Here are some specific laws that I
would like enacted if the Republic of Star Island were ever to become
a sovereign nation:
Definitions of full-time work vs. part-time work.
A full-time worker is an individual who works for a minimum of 32 hours in an 8-day period, or, for those industries that wish to adhere to a 5-day work week with a 2-day weekend, 30 hours in a 5-day work week (6 hour work day).
A part-time worker is an individual who works between 16 and 32 hours in an 8-day period, or between 15-30 hours during 5 days of a 7-day week in which the business does not operate on the weekend. This would entail shifts of 3 to 6 hours in duration.
These 8-day and 7-day period models are designed to function with businesses that wish to operate with 2 or more sets of workers, working in shifts. The 7-day standard model is likely to still apply to education.
Other models may appear due to different industries having different needs, such as mining or healthcare, which may authorize 12-hour shifts for workers, for 4-to-7 day stints, followed by an equal amount of time off to allow the employee to recuperate and have some measure of work-life balance.
Work-life balance is essential to preventing worker burnout and reducing the need for sick days and replacement workers, all of which cut into a business' profits. It is essential for a business which is motivated by profit to ensure that its workers are not overworked, otherwise the business will fail.
Companies which offer benefits to full-time employees are barred from reducing benefits extended to workers if workers are reassigned to work part-time hours, unless the workers who will be reduced to part-time status are in agreement that benefits should be reduced. Contravention of this law will result in forfeiture of ownership to a third party which will dispense appropriate benefits.
AGE OF MAJORITY
The age of majority (18) would carry with it all the responsibilities that legal adults currently have in other established nations, but would also give citizens who reach it all of the privileges of adulthood. Legal adults are allowed to vote, obtain a marriage license, obtain licenses for/operate motorized vehicles, and purchase controlled substances. This differs from Canada, where you can die for your country, but not buy a drink at age 18. Why?
The age of majority (18) would carry with it all the responsibilities that legal adults currently have in other established nations, but would also give citizens who reach it all of the privileges of adulthood. Legal adults are allowed to vote, obtain a marriage license, obtain licenses for/operate motorized vehicles, and purchase controlled substances. This differs from Canada, where you can die for your country, but not buy a drink at age 18. Why?
MARRIAGE LAWS
Legal adults, regardless of the gender
identification of both participants, are allowed to be married in
civil ceremonies which are recognized and conducted by the
government. Married couples are entitled to all benefits and
recognition associated with being legally married.
Religious denominations may marry or refuse marriage to couples in accordance with their own beliefs, but may not promote their own beliefs in public space. Citizens may obtain marriage licenses with the consent of a legal guardian if the citizens are at minimum 16 years of age.
Religious denominations may marry or refuse marriage to couples in accordance with their own beliefs, but may not promote their own beliefs in public space. Citizens may obtain marriage licenses with the consent of a legal guardian if the citizens are at minimum 16 years of age.
PRODUCT-SPECIFIC LAWS
Advertising restrictions will be placed
on adult-oriented products. All adult-oriented advertising must
comply with necessary content restrictions, or it will be removed and
destroyed.
(a) Just as alcohol commercials would not be allowed to show persons consuming the product, neither would cannabis ads be permitted to show users using the product.
(b) Adult service provider commercials would only be allowed to air between 9 pm and 6 am. Networks with target viewing audiences below 18 years of age are prohibited from airing these ads.
(c) Still-image media such as online ads or physical magazine ads (or phone book listings) would not be permitted to display service providers who are not clothed, but may display them in a setting conducive to their business, such as in a bedroom.
(d) Online video media, including ads for these services, would also be restricted to viewers under the age of 18 via advanced biometrics identifying the age of the viewer of the media at the time of viewing.
(e) Dedicated physical magazines of adult content, such as Playboy or Maxim, would only be permitted to be sold in established adult entertainment businesses.
(f) If a citizen is in receipt of social assistance, they are prohibited from spending their social assistance funds on any of the products listed herein. Social assistance funds will be monitored in a separately administered account device to the regular personal finances device that each citizen is entitled to, in order to effectively separate the two sources of income.
*Unemployed citizens will be eligible to receive a monthly "citizens' dividend", which would be funding that they can use on non-essential items. Any additional money that they wish to spend on these services must be earned through employment.*
*Unemployed citizens who become employed can continue to receive social assistance at a reduced rate for up to 12 months from the start of their employment. Once employment is established as being continuous (after 12 months), and the individual will be able to support themselves on that income alone, benefits will then be removed. In the event that employment ends, citizens can immediately resume receiving benefits.*
(g) In instances where a pre-existing addiction has been identified with a citizen, they will be directed to a clinic and addictions counselling centre in order to help them overcome their addiction.
(h) All other drugs, with the exception of cannabis products, that are deemed to be illegal by other nations, are illegal for use in Star Island as well. In the event that a citizen or visitor to Star Island is identified to have an addiction to an illegal substance, however, the government will intervene and direct the individual to a government-monitored treatment centre, and if necessary, a safe injection site, also administered by the government.
(a) Just as alcohol commercials would not be allowed to show persons consuming the product, neither would cannabis ads be permitted to show users using the product.
(b) Adult service provider commercials would only be allowed to air between 9 pm and 6 am. Networks with target viewing audiences below 18 years of age are prohibited from airing these ads.
(c) Still-image media such as online ads or physical magazine ads (or phone book listings) would not be permitted to display service providers who are not clothed, but may display them in a setting conducive to their business, such as in a bedroom.
(d) Online video media, including ads for these services, would also be restricted to viewers under the age of 18 via advanced biometrics identifying the age of the viewer of the media at the time of viewing.
(e) Dedicated physical magazines of adult content, such as Playboy or Maxim, would only be permitted to be sold in established adult entertainment businesses.
(f) If a citizen is in receipt of social assistance, they are prohibited from spending their social assistance funds on any of the products listed herein. Social assistance funds will be monitored in a separately administered account device to the regular personal finances device that each citizen is entitled to, in order to effectively separate the two sources of income.
*Unemployed citizens will be eligible to receive a monthly "citizens' dividend", which would be funding that they can use on non-essential items. Any additional money that they wish to spend on these services must be earned through employment.*
*Unemployed citizens who become employed can continue to receive social assistance at a reduced rate for up to 12 months from the start of their employment. Once employment is established as being continuous (after 12 months), and the individual will be able to support themselves on that income alone, benefits will then be removed. In the event that employment ends, citizens can immediately resume receiving benefits.*
(g) In instances where a pre-existing addiction has been identified with a citizen, they will be directed to a clinic and addictions counselling centre in order to help them overcome their addiction.
(h) All other drugs, with the exception of cannabis products, that are deemed to be illegal by other nations, are illegal for use in Star Island as well. In the event that a citizen or visitor to Star Island is identified to have an addiction to an illegal substance, however, the government will intervene and direct the individual to a government-monitored treatment centre, and if necessary, a safe injection site, also administered by the government.
(i) Social assistance will not be
administered if an individual gains employment which pays
sufficiently to provide for their needs, with the earnings cutoff
being described in the minimum wage earnings bracket of Star Island's
budget spreadsheet.
--SECTION 1: CANNABIS/TOBACCO--
Consumption of cannabis, tobacco, and related products would be fully legalized in Star Island,
with certain exceptions:
(a) You must be 18 to purchase or use
cannabis, tobacco, and related products.
(b) You may not provide cannabis, tobacco, or
related products to minors.
i. You may grow cannabis for personal use with a personal permit given from a licensed general practitioner, which can be upgraded to a license to utilize, as long as proper safety precautions are taken in the growing process. Sale of personal use cannabis is strictly prohibited.
(d) There will be restrictions on areas where marijuana and tobacco cigarettes may be used. Users may use them in their own home or designated public spaces with proper ventilation. Homes with minors will be further restricted; cigarettes may only be used in an outdoor area of the home.
(e) A levy of 10% of the purchase price (before sales tax) will be added to all cannabis and tobacco sales to fund addiction treatment and counseling services, and healthcare costs for associated medical conditions.
(f) Any attempts to contravene these laws, including use of an intermediary to assist in law contravention, will be subject to punishment under the laws for unlicensed trafficking of commodities.
--SECTION 2: ALCOHOL--
(a)The legal age for purchase and
consumption of alcoholic beverages is 18 years of age.
(b) You must be 18 to purchase or
consume alcoholic beverages.
(c) You may not provide alcoholic
beverages to minors.
(d) Production of alcohol and related
products is subject to taxation and regulation, as is any other
business. Proper safety protocols must be enacted to ensure that any
air, water, or soil pollution created by the products used will be
properly disposed of. You must obtain a license from the government
to sell alcohol and related products. You may not produce alcoholic
products for personal consumption in your own home.
(e) Per local law, public consumption
of alcohol will be restricted to approved community events in
designated areas, and at licensed serving establishments.
(f) A levy of 10% of the purchase price (before sales tax) will be added to all alcohol sales to fund alcohol addiction treatment and counseling services, and healthcare costs for associated medical conditions.
--SECTION 3: ADULT SERVICES--
(a) Prostitution and sale/purchase of sexual products/services would be legal for all citizens 18 and older, upon verification of age of majority between all participants.
(a) Prostitution and sale/purchase of sexual products/services would be legal for all citizens 18 and older, upon verification of age of majority between all participants.
(b) Prostitutes (hereafter identified
as “adult service providers”) must apply for an annual license
identifying them as a private contractor, and will be taxed on any
resources used in their trade, as is the case with any other business
in Star Island.
(c) Sale of sexual services includes
(1) performing sexual acts in exchange
for money,
(2) selling of pornographic/erotic
media, including media obtained online
(3) selling of physical products for use in sexual acts.
(3) selling of physical products for use in sexual acts.
*contraceptive devices may be sold to
minors, but all other products as listed above are prohibited.*
(d) Any individual who is found to be
coercing other individuals into providing services of this nature
will be held criminally responsible. Acts of this nature affect
persons physically, mentally, and psychologically, and should only be
performed between consenting individuals.
(e) Whether sold for profit or
distributed free of charge, any media depicting sexual acts involving
individuals who are not at minimum 18 years of age is strictly
prohibited.
(f) All adult service providers are required by law to use personal protective equipment to prevent transmission of infectious agents, as well as to provide contraceptive protection between client and service provider. Personal protective devices will be available for purchase to adult service providers through public health clinics, where they may be purchased in bulk at a reduced cost. When purchased by a licensed adult service provider, they will be recognized as essential expenses for purposes of business, and thus not be taxed.
--SECTION 4: GAMING--
Sports betting involving legal currency is legal, provided that the following conditions are upheld:
0. The sports league in question must also consent to the allowing of wagers on their events. This law supersedes all preceding laws on sports betting.
(f) All adult service providers are required by law to use personal protective equipment to prevent transmission of infectious agents, as well as to provide contraceptive protection between client and service provider. Personal protective devices will be available for purchase to adult service providers through public health clinics, where they may be purchased in bulk at a reduced cost. When purchased by a licensed adult service provider, they will be recognized as essential expenses for purposes of business, and thus not be taxed.
--SECTION 4: GAMING--
Sports betting involving legal currency is legal, provided that the following conditions are upheld:
0. The sports league in question must also consent to the allowing of wagers on their events. This law supersedes all preceding laws on sports betting.
- A physical or digital record of all bets is made for verification in case of dispute of outcome.
- All participants are identified on the record of every bet placed.
- All participants are above the age of 18.
- All participating athletes, coaches, trainers, referees, volunteers, medical professionals, lawyers, owners, or sponsors affiliated with athletes or sports teams are prohibited from placing bets on sports events in which their presence could in any way affect the outcome of the event.
- Attempts to subvert in-place rules restrictions are prohibited, i.e. “I'll bet on your team to win against that other team if you'll bet on my team to win against this other team.”
Lottery rules:
- All lottery programs must be registered with the government in order to be taxed, as with any other business.
- Any person working in a given lottery program may not participate in the games provided by such lottery until a period of 4 weeks after ending their employment at said program.
- Informal lotteries, such as fund-raising 50/50 draws for personal causes, must also obtain temporary licenses for the duration of the lottery campaign.
- All participants in lottery games, with the exception of informal lotteries, must be over 18 years of age.
- State-sanctioned lotteries (ones specifically run by the government) will donate 100% of earnings after staff wages and expenses to charity and medical causes, including a treatment center for gambling addiction.
Casino games:
- As with sports betting, all participants in casino table games must be at minimum 18 years of age, and provide valid identification to be recorded on a physical or digital record of the game being played.
- Wagers must be made only with legal currency or betting chips provided by casinos. Any other form of payment (i.e. Jewelry) is prohibited.
- Casino game handlers must be aware of the physical and mental condition of all participants in their games, and take appropriate action if they suspect that a potential participant is attempting to earn money through play in order to provide for the basic necessities of life.
- Any participant caught cheating will be banned from the casino for life on first offence. Legal appeals may be filed if evidence of wrongful accusation is proven.
--SECTION 5: FIREARMS/WEAPONS--
Legal adults in Star Island may
purchase firearms and other devices classed as weapons after
obtaining a firearms license from the government, and after
undergoing stringent psychological testing, as well as an assessment
of their home to determine if it has the proper storage facilities to
keep firearms from the hands of anyone to whom the firearm does not
belong.
Hunting licenses can be issued by the government to adults, and minors who are under the supervision of a legal adult.
With regard to security, border guards and police would be armed with less-lethal armaments, designed to incapacitate, but not kill, any potentially threatening persons attempting to enter or exit the island. These armaments would include:
Targeted sonic rifles – intended to incapacitate an assailant by targeting a channel of sound to their eardrums, sufficient to cause pain, but not irreparable damage.
Net-dispensing rifles – would project Kevlar nets to surround and capture people, in order to make it easier to arrest people who would attempt to resist.
Hunting licenses can be issued by the government to adults, and minors who are under the supervision of a legal adult.
With regard to security, border guards and police would be armed with less-lethal armaments, designed to incapacitate, but not kill, any potentially threatening persons attempting to enter or exit the island. These armaments would include:
Targeted sonic rifles – intended to incapacitate an assailant by targeting a channel of sound to their eardrums, sufficient to cause pain, but not irreparable damage.
Net-dispensing rifles – would project Kevlar nets to surround and capture people, in order to make it easier to arrest people who would attempt to resist.
Pepper spray and equivalents
Electric stun batons – (tasers that
look like long staffs, attached to a battery pack on the
officer)These batons would also be detachable, and could be used as staffs to block attacks from close-range weapons, such as knives.
As a last resort, law enforcement officials would carry standard firearms, to be used in situations where if the threatening person or persons are not killed, other people may be harmed or killed.
All weapons issued to law enforcement would need an RFID key (encoded with biometrics) to operate, so that an assailant could not use these weapons against law enforcement.
NEW LAW PROPOSAL:
Potentially harmful emissions from factories are illegal. Any industry that would normally require emissions from their facilities to be released into the environment via pipes or chimneys must instead send gaseous, liquid or solid waste to a facility where the waste can be processed into a useful substance.
Vehicles which release emissions must also have a compression and storage tank attached to their tailpipe to prevent emissions from entering the atmosphere. Vehicles which are not local to Star Island would be allowed to enter, but would be required to rent or buy and use a storage tank while driving on the island, and within a 20 kilometer radius of it.
Non-compliance from factories will result in mandatory shutdown of the factory to allow for installation of emissions/waste capturing infrastructure, the cost of which will be paid by the company in non-compliance. Repeat offenders will be barred from conducting business on or with Star Island.
Non-compliance from uncapped vehicles will result in seizure of the offending vehicle. Users wishing to re-obtain their seized vehicle must comply with the requirement for an exhaust collection device in order for the vehicle to be returned. Repeat offenders will be barred from entering Star Island. Repeat offenders who are barred but still attempt to enter Star Island will be jailed and/or forcibly removed.
**Addendum – Livestock, animal and human emissions**
Livestock, other animals, and humans are unreasonable targets to attempt to constrain their emissions in the same way as a motorized vehicle. This approach is impractical for reasons of decency and animal cruelty. In an attempt to reduce emissions that may be released from livestock, dietary supplements designed to reduce their methane emissions will be added to the feed of any animals that would potentially contribute a large amount of harmful emissions to the environment.
NEW LAW PROPOSAL: Pay gap ratio cap.
The ratio of the CEO of a business's salary to the entry level worker shall not exceed 25:1. If an entry level worker makes 26k per year, no CEO is permitted to earn more than 650 k in base salary. In the case of share dividends, all companies that allow shareholders must extend the right to own shares to all employees.
A CEO in this scenario may take home 1 M (520k salary and 480k dividends) IF the entry level position's take-home earnings (salary and dividends) add up to 40 k. An entry level worker's salary must also be a living wage, especially if dividends are only given out quarterly or annually. An annual salary, for example, of 5,200, with promised dividends of 34,800, will not allow an entry-level worker to pay for their daily needs during the course of the year. Contracts for employment must be structured to allow for a salary that at bare minimum reflects a proper standard of living.
Any attempts to hide or disguise salary or dividend earnings are prohibited by law, and persons found to be breaching these laws will be sentenced to a period of time in prison consistent with the amount of time their law-breaking has been occurring. Any earnings found to be in excess of the ratio will be forfeited and given to the employees of the company. As well, while in prison, the CEO is prohibited from earning any money from their holdings or regular salary.
EXTENSION TO MULTINATIONAL OPERATIONS
If a CEO owns branches of a company in
multiple countries, their earnings from countries other than that of
their primary residence must respect the tax laws of the other
countries before being subject to taxation in the person's home
country.
Ex. If CEO earns 1 M in their home
country, and 1 M in country B, but country B's tax laws specify that
10% of all earnings must be taxed, CEO's take from country B becomes
900k before it gets into CEO's pocket. From there, applicable taxes
in country A on all earnings apply.
Further, if CEO decides to transfer all
their earnings and salary from the country of their primary residence
to a foreign jurisdiction to avoid being doubly taxed, they must also
move to that country as their primary residence, or face tax evasion
charges.
OFFSHORING - As well, all countries in
which the CEO owns parts of a business with employees must be paying
fair living wages. Any factories found to be not in compliance will
result in forfeiture of earnings to the workers in the countries that
are not paying their employees a living wage. This should act as a
deterrent to CEOs who want to offshore jobs in the name of cheap
labour.
NEW LAW PROPOSAL:
A few thousand
HNWIs (high net worth individuals) may contribute the
funds necessary for the construction of Star Island's total
infrastructure. If these HNWIs also have ownership of businesses that
allow them to earn vast amounts of wealth, how can we ensure that the
wealth generated (at least from Star Island businesses) is more
evenly spread out to the entire populace?
Proposal A. Mandatory investments
As a condition of operating a business in Star Island, a HNWI must channel no less than 50% of their take-home profits back into the local economy, whether through grants or other donations. Income tax deductions will not apply in Star Island, as no income tax is applied in Star Island to any citizen, however, these donations will not count toward the HNWI's total recorded income for the year.
As a condition of operating a business in Star Island, a HNWI must channel no less than 50% of their take-home profits back into the local economy, whether through grants or other donations. Income tax deductions will not apply in Star Island, as no income tax is applied in Star Island to any citizen, however, these donations will not count toward the HNWI's total recorded income for the year.
Proposal B. Controlling share legislation: No individual, regardless of their
economic status, is permitted to singularly own a controlling share
(50%+1) of a business in Star Island that employs 2 or more people.
(Sole
proprietorships are an obvious exception, as only one person, the
owner, is employed. 2-person partnerships are also exempt, as the
ownership percentage should be easily negotiable between 2
individuals).
This legislation is intended to prevent a HNWI from making unilateral decisions about subjects such as relocation of a business, staffing levels, or the amount of money than anyone working for the company can make. As well, no board of directors is permitted to own a controlling share of a business, for the same purpose. Entry level employees must be able to have some negotiation power when issues such as production, benefits, wages, materials costs, etc., are up for discussion.
This legislation is intended to prevent a HNWI from making unilateral decisions about subjects such as relocation of a business, staffing levels, or the amount of money than anyone working for the company can make. As well, no board of directors is permitted to own a controlling share of a business, for the same purpose. Entry level employees must be able to have some negotiation power when issues such as production, benefits, wages, materials costs, etc., are up for discussion.
Scenario:
HNWI Henry Wei has a personal fortune from his diversified portfolio
of *I* 2 billion (Actually $CDN 2 billion,
converted into Star Island Credits.(*I*) )
Wei
decides that he wants to continue operating his textile production
business in Star Island when he moves there. He puts forth his own
money (*I* 50 M), and shortly thereafter, the
textile factory is ready to begin production. The textile factory in
Star Island produces and sells *I* 5 M in shirts
and pants in its first year. Wei has complied with Star Island's
policy for fair sharing of profits with his employees, ensuring that
he takes from the profits no more than 25x the entry level wage in
the company. He takes from the 5 M a share of *I* 600k,
being 24x entry level salaries of *I* 25 k.
Total expenses from the first year of production are *I* 1 m. After all 100 employees are paid, and Wei has taken his pay, that leaves the company with *I* 900 k in positive cashflow.
Total expenses from the first year of production are *I* 1 m. After all 100 employees are paid, and Wei has taken his pay, that leaves the company with *I* 900 k in positive cashflow.
Pleased
with the production of this venture, but realizing that his own
fortunes are taking a hit, Wei decides to open a second factory, for
another *I*
50 M.
From a starting point of *I*
2 B, Wei
now has *I*
1.9
B, plus the earnings from his textile factory's first year of
business.
After
5 years, factory workers begin to complain that their wages are
stagnating as the cost of living is rising. They blame Wei for
hoarding his vast fortune, and demand that the government take
action.
Star
Island's government has no authority over the wealth that Wei has
acquired prior to becoming a resident of Star Island, which in this
case is his original *I*
2 B.
However, the mandatory profit investment clause is enforced on all
profits Wei earns in Star Island.
Wei
is now mandated to invest or donate 50% of his take-home earnings in
causes that will not provide him with any compensation. In its first
year of enactment, this contributes *I*
1.2
million to causes such as food banks and government social assistance
grants in succeeding years.
In the tenth year of operation, Henry Wei dies. His will states that all of his assets are to be donated in equal proportion to his five children and his widow. Wei's personal assets of *I* 2 billion are now subject to an inheritance tax, as they were not place in any tax-shielding trust or account. The inheritance tax level is set at 1% for wealth of under *I* 100,000, with gradations of 1% increase for wealth up to *I* 1 M, at which the inheritance tax maxes out at 10%.
As
a result, 10% of Wei's assets are given to the state upon his death –
a total of *I*
200 M,
which is put into the Republic's contingency fund while council
confers with the public on the most appropriate use of the funds. The
decision by council on where to allocate the funds is then subject to
approval by the general public in a quarterly referendum. If approved by
both council and the general public, this proposal becomes enacted, and
the funds are distributed into the budget the following year.
NEW LAW PROPOSAL:
Election restrictions
No individual is permitted to
financially contribute more than *I* 1,000.00 to a political
campaign, and no donations may be made by a business on behalf of an
individual or group of individuals. All political donations must be
made by living persons, and certifiably traceable to them. The *I* 1,000.00 limit will extend to
all contributions in the form of campaign media, whether radio,
television, internet posting, or physical campaign sign, purchased
media for data collection and other office equipment, etc., with the
sole exception of office space.
With this limit, it is unlikely that
the campaign budget for any one candidate in an election should
exceed *I* 40 million. (Total campaign spending will, in fact, likely
be far below this figure, as it assumes every living person in a
council area (group of 40,000 voters) contributes the maximum
donation.) A minimum of 2 candidates are needed for an election to occur;
if a sole candidate stands for election to a council seat, they will
be acclaimed to the council position.
One item which contributors will be allowed to contribute above the limit is in donated food to the volunteers who work in the campaign office. Donations must be marked “anonymous donor” if the donor does not in fact volunteer in the campaign office, but merely makes a donation. Conflicts of interest will be closely guarded against in all political campaigns.
One item which contributors will be allowed to contribute above the limit is in donated food to the volunteers who work in the campaign office. Donations must be marked “anonymous donor” if the donor does not in fact volunteer in the campaign office, but merely makes a donation. Conflicts of interest will be closely guarded against in all political campaigns.
NEW LAW PROPOSAL:
Inhumane cost reduction strategies
Inhumane cost reduction strategies
If a business or other entity needs to
reduce costs, it must carefully examine all avenues. Proposed layoffs
of workers should be considered a last resort, once compensation for
non-worker owners has been reduced dramatically, and external costs
have also been reduced.
Example: Company A consists of one CEO and 9 other board members, as well as 10,000 additional employees. Company A has a 1st-quarter profit (after paying its employees an agreed-upon wage) of $10 million, which it distributes equally to its board members and CEO.
Example: Company A consists of one CEO and 9 other board members, as well as 10,000 additional employees. Company A has a 1st-quarter profit (after paying its employees an agreed-upon wage) of $10 million, which it distributes equally to its board members and CEO.
In the 2nd quarter of the
year, Company A's profit is $9 million. In an effort to reduce costs
and thus increase the profit payable to board members, the board
proposes that the company lay off 1,000 of their workers in order to
reduce overhead, while mandating that the remaining workforce take on
the hours vacated by the laid off workers, without any increase in
their own wages. This proposal is agreed upon by all board members,
and then layoffs are announced.
Released workers, under the law against inhumane cost reduction strategy, have the right to contact the government in order to demand that the board of governors reverse the layoffs, and re-evaluate their cost-reduction strategy. In this case, where the primary purpose of layoffs is determined to be “so that board members can continue to maintain earnings consistent with last quarter, regardless of reduced revenues”, all laid-off employees will then re-enter the company and receive the earnings that would have been given to the board members. All board members who voted in agreement to the inhumane legislation would be mandated to receive an immediate 90% pay reduction via an “unfair labor practices tax” in future quarters. This punishment would apply for the next 12 months following its application.
(i.e. As a result, all board members complicit in passing the inhumane cost reduction strategy would, instead of receiving $1 million in quarterly profits, receive $100,000 in quarterly profits each, for the next 4 quarters. $900,000 of the earnings, or $9 million total, would be redistributed 50% to the company's workers, and 50% to social supports funding.)
For a workforce of 10,000 employees, this would result in an average annual compensation payment of $3,600.00, in addition to their fully restored regular wages.
Released workers, under the law against inhumane cost reduction strategy, have the right to contact the government in order to demand that the board of governors reverse the layoffs, and re-evaluate their cost-reduction strategy. In this case, where the primary purpose of layoffs is determined to be “so that board members can continue to maintain earnings consistent with last quarter, regardless of reduced revenues”, all laid-off employees will then re-enter the company and receive the earnings that would have been given to the board members. All board members who voted in agreement to the inhumane legislation would be mandated to receive an immediate 90% pay reduction via an “unfair labor practices tax” in future quarters. This punishment would apply for the next 12 months following its application.
(i.e. As a result, all board members complicit in passing the inhumane cost reduction strategy would, instead of receiving $1 million in quarterly profits, receive $100,000 in quarterly profits each, for the next 4 quarters. $900,000 of the earnings, or $9 million total, would be redistributed 50% to the company's workers, and 50% to social supports funding.)
For a workforce of 10,000 employees, this would result in an average annual compensation payment of $3,600.00, in addition to their fully restored regular wages.
If board members are found guilty of
a second violation of inhumane cost reduction laws, all board members
are required by law to resign, or face forced removal and
imprisonment. New board members may then be elected from the
workforce of the company.
Acceptable (humane) cost reduction
strategies
If a business is facing decreasing
profits, and having trouble paying both its workers and its owners at
the rate they are accustomed to, the owners must reduce their own
earnings significantly before appealing to the workers to do the
same.
Ex. If profits drop by $1 million, and the owner's salary is $1 million, while 50 workers' salaries are $40,000 each (in compliance with the previous law, restricting the CEO-to-worker wage ratio to no more than 25:1), a proposed annual salary reduction of $2,000 (5%) per year for workers would be acceptable IF and only IF the owner's salary were also reduced by an amount sufficient to reduce the loss in profits to 0.
The owner's previous salary of $1 m would need to be reduced to $100k in order to make up $900k of the $1 M loss, while the workers would, combined, give up $100k of their salaries.
Since this represents a 90% reduction in owner salary vs. A 10% reduction in worker salary, the percentages lost by each party are open to fair negotiation in order to achieve cost reduction goals. Percentages may, for example be 75/25, instead, meaning the owner loses $750k and earns $250k, while employees lose $250k per year, taking home $35k each.
Ex. If profits drop by $1 million, and the owner's salary is $1 million, while 50 workers' salaries are $40,000 each (in compliance with the previous law, restricting the CEO-to-worker wage ratio to no more than 25:1), a proposed annual salary reduction of $2,000 (5%) per year for workers would be acceptable IF and only IF the owner's salary were also reduced by an amount sufficient to reduce the loss in profits to 0.
The owner's previous salary of $1 m would need to be reduced to $100k in order to make up $900k of the $1 M loss, while the workers would, combined, give up $100k of their salaries.
Since this represents a 90% reduction in owner salary vs. A 10% reduction in worker salary, the percentages lost by each party are open to fair negotiation in order to achieve cost reduction goals. Percentages may, for example be 75/25, instead, meaning the owner loses $750k and earns $250k, while employees lose $250k per year, taking home $35k each.
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