Friday, April 25, 2008

Salary

EW points out that the people in our canteen are grossly underpaid - hence explaining the poor quality of the food.

Of course both phenomena are true, but I suspect their relationship is slightly more complicated.

Why are the workers in our canteen poorly paid ? That's because their boss needs to squeeze down the budget when bidding for the contract - and money is the only factor that our hospital board, who themselves do not lunch here, consider.

No, it is (by and large) not a problem of relative monopoly in the hospital setting. If front line staff are allowed to choose the canteen (i.e. decide the contract), the quality would be more acceptable - otherwise the owner would lose the contract next time. The price would go up a bit - to cover a higher salary and also better quality of the food. That higher salary is needed for better employees - or, more likely, incentive for the same ones to work better.

Now, you see: the low salary bit cannot be done away by a simple government policy. If we put up a law to enforce a minimal pay, there would be fewer staff (i.e. more unemployment, and the canteen would become more dirty) and the quality of food would further deteriorate
- if it is at all possible.

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