(PDF, 101 mb) - USAID

November 16, 1982
To: Roger Newburn
From: Dale S. Bonde
Subject: Uganda Cooperative Transport Union Wages
According to the Chief Accountant, U.C.T.U. has proposed a
driver salary budget of 7,603,200 shillings for 1982/3,
doubling the 1981/2 actual salary expense. Also budgeted
is 31,400,000 shillings for subsistance pay, which is almost
four and one-half times the budgeted wages. Based on these
budget figures, a driver's salay is listad at.166 shillings
per day with a subsistance of 500 shillings, while a turnboy's
salary is listed at 88 shillings per day plus a subsistance
Both drivers and turnboys are allowed five
of 300 shillings.
paid sick days and 25 paid vacation days per year.
The above system of compensation could be improved, since it
encourages the driver to spond more time than necessary on a
trip. For example, if the driver makes two trips in as many
days, his total pay with subsistance would be 1,332 shillings.
Taking four days to make the same two trips would increase
his total pay to 2,664 shillings. In other words, the more
time he takes, the more the driver earns.
To discourage this situation, incentive pay could be a solution
and would also result in a more productive driver. Two
methods of incentive pay are (1)paid by the trip regardless
of time involved, and (2)paid by the kms plus loading and
unloading.
There is more incentive for the driver who is paid by the
kms per trip rather than by the hour. To illustrate, the
American speed limit is 55 miles per hour.
The driver who
is paid by the hour will average a speed of 45 miles per
hour, while the driver paid on the basis of miles per trip
will average 52 miles per hour.
However, there is a problem created in offering the driver
incentive pay, in that there is the possibility that he may
drive faster than existing road conditions should allow. A
solution to this problem might be the establishment of speed
controls implemented by having the shop set the governor on
the fuel pump to lii At the speed to a maximum of 90 kms/hr,
and then sealed. A broken seal would be cause for the
driver's immediate termination. This system has worked very
well in United States transport establishments. It is
possible, however, that no matter how good the system.
drivers may figure a way to override it.
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