Opinion and Analysis
By DANIEL OGUTU
In Summary
- Fairness and transparency must be observed in determining remuneration to realise efficiency in organisations.
Every worker deserves a just wage for fair and
productive labour. Teachers, doctors, nurses, police, civil servants
provide critical service to the nation and they should therefore be
fairly remunerated. This begs the question as to what is fair
remuneration.
The ILO Convention 100 on Equal Remuneration broadly defines
“remuneration” to include ordinary, basic or minimum wage or salary and
any additional emoluments payable directly or indirectly, whether cash
or in kind, by the employer to the worker and arising out of the
worker’s employment.
Labour scholars and experts have traditionally
looked at fairness of remuneration in two ways: Fairness in traditional
organisations and fairness in contemporary organisations.
In traditional organisations, all employees should
be treated the same when it comes to remuneration. The general
expectation is that at the time of salary review, “across the board”
increases should be provided and these should reflect the consumer price
index movement.
This school of thought does not address the age old
argument. Which jobs are the most important? Which ones are worth more
pay? And one may question: How much more?
Fairness in contemporary organisations on the other
hand looks at the role of the individual in a job and their competence
level and performance as critical factors in the determination of fair
remuneration especially at salary review time.
Historically, the Kenyan government has undertaken
several public sector pay reviews to address the issue of fair
remuneration in the public service. This has, however, been done
through ad hoc commissions and committees.
The effect of this has been a less holistic view of
the public service remuneration since the focus of these ad-hoc bodies
were to respond to demands for pay adjustment and most often were
specific to sub sectors of the public service.
The BK Kipkulei Commission was the most
comprehensive and made far reaching recommendations about public service
pay. Most significant of all was the establishment of the Permanent
Public Service Remuneration Review Board in 2003.
The Commission proposed the adoption of a new
banding structure that placed the heads and top officials of the three
arms of government at equivalent grades.
The principle of equity in the pay policy implied
that the heads of the three arms and officials within the three branches
were of equal grade and should more or less be equally compensated.
It was expected that the structure would evolve
leading to jobs being graded and compensated equally in the public
service. The policy position adopted by Permanent Public Service
Remuneration Review Board tried to address the matter of “fair”
remuneration in the traditional sense.
While this approach was noble, the board lacked the
legal framework to execute its decisions and its role was basically
advisory to the government.
State corporations and the then constitutional
commissions exploited this loophole and initiated their own salary
reviews rewarding their staff more competitively.
This exacerbated inequity, unfairness, and
disparity- both vertical and horizontal- within the public service and
has been a major source of discontent, resulting in demands for higher
pay and the biggest single factor contributing to industrial unrest.
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