Staff or outsource jobs?

At what point do organizations decide to lay off staff and outsource work? More profits of course, but do they really save money?

I only realized today that the entertainment complex around here now uses contractors to maintain the grounds. If you are renting an apartment, the only grounds you know is the balcony, where you grow tomato and hot peppers in pots. If you are fortunate to live in a stand alone house, you might have a backyard where you can grow some lettuce and carrots.

If you are the king of England you have castles that have grounds, and men who look after them are called grounds' men. This is how big this entertainment complex  is. It includes walkways along the river bank, the museum, a federal park, the bakery, roller skate park, shops and restaurants. The complex used to employ staff to keep the place clean. Now they have contractors.

But is it cheaper to outsource? Companies sometimes think they are saving money by getting rid of workers and hiring contractors. Not in this case. Cleaning and maintenance staff were paid minimum wage and most of them did not stay for a long time. You see them today, you don’t three months later when you go to the bakery or the museum. Contractors are not paid minimum wage. There’s a contract and they claim equipment, pick-up trucks and labour, when it is time to do their taxes. Minimum wage workers take that $800 a month, and that’s it.

That entertainment complex has its reasons for laying off workers, but for now, I will stick to the never-ending quest for profit, and more profit.

Nonqaba waka Msimang

Blogger Without Borders