Plight of Workers and Profit-making by Companies – THISDAYLIVE

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Plight of Workers and Profit-making by Companies Akpan Ekpo The labour force whether skilled or unskilled constitute the major factor of production in any economy. The various gadgets which are tech

The labour force whether skilled or unskilled constitute the major factor of production in any economy. The various gadgets which are technologically driven are either invented and/or run by humans; you may call it robots, artificial intelligence etc. Labour plays a crucial role in the innovation of these gadgets. The reward to labour, in terms of wages, salaries and other allowances depend on the interplay of variables existing in an economic system.

In modern capitalism, a worker is paid at least the value of its marginal product of labour implying that the worker receives a reward to enable him to pay his way to work daily while the owner sells the product created by the worker with the view of maximizing profit after subtracting the usual costs.

Let me focus on the plight of workers in the banking, GSM and oil companies in Nigeria. First, the differential between the wages of skilled workers and the management is too wide for any comfort. The economy has experienced two recessions within four years. All macroeconomic fundamentals in the last 10 years have been moving in the wrong direction, yet Banks, GSM companies, etc are registering substantial after-tax profits yet the lower level workers are poorly paid.

 

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