State-owned enterprises pay more than private ones

opublikowano: 2008-09-05 14:24

Low wages in the public sector are sheer myth. The average wage in July 2008 amounted to PLN 3,873 (EUR 1,146) in state-owned enterprises and administration. In the industrial sector, it amounted to PLN 3,229. The difference is PLN 644, or 19.9 percent. In the last 12 months, wages have grown by PLN 335, or by 11.6 percent in the private sector and by PLN 498, or by 14.8 percent in state-owned enterprises and administration.

Meanwhile, trade unions, demand raises.

“State-owned enterprises have good financial results and can afford to raise wages. If they didn’t have profits, there would be no raises”, Jan Guz, OPZZ trade union head said.

Economists view the issue quite differently.

“A 15-percent wage growth dynamics in the public sector is very bad sign for the economy. Majority of state-owned enterprises are not profitable or have minimal profits but despite this, they give away their money. The best example are mining companies. Despite good market conditions in the world and high coal prices, the profitability of mines is very small and the state has to help them sometimes. But miners’ wages grow very fast”, Jan Winiecki from West LB Bank Polska commented.

(PLN 1 = EUR 0.296)