Context (with apologies for being long winded; I don’t have the time to write a short post):
There are a few posters here who used to work in large multinational and now work in the public sector. I am sure that the skills they brought from their former employers are very useful in their new roles and, from the quality of their posts here, I am sure that they are intelligent and capable people. The question I have concerns the tendency that have to compare their current pay and more specifically their terms and conditions to what they enjoyed while employed by large multinationals.
Given that this is a high cost economy large MNC’s base high value add operations here, basically we are near the top of the value chain. Therefore is it reasonable to deduce that a considerable amount of value has been added to whatever product or service (or most likely a combination of both) that the Irish operation is involved in by an operation or operations in a lower cost economy.
So wages in the Irish operation are sustained not only by the value added/created here but also by what has been added elsewhere. That position in the value chain allows high wages to be paid. The same is not the case with the public sector where wages are paid using the taxes generated in the domestic economic.
So the question; Should public sector wages and terms and conditions be closer aligned to what is enjoyed in the SME and general domestic economy since that is where the majority of the taxes that fund them are derived from?
There are a few posters here who used to work in large multinational and now work in the public sector. I am sure that the skills they brought from their former employers are very useful in their new roles and, from the quality of their posts here, I am sure that they are intelligent and capable people. The question I have concerns the tendency that have to compare their current pay and more specifically their terms and conditions to what they enjoyed while employed by large multinationals.
Given that this is a high cost economy large MNC’s base high value add operations here, basically we are near the top of the value chain. Therefore is it reasonable to deduce that a considerable amount of value has been added to whatever product or service (or most likely a combination of both) that the Irish operation is involved in by an operation or operations in a lower cost economy.
So wages in the Irish operation are sustained not only by the value added/created here but also by what has been added elsewhere. That position in the value chain allows high wages to be paid. The same is not the case with the public sector where wages are paid using the taxes generated in the domestic economic.
So the question; Should public sector wages and terms and conditions be closer aligned to what is enjoyed in the SME and general domestic economy since that is where the majority of the taxes that fund them are derived from?