outback to jungle

Musings on experiences of volunteering in Papua New Guinea with some gratuitous domestic social and public comment

Monday, June 26, 2006

The thing is not to hold the staff

responsible for mistakes. Staff such as waiters are paid such a small fraction of the K39 cost of the meal and such a small fraction of the K220 price of the motel room. The owners and managers of these establishments think they have found El Dorado when they set up business ventures here. They do not pay the prices that Australian labour demands and if PM Howard and the 52% who support him have their way they will turn Australia into a Papua New Guinea. Of the K200 for the room at the Coastwatchers, K1 per hour would have gone to the house maid, say K10 for electricity and water, K20 for tax, the rest is for profit after capital costs. In Australia, a country motel charges the equivalent of K200, say about $A84. Of this, the house maid gets $A16 per hour, tax $A8.40; electricity, rates, water $A? But the big difference is the labour costs. Take labour costs out and the owner still has K199 to pay for overheads. In the Australian case, take labour costs out and the owner has $A 68 or in kina terms, K200 less K40 labour. So management in the restaurant ought to be investing more in training its labour force. Who can blame someone who is paid 40 cents per hour?

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