Pays and Salaries – The True Cost

There has to be something fundamentally wrong with the economic climate of your environment when your pay goes from $10 to $3 a day over a decade. Where the pay is gradually becoming less.

There then has to be something fundamentally wrong with the way we function as a Global Economy as a result of a Global Free Market, since this is the reason that there are some economic climates in certain environments that are involved in this Global Economy where the pay goes from $10 to $3 over a decade.

In Bangladesh the actual hands of the Global Fashion Industry get paid $3 a day on average.
i.e. INR 190, AED 11 or 2.7 Euros.

The reason that these fashion industry workers in countries like these, ie 40 million of them are getting paid less every other year is because the CEO’s and Board of Directors of Companies like H&M, Forever 21, New Look, etc are now getting paid more but are actively trying to reduce the cost of manufacturing their products so as to capture a larger market share.

This kind of pay conditions is not isolated solely to the Fashion Industry. To draw from a personal experience, in the advertising industry in Dubai the top five advertising agencies of the world, pay some of the best salaries in the worlds so as to allow them to attract the best advertising minds, since in that region marketing and advertising is a relatively new and growing industry as countries like United Arab Emirates get more capitalistic.

In Bombay, where Capitalism has become inbred within the cities streets, Advertising and Marketing has been a growing and lucrative industry for the last two to three decades. So today you have huge percentages of a graduating batch choose to pursue a career in Marketing and Advertising. But there are just so many of them.

So the top five Advertising Agencies in Mumbai, like Ogilvy and Mather Mumbai, Leo Burnett Mumbai etc in fact simply stick fly paper outside their buildings and still attract the best Advertising minds. The fly paper is in the form of a mere INR 12,000-14,000 a month sometimes, like in the case of Oglivy and Mather Mumbai. i.e a University Graduate Student gets paid, AED 694, USD 189 a month, which would have to be the lowest I have heard mentioned in the industry. Yet, this Ogilvy and Mather branch happens to have just been ranked as The Third Most Effective Agency In The World.

The Third Most Effective Agency
Effectively saying some of the most effective minds in Advertising begin their careers being some of the worst paid.

 

The reason for this is because now there are so many Best Advertising Minds, who really want to work with the best Advertising Agencies because they believe that would provide them the opportunities for pursuing their life’s dreams.

But the reality of the situation is that in a city like Bombay, being able to make it on your own with INR 14,000 per month would be barely scrapping into a lower middle class standard of living. With rents the way they are in Bombay, almost every student who will get employed by these Best Advertising Agencies of the World, will be supported by her or his family partly or entirely. They may be living with their parents, their rent might be paid by their parents or their bills.

Effectively creating a situation where if you come from a family that is unable to support you, you are going to have a hard time being able to make it in this industry.

I know of only two in the industry who were paying all of their expenses themselves when they started out working in Bombay’s Advertising Agency immediately out of University.

There simply does seem to be something fundamentally wrong with the way pay and salaries seem to work in the developing world, and a sharp contrast helps see this wrong, the contrast in the pays and salaries of the more developed world.

In the last fifteen years there have been more than 250,000 recorded Farmer suicides in India, that’s about one farmer ever thirty minutes and it is the largest recorded wave of suicides in history. All the while Monsanto kept getting bigger and stronger.   

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