Inequality grows as CEOs blackmail the rest of us
By Yves Engler · December 4, 2013
Last week in Switzerland big money staved off an important challenge to big paychecks. But the sentiment that spurred a Swiss effort to tie executive compensation to common workers’ wages will not be defeated so easily.
A Sunday ago Swiss voters said no to a referendum question that would have capped executive compensation at 12 times the lowest paid worker in the firm. After gaining over 130,000 signatures to put the question to voters, proponents of the initiative were overwhelmed by a flood of money claiming a ‘yes’ vote would drive companies away. Early polls found 46% of the Swiss public opposed to the 12:1 pay measure but with opponents spending up to 50 times more than the ‘yes’ campaign, 65% ultimately voted ‘no’.
According to supporters of the measure, the average Swiss CEO made 43 times the average wage in 2011, up from six times in 1984. A number of top Swiss CEOs make more than 200 times their employees’ wage.
But Switzerland’s CEO-to-worker pay differential appears socialistic compared to North America’s. After the US, Canada has the second highest CEO-to-worker pay ratio. Last year, for instance, the CEO of BCE, George Cope, received $11.1-million in compensation. This staggering sum is nearly 200 times more than what a Bell Canada technician in Toronto makes and 2,000 times the pay of an Indian call-centre worker who responds to Bell customers.
Despite making 200 times the average industrial wage, Cope was not the best-paid executive in Canada. According to the Canadian Centre for Policy Alternatives’ summary of Canada’s 100 highest paid CEOs in 2011, the $11.1 million Cope made in 2012 would have placed him just off the top 15. Incredibly, the CEO of Canadian Pacific, Hunter Harrison, took home four and a half times Cope’s pay.
In recent years the difference between regular employees’ pay and CEO compensation has grown rapidly. A recent Globe and Mail survey found that ratio has reached 122-1 at Canada’s biggest firms, up from an average of 84-1 a decade ago. Using a different set of data, the CCPA and AFL-CIO put the Canadian CEO-to-worker pay ratio significantly higher.
As a flagrant symbol of growing inequality, executive pay is increasingly facing political challenge. While the 12:1 initiative was defeated, in March more than two-thirds of Swiss voters supported a referendum question requiring companies to give shareholders a binding annual vote on executives’ pay, while outlawing bonuses to executives joining or leaving a business or as part of a takeover. Similarly, some EU officials have suggested that shareholders should be given the right to vote on the ratio between a company’s best and worst paid workers.
The French government took office last year saying it would limit executive salaries at state-controlled companies to a maximum of 20 times that of the lowest-paid employees and on Wednesday Ontario New Democrat leader Andrea Horwath called for the salaries of CEO’s at the province’s hospitals, electrical utilities and other public sector agencies to be capped at $418,000, twice the premier’s annual salary.
Politicians should legislate a maximum pay differential between the best and worst paid workers in all companies. How about a ratio of 20 times that’s steadily reduced over time?
It may be difficult, but I’m sure CEOs like Bell’s George Cope could learn to cope on a million bucks a year.
Swiss take obligatory army service to referendum
RT | September 18, 2013
On Sunday, the Swiss are voting on a proposal to abolish military conscription in favor of a voluntary army. The country with no clear foes and a long tradition of neutrality could find better ways of spending money than playing at war, proponents say.
Switzerland, once a proud supplier of mercenaries for numerous wars in Europe, has maintained a policy of armed neutrality for the last five centuries. It isn’t a member of any defense pacts and wasn’t even member of the United Nations until 2002. But it has an army of 150,000, the size of Austria’s, Belgium’s, Norway’s, Finland’s and Sweden’s armies combined.
Under Swiss law, all able-bodied males must take part in compulsory military service between the ages of 18 and 34. This comprises 18 to 21 weeks of basic training and further yearly refresher courses lasting 19 days. Senior officers may have to serve up to the age of 50 and spend more than twice as much time on army duty than ordinary recruits.
Boot camp is praised by advocates as a character-building experience, which teaches working in a team under stress and gives a chance to develop leadership skills. It also serves as a kind of glue for Swiss society, with connections made in the service lasting on in civilian life. For a country with four different language groups, it is seen by many Swiss as crucial for national unity.
The military is also the cornerstone of the Swiss militia, which has a role similar to the National Guard in the US. Those in the army help civilian authorities and respond to natural disasters and other major events. Many continue helping society as volunteers after retiring from the service by joining the fire service, participating in local politics. or serving other public duties.
An anachronism that costs too much
However, there are plenty who see military traditions as an expensive anachronism, which is no longer necessary. The pacifist Group for Switzerland without an Army (GSoA) has gathered the 100,000 signatures necessary to put their abolition proposal to a national referendum.
Referenda are essential to Switzerland’s direct form of democracy and are held several times a year at national, regional and local levels. An initiative must win support from a majority of voters and a majority of cantons to be passed and made law.
GSoA, which has been campaigning against obligatory army service since 1982, argues that the country located in the heart of Europe doesn’t need big military firepower to protect itself and that a purely voluntary force would suffice. It criticizes conscription, which excludes Swiss women and disrupts study and work for men, costing an estimated $4.3 billion to the economy annually.
“Not everyone has time to play war,” declares the GSoA campaign poster.
The group has pushed unsuccessfully for several referendums in the past, trying to scrap the military, preventing the procurement of American fighter jets, banning all arms exports from Switzerland, and stopping the Swiss tradition of conscripts keeping their assault rifles at home after initial training.
Sunday’s vote is not expected to go in favor of the GSoA. A survey by Swiss television in August revealed that 40 per cent of respondents would reject the initiative, with another 17 per cent leaning that way. The support for the military is particularly strong in the older generations, with 68 per cent of those over 65 opposing the initiative. Less than a third of Swiss people support the proposal.
“Switzerland needs an army,” says Jakob Büchler of the Christian Democrat Party (CVP), a member of the National Council, which rejected the initiative as cited by The Local. “We are a small country, we are a neutral country, and we are a country that isn’t in any defense alliances. We have to therefore organize our own defense and security ourselves, and that’s why we need an army.”
Opponents of the initiative fear that there won’t be enough volunteers for military service and Switzerland would then have to start a costly change to a professional army.
Globalization advancing
Lately, GSoA reasoning has found support from an increasing number of multinational firms who are not happy to see local staff being sent to boot camps, reports Reuters. The contact-building aspect of the military is diminishing too, with Swiss companies being infiltrated by foreigners – just six of the CEOs at Switzerland’s top 20 companies hold Swiss nationality – and of course females are climbing the corporate ladder, too. Meanwhile young men nowadays have other options such as internships abroad.
While the GSoA proposal is likely to be thrown out, they are still hoping for a strong showing of support for their stance as they continue their fight. “The more ‘yes’ votes we receive, the greater the pressure will be to reform the army,” says Seraina Patzen, a spokeswoman for the group.
The Swiss military are not objecting to undergoing reform. They have already shrunk the number of troops considerably. In the late 1980s Switzerland had 800,000 soldiers and officers, but by 2003 the number had dropped to 350,000. The plan is to reduce the current army of 150,000 to 100,000 in coming years.
Conscription rules were made less strict. Since 1996 conscientious objectors may serve an extended period in the civil service as an alternative to joining the military.
But the Defense Ministry maintains that a conscripted military is necessary for the country. During a recent media tour of barracks, Defense Minister Ueli Maurer said Switzerland may not face an enemy in the field, but may become, for example, a target of a cyber attack disrupting the transport network. In order for the army to respond to national emergencies, it needs to be able to draw on the best IT specialists, engineers and technicians the country has to offer.
Nobel Committee does it again
By Gunnar Westberg | International Physicians for the Prevention of Nuclear War | October 12, 2012
They did it again.
The Nobel Peace Prize to the European Union.
The Norwegian Nobel Prize committee has again decided to award the Nobel Peace Prize award to a recipient with the intention to encourage the awardee to work for peace, rather than to reward an accomplishment.
The European Union was by its founders seen as a peace organization, but has since done little to promote peace or to achieve disarmament. Most important, the EU has not at all worked to diminish the greatest threat to mankind: nuclear war. Two of the dominant members of the EU are nuclear weapon states, which have shown no intention to work to prevent a nuclear Armageddon. The EU has rather discouraged work by its member states against nuclear weapons. The two European countries who have been most active for nuclear abolition, Switzerland and Norway, are not members of the EU.
The Nobel Peace Prize committee members are appointed by the Norwegian Parliament. The Parliament has chosen to appoint mostly politicians. Maybe that is the reason the members keep rewarding politicians and political organisations. There should be members from peace research institutes, peace organisations, and respected non-political members of the community.
The European Union does not meet the requirements of a Nobel Peace laureate, according to the testament of Alfred Nobel, the one who shall have done the most or the best work for brotherhood between peoples, for the abolition or reduction of standing armies, and for the promotion of peace congresses.

