Thursday, December 17, 2009

Staff Salaries

There has been a lot of reaction (good and bad) over my report on the recent staff salaries increases.

To try and keep members better informed and to try and stop some confusion by the membership, and at the same time not divulge actual salaries, perhaps I could repeat a couple of statements I made to the board re the salaries, before going in camera to discuss the actual amounts. This information was available to any member who wished to be an observer at the meeting (and from memory there were 2 member observers present)

I made a statement to the effect that our staff are our greatest asset and virtually no individual thinks they are paid too much. But we are a non profit association, funded in the main by member subscriptions, and we must live within our means. I tried to explain that the large salary increases sought by the CEO were, in my opinion, excessive. (particularly after the increases just 12 months previously). I stated that from my experience in business employee cost blowouts can destroy a business, and more modest increases should be granted. There is a major problem with a business like ours that grants yearly salary increases. You get the issue of "The compounding of the wages bill" Anyone who understands "compounding" will know what I mean.

We do not pay salary's that one could get in private industry, or in some branches of Government. But all wages are relevant. A well paid person would think our wages are very low, while a lower paid person would think our wages are generous.

However, to try and generalize, I also made the following statement at the Board meeting. "That if you were a department head at one of our senior high schools, (I can only speak for Qld) or a senior university lecturer with 2 degrees and a masters degree and over 30 years service you would find it financially rewarding to come and work for us."

John McK

QUESTION : In the interest of transparency and openness, and to stop wild guessing games, should we publish the salaries of our CEO and managers like is done for all public companies?

I work for you, the South Queensland members. Can I get some feedback please.