Taking a page from the Tri-partite book of Barbados, the incumbent government raised the notion of "excessive profit." Profit can be justified as a reward for entrepreneurial effort but is distinct from gains arising from immoral and unethical practices. It is a reward that takes into account unequal risks.
An energy sector engineer has more personal risk than his manufacturing counterpart and part of his pay reflects that. The same should hold true for business profits. What is just is determined in the court of public opinion; it is not a private matter.
Modern economics has assumed a non-ethical nature. Gordon Gekko may be the Hollywood poster child of greed but our local probably is CL Financial. Dr Balgobin speaks of the rise of "tenderpreneurs" under the last regime: people who gain from non-business related skill or risk. Such actions cause distortions in the local economy, for example, the skyrocketing grocery and drug prices in recent periods.
While self-interest is a fundamental assumption of economic models, greed stimulates, rather than satisfies, and unleashes a vicious cycle of extravagant insatiable desire.
The goal of maximising self-interest frees individuals to steal and cheat as we are now discovering to our detriment. It encourages waste and reduces our ability to be competitive. It reduces the value of most people.
Different conditions require different pricing/profit scenarios. An unchecked drive for more profit may reduce our competitiveness. The costs are shifted from the owners of capital to the workers and are postponed to be paid by future generations.
There are three seminal studies done in Jamaica, but applicable locally, which speak to the reasons why workers do not work locally but perform superlatively in foreign countries. Colin Palmer speaks to the historical 1930 conflict between Governor Denham and Bustamante; a tale of denial of appalling work conditions and poverty.
Carl Stone in 1982 did a Workers Attitude Survey which found that productivity losses matter: a 50 per cent drop in 25 years. Kenrick Carter in 1987 confirmed Stone's findings; only 24 per cent of workers were motivated.
The common thread is that a significant share of responsibility for workers' attitudes lay at the feet of management with their "do as I say, not as I do" attitude. Job satisfaction is correlated with productivity as is work effort with the quality of management and leadership example.
Poor physical conditions and sloppy HR practices coupled with rewards for gossip and not hard work lead to lethargy or vehement demands for increased wages. It is not the Carnival spirit to blame.
To build trust and confidence in the local economy one has to dialogue and develop shared values. Indira Gandhi said "You can't shake hands with a clenched fist." Both business and labour have to understand this. Government itself is not merely a referee in this instance since their own labour practices, as the largest employer, leave much to be desired.
Noble Philip,
Blue Range.