Friday 7 March 2008

Leg Co: ..On Unemployment

I don't know whether to laugh or to cry when I read the reports (in the newspapers here and here and here) of the Leg Co Session today. It was quite disappointing really because there was nothing new. One minister asked the private sector to hire the locals, while the other asked the locals to work in the private sector. I have no problem with both suggestions. But I fail to understand why no minister was addressing the root of the problem, which to me is the remuneration gap in the public and the private sector.

The gap is huge! To know someone in the public sector, who has the same exact qualification with the same skill, is paid triple the amount one is getting in a private sector is really demotivating to anyone. I don't know about you but seriously somebody has to address this issue. As I said in my previous post it is not enough (and equally unfair) to ask the private sector raising their pay rate to the locals due to several reasons. First, our private sector consists largely of SMEs. Second, our SMEs are weak as highlighted by the Minister of the MIPR. And third, the productivity and the commitment of our locals are not exactly commendable.

Now, in my humble opinion it is inevitable and imperative for the government to intervene. Either reduce the remuneration scale in the public sector and/or prop up the remuneration in the private sector. My preference goes to the latter as I believe it would have a larger multiplier effect to the economy. Perhaps take this idea as some sort of 'employment' benefit as opposed to the 'unemployment' benefit. If you are thinking, more government spending and where can we get the fund to do this? Now, I think there is even a stronger need for the government to review the subsidy (especially the fuel subsidy :) Plus, I also think that the government would actually save by spending only some fraction supporting locals who work in the private sector as opposed to employing these locals in the public sector. And of course the direct effect it has on the private sector itself (as compared to the reduction of the corporate tax! No, I'm not going to make any comment on this one) It's a Win, Win situation, No?

With regards to the mind-set problem and the attitude of our local workers, I think the issue is not exclusive to the private sector. I'm sorry..but look at out public sector's employees! I honestly wonder how can you expect the locals to be in their best behaviour in the private sector which pays considerably less when those in the public sector are having the time of their lives and being paid more. And that is why I also think it is equally imperative for the public sector to practice a more realistic productivity-linked wage system.

Oh Well, I'm just in my own world and who am I to say. I don't even know why I'm racking my brain for this.

Salaam

4 comments:

Anonymous said...

I am busy BUT I must write because I TOTALLY agree with you, Hjh!! To be honest with you I wish these LegCo sessions are like those in the parlimentary debates in England or anywhere else when the parliment system is more established. I wish there are opportunity for supplementary questions where Ministers are required to answer questions on thier feet and NOT prepared answers!!

I agree with you regarding the BIG gap between public & private! Government MUST do something to encourage job seeker to private sector employment!!! I want to laugh as well when somone suggest BIGGER bonus for public servants!!! for WHAT??? make more job seekers waiting for public jobs?????? or for public servants who do NOTHING but long tea break, leaving office to pick up kids at 11.00 am &/or 3.30pm and never come back!! bonus for them??? no way! even the appraisal is a laughing stock! how can you depend on those grade for bonus when most appraiser do not do the job properly because they do not want to handle "riots" if they dont give the propoer grade for bonuses as all public servant feel that the 13th month salary (bonus) is their entitilement!! performance bonus? - well can public servant do it???? big question when we have difficult to differentiate bewteen friens, relative and professional workers!! GOT TO GO! You take care & study hard! We are waiting for your return!!
from Kulikang

baz said...

in singapore, i know tht the private sector is the one which pays the big bucks, their problem is to get ppl not leave the govt!!! as leekuanyu said "revolving door"!!!

anyway, in my humble opinion, i dunnow why the govt was rushed into withdrawin the pensionble scheme, coz when the private sector takes off with a bang in the far flung future, who knows we might be even worse than singapore when it comes to the quality of govt staff... so we must think of a way how to balance ths thing..

Anonymous said...

Sorry but I seem get the impression that much of the blame is on the govt regarding this issue. It's always no win for the govt cos wasn't it us who wanted the good cushy govt salary, the tambang bonuses, the inservice training, etc. All so we can have a wonderful debt-ladden lifestyle...

Personally, I'm glad we have some revision of the corporate tax as some "dutiful" companies will benefit from this. But I really hope that these shareholders think of progresive ways of investing these tax savings, (instead of lining their pockets).

My bet is that the govt is hinting that these companies should use these savings to invest in its people (hire more or rise salaries), or invest in the company (new investments etc). but please, no more new additional donations hahahaha

Anonymous said...

I know this humble post of mine is out-of-date but I just want to share my own personal experiences to indicate how vast differences are between BSP-GOV'T-BSP-SME-MNC-SME-SME in terms of basic pay and fringe benefits, remunerations, etc

Like your goodself, I came from a very poor family although I could consider myself to be amongst the 'cream of the crop' during my foundation years of 'free Gov't' education save for flunking my 'O' Levels big time! But in my younger hey days, the vocational training scheme provided by Brunei Shell was a real life-saver (if not I could have committed "Harakiri":). However, these days, I can't help pitying our younger generation (although much more intelligent than their parents and elders) who are being deprived of better career-building support, post-'O' Levels or even post-first degree attainments (particularly general).

So here is a cross-sampling of my pay packets having been a "coolie kang" for donkeys of years:

Toiling under hot sun (rain or shine) for construction work:
BND15 per day from 7am - 6pm
(About $375 per month & no perks)

Hotel front office receptionist:
BND11 per day i.e. 8 hour shift
(About $275 per month & no perks)

BSP Training to be a Technician:
BND800 per month + shift & housing allowances (About 1,100 per month)

Government civil servant:
Division 3 Salary scale C1-2 EB 3
(About 1,200 per month + fringe benefits & annual increments with a one a half bonus at year's end)

Brunei Shell SSS & SS staff:
(Starting from BND2,100 + many perks & 2 months' annual bonus but after 3 promotions & 4k take home pay, decided to be self-employed.)

SME as a no-capital entrepreneur:
BND0.00

MNC contractor as Admin Officer:
BND3,000 (minimal perks & benefits)

SME as Administration Manager:
BND1,500 (no perks & benefits)

SME as 'multi-tasking' Manager:
BND2,500 (no perks & benefits)

My point is no matter how much experience a "coolie kang" may bring with him/her to any SME organisation, never expect to get preferential treatment unless you have a First Class Honours degree and a Master's like the local freakanomics rogueeconomist Philosophical Doctor-to-be...;)

Beggars like us can't be choosy:(