Nobody likes canned worms. | Do we really want to get into the ‘how much people are worth’ conversation?

bsommerhalder February 14, 2012 2

/ Because it isn’t nice to compare. /

Labour disputes are ugly things for a number of reasons. One of those reasons, rarely considered, is that they open up contractual details of employment for all to see.

According to Tim Bousquet, tonight’s Regional Council meeting may include a public discussion about transit operators’ wages as compared with management’s:

@Tim_Bousquet: @checkraiseNS Councillors want to discuss city vs union wage figures in public. That’s good, but I think they’re missing the point [more]

How would you like it if how much you make, how many sick days you get, and so on became coffee shop chatter?

Having your books opened up for public scrutiny is an occupational hazard of sorts for public employees. Indeed, public accountability is a matter of utmost importance among our public institutions. But at the end of the day, people who work for public entities ‘on the shop floor’ really didn’t sign up for this.

One of the ugliest things we see coming from this opening of contractual details is the tendency to compare wages across disciplines. Commenters on news articles lament that bus operators make more than teachers and EMTs (neither of which I have seen absolutely confirmed, but that is beside the point), and that therefore they should quit their whining and get back to work — as though there is some inherent value to teachers and EMTs that bus operators don’t measure up to.

Obviously, this discourse is a little bit insulting to bus operators. Although I also agree that teachers and EMTs are underpaid, I don’t see this as a necessary point to establish when considering the pay for, take the example, bus operators.

We see lots of examples where truly, legitimately good and valid arguments are being made, but where the arguer falls victim to the temptation to engage in unnecessary comparisons. For example, this article takes on the problem that women earn less than men, which is indeed a problem in our society, and one that we have to fix. However, to make the point that women (and female-dominated professions) are underpaid, the author points out that “plumbers still earn more than nurses”.

To me, both nurse and plumber are highly skilled occupations, and essential to the healthy operation of our society. It is in no way clear to me that either the nurse or the plumber should be paid more than the other. However, if one does want to make that argument (or feels that society should really tackle this question), we need to work a few things out. Again, I ask, do we really want to get into it?

Well, if you insist …

Assessing what someone is “worth”

If you’re sold on the idea that we need to come up with a way of assessing someone’s worth, first you need to get society to make some decisions around what things it values, and should be deemed compensable.

Let’s unpack the implication from above that plumbers ought not to make more than nurses. Seemingly, someone who adheres to this view must be making a calculation about the amount of good provided to society, and in this instance it’s probably that nurses provide primary medical care, while plumbers deal with sewage, drainage, and water systems. However, the argument could easily be made that plumbers are in the health care business, too: Plumbers make sanitary delivery of water and handling of waste a possibility, the absence of which would surely have negative health implications for a community.

So it turns out that your system of evaluation would have to be very complex, indeed. In just this one example, you have to go a fair bit down the chain to really define what it is to provide ‘health’. And good luck getting a society to agree on whether providing health care to sick people is more valuable than helping to create and maintain systems that make health possible in the first place.

But let’s get out of the weeds a bit; maybe the topic of health is an especially picky issue that needs more working out, but generally, this task of evaluation is not so hard to do.

Not so lucky.

Ask ten people “what is the most important thing someone can do to contribute to society at large?” and you’ll get ten different answers. They’re sure to vary from topics like scientific discovery to religion; inspiration to law enforcement; health provision to education; art to business acumen. Lack of agreement on what is most valuable in society challenges the idea that there could ever exist a worth-continuum on which we could reliably assign everybody a place.

It seems clear that appeals to comparison are non-sequiturs because everybody’s values are different, and there are no clear-cut lines. If we want to keep living in a society that divvies up currency based on the things that we do, we first have to find a way to decide what people are worth in a way that doesn’t include an assessment of what they’re worth when compared with others. After all, how could we have a good system of determining what someone is worth compared to another when we don’t have a good system for determining what either one of them is worth?

Maybe it’s not possible to come up with a good and fair worth-evaluation system, and the only real solution is to change our society from one that divvies up currency based on the things that we do into one that truly values everybody (because the intrinsic value of the person is, I hope, something that everyone can agree on). But until we have it figured out, stop with the salary comparisons. They’re petty, demeaning, and perhaps worst of all, they don’t make sense.

UPDATE (Nov 14, 11:30am): A Facebook friend made the great point that “There is a huge difference between comparing the wages of teachers and bus drivers and between management in enterprise and its workers”. I wanted to point out that yes, I agree that there is a big difference.

Flatter salary structures in organizations are better, and the only way to know the flatness of the salary structure is to compare across the organization. It’s the cross-discipline stuff I’m worried about. I’ll be glad to see the difference in pay between MT’s workers and management.

  • Ashley Morton

    It seems to me, Brenden, that you’re equating remuneration to “worth”, and I think that’s far from a complete picture. Two dynamics that I think you might be neglecting, are those of education, particularly when it’s costly, in terms of time, money, or both, and the responsibility society places on the job in question.

    On the first, for example, both the plumber (via apprenticeship = time) and the nurse (both dollar cost and time cost) have “invested” significant amounts in becoming qualified to do their jobs. However, in the current environment, it is worth noting that the minimum amount of training/cost investment required in order to be the most junior HRM bus driver is… what? I’m not going to hypothesise exactly, but I bet it’s not as much as the plumber…

    On the second, responsibility, this is the only one where managers can ever begin to justify the multiples the earn of their subordinates’ salaries (though even this justification doesn’t touch the sort of numbers we’ve seen develop over the last few years…). The most obvious is a doctor. That person bears intense responsibility. We therefore, as a society, wish to create an incentive for “the best” to do that job. It is also an unfortunate but real circumstance that senior traders & decision-makers at the world’s large investors (be they banks, governments, funds, or individuals) wield huge influence over the world’s economy. Thus, the idea that those folks make more money than, say, me… Well, that kind of makes sense (as I said, scale is a different argument).

    A case from my own experience that demonstrates both these points. While living in Norway, which has a relatively flat wage structure, we met a German immigrant. She was a certified nurse (would have been an RN in either Canada or the US), and had worked as a nurse in Norway for 3 years, before becoming fed up and going to work as a receptionist at the local town hall. She was frustrated by having invested significant time in her education, and bearing significant responsibility (If a nurse screws up, people get hurt or die..), only to make about 3-5% more than the receptionist position – and that’s before we discuss scheduling (nurses do night shifts, receptionists in municipal governments – not so much).

    So, while I think that our current wage dynamics in North America are royally messed up, I don’t think that a simple “how can we possibly compare worth?” (and the implied call for a flat wage structure) acknowledges the fact that there are actually a few legitimate axes for wage distinctions.

    Do we know what Eddie Robar makes?

    • bsommerhalder

      Thanks very much for your comment Ashley, you know I always appreciate hearing what you have to say.

      You’re right to say that I’m equating remuneration with worth in this discussion, because when it comes to employment relationships, they really are synonymous.

      On your next point, on education (or investment) and responsibility, although I didn’t mention them, I agree with you completely. But those are just different factors that society could use to measure ‘worth’ on. I’m not saying that these aren’t worthy factors to use in this process, but if those are going to be the factors, then society needs to agree to that, because those measurements are not universally applied.

      My argument is that we need to come up with a way that we consider ‘fair’ to evaluate individuals before we can go about comparing salaries across disciplines. If education/investment and responsibility are going to be main contributors to evaluation, then so be it.

      I also want to clarify that in our current system, there definitely are good reasons for differences in wage. I don’t call for a ‘flat’ pay structure, but a ‘flatter’ pay structure. Completely flat pay structures do not play well into the human tendency for competition.

      Lastly, no, we don’t know Eddie Robar’s salary. And we should.