Work and Salary Expectations

[Guillo]

Ok, so the way to keep your employees happy Citigirl, is to tell them to stop worrying about their paycheck, think about the company and vote for a different government so you can have an easier time paying less to them than you would pay someone in your home country. That will resonate well with them .

JB5, about the viability of your business... if it depends on having cheap labor, you might need to relocate somewhere else and try to find the same expertise you found here. Perhaps you should also do your due diligence and research about the country before establishing here. The point I'm trying to make, is that I'd rather have someone hire me because of my qualities and what makes me special, and not because I'm dirty cheap. And I prefer to attract THAT kind of companies, those that will value our qualities. Like companies that decide to install here even knowing how things are, because it works for them.

On the other hand, I totally agree on the market forces approach. But I also know that capitalists , by themselves and left unchecked, have no morals, and will try to maximize profit, with total disregard for anything else.

 

[fifs2]

On the other hand, I totally agree on the market forces approach. But I also know that capitalists , by themselves and left unchecked, have no morals, and will try to maximize profit, with total disregard for anything else.[/quote]

I`m actually a capitalist with a conscience who favors salary increases and benefits over profitability...please don`t tar us all with the same brush.

 

[GuilleGee]

That's certainly not the case for someone that is on a salary of 5-10k pesos a month and, after a couple of years see 50% of their salary banish because of inflation.

Jeez, inflation really must just be an invention if the middle class who are earning 5k pesos & up are the ones complaining about how tough inflation makes their life.

Just a joke obviously, as inflation definitely does effect me and I make much less than that, but interesting to put things in perspective.

Edit: To keep this reply on subject, I completely agree that workers should only receive raises if they have done hard work & helped their organization grow to deserve it.

I would definitely love to get annual raises that were on top of inflation-adjustment but if I choose to not work for myself and not be the one running the company I don't expect it.

 

[Guillo]

I`m actually a capitalist with a conscience who favors salary increases and benefits over profitability...please don`t tar us all with the same brush.

Glad to read you are! I hope you also get good karma for doing it.

 

[jb5]

With all due respect Guillo, you'll have a very long wait before a foreign company sets up shop in AR because they are looking for qualities they can't get elsewhere that are not cost related. If Argentine labor cost as much as US or EU labor, citygirl's company and many, many others would be gone overnight.

It is a shame you have such negative views of business owners. I've not spent enough time with native business owners in Baires to know if your belief is justified by their behavior. In my experience, smart business people do well by treating their employees well. It's a win-win. But employers who can not give 30% raises are not treating employees badly. I've never heard of that level of raise in any other country. Again, it's simply unrealistic that the vast majority could give these raises and remain in business.

I like the idea of stock options, and have successfully used them in several countries, but frankly, based on your other comments I'm not sure if that would be a successful approach. They don't address inflation in the near term, so why would that be attractive?

 

[elhombresinnombre]

What happened to all the worker-run businesses that appeared in response to 2001/2002 when companies had failed and the workers took over the buildings they had been in and continued to run them? Are many still going concerns? Are there other cooperatively-run businesses people know about? I feel it would inform this discussion to learn what sort of decisions are being made about price hikes and wage rises in organisations where the people who work there are collectively responsible - both for their own immediate standard of living and the long term survival and growth of the company.

Just bumping this up again because I think mutualism is interesting - especially in enormous, successful organisations like the John Lewis group in the UK. Anyone: does Argentine company law permit rewarding employess with company shares? Citygirl: would/could your company reward its employees with a stake in the firm so that the better the company (ie, the employees) performed, the more they would benefit?

 

[agua]

Couldn't businesses just set salaries in US Dollars or Euros and than just pay it in pesos at the current exchange rate on payday?

 

[perry]

Couldn't businesses just set salaries in US Dollars or Euros and than just pay it in pesos at the current exchange rate on payday?

There is no difference in th inflation rate atm between dollar nominated pay structures or peso . The inflation rate in dollars is over 20% per year .

 

[Guillo]

It is a shame you have such negative views of business owners.

I felt the it was the other way around. I was trying to explain why employees are not happy. And it was all about their standard of living and what their expectations are. And the unrealistic expectation that the employees will just push someone else's business for gratitude without thinking about getting fair reward for it.

I've not spent enough time with native business owners in Baires to know if your belief is justified by their behavior. In my experience, smart business people do well by treating their employees well. It's a win-win.

I've been around a bit and I've probably haven't been the luckiest. But the type of businessman in baires are nothing like what you describe.

But employers who can not give 30% raises are not treating employees badly. I've never heard of that level of raise in any other country.

I didn't say they were. I was saying that getting inflation costs mean nothing to them, and that's why they are not happy and say thanks. Actually, with increased "Impuesto a las Ganancias" people make even less than before.
Its a shame what they are doing with all the stats.

Again, it's simply unrealistic that the vast majority could give these raises and remain in business.

Remember you are in an economy with 30% inflation. Its not the same to what you are used to.

I like the idea of stock options, and have successfully used them in several countries, but frankly, based on your other comments I'm not sure if that would be a successful approach. They don't address inflation in the near term, so why would that be attractive?

Because it would be something of expected value and their best interest to succeed.
Not for everyone, but probably for the people you would want to hire.

 

[John.St]

You may think of an employee as a person who is selling her or his working hours.

As long as you can sell above cost you are satisfied. If the the price reaches cost, you are no longer happy and if you (because of inflation) are forced to sell below cost you are unhappy.