Friday, 27 January 2012

Local Government CEO's may form Industrial Union...

Who said Pigs can't swim. 

The following was sent to me by a most unhappy CEO, I can not name him or her for obvious reasons. This use of the power of the market place process makes for interesting possibilities in future salary setting processes. What it means is that services of CEO’s will be driven down ward rather than upward.

Dear X,

X City Council is planning to advertise for a new Chief Executive Officer under this process:

Our new policy and process of using the market to decide the rewards for a new Chief Executive Officer position is as follows:

  • We will be calling for tenders from individuals who believe they have the skills required and are willing to accept a figure less than that stated below.
  • The key entry point will be based on an individuals’ tender figure which must be below the present salary level of $535000.00 per year.  
  • Applicants need to clearly state a figure below that stated above to be considered for an in depth interview.
  • Those who state a figure below that listed above will automatically have a head start on those who tendered a higher figure than yours.
  • Applicants will be listed in interview order from the lowest tender up.
  • No tender will be considered if the figure suggested is below the government minimum legal figure which is currently $13.24 per hour x 40 x 52 per year. This figure is considered by the government as a livable salary.

We believe that by using this tender process we will over a short period of time lower the massive salaries being paid to local government CEO’s and thereby reduce the strain on rate payers who are required to foot the huge salaries being paid at present.

It will also save ratepayers from the huge fees that are being paid to various search organisations which are paid on the bases of a percentage of the salary agreed to.

We also believe that this is the way the market should work for all those who receive rewards for standard tasks in the management field. Of course it is presently used for the purchase of all service and we consider that the role of a CEO is a service role.

If CEO’s are willing to register themselves as a collective [Union] our council is willing to accept negotiations on their behalf by their elected representatives so long as they comply with the Industrial Relations Act and the requirements listed above.

This policy will come into effect once the Government appointed watch dog has agreed and confirmed his agreement. Once introduced the ability of councillors via their councils to offer salaries to their one employee [the CEO] will cease.

CEO’s will be expected to follow this process for all positions outside of those presently regulated by agreed collective agreements.


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