Labour reforms

Before I start, I must tell you that I am against Labor Unions. They make employees inefficient and irresponsible. But, still we should find a way where middle and lower level employees of an organization are fairly paid. Otherwise, there will be huge disparity in the society; with top few percentages of people holding much of their country’s wealth, with the disparity exponentially increasing in the near future.

              The Labor Reform, I am proposing is the salary level for the Primary Hierarchy of a Company, which is the main source of income and the core job, the Company does and for the Secondary Hierarchy of the Company, which does trivial jobs like housekeeping or security for a software Company, unrelated to the core job. Keep in mind that housekeeping is itself is a core job and in primary Hierarchy for super markets and that security is in Primary Hierarchy for Banks. The Primary and Secondary hierarchies never meet and are parallel to each other. The Company can be private or public, salary  in every level of the Hierarchy, should have a Range, whose Center, is twice, thrice or four times, the Center of the Salary Range immediately below its level. Banks may give 2 factor increase in Salary. Software Companies like Microsoft may give 4 factor increase in Salary. The Company can add as many Levels as it wishes, only that the whole Company’s Hierarchical Structure should form a Pyramid.

Example:

             

If in a Bank, Let’s say a Clerk gets a salary, whose Center of the Range is 4 Lakhs per Year. So, the next level in the hierarchy Probationary Officer will get their Center of the Range, the double ( or triple  or Four times, But should be same for the whole Organization ) of the Clerk, which is 4*2 = 8 Lakhs per Year. The Boundaries of Range in every level is calculated by taking multiplication of 2, ( triple or four times, the organization chose) and a constant 5. The Upper Range cut will be 2*5 = 10 % more and Lower Range is 10% less from the Center of the Range. Clerk’s Range of Salary is 3.6 Lakhs to 4.4 Lakhs per Year. Probationary Officers’ Salary Range is 10% less to 10% more of middle 8 Lakhs per Year, got by multiplying Clerk’s mid-Range with 2. Probationary Officers’ range is  7.2 Lakhs per Year to 8.8 Lakhs per Year. Accountant, Cash Officer and Field Officer will get between 14.4 Lakhs per Year to 17.6 Lakhs per Year.

              

Let’s study one more scenario, what if there are more than one Primary Hierarchies. As long as they are not irrelevant Secondary Hierarchies, they should meet at a point. What if , it has different number of levels. Example, There is a Manager for wrist watch in a watch company and he takes care of sales hierarchy, manufacturing hierarchy and research hierarchy. Sales hierarchy has 3 levels, Manufacturing 4 levels and research 2 levels. First, we have to take the vertical that has maximum employees. They will usually have maximum number of levels. Here Manufacturing.  It has 4 levels, replicate it across all hierarchies. Now, Research and Sales will also have 4 levels. In case, it doesn’t need that number of levels, create hypothetical levels. Like if there are Manager, Supervisor and Salesman for Sales Hierarchy. Add one more Level, Deputy Manager or Chief Salesman, wherever you want, only in theory. If you create Hypothetical Chief Salesman, Salesman will be directly promoted to Supervisor, with 4 factor ( in case the watch company chose 2 factor increase in salary in every level up ) increase in salary. You can introduce hypothetical levels anywhere. But the whole organization should form a pyramid.

              If you increase the number of Hierarchies, Mid-Level Employees will be benefitted. If you decrease the number of Hierarchies, Low Level Employees will be benefitted. Both ways, our objective is achieved. Legal system implementing this system just needs to check Income Tax Filing, if it forms a pyramid, that’s all it cares.