Sunday 25 October 2020

Differing Industry Standards !

 What exactly is " Australia Post " ?   To most people it is those noisy little motorcycles that ride up and down their street each working day delivering the mail into their letterbox  They also run a network of suburban post offices and clear the kerbside boxes we use when we want to send a letter somewhere.

In this digital world, they also run a division that delivers parcels and since we have embraced internet shopping, that is rapidly becoming the fastest growing segment of their services.  All aspects of " Australia Post " are owned by the Federal government.

The chief executive of Australia Post is in trouble because she authorised the purchase of four French Cartier watches worth $3,000 each as incentive rewards for the four senior executives who successfully negotiated  the inclusion of banking services into the post office network.

This chief executive is a woman and she has eared the ire of the prime minister for what he terms a " scandal involving taxpayers money ".  It is demanded that she stand aside during the investigation that will follow, and this is despite that incentive by way of watches being approved by the Australia Post board.

The prime minister was so intemperate to suggest that if she was not prepared to stand aside, then " she could go ".   The threat of dismissal hung heavily in the air.  It also seems evident that the Australia Post board may not escape censure for embracing commercial practice in a competitive industry.

The fact that a service is government owned does not shield it from the need to recruit talented staff and pay them at a commensurate level with their competitors.  The money market is notorious for rewarding successful executives with " bonuses " that run into millions of dollars.   In comparison, a three thousand dollar watch pales in significance.

The chief executive of Australia Post clearly felt that her senior management team had performed well in bringing banking services under the network umbrella.  These services will simply add to Australia Post's bottom line and that reward is important to the governments financial standing.  The provision of a watch regarded well by its famous name was a relatively inexpensive way of signalling job approval.

When a government agency competes with the commercial sector its salary range is usually determined by parliament.  The treatment Australia Posts chief executive has received will send shock waves through the entire public sector.

The message is abundantly clear.  Forget trying to recruit bright and talented people who will expand the services offered because they will work at a pay disadvantage with private industry.  Any form of incentive for meritorious service will attract the attention of parliament and the usual political point scoring.

Safety in the public service requires keeping one's head below the parapet at all times and never straying from accepted public service standards.  Boring inefficiency is the price we pay for maintaining political expediency !

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