(03a) Introduction to the Three-Power system (as we all know but have forgotten to use it properly) plus an external force
- Normally, a company is run by a CEO, the highest ranking executive (the Head) in charge of total management, thus of the company. He runs the day-to-day business, together with other managers supporting the CEO in this duties (the executive board) but the CEO is responsible for the final decision. He also has to report to the...
- ... Supervisory Board (or simply Board), the second power for control purposes and representing the Shareholders. Positions in the First and Second Power are held by different people, preventing a conflict of interest. The CEO reports to the Board about decisions made by the company and then the Board will be able to make a correct judgement about the policies of the company, and whenever necessary, should be able to redirect the decision made by the CEO (if necessary remove the CEO).
- The Third Power are the employees (e.g. unions but also independent employees). They work for the company and need a healthy company in order to keep their job, therefore, in general they will try to do hard for the company.
Solution? Unions, leaders and shareholders should sit together and talk about solutions and hard choises for everyone. Together we can do it. E.g.
- no increases in wages (except automatic indexation) and abolishment of bonuses;
- all people will have to work longer (we need a system that allows breaks during our career to recharge ourselves as well as differences in retirement age because some jobs are much harder to do than other jobs);
- no dividend is paid out as long as these bad times last so companies are not stretched to the limits;
- ..... (more ideas?).