Monday, August 18, 2014

A Days Work for a Days Wages

We hear a lot about pay equity, we hear a lot about exploitation of workers, slave labor, outsourcing of labor to other countries.  Some people claim they are losing their jobs to foreign countries especially in the manufacturing sectors.  Sometimes its straight wages sometimes its less environmental restrictions.  There are lots of factors but here we are focusing on one in particular:  Equal pay for equal work.

Interestingly enough this is something that is meant to happen, we are meant to work together as one world in peace, a simple look at revelations shows this:
“A quart of wheat will cost you a whole day’s wages! Three quarts of barley will cost you a day’s wages too. But don’t ruin the olive oil or the wine.”
This is because we will eventually all be on one currency, we will all get paid in that currency and buy our goods at the same price.  We are seeing signs towards global trade agreements, some large agreements are already being signed.

Anyways, I am getting off topic, the focus here is on Equal pay for equal work.  What does equal pay mean?  Well some might say the salary or hourly pay must be the same dollar amount in a base currency say US Dollars.  But not necessarily is that fair as goods and services are not currently the same price in various regions.  Also some regions offer benefits that others do not.  Some regions pay more taxes.  The key first step is determining what factors we can apply to these wages so they are in fact comparing apples to apples.  

My initial thought is that as you delve deeper into the wages you will see that the wages in Ukraine, Romania, India are even less when we factor all these in than a simple wage comparison.  

Here are some samples for ASP.NET in different countries straight wage comparison in US Dollars: 

India: 24,000 rs = $394.575 US

Ukraine: $20,000 -30,000 US

Canada: $50,000 - $80,000 US

Ok so by moving a team of .NET developers from Canada to India if we assume low end in Canada $50,000 - $394.575 = $49605.425.  Yes but the quality is not good and you have to bring it back and work on it. You have to factor in lost days due to a lot more holidays.  Now factor on the amount companies have to pay for benefits such as dental and health in the Canada. Add that to the $50,000 and you start to see the difference grow.  

I understand that paying the individual that much more in India would cause more problems as there would be more of a divide between rich and poor.  So here is what we are suggesting.  Take the $50K or even a portion of it and invest it in the country they are working.  Donate it to a hospital, school, food bank, or some other charity.  Its only fair.  I look forward to comments on this and to hear stories from companies that are willing to take the challenge.  Tell us how you are doing this and we will feature your story on this blog.  

If you know a company or are a company taking this initiative or one like it, email us at or and we will post your story.

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