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To Newburn from Bonde, U.C.T.U. Wages 11/16/82
Medical Expense
I would suggest some form of medical insurance to control
costs. If insurance is not available. I would recommend
giving this expense in wages, since employees will run to
the clinic for every ache or pain if expenses are paid by
the company.
Social SecUritv Fund
Required by Law.
Subsistance
The only Jubsistance I would pay would be for food and
lodging based on receipts furnished. In other words, I
would not give a flat rate to go to work.
Rent &Maintenance of Staff Quarters
I would eliminate this benefit and encourage the employee to
purchase his own home, and thus would build equity in a home
for retirement.
Staff Annal Leav
Why pay for transportation to the employee's home village?
The employee should determine where and how he will spend his
vacation, including expenses.
Welfare Ee nse
Why give a food allowance? Transportation to and from work
is another benefit to reconsider. Collecting employees by
lorry is extremely expensive. Wouldn't pubi.ic transportation
be much more reasonable? Do you know the ac:tual cost of the
present system? A serious problem with friuige benefits is
that employees tend to take them for granted and learn to
expect them, not thinking of them as wages. For example. if
an administrative employee is asked what hi.3 monthly salary
is, his answer is 15,352 shillings, although he is actually
paid 35,912 shillings when fringe benefits are included.
An important advantage of converting fringe benefits to wages
is that ongoing fringes are eliminated while the employee is
not working. For example, if the employee misses one week of
work, he will lose 15,352 shillings in pay. Under the present
system, it would cost the company 20,560 shillings in benefits
earned although he is not working. I feel it is in the best
interests of the company to convert fringes to wages beck 3e
there will be more incentive to work, and higher wages usually
attract a better caliber of employee.
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