One of the corollaries or supporting ideologies behind Neo-Liberalism is the cult of Management.
The idea that individual shareholders, managers or directors are the main contributors to the success of a corporation, and thence the economy. And deserve the greatest share of the rewards. The jobs and income of all other employees and State servants is a generous charitable gift from these people.
Except, maybe in the case of genuine entrepreneurs, we all know this is not true.
Many corporations and State or private enterprises run despite management, not because of them. In fact, the constant parade of new brooms trying to make a name for themselves, with rapid changes and cost cutting, cause competent staff to resign and demoralise the rest.
Many times, within a company, when you want the person who get things done. You ignore the suits staring out the windows in the corner offices and talk to the person, usually a women, who actually does things. Normally someone several pay grades below the suits. Or when you are ordering something, the bright well dressed manager calls some wizened old guy from the shop floor to ask if it can be done.
The corporations with the largest income gap between Directors/Managers and employees have proven to be the least functional.
The star managers paid in millions have proven to be much less effective than, lesser paid, experienced promotions from within the organisation.
Outsiders are typically good at rapid cost-cutting and divestment, but over time, those opportunities tend to dry up.
Highly paid directors have led many corporations into oblivion. Enron, SCF, Hanover and many others.
The highest paid of all, financial managers, destroy at least 7 times as much wealth as they create. Which makes them parasites, getting wealth for themselves by destroying more of others’.
We are so bamboozled by the cult of management we made one of those Prime Minister.
At the same time, corporations decry the decreasing loyalty of other employees while they reduce the pay and responsibility they show towards them.
This all comes from the Neo-Liberal idea that those who work for others are somehow being charitably given jobs.
The fact is all the overpaid managers, greedy directors and parasitic shareholders could not even live, let alone have fortunes without the efforts of cleaners, technicians, plumbers, lath hands, secretaries and rubbish collectors.
People who do productive work more than earn their pay. They contribute much more in relation to their income than those at the top.
Unions and, once upon a time, Labour helped the rest of us towards getting our fair share of the wealth we produce.
Past time Labour decided they are not national lite and repudiated the entire Neo-Liberal canon of faith. They should not be just another vehicle, like National, to transfer wealth to corporate parasites.
Stop the waffle (Thanks QOT) and shooting themselves in the foot and come out strongly for New Zealanders.
Then they may get back the votes of ordinary people.