That one letter will be bringing smiles to a large family member. Unfortunately Finance Ministry cannot convert smiles into money so apparently they cannot afford to be a spendthrift on corporate salaries or allowances.

    I am actually dying to know the actual work-out by FM on how they came to 15% increment for corporations. How much the country coffers have benefited by this? Where does the govt. see these corporations after 5 years? Is the ministry happy about this decision? Was motivational factor for corp. employees ever taken into consideration? I am sure it wasn’t a one man show who worked out, taking a pen and a calculator, overnight to come to this final inference.

    It may have been a perfect mathematics, but then it’s not the lone subject influencing the lives of these corporate servants.

  5. why should the government set the salary for the corporate sector? government should only set the minimum wages / salary to ensure dignified and acceptable lowest standards of living and to prevent exploitation but leave the upper ceilings alone for the market to decide.
    pay peanuts and you only get monkeys! our still evolving corporate sector cannot afford to be strangled that way.

  6. Ask Kapil sharma of MOF. He should be the one who does all these shitty works of lyonpo.

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