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Re: Paid not to go to work (weather)

On Mon, 9 Feb 2009 00:40:15 +0000, Ste <...@hotmail.com

On 8 Feb, 20:50, Old Codger <...@anyoldwhere.net
I'm reading the Times today. As it says, if we exclude the Sir
Humphreys, the average civil servant over the long term has been on a
substantially lower wage than they would have received in the private
sector for equivalent employment. That is in accordance with my
understanding.

In that most people do not change jobs yearly. While the "average"
wage in the private sector may go up and down with the economy, Civil
Service pay will remain constant because it is not subject to the
variations in the market. The level of remuneration that Civil
Servants receive must be compared to the private sector over the long
term, not just over the past 5 or 10 years. It is meaningless to
compare pay at a time when the economy is in the shitter and therefore
private sector wages are lower, when during the boom times in various
industries private sector workers will have been earning 4 times what
Civil Servants were earning for the same work.

I think what really motivates these attacks against the public sector
is that old chestnut of the Right: envy. The problem is, instead of
private sector workers fighting to secure reasonable pay and
conditions for themselves, they have extolled the virtues of the
market and now it has hurt them they complain about the relative job
security and "high wages" of the public sector, when those in the
public sector have for many years (of their whole working lives)
tolerated wages far below that in the private sector.

No, I mean benefits increase with long service, which was the promise
made to Civil Servants at the outset. And again, I simply reject this
statistical comparison of "average" pay. To most people, the "average"
worker is not Sir Humphrey, it is for example the frontline workers in
a Jobcentre, and most making an objective assessment would say such
public sector workers today are overworked and underpaid.

That is only true if you accept the need for a private sector. I
don't. The bosses are not "wealth creators doing a public service",
they are leeches lining their own pockets at everyone else's expense.
This fundamental tendency has been shown with the bankers who have not
only gone some way to making whole nations bankrupt, but are
continuing to collect huge salaries and bonuses even now because they
believe themselves to be "talented" people.

There can be jobs, salaries, and taxes without profits. Ancient
society did rather well without bosses who "invested" capital and took
"profits".

You mean mean average, or median average, or modal average? Unlike you
some of us actually know something about statistics. It is true that
you can prove anything with statistics, provided the audience are not
statisticians.

And what I will also say is that by "average", most people mean
instinctively think you refer to the "mean". When one starts using the
median and modal as "averages" in political debate, it is almost
always to deceive the listener.

Let's face it Old Codger, you're a twister. So far we've already
established that you're excluding those private sector workers for
whom "the sky is the limit", and now you're not even clear what
average you are using. And to boot, you're making the comparison in
wages only in terms of the last 5 or 10 years, not the last 30 or 40.
Honestly, it's like something out of Blackadder.

It's completely disingenuous to suggest the origin of all wealth is
the private sector. The private sector doesn't lay any golden eggs. It
is the workers who create wealth whether they be in the public or
private sector; but from your perspective it may be more helpful to
see the state as the "parent company" of all others, and tax-money
passes up to the state the same way as profits pass up the ownership
chain in ordinary companies.

For you planning of the economy is "dictatorship". For most people,
the statement that "we're going to build you a hospital, and we're
going to build it well" is not dictatorship, it is giving the public
the very thing it wants and needs. And by the same token, the
statement "we're going to clean this hospital, and we're going to pay
good workers to clean it well" is also not dictatorship, it is giving
the public the very thing it wants and needs.

Let's face it Old Codger, the free market is never shown to work over
the short term or the long term, except for a minority of people who
get rich while caring not for the people they hurt in the process.
Every time "rational self-interest" is put at the wheel, the results
are akin to putting a small child at the wheel of an automobile:
you'll get so far if you start off straight, but you're sure to leave
the road at the first corner.

And there is a logical explanation to this. The drive for "efficiency"
means, in practice, the honing of the business process to the specific
circumstances and task at hand, and the removal of any costly
redundancy and robustness inherent in the system - that is what
"efficiency" is. The problem is, such a system is fragile, and when
the "system" is our whole economic system on which people rely for
survival, it looks short-sighted in retrospect to have made the system
so "efficient".

And to go back to the hopsital analogy, all the private sector
enterpreneur sees is an opportunity to use half-strength bleach, and
pay a Filipino immigrant tuppence-happeny, and take a cut of the
"efficiency savings" for himself, while in reality we are all now
shouldering the increased risk of death by infection in dirty
hospitals. And of course, the same enterpreneur will say "our cleaning
services have 99.9% satisfaction", while 0.1% of patients die of MRSA.
When we apply these "efficiency savings" system-wide in the economy,
you're constantly taking a 0.1% cut out of the health and satisfaction
of the population, and people must constantly respond to these
failures of the system, like repairing a rusty hull that is constantly
springing leaks.

I think that's called "confirmation bias". And the point I'm making is
that wages in the public sector can appear higher, if indeed they do
appear higher on close inspection of these statistics, for all kinds
of reasons other than that the public sector worker is being paid more
than a private sector employee for the same work.

That's the whole point! How can you constantly manage a person who is
trying every possible way to swindle you? That is *why* the Civil
Service prefer long-term commitment and loyalty, because they don't
want people constantly trying to swindle the most money for the least
work, they want people who act *morally* in the interests of the Civil
Service and therefore the public at large.

But that is anathema to the whole concept of having *private
enterprise* run the operation and derive a profit. If the public purse
has to support the thing because it cannot make a profit, then what
the hell have you got shareholders for, and more to the point, why did
you privatise it in the first place?

This is what I mean about private enterprise being like a child at the
wheel. Ideological free-market capitalists are constantly having to
react to painful experience by making sure the vehicle "hits the
ground running" as it were, and that there are ruts in the road that
naturally guide the wheels, and that there are buffers and crash
barriers to keep the vehicle on the roadway, and such like. But the
real question again is why are you putting a *child* at the wheel, who
doesn't know what's good for himself, and certainly doesn't care about
what's good for other people.

Ultimately, a "contract" with a private company is designed to act as
a railroad so the "child" driver does not really need to drive the
operation at all. The problem is that anywhere the tracks are weak or
missing, the train naturally comes right off the tracks. Or, if the
tracks are laid to somewhere other than it's intended destination, the
train simply speeds past in the distance, and you don't achieve the
goals of the operation.

What year are we talking about here?

Any pension fund is reliant on future employees! If you do not realise
this, then you honestly know nothing about the matters in which you
clearly think yourself expert. Let me ask you, where do you think the
return on investment comes from, and the goods and services that it
buys? Do you think "investment returns" come about by sexual
reproduction?

Och!

This is obtuse. The taxman can just as easily make "investments". That
he does not currently tend to do so in any significant way (at least
if you ignore the banking bailouts) is a function of the present
administration's ideology.

A mistake on Gordon's part, then. Still, if he wishes to raise
taxation, he is constrained politically in how he can achieve it - I
expect he would have preferred to simply put up income taxes. Anyway,
I've said I'm not here as an apologist for Brown - he is fundamentally
continuing the liberal economic policies of the previous Conservative
administration, and by claiming responsibility for the economy he is,
like the Tories before him, exposing himself to criticism when the
economic contradictions cause mayhem.

The private sector may pay the bills at this present time. The public
sector always has the option to make its own investments, however.

I never said I was a public sector employee. And as you recognise,
even a "good" boss is forced to extract some profit, and unfortunately
competitive market forces tend to favour the "bad" bosses who extract
maximum profit.

Indeed.

The company doesn't have to be small, it merely has to be weak. And
you must surely concede my point, then, that the pensions failed
because the businesses behind them staked their pension pots on the
continued success of the business (either by investing the pots
directly in the business, or underfunding the pots and instead "making
up the deficit" day-to-day).

All I know is many pension funds have gone bust because the employer
company was the main or significant investment of the pot. I think
this was generally done with the worker's consent, but then what does
the man on the street know about pensions and economics.

The private sector, "largely the financial services industry", has
gone some way already to destroying itself. The public sector may, for
ideological reasons, spend far in excess of its own returns on
investment, the shortfall made up by taxation. Fundamentally, though,
the public sector is not dependent on the private sector, any more
than a mobster is dependent on a protection racket as opposed to
investing in his own businesses.

Well, that was a marathon post.



On Tue, 10 Feb 2009 13:50:11 +0000, "tim....." <...@yahoo.co.uk

"Ste" <...@13g2000yql.googlegroups.com...
On 8 Feb, 20:50, Old Codger <...@anyoldwhere.net
I'm reading the Times today. As it says, if we exclude the Sir
Humphreys, the average civil servant over the long term has been on a
substantially lower wage than they would have received in the private
sector for equivalent employment. That is in accordance with my
understanding.

In that most people do not change jobs yearly. While the "average"
wage in the private sector may go up and down with the economy, Civil
Service pay will remain constant because it is not subject to the
variations in the market. The level of remuneration that Civil
Servants receive must be compared to the private sector over the long
term, not just over the past 5 or 10 years. It is meaningless to
compare pay at a time when the economy is in the shitter and therefore
private sector wages are lower, when during the boom times in various
industries private sector workers will have been earning 4 times what
Civil Servants were earning for the same work.

-------------------------------------------------------------------------------- -----------------

I think that is a ridiculous suggestion. You have already excluded the
Humphries from the equation. The idea that an "administrator" in the CS on
20-30K a year have peers doing similar work in the private sector on 80-120K
is utter nonsense. 10-20% more perhaps, but 300% more never!

tim


On Tue, 10 Feb 2009 19:40:50 +0000, Ste <...@hotmail.com

On 10 Feb, 13:50, "tim....." <...@yahoo.co.uk
I'd say there were blokes 10 years ago in IT who were earning in the
private sector 4 times as much as a Civil Servant would have been for
the same work. Also, bear in mind that almost everything except
"administration" has been transferred out from the CS to private
enterprise.

On Tue, 10 Feb 2009 20:25:20 +0000, Tim S <...@dionic.net

Ste coughed up some electrons that declared:

That is true.

I was doing IT for the DWP (then the Dept of Employment/Employment Service
agency) London+SE Regional Office prior to 1995.

I was graded as an EO (on temp. promotion - general promotion ban in force
then) - same as a JobCentre section supervisor. When I left (due to the
complete and utter waste of taxpayers money, known as "market testing") I
did nothing but better my salary and career for the next 10 years. To be on
parity with my last London job (a university) I'd need one or two points
into the Grade 7 scale. Probability of someone like me progressing beyond
HEO is zero (I'm not a "people skills" person - I do engineering things and
nothing but).

Given there was a strong possibility of people like me in the CS being
booted out to work for EDS and their kin effectively nullified any sense of
job security. But the pension and the personnel rule book were very good -
both things the private sector would do well to aspire to.

I think there did used to be a sense of pride in working in the state
sector. I would not feel the same sense working as a subcontractor, which
as you say, is where a lot of the work is done now.

Cheers

Tim

On Wed, 11 Feb 2009 21:50:20 +0000, Old Codger <...@anyoldwhere.net

Responding to ste's post of 9 February:

As I said in my previous post, this is well off topic and although
probably a waste of time I would have one more go. How right I was, it
was a waste of time. However, one paragraph in particular of your
response really highlights your lack of knowledge on this subject and so
puts your other comments into context that I feel compelled to respond
to that paragraph.

Since I am responding I will give a general response to some of the rest
of your comments.


Hmmm,

------------------------

The Civil Service is relatively generous in these circumstances. While
starting wages are pitiful, and remain relatively low throughout your
career,

Old Codger responded with:

Hmmm! Whilst that used to be true, many years ago, it hasn't been true
for some time. Last year the average public sector earnings were £522
per week, against £460 for private employees.
(http://www.dailymail.co.uk/news/article-1134490/Pay-apartheid-public-private-se ctor-workers-grows-50.html)

-------------------------

So it is clear that I was discussing last year's pay differential. In
response to you I subsequently gave figures, from the same article
indicating the pay differential, in the public sector's favour, going
back to 1997, thus indicating that the public sector has had average
earning supremacy for many years. I suggested excluding the very
highest paid private sector workers because including them minimised the
public sector pay supremacy for the average worker.

It is clear we were discussing the pay differential in relatively recent
years. I had already readily agreed that years ago I would have agreed
with your statement.

Who is twisting?


Reference please (I gave a reference for my statements), I have looked
and I cannot find anything in the Times on line to support your
statement. I can find a number of letters from civil servants claiming
their pay is low but no authoritative article supporting your statement.

I have found the following however, note that I give the references:

february 2009
The main reason the cleverest young people veered away from the public
sector was the pay. But since 1999 public sector pay has been going up
faster than the private sector. If you take pensions into account,
public sector remuneration has been rocketing ahead,

http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article5 627181.ece

January 2009
He (Brown) pushed up salaries in the public sector with little thought
for the additional unfunded pension liabilities created ...

http://business.timesonline.co.uk/tol/business/columnists/article5576686.ece

2004
According to the Association of Graduate Recruiters (AGR) Survey 2004,
the median starting salary for graduates on training schemes in the
public sector in 2003 was £20,000. This compares with an overall average
salary across both private and public sectors of £18,362

http://business.timesonline.co.uk/tol/business/career_and_jobs/senior_executive /article455257.ece

Those tend to support my views.

You also claimed that private sector average wages went up and down with
the state of the economy in order to suggest that it was unfair to
compare higher public sector pay "when the economy is in the shitter".

I submit that average private sector pay has not roared away in the good
time and retreated in the bad times. My experience, as I have already
said, is that pay has increased more or less smoothly. I don't know,
but could accept that your claim might be true for some specialised
sectors, such as investment banking but that has only a small effect on
the whole of the private sector pay.


Not for long though.


They did not live very long, in comparison with today. They did not
have much in the way of creature comforts. Without profits there was
little in reserve to see them through bad times. *and* They did have
bosses who extracted their tithes (Clan chieftans perhaps)


Hmmm, the whole of the western world is a free market and, in the main,
has been for the last 70 years. The one major economy that tried
another approach, the Soviet Union, has not survived and is becoming a
market economy. Even China is becoming a market economy. We will,
eventually, come through the current extreme turbulence and the market
will then re-establish itself. Market forces are the only thing that
works long term because humanity is basically greedy and looks after
number one, with a very few honorable exceptions.


That must explain why our private hospitals are so successful and
profitable and attract all those who can afford the insurance.

I note, and agree with your claim that the reason for the failures of
outsourced public sector services is that the public sector cannot
manage them. I think that many knowledgeable folk would also agree with
you. Strange that the private sector generally manages outsourcing
reasonably well.

Network
If you are thinking of Network Rail, it is not a private company and
does not have shareholders. It is completely funded by the public sector.

You ask why privatise an enterprise if the public sector has to
subsidise it. Very simple really, the objective is to reduce the
subsidy, improve performance and (probably unrealistically in relation
to the railways if fares are to be kept relatively affordable)
eventually remove the subsidy altogether. I think you will find that,
where they are still being paid, subsidies to privatised companies are
lower in real terms than they were when these companies were
nationalised. Generally the performance has also improved significantly.

With regard the telephones being part of the Post Office, and the poor
performance at the time, you ask what year. Pick any year in the 50s
and 60s, probably even the 70s as I am certain some waiting lists
continued through then. We all complain about BT and their poor supply
of ADSL but I do wonder if we would have got past dialup if they had
remained nationalised.


Of course they can. However, they tend not to be very good at it.
Politicians interfere too much which tends to destroy any small chance
the Civil Servants might have had.

British Rail, the car industry, the nuclear industry, all required
subsidy, there were no profits. Long term and more recently the health
service had had a fortune thrown at it but is still falling apart. It
is the efforts of the relative few at the coal face that enable it to
survive. Education, another area that has had money thrown at it and we
are still falling down the international league tables. The Dome. The
ever increasing estimates for the Olympic games. Do I need to go on?

I have picked just a few of your points to give a flavour of how much
you do not understand. Now I will deal with the paragraph that really
does show you up and which decided me to respond just one more time:


How do you think banks and building societies manage to pay interest on
your savings, or insurance companies fund endowments. A little comes
from folk mortgaging and other individual borrowing. The majority comes
from investments, which also have to pay the overheads of those
institutions.

Unlike the National Insurance Fund, private sector pension funds do
actually exist. Pension are paid out of the fund. The fund has to have
enough capital to pay the pensions of those who subscribe to the fund.
Actuaries periodically assess the performance of each fund against the
liabilities of that fund. This is a very specialist task. If the
actuary assesses that their are insufficient assets to pay future
pensions the company *has* to inject further assets to make up the
shortfall. The investments a fund can make a very strictly regulated
and only a very small percentage of the fund can be invested in the
company. If a company closes a pension fund it has to ensure the funds
assets are sufficient to pay *all* the pensions that have accrued. If
the company starts a new fund for existing employees, their assets in
the fund are either frozen, with regular (say RPI) increases or moved
into the new fund. Thus a private sector pension fund does *not* rely
on future employees to pay pensions from the fund.

As I have already said, in the event that an employer goes bust and
their pension fund is insufficiently resourced then a backstop fund
provides the necessary assets. This back stop fund is financed by all
private sector pension funds, so does not rely on the taxpayer, or on
future employees.

--------------

I note you intimated that you might not be a public sector employee. If
you are not, and your comments here accurately reflect you beliefs, I
imagine you meet with a few problems within the private sector.

I do hope you are by now a little better informed.

--
Old Codger
e-mail use reply to field

What matters in politics is not what happens, but what you can make
people believe has happened. [Janet Daley 27/8/2003]

On Thu, 12 Feb 2009 16:00:27 +0000, Ste <...@hotmail.com

On 11 Feb, 21:50, Old Codger <...@anyoldwhere.net
At the end of the day, I dispute your statistics - that is, I do not
accept them in any shape or form, and on the same basis I do not
accept that the "average" public sector employee is significantly
better off than the "average" private sector employee. And by "average
employee" I mean someone engaged in employment typically remunerated
at around £15-35k pa.

In relation to the Sir Humphreys on £1million a year, these are not
"average" employees, and I agree their pay should be cut, as should
MPs pay. As for private sector bosses earning "sky high" wages, we
should tax their arses off.

Please note if you want to post some more detailed research, which is
not related to the Daily Mail, then I'm always happy to discuss the
matter.

It has been "going up faster", having started significantly lower.
That doesn't even prove that the wages are level pegged yet, let alone
whether public sector remuneration has exceeded that in the private
sector.

Again, it is just pulling the wool over people's eyes using
statistics. Don't think that because I'm a Times reader I support
everything that is said in it. I mean where is the like-with-like
comparison when they compare "median starting salary for graduates on
training schemes in the public sector" with "overall average salary
across all sectors". How can anyone possibly think that anything is
proved with such a comparison.

That is one issue over which we fundamentally disagree.

Capitalism has existed for a few hundred years - they say one of the
places the capitalist class first came to be the ruling class was in
Venice.

There have certainly always been taxes, tithes, surpluses, and what-
have-you. But they were not "profits" - you're twisting the very
meaning of that word in order, I expect, to somehow explain that
"capitalism has existed forever". Most people did not reap and sow in
order to turn a "profit" and take goods "to market", they did it in
order to subsist. And while there have indeed always been traders and
speculators, these have never until recently been the ruling class in
any society. I would also note that there have always been some people
who have worked selflessly for the good of the group - but we do not
argue or insinuate that "socialism has always existed in one form or
another".

Greed and self-centredness is precisely why the market doesn't work,
and I would remind you that more people have died in war in the last
100 years, than have died in every other war in human history.

If the NHS received as much per person as individuals pay for
comprehensive private healthcare, you're right, there'd be no problem
at all with the NHS.

Probably because the private sector proper is not generally dealing
with some hard-to-quantify "public service", where the money comes
from the state, but the service is enjoyed by the public. Letting
market forces reign in such a situation just allows the company to
swindle as much from the state, while strangling the service provided
to to the public "customer". This is because, the state has no direct
perception of how well the service is operating, and the customer has
no direct method of punishing poor service, so there is no effective
feedback mechanism on the behaviour of the company.

I recall British Rail having regular services and cheap fares. There's
not much good to say about British Leyland, except its problems were
largely caused by poor industrial relations. BNFL and what-have-you
never made nuclear profitable as a whole anyway as far as I know. The
NHS has been underfunded and mismanaged for donkey's years, and
continues to be; education is no different. The Dome as I understand
it was one of Major's projects, and of course involved the private
sector. And the Olympic Games, well again that involves the private
sector who put no contingency funds into their bids.

And where do you think the return on investment comes from? It's by
extracting value from the current workforce.

That's why I prefer to work for myself, and earn a much better rate of
pay.

Not really. The fundamental differences still exist: I say "average"
public sector wages are lower, you do not; I support a planned
economy, you do not.

On Thu, 12 Feb 2009 19:10:11 +0000, Don Aitken <...@freeuk.com

On Thu, 12 Feb 2009 16:00:27 +0000, Ste <...@hotmail.com
But not on here. Any further contributions to this thread that come to
me for moderation will be rejected as "off topic" and/or "insufficient
new material". Any extended discusssion between people who don't know
how to snip will risk rejection on the latter ground even if on-topic.

--
Don Aitken
Mail to the From: address is not read.
To email me, substitute "clara.co.uk" for "freeuk.com"

Discussion Title: Re: Paid not to go to work (weather)
Title Keywords: Paid  work  (weather)