QUOTE (Bell the cat @ Mar 2 2008, 4:52 pm)

31% in one whack does seem a lot. But they have had their pay frozen for 5 years. 31% over 5 years is slightly over 5% per year which is more reasonable. My own pay rises in a private company hve been in excess of that over the last 5 years.
BTC, your own pay raises (and congratulations, BTW) are completely irrelevant to those of workers in another industry. 5% pay raises for each of the past 5 years? Did their productivity rise that much? 5% annually would have been considerably higher than inflation, so what is the justification for that figure? BTW, normally privatization opens up new sources of capital from which workers can benefit. Private sector employment generally pays more than that in the public sector? What about job guarantees, do the conductors have them? Were such guarantees part of the contract with DB?
QUOTE (Bell the cat @ Mar 2 2008, 4:52 pm)

When cost of living and inflation are taken into account a pay freeze is in effect a pay cut. And when that "pay cut" is in effect to fund the privatisation and make a mint for the institutional shareholders who take ownership of the company most normal people would see there being something unjust in that equation.
The workers voluntarily agreed to that, didn't they? That effect you lament allows companies, industries, and economies to adjust. Was the conductors' pay considered low, high, or average 5 years ago? I don't know enough about the DB privatization and any negotiations to comment on them specifically, but there is no guarantee that shareholders would profit- perhaps the government would be the big beneficiary. We don't know since it depends on future events that cannot be predicted with certainty. The chances of shareholders profiting increase if the company is operated well as a private concern, but given DB's history, that is far from assured.
QUOTE (Bell the cat @ Mar 2 2008, 4:52 pm)

first, a truly free market would drive the wages of traindrivers down to almost nothing since they in themselves do not create wealth. Especially when presumably what you believe to be 'free' about such a market would be that trade unions would be banned and workers rights curtailed. It would only be a 'free' market for the bosses and shareholders and considerably less 'free' for ordinary workers.
Train conductor salaries would not in a free market go down to zero. I have no idea where you get that from. Not only would no one be willing do the job for free (or for a minimal salary) not everyone can do the job nor can you simply replace them on a regular basis with untrained replacements. The fact that the conductors are doing the work for the salaries indicates an adequate supply at that wage level- or they wouldn't do it.
Workers' rights aren't guaranteed by the presence of unions- they are by national and state laws and by work contracts. Ask the workers at US transplant factories of BMW, Mercedes, Honda, Toyota, etc.
Incidentally, unless you assume that the railroad industry is a natural monopoly, a free market in that industry would attract capital and create more jobs, i.e., a higher demand for conductors, thus raising salaries and job opportunities.
QUOTE (Bell the cat @ Mar 2 2008, 4:52 pm)

It depends what the industry is. In the company I work for, we do not have unions, since it is a consultancy where all of us share in the management and the profits from the business. I negotiate my own salary annually and a trade union would be a hindrance to that.
I see why you agree with me on the benefits of profit sharing.