Saturday, July 31, 2010

DIFFERENTIAL PAY - DIFFERENTIAL SPENDING

http://www.solhaam.org/articles/kibbut.html

Within the kibbutz all are equal, all share to the same extent. Some are more able than others, some do more than others, but all are paid the same. Earnings are pooled and divided equally. But in at least one instance are differential allowances being introduced: members are to be paid according to the market value of their work {KIB 02}.

What is the value of one person's work when compared with another? How do you assess the value to the kibbutz, to the community, of the work of a nurse, teacher, manual worker, musician or manager? Market value is a rate of pay which outside the kibbutz rewards service to directors and chief executives and not service to the community. {KIB 05}

Introducing differential pay is often the prelude to managers, directors or professionals demanding higher differentials and pay for themselves. Demanding the higher pay which can be earned outside as a result of maximising profits regardless of its cost to the community {KIB 06-08}.

In some cases, kibbutz members and families are being enabled to do more for themselves, to have greater choice.

Ein Zivan shut its communal dining room and slashed collective expenditure, leaving more choices to individuals. {KIB 02}

Kfar Hanasi in 1995 intended to convert its large dining room into what will in effect be a restaurant. Kibbutz members will then have the choice of community dining, eating out or cooking at home. Family budgets are to be increased accordingly. {KIB 03}


The risk is that such changes can lead to greater inequality, particularly if combined with income differentials within the kibbutz. Such changes could reverse the very ideals on which community life is built by creating poor and rich kibbutz members.


It is those who expect to gain financially at the expense of others who are likely to advocate internal income differentials.

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