PNGTUC backs in-depth probe
THE PNG Trade Union Congress fully supports the need for a thorough investigation into the Department of Finance.
The allegations of mismanagement are very serious and the Government must ensure that the commission’s work is not derailed by any one who may be implicated.
It is imperative that an uncompromising team of commissioners and staff with the necessary expertise and ethical standards are appointed to carry out the investigation.
These individuals must satisfy a very strict test of character that leaves no doubt about their past and present associations or dealings.
Vetting of commissioners and staff cannot be left to bureaucrats or politicians.
We would like to suggest that one representative each from churches, workers, employers, civil society and Government are appointed to carry out the vetting process.
On the question of remuneration, the congress does not necessarily oppose the rates because they are “too high” per se (although in this case, we believe they are).
On the contrary, we oppose the high rates because they cannot be justified.
We denounced the hefty increases sought by parliamentarians for the same reason.
Parliamentarians and bureaucrats have long applied (albeit unconsciously) what is known as the “just price doctrine”.
This doctrine argues that the social position of a person or group of persons should determine the level of remuneration one receives.
This doctrine, however, has long been discarded as a yardstick and for good reason. It creates inequalities, it fails the test of fairness and most of all, it is completely devoid of scientific, mathematical and economic reasoning.
We would be bankrupt on the first day if we were to give a blanket application of this doctrine in today’s workplace.
For us the key argument revolves around the issue of justification as it lies at the heart of remuneration theory and practice.
It guides for instance the distinction between how much a lawyer should be paid as opposed to how much a doctor should be paid.
Wage setting mechanism and criteria in today’s workplace is well established and incorporates a broad range of factors.
It is not perfect in the sense that it never leaves everyone satisfied.
Furthermore, the prevalence on conceptual variations means the approach may differ from country to country.
Fundamentally, however, there is agreement on the basic thrust of wage setting, thus determining wage may typically include examining issues surrounding supply and demand, capacity to pay, inflation/cost of living, national wage structure, skills, productivity and performance.
Space does not permit a detailed analysis. However, every time unions and employers negotiate wage adjustments and terms and conditions of employment, we do battle over much of the same areas.
The point is, it defies reason and government wage policy that politicians and bureaucrats are allowed to pluck out figures from the sky to awards themselves or persons engaged in some ad hoc work such as the commissioner’s overly, generous packages in the absence of satisfying legal, political and socio-economical arguments.
Indeed, such practice on its own may be deemed as constituting a form of corruption as it appears highly irregular.
In terms of wage policy, it constitutes double standard in the sense that there is one way policy for politicians and bureaucrats and one for the unions, employers and other groups.
It begs the question how can a commission conduct investigations if at the outset, serious questions loom over the quantum of emolument and the apparent cavalier manner in which they are arrived at.
At present, it appears that there is no mechanism or body entrusted with the responsibility of setting terms and conditions of those engaged to carry out such inquiries.
The present regulatory regime appears to be in need of appropriate amendment to include matters relating to terms and conditions.
It is high time these requirements are put in place if the public is to take the findings of the Commission of Inquiry seriously.

John Paska, PNGTUC general secretary
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